"In rural areas,
agriculture is not the most important component any longer," says Mr.
Ramesh Chand, director of National Centre for Agricultural Economics and Policy
Research (NCAP).
"It now
accounts, as per NSSO numbers, for just 33 % of the rural economy."
From his office in
Hyderabad, Mr. C.S Reddy, the founder of APMAS, a Hyderabad-based organisation
that advises SHG (self-help group) organisations, has been watching investors
flock to buy farmland.
"In the last 10
years, we have seen a lot of farmers become wage labourers," he says.
"This is not only because they sold their land out of distress. Some of
them are starting to feel they are better off working as labour than putting
money into farming, with its uncertain returns."
A small farmer with
an acre of land will get 30 bags of
paddy. At Rs. 2,000 each, that's a gross income of Rs. 60,000. But, net of
costs, his net income will probably be closer to Rs. 20,000. Even this is
subject to weather risk and price risk for crops not supported by minimum
assured government prices. Says Mr. Deshpande of ISEC:
"The 59th NSSO
report asked farmers if they wanted to leave agriculture. 40 % said
'yes'." That was in 2002. Since then, the drift has only continued.
Src: ET
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