In different phrases, regardless of a better share of vegatables and fruits within the whole VOP, Bihar didn’t document a correspondingly larger VOP per hectare than in Punjab.
By R Ramakumar & Ashish Kamra
We write this word in response to the article titled ‘Can over-reliance on MSP hurt agricultural states?’ by Shweta Saini and Siraj Hussain (FE, September 24; bit.ly/338h2Du). In that article, the authors evaluate Punjab and Bihar with respect to the farm Acts handed by Parliament. They evaluate the ‘earnings per family’ and the ‘earnings per hectare’ throughout these states, and argue that farmers in Bihar generate extra earnings per hectare than farmers in Punjab. They listing two causes for this phenomenon: (1) the absence of APMC Act in Bihar; and (2) the absence of a robust MSP-based procurement system in Bihar. As a consequence, they argue, Bihar has had a extra diversified cropping sample than Punjab, with one-third of the worth of output coming from vegatables and fruits.
We don’t want to be part of subject with the authors on their opinion on coverage issues. However we do want to level to many basic errors of their methodology and estimates. These estimates, actually, kind the muse of their article and argument.
The discovering that Punjab’s earnings per hectare is decrease than Bihar’s, which is counterintuitive to start with, ought to have alerted the authors to have a more in-depth take a look at their numbers. In response to the authors, who use information from the NABARD’s All India Rural Monetary Inclusion Survey 2016-17 (NAFIS), incomes per hectare in Kerala, Bihar and Punjab had been Rs 34,910, Rs 4,236 and Rs 3,448, respectively. Nonetheless, the typical month-to-month incomes per family in Kerala, Bihar and Punjab had been Rs 6,284, Rs 1,652 and Rs 12,481, respectively. This, in line with the authors, was due to the upper share of vegatables and fruits within the cropping sample of Bihar, and of spices and plantation crops within the cropping sample of Kerala. The farm Acts, they proceed, would set off such a diversification of cropping sample in Punjab additionally.
We used information from two separate sources to cross-check these numbers. To start with, we used purely macro-aggregates of worth of output (VOP) in 2016-17 printed from the Central Statistics Workplace (CSO). We thought-about VOP from all crops for all of the three states, in addition to VOP from vegatables and fruits in Bihar and Punjab, and from spices and plantation crops in Kerala. We then divided these figures for VOP at present costs with the online sown space (NSA) in every state to acquire figures for VOP per hectare. We discover the next:
1. Certainly, the share of VOP from vegatables and fruits in VOP for all crops was larger in Bihar at 31% than in Punjab at 12%. In Kerala, the share of spices and plantation crops within the whole VOP was 23%.
2. Nonetheless, these didn’t translate to larger VOP per hectare in Bihar. VOP per hectare was Rs 1,813 in Punjab, Rs 1,745 in Kerala and Rs 1,290 in Bihar.
In different phrases, regardless of a better share of vegatables and fruits within the whole VOP, Bihar didn’t document a correspondingly larger VOP per hectare than in Punjab. Kerala’s numbers had been owing to the large-scale cultivation of spices and plantation crops, which can’t be replicated in different states because of its agro-ecological specificities.
We then checked out a really completely different information supply: The seventieth spherical of the State of affairs Evaluation Survey (SAS) performed by the Nationwide Pattern Survey Workplace (NSSO) in 2012-13. We used unit-level information from this spherical to evaluate each earnings per hectare and earnings per agricultural family. In 2012-13, the typical month-to-month earnings from cultivation per agricultural family was Rs 1,715 in Bihar, Rs 3,531 in Kerala and Rs 10,862 in Punjab. However the worth of output per hectare was Rs 35,825 in Bihar, Rs 88,785 in Kerala and Rs 78,652 in Punjab—i.e. the worth of output per hectare in Punjab was greater than double of that in Bihar.
We want to level out yet one more subject within the article by Saini and Hussain. The authors have used information on common month-to-month earnings from cultivation from the NAFIS. From there, they calculate earnings per hectare by dividing incomes by the typical landholding dimension, i.e. 3.62 ha for Punjab, 0.39 ha for Bihar and 0.18 ha for Kerala. However these figures for common landholding dimension will not be from the NAFIS. Within the NAFIS, the typical land possessed is 0.5 ha in Bihar, 1.1 ha in Kerala and 1.4 ha in Punjab. It seems to us that they’ve taken the typical possessed landholding dimension from the Agricultural Census. If Saini and Hussain had used land possessed from the identical supply (the NAFIS) itself, they’d have seen that earnings per hectare was Rs 3,304 in Bihar, Rs 5,713 in Kerala and Rs 8,915 in Punjab. In our view, the arbitrary use of knowledge from a number of sources leaves their evaluation poor. If that they had used information on each earnings and land from the NAFIS, they’d not have arrived at their inaccurate conclusions.
As we talked about earlier, we don’t write this to quarrel over whether or not diversification of the cropping sample in Punjab is fascinating? Nonetheless, we imagine that such a conclusion is just not borne out of the best way the authors have argued it out. Bihar’s earnings per hectare is just not larger than Punjab’s earnings per hectare. If we rephrase this following Saini and Hussain’s evaluation, regardless of diversification of cropping sample, Bihar’s earnings per hectare was decrease than in Punjab.
(Ramakumar is NABARD Chair Professor, Tata Institute of Social Sciences, Mumbai. Kamra is an unbiased researcher and information analyst)
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November 25, 2020 at 06:18AM
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