Diversification of income sources-A way towards management of risk in agriculture

Farmers’ income remained low in relation to income of those working in the non-farm sector. The non-agriculture worker earns three times more than agriculture worker. Low level of absolute income as well as large and deteriorating disparity between income of farmer and non-agriculture worker is important reason for agrarian distress in the country. Hence to tackle the distress and reduce the gap between agriculture worker and non-agriculture worker, the announcement of doubling farmers’ income was made. Farmers and agriculture labours formed 56 per cent of workforce of Karnataka state. Karnataka state endowed with plenty of natural resources, has high potential to double the income of the farmers. According to a survey conducted by NSSO in 2013, the average annual income of the farmers in Karnataka was about Rs. 1, 06, 254 which was only Rs.31, 392 in 2003. Major source of income was cultivation followed by wages/salaries, non-farm wages and livestock. Share of livestock and non-farm business increased from 2002–03 to 2012–13. The primary data collected in 2017–18 revealed that Coastal Zone had highest (Rs 8, 95, 956) annual income and had less diversified source of income. The average annual income of sample respondents was Rs. 3, 95, 224. Marketing of farm output was major area which needed the attention to double the farmers’ income. Diversifying the sources of income help the farmer to tackle the risk. The government should support the farmer through proper marketing facilities, subsidies, custom hiring centers etc. Farmers should concentrate on, reducing their input cost, diversifying their sources of income by doing allied agricultural activities and non-farm business activities.