Analysing Farm Income Disparities and Delineation of Least developed Regions: A Focus on Odisha, India

The present study examined trends and growth patterns in farmers' income across districts in Odisha. It identified the determinants of farmers' income and delineated least developed regions in Odisha based on farmers' income and its correlates. The study is based on the data form a nationally representative survey, commonly known as Situation Assessment Survey (SAS) of Agricultural Households. Odisha witnessed highest growth in income (8.29 per cent) during 2002- 03 to 2012-13 mainly because of the increased income from the livestock and non-farm business sectors. However, in the recent periods Odisha witnessed a negative growth rate of -3.58 per cent (lowest among the states). Higher farm income is correlated with large land holding size, higher productivity, improved market and institutional access, and, better price realisation for produce. Districts were delineated into homogenous regions using K-means clustering technique to identify the least developed regions for prioritisation and targeted policy intervention. Mean values of income and its correlates such as operational land holding, share of crop income, marketed surplus, proportion of paddy farmers sold at MSP, and paddy price received by farmers were found to be lowest in the least developed regions. Targeting these least developed regions would have higher marginal positive impact on overall farmers income in the state.