Kerala Economics and Statistics dept report pegs average monthly income of agricultural households at ₹28,984

Kerala agricultural households' income rises but remains below ₹30,000, highlighting dependence on wage labor and need for diversification.

The average monthly income of agricultural households in Kerala, while showing an increase over 2019, continues to hover below the ₹30,000-mark, indicates a report compiled by the Economics and Statistics Department of the Kerala government.

The average monthly income of agricultural households, at current prices, stood at ₹28,984 in 2024, according to the Situation Assessment Survey of Agricultural Households in Kerala: 2024-25, compiled by the department in collaboration with the Agriculture Department. Of this, crop production by itself accounted for a mere 22.97% (₹6,658), with the rest being contributed by wages (60.71%), animal farming (6.25%), non-farm business (9.93% and income from leasing out land (0.13%). In addition to these sources, the earnings from pensions and remittances stood at ₹6,348.

“This income profile underscores a high dependence on wage labour, indicating the limited profitability or scale of agricultural operations on own-farm holdings,” the report observed. Compared to 2019, the average monthly income of agricultural households in the State has risen by 61.79% – from ₹17,915 to ₹28,984 at current prices. The income from crop production rose from ₹3,638 to ₹6,658, an increase of 83.01%.

The Situation Assessment Survey captured data for the agricultural year 2023-24 and employs statistical techniques to project income levels for 2025-26. The primary objective of the survey was to assess the progress toward the State government’s policy goal, announced in 2021, of increasing the agricultural household income by 50% by 2026. Projections show that the monthly income, on an average, would increase to ₹33,411 in 2026.

For the purposes of the survey, an agricultural household is defined as “a household that has received some value of produce from agricultural activities during the reference period.”

An agricultural household was defined as any household where at least one member has self-employment in agriculture as their “principal activity or subsidiary status.” The survey also looked at households whose major source of income is self-employment in crop production. In their case, the average income rose to ₹29,011 in 2024 from ₹18,891 in 2019.

“While agricultural household incomes have improved considerably over the five-year period, the data reveals a continued reliance on wage labour and limited progress in diversifying income sources. Gains from crop and animal farming are notable but require further support. Meanwhile, stagnation in non-farm business income and the decline in land leasing returns suggest the need for targeted interventions. Strengthening farm-based enterprises and promoting dynamic non-farm rural economic activities are essential for ensuring sustainable and resilient agricultural livelihoods,” it said.