the question of land, livelihoods and poverty in the countryside

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    UTSA PATNAIK

    J a w a h a r l al N e h r u U n i v e r s i t y

    The Question of Land, Livelihoods and Poverty

    in the Countryside

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    Chart 1a Sectoral Output and GDP per Head, India1981-2 to 2005-6

    Sectoral Output per Head and GDP per Head, 1981

    2 to 2005-6,Rupees in constant 1999-00 prices

    0

    5000

    10000

    15000

    20000

    25000

    30000

    1982

    -3

    1985

    -6

    1988

    -9

    1991

    -2

    1994

    -5

    1997

    -8

    2000

    -1

    2003

    -4

    2005

    -6

    GDP

    PRIMARY

    SECOND

    TERTIARY

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    Chart 1b Sector shares in GDP in India 1981-2 to 2005-6(at 1999-00 prices)

    Sector Shares in GDP, Constant 1999-00 Values

    0

    10

    20

    30

    40

    50

    60

    1982

    -3

    1985

    -6

    1988

    -9

    1991

    -2

    1994

    -5

    1997

    -8

    2000

    -1

    2003

    -4

    2006

    -7

    PercentofGDP

    PRIMARY

    SECONDARY

    TERTIARY

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    Chart 2a Annual Growth Rate per decade of Central Govt.Development and Total Expenditure, 1970-79 to 1990-99

    -1

    0

    1

    2

    3

    4

    5

    6

    7

    1970-79 1980-89 1990-99

    Annual Growth Rates per Decade of Development

    and Total Expenditures, %

    DEV. EXP

    TOTAL EXP

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    Chart 2b Annual Growth Rate of Spending on Economicand Social Services by States, 1972-79 to 1990-1999

    0

    2

    4

    6

    8

    10

    12

    1972-79 1980-89 1990-99

    Annual Growth rates per Decade of Spending on

    Economic and Social Services by States 1972 to

    1999

    ECON. SEVICES

    SOCIAL SERVCES

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    Chart 2c Decline in Rural Development Spending, 1985-90

    to 2003-4

    Rural Develeopment Expenditure and

    Infrastructure Expenditure as Percent of NNP

    under Economic Reforms

    0

    1

    2

    3

    4

    5

    6

    7

    8

    1985-90 1993-4 1995-6 1997-8 2000-1 2003-4

    P

    ercentofNNP

    RDE

    IFE

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    Chart 3a Unemployment Rates 1993-4 and 2009-10, All-India Rural, Female Workers

    Daily and Weekly status Unemployment Rates ,

    Rural Females 1993-4 and 2009-10

    0

    10

    20

    30

    40

    50

    60

    70

    80

    90

    1993-4 2009-10

    Unemploymentper1000

    Weekly status Daily status

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    Chart 3b. Unemployment Rates during 1993-4 and2009--10, All-India Rural, Male Workers

    Daily and Weekly status Unemployment

    Rates,Rural Males 1993-4 and 2009-10

    0

    10

    20

    30

    40

    50

    60

    70

    1993-4 2009-10

    Unemp

    loymen

    tper1

    000

    Weekly status Daily Status

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    Chart 4a Food grains output and Availability, India 1899-1990

    Foodgrains Output and Availability per Capita, 1897 to 1990

    0

    50

    100

    150

    200

    250

    1897- 02 1903- 08 1909- 14 1915- 20 1921- 26 1927-32 1933-38 1939-44 1945-46 1951-55 1956-60 1961-65 1966- 70 1971- 75 1976- 80 1981- 85 1986- 90

    Ouput per Capita Avai labil i ty per Capita

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    Chart 4b Per Capita Cereal Output per Annum in Kg., World 1963 to2005 ( Five year average centred on specified year)

    World Per Capita Cereal Output Kg.

    0

    50

    100

    150

    200

    250

    300

    350

    400

    1963 1968 1973 1978 1983 1988 1993 1998 2003 2005

    Kilogramp

    erAnnum,

    Kg.

    Per Capita Cereal Kg.

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    Table 1 Household Ownership Holdings and Area, 1992

    and 2003 compared All-India (NSS Report 491 p.12)

    1992 2003 1992 2003

    HH %

    Area

    %

    Area

    % HH %

    Area

    %

    Area

    %

    Lowest 65 12.5 11.5 Lowest 65 12.5 11.5

    Middle 25 32.5 31 Middle 25 32.5 31

    Top 10 55 57.5

    Near-

    top 5 17 11.5

    100 100 100 Top 5 38 46

    100 100 100

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    Chart 5a Lorenz curve of Owned Land with Rural Households,All-India, 2003

    Lorenz Curve, Owned Area with Households, 2003

    0

    10

    20

    30

    40

    50

    60

    7080

    90

    100

    0 20 40 60 80 100 120

    Households

    OwnedArea

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    Table 2 Emigration from Europe 1821 to 1915 (million)

    EMIGRATION FROM EUROPE

    1821-50 1851-80 1881-1915

    Number % Number % Number %

    EUROPE 3.4 100 8.1 100 32.1 100

    of which

    BRITAIN 2.6 76.5 4.6 56.8 8.9 27.7

    GERMAN 0.6 17.6 2.1 25.9 2.2 6.9

    ITALY neg. 0 0.2 2.5 7.8 24.3

    SPAIN &

    PORTUGAneg. 0 0.3 3.7 4.3 13.4

    AUSTRIA-

    HUNGAR neg. 0 0.2 2.5 4.2 13.1

    Annualaverages 113,000 270,000 917,000

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    Table 3 Arable area, Total Output Of All Crops andOutput per Ha. In India, China and USA 2007

    FAOSTAT DATABASE

    ARABLE OUTPUT OUTPUT INDEX,

    AREA PER USA=100

    000 Ha. 000 Tonne Ha., Tonne

    INDIA 158114 858137 5.43 137

    CHINA 109365 1308745 11.97 302

    USA 170428 675872 3.97 100

    Source: www.faostat.fao.orgNote: Output includes cereals and pulses, starchy roots, sugarcrops,

    sugars and sweeteners, Treenuts, Oilcrops, Vegetablke oils,

    vegetables and fruiys, Stimulants and spices

    t

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    Chart 6a Coconut Price Trend in India compared toIndonesia and Philippines, 1991 to 2003

    0

    50

    100

    150

    200

    250

    1991

    1993

    1995

    1997

    1999

    2001

    2003

    PriceinUS$perTonne

    INDO NESIA

    INDIA

    PHILIPPINES

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    Chart 6b Index of Coconut Price 1991 to 2003, base1991=100

    0

    20

    40

    60

    80

    100

    120140

    160

    180

    200

    1991

    1993

    1995

    1997

    1999

    2001

    2003

    Indexo

    fCoconu

    tPro

    ducer

    Price,

    1991=

    100

    INDO NESIA

    INDIA

    PHILIPPINES

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    Chart 6c Price Trend of Pepper 1999-00 to 2004-05

    0

    1000

    2000

    3000

    4000

    5000

    6000

    1999-

    00

    2000-

    01

    2001-

    02

    2002-

    03

    2003-

    04

    2004-

    05

    Price in US$ per Tonne

    Internation al

    Price

    Domestic Price

    Vietnam M Price

    Indonesia M Price

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    Chart 6d Index of Pepper Price 1999-00 to 2004-05 withbase 1999-00 = 100

    0

    20

    40

    60

    80

    100

    120

    1999

    -00

    2000

    -01

    2201

    -02

    2002

    -03

    2003

    -04

    2004

    -05

    IndexofPrice,

    199

    9-00=100

    Internation al

    Price

    Domestic Price

    Vietnam M Price

    Indonesia M

    Price

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    Chart 6e Recent Price Changes, March to December 2008 (Rs.Per Quintal except Cardamom which is Rs. Per 10 kg)

    Price change from March to December 2008

    0 5000 10000 15000

    Coffee

    Cardamom

    Rubber

    Coconut

    December

    July

    March

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    Chart 7 Farmer Suicide Rate compared to GeneralSuicide Rate 2001

    Farmer Suicide Rate compared with General

    Suicide Rate, Census 2001

    0

    2

    4

    6

    8

    10

    12

    14

    16

    18

    20

    Male Female

    Numberper100,000

    Farmer Suicide Rate

    General Suicide Rate

    Ch 8 i di d l d f

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    Chart 8 Direct, Indirect and Total Demand forGrain with Rising Income

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    Chart 9a Decadal average Foodgrains Growth rate andPopulation Growth rate, 1981 to 2008

    Decade average Foodgrain Output Growth and

    Population Growth Rates, 1980-1 to 2007-8

    0

    0.5

    1

    1.5

    2

    2.5

    3

    1981-90 1991-2000 2001-08

    Percen

    tperannum

    FG

    POP

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    Note : Output is Net Output = 0.87.5 times Gross Output

    Availability = Net Output + Net Imports Net Addition to Public Stocks. Both variables divided by total population for per capita values. Chart

    updated to 2007-08 from Patnaik, 2007b

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    Chart 9c Output per Capita per annum of Cereals andStarchy Roots in China, 1988 to 2002, in Kilograms

    Per capita supplies of cereals and starchy roots, China, 1988-

    2002 (Kgs)

    50

    7090

    110

    130

    150

    170

    190210

    1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002

    cereals

    starchy roots

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    Chart 9d Use of Corn for Ethanol, USA 2002-3 to 2008-9

    Use of Corn for Ethanol, USA

    0

    50

    100

    150

    200

    250

    300

    350

    2002-3 2007-8 2008-9

    MillionTon

    Corn Output Output less Ethanol use Corn use for Ethanol

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    Table 3 The Rural poor as Percent of Rural Population,1993-4 to 2009-10

    NSS Round 50th 61st 66th 1993-4 2004-5 2009-10

    1..Direct Poverty Line DPL,.at 2200 calories 325 575 1100

    2.Official Poverty Line

    OPL, Rs. 206 356 (414) (673)

    3.Direct Poverty Ratio DPR, % 58.5 69.5 75.5 4.Official Poverty Ratio

    OPR, % 37.3 28.3 (41.5) 33.8

    5.Calorie Intake @ OPL 1980 1820(1950) 1880 6. Deficit of Calorie Intake from norm - 420 - 580(-450) -520

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    Official Poverty Lines are large underestimates

    2004-5 Official Poverty Lines (for meeting anutrition norm plus all other observedconsumption)

    RURALRs 356 per month, Rs.11.87 per Day(1820 calories)

    Revised: Rs.415 per month, Rs. 13.83 per day(1,930 calories)

    URBAN Rs. 538.6 per month, Rs. 18 per Day (1,795 calories ) Not revised

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    Chart 10a Official and Directly estimated Poverty Lines,All-India Rural, 1973-4 to 2009-10 .

    Source: Table 1 lines 1 and 5. Official poverty lines update the cost of a 1973-4 basket while direct poverty

    lines apply the official nutrition norm to the current data at each point of time

    Official and Direct Poverty Lines, 1973-4 to 2009-10

    0

    200

    400

    600

    800

    1000

    1200

    1400

    1600

    1800

    1973-4 1983 1993-4 2004-5 2009-100

    MPCE,Rs.

    DPL 2400 DPL 2200 OPL OPLT

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    0

    200

    400

    600

    800

    1000

    1200

    1400

    1600

    1800

    1973-4 1983 1993-4 2004-5 2009-10

    Official and Direct Nutrition-invariant Poverty lines, 1973-4 to 2009-10

    Official Poverty Line Direct Poverty Line

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    Chart 10c Declining Calorie Intake accessible at OfficialPoverty Lines, All-India Rural 1973-4 to 2009-10

    Source : Table 1 line 7

    0

    200

    400

    600

    800

    1000

    1200

    1400

    1600

    1973-4 1983 1993-4 2004-5 2009-10

    Declining Calorie Intake at Official Poverty Lines, 1973-4 to 2009-10

    Calories at Official Poverty Line less 1000 Official Calorie norm less 1000

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    Chart 11 Per Capita Daily Availability of Food grains in Gm.India 1977 to 1991

    430

    440

    450

    460

    470

    480

    490

    500

    1976 1978 1980 1982 1984 1986 1988 1990 1992

    GmsperDAY

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    Chart 12 Per Capita Daily Availability of Foodgrains in GmsIndia 1989 to 2009

    430

    440

    450

    460

    470

    480

    490

    500

    1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010

    Gms.Perday

    Decline in Rural and Urban per Capita Calorie Intake

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    Decline in Rural and Urban per Capita Calorie Intake1983 to 2009-10

    1800

    1850

    1900

    1950

    2000

    2050

    2100

    2150

    2200

    2250

    1983 1993-4 2004-5 2009-10

    Trend in Rural and Urban Calorie Intake per Capita 1983 to 2009-10

    RURAL Calorie URBAN Calorie

    Rural and Urban per capita daily Protein Intake in

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    Rural and Urban per capita daily Protein Intake ingm. 1983 to 2009-10

    48

    50

    52

    54

    56

    58

    60

    62

    64

    1993-4 1993-4 2004-5 2009-10

    Trend in Rural and Urban per capita daily Protein Intake in gm. 1983 to2009-10

    RURAL Protein gm. URBAN Protein gm.

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    Direct and Official Poverty Estimates All-India Rural, 2009-10

    1.Calorie Intake Level 2400 2200 2100 1800

    2.Required MPCE , Rs. 1580 1097 925 610(Direct Poverty Line DPL)

    3.Percent of Persons

    Below DPL 90.5 75.5 62 25

    4. Official Poverty Line OPL 672.8

    5. Percent of Poor Persons 33.8

    6. Calorie Intake at OPL 1870

    Di d Offi i l P E i All I di

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    Direct and Official Poverty Estimates All-IndiaUrban 2009-10

    1.Calorie Intake Level 2400 2200 2100 1800

    2.Required MPCE , Rs .

    (Direct Poverty Line DPL) 5300 2700 2125 1025

    3.Percent of Persons Below DPL 95 84 73 32

    4.Official Poverty Line OPL 863

    5. Percent of Poor 20.9 . 6.Calorie intake at OPL 1720

    Ch i H h ld L d hi A dh

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    Change in Household Landownership, 1992 to 2003, AndhraPradesh

    Percent of Total Percent of Total

    Households Owned Area CHANGE

    1992 2003

    60 12 3.5 -8.5 25 24 23.5 -0.5

    15 64 73 9

    10 28 30 2

    5 36 43 7