52% of Agricultural Households in India Rely on Non-Farming Income: PRICE Report

Due to growing instability in agriculture caused by market fluctuations and environmental uncertainties, many farmers in India are turning to non-agricultural income sources. This has been revealed in a working paper released on June 1 by the private think tank People Research on India’s Consumer Economy (PRICE), titled “Reimagining Livelihoods of Annadata Households Beyond Farming.”

The report shows that 52% of agricultural households now earn additional income from non-agricultural activities. This trend toward diversification provides them with greater financial resilience, helping mitigate risks associated with agricultural income—such as price volatility, weather events, and other external shocks.

Nagaland tops the list, where 98% of farmers derive additional income from non-agricultural sectors. It is followed by Tripura (94%), Meghalaya (85%), Tamil Nadu (83%), and both Sikkim and Uttarakhand (80%).

Meanwhile, in states like Arunachal Pradesh, 82% of farmers reported agriculture as their sole source of income. This was followed by Punjab (78%), Assam (77%), and Karnataka and Manipur (73%).

According to the data, agricultural households earned an average annual income of ₹7.31 lakh in 2024-25. However, the variation is significant—poor farming families earn around ₹2.03 lakh annually, whereas wealthier farming families earn up to ₹26 lakh.

Despite diversification, around 80% of total household income still comes from agriculture-related activities. Of this, 67.1% is from direct agricultural practices, 7.4% from allied activities like dairy and livestock, and 4.4% from agricultural labor.