Viability of small and marginal farmers and its determinants: A comparative analysis of Karnataka and Punjab

The present study has identified various factors in influencing the viability of small and marginal farmers in Punjab and Karnataka. By using multi-stage random sampling technique, a total 120 small and marginal-farmers, 60 each from two study states was taken for the analysis. The reference period of the study is 2017-18. The farmers were grouped into viable and non-viable classes based on the economic surplus left with them and the factors influencing viability were identified through applying the linear discriminant function. It has been found that the proportion of viable farmers in Punjab was relatively higher than to that in Karnataka. While in Karnataka, only off-farm income and family size were observed to be the important factors in determining the viability, in Punjab along with these the farm size, income from dairy and the domestic expenditure on non-food items were also the significant factors responsible for viability of small and marginal farmers. Therefore, on the policy front, in both states all efforts should be made to create income supplementing off-farm employment opportunities near the rural areas. In Punjab, besides emphasizing on judicious use of farm inputs which will help in raising farm profitability, the farmers need-to curtail their domestic expenditure on non-food items.