Economic Conditions of Marginal and Small Farmers in Uttar Pradesh: An Analytical Study

Abstract

Agriculture remains the backbone of rural livelihoods in Uttar Pradesh, where marginal and small farmers account for more than 85 percent of operational landholdings (Government of India, 2015). Despite their numerical dominance, these farmers continue to experience structural economic vulnerability due to fragmented landholdings, high input costs, limited access to institutional credit, price volatility, and inadequate market infrastructure. The present empirical study investigates the economic conditions of marginal and small farmers in Bijua and Palia blocks of Lakhimpur Kheri district, Uttar Pradesh, based on primary data collected from a sample of 50 farmers selected through purposive sampling across selected villages of these two blocks. The study analyses key economic indicators, including landholding size, cropping pattern, cost of cultivation, annual household income, sources of credit, indebtedness levels, access to government schemes, irrigation facilities, and marketing channels. Descriptive statistical tools such as mean, percentage distribution, and comparative income analysis were used to interpret the data. The findings reveal that the majority of respondents in Bijua and Palia operate on holdings below 2 hectares, with wheat, paddy, and sugarcane being the dominant crops cultivated in these agriculturally significant regions. Rising input costs—particularly for fertilizers, seeds, diesel, and labour—have substantially reduced net farm income, consistent with national trends observed in rural financial surveys (NABARD, 2018). A significant proportion of respondents from both Bijua and Palia reported dependence on informal credit sources due to delays and procedural barriers in accessing institutional loans, supporting evidence from NSSO reports on agricultural indebtedness (NSSO, 2013). Marketing inefficiencies, including reliance on local traders, mandi-level intermediaries, and inadequate storage facilities, further weaken farmers’ bargaining power and price realization, echoing broader concerns raised in policy discussions on agricultural marketing reforms (Chand, 2017). To cope with income instability, many households supplement farm income through dairy activities, wage labour, small-scale trading, or seasonal migration. The study highlights that improving institutional credit penetration in Bijua and Palia, strengthening Farmer Producer Organizations (FPOs), promoting cost-effective and climate-resilient farming practices, and enhancing rural market infrastructure are critical policy measures to improve income stability and reduce economic distress among marginal and small farmers in Lakhimpur Kheri district.