Income Sufficiency Assessment of Rural Households: A Case Study of Malda District in West Bengal, India

The study investigated the income sufficiency of rural households in Malda district of West Bengal. The primary data of 60 randomly selected farmers was collected through survey method during 2023-24. The findings revealed that on an average rural household earns Rs. 2,60,555.47 per annum (Rs. 21,713/month) and spends Rs. 207448 annually (Rs. 17,287.35/month). Field crops (85.34 %), Agricultural labour (72.60%) and business earnings (34.75%) occupies the highest share in the farm, off-farm and non-farm income sources, respectively. Family size and annual income had a significant positive effect on both farm household annual food and non-food expenditure. The result further revealed that large farmers have significant level of financial sufficiency with highest income-expenditure ratio (1.64) followed by medium farmers (1.35), non-cultivators (1.19) and small and marginal farmers (1.16). Average propensity to consume was highest for small and marginal farmers (0.86) and lowest for large farmers (0.61). However, farm income sufficiency revealed that farm income is insufficient to cover expenses of small and marginal farmers. Although agriculture remained the primary source of income, engagement in non-farm activities significantly contributed to households’ income sufficiency. Additionally, small land holdings and low wage rates are the major constraints in the region. Thus, policymakers should focus on an integrated strategy to enhance off and non-farm income opportunities along with capacity building programs in rural areas.