Access to Modern Agricultural Technologies and Farmer Household Welfare: Evidence from India

Abstract

This article attempts to take up the issue of access to modern technologies and their impact on the welfare of farmer households in the context of India. An attempt has also been made to analyze this issue for different regions of India to provide a comparative picture, which assumes its relevance for holistic policy formulation. The impact of the access of modern agricultural technologies on farmer household welfare is measured by per capita consumption expenditure in rural India. To realize this objective, we utilize farm household unit-level data collected in 2003 (59th Round) by the National Sample Survey Organisation (NSSO). Descriptive analysis suggests that nearly 59 per cent of the farmer households had not accessed any source of information on modern technology. The outcome variables in terms of per capita consumption (income) expenditure show better performance for those who adopt modern agricultural technology. The logistic regression analysis reveals that controlling for other household characteristics, the access to modern technology has a significant positive impact on consumption expenditure in rural India. From a policy point of view, there is a need to take institutional measures that help small and marginal farmers to increase their earnings through better access to modern farm technology.