June 1: Even while the farm sector continues to be in the throes of a crisis, people seem to have moved away from agriculture but at the sametime found a living in agriculture-related pursuits like animal husbandry and agricultural services.

According to the largest survey of enterprises and establishments undertaken by the government agencies in the country, namely, the latest Economic Census, the growth of agricultural establishments has been double that of non-agricultural establishments between the years 1998 and 2005. The Economic Census 2005 Report released last week indicated that the growth of non-agricultural establishments is probably an indication of crisis in the farm sector. Among agricultural establishments, "Farming of animals’ dominated with a share of 87 per cent (5.29 million establishments) and agricultural services had a share of 7.4 per cent. Retail trade, other community, social and personal service activities’ and manufacturing were the three most important activities in the non-agricultural sector.

Interestingly, the number of establishments under non-agricultural activities was more in the rural areas compared to the urban. Rural areas accounted for 19.83 million establishments (55.46 per cent) while urban areas housed 15.92 million establishments (44.54 per cent).

As per the results of Economic Census 2005, there were 41.83 million establishments in the country engaged in different economic activities other than crop production and plantation. Out of these, 25.54 million establishments (about 61 per cent) were in the rural areas and 16.29 million establishments are in the urban areas. Similarly, the Census found 211 million households in one or the other tiny enterprise.

Of the 42 million establishments, only six lakh enterprises employ more than 10 people. More than 55 per cent of these larger establishments (employing more than 10 people) were concentrated in the five states of Maharashtra, Tamil Nadu, West Bengal, Andhra Pradesh and Kerala. Between the previous Economic Census of 1998 and the present one, employment in informal sector grew from 54 per cent to 68 per cent. Five States — Tamil Nadu, Maharashtra, West Bengal, Uttar Pradesh and Andhra Pradesh — together account for about 50 per cent of the total establishments in the country. Around 65 per cent of establishments in the country were own-account establishments, that is establishments without any hired worker.

About 100.90 million persons were reported to be working in the establishments found during the survey. More than 52 million were in rural areas and 48.83 million were in urban areas.

The share of adult females in the total employment of 100.90 million persons, was 20.20 million, which is around 20 per cent of total employment.

Howrah News Service 2008 ©