427
All rural households operating at least 0.002 hectare of land during
the last 365 days preceding the date of survey are considered as cultivator
households. On an average, they spend more on productive purposes, i.e.,
they spend about 62 per cent of cash due in June 2002 as compared to 29
per cent by non-cultivator households. Rural households operating no land or
holding land less than 0.002 hectare are non-cultivator households and they
are further sub-divided into agricultural labourers and artisans. As referred
to above, they spend only about 29 per cent of their cash dues on productive
purposes.
While cultivators thus spend 38 per cent of cash dues on non-business
expenditure, non-cultivator households spend 72 per cent for such non-
business purposes.
Deterioration in Productive Spending Over the Years: Cultivator and Non-
Cultivator Hosueholds
A better insight in to the changing spending habits of rural
households, is brought out by an analysis of the differing behaviour of
cultivator and non-cultivator households in rural households (Tables
12).
Table 12: Percentage Distribution of Cash Dues by Purpose of Loans
Rural Cultivator Households
Rural Non-Cultivator Households
Purpose of Loans
1962 1971 1981 1991 2002 1962 1971 1981 1991 2002
Farm-Business
36.6 49.7 63.8 17.6 52.5 8.7 7.5 14.3 3.1 9.3
Capital Expenditure
26.8 34.7 45.3 14.4 34.3 6.9 5 8.4 2.4 6.3
Current Expenditure
9.8 15 18.5 3.2 18.2 1.8 2.5 5.9 0.7 3
Non-Farm Business
3.5 4.3 7.8 6.2 9.4 20.2 13.7 23.3 13.6 19
Capital Expenditure
1.4 3.2 6.3 4.7 7.4 3.5 8 18.8 9.8 14.2
Current Expenditure
2.1 1.1 1.5 1.5 2 16.7 5.7 4.5 3.8 4.8
Productive Purpose
40.1 54 71.6 23.8 62.9 29 21.2 37.6 16.7 28.5
Non-Productive
60 46 28.4 76.2 38.1 71 78.8 62.4 83.3 71.5
Household Expenditure 49.2 37.8 20 36.1 27.7 63.6 63.4 51 55.2 55
Other Purposes
10.8 7.2 8.4 39.1 10.4 7.3 15.4 11.4 28.1 16.5
Repayment of Debt
5 1.5 0.1
1.5 4.4 4 1.5
1.3
Expenditure on Litigation 1.8 0.7 0.8
0.3 1 1.2 0
0.2
Financial Investment
0.2 0.2 1
0.6 0.1 1 0.5
1
All
100 100 100 100 100 100 100 100 100 100
Source:
See NSSO 59
th
Round (Report No. 501; p.39) and Table 15
Cultivator households obviously have a much higher proportion of debt
earmarked for productive purposes than non-cultivator households. However,
amongst the cultivator households, it is the receding of the share of farm
