1. To study the regional disparities in income of agricultural households from various
sources
2. To find out overall income inequality of agricultural households
3. To assess the share of individual income source to total income inequality

Methodology:
Data:
Secondary data pertaining to income from various sources viz. cultivation, livestock, wages & salary and non-farm business sourced from 77th round Land and Livestock Holdings of Households and Situation Assessment of Agricultural Households (January – December 2019) and 70th round situation assessment survey of agricultural house holds of the National Sample Survey Office, Ministry of Statistics and Programme Implementation (MOSPI), Government of India (GoI). The survey has been conducted in two visits V1 (January -August 2019) and V2 (September- December 2019) and canvassed 2128 and 2077 agricultural households in Gujarat in two visits respectively. An agricultural household was defined as that which received an income of more than INR 4000 from agricultural activities and had at least one member self-employed in agriculture, either in the principal status or in subsidiary status during the last 365 days.
Analytical tools:
1. In order to fulfil first objective, the four major sources of income in the state viz. cultivation, livestock, wages & salary and non-farm business are identified. Cross tabulation will be made in order to study the regional and district wise disparities in the income. In order to carry regional analysis, five NSS regions of Gujarat viz. South Eastern, Plains Northern, Dry areas, Kachchh and Saurastra will be taken into consideration.
2. Gini coefficient and Palma ratio will be calculated to find out overall income inequality among agricultural households‘ region and district wise. The Gini coefficient is a single number that demonstrates a degree of inequality in a distribution of income. he Gini coefficient is the cumulative shortfall from equal share of the total income up to each percentile. That summed shortfall is then divided by the value it would have in the case of complete equality. The Palma ratio is the ratio of the top 10% of the population‘s share of income divided by the poorest 40%‘s share. 3. Third objective of the study of assessment of the share of individual income source to total income inequality will be achieved by using the source decomposition of the Gini coefficient.Decomposition of the Gini coefficient shows the share of inequality of individual source to total inequality and the marginal effect of individual income source of income to total inequality level. Following Lerman and Yitzhaki (1985) the Gini coefficient for total income inequality, G, will be computed as follows:
????= ????????????????????????????????=1 (1)
where Skrepresents the share of source k in total income and reflects how important the income source is with respect to total income; Gkis the source Gini corresponding to the distribution of income from source k indicating equality/inequality of income distribution from a given income source and Rkis the Gini correlation of income from source k with the distribution of total income indicating how a given income source is correlated to the total income of a household. In eq. 1 ????????=???????????? (2) ????????=2???????????? ????????,???????? ???????? (3) ????????=???????????? ????????,???? ???????????? ????????,???????? (4)
Where mkis the mean income from income source k, Cov(Yk, Fk) is the covariance between income component k and its cumulative distribution and Cov(Yk, F) is the covariance between income component k and cumulative distribution of total income. The share of income inequality of the income component (Si) can be described as, ????????=???????????????????????????? (5)

From Equation 1 the partial differentiation of the overall Gini coefficient with respect to percentage change (????)in the source of income k can be computed by the following equation. ????????????????????=???????? ????????????????−???? (6)
Then, the marginal effect of the income source relative to the overall Gini can be obtained by dividing eq. (6) by overall Gini coefficient (G) as follows ???????????????????? ????=????????????????????????????−????????=????????−???????? (7)
Theil index is also important tool which has wide applicability in measurement of inequality. The key advantage of Theil index is that, unlike the Gini coefficient, the total amount of inequality measured by it can be decomposed into two additive components of between-group and within-group inequality as ????= ???????????? ????????=1 ???? ???????? ???????? ???? ???????? + ???????????????? ???????? ????????????????=1 (8)
where m equals the number of groups (regions in our case), N and Nm the total number of households and the number of households in group m respectively, Ym the monthly income of a household in group m and Y is the mean income of all households. The first and second terms in the eq. (8) represents between-group and within-group inequality respectively.