Agriculture Writeup
Agriculture Writeup
Agriculture Writeup
AGRICULTURE
8.1 Background: With the growth of Indian economy the share of Agriculture in GDP
has declined over the years and even today productivity of some agricultural products is
lower compared to countries like USA & China. The growth in Indian agricultural sector
has had its moments of glory, nonetheless. Green Revolution (Pioneering work by
agriculture scientists and the efforts of farmers, popularly known as the “Green
Revolution', had helped achieve a breakthrough in the agriculture sector in the 1960 )
has been the major success story of free India. The nation that was frequently plagued
by famines and chronic food shortage before green revolution, today faces surplus.
From a food grain production around 55 million tons at the time of independence, we
now boost of production of about 260 million tons of food grain (2012-13). Unlike
developed nations, agriculture still remains the backbone of our country.
8.2 Significance of Agriculture Sector: The Agriculture Sector occupies centre stage
in Indian economy embodying three thrust areas as (1) to promote inclusive growth, (2)
to enhance rural income, and (3) to sustain food security. It accounts for nearly 14% of
GDP, about 13 % of exports and supports half of the country’s population as its principal
source of income (58% of workforce). As per Census 2011, the total number of
agricultural cultivators and agricultural laborers increased from 234.1 million in 2001 to
263.o million in 2011. The share of agri-exports in total exports increased from 12.81%
in 2011-12 to 13.08% ( Rs 231,992 Cr) in 2012-13, a record level.
8.3 Historical Growth Trends in Agriculture 1 : Indian agriculture has witnessed wide
variations in growth performance during a span of six decades after independence. The
variability was particularly pronounced due to the subsistence nature of farming in India
and the sector’s heavy dependence on monsoon and other climatic parameters. In the
initial years after the inception of planned development, it was the green revolution
technologies that fired up growth in the sector for nearly three decades. The impact of
green revolution tapered off gradually towards the later years of the last century.
Economic reforms initiated in early nineties had a significant impact on agricultural
sector, primarily due to the opening up of economy to external competition, liberalization
of trade and deregulation of input and other sub-sectors. (to overcome difficulties in
identifying structural breaks or secular acceleration etc due to inter year fluctuations and
to capture the effects of major changes in technologies and policies on the sector in
various phases, an analysis based on decadal trend growth rates was carried out 1 .
The GDP-Agriculture series (1950-51 to 2010-11) was first smoothened by taking 2-
year moving averages to remove the effects of abrupt weather variations and other
shocks. Further, trend growth rates were estimated by fitting semi-log trend to the
smoothened data) .Five distinct phases of growth were identified:
(i) Phase I: Pre-green revolution Period (1950-51 to 1967-68)
(ii) Phase II: Early green revolution period (1968-69 to 1985-86)
(iii) Phase III: Period of wider dissemination (1986-87 to 1996-97)
(iv) Phase IV: Post-Reform Period (1997-98 to 2005-06)
(v) Phase V: Period of Recovery (2006-07 to 2009-10/2010-11)
1 : Historical and Spatial Trends in Agriculture: Growth Analysis at National and State level in India- Ramesh Chand and
Shinoj Parappurathu ,National Centre for Agricultural Economics and Policy Research, New Delhi.
8.4 The pre-green revolution period (1950-51 to 1967-68) was characterized by steep
decline in growth in GDP agriculture, with decadal growth rates found to plummet
sharply from 2.78 per cent to 1.06 per cent between the period 1950-51 and 1967-68.
The green revolution was kick-started from the year 1966 and the effects of adoption of
superior technology and institutional reforms were found to manifest from 1968-69
onwards. The subsequent period is classified as early green revolution period and a
visible reversal of growth in GDP agriculture was observed. The decadal growth rate
reached near 3 per cent by the decade ending with 1985-86. The period of wider
dissemination of technology was characterized by sustained growth in the sector for
over a decade peaking at the year 1996-97. The deceleration of growth was started
from 1997-98 onwards and a clear indication of slumping of the agricultural sector was
visible till the year 2005-06. This slump is widely perceived as an outcome of substantial
diversion of resources away from agriculture to other sectors of the economy. However,
a significant recovery of growth was observed in the last few years that has pushed the
decadal growth rates above 3 per cent. In nutshell, the growth series reflects sharp
deceleration of the agricultural sector in the post-reforms period and an unambiguous
turnaround in the last five years, which also happens to be the 11th five year plan
period.
( Different studies have categroized the phases of growth slightly differently e.g. another
study by Elumalai Kannan and Sujata Sundaram, Institute for Social & Economic
Change (ISEC) titled “Analysis of Trends in India’s Agricultural Growth “ Working paper
276 categorizes the phases as : early green revolution (1967-68 to 1979-80), mature
green revolution (1980-81 to 1989-90), early economic reforms (1990-91 to 1999-
00) & economic reforms (2000-01 to 2007-08). The study uses three years average of
different variables to even out the inter-year fluctuation(in contrast to two year averages
used above) The Paper may be seen at http://www.isec.ac.in.)
8.11 As per Final Estimates for 2012-13, total production of rice in the country is
estimated at 105.24 million tonnes which is lower by 0.06 million tonnes than record
production of rice during 2011-12. Production of wheat estimated at 93.51 million tonnes
is lower than its record production of 94.88 million tonnes during 2011-12. The
production of Coarse Cereals is estimated at 40.04 million tonnes which is lower than
the production of Coarse Cereals during 2011-12. Total food grains production
estimated at 257.13 million tonnes is lower by 2.16 million tonnes than the record
production of 259.32 million tonnes achieved during 2011-12.However, total production
of pulses and oilseeds estimated at 18.34 million tonnes and 30.94 million tonnes
respectively are higher than their production levels during 2011-12. Production of
sugarcane estimated at 341.20 million tonnes is lower by 19.83 million tonnes than its
record production of 361.04 million tonnes during 2011-12. Production of cotton is
estimated at 34.22 million bales (of 170 kg each) which is marginally lower than its
production of 35.20 million bales during 2011-12. .
All India Average Annual Growth Rates of Area, Production and Yield of Principal
Crops
Crops Average Annual Growth (%) Average Annual Growth (%)
10th Plan (2002-03 to 2006-07) 11th Plan (2007-08 to 2011-12)
Area Production Yield Area Production Yield
Rice -0.39 1.25 1.17 0.18 2.69 2.41
Wheat 1.30 1.11 -0.32 1.31 4.64 3.29
Coarse Cereals -0.26 2.55 1.75 -1.59 5.68 7.27
Total Cereals 0.07 1.21 0.74 -0.03 3.79 3.76
Total Pulses 1.31 2.66 0.65 1.36 4.28 2.78
Sugarcane 3.98 4.90 0.66 0.04 0.99 0.87
Groundnut -1.65 3.61 4.32 -0.86 15.82 13.91
Total Nine
3.55 7.99 3.53 -0.07 5.54 5.32
Oilseeds
Cotton 0.57 20.01 19.40 5.97 10.46 3.93
Government Initiatives :
8.14 Acknowledging the importance of growth in agriculture , the outlay for agriculture
& allied activities has been increased from 4.4 per cent ( realized, Rs 163105 Cr at
current prices) during eleventh Plan (2007-12 )to 4.7 per cent (projected, Rs 363273 Cr
at current prices ) in twelfth plan (2012-17). The schemes in vogue during eleventh Plan
have been suitably modified/strengthened .
8.15 Agricultural Credit : The target of doubling of the flow of agricultural credit in
three years with base year as 2004-05 was achieved in two years. Agricultural credit
flow has increased consistently and it reached Rs. 5,11,029 crore during 2011-12
forming 108% of the target and in 2012-13 at Rs.6,07,375 crore (provisional)against
target of Rs.5,75,000 crore forming 106% of the target. Against the target Rs.7,00,000
crore during 2013-14, achievement is Rs.4,33,341 crore upto 31st December, 2013.
8.16 Rashtriya Krishi Vikas Yojana (RKVY): Rashtriya Krishi Vikas Yojana (RKVY)
was launched in the XIth Plan against a backdrop of faltering agriculture growth in the
previous decades. It was designed as a State Plan Scheme with complete flexibility to
the States to choose projects specifically tailored to their conditions for generating
growth in agriculture and allied sectors. In the XI Five year Plan, Rs 27447 crores were
sanctioned under RKVY for taking up 5768 projects across various sectors. In the XII
Plan, the entire RKVY budget is proposed to be divided in three streams viz. Production
Growth, Infrastructure & Assets, and Special schemes of national importance in the
ratio of 40:40:20. RKVY model has received tremendous response from the States and
for the XII Plan period, an allocation of Rs.63246 crore has been made for RKVY which
is nearly 50% of the total allocation of Department of Agriculture.
8.22 A range of area specific and crop specific interventions to boost productivity have
been introduced by the government . Some of them are listed as under:
8.23 Challenges: The declining land-base for agricultural operations, diminishing water
tables, shortage of farm-labour, increasing costs of inputs and uncertainties associated
with prices/realisation which impact the viability of farming are some of the formidable
challenges the agriculture sector faces. Resource use efficiency to improve factor
productivity and ensuring natural resources sustainability are necessary to reconcile the
conflicting demands of farmers and consumer. While the country is presently self-
sufficient in cereals, it meets its domestic requirements for pulses and edible oils
through imports. The working group for the 12th Five Year Plan has also projected that
the deficit between the domestic demand and supply in the cases of pulses and edible
oils would continue even by the end of the 12th Plan. Despite the various efforts being
made, there is no technological breakthrough in pulses, the yields are still hovering
around 600-700 Kg per hectare. Pulses continue to be grown by small and marginal
farmers on marginal lands under rainfed conditions. Even though substantial increases
have been made in the MSP, due to weak procurement/price support mechanism,
farmers’ response in terms of increase in acreage under pulses is lukewarm. Nearly half
of our domestic requirement of edible oils is met through imports. Developing oil palm,
which have high oil contents, on large track of lands suitable for its cultivation, can
bridge the gap between demand and supply of edible oils.
8.24 Leaving aside the lower productivity of some crops as compared to others, the
agricultural productivity in India in general is lower than some other countries like USA &
China and it is even below the world average in some cases.
Data Source :
8.26 Directorate of Economics & Statistics (DES) in the Department of Agriculture
& Cooperation, Ministry of Agriculture brings out various publications like State of
Indian Agriculture, Agriculture Statistics at a Glance, Agricultural Prices in India, Land
Use Statistics at a Glance, Agricultural wages in India, Cost of cultivation of Principal
Crops etc. The website of the directorate (http://eands.dacnet.nic.in) hosts a lot of cross
sectional & time series data on variety of items. However, the agriculture statistics
system in India is a decentralized one where the State Governments – State
Agricultural Statistics Authorities (SASAs) to be more specific, play a major role in
collection and compilation of agriculture statistics at the State level & DES, M/0
Agriculture is the pivotal agency for such a compilation at All India Level. The other data
gathering agencies involved are National Sample Survey Office (NSSO )& State
DESs.The estimate of crop production are based on area through field estimation and
yield rate through crop cutting experiments.
8.27 Crop Area Statistics : From the point of view of crop area statistics, the States
and Union Territories can be classified into three broad groups:
(a) States and Union Territories (18 in number) which have been cadastrally
surveyed and where area and land use statistics form a part of the land records
maintained by the revenue agency (referred to as “temporarily settled States”)
(b) Kerala, Orissa and West Bengal known as “permanently settled” States,
where there is no land revenue agency at the village level and crop area and
land use statistics are collected through a scheme of sample surveys.
(c) Part of Assam (hill districts), Arunachal Pradesh, Manipur, Meghalaya, Mizoram,
Nagaland, Sikkim and Tripura, and the two Union Territories of Andaman and
Nicobar Islands and Lakshadweep, for which only “conventional” estimates are
available.
8.28 Statistics of crop area are compiled with the help of the village revenue agency
(commonly known as patwari agency) in the temporarily settled parts of the country
and by specially appointed field staff in the permanently settled States under a
scheme known as “Establishment of an Agency for Reporting Agricultural
Statistics (EARAS)”. Conventional crop estimates for the states in third category
are based on personal assessment of the village chowkidars. The three categories
of States and Union Territories account for eighty-six, nine and five per cent,
respectively of the total reporting area whereas about 7 per cent of total
geographical area is not reported upon.
8.29 In the States that have a patwari agency, a complete enumeration of all fields
(survey numbers) called girdawari is made in every village during each crop season
to compile land use, irrigation and crop area statistics. In the States covered by
EARAS, the girdawari is limited to a random sample of 20 per cent villages of the
State, which are selected in such a way that during a period of five years, the entire
State is covered. However in view of increasing range of functions assigned to
patwaris in temporary settled states , in order to improve the timeliness and quality
of crop area statistics, two schemes are in operation since early seventies namely,
the Timely Reporting Scheme (TRS) and the scheme for Improvement of Crop
Statistics (ICS). Under the TRS, the patwari is required to complete
the girdawari on a priority basis in a 20 per cent random sample of villages ( in such
a way that the entire temporarily settled parts of the country are covered over a
period of five years) and to submit the village crop statements to higher authorities
by a stipulated date for the preparation of advance estimates of the area under
major crops. Under the ICS scheme, an independent agency of supervisors carries
out a physical verification of the patwari’s girdawari in a sub-sample of the TRS
sample villages & in a sub-sample of EARAS sample villages. The National Sample
Survey Organisation is responsible for the planning and operations of the ICS and
employs full-time staff for field supervision. It shares the fieldwork with the
designated State agencies, which carry out the field supervision in about half the
number of sample villages.
8.31 Classification of Land: Data are taken from latest Forestry Statistics Publication,
Agriculture Census or are estimated based on latest available year data received from
the States/Uts respectively.
• Area under Crops: The figures related to Total Cropped Area are either estimated
based on the latest available data received from States/UTs or are based on
advance/forecast estimates received from the States/UTs.
• Gross Cropped Area: This represents the total area sown once and/or more than
once in a particular year, i.e. the area is counted as many times as there are sowings
in year. This total area is also known as total cropped area or total area sown.
• Area Sown more than once: This represents the areas on which crops cultivated
more than once during the agricultural year. This is obtained by deducting Net Area
Sown from Gross Cropped Area.
• Irrigated Area: The figures used in this chapter related to irrigate area are either
estimated based on the data for the latest available year received from the
States/UTs or are estimated/taken from Agriculture Census. The area is assumed to
be irrigated for cultivation through such sources as canals (Govt. & Private), tanks,
tube-wells, other wells and other sources. It is divided into two categories as (a) Net
Irrigated Area: It is the area irrigated through any source once in a year for a
particular crop. (b) Total Net Un-irrigated Area: It is the area arrived at by deducting
the net irrigated area from net sown area.
• Gross Irrigated Area: It is the total area under crops, irrigated once and/or more
than once in a year. It is counted as many times as the number of times the areas are
cropped and irrigated in a year
• Total/Gross Un-Irrigated Area: It is the area arrived at by deducting the gross
irrigated area from the gross sown area.
• Average Yield of Crops: Average yields per hectare of principal crops have been
obtained by dividing the total production by the corresponding total area under each
crop. All India and State average yield per hectare has generally been calculated on
the basis of area and production figures rounded up to hundreds . In the case of tea,
rubber and minor crops, average yield has been calculated on the basis of area and
production figures upto the unit place. In the case of coffee, yields per hectare relate
to sowing or plucked area and in the case of rubber to tapped area.
References :