Agriculture growth rate in India

Agriculture

No any other sector is so important as agriculture sector in a country like India. Agriculture sector is very important to India in many respects. It provides food and nutritional security, providing employment to largest sections of the community , providing raw materials to the majority of industries and depend large sections for their livelihood , exporting agriculture items and contributes substantial share in the GDP. Agriculture and allied sectors contribute nearly 14.2 percent of the Gross National product of India ,employees 58 percent of the Indian total workforce and provides 10.2 percent of the total exports. India faces a greater challenge, since with only 2.3% share in world’s total land area, it has to ensure food security of its population which is about 17.5% of world population. Indian agriculture has achieved tremendous growth during the last 60 years. GDP of Agriculture and allied sectors was ` 692499 Crores ( at 2004-05 prices) in the year 2010-11 of India has made remarkable progress in agricultural output, productivity and cultivating area since independence. India is the largest producer of milk, fruit, cashew nut, coconut and in tea in the World , second largest producer of wheat, vegetables, sugar and fish and the third largest producer of tobacco and rice.

Declining share of Agriculture in the GNP

————————————————————————–
Year Share of Agriculture in %
————————————————————————–

1950-51 55
1970-71 44
1990-91 31
2000-01 26
2008-09 15.7
2010-11 14.2
————————————————————————
Source: Economic Survey 2010-11 and Indian Economy, Ruddar Datt
and K.P.M Sundharam.

Agriculture Growth rate

The agriculture sector (including allied activities) recorded an average growth of 2.87 per cent against the Plan target of 4 per cent per annum during the first four years of the current Five Year Plan. In 2007-08 the agriculture sector had achieved an impressive growth of 5.8 per cent. Agriculture-sector growth fell into the negative zone of (-) 0.1 per cent in 2008-09, although this was a year of a record 234.47 million tonnes food production. In 2009-10 the growth marginally recovered to 0.4 per cent primarily due to a good rabi crop. The agriculture-sector is expected to grow at 5.4 per cent as per the 2010-11 advance estimates. In order to achieve the Plan target of average 4 per cent per year, the agriculture sector needs to grow at 8.5 per cent during 2011-12. Agriculture growth rate is not steady and uniform due to the monsoon in addition to other factors. The per capita availability of foodgrains has been risen from 350 grms in 1951 to 500 grms in 2008-09. Compare to other nations agriculture productivity and growth rate is less in India.
Year Growth rate in %
1951 –61 3.3
1961 -71 2.2
1971- 81 1.7
1981- 91 3.9
1991- 01 2.8
2001- 07 2.2
2007- 08 5.8
2008- 09 (-)0.1
2009 – 10 0.4
2010 – 11 5.4

Agriculture Growth rate since 1950-51

Source: Economic Survey 2010-11 and Indian Economy, Ruddar Datt

and K.P.M Sundharam.

Agriculture Production in India 2010-11
( Million Tonnes)

Crop 2009-10 2010-11 %Change
in 2010-11
over 2009-10
Rice 89.09 94.01 5.52
Wheat 80.80 81.47 0.83
Coarse Cereals 33.55 40.08 19.46
Pulses 14.66 16.51 12.62
Total Food grains 218.11 232.07 6.40
Oilseeds 24.88 27.85 11.94
Sugarcane 292.30 336.70 15.19
Cotton 24.22 33.93 40.09
Jute and Mesta 11.82 10.08 (-)14.72

From 2005-06 to 2008-09, foodgrains production registered a rising trend and touched a record level of 234.47 million tonnes in 2008-09. The production of Foodgrains declined to 218.11 million tonnes during 2009-10 (final estimates) due to the long spells of drought in various parts of the country in 2009. The productivity of almost all the crops suffered considerably, which led to decline in their production in 2009. As per the second advance estimates released by Ministry of Agriculture on 9.2.2011, production of foodgrains during 2010-11 is estimated at 232.07 million tonnes compared to 218.11 million tonnes last year . This is only marginally below the record production of 234.47 million tonnes of foodgrains in 2008-09. India is likely to achieve record production of wheat (81.47 million tonnes), pulses (16.51 million tonnes) and cotton (33.93 million bales of 170 kg. each) during 2011-12.

——————————————————BOX———————————————-

Agriculture productivity is less in India

Yield rate of Food grains in different countries
( Kg per hectare)

Name of country Rice Wheat
US 7694 2825
China 6265 4455
India 3124 2619
Nigeria 1440 1127

Source: FAO

——————————————————BOX———————————————-

—————————————-Box————————————–
Inter State Variation in Agriculture growth rate

Growth rates of National Domestic Product (NSDP)
from Agriculture

(States Ranked by % of Rainfed Area)

States Growth rate in
NSDP Agriculture
1995-96 to 2004-05
Punjab 2.16
Haryana 1.98
Uttar Pradesh 1.87
Tamil Nadu (-)1.36
West Bengal 2.67
Bihar 3.51
Andhra Pradesh 2.69
Gujarat 0.48
Rajasthan 0.30
Orissa 0.11
Madhya Pradesh (-)0.23
Karnataka 0.03
Maharashtra 0.10
Kerala (-)3.54
Assam 0.95
All-India 1.85

Source: National Accounts Statistics, (State Series) Central Statistical Organization, Ministry of Statistics and Programme Implementation,New Delhi and Planning Commission report on Agriculture

—————————————-Box————————————–

Major crops in India

West Bengal – Highest Rice producing State

Rice is the main grain crop of India. India ranks second in the world in production of rice.
Rice is cultivated in areas having annual average rainfall of 125 cm and average temperature of 23 degree Celsius. During the 1980s the growth in area in rice was marginal at 0.41 per cent but growth in production and yield was above 3 per cent. From 2000-01 to 2009-10 the situation changed with growth in area turning negative and in production and yield standing at 1.59 per cent and 1.61 per cent respectively. Major rice cultivating areas are north east India, eastern and western coastal regions and river basin of Ganga. Rice cultivation is highest in West Bengal. West Bengal, Punjab and Uttar Pradesh are the major rice producing states. Besides, Tamil Nadu, Karnataka, Orissa, Haryana, Bihar, Chhattisgarh, Assam and Maharashtra also produce rice.

Uttar Pradesh – Highest Wheat Producing State

India is the second wheat producing nations of the World. Wheat is the second major crop in India. It is cultivated in the Rabi season. Wheat is cultivated in areas with mean annual rainfall of 75 cm and fertile soil. During 2000-01 to 2009-10 the growth in area in wheat was 1.21 per cent and in production and yield was 1.89 per cent and 0.68 per cent respectively. The highest quantity of wheat in the country is in Uttar Pradesh. 35 % of wheat is produced only in Uttar Pradesh. Punjab is the second largest wheat producing state in the country. Other leading wheat producing states are Madhya Pradesh and Haryana.

Coarse Cereals

In 2009-10 the production of coarse cereals constitute only 15 per cent of the total food grains production of India. The area under coarse cereals has shown a decline over the years whereas their yield has shown significant improvement despite decrease in area in all the major coarse cereals except maize. The growth rate in area of total coarse cereals, in both the periods (1980-81 to 1989-90 and 2000-01 to 2009- 10) was negative reflecting either shift to other crops or relatively dry area remaining fallow. In all the major coarse cereals there was negative growth in area during both the periods except for maize, which recorded a growth rate of 2.98 per cent in the 2000- 01 to 2009-10 period. However, growth in production and yield for coarse grains which was 0.40 per cent and 1.62 per cent respectively in the 1980s improved significantly to 2.46 per cent and 3.97 per cent respectively in the 2000-01 to 2009-10 period . This increase is primarily driven by maize and bajra. Special effort is required to promote production and productivity of all coarse cereals to ensure food security.

Jowar is more in Maharashtra

Jowar is also an important food crop of India. This crop is grown where the climate is hot and dry with 45 cm. Out of the total area under jowar cultivation inIndia , 50% is cultivated in Maharashtra. Whereas out of the total production of Jowar in the nation, 52% is from Maharashtra. Karnataka, Andhra Pradesh, Tamil Nadu also produce jowar.

Madhya Pradesh – Leader in Pulses production

Pulses are the main source of protein for a large section of population in India. Pulses are grown in dry climate region in India. These crops provide nitrogen to the soil. Gram and
Tur are the major contributors to the total production of pulses in the country. The major pulses grown in the country are chickpea, pigeon pea (tur), moong bean, urd bean, field pea, and lentils. Gram and tur are the major contributors to total pulses production in the country. During the 1980s there was negative growth in total area under pulses and growth in production and yield was 1.52 per cent and 1.61 per cent respectively. During 2000-01 to 2009-10, whereas area and production have grown by 1.17 per cent and 2.61 per cent respectively, growth in yield at 1.64 per cent has remained at about the same level reflecting that the growth in production is primarily because of increase in area . Madhya Pradesh is the first in pulses follows by Uttarpradesh in pulses production in India. It produces 24% of the total pulses in the country. It is followed by the states of Uttar Pradesh and Rajasthan.
Area and Production of Pulses
Year Area in
Million Hectares Production in
MT

2006-07 23.19 14.20
2007-08 23.63 14.76
2008-09 22.09 14.57
2009-10 23.16 14.66
2010-11 23.16 16.51

Source: Annual Report 2009-10, Dept. of Agriculture, GOI

Oilseeds

Oilseeds are raised mostly under rain-fed conditions and are important for the livelihood of small and marginal farmers in the arid and semi arid areas of the country. Indian agro-ecological conditions in the country are favourable for growing nine annual oilseeds, which include seven edible oilseeds, i.e., groundnut, rapeseed mustard, soybean, sunflower, sesamum, safflower, and niger, and two non-edible oilseeds
i.e., castor and linseed.

Area and Production of Oilseeds
Year Area in
Million Hectares Production in
MT
2006-07 26.15 24.28
2007-08 26.69 29.75
2008-09 27.55 27.72
2009-10 26.75 24.88
2010-11 26.75 27.85
Source: Annual Report 2009-10, Dept. of Agriculture, GOI

Jute is highest in West Bengal

India is a major producer of jute in the world. West Bengal, Bihar and Orissa are major producer of jute. Uttar Pradesh and Assam also cultivate jute to a small extent. Jute production was 95 Lac bales during the year 2009-10.

Cotton

A significant improvement in yield has resulted in an increase in growth rate of cotton
production from 2.80 per cent during the 1980s to 13.58 per cent per annum during 2000-10.Cotton production is estimated at 223.18 lakh bales during 2009-10 against 222.76 lakh bales during 2008-09. The yield of cotton went up from 307 kg/ha in 2003-04 to 419 kg/ha in 2008-09 (fourth advance estimates). The compound growth rate index of yield increased significantly from – 0.41 per cent during the1990s to 13.64 per cent during 2001 to 2008. However, the growth in index of area moderated but remained positive. The combined effect on the index of production was an increase in growth from 2.29 per cent during the 1990s to 15.48 per cent during 2001-08 pesticides, micronutrients and irrigation. Each of these plays a role in determining yield level and in turn augmentation in the level of production. In order to increase the production and productivity of cotton, a centrally sponsored scheme of Mini Mission-II of the Technology Mission on Cotton is under implementation in 13 States, i.e., Andhra Pradesh, Gujarat, Haryana, Karnataka, Madhya Pradesh, Maharashtra, Orissa, Punjab, Rajasthan, Tamil Nadu, Uttar Pradesh, West Bengal, and Tripura

Karnataka – highest Coffee producing state
India ranks sixth in coffee production after Brazil, Vietnam, Columbia, Indonesia, and Ethiopia. Coffee cultivation was started in India in the year of 1830 in Karnaka by the Britishers. It produces both Arabica and Robusta varieties of coffee in a proportion of 33:67. Coffee is cultivated in about 3.99 lakh ha mainly confined to the southern States of Karnataka, Kerala, and Tamil Nadu, which form the traditional coffee tracts. To a lesser extent, coffee is also grown in non-traditional areas like Andhra Pradesh, Orissa, and the north-eastern States, the main emphasis being tribal development and afforestation. Coffee is predominantly an export oriented commodity in India with 65 to 70 per cent of the production being exported, thereby earning considerable foreign exchange. For the past five to six years, the productivity in India has been around 800 kg/ha. The production of coffee stood at 2,89,600 MT in 2009-10. For the year 2010-11, the post monsoon crop estimate is placed at 2,99,000 MT. Karnataka and Kerala are the major produces of Coffee in India. Production has been from 1,88,93 MT in 1950-51 to 3,08,000 MT in 2010-11

Coffee production in India

Year Ares in Hectares Production in
MT
1950 – 51 92523 18893
1960-61 120320 68169
1970-71 135463 110231
1980-81 208269 118646
1990-91 270821 169726
2000-01 346716 301200
2006-07 381085 288000
2007-08 388195 262000
2008-09 394352 262300
2009-10 399683 289600
2010-11 399801 299000

Kerala – leader in Rubber production

India is the fourth largest producer of natural rubber (NR) with a share of 8.5 per cent in world production in 2009. Rubber is produced from latex that secrets through the trunks of the trees. Hot, humid climate with well drained soil is suitable for rubber cultivation. Rubber is planted in the states of Kerala, Karnataka and Tamil Nadu. Kerala state has highest production of rubber. More than 90 percent of the rubber is being produced by Kerala. The projected production and consumption of Natural Rubber (NR) for the year 2010-11 are 893,000 tonnes at a growth of 7.4% and 978,000 tonnes at 5.0% growth respectively. The projected import and export for the year 2010-11 are 70,000 tonnes and 50,000 tonnes respectively. Production of Natural Rubber (NR) in the country during 2009-10 was 831,400 tonnes compared to 864,500 tonnes during 2008-09 registering a negative growth of 3.8%. Productivity also declined to 1784 kg/ha during 2009-10 from 1867 kg/ha during 2008-09. The production of NR in 2010-11 is projected at 851,000 tonnes, which is an increase of 2.4 per cent over 2009-10.

Sugarcane

The compound growth rate of area, production, and yield of sugarcane during 2000-01 to 2009-10 has declined compared to the 1980s. The decline in growth rate of yield during this period is because of relatively higher decline in growth rate of production compared to decline in growth rate of area . Concerted effort is required to increase yield rate of this crop to avoid fluctuations in production and spikes in price of sugar. The production of sugarcane during 2010-11 is estimated at 324.91 million tones (1st Advance Estimates) against 277.75 million tonnes achieved during 2009-10.

Tea
India is the largest producer and consumer of black tea in the world. Cultivation of Tea started India in the year of 1823. Tea is grown in 16 States inIndia. Assam, West Bengal, Tamil Nadu and Kerala account for about 96 per cent of the total production. The teas originating from Darjeeling, Assam, and the Nilgiris are well known for their distinctive flavours the world over. More than fifty percent of the tea is being produced in Assam. Tea production in India during the year 2009-10 has been estimated at 991.18 million kg against 972.77 million kg achieved in 2008-09.

Tea production in India

Year Production in
Million Kgs.
2002-03 845.97
2003-04 878.65
2004-05 906.84
2005-06 948.94
2006-07 973.07
2007-08 987.02
2008-09 972.77
2009-10 991.18
Source: Tea Board and Economic Survey, 2010

Coconut
India is the third largest coconut producing country having an area of about 1.90 million hectares under the crop. Annual production is about 1014 million nuts with an average of 5231 nuts per hectare. The major coconut growing states are kerala, Tamilnadu, Karnataka, A.P, West Bengal, Maharashtra, Orissa, Assam, Goa, Daman andDiu, Lakshadeep, Gujarat. Kerala tops in production accounting 39 percent of total production in the country. Kerala is the largest producer of coconuts in India producing 6050 Million Nuts followed by Tamilnadu (5430 Million Nuts), Karnataka (1630 Million Nuts), and Andhra Pradesh (1330 Million Nuts) as they have taken 2nd, 3rd and 4th position respectively. Central Kerala town Kochi is a major trading center for coconut oil and copra. Giving focus on productivity, Tamil Nadu comes in 1st position (14495 Nuts/ha.), West Bengal in 2nd position (14307 Nuts/ha.) and Andhra Pradesh in 3 rd position (12629 Nuts/ha.). Kerala being a major coconut producing state its productivity is not so high (6951 Nuts/ha.).
Kerala has the largest area under Coconut in India at .87 million hectares covering 45% of the total area under Coconut in India. Karnataka and Tamil Nadu follow closely covering a combined area of another 40%. This is due to the long coastline in these states which is suitable for growing coconut palm trees.

All India Area, Production and yield of Coconut
( Area in Million Hectares, Production in ‘00Million nuts and yield Nuts/Hectare)
Year Area Production Yield
2000-01 1.84 125.97 6847
2001-02 1.93 129.63 6709
2002-03 1.92 125.35 6337
2003-04 1.93 121.78 6310
2004-05 1.94 128.33 6615
2005-06 1.95 148.11 7608
2006-07 1.94 158.40 8179
2007-08 1.90 147.44 7747
2008-09 1.90 101.48 5231

Pepper

All-India Area, Production and Yield of
Pepper.

Area – ’000 Hectares
Production – ’000 Tonnes
Yield – Kg/Hectare Area Production Yield Yield
4
Pepper
1997-98 181.5 57.3 316
1998-99 239.8 75.7 316
1999-00 195.6 59.0 302
2000-01 213.9 63.7 298
2001-02 219.4 62.4 285
2002-03 224.4 71.7 320
2003-04 233.4 73.2 314
2004-05 228.3 73.0 320
2005-06 260.2 92.9 357
2006-07 246.0 69.0 281
2007-08 197.0 47.1 239
2008-09 238.7 47.4 199
Source : Directorate of Economics and Statistics for data till 2007-08 and
National Horticulture Board M/o Agriculture for 2008-09.

Cardamom
Cardamom is known as the “Queen of Spices”. India was the leader in cardamom production till 2000. In 2007-08 India’s cardamom production was 10,000 MT. Kerala is the top cardamom producing state in India. Kerala produces 70 % , Karnataka produces 20 % and Tamilnadu produces remaining 10 % of the total production. India consumes 90 % of production. Cardamom is exporting to Saudi Arabia, Japan, Malaysia, United Kingdom and Kuwait.
All-India Area, Production and Yield of
Cardamom
Area – ’000 Hectares
Production – ’000 Tonnes
Yield – Kg/Hectare
Year Area Production Yield
1 2 3 4
Cardamom
1997-98 94.3 11.7 123
1998-99 85.0 9.0 106
1999-00 84.8 10.7 126
2000-01 92.4 14.5 157
2001-02 91.6 15.2 166
2002-03 88.5 15.4 174
2003-04 95.6 16.7 175
2004-05 95.2 16.9 178
2005-06 95.8 17.8 186
2006-07 98.2 15.7 160
2007-08 81.8 13.4 164
2008-09 92.0 15.5 168

Groundnut
Western state of Gujarat and southern Andhra Pradesh are the top two groundnut producers of India and initial sowing reports from the states show a drop in area.

Sweet Potato, Tapioca and Sunhemp

All-India Area, Production and Yield of
Sweet Potato,Tapioca and Sunhemp.

Area – ’000 Hectares
Production – ’000 Tonnes
Yield – Kg/Hectare
Year Area Production Yield
Sweet Potato
2002-03 104.2 956.2 9177
2003-04 106.4 937.8 8814
2004-05 107.2 932.5 8699
2005-06 106.8 955.1 8943
2006-07 106.6 963.7 9040
2007-08 106.0 942.6 8892
2008-09 124.0 1120.0 9032
Tapioca
2002-03 189.8 4827.6 25435
2003-04 219.0 5945.3 27147
2004-05 229.4 5854.8 25522
2005-06 242.4 7620.2 31436
2006-07 256.4 8429.0 32871
2007-08 253.5 8722.4 34415
2008-09 280.0 9623.0 34368
Sunhemp
2002-03 45.9 18.2 397
2003-04 37.0 24.3 657
2004-05 35.4 25.1 709
2005-06 34.1 24.7 724
2006-07 33.2 19.6 590
2007-08 31.5 18.8 597
2008-09 27.6 16.4 595
Source : Directorate of Economics and Statistics for data till 2007-08 and
National Horticulture Board M/o Agriculture for 2008-09.

Turmeric, Chillies and Coriander

All-India Area, Production and Yield of Turmeric, Chillies and Coriander.

Area – ’000 Hectares
Production – ’000 Tonnes
Yield – Kg/Hectare
Year Area Production Yield

Turmeric
2002-03 150.1 522.2 3479
2003-04 150.1 564.9 3763
2004-05 158.7 718.1 4525
2005-06 172.0 851.7 4952
2006-07 178.5 786.8 4408
2007-08 175.3 794.4 4532
2008-09 181.1 821.2 4535
Chillies
2002-03 827.4 894.6 1081
2003-04 774.3 1235.7 1596
2004-05 737.5 1185.5 1607
2005-06 654.0 1014.6 1551
2006-07 763.2 1242.1 1627
2007-08 805.8 1297.9 1611
2008-09 779.1 1269.9 1630
Coriander
2002-03 285.8 174.0 609
2003-04 483.5 389.8 806
2004-05 348.9 248.0 711
2005-06 340.4 223.4 656
2006-07 320.8 233.2 727
2007-08 384.2 309.6 806
2008-09 396.9 242.1 610
Source : Directorate of Economics and Statistics for data till 2007-08 and
National Horticulture Board M/o Agriculture for 2008-09.

——————————————— Box ———————————————
Crops and major producing states

Crops States
Bajra (millets) Maharashtra, Tamil Nadu, Punjab, Andhra Pradesh and Rajasthan
Barley U.P., Bihar, Haryana
Betelnuts
West Bengal and South India.
Cardamom Kerala , Karnataka and Tamil Nadu
Cashewnut Kerala

Chillies West Bengal, , Tamil Nadu and Maharashtra
Coffee Karnataka, Tamil Nadu (Nilgiri Hills) and Kerala

Cotton: Gujarat, Madhya Pradesh, Tamil Nadu, Punjab and Maharashtra
Gram and Pulses: U.P., Madhya Pradesh, Haryana, Punjab, Maharashtra and Karnataka
Groundnut:. Gujarat, Madhya Pradesh and Andhra Pradesh
Hemp:. Maharashtra, Madhya Pradesh and U.P
Jute: Assam, West Bengal, Bihar and Orissa

Linseed: Madhya Pradesh, Bihar, Orissa, U.P., Maharashtra and West Bengal.

Maize: U.P., Bihar and the Punjab.
Mustard and Rape-seed (Sarson): U.P., West Bengal, Punjab, Bihar and Orissa.

Poppy (opium plant): U.P., Madhya Pradesh, Punjab, Himachal Pradesh, Jammu and Kashmir.

Pepper Kerala and West Bengal
Rice Andhra Pradesh, West Bengal, Madhya Pradesh, Bihar, Tamil Nadu and Orissa
Rubber: Kerala, Tamil Nadu, Karnataka
Saffron: Jammu and Kashmir
Silk: Karnataka, Jammu & Kashmir, West Bengal and Assam

Sugarcane: U.P., Bihar, West Bengal, Punjab and Maharashtra
Tea:
Assam, West Bengal, Kerala and Tamil Nadu (Nilgiri Hills), Uttarkhand (Dehradun) and Himachal Pradesh (Kangra Hills).

Tobacco: Andhra Pradesh, Bihar, U.P., West Bengal, Maharashtra, Tamil Nadu and Karnataka
Wheat U.P., Punjab, Haryana and Madhya Pradesh. To some extent in Bihar, Rajasthan and Maharashtra

——————————————— Box ———————————————

————————————————BOX———————————————-
Operational holdings size declining

According to agriculture Census 2005-06 on number and area of operational holdings published in 2010-11 the total number of operational holdings in the country has increased from 120 million in 2000-01 to 129 million in 2005- 06 and operated area has decreased from 159.44 million ha. in 2000-01 to 158.32 million ha. in 2005-06. The average size of the operational holding has declined to 1.23 ha. in 2005-06 as compared to 1.33 ha. in 2000-01 at All India level. The number of female operational holders has increased from 10.83 percent in 2000-01 to 11.70 percent in 2005-06 with corresponding figures of 8.39 percent and 9.33 percent in the operated area. Small and marginal holdings (below 2.00 ha.) taken together constituted 83.29 percent of the total number of holdings in 2005-06 against 81.80 in 2000-01 with operated area of 41.14 percent 2005-06 as against 38.86 percent in 2000-01. Semi-medium and medium operational holdings (2.00 ha. – 10.00 ha.) in 2005- 06 were 15.86 percent of the total number of holdings with operated area of 47.04 percent. Large holdings (10.00 ha. & above) were 0.85 percent of total number of holdings in 2005-06 with share of 11.82 percent in the operated area as against 1.03 percent and 13.21 percent respectively in 2000-01 Agriculture Census.

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