|
Introduction
India has made lot of progress in agriculture
since independence in terms of growth in output,
yields and area under many crops. It has gone
through a green revolution, a white revolution,
a yellow revolution and a blue revolution. Today,
India is the largest producer of milk, fruits,
cashew nuts, coconuts and tea in the world, the
second largest producer of wheat, vegetables,
sugar and fish and the third largest producer
of tobacco and rice. The per capita availability
of food grains has risen in the country from 350
gm in 1951 to near about 400 gm per day now, of
milk from less than 125 gm to 226 gm per day and
of eggs from 5 to 30 per annum despite the increase
in population from 35 crores to 95 crores. At
present only 2330 per cent of the farmers are
able to derive any benefits of extension services
provided by various government agencies and every
year about 20 per cent of the crop is lost due
to mishandling, spillage, floods, droughts and
pests and diseases. In fruits and vegetables the
loss is around 30 per cent.
Outlook
Agriculture accounts for 22 per
cent of the GDP and provides livelihoods to 58
per cent of the country's population. Over the
years, the agriculture sector has not received
as much attention as other sectors in services
and manufacturing. The emerging areas in agriculture
like horticulture, floriculture, organic farming,
genetic engineering, food processing branding
and packaging have high potentials of growth.
Development of rural infrastructure, rural extension
services, agro-based and food processing industries
are essential for generating employment and reducing
poverty.
Indian agriculture suffers from
a mismatch between food crops and cash crops,
low yields per hectare except for wheat, volatility
in production and wide disparities of productivity
over regions and crops. Domestic production of
pulses and oilseeds are still below the domestic
requirements and India imports pulses and edible
oils to satisfy domestic demand. India is the
second largest producer of rice and wheat in the
world, first in pulses production and fourth in
coarse grains. A distinct bias in agricultural
price support policies in favour of rice and wheat
has distorted cropping pattern and input usage.
Market for farm output continues to be subject
to heavy procurement interventions. A shift from
minimum support price system and developing alternative
product markets are essential fro crop diversification
and broad based agricultural development.
In recent years there has been
considerable emphasis on the development of horticulture
and floriculture through the creation of critical
infrastructure for cold storage, refrigerated
transportation, processing, packaging and quality
control. India is the largest producer of coconut,
cashew nuts, ginger, turmeric and black pepper
and the second largest producer of groundnut,
fruits and vegetables. India accounts for 10 per
cent of the world fruit production with first
rank in the production of banana, sapota and acid
lime. India is also the largest producer of milk,
the fifth largest producer of egg and the seventh
largest producer of egg and the seventh largest
producer of meat. It is necessary to improve cold
storage and transportation facilities and develop
efficient marketing and export networks to optimize
the production and export potentialities in respect
of these products.
Food management is inefficient
with unsustainable level of food subsidies imposing
heavy burden on Government finance. The rural
economy and the private sector lack the basic
infrastructure to build up sufficient buffer stocks
and the country remains vulnerable to weather
shocks. In recent years, the Central Government
has provided various fiscal incentives for improving
rural storage facilities. The Central Government
is also providing financial assistance to the
State Governments for procurement and distribution
of food grains at subsidized rates, particularly
to the families below the poverty line.
The enhanced availability of
bank credits through priority lending to agriculture
and agro based industries, favorable terms of
trade, liberalized domestic and external trade
for agricultural products attracted private investment
in agriculture in recent years. It is likely that
with the appropriate policy initiatives, this
process will accelerate in the future.
Crop
Prospects 2003-04
Favourable monsoon helped in attaining a substantial
increase in food grains production from 174.2
million tonnes in 2003-04, due to an increase
in the production of both cereals and pulses (Table
1). There was also a significant increase in the
production of oilseeds and cotton in 2003-04 (Table
2). However, production of sugarcane experienced
a fall for the second year in succession, mainly
because of drought affecting the crop in the major
producing areas of south Madhya Maharashtra and
Karnataka (Table 2)
|
Table
1: Food Grains Production (Million tonnes)
|
|
Crop/Year
|
1996-97
|
1997-98
|
1998-99
|
1999-2000
|
2000-01
|
2001-02
|
2002-03
|
2003-04*
|
|
Rice
|
81.7
|
82.5
|
86.1
|
89.7
|
85.0
|
93.3
|
72.7
|
86.4
|
|
Wheat
|
69.4
|
66.4
|
71.3
|
76.4
|
69.7
|
72.8
|
65.1
|
72.7
|
|
Coarse
Cereals
|
34.1
|
30.4
|
31.3
|
30.3
|
31.1
|
33.4
|
25.3
|
36.8
|
|
Pulses
|
14.2
|
13.0
|
14.9
|
13.4
|
11.1
|
13.4
|
11.1
|
14.9
|
|
Food
grains
|
|
Kharif
|
103.9
|
101.6
|
102.9
|
105.5
|
102.1
|
112.1
|
87.8
|
110.5
|
|
Rabi
|
95.5
|
90.7
|
100.7
|
104.3
|
94.7
|
100.8
|
86.4
|
100.3
|
|
Total
|
199.4
|
192.3
|
203.6
|
209.8
|
196.8
|
212.9
|
174.2
|
210.8
|
|
*Third
advance estimates
Source: Ministry
of Agriculture
|
|
Table
2: Commercial crop production (Million tonnes)
|
|
Crop
|
1996-97
|
1997-98
|
1998-99
|
1999-2000
|
2000-01
|
2001-02
|
2002-03
|
2003-04@
|
|
Groundnut
|
8.6
|
7.4
|
9.0
|
5.3
|
6.4
|
7.0
|
4.4
|
8.5
|
|
Rapeseed/Mustard
|
6.7
|
4.7
|
5.7
|
5.8
|
4.2
|
5.1
|
3.9
|
5.9
|
|
Soya bean
|
5.4
|
6.5
|
7.1
|
7.1
|
5.3
|
6.0
|
4.6
|
7.6
|
|
Other oilseeds
|
3.7
|
2.7
|
3.0
|
2.5
|
2.5
|
2.6
|
2.2
|
3.0
|
|
Total nine oilseeds
|
24.4
|
21.3
|
24.8
|
20.7
|
18.4
|
20.7
|
15.1
|
25.0
|
|
Cotton*
|
14.2
|
10.9
|
12.3
|
11.5
|
9.5
|
10.0
|
8.7
|
13.5
|
|
Jute & Mesta**
|
11.1
|
11.0
|
9.8
|
10.6
|
10.6
|
11.7
|
11.4
|
11.2
|
|
Sugarcane
|
277.6
|
279.5
|
288.7
|
299.3
|
296.0
|
297.2
|
281.6
|
244.8
|
|
*Million bales of
170 kgs each; **million bales of 180 kgs
each; @ Third advance estimates
Source: Ministry of Agriculture.
|
Growth in
agriculture
Agriculture & allied sector value added
registered a growth rate of 9.1 per cent in 2003-04,
reflecting the growth in physical production and
remunerative prices of agricultural goods. The
growth rate of the sector for 2003-04 was one
of the highest in recent years, and only marginally
lower than the previous high of 9.6 per cent achieved
in 1996-97 (Table 3).
|
Table
3: Tea production, consumption and trade
(Qty: Million Kgs Value: Rs Crore)
|
|
Year
|
Production
|
Export
|
Import
|
Domestic Consumption
|
|
1997-98
|
835.64
|
211.26
|
2003.15
|
2.61
|
17.79
|
602
|
|
1998-99
|
854.78
|
205.86
|
2191.84
|
8.93
|
64.73
|
620
|
|
1999-00
|
835.35
|
192.44
|
1932.66
|
10.36
|
61.97
|
638
|
|
2000-01
|
848.36
|
203.55
|
1889.78
|
15.23
|
95.47
|
658
|
|
2001-02
|
847.25
|
190.00
|
1695.78
|
16.02
|
82.70
|
678
|
|
2002-03
|
837.60
|
184.40
|
1665.04
|
19.67
|
90.91
|
698
|
|
2003-04*
|
850.49
|
180.43
|
1552.61
|
8.28
|
50.99
|
719
|
|
*Estimate
Source: Ministry of Commerce and Industry.
|
|
Table
4: Area and production of major horticultural
crops
(Area: Million hectares, Production:
Million tonnes)
|
|
Crop
|
1999-2000
|
2000-2001
|
2001-2002
(Provisional)
|
2002-2003
(Provisional)
|
| Area |
Production |
Area |
Production |
Area |
Production |
Area |
Production |
| Fruits |
3.80 |
45.50 |
3.89 |
43.14 |
4.00 |
43.00 |
4.18 |
47.68 |
| Apple |
0.23 |
1.05 |
0.24 |
1.23 |
0.24 |
1.16 |
0.25 |
1.47 |
| Banana |
0.49 |
16.81 |
0.47 |
14.14 |
0.47 |
14.21 |
0.68 |
16.82 |
| Citrus |
0.53 |
4.65 |
0.50 |
4.40 |
0.62 |
4.80 |
0.60 |
4.72 |
| Grapes |
0.04 |
1.13 |
0.05 |
1.06 |
0.05 |
1.21 |
0.06 |
1.15 |
| Guava |
0.15 |
1.71 |
0.15 |
1.63 |
0.15 |
1.72 |
0.22 |
1.78 |
| Litchi |
0.05 |
0.43 |
0.05 |
0.40 |
0.06 |
0.40 |
0.05 |
0.44 |
| Mango |
1.49 |
10.50 |
1.52 |
10.06 |
1.58 |
10.02 |
1.60 |
10.78 |
| Papaya |
0.06 |
1.67 |
0.07 |
1.79 |
0.07 |
2.59 |
0.08 |
1.85 |
| Pineapple |
0.07 |
1.02 |
0.08 |
1.22 |
0.08 |
1.18 |
0.09 |
1.31 |
| Sapota |
0.06 |
0.64 |
0.07 |
0.74 |
0.05 |
0.60 |
0.07 |
0.71 |
| Others |
0.63 |
5.89 |
0.23 |
6.49 |
0.63 |
5.11 |
0.48 |
6.65 |
| Vegetables |
5.59 |
90.83 |
6.25 |
94.00 |
6.20 |
88.62 |
7.59 |
97.50 |
| Brinjal |
0.50 |
8.12 |
0.47 |
7.70 |
0.50 |
8.35 |
0.50 |
7.83 |
| Cabbage |
0.26 |
5.91 |
0.25 |
5.51 |
0.26 |
5.68 |
0.28 |
5.80 |
| Cauliflower |
0.25 |
4.72 |
0.26 |
4.69 |
0.27 |
4.89 |
0.28 |
4.80 |
| Okra |
0.35 |
3.42 |
0.35 |
3.34 |
0.35 |
3.32 |
0.37 |
3.53 |
| Onion |
0.49 |
4.90 |
0.45 |
4.72 |
0.50 |
5.25 |
0.53 |
5.45 |
| Pea |
0.27 |
2.71 |
0.32 |
3.01 |
0.30 |
2.04 |
0.35 |
3.20 |
| Potato |
1.34 |
25.00 |
1.21 |
22.44 |
1.25 |
24.45 |
1.37 |
25.00 |
| Tomato |
0.46 |
7.43 |
0.46 |
7.24 |
0.46 |
7.46 |
0.54 |
7.60 |
| Others |
2.07 |
28.63 |
2.48 |
35.35 |
2.31 |
27.18 |
3.37 |
34.74 |
| Flowers |
0.09 |
0.52 |
0.10 |
0.56 |
0.11 |
0.54 |
0.15 |
0.70 |
| Spices |
2.50 |
3.02 |
2.50 |
3.02 |
3.22 |
3.77 |
- |
- |
| Cashew nut |
0.69 |
0.52 |
0.72 |
0.45 |
0.74 |
0.46 |
0.73 |
0.47 |
| Areca nut |
0.29 |
0.33 |
0.29 |
0.33 |
0.29 |
0.33 |
- |
- |
| Coconut* |
1.77 |
12.23 |
1.82 |
12.68 |
1.89 |
12.82 |
- |
- |
| Other Horticultural crops |
NA |
1.75 |
0.11 |
0.15 |
0.12 |
0.17 |
0.13 |
0.19 |
NA: Not available *-production
in thousand million nuts
Source: Ministry of Agriculture. |
India owns one of the largest livestock population
in the world and has now become the largest global
producer of milk.
India is the sixth largest producer
of fish and second largest producer of inland
fish in the world. Fisheries sector is recognized
as a powerful generator of income and employment.
It is also a source of cheap land nutritious food
besides being a major foreign exchange earner.
The major thrust of the policies
and programmes of the Government of India relating
to livestock and fisheries is in the areas of
rapid genetic up gradation of milch animals, improvement
in the delivery mechanism of breeding inputs,
control of animal diseases, creation of disease
free zones, increased availability of nutritious
feed and fodder, development of dairy activities
and backyard poultry, development of processing
and marketing facilities and enhancement of production
and profitability of livestock and fisheries enterprises.
Agri-Trade
Agri-exports
Agricultural exports increased from $5.9 billion
in 2001-02 to $6.7 billion in 2002-03 (Table 6).
However, as a percentage of total merchandise
exports, the share of agri-exports declined from
13.5 per cent in 2001-02 to 12.8 per cent in 2002-03.
Marine products, contributing around 20 per cent
of the total agri-exports, is amongst the dominant
items of the agri-exports, is amongst the dominant
items of the agri-exports of the country. The
exports of food grains (rice and wheat) have picked
up considerably in recent years, accounting for
around 20 per cent of the agri-exports. The Government's
special efforts to encourage export of food grains
in recent years through grant of WTO compatible
subsidies has placed India as one of the leading
exporters of food grains in the international
market
Exim Policy 2002-07 emphasized
the importance of agricultural exports and announced
the following policy measures to
|
Table 5: Gross capital formation
in agriculture at 1993-94 prices (Rs crore)
|
|
Year
|
Total
|
Public
|
Private
|
Percent share
|
Investment in agriculture as per cent of
GDP
|
|
Public
|
Private
|
|
1990-91
|
14836
|
4395
|
10441
|
29.6
|
70.4
|
1.9
|
|
1991-92
|
13389
|
3871
|
9518
|
28.9
|
71.1
|
1.7
|
|
1992-93
|
14508
|
4076
|
10432
|
28.1
|
71.9
|
1.8
|
|
1993-94
|
13523
|
4467
|
9056
|
33.0
|
67.0
|
1.6
|
|
1994-95
|
14969
|
4947
|
10022
|
33.0
|
67.0
|
1.6
|
|
1995-96
|
15690
|
4849
|
10841
|
30.9
|
69.1
|
1.6
|
|
1996-97
|
16176
|
4668
|
11508
|
28.9
|
71.1
|
1.5
|
|
1997-98
|
15942
|
3979
|
11963
|
25.0
|
75.0
|
1.4
|
|
1998-99
|
14895
|
3870
|
11025
|
26.0
|
74.0
|
1.3
|
|
1999-00
|
17304
|
4221
|
13083
|
24.4
|
75.6
|
1.4
|
|
2000-01
|
16906
|
3927
|
12979
|
23.2
|
76.8
|
1.3
|
|
2001-02
|
17328
|
4127
|
13201
|
23.8
|
76.2
|
1.3
|
|
2002-03*
|
18657
|
4538
|
14119
|
24.3
|
75.7
|
1.3
|
|
*Quick estimates
Source: Central Statistical Organization
|
|
Table 6: Agricultural
Exports
|
| Crop |
2001-02
|
2002-03
|
2002-03 (April-Feb.)
|
2003-04 (April-Feb.)
|
| Million
US Dollar |
Percent
share of agri exports |
Million
US Dollar |
Percent
share of agri exports |
Million
US Dollar |
Percent
share of agri exports |
Million
US Dollar |
Percent
share of agri exports |
|
Tea
|
360.5
|
6.1
|
343.6
|
5.1
|
320.3
|
5.3
|
317.1
|
4.9
|
|
Coffee
|
229.6
|
3.9
|
205.5
|
3.1
|
180.6
|
3.0
|
201.4
|
3.1
|
|
Rice
|
665.5
|
11.3
|
1238.1
|
18.4
|
1106.0
|
18.2
|
799.7
|
12.3
|
|
Wheat
|
278.9
|
4.7
|
363.6
|
5.4
|
339.0
|
5.6
|
453.2
|
7.0
|
|
Sugar & Molesses
|
373.6
|
6.3
|
375.1
|
5.6
|
304.2
|
5.0
|
258.3
|
4.0
|
|
Tobacco
|
169.3
|
2.9
|
212.5
|
3.2
|
181.0
|
3.0
|
205.4
|
3.2
|
|
Spices
|
313.9
|
5.3
|
342.8
|
5.1
|
314.2
|
5.2
|
286.4
|
4.4
|
|
Cashew
|
375.1
|
6.4
|
424.2
|
6.3
|
396.4
|
6.5
|
331.5
|
5.1
|
|
Sesame and Niger Seeds
|
127.9
|
2.2
|
93.2
|
1.4
|
82.9
|
1.4
|
141.7
|
2.2
|
|
Guargum Meal
|
84.5
|
1.4
|
100.6
|
1.5
|
87.9
|
1.4
|
100.2
|
1.5
|
|
Oil meals
|
474.5
|
8.0
|
308.8
|
4.6
|
286.4
|
4.7
|
563.1
|
8.7
|
|
Fruits & Vegetables
|
262.8
|
4.5
|
300.2
|
4.5
|
258.2
|
4.2
|
385.1
|
5.9
|
|
Processed Fruits &
Vegetables
|
107.5
|
1.8
|
118.8
|
1.8
|
109.5
|
1.8
|
66.4
|
1.0
|
|
Meat & Meat Preparations
|
250.2
|
4.2
|
284.6
|
4.2
|
263.1
|
4.3
|
310.3
|
4.8
|
| Marine
Products |
1236.8 |
21.0 |
1431.6 |
21.3 |
1303.6 |
21.5 |
1218.8 |
18.7 |
|
Others
|
590.4
|
10.0
|
611.1
|
9.1
|
542.9
|
8.9
|
867.3
|
13.3
|
|
Agricultural Exports
|
5901.0
|
100.0
|
6734.0
|
100.0
|
6076.0
|
100.0
|
6506.0
|
100.0
|
| Total
Exports |
43826.7 |
|
52719.4 |
|
47136.1 |
|
55716.7 |
|
| Agri
Exports as per cent of Total Exports |
|
