DIVERSIFICATION OF AGRICULTURE AND GROWTH …

Jharkhand Journal of Development and Management StudiesXISS, Ranchi, Vol. 18, No.1 & 2, Jan.-June 2020, pp. 8379-8393

DIVERSIFICATION OF AGRICULTURE AND GROWTHPERFORMANCE OF MAJOR CROPS IN INDIA

Prakash Chandra Deogharia1

Agriculture is the backbone of the Indian economy. Despite thegrowth of the industrial sector in the last decade it still occupies animportant place as it provides employment to around 60 per cent ofthe Indian economy. For the growth of agriculture, it is necessaryto diversify the sector. Diversification of agriculture is emerging asan important instrument for growth in the agriculture sector. Thepolicymakers are emphasizing on changing the way the agriculturesector works, in order to tackle the inconsistencies in the farmsector. In this backdrop, the present paper analyses thediversification of Indian agriculture and the growth performanceof major crops in India. Secondary data has been used for thepurpose.

Keywords : Agriculture Growth, Diversification, Cropping Pattern

Introduction

Agricultural growth was largely achieved by supply-driven policyinstruments such as irrigation, power, extension services, price supportduring the period of green revolution whereas in the post-reform periodthe agriculture growth is demand-driven, urbanization, increase inper capita income and changing consumer taste and pattern has shiftedthe consumer demand from food grains to live stocks and horticultureproducts. A large number of farmers still depend on traditional foodcrops for their livelihood; however, fifty per cent of the agriculturalGDP comes from horticulture and live stocks products. So, this is hightime to diversify the agriculture from traditional low-valued crops tohighly valued horticulture and livestock commodities. For the purposeof achieving higher income and employment growth in agriculture,diversification of the farm activities is emerging as an importantinstrument. The policy-makers are also emphasizing on changing theway the agriculture sector works to tackle the inconsistencies in thefarm sector and achieve food security. On the backdrop, thediversification of agriculture towards high-value commodities (HVCs)like fruits, vegetables, dairy, poultry, meat, and fish products, etc. aresuggested as a viable solution to stabilize and raise farm income,enhance agricultural growth, increase employment opportunities andconserve natural resources (Deogharia, 2018a). In recent yearsdiversification of the agricultural sector towards the case crops have

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1 University Head, Department of Economics, Vinoba Bhave University,Hazaribagh. Email: [email protected]

8380 Deogharia

achieved higher growth in yield and productivity. Diversification ofagriculture in the post green revolution period has been characterizedby technology-led farming. Much of the area was diverted towards high-value food-grain crops including rice, wheat, and maize. This has ledto the emerging scenario of specialization in many states of the country.The agricultural growth in India slowed down during 90s andagricultural production remained highly volatile compared to 80s.Annual rates of gross capital formation declined sharply between theearly and late 90s and during the same time, the public investment inthe agriculture sector witnessed a declining trend (from 33 to 22 percent). In addition, many concerns have emerged regarding thetraditional food baskets, which favoured rice-wheat combination andresulted in specialization in the cropping pattern. These concerns aremainly related to the increased risk of farmer’s income and related tothe negative externalizes it generated concerning the environmentdegradation and regional disparities. The contribution of agricultureto the GDP is declining overtime but, the number of people engaged inagriculture and its allied activities are still in large numbers raisingconcerns of both land and labour productivity.

On this backdrop, the policy-makers started to discuss thechanges in the agriculture sector to remove inconsistencies and achievebetter levels of food security for poor and malnourished people. Thiscalls for alternative production systems or opportunities that cangenerate new employment, growth and enhances incomes (Barghouti,Kane, Sorby & Ali, 2004). Many farmers depend upon traditional foodcrops for their livelihood. The contribution of area to the output growthhas drastically diminished, however; the expansion of gross croppedarea through double cropping has increased. Since low yield and low-value coarse cereals were replaced by high-value oil seeds as well asRice and Wheat, adversely affecting food grain output. Bhalla and Singh(1997). Adams and Bumb (1993) and Singh, Chaudhary and Singh(1993) examined the growth rates of area production and productivity.Bezabih and Hadera (2007) examined the utilization of low-levelagricultural technologies, risks related to natural occurrences such asstreams and diseases outbreak to be the major sources of the declinein productivity. Horticulture production provides an opportunity forintensive productions and increases small farmers’ participation inthe market. Deogharia (2017) has observed that the horticulture sectorin Jharkhand has great potential; an improvement in the marketingsystem is required for increased aggregate agricultural productivity.The growth performance of major crops at the national level wasdiscussed by different economists. They analyzed agricultureinfrastructure, cropping pattern, trends of growth, mechanization ofagriculture and induction of improved/ new technology in the agriculture

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production system (Thamarajakshi, 1999; Balakrishnan, 2000;Hirashima, 2000; Mahendradev, 1987; Vyas, 2001; Rao, 2003. Recentstudies include those of Bhalla & Singh, 2001, Radhakrishna, 2002,Bhalla & Singh, 2009, and Vaidyanathan, 2001). The Objective of thepresent study is to analyze the diversification of Indian agriculture,growth performance of major crops at the national level, Area,Production and productivity of major crops, Mechanisation andtechnology uses; Agriculture holding condition; Change in CroppingPattern; Horticulture Scenario (Area, Production and Productivity) inIndian Agriculture.

Methodology and sources of data

Secondary data on area, production and productivity werecalculated and are used for analysis. Data from 2009-10 to 20016-17has been used to understand the trend in the area, production andproductivity. To analyze the stability or instability of production in allselected crops. The study has assessed the impact through regressionanalysis. The study has computed the growth from a different period.In addition, the usual statistical measures such as percentage, growthrate and regression analysis such as R2 has also been calculated.

Results and findings

Agriculture is the most important sector in India because of itshigh share in employment and livelihood creation. The share ofagriculture in the GDP has registered a steady decline in recent yearshowever, this sector provides direct employment to more than 50% ofthe total workforce in the country and large proportion of the populationdepends upon agro-based industries and trade of agriculture products.About 60% of the population of our country is rural and the mainoccupation is agriculture. So, a large proportion of the land in thecountry is used for agriculture and horticulture. If the productivity inagriculture and horticulture improves with the help of mechanization,advanced technology, this sector may have a leading role in India’seconomic development (Deogharia, 2018a).

Cropping pattern and trends of agriculture growth in India

The cropping pattern in India has undergone significant changesovertime. As the cultivated area remains more or less constant, theincreased demand for food because of the increase in population andurbanization puts agricultural land under stress resulting in cropintensification and substitution of food crops with commercial crops.

India’s total geographical area is 328.7 MH, of which the netsown area is 140.0 MH. The gross cropped area is 192.2 MH and thusthe cropping intensity works out to 137.3 per cent. The net irrigatedarea is 63.3 MH as per land-use statistics. Agriculture sector showsdiversification in India. The trend of agriculture and the allied sectorcan be observed from the table given below (1a&1b).

Table–1a. Share of agriculture and allied sector as % of totalGDP during 2009-13

(Rs. In Crore)Item Year

2009-10 2010-11 2011-12 2012-13GDP of Agriculture 660987 713477 739495 752746and Allied Sector% of Total GDP 14.6 14.5 14.1 13.7

Sources: Central Statistical Organisation (CSO)

Table 1(a)shows that GDP of agriculture and allied sector aswell as percentage of total GDP which are declining at very low rate,so we can say that it is consistent during 2009-10 to 2012-13.

Table–1b. Share of agriculture and allied sector of totalGVAduring 2013-17

(Rs. In Crore)Item Year

2013-14 2014-15 2015-16 2016-17GVA of Agriculture 1926372 2068958 2175547 2372085and Allied Sector% of Total GVA 18.6 18.0 17.5 17.4

Sources: Central Statistical Organisation (CSO)

Table 1(b) Shows that GVA of agriculture and allied sector aswell as percentage of total GVA are also declining with low rate, i.e.consistent in the period of 2013-14 to 2016-17.

From both the tables it is clear that the percentage of total GDP/GVA is consistent with approximately 14% but the percentage of totalGVA is consistent with approximately 18%, i.e. percentage of GVA islarger than percentage of GDP.

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Table–2. Growth in total GDP/GVA and growth in agriculture& allied sector

Period Growth in Total GDP Growth in Agriculture & Allied Sector2007-08 9.3 5.82008-09 6.7 0.12009-10 8.6 0.82010-11 9.3 7.92011-12 6.2 3.62012-13 5.0 1.8

Growth in Total GVA

2013-14 6.1 5.62014-15 7.2 -0.22015-16 7.9 0.72016-17 6.6 4.9

Sources : *Central Statistical Organisation (CSO)*Compiled From Different Annual Report

The above table shows the growth in total GDP and growth inagriculture & allied sector up to the period 2012-13 but from 2013-14to 2016-17 the growth is in terms of GVA.Growth in total GDP islowest (5.0) in 2012-13 and growth in agriculture & allied sector in thesame period is also low (1.8%). The highest growth in agriculture wasobtained during 2010-11(7.9%) whereas negative growth rate in termsof GVA has been obtained during 2014-15. After 2012-13 in terms ofGVA the growth in total GVA in the period of 2013-14 to 2016-17 areconsistent but growth in agriculture & allied sector especially in 2014-15 is in the negative(-0.2%) and after first in 2015-16 is 0.7% but in2016-17 rapidly increase with 4.9%. From the table, it is clear thatgrowth in total GDP and GVA are consistent but growth in agriculture& allied sectors fluctuated. Growth trends of major crops

Growth trends of Indian agriculture may be analyzed in termsof area, production and productivity growth in area which was themajor source of production growth until the early 1960s. The highyielding varieties were introduced in wheat and rice during the latesixties causing India’s Green revolution. Along with technology, newinstitutional structure enabled the farmers to adopt improved methodsof cultivation. The major changes included the provision of betterirrigation facilities, government procurement system, guaranteedsupport price and input subsidies that played an important role in thegrowth performance of crops. We are analyzing growth performancein area, production and productivity of major crops below.


Table–3. Year wise cultivated area of major crops in India

Crops Area(Lakh Hectares)2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17

Rice 419.18 428.62 440.06 427.54 441.36 441.10 433.88 431.94Wheat 284.57 290.69 298.64 300.03 304.73 314.65 302.77 305.97Coarse 276.75 283.39 264.22 247.57 252.19 251.7 237.75 247.71CerealsPulses 232.82 264.02 244.62 232.56 252.12 235.54 252.59 294.65Oilseeds 259.59 272.24 263.08 264.84 280.5 255.96 261.34 262.06Sugar- 41.75 48.85 50.38 49.99 49.93 50.66 49.53 43.89Cane

Sources: Annual Report 2016-17, India

The above table shows the area of major crops in India during2009-10 to 2016-17. There is a consistent change in the area of allmajor crops. Only one area of coarse cereals decrease and area of allcrops increase in 2016-17 compare to 2009-10. But area of rice andsugarcane decreases and the area of wheat, coarse cereals, pulses andoilseeds increase in 2016-17 compared to2015-16.

In 2016-17 rice is one of the most important crops which iscultivated in large (431.94) cultivating area and sugarcane is verylow(43.89 Lakh hectares). So, it is clear that rice is the most importantcrop and wheat is the second most important crop on the basis of areacultivation in India. The area of pulses is rapidly increasing in 2016-17(294.65 Lakh hectares) compared to 2009-10(232.82).

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Table–4. Production of major crops in India during 2009-10 to2016-17

Production (Million Tonnes)Year Crops

Rice Wheat CoarseCereals Pulses Oilseeds Sugar-Cane2009-10 89.09 80.80 33.55 14.66 24.88 292.302010-11 95.98 86.87 43.40 18.24 32.48 342.382011-12 105.31 94.88 42.04 17.09 29.80 361.042012-13 101.80 92.30 38.47 17.57 29.46 334.542013-14 106.54 95.91 43.05 19.27 32.88 350.022014-15 105.48 86.53 42.86 17.20 27.51 362.342015-16 104.41 92.29 38.52 16.35 25.25 348.482016-17 110.15 98.38 44.19 22.95 32.10 306.72Sources: Complied from India, Annual Report 2016-17

The table on the production of the major crop in India showsthat production of all crops such as rice, wheat, coarse cereals, pulses,oilseeds and sugarcane are increasing during 2016-17. But theproduction of sugarcane has a decreasing (306.72MT) trend howeverproduction of different crops has increasing trend 2016-17. It is clearfrom the table there is a consistent change in the production of riceand wheat during 2016-17. But coarse cereals, pulses and oilseeds havemore fluctuation in production during the period.

Table–5. Year wise productivity of major crops in IndiaCrops Productivity(Kg/Ha)

2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17

Rice 2125 2239 2393 2462 2416 2391 2404 2550Wheat 2839 2989 3177 3118 3145 2750 3093 3216Coarse 1212 1531 1591 1617 1717 1703 1596 1100CerealsPulses 630 691 699 786 764 728 652 779Oilseeds 958 1193 1133 1168 1153 1075 968 1225

Sources: Annual Report 2016-17,India


The table shows the production of major crops in India during2009-10 to 2016-17. Compared to 2009-10 and the rest of the majorcrops’ productivity increase in 2016-17.

Similarly, the same condition is shown in 2016-17 compared to2015-16. The productivity of oilseeds increases more and productivityof coarse cereals decreases more in 2016-17 comparatively from 2015-16. Finally,it is clear from the table; there is a consistent change inproductivity of major crops in India. Horticulture crops

Horticulture crops especially vegetables are an important partof agriculture. So, it is also desirable to analyse the trend in area,production and productivity of horticulture crops.

Table–6. Year wise area under horticulture crops in India

Year Area (M ha) Estimated Value Growth inArea %

2009-10 20.8 4766.45 -2010-11 21.8 4767.83 4.802011-12 23.2 4769.22 6.422012-13 23.7 4770.61 2.152013-14 24.5 4771.99 3.382014-15 23.2 4773.38 -5.312015-16 25.5 4774.77 9.912016-17 24.8 4776.15 0.40

Sources: Annual Report 2017-18, India

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R2=0.7807

Y=1980.51+1.39X

The value of R2 is 0.7807 which clearly shows 78% variation inthe area of horticulture crops by variation in time.â is 1.39x showingthat there has been an increase in 1% area of horticultural crops ineight years, which shows co-efficient of variation.

The area under horticultural crops from 2009-10 to 2016-17 are20.8, 21.8, 23.7, 24.5, 23.2, 25.5 and 24.8 M ha. Respectively, thepercentage growth of the area is -5.31% in 2014-15 which is less and9.91% in 2015-16 which is high growth rate during period 2009-10 to2016-17(fig-1).

Table–7. Year wise production of horticulture crops in India

Year Production Estimated Growth in(MT) Value Production %

2009-10 223 2175.22 -2010-11 240.5 2175.31 7.842011-12 257.2 2175.40 6.942012-13 268.8 2175.50 4.472013-14 280.8 2175.59 4.462014-15 277.7 2175.68 -1.102015-16 286.2 2175.78 3.062016-17 300.6 2175.87 5.03Sources: Annual Report 2017-18,India

Figure–1. Percentage growth in area of horticulture crops inIndia during 2009-17


R2=0.9366

Y=1988.16+0.09x

The value of R2 is 0.9366 clearly showing 93% variation inproduction of horticultural crops by variation in time. â is 0.9x showingthat there has been an increase in production of horticultural cropsby 0.09%, in eight years, which shows co-efficient of variation.

The production of horticulture crops during 2009-10 to 2016-17are 223, 240.5, 257.2%, 268.8, 280.8, 277.7, 286.26& 300.6 MT, whereasthe growth of production is -1.10% in 2014-15 which is very low and7.84% in 2010-11 which is high growth rate during 2009-10 to 2016-17(fig-2).

Table–8. Year wise productivity of horticulture crops

Year Productivity Estimated Growth in(MT/M ha) Value Productivity %

2009-10 10.72 11820.22 -2010-11 11 11825.13 2.612011-12 11.08 11830.04 0.722012-13 11.34 11834.95 2.252013-14 11.46 11839.86 1.062014-15 11.96 11844.77 4.362015-16 11.68 11849.67 -2.342016-17 12.1 11854.58 1.65


Figure–2. Percentage growth in horticulture crops productionduring 2009-17

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R2=1

Y=1956.96+ 4.91x

The value of R2 is 1, it clearly shows 100% variation inproductivity of horticultural crops by variation in time. â is 4.91xshowing that there had been increase in 4.91% productivity ofhorticultural crops in eight years, which shows co-efficient ofvariation.

The productivity of horticultural crops during 2009-10 to2016-17 are 10.72, 11, 11.08, 11.34, 11.46, 11.96, 11.68 and 12.01 MT/M ha represent which is consistent during period. Growth ofproductivity of horticultural crops is -2.34% in 2015-16 which is lowand 4.36% in 2014-15, which is high during period of 2009-10 to2016-17(fig-3).

Discussion

In the post green revolution period the new institutional structurewith technological changes has enabled the farmers to adopt animproved method of cultivation and crop diversification. Improvedirrigation facilities, government procurement system, guaranteedsupportprice system, input subsidy and creation of horticulture missionhas encouraged the farmers to diversify their crops.

Figure–3. Percentage growth in productivity of horticulturecrops in India during 2009-17


Mechanisation of agriculture

There has been a large scale of mechanization of agricultureprocess in India. For enhancing production and productivity, as wellas for reducing the cost of production, the induction of improved/newtechnology in the agricultural production system has become inevitable.The level of mechanization has been increasing steadily over the yearsbecause of the joint efforts made by the Government and the privatesector. The total farm power availability which has been estimatedhas increased. This is evident from the sale of tractors and power tillers,taken as indicators of the adoption of mechanized means of farming,during the last eight years, as given in table below.

Table–9. Year wise sale of tractors and power tillers in India

Year Tractors Sold Growth Power Tillers Growth in %(Nos) in % Sold(Nos)

2009-10 393836 - 38794 -2010-11 545109 38.41 55000 41.772011-12 535210 -1.81 60000 9.092012-13 590672 10.36 47000 -21.672013-14 686828 17.97 56000 19.152014-15 551463 -20.86 46000 -17.862015-16 626839 13.67 48882 6.272016-17 580000 -7.47 45200 -7.53


From the above table, it is clear that the sale of tractors is larger(580000) than power tillers (45200) in 2016-17 and in this period thesale growth of both tractors and power tillers are in negative respectively-7.4% and -7.53%. The high sale growth of tractors in 38.41% in 2010-11 and low sale growth is -20.86% in 2014-15 during the period of2009-10 to 2016-17. Similarly, the high sale growth of power tillers is41.77% in 2010-11 and low sale growth of power tillers is -21.67% in2012-13 during the period of 2009-10 to 2016-17. There is very highfluctuation in tractors sold and power tiller sold during 2009-10 to2016-17. During 2010-11 the growth in the sale of tractor and tillersare because of an increase in production and productivity as shown inthe above tables (Table 6,7 and 8). Agricultural operational holding

There has been a change in an operational holding in the country.Table 10 shows the size wise operational holdings in India.

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Table–10. Size wise operational holdings in India

Sl. NO. Size Groups Operational Holdings % of Total(in ‘000’) Operational

Holdings01 Marginal (> 1 ha) 99858 68.5202 Small (1-1.99 ha 25777 17.6903 Semi-Medium (2-3.99 ha) 13776 9.4504 Medium (4-9.99 ha) 5485 3.7605 Large (10 ha & above) 831 0.57

All Size Groups 145727 100.00

Sources: Agriculture Census 2015-16

Figure–4. Size wise share of operational holding among Indianfarmers (in %)

The table and figure both show the operational holding in Indiaon the basis of the 2015-16 year. Marginal size groups had the largestoperational holding 99858 thousand (68.52%) and the secondlargestoperational holdings of small size groups which are 25777 thousand(17.69%) and the large size groups of operational holding are very few,which is only 831 thousand (0.57%).

The study has a limitation as it has not included data such asfertilizer application, cropping pattern, farm income, irrigation andthe demand-supply gaps etc. Above analysis would have been moreworthwhile if such variables were taken into consideration. Conclusion

The Indian economy has undergone structural changes over timewith the anticipated decline in the share of agriculture in GDP, despitea fall in its share from 55.1 per cent in 1950-51 to 13.7 in 2012-13. Theshare of agriculture and its allied sector was 8.6% during 2013-14 and17.4% during 2016-17 in GVA terms. Agriculture has not diminishedfor two major reasons; first, the country achieved self-sufficiency infood production at the macro level, but still is a food-deficit countryfacing massive challenges of the high prevalence of malnourishedchildren and high incidence of rural poverty. The pressure on


agriculture to produce more and raise farmer’s income is high; second,the dependence of the rural workforce on agriculture for employmenthas not declined in proportion to the sectoral contribution to GDP.

This study found that the process of crop diversification hascaused changes in the cropping pattern. The cultivated area, theproduction and the productivity under cereals are consistent whereasarea, production and productivity of horticulture crops have increasedduring the period 2009-10 to 2016-17. Now-a-days diversification ofagriculture is being adopted towards the crops having higherproductivity. Diversification of the agricultural sector towards the cropsthat have experienced higher growth in yield has been characterizedas technology-led diversification. Much of the area is diverted towardshigh-value food-grain crops including rice, wheat and maize. This hasled to the emerging scenarios of specialization in many states of thecountry (Deogharia, 2018a). It is clear from the above study that thegrowth rate of productivity of different crops taken into considerationhas a positive impact on the growth rate of production while a decreasein area under crops failed to accelerate the outputs.

The pattern of agriculture diversification in India has beendiscussed. The share of agriculture in the overall economy has beendecreasing whereas the share of horticulture in agriculture hasincreased. There has been a significant structural change in thehorticulture sector of the economy. For many commodities theproduction has concentrated over the years, this suggests an increasingtrend towards specialization in agriculture production. The changesin the per cent in the gross cropped area also suggest a move towardsspecialization. There has been a significant increase in the per cent ofgross cropped area under fruits and vegetables.

The success of the green revolution was limited, so the stategovernment, as well as the central government, will have to take anaffirmative action plan to promote the agriculture sector to break thestagnancy in productivity. Investment in technology, higher capitalformation, better cropping system, appropriate crop rotation andencouragement towards agriculture diversification is desired.

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