India’s Farm Sector: Expanding Fields, Contracting Fortunes

It is clear that the level of agriculture is slipping due to rapid development in the industrial and service sectors in the country. In this situation, the central and state governments need to emphasise diversification, technology and export products.

The “Statistical Report on Value of Output from Agriculture and Allied Sectors” by the Ministry of Statistics and Programme Implementation has noted that agriculture and allied sectors are the backbone of India’s economy, but there is a need to connect them to the market. Dr. Saurabh Garg, Secretary, Ministry, says, “This report, covering the period 2011-12 to 2023-24, provides granular data on the value of production across states and union territories, which will help policymakers, planners, researchers, academics and stakeholders better understand regional patterns.”

In Numbers

The report shows that the Gross Value Added (GVA) for the Indian economy has tripled from ₹8,107 crore 12 years ago to ₹27,413 crore reflecting the expansion of the overall economy. Within this, the value of production in the agriculture and allied sectors rose from ₹1,908 crore to ₹2,949 crore, showing a growth of 54.6%.

At current prices, the total value of output from agriculture, forestry and fishing stands at ₹29.49 lakh crore. Of this, crop production accounts for the largest share at ₹15.95 lakh crore, followed by livestock at ₹9.19 lakh crore, forestry and logging at ₹2.27 lakh crore, and fishing and aquaculture at ₹2.07 lakh crore.

Rice, wheat and maize are ahead of the boom in major crops. Bananas and chillies are ahead in fruits and vegetables. Uttar Pradesh is the first among the states with the highest production value in the country, followed by Madhya Pradesh, Punjab, Telangana and Haryana. The report notes that the growth of agriculture has slowed down against the industry and service sector, but agriculture is still at the centre for employment and rural development.

Gujarat Diversifies

In the last 12 years, Gujarat has seen an increase in high-value crops from traditional crops in the agricultural sector. Gujarat has consistently been the leader in the country's two largest oilseed and cotton production crops, and now there has been a unique growth in spice crops. According to the report, Gujarat has produced ₹29.2 thousand crore oilseeds in 2023-24, which shows a significant increase compared to ₹22.2 thousand crore in 2011-12.

Gujarat contributes about 57% of the country's total oilseed production. Similarly, the valuation of cotton has increased from ₹24.3 thousand crore to ₹24.9 thousand crore. Gujarat has national leadership in cotton. In spice crops, production has increased from ₹5.6 thousand crore to ₹14.7 thousand crore. Cumin and other aromatic spices have made a significant contribution.

A top official of the state agriculture department said that crop production has increased, but there has been a decline in agricultural land. Other major challenges include dependence on rain, rising production costs, deteriorating quality and declining soil fertility. Rajasthan, Gujarat and Madhya Pradesh are the top three states contributing 57% to oilseeds, while Gujarat and Maharashtra contribute more than 50% to cotton.