Despite a sharp rise in commodity prices which attracted an additional Rs342 in rural economy, the sector could not achieve desired growth targets. Economic Survey 2010-11 reveals that the sector registered limited growth of 1.2 percent against the target of 3.8 percent during the FY10-11.
Economic Survey indicates that the agriculture, which provides employment to 45 percent of the population and inputs to agro-based industries and has lost significant momentum during the last three decades. Its growth slowed down to 2.7 percent in the previous decade against 4.4 percent in 1990s and 5.4 percent in the 1980s. It points out that structural problems and the lack of mechanisation remained main hindrance to growth.
Major crops remained the victim of natural calamities during the last few years and three out of last four years witnessed negative growth in the major crop sector. Economic Survey points out that the unprecedented floods in July last year washed away two major crops, rice and cotton. It estimates that an area of 2.364 million hectares under kharif crops was damaged.
During 2010-11, overall performance of agriculture sector exhibited a weaker growth mainly due to negative growth of major crops and forestry. Against the growth target of 3.8 percent, and the previous year’s performance of 0.6 percent, agriculture is estimated to grow by 1.2 percent.
Economic Survey estimates that the major crops, accounting for 31.1 percent of agricultural value added, registered a negative growth of 4.0 percent for a second year in a row mainly because of decrease in production of rice and cotton by 29.9 and 11.3 percent, respectively. While minor crops, accounting for 10.9 percent of overall agriculture value addition, grew by 4.8 percent as against negative growth of last two years.
The survey finds out that the livestock sector having 55.1 percent stake in the agriculture sector was also impacted by the massive floods and witnessed marked slowdown recorded growth at 3.7 percent in 2010-11 against 4.3 percent last year. It points out that the sector is immune from weather related problems and thus offers prospects for consistent growth.
Fishery sector grew by 1.9 percent compared to last year’s growth of 1.4 percent. Forestry has experienced negative growth of 0.4 percent this year as compared to last year’s positive growth of 2.2 percent.
Economic Survey underlines that the country’s agriculture performance is mainly dependent upon the availability of irrigation water. It points out that kharif season of 2010 was marked by a shaper shortage of water than any other kharif season since 2003-04. During the ending fiscal year (2010-11), the availability of water as a basic input for kharif 2010 (for the crops such as rice, sugarcane and cotton) has been 20 percent less than the normal supplies and 21 percent less than last year’s kharif season. The water availability during rabi season (for major crop such as wheat), is, however, estimated at 34.6 MAF, which is 5.0 percent less than the normal availability, and 38 percent more than last year’s rabi crop. It states that the overall (both for kharif as well as rabi) water availability has been
less in the range of 2.5 percent (2005-06) to 20.6 percent (2004-05).
