facts about Agriculture

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Agriculture today

Agriculture must keep up with growing humanity’s ever greater needs. This section explores how agriculture has changed the way we live, and how it may need to evolve further in order to produce food for the next generation

7 Facts about Indian Agriculture

·        Decrease in Agriculture GDP

·        Organic agricultural export market drives greening of agriculture

·        Pesticide use increased more than 100%

·        Bio-fertilizer production is the future

·        Warehousing capacity Increased

    1) Decrease in Agriculture GDP

GDP from Agriculture in India decreased to 4759.48 INR Billion in the first quarter of 2018 from 5666.82 INR Billion in the fourth quarter of 2017.

It averaged 4052.74 INR Billion from 2011 until 2018, reaching an all time high of 5666.82 INR Billion in the fourth quarter of 2017 and a record low of 2690.74 INR Billion in the third quarter of 2011. 

                                 


       

Agriculture & Allied sectors which used to contribute 19 percent of GDP in 2004–05 has come down to 14 percent in 2011–12 at 2004–05 prices, according to government data. The percentage has been declining gradually with the passing of years.

From 19 percent in 2004–05, the percentage share of agriculture & allied sectors in GDP dropped to 18.3 percent in 2005–06 and then to 17.4 percent in 2006–07.

It further dropped to 16.8 percent in 2007–08 and 15.8 percent in 2008–09 before reaching 14 percent in 2011–12, the data showed.

But, capital investment in the sector has shown improvement. As per official figures, Gross Capital Formation (GCF) investment in agriculture sector (at 2004–05 prices) has increased from Rs 69,148 core in 2004–05 to Rs 1, 30,907 cores in 2010–11.

Besides, the agriculture sector has shown an average growth rate of 3.3 percent annually in the Eleventh Five Year Plan period ending March 31, 2012 as compared to 2.4 percent per annum during the Tenth Plan.

Food grain production has also shown an increase from 217.28 million tons in 2006–07 to 257.44 million tons in 2011–12.

2) Organic Agricultural Export Market drives Greening of Agriculture

Organic agricultural export market is one of the major drivers of greening of agriculture in India. The current production of organic crops is around 14,000 tons (2003).

Out of this production, tea and rice contributes around 24% each, fruits and vegetables combine makes 17% of this total production. From India around 11,925 tons of organic products is exported, that makes around 85% of total organic crop production.

Major export market for Indian producers are Australia, Belgium, Canada, France, Germany, Italy, Japan, Netherlands, Sweden, Singapore, South Africa, Saudi Arabia, UAE, UK, and USA. Estimated quantity of various products that are exported from India in 2002 is shown.

This shows that around 3000 tons of tea was exported and in quantity term it was the highest, next major exports are rice (2500 tons), fruits & vegetables (1800 tons), cotton (1200 tons) and wheat (1150 tons).

 


3) Pesticide Use Increased More than 100%

A major input for Indian agriculture is use of various pesticides, like insecticides, weedicides, fungicides, rodenticides etc. As the cropping pattern is becoming more intensive use of these pesticides is also increasing.

Consumption of insecticide in agriculture has been increased more than 100% from 1971 to 1994–95. For instance, insecticide consumption in India, which was to the tune of 22013 tons, has increased to 51755 tons by 1994–95.

Consumption of all of these pesticides in same duration has increased more than two times, that is from 24305 tons to 61357 tons.

As a consequence of adoption of bio intensive Integrated Pest Management Program in various crops, the consumption of chemical pesticide has come down from 66.36 thousand MT during 1994–95 to 43.59 thousand MT during 2001–02 with a reduction of 27.69%.

One of the consequences of indiscriminate use of pesticide is the adverse health impact on society in general and vulnerable population like children in particular. Some of the well-known health effects of pesticide exposure include acute poisoning, cancer, neurological effects and reproductive and developmental harm.

The major causes of concern in this respect are bio -accumulation of pesticides and the prolonged time period that it takes to express the negative health consequences.

4) Bio-fertilizer Production is the Future

For year 2000, proposed production target for bio-fertilizer was 39,165 Mt, which was only 4.8% of the total estimated demand. But the actual production and the distribution of bio fertilizers are below the targeted. This shows the huge gap between potential market demand and production and also provides an opportunity for bio-fertilizer producers.

The total production of bio-fertilizer in India in 1992–93 was 2005.0 tons and it has increased to 8010.1 tons by 1998–99. Similarly the consumption/distribution of bio-fertilizer has also increased 1600.01 tons to 6700.27 tons during the same time period.

But the growth rate in installed bio-fertilizer capacity is comparatively more stable than the growth rate in total production, consumption & distribution of bio-fertilizers. The total production of bio-fertilizers growth rate had reduced to 12.75% during 1998–99 from 53.82% in 1993–94 and during same period the growth rate of consumption & distribution had reduced to 6.43% from 82.15%.

This is an indication that there is not only a need but also a role for market development for green agriculture inputs in India.

In spite of the impressive growth rate of more than 200% in production capacity and around 300% growth rate experienced in production and consumption of bio-fertilizers in India within 6 years (i.e., from 1992–93 to 1998–99) yet it is only around 1.5% of the estimated demand potential for bio-fertilizers in the country.

 

5) Increased Warehousing Capacity

Private sector interest in warehousing industry picked up after the “Rural Go down Scheme” was introduced in year 2001–02 under National Bank for Agriculture and Rural Development (NABARD) and National Cooperative Development Corporation (NCDC).

The warehousing capacity built over past 10 years, especially those sanctioned by NABARD have an average storage capacity per warehouse of 1,261 metric tons (MT) and around 75% of numbers of god owns have capacity of less than 1,000 MT. The development of small and medium god owns indicates that most of them have been built by farmers or a community of farmers thus ensuring that distress sale is reduced and better prices are paid to farmer for their produce.

Apart from this there are few large national level players which have emerged over the last decade owing to the available capital subsidy. These include National Bulk Handling Corporation Ltd., National Collateral Management Services Ltd., Adana Agra Logistics, Star Agriwarehousing & Collateral Management Ltd., Shree Shubham Logistics Ltd., Ruche Infrastructure Ltd., Guru Warehousing Corporation, Pares Warehousing and LTC Commercial.

   itsfacts

 

 

Location: Delhi, India

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