Crop Diversification 05

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    An Analysis of Crop Diversification

    Dr. Rajiv Mehta

    Member Secretary, CACP

    Ministry of Agriculture

    Government of India

    National Conference on Agriculture for Kharif Campaign-2005

    22nd 23rd March 2005

    New Delhi

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    Crop Diversification

    An effective strategy for achieving

    food & nutrition security,

    income growth, poverty alleviation,

    employment generation,

    judicious use of land and water resources,

    sustainable agricultural development, and environmental improvement,

    (FAO 2001; Singh 2001).

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    Catalysts for crop diversification

    Demand

    Supply response

    PriceMarket mechanism

    Competitiveness

    Sustainability Response for efficient resource use

    Policy Stimulants

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    Crop Diversification Macro-perspective

    Land - an inelastic factor of production. Declining net area sown 141 million hectares

    Slow vertical expansionGross Cropped Area 1990-01 1999-2000

    (million hectares) 185 190 Depleting Water Availability

    Stress on Soil quality

    Skewed Cropping Pattern Area under foodgrains - 66 percent.

    Area under rice and wheat - 37per cent

    Area under oilseeds 14 per cent.

    Area under Cotton & Sugarcane 7 percent

    Share of other crops - 13 per cent.

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    Analysis of Crop Diversification

    Macro-perspective .contd

    Annual Compound Growth Rate of

    Crop Area (% per annum)

    Crops 84-85 to 94-95 94-95 to 03-04Rice 0.53 -0.05

    Wheat 0.91 0.2

    Cor. Cer. -2.14 -1.09

    Maize 0.49 1.67

    Pulses -0.21 -0.59

    Oilseeds 4.03 -1.9

    Cotton 0.74 -0.97

    S.cane 2.71 0.95

    Annual Growth Rate of Area

    -3

    -2

    -1

    0

    1

    2

    3

    4

    5

    Rice

    Whe

    at

    Cor.Cer.

    Maize

    Puls

    es

    Oils

    eeds

    Cotto

    n

    S.cane

    %

    perannum

    84-85 to 94-95 94-95 to 03-04

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    Analysis of Crop Diversification

    State -perspective

    Quantitative Analysis covers 9 States

    Rice Wheat rotation states

    Punjab

    Haryana

    Uttar Pradesh

    Rice dominant states

    West Bengal

    Bihar

    Other states

    Andhra Pradesh

    Karnataka

    Maharashtra

    Rajasthan

    Crop Abbreviations

    PDY-k Paddy Kharif

    PDY-r Paddy Rabi

    WHT WheatCCL-k Coarse Cereals-Kharif

    CCL-r Coarse Cereals-Rabi

    PLS-k Pulses-Kharif

    PLS-r Pulses-Rabi

    OLS-k Oilseeds-Kharif OLS-r Oilseeds-Rabi

    CTN Cotton

    SCN Sugarcane

    OTH Others

    All the crops except in Others arecovered in MSP operation

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    Existing Cropping PatternStates Crop Area % to Gross Crop Area (TE 2000-01)

    More than 30% 10% to 30 % 2 % to 10%Punjab PDY - k, WHT OTH CTN

    Haryana WHT PDY - k, CCL-k PLS-r, OLS-r, CTN, SCN, OTH

    Uttar Pradesh WHT PDY -k CCL-k, PLS-k, PLS-r,

    OLS-r, SCN, OTH

    Rajasthan WHT,CCL-k, OLS-r,OTH

    PLS-k, PLS-r, OLS-k, CTN

    Maharashtra CCL-k, CCL-r,

    PLS-k, CTN, OTH

    PDY, WHT, PLS-r, OLS, OLS-k,

    CCN

    Andhra PDY-k, OLS-k, OTH PDY-r, CCL-k, CCL-r, PLS-k,

    PLS-r, OLS-r, CTN

    Karnataka CCL-k, CCL-r,

    PLS-k, OTH, OLS-k

    PDY-k, PDY-r, WHT,

    PLS-r, CTN, SCN

    Bihar PDY-k WHT CCL-k, CCL-r, PLS-k, PLS-r,

    OTH

    West Bengal PDY-k PDY-r, OTH WHT, PLS-r, OLS-k,LS-r UTE

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    Change in Cropping Pattern percentage(From TE 1990-91 to TE 2000-01)

    States Shift To Shift From

    More than 4% 2% to 4% More than 4% 2% to 4%

    Punjab PDY OTH WHT, CTN

    Haryana PDY, WHT PLS-r CCL-k, OTH

    Uttar Pradesh OTH CCL-k

    Rajasthan WHT, OLS-r CCL-k

    Maharashtra OTH CTN CCL-k CCL-r, OLS-r

    Andhra OTH CTN CCL-k OLS-k

    Karnataka CCL-k

    Bihar WHT, CCL-r,OTH

    CCL-k, PLS-r

    West Bengal PDY-r, OTH PDY-k

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    Index of Crop Diversification

    Change in Diversification (1990-91 to 2000-01).

    -0.040

    -0.030

    -0.020

    -0.010

    0.000

    0.010

    0.020

    0.030

    0.040

    0.050

    Punja

    b

    Harya

    na

    UttarPra

    desh

    Rajas

    than

    Maha

    rashtr

    a

    Andhra

    Prade

    sh

    Karna

    taka

    Bihar

    WestB

    engal

    Change in Diver.

    Change in Diversification (1990-91 to 2000-01).

    0.500

    0.550

    0.600

    0.650

    0.700

    0.750

    0.800

    0.850

    Punja

    b

    Harya

    na

    UttarPra

    desh

    Rajas

    than

    Maha

    rashtr

    a

    Andhra

    Pradesh

    Karna

    taka

    Bihar

    WestB

    engal

    DiversificationIndex

    Div. Index 90-91 Div. Index 2000-01

    Index in

    1990-91 &

    2000-01

    Change inDiversification

    Index

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    Value ofAgriculturalOutputPer Hectare

    (CurrentPrices)

    &

    Annual %

    GrowthIn Value ofOutput /HA

    ( In ConstantPrices)

    Annual Growth in Value of Output per Hectare (1993-94 prices)

    1990-91 to 2000-01

    0.5

    1.5

    2.5

    3.5

    4.5

    Punjab

    Harya

    na

    UttarPr

    adesh

    Mahara

    shtra

    AndhraPr

    adesh

    Karnataka

    Bihar

    WestB

    engal

    Percentperannum

    Value of Agricultural Output (Current Price )

    4000

    9000

    14000

    19000

    24000

    29000

    34000

    39000

    Punja

    b

    Haryana

    Uttar

    Pradesh

    Maha

    rash

    tra

    Andh

    raPrad

    esh

    Karnataka

    Biha

    r

    WestBe

    ngal

    Rs.perhectare

    1990-91 2000-01

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    Crop Diversification Road aheadMacro Issues

    Food Security

    Foodgrain Requirement 2006-07 2009-10

    (Million. Tonns) 230 245

    Other Demand Issues

    Oilseeds Pulses Demand outpacing domestic supply

    Demand (2006-7) Oilseeds Pulses40 Mn. Tns 18 Mn. Tns

    Existing Import substitution - 40% 15%

    Rising Demand for Horticulture, Livestock and poultry

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    Crop Diversification Road aheadState /Region Specific Issues

    Sustainability Land, Water, Soil

    Demarcation - Regions Districts

    Supply Issues Demand Supply Gap

    Productivity

    Regional Imbalance

    Potential in Eastern and Northeastern States

    Quality and Premium varietypotential e.g. Wheat

    Increasing demand / supply ofHorticulture- Livestock products

    Comparative Advantage Existing yield gaps.

    Stagnant Productivity

    Alternative Cropping Choices

    Research Extension Linkages Export Opportunity

    Market and Institutional issues

    Backward Forward linkages

    Infrastructure Value Addition

    Revisiting land reforms

    Market Reforms

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    Thanks

    E-mail: [email protected]