Rural Pulse
Issue - VI, November - December 2014
NABARD
Department of Economic Analysis and Research
1
The Indian economy is inherently agrarian innature. However, with small andmarginal holdings constituting
85 per cent of total holdings, the consequent unsustainability of agriculture has major ramifications for the
growth prospects of the economy. The goal of long term food security can be attained only if agriculture
is made sustainable. A major concern at the farmers’ level is that the input levels have to be continuously
increased in order to maintain the yield at the existing level. This poses a threat to the economic viability
and sustainability of crop production. The present issue of ‘Rural Pulse’ focuses on reforms in agricultural
policies and agronomic practices which could make agriculture sustainable in India.
Sustaining Agricultural Growth – Some Perspectives
Dr. Debesh Roy
Deputy General Manager
Introduction
The share of agriculture in the GDP has been declining
over the years in India, having fallen steadily from 48.3
per cent in 1970-71 to reach 13.9 per cent in 2013-14
(Chart 1). However, there is no corresponding decline in
the share of population dependent on agriculture. Further,
average annual growth rate in the agriculture and allied sector
stood at 3.3 per cent during the period 1990-91 to 2013-
14 (Chart 2), a development that is viewed as a constraint
to sustaining high rates of overall economic growth. The
ultimate goal of policy interventions in the agriculture sector
is to increase the incomes of farmers on a sustainable
basis. Thus, policy interventions should lead to raising farm
productivity and at the same time ensuring remunerative
prices to the farmers, especially small and marginal farmers.
Area under Cultivation, Production and Productivity
Area under cultivation of food grains has remained stagnant
during the past more than four and a half decades, ever
since the Green Revolution years (1968-69) when it
stood at 120.4 million ha. In the year 2012-13, the same
recorded 120.8 million ha (Chart 3). While the area under
cultivation of rice recorded an increase from 37.0 million
ha to 42.8 million ha during the period under review, the
same in respect of wheat increased from 16.0 million ha
to 30.0 million ha. Pulses experienced a meagre increase
in area under cultivation from 21.3 million ha to 23.2
million ha. However, the area under cultivation of coarse
cereals witnessed a steady decline form 46.2 million ha to
24.8 million ha.
Due to limited scope for increasing area under cultivation,
only an improvement in yield can result in long term
growth in output. However, average annual growth
in production and yield of foodgrains have stagnated
(Table -1). While rice and wheat have witnessed decline in
the average annual growth rate of production, the growth
rate in yield increased in case of rice but declined in case of
wheat. Coarse cereals and pulses, however, experienced
Table - 1
All-India Average Annual Growth Rates (%) of Production and
Yield of Foodgrains
1990-91 – 1999-00
2000-01 – 2012-13
Production Yield Production Yield
Rice
2.09
1.40
1.90
2.00
Wheat
4.52
2.90
1.80
1.00
Coarse cereals
-0.08
2.00
3.60
4.30
Pulses
1.05
1.80
3.50
2.10
Total foodgrains
2.19
2.40
2.00
1.90
Source: Author’s calculations based on data accessed from EPW
Research Foundation
(downloaded
on 26 December 2014)
