The Economic Survey also pointed out that higher growth in allied sectors, especially livestock, has also contributed to the total agricultural gross value added
The share of income from crops in India has come down to 37 per cent in 2021, from 48 per cent in 2014. Photo: iStock Agriculture and its allied sectors, the largest employer in India, continued to be least hit by the COVID-19 pandemic and will grow at 3.9 per cent in 2021-22, compared to the 3.6 per cent growth it clocked in 2020-21, the Economic Survey said January 31, 2022.
The share of agriculture in the total GVA (gross value added) of the economy was 18.8 per cent. While it is less than 20.2 per cent in 2020-21, the share is still the second-highest in the last 10 years.
The Survey also pointed out that higher growth in allied sectors, especially livestock, has also contributed to the total agricultural GVA.
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“Higher growth in allied sectors, as compared to the crop sector, has obvious implications in terms of increasing importance of the former in the total agricultural GVA vis-a-vis the latter,” it said.
The percentage share of crops has come down to 10.7 per cent in 2019-20, from 12.1 per cent in 2011-12. The share of livestock, on the other hand, has been constantly increasing — from 4 per cent in 2011-12 to 4.4 per cent in 2014-15 to 5.2 per cent in 2019-20.
The contribution of livestock in total agriculture and allied sector GVA (at constant prices) has increased to 29.35 per cent (2019-20) from 24.32 per cent (2014-15). This is according to the estimates of the National Accounts Statistics 2020 for sector wise GVA of agriculture and allied sectors.
The increasing importance of livestock can also be observed from its share in a farming household’s monthly income of Rs 10,218.
The crop income, with a share of 37 per cent, continues to be an important source of farmers’ income. But there is a visible increase in other sources like livestock.
The share of income from crop production has come down from 48 per cent in 2014. But the net receipt from farming of animals has increased to 16 per cent in 2021 from 12 per cent in 2014. Income from wages has also increased to 40 per cent in 2021 from 32 per cent in 2014.
The data is based on the Situation Assessment Survey of agricultural households released last year.
The Economic Survey also emphasised that priority should be given to crop diversification towards oilseeds, pulses and horticulture by addressing the core issues of irrigation, investment, credit and markets in their cultivation.
It said:
While the government has adopted the use of MSP (minimum support price) as a signal to encourage crop diversification, there is also a need for coordinated action from the state governments to facilitate the shift to high value and less water consuming crops to enable realisation of the objective of doubling farmers’ income in a sustainable way.
The Crops Diversification Programme (CDP) is being implemented in the original green revolution states of Punjab, Haryana, and western Uttar Pradesh.
It is being implemented as a sub scheme of the Rashtriya Krishi Vikas Yojana since 2013-14 to shift area under paddy cultivation towards less water guzzling crops such as oilseeds, pulses, coarse cereals, nutri cereals, cotton, etc.
“An amount of Rs 120 crore as central share (Rs 110 crore to CDP in original green revolution states and Rs 10 crore to CDP for replacing tobacco farming) have been earmarked for implementation of the programme during 2021-22,” it said.
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