Upload
lohith-n-reddy
View
214
Download
0
Embed Size (px)
Citation preview
8/13/2019 HVA Seminar 2
1/43
WEL COME TO
SEMINAR-II
ON
PRESENTED BY
NARENDRA NADONI
Sr. M.Sc. (Agri Econ)
PAL 0084
MAJOR ADVISOR
Dr. G.S. ANANTH
8/13/2019 HVA Seminar 2
2/43
FLOW OF PRESENTATION
INTRODUCTION
HIGH VALUE AGRICULTURE GROWTH PATTERN IN INDIA
TRENDS AND COMPOSITION OF INDIAN AGRICULTURAL TRADE
FACTORS BEHIND GROWTH OF HIGH-VALUE AGRICULTURE
FOOD CONSUMPTION TRENDS AND DRIVERS
ENGEL MODEL OF FOOD CONSUMPTION AND EXPENDITURE
GROWTH IN FRESH FRUITS , VEGETABLES AND LIVESTOCK IN INDIA
SMALL FARMERS AND HIGH VALUE AGRICULTURE
POLICY IMPLICATION
CONCLUSION
8/13/2019 HVA Seminar 2
3/43
INTRODUCTION
The contribution of agricultural sector to national Gross Domestic
Product has continued to decline over the years.
Agriculture remains a major source of employment.
There is a substantial change in pattern of production,
consumption and trade in agriculture.
Fig. 1: Share of agriculture In total GDP of India (1971-2010)
Source: : National Accounts Statistics 2010 CSO
8/13/2019 HVA Seminar 2
4/43
There is shift in production and consumption from foodgrains
to high-value agricultural commodities.
This transformation of the sector has profound effects on the
nature of agriculture in India.
HVA create opportunities for farming community.
This transformation has been called a silent revolution,
inviting comparison with the Green Revolution of the 1960s
and 1970s.
Definition : Agricultural goods with a high economic value per
kilogram, per hectare, or per calorie, including fruits,
vegetables, meat, eggs, milk, and fish are called has High value
agricultural products.
8/13/2019 HVA Seminar 2
5/43
HIGH VALUE AGRICULTURE GROWTH
PATTERNS
Throughout the country, major shifts in dietary patterns areoccurring, even in the consumption of basic staples towardsmore diversified diets.
To meet the changing demands, production systems are alsomoving towards high value crops.
The relative importance of foodgrains has declined during thepast two decades.
Due to shift in demand pattern towards high value crops, thefarmers are also responding to market signals and graduallyshifting production-mix to meet the growing demand for high-
value commodities
8/13/2019 HVA Seminar 2
6/43
Particulars
(2009-10)
Share in value of output from agriculture (%) CAGR (%)
TE 1983-84 TE 1993-94 TE 2003-04 TE 2009-10 1980s 1990s 2000s
Foodgrains 31.3 30.6 26.0 24.7 3.0 1.8 2.4
Cereals 26.3 26.6 22.7 21.7 3.2 2.0 2.5
Pulses 5.0 4.0 3.3 3.0 1.7 0.5 2.2
Oilseeds 5.3 6.7 5.2 5.8 5.6 0.4 6.4
F & V 14.1 15.4 16.7 16.9 2.2 6.3 3.5
Livestock 20.6 23.9 25.9 26.1 4.6 3.7 3.8
Milk 12.7 15.4 17.4 17.4 5.2 4.3 3.6
Meat 3.4 4.4 4.5 4.5 5.2 2.6 3.9
Fisheries 2.7 3.9 4.6 4.4 6.0 4.7 2.9
Fibres 3.0 2.9 2.2 3.6 2.6 0.4 17.2
Cond & Sps 2.3 2.6 3.2 3.1 4.7 5.0 3.5
Crop Sector 62.7 56.8 52.8 52.6 2.5 3.0 3.5
HVA 37.3 43.2 47.2 47.4 3.9 4.6 3.6
Agil. & allied
sector
100.0 100.0 100.0 100.0 3.0 3.2 3.5
Table 1: All India Share and Growth Rates of Major Crops/groups
Source: CSO (2011)
8/13/2019 HVA Seminar 2
7/43
Share in total cropped area (%) CAGR (%)
Crops TE 1983-84 TE 1993-94 TE 2009-10 1980s 1990s 2000s
Rice 22.81 22.94 22.62 0.6 0.78 -0.70
Wheat 13.24 13.20 14.24 0.36 1.40 1.30
Coarse
cereals
23.68 18.48 14.84 -1.49 -1.61 -2.14
Total
cereals
59.72 54.62 51.69 -0.29 -0.02 0.21
Pulses 13.36 12.56 12.08 0.09 -0.64 0.83
Foodgrains 73.09 67.18 63.78 -0.19 0.03 0.37
Oilseeds 9.77 14.80 14.34 3.02 -0.87 2.57
Sugarcane 1.97 2.12 2.48 1.35 1.91 1.29Fruits &
vegetables
2.91 3.82 5.10 3.38 2.5 5.3
Cotton 4.39 4.13 4.68 -0.97 2.18 3.12
Others 7.87 7.95 9.63 - - - - -
Table 2: All India Share and Growth Rates of Major Crops/ Groups
Source: Computed from Agricultural Statistics at a Glance.
8/13/2019 HVA Seminar 2
8/43
State Level growth pattern
o
High value agriculture is a major contributor to the economyin many states.
o The share of livestock sector increased from 24.7 percent in
TE 1998-99 to 27.2 percent in the TE 2009-10 at all Indialevel.
o The high value agriculture (fruits & vegetables and livestock
sector) is the largest contributor to state economy in hill stateslike Himachal Pradesh (72.4%) and Jammu & Kashmir
T bl 3 Sh f f i bl d li k (%) i l l f
8/13/2019 HVA Seminar 2
9/43
Fruits and veg livestock FV & livestock
States TE 1998-99 TE 2009-10 TE 1998-99 TE 2009-10 1998-99 2009-10
AP 10.3 14 22.7 34.3 33 48.3
Assam 26.1 22.9 17.8 20 43.9 42.9
Bihar+ JKh 24.6 32.3 30.5 33.8 55.1 66.1
Gujarat 11 11.8 23.9 23.9 34.9 35.7Haryana 3.3 6.5 31.2 31.2 34.5 37.7
HP 29.9 41.1 31.7 31.3 61.6 72.4
J & K 34 33.9 33.8 38.4 67.8 72.3
Karnataka 19.3 23.2 18.9 20.5 38.2 43.7
Kerala 14.8 22.1 28.2 22.3 43 4 44.4
M.P. +Chhattisgarh 5.2 9.9 22.4 26.9 27.6 36.8
Maharashtra 18.2 22.7 22.7 20.2 40.9 42.9
Orissa 33.6 40.5 9.6 14.8 43.2 55.3
Punjab 3.7 4.8 30.3 32.5 34 37.3
Rajasthan 1.5 1.4 30.5 35.8 32 37.2
Tamil Nadu 20.6 22.6 22.2 31 4 42.8 53.6
UP + UK 9.3 13 23.8 26.9 33.1 39.9
UP 9.3 12.4 23.8 26.8 33.1 39.2WB 25.3 35.5 26.3 22.9 51.6 58.4
Arunachal Pradesh 31.3 24.4 18 27.1 49.3 51.5
Manipur 23.7 29.5 26 27.7 49.7 57.2
Meghalaya 22.2 37.7 43.3 30.5 65.5 68.2
Mizoram 20.5 15.7 25.3 30.9 45.8 46.6
Sikkim 12.5 33.7 19.1 17.1 31.6 50.8
India 14.6 18.2 24.7 27.2 39.3 45.4
Table 3:Share of fruits vegetables and livestock sector (%) in total value of output
Source: CSO (2011)
8/13/2019 HVA Seminar 2
10/43
TRENDS AND COMPOSITION OF INDIAN
AGRICULTURAL TRADE
The exports of agriculture and food products increased fromabout Rs. 29.7 thousand crore in 2001-02 to Rs. 89.5 thousand
crore in 2009-10.
The share of high-value agricultural products in totalagricultural exports has increased from about 16.4 per cent.
Agricultural imports have increased significantly from 16.3
thousand crore in 2001-02 to 59.4 thousand crore in 2009-10.
Marine products, which constituted about 18.6 percent of total
agricultural exports in TE 2003-04, lost its share and
accounted from 9.4 percent of total agricultural exports in TE2009-10.
8/13/2019 HVA Seminar 2
11/43
Years Import (Rs. Crores) Export (Rs. Crores)
2001-02 16398 29782
2002-03 19102 38564
2003-04 20552 40983
2004-05 21250 41054
2005-06 20498 46789
2006-07 30152 61061
2007-08 30298 79851
2008-09 38564 83246
2009-10 59485 89548
Table 4: Indian Export and import trend of agricultural commodities
Source: Economic survey 2010-11
8/13/2019 HVA Seminar 2
12/43
Fig. 2: Trends in imports and exports of agricultural commodities and
share of HVA commodity exports in total agricultural export
Source: Economic Survey (2010-11 & earlier issues)
years
8/13/2019 HVA Seminar 2
13/43
Fig. 3: Graph showing commodity composition (%) of agricultural export
Source: Economic Survey (2010-11 & earlier issues)
0
2
4
6
810
12
14
16
18
20
7.2 6.95.8 5.7 5.4 5.4
4.9 4.6 4.65.3
6.4
19.1
3.7
10.39.7
6.2
33.9
6.6
7.6 7.3
20
2003-04 2009-10
8/13/2019 HVA Seminar 2
14/43
FACTORS BEHIND GROWTH OF HIGH-
VALUE AGRICULTURE1. Income growth:
Engels Law: states that as incomes rise, the share ofexpenditure allocated to food tends to decline.
Bennett's Law: states that as income rises, the share of the
food budget allocated to starchy staples declines relative to
more expensive sources of calories.
Years Percapita Income (Rs.) Percentage change
2004-05 24143
2005-06 27123 12.34
2006-07 31198 15.02
2007-08 35820 14.81
2008-09 40605 13.35
2009-10 46492 14.49
CAGR 14.12
Table 5: Percapita income in India from 2004 to 2009-10
Source :Central Statistical Organization
8/13/2019 HVA Seminar 2
15/43
2. Demographic factors
Demography is not a major factor, but it also affect the growth
of high-value agriculture.
Urban population prefers more of HVA products as compared
to rural population
In demography urban population plays an important role in
increasing the demand for HVA products.
Year Population Change
(%)
Urban population
(million )
Urban
(%)Avg Annual Exp
Growth rate percent
1951 361088 6244 1.72
1961 439235 21.64 7894 1.79 1.961971 548160 24.79 10911 1.99 2.22
1981 683329 24.65 15946 2.33 2.2
1991 846421 23.86 21761 2.57 2.14
2001 1028737 21.53 28536 2.77 1.95
2011 1210193 17.63 38994 3.22 1.64
CAGR 22.86 36.71
Table 6: Decadal Urban and total population of India
Source: CSO, indiastat.com
8/13/2019 HVA Seminar 2
16/43
3. Foreign Direct Investment (FDI) in HVA
Foreign investment in the food sector of developing countries
is rarely targeted at direct agricultural production.
The entrance of foreign companies into the agricultural sector
puts competitive pressure on local agribusiness companies.
Foreign direct investment can promotes the growth of high-
value agriculture in one of three ways
i. Link farmers in developing countries with high-value export
markets.
ii. FDI in the processing sector may create a new market for high-
value agricultural commodities.
iii. Foreign companies use their expertise and scale of operations to
reduce marketing margins in the processing and/or retail sector
8/13/2019 HVA Seminar 2
17/43
Country Amount
(million Rs)
Switzerland2782.10
USA2743.28
Germany2569.88
Mauritius2251.56
Korea1229.30
France524.07
UAE 477.48Saudi Arabia
386.90
Total12940
Table 7: FDI in High value agricultural products in India 2008-09
Source: ministry of food processing, GOI
21.5
21.2
19.86
17.4
9.5
4.053.69 2.99
Switzerland
USA
Germany
Mauritius
Korea
France
UAE
Saudi Arabia
Fig. 4 : share of different country in FDI
8/13/2019 HVA Seminar 2
18/43
8/13/2019 HVA Seminar 2
19/43
5. Trade policy
o Liberalization of trade Policies to promote trade.
o The lowering of import barriers in developed countries has
probably facilitated the growth of high-value exports such as
fish and seafood products.
Commodity Base year current projected
200405 201011 202021
Food grains 207.0 235.4 281.1
Milk and milk products 91.0 113.7 141.5
Egg (number billion) 44.1 60.8 81.4
Meat 6 8.3 10.9
Vegetables 90.6 108 127.2
Fresh fruits 52.9 67.3 86.2
Table 8: Demands for various high value food products ( Mt)
Source: State of Indian agriculture, National Academy of Agriculture Sciences, New Delhi
8/13/2019 HVA Seminar 2
20/43
FOOD CONSUMPTION TRENDS AND
DRIVERS OF HVA
The marked rise in availability of food and rising income have
been accompanied by changes in the composition of diet.
Dietary change appears to follow a pattern involving two main
stages (Kearney, 2010).
1. Expansion effect.
2. Substitution.
Recent data reveals that the share of food in the total consumer
expenditure has fallen.
8/13/2019 HVA Seminar 2
21/43
The average monthly per capita consumer expenditure
(MPCE) in 2009-10 stood at Rs. 1471.54 in urban and Rs.
772.36 in rural India.
The per capita total consumption expenditure in urban areas
was about 90 percent higher than that of the rural areas, while
in case of food expenditure it was about 44 percent higher.
Between 1987-88 and 2009-10, the highest increase in MPCE
was observed in non-food expenditure in both rural and urban
areas
In case of urban households, the highest increase in MPCE
was on vegetables (5.9 times), followed by beverages, etc. (5.4
times), fruits and eggs, fish and meat by over 5 times.
8/13/2019 HVA Seminar 2
22/43
1987-88 1993-94 1999-00 2005-06 2009-10
RURAL
Cereals & their substitutes 41.54 68.40 108.11 106.72 124.56
Pulses & their products 6.27 10.70 18.50 20.02 23.70
Edible oils 7.88 12.50 18.16 25.46 33.29
Milk & milk products 13.63 26.70 42.56 50.94 60.18
Egg, fish & meat 5.11 9.40 16.14 24.31 26.31
Vegetables 8.23 17.00 28.98 37.88 48.53
Fruits & nuts 2.57 4.90 8.36 11.75 13.56
Fruits & Vegetables 6.18 11.70 20.38 26.10 33.60
Beverages, etc. 9.41 16.50 27.61 29.97 31.31
Total Food 100.8 (63.8) 177.8 (62.14) 288.80 (59.40) 333.15 (53.34) 395.04 (53.6)
Non-Food 57.28 108.3 197.36 291.38 341.03
Total expenditure 158.10 286.1 486.16 624.53 736.07
URBAN
Cereals & their substitutes 37.1 64.60 105.92 110.31 131.13
Pulses & their products 8.44 13.90 24.25 25.57 31.20
Edible oils 13.2 20.10 26.81 35.02 46.43
Milk & milk products 23.8 44.90 74.17 84.94 106.64
Egg, fish & meat 8.85 15.50 26.78 32.28 39.47
Vegetables 13.1 25.00 43.90 49.73 64.34
Fruits & nuts 6.27 12.20 20.68 25.52 31.02
Fruits & Vegetables 16.8 33.00 54.28 68.32 85.75
Beverages, etc. 12.0 21.10 34.05 36.13 38.63
Total Food 139.7 (56) 250.30 (53.9) 410.84 (48.05) 467.82 (39.93) 574.61 (40.7)
Non-Food 110.1 214.00 444.08 702.78 889.11
Total expenditure 249.9 464.30 854.92 1170.60 1463.72
Table 9: Changes in expenditure on food consumption(Rs./capita/month at current prices)
Source: Computed from NSS Report : Household Consumer Expenditure in India, 2010-11
8/13/2019 HVA Seminar 2
23/43
Fig. 5: Changing Dietary Consumption Patterns (%) in India
0
10
20
30
40
50
60
70
Cereals Milk Egg, fish &meat
F&V Beverages Total Food Non-Food
41.2
13.5
5.1
10.7
6.1
63.8
36.232
15.3
7.3
14.9
7.8
53.3
46.7
29.2
16.1
6.5
14.510.5
53.6
46.4
1987-88 2005-06 2009-10
0
10
20
30
40
50
60
Cereals Milk Egg, fish &
meat
F&V Beverages Total Food Non-Food
26.6
17.1
6.3
13.9 12
55.9
44.1
23.6
18.2
6.9
16.114.6
40
60
22.319.1
6.6
15.7 15.5
40.1
59.3
Source: NSSO (2011).
Rural (%)
URBAN (%)
8/13/2019 HVA Seminar 2
24/43
ENGEL MODEL OF FOOD
CONSUMPTION AND EXPENDITURE
while food demand is expected to increase with income, thefood share of total budget is expected to decline as incomeincreases.
Rising income and improved access to greater variety of foodis expected to change the food consumption patterns.
Indian households tend to consume more high value productshas their incomes rise, while their consumption of traditional
staple grains remains stable or declines.
Food is necessity that accounts for about half of totalconsumption expenditure of poor households, but share offood spending declines as households gain more income.
8/13/2019 HVA Seminar 2
25/43
Source : Computed from NSS Household Consumer Expenditure in India 2007-08
Fig. 6: Importance of food expenditure and HVA expenditure
8/13/2019 HVA Seminar 2
26/43
The Engel curve expressed as the relationship between
household expenditure on an item and household income.
Log-log inverse function is used for estimation.
Consumer response to changes in factors affecting demand is
measured by elasticity.
i. Income elasticity
ii. Price elasticity
Poor households exhibit a greater responsiveness, as given by
the expenditure elasticity, to change in expenditure levels
compared with high-expenditure households.
For all income levels, households indicate comparatively lower
income elasticities for staple products than for high-value
products in both rural and urban areas.
8/13/2019 HVA Seminar 2
27/43
Table 10: Expenditure shares and expenditure elasticity of food
sub-categories in rural households
Source: Computed from NSS Report : Household Consumer Expenditure in India, 1999-00 &2007-08
Low
income
middle
income
High
income
All
classes
Low
income
middle
income
High
income
All classes elasticity
Budget share (%) Elasticity 2007-08 1999-00
Cereals 43.0 34.3 24.1 30.7 0.47 0.30 0.14 0.25 0.29
Milk & milk
products
6.2 12.1 19.7 14.9 3.01 1.93 0.88 1.57 1.20
Egg, fish &
meat
4.7 6.0 7.6 6.5 1.61 1.23 0.85 1.10 0.97
Fruits &
Vegetables
14.9 14.6 14.6 14.6 0.90 0.77 0.64 0.72 0.65
Vegetables 13.7 12.7 10.9 12.0 0.81 0.60 0.39 0.53 0.43
Fruits 1.2 1.9 3.7 2.6 2.15 1.75 1.36 1.62 1.59
Total Food 60.9 57.8 44.1 52.3 1.00 0.80 0.61 0.74 0.71
8/13/2019 HVA Seminar 2
28/43
Table 11: Expenditure shares and expenditure elasticity of food
sub-categories in urban households
Source: Computed from NSS Report : Household Consumer Expenditure in India, 1999-00 & 2007-08
Low
income
middle
income
High
income
All
classes
Low
income
middle
income
High
income
All classes
Budget share (%) Elasticity 2007-08 1999-00
Cereals 33.1 25.1 16.3 22.4 0.38 0.25 0.16 0.22 0.25
Milk & milk
products
11.4 17.6 20.8 18.3 1.77 1.07 0.54 0.55 0.53
Egg, fish &
meat
6.4 7.2 6.5 6.8 1.19 0.72 0.38 0.88 0.81
Fruits &
Vegetables
14.7 15.1 15.5 15.2 0.88 0.60 0.57 0.65 0.61
Vegetables 12.7 11.9 9.6 11.0 0.78 0.52 0.33 0.44 0.40
Fruits 2.0 3.2 5.9 4.2 1.69 1.30 1.02 1.19 1.03
Total Food 56.4 47.6 30.4 39.5 0.81 0.66 0.56 0.62 0.57
GROWTH IN FRESH FRUITS AND
8/13/2019 HVA Seminar 2
29/43
GROWTH IN FRESH FRUITS AND
VEGETABLES IN INDIA
1. Fruits production:
The production of fruits during 2010-11 was about 75.8
million tones.
It is interesting to note that area expansion has been a major
contributor to increased production.
Variability in area and production of fruits was higher in
2000s than 1990s.
Area and production shows a positive trend with CAGR of
4.40 and 4.48 per cent respectively.
Table 12: Area production and productivity of fresh fruits in India
8/13/2019 HVA Seminar 2
30/43
Table 12: Area production and productivity of fresh fruits in India
Year Area ('000 ha) Production ('000) Productivity (Tons/ha)
1991-92 2874 28632 10
1992-93 3206 32955 10.3
1993-94 3184 37255 11.7
1994-95 3246 38603 11.9
1995-96 3357 41507 12.4
1996-97 3580 40458 11.3
1997-98 3702 43263 11.7
1998-99 3727 44042 11.8
1999-00 3797 45496 12
2000-01 3869 43138 11.1
2001-02 4010 43001 10.7
2002-03 3788 45203 11.9
2003-04 4661 45942 9.9
2004-05 5049 50867 10.1
2005-06 5324 55356 10.42006-07 5554 59563 10.7
2007-08 5857 65587 11.2
2008-09 6101 68466 11.2
2009-10 6329 71516 11.3
2010-11 6625 75825 NA
CAGR 4.40 4.28 -0.19Source: indiastat.com
Fi 7 P d ti (%) f f it i I di b t t
8/13/2019 HVA Seminar 2
31/43
0
10
20
30
40 36.9
20.1
12.4
4.93.2 3 2.7 1.9 1.7 1.3 0.7
11.211.5
37.2
14.9
1.53.3 4.4
1.4 1.42.4 2 1.2
18.9
Production (%) Area (%)
Fig. 8: Chart showing percent share of different fruits to total area
Source: Indian Horticulture Database, National Horticulture Board, MoA
16.9
15.6
11.1
8.98.7
6.2
5
4.1
3.7
3.2
2.3 2.2
2.2
9.8
APMaharastraTNGujaratKarnatakaU.P
BiharWBKeralaM.PAssamOrissaJ&kOthers
Fig. 7: Production (%) of fruits in India by states
8/13/2019 HVA Seminar 2
32/43
2.Vegetable production:
o With increase in the demand for vegetables the production of
vegetables has seen a substantial increase in the recent years.
o Productivity growth is better than fruits productivity withaverage per annum growth of 1.7 percent since 1991-92.
o Uttar Pradesh was the largest producer of vegetables in Indiawith share of 16.2 percent in national production in the TE2011.
o Potato is most widely grown vegetable in the country both interms of acreage and production.
o Area and production of vegetables witnessed an increasing
trend with CAGR of 2.75 and 4.47 per cent respectively
Table 13: Area production and productivity of vegetables
8/13/2019 HVA Seminar 2
33/43
year Area ('000 ha) Production ('000) productivity (MT/ha)
1991-92 5593 58532 10.5
1992-93 5045 63806 12.6
1993-94 4876 65787 13.5
1994-95 5013 67286 13.4
1995-96 5335 71594 13.4
1996-97 5515 75074 13.6
1997-98 5607 72683 13
1998-99 5873 87536 14.9
1999-00 5991 90823 15.2
2000-01 6250 93849 15
2001-02 6156 88622 14.4
2002-03 6092 84815 13.9
2003-04 6082 88334 14.5
2004-05 6744 101246 15
2005-06 7213 111399 15.42006-07 7581 114993 15.2
2007-08 7848 128449 16.4
2008-09 7981 129077 16.2
2009-10 7985 133738 16.7
2010-11 8217 137687
CAGR 2.75 4.47 1.65
Table 13: Area, production, and productivity of vegetables
Source : indiastat.com
8/13/2019 HVA Seminar 2
34/43
4
4.9
6.5 5.5
5.7
16.2
13.3
16.1
2.7
3.4 6.6
4.35.5
2.9 2.5 APMaharastra
TN
Gujarat
Karnataka
U.PBihar
WB
Kerala
Assam
Orissa
Others
MP
Haryana
punjab
Fig. 9 Production (%) of vegetables in India by states
0
5
10
15
20
25
30
35
25.924.3
10.28.6
7.6 7.35 4.7
3.42.3
0.9
22.8
30.3
107.4 7.2
3.4 3.7 45.3
4.2
1.6
production (%) Area(%)
Source: National Horticulture Board, MoA
Fig. 10: Production of vegetables in India by states
8/13/2019 HVA Seminar 2
35/43
3. Livestock production (including fishery)
India ranks first in the world in milk production.
The per capita availability of milk has also increased from 112 gramsper day in 1968-69 to 281 grams in 2010-11.
The egg production during 2010-11 was 63020 million in numbers.
The fisheries sector contributed 0.7 per cent of total GDP at factor cost.
We are first in cattle, buffalo and goat in the world, housing16.10, 56.50
and 16.50 per cent, respectively, of worldspopulation.
In sheep and poultry, we are 5th in the world.
The contribution of livestock sector to agriculture has also increasedfrom 19.8% in 1991 to 25% in 2009-10.
8/13/2019 HVA Seminar 2
36/43
Years Milk (mt) Eggs
(million no.)
Wool
(million Kgs)
Fish (Lt) Meat (mt)
2000-01 80.6 36632 48.4 5656 1.9
2001-02 84.4 38729 49.5 5956 1.9
2002-03 86.2 39823 50.5 6200 2.1
2003-04 88.1 40403 48.5 6399 2.1
2004-05 98.5 45201 44.6 6304 2.2
2005-06 97.1 46235 44.9 6572 2.3
2006-07 100.9 50663 45.1 6869 2.3
2007-08 104.8 53581 44 7127 3.7
2008-09 108.6 55395 42.9 7608 3.8
2009-10 112.5 59844 43.2 7850 4
2010-11 121.84 63020 42.9 8290 4.83
Table 14: Production of major livestock products and fish in India
Source : Department of animal husbandry, dairy and fishery, 2010-11
SMALL FARMERS AND HIGH VALUE
8/13/2019 HVA Seminar 2
37/43
SMALL FARMERS AND HIGH VALUE
AGRICULTURE
The share of small and marginal farmers has increased from
69.7 percent in 1970-71 to about 83 percent in 2009-10 and
they cultivate nearly 41 percent of the arable land.
Less than 1 percent of the farmers have operational land
holding above 10 ha and account for 11.8 percent of the total
cultivated land.
The average farm size in the country has declined from 2.3 ha
in 1970-71 to 1.3 ha in 2009-10.
This reduction in farm size has been higher in case of medium
and large farmers
8/13/2019 HVA Seminar 2
38/43
0
10
20
30
40
50
60
70
80
90
100
1970-70 1980-81 1990-91 2000-01 2009-10
69.75 73.6478.24 80.98 82.9
16.8116.21
15.5416.21 15.96
13.44 10.156.22
2.81 1.14
>4 ha
2-4 ha
8/13/2019 HVA Seminar 2
39/43
Smallholders' strength is their larger endowment of familylabour.
Small farmers control 61% of the area under vegetables and52% under fruits, as compared to their share of 44% in thetotal operated area.
There are evidences of small farms being more efficient than
large farms.
0
10
20
30
40
50
60
70
80
sheep and goat dairy animals vegetables fruit area operated area
77.8
72.7
61
51.9
44.2
Fig. 12: Share of smallholders in horticulture area and in animal population
Source: GOI (2011)
%
8/13/2019 HVA Seminar 2
40/43
POLICY IMPLICATION
Supported by markets and adequate infrastructure.
Need to increase investment in public infrastructure and
processing and to promote institutions.
The financial and insurance institutions should increasingly
focus on high-value agricultural projects.
Appropriate quality testing and certification procedures will
have to be put in place.
8/13/2019 HVA Seminar 2
41/43
Setting up of a Livestock and Poultry development board with
required autonomy to oversee, monitor, and fund research and
developmental programme is desirable.
Mariculture technologies need to be adopted with due
consideration to the prevalent conditions, suitable species and
market demands.
It is necessary to equip the existing fish landing centers and
harbors with proper facilities.
Different models of domestic markets with suitable cold
chains must be developed.
CONCLUSION
8/13/2019 HVA Seminar 2
42/43
CONCLUSION
HVA can be looked as means to ensure food & nutrition security
as well as higher profitability.
This shift in dietary patterns across states and income classes is
also observed.
Trade in high-value products is increasing.
For all income levels, households indicate comparatively lower
income elasticities for staple products than the HVA products.
The share of high-value commodities/products in total food
consumption has been increasing.
Rising demand for high-value commodities
8/13/2019 HVA Seminar 2
43/43