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Agrarian Economy of Telangana
A Amarender ReddyDirector (Monitoring and Evaluation)
National Institute of Agricultural Extension Management MANAGE, Hyderabad-30
Theme Paper Presented at Telangana Economic Association
Outline • Introduction• Methodology• Telangana macro-economic trends• Population trends• Employment situation in state• Changing relationship between Farm size and
profitability• Cropping pattern change• Live Stock• Trends in Input use• Credit and indebtedness• Conclusion
The specific objectives of the paper are:
To understand the macro-level changes in agrarian
economy of Telangana state
To analyse the growth in crop and livestock sector
and also changes in input composition at district level
over the past decade;
To map out the strategies for achieving inclusive and
sustainable agriculture growth in Andhra Pradesh
Methodology The data was collected from various government statistical publications. Mainly
season and crop reports of Directorate of Economics and Statistics, and Statistical
Abstract of Government of Andhra Pradesh and Situation Assessment Survey of
National Sample Survey Organisation have been used.
The data for the study mainly covers from 1990 to 2015-16 depending on the
availability on the various parameters.
This study covers changes in land use pattern, farmer’s situation in terms of sources
of incomes, crop returns and indebtedness.
The study also covers trends in production of food crops, non-food crops, horticultural
crops and livestock products. Recently, there is faster growth in area under fruits,
vegetables, palm oil, spices and other high value crops, the extent of spread of area
and its implications on farmer’s incomes were examined.
It is also projected that the future growth of these crops will be higher than that of the
traditional crops.
Results
61% live in rural areas.
13% SGDP from agriculture, 61% services, 22% industry.
The crop sector and livestock contribution 5.9% of SGDP each.
Within crop sector horticulture contributes to 40%.
Small and marginal farmers share was 86% in total cultivators
proletarianization of small farmers
Informal tenancy farmers
Farm size and profitability
Indebtedness
Telangana macro-economic trends1. The gross state domestic product increased significantly over the last ten years
from 2004-05 to 2015-16 from 90 thousand crores to 237 crores in constant prices.
2. Year-to-year growth is not stable.
Sector 2004-5 2005-6 2013-14 2014-15 2015-16
Share of agril. 18 19 17 15 13
GSDP (Rs.1000 Crore) 90 104 206 217 237
Year-on-year growth 15.9 4.8 5.3 9.2
Source: Socio-Economic Outlook, 2015; GSDP is at constant prices of 2004-05
Share of agriculture in GSDP of Telangana
Contribution of sub-sectors to Agricultural GSDP
% share in GSDP Growth (%)
Sector 2011-12 2014-15 2015-16 2012-13 2013-14 2014-15 2015-16
Crops 9.6 7.8 5.9 8 2 -14 -18Livestock 5.6 5.7 5.9 8 2 8 12Forestry 0.6 0.5 0.4 -1 -3 1 -3Fishing 0.4 0.5 0.6 10 14 9 18Agril. and allied 16.1 14.5 12.9
9 2 -5 -5Secondary 27 22 23 -12 5 4 9Tertiary 53 59 61 8 9 12 11All 100 100 100 2 6 8 8
Source: Socio-Economic Outlook, 2015-16, Telangana
Population trends
Total population
( lakhs)
Growth Rate
Rural Population
(lakh)
Cult. (lakh)
Agril. labor(lakh)
Total (cult.+ labor)
(lakh)
1981202 28 151(75%) 31 28 59
1991261 29 182(70%) 34 40 74
2001310 19 211(68%) 33 32 65
2011350 14 214(61%) 30 46 76
Population dependent on Agriculture (proletarianization of small farmers)
Source: Socio-Economic Situation Outlook, 2016
District growth rate of GDDP from
2005-06 to 2013-14
Percapita income in 2014-15
(Rs.1000)
Urbanization
(%) % increase
in urban population between 2001 and
2011
% change in rural
population between 2001
and 2011
Share of agriculture in DDP in 2003-04
crop Animalrearing
Agril
Adilabad 6 77 28 16 9 20 4 24Khammam 8 103 23 29 4 15 6 21Warangal 8 81 28 60 -4 22 5 27Karimnagar 9 90 25 40 1 17 6 23Nizamabad 9 79 23 39 2 13 4 17Hyderabad 10 294 83 38 -4 Mahbubnagar 10 80 15 64 10 16 11 26Nalgonda 10 114 19 54 1 14 8 22Medak 12 122 24 89 1 12 7 19Rangareddy 12 180 4 10 14Telangana
129 39 41 2
District level indicators
Source: Statistical Abstracts, Telangana *Hyderabad included Rangareddy
Sector /status Rural Urban Total
Labour force participation rate (LFPR)
76 52 67
Worker population rate (WPR) 75 48 65
Unemployment rate 1 7 3
Sectoral distribution of workers
Agriculture and allied 74 7 56
Industry 13 31 18
Services 13 62 27
Total 100 100 100
Sector wise employment in Telangana in 2013-14 (%)
Source: NSSO 70th round
Cropping Pattern Change
2001
-02
2002
-03
2003
-04
2004
-05
2005
-06
2006
-07
2007
-08
2008
-09
2009
-10
2010
-11
2011
-12
2012
-13
2013
-14
2014
-1525
29
33
37
41
Share of non-food crops in cropped area
Source: Population Census
Hyde
raba
d
Rang
ared
dy
Med
ak
Adila
bad
Niza
mab
ad
War
anga
l
Karim
naga
r
Nalg
onda
Kham
mam
Mah
bubn
agar
Tela
ngan
a
35
40
45
50
55
-2
0
2
4
6
8
36
41
48 4849 49
50 50 5051
47
6.6
1.3
-0.9
3.1
0 0.3 0.7 0.8
2.2
-0.5
1.4
WPR 2011 and Change over 2001
WPR 2011 Chage between 2001 and 2011
WPR
201
1 (%
)
Chan
ge o
ver 2
001
Source: Population census, 2011
Number of cultivators and Agricultural labourer in lakhs (2011)
Cultivators Agrillabour Cult. +
agril. LabourRatio of
labour to cultivator Persons
Female to Male ratio Persons
Female to Male ratio Persons
Female to male ratio
Rangareddy 3 0.6 4 1.3 7 0.9 1.2Adilabad 4 0.6 5 1.3 9 0.9 1.4Mahabubnagar 6 0.6 9 1.5 15 1.1 1.6Medak 4 0.6 6 1.3 9 0.9 1.6Nizamabad 3 0.6 5 1.0 7 0.8 1.6Warangal 4 0.6 8 1.6 12 1.1 1.9
Karimnagar 4 0.6 8 1.2 11 1.0 2.1Nalgonda 3 0.5 9 1.5 12 1.1 2.6
Khammam 2 0.5 8 1.2 10 1.0 3.5Telangana 32 0.6 60 1.3 92 1.0 1.9
District Cultivators Agricultural labour Cultivators plus agricultural labourer
Male Female Male Female Male Female
Medak -12 -7 24 15 4 8
Mahabubnagar -1 9 28 15 12 13
Ranga Reddy 5 7 39 17 19 13
Nalgonda -20 -23 40 22 9 11
Warangal -13 -14 29 23 5 12
Karimnagar -18 -20 38 24 8 9
Nizamabad -13 -11 37 26 10 11
Khammam -22 -20 34 30 11 20
Adilabad 4 7 45 39 21 27Telangana -10 -8 34 23 10 13
% increase in cultivators and agricultural labourers between 2001 and 2011
1991 2011
District Marginal Small Small and marginal farmers
Marginal Small Small & marginal farmers
Average land
holding size (ha)
Adilabad 43 22 65 50 28 78 1.4
Mahaboob-nagar 41 24 65 58 25 83 1.23
Nalgonda 46 23 69 59 25 84 1.19
Rangareddy 42 24 66 58 26 84 1.22
Khammam 47 25 72 62 23 85 1.14
Warangal 56 24 80 67 21 88 1.01
Karimnagar 61 21 82 67 22 89 0.96
Medak 55 23 78 68 22 90 0.97
Nizamabad 61 21 82 67 24 91 0.92
Telangana 51 23 74 62 24 86 1.12
Share of number of small and marginal farmers (% to total farmers)
1991 2011
District Marginal Small small and marginal
Marginal Small small and marginal
Adilabad 10 17 27 17 28 45
Mahabubnagar 10 16 25 22 29 51
Hyderabad 9 15 24 24 29 53
Khammam 13 20 33 26 28 53
Nalgonda 11 16 27 23 30 53
Warangal 19 25 43 29 30 58
Medak 16 20 36 30 31 61
Karimnagar 21 23 43 31 32 63
Nizamabad 21 23 43 34 36 70Telangana 14 19 32 25 30 55
% area share of small and marginal farmers (wide spread distress)
Changing relationship between Farm size and profitabilityFarm size and profitability relationship (20013-14) for Telangana state (per hectare)
Source: Calculated from Cost of Cultivation Scheme unit data
CropFarm size
groupYield(qtl)
Cost (Rs.1000)
Gross Return(Rs.1000)
Net return(Rs.1000)
Fertilizer(kg)
Labour(days)
Animal labour(days)
Machine labour(hours)
Cotton Small 16 68 67 -1 220 229 7 21Medium 15 66 64 -1 225 256 6 18Large 17 65 71 5 229 255 6 21All 16 66 68 2 225 247 6 20
Maize Small 57 65 72 7 233 182 6 16Medium 54 59 70 11 219 170 4 13Large 56 59 71 13 208 162 5 16All 55 60 71 11 217 169 5 15
Paddy Small 54 68 77 9 237 153 2 16Medium 55 65 78 13 238 131 2 14Large 56 62 78 16 225 141 1 17All 55 65 78 13 232 143 2 16
State self employed
regular wage/ salaried employment
Casual wage
labour in public works
casual labour in out of labour force
all
agril. non- agril.
agril. non- agril.
agril. non- agril.
AP 83.3 0.2 0.2 0.4 0.4 13.3 0.4 2.0 100
Telangana 91.4 2.8 0 0.2 1.9 1.2 1.6 1.4 100
All India 84.9 1 0 0.5 0.8 4.2 3.1 5.2 100
% distribution of persons who were self-employed in agriculture during july-Dec 2012 by principal status during Jan-Jun 2013 for AP and Telangana
Source: NSSO 70th round
AP Cultivation livestock other agricultural activity
non-agricultural enterprises
wage/ salaried employment
others
AP 592 46 16 35 280 31
Telangana 868 18 5 18 62 29
India 635 37 11 47 220 51
State Number per 1000 agricultural households engaged in
Cultivation
livestock other agricultural activity
non-agricultural enterprises
wage/ salaried
employment
others
AP 903 570 82 161 682 234Telangana 974 519 65 123 575 293All India 926 719 74 147 495 191
Per 1000 distribution of agricultural households by source of income during last 365 days for Telangana and AP states (2012-13)
Per 1000 distribution of agricultural households by major source of income
size class of land possessed
(ha.)
income from
wages
Net receipt from
cultivation
net receipt from farming
of animals
net receipt from non-
farm business
total income
total consumption expenditure
Net investment in
productive asset
< 0.01 1507 641 1390 549 4087 6646 -126
0.01 - 0.40 618 965 2186 28 3797 4324 343
0.410-01.00 1911 3147 167 184 5409 4688 718
1.01-2.00 1182 4390 464 254 6290 4917 220
2.01-4.00 1112 5970 -17 535 7600 5696 647
4.01-10.00 1861 11474 -326 31 13040 6781 760
10.00+ 736 5307 1019 1531 8593 8507 1403
All size 1450 4227 374 260 6311 5061 546
Average monthly income and consumption expenditure (Rs.) per agricultural household by farm size 2012-13
Source: NSSO 70th round
Land use
Out of the total geographical area of 112 lakh ha, net cultivated area was 37.3%, current
fallows 14%, other fallows 7.3%, forest covers 22.7% of area, area put to non-
agricultural use 8%, barren and uncultivable land 5.4% and remaining 5.3% is
cultivable waste, permanent pasture, and miscellaneous tress in 2015-16(Figure 1).
Over the years, land put to non-agricultural uses increased at the cost of net cropped
area and waste lands
1966
1967
1968
1969
1970
1971
1972
1973
1974
1975
1976
1977
1978
1979
1980
1981
1982
1983
1984
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2016
05
101520253035404550
Land Use Pattern
Non_agril land as % of TGA Fallow % of TGANCA as % of TGA Forest as % of TGA
District forest area
barren and uncultivated
area
non-agril. Use
cultivable waste
current fallow
other fallow
NCA Total Cropping Intensity
Rangareddy 10 4 15 3 20 12 31 100 111
Khammam 42 6 9 1 6 2 31 100 112Adilabad 43 3 4 1 7 6 35 100 108
Warangal 29 4 6 1 8 10 36 100 129
Nizamabad 21 6 12 2 12 8 37 100 155
Nalgonda 6 9 9 2 19 10 41 100 125Karimnagar 21 8 8 2 11 2 43 100 137
Mahabubnagar 14 5 5 2 16 10 47 100 113
Medak 9 5 8 2 18 6 49 100 117Telangana 22.7 5.4 7.9 1.6 12.5 7.2 39 100 121
Land use by district (2014-15)
Area (lakh ha) CV (%) Area (lakh ha) CV(%)1991 -2003 2004-2016
0
5
10
15
20
25
30
35
40
45
35
8
40
1012 11
13
18
Variability in season wise cropped area
KharifRabi
Medak
Rangareddy
Nizamab
ad
Karimnaga
r
Khammam
Telangana
Mahabubnag
ar
Warangal
Nalgonda
Adilabad
0
10
20
30
40
50
60
70
80
30 3133
35
41 42 43 4345
70
Share of non-food crop area (%) in 2014-15
Crop Adilad Nizabad Karimgar Medak Ranga-reddy
Mahabnagar Nalgda Wargal Khamam Telangana lakh ha
% to GCA
Rice 4 16 17 9 6 7 19 10 14 100 16.0
27.9
Maize 3 11 13 19 16 16 0 15 6 100 8.0 14.0
Pulses 14 7 4 14 24 19 5 8 5 100 4.8 8.4
Food grain
6 13 13 13 12 12 11 11 10 100 30.1
52.4
Groundnut
1 1 5 0 12 48 10 18 5 100 1.4 2.4
Soybean 38 47 5 8 1 0 0 0 0 100 3.1 5.4
Oilseed 23 31 6 7 4 19 3 5 2 100 5.5 9.6
Chillies 2 2 5 1 2 8 5 32 45 100 0.9 1.5
Turmeric 14 33 18 4 15 0 0 16 0 100 0.6 1.0
Sugarcane
0 16 4 55 5 1 1 0 16 100 0.5 0.9
Mango 6 2 15 8 13 8 7 10 33 100 1.1 2.0
Cotton 18 1 11 9 9 10 15 14 13 100 18.8
32.7
Total 12 11 12 11 10 11 11 12 11 100 57.4
100
Share of major crops in area by district (2015-16)
Crop Adilabad Nizamabad Karimnagar Medak Rangareddy Mahabubnagar
Nalgonda Warangal Khammam Telangana (kg/ha)
Rice -22 14 11 2 -19 -19 0 -4 -2 3211
Maize -12 48 50 -47 -11 -43 -43 47 47 3338
Reggram 66 -47 46 -36 -19 -9 -4 3 5 495
Pulses 35 -3 24 -11 -17 3 -37 -12 -8 644
food grain -38 28 38 -25 -28 -36 8 25 16 2763
Groundnut 0 49 8 -38 -16 7 -35 -5 -2 1907
Soybean -23 27 -4 -7 1081
Oilseed -43 -8 -17 -21 -7 6 -6 12 NA 1442
Chillies -66 7 -23 -87 4 -1 -11 -14 24 3456
Turmeric 30 -24 26 -52 -31 0 1 1 4975
Sugarcane -1 0 -8 3 -14 -6 -5 -5 8783
Mango -54 0 14 0 0 -42 162 -28 -16 6055
Cotton -11 -44 29 -17 -18 -18 -22 26 45 360#
Percent of difference in district yield compared to state average (2014-15)
*mainly due to palm oil;# lakh bales of 170 kg
Horticultural crops Area Production
Fruits 54% 55%
Vegetables 22% 36%
Plantation crops 4% 1%
Spices 19% 8%
Flowers 1% 0.2%
Total 7.01 lakh ha 74.79 milion tonnes
Horticultural crops in area and production (2015-16)
Source 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15
Tanks11 3 10 7 7 9 5
Canals
14 8 17 15 5 15 10Wells
73 86 70 75 86 74 84Other Sources 3 3 3 2 2 2 2Total
100 100 100 100 100 100 100Area (lakh) 27 21 30 29 26 32 25
Sources of irrigation (% of gross irrigated area)
% of Net Irrigated Area GIA*100/NIA District Tanks Canals Tube wells Dug
wellsOther
sourcestotal Irrigation
IntensityNIA as % of NCA
Adilabad 10 6 62 19 2 100 137 15Rangareddy 1 1 94 2 4 100 133 28Mahabubnagar 2 12 80 2 5 100 133 29Medak 1 1 93 5 1 100 148 31
Khammam 19 29 27 21 5 100 123 44Nalgonda 5 26 56 8 4 100 152 44Nizamabad Neg. 7 91 Neg. 2 100 184 57Warangal 6 3 41 49 1 100 137 60Karimnagar 6 Neg. 16 78 Neg. 100 159 62Telangana 6 10 55 27 3 100 146 39
Sources of irrigation (2014-15)
Crops 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15Rice 51 64 60 54 62 55Maize 8 6 8 10 8 10Total Pulses 1 1 1 1 1 1Total Food grains 62 72 69 65 72 67Chillies 4 2 3 3 2 3Turmeric 2 2 2 2 2 2Sugarcane 3 3 3 3 2 3Total Food Crops 79 85 84 81 84 82Non-Food Crops
Groundnut 8 6 5 7 6 6Total Oil Seeds 12 7 7 9 8 8Cotton 8 7 8 9 7 8Total Non Food Crops
21 15 16 19 16 18
Gross Area Irrigated 100 100 100 100 100 100
Share of gross irrigated area under major crops
District ground water net irrigated area (1000 ha)
% area covered under micro irrigation from 2003-04 to 2013-14 (ha)Drip Sprinkler Total Balance Potential
Area
Adilabad 61 27 28 56 44
Mahabubnagar 205 39 15 54 46
Medak 131 36 15 51 49
Rangareddy 72 33 17 49 51
Nalgonda 186 41 5 47 53Khammam 94 26 10 36 64
Nizamabad 170 15 4 19 81
Warangal 257 13 4 17 83
Karimnagar 311 9 3 12 88
Total 1486 24 8 32 68
Coverage under micro-irrigation
Species livestock population (in million) % change over 19871987 2003 2012
Cattle 7 5 5 -25adult female cattle 2 1 2 10Buffaloes 3 4 4 46adult female buffalo 1 2 3 102Sheep 3 11 13 332Goat 2 3 5 132Total livestock 15 24 27 82Poultry 17 41 69 314
Livestock population since 1987 to 2012
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
1.5
3.5
5.5
7.5
9.5
11.5
13.5
Milk (MT); 4.4
Eggs(billion Nos); 11.2
Meat (lakh tonnes); 5.4Wool (million
Kg); 4.6
Livestock production
District Cattle Buffalo Sheep and Goat
Poultry Cattle Buffalo Sheep and Goat
Poultry
Population (1000) Change over 1966 (%)
Karimnagar 403 471 2050 5325 -49 87 174 606
Rangareddy 338 299 1145 15157 -21 81 195 4173
Nalgonda 496 788 2440 9052 -44 103 198 1128
Medak 442 436 1653 25820 -28 125 264 6869
Khammam 591 571 973 2214 -11 93 264 256
Warangal 586 489 2196 5251 -26 78 303 841
Mahbubnagar 823 415 4416 12714 -7 69 415 2369
Nizamabad 335 400 1398 3581 -22 163 428 1301
Adilabad 975 320 1242 1839 55 198 548 456Telangana 4990 4189 17513 80953 -18 102 286 1700
District wise composition of livestock population, 2012
1971 1981 1991 2001 2010 1971 1981 1991 2001 2010Female Male
0.0
50.0
100.0
150.0
200.0
250.0Wage rates of agricultural workers
Karimnagar Hyderabad Nalgonda Nizamabad Medak
Mahabubnagar Warangal Khammam Adilabad
Trends in Input use
Labour
Number of pump sets (1000)
District 1972 2003 2011% change over 2003
Mahabubnagar 14 232 200 -14
Rangareddy 11 90 111 23Medak 12 118 200 69Warangal 16 153 265 73Karimnagar 35 172 311 81Nalgonda 18 140 256 83Khammam 4 46 102 122Nizamabad 8 78 215 176Adilabad 3 34 100 194Telangana 121 1063 1760 66
District 2014-15 2013-14
Agril All Agril All
Rangareddy 165 1348 162 1257
Khammam 173 600 168 571
Adilabad 188 554 166 523
Karimnagar 275 802 243 732
Warangal 368 738 373 703
Mahbubnagar 482 1018 502 942
Nizamabad 547 883 469 779
Medak 572 1644 516 1457
Nalgonda 589 1453 585 1352
Telangana 314 1320 245 1084
District wise percapita consumption(units) of electricity
Tonnes Kg/ha of NCA
District Nitrogen Phosphorous Potash Total Nitrogen Phosphorous Potash Total
Karimnagar12579 34966 12165 59710 25 68 24 117
Mahbubnagar83514 33352 7619 124485 96 39 9 144
Adilabad65363 15789 1870 83022 117 28 3 149
Medak55797 12098 3043 70938 118 26 6 150
Khammam76753 23883 9521 110157 189 59 23 271
Nalgonda112831 36930 12004 161765 193 63 21 277
Warangal108636 27802 9723 146161 236 60 21 317
Nizamabad81227 19268 5415 105910 280 66 19 365
Rangareddy120239 64120 21038 205397 524 280 92 895
Telangana716939 268208 82398 1067545 164 61 19 244
Fertilizer use in 2014-15
Rural Average value of
assets (Rs.lakh)
Incidence of
indebtedness (in%)
Amount of debt
(Rs.)
Debt-Asset Ratio
Telangana
Cultivators 13.89 74 84423 6.1
Non-cultivators 3.80 54 39142 10.3
All-India
Cultivators 28.73 46 70580 2.5
Non-cultivators 6.75 29 25741 3.8
Incidence of value of assets, indebtedness and debt in Telangana and India
Source: NSSO report on debt and investment survey (70th round), Govt of India.
District No. of farmers benefited as per UCs(lakh)
total amount credited in 2 installments (Rs.Crore)
Rangareddy 2.1 502Adilabad 3.2 731Nizamabad 3.8 787Khammam 3.6 818Karimnagar 3.7 831Warangal 4.0 920Medak 4.0 966Nalgonda 5.0 1176Mahabubnagar 6.0 1348Telangana
35.30 8080
District wise number of beneficiaries and amount released under crop loan waiver schemes
Conclusion Telangana agricultural sector is in a transition from cereal based cropping systems to
commercial crops based cropping systems with larger contribution from fruits and vegetables and commercial crops like cotton and soybean.
The commercialization of agriculture resulted in high input-high output-high risk for which many small and marginal farmers are not able to cope with and ultimately end up in huge debt with higher cost of production in agricultural sector.
Livestock sector growth is also significant, now its contribution is equal to crop sector to gross state domestic product.
Telangana agriculture is dominated by small and marginal farmers
The number of cultivator’s decreased and agricultural labourer increased during the past and this change is more among women.
The real problem is as the farm incomes reduced, there was no increase in alternative income sources in rural areas for the farming community.
Although many agricultural households engaged in multiple activities like casual labourer, non-farm incomes, but the actual income share from these sources is very limited in Telangana compared to Andhra Pradesh and All-India.
In policy front to facilitate this diversification of agricultural sector, state government should focus on increasing irrigation facilities, providing veterinary services through livestock service centres and rural service centres for promoting overall development of the rural economy to create employment in not only agriculture, but also in off-farm and non-farm activities. However, in this transition period farmers income may fluctuate widely, hence there was a need for price support and crop and livestock insurance for every farmer in Telangana irrespective of the farm size.
