Description

Copyright infringement not intended

Picture Courtesy: INDIAN EXPRESS

Context:

The Ministry of Statistics and Programme Implementation (MoSPI) report indicates a structural shift in agricultural output and consumption patterns over the last decade.

Gross Value of Output (GVO)

It is a measure of production that refers to the total value of all goods and services produced by a sector (in this case, agriculture and allied sectors) before deducting the cost of inputs used in that production.

It reflects the total economic activity and production volume within a specific agricultural segment. The report analyzes GVO at constant prices (adjusting for inflation) to show real growth over time.

Key Trends in Agricultural Output (2011-12 to 2023-24)

The MoSPI report, 'Value of Output from Agriculture and Allied Sectors', indicates a clear shift in agricultural production.

Products with Increase in GVO

Fruits

Strawberry: Production surged by over 40 times (GVO from ₹1.32 crore to ₹55.4 crore at constant prices).
Pomegranate: Increased by over four times to ₹9,231 crore.
Parmal (Parwal): Saw a nearly 17-fold increase to ₹789 crore.
Pumpkin: Increased by nearly 10 times to ₹2,449 crore.
Mushroom: Rose by three-and-a-half times to ₹1,704 crore.
Other Fruits: Watermelon (119% increase), Cherry (99% increase), Banana and Mosambi (both 88% increase), Muskmelon (87% increase).

Condiments and Spices

Dry Ginger: GVO increased by 285% to ₹11,004 crore, largely due to improved processing.

Meat

The share of meat in the overall GVO of agriculture and allied sectors increased from 5% in 2011-12 to 7.5% in 2023-24 (at constant prices).
The GVO of the meat group rose by 131%.

Products with Decreasing Share in GVO

Cereals => The share of cereals in the GVO of agriculture and allied sectors significantly declined from 17.6% in 2011-12 to 14.5% in 2023-24.

Structural Shift in Agriculture

Farmers are shifting from cultivating traditional staple crops like cereals to growing more remunerative high-value crops such as fruits, vegetables, and spices.

What are the driving Factors?

Changing Consumer Preferences => As incomes rise, people diversify their diets, demanding more fruits, vegetables, and protein-rich foods like meat.

Market Opportunities => Growing urban demand and better supply chains create new market opportunities for high-value agricultural products.

Technological Shifts => Advancements in farming techniques, storage, and processing (e.g., for dry ginger) support the cultivation and marketing of these perishable goods.

Policy Orientation => Government policies are focusing on nutritional security (promoting diverse diets) and tapping into the export potential of high-value agriculture.

Engel's Law

Engel's Law states that as household income increases, the proportion of income spent on food decreases, even if the absolute amount spent on food rises.

The recent report shows a fall in the share of food in total MPCE:

Rural Areas: From 52.90% in 2011-12 to 47.04% in 2023-24.
Urban Areas: From 42.62% to 39.68% in the same period. This indicates rising disposable incomes and diversification of spending beyond basic food necessities.

Must Read Articles:

New Agriculture related schemes

Source:

INDIAN EXPRESS

PRACTICE QUESTION

Q. Critically assess the various government policies and schemes aimed at promoting agricultural research and development in India. Are they adequately addressing the evolving needs of the sector? 250 words