The average production of foodgrains in Andhra Pradesh registered a 20 per cent rise in the last four years compared with the five year-period between 1999 and 2004.
As per the state government estimates, the average production stood at around 16.6 million tonnes (mt) between 2004-05 and 2007-08 as against 13.78 mt in the preceding five-year period.
This is despite the fact that there have been no major breakthroughs in agricultural technologies during the period to boost productivity.
According to DA Somayajulu, economic adviser to the chief minister, good monsoons, better credit facilities to the farmers and bringing an additional 2 million acres under irrigation had significantly contributed to the rise in production.
From 13.39 mt in 2004-05, the foodgrains production in the state reached a peak of 19.78 mt in 2007-08. With good monsoons predicted this year, the state is expected to produce 19 mt in 2008-09.
In contrast, the production remained stagnant at about 13.69 mt both in 1999-2000 and 2003-04. During the five-year period, the state recorded the highest production of 16.02 mt in 2000-01 and lowest of 10.65 mt in 2002-03.
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During the Tenth Plan period, agriculture and allied activities in the state registered a combined average growth rate of 4.47 per cent at constant prices while the CAGR (compound annual growth rate) stood at a mere 1.37 per cent during the period of Ninth Five Year Plan. The share of agricultural sector in the gross state domestic product (GSDP) in 2007-08 stood at 25 per cent.
At current prices, agriculture GDP in the state was estimated at Rs 78,000 crore last year while the total GSDP was Rs 3.12 lakh crore. This was stated to be the second largest agricultural GDP in a state next only to that of Uttar Pradesh.
In the last four years, Somayajulu told Business Standard, commercial banks credit to the farm sector in the state increased from Rs 9,000 crore to Rs 26,000 crore.
About 4 million new loanee accounts have been added in the rural areas. Besides, the state government's initiative like providing farm loans at an interest rate of 3 per cent had contributed to the growth of the agricultural sector.