MP farmers earn 32% more income in 2016-17 by diversifying farming

ICRIER study shows proportion of area under horticulture crops jumped from 2% to 6%

The cumulative income of all farmers in Madhya Pradesh has risen by 32% in 2016-17 from a year ago to Rs 53,745 crore, even as the Centre works on an ambitious target of doubling farmers’ incomes by 2022. 

The rise is largely due to diversification of farm activities and adoption of better practices.

Making a presentation made during the Governing Council meeting of NITI Aayog last week, Madhya Pradesh Chief Minister Shivraj Singh Chouhan said the gross state domestic product in agriculture rose by 168% in the last five years from Rs 82,960 crore in 2011-12 to Rs 222,174 crore in 2016-17.

The rise is largely due to growth in animal husbandry and fisheries, which points to a shift in the state’s farming structure from cereals and horticulture to high-value produce.

The state’s agriculture and horticulture output grew 61% between 2011-12 and 2016-17 and its animal husbandry and fisheries output grew 276% and 178%, respectively. 

Chouhan was asked to make a presentation on doubling farmers’ incomes drawing from his state’s experience. Prime Minister Narendra Modi chaired the day-long meeting.

A recent working paper on agriculture growth in Madhya Pradesh published by agriculture economist Ashok Gulati, along with Parvesh Sharma and Pallavi Rajkhowa of ICRIER, endorsed the claims made by the state government.

The paper, which was put in the public domain on Saturday, said although Madhya Pradesh was mainly a grain producing state, there were indications of a diversification towards horticulture.  The paper added the state’s network of roads was among the main reasons for the surge in its farm output.

The report said between 2005-06 and 2014-15, the proportion of area under horticultural crops in Madhya Pradesh had climbed from 2% to 6%. Around 43% of the total area under horticulture is devoted to vegetables. 

There has been a significant increase in vegetable production in Madhya Pradesh from 3.6 million tonnes in 2010-11 to 14.2 million tonnes in 2013-14. 

“This has improved Madhya Pradesh’s position in vegetable production from thirteenth position in 2010-11 to fourth place in 2013-14; its contribution in total vegetable production has increased from 2.8% to 7.4%,” the paper said. 

Milk production has increased 69% from 6.4 million tonnes in 2006-07 to 10.8 million tonnes in 2014-15 and meat production tripled during the period from 20,000 tonnes to 60,000 tonnes.

Chouhan in his presentation stressed on five areas for doubling farmers’ incomes: decreasing the cost of cultivation; increasing productivity and production; diversification in agriculture towards high-value crops, livestock and fisheries; ensuring better sale prices for farmers; and risk mitigation through a comprehensive system of insurance and timely compensation.

He provided the example of Prakash Jawle, a farmer in Burhanpur district of Madhya Pradesh, who increased his gross income per acre from Rs 105,625 to Rs 255,625 by diversification and adopting better practices.
 

Madhya Pradesh’s GSDP In Agriculture & Allied Activities (in Rs crore)