Steady rise in fruits and veggies production

The report titled Handbook on Horticultural Statistics 2014, however, does not provide the possible causes behind high inflation in the prices of fruits and vegetables, particularly in the past 2 years, despite a consistent rise in production. Table 1 shows that inflation in wholesale price index (WPI) for vegetables remained higher as compared to food grains (comprising cereals & pulses) during 2012-13 and 2013-14. However, despite this, the report serves as a useful resource for media persons and researchers (See key findings and links below).

The report informs us that prior to 2009-10, foodgrains production exceeded horticultural production every year. However, since 2009-10 onwards (a year falling under the XI Five Year Plan), total horticultural production started exceeding total foodgrain production. In fact, horticultural production in India stood at 280.8 million tonnes in 2013-14 while foodgrain production reached 264.4 million tonnes in the same year, as per the third advance estimates of Ministry of Agriculture.

This was possible because of the special thrust given to horticultural sector over the last 2 five year plans. The actual expenditure on National Horticulture Mission (NHM) was increased from Rs. 917.33 crore in 2007-08 to Rs. 1809.56 crore in 2013-14, as per the present report. The share of plan outlay for Horticulture in Agriculture which was 3.9% during Ninth Plan was increased to 4.6% during the current Twelfth Plan. This share was 11.6% during the Eleventh Plan. The State of Indian Agriculture 2012-13 report (published earlier) mentions that horticultural sector received special attention after the introduction of the Horticulture Mission for North East & Himalayan States (HMNEH) and the NHM in the Xth Plan, which yielded positive results.

Although the present report provides data on prices of various horticultural commodities for the period July 2013 to June 2014, which has been collected from various state-level Agricultural Produce Market Committees (APMC) or mandis, there is no discussion on how many Indian states have so far taken action to reform the APMC Act and adopted the model Act on State Agricultural Produce Marketing. It is widely believed by mainstream economists that reforming the APMC law at the state-level is important for eliminating middle-persons in the supply chain, which can dampen inflationary forces. On top of it, the report does not talk about the problem of storage and management of perishables particularly faced by small and marginal farmers.

Due to the export-oriented policy adopted by India, growth rate in value of horticultural produce exported has increased from 25.1% in 2011-12 to 35.6% in 2013-14. This may have improved the incomes of farmers. However, since a large number of studies have indicated the perils associated with agricultural trade liberalization, the Government must take precautionary measures.

The key findings of the report entitled: Handbook on Horticultural Statistics 2014 are as follows:

•Total horticultural production started exceeding total food grain production since 2009-10 onwards. Prior to 2009-10, food grains production exceeded horticultural production every year.

•As compared to 257.1 million tonnes of food grain production during 2012-13, the total horticulture production was 268.9 million tonnes. The annual growth rates for area and production of horticulture crops during 2012-13 over 2011-12 were 1.9% and 4.5% respectively.

•Percentage share of vegetables production in the total horticulture production was 60.3% during 2012-13, while fruits was 30.2%, plantation crops was 6.3%, spices was 2.1%, and flowers & aromatics was 1.0%.

•Total horticulture production was highest in case of West Bengal (292 lakh MT) followed by Andhra Pradesh (289.13 lakh MT) in 2012-13.

•During 2012-13, the highest production of fruits of 139.39 lakh MT was recorded in Andhra Pradesh (17.1% share) followed by 97.85 lakh MT in Maharashtra (12% share).

•Tamil Nadu (18%) has the highest share in production of flowers (loose) during 2012-13 and in case of cut flowers, West Bengal has the highest share of 33.14%.

•West Bengal (15.7%) has the highest share in vegetables production followed Uttar Pradesh (12.1%) in 2012-13.

•Andhra Pradesh has the highest share in spices production (20.7%) in 2012-13.

•During 2013-14 the total value of export of horticulture produce from India to different countries was Rs. 14365 crore. Export of flowers from India was about Rs. 456 crore.

•The percentage share of calorie intake from fruits and vegetables has increased from 6.9% in 2004-05 to 7.0% in 2009-10 in rural areas and 7.2% to 8.0% in urban areas during the corresponding period.

•Among the major fruit and vegetable producing countries, India ranks number two after China during 2012-13.

References

Handbook on Horticultural Statistics 2014, Ministry of Agriculture (please click here to download)

Third Advance Estimates of Horticultural Production for 2013-14, Department of Agriculture & Cooperation (please click here to download)

Third Advance Estimates of Production of Foodgrains for 2013-14, Department of Agriculture & Cooperation (please click here to access) 

State of Indian Agriculture 2012-13 (please click here to access)

All in the name of the farmer-Mekhala Krishnamurthy, The Hindu Business Line, 2 January, 2012

Understanding Agricultural Commodity Markets -P S Vijayshankar, Mekhala Krishnamurthy, EPW (Please click here to access)

Understanding Mandis -Market Towns and the Dynamics of India's Urban and Rural Transformations, IGC Project Report 2: A Comparative Study of Agricultural Marketing Reforms -Mekhala Krishnamurthy and Jeffrey Witsoe (please click here to access) 

Supermarkets in India: Struggles over the Organization of Agricultural Markets and Food Supply Chains -Amy J Cohen, University of Miami Law Review (please click here to access) 

The Promise and the Perils of Agricultural Trade Liberalization: Lessons from Latin America -Mamerto Pérez, Sergio Schlesinger, and Timothy A Wise, June 2008, Working Group on Development and Environment in the Americas (please click here to access)

Export-oriented agriculture and food security in developing countries and India -Utsa Patnaik, Economic and Political Weekly, September 1996 (please click here to download)

Image Courtesy: Himanshu Joshi