CHAPTER II AGRICULTURAL ECONOMY OF ORISSA AND HARYANA

Transcription

1 CHAPTER II AGRICULTURAL ECONOMY OF ORISSA AND HARYANA At the field level, data has been collected from the cultivating households of both Haryana and Orissa to analyse the behavior of farm capital formation. It may be mentioned that these two states represent a different level of agricultural development. While Haryana being the early adopters of new agricultural technology, the magnitude of agricultural growth and development placed in a better position compared to the state of Orissa. The quality and quantity of agricultural inputs including implements and machineries used also differ widely in both states. Besides, cultivators in Haryana enjoy better infrastructural and institutional facilities with improved extension services. This has come about because the state government has had a large chunk of investment on its agricultural sector. The present chapter analyses agricultural growth and development, the level of input use in Haryana and Orissa vis-a-vis at all India level. Before attempting that, a brief introduction of both the states has been discussed in the following section. 2.1 A Brief Introduction of Orissa The Independent State Orissa was constituted in 1936 by carving out certain portions from the provinces of Bihar, Orissa and Madras. It is located between ' and ' North latitude and ' and ' East longitude. The State is bounded by the Bay of Bengal in the East, West Bengal in the North-East, Bihar in the North, Madhya Pradesh in the West and Andhra Pradesh in the South. The territory may be divided into four distinct geographical regions: the Eastern Plateau, the Central River Basin, the Eastern Hill Region and the Coastal Belt. The entire territory lies in the tropical zone as a result of which high temperature is recorded particularly during April-May. [24]

2 Covering an area of 155,707 sq.km. Orissa has a population of about three crore out of which more than 22 percent are tribal, with their concentration in Mayurbhanj, Keonjhar, Sundargarh and Koraput districts. Oriya is the mother tongue of the people of Orissa and most of them understand Hindi as well. People also speak Bengali, Telugu, Urdu and Gujarati in addition to the various tribal dialects Agricultural Economy of Orissa Agriculture is the mainstay of state's economy and sustenance of the life of the people. Agriculture and animal husbandary contributed about 26 percent of the Net State Domestic Product in the state and provided employment to about 65 percent of the total work force. Rice is the staple food of the people and it is being cultivated widely in the state. Rice covers a total area of lakh hectares during constituting about 77 percent of the total area under cultivation. The major oilseed crops grown in the state are groundnut, sesamum and mustard. Besides sugarcane, jute, mesta, cotton soyabean, patato, chilli are some of the commercial crops grown in the state. Development of agriculture in Orissa has, however lag behind due to several constraints such as traditional methods of cultivation, inadequate capital formation, inadequate irrigation facilities and uneconomic size of holdings. Sometimes, the state's economy is hampered because of occurrence of natural calamities like flood, drought and cyclone. The Central Rice Research Institute (CRRI), Cuttack has been providing rice research support to the entire country in general and Orissa in particular for developing low cost improved rice production technologies such as high yielding rice varieties and suitable rice based farming systems under different ecosystems. Similarly the Orissa University of Agriculture and Technology (OUAT) imparts education and training in various aspects of agriculture, animal husbandary and veterinary sciences etc. The university has developed a research base for generation of technology capable of improving productivity, stability and sustainability of major farming systems under varied agro climatic situations of the state. [25]

3 Orissa is also known for her exquisite handicrafts. Silver filigree work of Cuttack, hom work of Cuttack and Parlakhemundi and the famous applique work of Pipili deserve special mention. Pattachitra, a form of folk painting of Orissa, is a unique craft. Brass and bell metalware, particularly vases and candle stands, are beautiful and longlasting. The blackstone bowls and plates of Nilagiri and Khiching and multi-coloured stone statues are other attractions. Silk and cotton handloom products, especially saris are most famous in the state. The Sambalpuri saris and Maniabandhi patas are matchless in their texture and designs. 2.2 A Brief Introduction of Haryana The name of Haryana instantly conjures up the image of a state which astonishingly combines both antiquity and plenty. The Vedic land of Haryana has been a cradle of Indian culture and civilization. The region has been the scene of many a war because of its being 'A Gateway to North India'. As years rolled by, successive streams of the Huns, the Turks and the Tughlaqs invaded India and decisive battles were fought on this land. Indeed, the history of Haryana is the saga of the struggle of a virile, righteous, forthright and proud people. From ancient times, the people of Haryana have borne the main brunt of invaders and foreign hordes with their known traits if bravery and valor. They have survived many an upheaval, upholding the traditional glory and greatness of the land to this day. Haryana emerged as a separate State in the federal galaxy of the Indian Republic on November 1, With just 1.37% of the total geographical area and less than 2% of L'ldia's population, Haryana has carved a place of distinction for itself during the past three decades. Whether it is agriculture or industry, canal irrigation or rural electrification, Haryana has marched towards modernity with leaps and bounds. Today, it enjoys the unique distinction in India of having provided electricity, metalled roads and potable drinking water to all its villages. Haryana is among the most prosperous states in India, having one of the highest per-capita income in the country. The women are devoted and diligent and assist their men-folk on the farms. [26]

4 2.2.1 Agricultural Economy of Haryana Majority of population in the state of Haryana is engaged in agriculture, directly or indirectly. Apart from meeting its own requirement for foodgrains, Haryana also contributes about 45 lakh tonnes of foodgrains to the Central Pool annually. The Basmati rice produced in Haryana finds an easy market abroad. The State has Asia's biggest agricultural University known as Chaudhry Charan Singh Haryana Agricultural University at Hisar, which has already made a significant contribution in ushering 'Green Revolution'. Electricity is supplied at subsidized rates to the agriculture sector. There is a network of canals and an effective lift irrigation system for the arid areas of the State. As a result of the various incentives being provided to the farmers, floriculture and horticulture are fast picking up. An ultra-modem fruit and vegetable market and food processing complex of international standard is being developed at Rai near Delhi to provide marketing and food processing facilities to the farmers and entrepreneurs of the northern region Animal Husbandary Animal husbandry has been taken up as an integral component of diversified agriculture. Haryana has a livestock population of lakh. Its 'Hariana' breed of cows and 'Murrah' breed of buffaloes are known throughout the world. Buffaloes constitute 45 %of the total livestock population and they contribute 80.5 % of the total milk production. About one lakh 'Murrah' buffaloes are exported every year to other states and abroad. The National Dairy Research Institute (NDRI) set up at Kamal and Central Institute for Research on Buffaloes (CIRB) at Hisar are constantly developing the breed of 'Hariana' cow and 'Murrah' buffalo. There is a network of veterinary institutions to maintain the health of livestock. Embryo transfer technology is being introduced to further improve the quality of livestock as by adopting this technique, a superior female can produce 12 off-springs through multiple ovulation and embryo transfer. The State is regularly supplying hen-eggs, layer-chicks and broilers to the neighboring States of Delhi, [27]

5 Rajasthan and Uttar Pradesh. These products are also supplied to the far away states such as Assam and Bihar. 2.3 A Comparative Prof.tle Sectoral Contribution to Net State Domestic Product It has been seen from the above that agriculture continues to be a major occupation in both the states. However, its contribution to the total domestic product has been declining in both the states. It may be seen from Table 2.1 that during , as high as 38 percent of the total NSDP was accruing from the agriculture alone which subsequently declined to 25 percent in recent years. The same proportion for the state of Haryana also declined from 42.2 percent to 29 percent during the same period. On the other hand, the contribution of service sector to the domestic product in both states has been increasing. The trends of contribution of different sectors at all India level also took the same trends as may be seen from the table. Though the contribution of service sector to the state's economy is an important indicator of economic development, which has come about recently in the wake of recent globalization and liberalization, the overwhelming agricultural sector must not be neglected. This is important because agriculture has been the mainstay of majority of households in both the states. It is, however, important to note that the income differentials in both states are quite high. During the year i.e , while the per capita income of Orissa was Rs 6640, it was Rs. 15,752 in Haryana. The ratio of per capita income in Orissa to that of Haryana in was The ratio has come down slightly in recent years (i.e., 0.42 in ) indicating that the per capita income in the state of Haryana has been increasing at a higher rate as compared to the state of Orissa. [28]

6 Table 2.1 Sector Wise Percentage Distribution of Net State Domestic Product: Orissa, Haryana and All India Ratio of PCI inrs PCI Agriculture (at (Orissa!Har Only Primary Secondary Tertiary All 94 prices) yana Orissa Haryana All India Orissa Haryana All India Orissa Haryana All India Source: a. Directorates of Economic and Statistics of respective state government b. Central Statistical Organisation, Govt of India Note: Data for has been taken on base Pattern of Land Utilization The pattern of land utilization in Orissa and Haryana vis-a-vis all India has been depicted in Table 2.2. During , total reporting area for land utilization were 3,06,054 hectares, of which a little above one fifth represents forest area The proportion of forest area has been increasing marginally since It may be seen from the table that while in Orissa, the percentage of area under forest was 36 percent during ; it was a meager 2.6 percent in Haryana. This indicates the fact that land is more extensively [29]

7 used for cultivation in Haryana as compared to Orissa. It could be seen that total net sown area constitute more than 80 percent of the total reported area in Haryana, while in Orissa it constituted about 40 percent. At the all India level, the total net sown area constituted 46 percent of total area reported. Area sown more than once in Haryana represemts more than 50 percent of the total areas compared to 16 percent at all India level and approximately the same in Orissa (15. 7 percent) during It may be observed from the table that area sown more than once have increased rapidly in Haryana in comparison to a sluggish growth in Orissa. The proportion of areas under this head was 31.4 percent in , which rose to 56.3 percent in On the other hand, in Orissa, the area sown more than once hovered between 15 to 16 percent during the same period. The land not available for cultivation in Orissa constituted 9.4 percent of total available land, where as in Haryana and at all India level it was 10.4 percent and 14 percent respectively in There are almost absence of fallow land other than current fallow, cultivable waste land and land under miscellaneous use in the state of Haryana, though it constitutes about 11 percent of total land in Orissa. Analysis of the pattern of land utilisation in Orissa and Haryana above thus, indicates that land has been more judiciously used in Haryana compared to Orissa It may however, be remembered that the geographical land in Haryana constitute a part of Gangetic Plain, which is most suitable for agricultural production. Moreover, availability of agricultural infrastructure including irrigations, roads, agricultural implements and machineries have an added advantage for judicious use of land in the state. [30]

8 2.2 Pattern of Land Utilization: Orissa, Haryana and All India (in Hectares) Year Region Orissa Orissa Orissa Haryana Haryana Haryana India All India All India Reporting area for land utilisation All Forests Not available for cultivation Perm/past and others Land under l miscellanous use Cultivable waste l.l l.l 1.2 land fallow land other than current l.l l.o fallows l current fallows Net area sown area sown more than once total cropped area Cropping Intensity Source: Statistical Abstract, Various issues Figures in parenthesis represent percentage value. Cropping Intensity is defined as Gross Cropped Area/Net Sown Area v / [31]

9 2.3.3 Cropping pattern There has been a significant variations in cropping pattern in both the states of Orissa and Haryana. Table 2.3 depicts how the cropping pattern has changed in both the states, along with all India level from the year to It may be observed from the Table that rice happen to be an important food crops in Orissa where more than 80 percent of the total cropped area is accounted by rice alone during During the period , 73.3 percent area was devoted to rice which declined to 54 percent in It may be seen that during , somewhat more proportion of areas was devoted for high valued crops such as oil seeds and pulses. Total area under foodgrain in Orissa constituted more than 95 percent of the total cropped areas compared to 77.4 percent at the all India level. The proportion of area under wheat, Jawar, bajra and maize are negligible throughout the period. These crops, therefore are considered unimportant in the state. Moreover, cropping pattern in the state is guided by the food behavior of the people, where rice happens to be the important one. Among the non-foodgrain crops, oil seeds and sugarcane are dominant in the state. It may be mentioned that pulses and oilseeds (mostly groundnuts) are grown in the state during the rabi season without depending much on irrigation facilities. On the other hand, Haryana produces a diverse range of both food grain and non-food grain crops. About three-fourth of the total cropped area constituted under food grain crops in the state during The proportion of area under foodgrain crops however, have shown a decline over the period in the state. It may be seen that during , while 87.8 percent of the total area was devoted to food grain, it came down to 83.7 percent in and further to 75 percent in Among the food grain crops wheat covered about 43 percent of the total areas, while rice covered 17.1 percent of the total area. Among the non-food grain crops oil seeds, cotton (lint) and sugar cane are dominant in the state. [32]

10 Table 2.3 Cropping Pattern (Orissa, Haryana and All India) (Proportion of Area under Different Crops) Year All All Regions Orissa Haryana India Orissa Haryana All India Orissa Haryana India Rice Wheat Jawar Bajra O.l O.l Maize l.l Other cerea1s(ragi,smal 1 millets, barley) Total cereals Total pulses Total foodgrains Total Oilseeds Cotton(lint) Jute Sugarcane Total other nonfood grains Total non food grain Source: same as table 2.2 [33]

11 Figure 1. Cropping Pattern: Foodgrain and Non-foodgrain Crops ( ) Foodgrain 40 Non-foodgrain 20 0 Orissa Haryana All India The cropping pattern in both the states thus reveals that compared to Haryana, there has not been much agricultural diversification taken place in Orissa. The cultivators in this. state concentrate more on food grain crops. On the other hand, farmers in Haryana have been able to diversify their agriculture towards high valued crops. In fact, over the decades, the proportion of areas under food grains have come down in the state Irrigation Facilities Irrigation is one of the important inputs in agricultural production. It is one of the vital factor for adoption of new technology for rapid agricultural development. But unfortunately, the farmers in the country are not able to have assured irrigation facilities even after five decades of agricultural growth and development strategy. It could be seen from Table 2.4 that during , only about 40 percent of the total gross cropped area are irrigated. During , it was only 21.2 percent. The scenario in Orissa is even worse, where only one fourth of the total gross cropped area is irrigated as on , and the rest three-fourth are rain fed. In fact, the state with all its rivers have a vast potential for the expansion of irrigation. The government should make adequate investment in irrigation sector to build up the agricultural base of the state. [34]

12 In Haryana, however, the situation is altogether different. About 87 percent of the total gross cropped are is reported to be irrigated in the state. In fact, the growth in the proportion of irrigated area has been quite substantial. During , the proportion of gross irrigated area was 43.5 percent which went up to 63.6 percent in and further to 86.6 percent in While the expansion of irrigation facilities in Orissa has been quite slow. Table 2.4 Proportion of Area under irrigation Proportion Proportion of Net Gross Gross of gross Net Area Net Area irrigated irrigated cropped irrigated Year Region irrigated Sown area area area area All India Orissa Haryana All India Orissa Haryana All India Orissa Haryana Source: same as Table 2.2 [35]

13 2.3.5 Net Area Irrigated by Sources Net area irrigated by sources in three different phases for Orissa, Haryana and at all India level has been depicted in Table 2.5. It may be seen that tubewell happens to be the most used source of irrigation in the country by Further, government canal as a source of irrigation has been declining gradually; indicating government investment on canal irrigation has slowed down in the recent past. It may be observed that 37.2 percent of total net irrigated area was irrigated by government canal during which came down to 36.8 percent in and further to 28.9 percent in at all India level. Table 2.5 Net Area under irrigation by Sources Government Private Tube wells and other Other Canal canal Tanks wells sources Total Orissa (20.1) (2.8) (50.7) (3.9) (22.5) (100) Haryana (67.5) (0.0) (1.2} (31.0) (0.3} (100) All India (37.2) (3.2) (14.7) (36.7) (8.2) (100) Orissa (59.1) (0.0) (17.5) (23.4) (0.0) (100) Haryana (55.0) (0.0) (0.0) (44.8) (0.2) (100) All India (36.8) (1.2) (8.0) (47.8) (6.2) (100) [36]

14 Orissa (45.4) (0.0) (14.6) (40.0) Haryana (49.9) (0.0) (0.0) (49.6) All India (28.9) (0.4) (4.6) (60.9) Source: same as Table 2.2 (0.0) 14 (0.5) 2892 (5.3) 1933 (100) 2958 (100) (100) Figure 2. Sources of Irrigation: Orissa so 40 ~ r l --- Government Canal Privatecanal Tan ks Tube wells Other sources and other wells Figure 3. Sources of Irrigation: Haryana ' '-- / Govern ment Canal Pri vate cana l Ta nks Tube wells and Other sources other wells [37] \

15 Figure 4. Sources of Irrigation: All India so Government Canal Priva tecanal Tanks Tube wells and Other sources other wells In Orissa, the net area irrigated by government canal was maximum constituting 45.4 percent during L This has again declined from 59.1 percent in On the other hand, 40 percent of net area irrigated is reported by tube well in recent period. It may however, be noted that traditional tanks happened to be the most used source of irrigation in the states which have registered a sharp decline over the years. Thus tube well as source of irrigation in the state has improved quite well. In other words, gradual increase in irrigation expansion in the state has come about by tube well alone. But nevertheless, in a traditional agricultural set up like Orissa, farmers do not have adequate inclination and motivation to install tube well for private irrigation. In Haryana, there are equal share of government canal as well as tube well as a source of irrigation during The proportion of government canal, has, however, been declining in the state as well and that of tube well has shown a gradual increase. Overall, it appears that canal as a source of irrigation has been declined over the years in both the states as well as at all India level, indicating that government investment on major and medium irrigation has slowed down in recent years. The recent increase in irrigation facilities across the two regions has thus come about by private means in terms of tube well and other sources. [38]

16 2.3.6 Growth Rate of Area~ Production and Yield The growth rate of area, production and yield of principal crops in Orissa, Haryana and at all India level has been presented in Table 2.6a, 2.6b and 2.6c. One can see from the Table that for most of the crops there has been a negative growth of area during the period to at all India level. While in Orissa, there was a negative growth in all the crops, in Haryana it can be seen that except rice and wheat all other food grain crops have shown a negative growth in area during the same period. The area under nonfood grain crops, on the other hand have registered an impressive growth rate in areas in Haryana as well as at all India level. This is true more particularly in case of oilseeds crops, sugarcane and potato. It thus reveals that after the period , somewhat more proportion of areas were devoted towards non-food grain crops in the country. Table Growth Rate of Area (Orissa, Haryana and All India) Year to Regions Orissa Haryana All India Rice Jowar Bajra Maize Wheat Total Cereals Total pulses Total foodgrains Total oilseeds Sugarcane Tobacco Patato Source: same as table to All Orissa Haryana India [39]

17 The growth rate of crop production for both food grain and non-food grain crops reveals that at all India level, after the period , maximum growth in production has taken place in case of non-food grain crops like oil seeds, sugarcane and paotato compares to food grain crops. Production growth of cereals along with oilseeds have fair better in Haryana in both the time periods. In Orissa, however, there has been negative growth of production in all crops during the period to Table Growth Rate of Production (Orissa, Haryana and All India) Year to to Regions Orissa Haryana All India Orissa Haryana All India Rice Jowar Bajra Maize Wheat gy 2.25 Total Cereals Total pulses Total food grains Total oil seeds Sugarcane Tobacco Patato Source: same as Table 2.2 Table Compound Growth Rate of Yield (Orissa, Haryana and All India) Year to to Regions Orissa Haryana All India Orissa Haryana All India Rice Jowar Bajra Maize [40]

18 Wheat Total Cereals Total pulses Total foodgrains Total oilseeds Sugarcane Tobacco Patato Source: same as Table 2.2 The annual growth rate of yield has also registered a negative growth rate after , though the yield growth rate during the Green Revolution. period has been quite impressive. Poor performances of agriculture in Orissa is thus accounted by decline in both area and yield growth after Thus, during the period of globalization, Orissa agriculture experienced a dismal performance, though Haryana has been able to maintain its growth in agriculture Fertilizer Consumption Under the package of 'new technology' besides irrigation, fertilizer is considered to be one of the vital elements of agricultural inputs. The use of HYV seeds must also be accompanied by adequate dose of fertilizer for increasing land productivity. Farmers in Orissa are, however not able to add sufficient plant nutrients in the form of chemical fertilizer for augmenting higher agricultural production. It may be seen from the table 2.7 that on an average, the use ofnpk fertilizer per hectare in Orissa is only 40.4 kg, which is even less than one-fourth of average per hectare consumption in Haryana. It may be mentioned that there is a strong correlation between percentage of area irrigated and use of chemical fertilizer. And, since expansion of irrigation facilities in Orissa has been quite low, the consumption of chemical fertilizer has been very less. [41]

19 Table 2.7 Fertilizer Addoption N+P+K (Orissa, Haryana and All India) Year Orissa Haryana All India Note: Figures are Kg per hectare (based on provisional gross cropped area Source: Economic Survey (Various Issues) Use of Agricultural Implements and Machineries Agricultural implements and machineries to carry out farm operations are also crucial among all others inputs. Indigenous implements and machineries that are used in the country have been evolved over generations. The role of agricultural implements and machineries are not only to increase agricultural production but also saves the farmers most at the time of labour scarcity. It also saves the cost of production when human and bullock labour becomes higher. In the Green Revolution pockets of the country, it has been observed that farmers are opting for modem implements like tractors, threshers, tube wells, rippor, compine etc since the HYV crops are time specific in nature and increase the demand of labour during peak agricultural season. Therefore, the rational farmers always go for farm mechanization instead of relying upon human and bullock labour. The status of agricultutal implements and machineries in the state of Haryana and Orissa vis-a-vis at all India level has been depicted in Table 2.8. The figures represented are the unit of agricultural implements and machineries by net sown area in hectare at three different points of time. It may be seen from the table that the net sown area per unit of various agricultural implements and machineries have declined in subsequent phases. In other words, the quantity of such machineries have increased over time for each hectare net area sown. [42]

20 It may be observed from the table that at all India level, during 1966, one tractor used for agriculture was meant for 2585 hectares of agricultural land. While it was 5268 hectares in case of Orissa it was 1234 hectares in Haryana It however, subsequently declined to 11.7 hectares at all India level in During this period, in Haryana, a single tractor used to cultivate only 4 hectares of agricultural land. On the other hand, in Orissa. a single tractor used to cultivate hectares of land. It thus, indicates that farm mechanization in the country has increased rapidly, though the rate of increase has been quite slow in the state of Orissa. Table 2.8 Net Sown Area (in Hect) per Unit of Agricultural Implement and Machinery Used Electric Diesel pump Tractors Plough(Wooden engme used for used for Sugarcane Animal and iron) pumpset irrigation agriculture crushers carts 1966 Orissa Haryana All India Orissa Haryana All India Orissa Haryana All India Source: same as Table 2.2 [43]

21 2.4 Concluding Observations An analysis of agricultural development in Orissa and Haryana, reveals wide difference in the per capita income, level of input use, use of agricultural implements and machineries and availability of irrigation facilities and other infrastructural facilities. The per capita income in Haryana is about two and half times higher than in Orissa. As far as cropping pattern is concerned, the area under crops other than food grain is almost negligible in Orissa indicating a poor crop diversification strategy in the state. Rice being the main crop occupies about 90 per cent of the total area in the state. On the other hand, farmers in Haryana have been able to diversify their agriculture towards high valued crops like oilseeds, cotton, sugarcane etc. It may be noted that while 14 percent of the total cropped area is covered under non-foodgrain crops during , the same stood out to be only 1.6 percent in Orissa. While more than 85 percent of gross cropped area is irrigated in Haryana, the same stood out to be only 25 percent in Orissa. During , however, the proportion of government canal as a source of irrigation has been declining in both states as well as at the all India level. This indicates the fact that, investment on major and medium irrigation has been declining over the years. There has been a marked decline in traditional tank as a source of irrigation; and the recent increase in irrigation base have come up because of the expansion of tube well, which entirely comes from private investment. There appears to be a decline in area under most of the crops in both regions during the period to The non-food grain crops have registered an impressive growth in areas in Haryana and at the all India level, especially in case of oil seeds, sugarcane and potato. While in Orissa, it registered a negative growth in all crops during the same period. Production and yield growth of cereals along with oilseeds have faired better in Haryana during to and to , while in Orissa it has registered a negative growth rate. Overall it appears that there is a wide difference in the production growth, per capita income as well as the level of input use and use of other agricultural implements and [44]

22 machinery in both states. This signifies the fact that private investment in agriculture in Orissa is at the low level and so is the productivity. Further, lack of agricultural diversification may be attributed to lack of entrepreneurial ability among the farmers, and poor extension services in the state. The poor performances of agriculture in the state of Orissa may also be attributed to geographical reasons including landscape, natural disasters such as flood, drought and cyclone etc. The details of inter-district variations in agricultural development and comparison of agricultural productivity in both states has been presented in subsequent chapters. (45)