Farm output may decline by 0.2% in 2009-10: CSO

The agriculture sector output is likely to decline by 0.2 per cent in the current fiscal due to fall in Kharif production on account of drought and floods that hit several parts of the country.

"The agriculture, forestry and fishing sector is likely to show a decline of 0.2 per cent in its GDP during 2009-10, against the previous year's growth rate of 1.6 per cent," Central Statistical Organisation (CSO) said today while releasing the advance estimates for GDP for this fiscal.

Late last month, the Reserve Bank in its third quarter review of the monetary policy had projected that the agricultural GDP growth in 2009-10 is expected to be near zero.

Production of foodgrain and oilseeds are expected to declined by 8 per cent and 5 per cent, respectively, in 2009-10 crop year, compared with the previous year, CSO said, adding that sugarcane output is likely to dip 11.8 per cent.

However, cotton production is expected to rise by 0.2 per cent. "Among the horticultural crops, production of fruits and vegetables is expected to increase by 2.5 per cent and 4.8 per cent respectively, during the year 2009-10," it said.

India's farm sector contributes about 17-18 per cent of the total GDP, but about 60 per cent of the population depends on agriculture for livelihood.

The country faced its worst drought last year after 1972, with almost half of the country getting affected by poor rains resulting in a loss of Kharif rice production by 13 million tonnes.