Maharashtra agri output may decline 9.1%

Maharashtra’s agriculture and manufacturing sectors may be staring at dark days ahead. According to the state’s economic survey for 2011-12, its agriculture production is expected to fall 9.1 per cent. This would result in a fall of 5.1 per cent in agriculture and allied activities.

The grim situation in the manufacturing sector, according to the document tabled in the state legislature today, is owing to a rise in prices and a dismal global situation. Even so, the sector may be able to maintain its growth at 4.2 per cent.

As for foodgrain, its production is expected to register a decrease of 23 per cent with production of 11.8 million tonnes against 15.4 million tonnes during the previous year. The production of oilseeds and cotton is also expected to fall by eight per cent and 15 per cent respectively. The production of sugarcane is expected to be at 85.6 million tonnes.

Overall, normal monsoon lacked uniformity in spread and intensity. Also, there was a reduction in the area under crops for cereals, pulses, oilseeds. These combined are likely to hamper agriculture production in the state, the survey notes.

Further, the debt stock at the end of 2011-12 is expected to reach Rs 2,26,926 crore against Rs 2,05,689 crore by the end of 2010-11. As for the fiscal deficit, it has gradually declined to minus 0.4 per cent in 2007-08 from 4.4 per cent in 2004-05. However, in 2011-12, the percentage of fiscal deficit to gross state domestic product is again expected to increase to 1.8 per cent. This, the survey said, was is within the limit of 2.4 per cent stipulated by the 13th Finance Commission.

On foreign direct investments, the survey said the state received 4,221 FDI proposals betweem August 1999 and September 2010 amounting to Rs 84,958 crore. Of this, 42 per cent were completed, while seven per cent are under execution. The US and Mauritius are the two prominent countries in investing in industrial sector in Maharashtra, with a percentage share of 16 and 14, respectively in total FDI.