Maharashtra's foodgrain output to dip 18%, GSDP expected to grow 7.1%

Maharashtra's foodgrain production is expected to fall by 18% to 10.4 million tonnes in 2012-13 from 12.7 mt in 2011-12, says the state government's economic survey. The document was tabled in the state legislature today.

The fall in grain output would be due to sowing delays in major kharif crops following a low-intensity and deficit monsoon in some parts of western Maharashtra, Aurangabad and Nashik divisions. The agriculture sector is expected to fall by 1.4%, leading to a fall in growth of agriculture and allied activities of 2.1%.

However, gross state domestic product (GSDP) at constant (2004-05) prices, by advance estimates, is expected to grow 7.1%, industry at 7% and services by 8.5% in 2012-13.

The total irrigation potential created by the end of June 2011 was 4.8 million hectares, of which 2.6 mha was from major projects, 0.85 mha from medium-size projects and the remaining 1.2 mha from minor irrigation. The irrigated command area with the water resources department rose to 3.2 mha in 2011-12 from 2.9 mha in 2010-11.

The state has initiated some reforms in irrigation, including declaration of a water policy, establishing a Water Resources Regulatory Authority and management of irrigation systems by local Farmers and Water Users Associations (WUA). About 4,550 WUA covering a command area of 2.1 m ha are under various stages of formation.

The Survey's observation on rise in irrigation potential and irrigated area has been a major relief for the Nationalist Congress Party, which has the water resources department in the coalition government. The NCP had been under attack for the expose on irrigation scams between 1999 and 2010. Last year's Survey had said the irrigation potential rose by a mere 0.1 per cent during this period, despite expenditure of Rs 70,000 crore. Subsequently, however, a state government position paper said irrigation potential during the said period had risen by 5.2 per cent. However, the government ultimately accepted opposition parties' demand for an inquiry into the irrigation scam, under way by a team led by water expert Madhav Chitale.

Guarantees given by the state government at the end of 2010-11 amounted to Rs 15,041 crore.

Revenue receipts are expected to be Rs 136,712 crore in 2012-13 against Rs 125,313 crore in 2010-11. Revenue expenditure is expected to be Rs 136,559 crore against Rs 127,372 crore in the earlier year. A revenue surplus of Rs 153 crore and a fiscal deficit of Rs 23,066 crore is projected during 2012-13.

GSDP at constant (2004-05) prices was Rs 787,426 crore in 2011-12 against Rs 735,212 crore in 2010-11, a rise of 7.1%. GSDP during 2011-12 at current prices was Rs 11,99,548 crore, an increase of 15.9 per cent. The net state domestic product (state income), says the first revised estimate, is Rs 10,82,751 crore and the per capita state income was Rs 95,339 crore in 2011-12.