State has highest agri growth: ASSOCHAM

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BS Reporter Mumbai/ Ahmedabad
Last Updated : Jan 20 2013 | 10:58 PM IST

Gujarat has registered the highest agricultural growth in real terms during the past decade leaving other states far behind, states a study conducted by Associated Chamber of Commerce and Industry (ASSOCHAM).

The state stood first with a decadal compounded annual growth rate (CAGR) of 10.97 per cent between 2000-01 and 2009-10 among 15 non-special category states.

The neighbouring state, Maharashtra stood second with a growth of 10.50 per cent during the period, while other states too have shown positive growth in the agriculture sector. Chhattisgarh ranked third with 6 per cent of agricultural growth followed by Orissa which registered 5.28 per cent and Andhra Pradesh stood fifth among top 5 states with 5.2 per cent CAGR, the study said.

An independent research carried out by the apex industry body notes that Gujarat made noticeable progress on the agriculture front by converting around 1.5 million hectares of additional land in largely semi-arid region of the state for farming.

This led to a systematic and scientific development of farm sector in Gujarat.

"Revolutionary steps like investment in agricultural infrastructure to improve irrigation system, employment of latest technologies and establishment of a dedicated power grid to ensure regular power supply for agri sector together with a committed leadership are certain significant reasons behind high agricultural growth rate that Gujarat has achieved,” said DS Rawat, secretary general, The Associated Chambers of Commerce and Industry of India (ASSOCHAM).

The industry body attributed the growth in state's agriculture sector to the reasonable monsoon season throughout the decade joined with the periodical increase in the minimum support prices of the agri-commodities by the Central government.

This is believed to have lead to the superlative performance by Gujarat.

The study also recognised the innovative and efficient management of state’s groundwater resources, which proved as a major turning point for Gujarat’s agricultural development.

The state farmers were seen adopting more technology and value addition of agricultural produce to supplement their income.

The increase in agri production not only increased the farmers’ income but it also discouraged them to migrate to urban areas in search of jobs, the ASSOCHAM analysis noted.

Considering the robust agriculture growth in Gujarat, the apex industry body recommended other states to focus on small, minor irrigation projects and watershed facilities which are cheap and affordable considering, irrigation is a major bottleneck in agri sector across majority of states in India.

"Innovative initiatives carried out by Gujarat government must be followed by other states to disseminate technical knowledge and expertise to farmers for better productivity and increased income," Rawat added.

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First Published: Jul 13 2011 | 12:54 AM IST

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