Agriculture
Kerala, with its diverse topographic, climatic and soil features is conducive to diversified cropping pattern comprising cash crops, food crops and plantation crops. The sector has witnessed significant changes over the years, such as transformation from food crops to non-food crops. Over the last two decades, the share of non-agricultural area (including cultivable wasteland and fallow land other than the current fallow) in the total geographical area of the State has increased considerably. There has also been a decline in land holdings’ average size to 0.18ha (Agriculture Census 2015-16).
Trends in Agricultural Income in Kerala
In Kerala, the agriculture sector continues to be the primary source of livelihood for a majority of the population. Agriculture and allied sector in the State contributed about 11.28 per cent to total Gross State Value Added (GSVA) in 2021-22(Q) at current prices. In the 13th Five-Year Plan period, agriculture sector in the State was severely impacted due to the unforeseen adversities of cyclone Ockhi (2017), major flood in 2018, and the COVID-19 pandemic. After attaining annual growth rate of 2.11 per cent in 2017-18, it declined to negative growth rates in two succeeding years. However, the growth recorded an improvement to 4.64 per cent in 2021-22 from 0.24 per cent in 2020-21 which is higher than the national growth rate of three per cent (P) at constant prices).
With a little scope for increasing the area under cultivation due to the shrinking land availability, the only way to increase farmers’ income is to increase crop productivity. The rise in productivity of crops requires a serious reliance on modern agricultural science. Modernisation of agriculture based on scientific inputs and farming practices ensuring higher farm business income and ecological sustainability needs to be emphasised in this context. Diversification of agriculture assumes importance to accomplish the vision of the State of imparting income security to the farmers. Considering the potential for creation of employment opportunities and enhancing farmer’s income, improving the exports and strengthening domestic supply chains, enhanced emphasis on value addition need to be the thrust areas of the sector.
Gross Value Added in Agriculture
The share of agriculture and allied sectors in the country’s total GVA at constant prices has declined from 17.8 per cent in 2013-14 to 15.5 per cent (P) in 2021-22 (Table 3.1.1). The performance of agriculture sector in the State has been fluctuating in the 13th Five-Year Plan period. The sector’s share in total GSVA (at constant 2011-12 prices) of the State declined to 8.88 per cent in 2021-22 (Q), compared to 9.52 (P) per cent in 2020-21 (Table 3.1.1). The details are given below:
(Table 3.1.1) Share of agriculture and allied sectors in GVA/GSVA National and State level, constant prices 2013-14 to 2021-22
|
Year
|
Share of Agriculture and allied sectors in Total GVA (India) (%)
|
Share of Agriculture and allied sectors in GSVA Kerala) (%)
|
|
2013-14
|
17.8
|
12.37
|
|
2014-15
|
16.5
|
11.92
|
|
2015-16
|
15.4
|
10.74
|
|
2016-17
|
15.2
|
9.96
|
|
2017-18
|
15.1
|
9.61
|
|
2018-19
|
14.6.
|
9.03
|
|
2019-20
|
15.0
|
8.55
|
|
2020-21
|
16.3
|
9.52(P)
|
|
2021-22
|
15.5(P)
|
8.88(Q)
|
Note: (P) Provisional, (Q) Quick
Source: National Accounts Statistics 2022, GoI; Directorate of Economics and Statistics, GoK
The annual growth rate (GSVA at constant 2011-12 prices) of agriculture and allied activities (including crops, livestock, forestry and logging and fishing and aquaculture) has been fluctuating over the years. An analysis of the growth rate over the last five years recorded a positive growth in 2017-18 at 2.11 per cent (Department of Economics and Statistics, GoK). From 2018-19, the growth rate was negative. In 2021-22, growth rate of agriculture and allied activities was 4.64 per cent compared to 0.24 per cent in 2020-21 (Table 3.1.2). The growth in crop sector was 3.63 per cent compared to 0.46 per cent in 2020-21(Department of Economics and Statistics 2022, GoK).
(Table 3.1.2) Growth rate in Gross Value Added (GVA) in Agriculture and Allied Sectors in Kerala 2013-14 to 2021-22
|
Year
|
Growth rate per annum in Kerala (%)
|
|
2013-14
|
(-)6.31
|
|
2014-15
|
0.02
|
|
2015-16
|
(-)5.10
|
|
2016-17
|
(-)0.65
|
|
2017-18
|
2.11
|
|
2018-19
|
(-)2.09
|
|
2019-20
|
(-)2.56
|
|
2020-21
|
0.24
|
|
2021-22
|
4.64 (P)
|
|
Source: Department of Economics and Statistics, GoK
Note: (P) Provisional
|
Trends in Growth Rate:
The all India growth rate of agriculture and allied sectors has been fluctuating since 2013-14. In 2021-22, growth in agriculture, forestry and fishing declined to 3.0 per cent compared to 3.3 per cent in 2020-21. The share of crops, livestock, forestry and fishing in Gross Value Added (GVA) of the country had been fluctuating since 2013-14. As per the provisional estimates of national income, the share declined to 15.5 per cent in 2021-22 as compared to 16.3 per cent recorded in 2020-21 (Table 3.1.1).
Source:
(1)Economic Review 2010-2022
(2)Directorate of Fisheries
(3) Livestock census report/animal husbandry department
(4) Directorate of Economics and Statistics