Sector Scenario in Assam Economy : Agriculture

Agriculture plays a vital role in economy of Assam contributing 32.56 percent to the net State Domestic product in 2001-02 at current price (quick estimate). The state of Assam comprising 21 numbers of plain district and 2 numbers of hill districts fall under high potential zone for raising agricultural productivity. Assam is basically an agrarian state with more than 70 percent of its population (2.66 crores as per 2001 census) taking agricultural practices either fully or partially. Out of the total geographical area of 78.43 lakh hectares, almost one-third (30.42 percent) is under net cultivation covering an area of 23.86 lakh hectares (excluding tea area). The gross cropped area occupies about 36.37 lakh hectares. The cropping intensity is 152.43 percent. Rice, which is at present grown mainly during kharif seasons, dominates the agriculture scenario in Assam, of which winter (Sali) rice in 2002-03 occupied an area of 17.49 lakh hectares and autumn (Ahu) rice another 4.64 lakh hectares. The third rice known as summer (Rabi) rice is grown in an area of 3.27 lakh hectares. The area under summer rice has shown an increasing trend with advancement of irrigation facilities by way of Shallow Tube Well (STW). The other foodgrain crops like wheat (0.70 lakh hectares), pulses (1.23 lakh hectares) and maize etc. (0.20 lakh hectares) are also grown. The important commercial crops are oilseeds (3.39 lakh hectares), sugarcane (0.25 lakh hectares) and jute (0.68 lakh hectares).

The Government has, assigned very high priority to agriculture. This was reflected through a quantum jump in rice production to 40 lakh MT in 2000-01 from the level of 32.54 lakh MT in 1998-99. During 2002-03, the production of rice in the state has stagnated to 37.38 lakh MT. The increased production of rice is achieved through creation of assured STW irrigation (1.45 lakh numbers) with assistances of World Bank (ARIASP) and NABARD (SKY) scheme. Although regular flood, drought, heavy population pressure on land and infrastructural weakness are impediments to growth, yet the farmers have started to increase production through the use of technology innovations and appropriate Government policies. During the current 10^th plan onwards the tempo of raising productivity and production must be accelerated along with integration of our economy with outside economies necessitated in the aftermath of liberalization.

Other items that are daily required for consumption in the state like, pulse, wheat and oilseeds (mustard) continue to elude the efforts in achieving self-sufficiency. At present the state produces 0.67 lakh MT of pulses, 1.90 lakh MT of oilseeds and 0.78 Lakh MT of wheat only. But in the Horticulture Sector the State is self sufficient in vegetables, fruits and spices (ginger). The area covered under fruit crop is 1.11 lakh hectares producing 13.35 lakh MT, vegetables in 2.10 lakh hectares producing 28.37 lakh MT and spices in 0.84 lakh hectares producing 1.91 lakh MT.

An analysis of the production status of the food grains, oil seeds and other important crops including horticultural crops over the last 5 years reveals that the overall production growth rate stands at 22.00 percent. But contribution of agriculture to Net Domestic Product (NSDP) has come down 32.56 percent in 2001-02 from 39.63 percent during 1998-99. This is primarily due to fall in prices of agricultural commodities.

Assam is making all endeavors to make the state self sufficient in rice production through installation of STW with the huge investment from NABARD, (RIDF) and EAP. These initiatives have paid off to make the state marginally self sufficient in rice production. This is a stage where Assam is working to consolidate its gains in the front of rice production. But the intricacies of the trade on rice are yet to lower the price of rice to a level affordable by poorer section of the community.

Presently Assam is passing through low price regime of paddy. Recent decision of the Government of India to import 50000 MT of rice from Myanmar for distribution through PDS in the N-E Region will adversely affects the economy of the preponderantly small and marginal farmers of the state. In the time of Assam can ill afford to allow import of rice to the state. On the contrary, efforts are to be made to procure the surplus rice of the state for distribution in the PDS, and other rice distribution programme in the social welfare and DRDA schemes.

Areca nut is another commodity where price has crashed during last one year. This is due to the large scale import of areca nut to the country. This has resulted in loss of income of a very large section of farmers. There is every likelihood of the agriculture in the state being marginalized with a highly competitive multilateral trade environment created by WTO.

Food security as well as poverty alleviation is two major challenges with the state department of agriculture. In view of declining trend in per capita land holding vis-à-vis stagnant agriculture, the focus of attention of the Government is to increase the productivity of crops as well as cropping intensity. In order to meet the above objective the Department of Agriculture has undertaken number of schemes/projects. In view of budgetary constraints in the state’s plan fund, the department is mostly banking upon Externally Added Project (ARIASP), fund under non-lapsable pool and Central Sector Schemes.