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Sunday, June 30, 2019

Agriculture value added per Hectare (India, 2017, current $)

This indicator is important from farmers' incomes prospective. It is worth looking at the impact of agriculture value added on cropped area and export potential given the tendency for surplus production (ie. domestic yield vs global yields). High agriculture value added should result in higher incomes and rising area under the crop, which may not be possible due to climate & water, soil-types & topography and market demand. 

Fruit and vegetables (ie. horticulture) are the most profitable crops. Ginger and Garlic are similar, though they are classified as spices. Plantations such as Araca nuts and Rubber, Dry Chillies and Walnuts are there in the $2,000 to $4,000/ha level. Crops in the $1,500 to $2,000/ha level should be considered profitable as it is bound by Sugarcane at the top and Rice (which includes Basmati) at the bottom. Coffee and Nutmeg et al are among other profitable crops. Next level (from $800 to $1,500/ha) has Wheat, Castor and Jute at the bottom, and includes Cotton, Coconut, Cashew and Tea. All other spices (eg. pepper, anise, coriander, fennel) are present here. This should be the lowest income level for sustainable farming. For example, wheat is popular only because of MSP and steady returns due to stable wheat yields. 

Lowest income level gives rise to subsistence farming and comprises 42% of gross cropped area. It is entirely made up of pulses, coarse grains and oilseeds (see below). To be fair, some value can be derived from crop residue for animal feed. Given the inhospitable or rain-fed conditions, farmers can only swap between low-valued added crops depending on market demand. It also means that efforts to simultaneously expand the production of pulses, coarse grains and oilseeds would to be very difficult. Double cropping will increase value addition per hectare, and to that extent growing low-value crops incl wheat, oilseeds, pulses and cereals will not be subsistence farming. 

There is potential do better, eg. these crops will give good returns under irrigation; new varieties are improving yields; and GM Maize is grown successfully in many parts of the world which India can copy. PV Solar & livestock are good adjuncts for farmers.

 Crop details                                                   Income ($/ha)               Area ('000ha)                             Type
Groundnuts, with shell 754 5,030 oilseed
Maize 630 9,219 coarse grain
Sunflower seed 611 317 oilseeds
Barley 596 656 coarse grain
Pulses, nes 589 2,149 pulses
Chick peas 566 9,539 pulses
Peas, dry 558 833 pulses
Rapeseed 554 5,913 oilseeds
Soybeans 493 10,399 oilseeds
Pigeon peas 370 5,387 pulses
Sesame seed 368 1,571 oilseeds
Lentils 314 1,658 pulses
Safflower seed 265 87 oilseeds
Millet 250 9,094 coarse grain
Linseed 237 364 oilseeds
Cocoa, beans 185 83 plantation
Oilseeds nes 184 220 oilseeds
Sorghum 170 5,862 coarse grain
Beans, dry 150 15,427 pulses

1. Above $4000/ ha 
Average = $ 7,675/ha,  Area = 8.70 ha (4.34% of total)  &  Value = $ 66.75b (27.23% of total)
Fruit - 57%,  Vegetables - 34.8%,  Ginger & Garlic - 8.2%

2. $2000 to $4000/ ha (Tobacco to ~Potatoes) 
Average = $ 3,020/ha,  Area = 7.16 ha (3.57%)  &  Value = $ 21.63b (8.82%)
Fruit- 2.1%, Vegetables- 66.5%, Spice- 11.7%, Arecanuts, Rubber & Walnuts- 10.1%, Tobacco- 6.5%

3. $1500 to $2000/ha (Rice up to Sugarcane)
Average = $ 1,640/ha,  Area = 49.90 ha (24.89%) &  Value = $ 81.85b (33.39%)
Rice - 87.8%,  Sugarcane - 7.6%,  Fruit - 3.5%,  Nutmeg - 0.2%,  Coffee - 0.9%

4. $800 to $1500/ha (Wheat to below Rice)
Average = $ 905/ha,  Area = 50.94 ha (25.41%) &  Value = $ 46.10b (18.80%)
Wheat- 60.1%, Cotton, Castor & Jute- 27.3%, Coconut- 4.1%, Spices- 3.7%, Cashew- 1.9%, Tea- 1.2%,  Vegetables- 1.7%

5. Below $800/ha  (all below ~Wheat)
Average = $ 344/ha,  Area = 83.81 ha (41.80%) &  Value = $ 28.84b (11.76%)
Pulses- 41.75%  incl. Maize, Millet, Sorghum, Barley
Coarse Grains- 29.63%  incl. Dry beans, Chick peas, Pigeon peas, Lentils, Dry peas
Oilseeds- 28.5%  incl.  Groundnuts, Soybeans, Rapeseed, Sesame
Cocoa beans?- 0.1%

 Crop details                                                         Income ($/ha)              Area ('000ha)                                 Type
Papayas 16,070 134 fruit
Melons, other (inc.cantaloupes) 13,878 46 fruit
Grapes 13,409 137 fruit
Grapefruit (inc. pomelos) 10,546 15 fruit
Okra 10,364 507 vegetables
Bananas 9,458 860 fruit
Apples 9,378 305 fruit
Cauliflowers and broccoli 9,376 454 vegetables
Oranges 9,355 601 fruit
Fruit, tropical fresh nes 8,641 452 fruit
Pineapples 7,283 111 fruit
Fruit, citrus nes 6,921 83 fruit
Tomatoes 6,910 797 vegetables
Lemons and limes 6,539 248 vegetables
Mangoes, mangosteens, guavas 6,353 2,212 fruit
Garlic 6,176 321 spice
Cabbages and other brassicas 5,697 395 vegetables
Ginger 5,500 168 spice
Peas, green 5,290 530 vegetables
Vegetables, fresh nes 4,696 2,529 vegetables
Cherries 3,948 4 fruit
Potatoes 3,778 2,179 vegetables
Pears 3,756 44 fruit
Areca nuts 3,666 455 nuts
Plums and sloes 3,296 32 fruit
Onions, dry 3,039 1,306 vegetables
Peaches and nectarines 2,853 41 fruit
Rubber, natural 2,663 457 plantation
Chillies and peppers, green 2,450 8 vegetables
Chillies and peppers, dry 2,443 840 spice
Eggplants (aubergines) 2,369 733 vegetables
Lettuce and chicory 2,362 172 vegetables
Sweet potatoes 2,329 128 vegetables
Watermelons 2,290 30 fruit
Carrots and turnips 2,260 36 vegetables
Cassava 2,255 199 vegetables
Walnuts, with shell 2,113 31 nuts
Tobacco, unmanufactured 2,069 468 tobacco
Sugar cane 1,950 3,813 sugarcane
Fruit, fresh nes 1,903 1,741 fruit
Coffee, green 1,698 450 plantation
Rice, paddy 1,603 43,789 rice
Nutmeg, mace and cardamoms 1,517 108 spice
Pumpkins, squash and gourds 1,424 536 vegetables
Fruit, stone nes 1,416 1 fruit
Spices, nes 1,196 896 spice
Pepper (piper spp.) 1,105 132 spice
Apricots 1,054 5 fruit
Mushrooms and truffles 1,020 41 mushrooms
Cucumbers and gherkins 1,019 26 vegetables
Coconuts 1,019 2,082 plantations
Figs 1,017 6 fruit
Beans, green 979 242 vegetables
Tea 970 622 tea
Seed cotton 934 12,200 oilseed/fibre
Cashew nuts, with shell 922 978 plantation
Wheat 869 30,600 wheat
Anise, badian, fennel, coriander 858 872 spice
Castor oil seed 857 866 oilseed
Bastfibres, other 857 67 fibre
Jute 813 770 fibre

Doubling farmers' incomes: how to do it by NITI Aayog
https://niti.gov.in/writereaddata/files/document_publication/DOUBLING%20FARMERS%20INCOME.pdf

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