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Sunday, June 30, 2019

Crop Production growth and contributions from Area and Yield: Analysis

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Total area grew from 173.64Mha (2001) to 204.2MHa (2017), ie. area growth is 30.6Mha (17.6% of 2001 level). Notional area growth due to yield (total deemed area growth net of actual area growth) is much higher. Yield growth for all crops is 72.2Mha (41.6% of 2001 levels) (see below). 
Area and Yield are % of Total Area at yr-1


Total Area harvested (ha) Value ($m) Value/ha ($/ha) Actual Total Production (tonnes) DA Total Production (ha) DA yield Value/DA ($/ha)
2001 173,640,235 76,620 441 745,520,712 173,640,235 1.000 441
2002 169,140,884 71,640 424 699,220,447 152,696,982 0.903 469
2003 175,921,936 87,167 495 738,528,374 194,012,127 1.103 449
2004 178,860,605 100,771 563 676,155,507 190,849,324 1.067 528
2005 182,147,876 113,029 621 705,988,543 199,853,007 1.097 566
2006 184,054,671 132,057 717 772,349,047 206,511,292 1.122 639
2007 190,375,558 184,577 970 884,957,705 227,651,245 1.196 811
2008 188,694,906 190,962 1012 891,608,664 222,686,495 1.180 858
2009 183,115,593 183,383 1001 813,619,975 214,218,088 1.170 856
2010 192,167,098 250,666 1304 867,818,436 242,807,915 1.264 1032
2011 198,332,237 284,811 1436 951,681,768 252,036,115 1.271 1130
2012 194,034,858 274,425 1414 981,341,470 250,099,696 1.289 1097
2013 196,497,991 250,086 1273 986,586,925 259,022,212 1.318 965
2014 199,853,011 264,792 1325 1,008,506,190 259,693,806 1.299 1020
2015 196,204,262 256,003 1305 987,332,113 247,062,752 1.259 1036
2016 199,448,701 260,676 1307 995,862,804 260,610,005 1.307 1000
2017 204,200,952

990,248,110 276,437,079 1.354












Oilseeds incl seed cotton (at 16.2% out of 41.6%) have made the biggest yield contribution to production, followed by Rice and Coarse grains (non-maize) (6.4% each). Wheat, Maize and Pulses (~3.3% each) were less productive. Among other crops, grown on ~15% of area, there is good contribution from Spices (1%), followed by Fruit & Vegetables (0.8% each) and Plantations (0.58%). Area under Pulses (9.4%) has grown the most, esp since 2015. Oilseeds (4%) matched Pulses but have recently lost area to Pulses. Wheat and Maize are other gainers. Other Coarse cereals have lost area (-4.3%), while Rice was the same. Among other crops, which are invariably profitable, Fruit & Vegetable (1.9% each) were very popular, Plantations and Spices have grown by 0.5-0.7%, while Sugarcane is same or lower. 

Growth in area & yield of each crop can be derived using the %total area at start (ie. 2001), eg. Rice was grown in 25.9% of total area in 2001. Rice yield growth is 6.4 / 25.9% = 24.7%.













Area & Production as % of current total Area & Production
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Current mix of crops, and trends in Area & Production can be more clearly shown by it. For example, though Rice Paddy production has increased from 140Mt (2001) to 168.5Mt (2017), -- and Wheat production has increased from 69.7Mt (2001) to 98.5Mt (2017), they represent a smaller share of total food production (down from 40.7% to 33.1%). Traditional cereals (incl Sorghum, Millet) & sugarcane have lost ground because they were pooled with strongly-performing, competing crops. Revival can happen if the yields or value/tonne are improved significantly. Eg. Sorghum has lost 43% of area & 34% production and its yield was unchanged (down 2.7%). Millet lost 29% of area but only 8.5% production, as its yield went up by 29%. Value/tonne (~unit price) are roughly the same in both cases. So, higher yields of Millet has made Millet relatively attractive, ie. Value/ha for millet went up from 98 to 257; for Sorghum it went up from 83 to 177.

Crops with higher share of production are Seed Cotton (2.8%) & Oilseeds (2.2%), Chick peas (1.4%) & other Pulses (2.4%), Maize (1.3%) and Horticulture (1.2%, from 10.5% to 11.7%). Coarse cereals, Rice, and Sugarcane have lost area relative to other crops. This 10.6% drop in total area is made up by Total Pulses (6.4%), Fruits (1.2%), Vegetables (1%), Seed Cotton (0.8%), Maize (0.7%), Plantations (0.3%).
Change in share of production is shown by dots, and of area by intercepts on x-axis


Crop Area as % of Area in: Crop Production as % of Total DArea

2001 2008 2012 2016 2017 2001 2008 2012 2016 2017
Rice, paddy 25.9% 24.1% 22.0% 21.7% 21.4% 25.9% 22.1% 20.8% 20.6% 19.9%
Oilseeds, et al 12.7% 14.4% 13.4% 13.6% 12.6% 12.7% 16.0% 15.7% 16.6% 15.9%
Wheat 14.8% 14.9% 15.4% 15.3% 15.0% 14.8% 13.1% 13.9% 13.2% 13.2%
Pulses, others 7.7% 8.1% 9.1% 11.3% 12.5% 7.7% 6.7% 7.1% 8.7% 10.1%
Cereals, others 13.3% 10.3% 9.1% 7.6% 7.6% 13.3% 12.8% 11.1% 9.8% 9.8%
Seed cotton 5.2% 5.0% 6.2% 5.4% 6.0% 5.2% 7.6% 8.8% 8.2% 8.0%
Maize 3.8% 4.3% 4.5% 5.0% 4.5% 3.8% 4.6% 4.7% 5.0% 5.1%
Chick peas 3.0% 4.0% 4.3% 4.2% 4.7% 3.0% 3.6% 4.2% 3.7% 4.4%
Vegetables 4.1% 4.5% 5.0% 5.1% 5.1% 4.1% 4.0% 4.2% 4.3% 4.3%
Fruits 2.4% 3.2% 3.6% 3.6% 3.6% 2.4% 2.8% 2.9% 3.3% 3.2%
Plantations 2.5% 2.6% 2.9% 2.8% 2.8% 2.5% 2.5% 2.5% 2.5% 2.4%
Sugar cane + 3.1% 3.2% 3.1% 2.9% 2.6% 3.1% 2.7% 2.5% 2.3% 2.0%
Spices 1.5% 1.4% 1.5% 1.6% 1.6% 1.5% 1.5% 1.6% 1.7% 1.8%

Deemed Area
1. Deemed area projects a notional area in place of next year's production. Production can change by area or yield. If production changes, and yield is held constant, then area must change. This notional area represents change due to both area expansion and yield changes. Aggregation of production with different yielding crops (eg sugarcane and dry beans) can be done without distortion, as areas can be added just like values. Deemed area method uses previous year's yield on next year's production to calculate the notional sown area at the end of each production cycle. NB. Year 1 deemed area is the same as actual area:
Notional area for one cycle  Prod yr=n / Yield yr=n-1 }    Prod yr=n / Prod yr=n-1} * Area yr=n-1
Change in notional area{ Production yr=n /  Prod yr=n-1} * Area yr=n-1  -  Area yr=n-1
Cumulative Deemed Area = addition of change in notional area (above) to the previous deemed area (y=n-1)
Hence formula:
Deemed Area yr=n = Deemed Area yr=n-1 + { -1 + Production yr=n / Production yr=n-1} * Area yr=n-1

2. Area component at each year is cumulative area change from base-line area. Yield component is production growth (eg derived from deemed area calculation) less area component. NB. Yield = Production/ Area
Area at yr-1 = 20,000ha   DArea at yr-1 = 20,000ha (always same)  Area %= 0       Yield c% = 0
Area at yr-3 = 20,000ha   DArea at yr-3 = 15,000ha         Area %= 0                        Yield c%= -5,000ha/20K= -25%
Area at yr-5 = 30,000ha   DArea at yr-5 = 46,000ha  Area %= 10,000ha/20k=50%  Yield c%= 26,000ha/20k=130%
3.               Scenario 1                                                               Scenario 2                         
          Yr 1  Area  =     5ha x 1       +   0ha  x 0.2                     Yr 1  Area  =  0ha x 1      +      5ha  x 0.2 
           Yr 2  Area  = 2*5ha x  1       +  0ha  x 0.2                     Yr 2  Area  =  0ha x 1      +   2*5ha  x 0.2 
           Yr 3  Area  = 3*5ha x  1       +  0ha  x 0.2                     Yr 3  Area  =  0ha x 1      +   3*5ha  x 0.2
           Yr 4  Area  = 4*5ha x  1.25  +  0ha  x 0.3                     Yr 4  Area  =  0ha x 1.25  +   4*5ha  x 0.3
Yr 1  Area  =     5ha     Production = 5                          Area =  5ha     Production = 1 
Yr 2  Area  =   10ha     Production =10                         Area =10ha     Production = 2 
Yr 3  Area  =   15ha     Production =15                         Area =15ha     Production = 3
Yr 4  Area  =   20ha     Production =25                         Area =20ha     Production = 6
Deemed Area calculations
Yr 1  Deemed Area  = 5ha                                             Deemed Area  = 5ha 
Yr 2  DA= 5 + (-1+ 10/5)*5 = 10                                   DA= 5 + (-1+ 2/1)*5 = 10
Yr 3  DA= 10 + (-1+ 15/10)*10 = 15                             DA= 10 + (-1+ 3/2)*10 = 15
Yr 4  DA= 15 + (-1+ 25/15)*15 = 25                             DA= 15 + (-1+ 6/3)*15 = 30
Growth Contribution from yr 1:
Yr 1  Area = 5/5-1  =     0%   Yield c%  =  (5-5)/5 =    0%      Area = 5/5-1  =     0%   Yield c%  =  (5-5)/5 =   0%   
Yr 2  Area = 10/5-1= 100%   Yield c%  = (10-10)/5 = 0%      Area = 10/5-1= 100%   Yield c%  = (10-10)/5 = 0%
Yr 3  Area = 15/5-1= 200%   Yield c%  = (15-15)/5 = 0%      Area = 15/5-1= 200%   Yield c%  = (15-15)/5 = 0%
Yr 4  Area = 20/5-1= 300%   Yield c%  = (25-20)/5 = 100%  Area = 20/5-1= 300%   Yield c%  = (30-20)/5 = 200%
DA yields: Deemed Area yr=n / Area yr=n
Yr 1  DA yield =     5/5 = 1.000                                      DA yield =     5/5 = 1.000
Yr 2  DA yield = 10/10 = 1.000                                      DA yield = 10/10 = 1.000
Yr 3  DA yield = 15/15 = 1.000                                      DA yield = 15/15 = 1.000
Yr 4  DA yield =  25/20 = 1.250                                     DA yield =  30/20   = 1.500

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