Agriculture and Allied sectors: Trends in share of crop and allied sectors in GSDP

Contribution to Economy: Agriculture and allied sectors form the backbone of Telangana’s economy, playing a crucial role in both employment and livelihood.

Rural Workforce Dependency:

  • 66.15% of the rural workforce in Telangana is engaged in agriculture and allied sectors.
  • 47.34% of the overall workforce in the state is employed in these sectors.
  • The agriculture sector’s contribution to Telangana’s Gross State Value Added (GSVA) has remained consistent, hovering around 16-17%.

Recent Decline in Contribution:

  • The sector’s contribution to GSVA at current prices decreased by 1.2%.
  • It dropped from 17.0% in 2022-23 (FRE – First Revised Estimates) to 15.8% in 2023-24 (AE – Advance Estimates).

Decline in Crops Sector Contribution:

  • The Crops sector’s contribution to Telangana’s Gross State Value Added (GSVA) at current prices decreased by 1.0%.
  • It dropped from 8.5% in 2022-23 (FRE – First Revised Estimates) to 7.5% in 2023-24 (AE – Advance Estimates).

Factors Behind the Decline:

  • Delayed Monsoon: The Southwest Monsoon arrived 17 days late, reaching Telangana on June 22, 2023, instead of the usual June 5.
  • Rainfall Variability: Significant fluctuations in rainfall were observed throughout the monsoon season, with critical deficiencies during August and October 2023.
  • This negatively affected crop yields, especially for dry crops such as Redgram, Maize, and Bengal Gram.

Telangana’s primary sector GSVA from 2022-23 (FRE) to 2023-24 (AE):

  • Crops: Declined from 49.8% to 47.5% (down 2.3%) due to unfavorable weather.
  • Livestock: Increased from 44.7% to 46.8% (up 2.1%) due to better farming practices and demand.
  • Forestry and Logging: Stable at 2.2%.
  • Fishing and Aquaculture: Grew from 3.3% to 3.5%.

sub-sector contributions to agriculture growth in Telangana between 2022-23 (FRE) and 2023-24 (AE):

  • Crops Sector: Declined sharply from 7.89% to -0.39%, indicating a significant drop in crop production.
  • Livestock: Increased from 2.35% to 3.99%, showing notable growth in livestock farming.
  • Forestry and Logging: Improved slightly from -0.93% to 0.07%, indicating a marginal recovery.
  • Fishing and Aquaculture: Decreased from 0.44% to 0.36%, reflecting a small decline.
  • Vanakalam Season: Sown area grew by 5%, increasing from 142 lakh acres in 2021-22 to 147 lakh acres in 2022-23.
  • Yasangi Season: Significant rise in sown area, from 56 lakh acres in 2021-22 to 75 lakh acres in 2022-23.
  • Total Gross Sown Area: Increased from 198 lakh acres in 2021-22 to 222 lakh acres in 2022-23, indicating an overall positive trend in agricultural sown area.
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