The average rate of output growth since the 1950s has been more than 2.5 percent per year and was greater than 3 percent during the 1980s, compared with less than 1 percent per annum during the period from 1900 to 1950. Most of the growth in aggregate crop output was the result of an increase in yields, rather than an increase in the area under crops. The yield performance of crops has varied widely.
The national growth rates mask variability in the performance of different states, but in the regions with the greatest increases three categories are discernible. The first category includes states or areas that have an exceptionally high agricultural growth rate--Punjab, Haryana, and western Uttar Pradesh. The second is states or areas that have high growth rates, but not as high as the first category--Andhra Pradesh, Maharashtra, and Jammu and Kashmir. A third category has a lesser growth rate and includes Bihar, Gujarat, Karnataka, Orissa, Rajasthan, Tamil Nadu, eastern Uttar Pradesh, and West Bengal. These eight states, however, comprise 55 percent of the total food-grains area.
Some observers believe that the increase in productivity has been an important factor explaining the satisfactory growth of food-grain production since the mid-1960s. However, the gains in productivity remain confined to select areas. Between FY 1960 and FY 1980, yields increased by 125.6 percent in North India (Punjab, Haryana, and western Uttar Pradesh). The increase in the other regions was much less: central India, 36 percent; eastern, 22.7 percent; southern, 58.3 percent; and western India, 31.6 percent. The national average was nearly 40.9 percent. Part of this disparity can be explained by the fact that during this period Punjab and Haryana were way ahead of other states in terms of irrigated area, intensity of irrigation, and intensity of cropping. Availability of irrigation is one of the crucial factors governing regional variations.
As a result of a good monsoon during FY 1990, food grain production reached 176 million tons, 3 percent more than in FY 1989. The production of rice and wheat was 74.6 million and 54.5 million tons, respectively. Among the commercial crops, sugarcane and oilseeds reached production levels of 240.3 million tons and 21.8 million tons, respectively. The increased production in FY 1990 was mainly the result of continuing increases in yields for all the main crops--rice, wheat, pulses, and oilseeds. In the case of oilseeds and sugarcane, higher production was also the result of the increased number of hectares planted.
The growth in food-grain production did not occur in a linear trend, but as a series of spurts depending mostly on the weather, input availability, and price policy. Aggregate growth was composed of an even split between area expansion and yield growth before FY 1964. Since FY 1967, the contribution of growth in yields has become dominant and attests to the vigor with which agriculture has responded to the opportunities opened up by new seed, water, and fertilizer technology.
A large number of farmers depend on livestock for their livelihood. In addition to supplying milk, meat, eggs, and hides, animals, mainly bullocks, are the major source of power for both farmers and drayers. Thus, animal husbandry plays an important role in the rural economy. The gross value of output from this sector was Rs358 billion in FY 1989, an amount that constituted about 25 percent of the total agricultural output of Rs1.4 trillion.
In FY 1992, India had approximately 25 percent of the world's cattle, with a collective herd of 193 million head. India also had 110 million goats, 75 million water buffalo, 44 million sheep, and 10 million pigs. Milk production in FY 1990 was estimated to have reached 53.5 million tons, and egg production had reached a level of 23.3 billion eggs. Dairy farming provided supplementary employment and an additional source of income to many small and marginal farmers. The National Dairy Development Board was established in 1965 under the auspices of Operation Flood at Anand, in Gujarat, to promote, plan, and organize dairy development through cooperatives; to provide consultations; and to set up dairy plants, which were then turned over to the cooperatives. There were more than 63,000 Anand-style dairy cooperative societies with some 7.5 million members in the early 1990s. The milk produced and sold by these farmers brought Rs320 million a day, or more than Rs10 trillion a year. The increase in milk production permitted India to end imports of powdered milk and milk-related products. In addition, 30,000 tons of powdered milk were exported annually to neighboring countries.
Operation Flood, the world's largest integrated dairy development program, attempted to establish linkages between rural milk producers and urban consumers by organizing farmer-owned and -managed dairy cooperative societies. In the early 1990s, the program was in its third phase and was receiving financial assistance from the World Bank and commodity assistance from the European Economic Community. At that time, India had more than 64,000 dairy cooperative societies, with close to 7.7 million members. These cooperatives established a daily processing capacity of 15.5 million liters of whole milk and 727 tons of milk powder.