Problems and Prospects of Oilseeds Production in Uttar Pradesh
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Study No. 137 Publication No. 185 Problems and Prospects of Oilseeds Production in Uttar Pradesh Prof. Ramendu Roy 2013 Agro-Economic Research Centre University of Allahabad Allahabad-211002 PREFACE India is an agrarian country because more than 70 per cent population of the country directly depends on agriculture and allied sectors. Agriculture is also backbone of economy of the country. A number of crops are grown in the country. Among the crops, wheat, rice, potato, sugarcane, cotton, vegetables etc are main crops of India. The pulses and oilseeds are also sown across the country. These are mostly rainfed crops. India was not self sufficient in food production prior to commencement of Green Revolution while it was self sufficient in pulses and oil seeds. India was importing huge quantity of food grains from global markets to meet food requirement of population of the country. Since the independence, the Government of India had paid maximum attention on agriculture sectors to pay maximum investment in this sector through Five Year Plan. The result of investment in agriculture sector was found very positive and significant. The role of green revolution was also very significant in boosting the production of wheat and rice. The production of wheat and rice has increased manifold due to introduction of green revolution. Now the country is not only sufficient in the production of wheat and rice rather these are being exported to foreign countries. The impact of green revolution was mostly confined to only wheat and rice. On account of this, the farmers have changed their cropping pattern in favour of rice and wheat crops. The expansions of irrigation network, commencement of Green Revolution were also responsible to reduce the area under pulses and oilseeds. There was major setback in the production of oilseeds since 1970s. India was exporter of oilseeds, meals extractions and edible oils till mid 60s. With stagnation in production of oilseeds and rise in population, the production of oilseeds felt short against its demand in early seventies. The demand for edible oil was projected at 10 million tones against the domestic production of 7 million tones. Thus, a short fall of 3 million tones of edible oils had been met by importing edible oil in India. It has also been projected that the demand of edible oils would be 20 million tones per annum by 2015 against the production of edible oils of 7 million tones per annum. To bridge the gap of 13 million tones per annum, the growth rate of 15.10 per annum would be required in the production of edible oils in the country. - 2 - At present the growth rate of edible oils in India is only 4% per annum. Therefore, the govt. of India will have to import huge quantities of the edible oils to keep pace with demand of edible oils requirement in years to come. This is challenge before Govt. of India that how the production and productivity could be increased from present level. A number of constraints are being faced by the farmers in the cultivation of oilseed crops. There is high risk involved in production, yield and price in the production of oilseeds compared with its competing crops. Most of the farmers still hesitate to devote more area under oilseed crops. Taking into account of these aspects, the Ministry of Agriculture Govt. of India has entrusted a study on “Problems and Prospects of oilseeds and oil Palm Production in India” to AERCs to identify major constraints in the edible oilseeds and oil palm cultivation and suggest policy options to increase oilseeds production and productivity in the country, under co-ordinatorship of IIM Ahmedabad. The nine oilseeds are mostly grown in India. Among these oilseeds, rap-seed mustard is most important in Uttar Pradesh which accounted for 13.8% of total area of oilseeds of the country in 2010-11. Therefore, rapeseed/mustard has been allotted to AER Centre, Allahabad to conduct this study in Uttar Pradesh. Three districts namely, Agra, Etah and Lakhimpur Kheri were selected. Two hundred farmers from 6 villages of 3 blocks of 3 selected districts were selected to know their views and opinions related to cultivation of rapeseed/mustard. The study reveals that the prospects of mustard are better in U.P. due to continuous hike in the MSP. Now the farmers are taking keen interest in the cultivation of mustard. Against this, the area under soyabean and groundnut found negative trends during the study period. This study had been planned and conducted under overall my guidance and supervision. The draft of report of the study has been done by Shri. D.K. Singh, Ex. Research Officer of the Centre under my supervision. Sri. Ramji Pandey, Sri. R.S. Maurya, Sri. Hasib Ahmad and Dr. H.C. Malviya collected primary data. The tabulation and analysis of data have been done by Sri. R.S. Maurya and Sri Hasib Ahmad. Smt. Nirupama Nigam typed the report. Shri. H.C. Upadhyay did Xeroxing. Sri S.D. Singh and Mrs. M.R. Kesarwani did secretarial services. I am thankful to all of them. I am also thankful to Prof. Dr. Vijay Paul Sharma, Centre for Management in Agriculture (CAM) IIM, Ahmedabad for their valuable guidance to carry out this study in a scientific way. - 3 - I am extremely thankful to all the government officials of U.P. for their valuable help and cooperation during collection of primary and secondary data for the study. Comments and suggestions for the improvement of the report are welcome and will be thankfully acknowledged. (Ramendu Roy) Agro-Economic Research Centre Prof. & Hon. Director University of Allahabad Allahabad. Date 29.06.2013 - 4 - CREDIT Project Director Prof. Ramendu Roy Drafting of Report Shri D.K. Singh Collection of Primary Data Shri Ramji Pandey Shri R.S. Maurya Shri Hasib Ahmad Dr. H.C. Malviya Tabulation & Analysis of Data Shri R.S. Maurya Shri Hasib Ahmad Functional Analysis Shri Hasib Ahmad Data Entry & Smt. Nirupama Nigam Computer Operations Secretarial Services Smt. M.R. Kaserwani & Shri S. D. Singh Xeroxing Shri H.C. Upadhyay Support Services Shri Raju Kumar Smt. Ramsawari Shri Virendra Kumar - 5 - CONTENTS Pages Preface 2-4 Credit 5 Contents 6-8 List of Tables 9-11 CHAPTER-I Introduction 12-20 I.I Role of Agriculture in the state economy I.II Importance of Oilseeds in the State Agriculture I.III Problems of Oilseeds Production I.IV Objectives of the Study I.V Organization of the Report CHAPTER-II. Coverage, Sampling Design and Methodology 21-25 II.I Coverage and Sampling Design II.II Conceptual Framework and theoretical Model of the Study CHAPTER- Overview of Oilseeds Sector: Current Status and 26-70 III. Growth Behaviour III.1 Area under selected crops in U.P. between TE 1973-74 and TE 2009-10 III.2 Changes in Gross Cropped Area, Area Expansion and Crop Intensification effects: TE 1973-74 to 2009-10 III.3 Net Changes in Area in Absolute and Relative terms for Major Foodgrain Crops in Selected Districts of U.P. in TE 2009-10 over TE 1993-94. III.4 Net Changes in Absolute and relative Terms in Area of Oilseeds and Sugarcane Crop in Selected Districts of U.P. : TE 1993-94 and 2009-10 III.5 Trends in Average Area, Production and Yield of Oilseeds in the State III.6 Changing Shares of Kharif and Rabi Oilseeds in 71-119 major 15 Oilseeds, 15 Producing districts of the State: TE 1993-94 and TE 2009-10 III.7 Share of Selected Oilseed, TE 2009-10 III.8 Share of Oilseeds Acreage in the State to all India Area TE 1993-94 and TE 2009-10 III.9 Production Share of Major Oilseeds of U.P. in All - 6 - India Production for TE 1993-94 and TE 2009-10 III.10 Irrigated Area under Oilseeds in the Selected Districts in the State: TE 1993-94 and TE 2009-10 III.11 Average Area Production and Yield of Mustard the State: 1951 III.12 Share of Area under Mustard in the Selected districts to Total area under Oilseed Crops in the State: TE 1983-84 to TE 2009-10 III.13 Share of Selected districts in Mustard Production in the State: TE 1983-84 to TE 2009-10 III.14 Share of Mustard Irrigated Area to Area under Mustard and Gross Irrigated Area of the Districts: TE 1983-84 to TE 2009-10 III.15 Growth Trends (Absolute and Compound Annual Growth Rates) in Area, Production and Yield of Mustard (1970s, 1980s, 1990s, 2000s and 1970-71 to 2009-10 III.16 Compound Annual Growth in Production of Mustard in the Selected districts and U.P. as a whole in different decades (1970s, 1980s, 1990s and 2000s) and from 1970-71 to 2009-10 III.17 Compound Annual Growth Rate in Productivity of Mustard in Selected Districts and U.P. as a whole in different decades i.e. 1970s, 1980s, 1990s, 2000s and 1970-71 to 2009-10 in U.P. III.18 Variability in Area of Mustard in Selected districts of U.P. (1970s, 1980s, 1990s and 2000s III.19 Variability in Production of mustard in the selected districts of U.P. (1970s, 1980s, 1990s and 2000s III.20 Variability in Productivity of Mustard in Selected Districts of U.P. (1970s, 1980s, 1990s and 2000s) III.21 Variability in Area, Production and Productivity of Mustard (1970s, 1980s, 1990s and 2000s in U.P. III.22 Variability in Annual Whole Sale Prices of Major Oilseeds and Edible Oils in the State. III.23 Variability in Annual Whole sale Prices of Edible Oils in the State (from 1989-90 to 2010-11) CHAPTER-IV Problems and Prospects of Mustard Production: An 71-119 Empirical Analysis IV.1 Main Features of Selected villages IV.2 Main Features of Sample Households IV.3 Leased in - Leased out Land IV.4 Irrigation Sources IV.5 Cropping Pattern IV.6 Average Yield of Major Crops on Sample Households IV.7 Production, Retention and Sale Pattern of Mustard