Study No.111 PROBLEMS AND PROSPECTS OF OILSEED PRODUCTION IN MADHYA PRADESH AGRO- ECONOMIC RESEARCH CENTRE FOR MADHYA PRADESH AND CHHATTISGARH Jawaharlal Nehru Krishi Vishwa Vidyalaya, Jabalpur (M.P.) 2014 PROBLEMS AND PROSPECTS OF OILSEED PRODUCTION IN MADHYA PRADESH PROJECT TEAM Data collection Dr. Deepak Rathi Mr. C.K. Mishra Mr. Arvind Dangi Mr. S. C. Meena Mr. Ravi Singh Chouhan Mr. Dushyant Kumar Tabulation & Compilation of Data Mr. Dushyant Kumar Mr. Arvind Dangi Mr. S. C. Meena Mr. Ravi Singh Chouhan Interpretation and Report Writing Dr. Hari Om Sharma Dr. Deepak Rathi Coordinator Prof. Vijay Paul Sharma Chairman Centre for Management in Agriculture Indian Institute of Management Ahmadabad AGRO- ECONOMIC RESEARCH CENTRE FOR MADHYA PRADESH AND CHHATTISGARH Jawaharlal Nehru Krishi Vishwa Vidyalaya, Jabalpur (M.P.) PREFACE The present study entitled “Problem and Prospects of Oilseed Production in Madhya Pradesh” has been assigned by the Directorate of Economics and Statistics Ministry of Agriculture Government of India to this centre under the close coordination of Centre for Management in Agriculture Indian Institute of Management Ahmadabad. The study comprises 240 soybean grower of Chhindawara, Khandwa and Narsinghpur districts and 120 mustard growers of Mandla, Morena and Chhatarpur districts of Madhya Pradesh. The study reveals that oilseeds production has increased tremendously due to successful implementation of TMO and ISOPOM programme in the State. The cultivation of soybean and mustard was also found profitable over there competing crops i.e. maize and wheat. There is still tremendous scope for increasing yield of these crops in the State as farmers were found to harvest below the potential yield of the area under study. The present study was conducted by Dr. H. O. Sharma and Dr. Deepak Rathi of this Centre. They have done field investigation, tabulation analysis, interpretation and drafting of the report. I wish to express my deep sense of gratitude to them and their team members namely; Mr. Arvind Dangi, Mr. C.K. Mishra, Mr. S.C. Meena, Mr. Dushyant Kumar and Mr. Ravi Singh Chouhan for their untiring efforts in bringing this innovative study to its perfect shape. I extend heartfelt thanks to the Coordinator of this study Prof. Vijay Paul Sharma, Chairman, Centre for Management in Agriculture, Indian Institute of Management, Ahmadabad for providing valuable guidelines and time to time suggestions through e-mails for conducting the study successfully. On behalf of the Centre, I express deep sense of gratitude to Dr. V.S. Tomar, Hon’ble Vice-Chancellor and chairman Advisory Body of AERC, Jabalpur, Dr. S.S. Tomar, Director Research Services, Dr. S.K. Rao Dean, Faculty of Agriculture, and Dr. P.K. Mishra, Director Instruction, Jawaharlal Nehru Krishi Vishwa Vidyalaya, Jabalpur for providing all facilities and valuable guidance during various stages in successful completion of this study of high importance. I express sincere thanks to Shri Rameshwar Patel, Deputy Director of Agriculture, Khandwa; Shri J.S. Gurjar, Deputy Director of Agriculture, Chhindawara; Shri K.K. Tiwari, Deputy Director of Agriculture, Narsinghpur; Shri I.S. Baghel, Deputy Director of Agriculture, Chhatarpur; Shri K. S. Netam, Deputy Director of Agriculture, Mandla and Shri D.C. Sharma, Deputy Director of Agriculture, Morena and their field staff for providing not only secondary data but also extending great assistance in collection of field data from the selected respondents . I hope the findings and suggestions made in the study would be useful to policy makers of the states and Govt. of India Date : 31.05.2014 ( Hari Om Sharma) Place: Jabalpur Prof. & Director CONTENTS Page S. No. Particulars No. Chapter I: Introduction 1-15 1.1 Introduction 1 1.2 Objectives of the Study 5 1.3 Role of Agriculture in the State Economy 5 1.4 Importance of Oilseeds in State Agriculture 13 1.5 Problems in Oilseeds Production 14 1.6 Organisation of the Report 15 Chapter II: Coverage, Sampling Design and Methodology 16-22 2.1 Coverage and Sampling Design 16 2.2 Sources of data 19 2.3 Tools of Data Collection 19 2.4 Year of the study 20 2.5 Conceptual Framework and Theoretical Model of the Study 20 Chapter III: Overview of Oilseeds Sector: Current Status and Growth Behavior 23-57 3.1 Changes in Cropping Pattern in Madhya Pradesh: 23 3.2 Selected Oilseeds for the detailed Study 33 3.2.1 Soybean 33 3.2.2 Mustard 38 3.3 Growth Trends in Area, Production and Yield of Selected Oilseeds 43 3.3.1 Soybean 44 3.3.2 Mustard 47 Variability in Area, Production and Yield of Soybean and Mustard vis-à-vis 3.4 49 competing crops maize and wheat 3.4.1 Soybean vis-à-vis maize 50 3.4.1.1 Area 50 3.4.1.2 Production 51 3.4.1.3 Productivity 52 3.4.2 Mustard vis-à-vis Wheat 53 3.4.2.1 Area 53 3.4.2.2 Production 54 3.4.2.3 Productivity 54 3.5 Variability in Annual Prices of Selected Oilseeds and their Competitive Crops 55 3.5.1 Soybean 55 3.5.2 Mustard 56 3.6 Factors Underlying Changes in Cropping Pattern 57 CHAPTER IV: Problems and Prospects of Oilseed Production: An Empirical Analysis 58-91 4.1 Soybean 58 4.1.1 Main Features of Sample Soybean Growers 58 4.1.1.1 Socio-economic Status 58 4.1.1.2 Land ownership pattern 59 4.1.1.3 Terms of lease 60 4.1.1.4 Sources of Irrigation 61 4.1.1.5 Cropping pattern 61 4.1.1.6 Average yield of major crops 63 4.1.2 Production, Retention and Marketed Surplus Pattern of Oilseeds 64 4.1.3 Comparative Economics 65 4.1.3.1 Profitability of Soybean vis-à-vis Maize 65 4.1.3.2 Profitability vis-à-vis risk in soybean production 67 4.1.4 Improved Technology and markets for Soybean 68 4.1.4.1 Access to improved Technology and markets for Soybean 68 Page S. No. Particulars No. 4.1.4.2 Yield Gap Analysis 69 4.1.5 Marketing pattern of Soybean 69 4.1.6 Sources of Technology and Market Information 70 4.1.7 Constraints in Cultivation of Soybean 71 4.1.8 Suggestions for improving Production and Productivity of Soybean 75 4.2 Mustard 76 4.2.1 Main Features of Selected Mustard Growers 76 4.2.1.1 Socio-economic status of Sample mustard growers 76 4.2.1.2 Land ownership pattern 77 4.2.1.3 Terms of lease 78 4.2.1.4 Irrigation sources 78 4.2.1.5 Cropping pattern 79 4.2.1.6 Average yield of major crops 81 4.2.2 Production, Retention and Marketed Surplus Pattern of Mustard 82 4.2.3 Comparative Economics 82 4.2.4 Profitability vis-à-vis risk in soybean production 84 4.2.5 Improved Technology and Markets for Oilseeds 85 4.2.5.1 Access to improved technology and markets for Oilseeds 85 4.2.6 Yield Gap Analysis 86 4.2.7 Marketing pattern of Mustard 86 4.2.8 Sources of Technology and Market Information 87 4.2.9 Perceived Constraints in Cultivation of Mustard 88 4.2.10 Suggestions for improving Production and Productivity of Mustard 91 CHAPTER V: CONCLUDING REMARKS AND POLICY SUGGESTIONS 92-105 5.1 Specific Objectives 92 5.2 Data base and Methodology 93 5.3 Major Findings 94 5.4 Policy Suggestions 104 COORDINATOR'S COMMENTS ON THE DRAFT REPORT 105 ACTION TAKEN REPORT ON COORDINATOR'S COMMENTS ON THE DRAFT 106 REPORT LIST OF TABLES S. Page Particulars No. No. Chapter I: Introduction 1-15 1.1 Share of different oilseeds in India (2010-11) 1 1.2 Area, Production and Yield of Oilseeds in different states of India (2010-11) 2 1.3 Area, Production and Yield of Soybean in different states of India (2010-11) 2 1.4 Area, Production and Yield of Mustard in different states of India (2010 - 11) 2 1.5 Location of Madhya Pradesh 5 1.6 Agro-Climatic Regions and covered Districts /Tehsils in Madhya Pradesh 7 1.7 Soil types and districts covered in Madhya Pradesh 8 1.8 Seasons and their periods in Madhya Pradesh 8 1.9 Population parameters of Madhya Pradesh (Census 2011) 9 1.10 Land use Classification of Madhya Pradesh (TE 2010) 9 1.11 Irrigation Status of Madhya Pradesh 10 1.12 Gross State Domestic Products of Madhya Pradesh at constant price (2004 - 05) 12 Percentage contribution of different sectors in Gross State Domestic Products 1.13 13 at Constant Rate (2004-05) Chapter II : Status of Rice in Madhya Pradesh 16-22 2.1 Classification of districts according to area and yield. 16 2.2 Classification of different district according to area & yield of soybean (TE 2011). 17 2.3 Classification of different district according to area and yield of Mustard (TE 2011) 18 2.4 Number of respondents in Selected Crops 19 Chapter III : Overview of Oilseeds Sector: Current Status and Growth Behavior 23-57 Changes in area under crops to total cropped during different periods in Madhya 3.1 24 Pradesh Net changes in absolute and relative terms of TE 2009-10 over TE 1993-94 for major 3.2 25-26 crops 3.3 Average Area, Production, and Yield of Total Oilseeds in M.P.: 1951-52 to 2009-10 27 Changing Shares of area and production of Oilseeds in TE 2009-10 as compared to TE 3.4 28 1993-94 in Major oilseeds Producing Districts in Madhya Pradesh 3.5 Share of Selected Oilseeds: TE 2009-10 31 3.6 Share of Major Oilseeds Acreage in the State: TE 1993-94 and TE 2009-10 31 3.7 Share of Major Oilseeds Production in the State: TE 1993-94 and TE 2009-10 32 3.8 Present status of soybean crop in India (Average TE- 2010) 33 3.9 Average Area, Production, and Yield of Soybean in the State: 1951-52 to 2009-10 33 Share of Major Districts in Area under Soybean in the State: TE 1983-84 and TE 2009- 3.10 34 10 Share of Major Districts in Soybean Production in the State: TE 1983-84 and TE 2009- 3.11 37 10 3.12 Average Area, Production, and Yield of Mustard in the State: 1951-52 to 2009-10 39 Share of Major Districts in Area under Mustard in the State: TE1983-84 and TE2009- 3.13 40 10 Share of Major Districts in Mustard Production in the State: TE1983-84 and TE2009- 3.14 42 10 3.15 Classification of districts according to growth in area of Soybean in M.P.