Contribution of Primary Sector in Madhya Pradesh's Economy and chances of Success of startups

Dr. Ravindra Pastor, CEO, e-Fasal

The Madhya Pradesh government has recently published the Economic Survey Report of Madhya Pradesh. According to this report, the primary sector has grown significantly in Madhya Pradesh, thereby strengthening its position as the cornerstone of Madhya Pradesh's economy. The contribution of the primary sector has increased from 33.85 per cent in FY 2011-12 to 45.53 per cent in FY 2023-24 at current prices and from 33.85 per cent in FY 2011-12 to 35.82 per cent in FY 2023-24 (A) at constant prices, which reflects a strong agricultural base and commitment to rural development. The contribution of the primary sector to the Gross State Value Added (GSVA) of Madhya Pradesh at both current and constant prices for FY 2022-23 and 2023-24 reflects its important role in the economic structure of the state. At current prices, the share of the primary sector increased from 45.17 per cent in FY 2022-23 to 45.53 per cent in FY 2023-24. This growth is driven by the stable contribution of crops (32.29 per cent to 32.32 per cent) and livestock (7.51 per cent to 7.84 per cent), reflecting increased agricultural productivity and livestock development. Fisheries and aquaculture also grew from 0.50 per cent to 0.53 per cent, indicating a positive trend in this emerging sector. Mining and quarrying grew from 2.59 per cent to 2.67 per cent, reflecting the growing importance of this sector. When analysed at constant prices (2011-12 base year), the primary sector maintained a significant share, with the contribution reflecting strong real growth in specific sectors. The contribution of livestock increased from 6.02 per cent to 6.18 per cent, and fishing and aquaculture increased from 0.50 per cent to 0.54 per cent, reflecting real growth and resilience in these sectors. Mining and quarrying also increased from 2.18 per cent to 2.27 per cent, underlining the sector's potential for sustainable growth. These positive trends highlight the important role of the primary sector in driving Madhya Pradesh's economic growth, ensuring stability and providing a strong foundation for future progress.

Agriculture and Rural Development

Madhya Pradesh has registered a growth of 0.20 per cent in the production of major crops in FY 2023-24. The production of cereals registered a marginal decline of 1.91 per cent, while pulses grew by 42.62 per cent and oilseeds by 7.32 per cent. Horticulture crops also saw a boom, with spice production increasing from 52.62 lakh metric tonnes in 2022-23 to 53.59 lakh metric tonnes in 2023-24. Vegetable production increased from 236.41 lakh metric tonnes to 242.62 lakh metric tonnes and fruit production from 95.10 lakh metric tonnes to 95.54 lakh metric tonnes during the same period. Milk production in the state increased by 5.88% to 201.22 lakh tonnes in the year 2022-23, while egg production increased by 9.48% to about 31,850.38 lakh eggs and meat production increased by 9.37% to about 138.95 thousand tonnes. The contribution of crop sector GSVA to crop sector GSVA in the year 2023-24 increased by 9.10 per cent at current prices and 1.84 per cent at constant prices (2011-12), while the contribution of the livestock sector to GSVA increased by 13.86 per cent at current prices and 8.60 per cent at constant prices. The area under major crops increased from 30,048 thousand hectares in FY 2022-23 to 30,246 thousand hectares in FY 2023-24, while total production increased from 72,228 thousand tonnes to 72,371 thousand tonnes. The area under paddy cultivation increased by 4.44%, maize by 6.08% and gram by 11.29%, while wheat cultivation declined by 5.84%. Pulses crops have witnessed significant growth, especially in the area under cultivation increased by 31.35%. There has been a significant increase in the area under oilseed crops like soybean and mustard. The area under oilseeds increased by 4.01 per cent mustard by 10.21 per cent and soybean cultivation also increased by 1.76 per cent. On the other hand, the area under sugarcane decreased by 8.93 per cent, while the area under cotton increased by 5.88 per cent. The Crop Diversification Incentive Scheme and the ‘One District One Product’ initiative have played a key role in promoting crop diversification. Ten districts cover major agricultural products like millet, tur, gram and different types of rice. In the horticulture sector, there has been a marginal increase in the area and production of spices, with red chilli, garlic, coriander and ginger being the major spices. Production of vegetables, especially potatoes, onions and tomatoes, has also increased. The area under fruit cultivation remained stable, while production increased.

Madhya Pradesh continues to be a major player in dairy production, being the third largest producer in India. Efforts to increase dairy production have resulted in a steady increase. Egg and meat production has also seen a significant increase, with poultry farming being a major contributor to meat production. The state has implemented various livestock and poultry development schemes like the National Gokul Mission to improve breed quality and livestock productivity. Liquid nitrogen plants set up under the National Agriculture Development Scheme have enhanced artificial insemination efforts. The Public Distribution System has provided food grains to over 5 crore beneficiaries. The State has played an effective role in food distribution. Procurement of major food grains like rice, wheat, jowar and bajra ensures food security and supports farmers. Fish production has also been robust, with major water bodies contributing significantly. The State has surpassed the targets for fish seed production and overall fish production. Cooperatives and training programmes for fishermen are integral parts of this success. The Kisan Credit Card Scheme supports fishermen with zero-interest loans. Employment generation efforts have resulted in substantial employment generation, especially through man-day employment in the fisheries sector. The Savings-cum-Relief Scheme and the Pradhan Mantri Matsya Sampada Yojana provide financial support to fishermen during the off-season, ensuring economic stability.

The State has developed 41.10 lakh hectares of cultivable irrigated area and has succeeded in providing irrigation facilities in 37.66 lakh hectares through strategic development and implementation of various major, medium and minor irrigation projects. The state has set a target of developing 53 lakh hectares of cultivable irrigated area by the year 2027. Atal Bhujal Yojana has been implemented for water conservation and groundwater improvement in 9 blocks of 6 districts of the Bundelkhand region of the state. Work is in progress on the ambitious Ken-Betwa Link Project, which will generate 103 MW hydropower and provide drinking water to about 41 lakh population, as well as provide an irrigation facility in Bundelkhand (4.51 lakh hectares) and Betwa basin (2.06 lakh hectares).

Crop Production

Reputed as one of the major granaries of the country, Madhya Pradesh stands proudly as an agricultural state, where fertile soil and diverse climatic zones foster a rich agricultural landscape, leading to the cultivation of a wide variety of crops. Major crops include wheat, rice, soybean, pulses, oilseeds, cotton and sugarcane. The climate and soil conditions of the state are conducive to soybean cultivation, hence it has emerged as one of the major soybean-producing regions. Horticulture of fruits such as oranges, guavas and bananas has gained importance. As per the second advance estimate, the area under major crops increased from 30,048 thousand hectares in 2022-23 to 30,246 thousand hectares in 2023-24, showing an increase of 0.66%. Meanwhile, the total production of these crops increased from 72,228 thousand tonnes to 72,371 thousand tonnes (second advance estimate). Analyzing the category-wise crop production shows that the productivity of cereals decreased by 1.91%, while the production of pulses showed an increase and oilseeds witnessed a significant increase of 7.32%. Overall, crop production in 2023-24 witnessed an increase of 0.20% over the previous year, indicating a positive trend in agricultural production during this period.

Cereal Crops

Rice

The area under paddy witnessed an increase of 4.44 per cent in 2023-24 as compared to 2022-23, the area increased from 3,848.00 thousand hectares in 2022-23 to 4,019.00 thousand hectares in 2023-24. Due to the increase in area under paddy, the production also witnessed an increase of 4.41 per cent in 2023-24 as compared to 2022-23, the production increased from 13,126.00 thousand tonnes in 2022-23 to 13,705.00 thousand tonnes in 2023-24.

Maize

The area under maize cultivation increased by 6.08 per cent from 1,448.00 thousand hectares to 1,536.00 thousand hectares in 2023-24 as compared to 2022-23. This increase in area led to an increase in production by 6.75 per cent from 4,621.00 thousand tonnes in 2022-23 to 4,933.00 thousand tonnes in 2023-24. Wheat: The area dedicated to wheat cultivation witnessed a decline of 5.84 per cent from 9,781.00 thousand hectares to 9,210.00 thousand hectares in 2023-24 as compared to 2022-23. As a result, wheat production also declined by 5.73 per cent, from 34,977.00 thousand tonnes in 2022-23 to 32,972.00 thousand tonnes in 2023-24.

Pulses

Shifting its focus on pulses, Madhya Pradesh is engaged in the cultivation and production of various pulse crops, which include tur, gram, urad, moong, lentil and peas. The total area under pulse crops in 2023-24 witnessed a significant increase of 31.35 per cent as compared to 2022-23. Additionally, the production of pulse crops has also increased.

Tur

The area under cultivation of tur in 2023-24 witnessed a decline of 6.63 per cent as compared to 2022-23, from 166.00 thousand hectares to 155.00 thousand hectares. However, despite the reduction in cultivated area, the production witnessed a significant increase of 17.81 per cent from 146.00 thousand metric tons in 2022-23 to 172.00 thousand metric tons in 2023-24.

Gram

The area under cultivation of gram during the period 2023-24 has increased by 11.29% as compared to 2022-23, from 2,108,000 hectares to 2,346,000 hectares. This increased area under cultivation has also resulted in an increase in the production of gram by 11.39%, from 3,563,000 metric tons in 2022-23 to 3,969,000 metric tons in 2023-24. Urad, Moong, Masoor and Peas: The area under cultivation of Urad during the period 2023-24 has decreased by 34.22% as compared to 2022-23, leading to a decrease in production by 32.71%. In contrast, the area dedicated to moong cultivation increased by 9.90%, while production increased by 10.55%. Similarly, the area under lentil cultivation increased by 5.80%, resulting in an increase in production of 5.98%. Notably, the area under pea cultivation expanded by a remarkable 111.36%, while production increased by an impressive 112.95%.

This data reflects a shift in agricultural trends, with some crops witnessing substantial growth in both area and yield, while other crops like urad bean witnessed a significant decline. The expansion in cultivation of moong and lentils indicates a positive trend for these pulses, possibly due to favourable growing conditions or market demand. The dramatic increase in pea cultivation and production suggests a strong focus on this crop, which could be due to its high market value or its compatibility with current agricultural practices. As per the second advance estimate, the total area under pulse crops (including others) increased by 31.35% in 2023-24 as compared to 2022-23. The actual area coverage was 5,225 thousand hectares in 2020-21, which decreased to 4,413 thousand hectares in 2021-22. It further decreased to 4,347 thousand hectares in 2022-23, but then increased significantly to 5,710 thousand hectares in 2023-24. This substantial increase reflects a significant expansion in the area devoted to pulse crops in 2023-24. As per the second advance estimate, the production of major pulse crops is expected to increase in 2023-24 as compared to 2022-23.

Oilseed

In the category of oilseed crops, the total area covered under sesame cultivation is expected to increase by 4.01% in the year 2023-24 as compared to the year 2022-23. The total area under sesame cultivation was 8,013.00 thousand hectares in the year 2022-23, which increased to 8,334.00 thousand hectares in the year 2023-24. Further, the total sesame crop production is estimated to increase by 7.32% in the year 2023-24 as compared to the previous year, wherein the production will increase from 9,297.00 thousand metric tons in the year 2022-23 to 9,978.00 thousand metric tons in the year 2023-24.

Mustard (Rai-Sarson)

The area dedicated to mustard cultivation is expected to increase by an estimated 10.21% in 2023-24 as compared to the previous year, wherein the cultivated area will increase from 1,273.00 thousand hectares to 1,403.00 thousand hectares. This increase in cultivated area is expected to result in an increase of 10.66% in mustard production in the year 2023-24, from 1,960.00 thousand metric tons to 2,169.00 thousand metric tons. This increase reflects a positive trend in mustard cultivation, possibly influenced by favourable agronomic conditions or increased market demand for mustard products. Soybean- The area under cultivation of soybeans is expected to increase by 1.76% in 2023-24 as compared to 2022-23, from 5,974.00 thousand hectares to 6,079.00 thousand hectares. With the expansion of the soybean cultivated area, production is estimated to increase. Production is expected to increase by 5.42% in 2023-24 as compared to 2022-23, with production increasing from 6,332.00 thousand metric tons to 6,675.00 thousand metric tons.

Commercial Crops

The primary commercial crops of the region include cotton and sugarcane. Sugarcane: Sugarcane cultivation is expected to decrease by 8.93% in 2023-24 as compared to 2022-23, the area under cultivation will decrease from 112.00 thousand hectares to 102.00 thousand hectares. Due to the decrease in the sugarcane area, production is also expected to decrease. Production is expected to decrease by 6.38% in 2023-24 as compared to 2022-23, production will decrease from 784.00 thousand tonnes to 734.00 thousand tonnes.

Cotton

Cotton cultivation is expected to increase by 5.88% in 2023-24 as compared to 2022-23, the area under cultivation will increase from 595.00 thousand hectares to 630.00 thousand hectares. With the increase in area under cotton, production is estimated to increase by 3.03% in 2023-24 as compared to 2022-23, production will increase from 890.00 thousand metric tons to 917.00 thousand metric tons.

Agricultural Development Schemes

Many central schemes are implemented by the Directorate of Farmers Welfare and Agricultural Development for the welfare of farmers in the state. These schemes include National Agricultural Development Scheme, Food and Nutrition Security, National Edible Oil Mission, Soil Health and Fertility, Traditional Agriculture Development Scheme, Pradhan Mantri Krishi Sinchai Yojana and ATMA. Apart from this, under the state scheme, M.P. State Millet Mission, Agricultural Diversification Scheme for Demand Based Agriculture, One District One Product Operation Scheme, Formation and Promotion of Farmer Producer Organizations and Prime Minister Crop Insurance Scheme are mainly operated.

BT Cotton

Commercial cultivation of BT Cotton started in Madhya Pradesh in the year 2002-2003 after the approval and recommendations of the Ministry of Environment and Forests through GEAC.

Distribution of Chemical Fertilizers

2023-2024 (Kharif) Nitrogen 19.44, Phosphate 10.13, Potassium 0.81, N+P+K 30.37 lakh metric tonnes of fertilizers were made available.

Plant Protection

A plant protection program is being implemented to protect crops from damage caused by diseases and pests. This program mainly includes crop protection, seed treatment, rodent control and locust eradication.

Horticulture

Madhya Pradesh is one of the major food grain-producing areas of India, but there has been an increase in the cultivation of horticultural crops as cash crops. Several measures have been implemented for crop diversification and the adoption of new technology in the horticulture sector. One or more enterprises for the production of high-quality planting material, grading, sorting, packaging etc. for horticultural products centralized facilities will be provided. The Directorate of Horticulture is working on expanding the production and productivity of horticultural crops including medicinal and aromatic crops by implementing various schemes.

Production of major horticultural crops

The state has also made remarkable progress in the field of horticulture, especially the use of high technology in the production of fruits and vegetables. These include schemes like Protected Farming Incentive Scheme to promote off-season production of fruits and vegetables, mechanization in horticulture, post-harvest management, training and excursion programs to make officers/employees and farmers aware of the latest techniques of horticulture, etc. The major fruits of Madhya Pradesh include orange, guava, mango, banana orange, etc.

Production of major spices

The total area and production of spices in the year 2022-23 was 8.71 lakh hectares and 52.62 lakh metric tonnes respectively, while in the year 2023-24 it increased to 8.75 lakh hectares and 53.59 lakh metric tonnes respectively. The major spices produced in Madhya Pradesh are red chilli, garlic, coriander and ginger. The average production of red chilli in the last 5 years was 2.76 lakh metric tonnes. Similarly, the average production of ginger and garlic was 5.15 and 20.23 lakh metric tonnes respectively.

Production of major vegetables

The total area and production of vegetables in the year 2022-23 was 11.88 lakh hectares and 236.41 metric tonnes respectively and in the year 2023-24 the area increased to 12.19 lakh hectares and production increased to 242.62 metric tonnes.

The major vegetables produced in Madhya Pradesh are potato, onion and tomato. The average production of potatoes, onions and tomatoes in the last 5 years is 38.15, 50.04 and 31.50 lakh metric tonnes respectively. Production of Major Fruits The area under fruit cultivation in the year 2022-23 was 4.50 lakh hectares and 95.10 lakh metric tons respectively and in the year 2023-24, it was 4.53 lakh hectares and 95.54 lakh metric tons. It was observed that the major fruits produced in Madhya Pradesh are banana, mango and orange. The average production of bananas, mango and oranges in the last 5 years is 21.69, 8.39 lakh and 21.96 lakh metric tons respectively.

Area and Production of Major Flowers

Marigold production and area have consistently outperformed rose production in the last few years.

Area and Production of Major Medicinal Plants

In recent years, the largest area and production of major medicinal plants has been of Isabgol, followed by Ashwagandha and Safed Musli.

Madhya Pradesh State Agricultural Marketing

The Madhya Pradesh State Agricultural Marketing Board (Mandi Board) is a three-tier body, consisting of a Headquarters, 7 Regional Offices, 13 Technical Offices and 259 Agricultural Produce Market Committees (APMCs). Total Market Arrivals (April 2023 to March 2024)- Total arrivals in the State Mandis during the period April 2023 to March 2024 were recorded at 437.41 lakh metric tonnes, which is 31.90 lakh metric tonnes (or 7.87%) higher than the total arrivals of 405.51 lakh metric tonnes recorded during the period April 2022 to March 2023.

Agricultural Exports

To promote agricultural exports from the State, the Madhya Pradesh State Agricultural Marketing Board has been designated as the nodal agency for exports by the Government of Madhya Pradesh.

In the financial year 2022-23, the state government implemented the “Wheat Export” Mandi Fee Reimbursement Scheme exclusively for the financial year 2022-23 to encourage wheat exports from the state. As a result of this ambitious scheme, a large amount of wheat was exported. As a result, in the financial year 2022-23, Madhya Pradesh exported more than 2.1 million metric tons of wheat, accounting for 45% of India's total exports of 4.7 million metric tons, securing the first position in the country.

In the financial year 2022-23, two agricultural products of the state Rewa Sundarja Mango and Sehore Sharbati Wheat were awarded GI tag by Madhya Pradesh State Agricultural Marketing Board in coordination with NABARD. The state government implemented the “Wheat Export Mandi Fee Reimbursement Scheme” exclusively for the financial year 2022-23 to promote wheat exports from the state. However, in the financial year 2023-24, the government did not implement any scheme to promote the export of wheat or other agricultural products. Additionally, the Government of India banned the export of wheat from May 13, 2022, and the export of non-basmati white rice from July 20, 2023, to boost domestic supply. As a result, the total volume of agricultural exports from the state is witnessing a decrease in the financial year 2023-24 as compared to the financial year 2022-23.

According to the information received from the DGCIS portal, during the period from 1 April 2023 to 31 March 2024, Madhya Pradesh exported 1,019,085.57 metric tonnes of agricultural produce worth Rs 9767.93 crore. Considering the potential of obtaining a GI tag for specific produce from Madhya Pradesh, a GI Cell has been set up at the JNKVV level in collaboration with the Mandi Board in the financial year 2023-24. In collaboration with JNKVV Jabalpur, applications for GI tags for six other agricultural produce items have been submitted to GI Registry, Chennai: Mahakoshal Kshatriya Rice, Sitahi Kutki, Baigani-Arhar, Nagdaman-Kutki, Balaghat-Chana and Seoni-Jirashankar Rice. In addition, applications have been submitted for Gadarwara Tuar Dal and Kumbhraj Coriander in collaboration with the Agriculture Department of Narsinghpur/Guna. Progress Report on Marketing of Organic Products in Madhya Pradesh State- Mandi Board One District One UThe objective of this scheme is to ensure better prices for selected agricultural products, facilitate marketing and ensure unique identification of region-specific products for farmers. For this purpose, separate sheds/places have been designated for the purchase and sale of these products in Agricultural Produce Market Committees (APMCs) as per the above objectives. In the current financial year, from 1 April 2023 to 31 March 2024, a total of 13.43 lakh metric tonnes of organic products have been traded through APMCs. The “National Agriculture Market” (e-NAM) scheme is an all-India electronic trading portal. The “National Agriculture Market” scheme of the Government of India was launched in Madhya Pradesh on 14 April 2016. 59 new mandis were added to the e-NAM scheme in the financial year 2023-24. In Madhya Pradesh, from April 1, 2023, to March 31, 2024, e-trading of 17.18 lakh metric tonnes of agricultural commodities was done on the e-NAM portal by 2,078 authorized traders, worth about Rs 6,157.29 crore. During this period, 785 farmers were registered on the e-NAM portal.

Agricultural Livelihoods

The objective of Madhya Pradesh State Rural Livelihood Mission is to ensure that every family has at least 2-3 livelihood options for the economic strength of these women groups. Several agricultural and non-agricultural livelihood programs have been started like the production of spices, vegetables, moringa, millet and other coarse grains through collective efforts. Coordination with departments and other entities and capacity building through livelihood collectives like RSETI, Farmer Producer Companies (FPCs) or producer groups of common producer individuals are some of the major programs. Currently, MPSRLM has promoted 130 FPCs. A total of 25.86 lakh families are supported by a variety of agriculture and livestock-based livelihood activities.

Development of Startup Eco-system

1264 startups of the state have received recognition from the Government of India till the year 2023. There has been a 126 per cent increase in startups in the state since the implementation of the Madhya Pradesh Startup Policy till the year 2023, 16 incubators were established in the state of Madhya Pradesh in the year 2023-24 to develop and support entrepreneurs and early-stage enterprises. The state has provided financial assistance of Rs 67.28 lakh in the year 2022-23 and Rs 60.02 lakh in the year 2023-24 under the MP Startup Policy and Implementation Plan. An amount of Rs 5.9 crore has been invested in the startups of Madhya Pradesh till 31 March 2024. In the central region, most of the startups are from the IT services and agriculture sector, followed by healthcare and life sciences. Here the possibility of success of startups in the agriculture sector is higher than in other sectors.