Agriculture

           Nearly 50% of the State's population depends upon agriculture. A unique feature of the State is the predominance of cash crops. Kerala is a major producer of coconut, rubber, pepper, cardamom, ginger, cocoa, cashew, arecanut, coffee and tea. Tree spices like nutmeg, cinnamon, cloves etc., are also cultivated. Rice and tapioca are important food crops. Coconut production was 5,167 million nuts in 2000 and 2001.

            The agriculture sector in the State recorded an average growth rate of 3.6% against the target of 2.5%. A review of the long term performance of the crop sector, over the last decade, shows that the total output from the sector has recorded, an average annual growth 2.5% . There was, of course, a large scale shift from high volume low value crops like tapioca and rice to low volume, high value crops like pepper and rubber. The crop wise analysis is given below.

Rice : Rice, which is the staple food of Kerala has experienced continuous decline in area over two decades. Total cultivating area of rice in 1999-2000 is 3,50,000 hectares. The average productivity of rice at its current level is 2,203 kg./ha. (National average is 1930 Kg./ha) . The total rice production in 1999-2000 was 7.71 lakh tonnes. (in 1991-2000 it was 7.27 lakh tonnes). Rice production touched its peak of around 14 lakhs tonnes in mid seventies. Even this was hardly sufficient to meet the state's requirements.

Coconut : Coconut occupies 40% of the total net cropped area of 8.99 lakhs ha. It provides livelihood for over 3.5 million families. The productivity is 5747 nuts/ha. in 1999-2000.

Pepper : The State enjoys a near monopoly in area and production of pepper, accounting for 97% in the country. Total cultivating area in 1999-2000 is 1,84,000 ha. Total production was 56.43 lakh tonnes. Productivity is 306 Kg./ha. currently.

Cashew : The share of Kerala in the area under cashew in the country is 12% in 1998-99. The State's share in all India production is 11%. In 1999-2000 the net cropped area of cashew was 8.63 lakh ha., production was 4.64 tonnes and productivity was 537 kg./ha.

Plantation Crops : Rubber, tea, coffee and cardamom together accounting for 28% of the net cropped area in the State and 45% of the area under these crops in the country. In 1999-2000 in the state they together occupied 6.35 lakh ha.

Rubber : Kerala accounts for 85% out of the area under rubber in the country of 5.58 lakh ha. Total area of rubber in the state is 4.73 lakh ha. and production 5.85 lakh tonnes (All India production 6.22 lakh tonnes) in 1999-2000. Total value of rubber produced in Kerala at current price level is 3000 crores. Productivity in 1999-2000 is 1211 kg./ha.

Coffee : About 25% of the country's coffee production and 21% of the total cultivating area is in Kerala (0.84 lakh ha. and 0.60 lakh tonnes in Kerala and 3.40 lakh ha. and 2.92 lakh tonnes in India).

Tea : Against the total area of 4.37 lakh ha. under tea (1999) in the country, Kerala accounts for only 0.37 lakh ha. (11%). In respect to production, Kerala could retain only 9% share of nation's productivity. About 84,000 people are working in the organized tea plantation sector in Kerala.

Cardamom : The productivity which was more or less stagnant around 50 kg./ha. in 1980's has improved to average 120 kg./ha. by 1999-2000. Now Kerala's share in the production at all India level has increased from 32% to 70%. The total area of production now (2000) is 40,867 ha.

Other crops : Besides these, seasonal/annual crops like sugarcane, ginger, turmeric, banana, tapioca, sesamum and groundnut are also cultivated largely in the State.

Horticulture : Though there is vegetable and fruit production in Kerala, the opportunity for raising a variety of fruits and vegetables by taking advantage of the varying climate and other favourable features remain largely untapped. Even though, the productivity and production is on the increasing trends, generally, various types of plantain, leafy vegetables and other horticultural products are cultivated in Kerala.

Agricultural Income : The agricultural income details from 1993 onwards is given below: Growth of Agricultural Income in Kerala

Growth of agricultural income in Kerala
SL.No	Year	Agricultural Income (Rs.in crore)	Rate of change over previous year (%)	Percentage contribution to State income
1	2	3	4	5
1	1993-94	6256	....	26.23
2	1994-95	6897	10.25	26.62
3	1995-96	6947	0.72	25.78
4	1996-97	7115	2.42	25.39
5	1997-98*	6777	4.75	23.67
6	1998-99*	6900	1.81	22.70
7	1999-00*	7158	3.74	22.03
8	2000-01**	7425	3.73	21.38
Source: Directorate of Economics and Statistics * provisional ** quick estimate

General comments:

Though the agricultural sector is maintaining a growth rate around 3% in the past two years it is facing a very difficult period as a result of the steep fall in prices of most of the farm commodities. Being the major cash crop producing state in the country, Kerala is perhaps the worst hit on account of the new agenda for trade liberalization adopted by the Government of India through its import policies as a part of globalization. It is estimated that about 6,645 crores rupees has been lost to the State due to the fall in price of major agricultural crops.

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