December 2, 2010

India's farm sector grows 3.8% in H1 2010-11

India's agriculture grew by 3.8% in the first six months of the current fiscal year, against a 1% growth from last year on the back of better Kharif crop output.

According to the GDP data released by the Central Statistical Organisation (CSO) on Tuesday (Nov 30), the country's farm sector grew by 2.5% and 4.4% each in the first two quarters of the current fiscal year, against 1.9% and 0.9%, respectively, in the same period last year.

"Apart from production of Kharif crops, the growth in 'agriculture, forestry and fishing' estimates of GDP in the second quarter are based on the anticipated production of fruits, vegetables and other crops, livestock products, forestry and fisheries, which show growth in the range of 3%-4%," the official release said.

In 2009-10 fiscal year, the agriculture sector recorded its lowest growth in five years, at 0.1%, due to widespread drought across the country. The sector had grown by 1.6% in the previous fiscal year.

The government has set a target of 4% farm growth per annum in the 11th Five Year Plan period (2007-12).

According to the first advance estimate released by the Agriculture Ministry, overall food grains output in the 2010-11 Kharif season is pegged higher at 114.63 million tonnes, as compared with 103.84 million tonnes in the year-ago period.

Rice output is estimated at 80.41 million tonnes in the current Kharif season, against 75.91 million tonnes in year-ago period. Similarly, pulses output is estimated to improve to 0.76 million tonnes from 0.46 million tonnes, while oilseeds production is seen also forecast at 17.27 million tonnes against 15.66 million tonnes.