1

Chapter 2
A General Introduction to the Agrarian Economy of Andhra Pradesh
1 Introduction: Agriculture in the overall Economy
Andhra Pradesh is predominantly an agricultural economy, where agriculture and allied
activities contribute a major share-approximately 24 per cent (Rs 47683 crore at 1999-2000
prices)-in the gross state domestic product (GSDP) and about 62 per cent of the total work
force of the state directly depends on agriculture alone for their livelihood [Statistical
Abstract of Andhra Pradesh 2007]. The total geographical area of the state is about 274.40
lakh hectares of which the average net sown area for the period 2004-07 is 104.68 lakh
hectares (nearly 38 per cent of the total geographical area). The per capita availability of net
sown area comes to be about 0.14 hectare for the same period.
1.1 Diversification of the economy away from agriculture, particularly in terms of
income originating in agriculture.
Over the past three and a half decades, there have been significant changes in terms of
income originating in different sectors of the state. As is seen from Table 1, the agriculture
and livestock sector contributed approximately 48 per cent of the total GSDP during 197073, however, this share declined sharply to 35 per cent during 1987-90 and further to a
meager 15 per cent in 2004-07. The manufacturing sectors share in the GSDP increased with
a slow but steady pace over the years. In 1970-73 the share of the manufacturing sector
which was 13 per cent, increased to approximately 17 per cent during 1987-90 and further to
21 per cent during 2004-07. There has been a phenomenal growth in the share of the service
sector in total GSDP over the period; its share increased from 28 per cent in 1970-73 to 42
per cent in 1987-90 and further to 50 per cent in 2004-07. Thus, we can see that most of the
decline witnessed in the agriculture sector has been appropriated by the service sector.

2
Table 1
Share of Different sectors in GSDP at 1999-2000 prices (Rs. in lakhs)

1970-73
1654195
2019345

%
in total
GSDP
48.2584
58.9111

Agriculture & Live stock

Primary Sector
Secondary (or
manufacturing) Sector
447604 13.0581
Tertiary (or Service) Sector
960836 28.0308
GSDP
3427785
100.00
Source: Computed from State Domestic Product Back

1987-90
2536956
2948702

%
in total
GSDP
35.1674
40.875

1204160
3061091
7213953
Series (1960-61

2004-07
2897867
5524433

%
in total
GSDP
15.1324
28.8481

16.6921
3975700
20.7608
42.4329
9649967
50.3913
100.00 19150067
100.00
to 1998-99), DES, Hyderabad and

Statistical Abstract of Andhra Pradesh 2007

1.2 Occupational pattern in Andhra Pradesh Diversification much less marked in terms
of workers dependent on agriculture.
There has, however, been not much change in the occupational pattern of the state (Table 2).
This development gains significance particularly in the case of agriculture, where the share in
GSDP has been on a drastic decline. The percentage of total workers engaged in agriculture
has shown only a marginal decline over the years. As observed from Table 2, around 70 per
cent of the total workforce in Andhra Pradesh engaged in agriculture during 1971; over the
years, however, there has been only a marginal decline in this share. In 2001, the share of
agricultural workers in total workforce of Andhra Pradesh remains slightly above 62 per cent.
An alarming development during these years is the increasing share of landless agricultural
labourers in total agricultural workforce alongside a declining share of cultivators in Andhra
Pradesh.

Table 2

3
Occupational Pattern in Andhra Pradesh (in lakhs)
Agriculture Sector
Non-agriculture Sector
% of agri.
% of
% of agri
Total
Total cultivator labourers
workers
NonAgri.
agri.
s in total
in total
in total
Houseagri.
Census Cultiv Laboure worke
agri.
agri.
work
hold
Other
worke
Years
ators
rs
rs
workers
workers
force-AP Industry workers
rs
1971
57.9
68.3
126.2
45.9
54.1
70.1
8.7
45.1
53.8
1981
74.1
83.3
157.3
47.1
52.9
64.2
10.6
77.1
87.7
1991
78.9
116.3
195.2
40.4
59.6
65.1
9.6
94.9
104.5
2001
78.6
138.3
216.9
36.2
63.8
62.2
16.4
115.6
132.0
Source: Statistical Abstract of Andhra Pradesh, DES, Hyderabad, various years

Total
workforce of
AP
180.1
245.1
299.6
348.9

1.3 Worker productivity in agriculture in relation to no-agricultural activities declining

sharply
As we have seen in the previous section, there has been a significant decline in the share of
agriculture in the total GSDP, while the share of workforce dependent on agriculture
remained almost unchanged. Clearly, this will have an impact on the per worker productivity
in agriculture in comparison with the non-agricultural workers. As is seen from Table 3, the
worker productivity in agriculture which is Rs. 0.13 lakh/worker in 1970-73 although
improves marginally to Rs. 0.16 lakhs/worker in 1987-90, declines back to Rs. 0.13
lakh/worker in 2004-07. Hence, the worker productivity in agriculture remained almost
stagnant over the period 1970-73 to 2004-07. In contrast, the non-agricultural sector worker
productivity witnesses a substantial improvement; from Rs. 0.26 lakh/worker in 1970-73 to
Rs. 0.49 lakh/worker in 1987-90 and further to Rs. 1.03 lakh/worker in 2004-07.
Table 3
Worker Productivity in Andhra Pradesh (output/worker)
1970-73
1987-90
2004-07
Agriculture & Live stock
0.13
0.16
0.13
Non-agricultural sector
0.26
0.49
1.03
Source: Statistical Abstract of Andhra Pradesh, DES, Hyderabad, various years

2 There have been rapid far reaching changes within the agricultural sector over this
period; changes that can be observed along very many dimensions.

4
2.1 Land Utilisation Pattern
Table 4 gives a comparative picture of the pattern of overall land utilisation in Andhra
Pradesh during three time periods; 1970-73, 1987-90 and 2004-07. Following are certain
significant changes discernible from the Table:
Between 1970-73 and 2004-07, substantial encroaching of waste land seems to have taken
place. Together the barren, un-culturable land, culturable waste and permanent pastures and
other grazing lands declined from 15.9 per cent of the total geographical area during 1970-73
to 14.3 per cent in 1987-90 and further to 12.6 per cent in 2004-07. In absolute terms, the
total decline in waste lands amounts to 9.11 lakh hectares (or almost a million hectare).

A part of this encroached land has gone into non-agricultural uses such as extension of
urban areas, augmented non-agricultural use of land (construction works etc.) in rural areas
etc. The land put to non-agricultural uses that consisted of 20.98 lakh hectares (or 7.7 per
cent of the total geographical area) in 1970-73, increased to 27.33 lakh hectares (or 10 per
cent of the total geographical area) during 1987-90 and further to 28.06 lakh hectares (or 10.2
per cent of the total area) during 2004-07.
Table 4
Land Utilisation Pattern in Andhra Pradesh (in lakh hectares)
1970% to
% to
1987Category
73
Total
Total
90
1 Total Geographical Area
274.4
100.0 100.0 274.40
2 Forests
62.91
23.0
22.5
59.71
3 Barren and Un-culturable Land
22.53
8.2
8.4
22.27
4 Culturable Waste
10.83
3.9
3.3
8.34
5 Permanent Pastures and other
Grazing Land
10.28
3.7
3.3
8.69
6 Land put to Non-agricultural Use
20.98
7.6
8.0
22.77
7 Current Fallows
21.13
7.7
7.4
27.33
8 Other Fallow Lands
9.3
3.4
5.1
14.05
9 Net Area Sown
113.6
41.4
41.1
108.60
10 Land under Miscellaneous Tree
Crops and Groves not included in
Net Area Sown
2.85
1.0
1.0
2.67
11 Area Sown more than Once
14.1
5.1
6.6
19.95
12 Gross Cropped Area
127.71
46.5
47.6
128.55
Source: Statistical Abstract of Andhra Pradesh, various years, DES, Hyderabad.

% to
total
100.0
21.8
8.1
3.0

200407
274.4
61.99
20.84
6.93

% to
Total
100.0
22.6
7.6
2.5

3.2
8.3
10.0
5.1
39.6

6.76
26.05
28.06
16.19
104.06

2.5
9.5
10.2
5.9
37.9

0.9
7.3
46.9

2.92
24.91
128.97

1.1
9.1
47

5
A part of the waste land is also brought under cultivation. As seen from Table 4, the land
under cultivation (which includes net area sown, current and other fallows and land under
miscellaneous tree crops) has in fact increased by 4.35 lakh hectares over the period 1970-73
to 2004-07. We also observe significant changes within this cultivated area. Most
importantly, fallowing has increased in Andhra Pradesh agriculture over the years; fallow
lands as a whole have increased from 30.43 lakh hectares (or 11.1 per cent of the total
geographical area) to 44.25 lakh hectares (or 16.1 per cent of the total geographical area)
during the period under consideration. In percentage terms, the magnitude of increase in
fallowing is particularly high in the case of other (or long term) fallows in comparison with
the current fallows (Table 4). At the same time, it is important to note that cropping intensity
has increased on some of the cultivated land over the time period. Cropping intensity,
measured in terms of the area sown more than once, has increased from 14.1 lakh hectares in
1970-73 to 19.95 lakh hectares in 1987-90 and again to 24.91 lakh hectares in 2004-07 (an
increase from 5.1 per cent to 9.1 per cent of the total geographical area over the entire
period). Despite considerable decline in the net area sown (from 41.4 per cent to 37.9 per
cent of the total geographical area over the time period), gross cropped area increases
marginally due to the significant improvement in the area sown more than once in the state.
2.2 Another important change that has occurred in operated area is in its distribution by size
classes
2.2 Operational Land Holdings increasing fragmentation of operational holdings in
Andhra Pradesh agriculture
The results of the World Agricultural Census over the years 1970-71 to 2000-01 reveal that
there has been a significant increase in the number of marginal holdings in Andhra Pradesh
agriculture (Table 5). The number of marginal holdings increased from 24.91 lakhs in 197071 to 70.23 lakhs in 2000-01. In percentage terms these amount to an increase from 46 per
cent to 61 per cent of the total number of operational holdings over the years. In relation to
the large number of holdings, the area operated by the marginal farmers amounts to mere
10.86 lakh hectares (or 8 per cent of the total operational area) in 1970-71 and although
improves marginally, remains low at 31 lakh hectares (or 22 per cent of the total area
operated) in 2000-01. Apart from the marginal holders, the number of holdings by the small

6
farmers also shows an increase in percentage terms-i.e. from 20 per cent in 1970-71 to 22 per
cent of the total number of holdings in 2000-01. Together, the marginal and small farmers
hold almost 83 per cent of the total number of holdings in Andhra Pradesh in 2000-01; while
the area operated by the farmers under these categories amount to a mere 47 per cent of the
total operational area in the same year. This clearly tells us the story of an increasing
fragmentation of operational holdings in Andhra Pradesh agriculture over the years.
Table 5
Number of Operational Holdings and Area Operated under Different Size Classes in Andhra Pradesh as
per the World Agricultural Census 1970-71 and 2000-01
Category of Holdings

No. of Operational
Holdings (in lakhs)
1970-71
2000-01

Marginal (below 1.00 hectare)

24.91
70.23
(46.0)
(60.9)
Small (1.00 2.00 hectares)
10.65
25.18
(19.6)
(21.8)
Semi Medium (2.00 4.00 hectares)
9.42
14.23
(17.4)
(12.3)
Medium (4.00 10.00 hectares)
6.89
5.01
(12.7)
(4.4)
Large (above 10.00 hectares)
2.34
0.66
(4.3)
(0.6)
All sizes
54.21
115.31
(100.0)
(100.0)
Notes: Figures given in parentheses are percentages to all sizes category.

Area Operated
(in lakh hectares)
1970-71
2000-01
10.86
(8.0)
15.33
(11.3)
26.07
(19.2)
41.86
(30.8)
41.74
(30.7)
135.86
(100.0)

Source: www.fao.org

Figure 1: Number of Operational Holdings in Andhra Pradesh as per

the World Agricultural Census 1970-71 and 2000-01 (in lakhs)

31.04
(21.6)
35.65
(24.8)
37.95
(26.4)
28.55
(19.8)
10.80
(7.5)
143.99
(100.0)

Source: www.fao.org

Figure 2: Area Operated in Andhra Pradesh as per

the World Agricultural Census 2000-01 (in lakh hectares)

Source: www.fao.org (Data base of the Food and Agriculture Organisation-FAO)

In contrast with the small and marginal farmers, the number of holdings with semi-medium,
medium and large farmers have registered significant decline over the period. In percentage
terms, the number of holdings with semi-medium farmers declined from 17 per cent in 197071 to 12 per cent in 2000-01. While the number of holdings with medium farmers decreased
from 13 per cent in 1970-71 to 4 per cent in 2000-01, that with large farmers declined from 4
per cent to a megre 0.6 per cent during the same period (Table 5 and Figure 1)

Another important observation that derives from Table 5 as well as Figure 2 is a significant
decline in the area operated by the medium and large farmers. Out of the total operational
holding of 135.86 lakh hectares, the medium and large farmers together account for 83.60
lakh hectares (62 per cent) in 1970-71. The operational area under these categories have
declined to 39.35 lakh hectares (or 27 per cent of the total area operated which is 143.99 lakh
hectares) in 2000-01. The decline in area operated is more pronounced in the case of large
farmers.
Results of the various NSS rounds also give us similar trends in the operational holdings of
Andhra Pradesh (see Table 6, Figures 3 and 4)
Table 6
Changes in Percentage Distribution of the Number of Operational Holdings and Area Operated by Size
Categories of Operational Holdings during various NSS Rounds in Rural Andhra Pradesh
Category of Holdings

Marginal (1.000 hectare or less)

Small (1.001 2.000 ha.)
Semi Medium (2.001 4.000 ha.)
Medium (4.001 10.000 ha.)
Large (larger than 10.000 ha.)
All sizes
Note: * Kharif season estimates.

1970-71

1981-82

1991-92

2002-03

(26th)
No.of Area
holdi Oper
ngs
ated
47.3
9.3
19.1
11.7
18.2
21.9
11.9
31.3
3.5
25.8
100.0 100.0

(37th)
No.of Area
holdi Oper
ngs
ated
48.6
10.3
22.1
15.4
15.5
21.1
10.8
30.2
2.9
23.1
100.0 100.0

(48th)
No.of Area
holdi Oper
ngs
ated
59.3
17.5
21.4
23.3
13.2
26.2
5.4
23.5
0.8
9.4
100.0 100.0

(59th)
No.of Area
holdi Oper
ngs
ated
60.7
18.6
20.7
21.1
12.0
22.8
5.5
22.1
1.1
15.5
100.0 100.0

Source: NSSO (2006), Some Aspects of Operational Land Holdings in India, 2002-03, NSS 59th Round
(JanuaryDecember 2003), Report No. 492(59/18.1/3).

The percentage distribution of the number of operational holdings and area operated by size
categories of operational holdings in total Andhra Pradesh during various NSS rounds reveal
that there has been an increasing fragmentation of operational holdings over the period 197071 to 2002-03 (Table 6, Figures 3 & 4). The percentage share of marginal holdings increased
consistently over the time period. The increase has been particularly marked between 198182 and 1991-92, when the number of marginal holdings gone up from 48.8 per cent to 59.3
per cent. The share of small holdings although increased significantly from 19.1 per cent in
1970-71 to 22.1 per cent in 1981-82, fell back to 21.4 per cent in 1991-92 and further to 20.7

9
per cent during 2002-03. The combined share of area operated by small and medium farmers
has notably increased from 21 per cent in 1970-71 to 39.7 per cent in 2002-03. Most of this
change has occurred between the period 1981-82 and 1991-92, when the share of operational
area increased from 25.7 per cent to 40.8 per cent.
In contrast to the small and marginal holdings, we observe a consistent decline in the share of
semi-medium, medium and large holdings in Andhra Pradesh (Table 6, Figures 3 & 4). The
number of semi-medium and medium holdings declined from 30.1 per cent in 1970-71 to
17.5 per cent in 2002-03. The decline in the share of medium holdings, however, is much
sharper than the semi-medium holdings over this period. In the case of area operated, the
share semi-medium holdings have actually increased over the years, from 21.9 per cent in
1970-71 to 26.2 per cent in 1991-92, however, dropped to 22.8 per cent in 2002-03. As
against the trend in semi-medium holdings, the share of area under medium holdings
depicted a consistent decline through out from 31.3 per cent in 1970-71 to 30.2 per cent in
1981-82, and further to 23.5 per cent in 1991-92 and 22.1 per cent in 2002-03.
The large holdings also registered a cutback in the percentage share of the number of
holdings, from 3.5 per cent in 1970-71 to 2.9 per cent in 1981-82 and further to 0.8 per cent
in 1991-92, however there was some consolidation of the large holdings in the 1990s,
reflected in a marginal increase to 1.1 per cent in 2002-03 (Table 6, Figures 3 & 4). In lines
with the decline in the number of operational holdings, the area under large holdings also
decreased from 25.8 per cent in 1970-71 to 23.1 per cent in 1981-82, and further declined
substantially to 9.4 per cent in 1991-92, however increased to 15.5 per cent in 2002-03.
To sum up, overall there is an increasing trend of fragmentation of operational holdings in
Andhra Pradesh agriculture, with significant growth in the number of holdings as well as
total area operated by the small and marginal holdings, and decline in the share of medium
and large holdings. It is important to note that these changes have occurred largely almost
solely in the 1980s. There was hardly any change in the 1970s and in the 1990s there was
some reversal in the trends if anything: that there was some consolidation of the large
holdings in this decade.
Figure 3: Percentage Distribution of the Number of Operational Holdings by Size Categories of
Operational Holdings during various NSS Rounds in Rural Andhra Pradesh

10

Source: NSSO (2006), Some Aspects of Operational Land Holdings in India, 2002-03, NSS 59th
Round (JanuaryDecember 2003), Report No. 492(59/18.1/3).
Figure 4: Percentage Distribution of Area Operated by Size Categories of Operational Holdings during
various NSS Rounds in Rural Andhra Pradesh

Source: NSSO (2006), Some Aspects of Operational Land Holdings in India, 2002-03, NSS 59th
Round (JanuaryDecember 2003), Report No. 492(59/18.1/3).

2.3 Significant Changes in cropping pattern in the state during this period
The literature speaks of an increasing trend of crop diversification in Andhra Pradesh
agriculture since mid-1980s [Pochanna (2002), Vakulabharanam (2004), Reddy DN (2006)
and Human Development Report 2007, Andhra Pradesh]. To bring out the extent of crop
diversification, in the present study we have used the Herphindahl index. 1 The Herphindahl
index is defined as:
n

HI =

pi2

i 1

where,
1

Manoranjan Pattanayak and, Bibhu Prasad Nayak (2003), Crop Diversification in Orissa: A Spatio-Temporal
Analysis (2003). International Economics Division, SIS, JNU Working Paper Series, July. Available at SSRN:
http://ssrn.com/abstract=671585

11
Ai
th

pi ( or the proportion of area under i crop) =

i 1

Ai = Area under ith crop

n

= Total cropped area

i 1

The value of the HI-index varies between zero and one. It is one in the case of perfect
specialisation and zero in the case of perfect diversification. The selected crops for compiling
the index for Andhra Pradesh agriculture are: rice, maize, coarse cereals excluding maize,
total pulses, cotton, groundnut, other oilseeds and other non-foodgrains over three different
time periods 1970-73, 1987-90 and 2004-07. The values of the index are presented in
Table 7.
Table 7
Crop Diversification Index in AP Agriculture
Regions
1970-73
1987-90
2004-07
Costal Andhra
0.31
0.30
0.36
Rayalaseema
0.29
0.34
0.29
Telangana
0.23
0.19
0.25
Andhra Pradesh
0.21
0.18
0.17
Source: Computed from Season and Crop Report of Andhra Pradesh,
DES, Hyderabad
Regions
Costal
Andhra
Rayalaseema
Telangana
Andhra
Pradesh

1970-73

1987-90

2004-07

0.31
0.29
0.23

0.30
0.34
0.19

0.36
0.29
0.25

0.21

0.18

0.16

As evident from the Table, for the slate as a whole, the value of the HI-index is less than 0.25
for the all the three periods, and more importantly, these values are steadily declining over
the years. This is indicative of a highly and increasingly diversified nature of Andhra
Pradesh agriculture. Among the three regions of A.P., Telangana shows the highest degree of
diversification (or alternatively, the lowest value for HI-index) in all the three periods
followed by Rayalaseema and Costal Andhra. In comparison with the other two regions,
Costal Andhra is relatively more specialised with the index value greater than 0.30 in all the
three periods [N.B: I think it is better to mention these regional figures at the end of the
chapter or even in Chapter 3, after discussing the general trends].

12

Apart from the changes in land utilisation pattern, there have been considerable changes in
the cropping pattern of Andhra Pradesh agriculture during the period 1970-71 to 2006-07.
Broadly these changes are marked in a significant shift in area under foodgrains to nonfoodgrains crops. As is seen from Table 7, area under total foodgrains reduced from 89.94
lakh hectares (or 70.4 per cent of the GCA) in 1970-73 to 78.81 lakh hectares (or 61.3 per
cent of the GCA) in 1987-90 and further to 69.03 lakh hectares (or 53.5 per cent of the GCA)
in 2004-07. In contrast to the foodgrains, area under non-foodgrains (particularly, groundnut
and cotton) has significantly increased from 29.6 per cent of the GCA in 1970-73 to 38.7 per
cent in 1987-90 and further to 46.5 per cent of the GCA in 2004-07.
Apart from the shift in area under foodgrains to non-foodgrains, there were also significant
changes within the foodgrains basket. Notably, area under cereals as a whole decreased while
that under pulses increased, but obviously not enough increase to offset the decline under
cereals. Cereals as a group declined consistently from 59.6 per cent of the GCA in 1970-73 to
49.5 per cent in 1987-90 and again to 39.1 per cent of the GCA in 2004-07. among the cereal
basket, the drastic decline in the area under coarse cereals (excluding maize) is particularly
noteworthy; declining from a significant 41.8 lakh hectares (or 32.7 per cent of the GCA) in
1970-73 to a meager 6.5 lakh hectares (or 5.1 per cent of the GCA) in 2004-07.
Within cereals, however, the area under rice and maize has increased over the years. Acreage
under rice increased 31.63 lakh hectares in 1970-73 to 39.4 lakh hectares in 1987-90, but,
declined to 36.82 lakh hectares in 2004-07. The maize acreage has, however, shown a
consistent increase through out the period, and the increase has been significantly high since
1987-90. The area under maize cultivation went up from 2.71 lakh hectares in 1970-73 to 3
lakh hectares in 1987-90 and further increased to 7.13 lakh hectares in 2004-07.
Although, the area under pulses has shown a consistent increase from 13.79 lakh hectares in
1970-73 to 18.56 lakh hectares in 2004-07, the increase was not sufficient enough to outstrip
the fall in area under cereals. Consequently, the area under total foodgrains has gone down
over the years.
Table 8

13
Cropping Pattern in Andhra Pradesh for Selected Years (in lakh hectares)
1970-73
1987-90
2004-07
31.63
39.40
36.82
Rice
(24.76)
(30.65)
(28.54)
2.71
3.00
7.13
Maize
(2.12)
(2.33)
(5.53)
41.80
21.17
6.51
Coarse Cereals excluding Maize
(32.73)
(16.47)
(5.05)
76.14
63.57
50.46
Total Cereals
(59.61)
(49.46)
(39.13)
13.79
15.23
18.56
Total Pulses
(10.79)
(11.85)
(14.39)
89.94
78.81
69.03
Total Foodgrains
(70.42)
(61.31)
(53.52)
3.16
6.17
10.61
Cotton
(2.47)
(4.80)
(8.23)
15.44
21.68
16.84
Groundnut
(12.00)
(16.87)
(16.84)
6.92
10.11
10.14
Other Oilseeds
(5.42)
(7.87)
(7.86)
22.36
31.80
26.97
Total Oilseeds
(17.51)
(24.74)
(20.91)
12.25
11.76
22.36
Other non-foodgrains
(9.59)
(9.15)
(17.34)
37.77
49.73
59.94
Total non-foodgrains
(29.57)
(38.69)
(46.48)
127.71
128.55
128.97
Gross Cropped Area
(100.00)
(100.00)
(100.00)
Note: Figures in parentheses are percentage share of crops in the gross cropped area
Source: Computed from Season and Crop Report of Andhra Pradesh, DES, Hyderabad.

2.4 Aspects of Technological Changes in Andhra Pradesh Agriculture

There were significant developments at the technological front in Andhra Pradesh agriculture
during the period 1970-71 to 2006-07. Notable changes were: introduction of the seed
fertiliser (green revolution) technology, use of modern machinery and implements in
agriculture, development of irrigation infrastructure alongside a remarkable growth in public
investment in agriculture.
2.4.1 The Seed-Fertiliser Technology in Andhra Pradesh
The introduction of green revolution technology led to a rapid increase in the use of HYV
seeds, synthetic fertilizers and pesticides in the otherwise traditional agricultural practices of
the state. As is seen from Table 9, area covered under HYV seeds, especially that under rice,
has increased phenomenally over the decades. The increase has been marked in the 1970s.

14
Area under rice that was around 5.43 lakh hectares in 1970-71 made a significant
improvement to 27.60 lakh hectares by 1980-81; further the area has been increased to 36.38
lakh hectares in 1990-91 and to 37.02 lakh hectares in 2000-01. Similarly, area under HYV
seeds of maize registered a consistent increase through out the period; increasing from a
meager 0.33 lakh hectares to 1.16 lakh hectares in 1980-81, and further to 2.40 lakh hectares
in 1990-91 and to 4.46 lakh hectares in 2000-01. Area under bajra although showed signs of
improvement up to mid 1980s, declined since then. Similarly, the area under HYV varieties
of jowar increased from an insignificant 0.28 lakh hectares in 1970-71 to 3.31 lakh hectares
in 1980-81. The uptrend has been consistent up to 1995-96; however, there has been a
reversal of it in the current decade.
Alongside HYV seeds, the use of chemical fertilisers in Andhra Pradesh agriculture also
improved remarkably over the years (Table 10). The improvement has been marked
especially since the mid-1980s, when the total amount of fertilisers used in agriculture
increased from 647 thousand tonnes in 1985-86 to 1620 thousand tonnes in 1990-91. In
2005-06, the amount of total fertilisers used is 2553 thousand tonnes. However, it is a matter
of concern that the use of chemical fertilisers has been skewed in favour of nitrogen
fertilisers in Andhra Pradesh agriculture. This has got a negative implication on the
sustainability of soil nutrition in the long-run.

Table 9
HYV Programme in Andhra Pradesh-Area Covered (in Lakh Hectares)
Years
1970-71
1975-76
1980-81
1985-86

Rice
5.43

Jowar
0.28

Bajra
0.32

Maize
0.33

27.60
27.86

3.31
4.33

2.43
2.81

1.16
1.38

15
1990-91
36.38
4.76
1.87
2.40
1995-96
31.24
4.89
1.08
2.82
2000-01
37.02
3.82
0.70
4.46
Source: Fertiliser and Agricultural Statistics: southern Region, The Fertiliser Association of India,
Southern Region, Chennai, various years; and Season and Crop Report of Andhra Pradesh, DES, Hyderabad.
Table 10
Consumption of Chemical Fertilisers in Andhra Pradesh (in Thousand Tonnes)
Years
Nitrogen (N)
Phosphate (P)
Potassium(K)
1970-71
208.40
66.90
17.90
1975-76
255.76
53.56
17.54
1980-81
399.38
130.90
45.31
1985-86
412.89
173.88
60.70
1990-91
1068.13
424.14
127.48
1995-96
1192.34
420.79
142.08
2000-01
1361.79
603.46
209.32
2005-06
1522.09
690.09
340.36
Source: Season and Crop Report of Andhra Pradesh, DES, Hyderabad, various years.

Total
293.20
326.86
575.59
647.47
1619.75
1755.21
2174.57
2552.54

2.4.2 Use of Modern Implements in Agriculture/ Farm Mechanisation in Andhra Pradesh

Agriculture
During the three and a half decades since 1970-71, there has been a geometric progress in the
addition to agricultural machinery in Andhra Pradesh (Table 11). Work-animals got gradually
replaced by tractors. It also gave a boost to development of private water sources in the form
of bore wells and use of oil engines and electric pump sets. The modern agricultural
implements when associated with the new seed-fertiliser technology stimulated the increase
in productive forces in Andhra Pradesh agriculture on an unprecedented scale.
Table 11
Agricultural Machinery and Implements 1972 to 2003
Years

1972
1983
35,10,190
33,17,222
85,155
2,46,817
Ploughs
35,95,345
35,64,039
Water Pumps
1,16,542
2,50,649
1,45,393
4,37,583
for Irrigation
2,61,935
6,88,232
Tractors
7,040
21,450
Source: Statistical Abstract of Andhra Pradesh, DES, Hyderabad various years.
a) Wooden
b) Iron
c) Total
a) Operated by Oil Engines
b) Operated by Electric Motors
c) Total

2.4.3 Irrigation

1993
26,00,282
3,84,118
29,84,400
1,65,705
9,33,988
10,99,693
56,887

2003
18,74,352
7,72,509
26,46,861
1,51,337
13,16,219
14,67,556
92,384

16
The irrigation infrastructure helps in increasing the intensity of cropping and land use, and
provides intensives to farmers to use yield increasing inputs (HYV seeds, fertilizers, etc.) and
hence results in higher agricultural output. The seed-fertiliser technology when combined
with assured irrigation facilities it increases productivity in agriculture. Table 12 presents the
data on irrigated area as a percentage of net sown area in Andhra Pradesh in three points of
time- 1970-73, 1987-90 and 2004-07. As observed from the table, there has been a consistent
increase in the percentage of net irrigated area over the three time periods; it increased from
27.2 per cent in 1970-73 to 36.5 per cent in 1987-90 and further to 40.78 per cent in 2004-07.
Even then, a lot much is to be done (around 60 per cent of the net sown area is still
unirrigated) in terms of availing the irrigation facilities to the rain-fed/drought-prone regions
(especially the Telangana and Rayalaseema regions) of the state.
Table 12
Net Irrigated Area as a percentage of Net Sown Area
1970-73
1987-90
Andhra Pradesh
27.17
36.49
Source: Computed from Season and Crop Report of Andhra Pradesh, DES, Hyderabad.

2004-07
40.78

Table 13 disaggregates the growth in irrigation into major sources of irrigation 2 in AP. As
seen from the table, the composition of irrigation has undergone a significant change during
the period under analysis. The proportion of area under canal and tank irrigation has fallen
while the importance of well irrigation has gone up substantially [recent studies on AP
agriculture (Reddy R.2003, 2006; Vakulabharanam 2004) also reveal the same results].
Table 13
Irrigation as a percentage of Net Sown Area, according to sources of Irrigation in AP
Sources of Irrigation
1970-73
1987-90
Canals
13.27
16.43
Tanks
8.02
8.57
Tube Wells
0.67
2.22
Other Wells
4.33
8.01
Other Sources
0.90
1.34
All Sources
27.19
36.57
Source: Computed from Season and Crop Report of Andhra Pradesh, DES, Hyderabad.

2004-07
14.54
5.58
12.89
6.21
1.54
40.76

Two important observations are to be made here. First, the area under tank irrigation has
fallen by almost 30 per cent over the years. The tank irrigated area actually increased during
2

Historically the major sources of irrigation in the State are tanks, canals and wells in the same order of
importance [Reddy, R. (2006)].

17
the period between 1970-73 and 1987-90, however there has been a significant decline in
tank irrigated area since then. Major reasons for the decline in tank irrigation are decreasing
ground water levels in Rayalaseema and Telangana regions of AP and lack of proper
maintenance of the tanks [Reddy R. (2003)].
Second, the farmers are increasingly resorting to groundwater irrigation through tube wells,
bore wells and open wells. The well irrigated area constituted only 5 per cent of the net sown
area in 1970-73, but it accounted for approximately 20 per cent of the net sown area in 200407. The shift in cropping pattern towards cash crops like groundnut and cotton especially in
the dry zone areas of Rayalaseema and Telangana regions [Table 8] of the state explains the
increasing dependency on well irrigation. However, the matter of concern is that although
well irrigation is a more productive and remunerative option than the other two sources of
irrigation, its long term sustainability is critically linked with replenishing mechanisms like
tanks, watersheds, rainfall pattern etc. [Reddy R. (2006)]. In the absence of these
mechanisms (or declining trends in the developments of these), well irrigations become no
more viable and well failures become a common phenomenon. The recent years experiences
of well-failures in AP prove this to be true.
2.4.4 Public Investment in Agriculture
2.5 Conclusion
In sum, over the period 1970-71 to 2006-07, there have been rapid changes in the agrarian
sector of Andhra Pradesh in terms of land use patterns, diversification/commercialisation of
cultivation practices, irrigation and other technological changes etc. However, an important
point to be made here that while there are rapid changes in Andhra Pradesh agriculture, the
changes are not uniform over the entire period. This aspect will be taken up for a more
detailed study in the coming chapter
[N.B: I would like to incorporate the upcoming sections (sections 3&4) in this introductory
chapter itself; but Im not sure where to place it].
3 Broad Phases of Agricultural Development in Andhra Pradesh in the Literature

18

The process of agricultural development in Andhra Pradesh has been explained by

decomposing the sequence of development in to different phases by various scholars [see for
example, Subrahmanyam and Sekhar (2003), Pochanna (2004) and Chowdry (2006)].
Pochanna (2004) classifies the agricultural development process in the state broadly into six
phases. The first phase is concentrated around the settlement of land dispute and related
legislation in the state. The second phase covers the period of 1950s and mid-1960s where
the concentration is on development of agricultural infrastructure through massive doses of
public investment. Major river projects like Sri Ramsagar and Nagarjuna Sagar projects have
commenced during this period. The third phase, beginning from the mid-1960s to the end of
1970s, consists of consolidating the base and gains of the two earlier stages with the
introduction of a highly productive agricultural technology (the green revolution technology)
in the form of biological, chemical and mechanical inputs. This has resulted in an
unprecedented growth in agriculture, especially in foodgrains. The fourth period
commencing from the end of 1970s is mainly characterised by input intensification which in
turn resulted in a dramatic increase in productivity and extension of technology to non-food
crops. During the fifth period, i.e., from mid-1980s to early 1990s, there is diversification of
cropped area from foodgrains to non-foodgrains crops. The sixth phase of agricultural
development in Andhra Pradesh consists of the period of economic reforms beginning with
the early 1990s. In view of the economic reforms, the Government of Andhra Pradesh
initiated various policy measures to stimulate growth in the agricultural sector. Here, the
main focus is given for development of agriculture in rain-fed areas, concentrating on yields
of the crops, water-shed development, developing export markets, building infrastructure,
and investing in research and development (R & D) and extension services. However, the
performance of agricultural sector in the state during the reform/post-reform period is not
impressive.
Subrahmanyam and Sekhar (2003) provide a classification of different phases in the
agricultural development in Andhra Pradesh from the perspective of agricultural growth
performance. Basing their division of the different phases of agricultural development in
Andhra Pradesh around two events, namely, the green revolution and the economic reforms

19
(which began in early 1990s); they break up the growth performance of agricultural sector for
the long period of 44 years (1955-56 to 1998-99) into four sub-periods. The first sub-period
extending form 1955-66 to 1969-70 is the pre-green revolution period. The second and third
sub-periods covering 1970s and 1980s represent the first and second phases of green
revolution. The fourth sub-period of 1990s is the period of economic reforms. A summary of
their analysis is given below.
As per the authors analysis, Andhra Pradesh attained significant acceleration in agricultural
growth in the first phase of green revolution over the pre-green revolution period. The growth
rate of aggregate agricultural output in the state accelerated dramatically from 1.9 per cent in
the pre-green revolution period to 3.5 per cent per annum in the first phase of green
revolution period. A striking feature of agricultural development at the national level during
the first phase of green revolution is the wide variation in the rate of growth of output not
only in different regions but also among different crops. This inter-regional and inter-crop
imbalance arose because of the restriction of the high yielding varieties (HYV) seeds to only
rice and wheat in the initial years and the adoption of these varieties only in the well
endowed regions (especially the north western states like Punjab, Haryana and some parts of
Uttar Pradesh). However, the case with Andhra Pradesh is different. Here the high
acceleration witnessed during the first phase of green revolution is not merely due to rice, the
main beneficiary of green revolution in the initial phase, but due to the good performance of
all foodgrain crops. For example, while the rice output grew at 3.6 per cent, pulses attained
growth rate ranging between 3.2 to 8.1 per cent and millets attained growth rates ranging
between 1.8 to 7.1 per cent per annum. These high growth rates of unirrigated crops resulted
in a broad-based growth and reduction in regional inequalities in the state in contrast to the
experience at all-India level.
The second phase of green revolution maintained the growth rate attained in the first phase in
Andhra Pradesh. The achievement is not due to the continuation of growth in yield of various
crops attained in the previous period, but due to shift in the cropping pattern from low valued
coarse cereals to high valued crops like oilseeds, cotton and pulses. The share of millets in
gross cropped area declined from 27 per cent during 1970s to 20 per cent during 1980s, while
the share of oilseeds increased from 12 per cent to 21 per cent and that of cotton increased

20
from 3 to 4.5 per cent. Because of these shifts in the area from foodgrains to commercial
crops, the growth rate of cereal output decelerated from 3.6 per cent to 2.2 per cent while the
growth rate of non-foodgrain output accelerated from 2.8 to 5.0 per cent. In the state, regions
with dominance of rice and regions that have shifted form coarse cereals to groundnut or
cotton attained a high growth rate of aggregate output than other regions. Hence, the decade
of 1980s is not a period of accelerated and broad-based growth for Andhra Pradesh as in the
case of all-India [see for all-India growth trends in 1980s, Rao (1989), Sawant and Achuthan
(1995), Bhalla and Singh (1997)] . It is a period of shifts in cropping pattern from low valued
crops to high valued crops.
In the post-reform period the Andhra Pradesh state experienced a steep deceleration of
agricultural growth. The growth rate of aggregate output index declined from 3.4 to 2.3 per
cent. The growth rate of rice output declined from 3.3 to 1.6 per cent per annum. The growth
rate of groundnut output decelerated from 5.2 to 1.9 per cent and that of cotton declined from
8.1 to 7.4 per cent per annum. This decline in agricultural growth is mainly caused by
deceleration in the growth rates of yields of major crops in the state. For instance, the growth
rate of rice yield declined steeply from 3.1 to 1.3 per cent and that of cotton from 3.4 to 1.4
per cent. The growth rate of groundnut yield remained low at 0.7 per cent. Sugarcane also
experienced significant decline in the growth rate of yield from 3.2 to 1.0 per cent per
annum. It is important to note that output growth in the state in the 1990s decelerated steeply
despite significant growth in the gross cropped area at 0.6 per cent per cent per annum (this
increase is on account of increase in the cropping intensity from 117 to 123 per cent in the
state during the period). Expansion of area could not offset the decline in the growth rates of
yield.
4 The Agrarian Crisis in Andhra Pradesh
Although agriculture remains the backbone of the Andhra Pradesh economy, the
contemporary times witness disturbing trends in its agrarian sector with farmers suicides,
declining prices of several crops, widening disparities between agricultural and nonagricultural sectors and a drastic slowing down in the rate of agricultural growth as a whole.

21
As the Commission on Farmers Welfare, Government of Andhra Pradesh (2004) rightly
points out: Agriculture in Andhra Pradesh is in an advanced state of crisis
4.1 Declining Production and Productivity Scenario
The first indication of the crisis is given by the production indicators. Starting with early
1980s, there has been a continuous decline in the growth of agricultural output. The growth
rate of aggregate output declined from 3.4 per cent per annum in the 1980s to 2.3 per cent per
annum in the 1990s [Subrahmanyam and Sekhar (2003) p.1204]. This decline is even more
pronounced in the case of foodgrains. Table 14 presents the data on the compound growth
rate of production of major foodgrains output of Andhra Pradesh for the two periods 1970-71
to 1983-84 (Period I) and 1987-88 to 2006-07 (Period II).3

Table 14
Compound Growth Rates of Production of Major Foodgrains in Andhra Pradesh (Per cent)
Foodgrains

Period I

Period II

Overall Period

(1970-71 to 1983-84)
(1987-88 to 2006-07)
(1970-71 to 2006-07)
Rice
4.82
0.97
2.32
Jowar
1.31
-2.87
-2.91
Bajra
2.62
-4.81
-4.59
Maize
5.70
9.25
5.68
Ragi
0.18
-5.10
-3.92
Total Cereals
3.97
1.37
1.75
Total Foodgrains
3.90
1.54
1.86
Source: Computed from Season and Crop Report of Andhra Pradesh various years, DES, Hyderabad.

As seen from Table 14 except maize all other cereals register decline in their compound
annual growth rate. The compound growth of rice, which is the staple crop of the state,
declines from a healthy rate of 4.82 per cent per annum in Period I to an insignificant 0.97
per cent per annum during Period II. Growth rate of jowar output declines from 1.31 per cent
per annum in the first period to -2.87 per cent per annum in the second. The case with bajra
and ragi is not different. The growth rates of the three coarse cereals, namely, jowar, bajra
and ragi remain negative when we consider the overall period (i. e. from 1970-71 to 2006-07)
as well. In the cereal basket, it is only maize that shows an increase in the growth rate from
Period I (5.70 per cent per annum) to Period II (9.25 per cent per annum). Although pulses
3

The rationale behind the periodisation is discussed already in the methodology.

22
also show a positive trend in their growth rate (Table 15) it does not seem to be sufficient to
offset the magnitude of decline in the growth rate of cereals (which declines from 3.97 per
cent per annum in the first period to 1.37 per cent per annum in the second period). As a
result, the total foodgrains also decline from a growth rate of 3.90 per cent per annum in
Period I to 1.54 per cent per annum in Period II.
Table 15
Compound Growth Rate of Production of Total Pulses in Andhra Pradesh (Per cent)
Period I

Period II

Period III

(1970-71 to 1979-80)

(1980-81 to 1996-97)

(1998-99 to 2006-07)

Overall Period
(1970-71 to 2006-07))

Total Pulses
-1.31
3.36
6.17
3.66
Source: Computed from Season and Crop Report of Andhra Pradesh various years, DES, Hyderabad.

The decline in the growth rate of foodgrains is much sharper in per capita terms. Table 16
gives the per capita foodgrain production at three different points of time: 1970-73, 1981-84
and 2004-07.
Table 16
Per capita Production of Rice, Total Cereals and Total Foodgrains in Andhra Pradesh
(in Kilograms)
1970-73
1981-83
2004-07
Rice
105.43
151.32
145.11
Total Cereals
155.43
204.48
187.35
Total Foodgrains
164.08
214.56
203.70
Source: Computed from Statistical Abstract of Andhra Pradesh various years, DES, Hyderabad.
Table 17
Compound Growth rates of Per capita Production of Rice, Total Cereals and Total Foodgrains in Andhra
Pradesh (in Per cent)
Period I

Period II

Overall Period

(1970-71 to 1983-84)
(1987-88 to 2006-07)
(1970-71 to 2006-07)
Rice
2.69
-0.93
0.35
Total Cereals
2.09
-0.40
-0.14
Total Foodgrains
2.02
-0.23
-0.03
Source: Computed from Statistical Abstract of Andhra Pradesh various years, DES, Hyderabad

As seen from Table 16, the achievements in per capita terms are not as impressive as they
appear in aggregate terms. This is self evident from the fact that the average per capita
production of total foodgrains fluctuates between 160 Kgs to 215 Kgs during the 37 year

23
period under analysis. The per capita production in all the three variables (i.e. rice, cereals
and foodgrains) reveals a similar pattern i.e. it rises in the period 1981-84 but tends to fall
marginally during 2004-07. The picture becomes clearer when these variables are analysed in
terms of their compound growth rates (Table 17). After achieving an impressive growth of
about 2 per cent per annum in total foodgrains during period 1970-71 to 1983-84, it steeply
declines to -0.2 per cent per annum during 1987-88 to 2006-07. Such a sudden fall in the
growth rate is also observed in the case of rice and total cereals which decelerates from about
3 per cent to -1 per cent and 2 per cent to -0.4 per cent per annum respectively. This decline
in the growth rates acquires significance from the fact that it has a direct negative bearing on
the availability and intake of foodgrains by the people of the state.
As the recent studies point out, it is the decline in the yields of all the important crops that
has pulled down the growth rate of aggregate output in the state [Subrahmanyam and Sekhar
(2003), World Bank (2003) and Reddy D N (2006)]. Undertaking a decadal analysis of the
yield of major crops in Andhra Pradesh, Subrahmanyam and Sekhar (2003) observe that the
growth rate of rice yield declined steeply from 3.1 per cent per annum during 1980s to 1.3
per cent per annum during the 1990s. While the growth rate of cotton declined from 3.4 per
cent to 1.4 per cent, that of ground nut remained low at 0.7 per cent. Sugarcane also
experienced a significant decline in the growth rate of yield from 3.2 to 1.0 per cent per
annum during the same time period. Here, the authors identify that the steep deceleration in
the output growth in the 1990s is despite the significant growth in the gross cropped area at
0.6 per cent per annum. This indicates that the expansion of area could not offset the decline
in the growth rates of yield in the agrarian sector of the state.
A World Bank study (2003) compares the yield levels of the major crops in Andhra Pradesh
with that of domestic and international standards. The study reveals that APs agriculture is
considerably less productive. For instance, Egypt produces almost 3.3 times more rice per
hectare than AP. Kuwait produces 6 times more maize per hectare than AP. The yield of
groundnut in Israel is 7.6 times higher and the yield of tobacco in United Arab Emirates
(UAE) is 10 times higher than in AP. The study acknowledges that although a comparison of
yields between AP and the countries with the highest yields in the world appears
inappropriate considering the differences in agro-climatic conditions, it helps to benchmark

24
APs productivity from a global perspective and provides an indicative measure of the
enormity of growth potential that exists in its agriculture. The study further compares the
yield performance of AP agriculture with those of states within India. Even here, the yield
level of AP agriculture is not very impressive. For example, the yields in Tamil Nadu in crops
like rice, sugarcane, groundnut and oilseeds are 1.3, 1.4, 1.9, and 1.9 times higher
respectively compares to those of Andhra Pradesh. Tobacco and pulses in U.P, Onion in
Gujarat and cotton in Madhya Pradesh have yields that are 3.9, 1.8, 1.5, and 1.2 times higher
than corresponding yields in AP. The only crop where AP has the highest yield among Indian
states is maize. The study points out that in terms of overall yields of foodgrains, AP
continues to lag behind Punjab, Haryana, Tamil Nadu, West Bengal and even Kerala.
Reddy D N (2006) also undertakes a similar study of yield performance in Andhra Pradesh
agriculture in lines with the World Bank (2003) study. What concerns this study the most is
the slowdown in the yield levels of rice (since early 1990s) which is the single largest crop
accounting for about 37 per cent of gross cropped area and ranks first in 20 out of 22 districts
in the state, and contributes about 25 per cent of the state agricultural domestic product
(SDP).
4.2 Meagre Returns from Cultivation
The results of the National Sample Survey (NSS) 59th round (January-December 2003) on
Situation Assessment Survey of Farmers are quite revealing. The survey identifies that in
2002-03 the average returns from cultivation per hectare in Andhra Pradesh are Rs 5243 in
Kharif and Rs 7815 in Rabi (Table 18). From the total farmer households, 82 per cent with an
average size of 1.2 hectare in Kharif and 39 per cent with an average land size of 0.9 hectare
in Rabi engaged in cultivation. The paid out expenses as per cent of value of output is about
62 per cent in Kharif and 53 per cent in Rabi. Here, it is important to note that compared to
the national average, Andhra Pradesh agriculture has got relatively lower returns per hectare
but a greater share of expenses both during Kharif and Rabi seasons.
Table 18
Returns to Cultivation 2002-03
Andhra Pradesh
Farmer Households Cultivating (per cent)
81.7
GCA per Cultivating Households (Hectares)
1.2

All India
86.2
1.1

25
Kharif

Gross Returns per Hectare (Rs)

Expenses by Value of Output (per cent)

5243
62.3

6756
43.9

Farmer Households Cultivating (per cent )

39.1
62.3
GCA per Cultivating Households (Hectares)
0.9
0.9
Rabi
Gross Returns per Hectare (Rs)
7815
9290
Expenses by Value of Output (per cent)
52.8
42.2
Average Returns per Farmer Households (Rs)
8105
11258
Average Family Size
4.7
5.5
Notes: GCA = Gross Cropped Area; Gross Returns = Value of output Expenses; Expenses are those paid out
only and hence, it does not include family labour or rent for own land; Value of output is total produce
(including by products) times price.
Source: Mishra (2007)

The NSS 59th round on Income, Expenditure and Productive Assets of Farmer Households
analyses the average monthly income and consumption expenditure of farmer households in
Andhra Pradesh for the agricultural year 2002-03. The results are presented in Table 19. The
study reveals that the average monthly return of a farmer household from cultivation alone is
around Rs 743. Monthly returns from farm animals and non-farm business are calculated to
be Rs 93 and Rs 155 respectively. In addition, average monthly income in the form of wages
is Rs 643. Overall the average monthly income of the farmer household from wages, farm
business and non-farm business in the state of Andhra Pradesh is calculated to be Rs 1634.
On the other hand, the average monthly consumption expenditure of a farmer household in
the state stands at Rs 2386. From the data presented above, we conclude that there is not
much diversification of the sources of the farmer households and the income of an average
household from cultivation would hardly suffice to meet even the basic necessities of life. It
raises the basic question regarding the viability of farming itself under the present conditions
in the state.
Table 19
Average Monthly Income from Different Sources and Consumption Expenditure
per Farmer Household in Andhra Pradesh during the Agricultural Year (July02-June03)
Size Class of
Land Possessed
(Hectares)

Income
From Wages
(Rs)

Net Receipt
from Cultivation
(Rs)

Net Receipt
from Farming
of Animals (Rs)

Net Receipt
from Non-Farm
Business (Rs)

Total
Consumption
Expenditure (Rs)

< 0.01
0.01 0.40
0.41 1.00
1.01 2.00
2.01 4.00
4.00 10.00

863
786
641
380
436
248

9
140
495
1174
1999
4755

84
92
110
72
93
168

151
122
159
211
62
308

2133
2049
2274
2549
3045
4133

26
> 10.00
403
8553
-470
932
5724
All Sizes
643
743
93
155
2386
Source: NSSO (2005), Income, Expenditure and Productive Assets of Farmer Households, NSS 59 th Round
(JanuaryDecember 2003), Report No. 497(59/33/5).