Agriculture Output Report, Fruits Surge, Cereals Decline in India

Agriculture Output Report Latest News

• New data from the Ministry of Statistics and Programme Implementation (MoSPI) reveals shifting food habits and consumption patterns, as farmers adapt by producing more high-value crops. 
• Over the past decade, the Gross Value of Output (GVO) has seen the highest rise in fruits like strawberries and pomegranates, and vegetables like parwal and mushrooms. 
  • Gross Value of Output, or GVO, is a measure of production that refers to the total value of the items produced before subtracting the value of inputs used in production.

Agriculture Output Report

• The National Statistics Office (NSO), under the Ministry of Statistics and Programme Implementation (MoSPI), has released the annual “Statistical Report on Value of Output from Agriculture and Allied Sectors (2011-12 to 2023-24)”. 
• The report provides comprehensive data on the value of output from crops, livestock, forestry & logging, and fishing & aquaculture, at both current and constant (2011–12) prices.

Key Highlights of the Agriculture Output Report

• Reflecting evolving food habits, farmers are increasingly shifting from traditional staples to high-value crops. 
• New data highlights a significant transformation in agricultural output trends over the past decade.

Robust Growth in Agriculture GVA at Current Prices

• The Gross Value Added (GVA) of agriculture and allied sectors at current prices grew by approximately 225%, rising from ₹1,502 thousand crore in 2011–12 to ₹4,878 thousand crore in 2023–24.

Steady Rise in GVO at Constant Prices

• The GVO at constant (2011–12) prices increased by about 54.6%, from ₹1,908 thousand crore in 2011–12 to ₹2,949 thousand crore in 2023–24, indicating consistent real growth in the sector.

Sharp Rise in High-Value Fruits and Vegetables

• Between 2011–12 and 2023–24, the Gross Value of Output (GVO) of certain fruits and vegetables surged dramatically:
  • Strawberries: GVO rose over 40 times to ₹55.4 crore (constant prices), and nearly 80 times to ₹103.27 crore (current prices).
  • Parmal (Parwal): Increased 17-fold to ₹789 crore.
  • Pumpkin: Rose nearly 10 times to ₹2,449 crore.
  • Pomegranate: Grew over 4 times to ₹9,231 crore.
  • Mushrooms: Jumped 3.5 times to ₹1,704 crore.

Meat Gains, Cereals Lose Share in Agri Output

• Meat: Its share in the GVO of agriculture and allied sectors rose from 5% in 2011–12 to 7.5% in 2023–24.
• Cereals: Declined from 17.6% to 14.5% over the same period, indicating a diversification away from staple grains.

Spices Also on the Rise

• Improved processing and growing demand boosted the GVO of spices, especially dry ginger, which surged by 285% to ₹11,004 crore.

Rising Incomes Drive Shift Toward Animal and Fruit-Based Diets

• As incomes increased, the share of meat in agriculture GVO rose from 5% to 7.5% between 2011–12 and 2023–24. 
• However, the 131% growth in meat GVO was still lower than that of strawberries and other high-value crops.

Modest Rise in Fruit Consumption Despite Output Growth

• Despite production growth, fruit consumption as a share of Monthly Per Capita Consumption Expenditure (MPCE) remained low:
  • Rural MPCE: Rose from 2.25% to 2.66%
  • Urban MPCE: Slight dip from 2.64% to 2.61%
• Yet, more rural households are now consuming fruits: From 63.8% in 2011–12 to 90.3% in 2022–23, especially among the bottom 20% income group.

Cereals See Decline in Consumption and Output Share

• Reflecting changing dietary patterns:
  • Urban MPCE on cereals fell from 6.61% to 3.74%
  • Rural MPCE on cereals fell from 10.69% to 4.97%
  • GVO share of cereals dropped from 17.6% to 14.5%

Agriculture Output Report – Analysis

• MoSPI data indicates a shift from cereals to fruits, vegetables, spices, and meat, driven by:
  • Technological advancements
  • Changing consumer preferences
  • Policy focus on nutrition and exports
  • Expanding market opportunities
• Consistent with Engel’s Law, food’s share in MPCE declined as incomes rose:
  • Rural areas: From 52.90% (2011–12) to 47.04% (2023–24)
  • Urban areas: From 42.62% to 39.68%
    • Engel’s Law states that as a household’s income increases, the proportion of income spent on food decreases, while the proportion spent on other goods and services, like luxury items, increases. 

Source: IE | PIB

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