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Agriculture in Himachal Pradesh: Issues for Twelfth Five Year Plan

Agriculture is the main source of livelihood for majority of the people in Himachal Pradesh. Plan allocations to agriculture have declined over the successive five year plans. While the irrigation, soil and water conservation have received liberal fund allocations over the plans, some activities such as marketing, animal husbandry and dairying have received declining allocations in the recent past. The state has emerged as a model of agricultural diversification towards high-value cash crops. But further momentum to the ongoing process seems to be in jeopardy due to paucity of two vital resources of cultivable land and the water. Also, irrigation which is vital for commercial farming has not increased at all these years. With this background, the present article seeks to examine the patterns of allocation to agriculture sector during various five year plans and also raise the issues that should be given priority in the Twelfth Five Year Plan. The results of the investigation revealed that the plan allocations were quite high during the period from mid 1960s to mid1970s. It was during the sixth five year plan (1985-80) that the allocation to agriculture dipped to around 17 per cent and remained at around that level till Eighth Plan. But after that it further slid down to 10-12 per cent in Ninth, Tenth and Eleventh Plans. Also, there is an increasing diversion of cultivated area to non-agricultural uses in the state that needs to be halted. Irrigated area needs to be increased if the comparative advantage of commercial horticultural activities is to be maintained. There is even an impending need to increase agricultural productivity in the state as productivity levels of most of the crops are well below the national yields. Lastly, the human resource required to carry out all these activities should also be not overlooked in the plan as reaching out to the farmers in the land locked terrains is a costly and time consuming process.

Agriculture in Himachal Pradesh: Issues for Twelfth Five Year Plan Virender Kumar Principal Scientist (Agril. Economics) Dept. of Agril. Economics, Ext. Edu. & Rural Sociology, COA, CSK HPAU, Palampur, HP, India – 176062. Summary Agriculture is the main source of livelihood for majority of the people in Himachal Pradesh. Plan allocations to agriculture have declined over the successive five year plans. While the irrigation, soil and water conservation have received liberal fund allocations over the plans, some activities such as marketing, animal husbandry and dairying have received declining allocations in the recent past. The state has emerged as a model of agricultural diversification towards high-value cash crops. But further momentum to the ongoing process seems to be in jeopardy due to paucity of two vital resources of cultivable land and the water. Also, irrigation which is vital for commercial farming has not increased at all these years. With this background, the present article seeks to examine the patterns of allocation to agriculture sector during various five year plans and also raise the issues that should be given priority in the Twelfth Five Year Plan. The results of the investigation revealed that the plan allocations were quite high during the period from mid 1960s to mid1970s. It was during the sixth five year plan (1985-80) that the allocation to agriculture dipped to around 17 per cent and remained at around that level till Eighth Plan. But after that it further slid down to 10-12 per cent in Ninth, Tenth and Eleventh Plans. Also, there is an increasing diversion of cultivated area to non-agricultural uses in the state that needs to be halted. Irrigated area needs to be increased if the comparative advantage of commercial horticultural activities is to be maintained. There is even an impending need to increase agricultural productivity in the state as productivity levels of most of the crops are well below the national yields. Lastly, the human resource required to carry out all these activities should also be not overlooked in the plan as reaching out to the farmers in the land locked terrains is a costly and time consuming process. Introduction Agriculture is the main source of livelihood for majority of the people in Himachal Pradesh. The farming in the state has witnessed huge transformation since independence, more so after 1971 when the state attained full statehood. The state has experienced substantial diversification in its agriculture towards high value cash crops such as fruits and vegetables. Various economic and ecological implications of this process have been examined in detail during the last fifteen years or so (Chand, 1996; Sharma, 2005 and Sharma, 2011). The continuously declining holding size, livelihood security concerns, changing consumption patterns and availability of newer technological options have, inter alia, compelled the farmers to shift to new cash crops. The agricultural diversification that was hitherto confined to selected pockets and valleys in the higher and mid-hills, has descended to new areas in the low and mid-hills of the state. Many new developments such as protected cultivation and micro irrigation have added new dimensions to the agriculture in the state. Of late, agriculture and allied activities in the state have received increased policy support from the government. Notwithstanding all these developments, sustaining this process of agricultural transformation might become difficult as the population increase, urbanization and industrialization has taken a heavy toll of the net sown area in the state. Secondly, despite liberal allocation to irrigation in the state during various plans, irrigated area has declined in the state. With this background, the present article seeks to examine the patterns of allocation to agriculture sector during various five year plans and also raise the issues that should be given priority in the Twelfth Five Year Plan. Agriculture in the State Economy The economy of the state has exhibited remarkable growth during the last fifteen years or so (Table 1). Except for the years 2000-01 and 2001-02 when it registered less than six per cent annual growth of the GDP, the growth rate of the economy has been well above seven per cent for most of the years. However, the primary sector of which agriculture and allied Table 1: Growth Rates of Gross Domestic Product originating in Primary Sector in Himachal Pradesh, 1994-95 to 2009-10 (per cent per annum at constant prices) Year Agriculture, forestry & logging, fishing, mining and quarrying Gross State Domestic Product (at factor cost) 1994-95 1.2 9.6 1995-96 2.0 6.2 1996-97 1.5 6.9 1997-98 1.6 6.4 1998-99 1.2 7.2 2000-01 15.6 6.3 2001-02 8.5 5.2 2002-03 2.2 5.1 2003-04 11.6 8.1 2005-06 6.1 8.4 2006-07 -0.6 9.1 2007-08 8.9 8.6 2008-09 -0.1 7.4 2009-10 -5.7 8.1 Source: Economic Survey, 2010-11, Department of Economics & Statistics, Government of HP. activities are the main contributors, did not do well except for the first five years of the last decade. More recently, the agriculture sector has witnessed negative growth for a couple of years even when the overall economy registered 7 to 9 per cent growth in GDP. Further, the percentage contribution of agriculture and allied sectors in total state domestic product (SDP) has declined from 26.5 per cent in 1990-91 and to 14.5 per cent in 2009-10 as a natural transition of development process. But the stark reality of agriculture being main livelihood provider remains as the proportion of population dependent upon agriculture has not declined accordingly. The state has made tremendous progress in agricultural production including horticulture. The foodgrain production in the state is expected to be 15.80 lakh tonnes in 2010-11. From the view point of commercial and diversified agriculture, the production of vegetables (including potato) touched the 13.91 lakh tonnes mark. Also, the total fruit production in the state is expected to the tune of 8.92 lakh tonnes during the current year (2010-11) of which apple alone is contributing 8.30 lakh tonnes (93% of total fruit production ). In addition to these crops, the livestock sector has also registered magnificent growth in the production of milk, wool, eggs and meat. The production of milk in the state has reached a high level of 8.84 lakh tonnes in 2008-09. The decomposition of the gross value of output in agriculture revealed that horticulture is becoming the prime mover of the growth in agriculture of late. This is amply reflected by its share in gross value of output that has gone up from 25.21 per Table 2: Per cent Gross Value Added in various Sub-sectors of Agriculture, in Himachal Pradesh, 1999-2000 to 2006-07 (at constant prices) Year Per cent gross value added Crops Horticulture Livestock Total agriculture 1999-2000 42.60 25.21 32.19 100.0 (334688) 2000-01 30.41 40.44 29.16 100.0 (382894) 2001-02 38.71 32.46 28.83 100.0 (414928) 2002-03 29.00 41.60 29.40 100.0 (418309) 2003-04 29.09 43.31 27.61 100.0 (473967) 2004-05 27.59 43.54 28.87 100.0 (519702) 2005-06 23.43 46.50 30.06 100.0 (518869) 2006-07 29.22 40.67 30.11 100.0 (552058) Note: Figures in parentheses are gross value added (Rs lakh) in agriculture. Source: ‘Gross Domestic Product of Himachal Pradesh (1999-2000 to 2006-07)’, Department of Economics & Statistics, Government of HP. cent in 1999-2000 to 40.67 per cent in 2006-07 (Table 2). The share of crop production has come down from 42.60 to 29.22 per cent during the same period. The contribution of livestock sector has remained almost stagnant at 30.0 per cent level. HP Agriculture through Five Year Plans The allocation of funds to a particular sector or activity vis-a-vis other sectors indicates the relative importance that is given to a particular sector during a particular time or a plan period. The outlays set aside for agriculture during different Five Year Plans/ Annual Plans since Independence in this hilly state have been given in Table 3. It is evident from this table that the plan allocations (as a per cent of total plan outlay) were quite high ranging from about 25 per cent to 31 per cent during the period from mid 1960s to mid1970s. This was, perhaps, attributable to the need of the times which later on came to be regarded as green revolution. Table 3 : Agriculture through Plans in Himachal Pradesh,1951-2012 (Rs lakh) Five Year/Annual Plan (AP) Agril. Outlay % of TPO* Agril. Expenditure % of TPE** Total Plan Outlay Total Plan Expenditure I (1951-56) 120.27 21.31 73.81 14.00 564.4 527.12 II (1956-61) 218.53 14.84 251.27 15.68 1472.53 1602.6 III (1961-66) 649 23.24 769.15 22.73 2793 3384.47 AP(1966-67) 279.21 31.02 155.38 16.42 900 946.05 AP(1967-68) 459 29.20 305.16 21.13 1572 1443.94 AP(1968-69) 376 24.26 278.87 17.48 1550 1595.19 IV (1969-74) 3000 29.59 2736.03 24.12 10140 11342.97 V (1974-79) 5874 24.58 4218.2 26.02 23895 16214.1 AP(1978-79) 1765.44 24.09 1730.87 25.42 7329.11 6810.17 AP(1979-80) 1699 23.27 2182.27 27.47 7300 7945.36 VI (1980-85) 10412.9 16.74 10509.95 15.81 62217 66471.4 VII (1985-90 20551 17.45 26000.17 19.63 117800 132474.75 AP (1990-91 6426 17.85 6960.94 18.43 36000 37762.93 AP (1991-92) 7496 18.28 8495 20.98 41000 40482 VIII(1992-97) 43965 17.57 48661 13.91 250200 349905 IX (1997-02) 88701 11.85 91820 11.63 748800 789672 X (2002-07) 120168 9.96     1207057   XI(2007-12) 147008 10.67     1377800   Note: TPO- Total plan outlay & TPE – Total plan expenditure Source: ‘State Statistical Abstract of Himachal Pradesh 2009-10, Department of Economics & Statistics, Government of HP. However, actual plan expenditure on agriculture in this state was much lower during the same period which may be attributed to the lower absorptive capacity of the typically subsistence hill agriculture. It was during the sixth five year plan (1985-80) that the allocation to agriculture dipped to around 17 per cent and remained at around that level (17-18 %) till eighth plan. But after that it further slid down to 10-12 per cent in ninth, tenth and eleventh five year plans. In the later part of the planning period, the gap between the allocations and expenditures has also narrowed down which might be attributed to the proper utilization of earmarked allocations. Interestingly, during 2010 the state was given ‘Leadership Award’ by a magazine group for allocating highest (12 %) plan outlay to agriculture throughout the country. Broad look at the plan allocations may not help in charting out the right course for future planning. Hence an attempt was made to examine the activity/subsector-wise fund devolutions in the recent Annual Plans (Table 4). Here it is pertinent to mention that allocations for irrigation, both major and minor, which are otherwise not covered under agricultural activities have also been included to have an ‘all inclusive view’ for the agricultural sector. As may be seen in the table, outlay for agricultural and allied activities (as a per cent of total plan outlay) have increased from 9.70 per cent in 2003-04 to 15.11 per cent Table 4: Share (%) of different subsectors in Plan Outlays in Agriculture, 2003-04 to 2009-10 Head of Development 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 1. Crop husbandry 7.11 2.83 2.96 2.75 2.99 3.23 3.84 2. Horticulture   - 3.26 3.10 2.28 1.93 1.95 2.16 3. Soil and water conservation 15.82 9.65 6.98 5.85 4.23 5.28 10.96 4. Animal husbandry 8.86 7.24 7.40 5.19 4.90 3.89 4.31 5. Dairy Development 0.55 0.40 0.34 0.32 0.24 0.12 0.12 6. Fisheries 1.14 0.86 0.96 0.78 0.67 0.58 0.61 7. Agricultural research & education 0.77 19.69 21.66 20.80 15.02 15.68 19.17 8. Marketing & quality control 7.18 3.71 5.70 3.53 2.72 2.82 3.09 9. Co-operation 0.60 0.68 0.61 0.45 0.34 0.39 0.42 10. Major & medium irrigation 12.34 8.37 7.53 11.29 32.36 31.34 20.84 11. Minor irrigation 44.00 41.99 41.15 45.57 33.65 33.90 33.61 12. Command area development 1.63 1.31 1.62 1.19 0.98 0.84 0.86 Agricultural Plan Outlay 100.00 100.00 100.00 100.00 100.00 100.00 100.00  ( in Rs lakh) 12956 16166.2 19311.7 26158.9 35850.2 41485.4 40795  Ag. Outlay (% of Total Plan Outlay) 9.70 11.54 12.07 14.53 17.07 17.29 15.11 Total Plan Outlay (Rs lakh) 133500 140038 160000 180000 210000 240000 270000 Source:Economic Survey (Various Issues), Department of Economics & Statistics, Government of HP. in 2009-10, the allocation being highest at 17.29 per cent in 2008-09. The composition of this outlay reveals that 50 to 55 per cent of the total funds go for irrigation, both major & medium as well as minor irrigation. However, it is saddening to note that the net irrigated has remained stagnant at 17-19 per cent all these four decades since 1971. Also, soil and water conservation has been another area that has got plenty of funds in the last decade or so and rightly so as the uneven terrain needs massive treatments. However, the time has come to examine whether such huge investments have increased the productivity of agriculture or not. Therefore, the outcomes of such efforts need to be evaluated objectively. It is worrying that the allocations for animal husbandry and dairying have come down during the last 7-8 years. This subsector is very important from the holistic farming approach as it has both economic and ecological implications for the commercial hill farming. As such it should be given due importance in the Twelfth plan. The allocation to marketing and quality control has also showed declining trend over these years. But given the fact that state has plentiful fruits and vegetables production and due to poor road connectivity in the remote interiors of the state a lot of wastage occurs, this activity needs further strengthening in the form of controlled atmosphere chambers, cold chains, etc. besides improved connectivity. Land Constraints in Himachal Pradesh In the hilly regions, the area under plough is always a cause of serious concern and it is impossible to bring more area under cultivation due to colossal costs involved. The trio of population increase, urbanization and industrialization has taken a heavy toll on the net sown area in the state. The temporal changes in land use pattern in the state during the period 1974-75 to 2007-08 are given in Table 5 and a few observations are as follows. The net sown area initially witnessed an increase from about 552.53 thousand ha in triennium ending (TE) 1974-75 to 582.80 thousand ha in TE 1990-91. However, it declined by around 31 thousand hectares to 551.83 thousand ha by TE 1999-2000. Thus, there was massive shrinkage of cultivated land during the decade of nineties. The slump continued unabated and the area under plough dwindled by another 22 thousand hectares to 529.7 thousand ha by TE 2007-08. The net sown area is declining precipitously (the net sown area in the state declined by 46,700 ha between 2000-01 and 2007-08) in the extant culturable land scarce mountain terrain. In the land category that is amenable to cultivation such as current fallows, other fallows and culturable waste, the land under fallows has increased considerably and it was more so for the category ‘other fallows’. Of late, such factors as the wild animal menace (monkeys, blue bulls, stray animals, wild boars, etc) and the wide spread infestation by obnoxious weeds (such as Lantana, Parthenium Ageratum, etc) have been fuelling the process of rendering culturable lands unfit for use and the farmers are being compelled to abandon their main livelihood option of farming in many areas. On the other hand, land put to non-agricultural uses increased after mid 80s and the increase was quite pronounced after mid 90s. Here it is worth mentioning that most of the increase in the non-agricultural uses category comes from the cultivated area only. The diversion of good quality fields to such non-agricultural uses on and near the road heads and small hamlets/markets is a common feature anywhere in the state. Most of these changes in all likelihood may not have been incorporated in the revenue records also. Such inclusions might flare up the decline in the net sown area in the state. This will have implications not only for the sustainability of ongoing diversification but also for food security of the state. Table 5: Changes in Land Use in Himachal Pradesh, 1974-75 to 2007-08 ('000 ha) Land use category Triennium ending 1974-75 1980-81 1990-91 2000-01 2007-08 1.Reporting Area (According to Village Papers) 2933.6 (100.00) 2991.4 (100.00) 3364.23 (100.00) 4536.6 (100.00) 4493.1 (100.00) 2.Forests 638.0 (21.75) 782.43 (26.16) 1001.43 (29.77) 1093.37 (24.10) 1094.53 (24.36) 3. Barren 130.23 (4.44) 151.2 (5.05) 184.07 (5.47) 856.60 (18.88) 652.9333 (14.53) 4. Non-Agricultural Uses 195.6 (6.67) 182.67 (6.11) 198.67 (5.91) 283.00 (6.24) 465.57 (10.36) 5.Culturable Waste 129.5 (4.41) 161.3 (5.39) 126.13 (3.75) 117.10 (2.58) 127.57 (2.84) 6. Permanent Pastures 1187.17 (40.47) 1050.73 (35.13) 1162.27 (34.55) 1497.27 (33.00) 1482.73 (33.00) 7. Miscellaneous Tree Crops 43 (1.47) 42.67 (1.43) 45.73 (1.36) 62.70 (1.38) 65.40 (1.46) 8.Current Fallows 53.53 (1.82) 45.1 (1.51) 44.00 (1.31) 55.77 (1.23) 59.50 (1.32) 9 Other Fallows 3.6 (0.12) 6.97 (0.23) 19.27 (0.57) 18.93 (0.42) 15.33 (0.34) 10. Net Sown Area 552.93 (18.85) 568.37 (19.00) 582.80 (17.32) 551.83 (12.16) 529.73 (11.79) Source: Computed from the data from the Annual Season and Crop Report (Various Issues), Directorate of Land Records, and Statistical Outline of Himachal Pradesh, 2009-10, Department of Economics and Statistics, Government of HP. Crop Diversification and Changes in Cropping Pattern Notwithstanding the decline in area under plough, the state has witnessed several changes in its cropping pattern over the years. Major cropping pattern changes with respect to major crops and crop groups have been examined at various points of time, i.e. starting with 1992-93 through 2004-05 (Table 6). As is evident, foodgrains which accounted for about 85 per cent of the total cropped area in the state witnessed a small decline (about four per cent points) in area during the period 1992-2004. Among the foodgrains, wheat during rabi and maize during kharif seasons dominated the cropping pattern accounting for 38.57 per cent and 31.31 per cent of the gross cropped area, respectively. The area under pulses, oilseeds and ‘other cereals’ (which included ragi and other common and small millets) declined during the period 1992-2004. Area under fruits also increased substantially to 6.45 per cent over the period under consideration with apple continuing to be the major fruit crop of the state. Here it is worth mentioning that the productivity levels of most of the crops except maize and vegetables in the state are below the national level yields. Table 6: Changes in Cropping Pattern in HP, 1992-93 to 2004-05 (% cropped area) Crops 1992-93 1997-98 2002-03 2004-05 Rice 8.42 8..74 8.81 8.34 Maize 31.90 31.62 30.03 31.31 Wheat 38.90 38.26 38.03 38.57 Barley 2.79 2.81 2.50 2.46 Other cereals 2.08 1.67 2.17 1.30 Pulses 4.22 3.64 3.19 2.94 Total foodgrains 88.32 86.73 85.67 84.91 Fruits 4.78 5.63 6.51 6.45 Vegetables 2.61 3.42 3.63 3.60 Oilseeds 2.35 2.04 1.47 1.61 Others 1.94 2.17 2.72 3.38 Source: Computed from the data from the Annual Season and Crop Report (Various Issues), Directorate of Land Records, Government of Himachal Pradesh, Shimla. The state has emerged as a model of agricultural diversification towards high-value cash crops, mainly off-season vegetables. Earlier, the production of vegetables such as green peas, tomato, beans, cabbage, cauliflower, capsicum, etc in the state was confined to select mid and high-hill pockets. However, remunerative returns from these off season vegetables have allured the farmers in low and mid-hill locations in the 1990s to undertake the cultivation of these crops. Recently, the vegetable and flower cultivation in the polyhouses has further given momentum to the diversification of agriculture in the state. These changes have been aptly captured in Table 7. At present, the state is producing 12.06 lakh tonnes of vegetables (excluding potato) from an area of 63,879 ha, with an average productivity of 18.88 t/ha (2009-10). Most of the increased production of the vegetables has come through an increase in area as shown by the compound growth rate (CGR) of 6.29 per cent per annum. The growth rate of productivity of vegetables, however, was 0.93 per cent per annum. Thus, there is a strong need to increase the productivity of vegetables in the state as the further shifting of area from main foodgrain crops will have its own ramifications from the food security perspective. Table 7: Area, Production and Yield of Vegetables in HP, 1990-91 to 2009-10 Year Area (ha) Production (tonnes) Yield ( t/ha) 1990-91 23,000 3,65,000 15.87 1994-95 24,500 4,00,000 16.33 1998-99 29,000 5,00,000 17.24 2002-03 35,220 6,21,918 17.66 2009-10 63,879 12,06,242 18.88 Growth rate (per cent per annum) 6.29* (0.0442) 7.28* (0.0456) 0.93* (0.0026) Note: Figures within parentheses are standard errors. * Indicates significance at 5 % probability level. Source: Directorate of Agriculture, Government of HP, Shimla. Irrigation and Crop Diversification The agriculture in the state is overwhelmingly dependent on natural conditions as about 81.0 per cent of the cultivated area is rainfed. Because of the undulating topography, it is not easy to bring more area under irrigation like the plains, as it involves huge costs. Not only that, the availability of water is also uneven across various altitudinal regions as mid-hills have higher availability of water as compared to other regions. The ultimate irrigation potential, 85.0 per cent of which is in minor irrigation, is estimated to be around 66 per cent of the net sown area in the state (Table 8). A total of 2.39 lakh ha of culturable command area (CCA) has been created up to 31. 12. 2010. This constitutes 71 per cent of the ultimate irrigation potential, thus leaving 29 per cent of the potential untapped. However, only about 50.0 per cent of the created CCA stands used till date. The changes in net irrigated area by different sources of water in the state during the period 1995-96 to 2007-08 have been brought out in Table 10. The net irrigated area decreased by 11240 ha during the past one decade or so. The broad composition of the net irrigated area by source of water reveals that ‘other sources’, which primarily include kuhls (gravity flow channels), account for 78 per cent of the irrigated area in the state. Here it is important to Table 9: Assessed, Created and Utilized Irrigation Potential in HP Sl. No. Particulars Area (lakh ha) 1. Total geographical area ( i.) By professional survey 55.67 ( ii) By village papers 45.45 2. Net sown area (2007-08) 5.09 3. Ultimate irrigation potential available of which 3.35 (65.81 % of net sown area) (i) Major and medium irrigation 0.50 (14.93 %) (ii) Minor irrigation 2.85 (85.07 %) 4. CCA created up to 31.12.2010 2.39 (71.34 %) Source: Economic Survey, Himachal Pradesh, 2010-11, Department of Economics and Statistics, Government of HP. point out that most of the kuhl irrigation in the state has been affected adversely in comparison to what it used to be, say two decades ago. Partly, this may be attributed to the receding snowline and consequent drying up of the springs from where these kuhls emanate due to changing climate. The unrelenting population pressure, unsystematic construction, poor management, etc. have further rendered these kuhls less effective. In the high-hill districts of Kinnaur, Kullu, Lahaul & Spiti and Shimla, which are the leading cash crop producing districts the entire irrigation is through the kuhls. All these changes are going to impact the diversification process adversely in the state. So there is a strong need to strengthen the irrigation infrastructure in the state on one hand and use the scarcest natural resource of water more prudently on the other. Table 10: Source-wise Net Irrigated Area in HP: 1995-96 to 2007-08 (in ha) Source 1995-96 2007-08P Canals 3393 (3.24) 4390 (4.69) Tanks 397 (0.04) 236 (0.25) Shallow & deep wells 13082 (12.48) 15752 (16.84) Other sources 87918 (83.90) 73172 (78.22) Total 104790 (100.0) 93550 (100.0) Note: Figures within parentheses show percentages to total. P: Provisional Source: Statistical Outline of Himachal Pradesh, 2009-10, Department of Economics and Statistics, Government of HP. Issues for Twelfth Plan Given the aforementioned agricultural production and policy regime, it follows from the above that while the liberal fund allocations for irrigation, soil and water conservation are necessity of the state, these need to be evaluated objectively. There is also a need to enhance the allocations for animal husbandry and dairying activities in the state. Further, there is a need to strengthen the marketing infrastructure in the form of controlled atmosphere chambers, cold chains, etc. in the ensuing Twelfth Five Year Plan. Again, there is a need to halt the ongoing shifting of quality crop lands to non-agricultural uses in the state as it might jeopardize the food security. The other vital natural resource of water need to be used judiciously as the success of comparative advantage of commercial horticultural activities hinges on this. Again, there is even an impending need to increase agricultural productivity in the state as productivity levels of most of the crops are well below the national yields. The success of various ambitious schemes of the government such as Pandit Deen Dayal Kisan-Bagwan Samridhi Yojna to augment its micro irrigation potential on one hand and to promote precision/polyhouse cultivation on the other, diversification project of agriculture with the help from Japan International Cooperation Agency (JICA), Horticulture Technology Mission to boost horticultural production in the state and Doodh Ganga Yojna to develop and augment milk production programme in the state, etc. is also contingent upon the scarce land and water resources. The human resource required to carry out all these activities should also not be overlooked in the plan as reaching out to the farmers in the land locked terrains is a costly and time consuming process. References Chand, Ramesh (1996), ‘Ecological and Economic Impact of Horticultural Development in the Himalayas: Evidence from Himachal Pradesh’, Economic and Political Weekly, Vol. XXXI, No. 26. Sharma, H. R. (2005), ‘Agricultural Development and Crop Diversification in Himachal Pradesh: Understanding the Patterns, Processes, Determinants and Lessons’, Indian Journal of Agricultural Economics, Vol. 60, No. 1. Sharma, H. R. (2011), ‘Crop Diversification in Himachal Pradesh: Patterns, Determinants and Challenges’, Indian Journal of Agricultural Economics, Vol. 66, No. 1, pp. 97-114.