HORTICULTURAL SECTOR IN INDIA: RETROSPECT AND PROSPECT

International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 - 6510(Online), INTERNATIONAL JOURNAL OF MANAGEMENT (IJM) Volume 5, Issue 4, April (2014), pp. 66-72 © IAEME ISSN 0976-6502 (Print) ISSN 0976-6510 (Online) Volume 5, Issue 4, April (2014), pp. 66-72 © IAEME: www.iaeme.com/ijm.asp Journal Impact Factor (2014): 7.2230 (Calculated by GISI) www.jifactor.com IJM ©IAEME HORTICULTURAL SECTOR IN INDIA: RETROSPECT AND PROSPECT V. SURENDRAN Ph.D, Full-Time Research Scholar, Department of Economics, Pachaiyappa’s College, Chennai-30 ABSTRACT Horticulture has become a key driver for economic development in many of the states in the country and it contributes 30.4 per cent to GDP of agriculture. Horticultural crops play a unique role in India’s economy by improving the income of the rural people. Cultivation of these crops is labour intensive and as such they generate lot of employment opportunities for the rural population. Fruits and vegetables are rich source of vitamins, minerals, proteins, and carbohydrates etc. which are essential in human nutrition. Thus, cultivation of horticultural crops plays a vital role in the prosperity of a nation and is directly linked with the health and happiness of the people. Globally, India is the second largest producer of fruits and vegetables. It is the largest producer of mango, banana, coconut, cashew, papaya, pomegranate etc., in the world and the largest producer and exporter of spices. It ranks first in productivity of grapes, banana, cassava, peas, papaya etc., and the export growth of fresh fruits and vegetables in term of value is 13 per cent and of processed fruits and vegetables is 17.42 per cent in 2011-12. The focused attention on horticulture has paid dividend and resulted in increased production and export. The production of horticultural produce has increased 7-fold which ensured nutritional security and employment opportunities in the country. Keywords: Horticulture, Agriculture, GDP, Nutrition, Global. 1.0 INTRODUCTION Horticulture is the industry and science of plant cultivation including the process of preparing soil for the planting of seeds, tubers, or cuttings. The work involves fruits, berries, nuts, vegetables, flowers, trees, shrubs, and turf. Horticulturists work to improve crop yield, quality, nutritional value, and resistance to insects, diseases, and environmental stresses (Ghosh, 1999).Horticulture primarily differs from agriculture in two ways. First, it generally encompasses a smaller scale of cultivation, using small plots of mixed crops rather than large fields of single crops. Secondly, horticultural cultivations generally include a wide variety of crops, even including fruit trees with ground crops. In Central America, horticulture involved augmentation of the forest with useful trees such as 66 International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 - 6510(Online), Volume 5, Issue 4, April (2014), pp. 66-72 © IAEME papaya, avocado, cacao, ceiba and sapodilla. In the cornfields, multiple crops were grown such as beans (using cornstalks as supports), squash, pumpkins and chilli peppers, in some cultures tended mainly or exclusively by women (Epstein, 2002). 1.1 DEVELOPMENT OF HORTICULTURE Horticulture has become a key driver for economic development in many of the states in the country and it contributes 30.4 per cent to GDP of agriculture, which calls for technology-led development, where the Division of Horticulture of Indian Council for Agricultural Research is playing a pivotal role. The research priorities are for genetic resource enhancement and its utilization, enhancing the efficiency of production and reducing the losses in environment friendly manner. Effective management, enhancement, evaluation and valuation of genetic resources and development of improved cultivation, with high quality characteristics, productivity, resistance to pest and disease and tolerant to abiotic stresses have been developed. The Government has also taken steps to increase the value of production by reducing variability in yield, quality, reducing crop loss and increasing marketability through development and site specific technologies for different horticultural crops. Developing system for productive use of nutrients, water and reducing impact of pest and disease through the use of innovative diagnostic techniques have also been given importance. Moreover, improving the understanding of interaction between native ecosystem and production system and develop best practices to conserve biodiversity and sustainable use of resource is also being stressed (Bansil, 2004). 1.2 IMPORTANCE AND SCOPE OF HORTICULTURE IN INDIA India with more than 68 million tonnes of fruits and 121 million tonnes of vegetables in 2011-12 is the second largest producer of fruits and vegetables in the world, next only to China. However, per capita consumption of fruits and vegetables in India is only around 46 gram and 130 gram respectively against a minimum of about 92 gram and 300 gram respectively recommended by Indian Council of Medical Research and National Institute of Nutrition. With the present level of population, the annual requirement of fruits and vegetables will be of the order of 110 million tonnes and 360 million tonnes respectively (Karunakaran and Palanisami, 2012). It is estimated that India has 12.66 million hectares of cultivable wasteland as on 2011-12, which is lying idle, which can be brought under orchard crops without curtailing the area under food crops. The country has abundant sunshine throughout year, surplus labour and widely varied agro-climatic conditions, which offer high potential for successful and profitable commercial horticulture. The major crops in case of fruits are mango, banana, citrus, apple, pineapple and in case of vegetables are potato, onion, tomato and other seasonal vegetables (Government of India, 2012a). Globally, India is the second largest producer of fruits and vegetables. It is the largest producer of mango, banana, coconut, cashew, papaya, pomegranate etc., in the world and the largest producer and exporter of spices. The focused attention on horticulture has paid dividend and resulted in increased production and export. The production of horticultural produce has increased 7-fold which ensured nutritional security and employment opportunities in the country. 1.3 GROWTH RATE OF HORTICULTURAL CROPS OUTPUT AMONG MAJOR STATES Trends in growth rate in value of output from vegetables and fruits has witnessed a significant slowdown in large number of states during the 2000s, while very few states namely, Gujarat, Punjab and some North-eastern states saw some acceleration in growth rates. Jharkhand registered the highest growth (23.8%) in value of output from vegetables and fruits during the 2000s, followed by Gujarat (19.6%), Chhattisgarh (15.2%), Himachal Pradesh (14.2%), Andhra Pradesh (13.1%), Punjab (12.5%), Kerala (10.2%) and Orissa (10.2%). Jammu and Kashmir, Uttarakhand, Tamil Nadu and Maharashtra also had more than national growth rate (6%) in production of fruits 67 International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 - 6510(Online), Volume 5, Issue 4, April (2014), pp. 66-72 © IAEME and vegetables. Assam, Bihar, Karnataka and some North-eastern states had negative growth in value of output from fruits and vegetables (Government of India, 2012b). Table - 1 presents the growth rate of output of horticultural crops which includes fruits and vegetables among the major states in India in the last three decades. Table - 1: Trend Growth Rates in Value of Output of Fruits and Vegetables in Major States (Figures in percentage) States 1980s 1990s 2000s 1991-92 to 2009-10 Andhra Pradesh 9.3 16.3 13.1 12.4 Assam 17.4 11.6 -0.3 7.1 Bihar 25.7 10.9 -0.6 7.2 Gujarat 9.7 10.1 19.6 10.7 Haryana 7.5 26.0 3.0 16.4 Himachal Pradesh 17.5 15.1 14.2 14.4 Jammu & Kashmir 24.6 15.0 9.7 11.1 Karnataka 25.7 13.0 -1.8 8.8 Kerala 14.4 14.4 10.2 9.0 Madhya Pradesh 15.6 21.7 5.9 11.6 Maharashtra 19.3 14.6 7.5 12.1 Orissa 11.5 13.3 10.2 10.5 Punjab 20.9 10.0 12.5 8.9 Rajasthan 16.7 22.7 3.5 9.3 Tamil Nadu 16.1 14.5 7.6 7.9 Uttar Pradesh 7.0 17.5 1.1 12.5 West Bengal 15.9 20.4 4.1 14.3 All-India 14.3 15.3 6.0 11.2 Source: Calculated from Agricultural Statistics at a Glance, various issues, Ministry of Agriculture and Cooperation, Government of India, New Delhi. It is noted that the growth in the output value of fruits and vegetables which comprise the horticultural crops has gone up at the All-India level from 14.3 per cent in the 1980s to 15.3 per cent in the 1990s, but has declined to 6 per cent in the 2000s and hence, the overall growth rate for the three decades stands at a very healthy level of 11.2 per cent. However, the growth rate of the value of output of the horticultural crops has declined in some states, while it has gone up in some other, though at the All-India level, it has gone up in the 1990s. But, during the 2000s, most of the major states have witnessed a sharp decline in the growth rates, which has pulled down the national growth rate to a level of 6 per cent. Hence, even though the growth rate has come down in most of the states, the sector has posted a healthy rate of 6 per cent and attaining a growth rate of over 11 per cent for a thirty year period is quite stunning. 1.4 Food Consumption Trends: Increasing Importance of Horticultural Products The marked rise in availability of food and rising income have been accompanied by changes in the composition of diet. The process involved in such dietary change appears to follow a pattern involving two main stages. In the first stage, known as the ‘expansion’ effect, the main change is in terms of increased energy supplies, with these extra calories coming from cheaper foodstuffs of vegetable origin. The second stage, called the ‘substitution’ effect, results in a shift in the consumption of foodstuffs with no major change in the overall energy supply. In contrast to the first stage, this one is region/country-specific and is influenced by culture, religious traditions and other 68 International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 - 6510(Online), Volume 5, Issue 4, April (2014), pp. 66-72 © IAEME socio-economic factors. In particular, such traditions can influence the extent to which livestock products substitute fruits and vegetables and the specific types of meat and animal products consumed (Sharma and Jain, 2011). The average monthly per capita consumer expenditure (MPCE) in 2009-10 stood at Rs. 1463.72 in urban and Rs. 736.07 in rural India (Table - 2). The per capita total consumption expenditure in urban areas was about 90 percent higher than that of the rural areas, while in case of food expenditure it was about 44 percent higher. Between 1987-88 and 2009-10, the highest increase in MPCE was observed in non-food expenditure in both rural and urban areas. Among food items, beverages registered the highest increase (>5 times) in expenditure, followed by fruits and vegetables (about 5 times) in rural households. The expenditure on cereals and cereal substitutes has increased by about 3.5 times between 1987-88 and 2009-10. In case of urban households, the highest increase in MPCE was on vegetables (5.9 times), followed by fruits and eggs, fish and meat by over 5 times. Table - 2 presents the changes in expenditure on food consumption, especially in the case of fruits, nuts and vegetables during the period 1987-88 to 200910 with the help of the household consumption expenditure data taken from the reports of National Sample Survey Organisation (NSSO) for the rural and urban areas. Table - 2: Changes in Expenditure on Horticultural Products among Rural and Urban Consumers in India, 1987-88 to 2009-10 (in Rs. Per capita per month, current prices) Item 1987-88 1993-94 1999-2000 2004-05 2006-07 2007-08 2009-10 37.88 11.75 333.15 43.06 12.47 363.42 48.53 13.56 395.04 271.57 291.38 331.74 341.03 624.53 695.16 736.07 49.73 25.52 467.82 56.87 28.00 517.25 64.34 31.02 574.61 702.78 795.25 889.11 Vegetables Fruits & nuts Total Food Total Non-food 8.23 2.57 100.82 17.00 4.90 177.80 Rural 28.98 34.07 8.36 10.42 288.80 307.60 57.28 108.30 197.36 Total Exp. 158.10 286.10 486.16 Vegetables Fruits & nuts Total Food Total Non-food 13.12 6.27 139.73 25.00 12.20 250.30 579.17 Urban 43.90 46.84 20.68 23.65 410.84 447.41 110.19 210.44 444.08 657.19 Total Exp. 249.92 464.30 854.92 1104.60 1170.60 1312.50 1463.72 Source: NSSO, Household Consumer Expenditure in India, Government of India, New Delhi, various reports. The table suggests that in the case of vegetables, per capita per month expenditure in the rural areas has gone up from Rs. 8.23 in 1987-88 to Rs. 48.53 in 2009-10, while that of fruits and nuts has moved up from Rs. 2.57 to Rs. 13.56 in the same period. This indicates a huge rise in the demand for the horticultural products which include vegetables, fruits and nuts even in the case of rural households. Among the urban households, the per capita per month expenditure has increased from Rs. 13.12 in 1987-88 to Rs. 64.34 in 2009-10, that on fruits and nuts has moved up from Rs. 6.27 to Rs. 31.02 in the same period. This clearly shows more than 500 per cent rise in the demand ad consumption of horticultural products in a span of over 20 years. This certainly augurs well for the future of horticultural crops in India, which is particularly important given the rising potential of income of the people in the country. 69 International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 - 6510(Online), Volume 5, Issue 4, April (2014), pp. 66-72 © IAEME Table - 3: Share of Expenditure on Horticultural Products in Total Monthly per Capita Consumer Expenditure 1987-88 1993-94 1999-2000 2004-05 2009-10 Item Rural Vegetables 8.2 9.6 10.0 11.4 12.3 Fruits & nuts 2.5 2.8 2.9 3.5 3.4 Total Food 63.8 62.1 59.4 53.3 53.7 Total Non-food 36.2 37.9 40.6 46.7 46.3 Total Exp. 100.0 100.0 100.0 100.0 100.0 Urban Vegetables 9.4 10.0 10.7 10.6 11.2 Fruits & nuts 4.5 4.9 5.0 5.5 5.4 Total Food 55.9 53.9 48.1 40.0 39.3 Total Non-food 44.1 46.1 51.9 60.0 60.7 Total Exp. 100.0 100.0 100.0 100.0 100.0 Source: Based on Table - 2 The percentage share of expenditure on vegetables has gone up from 8.2 per cent in 1987-88 to 12.3 per cent in 2009-10, while in the case of fruits and nuts, it has moved from 2.5 per cent to 3.4 per cent in the same period and thus, the total share of consumption expenditure on the horticultural products in the rural households has moved up from 10.7 per cent to 15.7 per cent in the last 20 years. In the case of the urban households, the share of consumption expenditure on these items has increased from 9.4 per cent to 11.2 per cent, while that of fruits and nuts has gone up from 4.5 per cent to 5.4 per cent and hence, the combined share of household consumption expenditure has gone up from 13.9 per cent to 16.6 per cent between 1987-88 and 2009-10. This clearly indicates that there is a growing demand for the horticultural products among both the rural and urban households, though the latter spend more on such products compared to that of their rural counterparts. In order to throw more light on the household consumption demand for the horticultural products, the consumption expenditure pattern of the rural and urban households among the bottom and top 30 per cent is compared with the help of the data presented in Table - 4. Table - 4: Changing Consumption Pattern of Poor and Rich on Horticultural Products in Rural and Urban areas in India (in Rs. per capita per month) Lower Expenditure Group Upper Expenditure Group (30 %) (30 %) Item % % 1993-94 2009-10 1993-94 2009-10 change change Rural Vegetables 42.66 105.01 146.16 98.06 192.18 95.98 Fruits & nuts 5.34 13.16 146.44 45.78 82.77 80.80 Total Food 411.30 774.04 88.19 1113.37 1768.58 58.85 Urban Vegetables 55.20 128.65 133.06 161.22 263.06 63.17 Fruits & nuts 12.49 30.16 141.47 115.95 188.57 62.63 Total Food 536.12 1043.25 94.59 1665.27 2648.03 59.02 Source: NSSO, Household Consumer Expenditure in India, Government of India, New Delhi, various reports. 70 International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 - 6510(Online), Volume 5, Issue 4, April (2014), pp. 66-72 © IAEME It is observed from the table that the per capita per month expenditure on the vegetables among rural lower expenditure group has gone up from Rs. 42.66 in 1993-94 to Rs. 105.01 in 200910, which is a change of 146.16 per cent over a period of 16 years, while in the case of upper 30 per cent of the expenditure group, the same has gone up from Rs. 98.06 to Rs. 192.18 in the same period, with a change of 95.98 per cent. Thus, the rate of change in the per capita per month expenditure on vegetables is quite higher among the bottom 30 per cent of the expenditure class, the absolute amount is higher in the case of the upper 30 per cent. The same is seen in the case of expenditure on fruits and nuts as well: it has gone up from Rs. 5.34 to Rs. 13.16 among the bottom 30 per cent (146.44 per cent change), while the same has increased from Rs. 45.78 to Rs. 82.77 between 1993-94 and 2009-10 with a change of 80.80 per cent. In the case of the urban households, the expenditure on vegetables by the bottom 30 per cent has moved up from Rs. 55.20 in 1993-94 to Rs. 128.65 in 200910, which is a change of 133.06 per cent, while in the case of upper 30 per cent, it has moved up from Rs. 161.22 to Rs. 263.06 in the same period with a change of 63.17 per cent; similarly, the expenditure on fruits and nuts per capita per month has gone up from Rs. 12.49 to Rs. 30.16 (141.47 per cent change) and from Rs. 115.95 to Rs. 188.57 (62.63 per cent change) among the bottom 30 per cent and upper 30 per cent respectively. This clearly brings out the fact the urban households spend more on the horticultural products than that of the rural households, while the rich households typically spend more on such items compared to that of poor households. Moreover, the change percentage is higher for the urban households among both the poor and rich households compared to that of the rural households. 2.0 CONCLUSION The analysis indicates that there is a growing trend in the area allotted for the cultivation of horticultural crops like vegetables and fruits all over the country, which has resulted in the growth in the value of output in the last 30 years. Though the rate of growth in the value of output of the horticultural products has come down during the 2000s, it is still higher than the overall growth of the agricultural sector, which augurs well of the horticultural sector in India. Moreover, there is also huge demand for the horticultural products and it is growing at a considerable rate in both the rural and urban households and among both the poor and rich households. 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