Sources of Agricultural Productivity Growth in Orissa, India : A Regional Perspective

Following the advent of liberalisation policies, starting in the early 1990s among developing countries, there is evidence of growing regional disparities. Some theories predicted that resources will concentrate in a few growth poles around large cities and market forces will reinforce the initial advantages, resulting in the core attracting more resources at the cost of the periphery. Against this background, this article examines the growth pattern in the state of Orissa, which is the one of the backward states in India. This article studies first inter-state disparities with special focus on Orissa compared to neighbouring states, followed by inter-district comparison within Orissa's state agricultural sector. The study found that from 1991 to 2008 the growth rates of agriculture in Orissa was slower than India as a whole, but growth rates have picked up in recent years. However, there are perceptible increases in regional disparities within Orissa. Resource-rich regions (the Coastal Plains and Central Table Land) showed faster growth than resource-poor regions(Easter Ghats and Plateau) in the post-liberalisation period. Kalahandi, Balangir, and Koraput districts are unable to speed up growth. The article discusses possible ways to reduce inter-state and district disparities and increase growth in backward regions and highlights the importance of irrigated ares, rural literacy, road density, farm mechanisation, higher-input use and crop diversification away from sole crop paddy to pulses, oilseeds, and other high value crops to initiate growth in backward districts. The article suggest that the power irrigation pumps for controlled irrigation, provision of drainage facilities through development of innovative institutions and policy support (including subsidies) in backward districts will increase incomes and reduce regional disparities in backward areas ultimately bringing increased social returns