Dynamics of the Agricultural Economy of Andhra Pradesh, India Since the Last Five Decades

Andhra Pradesh is one of the largest state in India, with agriculture as a major source of income for about 60% of its population. In the last 50 years, the annual growth rate of agriculture has been 2.88%, which is far below the target growth of 4% per annum. Further, Andhra Pradesh is divided into three district regions with growing demand for separate state from less developed regions. The paper examined regional disparities in agriculture in Andhra Pradesh since its formation in 1956. The study illustrates that there is a convergence among districts in agricultural growth, but least developed districts are left out of this convergence process. Both agricultural intensification and diversification strategies played important role in development of districts based on their resource endowment. Livestock based agricultural growth is evident in districts adjacent to large urban centres since the last two decades. Overall, TFP growth in agriculture and allied activities in Telangana is 13% per decade, 11% per decade in Coastal, while in Rayalaseema TFP growth has been stagnant from 1956 to 2009. Irrespective of region, the most backward districts in agriculture, that is Srikakulam, Visakhapatnam, Anantapur, Kadapa, Adilabad, Nalgonda, Mahbubnagar and Nizamabad showed stagnation in TFP growth during the last 50 years. With the existing resource endowment and technology, Telangana can increase its output by 28% from the existing level, while Rayalaseema region can enhance its output by 25%, Coastal region by only 14% as revealed from efficiency estimates