Growth and Instability in Agricultural Productivity: A District Level Analysis

This study has examined the trends in growth and instability in Indian agriculture at the district level and has identified distinctive features and drivers of productivity growth across districts. The productivity of crop sector has shown tremendous variations across districts both for the country as a whole and within a state. The varying performance of crop sector has emphasized the need for evolving regionally differentiated strategies for ensuring sustainable and inclusive agricultural growth in a state and consequently in the country. The instability in productivity continues to persist and there are wide variations in instability across different districts. To mitigate the consequences of persisting instability, large-scale promotion of stabilization measures like insurance should be pursued vigorously. The analysis of district level data has revealed the important role of modern inputs in enhancing the productivity of crop sector. The use of fertilizers has turned out to be the most important input. Along with fertilizer-use, rainfall, irrigation, source of irrigation, better human resources and road connectivity have emerged as the other critical determinants of agricultural productivity. These results signify the importance of use of modern inputs and prudent management of rainfall water, particularly in the low productivity districts.