Overview

Odisha is an agrarian state with about 70 percent of the population of the State dependent on
agriculture. It drives the economy towards inclusive and sustainable development.
Agriculture is a crucial sector in Odishas economy in terms of its contribution towards the
Gross State Domestic Product, employment, environment sustainability, livelihood
dependency of rural people etc. The Agriculture sector in Odisha broadly comprises of
agriculture, horticulture, animal husbandry, fisheries, forestry and other related activities.
About 39.69% of the total geographical area of the state consists of the land under
cultivation. The rich natural resource endowment with prevalent diversified agro-climatic
conditions of the State suitable for a wide variety of crops offers immense scope for
agricultural growth. Increasing agriculture production and productivity is necessary for
ensuring food security, livelihood security and nutritional security. There is need to improve
agricultural production and productivity with land and water management, rain-fed
agriculture, agricultural markets, better technology, higher public and private investments and
effective implementation of ongoing program in agriculture and allied sectors. It is the
endeavor of the Government to make agriculture a viable means of livelihood while ensuring
food security. Government has intensified the efforts to improve production and productivity
with sustainable agricultural practices and foster inclusive growth to strengthen agricultural
economy and income of the farmers with higher investment, efficient production technology,
post-harvest solutions, effective value addition and remunerative market options.

Important Agricultural Outputs

Odisha being an agriculture intensive state has a lot of offerings in terms of cereals, pulses,
fruits and vegetables. National Food Security Mission was launched in the state in the period
2007-08 to increase production of rice and pulses through area expansion and enhancement
of productivity. The crop distribution for last seven years is as given below:

NFSM-Rice: To promote hybrid paddy cultivation, a sum of 198.29 lakhs was utilized for
conducting 3000 hectares of demonstration in paddy fields in 14 districts during the year
2014-15. It has been programmed to take the demonstration to 5000 Ha with a budget of
365 lakhs for the same in the year 2015-16. Also, a sum of 200 lakhs has been proposed for
local initiatives on marketing and value addition activities such as supply of mini rubber rice
shelters and mini Chuda/Mudhi making machines during 2015-16.

System of Rice intensification: This technology allows use of less input such as seeds, water
etc. During the period 2014-15, SRI was implemented in 9937 Ha. with an expenditure of
497.35 lakh. For the period 2015-16, SRI is to be implemented in 21,000 Ha. with a budget of
1052 lakh.
10,000
7,5416,8136,9176,828
8,000 6,8596,825
5,807
6,000
4,000
2,000
0

9,497

7,613

Rice (In 000 MT)

NFSM-Pulses: The schemes related to pulses have been implemented in all the districts of
the state. During 2014-15 sum of 1289.04 lakhs have been utilized against GoI allocation
of 3500.88 lakhs. It has been programmed to implement different interventions for
enhancing pulse production with an estimated cost of 3168.52 lakhs for the period 2015-16.
During 2014-15, use of micro-nutrients and bio fertilizers were popularized in 3050 Ha and
240 Ha respectively with the total expenditure of 15.49 lakh (till Dec, 2014). Similarly
during 2015-16 it has been programmed to popularize the use of micro-nutrients and bio
fertilizers in 20,000 Ha. and 10,000 Ha. respectively with budget estimate of 205 lakhs.
500 337
400
300
200
100
0

351

384

381

398

427

424

419

247

Pulses (In 000 MT)

NFSM-Coarse cereals: Maize and Ragi are two major coarse cereals grown in the state in
about 2.80 lakh Ha. and 1.66 lakh Ha. areas respectively. The productivity of Maize and Ragi
is estimated to be 2785 Kg and 867 Kg per hectare respectively. NFSM-Coarse Cereals are
being implemented in 6 districts of the State namely Ganjam, Gajapati, Keonjhar, Koraput,
Nawrangpur and Rayagada. The total expenditure for intervention has been 160.60 Lakh
till Dec, 2014 against a grant of 343 Lakh. The area under demonstration was 5, 560 Ha.
during the period 2014-15 and it has been programmed to be extended to 7, 500 Ha.

Coarse Cereals (In 000 MT)

400
200
0

NFSM-Commercial Crops: The commercials crops produced in the State are namely the
fiber crops i.e. Cotton, Jute and Mesta and Sugarcane.
Cotton: It is a major commercial crop predominantly grown in the KBK districts in Kharif
season. Various interventions for the development have been taken up in the period 2014-15
with total expenditure of 59.93 lakh. For the period 2015-16 the total expenditure has been
proposed to be 103.67 Lakh for the same purpose.

Cotton (In 000 MT)

400
300
145
200
100
0

108

125

146

147

241

336

231

299

Jute and Mesta: These are two important cash crops grown in the state. Till Dec, 2014
41.20 lakh has been used for Front Line Demonstrations (FLD) on Production Technology
over 280 Ha. on Jute and 320 Ha. on Mesta. For the period 2015-16, it has been programmed
to have an estimated expenditure of 44 lakh. There are also plans for two State level
Training programs to be organized at an estimated cost of 0.80 lakh during the period 201516.

Jute+Mesta (In 000 MT)

150
100
50
0

Sugarcane: Under Technology mission a scheme is being developed to popularize new

cultivators by multiplying breeder and foundation level planting materials. Sustainable
Sugarcane Initiative and Ratoon Management Demonstrations were taken up in 466 Ha. with
the total exposure of 63.43 lakh. Similar interventions with a proposed cost of 200 lakh
are programmed for period 2015-16.

Sugarcane (In 000 MT)

1,073
1,500
1,000
500
0

1,274
1,069

903
646

885

952

937

490

Potato: It is the most essential vegetable for the people of Odisha. The vegetable is being
cultivated over about 15, 000 Ha. with production of about 2.5 MT per annum. This
contributes 25% of the states requirement. To make the state self-sufficient, government has
decided to launch the State Potato Mission for production, storage and distribution of potato
in the state. A sum of 5000 lakh has been provided for implementation of the scheme in the
State.
120
100
80
60
40
20
0

Potato (In 000 MT)

Oilseeds: For implementation of the mini mission on oilseed a total sum of 188.96 lakh
have been utilized during 2014-15 (till Dec, 2014) against allocated total of 451.70 lakh.
For the same project, a total amount of 1509.34 lakh for the period of 2015-16. In order to
make quality certified seeds of oilseed crop available to farmers on subsidized rate and
105.60 lakh subsidy has been utilized till Dec, 2014. During 2015-16, the program plans to
provide 40, 200 quintals of certified seeds at the subsidized amount of 482.40 lakh.

Oil Seeds (In 000 MT)

300
200
100
0

2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14

Government Initiatives:
Technological

Increasing seed replacement rate(SRR)

Increasing seed replacement rate through massive production of quality seeds under seed
village schemes and in departmental farms. Private sector is also encouraged to promote more
seeds in state.To meet this objective the government is providing input subsidy on quality
seeds.

Promotion of system of rice intensification(SRI) method

Objective to enhance rice production by increasing water use and efficiency and economizing
use of quality seeds and other inputs. It is programmed to promote SRI in 20,000 hectares
with an estimated cost of 1000 lakhs.

Farm Mechanization
Lead to reduction in cost of production and substantial increase in productivity. Taking into
consideration the popular demand by farmers it has been programmed to popularize 5465
tractors, 12340 power tillers, 620 reapers, 700 transplanters, 5000 rotavators, 2400 power
threshers, 620 combine harvestors, 7415
power operated implements and 23000
manual/bullock drawn implements. Subsidy extended is INR 24000 lakhs. Objective To
reduce labour shortage and reduce drudgery as well as cost of cultivation.

Soil testing and quality control laboratories

An important technical support service to the farmers. There are 27 soil testing laboratories in
the state and 11 mobile soil testing laboratories are operational. Provision to establish 3 more
static and11 mobile laboratories plus 34 mini STLs enhancing the analysis capacity to 6.20
lakh samples per annum.

E-pest surveillance and pest management

Take up pest surveillance (fixed /roving) survey for major pests of paddy and non paddy
crops. Successful implementation of this project minimized losses to a great extent.

Management of acidic soil

Soil with high acidity hampers crop production. Hence the state govt. is taking steps to treat
acidic soils by application of paper mill sludge/liming over an area of 18180 hectares.

Seed testing laboratory

Testing of seed samples for certification and validation/revalidation of foundation and
certification of seeds. To maintain supply of quality seeds to farmers and maintaining the
quality of seeds to preserve local variety for further research.

Irrigation

Increasing irrigation potential by enhancing captive irrigation facilities and exploitation of

groundwater potential through STWs, MTWs, Dug wells, Deep borewells, and river lifts.
Special emphasis is on providing irrigation to hard rock areas to the state by installation of
deep borewells in clusters of 4 or more.
Financial

Agricultural Promotion and Investment Corporation Ltd.(APICOL)

Engaged in promotion of commercial agri enterprises including agro based and food
processing industries in the state. The corporation acts as channelizing agency for release of
subsidy under various schemes of state government.
Commercial agri- enterprises(CAE)/ Agro service centers(ASC)- Establishment of CAE a
prime mover for self-employment as well as indirect employment opportunities
APEDA- APICOL is acting as a virtual office for APEDA. The goal is to maximize foreign
exchange earnings through increased agro exports, to provide better income to farmers
through higher unit value realization and to create employment opportunities in rural areas by
encouraging value added exports of farm produce. It also has sanctioned financial assistance
for setting up of an integrated post harvest pack house for fresh fruits and vegetables in
Bolangir, Odisha
SFAC(Small farmers agriculture business consortium)- APICOL is acting as SFAC which
provides venture capitalist assistance to promote investment in agri business projects by way
of soft loan to supplement the financial gap.

Odisha Agro Industries Corporation (OAIC)

Engaged in marketing of various agricultural inputs including agricultural
machineries/equipment/implements through its network. Corporation also executes STWs,
BWs and RLIPs for the farming community. It also provides inputs such as fertilizers,
pesticides and cattle/poultry feed to the farmers.

Odisha State Seeds Corporation (OSSC)

The Odisha State Seeds Corporation is the designated Nodal agency for production,
procurement and supply of quality seeds to the farmers of the state. The certification of the
seeds produced in the State are certified by The Odisha State Seeds and Organic Products
Certification Agency (OSSOPCA). The OSSC has been implementing the Seed Village
Program as Mo Bihana Yojana for production of certified paddy and non-paddy seeds
through farmers. Incentives at various rates are given to the seed growers under various
schemes for taking up production of certified seeds. The seeds produced in farmers fields are
processed by the OSSC/ Government Processing Plants and through designated private
processors and are procured by the OSSC Ltd. after certification by the OSSOPCA. Besides
procuring seeds from the farmers under the Seed Village Program, the OSSC procures
certified seeds from the OUAT, MOU farms, the National Seeds Corporation and other
National / State Public Sector agencies for meeting farmers need for quality seeds.
Subsidy under agricultural policy (Capital Investment)
To provide self-employment and indirect employment opportunities, subsidy is being
provided for establishment of Commercial Agri-Enterprises under State Agriculture policy
2013. Capital Investment Subsidy @ 40% subject to a maximum limit of ` 50.00 lakh (50%
limited to Rs 50.00 lakh for SC / ST /Women graduates of agriculture and allied sciences) is
provided on a back-ended basis for such ventures.

Policy measures

Biju Krushak Kalyan Yojana (BKKY)

To provide health insurance to the farming community , State Government had launched
this scheme in 2013-14.Under this scheme , health insurance coverage is being provided
for up to 5 members of a farmers family limited up to Rs 1 lakh per year.52 lakh farm
families were covered during the year 2013-14 and about 55 lakhs families covered so far
in 2014-15.About 84 thousand farm families have been benefited under this scheme and
health insurance claims worth Rs 44494 lakh have been settled so far.

Rashtriya Krishi Vikas Yojana (RKVY)

Introduced by the Government of India in the year 2007-08, the RKVY scheme aims to
provide incentives to the States for increasing expenditure in the agriculture and allied
sectors with an objective to sustain a growth rate of 4%.For States to become eligible the
average percentage share of expenditure in agriculture should be at least equal to the base
line level. During 2014-15, Govt. of India had released Rs 48207 lakh which includes
29093 lakh under normal RKVY and 21320 lakh for 3 sub-schemes namely Bringing
Green Revolution to Eastern India (BGREI), Vegetable Initiative for Urban Cluster
(VIUC), and National Mission for Protein Supplements (NMPS) of RKVY.

Bringing Green Revolution to Eastern India (BGREI)

Bringing Green Revolution to Eastern India (BGREI) was launched during the financial
year 2011-12 to increase the production of rice crop by increasing the productivity. This is
a sub scheme of the RKVY scheme which is being implemented in 16 districts of the state
with provision of Rs 18400 lakh during 2014-15. Under this program, 94,702 hectares of
demonstrations were conducted in different rice ecosystems of the State.

Vegetable Initiative for Urban Cluster

The State Government introduced this scheme during 2011-12 to increase the production
of vegetables in the nearby areas of State capital to meet the vegetable requirement of the
city. Considering the encouraging response from the farmers, the area of operation has
been expanded to cover villages located within a radius of 100 KM from the State Capital
covering 5 districts namely Puri, Khurda, Nayagarh, Cuttack & Jajpur.

National Food Security Mission (NFSM)

National Food and Security Mission (NFSM) has been launched from 2007-08 in the
State with the objective of increasing the production of rice and pulses through area
expansion and enhancement of productivity in a sustainable manner in the identified
districts. NFSM-Rice was implemented in 15 districts of Orissa and NFSM-Pulses was
implemented in all 30 districts of the state from the financial year 2011-12.

National Mission for Sustainable Agriculture (NMSA)

National Mission for Sustainable Agriculture (NMSA) are being implemented in the State
from financial year 2014-15 aiming at enhancing agricultural productivity especially in rainfed

areas focusing on integrated farming, water use efficiency, soil health management and
synergizing resource conservation. There are four major components under NMSA namely

Soil Health Management (SHM), On Farm Water Management (OFWM), Rain-fed Area
Development (RAD) and Climate Change and Sustainable Agriculture Monitoring,
Modelling Networking (CCSAMMN).

National Mission on Agriculture Extension and Technology (NMAET)

NMAET is a centrally sponsored scheme that has been implemented in the State from the
financial year 2014-15. The objective of the Scheme is to make the extension system
farmer-driven and farmer-accountable by way of new institutional arrangements for
technology dissemination. It aims to restructure and strengthen agricultural extension to
enable delivery of appropriate technology and improved agronomic practices to farmers.
This includes four Sub-Missions; Sub Mission on Agriculture Mechanisation (SMAM),
Sub-Mission on Agriculture Extension (SMAE), Sub- Mission on Seed and Planting
Material (SMSP) and Sub-Mission on Plant Protection and Plant Quarantine (SMPP).

Shortcomings
Despite several policy measures Odisha remains one of the most agriculturally backward states in
India. Agricultural productivity as well as awareness remains quite low still.
Poor land utilization and soil quality- Over the period of ten years between 1999-2000 to
2009-2010 the total cultivable area has reportedly gone down from about 72 lakh hectare to
68 lakh hectare with net sown area reducing from 61 ha to 56 ha. About two thirds of
cultivable land is acidic with varying degree of acidity. Present infrastructure for soil testing
is inadequate and farmers dont have a habit to undertake soil testing.
Low level of crop diversity- High crop diversity insures the farmers against risk of weather
changes and pest outbreaks. The diversification is suffering from inappropriate market
linkages and lack of infrastructure
Low level of farm mechanization (Insignificant use of power)- Intensive farm mechanization
needs to be supported by adequate supply of power and other infrastructure. Low level of
consumption of power indicates low level of mechanization.
Low level of irrigation- The extent of usage of fertilizers, rainfall, per cent gross cropped area
irrigated and size of operational holding have a positive bearing on the yield of crops.
Compared with all India averages, progress in extending areas under irrigation in the State
has been faster. During 1999-2000, 29.5 per cent of areas under all crops in the State were
irrigated which increased to 35.0 per cent by 2008-09. The respective all-India levels were,
however, much higher at 40.8 per cent and 45.3 per cent
Low fertilizer usage- Fertilizer consumption in the State, in terms of kilogram per hectare
during 2008-09 was very low 61.6 kg as against 128.6 kgs at all-India level i.e. Odishas per
hectare consumption of fertilizer is less than 50 percent of all India consumption. Similarly,
pesticide consumption in the State is much lower than the all-India levels.
Inadequate agriculture financing- The Credit deposit ratio of commercial banks in Odisha
was lower than the all India level position. There is skewed credit flow to the agricultural
sector in state. In Odisha, the share of agriculture in the total credit deployed recorded an
increase to 16.5 per cent from 14.8 per cent as at end-March 2010 while the share of industry
stood highest at 32.7 per cent followed by personal loans (23.8 per cent) during the same
period. The flow of credit to agricultural sector remained highly volatile in the last decade.