Agriculture - Post Harvest Processing & Value Chain

Executive Summary

Vision 2029-Sector papers

Andhra Pradesh`s current national status:

Production:

  • 1st position: Brackish & freshwater shrimp; eggs; palm oil, chilli, citrus, tomato, tomato, and turmeric.
  • 2nd position: cashew nut, mango; and fresh water fish production.
  • 3rd position: flower production
  • 4th position: meat & banana production

Crop Yield   (kg/ha)
Crop Yield in AP Leading state
Paddy 3094 3952 (Punjab)
Bajra 1663 2057 (Haryana)
Tomato 23700 41530 (HP)
Maize 7012 7012 (AP)
Mango 7890 66040 (MP)
Source: Agricultural statistics at a glance – GoAP 2013-14

Value addition     (Rs. Lakh)
Commodity Andhra Pradesh 1st state 2nd state
Meat 5000 40,000 (Maharashtra) 37,000 (UP)
Fish 50,000 50,000 (Andhra P) 25000(Maharashtra)
Fruit & Vegetables 12,000 50,000 (Maharashtra) 12,000 (Gujarat)
Milk & milk products 125,000 125000 (Andhra P) 80,000 (Maharashtra)
Grain milling, starch, & starch product 75,000 200000 (Maharashtra) 125000 (Telangana)
Source: ASI 2012-2013

Under Vision 2029, it is envisioned to position Andhra Pradesh as a leading state in agri-business and agro- processing to enable value driven growth, local job creation and market oriented agribusiness operations, which will ensure enhanced value generation per capita and per farm. With regard to the larger vision of the state, the two sub-sectors of the agriculture and allied sectors agri-business and fisheries has been identified as growth engines to drive the state in achieving the vision. The Sector Paper has critically identified the challenges faced by the sector; and in response to these challenges it has chalked out the theme based strategic roadmaps. Further, the paper also has listed down strategy specific and action oriented KPIs (Key Performance Indicators) to be adopted in short, medium and long term to achieve the Vision.

In as-is assessment, it is found that Andhra Pradesh is a leading and significant producer of many crops at national level. However, challenges majorly exist in productivity, quality of soil health, farm machinery and inputs, technologies, skill of human resources, market integration, and post-harvest of produces.

  • The Post-harvest losses ,during the year 2014-15, in the Agriculture sub-sector was Rs. 1983 Crores whereas 671 Crores was the losses in Fisheries sector. These losses occur both at storage and farm level; and the losses in the farm level is higher. Similarly, the cumulative percentages of post-harvest losses occurred in Fruits & vegetables is 5.8 to 18%, Milk is 0.8%, Fisheries is 2.9%, Meat is 2.3%, and Poultry is 3.7%.
  • Despite huge opportunities, in AP the scale of value addition and processing is low and it is yet to realise its full potential. In fisheries, for example, AP contributes 40% of India`s export but processed fish products is 15%. Similarly, less than 2.5% productions are processed, except fisheries and milk. Also, the number of Food Processing Units is less, and it`s share in India`s total FPU for Meat is 5%, Fish is 15%, and Fruit& Vegetable is 12%.
  • Quality storage facilities are inadequate across the State. Logistics supports have not developed in accordance with the requirement.
  • Adequate number of certified/skilled human resources to operate new technology, innovative methods, and agro-processing is absent. Sufficient number of quality training centres to provide certified skills across the state is lacking.
  • High risks due to natural calamities-droughts, cyclones, floods, and climate change:
    During 1993 to 2003, 97% of the mandals across all districts had experienced drought at least once. In the past 40 years due to 26 instances of flood and 25 cyclones, 18.23 million hectares of agricultural area got affected and State incurred losses Rs. 73,651 Crores. Out of which, Rs. 33,138 Crores was the loss due to the cyclones. Due to very high ground water usage in the state there is very limited scope for further exploitation of ground water. In Chittoor and Anantapur districts have been recorded as more than 70% on all usage stage of ground water development. 90 Mandals have been classified as semi critical, critical, and over exploited.

The potential of Andhra Pradesh to position itself as a leading in agri-business is not achievable without shifting from the traditional subsistence era to an ‘era of agricultural enterprises’. To achieve this sector papers suggests six strategies:


1. Output improvement:

To improve the production of the sector it is suggested to adopt seed replacement and improved varieties of seeds. Secondly, to increase production and yield adopt new technology such as System of Rice Intensification (SRI), protected cultivation, precision farming, and state-of-the art, etc. Thirdly, it is suggested to map the soil health and conduct soil testing every year. It is targeted to increase the total area covered by micro nutrients to 100% by 2029. Fourthly, to meet the requirement at critical stages of crop growth to improve yield increase the area under irrigation. It is targeted to bring 46.05 Lac Ha, 21.18 lac Ha, and 20.5 under Surface water, Ground water, and Net area irrigated respectively. Fifth, diversification of crops would increase the yield. It has sought to diversify crops by targeting 5% of the additional area annually.


2.Increasing efficiency:

Second, to increase the efficiency of the Agri & allied sectors by improving mechanisation and of skilling of labour. It is targeted to ensure skill up-gradation to 50% of the total farm labourers by 2029. Water use efficiency of water is sought to be increased by promoting micro-irrigation, and it is aimed to increase it up to 60%. Have electronic integration and computerization of market yards. Encourage PPP mode in agro-processing, cold chain development, and other infrastructure developments.


3.Waste Minimization

Third, to reduce agricultural and horticultural post-harvest losses to 2 to 5% promote mechanized harvesting, collection and threshing to reduce overall agriculture produce loss at farm. Additionally develop pre-cooling facilities and emphasize crop-wise measures to minimize harvesting and post-harvest losses.


4.Value Enhancement:

Fourth, to enhance value of all Agri and allied produce, enhance standardization, capture value at farm level and enhance marketability, commercialize and adopt crop diversification. Furthermore, focus on enhancing the value of Agri-produce through geographical indicators and creation of branding. This could lead to 50% growth in exports of agricultural commodities and value added products by 2019, if focussed on internationally competitive crops and export oriented crops.


5.Government Intervention, Risk Mitigations, etc.:

Fifth, to strengthen weather forecasting to mitigate climatic risks and disasters, develop network of crop advisories and meteorological station network, map the areas that are prone to drought, flood and other extreme climatic conditions and plan the crops and varieties suitable to those areas. Also, develop policies for insurance of crops covering localized risks, post-harvest risks, standing crop risks, and market risks thorough specific schemes.


6.Institutions, Governance, and Institutional credit:

This section presents an analysis of the interventions/activities of the existing line departments and other agencies, and it finds out the possible convergence. Secondly, it proposes new institutions to strengthen the Agricultural marketing and co-operation department for Andhra Pradesh.


Key Target Numbers:

A) No. 1 State in agricultural productivity.
  • Best in the country in Total food grain, Rice and Groundnut productivity by 2029.
  • Best in Coarse cereals, Pulses and Maize productivity among the Indian States by 2019-20 and best among the BRICS countries by 2029.
Food grain productivity (kg/ha) 2015 2019 2022 2029
2641 2732 3854 4409

B) No. 1 in milk, meat & fisheries.
By 2020, No.1 in the country in production of:
  • Milk (Currently 2nd in the country)
  • Eggs (Currently 2nd in the country)
  • Meat (Currently 2nd in the country)
  • Fisheries – Aqua Hub of the world
Milk production (`000 MT) 2015 2019 2022 2029
9083 12000 18000 24194

C) Net Irrigated Area
Net irrigated area (Lakh Ha) 2015 2019 2022 2029
30 35 40 51

B) Food processing hub in agricultural produce processed
By 2029, Extent of Food processing targets in:
  • Fruits and vegetables – From 2.20% to 20%
  • Milk – From 40% to 70%
  • Meat and Poultry – From 1% to 20%
  • Fisheries – From 12% to 40%

Feedback

3/9/2017

VishnuReddy P

The State of Andhra Pradesh was formed on 1st November, 1956 by merging the nine districts of Telangana region of Hyderabad State, with those of Andhra State. Andhra state was itself formed on 1st October 1953 by partitioning the composite Madras State.