Why in News?

New data from the Ministry of Statistics and Programme Implementation (MoSPI) reveals shifting food habits and consumption patterns, as farmers adapt by producing more high-value crops.

Over the past decade, the Gross Value of Output (GVO) has seen the highest rise in fruits like strawberries and pomegranates, and vegetables like parwal (pointed gourd) and mushrooms.

Gross Value of Output, or GVO, is a measure of production that refers to the total value of the items produced before subtracting the value of inputs used in production.

What’s in Today’s Article?

• Agriculture Output Report
• Key Highlights of the Agriculture Output Report
• Agriculture Output Report - Analysis

Agriculture Output Report

• The National Statistics Office (NSO), under the Ministry of Statistics and Programme Implementation (MoSPI), has released the annual “Statistical Report on Value of Output from Agriculture and Allied Sectors (2011-12 to 2023-24)”.
• The report provides comprehensive data on the value of output from crops, livestock, forestry & logging, and fishing & aquaculture, at both current and constant (2011–12) prices.

Key Highlights of the Agriculture Output Report

• Reflecting evolving food habits, farmers are increasingly shifting from traditional staples to high-value crops.
• New data highlights a significant transformation in agricultural output trends over the past decade.
• Robust Growth in Agriculture GVA at Current Prices
  • The Gross Value Added (GVA) of agriculture and allied sectors at current prices grew by ~225%, rising from ₹1,502 thousand crore in 2011–12 to ₹4,878 thousand crore in 2023–24.
• Steady Rise in GVO at Constant Prices
  • The GVO at constant (2011–12) prices increased by about 54.6%, from ₹1,908 thousand crore in 2011–12 to ₹2,949 thousand crore in 2023–24, indicating consistent real growth in the sector.
• Sharp Rise in High-Value Fruits and Vegetables
  • Between 2011–12 and 2023–24, the Gross Value of Output (GVO) of certain fruits and vegetables surged dramatically:
    • Strawberries: GVO rose over 40 times to ₹55.4 crore (constant prices), and nearly 80 times to ₹103.27 crore (current prices).
    • Parmal (Parwal): Increased 17-fold to ₹789 crore.
    • Pumpkin: Rose nearly 10 times to ₹2,449 crore.
    • Pomegranate: Grew over 4 times to ₹9,231 crore.
    • Mushrooms: Jumped 3.5 times to ₹1,704 crore.
• Meat Gains, Cereals Lose Share in Agri Output
• Meat: Its share in the GVO of agriculture and allied sectors rose from 5% in 2011–12 to 7.5% in 2023–24.
• Cereals: Declined from 17.6% to 14.5% over the same period, indicating a diversification away from staple grains.
• Spices Also on the Rise
  • Improved processing and growing demand boosted the GVO of spices, especially dry ginger, which surged by 285% to ₹11,004 crore.
• Rising Incomes Drive Shift Toward Animal and Fruit-Based Diets
  • As incomes increased, the share of meat in agriculture GVO rose from 5% to 7.5% between 2011–12 and 2023–24.
  • However, the 131% growth in meat GVO was still lower than that of strawberries and other high-value crops.
• Modest Rise in Fruit Consumption Despite Output Growth
  • Despite production growth, fruit consumption as a share of Monthly Per Capita Consumption Expenditure (MPCE) remained low:
    • Rural MPCE: Rose from 2.25% to 2.66%
    • Urban MPCE: Slight dip from 2.64% to 2.61%
  • Yet, more rural households are now consuming fruits: From 63.8% in 2011–12 to 90.3% in 2022–23, especially among the bottom 20% income group.
• Cereals See Decline in Consumption and Output Share
  • Reflecting changing dietary patterns:
    • Urban MPCE on cereals fell from 6.61% to 3.74%
    • Rural MPCE on cereals fell from 10.69% to 4.97%
    • GVO share of cereals dropped from 17.6% to 14.5%

Agriculture Output Report - Analysis

• Structural Shift in Agriculture
  • MoSPI data indicates a shift from cereals to fruits, vegetables, spices, and meat, driven by:
    • Technological advancements
    • Changing consumer preferences
    • Policy focus on nutrition and exports
    • Expanding market opportunities
• Engel’s Law in Action
  • Engel's Law states that as a household's income increases, the proportion of income spent on food decreases, while the proportion spent on other goods and services, like luxury items, increases. 
  • Consistent with Engel’s Law, food’s share in MPCE declined as incomes rose:
    • Rural areas: From 52.90% (2011–12) to 47.04% (2023–24)
    • Urban areas: From 42.62% to 39.68%