Course: J&K Economy Instructor: Dr.

Hamid Mir
Course Code: ECO1530-DCE Semester-3rd
Tutorial: 1
Unit-3: Agriculture Industry and Trade

1. Agriculture Sector in J&K State

2. Horticulture Sector in J&K State

1. Agriculture in J&K state

Agriculture plays a very prominent role for development of economy of J&K State. Around
70% of the population in the State gets livelihood directly or indirectly from the Agriculture
and allied Sectors.
Growth in Agriculture
Around 70% of the population of the State resides in the rural areas and is directly or
indirectly dependent upon this sector for their livelihood and employability. Despite its
importance for ensuring inclusive growth and providing Food security, the contribution of
Agriculture towards Gross State Domestic Product (GSDP), is gradually decreasing which is
an indication of development of the economy.
The decline in growth rate is attributed to low productivity, lack of adequate agricultural
research extension from lab to land, low seed replacement rate, yield stagnation, lack of
adequate irrigation facility (58% of the net area sown is rain fed) and small size of holdings.
Roughly 94% of the holdings fall in the size class of less than 2 hectares and around 81.5%,
in less than 1 hectare.
According to the 8th Agricultural Census report (2005-06), released by the Revenue
Department, J&K, the agriculture structure of the state is portrayed as under:-
1. 8th Agricultural Census depicts that the marginal holdings shared around 81.5% of
the total number of operational holdings with a share of 44.06% in the total operated
area.
2. 14.43 lakh operational holders were operating on 9.62 lakh hectares of land in 2000-
This number has fallen to 13.78 lakh operational holders operating on 9.23 lakh
hectares registering a decrease of 1.5 % in operational holders and 0.041% in operated
area as per 8th Agricultural Census (2005-06).
 3. Average size of operational holding at state level stood at 0.67 hectares (2005-06)
which reflects no change in the holding size in comparison to the holding size in 7th
Agricultural census(2000-01).
4. In the composition of operational holdings (8th Agricultural Census), share of
Scheduled Castes, Scheduled Tribes, others and Institutional Holdings is 7.10%,
13.38%, 79.32% and 0.83% respectively. Similarly in area operated 8.03%, 15.60%,
75.68% and 1.16% share is occupied by SCs, STs, Others and Institutional Holdings
respectively. In percentage terms, the number of holdings registered increase in
respect of all groups, highest increase has been recorded by STs and lowest 0.02% by
SCs. Except SC group area operated by all other groups recorded increase and
regarding SC, the area operated has fallen by 0.02% as per 8th Agriculture Census in
comparison to 7th Agriculture Census.
5. Marginal size class comprises of 11.23 lakh operational holders with operated area
of 4.06 lakh hectares in 2005-06, registering a decrease of 4.43% & 5.36%
respectively in number of holdings and area. The small size class comprises of 1.69
lakh operational holders with operated area of 2.37 lakh hectars, registering a decrease
of 17.88% & 5.20% respectively in number of holdings and area operated. The semi-
medium size class comprises of 0.71 lakh operational holders operating on 1.93 lakhs
hectares of land registering a decrease of 6.58% and 3.5 % respectively in number of
holdings and area operated. The medium size class comprises of 0.13 lakh
operational holders operating on 0.74 lakh hectares, registering an increase of 7.7 %
and 7.25% respectively in number of holders and area operated. Finally, the large
size class comprises of 0.006 lakh operational holders operating on 0.12 lakh
hectares, registering a decrease of 69% in number of operational holdings and same
area as compared to the previous (7th) Agricultural Census 2000-01.
The National Sample Survey Office (NSSO), MOSPI, Govt. Of India has also launched 70th
round of survey, earmarked on land and livestock holdings, debit and investment and
situation assessment of Agriculture holdings from January, 2013 in collaboration with State
Govts. to generate basic quantitative information on the Agrarian structure both at country as
well as at State levels, which is relevant to land Policy and decisions making at various levels
so that problems of Agriculture could be addressed in the right perspective. It will now be
well recognized that faster growth of Agriculture makes overall growth process more
inclusive.
Nearly 93.06% of the total sown area was irrigated under Rice during 2013-14, Wheat had a
share of 33.2% among the irrigated crops. Similarly, share of Maize was 7% during 2013.
Green Revolution in 1967-68 was a turning point which led to bumper harvests of major
crops especially wheat and rice taking advantage of dwarf genes. Increase in food-grains,
production contributed to the upliftment of rural population and overall rural development.
However, of late very disturbing trends have started emerging in the farming sector; the
farmers are losing interest as they find agriculture less remunerative, too small to sustain a
family. Therefore, profitability and sustainability of agriculture is a must. There is need to
create general awareness about the knowledge, skills and techniques to enhance production
productivity and quality of food-grains so that the farmers could earn a sustainable income
for survival.
The Agriculture Sector in J&K faces many problems such as low growth, low yields, limited
scope of extending cultivativable area, land degradation, hilly terrain, small and fragmented
land holdings and so on. Meanwhile, potentials, limitations and strategy related issues are
given as under:-

Organic Basmati Rice, Rajmash, off-season vegetables, potatoes, aromatic &

medicinal plants,
Virus free potato seeds for all seasons,
Development of commercial floriculture, Production of virus free quality seeds for
flowers and vegetables, aromatic & medicinal plants,
Mushrooms round the year, honey and honey by-products, fodder intensification, etc,
Wide range of flora available to boost bee keeping,
Boost to Quality Saffron Production,
Jetropha (Biofuel) cultivation on waste lands and rain fed areas of Jammu region
under NWDPRA

Limitations/Drawbacks in Agriculture
Hilly Terrain,
Small and fragmented land holdings,
Fragile Soil in hilly areas susceptible to soil erosion,
Limits to mechanized farming and transportation of products,
Extreme limits to irrigation of cultivated land,
Single Cropping season in temperate / high altitude areas,
Inadequate and unorganized marketing infrastructure,
 Distant markets for export outside the State.

Strategy

Timely sowing of treated seeds of rice, maize etc.,

Timely arrangements and easy access of inputs (seeds, fertilizers, technology, etc.),
Ensuring supplies of Quality Inputs & Services, Stress on Soil & Water Management,
Augmenting seed/grain storage capacity of farmers,
Gearing up Extension Network & Capacity building of farmers in quality seed
production,
Diversification in cropping system to:-
(a) Reduce pressure on water resources
(b) Provide alternatives for marketable crop products and higher income
(c) Generate more employment opportunities through crops having scope in value
addition such as MAPs, Bamboo, Flowers, Fruits, Sericulture, etc.
Augmenting credit through KCCs
Intensive and extensive research development in the farm business management must
be accelerated
Major Challenges and Priorities
The main challenges are shrinking land base, depletion of water resources, adverse impact of
climate change, shortage of Farm Labour as dignity of labour vanishing, Increasing costs of
inputs, uncertainties of weather, soil erosion, and volatility in national and international
markets.
Key Drivers of Growth
1. Availability and dissemination of result oriented technologies which depend on
quality of research and extent of skill development.
2. Adequate investment on Agriculture and strengthen of infrastructure, improve
functioning of markets besides optimum utilization of scare economic resources.
3. Governance in terms of institutions that make better delivery of services like credit,
quality inputs, like seeds, fertilizers, farm machinery etc. For addressing food security
and sustainability extension of green revolution to low productivity areas, besides
focusing on water stress zones is emphasized during 12th Five Year Plan period.
4. Modernization and computerization of land in a time bound manner.
 5. Leveraging the refined private investment as well as Policies for making markets
more efficient and competitive.
6. Agriculture Research and Education: For providing dent to the poverty and
reducing hunger, the Agriculture Research play a crucial role and shall be addressed
in a big way.
7. Providing of quality seed: The ratio of quality seed to total seed use by the farmers is
still much below the norm and there is considerable scope to raise crop productivity
by raising this ratio during 12th Five Year Plan period.
8. The importance of PPP in Agriculture in extension will also explored besides
introducing small size of machine for Agriculture operation in view of small size of
holding in the State.

2. Horticulture Sector in J&K State

J&K State is well known for its horticultural produce both in India and abroad. The state
offers good scope for cultivation of horticultural crops, covering a variety of temperate fruits
like apple, pear, peach, plum, apricot, almond, cherry and sub tropical fruits like mango,
guava, citrus litchi, phalsa and Berete. Besides, medicinal and aromatic plants, floriculture,
mushroom, plantation crops and vegetables are cultivated in the state. Apart from this, well
known spices like saffron and black Zeera are also cultivated in some pockets of the state.
As a result, there is a perceptible change in the concept of horticulture development in the
state. There are around 7 lakh families comprising of about 33 lakh people which are directly
or indirectly associated with horticulture. Horticulture development is one of the thrust areas
in agriculture and a number of programmes have been implemented in the past, resulting in
the generation of higher incomes in the rural areas, thereby improving the quality of life in
villages.
The growth of horticulture sector can be attributed to various initiatives taken by the GoI and
State Govt; towards market interventions viz. establishment of fruit mandies, technological
support, awareness options, publicity inputs, research extension etc.
Apple is the most important fruit. As per the horticulture census 1999-2000, about 55% of the
area is covered under apple. It is also important in terms of production and provide the
maximum marketable surplus. About 30% of A grade, 40% of B grade and 30% of C grade
of prefalls and culled apples account for substantial quantum of around 50 thousand tonnes
which needs to be exploited as raw material for processing industry. However during the
current year seasonal variations coupled with floods of September 2014 resulted in loss to the
horticultural industry. However, the increased production yielded some good results and our
export worth Rs. 4500.00 crore is expected during 2014-15 as against Rs. 5000.00 crore
during 2013-14.
Food processing industry offers tremendous opportunity for commercial exploitation of
horticulture of the State but commercial processing is around 1% only due to lack of post
harvesting and processing facilities as well as unscientific packaging. Therefore,
opportunities are open for exploiting the potential under processing, with individual, joint
venture and Government efforts.
Area under Fruits in J&K State has increased from 2.95 lakh hectares in 2007-08 to 3.60 lakh
hectares in 2014-15 (estimated). The production was expected to increase from 17.13 lakh
MTs in 2009-10 to 22.76 lakh MTs in 2014-15 which is now unlikely to be achieved due to
unexpected rains and floods of September, 2014.
Species wise Area under Horticulture

Looking to the specie-wise details of area figures under fruit for the year 2013-14, it is
observed that largest area of 45.34% (161364 hectares) is occupied by apple out of total area
of 355921 hectares under fruit. Walnut is the next major fruit occupying 26.86% in the
overall area under fruit.

Production
In Jammu and Kashmir State especially in Kashmir Division, horticulture plays a significant
role in contributing to the development of the economy of the state. As per estimates, over 6
lac families are actively involved in horticulture sector. This sector is one of the most
important employment generating sectors in the state. Year after year, there is a significant
increase in area and production under horticulture crops. It is believed that production is
registered without proper crop-cut estimation therefore the fluctuations in production figures
need reconciliation.
The overall production of fruit for the year 2014-15 was estimated at 13.54 Lac MTs, as there
has been some loss to the Horticulture crop due to low temperature caused due to unexpected
rains followed by flood in some areas of the State.

Export of fruit
Export of fruit from outside State, has occupied a prominent place in trade of the State but it
is showing fluctuating trend over the years. The total quantity exported for the year 2013-14
was 10.10 lakh MTs against 6.8 lakh MTs exported for the current financial year 2014-15
(ending November, 2014).
Although, the production under horticulture sector is increasing year by year but it further
needs to be given focused attention to register significant growth in the export of horticulture
produce outside the State. The reason for low growth in export of fruits outside the State is
introduction of Market Intervention Scheme (MIS) under which C grade apples are
procured at a support price of Rs.6 per kg. For processing into juice concentrates in the
locally established juice processing units. Secondly, India is also importing fruits from
foreign countries as free trade policy which is in force at the country level.

Foreign Exchange Earnings

The Government is making all efforts to promote exports from Jammu and Kashmir State.
States fruit especially dry fruits is also exported to other countries and in turn earns
substantial foreign exchange. Foreign exchange earned on account of export of dry fruit viz;
Almond and Walnut (in shell and kernel) during the year 2013-14 was Rs 365.25 crore.

Import of Fruits and Vegetables

Fruit
Besides, producing fruit in good quantity, the state also imports fruit to supplement the
growing demand on this account. The import of fruits has decreased from 2.35LMTs (2013-
14) to 1.86 LMTs (2014-15) ending November, 2014.
Vegetables
Vegetables play a vital role to supply adequate quantity of nutrition in human diet. The per
capita availability is less than the prescribed requirement of 200 gms per person per day. To
address the excess demand the vegetables are imported from outside J&K. 1.99 lakh metric
tones of vegetables have been imported ending Nov., 2014.
Developmental Initiatives
Horticulture Mission for North Eastern and Himalayan States was one of the initiatives upto
last financial year which had four Mini Missions but the Government of India has now
restructured the scheme and integrated approach has been adopted for the development of
horticulture. The new scheme known as Mission for Integrated Development of Horticulture
(MIDH) has been launched during 2014-15 this is 100% Centrally Sponsored Scheme and the
financial progress achieved at State level over the years.
During 2014-15, an allocation of Rs 6000.00 lakh was earmarked for the scheme against
which Rs 1500.00 lakh have been released and expenditure ending Jan. 2015 has actually
arrived at an amount of Rs. 1416.76 lakhs, and it is expected that full allocated amount will
be utilized during the reference year. Tangible results are expected during 2014-15 under the
various sectors of development implementing various interventions of beneficiary oriented
schemes to raise the standards of livelihood parameters.

Post Harvest Management (PHM)

Table No 3 :Financial Performance under CSS (Rs in lakhs)
Year Approved Outlay Funds released Actual Expenditure
2012-13 3500 1825 1470
2013-14 3000 2900.16 2133.5
2014-15 6000 1500 1416.76
(ending Jan, 2015)
Source: Economic Survey, 2014-15

The horticulture crops like fruit, vegetables and flowers are perishable in nature and require
special attention in their harvesting, handling, packaging, storage and processing operations.
It is viewed by experts that 10% losses occur at field level, 5% during transportation, 2%
during packaging, 9% at storage and 4% at processing, aggregating to 30%. Keeping in view
wastages at various stages, the department is concentrating on development of post harvest
infrastructure like cold storage, pack houses and intensive training programme on PHM of
horticulture crops.

Initiatives
1. Organizing Buyer-Seller Meets.
2. Arrangement of Air-cooled Railway coaches for transportation of soft fruits.
3. Introduction of Card Board cartons for packaging of apples
4. Introduction of computerized Data dissemination facility and put-up dynamic web-
site for promotion of Horticulture Marketing
5. Exhibitions in all metros of the Country and other major market promotion events like
Agro Tech, IITF
6. Implementation of APMR Act.
7. Market Intervention Scheme.
8. CA Stores facility at Kolkatta
9. Establishment of one additional terminal market Jablipora in South Kashmir.
 10. 21 F&V Satellite Markets under establishment in the State, out of which 8 Markets
already made functional in Kashmir Division and 3 in Jammu Division.
11. Establishing a Network of:-
10 Satellite Markets established at Kulgam, Shopian, Pulwama, Anantnag Chari
Sharief, Baramulla, Handwara, Kupwara, Batingoo and Udhampur major Fruit
Producing areas of the State.
Terminal Markets established at Sopore, Parimpora & Narwal.
9 Apni Mandi at Pacchar (Pulwama), Nunmai (Kulgam), Mari(Reasi), Mandi
Poonch, Tapyal, Raya Bagala, Dyala Chak(Chadwal), Pouria(Reasi) and
Gharian (Udhampur). Besides two additional Apni Mandies identified viz
Tamotor Modh Kud, Khan Sahib Budgam.
12. Kissan Ghar at Jammu, Delhi and Salt Lake Kolkatta.
13. Multi Commodity Cold Store Kolkatta.
14. The work for establishment of 10 Fruit & Vegetable Markets at Bishnah, Batote,
Akhnoor-ii,Rajouri, Poonch, Doda, Zazna (Ganderbal), Aglar (Shopian), Lehand
Kargil are in progress.
Employment opportunities in the Horticulture Sector
One hectare of land planted with fruit trees provides additional employment for one
thousand man-days, thereby generating employment for over 6 crore man-days by
planting fruit trees on 65000 hectares. Some hands assist the farmers in marketing heir
produces; others help in providing the seeds, the plant materials and insecticides and
chemicals to the farmers so as to ensure that the plants are protected from diseases and
pests; others assist in the picking/harvesting of fruit. The cultivation of fruits is labour
intensive and requires a significantly higher labour force, starting from the stage of
planting the trees, to the point of its marketing. The manpower requirement in the
cultivation and marketing of apples as well as field crops is met by employing paid
workers and even the support of family members.

References
1. Singh, J. 2004. The Economy of Jammu and Kashmir.Radha Krishnan Anand & Co.
Jammu

2. Khan J. I. Jammu and Kashmir Economy (2012). The Directorate of Distance

Education, University of Kashmir. ISSN NO: 978-938209-7-655.
 3. Government of Jammu and Kashmir (2008-09): Performance review of Jammu and
Kashmir. Published by DOES.

4. Government of Jammu and Kashmir (2013-14): Economic survey. Issued by

Directorate of Economics and Statistics department of planning and development.

5. Government of Jammu and Kashmir (2014-15): Economic survey. Issued by

Directorate of Economics and Statistics department of planning and development.

6. Government of Jammu and Kashmir (2005-06): Digest of Statistics. Issued by

Directorate of Economics and Statistics department of planning and development.

7. International Institute for Population (1998-99): National Family Health Survey.

Jammu and Kashmir.

8. Government of India (2005-06), Jammu and Kashmir National Family Health

Survey (NFHS-3), Ministry of Health and Family Welfare International Institute for
Population Sciences, Deonar, Mumbai-400088.

Disclaimer: The material as presented above is for illustration and has been taken from
various sources (both printed and electronic). It as such should not be considered unique and
original.