Performance of Agriculture in Madhya Pradesh

Madhya Pradesh emerged as the state with the highest growth rate in agriculture. Long clubbed with the so-called BIMARU group of poor northern, central and eastern states, MP successfully broke ranks to set a scorching pace of growth, which has been unparalleled in the past quarter-century. Understanding the factors that helped to drive this growth and drawing lessons for other states at similar levels of development is the main objective of this chapter. Madhya Pradesh’s agricultural GDP increased at 8.1% per annum during 2005–06 to 2016–17, surpassing even record holder Gujarat’s 6% agricultural growth in the same period. The last three years have been even more spectacular: agricultural GDP increased at 11.8% per annum. Keeping this background in mind, this chapter has used secondary data published by the government to study the composition, sources and drivers of agriculture growth in Madhya Pradesh and the lessons that can be drawn for developing states. Although MP has recorded a significant decline in poverty rates from 53.6% in 2004–05 to 35.7% in 2011–12, there is still much to be done to improve the livelihood of the rural population. Moreover, MP’s per capita income is low, standing at Rs. 51,798 per annum (FY14 at current prices) as compared to the national annual average income of Rs. 74,380. Although it is much better than that of Bihar (Rs. 31,199) and Uttar Pradesh (Rs. 36,250), it remains way below top-performing states like Sikkim (Rs. 176,491), Maharashtra (Rs. 114,392), Haryana (Rs. 133,427) and Gujarat (Rs. 106,831). Therefore, the study also makes policy suggestions to bolster agricultural growth in MP.