Reserve Bank of India, Mumbai
JEL Classification: E01
The contribution of the agricultural sector to GDP is estimated in terms of GVA using the production approach. The estimation of GVA involves evaluation of the products and by-products and ancillary activities at the prices received by the producers and deducting from them the value of inputs of raw materials and services consumed in the process of production at purchasers’ prices. The current method of obtaining the costs of inputs appear to be affected by older norms and weaknesses in capturing the input cost structure through the Cost of Cultivation Studies. In order to overcome this problem, it is suggested that detail annual surveys on the lines of Annual Survey of Industries (ASI) may be conducted in the agricultural sector also. Annual Survey of Agricultural and Livestock (ASAL), can provide us with the necessary data for detailed analysis of input output structure. New norms for estimating feed of livestock can be formed. Energy intensity of agriculture can also be estimated properly. It can provide the background for estimating the quarterly distribution of value added in the agricultural sector using the stable input output relationship.
