An approach to estimate gross value added of major crops at current prices covered under cost of cultivation study: Year 2016-17

Agriculture is a key sector in India for both livelihood and national income purposes. It contributes about 17% of India’s national income and the primary source of livelihood for more than 50 per cent of India’s population. Due to various Agro-climatic conditions namely soil types, rainfall, temperature and water availability which influence the types of vegetation, India’s agriculture is composed of variety of crops. Though National Statistical Office publishes crop-wise value of output, the value of crop-wise gross value addition has not been estimated yet. To make the Agriculture sector as growth engine of economy, policy interventions are required and these interventions could be more effective only if these are based on its actual value addition more specifically crop-wise gross value addition in the economy. In this paper authors have first attempted to estimate gross value added of major crops for the year 2016-17 using Cost of Cultivation Study. Then the authors have compared the GVA per hectare for major crops covered under Cost of Cultivation Study. Wide variation in the State-wise and crop-wise variation in GVA per hectare is expected to help identifying crops which might be more useful in a particular State for improving farmers’ income and improve GDP of India.