CHAPTER - III DYNAMICS OF GROUNDNUT PRODUCTION IN INDIA, ANDHRA PRADESH AND ANANTAPUR DISTRICT

CHAPTER - III DYNAMICS OF GROUNDNUT PRODUCTION IN INDIA, ANDHRA PRADESH AND ANANTAPUR DISTRICT

3.1. Introduction Out of the nine-oilseed crops grown in India, groundnut accounts for about 45 percent of the total cropped area under oilseeds and 55 percent of the total area under oilseeds production. As such, the edible oil economy in India is primarily depending on groundnut production. Though India leads the world both in area and production of groundnut, the country ranks eight in productivity, which is lower by about 100 Kg. than the world average. The low yield levels are attributed to cultivation of the crop mostly in rain fed areas and in marginal lands with low inputs, low technology, poor plant population, inadequate fertilization and lack of plant protection. Another factor is inefficient post-harvest technology, All these factors have jointly contributed to low and unstable yields of groundnut crop in India. Groundnut is an important protein supplement for cattle and poultry rations. It is also consumed as a confectionery product. The cake can be used for manufacturing artificial fibre. The haulms are fed to livestock. Groundnut shell is used as fuel for manufacturing coarse boards, cork substitutes. Groundnut is also valued as a rotation crop. Being a legume with root nodules, it can synthesize with atmospheric nitrogen and thereby improve soil fertility. Oilseed Crops have been the backbone of agricultural economy of India from time immemorial. The area constitutes approximately one tenth of the total cultivated area in India. India occupies a prominent position, both in regard to acreage and production of oilseed crops in the world. The important oilseed crops grown in this country in order of importance are groundnut, rapeseed and mustard, sesame, linseed, safflower, castor, sunflower and niger. Groundnut is the most popular oilseed crop in India. This is known as Peanut, Earthnut, Monkey nut, Goober panda and Manilanut. It contains about 45 percent of 58

oil and 26 percent of protein. Groundnut kernels as a whole are highly digestible. One gram of kernel supplies 5.8 calories of food. This is compared with four calories per gram of sugar, 3.5 calories for whole wheat, and 2.6 calories of bread. The biological value of groundnut protein is among the highest of the vegetable proteins and equals that of casein. The oilcake obtained after the extraction of the oil is a valuable organic manure and animal feed. It contains 7.8 percent of nitrogen, 1.5 percent of phosphorus and 1.5 percent of potash. It is a good rotation crop, which builds up soil fertility by fixing atmospheric nitrogen through the root nodules bacteria and an efficient cover crop of lands exposed to soil erosion. 3.2. Area and Production of Groundnut Crop The major groundnut producing countries in the world are India, China, Nigeria, Senegal, Sudan, Burma and the United States of America. Out of the total area of 18.9 million hectares and the total production of 17.8 million tonnes in the world, these countries account for about 69 percent of the area and 70 percent of the production. India occupies the first place, both in regard to the area and the production in the world. About 7.5 million hectares are put under it annually and the production is about six million tonnes. Seventy percent of the area and seventy five percent of the production has been concentrated in the four states of Gujarat, Andhra Pradesh, Tamil Nadu and Karnataka. Andhra Pradesh, Karnataka, Tamil Nadu and Orissa have irrigated areas primarily during the rabi season. The irrigated areas form about six percent of the groundnut area in India. In these states groundnut production is mainly depends on rainfall. 3.3. Climate and Soil Groundnut is grown throughout the tropics and its cultivation is extended to the subtropical countries lying between 45 North and 35 South and up to an altitude 59

of 1,000 metres. The crop can be grown successfully in places receiving a minimum rainfall of 500 mm and a maximum rainfall of 1250 mm. The rainfall should be distributed well during the flowering and pegging of the crop. The total amount of rainfall required for presowing operations (preparatory) is 100 mm, for sowing it is 150 mm and for flowering and pod development an evenly distributed rainfall of400-500 mm is required. The groundnut crop, however, cannot stand frost, long and severe drought or water stagnation. Groundnut is grown on a variety of soil types. However, the crop does best on sandy loam and loamy soil and in black soils with good drainage. Heavy and stiff clays are unsuitable for groundnut cultivation as the pod development is hampered in these soils. 3.4. Rotation and Mixed Cropping Generally, as a kharif crop, groundnut is grown year after year. In certain places, it is rotated with wheat, jowar, bajra, gram, castor, paddy and cotton and in some areas with garden crops, such as potatoes, onions, chillies, garlic, ginger and turmeric. The yields of the cereal crops following groundnut are usually increased by about 25 percent. 3.5. Seasons for Groundnut Cultivation Groundnut is raised mostly as a rainfed Kharif crop, being sown from May to June, depending on the monsoon rains. In some areas, or where the monsoon is delayed, it is sown as late August or early September. As an irrigated crop it is grown to a limited extent between January and March and between May and July. For a Kharif crop, with the onset of rains in May and June, the field is given two ploughings and soil is pulverized well to obtain a good tilth. The third ploughing may be given for cultivation. 60

3.6. Varieties of Groundnut The varieties under cultivation fall into three groups in respect of the habit of growth, namely bunch (Spanish), semi-spreading and spreading. In the bunch group, the plants grow erect, possess light-green foliage, produce pods in clusters at the base of the plant and have round, plump non-dormant seeds, with light-rose test. In the case of the semi-spreading and spreading varieties, the branches trail either partially or completely on the surface of the soil, produce pods all along them, possess darkgreen foliage and have oblong, dormant brownish seeds. The semi-spreading and spreading types are usually heavier yielding and later maturing than the bunch varieties. 3.7. Storage Facilities After cleaning and drying of groundnuts to a safe moisture content, they have to be stored to keep them dry and have to be protected against insect and rodents to prevent loss of natural colour and flavour and development of rancidity. Hence, proper storage of groundnut pods is an important step whether the pods are used for oil extraction or seed or for edible purpose. Farmers usually dispose of their groundnut pods (apart from the quantities retained by them for seed and edible use) within three to four weeks after harvesting, although some rich farmers store the pods for three to four months expecting favourable market prices. Pods used for seed purpose are stored for seven to eight months and those intended for edible purpose are stored till the commencement of the next harvesting season. Storage is invariably in the form of unshelled pods. Pods for seed purpose are generally stored in earthen pots, mud bins, bamboo baskets or wicker baskets, which are often plastered with mud and cow dung. Gunny bags are also sometimes used for 61

storage. After the receptacles are filled with pods, they are sealed. The gunny bags are also stitched. Pods kept in gunny bags are more liable to be damaged by dampness, rodents and other storage pests. At 18 c temperature seed viability of groundnut can be prolonged for 10 years without deterioration. 3.8. Trends in Groundnut Production at International Level Over half of the groundnut harvested worldwide is crushed for oil and a substantial quantity of groundnut produced in developing countries is traded in domestic markets. International trade of groundnuts is mainly in the form of shell (pods). A large trade of confectionery groundnut is also booming in the international market. The major exporting countries of groundnut in shell and shelled cake are the developed countries like UK, Holland, Germany, France, Canada and Japan which account for about 65 percent of world s groundnut demand. However, the major suppliers of groundnut are the United States of America, China and Argentina. The international price of groundnuts is generally decided by the crop size and quality in the United States of America. The fortunes for the Indian groundnut (shelled) export are bright and it may emerge as a major supplier of raw and processed groundnut mainly because of its large production base. The production price of groundnut in India is competitive globally. The market price is only 16 percent above the producer price. Except for India and the United States of America the price ratio is above 40 percent in the leading exporting countries. Though India is the largest producer of groundnut in the world, its share in the worldwide edible groundnut oil market is insignificant. From 1999 to 2002, India ranked first place by exporting about 50 percent of groundnut cake in the world followed by another 35 percent of world exports contributed by Sudan, Senegal, Argentina and the Netherlands. France, Thailand and 62

Indonesia account for more than 65 percent of groundnut cake import. In the 1990s, imports increased sharply in developing countries including Indonesia, Thailand, Malaysia and China, due to demand for meal from the growing livestock sector. Table 3.1: Major Exporting Countries of Groundnut in World during 2005-06 Countries Export of Groundnut inshell (Million Tonnes) (Value in 1000 $) Export of Groundnut Shelled in cake (Milion Tonnes) (Value in 1000 $) China 49,078 30,849 2,89,213 202412 India 4,394 2,303 86,494 50276 Argentina 075 039 16,068 115541 South Africa 4,378 3,370 25,406 16722 Netherlands 6,089 5,564 81,335 79868 Indonesia 1,992 1,874 206 110 Brazil 2,100 1,676 558 440 Sudan 144 073 7,170 3666 Senegal 120 079 9,823 5324 Myanmar 055 020 130 132 Nigeria 018 015 1,277 624 Source: Food and Agriculture Organisation, Production Year Book, Vol.56,2006. As shown in table 3.1, India ranked third place in the export of groundnut in shell with 4349 million tonnes after China and Netherlands. Regarding to the export value of groundnut in shell India is in third place. India is in second place in the export of shelled groundnuts after China with an export of 86,494 million tonnes. But India stands in fourth place regarding to the export value of groundnut shells and also in the export value of shelled cake. Nigeria is in last-position in export of groundnut shells and Myanmar is in last place in regarding to export of shelled cake during 2005-06. 63

International trade in confectionery groundnut grew steadily from the late 1970s to the mid 1990s. Most of the increase in export share was concentrated in Asia, particularly in China, Vietnam and India, which together currently account for almost half of the world exports. Export shares increased slightly in Latin America and Caribbean due to primarily increased shipment form Argentina, which now accounts for 13 percent of the world export. In contrast, export shares from Africa declined by about one third between the late 1970s and mid 1990s. Groundnut oil is thinly traded in international markets because; the major producers like China, India and the United States of America consume substantial amounts in their domestic markets. This national use reduces the quantities available for export. In 1960s and 1970s groundnut oil was the major item of trade as edible groundnut trade was negligible. Edible groundnut dominates world groundnut trade while groundnut oil is of minor importance. The export trade of oil in developing countries is mainly concentrated in Senegal and Sudan. 3.9. WTO and Groundnut Trade In the 21st Century, groundnut trade may change as a result of the General Agreement on Tariffs and Trade (GATT) negotiations. Under the GATT agreement, producer and consumer subsidies as well as trade restriction must be eliminated or at least reduced. The United States of America maintains import restrictions on groundnuts. A GATT agreement could eliminate import restrictions and open the United State of America s domestic groundnut market to other countries. India has a self-sufficiency policy for vegetable oil, of which groundnut is a major component. In addition, India has producer subsidies, as do many other countries. Under the GATT agreement, these markets would be opened up and costs of production could change. 64

The global groundnut trade estimated at about 0.70 million tones per annum is likely to reach 0.85 million tones in the next few years. As a matter of fact, an efficient marketing for groundnut is essential for the development of groundnut market. The marketing system contributes greatly to commercialization by subsistence fanners. Governments of various republics are worldwide recognized the importance of liberalizing agricultural markets. The ever changing socio-economic environment, increasing production, latest technologies, increasing pressures for downsizing the distribution chain and reducing the margin between farmer and ultimate consumer and challenges emerging out of liberalization in the Post-WTO period, require a vibrant, dynamic and assimilative marketing structure and system. 3.10. Area, Production and Productivity of Groundnut in India In India, 6,853 thousand hectares of area is under cultivation and produces 7867 thousand tonnes of the groundnut during 2005-2006 as shown in table3.2. Its production during 1996-97 was 8643 thousand tonnes with an yield of 1138 kgs per hectare in India. However, the area under groundnut was declined from 7596 thousand tonnes in 1996-97 to 5953 thousand tonnes in 2002-03. During the next three years i.e., from 2003-04 to 2007-08, the area under groundnut was increased from 5998 thousand tonnes to 6853 thousand tonnes. The reason for the declining trend of groundnut area is mainly change of cropping pattern and low rainfall in the southern states during the last few years. There were fluctuations in the production of groundnut in India during the decade 1996-97 to 2005-06. During 2002-03 the area, production and productivity of groundnut was low due to low rainfall in Gujarat and Andhra Pradesh. 65

Table 3.2 Area, Production and Productivity of Groundnut Crop in India during 1996-2008 Productivity Area Production Per hectare Year (OOO hectaes) (OOO tonnes) (in kgs) 1996-97 7596 8643 1138 1997-98 7088 7372 1040 1998-99 7396 8982 1214 1999-00 6867 5258 766 2000-01 6732 6408 952 2001-02 6238 6865 1100 2002-03 5953 4663 783 2003-04 5998 8127 1355 2004-05 6827 6774 992 2005-06 6853 7867 1148 2006-07 6942 7815 1126 2007-08 6917 8216 1188 Annual Average 6783.917 7249.167 1066.833 Source: Directorate of Economics and Statistics India, Various issues 2009. Fig. 3.1: Area, Production and Productivity of Groundnut Crop in India (1996-08) - Area (OOO hectaes) Production (OOO tonnes) Productivity Per hectare (in kgs) o o 1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 1 2007-08 The annual average area, production and productivity of groundnut during 1996-97 to 2005-06 was 6754 thousand hectares, 7095 thousands tonnes of production and 1048 kgs per hectare respectively as shown in table 3.2. The area, 66

production and productivity of groundnut in India during 1996-97 to 2005-06 is presented in diagram 3.1. 3.11. Area, Production and Productivity of Groundnut in Major Groundnut Growing States of India The state-wise break up of area production and productivity of groundnut is presented in table 3.3. It may be noted that Andhra Pradesh, Gujarat, Karnataka and Tamil Nadu occupied the top four positions in area cultivated. Gujarat tops with 2000 thousand hectares followed by Andhra Pradesh 1841 thousand hectors, Karnataka 967 thousand hectors and Tamil Nadu 615 thousand hectors. But there is a slight change in the order as far as production is concerned. Gujarat tops with 27.87 percent of total production followed by Andhra Pradesh 24.19 percent, Tamil Nadu 14.84 Percent and Karnataka 1095 percent. Though other states like Maharastra, Rajasthan, Orissa, Madhya Paradesh, Uttar Pradesh and West Bengal are the important groundnut producing states. Table 3.3: Area, Production and Yield of Groundnut Crop in Major Groundnut Growing States in India during 2005-2006 S. No State Area (000"hectares) Production (000 tonnes) Yield per hectare (in kgs) 1 Andhra Pradesh 1841 1639 890 2 Gujarat 2000 1886 943 3 Karnataka 969 742 766 4 Maharastra 447 502 1123 5 Madhya Pradesh 209 242 1157 6 Tamil Nadu 615 1005 1634 7 Orissa 231 351 1519 8 Rajasthan 287 446 1554 9 West Bengal 046 071 1543 10 Uttar Pradesh 085 069 812 India 6827 6774 1194 Source: Directorate of Economics and Statistics, India, Various issues. 67

Fig. 3.2: Area, Production and Yield of Groundnut Crop in Major Groundnut Growing States in India during 2005-2006 2500 Area (000"hectares) a Production (000'tonnes) Yield per hectare (in kgs) < c3> S' / VV The production of groundnut per hectare is high in Tamil Nadu with 1634 kgs per hectare, but it was in third place in total groundnut production during 2005-06. The yield per hectare is low in major groundnut growing states of Andhra Pradesh and Gujarat. The yield per hectare is very low in Karnataka (766 kgs per hectare) comparatively with other states. The area, production and productivity of groundnut in major groundnut growing states of India are presented in diagram 3.2. 3.12. Area, Production and Productivity of Groundnut in A.P. The area, production and productivity of groundnut crop in Andhra Pradesh during 1996-97 to 2008-09is presented in table 3.4. The area under groundnut crop in Andhra Pradesh was fluctuated between 14,69,624 hectares in 2002-2003 and 21,98,324 hectares in 1996-97.It is observed that the area under groundnut was declined in Andhra Pradesh from 21,98,324 hectares to 14,69,624 hectares during 1996-97 to 2002-03.The reason for this declining trend in area under groundnut was mainly inadequate and uneven rainfall in Rayalaseema region and change of cropping pattern in recent years in irrigated as well as un irrigated areas in all over the state. 68

Table 3.4 Area, Production and Yield of Groundnut Crop in Andhra Pradesh during 1996-06 Year Area (in hectares) Production (in tones) Yield Per hectare (in kgs) 1996-97 2198324 20,44971 930 1997-98 1834032 1155930 630 1998-99 1991919 2155067 1081 1999-00 1795117 1089246 606 2000-01 1873817 2142953 1143 2001-02 1691118 1250233 739 2002-03 1469624 820654 558 2003-04 1493259 985813 660 2004-05 1841133 1639241 890 2005-06 1875544 1365817 728 2006-07 1334232 742637 557 2007-08 1795306 2602847 1450 2008-09 1766354 973264 551 Annaual Average 1766137 1459129 810 Source: Directorate of Economics and Statistics India, Various issues. But during the next three years, the area under groundnut was increased from 14,93,259 hectares in 2003-04 to 18,75,544 hectares in 2005-2006. The production of groundnut crop was also fluctuated from year to year during the decade under study. In three out of ten years under study the production of groundnut varied from 7,42,637 tonnes to 26,02,847 tonnes. The productivity of groundnut was significant in two out of ten years under study (1,081 kgs in 1998-99 and 1,143 kgs in 2000-01). The reason for this may be due to good monsoons during these two years under reference. The productivity is very low with a variation of 551 kgs per hectare to 738 kgs per hectare in eight out of 13 years under reference. The area, production and productivity of groundnut crop in Andhra Pradesh during 1996-97 to 2005-2009 is diagrammatically presented in diagram 3.3. 69

Fig. 3.3: Area, Production and Yield of Groundnut Crop in Andhra Pradesh during 1996-09 3000000 2500000 2000000 1500000 1000000 500000 - Area (in hectares) * Production (in tones) Yield Per hectare (in kgs) 0 & 3.13. District-Wise Area and Production of Groundnut Crop in Andhra Pradesh Table 3.5 shows that Anantapur, Kumool, Kadapa and Chittoor districts of Rayalaseema region in Andhra Pradesh occupied the first four places in area under groundnut cultivation in 2008-09. It shows that Rayalaseema region in Andhra Pradesh is in first place regarding to the area under groundnut cultivation in A.P. The area under groundnut cultivation was 8,70,456 hectares in Anantapur district, 2,46,143 hectares in Kumool district, 1,41,012 hectares in Kadapa and 1,88,903 hectares in Chittoor district. In terms of production of groundnut, it was high in Anantapur district, followed by Kumool district, Chittoor district and Kadapa district. The yield per hector was high (2867 kgs per hectare) in Nellore district of Andhra region. In this district the yield per hectare was greater than the state average of 728 kgs per hectare during 2008-09. The yield per hectare was only 114 kgs per hectare in Anantapur district which occupied first place in area in Andhra Pradesh. The reason for this is the groundnut crop in Anantapur district is mainly grown in un-irrigated areas. 70

Table 3.5 Area, Production and Productivity of Groundnut Crop in Andhra Pradesh during 2008-2009(district wise) S. No District Productivity Area Production per hectare (in hectares) (in tonnes) (in kgs) 1 Srikakulam 29837 30556 1024 2 Vizayanagaram 38231 40522 1060 3 Visakapatnam 4343 5944 1369 4 East Godavari 486 1053 2167 5 West Godavari 10690 19989 1870 6 Krishna 8169 20385 2495 7 Guntur 5242 12601 2404 8 Prakasam 9574 19135 1999 9 Nellooe 12645 36258 2867 10 Chittore 188903 130616 691 11 Kadapa 141012 64371 456 12 Anantapur 870456 100012 114 13 Kumool 246143 176146 716 14 Mahabubnagar 99472 162913 1637 15 Ranga Reddy 7091 14156 1996 16 Medak 1823 3557 1951 17 Nizamabad 2878 6394 2222 18 Adilabad 5957 7500 1259 19 Karimnagar 16780 30244 1802 20 Warangal 34479 54344 1576 21 Khammam 6804 10875 1598 22 Nalgonda 25339 25693 1014 Andhra Pradesh 1766354 973264 551 Source: Directorate of Economics and Statistics India, Various issues. 2006 Mostly it is a rain fed crop in the district. The productivity of groundnut is low in Rayalaseema districts than in other two regions of the state. The three low productive district of Rayalaseema region are mainly depends on rainfall for better production of groundnut. 3.14. Area under Oilseeds and Groundnut in A.P. Table 3.6 shows the area under oilseeds during 1996-97 to 2008-09. As shown in table 3.6 the area under oil seeds was 30,89,069 hectares in 1996-97 and it declined steadily to 24,33,820 hectares by 2002-2003. The area under oil seeds again increased 71

from 26,64,119 hectares in 2003-04 to 30,40,653 hectares in 2005-06 and declined to 23,61,337 hectares in the next year under reference. During the decade under study the area under oilseeds was fluctuated from year to year due to fluctuations in rainfall in the state. The area under groundnut was also decreased from 21,98,324 hectares to 13,34,232 hectares in 2006-07 under study with significant fluctuations from year to year. The percentage of groundnut crop to the total oilseed crops in the state was also fluctuated between 56.05 percent in 2006-7 and 71.16 percent in 1996-97. The diagram 3.4 shows the area under oil seeds and groundnut crop in Andhra Pradesh during the reference period. Table 3.6: Oil Seeds and Groundnut Area in Andhra Pradesh during 1996-2009 Year Oil Seeds Area (in hectares) Groundnut Area (in hectares) %of Groundnut area to total oil seeds area 1996-97 30,89,069 21,98,324 71.16 1997-98 27,02,439 18,34,032 67.87 1998-99 2865693 19,91,919 69.51 1999-00 26,91,198 17,95,117 66.7 2000-01 28,29,683 18,73,817 66.22 2001-02 25,56564 16,91,118 66.15 2002-03 24,33,820 14,69,624 60.38 2003-04 26,64,119 14,93,259 56.05 2004-05 30,33,666 18,41,133 60.69 2005-06 30,40,653 18,75,544 61.68 2006-07 2361337 1334232 56.50 2007-08 2782094 1795306 64.53 2008-09 2728226 1766354 64.74 Source: Directorate of Economics and Statistics India, Various issues. 72

Fig.3.4: Oil Seeds and Groundnut Area in Andhra Pradesh during 1996-2009 3.15. Cropped Area, Oilseeds Area and Groundnut Area in A.P. Table 3.7 presents the data relating to the total cropped area, area under oil seed crops and the groundnut area in Andhra Pradesh during 2005-2006. As shown in colum 3, table 3.7 the total cropped area was high in Anantapur district (11,04,586 hectares) of Rayalaseema region and low in Ranga Reddy district (2,45,214 hectares) of Telangana region. Among all Telangana districts, Mahaboob Nagar district has 7,75,584 hectares of total cropped area and in Andhra region, Prakasam district is in first place with 6,15,562 hectares of total cropped area. As shown in table 3.7 the area under oil seeds was high in Anantapur district (9,51,241 hectares) in the state. In Andhra region, the area under oil seeds was high in Vizianagaram district (66,637 hectares) and low in Krishna district (11,637 hectares). Whereas in Telangana districts, the area under oil seeds during 2008-09 was high in Mahaboob Nagar district (3,03,732 hectares) and low in Khamman district (15,822 hectares). It is observed from table 3.7 that Anantapur district occupies first place in area under groundnut crop also (8,99,.35 hectares). In Rayalaseema region, Chittoor district was in last place regarding to the area under groundnut with 1,95,377 hectares 73

in 2008-09. In Telangana region, Mahaboob Nagar district stands first and Nizamabad district was in last place in the area under groundnut. In Andhra region, the area under groundnut was high in Viziyanagaram district (41,509 hectares) and low in East Godavari district (631 hectares). Table 3.7: Total Cropped Area, Area Under Oilseeds and Area Under Groundnut in Andhra Pradesh s. No District (1) Total Cropped area (2) Area under Oil seeds (3) Area under Groundnut 14) Percent of 3/2 Percent of 4/2 Percent of 4/3 1 Srikakulam 2,78,713 58,821 35,067 21.1 12.82 59.62 2 Vizayanagaram 2,85,570 66,637 41,509 23.33 14.54 62.29 3 Visakapatnam 2,88,450 36,496 6,353 12.65 2.20 17.41 4 East Godavari 4,15,982 56,288 631 13.53 0.15 1.12 5 West Godavari 4,76,002 35,340 4,389 7.42 0.92 12.42 6 Krishna 4,97,738 11,637 6,630 2.34 1.33 56.97 7 Guntur 6,15,286 19,756 5,069 3.21 0.82 25.66 8 Prakasam 6,15,562 58,026 9,810 9.43 1.59 16.91 9 Nellore 3,43,592 34,954 13,350 10.17 3.88 38.19 10 Chittoor 4,15,054 2,02,629 1,95,337 48.82 47.06 96.4 11 Kadapa 4,05,214 2,90,475 2,07,321 71.68 51.16 71.37 12 Anantapur 11,04,586 9,51,241 8,99,035 86.12 81.39 94.51 13 Kumool 8,86,256 4,60,811 2,51,510 51.99 28.38 54.58 14 Mahaboobnagar 7,75,584 3,03,732 88,446 39.16 11.40 29.12 15 Ranga Reddy 2,45,214 25,462 4,531 10.38 1.85 17.79 16 Medak 4,23,171 36,258 2,675 8.57 0.63 7.38 17 Nizamabad 2,47,620 49,374 2,201 19.94 0.89 4.46 18 Adilabad 5,36,977 1,02,367 4,274 19.06 0.79 4.17 19 Karimnagar 4,98,260 30,731 14,105 6.16 2.83 45.89 20 Warangal 4,88,959 69,260 42,128 14.16 8.62 60.83 21 Khammam 4,55,575 15,822 6,025 3.47 1.32 38.08 22 Nalgonda 5,38,257 1,24,536 35,148 23.14 6.53 28.22 Andhra Pradesh 1,08,38,622 30,40,653 18,75,544 28.05 113 61.68 Source: Directorate of Economics and Statistics India, Various issues The share of oilseeds to the total cropped area was high in Anantapur district (86.12 percent) followed by Kadapa district (71.68 percent) during 2008-09. The share of oil seed crops to the total cropped area was low in Krihsna district. Regarding to the share of groundnut crop to the total cropped area in Andhra Pradesh, Anantapur district stands first with 81.39 percent and East Godavari district was in last place 74

with 0.15 percent of total cropped area in the State. Regarding to the share of groundnut cropped area to the oil seeds cropped area Anantapur district occupied first place and East Godavari district occupied last place with 94.51 percent and 1.12 percent respectively. It is observed from the table 3.7 that Anantapur district of Rayalaseema recorded first place in total cropped area and in oil seeds area in the state during 2008-09. 3.16. Production of Oilseeds and Groundnut in A.P. District-wise production of oilseeds and groundnut in Andhra Pradesh during 2008-09 is presented in table 3.8. The production of oil seeds was high in Kumool district (304014 tonnes) followed by Mahaboobnagar district (224169 tonnes). The production of oilseeds was fluctuated between 3,04,014 tonnes in Kumool district and 14,401 tonnes in Guntur district during 2008-09. The total oil seeds production in Andhra Pradesh during 2008-09 was 20,58,505 tonnes. S. No Table 3.8: Production of Oil Seeds and Groundnut during 2008-09 in Andhra Pradesh, (District-Wise)(in tonnes) District (1) Production Oil seed (2) Production Groundnut (3) Percent of 2/3 1 Srikakulam 37223 30556 82.09 2 Vizayanagaram 47205 40522 85.84 3 Visakapatnam 67894 5944 8.75 4 East Godavari 117803 1053 0.89 5 West Godavari 175747 19989 11.37 6 Krishna 91641 20385 22.24 7 Guntur 14401 12601 87.50 8 Prakasam 68368 19135 27.99 9 Nellore 49735 36258 72.90 10 Chittoor 133196 130616 98.06 11 Kadapa 106757 64371 60.30 12 Anantapur 127282 100012 78.58 13 Kumool 304014 176146 57.94 14 Mahabubnagar 224169 162913 72.67 15 Ranga Reddy 22790 14156 62.11 75

S. No District (1) Production Oil seed (2) Production Groundnut (3) Percent of 2/3 16 Medak 37448 3557 9.50 17 Nizamabad 117745 6394 5.43 18 Adilabad 134050 7500 5.59 19 Karimnagar 34795 30244 86.92 20 Warangal 57371 54344 94.72 21 Khammam 51918 10875 20.95 22 Nalgonda 36953 25693 69.53 Andhra Pradesh 2058505 973264 47.28 Source: Directorate of Economics and Statistics, Andhra Pradesh. The production of groundnut in Andhra Pradesh during 2008-09 was high in Kumool district followed by Mahaboob Nagar district. The groundnut production in Andhra Pradesh during 2008-09 varied from 1,76,146 tonnes in Kumool district and only 1,053 tonnes in East Godavari district. The share of groundnut production to total oilseeds production was 98.06 percent in Chittoor district followed by Warangal district with 94.72 percent. The lowest share of groundnut was in Adilabad, Nizamabad and Medak districts of Telangana region. The total production of groundnut in Andhra Pradesh was 9,73,264tonnes with a share of 47.28 percent of total oil seeds production in Andhra Pradesh. Table 3.8 shows that all the Rayalaseema districts and Mahaboob Nagar and Adilabad districts are dominating oil seeds production in the state. Regarding to the groundnut production, all the Rayalaseema districts have high production along with Mahaboob Nagar district of Telangana region. 76

3.17. Area and Production of Groundnut Crop in Anantapur District It can be observed from the table 3.9 that the area and production of groundnut in Anantapur district are showing a steady growth with increasing trend. However, the average yield per hectare has almost remained different variations during the period under study. The total area under groundnut increased from 7,59,419 hectares in 1996-97 to 8,99,035 hectares in 2005-06 recording an increase of 18.38 percent. Correspondingly, the production has decreased form 5,55,251 tonnes in 1996-97 to 3,91,965 tonnes in 2005-06 registering a decrease of 29 percent and again declined to I, 00,012 tonnes. The production was increased from 9,03,614 tonnes in 1998-99 recording an increase of 62.74 percent and also production increased to 9,08,795 tonnes in 2000-01 recording an increase of 63.67 percent and again it increased to II, 30,126 tonnes in 2007-08. Table 3.9: Area, Production and Yield of Groundnut Crop in Anantapur District during 1996-2009 Year Area (in hectares) Production (in tonnes) Yield per hectare (in kgs) 1996-97 7,59,419 5,55,251 731 1997-98 6,71,047 2,50,175 372 1998-99 7,81,179 9,03,614 1156 1999-00 7,16,650 2,74,815 383 2000-01 8,14,607 9,08,795 1116 2001-02 7,77,473 3,63,020 467 2002-03 7,49,791 2,78,604 372 2003-04 6,85,995 2,07,681 303 2004-05 8,72,000 7,06,000 809 2005-06 8,99,035 3,91,965 335 2006-07 8,91,202 5,16,115 579 2007-08 896826 1130126 1260 2008-09 870456 100012 115 Source: Directorate of Economics and Statistics India, Various issues. 1996-2009 77

3.18. Area, Production and Productivity of Groundnut at National Level to District Level Table 3.10 presents the comparative analysis of area, production and productivity of groundnut crop at National level, state level and at district level during 2005-2006. The area under groundnut production was 75,96,000 hectares in India during 2005-2006. During the same year, the area under groundnut in Andhra Pradesh was 21,98,000 hectares (28.94 percent) and 7,59,000 hectares in Anantapur district with a share of 9.99 percent of India s total groundnut area and 34.53 percent of Andhra Pradesh total groundnut area during 2005-2006. The production of groundnut during the same period in was 86,43,000 tonnes in India, 20,44,000 tonnes in Andhra Pradesh (23.65 percent) and 5,55,000 tonnes in Anantapur district (6.42 percent of India s production and 27.15 percent of A.P.). The area under groundnut in India was declined to 7396 thousand hectares in 1998-99 but the production was increased to 89,82,000 tonnes during the same year in India. The yield of groundnut per hectare was 1,137 kgs in India, 630 kgs in Andhra Pradesh and 731 kgs in Anantapur district. The area under groundnut in India fluctuated between 75,96,000 hectares in 1996-97 and 59,53,000 hectares in 2002-03. In Andhra Pradesh, the area under groundnut was also fluctuated from year to year. The growth rate of area under groundnut in India was in negative trend in five out of ten years under study. In Andhra Pradesh the growth rate was negative in four out of ten years under reference. Whereas in Anantapur district the growth rate of area under groundnut during 1996-97 to 2005-2006 was negative in four out of ten years under study. 78

Table 3.10 Area, Production and Yield at National, State and at the District Level During 1996-2006 (Area 000 hectares, Production in C Year India Growth Rate Andhra Pradesh Growth Rate Anantapur Growth Rate 1996-97 Area 7596 0.96 2198-0.99 759 2.02 Production 8643 14.04 2044-22.13 555-43.82 Yield 1138 13.01 630-32.26 731-44.95 1997-98 Area 7088-6.69 1834-16.56 671-11.59 Production 7370-14.73 1156-43.44 250-54.95 Yield 1040-8.61 1031 63.65 372-49.11 1998-99 Area 7396 4.34 1992 8.61 781 16.39 Production 8982 21.87 2155 86.42 904 261.6 Yield 1214 16.73 606-41.22 1156 211.02 1999-00 Area 6867-7.15 1795-9.89 815 4.35 Production 5258-41.46 1089-49.47 909 0.55 Yield 766 26.4 607 0.16 1115-3.63 2000-01 Area 6733-1.95 1865 3.4 777-4.54 Production 6410 21.9 2035 86.86 363-60.02 Yield 952 24.28 1091 79.74 467-58.12 2001-02 Area 6240-7.32 1691-9.32 749-3.73 Production 7027 9.63 1250-38.57 279-23.41 Yield 1126 18.28 739-32.26 372-20.34 2002-03 Area 5953 6.17 1470-13.07 686-8.41 Production 4121 44.46 821-34.32 208-25.45 Yield 694-38.36 558-24.49 302-18.82 2003-04 Area 5998 0.75 1493 1.56 686 0 Production 8127 97.21 986 20.1 208 0 Yield 1355 95.24 660 18.3 302 0 2004-05 Area 6827-13.82 1841 23.31 872 27.11 Production 6774-16.65 1639 66.23 706 239 Yield 992-26.79 890 34.85 809 168 2005-06 Area 6853 0.38 1876 1.9 899 3.09 Production 7867 16.13 1366-16.66 391-44.62 Yield 1148 15.72 728-18.2 435-46.23 Source: Directorate of Economics and Statistics India, Various issues.2006 Regarding to the growth rate of production trends in India, A.P. and same in Anantapur district was also negative in some years under study. The reason for this may be due to low rainfall under reference at national level to the district level. The productivity of groundnut in India varied between 1,355 kgs in 2003-2004 and 694 kgs in 2002-03. Regarding to the state of Andhra Pradesh the yield per hectare was fluctuated between 1,091 kgs in 2000-01 and 558 kgs per hectare in 79

2002-03. In Anantapur district the yield per hectare was high (1,156 kgs per hectare), in 1998-99 and low in 2002-03 and 2003-04 (302 kgs per hectare). 3.19. Comparative Statement of Groundnut Production The table 3.11 shows the comparative analysis of groundnut production in Andhra Pradesh and in Anantapur district during 1996-97 to 2005-2006. The production of groundnut in Andhra Pradesh was 21,55,067 tonnes in 1998-99 (highest production during the decade) and 8,20,654 tonnes (low production) in 20002-2003. Whereas in Anantapur district the production of groundnut was high during 2000-01 (9,08,795) and low during 2003-04 (2,07,681 tonnes). The share of groundnut production in Anantapur district to the total groundnut production of Andhra Pradesh varied from 21.07 percent in 2003-04 to 43.06 percent during 2004-05. Table 3.11 Comparative Statement of Groundnut Production in Andhra Pradesh State and in Anantapur District 1996-2006 (in tonnes) Year Andhra Pradesh Anantapur Percentage 3/2 1996-97 2044971 555251 27.15 1997-98 1155930 250175 21.64 1998-99 2155067 903614 41.93 1999-00 1089246 274815 25.23 2000-01 2142953 908795 42.41 2001-02 1250233 363020 29.04 2002-03 820654 278604 33.95 2003-04 985813 207681 21.07 2004-05 1639241 706000 43.06 2005-06 1365817 391965 28.69 2006-07 742637 321768 43.32 2007-08 2602847 1130126 43.41 2008-09 973264 100012 1028 Source: Directorate of Economics and Statistics, Andhra Pradesh. The diagram 3.6 represents the production of groundnut in Andhra Pradesh and in Anantapur district during the decade under study. In the state of Andhra Pradesh as a whole, the area under groundnut was also fluctuated from year to year. The growth rate of area under groundnut in India was in negative trend in five out of 80

ten years under study. In Andhra Pradesh the growth rate was negative in four out of ten years. Whereas in Anantapur district the growth rate of area under groundnut during 1996-97 to 2005-2006 was negative in four out of ten years. Fig. 3.5: Production of Groundnut in Andhra Pradesh and Anantapur District 3000000 2500000 2000000 1500000 Andhra Pradesh m~- Anantapur 1000000 3.20. Conclusions Groundnut is the most important oilseed crop in India. Especially in drought prone district of Anantapur, the fanners are mainly depends on groundnut cultivation. Due to lack of irrigation facilities and poor alternative cropping pattern in rain fed areas like Anantapur and in other Rayalaseema districts the farmers have been cultivating groundnut crop from the last several decades. But of nine oil seed crops grown in India, the area under groundnut accounts for about 45 percent of the total cropped area and 55 percent of the total oilseeds area. India is the major groundnut producing country in the world. It stands third place in exporting of groundnut and earned an amount of Rs. 52,579 lakhs during 2005-2006. The area under groundnut in India varied from 59,53,000 tonnes in 2002-03 to 75,96,000 tonnes in 1996-97 and its production varied from 46,63,000 tonnes to 81

89,82,000 tonnes during the decade under study. On an average the yield per hectare in India was 1048.80 kgs. Among the major groundnut producing states of India Gujarat stands first place in area and production of groundnut followed by Andhra Pradesh. The yield per hectare was high in Tamil Nadu followed by Rajasthan. In Andhra Pradesh the annual average production of groundnut during the decade undo- study was 1464992.50 tonnes and the annual average yield per hectare was 796.50 kgs. The area and production of groundnut was high in Rayalaseema districts comparatively other regions of the state. The annual average share of groundnut area to the total oil seeds area of Andhra Pradesh was 64.64 percent per annum. The annual average contribution of oilseeds area to the total cropped area of Andhra Pradesh was 28.05 per hectare and the share of groundnut area to the total cropped area and oil seeds area during 2002-2006 was 17.30 percent and 61.68 percent respectively. The production of groundnut in Andhra Pradesh was 13,64,817 tonnes and its share in total oilseeds production was 66.89 percent. In Anantapur district of Rayalaseema region in Andhra Pradesh the annual average production of groundnut crop during 1996-97 to 2008-09 was 100012 tonnes and annual average yield per hectare during the same period was 604.40 kgs. Comparatively with coastal districts, the yield per hectare is low in Anantapur district due to uneven rainfall, less concentration on fertilizers, poor economic conditions of the farmers, inadequate financial resources, poor technology and poor agricultural extension activities in the district. By fulfilling the above factors, the productivity per hectare may be increased in Anantapur district in future. 82

3.21. References 1. GOAP (2009), Season and Crop Report, Bureau of Economics and Statistics, Govt, of Andhra Pradesh, Hyderabad. 2. GOAP (2009), Statistical Abstract, Bureau of Economics and Statistics, Government of Andhra Pradesh, Hyderabad. 3. GOAP (2009), Economics Survey of A.P. 2009, Government of Andhra Pradesh, Hyderabad. 4. GOI (2008) Economic Survey of India 2008, Government of India, New Delhi. 5. CPO (2010), Hand Book of Statistics, Anantapur, Chief Planning Office, Anantapur District, Anantapur. 83