ANVESAK

ISSN 0378-4568
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JULY-DECEMBER 2014

NUMBER 2

Trends in Area and Production of Horticulture Sector in India

Kappa Kondal
Abstract
Present study is to analyze the trends in the Indian horticultural sector; to study the
instability of all horticulture crops in India and to examine the relationship between
horticulture sectors area, production and horticulture sector exports from and import to
India. The major findings are - the coefficient of correlation is positive and significant
among the all variables. However, there is a high and strong relationship (.961) between
horticulture production and horticulture exports from India. In order to reduce the imports
from abroad, to increase the area under the cultivation of horticulture crops and productivity
through adopting modern technology is a pre-condition in Indian horticulture sector.

Keywords: Indian Agriculture, Trends, Growth, Horticulture Sector

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Introduction
The horticulture sector is perhaps the most profitable venture of all farming activities. It
provides ample employment opportunities and scopes to increase the income of the
horticulture crops growers in India. Horticulture crops occupy an important position in terms
of providing livelihood options, mitigating to some extent the excess demand for cereals and
contributing to food and nutritional security. In 2012-13, horticulture sectors gross cropped
area and production is 236.94 (000 HA) and 268847(000 MT) respectively. It contributes
around 30 percent to agriculture Gross Domestic Product (GDP) in India. The major share of
horticulture crops are fruits and vegetable. These are major exports from India to Bangladesh,
Nepal, UAE, UK and Malaysia etc. The fruits and vegetables had grown visibly owing to the
recent growth in demand and in the international market over a period of time. The demand
for fruits and vegetables increases due to improving the quality of lives of the people in rural
and urban areas in world. This is a small evident from the rapidly increase in the share of
these crops in the total net exports in the country.
Need for the Study
The horticulture sector plays a significant role for economic development in world. It is
contributing to agriculture GDP and mostly through foreign exchange in India. The demand
for fruits and vegetables are increasing due to improvement in the quality of lives of the
people in rural and urban areas in India and the world. Keeping this view, there is a need to
know the trends in horticulture sector and instability of all horticulture crops in India.
Objectives of the Study
1. To analyze the trends in area and production pertaining to the horticulture sector
in India
2. To study the instability of all the horticultural crops in India
3. To examine the relationship between horticulture sectors area, and production;
and exports from and imports to India.

This article was published in ANVESAK Journal. Anvesak is published by Director, Sardar Patel
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ANVESAK
ISSN 0378-4568
VOLUME 44

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NUMBER 2

Methodology:
To fulfill the above objectives of the study, the secondary source of the data have
been collected from various sources The National Horticulture Board (NHB), Indian
Horticulture Database, Directorate General of Commercial Intelligence and Statistics
(DGCI& S), books and journals etc. The analysis period is 10 years i.e., from 2001-02 to
2010-2011. Graphs, Annual growth rate, Compound Annual Growth Rate (CAGR),
Coefficient of Variation and Coefficient of Correlation have been employed.

Where
r= Coefficient of correlation.
= Sum
x= Mean of horticulture sector area and production
y= Mean of horticulture sector exports and imports
X = Horticulture sectors area and production.
Y = Horticulture sectors exports and imports.
Results and Analysis
Graph: 1 shows the trends in the area of horticulture crops in India. During 2001 -2011, the
area under the cultivation of vegetables is the highest followed by fruits, plantation crops and
spices. During the study period, vegetables, fruits and plantation crops area rapidly increased
compared to aroma and medicinal, flowers and nuts crops. Area under the cultivation of
spices has declined since 2003-04. However, the total horticulture crops of area has risen
from 16593 (000 HA) in the year 2001-02 to 21824.6 (000 HA) in the year 2010-11.
Graph: 2 shows the trends in production of horticulture crops in India. During 2001 -2011,
the production of vegetables is the highest followed by fruits, plantation crops and spices.
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ANVESAK
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Fruits and vegetables are the major production crops in India. During the study period, the
production of vegetables has increased from 88622 (000 MT) to 146554 (000 MT) and
fruits production has increased from 43001 (000 MT) to 748775 (000 MT). The production
of vegetable and flowers has recorded a steady increase. Vegetables and Fruits show a
constant linear increase in production. A constant trend is observed in production of
plantation, spices, honey, mushrooms, nuts, aroma & medicinal and flowers. However, the
production of horticulture crops has risen from 145784(000 MT) in the year 2001-02 to
240531.6(000 MT) in the year 2010-11.
Table: 1 shows the annual growth rate of horticulture crops in terms of area. The fruits
have recorded the highest annual growth rate (8.3 percent) in 2004-05, but growth rate has
recorded to 0.9 percent by 2010-211. In the context of fruits, CAGR area is 5.3 percent.
Vegetables have recorded the highest annual growth rate (10.9 percent) in 2004-05, but the
growth rate has declined to 6.4 percent by 2010-11. In the context of vegetables, CAGR area
is 3.64 percent. Flowers has recorded highest annual growth rate (44.3 percent) in 2003-04,
but the growth rate has declined to 4.4 percent by 2010-11. In the context of flowers, CAGR
area is 6.76 percent. Nuts have recorded the highest annual growth rate (22.6 percent) in
2005-06, but the growth rate has declined to 2.43 percent by 2010-11. In the context of Nuts,
CAGR area is 2.43 percent. 100 percent of annual growth rate has occurred in aroma and
medicinal crop in 2005-06, but the growth rate has declined to 0.3 percent by 2010-11. In the
context of aroma and medicinal, CAGR area is 25.43 percent. The highest annual growth rate
of plantation crops (4.3 percent) has recorded in 2005-06, but the growth rate has declined to
1.3 percent by 2010-11. In the context of plantation crops, CAGR area is 1.43 percent. The
highest annual growth rate of spices (60.1 percent) has recorded in 2003-04, but the growth
rate has declined by 19.3 percent in the year 2010-11. In the context of spices, CAGR area is
negative (-1) percent.
During the study period, the coefficent of variation value of plantation crops is very
low (3.62) compared to other horticultural crops. Therefore, the plantation crops area is very
significant.
Table: 2 show the annual growth rate of horticulture crops in terms of production. The
highest annual growth rate of fruits (10.7 percent) has recorded in 2004-05, after that growth
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ANVESAK
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JULY-DECEMBER 2014

NUMBER 2

rate has declined. In the context of fruits production, CAGR is 6.36 percent. The highest
annual growth rate of vegetables (14.6 percent) has recorded in 2004-05, after that there are
fluctuation in growth rate. In the context of vegetbles production, CAGR is 5.75 percent. The
highest annual growth rate of flowers (37.4 percent) has recorded in 2002-03, after that there
were fluctuations in the growth rate. In the context of flowers production, CAGR is 7.56
percent. The highest annual growth rate of Nuts (23.1 percent) has recorded in 2005-06, after
that there are fluctuations in growth rate. In the context of Nuts of production, CAGR is 6.80
percent. Aroma and medicinal crop production has recorded highest growth rate (122.5
percent) percent in 2007-08. In the context of aroma and medicinal production, CAGR is
24.95 percent. The highest annual growth rate of plantation (35.7 percent), spices (35.8
percent) mushrooms (9.7 percent) and honey (420 percent) has recorded in 2005-06, 2005-06,
2009-10 and 2005-06 respectively. In the context of plantation, spices, mushrooms and honey
production, CAGR is 2.4 percent, 3.98 percent, 0.17 percent and 23.12 percent respectively.
During the study period, the coefficent of variation value of mushrooms production is
very low (5.16) compared to other horticultural crops. Therefore, the mushrooms production
is very significant.
Graph:3 shows the trends in horticulture exports from India. During the study period,
the horticulture sector exports has increased from 5184.21 crores in the year 2001-02 to
17371.19 crores in the year 2010-2011. Similarly, the total agriculture exports has increased
from 29728.61 crores to 120185.48 crores from 2001-02 to 2010-2011. On an average
horticulture exports are 10417.45 crores and total agriculture exports are 62939.83 crores.
However, the horticulture sector and total agriculture exports have moved upward direction
during the period of study in the country.
Graph: 4 shows the trends in horticulture imports by India. During the study period,
the horticulture sector imports has increased from 1691.77 crores to 7522.7919 crores from
2001-02 to 2010-2011. In addition, the total agriculture imports has increased from 16256.61
crores to 56192.20 crores from 2001-02 to 2010-2011. On an average horticulture imports are
4457.85 crores and the total agriculture imports are 31260.08 crores. The horticultural
imports are increased due to decrease in productivity of horticultural crops. Therefore, the

This article was published in ANVESAK Journal. Anvesak is published by Director, Sardar Patel
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ANVESAK
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NUMBER 2

horticulture and agricultural sector imports have moved upward during the period of the
study in the country.
Table: 3 shows the correlation between the variables such as horticulture sector area,
production, exports from and imports by India. There is a positive and significant relationship
among all variables. However, there is a positive significant and high correlation between
horticulture production and horticulture exports in the country compared to other
combinations of variables.
Conclusions and Suggestions:
The horticulture sector has become one of the driving forces for overall development of
agriculture sector. Its products have more demand in local, national and international
markets. It occupies an important position in terms of providing livelihood options, meeting
the required amount of demand for food and nutritional security. The study reveals that there
is positive relationship between area and production of horticulture crops in India. There is a
lot of variations among all horticulture crops in terms of area and production. In terms of
area, the coefficent of variation value of plantation crops is very low (3.62) compared to
other horticultural crops. In the terms of production, the coefficent of variation value of
mushrooms production is very low (5.16) compared to other horticulture crops. The
plantation crops area and mushrooms crops production are very significant in the Indian
horticulture sector. However, there is a positive, significant and high relationship between
horticultural production and horticulture exports in the country compared to other
combinations of variables. In order to reduce the imports from abroad, to boost the area
under the cultivation of horticulture crops and productivity through adopting modern
technology is a pre-condition in Indian horticulture sector, to overcome this phenomenon.

Acknowledgement: the Author would like to thank Professor A. Nakula Reddy.

Dept. of Economics, Osmania University, Hyderabad, for his expert guidance, comments and
encouragement throughout this paper, as well as Santosh Kumar Biswal and B. Praveen
Kumar for their valuable suggestions.

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ANVESAK
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Graph: 1
Trends in Area of Horticulture crops in India

Source: National Horticulture Board (NHB).

Graph: 2
Trends in Production of Horticulture Crops in India

Source: National Horticulture Board (NHB).

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ANVESAK
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Graph: 3
Trends in Horticultural Exports from India
[2001-02 to 2010-11(p)]

P-Provisional
Source: Authors calculations based on DGCI&S, Ministry of Commerce, Kolkata
Graph:4

Trends in Horticulture Imports by India

[2001-02 to 2010-11(p)]

P-Provisional
Source: Authors calculations based on DGCI&S, Ministry of Commerce, Kolkata

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Table: 1

Annual growth rate of Horticulture crops (in terms of area)

Year
2001-02
2002-03
2003-04
2004-05
2005-06
2006-07
2007-08
2008-09
2009-10
2010-11
CAGR
Coefficient of Variation

Fruits

-5.5
23
8.3
5.4
4.3
5.5
4.2
3.7
0.9
5.3
17.43

Vegetables
-1
-0.2
10.9
7
5.1
3.5
1.7
0.1
6.4
3.64
12.42

Flowers
-34
44.3
16.8
9.3
11.6
15.5
0.1
9.8
4.4
6.76
28.64

Nuts
0
-9.4
0
22.6
1.5
0
3
4.3
NA
2.43*
36.82

Aroma & Medical

NA
NA
NA
100
23.7
22.5
8.3
18.3
0.3
25.43***
37.64

plantation crops
0
4
1.5
4.3
-2.3
-0.5
0.9
1.5
1.3
1.43**
3.62

Spices
0
60.1
-38.9
-24.9
3.5
6.9
0.5
-6.3
19.3
-1**
27.11

Source: Indian Horticulture Database-2012.

Note: *CAGR value is from 2002-03 to 2009-10. **CAGR value is from 2002-03 to 2010-11
***CAGR value is from 2004-05 to 2010-11
Table: 2

Annual Growth Rate of Horticulture Crops (In Terms of Production)

Year
2001-02
2002-03
2003-04
2004-05
2005-06
2006-07
2007-08
2008-09
2009-10
2010-11
CAGR
Coefficient of Variation

Fruits
5.1
1.6
10.7
8.8
7.6
10.1
4.4
4.5
4.7
6.36
20.13

Vegetables
-4.3
4.1
14.6
10
3.2
11.7
0.5
3.6
9.6
5.75
19.15

Flowers
37.4
-21.1
13.6
-0.8
34.6
-1.3
13.7
3.4
1
7.56
23.42

Nuts
0
6.1
0
23.1
0.7
18
-2.5
11.8
NA
6.80*
41.22

Aroma & Medicinal

NA
NA
NA
27
-11.9
122.5
8.6
33.1
5.7
24.95***
51.48

Plantation
0
35.7
-25.3
14.5
6.6
-5.9
0.3
5.2
0.7
2.4**
10.32

Spices
0
35.8
-21.7
-7.4
6.7
10.2
-4.9
-3.1
33.2
3.98**
12.54

Source: Indian Horticulture Database-2012.

Note: * CAGR value is from 2002-03 to 2009-10. ** CAGR value is from 2002-03 to 201011.
***CAGR value is from 2004-05 to 2010-11

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Mushroom
0
0
0
-12.5
5.7
0
0
9.7
0
0.17***
5.16

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Table: 3
Correlation between the variables
Variables
r value
Horticulture Area and Its Exports
Horticulture Production and Its Exports
Horticulture Area and Its Imports
Horticulture Production and Its Imports

.889**
.961**
.905**
.959**

Note: ** Correlation is significant at the 0.01 level (2 tailed test)

Source: Authors calculations based on NHB and DGCI&S, Ministry of Commerce, Kolkata

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This article was published in ANVESAK Journal. Anvesak is published by Director, Sardar Patel
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