Changing Patterns in Agricultural Output
- 04 Jul 2025
In News:
The Ministry of Statistics and Programme Implementation (MoSPI) recently released the “Value of Output from Agriculture and Allied Sectors” report (June 2025), revealing significant structural changes in India’s agricultural production and consumption over the past decade. The data reflects a shift away from staple cereals toward high-value crops such as fruits, vegetables, and spices—mirroring broader socio-economic transformations.
Key Findings: Rise of High-Value Crops
The Gross Value of Output (GVO)—the total value of agricultural production before deducting input costs—highlights changing food habits and production priorities. Between 2011–12 and 2023–24, the GVO of several non-traditional crops rose sharply. For example:
- Strawberries saw a 40-fold rise in GVO at constant prices (from ?1.32 crore to ?55.4 crore), and nearly 80-fold at current prices.
- Pomegranate GVO quadrupled to ?9,231 crore.
- Parmal (parwal) and pumpkin increased by 17 and 10 times, respectively.
- Mushroom and dry ginger witnessed 3.5x and 285% growth, the latter aided by improved agro-processing infrastructure.
This transformation indicates increasing demand for horticultural and niche crops with higher returns, aligning with government focus on nutritional security and export diversification.
Declining Importance of Cereals
Contrasting the rise of high-value crops is the decline in cereal dominance. The share of cereals in agricultural GVO fell from 17.6% (2011–12) to 14.5% (2023–24). Simultaneously, consumption data shows cereals’ share in urban MPCE dropped from 6.61% to 3.74%, and in rural MPCE from 10.69% to 4.97% over the same period. This trend aligns with Engel’s Law, where rising incomes lead to a shift in spending from staples to diversified food categories.
Rising Animal Product Consumption
The share of meat in agricultural GVO increased from 5% to 7.5%, reflecting higher protein intake as incomes grew. However, its GVO growth (131%) was still lower than that of some horticultural produce like strawberry (4,000%).
Changing Consumption Patterns
Data from the 2023–24 Household Consumption Expenditure Survey (HCES) supports this structural shift. The share of fresh fruits in rural MPCE rose slightly from 2.25% to 2.66%, while in urban areas it slightly declined. Yet, a 2024 study co-authored by Shamika Ravi indicates broader accessibility, with the proportion of rural households consuming fresh fruits increasing from 63.8% to 90.3%, especially among the bottom 20% income group.
Policy and Economic Implications
This transition from staple grains to high-value crops is driven by technological advancements, shifting consumer preferences, nutritional awareness, export potential, and government support for crop diversification. It reflects a move toward a more resilient, market-oriented agricultural system.
However, challenges remain in ensuring equitable access to high-value markets, stabilizing prices, and addressing risks associated with monoculture trends.
Conclusion
The MoSPI data reveals a critical inflection point in Indian agriculture. While traditional staples are declining in prominence, the rise of high-value horticulture and livestock signals both economic opportunity and the need for targeted policy to support inclusive, nutrition-sensitive agricultural growth.