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Economic Survey 2000 - 2001

General Review

Andhra Pradesh State ranked fifth in both the Area and Population of the country. About 73 percent of the State's population live in rural areas and they largely depend on agriculture for their sustenance. As per the Advance Estimates for the year 1998-1999 the Gross State Domestic Product at Constant (1980-81) Prices is estimated at Rs. 22,409.06 crores as against Quick Estimates of Rs. 20,214.94 Crores in 1997-98 registering an increase of 10.85 percent. This is due to significant increase in the contribution of agriculture sector which is due to very favourable seasonal conditions prevailed during both Kharif and Rabi seasons. Per capita income at Constant (1980-81) Prices for the year 1998-99 is estimated at Rs.2643 as against Rs. 2413 in 1997-98 (Quick Estimates) registering an increase of 9.53 percent.

Though the agriculture is the corner stone of the livelihood of the people the foodgrains production in the State during 1997-98 declined to 108.22 lakh tonnes against 136.81 lakh tonnes in 1996-97. All the important food crops like Rice, Jowar, Bajra, Maize, Ragi, Pulses etc. and non-food crops like Groundnut, Seasamum, Castor, Cotton etc. indicated decline in output. However during the Current agricultural year 1998-99 as per the Advance estimates, the production of foodgrains is expected to touch 133.50 lakh tonnes and the production of all the principal crops are expected to give fruitful results in yields.

Animal Husbandry sector plays an important role in providing not only good protienous food to the general public but also provides good supplementary income to the economically weaker sections of the society. Though its contribution to the State Income is meager according to an Integrated Sample Survey conducted by Animal Husbandry Department, the total milk production in the State during 1997-98 was estimated to be 4.5 million tonnes. The State with a long coastline of 974 is second largest in the country and it is unique in having fisheries resources in both Inland and Marine areas. The value of Inland fish produced in the State during 1997-98 was Rs.804.33 crores while that of Marine fish was Rs.520.02 crores.

The State is having 23.2 percent of the total geographical area under forests. The Income accrued from this sector was Rs.741.16 crores in 1997-98. The State occupies a pride place in Sericulture development and plays a vital role in rural development. It is mostly concentrated in Rayalaseema region of the State. The area covered under Mulberry cultivation in the State was 99,733 acres, the production of reeling cocoons was 24,809 tonnes and the Mulberry raw silk was 2696 tonnes in 1997-98.

Andhra Pradesh is in a unique position in implementing Poverty Alleviation Programs such as IRDP, TRYSEM, DWACRA, DPAP, IWDP, EAS etc. According to the Modified Expert Group's Report the percentage of people below poverty line in the State as a whole was around 22 percent while in the rural areas it was 15.92 percent. The State ranks second next only to Punjab in this respect.

In the Power sector, though the installed generation capacity increased from 6764 MW in 1996-97 to 7329 MW as on 31-12-1998, the actual energy generated in utilities and distribution is found to be not sufficient to the growing needs of the people at large in all the sectors viz., Domestic, Industrial,, Commercial etc.,. Since the APSEB is running under huge losses, the government initiated power reforms and the APSEB has since been bifurcated into two bodies namely APGENCO and APTRNSCO.

To ensure that Andhra Pradesh tops the list of Investment destinations in the next two decades, the Government launched an exercise in 1996 to prepare a blueprint for development called VISION-2020. This has been prepared by International Consultancy firm, Mc.Kinsey & Company. Realising the importance of infrastructure, the Janmabhoomi Programme was initiated in re-building the State by voluntary contributory labour and wherever possible funds for local community works.

The promotion of Hi-Tech City at Hyderabad is a joint venture with Larsen & Toubro Ltd. is attracting a host of Info-Tech Companies to "CYBERABAD." The first phase of Hi-Tech City has already been inaugurated. Apart from Janmabhoomi, institution of Vanasamrakshana Samithis, Watershed Committees, Water Users Associations, CMEY etc., are yielding fruitful results. The Indian Institute of Information Technology (IIIT) has began functioning from this academic year in Hyderabad. Several global majors like IBM, Micro Soft, Oracle have set up separate Schools in IIIT. The State Government has similarly expedited the establishment of Indian School of Business, being promoted by Indian Corporate Groups like Reliance, Godrej and Financial Institutions like Housing Development Finance Corporation, ICICI etc. There were peaceful labour-management relations in the state. The number of industrial work stoppages, workers involved and mandays lost were low in the first 10 months of 1998 compared to the corresponding period of previous year. The general index number of industrial production in the state revealed a marginal decline and the foreign Direct Investment (FDI) received during the year 1998 upto 31-12-1998 was only Rs. 66 crores as against Rs.1814.50 crores in1997-98. The number of job seekers on the Live Register of Employment Exchanges in the State upto the end of October, 1998, was 31.06 lakhs, of which educated unemployed stood at 26.54 lakhs.

There were 4995 Bank Offices of scheduled commercial banks in the state as at the end of June, 1998, with a deposit of 33,820.69 Crores. The Gross Bank Credit provided by these Banks was 22609.89 Crores. The Credit Deposit Ratio in the State was 66.9 while at the National Level it was only 54.5.

As per 1991 Census, the literacy rate in the State was 44.09 percent. Male literacy rate was 55.13 and Female literacy rate was 32.72. During 1997-98, Pupil-Teacher Ratio at Primary Stage was 49:1, at Upper Primary Stage, 39 : 1, and at High School Stage 32 : 1. On the Price front, the state experienced rise in prices of all essential commodities especially that of Onions and Vegetables. To overcome this, the state government on time initiated appropriated measures to contain the price rise. A special cell was formed to minitor and intiate remedial steps. Recently to make the vegetables easily available to the people " Rytu Bazars" were set up in the state which are yielding positive results. Sales Tax is the major source of revenue in the State. The revenue realised through Sales Tax on top 25 commodities in the State was Rs.2705.86 Crores in 1998-99 (upto November 1998), as against Rs.2394.66 Crores in the corresponding period of 1997-98. The proceeds received from State Excise increased to Rs.887.47 crores in 1997-98 mainly due to the lifting of ban on the sale of arrrack. A new system of computerised registration was introduced in all the Land Registration Offices in the State.

Income and Savings

Gross State Domestic Product (GSDP)

One of the major objectives of economic planning in Andhra Pradesh is to achieve rapid economic growth and to extend the benefits of that growth to the less developed areas of the State so that development does not become lopsided. It is in this connection the estimates of GSDP assumes paramount importance. The rate of change in GSDP at constant prices is considered to be the major economic indicator to measure the real growth in the economy. As per the Advance Estimates for the year 1998-99 the GSDP is estimated at Rs.22,409.06 Crore as against the Quick Estimate of Rs.20,214.94 Crore in 1997-98 registering a growth of 10.85 per cent. The Primary, Secondary and Tertiary Sectors registered growth rates of 21.75 per cent, 4.52 per cent and 8.53 per cent respectively. The growth rate of 21.75 per cent in primary sector is due to the significant contribution by the Agriculture sector. The food grains production during the year 1998-99 is expected to be to the tune of 133.50 lakh tonnes. In the Secondary sector the contribution by Electricity, Gas, and Water Supply is significant at a growth rate of 8.24 per cent, as compared with that of 1997-98. In Tertiary Sector the contribution by Trade, Hotels and Restaurants which predominantly depends upon the performance of agriculture and manufacturing showed an impressive growth rate of 9.9 per cent as compared with that of 1997-98.

The Sectoral contribution of GSDP at constant prices from 1990-91 to 1998-99 is given in table 2.1

Table - 2.1

Gross State Domestic Product of Andhra Pradesh At Constant (1980-81) Prices

                                                                                                Rs. In Crores


























1995-96 (R)





1996-97 (P)





1997-98 (Q)





1998-99 (A)





Source:- Directorate of Economics and Statistics, Government of Andhra Pradesh, Hyderabad.

R: Revised, P: Provisional, Q: Quick, A: Advance

Per Captia Income

The per capita income gives a better picture about the standard of living of the poeple. As per the Advance Estimates for the year 1998-99 the per capita income at constant prices is estimated at Rs.2643 as against Rs.2413 in 1997-98 (Quick Estimates) registering a growth rate of 9.53 per cent. The per capita income of Andhra Pradesh. at constant prices from 1990-91 onwards is given in table 2.2.

Table - 2.2

Per Captia Income of Andhra Pradesh at Constant(1980-81) Prices













1995-96 (R)


1996-97 (P)


1997-98 (Q)


1998-99 (A)


Source:- 1) Directorate of Economics and Statistics, Government of Andhra Pradesh Hyderabad.

GSDP of A.P. and GDP of All India at constant and current prices from 1980-81 onwards are given in Annexure-I. Percapita income of A.P. and All India both at constant and current prices are given in Annexure.II . The sectoral distribution of GSDP of Andhra Pradesh at constant and current prices are given in Annexure-III & IV respectively.

Small Savings

Small Savings play an important role in a welfare State. In Andhra Pradesh, the amounts collected through Small Savings schemes can not only be utilised for the developmental activities of the State but also repaid to the investors with an attractive interest after the expiry of the deposit period.

The performance of the Small Savings for the last three years has been as follows against the target set for the respective years:

Table - 2.3

Targets & Achievements































1998-99 (Upto nov 1998)







Source: Director of Small Savings and State Lotteries, Government of A.P., Hyderabad .

As can be seen there has been remarkable growth in the Small Savings collections over the past three years which indicates that there has been a shift to Investments in more secure instruments even though the rate of interests are marginally lower than those offered by other financial institutions. In the State, there are a total number of 19,429 Agents canvassing for Small Savings business and spread over 23 districts. The Small Savings Instruments are issued in the Post Offices of Andhra Pradesh, it has 16,168 Post Offices, the largest ranking second only to Uttar Pradesh.

An analysis of the trends of investments also confirms this, the major investments 47percent of the total collections made in the last three years has been from Kisan Vikas Patra followed by Monthly Income Scheme, 5 Year Post Office Recurring Deposit, National Savings Certificate - VIII Issue and 15 Years Public Provident Fund Scheme take the 4th and 5th positions. While the State has been able to achieve only 16percent of the net target in 1996-97 and 64.3percent of the net target in 1997-98. However a look at the district wise targets and achievements upto the March, 1998 revealed that Rangareddy district stood first in achieving the target followed by Warangal, Hyderabad, Karimnagar, Srikakulam and Anantapur districts. Adilabad, Khammam and Krishna districts are yet to pick up. In this direction in the Current financial year, it is hoped to achieve 100 percent of target by the end of December. This indicates the shift of confidence of the investors from private investments and securities to Small Savings instruments as they offer security reasonably good rate of interest.

Table - 2.4

Collections Upto The Month of March,1998

(Rupees in Crores)

Target Collections during the month. Collections upto the month.
Name of the district. Gross Net Gross Net % of Net Target achieved Gross Net % of Net Target achieved
01. Adilabad 105.00 35.00 5.25 0.39 13.51 38.31 5.22 14.91
02. Anantaplur 135.00 45.00 14.03 8.18 218.23 100.36 37.15 82.56
03. Chittoor 105.00 35.00 8.35 2.75 94.23 65.62 18.41 52.59
04. Cuddapah 165.00 55.00 18.81 13.59 296.59 122.89 33.87 61.58
05. East Godavari 228.00 76.00 24.54 14.71 232.23 139.80 35.60 46.84
06. Guntur 228.00 76.00 29.37 13.73 216.80 173.33 57.05 75.06
07. Hyderabad 300.00 100.00 55.24 37.39 448.69 241.60 100.47 100.47
08. Karimnagar 180.00 60.00 13.82 7.73 154.51 118.96 53.22 88.70
09. Khammam 135.00 45.00 6.81 2.42 64.50 51.23 9.76 21.69
10. Krishna 228.00 76.00 19.05 8.54 134.83 107.43 17.86 23.50
11. Kurnool 135.00 45.00 15.63 6.64 177.01 117.92 31.25 69.44
12. Mahaboob- Nagar 81.00 27.00 3.44 0.78 34.81 37.19 8.97 33.21
13. Medak 81.00 27.00 5.35 2.48 110.19 46.00 12.55 46.50
14. Nalgonda 81.00 27.00 4.06 1.29 57.21 42.63 7.60 28.15
15. Nellore 105.00 35.00 10.15 3.41 117.04 95.75 28.00 80.00
16. Nizamabad 105.00 35.00 5.82 2.53 86.69 42.41 13.01 37.18
17. Prakasam 165.00 55.00 16.77 5.61 122.40 140.00 37.24 67.71
18. Rangareddy 135.00 45.00 16.79 10.82 288.64 90.98 49.21 109.35
19. Srikakulam 105.00 35.00 9.57 4.83 165.74 72.15 29.24 83.54
20. Visakhapatnam 228.00 76.00 15.51 7.51 118.56 109.62 39.25 51.65
21. Vizianagaram 105.00 35.00 6.83 3.26 111.64 53.15 18.64 53.25
22. Warangal 105.00 35.00 30 72 25.64 879.11 87.16 36.93 105.52
23. West Godavari 210.00 70.00 12.47 7.32 125.47 96.52 24.40 34.85
TOTAL: 3450.00 1150.00 348.36 191.56 63.51 2191.00 704.89 64.3%
Source: Director of Small Savings and State Lotteries, Government of A.P., Hyderabad .

Table - 2.5

Collections Deposited In Post Offices

Comparative Statement Showing the Collections Deposited In Post Offices Upto March,
1996. (1994-1995 and1995-1996).

(Rupees in Crores)

Security 1994-95 1995-96
  Gross Net Gross Net
1. Post Office Savings Bank 456.75 20.47 698.46 122.28
2. Cumulative Time Deposit 3.15 -4.15 1.88 -3.25
3. 5 Year Recurring Deposit 258.32 120.44 311.16 135.213
4. Post Office One year Time Deposit. 17.51 5.96 15.33 -3.39
5. Post Office Two year Time Deposit. 2.77 1.88 2.75 1.08
6. Post Office Three Year Time Deposit. 2.14 0.91 1.82 0.83
7. Post Office Five year Time Deposit. 3.03 1.70 2.40 0.75
8. National Savings Certificate II Issue. 0.00 -0.47 -0.22 -0.48
9. National Savings Certificate VI Issue. 0.00 -61.06 -0.04 -11.15
10. National Savings Certificate VII Issue. 0.00 -2.93 0.00 -0.51
11. Indira Vikas Patra 82.16 -81.93 86.64 -85.49
12. Monthly Income Scheme. 205.98 171.07 154.27 103.124
13. National Savings Scheme, 1987. 34.71 -25.05 1.39 -102.64
14. Kisan Vikas Patra. 799.08 649.061 501.83 276.291
15. Public Provident Fund. 7.52 6.295 8.71 7.485
16. National Savings Certificate VIII Issue. 117.76 117.064 183.35 143.582
17. National Savings Scheme 1992. 7.57 7.10 6.83 6.06
18. Mahila Samrudhi Yojana 13.33 11.58 9.79 -2.47
19. Others. 0.00 -0.11 -0.83 -1.21
Total 2011.78 937.83 1985.51 586.10

Source: Director of Small Savings and State Lotteries, Government of A.P., Hyderabad .

Agriculture and Allied Sevices


The importance of agriculture in the State's economic life can hardly be over-estimated. Agriculture is the recognised basis of the economy. About 73 percent of the population of the State live in rural areas. The 1991 Census revealed that 65 percent of the population derive their means of sustenance wholly or mainely on land. Agriculture is also the premier source of our State income. According to the estimates of State Income for 1996-97 at Current Prices, agriculture alone contributed 27.8 percent of the total income of the State. The importance of agriculture does not lie simply in the fact that is the source of livelihood for the great majority of the population. Agriculture is the main source of food for the population and of fodder for the cattle.

Agricultural commodities have traditionally figured as the most important items in our experts. Agriculture forms the basis of our industry including trade and transport, agricultural holdings, farm implements , irrigation works and livestock represent the largest fixed capital in the State. Besides, agriculture is also an important source of revenue.

Land Utilisation

The total geographical area of the State is 274.40 lakh hectares at the end of 1997-98. The State uses 54.4 percent of the land within the geographical limits for cultivation. Net area sown formed 36.1 percent of the total geographical area, 22.6 percent of the total area is under forests. Barren and uncultivable land and put to non-agricultural use which are not available for cultivation account for 16.8 percent . Permanent pastures and other grazing lands, land under miscellaneous tree crops and groves and culturable waste which together constitute "Other uncultivated land" claims 6.1 percent

The Land Utilisation particulars are shown in the following table -

Table - 3.1

Land Utilisation Particulars

FROM 1994-95 TO 1997-98




(In lakh Hectares)


    1994-95 1995-96 1996-97 1997-98
1 Toal Geographical Area 274.40 274.40 274.40 274.40
2 Forest 62.46 61.49 62.45 61.99
3 Barren and Uncultivable Waste 20.69 21.46 20.83 21.09
4 Land put to non Agricultural use 25.01 24.34 24.72 24.96
5 Culturable Waste 7.79 7.84 7.22 7.52
6 Permanent Pastures and Other Grazing Lands 7.62 7.47 7.63 6.93
7 Land under Misc. Tree Crops and Groves not included in Net Area Sown 2.47 2.36 2.47 2.46
8 Other Fallow lands 17.45 16.95 15.47 16.20
9 Current Fallow lands 27.26 25.38 24.43 33.92
10 Net Area Sown 103.65 107.11 109.18 99.33

Source: Diretorate of Economics and Statistics, Government of Andhra Pradesh, Hyderabad



Agriculture in Andhra Pradesh is mostly dependant on rain fall success in agricultural production mostly depends upon the proper seasonal distribution of rainfall. In our State South-West and North-East monsoons are the two important periodic winds which are the important source of rains. South West Monsoon is spread over the period commencing from June and ending with September and North East Monsoon from October to December. The State received major portion of its rainfall from South West Monsoon as the total rainfull during the period alone was 752 mms.. The Season-wise and Region-wise average rainfall from 1983-84 to 1998-99 and the Season-wise and District-wise distribution of rainfall for the year 1998-99 in the State can be seen from Annexure -V and VI .

Due to heavy and continuous cyclonic rains received during the last week of September and first fortnight of October, 1998, crop damages wereoccurred in southern districts of the State viz. West Godavari, East Godavari, Krishna, Guntur, Prakasam, Kurnool, Anantapur, Cuddapah, Chittoor, Mahaboobnagar, Rangareddy, Nalgonda, Khammam, Nizamabad, Medak and Karimnagar. During the North East Monsoon due to depression which crossed the Andhra coast near Narsapur on 14th October, 1998, heavy rains lashed in most of the districts. During the entire North East Monsoon period the State as a whole received an average rainfall of 300 mm. against the Normal of 206 mms.

Area Under The Crops

The total area under foodgrains in the State which was 68.79 lakh hectares in 1994-95 increased to 73.09 lakh hectares in 1996-97 but has fallen to 65.20 lakh ha. In 1997-98 that too to a rock bottom since 1994-95 due to adverse seasonal conditions. This decline was mainly noticed in the Kharif season which had declined from 46.31 lakh ha. in 1996-97 to 39.89 lakh ha. in 1997-98. Cropwise, among the principal crops the total area declined in the crops such as Rice, Jowar, Bajra, Ragi, Pulses, Groundnut, Castor, Sseasamum, oil seeds etc..

Production of Food Grains

The production of total foodgrains in the State too witnessed similar trends. Though it increased from 117.83 lakh tonnes in 1994-95 to 136.81 lakh tonnes in 1996-97, it has fallen to 108.22 lakh tonnes in 1997-98 mainly due to decline in production both in Khariff and Rabi season of 1997-98. The production of Rice declined from 106.86 lakh tonnes in 1996-97 to 85.10 lakh tonnes in 1997-98. The production of all the major crops like Jowar, Bajra, Maize, Ragi, Pulses, Groundnut, Castor,Seasamum and Oilseeds witnessed fall in output as can be seen from Annexure - VII

Crop Forecast for the Year 1998-99

The advanced estimates of area under the production of principal crops reveal that the area under total foodgrains is expected to increase from 65.20 lakh ha. in 1997-98 to 69.48 lakh ha. in 1998-99. Cropwise the area covered under rice is expected to increase to 40.90 lakh ha., Groundnut to 19.75 lakh ha. However the area under Pulses is expected to decline from 15.65 lakh ha. in 1997-98 to 14.55 lakh ha. in 1998-99. The production of foodgrains is expected to increase from 108.22 lakh tonnes in 1997-98 to 133.50 lakh tonnes in 1998-99. This increase is mostly expected in Kharif production. The production of Groundnut is expected to rise to 20.17 lakh tonnes in 1998-99.

Land Holdings

Size of Holdings

Success in agriculture depends to a considerable extent upon the size of the unit of cultivation. The data on Land holdings in the State was collected from 1970-71 as part of World Agricultural Census. The present census relates to 1995-96. According to the census of land holdings, the average size of the land holdings in Andhra Pradesh was 1.36. The distribution of land holdings and their size classes of area is as follows:

Table - 3.2

Distribution of Land Holdings by Size Class


Size of holdings.

No. of holdings (in lakhs)

% to Total

Area (lakh hectares)

% to Total

Average Size of Holding (in hectares)
















Semi -Medium



























Source:- 1) Directorate of Economics and Statistics, Government of Andhra Pradesh Hyderabad .

According to 1995-96 census of land holdings, there were 106.00 lakh holdings comprising 143.7 lakh hectares. 59.4 percent of the holdings were below one hectare and the total area under them was one-fifth of the total extent The area under semi - medium holdings was the highest at 26 percent. The area under small and medium holdings were equal at 22.5 percent. Though large holdings accounted for a minimum of 0.83 lakhs with an area of 12.71 lakh hectares, the average size of holdings in this class is worked out to 15.37 hectares, the minimum being in marginal holdings (0.46 lakhs).

Seed Distribution

During the year 1997-98, 11.33 lakhs Qtls. Of seed (Kharif 8.72 lakh Qtls. And Rabi 2.61 lakh Quintals) of various crops were made available as against the target of 10.08 lakh Qtls. (Kharif 7.71 lakh Qtls. And Rabi 2.37 lakh Qtls.). While 8.74 lakh qtls. of seed was made available to the farmers during Khariff 1998. It is proposed to make available 5.18 lakh quintals of seed during Rabi 1998-99. Out of this a quantity of 3.34 lakh quintals of Paddy seed is proposed for distribution during Rabi 1998-99 as can be seen from the following table.

Table - 3.3

The Seed Distribution From 1996-97 to 1998-99

(In lakh quintals)

1996-97 1997-98   1998-99 (upto Oct.98)
CROP Kharif Rabi Total Kharif Rabi Total Kharif Rabi Total
1. Cereals& Millets. 3.9842 1.47330 5.45750 5.053 1.406 6.459 5.058   5.058
2. Pulses 0.25200 0.29000 0.54200 0.257 0.328 0.585 0.258   0.258
3. Oilseeds 3.16500 0.84670 4.01170 3.201 0.881 4.082 3.202   3.202
4. Fibre crops 0.21600 0.21600 0.22 0.206 -- 0.206 0.226   0.226
TOTALS: 7.61720 2.61000 10.22720 8.717 2.615 11.332 8.744   8.744

Sorce:Commissioner and Director of Agriculture, Government of A.P. Hyderabad


One of the surest methods of increasing agricultural production is by the use of Chemical fertilisers. Extensive and intensive propaganda work was undertaken by the Government to popularise the use of fertilisers among the farmers.During the year 1997-98, there was a fall in the consumption of Nitrozenous fertilizers and increase in Phosphoric and Potassium Fertilizers as compared with the consumption of 1996-97 as detailed below, due to implementation of I.N.M. practices in the State:

Table - 3.4

The Consumption of Fertilizers In The State

Product % of decrease/increase in consumption during 1997-98 over 1996-97.
1. Urea - 17.00 %
2. Amm. Sulphate - 28.00%
3. C.A.N. - 7.50%
4. D.A.P. 20.30%
5. S.S.P. 14.00%
6. M.O.P. 22.20%

Sorce:Commissioner and Director of Agriculture, Government of A.P. Hyderabad

The consumption of fertilizers in the State from 1995-96 to 1998-99 is given in the following statement:

Table - 3.5

The Consumption of Fertilizers in The State from 1995-96 to 1998-99

In Tonnes





Total NPK





















(Position upto October, 1998)

Source:- Commissioner and Director of Agriculture, Government of Andhra Pradesh Hyderabad .


High Yielding Variety Programme

The High Yielding Variety Programme (HIV) was initiated in the State in the year 1966-67 with the main objective to cover maximum area with high yielding varieties of five crops viz., Rice, Wheat, Jowar, Bajra and Maize to increase the production. The total actual area covered under high yielding varieties programme in the State during 1997-98 was 36.44 lakh hectares against target of 52.54 lakh hectares in 1997-98. Reduction in HYV area coverage during 1997-98 was due to drought situation prevailed in the State. During Khariff 1998, the total actual area covered under HYV programme is 28.23 lakh hectares as against the target of 35.88 lakh hectares. The actual area covered in case of Rice is 22.87 lakh hectares followed by Jowar 2.38 lakh hectares, Bajra 2.30 lakh hectares, Maize 0.68 lakh hectares.

The following table gives the details of targets and achievements of area coverage under high yielding varieties for the specified crop from 1995-98 to 1998-99:
  (000' Hectares.)


1995-96 1996-97

Crop Target Achievement Target Achievement














1.Paddy 2952 948 3900 2030 812 2842 2900 1040 3940 2473 1212 3692
2.Wheat -- 12 12 -- 9 9 -- 11 11 -- 7 7
3.Jowar 598 262 860 223 250 473 550 550 1100 285 290 575
4.Bajra 240 -- 240 108 -- 108 183 -- 183 72 -- 72
5.Maize 238 62 300 191 64 255 270 60 330 252 70 322
TOTAL 4028 1284 5312 2552 1135 3687 3903 1661 5564 3082 1579 4668
1997-98 1998-99
Crop Target Achievement Target Achievement
Kharif Rabi Total Kharif Rabi Total Kharif Rabi Total Kharif Rabi Total
1.Paddy 2662 1000 3662 1963 882 2845 2618 1100 3718 2287 -- 2287
2.Wheat -- 12 12 -- 7 7 -- 12 12 -- -- --
3.Jowar 550 550 1100 245 283 528 550 550 1100 238 -- 238
4.Bajra 150 -- 150 45 -- 45 270 60 330 230 -- 230
5.Maize 270 60 330 159 60 219 150 -- 150 68 -- 68
TOTAL 3632 1622 5254 2412 1232 3644 3588 1722 5310 2823 -- 2823

Source:- Commissioner and Director of Agriculture, Government of Andhra Pradesh Hyderabad

Crop Insurance

Comprehensive Crop Insurance Scheme:

The Government of India introduced the Comprehensive Crop Insurance Scheme for farmers with effect from Kharif, 1985. The scheme is administered through the General Insurance Corporation of India. The basic objectives of the scheme is to provide financial support to the farmers in the event of a crop failure on account of natural calamities, restores credit eligibility of farmers after a crop failure and stimulate production of Cereals, Pulses and Oil seeds. The scheme covers those farmers who obtain loans from Commercial Banks, Cooperative or Regional Rural Banks for raising Paddy, Wheat, Millets, Oilseeds and Pulses crops. The coverage of risk in respect of crops insured is shared between Central Government and State Government in the ratio of 2:1.

The number of farmers covered under Comprehensive Crop Insurance Scheme in Andhra Pradesh increased from 2.89 lakhs in 1990-91 to 12.98 lakhs in 1997-98 and the area covered rose from 4.78 lakh hactares. to 21.10 lakh hactares. The premium collected from these farmers rose from Rs.195.95 lakhs in 1990-91 to Rs.1303.10 lakhs in 1997-98. The total compensation paid to these farmers has gone up from Rs.478.18 lakhs in 1990-91 to Rs.8952.52 lakhs in 1997-98. The progress of implementation of Comprehensive Crop Insurance Scheme in Andhra Pradesh from 1990-91 to 1997-98 is shown in Annexure - VIII .


In India, Andhra Pradesh occupies prime place in the cultivation of Horticulture crops like fruits, vegetables, spices, oil palm and flowers. About 12.46 Lakh Hectares are under various Horticulture Crops with a production of 54.44 Lakh tonnes and 7,960 Lakh Coconuts. Horticulture Sector is expanding at a faster rate because of its potential to give better returns. The scope for value addition and role of Horticulture crops in Industry. Trade and Commerce is being realised gradually because of their export potential. With rich soils, abundant groundwater, adequate rainfall, favourable agro-climatic conditions etc., Andhra Pradesh has still vast potential for bringing large areas under Horticulture Crops to improve the economy of the State. Andhra Pradesh is exporting fresh fruits, vegetables, cut-flowers seed cashew kernels and its products, spices and their products and processed products of fruits and vegetables. During 1995-96, 1.85 lakh tonnes of Horticultural products have been exported besides 13.72 Lakh no.of cutflowers and tissue culture plants valued at Rs.86.20 crores.

The details of area and production of important crops are as follows:

In Andhra Pradesh the total area under Horticulture comes to 12.46 Lakh Ha. and production comes to 54.44 M.Ts. during 1997-98.


Area and Production of Horticulture Crops In A.P. 1997-98



Name of the spices

Area in
lakhs hect.

In tonnes










































Oil palm












Coconut (lakhs nuts)



Source: Director of Horticulture Government of Andhra Pradesh Hyderabad.



Fisheries is concerned with economic exploitation of aquatic productivity. Like land , water is also capable of producing organic matter which can be converted into fish and prawns which are valuable from the nutrition point of view since they are rich in proteins. In the context of a chronically protein deficient diet of the majority of people in Andhra Pradesh, the production of protein food like Fish needs special attention. So fisheries and its development should form an important aspect of planning in a socialistic pattern of society, so as to provide cheap protein food especially to the poorer sections of the society. The State of Andhra Pradesh is unique in having fisheries resources in both marine and inland areas. It has a long coastline of 974 Kms. with a continental shelf of 33,227 Sq.Kms. The inland resources comprise rivers, reservoirs, lakes, tanks, ponds and other water areas. These provide immense scope for fisheries development in the State.

The fish production from inland water resources increased from 2.07 lakh tonnes in 1996-97 to 2.26 lakh tonnes in 1997-98. The Value of the inland fish produced also increased from Rs.639.42 Crores in 1996-97 to Rs.804.33 Crores in 1997-98. The Marine fish productions has declined from 1.52 lakh tonnes in 1996-97 to 1.47 lakh tonnes in 1997-98, but its value rose from Rs.434.95 Crores in 1996-97 to Rs.520.02 Crores in 1997-98 as can be seen from the following table.


Production & Value of Fisheries In Andhra Pradesh

(Lakh Tonnes)
(Lakh Tonnes)
1990-91 1.36 311.46 1.16 221.64
1991-92 1.39 249.98 0.99 158.62
1992-93 1.51 398.68 1.42 292.78
1993-94 1.67 384.76 1.54 373.27
1994-95 1.95 542.82 1.50 379.98
1995-96 2.04 556.97 1.52 391.63
1996-97 2.07 639.42 1.52 434.95
1997-98 2.26 804.33 1.47 520.02

Source: Commissioner of Fisheries, Government of Andhra Pradesh Hyderabad



Forests play a vital role in changing the hostile carbondioxide laden atmosphere which earlier enveloped the earth's surface into a more Oxygen bearing atmosphere, and set the stage for the emergence of animal life and ultimately evolution of man. Even today, Forests play an important role in moderating the climate , maintaining the soilmantle, improving soil fertility, purifying the air and in regulating the flow of water in rivers and streams. If these intangible benefits could be monetised the contribution of forests would be stupendous and would far out weigh the direct benefits to the fuel wood, timber and other forest produce which we get from forests.

Andhra Pradesh has 63,814 Sq. Kms. of Forest area constituting 23.2 percent of the total geographical area of the State. The income accrued from forestry sector in the state was Rs.101.08 crores in 1997-98.

Out of the total forest area of 63,814 Sq. Kms. Reserved Forest area accounted for 50,478 Sq. Kms., Protected forest forms 12,365 Sq. Kms. and the rest 971 Sq.kms are unclassified. Out of the total forest area of 63,814 Sq. Kms. the Telangana Region has a forest area of 29,242 Sq. Kms. followed by Coastal Andhra 19,563 Sq. Kms. and Rayalaseema 15,008 Sq. Kms. The forest Products in the state include Timber, Firewood, Charcoal, Bamboo, Beetle leaves etc.

The following table gives the details of value of forest products in the state.

Table - 3.9

Value of Forest Produce In Andhra Pradesh

(Rs. in Lakhs)

ITEM 1992-93 1993-94 1994-95 1995-96 1996-97 1997-98
Timber 3462.26 2246.71 2054.68 2052.94 17095.30 2082.19
Bamboo 1693.64 2106.43 2729.58 3116.75 2820.35 2658.54
Firewood & Charcoal 28.40 37.29 233.05 33.27 51.080 95.30
other forest produce 53.10 41.19 36.01 1614.84 53.15 44.91
Beedi leaves 1921.42 1789.03 2776.46 2284.04 1800.00 2408.99
Miscellaneous 2019.46 908.95 1621.36 1537.82 1176.96 1176.83
Nehru Zoo Park 3.69 2.20 1.25 62.74 71.06 87.82
Other Parks 3.06 4.18 0.44 8.57 9.63 12.44
Grand Total 9649.11 7043.66 10025.16 12142.45 9589.43 10115.13
Deduct Funds 0.16 0.34 0.71 1.09 4.26 6.76
Total 9648.95 7043.32 10285.45 17141.35 9585.13 10108.37

Source: Principal Chief Conservator of Forest, Government of Andhra Pradesh, Hyderabad

The following table gives the region-wise details of Forest area in the State.

Table -3.10

Region - Wise Forest Area - 1997-98

S.No. Region Land Area Forest Area % of Forest Area Region wise % of Forest Area to land Area
1 Coastal Andhra 92906 19563.25 30.66 21.06
2 Rayalseema 67299 15008.40 23.52 22.30
3 Telangana 114863 29242.08 45.82 25.46
  Total 275068 63813.73 100.00 23.20

Source: Principal Chief Conservator of Forest, Government of Andhra Pradesh, Hyderabad

There are eight major wood industries in the state. The Net use , Production capacity, type of Raw Material used and Raw materials assured to Forest department in the state is shown the following table.

Table -3.11

Major Wood Based Industries

S.No Name of Industry Nature Production Capacity Type of Raw material Raw material assured by Forest dept.
1 Andhra Pradesh Paper Mills, Rajahmundry Paper 101447 TPA Bamboo 75000 M.T.
2 Bhadrachalam Paper Board Ltd. Paper 81944 Bamboo 60000M.T.
3 Sirpur Paper Mills, Kagaz Nagar Paper 71000 Bamboo 70000 M.T.
4 Sri Rayalseema Paper Mills. Kurnool Paper 42000 TPA Bamboo 25000
5 Andhra Pradesh Rayons Ltd., Eturnagaram, Warangal . Rayan Grade pulp 26250 TPA Hardwood Eucalyptus No material is being supplied by Forest Dept.
6 Navopan India Ltd., Patancheru. Particle Boards 19200 TPA Hard wood  
7 Godavari Plywood Ltd., Rampachodavaram and Plywood 15 Square Mts(6000 Cum.) Non-Teak  
8 Hyderabad Plywood Ltd., Nacharam Plywood 1.6 lakh Sq. Mts. (6.40 Cumts) Timber Non teak  
TPA…. Turn Over per Annum
Source: Principal Chief Conservator of Forest, Government of Andhra Pradesh, Hyderabad
The State has three well developed Zoological parks one at Hyderabad, Visakhapatnam and Tirupathi. There are 13 Deer Parks in the State. Under Social Forestry, a sponsored scheme oriented on 50:50 Fuel and fodder sharing basis between State and Centre is being implemented in the State. Activities like plantations in the degraded forest area besides taking up afforestation in private field is being taken up and 1454.63 lakh seedlings (upto Oct. 1998 ) have been raised in the state to take up planting in public places and to meet public distribution. The whole programme is to be taken up with people's participation under Janmabhoomi Nursery Programme. Massive Afforestation of plants in the State is proposed to be taken up through ‘Shramadan' by the people. The Forest Department would provide all Technical inputs apart from raising seedling through beneficiary oriented nurseries specially by Scheduled Castes, Scheduled Tribes and women.

Animal Husbandry

The Animal Husbandry sector plays an important and vital role in providing good animal proteinous food, to the general public and good supplementary income to the economically weaker sections of society. In addition, it offers a good employment generation potential, if adopted on a larger commercial basis. Despite mechanisation in various agricultural operations, draught animal power still plays a very significant and vital role. Bullock is the main source of draught power in agricultural operations and transport of agricultural produce to the nearby markets. Besides Cattle, horses, donkeys and camels are other important effective draught animals. A large number of rural women folk finds good opportunity to work in several operations of livestock production. Moreover, the agricultural production programme gets valuable organic manure provided by the livestock. It is also useful for bio-gas production which is good source of non-conventional energy used for domestic cooking and lighting.


Andhra Pradesh is well known for its livestock wealth. The State has the world famous breed of Ongole Cattle and Aseel breed of poultry, which is the principal source for the development of broiler breeds in the world. Andhra Pradesh is also famous for Nellore breed of Sheep which is well known for quality mutton production.

Presently Andhra Pradesh stands first in poultry population (498.84 lakhs) second in buffalo (91.40 lakhs) and sheep population (77.87 lakhs) third in pig population (6.48 lakhs) fourth in bovine population (200.79 lakhs) and seventh in goat population (43.29 lakhs) in the country.

Trends In Live Population

During the period from 1956 to 1983, buffalo and cattle population increased by 46percent and 17percent respectively. During 1983-19934 buffalo population has marginally increased by 5percent but the cattle population decreased by 18percent, while there is an increase of 23percent in crossbred cattle and decrease of 13percent in non descript cattle. Adult female cross breed cattle have increased by 44.7percent between 1987-1993.

The most significant trend has been the remarkable increase in female buffaloes by 97percent. There is an increase in female young stock and decrease in male young stock. The trends reflect a change in priority from draught animal production to milch animal production.

The sheep population remained more or less constant, while there is slight increase in goat population. However the most significant growth is seen in poultry with a fourfold increase in their population.

The growth of Animal husbandry institutions in Andhra Pradesh from 1990-91 to 1998-1999 are given in Annexure - IX

Table - 3.12

Livestock Population, Over Various Censes Periods

Number in lakhs

S.No Livestock 1956 1961 1966 1972 1977 1983 1987 1993
1. Cattle 112.76 123.45 123.41 125.07 120.40 132.20 123.74 109.47
2. Buffaloes 59.67 69.48 67.90 70.56 71.62 87.03 87.57 91.32
3. Total Bovines 172.43 192.93 191.32 195.64 192.02 219.23 211.23 200.79
4. Sheep 78.46 83.63 80.03 83.43 70.64 75.18 68.71 77.87
5. Goat 36.93 42.46 37.58 43.80 43.69 54.59 48.75 43.29
6. Pigs 6.2 5.9 5.82 6.9 7.55 7.86 7.24 6.48
7. Poultry 147.37 162.48 147.14 190.47 216.08 323.91 390.50 498.84

Source: Directorate of Economics and Statistics, Government of A.P., Hyderabad


Animal Health Netwok

Over the last five decades, the animal health sector has untiringly worked to lay strong foundation of effective animal health network to facilitate animal production to take off. Since the formation of Andhra Pradesh (1956) and with the advent of five years plans, rapid strides were made in the animal health care by opening number of veterinary institutions in remote areas in the State.

In the beginning of the First Five Year Plan there were barely 8-10 veterinary institutions in each district and about 200 institutions in the entire State providing Veterinary Aid covering to about 60-70 thousand cattle units under each institution. The health care facilities have increased during the subsequent plan periods resulting in a phenomenal growth of veterinary institutions from 285 during 1956-57 to 5000 during 1997-98. The cattle units covered now by each graduate institution are about 10,000 and by including rural livestock units the coverage goes down to 5000 each.

At present veterinary health cover is provided by 5000 field Veterinary Institutions comprising of 2588 Rural Livestock Units manned by para vets, 1642 Veterinary Dispensaries manned by Veterinary Assistant Surgeons 260 Taluk Level Veterinary Hospitals manned by Assistant Directors and 20 Veterinary polyclinics at district level manned by Deputy Directors and are functioning as referral District Hospitals providing specialised services in Gynaecology, Surgery and Medicine with X-ray and inpatient facilities.

There are 22 Animal Health centres functioning, one each at district headquarters with facilities for disease investigation, quick diagnosis and for mapping out the diseases to render timely and effective control measures. These are the district referral laboratories for effective diagnosis and vaccine distribution work. Four Mobile Veterinary Labs are functioning for sero-surveillance work.

Veternary Biological Reseach Institute

Veterinary Biological Research Institute, Hyderabad which was initially called as serum institute, was established during the year 1944. The main objectives of this institute are vaccine production and disease investigation. For control of major livestock and poultry diseases the required quantity of vaccines are produced at VBRI and poultry vaccine production unit at Samalkot. This institute has technological infrastructure to produce upto even 800 lakh doses of 14 different varieties of bacterial and viral vaccines required for the Livestock in the State in a year.

There is a separate full fledged and independent unit for testing and Standardisation of vaccine produced and has been working since 1978 to ensure high safety and potency of the vaccines produced at VBRI.

The disease investigation wing at VBRI is manned by specialists for cattle, sheep, goat and poultry and for diseases of National importance like TB., Brucellosis etc. A new dimension towards control of Zoonotic diseases was added during the year 1982-83 with the establishment of a Sero-diagnostic laboratory for Japanese Encephalitis at VBRI in collaboration with Medical and Health Department.

Under Andhra Pradesh Netherlands Scheme, four prestigious and novel vaccine production projects have been taken up at V.B.R.I. to manufacture (1)TC sheep pox vaccine (2) Inactivated TC AR vaccine (3)HS-BQ combined vaccine and (4) concentrated ET vaccine

Livestock Farms

The breeding activities are well supported by 12 Livestock Farms in the State for producing and supply of pedigreed breeding bulls. One large scale Jersey Cattle Farm was established in 1976 at Banavasi with Jersey Cattle imported from Australia. Ongole Cattle farm at Ramathirtham was started during 1979-80 to preserve and develop Ongole breed of cattle. One central herd registration scheme to locate Ongole Germplasm is operating at Ongole since 1962-63.

Table - 3.13

The Progress of Bovine Breeding Programme In Andhra Pradesh

YEAR Artificial Insemination Centres.(No.) Artificial Insemination Done (Lakhs) Calves Born (Lakhs)
1956-57 34 0.08 0.03
1961-62 296 0.55 0.16
1968-69 1063 2.39 0.72
1973-74 1487 3.33 0.84
1978-79 2290 4.08 0.79
1984-85 2679 9.52 2.44
1989-90 2690 14.95 4.00
1996-97 3099 17.44 5.12
1997-98 3327 19.42 5.23

Source: Directorate of Animal Husbandry, Government of Andhra Pradesh, Hyderabad


Fodder Development for Higher Production

The present fodder production in the State is only marginal. By and large the Cattle, Buffaloes, Sheep and Goat subsist on crop residues. Fodder is grown in only 3 percent of the agricultural land as against 8 percent recommended. As such the State is facing deficit of about 100 lakh metric tons of fodder every year and milk production is seriously constrained due to this deficit. The thrust of the department has therefore been on promoting nutritious fodder production by popularising the cultivation of high yielding fodder and pasture varieties and distribution of different varieties of fodder seed. Fodder production is also being taken up on large scale utilising waste lands, community lands and fallow lands. Silviculture and horticulture development is undertaken by DRDA, DPAP and Vanasamrakshana Samithis.

Poultry Development

The Development of poultry industry is spectacular in Andhra Pradesh which occupies top rank in both egg and broiler production . The process of transformation of poultry farming from a mere backyard poultry to the present vibrant and dynamic commercial enterprise started from 1960 onwards with the introduction of deep litter system of high layer commercial poultry rearing. In seventies, introduction of modern scientific techniques of poultry management and California cage system of poultry rearing has completely revolutionised the poultry farming in the State. Special emphasis was laid by the Government on poultry farming as an instrument of social justices and powerful tool to fight against mal-nutrition, un-employment and under employment. The formation of Meat & Poultry Development Corporation in 1977 was an important milestone in poultry development in the State especially in rural areas.

Table - 3.14

The Growth of the Poutry Production in the State

S.No Particulars 1966 1976 1977 1985 1998
1. Improved layers (millions) 1.5 2.5 10.0 13.00 40.00
2. Broilers (millions) -- 0.20 1.0 6.0 60.00
3. Egg production (millions) 300 600 2400 3100 5752
4. Per-capita of eggs (Nos.) 4 10 15 20 75

Source: Directorate of Animal Husbandry, Government of Andhra Pradesh, Hyderabad.

The production estimates of Milk, Meat, and Eggs in Andhra Pradesh are based on Integrated Sample Survey is given in Annexure - X .

Andhra Pradesh State has emerged as the egg basket in the country conatributing 26 percent of total egg production in the country. There are about 50 poultry hatcheries producing 600 lakh broiler chicks and 450 lakh layer chicks. Presently there are about 25,000 poultry farms engaged in poultry production creating additional employment to 3.20 lakh persons in production, marketing, hatcheries, equipment manufacturing etc. A total of 10 lakh tons of manure equivalent to 4 lakh tons of synthetic fertilizer is produced in the State every year. At present the capital investment is at Rs.1500 crores and value of eggs, poultry meat etc is Rs.3000 crores annually.

Piggery - An Important Source of Animal Protein

At the time of formation of Andhra Pradesh there was no piggery development activity. In view of the importance given in the national programme for improvement of subsidiary food production of animal origin, action was initiatged in this direction by establishing a Regional Pig Breeding Station cum Bacon Factory at Gannavaram during 1963-64. Soon it developed into one of the premier institutions of its kind in the country. Under its auspices several piggery development and marketing activities were ushered in giving a tremendous boost for piggery development.

Ancillary to this factory, 5 pig breeeding farms located at Pedavegi, Gopannapalem, Muktyala, Gannavaram and Vijayanagaram were established maintaining exotic Large while yarkshire. Landrace and Hampshire breeds. A large number of these pigs were supplied to the big breeders to take up pig rearing. Training was also imparted to the pig breeders of the State. Youth trained in the piggery had taken up gainful self employment in pork marketing centres.

Animal Husbandry Vision 2020

The Main objective of the Vision 2020 is to consolidate the gains made and to transform Animal Husbandry Sector into profitable livestock agricultural business to further strengthen the rural economy. To achieve this objective of the Vision 2020 the following issues need to be addressed: Tapping the untapped potential in Animal Husbandry Sector. Restructuring and revitalizing the credit institutions. Revitalizing the research, technology and extension to the growing demand. Working out strategy for upgradation of existing livestock for higher production. Exploring the scope and need for increased private participation in ensuring veterinary health care, disease control utilising latest biotechnologies. Formulating new strategies for scientific feed and fodder development. Evolving innovations relevant to the needs of 2020 A.D. Exploiting marketing avenues for Livestock and Livestock products through development of rural marketing grid. Spelling out policy interventions to harness potentialities of dairy development.

Table - 3.15

Vision 2020 Production Targets

Livestock Product 1998 2002 (end of 9th Plan) 2020
Milk (Million Tons) 4.5 5.65 8.7
Eggs (In Millions) 5752 6300 12500
Meat (in Thousand Tons) 106 112 200

Source: Directorate of Animal Husbandry, Government of Andhra Pradesh Hyderabad .


Sericulture is an Agro based labour intensive industdry providing gainful employment mostly to rural people. Andhra Pradesh occupies second position in the country in production of silk. Sericulture enterprise in its totality is a long chain industry.

On the farm two basic biological processes are put into operation one is mulberry culativation and another is cocoon production. On the Non-farm, industrial activities such as silk reeling, twisting, processing, weaving etc. are involved.

In Andhra Pradesh, Sericulture is mostly concentrated in the Rayalaseema region. The area covered under Mulberry cultivation in the State was 99,733 acres during 1998-99 (upto August, 98) against 95,211 acres is 1996-97. The production of Reeling Cocoons increased from 22,491 tonnes in 1997-98 to 24,809 in 1998-99. The Mulberry raw silk production increased from 2,444 tonnes in 1996-97 to 2696 tonnes in 1997-98. The details of area covered under Mulberry cultivation, production of Reeling Cocoons and mulberry raw silk produced in the State during 1997-98 and 1998-99 (upto August,. 98) is given in the following table.

Table - 3.16

Production of Reeling Cocoons and Raw Silk In Andhra Pradesh

Year Reeling Cocoons (in tonnes) Mulberry Raw Silk (in tonnes)
1990-91 32,262 2,933
1991-92 26,998 2,454
1992-93 36,414 3,138
1993-94 24,511 2,228
1994-95 22,541 2,250
1995-96 21,721 2,361
1996-97 22,491 2,444
1997-98 24,809 2696
1998-99 (upto Aug 1998) 9,108 990

Sorce: Commissioner of Sericulture, Government of A.P. Hyderabad.