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This paper examines the performance and challenges to the Telangana agricultural sector. The study using the annual data for the period 2004-05 to 2014-15 reveals that the structural change in the composition of Gross State Domestic Product by Industrial origin is the consequence of the process of economic growth during the last 10 years. In this paper an attempt has been made to study reasons for backwardness of agricultural sector in Telangana economy. The key challenges documented are related with small size of land holdings, low yields and high risk, lack of assured irrigation, growing indebtedness of the farmer households, weak institutions, and poor infrastructure. The study highlights that in order to overcome the challenges and unleash the opportunities, there is a need to reform agriculture sector, invest in agriculture, optimum utilization of micro irrigation potentiality, reprioritize agricultural research, connect invention and innovations, link farmers with markets, strengthen institutions and improve infrastructure.
Introduction
Agriculture has been the backbone of Telangana's economy. In Telangana, the agriculture sector is mainly rain fed and depends to a significant extent on the depleting ground water. Good performance of this sector is vital for inclusive growth. Telangana went in for the Green Revolution in rice cultivation in the 1970s. There have been significant changes in the structure and performance of the agrarian economy in the state in the recent years.
As nearly as 55.49 percent of the state's population is dependent on some form of farm activity for livelihoods, it is imperative to increase the farm incomes and ensuring sustainable growth in Telangana to reduce poverty. Highest priority is accorded to the agriculture sector in the state with the objective of shifting the excess labour force from this sector to other non-farm rural sectors such as rural industry through skill development. Ensuring food security and provision of gainful employment continue to be the essential premise of the socioeconomic development and employment guarantee schemes like MGNREGS and rural livelihoods programmes. The rural areas are the biggest markets for low-priced and middle-priced consumer goods, including consumer durables. Besides, rural domestic savings are an important source of resource mobilization. Any change in the agricultural sector, positive or negative, will have a multiplier effect on the entire economy. Besides, the allied sectors...