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On the bright side, the extremely low poverty compared to the rest of the country is
a welcome sight indeed. The most remarkable aspect has been the consistent
lowering of poverty across both rural and urban areas. In the case of rural area,
poverty ratio, according to Tendulkar methodology and the Tendulkar line ranked by
2009/10 per capita GSDP, has come down from 40.8 in 1993/94 to 26.4 in 2009/10.
In urban areas, poverty ratio has come down from 29.9 in 1993/94 to 19.9 in
2009/10. The impact of the same can be seen when we see the actual poverty
figures, 38.3 in 1993/94 to 24.8 in 2009/10. (Panagriya 2014)
This can only be possible due to the high growth rate in agricultural production in
the time-frame. The carry on effect of the same can be seen in the day to day
activities of the state. According to the latest figures, over 65% of the population i.e.
56.5 million depend directly or allied activities on agriculture for their livelihood.
(GoR: Agricultural Policy 2013)
Now though, the growth rate has become sluggish with the gradual slowing down of
agriculture. It could be owing to some state specific factors such as outmigration,
diversification of household economy and larger size of landholdings. The excess
land provides a cushion through which newer avenues to earn revenue have opened
up. This can be seen with service outpacing agriculture and industry by quite a big
margin. NSDP of agriculture in 2011 stands at 23.77 compared with 47.75 of
services and 28.48 of industries (GoR: Economic Statistics 2013). The nature of
service sector, in the state, though is reckoned to be limited to petty trade and
hospitality. (Singh 2007)
The sluggish growth of agriculture could be owing to varied reasons such as shifting
of oilseeds such as rape and mustard to wheat, without fully understanding the
implications of the decision. Many scholars lament the change. But, they are in full
agreement, that they cannot hold the policy-maker responsible for the shift. A shift
from coarse cereals such as bajra to wheat could have been brought about owing to
change in consumer taste. Not owing to anything else. The lack of substitute crops
has only made matters difficult for the farmers. (Sagar 2007)
Additionally, a cut-out strategy for technology up-gradation and institutional reforms
in the states directives towards credit and marketing remains to be seen.
This increase in instability; has had an adverse impact on the agricultural
production in the state. Its owing to many reasons. The increase of risk in produce,
adoption of high paying technologies and spike of investment are only some of the
reasons that have increased the strain on the farmers. (Chand and Raju 2009)
In this context, the study assesses the transformation.