How an index theory used in Agriculture sector.

1. INDEX OF AGRICULTURAL
PRODUCTION
PRESENTED BY :- HIRAL ANGHAN
ROLL NO :-01

2. Contents
• Introduction
• Types of index of Agricultural production.
• Example
• Uses of Agricultural index.
• References

3. Introduction
• Index Numbers in Agriculture are required in
order to study the trends over time in respect
of area, yield, production, productivity, prices,
etc. and for studying the comparative picture
of the performance of agricultural sector.

4. Types of Index of Agricultural
Production
• Ministry of Agriculture Series
• Reserve Bank of India Index.
• Food and Agricultural Organisation Index.

5. • The base year for the present series of “Index of
Area, Production and Yield in Agriculture” is must
be such as to be in harmony with the other
series of indices such as Index of
Industrial Production, Wholesale Price Index and
other series of National Accounts Statistics.
• The index numbers constructed by the Ministry of
Agriculture can be grouped into two broad
categories:
• (a) Index Numbers of Area, Production and Yield,
and (b) Index Numbers of Terms of Trade
between Agricultural and Non-agricultural
Sectors.

6. Index Numbers of Area, Production
and Yield
• Food grains
• Cereals: Rice, Wheat, Jowar, Bajra, Maize,
Ragi, Barley and Small Millets.
• Pulses: Gram, Tur and other pulses.

7. • Non-food grains
• Oilseeds: Groundnut, Sesamum, Rapeseed and
Mustard, Linseed, Castorseed, Safflower, Nigerseed,
Soyabean, Sunflower, Coconut and Cottonseed.
• Fibres: Cotton, Jute, Mesta and Sannhemp
• Plantation crops: Tea, Coffee and Rubber.
• Condiments and Spices: Pepper, Ginger, Garlic, Chillies,
Turmeric, Arecanut, Coriander, and Cardamom.
• Fruits and Vegetables: Potato, Onion, Banana,
Cashewnut, Tapioca and Sweet Potato.
• Other Crops: Sugarcane, Tobacco and Guarseed

8. Example
• Calculate Index Numbers of foodgrains
production for the year 1980-81 with base
year 1979-80=100 from the following data.

9. Production (million tonnes)
1979-80 1980-81
Rice 34 42 53
Wheat 12 29 32
Jowar 5 11 12
Bajra 3 6 5
Other cereals 6 11 12
Pulses 10 10 11

10. Calculations for food-grains production
indices
Productions
(million tonnes)
Weighted production
Food-grains Weight
(w)
1979-80
q0
1980-81
q1
q0w q1w
Rise 34 42 53 1428 1802
Wheat 12 29 32 348 384
Jowar 5 11 12 55 60
Bajra 3 6 5 18 15
Other cereals 6 1 12 66 72
pulses 10 10 11 100 110
=2015 =2443

11. • Qo1k = (Σq1w/ Σq0w) x 100
= (2443/2015) x 100
= 121.2
Hence, indices of foodgrains production for the
year 1980-81 is 121.2

12. Uses of Agricultural Index
• Corp insurance
• For Government Policy
• Survey, Research & Education
• Evaluation of production, Price &
Consumption.
• Problem & Solution for price stability
• Administrative Data (imports & exports)
• Change and trend of agricultural sector.

13. REFERNECES:-
• BOOKS:-
– Fundamental of Applied statistics
• WEBIOGRAPHY:-
– Ministry of Statistics and programme
Implementation.(MOSPI)