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GOVERNMENT of ANDHRA PRADESH
FINANCE DEPARTMENT
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PREVIOUS ECONOMIC TRENDS 1994-95

 
Economic Survey 1994-95

HIGHLIGHTS


Andhra Pradesh lies between 120 37' and 190 54' North Latitude and 760 46' and 840 46' East Longitude. It is bounded on the North by the states of Maharastra, Madhya Pradesh, and Orissa; on the west by Karnataka, and Maharastra and on the south by Tamilnadu and Karnataka. The geographical area of the state, the fifth largest in the country, is 275000 Sq.Kms. The state has the longest coast line (972 Kms.) among all the littoral states in India.

Andhra Pradesh, with a population of 6.65 crores as per 1991 census, is the fifth most populous state in the country. The decadal growth rate of the state is 24.2 which is higher than the all India average of 23.5. About 73 percent of the state's population lives in rural areas. The work participation rate in the state, as per 1991 Census, at 45 percent, is above the All India average of 38 percent.

According to the mid-year population estimates communicated by the Central Statistical Organization, the state's population for 1994-95 is projected at 7.08 crores. The annual growth of population for every 1000 persons is working out to 17.09 persons.

The literacy rate as per 1991 census was 44.09, against 35.66 as per 1981 census, recording an increase of 23.6 per cent. The male literacy rate in the State increased to 55.13 in 1991 with an increase of 24.4 per cent. The female literacy rate increased to 32.72 in 1991. The increase in literacy rate among females at 35.4 per cent was more pronounced than males.

The Net State Domestic Product, at current prices, as per the Quick Estimates for the year 1993-94, registered an increased of 14.5 percent, while at constant prices, the Net State Domestic Product increased by 5.17 percent. The share of Primary Sector in the state income (NSDP), at constant prices, has been declining while that of Tertiary Sector is increasing. The per capita income, at constant prices, increased by 3.38 percent during 1993-94 (Quick Estimates).

The South West Monsoon, which accounts for around 70 percent of the normal annual rainfall, was deficient by 23 percent during Kharif'94 compared to the normal. The rainfall received during the crucial month of June 94 was deficient (-43%) and during September 94, it was scanty (-61%)

During the North East Monsoon, the rainfall received exceeded the normal rainfall by 57 percent. The heavy rains during the period 28.10.94 to 2.11.94 affected standing crops in the East Godavari, West Godavari, Krishna, Guntur, Prakasam, Chittoor and Warangal districts. The good rains during North-East Monsoon (Octo-Dec.) facilitated large scale Rabi sowings, besides, helping improve the drinking water problem.

The estimated food grains production during 1993-94 was 122.54 lakh tonnes as against 116.58 lakh tonnes for 1992-93 registering an increase of 5.1 percent.

Due to the deficit rainfall during the South West Monsoon period, the area under food grains declined during 1994-95 Kharif season to 39.54 lakh hectares registering a fall of 9.5 percent compared to Kharif 93-94.

Andhra Pradesh is the second richest state in India with mineral reserves; next only to Bihar. It has a variety of mineral reserves such as Coal, Manganese, Bauxite, Iron Ore, Mica, Baryte, Asbestos, Lime stone Gold etc.. Of all the minerals Coal is the most important, as it accounts for nearly 80% of the total value of mineral production in the state.

The 15th Quinquinnial livestock census conducted during 1993, with October 15th as the reference date, revealed an increase of 23% in respect of cross-bred cattle (white) and an increase of 69% in case of improved poultry. The increase in the number of tractors was as much as 73% compared to the previous census conducted during 1987.

The Forest cover of 63.81 thousand sq Kms comprising about 23% of the geographical area in the state, constitute the second most important natural resource of Andhra Pradesh after minerals. The total value of forest produce as per the latest estimate is Rs.84.49 Crores.

The index of industrial production during 1993-94 showed an increase of 10.6 percent oer 1992-93. The index number of industrial production during Aprial to December, 1994, decreased by 10.0 percent.

The installed generating capacity of power in the state increased to 5626 MW, by the end of 1993-94; the addition being 546 MW. Power generation during 1993-94 increased to 19272 MKWH from 17872 MKWH during 1992-93. Power consumption during 1993-94 was 21.21 billion KWH. A total of 15.01 lakh agricultural pumpsets were energised by end of March, 1994 registering an increase of 7.4 percent. Around 60 percent of the hamlets and 93 percent of Harijanwadas have already been electrified by the end of March'94.

There is a major port at Visakhapatnam handling a cargo of 185.54 lakh tonnes. At Kakinada minor port a cargo of 18.07 lakh tonnes was handled. There are a number of other intermediate and small ports such as machilipatnam along the coast line.

A total length of 1,37,476 Kms of Road are maintained by the state, of which State Highways comprise 41,395 Kms, National Highways 2,587 Kms and District Roads constitute 93,494 Kms. Railway Routes cover 5,046 Kilometers, of which around 4,000 Kms are Broadguage lines. There are 650 Railway Stations in the state.

The Andhra Pradesh State Road Transport Corporation (APSRTC) had 15484 vehicles on road carrying over 104 lakh passengers daily at the end of December 1994.

Due to strikes and industrial lockouts, about 14 lakh mandays were lost, in the industrial sector, during April-September 1994. The Number of mandays lost due to work stoppages during 1993-94 were 24.15 lakhs compared to 25.60 lakh mandays; the decrease being 5.6%.

A total number of 38521 Fair Price Shops are functioning in the state, of which 31,303 are in rural areas. They serve besides others, 99 lakh white card holders, who are eligible for 25 kgs rice a month at Rs.2/- a Kg.

The wholesale price index for agricultural commodities moved up by 10 percent during October 1993 to October 1994. During the same period the rise in the consumer price index for agricultural labour was 17.09 percent. The Consumer price Index for industrial workers and urban non-manual employees increased by 10.0 and 10.5 percent respectively.

The number of Scheduled Commercial Bank Offices in the state, as on 30.6.1994, were 4782 - an increase of 2 percent over last year, About 56 percent of the bank Offices were in the rural areas, sharing about 17.4 percent of total deposits and and 19.8 percent of the total outstanding credit, as on June 1994.

An amount of Rs.226.05 crores was advanced as long term loan during 1993-94 by Andhra Pradesh Co-operative Central Agricultural Development Bank (APCCADB). The Commercial Banks advanced Rs.1558 crores towards ascroploansand Rs.448 crores as Agricultural term loans, respectively.

HUMAN RESOURCES

According to 1991 census, the population of Andhra Pradesh is 6.65 crores. The state continues to be the 5th largest state in India. The density of population at 242 persons per square kilometre is lower than the all India average of 276. The data on population characteristics of Andhra Pradesh from 1951-1991, some important population characterstics of the state and all India (1991 census) and working population in Andhra Pradesh are given in Annexe 1,2 and 3 respectively.

The decadal growth rate of population during 1981-91 is 24.2 percent which is marginally higher than the all India growth rate of 23.5 percent. This shows a reversal of the situation observed during the preceding three decades.

 

Decadal Growth rate of population

Decade

Andhra Pradesh

All India

1951-61

15.6

21.5

1961-71

20.9

24.8

1971-81

23.1

24.7

1981-91

24.2

23.5

 
The regional distribution of population and growth rates in the state is as follows:
 

Year

Population (000s)

Growth rate (5)

 

Andhra

Rayala
seema

Telangana

Total

Andhra

Rayala
seema

Telangana

Total

1951

14597

5619

10899

31115

 

 

 

 

1961

16403

6586

12694

35983

14.43

17.21

16.47

15.64

1971

19743

7942

15818

43503

18.20

20.59

24.61

20.90

1981

23743

9626

20181

53550

20.26

21.20

27.58

23.09

1991

28373

11686

26089

66508

19.50

21.40

29.28

24.20

 
The Urban and Rural population during 1991 stood at 178.87 lakhs (26.89 percent) and 486.21 lakhs (73.11 percent), respectively, as against 23.32 percent and 76.68 percent during 1981. The decadal growth rate of Urban and Rural population during 1981-91 was 43.23 percent and 18.41 per cent respectively.

The working population in 1991 was 299.64 lakhs forming 45.05 per cent of the total population as against 45.76 percent in 1981. There was thus a slight decline in the percentage of working population in 1991 compared to 1981. The female working population increased from 33.54 percent in 1981 to 34.32 percent in 1991. The percentage of male working population was 55.48 percent in 1991 as agaomst 57.68 in 1981. The work participation of male workers in rural areas declined by nearly 2 percent whereas the work participation of female workers in teh rural areas increased by nearly 2.5 percent. Significantly there was an increase of nearly 4 percent in the work participation of female main workers in the rural areas which was 36.11 percent as per the 1991 census as against 31.95 percent in 1981. The percentage of main workers to total population has slightly increased from 42.26 to 42.77, which is the highest among major states. The percentage of marginal workers to total population has declined from 3.50 in 1981 to 2.28 in 1991.

The work participation rate in the state (45.05) is far ahead of the work participation rate at all India (38.03). The state had recorded the highest work participation rate for both males and females among all major states. The percentages of working population in the state among males at 55.48 and females at 34.32 are higher than the corresponding percentages (i.e 52.00 and 22.96) at all India level.

The population of cultivators among total main workers has declined from 32.74 percent in 1981 to 27.74 percent in 1991. The 5 percent decrease in the proportion of cultivators has almost been made up by 4 percent increase in the proportion of agricultural labourers which has increased from 36.79 percent to 40.86 percent. The proportion of agricultural labourers to all main workers in the state is the highest among all states. The cultivators and agricultural labourers together constitute 80.80 percent of the main workers in the rural areas in 1991 as against 80.40 per cent in 1981.

The sex ratio, in 1991 was 972 females for 1000 males, as compared to all India average of 927.

The death rate which was 15.7 per 1000 in 1957 decreased to 9.7 in 1991 while the birth rate which was 28.8 in 1957 decreased to 26.0 in 1991. The infant mortality rate which was 92.6 per 1000 live births in 1957 decreased to 73 in 1991.

NET STATE DOMESTIC PRODUCT


Net State Domestic Product is estimated both at current and constant prices from 1980-81 to 1993-94, with base year 1980-81 (Annexe IV to VI).

The Net State Domestic Product (NSDP) at current prices is estimated at Rs.39,466.58 crores in 1992-93 (provisional) as against Rs.37,343.96 crores in 1991-92 registering an increase of 5.7 percent. Net State Domestic Product at constant prices has been estimated at Rs.11,751.61 crores in 1992-93 (provisional) as against Rs.12,020.38 crores in 1991-92 showing a decline of 2.2 percent.

As per the quick estiamtes for the year 1993-94, the Net State Domestic Product at current prices is Rs.45,187.44 crores, as against Rs.39,466.58 crores during 1992-93 registering an increase of 14.5 percent. The Net State Domestic Product at constant prices is estimated at Rs.12,358.75 crores during 1993-94, as against that of Rs.11,751.61 crores during 1992-93 showing an increase of 5.17 percent.

The composition of NSDP at constant prices reveals an increasing trend in the Tertiary Sector, while the primary sector is declining. The details are as follows:

 

Composition of NSDP at constant (1980-81) prices

(Rs. crores)

S.No.

Sector

Andhra Pradesh

All India

 

 

1991-92
(R)

1992-93
(P)

1993-94
(Q)

1991-92
(R)

1992-93
(P)

1993-94
(Q)

1.

Primary

4820
(40.10)

4541
(38.64)

4733
(38.30)

64267
(34.00)

64462
(33.4)

68440
(33.1)

2.

Secondary

2146
(17.85)

2089
(17.78)

2189
(17.71)

48811
(25.8)

50578
(25.5)

52002
(25.1)

3.

Tertiary

5054
(42.05)

5122
(43.58)

5437
(43.99)

76067
(40.2)

81793
(41.1)

86599
(41.8)

Total:

12020
(100.00)

11752
(100.00)

12359
(100.00)

189145
(100.00)

198833
(100.00)

207041
(100.00)

 

Note: Figures in the brackets are percentages to total

R: Revised, P: Provisional, Q: Quick

The per capita state income at current prices increased from Rs.5767 in 1992-93 to Rs.6489 in 1993-94 registering an increase of 12.52 percent. At constant (1980-81) prices, the per capita income increased from Rs.1717 in 1992-93 showing an increase of 3.38 per cent.

AGRICULTURE

There has been improvement in the levels of productivity of a number of crops, attributable mainly to improved technology and package of practices. The productivity levels attained during 1993-94 compared to the quinquennial average for the period from 1988-89 to 1992-93 have shown increasing trends in respect of most of the crops.

However, the producitivity levels in respect of crops viz., Jowar, Maize and Tobacco have declined during 1993-94 compared to 1992-93 (Annexe-VII).

 

Area, Production and Yield per Hectare of Principal Crops

 

Crop

Area
('000 hect.)

Production
(Lakh tonnes)

Yield in Kgs/hect.

 

 

 

 

Average
(1988-89 to
1992-93

1993-94

1.

Rice

3547

95.62

2462

2759

2.

Jowar

1053

8.73

672

828

3.

Maize

304

7.76

2129

2554

4.

Chillies(dry)

206

3.24

1513

1569

5.

Castor

260

0.75

252

289

6.

Sugarcane

175

134.74

71@

77@

7.

Groundnut

2352

25.46

899

1082

8.

Cotton (lint)

728

13.49*

250

315

9.

Tobacco

149

1.88

1242

1261

 
@ Tonnes * Lakh bales of 170 Kgs.

The foodgrain production during 1993-94 was of 122.54 lakh tonnes as against 116.58 lakh tonnes achieved during 1992-93, registering an increase of 5.1 per cent. The Kharif production during 1993-94 was 80.34 lakh tonnes as against 80.22 lakh tonnes during 1992-93, the increase being marginal (0.1 per cent). Food grains production during the Rabiseason also increased to 42.20 lakh tonnes in 1993-94 from 36.36 lakh tonnes in 1992-93, the increase being 16.1 percent.

According to quick estimates, Kharif foodgrain production during 1994-95 is expected to be 72.71 lakh tonnes, which is 9.5 percent less than the production during Kharif 1993-94. This decrease is mostly due to the decline in the area sown under foodgrains.

Though there has been a gradual increase in the net area irrigated from 1960-61 onwards, the net area irrigated which was 40.29 lakh hectares during 1992-93 decreased to 38.90 lakh hectares in 1993-94, showing a decrease of 3.4 percent. While there is an increase in the net area irrigated under wells, there wre fluctuations in the net area irrigated under the remainting irrigation sources viz., Cannals, Tanks and others which directly depend on the receipt of rainfall recieved during the respective years. (Annexe VIII).

Seasonal Conditions 1994-95

During the year 1994-95 the South-west monsoon entered into southern parts of Rayalaseema on 3rd June and advanced in the remaining parts of Andhra Pradesh on 9th June. Monsoon became active during the second week of June, 1994 was normal while it was deficient in the crucial month of June, 1994 and scanty in the month of September, 1994. During the South-west monsoon period the State received an average rainfall of 485 mm, as against the normal rainfall of 634 mm, the deficit being 23 percent. Rainfall during this period was normal in 9 districts, deficient in 13 districts and scanty in one district.

The North-East monsoon commenced over the southern parts of Andhra Pradesh on 18th October, 1994 and it was active in the state during the last week of October 1994. During the north-east monsoon period the average rainfall received was 324 mm as against the normal rainfall of 206mm, the excess being 57 per cent. During this period the rainfall was excess in the months of October, 1994 and November, 1994 while it was deficient during the month of December, 1994 while it was deficient during the month of December, 1994. The rainfall during North-East monsoon period was excess in 18 districts, normal in 3 districts and deficient in 2 districts. Owing to the heavy rains received during the period from 28th October, 1994 to 2nd November, 1994 the standing crops were affected in the districts of East Godavari, West Godavari, Krishna, Guntur, Prakasam, Chittoor and Warangal. The good rains received during North East Monsoon period were useful for taking up of Rabi sowings on a large scale. The rainfall also helped in easing the drinking water problem to certain extent. Besides, there was improvement in the water levels of minor irrigation sources and major reservoirs.

The details of rainfall received season-wise and region-wise and the classification of districts according to deviation from normal are given in Annexe IX & X.

AGRICULTURAL FINANCE

Rs.226.05 crores were advanced as long term loan during 1993-94 by Andhra Pradesh Co-operative Central Agricultural Development Bank as against Rs.224.57 crores in 1992-93. The commercial banks released an amount of Rs.1558.78 crores and Rs.448.29 crores towards crop loans and Agricultural term loans during the year 1993-94 as against Rs.1418.98 crores and Rs.384.01 crores respectively in 1992-93. During the first half year of 1994-95 an amount of Rs.1134.15 crores and Rs.226.14 crores was released towards crop loans and Agriculture term loans respectively by Commercial Banks. As on 30.9.1994 the Banks outstanding loans were Rs.2958.07 crores and Rs.1566.52 crores, advanced under crop loans and term loans respectively.

INDUSTRIES

The index of Indsutrial Production for the year 1993-94 showed an increase of 10.6 percent over 1992-93. The Industrial Production during 1993-94 increased under all the three major groups. viz., Mining and Quarrying (9.8 per cent), Manufacturing (10.8 per cent) and Electricity, (10.4 percent). The index of Industrial Production during April to December,'94 decreased by 10.0 per cent compared to the index of Industrial production during the corresponding period of 1993. (Annexe-XI)

POWER

There was considerable increase in the installed generating capacity during the year 1993-94, compared to previous year. The installed generating capacity of 546 MW (including 45 MW from Central sector) added in the year 1993-94, raised the total installed generating capacity to 5626 MW by the end of 1993-94. Thermal capacity accounts for 3030 MW including state's share of 897 MW from the Central Sector and 100 MW of Gas based thermal capacity. Hydel capacity accounts for the balance of 2596 MW.

The power generation during 1993-94 was 19272 MKWH, as against 17872 MKWH in 1992-93. The share of Hydel (9633) and Thermal (9639) generation in the total generation was almost equal during the year 1993-94.

 

POWER GENRATION IN THE STATE

Million KWH

Category

1992-93

1993-94

Hydro

8758
(49.00)

9633
(4998)

Thermal

9114
(51.00)

9639
(50.02)

Total

17872

19272

 
Source: APSEB

The power consumption which was only 0.60 billion KWH in 1960-61 increased to 21.21 billion KWH in 1993-94. The percentage of villages electrified increased from 8.9 in 1960-61 to one hundred percent. An additional number of 1.03 lakh agricultural pumpsets were energised during 1993-94 bringing the total number to 15.01 lakhs by the end of March, 1994. Consumption of power for agricultural purpose constituted 42.5 percent of the total consumption in the state during 1993-94, compared to 41.1 per cent during 1992-93.

The per capita consumption of power in the state was 347 KWH in 1993-94 as against 318 KWH in 1992-93. An additional number of 792 hamlets and 1395 Harijanawadas have been electrified, bringing the total percentage of hamlets and harijanawadas electrified to 60.0 and 92.7 respectively by the end of March, 1994 (Annexe XII).

Public Distribution System

The Public Distribution System has been strengthened further, by opening 585 new fair price shops during the period, November 1993 to December, 1994, bringing the total number of fair price shops to 38,521 out of which 7,218 are located in urban areas and 31,303 are in rural areas. The number of families served on date by Public Distribution System is estimated at 141.29 lakhs, of which 99.03 lakhs are white card holers.

During the year ending with October, 1994, there has been an increase in the distribution of Rice, Edible oil and Kerosene through Publid Distribution System compared to that of the preceding year. However, there is a marginal decline in the distribution of sugar and wheatm products.

Prices

The wholesale price index of Agricultural Commodities, on point to point basis increased by 10.0 percent during October,'93 to Ocotober,'94 as against the increase of 10.9 percent at the all India level. There was an increase of 10.5 percent in the consumer price index for Agriculture Labour during October,'93 to October,'94 in the state as against the increase of 11.6 percent at the all India level. The consumer price index for industrial workers increased by 10.0 percent during this period in the state, while the index of all India, rose by 10.3 percent. The increase in the Consumer Price Index for urban non-manual employees during October,'93 to October,'94 in the state is 10.5 percent as against the increase of 10.1 percent at all India level (Annexe XIII, XIV)

The retail prices of essential commodities on point to point basis during October,'93 to October,'94 revealed a mixed trend. The prices of Rice, Arhardal, Jowar, moved up by 12.6, 18.8 and 5.9 percent, while the price of onions decreased by 0.8 percent. The prices of widely used oils such as Groundnut oil, Gingelly oil and Vanaspathi rose by 2.0, 9.1 and 3.7 percent respectively compared to the corresponding period of the previous year.

The prices of Coffee power, Red chillies(dry), Sugar, Brooke Bond Tea increased by 115.9, 75.7, 13.3 and 2.7 percent respectively. The prices of vegetables such as Potatoes and Tomatoes also moved up by 11.6 and 68.7 percent respectively.

Transport

The state Government have been maintaing roads of 1,37,476 kms. The length of the State Highways in the state is 41,395 kms., of which around 30,000 kms of roads are Black Top Roads. National Highways measuring 2,587 kms are maintained of which 2,554 kms are Black Top Roads. The extent of district roads in the state is 93,494 kms of which 91,173 kms are other than major roads.

Transport plays an important role in the state economy. The demand for public transport facilities has been increasing. The Andhra Pradesh State Road Transport Corporation is the second largest undertaking in the transport sector in the country next to Maharashtra. The Corporation has been operating in 6,670 routes covering around 7.60 lakh route kms. The number of vehicles (APSRTC) on road were 15205 as on November 1993, which was further increased to 15484 by December,'94. The number of passengers carried per day increased from 104.1 lakhs in October, 1993 to 104.44 lakhs in November,'94. The total number of transport vehicles on road as on 31.3.1994 were 2.15 lakhs.

The corporation endeavours to meet the demands of the travelling public by constantly expanding its operation. The task is carried out systematically through opening of new Bus Stations, with modern facilities. The total number of Bus Stations increased from 365 computerised stood at 131 and the number of way side bus shelters constructed were 1279 as at the end of December,'1994.

Next to roads transport by rail plays a predominent role in the state. The state is covered by Train Route of 5,046 route kms. The state is predominently covered by the South Central Railway division with 4,260 route kms. Out of the total train route the length of Broadguage line is around 4,000 kms. There are in all 650 railway stations in Andhra Pradesh.

Visakhapatnam Port Trust has handled a cargo of 185.54 lakh tonnes during 1993-94 as against a quantity of 175.97 lakh tonnes in 1992-93. At kakinada minor port a cargo of 15.60 lakh tonnes and 18.07 lakh tonnes was handled during the years 1992-93 and 1993-94 respectively.

Labour Situation

Mandays lost due to industrial work stoppages during 1993-94 were 24.16 lakhs, as against 25.60 lakhs during the previous year. This decrease in the number of mandays lost is 5.6%

CREDIT

As on 30th June, 1994, there were 4782 banking offices of all Scheduled Commercial Banks in the state. The number of bank branches increased by 2.0 percent over the corresponding period. Even though 56.2 percent of the branches of scheduled Commercial banks were in Rural areas of the state, they account for 17.4 percent of the total deposits and 19.8 percent of the total outstanding credit. The aggregate deposits of scheduled Commercial Banks in the state stood at Rs.17013.07 crores as at the end of June, 1994, showing an increase of 20.0 percent over the corresponding period of the previous year. The gross outstanding credit of these banks in the state stood at Rs.11951.11 crores as at the end of June 1994 showing an increase of 10.6 percent over the corresponding period of previous year. Though metropolitan areas accounted for only 8.7 percent of the bank branches, their credit accounted for as much as 38.4 percent of the total credit.

SOCIAL WELFARE

Welfare of socially backward and economicaly weaker sections of the society has been one of the basic objectives of the state government and every year an outlay of around Rs.130 Crores is earmarked for the economic uplift and to ensure implementation of welfare measures.

Major activities under the programme, besides proverty all eviation are maintainence of Hostels, Residential Schools and providng various types of scholarships and vocational trainings intended towards providing self employment.

Government has revived the Rs.2/- a Kg. a rice scheme and has been supplying rice upto 25 Kgs every month from 1-1-1995 to all the eligible families. This scheme is implemented as a welfare measure as also human resource development. The other welfare measure is enforcement of complete prohibition w.e.f. 17.1.1995.

An outlay of Rs.56.88 crores is proposed for the welfare of Scheduled Castes during 1994-95. Upto the end of January, 95 more than 3.60 lakh families were economically assisted under S.C. Action Plan.

The outlayfor the welfare of the Scheduled Tribes during 1994-95 was Rs.42.15 crores upto the end of January, 1995 more than 1.05 lakh families of Scheduled Tribes were assisted under Tribal Sub-Plan.

For the welfare of Backward classes an outlay of Rs.30.97 crores was provided during 1994-95. Upto to the end of January, 1995 more than 1.70 lakh families of Backward Clases were economically assisted.

 
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