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State Profile

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State Profile- Uttarakhand

 

1. Brief Demographic, Economic and Infrastructure Overview of the State

Demographic Overview

Uttarakhand, located at the foothills of the Himalayas, is characterized by diverse geographical features ranging from snow-capped mountain peaks in the North to tropical forests in the South. It has been divided into two regions- the western region- Garhwal Mandal and the eastern region- Kumaon Mandal. It is divided into 13 districts which consist of 95 blocks. The table below gives key demographic indicators and their comparison with pan-India numbers-

SN

Indicators

Unit

Uttarakhand

India

1

Geographical Area

Lakh Sq. Km

0.53

32.87

2

Population

Crore

1.01

121.02

3

Decadal Growth Rate

Percentage

19.17

17.64

4

Density of Population

Population/Sq. Km.

189

382

5

Urban to Total Population

Percentage

30.49

31.16

6

Sex Ratio

Females/1000 Males

963

940

7

Literacy Rate (LR)

Percentage

79.60

74.04

Economic Overview

At current prices, the Gross State Domestic Product (GSDP) of Uttarakhand was Rs. 9316172 lakh in 2011-12. Between 2004-05 and 2011-12, average annual GSDP growth rate was 18.6 percent. Of this, the contribution of primary sector (comprising agriculture and allied activities) stood at Rs. 1306950 lakh, of secondary sector stood at Rs. 3187796 lakh and that of the tertiary sector stood at Rs. 4821426 lakh. Growth rates of the sectors- primary: 13.50 percent, secondary: 12 percent and tertiary 12.40 percent. The state has been accorded ‘Special Category’ status by Government of India. Key economic indicators are elaborated in the table below:-

Particular

Unit

2010-11

2011-12

2012-13

Gross State Domestic Product (GSDP)

Lakh Rs.

 

 

 

Constant (2004-05) Prices

 

5562599

5856073

6258554

Current Prices

 

8291795

9316172

10754825

Economic Growth Rate as per GSDP

Percent

 

 

 

Constant Prices

 

-

5.28

6.87

Per Capita Income

Rs.

 

79940

90843

Infrastructure Overview

  1. Roads: Total road length in the state was 36,614.2 km in 2010-11.
  2. Railways: Total length of the rail network in the state, as in 2010-11 approx. 350 km. 
  3. Airports: The state has two domestic airports: one at Jolly Grant in the Dehradun district and another at Pant Nagar in the Udham Singh Nagar district.
  4. Power: As of January 2013, the state had a power generation installed capacity of 2,556.56 MW which consisted of 1,422.97 MW under state utilities, 718.54 MW under centre utilities and 415.05 MW under private sector.

2.  Land Use

       Out of a total geographical area of 5.35 million ha in the state, 4.6 million ha (86%) is hilly area and 0.74 million ha (14%) is plain area. Only about 14 percent of the geographical area is cultivable which is mainly attributed to the topography of the state. Because of its location and diverse climate, the State has certain unique advantages for development of horticulture, agro processing industries, organic farming, off season vegetable cultivation and cultivation of medicinal and aromatic plants which can be gainfully exploited. Similarly, service sector, particularly tourism offers a large potential for employment generation in both urban and rural areas. The State is having about 61.1% area under forests. The share of net sown area a only about 14 % as against the national average of 43.37%. The share of culturable wasteland is about 7% which provides a huge potential for fodder trees and other plantation crops including fruits.

             Agriculture is a predominant sector in the state economy which contributes around    23.4% in State Domestic Product (GDP).The average size of land holding in the state is 0.95 ha (Marginal-0.39, Small-1.38, Medium-3.33 and Large-36.00) as against the National Average of 1.57 ha. The share of small and marginal holdings is higher in Uttarakhand State as compared to National Average. The agriculture sector in the state continues to remain heavily depended on rainfall. The net Irrigated area in the State is 3.45 lakh ha. Out of which 85.83% is in plains and 14.17% are is in hills. The irrigation intensity in the State is 159% which varies between 155% in plains to 184% in hilly region.

3. Agro Climatic Zones

The state has different agro-climatic conditions, slopes and height. Details of Physiographic

Zones and farming situations in the state are as under:

S.N

Zone

Farming situation

Soil

Rainfall

(mm/year)

Districts

 Principal farm produces and Livestock

1

Zone A up to 1000 M

Tarai irrigated

 Alluvial

1400

U.S. Nagar, Haridwar

Rice, wheat, sugarcane, lentil, chickpea, rapeseed mustard, mango, Litchi, guava, peach and plums. Livestock: Buffalo and cattle

 

 

Bhabar

Irrigated

Alluvial mixed with boulders and shingles

1400

Nainital, Dehradun and Pauri Garhwal

Rice, wheat, sugarcane, rapeseed mustard, potato, lentil, mango, guava and litchi. Livestock: Buffalo and cattle

 

 

Irrigated lower hills (600-1000M)

Alluvial sandy soil

2000-2400

Champawat, Pauri Garhwal, Dehradun, Nainital, Tehri Garhwal

Rice, Wheat, onion, chilly, peas, potato, radish, cauliflower, pulses, oilseeds, soybean, mango, guava, plums and peaches.

Livestock: Buffalo and cattle

 

 

Rain-fed lower hills (600-1000M)

Residual sandy loam

2000-2400

Champawat, Nainital, Pauri Garhwal, Dehradun, Tehri Garhwal, Bageshwar

finger millet, Maize, rice, wheat, pulses, mango, guava, plums and peaches.

Livestock: Buffalo, cattle and goat

2.

Zone B

1000-1500M

Mid hills south aspect (1000-1500 M)

Sandy loam

1200-1300

Champawat, Nainital, Almora, Dehradun, Tehri Garhwal, Bageshwar

Rice, finger millet, wheat, potato, tomato, peas, cole crops, pulses, peach and plums.

Livestock: Cattle, sheep & goat

3

Zone C

1500-2400M

High hills

(1500-2400 M)

Red to dark

1200-2500

Pithoragarh, Almora, Chamoli, Bageshwar

Amaranth, finger millet, French-beans, Cole crops, potato, peas, peaches, plums, pear, apple and stone fruits.

Livestock: Cattle, sheep and goat

4.

Zone D>

2400 M

Very High hills

Red to dark Black clay

1300

Pithoragarh, Chamoli and  Uttarkashi

Amaranth, buckwheat, peas, Cole crops, apple and potato.

Livestock: Sheep & goat

4.      Production Base/Resource Mapping

Agriculture:

Uttarakhand is traditionally an agrarian state. Close to 78 percent of the population depends on agriculture for livelihood. The total food grain and cereal production in the state in 2011-12 was estimated at approximately 1.75 lakh MT. Sugarcane, wheat and rice are the key agricultural products of the state. Wheat is the main crop and accounts for about 50% of total food grain production in the state. Uttarakhand is deficit in production of food grains and depends on imports from other states. Production of key agricultural is given in the following table.

Produce

Annual Production in 2011-12 (000 Tonnes)

Sugarcane

6596

Wheat

874

Rice

599

Horticulture

The geographical attributes and climatic conditions of the state are ideal for production of temperate and subtropical fruit crops. In hilly areas, fruits like apple, pear, peach, plum, khumani and walnut are produced while mango, litchi, malta, santra, lemon, aonla, guava, and pomegranate are mostly grown in Tarai and valley areas. Major vegetables grown in the state are potato, cauliflower, tomato, onion, brinjal, pea, cabbage and okra. The state has a unique advantage of producing off-season vegetables in hilly areas, which fetches good price in the market. Major spices are ginger, garlic, turmeric and chilly. Details of area, production and productivity of major Horticulture crops in the state are as under (2011-12):

Crops

Area

(lacs ha)

Production

(lacs MT)

Productivity

(MT/ha)

State

Productivity

(MT/ha) National level

Rank in the Country-in terms of productivity

Rank in the Country-in terms of production

Fruit

2.00

8.02

4.00

11.70

30th

18th

Vegetable

(including Potato)

0.89

11.97

12.00

17.30

23th

19th

Spices

0.10

0.75

7.21

1.80

01st

19th

Flowers

0.015

Loose-0.181,

Cut-3567 lacs no

-

-

-

Overall 7th  and 2nd in cut flowers

 

a)      Fruits:

SI.No

Name of fruits

Area (ha)

Production (MT)

1.

Apple

33733

122653

2.

Pear

15081

108120

3.

Peach

9022

49682

4.

Plum

9653

41225

5.

Apricot

9038

32282

6.

Walnut

19644

21812

7.

Citrus

27951

138457

8

Mango

39839

147795

9.

Litchi

9480

19015

10.

Aonla

531

1230

11.

Guava

1813

11285

12.

Other fruits

24942

108568

 b)      Vegetable:

SI.No

Name of vegetables

Area (ha)

Production (MT)

1.

Pea

11646

78050

 

2.

Radish

4663

57967

 

3.

French bean

5442

40054

 

4.

Cabbage

5754

72701

 

5.

Cauliflower

2751

36671

 

6.

Onion

3813

39267

 

7.

Capsicum

2396

13482

 

8

Okra

3339

27907

 

9.

Tomato

8788

102395

 

10.

Brinjal

2326

27046

 

11.

Potato

25034

433821

 

12.

Other Vegetable

12038

128581

 

c)      Spices:

SI.No

Name of Spices

Area (ha)

Production (MT)

1.

Turmeric

944

7575

2.

Chilli

2056

7615

3.

Coriander

834

2763

4.

Garlic

1298

8763

5.

Ginger

4354

44011

d). Flowers:

SI.No

Name of flowers

Area (ha)

Production (MT)

 

1.

Gerbera

70

2016

 

2.

Carnation

28

701

 

3.

Gladiolas

372

897

 

4.

Marigold

554

785

 

5.

Rose

141

136

 

6.

Tuberoses

25

28

 

7.

Others

99

89






 Ranking of Uttarakhand in Horticulture in India

Dairy and Livestock:

       According to the 18th Livestock Census 2007, total livestock in the state was approximately 51 lakh. Poultry population stood at 26 lakh. Production of Meat (goats and sheep) was 6192 MT and Production of Meat (cattle &Buffalo) was 1470 MT. Additionally, milk production was at 12.06 lakh MT, fish production was 3818 MT and production of fish seed stood at approximately 350.00 lakh in 2009-10. Egg production stood at 2614 lakh in 2010-11.

5. Agriculture Marketing Infrastructure in the State

  Uttarakhand Krishi Utpadan Mandi Parisad (UKUMP) is the nodal agency responsible for agricultural marketing in the state. UKUMP has a created state-wide network for marketing of agricultural produce with 25 Principal Market Yards, 31 Sub Market Yards and 27 Weekly Markets. To ensure marketing of horticulture produce, 18 separate marketing yards have been established in the state- 3 wholesale markets have been established under Mini Mission – III of HMNEH at Dehradun, Haldwani and Haridwar, under RKVY, 3 Farmer Consumer Markets have been setup in Dehradun viz Majri Grant in Doiwala Block, Danda Lakhond and Nanurkhera in Raipur Block. Government of Uttarakhand has established a separate Uttarakhand Horticulture Marketing Board to assist farmers of the state in Marketing of horticulture produce.

Status of APMC Act: The state government has amended the APMC Act, in line with Model Act 2003.  The amended Act facilitates setting up of private markets, farmer consumer markets, contract farming, e-trading etc.

Status of Logistics and Warehousing Facilities in the State: FCI has approximately 2 lakh MT of storage capacity in the state (as on February 2013) with utilization level of 82 percent. This includes 0.24 lakh MT of storage capacity hired by the FCI from the state Govt., 0.41 lakh MT from CWC and 0.49 lakh from the SWC.

Cold storages: 15 cold storages have been set up in the state- 1 by the cooperative sector, 2 by the public sector and 12 by the private sector. Besides, one Controlled Atmosphere (CA) storage has been set up by private sector for storage of apples in Nawgaun, district Uttarkashi.

6.  Policy / Administrative Measures in Horticulture Sector:

7.      Status of Food Processing Industry in  Uttarakhand

             o  Total established units: 70

             o  Horticulture based units established under MM-IV of HMNEH: 28

             o  Other food processing units established under ongoing schemes of MoFPI: 42

             o  Total private sector investment made: Rs 594.37 crore

             o  Subsidy sanctioned by the Govt. Rs. 90.55 crore  

8.    Taxation Policy- State Govt.

The State levies VAT on most of the processed food items at the rate of 4 percent. For certain products under the processed foods category, rates are mentioned in table below:

Vat rate in %

Items

0

Fresh fruits and vegetables, fresh fruit juice, fruits shakes, fresh milk, pasteurized milk, butter milk, curd and lassi.

1%

Atta, Maida, Suji, Besan and Pulses.

4%

All processed and preserved vegetables, mushrooms and fruits including fruit jams, jellies, fruits squash, paste, fruit juices, and Pizza bread etc .

9.    Policy Framework Governing the Industrial Sector

9.1 The Special Integrated Industrial Promotion Policy, 2008 for Hilly & Remote Areas of Uttarakhand

State Government has announced the Special Integrated Industrial Promotion Policy 2008 for Hilly & Remote Areas of Uttarakhand to provide incentives for setting up of industries. This Scheme came into force in April 2008 and shall remain in operation till March 2018.

Classification of the Remote Hilly regions 

The following hill areas have been categorized for the entitlement of financial  incentives under the Integrated  Industrial  Package  Scheme declared for the remote hilly regions

Category- A 

The remote hill and border districts of the State including the newly created districts comprising of the hill territories of the district Uttarkashi, Pithoragarh, Chamoli, Champawat and  Rudraprayag.

Category- B 

The territories of district Pauri Garhwal, Tehri, Almora and Bageshwar including  the  Development  Blocks  forming  the hill areas in district Dehradun and Nainital  except the territories comprising the Doiwala, Sahaspur and Raipur Blocks in  district Dehradun and the territories comprising the Haldwani and Ramnagar Blocks in district Nainital.

The salient features of the fiscal incentives and concessions provided under the Scheme are- 

a)      Land development promotional scheme

b)      Special State Capital Production Incentive: Industries making investment in certain areas of the state shall be provided capital incentives depending on the areas- at the rate of 25 percent of the total investment subject to a maximum of Rs. 35 lakh in certain areas and at the rate of 20 percent of the total investment subject to a maximum of Rs. 25 lakh in other areas

c)      Interest subsidy: Industries (in specified geographies) seeking loan through Banks/Financial Institutions shall be given incentives of loans at concessional rates- of simple interest up to @ 6 percent per annum on term loan, with a ceiling of Rs. 5 lakh per unit per annum to units in some areas and @ 5 percent subject to ceiling of Rs 3 lakh per unit per annum in other designated areas.

d)      Concession in VAT: State Govt. will pay up to 75 percent of the total payable amount of VAT on fruit based beverages units located in certain designated areas. And up to 90 percent in other designated areas.

e)      Power Concession to new Industrial Units: All new industrial units (in designated areas) engaged in manufacturing and production of goods including the industrial enterprises engaged in  the activities in service sector shall be entitled for 100 percent rebate or exemption on electric bills for a period of ten years. This is not applicable to hotels, resorts, furnaces etc.  The industries based on fruit preservation, herbal and medicinal plants and domestic produce shall be given due preference and priorities in this scheme.

f)       Grant towards transport subsidy in hilly areas: In order to promote industrial units based on raw material produced in hilly areas, the transport subsidy @ 5 percent of annual turnover (maximum of Rs 5 lakh) will be provided by the State Government to compensate the higher cost of transportation for units in designated areas and 3 percent of annual turnover (maximum of Rs 3 lakh) for units in other designated areas. 

g)      State Government will provide grant-in-aid to set up the industrial unit @ 75 percent of expenditure with a ceiling of Rs. 2.00 lakhs per project towards payment of ISO certification, ISI mark, quality marking, BIS & FPO license, trade mark & copyright registration by the national and internationally approved agencies / institutions.

       In addition to this, State Government is also implementing the National Mission on Food Processing of Ministry of Food Processing Industries (MoFPI) and schemes of the National Horticulture Board. Uttarakhand has been included in the difficult area category by the Ministry of Food Processing Industry (MoFPI) and hence units being set up in Uttarakhand are also eligible for higher incentives under the schemes of MoFPI.

9.2 Mega Industrial and Investment Policy, 2013:

Government of Uttarakhand has promulgated Mega Industrial and Investment Policy 2013. Under this policy inter-alia, following incentives are envisaged:-

The industrial unit set up under this policy would be charged Central VAT @ 1% only.

10. Nodal Agency for Food Processing Sector in the State

For promotion and growth of food processing industries in the state, Department of Horticulture & Food Processing is the nodal agency. For implementation of National Mission on Food Processing in the State a separate Mission Directorate with Mission Director has been created.

11.  Sector Specific State Bodies/Agencies

State Infrastructure and Industrial Development Corporation of Uttarakhand Limited (SIDCUL) plays a key role in industrial development of the state- both in terms of policy formulation and infrastructure development. Industries Association of Uttarakhand (IAU) is an apex body of small and medium scale industries of Uttarakhand and assists in the development of small and medium scale enterprises in the state. For promotion and growth of food processing industries in the state, Department of Horticulture & Food Processing is the nodal agency. For implementation of National Mission on Food Processing in the State, a separate Mission Directorate with Mission Director has been created.

12. Potential Areas for Investment

Based on raw material availability in the state and adjoining areas, the following processable activities hold potential in the state. The list is indicative and may not be treated as exhaustive.  

13. Export of Horticulture produce during 2012-13

14.  Special projects to promote Export

Key Links

http://www.doiuk.org/ (Department of Industries, Uttarakhand)

http://agriculture.uk.gov.in/ (Department of Agriculture, Uttarakhand)

http://ukmandi.co.in/ (Uttarakhand Krishi Utpadan Mandi Parisad)

http://uk.gov.in/contents/view/1/6/ (Directorate of Food Processing)

http://www.sidcul.com/ State Infrastructure and Industrial Development Corporation of Uttarakhand Limited (SIDCUL)

http://des.uk.gov.in/ (Department of Economics and Statistics, Uttarakhand)

http://www.ahduk.org/ (Department of Animal Husbandary, Uttarakhand)

http://www.mpstateagro.nic.in/EZ.HTM (agro industries related information)

http://nhb.gov.in/ and http://agricoop.nic.in/ (for all horti and agri production information)