Shrinking Crop Labour Absorption in Andhra Pradesh

Abstract

This paper examines the trends, patterns, and factors of labour absorption in the crop sector of undivided Andhra Pradesh, where most people still depend on agriculture for employment. During the past three decades, the sector has undergone a remarkable change, and crop employment/labour absorption has been significantly affected. Labour absorption per hectare has declined in all major crops, despite a significant rise in yield levels among major crops and a small rise in the irrigated area of a few crops. Crop employment has fallen, primarily because labour intensity in major crops has declined, notwithstanding the small rise in gross cropped area and change in the cropping pattern towards labour-intensive crops. Labour absorption in the crop sector is positively influenced by annual rainfall and the area ratio of labour-intensive crops. This kind of shrinking labour absorption in the crop sector causes under-employment and inability of the present form of the crop sector to provide additional employment in the state’s agriculture. This situation calls for crop diversification towards labour-intensive crops and speedy development of the non-crop sector within agriculture—such as post-production processing, storage, value addition, and marketing—to absorb labour from the agricultural sector in the state.