Maharashtra's Agricultural Sector Faces Sharp Slowdown Amid Broader Economic Growth
The Maharashtra Economic Survey 2025-26 has unveiled a concerning trend: while the state's overall economy is projected to grow at a robust 7.9% during the fiscal year, the real growth in agriculture and allied activities is expected to plummet to just 3.4%. This marks a severe contraction from the previous year, when agricultural growth was poised at 8.7% in 2024-25, with first revised estimates initially indicating a high of 9.1%.
Comparative Sectoral Performance and Historical Context
In stark contrast to agriculture, the industrial sector is forecast to grow at 5.7%, and the services sector at an impressive 9%. The current agricultural growth rate of 3.4% is alarmingly close to the 3.3% recorded in 2023-24, highlighting a persistent stagnation. This slowdown occurs despite favorable rainfall conditions in 2025, with total precipitation up to October reaching 109.1% of the normal. Out of 355 talukas, 149 received excess rainfall, 181 normal, and only 25 were deficient.
Compensation and Climatic Challenges
The state government disbursed approximately Rs 9,400 crore in compensation to farmers affected by floods, untimely rains, and hailstorms. For crop losses from January to May 2025, Rs 337.42 crore was sanctioned for 4.00 lakh farmers over 1.87 lakh hectares. From June to September 2025, heavy rainfall and floods led to a compensation of Rs 9,022.38 crore for 116.40 lakh farmers across 94.82 lakh hectares. Experts attribute the agricultural decline to severe climatic instability, structural deficiencies in irrigation, and economic pressures on farmers.
Crop Production Trends and Horticulture Insights
During the kharif season of 2025-26, sowing covered 157.27 lakh hectares. Production is expected to increase for cereals (10.6%), sugarcane (22.0%), and cotton (7.0%), but decrease for pulses (28.2%) and oilseeds (47.4%). In the rabi season, sowing spanned 66.98 lakh hectares, with cereals and pulses production rising by 28.3% and 29.7%, respectively, while oilseeds fell by 16.2%. Notably, the area under horticulture crops in 2024-25 is projected at 25.19 lakh hectares, with production expected to reach 339.77 lakh MT.
Irrigation and Landholding Dynamics
Irrigation potential created by major, medium, and minor projects up to June 30, 2024, stood at 57.16 lakh hectares, with utilization at 40.55 lakh hectares in 2024-25. The survey also highlights changing landholding patterns: the proportion of women landholders increased from 12.9% in 1995-96 to 20.6% in 2021-22, while the average operational holding size decreased from 1.58 hectares to 1.18 hectares over the same period.
Organic Farming and Livestock Production
Despite challenges, demand for organic crop products is rising in domestic and international markets. Maharashtra leads India with a 30% share in organic farm production, supported by various state schemes. In livestock, the state ranks third in meat production (11.6% share), fifth in milk production (6.7% share), and seventh in egg production (5.5% share). Per capita availability includes 9.5 kg of meat annually, 358 grams of milk daily, and 65 eggs yearly.
Expert Analysis and Future Outlook
Agricultural experts note that growing consumer preference for fibrous and nutritious foods over carbohydrates and sugar is influencing farming patterns. While crop production has significantly increased over the past six decades, the current slowdown underscores the need for enhanced irrigation infrastructure and climate-resilient practices to sustain growth in Maharashtra's vital agricultural sector.
