Agriculture in Odisha: A Sector Growing, but Still Carrying Old Vulnerabilities

Ipsa Tripathy

Bhubaneswar: Agriculture in Odisha is much more than a contributor to the state economy. It remains closely tied to rural livelihoods, food security and the social fabric of the state. Nearly half of Odisha’s workforce is engaged in agriculture and allied activities, while the sector contributed 19.6 percent of the state’s Gross State Value Added in 2025–26. The sector is also estimated to have grown by 5.3 percent in 2025–26, indicating that agriculture is not standing still. Yet behind these numbers lies a more complicated story. Odisha has made substantial progress in irrigation, foodgrain production, mechanisation and diversification, but farmers continue to face fragmented holdings, climate shocks, market uncertainties and low levels of value addition.

The strongest feature of Odisha agriculture is its diversity. Paddy remains the dominant crop, particularly during the Kharif season, but the state also produces pulses, oilseeds, maize, vegetables, fruits, spices and other crops. Fisheries, livestock and forestry add further dimensions to the rural economy. This diversity gives Odisha considerable agricultural potential because its different agro climatic regions allow different crops and farming systems to develop. Horticulture is one area with especially strong potential. The state has suitable conditions for mango, cashew, banana, pineapple, papaya, turmeric, ginger, chilli, vegetables and several other crops.

There has also been measurable progress in production. Odisha recorded a record foodgrain production of 150 lakh metric tonnes in 2024–25, while rice production reached 118.6 lakh metric tonnes. Maize production rose to 11.7 lakh metric tonnes, supported partly by the Mukhyamantri Maka Mission. Coarse cereals have also recorded strong growth. These figures show that Odisha is gradually moving beyond its traditional dependence on rice, although paddy continues to dominate the agricultural landscape.

One of the most important improvements has been irrigation. For decades, agriculture in Odisha has been heavily influenced by the monsoon. The state has therefore invested significantly in irrigation infrastructure. Irrigation potential increased from 62.6 lakh hectares in 2019–20 to 74.2 lakh hectares by 2025–26, covering nearly 80 percent of the Gross Cropped Area. This expansion has the potential to reduce dependence on rainfall, allow farmers to cultivate during the Rabi season and make crop diversification more practical.

However, irrigation potential does not automatically mean that every farmer has reliable access to water. The distribution and actual utilisation of irrigation remain important questions. Some areas continue to depend heavily on rainfall, while others face problems associated with water availability, infrastructure and access to irrigation facilities. The challenge is therefore not simply to create more irrigation infrastructure, but to ensure that the available water reaches farms efficiently and sustainably.

Climate remains one of the biggest threats to Odisha agriculture. The state has to deal with droughts, floods, cyclones, heatwaves, erratic rainfall and unseasonal rain. The government’s recent climate risk assessment identifies different districts as particularly vulnerable to different hazards. Western districts face significant drought and heat risks, while several coastal districts are more exposed to flooding and cyclones. For farmers, climate change does not remain an abstract environmental issue. A delayed monsoon can affect sowing, excessive rainfall can destroy standing crops, and a cyclone can damage crops, livestock, agricultural infrastructure and stored produce within hours.

The heavy dependence on paddy presents another challenge. Rice is important for food security and has an established procurement system, but excessive concentration around one crop can limit income opportunities and increase vulnerability. Odisha is now promoting crop diversification, including pulses, oilseeds, maize, millets, vegetables and horticultural crops. The state has also introduced programmes for rice fallows, integrated farming and diversification in areas covered by irrigation projects. Such changes could improve farm incomes, but farmers will shift away from familiar crops only when alternative crops offer reliable markets, adequate prices, technical support and manageable production risks.

Another major strength is the growing recognition that farming cannot depend on crops alone. Livestock, fisheries, horticulture, agroforestry and integrated farming can provide additional sources of income. The 2025–26 Economic Survey, however, shows that crops still account for 61.5 percent of Odisha’s agriculture and allied sector GVA, while livestock contributes 13.7 percent and fishing and aquaculture 11.3 percent. Increasing the contribution of these allied activities could make rural incomes more diversified and resilient.

Yet the economics of farming remain difficult. Production is only one part of agriculture. A farmer can obtain a good harvest and still struggle if the selling price is poor, transportation is expensive or storage facilities are inadequate. Perishable crops are particularly vulnerable because farmers often cannot wait for better prices. The expansion of cold storage, processing facilities, farmer producer organisations and local value chains therefore matters as much as increasing crop yields. Odisha has introduced initiatives related to agricultural infrastructure, cold storage, farmer producer organisations and agricultural enterprises, but the real measure of success will be how effectively these facilities reach farmers.

The state also faces the long term problem of declining and fragmented agricultural landholdings. Smaller farms make mechanisation, irrigation investment and commercial cultivation more difficult. Odisha itself identifies declining landholdings and recurring natural calamities as major challenges to the sustainability and profitability of farming. Integrated farming systems offer one possible response because farmers can combine crops with livestock, fisheries and other activities instead of depending on a single harvest.

There is also an environmental question that cannot be ignored. Increasing agricultural productivity must not come at the cost of soil degradation, excessive chemical use, groundwater stress or biodiversity loss. Odisha is increasingly promoting climate smart agriculture, soil health management, organic farming, agroforestry, crop diversification and more efficient water use. These approaches are important because the future of agriculture depends not only on how much is produced today, but also on whether the soil, water and ecological systems remain capable of supporting farming tomorrow.

Odisha agriculture, therefore, cannot simply be described as successful or struggling. It is a sector in transition. Production is rising, irrigation is expanding and diversification is beginning to take shape. At the same time, climate risks, fragmented landholdings, market instability and inadequate value addition continue to limit what farmers ultimately earn.

The next phase of agricultural development in Odisha should therefore move beyond the question of how much farmers produce. The more important question is how much farmers earn, how secure that income is, and whether farming can remain viable under a changing climate. A stronger agricultural future for Odisha will require better water management, diversified crops, reliable markets, storage and processing infrastructure, climate resilient farming practices and greater participation of farmers in value chains. The fields of Odisha have the capacity to produce much more than food. The real challenge is to ensure that they also produce stable livelihoods, resilient rural economies and a sustainable future for the people who depend on them.

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