Pareto's 80/20 in Odisha Agriculture: Prioritizing Sub-Sectors for Maximum Impact

Pritipadma Sahu^*, Rajendra Gartia and Suru Munda

School of Statistics, Gangadhar Meher University, Amruta Vihar, Sambalpur, Odisha, India.

Corresponding Author E-mail: pritipadma19@gmail.com

Abstract:

Agriculture is the foundation of Odisha's economy and it continues to be the backbone of the state. The state was recognized for its commendable agricultural production and abundant natural resources. Extensive water reservoirs, forests, substantial rainfall, and a sufficient surplus of labor were pivotal elements that play a significant role in fostering agricultural growth and development. The present research concentrates on the agricultural sector which plays a crucial role in shaping overall Gross Value Added (GVA) of the state and also highlights the study of agricultural sub sectors namely crop, livestock, forestry & logging, fishing & aqua culture. The principle of Pareto’s 80/20 rule is used to identify the 20% Vital few agricultural sub sectors (VFS) which contribute 80% to total GVA. Thus by promoting the GVA of  these VFS sectors the remaining 80% of agricultural sub sectors contributing 20% to the total GVA will automatically be benefited. The objective is to scrutinize, compare, and forecast data pertaining to the contributions of the agricultural sub sectors to Odisha's GVA spanning from 2011-12 to 2021-22. The GVA data were extracted from the Odisha Economic Survey 2021-22. Additionally, various statistical tools and tests, including analysis of variance, F-test, trend analysis, linear regression analysis, were adopted to derive meaningful insights and to formulate various policy measures for the development of the vital few agricultural sub sectors. Despite a 27% contribution to the Gross Value Added (GVA), significant disparities among sub-sectors were identified, necessitating targeted interventions. Recommendations include investing in irrigation infrastructure, promoting crop diversification, providing modern training, supporting small-scale farmers, improving market connections, and embracing sustainable practices. Addressing these disparities could unleash the sector's full potential, fostering sustainable development and empowering farming communities.

Keywords:

Gross Value Added (GVA); Government policy measures; Linear regression analysis; Pareto’s 80/20 rule; Vital few agricultural sub sectors (VFS)

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