Economy of Assam

Agriculture

Agriculture is the main occupation of the people and along with the allied occupations it accounts for 63 percent of the states work force. Rice is the staple diet of the people and cultivation of rice is the main occupation of those engaged in agriculture. Different pulses, jute, tea and fruit cultivation are the other agricultural crops.

Sugarcane, potatoes, cotton, oil seeds, coconut and arecanut cultivation is also practiced on a substantial scale apart from the horticulture. But 67 percent of the gross cropped area is taken up by rice cultivation, of this about 67 percent again is taken up for the cultivation of Sali paddy on about 16-17 lakh hectares of land. Both the centre and the state are engaged in giving agriculture a big thrust and a second green revolution is to be brought about in the north east.

Jhum cultivation or shifting cultivation, under which the tribal farmers burn selected areas of forest land and use it for cultivation in a cyclic period, is a problem in Assam. Confined to its two hill districts which are inhabited by tribal people, efforts are being constantly made to wean the people away from this rather expensive form of cultivation.

Among fruit crops, Assam has oranges and other citrus fruit, bananas, guavas, pineapples and mangoes. There are extensive plans to expand the cultivation of these fruit products and market them to bring greater benefits to the farmers. The gross cropped area in the state is about 35 lakh hectares out of which rice cultivation alone accounts for 26 lakhs. Forests are an important part of Assam’s economy.

Timber is a major product of the states extensive forests and bamboo is another product, bringing Assam substantial revenue and adding to its wealth. Assam is rightly known for its excellent tea which is one of the major cash crops . About 15 percent of the world’s total output of tea comes from the tea gardens of Assam, which provide employment to more than a million people. More than half of that in direct form in the tea gardens and factories turning green leaves into dry tea for home and hotel consumption.

Tea cultivation occupies a little less than a tenth of the cultivated area of Assam and 75 percent of the tea gardens are located in the Brahmaputra districts of Darrang, Sibsagar and Lakhimpur. Cachar district accounts for 20 percent of the balance and the remaining 5 percent being accounted by the lower Brahmaputra valley. Guwahati centre in Assam has become the biggest centre of auction of CTC tea in the world.

Industry

Assam is an important producer of silk of different kinds and known for weaving of silk products into saris and fabrics. Production of tusser and other silks and weaving of fabrics is an important occupation for a number of people. Other types of industries are food products, wood and wood products, chemicals and chemical products, non-metallic mineral products.

Tea and oil are of prime importance to Assam’s economy and also plays a significant role in the economy and life of the state. At Digboy on the border with Burma, Assam has the oldest Indian oil venture and one of the oldest in the world.

Mining

In Assam, mining is at present concentrated mainly to four industrial minerals, namely, coal, oil and gas, limestone and sillimanite. The history of coal mining in Assam goes back to the year 1834 when extraction of this mineral on a small scale was being carried out at Cherapunji in upper Assam. Coal was first mined in 1840 near Jaipur by the Assam Tea Co. But the most important phase in the development of the coal mining industry in Assam was the incorporation of the Assam Railway and Trading Co. in 1882 for the exploitation of the upper Assam coal.

The most important coal mines in Assam are situated in the Ledo and Jaipur areas of upper Assam. In the Mikir hills, two small collieries exist -one at Koilajan and other at Seelbhata. The coal mining activity in the Khasi hills is mostly concentrated around the Laitryngew area. In addition to these small collieries, three mines exist in the Khasi hills. Messrs Thanginath colliery and the Mawsynram colliery are important among them. A small coal mine has been developed at Nangwalbibra in the west Darranggiri Coalfield in the Garo hills under the auspices of the ASMDC, a state government under taking.

Petroleum mining is an outstanding feature of Assami’s industrial landscape. Its exploration and development in the state are carried out by the oil and natural gas commission, Oil India Limited and Assam oil company. The discovery of the first oilfield, the Digboy field, goes back to the year 1889. The outstanding work of the BOC in upper Assam has culminated in the discovery of the Nakarkatiya (1953)and Moran (1950) fields which are now developed by the OIL company. Limestone mining in Assam is confined to surface quarrying.