The Keonjhar District is known as the daughter of the State of Odisha due to its same shape in the map. Agriculture is the main economic activity in the district followed by mining and quarrying activities. The district has got rich mineral reserves with huge deposits of iron ore and manganese. Besides, deposits of chromite, quartz and quartzite, pyrophillite etc. are also reported from different parts of the district. There are 80 mines and 31 large / medium scale industries in the district of which 28 are mineral based. The large/ medium industries together provide employment to 8400 persons. The district is also rich in forest resources with 37.3 percent of the area under forest cover. It has huge Non Timber Forest Produce (NTFP) potential. Thus, collection of minor forest produce, making of sal leaf plates/ cup etc. are the major economic activities of people living in hilly track. Besides, livestock rearing particularly sheep, goat and piggery is another important economic activity for the tribal people.
Paddy is the main Khariff crop grown in the district. The average productivity of the crop is, however, 27.52 quintals per hectare during Khariff 2014-15 pulses, oilseeds and vegetables are the major crops grown during Rabi season. Though the climate of the district is most suitable for cultivation of off-season vegetables, the potential remains largely unexploited. Mango, cashew, guava and citrus are important crops of the district.
Production of various crops and the best optimum use of land is paramount for the farmers to yield best result from their land. In this context, we analyses occupational pattern in the district. Out of total population of 18.01 lakh, about 2.56 lakh are cultivators and 2.26 lakh are agriculture labourers. Nearly 72% of the district’s total labour force of 6.21 lakh, derive their livelihood from agriculture. This indicates that agrarian predominance of the district economy. The district has total geographical area of 8,31,000 Ha. Out of which 297873 Ha. (35.8%) is available for cultivation.
To sustain the production and productivity of the seasonal agriculture activities of the farmers, the banks provide short term credit to farmers, popularly known as crop loan through Kisan Credit Card (KCC). The quantum of loan sanctioned by banks under KCC is determined on the basis of scale of finance which is decided by the District Level Technical Committee (DLTC) for every crop under Khariff and Rabi.
The various State Govt. and Govt. of India programmes for agriculture development in the district are Rice Development, Sugarcane Development, Ragi Development, Jute & Mesta Development, Rashtriya Krushi Vikash Yojana (RKVY), National Programme on Organic Farming, NFSM (Pulse), work plan, Farm mechanization. These programmes are being implemented by Department of Agriculture. Keeping in view the erratic monsoon condition & available resources, thrust is being given on the new method of rice cultivation i.e. System of Rice Intensification (SRI), Line sowing/ Transplanting of High yielding & Hybrid varieities particularly in shallow low land Rice eco system and irrigated rice eco system, to bring more area under remunerative non paddy crops like oil seeds, cotton, maize, vegetables & inter cropping of pulses. Also steps are being taken for introduction of new varieties of HYV/ Hybrid varieties of seed, increase in seed replacement ration, acid soil management, capacity building of the farmers through different schemes being implemented by Agriculture and allied departments.
Further, as per the extent policy of Central and State Govt., farmers will get crop loan upto Rs.3.00 Lakh at 5% and on prompt repayment they will get interest rebate of 3%, thus getting crop loan at 2%. Further, the State Govt. is giving additional interest subvention of 1% up to the loan amount of Rs.50,000 thereby reducing the interest burden to 1% w.e.f. Rabi 2015-16. The crop loan disbursed under KCC is covered compulsorily under Prime Minister Fasal Bima Yojana (PMFBY) in respect of the insurable notified crops.