Agriculture sector plays the key role in the state’s economy. The Census-2001 data reveals that 51% of the total state’s working force are directly depends upon the agricultural sector for their livelihood. However, the contribution of agriculture and allied activities in the Net State Domestic Product (NSDP) has been declining from 37.46% in 1993-94 to 33.62% in 1999-00 and further to 29.97% in 2003-04.On the other hand, net area available for agriculture is almost 26.68% and forest area constitutes more than 60% of its geographical area. Therefore, the proportion of area under agriculture is low as compared similar proportion at all India level of 43.40%. Inspite of less area as well as declining trend in the contribution of NSDP in agricultural sector, the population of the state are heavily depended upon the agriculture (including traditional jhum (shifting) cultivation) as their main source of livelihood.

The major crops of the state includes paddy, pulses, rape and mustard, potato, dry chillies, ginger. The state’s favourable agro-climatic conditions, fertile siols, sub-tropical climate with pockets of temperate zones, large tilla lands and abundance of rainfall really offers immense scope for development of horticulture sector comprising of fruits, vegetables, spices, plantation crops, floriculture, medicinal and aromatic plants etc. The activities of agriculture and allied sector in the state by and large are in the hands of small and marginal cultivators. Soil of the state is very fertile and receives abundant normal rainfall, which is conducive for agriculture and horticultural crops including rubber and tea plantations.

It is true that agriculture is an important potential demand base for industry and services sectors, in addition to being the supply base for food and raw material. Therefore, better performance of the agriculture has a direct and multiplier effect across the economy. The State Government has been approved a Perspective Plan on agriculture for achieving self-sufficiency in food production for 2000-01 to 2009-10.