Arunachal Pradesh’s economy is largely agrarian, based on the terraced farming of rice and the cultivation of crops such as maize, millet, wheat, pulses, sugarcane, ginger, oilseeds, cereals, potato, and pineapple. About 80% of the population living in rural areas and 62.2% of the total working population are dependent on agriculture for their livelihood.

The state gets as much as 500 centimeters of rainfall and this accounts for a large number of rivers and lakes in the region apart from extensive forests which have induced the people to adopt the 'Jhum' form of cultivation in which a select area of the forests is burnt and used for cultivation. In the following years, the farmers shift to another forest plot which leads to the cultivation being called shifting cultivation. About 53% of the total cultivated area is under Jhum and the rest under permanent cultivation.

Arunachal Pradesh is a hilly state with deep valleys and high mountain peaks traversed by a number of rivers and rivulets, has varying agro-climatic zones which can broadly be classified as:

• Tropical Zone

With high rainfall and humidity, warm temperature ranges from 22-36 degree C in summer and 10-25 degree C in winter. The elevation ranges 80-900m MSL (mean sea level)

• Sub-tropical zone

With moderate rain-fall and humidity, cool temperature ranges from 15-30 degrees C in summer and 14-21 degrees C in winter. The elevation range: 900-1,800 m MSL. This zone experiences less rainfall, partially dry zones in the inner Himalayas

• Temperate Zone

With less rainfall, cool temperature is ranging from 0-22 degrees Celsius. The elevation ranges from 1,800 m to 2,500 m MSL

• Alpine Zone

Essentially cool temperature ranging from 0-20 degree Celsius with snow-fall and elevation above 2,500 m MSL

A major strength of Arunachal Pradesh’s food processing industry lies in the following:

• Seed Spices- Ginger, Turmeric, Garlic, Large Cardamom, Tejpata (Cinnamomum Tamala)
• Fruits- Kiwi, Apple, Pineapple, Oranges, Pears, Banana and, Jackfruits
• Coarse cereals- Pearl Millet, Rice, Wheat, Maize
• Oilseeds- Groundnut, Rapeseed, and Mustard
• Commercial crop- Sugarcane

Food Grains: Key production highlights9 (2015-16)

Total production of 409 lakh* MT of food grains

• Rice – 285 lakh* MT
• Wheat – 75 lakh* MT
• Millet – 14.50 lakh* MT

Horticulture products: Key production highlights (2015-16)

Total production of 236.2 thousand MT of horticulture products

• Fruits – 146 thousand MT
• Vegetables – 20.6 thousand MT
• Spices –68.7 thousand MT

Key production highlights (2015-16)

• Ranked one in production of Kiwi (6.05 Thousand MT)
• Top producer of Kiwi and the second-largest producer of large cardamom in India

The key production statistics for the state (the year 2015-16) are presented below:

Production Cluster of the State:-

Arunachal Pradesh has the following marketing facilities in the state:

• Food Processing Units: A few food processing units are present in the state, the units are mainly focused on Kiwi and apple processing products.

One cold storage (capacity 5000 MT) in the state established under the National Health Mission.

Agriculture Marketing is governed by the Agricultural Produce Marketing Committee (APMC) Acts, which are administered by respective State Governments. In order to keep pace with the changing production pattern and growing marketable surplus, the Government advocates the development of an adequate number of markets equipped with modern infrastructure, with increased private sector participation and the development of other marketing channels like direct marketing and contract farming, etc.

The reforms taken up by the Government that is applicable to Arunachal Pradesh are given below:

Famous Ethnic Food of Arunachal Pradesh

• Pikke Pila is a type of a pickle that is made by using bamboo shoots and pork fat with a little addition of King Chilly. There are many variations of PikkePila using ingredients such as local vinegar, local fermented pork meat& vegetables.
• Luktir is a combination of cooked dry meat and chili flakes from the Kingchilly. The dish is served with rice.
• Momo is a dumpling stuffed with various vegetables like cabbage, potato, carrot, etc in case of Veg- Momo and Chicken, mutton, beef, etc

Some of the major processing clusters in the state include:

• Agriculture is the mainstay of the economy of Arunachal Pradesh. It is mainly dependent on 'jhum' cultivation. The state’s agriculture and allied sectors have growth rates that are three times the national average. The state is the largest producer of kiwis in India and the second-largest producer of large cardamom
• Major agro and forest-based industries in the state are related to tea, fruit, non-timber, and plywood industries. Around two-thirds of the state’s population is dependent on climate-sensitive natural resources such as agriculture, forest, biodiversity, and water availability. Non-timber-based industries include bamboo, cane, rubber, and medicinal plants
• Tourism has grown rapidly in recent years with eco and adventure tourism, cultural tourism, and religious tourism being the major areas of interest. Major sports of interest to travelers include angling, boating, rafting, trekking, and hiking
• Textile is a grass-roots industry in Arunachal Pradesh and provides employment, mainly to women. Most of the units are home-based and have a small scale of operations
• The state boasts of an enriching array of unique and appealing handloom designs from each of its tribes. The products include skirts (gale), shirts (galuk), cotton shawls, side bags, and curtain cloth
• Arunachal Pradesh has considerable mineral reserves & preliminary studies have highlighted economic mineral deposits in considerable quantity