Agricultural and food processing sector is regarded as a promising sector of the Indian economy in view of its large potential for growth and its socio-economic impact on employment and income generation. As the largest and also the most vital sector of the economy, agriculture needs to be developed for accelerating the role of economic growth.Till some years back agriculture in large areas in Andhra Pradesh suffered from low technology and the production of crops was traditional. The agricultural production was dependent upon the amount of labour that the cultivator was able to put in. The farmers lacked knowledge about soil and water conservation and land management practices were inefficient. Low yield resulted due to lack of capital which led to poor investment in infrastructure and poor investment resulted in low return. Yield per hectare is one of the best indicators of agricultural development. Agricultural growth with instability seems to be an important characteristic feature of the agricultural development. Stability is an ideal but growth with instability is more often the reality.