Overview of Agriculture Industry

OVERVIEW OF
AGRICULTURE INDUSTRY
SUBJECT: ANALYSIS OF PAKISTAN INDUSTRY
SUBMITTED BY:
MEHAK BHATRA
LAL KRISHAN
FARRUKH ANSAR
MUJAHID HUSSAIN BHATTI
INTRODUCTION
Agriculture industry is considered to be one of an important sector which contributes a lot to
Pakistan’s economy. Population of the country is directly supported by this sector and this
sector plays an essential role in countries population daily life as well as on economic level. It
held accountable for 26% of GDP gross domestic product). The crops which are included in
agriculture sector are rice, cotton, wheat, sugarcane, vegetables and fruits. Agricultural
production in Pakistan is supported by world’s largest irrigation system, the two main seasons
in which production of crops in Pakistan is on high level is May as cotton, rice and sugarcane
starts to grow in the month of May and are harvested in the month of November on the other
hand wheat crop is produced and harvested from November to April. There is an urgent need
to use resources such as land water more effectively to produce more crops. The large
landowners are highly responsible for the change because they owns 40% of arable land and
also controls irrigation system by making difficulties to pass wide range of reforms.
[ CITATION htt1 \l 1033 ]
Rice:
Pakistan also plays a major role worldwide as an exporter of rice as it annually exports around 2
million tons rice which is almost 10% of the world’s trade. Pakistan contributes 25% share in
export of basmati rice which is the second highest source of income for Pakistan and
contributes on very huge level in Pakistan’s economy, rice fulfills 60% of the population of
Pakistan food needs also it is a source of food worldwide for animals during winter season
“Drake et al., 2002, Nguyen et al., 2008”. The usage of rice was increased from 2158.8% from
1952 toll 2004.
Wheat:
Pakistan on the total imports around 2 billion dollar agricultural crops which includes wheat, oil,
pulses and other food additives. When it comes to production of wheat Punjab is the province
which is mostly irrigated and focused on production of wheat on high level. With the passing
time and revolution around Pakistan public also invested in irrigation canals and market
development because of which agriculture sector gained sustainable production of wheat
which was the primary focus of Pakistan’s population, but still production of wheat needed
improvement in different varieties.
Cotton:
Cotton is known as cash crop of Pakistan as Pakistan is the world’s largest producer of cotton,
Pakistan also ranked as 4th largest producer of cotton after contributing its share of 9.81%
globally. Also Pakistan’s yarn contributed 26.1% and 14.3% globally. Currently agricultural
committee is focused on increasing cotton production by 40 to 60%, but water irrigation
problem is one of the major reason which is effecting the production of cotton on huge level.
Maize:
Maize is also known as second cash crop of Pakistan which is serving as fees also it’s a high
yielding cereal crop in the global market, maize is considered to be the fourth major crop of
Pakistan after wheat rice and cotton. The two main seasons in which maize is sown and
harvested are spring and autumn. It is highly dependent on water the non-availability of water
can highly effect the production on the maturity level.
Sugarcane:
Sugarcane is considered to be the high valuable cash crop and is related with the production of
sugar in Pakistan. It adds additional value in the agriculture sector by contributing its share of
3.4%. Slow growth rate of sugarcane gives space and resources for other crops production such
as pea’s onions etc. which could decrease the production of sugarcane and the economic
income will also decrease.
IMPORTANCE OF AGRICULTURE SECTOR IN PAKISTAN
Employment:
As Pakistan is one of the developing country and unemployment ratio is very high in the
country and improvement in the employment ratio is very much important in this regard
agriculture sector has importance because it provides employment opportunities directly or
indirectly as employment also effects the GSP of the country’s economy also effects the per
capita income by increasing per capita income the living standard of people will also increase
which will result in more education facilities all these will leads towards economic development
this is why agriculture sector contributes on a huge level for the economic development of the
country by providing employment opportunities to people.
Food needs:
As we all can see population rate is continuously increasing in Pakistan and according to UNDP
report population in Pakistan is increased by 2% yearly with this continuous growth and
increasing population food needs are also increasing day by day in this regard agriculture is the
main sector which is meeting the increasing requirement of food by people. Agriculture sector
also helps in reducing imports by meeting the food needs which helps in the development of
economy as well.
Contribution in export:
As Pakistan is the major exporter of cash crops such as wheat rice cotton around 9.8 billion
bales of cottons are produced in Pakistan per year and 4.3 Million ton rice per year these crops
are exported to various foreign countries and helps in improving economy as well.
Infrastructural Development:
The foreign exchange of agricultural crops is further utilized to improve the infrastructure or
other sector such as education, health etc. Development of infrastructure plays huge role in the
development of economy it works as a fuel in the engine of economic development, well-
structured and organized infrastructure is a key because it helps in quick transportation of
agricultural products as well as it plays important role in distributing these crops.
This sector has huge importance in the economy of Pakistan because it helps in increasing the
GDP level and contributes around 25% of the total GDP which is larger as compare to other
sectors. Agriculture sector also played huge role in decreasing rural poverty, agriculture also
played huge role in the development of banking sector.
[ CITATION htt \l 1033 ]
Contribution of agriculture in economy of Pakistan:

Pakistan's agriculture sector plays a central role in the economy as it contributes 18.9 percent
to GDP and absorbs 42.3 percent of labor force. ... According to the 6th Population and Housing
Census of Pakistan 2017, the country's population is growing at the rate of 2.4 percent per
annum. During 2017-18, agriculture sector recorded a remarkable growth of 3.81 percent and
surpassed its targeted growth of 3.5 percent and last year’s growth of 2.07 percent. This
stemmed from higher yields, attractive output prices and supportive government policies,
better availability of certified seeds, pesticides, agriculture credit and intensive fertilizers
offtake.
 Rice played a key role in the agro-based and occupied a prominent position in

agricultural economy of the country. Pakistan is the 11th largest producer and 4th
largest exporter of rice. Rice accounted for 3.2% of the value added in agriculture and
0.7% of GDP in Pakistan. Basmati rice was famous in the country due to its excellent
cooking quality and good marketing value at national and international levels.
Contribution of agriculture in food system:

Agriculture can contribute to nutritional outcomes through the cultivation of underutilized
crops, though bio fortified foods, through the employment of micronutrient enriched fertilizers
and by other improved agronomic practices such as crop rotation and conservation tillage.
A FAO report emphasized that agriculture is a key to food security in many parts of the world.
The report indicates further that agriculture contributes to poverty alleviation by
reducing food prices, creating employment, improving farm income and increasing wages.
Rice ranks as second amongst the staple food grain crop in Pakistan and it has been a major
source of foreign exchange earnings in recent years. Nine out of every ten people in the world
who eat rice are Asian.
Contribution of agriculture in employment:

Agriculture industry currently employs 35.8% of the country’s labor force which has declined
from 45% in 2016 but still represents the highest number of employed individuals from any
other sector.
 Rice industry employs a big chunk of the population. From the process of production to
reaching its end consumer, farmers, producers, millers and other forms of labor are
involved.
Contribution of agriculture in Export:

Agriculture industry plays the most prominent role in the export revenue of the country.
Currently Pakistan’s major export coming from this industry is of cotton, rice, livestock, sugar
and wheat.
 Pakistan’s Rice export has shown significant growth. Currently the Basmati Rice
produced in Pakistan is exported majorly to UK, UAE, OMAN, and BELGIUM and SAUDIA
ARAB. Other countries also import rice from Pakistan indicating strong industrial
strength in this sector.
IMPACTS OF COVID-19 ON RICE GROWING INDUSTRY:

It cannot be denied that Agriculture sector is the backbone of the Pakistan economy as it not
only contributes around 19.3 percent to annual GDP but it also absorbs around 40% of labor
force directly and indirectly. In addition to it this sector is the also the largest raw material
provider to many industries. However, if we talk about this sector performance of Pakistan
economy in the year 2020, we can say it had been tough and challenging, but still managed to
show the growth of overall 2.67% (due to the significant increase of Kharif crops) against the
target of 3.5%, but higher than last year's growth of 0.58%, even during the COVID 19 Pandemic,
which had crippled the other sectors of economy badly.
According to a survey conducted by Asian Development Bank on “Covid-19 impacts on firm
households in Punjab”, due to this current pandemic, the earnings of the farmers and their
households suffered. They lost earning because of the some reasons. The first reason is that
because of Corona Virus, at least one family members of they had returned from urban and the
city areas. This resulted in the decrease of the income of the family and it also played part in
increasing the expenses of the households. It is also found out that the wages of the employees
also suffered along with the loss in the non-farming earnings. It is also revealed that the prices
for the seeds, fertilizers and pesticides also increased. Apart from these, the positive thing was
that there was a lot of labor available for the farming and there were also many machines
available for preparing the land for farming and also for sowing the crops.
If we talk about which provinces contributed to the growth in Kharif crops (especially rice),
Punjab Tops the list, followed by KP, then Balochistan and then Sindh. The decrease in the rice
production in Sindh can be attributed to the invasion of the locust infestations would cause up
to PRs688.5 billion ($4.1 billion) in damage of Kharif crops and PRs705.8 billion ($4.2 billion) of
Rabi crops, and the government infrastructure for locust control is so outdated to counter the l
ocust attack .
This increase in growth can be contributed to many reasons. Firstly, the Country witnessed a he
avy monsoon rain in the last year, which had significantly increased the production of all major
Kharif crops (rice, sugarcane, pulses and oil seeds). Secondly, the demand of the production of r
ice also increased domestically, during the lockdown. And, thirdly, the increase in the growth c
an also be contributed to the used of good pesticides and fertilizers, which had yielded the crop
s growth effectively.
[ CITATION rib \l 1033 ]

Overview of Agriculture Industry

Uploaded by

Copyright:

Available Formats

Overview of Agriculture Industry

Uploaded by

Document Information

Original Description:

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Overview of Agriculture Industry

Uploaded by

Copyright:

Available Formats

OVERVIEW OF

IMPORTANCE OF AGRICULTURE SECTOR IN PAKISTAN

Contribution of agriculture in economy of Pakistan:

 Rice played a key role in the agro-based and occupied a prominent position in

Contribution of agriculture in food system:

Contribution of agriculture in employment:

Contribution of agriculture in Export:

[ CITATION htt5 \l 1033 ]

IMPACTS OF COVID-19 ON RICE GROWING INDUSTRY:

[ CITATION rib \l 1033 ]

[ CITATION htt2 \l 1033 ]

[ CITATION htt3 \l 1033 ]

You might also like