Our country have much less per acre yields than the global average

Agriculture sector decline in Pakistan

Prime Minister’s Agriculture Package of Rs 341 billion and extension of the some fiscal incentives in the federal budget 2016-17 for the agriculture sector were not the solution.The problems included rising input costs faced by the farmers, indirect taxes on inputs and farm operations, subsidies and support price benefits not reaching the poorest of the poor in the farming sector, lack of innovation in seed varieties, missing technology to modernize the crop harvesting, cultivation, storage and marketing, weak access to agriculture credit and water shortages threatening the irrigated lands.

We must admit that such short-term fiscal packages cannot be an answer to structural problems faced by the agriculturists.The performance of agriculture sector as a whole remained dismal as it witnessed a negative growth of 0.19 percent against 2.53 percent growth.

The survey identified that the growth of crops declined by 6.25 percent, while the other sub component of agriculture sector like Livestock, Forestry and Fishing posted positive growth of 3.63 percent, 8.84 percent and 3.25 percent, respectively. The growth of sub Sector of crops included important crops, other crops and cotton ginning remained negative as it posted a growth of -7.18 percent, -0.31 percent and -21.26 percent which impacted negatively on crops as a result became the reason of negative growth of agriculture sector.

However, other crops contributed 11.36 percent in value addition of agriculture witnessed a decline of 0.31 percent during 2015- 16 against positive growth of 3.09 percent during the same period last year due to decline in the production of pulses, fruits and oilseeds posting negative growth of 12.49 percent, 2.48 percent and 9.56 percent, respectively. With drop in cotton production by around 27.83 percent this year the Cotton ginning having a share of 2.32 percent in value addition of agriculture has suffered badly and posted a negative growth of 21.26 percent compared to 7.24 percent growth during the same period last year.

Moreover, the livestock sector having contribution of 58.55 percent in the agriculture recorded a positive growth of 3.63 percent during 2015-16 compared to 3.99 percent growth during the same period last year. The Fishing sector having contribution of 2.17 percent in agriculture value addition recorded a growth of 3.25 percent compared to 5.75 percent growth of last year. Forestry sector having contribution of 2.06 in the agriculture value addition posted a growth of 8.84 percent this year as compared to the negative growth of 10.43 percent last year.


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