Agricultural sector shows 1.2 percent growth

The agriculture sector of Pakistan has registered 1.2 percent growth during 2010-11 year against the growth target of 3.8 percent, and previous year''s performance of 0.6 percent. According to Economic Survey of Pakistan, growth of agriculture sector, which is 21 percent of Pakistan''s economy, was weaker than targeted mainly due to negative growth of major crops and forestry.
Major crops, accounting for 31.1 percent of agricultural value added, registered a negative growth of 4.0 percent for second year in a row mainly because of decrease in production of rice and cotton by 29.9 and 11.3 percent, respectively. Minor crops accounting for 10.9 percent of overall agriculture value addition, grew by 4.8 percent as against negative growth of the previous two years.
Agriculture credit disbursement of Rs 168.7 billion during July-March 2010-11 was higher by 1.4 percent, as compared to Rs 166.3 billion over the same period last year. Due to structural problems, lack of mechanization and natural calamities during the last few years, three out of the last four years witnessed negative growth in the major crop sector. The unprecedented floods in July 2010 destroyed two major crops, ie rice and cotton. As reported by SUPARCO, an area of 2.364 million hectares under Kharif crops 2010 was damaged.
Sugarcane contribution in value added in agriculture and GDP was 3.6 and 0.8 percent, respectively, which was cultivated on an area of 0.988 million hectares, 4.8 percent higher than last year''s level of 0.943 million hectares. Sugarcane production for the year 2010-11 is estimated at 55.3 million tons as against actual production of 49.3 million tons last year, which is 12.0 percent higher against the production of last year. Main factors contributing for higher output were higher prices and timely availability of inputs which encouraged the farmers.
Cotton accounts for 6.9 percent of value added in agriculture, 1.4 percent of GDP, besides providing raw material to the local textile industry. The crop was cultivated on an area of 2.689 million hectares, 13.4 percent less than last year (3.106 million hectares). The production is estimated at 11.5 million bales, lower by 11.3 percent over the last year''s production of 12.9 million bales and 17.9 percent less than the target of 14 million bales.
Wheat production increased from 23.311 million tons in 2009-10 to 24.214 million tons in 2010-11, showing an increase of 3.9 percent. Rice production decreased from 6.883 million tons in 2009-10 to 4.823 million tons in 2010-11, showing a decrease of 29.9 percent.
The decrease in cultivated area and production is attributed to loss in area under cultivation due to floods, widespread attack of Cotton Leaf Curl Virus (CLCV) and sucking pest/insect in core and non-core area, excessive rain, shortage of water due to canal closure during flood caused fruit shedding in certain areas.
The Livestock sector with 55.1 percent stake in the agriculture sector was also impacted by the massive floods and witnessed slowdown in recorded growth - 3.7 percent in 2010-11 as against 4.3 percent last year. Fishery sector grew by 1.9 percent as against last year''s growth of 1.4 percent. Forestry experienced negative growth of 0.4 percent this year as compared to last year''s positive growth of 2.2 percent.
During the current fiscal year (2010-11), the availability of water as a basic input for Kharif 2010 (for crops such as rice, sugarcane and cotton) was 20 percent less than the normal supplies and 21 percent less than last year''s Kharif season. The water availability during Rabi season (for major crop such as wheat), is, however, estimated at 34.6 MAF, which is 5.0 percent less than the normal availability, and 38 percent more than last year''s Rabi crop.
Gram production increased from 0.562 million tons in 2009-10 to 0.523 million tons in 2010-11, showing a decrease of 6.9 percent. Maize production increased from 3.262 million tons in 2009-10 to 3.341 million tons in 2010-11, showing an increase of 2.4 percent. In minor crops, the production of potato, onion and maash (lentil) increased by 18.6 percent, 11.2 percent and 1.0 percent, respectively. However, the production of mung, chillies decreased by 35.5percent and 8.6 percent respectively.
The production of bajra, tobacco, rapeseed and mustard, maize and barley increased by 18.1 percent, 16 percent, 11.3 percent, 2.4 percent and 2.8 percent, respectively. Gram, the largest Rabi pulses crop in Pakistan, stood at 0.52 million tons against 0.56 million tons of last year, showing a reduction of 6.9 percent during 2010-11 mainly because of unfavourable climate. The production of jawar witnessed a decrease of 9.7 percent in 2010-11. The major oilseed crops include sunflower, canola, rapeseed and mustard and cottonseed. The total availability of edible oil in 2009-10 was 2.9 million tons. Local production of edible oil was 0.662 million tons which accounted for 23 percent of total availability in the country, while the remaining 77 percent availability was provisionally estimated at 696 thousand tons through imports.
The domestic production of fertiliser during the first nine months (July-March 2010-11) increased by 2.7 percent as compared to the same period last year. On the other hand, the import of fertiliser decreased by 50.4 percent, the off-take of fertiliser also decreased by 11.3 percent during the same period last year.