2C H A P T E R

Chapter Outline:

Importance of Agriculture Sector

1

Livestock and its importance2

Poultry Farming and its importance3

Fisheries and its importance4

Beekeeping and its importance5

IMPORTANCE OF AGRICULTURE SECTOR:

The specific contributions of agriculture sector to economic development of a country are as under:

Farm Production:Farm Production:1. Food Crops:

a. Wheatb. Ricec. Maized. Barley

2. Cash Crops:a. Cottonb. Sugarcanec. Tobaccod. Oil Seeds and Vegetable Oils

3. Fruitsa. Pomegranatesb. Applesc. Melons etc

Agriculture provides food and fiber:- The key contribution of agriculture is that it provides food (wheat, rice etc) and fiber (cotton, jute etc) to the growing population of the country. If a developing country, whose economy is based on agriculture, fails to meet its food and fiber requirements, then it has an adverse effect on the economy. The direct effect of the shortage of food is that its price immediately goes up in the country. With the rise in prices of food, the nominal wage rates of the labour are forces to go up. As a result in the rise of wages, the investment and the profits of the industries begin to decline. Employment and growth is adversely affected.

oSource of Timber (Wood ):Forestry which is the vital area of agriculture sector is a source of timber. Timber is very important for furniture making business , making sports goods, houses construction as well as shipping industry etc.

oSource of Milk and Honey:Livestock and Bee-keeping is an important area of agriculture sector which provides Milk and Honey to the people. Milk and Honey are very important for the health of the people as well as they are used as a raw material for various industrial production.

oSource of Poultry & Fish meat:Poultry and Fishery are two important areas of agriculture sector. Poultry farming provides Poultry meat and eggs which are the basic need of the people now-a-day beside a big number of people being employed. Similarly fishery also provides nutritious food to the people as well as earn foreign exchange for the country.

oContribution to GNP:-Agriculture sector plays a very dominant role by making a greater contribution to the GDP of the country. As in case of Afghanistan the contribution of agriculture sector to GDP is about 30%. It means that despite structural changes n the economy, the share of agriculture is still at the top amongst all other sectors of the economy.

o Provision of Capital: Another key contribution of agriculture is that it provides capital to the state for meeting the requirement of economic development. The government can secure the flow of capital out of agriculture in a number of ways:

• Tax on agriculture income: Agriculture generates capital by imposing tax on the income of the farmers.

• Purchase of agricultural commodities at relatively low prices: The government sometimes purchases the agricultural commodities at low prices and then sells them at higher prices in the domestic as well as in the foreign market. The difference in prices so secured is used for development purposes.

• Promoting Rural Savings: another mean of securing capital from agriculture sector is to encourage farmers to deposit their saving in banks. The amount thus mobilized is used for development of farm and non-farm sector.

• Source of Foreign Exchange Earnings: The countries like Afghanistan which have a vast agriculture sector can depend upon exportation of agriculture products like rice, cotton, vegetables, sugarcane, fruits and certain seeds etc. accordingly, a sufficient amount of foreign exchange can be earned through the exportation of these agriculture goods. Such foreign exchange can be utilized to import the necessary machinery and plants etc which will be helpful in accelerating the pace of economic development.

• Provide Employment Opportunities:- The countries like Afghanistan which have a limited industrial setup, the agriculture sector serves as a source of big employment in the country. It is the agriculture sector which not only provides employment opportunities but it also gives rise to diversification in such job opportunities. According to an estimates 60% - 70% of population in LDCs live in rural areas which are directly and indirectly attached to agriculture.

Provide Raw Materials to Agro-based Industries:- Agriculture sector provides raw materials to the agro-based industries. For example, agriculture sector provides sugarcane to sugar mills to convert it into sugar.

The development of textile industry and its allied fields is entirely attributed to a fairly large cotton production in the country. Agri-based industries can be established on the basis of the locally produced raw material.

Market for Industrial Products:- The existence of agriculture sector becomes helpful in the extension of market. The expanding and progressing agriculture sector means the more incomes of the farmers. The agricultural development in the country increase the incomes of the farmers which will be spent on the purchase of industrial products like TV, Motorcycle, fans, Tractors, Harvesters, fertilizers etc are made in industries and are sold in the agriculture sector.

Control Inflation: Agriculture sector plays vital role in controlling inflation in the country. By producing more farm production, the prices of the basic commodities of the agriculture will be reduced which will help in curbing inflation in the country.

Strategic Importance:- For a long time, this has been a view that the terms-of-trade have a tendency to move against agriculture sector, i.e. the prices of agriculture commodities go on falling while the prices of industrial goods go on rising. But now-a-days, because of severe increase in population of the world, the demand for agriculture goods including crops, livestock, forestry and fisheries is rapidly increasing and in the coming future, the demand for agriculture goods is not likely to come down. This means that agriculture sector will occupy a strategic importance in the days to come. The food-stuff can be used as a weapon like oil to put a pressure in the world politics. Moreover, the self-sufficiency in food-stuff and its related fields will also be helpful in making an assurance regarding food security.

LIVESTOCK:

• The term livestock is normally defined as animals raised to produce milk, meat, work, and wool.

• It includes beef and dairy cattle, sheep, horses, goats, buffalos, cows and Camels etc.

IMPORTANCE OF LIVESTOCK

Provide a Steady Food Supply:Livestock is a source of steady food supply. It provides mutton, beef, milk etc for the daily consumption for the

human being.

Perform Work Animals are used as motor power for agricultural operations. They are used for ploughing the fields.

Provide Transportation:Animals are used as motor power for transportation purposes. They also transport agricultural products from one place to another.

Provide Raw Materials to Industry:It provides essential raw material such as skins, wool, animal hair, bones for some of the domestic industries like carpets, rugs, leather, footwear etc

Provide Pleasure and Recreation:Livestock is a source of pleasure and Recreation. Horses are used to play Polo, Horse Races etc.

Poultry Farming

Poultry Farming….. continued

• Poultry production has emerged as a good substitute of beef and mutton.

• Chickens, Ducks and Turkey are the most important poultry species

• Today Poultry production is a large commercial industry worldwide.

Turkey

Importance of Poultry Farming

• They provide us meat and eggs• Short period required for growth and

marketing. Other livestock require longer length of time from birth to market (e.g. cattle).

• Can adjust rapidly to changing economic factors – feed, availability, cost, number of birds on

feed.

Chicken and eggs account for a high percentage of farm income.

FisheriesFishery is a sub-sector of agriculture. A fishery may involve the capture of or raising fish through fish farming called aquaculture.

The fisheries sector has great potential to contribute to economic growth:

• Provide nutritious seafood to the people

• Provide Employment Opportunities to million of people

• Reduce Poverty Level in the country.

• Earning foreign exchange through fish export

Fisheries…. continued

It is playing a significant role in the national economy by reducing pressure on demand for mutton, beef and poultry. 1.5 billion people depend upon fish for food, income & livelihood

Fish are the most heavily traded food commodity and fastest growing international “agricultural” commodity. Developing countries provide 77% of global fishing production.

Directly or indirectly, the livelihood of over 500 million people in developing countries depends on fisheries and aquaculture.

Beekeeping

Beekeeping (or apiculture) is the maintenance of honey bees commonly in hives, by humans. A beekeeper (or apiarist) keeps bees in order to collect honey and beeswax, to pollinate crops, or to produce bees for sale to other beekeepers. A location where bees are kept is called an apiary.

• Provides employment to the people.• It provides honey for domestic uses for various diseases and

filing the nutritional needs.• Honey is used in various medicines industries• Countries are earning Foreign Exchange by exporting

Honey.• Bees is a source of crops pollination which leads to more

agricultural production.

World honey production and consumption

Country  Production

(1000 metric tons)  Consumption

(1000 metric tons)  

Ukraine 71.46 52

Russia 52.13 54

Spain 37.00 40

Germany (*2008) 21.23 89

Hungary 19.71 4

Romania 19.20 10

Greece 16.27 16

France 15.45 30

Bulgaria 11.22 2

Serbia 3 to 5 6.3

Denmark (*1996) 2.5 5

World honey production and consumption

Asia

China 299.33 (average 245) 238

Turkey 82.34 (average 70) 66

Iran

India 52.23 45

South Korea 23.82 27

Vietnam 13.59 0

Turkmenistan 10.46 10

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