Chapter 2 AgricultureThe agriculture sector continues to be an essential   1.6 billion to address the food security object...
Pakistan Economic Survey 2011-12by 27.7 percent, 18.6 percent and 4.9 percent,         respectively.Table 2.1: Agriculture...
Agricu                                                                                                                    ...
Pakistan E         Economic Sur                    rvey 2011-12                               2World Co       otton Outloo...
Agricu                                                                                                        ultureTable ...
Pakistan E         Economic Sur                    rvey 2011-12                               2increase its productio and ...
Agricultureb) Minor Crops                                             It is estimated that 10 percent of the totali) Oilse...
Pakistan Economic Survey 2011-12II. Farm Inputs                                         natural gas (the raw material for ...
AgricultureDuring July-March, 2011-12 about 361.0 thousand                acres, were      inspected    for   certificatio...
Pakistan Economic Survey 2011-12irrigation process because of improper lining of      and winter season is presented in Ta...
AgricultureIt is expected about Rs. 30.00 billion would be               following major water sector                proje...
Pakistan Economic Survey 2011-12iv) Agricultural Credit:                                   The increasing demand for credi...
AgricultureBox-1Credit Disbursement to Farm and Non-Farm SectorThe sector-wise classification reveals that the share of th...
Pakistan Economic Survey 2011-12Table 2.18: Livestock Population                                                          ...
AgricultureTable:2.20 Estimated Livestock Products ProductionSpecies                              Units                   ...
02 agriculture
02 agriculture
02 agriculture
02 agriculture
02 agriculture
02 agriculture
02 agriculture
02 agriculture
02 agriculture
02 agriculture
02 agriculture
02 agriculture
02 agriculture
02 agriculture
02 agriculture
02 agriculture
02 agriculture
02 agriculture
02 agriculture
02 agriculture
02 agriculture
02 agriculture
Upcoming SlideShare
Loading in …5
×

02 agriculture

454 views

Published on

0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
454
On SlideShare
0
From Embeds
0
Number of Embeds
1
Actions
Shares
0
Downloads
12
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

02 agriculture

  1. 1. Chapter 2 AgricultureThe agriculture sector continues to be an essential 1.6 billion to address the food security objective.component of Pakistan’s economy. It currently Under this Programme the Ministry shall donate upcontributes 21 percent to GDP. Agriculture to 500,000 metric tons of wheat per year and thegenerates productive employment opportunities for World Food Programme intends to negotiate with45 percent of the country’s labour force and 60 local producers to exchange part of the donatedpercent of the rural population depends upon this wheat for High Energy Biscuits (HEB) and similarsector for its livelihood. It has a vital role in products manufactured in Pakistan factories forensuring food security, generating overall distributions through WFP operations to primaryeconomic growth, reducing poverty and the school children, siblings of malnourished childrentransforming towards industrialization. The present and the vulnerable populations especially childrengovernment is determined to improve the quality at risk of malnutrition. The fund will also beof life of the people and to banish hunger and converted to fortified wheat flour for distributionsmalnutrition from the country by making aimed at combating food insecurity in Pakistan.agriculture an efficient, productive and profitable The WFP will also cooperate in the capacitysector of the economy. building of the Ministry’s officials in areas addressing food security and monitoring progress.In order to improve governance in the public sectorthe government took bold steps and brought in the Flooding in 2011, affected crops like rice, cotton18th Amendment to the Constitution of 1973. and sugarcane, although in the current year, 2011-Accordingly, Ministries performing tasks which 12, they performed well and provided support andwere provincial subjects were devolved from the continued to support food security objectives thisFederal level, including the Ministry of Food and year. The agriculture sector recorded a growth ofAgriculture. However, realizing the food security 3.1 percent in 2011-12. The profitability ofconcerns across the country the government took agriculture sector during 2011-12, remained hightimely steps to establish the Ministry of National because the farmers received good prices for rice,Food Security and Research to tackle the Food cotton and sugarcane, which allowed for greaterSecurity issues. financial resources passed on to the rural economy.The newly created Ministry, under the aegis of Recent performancethe present government, has planned to take During 2011-12, the overall performance oftwo major steps in order to solve the food agriculture sector exhibited a growth of 3.1 percentsecurity issues on a permanent basis. The first mainly due to positive growth in agriculture relatedstep is the establishment of the National Food subsectors, except minor crops. Major cropsSecurity Council representing Federal, accounted for 31.9 percent of agricultural valueProvincial and local level Governments. added and experienced a growth of 3.2 percent inSecondly, through a Letter of Intent the Ministry, fiscal year 2011-12 with negative growth of 0.2in collaboration with World Food Programme, is percent in 2011. The significant growth in majorlaunching the Zero Hunger Programme worth US $ crops is contributed by rice, cotton and sugarcane 17
  2. 2. Pakistan Economic Survey 2011-12by 27.7 percent, 18.6 percent and 4.9 percent, respectively.Table 2.1: Agriculture growth percentages from 2005-2012Year Agriculture Major Crops Minor Crops Livestock Fishery Forestry2005-06 6.3 -3.9 0.4 15.8 20.8 -1.12006-07 4.1 7.7 -1.0 2.8 15.4 -5.12007-08 1.0 -6.4 10.9 4.2 9.2 -13.02008-09 4.0 7.8 -1.2 3.1 2.3 -3.02009-10 0.6 -2.3 -7.7 4.3 1.5 2.22010-11 2.4 -0.2 2.7 4.0 1.9 -0.42011-12(P) 3.1 3.2 -1.3 4.0 1.8 1.0Source: Pakistan Bureau of StatisticsP:Provisional sowing season, begins October-December and isMinor crops contributed 10.1 percent value harvested in April-May. Wheat, gram, lentiladdition in agriculture and exhibited a negative (masoor), tobacco, rapeseed, barley and mustardgrowth of 1.3 percent in 2011-12 against 2.7 are "Rabi" crops. These crops make Pakistan anpercent growth of 2011. The Livestock sector, agricultural country and its performance iswhich has a 55.1 percent share in the agriculture, dependent upon timely availability of irrigationgrew by 4.0 percent in 2011-12. The Fishery sector water. During 2011-12, the availability of water asgrew by 1.8 percent as against last year’s growth of a basic input for Kharif 2011 (for the crops such as1.9 percent. Forestry sector posted a positive rice, sugarcane and cotton) has been 10 percentgrowth of 1.0 percent this year as compared to less than the normal supplies but 13 percent highernegative growth of 0.4 percent last year. than last year’s Kharif 2010 season. The waterPakistan has two crop seasons, "Kharif" being the availability during Rabi season (for major cropfirst sowing season from April-June and it is such as wheat), is estimated at 29.4 MAF, which isharvested during October-December. Rice, 19.2 percent less than the normal availability, butsugarcane, cotton, maize, mung, mash, bajra and 15 percent less than last year’s Rabi crop (Tablejowar are “Kharif" crops. "Rabi", the second 2.2).Table 2.2: Actual Surface Water Availability (Million Acre Feet) %age incr/decr.Period Kharif Rabi Total Over the Avg.Average system usage 67.1 36.4 103.5 -2003-04 65.9 31.5 97.4 - 5.92004-05 59.1 23.1 82.2 - 20.62005-06 70.8 30.1 100.9 - 2.52006-07 63.1 31.2 94.3 - 8.92007-08 70.8 27.9 98.7 - 4.62008-09 66.9 24.9 91.8 -11.32009-10 67.3 25.0 92.3 -10.82010-11 53.4 34.6 88.0 -15.02011-12 60.4 29.4 89.8 -13.4Source: Indus River System AuthorityI. Crop Situation the agriculture. Thus, four major crops (wheat, rice, cotton, and sugarcane) on average, contributeMajor crops, such as wheat, rice, cotton and 29 percent to the value added in overall agriculturesugarcane account for 91 percent of the value and 6.0 percent to GDP. The minor crops accountadded in the major crops. The value added in major for 10.1 percent of the value added in overallcrops accounts for 32 percent of the value added in18
  3. 3. Agricu ultureagricultur Livestock contributes 55.1 percent to re. (41.9 percent). Th production performanc of he n ceagricultur value ad ral dded–much m more than t the major c crops is docum mented in Ta 2.3. ablecombined contribution of major an minor cro d n nd opsTable 2.3: Production of Major Crop o ps (i thousands of tons) in f CottonYear Sugarcane e Rice R Maize Wheat t (0 bales) 000 13,019 444,666 5,547 3,1100 21,2772005-06 (-8.7) (-5.5) (10.4) (11.2 2) (-1.6) 12,856 544,742 5,438 3,0888 23,2952006-07 (-1.2) (222.6) (-2.0) (-0.7 7) (9.5) 11,655 633,920 5,563 3,6055 20,9592007-08 (-9.3) (116.8) (2.3) (16.7 7) (-10.0) 11,819 500,045 6,952 3,5933 24,0332008-09 (1.4) (-221.7) (25.0) (-0.3) (14.7) 12,914 499,373 6,883 3,261 23,3112009-10 (9.4) (-1.3) (-1.0) (-9.2 2) (-3.0) 11,460 555,309 4,823 3,7077 25,2142010-11 (-11.3) (112.0) (-30.0) (13.7 7) (8.2) 13,595 588,038 6,160 4,271 23,5172011-12(P) (18.6) (4.9) (27.7) (15.2 2) (-6.7)Source: Paakistan Bureau of StatisticsP: Provisio (July-Marc Figures in parentheses ar growth/decline rates onal ch), n re increas in yield pe hectare as compared to last se er sa) Major Crops: year. T area, prod The duction and yyield of cotto for oni) Cotton: the last five years is given in Ta t s able 2.4 and FFigureCotton i an important cash crop whi is h ich 2.1.significan ntly contribut to the nat tes tional econom myby provid ding raw material to th local text m he tile Figu 2.1: Cotton P ure Production (000 bales)industry, surh as cotto lint as an export item. It on . 140 000accounts for 7.8 pe ercent of va alue added inagricultur and 1.6 per re rcent of GDP During 201 P. 11- 135 50012, the ccrop was cult tivated on an area of 28 n 835 130 000thousand hectares, 5.4 percent mor than last ye re ear(2689 th housand hect tares). The production is 125 500reported at 13.6 milli bales dur ion ring the peri iod 120 000(July-Mar rch) 2011-12, higher by 18 percent ov , 8.6 verthe last year’s producttion which w 11.5 milli was ion 115 500bales. The increase in cultiva ated area a and 110 000production is attribute to the use of BT cotto n ed e on, 07-08 08-09 09-10 10-11 11-12(P)control ov widesprea attack of cotton leaf c ver ad curlvirus (CL LCV) and su ucking pests which help s ped Source: P PBSTable 2.4: Area, Produuction and Yie of Cotton eld Area Production YieldYear (000 Hectare) 0 % Change (000 Bales) % Chang ge (Kgs/He ec) % Cha ange2007-08 3054 - 0.7 1165 55 - 9.3 649 -8.72008-09 2820 -7.7 1181 19 1.4 713 9.92009-10 3106 10.1 1291 14 9.3 707 -0.82010-11 2689 -13.4 1146 60 -1 11.3 724 2.42011-12(P) 2835 5.4 1359 95 18.6 1 815 12.6Source: Pakkistan Bureau of Statistics oP: Provisional (July-March) 19
  4. 4. Pakistan E Economic Sur rvey 2011-12 2World Co otton Outloo okThe produ uction and con nsumption of major cotton growing cou f n untries are giv in Table 2 ven 2.5.Table 2.5: Production and Consumpt a tion of Major Cotton Grow wing Countries s (in Millions of To n ons) 200 09-10 20 010-11 E 2011-12 PProduction nChina 6.9 92 6.40 6 7.40India 5.1 18 5.76 5 5.69USA 2.6 65 3.94 3 3.39Pakistan 2.0 07 1.91 1 2.35Brazil 1.1 19 1.96 1 2.00Uzbekistann 0.8 85 0.91 0 0.88Others 3.2 29 4.22 4 5.28World Total 22.1 17 25 5.10 26.96 2Consumpti ionChina 10.1 10 9.59 9 9.38India 4.3 30 4.48 4 4.56Pakistan 2.3 39 2.20 2 2.33East Asia/A Australia 1.8 86 1.75 1 1.63Europe & TTurkey 1.5 55 1.49 1 1.46Brazil 1.0 02 0.96 0 0.90USA 0.7 77 0.85 0 0.70Others 3.3 36 3.17 3 3.01World Total 25.3 36 24 4.49 23.96 2Source: Pa akistan Central Cotton Comm mittee, M/O Tex xtile IndustryE: Estimate P: Provisio ed, onal respecttively. Sugarccane was culltivated on an area n Fig-2.2 Sugarcane Production (0 2: P 000 of 1,04 thousand h 46 hectares, 5.9 p percent higher than r Tons s) last yyear’s level of 988 th housand hec ctares. 65000 Sugarccane production for the year 2011-12 is estimat at 58.0 m ted million tons, in contrast t last to 60000 year’s production of 55.3 million tons. This s n shows an incrrease of 4.9 ppercent over the producti of ion 55000 last ye ear. The mai factors co in ontributing t the to producction are luc crative mark prices of last ket f 50000 year’s produce and timely ava d ailability of iinputs encourraged the farm mers to grow more suga w arcane 45000 crop. H However, the yield per he ectare, if com mpared 07-08 08-0 09 09-10 10-11 11-12(P) ) with la year, pos ast sted a negative growth. The Source: PBS floods of 2010 enhanced the soil fertilit of e ty Sugarccane crop, and as a result, yield per he , ectare posted a growth of 6.9 percen as compar to nt red cane:ii) Sugarc ve 0.9 per negativ rcent this year. How wever,The sugar rcane crop is the second m major cash cr rop producctivity gain c could not be sustained be ecauseand is use as a raw material in th production of ed m he water receded very slowly in sugarcane ar of y rearefined su ugar and gur. Its share in value added in . d lower Sindh. The area, produc ction and yie of eldagricultur and GDP is 3.7 and 0.8 perce re P ent, sugarca for the la five years are given in Table ane ast 2.6 and Figure 2.2. d20
  5. 5. Agricu ultureTable 2.6: Area, Produc ction and Yiel of Sugarcan ld ne Area Produuction YieldYear (000 Hectare) H % Change (000 Tons) % Change (Kgs/Hec c.) % Cha ange2007-08 1241 20.6 63920 16.8 51 1507 -3.22008-09 1029 -17.1 50045 -21.7 48 8635 -5.62009-10 943 -8.4 49373 -1.3 52 2357 7.72010-11 988 4.8 55309 12.0 55 5981 6.92011-12(P) 1046 5.9 58038 4.9 55 5486 -0.9Source: Paakistan Bureau of Statistics uP: Provisio (July-Marc onal ch) producction and yiel of rice for the last five years ldiii) Rice: are sho in Table 2 and Figur 2.3. own 2.7 reRice rank as second amongst the staple food gra ks a aincrops in PPakistan and it has been a major source of i e Figu 2.3: Rice P ure Production (000 Tons)foreign exxchange earni ings in recent years. Pakist t tan 75 500grows a h high quality of rice to fulf the domes o fill sticdemand a also for exports. Ric accounts 4 and ce 4.9 70 000percent of the value added in agri a iculture and 1.0percent of GDP. The sown area f rice is 25 for 571 65 500thousand hectares, 8.7 percent m more than l last 60 000year’s 2365 thousand hectares. The production ofthe crop i an estimate 6160 thou is ed usand tons, 27 7.7 55 500percent mmore than the44823 thousand tons produc d cedlast year. This increase in area is du to 8.7 perce e ue ent 50 000increase i area sown The yield p hectare h in n. per has 07-08 08-09 09-10 10-11 11-12(P) 45 500shown im mproved gro owth of 17 7.5 percent as Source PBS e:compared to -14.6 percent last y d year. The ar rea,Table 2.7: Area, Produc ction and Yiel of Rice ld Area Production YieldYear (000 He ectare) % Change (000 Tons) ( % Change (Kgs/Hec c.) % Cha ange2007-08 2515 -2.6 5563 2.3 3 2212 5.02008-09 2963 17.8 6952 25.0 0 2346 6.12009-10 2883 -2.7 6883 -1.0 0 2387 1.72010-11 2365 -18.0 4823 -30.0 0 2039 -14.62011-12(P) 2571 8.7 6160 27.7 7 2396 17.5Source: Paakistan Bureau of Statistics uP: Provisio (July-Marc onal ch)iv) Wheat: 8901 tthousand hec ctares. The pproduction of 23.5 f million tons is estim n mated during July-March 2 2011-Wheat is the basic staple food fo most of t for the 12. Th yield per hectare in 2011-12 pos he sted apopulation and largest grain source of the count n e try. negativ growth of 4.2 percent a compared to 11 ve asIts impo ortance is always recognized wh hen percent growth last year. This is due to the fac that t ctformulatin agricultur policies. It contribu ng ral utes the sow wing of whea was delaye due to sta at ed anding12.5 percent to the value added in agriculture a and water and other c climatic factoors. Recently the y2.6 percen to GDP. Wheat is cultiv nt W vated in an ar rea governnment has incr reased the pro ocurement pr to riceof 8666 tthousand hecttares in 2011 1-12, showing a g Rs. 10050. This ste would he the farme to ep elp ersdecrease of 2.6 perce over last year’s area of ent 21
  6. 6. Pakistan E Economic Sur rvey 2011-12 2increase its productio and its i on impact will be Fig 2 Wheat Pro 2.4: oduction (000 Tons) 0realized in the later par of 2011-12. n rt . 2700 00The overa decrease in area is du to problems all ue 2500 00farmers faced in th disposal of the wheat he 2300 00produced during last year. Farmers then began to y sincrease ppredisposition of growing early sown B n BT 2100 00cotton and reducing th area of BT cotton sown in d he T n 1900 00rain affect districts of Sindh This phenomenon is ted o ndemonstra in Table 2.8 and Figur 2.4. ated re 1700 00 07-08 08-09 09-10 10-11 11-1 (P) 12 Source: PBSTable 2.8: Area, Produc ction and Yiel of Wheat ld Area Produuction YieldYear (000 he ectares) % Change (000 tons) % Change (Kgs /Hec c.) % Cha anges2007-08 8550 -0.3 20959 -10.0 2451 2 -9.82008-09 9046 5.8 24033 14..7 2657 2 8.42009-10 9132 1.0 23311 -3..0 2553 2 -3.92010-11 8901 -2.5 25214 8.2 2833 2 11.02011-12(P) 8666 -2.6 23517 -6..7 2714 2 -4.2Source: Pak kistan Bureau of Statistics oP:Provision nal(July-Marchh)v) Other Major Crops ion of about 41.3 percen during 2011-12 reducti nt mainly because of u y unfavorable wweather condiitions.During 20011-12, the pr roduction of m maize increas sed The ot ther crops li ike bajra, toobacco, jawar and rby 15.2 ppercent, while rapeseed an mustard ro e nd ose barley also, witness a decline in producti of sed e ionby 5.7 peercent. This is in contras to crops li st ike 12.1 ppercent, 8.7 percent, 2.8 percent and 1.4 dgram, the largest Rab pulses cro in Pakistan, e bi op percent respectivel in 2011-12 as compar to t, ly, redwhere pr roduction stoood at 291 thousand tons, the corrresponding p period last yyear. The area andagainst 49 thousand tons of last y 96 year, showing a g producction of major crops are giv in Table 2 r ven 2.9.Table 2.9: Area and Pro oduction of Ot ther Major KKharif and Rab Crops bi 20110-11 2011-12 (P P) % Change InCrops Area Production Areea Production P production over n (0 hectares) 000 ) (000 tons) (000 hec ctares) (000 tons) ( Last yea arKharifMaize 974 370 07 1083 4271 15.2Bajra 548 34 46 458 304 4 -12.1Jawar 229 14 41 214 137 7 -2.8RabiGram 1054 49 96 1055 291 -41.3Barley 77 71 7 75 70 0 -1.4Rapeseed & Mustard 203 17 76 213 186 6 5.7Tobacco 51 10 03 47 94 4 -8.7Source: Paakistan Bureau of Statistics uP: Provisio (July-Marc onal ch)22
  7. 7. Agricultureb) Minor Crops It is estimated that 10 percent of the totali) Oilseeds availability of edible oil is consumed in industries like cosmetics, paints and other allied products.The major oilseed crops grown in the country Around 200,000 tons of edible oil is exported,include sunflower, canola, cottonseed, rapeseed mainly to Afghanistan. This does not includeand mustard. Although the cotton crop is grown for smuggling through porous borders which is notits lint, cottonseed contributes 50 to 60 percent of accounted for.local edible oil production. At present, totalrequirement of edible oil in the country is 2.045 During the year 2011-12 (July-February) 1.467million tons. During the year 2010-11, the total million tons of edible oil worth Rs. 145 billionavailability of edible oil was 3.079 million tons; of (US$ 1.654 billion) was imported. Localwhich local production contributed 0.696 million production during 2011-12 was 0.636 million tons.tons (34 percent of the requirement); while imports The area and production of oilseed crops duringof edible oil or oilseeds was 2.383 million ton. The 2010-11 and 2011-12 is shown in Table 2.10.import bill reached Rs. 224 billion (US$ 2.611billion) in 2010-11.Table 2.10: Area and Production of Major Oilseed CropsCrops 2010-11 2011-12 (P) Area Production Area Production (000 Acres) Seed Oil (000 Acres) Seed Oil (000 Tons) (000 Tons) (000 Tons) (000 Tons)Cottonseed 6,450 2,934 352 6,958 3,212 385Rapeseed/ Mustard 439 157 50 575 203 61Sunflower 1,108 643 244 877 473 179Canola 223 131 50 27 30 11Total 8,230 3,865 696 8,437 3,918 636Source: Pakistan Oilseed Development BoardP: Provisional (July-Feb) percent, respectively. The area sown for masoor,ii) Other Minor Crops: onion and chillies decreased by 13.8 percent, 14.9The production of mung and potato has increased percent and 65.7 percent, respectively. There wasby 22.0 percent and 17.5 percent, respectively an increase of area sown for mung and potatoes byduring, 2011-12. However, the production of 2.5 percent and 16.2 percent, respectively. Thechillies, onion, masoor (lentil) and mash decreased area and production of minor crops are given inby 78.3 percent, 15.4 percent 12.8 percent and 3.5 Table 2.11.Table: 2.11 Area and Production of Minor Crops 2010-11 2011-12(P) %Change InCrops Area Production Area Production Production (000 hectares) (000 tons) (000 hectares) (000 tons)Masoor 26.1 13.3 22.5 11.6 -12.8Mung 137.4 76.2 140.8 93.0 22.0Mash 24.5 11.3 24.5 10.9 -3.5Potato 159.3 3491.8 185.1 4104.4 17.5Onion 147.6 1939.6 125.6 1640.0 -15.4Chillies 63.6 171.7 21.8 37.2 -78.3Source: Pakistan Bureau of StatisticsP: Provisional (July-March) 23
  8. 8. Pakistan Economic Survey 2011-12II. Farm Inputs natural gas (the raw material for urea) and somei) Fertilizer: urea plants produced less than their production capacity. However, a timely import of ureaFertilizer is Pakistan’s most important and addressed the absence in supply and totalexpensive input in agricultural production. The availability of fertilizer increased by 16.3 percent.contribution of balanced fertilizer use towards Despite the increased supply of urea, totalincreased yield varies from 30 to 60 percent in consumption of fertilizer reduced by 4.9 percent.different crop production areas of the country. One Nitrogen consumption increased by 0.3 percentkg of fertilizer nutrient produces about 8 kg of while that of phosphate decreased by 22.3 percentcereals (wheat, maize and rice), 2.5 kg of cotton and potash by 36 percent. Details of fertilizerand 114 kg of stripped sugarcane. All of Pakistan’s production are presented in Table 2.12.soils are deficient in nitrogen (N), 80 to 90 percentare deficient in phosphorus (P), and 30 percent are The major reason for reduced fertilizerlacking in potassium (K). The wide spread consumption was the effect of heavy anddeficiency of micronutrients is also appearing in destructive rains in the Sindh province during thedifferent areas. Lands used for single crops are monsoon season in 2011, which adversely affecteddepleting soil fertility because lands are using only crop lands. Another reason for the reduction incertain essential plant nutrients and are intensely consumption of fertilizer was the increase in pricecultivated. When these soils go without being of all fertilizers. The prices of urea went up by 81.4replenished, future crops are threatened from loss percent in July-March, 2011-12 as compared to theof micronutrients and other essential plant same period of the last fiscal year. The prices ofnutrients. DAP, CAN and NP also increased by 38.8 percent, 75.5 percent and 45.7 percent, respectively, overThe domestic production of fertilizers from July- the same period last year.March, 2011-12 declined by 1.4 percent whencompared to the last year’s production. Thefertilizer industry experienced a curtailment ofTable: 2.12 Production and Off-take of Fertilizers (‘000’ Nutrient Tons) Domestic % % % %Year Import Total Off-take Production Change Change Change Change2007-08 2822 - 876 - 3698 - 3581 -2008-09 2907 3.0 568 -35.1 3475 -6.0 3711 3.62009-10 3082 6.0 1444 154.2 4526 30.2 4360 17.52010-11 3076 -0.2 645 -55.4 3721 0.6 3933 -9.82010-11 P 2287 - 532 - 2819 - 3064 -2011-12 P 2255 -1.4 1024 92.6 3279 16.3 2913 -4.9Source: National Fertilizer Development CentreP : Provisional (Jul-March)ii) Improved Seed: requirement for sustainable agricultural growth and food security. Effective use of improved andQuality seed is also an essential input for certified seed can result in higher agriculturalimproving yield in Pakistan. Seed has a unique production, which leads to increased net incomesposition among the other various agricultural of farming families. This is the desired positiveinputs because the effectiveness of all other inputs impact of improved seed for greater ruraldepend primarily on the potential of the seeds. development. Hence the availability of quality seedSeed is a high technology product and is an of improved varieties is essential to achieveinnovation readily adapted for Pakistan’s climate. production targets.Improving access to good quality seed is a critical24
  9. 9. AgricultureDuring July-March, 2011-12 about 361.0 thousand acres, were inspected for certificationtons of improved seed of various Kharif/Rabi purposes.season crops were procured. The procurement of A total quantity of 361.0 thousand MT seeds ofseeds for various Kharif crops (cotton, paddy, various corps were sampled and tested formaize, mung bean, etc) is currently underway. The purity, germination and seed health purposes.details of this procurement are demonstrated inTable 2.13. Pre and post control trials of all pre-basic, basic seed lots and 20 percent of certified seedThe Federal Seed Certification and Registration lots were carried out in the fields to determineDepartment (FSC&RD) is engaged in providing the quality of seed distributed by various seedseed certification coverage to public and private agencies.sector seed companies of the country. It provides Under the provision of the Seed Act, five casesseed quality control services through its 28 seed were filed in different courts of law against thetesting laboratories as well as monitoring of seed seed dealers found selling substandard seeds.quality in the market. The activities andachievements of the department during 2011-12 During 2011-12, a total of 13.7 MT ofare described below: imported seed of various crops and hybrids, with a total value of Rs. 3287.6 million, was During the year 2011-12, forty-five (45) new tested under the Seed (Truth in Labelling) seed companies were registered, making the Rules. 1991 at the port of entries i.e. Lahore total number of registered seed companies in and Karachi. the country 774, which includes four public Almost 718 samples of seed and propagating sector and five multinational companies. material of various vegetable and fruit crops Twenty-two (22) new crop varieties were were tested at the Central Seed Testing approved {(5) wheat, (11) cotton, (3) oilseeds, Laboratory, Islamabad for detection of fungal (2) pulses and (1) fodder}. and viral disease using latest diagnosis techniques and protocols. During 2011-12, different crops offered by the various seed agencies, totaling 502.6 thousandTable 2.13: Seed Availability* (Metric Tons)Crop Local Imported TotalWheat 319890.0 0.0 319890.0Cotton 1649.8 0.0 1649.8Paddy 22749.6 2657.1 25406.7Maize 1372.9 3739.3 5112.2Pulses 1189.0 0.0 1189.0Oilseeds 23.5 328.7 352.2Fodders 11.4 1473.6 1485.0Vegetables 256.0 564.6 820.6Potato 145.0 4963.6 5108.6Total 347287.2 13726.9 361014.1Source: Federal Seed Certification & Registration Department* : July-March 2011-12 helps in increasing crop intensity, an aim Pakistaniii) Irrigation hopes to achieve throughout the country. DespiteUniversally an efficient irrigation system is a pre- the existence of a good irrigation canal network inrequisite for higher agricultural production as it Pakistan, large amounts of water are wasted in the 25
  10. 10. Pakistan Economic Survey 2011-12irrigation process because of improper lining of and winter season is presented in Table 2.14.waterways. Rainfall recorded during the monsoonTable 2.14: Rainfall* Recorded During 2011-12 (in Millimetres) Monsoon Rainfall* Winter Rainfall* (Jul-Sep) 2011 (Jan-Mar) 2012Normal 137.5mm 70.5mmActual 236.5mm 34.2mmShortage (-)/excess (+) + 99.0mm -36.3mm% Shortage (-)/excess (+) +72.0 % -51.4%Source: Pakistan Meteorological Department* : Area weighted The canal head withdrawals in April-SeptemberDuring the monsoon season, (July-September), 2011 increased by 13 percent and stood at 60.4the normal average rainfall 137.5 mm, while million acre feet (MAF) as compared to 53.4 MAFthe actual rainfall received in 2011 was 236.5 during the same period last year. During themm, indicating an increase of 99.0 percent. second planting season, October-March, 2011-12,During the winter, (January-March), normal the canal head withdrawals declined to 29.4 MAF,average rainfall during this period is 70.5 mm compared to 34.6 MAF during the same period lastand the actual rainfall received in 2012 was year. The Province-wise details are given in Table34.2 mm,, indicating a decrease of 51.4 2.15.percent under the normal rainfall average.Table 2.15: Canal Head Withdrawals (Below Rim Station) Million Acre Feet (MAF) Kharif Kharif % Change in Rabi Rabi % Change inProvinces (Apr-Sep) (Apr -Sep) Kharif 2011 (Oct-Mar) (Oct –Mar) Rabi 2011-12 2010 2011 over 2010 2010-11 2011-12 Over 2010-11Punjab 29.00 34.29 18 18.73 17.61 -6Sindh 22.61 23.29 3 14.51 10.13 -30Balochistan 1.21 1.86 54 0.88 1.12 27KPK 0.60 0.96 60 0.48 0.56 17Total 53.41 60.40 13 34.59 29.42 -15Source: Indus River System Authority resources. The focus areas of investment in theTo address the water sector issues, strategies water sector are:and future water sector policy, an integratedwater resource management approach, guiding a. Augmentation of surface water resources byprinciples of equity, efficiency, participatory construction of storage small/medium dams.decision making, sustainability andaccountability have been adopted. The strategy b. Conservation measures, or the lining of irrigation channels, included modernizing andis focused on priority investments in the water rehabilitating irrigation systems, lining ofsector to achieve additional water storages and waterways and enhancing efficiency byreorganization for effective and responsive rehabilitating and improving the operation ofinstitutional reforms. Water availability is the existing system.continuously diminishing. The challenge is to c. Protection of infrastructure from onslaught offormulate an effective implementation of a floods and water logging and Salinity.comprehensive set of measures for thedevelopment an efficient management of water d. Introduction of high efficiency irrigation systems i.e. sprinkler and drip.26
  11. 11. AgricultureIt is expected about Rs. 30.00 billion would be following major water sector projects areutilized on the water sector’s programmes under demonstrated in Table 2.16.the Ministry of Water and Power for 2011-12. TheTable: 2.16: Major Water Sector Projects under ImplementationProjects Location Total Live Irrigated Latest Status App.cost Storage Area (Expected up to June 2012) (Rs. In (MAF) (Acres) million)Gomal Zam Dam Khyber 12,829 0.892 1, 91,139 75 % Physically completed PakhtunkhwaGreater Thal Canal * Punjab 30,467 - 1,739,000 Phase-I, completed (3 Phases)Rainee Canal * Sindh 18,862 - 412,400 94 % Physically completed (3 Phases) Phase-IKachhi Canal * Balochistan 31,204 - 713,000 62 % Physically completed (3 Phases) Phase-IRaising of AJ&K 62,553(O) 2.90 All over Physically completedMangla Dam 97,000 (B R) PakistanSatpara Dam Skardu 4,397 0.05 15,536 Physically completedMulti- purposeRight Bank OutfallDrain (RBOD)RBOD-I Sindh 14,707 88% Physically CompletedRBOD-II Sindh 29,014 65% Physically CompletedRBOD-III Balochistan 6,535 75% Physically CompletedSource: Planning & Development Division, Planning Commission* Progress of all three canals is for Phase-I, whereas app. cost is reflected for total project, Revised cost of all threecanals is un-approved, submitted for approval to P&D Division Rs. 1,800 million is expected to be utilized onWater Sector Programmes during (2011-12) lining various irrigation channels in Punjab,These programmes are: Sindh and Khyber Pukhtunkhwa during the year 2011-12. Completion of phase-I of the Greater Thal Canal, substantial completion (60 percent) of An amount of Rs. 1,600 million is expected to Kachhi Canal in Balochistan and Rainee Canal be utilized during the year 2011-12 on (92 percent) in Sindh for irrigating 2.9 million improvement of existing irrigating system in acres. Punjab, Sindh, KPK and Balochistan. Completion of Mangla Dam Raising Project More than Rs. 2.00 billion is expected to be for additional storage of 2.9 MAF and utilized on construction of new small to additional power generation of 644 GWh. medium sized dams across Pakistan; (Winder, Darwat, Nai Gaj and Naulong dam). Completion of Satpara Dam in Gilgit Baltistan for irrigation of 15,536 acres of agriculture In Balochistan, about Rs. 3.00 billion are land and 17.3 MW power generations. expected to be spent on the construction of new small, delay action dams and Substantial completion of Gomal Zam Dam improvement of existing irrigation system and Project in Tribal/ Khyber Pakhtunkhwa (KPK) flood schemes. area for irrigation of 1, 91,139 acres of agriculture land and generation of 17.4 MW In the drainage sector, continued fast track power implementation of the RBOD-1, II & III projects hope to protect and reclaim 4.90 million acres of irrigated land. 27
  12. 12. Pakistan Economic Survey 2011-12iv) Agricultural Credit: The increasing demand for credit is due to an array of factors, such as the rising pressure from theThe role of credit is instrumental in the agriculture quickly expanding population. Credit on foodsector where Pakistani farmers often lack finances resources and high prices of agriculture inputs, andnecessary for carrying out vital farming activities. the reasonable prices of agricultural commoditiesThis issue, if not addressed, can cause a multitude are attracting investment into Pakistan’sof problems, ranging from the exploitation of poor agriculture sector. The Agricultural Creditfarmers at the hands of informal sources of credit, Advisory Committee (ACAC) has allocated anto a slowdown in the adoption of modern farming indicative agriculture credit disbursement target oftechniques and inputs, resulting in slow Rs. 285 billion for 2011-12 as compared to thedevelopment of this chief sector of our economy. target of Rs. 270 billion; (fixed for last year andThe Government of Pakistan and the SBP is the actual credit disbursement of Rs. 263 billioncognizant of the centrality of access to agriculture during 2010-11). Out of the total amount ofcredit in the growth of the agriculture sector, and agricultural credit disbursed, Rs. 195.1 billion wasthey have been making all efforts for the allocated to Commercial Banks, Rs. 70.1 billion topromotion and development of agricultural finance ZTBL, Rs. 12.2 billion went to the Microfinancein the country at affordable prices. As a result, the Banks, (five MFBs included since July 2011), andflow of credit to agriculture sector from banks is Rs. 7.6 billion was allocated to the Punjabshowing improvement. A well-established network Provincial Cooperative Bank Limited (PPCBL).of lending institutions operates to meet the During July-March, 2011-12 five major banks, as afinancial requirements of farmers in the rural areas. group, disbursed Rs 107.7 billion or 76.3 percentCurrently 26 commercial and microfinance banks, of their whole year’s targets. ZTBL disbursed Rswith around 3,900 agriculture designated branches, 37.9 billion or 54 percent of its targets andare facilitating farmers by extending agriculture Domestic Private Banks (DPBs) disbursed Rs 37.3credit throughout the country. These include; ABL, billion or 69 percent of their targets. MFBsHabib Bank Limited (HBL), Muslim Commercial disbursed Rs 8.5 billion or 69.9 percent of theirBank (MCB), United Bank Limited (UBL), two target and the PPCBL disbursed Rs 6.0 billion orspecialized banks, viz, Zarai Tarqiti Bank Limited 79.1 percent of its allocated target.(ZTBL), Punjab Provincial Corporative Bank During the period July-March, 2011-12, bankLimited (PCBL), and 14 private domestic banks. disbursement to the agriculture sector surged by 17Furthermore, five microfinance banks (MFBs) are percent on a year-to-year basis to Rs 197.4 billion,also providing financing to farmers. These banks or 69.2 percent of the target, of Rs. 285 billion.provide credit to the farming community for all This goes in contrast to the disbursement of Rstypes of farming activities such as growing crops, 168.7 billion during corresponding period last year.livestock, poultry, fisheries, orchards, forestry, The details are presented in Table 2.17.nurseries, apiculture and sericulture.Table 2.17: Supply of Agricultural Credit by Institutions (Rs. in Billion) Domestic Total CommercialYear ZTBL PPCBL Private MFBs Banks Rs. Billion %Change Banks2006-07 56. 5 80.4 8.0 24.0 0.0 168.8 22.82007-08 66.9 94.7 5.9 43.9 0.0 211.6 25.32008-09 75.1 110.7 5.6 41.6 0.0 233.0 10.12009-10 79.0 119.6 5.7 43.8 0.0 248.1 6.52010-11 65.4 140.3 7.2 50.2 0.0 263.0 6.02010-11 P 37.4 93.3 4.4 33.7 0.0 168.7 -2011-12 P 37.8 107.6 6.0 37.3 8.5 197.4 17.0Source: State Bank of Pakistan.P: Provisional (July – Mar)28
  13. 13. AgricultureBox-1Credit Disbursement to Farm and Non-Farm SectorThe sector-wise classification reveals that the share of the non-farm sector showed healthy growth and its share inoverall agriculture credit disbursement rose to 36.3 percent in March, 2012. During the period under review Rs125.64 billion was disbursed to the farm sector while credit disbursement to non-farm sector stood at Rs 71.73billion. Last year, an amount of Rs 110.46 billion or 65.5 percent was extended to farm sector and Rs 58.23 billionor 34.5 percent was disbursed to non-farm sector. 2011-12 2010-11 Sector July-March 2011 July-March 2010 A Farm Credit 125.64 110.46 1 Subsistence Holding 70.83 65.97 i Production 68.60 63.97 ii Development 2.23 2.82 2 Economic Holding 33.82 28.68 i Production 33.04 27.94 ii Development 0.78 0.74 3 Above Economic Holding 20.98 15.81 i Production 19.07 15.09 ii Development 1.91 0.72 B Non-Farm Credit 71.73 58.23 1 Small Farms 19.02 12.67 2 Large Farms 52.71 45.56 Total (A+B) 197.36 168.69 Source: SBP employment generation at the rural level. It alsoIII. Forestry helps to reduce income variability, especially inDuring the year 2011-12, forests have contributed cases of crop failure due to a variety of causes.92 thousand cubic meters of timber and 262 Livestock is central to the livelihood of the ruralthousand cubic meters of firewood as compared to poor in the country and can play an important role91 thousand cubic meters timber and 261 thousand in poverty alleviation. It can uplift thecubic meters firewood in 2010-11. socioeconomic condition of Pakistan’s rural masses. The livestock population for the last threeIV. Livestock and Poultry years is given in Table 2.18.A. LivestockThe livestock sector occupies a unique position in Livestock contributed approximately 55.1 percentthe National Agenda of economic development of to the agricultural value added and 11.6 percent tothe present government. The sector provides a net national GDP during 2010-12, against 54.6 percentsource of foreign earnings. Historically livestock and 11.6 percent during the same period last year.has been the subsistence sector dominated by small Gross value added of the livestock sector atholders to meet their needs of milk, food security constant factor cost has increased from Rs. 672and daily cash income. Therefore, livestock is billion (2010-11) to Rs. 700 billion (2011-12);considered a more secure source of income for the showing an increase of 4.0 percent as compared tosmall farmers and landless poor; and, is a source of previous year. 29
  14. 14. Pakistan Economic Survey 2011-12Table 2.18: Livestock Population (Million Nos.)Species 2009-101 2010-111 2011-121Cattle 34.3 35.6 36.9Buffalo 30.8 31.7 32.7Sheep 27.8 28.1 28.4Goat 59.9 61.5 63.1Camels 1.0 1.0 1.0Horses 0.4 0.4 0.4Asses 4.6 4.7 4.8Mules 0.2 0.2 0.2Source: Ministry of National Food Security & Research1 : Estimated Figure based on inter census growth rate of Livestock Census 1996 & 2006The major products of livestock are milk and meat. The production of these products for the last threeyears is given in Table 2.19.Table 2.19: Milk and Meat ProductionSpecies Units 2009-101 2010-111 2011-121Milk (Gross Production) 000 Tons 44,978 46,440 47,951Cow " 15,546 16,133 16,741Buffalo " 27,848 28,694 29,565Sheep2 " 36 36 37Goat " 739 759 779Camel2 " 808 818 829Milk (Human Consumption)3 000 Tons 36,299 37,475 38,690Cow " 12,437 12,906 13,393Buffalo " 22,279 22,955 23,652Sheep " 36 36 37Goat " 739 759 779Camel " 808 818 829Meat4 000 Tons 2,965 3,095 3,232Beef " 1,655 1,711 1,769Mutton " 603 616 629Poultry meat " 707 767 834Source: Ministry of National Food Security & Research1: The figures for milk and meat production for the indicated years are calculated by applying milk productionparameters to the projected population of respective years based on the inter census growth rate of livestock census1996 & 20062 : The figures for the Milk production for the indicated years are calculated after adding the production of milkfrom camel and sheep to the figures reported in the livestock census 2006.3 : Milk for human consumption is derived by subtracting 20% (15% wastage in transportation and 5% in calving)of the gross milk production of cows and Buffalo.4 : The figures for meat production are of red meat and do not include the edible offal’s.The production of other livestock products over the last three years is demonstrated in Table 2.20.Table:2.20 Estimated Livestock Products ProductionSpecies Units 2009-101 2010-111 2011-121Eggs Million Nos 11,839 12,457 13,144Hides 000 Nos 13,040 13,481 13,938Cattle " 6,496 6,741 6,995Buffalo " 6,445 6,640 6,84230
  15. 15. AgricultureTable:2.20 Estimated Livestock Products ProductionSpecies Units 2009-101 2010-111 2011-121Camels " 99 100 101Skins 000 Nos 47,402 48,478 49,582Sheep Skin " 10,495 10,620 10,745Goat Skin " 23,061 23,685 24,237Fancy Skin " 13,846 14,173 14,509 Lamb skin " 3,117 3,154 3,192 Kid skin " 10,728 11,019 11,318Wool 000 Tons 42.0 42.5 43.0Hair " 22.6 23.2 23.8Edible Offal’s " 334 344 353Blood " 56.8 58.3 59.8Guts 000 Nos 47,886 48,974 50,089Casings " 13,879 14,347 14,832Horns & Hooves 000 Tons 48.1 49.5 50.9Bones " 713.4 735.1 757.5Fats " 228.1 234.8 241.7Dung " 1,008 1,039 1,071Urine " 311 320 329Head & Trotters " 208.2 214.0 220.1Ducks, Drakes & Ducklings Million No’s 0.6 0.6 0.5Source: Ministry of National Food Security & Research1 ; The figures for livestock product for the indicated years were calculated by applying production parameters tothe projected population of respective yearsConsequent of 18th Constitutional Amendment, the demand of livestock and livestock products. Thesubjects of animal health and production have been rise in production cost has increased the retailer’sdelegated to the provinces. The Ministry of and consumer’s price index for milk, yogurt, meat,National Food Security and Research created a eggs, and other items. The overall livestock“Livestock Wing”, delegating the following roles: development strategy resolves to foster “private sector-led development”, with the public sector1. Co-ordination of foreign aid and technical providing an enabling environment through policy assistance in the livestock sector and related interventions and playing a capacity building role fields. for improved livestock husbandry practices. The2. Animal Quarantine Departments/ stations/ emphasis will be on improving per unit animal facilities located anywhere in Pakistan. productivity and moving from subsistence to market oriented and then to commercial livestock3. Veterinary drugs, vaccines and animal feed farming in the country to meet the domestic additives. demand and surplus for export. a. Import and export. The Livestock Wing with its redefined mandate b. Procurement from abroad for federal continued regulatory measures that included requirement and for interprovincial allowing import of high yielding animals, semen supplies. and embryos for crossbreeding. It also included4. Livestock, poultry and livestock products; duty free import of veterinary dairy and livestock machinery/equipment, allowing import of feed a. Import and export. inputs, and vaccines at zero rates. In order to b. Laying down national grades. reduce input costs in livestock/poultry feed production, certain feed ingredients, growthThe population growth, increase in per capita promoters and vitamin premixes have been zeroincome and the potential for export is fueling the rated. Sales tax exemption has been allowed to 31

×