The Islmia University of Bahawalpur

Rangers Campus
Department of Management Sciences

Topic:
Summary of Ch:- 5
Submitted To:
Sir Mumtaz Kazmi
Submitted By:
Majid ali
Roll no 366 (R2)
Section 2014-2018

The Islamia University of Bahawalpur

 Agriculture: Critical Issues
The agrectular sector in Pakistan is classified as containing five sector

Sector 1980 2002/3

Major crops 51.87 40.64
Minor crops 17.22 15.90
Livestock 26.36 38.85
Fisheries 3.53 3.48
Forestry 1.02 1.13

Major crops the largest contribution in g d p from agrectular. the rabi and kharif
season Divided the agrectular calender rabi main food crops and kharif cash crops
.
The agriculture sector of the contribution
in 1949/50, agriculture was by far the largest sector, contribution more than 53 percent to GDP; in 1947
t0 2003 with a total area of 79.61m hectares and t0tal cultivate area in Pakistan was36.3 million
Agriculture product have increase new technology more than available increase demand foreign
domestics. Agricultural productions have much time increase motor crops in Pakistan area under of
these up to 7 percent

In 1960 and 1965 total crops area 53 percent and total production well as minor crops, there has very
increase in 5 times.The pre Green revolution phase , increce varity and faluteleser and biggest change
our production and enterd in modern agrectular. The green revelations story was particular system in
impress the agrectula growth.

Otherwise price of product depends on demand and supply but in agrectular. government can play a
critical role in determining what, and how much to product through its pricing policy. Along with the
right types of seeds
 , water, fertilizer
 and other inputs,
As well an s package of technology and credit the pricing policy of agriculture
inputs and outputs can determine the direction of agricultural pricing policies can also impact
significantly on income distribution, particularly of small farmers. They can also have a noticeable effect
on industrial productivity, urban wage goods, exports and the cost of living, determining the terms of
trade between agriculture and other sector.
Government fixed retail consumer price of food grains at low level which the effect of depressing
market prices for producers. Heavy export duties were levied on cotton for the benefit of the local
textile industry. Monopoly procurement of wheat and rice was resorted to at fixed price which were
deliberately kept low in order to minimize subsidies to consumers. Proceeds from agricultural export
were converts at an overvalued fixed exchange rate. The implicit exchange tax on agricultural export
from 1960 to 1971 average 89 percent. For nearly a decade after independence no systematic attempt
for the development of agriculture was made. The first agricultural development programme in the
country was launched in 1955.

The national commission on agriculture argues that the main role of the support price below the
minimum level at which production remains profitable for good producers. Government has made
progress in reducing price distortion by adjusting administered prices and in some cases liberalizing the
market in question. Output prices of agricultural commodities have generally been brought closer to
farm gate export/import parity levels.

World Bank study examining the extent and degree of rural finance in Pakistan. Credit does play an
important role in agricultural productivity and output. Rural credit reaches few rural household, and
institutional sources provide credit to only a small proportion of rural households. Only 32 percent of all
rural households take loans and a mere 10 percent borrow from pricing of agricultural and output would
be a major element of the dynamic agricultural policies necessary to achieve nation target of agricultural
production.

Gradually rising but stable price can create a suitable economic and psychological framework for
positive response from producers to production incentives and move to the desired cropping Patten.
Official government figure in the 1970 revealed that as much as 80 percent of rural credit was supplied
by informal leader, but with the huge increase in formal credit, the expansion of bank service and
greater monetization, there was a fall in this proportion to out 55 percent by the early 1980.

Despite the early bias and recommendation against tractorization, there has been an astronomical
increase in the number of tractors available in the country.

year number of tractors

1960 1665
1968 16583
1975 double
The debate over whether agriculture should be taxed is a fascinating one, and many reason are given for
and against imposing taxes on agriculture .As much as taxation is an economic issue, where the
government is concerned about increasing its revenue and dealing with the budget deficit it is also a
political issue, where some political lobbies have resisted while other have demanded.

Mechanization means machinery in Pakistan vary late start because government policy main cause of
policy unemployment labor was heavily biased against the smaller farmer in favour of the large and
very large producer. This was despite the fact, the structure of ownership and mode and mean of
production had undergone a radical transformation, with smaller farms emerging at the expense of
larger farmer. While direct production related issues like types of seeds and salinity may have affected
agricultural output, some of the ancillary inputs such as credit and guidelines such as pricing signals, may
also be a cause of poor performance.

The repot of nca is one of batter and more comprehensive document produced by government
Total cropped area in Pakistan which include are sown more than once of 22.15million hectctrces
Finally, without meaningful land and agrarian reforms, many of the problems in Pakistan’s agricultural
sector, will go unaddressed