Presentation Topic:

Critical Issues of Agriculture

Presentation to:
Dr Rizwan Yaseen

Presented by:
M.Asad Roll No: 5117
MS.c Economics
3rd semester
Critical issues
 Introduction
 Agriculture sector feeds the people and
provides raw material for industries and
finally serves as a market for industrial
products.
 The agriculture is a major sector of the
economy.
 It’s total area is about 70.64 million
hectares.The cultivated area is 27.76 % and
5.35% is under desert , mountain etc.
 Classifications of Agriculture
 Major Crops

 Minor crops

 Live stock

 Fisheries

 Forestry
 Agricultural contribution to GDP%
Agricultural 1949/50 1980/1 2002/3 2011/12

Major crops 52.0 51.87 40.64 31.9

Minor crops 12.5 17.22 15.90 10.1

Live stock 34.4 26.36 38.85 55.1

fisheries 0.7 3.53 3.48 1.8

Forestry 0.5 1.02 1.13 1.1

 Critical Issues Of Agriculture

 Lack of Capital
 Lack of Technology
 Lack of Education
 Water logging & Salinity
 Uneconomic holding
 Under Utilization of Land
 Lack of Water
 Lack of Credit
 Natural Climate
 Inadequate use of inputs
 Inadequate agriculture research
 Lack of Agro based industries
 Market imperfection
 Unstable prices
 Lack of Infrastructure facilities
 Inferior qualities of seeds
 High cost of production
 Consumption oriented society
 Population pressure
 Primitive techniques of production
 Illiteracy
 Political instability
 Lack of Proper Supervision
Land Utilization: 1947-2012(in Millions of Hectares, with
a Total Area of 79.61 Million Hectares)
Year Reported Not Total Area sown Total
area available for area More than cropped
cultivation cultivated once area
1947/8 46.70 20.82 14.69 0.95 11.63
1960-65 50.52 18.94 17.78 1.68 15.08
1965-70 52.98 19.08 19.19 1.99 16.28
1970-75 53.53 20.50 19.21 2.54 17.04
1975-80 54.27 20.62 19.84 3.30 18.44
1980-85 56.29 21.29 20.32 4.09 19.68
1985-90 57.87 23.97 20.78 4.79 20.49
1990-95 58.04 24.49 21.17 5.70 21.86
1995-2000 59.12 24.51 21.90 6.37 22.83
2000-05 59.43 24.31 22.17 6.78 22.35
2005-10 57.13 23.20 21.67 7.66 23.66
2010-12p 57.76 23.4 22.1 7.03 22.73
Current Data
 Agricultural pricing policy
 Agricultural pricing policy refers to
determine the prices of an agricultural
inputs and outputs so that an incentive
to produce certain goods in desired
quatities
 Objective of Agricultural pricing
policy
 To remove uncertainty
 To increase production
 Investment
 To use better inputs
 Increasing output of exporting crops
 For economics growth
 Better use of resources
 Farm Mechanization
 What is farm mechanization?

Farm mechanization means the use of

advance and modern machines and
technologies in agriculture sector
 Major kinds of Farm
Mechanization

 Mechanical technology
 Chemical technology
 Hydro logical technology
 Impact of farm Mechanization

 Increase in productivity
 Reduce losses
 Increase in Income
 Standard of living
 Increase in wages
 Use of chemical
 Water supply
 Farm Reporting Use Of Importing
Agriculture Machinery
Farm All farms Tractors Tube Wells/Pumps
Size(acre
s) Owned Rented Owned Rented
All sizes 4,449 285 3288 479 1,422
100% 100% 100% 100% 100%
Under 5.0 2097 31 1,617 113 745
47% 11% 49% 24% 52%
5.0-12.5 1,521 82 1,151 181 485
34% 29% 35% 38% 34%
12.5-25.0 553 77 375 101 144
12% 27% 11% 21% 10%

25.0-50.0 198 57 112 54 38

4% 20% 3% 11% 3%

50.0- 69 31 30 25 9
150.0 2% 11% 1% 5% 1%
150.0and 11 7 3 5 1
above 0.25% 2.46% 0.09% 1.04% 0.07%
 Number of Private Tractors by
Horsepower
Units Total Below 26-35 36-45 46-55 56-65 Above Not
tractors 26 65 reported

Pakistan 400,446 371 448 17,385 310,52 50,971 20,149 598

4
Punjab 331,273 85 405 16,442 255,15 40,215 18,434 534
8
Sindh 36,082 4 19 255 28,325 6,428 1,047 4

KPK 23,967 282 13 388 18,780 3,980 472 52

Balochistan 9,124 - 11 300 8,261 348 196 8

 Agricultural Income Tax
 Agricultural income derived by a person
shall be exam under the ordinance 2001.
 Any rent or revenue derived by a person
from a land which is situated in pakistan
and use for agricultural purpose.
 Taxation is an economics issues where the
government is concerned about increasing
its revenue and dealing with the budget
deficit.
 Arguments Against Income Tax
On Agriculture
 Agriculture sector is a ready taxed through the
provincial agriculture income tax ordinance.
 Agriculture income tax will only burden poorer
farmers and in turn adversely effect the
performance of the agricultural sector.
 The percentage of larger land holding have
decreased due to inheritance laws ,
conversion of agricultural land into residential
colonies etc.
 Between 1970&1990 the average farm size fell
from 13.0 to 9.4 acres.
 Arguments Against Income On
Agriculture
 Agricultural income tax can be made
progressive those who earn more, pay
more.
 It is unfair and illogical to make a distinction
between agricultural and non-agricultural
incomes for purpose of taxation just as
incomes below a certain level are
exempted from tax in case of non-
agricultural incomes the same principle
should be extended to agricultural income.