Importance of agriculture

Agriculture plays a critical role in the entire life of a given economy. Agriculture is the backbone of the economic system of a given country. In addition to providing food and raw material, agriculture also provides employment opportunities to a very large percentage of the population

Today agriculture helps to reduce poverty, improve incomes and improve food security for eighty percent of the poor people in this world. Agriculture products are now a major trade commodity in the world which brings huge revenues to countries. India is one of the largest exporters of food grains like wheat.

Sector based importance of agriculture

1- Increase in Per Capita Income

Per capita income is the annual average income of the individuals of a nation. We derive it by dividing national income on total population. Agricultural sector provides more jobs to unemployed people. & increases the individuals as well as national income.

2- Major Source of Employment

Agriculture sector provides employment to major portion of our labour force. More than 43.0% of our labour force is directly involved in agriculture sector, while 66.7% of our rural population is dependent on agriculture. This is the major sector, which provides employment to a large portion of our population. Agriculture sector is helpful to reduce the unemployment and disguised unemployment.

3- Reduction in Poverty

Agriculture development has significant impact on rural development. I productivity increases in agriculture it reduces poverty and stimulates non-farm employment, too. They are able to get basic services of life such as water supply, sanitation, provision of health and educational facilitates.

4- Supply of Food

Food is the first in basic necessities of the life. The agriculture sector is the sole provider of all type of food like wheat, rice, corn, sugarcane vegetables and fruits etc., to the population engaged in various sectors of the economy. Agricultural sector also provides food to those animals that provide milk, cheese, butter and meat to population to maintain the efficiency.

5- Source of Forex Earning

Agriculture sector is the main source of foreign exchange (forex) earning which is used to import capital goods. Total forex resources of Pakistan is $ 17.1 billion out of which share of agriculture is $2007. 3 million. Major cash crops of Pakistan are cotton, rice, tobacco etc. that is helpful to correct the balance of payment.

6- Supply of Surplus Labour

About 61% population is living in more than 50,000 villages in Pakistan. This sector is the major source for supply of labor force to industrial sector due to farm mechanization and disguised unemployment. In this way an increase in the income of the people leads to improved living standard.

7- Source of National Income

At the time of partition, contribution of agriculture sector to GNP was 60%, which

decreased to 29.4% in 1980-81. Now its share to GDP is 23.9% in 2016. Accordingly, agricultural sector is the major contributor to Pakistan's national income.

8- Supply of Raw Material Agricultural sector provides not only food but also provides cotton, sugarcane, tobacco, rice, oil-seed, meat and milk to various agro-based, small scale and large-scale industries as a raw material.

9- Development of Industrial Sector

There is inter-dependence and inter-relationship between agricultural and industrial sector, both are helpful to develop each other. Due to use of modern techniques of production in agricultural sector, when income of the agriculturists increases, they will demand for industrial articles, like threshers, harvesters, tractors, tub-wells and various other consumer goods, which results in industrial growth and development.

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