The livestock and fishing sectors grew at their fastest pace during the last seven years, and forestry also expanded substantially. But a sharp decline in the growth rate of major crops had a telling impact on the overall performance of the agriculture sector.

In FY15, the agriculture sector grew just 2.9pc against its target of 3.3pc, according to the Pakistan Economic Survey released last Thursday.

A modest increase of 1pc was recorded in the output of all crops taken together, but the production of key crops rose just 0.3pc in the fiscal, against a much bigger growth of 8pc in FY14, the survey revealed.

Provisional estimates show that out of the four key food crops, the production of only one — rice — went up, and that too at a much slower pace (3pc against 22.8pc in FY14). Milled rice production inched up to 7m tonnes against 6.8m tonnes a year ago. The output of the remaining three crops — sugarcane, maize and wheat — declined by 7.1pc, 5pc and 1.9pc respectively to 62.652m tonnes, 4.695m tonnes and 25.478m tonnes.

The production of cotton surged 10pc to14.871m bales in FY15 over the previous fiscal. However, the economic survey showed a 9.5pc increase because it did not take into account the final figures of cotton arrivals in ginneries. But this is unlikely to significantly change the key crops’ overall growth rate.

While the increase in cotton output can be attributed both to expansion in the area under its cultivation (5.5pc) and the rise in per-hectare yield (3.8pc), the production of sugarcane fell as rice and cotton attracted more farmers, resulting in a shrinkage in its cropped area.

The economic survey also noted that an outstanding thing happened in the seed sector: the provision of 27pc certified cotton seeds for sowing in FY16 against just 2.4pc in FY15. This is expected to keep up the production of cotton. Besides, 29 new seed companies were allowed to do business, initially for one year. They would be selling certified seeds of not only cotton but of other crops as well.

Except for gram, moong and potatoes, the production of minor grain and pulses, including millet, sorghum, barley, rapeseed, mustard, masoor and mash, showed a slippery trend. The cumulative output of all oilseeds also dipped, despite a 10pc increase in the area under their cultivation to 3.825m tonnes. Depressed domestic prices of oilseeds, reflecting global trends, were at the heart of this saga.

An outstanding thing happened in the seed sector: the provision of 27pc certified cotton seeds for sowing in FY16 against just 2.4pc in FY15. Besides, 29 new seed companies were allowed to do business, initially for one year

Livestock and poultry: The livestock and poultry sector grew 4.1pc in FY15 against 2.8pc in FY14 chiefly because of increased domestic demand, better availability of bank credit and continued focus of the corporate sector in upgrading technology.

Livestock-breeding also improved with a modest increase in the outreach of veterinary health services. Milk and meat output of cows and goats recorded a modest rise, while poultry meat production surpassed the 1m tonne-mark for the first time. The poultry sector also saw the withdrawal of zero-rating on imports of processed value-added chicken, which helped the local poultry processing industry.

Meanwhile, population growth, urbanisation, rise in per-capita income and export opportunities are some of the main factors that continue to fuel growth in livestock and its products, said the economic survey. The growth strategy for the sector revolves around the policy of “private sector-led development with the public sector providing an enabling environment”.

Examples of the public sector’s enabling role can be found in measures like the allowing of import of high-yielding animals and high quality feed stuff, duty-free import of veterinary and dairy machinery, and livestock insurance for farmers having10 or more animals.

Public-private cooperation also led to higher meat exports, the Pakistan Economic Survey emphasised, adding that 29 proper slaughter houses are currently engaged in exports.

Fishing and forestry: The fishing and forestry sectors posted growths of 5.8pc and 3.2pc respectively in FY15, against 1pc and negative 6.7pc in FY14. The most important development in fishing was the EU allowing seafood exports from five additional companies after having permitted two firms back in FY14.

An EU delegation also recently completed a prior-permission survey in Pakistan and, according to officials, a favourable decision is expected soon.

The economic survey says the total fish production in the outgoing fiscal year went up to 499,000 tonnes against 494,000 tonnes a year ago. The output of marine fish soared to 365,000 tonnes from 345,000 tonnes, but that of inland fish declined.

Fishermen were also said to have converted many of their conventional boats to modular ones, using the technology of lining of fish holds with fibreglass coating.

Some efforts were made in the outgoing fiscal year to better management marine resources. These included training fishermen to use turtle excluding devices (TED). Experimental surveys have been conducted in this regard. Besides, it has been made mandatory for all boats to now use TED.

Published in Dawn, Economic & Business, June 8th, 2015

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