Transcript Supply - All about Afghanistan

CHAPTER
2
Chapter Outline:
1
Importance of Agriculture Sector
2
Livestock and its importance
3
Poultry Farming and its importance
4
Fisheries and its importance
5
Beekeeping and its importance
IMPORTANCE OF AGRICULTURE SECTOR:
The specific contributions of agriculture sector to economic
development of a country are as under:
Farm Production:
1.
Food Crops:
a. Wheat
b. Rice
c. Maize
d. Barley
2.
Cash Crops:
a. Cotton
b. Sugarcane
c. Tobacco
d. Oil Seeds and Vegetable Oils
3.
Fruits
a. Pomegranates
b. Apples
c. Melons etc
Agriculture
provides food and fiber:-
The key contribution of agriculture is that it provides food (wheat, rice etc) and fiber
(cotton, jute etc) to the growing population of the country. If a developing country,
whose economy is based on agriculture, fails to meet its food and fiber requirements,
then it has an adverse effect on the economy. The direct effect of the shortage of food
is that its price immediately goes up in the country. With the rise in prices of food, the
nominal wage rates of the labour are forces to go up. As a result in the rise of wages,
the investment and the profits of the industries begin to decline. Employment and
growth is adversely affected.
o Source of Timber (Wood ):
Forestry which is the vital area of agriculture sector is a source
of timber. Timber is very important for furniture making
business , making sports goods, houses construction as well as
shipping industry etc.
o Source of Milk and Honey:
Livestock and Bee-keeping is an important area of agriculture
sector which provides Milk and Honey to the people. Milk and
Honey are very important for the health of the people as well
as they are used as a raw material for various industrial
production.
o Source of Poultry & Fish meat:
Poultry and Fishery are two important areas of agriculture
sector. Poultry farming provides Poultry meat and eggs which
are the basic need of the people now-a-day beside a big
number of people being employed. Similarly fishery also
provides nutritious food to the people as well as earn foreign
exchange for the country.
o Contribution to GNP:Agriculture sector plays a very dominant role by making a
greater contribution to the GDP of the country. As in case of
Afghanistan the contribution of agriculture sector to GDP is
about 30%. It means that despite structural changes n the
economy, the share of agriculture is still at the top amongst all
other sectors of the economy.
o Provision of Capital:
Another key contribution of agriculture is that it provides capital
to the state for meeting the requirement of economic
development. The government can secure the flow of capital out
of agriculture in a number of ways:
• Tax on agriculture income: Agriculture generates capital by
imposing tax on the income of the farmers.
• Purchase of agricultural commodities at relatively low prices:
The government sometimes purchases the agricultural
commodities at low prices and then sells them at higher prices
in the domestic as well as in the foreign market. The difference
in prices so secured is used for development purposes.
• Promoting Rural Savings: another mean of securing capital
from agriculture sector is to encourage farmers to deposit their
saving in banks. The amount thus mobilized is used for
development of farm and non-farm sector.
• Source of Foreign Exchange Earnings:
The countries like Afghanistan which have a vast agriculture
sector can depend upon exportation of agriculture products
like rice, cotton, vegetables, sugarcane, fruits and certain seeds
etc. accordingly, a sufficient amount of foreign exchange can be
earned through the exportation of these agriculture goods.
Such foreign exchange can be utilized to import the necessary
machinery and plants etc which will be helpful in accelerating
the pace of economic development.
• Provide Employment Opportunities:The countries like Afghanistan which have a limited industrial
setup, the agriculture sector serves as a source of big
employment in the country. It is the agriculture sector which
not only provides employment opportunities but it also gives
rise to diversification in such job opportunities. According to an
estimates 60% - 70% of population in LDCs live in rural areas
which are directly and indirectly attached to agriculture.
 Provide Raw
Materials to Agro-based Industries:-
Agriculture sector provides raw materials to the agro-based
industries. For example, agriculture sector provides sugarcane to
sugar mills to convert it into sugar.
The development of textile industry and its allied fields is
entirely attributed to a fairly large cotton production in the
country. Agri-based industries can be established on the basis of
the locally produced raw material.

Market for Industrial Products:The existence of agriculture sector becomes helpful in the
extension of market. The expanding and progressing
agriculture sector means the more incomes of the farmers.
The agricultural development in the country increase the
incomes of the farmers which will be spent on the purchase
of industrial products like TV, Motorcycle, fans, Tractors,
Harvesters, fertilizers etc are made in industries and are
sold in the agriculture sector.

Control Inflation:
Agriculture sector plays vital role in controlling inflation in
the country. By producing more farm production, the prices
of the basic commodities of the agriculture will be reduced
which will help in curbing inflation in the country.

Strategic Importance:For a long time, this has been a view that the terms-oftrade have a tendency to move against agriculture sector,
i.e. the prices of agriculture commodities go on falling while
the prices of industrial goods go on rising. But now-a-days,
because of severe increase in population of the world, the
demand for agriculture goods including crops, livestock,
forestry and fisheries is rapidly increasing and in the coming
future, the demand for agriculture goods is not likely to
come down. This means that agriculture sector will occupy
a strategic importance in the days to come. The food-stuff
can be used as a weapon like oil to put a pressure in the
world politics. Moreover, the self-sufficiency in food-stuff
and its related fields will also be helpful in making an
assurance regarding food security.
LIVESTOCK:
• The term livestock is normally defined as
animals raised to produce milk, meat, work,
and wool.
• It includes beef and dairy cattle, sheep, horses,
goats, buffalos, cows and Camels etc.
IMPORTANCE OF LIVESTOCK
Provide a Steady Food Supply:
Livestock is a source of steady food supply. It provides mutton, beef,
milk etc for the daily consumption for the human being.
Perform Work
Animals are used as motor power for agricultural
operations. They are used for ploughing the
fields.
Provide Transportation:
Animals are used as motor power for transportation purposes. They also
transport agricultural products from one place to another.
Provide Raw Materials to Industry:
It provides essential raw material such as skins, wool, animal hair, bones for some of the
domestic industries like carpets, rugs, leather, footwear etc
Provide Pleasure and Recreation:
Livestock is a source of pleasure and Recreation. Horses are used to play Polo, Horse Races
etc.
Poultry Farming
Poultry Farming….. continued
• Poultry production has emerged
as a good substitute of beef and
mutton.
• Chickens, Ducks and Turkey are
the most important poultry
species
• Today Poultry production is a
large
commercial
industry
worldwide.
Turkey
Importance of Poultry Farming
Chicken and eggs account for a high percentage
of farm income.
• They provide us meat and eggs
• Short period required for growth and
marketing. Other livestock require longer
length of time from birth to market (e.g.
cattle).
• Can adjust rapidly to changing economic
factors
– feed, availability, cost, number of birds on
feed.
Fisheries
Fishery is a sub-sector of agriculture. A
fishery may involve the capture of or
raising fish through fish farming called
aquaculture.
The fisheries sector has great potential to contribute to economic
growth:
•
Provide nutritious seafood to the people
•
Provide Employment Opportunities to million of people
•
Reduce Poverty Level in the country.
•
Earning foreign exchange through fish export
Fisheries…. continued
It is playing a significant role in the national economy by reducing pressure on
demand for mutton, beef and poultry. 1.5 billion people depend upon fish for food,
income & livelihood
Fish are the most heavily traded food commodity and fastest growing international
“agricultural” commodity. Developing countries provide 77% of global fishing
production.
Directly or indirectly, the livelihood of over 500 million people in developing
countries depends on fisheries and aquaculture.
Beekeeping
Beekeeping (or apiculture) is the maintenance
of honey bees commonly in hives, by humans.
A beekeeper (or apiarist) keeps bees in order
to collect honey and beeswax, to pollinate
crops, or to produce bees for sale to other
beekeepers. A location where bees are kept is
called an apiary.
• Provides employment to the people.
• It provides honey for domestic uses for various diseases and
filing the nutritional needs.
• Honey is used in various medicines industries
• Countries are earning Foreign Exchange by exporting
Honey.
• Bees is a source of crops pollination which leads to more
agricultural production.
World honey production and consumption
Country
Production
(1000 metric tons)
Consumption
(1000 metric tons)
Ukraine
71.46
52
Russia
Spain
Germany (*2008)
Hungary
52.13
37.00
21.23
19.71
54
40
89
4
Romania
Greece
France
19.20
16.27
15.45
10
16
30
Bulgaria
Serbia
Denmark (*1996)
11.22
3 to 5
2.5
2
6.3
5
World honey production and consumption
Asia
China
299.33 (average 245)
238
82.34 (average 70)
66
India
52.23
45
South Korea
23.82
27
Vietnam
13.59
0
Turkmenistan
10.46
10
Turkey
Iran
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