2019-2020 PERFORMANCE OF AGRICULTURAL SECTOR OF PAKISTAN

Agriculture is still the largest sector of the economy of Pakistan in terms of labor participation
and as such livelihood of the majority of the population directly or indirectly depends on it.
However, during the last few decades, its contribution to GDP has gradually decreased to 19.3
percent however there is a lot of potential in the sector to increase its share in GDP through
increased productivity utilization of latest agricultural technologies. Being the sector engaging
the largest workforce and providing raw material to most manufacturing sector, its
development not only contributes towards achieving poverty alleviation but can also uplift
socio-economic structure (refers to society related economic factors. These factors relate to
and influence one another. For example, your employment will dictate your income, your
income level often correlates to your level of education, and your level of education helps to
dictate your employment) of a major segment of the population. During FY2020, the
performance of agriculture sector improved over the last year and it also performed better than
other sectors. However, the challenges due to climate change, pest attacks, shortage of water
etc., kept agriculture production far less than the potential. One key issue related to agriculture
is that the farmers have limited direct access to the market due to which the role of middleman
remains crucial. And farmers normally do not receive fair market price of their produce. In
terms of potential, agriculture sector has the capacity to not only produce for the domestic
population but to have surplus production for exports, which can ensure food security as well
as contribute towards foreign exchange earnings.

WHAT GOVERNMENT TAKES THE STEP TO MODIFY THE AGRICULTURAL AND

LIVESTOCK SECTORS;
Realizing the potential of agriculture and taking knowledge of the challenges/issues related to
agriculture, the present government has introduced “Prime Minister Agriculture Emergency
Program” worth Rs 277 billion to modify the agriculture and livestock sectors. The objectives of
the program include improvements in water availability, soil conservation and shrimp farming.
In addition, the program also includes establishing new agriculture markets which will protect
farmers from the exploitation of middlemen. The program’s vision is “food secure Pakistan,
based on modern and efficient food production and distribution systems, can best contribute
towards global stability and peace”.

Effect of pandemic on agricultural sector;

The recent pandemic COVID-19 poses extraordinary challenges for almost all sectors of the
economy of Pakistan. The survey noted that there was no significant impact of COVID-19 on the
agriculture sector. Cotton and sugarcane posted negative growth of 6.92 percent and 0.44
percent respectively. The need for maintaining food security and livelihoods has also gained
more importance. The cereal markets (wheat, maize, rice, barley, oats, rye) are expected to
remain balanced and comfortable despite uncertainties over the impact of COVID-19. As
logistical issues may pose challenges to food supply it is important to take measures for
boosting agriculture production which will contribute in reducing the socio-economic impact of
COVID-19.

Agriculture Performance during FY2020;

Pakistan has two cropping seasons.

 Kharif
 Rabi

Kharif;
"Kharif", the first sowing season, starts from April to June and is harvested from October to
December. Rice, sugarcane, cotton, maize, moong, mash, bajra and jowar are “Kharif" crops

Rabi;
"Rabi", the second sowing season, begins from October to December and is harvested from
April to May. Wheat, gram, lentil (masoor), tobacco, rapeseed, barley and mustard are "Rabi"
crops. Pakistan’s agricultural productivity is dependent upon the timely availability of water

Performance of kharif crops in 2019-2020;

Performance of “Kharif” crops; Rice production increased by 2.9 percent to 7.410 million tones
and Maize production by 6.0 percent to 7.236 million tons while Cotton production declined by
6.9 percent to 9.178 million bales and Sugarcane production declined by 0.4 percent to 66.880
million tones.

Performance of rabi crops in 2019-2020;

Wheat is the most important crop of “Rabi”, which showed growth of 2.5 percent and reached
to 24.946 million tones. Other crops having a share of 11.53 percent in agriculture value
addition and 2.23 percent in GDP, showed growth of 4.57 percent mainly due to increase in
production of pulses, oilseeds and vegetables. Cotton ginning declined by 4.61 percent due to
decrease in production of cotton crop.

Crop sector overall experience;

Thus, the crops sector, overall, experienced a growth of 2.98 percent due to increase in growth
of important crops by 2.90 percent mainly due to sufficient availability of inputs (adequate
water, certified seeds, pesticides, and an uptick in credit disbursement) despite lower fertilizer
off-take.

Livestock having share of 60.56 percent in agriculture and 11.69 percent in GDP achieved the
growth at 2.58 percent.
The Fishing sector having share of 2.06 percent in agriculture value addition (and 0.40 percent
in GDP), grew by 0.60 percent, while

Forestry sector having share of 2.13 percent in agriculture (and 0.41 percent in GDP) grew by
2.29 percent.
Thus, the performance of Agriculture during 2019-20 remained remarkable. On the aggregate,
the sector recorded strong growth of 2.67 percent considerably higher than 0.58 percent
growth achieved last year.

SECTOR FY 2019 FY 2020

AGRICULTURE 0.58 2.67
CROPS -4.96 2.98
1- IMPORTANT CROPS -7.68 2.90
2- OTHER CROPS 2.59 4.57
3- COTTON GINNING -12.74 -4.61
LIVESTOCK 3.82 2.58
FORESTRY 7.87 2.29
FISHING 0.80 0.60

Availability of water in kharif or rabi crops;

During 2019-20, the total availability of water for the Kharif crops 2019 reached to 65.2 million-
acre feet (MAF) showing an increase of 9.4 percent over 59.6 MAF of Kharif 2018 while it
remained less by 2.8 percent against the average system usage of 67.1 MAF. During Rabi
season 2019-20, the total water availability reached to 29.2 MAF, showing an increase of 17.7
percent over Rabi 2018-19 and 19.8 percent less than the normal availability of 36.4 MAF.

PERIOD KHARIF RABI TOTAL % age

increase/decrease
over the average
system usage
(103.5 MAF
AVERAGE 67.1 36.4 103.5 -
SYSTEM USAGE
2018-19 59.6 24.8 84.4 -18.5
2019-20 65.2 29.2 94.4 -8.8

I. Crop Situation;
The important crops (wheat, rice, sugarcane, maize and cotton) account for 21.73
percent in the value addition of agriculture sector and 4.20 percent in GDP. The
other crops account for 11.53 percent in the value addition of agriculture sector and
2.23 percent in GDP. The production of important crops.

YEAR COTTON SUGARCANE RICE MAIZE WHEAT

2018-19 9.861 67.174 7.202 6.826 24.349
-17.5 -19.4 -3.3 15.7 -2.9
2019-20 9.178 66.880 7.410 7.236 24.946
-6.9 -0.4 2.9 6.0 2.5

a) Important Crops
i) Cotton;
Being a major cash crop of Pakistan, cotton is considered the backbone of the
economy. It contributes about 0.8 percent to GDP and 4.1 percent of total value
addition in agriculture. During 2019-20, was sown on an area of 2,527 hectares,
which increased by 6.5 percent over last year’s area (2,373 hectares).
Cotton production is estimated at around 9.178 million bales, which is lower by 6.9
percent over the last year’s production of 9.861 million bales. Even though the
overall area increased over last year, the overall performance remained below due
to unfavorable weather and low water availability during important stages of plant
development along with pest attacks.
Area, Production and yield of cotton;

YEAR AREA PRODUCTION YIELD

(000 Hectare) % Change (000 Bales) % Change (Kgs/Hec) % Change

2018-19 2.373 -12.1 9.861 -17.5 707 -6.1

2019-20 2,527 6.5 9,178 -6.9 618 -12.6
 ii) Sugarcane;
Sugarcane is a high value cash crop significance for sugar and sugar related
industries in Pakistan. It contributes about 0.6 percent to GDP and 2.9 percent
addition in agriculture. During 2019 sugarcane production decreased by 0.4 to
66.880 million tons as compared to 67.174 million tons of last year. The output may
depict the pattern of cultivation.
i.e. 1,040 thousand hectares compared to 1,102 thousand hectares, a decline of 5.6
percent, with improved yields compared to 2018-19. The area, production the last
two years.
Area, Production and yield of sugarcane;

YEAR AREA PRODUCTION YIELD

(000 Hectare) % Change (000 Tones) % Change (Kgs/Hec) % Change
2018-19 1,102 -17.9 67,174 -19.4 60.956 -1.8

2019-20 (P) 1,040 -5.6 66,880 -0.4 64,308 5.5

iii) Rice;
Being a main food as well as cash crop, rice holds an important place in the
agriculture of Pakistan. After wheat, it is the second main staple food crop and
second major exportable commodity after cotton. It contributes 3.1 percent of value
added in agriculture and 0.6 percent in GDP. During 2 cropped area of 3,034 million
 hectare increased by 8.0 percent compared to 2,810 thousand hectares of last year.
The production increased by 2.9 percent to 7.410 million tons against 7.202 million
tons driven in part by higher domestic prices and availability of inputs on subsidized
rates. area, production and yield of rice last five years are shown below.
Area, Production and yield of rice;

YEAR AREA PRODUCTION YIELD

(Hectare) % Change (000 Tones) % Change (Kgs/Hec) % Change

2018-19 2,810 - 3.1 7,202 -3.3 2.563 -0.2

2019-20(P) 3,034 8.0 7,410 2.9 2.442 -4.7

iv) Wheat;
Wheat accounts for 8.7 percent to value addition in agriculture and 1.7 percent
Wheat crop production increased percent to 24.946 million tons over last year’s
production of 24.349 million tons. The area under cultivation increased percent to
8,825 thousand hectares over last year’s area (8,678 thousand hectares). The
production increased due to increase in cultivated area, healthy grain formation and
better crop yield. The position over the last two years are given below .
Area, Production and yield of wheat;

YEAR AREA PRODUCTION YIELD

(Hectare) % Change (000 Tones) % Change (Kgs/Hec) % Change

2018-19 8,678 -1.4 24,349 -2.9 2.806 -1.6

2019-20 8.825 1.7 24.946 2.5 2.827 0.7

v) Maize;
In Pakistan, after wheat and rice, Maize is the third important cereal crop. It
contributes 2.9 percent to value agriculture and 0.6 percent to GDP.
During 2019-20, maize was cultivated on 1,413 thousand hectares and recorded an
increase of 2.9 percent over last year’s 1,374 thousand hectares. Its production
 increased by 6.0 percent to 7.236 million tons compared to last year’s production
6.826 million tons. The production increased due to increase in area and availability
of improved variety of seed as well as economic returns. The position over the last
two years are given below.
Area, Production and yield of maize;

YEAR AREA PRODUCTION YIELD

(Hectare) % Change (000 Tones) % Change (Kgs/Hec) % Change

2018-19 1,374 9.8 6,826 15.7 4.968 5.3

2019-20 1,413 2.9 7,236 6.0 5.121 3.1

b) Other Crops;
During 2019-20, gram production increased by 21.9 percent to 545 thousand tons
on account of higher yield due to favorable weather condition prevalent at the time
of sowing.
The production of Bajra and Tobacco increased by 9.7 percent and 5.8 percent. The
production of Jawar decreased by 19.5 percent to 120 thousand tons.
The production of Barley and Rapeseed & Mustard remained same. The area and
production of other crops are given below.
Area and Production of other kharif and rabi crops;

CROPS 2018-19 2019-20 % Change in

Area Production Area Production production
(Hectors) (Tons) (Hectors) (Tons) over Last year
Bajra 456 350 522 384 9.7
Jowar 241 149 199 120 -19.5
Gram 943 447 940 545 21.9
Barley 57 55 53 55 0.0
Rapeseed & 237 302 349 302 0.0
Mustard
Tobacco 45 104 47 110 5.8
 During 2019-20, the production of Chilies and Moong increased by 34.5 percent and
12.6 percent, respectively compared to production of last year.
However, the production of pulse Mash, Potato and Onion decreased by 5.8
percent, 5.3 percent and 1.0 percent, respectively compared to last year’s
production.
The production of Masoor remained the same of last year’s production. The area
and production of other crops are given below.
Area and Production of other crops;

CROPS 2018-19 2019-20 % Change in

Area Production Area Production production
(Hectors (Tons) (Hectors) (Tons) over Last year
Masoor 12.9 6.0 10.4 6.0 0.0
Moong 163.2 117.8 186.7 132.7 12.6
Mash 14.1 6.9 13.9 6.5 -5.8
Potato 195.7 4,869.3 188.6 4,609.6 -5.3
Onion 148.3 2,079.6 146.1 2,058.2 -1.0
Chilies 47.3 101.7 57.8 136.8 34.5

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