This explains why a shrinking agriculture sector (in relative terms) is a major source of increasing income and living standards in rural areas, an important source of inputs for the industry, and produces enough food for a fast growing urban population all over the world. Some of the major role of agriculture in economic development of a country are as follows: Agricultural sector plays a strategic role in the process of economic development of a country. Retrieved from www.worldbank.org. Agriculture is the basic source of food supply of all the countries of the world—whether underdeveloped, developing or even developed. Market Contribution.
14. As these resources are productive in nature, we call the transfer of these … According to our current 5th phase and the previous governments “Agricultural progress is essential to provide food for growing non-agricultural labour force, raw materials for industrial production and saving and tax revenue to support development of the rest of the economy, to earn foreign exchange and to provide a growing market for domestic manufactures.”. The following points highlight the three types of contribution that agriculture has made towards economic development. To reduce this inequality of income, it is necessary to accord higher priority to agriculture.

Income diversification provides higher off-farm income alternatives that complement agricultural activities, like the service-related, tourism activities in the rural areas of Costa Rica. San José, Costa Rica, Phone (+506) 2216 0222 • Fax (+506) 2216 0233 This is mainly due to increases in productivity, knowledge and capital intensification in agriculture. Increase in agricultural productivity leads to increase in the income of rural population which in turn leads to more demand for industrial products, thus development of industrial sector. Thus, the capacity to import capital goods and machinery for industrial development depends crucially on the export earning of the agriculture sector. However, primary goods face declining prices in international market and the prospects of increasing export earnings through them are limited. We are of the opinion that in view of the urgent need for enlarged foreign exchange earnings and the lack of alternative opportunities, substantial expansion of agricultural export production is frequently a rational policy even though the world supply—demand situation for a commodity is unfavourable. Thus it continues to create effective demand even during adverse conditions of the economy. The measure of agricultural output as the Agricultural Gross Domestic Product (AgGDP) does not include the agribusiness sector, neither the agricultural forward and backward linkages with the rest of the economy, nor the multiplier effect of the sector through income changes. The development of agricultural sector has minimised the burden of several developed countries that were facing the shortage of foreign capital. The progress in agricultural sector provides surplus for increasing the exports of agricultural products. In other words, primary agriculture in countries like the United States can contribute far less than 1% to overall GDP, but one dollar of primary agriculture generates close to 2 dollars in agribusiness valued added. If the agricultural sector does not grow at a faster rate, it may result in the growing discontentment amongst the masses which is never healthy for the smooth running of our democratic government. Agriculture makes its contribution to economic development in following ways: By providing food and raw material to non-agricultural sectors of the economy, by creating demand for goods produced in non-agricultural sectors, by the rural people on the strength of the purchasing power, earned by them on selling the marketable surplus, by providing investable surplus in the form of savings and taxes to be invested in non-agricultural sector, earning valuable foreign exchange through the export of agricultural products, and by providing employment to a vast army of uneducated, backward and unskilled labour.
The flour mills, rice shellers, oil and similar mills, bread, meat, milk products sugar factories, wineries, jute mills, textile, leather mills including pharmaceutical and numerous other industries are based on agricultural products. Due to heavy pressure of population in underdeveloped and developing countries and its rapid increase, the demand for food is increasing at a fast rate.

Vásquez de Coronado, San Isidro 11101 - Costa Rica. Role of Agriculture in Economic Development: The agriculture sector is the backbone of an economy which provides the basic ingredients to mankind and now raw material for industrialisation. Initially, agriculture absorbs a large quantity of labour force. Furthermore, as countries developed, agriculture value added per worker increases significantly. If the agricultural sector does not grow at a faster rate, it may result in the growing discontentment amongst the masses which is never healthy for the smooth running of democratic governments. If agriculture fails to meet the rising demand of food products, it is found to affect adversely the growth rate of the economy. This method is adopted by Russia and China. These rural units fulfill merely local demands. The rising agricultural surplus caused by increasing agricultural production and productivity tends to improve social welfare, particularly in rural areas. Generally, landless workers and marginal farmers are engaged in non-agricultural jobs like handicrafts, furniture, textiles, leather, metal work, processing industries, and in other service sectors. It will impede the growth of the country’s economy.

Purchase of industrial products such as pesticides, various farm machineries etc. They lead a comfortable life having all modern amenities—a better house, motor-cycle, Bajaj, radio, television and wearing of better clothes. Agriculture is the basic source of food supply of all the countries of the world—whether underdeveloped, developing or even developed. Thus development of agriculture sector is also relevant on political and social grounds.

Such growth indicators (rendered in constant prices) provide only a partial view of agriculture’s performance. Malthusian theory of population growth is becoming true in these countries; hence, the need to grow and develop agriculture to meet the food requirement of the people is very important.

​​​​​​​UGANDAN President Yoweri Museveni.


Ceva Logistics Employees, Zechariah 14, Lake Vermilion Mn Map, Camping On Top Of Yonah Mountain, Sunscreen And Climate Change, Aps Enrollment And Registration, Mcdonough High School Maryland, Colgate Gum Vs Sonicare, Upson County Hospital, Deceleration Formula Gcse, Innovation Foundation, Bremen Ga Football Schedule 2020, What Makes A Person To Be A Good Mother Essay, Richmond Raceway Weather, Roadside Attractions New Mexico, How Old Is Mike Murdock, Orlando Police Budget Breakdown, Knox County Ky Public Records, Environmental Protection And Enhancement Act Alberta, Knox County, Ky, Red Lion Inn Stockbridge, Ma, Hale County, Alabama Public Records, Kahn Jr, Blue Star Line Shipping Company, Ice Detainee Locator, Best Beaches East Sicily, Bobbi Brown Products, Importance Of Technological Innovation, Bowral Rainfall Records, Kw Black Lives Matter Donate, Bardstown Bourbon, Packer Uniforms Today, Georgia Cities By Population, Supernatural Black Eyes, Gwinnett County Schools Jobs, Chris Geere Height, Zipcar Uk, Atticus Shaffer The Middle, Jacqueline Robbins Movies, Clewiston, Fl To West Palm Beach, Arsenal Vision Podcast Clive, Mom's Organic Market Protest, Beyond The Veil Idiom, Musée Des égouts De Paris, Objectives Of Environmental Protection Organization, Minister Of Housing, Effingham County High School, Ccps Email,