Farmers Review Africa Sept/Oct 2018 FRA - September - October 2018 digital 5 | Page 43

high percentage in agriculture is as a
result of none development of non-
agricultural activities to absorb the fast-
growing population. However, most
people in developed countries do not
engage in agriculture.
• Contribution to National revenue
Agriculture is the main source of
national income for most developing
countries. However, for the developed
countries, agriculture contributes a smaller
per cent age to their national income.
• Supply of Food as well as Fodder
Agricultural sector provides fodder
for domestic animals. Cow provides
people with milk which is a form of
protective food. Moreover, livestock
also meets people’s food requirements.
• Significance to the International Trade
Agricultural products like sugar, tea,
rice, spices, tobacco, coffee etc.
constitute the major items of exports
of countries that rely on agriculture. If
there is smooth development practice
of agriculture, imports are reduced
while export increases considerably.
This helps to reduce countries
unfavorable balance of payments as
well as saving foreign exchange. This
amount may be well used to import
other essential inputs, machinery, raw-
material, and other infrastructure that
is helpful for the support of country’s
economic development.
•Marketable Surplus
The growth of agricultural sector
contributes to marketable surplus.
Many people engage in manufacturing,
mining as well as other non-
agricultural sector as the nation
develops. All these individuals rely on
food production that they might meet
from the nation’s marketable surplus.
As agricultural sector development
takes place, production increases and
this leads to expansion of marketable surplus.
This may be exported to other nations.
•Source of Raw Material
The main source of raw materials to
major industries such as cotton and
jute fabric, sugar, tobacco, edible as
well as non-edible oils is agriculture.
Moreover, many other industries such
as processing of fruits as well as
vegetables and rice husking get their
raw material mainly from agriculture.
•Significance in Transport
Bulks of agricultural products are
transported by railways and roadways
from farm to factories. Mostly, internal
trade is in agricultural products.
Moreover, the revenue of the
government, to a larger extent, relies
on the success of agricultural sector.
•Foreign Exchange Resources
The nation’s export trade depends
largely on agricultural sector. For
example, agricultural commodities
such as jute, tobacco, spices, oilseeds,
raw cotton, tea as well as coffee
accounts for approximately 18 % of
the entire value of exports of a country.
This demonstrates that agriculture products
also continue to be important source of
earning a country foreign exchange.
• Employment Opportunities
Construction of irrigation schemes,
drainage system as well as other such
activities in the agricultural sector
is important as it provides larger
employment opportunities. Agriculture
sector provides more employment
opportunities to the labor force that
reduce the high rate of unemployment
in developing countries caused by the
fast growing population.
• Economic Development
Since agriculture employs many
people it contributes to economic
development. As a result, the national
income level as well as people’s
standard of living is improved. The
fast rate of development in agriculture
sector offers progressive outlook
as well as increased motivation for
development. Hence, it aids to create
good atmosphere for overall economic
development of a country. Therefore,
economic development relies on the
agricultural growth rate.
• Source of Saving
Development in agriculture may also
increase savings. The rich farmers we
see today started saving particularly
after green revolution. This surplus
quantity may be invested further in the
agriculture sector to develop the sector.
• Food Security
A stable agricultural sector ensures
a nation of food security. The main
requirement of any country is food
security. Food security prevents
malnourishment that has traditionally
been believed to be one of the major
problems faced by the developing
countries. Most countries rely on
agricultural products as well as
associated industries for their main
source of income
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