The Economic Survey 2007-08 revealed that the growth performance of agriculture over the last six years has been of a volatile nature, ranging from 1.5 percent to 6.5 percent. Agriculture performed poorly in 2007-08 growing at 1.5 percent against 4.8 percent targeted growth.
Major crops and forestry registered a negative growth of 3 percent and 8.5 percent respectively. Major crops, accounting for 34 percent of agriculture and 7.1 percent of GDP suffered on account of poor showing of wheat and cotton and less than satisfactory performance of rice.
The cotton crop suffered for a variety of reasons including heavy rainfall in May 2007 causing poor germination in Punjab, high temperature in August and September 2007. The crop was sown on the area of 3,054 thousand hectares, 0.6 percent less than the last year. Consequently the production declined to 11.7 million bales this year from 12.9 million bales last year indicating a negative growth of 9.3 percent.
The wheat crop was adversely affected by the shortage of irrigation water by 23.3 percent over normal supplies during Rabi and inordinate spike in prices of DAP fertiliser. Wheat was cultivated on an area of 8,414 thousand hectares showing 1.9 percent decrease over the last year's area of 8,578 thousand hectares. Accordingly, the production declined to 21.7 million tons from 23.3 million tons last year, thus indicating a downward trend of 6.6 percent.
During the last 12 years, per capita availability of wheat was less than 124 kg in eight years and only four years that it remained above the required level.
The two other major crops performed better with sugarcane recording highest ever production level of 63.9 million tons that is 16.8 percent higher than the last year while the production of rice witnessed a modest growth of 2.3 percent and stood at 5.6 million tons.
Minor crops accounting for 12 percent in agriculture value added posted a growth of 4.9 percent against the negative growth of 1.3 percent last year. The production of all the crops increased except potato, which declined by 3.8 percent. The production of all the pulses ie mung, masoor and mash increased by 28.4 percent, 13.8 percent and 8.8 percent respectively. The performance of livestock accounting for 52.2 percent of agricultural value added, was satisfactory at 3.8 percent.
The performance of fisheries has been impressive as it grew by 11 percent because inland fish catch has increased by 11.1 percent while the output of marine fishing grew by 11.5 percent. The total availability of edible oils in 2006-07 was 2,796 million tons. Local production stood at 0.857 million tons which accounts for 28 percent of total availability. The remaining 72 percent was made available through imports.
The government allocated Rs 200 billion for agriculture credit disbursements for 2007-08, which is 25 percent higher than the allocation of the preceding year ie Rs 160 billion.
Out of the total credit target of Rs 200 billion, Rs 96.5 billion were allocated to commercial banks, Rs 60 billion to ZTBL, Rs 8 billion to Punjab Provincial Cooperative Bank, and Rs 35.5 billion to domestic private commercial banks. Agriculture loans amounting to Rs 138.6 billion were disbursed during July-March 2007-08 as against Rs 111.2 billion during the corresponding period of the last year, thereby registering an increase of 24.6 percent.