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Contribution of key sectors in AGDP drops

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KATHMANDU, Nov 4: Despite satisfactory progress in commercialization of agriculture sector, contribution of some key sectors in Agriculture Gross Domestic Products (AGDP) has dropped significantly over the last seven years.



Officials at the Ministry of Agriculture and Co-operatives (MoAC) said major agriculture products such as poultry, animal products, forest, tobacco, sugarcane and millet have made less contribution in the AGDP over the period. [break]



Contribution of dairy sector, second largest contributor after paddy, dropped to 12.34 percent in 2009/10 from 15.84 percent of total AGDP recorded in 2003/04. Similarly, the contribution of buff, mutton and pork has also declined to 0.5 percent, 3.24 percent and 4.42 percent in 2009/10 from 4.51 percent, 3.99 percent and 0.75 percent respectively. Share of chicken and egg production has also gone down from 1.01 percent and 1.5 percent to 0.67 percent and 0.81 percent respectively.



However, total AGDP crossed $372 billion during fiscal year 2009/10 from Rs 183 billion recorded in 2003/04.



Contribution of millet, sugarcane and tobacco also fell to 1.37 percent, 1.24 per cent and 0.06 percent of the total AGDP from 2.23 percent, 1.37 percent and 0.19 percent respectively. However, share of paddy and wheat increased to 20.75 percent and 7.1 4 percent from 19.75 percent and 4.59 percent respectively.



Dr Hari Dahal, spokesperson of MoAC, informed Republica that contribution of some key sectors in AGDP dropped over the period despite satisfactory progress in the last few years as their growth rate is comparatively lower as compared to other sectors.



The government data has underestimated the contribution of agriculture in total Gross Domestic Products (GDP) by not incorporating the contribution of all agro-products while calculating AGDP.



“As per the government data AGDP amounted to Rs 263 billion during fiscal year 2007/08, whereas Food and Agricultural Organization (FAO) has put the AGDP at Rs 313 billion, despite the exclusion of the contribution of major products like pulse, jute, tobacco, eggs, honey, garlic and flowers,” Dahal added.



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