The New Nation - Internet Edition

BASED on a recent study, the World Bank observed that increased support to high-value agriculture and agro-business is likely to help attain a comprehensive development of the economy. The study said the growing demand for high-value agricultural commodities can provide significant opportunities for greater rural employment and income. As a result of sustained economic growth, rising incomes and rapid urbanisation shifts in food habit have taken place leading to higher demand for fruits, vegetables, spices, fish and livestock. The study estimated that by 2020 the additional demand for these items would be about US$ 8 billion calculated on the basis of 2005 price index. This increased demand, according to experts, has created the national and international markets for the high-value agricultural goods and agro-business to grow.

This has also led to changes in traditional way of agriculture. Commercial cultivation and production for the market alongside subsistence farming has developed significantly in recent years. Cultivation of a number of items like flower, summer onion and tomato is a reflection of commercial agriculture.

Adequate marketing facilities for agricultural products are of prime importance for the growth of high value agriculture. Coordinated development of agriculture and food processing industries is vital for its overall growth. Huge quantities of pineapple, jackfruit, tomatoes and mangoes cannot be preserved for lack of such industries. Increased support to agriculture like subsidies and bank loans on easy terms is necessary for contitined growth of the agricultural economy. Greater numbers of agro-industries will create more demand for agricultural products. Higher demand again is expected to increase production leading to food security, more employment and increased income. A comprehensive plan is needed to ensure planned development of agriculture on which a majority of the population still depends.