Maravi

(TALKZIMBABWE) Farming sector is highest GDP contributor

Farming sector is highest GDP contributor
By: Nancy Pasipanodya
Posted: Sunday, July 18, 2010 10:58 pm

THE country’s agricultural sector appears resurgent after registering an 18,8 percent growth, up from last year’s 14,9 percent and accounting for the biggest contribution to the gross domestic product (GDP).

This impressive figure is testament that the Farm Mechanisation Programme -- President Mugabe and Reserve Bank Governor Dr Gideon Gono's brainchild -- is beginning to bear fruit. The programme, bankrolled by the Reserve Bank of Zimbabwe, has benefited farmers in both the commercial and communal sectors.

This growth is largely attributed to the improved performance of tobacco farming which has sold 93 million kilograms of the crop since the beginning of the marketing season.

Presenting the Mid-Term Fiscal Policy Review Statement at Parliament Building last Wednesday, Finance Minister Mr Tendai Biti -- who is on record criticising Dr Gono farm mechanisation policy -- said the sector should be commended for its contribution to the GDP.

He said significant growth was registered in spite of the numerous challenges facing farmers.

“Agricultural growth of 18,8 percent in 2010 is up from last year’s 14,9 percent,” said Minister Biti.

“This is mainly driven by tobacco sales. Ninety-three million kilograms have since been sold as of last week compared to the 55,6 million kilograms sold during the same period last year.’’

Mr Biti said the tobacco industry’s improved performance would spur production next season.

He also noted the remarkable maize output, which increased from 1,24 million tonnes to 1,33 million tonnes.

Mr Biti also announced that the agriculture industry was now operating at 70 percent capacity, surpassing any other industry in the country.

Mechanisation has taken land reform to a higher level, empowering the hitherto resource-poor farmers with machinery to create a vibrant agricultural industry.

The Government, through the RBZ, which took into cognisance the high cost of acquiring machinery on individual farmer basis, took it upon itself to revolutionalise farming by providing the machinery to farmers.

With mechanisation, farmers can increase productivity through intensification, increase farm household welfare and create employment opportunities.

While land reform had scored immense success in empowering thousands of Zimbabweans with the resource, the missing link in the production matrix has been mechanisation.

A crop inputs programme run by the Grain Marketing Board in which farmers accessed seed, chemicals and fertilizer cheaply was in place but machinery was absent to enable farmers to put their land to full production.

Labels: AGRICULTURE, GDP, MECHANISATION

posted by MrK @ 5:00 PM