Rabi Crops: Better water availability may improve harvests

KARACHI: Floods and extended heavy monsoon rains raised the underground water table and soil moisture level and increased water availability in reservoirs, said the State Bank of Pakistan (SBP).

In its economic report for the first quarter (July to September) of fiscal year 2011, the apex regulator has highlighted that this could lead to improved harvests in the current Rabi crop season.

Initial assessments of flood damage to crops showed that 2.4 million hectares of cultivated land was affected while rice, cotton, maize, pulses, vegetables and fruits were among the most affected crops. However, the external account improved by growth of 11.9, 48.2 and 34.3 per cent in exports of rice, meat and fish respectively.

The central bank also highlighted that increases in international prices of various commodities will encourage farmers to invest in higher yields and support domestic demand.

The SBP urged the government to provide targeted subsidies and support to the agriculture sector and poorer segments of the population. The target for gross domestic product growth of two to three per cent for the current fiscal year is also largely dependent on the upcoming wheat harvest, according to the central bank.

Published in The Express Tribune, February 3^rd, 2011.