Floods and extended heavy monsoon rains improving the underground water table, soil moisture level and increasing water availability in reservoirs have brightened the prospects for FY11 Rabi cropping season. The State Bank of Pakistan, in its first quarterly report, has said that performance of the commodity producing sectors of the economy is expected to improve in months ahead.
However, expectations of a recovery in agriculture sector depends crucially on the wheat harvest and the livestock sector. Referring to the performance of the agri sector, the report said that Kharif crops were planted on 9.7 million hectares, but heavy rains and floods damaged standing crops on approximately 2.4 million hectares.
Initial assessment indicates huge losses to rice; cotton, maize, pulses, vegetables and fruits. However, losses to sugarcane crop in flood areas were partially offset by an increase in yield in non-flood regions. In addition, the extended rains also caused higher viral/disease attacks on cotton and rice crops. The State Bank of Pakistan, federal and provincial governments initiated financial support programmes for a quicker recovery of agriculture sector and several steps were announced to revive the agri sector activity.
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