Importance Of Agriculture: Ways It Contributes To National Revenue

Importance Of Agriculture

From ancient times, agriculture has been the core part of any civilization. Without the production of essential food crops, no civilization could have moved forward in their quest for life and glory. The importance of agriculture has been there from the beginning of any civilization of the world. Now, besides farming, dairy, forestry, poultry, fruit cultivation, mushroom, beekeeping, etc. have also become part of agriculture. Therefore, from processing to marketing to crop and livestock distribution too has been agriculture’s part.

So, in many ways, agriculture has been the backbone of every national economy. Along with providing raw food materials, agriculture provides employment opportunities on a larger scale. Here let’s see the importance of agriculture in national revenue generation:

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Importance Of Agriculture: Ways It Contributes To National Revenue

Importance Of Agriculture: Supply Of Food And Fodder

We, humans, need food, while the domestic animals need fodder to survive. If the chain breaks, we won’t be able to get dairy milk from cows and buffaloes. And we also eat livestock. So, if they don’t leave a healthy life, we will have to cut the animal protein part of our diet.

International Trade Significance

There are many agricultural products in a country that they export to countries with more needs. In the countries where the production of sugar, spices, tea, rice, etc. is huge, their major revenue source is food exportation. Most successful food-exporting countries have developed smooth agricultural development. So, they import less while they export on a larger scale. It helps in a country’s unfavourable payment balance and saving foreign exchange. In return, these countries can import other useful items like raw materials, machinery, and other infrastructure. So, a balance strikes for economic growth.

Importance of Agriculture: Marketable Surplus

As the agriculture sector experienced growth, it contributes to marketable surplus. When a nation is developing, many people engage with the mining, manufacturing, and other non-agricultural sectors. And these people rely on the production of food. So, they meet up with the nation’s marketable surplus. With agricultural development, the production increases leading to the outspread of marketable surplus. Therefore, nations can export surplus products to other nations.

Raw Material Source

For most industries, raw materials like jute fabric, cotton, tobacco, sugar, and both edible and non-edible oils are important. And without agriculture, there is no other way to retrieve these raw materials. Also, companies where they process fruits and vegetables get their raw material from one source, agriculture.

Contribution of agriculture on national revenue
Importance Of Agriculture: Ways It Contributes To National Revenue

Importance Of Agriculture In Transport System

Most of the agricultural products reach to suburbs and cities through roadways and railways from farms. And as they reach the cities, factories receive the raw materials for their production process. So, without the need for agricultural products, there wouldn’t be any transport system. And after all, a larger part of government revenue comes from the success in the agricultural sector.

Export To Foreign Countries

A nation’s export trade mostly depends on the agricultural sector. Therefore, if a country can produce the most valuable agricultural products that other countries import from them, the earning will be huge. Do you know that commodities like spices, tea, oilseeds, tobacco, jute, raw cotton, coffee, etc., almost generates 18% of export value? So, in the foreign exchange sector, the importance of agriculture is undeniable.

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