Economics and Education

Agriculture versus industrial

development debate by
Ahsan Khan
on July 14, 2018

AGRICULTURE VERSUS INDUSTRY

Industry is not the substitute of

agriculture; similarly agriculture is also not the
substitute of industry. They are
complementary to one another. Both these
sectors are so attached with each other that it
is not possible to increase the growth of one
sector without the improvement of the other
sector. If agriculture is considered as the
‘heart’ of the country, then obviously industry
must be consider as the ‘brain’.

The interdependence of these sectors is

listed below:

A. Impact of Agriculture on Industry.

Agriculture has huge positive impacts
on the industrial development, such as:
i. It regularly supplies raw materials like
sugarcane, jute, tobacco, cotton, oilseeds,
tea, spices, wheat, paddy etc. to the
consumer goods industries.
ii. It supplies fruits, vegetables and other food
items to the industrial labourer and fodders for
the domestic animals in the dairy industries
on a regular basis. Agriculture is very
important to grow the livestock industry.
iii. Farmer-households used to save their
money in the bank and other financial
institutions which ultimately is used by the
industry owners in the form of investment.
iv. Both for consumer and capital goods
Industries agriculture sector gives a ready
market for the finished products.
v. It regularly supplies manpower to the
seasonal industries like, ice factories, rice
factories and sugar mills etc.
vi. The most of the agricultural income is used
to purchase industrial goods like mobiles, lap
tops, bikes, cars and other home appliances.
vii. Agriculture sector increases the demand
for fertilizer, pesticides, tractors, harvesters
and tube well. So, it helps to develop the
chemical, mechanical and hydro-
logical industries.

B. Impact of Industry on Agriculture.

The impact of industry on agriculture is
as follows:
i. It regularly supplies scientific tools and
equipment’s like tractors, harvesters, pump-
sets chemical fertilizers etc. to agriculture
increase the per hectare production.
ii. To increase the market for finished
agricultural goods some infrastructural
development like roads, railway, storage,
communication etc. are very essential. In this,
connection industry plays a vital role.
iii. Industries provide huge employment
opportunities and therefore help to absorb all
the surplus labour in our agriculture. This
leads to more industrial development.
iv. Industrial sector demands raw material
from agriculture sector. Industrial sector
increase the value of agricultural raw material.
v. Industrial sector is providing modern
facilities to agriculture sector and converting
the agriculture into agri-industry.

Thus in nutshell, we can say that both

agricultural and industry are complementary
to each other. Both operate hand to hand.
The development of one sector depends on
the growth and performance of the other
sector. Both are important for the
development of each other and economy.

WHICH IS MORE IMPORTANT?

The main point of dissimilarity between

agriculture and manufacturing industries is that

though both are cooperative to large-scale

production, the scope of such operations is very

much smaller in agriculture than in manufacture.

Further can be discussed in following points:

1. The Law of Diminishing Returns operates

much earlier in the case of agriculture. However,
in the case of manufacturing industries
application of successive doses of labor and
capital, with increasing returns, may be pushed
to and far greater extent.

2. As agricultural activities cannot be easily

subjected to a fixed routine, supervision is very
complex. Hence, large-scale production cannot
be carried to the same extent in agriculture as in
industries. In agriculture, so much of the task
depends on individual skill and efficiency.

3. In comparison to industries, the scope of using

machineries is also much smaller in agriculture.

4. There is an element of uncertainty in

agriculture, as agricultural production depends
so much on timely and adequate rainfall and
other climatic factors over which man has no
control.

5. Agriculturists are as a rule conservative, and

hence the standard of intelligence and education
among them is low.

6. Because industrial operations can be

concentrated in a small place, supervision is
easier and there is much scope for managerial
skill and industrial leadership.

7. Industrial operations are dynamic in character.

The industrial programs are also more energetic.

8. Development of industries within a country

provides a more balanced national economy by
absorbing the surplus population when it is not
required for agricultural operations.

Which is more important?

Agriculture is the backbone of the economy of

Pakistan. Agriculture, no doubt, has always been
the most important factor for the economy of
Pakistan. However, at the same time, the
importance of industries and manufacturing units
in shaping the future economy of Pakistan
cannot be denied. Agriculture is a crucial part of
country’s economy. More than that, it feeds the
population of the country. So, there is nothing to
exaggerate that country cannot survive without
agriculture. But, neglecting the industrial sector is
not a solution for country’s development. For an
all-round development, agriculture and industries
both should flourish.

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