Agriculture is a vital contributor to the economy of country as it contributes one fourth to GDP, it pays 47% labor force, agro business give above 50% industrial production, earns 70% of export revenues either directly or indirectly and it provides livelihood to 67% of rural households.

Majority of poor live in rural areas (near to 80% of all poor live in rural areas) and they are mainly dependent on agriculture for their food and for livelihood security. Also livestock is source of livelihood for the poor. Through forward and backward linkages, agriculture also contributes to rural economy (farm and non-farm) and creates livelihood for poor in the non-farm sector.

Agricultural growth contributes most to poverty reduction. Increasing agriculture growth, especially high value agricultural activities, will continue to be the basis of Government overall strategies to decline poverty.

Key policy goals for agriculture

To make agriculture more economical and transpose, the Government is pursuing the following goals:

• Diversification in horticulture, fisheries and livestock.

• Minimizing the yield gap by enhancing productivity, especially of local farmers.

• Giving more importance to increasing stall holders.

• Increasing irrigation network and to ensure higher efficient irrigation system.

• Ensure reasonable price to farmers

Emerging key sources of future agricultural growth

Livestock is seems to emerging key sector of growth in future and there is huge potential of dairy and livestock. Government has embraced livestock growth strategy to discourse the key constraints such as:

• Insufficient feed resources (short by 30%)

• Unavailability of grander germ-plasm

• Low marketing infrastructure

• Less investment by the government (only 1% of PSDP in past)

• Bad institutional infrastructure