The agriculture sector has shown a commendable performance in the first half of 2024, contributing significantly to the country’s economic diversification. The sector recorded an overall growth of 8.7%, driven primarily by increases in various sub-sectors such as rice, other crops, and fishing, despite challenges in areas like sugar and livestock .
The rice-growing sub-sector emerged as the strongest performer within the agricultural industry. This sub-sector grew by 17.9% in the first half of 2024. Favourable weather conditions and increased mechanization contributed to this growth, with the yield for the first crop reaching 6.6 tonnes per hectare compared to 6.2 tonnes per hectare in the previous year. This positive performance led to an upward revision of the production estimate for the year to 717,032 tonnes of rice .
The other crops sub-sector also demonstrated robust growth, expanding by 8.8% in the first half of the year. This sub-sector’s performance was fueled by increased production of vegetables, root crops, and high-value crops such as spices and corn.
Notably, corn production saw a remarkable increase of nearly 400% compared to the previous year, driven by favorable weather and expanded shade house cultivation. The growth projection for this sub-sector is now set at 12.7% for the entire year .
The fishing industry also contributed positively to the overall growth of the agricultural sector. It recorded a growth rate of 27.7%, supported by increased marine fishing activities and a growing focus on aquaculture .
The forestry sub-sector experienced a moderate growth of 13.2% in the first half of 2024. This increase was attributed to sustainable harvesting practices and the promotion of forest restoration projects .
Underperforming Sub-Sectors
Conversely, the sugar industry faced significant challenges, resulting in a contraction of 60.4% in the first half of the year. This decline was largely due to adverse weather conditions carried over from the previous year, which impacted production negatively. However, ongoing efforts to modernize and mechanize the industry, including the introduction of additional cane harvesters and improvements in the drainage systems, are expected to stabilize the sector. The government aims to produce 70,000 tonnes of sugar by the end of the year, despite these setbacks .
The livestock sub-sector also encountered difficulties, contracting by 7.8%. The decline was driven primarily by reduced output of poultry meat and milk due to high temperatures affecting livestock health. Despite this, some positive developments were noted, such as increased production of beef, pork, mutton, and eggs. The government remains optimistic that improved husbandry practices in the second half of the year will help the livestock industry recover, with a projected growth rate of 6.2% for 2024 .
