Page 29 - AWA Vol.41-No.4

oMAN AGrICUltUrE UPDAtE

oman Agriculture Market Analysis

he Agriculture Market In Oman growth in the coming years.
TMarket size is estimated at USD 2.38 Rising Government Backing to Curb
billion in 2025, and is expected to reach Import Reliance
USD 3.21 billion by 2030, at a CAGR of
6.16% during the forecast period (2025- Oman has historically relied on imports
2030). to fulfil its domestic needs. Recently,
imports have predominantly satisfied
• Agriculture has been integral to Oman's demand for fruits, vegetables,
Oman's economy for centuries. In 2022, and cereals. In a bid to curtail this de-
the agricultural and fisheries sectors pendency and strengthen its economic
contributed 1.8% to Oman's GDP, ac- foundation, the Omani government has
cording to World Bank data. The fertile
coastal plains in Batina and Salala, along rolled out a series of targeted policies.
with the cooler high plateau climate of Al These initiatives aim to bolster domes-
Jabal al Akhdar, support the cultivation tic production across multiple sectors.
of various fruits such as apricots, grapes, A notable example is in 2023, when the
peaches, and walnuts. Additionally, the Ministry of Agriculture, Fisheries and
adoption of advanced farming technolo- Water Resources (MAFWR) launched
gies and favorable government policies 15 new projects, investing RO83 mil-
are driving the market growth. lion (USD 215.6 million) to enhance the
nation's food security. This endeavour
• The government has established re- aligns with Oman's broader strategy of
search and development centres across
the country to promote agricultural economic diversification, emphasizing
mechanization and introduce new farm- self-sufficiency and a diminished reli-
ance on imports.
ing methods and crops, aiding the sec-
tor's growth. In 2023, the Ministry of Ag- In tandem with these efforts, the Omani
riculture, Fisheries, and Water Resources government is also championing domes-
launched the 'Oman Seed Bank to safe- Such ambitious self-sufficiency targets tic production through a suite of incen-
guard and enhance local crop diver- have not only propelled cereal and grain tives and subsidies. These measures are
sity. This strategic repository conserves production but have also invigorated designed to empower local industries
seeds, breeds new varieties suited to Oman's agricultural sector. and businesses, enabling them to ramp
Oman's environment, and distributes Wheat, barley, maize, and sorghum up production and curtail import needs.
them to farmers, significantly boosting stand out as the primary cereals culti- For instance, in 2022, MAFWR took a sig-
agricultural yields. These initiatives are vated in Oman. Technological advance- nificant step by distributing free seed-
expected to drive agricultural growth in ments in agriculture have been instru- lings to Omani farmers. This initiative
Oman during the forecast period. mental in this expansion. The integration aimed to motivate farmers to set up com-
• Oman relies on imports to meet its of modern farming tools, advanced irri- mercial model farms, with a focus on di-
domestic demand for fruits, vegetables, gation methods, and refined crop man- verse fruit cultivation. MAFWR provided
and cereals. To reduce this dependency, agement strategies has empowered mango and Omani lemon seedlings at
the country aims for self-sufficiency in Omani farmers to enhance their cereal no cost, while other fruit seedlings were
agricultural products. Sustainable de- cultivation efficiency. Techniques like offered at a minimal price. Such initia-
velopment in the agriculture sector is drip irrigation and other water-con- tives underscore the government's com-
expected to increase its contribution to serving methods have optimized water mitment to boosting local agricultural
GDP, enhance employment, and improve resource usage, leading to expanded ar- production and curtailing imports.
the trade balance. Therefore, the adop- able land and heightened cereal yields. Data indicates a shift in Oman's import
tion of technological advancements in FAO statistics highlight this trend show- patterns. While imports of agricultural
agriculture, coupled with rising govern- ing that the area dedicated to sorghum products, including fruits, were on the
ment support, is driving market growth surged from 107,389 hectares in 2021 to rise until 2021, they witnessed a down-
during the forecast period. 178,582 hectares in 2022, directly boost- turn in 2022, thanks to the government's
ing the crop's yield and market growth.
Oman Agriculture Market Trends Furthermore, as Oman's population self-sufficiency policies. According
Growing Area under Cereal production grows, so does the domestic and inter- to the ITC trade map, banana imports
In recent years, Oman has seen a no- national demand for cereals. This rising surged from 50,939 metric tons in 2019
table expansion in its cereal produc- demand has motivated farmers to ramp to 55,157 metric tons in 2021. However,
tion area, driven by several pivotal fac- up production and broaden their culti- this figure plummeted to 25,554 metric
tors reshaping the nation's agricultural vation areas, resulting in a robust boost tons in 2022. This decline underscores
landscape. Central to this growth is the for Oman's cereal production sector. the success of Oman's self-sufficiency
Omani government's commitment to Oman's intensified focus on cereal pro- drive and the uptick in local production.
bolstering food security and achieving duction not only aims to fortify its agri- Thus, through a comprehensive strat-
self-sufficiency. For example, the align- cultural domain but also seeks to bolster egy that champions domestic produc-
ment of the tenth Five-Year Plan (2021- the nation's economic trajectory. Given tion, nurtures innovation, and invests in
2025) with Oman Vision 2040 aims to these dynamics, including government food security, the Omani government is
elevate food production across diverse backing, modern farming adoptions, steadfast in its mission to reduce import
sources, achieving a remarkable 151% and surging local demand, Oman's ce- dependency and bolster its agricultural
self-sufficiency rate in grains by 2024. real production is poised for continued sector. Circle 35 on enquiry card
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