Agriculture Sector Challenges and Way Forward+

Agriculture sector: challenges and way forward
https://tribune.com.pk/story/2291953/agriculture-sector-challenges-and-way-forward
Farmers cannot switch to new technologies as they require heavy

investment
Muhammad Nadeem Sarwar March 29, 2021
PHOTO: AGENCIES
KARACHI:
Agriculture is one of the key sectors of Pakistan’s economy. It comprises

crops, livestock, forestry and fishing with crops being the major
component.
This sector not only produces 19.3% of total output of the country but also
provides employment to around 38.7% of the population, higher than all
other sectors. This sector supports other related industries such as textile,
sugar, tractor manufacturing, fertiliser, etc through strong forward and
backward linkages.
A high yield in the agriculture sector also fosters commerce and trade since
most of the farmers fall in the low or lower middle-income group whose
marginal propensity to consume is high. Therefore, the contribution of this
sector goes beyond what is reflected by statistics. Unfortunately, the sector,
like many others, is performing well below its potential. Among major
crops, the production of cotton is declining continuously over the last few
years.
Last year, Pakistan produced around 9.18 million bales of cotton whereas in
2014-15, its production was 13.96 million bales.
Last year, the output of wheat and sugarcane was also insufficient to meet
the country’s needs. Owing to this, the government had to import both
sugar and wheat, which placed an additional burden on the national
exchequer.
If we look at productivity, Pakistan’s per acre yield of major crops is less

than that of other countries in the region. Unfortunately, this gap is
widening further. There is an urgent need to study the factors and put in all
efforts to revive the sector.
There is a long list of problems that need to be addressed. However, this

piece will cover only some of those and the rest will be discussed sometime
later.
Research centres
First, there is a need to restructure the agricultural research institutes. In

line with the best global practices, the pay and incentive structure must be
revised and linked with the output on the ground.
If we link the research institutes with industries and develop a revenue-

sharing mechanism, such that part of revenue from a newly developed or
improved product goes to the institution and the researcher also gets a
fixed percentage, then this will not only incentivise the development of
quality seeds, better pesticides and good farm techniques, but will also help
increase the budget of such institutes.
Departments of agriculture at provincial levels are not playing their role

actively. In fact, their performance has deteriorated over time. In the past,
the Punjab agriculture department used to lease small pieces of land in
various villages to cultivate crops with the help of local farmers by applying
new techniques and latest research.
Field officers and other staff of the department used to visit and examine
the land with the farmers and briefed them about their experiences. Such
arrangements acted as field schools for the farmers, who could learn and
update their farming skills by listening to the experts and observing the
outcome of newly applied techniques.
However, now for more than a decade, not such activity has been noted
anywhere. Instead, the agriculture department arranges seminars in
expensive hotels in cities, thus limiting the access of small farmers to such
sessions.
Apart from that, these seminars are arranged with the support of pesticide,
fertiliser or seed companies. This gives birth to serious conflict of interest
and the recommendations given through such platforms are not trusted.
The absence of guidelines from independent sources has left farmers at the
mercy of sales agents of the pesticide, fertiliser and seed firms. Students of
economics know that firms aim to maximise profit by selling maximum
quantity and at the highest possible price, but this leads to an increase in
the cost of agriculture production.
Therefore, there is a need to think of the role of agriculture departments in

the provinces.
Water scarcity
Water shortage is another issue that is affecting agricultural output.

Pakistan has not built any major dam for decades, therefore, the scarcity of
water is affecting every sector and its consequences can be more severe in
future.
Experts call for adopting modern irrigation systems such as drip irrigation
and sprinkle irrigation, as embraced by various countries. The government,
with the help of global financial institutions, is working to facilitate the
adoption of such technologies, but all suggestions and actions ignore the
fact that in Pakistan a majority of the farmers hold small-sized farms (of
less than 12.5 acres).
These farmers cannot afford to switch to these technologies as they require

heavy investment, even after subsidies are provided. Unfortunately, these
farmers also have limited access to financial support from banks for
various reasons.
Therefore, there is a need to provide solutions that can remove the

constraints. Unfortunately, not a single solution has been proposed by any
publicly funded research institute or department.
Fortunately, Pedavar, an NGO led by a renowned agricultural expert and

run by farmers themselves, has come up with a cheap solution. They favour
the cultivation of crops on raised beds and keeping the beds covered with
residual of the previous crop. This slows down the evaporation process and
keeps the beds wet for a long period, thus the farmers do not need to water
the fields for a longer period.
As per Pedavar, it not only results in 70% reduction in water consumption,

but the residual also keeps the fertility of soil high, thus fertiliser is not
needed, which further slashes the cost.
Food crops cultivated as per the proposed system can be sold as organic
food in the global market. This way, exports and foreign exchange earnings
can be multiplied.
Agriculture departments and research centres can test the system. If it

works, then they must educate the farmers at grassroots level. Setting up
field schools for the purpose, as Punjab did in the past, will accelerate its
adoption.
It needs to be pointed out that most of the graduates in the field of

agriculture end up joining the sales teams of pesticide, fertiliser and seed
companies. This is apparently the field of marketing graduates and a
graduate in agriculture should ideally take farming as the profession as the
knowledge he/she has gained will be utilised better.
The government can introduce an incentive programme which encourages

the agricultural graduates to join farming as the profession. Incentives can
include leasing public land to the graduates at concessionary rates, priority
access to loans, etc.
The writer is a PhD scholar in Economics at IBA Karachi
Published in The Express Tribune, March 29th, 2021.
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Agriculture sector: challenges and way forward

Farmers cannot switch to new technologies as they require heavy

Muhammad Nadeem Sarwar March 29, 2021

Agriculture is one of the key sectors of Pakistan’s economy. It comprises

If we look at productivity, Pakistan’s per acre yield of major crops is less

There is a long list of problems that need to be addressed. However, this

First, there is a need to restructure the agricultural research institutes. In

If we link the research institutes with industries and develop a revenue-

Departments of agriculture at provincial levels are not playing their role

Therefore, there is a need to think of the role of agriculture departments in

Water shortage is another issue that is affecting agricultural output.

These farmers cannot afford to switch to these technologies as they require

Therefore, there is a need to provide solutions that can remove the

Fortunately, Pedavar, an NGO led by a renowned agricultural expert and

As per Pedavar, it not only results in 70% reduction in water consumption,

Agriculture departments and research centres can test the system. If it

It needs to be pointed out that most of the graduates in the ﬁeld of

The government can introduce an incentive programme which encourages

The writer is a PhD scholar in Economics at IBA Karachi

Published in The Express Tribune, March 29th, 2021.

Like Business on Facebook, follow @TribuneBiz on Twitter to stay informed

Updated 22 hours ago

Updated Oct 01, 2021

Updated Oct 01, 2021

Updated Oct 02, 2021

Updated Oct 01, 2021

Updated Oct 01, 2021

Updated Oct 01, 2021

Updated 22 hours ago

Updated Oct 01, 2021

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This material may not be published, broadcast, rewritten, redistributed or

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