pakistan's agriculture sector -1( crops ) challenges and response

7/28/2019 Pakistan's Agriculture Sector -1( Crops ) Challenges and Response

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Introduction Historical Evolution

Where we stand - Time Series

Where we stand - Cross Country

Present scenario - SWOT Analysis

Challenges

Responses

Conclusion

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Despite its relative decline in formal economy in

percentage terms, agriculture is still dominantsector in overall economic structure

Pakistans survival and growth are directly

dependent on its agriculture due to its socio-political interconnectedness and its economicand financial linkages-backward and forward

Its performance still dictates all our macroindicators - GDP, Poverty, External Balance,Inflation etc

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The total area of Pakistan is approximately 80 millionhectares out of which about 58 million hectares have beensurveyed so far

The area under cultivation is 22 million hectares (38%) out ofwhich nearly 19 million hectares is irrigated; the rest is rain

fed

The area under forest is 4 million hectares (7%) and thebalance surveyed area 8 million hectares can be classified asthe cultivable waste

Coupled with suitable climate and availability of fairly goodwater resources, agriculture has been the major activity forcenturies in this part of the world

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Agriculture sector of Pakistan comprises foursectors - livestock, crop, forest and fisheries

Livestock contributes 56% of the total agricultureproduction while crop sector adds 38% to it out ofwhich the contribution of major crops is 25% andminor crops is 13%

Fisheries and forestry contributes 2% each

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During the 1950s, agriculture growth was sluggish dueto less area under cultivation and low productivity

Low technological base, adverse agricultural terms of

trade, patterns of landholding, inequitable tenurial

relations were some of the causes

Main driver of growth became increase in cultivated areawhich increased from 11.6 m ha in 1948 to 15.3 m ha by1960

Development of lands (particularly in the new barrage

areas) had huge impact on production

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During the1960 emphasis shifted towards vertical expansion- increase in yields through genetic breakthroughs in majorcrops (wheat, rice, cotton)

Land Reforms of 1959 devised a rational land tenure policy.

Implementation facilitated creation of new social relationshipconducive for agricultural growth

Rapid increase in tube wells contributed to more than a millionha cropped area in Punjab alone (100% increase in croppingintensity)

Agricultural sector grew at 3.8% pa with the production of allcrops grew around 4.8% per year

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Varieties evolved during the 1960s were adopted widely by

farmers in the 1970s

Use of inputs (seeds, fertilizers, pesticides), controlled water,and access to subsidized electricity and credit on a large scale

Price and non-price measures resulted in higher use ofmodern inputs

Three rural reconstruction programs thrust to create more

rural employment, facilitate flow of farm inputs and outputsand provide agri. services in small towns closer to farmersdoorsteps

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Two successive food crises forced the policy makers toformulate comprehensive food security policy andrealisation of rural transformation as a necessaryprecondition for economic growth

Induction of local bodies resulted in improvement of ruralinfrastructure

Foreign remittances resulted in rural private construction,rationalisation of the cost of land and realignment ofrural political dynamics

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Better crop management and extension services playeda major role in increasing the agricultural production

Input use efficiency and greater integration with theworld markets are the prime reasons for boostinggrowth in agriculture sector

Fertilizer use and adoption of HYVs and the use ofmechanical farm power exhibited rising trends

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Food crises of 2007 reemphasized the crucial importance ofagriculture as an engine of growth, price stabilizer and vehiclefor poverty alleviation

Terms of trade became favourable for the agricultural sectorafter many decades

Introduction of Biotechnology by the private sector started theGene Revolution in the country

Commercial farming started at large scale by enterprisingfarmers and business houses which boosted tunnel farming

and farm mechanization

Environmental consideration, looming threat of climate changeand water scarcity have forced the policy makers to go forinputs use efficiency and resource management

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Crop Decades Ago In Recent Years1950-53 1960-63 2003-06 2007-10Wheat 3.13 4.01 20.80 22.76

Rice 0.81 1.09 5.14 6.47Maize 0.37 0.47 2.60 3.48Sugarcane 6.09 14.52 48.44 54.45Seed Cotton 0.82 0.99 5.87 6.18Fruit N/A 2.54 6.49 7.06Vegetable 0.63 0.86 3.07 3.13Milk N/A N/A 37.27 38.05Meat N/A N/A 2.31 2.84Fish 0.055 0.089 0.59 0.69Output of most crops increased by 6 -10 fold

(million metric tons; 3 year moving average)


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Wheat - From 4 MT in 1950s to 6MT in 1960s to 23 MT in2010

Rice - From less than 1MT to 2 Mt in 1960s to more than 6.9MT in 2010

Maize - from 0.5MT in 1950s to 1MT in 1960s to 3.3 MT in2010

Cotton - From 0.8 MT in 1950s to 2 MT in 1960s to 12.9 MT2010

Sugarcane - From 6MT in 1950s to 14MT in 1960s to 49.3MT in 2010

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MT = Million Tonnes


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Commodity Pakistan India USA China WorldWheat 28 27 26 48 28

Cotton 20 15 29 43 22

Rice 32 33 82 64 42

Sugarcane 516 734 785 871 717

Maize 33 22 96 55 50

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Maunds (40 kg)/acre


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Weak factor productivity, stagnant yields

Preponderance of small farmers, low technology base

Post harvest losses, inadequate supply chainInfrastructure, inefficient and inadequate marketing

Depleting soil fertility Deteriorating Irrigation and drainage system

Ineffective Education, R&D and Extension linkages

Poor skill development for modern agriculture

Inappropriate use of natural resources

Rural Non-farm Sector performs below potential

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Existence of productivity gaps - great scope forproduction enhancing

60 years of accumulated knowledge

Worldwide interest in agriculture

Burgeoning population - need for food

Growing prosperity - demand for value added foodproducts

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Climate change and environmental threat

Use of arable land for non-agricultural use

Low priority for agricultural development-urbanbias

Sluggish economic growth-catch-22 position

Rural Governance issues

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How to improve the quality of life of the citizens of

Pakistan by ensuring their food security and

providing agricultural raw material to its industry at

competitive rates by making agriculture an efficient,productive and profitable sector of the economy in

a manner that its growth is sustainable and outputs

are competitive?

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Increase productivity by increasing efficiency in allagricultural operations through public as well asprivate sector investment in R&D and Extension

Increase profitability by rationalizing input andoutput prices, reducing production and postproduction losses and selective public procurementintervention

Making agricultural produce competitive in therapidly globalizing world by reducing cost ofproduction, improving quality and ensuringSanitary and phyto-sanitary (SPS) compliance

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Ensuring sustainability by promoting environmentfriendly good agricultural practices throughincentives and rewards

Equitable distribution of gains from enhancedproductivity by making available public sectorgoods and services to all stakeholders withoutdistinction

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A. Horizontal expansion - increasing the areaunder cultivation

B. Vertical expansion - increasing the productivity

C. Structural transformation - diversification andvalue addition

D.

Cross Cutting Interventions - agrarian reforms

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Bringing new areas under cultivation

Reclaiming degraded lands

Intercropping

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Bringing uncultivated area under cultivation by providingproper technical support, making available affordabletechnology and adequate water

Increasing availability of water by construction of newsmall and medium dams and popularizing rain harvestingtechniques

Saving water by reducing water losses through proper

water conveyance and efficient irrigation techniques

Economical management of ground water pumpingthrough incentives, legislation and awareness

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Launch a sustained campaign for the use ofgypsum in every acre and provide incentives

Forbid by law the burning stubs of wheat andrice and encourage the farmers to plough theminto the field

Encourage the sowing of humus making plantssoon after the harvesting of wheat and ploughthem back into the lands

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Encourage eco-friendly inter-cropping practicesas it increases the area under cultivation bycultivating vegetables in between the rows

Agro-forestry is another profitable option forthe farmers and the country

However farmers must be given proper technicalsupport for this practice to be cost effective andeco friendly

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Agricultural Education and Research

Farm Mechanization

Inputs Seeds Chemicals Water

Credit

Production Losses

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Introducing need based agriculture education, creatingeffective inter and intra institutional linkages andcollaboration with reputable foreign universities

Strengthening public sector Research and Development

system, improving inter and intra institutional coordinationamong educational/research institutions and extension

Encouraging private sector investment in the field of R&D with

focus on modern technology and facilitating their outreach

Capacity building of extension personnel of the provincialagricultural departments

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Intensification and diversification of farmmechanization by ensuring easy access of the farmersto essential farm machinery

Its efficient and optimal use by incentivizing theprivate sector for opening farm machineryleasing/hiring outlets in villages

Expansion and modernization of local farm machinerymanufacturing by providing them training, incentivesand technical/financial support to produce agriculturalimplements as per international standards

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Variety development and local production of good qualityseeds by the private sector by providing them appropriatelegal cover and technical/financial support

Providing legal framework for establishing partnershipsbetween bio-tech research institutes and private seedcompanies

Encouraging good practices among the farmers to increase the

efficacy of farmers saved seeds

Incentivize the farmers to use drill system of sowing to save onfertilizer and for better seed germination

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Timely availability of fertilizers, un-adulteratedpesticides & herbicides at reasonable prices tothe nearest possible doorsteps of the farmersthrough rationalisation of prices, in time importand provision of subsidy when needed

Popularizing the efficient and judicious use of

chemical inputs for reducing production losseswith minimum side effects

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Provinces to rationalize their respective water-related legislationsincluding local water usage rules and implementation of integratedwater resource management

Encourage public-private partnerships on water saving techniques incultivation of different water terrains, and other innovative designs of

groundwater recharge dams and rainwater harvesting Prioritizing planned investment in large storage infrastructure and

groundwater use in light of macroeconomic instability due to publicbudget deficit and conflicting demand uses

Saving water by reducing water losses through proper waterconveyance and efficient irrigation techniques

Economical management of ground water pumping throughincentives, legislation and awareness

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Streamlining the traditional sources of farmer creditby integrating them with the formal banking system

Making financial products tailor-made to the needsof smallholders and of micro, small and mediumnon-farm rural enterprises to become efficientlylinked to the agri-based supply chains

Increasing the volume and outreach of formalbanking network for timely and easy access to creditby farming community

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There are various estimates of production losses due to non-use of weedicides by the farmers

Ignorance, fear and costs of using are the general reasons for

this neglect

There is need to create awareness among the farmers for

judicious use of weedicides for reducing the production

losses

There are eco friendly measures to reduce this loss for those

who are excessively conscious of use of chemical inputs

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Reducing post production losses

Value addition

Marketing

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Reducing post-production losses throughdevelopment of cool chain infrastructure includingstorage in the private sector

Establishing grain storage and handling system atall levels including on-farm, off-farm and points ofentry/exit (sea/airports), and refurbishment ofexisting storage facilities

Enforcing grain quality standards and establishingreliable grain testing laboratories at delivery points

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Making agricultural produce competitive in rapidly

globalizing world by enforcing SPS standards andintroducing international certifications

Encouraging quality consciousness among the farmers

through awareness campaigns

Introducing and implementing grading standards andimproving marketing system of agricultural produce

Establishing modern agricultural produce wholesalemarkets in public-private partnership with coldstorages, pack houses, customs facilities etc.

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Sustained growth of the rural economy lies in the development

of efficient and effective agri-based supply chains that link theagriculture sector with their corresponding upstream anddownstream links in the rural nonfarm to the national andinternational markets

Establishing modern agricultural produce wholesale markets inpublic-private partnership with cold storages, pack houses,customs facilities etc.

Encouraging processing and value addition of agriculturalproduce to fetch better value, and to reduce post-harvest

losses

Introducing warehouse receipt system for easy realization ofsale proceeds to farmers

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Formulation of comprehensive Land Use Policy

Improving Agricultural Terms of Trade

Improving Rural Infrastructure

Improving Rural Governance

Environmental Sustainability

Creating Linkages and promoting Investment

Gender Mainstreaming

Production Relations

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Developing a national land use policy for rational use of land resources isthe need of the day as valuable arable land is being converted at alarmingrates by the property developers and industrial concerns for commercial nonfarm uses

Infrastructural development, though necessary is also rendering fertile land

to brick and mortar

Add to it the declining fertility of our agricultural lands due to nonsustainable agricultural practices

Plus the degradation of our lands due to water logging and salinity going on

for decades, a negative side effect of our irrigation practices

All these issues needed to be addressed by formulating a long termcomprehensive land use policy by the government

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Agricultural transformation demands restructuring, not merely fine-tuning,the political economy of the rural areas which are an integral subset of theoverall economic structure of Pakistan

One of the ways to do so is to improve the terms of trade betweenagriculture and the other sectors of the economy so that the squeezing of

the peasants going on for the last six decades can be reversed

Rationalize the prices of the inputs farmers use, provide subsidy on themand as well as those of commodities they produce

Improving the marketing infrastructure

Selective procurement when the prices of agricultural commodities crash

Introduction of crop insurance scheme

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Urban areas do need good public goods and services but so do therural areas where the roads, schools, hospitals and otherinfrastructure are in deplorable condition

No doubt the government has invested a lot in farm to markets

roads, construction of health facilities, schools and also ruralelectrification

However there are complaints of substandard workmanship and theirfast wear and tear due to paucity of maintenance funds

Similarly there are complaints of shortage of staff to man thesehealth and educational schools. 'Ghost Schools was a term notinvented in the air; it has a solid evidence

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Sustained growth of the rural economy lies in the development ofefficient and effective agri-based supply chains that link the

agriculture sector with their corresponding upstream and

downstream links in the rural non-farm (RNF) to the national and

international markets

RNF provides 40-60% of incomes/jobs in rural areas, much of its

activity occurs in the trading, services and processing sector having

strong forward and backward linkages with agriculture

Informal and low capital using entities catering mostly to domesticmarkets, RNF presents opportunities for providing value addition to

primary production at the farm level

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RNF is hampered by the numerous middle level low capital usingplayers who add little or no value to products and services

For creating linkages between non-farm rural enterprises with agri-based supply chains, we have to establish modern agricultural

produce wholesale markets in public-private partnership with coldstorages, pack houses, customs facilities etc.

At the same time government should Introduce warehouse receiptsystem for easy realization of sale proceeds to farmers and

encourage processing and value addition of agricultural produce tofetch better value, and to reduce post-harvest losses

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It is not an easy task to dismantle centuries old rural governancestructure and replace it with modern, formal contract based ruralpublic management in a short period but can be done in long term

Start with education, literacy and skill formation which will shake thefoundations of this feudalistic structure

Establish alternate dispute resolution mechanism to replace theinformal system heavily dependent on big landlords, supported bythe police and the patwari

Local bodies elections be held as per fixed schedule which will bringin the leadership interested in improving rural infrastructure, thebest guarantee of their fast journey to urban culture

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Creating awareness among the farmers about the looming threat

of climate change and environmental degradation

Popularizing the good agricultural practices by synchronisingthe extension services of the provincial agricultural departmentsand marketing outlets of the private agro services providers

Promulgation of legislation for stopping of practices aggravatingthe threat of climate change

Allocation of resources for carrying out research to adjust thecropping pattern and fine-tuning the planting and harvesting

schedules, practicing crop rotation and diversifying crop mix

developing more varieties responsive to climate change

adapting irrigation practices and fertilization regimes.

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Although it is not possible to replace the centuries old production relationsof land cultivation in the rural areas of Pakistan in the short term, efforts canbe made to introduce the three modern forms of farming

Contract farming-encouraging agri-based processors to supply inputs & technologypackages to farmers on deferred payment with buy-back of produce at guaranteedprices

Cooperative farming-piloting variations of successful coop-models (with refinementsto traditional coops)

Corporate farming-promoting lease of commercially viable tracts of land to corporatelevel entrepreneurs who are willing to practice high-tech export oriented agriculture

and share profits with the owners

However all the above three need comprehensive legislation about contractmaking/dispute resolution as well as their strict implementation through aspecially created institutional infrastructure

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Rural women are under three pressures-nature, society and family, all treatthem unfairly in terms of status, ownership of resources , job opportunitiesand empowerment

Improving healthcare and family planning facilities to relieve them ofexcessive child bearing burden should be the top priority

Launching of special rural female literacy and education campaign byoffering attractive monetary rewards would help in their empowerment andreduce domestic violence

Ensuring womens access to resources and assets, including ownership ofland by creating awareness about their rights and strict enforcement of legal

framework priority

Providing equitable opportunities to women by developing marketingoriented skills and remunerative employment in the rural areas

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We need to enhance the productivity of the agriculture at micro and macro levelby increasing efficiency in all agricultural operations through public as well asprivate sector investment in R&D, extension services, rural infrastructure,marketing, value addition etc.

Unfortunately, the flow of investment funds towards agriculture, which has

recently picked up, is still far below the desired levels.

we need to make agricultural produce competitive in the rapidly globalizingworld by reducing cost of production, improving its quality and meeting globalfood safety standards. raising the awareness of the opinion leaders anddecision makers to enforce strict food safety standards.

Motivating domestic and foreign investors to invest in seed production, fruitand vegetable processing, agri-infrastructure development and encouragingdevelopment of commercially viable non-farm rural agriculture enterprises

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Despite its declining importance, agriculture is a sector capable ofaccelerating growth, reducing poverty, containing inflation and improving

the quality of life of its citizens

Due to its backward and forward linkages, small investment can bringsubstantial gains

Area needing urgent attention are inputs use efficiency, reducing

production/post production losses, credit availability and bringing moreareas under cultivation through intercropping and tunnel farming

Areas needing attention in the short term are rural infrastructure,agricultural terms of trade, promoting investment, formulating land usepolicy ,farm mechanisation and improving rural non-farm sector

Areas needing attention in the long term are agricultural education, ruralgovernance ,gender mainstreaming, adapting to climate change threats andintroducing modern forms of production relations

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pakistan's agriculture sector -1( crops ) challenges and response

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