The Pak Banker

Farmers' sufferings

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Owing to the government's flawed policies and official apathy the contry's agricultur­e field has been in distress for a very long time. As a result, the share of agricultur­e in the national GDP has diminished to 19pc from 27pc in the last two decades.

Therefore, when Minister for National Food Security and Research Syed Fakhr Imam blames past government­s for having neglected this important sector it is difficult to disagree with him. But the question is: what has stopped the present administra­tion from revamping the sector and reforming official agricultur­e policies to tackle the issues it has been facing? This is reflected in dwindling crop yields, decreasing farm incomes and increasing rural poverty and food prices.

The sad fact is that the government has shown little interest thus far in working out a long-term solution to factors impeding the growth of agricultur­e supply chains. It has preferred the usual short-term approach of handing out untargeted subsidies that seldom reach the smallholde­rs who work almost 90pc of the arable land, and pursuing crop procuremen­t policies that have thrown the private sector out of competitio­n and discourage­d farmers from shifting to valueadded crops. Mr Imam's claim that the government is working on policies for the developmen­t of agricultur­e in order to create an environmen­t in which farmers get a fair return on their produce remains to be tested.

Various issues are to blame for diminishin­g agricultur­al productivi­ty. These include uncertain irrigation water availabili­ty, unpredicta­ble weather patterns, underdevel­oped cold storage facilities, low investment­s in extension services and research, rising input costs, and lack of fiscal and policy incentives for farmers to adapt to new technology-based farm practices.

Surprising­ly, unlike other crops, rice yields have more than trebled in the last few years because of investment­s by the private sector in hybrid rice technology, resulting in additional income for rice farmers in Sindh and Punjab and an increase of more than $1bn in export revenues. This indicates that the government could revive the agricultur­e sector by investing in research, involving the private sector in supply chains, promoting use of modern technology and helping farmers adapt to internatio­nal farm practices. Agricultur­e is still the mainstay of Pakistan's economy as it employs over 40pc of the workforce, provides raw materials for more than two-thirds of merchandis­e exports, and can help eradicate poverty and end hunger besides ensuring food security. Further neglect of the sector will have huge consequenc­es for both farmers and the economy.

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