Challenges and Opportunities in Pakistan's Agriculture Sector
Pakistan's agriculture sector faces challenges such as low productivity, poor quality inputs, industry influence, and high poverty rates. The country also grapples with issues like stagnant crop yields, inadequate infrastructure, and water scarcity. To modernize the sector, initiatives like developing new varieties, improving market access, and enhancing infrastructure are crucial. Addressing these challenges and implementing effective policies can lead to sustainable growth and improved food security in Pakistan.
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Agriculture Sector Lecture: 3 By: Zafarullah Siddiqui Agriculture Sector: Topic 3 1 10/3/2024
Objectives O Global Agriculture Challenge. O Importance of Agriculture Sector in Pakistan. O The issues and challenges the sector faces. O Way forward for modernization of Agriculture sector. O Desired policy interventions and management options. O Research focus of Agriculture Program and research activities including in Pakistan . O What type of policy intervention is needed to improve agriculture sector productivity and food security? O Donor funded Projects in Pakistan. O Lessons and recommendations. Agriculture Sector: Topic 3 2 10/3/2024
Global Agriculture Challenge O Developing more sustainable food systems O Using less land, water, nutrients & energy per unit output increasing productivity O Conserving biodiversity and improving livelihoods O Decoupling economic growth from carbon emissions O Adapting to an increasingly difficult climate O Shifting from fossil fuels to renewable energy O Doing all of this simultaneously. Agriculture Sector: Topic 3 3 10/3/2024
The issues and challenges O Agriculture sector growth-rate in Pakistan is slow in the region O Low per acre yield O Poor quality of seeds, water consuming crops O Industry influence called mafia i.e sugar industry negatively impact in cotton crop in the southern Punjab etc O There is not great welfare improvement and poverty remains high in the agriculture sector/rural economy (close to 30%). O Food security is becoming a major issue. O Some 30% of the population is undernourished. O The livelihood of about 50% of the population still depends on agriculture. Agriculture Sector: Topic 3 4 10/3/2024
The issues and challenges Stagnating crop yields with wide gaps between progressive and average farmers Poor quality and inadequate supply of inputs and lack of infrastructure Under-performance of rural factor and input markets High pre and post-harvest losses Declining investment including in research, development and extension. Frequent insect and pest attacks and high incidence of crop and livestock diseases Lack of capital and financial resources Lack of international competitiveness of some agricultural commodities Low crop diversification Highly skewed distribution of farm size and low economy of size and scale Inadequate supply of water and the inefficient use of available water resources . O O O O O O O O O O O Agriculture Sector: Topic 3 5 10/3/2024
Way forward for modernization of Agriculture sector. O Development and adoption of new varieties O Better access to markets for inputs (seeds, fertilisers, farm mechanization, credit, water) and outputs O Improved infrastructure including storage and cooling facilities O Reduction in post harvest losses O Greater investment in research, development and extension O Improved quality and fulfilment of quarantine requirements for international markets and competitiveness O Greater diversification, especially minor but high value crops O Effort for greater selling/buying power and economy of size and scale cluster farming/structural adjustment O Enhanced water supply but more efficient water use through better water management O Governance and institutional reforms in water sector Agriculture Sector: Topic 3 6 10/3/2024
Desired policy interventions and management options. O Good agricultural policies are fundamental to progress in the economic, social and environmental spheres. O Scientific and empirical evidence in policy formulation is extremely important O It is generally a low cost process with high and immediate beneficial impacts Costs imposed by poor decisions are reduced through decisions which rely on rigorous and objective evidence. Agriculture Sector: Topic 3 7 10/3/2024
Research focus of Agriculture and research activities in Pakistan . O Commonly used agricultural policy alternatives O Impact of the increasing regional/globalisation of trade and associated rules based approaches O Impact of domestic markets on supply, demand and price O Impact of domestic market and trade-regulatory developments O Impact of agricultural reform, land and water use policy, forest policy and food security policy, regulation and environmental-management regimes and institutions Agriculture Sector: Topic 3 8 10/3/2024
Policy intervention needed to improve agriculture productivity and food security O Supply related policies O Rural infrastructure O Agricultural research and development, and extension O Institutions for agricultural resource management O Farm input and produce pricing O Demand related policies O Income, growth and development O Education and knowledge O Food price stabilization O Market related policies O Effectiveness of markets O Policies to insulate local markets from global markets O Access to local markets Agriculture Sector: Topic 3 9 10/3/2024
Some Donor funded Agriculture Projects O Policies and institutional reforms to improve horticultural markets in Pakistan O Economic analysis of policies affecting pulses (production) in Pakistan O Enhancing smallholders performance through interventions and collaborative research: A case study of horticulture in Pakistan O Enabling agricultural policies benefitting smallholders in dairy, citrus and mango industries of Pakistan O Efficient participatory irrigation institutions to support productive and sustainable agriculture in south Asia O Creating wealth in smallholders farms through efficient credit systems in Pakistan Agriculture Sector: Topic 3 10 10/3/2024
Recommendations O Political environment must realize the importance of agriculture sector and food security issues. O Receptiveness of the policy work must be focused for the right time O Donor / government Projects must be realistic with greater depth of analysis and sufficient commitment O Projects should not be allowed to crowd-out economic policy analysis O Learning curve and knowledge based project credibility in the partner country O Sound analysis and credible with clear benefits O Policy analysis is relevant to the circumstances of the country O Policy analysis need to be effectively promoted throughout the appropriate channels O The project must consider stake holderscapability and comparative advantage.\ Agriculture Sector: Topic 3 11 10/3/2024
Agriculture Sector as an Industry Agriculture and industry are interlinked. Agriculture and its subsectors e.g dairy, poultry, livestock, fishery, orchards have become a full fledge industry. It draws some raw materials, like chemical fertilizers, pesticides, electric power,agricultural machinery and implements, etc., from the industry.Agriculture is also dependent on industry for the supply of materials for building up social and economic overheads in the agricultural sector.
Value addition opportunities in Agriculture Value-added agriculture may also refer to increasing the economic value of a commodity through particular production process, eg., organic produce, or through regionally branded, graded and packaged products that increase consumer appeal and willingness to pay a premium over similar but differentiated products. The key benefits to a business of adding value include: Charging a higher price. Creating a point of difference from the competition. Protecting from competitors trying to steal customers by charging lower prices. Focusing a business more closely on its target market segment.
Modernization in Agriculture Sector Modernization of agriculture is a process of transforming agriculture from traditional labour- based agriculture to technology-based agriculture . It is one of the fundamental issues in agricultural policies, particularly in countries, where agriculture is less developed. Agricultural modernization is the important foundation of national modernization, the power source of sustained and healthy development of the country and the long period of stability, which is the fundamental way to change the backwardness in rural areas and improve the farmers' poor life.
