Agriculture Sector of Pakistan.

What is Agriculture? Agriculture is the practice of cultivating

and farming animals, food and other life forms that are used to sustain life.

Do you Know! Agri Seri Pisci + Culture Viti Horti

AgricultureThe science and art of cultivation on the soil, raising crops and rearing livestock . It is also called farming.SericultureCommercial rearing of silk worms . It may supplement the income of the farmerPiscicultureBreeding of fish in specially constructed tanks and ponds .ViticultureCultivation of crops .HorticultureGrowing vegetables ,flowers and fruits for commercial use .

Agriculture in Pakistan Agriculture is a vital sector of Pakistan's

economy. It accounts 21 % of total GDP in Pakistan. It employs 41 % of the labor force of Pakistan. About 25 % of Pakistan's total land area is

under cultivation. Large contribution to foreign exchange

earnings. Dates back to 4500 BC in Indus Civilization

Characteristics of Agriculture: About 20% of Pakistan total land is cultivatable

and is irrigated by one of the largest irrigation systems of the world.

21.3% of our GDP comes from Agriculture Irrigation by Indus Valley Civilization (4500BC)

1. Crops (major & minor crops)2. livestock and poultry3. forestry4. fisheries

Different fields of agriculture:

Irrigation Pakistan’s has one of the largest irrigation

systems in the world. Pakistan irrigates three times more acres

than Russia Indus River and its tributaries are capable

of watering over 16 million hectares. Includes dams, barrages, headwork,

canals, and distribution channels. Indus Waters Treaty of 1960.

Limited Cultivated Area: Total area of Pakistan 79.6 million acre 23.5% under use About 8-9 million area is un cultivated

Low Yield: Low per acre yield in major crops. Like wheat, rice and cotton. Other countries get more because of

skillful labor and use of technology.

Lack of Facilities Rural infrastructure is not good Lack of education Improper storage Far away markets

Crop Intensity: Crop intensity is lower. The number of crops grown on piece of

land is known as crop intensity. Low crop intensity than developed

countries.

Crops of Pakistan Rabi Crops (harvested in early summer) (Wheat, Barley, Oil-Seeds)

Kharif Crops (harvested in early winter) (Rice, Cotton, Sugar-Cane, Maize, Millets,

etc.)

Role of Agriculture: Source of National Income Source of Employment (45% of labor force) 66.7% in rural areas depend on agriculture Reduction in Poverty Supply of food Demand for Industrial use Control over inflation Self-sufficiency

…World’s largest producer and supplier of; Chickpea (2nd) Rice (4th) Cotton (4th) Mango (4th) sugarcane (5th) Milk (5th) Date Palm (5th) Apricot (6th) Kinnow/ Mandarin Oranges/ Clementine (6th) Onion(7th) Wheat (7th)

Main Crops of Pakistan: Wheat Rice Sugarcane Cotton These constitute about 75% of total crops

production.

Wheat: Country largest crop is WHEAT 21.6 million

metric tons (2005).

Which is more than what all Africa produced (20million) and nearly equal what all South America produced (24 million).

23-25 million tons of wheat in 2012

Cotton: World’s 4th largest producer of the COTTON.

World’s 3rd largest exporter of raw cotton. COTTON produced is 15.6 million bales (2012). Bale of cotton is about 500 pounds. Rate per pound in US $ 0.84.

Rice: World’s finest long grained aromatic

basmati RICE known as Basmati Pak-10. Types: Super Kernel, Basmati Rice 385,

Brown Rice, Parboiled Rice, etc. Pakistan exports 3.75 million tons. 573 USD per metric ton.

Sugar cane: Important Cash crop of Pakistan. 35.4 t/hec with 760,000 hectors. Compared to World’s largest Brazil with

61 t/hec with 4055,000 hectors.

Contribution of Crops to Pakistan Economy: About Rs.505,000 million by MAJOR CROPS in 2005 with 55%

growth since 2000.

Rs. 185,000 million by MINOR CROPS in 2005 with 41%

growth since 2000.

Total Agriculture Sector export is Rs. 288 billion include food grains, vegetables, fruits, tobacco, fisheries products, spices and livestock.

(Federal Bureau of Statistics)

Agriculture Growth Percentagessource: Pakistan Bureau of Statistics

SECTOR 2008-09

2009-10

2010-11

2011-12

2012-13

2013-14

2014-15

Agriculture 3.5 0.2 2.0 3.6 2.7 2.7 2.9

Crops 5.2 -4.2 1.0 3.2 1.5 3.2 1.0

Important crops

8.4 -3.7 1.5 7.9 0.2 8.0 0.3

Other crops 0.5 -7.2 2.3 -7.5 5.6 -5.4 1.1

Cotton 1.3 7.3 -8.5 13.8 -2.9 -1.3 7.4

Livestock 2.2 3.8 3.4 4.0 3.5 2.8 4.1

Forestry 2.6 -0.1 4.8 1.8 6.6 -6.7 3.2

Fisheries 2.6 1.4 -15.2 3.8 0.7 1.0 5.8

Problems in agricultural sector: Flood Water-Logging and Salinity (Land Cancer) Lack of Irrigation Facilities Ignorance of the Farmers Scarcity of Funds Land Erosion Inadequate System of Transportation Under utilization of Cultivable Land (59/79.6 M.Hectors) only 20

under cultivation

Solution: Control of Water-logging and Salinity

(SCARP) Flood Control Increase in Agricultural Growth Training of Farmers Modern Techniques

Current Agricultural Policies: Kissan package. Value chain contract. Credit guarantee scheme. Livestock loan insurance scheme. Crop loan insurance scheme. Benazir tractor programme scheme.

Agriculture credit: Poor farmers cannot afford the expensive

technology, so supply of credit at easy terms and conditions is necessary.

Govt. has fixed a target for 2016-2017 at Rs680 billion.

Currently 20 banks with around 37,00 agriculture branches are facilitating farmers.

PM’s Kissan Package. Kissan Package is for the benefit of all farmers of the country.

Kissan’ package Fund of twenty billion rupees is providing fertilizers to the growers at low rate. Twenty five billion rupees have been allocated to provide Urea to the farmers at reduced rates and directed the provincial governments to ensure implementation of old rate of Urea from next month.

support measures of Rs. 5,000 per acre to the farmers to the extent of 12.5 acres, 2% reduction in rate of interest for rice and cotton growers and rise from Rs. 2,000 to Rs. 4,000 in Production Index Units (PIU) of agricultural land

Federal government will pay premium for crop insurance scheme. Interest free loans will be provided to the farmers for installation of solar tube wells or converting existing ones to the solar. Power tariff concessions for the tube wells.

PM’s Kissan Package: Duties on imported agriculture machinery have been

reduced from forty three percent to nine percent for three years.

Thirty billion rupees will be given as loan to three hundred thousand small farmers without any collateral guarantee.

PM said that the ‘Kissan’ package is for the farmers of entire nation and is not specific to any region and it is the right of all the country’s farmers. PM further said that the farmer community throughout Pakistan is suffering due to non-implementation of Kissan package.

Issuance of Rules on Value Chain Contract Farmer Financing

State Bank of Pakistan issued Rules on Value Chain Contract Farmer Financing in October 2014 to encourage banks to extend credit to small and relegated farmers by leveraging on the strengths of inter-relationships that exist in the agriculture value chain. The guidelines would benefit farmers in terms of improved output in variety of ways such as availing quality input facilities, adopting new technologies, insurance coverage for crop/non-crop activities and most importantly assurance of buyer in advance.

Credit Guarantee Scheme for Small and Marginalized Farmers (CGSSF)

SBP has confirmed Credit Guarantee Scheme for Small and Marginalized Farmers (CGSSF) where SBP shares 40 percent of credit losses of lending banks on their loans to Small & Rural Enterprises. The scheme has been launched by the government to encourage banks to finance small farmers. The government through State Bank of Pakistan has ensured provision of guarantee to banks for up to 50 percent loss sharing which will benefit 300,000 farmers. The size of the total payment will be Rs.30 billion.

Implementation of Livestock Loan Insurance Scheme SBP has successfully implemented the

Livestock Loan Insurance Scheme on the limit announcements in the budget. The scheme would protection the interest of farmers in case of loss of animals due to death and provide banks with a risk justifying tool, thus hopeful them to improve the flow of credit to this highly potential and underserved sector.

Enhancing the Scope of Crop Loan Insurance Scheme Crop insurance is a risk management tool

designed to even out agricultural risks and direct the values of natural disasters to make losses, particularly to the relegated farmers, more manageable. After the successful implementation of Crop Loan Insurance Scheme for small farmers of subsistence land holding, the scope of the scheme has recently been enhanced up to 25 acres and government is bearing the cost of premium on account of farmer’s up to 2 percent per crop per season for five major crops.

Provision of HYV: For achieving sustained growth in

agriculture sector seed is a critical basic factor.

HYV stands for high yielding variety seeds.

The Federal Seed Certification and Registration Department is providing seed certification coverage to companies of Pakistan.

Benazir Tractor Scheme: Government has launched Benazir

Tractor Scheme to deliver 20,000 tractors to the farmers.

Pakistan agriculture research council (PARC): start education programs for farmers

and give them training about farming them.

Recommendations Pakistan is still far from realizing the

large potential yield. Well-irrigated and fertile soil from the

Indus irrigation system could produce more than present yield.

The key to a much-needed improvement of productivity lies in a more efficient use of resources, principally land and water.

Recommendations Increase investments in research and

technology development Accelerate development of high

yielding/disease resistant varieties. Training Centers should be made for the

farmers Micro financing should be introduced at a

bigger scale in Pakistan for enhancement of rural areas.

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