Presentation New Agri 1997 2003

Agriculture Sector of Pakistan Presented BY : Anum Ashraf (M06BBA004) Maryam Ijaz Perji(M06BBA018) Rana Iram Tahir (M06BBA042) Anum Ali Sheikh (M06BBA059

Contents • Introduction • Performance of agriculture sector in Pakistan • Salient Features of Pakistan’s Agriculture • Different Phases of Agricultural growth

Introduction • Back ground and contribution to GDP • Impact of agriculture on poverty reduction • Impact of agriculture on overall economy

Performance of Agriculture sector in Pakistan: Unsatisfactory Reasons: •Lack of motivation •Illiteracy of farmers •Natural disasters

Performance in Year 2007-2008 Sector

Contribution(%) Growth (%)

Major crops livestock

34.2 12.4 49.1

fisheries

2.9

forestry

1.4

Minor crops

-3

7.1 3.8 11.1 -8.5

Salient Features of Pakistan’s Agriculture  Climate; Irrigation and Land utilization  Problems of water Logging and salinity  Weights in Agriculture sector  Institutional arrangements

Climate Total Geographical area of Pakistan is 79.6 million hectares 27% is under cultivation 80% irrigated Cultivable waste lands amount to 8.9 million hectares

Irrigation • Total geographical area receives only 250 mm of rain • Two types of crops are being irrigated :  Kharif  Rabi • Canal system

Land utilization

Problems of Water logging and salinity Provinc Slight Salinee ly sodic and saline salineGypsifero Punjab 464.6 126.0 us (28.8) (7.8) Sindh 333.6 112.3 (22.1) (7.5) NWFP 2.4 1.7 (17.5) (12.4) Baluchis 0.6 11.9 tan (2.5) (48.6) Total 801.2 251.9 (25.4) (8.0)

Salin Severel Very ey severl sodic Saline y saline 42.5 911.7 69.0 (2.6) (56.5) (4.3) 102.1 846.5 112.2 (6.8) (56.2) (7.4) 9.6 (70.1) 12.0 (48.9) 144.6 1779.8 181.2 (4.6) (56.3) (5.7)

Weights in Agriculture Sector Major crops

34.2%

Minor crops

12.4%

Live stock

49.1%

Fisheries

1.4%

forestry

2.9%

Institutional arrangement • Owner self-Cultivation • Owner-cum-tenant-Farms • Pure tenant farms

Different Phases of Agriculture Growth • • • •

1960’s (strong growth) 1970’s (Reduction in growth) 1980’s and 1990’s (Revival) 2000 (again reduction in growth)

AGRICULTURAL PRICE POLICY  Refers to determine the prices of agricultural inputs and outputs



Incentives to produce certain goods



To control the abnormalities and to determine the prices of inputs

OBJECTIVES OF AGRICULTURAL PRICE POLICY

 To remove uncertainty  To increase production  Economic activity  Lag Period  Lack of storage facilities

 Income disparities  To increase standard of living  Import substitute  Increasing output of exporting crops  Balanced cropping pattern

PROBLEMS OF AGRICULTURAL PRICE POLICY

       

Climate Plant diseases Water logging and salinity Illiteracy Lack of transport and communication Defective planning Market functionaries Political instability

PRICE SUPPORT POLICY 



Government sets price level of commodities little higher than equilibrium price, called support policy IT IS FOR Giving incentives to the farmer Upward revision of minimum support prices for selected crops like Wheat, Rice etc

SETTLEMENT OF SUPPORT POLICY



 

APCom has been setup by the Federal Government of Pakistan APCom HAS TASKS To formulate support price proposals To facilitate final decision of Govt about the level of support prices

STANDARD FOR DETERMINATION OF SUPPORT PRICES

     

To observe prices of concerned goods To observe changes in the prices To analyze the pattern of production To observe the demand and supply To observe the inflation rate To observe the terms of trade

INCENTIVES OF PRICE SUPPORT POLICY

       

Compensation of cost production Protection during harvesting No storage facilities Improvement in farm income Elimination of middleman Elimination of transport problems Food self sufficiency To save foreign exchange

RURAL DEVELOPMENT PROGRAMS Village Agricultural and Industrial Development Programe(1953-1961) aimed To encourage the villagers to respond to modernizing norms To achieve the self sufficiency in every aspect To foster effective citizen participation in the rural self help projects in the fields of agriculture, health, cottage Industries etc To develop small projects such as approach or feeder roads, repair or construction of small schools or dispensary buildings

SECOND FIVE YEAR PLAN RURAL WORK PROGRAME (RWD)  Introduced in 1960 

Showed good progressive signs



Public investment in rural infrastructure was boosted



There was increase in the economic prosperity and political aspiration of the villagers



Large funds were channeled to villages

THIRD FIVE YEAR PLAN (1965-1970) Objectives of the plan has two folds 

First, building essential infrastructures



Second, generating temporary employment opportunities

FOURTH F IVE Y EA R PL AN INTEG RATED R URAL DEV ELOPM EN T PR OGRAM (1 970 -1978 )  Initiated by then PM Mr.Bhutto in 1972

   

IT AIMED AT Providing opportunities to improve social economic status of large majority of small and medium villagers Community development and development of local leadership In rural areas Convergence of rural development activities of people and their organizations, govt deptt, local govt institutions and professional groups

FIFTH FIVE YEAR PLAN (1978-1983)  It earmarked 25% of the public sector expenditure to be directly spent to rural areas  Under this programe 8,200 mosque schools were started  An immunization programe reached three million children  Dai training added 5,000 trained midwives

SIXTH FIVE YEAR PLAN 1983-1988  It earmarked 32% of public sector expenditure for the rural sector  A sum of Rs. 70 bn was originally allocated for rural development

PHYSICAL ACHIEVEMENTS TARGET ACHIEVEMENT ROADS

10,000kms

14,957kms

ELETRIFIED VILLAGES

20,000 villages

16525 villages

BHUs

2,600 BHUs

1803 BHUs

SEVENTH FIFE YEAR PLAN 1988-1993  Total investment in rural development was estimated at Rs. 112.2 bn  Aim was to bring about a substantial transformation in in rural lives PHYSICAL TARGETS  To construct 8,500 kms of rural roads  To increase rural literacy rate from 21.5% to 32.0%  To cover 55% of census villages bt electricity  Creation of 2.2 million 7 marla plots to allot them to landless families

EIGHTH FIVE YEAR PLAN (1993-1998) OBJECTIVES  Construct of about 10,000 kms of farm-to-market rural roads  Providing drinking water to about 27.41 million additional population  Providing sanitation facilities to about 18.81 million additional population  Providing primary education to about 4.2 million additional children

 Providing teacher training to about 0.213 million teachers in the rural areas

 Providing non-formal education to about 6.0 million adults in the rural areas

 To engage 33,000 village health workers in the rural areas

AGRICULTURAL IMPORTS AND EXPORTS  Direct agricultural exports increased from32% in 1968-1970 to 38% in 1982-83  Indirect agricultural exports decline from 45% to 40%  The share of wheat un imports declined from 14% in 1972-73 to less than 1% in 1982-83

Maryam Aijaz Perji

M06BBA018

AGRICULTURAL GROWTH

In 2005-2006 growth is 6.3 In 2006-2007 growth is 3.7 In 2007-2008 growth is 1.5 That shows a decreasing trend

Types of crops Major crops In 2007-2008 growth is -3.0  Food crops  Non food crops

FOOD CROPS  Rice  Wheat  Maize  Millets  Grams

RICE Cultivated on 2515 thousand hectures Production is 5563 thousand tons

WHEAT Cultivated on 8414 thousands hectures Production is 8578 thousand tons

MAIZE Cultivated on 1015 thousands hectures Production is 3313 thousands tons

MILLETS Cultivated on 438 thousand hectures. Production is 221 thousand tons

GRAMS Cultivated on 1064 thousand hectures Production is 527 thousand tons

NON FOOD CROPS  Cotton  Sugarcane  tobacco

COTTON Cultivated on 3054 thousand hectures Production is 11655 thousand tons

SUGARCANE Cultivated on 1241 thousand hectures Production is 63920 thousand tons

TOBACCO Cultivated on 45 thousand hectures Production is 95 thousand tons

MINOR CROPS  OIL SEEDS

Production is 833 thousands tons

FARM INPUTS  Fertilizer  Improved Seed  Mechanization  Plant Protection  Irrigation

FERTILIZER In 2007 -2008 the production of fertilizer is 2087 and off-take is 2389

IMPROVED SEEDS During July-March 2007-08, about 231.67 thousand tones of improved seed of various kharif/rabi/spring/winter season crops was distributed.

MECHANIZATION

Mechanization as a tool for modernization of agriculture has been well recognized The demand for tractors has increased significantly. In order to meet tractor’s demand, Federal Government allowed import of new and used tractors in CBU at zero tariffs. Other On the average, an increase of about 9 percent in the prices of locally manufactured tractors compared to last year has been recorded

PLANT PROTECTION Plant protection is an important factor amongst the agricultural inputs In this regard, the Department of Plant Protection (DPP) provides facilities, such as, Locust Survey and Control, Aerial Pest Control and Pesticide Registration and Testing. Pakistan remained free from gregarious

IRRIGATION

Efficient irrigation system is a pre-requisite for higher agricultural production since it helps increase the crop intensity. Despite the existence of good irrigation canal network in the Pakistan, it still suffers from wastage of a large amount of water in the irrigation process.

LAND REFORMS

OBJECTIVES OF LAND REFORMS         

Land Reforms promote equality & justice. These promote employment. Land reforms redistribute national income. These help to stop rural-urban migration. These increase productivity of agriculture sector. Land reforms provide betterment of small farmers. These provides improvements in social status. Economic development is shared by more people due to level reform. Elimination of large estates.

LAND REFORMS IN PAKISTAN

 Land reforms of 1959  Land reforms of 1972  Land reforms of 1977

Agriculture Credit  Credit requirements of the farming sector have been increasing over the

years with the rise in the use of fertilizers, pesticides and mechanization and a hike in their prices  To cope with increasing demand for agricultural credit, institutional credit

is being provided through ZTBL, Commercial banks, Cooperatives and Domestic Private banks  The Government has allocated Rs 200 billion for agriculture credit

disbursements for the year 2007-08 which is 25 percent higher than the allocation of the preceding year i.e. Rs 160 billion. Out of the total credit target of Rs 200 billion, Rs 96.5 billion were allocated to commercial banks, Rs 60 billion to ZTBL, Rs 8 billion to Punjab Provincial Cooperative Bank Ltd., and Rs 35.5 billion to Domestic Private Commercial Banks. The agricultural loans extended to the farming community during July- March, 2007-08

Types of agricultural credit:  Short Term: (up to one year. ) preparation of land, purchase of seeds, fertilizers, and feeds for livestock marketing, payment of rent, interest on loans and wages of labourers

 Medium Term: (up to five years) bullocks, cattle’s, implements, repair work etc

 Long Term: (ten or more than ten years) purchase or acquisition of lands, liquidation of old debts, for construction of embankments, drainage, irrigation channels, warehouses, godowns, reclamation of land, purchase of tractors, sinking of tube wells etc.

A.

• • • • • •

Sources of Agricultural Credit: Non institutional sources: Relative Friends Landlords Money lenders Shopkeepers Commission agents

B. • • • • •

Institutional sources: Zarai Tarqiati Bank Limited Commercial Banks Cooperatives. Domestic Private Banks Taccavi Loans

Production and Development Loans:  Agricultural loans amounting to Rs. 138.6 billion were disbursed during (July-March, 2007-08) as against Rs.111.2 billion during the corresponding period last year  Registering an increase of 24.6 percent.  The share of ZTBL in supply of total agricultural credit by institutions decreased and was 28.6 percent during (July–March, 2007-08)  47 percent of the total agricultural credit disbursed during July– March 2007-08.  PPCBL has also decreased as it stood at 2.8 percent  Domestic private bank has increased by 21.6 percent of the total agricultural credit

Crop Maximization Project:  Ministry of Food, Agriculture & livestock (MINFAL) launched an integrated development programme entitled “Crop Maximization Project (CMP)” in 15 districts of the country.  The project aimed at providing inputs for crops through Revolving Fund for the financial assistance of the farmers in the project area.  Under an agreement, the MINFAL will provide funds to the tune of Rs 299.893 million to ZTBL for onward lending to the project farmers to meet the input requirements for various crops and ZTBL will revolve these funds up till 30th June 2014.

a.

New Schemes/Initiatives White Revolution

The Bank has earmarked funds to the tune of Rs. 5,000 million for financing of 50,000 animals (buffaloes and imported cows) during the five years period (2007- 2011).

c.

Sairab Pakistan ZTBL has financed over 144,478 tube wells by disbursing over Rs 14,713 million.

e.

Red Meat Financing Scheme Initially the scheme is implemented in Multan, Faisalabad, Dera Ghazi Khan, Dera Ismail Khan, Bhakkar, Nawabshah, Dadu, Sukkur, Peshawar, Lasbella, Loralai and Khuzdar Districts branches having good potential and repayment culture. The loans are advanced @ Rs 5000/- per Sheep/Goat, RS 3500/- for Teddy Goat and Rs 1200/- per Kid (Sheep/Goat).

Need For Agricultural Credit: To Purchase Inputs To Purchase of Implements Improvement of Land Fluctuations of Prices Marketing and storage facilities For The Payment of Land Revenue and Water Rate Buildings Population Growth Uncertain Weather Condition Balanced Growth:

Problems of Agricultural Credit:         

Gap between Demand and Supply Securities Problem Complicated Procedure High Interest Rate Bad Debts Expansive Loans for Small Farmers: Intermediaries Unproductive Use of Credit No Provision of Loans for Marketing Storage and Processing  Flow of Credit to Small Farmers

Measures To Overcome the Problems         

Establishment of Zarai Tarqiati Bank Limited (Z.T.B.L.) Role of Commercial Bank Role of Cooperatives Taccavi Loans Role of State Bank of Pakistan Easy Procedure Timely Disbursement Recovery Rate Package of All Inputs

Live Stock The live stock include: cattle, buffaloes, sheep, goats, camels, horses, asses, mules livestock accounts for 52.2 percent of agricultural value added, contributes 11 percent to GDP and affects the lives of 30 – 35 million people in rural areas. Apart from provincial Government programs, the federal government has substantially increased public sector investment in livestock sector and as initiated projects to the tune of Rs 7.1 billion for strengthening livestock services

Poultry:  Poultry sector is one of the most vibrant segments of agriculture sector of Pakistan. This sector generates employment (direct/indirect) and income for about 1.5 million people. Poultry meat contributes 19 percent of the total meat production in the country. The current investment in Industry is about Rs 200 billion. Poultry sector has shown a growth of 8-10 percent annually.

Forestry:  Pakistan is a land of great diversity, which has yielded a variety of vegetation; however, only 5.01 percent of total land area is under forest  Of this total forest area, commercial forest is just one-third (32.8%) and the rest (67.2%) is under protection forests performing soil conservation, watershed protection and climatic functions

Fisheries: • Main buyers of fish and fish preparations are Japan, USA Middle East, Sri Lanka, and China etc. • Pakistan earned US$ 188.5 million during July-March (2007-08) and over 100,000 M. tons of fish and fishery products were exported. • During the period July-March 2007-08, the total marine and inland fish production was estimated to be 640,000 M. tons. Out of which share of marine fish is 390,000 M. tons and inland contributed is 250,000 M. tons.

Green Revolution: The green revolution had its impact on the various aspects of farming including the relations of production and exchange. We however pay attention to these aspects in particular;  Impact on agricultural production  Impact on employment  Impact on income distribution

Mechanization of Agriculture In Pakistan:

The farm mechanical technology includes: • Chemical technology---------------plant protection measures. • Hydrological technology-----------tube wells • Mechanical technology-------------tractors, threshers, bulldozers etc.