Economics of organic fertiliser

Published September 15, 2008

WHILE using fertiliser what is the best option for the farmer from an economic point of view? Social scientists in the system have studied the question and come up with optimisation proposals for the next wheat crop in the Rabi season.

Such recommendations passed on to the farmers through the extension system replace gut feeling by factual working.

A number of calculated methodologies have been used to determine the rate of return to the farmers on use of organic and inorganic fertilisers. These include partial budget analysis, marginal analysis, dominance analysis, marginal rate of return and the minimum rate of return that is acceptable in these times of galloping inflation along wit sensitivity analysis that should an intervention go wrong what can be done to reduce the impact.

A study of the various interventions chemical, organic and the different kinds of organic interventions is a worthwhile undertaking. Nibge’s bio-power used in conjunction with chemical fertiliser increased yield by 10 per cent approximately. Since the cost of organic fertiliser (in this case bio-power) is less, there is considerable improvement in cost of inputs and the output results have also shown an increase.

The other experiment was with effective microbial (EM) technology. The Japanese placed microbes aerobic and anaerobic in the same cell although they were in conflict with each other. This technology that I have witnessed for the ten years or so has a great potential and the experiments carried out by various agronomists were analysed by Sharif, a social scientist at the National Agricultural Research Centre Islamabad. He found that the technology was cost effective and the income roughly three times the control group. The main reason was that the cost of factor inputs was extremely cheap at Rs300 per bag of 50 kg and the output similar or slightly more. The bonus was that the soil health improved due to the use of organic matter.

Ideally, the organic matter ought to be around two per cent for benefits to accrue. The current status of organic matter in the soil is less than 0.1 per cent making for a very toxic soil. The medium for production soil is the next important variable after the technology that is in the certified seed.

Pakistan’s policy-makers have been glossing over the interventions that the chemical agriculture has brought to them. That is understandable. Within the concept of chemical agriculture, the donor agencies by creating a halloo over neo-liberal economics and the role of the market place perverted the situation to the extent that there is no control over market manipulation. If the multinationals are in it for profit that is understandable but greed and monopoly are not acceptable ?

Ill advised, as the developing countries are, the current scenario has again changed in Pakistan. The multinationals were given subsidies by the last government for developing the milk market. They have now tried to extend that subsidy concept so that despite huge profits they can still come to the decision makers for subsidies.

So when the MNC say that they are developing the economy, they are in fact in stinking profit business. The best and the second best results were from EM and from where half the chemical fertiliser and fermented water is used by the researcher. The table gives you an analysis of the dominant analysis carried out by Sharif.

I have given you a simplified version of the research and the analysis that was carried out by researchers. It is obvious that these MNCs have not provided the data that is required.

The biological analysis is not quantifiable as it leads to quality of soils assessment. Besides, with the increase of I grain and straw, there was a marked improvement of soils. Similar experiments in Egypt and other countries have supported the same results. In fact from the US comes the report from the Rhodale Institute talking of coercion and foul play by their domestic chemical industry which used all kinds of propaganda to belittle the use of organic material.

Net benefit of investment per rupee (marginal rate of return) below indicates:

• Biopower-one rupee benefit Rs5.43.

• Mineral N-source-one rupee to Rs11.65.

• Farmyard manure-one rupee to Rs6.95

• Farm manure plus EM- one rupee to Rs6.6

Has Pakistan been successful in getting into organic agriculture and have the farmers taken it to the field. There is growing awareness and the new system is now coming into position. The area that under organic grains was about 37,000 acres in 2006-07, in the Kinoo citrus area 29,000 acres, and in rice cul;tivation 20,000 acres. While in the sugar cane area in Jhang and Toba Tek Singh, it is 10,000 acres, using sugar cane sludge. In herbs this has been especially successful for small farmers where the Linseed flax is on 400 acres; 500 acres of medicinal plant (ispagol), Kalongi, Sesame seed etc in Faisalabad. In Sindh 700 acres of bananas are on organic fertiliser, and in Nawazabad 2,000 acres are using organic agriculture systems besides Fazal farms has 750 acres under Jojoba. In Ghani farms, the area under organic onions in Tando Allahyar is 2,000 acres. The farms have 66 fermenters for organic delivery.

In the Northern areas Hunza traders under the able guidance of Durrani have all the Hippophae (seabuck thorn), a medicinal plant, under organic cultivation and the world demand for this crop cannot be met. Similarly ,Panwar farms near Hyderabad are also in the act. A survey is now under way to determine what is where. So the survey will reveal what is the percentage increase from the bench mark figures of 2006-7.

A team of organic group has been put together and the next step is to have this formally in the education curricula in the teaching systems. We now have Ph. D’s available in organic agriculture from Germany and some biochemists who are involved in this work. Some of the advantages listed in organic agriculture are: There is no chemical poisoning. So that one’s children are protected. Prevents soil erosion and improves soil health. Provides support to small-scale farmers who can not purchase high priced chemical fertiliser. Saves energy and gas. The food tastes better.

The land has become alkaline because of the continuous use of chemical fertiliser. It has also become thirstier as the soil does not hold water in the root zone. Farmers have suffered immensely.

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