In spite of the significance of oilseed crops in reducing the country’s dependence on imported edible oil, neither the government nor the growers are moved to step up production of the crops.

Farmers generally prefer sugarcane and rice because of the better returns these offer on their investment.

Growers feel discouraged by the market price the oilseeds fetch and are also handicapped by the absence of an enabling environment. The farmers, who go for cultivating sunflower, often feel disgusted because they are left at the mercy of the market.

The Pakistan Oilseed Development Board (PODB), disbanded in 2012 following the 18th amendment, has been revived, but its restricted mandate is to look after only the Federally Administered Tribal Areas and the federal capital. Oilseed crops like mustard, sunflower, rapeseed and canola lack the congenial investment climate in provinces where they are grown.

Sindh heavily contributes to the production of sunflower and other oilseed crops. Yet, the sources in the provincial agriculture department do not view the situation as encouraging. They don’t focus on crops that are of short duration in the rabi season.

The growers do not get adequate price for sunflower and mustard crops, which vary between Rs1,400-1,500 per 40kg. Only last year did the average price of the two crops go up to Rs2,200-2,300. And seeds with lower yields are a major problem for cultivators.

The Punjab Seed Corporation has come up with its own seed. This seed, according to a sunflower cultivator in Sindh, Nadeem Shah, is cheaper than the imported variety

The sunflower seed is imported every year to meet at least 90pc of Sindh’s requirements. The Punjab Seed Corporation has come up with its own seed. Punjab’s local seed, according to a sunflower cultivator in Sindh, Nadeem Shah, is cheaper than the imported variety. And sunflower’s acreage is shrinking due to the market’s behaviour.

“I am getting Rs1,500-1,600 per 40kg for sunflower at a time when its harvest has just started, which means the price will decline further. Previously, its average price was Rs2,300-2,400 per 40kg,” he added.

The support price for wheat is largely secured with the government’s procurement policy. For oilseed crops, there is no such cover and their output has declined.

According to the federal government’s figures, sunflower acreage dropped to 383,000 acres in 2013-14 from 1.1m acres in 2010-11. Sindh cultivated the crop on 308,000 acres and harvested 137,602 metric tonnes.

“We used to intervene and coordinate with the solvent-extraction industry and sunflower producers when the PODB was fully operational,” said a federal ministry source.

“The government needs to put things on the right track, particularly to cut the import bill of edible oil which stood at $2.5bn in 2013-14,” he said.

The international market is also not encouraging for the growers. Recent reports indicate that canola’s per tonne cost is around Rs42,667 and sunflower’s at Rs44,907 — not very attractive to entice local farmers.

Sindh Abadgar Board President Abdul Majeed Nizamani suggested that the government fix the price of sunflower and other oilseed crops for at least three years and then enforce its decision.

Published in Dawn, Economic & Business March 16th , 2015

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