Govt mulls two-tier plan for agriculture

Published June 11, 2021
It hints at developing commodity storages to arrest higher post-harvest losses reported up to 40pc of various crops and fruits.  — APP/File
It hints at developing commodity storages to arrest higher post-harvest losses reported up to 40pc of various crops and fruits. — APP/File

LAHORE: The federal government has announced a two-tier intervention strategy under a plan to transform the agriculture sector to boost its growth measured at 2.77 per cent during the year despite large-scale losses in cotton crop.

The Economic Survey of Pakistan 2020-21 released on Thursday identifies shrinking arable land, climate change, water shortages and labour shift from rural to urban areas as main constraints in the growth of the agriculture sector.

To overcome the limitations, the government has approved an action plan with specific timeline for interventions, yield gaps and particular sectoral issues in a two-tier strategy to be implemented both by the federation and federating units.

To achieve the targets of cotton revival, olive deepening, and genetic improvement in livestock, the first generation interventions aim at bridging yield gaps, suggesting revisit of the criteria for induction, performance, evaluation and cancellation of seed companies, delineating separate requirements for local seed producers and importers with mandatory local seed production by the latter.

23pc higher farm credit disbursement target set

It also includes a system for consumer traceability for seed authenticity as well as certified seed track and traceability. The plan entails digital subsidy mechanism (Kisan card) for inputs, an emphasis on mechanisation and water efficiency, revamping extension services, and restructuring research institutes.

It sets Rs1.5 trillion farm credit disbursement target for the next fiscal, 23.5 per cent higher than the outgoing year’s Rs1.215tr. The initiatives for promoting farm financing include loan repayment relief to dampen Covid-19 effects, crop loan insurance, livestock insurance scheme for borrowers, regulatory space for innovative financing, e-credit scheme in Punjab, and credit guarantee scheme for small and marginalised farmers.

It hints at developing commodity storages to arrest higher post-harvest losses reported up to 40pc of various crops and fruits.

The government will go for crop zoning, land consolidation, organic farming, adaptation and self-discovery with second generation interventions, which include horizontal expansion, seeking international cooperation in technology transfer, developing value chains of various farm and livestock products, setting up clusters of fruit and vegetables packaging and processing industries.

Focusing the persistent cotton crop failure, the survey notes biotic stresses of white-fly and pink bollworm, abiotic stresses like climate change, heat stresses and extreme rainfalls, poor agricultural practices, unnecessary use of pesticides, higher costs of inputs, lack of early generation seed as the factors contributing to the white lint decline.

It quotes experts as suggesting cotton zoning with fixation of minimum indicative or intervention prices, and timely issuance of subsidies as indispensable to revive the crop and exploring avenues for cotton growing in Balochistan and Khyber Pakhtunkhwa where pest pressure is low and cotton yields are reportedly higher than traditional areas of Punjab and Sindh.

Published in Dawn, June 11th, 2021

Follow Dawn Business on Twitter, LinkedIn, Instagram and Facebook for insights on business, finance and tech from Pakistan and across the world.

Opinion

Editorial

Military option
Updated 21 Nov, 2024

Military option

While restoring peace is essential, addressing Balochistan’s socioeconomic deprivation is equally important.
HIV/AIDS disaster
21 Nov, 2024

HIV/AIDS disaster

A TORTUROUS sense of déjà vu is attached to the latest health fiasco at Multan’s Nishtar Hospital. The largest...
Dubious pardon
21 Nov, 2024

Dubious pardon

IT is disturbing how a crime as grave as custodial death has culminated in an out-of-court ‘settlement’. The...
Islamabad protest
Updated 20 Nov, 2024

Islamabad protest

As Nov 24 draws nearer, both the PTI and the Islamabad administration must remain wary and keep within the limits of reason and the law.
PIA uncertainty
20 Nov, 2024

PIA uncertainty

THE failed attempt to privatise the national flag carrier late last month has led to a fierce debate around the...
T20 disappointment
20 Nov, 2024

T20 disappointment

AFTER experiencing the historic high of the One-day International series triumph against Australia, Pakistan came...