Government urged to allocate Rs 15 billion to agriculture sector to boost GDP growth

The government could enhance the GDP growth rate target through agriculture sector by increasing crop production, thereby making the country a major agriculture product exporting country.
Stakeholders insist that government must give priority to agriculture sector and allocate at least Rs15 billion for the required infrastructure which has remained neglected since 1947.
CEO of Harvest Trading Ahmad Jawad told Business Recorder that currently, Pakistan's sugarcane yield is 40 percent lower against global benchmarks, wheat yield is 20 percent lower, non-basmati rice yield is 40 percent lower, cotton yield is 20 percent lower and milk yield per animal is 90 percent lower. Low output also adversely affects the farmers' earning capability.
"Our agriculture sector," he said, "faces huge post-harvest losses of 40-80 per cent if compared with global benchmark. In such a scenario, the government must focus on cold storage facilities in the budget to curtail post harvest losses especially in fruits and vegetables. Similar is the case with agriculture credit facilities, farm mechanisation and availability of water. These structural problems need to be addressed."
On the Agriculture credit, he said that State Bank of Pakistan had set an indicative agricultural credit disbursement target of Rs285 billion for the current fiscal year, 2011/12. The Indian government, by comparison, set the target at $93 billion.
In exports, though the country last year exported around 1.71 million tons of wheat after the removal of a three-year ban. Due to stiff competition in the international markets, Pakistani products are finding it hard to compete with lower-priced wheat. The expected surplus of 4-5 million tons may not benefit Pakistan's exports and wheat stocks may face damages because of shortage of storage facilities.
Similarly, export of Pakistani dates, with proper processing and packaging, could fetch between $200 million and $240 million per annum. Currently, Pakistan earns around $28 million per annum from dates export because of a lack of infrastructure.
Last year, around 134,000 tons of mangoes were exported against the target of 170,000 tons out of a total production of 1.7 million tons, generating a revenue of just $38 million. It could exceed to as much as $100 million but here again the issue of infrastructure is a big impediment.
Over the past five years, an average of 2,960 tons of apples with a retail value of about Rs6.7 billion were exported on an annual basis, constituting just 0.5 percent of the total production in Balochistan.
Thousands of tons of apples are being wasted in Swat because there is no technical expertise and infrastructure, while the production also remains limited. Pakistan is among top apple producers in the world.
Ahmad Jawad said that annually, just Balochistan produces more than a million tons of various varieties of fruits - 90 percent grapes, cherry, and almonds; 60 percent peach, pomegranate, and apricot; 34 percent apples. The province is the fifth largest producer of dates with an estimated production volume of 583,000 tons but its exports suffer becausse of non-availability of infrastructure.
We could earn billions of rupees from exports of fruits if proper infrastructure is available from Gligt Baltistan authorities. Japan had expressed its willingness to invest in this area but we are behind?
The country has an ample opportunity in the livestock sector. Pakistan has around 159 million animals and Halal meat export from the country has the potential to surpass $500 million mark over the next five years by complying with the international codes. Agriculture has a great potential, but the government is not giving due attention to this sector. It is unfortunate that to-date, Pakistan has not computerised its land revenue information system. "Currently, subsidies given to this sector are eaten up by irrelevant people."
"Development of this sector would help enhance competitiveness of our export products and ensure a better return. It would also decrease dependence on imports, thereby narrowing the trade gap," he said.