Cabinet Committee on Agriculture

The Economic Co-ordination Committee of the Cabinet (ECC), at a meeting on December 9 with Prime Minister Shaukat Aziz in the chair, appointed a Cabinet Committee on Agriculture. To be headed by the Prime Minister, the Committee would include provincial chief ministers and agriculture ministers, the Governor of the State Bank of Pakistan and the chairman of Zarai Tarraqiati Bank as members.
According to Dr Ashfaq Hasan Khan, Advisor to the Finance Ministry, who briefed journalists after the conclusion of the ECC meeting, stated that the Cabinet Committee would actively co-operate with the provincial governments in plans to upgrade and modernise operations in the agriculture sector. Additionally, prompt measures to address the grievances of farmers on a wide range of their problems, would also be launched by the Committee.
The terms of reference of the Committee, however, are yet to be chalked out after further high level deliberations and so it may take some time for it to begin functioning.
It may be pointed out here that a full-fledged Federal Ministry of Food and Agriculture is already in place to take care of the policy issues involving the agriculture sector in the country.
These policies include fixation of targets, both area-wise and production-wise, for the major cash crops in consultation with the provincial agriculture departments.
Additionally, support price policy for different cash and minor crops such as wheat, rice, cotton is also determined by the Federal Food and Agriculture Ministry in consultation with the provincial Agriculture Ministers.
The important decision for supporting the cotton prices so that they do not fall below the minimum price fixed by the federal government, was also taken by the federal government in the current cotton season.
In this context, the proposed Cabinet Committee on agriculture may be seen as a step to consolidate the federal government's measures to benefit the farmers at large through regular interaction with the provincial agriculture departments.
There is no doubt that despite active overseeing of affairs in the agriculture sector by the Federal Ministry of Food and Agriculture, a number of problems quite often arise for the farmers.
These problems, including occasional shortages of chemical fertilisers in the market and resultant sharp rise in their prices, adulterated pesticides, a recurrent phenomenon warranting appropriate measures to cope with the Cabinet Committee will be expected to effectively tackle.
The current season's most disturbing problem was the shortfall in the supply of wheat to deficit provinces of Sindh, NWFP and Balochistan, the situation having been aggravated by Punjab government's on the movement of the commodity outside the province.
It is hoped that such problems would not recur in the presence of the special Cabinet Committee on Agriculture and the Prime Minister would always be kept informed of occasional disturbing developments in this sector, for timely corrective measures.
One of the important needs is that extensive research should be directed by the Prime Minister in two important spheres. The first concern should be the low level of per acre yield in wheat and sugarcane and improvement in per acre yield of rice.
The Indian Punjab has excelled in these field and therefore active co-operation in the development of high yielding, pest resistant seeds may be sought from India in the research work to be taken up by agricultural scientists in Pakistan.
The other problem requiring scientific solution is the colossal wastage of irrigation water by the farmers. Guidance in this respect may be taken from China where substantially less water is used per acre while the yield they obtain is considerably higher than what is obtained in Pakistan.
The inclusion of the Governor of State Bank of Pakistan and Chairman of the Zarai Tarraqiati Bank as members of the Cabinet Committee appears to be a right approach.
The most important input in the farming sector is the loan finance at a reasonable rate of mark-up and sensible terms and conditions. The smooth flow of agricultural financing without causing any hardships and harassment to small farmers is essential to improve the liquidity position of farmers in their purchases of essential inputs like fertiliser, seeds, pesticides etc, modern agricultural implements and tractors. A closer monitoring of credit flows in this sector is therefore necessary which the proposed Cabinet Committee should be able to do with the participation of the SBP Governor and ZTB chairman.