Pakistan is fundamentally an agricultural country, with a substantial portion of its economy reliant on agriculture. However, in recent years, Pakistani farmers have experienced significant losses in key crops such as wheat, rice, maize, sesame, and cotton.
The primary factors contributing to these losses include climate change, ineffective agricultural policies, a lack of modern technology, and a deficient market system. These challenges have resulted in farmers often receiving less than the full value of their produce, forcing them to sell their hard work at lower prices. The market is predominantly controlled by middlemen and large traders, which hampers fair compensation for farmers.
As circumstances evolve, it is imperative for farmers to adopt a business-oriented mindset. They must view farming not merely as a profession but as a business, learning to transform losses into profits. By focusing on the better processing of raw agricultural products, farmers can enhance their market value. This process, referred to as “value addition,” has the potential to significantly increase farmers’ profitability.
The primary objective of value addition is to process raw agricultural products to enhance their worth, thereby enabling farmers to achieve higher profits. For instance, a fruit processing company may purchase mango from farmers at 100 rupees per kilograms, subsequently transforming them into juice and selling it for 500 rupees. This principle is applicable across various agricultural sectors.
Pakistan produces millions of tons of milk annually, typically sold in its raw form. In contrast, however, developed countries process milk into yogurt, cheese, butter and other products, which are marketed at substantially higher prices in international markets. This exemplifies an effective model of value-addition that Pakistan could emulate.
In the rice industry, for example, value addition could facilitate the production of instant rice noodles, which are in high demand globally. Additionally, extracting corn oil or creating other food products from maize represents another avenue for generating additional profits. The significance of value-addition in the textile industry cannot be overstated, as it can markedly enhance the country’s export capacity, contributing to economic stability and creating numerous job opportunities.
Countries such as Bangladesh, India, Vietnam, and China have made remarkable strides in the domain of value addition, elevating their textile industries to meet global standards. For instance, despite not producing cotton, Bangladesh generates approximately six billion dollars from value-added textile products derived from one million bales. In contrast, Pakistan, a leading cotton producer, earns merely one and a half billion dollars from the export of the same quantity of cotton. This disparity underscores the inadequacy of Pakistan’s performance in value addition.
China and Vietnam have established their positions in the global market through value-added products, including fashion brands, technical fabrics, and ready-made garments.
The Indian textile industry is similarly recognized worldwide for its value-added offerings, such as high-quality garments and carpets. Conversely, the trend of value-addition within Pakistan’s textile sector remains weak, with a predominant focus on exporting raw cotton and yarn.
Regrettably, Pakistan’s textile industry has yet to develop any internationally recognized brand products. The promotion of value-addition in Pakistan is an urgent necessity. Through enhanced value addition, both farmers and industrialists can not only achieve greater profitability from their production but also contribute to the stabilization of the national economy. Employing modern machinery and technology in agricultural processing can improve both the quality and quantity of products.
It is crucial to provide training to farmers to equip them with knowledge of modern agricultural techniques and processing methods. The government must also implement supportive policies and incentives to promote value addition. This includes financial assistance, tax incentives, and modern research facilities to enable farmers and industrialists to produce products that meet international standards.
Pakistan possesses numerous agricultural products ripe for value addition. For example, mango production can be leveraged to create juice, jam, and chutney, all of which enjoy strong demand in global markets. Similarly, wheat can be processed into bakery products, rice into instant foods, and maize into cornflakes, all of which can be sold at premium prices.
Several challenges hinder the promotion of value addition within Pakistan’s economy, including a lack of investment and modern technology. Financial constraints often prevent farmers and industrialists from processing their products. Additionally, access to global markets poses a significant challenge, as the quality and pricing of Pakistani products often fail to compete on the international stage.
To address these challenges, the government must provide financial support and facilitate access to modern technology for farmers and industrialists. Furthermore, a concerted effort is needed to enhance the branding and marketing of Pakistani products in global markets to ensure their quality is recognized internationally.
Cooperative farming among farmers is a vital strategy for promoting value addition. This model allows farmers to pool their land, resources, and labour, thereby reducing costs and enabling joint investment in processing and value addition. Through cooperative farming, farmers can aggregate substantial quantities of agricultural produce, invest in modern machinery, or establish processing facilities.
Consequently, they can enhance the processing and packaging of their products, resulting in higher market prices. Corporate farming represents another important model for fostering value addition. In this agricultural framework, large companies enter into agreements with farmers to utilize their land through modern practices.
Companies provide advanced agricultural technology, machinery, and expertise, while farmers contribute their land and labor. This symbiotic relationship benefits both parties, yielding greater profits for farmers and higher value for companies through processed agricultural products.
By adopting corporate farming, not only can agricultural production be augmented, but profits can also be realized from selling processed products, such as mango juice, dairy items, instant rice foods, and bakery products in international markets. Implementing this model in Pakistan will not only improve farmers’ livelihoods but also contribute to national economic growth.
Ultimately, value addition in agriculture and industry serves as an effective means to stabilize Pakistan’s economy while providing lucrative opportunities for farmers and industrialists. By embracing models such as cooperative and corporate farming, agricultural production can be enhanced, and farmers can receive fair compensation for their efforts. A collaborative approach among the government, farmers, and industrialists is essential to implement practical measures that promote value addition, stabilize Pakistan’s economy, ensure farmers reap the full benefits of their labor, and elevate the standing of our products in global markets.
Copyright Business Recorder, 2024
Comments