The agriculture scientists were of the consensus opinion that only development of agriculture and agro-based industries can help counter the challenges posed by the WTO regime.
Expressing their views at a seminar on 'Agreement on Agriculture under WTO and its implication of Pakistan Agriculture' organised by Sindh University of Agriculture, Tando Jam, in collaboration with 'Technology Transfer Institute, at Tando Jam on Thursday, they said that if Pakistan wants to take strides in global competition from 2005, a paradigm diversification of agriculture sector is imperative.
They said that there was no denying the fact that the agriculture has played a dominant role and has been a driving force in the national economy.
They said that agriculture provides employment to about 47 percent of Pakistan's workforce, shares 24.7 percent of GDP and contributes to the tune of 65 percent to the country's export earnings.
Dr Ghulam Hussain Soomro said that western exponents of WTO extol the virtues of trade expansion, free market, privatisation, end of subsidies and unrestrained competition as a prescription for rapid economic growth, enhanced productivity, greater employment and higher living standards. But, ironically, all these cherished goals have remained illusive for the developing countries.
Trade rules administered by WTO, agreed by a member nations that they will not place quota on import goods or give preference to domestic goods, "have both opportunity and risk" to the developing nations.
He said that a debate is till continuing between leading trade powers and countries from Third World.
He said that China and India, which make 40 percent of total world population are harbouring doubts about WTO in the wake of fracturing of the global trading system. India has signed FTAs with South-East Asian trading blocs and rich Asian developing countries and is reaching out to other regional groups like Asean, Mercosor, Apec, Sadec etc.
He said that Pakistan is the only country which has imposed 15 percent GDP on fertiliser and pesticides, whereas inputs such as seed, fertiliser, pesticides and energy should have been made cheap and easily available without indirect taxes. He said it should be the responsibility of the state to promote research and ensure availability of certified seeds. He said it is the only way that Pakistan can satisfy its domestic consumers and compete in the export trade.
Criticising the imposition of GST on agriculture inputs he said the unfortunate part of the story was that Pakistan's per acre yield was 27 maunds in Rabi 2000, when a record crop of 21 million tons wheat was harvested, did not exceed 25 maunds in Rabi 2004.
DAP fertiliser has an immediate impact on wheat yield. The support price of DAP in India is Rs 65 whereas in Pakistan it is Rs 106. The Indian farmers, therefore, have 50 percent more incentive for using DAP compared to Pakistan. India subsidises DAP, whereas Pakistan charges GST on it. No wonder, that yield in India is 25 to 30 percent higher than Pakistan.
Pakistan collects only Rs one billion on GST on fertiliser and pesticides, the output in loss is more than Rs 6 billion to national economy.
He said it was the need of the hour that all stakeholders belonging to both public and private sectors reorient their plans and action in their own areas of duties and jurisdiction.
He said a policy maker, an administrator, a researcher, educator, extension worker should collect and make available the needed information and research findings to the stakeholders engaged in producing, processing, packing, sale and trade sector. He suggested a number of proposals for the development of sustainable development of agriculture sector.
Dr Rajab Ali Memon said that Sindh agriculture is in a morass since 1998-99 mainly due to poor availability of water. A plethora of factors including land degradation, sea intrusion, non implementation of the 1991 water Accord, adverse price policy, seed crisis, dubious inputs supply, poor research, extension and agri support system and various structural factors such and skewedness, high incidence of poverty, natural disasters and vast arid and coastal areas have resulted in low areas under cultivation as well as low yield and productivity during the last five years.
He said that all federal planning for agricultural development is based on conditions prevailing in Punjab. Sindh is not even considered to play a strong partner in food security which might be in the long run against national interest.
Dr Abdul Hayee Qureshi, SSO, WTO cell, SSD, PARC, explained in detail the Agreement on Agriculture (AoA) and its implications on Pakistan's agriculture. He also explained in detail the agreements on trade related intellectual property rights, agreement on the application of sanitary and phytosanitary measures and on agreement on Technical Barriers to Trade.
Muhammad Akram, Director-General, Agriculture Extension and Research, who was the chief guest, said that quality and cost-effectiveness would be the only criteria to have market access in WTO regime.
He said that Pakistan's farmers are fully competent to fight for their survival by cultivating demand-oriented crops with particular emphasis on quality and cost efficiency.
He said that a number of export processing zones are being set up all over the province to help the farmers in processing their products to exploit export potential.
Dr Bashir Ahmed Shaikh, Vice Chancellor of Sindh Agriculture University, Tando Jam, said that sustainable development with adequate policies along with forecasting system for farmers was imperative to meet the challenge posed by the free market regime which is around the corner.
He was also critical of imposition of taxes and indirect taxes on agriculture sector and said that when the government is not subsidising agriculture products it has no right to fix the price of agriculture commodities, and pleaded for letting the free market mechanism decide the prices of agriculture commodities.
He emphasised the need for setting up a WTO cell to take up the task for transfer of modern technology and methods which could help improve the quality of crop and cost-effectiveness.
He also urged the research scholars to work vigorously in various disciplines of the agriculture particularly for improving the seed production technology.
He said the University would soon constitute a task force for conservation and judicious use of water as the province is faced with 60 percent shortage of water and the situation would not improve unless mother nature came to rescue to help out of present situation.
He said that other irrigation methods such as drip irrigation or sprinkling system should be introduced. He said that food security "does not mean only crop, also means alternative sources of the crop".