BR Research: The contribution of the country's agriculture sector is relatively low at 20 percent even though the sector employs more than half of the total work force. What are the limiting factors in this regard?
Aijaz Khan: It is true that in value terms, the industrial and services sectors overshadow agriculture to an extent, however Pakistan's agriculture sector has also grown manifold. Simply consider that at the time of Independence, there were about 30 million in the country, and the output of this sector was not entirely adequate to meet all their nutrition needs. By comparison now we are a nation of more than 180 million and the country's agri sector not only meets domestic demand, we also have significant exports.
Having said that, sustained growth of this sector requires passionate pursuit of research as is practised in other countries. We had a brief period in our history back in the 1950s and 1960s which is dubbed the 'green revolution' but other than that there has been little in the way of co-ordinated efforts to really boost agricultural output. This lack of focus is among the major factors behind the relatively stymied expansion of the sector.
Policy makers have an important role to play here. Consider the country's recent experience with wheat imports in 2008-09. We ended up importing wheat which was not as good as local varieties at much higher prices from other countries because the incentive to the local growers was entirely inadequate.
Serving as Sindh Food Secretary at that time, I requested the Chief Minister to raise the export price of wheat in the province, which he agreed to do. This decision brought almost immediate results as the very next year we had a bumper crop of wheat, which has been followed by successively higher outputs. So within two years, we turned from net importers to net exporters of wheat
At present the government is offering subsidies on inputs including threshers, tractors and cutters and tractors. These tractors have not only helped in the agri sector; but were also very useful in evacuation and rescue efforts during the floods. Special quotas for women in this sector are another commendable initiative of the government. Similarly, lining of canals and waterways is underway which will help reduce water losses in the country.
We have close to 50,000 water courses in the province of Sindh, which we have been lining since 2004. The Government of Sindh has so far lined about 20 percent of these water courses. This project is being undertaken with the help of agriculturists; who provide labour and share in the cost of lining waterways within their own areas, while the necessary resources are provided by the provincial government.
We intend to expand this effort to encompass all water courses in the province, which when accomplished will help make a significant reduction in water losses, water logging and related issues such as salinity of the soil. In turn per acre yields and productivity will doubtlessly benefit.
Besides these efforts, research is also crucial as I have earlier highlighted. To this end, we have found that producing new varieties of seeds that have better yields is a very time consuming and expensive process; typically requiring over a decade. So we are negotiating collaborations with research institutes of international repute that can help us produce varieties such as BT and other hybrids that suit our climate.
BRR: In Pakistan, agriculturists predominantly rely on the use of urea as fertiliser while the use of phosphate-based fertilisers and other varieties are relatively unpopular. What are the factors behind this fixation with urea?
AK: This has been the case, predominantly because urea is relatively cheaper and more easily available locally as compared to other kinds of fertilisers. Besides price, there is also very little knowledge among farmers about the nutrient requirements of soils. While the government is actively engaged in improving the level of awareness among farmers regarding modern farming techniques, it is a gargantuan task. We are also in the process of developing bacteria that provides necessary soil nutrients. This project shall be pursued as a public-private partnership.
BRR: Providing better market access to farmers will allow them to gain bargaining power in local and international markets. There is a dire need for warehouses, storage facilities, better road and rail links as well as efficient commodity exchanges. What is the role of the Government of Sindh in these efforts?
AK: It is correct that the existing storage infrastructure leaves a lot to be desired. Procurement of commodities and maintaining adequate supplies to ensure food security is the domain of the Department of Food with whom the Department of Agriculture is in close co-ordination to improve and update the existing infrastructure.
The government's role is focused on facilitation of the private sector. By providing a conducive environment, private investors can be attracted to invest in storage and transportation infrastructure and commodity markets also need similar support from the government.
As far as improving the bargaining power of agriculturists is concerned, recently a mobile phone service has been launched. Farmers can now call a number and receive market rates of fruits and vegetables so that they are aware of the current retail rates when deciding to sell to a middle man. We believe that this is a big step in terms of providing market information to the grower, in a cheap and effective manner.
BRR: Salinity and water logging are two issues afflicting the agri sector which are likely to compound going forward. Similarly, regulations regarding water property rights and water pricing are archaic and inefficient. What is the way forward to deal with these concerns?
AK: The irrigation techniques used in our country are unfortunately such that water logging and salinity issues are being compounded. We should be moving towards efficient solutions such as the use of sprinkler systems at farms. With the help of Sindh Abadgar, we are continuing to experiment with other alternatives in terms of sowing and watering of crops.
This year we will use zero drill machines and drip irrigation techniques on an experimental basis to gauge viability of these procedures in local conditions. Drainage of the water courses is also a concern, particularly in Sindh because the topography is quite flat so water does not drain out to the sea. With the help of the World Bank we intend to construct farm drains that can help address the issue of water logging to a large extent.
Siddiqsons Industries, a local private sector group has expressed interest in manufacturing drip irrigation systems in the country. This development would help propel the agri sector manifold because it will make this technology available at a fraction of the international cost. The government is considering providing support to this initiative in the form of subsidy on the equipment so that farmers can deploy it at even cheaper rates.
In China, a company that produces similar products buys back old tubes from customers at half the listed price of new tubes. The export zone in Karachi is an excellent location for such a facility as we intend to export the equipment as well. Also now there are a number of regulations at the international level about treatments, sanitary requirements, residue effects of pesticides, so we are creating a facility over here as a certification party. So that once you have these testing facilities in this zone and if you do it for your product, it will certify you for the international market.
We are quite hopeful that this testing facility and controlled environment storage facilities will be a great boon to the local agriculture sector. BRR: Which products do you consider to be sunrise offerings in the country's agri sector and how do you intend to promote them?
AK: In co-ordination with Sindh Abadgar and USAID, a facility has been established where mangoes are treated. This facility has helped improve the shelf life of mangoes which has in turn allowed exporters to tap international markets. Due to this initiative, last year Pakistan sent its first consignment of mangoes to be sold in Netherlands. China and other countries have also expressed interest in importing mangoes from Pakistan. Similarly carrots, dates and tomatoes all hold significant potential for earning foreign exchange for the country. We are endeavouring to meet quality and safety requirements in the European Union to restore and expand our fish exports to that region as well.
BRR: How can the government reduce wastage and improve market access for the sector?
AK: The plan here in Sindh is to develop eight satellite stations that are all connected to the export processing zone in Karachi. Three such stations have already been set up at Mirpurkhas, Badin and Hyderabad. As operations are phased in, these stations will provide treatment services to the adjacent agriculturists.