Agricultural experts emphasise the necessity of a unified federal-provincial approach to address systemic issues. Consistency in policy and leadership is critical, they argue, as frequent changes in key positions hinder long-term progress.
Pakistan’s agricultural sector, a cornerstone of its economy, is grappling with challenges despite record-breaking harvests in 2023-24. While the federal and provincial governments have lauded the year as a success, citing a 6.25 per cent growth in the sector, farmers and stakeholders express dissatisfaction with key policy decisions, particularly in Punjab.
The past fiscal year witnessed a remarkable surge in agricultural production. Wheat, the staple crop and a vital contributor to Pakistan’s economy, saw its harvest climb to 31.4 million tons, exceeding the previous year’s 28.2 million tons. This success pushed wheat’s share in agriculture to 9 per cent and bolstered its contribution to the GDP to 2.2 per cent. Other crops followed suit: rice production jumped by an astounding 34.8 per cent to 9.9 million tons, while cotton saw a 108.2 per cent increase, with harvests reaching 10.2 million bales. Conversely, sugarcane production slightly declined by 0.4 per cent to 87.6 million tons.
Despite these promising numbers, farmers’ enthusiasm was short-lived. The Punjab government, under an agreement with the World Bank, refrained from procuring wheat, leaving growers at the mercy of market forces. This decision undermined the government’s minimum support price (MSP) of Rs. 3,900 per 40 kg, with farmers often receiving at least Rs. 100 less. “This price discrepancy has cost farmers dearly,” lamented Khalid Mahmood Khokhar, President of Pakistan Kissan Ittehad. “Wheat acts as an economic engine for farmers; a fair price for wheat positively influences other crops.”
Policy Challenges and Farmer Discontent
Punjab’s withdrawal from the wheat market marks a significant shift in agricultural policy. The provincial government’s decision aimed to reduce fiscal strain but left farmers vulnerable to volatile market dynamics. Khokhar predicts a downturn in wheat production for the current fiscal year, which could negatively impact overall agricultural growth.
To mitigate the fallout, the Punjab government has introduced initiatives such as the Kissan Card program. This scheme provides subsidized inputs and interest-free loans up to Rs. 150,000, with a budget of Rs. 9 billion allocated for the year. Other measures include the Green Tractor scheme, offering Rs30 billion in financing for tractor purchases, and the solarization of 7,000 tube wells with a Rs9 billion allocation. While these steps have been welcomed, stakeholders argue they cater to only a small fraction of farmers.
“The initiatives are encouraging but insufficient,” said Rizwan Malik, a farmer from South Punjab. “Rising costs of seeds, fertilizers, diesel, and labor have offset the gains from higher yields. The lack of timely and fair payments, particularly in sugarcane farming, adds to the frustration.” Malik also highlighted water scarcity and the need for comprehensive reforms in agricultural processes, from input procurement to crop marketing.
Broader Concerns and the Need for Reform
Agricultural experts emphasise the necessity of a unified federal-provincial approach to address systemic issues. Consistency in policy and leadership is critical, they argue, as frequent changes in key positions hinder long-term progress. Yusuf Zafar, former chairman of the Pakistan Agricultural Research Council, pointed out that Pakistan’s population growth outpaces its agricultural production, necessitating a sustained annual growth rate of over 6 per cent.
“Political will and coordinated efforts are essential to achieve surplus crops,” Zafar asserted. “While rice exports have doubled this year, incidents like the European Union intercepting consignments due to pest issues highlight the need for stringent quality control.”
Adding to the uncertainty, the federal government’s restructuring and rightsizing drive has unsettled employees in agricultural institutions. “Amid fears of mergers and closures, critical departments related to agriculture and research are struggling to function effectively,” Zafar noted. “Without stability, the sector’s progress is at risk.”
Complex Dynamics
The path forward for Pakistan’s agriculture sector hinges on addressing these challenges comprehensively. Farmers, who form the backbone of the rural economy, need fair market access and robust support systems. Policymakers must ensure that initiatives like the Kissan Card have broader reach and tangible outcomes. Investment in irrigation infrastructure, affordable inputs, and modern farming practices is vital to sustain growth.
As the government navigates these complex dynamics, one thing remains clear: the potential of Pakistan’s agriculture sector can only be fully realised when the benefits of record harvests are equitably shared among all stakeholders. Failure to do so risks not only economic setbacks but also the livelihood of millions dependent on this critical industry.
