ISLAMABAD, July 5: The supply side of the farm sector has always been given importance but the marketing of agricultural produce is being ignored.

These views were expressed by the participants of a meeting on increasing farming profitability here on Friday.

According to a press release, the meeting was held at the head office of the Agricultural Development Bank of Pakistan (ADBP). The ADBP chairman, subject specialists and renowned experts participated in the meeting.

The meeting discussed productivity increase, right selection of crops and lowering of input cost.

An action plan, during the financial year 2001-02, was drawn to diversify farm loans and focus on more profitable agro activities and crops which have potential to grow rate of agriculture sector and become profitable business for the farmers specially small holders.

The ADPB also allocated Rs4 billion for the above mentioned priority items was made in credit plan 2001-02.

The press release said Pakistan had surpluses in various agricultural commodities but with no marketing strategy.

Resultantly there was an increase in the amount of stocks, losses to the farmers, poor recovery rate for the banks and eventually it adversely affected the national economy, it added. The emphasis should now be on producing the commodities according to the market demands.

An arrangement is being worked out on the input side. At present a small farmer stand alone entity who has to arrange for all the inputs. He can not be , therefore efficient.

The meeting decided that an institution be created which would be able to provide all the input requirements of a farmer at one place ranging from seeds, fertilizer, farm mechanization including technical services.

The organization will operate in the private sector and operate business under franchises at the union council level. In this way the farmer will be assured the right price as well as the best quality of inputs. Various partners collaborating in this venture include PSC, Millat Tractors, Angro Chemicals and Bayer.

Advanced production technology package should be imported and replicated in Pakistan which will ensure maximum yield at minimum cost. Initially, this technology package will be applied through various model farms to be identified in 49 regions of the ADBP.

The private sector will also take part in the business venture. There has to be renewed emphasis on research and training. In view of the dwindling water resources, it is important to promote the usage of drip or spray water system. It was therefore emphasized to look into the entire value chain and identify business opportunities on both the input as well as the output sides.