While the national bill for edible oil imports has been rapidly mounting, reaching from Rs77 million at the end of 70's to a staggering current amount of about Rs43 billion
, edible crops of the country have failed to contribute significantly to lowering imports except for a brief period in the 90's. That does no credit to the planners of the agriculture sector.
What could be the explanation - sheer incompetence of managers, policies undermining national economic interests or the hold of the import mafia over decision makers? Whatever the case, it is clear that close to $1 billion are being annually spent on imports when the country has resources for substantially scuttling the bill, if not altogether eliminating imports that widen the trade deficit.
Another fall out of imports is depriving growers of rightful dividends of their sweat and toil and enriching farmers in far away lands at their cost. There is no justification for the continuance of the policy of importing edibles that take a heavy toll of national financial resources when the needs can be substantially met by the country itself with just a little effort.
The Pakistan Oilseed Development Board (PODB) officially presides over the sector. It managed to reduce the import bill in mid 90's to the tune of about Rs4.5 billion but it has not been productive since then while it has everything going for fulfilling its mandate of increasing edible crops.
This is particularly notable because the sunflower crop of last year was easily marketed at a reasonably good rate and what is more important, the farmers did not have to look around for buyers; the buyers were at the farmer's doors even prior to harvesting. But more farmers were not motivated to grow the crop this year while conditions were as conducive as they were last year.
The set up for providing impetus to the sector and incentive to farmers by Benazir Bhutto government in 1994, the PODB was created as a self-financing organization. It earns funds through a cess of five paisa per kg on the import of edible oil which means that there is flaw in the very founding of the Board. That is an important factor though it does not tell the whole story.
The PODB has far more mileage from increase in oil imports than from enhancing sunflower and canola cultivation to reduce dependence on imports. But accusing the organization for deliberately undermining the very sector it is mandated to promote would be unfair and hasty condemnation though the fat from imports may be a factor in its ineffectiveness.
The PODB has in fact placed evidence of its lack of quality know-how on record through a campaign for promoting sunflower cultivation. It has been advising farmers about cultivation of the crop in the third week of February while stating that sowing of sunflower for the spring season commenced in the Punjab province on January 1.
It is informing cultivators that stocks of hybrid seed are available with private seed companies, advising them about the land best suited for the crop, instructing them on the quantity of seed to be used per acre and method of sowing sunflower.
Exactly what it can gain from the campaign to guide farmers at this stage is anybody's guess because those who grow the crop completed sowing the crop more than a few days back. The PODB efforts are thus far off the target and cast negative reflection on the way it manages the sector.
The claim of gradual increase in the cultivation area of sunflower is also to be taken with a strong dose of salt. It has been reported that cultivation has been completed on 644,110 acres of the target sowing area of 735,000 acres; the target, it is said, would be achieved.
How is that to be accomplished after the sowing time is over is difficult to imagine. It is also said that sunflower cultivation is continuing in Sindh but cultivation cycle in Sindh is a few weeks ahead of Punjab and must have been completed much earlier than mid-February.
Acreage statistics are also to be questioned. Sunflower crops are raised entirely from hybrid seed. PODB advises using two kg hybrid seed per acre; experts place the quantity at 2.25 to 2.50 kg for the same land.
According to market reports, the sale of hybrid seed for the current crop was around 950 ton. This adds up to less than half a million acre under sunflower, possibly higher acreage than the previous year but the increase can only be marginal at best.
Canola is no different from sunflower; if anything, it is worst off because it is not cultivated on more than one hundred thousand acres. The pity is that not only does Pakistan need these oil crops to bring down imports but also because of many other factors. The foremost of them is a shrinking of water resources. These are water friendly crops and could replace crops demanding extensive irrigation.
At a time when Pakistan is growing crops heavily dependent on water and also importing their produce, edible crops offer an economic breakthrough that is urgently needed.
It is not an impossible target; India has already achieved near one hundred percent autarky in this field. Pakistan possesses all the conditions conducive to the growth of these crops but they remain ignored either because of short-sightedness of planners or due to the influence exploitative importers wield in decision-making centres. Whatever the reason, the national economy is being subverted.
The promotion of these crops is important from the viewpoint of public health too because people are growing increasingly aware of the health concerns. Another plus point of edible crops is that they would give a boost to domestic solvent industry. Currently it largely relies on imports that are more expensive than local seed for edible oil.
The argument that imported seed has higher oil content is neither here nor there because the difference is about five to six percent while savings in foreign exchange would more than offset the advantage with which imported seed is credited with if local crops supply seed to the solvent industry.
There is good news from one front, however. The bumper cotton crop means an increase in cottonseed quantity. This should be instrumental in cutting down imports by about ten percent. But this is not enough and in any case, depending on cottonseed for meeting domestic edible oil needs is hardly the best approach.
The government was expected to launch an 'action plan' for enhancing edible oil crops before the commencement of their sowing and proposals were reported to have been finalized for this purpose by August last year. But there is no sign of such a plan so far. Hopefully, some positive measures would be adopted before the next sowing is due.
Meanwhile, the PODB has promised to ensure easy marketing of the produce. There seems every reason to trust it in view of the market conditions of the last year. It has also assured growers that the solvent industry would get in to agreements for the purchase of the crop with them.
That should be expedited. Effective implementation of these pledges and measures should act as incentive on farmers next year and hopefully more of them would turn to edible crops as a better and more rewarding option.
Pakistan must concentrate on edible crops to strengthen the economy, more efficient application of dwindling water resources and provide more openings to farmers for earning more. These ends cannot be left as hostage in the hands of some vested interest groups.
