SMALL-scale farmers with 5-12.5 acres of land holding are an important component of the agriculture. In Pakistan, they are around 93 per cent of the agricultural community.
Despite doing a lot, they still are not in a position to increase the productivity. In this era of competition only those with low cost and high productivity can survive.
The farmers face illiteracy, capital unavailability, old farming methods, unplanned enterprise combination, lack of storage and processing facilities at farm level, low marketable surplus and inefficient marketing. They are even unaware of the recommended doses of fertilizers, pesticides, and insecticides to be applied to crops.
Small farmers apply old sowing methods because of the lack of resources to buy modern inputs. The financial capacity and deficient government support are few hurdles among the many which comes in way of cultivation. The WTO rules have been implemented but we are still far behind in every field. Our farmers are not aware of its rules and regulations as we failed in our home work.
The government can protect small farmers by providing awareness and modern infrastructure required to fulfil the WTO conditions. The government has failed in providing support to the farmer’s in disposing off their harvest. Thus, the trade liberalization will have a negative effect on small farmers.
Agricultural community will have no space to survive, as indigenous farmers will not be able to compete in the international markets. In the long run, farmers will adopt modern and cheap technology in order to survive. They may go for corporate farming.
In the corporate farming, small-scale farmers will give their land to large multinational companies who have adequate seeds, fertilizers, pesticides, heavy farm machinery combined with high-valued output and bye-products, greater investment and credit opportunities, storage facilities and efficient marketing system. This is another threat to the food security of Pakistan.
The ministry of food and agriculture has prepared the proposal and the Board of Investment (BoI) has been assigned the responsibility to find foreign investment for corporate farming.
According to the proposal, corporate farming will be given the status of industry and there will be no limitation on land ceiling. Big landlords and foreign investors will be eligible to make corporate companies and enter in this sector. Around 1.5 million acres of the government land has been allocated for it. Minfal has asked for five to 10 years’ exemption from tax and labour laws for corporate farming to bring into fold the multinational corporations (MNCs).
Policy options: It is necessary to educate farmers about the developments taking place around the world, especially to small farmers who don’t have access to these facilities. The government should start an awareness campaign on the rules and regulations of the WTO, and provide incentives to small farmers for fulfilling their basic needs.
Training programmes should be started for the issues related to free trade. The governments, the NGOs and the private sector must create enabling environment by assisting in forming effective marketing organizations, targeted agricultural research and extension, revamping financial systems to meet farm credit, improved risk management policies, security and efficient markets.
In addition, the public sector needs to invest in the provision of basic infrastructure, health, education and other human capital to improve market access and to increase the range of non-farm opportunities available to small farm households, including permanent migration to urban areas.
These interventions are possible and could unleash significant benefits in the form of pro-poor agricultural growth. But they do not seem very likely at the moment as current trends are moving in the opposite direction. For example, research and extension for small farms is declining, credit has virtually disappeared, and donor and the government investment in infrastructure are stagnant. The question remains: Is there a future for small farms?
