After the devastating floods of 2010, Sindh’s agriculture sector has performed well for over next three years. It is now time to consolidate the gains achieved so far and fill in the existing gaps created for want of effective project implementation.

The provincial revenues are up and political stakes of the ruling PPP are also high in rural Sindh. This makes the case for launching a major agricultural initiative stronger and easier.

But, unlike in FY14, when implementation on agricultural development schemes hit snags, a focused approach is required to ensure timely execution of ongoing projects and new initiatives announced in the upcoming budget.

Consider this to have an idea of how agricultural development plans have moved so far during the current fiscal year. Of the total allocation of Rs6.217bn, Rs3.242bn were released in nine months to March 2014. Of the disbursed, the actual utilisation was Rs1.667bn or only 26.8pc of the allocated funds or 51.4pc of the released funds in nine months. “By most optimistic estimates, hardly 40pc of the allocated amount will be actually utilised by the end of this fiscal year in June,” fears a senior official of Sindh agriculture department.

“Farmers no more look towards the government,” says a former secretary of Sindh’s agriculture department. “Private sector initiatives now make things happen. And these initiatives come from companies, NGOs, close communities and individuals alike.”

So, something is wrong somewhere. “The bureaucratic machinery isn’t working well and political oversight is missing or weak,” says a former Sindh agriculture minister.

However, from crop-raising to poultry and fish farming to cattle breeding/milk processing, the performance of those actually involved in these activities is not too bad.

For example, in this marketing year (October 2013 to May 2014) cotton output in Sindh rose to about 3.8m bales from 3.4m bales a year ago. Rice production is also estimated to have risen to 2.6m tonnes from 1.85m tonnes. Sugarcane output increased to 17.4m tonnes in 2013 from 16m tonnes in 2012. Wheat sowing for 2015 crop is over now and provincial officials say that production would range between 3.7 -3.8m tonnes up from 3.6m tonnes this year.

“Actually, farmers no more look towards the government,” says a former secretary of Sindh’s agriculture department. Private sector initiatives now make things happen. And these initiatives come from companies, NGOs, close communities and individuals alike.”

Milk processing companies have revolutionised dairy farming in Sindh and Punjab; big poultry farmers are installing controlled-environment sheds for poultry birds. That has given a boost to poultry industry. Food processing companies and some individual politicians have set up modern livestock breeding farms over the last few years. Similarly, entrepreneurs are establishing small fishing farms across Sindh and traditional fish exporters are now investing in construction of modern fishing boats and fish processing units to benefit from an enlarged overseas market after the lifting of the EU ban on imports of fish from Pakistan. Some entrepreneurs have even set up a few ostrich rearing farms in and outside Karachi.

“In the entire spectrum of agriculture, private sector is visible everywhere,” says an official Sindh government. “But this doesn’t mean the government is sleeping. We’re well on course to install modern steel silos for grain storage under public private partnership. We have already set up the management company responsible for developing modern dairy village and meat processing zone near Bhambore. Besides, projects for ensuring water availability, boosting supplies of certified seeds and facilitating production of minor crops are at different stages of implementation.”

Policymakers in Sindh government feel there is a need to develop a comprehensive medium to long term development plan for agriculture, livestock, poultry and fishing in the province. “Implementation on stand-alone annual development plan for each of these sectors needs to be accelerated. But in the absence of an all-encompassing vision, things get messed up which you have to sort out after a lag of time,” insists a former director general of Sindh agriculture department’s extension services wing.

Take for example, the case of growers switching over from major crops to minor crops or cattle-raising or fish or poultry farming when their particular crop doesn’t work well in a given year. “In 2009-10 Sindh’s cotton output had hit a historic 4.2 million bales but the floods in 2010 and resultant chaos in cotton sector led many farmers to try their hands on something else. Four years since then we’ve still not been able to bring cotton output back to the 2009-10 level.”

Growers say that FY15 agricultural development outlay should include an allocation for promotion of agro-based industries. And more importantly, a mechanism must be introduced to ensure that all incentive packages announced by provincial government or federal government or state institutions like the central bank are implemented in letter and spirit.

“The case of the SBP’s concessional loans for setting up rice mills is a classic case of gross negligence,” says Majid Sanghore, a rice grower from Ghotki. “Under the scheme, evolved by the SBP and Sindh Government, rice millers were to get subsidised loans for setting up new rice mills or refurbishing the old ones. Commercial banks, which had to channel these loans, silently buried the scheme.”

Published in Dawn, Economic & Business, June 2nd, 2014