The use of machinery in farming is growing at a slow pace and the use of most modern, productivity-enhancing, machinery is still very limited.

The most notable improvement over the years is a wider use of tractors. But a critical look at the latest data reveals that out of the total land cultivated with tractors, nearly 90pc falls in the category where they are employed on rent. On slightly more than 10pc of such land, farmers have reported use of their own tractors, according to the FY15 statistics, the latest available so far. About 76pc growers now cultivate land with tractors, 20pc with tractors and draught animals—and only 4pc use draught animals alone.

In terms of percentage, the extent of use of other machinery namely tube-well/pump, thresher, sheller, combined harvesting machine, reaper, drill and spraying machine also shows a rising trend, the yearly report by the Ministry of National Food Security and Research reveals. But not a single machine, among those listed above, is being used extensively. Going beyond this list, the use of other machinery remains too limited to merit the attention of data collectors.

The Punjab government is currently working on a project, with Rs1.184bn budget, to promote agriculture mechanisation. Under this project, due to complete in June 2017, farmers are getting agricultural tools and implements with a 50pc subsidy.

Farmers, in both Punjab and Sindh, have been receiving subsidy on tractor purchasing as in the past. And as a result of this, the national average use of tractors in farming increased in 2015, compared to 2010

Officials say that a few thousand farmers have so far benefited from this scheme. Farmers are being provided with such implements (including water economising sprayers, crop cutters, weed extractors and seed planters) that are expected to boost per-acre crop yields.

In Sindh, too, a foreign-funded Rs2bn agricultural growth project remained in progress during the last fiscal year. As a part of this project, about 1,500 farmers got agricultural implements at 50pc subsidised prices. More than 400 conventional tubewells and over 70 solar-powered tubewells were also installed at crop fields on a cost-sharing basis.

A similar scheme is on during the current fiscal year as well, officials say without sharing their results so far.

Farmers, in both Punjab and Sindh, have been receiving subsidy on tractor purchasing as in the past. And as a result of this, the national average use of tractors in farming increased in 2015, compared to 2010, officials say.

Similarly, the use of solar-powered tube wells has become very popular helping small farmers. But generally speaking, farm mechanisation is still at its early stage in the country.

Thousands of small farmers still prepare their land, sow seed and groom and harvest their crops manually, or with the help of old-fashioned, non-electrical machines. And this is a major reason for the yield gaps and low farm productivity.

One of the reasons for the low level of mechanisation is low investment in agriculture in general, and in mechanisation in particular, according to a report of the Pakistan Institute of Development Economics.

“The federal and provincial governments periodically announce subsidy schemes for agricultural machinery but that is not enough. The country needs a well-integrated agriculture mechanisation plan with a focus on local industry of machinery manufacturing and import of productivity-enhancing machines,” says a former secretary of Sindh Agriculture Department.

“Subsidy on purchase of tractors and tubewells helps politicians gain political sympathy. Beyond that, in the absence of judicious and effective implementation of subsidy schemes, it contributes very little.”

In the last five years, banks have made larger loans to the agricultural sector. But only about 5pc of these loans, have been offered for the purchase of farm machinery, official statistics reveal.

The Punjab government has arranged bank loans for local farmers to buy sprinkler irrigation systems but it has only benefited a small number of farmers so far. The use of sprinkler irrigation system is catching up in Sindh too but mainly due to individual initiatives taken by affluent landowners, NGOs and clusters of small farmer groups.

The use of potato diggers, seed spreaders and crop driers is gradually increasing as local manufacturers are producing such agricultural implements but data gathering remains limited to an old set of large and basic agricultural machines, farmers complain.

Agriculture machinery market is developing and out of the 100-plus companies involved in agriculture machine manufacturing and distribution, at least 30 are quite active. Others focus mainly on imports.

Farmers point out that mechanised broadcast seed-sowing is essential for more and even distribution of seeds across the fields and resultant higher yields but they lament that local manufacturing of this and similar machines is missing and imports are very costly.

They also say that production of farm machinery is not undertaken after a thorough research on market requirements adding that many locally produced machines are of poor quality or have short work-life and are, thus, uneconomical.

Published in Dawn, Business & Finance weekly, December 5th, 2016