THE Punjab government has proposed as much as Rs21bn Annual Development Plan for the agriculture sector for the financial year 2017-18, with the vision of ‘transforming the agriculture sector into a diversified, sustainable, modern and market-driven sector’.

The allocation is 5pc higher than what had been approved for the year 2016-17 and includes a foreign aid component of Rs2.761bn.

Going by the trend of allocations since the Shahbaz Sharif government came to power four years ago, the agriculture ADP is almost 75pc higher than Rs5.23bn set aside in 2013-14. It was increased to around Rs8bn in 2014-15, and to Rs10.725bn in 2015-16.

Going by the trend of allocations since Shahbaz Sharif’s government came into power four years ago, the agriculture ADP is almost 75pc higher than Rs5.23bn set aside in 2013-14

The ADP sets the goal of raising the agriculture growth rate from the existing 2.1pc to 5pc, improving service delivery to farmers with 75pc farmer access to evidence-based and diagnostic-driven extension services, and mobilising private investment of Rs75bn in the sector.

The Khadim-e-Punjab Kissan Package, included in the other development programme for the next year, has claimed a major share in the ADP. However, there is a discrepancy in the budget documents about the net worth of the Package as the whitepaper on the budget mentions its amount as Rs15bn, while the book containing the detailed development programme puts the figure at Rs10bn.

The previous year, the government had drastically revised the Kissan Package downwards from Rs10bn to just over Rs817m and, ironically, the utilisation rate of the released fund under the head was very poor at just 3.17pc.

The second biggest fund apportionment has been made for on-farm water management which amounts to more than Rs5.121bn. It contains the Rs2.761bn foreign aid component. A paltry sum of Rs50m has been allocated for new schemes, while the rest will be spent on the ongoing projects.

A sum of Rs2bn had been set aside to set up the Punjab Agriculture, Food and Drug Authority. An amount of Rs1.566bn has been allocated for ongoing and new agriculture education schemes.

A major chunk (Rs726m) of it will be for setting up the Nawaz Sharif Agriculture University in Multan, Rs240m for establishing the Punjab Bio Energy Institute at the Faisalabad Agriculture University and Rs200m to set up a sub-campus of Rawalpindi Arid Agriculture University in Attock.

Testing indigenous hydroponic greenhouses for vegetable growing at various locations in the province and 50 oversees PhD scholarships are other schemes of the sub-sector.

Like in the previous year, research remained at a low priority of the agriculture policy-makers as only Rs773.4m were earmarked in the ADP of FY2017-18 for the purpose.

The previous year, a sum of Rs1.44bn had been announced for research in the budget but it was lowered to Rs612.7m in the revised estimates, while only 2.22pc of it was utilised.

Major research schemes for the next year include the development of Pothohar into an Olive Valley (Rs200m), diversification to high-value cropping through horticulture promotion (Rs100m), commissioned research for the development of cotton seed (Rs100m), up-gradation of Faisalabad AARI infrastructure (Rs100m) and development of hybrid and OPVs in horticulture crops resilient to climate change (Rs100m).

There are four main schemes under the water management head in the ADP. The Punjab Irrigated Agriculture Productivity Improvement Project will be assisted by the World Bank with a Rs2.761bn credit facility, while the Punjab government will allocate Rs619.7m for it.

A sum of Rs668.7m has been apportioned for providing laser land levellers to farmers at subsidised rates; Rs500m for optimising watercourse conveyance efficiency by enhancing lining length and Rs500m for promotion of high value agriculture through provision of a climate smart technology package.

The agriculture mechanisation could get only Rs174.8m from the budget makers. Out of it, the lion’s share, Rs100m, will go to a hi-tech mechanisation service centre, while the introduction and promotion if hi-tech farm mechanisation technologies, and provision of GPS and tracking system in machinery of the field wing are other important schemes.

The ADP also sets ‘outcome-based’ targets for the year 2017-18. These activities include improvement of 1,200 water courses, installation of high efficiency (sprinkler/drip) irrigation system at 10,000 acres, provision of 3,000 laser units to service providers/farmers, training courses on improved water management practices to 150 farmers, rehabilitation of 450 irrigation schemes in non-canal areas, and provision of 1,000kg certified seed of lentil and mash to farmers at subsidised rates.

The policy paper that accompanied the ADP allocations claimed that the targets set for these activities during the previous year had been fully achieved.

Published in Dawn, The Business and Finance Weekly, June 5th, 2017