HYDERABAD: The Sindh Abadgar Board (SAB) has prepared its proposals for the budget 2021-22.

The proposals included installation of telemetry system on 14 main canals of three barrages and increasing the agriculture research budget to 1.5pc of the gross domestic product (GDP) and agriculture credit from $9bn to $25bn.

SAB has also proposed that the 20-year-old project of land record computerisation be completed on a priority basis to enable farmers to avail credit.

It said the share of agricultural credit of Sindh in the national portfolio should be increased from the current 16pc to 23pc corresponding to its share in the agricultural economy.

It pressed for an efficient irrigation system to leverage technology. Federal and Sindh governments should install telemetry system on 14 off-taking canals of the three barrages in Sindh. Real-time information of canal flows would improve governance, enhance transparency and efficiency. Freshwater flow recharges aquifers, wells etc, therefore, instead of lining of main distributaries water efficiency be focused and lining of watercourses increased with target of at least 75pc of 57,500 watercourses’ lining in terms of total length. This should be in addition to WB’s projects, it suggested.

The SAB document says that Sindh being southernmost province receives polluted water from Balochistan and Punjab which has affected Indus River. Indus is now considered as one of polluted rivers in the world. Its water pollutes aquifers and water bodies.

It stressed on completion of the Right Bank Outfall Drain (RBOD) at the earliest.

Calamity-hit districts and drainage

SAB says that after the 2020 rains, seven districts of Sindh were declared calamity-hit and the losses to the rural economy were assessed at Rs250bn. In many areas even winter cultivation has now remained impossible due to faulty drainage system. It suggests that more districts, like Tando Allahyar, be linked with the drainage system as they do not have drainage at all. Blocked natural waterways should be cleared in order to drain out rainwater during flooding.

Regarding revenue record, SAB says that the 20-year-old land revenue computerisation project be completed as soon as possible so that small landholders’ access to credit facility could be increased.

Cold storage facility

SAB in its document points out lack of cold storage capacity. Absence of infrastructure and a lack of investments in value addition as well as expertise in post-harvest handling of produce add to the losses leading to loss of exports and qualitative production.

It suggests Sindh government evolve an aggressive agro value-addition plan to take advantage of horticultural production and international market of $89bn. There is a demand for horticultural products in China and Central Asian countries. The country and Sindh could only become in a position to take advantage when value-added industry in raw material is encouraged.

One-window operation

SAB has also proposed one-window operation for immediate approval of demands for electricity, drainage, loans etc for value-added industry like packaging houses, controlled atmosphere storage and fruit and vegetable processing etc. In view of high cost of doing business for horticulture industry, long-term loans for 10 years be granted, it suggests. This would attract foreign investment and help create joint venture opportunities in small and medium enterprises to generate employment, enhance foreign exchange earnings, reduce dependence on main commodities etc. The initiative would also help take advantage of China-Pakistan Economic Corridor (CPEC) projects.

Import bill

The SAB document points out that prices of farm inputs are deregulated while output prices are regulated through different measures like export ban and duty-free imports of agricultural commodities. This policy has resulted in a surge in the import bill of agricultural goods.

It proposes that Sindh government in collaboration with the federal authorities should pursue import substitution policy. This would happen when local production is viable. Cotton, tomatoes, oilseeds, pulses etc can be grown locally if output prices are rationalised corresponding to high input price.

It notes that there is no price check in the tractor industry and there are no technological improvements. Import of duty-free used tractors up to 10 years should be allowed to encourage manufacturing of efficient tractors in the country, it suggests.

Milk and meat production

According to SAB, productivity of milk and meat in the country is very low. A transparent mechanism is required for provision of cost-free medicines, health services and technical input to livestock farmers for their animals.

About climate change, SAB says that the federal and provincial governments should create emergency response fund for cash grants and interest-free credit to landless farmers in order to help them rehabilitate themselves. It also proposes introduction of an insurance scheme for farmers.

Published in Dawn, May 12th, 2021