Neglect of farm sector

Published August 17, 2021

PUNJAB’S Kissan Card scheme is a good initiative that will help farmers, especially smallholders, directly access government subsidies for procuring seeds, fertilisers and pesticides from registered dealers. Launching this scheme in Bahawalpur last week, Prime Minister Imran Khan described the introduction of the Kissan Card as a “turning point” in the country’s history. He also hinted at extending the initiative to other parts of the country being ruled by his PTI. It is not yet known if and when the government intends to extend the scope of the scheme to give farmers’ access to short-term collateral-free, cheaper or subsidised bank loans. Expanding the scheme’s scope will help smallholders immensely in covering the cost of cultivation, purchase of equipment, post-harvest expenses etc. It will also rid them of loan sharks who charge exorbitant rates on the loans given to farmers. Further, the extended scope can be used to provide insurance to cover crop damage sustained during natural disasters or adverse climatic impact, as well as against death or permanent disability of the cardholder. Policymakers should already be thinking along these lines. Agriculture provides livelihood to two-thirds of Pakistanis and employs 39pc of the total national labour force. Additionally, the agriculture sector, which constitutes almost a fifth of the economy, directly or indirectly, fetches almost three-quarters of the export revenue by contributing to the export of textiles, leather, rice etc. Its significance for our food security cannot be overstated either.

Nevertheless, this sector has been a picture of neglect for decades, resulting in low productivity and increased rural poverty. Sadly, initiatives introduced by successive governments to improve productivity have mostly focused on farm subsidies. No serious efforts have been made to tackle long-term issues such as deterioration in seed quality, wasteful on-farm water management, loss of soil fertility, low levels of mechanisation, farm fragmentation, unavailability of credit etc. The consequences of such policy neglect are now becoming more pronounced as falling farm productivity is forcing the government to substantially increase its food and industrial raw material imports at the expense of external-sector stability. Farm subsidies are vital to help reduce the input costs but these are not enough. Nor are these desirable for a longer period. The better way of improving crop yields and farm incomes is to address the long-standing issues afflicting the agriculture sector. The sooner we focus on these issues the better for the rural poor and the economy.

Published in Dawn, August 17th, 2021

Opinion

Editorial

Agriculture concerns
24 Jun, 2025

Agriculture concerns

PRIME Minister Shehbaz Sharif appears relieved that the IMF did not turn down Pakistan’s request to exempt...
OIC reaction
24 Jun, 2025

OIC reaction

THE OIC has, over the decades, been known to issue strong statements and not do much else when it comes to critical...
NEVs, but for whom?
24 Jun, 2025

NEVs, but for whom?

THE government’s policy gymnastics following Pakistan’s unexpectedly rapid adoption of rooftop solar have ...
US aggression
Updated 23 Jun, 2025

US aggression

If there is any state in the world that the international community must be concerned about harbouring weapons of mass destruction, it is Israel.
Finishing the job
23 Jun, 2025

Finishing the job

THE federal health minister’s assertion of a 99pc reduction in polio cases in Pakistan, while impressive on the...
Exam leaks
23 Jun, 2025

Exam leaks

FOR students who put in countless hours of hard work for their secondary school exams — mainly to secure admission...