AGRICULTURE is the hub of economic activity. A major proportion, 65.9 per cent of the population living in rural areas depends, wholly or partially, on the earnings from agriculture.
In the export earnings, direct as well as indirect share of agriculture is very high. It also contributes to national industrial growth as a supplier of raw materials as well as a market for industrial products. Nearly 22 per cent of the total output (GDP) and 44.8 per cent of total employment is generated by agriculture sector. Therefore, the development of agriculture is synonymous to the development of economy.
Cultivators having less than 12 acres are predominant especially in Punjab. Importance of these small farmers can be seen by the fact that out of the total cultivated area of 40.76 million acres, 19.79 million acres (48.56 per cent) is cultivated by small land holders. The total number of farms in Pakistan is 6.62 million of which small farms constitute 85.69 per cent (5.6 million) whereas at the Punjab level 85.39 per cent (3.29 million) belong to the category of small farms.
It is not wrong to say that agricultural economy is based on small farmers. But unfortunately most of these farmers are trapped in vicious circle of poverty. The main reason of which is low productivity leading to low income and small savings of these farmers. Poverty in rural areas is much higher than in urban areas.
These small farmers, who constitute more than 75 per cent of the farm community generally depend upon traditional agricultural practices due to lack of credit facilities, lack of market information, unaffordable technology, costly farm inputs and least know-how about latest techniques of raising production. All these factors lead to low productivity, affecting adversely disposable income level and saving of farmers especially smaller ones.
Public policies like price support and subsidies on inputs no doubt play an important role in augmentation of agriculture sector, but the main assignee of the government policies are often large farmers. If increase in production is obligatory, it is imperative to raise level of farm inputs like, seeds, fertilisers, water availability and pesticides. But the plight of small farmers is such that investment per acre is low, either due to paucity of funds or high cost.
Primary source of credit to poor agriculture-dependent households are market players who often exploit them for their own profit. These buyers and suppliers give credit to these farmers on condition of bound supply of their produce to these stakeholders only, hence affecting their ultimate output returns. These inputs, if available at low prices, can save farmers from the predatory behaviour of market players enabling them to save and invest more in their farm practices ultimately improving their production and standard of living.
Effort to improve the efficiency of agricultural production and increase the average per hectare yield should be top-priority of development objectives. But it will be possible only when measures are taken to improve income and productivity of these tillers who constitute more than 75 per cent of the farming community.
In this respect, the following measures can be taken to safeguard these small farmers from hardship.
Agriculture centres should be established at union council level, which should provide basic quality inputs like fertilisers, seed and pesticides at the time of need and in desired quantity.
The farmers should be provided with credit at minimum interest rate so that investment per acre can be increased which is necessary to boost productivity. In addition to this, there is also need to simplify the existing cumbersome process of loan disbursement.
Animal hospitals should be upgraded and strength of staff should be increased to save the lives of animals necessary for milk and meet.
Water availability should be ensured. First, the government should provide electricity at minimum prices to farmers. Second, subsidy should be paid on diesel as small farmers mostly use diesel driven pumps for water.
Third, the middle man should be eliminated from the market, who, without any effort, earns more than actual working people and also is the main cause of price manipulation. Under the existing circumstances it will be a bit difficult, so measures should be taken to at least minimise their exploitative role.
Some agro-based industries purchase their inputs directly from farmers but do not pay them even after one year as in the case of sugar industry. The government should ensure timely payment to the legitimate growers by enforcing laws and making other required arrangements.
If these steps are taken, the efficiency and productivity of the small farmers are sure to increase. In order to boost agricultural production and solve the problem of insufficient food supply at permanent basis, there is need to pay full attention towards solving the problems of the small growers.