Viable Approaches Can Double Agri Sector's Contribution To Economy: PBF

Pakistan Business Forum (PBF) Vice President Jahan Ara Wattoo has said that Pakistan's agriculture sector has great potential and its current contribution of US $ 03 billion to the economy can be doubled with viable approaches encompassing all the aspects of this vital sector as well as the concerns of the stakeholders

LAHORE, (UrduPoint / Pakistan Point News - 16th Mar, 2024) Pakistan Business Forum (PBF) Vice President Jahan Ara Wattoo has said that Pakistan's agriculture sector has great potential and its current contribution of US $ 03 billion to the economy can be doubled with viable approaches encompassing all the aspects of this vital sector as well as the concerns of the stakeholders.

Addressing a workshop here Saturday, she said that in order to realize the full agricultural potential, there is a dire need to control cartels in the commodity markets thus enabling the crop component of the agri sector to yield tangible results. She cited that the government is pinning high hopes on cotton growers and when it declared an indicative price of Rs 8,500 per 40k, it led to a strong revival of crops, and production doubled in a matter of one season. However, as soon as cotton started arriving in the market, the price crashed to Rs 6,500 per maund as the market cartels robbed the farmers of their hard-earned money.

"We observed the same phenomenon in the maize crop and its price dwindled to half of its pre-sowing value. In a production cycle with very high costs, price slides like these leave farmers crippled for years. For urea alone, the growers paid more than Rs 120 billion to black marketers this season, as the urea bags were being sold in the market at four different prices," she maintained.

Jahan Ara added that other agri puts such as diesel, electricity, water and cropping/farming labour are also very costly, while the growers by and large have to pay 22 percent bank markup, and after these massive expenses, the prices collapse leave most of the farmers under heavy debts for years.

PBF Chairman (South Punjab) Malik Suhail Talat said, "Agriculture does not fit into calendar years; it is all about continuity. Decisions made in 2024 regarding what to sow and what not to sow will define 2025. For the last decade or so, maize has anchored agriculture. With its price crashing, each farmer will now have to decide whether to continue with the maize crop or not."

He termed Punjab's wheat policy as confusing, citing that the wheat procurement and release prices were changed twice during the last two months, leaving farmers in a financial and policy lurch. The cotton crash has left farmers in a deep muddle about its future, he said, adding that early potato crop prices had slid after initial better returns and it also left the growers to think of other options. He was of the view that capitalists were manipulating political, economic and other systems in the country. All the political parties, the public and private sectors as well as all other stakeholders would have to make collaborative efforts to cope with this menace.