PBF says the agriculture sector is capable of doubling the $3 billion contribution

LAHORE:

Pakistan Business Forum (PBF) Vice President Jahan Ara Wattoo said Pakistan’s agriculture sector has great potential and its current $3 billion contribution to the economy could be doubled with sustainable approaches covering all aspects of this vital sector and address stakeholder concerns.

Addressing a workshop on Saturday, he stressed the urgent need to check cartels in commodity markets to enable the crop component of the agricultural sector to deliver tangible results. He noted that the government has high expectations from cotton growers and cited the example of when it declared a target price of Rs 8,500 per 40 kg, which led to a strong revival of the crop and doubling of production in a single season. However, once the cotton started reaching the market, the price fell to Rs 6,500 per barrel as the market cartels exploited the farmers.

“We’ve seen the same phenomenon in the corn crop, with its price dropping to half of its pre-sowing value,” he continued, adding that, “in a very high-cost production cycle, price slippages like these leave farmers crippled for years . For urea alone, growers paid more than Rs 120 billion to black marketers this season as bags of urea were sold in the market at four different prices.”

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Jahan Ara added that other agricultural inputs such as diesel, electricity, water and crop/crop labor are also very costly, while growers have to pay across the board 22% bank surcharge, leaving most farmers under heavy burden debt for years after that. huge expenses.

PBF President (South Punjab) Malik Suhail Talat observed, “Agriculture does not fit into calendar years. it’s all a matter of continuity. Decisions made in 2024 about what to sow and what not to sow will determine 2025. For the past decade or so, maize has anchored agriculture. With its price falling, each farmer will now have to decide whether to continue growing corn or not.”

He described Punjab’s wheat policy as confused, noting that wheat procurement and release prices have changed twice in the last two months, leaving farmers in a financial and political quandary. The decline in cotton has left farmers uncertain about its future, he said, adding that early potato crop prices have fallen after initial better yields, leaving growers to consider other options. He claimed that capitalists were manipulating political, economic and other systems in the country. He urged all political parties, public and private sectors and all stakeholders to make collective efforts to address this issue.

Published in The Express Tribune, March 17^u2024.

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