Why Pakistani farmers only get 25-40% of their products
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ISLAMABAD (APP): Federation of Pakistan Chambers of Commerce & Industry (FPCCI) must constitute an agriculture desk to increase farm income, productivity and global competitiveness of Pakistan agriculture sector, said FPCCI Regional Standing Committee Chairman Ahmad Jawad.
The desk would help formulate required policies and suggestions for the government, he said in a statement. Jawad said last year the FPCCI Standing Committee on Horticulture & Agriculture Produce had sent a detailed proposal to the Federation president for the formation of agriculture desk but no concrete measures had been taken so far showing non-seriousness towards the important sector which was the backbone of economy.
He said agriculture was playing a key role in Pakistan's economy. However, if agriculture had to be globally competitive it needed investment in infrastructure that could promote efficiency by reducing transaction costs and market risks.
It has been estimated that loss of primary produce before reaching the market due to lack of proper handling, cleaning, sorting, grading and packaging facilities at the village level, he added.
Jawad said forging international co-operation for showcasing, broad basing new technologies and possible collaborative opportunities were required for the benefit of all the stakeholders in agri value chain.
However, he said, agriculture had been suffering from major roadblocks which had hindered its growth. Problems had existed at each stage of the value chain. The unreasonably long supply chain resulted in a steep increase in the total cost owing to procurement, transit and other taxes and service charges levied at various layers.
He said due to such inefficiencies in the supply chain, it had been estimated that the price received by the farmers was only in the range of 25-40% of what the consumer pays. Strengthening supply chain could benefit the consumers and producers which was required now for the real transformation.
Jawad also proposed following objectives which FPCCI President may be adopted on priority for the establishment of agriculture desk as follows.
Identify major bottlenecks that hinder the growth of Pakistan agriculture; Sensitize all stakeholders including the Federal and the Provincial Governments to catalyze the necessary policy changes that are needed to make this sector more vibrant and competitive; Address the conflicting domestic policies relating to production, procurement, pricing and distribution, rising Minimum Support Prices, ineffective subsidy system, regulated domestic markets, lack of infrastructure facilities, low productivity, low value addition, and export policies;
Define measures to attain a higher trajectory growth in agriculture in order to compete in the global market.
