presentation new agri 1997 2003
TRANSCRIPT
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Agriculture Sector of Pakistan
Presented BY :
Anum Ashraf (M06BBA004)
Maryam Ijaz Perji(M06BBA018)
Rana Iram Tahir (M06BBA042)
Anum Ali Sheikh (M06BBA059
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Contents
• Introduction
• Performance of agriculture sector in
Pakistan• Salient Features of Pakistan’s Agriculture
• Different Phases of Agricultural growth
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Introduction
• Back ground and contribution to
GDP
• Impact of agriculture on poverty
reduction
• Impact of agriculture on overall
economy
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Performance of Agriculture sector in
Pakistan:
Unsatisfactory
Reasons:•Lack of motivation
•Illiteracy of farmers
•Natural disasters
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Sector Contribution(%) Growth
(%)
Major crops 34.2 -3Minor crops 12.4 7.1
livestock 49.1 3.8
fisheries 2.9 11.1forestry 1.4 -8.5
Performance in Year 2007-2008
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Salient Features of Pakistan’s
Agriculture
Climate; Irrigation and Land
utilizationProblems of water Logging and
salinity
Weights in Agriculture sector Institutional arrangements
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Climate
Total Geographical area of Pakistanis 79.6 million hectares
27% is under cultivation
80% irrigated
Cultivable waste lands amount to 8.9
million hectares
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Irrigation
• Total geographical area receives only250 mm of rain
• Two types of crops are being irrigated :
Kharif Rabi
• Canal system
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Land utilization
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Problems of Water logging and salinity
Provinc
e
Slight
lysaline
Saline-
sodic andsaline-Gypsiferous
Salin
e-sodic
Severel
ySaline
Very
severlysaline
Punjab 464.6
(28.8)
126.0
(7.8)
42.5
(2.6)
911.7
(56.5)
69.0
(4.3)Sindh 333.6
(22.1)112.3(7.5)
102.1(6.8)
846.5(56.2)
112.2(7.4)
NWFP 2.4
(17.5)
1.7
(12.4)
- 9.6
(70.1)
-
Baluchistan
0.6(2.5)
11.9(48.6)
- 12.0(48.9)
-
Total 801.2(25.4)
251.9(8.0)
144.6(4.6)
1779.8(56.3)
181.2(5.7)
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Weights in Agriculture Sector
Major crops 34.2%
Minor crops 12.4%
Live stock 49.1%
Fisheries 1.4%
forestry 2.9%
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Institutional arrangement
• Owner self-Cultivation
• Owner-cum-tenant-Farms• Pure tenant farms
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Different Phases of Agriculture Growth
• 1960’s (strong growth)
• 1970’s (Reduction in growth)• 1980’s and 1990’s (Revival)
• 2000 (again reduction in growth)
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AGRICULTURAL PRICE POLICY
Refers to determine the prices of agricultural
inputs and outputs
Incentives to produce certain goods
To control the abnormalities and to determine the
prices of inputs
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OBJECTIVES OF AGRICULTURAL PRICE POLICY
To remove uncertainty
To increase production
Economic activity
Lag Period
Lack of storage facilities
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Income disparities
To increase standard of living
Import substitute
Increasing output of exporting crops
Balanced cropping pattern
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PROBLEMS OF AGRICULTURAL PRICE
POLICY
Climate
Plant diseases
Water logging and salinity
Illiteracy
Lack of transport and communication
Defective planning
Market functionaries
Political instability
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PRICE SUPPORT POLICY
Government sets price level of
commodities little higher than equilibrium
price, called support policyIT IS FOR
Giving incentives to the farmer
Upward revision of minimum support prices
for selected crops like Wheat, Rice etc
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SETTLEMENT OF SUPPORT POLICY
APCom has been setup by the
Federal Government of PakistanAPCom HAS TASKS
To formulate support price proposals
To facilitate final decision of Govt
about the level of support prices
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STANDARD FOR DETERMINATION OF SUPPORT
PRICES
To observe prices of concerned goods
To observe changes in the prices To analyze the pattern of production
To observe the demand and supply
To observe the inflation rate To observe the terms of trade
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INCENTIVES OF PRICE SUPPORT POLICY
Compensation of cost production
Protection during harvesting
No storage facilities
Improvement in farm income
Elimination of middleman
Elimination of transport problems
Food self sufficiency
To save foreign exchange
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RURAL DEVELOPMENT PROGRAMSVillage Agricultural and Industrial Development
Programe(1953-1961) aimedTo encourage the villagers to respond to modernizing
normsTo achieve the self sufficiency in every
aspect To foster effective citizen participation in the ruralself help projects in the fields of agriculture, health, cottage
Industries etc
To develop small projects such as approach or feeder roads,
repair or construction of small schools or dispensary buildings
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SECOND FIVE YEAR PLAN
RURAL WORK PROGRAME(RWD)
Introduced in 1960
Showed good progressive signs
Public investment in rural infrastructure was boosted
There was increase in the economic prosperity and political
aspiration of the villagers
Large funds were channeled to villages
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THIRD FIVE YEAR PLAN
(1965-1970)
Objectives of the plan has two folds
First, building essential infrastructures
Second, generating temporary employment
opportunities
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FOURTH F IVE Y EA R PL AN
INTEG RATED R URAL DEV ELOPMEN TPROGRAM (1 970 -1978 )
Initiated by then PM Mr.Bhutto in 1972
IT AIMED AT Providing opportunities to improve social economic status of large
majority of small and medium villagers
Community development and development of local leadership
In rural areas
Convergence of rural development activities of people and their
organizations, govt deptt, local govt institutions and professional
groups
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SIXTH FIVE YEAR PLAN
1983-1988
It earmarked 32% of public sector expenditure for the ruralsector
A sum of Rs. 70 bn was originally allocated for ruraldevelopment
PHYSICAL ACHIEVEMENTS TARGET ACHIEVEMENT
ROADS 10,000kms 14,957kms
ELETRIFIED 20,000 villages 16525 villages
VILLAGES
BHUs 2,600 BHUs 1803 BHUs
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SEVENTH FIFE YEAR PLAN
1988-1993
Total investment in rural development was estimated at Rs.112.2 bn
Aim was to bring about a substantial transformation in in rural
lives
PHYSICAL TARGETS
To construct 8,500 kms of rural roads
To increase rural literacy rate from 21.5% to 32.0%
To cover 55% of census villages bt electricity
Creation of 2.2 million 7 marla plots to allot them to landlessfamilies
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EIGHTH FIVE YEAR PLAN
(1993-1998)
OBJECTIVES Construct of about 10,000 kms of farm-to-market rural roads
Providing drinking water to about 27.41 million additional
population
Providing sanitation facilities to about 18.81 million additional
population
Providing primary education to about 4.2 million additionalchildren
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Providing teacher training to about 0.213 millionteachers in the rural areas
Providing non-formal education to about 6.0 million
adults in the rural areas
To engage 33,000 village health workers in the rural
areas
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AGRICULTURAL IMPORTS AND EXPORTS
Direct agricultural exports increased from32% in 1968-1970 to 38%
in 1982-83
Indirect agricultural exports decline from 45% to 40%
The share of wheat un imports declined from 14% in 1972-73 to
less than 1% in 1982-83
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Maryam Aijaz Perji
M06BBA018
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AGRICULTURAL GROWTH
In 2005-2006 growth is 6.3
In 2006-2007 growth is 3.7
In 2007-2008 growth is 1.5
That shows a decreasing trend
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Types of cropsMajor crops
In 2007-2008 growth is -3.0
Food crops
Non food crops
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FOOD CROPS Rice
Wheat
Maize
Millets
Grams
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RICE
Cultivated on 2515 thousand hectures
Production is 5563 thousand tons
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WHEAT
Cultivated on 8414 thousands hectures
Production is 8578 thousand tons
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MAIZE
Cultivated on 1015 thousands hectures
Production is 3313 thousands tons
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MILLETS
Cultivated on 438 thousand hectures.
Production is 221 thousand tons
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GRAMS
Cultivated on 1064 thousand hectures
Production is 527 thousand tons
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NON FOOD CROPS
Cotton
Sugarcane
tobacco
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COTTONCultivated on 3054 thousand hectures
Production is 11655 thousand tons
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SUGARCANE
Cultivated on 1241 thousand hectures
Production is 63920 thousand tons
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TOBACCO
Cultivated on 45 thousand hectures
Production is 95 thousand tons
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MINOR CROPS
OIL SEEDS
Production is 833 thousands tons
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FARM INPUTS Fertilizer
Improved Seed
Mechanization
Plant Protection
Irrigation
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FERTILIZER In 2007 -2008 the production of fertilizer is
2087 and off-take is 2389
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IMPROVED SEEDSDuring July-March 2007-08, about 231.67
thousand tones of improved seed of various
kharif/rabi/spring/winter season crops was
distributed.
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MECHANIZATION
Mechanization as a tool for modernization of agriculture has been well recognized
The demand for tractors has increased
significantly. In order to meet tractor’s demand,
Federal Government allowed import of new andused tractors in CBU at zero tariffs. Other
On the average, an increase of about 9
percent in the prices of locally manufactured
tractors compared to last year has been recorded
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PLANT PROTECTIONPlant protection is an important factor amongst the
agricultural inputs In this regard, the Department
of Plant Protection (DPP) provides facilities, such
as, Locust Survey and Control, Aerial Pest Control
and Pesticide Registration and Testing.
Pakistan remained free from gregarious
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IRRIGATIONEfficient irrigation system is a pre-requisite for
higher agricultural production since it helps
increase the crop intensity. Despite the existence of
good irrigation canal network in the Pakistan, itstill suffers from wastage of a large amount of
water in the irrigation process.
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LAND REFORMS
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OBJECTIVES OF LAND REFORMS
Land Reforms promote equality & justice.
These promote employment.
Land reforms redistribute national income. These help to stop rural-urban migration.
These increase productivity of agriculture sector.
Land reforms provide betterment of small farmers.
These provides improvements in social status. Economic development is shared by more people due to
level reform.
Elimination of large estates.
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LAND REFORMS IN PAKISTANLand reforms of 1959
Land reforms of 1972
Land reforms of 1977
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Agriculture Credit
Credit requirements of the farming sector have been increasing over the
years with the rise in the use of fertilizers, pesticides and mechanizationand a hike in their prices
To cope with increasing demand for agricultural credit, institutional credit
is being provided through ZTBL, Commercial banks, Cooperatives and
Domestic Private banks
The Government has allocated Rs 200 billion for agriculture credit
disbursements for the year 2007-08 which is 25 percent higher than the
allocation of the preceding year i.e. Rs 160 billion. Out of the total credit
target of Rs 200 billion, Rs 96.5 billion were allocated to commercial
banks, Rs 60 billion to ZTBL, Rs 8 billion to Punjab Provincial
Cooperative Bank Ltd., and Rs 35.5 billion to Domestic Private
Commercial Banks. The agricultural loans extended to the farming
community during July- March, 2007-08
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Types of agricultural credit: Short Term: (up to one year. )
preparation of land, purchase of seeds, fertilizers, and feeds for livestock
marketing, payment of rent, interest on loans and wages of labourers
Medium Term: (up to five years) bullocks, cattle’s, implements, repair work etc
Long Term: (ten or more than ten years)
purchase or acquisition of lands, liquidation of old debts, for constructionof embankments, drainage, irrigation channels, warehouses, godowns,
reclamation of land, purchase of tractors, sinking of tube wells etc.
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Sources of Agricultural Credit:A. Non institutional sources:• Relative
• Friends
• Landlords
• Money lenders
• Shopkeepers• Commission agents
B. Institutional sources:
• Zarai Tarqiati Bank Limited
• Commercial Banks• Cooperatives.
• Domestic Private Banks
• Taccavi Loans
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Production and Development Loans:
Agricultural loans amounting to Rs. 138.6 billion were disbursedduring (July-March, 2007-08) as against Rs.111.2 billion during thecorresponding period last year
Registering an increase of 24.6 percent. The share of ZTBL in supply of total agricultural credit by institutionsdecreased and was 28.6 percent during (July–March, 2007-08)
47 percent of the total agricultural credit disbursed during July– March 2007-08.
PPCBL has also decreased as it stood at 2.8 percent
Domestic private bank has increased by 21.6 percent of the totalagricultural credit
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Crop Maximization Project: Ministry of Food, Agriculture & livestock (MINFAL) launched an
integrated development programme entitled “Crop Maximization Project(CMP)” in 15 districts of the country.
The project aimed at providing inputs for crops through Revolving Fundfor the financial assistance of the farmers in the project area.
Under an agreement, the MINFAL will provide funds to the tune of Rs299.893 million to ZTBL for onward lending to the project farmers to meetthe input requirements for various crops and ZTBL will revolve thesefunds up till 30th June 2014.
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New Schemes/Initiatives
a. White RevolutionThe Bank has earmarked funds to the tune of Rs. 5,000 million for
financing of 50,000 animals (buffaloes and imported cows) during the
five years period (2007- 2011).
c. Sairab Pakistan
ZTBL has financed over 144,478 tube wells by disbursing over Rs
14,713 million.
e. Red Meat Financing Scheme
Initially the scheme is implemented in Multan, Faisalabad, Dera Ghazi
Khan, Dera Ismail Khan, Bhakkar, Nawabshah, Dadu, Sukkur,Peshawar, Lasbella, Loralai and Khuzdar Districts branches having
good potential and repayment culture. The loans are advanced @ Rs
5000/- per Sheep/Goat, RS 3500/- for Teddy Goat and Rs 1200/- per
Kid (Sheep/Goat).
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Need For Agricultural Credit:
To Purchase Inputs
To Purchase of Implements
Improvement of LandFluctuations of Prices
Marketing and storage facilities
For The Payment of Land Revenue and Water Rate
Buildings
Population GrowthUncertain Weather Condition
Balanced Growth:
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Problems of Agricultural Credit: Gap between Demand and Supply
Securities Problem
Complicated Procedure
High Interest Rate Bad Debts
Expansive Loans for Small Farmers:
Intermediaries
Unproductive Use of Credit No Provision of Loans for Marketing Storage and
Processing
Flow of Credit to Small Farmers
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Measures To Overcome the Problems Establishment of Zarai Tarqiati Bank Limited (Z.T.B.L.)
Role of Commercial Bank
Role of Cooperatives
Taccavi Loans Role of State Bank of Pakistan
Easy Procedure
Timely Disbursement
Recovery Rate Package of All Inputs
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Live Stock
The live stock include: cattle, buffaloes, sheep, goats, camels, horses,
asses, mules
livestock accounts for 52.2 percent of agricultural value added,
contributes 11 percent to GDP and affects the lives of 30 – 35 million
people in rural areas.
Apart from provincial Government programs, the federal government has
substantially increased public sector investment in livestock sector and as
initiated projects to the tune of Rs 7.1 billion for strengthening livestock
services
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Poultry:
Poultry sector is one of the most vibrant segments of agriculture sector of Pakistan. This sector generates employment (direct/indirect) andincome for about 1.5 million people. Poultry meat contributes 19
percent of the total meat production in the country. The currentinvestment in Industry is about Rs 200 billion. Poultry sector hasshown a growth of 8-10 percent annually.
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Forestry:
Pakistan is a land of great diversity, which has yielded a variety of vegetation;
however, only 5.01 percent of total land area is under forest
Of this total forest area, commercial forest is just one-third (32.8%) and the
rest (67.2%) is under protection forests performing soil conservation, watershed
protection and climatic functions
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Fisheries:
• Main buyers of fish and fish preparations are Japan, USA Middle East,
Sri Lanka, and China etc.
• Pakistan earned US$ 188.5 million during July-March (2007-08) and
over 100,000 M. tons of fish and fishery products were exported.
• During the period July-March 2007-08, the total marine and inland
fish production was estimated to be 640,000 M. tons. Out of which
share of marine fish is 390,000 M. tons and inland contributed is
250,000 M. tons.
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Green Revolution:
The green revolution had its impact on the various aspects of farming
including the relations of production and exchange. We however pay
attention to these aspects in particular;
Impact on agricultural production
Impact on employment
Impact on income distribution
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Mechanization of Agriculture In Pakistan:
The farm mechanical technology includes:
• Chemical technology---------------plant protection measures.
• Hydrological technology-----------tube wells• Mechanical technology-------------tractors, threshers, bulldozers etc.