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More sales and export of tractors key to success in agrarian economy

Pakistan can lead world in modern farming practices by its cheaper tractor prices, making

Mechanization could boost agrarian productivity to the hilt. Farmers across myriads of countries have adopted technology for ever-enhancing farm production besides ease and efficiency. Pakistan, being an agrarian economy, must have adapted its farming practices long ago, which could have altered the economic landscape. Farm mechanization in numerous countries globally has ensured stunning production resulting in tremendous economic activities which eventually leads to burgeoning exports and decelerating unemployment.

Between two and three million tractors are sold across the globe per annum primarily for the agriculture production. The sales of tractors soar with every passing day in the wake of ever-increasing demand by the progressive farmers across the world, however, the situation in Pakistan is still dismal, to say the least. China and India are the leading consumers of tractors globally, perhaps because of large population in both the countries and also by virtue of more awareness and lower prices along with the support for the poor farmers. Pakistan also announces support prices for some crops to help out the impoverished farming community, however, much is yet to be done to catch up with the rest of the world in terms of modern agrarian practices.

Use of tractors is still a luxury in many parts of Pakistan beyond the affordability of small farmers who find it tough to get loans from the banks. One must notice that the higher the agriculture production, the soaring the sales of the tractors in Pakistan, which indicates that Pakistani farmers are keen to mechanize farms which in reality is beyond their means. Pakistan’s economy performs tremendously in general whenever there are bumper crops resulting in higher sales of tractors, fertilizer etc. Primarily, sugarcane, cotton, rice and wheat crops drive the agriculture sector of Pakistan. Mechanization of these crops could alter the economic landscape of Pakistan. Though there is no survival sans industrialization these days, however one needs to know that food security due to population explosion across the world has brought the agrarian sector to the limelight.

 

There is no denying that the prices and production cost of tractors in Pakistan is far more cheaper vis-à-vis the world. Indigenization program initiated a couple of decades ago has brought numerous benefits to the economy of Pakistan in terms of lower prices of tractors and the exports of tractors to Afghanistan and some African countries to the benefit of economy. Pakistan makes the lowest priced tractors in the world, to be precise. Production cost of tractors across the world is far more higher than Pakistan, however, this does not seem to have helped Pakistan tremendously. Pakistan should have become by now one of the leading exporters of tractors following the footsteps of Europe, which has the credit of 60 percent of total global agricultural machinery exports. Agricultural tractors followed by tractors for construction and mining applications are in high demand but the use of tractors in the Asia/Pacific region is primarily for the agrarian use.

Under-performance of agriculture sector in Pakistan is primarily attributed to poor management or insufficient availability of water, however, the major contributor to this decline might be no or little mechanization. Farm mechanization has beefed up agrarian production to manifold in numerous countries globally whereas Pakistan lags behind. The small farmers find it hard to make body and soul together let alone buying tractors for enhanced production. Pakistan’s agriculture growth was dismal standing of 0.85 percent during FY19 calling for prompt action for the mechanization of the agriculture sector which should be growing at minimum 4 percent due to the burgeoning population and dwindling exports. Inter-cropping is taking place in certain areas of Pakistan benefitting both the farmers and the economy, however, the pace seems to be slower than expected.

It is the job of the government to address the issues such as cash crunch within the farmers’ community, awareness, lower taxes for the purchase of tractors and more and more awareness in this regard. It is for sure that if the sales of tractors soars in Pakistan, the agriculture production would increase dramatically.

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