SIGNIFICANCE OF PUBLIC POLICIES IN AGRICULTURE SECTOR
Investors should not follow the psyche of day traders
By ASHIQUE ALI JOYO, HEC,
Dec 22 - 28, 2003
Agriculture sector is life blood of Pakistan's economy. This sector has dire need of potential stability, enlightened and consistent policies. This research article entitled "Significance of Public Policies in Agriculture Sector" is written with the purpose to analyze the various Public Policies for increasing the output of agriculture sector in Pakistan. The research article is collected on the secondary data.
Pakistan inherited an agrarian economy at the time of partition in 1947. The development of agriculture was ignored from 1947-48 to 1958 in spite of the fact that the agricultural sector was the largest contributor to the GDP. It employed 80% of the population directly or indirectly, accounted 73% of the foreign exchanges, provided raw material to the industrial sector and served as a market for industrial products.
From 1947 to 1953, agriculture remained sluggish due to (i) influx of migrant from India (ii) allotment of land to non-agriculturists, which reduced output (iii) lack of technological change etc. During 1953 to 1958 more attention was given to the industrial sector. The agriculture sector remained neglected till 1958. The production could not increase with the increasing rate of population. The average growth of this sector was 1.3 percent while the growth rate of food grains stood 1.69 percent as compared to population growth rate 2.6% during the period of 1947-48 to 1958-59. Pakistan imported over one million tones of wheat after 1952 to meet the acute food shortage. Thus within 12 years Pakistan become a net importer of agricultural commodities which created a great burden upon the balance of payments. Table 1, 2 and 3 highlight the position of agriculture sector.
LAND UTILIZATION IN AGRICULTURE SECTOR
1947-48 & l958-59
TOTAL CULTIVATED LAND MILLION HECTARES
Source: Government of Pakistan Economic Survey 1989-90, Islamabad 1990. Statistical Section P. 44-46.
LAND CULTIVATION AND OUTPUT OF FOOD GRAINS FROM 1947-48-1958-59
AREA UNDER CULTIVATION OF GRAINS
TOTAL OUTPUT OF FOOD GRAINS
Source: Government of Pakistan Economic Survey 1989-90, Islamabad 1990.Statistical Section P. 44-46.
TOTAL CULTIVATED LAND AND OUTPUT OF MAIN CASH CROPS FROM 1947-48-1958-59
CULTIVATED AREA UNDER SUGARCANE CROP
TOTAL PRODUCTION SUGARCANE
CULTIVATED AREA UNDER COTTON CROP
TOTAL COTTON PRODUCTION
Source: Economic Survey 1989-90, Government of Pakistan.Statistical Section P-44-46.
PUBLIC POLICIES FOR AGRICULTURAL DEVELOPMENT
Earlier it is stated that Pakistan inherited an agrarian economy at the time of independence. The agriculture sector remained sluggish upto 1958. Therefore government realized the importance of agriculture sector in this connection government framed various policies for the development of this sector.
a. Late Field Marshal Muhammad Ayub Khan introduced land reforms policy in 1959.
b. Late Zulfiquar Ali Bhutto introduced land reforms policies in 1972 and 1977.
CONCEPT OF LAND REFORMS
Land reform applies to all measures aimed at eliminating the undesirable features of land tenure system and making land a more efficient instrument of economic development, demolishing of big Jagirs and landlorisms and to adopt such policies that should be helpful for a betterment and advance agriculture society so that there should be better atmosphere between tenants and landlords. It also includes supply of agricultural equipments, improved seed, fertilizer, credit and irrigation facilities to farmers.
OBJECTIVES OF LAND REFORMS
1. To increase agricultural production
2. To raise level of income and living standard of farmers
3. To remove social in-equilibrium resulting from very small and very large land holdings.
Progress of Implementation of land reforms up to June 1994 (hectares), are shown in table 4.1 and 4.2
LAND REFORMS 1959
AREA DISPOSED OF
Source: Government of Pakistan, Agricultural Statistics l993-94, Islamabad 1995 P-129.
LAND REFORMS 1972
AREA DISPOSED OF
Source: Government of Pakistan, Agricultural Statistics 1993-94, Islamabad 1995 P-129.
LAND REFORMS 1977
AREA DISPOSED OF
Source: Government of Pakistan, Agricultural Statistics 1980, Islamabad 1981 P-99.
Over all progress, 565, 368 hectares of land were resumed under the various land reforms in Pakistan. Out of which 1,326,495.5 hectares were distributed among 250,470 persons which brought improvement in agricultural sector.
It means the introduction of new technology in the agricultural sector. This technology was introduced in mid-1960s with scientific and technological break through in the form of inputs like high yielding varieties of seed (HYV), fertilizers, pesticides, water, mechanization in terms of tubewells and tractors. The information of input is shown in tables 6,7,8 and 9.
Table 61966-67 & 1999-2000
NUMBER OF TRACTORS AND CONSUMPTION OF FERTILIZER
NUMBER OF TRACTOR
CONSUMPTION OF FERTILIZER (000 N/TONS)
Source: Economic Survey 1997-98 and 2001-2002, Government of Pakistan.Statistical Section PP 22 and 47.
NUMBER OF TUBEWELLS, DISTRIBUTION OF IMPROVED SEED AND CONSUMPTION OF PESTICIDES IN AGRICULTURE SECTOR.
NUMBER OF TUBEWELLS
DISTRIBUTION OF IMPROVED SEED IN (000 TONS)
CONSUMPTION OF PESTICIDES IN TONS
Source: Economic Surveys 1997-98 and 2001-2002, Government of Pakistan.Statistical Section PP 22, 48, 151 and 153.
CREDIT DISBURSED BY FINANCIAL INSTITUTIONS TO GROWERS AND AVAILABILITY OF SURFACE AND GROUND WATER
CREDIT DISTRIBUTION IN RS. MILLION
AVAILABILITY OF SURFACE GROUND WATER MAF
MAF = Million Acre Feet.Statistical Section PP 22, 26, 27, 32 and 153.
Source: Economic Surveys 1987-88, 1997-98 and 2001-2002, Government of Pakistan.
PUBLIC SECTOR EXPENDITURE ON AGRICULTURE AND IRRIGATION DEVELOPMENT DURING VARIOUS FIVE YEAR PLANS IN PAKISTAN.
FIRST PLAN 1955-60
NON PLAN PERIOD 1970-78
FIFTH PLAN PERIOD 1978-83
SIXTH PLAN PERIOD 1983-88
SEVENTH PLAN PERIOD 1988-98
EIGHTH PLAN PERIOD 1993-98
Source: GOP, Agricultural Statistics of Pakistan 1998-99. PP. 267.
AGRICULTURAL PRICE POLICY
This policy covers output price policy and input price policy. The output price refers to the fixation of procurement and support prices for important food and cash crops such as wheat, rice, cotton, sugarcane, oilseeds etc. It indicates the stabilization of agricultural prices at reasonable level which may be acceptable for the farmers as well as for the consumer but these policies, however, been changing overtime in the light of changing objectives.
COMMERCIALIZED AGRICULTURE POLICY
Commercialization of agriculture means to change the way of living of a agriculture sector and to change the rural thinking to urban thinking. The farmers are encouraged to produce market-orient product. The main purpose of this policy is to increase the income of the farmers.
AGRICULTURAL SERVICES POLICIES
There are several public sector services, which are needed to improve the production and distribution of agricultural inputs and commodities. Among these credit, marketing, education, research and extension are essential for the development of agricultural sector.
By implementing the above discussed policies, the output of food grains increased from 6.10 million tones to 28.39 million tons and the output of cash crops rose from 11.084 million tons to 48.685 million tons during the period 1959-60 and 1999-2000. The country became self-sufficient in food during 2000 and saved the foreign exchange. Its contribution to gross national product (GNP) also increased from Rs.7711 million to Rs.776219 million during the same period. More agricultural productivity can be achieved by the changing new technology, supply of agricultural credit, provision of improved seed, more use of fertilizer, water and land management and modern management skill. Through above mentioned policies, it is observed that the agricultural sector has achieved a remarkable growth rate and had met the requirements of food grain in 2000.