Tuesday, December 24, 2019

Causes/Factors of Agriculture Sector Decline In Pakistan

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Causes/Factors of Agriculture Sector Decline In Pakistan

Objective:
 To establish the causes/factors those are associated with the decline or backwardness in the Agriculture sector of Pakistan during Last years and to find out some remedies to overcome Agriculture sector decline in Pakistan.
Abstract:
This study is about factors that take part in the decline of agriculture sector in the GDP growth rate of Pakistan. The important variables of this study is major crops, other crops which contributes in the agriculture sector and after that study also provide the results/causes of decline of agriculture sector in the GDP growth rate of Pakistan. Our results show that there is a strong relationship in our variables agriculture sector and GDP growth rate. Research also provides the significant impact of Major crops and other crops on agriculture sector and contribution towards (GDP) Gross Domestic Product. Causes can be lack of farmer’s knowledge, scarcity of water, pests and crop diseases, poor means of transportation, false policies of government, soil erosion, lack of capital etc.
Introduction:
Throughout Pakistan's economic development and stability the agricultural sector has an important role to play. It is perceived to be the leading sector in the early stages, but its production is constantly declining because of the economic, financial, environmental and climate conditions. The pace of rural change has been very slow, leading to food insecurity, poorness, unemployment, analphabetism etc. It is very important to remain centered on increasing food production through effective irrigation and innovative technology, diversification of agriculture, help services to agriculture etc.
Agriculture is an exclusive field in which our lifestyles and our business are united. The farming sector is the largest part of Pakistan's economy. About 23.4 percent of the agricultural sector contributes to Pakistan's economy. The agricultural sector focuses mainly on providing our people with food safety  
Relatively to maximizing production. It provides us with livelihoods and connectivity in the country. In rural areas about 70 percent of Pakistan's total population lives. Nearly 45% of the workforce works in agriculture. The government of Pakistan Provincial focuses on target bases for increasing the efficiency of Pakistan's agricultural sector. Agriculture is a key raw materials production field for the downstream manufacturing industry. The key role of agriculture is to minimize poverty and provide jobs that countries really want. Our agricultural sector's primary purpose is to diversify it from independence to productivity. Sadly, Pakistan is based on conservative production processes and on self-dependency, the primary cause of low productivity. Many advanced technology is used by developed countries and maximizes production per acre. When per acre output is poor, so lower earnings and the farmer does not gain more income is not unnecessary money for buying high quality crops, better pesticides, better technology is also less because of lack of these items.
There are two crops in Pakistan i.e. Rabi & Kharif:
Crop | Sowing season | Harvesting season
Kharif | April – June | Oct – Dec
Rabi | Oct – Dec | April – May
The major crops in Pakistan are wheat, rice maize, cotton, and sugarcane and oil seeds. According to an economic survey by Pakistan, the contribution by major crops in the agricultural sector is about 25,6%, while the position of major crops in GDP is almost 5,4%. The value of wheat in agriculture is approximately 10.3% and the GDP is 2.2%. Rice is cash plus a food. The best and most popular rice in the world is produced in Pakistan. Pakistan is skilled but we do not have too much ability to export a lot of good rice that inevitably impacts on the exchange reserve because of some inherent problem. Rice is almost 3.1%, though GDP is 0.7% in our agriculture. Cotton is a cash crop that provides our textile industry with raw material, and its GDP share is approximately 1.4 million. Sugarcane is also an ingredient of money and meat. Our sugar sector is based on sugar cane raw material. Sugarcane adds 3.4 per cent to agriculture and GDP 0.7 per cent. The spices, cotton, grams, jawar, bajra, petroleum and barley are the minor cultivations of our crops. minor crops adding 11.6% in agriculture sector.
Certain major crops showed negative growth, as cotton, rice and sugarcane production declined respectively by 17.5%, 3.3% and 19.4%. Positive growth involves the production of wheat and maize, respectively at a level of 0.5% and 6.9%. Other crops showed a 1.95% growth mainly because of an increase in pulse and oilseed production. Because the production of cotton was decreased by 12.74 per cent. The farming industry showed a 4.0% growth. There was a rise of 6.47% for the forestry industry, which is mainly due to a 26.7 to 36,1 thousand cubic meters increase in timber production in Khyber Pakhtunkhwa.
The backbone of national economy and a major source of food security and employment – recorded a dismal growth during the outgoing fiscal year 2018-19 primarily due to water scarcity. According to State Bank of Pakistan’s annual report for FY18, credit outreach in the agriculture sector decreased by 5.1 percent, which shows banks were not opening their doors of credit to newcomers, which also affected the farmers.
So in this research we have to find what are the reasons/causes/factors that affecting the agriculture sector of Pakistan and causes for decline in agriculture sector of Pakistan.


Methodology:
Though the agricultural sector is facing problems in Pakistan yet the major chunk of money comes from this sector. Following are the major causes of agricultural problems in Pakistan which disturb the agricultural growth or development in Pakistan.
Y=x1+x2+x3+x4+x5+x6+x7+x8+x9+x10+x11+x12+x13+x14+x15
Y=dependent variable
Decline in agriculture sector
X01=independent variables
Lack of Education
X02=independent variables
Lack of Capital
X03=independent variables
following old tradition
X04=independent variable
Water logging and salinity
X05=independent variables
Scarcity of Water
X06=independent variable
Land Tenure system
X07=independent variable
Soil erosion
X08=independent variable
Lack  of organized marketing
X09=independent variable
Pests and crop diseases
X10=independent variable
Poor means of transportation
X11=independent variable
Lack of credit facilities
X12=independent variable
Uneconomical land holdings
X13=independent variable
Natural Calamities
X14=independent variable
Poor Livestock
X15=independent variable
Low yield per acre
·         This research used the sample random sampling method and time series method for data collection.
·         Using the Descriptive and Quantitative approach questionnaire and all question are closed handed.
·         Primary and secondary data collection


 Results:
The bar chart shows the Agriculture decline during the last years in Pakistan.

·        Major causes/factors of Agriculture Sector decline in Pakistan:

1.     Lack of Education:
The farmers of our country are mostly un-educated and lack technical knowledge .They are unable to understand the modern scientific methods of agriculture and often remain  ignorant of good means to protect and  increase their yield. Their production is therefore low.
2.       Lack of Capital:
The majority of our farmers are poor and they often live in a hand to mouth position. Most of them are always under heavy burdens of debts. So due to lack of capital they cannot afford to purchase modern scientific implements, chemical manures, improved types of seeds etc. Hence they cannot attain the required standards.
3.       Following the Old Traditions:
Most of our farmers remain stuck in their forefathers ' ancient traditions. The condition has pushed them to use raw materials, since they are unable to obtain and use modern scientific tools due to small holdings of land and hardship. Therefore, they have a lower standard than farmers in developed countries.
4.       Water-logging and Salinity:
The improper use of irrigation water has contributed to the casualties of these two dangerous illnesses, most of our agricultural fields. Salinity itself turns nearly 1,000 acres of arable land into marches and ground of salt each year. No less dangerous is the processing of heat. The measures taken to date, on the other hand, are quite inadequate for these problems.
5.       Scarcity of Water:
Because of water a shortage, which is one of our major problems, our farmers will face other problems. Because of water scarcity, large areas of land measured at around 22 million acres remain uncultivated. Rainfall is unpredictable and our country's current irrigation plants are not enough and should be expanded.
6.       Land Tenure System:
Pakistan's land tenancy system has created a connection between the government and the tenants. The process stands in the way of its advancement rather than conducive to agricultural development.
7.       Soil Erosion:
In some areas of our country, especially in hilly regions, the upper fertile soil is being eroded by different natural agents of change .Thus the fertility is poor and soils are becoming less productive.
8.       Lack of Organized Marketing:
Throughout Pakistan there is still far from a satisfactory level of sales infrastructure for agricultural products. Due to defective marketing organizations, our growers cannot just receive prices for their products. In addition, a large portion of its products are taken up by the intermediary chain between producers and end consumers. As a result, farmers are not very interested in expanding their product. 
9.       Pests and Crop Diseases:
Due to the absence of farming awareness and modern research techniques, our farmers cannot deal with different plant diseases and pest and insect assaults. The result is poor returns.
10.   Poor Means of Transportation:
Farming operations in our country are undertaken in rural areas, but most of our villagers have no access to our markets by road or rail. Farmers must therefore encounter endless difficulties in selling their products. Farmers are therefore very concerned about their profession and their production.
11.   Lack of Credit Facilities:
Areas, layouts, livestock, agricultural supply, seeds, fertilizer, irrigation, transport, etc. are the resources necessary for agricultural operations. Farmers have quick access to credit for the efficient and prompt acquisition of these assets. The A.D.B.P and the banks offer insufficient loans to farmers, as our farmers are very poor.
12.   Uneconomical Land Holdings: 
Because of our heritage law, our farmers are commanding very limited, costly hands. For a small piece of land, a farmer can't afford tractors and other machinery so his income is weak. His focus is therefore transformed into a different sector.
13.   Natural Calamities:
The reality that crops worth the rupee cores were annually ruined by flooding and other natural disasters is another cause for Pakistan's low productivity.
14.   Poor Livestock:
The quality of the animals is very low and small. Because of their poor quality, they need more, adding unnecessary hardships on poor farmers. Another cause for cattle degeneration in our country is malnutrition. As a result, they have some kind of disease.
15.   Low Yield Per Acre:
Despite the above details, it is obvious that in our country the per acre yield of various crops is comparatively low compared to other countries. We're backward then. 

Conclusion:
As an agricultural country, Pakistan's agricultural sector remains backward. To overcome all agricultural issues, it is important to implement modern techniques, the availability of credit facilities, basic infrastructure and agricultural research facilities.
Recommendations:
·         Small farmers must be focused. The major problems of small farmers should be solved first.
·         Provision of latest machinery, pesticides, insecticides and fertilizers to such farmers must be ensured at subsidies prices.
·         Consumer friendly policies must be formulated e.g. they must be provided with accessible loans from banks.
·         Productivity enhancement programs must be constituted to adjust and support prices.
·         Different Agricultural zones should be introduced. As Multan is famous for its Mangoes and citrus fruits so it must be made Mango, citrus zone through which perishable products should be exported. Pakistan Agricultural storage & Services.
·         Corporation needs to take steps in this regard.
·         Corporate farming like giving lands to Mitchells, Nestle and Multinational companies is also a good idea that will also help those who own a large area of fertile land but can't manage it.
·         Surplus vegetables and fruits must be exported. A scheme worth Rs.39 million has been approved for the current fiscal year for establishment of agro export processing zone for fruits, vegetables and flowers. This will also help in commercializing agriculture.
·         Farmers should have the latest machinery to increase per acre per yield, at significant prices. The provisions should be made on easy payments in order to avoid the burden of loans for farmers. Government subsidies for modern machinery should be provided.
The irrigation system of Pakistan also needs improvement as about 67% of the land is irrigated with canals. The employment of modern techniques of irrigation can solve the problems of irrigation in Pakistan. This includes drip irrigation and sprinkle irrigation methods. By using these techniques the farmers can save a huge chunk some of money which they pay for irrigation through tube wells and tractors.

References                               



Authors:

Students of BBA 2K19 Batch, Shaheed Benazir Bhutto University, Shaheed Benazirabad.
  1. Iqra Shafqat 
  2. Shahzaib Hameed 
  3. Amjad Magsi 




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