Corporate Agriculture Farming - Pak's economic bet

 

Corporate Agriculture Farming - Pak's economic bet

The agriculture sector is of vital social, political, and economic importance for Pakistan. On the economic side, it contributes 21% of the GDP and employs 44% of the labor force. A host of economic activities in the services and industrial sector are also based on the contribution of agriculture.

Pakistan needs to catch up with the performance of the agriculture sector around the world and its neighbors. In this regard, Corporate Agriculture Farming (CAF) can provide access to financing and investment, which is often lacking for small and medium-sized farmers in Pakistan. It is an agricultural operation that involves production of food and food-related products on an exceptionally large scale.

In Pakistan, there has been a growing interest in corporate farming as a means of boosting agricultural productivity increasing exports, and attracting investment. The present condition of Pakistan's agriculture indicates that the prospects of corporate farming in Pakistan are bright subject to managerial skills of the companies and their relationship with the local community/small farmers. 

Corporate agricultural farming is believed to have tremendous promise for attracting foreign investment, as many countries try to achieve food security. The South Koreans, Chinese, Saudis, Japanese and others have acquired farmlands in Laos, Cambodia, Madagascar, Burma, Uganda, Ethiopia, Brazil and other Central Asian countries in recent years. Large Indian companies like Tata and Reliance are also said to have invested heavily in this area.

Pakistan has a total geographical area of 79.6 million hectares. Out of these 9.1 million hectares of land is a culturable waste. Culturable waste is that cultivated farm area that is fit for cultivation but was not cropped. The culturable waste area is almost half of the cultivated area. Hence the development of this area is not only better for investment but also has the potential to contribute to an increase in agricultural production.

China is opening up its agriculture industry to corporate farming, a move that could have wide economic and political implications. The plan comes after authorities announced earlier this year that they want to relocate 100 million farmers, about 12% of the rural population, into smaller cities. It is a good example of how corporate agricultural farming can benefit a country.

Chinese exports of agri-food commodities amounted to USD 64.83 billion in 2019. It increased by 85% in comparison to 2005. The share of China in global agri-food exports was equal to 4.1%. The volume of exports amounted to 45.13 million tons and increased by 34% in comparison to 2005. To replicate China's success in Pakistan, the government can implement policies to attract investment from corporations interested in large-scale farming. This could include tax incentives and protection of property rights. 

China's Mu Us Desert is a glaring example which covers an area of 42,200 km sq out of which 93% has been successfully converted into agriculture land.

Israel, despite 50% of its land occupied by desert, has more than doubled its agriculture land over the years to million acres. 

UAE is using Norwegian technology of mixing nano-clay with water & binding them to sand particles to condition desert soil for growing food in deserts. State has increased agriculture land to 470,000 hectares (1,616,370 acres) from 2,530 hectares (6,250 acres) in 1971. 

It has immense potential in Pakistan where 80% of land is arid or semi-arid. Various organizations in Pakistan have made successful endeavors to increase agriculture land in Pakistan. Self sustaining projects of military have resulted in conversion of more than 300,000 acres with Rs 4.3 billion worth of land development enabling 14,920 direct and 49,600 in direct jobs. The cultivated land is handed over to Shuhada families and ex servicemen with meritorious service.

Rs 19.38 million have also been spent on community welfare which has benefitted around 48,000 individuals in rural areas of Balochistan, Punjab and Sindh.

International Fund for Agriculture Development (IFAD) that works under UN has also enabled agricultural land conversion in various areas around Pakistan including GB. 

Under 26 programs for Pakistan the body has provided $604.8 million funds for agricultural development, directly benefiting 2,080,400 rural households. Similar projects have been undertaken by organizations like WWF-Pakistan and FAO among others. 

At individual level, farmers like Hassan Abdullah’s agricultural development in Cholistan desert, Obaid ur Rehman’s in Mari, Mianwali; Punjab and Dr Shaukat Ali Sheikh in Hyderabad etc are marked as success stories. 

Since 1981, 2.3 Million farmers have benefited from capacity building initiatives of Fauji Fertilizer. Food Security and Agriculture center of excellence has provided Rs 17 million low cost loans to farmers as a welfare measure which is benefitting 8600 farmers. 

Pakistan has witnessed reduction in average agricultural land size from 5.3 hectares in 1970s to 2.6 hectares, with more than 90% land held in swatches smaller than 12 acres currently. A similar decline in agricultural growth from 4% to 2% annually and the agricultural work force from 51.15% to 38.49% is also witnessed. Due to Global increase in food insecurity, many countries are adopting ways to exploit the untapped potential of barren land by increasingly converting it to agriculture land. Pakistan must replicate the same.