Commercially scalable is sustainable

November 17, 2024

Farming must become profitable for the farmers

Commercially scalable is sustainable


P

akistan has become the 15th most water-stressed country in the world. It is predicted to become water scarce by 2035. Pakistan is also an agrarian economy. Agriculture contributes about 19.2 per cent to the GDP and employs 38.5 per cent of the national labour force. Water is life to the fields and while work on canal networks and construction of dams and reservoirs is integral, the focus needs to be on the bigger picture. For now, Pakistan’s fields are ironically flooded and thirsty; sown and exhausted; and above all dependent on farmers who are unaware, under-skilled and lack access to finance and technology.

Pakistan has a total land area of 79.6 million hectares, of which about 22.1 million hectares is cultivated. The major crops include wheat, cotton, rice and sugarcane. Together these account for 33 per cent of the value added in agriculture and 7.1 per cent of the GDP. A succinct capture illustrates a gradual growth in cultivated land, an increase from 23.51 per cent in 1960 to 27.76 per cent in 2020 only, and further slowing of growth rate in recent decades. From 2000 to 2020, it increased by only 0.0085 points per year. The population grew from 45 million in 1960 to over 220 million in 2020, creating demand for more farmland. However, Pakistan may be reaching its limit for expanding arable land. This highlights the need to improve productivity, implement sustainable land management and develop commercially scalable farming business models.

Solutions require a business approach that begins with an analysis of challenges and strengths. While strengths include climate with a seasonal mix of humid and dry heat, rain cycles, river networks, canal systems and generations of farmers who know the land, the challenges outweigh them in a modern paradigm.

Severe water scarcity, with per capita availability plummeting from 5,600 cubic metres in 1947 to 1,017 in 2021, is compounded by soil degradation affecting 7.5 million hectares. Obsolete farming practices and limited mechanisation (only four per cent of farms fully mechanised compared to 45 per cent in India and 57 per cent in China) further constrain productivity. Small farmers, comprising 90 per cent of the farming community, struggle with limited access to formal credit, often relying on exploitative lenders. Inadequate storage and transportation lead to 30-40 per cent losses in fruits and vegetables. Climate change vulnerability exacerbates these issues, with Pakistan ranking 8th (globally) in climate risk. Poverty affects 24 per cent of the population, in rural areas, perpetuating a cycle of low productivity. Gender bias is also prevalent, with women constituting 72.7 per cent of the agricultural workforce but facing discrimination and lack of recognition.

Pakistan’s agricultural sector can be revolutionised through an innovative, integrated model that combines on-ground support with digital solutions. At its core, this model would feature a vertical value chain ensuring seamless farm-to-market integration, cutting-edge digital yield monitoring weather forecasting services and a resolute agronomy team providing expert advice. The backbone of this system would be a network of strategically located local centres in key agricultural areas, each supported by a team of agents who extend the services. These centres and agents introduce modern farming practices, offer crop analysis, facilitate input supply and provide direct crop procurement services.

The system will also include community shops for collaborative retail, digital financial services to enhance financial inclusion and logistic support for efficient crop transportation. Micro-financing services, tailored to farmers’ needs, will be offered through partnerships with banks.

Pakistan’s agricultural sector can be revolutionised through an innovative, integrated model that combines on-ground support with digital solutions. 

The model will continually evolve through collaborations with agricultural technology companies and digital platforms. By addressing challenges ranging from limited access to resources and financial services to post-harvest losses and market linkages, this integrated system will have the potential to significantly boost agricultural productivity, improve farmers’ professional and personal growth and launch rural economic development across Pakistan.

HBL’s Zarai model, consisting of Dera and its affiliated retail shops, Zarai Dost, presents a comprehensive solution that should be considered a national blueprint. The model integrates water conservation and its efficient use as part of its agronomy services, addressing crucial challenges in agriculture. The two-tier structure of Zarai Dera and Zarai Dost covers more than 40 kilometres of a command area. With digitally empowered agronomy teams, it monitors crop growth, implements water conservation techniques, utilises field mapping that supports in efficient crop husbandry management through remote sensing tools. This well-rounded approach combines multiple resolutions in one package, providing a model that boosts productivity, ensures sustainability and builds resilience against climate change.

This model, however, must be complimented by a regulatory framework for key strategies like modern irrigation techniques, water storage infrastructure and rainwater harvesting. Soil health improvement via crop rotation, organic farming, better drainage systems and the use of soil amendments like gypsum to combat salinity must be made mandatory. To modernise farming practices, investment in agricultural research, farmer field schools and precision agriculture using GPS and remote sensing is necessary. Mechanisation efforts suggest providing subsidies or low-interest loans for farm machinery, establishing community-based mechanisation centres for small farmers, and most immediately availability on rental basis, so that groups of farmers can rent modern machines and work as ‘communes’ to simultaneously benefit from expediency of operations and efficiency of output. Expanding financial inclusion through formal credit facilities, digital financial services and regulation of arthis (agents) must be evaluated and perfected in the interest of the farmer. Enhancing post-harvest infrastructure will need investments in cold storage and farm-to-market roads.

Climate change is an enduring reality, making resilient infrastructure essential, alongside climate-resilient crops, early warning systems and sustainable practices like agro-forestry. On-ground support and knowledge sharing from visiting experts, has proven to be of immense help in villages supported by the Heritage Foundation Pakistan. This mechanism has created a self-sustaining model that fosters community engagement and resilience.

Education and awareness can be strengthened by improving agricultural extension services, developing agriculturally enriched curricula for high schools and colleges, incentivising agricultural education at higher levels, focusing on technology to strengthen the farmer and digitisation to disseminate information.

Thomas Jefferson stated that “Agriculture is our wisest pursuit, because it will in the end contribute most to real wealth, good morals and happiness.” Farming must become profitable for the farmer. Only then can we strengthen the national economy at a competitive pace and global scale.


The author is an educationist, writer and a corporate host. She can be reached at Shahatariq67@gmail.com

Commercially scalable is sustainable