Of Pakistans food producing sector

What does Pakistan want from its food producing sector? Some 20 years ago, answering the question would have been relatively simple.
But changing times, a pressing need to look after issues such as rural development, and ensuring sustainability in an environment where resources are rapidly depleting, have all distorted the previously simple equation. Ensuring cheap food for the masses just is not as simple -or even enough- anymore.
Add greater vulnerabilities such as dysfunctional and unpredictable climate conditions to the mix and the answer to the goals of agriculture in the country, becomes even more elusive.
Formerly classified as a country with a chronic food deficit, a few of the major domestic food crops have rebounded within the last five years to help the nation achieve a basic self sufficiency of sorts.
From having to import pulses in 2008, the performance of the countrys food producing sector, for the first time in decades; showed signs of strengthening with successive harvests of bumper wheat crops in 2010 and 2011.
However, regrettably, the growth has remained exclusive to cash crops including wheat, sugar cane and cotton, all of which have also been aided by a very hefty dose of government support during the course of these years.
Access to credit has also helped the cause, the truth remains that the link between government interventions and the small growth in the countrys agri-sector is too substantive to ignore.
Pinpointing a 3.1 percent growth in the agricultural sector during FY12, SBPs Annual Report on the aggregate supply in the countrys economy also highlights the same factor, citing the growth dynamics to be highly unsustainable due to their increasing dependence on outside interventions.
While it can be argued that the lack of proper market mechanisms have merited that the government play out its role to protect both the grower and the end user by setting up benchmark prices and procurement of key crops; ensuring adequate supply of food in this manner comes at a great economic cost to the exchequer.
Additionally, government interventions remain short sighted, with the main focus residing on controlling prices and quantities instead of expanding long-term production horizons.
The case for both cotton and wheat supports this claim. In the 2012/13 season, the country had officially been expected to produce some 14.6 million bales. Not only was the target missed but downward revisions have production estimates currently hovering between 12 and 13 million bales.
With similar yields recorded 20 years ago, the questions about the efficiency of these subsidies need not even be voiced. Likewise, domestic wheat production presents a similar situation. Despite taking up support prices to Rs 1,200 per maund, experts say that there are clear indications that the 2012/13 target for wheat production is unlikely to be met.
Simply put, the handouts in the form of support price are a poor substitute at best. These funds may be better utilised if allocated to research and development and towards improving other agri-infrastructure.