PESHAWAR: Federation of Pakistan Chambers of Commerce and Industry Monday demanded of the Khyber Pakhtunkhwa government to formulate a new policy framework for the development of its agriculture sector.
Chairman FPCCI Standing Committee Ahmad Jawad in a meeting with group of farmers said that small landholding is one of the major hurdles in achieving higher yield growth.
Over 80pc of the landholdings are below five acres. "In China and South Korea, the average size of landholding is even lower than it, but the productivity of major crops is much higher." This is because access to input-institutions, knowledge, and technology favor small farmers in those countries.
Given the agricultural landscape of the province nearly 80pc of KP population live in rural and peri-urban areas, whereas about 85pc directly or indirectly earn their livelihood from farming. Agriculture contributes a mere 14pc to the provincial income far below its potential.
Farmers are locked in production of low value crops, the irrigation network is not expanding and there is a marked decline in land use intensity Contrary to this, institutional arrangements favor large and politically influential farmers in KP. Small growers do not have access to inputs and resources to participate in high value-added markets.
While large and assured markets exist for the traditional crops like wheat but small farmers are big losers owing to fluctuating prices. Generally, the production is supply- driven and not demand-oriented.
Out of the total cultivable land of 2.96 million hectare in KP, the area under cultivation is only 1.80 million hectare. The remaining 1.16 million can be used for farming with marginal investment and something needs to be done in this respect.
But the trouble is that both land use and cropping intensities have declined over time.
The imbalance and unscientific application of fertilizer has not only decreased its efficiency, but also degraded land fertility. Similarly the seed industry in the province lacks even the so much questioned national standard.
Though there are some areas which are highly suitable for seed production, nothing is being done.
Ahmad Jawad further stated that market access is another challenge. Farmers with scattered small holdings are unable to have direct access to markets. The average distance for a farmer to reach the nearest market is 10 miles.
This makes it difficult for growers to have accurate information about consumer prices and the middleman benefits at the cost of farmers and consumers alike.
KP also lacks a proper system for storage of agriculture produce which results in sharp seasonal fluctuations in food prices.
Agriculture R&D in KP also faces huge challenges such as poor research planning, prioritization and poor linkages between farm and research bodies.
KP needs to improve agriculture performance by taking several steps including diversifying into high value crops, developing horticulture specialization, managing irrigation, promoting certified seed nurseries and strengthening agriculture research.
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