“PIDEs Approach to Revamp Agricultural Markets: An Overview” | (कृषि बाज़ारों में सुधार के लिए पीआईडीई का दृष्टिकोण – राय )

Main Points In Hindi (मुख्य बातें – हिंदी में)

पाकिस्तान के कृषि क्षेत्र की मुख्य चुनौतियों और सुधारात्मक उपायों के बारे में कुछ प्रमुख बिंदु निम्नलिखित हैं:

1. कम उत्पादकता और अनावश्यक सब्सिडी: पाकिस्तान को उच्चतम वैश्विक उत्पादकता के बावजूद, इसकी कृषि उत्पादकता अंतरराष्ट्रीय औसत से काफी कम है। अनावश्यक और खराब लक्षित सब्सिडी, बाजार में एकाधिकार, और अत्यधिक विनियमन जैसे कारकों के चलते कृषि क्षेत्र में बाधाएं हैं।

2. जल प्रबंधन और लागत: पानी की कम कीमतों के कारण किसान जल बचाने वाली तकनीकों में निवेश नहीं कर पा रहे हैं, जिससे जल संकट गंभीर होता जा रहा है। PIDE जल मूल्य निर्धारण में सुधार की आवश्यकता पर जोर देते हुए, कुशल जल उपयोग को प्रोत्साहित करने के लिए व्यापक सुधार की सिफारिश करता है।

3. भूमि समेकन और वित्तीय सुविधाएँ: छोटे किसानों के लिए औपचारिक वित्तीय संस्थानों से ऋण को अधिक सुलभ बनाना आवश्यक है, ताकि वे अनौपचारिक ऋणदाताओं पर निर्भरता कम कर सकें। इसके साथ ही, कृषि भूमि का समेकन बाजार तंत्र के माध्यम से होना चाहिए, जिससे उत्पादन लागत को कम किया जा सके।

4. कृषि बाजारों की दक्षता में सुधार: PIDE ने सरकारी मूल्य निर्धारण में हस्तक्षेप को समाप्त करने, कृषि बाजारों में प्रतिस्पर्धा को बढ़ावा देने, और उत्पादों के फसल के बाद नुकसान को कम करने के लिए निजी क्षेत्र के निवेश को प्रोत्साहित करने की सिफारिश की है।

5. नवाचार और प्रतिस्पर्धा: PIDE का सुझाव है कि कृषि क्षेत्र की उत्पादकता बढ़ाने के लिए निजी क्षेत्र की भागीदारी को बढ़ावा देना चाहिए, जिसमें बीज बाजार और उसके विपणन का पुनर्गठन शामिल है। उच्च उत्पादकता और खाद्य सुरक्षा के लिए साक्ष्य-आधारित समाधानों को लागू करने की आवश्यकता पर जोर दिया गया है।

Main Points In English(मुख्य बातें – अंग्रेज़ी में)

Here are the main points from the provided text about the agricultural sector in Pakistan:

- Advertisement -

1. Challenges in Productivity: Despite being among the top ten global producers of various agricultural products, Pakistan’s per-acre yield is significantly below the international average. The sector faces multiple challenges, including low productivity, poor market structures, and excessive regulation.

2. Need for Evidence-Based Solutions: The Pakistan Institute of Development Economics (PIDE) is focusing on identifying barriers and proposing evidence-based solutions to strengthen the agricultural sector and improve efficiency in agricultural markets.

3. Subsidy Issues: Subsidies for inputs like fertilizers have proven to be ineffective, providing minimal benefit to consumers while straining government finances. PIDE advocates for a reassessment of these subsidies for better allocation of resources toward research and development.

4. Water Management and Pricing: The absence of an efficient water pricing mechanism has led to wastage of water resources. PIDE suggests implementing reforms in water pricing to encourage conservation and efficient use of water in agriculture.

5. Market Reforms Required: PIDE recommends several reforms, including deregulating pricing for perishables, modernizing land transfer rules to reduce corruption, and promoting private sector investment in storage facilities. These changes aim to enhance productivity and competitiveness within the agricultural sector.

By implementing these solutions, Pakistan could potentially achieve significant improvements in agricultural productivity, profitability, and food security.

Complete News In Hindi(पूरी खबर – हिंदी में)

Complete News In English(पूरी खबर – अंग्रेज़ी में)

- Advertisement -

The agricultural sector is the backbone of Pakistan’s economy, but it faces numerous challenges that hinder its productivity, profitability, long-term sustainable development, and food security. Although Pakistan is one of the top ten global producers of many agricultural products, its yield per acre remains considerably below the international average. Despite various initiatives and efforts, the agricultural sector has failed to achieve significant crop yields close to international standards.

The Pakistan Institute of Development Economics (PIDE) has taken the initiative to identify obstacles and propose solid, evidence-based solutions to revitalize the agricultural sector.

Some of the major challenges include low productivity, poorly targeted subsidies in input and output markets, the presence of monopolies, excessive regulation, and inappropriate pricing leading to the degradation of natural resources.

In addition to documenting these issues, PIDE focuses on empirical, evidence-based research to propose economically viable solutions aimed at enhancing market efficiency in agriculture.

The proposed reforms aim to create more efficient and competitive input-output markets by reducing bureaucratic barriers, regulating markets for seeds, fertilizers, wheat, fruits, and vegetables, eliminating government price interventions, and addressing monopolistic practices, particularly in output sectors.

Subsidizing fertilizers has long been viewed as a way to make agricultural inputs more affordable for farmers. However, PIDE’s research shows that the benefits of these subsidies are minimal, resulting in negligible reductions in consumer prices.

For instance, a family consuming wheat, rice, and sugar saves only 893 rupees annually against a subsidy of 200 billion rupees. This inefficient use of taxpayers’ money calls for a reevaluation of fertilizer subsidies, suggesting better allocation of funds to areas like research and development.

Due to low water prices, farmers have no incentive to invest in water-saving technologies (like drip irrigation and sprinklers), pushing the country towards a severe water crisis. Implementing a water pricing mechanism requires comprehensive reforms, including restructuring charges to discourage overuse or introducing a marginal water pricing system.

Due to the lack of economic water pricing, estimated losses range from 678 billion to 899 billion rupees annually, which is staggering.

In Pakistan, small farmers often rely on informal lenders known as “Arthias,” who provide flexible but high-interest loans. While these intermediaries provide critical financial support, they can exploit farmers with exorbitant interest rates. PIDE suggests that formal financial institutions adopt more flexible loan terms used by these lenders, making loans more accessible to farmers and reducing their reliance on informal sources.

Agricultural land consolidation (ALC) can help by combining small plots into larger ones, allowing for mechanization and better resource management. However, this consolidation should occur through market forces rather than legislation. Currently, Pakistan’s agricultural land market is inefficient and plagued by outdated regulations and corrupt practices.

Land transfer between buyers and sellers is a lengthy and complex process that can take several months. To address these issues, PIDE recommends modernizing land transfer rules to reduce corruption and streamline transactions, decreasing transaction fees, eliminating DC rates, and computerizing land records. Clearly, consolidation is essential for cutting production costs and increasing productivity.

The minimum support price (MSP) for crops like wheat has led to inefficient crop patterns and misallocation of resources. PIDE has repeatedly called for the elimination of these price supports, arguing that they fail to achieve their intended goals of stabilizing consumer prices. Instead, MSP often benefits intermediaries and large mills at the expense of both farmers and consumers.

In 2023 alone, the government spent 168 billion rupees on wheat purchases, with an institutional budget of 260 billion rupees, and the allocation for competitive crops resulted in a benefit of just about 11 billion rupees. The cumulative burden from circular debt has escalated to 907 billion rupees over the years, indicating that the current MSP implementation is not sustainable.

PIDE has studied issues in the sugar industry, including monopolistic practices and inadequate regulatory oversight, which contribute to market distortions and rising prices. For example, the sugar crisis of 2019-2020 was driven by export approvals despite a decline in production, leading to increased domestic prices. PIDE recommends deregulating the sugar market by removing barriers for new mills and lowering trade restrictions to promote competition.

The Deputy Commissioner’s Office sets prices for fruits and vegetables, but these often do not reflect market realities, leading to inefficiencies and increased costs for retailers. PIDE advocates removing government intervention in the pricing of perishables, allowing market forces to determine prices based on supply and demand.

Due to inadequate storage infrastructure, Pakistan faces significant post-harvest losses, especially for grains, fruits, and vegetables. Current storage facilities lack proper ventilation, temperature control, and pest management, resulting in annual losses of about 315 billion rupees. PIDE calls for greater private sector participation in building modern storage facilities.

By lifting government restrictions on private wheat purchasing and encouraging investment in cold storage, post-harvest losses can be reduced, enabling farmers to store their crops and sell them when prices are more favorable. Perhaps the most crucial recommendation from PIDE is to redirect resources from inefficient subsidies and price supports towards research and development (R&D).

If Pakistan’s agricultural sector can enhance its average production to the level of its progressive farmers, it could add 1,722 billion rupees annually. A key element in achieving this goal is the involvement of the private sector in innovation and high-yield crop development through the reorganization of seed markets and marketing.

PIDE advocates transitioning from the current centrally managed seed certification system to a free-market mechanism. There is a need to eliminate the public sector’s role in seed production businesses and price regulation. Intellectual property rights should be established in a more transparent and equitable manner.

The agricultural sector in Pakistan stands at a crossroads. By implementing these evidence-based solutions, Pakistan can pave the way for a more prosperous and sustainable future, achieving higher productivity, profitability, and food security.

Copyright Business Recorder, 2024

Source link