Mechanization and Agricultural Transformation in Asia and Africa: Sharing Development Experiences:

Pakistan

Dr. S. G. AbbasDirector (Farm Mechanization)

Pakistan Agricultural Research CouncilIslamabad - PAKISTAN

• Very Brief Status of Farm Mechanization in Pakistan• Issues and Challenges• Transformation in Farm Mechanization• Solutions based on Experiences• Recommendations.

Outlines of the Presenation

Population: (June 2010) – about 180 Million Rural population: – 110.5 Million (about 63.7%) Geographical area: – 79.6 million ha. Contribution of Services Sector to GDP: – (53.3%) Contribution of Industrial Sector to GDP: – (25.2%) Contribution of Agric. to GDP: – 21.5%

Major crops – (7.0%); Minor crops – (2.4%) Livestock – (11.4%); Fishery – (0.4%); Forestry – (0.3%)

Total Size of the Agriculture Economy: Rs.3016.6 Billion Employment by Agriculture: – 45% of total labor force Cultivated area: – 21.21 million ha (70% canal irrigated) Highly diversified climate:- suit to cultivate a number of crops when

temperate ranges from 40 plus to minus 40 degrees from North to South (2,200 KM).

Agriculture Economy of Pakistan

Population --- Pakistan is 6th most populated country in the world Wheat --- 9th largest producer in the world, and 3.0% of GDP Rice --- 1.3% GDP, edge for Basmati rice Cotton --- 4th largest producer in the world, 1.6% GDP, major

export and agro-industrial crop, major source of employment in value chains, Nearly 80% total cotton production took place in Punjab

Sugarcane --- 0.7% in GDP Livestock --- Pakistan falls in the top 15 most livestock populous

countries of the world. Pakistan ranks 2nd in buffalo population; 13th in cattle population; 10th in sheep

population; 3rd in goats population Fruits --- Pakistan has comparative advantage in the production of

many dry fruits and Kinnow production in citrus family

Pakistan’s Position in the World Agriculture

Major contributor in national economy as it is: The only provider of food to growing population – rising status Supplier of raw material to industries

Cotton to ginning and textile sector; Sugarcane sugar mills; Wheat to flour mills; Other food grains to poultry and feed industriesFruits and vegetables to processing industries; Wood to furniture

manufacturers and house building Largest source of employment in the country Source of industrial development Source of foreign exchange in the country

Export of cotton, yearn, textile, rice, fruits, vegetables, processed food

Importance of Agriculture for Pakistan

Farm Households & Farm Area Composition (%)

85% farm households cultivate nearly 45% of agricultural landsPunjab and Sindh should concentrate more on marginal and small farmersKPK should concentrate more on marginal farmersMarginal, small and medium sized farms need more attention in Balochistan

Farm size Units Punjab Sindh KPK Baloch PAK.

Marginal (upto 5 ac.)

% Farms 56.0 45.9 78.5 28.4 57.6% Area 16.3 12.6 31.0 3.5 15.5

Small (5 - 12.5 ac.)

% Farms 29.4 36.6 16.1 34.3 28.1% Area 31.0 27.7 28.3 14.6 27.9

Medium (12.5-25 ac.)

% Farms 9.5 9.6 3.2 20.0 8.8% Area 21.6 16.5 12.9 17.9 19.1

Large (25-50 ac.)

% Farms 3.9 5.4 1.4 10.3 3.9% Area 16.5 17.7 11.1 17.4 16.3

Landlords (> 50 ac.)

% Farms 1.2 2.5 0.7 6.9 1.6% Area 14.6 25.6 16.7 46.5 21.2

Source: Agriculture Census, 2000

Cropping Patterns by Farm Size Groups (% Crop Area)

Crop types Marginal (upto 5 ac)

Small (5-12.5 ac)

Medium (12.5-25 ac)

Large (25-50 ac.)

Landlord(> 50 ac.)

All Pakistan

Wheat 43.3 41.2 40.5 39.0 35.6 40.4Rice 11.0 14.1 12.3 12.3 11.1 12.5Cotton 12.3 13.4 15.1 14.1 14.0 13.7Maize 8.7 3.5 1.9 1.6 1.7 3.7Sugarcane 3.0 3.9 3.7 3.7 4.9 3.8Potato 0.3 0.3 0.4 0.4 0.9 0.4Oil Seeds 0.9 1.8 2.3 2.4 2.7 1.9Pulses 1.7 3.3 6.1 9.4 11.3 5.4Fodder 12.0 11.8 10.6 9.2 6.9 10.6Vegetables 1.7 1.7 1.9 2.1 3.4 2.0Orchard 1.1 1.1 1.5 1.6 4.0 1.6

Source: Agriculture Census, 2000

Current Prices of Tractors (with Taxes)

Model Pak. Rupees Approx. US$

(Range 55HP) 744,720 7,500PW (Range 55 HP) 756,320 7,600(Range 65 HP) 828,240 8,300(Range 75 HP) 1,053,280 10,500(Range 85 HP) 1,158,840 11,6004 x 4 (Range 85 HP) 1,502,200 15,000These are existing prices for MF and New Holland (the two most popular tractors in market)

The proposed budget announced on 03 June, 2014 maintains the tax level and prices are likely to be unchanged during July 2014 to June 2015.

Agricultural MechanizationIssues and Challenges

1. Mechanization Policy and Strategy formulation (non-existent until now)

2. National Network of Agricultural Mechanization (needs revival)

3. Machinery Testing Lab. Accreditation (Needs improvement)

4. Drying & Storage (Storage capacity is an important issue)

5. Livestock Mechanization (Only poultry sector has adopted few innovative technologies. Lots of work in Livestock sector is needed)

6. Mechanized Sugarcane planting and harvesting

7. Mechanization of Pulses crops

8. Harvesting of Basmati Rice. The European 2nd hand wheat CH are being used for Rice harvesting. This causes a lot of grain damage to rice

9. Mechanized fruit and vegetable planting and picking

10. Up scaling of seed processing machinery.

11. Energy Efficient & Environment Friendly Technologies (Introduction of Solar power for Agricultural purposes need to be encouraged)

12. Topography (laser land leveling can play double benefits. (a) Increased water efficiency (2) Reclaim land for agricultural purposes

Agricultural MechanizationIssues and Challenges

Transformation in Farm Mechanization

Agricultural and Biological Engineering Institute(ABEI)

Former

Farm Machinery Institute(FMI)

1985: Reaper-windrower: 35,000 units 1995: Zero-till Drill: 7,000 units

2002: Wheat Straw Chopper: 5,000 units 2002: Paddy Thresher: 6,000 units

Technologies Commercialized

Fertilizer Band Placement Drill 2009 onward: 8,000 (Punjab Govt.)

Technologies Commercialized

Mobile Flat-bed Dryer Olive Oil Extraction Unit

Milking Machine for Buffaloes Mango Picking Machine

Technologies Commercialized

Solar-cum-Gas Fired Dates Dryer Solar House Dates Dryer

Mobile Seed Processing Unit Seeder For Combined Harvested Paddy Fields

Technologies in Progress

Solutions based on experiences

Experiences

Experiences (Government)Government of Punjab (1980s):

• Rural Supply Cooperative Corporation’s (RSCC) established Farm Services Centers (FSC) with facilities such as:

• Tractor sale and service• Tractor and implements repair facilities• Tractor rental facilities (within District)

• Lessons learnt:• Over-staffing / under-staffing at certain locations (due to

Government’s job)• Fix number of tractors / equipments (irrespective of number of

farmers at certain location)• Fixed office timings (as that of Government) 8 AM to 2 PM with

Sunday OFF• Lesser flexibility of prices, rental charges, etc.• Non-professional attitude

Experiences (Private – Combine Harvesting)

Started from Punjab in 1987: With the financial back-up support from Agricultural Development Bank (ADBP)

Contractors imported new / old combine harvesters from Italy, Germany, and Holland with a minimum of FIVE Combine Harvesters (CH) in their stock:

• CH started working from South of Punjab where wheat harvesting starts a month earlier than in the North.

• Engaged staff from rural youth to operate these CH.• After-sale service is usually provided by the CH after-sale service staff• In most cases advance booking of CH is done to operate at certain

locations.• Within 2-3 years after introducing CH in private sector above 50% of the

Punjab wheat crop was being Combine Harvested.• Smart contractors used the same combine for Rice harvesting, but

unfortunately WITHOUT changing the threshing mechanism / sieves, tyres, etc. (that results in relatively more broken rice )

Lessons learnt:• Formal training institutes are lacking to train CH operators, repair and

maintenance• Dealers are making sky high profits on spare-parts

Experience (During an assignment in Sudan 2011)

Government pools large number of farmer’s land and contracts it out for multinationals / national firms for farming.

• The firms usually purchase larger tractors / farm machinery and operates from a central place to cultivate the seasonal crops.

• The large capacity tractors and farm equipment carry lots of after-sale service, repair and maintenance problems.

• The firms have tendency to leave and the expensive equipment / could transform into junk as no local farmer can afford to buy or operate these used machinery.

• Lessons learnt:• Lesser local farmer’s interest as usually the large firms hire

their own technical and non technical staff• Too expensive for developing nations

Recommendations

Developing Nations and their Government’s should support in establishing “Contract Farming” through financial support to the younger generation: • By extending liberal credit line facilities to establish their own businesses

(Details are available on http://www.parc.gov.pk/index.php/en/2014-01-22-03-26-43

• Encourage Tractor / Matching Farm Equipment Contractors:• Encourage Combine Harvester Contractors• Encourage Laser-land Leveling Contractors• Introduce Full Package of “Transfer of Technology (ToT)” e.g. Rice

Transplantation technology – Nursery, Transplanting, Weeding, Harvesting

• Legislative Cover on Farm Equipment Rental Service • Establish Farm Equipment Operational Training Institutes (with the help

of Private Sector)

Thank you