ISLAMABAD: The World Bank has approved $300 million loan to
modernise agriculture in Punjab, create better prospects for farmers and
ensure better quality and safer food at lower prices to consumers.
The
World Bank-supported ‘Strengthening Markets for Agriculture and Rural
Transformation’ (Smart) project will support the much-needed reforms for
agriculture and livestock productivity, improve agriculture’s
resilience to climate change, and foster agribusiness in Punjab over the
next five years. It will also reduce inequality and expand
opportunities for women and youth.
The project, approved
on Friday, is expected to shift Rs55 billion a year towards ‘Smart’
input subsidies for small farmers, agricultural research, farmers’
training, support for high-value and climate-smart agriculture.
Additionally, Smart will help improve the sustainability of agricultural
production by strengthening the management of irrigation water, and
help tackle ground water depletion.
The resources
provided by the World Bank will be part of a larger programme by the
Punjab government that aims to better harness the enormous potential for
farming in the province, with its fertile soils and extensive
irrigation system.
It addresses the paradox that while Punjab’s farmers earn too little, people pay high prices for low quality food.
This
situation is largely the result of farm policies that have hardly
changed in the last fifty years. These include extensive insufficient
subsidies and government spending that does not provide widespread
benefits and results in wasteful water use.
“Agriculture
in Punjab has great potential but requires a paradigm shift to unlock
growth opportunities,” said World Bank Country Director for Pakistan,
Illango Patchamuthu.
“The Punjab government is
determined to help farmers grow high-value crops and significantly
increase their incomes. The project is estimated to create 350,000 jobs
and lift 1.7m people from poverty. The bank stands ready to support the
provincial government in this exciting endeavour.”
The
project is expected to contribute to increased on-farm productivity and
value of agriculture and livestock; increased value-addition and
competitiveness in agriculture and livestock; and enhanced resilience of
smallholder farmers to climate change and natural disasters.
Growth
in the agriculture sector in Punjab has been poor for some years and
this has had a detrimental effect on the wellbeing of agricultural
communities.
Communities dependent on agriculture have
traditionally included deprived members of society, including landless
farmers, small tenant farmers, and groups who rely on seasonal
agricultural labour.
The project will help increase
productivity in the sector, and thereby support household incomes and
livelihoods in rural communities.
The social benefits
associated with the project include improved economic status of farming
communities, including livestock producers, mostly women and cheaper
wheat and wheat flour.
The project will also help
enhance farmers’ resilience through provision of affordable agricultural
insurance products and increased investments for climate smart
agriculture; a more equitable distribution of water; development and
implementation of a participatory citizens engagement strategy for
farmers; and capacity building of key government departments, farmers,
and agribusiness entrepreneurs to ensure that the objectives of the
programme are met.
“Key reforms supported by the project
include transition towards high value agriculture, which will
substantially raise farm incomes and employment in Punjab,” said Senior
Agriculture Economist at the World Bank, Hans Jansen.
“This
will be done by shifting resources from inadequate subsidies towards
supporting farmers to produce higher value products such as vegetables,
fruits, pulses, oilseeds, milk and meat, whose demand is growing many
times faster than lower value crops such as wheat,” he added.
Farm drones allowed
Meanwhile, aiming to enhance agricultural productivity in
the province, Punjab government has allowed the use of drones for
farming activities.
Drone or unmanned air vehicle
consist of a small unmanned aircraft. After the success of this
technology it is ready to astound the agriculture sector, a spokesperson
of the provincial agricultural department said on Saturday.
Sharing
details, the spokesperson said Punjab Chief Minister Shahbaz Sharif
allowed the use of drones since these can be used in the applications of
pesticides on crops, monitoring of weeds, pests and nutritional
deficiencies, area, water resources, as well as research and
development.
The agricultural department has informed
farmers and stakeholders to get no objection certificate from the
agriculture (extension) department for the use of drones for
agricultural purposes.
In arriving at a decision, the
protocols about the security of sensitive installations and
establishments would be given due consideration. Police personnel would
be deputed to monitor the operation of drones at the time of flying
activity.
The Food and Agriculture Organisation (FAO) of
the United Nations has already encouraged countries to initiate the use
of technology for disaster risk reduction in the agriculture sector.
