Sustaining Economic Growth Through Value Addition in Agriculture

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1 GOVERNMENT OF SINDH AGRICULTURE DEPARTMENT Presentation on Sustaining Economic Growth Through Value Addition in Agriculture By HIDAYATULLAH CHHAJRO DIRECTORATE GENERAL AGRICULTURE EXTENSION SINDH HYDERABAD

2 Sustaining Economic Growth by value Addition in Agriculture. Agriculture is the backbone of Pakistan s economy and is an inevitable and integrate part to ensure food security in the country. About 68% of the population engaged in farming directly or indirectly through production, processing and distribution of major agriculture commodities. No body can deny the importance of agriculture in national economy, as it contributes about 21% of our GDP. Sindh is the second largest province of Pakistan on the basis of its contribution to agriculture production of the country. It produces wheat, cotton, rice, sugarcane, fruits and vegetables.

3 AGRICULTURE IN SINDH The land utilization statistics in Sindh are as under: Million Ha %age Total Reported Area Uncultivated Area Culturable waste Cultivated Area Forest Area SOURCE: Agriculture Statistics of Pakistan

4 SINDH CONTRIBUTION IN NATIONAL PRODUCTION OF MAJOR CROPS Crops %age Wheat Rice Sugarcane Cotton SOURCE: Agriculture Statistics of Pakistan

5 SINDH CONTRIBUTION IN NATIONAL PRODUCTION OF OTHER MAIN CROPS (ONION, TOMATO, CHILIES & BANANA) Crops %age Onion Tomato Chilies Banana Mango SOURCE: Agriculture Statistics of Pakistan

6 Value added agriculture entails changing a raw agricultural product into something now through packing, processing, cooling, drying, extracting or any other type of process that differentiates the product from the original raw commodity. Value added agriculture refers most generally to manufacturing processes that increase the value of a commodity through particular production processes. Adding value to agriculture products is a valuable enterprise because of the higher returns that can worth the investment, the opportunity to open new markets and extend the producer s marketing reason as well as ability to create new recognition for the farm. Value added agriculture is not worth ant it challenges to farmers. It is important to identify the value added activities that will support the necessary investment in research, processing and marketing.

7 The application of biotechnology, the engineering of food from raw products to the consumers and the restructuring of the distribution system to and from the producer all provide opportunities for adding value. These are lots of opportunities for Sindh as well as Pakistan to reach the levels of value addition already achieved in developed world. There range from building infrastructure to reduce losses to fuller utilization of animals and crops for producing valuable products. Value addition through infrastructure development includes storage and transportation facilities for crop, dairy and meat to cut spoilage. Other opportunities to add value include batter processing of sugarcane waste, rice bran, hot treatment, grading and packaging of fruits, vegetables and innovation in textile industry, Garment and hosiery industry etc.

8 Constraints Post production losses. Lack of post care, the loss of grain crops, fruit and vegetable yield. Perish ability of Fruits & Vegetables: Almost all crops related products are: - Highly perishable in nature and have a very limited shelf life. - They can not be stored for a longer period unless they are properly harvested and kept in a temperature controlled environment. - There is lack of facility of cold storages in the province that results very high post harvest losses.

9 Seasonality: Quality: Most products are not available all year round rather are subject to specific availability seasons. - Quality is a combination of agronomic practices, variety characteristics, grading, processing and finally packing. - The absence of even single factor makes the product inferior in quality and thus less acceptable in international markets.

10 Supply Chain: The supply chain is divided in three exhaustive groups as : a) Growers, b) Infrastructure providers (processing grading, packing, storage, transportation) c) Exporters. Nothing can be achieved unless stakeholders work in coordination with each other. So far, there has been no or very little coordination among the stakeholders.

11 Major constraints Lack of farmers knowledge / facilities for post harvest losses. Lack of storage / preservation, sorting, grading, waxing and packing facilities. Lack of aggressive publicity campaign in the potential export markets. Lack of export oriented professional entrepreneurship. Inadequate and inappropriate transport facilities. Weak market intelligence.

12 Suggestion for value addition Training of Farmers. Agriculture Extension Field staff may be trained to supervise and guide to farmers for proper picking / harvesting, grading & packing for export. Installation of by product industries in particular crop producing areas. Cool chain for perishable nature vegetables & fruits. Encouragement of farmers for strawberry cultivation in the province. Farmers be provide, technologies (i.e Mets, dryers etc) on subsidized rates.

13 Exporters to be encouraged to benefit the farmers. Grading, waxing and packing facilities be provided at grass root level. One window operation for export formalities be Agro Export processing zones. Use of pesticide be discouraged as the consignment may be acceptable to importing country. Temperature controlled transport facilities be arranged. International markets may be explored for export of agricultural commodities. Air Cargo service be arranged on nearest airports to the agricultural commodities producing area.

14 Steps taken by provincial Government through Agriculture Department Sindh Agriculture growth project is being launched in the province for value addition of Onion, Chilies, Dates and Rice Crops. Farmers are being Trained for Horticultural crops through Horticulture training project. To minimize the use of pesticides, farmers are being trained for IPM methodology.

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