Bumper Crops And Soaring Credit Drive Pakistan's Tractor Sales Boom

First seven months of the current fiscal year have seen tractor sales soar 45% to 38,173 units, according to data of the Pakistan Automotive Manufacturers Association. It is driven by a combination of soaring credit availability and bumper harvests of Pakistan's top three crops by area: wheat, cotton and rice.

Tractor Sales:

First seven months of the current fiscal year have seen tractor sales soar 45% to 38,173 units, according to data of the Pakistan Automotive Manufacturers Association. This is good news for Pakistan's tractor industry that has been in slump for several years as the agriculture output was stagnant.

Pakistani farmers use tractors for a variety of usual tasks ranging from tilling and planting to harvest and transport. Tractor owners recover their costs from more efficiently working their farms and renting out equipment when they are not in their own use.

Agriculture Credit Growth:

Pakistani banks provided Rs 500 billion (nearly $5 billion) worth of agricultural credit during the first seven months, July-January period, of current fiscal year.  It represents a 45% jump from the same period last year, according to media reports.

According to State Bank of Pakistan (SBP), commercial banks, specialized banks, Islamic banks, domestic private banks, microfinance banks and other microfinance institutions have together disbursed Rs 499.645 billion during the period under review, up Rs. 351.358 billion in the same period of last fiscal year.

Top Three Crops:

Wheat output is expected to be near all time high of 26 million tons. Cotton production is forecast to exceed 11.5 million bales, up from 10.6 million bales last year.

Source: FAO via Kleffmann Group

Pakistan rice exports have reached 2.59 million tons worth US$ 1.224 billion in the first 7 months, up from 2.27 million tons worth US$.961 Million last year,  recording growth of 27% in value and 14% quantity.

Pakistan ranks among the world's biggest producers of a variety of crops including wheat, cotton, rice, corn, sugarcane, onions, chickpeas and fruits, according to Food and Agriculture Organization Stats (FAOSTAT).

Crops vs Livestock:

Livestock farming contributes 53% while crops make up about 42% of Pakistan's agriculture output. The rest comes from fishing and forestry.

Pakistani livestock sector has growing much faster than the crop sector and more recent estimates show its contribution has increased to 56.3% of the value of agriculture and nearly 11% to the agricultural gross domestic product (AGDP). It's driven by growing domestic demand for meat and dairy products.

Crop Yields:

Pakistan's crop yields are comparable to India, among the lowest in the world, according to FAO (Food and Agriculture Organization) data.

Source: FAO via Kleffmann Group

World's highest crop yields are seen in Europe while the lowest are in Africa.

Maize, Potato, Rice and Wheat Yields in Hectograms/Hectare. Source:...

Value Added Agriculture: 

Livestock revolution enabled Pakistan to significantly raise agriculture productivity and rural incomes in 1980s. Economic activity in dairy, meat and poultry sectors now accounts for just over 50% of the nation's total agricultural output. The result is that per capita value added to agriculture in Pakistan is almost twice as much as that in Bangladesh and India.

Although Pakistan's value added to agriculture is high for its region, it has been essentially flat since mid-1990s. It also lags significantly behind developing countries in other parts of the world. For example, per capita worker productivity in North Africa and the Middle East is more than twice that of Pakistan while in Latin America it is more than three times higher.

CPEC Long Term Plan:

Beyond the current phase of China Pakistan Economic Corridor (CPEC) focus on energy and infrastructure projects, there is a long term plan that deals with modernizing Pakistan's agriculture. CPEC LTP outlines a more comprehensive effort involving the entire supply chain from agriculture inputs like  seeds, fertilizer, credit and pesticides to logistics such as storage and transportation systems.

Summary:

Pakistan ranks among the world's top producers of a number of major crops including wheat, cotton and rice. Soaring tractor sales are being driven by a combination of  rising credit availability and bumper harvests of major crops in the country this year. But the farm productivity and yields are still among the lowest in the world. CPEC LTP (long term plan) offers hope of significant improvements in agriculture sector to reach its full potential.

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Views: 1163

Comment by Riaz Haq on September 5, 2018 at 10:33pm

PAKISTAN COUNTRY AREA
79,610
(1000 ha)
Official data, 2014

LAND AREA
77,088
(1000 ha)
FAO estimate, 2014

AGRICULTURAL AREA
36,252
(1000 ha)
FAO estimate, 2014

FOREST
1,515
(1000 ha)
FAO estimate, 2014


http://www.fao.org/countryprofiles/index/en/?iso3=PAK

INDIA COUNTRY AREA
328,725.9
(1000 ha)
FAO estimate, 2014

LAND AREA
297,319
(1000 ha)
FAO estimate, 2014

AGRICULTURAL AREA
179,721
(1000 ha)
FAO estimate, 2014

FOREST
70,503.6
(1000 ha)
FAO estimate, 2014

http://www.fao.org/countryprofiles/index/en/?iso3=IND

Comment by Riaz Haq on October 4, 2018 at 9:42pm

Why #farmers are key to the #Indian #elections. Rising #fuel prices and #fertilizer costs have sparked widespread protests from #agricultural workers. #India #Modi #BJP #agriculture http://www.theweek.co.uk/96903/why-farmers-are-key-to-the-indian-el...

Diesel prices have risen by 26% in India this year, making it significantly more costly for the nation’s 263 million farmers to work fields and harvest and transport crops.

Alongside rising petrol costs, prices of key fertilisers such as potash and phosphate have jumped nearly 15% and 17% respectively over the past year, “as companies pass on the rise in global prices and the impact of the weak rupee to farmers”, says Reuters.

India is the world’s second-biggest producer of staples including rice and wheat, but “imports all its potash needs and relies on foreign supplies for nearly 90% of the phosphate it uses”, adds the news site.

“It’s a double whammy for farmers, who have to bear the brunt of lower crop prices and higher input costs,” says Devinder Sharma, an independent food and trade policy analyst.

Earlier this week, thousands of protesters under the banner of the Bhartiya Kisan Union (Indian Farmers’ Union) marched to the capital, New Delhi, from adjoining states.

Union member Dharmendra Malik told Al Jazeera that police fired “tear gas and plastic bullets at unarmed farmers”, and turned water cannons on them, in order to prevent the demonstrators from entering the city. He said about 50 people had been injured, a claim that the police have denied.

With elections due to be held in April or May next year, “unions representing farmers and other groups have staged protests in an effort to secure sweeteners in exchange for support at the ballot box”, the news site says.

The majority of the demonstrators at Wednesday’s march were from Uttar Pradesh, which is India’s most populous state, with more than 200 million people, and the most important electorally.

Farmer Abhimanyu Kohar condemned the police response to the protest, and said that agricultural workers will continue to demonstrate until their demands are met.

“There should be dialogue within a democracy. But this government is in a denial mode, they are unwilling to accept that there is a farm crisis. They will pay heavily in the upcoming elections for what they have done today,” he told Al Jazeera.

Official economic data supports the claims of widespread suffering among the sector’s workers. “Rural wage growth started decelerating sharply in the middle of last year, and latest data shows that they are yet to show a credible recovery,” says the Hindustan Times.

“Agriculture alone can no longer sustain families dependent on farming in the villages of Uttar Pradesh,” opposition politician Yashpal Malik told New Delhi-based newspaper National Herald.

Malik also claimed that Prime Minister Modi’s government “is forcing farmers to keep the prices low to run state subsidy schemes”.

Modi and his right-wing Bharatiya Janata Party (BJP) “routed all opposition parties in Uttar Pradesh in the last elections”, says Al Jazeera.

The PM remains personally popular, according to recent polls, “but after four years in power, support for his party has been eroded by voter concerns about jobs and the spike in fuel prices”, the site reports.

Comment by Riaz Haq on October 4, 2018 at 9:42pm

#Tractors production in #Pakistan up 33.20%. During the period from July-June, 2017-18 about 71,894 tractors were manufactured as compared to the 53,975 tractors of same period of last year. #agriculture https://pakobserver.net/tractors-production-up-33-20pc/ via @pakobserver

The domestic production of tractors during fiscal year 2017-18 witnessed growth of 33.20 percent as compared the production of the corresponding period of last year.
During the period from July-June, 2017-18 about 71,894 tractors were manufactured as compared to the 53,975 tractors of same period of last year.
On month on month basis, the local production of tractors also grew by 15.21 percent as it was recorded at 3,926 units in June 2017 to 4,523 units in June 2018. according the Quantum Index Number of Large Scale Manufacturing.
It may be recalled that the overall Large Scale Manufacturing Industries (LSMI) of the country witnessed growth of 5.38 percent during the year 2017-18 compared to last year.The LSMI Quantum Index Numbers (QIM) was recorded at 147.07 points during July-June (2017-18) against 139.55 points during July-June (2016-17), showing growth of over 5.38 percent.
Meanwhile the production of trucks witnessed growth of 5.76 percent by going up from the output of 608 units in June 2017 to 643 units in June 2018.
The production of trucks also increased from 7,712 units last year to 9,187 units, showing growth of 19.13 percent while the production of tractors increased by 33.20 percent, from 53,975units to 71,894 units.
On year-on-year basis, the production of jeeps and cars increased by 40.90 percent during the month of June 2018 against the output of June 2017. During the period under review, Pakistan manufactured 16,234 jeeps and cars during June 2018 against the production of 11,522 units during June 2017.
During last financial year, the production of light commercial vehicles (LCVs) witnessed an increase of 19.74 percent in production during the period under review by growing from 24,265 units last year to 29,055 LCVs during 2017-18.

Comment by Riaz Haq on October 15, 2018 at 10:04pm

USAID to expand agri-tech-based private sector investment in Pakistan
October 16, 2018

https://pakobserver.net/usaid-to-expand-agri-tech-based-private-sec...

Dedicated to private sector agricultural technology innovation as a key to unlocking the full potential of Pakistan’s horticulture, dairy and livestock sectors, USAID Pakistan through the Pakistan Agricultural Technology Transfer Activity signed Memoranda of Understanding (MoUs) with 10 leading private sector agri-tech companies to help scale up investments in affordable new agricultural technologies. The project has signed MOUs with Ali Akbar Group Enterprises, CattleKit, Farm Dynamics, Haji Sons, Farm Solutions, Dairy Solutions, Solve Agri Pak, Matra Asia, Ravi Agriculture, and Noorani Industries.
The PATTA project partnership seeks to enable agri-tech knowledge transfer and eliminate the barriers to technology adoption, increasing awareness and ultimately enhancing farmers’ production, and profits. The results will improve Pakistan’s overall agriculture-fuelled economic infrastructure and contribute to food security.
PATTA’s partners demonstrate willingness to invest in technology expansion to convert agricultural innovation into commercial success with a pro-farmer approach. Chief of Party PATTA Dr. Daney Jackson stated, “These MOUs formalize PATTA’s partnership with leading private sector companies to support agricultural technology adoption across Pakistan.”
This local partnership-driven technical assistance is spearheading private sector development in the agricultural technology sector. USAIDPATTA will support at least 30 private sector companies to become more competitive and profitable by upgrading equipment, commercialising and marketing500 technologies and modernizing management practices. Technology, innovation and agriculture can increase agrarian production, profitability and expand the work forceby 3400 jobs. Private sector investment is expected to increase by USD 4.8 million and sector sales by USD 17.68 million in 4 years through PATTA’s initiatives.
In a recent MOU signing ceremony, CEO Farm Solutions Bilal Chaudhry stated that partnership with USAID will enable the private sector to accomplish gains that cannot be realized alone.
CEO Matra Asia Anwar-ul-Haq stated, “The partnership between Matra Asia and USAID will help increase farmer profitability by reducing the input costs and increasing yields.”
PATTA’s 10 private sector partners are also striving to narrow the gap between men and women by providing opportunities to women farmers and entrepreneurs. One of these partners – Haji Sons – has ensured that their technology demonstrations also reach female farmers, enabling them to adopt leadership positions in agricultural technology.

Comment by Riaz Haq on October 15, 2018 at 10:05pm

China ready to help boost Pakistan’s farming sector

https://www.thenews.com.pk/print/381300-china-ready-to-help-boost-p...


Pakistan and China have agreed to broaden agro-cooperation by adopting a comprehensive approach to fast-track communication and implementation to tap the immense potential of the most important sector, a statement said on Monday.

“Agricultural cooperation will set new and important direction that should focus on areas as well as the level of cooperation and finalisation of specific plans,” MA Aiguo, Vice Minister for Agriculture and Rural Affairs, China, said in a meeting with Makhdum Khusro Bakhtyar, Minister for Planning, Development & Reform (PD&R).

Aiguo said China was ready to share its expertise and successful agriculture models with Pakistan. Bakhtyar said Pakistan’s agriculture sector employed 45 percent of manpower and contributed about 24 percent in GDP. “It provides livelihood to 64 percent of the country’s rural population and shares 20 percent in total exports,” the minister added. The minister identified that Pak-China agricultural cooperation had to focus on the vertical increase in productivity of existing crops, transfer of knowledge and technologies, seed and plant protection as well disease control, value addition and marketing of agri products including dairy, livestock, and fisheries. “The mutual cooperation should cover the whole basket of agri-sectors,” he added.

Bakhtyar stressed there was a massive potential of developing Pakistan’s agriculture sector and achieving a win-win situation. He pointed out that joint ventures, value-addition, cold chain management for fruits/vegetables, marketing, and branding would help Pakistan overcome the past weaknesses and increase its exports to China and other nations of the world.

Comment by Riaz Haq on February 22, 2019 at 4:11pm

#Commercial #Olive #farming in #Pakistan gets boost with arrival of 100,000 plants from #Spain, #Turkey. A total of 550,000 plants will be imported under the project which is being implemented by the National #Agricultural Centre. http://www.radio.gov.pk/22-02-2019/olive-farming-gets-boost-with-ar...

The move is part of a project to promote cultivation of olive on commercial basis in the country.

A total of 550,000 plants will be imported under the project which is being implemented by the National Agricultural Centre.

The project for the promotion of cultivation of olive on commercial basis has been approved under the Public Sector Development.

Dr Bari said that a survey of the potential areas had been completed and it was found that these areas were best suited for olive plantation.

The olive cultivation will not only offer an ‘olive branch’ to peace in Fata, but will also serve as a source for livelihood of farmers in the entire Waziristan belt and agencies of Fata.

Comment by Riaz Haq on February 22, 2019 at 4:19pm

The world is literally a greener place than it was twenty years ago, and data from NASA satellites has revealed a counterintuitive source for much of this new foliage. A new study shows that China and India (and Pakistan) —the world’s most populous countries—are leading the increase in greening on land. The effect comes mostly from ambitious tree-planting programs in China and intensive agriculture in both countries.

https://earthobservatory.nasa.gov/images/144540/china-and-india-lea...

Ranga Myneni of Boston University and colleagues first detected the greening phenomenon in satellite data from the mid-1990s, but they did not know whether human activity was a chief cause. They then set out to track the total amount of Earth’s land area covered by vegetation and how it changed over time.

The research team found that global green leaf area has increased by 5 percent since the early 2000s, an area equivalent to all of the Amazon rainforests. At least 25 percent of that gain came in China. Overall, one-third of Earth’s vegetated lands are greening, while 5 percent are growing browner. The study was published on February 11, 2019, in the journal Nature Sustainability.

The maps on this page show the increase or decrease in green vegetation—measured in average leaf area per year—in different regions of the world between 2000 and 2017. Note that the maps are not measuring the overall greenness, which explains why the Amazon and eastern North America do not stand out, among other forested areas.

“China and India account for one-third of the greening, but contain only 9 percent of the planet’s land area covered in vegetation,” said lead author Chi Chen of Boston University. “That is a surprising finding, considering the general notion of land degradation in populous countries from overexploitation.”

Comment by Riaz Haq on April 8, 2019 at 7:39am

#Pakistan among world's top 10 #rice producers with 7.4 million tons last year. 28% jump in rice #export last year earned $2 billion for Pakistan. https://www.dawn.com/news/1474525

IN Pakistan’s context, rice statistics are pretty impressive. Sown on 2.89 million hectares (about 10 per cent of total cropping area), it earned $2 billion (around 8pc of export income) for the country.

Put it in the agricultural context, it is second to wheat in acreage and, in economic terms, only second to cotton (and its allied products as per Pakistan Bureau of Statistics data) in export earnings. It accounts for 3.1pc of value-addition in the agriculture sector and varyingly contributes 1.3-1.6pc to the GDP.

Last year, it assumed added significance when production hit 7.4 million tonnes placing Pakistan on the list of the 10 largest producers on the world rice chart. According to the Economic Survey of Pakistan (2017-18), the area under rice increased by 6.4pc — 2.74 million hectares in 2016-17 to 2.89 million hectares and production swelled by 8.7 per cent — from 6.84 million tonnes to 7.44 million tonnes.

Both these factors helped Pakistan post a 28pc increase in rice export. According to data from the Rice Exporters Association of Pakistan (Reap), it sent out a little over four million tonnes (for $2 billion) in 2018, as compared to 3.44 million tonnes for $1.6 billion in 2017. This showed a significant growth of 27.7 per cent in terms of value and 17 per cent in terms of quantity.


As far as profiling of rice is concerned, its three board categories are: basmati (long grain and aromatic), coarse (IRRI type) and a generic term called “others.” The last type comprises of hybrid, unapproved and some smuggled varieties that have crept in due to relaxed official control.

What adds to national seed confusion is the fact that the country has approved 108 varieties in the last 15 years — from 2003 to 2018. All of them are now entitled to sale. However, only 48 of them are actually released and found in the field, depending on requirements of different ecological zones. It is the Chinese hybrids which have made the difference in the last two years.

Punjab (with all kinds of basmati, super, IRRI and hybrids) leads the national production scale with a contribution of 53pc. Sindh (IRRI and hybrids) follows with 26pc, Balochistan (IRRI, hybrids) with 12pc and the remaining 9pc comes from the Khyber Pakhtunkhwa, which has many local coarse varieties for hills and plains. Punjab’s contribution may increase as hybrid varieties are now getting more space while competing crops lose economic sheen.

However, this happy rice scenario has two sore points: it is still stuck in a low yield groove and failing in international retail markets. Despite a massive influx of seeds, Pakistan has not been able to break beyond 2.56 tonnes per hectares production. The world average is 4.7 tonnes per hectare production. With high yielding seeds and recommended practices, 4 tonnes per hectare is easily achievable.

The federal Ministry for Food Security and Research took an initiative in 2015 for improving yield and tradable surpluses and enlisted the Chinese for help. For the next two years, both sides made a beeline towards each others’ fields and laboratories. It resulted in better hybrid seeds arriving in Pakistan and making a difference the very next year i.e. 2018.

Last year’s three-pronged increase was the result of the same effort: the area increased by 6.4pc, production went up by 8.7pc and average yield jumped from 825 kilogram per acre in 2010-11 to over 1,000 kilograms.

Despite this, improvements on the supply side and corresponding initiatives on the marketing side — domestic and international — is still a distant dream. Exports are largely restricted to bulk dumping in Middle Eastern markets while brand development is encouraged for domestic markets. These brands can then go beyond national borders and claim a niche in the world market.

Comment by Riaz Haq on July 6, 2019 at 7:35am

#Pakistan launches Rs. 309.7 billion #agriculture program. Focus on growing #exports and substituting #import. Pakistan’s import bill for major #agricultural commodities reached $4 billion last year https://tribune.com.pk/story/2004597/2-govt-unveils-rs309b-programm...

The government on Tuesday announced the launch of Prime Minister’s National Agriculture Emergency Programme worth Rs309.7 billion to uplift the agricultural economy.

As many as 16 projects in the agriculture sector would be launched at a cost of Rs309.7 billion under the prime minister’s agriculture programme to boost yields of major crops.

The prime minister’s programme will drastically increase agricultural spending over the next five years, by 360%. The share of federal government spending will be Rs85 billion, share of provincial governments will be Rs175 billion and the share of farmers will be Rs50 billion.

Under this programme, 16 projects will be initiated in the agriculture sector in five areas. Four of these projects will be launched at a cost of Rs44.8 billion, which would have a provincial share of Rs7.4 billion, in a bid to boost yields of major crops and encourage the production of oilseeds.

Three projects, costing Rs220 billion, will be focused on conserving and increasing water productivity. Another three projects, which will have a cost of Rs13.9 billion, will harness the untapped potential of fisheries.

The government plans to invest Rs44.8 billion with a federal share of Rs7.4 billion in four livestock projects for small and medium-scale farmers. Two projects worth Rs23.6 billion will be started without federal share to transform Punjab’s agriculture produce markets.

However, Sindh is shy of participating in the Prime Minister’s National Agriculture Emergency Programme as it has not responded despite repeated calls by the federal government.

At a joint press conference with Pakistan Tehreek-e-Insaf (PTI) leader Jehangir Tareen, Federal Minister for National Food Security and Research Mehboob Sultan said Prime Minister Imran Khan had taken initiatives to bring improvement in the agriculture sector.

He said more than 100 meetings were held in major cities across the country to formulate a strategy in consultation with the provinces to implement the emergency programme.

The minister lamented that previous governments had ignored the sector and allocation of funds for agriculture.

He added that Pakistan was importing cotton via Afghanistan and the government was negotiating with textile millers regarding duties on cotton import.

Speaking on the occasion, Tareen said the agriculture sector was Pakistan’s lifeline, however, it had been ignored by previous governments in the last 10 years.

He said post-18th Amendment in 2011, the total agriculture development spending started decreasing drastically by 60%. Provinces did not play their due role in taking initiatives meant for increasing crop yields, he said.

Pakistan’s import bill for major agricultural commodities peaked to around $4 billion last year, he said, adding that they would spend Rs309 billion under the emergency programme to enhance yields.

He invited Sindh to participate in the programme and set aside its political differences for the betterment of the sector.

“If Sindh participates, it will get an additional boost of Rs15 to Rs18 billion in agriculture development spending over five years from the federal government,” said Tareen.

Comment by Riaz Haq on July 9, 2019 at 8:39am

#Pakistan, #US for enhanced #agriculture cooperation. #Agriculture mechanization, to augment the yield of #cotton, development of #oil seed and decrease the #import bill, #American market access to increase #mango and other #exports to #US. #trade #tech https://www.dawn.com/news/1492976

Ahead of Prime Minister Imran Khan’s visit to the United States of America, the two sides on Monday discussed measures for enhancing cooperation in the agriculture sector.

In a meeting, Minister for National Food Security and Research, Muhammad Mehboob Sultan and US Ambassador Paul Jones agreed that the forthcoming visit would be very important to highlight the preferred areas of cooperation especially in the field of agriculture.

Mr Sultan highlighted that the scope of Pakistani mangoes to the US market could be enhanced since the product meets all the international standards and is exported to almost 48 countries after vapour treatment.

This will give a great boost to mango exports and US could also work in collaboration for value-addition of mangoes in Pakistan which will be mutually beneficial. Mr Sultan further said that dates from Pakistan may also be granted market access in US. In view of the visit of the prime minister, dates and other products may also be granted market access on reciprocity.


US ambassador was of the view that Pakistan could import meat from the United States to which the federal minister explained that it could be explored after mutual consultation.

The agriculture minister said the two countries must explore venues for mutual cooperation especially when the prime minister’s agriculture emergency programme has already been launched.

He said the present government is making every effort to strengthen the agriculture sector, especially after the devolution. The government has identified few areas to be developed on priority and important of those areas are agriculture mechanisation, to augment the yield of cotton, development of oil seed and decrease the import bill.

He said the government as well as the agriculture ministry is open for cooperation from all provinces and friendly countries for mutually beneficial work in the agriculture sector.

Ambassador Jones said the United States is well aware that Pakistan is an important agricultural country, and exchange of technologies in the field of agriculture including cooperation in value-addition, and public-private partnership would be welcomed by both the sides.

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