Better agriculture growth expected

KARACHI: The State Bank of Pakistan has said agriculture sector growth will be better this financial year because of growth in major crops. In its third quarterly report (Jan-Mar 2009), the State Bank said fertiliser offtake remained low and production of sugarcane was also low, but growth was supported by minor crops along with rice and wheat.

“It could have been even better if sufficient inputs — irrigation water, fertilisers and certified seeds ñ had been used,” said the report. It said less than required irrigation water, concern over high prices and timely availability of fertilisers as well as plantation of substandard seeds restricted possible gains.

It observed that farmers did not get proper prices of paddy crop. “Following a drop in international rice prices and weaker exports, farmers did not get prices as high as anticipated earlier.” In addition, the farmers faced late start of sugarcane crushing and delayed payments despite domestic shortages of sugar. With respect to major crops, the central bank observed that despite less than required irrigation water, rice cultivation increased as the crop was supported by monsoon rains later.

It said wheat sowing area increased mainly due to the higher support price announced before sowing of the crop. Rains at the time of cultivation also helped increase non-irrigated area under wheat during fiscal year 2008-09.

Wheat harvest is provisionally estimated to have reached a record high of 23.3 million tons, slightly higher than 23.29 million tons achieved in FY07.

The State Bank noted that despite a sufficient wheat crop in recent years, there were shortages of the grain domestically because of cross-border smuggling and hoarding. It suggested that in order to provide cheaper bread to the masses checks should be applied to subsidised supply to the mills.....................

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