Pakistan Tops South Asia in Agriculture Value Addition

[Riaz Haq]

While Pakistan has lagged in South Asia region in manufacturing value addition, the country enjoys a significant lead in agriculture value addition over Bangladesh and India.  Livestock revolution and increasing farm mechanization have enabled Pakistan to significantly raise agriculture productivity and rural incomes since 1980s. There is rising tractor ownership and growing 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. However, Pakistan still gets less crop per drop than India which means there is significant opportunity for water saving.

Agriculture Value Addition. Courtesy: Dr. Krishna Prasad Pant

Agriculture Value Addition:

As of 2014, the agriculture value addition in Pakistan is estimated at $1,050 per worker, significantly higher than $700 per worker in India and $600 per person in Bangladesh., according to the World Bank data as reported by Dr. Krishna Pradad Pant in Agriculture Investment in his paper titled "South Asia:trends, opportunities and challenges". 

Agriculture Value Addition. Courtesy: Dr. Krishna Prasad Pant

Adding value is the process of changing or transforming a product from its original state to a more valuable state, according to Professor Mike Boland of Kansas State University. The professor explains how it applies to agriculture as follows:

"Many raw commodities have intrinsic value in their original state. For example, field corn grown, harvested and stored on a farm and then fed to livestock on that farm has value. In fact, value usually is added by feeding it to an animal, which transforms the corn into animal protein or meat. The value of a changed product is added value, such as processing wheat into flour. It is important to identify the value-added activities that will support the necessary investment in research, processing and marketing. 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."

 

Tractor Ownership:

Agriculture mechanization is measured in terms of tractor ownership in horsepower per hectare of cultivated land. It has grown in Pakistan from 1.02 hp per hectare in 1992 to 1.5 hp/ha in 2015,  according to a paper titled "In Pakistan, Agriculture Mechanization Status" by Muhammad Aamir Iqbal. It is still significantly lower than India's 2.50, China's 3.88 and Japan's 7.0.      

 

Pakistan's tractor market is growing. In 2017, over 60,000 tractors were sold. Production capacity stands at 70,000 units per annum and models range from 55 to 85hp, according to a report in Pakistan's Dawn newspaper.  Since the launch of the indigenization program initiated in the eighties by the Pakistan Tractor Corporation, the industry has achieved 95% localization in terms of production.

Crop Per Drop:

Data on irrigation efficiency in Pakistan highlights significant opportunities for saving water.

In an average rainfall year, the water productivity for wheat in Pakistan (0.76 kg/m3) is 24% less than the global average (~1.0 kg/m3), according to Water Watch . During the drought of 2001- 02, water productivities were at the same level as the global average. Hence, drought results in a more efficient utilization of water resources by wheat crops grown in the rabi (the dry winter season).

Water Watch found that rice yield in Pakistani Punjab is on-average 24% higher than in Sindh. The water productivity of rice (0.45 kg/m3) is 55% below the average value for rice in Asia (~1.0 kg.m3). Contrary to wheat, the water productivity of rice decreased during the 2001 drought, because rice is sensitive to water stress and to salinity that is intensified through increased groundwater withdrawals.

Crop Yield Comparison. Source: Kleffman Group

Pakistan lags India in water productivity. Crop yields show distinct North-South and East-West variations: wheat yields in the Indian Punjab average 29% higher than in the Pakistani Punjab to the west, and wheat yields in the Pakistani Punjab are 33% higher than in the Pakistani Sindh to the south. These spatial patterns of wheat yield are similar for 1984-85 and 2001- 02. Because crop evapotranspiration in the Pakistani Punjab and Indian Punjab are similar, the difference in crop yields between these two regions is also responsible for the difference in water productivity values. This important conclusion implies that increased water productivity can only be achieved by increased crop yields. Experiments of the Pakistan Agricultural Research Council across the country (n=41) have indicated that the overall yield of wheat can be increased by 54%, provided that inputs are optimal. Improved management of water quality (groundwater and canal water) and evacuation of drainage water are important components for improving agricultural production. Seed quality, fertilizers, and pesticide control should also be improved. 

Summary: 

While Pakistan has lagged in South Asia region in manufacturing value addition, the country enjoys a significant lead in agriculture value addition over Bangladesh and India.  Livestock revolution and increasing farm mechanization have enabled Pakistan to significantly raise agriculture productivity and rural incomes since 1980s. There is rising tractor ownership and growing 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. Pakistan still gets less crop per drop than India which means there is significant opportunity for water saving.

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[Riaz Haq]

CPEC Agri corridor sows seeds of economic growth

https://pakobserver.net/cpec-agri-corridor-sows-seeds-of-economic-g...


As 2022 draws close, the agriculture sector has gained manifold tractions under China-Pakistan agriculture cooperation promising the phenomenal agri growth in the length and breadth of Pakistan, according to a report published by Gwadar Pro on Saturday.

Given the comprehensive spectrum of cooperation under “CPEC Green Corridor” throughout the year in 2022, the agriculture sector has recorded a remarkable growth of 4.4% and surpassed the target of 3.5% as well as last year’s growth of 3.48% during FY2022.

According to Economic Survey, the growth in the agriculture sector recorded 4.4% and surpassed the target of 3.5%.

This remarkable growth is mainly underpinned by China-led assistance to Pakistan of many facets relating transfer of hands-on experience in the fields of intercropping, high-yield seeds, pest control, hybrid cultivation, corporate farming, innovate irrigation technique, agri machinery training, agri research & development, protocol for Pak agri exports to China, digital farming and agri labor skills.

Since Sino-Pak agriculture has continued to deepen in 2022, Pakistan’s agricultural products exported to China from January to August 2022 reached $730 million with a year-on-year increase of 28.59%.

Pakistan’s agricultural exports to China are expected to exceed a record high of $1 billion next year.

On the back of 2022 agri sector’s milestone achievement, the focus of next year under CPEC Green Corridor will be continuing on improving land cultivation area, water management, better access to markets for inputs (seeds, fertilizers, farm mechanization, credit, water) and outputs, improved infrastructure including storage and cooling facilities, reduction in post-harvest losses, greater investment in research, development and extension, improved quality and fulfillment of quarantine requirements for international markets and competitiveness, greater diversification, especially minor but high-value crops, farm input and effectiveness of markets.

The announcement of three new corridors under CPEC including China-Pakistan Green Corridor (CPGC), which focuses on agricultural environment and food security speaks volumes about the significance of agricultural cooperation in CPEC.

The inauguration of the Intercropping Research Center jointly established by Sichuan Agricultural University (SAU) and the Islamia University of Bahawalpur (IUB) in 2021 showed fantastic results in the 2022 season.

According to a news report a few weeks ago, China’s maize-soybean strip intercropping technology completed harvest at 65 demonstration sites in Punjab, Sindh and Khyber Pakhtunkhwa recently, and the production of maize and soybeans reached 8,490 kg and 889 kg per hectare respectively in the intercropped fields.

Compared with the production of solely cropped maize and soybeans at these 65 sites which are 8,995 kg and 1,531 kg per hectare respectively, the intercropping technology definitely creates much more economic benefits.

Good news is that the researchers are also developing the strip intercropping systems of maize-peanut, maize-pea, sugarcane-soybean, sugarcane-mustard, wheat-mustard, wheat-soybean, wheat-chickpea, potato-maize and canola-pea.

Another healthy development in the agriculture sector happened in June, 2022 when a newly developed centre at Arid Agriculture University Rawalpindi (AAUR), the CPEC-Agriculture Cooperation Centre (ACC), announced to perform policy research, assist Chinese businesses in working in the agriculture sector, and foster institutional cooperation. Pakistan is also looking forward to enhance banana production with Chinese cooperation.

[Riaz Haq]

CPEC Agri corridor sows seeds of economic growth

https://pakobserver.net/cpec-agri-corridor-sows-seeds-of-economic-g...


According to Nosherwan Haider, CEO of the Sprouts Biotech Laboratories, Pakistan contributes less than 0.5% to the global banana market whereas China contributes about 4.5%.

Cotton germplasm is another significant component in Pak-China agricultural cooperation. For many years, China and Pakistan have cooperated in the field of gathering and identifying cotton germplasm resources.

In order to determine which cotton germplasms are resistant to heat, drought, diseases, and insect pests in various locations and environments, Institute of Cotton Research (ICR) of the Chinese Academy of Agricultural Sciences (CAAS), collaborated with Cotton Research Institute (CRI), Multan, University of Agriculture Faisalabad (UAF), and some other universities and scientific research institutions.

During July, 2022, Tianjin Modern Vocational Technology College (TMVTC), China and MNS-University of Agriculture, Multan (MNSUAM), Pakistan signed an online agreement for an agricultural machinery training program of Luban Workshop in Pakistan.

The two institutions will jointly promote the sci-tech exchanges and cooperation on agricultural machinery, germplasm resources and agricultural environment.

Earlier this year, Zhang Jishu from Sichuan Litong Food Co., Ltd. announced that his company would implement a 1,000-acre pepper cultivation demonstration garden in Multan during the 2022-2023 growing season.

In partnership with local agribusinesses and farmers in Pakistan, it intends to take over 15,000 acres of pepper orders in South Punjab, with a planned harvest of 30,000 tonnes of dried pepper. Additionally, the company intends to construct two pepper processing plants in Lahore and Multan and is in the process of locating suitable sites.

Pakistan is also working to grow the sorghum crops as, along with the three main basic foods of the globe, sorghum is a crop that has increasingly gained acceptance around the world.

During the Symposium on Sorghum Industry Development of China and Pakistan organized during 2022, there was a consensus that, sorghum is a versatile crop that can be useful in supplying food and fodder.

Hybrid farming is growing in Pakistan in a variety of sectors, as the Executive Member of the Asia and Pacific Seed Association and General Manager of Wuhan Qingfa Hesheng Seed Company, Zhu Xiaobo said that the hybrid canola variety developed by her company has been planted in Pakistan on about 10,000 hectares of land, covering around 6000 households.

In the next three to five years, they expect it to expand to over 40,000 hectares and provide more and healthier edible oil to Pakistanis. Similarly Sino-Pak cooperation in cauliflower farming through hybrid seeds is also expanding.

As Pakistan faced one of the worst flood calamities in 2022, consequently loosing drastic crop yield, Wuhan-based hybrid seed developer and supplier China also announced to donate hybrid rice seeds to mitigate flood impact on agriculture and food security.

According to the Chairman of the Pakistan Agricultural Research Council (PARC), Dr. Ghulam Muhammad Ali, to raise the average productivity and output of Pakistan’s crops and to mitigate the harm caused by the floods, experts from Pakistan and China are developing hybrid wheat types.

To facilitate the swift development of agri-sector in the country, the Punjab cabinet approved the leasing out of state land for corporate farming as part of the CPEC initiative in the first week of March 2022.

The move, according to agriculturalists, would be a revolutionary one for Pakistan’s farming industry. Corporate farming describes the direct ownership or leasing of farmland by business organizations for the purpose of producing goods for their in-house processing needs or for the open market.

[Riaz Haq]

The alliance between Pakistan and China in the field of agriculture has emerged as a powerful force driving economic growth, sustainable development, and food security in both nations.

https://dailytimes.com.pk/1109673/agriculture-emerges-as-a-powerful...


The strategic collaboration between these two neighboring countries, under the framework of the China-Pakistan Economic Corridor (CPEC), has witnessed significant advancements in recent years, transforming the agricultural landscape of Pakistan, according to a report carried by Gwadar Pro on Monday. Through joint initiatives, technological exchanges, and investment in key sectors, the bilateral partnership has not only addressed Pakistan’s domestic agricultural challenges but has also paved the way for future prosperity and self-sufficiency.

The agricultural cooperation between Pakistan and China has witnessed remarkable developments, particularly in the cultivation of high-value crops and the introduction of advanced farming technologies. The collaboration between Chinese and Pakistani companies in producing Chinese hybrid canola and edible oil has significantly reduced Pakistan’s dependence on imported cooking oil, meeting the country’s domestic demand while bolstering its foreign exchange reserves.


The success of chili cultivation in South Punjab, Sindh and other provinces has opened new avenues for export to China, with substantial growth in agricultural exports expected in the coming years. The establishment of the CPEC-Agriculture Cooperation Centre (ACC) and the signing of agreements between educational institutions for agricultural training programs further demonstrate the commitment of both nations to fostering long-term cooperation in the agricultural sector.

With the establishment of the China-Pakistan Green Corridor (CPGC) under CPEC, the focus on agricultural environment and food security has taken center stage. The utilization of advanced agricultural technologies, such as maize-soybean strip intercropping, has demonstrated economic benefits by increasing crop yields and improving resource efficiency. The agricultural cooperation between Pakistan and China has yielded remarkable results. In 2022 alone, Pakistan’s agricultural sector experienced a commendable growth rate of 4.4%, surpassing both the set target of 3.5% and the previous year’s growth of 3.48%.

[Riaz Haq]

The alliance between Pakistan and China in the field of agriculture has emerged as a powerful force driving economic growth, sustainable development, and food security in both nations.

https://dailytimes.com.pk/1109673/agriculture-emerges-as-a-powerful...


This achievement is a testament to the effectiveness of the initiatives implemented under CPEC and the Green Corridor in particular. The surge in agricultural exports to China reflects a staggering year-on-year increase. With expectations of agricultural exports surpassing a record high in 2023, it is evident that the agricultural cooperation between these two nations has bolstered trade relations and presented new opportunities for Pakistan to establish itself as a key player in the global agricultural market.


In addition to the impressive growth rates and increased agricultural exports, there are other significant numbers that underscore the impact of the agricultural cooperation between Pakistan and China. One noteworthy aspect is the cultivation of dried chilli, which has witnessed substantial progress. This not only signifies the expansion of chilli cultivation in Pakistan but also highlights the potential for exporting this sought-after commodity to China.

The successful implementation of the maize-soybean strip intercropping technology at 65 demonstration sites in Punjab, Sindh, and Khyber-Pakhtunkhwa has yielded impressive results. The intercropped fields have achieved maize and soybean production of 8,490 kg and 889 kg per hectare, respectively, surpassing the yields of solely cropped maize and soybeans. This innovative technique demonstrates the effectiveness of knowledge and technology transfer from China to Pakistan, resulting in increased productivity and economic benefits for farmers.

Many agro-based innovative Chinese companies involved in production and support for bee farming, honey production, sorghum, sesame and peanuts in various regions of Pakistan has made substantial contribution in diversifying these corps and their production. The ongoing efforts to strengthen ties reflect a long-term commitment to advancing agricultural practices, technology transfer, and market access. As the collaboration deepens, it is essential to prioritize sustainable farming practices, resource management, and the adoption of modern technologies to ensure long-term productivity and environmental conservation. By fostering innovation, knowledge exchange, and market diversification, the agricultural sector in Pakistan is poised to become a driver of economic growth, food security, and rural development, while further cementing the bilateral ties between Pakistan and China.