Pakistan's agricultural machinery sector is in need of improvement to keep up with the demand for agri-produce.
A common litmus test for success is the kind of car a person drives; the shinier the better. This is obviously a materialistic approach to measuring a person's worth, and wholly untrue but I feel like the only scenario in which a latest model machine indicates a person's triumph is in the case of a farmer. Is the yield of his sow not determined by the machinery he maneuvers across his fields? Does the quality of his equipment not ascertain what he manages to put on the table, what he manages to provide to the nation?
Despite the significance of agricultural machinery to a farmer’s livelihood as well as to Pakistan’s “agrarian” economy; the agricultural machinery industry in Pakistan is constantly dealt the shorter hand. This is due to the ongoing economic crisis and the government’s general disregard for the sector, while the farmers are left to wade through the acute effects of this negligence.
There are many facets to Pakistan’s increasing lack of farm mechanization including an outdated manufacturing process, insufficient research and development in agricultural technology, limited access to finance, and a fragmented supply chain. All of these elements contribute strongly to the fact that agriculture growth in Pakistan has slowed down from an average of over 4% per year between 1970-2000 to below 3% thereafter . Moreover, according to a World Bank report released as recently as two weeks ago: Pakistan's agricultural productivity per worker has remained stagnant over the past 30 years, and it has grown at a rate of less than 0.7% annually, while in contrast, the average agricultural growth rate in South Asia has been four times higher than Pakistan's. This blog will be exploring the many facets of the crisis in detail.
State of Mechanization in Pakistan:
The current state of the agricultural machinery sector in Pakistan is unsustainable, with small and medium-sized enterprises (SMEs) struggling to keep up with the growing demand for farm machinery. The largest agricultural machinery manufacturer, Millat Tractors Ltd, suspended its operations in March 2022 due to a severe liquidity crunch. The entire tractor manufacturing industry is facing a liquidity crunch as sales tax refunds worth over Rs 8 billion are stuck with the Federal Board of Revenue for the last two years. The industry is paying 17% sales tax to its vendors but is only allowed to pass on 5% sales tax to buyers, and the government is supposed to compensate the rest 12%.
The absence of a centralized distribution system further exacerbates the issue, making it difficult for farmers to find spare parts and repair services for their machinery. This not only affects farmers' access to agricultural machinery and equipment but also increases the costs associated with transportation and storage.
To address these issues, there is a need for a policy push to capitalize on the grounds for mechanized farming. The use of agricultural mechanization can contribute to every stage of crop cultivation and lead to a reduction in crop losses, saving in seeds and fertilizer, and saving in labor force while increasing crop intensity and yield.
Despite some efforts to develop solar-powered machines for farming, there is still a need for a concerted effort from the government and private sector to invest in the development of the agricultural machinery sector. This calls for the implementation of a well-integrated agriculture mechanization plan with a focus on local manufacturing of machinery and importation of productivity-enhancing machines.
The current state of the agricultural machinery sector in Pakistan is unsustainable, and without the infusion of technology, modernization of Pakistan's agriculture sector will not take place. The dependence on the agricultural sector will increase in the face of the country's existing economic situation, energy crises, and internal and external challenges. Therefore, it is urgent to adopt local-based agricultural machinery to accelerate crop production and meet the growing demand of the country.
Issues with Mechanization of Agriculture in Pakistan:
The first issue is outdated manufacturing processes. Pakistani farmers rely on old, second-hand tractors that are prone to breaking down and require costly repairs. These machines are so old that they don't work efficiently, causing losses due to wear and tear and lack of maintenance. It's frustrating to deal with these setbacks, but there are no other options because over 90% of the area is harvested through these machines and work without them is time-consuming and tedious.
The government's decision to import five-year-old tractors instead of parts has worsened the situation. This decision is more expensive and will hit local production and sales, potentially rendering thousands of people jobless. The Pakistan Association of Auto parts and Accessories Manufacturers has criticized this decision, stating that it will drain the country's foreign exchange reserves recklessly and not benefit the farmers, who will end up paying more for less fuel-efficient machines.
The second issue is insufficient research and development in agricultural technology. Pakistan lags behind other countries, such as Holland, which has become the second largest food exporter in the world with a 15% share in global food exports. The Dutch have overcome their own issue of expensive labor by researching, allocating funds and resources, and most of all, paying attention to the problem. Every aspect of farming in Holland is handled by machines, from animals to crops, and even cow sheds are cleaned by machines and cows are milked and fed by robots.
In Pakistan, very few farmers and policy makers realize that the more mechanized a farm is, the higher the production, and that this sector needs attention. Despite being an agrarian economy, Pakistan's agricultural education system has lagged behind the world in terms of producing skilled workers who can develop agricultural machinery and technology.
How can you mechanize your farm?
Imagine you're a young farmer who has been working on your family farm for years. You've seen how hard your parents and grandparents have worked to grow crops and raise animals with manual labor practices. You've also seen how tiring and time-consuming it can be, especially during peak seasons. One day, you read an article about how modern technology can help farmers work more efficiently and increase their profits. You start thinking about how you can bring these changes to your farm.
First, you assess your farm's needs. You realize that plowing and planting fields, harvesting crops, and caring for livestock are all tasks that take up a lot of time and energy. You start researching the different types of machinery available to help with these tasks.
You learn that there are tractors, combines, plows, and many other machines that can make farming easier and faster. You also realize that buying these machines can be expensive, so you start planning and budgeting for the investment.
Once you've chosen the equipment you need, you start training your team on how to use it. You make sure they know how to operate it safely and how to do basic maintenance and repairs.
You start small by investing in a tractor and plow, and gradually expand as you see the results. You evaluate the impact of these changes on your farm and realize that they've made a significant difference. You're able to plow and plant your fields in half the time it used to take, and your crops are healthier and more abundant.
You're thrilled with the success of the changes you've made, and you're excited to see what other modern technologies you can bring to your farm in the future. You realize that moving to a mechanized way of farming requires careful planning, investment, and training, but it's worth it in the end.
The agricultural sector is in dire need of improvement to keep up with the growing demand for the country's agricultural produce. The benefits of farm mechanization are numerous, from improving productivity to conserving energy and resources and improving the comfort and safety of farmers. As the agricultural sector continues to be the backbone of Pakistan's economy, it is essential to ensure that the sector remains competitive through increased productivity.
What machinery is needed to mechanize my farm?
In Pakistan, where labor is relatively inexpensive and abundant, mechanization of farming operations can help increase productivity and efficiency, reduce labor costs, and improve overall crop yields.
Here are some of the most important machines needed to mechanize labor-intensive farm operations in India:
The specific machines needed for a particular farm depend on the type of crops grown, the size of the farm, and the labor requirements. It is essential to choose machines that are suitable for the specific farm's needs and to ensure that the machines are maintained properly to ensure optimal performance and longevity.
Moving Forward:
In conclusion, Pakistan's agricultural machinery sector is in dire need of improvement to keep up with the growing demand of the country's agricultural produce. The lack of farm mechanization and non-availability of farm machinery at a low cost to farmers has remained a significant obstacle to increasing agricultural development. The use of agricultural mechanization can contribute to every stage of crop cultivation and lead to a reduction in crop losses, saving in seeds and fertilizer, and saving in labor force while increasing crop intensity & yield. The benefits of farm mechanization are numerous, from improving productivity to conserving energy and resources and improving the comfort and safety of farmers.
Despite some efforts to develop solar-powered machines for farming, there is still a need for a policy push to capitalize on the grounds for mechanized farming. The dependence on the agricultural sector will increase in the face of the country's existing economic situation, energy crises, and internal and external challenges. Therefore, it is urgent to adopt local-based agricultural machinery to accelerate crop production and meet the growing demand of the country. The current state of the agricultural machinery sector in Pakistan is unsustainable, and without the infusion of technology, modernization of Pakistan's agriculture sector will not take place.
Thus, a concerted effort is required from the government and private sector to invest in the development of the agricultural machinery sector. This calls for the implementation of a well-integrated agriculture mechanization plan with a focus on local manufacturing of machinery and importation of productivity-enhancing machines. As the agricultural sector continues to be the backbone of Pakistan's economy, it is essential to ensure that the sector remains competitive through increased productivity.