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Corporate Farming
Maximising agri output through corporate farming
Siraj-ul-Hasan
(September 20 2002) : Agriculturally developed countries have gained much by resorting to corporate farming. Pakistan, although an agricultural country basically, has not so far taken any concrete step in this direction despite realisation of its benefits.
Notwithstanding, bringing a change in the age-old system of practising agriculture from a way of life to some degree of scientific approach by adopting technologies emerging from time to time such as mechanisation, use of chemical fertilisers, canal irrigation system and other cultural practice, yet corporate farming with its inherent advantages has not been practised worth the name.
Undoubtedly, in the recent past some solitary and half-hearted efforts were made, both privately and publicly, to advocate its adoption and still now various agricultural development packages announced periodically both by the civilian and military governments with pretty attractive incentives are included such as providing land at concessional rates, some sort of tax holiday, providing basic infrastructural facilities etc.
The only conditions imposed on the expatriate investors was/is to have a reasonable equity with the local investors in the corporate enterprise undertaken. Such incentives aroused significant interest in foreign investors in terms of corporate farming.
This interest has been seen in a group of Chinese investors to have been translated into action when they acquired a sizeable area of land in Sindh to start the operation. How far and to what extent this effort has been successful is not known. However, from a media news sometime back, it was published that there has arisen some sort of difference of opinion as to the mutually agreed cost of land between the provincial government and Chinese investing company. It is not a good omen and must be availed of in the interest of corporate farming.
Now the Chief Executive (CE) of the present government is very eager to improve agricultural operations in the country. As late as July, 2001, Gen. Pervez Musharraf elaborate his government's guidelines to revamp agricultural potential in Pakistan.
He directed the concerned departments to improve and develop crop specific infrastructure in areas much suited to cultivate import substituting crops like tea, sugarcane and edible oil seeds etc. This objective can be adequately achieved by undertaking corporate farming.
Latest research in crop breeding and hybridisation of various seeds has proved that barani (rain-fed) area of the country and semi-arid zone in Punjab and NWFP are
most suitable ecologically for cultivation of tea, tobacco and edible oil seeds. These areas may be offered to the foreign and local investors to utilise them for corporate farming purpose. The government's latest decision to offer 200 acre land to each prospective investor/multinational would be hopefully conducive to create the desired confidence
in them.
It may be said that corporate farming, no doubt, shall go a long way to revolutionise Pakistan agriculture. But as many exponent of this type of farming consider it to be
a 'panacea' of all agricultural ills, it is too much to believe. Corporate farming may, certainly, show improvement on the agricultural front and its adoption with full vigour may be accelerated.
Business Recorder
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