INP-WealthPk

Farmers struggle amid rising input costs, insufficient market availability

March 03, 2023

Arooj Zulfiqar

Farmers are finding it difficult to sustain their livelihoods amid rising input costs and insufficient market availability. Talking to WealthPK, Muhammad Bilal Iqbal, an official of the National Agriculture Research Centre (NARC), said it was worrisome that input costs were on the increase and market availability was shrinking for farmers, whose incomes were constantly decreasing. “These issues have broader implications for the country's food security and economic growth.”

He said prices of seeds, fertilisers and pesticides had skyrocketed in the recent months due to devaluation of the Pakistani rupee against the US dollar because most of these inputs were imported. Moreover, he said farmers often had to rely on informal credit sources with high interest rates to finance their inputs, which further increased their production costs.

Bilal Iqbal said to address these issues, the government could devise policies that promoted the use of locally-produced inputs or provided subsidies on inputs to reduce the financial burden on farmers. “In addition, initiatives to improve farmers’ access to formal credit could help them secure loans at lower interest rates.”

“Another challenge for farmers is insufficient market availability, which limits their ability to sell their produce at fair prices. Many small farmers do not have direct access to markets and have to rely on middlemen, who often exploit them by offering low prices for their crops,” he pointed out.

“Furthermore, inadequate storage and transportation facilities often result in post-harvest losses, reducing the income that farmers can earn,” he maintained. The NARC official called for developing better market linkages for smallholders such as farmer cooperatives or contract farming arrangements with buyers. “This would help farmers access more lucrative markets and reduce their dependence on middlemen.”

Additionally, he said investing in storage and transportation infrastructure could help farmers reduce post-harvest losses and earn higher incomes. “It is essential to focus on diversification of crops, promoting better irrigation systems, and increasing productivity through modern technologies such as precision agriculture. This will not only help farmers reduce their input costs but also increase their yields and incomes.”

He said the challenges Pakistani farmers faced were complex and required a multi-pronged approach to address them. “The government should take steps to reduce input costs, improve market access, and invest in agricultural infrastructure. By working together, we can support our farmers and ensure that agriculture remains a vital sector for Pakistan's economic growth and food security.”

Credit: Independent News Pakistan-WealthPk