Muhammad Saleem

Value addition in agriculture is crucial to unleash its full economic potential, and Pakistan’s agriculture can reach the next level with Chinese methods and machinery. Ahtshamul Haq, a progressive farmer, told WealthPK that without using the exceptional practices of value addition, the agriculture sector could not achieve the desired results like the developed nations. “We are still following decades-old methods in agriculture which the world has long discarded. The people in charge know that Pakistan depends on its agriculture sector, and modern value addition technologies are urgently needed, but our progress is very slow in this area,” he said. To emphasize the importance of value addition, Muhammad Alamgir, the CEO of the National Productivity Organization (NPO), Ministry of Industries & Production, recently met the members of the Faisalabad Chamber of Commerce and Industry (FCCI). The aim of the visit was to highlight the role of value addition of agricultural products which helped Thailand a lot, and its dry fruits and vegetables segment showed a huge improvement. He said many units have been established in Thailand for making strawberry and potato snacks, even though the country does not grow strawberries. The Government of Pakistan has now made a plan to learn from the Thai experiences.

“The post-harvest losses in Pakistan are 35 to 40 percent, and we can reduce them through value addition and processing industries. With a value addition of Rs10 per kg, tomatoes can be sold for Rs250 per kg,” the NPO head stated. People in Hunza used to sell apricots at Rs200 per kg; but when the Aga Khan Foundation trained them in how to dry the fruit, they started to export the fruit, charging Rs2,000 per kilogram. Similarly, he said there was only one plant in Multan set up by a private party for extracting mango pulp but now their number was growing every day due to the importance of value addition. “The world needs about 2 lakh tons of mango pulp and its major share (80 percent) is being supplied by India. The taste of Pakistani mango pulp is unique and we can create different kinds of products from it. This is only possible through value addition,” he suggested and urged the FCCI members to use the NPO’s services to avoid the electricity losses. Ahtsham said Pakistan must collaborate with the Chinese entrepreneurs who were changing the global scenario, for developing its agriculture sector. Pakistan needs modern machinery for value addition and the Chinese are very skilled in it. He said with old methods, the Pakistani entrepreneurs would not be able to compete internationally in the near future. Our farmers and exporters have to be trained to capitalize on the changing scenario, he stressed.

Dr Sajjad Arshad, Acting President of FCCI, said the farmers suffered financial losses due to high yields, as they did not have the value addition methods. Last year, they produced a bumper crop of corn but incurred financial losses for no value addition. Currently, Pakistan is exporting $2.5 billion worth of rice. This volume could be increased to $5 billion by 2025 and $10 billion by 2030 by adding some values. But it’s unfortunate that the textile exports of Pakistan are declining and remittances are also dropping. The chamber president said Pakistan is behind in technology due to the government’s policies. He said the quality of poultry in Pakistan is equal to the United States but Pakistan is not paying attention to the latest trends that could enhance the value of its products. “It is the need of the hour to do something practical. We can also earn handsome forex by adding value to our dairy products. The government must devise a comprehensive strategy for this sector,” he said. Ahtsham said China's agriculture sector is adopting sustainable practices, innovation and technological advancements and is efficiently increasing productivity with each passing day. “Without adding value, we cannot get maximum profits. We have to integrate our agriculture sector with the technology the Chinese farmers have adopted. They are using drones and other advanced methods to monitor and cultivate their lands, but the Pakistanis are not familiar with such techniques,” he added.

Credit: INP-WealthPk