Chapter 3

AGRICULTURE DEVELOPMENT

Q.1 Discuss the role/importance of agriculture sector in the economy

of Pakistan?
Q.2 Discuss the problems of agriculture sector in Pakistan.
Q.3 Define cooperative farming. Discuss its importance and causes of
failure in Pakistan.
Q.4 What is mechanization of agriculture or farm mechanization? Give
your arguments for and against mechanization of agriculture in
Pakistan.
Q.5 Define agriculture price policy. What are the problems which
affect the agricultural price policy?
Q.6 What is agricultural marketing? What are the main defects of
agricultural marketing in Pakistan?
Q.7 Define land tenure systems. Discuss defects of land tenure system
in Pakistan.
Q.8 What is meant by land reforms? What are its objectives? Also write
down the impact of land reforms adopted in Pakistan.
52 ECONOMICS OF PAKISTAN

Q.1 Discuss the role / importance of agriculture sector in the

economy of Pakistan?
ROLE OF AGRICULTURE SECTOR IN ECONOMIC DEVELOPMENT:
INTRODUCTION:
Agriculture is the lifeblood of our economy. The total area of Pakistan is
79.61 million hectares. The cropped area in Pakistan 23.13 million hectors, 4.02
million hectors are under forests and 8.12 million hectares are our cultivatable
waste. Agriculture has been playing vital role in our economy particularly in the
context of economic growth. Some of the reasons are given below:
SOME BASIC FACTS ABOUT AGRICULTURE SECTOR
Total Area: 79.61 million hectare
Forest Area: 4.01 million hectare
Area not Available for Cultivation: 24.23 million hectare
Different Sectors of Agriculture:
Major crops
Minor crops
Forestry
Livestock (poultry, dairies etc)
Fisheries
Major Crops: Wheat, Cotton, Rice, Maize, Sugarcane and Tobacco.
Minor Crops: Oilseeds like Cottonseeds, Sunflower, Canola, and Pulses
like Masoor, Mung, Mash, and Potato etc.
Agriculture Inputs:
Fertilizer, Seeds, Mechanization, Pesticides, Irrigation etc.
Agriculture Outputs:
Different crops like Wheat, Rice, Cotton, Potato etc.
DEFINITION:
“Agriculture is that sector of economy which grows food and no0n food
crops for the population of the country”.
[CHAPTER 3] AGRICULTURE DEVELOPMENT 53
Basic Facts: (Source: Economic Survey of Pakistan 2018-19)
• Agriculture Growth rate: 0.9%
• Labour engaged: 39%
• Contribution to GDP: 18.5%
IMPORTANCE OF THE AGRICULTURE SECTOR:
1. Raw-Material to Industries:
Agriculture is a source of raw-material for the Industrial Sector, Textile
Mills, Sugar Mills, Paper Industries and Shoe Manufactures get the raw-material
from agriculture sector.
2. Source of Government Revenue:
A high proportion of revenue to the federal and provincial Government is
derived from the tax on land and agricultural products.
3. Expansion of Market:
Increase in agriculture sector means increase in agriculture market. This
sector encourages income of the farmers. Increase in income leads to the rise in
demand for various industrial products. This expansion leads a large-scale
extension in the market.
4. Better Living Standard:
About 64% of population is in agriculture sector directly or indirectly
involved in agriculture sector. Almost 43% of total workforce of Pakistan earns
their lively-hood from this sector.
5. Capital Formation:
This sector is also a source of formation of Capital. Increase in income
leads to increase in saving. This saving encourages investment. Investment
generates capital.
6. Use of Industrial Goods:
Promotion of agriculturalists income, expands the demand for industrial
commodities.
7. Rural Development:
Agricultural development has a significant impact on rural development. It
reduces poverty, increases basic facilities of life such as water, sanitation,
provision of health, educational facilities, infra-structural improvements.
54 ECONOMICS OF PAKISTAN

8. Source of National Income:

In our country, agriculture sector plays a crucial role by making a greater
contribution to the national income. At present agriculture sector’s contribution to
GDP is approximately 19 percent.
9. Improvement in Balance of Payment:
This sector restricts the import by producing things at home and expands
the export. This way, foreign exchange is saved and balance of payment position
is improved.
10. Foreign Exchange Earnings:
About 27% of the total exports consist of raw and processed agriculture
produce and 64% are based on agricultural raw materials. Pakistan gets the 45% of
the total foreign exchange by exporting the agricultural products like cotton and
rice.
11. International Recognition:
This sector has enhanced the status of Pakistan among the community of
nations by its performance. Its many products like rice, wheat, grains, etc., are
widely acceptable all over the world.
12. Source of Food:
This sector is responsible to provide the food to the people living in urban
and rural area of Pakistan. It provides a variety of food products.
13. Economic Development:
Economic development in Pakistan depends on the agricultural sector. The
performance of this sector ensures the rate of development in the country.
14. Source of Employment:
This sector ensures manpower for army, some manpower is shifted to the
industries.
15. Investment Opportunity:
This sector increases the income of the farmers. This increase in income
leads to saving. Saving encourages investment.
CONCLUSION:
Agriculture sector, no doubt, plays significant role in economic
development of the country. This sector is a source of employment creation,
revenue generation for the population and government. It meets foods and fiber
requirement of population. Without role of agriculture sector, economic
development is impossible.
[CHAPTER 3] AGRICULTURE DEVELOPMENT 55

Q.2 Discuss the problems of agriculture sector in Pakistan.

OR
Why yield per acre is low of agriculture sector in Pakistan?
OR
Why productivity of agriculture sector is low? Also suggest
measures to improve it.
INTRODUCTION:
Pakistan is an agricultural country but its agriculture sector has not
performed well so far because of different reasons. Pakistan, in spite of being
agricultural country, it imports wheat and some other agricultural products from
other countries because its agriculture is backward.
CAUSES OF BACKWARDNESS:
Following are the different causes of agricultural backwardness in Pakistan.
1. Less Availability of Market:
Farmers also face problems in searching market for their products. They
have to sell their products at very low price. Sometimes their product is wasted
due to unavailability of market.
2. Shortage of Capital:
Farmers are low-income people in Pakistan. They have not sufficient funds
to invest in agriculture. So they face finance problem and cannot improve
production.
3. Weak Infrastructure:
Farmers also face problems of backward infrastructure in agriculture.
Roads and other means of communication are not developed. Proper facilities are
not given to farmers for cultivation.
4. Use of Old Technology:
In Pakistan, Culture of mechanization has not developed so far. This factor
has also affected the productivity of agriculture. Farmers do not use machinery in
agriculture properly and frequently.
5. Lack of Education (Agriculture):
There is no proper arrangement of agriculture education at vast scale. Only
few colleges and universities have been established in the country and these
universities are insufficient. So farmers are not able to get agriculture education.
56 ECONOMICS OF PAKISTAN

6. Problems of Irrigation:
There is also a problem in availability of water. More water is wasted due
to poor irrigation system. We also cannot store water due to lack of dams. This
factor disturbs the production of agriculture.
7. Weak Pricing System:
Farmers in Pakistan are not able to receive maximum and uniform price of
their production. They have to sell their production at low price and they cannot
get proper reward of their efforts.
8. Less Use of Fertilizer:
Farmers do not use fertilizers and pesticides properly and in maximum
quantity. This factor affects the productivity of agriculture sector and farmers are
not able to obtain more income.
9. Uneconomic Land Holding:
In Pakistan majority of farmers have uneconomic land holdings. In our
country 52% of total farmers have less than 12 acres of land, 30% of farmers have
more than 12 acres of land, but less than 25 acres of land, 18% of total farmers
have between 50 and 150 acres of land.
10. Credit Problems:
Government of Pakistan has not given more importance to agriculture
sector. Many formalities are involved in taking loans from bank. Credit is also
misused by farmers for personal expenditure purposes.
11. Lack of Storage Facilities:
Farmers have not sufficient storage facilities to take care of their crops.
Some crops are of perishable nature like potato that required storage facility to
gain maximum price.
12. Uncertain Calamities:
Natural calamities like heavy rains, floods and earthquakes also limit the
development of agriculture sector. Due to this factor major part of production is
destroyed.
13. Soil Diseases:
Water-logging and salinity is also another factor that affects productivity of
agriculture. In this problem, the fertility of land is destroyed by more water under
the ground given to farmers for cultivation.
[CHAPTER 3] AGRICULTURE DEVELOPMENT 57
14. Plant Diseases:
Agriculture in Pakistan has been suffering from different diseases. These
diseases affect the productivity of agriculture and farmers cannot get maximum
production.
15. No Research and Development:
There is no research and development in agriculture sector. No new
techniques and methods have been introduced to minimize cost and maximize
output.
16. Lack of Modern Education:
Farmers in Pakistan also face knowledge problem. They have no
knowledge about different aspects of agriculture. They do not know the modern
techniques of production and new markets for their products.
MEASURES TO IMPROVE:
Problems of agriculture sector are of different types. These problems can be
solved by different solutions if the following steps are taken, the problems of
agriculture sector will be solved to great extent.
1. Availability of Capital:
In order to improve productivity, capital’s availability must be made
possible by:
(i) Providing Quality Seed.
(ii) Providing Quality Fertilizer.
(iii) Providing Quality Instructions.
2. Modern Methods:
In order to increase per-acre production, modern methods must be used and
traditional techniques must be discouraged.
3. Irrigation Facilities:
Dams should be constructed. Tube-wells must be installed. Wastage of
water should be stopped.
4. Use of Modern Technology:
We should use machinery like tractors, harvesters, tube wells etc. Modern
techniques and latest equipments are necessary to use for better production.
58 ECONOMICS OF PAKISTAN

5. Saving from Soil Erosion:

In order to avoid soil erosion following steps are necessary:
(i) Building Embankment by Cultivators.
(ii) Discouraging Uncontrolled Grazing.
6. Land Reforms:
In Pakistan 82% of the farmers hold less than 25 acres of land and 15%
hold 50 acres to 150 acres which only 3% hold more than 150 acres of land. In
order to avoid low productivity, land must be handed over to the people who are
interested in agriculture.
7. Credit Facility:
Agricultural development cannot be continued without providing credit
facilities to the farmers. Easy advancing loan system must be introduced.
8. Use of Fertilizer:
Better urea should be used because 15% to 20% production can be
increased with the use of urea.
9. Use of Quality Seeds:
Govt. should take all possible steps to make availability of good seeds to
the farmer to increase the quality of agriculture production.
10. Economic Land Holdings:
The best remedy is that sub-division and fragmentation of land must be
stopped. A reasonable size of land holding is very important. It increases the
productivity.
11. Establishment of Agriculture Market:
To organize and manage, agriculture market on modern lines, is also
helpful in getting high level of production in agriculture sector.
12. Research and Development:
For promotion of agricultural productivity, it is essential to spread
education and research in agriculture sector.
[CHAPTER 3] AGRICULTURE DEVELOPMENT 59
13. Overcome Soil Diseases:
This is a mega problems being faced by the farmers. This can be controlled
only by:
(i) Installing Tube-wells.
(ii) Concreting the Canal Sides.
(iii) Construction of Water-Channels for Outlet of Flooded Water.
14. Consolidation of Land:
Lands must be consolidated for modern implementation.
15. Plant Protection:
The farmers should use pesticides in order to save their plants from
different diseases. The use of pesticides will help for smooth growth of crop.
CONCLUSION:
From the above discussion it is clear that agriculture sector in Pakistan is
facing number of problem that are hindering its development.
If the above steps are taken by the government and farmers. The maximum
problems of agriculture will be solved and it will help in increasing agricultural
productivity.
Q.3 Define cooperative farming. Discuss its importance and causes
of failure in Pakistan.
OR
What is cooperative farming? Cooperative farming has not been
successful in Pakistan. Do you agree or disagree with above
statement?
INTRODUCTION:
In Pakistan, individual farmers carry on agriculture. On traditional ways
that restricts the development of sector. Government has been trying to improve
the condition of sector by introducing new methods and techniques. Cooperative
farming is also a modern technique to develop agriculture sector.
DEFINITION:
“Cooperative farming is a voluntary organization in which farmers
combine or pool their resources in order to carry out different agricultural
operations with help and for common benefit”.
60 ECONOMICS OF PAKISTAN

ADVANTAGES OF COOPERATIVE FARMING:

1. Agricultural Development:
Cooperative farming brings more prosperity of agricultural sector by
increasing per acre yield and by increasing income of farmers.
2. Training Programmes:
In cooperative farming, management conducts different programmes for
farmer’s training. In these programmes, farmers are educated about agriculture
sector and trained for different agricultural operations.
3. Employment Opportunities:
Cooperative farming also generates employment opportunities for farmers.
In cooperative farming, for management different societies are formed that
provide employment.
4. Credit Facilities:
Financial institutions do not hesitate to give credit to cooperative farming
societies, because these societies enjoy good credit standing than individual
farmers.
5. No Shortage of Funds:
In cooperative farming, farmers combine their sources and they meet their
needs collectively. So there is not shortage of finance like individual farmers.
6. Increase in Output:
In cooperative farming, due to combine effort of farmers, all agricultural
operations are carried out in time and properly and this factor increases output.
7. Use of Farm Mechanization:
Farm mechanization can be adopted very easily in cooperative farming
because of big pieces of land. Use of machinery becomes difficult and costly on
small pieces of land.
8. Consolidation of Land:
Cooperative farming is a good technique for consolidating small land
pieces of small farmers where these farmers work together.
9. Developed Brotherhood:
In cooperative farming, farmers work together that promotes brotherhood
and affection among farmers. This is social benefit of cooperative farming.
[CHAPTER 3] AGRICULTURE DEVELOPMENT 61
10. Supply of Inputs:
In cooperative farming, there is easy supply of inputs like seeds, fertilizers,
pesticides, water and agricultural machinery because of collective and combine
effort of all members.
CAUSES OF FAILURE OF COOPERATIVE FARMING:
In Pakistan, cooperative farming has not been a success so far. It has failed
due to following reasons:
1. Element of Dishonesty:
Farmers think that there are more chances of fraud and dishonesty in
cooperative farming. Due to this factor also cooperative has not been successful in
Pakistan.
2. Lack of Cooperative Spirit:
Our farmers have no cooperative spirit that is necessary for cooperative
farming. These farmers have quarrelsome nature and they cannot be successful in
this type of farming.
3. Rough Attitude of Govt.:
Government has not sincere attitude to promote cooperative farming in
country because government does not give too much incentives to farmers for this
type of farming.
4. Attachment with Land:
Farmers have very strong affiliation and attachment with land. They are not
ready to give up ownership of land for cooperative farming.
5. Unable to Meet Formalities:
Farmers avoid official formalities that are required and involved in
cooperative farming. These formalities discourage farmers to carry on cooperative
farming.
6. Illiteracy:
Majority of farmers is illiterate and they did not know about cooperative
farming and its benefits. They do not know about application of cooperative
farming in different countries. So they hesitate to join cooperative farming.
7. Farmer’s Attitude:
In Pakistan, farmers have no attitude to work in corporate sector. They
hesitate to join cooperative farming. They want to work individually and
independently without any organization.
62 ECONOMICS OF PAKISTAN

CONCLUSION:
Cooperative farming is a good technique to improve performance of
agriculture sector in Pakistan. But there are some problems that should be remove
first by the government and farmers and after that it should be adopted in Pakistan.
Q.4 What is mechanization of agriculture or farm mechanization?
Give your arguments for and against mechanization of
agriculture in Pakistan.
OR
Discuss the impact of farm mechanization in agriculture of
Pakistan.
Farm mechanization is one of the packages of green revolution. It was
introduced in Pakistan during 60’s. It implies the use of mechanical technology in
different farming operation like, sowing, harvesting, watering, spraying, etc.
DEFINITION:
“Mechanization of agriculture means use of modern machinery and
technology in agriculture”.
TYPES OF TECHNOLOGY:
1. Mechanical Technology:
Like Tractor, thrasher, bulldozers, etc.
2. Hydrological Technology:
Tube-wells.
3. Chemical Technology:
Fertilizers and pesticides.
4. Biological Technology:
High yielding varieties of seeds
ARGUMENTS FOR FARM MECHANIZATION OR ADVANTAGES OF
FARM MECHANIZATION:
1. Increase in Farmer’s Income:
Due to mechanization, the yield per acre increases, wastage of crop is
controlled. Because of this factor, farmers earn more profit and their income
increases and their living standard also increases.
[CHAPTER 3] AGRICULTURE DEVELOPMENT 63
2. Agriculture Development:
By maximum use of machinery in agriculture sector, agriculture
productivity is increased, more agro-based and agriculture machinery industry is
established. More fertilizers and pesticides companies are established. All this
leads to more agriculture development.
3. Overcome Plant Diseases:
Almost 15% of our every crop is wasted due to different plant diseases.
This wastage can be avoided if different pesticides are use in time. So plant
diseases can be controlled by chemical mechanization.
4. Control on Soil Diseases:
Water-logging and salinity is another serious problem in Pakistan. Due to
this problem more than 1.5million acres of land is not cultivated. By installing
more tube wells in waterlogged area can also solve this problem.
5. Supply of Food:
Food shortage is very serious problem in our country. Due to process of
mechanization when High yielding Varieties of seeds are used, the production of
crop increases. Our problem of food can be solved if these types of seeds are used.
6. Saving of Time:
Because of maximum use of machinery in Pakistan, much time of farmers
is saved. For example when for ploughing land, animal power was used, it usually
takes many hours but by using tractors this can be done in very short time.
7. Encourages Multiple Cropping:
Due to mechanization of agriculture, farmers can get more than one crop at
onetime; this is only possible with the use of quality seeds and more chemical
fertilizers. In this process one major and one minor crop is cultivated at the same
time.
8. Large Scale Cultivation:
Most of our land area is composed of mountains, hills, uneven and barren
land that is not suitable for cultivation. This area can be made suitable for
cultivation by use of machinery like bulldozers etc.
9. Increase in Output:
It has been proved by research that by using high yielding varieties of
seeds, fertilizers and other technology, the output of crop always increase.
64 ECONOMICS OF PAKISTAN

10. Modern Irrigation:

Due to mechanization, more tube-wells are installed in the country. These
tube wells together with canal system provide sufficient water for irrigation
purpose in the country.
ARGUMENTS AGAINST OR DISADVANTAGES OF FARM / HURDLES
FOR MECHANIZATION:
Mechanization of agriculture has also some disadvantages that are as under.
1. Fear of Unemployment:
By use of modern machinery and technology, most of agriculture labour
becomes free. They are of no use in agriculture. This increases the problem of
unemployment in country.
2. Lack of Energy Resources:
Our country has insufficient power resources that restrict maximum use of
machinery in agriculture sector. Petrol and diesel are too much costly that farmers
cannot afford. Electricity is also not available everywhere.
3. Small Land Holdings:
In Pakistan, 52% of total farmers have less than 12 acres of land. They
cannot use modern machinery and technology because it increases cost for them.
So majority of farmers cannot apply mechanization due to small land size.
4. Lack of Workshop Facilities:
Due to non-availability of workshops in rural areas, most of the time is
some waste. Farmers have to wait for long time to get their machines in working
conditions.
5. Lack of Credit:
Sufficient credit is not available to farmers to purchase modern and new
technology. So due to shortage of finance, farmers cannot adopt mechanization.
6. Adverse Effect of Technology:
According to one research, it has been observed that chemical technology
means use of fertilizer and pesticides has adverse after-effects like it creates more
plant diseases and human diseases.
7. Lack of Technical Knowledge:
In Pakistan, majority of the farmers have no technical know-how to manage
machinery. They suffer financial as well as loss of lives due to lack of usage skill.
[CHAPTER 3] AGRICULTURE DEVELOPMENT 65
8. Transfer of Capital:
Due to mechanization process, capital from other sectors like industry is
transferred to agriculture for purchase of costly equipments. In this way other
sectors suffer.
9. Increase Social Disparities:
Due to mechanization of agriculture, rich farmers become richer and poor
farmers become poorer. So the gap between rich and poor increases which leads to
disturbance in society.
10. Poor Farmers:
In Pakistan, income of farmers is very low. They have only subsistence
level of income. So they are not able to purchase costly machinery.
CONCLUSION:
Mechanization is a good technique to improve performance of agriculture
sector in Pakistan. But there are some requisites that should be fulfilled first by the
government and farmers and after that it should be adopted in Pakistan.
Q.5 Define agriculture price policy. What are the problems which
affect the agricultural price policy?
OR
Discuss agriculture price policy and explain what objects are
kept in mind while formulating it. Also discuss the problems
which affect the agricultural price policy.
INTRODUCTION:
Agriculture price policy has very important role in development of
agriculture sector. Through this policy, government of the country influences
agricultural inputs and output prices. This policy helps government to achieve its
different objectives set for agriculture sector.
DEFINITION:
“Agriculture price policy refers to the determination of price of
Agriculture-Inputs and outputs”.
“Agriculture price policy is a method for deciding prices of agricultural
inputs like seeds, fertilizers and other things as well as the outputs like rice,
pulses, wheat etc”.
66 ECONOMICS OF PAKISTAN

INSTRUMENTS OF PRICE POLICY:

(a) Change in output price.
(b) Change in input price.
(c) Investment in providing subsidies.
(d) Direct intervention by the government.
OBJECTIVES OF AGRICULTURAL PRICE POLICY:
Following are the main objectives of agricultural price policy:
1. Use of Quality Inputs:
Price policy plays main role in determining the prices of inputs.
Government takes care of both farmers and producers of these inputs. Government
neither sets very high price nor very low price, a balanced price set that is useful
for both sides.
2. Better Price of Trade:
Pakistan exports primary goods like raw-material whose prices are
fluctuating and imports finished goods whose prices are increasing. Therefore
government provides information to increase the production of those crops whose
prices and demand are increasing.
3. Increase Investment:
Government inherences the prices of agricultural inputs and outputs to
encourage investment. So agricultural price policy is very useful.
4. Multiple Crops:
Another object of price policy is that there should be balanced cropping
pattern. Balanced growth various sectors of the economy is necessary for economic
development. To balance cropping, pattern is necessary to develop agricultural sector.
5. Fair Distribution of Income:
Rural areas are under developed and per capita income of people is very
low but urban areas are developed and per capita income is high. So government
tries to remove rural urban disparities through the price policy. Through price
policy, the living standard of rural people is also improved.
6. Increase in Income:
In agricultural sector, there is unemployment and real per capital income is
very low. So government through agricultural price policy provides subsidy on
inputs and outputs to increase their income.
[CHAPTER 3] AGRICULTURE DEVELOPMENT 67
7. Production of Substitutes:
Another objective of agricultural price policy is self sufficient in import
substitution. In previous years, we were importing wheat and sugar and not we
have become self-sufficient.
8. Increase in Exports:
The object of price policy is to increase the output of exporting crops.
Government influences the prices of these crops to increase their production either
by subsiding inputs or by increasing minimum prices.
9. Increase in Production:
Its main object is to increase the agricultural output. We are self sufficient
in wheat and sugar only due to agricultural price policy. By increase in prices, the
agricultural production is increased because we earn high profit with increase in
production.
10. Agriculture Development:
Price policy helps agriculture sector in money aspects. Effective agriculture
price policy helps in development of agriculture sector.
PROBLEMS FOR AGRICULTURAL PRICE POLICY:
Following are the main problems of agricultural price policy:
1. Plants Diseases:
About 15% our agricultural production is destroyed due to pests and
diseases. To control these diseases, chemicals and medicines are required which
also increase the cost of production. So price policy cannot be successfully operate.
2. Farmer’s Poverty:
Due to poverty, farmers sell their output immediately in our country, after
harvesting on little profit or sometimes without profits.
3. Statistical Survey:
Statistical surveys in this regard are not authentic. Defective planning due
to inadequate statistical reports, surveys and information creates problems in
adopting effective price policy.
4. Uncertain Climate:
Unpredictable climate of Pakistan badly affects the agricultural productions,
so price policy cannot be successfully operated.
68 ECONOMICS OF PAKISTAN

5. Outdated Planning:
Agricultural price policy is also not successful in Pakistan because in our
country, planning is based on outdated facts and figures. Data collected in our
country is not valid also. So planning based on this data is always defective.
6. Lack of Education:
Another problem of agricultural price policy is illiteracy of farmers.
Majority of our farmers are not educated so they are not able to know the
government’s policy and not aware of its basic features.
7. Market Problems:
Agricultural price policy is also not successful because we have very few
number of markets to sell agricultural products. These markets are not well
organized. Intermediaries and commission agents’ exploit the sellers.
8. Outdated Techniques:
One major problem that does not make agricultural price policy a success is
use of old methods of cultivation in our country. Due to these methods, the output
of agriculture sector remains low.
9. Lack of Basic Facilities:
There is a lack of basic facilities due to which farmers are not able to
increase the productivity of sector. These basic facilities include road and other
transport facilities, communication facilities, etc.
10. Political Instability:
Rapid change in government also creates problems in adopting an affective
price policy and objectives of price policy could not achieve.
CONCLUSION:
Agricultural price policy in Pakistan is not based on ground realities;
therefore its success is restricted. This policy is also not successful because of
defective planning. If government is sincere to achieve its objectives, then change
should be made in system and planning.
Q.6 What is agricultural marketing? What are the main defects of
agricultural marketing in Pakistan?
OR
What are the problems of agricultural marketing in Pakistan?
Also suggest measures to improve it / steps taken by the govt.
[CHAPTER 3] AGRICULTURE DEVELOPMENT 69
AGRICULTURAL MARKETING:
All the activities by which agriculture-produce is brought from farm to the
final buyers are collectively known as agricultural marketing agriculture-cultural
marketing includes the activities like processing, storage, grading, wholesaling,
retailing and transportation.
“In general we can say that marketing means to create environment for
sale.”
ESSENTIALS OF GOOD MARKETING:
In order to sell goods for the best advantage of the producers, several
conditions must persist:
1. Quality of Produce:
Quality of the produce should be good. If produce of good and bad qualities
are mixed as has been the case in Pakistan, the reputation of the whole produce
suffers and the fair price is not obtained.
2. Staying Power:
The seller shall have staying power so that he may get reasonable income
by selling at fair price.
3. Means of Transport and Communication:
Advanced means of communication and transportation should exist. The
cultivator should have easy access to the market.
4. Market at Convenient Distances:
Markets should be at convenient distances form the production village. If
the markets are not available at convenient distance from the cropped areas, then
farmers will prefer to sell the goods in his own village on comparatively low prices.
PROBLEMS OF AGRICULTURAL MARKETING / DEFECTS IN
AGRICULTURAL MARKETING:
1. Weak Infrastructure:
Our means of transportation are insufficient. So regular supply of product is
not possible. The villages are not properly linked to the markets.
2. Existence of Middleman:
The middlemen takes a big share of incomes of farmers without doing
anything. The farmer borrow the money from them and sell their products at low
prices.
70 ECONOMICS OF PAKISTAN

3. Old Weights and Measures:

Traders in our markets use defective measures for their benefit. Over
weight and under weight are used during buying and selling.
4. Poor Quality Product:
Our products are of interior quality. The poor quality is due to use of
inferior seeds, natural calamities, defective harvesting etc.
5. Lack of Storage Facilities:
The storage facilities in markets are inadequate seller cannot store and wait
for a higher price of the product.
6. Rough Grading System:
The commodities which are graded and standardized have higher price in
the market. In Pakistan mixing of interior and superior qualities are common. It
therefore, possess a problem of marketing both in domestic and foreign markets.
7. Problem of Product Collection:
The collection of produce from small farmers is very expansive and
difficult process. So it is a great problem of marketing.
8. Poor System of Revenue:
Our farmers have to pay land revenue after the harvesting of crop. So it
forces the farmers to sell their produce at low price.
MEASURES TO IMPROVE THE AGRICULTURAL MARKETING:
1. Market Advisory Committee:
Market advisory committees at district level should be set up to provide
technical advice to co-operative marketing societies. The officers of co-operative
and agricultural department should be the members.
2. Enhance Marketing Societies:
Co-operative marketing societies should be set up in villages and the
farmers should be induced to become the members of these societies.
3. Availability of Storage Facilities:
The government should provide the loan to the farmer for the construction
of stores. The government should also construct the stores.
4. Standard Weights and Measures:
The inspectors should strictly check the weight and measures used in the
markets, so that unfair trade practices could be swept away.
[CHAPTER 3] AGRICULTURE DEVELOPMENT 71
5. Use Transportation Facilities:
There should be improvement in transportation facilities because it plays a
major role in the organization of agricultural markets, with better transportation
facilities, the product can arrive in a shorter time and without losses.
6. Reforms in Markets:
The government should improve the markets system in the markets. Strict
law should be introduced. The prices of agricultural products should be checked
by the inspectors.
7. Establishment of Organized Markets:
As the old markets are getting congested so new market should be
established. These markets should be built near the production centers.
8. System of Credit:
Credit facilities should be provided to the members’ means farmers for the
purchase of inputs and agricultural machineries. In this way they can increase their
productivity.

Q.7 Define land tenure systems. Discuss defects of land tenure

system in Pakistan.

The agricultural prosperity of Pakistan is strongly attributed to its proud

tenants. Our tenants have been working hard in order to make Pakistan self
sufficient in agriculture. But due to some unavoidable circumstances, their efforts
are still result-less. The main problem in its way is our traditional agricultural
system. Land tenure system in Pakistan is unable to play its role in determine the
right of ownership of land. Now we discuss this land tenure system in its right
contact.
“Land tenure system refers the right of use or right of ownership of land.”
DEFINITION:

The word land has been taken from the word “Tenu” which means
ownership. So land tenure system is land’s ownership system.
“System, which clearly describes the right of land’s holding and its
cultivation.”
72 ECONOMICS OF PAKISTAN

LAND TENURE SYSTEM’S IMPORTANT COMPONENTS:

A country’s land tenure system analyzes the following aspects:
1. Who owns the land?
2. Who cultivates the land?
3. What is the nature of contract?
4. What are the responsibilities of Government?
LAND TENURE SYSTEM IN PAKISTAN:
In Pakistan, this system is not similar but different in different areas. Which
are as under
1. State Landlordism:
This system refers all those land, which are under the ownership of the
state. These lands are also called “Crown Lands”.
Feature of this system:
(i) Government offers land for cultivation to private owners.
(ii) Farmers pay a specific amount of money for the use of land.
(iii) The cultivator cannot transfer the land to any one.
(iv) Under certain conditions, these lands can be transferred with the permission
of Government.
2. Private Land Lordism:
This land tenure system can be divided into two types. (i) Big Landlords,
(ii) Small Landlords.
(i) Big Landlords:
The rights of ownership are with big landlords. These are absentees, as their
land is cultivated by the tenants. These tenants are being exploited and are living
in adverse condition.
(ii) Small Landlords:
Small landlords are the uses of their land. The rights of ownership are with
them.
[CHAPTER 3] AGRICULTURE DEVELOPMENT 73
3. Royotwari Tenure:
This system was introduced by the British rules in Singh. Features of this
system are:
(i) The state lands were offered to the individual farmers.
(ii) A farmer has complete liberty for the use of land.
(iii) A farmer can sub-let or transfer the land.
(iv) A nominal-rent is paid by the framed to the Government.
4. Mahalwari System:
This system is called Numberdari System. This system was introduced in
Punjab and N.W.F.P by the British. Under this system, all the people live in a
village owner’s of their small holdings. They are jointly responsible for the
payment of the Government. This payment is made through the village Numberdar.
5. Peasant Proprietorship:
The peasant proprietors are the owner of small units of land. They cultivate
it with the help of their families. They are individually responsible for the payment
to the Government. They deposit their revenue through Numberdar.
DEFECTS OF LAND TENURE SYSTEM IN PAKISTAN:
Pakistan inherited land tenure system from British rule. British rulers
awarded. These Jagirs and big land estates to their loyal servants. This is the
reason why it is defective and creating social economic and political problems. Let
us examine the problems of land tenure system in Pakistan.
1. Unequal Distribution of Land:
Present land tenure system encourages unequal distribution of land.
According to an agricultural report, only 20% of land is owned by landowners.
This system is the main cause of low productivity in Pakistan.
2. Political Problems:
Big landlords dominate in the politics of Pakistan. They misuse their power
and contacts few their unfair activities.
3. Emergence of Absentee Landlords:
Big landlords are not interested in the rise of agriculture product as they
live in big cities. Someone uses the land. They don’t care efficient use of land.
74 ECONOMICS OF PAKISTAN

4. Incentive-less System:
This system does not provide any incentive to the tenants. They have to use
defective seeds and fertilizers. This leads to low productivity.
5. Landlords Group:
This type of system promotes the interest of certain powerful group. This
powerful group creates problem in social, economic and political side of the
country.
6. Exploitation of the Tenant:
Landlord exploits his tenant due to the pressure of population and land
hunger in the country. The tenant was at the mercy of the landlord because of his
poverty.
7. Social Evils:
Landlords possess light social status in society and they misuse it and
promote social evils in the society.
8. Lack of Interest:
Big landlord does not present on their lands. Farmers do not get any
incentive for more output. So their interest in the agricultural productivity remains
low.
CONCLUSION:
Although land reforms were introduced in Pakistan but they were not
implemented in true spirit. These reforms did bring impact on economy but not too
much.
Q.8 What is meant by land reforms? What are its objectives? Also
write down the impact of land reforms adopted in Pakistan.
In Pakistan, big landlords who do not put hard effort to promote agriculture
occupy most of agricultural land area. The need of the time was to introduce
reforms in land tenure system of Pakistan. Land reforms simply refer to the
concept of redistribution of land.
CONCEPT OF LAND REFORM:
This concept is used to describe the entire legal, institutional and social
changes designed to eliminate large concentration of land ownership, adjust
landlord and tenants relation, and provide many supplementary services.
[CHAPTER 3] AGRICULTURE DEVELOPMENT 75
INSTRUMENTS OF LAND REFORMS:
Following are the main instruments of land reforms:
(a) Land Re-distribution.
(b) Tenancy Reforms
(c) Land Settlement.
(a) Land Redistribution:
It means reallocating the ownership of land among the formers. It has three
components.
(i) Compensation (ii) Exemption (iii) Distribution
(b) Tenancy Reforms:
This instrument refers rules regarding legal contracts between landlord and
tenants. It rejects feudalistic tenancy.
(c) Land Settlement:
This refers release of state land for settlement or resettlement of land
abandoned by farmer owners.
OBJECTIVES OF LAND REFORMS:
Following are the main objects of land reforms.
1. To eliminate agro-monopolies.
2. To control the absent landlordism trend.
3. Redistribution of land.
4. To control the tenants exploitation.
5. To improve the agriculture sector.
6. To relieve the tenants from the tax burden.
7. To increase the income of middle income group.
IMPACT OR ADVANTAGES OF LAND REFORMS:
The impact of these land reforms can be stated as under.
1. Payment of Revenue:
These land reforms have made good impact on the revenue over the land.
Due to land reforms, Government revenue increases over land, which are being
cultivated by the private farmers.
76 ECONOMICS OF PAKISTAN

2. Magic of Ownership:
When landless farmers got the ownership of land, their involvement in
agriculture business increases. This step has made a tremendous rise in the
productivity of agriculture.
3. Decrease in Unemployment:
Land reforms have created a lot of chances of employment in rural areas.
This rise in employment has made a great contribution in solving their economic
problems.
4. Agricultural Tax:
Another benefit of the land reforms is the easy imposition and collection of
Agricultural Tax.
5. Reduction in Size of Land Holdings:
Due to land reforms, land’s size is made economical and reduces in size of
land holdings.
6. Increase in Income:
Land reforms have made good impact as the income of middleman. They
have improved their living standard.
7. Increase in Demand:
Land reforms increase the earnings of farmers. So their demand of
manufactured goods is also increased.
8. Relief from Exploitation:
It is because of land reforms, the tenants are relieved of the exploitation of
the big landlords. They cannot be ejected easily.
9. Elimination of Big Landlord Superiority:
Land reforms reduce the superiority of big landlords and also reduces. The
unfair distribution of wealth.
10. Relationship between Landlord and Tenants:
Land reforms have equated a good and comprehensive relationship between
landlord and tenants. Both do not believe in exploitation but good working
relationship.
[CHAPTER 3] AGRICULTURE DEVELOPMENT 77

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