(Islamabad) June 22, 2008:The budget speech by Finance Minister Syed Naveed Qamar recognises the importance of agriculture as the backbone of the economy.
The budget 200809 envisages a growth of 5.5 per cent of GDP and four per cent in the agriculture sector against 1.5 per cent recorded in the previous year.
The budget recognises the use of fertilisers, particularly phosphatic (DAP). The subsidy on fertilisers is proposed to be increased from Rs25 billion to Rs30 billion. In the case of DAP, the subsidy will be raised from Rs470 to Rs1000 per bag. In the use of urea and DAP, it is very essential for the efficient use of these inputs that their ratio is main tained at least at 2:1 if not 1:1. In the past this ratio has been 3.5:1 or so.
The government should provide all possible facilities and financial resources to the farmers to enable them to adopt these new techniques which are costly. The farmers should be encouraged to grow less-water requirement crops. Research efforts to evolve drought resistant varieties should be given priority.
Availability of approved and certified seed is quite important input for raising productivity. At present, public sector provides only 33 per cent of the replaceable wheat seed (once in four years), 54 per cent of cotton and corn, and about four per cent of potato seed. The production of such seeds should be encouraged and supplied to farmers.
To increase the production of cotton, the B.T. varieties should be grown only after carrying out trial production under our local conditions.The growing of B.T. cotton has its advantages and disadvantages and should be viewed very carefully before taking a decision.
At present there is no system to produce B.T. seeds. What is happening is that seed of B.T. varieties is being smuggled from India and some other countries that have developed their own varieties, or made arrangements with international institutions from whom they have to import seed every year and at their determined prices. But the quality of seed that is being smuggled is not known.
B.T. varieties are hybrid ones and their seed have to be produced every year. Moreover, it is said that hybrid varieties are resistant to only one pest or disease, mainly the bollworm. Our cotton is being attacked by a variety of insects and diseases for which spraying becomes a must, which is a costly affair.
The National Institute of Biotechnology and Genetic Engineering (NIBGE) is said to be in the process of evolving B.T. varieties suited to our local conditions.This work should be encouraged.

There is a need for consolidation of holding to help improve the efficiency of inputs, like fertilisers, water, tillage, etc. Instead of stressing on land distribution under land reforms, other important issues, like the tenure system, cooperative marketing, supply of inputs through cooperatives and so on need to be considered.