HORTICULTURE IN

PAKISTAN: PLANNING
PERSPECTIVE
Presentation at International Seminar on Horticulture and

Agribusiness in Developing Countries at UAF

By

Dr. Muhammad Jameel Khan

Advisor (Agri. Planning)
Planningg Commission
(17--03
(17 03--2011)
 DEVELOPMENT APPROACH

 Private sector as growth driver in open market

environment that rewards productivity,
y innovation and entrepreneurship
efficiency, p p
which ultimately promotes growth, prosperity
and development
 Government protects public interests and rights,
provides public goods, enforces laws, penalizes
exploitative
l i i practices,
i and
d operates with ih
transparency and accountability
 DECELERATION IN AGRICULTURE
SECTOR GROWTH

Year Average Annual

Growth Rate
(%)
1980’s 5.4

1990’s 4.4

2000’s 3.2

Source: Pakistan Economic Survey 2009-10

2009 10

3
 LABOR PRODUCTIVITY IN
AGRICULTURE -2000
2000--2007
ANNUAL GROWTH
Country
RATE (%)
Pakistan 0.2
02
India 2.2
China 6.4
Bangladesh 1.4
Source: Asian Productivity Organization, Productivity Data Book, 2010

• Total Factor Productivity had not improved

• Gross Capital Formation as % of Agricultural Sector GDP declined
from 15.4 % in 6th Plan to 6.25 % in MTDF (2005-10)
 HORTICULTURE SECTOR FEATURES

 World Development
p Report
p 2008
 Higher income
 Higher Employment (twice the labour input relative to cereals)
 Improved
p resource productivity
p y ((relative to cereals 10 fold increase in
return on land)
 Higher multiplier effect (off-
(off-farm jobs in processing, packaging, and
marketing)
 Diversification to High Value Crops (Horticulture) presents an
opportunity
 Cropping pattern relatively static (Horticulture area increased
from 4 to 7 % in last 2 decades)
 Management, Capital, and Skills intensive
 CROPPING PATTERN
(%)
T t l Cropped
Total C pp d A Area
Year (Million hactares)
Food Crops Cash Crops Pulses Oilseed Vegetables Condiments Fruits Others

1989--90
1989 24.46 56 18 7 2 1 1 2 13

2008--09
2008 23.80 58 17 6 2 2 1 4 10

Source: Agriculture Statistics of Pakistan 2008-

2008-09, MILFA

Food Crops: Wheat, Rice, Jawar, Maize, Bajra, and Barly

Cash Crops: Sugarcane, Cotton, Tobacco, Sugerpeet, Guarseed
Pulses: Gram, Mung, Mash, Masoor, Mattar, Other Kharif and Rabi Pulses
Oilseed: Rapeseed and Mustard, Sesamum, Ground line Seed, Castro Seed and other Oil Seed
Condiments: Chillies, Onion, Garlic, Coriander, Turmeric and Ginger
 MAJOR ISSUES IN
HORTICULTURE
T T SECTOR
T
 Low Yields
 Management Practices and High Post Harvest
Losses
 Competitiveness
 Inefficient Marketing System
 Inadequate Infrastructure
 Quality Standards / Certification System
 YIELD COMPARISON OF IMPORTANT HORTICULTURE CROPS (2008)

Yield Tons Per Hectare

Country
Apple Banana Citrus Mango/ Guava
Australia 13..5
13 15..5
15 19..0
19 7.2
Brazil 29.
29.6 13..9
13 22.
22.0 16
16..8
China 14.
14.9 25..8
25 9 .0 8.8
Egypt 9.7 18.
18.8 9 .6 3.5
India 7.6 35
35..9 9 .5 6.4
Israel 30..5
30 46..9
46 29..0
29 30..1
30
Italy 40..4
40 23..3
23 24.
24.7 -
Pakistan 6.8 4.4 10..6
10 10
10..6
Philippines - 19.
19.8 9 .5 4.7
Spain 20..0
20 35..6
35 20.
20.0 -
USA 31..3
31 17..7
17 34..0
34 4.4
Vietnam - 14.
14.3 - 7.1
Source: FAO Stat
POSTHARVEST LOSSES IN FRUITS
Postharvest Losses
Fruits Value
%age
($ million)
Citrus 14.6 27
Mango 25.2 55
Date 34.6 45
Guava 34.5 38
Banana 32.1 9
Apple 13.6 15
Others 25 125
All Fruits 24.5 314
(Ibrahim and Anwar, UAF 2004)
EXPORT PRICE OF MAJOR HORTICULTURAL
PRODUCTS: (2007)
($ Per Tonne)
Country Apple Apric Banana Dates Dry Mango, Orange Potato
ot Apric Guava
Australia 1364 4067 4000 1927 8428 0 981 478
Brazil 612 0 238 5000 0 775 376 185
Chile 713 1282 1111 1700 1515 0 747 535
China 503 516 583 1558 2140 1955 441 221
Egypt 916 718 229 641 0 614 365 277
India 247 325 379 683 706 679 226 135
Italy
It l 952 1890 897 4466 5067 3997 759 515
Pakistan 414 564 153 368 1816 323 255 180
Slovenia 396 1074 924 4947 4500 2094 572 511
S.Africa 635 742 931 6172 4432 0 389 276
Spain 716 1784 864 3612 1975 1791 793 440
Thailand 710 0 360 830 2905 561 472 420
Turkey 398 741 1800 9802 1628 0 382 115
USA 982 1702 552 5788 5625 0 793 454
 EXPORT VALUE OF FRUITS
AND VEGETABLES:
T 2008
Million Dollars

Country / Region Amount

World 167 997

167,997
34,926
Asia
((20.8))
7,630
South East Asia
(4.5)
199
Pakistan
(0.12)
Figures in parenthesis indicates percentage of World
 FLORICULTURE
 Area under Floriculture in Pakistan = 17,000
, Acres
 World Cut Flower Production = 3593 Million Sticks
 Pakistan Export of Floriculture Products
 Fresh = 24 Tons
 Dried = 115 Tons
 Pakistan Import of Floriculture Products
 Fresh = 185 Tons
 Dried = 16 Tons
 Highly specialized, Labour, Skills, and Capital Intensive
 Need controlled conditions to become competitive
 HORTICULTURE MARKETS
 Inadequate Numbers
 Public Sector run fruit / vegetable wholesale
markets controlled by powerful licensed dealers
 High Marketing Margins / Commission
 Inadequate Flow of Market Information
 Poor Infrastructure
INNOVATIVE HORTICULTURE
 Knowledge Based
 Linkages – New form of organizations and
institutional arrangements
 Demand Driven
 Enabling Environment and Policies
 PLANNING PERSPECTIVE FOR
HORTICULTURE
T T
 Reorientation of Horticultural Research
 Focused Research
 Innovation in:
 Financing (Competitive Grants)
 Linkages with Processing Industry
 Competitiveness
 Productivity and Quality Improvement
 Cool Chain
 Analytical Capacity
 Management Practices and High Post Harvest Losses
 Tree Density
 Irrigation
g / Nutrients
 Growers / Labour Skills Upgradation
 Specialized Extension
 Cool Chain Development
 Harvesting / Handling Techniques

Cont…..
 PLANNING PERSPECTIVE FOR
HORTICULTURE
T T
 Marketingg Reforms
 Level Playing Field for Private Sector
 Allowing Private Sector to Set Up Markets
 Cool Chain Development
p ((Rs. 13 Billion))
 Private Sector led (93 percent) (Pack Houses, Cold Storage, Refer Yards)
 Government 7 percent Testing Labs.
 Vertical Integration
 Market information Dissemination
 Quality Standards and Regulatory Arrangements
 Specification of Standards
 Testing / Certification Labs.
 Nursery Certification
 OTHER INITIATIVES
 PHDEC
 Mango Irradiation
 Citrus Orchard Registration and Global GAP Certification
 PAMCO
 Horticulture Policy
 Credit
 I
Incentives
i SStructure
 Institutional upgradation and Networking
 Producing for Export
 Contract Growing
 Promoting Processing
 Industrial Parks ((Common Facilities))