‘Corporates will ruin agriculture’

By GOHAR ALI KHAN
Published in The Express Tribune on January 23, 2025

KARACHI:

A gaggle of companies entering the agriculture sector has sparked calls from sustainable agriculture experts for these entities to prioritise food security, lower soaring agricultural prices, and support small growers by improving crop yields with advanced climate-resilient seeds and technology. Experts strongly opposed exploitative practices, urging companies to avoid predatory approaches that harm small farmers.

Speaking to The Express Tribune, experts said that producing climate-resilient seeds, increasing crop yields, reducing farming costs, and implementing preservation processes are critical for the country. They criticised attempts by some companies to exploit cheaper lands, regain commercial influence and swindle local farmers of their produce have failed. They note that such practices cause consumers to face skyrocketing costs in local markets, while the situation for struggling peasants continues to deteriorate.

Experts also highlighted the potential impact of global warming, warning that rising temperatures could increase the spread of tropical parasitic diseases, threatening crops and food security.

Sindh Chamber of Agriculture Senior Vice President Nabi Bux Sathio criticised companies entering the agriculture sector with vested interests rather than a genuine commitment to promoting the sector, ensuring food security and supporting the country’s farmers.

“Capitalists are entering the agriculture sector for two reasons: to leverage government incentives such as subsidies and facilitation of loans and to sign export deals with food-insecure nations. This results in the export of thousands of tonnes of wheat, rice, sugar, and vegetables for profit. This will have negative repercussions as it deprives locals of indigenous produce while they face economic challenges brought on by inflation, unemployment, and poverty,” Sathio said.

He clarified that he does not oppose corporate involvement in agriculture but stressed that companies must first meet local demands and stabilise crop prices. “Essential staples like onions, are often priced high at Rs300-350 per kilogram, and the same is the case with tomatoes and other crops. The poor are unable to purchase fruits,” he said.

Sathio also criticised the government’s prioritisation of infrastructure and facilities for corporate growers over small farmers in rural areas as unjustified. “We urge the government to support existing farmers instead of promoting corporations that have already failed in industrialisation and are now turning to agriculture. Developing climate-resilient seeds is crucial to counter the impacts of climate change. Otherwise, these multinational companies will pocket incentives and leave without benefiting the country,” he warned.

Ali Palh, Advocate and President of the Small Growers’ Organisation—Sindh Agriculture Research Council (SARC), criticised corporate agricultural ventures following a case-study prepared by a group of companies developing the agriculture of the country, describing them as adventures of elite businesses where agriculture is only a small component.

“These companies set up farms like small islands but fail to meet local demands. Common growers are the ones fulfilling the country’s requirements,” Palh said. He warned that corporate farming models cater only to the elite and foreign markets, leading to unemployment among growers and the loss of their lands.

Palh proposed cooperative farming as a solution, where farmers contribute land and industrialists provide investment. “This partnership benefits both parties. Corporations should collaborate with landlords to improve land productivity, increase yields, and grow the economy. This cooperative model ensures fair wealth distribution and strengthens the corporate sector’s image,” he suggested.

He added that the corporate sector could further support farmers by helping them establish urban markets, address climate change challenges, and improve water resources and infrastructure.

Sindh Abadgar Board President Syed Mehmood Nawaz Shah highlighted the reliance of corporate agriculture on banking systems, contrasting it with traditional farmers who invest their own resources.

“Growers bear losses from natural disasters, such as the Covid-19 pandemic and the devastating 2022 floods, from their own pockets. Without government subsidies or financial support, advanced and costly machinery alone cannot revolutionise the agricultural landscape with better returns,” Shah explained.

He noted that local production of tomato paste could save foreign exchange, but it remains unclear whether such initiatives would lead to lower prices for local consumers, as they still face high rates.

Shah also pointed out that there isn’t a world of a difference between the yield of Pakistan’s crop compared to those of countries like India, the US, and EU nations. There is only only a 15-20% difference as they use genetically modified organism (GMO). He suggested that providing local farmers with GMO seeds could eliminate this gap.

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