about horticulture

1. Shahid Hussain Raja
Independent Consultant-Public Policy
www.sanoconsultants.co.uk
August 18,2013

2.  Introduction
 Horticulture Sector-Profile
 SWOT Analysis
 Issues and Challenges
 Recommendations
 Conclusions

3.  Despite its significance in agricultural growth, commercial
activities and poverty alleviation, the horticulture sector has
not received the attention it deserves.
 Its slow development reflects a weak policy and regulatory
framework, production and productivity problems, post
harvest losses, marketing problems and limited capital
investment.
 These problems have contributed to low quality standards,
minimal export of horticulture products, low rates of return
on investment that consequently fail to attract new
investment.
 This presentation explains the ground realities about
horticultural sector of Pakistan and suggests a strategy to
develop this sector to its full potential

4.  Despite its relative decline in formal economy in
percentage terms, agriculture is still dominant sector
in overall economic structure
 Pakistan’s survival and growth are directly dependent
on its agriculture due to its socio-political
interconnectedness and its economic and financial
linkages-backward and forward
 Its performance still dictates all our macro indicators -
GDP, Poverty, External Balance, Inflation etc

5.  Out of total area of Pakistan of approximately 80 million
hectares, about 58 million hectares have been surveyed
 The area under cultivation is 22 million hectares (38%) out
of which nearly 19 million hectares is irrigated; the rest is
rain fed
 The area under forest is 4 million hectares (7%) and the
balance surveyed area 8 million hectares can be classified
as the cultivable waste
 Coupled with suitable climate and availability of fairly good
water resources, agriculture has been the major activity for
centuries in this part of the world

6.  Agriculture sector of Pakistan comprises four sectors
- livestock, crop, forest and fisheries
 Livestock contributes 56% of the total agriculture
production, crop sector adds 38% while fisheries and
forestry contributes 2% each
 Out of crops sector ,horticulture occupies fairly
significant position in terms of area, production,
share in GDP and employment.
 A viable and profitable horticulture sector can
provide a sustainable livelihood to the rural
agriculture community .However small land holding
precludes the possibility of horticultural cultivation
on commercial lines

7.  Pakistan has a great potential for horticulture due to variety
in land and climate which provide opportunities for the
production of a wide range of horticulture crops.
 A large number of indigenous fruits, vegetables and
floriculture commodities are produced in the country while
there is scope for cultivation of exotic crops.
 In some fruits and vegetables, Pakistan occupies prominent
world position in terms of production i.e. apricots(6th),date
palm(5th), Onion(7th),mandarin (6th),mango (4th) etc
 With more than 435,000 hectares under vegetables, Pakistan
ranks 17th in the world while in production it ranks 20th
with a total production of around 5,500,1000 tons

8.  With an area around 200,000 hectares under production,
Pakistan produces 2.15 million tons per annum( 95% of
world’s Kinnows) out of which around 370,000 tons worth
Rs.10 billion is exported.
 Apples are grown on 111,600 hectares and getting annual
production of 366,000 tons out of which ----million tons
worth --- are exported
 Peaches are mostly grown over an area under 15,000
hectares and production is 54,000 tons.
 Mango, the second important fruit crop, is grown
on173,700 hectares and production is around 2 million
tons. It produces approximately 6% of the world’s total
production and is currently the third largest producer.

9.  Grapes, a low water consuming crop, is planted over
16,000 hectares and increasing owing to rise in demand.
Production of grapes ranges from 65,000 to 70,000 tons.
 Guava is widely grown in Pakistan with production of
about 500,000 tons over an area of 62,000 hectares.
 Produced in all the four provinces, the area under
cultivation of dates is 90,000 hectares with production of
531,000 tons.
 Other fruits like banana, persimmon, pomegranates,
cherries and plums are also grown

10.  Onions, grown in all the four provinces is cultivated on an area
of 125,000 hectares and production is 1.70 million tons
 Garlic is the second most widely used cultivated alliums after
onion. It is grown in all the four provinces of Pakistan over an
area of 6,800 hectares producing 57,000 tons
 Potato, fourth most important crop in terms of volume, is
cultivated on an area of 140,000 hectares with production of 3
million tons
 Chillies are grown on 75,000 hectares with a production of
188,000 tons

12.  Huge area available for horticultural plantation
 Climate suitable for cultivation of indigenous
and exotic fruits and vegetables
 Possibilities of fruit/crop inter-cropping
 Year round availability of fruits/vegetables due to
geographical spread
 Increased awareness about tunnel farming/drip
irrigation and its widespread adoption

13.  Low production, often geographically dispersed -less
area/low yields
 Side business to crops/livestock-less attention
 Bad horticultural practices -huge production losses
 Low technological base-less production/productivity
 Poor marketing leading to lower profitability
 Inadequate value addition-less profitability
 Unsatisfactory processing-post production losses

14.  Global corporate interest in food products
 Growing population-domestic and world which
expands the market
 Growing prosperity-local ,regional and global which
increases demand for luxuries
 Improved transportation network saving time
 Regional integration reducing costs of doing business
 New technologies resulting in efficiency gains and
time/costs reduction

15.  Climate change and environmental degradation
 Sudden death syndrome diseases affecting certain
food trees, post harvest fungal disease
 Increasingly strict food safety standards in developed
and even in middle income countries
 Renewed interest in bio-fuel production adversely
affecting food security and horticulture

16. How to meet the increasing demand of high quality
horticultural products by increasing its production
on sustainable basis without adversely affecting the
production of food/cash crops or habitat for
livestock in the face of looming threat of climate
change and environmental degradation

17.  We need to formulate a comprehensive horticultural policy
which should indicate the broad direction, create
institutions and define their respective roles, make rules
for coordination, set safety standards and provide an
incentive and rewards system for various stake holders
 Within this framework the Government’s role should be
confined to policy formulation, regulation, capacity
building and facilitation, while the private sector will take
the lead in investment and value chain development, on its
own or on public-private partnership basis
 Within the national policy settings, horticulture will be
developed with the following five broad objectives;

18.  Increase productivity by increasing efficiency in all
horticultural operations through public as well as
private sector investment in R&D and Extension
 Increase profitability by rationalizing input and
output prices, reducing production and post
production losses and developing efficient
marketing infrastructure
 Make horticultural produce competitive in the
rapidly globalizing world by reducing cost of
production, improving quality and ensuring
Sanitary and Phyto-Sanitary (SPS) compliance

19.  Ensure sustainability by promoting environment
friendly good horticultural practices through
incentives and rewards, awareness campaigns and
promulgation of appropriate legal framework
 Ensure equitable distribution of gains from
enhanced productivity by making available public
sector goods and services to all stakeholders
without distinction

20.  Accelerating the national economic growth by increasing the rate
of growth of this important subsector of the economy
 Reducing unemployment by creating jobs in horticulture sector
 Increasing Pakistan's foreign exchange earnings by increasing
quantity, quality and variety of horticultural exports
 Ensuring food security and nutritional balance of the people’s food
intake by providing them vitamin rich horticultural products
 Helping the state in its poverty alleviation efforts by providing
them a labour intensive, low capital intensive investment
 Improving the condition and status of women by providing them
opportunities to own resources

21. A. Horizontal expansion - increasing the area under
horticultural products
B. Vertical expansion - increasing the yield of the
horticultural products
C. Structural transformation - diversification and
value addition
D. Cross Cutting Interventions - rural reforms

22. 1.Bringing new areas under horticultural cultivation
2.Reclaiming degraded lands
3.Intercropping
4.Urban/peri-urban farming

23.  There is a vast scope of horizontal expansion in
respect of horticultural products due to their
agronomic qualities
 New techniques of tunnel farming and drip
irrigation has revolutionized this sector
 Increased productivity in crop sector can release
additional lands for horticulture
 Even marginal/mountain lands, not fit for
profitable cultivation of cash/food crops can be
brought under fruit/vegetables

24.  Degraded lands, not fit for profitable
cultivation of cash/food crops can be
brought under horticultural production with
the help of technology, chemicals and water
 New techniques and technology of saving
water has made it possible to use these land
for horticultural production on profitable
basis

25.  Encourage eco-friendly inter-cropping practices
as it increases the area under cultivation by
cultivating vegetables in between the rows.
 Similarly farmers can plant crops in orchards to
increase their profitability
 Agro-forestry is another profitable option for the
farmers and the country
 However farmers must be given proper technical
support for this practice to be cost effective and
eco friendly

26.  Increased urbanisation is devouring fertile lands for
construction of spacious houses and infrastructure
 Besides formulating appropriate land use policy,
government should encourage urban and peri-urban
farming by utilizing the vacant areas and promoting
kitchen gardening
 Modern techniques and technology have made it
technically feasible and financially cost effective to go for
this form of micro farming
 Proper guidance, availability of urban farming
infrastructure and timely technical support can provide
incentives for urbanites to become part time farmers

27. 1.Agricultural Education and Research
2.Skill Formation
3.Farm Mechanization
4.Inputs
◦ Seeds
◦ Chemicals
◦ Water
◦ Credit

28.  Our agricultural Research& Development and Extension
suffer from many structural, and management
weaknesses-low funding, weak coordination and linkages
among research, education and extension, inadequate
technical and professional capacities of the agricultural
research institutions, infrastructure etc
 Government should promote demand driven quality based
R&D and extension services by encouraging public-
private partnerships that are linked to horticulture value
chains
 Research and development programs must focus on
finding solutions in terms of increasing productivity,
broaden harvesting time of crops and increase farmers’
profitability.

29.  New varieties should be introduced. Seedless varieties of
some new horticultural crops such as persimmon, cherries,
strawberry, lychee and others have already been introduced
and established as commercial crops.
 Potential new crops should be identified; especially high
value horticultural crops suitable for local climatic
conditions.
 Biotechnology as a tool for rapid multiplication of quality
planting material, virus cleaning, genetic transformation,
have significant potential but requires capacity building and
safeguard procedures to be developed.

30.  Skill development through in-service training at different
R&D institutions can enhance capabilities of extension
staff.
 Postgraduate programs in fruits, vegetables, floriculture,
medicinal and spices crops and post harvest management
should help providing skilled human resource for the
horticulture industry.
 Such programs should be initiated in agriculture
universities and research institutes in all provinces.
 Skilled labor should be attracted and retained through
competitive minimum wages for the agricultural labor and
the development of industry vocational training programs

31.  Intensification and diversification of farm mechanization by
ensuring easy access of the farmers to essential horticultural
machinery
 Its efficient and optimal use by incentivizing the private sector for
opening machinery leasing/hiring outlets in villages
 Federal Government should exempt the duties and surcharge on
import of horticulture machinery like grading units, cold storage
chambers, greenhouses and trickle irrigation accessories such as
micro-tubes, mini sprinkler and bubblers for interested
businessmen
 Expansion and modernization of local machinery manufacturing by
providing them training, incentives and technical/financial support
to produce horticultural implements as per international standards

32.  Limited availability of true to type root stock is the
biggest handicap in establishing state of art fruit and
vegetables nurseries in the country
 State should promote the establishment of such
nurseries by providing appropriate legislative cover,
financial support and technical guidance
 All nurseries must work according to the approved
nursery protocol, developed in consultation with
technical experts and stakeholders
 Only registered nurseries should be eligible for
support and facilities offered by the government

33.  There are various estimates of production losses due to
non-use of appropriate chemicals by the farmers
 Ignorance, fear and costs of using are the general reasons
for this neglect
 There is need to create awareness among the farmers for
judicious use of chemicals for reducing the production
losses
 There are eco friendly measures to reduce this loss for
those who are excessively conscious of use of chemical
inputs

34.  Water was already scarce but its scarcity is becoming
acute due to its increased demand, misuse, wastage
and climate change.
 There is thus need to rationalize its use even for
farming purposes where it is wasted the most.
 New water saving techniques and technologies have
provided hope for mitigating its impact
 Innovative methods such as rain water harvesting
and recycling of sewage water for kitchen gardening
need to be encouraged

35.  The sector is informal and profit margin is low which
has diverted investment to other sectors
 Lack of financial resources and high interest rates of
financial services available ,at the disposal of farmers
is biggest handicaps for its growth
 Government should facilitate soft loans for promotion
of horticulture industry for a period of five years
 The government should facilitate the stakeholders
involved in horticulture business to access commercial
credit by reducing compliance and transaction costs

36. 1. Processing
2. Marketing
3. Value addition
4. Diversification
5. Production Relations

37.  Provide information to the growers on harvest
technologies of fruits, removal of field heat, grading of
the produce and appropriate packaging.
 Post harvest losses must be examined and programs
planned to minimize these losses, when financially
viable, through linking production to agro industrial
transformation and through encouraging private sector
to build cold storages.
 The development of appropriate packaging
technologies that minimize product damage.

38.  The marketing of horticultural products is supply based
with producers being price takers and receiving lower
prices during high supply periods.
 The Government should develop integrated value chains
with producers and producer groups as an integral
component of these value chains.
 The building of contract farming, collaborative
marketing arrangements with processors etc be
prioritized
 Market information system should be established
including price-clearing houses of agricultural
commodities in provincial/federal capital.

39.  Government should promote public-private
partnerships and provide incentives/ support for value
addition and value creation through development of:
Environment-friendly packaging/ packaging industry
Cold chain infrastructure
Wholesale market infrastructure
Fruit and vegetable processing and dehydration industry
Integrated pest management industry and services
Organic and herbal/ medicinal crop production/processing
 Enhanced quality should be enforced in accordance with
World Trade Organization’s (WTO) requirements

40.  Horticulture production should be based on quality that will
promote exports for which accredited quality control and
testing laboratories must be established to certify quality of
the produce for exports and in the domestic market.
 A coherent sanitary and phyto sanitary (SPS) management
system for strong coordination and effective interaction
between various departments involved in inspection, testing
and other related activities should be facilitated
 The regulations and procedures of export and import of
horticulture industry commodities should be reformed to
reduce compliance and transaction costs as part of
achieving efficiency gains

41.  Besides increasing the production of indigenous fruits and
vegetables, we have to diversify our horticultural portfolio
by promoting the cultivation of exotic fruits and vegetables
which are in demand at global level
 This is a centuries old process and is continuing all over the
world. We will not face much problems as our terrain and
climate suitable for production of variety of exotic
horticultural products
 We need the services of marketing people and researchers
to find those products which are globally trades and can be
grown here from agronomic point
 Organic farming is another niche area which needs to be
exploited by providing appropriate legal framework and
proper incentives and support should be promoted

42.  Production relations relate to the way land is owned,
cultivated and crops are disposed of
 In Pakistan only two types of production relations are in
vogue i.e. owner cultivation and tenant cultivation
 We need to also promote three other modes which are
essential for modernising our horticultural
transformation –cooperative, contract and corporate
 These are in operation in some areas but with limited
success. Time has come to provide a comprehensive
legal framework and institutional mechanism to
streamline these production relations

43.  Formulation of comprehensive Land Use Policy
 Improving Rural Infrastructure
 Environmental Sustainability
 Creating Linkages and promoting Investment
 Gender Mainstreaming
 Rural Non-farm Sector

44.  Developing a national land use policy for rational use of
land resources is the need of the day as valuable arable
land is being converted for non-farming purposes at
alarming rates
 Add to it the declining fertility of our agricultural lands
due to non sustainable agricultural practices plus the
degradation of our lands due to water logging and
salinity going on for decades, a negative side effect of
our irrigation practices
 Lastly we are misusing our scarce land resources as we
are cultivating crops on lands extremely suitable for
horticultural use
 All these issues needed to be addressed by formulating
a long term comprehensive land use policy by the
government

45.  Government should facilitate developing modern
infrastructure (wholesale markets, pack houses, cold
stores, reefer containers) under public - private
partnerships led and managed by the private sector
 All-out efforts should be made for the improvement of
infrastructure like roads for the safe transportation of
horticulture commodities
 The focus should be on developing airport facilities for
wide bodied cargo planes to land at airports in the
main production areas, improving handling facilities at
ports providing one window operation and establishing
of effective and viable cold chain development

46.  There is an urgent need to create awareness among the farmers about the
looming threat of climate change/environmental degradation and
popularizing the good sustainable agricultural practices among them
 We will have to synchronise the extension services of the provincial
agricultural departments and marketing outlets of the private agro services
providers to promote environment friendly practices
 Government should promulgation legislation for stopping of practices
aggravating the threat of climate change and allocate resources for carrying
out research to develop varieties responsive to climate change
 They need to look into adjusting the cropping pattern and fine-tuning the
planting and harvesting schedules, practicing crop rotation and diversifying
crop mix

47.  Recent growth has wrought enormous environmental
destruction in India.
 In a recently released report commissioned by the
Indian government, the World Bank estimates that
environmental degradation annually costs India a
horrific 5.7 percent of GDP.
 This shaves off almost all of the annual six percent per
capita GDP growth recorded between 2000-01 and
2010-11. Outdoor pollution alone kills 1.16 lakh people
every year.
 Almost a quarter of India’s child deaths can be
attributed to inadequate availability of clean water and
sanitation, itself related to environmental degradation.

48.  Government should not only allocate substantial
funds for investment in the rural areas but also
provide necessary legal framework and proper fiscal
and financial incentives to encourage private sector
for investing in critical areas
 Government should invest in improving the rural
infrastructure, skill formation, research institutions
and establishment of common facilitation centers
 It should encourage the private sector to come
forward in cool chain, storage and reefer containers
value addition and scientific modern processing and
new technologies

49.  All the non-crop agricultural activities provide excellent
opportunities for accelerated gender mainstreaming
 Even presently women play an important role in
livestock husbandry, poultry farming, dairy production
and horticultural cultivation
 Targeted attention to create gender balance through
skill formation, awareness campaign, financial
assistance and technical support can yield handsome
dividends in short period
 It will also help government in its efforts to reduce
poverty, bulk of which is in the rural areas

50.  Agricultural sector in general and horticultural sector in particular
cannot grow to its full potential unless the rural non farm sector
develop along with its formal farm sector
 Sustained growth of the rural economy lies in the development of
efficient and effective agri-based supply chains that link the
agriculture sector with their corresponding upstream and downstream
links in the rural non-farm (RNF) to the national and international
markets
 RNF provides 40-60% of incomes/jobs in rural areas, much of its
activity occurs in the trading, services and processing sector having
strong forward and backward linkages with agriculture
 Informal and low capital using entities catering mostly to domestic
markets, RNF presents opportunities for providing value addition to
primary production at the farm level

51.  Pakistan has a great potential to increase its horticultural
production by bringing in new areas under cultivation of
horticultural products, introducing new exotic products in its
horticultural portfolio, improving the productivity, adding value
and increasing its exports
 In order to do so it will have to put more resources in research
and development, extension, improving marketing infrastructure
improving processing etc
 This demands lot of resources which can be provided by the
private sector ,local and foreign, if we fine-tune our legal
framework supported by appropriate institutional mechanism and
added by a strict dispute resolution mechanism