South Asian agri-food market is witnessing a rapid change both in governance and structure. Panel on "Regoverning Markets" was organized at the SDC to look at the present scenario and future strategies to handle the upcoming challenges. The presenters called for effective and appropriate policy response for marketing and management of the agricultural commodities in changing domestic and international markets. Regoverning Market panel was chaired by Mr. Ashraf Hayat, Additional Secretary, Ministry of Commerce, Islamabad, and Ms Ayesha Humaira, Deputy Secretary, MINFAL, Islamabad, was the discussant.
Mr. Vijay Paul Sharma from the Indian Institute of Management, India, presented his paper on “Indian Agrarian Crisis and Smallholder Producers’ Participation in New Farm Supply Chain Incentives”. He argued that agricultural growth is essential for achieving economic growth and poverty alleviation. He pointed out that the reasons of Indian agrarian crisis are foreign direct investment (FDI) in the retail sector, declining investment, slow growth in agriculture and rural development, degradation of natural resources, capital inadequacy and lack of rural infrastructure and institutions. However, FDI in retail sector is the main contributor due to which the agriculture exports have reduced from 30% to 10% in recent years.
He demanded that policy focus ought to be on food security and poverty reduction, issues related to input use efficiency such as irrigation management, chemicals, seeds, and easy access to credit at affordable rates. He also urged the government to come up with new marketing policy, which can adequately address the needs of modern supply chain with a focus on resource poor and small farmers. There is also a proper strategy to address the FDI issues. Smooth functioning of supply chain requires the proper regulatory framework, which can secure the livelihood of destitute of society. Government in this regard is required to act as facilitator and provider of safety nets to rural poor people, stressed the speaker.
Mr. Abdul Ghafoor from the University of Agriculture, Faisalabad, Pakistan, talked about the “Mango Market Integration in Pakistan: Implication for Exports”. Pakistan is the fourth biggest producer of mangoes, and Pakistan can earn a handsome amount of foreign exchange from its effective marketing and management. He mentioned that fortunately the mango market in Pakistan is completely integrated and most importantly it can adjust quickly in response to any shocks in market. He said that at present Karachi is the only terminal market from where mango is exported to other countries, mainly to the Middle East and Gulf countries. Pakistani mango also has a great demand in the west but unfortunately at the moment Pakistan is not able to exploit this potential due to lack of exporting facilities, quality standards and export terminals. To exploit the potential, Pakistan should improve its quality standards, marketing facilities and establish new terminal markets and venues. Mr. Ghafoor said Multan and Lahore are appropriate options for the setting up of new terminal markets and venues. He pointed out that Lahore is more viable option in terms of facilities.
Mr. Khuda Bakhsh from the University of Agriculture, Faisalabad, Pakistan, focused on the “Impact of Price Variation and Market Distance on Returns in Potato Production”. He briefed the audience that high transportation cost, lack of market information, and exploitative role of the middleman are the main reasons for farmers' inability to get their due share. According to him the main factors, which dictate the decision-making regarding the crop cultivation are land quality, labor availability, transportation cost and its demand. He highlighted that potato farming has not been given due importance as cash crop which effects the potato production very badly. The major problems in the production and marketing of potato are lack of credit, lack of inputs, inefficient supply of inputs, scarcity of storage facilities, inefficient output supply chain and ignorance of government. He stressed the need for government interventions to secure the rights and income of farming community. He urged the government to regulate the input and output markets. Farmers should be given the assurance of timely availability of inputs and selling of output.
Mr. Ashraf Hayat concluded the session and said, 'We need to ponder over not only the regulatory issues but a strong consensus is also required among all stakeholder to develop appropriate marketing policy with a special focus on small producers and entrepreneurs. He also called for policy coherence among developing countries to cope with the challenge of FDI in retail sector.
Reported by Shakeel Ahmed Ramey
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