ࡱ > \ ^ [ 5@ 0 Z$ bjbj22 X X Z z z z z z z z j $ \ R F z " z z $ z z z z `O&{k0 : 0 j z z z z z $ 2 2 Capitalizing on agro sector By Abdul Rasheed & Muhammad Afzal THE agro industry is an extended arm of agriculture but it has not received the due attention. The agriculture contributes about 23 per cent to the GDP. However, the value-added of the processing industry contributes only eight per cent of the total food production.Only two per cent of the horticulture products are processed and more than 30 per cent are wasted due to the lack of storage and processing facilities. The WTO regulations require continuous research to improve the quality of Pakistani products.The agro industries are categorized into three, village industries owned and run by rural households with little capital and a high level of manual labour; small scale industry characterized by medium investment and semi-automation; and the large scale industry involving large investment and a high level of automation.The private sector is yet to realize the full potential of such industries. The global market is enormous for products like sugar, coffee, tea and processed foods such as sauce, jelly and honey.The market for processed meat, spices and fruits is equally large. Mass production aided by modern technology and intensive marketing are needed for full exploitation of the export market.An average Pakistani spends around 53 per cent of his income on food. The domestic market for processed foods is not only huge but consumer trend too, is changing.It is imperative to accelerate the pace of agriculture sectors growth and its related industries. Large private companies are reluctant to enter into this field in a big way as the taxation policy has great relevance for Transitional Corporations (TNC) involvement in production activities.Simulating foreign investment, mainly through the large TNCs, requires cost minimizing devices which are reflected in fixed cost of a long-term investment project. The cost of fixed assets in such projects depends on the rate of return, the price of capital goods and tax treatment of the generated income.Foreign investors generally pursue two sets of objectives that are related to their investment decision. First, they prefer vocational advantages like the market size, access to raw material and the availability of skilled labour.Second, they have concern about incentives offered by host countries through their fiscal policies. These policies attract foreign investment. The local companies require large-scale investment and adoption of latest technologies supported by intensive marketing efforts with brand names having worldwide demand.The province of Balochistan with diversified climatic conditions holds promising future for the agro-based industries. The area is a blessing for growing various fruit crops.A wide range of fruits and vegetables of good quality and sizeable volumes are produced here. The place can be called as the fruit basket of Pakistan. It produces a number of fresh and dry fruits, some of which are not grown anywhere in the country.The agro-industries help in strengthening the farm sector and in stabilizing the rural incomes. The eco-friendly products have potential for export earnings along with employment generation in the province. The government should build macro-economic stability to attract local and foreign investment. There is need to extend loan to agri-business sectors- small fruit processing industries-responsible for producing fruit squash, fruit juice, jams, jellies, marmalades and fruit salad.Apple is one of the most significant cash crops of Balochistan. The fruit is internationally competitive, not only in price but also in quality. The WTO Agreement on Application of Sanitary and Phytosanitary Measures deserves special attention of all the stakeholders in improving the quality and standards of their harvest.Apple production, picking, grading and packing require extraordinary care of the producers. Hence improvement in quality and standards are imperative to capture more world markets under the WTO.The industry needs a solid infrastructure through the government support. It needs hi-tech equipment for packaging and polishing, storage, and a sound road network for speedy and timely transportation. There are numerous other areas for investment which need to be explored, as well.The province produces about 225 thousand tons of dates every year but only seven to eight per cent of the total production is exported due to lack of drying and processing facilities.If implemented, the Solar Dates Drying System, can minimize the post-harvest production losses which are estimated to be around 50 per cent of the total. Strict compliance of improved post-harvest management practices can bring more foreign exchange.Yet, another area is grape drying. In Balochistan grapes are grown on 8.7 thousand hectares with an annual production of 73.8 thousand tons. Raisin making is a profitable business but old and traditional methods are practiced which lack proper sanitation.Some rigorous quality control, proper packaging and a brand name are required for boosting this trade. The processed grapes are exposed to dust and insect-invasion. There is a need to organize the raisins industry on modern lines which will increase the quality and help in earning more foreign exchange.The Technology Transfer Institute (TTI), PARC, Quetta has carried out a study to determine raisin making and its profitability. The findings were shared with the Chamber of Commerce, Quetta to provide guideline for the investors as a profitable enterprise.A study on constraints and opportunities in the production and marketing of wild olive was also carried out by the TTI, PARC with the objectives to document the present status of wild olive forests and to look into the possibilities of income generation for area farmers.The plant has enormous potential against diseases and drought confrontation as no disease incidence was shown despite a drought. The marketing is a major problem confronted by farmers. The study authors have strongly recommended installation of extraction plant at the production site which can generate additional income, along with saving foreign exchange.Other commodities produced and marketed are wheat, rice, maize, potato, cotton, fruits, vegetables, flowers, fish, poultry, medicinal plant and honey. These are processed in one form or the other and consumed in huge quantities within the country and are also exported.As the development of agro industries can make agriculture more lucrative, commercial banks will play an important role by providing finances. The focus on value-addition is vital for the development of rural economy.The food processing industry creates jobs, entails raw material, leads to commercialization, enhances income of farmers, and creates surplus for export. Thus, social and physical infrastructure would also be improved. The difficulties facing food processing should be addressed by the industry, the promotion boards and the government with better coordination.Quality raw material should be produced in sufficient quantity and properly packed to facilitate processing. This calls for educating the farmers in production and harvesting techniques. @ A B Y$ Z$ h8 h CJ aJ .j h8 h8 5CJ U\aJ mH nH u h8 h8 CJ aJ h8 h8 5CJ \aJ h8 @ Y$ Z$ gd8 \$ gd8 $a$gd8 Z$ 1h/ =!"#$% FkX хzPՋb JFIF d d Ducky d Adobe d ! 1"A#x9 Q2טYa$8qB346f7X:bCdVhi ? ao:ξ>| 3l21