Monday, June 1, 2015

Agriculture Development


We continue to believe and argue for a strong, well-funded agriculture ministry with ever increasing size.  It has become a faith beyond reason and rationale.  Thankfully it is justified by poverty reduction, rural-urban migration, and providing better livelihood for rural communities.  The challenge is therefore to build such an organization. 

Many young intellectuals however argue differently.  They say the ministry of agriculture should focus on facilitation, oversight and regulation.  The ministry should let the private sector to take up the substantive task in the free market environment.

 Sticking to the old gun is not fruitful.
Alongside the youth, the private sector believes the sale of agricultural inputs, crop production promotion, provision of market at farm gate, product development and trade are best done by private sector.  It only requires enabling policy support for private sector participation.  
Embracing the new facilitation role, the ministry of agriculture should deregulate the job of buying and selling of fertilizers, seeds and plants, pesticides, agricultural machinery and tools and so no.   

The ministry of agriculture took up the job of input supplies in 1961 but much water has run down the river since then and we are now in 21st Century.  

Buying and selling agricultural inputs are not the job of civil servants and in no democratic country the civil servants does the trading job of buying and selling.
By deregulating the job of buying and selling of agricultural inputs, there will be creation of job in private sector and the agricultural inputs will be delivered more efficiently.  

Due to competition in the market the price will stabilize at a competitive market price.  As a result a huge burden of ministry of agriculture can be taken up by private sector at no cost and the ministry of agriculture can focus on more important jobs.

Upon handing over the job of buying and selling to private sector, the ministry of agriculture should focus with much attention to:
>Articulating policies that enhance labor productivity and profitability,

 >Climate change adaptation,

>irrigation with due consideration for water saving micro-irrigation systems for horticultural crops.

 >Initial capital investment support for production ensuring profitability,

>Capital investment support for post harvest infrastructures: pack house, warehouse and cold storage chain development,

>Demonstrate profitability on agricultural enterprise to the youths.


There is neither the capacity to efficiently deliver on conventional roles, nor the agility to work with private sector with the role of new-style facilitator, coordinator and regulator. 
The inability to function effectively and respond efficiently to the many challenges and opportunities is often exacerbated by a range of factors, including declines in available financial and human resources, loss of technical professionals to other jobs and so on.
While an impasse between the old and new trends evidently prevails, strong capacity on input delivery is justified.  

Unless favorable environment is there the private sector cannot be dragged for making investment.


Farmers decide to invest only when they are fully convinced of profitability of their investment.  
A policy that supports private sector to take up sale of agricultural production technology and inputs, and investment in production, marketing and export is impending.



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