OPPORTUNITIES FOR OPPORTUNITIES FOR SMEsSMEs

IN IN AGROAGRO--BASED SECTORBASED SECTOR

ShamsuddinShamsuddin MemonMemonProvincial Project Director Provincial Project Director

SPFS Crop Maximization Project SPFS Crop Maximization Project ––IIIISindh Sindh

Resources of AgroResources of Agro--based sectorbased sector

Agriculture contributes about ¼th to GDP Agriculture contributes about ¼th to GDP in Pakistan.in Pakistan.Over 70% of population directly or Over 70% of population directly or indirectly depend on agriculture sectorindirectly depend on agriculture sectorPakistan has vast crop production base Pakistan has vast crop production base with 35.23 million hectares of agriculture with 35.23 million hectares of agriculture landland

Vast unVast un--utilized land available for utilized land available for cultivation cultivation All weathers and all kinds of are soils All weathers and all kinds of are soils available to produce different crops round available to produce different crops round the yearthe yearPakistan produces all types of cereal, fibre, Pakistan produces all types of cereal, fibre, sugar, edible oil, legume, fodder, sugar, edible oil, legume, fodder, vegetable, fruit, condiment, floriculture, vegetable, fruit, condiment, floriculture, medicinal and industrial crops medicinal and industrial crops

There is tremendous potential for There is tremendous potential for increasing yield and quality of these cropsincreasing yield and quality of these cropsThere is vast scope for value addition and There is vast scope for value addition and byebye-- products of these cropsproducts of these cropsBesides present crops, there is potential Besides present crops, there is potential for new, unexplored and exotic for new, unexplored and exotic commercial & industrial crops commercial & industrial crops There is local as well as international There is local as well as international demand for agrodemand for agro--based productsbased products

There is comparatively cheaper labour There is comparatively cheaper labour force in the countryforce in the countryVast member of unemployed and under Vast member of unemployed and under employed youth available for productive employed youth available for productive useuseAdvantage of proximity to international Advantage of proximity to international marketsmarketsAgroAgro--based sector can guarantee based sector can guarantee sustained social & economic developmentsustained social & economic development

Besides crops, there is vast base for Besides crops, there is vast base for development of livestock, poultry and development of livestock, poultry and fisheries as wellfisheries as wellAll this demonstrates potential for All this demonstrates potential for development of SMEs in agrodevelopment of SMEs in agro--based based industries and tradeindustries and tradeSMEs can play key role in exploiting SMEs can play key role in exploiting these resources in agrothese resources in agro--based sectorbased sector

Benefits of aBenefits of agrogro--based sector :based sector :Employment generation Employment generation Poverty alleviationPoverty alleviationExports Exports Growth in industrial & service sector Growth in industrial & service sector Rural development & less migrationRural development & less migrationOverall socialOverall social-- economic improvementeconomic improvementRural prosperity and law & orderRural prosperity and law & order

Issue & ConstraintsIssue & ConstraintsPakistan has not been able to fully exploit Pakistan has not been able to fully exploit above agro resources and agroabove agro resources and agro--based sector based sector remains underremains under--development development SMEs have not been promoted in agro SMEs have not been promoted in agro sector on large scale sector on large scale There is no separate agro industrial and There is no separate agro industrial and trade policy trade policy Lack of effective coordination between Lack of effective coordination between various ministries, departments, various ministries, departments, governments and organizationsgovernments and organizations

Parallel and duplicate plans and programs Parallel and duplicate plans and programs by various organizations by various organizations Inadequate basic infrastructure like roads, Inadequate basic infrastructure like roads, railways specialized transport, gorailways specialized transport, go--downs, downs, cold storage cold storage Law and order, particularly in rural areasLaw and order, particularly in rural areas

Low yieldsLow yields

Low quality of produceLow quality of produce

Lack of interest in rural development, due Lack of interest in rural development, due to urban approach of planners to urban approach of planners

Investors shying away from rural areasInvestors shying away from rural areas

Lack of skill development programsLack of skill development programs

UnUn--utilized land and land utilized for less utilized land and land utilized for less valuable crops valuable crops

Wastage of land, water, human resources Wastage of land, water, human resources

Lack of sound and reliable crop data and Lack of sound and reliable crop data and crop condition informationcrop condition information

Lack of promotion of SMEs in rural areas Lack of promotion of SMEs in rural areas and agro sector and agro sector

Harvest & post harvest losses ranging Harvest & post harvest losses ranging upto 40% upto 40%

Lack of awareness of SME investors Lack of awareness of SME investors about multi dimensional potential of agro about multi dimensional potential of agro based sector based sector

Action Plan Action Plan SMEDA should be expanded to rural areas SMEDA should be expanded to rural areas with offices in every district & with strong with offices in every district & with strong agroagro--based development capability and based development capability and expertiseexpertiseUp gradation of agroUp gradation of agro--industrial machinery industrial machinery Interaction between farm producers and Interaction between farm producers and industrialist / traders / exportersindustrialist / traders / exportersEncouragement and facilitation of new Encouragement and facilitation of new small and medium entrepreneurs with small and medium entrepreneurs with agriculture background for SMEsagriculture background for SMEs

Promotion of concept of SMEs in rural Promotion of concept of SMEs in rural areas areas

Sound and reliable crop data and crop Sound and reliable crop data and crop condition information system condition information system

Quality standards certification systemsQuality standards certification systems

Development of agro packing industries Development of agro packing industries in rural areasin rural areas

Mini sugar mills may also be promotedMini sugar mills may also be promoted

Small and medium canning industry may Small and medium canning industry may be set up in rural areasbe set up in rural areas

Cooperative farming may be promotedCooperative farming may be promoted

Skill development canters for agroSkill development canters for agro--based based sector may be setup at district levelsector may be setup at district level

Establishment of organized inputs and Establishment of organized inputs and marketing centers in rural areas marketing centers in rural areas Growing for Export may be promoted Growing for Export may be promoted Growing for commercial value addition Growing for commercial value addition Contract farming for quality and assured Contract farming for quality and assured production production Encouragement and assistance to Encouragement and assistance to agriculture graduates for setting up agriculture graduates for setting up SEMsSEMsin rural areasin rural areas

Creation of favorable environment for Creation of favorable environment for small and medium enterprises in agrosmall and medium enterprises in agro--base sectorbase sectorRegular & effective coordination between Regular & effective coordination between various organizations & stakeholders various organizations & stakeholders Parallel projects & duplication of work by Parallel projects & duplication of work by organizations be discouragedorganizations be discouragedPublicPublic-- Private partnership be promotedPrivate partnership be promotedSpecial Fund for development of SMEs in Special Fund for development of SMEs in agro sectoragro sector

Infrastructure Infrastructure

Development of cool chain which include Development of cool chain which include storage, transportation, and distributionstorage, transportation, and distribution

Cold storage network across the country Cold storage network across the country

Temperature control rail, road & air Temperature control rail, road & air transports transports

Promotion of medium size storagesPromotion of medium size storages

AgroAgro--based financingbased financingBanking sector should come in a big way Banking sector should come in a big way to develop the much unexploited agroto develop the much unexploited agro--based sector with special based sector with special packages/products packages/products Long & medium term project financing Long & medium term project financing by banks by banks Specialized credit system for agroSpecialized credit system for agro--based based sector be introducedsector be introducedMore focus on agroMore focus on agro--based sector by based sector by commercial bankscommercial banks

AgriAgri. Product Development. Product Development

High yielding commercial varieties of High yielding commercial varieties of different cropsdifferent cropsPromotion of hybrid and GM technology Promotion of hybrid and GM technology for evolving high yielding and high quality for evolving high yielding and high quality seedseedPreventing harvest & post harvest losses Preventing harvest & post harvest losses (21% to 37% losses at present )(21% to 37% losses at present )

Growing demand oriented crops with Growing demand oriented crops with required quality for export and value required quality for export and value addition addition

Checking soil degradation; development of Checking soil degradation; development of soil & water testing laboratoriessoil & water testing laboratories

Land development for more yield & less Land development for more yield & less wastage of inputs, including water & wastage of inputs, including water & fertilizerfertilizer

Large scale promotion of efficient Large scale promotion of efficient irrigation systemirrigation system

Promotion of high value commercial, Promotion of high value commercial, medicinal and industrial cropsmedicinal and industrial crops

PrePre--harvest education of farmers through harvest education of farmers through model farms, demonstrate and model farms, demonstrate and cooperativescooperatives

SOME OF POTENDTIAL AREAS OF SOME OF POTENDTIAL AREAS OF INVESTMENT FOR SMEs IN SINDH PROVINCEINVESTMENT FOR SMEs IN SINDH PROVINCE

Mango harvesting, processing, packing, Mango harvesting, processing, packing, cool chain including transport, storage and cool chain including transport, storage and exportexportRice processing, packing and exportRice processing, packing and exportSugarcane: molasses (alcohol production, Sugarcane: molasses (alcohol production, ethanol production), ethanol production), baggassebaggasse, filter, filter--cake cake and waxand waxDates drying, processing, packing etcDates drying, processing, packing etc

Vegetables & Fruits dehydrationVegetables & Fruits dehydration

Guava handling, processing and dryingGuava handling, processing and drying

Fruit and vegetable juices, processing, Fruit and vegetable juices, processing, frozen and canning industry frozen and canning industry

Herb production, processing and exportHerb production, processing and export

Organic vegetable productionOrganic vegetable production

Greenhouse flower production, cutGreenhouse flower production, cut--flowers and other ornamental plantsflowers and other ornamental plantsCertified fruit nurseriesCertified fruit nurseriesVegetable & other crops seed production Vegetable & other crops seed production

Hybrid seed production of onion, Hybrid seed production of onion, vegetables, sunflower, maize & other vegetables, sunflower, maize & other cropscrops

Agro Export Processing ZoneAgro Export Processing Zone

Tomato, guava, mango juices, pulp & Tomato, guava, mango juices, pulp & pastepasteNew Agriculture MarketsNew Agriculture Markets

Cold Storage and Refrigerated Cold Storage and Refrigerated Transportation Transportation

Essential Oils Extraction IndustryEssential Oils Extraction Industry

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