Farmers’ exploitation

LAHORE: Planners for the first time have recognised the agriculture sector’s ability to put the Pakistani economy on a sustainable growth path in the shortest time through corporate farming. But the goal would remain elusive until the exploitation of small farmers is addressed.

Corporate farmers would be provided from 27 million acres of cultivable land that is not under use because it is not developed. It lacks infrastructure and water (which is available underground) and the terrain is uneven. The corporate farmers who would be leased vast pieces of land for long-term would invest in developing the land.

They would go for fully mechanised farmers and would arrange their own quality seeds and other input. This would take a year or two if the land is leased immediately. There are little chances that they would be exploited.

Exploitation of farmers can occur in both emerging and developed economies, though the extent and specific methods may vary. The phenomenon is not limited to any particular type of economy, as issues related to farmer exploitation can arise in different contexts.

In the presence of unregulated influential middlemen, farmers may be forced to sell their produce at very low prices due to monopolistic practices or lack of bargaining power. Middlemen and large corporations may take advantage of information asymmetry to offer farmers lower prices than what their produce is actually worth. This aspect needs to be regulated to ensure fair prices for the farmers, as 87 percent of the current farmers have average landholding of 6.5 acres.

Small landholdings mean that they would remain subjected to exorbitant prices for agricultural inputs such as seeds, fertilisers, and pesticides, with limited access to affordable and high-quality inputs.

Small farmers may be further trapped in cycles of debt, often borrowing money at high-interest rates to invest in their crops. If the harvest is poor or the prices they receive are low, they may struggle to repay the debt, leading to a vicious cycle of indebtedness.

Farmers in Pakistan find it challenging to access formal credit or insurance facilities, leaving them vulnerable to risks associated with crop failure, natural disasters, or market fluctuations.

In most cases, small farmers use family members for carrying out agricultural activities themselves. But when they need outside help they employ labourers under exploitative conditions, paying very low wages or providing inadequate working conditions.

Another issue faced by small farmers are the poor quality of seeds and chemical inputs. Adulteration in pesticides or the supply of substandard seeds can severely impact farmers’ crop yields, leading to financial losses. Small farmers get these inputs in kind from informal financers that invariably supply substandard inputs.

Majority of farmers face uncertainty due to unpredictable market fluctuations, where crop prices can rapidly rise or fall, affecting their income and stability. The low price of Phutti offered to the cotton farmers is a recent example in this regard.

In regions on the periphery of cities, powerful entities exploit farmers by grabbing their land or displacing them from their ancestral agricultural lands, often for the sake of development or corporate interests.

Some of these issues may exist in developed economies but actual exploitation occurs at large scale in emerging economies like Pakistan. The specific reasons and regulatory environments in each country may contribute to variations in the level of exploitation faced by farmers.

Addressing farmer exploitation requires a combination of policies, regulations, and market reforms to ensure fair and sustainable agricultural practices that are non-existent in our country.