Agri-finance

The agricultural sector has been facing many problems, such as traditional methods of farming, low yields, shortage of key inputs (credit, fertiliser, improved variety of seeds), adulterated pesticides, improper plant protection measures, etc. All these factors arise from lack of financial support to farmers. Agricultural finance and credit facilities are insufficient and uncommon in a country where credit and finance for agriculture is not available easily. Moreover, there are non-governmental and non-institutional sources of agricultural credit with a high rate of interest as compared to the earnings of farmers. Also, credit facilities are not offered and disbursed when crops are sowed.

About 81 percent farmers, being small and poor, are not in a position to remove agricultural constraints because of the shortage of funds and finance. Small farmers with small incomes and large families generally need funds and financial assistance from the government to meet their input requirements. Also, medium and large farmers need finances and funds to increase productivity and also for developmental purposes. Therefore, there is a need for the government to offer financial assistance to farmers with different financial and support programmes. Moreover, the government should encourage privatised agricultural finance organisations to offer debts at low rates that can be easily afforded by farmers.

Sabrina Muhammad Rehan

Karachi