Role of Private Sector in Agriculture Development

1. Assignment
Role of Private Sector in
Agriculture Development
Submitted To:
Sir Ghulam Mustafa
Submitted By:
Muhammad Hannan
B.Sc. (Hons.) Agriculture (Water Management)
Semester 1st

2. Introduction
Private sector defines as a part of the economy which is commonly referred as the
citizen sector which is run by private individuals or groups, usually as means of profit
and is not controlled by the state.
The private sector will be expected to play the major role in providing capital to the
agricultural sector, with government’s remaining involvement being largely one of
furnishing basic infrastructure. The willingness of the private sector commit capital to
agricultural activities in this new policy environment. In this regard, it appears that if
infrastructure is to make a contribution to the country’s agricultural sector, it will most
likely be in terms of improved quality of facilities and efficient management rather than
their simple expansion.
Pakistan’s agriculture sector has undergone major technological and policy
transformations. By introducing technical changes, offering production incentives, and
increasing the availability of fertilizer, water, and credit. Private sector is actively
engaged in providing agriculture services to farmer community of Pakistan.
Pakistan currently classified as a developing country which is self explanatory for the
weak financial condition of the population. Private sector of Pakistan of agriculture was
present long before the British colonialism but only in the form of feudal lands which
were actually loan sharks most of the time. The industrial revolution was straight up
rejected by the people of Pakistan. The private industry of agriculture variety boomed
by leaps and bounds due to special pardons given to the institutions in Pakistan as a way
to encourage business.
After the initial establishment and failure of the government to provide proper support
and check and balance, the private corporation lands started to loot the poor and
helpless people of rural areas.
However, everyone is not equal so if one private firm is looting uncontrollably there is
one also helping the people by providing farming equipment at less cost on by providing
micro financing ( giving loans with lowest interest rates possible ) and also do extension
work on divisional bases.

3. Agricultural Private Sectors
Pakistan is an agricultural country. The government policies in Pakistan are not enough
for this vast agricultural system. Therefore, the private sectors play an important role in
agriculture of Pakistan. There are mainly two types of private sectors in world.
1. Private Companies
2. Non-Government Organizations
Private Companies
Basically, there are three types of agricultural private companies.
i) Seed Companies
ii) Fertilizer Companies
iii) Pesticide Companies
Seed Companies:
Seeds are the foundation of agriculture. Technology has
modernized much of farming's day-to-day operations, but without a steady supply of
high-quality seed, yields and crop quality would be greatly decreased.

4. Seed companies play an important role in the production of agronomic and horticultural
crops. Characteristics such as trueness to variety, germination percentage, purity, vigor,
and appearance are important to farmers planting crops and to homeowners
establishing lawns and gardens. Achieving and maintaining high seed quality is the goal
of every professional seed producer.
Two of the big players of Pakistan’s seed industry are Monsanto and Syngenta are likely
to make big investments in Pakistan’s agriculture. The seed industry of the country has
been steadily growing 21 new companies entered the market since 2008. However,
Pakistan are signed are agreement with Philippines in early 2017for the export of hybrid
seed that can increase revenue production.
Some seed companies are given below:
i) ICI Pakistan Limited
ii) Neelam Seeds
iii) Sky Seeds
iv) CCR
v) Punjab Seed
vi) Jullundur Private Limited
vii) Monsanto
viii) Syngenta
Fertilizer Companies:
Fertilizers replace the nutrients that crops remove from the
soil. Without the addition of fertilizers, crop yields and agricultural productivity would
be significantly reduced. That’s why mineral fertilizers are used to supplement the soil’s
nutrient stocks with minerals that can be quickly absorbed and used by crops.

5. Fertilizer companies play an important role in the production of crops. Characteristics
such as improvements in variety, yield percentage, increased nutrients in soil and
appearance are important to farmer crops. Achieving and maintaining high fertilizer
quality is the goal of every professional fertilizer company.
Being an agricultural country the demand of fertilizer in Pakistan has been higher than
other countries. In the first half of 2018 the sale of Urea reached 1.63 million tons and
DAP sale reached 434,000 tons. FFC and Engro make up 83% total shares of Urea
market, these two also make up 75% of the DAP market.
Due to the above mentioned reasons Pakistan is one of the biggest exporter of fertilizer.
However, Pakistan is the member of International Fertilizer Association (IFA) and the
Pakistan Trade Union Defense Compaign (PTUDC).
Some fertilizer companies are given below:
i) Fatima Fertilizr
ii) Foji Fertilizer (FFC)
iii) Engro Fertilizer
iv) Dawood Fertilizer
v) Herculus Fertilizer
vi) ICI Pakistan Limited
vii) National Fertilizer Corporation
Pesticide Companies :
Pesticides are chemicals that are used to destroy,
repel, or otherwise lower pest infestations to protect crops from damage. Insecticides
are pesticides used to control insects, herbicides are pesticides used to control weeds,

6. fungicides are pesticides used to control fungi and nematodes are pesticides used to
control nematodes.
The benefits of pesticide companies increased profits for farmers and the prevention of
diseases. Due to pesticide companies, it is possible to combat pests and produce larger
quantities of food. By producing more crops, farmers are also able to increase profits by
having more produce to sell. Pesticides also increase farm profits by helping the farmer
save money on labor costs.
Using pesticides reduces the amount of time required to manually remove weeds and
pests from fields. Therefore, pesticides companies plays very important role in
agricultural development.
The pesticide market is divided into:
Herbicides Fungicides Insecticides
By chemicals types, insecticides have the largest market by value and volume. This is
future divided into crop based and non crop based chemicals accounting 97%.
The Pakistani pesticide industry has had a steady growth because the farmers have
started to control weed and other methods to reduce pesticide use. The net worth of
Pakistan’s pesticide industry was 427.86 million USD in 2015. It is supposed to grow by
18.47%. Pakistan is actually dependent on imports to fulfill it needs as more than 25% of
it pesticides are imported.
Some pesticides companies are given below, these companies account for more than
75% of the account share.
i) Syngenta
ii) FMC
iii) Bayer
iv) ICI Pakistan
v) Four Brothers Chemials
vi) Ali Akbar

7. Due to local producers the multinational companies wound up their
operations and are now operating through distributions.
Like:- Dow Agro Sciences, DuPont.
Non-Government Organizations
About 60% population of Pakistan lives in rural areas and about 80% population of these
areas is poor and lives in agriculture based communities. As shown, their need for
improvement and it can’t be done by the government. There are several non-
government organizations working for rural developments running and finding
themselves by raising awareness and donations.
There are many non-government organizations. Some are given below:-
i) Doaba Foundation
ii) Sitara Foundation
iii) Sungi Development Foundation
iv) Lok Sanjh Foundation
v) Pakistan Kissan Trust
vi) Rural Development Foundation of Pakistan
Here we discuss about Doaba Foundation which detail is given below:

8. Doaba Foundation
The Doaba Foundation (DF), working since 1997, is a not-for-profit-organization. Its
located in Tehsil Muzaffargarh . This foundation plays an important role in
agriculture development. This foundation has changed some past values which help us
in developing our agriculture sector. Some of these developments are very beneficial for
our agriculture sector. These developments involve; modification of our crop
technology, female workshops, safe the crops and literature.
This foundation helped people and farmers. It is facilitating the community by working
on community based disaster risk reduction and development activities in the reverie
belt of Chenab located in Jhang, Muzaffargarh, Multan & Khanewal Districts and the
reverie areas of Indus located in Layyah, Bhakkar, and DG Khan Districts. It has started
its work in Northern side Punjab, District Sheikhupura as well. Doaba Foundation is now
nationally and globally recognized as one of the lead Non-Governmental Organizations
in terms of establishing and demonstrating community based floods preparedness and
management models at wider scale and fostering grass root integrated development
process in the remote and poverty stricken disaster prone reverie areas in various parts
of the Southern Punjab Region.
At present, Doaba Foundation is directly working with more than 565 communities’
organizations located in and around the river Chenab, river Indus and drought prone in 8
districts of Punjab, established vibrant collaborative working mechanism with district
governments, national/ international civil society institutions, and donor agencies, and
advocating for the equal development rights of disaster prone poor and vulnerable
communities living in the reverie areas of Punjab.
Similarly other foundations doing their works and plays important role in agricultural
development.

9. Conclusion
Private Sector is like a double edged sword on one hand it can be helpful and at the
same time it plays important role in agriculture development. Another such example is
the introduction of good seed and at the same time pulling them of the market when
they feel like it. The same goes for the pesticides, industry which produces good
products which are at the same time effective and highly expensive.
Private Sector not only provide agriculture inputs also give extension services. These
sectors have commonly been associated with input supply and with their ability to
capture part of the benefits of extension through input or output markets.
The only solution is to make new law to regulate the Private Sector and
enforce them with extreme prejudice. Response of farmers regarding type of services
respondents were asked the type of advisory services provided by the private
companies.