The Punjab government plans to cut the edible oil import bill and increase farmers' income by promoting oil seed cultivation and offering subsidies for non-conventional crops.

Cash-strapped Pakistan imported US$4.5 billion worth of edible oil, mostly palm oil, in 2022.

As per the decision, the provincial agriculture department will offer Rs5,000 per acre subsidy for a total of 100,000 acres to be brought under canola hybrid (imported) variety cultivation this Rabi season, sowing for which will begin within days.

“The Punjab government's recent decision to encourage canola cultivation through substantial subsidies and incentives is a commendable step towards reducing Pakistan's reliance on costly edible oil imports, particularly palm oil, which has been a significant drain on the nation's foreign exchange reserves,” said Aamer Hayat Bhandara, Member of the Working Group on Formulation of Punjab Agriculture Strategic Plan 2023-33, while talking to WealthPK.

“This proactive approach not only has economic implications but also addresses the agricultural and ecological concerns,” he said.

First and foremost, this initiative will empower farmers by providing them with financial support and guidance. The Rs5,000 per acre subsidy for canola hybrid cultivation, the Rs20,000 per acre incentive for model plots, and the Rs5,000 per acre subsidy for inter-cropping with other Rabi crops incentivize farmers to diversify their crops and enhance their income. The lottery system for selecting model plots ensures a broad participation, which is a positive step towards a more equitable distribution of resources.

“The emphasis on inter-cropping canola with wheat, sugarcane, and berseem will not only augment agricultural yields but also serve as a biological pest control measure,” he said.

Bhandara added that by promoting the growth of ladybird beetles through early aphid infestations on canola, the government is not only reducing the need for chemical pesticides but also fostering a more sustainable and eco-friendly farming environment. This approach aligns with the global trends favouring integrated pest management and reduces the environmental impact of agriculture.

Furthermore, distribution of seed kits for canola and winter-season vegetables is a practical way to encourage kitchen gardening in rural areas. This can have a cascading effect on nutrition, food security, and the local economy, as it reduces dependence on the commercially grown produce and ensures a diverse diet for rural populations.

Bhandara explained that farmers could not sell their crops because they did not have the equipment to extract oil from them. Providing subsidies for small oil extraction units in villages will solve a major problem that has prevented oilseed cultivation from expanding.

This will enable farmers to process their crops locally, instead of relying on faraway extraction centers. This will also improve the quality and value of their products in the market.