LAHORE - When payment of over 1,100 units is still pending for the last four months against previous Subsidy Schemes of 2012-13, another Tractor Scheme of Sindh government shakes confidence of growers as well as the industry, as the plan of 1,200 units’ tractors distribution among farmers lacks transparency, rule of law and cooperation among official agencies, it was learnt.
Industry sources said that the new Tractor Subsidy Scheme of the Sindh government appears to be rigged to favour a single company, as the contract of supplying all 1,200 tractors to growers through Sindh Bank financing has been awarded to a newly-formed company.
They said that the provincial government has selected a specific tractor assembler, which has recently started operations due to vested interest while all other well-known and well-reputed companies, manufacturing tractors for the last several decades in the country, have been ignored.
Criticizing the planned distribution of tractors among growers on subsidized rates, the manufacturers observed that Subsidy Scheme should not be patronized for a specific company or brand and demanded that all players of local tractor industry should be given level-playing field for supply of tractors through an open and transparent bidding. Usually, some specific quota is allotted to every domestic tractor manufacturer in any tractor distribution scheme, as government follow the whole procedure by inviting applications then selecting successful bidders and at the end it awards contracts to the company on quota or merit bases.
Industry sources said that provision of subsidized tractors to the farmers through Sindh Bank Limited seems to be doubtful and uncertain, as mode of execution (first come first serve base) is a big question mark, because growers, who were interested in applying for scheme, complained that the Sindh Bank branches refused to provide them application forms even on the very next day of the advertisement in newspapers.
“Bank staff either shown their ignorance regarding any scheme, or said that all application forms were already distributed, which were actually in limited number.”
Industry sources said that if government plan of 1200 tractors’ supply from a single company is implemented, it would result in closure of other tractor manufacturing units along with downstream auto parts manufacturing industries, rendering jobless over 2 million direct and indirect workers of this sector.
The discriminatory atmosphere will harm other industrial units, which have already achieved 93 percent deletion to produce parts locally and having most efficient network of after market services. Strongly opposing the selection of one company for 1,200 tractors distribution, they said that other indigenous tractor industry is also working efficiently and with sufficient capacity to meet any quantity of demand.
They said that if level-playing field was not given to all stakeholders, the move will damage the local industry, displace the labour and disturb the production schedule of an efficient industry, leaving it with no other option but to close down their units. Industry circles asked the government as well as the Sindh Bank to immediately release the pending payments against delivered tractors before start of the new scheme.  Criticizing the planned import of 1200 units of tractors, the manufacturers observed that Subsidy Scheme should not be patronized for a specific company or brand. They demanded that a reasonable time should be given to the farmers for submission of application, followed by a transparent balloting instead of ‘first come first serve basis.’