ISLAMABAD - The government’s decision to impose General Sales Tax on agricultural inputs that it took last year in April has proved to be totally against the farmers and masses overall.
The said decision at one side has increased cost of production for the farmers and on the other side is adding miseries in the lives of masses in terms of costlier price of staple food, especially wheat flour besides all other edible items. Imposition of GST on agricultural inputs has left the farmers with no profit especially in wheat crop this year. Even at increased procurement price of Rs 1050 per 40 kg being planned by the govt, the overall margin of growers has decreased as compared to previous year.
Certain quarters believe that the government was opting for such policies which can lead to bringing serious food crisis in the future as without the incentives the growers would not prefer to cultivate wheat that will bring back the time when Pakistan used to import wheat.
In every country, the government tries to keep the prices of food items stable as costlier price of food brings real inflation in any economy thus creating panic in the whole society. But the government is totally neglecting the point that there is no raise in the income level of masses and it is making it difficult for them to even feed their children.
This year the farmers might not get even the government’s planned support price of Rs 1050 as stock of 4.7 million tons of wheat is already available. In the open market demand and supply rule would play its role and the growers might not be getting more than Rs 1000 or even lesser. Traders this year would be in better position to exploit farmers and take the benefit in future by procuring wheat on lesser price and then selling it on profit in the future, sources said.
The government might not meet the wheat production target of 25 million tons this year and if the prices of inputs are not capped, the situation would worsen in the future as the poor farmers cannot survive the shocks being given to them from the government.