ISLAMABAD - Contrary to the claims of the government, certain quarters believe that agriculture sector that is the backbone of Pakistan is not the top most priority of the government and the present budget presented by the government reflects the same.
In the recent budget presented by the government, there is one major element that is missing and that is controlling the input cost of crops. As per market sources and some representatives of the farmers’ community, the government is not taking the matter of increasing cost of production of agricultural products seriously.
Though the government has announced to reduce sales tax on the tractors but that will not directly affect the cost of production of crops. President Agri Forum Pakistan Ibrahim Mughal said, “Total sale of the tractors in Pakistan stands at 50000 units a year. This reduction in sales tax will definitely increase the sales number to some extent but that will not decrease the cost of production that is a very serious issue.”
Mughal said that tractor was not the only machinery used in the agriculture sector and there are many other expensive types of equipment required by a farmer but their prices were still high. He said that the government had just picked the tractors to gain some publicity or to benefit the owners of tractors factories those are complaining about their low sales volume.
Mughal further said that the total demand of loans in agriculture sector was about Rs 1000 billion but the government had suggested that a total amount of Rs 500 billion should be given to farmers in the shape of loans during the fiscal year 2014-15. Fuel and electricity prices are so high and the government did not announce any package for tubewells in Punjab and other provinces, except that it suggested some amount of subsidy for Balochistan that hardly contributes anything in agriculture sector of the country. In case of fertilizer, the government has no control on the prices and that is a major factor in increasing cost of production of agricultural products. As far as the Crop Insurance Scheme is concerned that is announced by the government in the recent budget, farmers have to pay the premium of that insurance so what will be the government doing in that case.
A farmer Asad Ullah said, “The crop insurance scheme won’t benefit the small farmers as they cannot pay the premium. So this scheme is just a show off of the government”.