LAHORE - SVC Paapam Mumshad Ali has lauded the incentives announced for farmers at the Kissan convention by the Prime minister Mian Mohammad Nawaz Sharif.

Ali also appreciated behind the scene efforts of Sikandar Hayat Khan Bosan and his ministry for agricultural and food security in making this package a reality. The incentives announced will increase the disposable income of the farmer and this means good news for the tractor industry, said Ali.

Speaking on the occasion, SVC Paapam also shared his views on the provincial tractor schemes announced by Punjab, and Sindh. Ali said that the current model of scheme do gives business to the local tractor industry and farmers do benefit from it, but the scheme has some downsides also.

Namely it results in boom and bust for the tractor industry because it distorts the demand and production cycle. Secondly, the time lag between the announcement of the scheme in the budget and its actual launching leads to a sheer drop in demand for the tractor industry during this gap, as farmers wait of the scheme to apply for tractors, this causes huge losses to the industry.

Thirdly the difference in the subsidy tractor volumes and amount announced in the budget and the subsidy volumes and amount at the actual launching of the scheme also differ, resulting in miss planning  by the tractor industry, causing huge losses.