MULTAN   -  Chairman of Pakistan Kissan Ittehad Khalid Khokar Wednesday said that food security was a major international issue and that the recent increase in electricity tariffs for tube wells would be disastrous for the agriculture sector.

During a press conference at the local press club on Wednesday, Khokar stated that out of the total $31.5 billion in exports, agriculture’s share exceeds $24 billion.

Khokar lamented that historically, electricity costs for agriculture were lower than for industry. He argued that agriculture was becoming unfeasible due to high tariffs and input costs, including fertilizers.

The chairman expressed concerns over agreements with Independent Power Producers (IPPs), particularly the high capacity charges, which he claimed amount to Rs 2200 billion. He called for revisiting these agreements, highlighting that payments to IPPs are made in dollars which also put stress on the economy.

Khokar also revealed a 21% decline in Urea fertilizer sales in June, warning that this could hurt per-acre production. He also hinted at a 30% drop in cotton cultivation area, which could damage the economy. If Pakistan produced 20 million cotton bales, it wouldn’t need to take loans, he claimed.

Khokar pointed out that while industrial electricity tariffs were reduced by Rs 10/unit, the agriculture sector was ignored completely. He urged the government to lower Urea fertilizer prices to Rs 3500 per bag, stressing that affordable inputs are essential for productivity.

High electricity tariffs have led to the suspension of thousands of tube-well connections, deterring many farmers from crop cultivation. Khokar feared that wheat production could drop by 50% next year.

He advocated for a 25-year special policy for sustainable agriculture. Regarding the IPP capacity charges, Khokar suggested that since 80% of IPPs were owned by Pakistanis, they should be approached to resolve the issue. He stated that, unlike in other countries, Pakistani cotton farmers are not economically protected and they face significant pricing challenges for their produce.