Skyrocketing agriculture input: Wheat, sugarcane, cotton, potato growers shifting to other crops

ISLAMABAD: The skyrocketing agriculture input costs over the two years have forced the farmers especially wheat, sugarcane, cotton, and potato growers to shift to other crops as a result the country is compelled to import these commodities.

Officials dealing with agriculture sector and farmers’ representatives have stressed the government to take immediate serious measures to reduce input costs of the agriculture sector, otherwise, the expensive inputs would force farmers to start cultivating substitute crops especially cotton growers and wheat growers as a result the country will become a net importer of grains.

Talking to Business Recorder, officials of the Ministry of National Food Security and Research, farmers, and economists said that owing to skyrocketing input costs from fertiliser, pesticides, ploughing to transporting the agriculture produce to markets, majority of farmers, especially with sustainable farmlands have either stopped cultivating a number of crops or have shifted to other crops.

They said, as a result, in Rabi Season 2019-2020, the farmers reduced wheat, potato, and sugarcane land dedicated to cultivation of these crops.

Furthermore, the authorities concerned also badly failed to properly deal with the situation of wheat procurement.

Farmers also rejected recent decision of the federal cabinet of fixing Wheat Support Price at Rs1,650 per 40kg, saying below Rs1,800 per 40kg wheat support price has disappointed the farmers, and they will cultivate alternative crops as owing to increased input costs this support price is not profitable at all.

Talking on the subject, Economist Dr Ashfaq Hassan Khan said that the government should not intervene in the agriculture sector by fixing minimum support price of any crop.

He said that support price only benefits big farmers, while over 88 percent of farming community of Pakistan has subsistence farmlands, adding that big farmers were always taking full advantage of the support price, while small farmers were exploited; therefore, “the government must come out of the practice of fixing support price of any produce, or should fix and implement the prices of final products of all such crops”.

If sugarcane price is fixed at Rs200 per 40kg, the government must compel the millers to supply sugar at Rs60 per kg.

He said that 10 percent increase in wheat support price increases annual inflation by three percent, and the farmers’ demanded 50 percent increase in wheat support price, which would increase annual inflation by 15 percent.

Dr Khan said that the only solution to the problem was letting the market forces determine the prices of input and output.

He added that it would rid the farmers of the blackmailing of middlemen, millers and other mafias, while the people would get fair prices.

According to farmers and the Ministry of National Food Security officials, due to high input costs, farmers are shifting to other crops.

A urea fertiliser bag costing Rs1,400 in 2018, costs now Rs2,000, a DAP fertiliser bag costing Rs2,800 in 2018 now costs Rs4,000, diesel costs Rs110 per litre, which in 2018 cost Rs85 per litre, tractor, water, thrasher and other machinery costs have also gone up with the increase in electricity and petrol prices. Moreover, farm-to-market transportation costs have also increased over the past three years, and climate change is also destroying cotton like cash crop of Pakistan.

Farmer Arman Yousaf explaining the scenario said that a 12-acre farm preparation for cultivation of wheat costs at least Rs85,000 which includes three bags of wheat, seed costing Rs3,000 per bag, five bags each DAP, and Urea fertiliser, tractor cost Rs1,800 per hour for ploughing the land, same amount is required for crushing considering average 30 mund produce per acre.

He said that to cultivate 12 acres of land, production cost remained around Rs200,000 excluding Rs120,000 minimum labour cost of six months.

At current national average, wheat output of 30 munds per acre, a farmer at maximum get 360 munds from his land, which at present wheat support price of Rs1,400 per 40kg a farmer can at maximum get Rs504,000 by spending six months.

Same is the situation with the sugarcane produce which take almost whole year to mature but the farmers are exploited not only by the sugar millers but also by middlemen, either paying below the market price, delaying purchase of produce and not paying timely price.

According to officials of the Ministry of National Food Security, sugarcane production in the 2019-20 reduced to 64.77 million tonnes from 67.17 million tonnes the year before showing 3.8 percent decline owing to an increase in area and production of rice and maize, said the official.

The high input costs have disturbed supply/demand situation as in 2019 potato farmers badly suffered owing to the low prices of their produce.

As a result, farmers reduced potato cultivation and during ongoing year potato price remained over Rs65 per kg, while a year ago, a 110 kg potatoes bag was available at Rs1,200 in wholesale market which now costs Rs7,800 per bag.

The official said that during the ongoing year, the country is not going to achieve cotton production of 11 million bales, and it will be maximum at around eight million bales, saying a few years ago the country was producing 15 million bales of cotton.

This will also put additional burden on the country as the textile industry will be forced to import raw cotton to operate their plants.

Chairman Agri-Forum Pakistan Mohammad Ibrahim Mughal blaming the senior bureaucracy for the current situation facing the agriculture sector of the country said that the government must fix wheat support price at Rs1.800 per 40kg to avoid food crisis in the next year as the farmers are reluctant to bring required lands under wheat cultivation due to high input cost.

In case the government does not fix wheat support price around Rs1,800, the country next year will be forced to import up to 4-5 million tonnes of the commodity costing at least Rs2,000 per 40 kg, Mughal said. He said that wheat costs Rs1,500 to Rs1,600 per 40kg to farmer at present market prices of different inputs used for cultivating the crop, therefore, the authorities must encourage farmers either by increasing wheat support price or bring down the prices of urea, the DAP fertilisers, and other inputs.

He said that annually Pakistani farmers were consuming 120 million bags of urea fertiliser and 30 million bags of DAP fertiliser, before the arrival of Pakistan Tehreek-e-Insaf (PTI) government urea was available at Rs1,400 per bag to farmers and DAP at Rs2,800 per bag, while now a urea bag costs Rs2,000 per bag an increase of 42.86 percent, and DAP Rs4,000 also reflecting an increase of 43 percent.

Basmati paddy production costs a farmer Rs2000-2,200 per 40kg, while other forms of paddy costs Rs1,200-1,600 per 40kg due to increased input costs, under such a situation the government must make all possible efforts to ensure good returns for the growers.

Similarly, sugarcane costs farmers Rs220-225 per 40kg while the government has fixed the price at Rs200 per 40kg keeping in mind the increased input costs the government must fix it at around Rs300 per 40kg.

He added that in 2018 season, Pakistan produced almost 67.17 million tonnes of sugarcane which in 2019-2020 reduced to 64.77 million tonnes only because the farmers did not get good prices for their produce.

At present, maize costs farmers Rs1,100-1,200 per 40kg, which a few years ago, was costing Rs800 per 40kg, but owing to good returns the farmers have started more land under maize cultivation and currently Pakistan is producing five million tonnes of maize, which should be encouraged and taken to 10 million tonnes.

It will help meet food requirements of people of the KP and also help grow poultry industry as it can replace wheat as poultry feed.

Copyright Business Recorder, 2020