Agriculture inputs, tools: 'gas stoppage, imposition of taxes most destructive'

Farmers Associates Pakistan (FAP) has termed stoppage of gas to the fertiliser industry, imposition of GST on agricultural inputs and agriculture implements as most destructive steps taken by the present government against growers and agriculture sector. This was alleged by FAP President, Dr Tariq Bucha in a statement issued here Saturday.
He said the present government since assuming power in 2008 has failed to take any correct and positive step for the improvement in Pakistan's economy despite tall claims and false promises. The most vital sensitive and crucial component of Pakistan's economy has and still is agriculture with 22 per cent share in GDP. The government policies so far have destroyed organisations like PIA, Pakistan Steel, Pakistan Railways and many others.
Similarly, the attempt to kill the farmers and agriculture sector began with most destructive measures such as stoppage of gas to fertiliser industry, imposition of GST an agri inputs and GST on agriculture machinery ie tractors and other implements, he added.
While government has totally ignored the basic components of economic progress to invest and cater for profitable sectors like agriculture, Bucha said and added it is pity that it has also through their anti farmer policy has made agriculture also fall a prey and meet the same fate as of other sectors.
Pakistani farmers of which 86 percent own below 12.5 acres can hardly make both ends meet because of imposition of GST on inputs they would now have to avoid the application of required fertiliser and the use of tractors for cultivation because of its prices swelling beyond the reach of the farmers, he said.
In fact, FAP members felt that Pakistan will be faced with catastrophic impact on its agriculture share in GDP because of very little or practically no increase in output/ crop price in relation to the overall average increase of around 33 percent in cost of production during 2011 (since imposition of GST). Productivity will suffer further because of non affordability of buying tractors whose prices eg in July - December for a 50 HP tractors were Rs 499,000/- increasing in March - June to Rs 630,000/-.