Government wheat support price mere peanuts: Growers' bodies demand more increase
Terming the increase in the wheat support price by the government as insufficient, different growers' organisations have called for to make at least Rs 1,500 per maund enabling farmers to meet their input cost and earn "some reasonable profit" to meet their both ends.
Wheat Growers Association (WGA) Chairman and Farmers Associates Pakistan (FAP) Director Chaudhry Hamid Malhi talking to Business Recorder here on Monday said that the raise announced by the government was mere peanuts keeping in view the hike in inflation during the last three years. He said the support price had been increased after three years while during this period inflation had increased by 10 per cent every year.
He said there should have been an increase of Rs 300 per maund keeping in view of the in increase in inflation during last three years. The cost of production and cost of living had also been increased during this period as the government imposed 17 per cent GST on agricultural inputs. He said that Rs 80 billion GST was being collected by the government only from fertilizer and other agricultural inputs. Malhi stated that prices of wheat in the international market were lower than in Pakistan but it was because growers and agricultural commodities were heavily subsidised by these countries. He said that around 300,000 tons of wheat was imported last year and same quantity might be imported this year too. He said that there should have been duty on import of agricultural commodities to keep our farmers competitive. He said 80 per cent of the farmers grow wheat and extending incentives to them meaning incentivizing the majority of the community.
Regarding decrease in diesel prices, he said it was still higher than petrol. Historically, diesel had always been cheaper than petrol as it was used in transport and by the farmers for tractors and other agricultural purposes. Increase in prices of diesel means hitting both the commuters and agriculturists. It should be brought down further and provided to the agricultural sector on more subsidised rates, Chaudhry Hamid Malhi argued. Kisan Board of Pakistan (KBP) Secretary General Malik Muhammad Ramzan Rohari and Media Secretary Haji Muhammad Ramzan in their reaction rejected the new support price announced by the government and said it should be fixed at least around Rs 1,500 per maund. They said that input costs including electricity, fertilisers, pesticides and others had registered 30 per cent increase during the last few years and new support price was nothing but a joke with the growers.
He said that agriculture had become a trade of deficit and the Kisan Board's demand that the wheat support price should be fixed at Rs 1,500 per maund besides announcing appropriate flat rate for electricity to the growers. They warned that if increase in wheat price was not made as per growers demand it may lead to the flour crisis. They said that the Kisan Board had time and again demanded increase in sugarcane and wheat prices but the rulers always favoured their dear flour millers and always neglected the growers.
KBP leaders said that flood water was still standing on wheat growing areas this year. They said growers had no money to buy seed while delay in the sugarcane crushing season would also cause a decrease of 25 per cent in area under wheat while water shortage and loadshedding would also add to the injuries. "The country will miss the wheat sowing and production target if the wheat support price is further not increased in line with demands of farmers' organisations and country would hit by flour shortage crisis," KBP leaders warned.
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