Former Advisor to Prime Minister on Finance Dr Hafeez Pasha has asked the government to give highest priority to the agriculture sector battling against the falling global commodity crisis as its failure would have serious impact on the industry.
Talking to Business Recorder, Hafeez Pasha regretted that failure of agriculture sector would have serious ramification on over all industry as 68 percent of the industry in Punjab is agro based. The agriculture sector, which contributes over 20 percent to the GDP, has been badly hit due to crisis of commodity prices in the international market because it was totally neglected during Musharraf's rule and is also least priority of the present government.
He said the PM has announced a relief package for the farmers to support them against the crisis of commodity prices in the international market but it was not implemented in the true spirit. Per acre Rs 5000 was disbursed to the farmers in Punjab only and was not made available to the farmers in other provinces. As a result, he said per acre compensation of Rs 5000 was not reached to 30 percent farmers.
The cut in price of fertiliser and urea was announced Rs 500 per sack but price was reduced by Rs 50 to Rs 100 per sack. The PM also announced reduction in power tariff for agriculture sector and that was also not implemented. The government promised to make an increase of Rs 500 to Rs 600 billion in availability of credit to farmer but increase in credit was very nominal.
Pasha stated production of agriculture sector has gone down by 30 percent and farmers suffered a loss of Rs 20,000 per acre due to decline in commodity prices in the global market. He stated that cycle of low commodity prices in the international market is expected to last for the next five years; therefore, government must take some measures to counter their impact on farmers at home.
He said that price of wheat has fallen by 50 percent, rice 30 percent and cotton 20 percent in the international market. Hafeez Pasha urged the government to bring the coverage of support price to the level of 1980 and 1990 when it was available for six to seven major crops and later on reduced to two crops when former military ruler Pervez Musharraf was in power.
The government must reduce sales tax on fertiliser pesticide and electricity and must ensure that crops loan insurance scheme was available to the farmers. He also urged the government to give Rs 30 billion subsidy on export of two million tons wheat. He said that there are 7.4 million farmers in the country as well as 24 million workers are attached with the sector and government must protect them. He said that India was providing support price to 25 items.
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