Farmers organisations have welcomed the government decision to abolish sales tax on fertilisers and pesticides in the proposed budget for the year 2008-09 but termed the subsidy insufficient enhanced on DAP fertilisers.
Chairman Agri-Forum Pakistan, Ibrahim Mughal giving his initial reaction to Business Recorder said that enhancement of subsidy on DAP fertilisers was good omen but it could help improve the per acre yield if it is increased further. He also welcomed the decision of the government to abolish the sales tax on pesticides and fertilisers as well as enhancement in allocation for agricultural loans.
He expressed his reservations on abolishing duty on import of rice seed. Mughal termed the government decision to review wheat support price before every sowing season as a wise step. He also praised the brick lining project but regretted that announcement was not made for starting construction of Kalabagh Dam. Kisan Board Pakistan (KBP) President Sardar Zafar Hussein Khan also appreciated the government decision to abolish the sales tax on pesticides and fertilisers. Nevertheless, he said subsidy given on DAP fertilisers was insufficient. He complained that this subsidy never reached to the farmers rather companies take benefit of it.
He also said that allocation made for agricultural loans was not sufficient besides mark up on these loans should also be brought down to 4-percent only. Farmers Associates Pakistan (FAP) Director Hamid Malhi termed the enhancement of subsidy on DAP fertilisers from Rs 470 to Rs 1000 as insufficient and said that it never reaches to the farmers.
According to him, most of the incentives announced in the budget were ill planned. In his opinion, these steps would not make any impact on crop production.
Spokesperson of Punjab Water Council, Rabia Sultan while talking to Business Recorder stated that thrust of all the schemes announced in the budget were on water conservation and not only saving the 35 MAF water which we waste every year. In her opinion Pakistan's issue was building new dams and water reservoirs and not brick lining.
She claimed that subsidy given on DAP fertilisers never reached to the farmers and instead government should bring wheat price in line with the international prices to directly benefit the farmers.
She also regretted that there was no mention of drip and sprinkle irrigation scheme in the budget speech. Secretary Information, Kisan Board Pakistan (KBP) Akhtar Farooque said that the government should develop some mechanism that the subsidy given on DAP fertilisers should benefit the farmers. He said that amount allocated for agricultural loans should also be enhanced. He said that more funds should be allocated for dairy sector development keeping in view future requirements.