Due to the increasing prices of agriculture inputs, the government might not be able to achieve 3.5 percent agriculture growth target for current fiscal, sources told Business Recorder on Thursday.
"Last year only 2.5 percent agriculture growth target was achieved against the set target of 4.5 percent. This year the target is 3.5 percent but considering the increase in the cost of production it is unlikely that the target would be achieved," sources said.
They said hike in input prices has increased the cost of production, which would result in decreased area under cultivation. "Although, in the budget 2008-09 the government has promised relief to the agriculture sector but unfortunately instead of providing relief to the farmers it added to their burden by increasing the prices of inputs such as electricity and diesel," sources maintained.
They further said total 0.6 million tractors and 0.8 million tube wells are being used in agriculture and approximately 2 billion litre of diesel is required to run them. But the substantial increase in the diesel prices is affecting their functioning, sources added. "Before the budget 2008-09 the price of diesel was Rs 38 per litre which has now reached Rs 56 per litre," sources said.