Farmer bodies condemn petroleum prices hike

23 Jul, 2008

The latest hike in diesel and other petroleum products prices has been strongly condemned by farmers' organisations, which said that the elected government has been implementing western agenda to wipe out Pakistan's agriculture sector. The farmers' bodies said that it was western agenda to shock Pakistan's economy, so they were pushing the government to increase diesel prices.
Thus the agriculture sector will be destroyed and the economy will collapse. The farmers' organisations have also rejected the increase in the prices of diesel and other petroleum products, terming it as a severe blow to the agricultural economy of the country. They demanded of the government to withdraw the increase in petroleum products, especially diesel which is crucial for the farmers during electricity shortage.
Khurshid Ahmed Kanju, provincial chief of Pakistan Kisan Board, said that Pakistan's agriculture sector consumes around 2 billion litres per annum. Thus, after the recent increase, an additional burden of Rs 20 billion has been shifted to the farmers, he remarked. He said that during the present government's tenure, the price of diesel has increased by Rs 27, putting an additional burden of Rs 54 billion on the agricultural economy. "It will simply kill the agriculture," remarked Ibrahim Mughal.
Vice-Chairman, Agri-Forum Pakistan Waqas Ilyas said that since the new government has taken charge, the price of diesel has increased to Rs 65 per litre from Rs 38, wreaking havoc on the agriculture sector.
Farmers said that on the one side the government is claiming to support agriculture by providing subsidy on fertilisers, while on the other side it has been increasing the prices of diesel and other petroleum products regularly. They said that fertiliser manufactures were taking advantage of subsidy paid by the government on fertilisers by increasing the prices.
President of Anjuman Kashtkaran Punjab, Abdul Ali Zakir Usmani, said that area under cultivation had reduced by 10 percent during the current year due to non-availability of canal water. An increase of 62 percent in the oil prices during the same period and long spell of load shedding had created a fear that the agri production might fall by 30 percent, he added.
He said that this reduction would cause an irreparable loss to the national economy as the government might have to import more during next year to avoid a food crisis, doubling the import bill. Pakistan would turn in to a consumer country despite being an agrarian economy.

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