Recent increase in diesel prices will put an extra burden of around Rs 18 billion on the agricultural sector and badly hit the efforts of the farming community to make it a profitable business.
Agricultural sector is being attacked at two fronts, one is that its produce is not being bought at the rates announced by the government and secondly by increase in the petroleum products prices, Chairman Pakistan Agri-Forum, Muhammad Ibrahim Mughal said this while talking to Business Recorder here on Tuesday.
He said that the government had announced Rs 1250 per maund as the support price for Basmati paddy but there was no one to buy it even at Rs 1,000 per maund. It was causing a loss of billions of rupees to the farmers. Coming to the fresh increase in petroleum product prices, Mughal stated that there were 8,50,000 tube-wells being operated by the farmers through out the country.
While there were 700,000 tractors, harvesters and other farm machinery also which was also operated on diesel. The annual consumption of diesel of this sector was around three billion litres. Thus the fresh increase of Rs 5.25 means that the agricultural sector had to bear the burden of around Rs 18 billion per annum. Agri Forum Chairman questioned that when the farmer was suffering loss in shape of lower prices and utility prices were also being raised then how this sector would survive.
He also claimed that wheat sowing was already hit due to lower paddy prices while this new increase in diesel prices multiplied by over-charging of certified seed would not make it possible for the farmer to continue. He claimed that official price of certified seed bag was Rs 1860 but in the market it was available at Rs 2300.
He urged the government that now it should review the support price of wheat and prices of agricultural produce should be revised in line with the increase in input prices. Secretary General Kisan Board Pakistan (KBP) while expressing his concern over the new increase in petrol and diesel prices said that it would make survival of the farmers impossible.
He said that it would put additional financial burden on a grower, who was already under severe pressure due to lower produce rates and high prices of seed, fertilisers and others. He urged the government to immediately withdraw the increase in petroleum products so that masses especially farmers could heave a sigh of relief. Director Farmers Associates Pakistan (FAP) Rasheed Baig while criticising the government decision of increasing petrol and diesel prices said that this decision should be reversed immediately.
He said now-a-days farming has become mechanised and growers use tractors, harvesters, tube-wells and other machinery. While small farmers also use peter engines to irrigate their lands. This engine was also run on diesel and its operation cost was already very high which further go upward.