KARACHI: President FPCCI, Zakaria Usman, expressed his serious concern over the issue of food security and urged the Government to provide subsidy on agricultural products related to food security to compete in the international market.
In a letter to Federal Minister for Commerce, Engr. Khurram Dastagir Khan, President, Federation of Pakistan Chambers of Commerce and Industry (FPCCI) Zakaria Usman suggested that the government can provide subsidy on those agricultural products which are concerned with the global food security issue. Food processing industry, dairy products, agricultural equipment and machinery may be included in those products. The supply of energy and other utilities may be subsidised for food processing and agriculture industry.
According to FPCCI release here on Friday, the FPCCI Chief mentioned that due to its importance, this global issue was discussed in WTO 9th Ministerial Conference held in December 2013 at Bali, Indonesia. But it could not come with a definite solution and kept the matter pending till the next conference.
The declaration of the said conference to continue on the food security subsidy favours the Indian stance to grant subsidies to its various agri products. Pakistan is an agro-based country and is exporting agro based products to various countries. India is demanding subsidy on agricultural products under Agreement on Agriculture (AoA).
It would imbalance the regional trade and Pakistani products if this facility is given to India. Pakistan government should strongly object and oppose the demand of subsidy by India, Zakaria Usman emphasised.
Zakaria Usman also informed the Federal Commerce Minister that in such a situation the Indian farmers will be in a position to supply their products at cheaper prices with the help of government financial support (subsidies). Consequently, India will be able to export rice at cheaper price in the international market as compared to Pakistani rice.
Pakistani exporters will not be in a position to compete with Indian exporters because government of Pakistan cannot provide subsidies to its growers not because of WTO but because of IMF conditionality, as IMF agreement does not allow government to give any subsidy to its farmers or exporters, he said.
He proposed that inland freight subsidy can also be covered in this clause. However, the major factor of in-competitiveness of Pakistani products in the international markets is the cost of shipping.
The reason behind high cost of shipping is the lack of Pakistan's own shipping line.
He said that National Shipping Corporation has become inactive and freight outward from Pakistan is monopolised by a few international shipping lines.
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