2011 termed worst year for agriculture sector

ZAHID BAIG

LAHORE: Farmers' representatives and agriculturists have termed the current year as the worst ever period for the agricultural sector, which witnessed steep increase in agricultural input prices, levying of General Sales Tax (GST) and decline in the prices of different crops, hampering the growth of the sector as well as denying prosperity to the growers.

Farmers Associates Pakistan (FAP) President Dr Tariq Bucha while talking to Business Recorder here on Tuesday said that levy of General Sales Tax (GST) put an additional burden of Rs 84 billion on the growers. He termed levy of GST as a step aimed at killing this sector besides damaging the allied industries. 'Tractors sales have reduced sharply as the growers have no more purchasing power for tractors and other agricultural implements,' Bucha remarked.

Bucha also claimed that the Zarai Tarqiati Bank Limited (ZTBL) issued no new loans during the current year thus denying access to 'financial resources' to the small growers. He said, besides many wrong decisions, which hurt the agriculture, the government also imported potato and maize at a juncture when these commodities were also in abundance in the country. 'As a result of which prices fell and there was no buyer of Pakistani potato in the market,' he alleged.

He also criticised the government decision of stopping supply of gas to fertilizer manufacturing units and said this step was equal to endangering the food security of the country. Urea fertilizer bag, which had registered an increase of Rs 150 in eight years added Rs 850 in just one year (2011) due to wrong steps of the government, he concluded.

Agri Forum Pakistan Chairman Muhammad Ibrahim Mughal also termed the year 2011 as the worst year for agriculture. He claimed that the country missed almost all major crop targets. The government had fixed the cotton crop target of 14.5 million bales, while it was being expected that the country would miss it by 10-12 million bales. Similarly, the government fixed wheat-sowing target of 22 million acre, whereas it would be missed by over 2.1 million acres due to high input cost and shortage of much needed inputs, he added.

He pointed out that huge increase in agriculture and food products' imports further disturbed the trade balance, which was a matter of great concern for an agricultural economy. He underscored that it was a worst year for formers as fertiliser prices witnessed an unprecedented of over Rs 800 in 2011, mainly because of the suspension of natural gas supply to fertiliser plants.

The country was already short of urea fertiliser and absence of price control further aggravated the situation by offering an opportunity to profiteers and hoarders. Conservative estimates indicated that profiteers had fleeced some Rs 10 billion from poor farmers by exploiting the situation, he maintained.

Kisan Board Pakistan (KBP) Central Secretary Information Haji Muhammad Ramzan was also critical of the government policies, which according to him, ruined the growth prospects for farmers and agriculture sector this year. He claimed that the growers received record low prices of their produce this year. Prices of major crops including cotton, rice and sugarcane virtually halved. 'Farmers, who got Rs 5000 per maund for cotton last year, could hardly manage Rs 2000 for it, similarly sugarcane which was sold at Rs 200 last year, growers were practically getting only Rs 100 this year,' he remarked.

He said sharp increase in agricultural input prices, which were doubled during the current year, added to the worries of the growers as they were finding it very difficult to continue, he concluded.