The farming community has expressed strong reservations over the Federal Budget 2005-06. President of Sindh Abadgar Board, Abdul Majeed Nizamani, while talking to Business Recorder, said that there was lot of expectations about relief packages for development of agriculture sector, but the budget proposals are not up to the expectations of farming community.
He said that some steps taken for betterment of agriculture sectors are good, as they serve the elite class, but the overall budget does not represent the aspirations of 95 percent small growers who are the 'bank' of agriculture sector. He warned that if they collapse the whole agriculture sector would collapse.
He said no concrete steps have been taken for reducing costs of agriculture inputs, which have significantly increased the cost of production. Nor any measures were announced to improve the marketing system of agriculture produce, as the present markets are plagued with corruption, ineptness and financial mismanagement.
He said that no steps have been announced to develop the infrastructure to enable the farmers to market their perishable items in urban markets.
He expressed concern over the allocation of Rs 272 billion for private sector development and said that it has been observed that more often than not the amount allocated under the head had lapsed for reasons best known to the executives. He said that it should be ensured that the allocation is utilised in a transparent manner and should not be allowed to lapse.
He called for allocating 0.8 percent of GDP for agricultural research and Rs 200 billion, instead of Rs100 billion, for the agriculture sector. Mehmood Nawaz, general secretary, SAB, said that reduction in taxes would not serve the purpose unless establishment of agro-based industry in rural areas was not encouraged and a strong infrastructure was not provided.
Dr Zullfiqar Usufani said that reduction of 5 percent duty on urea and duty-free import of tractors were good steps but it should also include duty-free import of old and reconditioned agriculture machinery. The Board has also convened its working committee meeting to discuss in detail the budget proposals.