Rs2b subsidy marked for tractor purchase

Govt will help set up atmospheric control stores, hot water treatment plants


Salman Siddiqui June 06, 2017
PHOTO: EXPRESS

KARACHI: The Sindh government has put aside Rs6.98 billion for improving agriculture produce, establishment of supply chain and building a stabilised pricing mechanism for fiscal year 2017-18 including Rs2 billion in subsidy for farmers on tractor purchase, according to budget documents.

“Without agriculture, it is not possible to have a city, stock market, banks, university, church or army. Agriculture is the foundation of civilisation and any stable economy,” Sindh Chief Minister Syed Murad Ali Shah said while quoting Zimbabwean scientist Allan Savory in his budget speech on Monday.

Budget 2017-18: Much still needs to be done, says finance minister

The allocation of Rs2-billion subsidy includes Rs1.5 billion under previous year’s schemes and another Rs500 million for new schemes.

The other subsidy scheme will help support establishment of two atmospheric control stores and two hot water treatment plants on farmers’ fields under a programme titled “Preservation and storage facility of fruits and vegetables through hot water treatment and controlled atmospheric stores”, costing Rs242 million.



The hot water treatment plants help remove insects and pests from fruits and vegetables, especially mango, and increase their shelf life.

Farmers will also be provided sour water pumps and tube wells at subsidised rates, which will cost the government Rs563.8 million.

The provincial government has allocated Rs75 million for the provision of combined harvesters for wheat and paddy crops at 50% subsidy to the farmers. It has earmarked Rs100 million for the provision of small agriculture power tillers/ paddy reapers and tillage equipment at a subsidised cost.

Another Rs100 million has been earmarked for the provision of power drilling rigs on the basis of hire charges.

For the next fiscal year 2017-18, the federal government has enhanced the agriculture credit target for the entire country to Rs1,001 billion compared to the outgoing year’s Rs700 billion, an increase of 43%.

Nationwide, the agriculture sector has bounced back strongly in FY17 by posting a growth of 3.46% - its highest in the last five years, which greatly helped the government in achieving the overall economic growth of 5.3%.

The agriculture sector met its growth target of 3.5% mainly due to the increase in disbursement of credit to the farmers. From July to March FY17, the credit disbursement was 23% higher compared to the previous year.

The growth in crops was registered at 3.02% against negative growth of 4.97% in the same period of previous year. This growth is also the highest in the past five years, pointing to an important aspect that the agriculture growth mainly depends on the performance of crops because the performance of livestock - a sector that contributes 58% in the agriculture sector - has remained quite stable in the five-year period.

Livestock, fisheries and irrigation

The provincial government has allocated Rs1.7 billion for livestock and fisheries and another Rs40 billion for the development of irrigation system.

“Faced with acute water scarcity, it is of utmost importance that water supplies are protected, water channels and canals are maintained and repaired regularly to avoid the loss of valuable water resources and existing resources are distributed efficiently in a sustainable fashion that is friendly to the environment,” the budget document said.

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“We have worked out foreign aid from the World Bank to the tune of Rs8.3 billion for Rs9.9-billion Sindh Resilience Project for Strengthening Flood Embankments and Construction of Small Dams in Sindh,” Shah said.

Published in The Express Tribune, June 6th, 2017.

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