Agriculturalists support MFN status for India

Urge government to help agriculture lower its costs of production.

HYDERABAD: The executive committee of the Sindh Chamber of Agricultre (SCA) has supported the federal cabinet’s decision to grant India the most favoured nation (MFN) status and gradually remove barriers to free trade. The committee met under SCA President Dr Syed Naveed Qamar on Friday. The resulting competition would be healthy for the agricultural sector of the country and help moderate costs of inputs, members said.

However, members of the committee reminded the government that around half of the 5600 goods approved for trade are related to the agricultural sector in which India enjoys lower costs of production as compared to Pakistan. “Urea is sold at Rs600 in India, as compared to Rs1,800 in Pakistan. Similarly, the rate of DAP fertilizer here is Rs2,400 higher than in India,” Qamar said. This makes it imperative for the government to act to equalise costs of production, he urged.

The committee urged the government to keep the country’s trade interests in sight when considering any decision so that any agreements reached are mutually beneficial, instead of favouring on side only. Members also exhorted the government to accommodate the agricultural sector in its pursuit of alternate energy. They said that solar energy should be introduced in agriculture through provision of such resources to tube-well installations. This will lower costs of production and also help mitigate the burden on resources, they said.

The meeting further suggested that the government ask the Alternate Energy Board to contact sugar mills for by-products that can be used in power generation, and provide electricity produced from it to tube well installations. Such power generation will be cheaper compared to other sources the meeting noted.

Published in The Express Tribune, March 3^rd, 2012.