Economic growth: MFN status for India opposed

Sindh Chamber of Agriculture says that it will destroy the country’s agricultural economy.

HYDERABAD: The Sindh Chamber of Agriculture (SCA) has opposed granting the Most Favourite Nation (MFN) status to India, saying that it will destroy the country’s agricultural economy.

At a meeting on Friday, the SCA members reiterated their support for the Pakistan Farmers Alliance, a consortium of the growers’ organisations, who are also against this decision.

SCA president Dr Nadeem Qamar said they can only accept this trade arrangement if the farmers in Pakistan are given the same subsidies, tax exemptions and support prices of the crops as their counterparts in India.

“A urea bag in India costs Rs610 in Pakistani currency but here we buy it at the rate of between Rs1,700 to Rs1,800 a bag,” he pointed out. “Likewise, in Pakistan the government gives the support price only on wheat but in India 25 agricultural produces receive support price.”

The fact that there 16 per cent general sales tax (GST) on agricultural inputs in Pakistan as compared to GST exemption in India denies a level playing field to Pakistani agriculturalists.

The commerce ministry has approved a list of 25 agricultural products that can be imported from the neighbouring country.

They include wheat, cotton, sugar, pulses, potatoes, lentils, gram and red chillies, etc.

Published in The Express Tribune, February 23^rd, 2013.