Fearing public protest: NA panel rejects increase in crop support prices

Says it will cause inflation which will ultimately trigger public anger

ISLAMABAD:

A farmers lobby in the National Assembly Standing Committee on National Food Security and Research failed on Friday in motivating the committee members to recommend the government for increasing support prices for crops including wheat, rice and sugarcane.

The active members toeing the famers’ demand included MNAs Raza Hayat Hiraj and Rao Mohammad Ajmal Khan, who wanted the government to raise the wheat support price from Rs1,300 to Rs1,500 per 40 kg and sugarcane from the present Rs170 per 40 kg to Rs200. However, majority of the committee members and federal secretary National Food Security rejected the recommendations.

The two members later walked out from the meeting in protest, saying farmers are badly exploited for the last sixty years by depriving them of their due rights.



Earlier, Hiraj said that farmers are badly exploited by not only fixing less support price even the Trading Corporation of Pakistan delays the lifting of their products.

MNA Captain (retd) Muhammad Safder, who is also the son in law of Prime Minister Nawaz Sharif, opposed the suggestion of raising the wheat support price, saying that it will cause inflation and an increase in food prices which will ultimately trigger public anger against the government — something which could not be afforded at this time.

Muttahida Qaumi Movement MNA Muhammad Salman Khan Baloch also opposed the proposed increase in wheat support prices, saying that they belong to public and cannot support any anti-people decisions. However, government should protect the famers, he added.

Hiraj, who is also a farmer, made utmost efforts to motivate the committee to pass the recommendation for increasing wheat support price as well giving exemption to the agriculture inputs from the GST. However, the members said that exemption of agriculture inputs from the GST could only be recommended after discussing it with the FBR and finance ministry.

The committee chairman decided to summon officials from finance ministry and FBR next week to consider this option to subsidise the inputs in a bid to avoid any inflationary pressure on the public.

Sirat Asghar, Secretary Food Secretary and Research, said that if the wheat support price is increased then it would have multiple implications on the poor segment of the society. “This is not practicable at this stage and we can later discuss the exemption of the GST issue with FBR and other relevant departments before implementing it,” said Aghar.

He said that after the 18th Constitutional Amendment, agriculture subject has been devolved to the provinces and they are reducing allocations for this sector gradually. “There is need to sensitise the provinces about this key sector as the provinces should give them boost by increasing allocations rather reducing them”, he noted.

MNA Hiraj said that the 18th Constitutional Amendment has damaged the agriculture sector and he is planning to table a private members bill in the Assembly proposing constitutional amendment aimed at bringing the agriculture sector back as a federal subject.

Published in The Express Tribune, November 8^th, 2014.