Agriculture sector: Farmers suffer as crop prices remain low in markets

Committee sets production targets for Kharif 2015-16 crops.

ISLAMABAD: The Federal Committee on Agriculture (FCA) has noted that despite bumper crops for three consecutive seasons, farmers have not seen a marked increase in their income because of low agriculture product prices in domestic and international markets.

This was stated by Federal Minister of Food Security and Research Sikander Hayat Khan Bosan at a press conference here on Thursday, after chairing an FCA meeting for the Kharif 2015-16 season.

The FCA, a top inter-governmental consultative body for the agriculture sector, reviewed the performance of Rabi crops (2014-15) and the production plan for Kharif crops (2015-16). It also discussed the supply position of agricultural inputs for the Kharif season.

The committee observed that there was lower demand for wheat, rice, potato and sugarcane in the international market, which also had an impact on the domestic market.

“Keeping in view the current situation, we are recommending to the government to reduce the cost of production of agricultural products,” Bosan said.

“It looks like the sole solution in order to compensate the growers amid low prices of their produce in domestic and international markets.”



The committee was informed that wheat production in 2014-15 was estimated at 25.03 million tons from an area of 9.17 million hectares as revised estimates brought the target down from 25.48 million tons.

Working papers of the meeting showed that the actual wheat production target was 26 million tons, which has now been reduced to 25.03 million tons.

Gram crop 2014-15 was estimated at around 429,900 tons from an area of 959,500 hectares. The production of other crops such as maize, chilli and masoor were also discussed.

The committee was informed that production of masoor fell due to recent rains, particularly in Punjab.

Additionally, the committee fixed the sugarcane production target at 68.03 million tons from an area of 1.14 million hectares, compared to last year’s output of 63.94 million tons and area of 1.12 million hectares.

Representatives of provincial agriculture departments emphasised the need of adequate supply of urea and phosphate fertilisers during the Kharif season.

The production target for rice was fixed at 6.90 million tons from an area of 2.84 million hectares. The target for maize crop 2015-16 was set at 4.61 million tons and for moong crop the output was expected to be 102,000 tons.

The Meteorological Department reported that the data of Indus River System Authority (Irsa) showed that water levels in the reservoirs would be better than last year. The department was of the view that rain prospects were also better in all parts of the country.

The committee was informed that certified seed availability had increased in this year’s Kharif season. A representative of the State Bank of Pakistan said the allocation of credit for agriculture purposes had substantially increased.

Published in The Express Tribune, May 1^st,  2015.

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