Budget 2015-16: Food ministry demands subsidy on agricultural inputs
Proposal comes in the face of regional competition, high production cost.
"The ministry hopes the proposal could be incorporated into the budget so that farmers can be compensated justly," National Food Security and Research Secretary Sirat Asghar. PHOTO: APP
ISLAMABAD:
With the budget only about a week away, the Ministry of National Food Security and Research has asked the Ministry of Finance to subsidise the agriculture sector.
The food ministry sought subsidy on agricultural inputs including seeds, fertilisers, pesticides and power tariff on tube wells in a bid to help farmers to curtail the cost of production of commodities.
Owing to the high cost of inputs, the growers of many crops are bearing the highest production cost in the region, which makes it difficult for the sector to compete with regional countries.
National Food Security and Research Secretary Sirat Asghar said the ministry had sent a detailed proposal to the finance ministry, seeking subsidy on agricultural inputs.
Asghar said prices of farm inputs were quite high and that could be blamed for the high cost of agricultural commodities. “The ministry hopes the proposal could be incorporated into the budget so that farmers can be compensated justly.”
Many parliamentarians have also given their approval to the subsidy and suggested an increase in the wheat support price, saying it will benefit the low-income group.
According to them, the provision of subsidy will not only reduce the cost of production, but will also increase exports of agricultural produce.
Currently, India and Bangladesh are offering heavy subsidies to their agriculture sectors, so their commodities are much cheaper compared to the produce from Pakistan.
A source in the Ministry of National Food Security and Research said the proposal had been sent to the finance ministry on the demand of farmer organisations. However, he added, the proposal may not be accepted since the food ministry had failed to frame a comprehensive plan.
Published in The Express Tribune, May 30th, 2015.
With the budget only about a week away, the Ministry of National Food Security and Research has asked the Ministry of Finance to subsidise the agriculture sector.
The food ministry sought subsidy on agricultural inputs including seeds, fertilisers, pesticides and power tariff on tube wells in a bid to help farmers to curtail the cost of production of commodities.
Owing to the high cost of inputs, the growers of many crops are bearing the highest production cost in the region, which makes it difficult for the sector to compete with regional countries.
National Food Security and Research Secretary Sirat Asghar said the ministry had sent a detailed proposal to the finance ministry, seeking subsidy on agricultural inputs.
Asghar said prices of farm inputs were quite high and that could be blamed for the high cost of agricultural commodities. “The ministry hopes the proposal could be incorporated into the budget so that farmers can be compensated justly.”
Many parliamentarians have also given their approval to the subsidy and suggested an increase in the wheat support price, saying it will benefit the low-income group.
According to them, the provision of subsidy will not only reduce the cost of production, but will also increase exports of agricultural produce.
Currently, India and Bangladesh are offering heavy subsidies to their agriculture sectors, so their commodities are much cheaper compared to the produce from Pakistan.
A source in the Ministry of National Food Security and Research said the proposal had been sent to the finance ministry on the demand of farmer organisations. However, he added, the proposal may not be accepted since the food ministry had failed to frame a comprehensive plan.
Published in The Express Tribune, May 30th, 2015.