15 October 2004	Friday	29 Shaban 1425

LAHORE, Oct 14: The agriculture sector is in deep crises and the government should respond to the situation by finding a solution to water shortage, marketing crisis and price hike of inputs.

It was demanded by Farmers Associates of Pakistan (FAP) Chairman Shah Mahmood Qureshi at a press conference here on Thursday. He said farmers were trapped in a vicious circle of debt, skyrocketing cost of inputs, water shortage and total neglect of the sector.

Agriculture growth was already showing a negative trend due to non-implementation of government decisions and inconsistent policies of the officialdom. The government had failed to implement its decisions announced under the so-called Kissan Package.

The price of DAP had not gone down in spite of clear announcement by the government. Same was the case with urea price, which continued rising despite claims to the contrary, he maintained.

He claimed that shortage and price hike of urea would continue in coming months as the government had imported it on a very high price as compared to the local rates. In the situation, the middlemen would fleece growers. He demanded immediate step by the government to address the issue.

He also contradicted government's claim about reduction of rates of pesticides because of tax exemption on the import of active ingredients. The government announced withdrawal of import duty and other taxes on tractors but farmers were paying a premium of Rs90,000 on every delivery, he claimed. A tractor company has increased the price of a unit by Rs40,000.

Mr Qureshi belied the government claim of breaking the yoke of the World Bank and the IMF. "They are now part of our policies," he said. "If what government is saying is true, it immediately withdraw GST on pesticides and other inputs. Such incentives would give a boost to the wheat production in the Rabi season."

Referring to impeding water crisis, he said if the government did not take any step to dissipate adverse affects of water shortage, there would soon be a disastrous situation.

"If the government is truly farmers-friendly, which it claims to be, it should reduce electricity tariff for agriculture by 50 per cent. Similarly, the government should give 50 per cent relief to farmers on water service tax (abiana) as they are facing 40 to 56 per cent shortage of water."

The FAP chief said the government should also give subsidy to farmers on light diesel oil, being used for agriculture purposes. He expressed the fear that the government would increase diesel price in near future which would badly affect farmers.

He underlined the need to introduce the latest techniques of drip and sprinkle irrigation to counter the water shortage. Flood irrigation was no more an option for agriculture purposes as conservation of water has become an important issue.

Mr Qureshi said the government should also expedite process of giving connection of agriculture tubewells besides providing laser levelling equipment across the country.

The laser levelling equipment of the water management of the agriculture department was lying waste in many districts. The government should rectify this problem on priority basis, he added.

He said political intervention was spoiling lining of water courses as Nazims of various districts were imposing their will on it. The government should completely clear the project of political intervention.