7, April 2005	Thursday	27 Safar 1426

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LAHORE, April 6: One of the major manufacturers in the country has arbitrarily increased tractor price by Rs40,000, as the government denies permitting the increase, and calls the decision illegal. The increase has also provoked farmer bodies, who have threatened a protest movement against the manufacturer and the government for its inability to stop the move.

Information gleaned by this reporter reveals that the Millat Tractors, the manufacturer of the Massey Ferguson, is demanding additional Rs40,000 even from those farmers, who had booked tractors by making full advance payments.

One such farmer from Sheikhupura said he paid the full amount (Rs599,000) in November last. Now, when it was time for delivery, the manufacturer had asked him to make an additional payment of Rs40,000 or miss the chance, he added.

According to sources in the ministry of industries, the Millat Tractors had moved an application six months ago for enhancing a tractor’s price by Rs40,000. A meeting of two leading manufacturers — Millat and al-Ghazi — was convened by the ministry. The al-Ghazi Tractors (the manufacturer of Fiat) did not demand any raise in price. It maintained that prices of some of the parts had gone up in the international market, but they were not high enough to necessitate any increase in the domestic market.

Since international conditions affected both the manufacturers equally, the Millat Tractors was not granted any permission to increase the price, they said.

The company, however, kept on agitating the matter and took it to the National Assembly Standing Committee on Agriculture. A meeting was convened last week where the Millat Tractors was again disallowed to increase the price.

The company, according to farmers, had started demanding money and refusing delivery to those who were unable or unwilling to pay the additional amount.

“It is a totally illegal act on the part of the Millat Tractors,” said Federal Industries Minister Jehangir Khan Tareen.

He said the Millat Tractors wanted to increase price for the last many months, but was refused by the government. However, it was charging additional price in clear violation of law, he said.

Federal Minister for Food, Agriculture and Livestock Sikandar Hayat Khan Bosan also criticized the increase in tractor prices. “The ministry told the manufacturer that it could not unilaterally increase price and doing so would be illegal,” he told Dawn.

It could not charge any additional money till a decision was taken on the issue, but it was doing so. He said his ministry had moved a summary to the ministry of industries, and the government would soon look at the options.

No one from the Millat Tractors was available for comments in spite of repeated calls to the managing-director and the chief executive officer.

Meanwhile, the Pakistan Kissan Board has threatened to launch a protest movement if the government did not move quickly to take an appropriate decision.

In an emergency meeting of its central leadership, the KBP noted that the farmers could not pay such an exorbitant increase even if they wanted to. “Wheat crop is standing in the field and farmers have no money. They will rather be needing tractors to harvest the crop,” they said.