PESHAWAR: Rising prices of pesticides, fertilizers and other inputs, such as electricity, water and labour cost, have been the prime reasons of dwindling agricultural sector in the NWFP.
Pakistan has an agro-based economy and an estimated 60 per cent of the population is thought to be dependent on agriculture for their livelihood. Of late, the country has taken back a seat because of high rates of electricity, fertilizers, seeds, tractors, etc.
“We are producing top quality tobacco, but the returns are next to zero. Last year every farmer, of the estimated 100,000 in the province, lost Rs50, 000 each," said, Murad Ali Khan, president of the NWFP Kissan Board.
He said the NWFP-based farmers lost a total of Rs760million last year and this year they are adamant to cultivate tobacco crop because of the fears of impending losses.
He said the government collected Rs40billion from taxes on tobacco. The NWFP also earned Rs300million from tobacco duty.
The Standing Committee of the National Assembly on Agriculture that met on Dec 12 also acknowledged the problems of farmers and promised to resolve them, but such promises would be forgotten like the past, says Khan, who, along with the NWFP MNAs, attended the meeting.
Farmers say the tobacco board was mainly responsible for guiding and resolving farmers' problems, but it was more inclined towards safeguarding the interests of the cigarette-manufacturing companies.
Tobacco, being the main cash crop of the farmers, is bought from farmers at the rate of Rs57 per kg, whereas the cost incurred by the farmers was Rs80.
"This year, we have decided to cultivate alternate crops, such as wheat. The federal government will lose Rs40billion, which it had been receiving in the head of duties on the crop," he said.
Roads and other civic amenities in Swabi district, which is the producer of the finest tobacco in the world, are next to nil. The government didn't want to spend a paltry amount on the development of roads from the taxes it received on tobacco.
Furthermore, rates of electricity, oil and fertilizers are increasing at a sharp pace. Three months ago, the federal government announced a subsidy of Rs2 billion on fertilizers with a view to benefit farmers.
"Even President Musharraf announced that rate of fertilizer be lowered from Rs1,100 per 50 kg to Rs900. But the benefits are yet to reach the farmers," he said, adding the manufacturers were not ready to reduce the prices despite receiving Rs2 billion in subsidy.
Two-and-a-half years back, the government established 24 farmer services centres in all districts in line with the new agricultural policy. These centres were aimed at providing guidelines to farmers, apart from provision of seeds, fertilizers and resolution of water and livestock-related problems. But there is no tangible improvement in the situation because these centres are yet to start proper functioning. Besides, they are also located away from the farmers, who faced the problem of accessibility to them.
Likewise, farmers complained that they paid huge amount as electricity bills, while the same was nominal in India.
India is capturing market of rice, tobacco, onion and potatoes. A few years ago, Pakistan was regarded as leader in the export of these crops.
"Even, we are now importing these items from India," a Peshawar-based farmer, Niaz Ali Khan said.
He said people also wanted good quality products with cheaper prices, but the situation in Pakistan is simply "disastrous."
Likewise, sugarcane which happened to be a cash crop for the farmers is fast losing its charm due to the high cost of inputs.
The government has fixed Rs62 per kg for sugarcane, but the farmers are able to sell the commodity as high as Rs102. The reason is that the government had withdrawn tax on gur gani due to which farmers prefer to prepare gur the price of which is Rs200 per 5 kg.
This situation has left the sugar-manufacturing units to offer more prices to the farmers.
