June 10, 2007	Sunday	Jamadi-ul-Awwal 24, 1428

LAHORE, June 9: The federal budget of 2007-2008 speaks high of the farm sector but offers a little to farmers.

Minister of State for Finance Omer Ayub continued praising the farm sector for five minutes or so but concluded the so-called incentives within one-and-a-half minutes, says Farmers Associates Pakistan’s Muhammad Idrees.

The minister announced tube-wells operated on electricity would get a 5 per cent subsidy and a Rs70 per bag financial backing on DAP fertiliser. The impact of the earlier Rs400 per DAP bag subsidy has yet to reach the farmers.

“Importers, dealers, distributors and retailers have not and will not let the relief pass on to the end-user because there is no implementation mechanism in district governments,” maintained the FAP official.

“Of 600,000 tube-wells in the country, 80 per cent are in Punjab. The provincial government grants a 25 per cent subsidy to those electric tube-wells operated during nights.

“The incentive announced in the federal budget would have nominal impact as no relief for 450,000 tube-wells operated on diesel, has been announced.

“The ban on the export of wheat was the biggest misfortune for the farmer. In fact, the government has earned Rs115 per 40 kilogramme by banning the export of 35 million tonnes, depriving the farmer of Rs250 billion.

“The livestock and dairy development boards were constituted two years ago.

“What have these two bodies done? What is their tangible output?

The measures like setting up of farmers markets where peasants will directly sell their produce to the end-users, and introduction of genetically modified cotton seeds are conceptual decisions.

We doubt it will have any relief in the given circumstances in Pakistan.

Will the powerful middleman allow the peasant enter such markets if these are set up?” observed Mr Idrees.