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KARACHI, June 11: The Sindh Abadgar Board has welcomed the removal of 15 per cent GST on insecticides in the new budget but described the raise in subsidy on DAP from Rs370 to Rs1,000 per 50 kg bag as insufficient.
Talking to Dawn from Hyderabad on telephone, board’s general secretary Mahmood Nawaz said with the current rate of subsidy, farmers would still be paying Rs2,500 to 2,600 per bag against the market price of Rs3100.
He said in India growers are provided DAP at Rs944 per bag and the local farmers had expected a raise in subsidy which could bring the DAP price for farmers to Rs1,100 to Rs1,200 per bag.
He said due to reduced use of inputs, like fertiliser and pesticides, and due to their high prices, per acre yield of wheat has declined to 24.5 maund compared to 60 maund per acre in India and Egypt.
Mahmood welcomed the removal of GST on pesticides as a right step but complained that the horticulture sector, which has the potential of earning good foreign exchange for the country was totally ignored in the new budget.
The board had suggested setting up of economic zones for mango, tomato and chillies in Mirpurkhas, Thatta and Kunri with special incentives in power tariff with a view to cut 30 to 40 per cent wastages through setting a chain of cold storages and the surplus could be used for increasing exports.
Mahmood further said that no subsidy was given on bank loans for the farm sector which is presently getting loans from commercial banks at 14-15 per cent interest rates.
The government should provide subsidy on bank loans to reduce the mark-up to nine per cent at which the Zarai Traqiati Bank is advancing loans.
Agriculture Chamber of Commerce and Industry chairman Syed Qamar Zaman Shah said that the measures announced in the budget, especially waiver of 15 per cent GST on pesticides and increase in subsidy on DAP, would boost farm production.
He said that the greater use of inputs by the farmers, such as fertiliser and pesticides, would result in bumper crop ensuring food security and prosperity for the rural population.
INDUSTRY: Industry leaders have described incentives for the agriculture sector as a right step, which would reduce food prices but at the same time complained that the new budget had totally ignored the industry.
Commenting on the new budget, Naim Ilyas Khanani, Chairman, Port Qasim Association of Trade and Industry, said that the raise in GST rate by one per cent would result in promotion of undocumented economy and would benefit the un-organised sector.
He said that the industry had proposed cut in the GST rates and increase in the tax net to generate more revenue. There was also no incentive in the new budget on hydel power generation, which is urgently required to provide relief to the people suffering from long power breakdowns.
