Paddy crop is ready for harvesting in lower Sindh, although in areas banned for cultivation, harvesting has already started. For instance, paddy from Sanghar has started reaching rice mills in upper Sindh. Farmers in upper Sindh still have at least a fortnight or so to go for crop harvesting.

The crop across Sindh is healthy, the impact of pest attacks in lower Sindh being practically washed away by rains.

If heavy and devastating rains do not occur farmers expect a bumper crop. Subsidy on urea fertiliser has helped growers apply its required dozes in their fields which they otherwise avoided to keep their cost of production down.

“With the proper application of subsidised fertiliser, the yield per acre has gone up by an average of 10 maunds”

According to a seasoned rice grower, Haji Ameer Bux Pahore from Shikarpur, with every acre producing 10 maunds more than the usual output, the province expects a larger size of the crop compared to last year.

Subsidy on DAP fertiliser was given last year under the Prime Minister’s Rs340bn Kissan Package, announced ahead of local bodies elections.

The subsidy has reduced the DAP’s price to Rs2,600 from Rs4,000 per bag and that of urea to Rs1,400 from Rs1,850 per bag.

Farmers in upper Sindh — where much of the paddy is grown on the right bank of the river Indus — are the ones who will mainly get the advantage of the subsidy. Paddy cultivation in lower Sindh is only permitted in Kotri barrage’s non-perennial command.

The subsidy on fertilisers would possibly reduce cost of production by Rs5,000 or so per acre. Expenses of Rs15,000-Rs17,000 for land preparation remain unchanged as a major head of cost of production. Then comes the cost of hybrid seed which is around Rs1,000 per kg. Around 7kgs of seed are used in an acre.

According to Nabi Bux Sathio and another paddy grower, Nadeem Shah, the coarse variety (irrr-6) was selling at a price of Rs975 to Rs1,020 per 40kg at the initial stage of harvesting this season. The price may drop when the crop’s arrival in the market picks up pace.

But, they say, the rate is better than last year’s when it dropped to Rs700-Rs800 per 40kg after the initial harvest. Sathio recalls that a Rs800 to Rs825 per 40kg price was offered to growers during last year’s corresponding period.

Availability of irrigational water remained by and large satisfactory, but water shortage was reported in areas located on left bank of Sukkur barrage where paddy cultivation is banned. Climatic conditions have benefited the crop, especially rains in the first week of August, which had a positive bearing on the crop. The only exception was in low-lying areas where rainwater stagnated in fields, damaging the paddy.

The paddy sowing target set by the agriculture department of 750,000ha was met this season..

Small farmers however complained of rice millers securing 45kg instead of 40kg claiming high moisture content in paddy, while big farmers resist such deductions. Secondly the crop’s price depends largely on price trends in the international market, which remained depressed last year. Farmers’ feel they would be better-off if they got the average price of Rs900/40kg.

Published in Dawn, Business & Finance weekly, September 5th, 2016