LAHORE, Nov 13: As paddy price is sliding in the open market, farmers fear huge losses. Hamid Malhi of the Basmati Growers Association apprehends that the crisis will have a cyclical effect on other Rabi crops like wheat.

Talking to Dawn, he said the price had fallen between Rs470 to Rs500 against last year’s Rs560 per 40kg. In 2003, the price was even better: Rs600 per 40kg.

The government, according to him, normally announces an indicative price but it has not done so this time although input cost has risen sharply.

“Bank rates have gone up substantially to hurt traders and growers. Some 30 per cent increase in diesel price during the last one year has proven to be a proverbial last straw. All these factors have cut the paddy price down but failed to move the government,” Malhi said.

The government, says a farmer from Gujranwala, should realise that it is stoking off a bad and costly cyclical effect for farmers by allowing slide in paddy price. “The farmers are paying the price for pro-urban policies of the government. If it wants to save urban consumers from high agriculture prices, it must pay a direct subsidy to farmers or it must control input prices. Pakistan is perhaps now the only country in the world where agriculture is being put to taxes instead of subsidies.”

CROP: Punjab will get 10 per cent higher paddy production than the 4.9 million tonnes forecast for the current season, reports APP.