LAHORE, Oct 29: The Farmers Associate Pakistan says sugar cane and wheat support prices be fixed at Rs50 per maund and Rs350 per 40 kilograms, respectively.

Talking to newsmen after a FAP meeting on Tuesday, chairman Shah Mahmood Qureshi said the prices of diesel, electricity and fertilizers had rendered the current crop prices totally uncompetitive. The ministry of agriculture, in its summary to the government about the wheat support price, has also reportedly sought upward rate revision.

It was time, Mr Qureshi said, the government realized the problems of farmers and raise prices.

About cotton, the FAP chairman claimed that the domestic consumption was around 1.2 million bales whereas total production was expected to be one million. That left a gap of 200,000 bales. The world market was also not in recession. In such circumstance, farmers must not fall prey to periodic dips in prices manipulated by the All-Pakistan Textile Mills Association (APTMA).

Mr Qureshi said the farmers should not sell phutti for less than Rs950 and exercise regulatory control if prices dipped lower. “They must even try to withhold their stocks. International and domestic cotton markets favour farmers and they must not fall prey to APTMA’s manoeuvrings.”

Similarly, the sale of 386 variety of rice had almost ended and now only Super Basmati was left in the market. The government must ensure that farmers got at least Rs500 per 40kg. They, Mr Qureshi said, could not afford anything lower than that.

About recent agreement between the government and Asian Development Bank (ADB) for an agriculture loan of $350 million, he said according to the conditionalities of this loan, the government would liberalize trade and wind up provincial food departments. Liberalized trade would put local farmers in direct competition with international farmers who enjoyed huge subsidies. The West would start dumping its agricultural products in Pakistani market and render its agriculture totally uncompetitive, he feared.

In addition to that, milk and sugar industry would collapse, triggering a chain reaction. If food departments were also abolished, farmers would be left at the mercy of market forces.

The government had also reportedly been allowed to use the loan money for balance of payment. This was height of injustice. Farmers would face conditionalities of the loan and money would be used for some other purposes.

On top of it, he said, another loan of $100 million was being negotiated with the ADB and Rs500 million earmarked for a study to be completed by some foreign experts. If the study was necessary, it should be conducted by the locals, not foreigners, he insisted.