LAHORE, June 11: Farmers on Wednesday showed mixed reaction to the federal budget, cautiously praising abolishing of general sales tax on pesticides and enhancing subsidy on DAP fertiliser but bemoaning ignoring of water reservoirs.
Though the government has shown its good intensions by lifting GST on fertiliser and also subsidising DAP, but how far it succeeds in actually bringing the prices down remains to be seen, they said.
Even previous government also announced subsidy on DAP, but it largely went to importers or manufacturers rather than being passed on to farmers. That is why farmers wanted their loans to be subsidised instead. But, the government has been on beaten track, they said.
“It sounds ridiculous that government on the one hand appreciated the need of dams but on the other failed to announce any new dam,” says Hamid Malhi of the Farmers Associates Pakistan (FAP).
The government should have announced construction of Kalabagh Dam and after it a series of other dams. But nothing has been announced on this front, which is lamentable to say the least, he says and adds: “The multinationals have again had their way by getting permission to import duty-free seed of rice. Who does not know that Pakistan has the best variety of rice and there was hardly any need to import hybrid seed, especially when it has wreaked great damage to farmers last year. But, who can resist multinationals here?”
Overall, it is old budget in new world. There are promises, but it remains to be seen how much of them actually translate into reality, Malhi adds.
One looks at the yearly profits statement of fertiliser companies which reveal where the subsidy ends up. The manufacturers’ rate of profit is much higher than users of fertilisers, but the government keeps announcing subsidy without consulting farmers, he laments.
Overall it sounds to be good budget, but one has to see how it fairs in reality, says Ibrahim Mughal of the AgriForum Pakistan. The government has announced subsidy of Rs30 billion that would go largely to the DAP fertiliser. It must ensure that all bags of the DAP have price printed on them.
The dealers should also be compelled to display price list at their shops and it should also watch against the possibility of importers further increasing prices without any reason. If all these steps are not taken, the possibility of major portion of subsidy ending in wrong hands could not be ruled out, he adds.