Paapam concerned over shelving tractor scheme rumours

LAHORE: The Pakistan Association of Auto Parts and Accessories Manufactures (Paapam) has expressed concern on the rumours that after the announcement of the farmers' package by the federal government, the provincial governments of Sindh and Punjab have decided to shelve the tractor schemes for 2015.
Paapam Chairman Mumshad Ali said that as part of the tractor supply chain Paapam have never been taken into confidence before the launch or withdrawal of such schemes.
He said there is still room to improve the model of the scheme to match supply and demand.
These schemes should be launched on long-term basis rather than short-term, keeping in view the total shortage of farm tractors in the country.
Ali said these schemes should be based on shortage of tractors / production capacity of the industry and should aim at maximising the net of the subsidy.
In the past, only 5,000 to 10,000 tractors have been subsidised, and more farmers need to benefit from the schemes.
The lag between the announcement of the scheme and its actual launch is also detrimental to this biannual cyclic tractor industry, he added.
The Paapam chairman said the manufacturing industry requires stable growth and volumes and the current model of the scheme leads to erratic volumes and growth leading to boom and bust phenomena, which has proved devastating for the industry in the past.
He urged the governments of Sindh and Punjab to discuss the issue with the industry to improve the tractor scheme model and to multiply its affect on the country's economy.