Growers split over budget, dub allocation as peanuts

LAHORE/KARACHI: Farmer organisations have expressed mixed vibes over the federal budget for the year 2021-22, saying the government’s hyped pro-grower stance failed to reflect in the allocations.

Hassan Ali Chaniho, a progressive farmer belonging to Sanghar district of Sindh, said the budget was devoid of pro-farmer steps despite the challenges facing the agriculture sector.

“The problems like low productivity of cotton, minimal mechanisation, water scarcity, farm credit issues, etc have not been addressed, while allocating funds for the federal budget 2021-22,” Chaniho said.

“It is astonishing to note that no attention is being paid to reviving cotton in the country.”

He said the production of silver fiber had reduced to mere six million bales, down 60 percent compared with the peak output yet -one of the biggest failures for the country’s agriculture sector.

“We are paying a heavy price for falling cotton production as our textile sector is struggling to source raw material, while the plight of poor cotton growers is worsening by the day,” the farmer leader said.

Chaniho also expressed dismay over what he called earmarking peanuts for agriculture creditline, saying it was one of the major grey-areas of farm sector.

“Without strengthening farmers' viability, the agriculture sector cannot progress,” he observed. Khalid Khokhar, President Pakistan Kissan Ittehad said he had not seen anything substantial in the federal budget for the promotion of agriculture research, a pivotal factor for good production.

Besides, he said the government also did not come up with a plan to cut the cost of production for the farmers.

“Same is with the case with a comprehensive plan of increasing yield,” Khokhar said.

On the other hand, he however heaved a sigh of relief as the government did not levy 10 percent GST on fertilisers and pesticides.

Farooq Bajwa, Founding Convener of Punjab Water Council outrightly rejected the budget saying the government failed to jumpstart work on dams.

“The biggest threat to the agriculture sector has been water shortage and the government seems completely ignorant to this fact,” he said.

Bajwa also criticised the government for not announcing subsidy on DAP fertiliser and its failure to provide any relief to farmers on power tariff.

Ejaz Rao, a progressive grower hailing from Bahawalpur District, said government had not allocated anything for cottonseed research and development.

“The country is importing wheat and pulses. The government should have offered incentives to our farmers to grow and adopt best crop practices coupled with pest protection techniques to increase yield and production of food crops,” Rao said.

Kissan Board Pakistan termed the federal budget as eyewash, saying they were unable to see any real plan for boosting agricultural productivity.

The government showed sympathy for farmers; however, it failed to translate it into a workable plan, said Ch Shaukat Ali Chaddarh, President Kissan Board Pakistan.

Meanwhile, agriculturists and vegetable and fruit exporters said the sector was in dire need of an allocation far greater than Rs12 billion.

Waheed Ahmed, patron-in-chief, Fruits and Vegetables Exporters, Importers and Merchants Association (PFVA), calling the federal budget balanced, said the government announcement of developing cold storages was good but they should be focused on research and development.

“Cost of production is an issue in Pakistan. We eat the most expensive bread in the world,” he said.

He said that the allocation of Rs12 billion for the agriculture sector was grossly insufficient. “At least Rs50 billion should have been earmarked for agriculture and increased to Rs100 billion in next three years,” he said.

Ahmed said increasing yield of the crops was necessary for Pakistan and that could be achieved through R&D (research and development) while shelf life of almost all seeds had ended here.

“There has been no focus on agriculture in our country during last 20 years,” he said. “Climate change and global warming have affected our crops.”

He said as a short-term measure, governments provided subsidy on fertilisers but there was need of a long-term policy in this regard.

He appreciated the announcement for the establishment of National Agriculture Emergency Programme.

Ahmed said until they have surplus products, they would not be able to export. “We have to adopt technology and modern ways to increase yield. We have to come out of the flood irrigation system and manage water,” he said.

Federation of Pakistan Chambers of Commerce and Industry’s (FPCCI) former agriculture chief, Ahmad Jawad slammed the budget as “too little, too late” in terms of creating fiscal space for agriculture sector.

He said despite two-digit inflation and record growth in major agriculture crops in the fiscal year of 2020-21, the government once again offered peanuts. He however appreciated the interest-free loan facility to small farmers for purchasing farm machinery and sowing crops.

Unfolding the details, Jawad stated there was no increase in the agriculture credit facility. No incentive was announced in the budget speech for increasing agriculture exports, promoting new agriculture startups, increasing subsidy on fertilisers, or developing horticulture sector, a major shareholder in the country exports, he said.

However, he said, tax exemption on the storage facility for agriculture crops was a welcome step.

He further said government fixed the agriculture growth target at 3.5 percent for the coming fiscal year.

“It seems agriculturists will achieve the target on their own and once again provide due support to the country GDP target for the year of 2021-22,” Jawad said.