THE Economic Coordination Committee of the Cabinet (ECC) has approved a subsidy of Rs 1,000 on fertilizer besides subsidy on weedicides and fungicides, which would surely come as a significant relief to farmers at the time of sowing of Rabi crop. Together with increase in the support price, the decision would surely incentivize farmers to grow more wheat to offset its shortage and stabilize the fluctuating prices.
Pakistan is an agricultural country with an elaborate irrigation system and therefore, right policies and proper focus on agriculture cannot only make the country self-sufficient in different food grains but also produce surplus for exports. In fact, despite lack of incentives, our farmers worked hard and produced surplus in the past but their crops were allowed to spoil in the absence of proper storage facilities and marketing strategies. It was because of the neglect that the country is currently facing a serious shortage of wheat and the commodity is being imported at expense of hard-earned foreign exchange. We have been emphasizing in these columns, time and again, that the cost of input be reduced to give real incentives to growers and shield the poor against the possibility of sharp increase in the prices of wheat flour as we are experiencing these days. However, instead of giving incentives for reduction of cost of production, the Government has mainly been banking on unrealistic increase in the support price to the detriment of the common man. Therefore, the decision to provide a subsidy of Rs. 1,000 per bag on fertilizer and also on weedicides and fungicides is a step in the right direction and one hopes that the ministerial committee assigned the task of devising a package of incentives for farmers would come out with additional recommendations on how to bring down prices of other input including implements. It is, however, apprehended that the prices of wheat and wheat flour, which have been alarmingly raised by the mafia are unlikely to reverse especially following decision of the Sindh Government to fix minimum wheat support price at Rs. 2,000/- per 40 kilogram as against the new price of Rs. 1,600 fixed by the Federal Cabinet. The issue needs to be debate threadbare and a solution as it has direct bearing for the people.
