IN a disheartening turn of events, provincial governments have rejected the proposal to share the Rs 32 billion subsidy burden for imported urea. The Ministry of Finance’s reluctance to share the cost, citing restrictions imposed under the IMF $3 billion standby arrangement, underscores the delicate economic situation. However, the provincial governments’ unwillingness to step up is particularly concerning, considering that agriculture is a devolved subject, and under the National Finance Commission (NFC), provinces receive a substantial share in revenue.
The significance of agriculture as the backbone of the economy cannot be overstated. It is paradoxical that while acknowledging its pivotal role, concrete steps are not taken to foster its growth. The provinces, with their increased share in revenue, should shoulder the responsibility of providing subsidies to farmers. By neglecting this responsibility, they risk hampering the very sector that sustains millions and drives the economy forward. The scarcity of urea fertilizer for farmers, coupled with reports of hoarding for future price hikes, paints a grim picture. The potential increase in urea prices not only threatens agricultural productivity but also poses a risk to consumers. Large-scale farmers, who can afford the higher costs, may pass them on to consumers, leading to a ripple effect on food commodity prices. The Consumer Price Index (CPI) basket, with a substantial 35-40 percent weight from the food and beverages group, rose by 29.7 percent year-on-year for December. Similarly, the Wholesale Price Index (WPI), where the food group accounts for 25-26 percent weight, increased by 27 percent last month. These statistics highlight the imminent threat to the overall cost of living if measures are not taken promptly. It is imperative to recognize that supporting farmers, especially the small ones, is crucial for uplifting the agriculture sector. The availability of affordable fertilizers is a key component of this support. The government needs to ensure that urea fertilizers reach local farmers at an affordable price. The provinces must re-evaluate their stance and work collaboratively with the federal government to find a sustainable solution that ensures the prosperity of the agriculture sector and, consequently, the overall economy. Ignoring these pressing issues risks not only the livelihoods of farmers but also the stability of the nation’s food supply and economic well-being.
