Karachi: The agriculture industry on Tuesday condemned the delay in implementing the revised electricity tariff of Rs 13 per unit for tube wells as promised by Prime Minister Shehbaz Sharif. The farmers demanded the power division to report the revision immediately.
The Economic Coordination Committee (ECC) on Monday approved the Prime Minister’s agriculture package but delayed the decision to provide subsidized electricity to tubewells due to the impact of subsidies worth about Rs 180 billion. However, this is a 180-degree turn from what was announced in his public address last month, said Pakistan Business Forum (PBF) CEO Ahmed Jawad.
As a result, notification in this regard has not been issued and relief has not been extended to the waiting farmers.
“The farming community will stand by what was announced by the Prime Minister,” he added, adding, “They are waiting for the notification. Secondly, they know that the Cabinet has to reject the ECC’s decision.” It is right.
Speaking to JEE News, Aamir Hayat Bhandara, co-founder of Agriculture Republic, said, “If this tariff is approved, the agriculture sector will be affected in a big way, especially in areas where tube wells are electrified. However, there is a dire need for a proper mechanism to implement this package effectively.
“There are some other things that are not clear and could have a significant impact like fertilizer packages and loans,” he said, adding, “The government should give direct incentives to farmers as opposed to fertilizers. Subsidy should be given and banks should be directed to give clean loans.”
He explained that currently farmers cannot get loans from banks for machinery, such as tractors, unless they have large land holdings.
“Though loans are offered to ordinary agro-industrialists, the need of the hour is to provide funds to smart farmers, whose practices are based on technology. They can give better results to the government in the long run, provided they Offer solutions so that the government does not have to provide subsidies in future. For example, providing funds for solarization of tube wells will definitely improve agriculture in Pakistan,” said Bhandara.
Chairperson of Balochistan Women Business Association Sana Durrani told The Express Tribune that “The long-standing demand of farmers for fixed rates for tubewells has largely been resolved.” Now, a fixed electricity tariff of Rs 13 per unit will help reduce input costs. But the announcement was made two weeks ago and is yet to be implemented.
“Announcing a huge relief package for farmers with a promise of Rs 1,800 billion loans to reform the agriculture sector is a good move by the Prime Minister. After all, farmers are the backbone of the country. ,” remarked the PBF CEO.
“Subsidized loans worth Rs 5 billion will be distributed to flood-affected farmers who do not have agricultural land and small loans will be waived off in the affected areas,” Jawad added.
Similarly, Rs 10 billion has been earmarked for small and medium enterprises (SMEs) in the agriculture sector and import of used tractors has been allowed for a period of five years.
However, he noted that “the price of diammonium phosphate (DAP) fertilizer per bag has also been reduced by Rs 2,500. Another decision which is yet to be notified.”
