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Business Recorder
3 days ago
- Business
- Business Recorder
Sindh farmers ask FBR to reduce duty on tractors
ISLAMABAD: Small farmers from Sindh have approached Federal Board of Revenue (FBR) to reduce custom duty on imported tractors from 15 percent to 5 percent under massive tariff rationalisation plan to be implemented in budget (2025-26) to support agriculture sector. Farmers have also proposed FBR Chairman Rashid Mahmood to reduce the existing sales tax rate on locally manufactured and imported tractors from 14 percent to 5 percent, enabling the farmers to purchase tractors. This is not an exemption, but only a reduced rate already applicable of many items including vehicles under Sales Tax Act. The budget proposals of the Sindh Chamber of Agriculture (SCA) Hyderabad to FBR Chairman included rationalisation of tax structure and abolishment of levy of sales tax on tractors to support agriculture sector. Sales tax on tractors, pesticides likely When contacted, sources in the FBR revealed that the proposals are under consideration of the FBR during ongoing budget preparation exercise to facilitate poor farmers of the country. The chamber stated that the approved tariff plan to be implemented in budget (2025-26) covers elimination of Additional Customs Duty (ACD); phasing out of Regulatory Duty (RD); gradual elimination of the Fifth Schedule of the Customs Act and restructuring of the customs tariff. This must cover most essential item i.e. tractor which is not a luxury item like vehicle. Nabi Bux Sathio, Senior Vice President, Sindh Chamber of Agriculture Hyderabad stated: 'We, as representatives of the farming and agricultural community in Sindh, feel compelled to shed light on the significant challenges and hardships faced by our fellow farmers and agriculturists in recent times'. The chamber stated that the agricultural sector plays a pivotal role in Pakistan's economy, contributing 24% to the GDP and employing 37.4% of the workforce. However, the sector is currently grappling with a myriad of complex issues. These include the lack of investment and support, the adverse effects of climate change, and the dwindling availability of water, exacerbating the challenges faced by farmers and agriculturists. Moreover, farmers have been severely impacted by the inability to secure fair prices for their produce. The government's announcement of support prices for wheat and cotton has not translated into actual purchases at the stipulated rates, leaving farmers with no choice but to sell their crops at significantly lower prices. The situation is further compounded by the low prices offered for rice and the potential delay in the sugar cane crushing season, which has added to the woes of the farming community. He urged the FBR to reduce the existing sales tax rate on locally manufactured and imported tractors from 14% to 5% enabling the farmers to purchase tractors, and also reduce the custom duty on imported tractors from 15% to 5% and also for re-conditional tractors. Copyright Business Recorder, 2025
Express Tribune
12-03-2025
- Business
- Express Tribune
Declining crop yields raise alarm
By the end of the season on May 30, there could be a shortfall of at least 3 MMTs, warned veteran agriculturalist Nabi Bux Sathio. photo: file Listen to article Progressive farmers have raised serious concerns that overall crop yields have been falling due to climate change, a lack of modern seed varieties, diseases, virus attacks, water shortages, excessive use of ineffective pesticides, and, above all, growers' disinterest due to low profit margins, while pesticide companies continue to multiply each year. They said there are approximately 680 pesticide companies, half of which import 130,000 metric tonnes of pesticides worth about $360 million (around Rs10 billion), while the rest are engaged in formulation and marketing. Scores of new pesticides are introduced each year. In the country, there are four major crops — wheat, sugarcane, cotton, and paddy/rice — and no more than 50 other consumable items, including vegetables and fruits. However, despite around 680 companies supplying a good variety of pesticide products, their efficacy and quality remain inadequate to protect standing crops from viral attacks and insects. There must be a ban on the registration of new pesticide companies, along with strict monitoring and vigilance of pesticide quality. Farmers stressed that the government must focus on research and development (R&D) of new seed varieties to enhance crop yields on a war footing, provide compensation for growers' losses, and take action against fake or substandard pesticides, seeds, and fertilisers to ensure food security. Veteran agriculturalist Nabi Bux Sathio noted that as soon as the number of pesticide companies started rising, crop yields began to decline. He said that 15-20 years ago, the minimum cotton yield per acre was around 30-35 maunds (one maund equals 40 kilograms), with maximum yields reaching 55-60 maunds. Currently, maximum yields are around 15 maunds, with minimum yields ranging from 6 to 10 maunds. The government set a target of 13 million bales of cotton for the 2024-2025 season, but only about 5.5 million bales have been procured — 2.8 million bales from Sindh and 2.7 million bales from Punjab. The country's cotton requirement is around 11 million bales. The government has already imported 3 million bales, with at least 2 million more to be imported soon. Regarding wheat yields, he said that according to government calculations, wheat production may drop by 25-30% from the target of 30 million metric tonnes (MMTs), while national consumption stands at around 29 MMTs. By the end of the season on May 30, there could be a shortfall of at least 3 MMTs. Notably, wheat production areas also shrank as growers planted less wheat than last year due to unprofitable rates. Last year, farmers were forced to sell wheat at Rs2,200 to Rs2,500 per maund in Punjab's open market. However, wheat is now being sold at Rs2,900 per maund. There is no concept of a buffer stock in the country to manage emergencies such as torrential rains, floods, or other natural calamities. Progressive farmer Dr Shakeel Palh from Tando Allahyar said growers are generally advised to adopt modern techniques to boost crop yields, yet they continue to face an influx of substandard seeds, fertilisers, and pesticides. The government neither invests in R&D nor monitors the quality of agricultural inputs. Farmers have repeatedly raised concerns with district deputy commissioners and officials of the Sindh Agriculture Department, but to little avail. He stressed that the government must take strict action against various mafias in local markets that exploit growers through fraudulent seed, pesticide, and fertiliser sales. Unless authorities intervene and provide farmers with high-quality inputs, including better seed varieties, effective pesticides, and useful fertilisers, improving falling crop yields will remain a tall order. Poor yields could threaten food security, as the country's population continues to rise while agricultural output declines.
Express Tribune
04-02-2025
- Business
- Express Tribune
Farmers demand lower urea prices
Listen to article KARACHI: Small and progressive growers have called for reducing fertiliser rates to boost crop yields and agricultural growth. Practices of hereditary agriculture have prevailed across the country for centuries, but crop breeding remains a complex challenge. Farmers urged the government to play its role in reducing prices and regulating them. They said that urea and DAP prices should not exceed Rs2,000 and Rs5,000-Rs6,000 per 50 kg bag, respectively. In Pakistan, urea costs Rs4,400 per 50 kg bag, while Indian growers get the same quantity for Rs300. If Rs4 (due to the depreciation of the Pakistani rupee) is multiplied by 300, it equals Rs1,200. Pakistani growers should be able to purchase urea at Rs1,200 per bag, yet it is being sold for at least Rs4,400. Similarly, DAP is priced at Rs1,200 per 50 kg bag in India and should cost Rs4,800 in Pakistan, but it is currently being sold for Rs12,500 per 50 kg bag. This makes DAP over 300% more expensive in Pakistan than in India. Pakistani growers face lower yields compared to their Indian counterparts while paying higher input costs and failing to secure fair output prices. Farmers are falling behind each year due to exploitation in both input and output costs. Input costs include fertilisers, seeds, pesticides, and other essentials. There is no justification for the prices of Rs4,400 and Rs12,500 per bag for urea and DAP, respectively, in Pakistan. Urea is essential for crop growth. If growers do not apply urea and DAP, crop yields will decrease by 80% and 30-40%, respectively. When it comes to Pakistan's fertiliser industry, Fauji Fertiliser Company Limited and Engro Fertilisers Limited produce 90% of the country's urea, while Fatima Fertiliser Company Limited, Pak-Arab Fertiliser Limited (PAFL), and others fulfil the remaining 10% of local demand. Around 70% of DAP is imported, while 30% is produced locally by Fauji Fertiliser Company Limited. DAP must be imported as per local demand for each of the two crop seasons while safeguarding precious foreign exchange reserves. Sustainable Agriculture Expert and Sindh Chamber of Agriculture (SCA) Senior Vice President Nabi Bux Sathio stated that, for the first time starting from October 15, Fauji Fertiliser Company Limited (FFCL) has set up outlets in Sindh's districts, and Engro Fertilisers Limited has launched an online application where growers can register and purchase fertilisers at company-set rates. The real test for both companies will be during the Kharif season when fertiliser demand is high, unlike the lower demand in the Rabi season. In terms of exports and industries, the Kharif season, which runs from March 15 to October 14, includes crops such as cotton, paddy, oilseed, maize, onion, and chilies. The Rabi season, from October 15 to March 14, includes crops such as wheat, sugarcane, and oilseed crops. Offering such services is a positive initiative. If companies provide fertilisers on a four-month loan at the central bank's interest rate, it would be a significant support for the agriculture sector. Once the crops are harvested after four months, growers will be able to make payments. Growers already spend money on land preparation, labour costs, diesel for farm tractors, and seed purchases. They then require multiple fertiliser applications to achieve high yields, but they often lack sufficient funds. Due to financial constraints, farmers are frequently overcharged by fertiliser dealers for delayed payments, as they typically pay for fertilisers only after selling their crops. Another progressive grower, Jawaid Junejo, along with several small farmers, also demanded fair fertiliser prices. On top of that, despite gas supply cuts to industrial and domestic consumers, fertiliser companies receive full gas supplies at subsidised rates. Instead of lowering prices, they set high rates on their own.
