Better Pakistan | Agricultural Reforms (I)
The Pakistan Muslim League is proud of presenting the poor friendly policies. Right after taking oath as PM of Pakistan , in order to fulfill the manifesto of PMLN, on April 03, 1997 the Agriculture policy was announced It must be noted that this policy played a vital role in paving the way for self reliance in agriculture sector. Below is the news report of this policy that was published in local newspapers the next day. Here as a reference THE NATION dated Friday, April 04,1997 is quoted. This policy is not available on the internet and this is the first time we are reproducing it here. The major points are also summarized.
In some places the text was not visible in the newspaper so * sign is used.
Summary
- Vows to make Pakistan food exporting country in 2 years:
- Support prices of wheat, rice, sunflower seeds up:
- GST on cotton seeds goes:
- Electricity rates for tube wells, interest dues on small loans cut by 50pc:
- Land distribution to haris from 20th.
- Downgrading of duty at second-hand harvesters from 35-10 percent.
- Locally manufactured tractors had recorded a decline of Rs 30 thousand to Rs 50 thousand while the price of imported tractors had been down from Rs 40 thousand to Rs 65 thousand
- Regulatory duty on weedicide had already been withdrawn
- Reduction in the rate of duty on re-conditioned harvesters from 35 percent to 10 percent.
- A substantial amount of Rs 15 billion, aid would be provided as agriculture credit for the farming community
- Enhanced the maximum agriculture credit to Rs 1 Million
- 25000 cows and buffaloes and 50,000 sheep and goats would be provided on the personal security for enhancing livestock
- Two agricultural experts, he said, would be given an award of fifty acres of land every year who would make outstanding contribution to research work
- Year 1997-98 was being declared as 'wheat year
Speech:
ISLAMABAD- Eager to make the agri-sector yield increased production, Prime Minister Nawaz Sharif announced a package for farmers at a convention on Thursday doling out unprecedented concessions aimed at improving the output.
The package carries a hike in support price of wheat from Rs 55 per 40 kg, rice by Rs 20, canola by Rs 50 and sunflower by Rs 65 besides slash in electricity rate by 50 percent, exemption from 50 percent interest on loans not more than Rs 300,000, abolition of general sales tax on certified seed of cotton and downgrading of duty at second-hand harvesters from 35-10 percent.
"You follow the meter system and the government will cut the electricity rate by half," the prime minister announced in thunderous thumping of the desks and applause. "Don't steal electricity and pay your bills honestly to make this offer successful," he asked the farmers. The government will review the scheme after three months to gauge its results and the electricity supply of those consumers will be disconnected who did not deposit their bills.
Announcing the weaving off of 50 percent interest rate in loans not more than Rs 300,000, the Prime Minister said that the facility would be provided only to those farmers who would repay their outstanding debts in six months.
"This is first part of the package and i will announce more measures in a few days time," Sharif said disclosing that 'Green Tractor' and 'Green Tube Well' scheme will also be launched soon. Through these schemes the farmers will be provided soft loans to buy tractors and install tube wells. "these schemes will bring Green revolution which our country needs," he said.
Agencies add: The Prime Minister provided opportunity to several farmers who wished to present their suggestion for improvement of production in the agriculture sector. They also appreciated the Prime Minister for holding convention to address the problems facing the vital agriculture sector.
Different committees were constituted at the convention on different segments of the agriculture sector including wheat, sugarcane cotton, vegetable, credit, plant machinery, edible oil, seed, water resources, pulses, fisheries, poultry, fertilizers, maize etc which would prepare their recommendations for further improvement.
Nawaz Sharif informed the convention that prices of locally manufactured tractors had recorded a decline of Rs 30 thousand to rs 50 thousand while the price of imported tractors had been down from Rs 40 thousand to Rs 65 thousand as a result of reduction in general sales tax on harvesters, tractors and other agricultural machinery and plants.
He assured them that rate of duty on locally manufactured tractors and agricultural machinery would further be reduced and credit facility would be balanced to ensure easy availability of tractors and agricultural machinery to farmers.
These measures, he hoped, would provide an impetus to the local industry of tractors and foreign exchange spent on their import would be saved.Regulatory duty on weedicide had already been withdrawn, he said adding that proper arrangements were bring made to ensure the supply of standard ******** of oil seed crops on reasonable prices for the ext crop. The Prime Minister also announced reduction in the rate of duty on re-conditioned harvesters from 35 percent to 10 percent. Substantial amount of Rs 15 billion, aid would be provided as agriculture credit for the farming community in the next fiscal year. Agriculture credit from major defaulters would be recovered through strict measures and another amount of Rs 3 Billion would be given as agriculture credit to the small and medium farmers in the next financial year. Stringent action would be taken against big guns who had misused the ****** facility depriving the small farmers of their rights in this regard, he continued.
He enhanced the maximum agriculture credit to Rs 1 Million so that he stated, this facility could reach the maximum number of farmers.
To ensure credit facility for small farmers and landless tenants, he said the financial institutions would be established on the patron of Gramin bank.
The Prime Minister said that bricking of 8000 water courses would be ****** instead of 4000 per annum to stop water wastage. Likewise, desilting program would be started in areas located in the tail end of deprived of water to **** the difficulties of the farming community In case of any mistake in this regard he said irrigation department would be held responsible.
The uneven portion of canals, **** water logging and salinity will be treated under national water ***** program.
The direction of flood water would be managed and diverted for its use in crops. Under this plan, he observed, areas located in Baluchistan Punjab, NWFP and northern areas along Kohe Suleman would be benefited. In barani (Arid) areas, small dams would be constructed and plans pertaining to **** and sprinkler would be initiated. Elaborating various measures against ****** in fertilizer, pesticides etc, PM said there was no at the moment effective law which would check the production of sub standard pesticides, fertilizer and their adulteration.
An effective law would soon be enacted to check the adulteration in fertilizers and pesticides under which he said, those manufacturers, importers, wholesalers and retailers involved in adulteration of fertilizer and pesticides would be awarded exemplary punishment and penalized.
**** The promotion of livestock industry he said a new system was being introduced through Agricultural Development Bank and poverty eradication fund to provide protection to the landless people working on the farms. Under the system, the PM said 25000 cows and buffaloes and 50,000 sheep and goats would be provided on the personal security. Besides, better **** would be made available in the rural areas to obtain better race of livestock.
Livestock research institutions working under provincial governments, he said, whose performance, at present are at the lowest ebb, would have to prove it, otherwise these would be disposed of to private sector. He also expressed his dis-satisfaction over the agriculture departments.
The Prime Minister further said that every year a *** of Rs 50 crore would be established through research *** and would be utilized for objective research,
The representation of the farmers in research center was extremely poor, this way he added their effective representation in these institutions would be ensured.
He also pointed out lack of co-ordination among efforts for research work, results and benefits. For this purpose he added, an effective system would be furnished in collaboration with the private sector so that the funds collected and allocated could be rightly utilized and the farmers could benefit from research work. Two agricultural experts, he said, would be given an award of fifty acres of land every year who would make outstanding contribution to research work.
Under the package, the Prime Minister said, media like radio and television would be utilized in an effective manner to keep the farming community abreast with the latest information and technology of this sector.
Special agricultural program would be telecast on television daily for the farmers which would present detailed information regarding increase per acre yield and latest agricultural research. Nawaz Sharif pointed out that Rs 20 billion were being spent on the import of wheat which was expected to increase next year. To cope with this precarious situation, the Prime Minister said that year 1997-98 was being declared as 'wheat year' and an effective campaign 'grow wheat effectively' was being launched to make the country self-sufficient in this regard. Under this campaign he said, provision of certified standard seeds, supply of weedicide and pesticides, effective supply of water and increase per acre yield would be ensured besides implementing the program of the PARC in collaboration with the provincial governments for growing more and more crops.Besides, the Prime Minister said a special program would be prepared to increase the production of oil seeds Efforts would be made to bring more land under cultivation besides ensuring inter-cropping so tat the crops of sunflower and canola could be cultivated instead of conventional oil seeds., Private sector would be motivated under this program for the import of the seeds to increase the production of sunflower and canola. Five Lakh acres of land would be prepared for cultivation in such a way that second wheat crop could be cultivated in autumn, the Prime Minister said that distribution of sixteen acres land in Katcha to landless Haris would be restarted in Sindh which had been earlier initiated during his previous tenure.
As a first step, the Prime Minister said the distribution of land would start on April 20 from Larkana and about 1,38,000 acres of land would be distributed among the landless Haris of Sindh within six months by October 1997. They would also be provided easy credit for getting seeds, tube wells and fertilizer for the cultivation of land.
The process of distribution government lands among the landless farmers would also commence in the rest of the three provinces. In Punjab, he said twelve and half acres of Katcha located on the coasts of Cholistan and rivers would be distributed among each family of landless farmers. Farmers holding twelve acres of land would be given easy credits provided they did not have an outstanding loan against the,. If they kept on repaying the loans for three years continuously their credit ceiling would be increased, he added, District agricultural committees would be setup in all the provinces and these would be responsible for monitoring and coordinating the agricultural activities, he said hoping that be shouldering responsibilities in an effective way, these committees would ensure an increase in agricultural productivity.
The list of the progressive farmers, benefiting from the latest agricultural research would be presented to the PM and he would meet them from time to time and would benefit from their experiences for raising the agricultural productivity.
Since there were bright chances of increase in tea production in the country special incentives and credits would be extended for increasing tea production.
Special campaign would be launched for the promotion of inland fisheries. Livestock farmers would be imparted special training and given concessions for obtaining standard races of cattle.
Forestation and protection to environment would be accorded priority and tree plantation program would be expanded on the road sides, agricultural fields, underground water courses and water courses
Special loans and incentives would be given to increase the production of vegetables, pulses and spices. maximum limit of owning land by the registered agricultural companies engaged in increasing the production of agricultural inputs and products on commercial basis would not be fixed.
Responding to the proposals of the farmers, the Prime Minister announced waiving of 52 percent of the interest accrued on the loans up to Rs 3 lakh which had not been paid so far and secured before 1992.
This concession could be availed by those farmers who would repay their credit within six months he added further saing that it would immensely benefit the small farmers,
In a quick response to another proposal given by a poor farmer attending the National Kissan Convention the Prime Minister announced that the electricity for tube wells would be charged at the half of rates as compared to the rate for industrial sector. However the system of meter would have to be observed by them, he added, Pointing out excessive pilferage and wastage of electricity in WAPDA, the Prime Minister said that those big guns involved in this malpractice would not be spared.
He urged the farming community to pay the electricity bills with honesty as this would also help bring the WAPDA out of financial crisis The accountability of WAPDA he said was also necessary.
The Prime Minister said that he wanted to float another scheme of green tractors and tube wells but it was not possible at the moment for paucity of funds. Its possibly would again be looked into after six months, he added.
Shorting them to fulfill their tax obligations, Nawaz Sharif said that merely by paying the due taxes, green revoluton could be brought,.
Referring to the financial problems facing the country, Nawaz Sharif said that there was a great pressure on his government but he would not succumb to it and would not take dictation from the donor agencies.
The Prime Minister said we would rely on our own resources and would not depend upon others.
The Prime Minister said wheat worth Rs 25 b was being imported every year despite having best canal and irrigation system of the world, weather endowments and best manpower,
In spite of being an agricultural country, he said oil seeds worth rupees thirty billion and pulses of rs 3 billion were being imported every year.
Pakistan which had an autarky in sugar since long, was not forced to import sugar and likewise cotton was to be imported despite the fact that this crop was matter of great honor for this country,
Instead of growing forest on our land, an amount of Rs 3 billion was being spent on the import of paper etc. Foreign exchange at least worth Rs 90 billion was being drained out per annum in this way he added.
He regretted that credit issues in the names of small farmers was taken by the big fish. Farmer was unable to get in adulterated fertilizers, seeds and pesticides on time. The agricultural research institutes he added also failed in giving any result oriented performance.
All what has done till now, which resulted in increase in the prices of electricity diesel fertilizer seeds and fertilizers which also led to increase the cost of agricultural production proportionally more than its sale price, thus causing great distress, problems and difficulties to the farming class,
He underscored the need of taking drastic measures to rid the country this situation. The prime Minister further said that he as now presenting certain incentives and concessions under the agricultural package while rest of the portions of the package would be announced later.
In the next part of this subject we will present the pleasant effects of this policy on agricultural economy. The various other works in the field of agriculture and live stock will also be published in the next episode of this blog.
**** The promotion of livestock industry he said a new system was being introduced through Agricultural Development Bank and poverty eradication fund to provide protection to the landless people working on the farms. Under the system, the PM said 25000 cows and buffaloes and 50,000 sheep and goats would be provided on the personal security. Besides, better **** would be made available in the rural areas to obtain better race of livestock.
The Prime Minister said that he wanted to float another scheme of green tractors and tube wells but it was not possible at the moment for paucity of funds. Its possibly would again be looked into after six months, he added.
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