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Govt to set up agriculture price stabilisation fund

ISLAMABAD: The government is considering to set up a 'price stabilisation fund' to ensure reasonable return to the farmers of their produce.

It is in line with the commitment of Chief Executive Gen. Pervez Musharraf to protect the interests of the farming community, the newly-inducted member of the National Security Council (NSC), M. Shafi Niaz, told APP here on Monday.

Shafi Niaz, a renowned agro economist of international fame, said by introducing the Price Stabilisation Fund, the government would be able to intervene in the market system at a time of crisis, so that the farmers do not suffer losses and are able to get at least the amount, which they spend on in producing the crop.

The main objective will be to give proper return to the hard labour of the farmers, he added.

Shafi said that if the government decides to continue the support price policy which, in his opinion required continuation, then there would be a need to take appropriate steps to ensuring its implementation, in order to achieve the desired results.

The implementation agencies in public or private sector, should also be fully mobilised to protect the interests of the farmers, he added.

He pointed out that the price structure of various commodities in Western countries is determined according to supply and demand position in the open market, adding, however, this policy is not suitable for our country.

The developed countries, he said, protect their farmers' interests, by providing them heavy subsidy, in one way or the other, enabling them to get due return to their hard work.

Whereas in Pakistan, he said, the farming community had been receiving set-back time and again, in getting reasonable prices of their produce.

In this connection, Shafi referred to the recent crisis, faced by the farmers in selling cotton, onion and rice produce.

Sometime, they do not even receive the support price of their produce, which is announced by the government, he added.

Shafi said that the economy of the country cannot improve and sustain itself, unless the first priority must go to the development of agriculture sector.

He believed that if the agriculture sector grows in the country, the per capita income of the farmers will definitely improve and more employments will be generated.

This, he said will also help reduce trade deficit and the existing alarming poverty level.

The development of the agriculture sector is also imperative to provide raw material to the industrial sector.

The government, Shafi asserted must go for repaid growth of agriculture sector to reduce dependence on imports, adding the country should not be influenced by the 'Food politics' being carried out by the exploiting countries.

The previous governments, Shafi said, under the influence of international organisations eliminated subsidy on agriculture inputs, whereas the neighbouring India is still providing the same to the tune of Rs 99 billion annually.

Shafi said that the present government is committed to the agriculture development in the country, along with the energy policy.

He was of the view, that the country can become prosperous and strong, by providing all possible help to the farming community and improving their living conditions.

The Chief Executive, he added, attaches high priority to the interests of the farmers, and desired that all the policies should be framed accordingly. APP