Agriculture production cost reduces by 5-10%: API

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ISLAMABAD, Jan 12 (APP): Cost of agriculture production has
reduced by 5-10 percent due to various incentive packages introduced
by the government.
“If these measures continue next year, the agricultural
produces including wheat, rice, sugar and other products would be
able to compete in international markets,” Chief Economist in the
Agriculture Policy Institute (API), Sohail Muhammad Khan said.
Talking to APP here on Thursday, he said that decreasing
production cost of local agri produces would help to create a
reasonable space and capture the international markets by competing
in these products.
He said government was taking appropriate measures to further
bring down the cost of agriculture production in order to compete in
international markets and enhance the exports.
He said that government has announced different measures for
the promotion and development of the agriculture sector of the
country including kissan package, subsidy on fertilizers,
installation of solar tubewells as well as reduction in electric
tariff for farmers.
Besides, he said the government had also abolished sales tax
on pesticides, adding that subsidy in fertilizers had received
positive response from the growers and fertilizers intake had
witnessed significant increase during the season.
Increasing intake of fertilizers would bring about positive
impact on overall agriculture production and reduce the negative
effects by increasing the per acre crop productivity, he remarked.
Sohail Muhammad Khan said that despite the long dry spell in
the country, wheat output would not be affected to great extent as
rain-fed areas only contribute 10 percent in total output.
On the other hand, he said targeted wheat sowing in irrigated
areas were achieved as compared to last year and if temperature
remain normal during the month of March health production of wheat
was expected.