The agriculture sector is the largest in Pakistan, that’s why Govt. always gives different kinds of subsidies for the welfare of their farmers and the national economy. As agriculture supports di-rectly to the national economy, Govt. have to improve the agri-sector developments and gives more favorable subsidies to farmers that will lead to the bumper production and management of price rate all over the country.
Author: Muhammad Umer Shahzad
Proposed by: Muhammad Yaseen. Department of Agriculture Extension, College of Agriculture, UOS, Sargodha
A subsidy is technical or financial support which is given by Govt. A federal or provincial level to Agriculture sectors to enhance the production and consumption value in markets and to con-trol the price rates to remove inflation rate from society. Subsidies are maybe directly or indirect-ly given to farmers and Agri sectors which is in total favor of Govt. As well as farmers because the level of income and production outcome increases for both and Govt. Export these products at national and international markets with the respective goods rates.
Some subsidies are for producers to support them to increase their production value and some subsidies are for consumers to avail themselves of the basic agri necessities from markets on Govt. Subsidy prices. Subsidies are helpful to low-income farmers to increase their outcome ratio.
Some subsidies are given to enhance the production rates of crops called production subsidies and some are given to enhance their consumption rates of goods and to lower down the price ra-tio in marketing called consumption subsidies.
When subsidies are implemented properly, it would increase the bumper production rate of agri-goods, and then these goods are available in enough quantity to be exported at the international level. By exports of these quantities, it would be a source to increase the prosperity of our coun-try in world nation because the name of a country is always written with the name of goods.
By giving subsidies to agrisectors, it provides opportunities and jobs in Agriculture sections to regulate and management of subsidies in a proper way in Agriculture departments. By this, In-dustries and other associated firms provide wages and financial support to their workers. This would allow farmers in receiving the benefit to enjoy a good quality standard of living as they can easily avail themselves.
When Govt. Give subsidies with no taxes it will enhance the interest rate of farmers to avail the subsidies. When these no-tax subsidies are given to the low sector it would help to enhance their production value and to control the inflation rate in markets.
No doubt, subsidies remove extra burdens like tax rates and it is in total favor of people for whom it is given to promote their local goods. Subsidies create huge effects in agronomic sectors and industries. Govt. Gives subsidies to facilitate the Agriculture sectors to enhance their out-come at the bumper rate and help the farmers to sell their products in their respective markets at market trends on good rates.
When Govt. Give subsidies by digital means like banking ways, Biometric ways, to farmers on seeds, fertilizers, and vehicles, etc then it helps to enhance farmer’s interest in digital banking network which increases the farmer’s level of interest towards digital marketing. It is given di-rectly by Govt. As in aid form or discount form to manage the availability of the basic essential items to the in the market at affordable prices for people.
It is a support that is directly related to agribusinesses, Agri farms, and agricultural organizations to enhance their outcome rate and management of Agriculture products in markets properly. Ag-ricultural subsidy schemes are given to farmers and agri-sectors to stabilize stabilizing the com-modities prices rates and empower the Agriculture sections to increase their role in the national economy. Agricultural subsidies are direct support low-income farmers to increase their produc-tion rate and then they easily take part in marketing their selves.
Every kind of subsidy has its terms & conditions. Like, to avail subsidy every farmer has to reg-ister in agriculture departments. Every time Govt. Gives new conditions like land, instruments, etc for subsidy.
Subsidies have a direct impact on lower sectors because when Govt. gives subsidies to a specific sector, this sector’s industries and firms give special allowances to their workers to increase the productivity rate of agri- goods. This results in overall increases of supply and demands those of goods & services, which as a result maintain the price rate of those commodities at the lower level which is in favor of Govt to control the level of inflation in the country.
With the provision of subsidies in a proper way, Govt. Can store a stable supply of affordable food as a backup that Govt. Attained from farmers on a specific rate that is in favor of farmers. With the help of subsidies Govt. Can create jobs in the Agri sectors and maintain the rural econ-omy at a beneficial level.
Govt. Should take the initiative for the awareness about subsidies by using different means of communication like media, press, internet, a program about Agriculture, seminars, etc to enhance the interest of people about subsidies to encourage them to avail Govt. Subsidies.
Our Govt. has to give following types of subsidies on season basis which is in favor of both Govt. and farmers in future. Water subsidy, Irrigation subsidy, Seed’s subsidy, Power sector sub-sidy, Credit subsidy, Fertilizer subsidy, Tractor subsidy, Equipment subsidy, etc.
Our Govt. Have to give subsidy on fertilizers especially on potash and phosphorus fertilizers so that farmers can solve their fertilizers rate in their lands. It is helpful to attain a high yield pro-duction rate to the farmers that directly benefit towards Govt. Subsidy on modern kinds of ferti-lizers creates ere positive effects on farmer’s production rate.
Subsidy on Fertilizers as per bag is more beneficial to farmers as they can easily avail of this subsidy. The cottonseed subsidy, the subsidy on Canola, Sunflower, and Sesame seed, on oilseed crops, and also on other crops is a source to increase the productivity rate of these crops which is useful to maintain the production and consumption level as well as price ratio in the country.
Subsidies on Agriculture farm machinery including tractors and Agri-instruments are more bene-ficial to farmers and the agriculture community. Because these instruments are used in farms and fields on a compulsory basis if Govt. Subsidize this section of Agriculture will more beneficial to farmers because it saves more labor and time for work.
To maintain and regulate the subsidy system in a proper way there must be a specific department needed as like other sectors so that this institute monitors all the activities on regular basis and stay in contact with the farmer’s community. There must be a separate sector in the Agriculture department for subsidy program management and to solve all kinds of problems on an urgent basis.
As Govt. give Kisan Kaushal-Pakistan Kaushal scheme, a subsidy scheme for DAP & NP, a sub-sidy scheme for sunflower and for cotton, laser land leveler scheme, green tractor scheme, a scratch card scheme in recent years which supports our farmers widely. And now the Kisan card scheme is the new initiative of Govt. of Pakistan.
We have to follow and must implement the proper system for the subsidies to attain full benefit as proper outcomes. We must have to improve the management and regulations of subsidy sys-tem by our Agriculture departments with modern ways.
Unfortunately, there is no proper system to implement subsidies properly in Pakistan there is a big reason behind it that subsidies are not just for farmers’ different kinds of sectors, and industries also enjoying the subsidies because of lack of proper system and still implementation on an old and poor system. These sectors and industries give special allowances to their workers to increase their production level so that they attain more kinds of subsidies and take part in the strengthening of the domestic as well as national Economy.
Because of these major issues our subsidy programs are always gone backward and gives nega-tive effect and the minor ratio of farmers are benefited. Lack of technological innovation, admin-istrative issues, Lack of awareness, lack of proper education, lack of coordination, Inadequate infrastructure, Political issues at the upper level, etc. Due to loan installments of IMF, Govt. end-ed some kind of subsidies because of IMF strict terms and conditions.
As agriculture is the backbone of Pakistan’s economy, Govt. should take initiatives to enhance crop production by improving the availability of good quality agri-inputs like seeds, fertilizers, machinery by giving subsidies to produce good and crop in bumper rate.
Govt. must have to enhance the subsidies rate to level up the production and consumption rate in Agri and food sectors. It has the effect of increasing the revenues of producers as well as Govt. Govt. Policies have deleterious effects on the domestic economy & trade. At the state level Govt. should promote local agri-products & their enough production rate.