Agriculture production cost reduces by 5-10%: API

Agriculture production cost reduces by 5-10%: API

ISLAMABAD: (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.