Inflation and agricultural crises

Amid the rampant inflation, where everybody is facing the survival challenges, the gravity of these challenges has increased manifold for the farmers. In mainstream media, public offices, and those at the helms of affairs, this community has been left abandoned and alienated. No one is raising his voice about the agricultural crises being confronted by the farmers.

Pakistan is an agrarian society having a significant percentage of masses attached directly or indirectly to the agriculture sector. This sector contributes around 20% to the overall GDP of the country and provides employment to around 42% of the total labor force of the country, and 72% of the rural population. Although the overall contribution of this sector to the economy may not be as significant as the contribution of other sectors, when it comes to survival and fulfillment of the basic needs of the masses, the agriculture sector holds a crucial position. It may not improve the economic situation of our country in a significant way, but a well-established and organized agriculture sector, able enough to produce surplus food, will not let our people die of hunger.

If 20% of the economy is distributed among 40% of the population, it is obvious that their relative economic position will be lower than the remaining 60% of the population which is having a share in the remaining 80% of the economy. Speaking in relative terms, farmers and people associated with agriculture are already relatively poor than the people associated with sectors of the economy other than agriculture.

A recent hike in inflation has turned the situation of already poor farmers from bad to worst. Although Pakistan has inherited the second-best irrigation system in the world, a huge area of land is irrigated through tube wells and other artificial sources of irrigation. The cultivation of Paddy in Punjab is a few days ahead, and it is a cash crop in Punjab. An overnight hike in petroleum and electricity prices has urged the farmers to ponder upon their decision to cultivate paddy as it consumes a huge amount of water. The same goes for sugarcane and other water-consuming crops. Deciding not to cultivate will definitely have a negative impact on the already relatively poor farmers.

More alarming than this are the fertilizer crises that the farmers are suffering. Both Urea and DAP (Di-Ammonium Phosphate) are the very basic fertilizers for the growth and nourishment of plants. Unfortunately, there has been a severe shortage of urea fertilizer since the ‘Rabi’ season, and, despite the intervention by the government to better the plight, the situation seems to get worst for the upcoming ‘Kharif’ Season. Unfortunately, farmers are not getting a sufficient amount of Urea to fulfill the nutrient requirements of their crops. Another dark side is the availability of urea in black markets which is visible exploitation of the poor farmers and a huge question mark on the performance of the intervening authorities. Hence, the results in the form of further deterioration of the already dangling financial position of the farmers and their exploitation are inevitable.
The situation is quite opposite in the case of DAP fertilizer. The rate of this fertilizer is around 10,000 to 11,000 per 50kgs bag. It is out of the reach of a normal farmer and using this is considered either a luxury or madness by the farmers. Although its alternatives might be available, they might be costly too. Not using this fertilizer will deprive the land and the crop of the necessary nutrients which will have a negative impact on the agricultural yield and, obviously, the already impoverished situation of the farmers.

Government fixes the prices of agricultural output, especially wheat and rice, every year. However, no attention is paid to fixing the prices of inputs. If the price of wheat can be fixed at Rs. 2200 per 40kgs for the season, why not it can be fixed for the fertilizers, seeds, and other agricultural inputs? Moreover, strong checks should be imposed on the hoarders of agricultural produce and middlemen who create artificial inflation and do not let the prosperity pass on to the farmers and other associated people. In addition to this, the government should actively intervene to fulfill the demands of Urea fertilizers at approved rates for the upcoming season, and strive for pulling down the sky-touching price of DAP. Again giving subsidies will put us into another dilemma of meeting IMF’s demands to cut down the subsidies. Largely, it is an imported fertilizer for which a local alternative should be prepared. The government should plan such a way out so that its brunt does not pass to ordinary farmers. No matter how advanced the whole nation becomes, they cannot escape eating ‘Roti’ come what may, and in a time of crisis, these ‘Roti’ producers should not be left alone. In the end, it is their productivity and prosperity which contributes significantly to the prosperity of the whole masses.