May 24, 2011

Farming cost higher in Pak than in India


MONITORING REPORT LAHORE: Pakistani farmers are paying a staggering amount of Rs 345 billion more than that of Indian growers in terms of production cost of the crops, reveals a recent comparative study of production cost between Pakistan and India.
“Spiraling cost of production in Pakistan is not only harming agriculture sector beyond redemption but also contributing to poverty when directly reflected in inflation, which has assumed run-away proportion,” maintains the survey recently conducted by AgriForum Pakistan.

It said that a urea bag, which costs Rs494 (in Pakistani), is being sold at Rs1,250 per bag in Pakistan. Farmers here use around 130 million bags, and pay around Rs99 billion under this head alone when compared to their Indian farmers.
As far as DAP is concerned, it costs Rs1,055 per bag in India, when converted in Pak-rupee. In Pakistan, where farmers use 37 million bags every year, it costs Rs4,095 per bag thus costing Pakistani farmers an additional amount of Rs92 billion. Other kinds of fertilizers, which are consumed around 24 million bags, on average cost Rs375 more in Pakistan, and the farmers pay another additional amount of Rs7.66 billion.
On average, a tractor costs Rs80,000 extra in Pakistan, where around 70,000 tractors are sold every year. The farmers end up paying an additional amount of around Rs5.6 billion, the study says.

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