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Agriculture production coast reduces by 5-10 percent: API

Agriculture production coast reduces by 5-10 percent: API

ISLAMABAD: 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 products 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.

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 tube wells 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 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.