Sindh suspends subsidy on brand new tractors

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KARACHI: The Sindh government has ceased provision of subsidy on brand new tractors to the poor growers and has hence caused further trouble to the already suffering agriculture sector of the province, it is reliably learnt.
The Agriculture Department of the Sindh government had launched a scheme of granting subsidy on tractors and disbursed at least 5,000 tractors to growers in the initial phase.
However, the facility has recently been withdrawn as the provincial government is faced with stern financial crisis, well-placed sources told Pakistan Today.
According to the plan, the Sindh government was supposed to provide a subsidy of Rs 200,000 and Rs 300,000 on a tractor costing Rs 500,000 and Rs 600,000 respectively.
A grower was required to submit an application form along with a bank draft of Rs 5,000 to the agricultural department. This was followed by balloting held at the Chief Minister’s House. In addition, successful growers had to select a model of the tractor within 30 days in accordance with the guidelines issued by the Ministry of Food and Agriculture (Minfa), the sources said.
The growers seemed reluctant to go through the lengthy process formed by the Sindh government and hence not many had applied for the scheme. This lack of interest by growers had forced the agriculture department to twice extend the last date for submission of applications. A little more than 3,000 tractors have so far been provided to the growers.
Sources claimed that only the rich and influential landlords were provided with subsidised tractors with the help of district officials and recommendations by local leaders of the ruling party.
Sources stated that the poor growers were already suffering from financial constraints following damage caused by the recent floods. The standing crops on thousands of acres of land were destroyed, while prices of urea fertilisers had climbed. Crop production had been hampered due to an acute shortage of irrigation water and a soaring cost of electricity, diesel etc.
Sources alleged the rich influential growers of selling these subsidised tractors to the poor growers on easy installments with a markup of at least 200 percent.
They added that the influential landlords had always deprived growers from such subsidies offered by the government and the same had happened this time.
Sources at the Sindh Abadgar Board told Pakistan Today that the Sindh government had withdrawn subsidy on tractor primarily because of hue and cry of the poor growers.
The authorities should continue with the scheme by handing over the balloting process to a third party. They maintained that only the influential landlords had access to the subsidy and yet again they were selling these new tractors to poor growers on easy installments.