Tarin refuses to subsidize import of tractors
Ibn-e-Ameer
Islamabad: Finance advisor Shukat Tarin has opposed a proposal to subsidize the import of tractors.
The food Ministry wants to allow the import of tractors, breaking the monopoly of existing manufacturers.
In a meeting, cabinet members had agreed to allow the import of tractors of high horsepower.
But, Shaukat Tarin opposed a proposal to subsidize the import of tractors. Ministry of National Food Security proposed to subsidize the import of tractors.
But, Tarin opposed the proposal to subsidize the import of tractors.
The government had offered loans to the small farmers in the Kamyab Pakistan Program.
The food ministry said that two existing manufacturers had a market monopoly.
It said that they did not complete the deletion program and were charging higher prices. But cabinet members did not agree with the viewpoint of the ministry of national food security.However, they agreed with the import of tractors.
According to Ministry, local tractor manufacturers had monopolies in the market.
They also failed to complete the deletion program.
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It said that they were still assembling tractors. Cabinet members pointed out they produce 99 percent of the parts.
They said the prices of manufactured tractors were internationally competitive.
This is why competitive prices enabled the industry to export tractors to Africa.
Cabinet members agreed to allow the import of tractors to address the issue of horsepower. Import could meet the horsepower strength, they said.
The food Ministry also proposed a tax break for new entrants in tractor manufacturing. It aimed at breaking the monopoly of tractor companies.
They were producing low-quality tractors while charging higher prices from the farmers.
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At present, 64 percent of farmers have less than 5 acres. But, 89 percent have less than 12 acres of agricultural land.
Local tractor manufacturers were producing tractors ranging from 50-85 horsepower (HP).
This is an inappropriate horsepower of available tractor models for farmers.
India had tractors with 17-120 horsepower tractors. Ministry further said tractor manufacturers were producing low-quality tractors which required action.
It sought policy interventions to ensure local tractor industry manufacturers a wider range (20-120 hp).
It recommended the import of suitable tractors to subsidize loans and cut in duties.
The food Ministry proposed to incentivize new entrants to produce tractors in Pakistan.
