Monday, December 07, 2015 the Pakistani English Newspaper Dawn says that, “Punjab targets more wheat output with less acreage.” (Khan) This season Punjab has spared 17.2m acres out of 700,000 acres agricultural land to grow wheat and allocate rest of the agricultural land to grow other diversified crops. This year despite of allocating less land for wheat, Punjab government claims to have more wheat production due to the agricultural subsidy package. Under this package the local farmers have given free certified seeds, subsidy on fertilizers and prices of fertilizers are also decreased. Fertilizer industries have agreed on selling fertilizers at low prices. The reason to decrease price of fertilizer is that if fertilizers will not be sold at the time of seed sowing then it becomes a dead investment for the importers. Secondly, this is a season of wheat sowing and the demand for fertilizer is already high in a market, if the fertilizer industries will reduce the price by a small unit, it will increase the demand considerably and as a result the total revenue of fertilizer industries will increase.
Punjab government is hopeful to have a more wheat production this year even after reducing the amount of land to grow wheat because the seeds used in this season are of good quality. According to the article, these seeds have potential to yield 80 maunds per acre, against the traditional seeds which only yield 30 maunds per acre. Here we can see the effects of advancement in a technology which increases the total production while using less of the available resources. According to the article, this year weather is also stayed ideal and the temperature in the province ranging between 15 to 20 degrees Celsius which is the perfect temperature for seed germination. Moreover, currently diesel prices are also down in the market, so farmers can run tube-wells on low cost to supply water for their farms. Hence, crop damage due to shortage of water will be lessened and low cost to run the tube-wells will cut the farmers’ cost of production. Consequently, the price of wheat will decrease and common people will get wheat on low prices. As wheat is the major staple food in Pakistan; therefore, we can say that more people will get benefit when the price of wheat will decrease. Further, low price of wheat will increase demand and as a result total revenue of farms will also increase.
The initiative taken by Punjab government seems promising to be beneficial for the framers, fertilizer industries and for the common people too. The reasons for Punjab government to be optimistic about this project dependents on various factors. Firstly, the advancement in seed technology and availability of this technology to common people through seed subsidy, which will help to produce more quantity while consuming less of the resources, it will shift Production Possibility Frontier (PPF) to the right which will increase efficiency of the farms. Secondly, the low prices of fertilizers will encourage farmers to buy more fertilizers to enhance the productivity. Due to which demand for fertilizers will increase, which will leads to increase the total revenue of fertilizer industries. Thirdly, low price of diesel in current market, as earlier mentioned that tube –wells will run on low cost during water shortage to the farms which will cut the production cost. Fourthly, the favorable temperature for seed germination will maximize the wheat production. On the bases of these factors provincial agriculture department hopes that the target of 19.5 million tonnes of wheat production will be achieved despite the lowing of agriculture land for sowing wheat crops. Let’s hope for the best.
Khan, Ahmed Fraz. “Punjab Target More With Less Acreage.” DAWN Business News. DAWN, 7 Dec. 2015. Web. 7 Dec. 2015. <http://www.dawn.com/news/1224588/punjab-targets-more-wheat-output-with-less-acreage>.