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Feudalism
prevails as CAF approved by federal cabinet
ISLAMABAD: The federal cabinet here Wednesday was warned that
the introduction of Corporate Agriculture Farming (CAF) in the
country would result in the revival of the feudalism,
increased poverty and displacement of the small farmers on a
large scale, it is reliably learnt.
However, the policy was approved despite objections raised by
the ministers and certain measures were announced to attract
the investment in this sector. Sources said these ministers
who had pro-farmers stance rather proposed to allot the state
and other lands to the local people of the areas where such
lands would be offered to the multi-national or local firms
for cultivation.
Sources said heated debate took place on the summary
containing the salient features of the Corporate Agriculture
Farming (CAF) submitted by the Agriculture Ministry when the
deputy chairman Planning Dr Shahid Amjad Chaudhry pointed out
to the President General Musharraf that this new policy was
not only the negation of government's existing policy of
alleviation of poverty from the rural areas, the new measures
could also result in revival of feudalism in the country. He
said this policy would be exploited by the big families who
were hard hit by the land reforms in the country as they would
join hands in the name of Corporate farming. Reportedly, Mr
Shahid Amjad feared that in addition to that, the new policy
would also fail the already stalled process of land reforms in
the country.
Sources said he was fully supported by Chief Executive Advisor
on Agriculture M Shafi Niaz who also expressed similar views
on the summary and opposed its approval in the given shape
saying it was confusing and should be set aside.
Sources said the both the cabinet members having agriculture
background were of the view that the small farmers would face
havoc impact of this new corporate farming policy and they
would be exploited by the modern forces and could result in
more poverty and miseries.
Sources said however, the ministers like finance, commerce and
agriculture joined their mighty hands to frustrate the efforts
of the Deputy chairman Planning and CE Advisor to get the
summary delayed and more work be done as they all had already
worked out how to get that controversial policy approved from
the cabinet.
Sources said the pro-element of the CAF were of the view that
new policy would help in achieving the huge production and
food security would be ensured. Sources said the Cabinet also
disagreed with the proposal to declare the CAF as an industry
as again the finance and commerce ministry were against this
useful purpose.
Sources said the cabinet also approved the policy to not give
labour rights to the people who would be working on the lands
to be cultivated under the CAF policy. Following is the text
of summary on whose basis the new policy has been approved.
The summary submitted by the Agriculture Ministry in the
cabinet was obtained from Agriculture Ministry sources.
"In pursuance of directive of the chief executive received in
Feb 2001 MINFAL was in consultation with concerned ministries.
The ministry of food, agriculture accordingly circulated the
decisions of the concerned. The ministry also introduced the
policy package on the public media. Further the minister for
finance convened a meeting on May 18 2001.
Meanwhile, on a representation from the President of the
Punjab chamber of Agriculture another expressing apprehensions
that the policy by creating monopolies runs the risk of
exploration of small landholder by the multinationals. The
president secretariat directed that the policy be placed
before the federal cabinet for a decision.
MINFAL having analysed the concerns of the President of Punjab
chambers of agriculture, finds these misplaced. We also
requested for views of the concerned ministries and
departments on a draft summary. They have been received and
are summarised. The most significant difference of opinion has
been raised on the declaration of the CAF as an industry.
It may be noted that in the meeting chaired by the finance
minister on May 18, 2001 the general consensus was that such
declaration may dampen investors interest in the initial stage
as it would make it necessary to subject CAF to numerous
levies and to strict enforcement of labour laws. On the other
hand, there would be little value added from the measures as
the state bank of Pakistan has already extended credit
facility to CAF under its normal banking channels. All the
ministries and department including MINFAL share this view.
The CE secretariat has however, directed for submission of
requisite summary to the cabinet containing he proposal to
declare CAP as an industry along with the exemption that it
would not be subject to those levies and the industrial
establishment laws which are applicable to an industry.
The Ministry of labour, in view OF Pakistan ratification of
ILO convention concerning the right of association in
agriculture feels that the government is obliged to enact laws
to extend labour laws to agriculture and as such CAF is at par
with the law for labour in the industry. This ministry feels
that the application of labour laws be enforced after its
deceleration as an industry following a reasonable lead
period.
He Central Board of Revenue on the ground of protection of
local manufacturers has not supported the exemption of
agriculture plants, machinery and implement from the sales tax
beyond the extensive exemption given at present. Likewise, the
ministry of finance feels that the instructions by the SBP for
extension of credit through normal channels are adequate and
it does not support a separate credit line. The ministry of
agriculture should agree with both these views points subject
to a review of the situation after lapse of one year. The CAF
is foreseen to stimulate the national agriculture economy by
combing agricultural production, processing and management
under a single corporate entity. We do not apprehend major
displacement, as this initiative would work in tandem with
traditional agriculture, mainly on cultural wasteland. Even
where the corporate entity seeks ownership of the land, this
would be with the consent of landowners under binding
contractual agreement. As such this ministry endorses the
concept of CAF. However, we further feel that it would be
useful to undertake in tandem with CAF trails of the
comparable system of corporate managed farming which does not
involve any change in the ownership but introduces qualified
management expertise under a corporate arrangement to increase
the productivity."
Courtesy Dawn (Rauf Klasra)
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