Photo Credit: Post Courier
The cost of doing agriculture in the country is far too expensive, said Minister for Agriculture and Livestock John Simon.
He said there are challenges in the sector that are far more expensive.
“As soon as I became the minister, I did research and found out that the cost of doing agriculture in Papua New Guinea is high.
“For instance, coffee at that time was paying K2-K3 so we wanted to lift the price up to K5 through the price support and interventions.
“Infrastructure development is far beyond comparison, farmers are stationed in the rural areas and that makes it more expensive, thus, it is better the price is increased so that the farmers get the fair price and boost production,” Simon said.
Meanwhile, the Farmers and Settlers Association has urged the appropriate authorities to evaluate the issue in light of the legal and policy consequences for the country's industry.
The announcement comes after most, if not all, government departments and organizations raised non-tax fees and levies.
As a result of the chain reaction, many firms would pass the cost on to the people of PNG.
Agriculture, food processing, exporting, and rural businesses are all affected, according to Wilson Thompson, President of the Farmers and Settlers Association. PNG is dealing with COVID-19 issues and a struggling economy, and agriculture, food processing, exporting, and rural businesses are all affected.
“We know that the government agencies will not review their own decisions, but our concern is the collective impact on the producers and the micro and SME business and the consumers,” he said.
Increases in wharfage fees and fuel prices will lower the price that growers or farmers receive for coffee, cocoa, coconut, rubber, and tea, while customers will pay higher prices for sugar, rice, wheat, and fresh foods and vegetables that rely on fertilizers and fuel, among other things.
“We request the Independent Consumer and Competition Commission (ICCC) to deliberate independently on the issues,” added Thomson.
Reference:
Tom, Patrick. Post-Courier (13 July 2021). “Cost Of Agriculture In PNG Too Expensive, Says Simon”.
