Pakistan's Agriculture, Cotton & Textiles - News and Updates

[Hyde]

لوڈ شیدڈنگ کی وجہ سے megawatt سب کے سر پے سوار ہے

ال تھینکس ٹو راجا پرویز اشرف

 

[ameer219]

Milk supplied in Pakistan is fit for human consumption: report

RECORDER REPORT

LAHORE (April 29 2010): The milk supplied by the milk manufacturing companies in Pakistan is fit for human consumption said a analytical report prepared by a German laboratory. Justice Syed Mansoor Ali Shah of the Lahore High Court (LHC) on April 01 last had barred media from publishing this report when private milk manufacturing companies expressed anxiety and had requested the court that the report should not be published by media.

The report duly signed by a state certified food chemist of German, Sascha Schmidt, said that they had examined the milk samples with all due diligence and the samples had been obtained in Hamburg in perfect conditions with all seals intact. All samples were photographed and opened under witness and the result of test conducted by Eurofins Global Control, Hamburg, Germany, indicated that all milk samples were fit for human consumption, the chemist said adding that their judgement was only valid for the sample analysed and the parameters, which had been checked.

"There might be other toxicological issues like heavy metals and mycotoxins, which might cause problems, but which were not in the scope of this investigation," he added in a covering note addressed to the Lahore High Court. The state chemist said that Dr Nader, managing director of Eurofins Global Control, will visit Punjab province soon and would be available to give further support for this very important project.

The judge allowed media to publish the said report, here on Wednesday and adjourned the proceedings in the petition filed by Barrister Zafarullah Khan of Watan Party Pakistan against supply of adulterated milk by private milk manufacturing companies to May 18.

Copyright Business Recorder, 2010Business Recorder [Pakistan's First Financial Daily]

 

[ameer219]

Rs 148.19 million for seven agricultural research projects approved

Business Recorder [Pakistan's First Financial Daily]

RECORDER REPORT

LAHORE (April 30 2010): Punjab Agricultural Research Board (PARB) has approved an amount of Rs 148.19 million for funding 7 high-priority research projects. Out of this allocation, Rs 13.712 million were approved for the project "Exploration of Rice Bran Oil Production", aimed at development of stabilisation technology for rice bran oil through different techniques including streaming, extrusion, hot air-drying and chemical stabilisation.

The approval was given in the 21st meeting of Board of Directors of the Punjab Agricultural Research Board (PARB) here on Thursday. Punjab Agriculture Minister Malik Ahmad Ali Aulakh chaired the meeting, said a spokesman of the department. The board approved Rs 26.218 million for "Standardisation of Olive Propagation and its Value Addition Techniques".

As a result of this development project, olive varieties suitable for Punjab and its standardised propagation techniques would be available. It also approved Rs 26.196 million for the project "Micro Propagation of Date Palm through Tissue Culture", through which 100,000 true-to-type in vitro raised plantlets of promising date cultivars will be available.

An amount of Rs 17.476 million was approved for "Development of Drought Tolerant Cotton Variety" with the objective to develop 20 percent higher yielding cotton variety than all other traits in desirable limits under drought conditions. Moreover, an amount of Rs 22.406 million was allocated for "Genetic Improvement of Sugarcane for Herbicide Tolerance" to develop transgenic versions of Sugarcane varieties HS-240, SPS-234, SPF-213 & CPF-240.

An amount of Rs 25.00 million was approved for "Development and Commercialisation of Indigenous BT and Herbicide Tolerant Maize Hybrids" with the objective to develop one local maize hybrid equal or better than the elite maize hybrids in the market.

An amount of Rs 17.180 million was also allocated for "Improvement of Salt Tolerance in Wheat", aimed at enhancing productivity of wheat in salt affected areas. Earlier, it was briefed in the meeting that PARB has provided Rs 436.904 million for agricultural research during 2007-08 and 2008-09 for 21 research projects.

Minister for Agriculture Malik Ahmad Ali Aulakh said agriculture is the top priority of Punjab government for which adequate resources are being provided to conduct researches according to international standards for enhancing productivity on sustainable basis. He revealed that an efficient monitoring and evaluation system is being introduced for smooth functioning of projects and ensuring that the objectives of the projects are being fulfilled.

The meeting was attended by PARB members including Chaudhry Mumtaz Ahmad Jajja, Member Punjab Assembly, Shah Jahan Bhatti, Member Punjab Assembly, Arif Nadeem, Secretary Agriculture, Dr Mubarak Ali, Chief Executive, PARB and representatives of Finance, Planning & Development Department, Forest and Livestock departments.

Copyright Business Recorder, 2010

EU allocates euro 50 million for food security

Business Recorder [Pakistan's First Financial Daily]

ISLAMABAD (April 30 2010): The European Union (EU) has allocated Euro 50 million for Pakistan and one billion globally to address the emerging issue of food security, adding that more than 60 million people are suffering from food insecurity in Pakistan.

This was said by the Ambassador of European Union Jan De Kok, Wolfgang Herbing Country Director World Food Program (WFP), Secretary Ministry of Food Agriculture and Livestock (MINFAL) Zia-ur-Rehman and Secretary Sindh Agha Jan Akhtar during a dialogue workshop on food security here in a hotel on Thursday.

The head of the delegation and Ambassador EU Jan De Kok said that the European Union has allocated globally Euro one billion to address the issue of food security amongst the vulnerable segment of population such as children and women. He said Pakistan has been received the highest grant amongst all the countries as allocated a total of Euro 50 million for improving food security of the rural people on sustainable basis. The EU ambassador said in Pakistan more than 60 million people mostly residing in rural areas are suffering from food insecurity.-PR

Copyright Business Recorder, 2010

Mango export to start from May 15: MoC

Business Recorder [Pakistan's First Financial Daily]

RECORDER REPORT
LAHORE (April 30 2010): The Ministry of Commerce (MoC) has fixed the start off date for export of mangoes at May 15 instead of May 20 this year. Pakistan Horticulture Development and Export Company (PHDEC) sources said here on Thursday that on the desire of Fruits and Vegetables Exporters Association (FVEA), PHDEC had pursued for early start off date for mango exports.

Reason for change of date is stated to save wastage of fruit due to early ripening of mango this season, the sources added. The new start off date has been notified vide a notification No 1(14)/2005-E-I/IV under Serial No 4 (ii) of Schedule-II of the Export Policy Order 2009, the sources concluded.

Copyright Business Recorder, 2010

 

[ameer219]

Textile exports register 20 percent growth in March

HAMID WALEED

LAHORE (May 02 2010): Textile industry registered 20 percent growth in exports in March 2010 comparing with March 2009, giving a picture entirely different from what the apparel sector is trying to paint simply to deceive the Minister for Textile Industry, adamant to curtail exports of yarn.

The textile exports are witnessing exponential growth, in value terms, with 38 percent increase in exports of raw cotton, 18 percent in cotton yarn, 9 percent in cotton cloth, 306 percent in yarn other than cotton yarn, 20 percent in knitwear, 7 percent in bedwear, 26 percent in towels, 31 percent in tents, canvas and tarpaulin, 16 percent readymade garments, 103 percent in art silk & synthetic textile, 35 percent in made-up articles, and 75 percent in other textile materials.

In quantity terms, raw cotton export increased by 25 percent in March 2010 against March 2009, followed by 10 percent decline in cotton yarn, 6 percent increase in cotton cloth, 91 percent decline in cotton carded or combed, 315 percent increase in yarn other than cotton yarn, 11 percent increase in knitwear, 15 percent increase in bed wear, 88 percent increase in towels, 48 percent in tents, canvas & tarpaulin, 6 percent decline in readymade garments and 85 percent increase art silk and synthetic textile.

Interestingly, the value-added sector is crying for imposition of ban on exports of cotton yarn in a situation where its exports are showing upward trend. Therefore, the market sources are of the view that the value-added exporters are not worried about the exports of cotton yarn but increase in price of it. Eventually, they have started pressurising the Ministry of Textile to restrict its exports.

Any such move, it is generally believed, would result in a glut of cotton yarn within the country that would ultimately lead to reduction in yarn prices, a raw material to the production units of value-added sector. The Ministry of Textile has already succumbed to value-added sector pressure and it restricted exports of yarn to 50,000 tons a month in January 2010, followed by a further reduction in it to 35,000 tons a month.

The spinners rushed to the judiciary where they got immediate relief. But this is not enough for opening up the eyes of value-added sector and even the Ministry of Textile. Both of them are in the process of cornering the spinning industry again by imposing regulatory duty on exports of yarn from the country.

The spinners, on the other hand, neither the value-added exporters nor the Ministry of Textile Industry showed concern when the exports of yarn were abysmal low and prices were highly doldrums. Today, when the yarn prices have jumped upward in the wake of increase in cotton prices, the value-added exporters have started pursuing the government aggressively.

Particularly, the textile labour in Faisalabad has proved a true mover and shaker of the situation. Its aggressive mood perturbed the government badly and the Ministry of Textile not only ensured load shedding for minimum period but also imposed ban on exports of yarn, a distortion to the free market mechanism.

This situation annoyed the spinners and they observed a successful countrywide strike, but all in vein, as all cries of the spinning industry fell on deaf ears of the Ministry of Textile Industry. The Ministry is adamant again to distort the free market mechanism.

Gohar Ejaz, Chairman of All Pakistan Textile Mills Association (Aptma) Punjab, when contacted, said precisely: "Let bygones by bygones. We strongly believe that Rana Farooq Saeed Khan is minister of whole textile chain and not the value-added sector alone; therefore, sanity would definitely prevail." According to him, the spinners are ready to cooperate with the Ministry, provided it is there to ensure 'judicious balance' in the state of affairs. He said the Aptma had nothing personal against the Ministry and, instead, it is flagship of the Ministry of Textile Industry.

Copyright Business Recorder, 2010



FMI trying to introduce cheap agriculture equipment, seeds

ABDUL RASHEED AZAD

ISLAMABAD (May 02 2010): The Farm Machinery Institute (FMI), in collaboration with National Oilseed Development Project (NODP) and Pakistan Agricultural Research Council (Parc), is making all possible efforts to introduce cheap and modern agriculture equipment's and seeds for the growers.

The organisations have taken a number of steps, including reduction in the post-harvest losses in maize, particularly, due to manual shelling by the equipment. Previously, the farmers used to shell maize ears by manual beating, which resulted in losses. To overcome this, large shellers, operated by tractors were imported and used by some farmers on rental basis. The rent of shellers was very high and its availability to the farmers remained low, officials of FMI said.

Similarly, the FMI developed a tractor PTO driven 'pneumatic row crop planter', which handles seed very gently, using air suction through holes of a rotating disc. It is capable of planting a wide range of seeds like maize, sunflower and tomato with uniform spacing.

It is locally available in four and six rows, depending on the size of the tractor. The 'pneumatic row crop planter' is cost-effective as it is convenient for weed eradiation. The officials said that quality seed is essential and can increase production by 10 to 20 percent, which is viable, free from weeds seed and diseases. Currently, 16 percent of wheat seed, 18 percent of paddy seed, 8 percent of pulses seed and 11 percent of vegetables certified seeds are available in the country.

One of the constraints in providing healthy seed to growers is non-availability of small-scale seed processing technology. To meet the acceptable standards, the undesirable materials must be removed from the crop seed, which is possible by providing a small-scale seed-processing unit to the seed growers and seed companies.

Copyright Business Recorder, 2010

Export of tractors, agri equipments

‘Pakistan can earn $700m foreign exchange’

By Ijaz Kakakhel

ISLAMABAD: The government can earn $700 million foreign exchange through export of tractors and other allied equipment by increasing their production capacity.

This was revealed in the draft report on National Engineering Exports Development Strategy (NEEDS), prepared by engineering industry experts. At present the informal Pakistani tractor exports are continued to Afghanistan, Bangladesh, UAE and African countries but potential market for tractors are Afghanistan, South Asia, Middle East and Africa. To exploit the formal market, the NEEDS suggested to the tractor manufacturers need to increase their production capacity as well as of their vendors to create an exportable surplus. The manufacturers also need to resolve territorial licensing issue. If these two challenges are met by the industry, the tractors’ export potential can go up to $500 million.

The engineering industry stakeholders’ strategy also claimed that the government could earn at least $200 million from export of agricultural implements. Pakistan manufactured a number of agricultural equipments like wheat threshers, laser scraper, sunflower thresher, reaper, straw chopper, disc harrow, seed drills, potato digger, potato planter, disc plough, chisel plough, border disc, bed planter, Ridgers, tillers, blades, seed graders, cartage trolleys, comb ploughs, cultivators, land levelers, lawn movers and maize sheller.

Exports of these agriculture equipments already continued to Afghanistan, Bangladesh, UAE, and African countries. But more potential export markets are South Asia, Middle East, African countries, Afghanistan and Central Asian Republics. To exploit the new potential export market, the industry needs to restructure itself through merger and grow into an economic size. The strategy suggested that the existing model of exports, through third parties trading export businesses, needs to be formalised and supported. The new markets also required adoption of design drawings and standards are a must for boosting agriculture equipments exports.

The strategy identified some weaknesses in tractor exports and recommended to take appropriate measures for its removal. These weaknesses are; manufacturing capability not enough to produce export surplus, the franchise or technical assistance agreements limit exporting rights and product development not undertaken to produce higher end tractors needed for sophisticated markets.

Despite such weaknesses, the stakeholders claimed that the agriculture tractors industry is mature and is well entrenched in the domestic market and almost totally occupies the space. Basic kill set is available, large pool of low cost human resources and a large vendor base is available to support manufacturing and supply to after sale market.

According to the stakeholders, the agriculture tractor manufacturing industry in Pakistan is quite old. Rana Tractors (now Millat Tractors) started assembly of Messy Ferguson Tractors in Lahore in the 1960s and were followed by Alghazi Tractors (Fiat), Allied Tractors (Ford), Fecto (Belarus) and some others. Currently, Pakistani market is dominated by Millat Tractors and Alghazi Tractors producing tractors from 50 to 85 HP and controlling 98 percent of the domestic market share. The local industry produces 54,000 tractors per year. The industry has a very strong backward linkage and depends on its vendor base in a big way. In some models of tractors local content is above 80 percent, which gives a lot of strength and price competitiveness to tractor manufacturers. Despite interests shown by foreign countries no exports could be made, as there is no exportable surplus.

On the other hand, the industrial segment manufacturing farm machinery and equipment is large, fragmented and totally unorganised. It consists of hundreds of micro and small-scale manufacturers throughout the country operating out of their backyards and small workshops. The manufacturers are clustered in and around Daska, Faisalablad, Okara and Mian Channu, the places, which have emerged as centres for manufacture. However, the production assets and technology available is obsolete and inefficient. The manpower is untrained with low skill level. No standards are followed in respect of input materials. The NEEDS in this regard suggested the government that appropriate measures would be taken to improve the current state of affairs through capitalising on existing strengths and by overcoming the weaknesses. If proper guidelines regarding agricultural equipments production according to the international standards were carried out, then Pakistan would be able to get $200 million foreign exchange earning through its exports.
http://www.dailytimes.com.pk/default.asp?page=2010\05\02\story_2-5-2010_pg5_11

 

[ameer219]

No wheat shortage in GB

Business Recorder [Pakistan's First Financial Daily]

ASTORE (May 03 2010): Deputy Commissioner, Qamer Shazad while rejecting the impression of wheat shortage said the district government had stored as many as 42,000 bags of wheat to meet the requirement of the masses. Talking to APP here Sunday, he said, it was our duty to supply adequate wheat to the masses and we were doing our duty efficiently.

He said orders had been issued to the civil supply officers to ensure uniform supply and any negligence in this regard would not be tolerated. Some sections of society were blaming the district government of black-marketing of wheat, he said, adding, " I challenge them to provide a solid evidence in this regard."

Copyright Associated Press of Pakistan, 2010

 

[ameer219]

Government mulling setting up of Small farmer development corporation

RECORDER REPORT

FAISALABAD (May 08 2010): The government is considering to establish a 'Small Farmer Development Corporation' (SFDC), whose equity will be owned by small and medium farmers (of less than 25 acres holdings), but to be managed by professionals. According to Planning Commission sources, the proposed SFDC could provide extension services, equitable access over markets for the purchase of good quality inputs, and marketing facilities for their products.

The specific institutional framework for the SFDC and other corporate enterprises, owned by the poor, is proposed in the ensuing section. According to an experts' report, prepared by the Planning Commission, an important factor in the current economic crisis is the food deficit, and the underlying stagnation in yield per acre of major crops. (In the year 2007-08 crop sector growth was negative).

It can be argued that if the yield potential of the small and medium farm sector (less than 25 acres) is achieved, food shortages can be converted into food surpluses. In the existing high prices of food grain in the international market, such a shift can enable Pakistan to convert its weakness into its strength.

The current crippling economic burden of food imports can be converted into strength through food exports. To bring about this transformation, a new policy framework is required to shift from the earlier elite farmer strategy to a new small farmer growth strategy, the report said.

According to the report, when the 'Green Revolution' technology became available in the late 1960s it was possible to substantially accelerate agriculture growth through an elite farmer strategy, which concentrated the new inputs on large farms. Now, the crucial determinant in yield differences became not the labour input per acre in which small family farms had been at an advantage in earlier decades, but the application of the seed-water-fertiliser package to which the large landlords with their greater financial power had superior access. Thus the 'Green Revolution' had made it possible to accelerate agriculture growth without having to bring about any real change in the rural power structure.

Today, after almost four decades of the elite farmer strategy, the imperative of land reform is re-emerging, albeit in a form more complex than before. As the large farms approach the maximum yield per acre with the available technology, further growth in agricultural output increasingly depends on raising the yield per acre of small farms, and reversing the trend of land degradation brought about by improper agricultural practices, the report added.

The experts report says that the small and medium farm sector whose yield potential remains to be fully utilised, constitutes a substantial part of the agrarian economy. Farms below 25 acres constitute about 94 percent of total number of farms, and about 60 percent of the total farm area. From the viewpoint of raising the yield per acre of small and medium farms (ie farms of less than 25 acres), the critical consideration is that 15.7 percent of total farm area in the less than 25 acre farm category is operated by landless tenants.

Another 13.07 percent of the farm acreage in less than 25 acre farms is operated by owner-cum-tenant farmers. Since tenants lose half of any increase in output to the landlord, they lack the incentive to invest in technology, which could raise yields per acre. Because of their weak financial and social position they also lack the ability to make such investments. Their ability to invest is further eroded by a nexus of social and economic dependence on the landlord which deprives the tenant of much of his investible surplus.

This problem is further exacerbated by the absence of an efficient land market where productive land can move to the more efficient operator. Institutional changes are required to enable flexible and secure tenancy contracts, and a competitive land market which can allow efficient operation of farm land, th report said.

It points out that the objective of raising yields in the small farm sector is inseparable from removing the constraints to growth arising out of the institutional structure of tenancy. A policy initiative that enables the tenant to acquire land is, therefore, an essential first step in providing the small farmers with both incentive and ability to raise their yields/acre.

Commenting over the 'State Land for the Landless', the report pointed out that an initial step in providing productive assets to the rural poor could be to allot the available 2.6 million acres of state-owned land to the landless. This cannot be seen as a substitute for a land reform programme of 'land to the tiller'. According to the Census of Agriculture 2000, there were about 4.97 million acres of private farm area under pure tenant cultivation in farms of below 25 acres. It is this acreage that would need to pass into peasant ownership for a genuine land reform to occur. Nevertheless, 2.6 million acres (assuming that all of it is cultivable) could make a significant contribution to the reduction of rural poverty, the report added.

For example, the report said, the 2.6 million acres of state owned land were to be transferred to landless farm households in holdings of 5 acres each, then as many as 520,000 tenant farmers would become owner operators. This means that out of the total number of tenant farmers (about 897,000) in the less than 25 acre category, as many as about 58 percent would become owner operators.

However, it is important to recognise that providing ownership of land to the landless is a necessary but not a sufficient condition for alleviating their poverty. Enabling the landless to make the transferred land cultivable, to actually settle on the new land and to achieve a sustainable increase in their income, productivity and savings are equally important factors in making the scheme successful.

The institutional framework for achieving this objective could be to establish a 'Small Farmer Development Corporation' (SFDC), whose equity is owned by small and medium farmers (less than 25 acres holdings), but managed by professionals, the report concluded.

Copyright Business Recorder, 2010


Around 2.3 million tons of wheat procured so far

RECORDER REPORT

LAHORE (May 08 2010): The Punjab food department has so far procured around 2.3 million tons of wheat during the on going 'wheat procurement drive 2010. According to the food department sources, it purchased 1, 09,692 metric tons of wheat on Friday and the total procurement reached to 22, 93,899 metric tons.

As far as the gunny bag distribution is concerned, it has so far distributed gunny bags sufficient to pack over 2.8 million tons of wheat. While on Friday it distributed gunny bags sufficient to pack 84,000 metric tons of wheat.

Region wise procurement on Friday shows that the department procured 80 metric tons from Rawalpindi, 12,105 metric tons from Gujranwala, 8990 metric tons from Lahore, 17339 metric tons from Faisalabad, 9787 metric tons from Sargodha, 14,655 metric tons from Multan, 15,253 metric tons from Sahiwal, 10,076 metric tons from Dera Ghazi Khan and 21,408 metric tons from Bahawalpur.

Copyright Business Recorder, 2010

'Pakistan may regain world mango market with growers' devotion'

RECORDER REPORT

MULTAN (May 08 2010): The President of MGAP, Zahid Hussain Gardezi, has said that though Pakistan has lost the initiative of producing world class mangoes due to absence of rapidly changing global technologies in horticulture and agriculture production for the service of growers in the country, yet with strong commitment and potential of the mango growers and with focused support by public sector institutions, the scenario could be reversed in the coming years due to the mesmerising flavour and taste of mangoes produced in Pakistan.

The President of Mango Growers Association Pakistan (MGAP)was speaking at a meeting of the mango growers after a visit of the Tevta Pak-German Institute Farm in Chak- 5 Faiz in Multan. These growers were on a study visit of high density mango orchard technologies being practised on the Institute under Pakistan-Australian Agriculture Sector Linkages Program through Pakistan Agriculture Research Council (PARC) Islamabad.

Zahid said that there is now more need to juggle with new technologies in agriculture, on priority basis, to combat the oncoming food scarcity due to dilapidating water resources and the increasing population to evade famine.

He said that modalities and irritants preventing its adoption by small and medium landholding growers should compulsorily be addressed in urgency by our scientists and researchers on highest priority as this would help alleviate poverty of under-privileged and smaller land holding mango growers and enable them to earn more from scarce landholdings. Project Director of the Institute, Zia ul Hassan Shad said that the institute was established with the finances of German government in 1959 and was maintained under the supervision of German experts till 1977.

He said that the Institute has produced hybrid varieties of cotton and wheat, apart from high density pears and exotic bud-wood of mango varieties grown over the world. The scientific officer of PARC, Islamabad, on High Density Mango Orchard, Qaiser Mehmood and agriculture officer of the Institute Abdur Raheem answered queries regarding high density planting of mangoes and pears while Amir Saeed, irrigation technician f PARC spoke on the facilitation of drip irrigation and its scope in high density plantation.

Copyright Business Recorder, 2010

 

[Hyde]

10-month cotton export up 140 percent ​

RIZWAN BHATTI
KARACHI (May 27 2010): Despite a massive shortage in the domestic market, the country's raw cotton export registered a robust increase of 140 percent during the first 10 months of current fiscal year mainly due to rising demand in the world market. Industry sources told Business Recorder on Wednesday that Pakistani exporters are getting massive orders on the back of high production and low prices in the domestic market as compared to other countries.

As per world cotton estimates, all major cotton producers including China are facing short cotton crop this year, therefore, cotton demand in the world market is increasing gradually and recently India imposed some 2.75 percent duty on the export of raw cotton to curb rising export of the commodity.

Pakistan achieved a bumper crop during the current cotton season and overall cotton production stood at 12.7 million bales during current fiscal year (2009-10) as compared to 11.2 million bales in last fiscal year 2008-09, depicting an increase of 1.5 million bales. Although, the country has got a bumper cotton crop, however it is much less than the consumption and not sufficient to meet the country's demand, which presently stood at some 15.5-16 million bales per annum.

Recently, the value added textile sector also demanded of the government to slap ban on the export of raw cotton, as local prices of cotton yarn are moving up due to short supply of raw cotton. However, local exporters are taking full advantage of free trade regime, as there is no restriction on the import and export of raw cotton due to the free economy under the WTO agreement.

According to the Federal Bureau of Statistics (FBS), the country's cotton export posted an increase of 140 percent during the first 10 months (July-April) of current fiscal year. The country exported worth $194.154 million raw cotton in July-April as compared to $80.835 million during the corresponding period of FY09, depicting an increase of $113.319 million.

Meanwhile, month on month basis cotton export also surged by 20 percent to $1.12 million during April 2010 as compared to $0.645 million during the same period of last fiscal year. "At present Pakistani exporters and traders are being offered lowest cotton price in the region as compared to other competitors, with the result they are getting massive export orders," said an exporter.

He said Pakistani raw cotton exporters are offering better quality cotton at reasonable price of some 80 cents per maund as compared to some 84-86 cents per maund by the Indian traders, while expected bumper crop in the upcoming season has also put a positive impact on the export of cotton. "We are expecting record export of raw cotton next fiscal year," he added.

 

[ghazi52]

Third meeting of Pak-US Strategic Dialogue in Agriculture concluded here on Tuesday with a broad agreement to continue to work together to modernise Pakistan’s agricultural sector to ensure adequate supply of food items; foster faster economic growth; alleviate poverty and enhance rural employment.

Areas identified for future cooperation include crop productivity enhancement, particularly, in wheat and cotton, animal and plant diseases; dairy development; horticulture, market access for Pakistani agricultural products including mangoes as well as various other areas of research development and extension and water management.

During the deliberations it was agreed to strengthen collaborative research and to broaden private sector for economic growth in the agriculture sector, says a joint press release issued at the end of the meeting.

Secretary Ministry of Food and Agriculture Junaid Iqbal led the Pakistani side at the talks while the US delegation was co-chaired by Darci Vetter, Deputy Under-Secretary for Farm and Foreign Agricultural Services, US Department of Agriculture and James Bever, Assistant Administrator of USAID.

Ms Darci Vetter told newsmen after the meeting of strategic dialogue that a lot is yet to be done in the bilateral cooperation and the third meeting of dialogue was aligned with that direction. We are moving ahead with action plan on priority areas that would measure results of our efforts, she said.

 

[bc040400065]

Banks disburse Rs215bn to farm sector

By Our Staff Reporter
Tuesday, 22 Jun, 2010

KARACHI: Bank credit to agriculture sector increased in the first 11 months of 2009-10 but remained much behind the target.

The State Bank reported on Monday that agricultural credit disbursement by commercial and specialised banks rose 6.40 per cent year-on-year to Rs215 billion in July-May of 2009-10.

In absolute terms, the agriculture credit disbursement increased by Rs12.934 billion during the period under review against Rs202 billion the same period last year.

Farm credit disbursement by five major commercial banks Allied Bank, Habib Bank, MCB Bank, National Bank and United Bank – rose to Rs107 billion in July-May compared with Rs98 billion the same period last year.

Zarai Taraqiati Bank, the largest specialised bank, disbursed Rs67.741 billion in the July-May period, up 7.1 per cent when compared with Rs63.249 billion in the same period last year.

While disbursement by Punjab Provincial Co-operative Bank stood at Rs3.861 billion compared with Rs4.018 billion in the same period last year. Besides, 14 domestic private banks also loaned a combine Rs36.423 billion during this period compared with Rs36.609 billion disbursed in July-May 2009.

The State Bank has set an indicative agricultural credit disbursement target of Rs260 billion for fiscal year 2009-10. Banks disbursed a total of Rs233.01 billion to the agricultural sector in FY09. The average monthly disbursement is less than Rs20 billion which means the banks could hardly disburse Rs230 to Rs235 billion till end of this fiscal year.

DAWN.COM | Business | Banks disburse Rs215bn to farm sector

 

[khawajafarid]

pakistan can be a succesful country only if agriculture & industry both are developed

 

[H2O3C4Nitrogen]

Pakistan textile exports: Call for wider lifting of U.S. tariffs intensifies

By Nicolas Brulliard
Friday, December 24, 2010


FAISALABAD, PAKISTAN - The United States has spent billions of aid dollars on Pakistan, but more than nine years after Islamabad joined the global fight against terrorism, the U.S. government remains unable to provide its strategic ally with one thing it really craves: easier access to the U.S. market for its T-shirts, towels and socks.

Pakistani leaders have long sought trade concessions from their U.S. counterparts in recognition of Pakistan's efforts to root out insurgent groups on its soil, but the calls for lower tariffs have intensified since this summer's floods, which displaced millions and destroyed much of the country's cotton crop.

Lifting tariffs on Pakistan's textile products would undoubtedly boost the country's economy. The textile sector employs nearly 40 percent of Pakistan's industrial labor force and accounts for 60 percent of its exports, and the United States is already one of Pakistan's biggest markets.

But American advocates of trade liberalization with Pakistan say it would also do much to further U.S. strategic interests, by promoting economic activity in hotbeds of Islamist extremism and providing jobs for people who might otherwise be tempted to join the insurgency.

That is why President George W. Bush said during a 2006 visit to Pakistan that products manufactured in designated areas of the country would enjoy duty-free status in the United States, a policy reaffirmed by President Obama when he presented his new strategy for Afghanistan and Pakistan in March 2009.

The House last year passed a narrowly focused bill designed to promote export industries in Afghanistan and specific zones primarily in Pakistan's northwestern border region, but a corresponding bill has been stalled in the Senate. Separately, the U.S. textile industry has made clear it would strongly oppose any legislation that is more ambitious than the bill being considered, saying it would put American jobs at risk.

Pakistani officials and business leaders say they understand that U.S. lawmakers have to answer to their constituencies, but they insist that increased bilateral trade would benefit both countries.

"We do not want aid. We want trade," said Salamat Ali, chairman of Tauseef Enterprises, a garment company based in this Punjab province city that is home to hundreds of thousands of textile workers and 300,000 power looms. "It's better for America and for other allies if Pakistan stabilizes."

Seeking a wider agreement

Pakistan typically exports about $10 billion of textile products each year, with about a quarter of that amount going to U.S. retailers. Waqar Masood Khan, secretary of the Textile Industry Ministry, said that if the United States and Europe lifted trade restrictions, it would result in a $3 billion increase in exports in the short term.

Pakistan succeeded recently in securing trade relief from the European Union, which agreed to waive tariffs on certain textile products from Pakistan for up to three years, starting in January. Pakistanis welcomed the concession but said the waivers, which exclude some finished goods, are unlikely to result in any significant increase in trade.

As a beneficiary of the U.S. Generalized System of Preferences program, Pakistan enjoys duty-free status on about $200 million worth of its exports, but those do not include textile products. Ed Gresser, president of the Democratic Leadership Council and a trade policy analyst, said the United States imposed a $315 million tariff penalty on Pakistani exports last year - or about 10 percent of their total value. Because textile products are taxed heavily, Pakistan pays disproportionate tariff rates in comparison with more diversified economies.

"In general, U.S. trade policy treats Pakistan quite badly," Gresser said. "We should try to promote the Pakistan economy as a whole."

Much of Washington's assistance to Pakistan has been in the form of monetary aid. Last year, Congress authorized a $7.5 billion nonmilitary aid package to be spent over five years. But Gresser said that if Congress can disburse $1.5 billion of aid to Pakistan each year, it should not hesitate to waive less than half a billion dollars in tariffs, given the potential benefit to Pakistan's economy.

Gresser is not the only one advocating a wider trade agreement than the one Congress is weighing.

After the floods, the U.S. Chamber of Commerce urged the Obama administration to push for a bill that would include parts of Pakistan "more likely to attract investment" than those included in the present legislation, mostly in the lawless areas near the Afghan border. Last month, a report issued by the Council on Foreign Relations called on the administration to liberalize tariffs on textile imports from Pakistan, adding that such an agreement "could provide employment opportunities for millions of young Pakistanis, discouraging them from paths leading to militancy."

U.S. opposition

The administration has pledged to help Pakistan diversify its exports and help it enhance its export industries, but so far it has resisted calls for more ambitious tariff cuts.

"The original intent of the legislation was to boost employment of young men in the areas hardest hit by militant extremism, not existing textile factories in Karachi and industrial areas of Punjab," said Alberto Rodriguez, a spokesman for the U.S. Embassy in Islamabad.

American textile manufacturers also sent a letter to U.S. Trade Representative Ron Kirk and Secretary of State Hillary Rodham Clinton warning against legislation broader than the current bill, saying that it would result in significant job losses in the U.S. textile industry when the United States is already coping with unemployment rates of nearly 10 percent.

David Trumbull, vice president for international trade at the Boston-based National Textile Association, also said that too often it is the textile industry that has borne the brunt of U.S. trade concessions.

But Pakistani textile factory owners say substantial trade relief is essential at a time when their industry is facing all sorts of challenges.

Because of security concerns, prospective foreign buyers are reluctant to visit Pakistan. High cotton and polyester prices and general inflation have increased production costs significantly.

More crippling, though, are electricity and gas shortages. Some factory owners use more costly generators and wood furnaces to compensate, but many just choose to leave power looms idle and let workers go.

"The Christmas and New Year orders are coming now, and this is the time to ship them," said Waheed Khaliq Raamay, owner of a weaving factory in Faisalabad. "Because of the gas shortage, we are losing customers - and we are losing our faith as well."

Brulliard is a special correspondent.



The Washington Post

 

[Omar1984]

Pakistan exports $1.5 billion rice in 9 months ​

LAHORE: Despite devastating floods last year, rice exporters have exported rice worth $1.5 billion during the first nine months of the current fiscal and if the government gives due support and zero-rated tax regime—rice exports can double in the next few years. Rice Exporters Association of Pakistan (REAP) acting Chairman Taufeeq Ahmad Khan made these remarks while addressing a news conference at REAP office on Monday. Khan said that owing to heavy flooding last year and unrest in Middle East, rice exporters had anticipated a 50 percent decline in rice exports—but “better basmati pricing played a pivotal role this year, boosting exports” He said that during July-March 2010-11, Pakistan had exported 2.75 million tonnes of rice of which 0.80 million tonnes was basmati and 1.94 million tonne were non-basmati varieties. staff report

 

[Omar1984]

Rs 4.6 billion subsidy for farmers? ​

ECC sets up committeeto decide on subsidy

By Sajid Chaudhry

ISLAMABAD: The Economic Coordination Committee of the Cabinet (ECC) on Monday set up a committee to decide whether or not to provide Rs 4.6 billion subsidy to farmers on the imported 225,000 tonnes of urea fertilizer.

The ECC also allowed Pakistan Agricultural Storage and Services Corporation (PASSCO) to sell 200,000 tonnes wheat to arrange financing for the upcoming wheat procurement operations.

The ECC meeting was held under the chairmanship of Finance Minister Dr Abdul Hafeez Shaikh.

The meeting was informed that the Trading Corporation of Pakistan (TCP) had imported 125,000 tonnes of urea at a cost of Rs 2,102 per tonne (Rs 2.8 billion) from Saudi Basic Industries (SABIC), while on open tender basis it had imported 100,000 tonnes at Rs 1,902 per tonne (Rs.1.8 billion). The subsidy for open tender urea was Rs 932 per bag while for SABIC it was Rs 1,132 per bag if the local prices of Rs 970 per bag were to be maintained. The meeting was informed that import of urea at Gwadar Port was Rs 100 per bag costlier due to the upcountry transportation costs.

The source said Ministry of Industries had sought fixing of imported urea prices comparable with the market prices. After having detailed deliberation on the subject, the finance minister constituted a committee comprising Planning Commission deputy chairman, secretaries finance, commerce, agriculture, industries and TCP chairman to have further deliberations and submit their report in the next meeting.

The ECC was given presentation on the implementation of the last decisions made by the committee. The source said two ministers, Makhdoom Shahabuddin and Hina Rabbani Khar expressed concern over the slow pace of implementation due to bureaucratic red tap. The chairman of the committee observed that the pace of the implementation on the decision was slow and instructed the concerned secretaries to accelerate it.

Some of the ministers also expressed concern that some of the summaries recommended for the consideration of ECC did not follow the laid down criteria, the source said, adding that no mandarin was able to tell the committee that controls or determines the sale price of urea.

According to the press release of Ministry of Finance, the ECC accorded approval for the sale of 200,000 tonnes of wheat stocks lying with PASSCO. In its summary, the Ministry of Food and Agriculture had proposed that PASSCO be allowed to sell 200,000 tonnes of wheat lying in its stores out of a total wheat stock of 1.3 million tonnes. After sale of 200,000 tonnes of wheat, the remaining wheat stock with PASSCO will be treated as strategic reserves.

On the summary moved by the Ministry of Finance, proposing that institutional investment in the National Savings Scheme (NSS) may be discontinued except that individual funds like pension, gratuity, superannuation, contributory provident funds and trusts, etc, held by the institutions may be allowed for investments in NSS. The restriction on investment of surplus government institution funds in NSS will provide them greater reliance on regularly auctioned government bonds. This would play a role in deepening financial sector in broadening access of entities other than financial institutions in the bond market.

 

[ghazi52]

Kinnow export target of 300,000 metric tons achieved -- APP

ISLAMABAD: Pakistan has achieved its kinnow export target for the year 2010-11 by exporting about 300,000 metric tons of the commodity.

An official in the Pakistan Horticulture Development and Export Company told APP here Wednesday that Pakistan was the sixth largest citrus producing and exporting country in the world.

He said that citrus is grown on an area of about 199.5 thousand hectare with annual production of 2458.5 thousand metric tons.

Kinnow season year 2010-11 was started in early November 2010 and even at this time kinnow color was not developed properly but its brix was at par required for most of gulf export markets.

At present, he said that more than 200 packing houses were in action with production of about 8000 metric tons per day adding that commercial exporters were supporting the kinnow industry and sharing the main business risks of common processors.

Meanwhile, he said that kinnow is being exported to all destinations and permission for kinnow import in Iran at a meager four per cent duty was a great opportunity for Pakistani exporters and they availed it fully by sending huge consignments to Iran through Quetta.

All the inputs were easily available in required demand, but he said that at the start of season, there were some issues regarding labor availability because of floods in the country but local labor replaced it on time.

He said that final statistics would be announced by the Federal Bureau of Statistics and it is expected that final figures of kinnow export may cross the 300,000 metric tons mark.

 

[ghazi52]

Danish company to import Pakistani dates

Catsus, one of Denmark’s leading fruit snack producer company, would now import nutritional dates from southern of Pakistan to develop fruit bars for children in Denmark.
It would import around 800 tons of dates per year carrying a total value of $0.65 million. This is the first time that Pakistan would export dates to Denmark, a development that encourages room for Pakistani products in Denmark.
Castus buys its raw material from across the world and supplies snacks from natural ingredients only. The Danish enterprise has shown quite an appreciation of the quality of dates being produced in Pakistan. “We are extremely impressed by the quality of dates and other raw material being produced in Pakistan and wish we had seen these market opportunities in the past.
However, looking ahead, we have received great interest from many other Pakistani enterprises on supply of natural raw material for our products in Denmark. We find the Pakistani companies extremely professional and credible and we are hoping for long term collaborations and many more business contracts with the Pakistani suppliers,” said Carsten Jensen from Castus. The company has entered into an agreement with Pakistani supplier companies Khaipur and Royal Food.
The Danish Ambassador to Pakistan, Uffe Wolffhechel, We are extremely pleased to see that Danish companies see business opportunities in Pakistan and will be focusing this way to boost the business development in Pakistan.”
Mette Rasmussen Head of Marketing Castus also expressed her acknowledgement for the role of the Danish embassy in Pakistan as facilitators in creating this first time business collaboration.

The Nation