Mangoes reach market on May 20
Agriculture sector lacks efficiency, competitiveness’
LAHORE - Despite having immense potential, the agriculture sector of Pakistan lacks efficiency and global competitiveness, causing dent to self sufficiency in production of various farm produces, said Asad Umar, Chairman Pakistan Business Council while speaking to members of Agricultural Journalists’ Association (AJA). In his presentation on ‘Agriculture – a mainstay of Pakistan’s economy’ Asad Umar, who has recently assumed responsibility in Pakistan Tehrik Insaf as Senior Vice President after opting early retirement from top slot of Engro Corp, said production of various farm products has been as low as 90 per cent if compared with global benchmark. Sugarcane yield is 40 per cent lower if compared with global benchmarks, wheat yield is 20 per cent lower, non-basmati Rice yield is 40 per cent lower, cotton yield is 20 per cent lower and milk yield per animal is 90 per cent lower, he said. Read more →
USAID’s agribusiness project to create 1.3m jobs
USAID’s agribusiness project to create 1.3m jobs
By M. M. Alam
Karachi, MAY 17, 2012: Andrew Sisson Mission Director USAID has stated that various agribusiness projects (funded by the American people through USAID & implemented by Agribusiness Support Fund – ASF) some 1.3 million jobs would be generated. He was speaking at a MoU signing ceremony between Sindh Enterprise Development Fund (SEDF) & USAID’s ASF for cooperation in the areas of agriculture & agribusiness sector with particular focus on small & medium enterprises, held here on Wednesday.
Andrew Sisson noted though 21% GDP, 44% labor force & 70% of Pakistan’s exchange earnings was allied with agriculture, yet that & livestock sectors here were characterized by non-efficient production. He stressed on the importance of increasing productivity through adoption of new farming techniques & technological innovation. Commenting on the outcome of this 5-year 90-million-dollar Agribusiness Project he said that technical assistance programs targeted 62,500 farmers & 2,500 agribusinesses; leveraged investment was upto $320 million by the private sector through the provision of cost-sharing support to 45,000 farmer enterprise group members, 100 associations & cooperatives, 250 individual/corporate farmers, 140 SME’s & eight lead companies. ASF has teamed with an international organization CNFA for provision of expertise in relevant program implementation themes. He said that one of the objectives of the project was to strengthen the capacity in horticulture & livestock value chains to increase to domestic & foreign markets. Calling private sector the drivers of change, Andrew said USAID was working with “dynamic, vibrant, incredibly entrepreneurial & philanthropic private segment”.
Answering to a question regarding the change USAID had made so far Andrew informed that USAID was focused on 5 priority areas: energy, economic growth, agriculture, education & health. Quoting a few results achieved by USAID in the last couple of years he told they had added 450 mw of electricity benefiting 6 million Pakistanis (& in the next couple of years expect to add another 800 mw to the grid) – this include investments in three dams & renovating three power plants; support had been provided to 80,000 micro-entrepreneurs (mostly women – many in the dairy, working with companies like Engro & Nestle) who were getting more money & exposure now; USAID was in the process of financing construction of 600,000 acres of irrigation canals (& plan to increase it to a million acres in few years) benefiting hundreds of thousands of families; major investments had been made in FATA & KP where recently over 400 km of world-class roads had been made; construction of 215 km of road in South Waziristan just finished (“it is not an easy place to work”!). He told that due to the roads business was picking up in South Waziristan.
USAID Mission Director went on to inform that USAID (had been working for decades here as far as higher education was concerned: supported the creation of LUMS & IBA; helped set up several agricultural colleges…That tradition continues &) had just signed an agreement with HEC to establish three centers in three universities for agriculture, water and energy studies (these universities would be linked with American universities so that they could share knowledge). In basic education USAID had built hundreds of schools and the Sindh Minister of education had told Andrew that schools built a quarter century ago were still standing. He said that USAID would build hundreds of more schools and the bottom-line objective was to educate 3.2 millions kids. He told that USAID had launched National Literacy Campaign & had placed Basic Education Program in Sindh. Commenting on the health sector he said that USAID worked with lady health workers & built hospitals (two projects are under construction presently in Karachi & Jacobabad). He told that one of the foremost objectives of USAID was to reduce child mortality. Andrew further informed that USAID was currently renovating systems for provision of clean drinking water in Jacobabad & Peshawar. Earlier USAID had provided clean drinking water to half of the population of FATA.
Chairman Sindh Board of Investment Zubair Motiwala who is also heading Sindh Enterprise Development Fund (SEDF) said that in less then two years SEDF had identified & financed 13 areas & more were in the pipeline.
Courtesy: Pakistan Observer
Punjab drafting law to save cane growers
LAHORE – SALMAN ABDUHU – The Punjab government is tightening noose around sugar industry as the Cane Act 1950 is being amended and new law is being drafted with a view to ensure payment to growers by the millers.
Sources said that Punjab govt has framed a new law to protect the sugarcane growers and a draft in this regard has been forwarded to CM who has approved it. This draft will be discussed in cabinet and will be tabled in assembly, which will approve it at the last stage. “The new law will empower the DCO, who is also Additional Cane Commissioner, to lodge FIR against sugar millers, and to take control of sugar stock, selling it through open auction and paying back money to growers,” sources said.
Earlier, law was mum on this issue and just up to Rs 10,000 fine could be imposed by the Cane Commissioner.
-Provincial Food Secretary Irfan Ali, while talking to The Nation, said that presently there is no law to protect the growers. Though millers are bound to make the payment within 15 days after purchase of cane but if they don’t pay, no action can be taken against them, he said. He added that the matter of payment remains pending for many years and govt could do nothing.
Responding to a question, he said that last year’s 100 percent payment by the sugar mills has been made while this year 80pc payment has been completed to cane growers.
The Nation tried to contact Pakistan Sugar Mills Association Chairman Javed Kiyani to get his point of view in this regard, but he did not respond.
However growers are of the view that as sugar millers belong to political parties of country, so the rulers had given them free hand to exploit growers and consumers.
-They claimed that Cane Commissioners and Food Secretaries always tell a lie and hide facts as only 20 percent payments have so far been paid. They said that Cane Commissioners and Food Secretaries are just like peons of parliamentarians, who own almost 60 out of total 75 sugar mills. How they can reveal the truth, they exclaimed.
They said that sowing of sugarcane decreased by 25 percent this year due to injustices of millers and it might decrease to further by 50 percent in the next season.
Kisan Board Pakistan (KBP) Secretary Information Haji Ramazan asked the Punjab government to consult with organisations representing growers and farmers for any change in the Cane Act.
He urged that payment of sugarcane should be made compulsory through cheque instead of Cane Procurement Receipt (CPR) and strict punishments should be awarded who dare to violate Cane Act.
‘Violation of Cane Act should be made cognisable offence,’ said KBP Information Secretary while reacting to the news of proposed changes in provincial Cane Act by government.
Growers in Rajan Pur, Muzaffar Garh, Bahawal Nagar, Chishtian, Bhai Pheru and Kasur are in trouble, as they are being denied the payments for over two months. So far only 20 percent payment was made and that was also at the rate of Rs100 or Rs120 par 40 kg, he claimed.
He alleged that sugar millers who were present in the ruling parties wanted amendment in the Cane Act secretly to safeguard their own interests by ignoring all the demands by the farmers and even ruling and opposition parties were united on the issues to protect their interest. KBP leader said that loot and exploitation by the sugar millers this year was on its peak as sugarcane was being procured at Rs100 per maund instead of government announced minimum price of Rs150 per maund.
He demanded the government to give Cane Procurement Receipt (CPR) a status of cheque to save the sugarcane growers from the injustices of sugar mill owners.
He regretted that growth in agricultural sector remained almost nil from 1999-2011, while in year 1949, our agriculture had a share of 53 percent in the total of GDP.
Islamic banks need to offer agri financing: SBP chief
ZAHEER ABBASI & SOHAIL SARFRAZ
FEBRUARY 29, 2012: State Bank of Pakistan (SBP) Governor Yaseen Anwar on Tuesday said Islamic banks need to offer agriculture financing to tap the huge productive potential of the sector.
Speaking as chief guest at the inaugural session of the two-day 2nd International Conference on Islamic Business (ICIB- 2012) organised by Riphah International University at National Institute of Banking & Finance (Nibaf), Governor SBP regretted that Islamic banks have not been able to come out of the conventional shadow and lack better risk management and due diligence.
Islamic banks have been working both in international and domestic market in the conventional shadow.
He said the agriculture sector and SMEs are of paramount importance for the growth but these were highly ignored, urging Islamic banks to tap huge opportunities available in the agriculture sector.
The agriculture sector is contributing 21 percent to the Gross Domestic Products (GDP) and provides 40 per cent of the employment whereas Pakistan is fifth milk producer in the world.
He said Nestle and other international companies have realised the opportunity and making investment in the dairy sector.
He said huge opportunities exist for Islamic banks in agriculture sector and they must make efforts to tap these through agriculture financing.
He said inclusive growth is beneficial only and Islamic banks are required to be more aggressive and increase their outreach beyond major cities and deplored that 70 percent of their branch network was confined to 12 major cities of the country.
He said the SBP is working to provide Islamic interbank market to Islamic banks and regulator has been taking measures to help Islamic banking in Pakistan.
He said the Islamic banking system has to come out of the conventional shadow and overcome the lack of understanding about risk management and training and capacity obstacles.
Yaseen said that Islamic banking has been growing at a very robust rate of around 30 percent for the last six years and constitutes 8.5 percent of the total deposits of banking sector.
Yaseen said over 886 branches of Islamic banks have been working in the country but the industry is still facing challenges that are required to be addressed.
The debate, he said has now started how the Islamic banking system should move towards stability.
He said Islamic finance is a profitable economic opportunity and the country is required to learn a lesson from the global financial crisis.
Yaseen said despite financial crisis, the fundamental of the economics of Western countries are very deep and it would be a misconception that their system has collapsed.
He said financial institutions have to be cautious and prepare themselves to show resilience against any sort of crisis.
Yaseen said the Islamic financing has been lacking in better risk management and due diligence and key challenge for them was their working both in international and domestic markets in conventional shadow.
He said despite all this, he was optimistic about global and domestic role of the Islamic banking and considers it most dynamic area of financial services today.
Financial and economic devastation caused by the recent financial crisis has provided further impetus to the healthy growth momentum, as the Islamic financial system is increasingly being looked at as a prudent, stable and viable alternative against the conventional system.
He said despite all the positive developments during the last decades there exist many critical issues, which needs to be addressed to sustain the growth momentum on long-term basis.
The Governor State Bank said it is very encouraging to see that Riphah International University has arranged the second International Conference to discuss the critically important issues pertaining to Islamic finance product, monetary policy in an Islamic economic system and liquidity management.
He said the State Bank, being the regulator as well as the promoter and facilitator of the industry, will look into the recommendations of the Conference for possible adoption and implementation.
He congratulated Riphah International University for organising such an important event at international level on regular basis.
USC announces cut in sugar prices
FEBRUARY 29, 2012: Utility Stores Corporation (USC) has announced to cut sugar prices by Rs 3 per kilogram aimed to provide commodity at cheap rate and increase sales.
With current decline in the sugar price, now commodity will be available at Rs 42 per kg compared to Rs 45 per kg previously on USC stores across the country.
During the first week of February, USC decided to increase price of sugar by Rs 3 to rationalise the prices in the line with current market rate, however, the practice become unsuccessful as massive decline was observed in the sales of sugar after a price hike of Rs 3 per kg.
The massive decline in the sales compelled the USC to again announce a cut in the sugar prices.
“We have received an official announcement from head office for reduction in sugar price”, said a manager of USC.
Now on all outlets of USC sugar is being sold at Rs 42 per kg, he added.
On the other hand, sugar price in the wholesale and retail market is being gradually increasing owing to expected export of sugar.
The Economic Co-ordination Committee (ECC) of cabinet has allowed sugar mills to export 0.1 million tons of sugar on the request of Pakistan Sugar Mills Association, which claimed that this year the country has an excess production of 0.6 million ton.
According to market sources during the last one week sugar price has surged by Rs 5 in the retail market.
“Sugar price was stood at Rs 45 per kilogram during the last week and now it has reached Rs 50 per kilogram”, said General Secretary, Karachi Grocers Retailers Group, Fareed Qureshi.
He said that that reasons of current hike are unknown and wholesale price of sugar is increasing daily basis.
Permission to export 0.1 million of sugar may be a reason of increase in the sugar price, he added
Ghee, cooking oil prices up by Rs 5 per kg
Ghee, cooking oil prices up by Rs 5 per kg
EBRUARY 29, 2012: The prices of ghee and cooking oil have surged by Rs 5 to Rs 180 and 200 per kg, respectively due to the suspension of edible oil supply in the wake of a strike by oil tankers association, traders said on Tuesday.
“The consumers are suffering huge price increase with uncertain future, as the stocks of ghee and cooking oil at wholesales market are near to finish anytime,” said a leading trader.
He said the retailers were facing difficulties in placing orders for the edible commodities, as black-marketing is on the rise.
