Regoverningmarkets Newsletter (Vol. 31, No. 46 October 27 – November 02, 2007)

Horticulture exports may fetch $1b Sunday, October 28,2007 DAILY TIMES

LAHORE: Linking finance to horticulture competitiveness will achieve $1 billion export by 2012, said Javed Malik, Additional Secretary Ministry of Finance on Saturday.

Chairing the 3rd meeting of the Sub-Committee for Horti-business Finance, Malik said that finance is considered as an essential but underemphasized issue in the horticulture. There is a need to develop effective policy tools to link finance to innovation and competitiveness and identify innovative projects in the horticulture sector, he added

He said at a meeting last month, the task force was informed that a few crucial steps needed to improve the financial situation of the sector.

The Task Force has been established under the auspices of the Ministry of Finance headed by Dr. Salman Shah, Advisor to the Prime Minister on Finance, Economic Affairs, Revenue and Statistics. The world horticulture market is valued at $80 billion to which Pakistan contributes $170 million annually. In Pakistan only 16% of fruits are being processed, although, this activity offers great opportunities to augment volume of value added products using modern technology.

Pakistan's horticulture export industry share in the world market has risen steadily from about 5% in 1991 to 12% in 2004. The potential markets for Pakistan's exports have been identified in Europe and the Middle East.

The Competitiveness Support Fund (CSF) was tasked by the Ministry of Finance to undertake a comprehensive study entitled "The Competitive Advantage of the Food Processing Industry: Focus on Quality, Safety and Standards." Following this study, CSF undertook more specific work on horticulture, a sub-sector of agriculture accorded national priority by the Government of Pakistan. Support for CSF is part of the $1.5 billion in aid that the US government is providing to Pakistan over five years to improve economic growth, education, health, and governance. Stakeholders including representatives of horticulture exports, senior officers of the commercial banks and the State Bank of Pakistan also attended the meeting.

Moot on seed production on Oct 30 Sunday, October 28,2007 DAILY TIMES

ISLAMABAD: The government plans to hold a one-day training programme on "seed business on small scale" at Sakardu on October 30 to help produce international quality seed, an official said here Saturday.

A Director of Federal Seed Certification and Registration Department (FSC&RD) told Daily Times that main purpose of the programme was to produce quality seeds, which not only meet domestic requirement but also export it.

Due to favourable weather condition, he said, better quality seeds of different vegetables on large scale can be produced in Sakardu, Gilgit areas. "The buffer of seed production can also be establish in these areas," he maintained.

The official claimed that the fungal and other diseases in these areas are at minimum level and seeds of different vegetables would be able to meet international quality standards. With the implementation of WTO, only certified quality of seeds and other agriculture production would be exported to European countries. To meet the international quality standards, two laboratories were established in Sakardu and Gilgit.

Seed producers, dealers, representatives of agriculture extension programme and related NGOs will also attend the training programme. The Northern Areas and AJK were specifically famous for producing quality seeds for different vegetables due to peculiar weather conditions.

He said that the Ministry of Food, Agriculture and Livestock (MINFAL) and FSC&RD has formed a programme "Establish-ment of Seed Certification System for vegetable seed production in NAs and AJK."

The official said that with the introduction of high yielding varieties of crops, increased use of chemical fertilizers and pesticides, farm mechanization, development of irrigation facilities, implementation of price, credit and other policies and support for agricultural education, research and extension has enabled agricultural production to grow at a faster rate during the last four decades.

The strong growth in the agricultural sector has enabled Pakistan to feed the growing population and to earn substantive amount of foreign exchange through exports of raw and processed agricultural products. He said that agriculture presently accounts for nearly 22 percent of the GDP and employs 45 percent of the labour force and is a source of livelihood for about two-third of our population living in rural areas.

Research on rice-like seed Sunday, October 28,2007 Sunday Times

COLOMBO: Research is to be conducted into the seed taken from the root of the Chinodorus plant to determine whether it can be made use of as a staple food, Botanical Gardens Department Director U. Dhanasekera said recently. This is a sequel to villagers in Berawila in Aranayake discovering a rice-like seed being produced in some plants growing in fish tanks and reported to be as good as our staple food rice.

These plants are said to have sprung up in one I.W.Kularatne's fish pond located in the Berawila colony. On spotting the rice-like seed Kularatne had dried the seeds and on finding it tasted like rice when cooked, had informed some agricultural institutes about it.

As the officials had cold-shouldered the matter he had contacted another official who had forwarded specimens of the seed to the Batalagoda Agro Research Institute. According to Kularatne the seeds, which can be a good substitute for rice, grow in their hundreds on a single plant.

Hundreds rally against poppy cultivation Sunday, October 28,2007 PAJHWOK

JALALABAD: Hundreds of people including tribal elders and growers rallied against poppy cultivation in the eastern Nangarhar province on Wednesday.

Participants of the peaceful rally, marching through the main bazaar of Chaparhar district, shouted through loudspeakers: We will neither plant poppies nor allow its cultivation.

The hour-long protest, which converted into a public meeting after some time, was addressed by tribal elders, who highlighted the perils of poppy plantation. They urged farmers to stop cultivating the outlawed crop.

Haji Sher Baz Khan, speaking on the occasion, accused the government of rejecting peoples genuine demands for alternative livelihood despite their willingness to cooperate with the authorities in eliminating the scourge.

All residents of Chaparhar had unanimously decided against cultivating poppies, he claimed, asking the rulers to reciprocate their gesture by helping the farmers who shunned the opium crop.

Syed Azim, another elder from the area, told Pajhwok Afghan News they had promised Provincial Council chief Fazli Hadi Shinwari they would not grow the illicit crop. Anyone breaching the vow would be turned over to the government, he warned.

For his part, Shinwari said a 50-member jirga had been constituted to ensure poppies were grown nowhere in the district. The Provincial Council head was confident the jirga would translate its pledge into action.

Mines defused: Provincial discovered and defused three landmines in the fifth police district of Jalalabad late Tuesday evening. Police spokesman Col. Abdul Ghafoor said the explosives were found near an ice factory.

India helps tame tomato prices in Pak Monday, October 29,2007 THE HINDU

NEW DELHI: While tomato prices continue to pinch Indian consumers' pockets, the exports from the country have helped reduce rates of the commodity by more than half in neighbouring Pakistan in the last ten days.

According to traders, hundreds of truckloads of tomato consignments are being sent to Pakistan since October 1 through Wagah border.

According to Pakistani media reports, tomato prices in Lahore had shot up to (INR) Rs 91 per kg on October 17. But Indian imports have brought them down to Rs 35-40 per kg.

"I have sent some consignments to Pakistan through an exporter. But most of the tomatoes, 90-95 per cent, were sent by traders of Amritsar who got the benefits because of their proximity to border," a Delhi-based tomato trader said without revealing the quantity he sold to the neighbouring state.

The demand for tomatoes in Pakistan has declined and exporters have reduced the number of consignments, he added.

Punjab Chief Minister Parkash Singh Badal flagged off the first load of tomatoes to Pakistan on October 1 at Attari check post, which contained 600 boxes of the commodity worth Rs 2 lakh exported by Narain Eximp of Amritsar. There are also some consignment of tomatoes being exported to Pakistan through railways, another trader said.

On the other hand, in the national capital region, the retail prices have been Rs 16- 20 per kg this month.

However, wholesale tomato prices here declined to Rs 13 per kg yesterday from about Rs 16 per kg ten days ago, according to Delhi Agricultural Produce Marketing Committee.

Traders said good quality tomatoes are being sold at Rs 8-9 per kg at Azadpur mandi as on today. With more arrivals from Maharashtra and Madhya Pradesh expected in the coming days, tomato prices would further come down, they added.

Growers suffer losses due to water cut Monday, October 29,2007 DAWN

DADU, Oct 28: Thousands of growers did not to cultivate cotton, wheat, vegetables and other crops and about 60,000 acres of land remained barren in Johi, Dadu, Sita, and Bhan Syedabad sub-divisions due to shortage of irrigation water in Dadu and Jamshoro districts during the current Rabi season.

In order to register their protest, a large number of farmers staged protest demonstrations in Dadu, Johi, Sita and Bhan towns on Sunday against the acute shortage of irrigation water in waterways originating from Dadu and Johi canals.

A large number of farmers of Pir Gunio waterway originating from Dadu canal held a demonstration outside the office of the executive engineer of the irrigation department of Dadu on Sunday.

Led by Nihal Khan, Khan Shaikh and Abdul Alim Shaikh, they maintained that irrigation officials were selling water to influential growers. Influential growers have illegally tampered all modules and water courses as a result of which hundreds of farmers could not cultivate cotton, wheat and other crops and vegetable.

They said they had visited the office and residence of the executive engineer of irrigation department of Dadu who refused to meet them.

Farmers fear Rs60bn cotton crisis Monday, October 29,2007 DAWN

LAHORE, Oct 28: Farmers from southern Punjab on Sunday demanded the formation of an inquiry commission to probe into what they called, an "emerging cotton crisis", which could cut the yield by two million bales, cost the nation Rs60 billion and hit textile and edible oil industries badly.

At a meeting, sponsored by the AgriForum Pakistan (AFP) here, they said "official mismanagement" regarding supply of seed and pesticides, pest scouting and replacement of cotton crop with sugarcane in the cotton belt would widen the trade deficit this year.

The management fiascos would reduce the figure by at least two million bales against a target of 14.14 million bales and the country may not go beyond 12.14 million bales, they said. The textile industry needed at least 15 million bales for its export and local requirements. The gap would be bridged by importing three million bales, they said.

The loss does not stop here but also includes two more areas; edible oil supply and livestock fodder.

The reduction in production would also reduce the supply of cotton-seed by at least 100,000 tons to the edible oil industry, they said, adding that another Rs10 billion to the import bill.

Rao Muhammad Afsar, a cotton grower from Rajanpur, said: "Plant population was low this year because of the poor quality seed. All cotton farmers have been crying about the importance and non-availability of quality seed, but in vain. Though seed crisis is not new to farmers, but its effects have been magnified by other factors like pest-attack and non-availability and high prices of pesticides.

Farmers want to buy high-quality seed if someone supplies it and only the government can ensure it, because no other agency is capable of supplying good quality seed to all farmers. If all government departments cannot ensure even supply of good quality seed, it is better to close them and subsidise farmers with saved money."

Bilal Isreal Khan, another cotton grower from southern Punjab, criticised governmental departments - Central Plant Protection and Ministry for Food, Agriculture and Livestock (Minfal) - for their poor performance. He said if these departments could not ensure on-time import of even basic pesticides, what was the good of these departments. This year, when mealy bug hit the crop, the most essential pesticides went missing, he said.

"The most tragic part of the story is that it repeats itself every year, and does so with complete impunity - with no fear of official action. For how long the government expects farmers to put up with this situation?" he questioned.

AgriForum Chairman Ibrahim Mughal said since most of the damage had been wreaked on the Punjab, which supplied 75 per cent crop, the government of Punjab should immediately form an inquiry commission to ascertain all acts of omission and commission in the crop (mis)management. Such a commission will not only find causes of this year's crisis but also alert those who can ignore the crop in future, he said.

There must be a national commission to probe into the matter, but the Punjab should take the lead, as it was the major victim, he demanded.

"The farmers belonging to the forum tried to reach some politicians but all of them seem to have got busy with forthcoming elections," he said.

No one is sparing time to listen to farmers, leave alone looking into crisis and finding solutions."

Low price creates alainchi ‘shortage' Monday, October 29,2007 THE KATHMANDU POST

SANKHUWASABHA: The availability of Alainchi (black cardamom) in local markets has nearly become nil as farmers are stockpiling their produce at homes due to depressing prices. The price of the lucrative cash crop nosedived by 50 percent this year compared to the Rs 250 per kilogram rate of last year.

Nundhaki, Tutedeurali, Shiddapokhari, Bahrabise, Chainpur, Tumlingtar, Num and Chichila, Major collection centers for black cardamom, are wearing a deserted lookthese days due to the paucity of cardamom as the farmers are just not ready to sell their produce in throw away prices.

According to Pemba Tashi Sherpa, a trader, the collection centers, which used to be crowded with buyers and sellers in this season, are deserted now. Shankhuwasaba alone produces over 2 million kilograms of cardamom every year.

Farmers alleged that brokers are behind the whooping drop in prices. "Limited middlemen are controlling the market by determining the price and offering us a lower price," said Lal Bahadur Tamang, a farmer. Farmers are demanding that the government fix a minimum support price for black cardamom for farmers to avoid exploitation by unscrupulous brokers.

Most of the cardamom produced in the eastern hill-districts of Tehrathum, Taplejunj, Bhojpur and Sankhuwasawa reaches the tarai for exports.

NA body proposes wheat support price Wednesday, October 31,2007 DAILY TIMES

ISLAMABAD: The National Assembly Standing Committee on Food, Agriculture and Livestock in its meeting on Tuesday proposed the increase in support price of wheat to Rs 550 per 40 kg. To further facilitate the farmers, the committee also recommended the provision of subsidy on DAP (di-ammonium phosphate) worth Rs 400 per 50 kg bag i.e. from Rs 1400 to Rs 1000. The committee met under the Chairmanship of Makhdoom Ahmed Alam Anwar to discuss the support price of wheat and review livestock production in the country, and forwarded its recommendations to Economic Coordination Committee (ECC). The committee discussed main reasons of wheat crisis in the country despite the surplus production claims by the government. The committee was told that the wheat produced in 2006-07 was 23.3 million tonnes. Out of which, 60 to 70 percent (13-14 million tonnes) was stored by the growers themselves for their own use, while the government had 4.5 million tonnes wheat stocks. Moreover, the flour millers have stored 1.2 million tonnes wheat and the State Bank of Pakistan financed them. Apart from it the flour millers purchased 0.8 million tonnes of wheat by themselves. The committee was further informed that in international market, the prices of maize and rice were increasing. Therefore, the feed millers had increased the use of wheat as feed for the animals, instead of rice and maize. The millers were feed 0.125 million tonnes wheat every month. The committee was informed that one million tonnes of wheat would be imported in the country in order to control the price hike of wheat and flour in the domestic market. The cost of one million tonnes of imported wheat was Rs 24 billion or $450 million. Chairman of the committee, Makhdum Ahmed Alam, said the wheat crisis in the country could be avoided simply by rationalising the support price. Former State Minister for Information Technology, Ishaq Khan Khakwani, said that the government's claim about the surplus of wheat production in 2006-07 was nothing but a false statement. He said that the support price should be fixed by the government more than Rs 500 per 40 kg because if it fixes the support price less than Rs 500 than it would have to lose a huge wheat area because due to increasing international prices of maize and sunflower, the growers would definitely prefer to grow these profit giving crops. Agricultural inputs played an important role in the crop production, Khakwani said and adding that "It is really pathetic that a DAP bag is being sold at Rs 1400 while a grower has to use two bags of DAP, two bags of Urea and one bag potash for better production".

India, EU converging on Doha trade talks Wednesday, October 31,2007 Pioneer

New Delhi :India and European Union have reached convergence on issues like market access and would find more common ground on trade matters by the end of this that could help conclude the Doha round of World Trade Organisation (WTO) talks.

"Where we are today, it is closer than ever before to closing the Doha Round," Commerce Minister Kamal Nath told industry leaders at a conference organised by US business magazine Fortune here.

The country finds much convergence with the EU on issues like opening markets for industrial products, Nath pointed out. "More convergence can be found in the next two months."

The developing countries, however, want the structural flaws to go in the WTO, he added.

Meanwhile speaking at the a luncheon meeting with leaders of Indian industry German Chancellor Angela Merkel said, "India will have a constructive role as we are working on the Doha Round." Germany is the main constituent of the 27-member trading bloc.

Merkel agreed that India needs to protect interest of its over 600 million farmers but underscored the importance of completing the Doha agreement before the US Presidential elections. Serious negotiations must start now, she said.

"If we have to start after American elections we will fail," Merkel added.

India, Brazil and other developing countries have been asking rich nations like the US and EU to cut farm subsidies, while resisting the pressure mounted by the developed nations for reducing industrial tariffs.

Farmers to get relief Wednesday, October 31,2007 THE HIMALAYAN TIMES

MADHYAPUR: The District Agricultural Office (DAO), Bhaktapur is providing relief for hailstone-affected farmers of 16 different village development committees (VDCs) of Madhyapur Thimi and Bhaktapur Municipalities. A meeting of the District Natural Disaster Rescue Committee held under the chairmanship of Dilli Prasad Adhikari, chief district officer has decided to provide the relief. According to the relief distribution programme, the hailstone-affected farmers will be provided seeds of winter vegetables worth around Rs 2,00,000 and wheat seeds worth Rs 50,000, Dhirendra Kumar Karki, said senior agriculture development officer.

Lanka-bound rice waiting for Indian nod Thursday, November 01,2007Daily Mirror

COLOMBO: Nearly 6000 tons of Ponni Samba rice ordered by private traders from India with the government's approval have been held back in the Tutikorin and Chennai harbours, the Wholesale Traders and Essential Commodities Importers' Association said. This situation has arisen as a result of a total ban imposed by the Indian government on rice exports. Twenty traders of the Pettah Whole sale Traders' Association have ordered nearly 6000 metric tons of rice on the tax concession granted by the government and the Indian government has imposed the ban when rice stocks were brought to the Chennai and Tutikorin harbours to be loaded into ships, Whole sale Trader Association media Secretary Hemaka Fernando said. He added that Sri Lankan and Indian authorities are now engaged in discussions to get the rice stacks released.

Fertiliser crisis hits potato farming Friday, November 02,2007 NEW AGE

MANIKGUNJ: Farmers fear drastic fall in production of potato in Ghior upazila under Manikganj this year as many of them are yet to start cultivation of the cash crop due to acute fertiliser crisis.

‘We can not start cultivation of potato on our lands due to fertiliser crisis when peak time for potato farming is nearing end,' some farmers said.

They also apprehend a loss of Tk 20 crore if the authorities fail to ensure adequate supply of fertiliser to the potato farmers in Ghior sadar unon.

Farmers at some villages under the union while talking to this correspondent expressed their worries about fertilizer crisis.

The aggrieved farmers said they used to cultivate potato on their lands every year as they find potato cultivation more profitable than other crops.

There are over 100 potato farmers in the villages under the sadar union and they cultivate potato on at least 1,000 acres of land every year, the farmers said.

They said that around 2.5 lakh mound ((a maund equilavent to 37. 3242 kilograms) potato was sold in Tk 20 core in last year. They are now apprehending loss of Tk 20 crore for the crisis of fertiliser.

Some farmers at Mailagi village under the union said sub-assistant officer of the Agriculture Extension Department, Rokeya Begum, along with fertiliser dealers came to their village on Wednesday to distribute fertiliser but they were forced to return as the amount of fertiliser they brought was very small against the demand.

The authorities brought only 200 sacks of fertiliser against the demand for 600 sacks. The authorities, however, assured the farmers of providing them with required amount of fertiliser soon.

KM Akter Hossain Babul, a farmer at village Boilot, said there are 10 farmers who cultivate potato on at least 50-60 bighas of land each.

Besides, some 50 small farmers cultivate potato on 5-6 bighas of land, he added.

Potato is cultivated on at least 800 acres of land in the Ghior sadar union every year, he said adding last year around 2,40,000 maund potato of worth about Tk 19.20 crore was produced here.

Babul said he planned to cultivate potato on 30 bighas of land this year. ‘But fertiliser crisis has puts me in uncertainty over potato cultivation.'

‘Las year I earned Tk 10 lakh by cultivating 22 bighas of land,' he mentioned.

A good many farmers also alleged that some dealers are selling fertiliser at higher prices against the government rate.

They sought intervention of the agriculture adviser to the caretaker government in immediately easing the fertiliser crisis.

When contacted, deputy commissioner of Manikganj, Ataur Rahman, said there is no urea crisis in the district.

Fertiliser distribution management is good and there will not be any problem, he added.

Ilam tea farmers going organic Friday, November 02,2007 THE KATHMANDU POST

ILAM: After the use of pesticides threatened Nepali tea from losing international markets, farmers of Eastern Antu and Samalbung are switching to organic tea farming.

Some seven hundred tea farmers of the two VDCs have entered in an agreement with an organic drugs manufacturer of Bangalore, India to push ahead their fresh initiatives.

The company has also claimed that tea produced in the areas would be completely shifted into organic tea in two years if the farmers followed its instructions without fail.

"The company will extend the necessary technical services to farmers and also provide them with fertilizers and medicines to be used in their farms," said NB Kabir, manager of Multiplex Company.

Talking to the Post, farmers also said that the company would also conduct soil tests and recommend them on medicines to be used in the plantation.

The farmers and the company have joined hands after a team of the company, led by Kabir, visited the district, observed the tea plantations and interacted with the farmers.

The company had first approached the farmers for the tie-up, according to farmers. Kabir, who also teaches at a university in West Bengal, conducting special classes on tea, said the products of the company have proved highly beneficial for plantation in hilly terrains.

Citing that tea offers high economic opportunities for farmers in Nepal, he said there was a need of appropriate and specialized technology and technical knowledge among producers to take benefits from it.

Tea factories of Shree Antu have also lauded the initiatives of the farmers and have come forward to support them.

"We have already expressed our willingness to extend technical support and offered them to pay an additional rupee per kilogram for the tea produced under the new initiatives," said Hari Timsina of Ilam Tea Producers Association.

With additional prices for tea, he expressed hope more farmers would be encouraged to go organic.

Farmers of the area took up the new initiatives after their previous initiatives to go organic took a toll on the volume of production.

"The company has also committed to extend 25 percent discount on medicines to the farmers," said Tilak Aryal, a farmer. He added that the company was also providing life insurance coverage of Rs 25,000 to each of the farmers upon acquisition of farmers' membership by paying Rs 160.

Farmers, processors and traders of Ilam of late, have been taking initiatives to shift to organic tea farming after use of excessive pesticides posed problems in making sound impression on the importing countries.