Regoverningmarkets.org South Asia Newsletter (Vol. 21, No. 36 August 18 - August 24, 2007)

Govt enhances farmers borrowing capacity Saturday, August 18,2007 THE NEWS

SLAMABAD: In a massive relief to farmers' community across the country, the government has increased the value of Produce Index Unit (PIU) of agricultural land from Rs 400 to Rs 1,200.

The step will augment the growers' borrowing capacity by two times, said Dr Ashfaque Hasan Khan, special finance secretary while briefing the media after a meeting of the Economic Coordination Committee here on Friday with Prime Minister Shaukat Aziz in the chair.

The ECC accorded approval to the longstanding demand of growers holding agricultural lands. They were seeking a massive increase in the PIU, which is vital to evaluate their lands on which farmers seek bank loans.

The approval for a 200 per cent increase in the PIU would now enable farmers to borrow more loans from banks and to invest maximum for increasing the yield. In 1989, the PIU was increased from Rs 200 to Rs 400, which was why the capacity to borrow loans from the banks could not increase for the last 18 years.

The current measure would help the government bring a green revolution in the country. However, some experts are of the view that big landlords would take advantage of the decision through massive borrowings from banks. In the past, big guns took huge agricultural loans and managed to get them written off.

Dr Khan said the issue of the Liquefied Petroleum Gas producers' price policy was also discussed in the ECC meeting for more than an hour and it was found that the language used in the summary of the Ministry of Petroleum and Natural Resources was confusing, which led to the postponement of its approval.

Now the Energy Task force would further work on it and remove the objections to the language used in the summary before it would be accorded approval. However, in the summary it was suggested to clip the power of Oil and Gas Regulatory Authority (Ogra), the only watchdog in petroleum industry. The LPG producers were suggested to be allowed to fix their prices on their own on a monthly basis.

In addition, the ECC also extended three percent subsidy on the interest rate for the borrowings which the spinning and textile industry had taken from the banks from July 1, 2003, to June 30, 2007. Owing to this subsidy, the government will have to sustain a financial jerk of about a billion rupees. Dr Khan said the ECC also approved the allocation of an additional Rs 500 million for textile city in Karachi as equity share of the government of Pakistan.

He told reporters that the total paid up capital of the textile city was Rs 1.1 billion. The government has contributed Rs 500 million, the government of Sindh and the Port Qasim Authority have contributed Rs 100 million each while the contribution of PIDE, EPZA, National Bank of Pakistan, Pak Oman, Pak Kuwait, Saudi Pak, PICIC and Pak Libya is Rs 50 million each in the textile city.

At the moment, Dr Khan said, the Textile City Company is facing liquidity crunch, that's why the government has decided to inject Rs 500 million, equivalent to its equity share in the initial paid up capital. He said the ECC was informed that the country's reserves had increased to $15.8 billion, which were sufficient for the imports of seven and half months.

The FBR collected taxes worth Rs 49.7 billion in the month of July against the target of Rs 42.6 billion, he said, adding that the government had prepared Ramzan relief packages, which would be announced on Wednesday after the cabinet meeting.

Talking about the wheat stock, Dr Khan said the government has a stock of 4.723 million tonnes of wheat, including 2.65 million tonnes of Punjab, 0.61 million tonnes of Sindh, 88,500 tonnes of the NWFP and 34,228 tonnes Balochistan.

DAE forecasts post-flooding crop bonanza Saturday, August 18,2007 NEW AGE

DHAKA: Two departments under the agricultural ministry hope that the ongoing floods will result in bumper production of all agricultural products in the coming seasons if drought does not hit the country generally.

The Department of Agricultural Extension and the Soil Resource Development Institute also predict that the use of fertiliser in the coming years should be reduced considerably as layers of fine alluvial sediments have deposited on the cultivable lands inundated by the floodwaters of late.

Officials said the production of fish in open and natural water bodies will also increase, meeting the protein demands of the people, especially the poorer section.

‘We have got reports from the field level that on an average a two-inch thick fine sediments have deposited on lands inundated by the floodwaters in the Sirajganj area. This silt deposition will bring forth bumper production of all agricultural products, including rice and vegetables,' Dr Shahidul Islam, director of field service wing of the DAE told the news agency Wednesday.

He said the use of fertilisers must come down to a great extent through out at least the next two seasons as on an average, all the inundated lands got at least one-inch thick layer of alluvial fine sediment. But he could not give an instant estimation as to how much fertiliser would be saved in the process.

According to the DAE, the farmers use about 27 lakh tones of urea fertiliser alone annually.

‘Most of our farmers do not apply fertilisers as per DAE suggestions. They possess the traditional knowledge that flood sediments increase fertility and so, apply fertilisers accordingly. Therefore, it is not possible to predict how much fertilisers can be saved through the forthcoming seasons,' Islam said.

A Principal Scientific Officer of the SRDI Md Kabil Hossain Dewan agreed with the director and told the news agency Wednesday, ‘The flooding is like bathing of soil using nutritive elements.'

‘The floodwaters will wash away all the chemical ingredients and insecticides used in the field. So, we can expect a bumper yield of all agricultural products,' Dewan said.

‘One of the main causes of low agricultural production here is that our farmers do not use balanced fertilisers. The alluvial sediments brought in by the floodwaters help strike a balance in the use of fertiliser and manure,' Anil Chandra Sarker, a deputy director of the DAE told the news agency Wednesday.

Since most ponds and lakes were inundated by the floodwaters, fish production in the coming seasons was also expected to be much higher, said Sarkar.

According to the DAE estimates, the 2007 floods inundated about 16.25 lakh acres of land under 262 upzillas in 39 districts, of which crops on 11.42 lakh acres have been totally destroyed by the floodwaters.

Farm tech extension project stagnant Saturday, August 18,2007 NEW AGE

DHAKA: Extension of agriculture technology through mechanisation of water management, aiming to reduce farm output costs, remains stagnant at the field level due to inadequate allocation of funds and shortage of manpower.

Efficient water management technology along with farm mechanisation will reduce the production cost and crop wastage and make the sector commercially viable, agriculturists believe.

Irrigation cost in Bangladesh is one of the highest in the region and a major head of expenditures, which, coupled with erratic supply and high prices of fertilisers, have made farming less rewarding. High prices of diesel, which propels more than 80 per cent irrigation pumps due to negligible electricity coverage in rural areas, remain a headache for farmers.

Agriculturists suggest adequate farm and irrigation technologies can help farmers lessen the costs. Quoting a study conducted by the Centre for Policy Dialogue in 2003, Dr Sirajul Islam, head of Institute of Water Management under Bangladesh Agricultural Research Institute, said irrigation cost in India is only $25.58 per hectare of land, which is $17.94 in Thailand and $17.98 in Vietnam, while in Bangladesh it is as high as $117.60.

Agriculturists questioned the government's sincerity in raising the monetary allocation for popularising agricultural machines among farmers. Inadequate manpower at the upazila level has made it difficult, if not impossible, to make the available modern technologies accessible to farmers.

Lack of coordination among different agricultural agencies is also blamed for slow progress in transfer of farm and irrigation technologies at the field level, said Eftekharul Alam, assistant chief engineer (irrigation).

The official emphasised the need for coordination between the Department of Agricultural Extension and the Bangladesh Agricultural Development Corporation, which have at least forty-six years' experience in minor irrigation and on-farm water technology.

To accelerate use of farm technologies by farmers, the government launched a project a couple of years back, which has been stymied due to poor allocation and shortage of engineers, extension officials said.

The project aims at reaching the complete set of farm machinery-power tillers, seeders, weeders, sprayers, self-propelled reapers, reapers operated by power tillers, power threshers for rice and maize, power winnowers and driers- to farmers in each upazila.

But market prices of farm machines are almost double the allocations made by the government under the project, leading to poor introduction of modern technologies to the field level growers, officials added.

The market price of a seeder is Tk 4,000, but the government allocation is only Tk 2,000, while a sprayer costs Tk 8,000 against the allocation of Tk 4,000. Price of a self propelled reaper is Tk 75,000, while the government allocates Tk 55,000.

The project has only 99 agricultural engineers out of approved posts for 112, who are supposed to work at the field level under the guidance of the upazila agriculture officers.

‘We could complete only one-fourth of the total activities in last two years since the project was initiated in May 2005,' said engineer Mohammad Emdadul Haque, director of the project, titled ‘enhancement of agricultural production and rural employment through extension of agricultural engineering technologies.'

Recruitment of some 16, including nine agricultural engineers, is now under process after the approval from the Ministry of Agriculture, the project director added.

The Tk 53 crore project is being implemented in 112 upazilas of 56 districts and it will run until June 2010.

Govt plans to arrest poppy growers Saturday, August 18,2007 PAJHWAK

KABUL: The government is planning to arrest landlords who are cultivating poppies on their farms. Gen. Dawood Dawood, Deputy Interior Minister, Thursday told a news conference that action would be initiated against landowners who were encouraging poppy cultivation on their farms through tenants or other means. He said the plan was part of the ministry's efforts to eliminate poppies in the country. "I reject the assumption that most of farmers grow poppies due to widespread poverty in the country."

The minister said not a single plant was grown in the country's poorest provinces of Maidan-Wardak, Kapisa, Panjshir, Paktia and Paktika this year.

Instead, he said, those people were growing poppies who wanted to become rich overnight. "We planned to arrest those landlords who plant poppies on their farms to get greater and rapid income."

The fresh warning by the minister came on the heel of a statement by Christina Oguz of the United Nations Office for Drugs and Crimes (UNODC) who informed about substantial increase in poppy production in Afghanistan this year.

Addressing the news conference, UNODC official Christina Oguz blamed police for taking money from drug traffickers. Terrorists were taking advantage of the drug income, she observed.

Maya for pvt investment in agriculture Monday, August 20,2007 Indian Express

LUCKNOW: Ram Saran Verma in Daulatpur village of Barabanki district has won national awards for his innovations in agriculture. His expertise in cultivating bananas, tomatoes and potatoes has made him one of the richest farmers in the entire state. Yet he had to throw away 50 crates of premium tomatoes this season, despite having the money, trucks and contacts to sell them.

"There comes a time, when it is more economical to let the tomatoes rot in the field rather than transport them to a mandi," he explains, sitting in his village connected by a dirt road to the Lucknow highway. Barely 40 km away, the Mayawati government has signed an ordinance that may transform this business of agriculture which makes Verma consider his loss as fait accompli. In a leap of faith, she has not just amended the Agriculture Produce Marketing Committee Act - which bans private companies from buying directly from farmers - but has also gone several steps further to facilitate private investment in agriculture.

"There was a pressing need to bring this policy. Despite several favourable climatic conditions, UP continues to stagnate. The total arrival in mandis is just 20-25 per cent of the produce. There has been no significant investment in agriculture in the last few years for 91 per cent marginal farmers of the state," said Shashank Shekhar Singh, state Cabinet Secretary.

The government is clearly thinking big: the move is meant for investors whose minimum networth is Rs 500 crore and are willing to invest Rs 5,000 crore in the next three years. A committee has already been set up to evaluate Expression of Interest, which would detail their business plans that may include buying, packaging, processing and selling agri products in retail stores. Verma's tomatoes need not rot if there is a processing plant in the vicinity or a refrigerated van to transport them to another market. It would also give more options to the farmers in Samaisi, heart of the okra-growing belt of UP, where the prices plummetted to Rs 1-2 per kg towards the end of the four-month season. This is the way it has been for the last 60 years. But the government hopes to change things with its bid to attract private investment by charting a course which includes:

 Unified approvals: The companies would be allowed to purchase within the entire state without obtaining separate licenses from each area.

 Single window clearance: The companies would be allowed to deposit market fee/ cess in selected mandi of their choice instead of going to several mandis.

 Investors would be allowed to bulk purchase from farmers, store and set up retail chains.

 The government would consider exemption on purchase of more than 12.5 acres of land in the state, as per provisions of the land ceiling act.

 Promises to link villages by roads, power supply and irrigation on a priority basis for the area of operation.

The government is already preparing a model agreement to be signed between the farmer and the investor. Besides providing seeds and other inputs to the farmers, the latter is expected to pitch in with microfinance and insurance, thereby reducing the farmers' risk factor.

"While attracting investors, we have also kept in mind the interest of farmers," explained Arjun Abhijat, director, Mandi Parishad. They would have the freedom to sell the produce in the open market if the market price is more. The investor has to pay the farmer on the spot. The companies are required to submit daily details of their transaction with the farmers on the website of the Mandi Parishad.

A dispute redressal system has been set up at the state as well as district level. "In no way is a farmer's ownership of his land threatened even if there are disputes with the company," said Abhijat.

Some states who earlier trod this reform path have seen massive opposition from the mandis, which feared loss of revenue once their monopoly was gone. In this case, the UP government has been able to convince their Mandi Board.

"They will not only get additional revenue but will get to act as regulators in the new system," said Abhijat. The market for agri-produce, which is currently Rs 25,000 crore, is estimated to increase to Rs 65,000 crore. Meanwhile, the investors are waiting and watching. "It is the implementation on the ground that will matter," said a Reliance executive.

Marketing promotes potato production Monday, August 20,2007BBS

THIMPHU: Potato production in the six eastern Dzongkhags has improved in the recent years.The enhanced production has been due mainly to the assistance provided by the regional agriculture marketing services in Gyelposhing. The assistance has enabled the farmers to market their potato crop encouraging more farmers to take up potato production.

Established last year, the regional agriculture marketing services supports farmers in production, grading and packaging.

It also helps farmers to market potatoes at the auction yard in Samdrupjongkhar. Farmers told our reporter that improved production they have been able to fetch higher price.

This they said has helped enhance their income.

Potato is one of the main cash crops of the farmers in the six eastern Dzongkhags. In recent years potato production has increased. It has emerged as one of the most lucrative business for farmers.

Rice OMS to start with frail stock Tuesday, August 21,2007 NEW AGE

DHAKA: The government will begin open market sales of rice on September 10 with a shortfall of 3.28 lakh tonnes of food-grain in the buffer stock.

The latest official figures reveal that the buffer stock is only 6.72 lakh tonnes of food-grain, but the stock should be 10 lakh tonnes for ensuring national food security.

The Food Planning and Monitoring Committee, at a meeting on Monday, raised the price of rice in its open market sale centres to Tk 19 a kilogram from Tk 15, but reduced the quantity of rice per buyer to three kilograms each time from five kg earlier.

‘We have taken the decision after thoroughly reviewing its probable consequences. We want to stop misuse of open market sale by reducing the quantity for each buyer,' said the committee's chief and food adviser Tapan Chowdhury.

He also ruled out the possibility of any food crisis, terming the government's stock sufficient to face the current situation.

‘We have enough stock of food to face the situation,' the food secretary Dhiraj Malakar, claimed after the meeting, which was also attended by the Finance Adviser, AB Mirza Azizul Islam.

Besides open market sales, the government used to run social safety net programmes such as ‘vulnerable group feeding' and ‘food for work' to ensure the people's access to food.

The government's food policy considers any quantum of food stock below the eight-lakh-tonne-mark as ‘dangerous', and a buffer stock of 10 lakh tonnes of food-grains is considered the standard requirement for meeting the food needs of the people at any time.

According to Tapan Chowdhury's calculation, the government has a rice stock of 5.93 lakh tonnes and wheat stock of 1.22 lakh tonnes. He assured the media that more food-grain was in the pipeline, including 98,000 tonnes now being purchased through two tenders.

The latest official figures reveal that the buffer stock is only 6.72 lakh tonnes of food-grain.

‘The government has decided to import 4.5 lakh tonnes of food-grain, of which 3.2 lakh tonnes of rice are under the process of tender,' said the food adviser.

The open market sale of rice, meant to keep the price of the staple food stable, will continue till the last day of Ramadan, and the buyers will be able to purchase rice from the sales centres on every alternate day.

Some 15,000 dealers will sell rice under the programme all over the country, and the Bangladesh Rifles will sell rice from at 500 outlets, mostly in the urban areas. A total of 1.18 lakh tonnes of rice is planned to be sold under the programme.

The price at the dealers' level is Tk 18 per kg. The measures, recommended by the food monitoring committee, need to be approved by Chief

Adviser Fakhruddin Ahmed, said officials.

Despite the increase in the price of rice, the food adviser expressed optimism that the price would not rise any further in the coming days, particularly in Ramadan.

The government is trying to increase its food stock by importing food-grain as domestic procurement has fallen far short of the target.

The government could purchase only 6.11 tonnes of rice, at a rate of Tk 18 per kg, during the ongoing Boro procurement drive, though the target was 12 lakh tonnes.

The government on Sunday began the vulnerable group feeding programme in 12 districts, said the food secretary.

The food adviser added that the programme would start in full swing on September 22.

South Asia's vegetable oil demand up Friday, August 24,2007 DAILY TIMES

NEW DELHI: South Asia's demand for vegetable oils is expected to surge as much as 10 percent in the new oil year and outstrip production, but rising global prices may crimp imports as poor consumers switch to cheaper home-grown oils.

Analysts said India's demand for oils in the oil year beginning October could grow 10 percent, while neighbouring Bangladesh and Pakistan may witness a 5-10 percent jump.

But they added that high prices of palm and soy oils will be a deterrent and may force low-end consumers in these developing countries to switch to cheaper domestic oils, such as cottonseed. "High prices of oils are not sustainable in South Asia and will definitely affect demand," said Shardul Sharma, an analyst with Sharekhan Commodities, a brokerage.

"A 25-30 percent price increase over the last year has led to a five percent fall in demand (for imported oils)."

Despite firm prices, import demand in Asia has been high in recent months as buyers in the Middle East and China have locked in supplies for the Muslim holy month of Ramadan and the Chinese mid-Autumn festival, both due in September.

But analysts said the scenario could be different in South Asia, where about a quarter of the population earns less than a dollar a day and high prices would limit buying. Soyoil prices on the Chicago Board of Trade hit 23-year highs early this year, benefiting from surging demand.

Palm oil futures on the Bursa Malaysia Derivatives Exchange hit an historic high of 2,764 ringgit ($799) a tonne in early June though have dropped 13 percent since then.

But they are still 26 percent up this year and well within the sight of June's figure, helped by soaring demand for palm oil from sectors, such as manufactured foods and bio-diesel.

Massive bio-diesel manufacturing capacities have been installed the world over. The United States is producing the alternative fuel from soybean oil, the European Union from rapeseed oil, and Malaysia and Indonesia from palm oil.

Duty cuts: Leading analyst Dorab Mistry told a conference in Singapore this month that vegetable oil imports by India in the year to October 2007 are likely to be 600,000 tonnes lower from earlier estimates at around 5.8 million tonnes due to high prices.

Big retailers asked to close shop in UP Friday, August 24,2007 Hindustan Times

India, the world's second-largest edible oil importer after China, mainly buys palm oil from Malaysia and Indonesia and soy oil from Brazil and Argentina.

In the last six months, India has on several occasions revised downwards import duties on palm oils to fight rising prices, but with little success. "We fear that we may not be able to control the landed cost of imported oils even by bringing the duty to zero level due to mushrooming growth in bio-diesel capacities," said AR Sharma, president of the Solvent Extractors' Association of India.

Apart from the size of domestic crops in India, Pakistan and Bangladesh, the crucial factor determining demand will be prices of palm and soy oils, said G. Chandrasekhar, commodities editor at the Hindu Business Line newspaper.

"If palm or soy prices remain high, these countries will be forced to import less and high prices look inevitable because of usage for bio-diesel," he said.

Industry officials said prospects of a good oilseed harvest in the winter due to well spread rains and greater acreage could also trim Indian vegetable oil imports in the new season by about 300,000 tonnes. "Prices of soy and palm will be steady-to-firm because soy, sunflower and rapeseed crops will be less and there will be some reduction in demand due to high prices," said Govindhbhai Patel, an oils trader in groundnut-growing Gujarat state.

But BV Mehta, an official of the Solvent Extractors' Association, said that despite a higher winter crop, dependence on imports would be inevitable as domestic soybean, the key oilseed, yields only 18 percent oils. Sharma said India could contain imports to reasonable levels in the current season because of good carryover stocks of rapeseed but these would be exhausted in the new season.

Traders said Pakistan's edible oil purchases could rise only marginally to 1.8 million tonnes in 2007, from 1.6 million tonnes a year ago, despite an expanding economy and rising consumption.

In neighbouring Bangladesh, consumers have started feeling the pinch of high prices of essential commodities, including oils, which have mainly been pushed up by soaring prices in international markets. Reuters

Big retailers asked to close shop in UP Friday, August 24,2007 Hindustan Times

LUCKNOW: The Mayawati Government on Thursday withdrew its controversial agriculture development and investment policy incorporating contract farming. The government also ordered the closure of Reliance Fresh and other similar stores in UP because of law and order problem.

Chief Minister Mayawati told journalists after Cabinet meeting that agriculture policy that was announced on August 3, 2007 had been withdrawn following intelligence report against it.

Mayawati said following law and order problem in Lucknow and Varanasi on the inauguration of Reliance Fresh (Mukesh Ambani group) stores on August 22, the district magistrates had ordered for their closure. The chief minister has constituted a high level committee headed by Cabinet Secretary Shashank Shekhar Singh to review all aspects of such stores and report to the government within one month.

On withdrawal of contentious farm policy the chief minister said that "intelligence report gathered from 70 districts indicated that 60 per cent farmers were against it".

The government had drawn flak from the Opposition and the farmers over the provision of contract farming under the new policy. "The government is committed to protect the interest of farmers thus policy has been shelved", Mayawati said.

The chief minister said the government had mooted the voluntary farm policy for the welfare of the farmers. "I had earlier clarified the apprehensions of the farmers on the issue", she said and added "after serious reconsideration and intelligence report the government has scrapped the policy".

On Reliance Fresh, Mayawati said a committee consisting of principal secretaries of Home, Housing, Agriculture, Health and Urban development had been constituted to study law and order, licensing, health, sanitation, location and other issues. The government would thus come out with a policy on such stores, she said.

Reliance Fresh had opened its stores in Lucknow and Varanasi on August 22 that attracted wrath of the people. There was large-scale violence in the two cities. The Samajwadi Party MP and trading community leader Banwarilal Kanchal led mob in Lucknow to attack Reliance Fresh stores on Wednesday.

The chief minister said immediate reason for the closure of these stores was law and order.

The Chief Minister's Principal Secretary Shailesh Krishna said other Malls would not come under the purview of the committee. "The decision is for these specific stores for particular purpose", Krishna said and added there was so far no policy for such projects.

The chief minister said some ministers also informed that Opposition had been spreading "rumour" about the amendment in Land Ceiling Act to reduce the minimum ceiling on land. "There is no base in the report", she said.

Edible oil production witnesses increase Friday, August 24,2007 THE NATION

ISLAMABAD: Nominal increase was witnessed in the country's edible oil production during the last Financial Year (FY) over the FY 2005-06, as the oil production increased from 0.793 million tonnes to 0.855 million tonnes respectively, official sources said.

The production of cottonseed oil was increased to 0.478 million tonnes from 0.456 million tonnes, figures compiled by Pakistan Oilseed Development Board (PODB) revealed. The production of Rapeseed/Mustured oil was enhanced from 59000 tonnes to 63000 in the period under review while the sunflower oil production increased up to 0.249 million tonnes from 0.22 tonnes in 2005-06.

Canola oil production in FY 2005-06 was 58000 tonnes, which was enhanced to 65000 tonnes in 2006-07 FY. According to PODB, total land under cultivation of cottonseed crop was reduced from 7.66 million acres in 2005 to 7.599 million acres in the outgoing FY.

Similarly, rapeseed/mustered cultivation land was enhanced from 0.578 million acres to 0.628 million acres while sunflower cultivation was enhanced from 0.875 million acres to 0.937 million acres during the period under review.

Canola cultivation was increased from 0.323 million acres in 2005-06 to 0.359 million acres in 2006-07. Sources in the agriculture ministry said that Pakistan had potential for producing oilseed crops and reduce the imports to save huge amount as the edible oil is one of the largest imports of the country.

It may be recalled that Pakistan imported 1.6 million tons of palm oil costing around $ 1 billion during the last fiscal year to cater to the domestic needs, which is 26 per cent more in comparison with oil imports in FY 2005-06. The palm oil was imported from the markets of Malaysia and Indonesia at an average price of $675 per ton.

Farmers rally for urea in Jhenaidah Friday, August 24,2007
NEW AGE

JHENAIDAH: About 300 farmers went out on demonstrations on Thursday near the office of the upazila nirbahi officer at Kaliganj in Jhenaidah demanding adequate and timely supply of urea.

The officer, Sushanta Shekhar Bhoumik, said the farmers of Shimla-Rukanpur and Sundar-pur-Durgapur unions reached the place at about 10:00am and stayed for a few minutes.

They went back as the were assured of adequate supply of urea in September from the office, he said.

50% difference in prices found Thursday, August 23,2007 NATION

DHAKA: Consumers Association of Bangladesh (CAB) in a week long survey found about fifty percent differences between the wholesale and retail prices of commodities in Barisal markets and highest gaps were found in the prices of vegetables.

The survey report revealed by CAB Barisal branch on Thursday claimed the situation was created due to failure of government in monitoring supply and sale of commodities and lack of control over marketing without following any guideline.

CAB said in wholesale and retail markets average 48.78 percent gaps were found in the prices of vegetables.

The differences were 11.26 percent in rice markets, 13 percent in the pulse market, and 4.42 percent in the edible oil market, 20.74 percent in the onion and garlic market, 39.56 percent in the salt market

However, prices of all commodities except the sugar, soap, salt, betel leaf, betel nut, were increasing while the price of green peeper decreased, the report added.

In the report it was quoted that prices of per kilogram potato in wholesale market was 17.75 taka which was Tk.20 in retail market Patol was Tk. 26 in whole sale and Tk. 23 in retail, papaya Tk.6 and Tk.10, ladies finger Tk. 16 and Tk.24, Barboti Tk.15 and Tk.21,Karolla Tk. 23 and Tk.28, brinjal Tk.22 and Tk.29, Lau Shak Tk.6 and Tk.10 ,green peeper Tk.100 and Tk.135 and lemon per piecesTk.0.75 and Tk.1.5 in whole sale and retail markets.

Reviving pashmina's lost glory Friday, August 24,2007 THE HIMALAYAN TIMES

LALITPUR: The lost glory of Nepali Pashmina could be retained, if quality raw materials are used and product marketing is done using a specific trademark, a study report said.

The study jointly conducted by the International Trade Centre (ITC), UNCTAD and Trade and Export Promotion Centre (TEPC) states that the development of the Pashmina industry remained idle due to lack of essential physical infrastructures in Nepal.

The major findings of the report were made public today at a programme ‘Export Trade and Development of Nepali Pashmina'.

Murari Prasad Gautam, advisor of TEPC and national consultant said export of Nepali pashmina could increase if a trademark or label is applied on the products.

"The main problems hurting Nepali pashmina export are the lack of proper spinning mills, well-equipped laboratories, label or trademark, unattractive packaging and others," he said.

The pashmina industry would thrive in Nepal if a well-equipped laboratory is set up to test raw materials for pashimna and if the technology of the pashmina production is developed and producers are given training.

Shankar Prasad Pandey, president of Nepal Pashmina Industry Association, said

the government should create a favourable environment to increase investment on the industry.

Corn damages hundreds acres of maize Friday, August 24,2007 BBS

TRASHIGANG: In Trashigang, the maize production this year may fall by as much as 50% compared to the previous years. Maize is the one of the main crops in the Dzongkhag.

Agriculture officials attributed the fall to northern corn blight a disease which affects maize. They said farmers in the dzongkhag have lost hundreds of acres of maize to corn blight.

Large tracts of maize have also been damaged by wild boars. In Uzorong and Thrimshing Gewogs, about 30 to 50 acres of maize have been destroyed by wild boars.

Corn blight has affected more than 600 acres of maize in Shongphu and around 200 hundred acres of maize in Yangneer Gewog.

The Dzongkhag Agriculture Officer Dendup Dukpa said the actual damage could be more. He said they have not received reports from all the gewogs.

Our reporter Tenzin Namgyel says there were also reports of crops being ravaged by rats in Kanglung.

The village heads, the Gups, told BBS that this is not the first time that they have lost their crops to wild boars and corn blight. They said they have reported the matter to the concerned authorities in the past but they have not received any sort of compensation.

Agriculture officials said they provide improved seeds and pesticides. They said in the absence of crop insurance scheme, they can't do anything about compensation.

According to records maintained by the District Agriculture Office, Trashigang farmers harvested about 14,000 metric tones of maize last year.

Wheat production hits record high Friday, August 24,2007 PAJHWOK

TALUQAN: Wheat production remained at record high in the northern Takhar province during the current year, officials said on Wednesday.

Deputy head of the agriculture department Abdul Saboor Karimi told Pajhwok Afghan News the remarkable increase was the outcome of timely and sufficient rains and provision of improved seeds to the farmers.

The province had 73,000 hectares of irrigated and 190,000 hectares of rain-fed land. During the current year, Karimi said, 43,898 hectares of the irrigated and 96,550 hectares of the rain-fed land was cultivated with wheat crop.

Each hectare of the irrigated land yielded 560 to 770 kilograms and each hectare of rain-fed land produced 210 to 280 kilograms of wheat this year as compare to the last year of 490 to 630 kilograms and 140 to 170 kilograms respectively, he informed.

Karimi attributed the boost in wheat yield to timely and ample rains, provision of improved and best quality seeds and proper training for farmers.

Feroz Muhammad, 56, a farmer in Dasht-i-Qala district of Takhar province, said he had collected 480 kilograms of yield from each acre of land this fall. "Farmers would stop growing poppies if they get as much wheat each year," said Feroz.

Moinuddin Aini, head of the agriculture department, said 90 percent of people in Takhar were farmers while 40 percent of the province's revenues being generated from agriculture.

Muhammad Sharif Sharif, Deputy Minister for Agriculture, said wheat production during the current year had been estimated at 5.85 million tons. Earlier, the Food and Agriculture Organization (FAO), in its report, had said Afghanistan was nearing self-sufficiency in grain production. The country is mostly depended on grain imports from Pakistan for its domestic requirements.