Regoverning Markets (www.regoverningmarkets.org [1]) is a global research and policy support programme that aims to advice public and private sector organizations on approaches that can anticipate and manage the impacts that dynamic changes in local and regional agri-food markets are having on small-scale producers.

This weekly newsletter gives you news stories appearing in the newspapers in the 7 South Asian Countries that are members of South Asian Association for Regional Cooperation (SAARC). This is purely for academic purposes and any citation should be referred to original sources.

Wheat, firewood prices soar in Kabul Saturday, December 08,2007 PAJHWOK [2]

KABUL: Wheat and firewood rates registered an increase during the outgoing week in Kabul, with traders linking the price hike to higher demand for solid fuel, driven by cold weather, and the levy of a new tax by the Pakistani government on wheat exports.

Shopkeeper Khan Ali told Pajhwok Afghan News the price of a 100-kilo wheat bag jumped from 2,000 afghanis in the pervious week to 2,280 afghanis this week. He cited the imposition of fresh duty on wheat exports by Islamabad as a major cause of the increase.

Eng. Shafi, head of the foodstuff traders' union, revealed the Pakistan government had levied a 30 percent tax on wheat exports. The prices of eatables have generally maintained an upward trend in the country during the current year.

Subsequently, businessmen and government representatives came to the negotiating table and decided on bulk imports of food items to build up enough stocks and thereby keep prices in check.

But during the outgoing week, the wheat price went up - much to the chagrin of consumers. The rates of rice, cooking oil, sugar, green and black tea largely remained unchanged, Khan Ali added.

A wood merchant in Dasht-i-Barchi area of the capital, Sultan Ali, said 560 kilograms of quality solid fuel, accounting for 4,000 afghanis last week, sold for 4,400 afghanis.

One gram Arabian gold, according to jeweller Abdul Basir, stayed stable at 1150 afghanis but the Iranian variety rate fell from 970 t0 950 afghanis, coming down by 20 afghanis.

Liquefied petroleum gas (LPG) seller Sharfuddin informed this scribe there was no considerable change in the price of one kilogram gas - 50 to 60 afghanis. Pump station-owner Shah Mahmud said a litre of diesel cost 42 afghanis and petrol 40 afghanis.

As for currency exchange rates, there was no big change in the money market, where one US dollar accounted for 49.75 afghanis and 1,000 Pakistani rupees for 813 afghanis, Last week, a dollar was equal to 49.85 afghanis and 1,000 Pakistani rupees to 814 afghanis.

Cotton market observes firm session Wednesday, December 12,2007 DAILY TIMES [3]

KARACHI: The Karachi cotton market witnessed a firm trading session on Tuesday as 15,000 bales changed hands while the spot rates remained stable, dealers said. A senior trader, Ghulam Rabbani said the spot rates at Karachi Cotton Association (KCA) remained stable at Rs 2,950 per maund while market seemed re-bouncing and ample quantities were traded at all producing regions. The lowest deal in Sindh was Rs 3,000 per maund while in Punjab, deals changed hands at Rs 3,050 per maund. He said the highest deal changed hands around Rs 3,125 per maund as a spinner bought about 7,000 running bales. Fine quality remained in focus with some stockiest asked for a premium. New York futures market March 2008 closed at 64.70 cents per pound with a gain of 15 points, while May 2008 closed at 66.31 cents per pound with a gain of 18 points. Total volume traded under cover of March 2008 was 10,733 contracts while the volume traded under cover May 2008 was 1,051 contracts. The USDA will release December 1 supply and demand report soon. The majority of trade analysts suggested a potential increase in US 2007-08 production of 500,000 bales due to higher yield recorded in west Texas. The potential rise in US outturn will most likely be offset by an equal reduction in Pakistani production. A senior broker said physical market prices remained between Rs 2,950 per maund and Rs 3,110 per maund. According to KCA, 200 bales of southern Punjab changed hands at Rs 3,120 per maund, 200 bales of Rajanpur at Rs 3,125 per maund, 200 bales of upper Sindh at Rs 3,115 per maund and 200 bales of Multan at Rs 2,950 per maund.

SBP asks not to roll over wheat funds Thursday, December 13,2007 DAILY TIMES [4]

KARACHI: State Bank of Pakistan (SBP) has asked the banks that funds provided under wheat financing to private sector are not rolled over and adjusted as per terms and conditions of the loans on or before January 31, 2008.

The terms and conditions would, however, remain unchanged, which were mentioned in the earlier circular, which suggested that to allow the participation of the private sector in wheat procurement, banks may provide financing facilities to their eligible borrowers (licensed wheat traders and the flour mills) for procurement of indigenous wheat only (for fresh wheat crop 2007) during the wheat procurement season 2007 subject to the conditions.

Banks will determine the rate of markup on lending to the private sector for the purpose of wheat procurement depending upon the risk profile of each borrower. As lending to the government agencies for wheat procurement is secured against government guarantee, it is expected that the related markup rate would be competitive in comparison to the rate charged to the borrower in private sector.

Banks may fix minimum margin requirement of 10 percent of the value of the wheat stock. However, banks will not provide any financial facilities (funded or non- funded) to enable borrowers to meet the margin requirements.

TDAP restructuring hits snags Thursday, December 13,2007 DAILY TIMES [5]

KARACHI: Restructuring of the Trade Development Authority of Pakistan (TDAP), which replaced the now-defunct Export Promotion Bureau (EPB) last year, has been moving slowly because of delay in release of funds from the federal government, it is reliably learnt.

"The Ministry of Finance has been delaying the release of full amount of the TDAP's allocated budget as so far it has only received the amount for the defunct EPB, which is insufficient to undertake the required restructuring and development of this new organisation," sources told Daily Times on Wednesday.

A budget of approximately Rs 1.8 billion was allocated for TDAP, which was also approved by its board, whereas it has received only around Rs 800 million that used to be the budget of EPB.

In order to overcome this financial crisis, the authority is reportedly approaching highest offices of the federal government to get the issue resolved for the smooth restructuring and functioning of TDAP, established with the new theme of not only export promotion but also focusing on trade development.

Sources said that whenever MoF was approached for solving the issue, a cold response awaited them, as efforts made so far have not yielded any result. "The traditional bureaucratic mindset is hindering the release of funds," sources remarked when asked about the reasons for withholding of this amount.

Surprisingly, the Secretary Finance as well as other high government officials are also part of TDAP's board that approved this amount. Sources disclosed that released amount of Rs 800 million is only sufficient only for six months and if the allocated amount was not released immediately, more financial problems would arise in the coming months of January and February.

Sources feared that if some immediate measures were not taken, various plans for export promotion and trade development, currently underway would be in jeopardy.

Also, the employees of TDAP would also suffer. This scarcity of funds would also be making it hard for the authority to pay their salaries, whose budget is much larger compared to EPB because of people hired from the private sector.

Sources said that the stuck up amount largely comprises of Export Marketing Development Fund (EMDF).

Date molasses benefit Pabna farmers Thursday, December 13,2007 NEW AGE [6]

PABNA: PRODUCTION of date molasses in winter changes the lot of many farmers of Pabna. They can run their families well during the winter for date juice, locals said.

This is the full season of ‘nalini patali' made of date juice. Different markets of the district have now been flooded with date molasses.

Extraction of date juice has been going on in full swing in the district with the advent of the winter. The extraction will continue till the end of the spring.

According to locals, Pabna and its neighbouring districts have been famous for quality date molasses. Date trees grow abundantly in the district due to favourable soil and climatic condition. They need no particular care on nursing.

A survey conducted recently by Aso Jiban Gari, an NGO, revealed that there were about seven lakh date trees in 1,836 villages of the district and molasses worth Tk 100 crore was produced from the juice of these trees annually.

Every year during the winter professional extractors become busy extracting date juice from trees, and produce molasses out of it.

Traditional date juice extractors, locally known as gachhis, trim the tops of trees normally from noon to evening, insert a tiny bamboo-made pipe into the trimmed portion of each tree in a special way, and fix an earthen pot to it so that the juice is collected drop by drop in it. The pot becomes full in the morning.

The ‘gachhis' trim scores of trees in this way and collect the pots in the morning and take those to markets for sale. They earn a substantial amount of money during this season.

Date juice has to be boiled for long hours to produce ‘patali' and molasses. The time varies in producing various qualities of molasses. Its quantity is reduced to make small hard cakes usually weighing 250 grams each. It is locally called ‘patali.' Semi solid variety of molasses is called ‘gur.'

Different kinds of winter cakes like puli, bhapa, patisapta etc are prepared by using date molasses. People in rural areas are accustomed to taking ‘gur' with puffed rice, flaked rice, milk and coconut at breakfast during the winter season. They even entertain their guests with the same. Raw juice is also relishing.

Scores of bullock carts, push carts, rickshaw vans and buffalo carts loaded with earthen pots full of molasses are seen heading for different markets in the district everyday for sale. Trucks loaded with date molasses are sent to Dhaka, Chittagong and other districts.

When this correspondent visited Tebunia market in the district headquarters and Barobazar on Dai Bazar road, he saw date molasses and gur-patali were selling at exorbitant prices due to their high demand.

Per kilogram of molasses was being sold at Tk 30 to Tk 40 according to its variety. Per kilogram of ‘nalini gur' was being sold at Tk 40 to Tk 50. The other quality patali was being sold at Tk 50 to Tk 60.

A large number of traders are coming to Pabna from the neighbouring districts for purchasing date molasses this year, a trader at the market said.

BRCS distributes seeds to 11,200 farmers Thursday, December 13,2007 NEW AGE [7]

DHAKA: The Bangladesh Red Crescent Society in cooperation with International Federation of Red Cross and Red Crescent distributed seeds among 11,200 marginal and small farmers in Faridpur, Shariatpur, Manikganj and Tangail.

The distribution was done with the assistance of European Commission of Humanitarian Department which also helped more than 40,000 beneficiaries with food and non-food items in four of most flood-affected districts.

‘Despite the devastation of the cyclone, we are not forgetting the flood-affected people who have lost all their livelihoods,' said Selvaratnum Sinnadurai, head of delegation of International Federation of Red Cross and Red Crescent.

Bangladesh was affected with three disastrous calamities this year - two spells of floods in August and September, followed by the devastating cyclone in November. The second spell of flood in mid-September damaged crops on millions of acres of land.

The society with support of the federation has so far assisted 2.5 lakh flood-affected people with

Production on test fields higher Thursday, December 13,2007 NEW AGE [8]

DHAKA: The hectare-wide production of modern varieties of rice on farmers' land during aman and boro seasons is much lower than that of demonstration fields, said a study report.

Farmers produced 4-5 tonnes of high yielding varieties of rice such as BR-11, BR-23, BRRI dhan 31, 41 and 44 on per hectare of land during t-aman season while 5.5-6.5 tonnes of rice were produced on demonstration fields.

During boro season, the hectare-wide production of high yielding varieties of BRRI dhan 28 and 29 was about 5-7 tonnes while it was nearly 7-9 tonnes on demonstration fields, said the study styled ‘Comparative Demonstration of Modern Rice Varieties for Yield Optimisation' conducted by Bangladesh Rice Research Institute in 2006.

The report attributed scarcity of quality seed, improper use of fertiliser, use of older seedlings both in boro and t-aman season, late plantation and use of fertiliser at inappropriate time to low yield on farmers' fields.

In addition, lack of pest control measures at proper time, late weeding and lack of proper weeding, delay in water supply from tube wells during boro season and lack of supplementary irrigation during t-aman season were among the factors responsible for yield gap, the study added.

Bangladesh needs to boost rice production to meet the growing demand emanating from population growth as an increase in domestic production now largely depends on growth of rice yields, the report said.

According to the study, motivation of farmers, adoption of modern technologies, massive orientations and demonstrations could help increase the production on farmers' fields.

MA Mazid, principal scientific officer of BRRI Rangpur region said, ‘Average yield is likely to come down to 1-1.5 tonnes per hectare due to delay in planting seedlings.'

He said it was possible for the farmers to increase the yield by 1-1.5 tonnes per hectare, if they sowed the seeds and transplanted the seedlings timely. ‘Supply of adequate fertiliser and quality seeds will also help to boost crop yields both in boro and aman seasons.'

When contacted, BRRI director general Nur-E-Elahi said the farmers usually transplanted age-old seedlings during aman and boro seasons as water was not available on time, resulting in sharp reduction in rice production.

Formulation of a policy by the government regarding to the operation of water pumps at proper time as well as the transplantation of seedlings timely and smooth supply of fertiliser by the farmers would help to minimise yield gap significantly, he said.

B-onion seed shortage overcome Thursday, December 13,2007 DAILY NEWS [9]

COLOMBO: To overcome the existing shortage of seed paddy, production of seed paddy at village level is being carried out by the Eksath Govi Sanvidhanaya of Dambulla according to its President A.M.I.B. Herath. He disclosed this at the District Agricultural Coordinating Committee meeting held at Matale.

The District Chief Secretary Gamini Seneviratne presided.

The Chairman of the Organisation said, in addition to seed paddy production, B-onion seed production too had been carried out, and the Yala production was carried out with the local seed production, which was a tremendous success.

This would make farmers depend on indigenous seed paddy production.

District Secretary Gamini Seneviratne said the benefit received by the B-onion farmers is a matter of happiness, but local farmers must make every effort to avoid scarcity which would be a burden to the public if the price reaches an unprecedented level. Ultimate benefit should go to the public, he said.

Finding another to wheat flour stressed Thursday, December 13,2007 DAILY NEWS [10]

COLOMBO: "If we could introduce alternatives to Flour in the country it would have helped our economy a great deal", Agriculture Development and Agrarian Services Minister Maithripala Sirisena, said. "For this, the credit should go to the Institute of Post Harvest Technology (IPHT) for introducing these measures after successful research since 2000", Minister added. Minister Sirisena said this at the media briefing on Monday organised to introduce alternatives to reduce the consumption of Wheat Flour in the country.

Minister Sirisena said the awareness of the people about the alternative for Wheat Flour consumption was at very low level and the main task of the workshop is to convey the importance of the reduction of Wheat Flour consumption through the Print and Electronic media.

He also said that the IPHT was prepared to introduce the manufacturing process of good quality rice flour, kurakkan flour, Maize flour, green gram flour with necessary implements, machines including consultancy services.

A.S.M. Nawarathne, Consultant Specialist of the Colombo National Hospital delivered a special lecture on the diseases derived from consuming Wheat Flour.

'Dist govt providing flour at Rs 16 kg' Friday, December 14,2007 THE NEWS [11]

SUKKUR: Implementing the orders of the caretaker Chief Minister Sindh, the District Nazim, Sukkur, Syed Nasir Hussain Shah, and District Coordination Officer, Sukkur, Khawaja Shafiq Ahmed, visited flour stalls established by the food department on Thursday. The stalls, established at the Clock Tower by Flour Mills Association, Sukkur, sold flour at Rs 16 per kg. Speaking on the occasion, the district Nazim said that under the directives of the Sindh chief minister to provide relief to the people, the district government with the cooperation of the Flour Mills Association, Sukkur, had established Atta (flour) stalls at the Clock Tower where 10 kg bags of flour were being sold at the rate of Rs 16 per kg.

He added that mobile vans had been sent to various city localities to sell flour at the same rate. On the occasion, DCO Sukkur directed dealers and retail shopkeepers to avoid hoarding and black marketing of Atta, failing which action would be taken against them under the relevant laws.

The flourmills association representatives said that some 17 flourmills had cooperated with the city government to provide flour at Rs 16 per kg. They added that flour was being provided in the city and in the remote villages and towns of the district through mobile vans.

Fertiliser shortage hits rabi crop Friday, December 14,2007 NEW AGE [12]

JAMALPUR: Feritiliser crisis is seriously affecting cultivation of Rabi crops in all seven upazilas in Jamalpur.

Farmers fear huge fall in Rabi crop production in the district this year due to the crisis of the agri input.

Around 1.50 lakh hectares has been brought under Rabi crop cultivation with the production target of about 7.50 tonnes, sources at the Department of Agricultural Extension said.

A section of dealers have created artificial crisis of fertiliser to make a windfall, some farmers said adding they are selling fertiliser at prices much higher than the government-fixed rate.

Per sack (50 kg) MP fertiliser is being sold at Tk 1200 to 1300 while the government-fixed rate is Tk 774, per sack of TSP is selling at Tk1400 to 1500 against Tk 874, per sack of SSP fertiliser at Tk 1500-1700 against Tk 425, per sack Potas at Tk 1600 to 1700 against Tk 800 and per sack urea is selling at Tk 320 against Tk 285.

Mutaleb Mullah, farmer of Madarganj upazila, said he planed to cultivate Rabi crops on six bhigas of land. ‘But I have not yet started cultivation on my lands due to fertiliser crisis, he said.

Shohag Mia, farmer of Parpara under district headquarters, said he cannot cultivate Boro paddy and other crops on his 16 bighas of land for fertiliser crisis.

Fertiliser dealers said the crisis has created as the Jamuna fertiliser factory had remained suspended for 36 days. The factory resumed production on 24 November.

Denying farmers' allegation, a dealer of district headquarters, Balayet Hossain, said they were selling fertiliser at the government-fixed prices.

Agriculture officer of the district sadar upazila Fazlul Karim Sani and Shaiful Islam of Dewanganj upazila claimed there was no urea crisis in the district.

Meanwhile, the DAE has distributed Boro seeds among 57,690 flood-affected farmers in the district under the post-flood rehabilitation programme.

Each of the farmers got five kg of Boro seeds for cultivation of onew bigha of land.

BRRI to reach modern farm tech Friday, December 14,2007 NEW AGE [13]

GAZIPUR: Bangladesh Rice Research Institute has taken up a project to improve the livelihood of rice farmers in haor areas of Sunamganj district and help them recoup crop losses from flash floods every year.

Under the project, supported by Swiss Agency for Development and Cooperation, the institute will introduce modern rice farming technologies to the farmers of haor areas, so far left out of the BRRI coverage.

The BRRI earlier conducted advocacy and participatory programmes in the areas.

Apart from giving them training, the institute will help farmers select suitable paddy varieties and use modern farm technologies to have better yields, BRRI director general Nur-e Elahi said at a training session last week.

Some 25 local service providers participated in a three-day training course at the institute's Gazipur campus.

BRRI research director MA Salam said, ‘We are trying to change the existing cultivation scenario in the haor areas to improve livelihoods of the rice farmers.'

Although BRRI technologies have spread all over the country, six upazilas -Taherpur, Jamalganj, Bishamberpur, Shalla, Dirai and Darmashala- of Sunamganj district remained less focused with little or no agriculture extension services.

Boro rice is the only crop in those areas, which remain under water in most period of the year. Farmers mostly follow traditional cultivation method, BRRI officials said.

Flash flood in mid-April causes huge loss to the only crop of the year, as the farmers sow long duration rice varieties instead of short duration ones, they said.

There is little effort for weeding, fertilisation and irrigation, resulting in low yields of rice.