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Pakistan Agriculture Developments

Pakistan-China cooperation in agriculture needed to counter climate change​


By Mehmood Ul Hassan Khan | Gwadar Pro Aug 10, 2022



This year Pakistan has experienced the hottest summer in the last thirty years which has badly affected its people, crops and fruits alike. The heat was intensified, prolonged and widespread and coupled with below-average rainfall, impacting hundreds of millions of people in the country.
According to an official study (2020-2021), rice crops would be badly affected in the country due to alarming high temperature. Even wheat and rice yields will decrease by 6 percent and 15-18 percent respectively across Pakistan, except for the northern areas.
Climate change also geared-up water shortage in the country even “metropolitan cities” like Lahore, Karachi, Islamabad, Rawalpindi and many others are facing the bitter reality of water depleting situation. Life has become more vulnerable and miserable in big cities in the country. Cholistan is one of the most affected areas, which is going through acute shortages of water. People are suffering and losing their sources of livelihood, e.g. livestock.
Sixty percent of the population of Pakistan is directly or indirectly reliant upon rain-fed agriculture that depends on predictable weather patterns. Global climatic change affects its agriculture and its impacts seem to increase daily.
Therefore, Pakistan should seek cooperation with China on diverse sectors of agriculture production, climate change, water conservation, cultivation of hybrid crops, scientific cooperation to mitigate spillover ramifications of climate change in the country.
The ongoing cooperation between Faisalabad Agriculture University and Chinese universities should be further strengthened, highlighting new areas of mutual and befitting cooperation. In this regard, the establishment of a Special Agriculture Technology Zone (SATZ) in Faisalabad should be built as soon as possible and invite Chinese counterparts and enterprises for this project.
The China Machinery Engineering Corporation (CMEC) showed keen interest in setting up an Agriculture, Science and Technology Transferring Center in Pakistan to boost cooperation in agriculture mechanisation for the improvement of crops’ yield and seeds’ quality in the country which is good omen for the development of mechanized agro-production, economy an industry alike in the country.
Even, Pakistan Agricultural Research Council (PARC) and Chinese Yunnan Academy of Agricultural Sciences (YAAS) signed a memorandum of understanding (MoU) to promote agricultural cooperation between Pakistan and China. Hopefully, it will further enhance agriculture cooperation in diverse sectors of research, plantation and production in the country. Moreover, plant protection and pest control will be increased manifold and cross-border agricultural pest research, talent cultivation and scientific and technological training will also be further strengthened and streamlined.
The Joint Working Group on Agriculture under CPEC is working on Joint Action Plan and recently China-Pakistan Green Corridor was also launched to further streamline cooperation in the areas of food security, new seed development, crops yield, corporate farming, irrigation etc.
Furthermore, the Chinese partners' contract-based chili farming in the country is about to cultivate a cumulative 5,000 acres. Even onion exports to China are recent dividends of deepened agricultural trade. Likewise, Pakistani fish and rice have gained a significant place in Chinese markets.
China's comprehensive and timely support to counter locust swarms helped avoid a food crisis in the country's southern areas. These are a few examples of recent developments observed under improved business-to-business and people-to-people contracts between the two countries, which has further strengthened bilateral agriculture cooperation between two brotherly countries.
Collaborations in precision agriculture and early warning systems should be further strengthened to boost crop productivity, climate resilience, water management and help fight natural calamities like locust infestation. Seeking support in climate-smart agriculture could be of greater interest to Pakistan as China's digital agro-economy is about to grow over $ 100 billion. Thus, integrating advanced information technology could help bring a third green revolution.
To conclude, China and Pakistan have agreed to further strengthen cooperation on natural disasters prevention and mitigation to build a China-Pakistan community with a shared future which will ensure a stable platform for preservation of natural resources.

 
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CPEC-supported solar energy boosts Pakistani produce cultivation​

Tahir Ali | Gwadar Pro


CPEC-supported solar energy boosts Pakistani produce cultivation


Palai valley produces quality blood red oranges. [Photo by Tahir Ali/Gwadar Pro]


PESHAWAR, Jan. 8 (Gwadar Pro) - Malakand district in northwestern Khyber Pakhtunkhwa (KP) is a strategically important position, which gives access to the ancient, beautiful valley of “Udyana” (Swat). Palai is a small valley in lower Malakand, known for producing high-quality oranges (called malta, citrus sinensis). Palai is the center of a cluster of seven villages namely Bara Bazdara, Koza Bazdara, Sherkhana, Zormandai, Mora Banda and Zangal, all producing citrus for decades.

The oranges of Palai are popular due to their distinctive aroma, taste, color and size. Although the sandy loamy soil of Palai valley is suitable for cultivating oranges, especially the blood-red citrus until recently the lack of a proper irrigation system limited its cultivation to household consumption instead of commercial sale and consumption.

According to Raham Khaliq, a local cultivator, in the early 1980s farmers started digging tube wells running with electric power generators, leading to an increase in citrus orchards. Some farmers also established similar orchards with tube wells running with diesel generators. Hence, with the advent of tube wells in the area, citrus production increased and people began to sell their fruits in nearby markets. However, the majority of the tube wells were established near villages, so remote uninhabited areas, with no electricity supply line, remained barren, or people cultivated wheat, maize and other such crops relying on rainwater.

Talking to Gwadar Pro, Raham Khaliq said that the malta of Palai had established itself in the market due to its quality. In recent years, the number of citrus orchards increased a lot after farmers started installing solar-powered tube wells in their fields. Apart from citrus, local people also cultivate peaches, guavas, tomatoes and other vegetables.


CPEC-supported solar energy boosts Pakistani produce cultivation

Orange orchard irrigated with solar-powered tube well in Sherkhana village. [Photo by Tahir Ali/Gwadar Pro]


Afzal Hussain installed a solar-powered pump on his tube-well in Bara Bazdara village about five years ago. The tube well brought about a revolution in his farming and he began the cultivation of malta, peaches and tomatoes in his fields, which for centuries had relied only on rainwater and produced only wheat and corn. “Today my land is not only a source of income for my family but our orchards have provided informal jobs for several locals,” .

Zahid Shah is another farmer from Sherkhana village who uses both electric and diesel operated tube-wells to water his orange orchards. However, he is thinking of switching to a solar-powered tube-well. “Due to frequent load-shedding and low voltage and soaring gasoline prices, I am going to move to solar tube-wells,” he told Gwadar Pro adding that many cultivators have started using solar systems and even the arid hilly areas have turned green due to solar-powered tube wells.

The area with bright blue sky and powerful sun receive more than 10 hours of sunlight making it conducive for solar system installation.

Abdur Rahim runs a small engineering workshop in Batkhela, the headquarters of the Malakand district. Although he is not an engineer with a university degree, he has acquired expertise in the solar energy system and has installed many solar systems to meet the electricity needs of households and farms.

Talking to Gwadar Pro, Abdur Rahim said the solar-powered tube wells have brought about an agricultural revolution in the Malakand area. People have started growing fruit trees and cultivating wheat and maize on those arid lands which until recently were only suitable for shrubs while some planted eucalyptus in those fields.


CPEC-supported solar energy boosts Pakistani produce cultivation

Solar-powered tube well turns barren land green. [Photo by Tahir Ali/Gwadar Pro]


Due to limited resources, Abdur Rahim’s clients opt for cheaper solar-powered tube wells. “I have set up such tube wells worth about Rs. 170,000 to Rs 1,100,000 (1.1 million) for my clients”, he said. According to him, all the photovoltaic (PV) modules he uses are from China while the stands and cables for the system are made in Pakistan.

The majority of submersible water-pumps used in the tube wells are also Chinese products. “Almost 80% of the parts of solar-powered tube wells come from China, while 20% of the parts are made locally,” he said and added that some of the farmers had to spend Rs 10,000 to Rs. 40,000 per month for electricity and fuel consumption but are now running their solar-powered tube wells at no monthly cost.

Pakistan is facing an electricity crisis. Currently, most of the electricity comes from fossil fuel, which is imported and costs a huge amount of money. However, Pakistan has abundant renewable energy resources including wind, solar, hydro and biomass that could ensure large-scale renewable electricity systems in the country. According to Pakistan Economic Survey 2019-20, Pakistan generates 96,382 GWH electricity, out of which only 2,057 GWH comes from renewable energy sources.

According to energy experts, Pakistan has a high potential for renewable energy resources with solar being one of the most convenient and easily achievable mediums. Quaid-e-Azam 1000 MW Solar Park in Bahawalpur, South Punjab, is also part of the China-Pakistan Economic Corridor (CPEC). According to the CPEC official website, the commercial operation date (COD) of 4x 100 MW was attained in August 2016 while 600 MW is under construction.

According to Saeed Hussain, a senior official of the Pakistan Council of Renewable Energy Technologies (PCRET), the PV modules are one of the cheapest ways to get electricity. “Mostly Pakistanis import PV from China, which is leading in solar technology in the world,” he told Gwadar Pro and added that currently around 200 MW electricity is received from PV including from small-scale generation.


CPEC-supported solar energy boosts Pakistani produce cultivation


Water supply scheme run with solar energy in upper Malakand. [Photo by Tahir Ali/Gwadar Pro]


In a recent conversation with Sustainable Development Policy Institute (SDPI), Minister for Science and Technology Chaudhry Fawad Hussain said that Pakistan would soon establish its own solar and batteries manufacturing units by establishing a local partnership with Chinese mega-producers. “It would be a big change if Pakistan made its own energy and manufactured its own panels and batteries,” the Minister said.

The Government of Prime Minister Imran Khan has formulated a new Alternative and Renewable Energy (ARE) policy aimed at creating a conducive environment and supported by a robust framework for the sustainable growth of the ARE sector in Pakistan.

ARE Policy 2019-20 envisages the development of large-scale ARE projects in all parts of the country through the active participation of the provinces. The projects focus specifically on wind and solar energy and invite the private sector to develop their business-cum-supply chain for off-grid solar solutions in remote villages.

The policy aims to extend the current share of ARE in the country’s energy from 5% to 20% by 2025 while in 2030 at least 30% of the country’s electricity would be received from renewable energy sources.
 
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Agriculture’s 75 years of success and stagnation

Ahmad Fraz Khan
August 15, 2022


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Agriculture, by far, is the biggest human activity in Pakistan, providing a way of life to two-thirds of the population, contributing 22.7 per cent to GDP, providing 37.4pc of national employment and anchoring over 70pc of exports.

Despite this phenomenal importance, the last 75 years present a patchy picture of the sector: progressing here and regressing there — enviable during a certain period and disappointing in others. Painting this decade-wise picture tells us that it witnessed record growth in the 1960s before slumping during the early 1970s. Recovering in the second half of the 70s, it sustained around 5pc growth in the 80s and 90s.

Since then, a growth rate between less than 1pc to 4pc has merely covered population growth and demand for food and fibre for the last two decades.

Historically speaking, the stage for early growth was set by a commission in the late fifties, which led to multiple development strategies through the sixties. Commonly known as the Green Revolution, it was an era of high, rather record, growth with the introduction of high-yielding crop varieties. Modern inputs like fertiliser and pesticides were introduced and progressive irrigation ways revolutionised the sector.

Despite early victories, lack of investments in research and planning has led to the disappointing over-reliance on imports while water is scarce and soil deteriorates


During that decade (1963-73), Pakistan’s per capita income grew by a healthy 27pc. As added an advantage, this growth mainly occurred in rural areas, where poverty resided. This high growth period led to the setting up of the embryonic fertiliser, tractor and seed industry, which later grew to expand to their current levels. The early seventies also saw the beginning of the poultry industry, which now boasts of over Rs400 billion investment and is a proud global competitor when it comes to technology and stocks.

The next foundational policy document was produced three decades down the line by Pakistan’s most prolific technocrat Sartaj Aziz in the late eighties, which not only diagnosed the then emerging ills but also prescribed its treatment and set parameters for the way forward. For most writers and experts in the sector, it is still considered the most relevant, but ignored, document.

For the next 34 years ago, no one bothered to seek guidelines from it or refresh it through another attempt at the same level, thus creating a policy vacuum at the national level.

However, beyond these works, which should have created a policy and development discipline, the sector has grown at its own pace and direction — dictated by potential and profits, regardless of sustainability and cost of the experiment.

In the last seven decades, crop concentration has hit 167pc against the 67pc of irrigation planning — producing three crops instead of the historical one crop from the same soil. Imported hybrid seeds multiplied the number and yields of crops beyond most calculations and sustainability.

For example, maize, which at merely 705,000 tonnes in the 70s, has gone beyond eight million tonnes. Rice numbers grow both in variety and yield and hit production of 7.5m tonnes — with over 4m tonnes being exported — making Pakistan the tenth largest producer globally.

Cotton production rose from 188,000 bales in the 1950s to over 14m bales at one point, before dipping down to half of it right now. Sugarcane stood at 81m tonnes in 2020 — rising from 23m tonnes in 1971. The potato crop has gone beyond 6m tonnes.

All these figures look impressive when taken out of context because they have put Pakistan on the world food map in a respectable position: cotton, rice and mango (4th), milk, sugarcane and date palm (5th), citrus (6th), wheat and onion (7th), chickpea (3rd) and apricot (6th).

However, when taken in the backdrop of the cost of this unplanned growth on soil health and underground water, the achievements are disastrous. According to global standards, the soil must have 1.29pc organic matter to qualify as healthy. In Pakistan, most of it has fallen below 1pc, with massive tracks having only half of 1pc.

As far as subsoil water is concerned, Pakistan’s potential is 68bn square meters, out of which 60bn square meters are being exploited. It is not being exploited only in those areas where pumping the water out is not feasible for technical or economic reasons. It means that this resource is almost exhausted. In most of Punjab, as some recent studies indicate, the level is dropping by one to three feet every year.

Even among those crops, which have seen a phenomenal rise in the last few decades, the two most crucial ones — wheat and cotton — have hit stubborn stagnation. Wheat has been stuck at 25m tonnes for the last eight years, with little variation every year — turning Pakistan into a net importer over the last four years.

Similarly, cotton production is actually receding, leaving the industry largely dependent on imports as other crops hog its area and economic sheen. Since policy planning and direction are missing, Pakistan is importing both at great foreign exchange pain.

These seven decades also present two more phenomenal failures: mechanisation and research. Since independence, mechanisation meant tractorisation and some harvesting and thrashing units. The tractor industry, which was the harbinger of the farm mechanisation process, has hogged all subsidies and other benefits for itself, leaving others out and ignoring the fact that the tractor does not perform at its optimum utility when running on its wheels alone — it needs implements alongside to hit optimum utility and most of them are simply not there.

Soil generally needs three kinds of inputs — primary (soil preparation), secondary (agronomic practices) and tertiary (harvesting). All of them need a complete range of implements which are missing in Pakistan’s scheme of things. Successive governments have announced subsidies on tractors and ignored the rest and compromised farm mechanisation in the process.

Research has also been a sore point in Pakistan’s context. It has spent far less than 1pc of agriculture GDP on research, against 6-7pc by others like India. This only increased dependence on imported seeds, which defied local ecological realities and soon lost utility. Climate change has added urgency to research requirements and makes this investment absolutely necessary.

Published in Dawn, The Business and Finance Weekly, August 15th, 2022
 
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Uniform gas prices proposed for fertiliser plants​

Farmers paying higher prices of fertiliser despite plants receiving discounted gas

Zafar Bhutta
August 23, 2022


ISLAMABAD: The government is working on a plan to introduce uniform gas prices for fertiliser manufacturers.

Two new fertiliser plants have been receiving gas at lower prices as compared to other plants. Despite this, they have been charging higher prices from farmers.

In addition, a couple of fertiliser plants are operating on expensive liquefied natural gas (LNG) and the government is paying a subsidy on the supply of LNG to these plants.

Fertiliser plants have not only been receiving cheaper gas for manufacturing but have also received billions of rupees in gas infrastructure development cess (GIDC). However, they have not deposited it in the national exchequer.

Crucially, farmers are paying higher prices for fertilisers despite the plants receiving discounted gas.

Therefore, the government has planned to introduce a policy of uniform gas prices for fertiliser manufacturers, who have also backed this initiative. The government believes that this move would stimulate market competition within the fertiliser manufacturing sector.

In the past, however, different sectors had a monopoly and thus had been manipulating prices accordingly. This resulted in the exploitation of farmers who were forced to purchase fertiliser at a higher price.

The new proposed policy of uniform gas prices may also lead to deregulation of fertiliser prices. The fertiliser sector has also been lobbying to allow it to set prices without any government involvement.

The government recently held a meeting on pricing of feed gas for fertiliser plants. Minister of industries and production directed the additional secretary to brief the forum, who subsequently gave a presentation and apprised the forum of different fertiliser manufacturers.

The petroleum minister stated that the government wants to rationalise the prices of gas being provided to fertiliser manufacturers so that market competition can be enhanced.

In the current scenario, two plants are carrying out operations on RLNG at a higher price than the rest of the manufacturers. This merits discussion and debate as to what should be the fair margin and at what price gas should be provided.

Agritech CEO informed the meeting that both Sui Northern Gas Pipelines Limited (SNGPL)-based plants are operating in the national interest, at a contribution margin of Rs186 per bag, which is not economically viable.

Fatima Fertiliser CEO endorsed this viewpoint and requested the government to shift both the SNGPL-based plants to indigenous gas at the earliest.

He stated that balanced fertiliser application needs to be promoted. He also supported the initiative of uniform gas prices for all manufacturers.

Published in The Express Tribune, August 23rd, 2022.
 
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Rs350m okayed for rice research​

Rice production to increase with development of new seed varieties



The Express Tribune
August 23, 2022

investment of rs350 million for the establishment of phytotron tunnels will expedite research and development on new rice varieties photo file


Investment of Rs350 million for the establishment of phytotron tunnels will expedite research and development on new rice varieties.


KARACHI: Sindh Government has approved Rs350 million for the establishment of phytotron tunnels for speedy research and development in order to introduce new rice varieties within the shortest possible time.

Previously, it was taking six to eight years to introduce a new rice seed for commercial use, as per the statement of the Rice Exporters Association of Pakistan (REAP).

“This project will be a game changer in the agriculture sector, as it is also useful for all agricultural commodities,” said REAP Secretary Altaf Hussain Shaikh.

Officials of Sindh Agriculture Department have submitted the initial draft of the feasibility report (PC-1) with the planning department for sanction of funds for this project, he added.

Pakistan is one of the largest producers of rice in the world. It produces about 9 million tons of rice annually and exports about 6 million tons to various countries.

Pakistan has a large share in global rice exports alongside other commodities such as cotton and sugar. Pakistan’s production is more than that of other countries like Vietnam and Thailand.

Rice is the most important cereal crop in Pakistan and it is produced in different parts of the country, with Punjab being the main producer and Sindh being its biggest consumer.

Rice production in K-P has also risen over the years due to improved irrigation facilities as well as better rainfall patterns in some areas.

In Gilgit-Baltistan and Azad Kashmir, however, wheat is grown instead of rice or maize because this area does not have enough water storage facilities for growing either crop.

“We hope that after the establishment of these phytotron tunnels at Rice Research Institute Dokri, we will see a phenomenal increase in rice production, which will definitely help to increase rice exports to fetch much-needed foreign exchange,” he said.

Rice is the staple food of Pakistan and yet more than one-fifth of the population suffers from food insecurity. The main challenges in rice production are limited use of crop technology, lack of good quality seed and poor market information due to unreliable supplies.

The low production levels of rice are caused both by natural and man-made factors. Natural reasons include lack of space and water, as well as population pressure.

The man-made reason for low production is the complex seed selection process which is time-consuming. Also, rice requires very high maintenance costs to ensure good yield.

“We are very thankful to the government for its support, which is much needed,” said REAP ex-senior vice chairman Muhammad Raza. Sindh will be the first province to have this latest and advanced facility in its rice research centres, noted rice exporter Anis Majeed.

“We have been discussing with the government that all the seeds including that of rice are mostly imported. This is itself reflective of the lack of research and development on varieties of seeds,” said Sindh Abadgar Board Senior Vice President Mahmood Nawaz Shah.

Phytotron tunnels are facilities that produce new seeds in a controlled environment, he explained.

“It is commendable that these tunnels are being introduced. That said, research work also needs to continue with clear objectives and accountability to bring results, without which the tunnels alone may not help,” he added.

Published in The Express Tribune, August 23rd, 2022.
 
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SBP sets Rs 1.8 Trillions agri credit target for FY 2023

Recorder Report
August 27, 2022



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KARACHI: The State Bank of Pakistan (SBP) has assigned annual agriculture credit disbursement target of Rs 1,800 billion to the financial institutions for FY23 to cater for the agriculture credit demand in the country.

Moreover, in line with the national food security requirements and need for mechanization of farms to enhance agriculture productivity, specific targets of Rs 140 billion for production loans of wheat crop, Rs 45 billion for tractor financing and Rs 20 billion for financing for harvesters, planters and other farm machinery have also been set under the overall target for FY23.

In addition, the SBP has also enhanced the per acre indicative credit limits for agriculture financing to support the farming community to avail adequate financing from banks and optimize their agriculture inputs’ usage. With a view to ensuring food security, per acre indicative credit limit for wheat has been enhanced from existing Rs 60,000 to Rs 100,000 which will allow farmers to deploy quality inputs for improved yields.

During FY22, the financial institutions managed to disburse Rs 1,419 billion to the agriculture sector compared with the disbursement of Rs 1,366 billion during FY21 whereas the outstanding agriculture credit recorded an encouraging growth of over 10 percent and reached Rs 691 billion by end June 2022. The unprecedented disbursement and growth in agriculture credit portfolio was supported by various recent initiatives of the SBP to promote agriculture credit and financial inclusion in the country.

One of the major recent initiatives of the SBP was the introduction of a comprehensive agriculture credit scoring model to bring focus of banks towards improving qualitative aspects and regional distribution of agriculture financing in the country.

The model, adopted by the Agricultural Credit Advisory Committee, provides individual scores reflective of each bank’s agriculture credit performance against multi-dimensional criteria based on various indicators including sectoral disbursement, regional performance, outstanding amount, and outstanding borrowers etc.

Recently, growth in agriculture credit disbursement remained subdued due to various challenges such as adverse climate change effects, resource constraints in banks, underutilization of approved limits by borrowers etc., while a few banks, particularly large public sector banks, among others, also performed slower than usual and struggled to achieve their assigned annual targets.

The SBP has also released the annual ranking of banks under this scoring model to bring transparency and competition among the various agriculture credit providers. As per the model’s results for FY22, HBL ranked on top among large banks with a score of 75.4, Bank of Punjab scored 62.1 and ranked highest among mid-sized banks and BankIslami stood first among small banks with a score of 55.7. Further, U Microfinance Bank ranked the highest among MFBs with a score of 80.4.

Copyright Business Recorder, 2022
 
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Cash crop suffers tremendous losses from floods​

35% of standing rice crop was damaged in Sindh and 29% in south Punjab

Our Correspondent
September 09, 2022


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LAHORE:
Pakistan’s cash crop suffered billions of rupees’ worth of losses caused by flood devastation, particularly in Sindh and South Punjab, said Shahzad Ali Malik, Chairman of the Pakistan Hi-Tech Hybrid Seed Association (PHHSA).

Quoting figures acquired from the United Nations World Food Organisation (WFO) he said, “We are estimating around 200,000 to 300,000 tons of rice lost in these floods which will be reflected in Pakistan’s exports.”

“Pakistan is slogging through one of the most devastating disasters in the country’s history on account of floods that left a third of land under water,” lamented the PHHSA chairman.

Explaining that the country’s agriculture sector remained the most affected, he said, “35% of the standing rice crop was damaged in Sindh and 29% in South Punjab, while other rice growing areas were also partially hit by excessive heat waves which affected the yields.”

“The deadly floods destroyed vast hectares of cotton and rice crops, a key source of employment and forex for the nation,” he highlighted.

Quoting preliminary reports from WFO, he said “Pakistan could lose at least a tenth of rice output to floods.”

Pakistan, the world’s fourth largest rice exporter, suffered extensive damage to agriculture, the mainstay of its economy, as floods ravaged large swathes of its farmland, he bemoaned.

According to Malik, Pakistan is forecasted to have lost 10% of its 2022 estimated rice production of around 8.7 million tons, making it difficult to achieve the rice exports target.

He demanded the government provide interest-free loans to all flood-hit farmers across the country as a top priority, besides provision of all agricultural inputs, at a highly subsidised rate which includes fuel, seed, fertiliser and electricity to afford some solace to this aggrieved section of society.

Published in The Express Tribune, September 9th, 2022.
 
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Recent rains, floods: Analyst calls for removing water from farmlands on urgent basis

Recorder

KARACHI: Currently, Pakistan is facing destruction beyond imagination, the whole country looks like a sea after floods, said Ateeq ur Rahman, economic and financial analyst.

During the devastation by rains and floods, almost like 35 million people got affected. Hundreds of thousands were left homeless.

There have been tremendous human losses. In terms of financial losses it’s like US 12 billion dollars to $ 15 billion.

He added that on one hand people desperately need humanitarian support in terms of shelter, food, safety, medicines, etc and on the other hand we need to dewater the agriculture lands, so that the wheat crop could be sown to avoid the “famine like situation”.

The rice crop, almost 35% of the total rice crop has been damaged therefore cannot meet the production or export targets. Similarly for cotton, the forecast is, all is lost minimum like 70%, said Ateeq.

The recent floods washed away our entire crops thus compounding the country into “food emergency situation”.

For immediate results, it is advised that we have to go for hybrid cultivation, he added.

Copyright Business Recorder, 2022
 
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No end in sight

Afshan Subohi
September 12, 2022


—RA



The pace of recovery in Sindh, beyond relief and rehabilitation efforts, will depend on the province’s ability to manage the plantation of the Rabi crops (cotton, rice, sugarcane, chillies, etc.) that have to be sown latest by early December.

“Rabi crop must be cultivated to rebuild lives and kickstart recovery in Sindh even if it has to be delayed to early December from October-November. We are targetting the revival of the irrigation network on priority, supporting and facilitating farmers with timely provision of seeds, tools/machinery and fertiliser and developing systems to lend a helping hand to inspire confidence to restart farming activities as soon as possible,” stated the chief minister of Sindh.

He was talking to a select group of journalists at the Chief Minister House early last week. Will the help of a PowerPoint presentation, he tried to fill in the information gaps. Slides highlighted inundated areas and those in danger of flooding, estimated losses, relief delivered thus far by the government, armed forces, etc, and the projected supply requirement necessary to sustain the displaced population.

Visibly distressed over the danger of flooding in multiple second-tier cities of Sindh and overwhelmed by the scale of devastation Chief Minister Sindh Murad Ali Shah did not even pretend to be in control. On the contrary, he expected the situation to actually get worse before it started to improve in the province.


Aware of the trust deficit, the Sindh government encourages NGOs’ rehabilitation efforts while it targets Rabi season’s crop cultitvation


“Eight hundred per cent higher than average rain in the provinces was a bolt from the blue. In mid-July, we took stock of the expected rain situation in the presence of all relevant functionaries, including the provincial disaster management authority. We assumed we had sufficient supplies to cope with the above-normal rain that Pakistan Metrological Department had warned us about.

“No one even remotely suggested what was to be. It was beyond our wildest imagination. Sadly, the situation turned out to be much worse for Sindh. Compared to 241pc higher than normal rain in Pakistan, Sindh received 784pc higher downpours in the first 25 days of August (435.6 millimetres against an average of 49.3mm). Therefore, it is unfair to blame the Sindh government for the misery and devastation in the province. Our systems might not be the best, but no government anywhere in the world can be prepared to cope with such a huge deviation,” the chief minister said.

An internally displaced flood-affected woman bathes her child at a makeshift camp in Mehar city after heavy monsoon rains in Dadu district, Sindh.—AFP


An internally displaced flood-affected woman bathes her child at a makeshift camp in Mehar city after heavy monsoon rains in Dadu district, Sindh.—AFP

Sharing his insights from his visits across Sindh, he said, “Floods washed away all mud houses in the affected districts and much of the infrastructure including roads, bridges and canal dykes in the province inflicting damages of whooping Rs1.5 trillion.

“Loss of lives, cattle stock and standing crops have broken our people. We are doing all in our power with the help of the federal government, armed forces, civil society organisations, global bodies and friendly countries to rescue and provide relief, but the challenge is too huge to be managed with the capacity and resource limitations. Sadly, I don’t foresee a semblance of normalcy restored before early December in the province”.

He did not contest the perception of the lack of trust in the Sindh government to channelise donations for flood victims. “Yes, we are aware of the trust deficit and encourage and support all non-government outfits disbursing relief goods and cash support for the uprooted people. It is pertinent, however, to remember that civil society organisations can never substitute government efforts.

“Today collectively, all private bodies might at best be catering to 5pc of the displaced people; the rest is taken care of by the government with the help of federal, local and global supporting structures”. He gave a rundown of relief material disbursed so far amongst the needy in a slide.

He said the dewatering of area is the biggest challenge in Sindh. “With Indus already high, draining of water is the biggest challenge right now. Where can I divert the water? It’s going to take its own sweet time to drain. I hope and pray that there are no further rains. The topography of Sindh doesn’t help. It is relatively flatter and will take longer for water to flow down through Indus to the ocean that is also experiencing high tide.”

He disclosed that a one-year recovery plan is in the works in Sindh. “We intend to focus on rebuilding roads, rehabilitating bridges, restoring the irrigation network and upgrading the drainage system keeping challenges of climate change in sight.
Responding to a question on their stance towards the opposition, he said it’s time to rise above politics, save people and help rebuild their lives and livelihood. “Honestly, I have no time for political bickering. As a chief executive of the province my focus is on dealing with the natural calamity which is my first and foremost responsibility.”

Published in Dawn, The Business and Finance Weekly, September 12th, 2022
 
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Cholistan land to be allotted to 20,000 farmers for five years

The Newspaper'
September 17, 2022

<p>Camels try to quench their thirst at an almost dried-out well in Cholistan.—Twitter / AlkhidmatOrg</p>

Camels try to quench their thirst at an almost dried-out well in Cholistan.—Twitter


LAHORE: The Punjab government has decided to give the government land in Cholistan to 20,000 local farmers for temporary cultivation for a period of five years in a transparent manner.

This was decided in a meeting chaired by Chief Minister Parvez Elahi at his office on Friday.

CM’s Special Assistant Dr Muhammad Afzal, MPA Chaudhry Ahsan, Senior Member Board of Revenue (SMBR) Zahid Akhtar Zaman, Principal Secretary to CM Muhammad Khan Bhatti, former principal secretary GM Sikandar and Cholistan Development Authority Managing Director Mehr Muhammad Khalid attended the meeting, while the Bahawalpur deputy commissioner participated through video-link.

The chief minister said the draw for the land allotment’s first phase would be conducted by the Punjab Information Technology Board (PITB), while another 5,000 farmers would be allotted land in the second phase.

He said the government would resolve Cholistani farmers’ problems on a priority basis and hoped this initiative would boost the agricultural economy in the area.

He said the people of Cholistan had an equal right to resources, hoping that allotment of land to the landless farmers would brighten their future.

PBA DELEGATION: Chief Minister Chaudhry Parvez Elahi on Friday assured a delegation of the Pakistan Broadcasters Association (PBA) that the Punjab government would resolve their problems on a priority basis.

The delegation, that called on CM Elahi and former federal minister Moonis Elahi at chief minister’s office included association chairman Mian Amir Mahmood, vice-chairman Mir Ibrahim Rahman, secretary-general Shakeel Masood and board member Tahir Khan.

The Punjab information secretary and DGPR were also present.

The chief minister said he had always raised voice for freedom of the press.

He said he was committed to the principles of tolerance and respect in politics.

He stressed the national institutions were nation’s dignity and they should not be made controversial. Respect for institutions is mandatory for everyone, he added.

Mr Elahi acknowledged that the Pakistan’s media industry had developed at a fast pace and its role was of key importance in the current situation.

He said the solution to the problems of Pakistan could be drawn through consensus and unity. He also said that he was striving for resolving problems and to give relief to the masses.

Published in Dawn, September 17th, 2022
 
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Floods damage non-basmati rice crop​

Total rice damage across Pakistan equals 1,155,000 tons on 860,000 acres

Usman Hanif
September 17, 2022

KARACHI: A significant part of the non-basmati rice crop has been damaged owing to the recent floods. In contrast, the basmati rice crop is standing intact.

“The rice sowing target for the current Kharif season was set on 1.8 million acres. During the months of April, May and till the mid of June, farmers in Sindh, in particular those in the rice belt, faced acute water shortage,” said Sindh Chamber of Agriculture (SCA) President, Miran Mohammed Shah.

“Owing to the water shortage, the rice nurseries could not be prepared in most of the areas,” he added.

The SCA president explained that “rice nurseries were prepared on a very small scale, only in those areas where water was available. By the end of June, rice was sown in only half of the targeted areas. The current rains started from the first week of July which continued till August 20, 2022. During those 50 plus rainy days, 65-70% of the rice nurseries were washed away in severely rain affected areas. In the remaining areas, 40-45% damage was done to the standing rice crops.”

Bayer Agri Grower Marketing Lead, Azeem Khan Niazi stated that “the rice area in general was impacted more by the heat spell, water shortage and load shedding before the monsoons arrived, particularly in Sindh.”

The SCA president noted that the “rice crop had been damaged by up to 55-60% across Sindh”.

“Pakistan exports approximately $2 billion worth of rice, of which 70% is coarse variety (IRRI-6 and 8), and 80% of the IRRI-6 variety is sown in Sindh. Thus, Sindh is the major contributor to the big quantity of rice exported,” Shah added.

“Due to the huge losses to the rice crop, the country will definitely not export the commodity at such a large scale as it used to do in previous years,” he further added.

“The damage was due to monsoon, flow of water from Indus Tributaries and the Kabul River,” said Agriculture Republic Co-founder, Aamer Hayat Bhandara.

“In Balochistan, rice is cultivated in the districts of Dera Bugti, Naseerabad and Jaffarabad. Approximately, 280,000 acres of land and 310,000 tons of rice have been damaged which is valued at Rs28 billion,” he further explained.

In Khyber Pakhtunkhwa, Swat and Dera Ismail Khan, 150,000 acres and 175,000 tons of rice have been damaged which is valued at Rs12 billion. In Sindh, 24% of the rice is grown in Thatta and Badin while 60% is grown in Kashmore, Shikarpur, Larkana and Shahdad Kot. Likewise, 16% is grown on the left Bank of the Indus in Ghotki, Khairpur and Sanghar. Out of this, 5% area of lower Sindh and 27% area of Dadu and Shahdad Kot, an estimated 310,000 acres, has been damaged by floods. The loss of rice totals 560,000 tons, which is valued at Rs44 billion.

The rice damage in total across Pakistan amounts to 860,000 acres and equals 1,155,000 tons. The total value of losses adds up to Rs 91 billion.

“If there had been no floods, then the total production would have amounted to 9.2 million tons valued at Rs810 billion,” explained Bhandara. However, the expected rice production after the flood damages stands at 8.1 million tons, he added.

“Domestic consumption is 4.2 million tons while the expected production loss stands at 1.1 million tons. Likewise, the expected export loss is 700,000 tons,” said Bhandara.

“Despite the floods, we do not need to import rice at all. Even after the damages and fulfilling the domestic need of 4.2 million tons, we will have over four million tons to export,” exclaimed Bhandara.

Published in The Express Tribune, September 17th, 2022.
 
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Fudging the numbers

Fatima S Attarwala
September 19, 2022


Lives have been lost, crops have been destroyed, and there is doom and gloom across the country. However, rice has escaped the worst and is headed towards record numbers.

“What we have been hearing from the private sector and people on the ground is that in the worst case scenario, rice suffered 20-30 per cent losses,” says a former chairman of the Rice Exporters Association of Pakistan (Reap), requesting anonymity.

This amount to about 500,000 acres. As a rule of thumb, one tonne of rice is exported per acre, so about half a million tonnes of exportable rice has been lost. Last year, Pakistan’s exports were at 4.7m tonnes — this year the exporters predict the number will fall to 4-4.2m tonnes.

Basmati bonanza

“Basmati’s major sowing area is Punjab, particularly Southern Punjab, which escaped flooding,” says a rice exporter. “On the other hand, the rain was beneficial for the crop.”

Death and destruction aside, rice is actually doing well amidst the floods

The yield of long-grain rice increased by 15-20pc per acre since the cool water from the rain helps it grow. Extrapolating the trend, exporters expect Basmati’s yield to increase by about 20pc when its harvest season starts next month.

The quantum of rice affected in flood-related areas of Sindh was about 300,000 tonnes, says an insider of the sector. However, the damage is limited to about 50pc because rice is a water-intensive crop. When the water receded, about half of the inundated areas had the crop still standing and thriving.

Pakistan produces about 2.5m tonnes of Basmati rice of which about 150,000 tonnes were affected. Traders hope that the increase in yield will offset the losses. “We expect over 4 million tonnes of exports in the current fiscal year which will generate over $2 billion for Pakistan,” says another former Reap chairman.

“Farmers growing Basmati rice are happy too. They are getting Rs250,000 per acre in revenue which is the highest return for the crop in the last decade,” he adds. “We will have a huge bumper crop next year. In part because the farmers will be encouraged from higher prices this year and partly because the floods have increased soil fertility for rice.”

Indian factor

India’s share in the global rice trade is over 40pc. With below-average monsoon rainfall and deepening concerns over flood inflation, India imposed a 20pc duty on exports of various grade of rice early this month.

“We expect long-grain rice prices to increase by $50-60 per tonne,” says the exporter solemnly but with an undernote of glee. “Thailand, Vietnam and Pakistan together cannot compensate for India’s share so the prices will rise.”

Overall, rice has not been doing well globally. Europe has been impacted by dry weather and the US’s quantum of growth has decreased owing to a higher cost of fertilizer, urea and fuel. There are reports of a very serious drought in China but those numbers are accounted for with caution, explains the ex-chairman.

Together, the limited global supply of rice and Pakistan’s bumper crops indicate a very rosy outlook for rice exporters in Pakistan. Last year, rice was grown over 9.5m acres. This year some of the acreage was lost to cotton and corn. But next year, insiders predict acreage to be back up to 9.5m acres but with a higher yield leading to record numbers.

Vested interests

So why are the numbers so blown up? According to data provided at a briefing at the Chief Minister House in Sindh earlier this month, nearly 75pc of the crop in the province has been destroyed.

The government wants the donations and the aid flowing in, says the former Reap chairman. It is in the interest of local farmers and traders that rice is traded at a higher price if there is panic in the market about a shortage.

Together, the implicit or explicit collusion has inflated the numbers.

India’s story is narrated with sympathy for the rival country’s exporters. “Even the vessels at ports have been impacted,” says the ex-chairman with sorrow for his brethren across the border. There is palpable unease at the thought of government intervention.

“A single tonne of Basmati rice exports can purchase three tonnes of wheat,” he says, the message being clear — don’t let food security fears prevent exports. Rice is not a staple in Pakistan, wheat is. Let us export rice and earn the dollars necessary for the purchase of wheat, he pleads.

Published in Dawn, The Business and Finance Weekly, September 19th, 2022
 
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Cotton...

LAHORE: The Spot Rate Committee of the Karachi Cotton Association (KCA) on Monday decreased the spot rate by Rs 300 per maund and closed it at Rs 22,200 per maund. The local cotton market remained steady and the trading volume remained satisfactory.

Cotton Analyst Naseem Usman said that the rate of cotton in Sindh is in between Rs 19,000 to Rs 21,500 per maund. The rate of cotton in Punjab is in between Rs 21,000 to Rs 23,000 per maund.

The rate of Phutti in Sindh is between Rs 6,500 to Rs 9,000 per 40 Kg. The rate of Phutti in Punjab is in between Rs 8,500 to Rs 12,000 per 40 Kg. The rate of cotton in Balochistan is in between Rs 19,000 to Rs 20,000 per maund.

400 bales of Khair Pur were sold at Rs 21,400 per maund, 1000 bales of Tando Adam were sold at Rs 20,000 to Rs 21,000 per maund, 1200 bales of Shahdad Pur were sold at Rs 20,500 per maund, 200 bales of Fort Abbas were sold at Rs 23,500 per maund and 600 bales of Layyah were sold at Rs 21,000 per maund.

The Spot Rate Committee of the Karachi Cotton Association on Monday decreased the spot rate by Rs 300 per maund and closed it at Rs 22,200 per maund. The price of Polyester Fiber was increased by Rs 5 per kg and was available at Rs 305 per kg.

Copyright Business Recorder, 2022
 
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