Tuesday, September 1, 2009

Solving Pakistan's Sugar Crisis


World raw sugar futures hit a 28-year high of 23.52 cents a pound last week as the fears of a bad sugarcane harvest grew stronger. The key background factor is the continuing scarce supply scenario in the global market because of weather factors, particularly in India, the second largest producer of sugarcane, according to the Wall Street Journal. While India is dealing with too little monsoon rain, the largest sugar producer Brazil is being hurt by too much rain.

At 4.89 million tons of annual sugar production, Pakistan is the tenth largest sugar producer in the world, and yet it has to import sugar, exposing it to the effects of sugar shortages and rising prices in the world. Pakistanis consume over 25 Kg of sugar per person versus India's 20Kg. Sugar cost Rs 25 per Kg (30 US cents) at the start of 2009 and now costs more than Rs 50, says independent economic analyst A.B. Shahid. This doubling of the price is likely to further enrich the large number of sugar producing politicians who are already rich and powerful.

The most pessimistic estimates show a 23 percent decline in sugar crop production this year. While last year Pakistan produced 4.7 million tons, farmers are on track to produce 3.2 million tons this year. That means a severe shortfall as annual national consumption is 4.2 million tons.

Both sugar production and per capita consumption as well as overall calorie intake have been rising in Pakistan. In the last four decades, per capita calorie intake in Pakistan has grown from 1750-2450 (kilo)calories with an average annual growth rate of 0.90%. Nevertheless, 20% of Pakistan's population is still undernourished. Sugar consumption has been showing an increasing trend for the last 15 years. It has increased from 2.89 million tons in 1995-96 to 3.95 million tons in 2005-06. One of the many reasons behind this increase is rise in the total population of the country, which has reached 170 million. The per capita sugar consumption data shows that it has also risen from 22.2 kg in 1995 to 25.8 kg in 2004-05. For 2008-09, the overall sugar consumption is forecast at over 4 million tons, which is less than the target production. But the government is importing about 300,000 tons of sugar to ensure availability of sufficient stock to cover any shortfalls from the usual smuggling to Afghanistan which remains a fact of life in Pakistan.

In addition to relatively large per capita sugar consumption, Pakistanis also consume significantly higher amounts of meat, poultry and milk products than other South Asian nations, getting more protein and almost half their daily, per capita calorie intake from non-food-grain sources.

The fact that Pakistanis have a sweet tooth is not lost on the nation's ruling elite, particularly the powerful political families and the Pakistani military. While the military owns Fauji sugar mills, more than 50% of the sugar in Pakistan is produced in sugar mills owned by the most powerful politicians of all major parties and their families.

Multiple sources indicate that the mills owned by President Asif Ali Zardari’s family and the ruling PPP leaders include Ansari Sugar Mills, Mirza Sugar Mills, Pangrio Sugar Mills, Sakrand Sugar Mills and Kiran Sugar Mills. Ashraf Sugar mills is owned by PPP leader and incumbent ZTBL President Ch Zaka Ashraf.

The media reports also indicate Kamalia Sugar Mills and Layyah Sugar Mills are owned by PML-N leaders. Former minister Abbas Sarfaraz is the owner of five out of six sugar mills in the NWFP. Nasrullah Khan Dareshak owns Indus Sugar Mills while Jahangir Khan Tareen has two sugar mills; JDW Sugar Mills and United Sugar Mills. PML-Q leader Anwar Cheema owns National Sugar Mills while Chaudhrys family is or was the owner of Pahrianwali Sugar Mills as it is being heard that they have sold the said mills. Senator Haroon Akhtar Khan owns Tandianwala Sugar Mills while Pattoki Sugar Mills is owned by Mian Mohammad Azhar, former Governor Punjab. PML-F leader Makhdoom Ahmad Mehmood owns Jamaldin Wali Sugar Mills. Chaudhry Muneer owns two mills in Rahimyar Khan district and Ch Pervaiz Elahi and former Minister of State for Foreign Affairs, Khusro Bakhtiar have shares in these mills.

Among other basic food commodities, per million population wheat consumption in Pakistan is 115,000 metric tons versus 63,000 metric tons in India, according to published data.

According to the FAO, the average dairy consumption of the developing countries is still very low (45 kg of all dairy products in liquid milk equivalent), compared with the average of 220 kg in the industrial countries. Few developing countries have per capita consumption exceeding 150 kg (Argentina, Uruguay and some pastoral countries in the Sudano-Sahelian zone of Africa). Among the most populous countries, only Pakistan, at 153 kg per capita, has such a level. In South Asia, where milk and dairy products are preferred foods, India has only 64 kg and Bangladesh 14 kg. East Asia has only 10 kg.

While it remains very low by world standards, meat and poultry consumption has also increased significantly in Pakistan over the last decade. Per capita availability of eggs went from 23 in 1991 to 43 in 2005, according to research by N. Daghir. Per capita meat consumption in Pakistan now stands at 12.4 Kg versus India's 4.6 Kg.

In spite of South Asia's growing horticulture industry, the intake of fruits and vegetables in India and Pakistan is surprisingly low at less than 100 grams per day per capita, according to the World Health Organization. This figure is far lower than the 300 grams of fruits and vegetables per person in Australia, EU and the US.

In spite of the fact that there is about 22% malnutrition in Pakistan, the average per capita calorie intake of about 2500 calories is within normal range. But the nutritional balance necessary for good health appears to be lacking in Pakistanis' dietary habits. One way to alleviate the sugar crisis in Pakistan is to reduce sugar consumption and substitute it with greater intake of fruits and vegetables. There is an urgent need for better health and nutritional education through strong public-private partnership to promote healthier eating in Pakistan.

Here is a video clip about sugar crisis:



Related Links:

Agricultural Diversification in South Asia

Nutrition in Pakistan

FAO Report on Food Consumption Patterns

Wheat Consumption in India and Pakistan

World of Sugar

Pakistan's Livestock Farming

36 comments:

Anita said...

How sure are you about your ownership figures? I just got mine from an article in The Nation (which looks like what you have below, unattributed.. let me know if you got the ownership list from somewhere else).. but because these were secondary sources and I was not privy to the methodology the news paper used, we did not feel we could name names..

My economist in my sugar package (did you catch it?) said he thought sugar businesses in the hands of the elite and politically powerful topped 80%... much more than 50%..

the figs of per capita sugar consumption vs fruit and veg are truly dismaying - there's a serious health crisis coming for sure. I'd love to run those figs across a variety of nations and see how they compare.. Turkey for example (where I am now) eats a much higher proportion of fruits and veg.. I would guess...

Riaz Haq said...

Several new reports from multiple sources including the Nation, Business Recorder and Aaj TV are naming names, some of which have been confirmed by PML politicians blaming the PPP for the crisis. And there are counter accusations.

It's an open secret that the sugar cartel is operated by members of the ruling elite who know what it means to have sweet tooth.

As to percentages,some the largest mills are owned by the politicians and , by virtue of their size, the output probably exceeds 50% of total output, maybe closer to 80%.

Turkey's fruits/vegs consumption might be closer to the Mediterranean nations' that typically consume more of them. My biggest surprize is how low it is in India, where both dairy and meats consumption is also very low...consideraby lower than Pakistan's.

Riaz Haq said...

The BBC is reporting about the growing sugar crisis in India as follows:

Sugar canes are half the size they should be due to lack of rain

India, the world's largest consumer of sugar, is facing a crisis because of a massive fall in domestic production and a sharp increase in the price of raw sugar worldwide.

The timing could not have been worse - at the onset of the festival season which is a time when the demand for sugar peaks.

It's led to concern all round - for farmers struggling with a weak output, for ordinary Indians who are having to fork out more for their purchases to the owners of traditional sweet shops. ..............................
"We simply cannot do without something sweet at the end of our meal."

But that fondness for sugar is now making a major dent in household expenses.

"We used to buy sugar at 25 rupees ($0.5) a kilo but it's already about 35 rupees ($0.72) and going up all the time," says another customer.

"It's bad news for the sweet-shop owners as well.

"We're being forced to raise the prices of our sweets but it's not enough to cover the increase," says manager Harsha Kumar.

Riaz Haq said...

A new British government report on child hunger and malnutrition in India is an "economic powerhouse" but a "nutritional weakling". Here is an excerpt from Times online story:

India is condemning another generation to brain damage, poor education and early death by failing to meet its targets for tackling the malnutrition that affects almost half of its children, a study backed by the British Government concluded yesterday.

The country is an “economic powerhouse but a nutritional weakling”, said the report by the British-based Institute of Development Studies (IDS), which incorporated papers by more than 20 India analysts. It said that despite India’s recent economic boom, at least 46 per cent of children up to the age of 3 still suffer from malnutrition, making the country home to a third of the world’s malnourished children. The UN defines malnutrition as a state in which an individual can no longer maintain natural bodily capacities such as growth, pregnancy, lactation, learning abilities, physical work and resisting and recovering from disease.

In 2001, India committed to the UN Millennium Development Goal of halving its number of hungry by 2015. China has already met its target. India, though, will not meet its goal until 2043, based on its current rate of progress, the IDS report concluded.

“It’s the contrast between India’s fantastic economic growth and its persistent malnutrition which is so shocking,” Lawrence Haddad, director of the IDS, told The Times. He said that an average of 6,000 children died every day in India; 2,000-3,000 of them from malnutrition.

Riaz Haq said...

Here is a report in Dawn today about how the Sharif brothers, waiting the wing to grab power, engaged in "money laundering", according to Ishaq Dar, a close associate and PML leader:

NAB Court documents have recently emerged which show that Senator Dar made some interesting revelations in an accountability court in April 2000.

The court was hearing the famous Hudaibiya Paper Mills case against the Sharif brothers.

The 43-page confessional statement of Senator Ishaq Dar was recorded on April 25th 2000 before the District Magistrate Lahore. Dar was produced before the court by the then Assistant Director Basharrat M Shahzad, of the Federal Investigation Agency (FIA).

Dar, in his statement had admitted that he had been handling the money matters of the Sharif family and he also alleged that Mian Nawaz Sharif and Mian Shahbaz Sharif were involved in money laundering worth at least $14.886 million.

The statement by Senator Ishaq Dar is irrevocable as it was recorded under section 164 of the Criminal Procedure Code (CrPC).

Senator Ishaq Dar is a high-profile PML-N leader and has always been considered close to the Sharif brothers as his son, Ali Dar, is married to Nawaz Sharif’s daughter, Asma.

But in April 2000 the top PML-N leadership had hit a rough patch by then and some of their loyal lieutenants were busy developing a new political system for General (retired) Pervez Musharraf after his October 1999 military coup.

In this context, Ishaq Dar accused Nawaz and Shahbaz Sharif of money laundering in the Hudaibiya Paper Mills case.

Interestingly, Ishaq Dar also implicated himself by confessing in the court that he – along with his friends Kamal Qureshi and Naeem Mehmood – had opened fake foreign currency accounts in different international banks.

He said that the entire amount in these banks finally landed in the accounts of Hudaibiya Paper Mills Limited.

Senator Ishaq Dar was the main witness against Nawaz and Shahbaz Sharif in the case.

The Hudaibiya Paper Mills case is still pending in the National Accountability Bureau.

Since the statement made by Dar was recorded under section 164 of the Criminal Procedure Code, the statement has become a permanent part of the case against the top PML-N leaders.

If the case is opened again, the Sharif brothers may discover that the tightening noose around them was originally prepared by one of their own family members and trusted lieutenant Senator Ishaq Dar.—DawnNews

http://www.dawn.com/wps/wcm/connect/dawn-content-library/dawn/news/pakistan/13+sharifs+accused+of+money+laundering-za-08

Riaz Haq said...

Here's a report in Daily Times indicating sugar crisis could affect pharma industry in Pakistan:

Former chairman FPCCI Standing Committee on Pharmaceuticals Dr Mushtaq Noorwala, expressing serious concern over the continuing crisis of sugar in the country, has cautioned that pharmaceuticals industry and other industries using sugar as raw material will be badly affected.

If availability of sugar at low price is not ensured for the pharmaceuticals sector in the country, there will be shortage of medicine in the country, which will create serious problems especially for the common man. Besides, a large number of people engaged with this industry will be rendered jobless, he said in a statement.

Dr Noorwala regretted that despite directives of the Supreme Court of Pakistan and the government’s stance about availability of huge sugar stock in the country, the commodity is sold at an un-affordably high price and is not easily available to the public.

He suggested that sugar could be sold by hawkers also to save the people from standing in long queues in front of the utility stores.

He was of the opinion that some elements by creating artificial crisis of sugar or wheat flour were actually defaming and creating trouble for the PPP-led government.

He also appealed to the consumers of soft-drinks, ice-creams, sweets, confectionery etc, to cut their consumption for saving sugar and thus contribute in bringing down its price. app

http://www.dailytimes.com.pk/default.asp?page=2009\11\11\story_11-11-2009_pg5_4

Riaz Haq said...

In a recent interview, food campaigner Jean Dreze aid, "For Indians to eat like the Chinese, let alone the French or the Italians, there will have to be a lot more food around."

Here are some excerpts from it:

"Firstly, I would not agree that India is “self-sufficient” in food production. It looks self-sufficient only because food intake is abysmally low, not only in terms of quantity but also in terms of quality. For Indians to eat like the Chinese, let alone the French or the Italians, there will have to be a lot more food around. Having said this, low food production is not the main issue, and food production itself would easily go up if there were enough purchasing power among the masses. The main issue is people’s inability to secure essential things that are required for good nutrition. These include not only food but also other inputs such as clean water, health care, sanitation, basic education and child care. All these fields of public policy have been grossly neglected for a long time."

"The NREGA can certainly help, and it does. In a recent survey of 1,000 NREGA workers conducted in 10 districts of North India, 69 per cent of the respondents felt that the NREGA had “helped them to avoid hunger” [see “The Battle for Employment Guarantee”, Frontline, January 2009]. But even if the NREGA functioned really well, which is not the case, it would have a limited impact on the nutrition situation, for many reasons. Some people are unable to participate in NREGA work because of illness, disability, old age, and so on. Those who do participate earn a meagre income at best, even if they work for 100 days in the year. And most importantly, good nutrition is not a matter of income alone. This applies especially to child nutrition, which is the foundation of good nutrition for all.

Even among households that are relatively well-off in economic terms, child under-nutrition is not uncommon, for reasons that can range from low birthweight and poor breastfeeding practices to lack of health care or gender discrimination. This is why a range of complementary interventions are required. It would be pointless to expect a single intervention, whether it is the NREGA or the PDS or the ICDS, to ensure food security."

Riaz Haq said...

Here's a Dawn report on US plans to help Pakistan's power sector:

LAHORE: Help for Pakistan’s energy sector will be a top priority in plans for direct US investment in the country under the Kerry-Lugar Bill, Administrator of the US Agency for International Development (USAID), Dr Rajiv Shah, said here on Wednesday.

“The US will help refurbish three thermal and one hydel power plant that will add some 4,500MW to the national grid,” Mr Shah said while talking to this correspondent at Lahore airport before leaving for Islamabad. USAID’s Pakistan Mission Director Robert Wilson was also present.

Dr Shah said the US would invest directly in Pakistani institutions in a wide range of areas. “It is time to take immediate action to aggressively meet education and health needs also.”

He dispelled a perception that a large part of the funding would go to consultants and contractors in the United States. “It will be utilised in water, education, health and agriculture sectors that are in tremendous need of development through short-, medium- and long-term infrastructural reforms.”

He said the initiatives would help create employment, especially in tribal areas where small and medium projects relating to infrastructure development, livelihood support and technology transfer would be launched.

The quality of education would be improved through teachers’ training, curriculum development programmes and provision of textbooks in other less developed areas, especially southern Punjab, he said.

In health sector, he said, the focus would be on strengthening professional institutions and USAID would arrange for capacity building of lady health workers and paramedical staff and higher education of physicians.

Dr Shah said reinvestment in agricultural research would be another major area of attention. “We are proud to be partners in research activities at the agriculture universities of Faisalabad and Rawalpindi. Now plans are afoot to improve training facilities and marketing skills of farmers as agriculture contributes more than 25 per cent to Pakistan’s Gross Domestic Product.

“We will work on the critical issue of water with programmes aimed at helping Pakistan better manage its water resources to ensure maximum water access to the people.”

Dr Shah said: “President Obama and Secretary of State Clinton launched strategic dialogue with Pakistan to make sure that our relationship is a broad and deep partnership defined by mutual respect and cooperation in a broad range of areas, especially energy, water, education and health sectors that are very important for development of cooperation.

“This trip was really an effort to follow up that strategic dialogue. We are here to meet Pakistani leaders in government, private sector and civil society. We also have a chance to meet professors at universities and hold discussions to explore effective means and ways to work together.”

Iftikhar A. Khan adds from Islamabad: Addressing a press conference in the federal capital, Dr Shah said aid to Pakistan was not tied to the country’s performance in stemming militancy. He underlined the need for financial management control to ensure that the aid was spent to achieve the defined objectives.

He said the US had significantly enhanced investment portfolio for Pakistan without setting any specific conditions.

He said the purpose of his visit was to learn about priorities in development and put in place many principles discussed during the recent round of strategic dialogue in Washington.

Dr Shah hinted at the possibility of helping Pakistan augment its water reservoirs. “We are looking at a broad range of options and will do everything which makes economic sense.” He said the US was working with other donors and international partners to help Pakistan improve its hydro infrastructure.

Riaz Haq said...

Here's a piece by BBC's Soutik Biswas on India's onion crisis:

A spectre is haunting India - the spectre of an onion-less life.

Onion prices have shot through the roof this week, climbing to an eye-watering 85 rupees ($1.87; £1.20) a kilo from 35 rupees only last week. Crop damage due to unseasonal rains has apparently led to a shortage. Traders have been hoarding stockpiles of the staple food to make a killing, despite official threats to punish them.

A fretful government has banned exports till mid-January to bring prices down, and cut import duties on the vegetable. The prime minister, we are told, is busy writing letters imploring his farm and consumer affairs ministries to bring down prices quickly. The opposition is breathing fire.

Onions have stormed their way to the front pages of newspapers and the top of TV news bulletins. I counted two dozen stories on onions in a dozen-odd English papers today. One editorial chides the government for the price rise and asks it to "know your onions". "UPA [United Progressive Alliance, another name for the ruling Congress-led government] lands in onion soup", is a particularly colourful banner headline in another paper. "Onions: Weep till March", bemoans yet another headline, alluding to a minister's deadline to fix the crisis. And a tabloid's onion edit - teasingly called "More at work than onions" - is strategically placed between one on a corruption scandal besieging the government and another on the sizzling alleged affair between the British actress Liz Hurley and the Australian cricketer Shane Warne.

Chefs and cookbook writers have come out in droves giving out free tips on how to cope without onions. "My advice, especially to those who want to eat out," says one chef, "would be to shift to different cuisines for a while as onions are primarily used in Indian cooking." So try European and other Asian foods, he advises. At home, he says, substitute onions with tomatoes and curds. Onion lovers may not find that a very convincing answer.

Everyone is concerned about the prospect of life without onions in India. Most worried of all are the politicians. In 1998, onion inflation was partly blamed for the unseating of the Hindu nationalist BJP government in Delhi's state polls. Political pundits insist that steep onion prices also contributed to the now-defunct Janata Party's debacle in the 1980 general elections.

So why do high onion prices drive Indians up the wall and unseat governments? One onion exporter said to a paper: "Why does the consumer never compare prices of onions with those of other vegetables? No vegetable is available at less than 40 rupees a kg in the retail market."

It's simple. Onion is a vegetable that no Indian kitchen can do without. It is also the most egalitarian of vegetables. A poor peasant or worker's sparse meal is incomplete without a bite of the pungent bulb. The onion is pureed, sauteed and garnished in the rich man's feast as well. It also occupies a unique culinary space in Indian cooking.

It is a must for adding taste and crunch to many vegetarian and non-vegetarian dishes. It is eaten raw as a salad, pureed for flavouring and sauce for meats and garden vegetables; used as a dip; fried as fritters and crisps. Rustic medicinal beliefs have it that it has healing properties and reduces acidity. Indians believe onions cool the body in the searingly hot summers and keep fungal infections away during muggy monsoons. In the old days Hindu widows kept away from onions after their husbands' deaths as the humble bulb was believed to have aphrodisiac qualities. How can you possibly compare such an exalted vegetable with any other?

Riaz Haq said...

How many hundreds of millions of poor Indians are there? asks the NY Times:

Nobody can argue that India has hundreds of millions of poor people and that the government should help them. What remains a matter of significant dispute, however, is just how many poor people there are in India.

The government Planning Commission estimates that 27.5 percent of the country’s population lives below the poverty line, which is calculated based on how much it would cost to buy 2,400 calories a day in rural areas and 2,100 in urban areas. (City dwellers are thought to exert less energy, so they should need to consume less.)

Many have challenged the way India measures poverty. The latest complaint came last week when a commission appointed by the country’s Supreme Court said the number of people living in poverty is probably at least 50 percent, because it asserts that the Planning Commission poverty line has been wrong for years because it does not properly adjust for the rise in food prices.

The difference is not merely technical.

A high poverty line means that the federal government has to give state governments more money for various anti-poverty programs. Even the prime minister, Manmohan Singh, acknowledged recently that higher measures of poverty could be tough on government finances, which are already severely strained.

Regardless of whether or not people can buy the requisite calories, data from a national survey taken every five years shows that most Indians are indeed not consuming 2,400 (or 2,100) calories each day, and many are now consuming less than they used to 10 years ago. The poorest 25 percent of Indians now consume 1,624 calories, from 1,683.

Moreover, most of the calories consumed by the poor come from cereals, whereas the diet of the rich includes more meat, vegetables, fruit and other foods with higher nutritional value.

Perhaps even more distressing is the finding by the Supreme Court panel that more than half of the country’s poorest 20 percent of people do not have the cards that identify them as poor and are necessary to access public welfare plans. At the same time, about 17 percent of the richest Indians have such cards.

Riaz Haq said...

Recommended Daily Allowance (RDA) by US Dept of Agriculture (USDA) is for 2000 calories per day with 55% cabs, 30% fat and 15% protein.

According to chartsbin.com, South Asians have the following calorie intake and composition:

India Pakistan

2300 Cal 2250 Cal

71% Carbs 63% Carbs

10% Protein 10% Protein

19% Fat 27% Fat

Riaz Haq said...

Why is fat important in our diets?

Fat has many important functions as a nutrient. It is a concentrated source of energy and provides essential building blocks for the cells in the body. Fat is a carrier for fat-soluble vitamins A, D, E and K and it contains the essential fatty acids (omega 3 and 6). It is also needed by the body to support natural growth, and for the maintenance of healthy skin, reproduction, immune function and development of the brain and visual systems. Dietary fat also improves the taste and texture of food.

http://www.margarine.org.uk/whatisfat-importance.html

A fascinating new study published by the American Journal of Clinical Nutrition shows that dietary fat is necessary for the absorption of nutrients from fruits and vegetables. In the study, people who consumed salads with fat-free salad dressing absorbed far less of the helpful phytonutrients and vitamins from spinach, lettuce, tomatoes and carrots than those who consumed their salads with a salad dressing containing fat.

This is interesting research, but not necessarily all that surprising. We've known for a long time that healthy fats are a critical part of a healthy diet, and that avoiding fats actually causes chronic disease. The key is in choosing the right kind of fats for your diet and making sure you don't overdo the fats, because fats have a very high caloric density and can add far more calories to your meal than you might expect.

In this study, the focus was on eating salads with either fat-free salad dressing or regular salad dressing containing fat in the form of canola oil. However, these findings apply to far more than just eating salads. Every meal that you consume should contain healthy fats, even if only in small portions. What are the healthy fats? Canola oil is what I consider a neutral fat, meaning it's not necessarily a bad fat, but neither is it considered one of the healthier fats. The healthy fats include extra-virgin olive oil, flax seed oil, and fats from plant sources such as nuts, seeds, avocados, and coconuts. These healthy fats should be consumed with every meal. Failure to include these fats in a meal will result in many of the nutrients consumed during the meal not being absorbed by the body. That's because many nutrients are fat-soluble nutrients. Beta carotene, Vitamin D, and Vitamin E are three such nutrients that require fat in order to be absorbed and used by the human body, but there are many other nutrients that also need fats for human metabolism.

----

We now know that this advice from the American Heart Association was, in effect, causing extreme nutritional deficiencies and actually reducing the life span of heart patients rather than helping them. Such is the case with information from many so-called disease organizations, such as the American Heart Association and the American Diabetes Association. Personally, I wouldn't listen to nutritional advice from any association that is so politically motivated and receives funding from pharmaceutical companies, as both of those organizations do.

Learn more: http://www.naturalnews.com/001545.html#ixzz1N2Dr0Jhj

Riaz Haq said...

Overview of Livestock, Dairy, Fisheries & Poultry Sectors in Pakistan:

1 Dairy Sector
With an estimated 33 billion litres of annual milk production from 50 million animals, managed by
over 8 million farming households, Pakistan is the 5th largest milk producing country in the world
Livestock sector contributed approximately 53.2 percent of the agriculture value added and 11.4
percent to national GDP during 2009 – 10
The milk economy in terms of value is over 27% of the total Agriculture sector
Additional potential of 3 billion litres of milk, with a growth rate faster than any other sector
Of the total 33 billion litres of milk produced, 71% is rural based and 29% is urban based
Of the total production, around 3% is processed and marketed through formal channels
40% Supply and Demand gap exists in Pakistan.

2 Livestock Sector
Livestock sector contributed approximately 53.2 percent of the agriculture value added and 11.4
percent to national GDP during 2009?10.
Gross value addition of livestock at current factor cost has increased from Rs. 1304.6 billion
(2008?09) to Rs. 1537.5 billion (2009?10) showing an increase of 17.8 percent as compared to the
previous year.
The population growth, increase in per capita income and export revenue is fuelling the demand for
livestock and livestock products.
Pakistan earned USD717 million from leather exports in FY09 and a meagre USD96 million from meat
exports.
Poultry sector is one of the organized and vibrant segments of agriculture industry of Pakistan.
This sector generates employment (direct/indirect) and income for about 1.5 million people.
Poultry meat contributes 23.8 percent of the total meat production in the country
The meat demand for Pakistan Domestic market is growing at a rate of 2.73% for Beef, 2.90 % for
mutton and 6.10 % for poultry.
This domestic demand is growing to meet the population growth, human need for protein and
calcium, migration of population from rural to urban and the fluctuating growth due to per capita rise
in income.
-------
3 Fisheries Sector

During the period July?March 2009?10 the total marine and inland fish production was estimated
952,735 Million tons out which 667,762 Million tons were marine production and the remaining catch
come from inland waters.
A number of sites have been earmarked on an area of 20,000 acres of land in Districts Thatta &
Badin along the coast.
Immense potential exists to start commercial scale fish/shrimp farming in Sindh.

4 Poultry Sector
Poultry is an important sub – sector of agriculture and has contributed enormously to food production by
playing a vital role in the domestic economy.
Poultry industry can broadly be divided into three
groups, viz. hatchery, poultry farming and feed sectors. This sector generates employment and income
for about 1.5 million people in Pakistan. Its contribution in agriculture growth is 4.81% and in Livestock
growth is 9.84%, whereas, the total poultry meat contributes to 23.8% of the total meat production in
the country.
Pakistan, with a population of 170 Million people, has gone through a sizeable growth in the production
of poultry meat and eggs. Per capita availability went up from 23 in 1991 to 46 eggs in 2009 and poultry
meat availability increased from 1.48kg to 2.88 kg during the same period. In our Country per capita
consumption of meat is only 7 KG and 60-65 eggs annually. Whereas developed world is consuming 41
KG meat and over 300 Eggs per capita per year. According to Industry sources there is capacity of 5,000
Environmental Control Houses in Pakistan and currently only 2,500 houses are working.
The total Poultry population in Pakistan is approximately 610 Million.

Riaz Haq said...

Sugar mills have been one of the vehicles of political patronage in Pakistan.

In an August 2011, Zulfiqa Mirza told the media that "Asif Zardari is so generous that if you gave himn a glass of water he'd give you a sugar mill".

In Mirza's case this is definitely true as he himself admitted that he had received the permit to install his sugar mill with the help of Asif Ali Zardari, according to Daily Times.

In a Friday Times Op Ed in Sept 2011, Najam Sethi wrote that "Mr Mirza owes his great wealth (sugar mills sanctioned during the PPP's two stints in power) and power (his wife is the Speaker of the National Assembly) to Mr Zardari's largesse".

No wonder so many politicians own sugar mills that they dominate the business and control its supply and prices to enrich themselves.

The fact that Pakistanis have a sweet tooth is not lost on the nation's ruling elite, particularly the powerful political families and the Pakistani military. While the military owns Fauji sugar mills, more than 50% of the sugar in Pakistan is produced in sugar mills owned by the most powerful politicians of all major parties and their families.

Multiple sources indicate that the mills owned by President Asif Ali Zardari’s family and the ruling PPP leaders include Ansari Sugar Mills, Mirza Sugar Mills, Pangrio Sugar Mills, Sakrand Sugar Mills and Kiran Sugar Mills. Ashraf Sugar mills is owned by PPP leader and incumbent ZTBL President Ch Zaka Ashraf.

The media reports also indicate Kamalia Sugar Mills and Layyah Sugar Mills are owned by PML-N leaders. Former minister Abbas Sarfaraz is the owner of five out of six sugar mills in the NWFP. Nasrullah Khan Dareshak owns Indus Sugar Mills while Jahangir Khan Tareen has two sugar mills; JDW Sugar Mills and United Sugar Mills. PML-Q leader Anwar Cheema owns National Sugar Mills while Chaudhrys family is or was the owner of Pahrianwali Sugar Mills as it is being heard that they have sold the said mills. Senator Haroon Akhtar Khan owns Tandianwala Sugar Mills while Pattoki Sugar Mills is owned by Mian Mohammad Azhar, former Governor Punjab. PML-F leader Makhdoom Ahmad Mehmood owns Jamaldin Wali Sugar Mills. Chaudhry Muneer owns two mills in Rahimyar Khan district and Ch Pervaiz Elahi and former Minister of State for Foreign Affairs, Khusro Bakhtiar have shares in these mills.

http://www.riazhaq.com/2009/09/solving-pakistans-sugar-crisis.html

Riaz Haq said...

Here's an interesting comparison between the coffee elite of Central America and sugar elite of Pakistan by Dr. Adeel Malik in The News:

In his famous book, Coffee and Power, Jeffrey Paige provides a vivid illustration of how a single commodity, coffee, is sufficient to explain the power structure of Central America. Despite the varying political complexions of its regimes, Central America has one thing in common: they are all ruled by coffee elites. For decades, Central America's coffee elites have thrived on state patronage, rent seeking, and distortion of private markets. As Jeffrey Paige concludes, these elites have generated in this process "unprecedented wealth for the few at the expense of the general impoverishment of the many". Despite this, the coffee elites have been remarkably resilient in Central America, surviving periods of both revolutions and authoritarian rule.

In terms of its links with political power, sugar is Pakistan's parallel for coffee. Sugar industry is Pakistan's second largest agro-based industry. Its linkage with politics, patronage and protection sets it apart from other industries. Available evidence suggests that it is economically inefficient, enjoys one of the highest rates of protection, and is dominated by a small number of political influential owners, making it an excellent illustration of the interconnection between business and politics. The analysis of sugar markets in Pakistan, and their manipulation therefore opens up a fascinating window into how the economic interests of our political elites are strongly entrenched in the current power structure. The operation of sugar markets in Pakistan offers a telling story of how both markets and public policy are routinely captured by vested political interests.


http://thenews.com.pk/TodaysPrintDetail.aspx?ID=198042&Cat=9&dt=9/12/2009

Riaz Haq said...

Here's an excerpt from a Unilever report on ice cream consumption in Pakistan:

0.5 liters consumption per capita but growing at double digit rate

http://www.igisecurities.com.pk/pdf/Unilever_Pakistan_Limited_Initiating_Coverage.pdf

Riaz Haq said...

Pakistani millers are seeking permission from the government to export up to 500,000 tonnes of refined sugar as they are expecting bumper production, according to Dawn news:

Pakistan’s annual sugar consumption is about 4.2 million tonnes, and export of the sweetener has been banned for nearly three years due to reduced output. But this year, the country is expecting about 5 million tonnes from the 2011/12 crop, with carryover stocks of up to 600,000 tonnes, Javed Kayani, chairman of the Pakistan Sugar Mills Association (PSMA), told Reuters.

“Even after meeting domestic needs and maintaining strategic stocks, Pakistan could still export up to 500,000 tonnes of refined sugar, and there will be no shortage in the country,” Kayani said.

“This will also help us make payments to growers and meet our financial obligations in time, as the government is delaying a decision to buy sugar from local mills,” he added.

Government officials were not immediately available to comment.

The state-run Trading Corporation of Pakistan (TCP) on Friday re-issued a tender to buy 200,000 tonnes of white sugar from local mills in a bid to cut cost after domestic prices fell in recent weeks to around 55 rupees ($0.61) per kg from about 70 rupees in November.

The tender was originally issued on Nov. 3. The government buys sugar every year for its strategic reserves and for its subsidy scheme. A growers’ body, Agri Forum Pakistan, has asked the government to either buy sugar from local mills or allow them to export so that they can pay outstanding dues to farmers.

If exports are allowed, Pakistani sugar would add to plentiful global supplies.

ICE raw sugar futures slipped to a 6-1/2-month low on Thursday. March white sugar futures on Liffe lost $1.40 to finish at $596.30 per tonne in modest volume of around 3,550 lots.

Pakistan had to import about 1.2 million tonnes of sugar last year after production fell to 3.1 million tonnes from the 2009/10 crop, when many farmers switched to more profitable crops.

The country, however, produced, 4.1 million tonnes of refined sugar in 2010/11 (July-June) year despite devastating floods in 2010.

http://www.dawn.com/2011/12/16/pakistani-millers-want-sugar-export-ban-lifted-on-plentiful-output.html

Riaz Haq said...

Pakistan's food exports are surging, reports PPI:

ISLAMABAD, (Asia Pulse) - Pakistan's exports of food commodities surged by 22.73 percent during the first five months of the current fiscal year to reach at $1.514 billion, Federal Bureau of Statistics (FBS) reported.
The overall food exports were recorded at 1.514 billion during July-November (2011-12) as compared to the exports of $1.233 billion during July-November (2010-11), according to FBS figures issued.

The food products that contributed to positive growth included fish and fish preparations, exports of which increased from $106.742 million last year to $125.959 million during the first five months of this year, showing an increase of 15.83 per cent.

Exports of fruits also increased by 13.94 per cent from $77.753 million to $88.595 during the period under reviews, showing positive growth of 13.94 per cent, the data revealed.

Exports of vegetables and tobacco increased by 28.47 percent and 27.62 per cent respectively during the period under review.

During the month of November 2011, the food exports witnessed negative growth of 25.85 per cent and 6.93 per cent when compared to the exports of October 2011 and November 2010 respectively.

The overall food exports during November 2011 were recorded at $223.360 million against the exports of $301.246 million in October 2011 and $239.984 million in November 2010, the data revealed.


http://www.lankabusinessonline.com/fullstory.php?nid=152011880

Riaz Haq said...

Pakistan produces 13.67 million tones of fruits and vegetables per annum, according to Online News:

An official told Online on Tuesday out of which about 25 per cent goes waste, between farms to consumers, while only 4 per cent is exported at far 41 per cent lower price compared to world average price.

The horticulture sector contributes about 12 per cent to the national agricultural Gross Domestic Product (GDP) and holds great potential for increasing export of quality horticultural produce, and offering multiple employment opportunities throughout the supply chain, he added.

The official said, “However, its growth & profitability is restrained mainly by lack of proper post harvest management and transport infrastructure. Improving post harvest management infrastructure (grading, packing, storage and transport/cold-chain) will help reduce high post harvest losses, increase production surplus along with improving shelf life and quality of fresh produce, which will help to stabilize prices in domestic markets as well as to substantially boost export to highly lucrative and competitive international markets.”

It is pertinent to mention here that Ministry of Commerce had decided to establish a “Cool Chain System” under “National Trade Corridor Improvement Project”. The Cool Chain project is bound act as a backbone for the development of supply chain infrastructure for horticulture produce.

http://www.onlinenews.com.pk/details.php?id=187430

Riaz Haq said...

"As the green revolution tapered off, a poultry revolution began; in the late 1970s. Ever since, Pakistan has been gnawing away at broiler chicken and there’s no turning back", wrote Punjab's director general of board of investments in a recent Op Ed in Dawn.

In 2011/12 K&N’s expects to produce 80 million layer and broiler chicks, reports thepoultrysite.com.

In the 1960’s and 1970’s, obtaining safe, reliable sources of poultry feed was an insurmountable challenge in Pakistan. This led Khalil to set up his own feed mill to produce feed for K&N’s operations at Karachi in 1971. With the growing need of feed for the integrated production operations in Central Punjab province and Northern areas of the country, a feed mill established by a multi-national company at Lahore, was acquired by K&N’s to take advantage of low-cost feed ingredients available in the Central part of Pakistan.

The growth of commercial poultry production through the decades changed the mindset of consumers towards farm raised broilers and eggs, helped by lower prices and greater availability. Today, Desi chicken and eggs are produced in lower volumes and considered more of a delicacy.

Yet the strength of the live/wet chicken market culture, the negligible overheads of roadside sales – a butcher’s knife costs less than US$1 – and the reassurance of Halal slaughter remain significant influences slowing the uptake of processing, says Adil Sattar.

Practical problems, particularly the limited availability of cool chain facilities and frequent power breakdowns, have to be overcome with production and distribution of processed products inevitably involving high overheads.

"Earlier, within our industry, poultry processing was considered a non-viable poultry business activity as many firms had tried but ended up closing down their operations," says Adil. "At K&N’s, we endeavoured to develop the market, and other companies are now looking to start processing operations."

Today, chicken is the most popular protein source in Pakistan, primarily through the industry’s growth and success leading to lower cost and widespread availability, with per-capita consumption about 7kg (15.4lb) per year. The tradition is to eat chicken at home, always skinless cooked in curries, with rice or barbecued.

Restaurants offer local cuisine including a variety of curries, barbecue dishes and different types of rice, with a number of upmarket cafes and restaurants serving western cuisine and many of the international fast food caterers such as McDonald’s, KFC, Pizza Hut, Nando’s, Hardees and Subway also present.

Riaz Haq said...

Here's a News report on meat consumption in Pakistan:

The consumption of poultry meat increased by 239 percent in 11 years from 322 million tons in 1999/2000 to 767 million tons in 2010/11, but it is still only 0.7 percent of the global poultry production, experts said on Monday.

At a seminar organised by Big Bird to commemorate its 20 years association with the global poultry giant Hubbard pioneer of poultry in Pakistan Dr Yaqoob Bhatti in his paper revealed that the value of poultry infrastructure exceeds Rs300 billion and annual turnover of commercial poultry is Rs40 billion.

With 105 hatcheries, the annual broiler chick production is 820 million, he said, adding that the commercial egg production is 8.690 billion per annum in addition to 3.742 million production of rural eggs.

Pakistan Poultry Association former chairman Abdul Basit said that poultry is the cheapest source of animal protein not only in Pakistan, but the world over. The average daily animal protein consumption in Pakistan is only 17 grams per capita, while the average minimum requirement is 27 grams, he said.

There is a dire need to increase poultry production in the country that has largely grown without helpful government policies or facilitation, said Basit. The industry, for instance, has since long been demanding the government to disallow poultry farm clusters through a law as chicken farms at least 1.5km apart greatly reduce the risk of spread of diseases among various poultry flocks, he said.

He said his concern has to relocate its very large chicken farms each time when place was surrounded with many other farms too close to his farms. He said he has shifted his major high quality grand parent farms to Thar deserts. Dr Mustafa Kamal said that the consumption of mutton has declined rapidly, while that of beef and poultry has increased.

The share of poultry meat increased from 16.4 percent to 24.3 percent, he said, adding that the consumption of mutton declined from 0.649 million tons to 0.616 million tons, showing a fall of 20 percent in total meat consumption share.

Still, he said, Pakistan as a meat eating country produces around 50 percent broiler chickens of those produced in India, which has seven times human population and has a good chance to develop Grand Parent breeding operations, which has an existing capacity of producing eight million parent stocks for domestic as well as for export purposes.

Olvier Behaghel of Hubbard France said that Pakistani poultry improved efficiencies rapidly during the last 20 year that has helped it control the cost. Maturing time of a broiler has reduced during this period from four days to 46 days and from 38 days to 40 days, he said.

The weight gain of the chick at the time of maturity has increased from 1.5-1.7kg to 1.9 to 2kg and feed consumption by the time of maturity has declined from 2.2-2.5kg to 1.7-1.9kg. “Pakistan, he said, is gradually reaching global and Hubbard standards in chicken health, morality and efficiency in productive processes.

http://www.thenews.com.pk/TodaysPrintDetail.aspx?ID=70726&Cat=3

Riaz Haq said...

Here's Daily Times on Pakistan sugar production 2011-12:

The country will produce 4.735 million tonnes of sugar in the crushing season of 2011-12 and the carryover stock of 0.5 million tonnes of sugar will take the total to 5.2 million tonnes. Pakistan Sugar Mills Association (PSMA) members stated this during a meeting of the Sugar Advisory Board held in the Ministry of Industries, which was chaired by the Ministry of Industries additional secretary on Monday.

Trading Corporation of Pakistan chairman, Punjab Food secretary, representatives of Cane Commissioners of Punjab, Sindh and Khyber Pakhtunkhwa, State Bank of Pakistan officials, PSMA members and representatives of the sugarcane growers associations attended the meeting. The representatives of the provinces provided the meeting with the statistics about the sugar produced and the estimated production in this crushing season which will end by around March 20 in Northern Punjab and KP and by March 25 in Southern Punjab and Sindh.

It was informed that Punjab has crushed 2.7 million tonnes of sugar, Sindh 1.027 million tonnes and KP 0.275 million tonnes. Representatives of the PSMA informed that the keeping in view the current average daily production of sugar and the sugarcane available with the growers, Punjab is expected to produce 3.1 million tonnes of sugar, Sindh 1.26 million tonnes and KP 0.375 million tonnes.

The association suggested that the government should procure 0.4 million tonnes of sugar from the domestic market instead of importing the sugar at a higher price. The ministry said that the recommendations of this meeting would be discussed at the higher forum for further decision.


http://www.dailytimes.com.pk/default.asp?page=2012\03\13\story_13-3-2012_pg5_3

Riaz Haq said...

Here's a Dawn report on Pakistan's plan to export surplus sugar:

The government intends to export 400,000 tons of surplus sugar and believes that the performance of the agricultural sector is improving despite natural calamities.

“The good news about surplus sugar was given to President Asif Ali Zardari during a meeting at the presidency by a delegation of the Pakistan Sugar Mills Association led by its chairman Javed A. Kayani,” president’s spokesman Farhatullah Babar said on Thursday.

The PSMA chief said sugar production stood at about 4.7 million tons. After meeting the domestic requirement of 4.2 million tons, about 400,000 tons of sugar is available for export. “Export will enable mill owners to make payments to growers in Khyber Pakhtunkhwa, Punjab and Sindh,” he said.

Sources in the agriculture sector said the country was exporting wheat and rice and sugar would be the third major commodity to be exported. They said the Punjab government was already exporting wheat and the centre was sending the surplus crop to Iran.

President Zardari expressed satisfaction over the sugar production and said: “It is a matter of great satisfaction that despite unprecedented natural calamities the country is not only in a position to meet its requirements but is also poised to export sugar.”

He said the government was committed to working in consultation with the sugar industry to solve its problems. “Only through the pro-active involvement of the business community and industrialists, the continuity of policies could be
ensured,” the president was quoted as saying.

He advised the government to hold a meeting with the PSMA so that its proposal to export sugar could be sent to the Economic Coordination Committee of the cabinet for consideration.


http://dawn.com/2012/05/04/plan-to-export-400000-tons-of-sugar/

Riaz Haq said...

There's a report in ET claiming research at UAF that Pakistanis are now 4 in shorter than in 1960s.

This finding does not appear to be credible.

All anecdotal evidence suggests that most Pakistani children are growing up to be taller than their parents. All one has to do is keep one's eyes open & observe.

The average height in Pakistan of 20 yrs old males is now 5' 6" vs 5' 4" in India. If one is to believe this "research", then one must also believe that the avg height in Pakistan in 1960s was 5' 10'' which is simply untrue based on all known evidence, anecdotal or otherwise.

In addition, if worsening malnutrition were indeed an issue, the life expectancy in Pakistan would not have doubled since independence. Published data shows that life expectancy in Pakistan has jumped from 32 years in 1947 to 67 years in 2009, and per Capita inflation-adjusted PPP income has risen from $766 in 1948 to $2603 in 2009.


http://www.interbasket.net/news/4385/2009/09/average-height-by-country-males-20-years/

http://tribune.com.pk/story/375257/height-of-pakistanis-has-fallen-4-inches-over-50-years-say-experts/

Riaz Haq said...

Here's an excerpt of ET story on Pakistan's commercial dairy business:

Economies of scale were the key to JK Dairies’ strategy, and not just in the number of animals. The company imported some of the finest milk breeds from Australia in order to improve output per animal. And it was smart in terms of the kind of cows it imported too.

Many dairy farmers have made the mistake of simply looking up which cows yield the most amount of milk per lactation and import them into their farms in Pakistan, not realising that most of those breeds are not suited to the Pakistani climate.

JK Dairies imported the Australian Friesian-Sahiwal, a breed that was created by the Australian state of Queensland in the 1960s by crossing the Sahiwal cow (named after the city in Punjab where it is from) and the Friesian breed to produce a new cross-breed that combines the sturdiness of the Sahiwal with the lactation prowess of the Friesian.

The average Sahiwal cow (still common in many parts of the Punjab), produces about 2,270 litres of milk per lactation. The Friesian Sahiwal breed produces over 3,000 litres per lactation, about 32% higher. Since then, the company has been cross-breeding the Friesian and Jersey breeds of cows that are also part of its stock with local breeds to produce better milk-giving animals that are suited to the local environment.

“We can compete with the world only by experimenting with the latest available technologies, and that’s what we are doing,” Tareen said.

JK Dairies employs a lot of foreign staff, particularly from East Asia, since Tareen feels that local universities do not have enough graduates who are familiar with global best practices in agriculture and livestock. In addition, the company does not use fodder, a common local practise and instead uses multi-cut seeds, which not only can be produced year-round but also help the cows enhance their milk production.

The company then markets its milk through various techniques, including retail outlets in Lahore as well as a home delivery service. But the bulk of JK Dairies’ sales go to Nestle Pakistan, the largest food company in the country and the owner of Milkpak, the leading brand of packaged milk.
----------
...Tareen appears highly bullish on the livestock sector, which constitutes about 11% of Pakistan’s GDP and employs about 17% of the workforce, including most of the poorest people in the country. “The livestock sector of Pakistan can singlehandedly became a game changer for our economy.”

Others agree. “If Pakistan were to improve its overall milk yields by just 15%, it would displace New Zealand as the largest exporter of milk in the world,” said Ian Donald, the outgoing CEO of Nestle Pakistan.


tribune.com.pk/story/384253/milk-production-in-pakistans-milk-production-jk-dairies-is-a-front-runner/

Riaz Haq said...

Pakistanis consume over 170 Kg of milk per capita and it's growing, according to FAO.

http://www.fao.org/ag/againfo/programmes/en/pplpi/docarc/wp44_3.pdf

Growing milk consumption can help reduce malnutrition in Pakistan.

Here's a story illustrating the value of milk in reducing malnutrition in Africa:

WFP Executive Director Josette Sheeran kept a promise she made to WFP-supported Rilima health centre last July by giving two cows worth 1,360,000 Frw to help reduce malnutrition among poor communities in the area.

WFP Executive Director Josette Sheeran kept a promise she made to WFP-supported Rilima health centre last July by giving two cows worth 1,360,000 Frw to help reduce malnutrition among poor communities in the area.

The milk produced by the cows will be used to feed severely malnourished children and breast feeding mothers. “The health centre expects to get 50 litres of milk to feed over 200 malnourished children per day,” says Pascal Habyarimana assistant director of the health centre.
Rilima nutrition centre assists more than 37,000 people in the area. WFP provides monthly fortified supplementary food to malnourished children under the age of five years and malnourished pregnant or nursing women.

“Since 2009, more than 20,000 malnourished children have been supported and recovered from malnutrition", says WFP Rwanda Country Director Abdoulaye Balde. "WFP will continue to provide relevant suport to reduce malnutrition among poor communities in Rilima sector”.
Parents and nursing women come to the centre not only to collect fortified food provided by WFP but also to be trained on good nutrition practices. Training is focused mainly on balanced meals, hygiene, disease prevention and family planning.
The idea is that, after receiving assistance from nutritoon centres, parents can become agents for change in their communities with the help of a a trained community health worker.

Local mothers are currently learning how to organize vegetable gardens at home. A garden can be established on a small plot and maintained with waste water from the kitchen. The nutrition centre itself has a model garden and vegetables from it are used for cooking demonstrations.
In partnership with World Vision and Rilima health centre, beneficiaries are encouraged to develop good cooking practice at home and share them with their neighbours.


http://www.wfp.org/stories/wfp-executive-director-donates-cows-reduce-malnutrition-rwanda

Riaz Haq said...

Here's an excerpt from a 2009 Dawn article by Anand Kumar on edible oil consumption in South Asia:

despite being such a huge consumer of edible oil, per capita consumption of vegetable oil is still very low in India, around 12 to 13 kg (it was 10 kg in 2001). In contrast, per capita consumption of edible oil is around 20 kg in Pakistan and China. However, with rapid urbanisation and a burgeoning middle-class, besides growing health consciousness, demand for refined vegetable oil is expected to climb sharply in the future.

http://archives.dawn.com/archives/25464

Riaz Haq said...

Here's another Indian report (2008) on edible oil consumption:

Vegetable oil consumption in the country is continuously
rising and has sharply increased in
the last couple of years to roughly 11.2 kg/head/year. This is still lower than the world average
consumption level of 17.8 kg and that in neighbouring countries like Pakistan (16.1 kg).

The developed western world has a per capita consumption of 44 to 48 kg/year. According to projections from the National Council of Applied Economic Research (NCAER), per capita consumption of edible oils is likely to reach 13.95, 14.83 and 16.17 kg by 2009-2010 if per capita income grows by 4%, 5% and 6% respectively.


http://www.ameft.com/picture/upload/file/08.pdf

Riaz Haq said...

Here's Economic Times' report on Pakistan sugar exports:

NEW DELHI/MUMBAI: Pakistan has allowed the export of an extra 200,000 tonnes of sugar, on top of the 300,000 tonnes already allowed, as the government aims to trim surplus stocks and bolster local prices.

Higher stocks and expectations of robust output next year encouraged the Islamabad government to allow the export of the additional sugar, Ali Raza Bashir, spokesman for the Finance Ministry, said, though the permission was for less than had been sought.

"There was a request to allow (extra) exports of 400,000 tonnes but the cabinet gave its permission for 200,000," Shunaid Qureshi, chairman of the Pakistan Sugar Mills Association, said by telephone.

The move came as neighbour India sealed deals to import about 5,000 tonnes of white sugar, despite expectations of a domestic surplus, as some traders seek to capitalise on lower prices in Pakistan and higher prices in India.

In Pakistan, sugar output in the crop year starting Oct. 1 is likely to remain steady at last year's level of around 4.7 million tonnes, Qureshi said.

The country's sugar consumption is between 4 million tonnes and 4.2 million and it started the 2012/13 year with around 400,000 tonnes of stock, said a dealer in Karachi who declined to be named.

Most sugar so far has gone to Afghanistan, Saudi Arabia and east Africa.

"These countries will again show interest due to lower prices. Millers in Pakistan want cash to start the crushing season ... They can give discounts to world prices," the dealer said.

INDIA BUYS WHITES

A New Delhi-based trader, who did not wish to be named, said: "The (Indian) traders who have contracted imports from Pakistan perhaps found the FOB price of $545 per tonne attractive enough to buy.

"They stand to gain $15 to $20 a tonne after paying a duty of 10 percent," the trader added.

The sugar price in western India is around $680 per tonne, while in northern and eastern parts of the country it is as high as $720.

India, the world's top consumer and the biggest producer behind Brazil, has been an exporter for the past two years. Exports in the year to September 2012 totalled 3.3 million tonnes.

Traders in India, which levies a 10 percent tax on sugar imports, have booked whites from Pakistan for delivery at the eastern Haldia port, a second Indian trader said.

India is expected to have a small exportable surplus in 2012/13, though higher production costs could make it difficult to find buyers at prices acceptable to mills.

Last month, Indian mills signed deals to buy up to 450,000 tonnes of Brazilian raw sugar because of the attractive gap between domestic and overseas prices.

The strengthening Indian rupee and a wide gap between Indian and Pakistani prices made these deals attractive, said a Mumbai-based trader with a global trading firm.

India could buy more for delivery in October and November to meet higher festival demand, traders said.


http://economictimes.indiatimes.com/news/economy/foreign-trade/pakistan-allows-more-sugar-exports-india-to-import-5000-tonnes/articleshow/16673077.cms

Riaz Haq said...

Here's a Fresh Plaza news report on fruits and vegetables production in Pakistan:

Pakistan produces over 14 million tonnes of fruits and vegetables of which almost one-third is wasted and never reaches the consumer. High post-harvest losses not only lower incomes of producers and traders, but also reduce the quantity available in local market as well as for export. Despite large production, our fresh produce exports are negligible (three per cent) and also fetch lower prices in international markets. So far Pakistani exporters have not been able to penetrate into high end supermarket chains, which account for about 80 per cent of the fruits and vegetables sales in the EU and other developed countries. Mango export earns about $24 million annually and around 60-70 per cent of good quality varieties is exported to the Middle East and 15-16 per cent to Europe.

The export of fresh produce, particularly mango is limited by enormous cost of air freight as compared to sea freight. The interest in sea freighting of mangoes is growing and probably it is the only commercially viable option for export to distant places in the future. However, it needs extended time and specific protocols to be developed for maintaining fruit quality, which is only possible using Controlled Atmosphere (CA) Technology. Mangoes from South America are being successfully shipped to the EU using CA Technology. Looking at the need and demand of the sector, Punjab Agricultural Research Board (PARB) initiated a project on “Exploiting Control Atmosphere Technology potential for extended storage and shipping of fresh produce to international markets”. The project was managed by Dr Aman Ullah Malik, Professor of Horticulture, University of Agriculture Faisalabad (UAF) to increase shelf life of fresh vegetables and fruits for the export to distant markets.

The project was executed with collaboration of National Institute of Food Science and Technology (NIFS&T), Plant Pathology department of UAF and METRO Cash & Carry Pakistan.The specific problems addressed were: optimum CA-conditions for different fruits and vegetables; extension of shelf life and maintenance of quality of mangoes and facilitating sea-freighting for reducing cost of shipment to high end markets. Chief Executive PARB Dr Mubarik Ali says the successful establishment of the SOP for CA technology for fresh produce would greatly benefit exporters in future”. It will generate a good return of money invested on research, enhance our exports and create sound recognition for Pakistani fresh products in international markets.
------------
Dr Amanullah said the usefulness of this project has been demonstrated by arranging seminars, trainings, workshops, meetings and visits for the local growers/ store keepers/ cold store operators/ traders and exporters. Another remarkable achievement is publication of two research papers in the 7th International Post-harvest Symposium in Malaysia. A modern Controlled Atmosphere R & D infrastructure has been developed at Institute of Horticultural Sciences to meet the long-term national needs.


http://www.freshplaza.com/news_detail.asp?id=102535

Riaz Haq said...

Here's a Bloomberg story on Pakistan govt's politically motivated decision to export more sugar:

A shipping subsidy and lower excise tax linked to the export of as much as 1.2 million metric tons of sugar by Pakistan may lead to low inventory and high domestic prices, a unit of the U.S. Department of Agriculture said.

The decision by Pakistan’s Economic Coordination Committee of the cabinet and the Federal Board of Revenue “is being heavily criticized as a politically motivated move by the government to garner support from the sugar industry in the upcoming elections,” the USDA’s Foreign Agricultural Service said in a report posted today on its website.

Stockpiles may drop to a “precariously low level” of 400,000 tons, down from an average of 1 million tons in the past five years, according to the report.

On March 6, the coordination committee approved an inland freight subsidy of about $18 a ton on exports of as much as 1.2 million tons after previously setting the quota at 895,000, according to the report. The federal excise duty on domestic sales was lowered to 0.5 percent from 8 percent to provide an increased incentive to export, according to the report.

“The government efforts to increase the competitiveness of Pakistani sugar in the international market by means of providing direct payment to millers for export could be a violation” of World Trade Organization obligations under an agriculture accord, according to the report.

The government of President Asif Ali Zardari became the first civilian administration to complete its full term. General elections are scheduled for May.


http://www.bloomberg.com/news/2013-03-25/pakistan-sugar-policy-may-cut-local-supply-usda-fas-says.html

Riaz Haq said...

Here's a News story on sugar mills co-generation potentially adding 1500-3000 MW of electricity into Pakistan's national grid:

KARACHI: In order to take advantage of the incentives offered by the government of Pakistan and to integrate the expansion project for future mill operations, two sugar mills in Sindh have propose to implement co-generation power projects, official sources said.

Ranipur Sugar Mill and Chamber Sugar Mill have submitted their applications with the National Electric Power Regulatory Authority (Nepra) for grant of generation licence for cumulative generation of 32MW.

The Economic Coordination Committee (ECC) of the Cabinet in its meeting held on March 6, 2013, had approved the framework for power cogeneration 2013 bagasse and biomass as an addendum to the Renewable Energy Policy 2006. This framework is effective for all high pressure cogeneration projects, utilising bagasse and biomass, the officials said.

Nepra had already approved Rs10.50 per unit as the upfront tariff for power generation through sugar mills by utilising sugarcane bagasse.

According to Nepra spokesman, this upfront tariff has been approved to encourage sugar mills to generate around 1,500 megawatts on fast-track basis.

The applicants said, at present, hydel generation is costing Rs2.50 per unit, generation through natural gas is costing around Rs5 per unit, thermal generation from Rs14 to Rs18 per unit and electricity generated through diesel is costing Rs23 to Rs28 per unit.

The approval of upfront tariff for sugar mills will encourage sugar mills to plan their investment in this new sector for steering the country out of the power crisis. The government plans to generate around 3,000MW of cheaper electricity through sugarcane bagasse on fast-track basis and investors will be facilitated and encouraged, the official said.

Necessary amendments will also be made in the existing co-generation and renewable energy policies to make it simplified and investor-friendly.

Pakistan is the fifth largest producer of sugarcane with the production of 50 million tons of sugarcane annually, yielding over 10 million tons of bagasse.

Power generation from bagasse will not only reduce the furnace oil import but also save Rs33 billion to Rs49 billion worth of foreign exchange per annum.

The country has 87 sugar mills with the capacity to generate 3,000MW from bagasse in winter season.

Currently, seven sugar mills sell their surplus power to government, including Layyah Sugar Mills with an installed capacity of 9.2MW, exports 4MW; Hamza Sugar Mills operates 23.6MW plant, whereas Shakarganj Sugar Mills operates a 20MW co-generation power plant.

Al-Noor Sugar Mills generates 21.8MW and now plans to increase its capacity to 36.8MW. Rahim Yar Khan Sugar Mills generates 18MW and sells 10MW. Likewise, Al-Moiz Sugar Mills generates 27MW and exports 15MW, while JDW Sugar Mills generates 22MW with a surplus of 10MW.


http://www.thenews.com.pk/Todays-News-3-226623-Sugar-mills-opting-for-co-generation-power-projects

Riaz Haq said...

Benoist Bazin, Head of Section, Delegation of the European Union (EU) to Pakistan on Thursday inaugurated the EU-funded 'High Pressure Cogeneration for sugar sector in Pakistan (HP Cogen-Pak)' under the EU SWITCH ASIA Programme. The programme will support the local sugar sector to upgrade towards high pressure boiler technology and enable them to export electricity to the national grid.

"This programme is focusing on providing support to the sugar sector, financial sector, technology providers and the public sector in popularising High Pressure Cogeneration Technology," said Bazin during his keynote speech at the ceremony. "The programme aims at achieving this by supporting sugar mills through technology standardisation, enabling access to finance, and mobilising relevant public sector authorities.

Given the background of electricity supply constraint that Pakistan is facing these days, Bazin added that promotion of High Pressure Cogeneration would promote not only energy security of Pakistan, but also generate electricity from renewable fuels.

Highlighting the various activities, Omar Malik, Project Director of HP Cogen-Pak project informed the participants that the project was currently working with 35 sugar mills, 14 financial institutions and five technology providers. Seven bankable feasibility studies are already underway. Need assessment of financial sector is in the pipeline while capacity building of Pakistani boiler manufactures is also expected to start in December 2014.

The event was attended by representatives of Ministry of Water and Power, National Electric Power Regulatory Authority, Private Power Infrastructure Board, Alternative Energy Development Board, State Bank of Pakistan, Climate Change Division, Pakistani boiler manufacturers and sugar mill representatives.

http://www.brecorder.com/agriculture-a-allied/183/1238159/

Riaz Haq said...

Highlighting various activities, HP Cogen-Pak Project Director Omar Malik said the programme is currently working in collaboration with 35 sugar, 14 financial institutions and five technology providers, while seven bankable feasibility studies are already under way. Assessment for the pipeline and capacity building of Pakistani boiler manufacturers is also expected to start in December this year.
While talking to The Express Tribune, Malik said that it is to promote sustainable production of energy for export of surplus electrical power to the national grid through replication of existing technologies in the sugar sector.
“We are also trying to mobilise relevant public sector authorities for the formulation of a regulatory regime for bagasse based power projects,” he said. “Training of technical staff of sugar mills on standardised design and technology selection is also part of the process.”
The event was attended by representatives of the Ministry of Water and Power, National Electric Power Regulatory Authority, Private Power Infrastructure Board, Alternative Energy Development Board, State Bank of Pakistan, Climate Change Division, Pakistani boiler manufacturers and sugar mill representatives.
Pakistan’s sugar sector has an annual availability of 4.4 million metric tons of bagasse, sugar mill waste.
To generate heat and electricity for its energy needs, sugar sector is using inefficient low pressure cogeneration system, consuming 46% more bagasse compared to the High Pressure Cogeneration.

http://tribune.com.pk/story/783866/boiler-technology-sweet-way-for-sugar-sector-promotion/

Riaz Haq said...

KARACHI: The National Electric Power Regulatory Authority (Nepra) has awarded licences to two sugar mill-owners for setting up bagasse-based power generation in Sindh with a cumulative capacity of 45MW, officials said on Thursday.

The licences have been issued to Mehran Sugar Mills Limited for its 14.06MW bagasse-based generation facility in Tando Allahyar and Alliance Sugar Mills (Pvt) Limited for its 30MW co-generation plant in Ghotki, they said.

The Economic Coordination Committee (ECC) of the Cabinet in its meeting held on March 6, 2013, had approved the framework for power co-generation 2013 bagasse and biomass, as an addendum to the Renewable Energy Policy 2006.

This framework is effective for all high pressure co-generation projects, utilising bagasse and biomass, the officials said.

The National Electric Power Regulatory Authority had already approved Rs10.50 per unit as the upfront tariff for the power generation through sugar mills by utilising sugarcane bagasse.

This upfront tariff has been approved to encourage sugar mills to generate around 1,500MW on fast-track basis.

At present, hydel generation is costing Rs2.50 per unit, generation through natural gas is costing around Rs5 per unit, thermal generation from Rs14 to Rs18 per unit and electricity generated through diesel is costing Rs23 to Rs28 per unit, the officials said.

The approval of the upfront tariff for sugar mills will encourage them to plan their investment in this new sector for steering the country out of the power crisis, the officials said, adding, the government plans to generate around 3,000MW cheaper electricity through sugarcane bagasse on fast-track basis and investors will be facilitated and encouraged.

Necessary amendments will also be made to the existing co-generation and renewable energy policies to make it simplified and investor-friendly, they said.

Pakistan is the fifth largest producer of sugarcane with the production of 50 million tons of sugarcane annually, yielding over 10 million tons of bagasse.

Power generation from bagasse will not only reduce the furnace oil import, but also save Rs33 billion to Rs49 billion worth of foreign exchange per annum, the officials said.

The country has 87 sugar mills with the capacity to generate 3,000MW from bagasse in winter season.

http://www.thenews.com.pk/Todays-News-3-277319-Sugar-mill-owners-awarded-power-generation-licences

Riaz Haq said...

Dr. Ishrat Husain on deregulation in Pakistan

As in most debates in Pakistan there are sharply polarised views on the regulation and deregulation of private-sector activities. Some advocate re­gulation by the state as an effective tool to curb the market’s excesses. Others think markets should be left to themselves and the state should have few regulations.

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Financial markets have some unique features that are missing in product and factor markets. This distinction is lost sight of in this polarised debate. Shareholders’ equity in bank balance sheets ranges from 8pc to 10pc. The banks are highly leveraged as they raise 90pc to 92pc of their money from depositors and borrowings from other financial institutions and markets. This high leverage effect magnifies both upside gains and downside risks, inducing the bank management, whose compensations are linked to short-term profits, to resort to excessive risk-taking.

The upside gains of the leveraged bets accrue mainly to shareholders and managers, while downside losses are so heavy that the state has to bail them out using taxpayers’ money. This asymmetric treatment of the risks incurred and the accrual of rewards places a heavy responsibility on regulators to ensure that shareholders, and not taxpayers, bear the brunt of excessive risk-taking. Therefore, given the market’s structure in the financial sector, state regulation is not only justifiable but desirable.
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The same logic cannot be applied to the market for goods and inputs. If a farmer’s income is determined by forces outside his control he has no incentive for higher production and improved productivity. In Pakistan, the government controls wheat prices, and fertiliser prices are subsidised, largely benefiting big farmers. Irrigation water is allocated in a discriminatory manner inducing inefficiency. The food department procures wheat at official prices from those who are influential or who grease their palms. Under such stringent price and quantity regulation why should the average farmer maximise his efforts to produce more?

The differential in the yield between a progressive and an average farmer ranges between 50pc to 70pc. If there was deregulation of prices and quantity (except for a certain amount of reserves), wheat production could jump to at least 30 million tons — a conservative estimate.

Contrast this with the deregulated milk market. Except for hygiene regulations, milk supply and demand determine the prices. The fastest growth in the average farmer’s cash income has taken place through money from milk. For other non-cereal products, market committees that are inefficient and operate in collusion with officials of the agriculture department have distorted prices.

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The sugar market has, at different times, faced waves of regulation, fixed cane price and opaque market interventions. The government steps in when there is surplus production; it procures from local sugar mills and sells in international markets at loss.

In times of shortages, the government imports sugar, and sells at a price mostly to the mills’ advantage. Efficient and inefficient mills are treated equally; there is no pressure on the latter to exit the market as they are insulated from facing the market test. Thus over-regulation, procurement by the government at non-market prices and intrusive and discriminatory practices have tilted the sugar market against the consumers. Here deregulation is badly needed.

In the manufacturing sector, as many as 40 agencies and departments of the federal, provincial and local governments are involved in giving clearances, no-objection certificates, grants of permits, licences, etc. Most factory owners have reconciled to this situation, making monthly payments to functionaries of these departments commensurate with their nuisance value. A labour inspector can arbitrarily shut down a factory, causing enormous loss to the owners, for whom the easy course is to keep the inspector contented.

http://www.dawn.com/news/1144559/deregulating-the-economy