Thursday, November 14, 2013

Pakistan Leads South Asia in Agriculture Value Addition

Livestock revolution enabled Pakistan to significantly raise agriculture productivity and rural incomes in 1980s. Economic activity in dairy, meat and poultry sectors now accounts for just over 50% of the nation's total agricultural output. The result is that per capita value added to agriculture in Pakistan is almost twice as much as that in Bangladesh and India.

Adding value is the process of changing or transforming a product from its original state to a more valuable state, according to Professor Mike Boland of Kansas State University. The professor explains how it applies to agriculture as follows:

"Many raw commodities have intrinsic value in their original state. For example, field corn grown, harvested and stored on a farm and then fed to livestock on that farm has value. In fact, value usually is added by feeding it to an animal, which transforms the corn into animal protein or meat. The value of a changed product is added value, such as processing wheat into flour. It is important to identify the value-added activities that will support the necessary investment in research, processing and marketing. The application of biotechnology, the engineering of food from raw products to the consumers and the restructuring of the distribution system to and from the producer all provide opportunities for adding value."

Crop Yield Comparison. Source: Kleffman Group

Although Pakistan's value added to agriculture is high for its region, it has been essentially flat since mid-1990s. It also lags significantly behind developing countries in other parts of the world. For example, per capita worker productivity in North Africa and the Middle East is more than twice that of Pakistan while in Latin America it is more than three times higher.

Agriculture Value Added Per Capita in Constant 2000 US$--Source: World Bank
There are lots of opportunities for Pakistan to reach the levels of value addition already achieved in Middle East, North Africa and Latin America.These range from building infrastructure to reduce losses to fuller utilization of animals and crops for producing valuable products.  Value addition through infrastructure development includes storage and transportation facilities for crops, dairy and meat to cut spoilage. Other opportunities to add value include better processing of  sugarcane waste, rice bran, animal hides and bones, hot treatment, grading and packaging of fruits, vegetables and fish, etc.

Agriculture Value Added Per Capita in South Asia, North Africa and Latin America--Source: World Bank
Pakistan's growing middle class has increased demand for dairy, meat and various branded and processed food products. Engro, Nestle, Unilever and other food giants are working with family farms and supermarket chains like Makro, Hyperstar and Metro Cash and Carry to respond to it by setting up modern supply chains.

Agriculture Value Addition in South Asia. Source: World Bank


Value Added Agriculture Per Worker. Source: World Bank

Growth of value added agriculture in Pakistan has helped the nation's rural economy. It has raised incomes and reduced rural poverty by creating more higher wage jobs. It has had a salutary effect on the lives of the rural poor in terms of their ability to afford better healthcare, nutrition and education. Doing more to promote value added agriculture can accelerate such improvements for the majority of Pakistanis who engage in agriculture and textiles and still live in rural areas.

Related Links:

Haq's Musings

Most Indians and Pakistanis Employed in Agriculture and Textiles

Pakistan Among Top Meat and Dairy Consuming Nations

Upwardly Mobile Pakistan

Comparing Pakistan and Bangladesh

FMCG Boom in Pakistan

Agricultural Growth in India, Pakistan and Bangladesh

Pakistan's Rural Economic Survey

Pakistan's KSE Outperforms BRIC Exchanges in 2010

High Cost of Failure to Aid Flood Victims

Karachi Tops Mumbai in Stock Performance

India and Pakistan Contrasted in 2010

Pakistan's Decade 1999-2009

Musharraf's Economic Legacy

World Bank Report on Rural Poverty in Pakistan

USAID Report on Pakistan Food & Agriculture

Copper, Gold Deposits Worth $500 Billion at Reko Diq, Pakistan

China's Trade and Investment in South Asia

India's Twin Deficits

Pakistan's Economy 2008-2010

30 comments:

Naveen said...

Wrong. Its Maldives.
that leads South Asia by miles.

Riaz Haq said...

Naveen: "Wrong. Its Maldives.
that leads South Asia by miles."

Yes, Maldives is an outlier in value added agriculture. But it's a tiny island nation(just $2b gdp) compared to big South Asian nations.

Anonymous said...

Are there only 3 countries in South Asia?

Riaz Haq said...

Anon: "Are there only 3 countries in South Asia?"

India, Pakistan and Bangladesh are the three largest countries in South Asia. Others are Afghanistan, Bhutan, Maldives, Nepal and Sri Lanka. Only Maldives has higher value added agriculture than Pakistan but it's a tiny island nation with gdp of just $2 billion.

Hopewins said...

Agricultural output in South-Asia has been directly linked to the massive increase in irrigation of Greater Punjab that was generously financed by the US in the 60s (the Bread Basket theory).

So you should compare Indian Punjab to our Punjab. That would give you a better idea of how the two sides are doing.

Our Punjab is 60% of our 180M population. Their Punjab is only 4% of their 1200M population. So comparing India to our country in agricultural output makes little sense.

Riaz Haq said...

HWJ: "So you should compare Indian Punjab to our Punjab. That would give you a better idea of how the two sides are doing."

Do you have value added agriculture figures for Indian Punjab. Please do share if you do.

Riaz Haq said...

Here's a book review of "How Asia Works" by Amb Maleeha Lodhi published in The News:

An important new book explains why some countries have become economic tigers in East Asia while others are relative failures or paper tigers. ‘How Asia Works’ by Joe Studwell is a bold and insightful work that is essential reading for anyone interested in understanding the ingredients for economic success in this continent.

It challenges much conventional wisdom in the development debate. Most significantly the book questions key tenets of the so-called Washington consensus, which prescribes free market ‘solutions’ for all economies regardless of their level of development. Studwell establishes that a nation’s development destiny is shaped most decisively by government action and policies. History, writes the author, shows that markets are created, shaped and re-shaped by political power.

---------------

At the very outset, Studwell identifies three critical interventions that successful east-Asian countries and China (after 1978) employed to achieve accelerated economic development. The first, “often ignored”, and now “off the political agenda” in developing countries, is land reform. This restructured agriculture into highly labour-intensive household farming. In the early phase of development, with the necessary institutional support, this helped to generate a surplus, create markets and unlock great social mobility.

The second intervention, as countries cannot sustain growth only on agriculture and must transition to the next phase, is to direct entrepreneurs and investment to industrial manufacturing. Manufacturing allows for trade and technology learning. And trade, says the author, is essential for rapid economic development. Studwell then demonstrates – while challenging the champions of free trade – how nurturing and protection, along with instituting “export discipline”, builds the capacity to compete globally. Manufacturing policy is a key determinant of success he says, as an infant industry strategy offers the quickest route to restructuring the economy towards more value-added activities.

Holding that development is quintessentially a political undertaking, the author sees the relationship between the state and private entrepreneurs as a critical variable. History, he writes, teaches that governments should not run everything themselves. But governments have to use their power and the right policy tools to make private entrepreneurs do what industrial development requires.

The third intervention necessary for accelerated development is in the financial sector, aimed at directing capital initially to intensive, small scale agriculture and to manufacturing rather than services. Studwell argues persuasively that it was the close alignment of finance with agriculture and industrial policy objectives that produced north-east Asia’s economic success.

Detailing the role of financial policy, he illustrates how premature bank deregulation exacted a high price in Thailand and Indonesia. China, on the other hand, and other north-east Asian countries resisted that, instead using financial management to serve development needs and an accelerated economic learning process.



http://www.thenews.com.pk/Todays-News-9-211468-Asian-tigers-and-paper-tigers

Anonymous said...

Riaz, India may well be facing huge problems in its agricultural production. Education has made agricultural work unattractive for many rural youth. Tracts of fertile land are untended due to very high labor costs; the threat of usurpation if land is leased out to tenants. Lots of agricultural land is left untended with the view to selling it to real estate developers.
Unplanned urban and industrial expansion into fertile agro zones - as in Mumbai and Bengaluru (Bangalore) for example, has seen the loss of thousands of hectares of paddy fields, coconut and mango groves, for example.

Riaz Haq said...

Anon: "Education has made agricultural work unattractive for many rural youth. Tracts of fertile land are untended due to very high labor costs"

Agriculture and textiles are the largest employers in both India and Pakistan.

About 60% of India's and 42% of Pakistan's labor force are engaged in agriculture, according to World Bank.

About 60% of India's workforce is in agriculture. Textile industry is the second biggest employer, accounting for a fifth of India’s exports, and employs almost 10 percent of India’s workforce, or some 35 million people, and has the potential to add another 12 million new jobs --dwarfing the 1-2 million jobs created by the much-heralded IT and BPO sector, according to a World Bank report.

Agriculture in Pakistan accounts for 19.4% of GDP and 42% of labor force, followed by services providing 53.4% of GDP and 38% employment, with the remainder 27.2% of GDP and 20% workers in manufacturing sector. Over half of Pakistan's manufacturing jobs are in the textile sector, making it the second biggest employer after agriculture.

The dire situation in India's agriculture sector has been epitomized by over 200,000 farmers' suicides in the last decade. And the rising Indian rupee is now hurting India's textile sector by making its exports more expensive in the world market.

http://www.riazhaq.com/2010/10/agriculture-andtextiles-employ-most.html

Anonymous said...

And the rising Indian rupee is now hurting India's textile sector by making its exports more expensive in the world market.

A bit out of date.The rupee is currently near alltime lows 63 to the USD and exports are booming.

PAkistan OTOH has not had an export boom with its much less valued PKR .Why is that?

Riaz Haq said...

Anon: "PAkistan OTOH has not had an export boom with its much less valued PKR .Why is that?"

Indian exports boom has helped only a small fraction of India's population employed in IT and manufacturing sector.

http://www.yourarticlelibrary.com/economics/what-are-the-different-compositions-of-exports/2685/

Most of the Indian exports increase has been in non-textile sectors which employ a lot fewer people than textiles.

Pakistani exports have more than tripled from $8.5 billion in 2000 to $26 billion in 2012.

http://www.indexmundi.com/g/g.aspx?c=pk&v=85

Anonymous said...

Anonymous said...

Riaz, India may well be facing huge problems in its agricultural production. Education has made agricultural work unattractive for many rural youth. Tracts of fertile land are untended due to very high labor costs; the threat of usurpation if land is leased out to tenants. Lots of agricultural land is left untended with the view to selling it to real estate developers.
Unplanned urban and industrial expansion into fertile agro zones - as in Mumbai and Bengaluru (Bangalore) for example, has seen the loss of thousands of hectares of paddy fields, coconut and mango groves, for example.

November 16, 2013 at 12:23 AM
---------------------------------

And India also faces an alarming reduction in freshwater supplies.
Sewage discharge into rivers and the dumping of industrial effluents into same even by so called blue chip companies.

Riaz Haq said...

Here's an Express Tribune story on educating Pakistani workers on value added agriculture:

The scope of corporate farming in Pakistan is growing, showing even greater potential for this sector in the coming years, mainly due to product diversification from many local and multinationals in food, beverages and dairy segments. But are the human resources of Pakistan related to this particular sector ready to convert threats in to opportunities, in terms of technology, innovation, researches.
For local companies and corporate farmers, finding such human resources might be a little tough, unlike multinationals which can rely on the transfer of knowledge from their global headquarters. Take for example the recent diversifications in the juices and dairy sectors in the past few years, from local and multinational consumer goods and food companies. Although these companies are now making profits, they are perturbed by the increasing gap of knowledge and human resources.
A few universities and government/NGO-supported institutions are working in this sector, providing basic and slightly advanced education and field training to students and farmers.
“There are basically two groups at the business level in this sector, corporate farmers who don’t know how to improve productivity and make greater financial gains; and those who know about business but don’t know much about practical farming,” said Magdi Batato, Nestle Pakistan’s Managing Director, while talking with The Express Tribune. Pakistan as an agrarian economy needs to develop a class of professionals educated and trained in the relevant discipline, he added.
One such initiative however has already been taken by Lahore university of Management Sciences (Lums) with collaborations of Nestle Pakistan. Economic development, poverty alleviation, enhancing productivity, managing supply chain issues, and research for further innovations through agribusiness is what the market wants. The success of the initiative taken by Lums and Nestle might force other business schools to introduce similar or more up to date courses.
“Such courses/certifications will have a cascading effect on the market as more entrepreneurs will be formed which will deliver much better then now”, said Doctor Arif Nazir Butt, Dean Suleman Dawood School of Business, Lums.
Companies related to dairy segments like Nestle, Engro Foods, Haleeb Foods are all contributing positively in rural economy by involving local dairy farmers in their network. Many locals have started successful modern dairy farming, JDW dairies among which is a prominent example.
Companies have now started projects of modern orchard farms for their survival. This once again is providing opportunities for locals to start modern orchard and tunnel farming. This portfolio would benefit low line farmers in future in terms of technical assistance, education, innovation, though the high price factor which the end consumer will pay to buy such products, as in case of dairy segment, is another story.


http://tribune.com.pk/story/663433/agri-business-educating-executives-key-towards-growth/

Riaz Haq said...

Here's a report on growth of beekeeping industry in Pakistan's Potohar region:

Battered by erratic weather patterns with decreasing and delayed rainfall, thousands of farmers in Pakistan’s northeast Potohar plateau are moving to beekeeping as an alternative source of livelihood that is less vulnerable to climate change.

A single flood, no or deficient rain in one cropping season, or lack of water in the river system due to delayed glacial melt can ruin farmers’ livelihoods. “However, training farmers in alternative climate-resilient livelihoods like beekeeping can go a long way in making farming communities resilient to climate change impacts,” said Dr. Zafar Iqbal, former chairperson of the National Disaster Management Authority, in Pakistan’s capital Islamabad.

The fact that many farmers find beekeeping a more profitable alternative and therefore reduce farming or completely shun it has its own impact on food security. But it helped many households survive in Potohar – a sprawling region between the Indus and the Jhelum rivers and stretching up to the foothills of the Himalayas. Around 70 per cent of rain in the region is received between July and August.

“Because of erratic weather patterns and unreliable crop harvests, our income had become irregular and was declining. But the beehives give us regular income,” said Hakim Khan, a beekeeper in Ghool village of Chakwal district, about 90 kilometres southeast of Islamabad.

The district — one of the four in Potohar along with Attock, Rawalpindi and Jhelum – is known for its exportable quality of groundnuts and stretches over 6,500 square kilometres of semi-arid terrain. It has a population of nearly 1.5 million and relies entirely on the rains for cultivation of crops.

It was known as an area for abundant rain. However, the situation has changed over the years. Until 1998, it would receive around 1,200 millometres rainfall annually. This has come down to less than 900 millometres, according to the Pakistan Meteorological Department.
----------
In this scenario, beekeeping has been a saviour for many families in the area. Hakim Khan from Ghool, for instance, survived the poor harvest by taking to beekeeping. He also continues to grow groundnut.

“The additional income from beekeeping has helped me survive crop losses. I adopted beekeeping three years ago to cover up income losses from the groundnut crop,” Khan said while examining the wooden bee boxes on a plot adjacent to his groundnut field.

He was amongst the lucky ones trained in beekeeping — producing honey, hives and wax — by the Pakistan Poverty Alleviation Fund (PPAF) under the Drought Mitigation and Preparedness Project. Farmers in various villages of Chakwal district have also been provided with financial aid.

In a ripple effect, Khan has taught other farmers about beekeeping and its benefits. “I learnt about the economic benefits of less labour and investment (in beekeeping)… Now, more and more farmers are approaching to me to learn about beekeeping,” he told thethirdpole.net.

Citing an example, he said a groundnut farmer-turned-beekeeper who purchased 10 wooden boxes of hives for Pakistani Rs.34,000 (about US$347) three years ago now has 90 boxes worth Pakistani Rs.1,020,000 (about US$10,400).


http://www.eco-business.com/news/pakistans-farmers-counter-climate-change-beekeeping/

Riaz Haq said...

#MIT and #Harvard Graduates Helping #Pakistan Farmers Make Big Money! http://pixr8.com/ricult/

Ricult is an endeavor by a US-based start-up founded by 4 MIT and 1 Harvard graduates. They help smallholder farmers (< 10 acres holding) reduce information asymmetry and work their way out of poverty to become more impactful economic actors. At the heart of their concept is a virtual marketplace which allows farmers to procure agriculture inputs (seed, fertilizers, pesticides etc.), access interest-free/low interest based loans transparently and sell their produce directly to buyers (processing plants, corporate organizations etc.) directly from the Ricult marketplace.



Founders

Usman Javaid, (CEO) is an MIT alumnus with 15 years of experience in Telecom, Mobile Banking, Mobile Agriculture in Pakistan and Bangladesh. Jonathan Stoller, the CTO pursued his Masters in Computer Science from MIT and worked for 4 years with Google, Microsoft, Dow Jones. Aukrit Unahalekhaka handles the product at Ricult is also an MIT alumnus belongs to a family of farmers in Thailand. He worked with Accenture & Cisco in the US before taking the entrepreneurial plunge. Philip Huppe who takes care of Social Development is a Harvard alumnus. He worked with World Relief, Palo Alto Networks, and Accenture before joining hands with MIT alumni to start-up!



PROCESS STORY:

Their first pilot for 400 farmers is underway in Kasur area of Pakistan, where they have signed up leading agriculture organizations to supply products on the Ricult Marketplace. “The idea is to validate certain hypotheses regarding technology adoption, impact on farm profitability, technology sustainability and the reaction of local middlemen. Based on the results of the pilot, we plan to commercially launch in Pakistan, followed by China, Thailand, and Slovenia,” says the Harvard graduate.

The marketplace connects farmers to farm input sellers; farm produce buyers, bank creditors, insurers, vetinary services, farm advisory services and everything that can help them have better farming results. “But this is not just a marketplace for farmers. We believe in building strong relationships with our local farmers and ensuring that they have easy access to bigger markets, quality products, enhanced profitability and hence a better future,” says Usman.
We asked the founders if they doubted what they were doing, and they said, “Oh yes, many times you have doubts about what you are doing. Entrepreneurship is a roller coaster of emotions – it’s not for the weak hearted nor is it for the people who are impatient for results. You have to bide your time, one step at a time and take each day as it comes.”

All the co-founders started up with a passion for solving difficult social problems through the use of technology. “This is how all of us came together and this is what binds us as a team. We like solving hard but real problems that would make the world a better place,” says Usman. They are partnering with various multinational and local organizations to facilitate the growth of Ricult. Currently a team of 10 people, the start-up is not funded.

As a message for future entrepreneurs, Jonathan says, “Live your passion and your dreams. Be focused and consistent, and you will reach your destination.”

Riaz Haq said...

PARC approves 16 projects worth Rs1.2bn
http://www.dawn.com/news/1296963/parc-approves-16-projects-worth-rs12bn

The Pakistan Agricultural Research Council (PARC) has approved 16 research projects with a total budget of Rs1.2 billion for 2016-17.

In addition, the PARC board of governors approved Rs194 million for projects under international cooperation and Rs183m for Agriculture Linkage Programme (ALP).

Talking to Dawn on Thursday, National Agricultural Research Centre (NARC) Director General, Dr Mohammad Azeem Khan said a hybrid seed processing plant will be set up at the NARC with a view to provide clean, treated and high quality seeds to farmers.

He said agricultural research facilities are now being extended to tribal agencies, particularly Waziristan.

The Arid Zone Research Institute in Dera Ismail Khan will also be expanded at the same time, he said.

Under a project, pesticides residue analysis laboratories will be set up in all parts of the country. These laboratories will cover food chains, health, and environment and production technology with a view to pursue international standards.

According to Dr Azeem, three projects will be set up in Balochistan covering horticulture and livestock.

The NARC is also developing a mechanism for the establishment of demonstration units of yogurt under public-private partnership (PPP).

The PARC has recently recommended 14 rice hybrids for different ecologies, two wheat varieties: ‘Borlaug 2016’ and ‘Zincol 2016’, two sugarcane varieties: ‘Thatta 2109’ and ‘Thatta 326’, working on commercialisation of genetically modified (GM) crops, and bioremediation on 86 sites full scale wastewater treatment facilities through Pakistan.

The performance of various PARC projects — including mobile veterinary clinic services, feed technology unit, high eggs and meat producing chicks, ostrich breeding facilities, American channel catfish hatchery at NARC, Tilapia hatchery and aqua feed production to promote intensive fish culture in the country — was also reviewed by the board of governors at a meeting.

Riaz Haq said...

Exclusive: CPEC master plan revealed

https://www.dawn.com/news/1333101


Enterprises entering agriculture will be offered extraordinary levels of assistance from the Chinese government. They are encouraged to “[m]ake the most of the free capital and loans” from various ministries of the Chinese government as well as the China Development Bank. The plan also offers to maintain a mechanism that will “help Chinese agricultural enterprises to contact the senior representatives of the Government of Pakistan and China”.
The government of China will “actively strive to utilize the national special funds as the discount interest for the loans of agricultural foreign investment”. In the longer term the financial risk will be spread out, through “new types of financing such as consortium loans, joint private equity and joint debt issuance, raise funds via multiple channels and decentralise financing risks”.

The plan proposes to harness the work of the Xinjiang Production and Construction Corps to bring mechanization as well as scientific technique in livestock breeding, development of hybrid varieties and precision irrigation to Pakistan. It sees its main opportunity as helping the Kashgar Prefecture, a territory within the larger Xinjiang Autonomous Zone, which suffers from a poverty incidence of 50 per cent, and large distances that make it difficult to connect to larger markets in order to promote development. The prefecture’s total output in agriculture, forestry, animal husbandry and fishery amounted to just over $5 billion in 2012, and its population was less than 4 million in 2010, hardly a market with windfall gains for Pakistan.
However, for the Chinese, this is the main driving force behind investing in Pakistan’s agriculture, in addition to the many profitable opportunities that can open up for their enterprises from operating in the local market. The plan makes some reference to export of agriculture goods from the ports, but the bulk of its emphasis is focused on the opportunities for the Kashgar Prefecture and Xinjiang Production Corps, coupled with the opportunities for profitable engagement in the domestic market.
The plan discusses those engagements in considerable detail. Ten key areas for engagement are identified along with seventeen specific projects. They include the construction of one NPK fertilizer plant as a starting point “with an annual output of 800,000 tons”. Enterprises will be inducted to lease farm implements, like tractors, “efficient plant protection machinery, efficient energy saving pump equipment, precision fertilization drip irrigation equipment” and planting and harvesting machinery.


Meat processing plants in Sukkur are planned with annual output of 200,000 tons per year, and two demonstration plants processing 200,000 tons of milk per year. In crops, demonstration projects of more than 6,500 acres will be set up for high yield seeds and irrigation, mostly in Punjab. In transport and storage, the plan aims to build “a nationwide logistics network, and enlarge the warehousing and distribution network between major cities of Pakistan” with a focus on grains, vegetables and fruits. Storage bases will be built first in Islamabad and Gwadar in the first phase, then Karachi, Lahore and another in Gwadar in the second phase, and between 2026-2030, Karachi, Lahore and Peshawar will each see another storage base.

Riaz Haq said...

#Swiss #agriculture #tech giant Syngenta
to invest $1.4bln in #Pakistan | Business | http://thenews.com.pk

https://www.thenews.com.pk/print/207811-Syngenta-to-invest-14bln-in-Pakistan

KARACHI: Syngenta Pakistan, a Switzerland-based company, dealing in premier crop protection and the third largest seeds business, announced to support small and medium growers to take up modern ways of farming, with the primary objective to ensure food security in the country, a statement said on Wednesday.

Tina Lawton, Syngenta’s head of Asia-Pacific Region, made her first visit to Pakistan and toured Syngenta’s research and development facility near Lahore to review Syngenta’s operations and understand the Pakistan agriculture market and how to support its further development, it added. She also met Syngenta franchisees and farmers to get insight on the market; whereby, assuring them Syngenta’s commitment to Pakistan and upholding its long tradition of 50 plus years presence in the country. She also discussed the modernisation of the Naya-savera Franchise model with the use of latest pioneering technology.

Lawton said that Syngenta’s transition of new ownership to ChemChina will not affect its status as a Swiss company and it will continue to focus on long-term investment through over $1.4 billion annual investment in research and development in Pakistan, the statement said.

Lawton’s visit proved extremely fruitful and truly demonstrated the Syngenta’s commitment to improve the life of farmers. Syngenta is all geared up to transform the agriculture sector of Pakistan, making it a self-sufficient economy to meet its food requirements by bringing in new technology and products, which will cater to the needs of the ever-growing agriculture industry in Pakistan, it added.

Riaz Haq said...

THE EXPRESS TRIBUNE > BUSINESS
Pakistan could eat India’s share of basmati rice exports

https://tribune.com.pk/story/1456663/pakistan-eat-indias-share-basmati-rice-exports/


Pakistan could target India’s basmati rice share in the global market, a likelihood sparked by stringent policies placed by the European Union (EU) on the presence of hazardous pesticides in the commodity, said an official.

From January 1, 2018, all countries that export basmati rice to the EU must bring down the maximum residue limit (MRL) level for Tricyclazole, a pesticide, to 0.01 mg per kg. Up till now, the EU was accepting 0.03 mg per kg from different countries, including India.

The chance that Pakistan could eat up a share of India’s market comes from the fact that the country’s farmers do not use such chemicals to protect their crops.

However, Indian farmers widely use the pesticide under scrutiny and exporters fear that up to 95% of basmati shipments could take a hit by the new regulation.

Since new EU regulations could completely choke off Indian basmati exports, an Indian government delegation is leaving for Brussels this week to discuss the restrictions.

On the other hand, a Pakistani basmati exporter says this presents an opportunity to grab India’s market share, because it will at least take two cycles to reduce the consumption of Tricyclazole in the country.

“Pakistan currently exports 100,000 tons of basmati to the EU a year, which can go up to 250,000 tons per annum after EU regulations,” Matco Foods Pvt Limited Director Faizan Ali Ghori told The Express Tribune.

India, the world’s biggest exporter of basmati rice with a share of about 70%, exported 350,000 tons of basmati to the EU worth $268 million in fiscal year 2016-17.

Raising Rs1 billion from the stock market

Meanwhile, Matco Foods – one of the leading basmati rice exporters in Pakistan – is expecting to raise Rs1 billion through the Initial Public Offering (IPO) it has planned for around September this year.

The company plans to invest the proceeds in its two rice glucose plants in Karachi. Rice glucose is the main ingredient for pharmaceutical, confectionery, and juice industries.

“We want to move towards value added products to increase exports,” said Ghori.

The company exports rice to over 60 countries.

Matco’s first rice glucose with a capacity of 10,000 tons per annum is being commissioned in Karachi at an investment of Rs350 million. The other factory will have a capacity of 20,000 tons that will be set up in the next one to two years.

The company will prefer international markets as it expects to fetch as much as $11,000 per ton against a price range of just $400-$500 per ton in the domestic market, Ghori said, adding that there is a growing demand in western markets for rice glucose.

Currently, there are two rice glucose factories in Pakistan – both in Karachi due to proximity to ports and export markets.

Matco’s management believes the demand for rice glucose will increase because it is not genetically modified and safer for children. At present, over 90% domestic demand of pharmaceutical and confectionary industries is being met by corn glucose.

CPEC opens avenues for agri-exports

“There is so much room for diversification in rice exports because Pakistan does not make value added products from rice that have huge domestic as well as international demand,” he added.

Riaz Haq said...

#Qatar to import #food products worth $1 billion from #Pakistan | Pakistan | http://thenews.com.pk

https://www.thenews.com.pk/print/217222-Qatar-to-import-edibles-worth-1-bn-from-Pakistan

In the wake of strained relations between Saudi Arabia and Qatar, Doha’s high-powered trade delegation has visited Pakistan last week for exploring opportunities for importing meat including beef and mutton, chicken, rice and dairy products worth over a billion dollar.

Qatar is a rich country having potential to import over a billion dollar food items from Pakistan. “In the upcoming Special Economic Zones (SEZs) which will be established with the help of China, proposals are under consideration to establish modernised farm houses with the purpose to boost exports of live animals as well as of both beef and mutton manifold in years ahead,” said the official sources.

Earlier, Qatar used to import major chunk of food items from Saudi Arabia but after strained relationship with Gulf States now Qatar is exploring new markets to import food items and Pakistan can become potential player in this regard in weeks and months ahead.

Qatar is the 38th largest export economy in the world as in 2015, their exports stood at $79.9 billion while imports were $34.7 billion, resulting in a positive trade balance of $45.2 billion. In 2015 the GDP of Qatar was $164 billion.

The top exports of Qatar are Petroleum Gas($44.3B), Crude Petroleum ($17.3B), Refined Petroleum ($6.47B), Ethylene Polymers($2.26B) and Nitrogenous Fertilizers ($1.22B), using the 1992 revision of the HS (Harmonized System) classification.

Its top imports are Cars($2.87B), Planes, Helicopters, and/or Spacecraft ($2.6B), Gas Turbines ($1.09B),Aircraft Parts ($1.04B) and Jewellery ($970M).

The top import origins are China ($3.51B), France ($3.23B), the United Kingdom ($3.08B), the United States ($2.96B) and the United Arab Emirates ($2.76B).

Qatar borders Saudi Arabia by land and the United Arab Emirates, Bahrain and Iran by sea. In 2015, Qatar imported $34.7 billion worth of products making it the 58th largest importer in the world. During the last five years, the imports of Qatar have increased at rate of 8.5 percent increased from $22.8 billion in 2010 to $37.7 billion in 2015.

The recent imports are led by cars, which represents 8.27 percent of total imports of Qatar, followed by planes and then other items.

President Federation of Pakistan Chamber of Commerce & Industry (FPCCI) Zubair Tufail on Monday confirmed to this paper that Qatar’s trade delegation paid visit to Pakistan last week for exploring trade opportunities and they were interested in importing food items.

“We have helped them to establish contacts with major business houses involved in food items’ export from Pakistan and it is expected that exporters could get their potential shares in months and years ahead,” he concluded.

Riaz Haq said...

#Pakistan’s 1st #hybrid #rice #research opens at International Centre for Chemical and Biological Sciences #Karachi https://www.thenews.com.pk/amp/219184-Countrys-first-hybrid-rice-research-centre-opens-at-ICCBS …

The vice chancellor of the University of Karachi, Professor Dr Muhammad Ajmal Khan, inaugurated the Sino-Pakistan Hybrid Rice Research Centre (SPHRRC) at the International Centre for Chemical and Biological Sciences (ICCBS), KU, on Wednesday.

The audience was informed that it was first of its kind centre in the country and had been set up at a cost of Rs150 million on the premises of the country’s leading research establishment of the ICCBS.

“The research centre has state-of-the-art research facilities, including NMR spectroscopes, plant tissue culture technology, genomics and greenhouses.” The curtain-opening ceremony was attended by ICCBS Patron-in-Chief Professor Dr Atta-ur-Rahman, Consul General of China in Karachi Wang Yu, China National Rice Research Institute (CNRRI) of Hangzhou’s Director General Professor Dr Cheng Shihua and ICCBS Director Professor Dr Muhammad Iqbal Choudhary.

Chinese Consul General Wang Yu said that Pakistan was famous for its high quality rice, while China was great importer of high quality Pakistani rice. Talking about the hybrid rice centre, he observed that the ICCBS owned highly qualified scholars and state-of-the-art research equipment.

Riaz Haq said...

Satellite and text messages: Pakistani farmers' new irrigation tools

https://www.dawn.com/news/1350151

It is still beyond farmer Mohammad Ashraf’s comprehension that people in Islamabad can predict that it will rain in the next two days in his village. He is also astonished that, based on this prediction, they can tell him how much he should water his rice and sugarcane plantations.

“I marvel at this science of being able to predict something that is unknown and in God’s hands,” says the 36-year-old farmer.

Every Friday, he reads the simple Urdu messages sent to his phone, saying things like: “Dear farmer friend, this is to inform you that between 21 and 28 July 2017 in your area (Bahawalnagar) the crops used this much water (cotton 1.6 inch, sugarcane 1.7 inch). Next week, rain is predicted in some parts of your region. Therefore please water your crops accordingly.”

The text messages are sent by the Pakistan Council of Research in Water Resources (PCRWR), a government agency that carries out water research. Ashraf would be even more flabbergasted if he knew the scientists get this information from space.

“Using satellites and models that take the pulse of the earth, we can identify the amount of water a given crop requires at a specific location and a specific time,” says Faisal Hossain, head of the Sustainability, Satellites, Water, and Environment (SASWE) research group at the University of Washington which developed the programme for, “estimating crop water requirement in a cost effective and sustainable manner for the whole country”.

Ashraf, who lives in Hayatpur in Punjab’s Sargodha district, now takes these messages seriously.

Five years ago, he met water experts from the PCRWR who were doing a field survey to explore how to improve groundwater conservation and crop yield.

During their surveys, the experts found that farmers were over-watering their crops.

They installed a water meter on Ashraf’s 12-acre farm and explained that if the arrow turned towards the green on the dial, it meant that his land had enough water.

When the arrow turned towards the red mark, it was time to water.

“Like every farmer in the village, I did not believe them. We have been farming for generations and know what works and what doesn’t,” Ashraf told The Third Pole.

But the following year, he decided to only water his field when the marker pointed towards the red.

That season he produced more, spent less on diesel to run the tubewell, and made more profit than anyone in the village.

“The others watered their sugarcane fields three times more than I did and not only did my plants grow taller, I had less disease in my crop than the rest.”

Ashraf says that an acre of his land yielded 1,000 maunds (1 maund = 37 kilogrammes) of sugarcane. Each maund sold for Rs180. “I sold my crop for Rs180,000 while most villagers could only sell between Rs80,000 and 100,000.

Now a convert, he says he plans heed to every word from PCRWR. “I’d say that 99 per cent of the time they are right on the mark about rain,” he says.

Since last year, the PCRWR has sent weekly information to farmers like Ashraf through text messages, telling them how much water their crops need.

They also send them weather forecasts.

“We started with 700 farmers in April 2016, all across Pakistan, and since January this year the number of farmers receiving the messages has increased to 10,000,” says Ahmed Zeeshan Bhatti, deputy director of PCRWR.

The agency has submitted a proposal to some organisations to support it in improving the advice and expanding the service to 100,000 farmers.

“We carried out a survey to gauge the response of the farmers to our advice and the feedback was encouraging,” he says.

Between 25 and 30 farmers would call back immediately for further information.

“Our initial telephone survey revealed that farmers are saving almost 40 per cent of water by rationing irrigation,” he says, adding that the service is saving around 250 million cubic metres of irrigation water per year.


Riaz Haq said...

Pakistani farmers fast adopting tunnel farming techniques
November 11, 2017 By:Samaa Web Desk Published in Blogs Be the first to comment!

https://www.samaa.tv/blogs/2017/11/pakistani-farmers-fast-adopting-tunnel-farming-techniques/

Tunnel farming is not less than a windfall for farmers in Punjab and other upper parts of Pakistan as vegetables grown two months ahead of the actual time window fetch three to five times more price.

Recent uppish trends in the prices of the kitchen crops especially tomatoes and onions have made off-season veggies technology more popular among the farmers.

“I sold cucumbers grown at my farm at a rate of Rs 50 per kilogram last month. But these are now fetching now Rs 22 per kilogram in the whole sale market, almost twice the prices these are sold for in season,” says Allah Rakha, an owner of a farm in Kharianwala in Central Pakistan province of Punjab.

Tunnels, the structures comprising steel pipes covered by plastic sheets have lately mushroomed in Pakistan’s plains, mostly in central Punjab districts of Sheikhupura, Nankana Sahib and Gujranwala, following the suit of farms in Khyber Pakhtun Khawa, the north-western province.

Besides Cucumbers, other high-value vegetables grown in Pakistan through tunnel farming include- tomatoes, chilies, Caspicum (Shimla Mirch) and gourds.

The nurseries of tomatoes, chilies and caspcus are being transplanted these days in Punjab and the crop is expected to be at fruiting stage by February.

The technology not only helps produce the crop at least two months earlier than the traditional cultivation season but also saves the crop from all sorts of severe weather and handling related problems. In Punjab, the provincial government is providing subsidy for the purchase of drip irrigation gadgets while USAID is providing technical and financial assistance to growers in Khyber Pakhtun Khawa. But due to lack of awareness, the area under tunnel farms in Punjab is not more than 350 acres which is just iota when compared to millions of acres of agriculture land in the province.

“More and more growers should turn to this technology; We are ready to provide all sorts of assistance,” says Dr. Zafaryab Hyder , Director General Agriculture Extension, Punjab.

In spite all the constraints, the new technology has opened new vistas of prosperity for the farmers who had been victim of subsistence culture over the last several decades. Just a decade ago, the people of Punjab had to relish on the vegetables grown in the neighboring provinces of Sindh, Khyber PakhtunKhawa and Balochistan at exorbitant prices. The vegetables like bitter gourd, okra, peas , tomatoes, chilies , cucumbers from other provinces fetched atleast twice as compared to those produced in the Punjab just a couple of months later. However, the introduction of tunnel farming has produced new array of opportunities, initially for the progressive farmers who can get price for tomatoes, capsicum (Bell Peppers) thrice in early time window than the traditional season of cultivation. The owners of land tracts with tunnel farming are mostly educated youth, mostly agriculture graduates and Masters’ in Business Administration. They are no more being exploited by the middle man.

Rather, they provide high-value off-season vegetables directly to hotels and departmental stores. Besides vegetables, even the growers of strawberry in Lahore and Sheikhupura districts have adopted the tunnel farming to protect their crops from the severe weather conditions. With the passage of every day, the future of this new technology is becoming more and more bright especially the fertile agricultural lands of Punjab. The future of tunnel farming seems bright in Pakistan as growers have started embracing the technology lately.

However, the ongoing smoggy weather in the Central Pakistan has cast ill-effects on the crop with hindering the photosynthesis process much needed for the plant growth. Growers fear that per acre yield may decline drastically if the unfavorable weather conditions continue.

Riaz Haq said...

Trade churn: Who will milk the benefits?

https://www.financialexpress.com/opinion/trade-churn-who-will-milk-the-benefits/1750285/


According to the Food and Agriculture Organisation 2017, India is the largest milk producer in the world which contributes 21% to the world milk production followed by the United States (12%), Pakistan (5.3%), China (4.2%), Brazil (4%), Germany (3.9%), Russia (3.7%), New Zealand (2.5%), Netherlands (1.7%) and Australia (1%). In terms of numbers of dairy farmers, India is followed by Pakistan (7 million), the United States (0.038 million), China (0.013 million), New Zealand (0.012 million) and Australia (0.005 million).

India has around 73 million dairy farmers mostly holding one or two milch animal per farmer. Also, in India, farmers share in the retail price of milk is around 60%, the highest amongst other countries (International Farm Comparison Network, Dairy Report, 2018). Whereas, in the case of New Zealand and Australia, where average holding is 430 and 263 milch animals per farmer, respectively, price share is only 23% and 24%. Similar is the situation in the United States, Germany, France, and Denmark, where farmers receive only 43%, 45%, 34% and 43% of consumers’ price on milk and milk products, respectively.

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India’s livestock sector ensures food security, provides employment, which leads to a reduction poverty and, more importantly, rural inequity. This is also evident from the increasing dependence of Indian farmers on livestock. Share of livestock sector to Gross Value Added (GVA) increased from 4% in 2011 to 4.6% in 2016. While share of agriculture and allied sector to gross value added consistently declined from 18.5% to 17.9%, during this period share of livestock in agricultural and allied gross value added increased from 22% to 26%. Among the livestock products, milk and milk product consist the highest share (67%) in the value of output from the livestock sector. Besides, this sector has been growing 11%, compounded annually, whereas the agricultural and allied sectors have grown 9% over this period. In recent years, milk and milk products are the largest agricultural commodity generating 32% more output than combined output of paddy and wheat.

Riaz Haq said...

Prime Minister Imran Khan on Monday said that with the introduction of better mechanization tools and ICT-enabled extension services, agriculture sector in Pakistan will be revolutionized.

https://www.app.com.pk/national/agriculture-sector-in-pakistan-to-be-revolutionized-pm/

“Olive cultivation and shrimp farming on commercial scale are need of the hour to ensure food security in the country. It will also help in improving exports”, he said while chairing a meeting on Agriculture Transformation Plan in the country, one of the Prime Minister’s Priority Sectors for economic turn-around.

The Prime Minister reiterated that the launch of Kissan Card will facilitate farmers to buy machinery and agriculture inputs.

He directed the authorities concerned to establish centers of excellence in Punjab and Khyber Pakhtunkhwa for research in major crops like cotton, wheat and rice.

The Prime Minister also directed to set up calf-raising centers and introduce better artificial insemination techniques for the growth of livestock and the improvement of milk production in the country.

He directed all the provincial Chief Secretaries to take effective steps for the availability of urea by putting a check on its illegal transportation to neighboring countries, especially Afghanistan.

The Prime Minister was informed that administrative steps were being taken against individuals involved in creating artificial shortage of urea.

The meeting was attended by Industries Minister Makhdoom Khusro Bakhtiar, Minister for National Food Security Syed Fakhar Imam, Planning Minister Asad Umar, Special Assistant to PM on Political Communication Dr Shehbaz Gill, Chief Minister Balochistan Abdul Quddus Bizengo and senior officers concerned.

Chief Minister Punjab Sardar Usman Buzdar and Chief Minister KP Mahmood Khan joined the meeting via video link.

Riaz Haq said...

Maize-soybean strip intercropping to reduce Pakistan's soybean import bill by 50% in next five years

http://en.ce.cn/Insight/202201/19/t20220119_37271519.shtml


“Soybean is considered the essential poultry feed ingredient, next to cereals within the field crop segment. However, local soybean production in Pakistan is much lower than the total national annual consumption. We can get out of this situation by enhancing our local soybean production using strip intercropping technology, which has globally proven to be the technique for enhancing crop production in the face of decreasing cultivation in a sustainable manner,” said Muhammad Ali Raza, post-doc of Sichuan Agricultural University (SAU) and Director of National Research Centre of Intercropping, IUB.

Since 2018, successful maize-soybean strip intercropping technology trials have been continuously conducted in Pakistan’s Sindh and Punjab. At the meeting, Dr. Muhammad Ali Raza, Dr. Zaheer Ahmad In-charge of soybean cell of University of Agriculture Faisalabad (UAF) and Hafiz Saad Bin Mustafa, Research Scientist at Directorate of Oilseeds, Ayub Agriculture Research Institute (AARI), presented their achievements on maize-soybean intercropping. Positive feedback was also given from agricultural enterprise CEOs and local progressive farmers in the meeting.

“In last autumn, from Aug. to Dec. 2021, I adopted this technology on 40 hectares of land. In the end of the season, I got 1.8 tons of soybean and 2.5 tons of maize per hectare,” Ch. Shaukat Ali Chadhar, President of Kissan Board Pakistan, shared the promising data of the trial by him.

Dr. Muhammad Arshad, CEO of Hi Tech Group, remarked that high protein content soybean seeds with good amino acid profiles are for good digestibility which can be cultivated through maize-soybean strip intercropping technology. “The intercropping technology can increase the protein content within soybean because high maize crops will give some shade to soybean crops which will be the reason for high accumulation of protein within soybean seeds,” he explained.

The meeting was chaired by Prof. Dr. Athar Mahboob, IUB Vice Chancellor. “IUB is ready to provide all the technical support required to the industry or farmer community. With this technology, we are aiming to reduce our country’s soybean import bill by 50% in next five years,” he said.

Dr. Rana Tariq, CEO/MD of Shamim Feeds Pvt. Ltd., Tariq Tanveer, CEO of Agri-Tourism Development Corporation of Pakistan, Dr. Khalid Mahmood Shouq, Editor in Chief of Veterinary News & Views, Ali Khurram Irfan Nomani, CEO of Akin Foods, Dr. Muhammad Aslam, CEO of Mumtaz Feeds, Rao Muhammad Ikhlaq, Muhammad Manzoor, and Naeem Iqbal, etc. also attended the meeting.

Riaz Haq said...

The challenge of shrinking farm sizes


https://www.dawn.com/news/1730732


Many research studies have explored and proven the inverse relationship between farm size and crop yields. In Pakistan, the solution undeniably lies in consolidating agricultural holdings into somewhat larger and more efficient farms. But the real challenge is to devise and execute effective policy measures. Among the options explored, cooperative farming and corporate farming are often the most cited.


In Pakistan, the average farm size has steadily declined from 5.3 hectares in 1971 to 3.1 hectares in 2000 and then subsequently to 2.6 hectares in 2010 (Agricultural Census 2010). As a result, the agriculture sector is now dominated by smallholders. Over 90 per cent of farms are smaller than 12 acres, out of which 67pc are below even five acres (two hectares).


The majority of farms have become so small due to successive land divisions that they are no longer economically and operationally viable. Small size is a major limiting factor for increasing labour and land productivity, mechanisation of farms, optimal application of quality farm inputs, and adoption of advanced agricultural practices and technologies.

At the same time, more than 8.2 million farms pose a serious challenge for the government to provide extension services, offer credit facility to all farmers, enhance their effective access to the market and even implement government programmes for farmers, primarily due to the high transaction costs involved. All these challenges translate into higher production costs and, in turn, a lack of competitiveness. As a result, farmers demand farm subsidies, putting additional pressure on the country’s scarce financial resources.

Interestingly, in East Asian countries like South Korea and Japan, instead of shrinking, farm sizes are increasing. In fact, thriving manufacturing and service sectors have provided lucrative employment opportunities, resulting in labour migration from agriculture to non-agriculture sectors.

Many research studies have explored and proven the inverse relationship between farm size and crop yields. In Pakistan, the solution undeniably lies in consolidating agricultural holdings into somewhat larger and more efficient farms. But the real challenge is to devise and execute effective policy measures. Among the options explored, cooperative farming and corporate farming are often the most cited.

Cooperatives (associations of persons united voluntarily) have been successful in many countries in empowering farmers to pool in multiple lands together, use collective bargaining to buy agricultural inputs and sell their produce, and collectively undertake value addition to attain greater efficiencies. Their success can be gauged from the fact that cooperatives in Europe have over 40pc market share in agri-food supply chains, whereas, in the USA, around 75pc of the country’s milk is marketed by dairy cooperatives.

Due to the peculiar socio-cultural context of our rural areas, particularly in Punjab and Sindh, people do not exhibit an inclination towards working together for common needs and aspirations. Therefore, cooperatives in the agriculture sector could not reap the desired results. In Pakistan, cooperatives often do not hire professional managers. Therefore, when the majority of members lose interest in managing the organisation due to one reason or another, a small group takes control and manages it for their own gains and interests.

Another widely mentioned option is corporate farming (large-scale agriculture by large companies). The arguments in favour include companies’ greater capacity and financial muscle to introduce mechanisation and new technologies, undertake effective marketing of farm produce, develop linkages with national and international value chain players, and improve farm and area infrastructure. All these factors result in higher productivity and competitiveness.


Riaz Haq said...

Pakistan sugar production for 2023/24 is forecast to rise 250,000 tonnes to 7.1 million due to the recovery in sugarcane area harvested from the flood-damaged crop the year before.

http://www.ukrsugar.com/en/post/pakistan-sugar-production-is-forecast-to-rise-250000-tonnes-usda

It is reported by USDA in its May report.

https://apps.fas.usda.gov/psdonline/circulars/sugar.pdf

Sugarcane production is forecast up 3 percent to 83.5 million tons due to the expected recovery in area. Favorable prices are encouraging farmers to maintain sugarcane area vis-à-vis planting other crops. Farmers’ preference toplant sugarcane is also due to the crop’s resiliency to weather hazards compared to alternative crops. Sugarcane is produced in three provinces, with Punjab accounting for 68 percent of total production, followed by Sindh with 24 percent, and Khyber Pakhtunkhwa (KPK) with 8 percent. The Bahawalpur division of Punjab and the Sukkur division of Sindh account for more than half of the total sugarcane area. Sugarcane is planted in two different seasons: spring planting runs from February to March and the fall season is from September to October. Punjab and Sindh farmers plant sugarcane in both seasons, while most cane in KPK is planted in spring. Yields per hectare are relatively low due to lack of high yielding varieties, water shortages, and uneven fertilizer distribution.

Pakistan has been one of the top eight sugar producers for the past 3 years and is forecast to be the seventh largest exporter in 2023/24. Sugar consumption is estimated up 150,000 tons to 6.3 million supported by population growth and higher supplies. Despite the rise in production, sugar exports are forecast down 200,000 tons to 800,000 as the government seeks to curb exports. Fearing domestic price increases, the government is expected to be reluctant to approve too many exports this year by monitoring the market situation on a fortnightly basis to decide on the timing and quantity of exports. Stocks are expected to be flat.


Riaz Haq said...

Pakistan's Rise as Strong Competitor Threatens India's Supremacy in Global Maize Market

https://krishijagran.com/news/pakistans-rise-as-strong-competitor-threatens-indias-supremacy-in-global-maize-market/


In the worldwide maize (corn) market, Pakistan has emerged as a strong rival to India, delivering the coarse cereal at a lower price in South-East Asia.


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"Pakistan is currently dealing with a number of difficulties. This year, India boasts a bountiful maize crop. The situation is expected to improve as new contracts are signed by Indian exporters to South-East Asia and Gulf countries," said Mukesh Singh, Managing Director of Mumbai-based MuBala Agro Commodities Pvt Ltd.

"Pakistan benefits from its currency's depreciation against the US dollar." However, it has limited numbers and is only targeting South-East Asia," said Rajesh Paharia Jain, a New Delhi-based exporter. According to a trade analyst in Delhi, Indian exporters cannot help with such buyer behavior, even though such cases are rare. "However, there are issues. No one is issuing letters of credit (LCs) to facilitate trade with Pakistan. Also, container availability is an issue," he added.

According to Prakash, Indian maize is being offered for USD 307-15 per tonne, while Pakistani maize is being sold at USD 293-95 cost and freight. According to Jain, Pakistan is offering its produce for USD 280 f.o.b., whereas India is requesting USD 295 f.o.b. "India should be able to reclaim the advantage, primarily through lower east coast freight rates."

Our maize, on the other hand, is hampered by a flat Indian currency and a lack of government support, in addition to greater handling and storage costs," Jain explained. "We don't have any supply issues. As prices have calmed slightly, we are getting maize supplied for USD 24,000 per tonne in Chennai', added Prakash.

The median price (rates at which most trades take place) of maize at Davangere in Karnataka is 2,017 per quintal, according to data from Agmarknet, a subsidiary of the Agriculture Ministry, down 150 since last month. This crop year's minimum support price (MSP) for maize is USD 1,962. Prices have fallen below the MSP in some Maharashtra marketplaces.

Corn futures on the Chicago Board of Trade (CBOT) are trading at a one-month high of USD 6.5 per bushel (USD ​255.89 per tonne) due to robust demand. According to Jain, the quality of Indian maize is superior, but it is unable to gain since it is desired for feed rather than human use. MuBala's Singh stated that he has had orders from Oman and Saudi Arabia, but in lesser lots of 5,000 tonnes. Vietnam and Malaysia were also buying in large quantities.

However, issues have arisen with shipments to Bangladesh, the main consumer of Indian maize, because Indian LCs are not being fulfilled. According to the analyst, demand for Indian maize would remain strong in light of agricultural concerns in the United States. "There is uncertainty about supply from the United States. In addition, supplies from Ukraine are in doubt. Maize demand remains strong, and India stands to benefit," he said.

A record high maize yield of 34.61 million tonnes (mt) is expected to help meet export requests. According to figures from the Agricultural and Processed Food Products Export Development Authority (APEDA), maize exports were 28.6 lakh tonnes (lt) valued at USD 931 million during the April-January period of the 2022-23 fiscal, with Bangladesh accounting for 15 lt and Vietnam contributing for 5.7 lt. Maize exports were 36.9 lt valued at $1.02 billion in 2021-22.

Riaz Haq said...

Pakistan’s maize output has grown 4.5 times between 2000 and 2020 in the face of looming climate change challenges.


https://propakistani.pk/2023/05/08/replicating-the-success-story-of-maize/

It has witnessed an estimated 60 percent increase in productivity in the last decade according to the data published by the Pakistan Bureau of Statistics and Economic Survey of Pakistan. It’s the third-biggest cereal crop. In addition to direct human consumption, its uses range from poultry, livestock, and fisheries all of which play a key role in ensuring Pakistan’s national food security.


Since the opening of the first maize research institutes of the country in Yousafwala (Sahiwal) and Pirsabak (NWFP) in 1971 and the introduction of spring maize cultivation in 1975, maize acreage and production have been growing steadily over the years.



A coordinated Maize and Millet Research Programme initiated the same year and simultaneous efforts by the private sector have brought us to the point where Pakistan has surplus stocks of maize to export. It’s one of the few instances where the government and private sector has jointly built something so immense from scratch, especially in the agriculture sector.

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Developing the market
The primary driver behind the growth of any commodity is sustainable demand and fortunately for maize, it found a robust market. Poultry, one of the biggest sub-sectors with an annual turnover of Rs. 1500 billion and 10-12 percent annual growth, has been the key recipient of maize grain.

An estimated 65 percent of Pakistan’s production goes to providing poultry feed while 15 percent goes to wet milling, a process that mainly gives starch and other by-products like corn oil, gluten, fibre, and several important chemicals. All of these have widespread use cases from beverages, bakeries, processed food, oil, industrial alcohol, textile, paper, and pharmaceuticals.

Another 10 percent is utilized to produce cattle feed while the little of what’s left is used for human consumption. All of this points towards the fact that if we want the same success in other major crops Pakistan is struggling with, we need to develop their market and demand will take care of the rest.

It is unfathomable to expect an increase in cotton acreage and productivity when the textile sector is suffering from inflating energy crisis, uncompetitive tariffs, lack of skilled labor and the lack of innovation and value addition.

The same is true for oil seed crops where 75 percent of the consumption for edible oil is met with imported palm oil while the informal sector which constitutes desi ghee and domestic mustard oil cover 70-80 percent of the market. We simply lack the conducive infrastructure that can incentivize and promote the growth of oil seed crops. As long as there will be uncertainty on the market end, farmers will remain cautious in following the trend.

Research & Development
While the market demand played its role, the same can also be said about cotton, which has the biggest sector of the economy to back it, but the country is still failing to revive production to 2014 levels, let alone making any new breakthrough. The answer is research. The way the public and private sector has developed and promoted the modern maize hybrid seeds among farming communities, is unforeseen for any other crop, even cotton.

Industry-led efforts and Pakistan’s cooperation with China to introduce hybrids for rice and wheat are still in the early stages, but maize hybrid has already made its mark. Although, hybrid maize accounts only for 40 percent of the maize grown in the country, it contributes far more to the overall production due to high-yielding cultivars.


According to the farmers we talked to, they are often lucky to get nearly 40 maunds per acre with traditional varieties, but hybrid maize can easily guarantee 100 maunds per acre with the right practices.