Sunday, June 19, 2016

Is Chicken Really More Affordable Than Daal in Pakistan?

Pakistan's finance minister Ishaq Dar has suggested to his countrymen to eat chicken instead of daal (pulses or legumes). Does the minister sound like Queen Marie-Antoinette (wife of France's King Louis XVI) who reportedly said to hungry rioters during the French Revolution:  “Qu'ils mangent de la brioche”—“Let them eat cake”? Let's look into it.

It is indeed true that some varieties of daal are priced higher than chicken. For example, maash is selling at Rs. 260 per kilo, higher than chicken meat at Rs. 200 per kilo. But other daals such as mung, masur and chana are cheaper than chicken.

The reason for higher daal prices and relatively lower chicken prices can be found in the fact that Pakistan's livestock industry, particularly poultry farming, has seen significant growth that the nation's pulse crop harvests have not.

Poultry Farm in Pakistan

Pakistan's poultry industry achieved 127% growth in the total number of birds produced, 126% growth in the total meat production and 71%growth in terms of total eggs produced between 2000 and 2010, according to government data. As a result, the cheapest sources of animal protein in Pakistan are the eggs and meat from the poultry sector.  As of 2013, the per capita availability of poultry meat in Pakistan is 5 kg. In addition, Pakistanis consume 51 eggs per year per capita.

Major Pulse Producing Nations in 2011

Poultry share of meat consumption in Pakistan has steadily increased over the years.  In 1971, the market share of beef was 61%, mutton was 37%, and poultry meat a mere 2-2.5%. In 2010 the market share of poultry meat had increased to 25%, while beef and mutton declined to 55% and 20% respectively.  This increase in the overall size of the poultry sector has decreased the gap between the supply and demand of animal proteins and helped stabilize beef and mutton prices, making meat relatively more affordable to more people.

Production of daal, another important source of protein in Pakistan, has not kept pace with demand. Domestic production is not enough to provide 6-7 kilos of daal per person consumed in the country. Pakistan is forced to resort to imports to meet demand. Pakistan spent $139 million to import 628,000 tons of pulses in fiscal year 2010-2011. Pulse imports jumped to $224 million in July 2014 to January 2015 period, according to a report.

Overall, livestock contribution to agriculture in Pakistan has now risen to 58.55 percent, with the rest coming from crops, fisheries and forestry, according to Economic Survey of Pakistan 2015-16. The agriculture sector accounts for 19.82 percent of GDP and 42.3 percent of employment with strong backward and forward linkages. Dairy farming has grown in Pakistan by leaps and bounds, making the country the third largest milk producer in the world.

Services sector now accounts for 59.16% of Pakistan's GDP,  the largest sector of the economy, followed by industrial sector that contributes 21.02%. Manufacturing is the most important sub-sector of the industrial sector containing 64.71 percent share in the overall industrial sector.

There has been significant progress in increasing animal protein supply via growth in Pakistan's livestock sector over the last few decades. Nations' policymakers now need to focus on increasing plant protein sources to close the gap between protein supply and demand in an affordable manner.


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43 comments:

Singh said...

Chicken is cheaper than Daal in India . Dal ~200 per Kg Chicken around 120-140 .

Riaz Haq said...

Singh: "Chicken is cheaper than Daal in India . Dal ~200 per Kg Chicken around 120-140 "

It's the basic law of supply and demand.

Being mostly vegetarian, neighboring Indians consume only 3.2 Kg of meat per capita, less than one-fifth of Pakistan's 18 Kg. Daal (legumes or pulses) are popular in South Asia as a protein source. Indians consume 11.68 Kg of daal per capita, about twice as much as Pakistan's 6.57 Kg.


http://www.riazhaq.com/2012/10/pakistan-among-top-meat-consuming.html

Riaz Haq said...

#India May Grow Dal (Pulses) In #Mozambique, #Myanmar To Counter Shortage http://www.ndtv.com/india-news/india-may-grow-dal-in-mozambique-myanmar-minister-tells-ndtv-1420779 … via @ndtv

India is sending teams to Mozambique and Myanmar to explore the possibility of growing pulses or dal as it battles burgeoning demand and steep prices, food minister Ram Vilas Paswan has told NDTV.

"We may cultivate pulses there or sign a long-term agreement (to procure). For this, we are sending a team to Mozambique and another to Myanmar," he said, adding that the visits are likely to happen in the coming week.

He admitted that the production of pulses has declined in the country. "It has been happening since the last three years that the monsoon has affected the production of pulses," Mr Paswan said.

His comments come as prices of pulses have touched Rs. 200 per kg (Pak Rs 310), while two key vegetables - tomato and potato - staying costly at up to Rs. 80 and Rs. 35 per kg despite efforts by authorities to check the rise.

Mr Paswan also said that he suspected rumours to be one the reasons for price rise of vegetables like tomato even as production has gone up.

"I am also surprised that the production of onion, potato and tomato have all increased this year, and there is general consensus that the consumption has not changed much. So in these conditions, I think the reason for price rise is rumours," Mr Paswan told NDTV.

Riaz Haq said...

Himalayan nations of #India, #Bangladesh, #China and #Nepal may face unprecedented food crisis: The Economic Times

http://economictimes.indiatimes.com/news/politics-and-nation/himalayan-nations-including-india-may-face-unprecedented-food-crisis-experts/articleshow/52820868.cms

The challenge to food, water and energy security is immense in Himalyan region countries as more than 40 percent of the world's poor live there and about 51 per cent of their population is food-energy deficient.

"Feeding more than 700 million people in the Himalyan region, about two-thirds of the world population, is something we need to think about very seriously," ICIMOD's livelihood expert Golam Rasul said.

IEG Director Manoj Panda said regional collaboration is need ..

Read more at:
http://economictimes.indiatimes.com/articleshow/52820868.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst

Ravi Krishna said...

indians are not mostly vegetarian.

http://www.thehindu.com/todays-paper/the-food-habits-of-a-nation/article3089973.ece

Riaz Haq said...

RK: " indians are not mostly vegetarian."

So why do they eat only 3.2 Kg of meat per capita per year? I guess the real reason in the Hindu story you shared is as follows:

The most alarming signal from this survey comes in response to a question about the experience of hunger. As many as 35 per cent say that, at least once during the last year, they or someone in their family could not have two square meals a day. Seven per cent say this happened `often.' This incidence is higher among the Dalits, the Adivasis, and the urban and rural poor. The survey is a reminder that hunger is not related only to natural calamities or famine. It is a living everyday reality in our country.

http://www.thehindu.com/todays-paper/the-food-habits-of-a-nation/article3089973.ece

Ravi Krishna said...

"So why do they eat only 3.2 Kg of meat per capita per year?"

It did not occur to you that one can be a non vegetarian without eating it daily. I was merely answering to your question that indians are predominately vegetarians.

Baba said...

Also need to see a kilo of Chicken is only good enough for 2 meal portions on average.
and a kilo of daal is good enough for 10-12 meal portions on average.

Riaz Haq said...

Baba:"Also need to see a kilo of Chicken is only good enough for 2 meal portions on average."

The usual portion in a carnivorous country like the United States s one-quarter pound of meat per person.

A kilo of chicken would be good enough for at least eight portions by US standards...it could be stretched to 10 or 12 in South Asia.

Ravi Krishna said...

BTW for the sake of environment beef consumption should be reduced. Producing beef is so stressful for water. There are many research paper on that.

Baba said...

What are you saying? In my house of 4 members, 1 kg of chicken gets over in a single sitting. Mind you, we are average eaters

Riaz Haq said...

Baba: "What are you saying? In my house of 4 members, 1 kg of chicken gets over in a single sitting. Mind you, we are average eaters"


The average weight for one boneless, skinless chicken breast lobe is 5.25 ounces, a little more than a quarter pound (4 ounces)

You are probably not eating a balanced meal that includes more than just meat. Quarter pound is the standard with bigger portions being one-third of a pound when served with carbs (nan, rice, potatoes or pasta) and a side of veggies.

Kailash said...

I was introduced to chicken by my best friend in college and I was vegetarian till then. Shortly thereafter I found out my uncle was not vegetarian because he also started in college. I had thought my joint family was strict vegetarian but turns out only my parents and grandparents - 4 out of 15 are vegetarian
The survey of 70% non veg in India is believable

Pak said...

1 kg meat in Pak is hardly enough for 3-4 people

Riaz Haq said...

Pak: "1 kg meat in Pak is hardly enough for 3-4 people"

A typical steak served in a restaurant weighs 6 to 9 ounces. A typical cooked chicken breast contains three
ounces of meat. A typical chicken thigh contains almost 2ounces, a typical drumstick 1-1/2 ounces, and a typical wing has less than an ounce.

https://www.umassmed.edu/uploadedfiles/MeatInfo.pdf

Riaz Haq said...

Kailash: "The survey of 70% non veg in India is believable"


My own experience with many of my Hindu friends in US is that they are only part-time vegetarians... they're vegetarians at home but carnivores elsewhere :-)

Baba said...

Sorry, I never saw 10 people sharing a complete tandoori chicken... can lead to riot among siblings

Riaz Haq said...

Baba: "Sorry, I never saw 10 people sharing a complete tandoori chicken... can lead to riot among siblings"

Yes, it's hard to share a whole tandoori chicken among more than 4 or 5 people... two breast pieces, two legs and wings etc. But curry chicken with nan or rice can be shared among more people.

Ravi Krishna said...

Per capita calorie consumption in pakistan is 2250 and in India 2300.

Riaz Haq said...

RK: "Per capita calorie consumption in pakistan is 2250 and in India 2300. "


This is a dubious claim that is contradicted by several key indicators.


1. Average body mass index (BMI) of Pakistanis (23) is higher than that of Indians (21). It's not possible on a lower calorie intake.

http://www.riazhaq.com/2012/07/world-population-america-significantly.html

2. Pakistanis are on average two inches taller than Indians. It's not possible on a lower protein intake.

http://www.averageheight.co/average-male-height-by-country/

3. Per capital consumption of meat, milk, oil and sugar is significantly higher in Pakistan than in India. This can not lead to lower calorie intake in Pakistan than in India.

http://www.riazhaq.com/search?q=meat+consumption

RaviKrishna said...

Pls challenge this site, not me:

http://chartsbin.com/view/1150

And this refers to UN data:

https://en.wikipedia.org/wiki/List_of_countries_by_food_energy_intake


If you think you know more than them, you can definitely challenge them.

Riaz Haq said...

RK: "If you think you know more than them, you can definitely challenge them."

That's what I just did.

It shows calorie intake decreasing in both India and Pakistan since mid-1990s that makes absolutely no sense. All credible indictors show people in South Asia eating better than before with declining poverty rates.

This data is as suspicious as Modi's GDP of India that even his Central Bank Chief Raghu Rajan questions and ends up losing his job recently.

http://indianexpress.com/article/india/india-news-india/from-intolerance-to-new-gdp-numbers-raghuram-rajan-had-a-view-on-all-2861455/

http://www.firstpost.com/business/raghuram-rajan-raises-doubts-about-new-gdp-questions-its-accuracy-overlaps-2602388.html

AJ said...

In Pakistan we have plenty of dishes with chiken, a salan or qoorma can serve as many people as you want to on lamba or chota pani. make palaoo biryani salan can consume with boil rice or chappati so yes 1 Kg can easily serve 10+ people depend on dish, plus 1KG can easily make 4 different veggies dishes more tasty by adding a minor quality, so yes they can even use as flavor booster :),also even in daal people add chicken or chicken cubes.
So Chicken is every where.... and cheaper too...

Riaz Haq said...

From Pakistan Poultry Association:
In our country per capita consumption of (poultry) meat is only 7 kilo grams and 65-70 eggs annually. Whereas developed world is consuming about 40 kilo grams meat and over 300 eggs per capita per year.
http://www.pakistanpoultryassociationnz.pk/statistic-of-ppa/

Riaz Haq said...

#Pakistan shares index plummets 848 points ( 2.22%) on #Brexit vote http://reut.rs/28TmOQL via Reuters

Pakistan stocks plunged more than 2 percent and recorded their biggest percentage loss in more than five months as Britain's exit from the European Union rattled global markets.

The benchmark 100-share index of the Pakistan Stock Exchange closed down 2.22 percent, or 848.01 points, at 37,389.88, after recovering from an intraday low of 36,826.

"Markets fell as an impact of Britain's exit from EU, Asian markets fell as well as commodity prices. Oil prices are also down by five percent," said Fawad Khan, head of research, KASB Securities Private Limited.

Index heavyweights that led the losses include Oil and Gas Development Co Ltd, which slipped 4.18 percent, while Pakistan Petroleum Limited declined 4.34 percent and Pakistan Oil fields Ltd fell 3.93 percent.

Yen has appreciated as a result of Britain's exit, hurting auto sector stocks.

Honda Atlas Cars (Pakistan) Ltd lost 5 percent and Pak Suzuki Motor Co Ltd declined 5 percent.

Anonymous said...

http://www.dawn.com/news/1266069/can-pakistan-be-the-next-silicon-valley#comments

Riaz Haq said...

Anon: "http://www.dawn.com/news/1266069/can-pakistan-be-the-next-silicon-valley#comments"


The key to innovation is not necessarily advanced education and training in a certain field. It is out-of-the-box thinking. Major innovations have often come from people working in unrelated fields. Recent examples of such innovations from people of South Asian origin include Zia Chisti's Invisalign and Salman Khan's Khan Academy. Both Zia and Salman came from investment banking background before they revolutionized the fields of orthodontics and education.

Encouragement of the culture of innovation should begin during children's formative years in primary and secondary schools. Innovation requires free out-of-the-box thinking. History tells us that some of the biggest innovators were tinkerers with little or no formal education in the fields of their biggest and most transformative innovations. Groups and foundations promoting innovation in Pakistan need to increase their outreach to the school kids. As a start, they can expand inquiry-based learning and build more makerspaces like Karachi's Robotics Lab in partnership with private industries and foundations in major cities.

http://www.riazhaq.com/2014/08/promoting-innovation-culture-in-pakistan.html

Riaz Haq said...

35% of what #Indians eat today is of `foreign' origin. #India #food http://toi.in/AefC9b57 via @timesofindia

Most of us know exotic new veggies and grains like kale and quinoa are "imported" but even ordinary staples like potato, onion, tomato and chilli came from elsewhere, reports Subodh Varma.
A study of 177 countries by scientists from the International Center of Tropical Agriculture has found that in India, more than a third of all food items derived from plants -grains, vegetables, fruits, spices, oils, sugar etc. -originated and developed elsewhere, and came to this subcontinent by trade or migration over centuries.

In terms of calorific value, such `foreign' origin foods make up 45 per cent of the national food production. It's not just India. At the global level, 66 per cent of calories consumed are derived from foreign origin foods on an average as was 71 per cent of production.
Onions and wheat have their origins in West Asia, potatoes and tomatoes came from South America, while mustard seeds came from the Mediterranean. Likewise, chillies came to India from Central America, while garlic and apples found their way from Central Asia.
Stay updated on the go with Times of India News App. Click here to download it for your device.

Anonymous said...

"So why do they eat only 3.2 Kg of meat per capita per year?" -- Simple. They eat meat on few Sundays or some special occasion like Vijaya Dashmi. Even in most of the middle class Hindu marriages you will rarely see non veg. Compare this to any Muslim wedding where it will be unthinkable.

Riaz Haq said...

#India tomato shortage causes #curry crisis with food #inflation rising under #Modi #BJP

https://www.theguardian.com/global-development/2016/jun/29/india-tomato-shortage-causes-curry-crisis-and-puts-sellers-under-pressure


At Pimpalgaon Basant, a village in western India, there is not a single cloud in the sky. The last time it rained was days ago, and that was only for an hour. Without rain, the Pimpalgaon tomato market, said to be the biggest in Asia, is almost empty.

“We have around 75% fewer tomatoes than normal,” says Sheik Tanveer, who works at the market. “Normally, you can buy tomatoes wholesale for 10 rupees [10p] a kilo here – now you’ll get about 150g for that.”

Tomato prices across India have, on average, doubled since April, causing consternation across the country. A long drought, followed by an early monsoon has disturbed the harvest cycle, and scarcity has pushed up prices. Other vegetables and lentils are also more expensive this year.

Tomatoes are a staple in Indian cuisine, used as a base for cooking vegetables, curries and dal. The rising cost makes a huge difference to family budgets and to the farmers who rely on steady sales for their income.

Many restaurants have dropped tomato-based dishes from their menus, while the sale of processed tomato sauces and ketchup has seen a 40% increase, according to Assocham, a national trade association.

Popat Khaire, a farmer from Pimpalgaon, says he’s never seen such a bad harvest. “It’s so hot. None of the farmers have any [tomatoes] to sell.”

Khaire usually gets good rates for his tomatoes, but he’s suffered huge losses this year. “The fields are ready, the saplings are ready, I am just waiting for the rain to come,” he says.

Santosh Zute, also a farmer, says: “The tomatoes that were planted have all come out small and black. You can’t eat them. So now we’re all sitting at home with our tomato seed. I’m losing around 5,000 rupees a day because of this.”

In India, the rise and fall of governments has been linked to the price of vegetables. High onion prices were thought to have been the deciding factor in the 1998 state elections in Delhi and Rajasthan.

This month, Arun Jaitley, the finance minister, chaired a meeting with cabinet ministers to find ways to reduce tomato prices. Mamata Banerjee, West Bengal’s chief minister, set up an emergency taskforce to address the tomato crisis.

While drought has slowed production in west India, heavy rains and floods have ruined the crop in the south. In Haveri, a region in the southern state of Karnataka, Shrenik Raj, a tomato farmer, says he has lost 600,000 rupees since the beginning of the year. “It was terribly hot, so the plants couldn’t grow. I’ve lost all my crop. I could sell tomatoes for a good price at the market now, but I don’t have any to sell,” he says.

At the beginning of the year, a bumper crop caused tomato prices in Haveri to fall dramatically, leading to huge protests from tomato farmers. “Wholesalers were offering us 50 paise [0.5p] or 1 rupee a kilo. The normal rate is 40 rupees. When the farmers heard about those prices, they just started dumping tomatoes in protest. Many didn’t bother to pick them; they just left them in the fields. Now, there is nothing to sell.”


India's drought migrants head to cities in desperate search for water
Read more
In India’s cities, tomato sellers are struggling to earn decent money. At Vegetable Alley in Mumbai, Sachin Bhad has to haggle with customers. “Tomatoes are selling for 50-60 rupees a kilo this week. Last week it had risen to 80 rupees – that’s the highest it has ever been,” he says. “This week, we’ve got tomatoes from Punjab, so the prices have come down a bit, but the stock we’re getting is not good and people aren’t buying.

“Two months ago, I used to earn 1,000 rupees a day – now I’m barely making 500. I spend all day explaining why tomato prices are so high.”

Smita Shah, one of Bhad’s customers, wants to buy half a kilo of tomatoes. “I used to buy a kilo two or three times a week. Now I buy 250g or 500g,” she says.

Riaz Haq said...

Prices of chicken, vegetables decline, fruits' soar in #Pakistan | Business Recorder

http://www.brecorder.com/agriculture-a-allied/183:pakistan/60390:prices-of-chicken-vegetables-decline-fruits-soar/?date=2016-06-26

Prices of vegetables and chicken registered a decline while fruit prices recorded an increase during this week compared to preceding week, revealed a survey conducted by Business Recorder on Saturday. The survey observed that the prices of essential kitchen items especially potatoes, tomatoes, onions, garlic, ginger and vegetables registered a reduction.

During the aforementioned period, chicken price in the wholesale market witnessed a reduction of Rs 200 per 40 kg from Rs 5200 per 40 kg to Rs 5000 which in the retail market is being sold at Rs 135-140 per kg against Rs 155-165 per kg. There was no change in the prices of mutton and beef as mutton is available at Rs 750 per kg. Boneless beef is being sold at Rs 480 per kg while beef with bones is being sold at Rs 380 per kg.

Prices of most of the vegetables witnessed a decline as Karaila is available at Rs 180 per 5 kg in the wholesale against Rs 200 per 5 kg, cucumber at Rs 140 per 5 kg against Rs 160 per 5 kg, potato at Rs 2200 per 110 kg bag against Rs 2500 per bag, tinda at Rs 175 per 5 kg against Rs 200 per 5 kg, ginger at Rs 90 per kg against Rs 120 per kg and garlic at Rs 150 per kg against Rs 200 per kg.

Cauliflower price witnessed a decline of Rs 50 per 5 kg in the wholesale market from Rs 400 per 5 kg to Rs 350 per 5 kg and capsicum price also went down by Rs 50 per 5 kg from Rs 380 per 5 kg to Rs 330 per 5 kg. Tinda in the retail market is available at Rs 45 per kg against Rs 50 per kg, capsicum at Rs 80 per kg against Rs 90 per kg, cabbage at Rs 50 per kg, cauliflower at Rs 75 per kg against 80 per kg. Green chili price witnessed a reduction of Rs 80 per 5 kg from Rs 300 per kg to Rs 220 per 5 kg and maro kadu price remained stable at Rs 160 per 5 kg.

Beans with a reduction of Rs 50 per 5 kg in the whole sale market remains available to Rs 350 per 5kg from Rs 400 per 5 kg which in the retail market is being sold at Rs 80 per kg against Rs 90 per kg and peas price also witnessed a decline of Rs 50 per 5 kg from Rs 400 per kg to Rs 350 per 5 kg which in the retail market are being sold at Rs 80 per kg against Rs 100 per kg.

Lemon in the wholesale market is being sold at Rs 700 per 5 kg against Rs 650 per 5 kg, which in the retail market are being sold at Rs 160 per kg. Onions price remained stable at Rs 130 per 5 kg in the wholesale market which in retail market is being sold at Rs 30-35 per kg, while potatoes are being sold at Rs 30-35 per kg and brinjal is available at Rs 40-50 per kg. No change was registered in the price of rice, all range of pulses, wheat flour, soft drinks, ghee/cooking oil, spices, tea packs, milk and yogurt.

Prices of most of the fruits during the week under review witnessed an increase as Sindhri mangoes are being sold at Rs 125 per kg against Rs 110 per kg, Chaunsa at Rs 110 per kg against Rs 100 per kg, peach is being sold at Rs 120 per kg against Rs 100 per kg, watermelon went up by Rs 5 per kg from Rs 20 per kg to Rs 25 per kg, melon at Rs 40-65 per kg, normal quality local banana at Rs 100 per dozen against Rs 80 per dozen and fine quality local banana at Rs 130 per dozen against Rs 120 per dozen, while Indian banana is being sold in the range of Rs 150 per dozen to Rs 180 per dozen. Different qualities of apples are being sold in the range of Rs 60 per kg to Rs 250 per kg; Swat apricot is being sold at Rs 80-100 per kg, Quetta apricot at Rs 150 per kg and pear is available at Rs 150 per kg.


Riaz Haq said...

According to a spokesman of the market, the rates of vegetables at the Ramzan/Sasta Bazaars of Islamabad are as under:

Potato per kilogram is Rs 27, Potato Store Rs 23, Onion Rs 26, Tomato Rs 32, Ginger Rs 80, Garlic desi Rs 175, Garlic (China) Rs 175, Lemon desi Rs 98, Lady Finger Rs 50, Pumpkin Rs 46, Brinjal Rs 34, Peas Rs 118, Farsh Bean Rs 82, Tanda Walaiti Rs 55, Tanda desi Rs 64, Cucumber Rs 27, Capsicum Rs 45/32, Green Chilli Rs 38, Cauliflower Rs 68/38, Cabbage Rs 40, Bitter gourd Rs 37, Green Zucchini Rs 40, Spinach Rs 34, Turnip Rs 45, Maroo Rs 48, Yam Rs 55, Carrot Rs 55, Chicken Rs 139 per kg and Egg per dozen Rs 78.

Likewise, he said that rates of fruits per kilogram of high and medium quality in Sasta Bazaars are as follows: Apple Kala Kulo Rs 145/125, Apple White Rs 95/65, Apple Ambri Rs 82/56, Apple China Rs 200/180, Apple New Zealand Rs 256/232, Banana Pak Rs 130/85, Banana Ind Rs 165/135, Pear China Rs 165, Apricot Swat Rs 105/85, Apricot Kabli Rs 140/125, Melon desi Rs 30/22, White Melon Rs 28/20, Water Melon Rs 20/15, Peach Rs 95/65, Mango Sundhari Rs 110/85, Mango Maldeh Rs 62/45, Mango Almas Rs 47/35, Mango langra Rs 65/45, Mango Chaunsa White Rs 105/85, Mango Dosari Rs 76/50, Mango Desi Rs 55/35, Plum Rs 120/90, Garma Rs 58/35 and Mango Ratool Rs 138/95.

The spokesman has asked all the people to follow this list and inform authorities at 051-4867762 in case of any complaint against shopkeepers.

http://www.brecorder.com/pakistan/markets/306836-fruits-vegetables-prices-at-sasta-bazaars.html

Riaz Haq said...

Survey: #India is the cheapest place to live in the world, cheaper than neighbors #Nepal and #Pakistan

http://www.independent.co.uk/news/world/asia/india-cheapest-place-to-live-in-world-indian-economy-housing-market-a7095041.html

http://www.numbeo.com/cost-of-living/country_result.jsp?country=India

http://www.numbeo.com/cost-of-living/country_result.jsp?country=Pakistan

"In India, if you want quality, you will be paying high prices. It very much depends on who you are. You have to settle for many compromises to take advantage of the cheap prices."

Meanwhile, many Indians outside cities have felt the purchasing power of the rupee depreciate as inflation has been ongoing. The Indian government is now trying to keep inflation low.

And the rural state of Bihar in the north-east of India is one of the poorest regions in the whole of south Asia, according to a study by Oxford University.

Riaz Haq said...

India Gets Chana Dal Crisis Wrong - Subsidise People, Not Products

http://www.forbes.com/sites/timworstall/2016/07/01/india-gets-chana-dal-crisis-wrong-subsidise-people-not-products/#1ea18bd81467


Indian agriculture is having one of those passing problems at present, the prices of certain foods are rising well outside usual ranges. India’s a country that has still great swathes of absolute poverty, such price rises cause real suffering. Thus something should be done. But it’s important that the right thing be done rather than the wrong. India’s welfare system in general is moving, slowly enough, to using the right methods. But what’s happening here over chana dal and other pulses is showing us the wrong way to do it. The correct answer is to be subsidising people, not specific products. This is different from but allied to Amartya Sen’s point that modern famines don’t happen because of a lack of food but because of a lack of purchasing power. In the face of these changing prices we want to boost the purchasing power of the poor, not produce subsidised portions of those now more expensive foods.

Firstly, we simply don’t want to be doing these things through something as cumbersome as a bureaucracy. Especially not something as cumbersome as the Indian bureaucracy. We would very much prefer whatever aid we provide to be available quickly. It’s very much easier to move money around than it is food so that’s what we should be doing. As when we deal with famine itself (please note, we are not talking about famine in India at present, not at all, just price rises). Send in money so that people can purchase the food which exists rather than sending in food itself. It’s really much, much, quicker.

The government decided to import 7,500 tonnes of chana and masoor dal in the coming days to boost domestic supply and curb prices. The pulses issue was discussed in detail in the meeting of Management Committee of Price Stabilisation Fund, chaired by Consumer Affairs Secretary Hem Pande here.

We also have another manner of managing these things. Those markets – if the domestic price of these pulses is rising above the world price then importers will import them. And again we come back to that Sen point – there must be effective demand at those higher prices. Which is why we just give money to poor people.

Drought has shrunk the total output of chana dal production by 40-45% this year, traders said. It has seen doubling of its wholesale rate this year over the same period in 2015 and this trend will have a telling effect on besan (made from chana dal) sweets this festive season.


Riaz Haq said...

Parched Land. Farmer #Suicides. Dead Animals. Forced Migration: #Drought Is Crippling Rural #India http://www.huffingtonpost.com/entry/india-drought-bundelkhand_us_5769a229e4b0c0252e778b9a … via @TheWorldPost

TIKAMGARH DISTRICT, India — For years, Lakshman Pal, 28, planted wheat and tended to his small field here. Each season, he hoped for rain. He looked up at the sky and waited for the showers that normally came. But for the past two years, they’ve hardly come at all. His crops eventually withered and died, crumbling to dust.

In early May, Pal returned from a spell of work in the distant state of Haryana, where he earned 250 rupees, or about $3.70, a day toiling long hours as a laborer. Fifteen other members of his family also migrated to various cities, searching for work and leaving behind women, children, the elderly and a handful of younger men to tend to the land. Pal borrowed money from the bank and a local moneylender to pay for medical treatment for his mother, who has cancer, and he was now deep in debt.

Back in Khakron, his village, Pal found himself not only in debt, but also with no water for his fields, no crops to harvest, no food for his family, no money for his mother’s treatment. He awoke one morning in mid-May, before dawn, and killed himself in his field.

Life is precarious in Bundelkhand, a vast rural landscape in north-central India that I drove through on a weeklong trip for The WorldPost in late May. The region, which consists of over 27,000 square miles across the states Uttar Pradesh and Madhya Pradesh, is one of India’s poorest areas, populated mostly by poverty-stricken farmers living in rudimentary villages. And now, it’s suffocating under an intense drought that’s affected a staggering 330 million people nationwide.

As the crisis deepens, the country that celebrated the 1960s agricultural revolution and a resulting boom in production of food grains is now seeing its farmers dying in debt and despair. In many cases, farmers accrue debt from loans for seeds, fertilizers and equipment. And the debt can carry down to their children and grandchildren.

Stories like Pal’s are repeated with frightening regularity all over the country. More than 2,200 farmers reportedly died by suicide in just one state — Madhya Pradesh — between April and October of last year, and more than 12,000 reportedly killed themselves across the country in 2014.

Severe dry spells have become much more common in Bundelkhand in recent years, a consequence of both climate change and the lack of a robust irrigation system, turning this historically dry area into a parched and barren land. Groundwater reservoirs have been dangerously depleted, and agriculture has stagnated. Temperatures are consistently over 100 degrees Fahrenheit and sometimes top 115. Since the early 2000s, droughts have become worse and the annual monsoon, which is critical for agriculture, has become erratic. The drought was especially bad from 2003 to 2010. In 2011, the region experienced much higher rainfall — in some districts, more than 500 percent above normal — and flooding was widespread. Disappointing monsoons in 2012 and 2013 gave way to drought again in 2014. It hasn’t abated, and the network of lakes, rivers and wells, which had always supported the people, have gone almost completely dry.

Riaz Haq said...

How food inflation has removed #dal, #potato & #tomato from the plate of aam aadmi in #Modi's #India via @indiacom

Last year it was onion that made the middle-class cry. This year soaring price of tomatoes, potatoes and pulses have made the life of aam aadmi difficult.

http://www.india.com/business/triple-price-hike-how-food-inflation-has-removed-dal-potato-tomato-from-the-plate-of-aam-aadmi-1267009/


Last year it was onion that made the middle-class cry. This year soaring price of tomatoes, potatoes and pulses have made the life of aam aadmi difficult. Despite government’s efforts to control the prices of essential commodities, a huge increase in the cost of tomatoes, potatoes, arhar dal and urad dal has largely hit the common man of the country.
According to the Wholesale Price Index or WPI data released on Tuesday, vegetable inflation rose sharply from 2.21 per cent in April to 12.94 per cent the next month. The inflation level at highest in 19 months. Union Finance Minister Arun Jaitley held a high level meeting to fix the strategy to keep prices in check which was attended by Transport Minister Nitin Gadkari, Food Minister Ram Vilas Paswan, Agriculture Minister Radha Mohan Singh and Commerce Minister Nirmala Sitharaman and Chief Economic Advisor Arvind Subramanian. (ALSO READ: Pulses costlier due to poor rainfall, reduced imports: Ram Vilas Paswan)



Rising Inflation: The rising prices of vegetables are major concern. Due to crop damage, Tomato prices have doubled to an average Rs. 80 a kilogram across the country. In Hyderabad, tomatoes are being sold at Rs 100 per kilogram. Potato prices are up to almost Rs 20 per kilogram. Drought situation is several parts of the India, production of pulses were badly hit last year. Country’s pulses production is estimated to be 17.06 million tonnes in 2015-16 crop year, while the demand of pulses in India is pegged at 23.5 tonnes.

According to data published by the department of consumer affairs and the National Horticulture Board, prices of tomatoes have increased by 100-200 per cent in most cities between April and June this year. Crop damage in West Bengal and a dip in production have risen the prices of potatoes in the country.

Price rise of pulses: Pulses inflation has remained in double digits since January 2015. Arhar dal is currently costing as much as Rs 170 per kilogram. Urad dal is selling for as high as Rs 196 per kilogram. “In the last two years, arhar dal prices have doubled and the cost of urad has increased by around 120 per cent. Even the price of chana dal, which is produced in large quantities and is usually unaffected by inflation, has risen 85% in this period, in Delhi,” a Times of India report said.
Following are today’s pulses rates (in Rs per quintal): Urad Rs 10,800-12,300, Urad Chilka (local) Rs 11,100-11,200, Urad best Rs 11,200-11,700, Dhoya Rs 11,600-11,900, Moong Rs 6,200-6,800, Dal Moong Chilka local Rs 6,750-7,150, Moong Dhoya local Rs 7,150-7,650 and best quality Rs 7,650-7,850. Masoor small Rs 6,050-6,350, bold Rs 6,100-6,400, Dal Masoor local Rs 6,600-7,100, best quality Rs 6,700-7,200, Malka local Rs 7,000-7,300, best Rs 7,100-7,400, Moth Rs 5,500-5,900, Arhar Rs 9,200, Dal Arhar Dara Rs 12,100-13,800.
Gram Rs 7,000-7,500, Gram dal (local) Rs 7,150-7,450, best quality Rs 7,600-7,700, Besan (35 kg), Shakti Bhog Rs 3,100,Rajdhani Rs 3,100, Rajma Chitra Rs 5,600-6,950, Kabuli Gram small Rs 8,000-9,500, Dabra Rs 2,700-2,800, Imported Rs 4,700-5,100, Lobia Rs 5,400-5,600, Peas white Rs 3,400-3,425 and green Rs 3,600-3,700.

Riaz Haq said...

Mangoes are grown and consumed worldwide. Costa Rica hopes to take advantage of an early end of the Peruvian season. Mexico's production is about to arrive. In general, the figures for many countries in Latin America are lower than last season. On the other side of the ocean, Australia sees more international demand for the country's mangoes. Also, Indonesia, Pakistan and Bangladesh are optimistic. For these countries, the Middle East, among other destinations, is a key market. Kenya is also making progress and exporting to more countries. Israel is trying to gain a firm foothold in Europe, where prices are currently high because of a sluggish supply and good demand in the run-up to Easter. Good prices are also paid for the fruit in the United States.

This week, we look at the situation in Latin America, Mexico, Nicaragua, Guatemala, Peru, Costa Rica, Panama, Australia, Indonesia, Pakistan, Bangladesh, Kenya, Israel, the United States, Europe, France, Poland, Sweden and the Netherlands.

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Pakistan is expanding export markets
The production volumes should match the initial estimates, with an abundant harvest expected. Exports are expected to reach 215,000 tonnes thanks to improvements in the packaging and training of the growers. Furthermore, some new markets have been added to the list of export destinations: Portugal, Finland, China and Russia. Japan, too, has recently opened its borders to Pakistani mangoes. The export season should last until September.

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http://www.freshplaza.com/article/155602/OVERVIEW-GLOBAL-MANGO-MARKET

Riaz Haq said...

#Pakistan Inflation hit 13-year low in FY16 but price rises affect tomatoes (up 61%) potatoes (up 45.5%) in #Ramadan

http://www.dawn.com/news/1268504/inflation-hit-13-year-low-in-fy16

Pakistan’s average inflation came in at 2.86 per cent in the just-ended fiscal year, its lowest level in over 13 years, the Pakistan Bureau of Statistics said on Friday.

Falling oil and commodity prices, a stable rupee and monitoring of prices at both federal and provincial levels were major reasons behind low inflation.

Average inflation stood at 4.53pc in 2014-15, 8.62pc in 2013-14 and 7.36pc in 2012-13.

Inflation measured through the consumer price index (CPI) — the indicator that tracks prices of 481 commodities every month in the country’s urban centres — inched up to 3.19pc in June from 3.17pc in May.

A finance ministry report said prudent fiscal and monetary policies and a few other factors helped in moderating the headline inflation and other inflationary indicators, ie core inflation, food inflation, sensitive price indicator (SPI) and wholesale price index (WPI).

It said the government had also passed on the benefits of lower oil prices to domestic consumers, which helped stabilise prices of commodities included in the CPI basket.

Food inflation, which has 37pc weight in CPI basket, was 2.3pc in June as compared to 3.2pc in the same month of the last year.

This decline in food inflation was the outcome of a 1.82pc fall in prices of perishable food items.

On a month-on-month basis, food inflation rose 1.4pc in June, mainly because of a 7.87pc increase in prices of perishable products and 0.19pc in non-perishable products.

The food items whose prices increased included tomatoes (61pc), potatoes (45.5pc), eggs (8.5pc), fresh vegetables (5.9pc), gram whole (5.7pc), fresh fruits (2.5pc), besan (2.4pc), pulse gram (2.2pc), and rice (1.4pc).

Core inflation, measured by excluding volatile food and energy prices, was recorded at 4.6pc in June 2016, slightly up 0.1pc from the previous month. Falling inflation has also encouraged the State Bank of Pakistan (SBP) to lower its key interest rate at a 42-year low of 5.75pc.

Core inflation has remained subdued since November last year because of a tighter monetary policy and reduction in food and fuel prices.

The finance ministry report said a 6.26pc decline in government sector borrowing during July-March 2015-16 has resulted in low core inflation. The retirement of Rs534.6 billion by the government to the SBP during the period under review also helped in lowering core inflation.

The non-food inflation was 3.8pc during the period under review as compared to 3.9pc in the previous month.

Among the non-food group, education index increased by 0.18pc and health by 0.13pc in June as compared to the previous month. The highest increase of 4.24pc was witnessed in the index of alcoholic beverages and tobacco.

Average inflation measured through the SPI rose 1.31pc in July-June 2015-16, while WPI was negative 1.05pc.

Lower WPI reflects less demand for domestic commodities, mainly because of low purchasing power. The entrance of the manufacturing sector into a negative growth indicates deflation in the economy.

Riaz Haq said...

I don't think India's current food problems are related to distribution as some suggest; the real issue is insufficient production and supply due to multi-year drought. Indian farmers are heavily dependent on good monsoon rains. That's why an Indian farmer kills himself or herself every 30 minutes. Only 35% of India's farm land is irrigated versus over 70% of farm land in Pakistan.

http://www.riazhaq.com/2013/11/indias-agrarian-crisis-farmer-commits.html

Riaz Haq said...

#Dutch FrieslandCampina buys #Engro Foods. Targets world's 3rd largest milk market (38 billion liters) in #Pakistan

http://www.retaildetail.eu/en/news/food/frieslandcampina-targets-market-pakistan

FrieslandCampina has acquired 51 % of Engro Foods Limited, the second largest dairy producer in Pakistan. It enables the company to take a major leap forward in Central Asia.
Shift to packaged dairy
Pakistan is the third largest milk-manufacturing country in the world, with 38 billion liters on an annual basis. FrieslandCampina wants to take advantage of the shift to packaged dairy products in Pakistan: not even 10 % of milk consumption comes from processed and packaged milk in Pakistan, but FrieslandCampina expects that to change in the near future.

“Thanks to this well-organized and very successful company, we have obtained a strong position in the Pakistani dairy market. A growing middle class is switching to processed and packaged milk in Pakistan and Engro Foods provides a platform to build on. This acquisition will contribute to the value proposition we want to give our member dairy manufacturers. We will also help develop the agricultural industry in Pakistan with our extensive knowledge on the dairy manufacturing process and thanks to our Dairy Development Programme", CEO Roelof Joosten said.

“This is a very important event for us. Engro Foods has been very successful ever since its launch in 2006 and has since become one of the most respected companies in Pakistan. Our FrieslandCampina collaboration will definitely have a huge impact on the dairy value chain in Pakistan and will also enable Engro Foods to present the consumer with additional value thanks to an improved product range, while it will also help improve our innovation levels", Engro CEO Babur Sultan added.

Riaz Haq said...

#Dutch company acquires 51% stake in #Pakistan's #Engro for over $448m to target world's 3rd largest milk market

http://tribune.com.pk/story/1136018/dutch-company-acquires-majority-stake-pakistans-engro-foods-448-million/


KARACHI: Engro Corporation has signed an agreement with a Netherlands-based dairy company for the sale of up to 51% shareholding in Engro Foods at an estimated price of $448 million, a securities filing said on Monday.

Engro Corporation currently controls approximately 87% shareholding in Engro Foods while the general public owns the remaining outstanding shares. The deal will take place at Rs120 per share, which reflects a discount of about 26% to Engro Foods’ current share price of Rs163.

The majority stake in Engro Foods will be bought by a legal entity in which Dutch dairy cooperative FrieslandCampina will hold approximately 80% shares. International Finance Corporation (IFC) and Dutch development bank FMO will hold the remaining shares in the legal entity.

The share price of Engro Corporation rose 1.4% to Rs337.6 on Monday while the stock of Engro Foods shed 5% to close at Rs155.17 per share.

Engro Fertilizers CEO says Rs390 cut expected

Engro Corporation said in a statement it will stay on as a “significant partner and shareholder” under the new company structure. The stake of Engro Corporation in Engro Foods will likely be around 36% post-transaction.

The Dutch company is required under the local takeover laws to make an attempt to purchase at least half of the shareholding currently owned by the general public.

The provision is supposed to ensure that ordinary shareholders also benefit in case the sponsors of a listed company sell their stake in a major deal. This means general investors will also have a chance to avail the public offer extended by FrieslandCampina to sell at least half of their 13% current holding in Engro Foods.

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In a statement on Monday, FrieslandCampina said it expects to benefit from the conversion of the Pakistani market from loose to packaged dairy consumption. At present, less than 10% of tradable milk consumed in Pakistan is processed and offered in packages, it said. The conversion is expected to accelerate in the near future as a result of the growing middle-income class, a desire for higher quality milk as well as the increasing urbanisation, it added.

Topline Securities said Engro Corporation will generate cash of around Rs47 billion, part of which will most likely be invested in energy-related projects with a higher rate of return.

Engro Foods contributed more than a quarter in the corporation’s revenues last year. Therefore, its sale will result in a decline of around Rs4 per share in the holding company’s earnings, as per the workings of Topline Securities.

“However, this decline will be compensated if the sale proceeds are either put in the bank or used to pay off debt. As of the latest quarterly accounts, Engro had Rs72 billion of debt on its books,” it said.

Riaz Haq said...

#Dutch company acquires 51% stake in #Pakistan's #Engro for over $448m to target world's 3rd largest milk market

http://tribune.com.pk/story/1136018/dutch-company-acquires-majority-stake-pakistans-engro-foods-448-million/


KARACHI: Engro Corporation has signed an agreement with a Netherlands-based dairy company for the sale of up to 51% shareholding in Engro Foods at an estimated price of $448 million, a securities filing said on Monday.

Engro Corporation currently controls approximately 87% shareholding in Engro Foods while the general public owns the remaining outstanding shares. The deal will take place at Rs120 per share, which reflects a discount of about 26% to Engro Foods’ current share price of Rs163.

The majority stake in Engro Foods will be bought by a legal entity in which Dutch dairy cooperative FrieslandCampina will hold approximately 80% shares. International Finance Corporation (IFC) and Dutch development bank FMO will hold the remaining shares in the legal entity.

The share price of Engro Corporation rose 1.4% to Rs337.6 on Monday while the stock of Engro Foods shed 5% to close at Rs155.17 per share.

Engro Fertilizers CEO says Rs390 cut expected

Engro Corporation said in a statement it will stay on as a “significant partner and shareholder” under the new company structure. The stake of Engro Corporation in Engro Foods will likely be around 36% post-transaction.

The Dutch company is required under the local takeover laws to make an attempt to purchase at least half of the shareholding currently owned by the general public.

The provision is supposed to ensure that ordinary shareholders also benefit in case the sponsors of a listed company sell their stake in a major deal. This means general investors will also have a chance to avail the public offer extended by FrieslandCampina to sell at least half of their 13% current holding in Engro Foods.

-------

In a statement on Monday, FrieslandCampina said it expects to benefit from the conversion of the Pakistani market from loose to packaged dairy consumption. At present, less than 10% of tradable milk consumed in Pakistan is processed and offered in packages, it said. The conversion is expected to accelerate in the near future as a result of the growing middle-income class, a desire for higher quality milk as well as the increasing urbanisation, it added.

Topline Securities said Engro Corporation will generate cash of around Rs47 billion, part of which will most likely be invested in energy-related projects with a higher rate of return.

Engro Foods contributed more than a quarter in the corporation’s revenues last year. Therefore, its sale will result in a decline of around Rs4 per share in the holding company’s earnings, as per the workings of Topline Securities.

“However, this decline will be compensated if the sale proceeds are either put in the bank or used to pay off debt. As of the latest quarterly accounts, Engro had Rs72 billion of debt on its books,” it said.

Yechury said...

India's Wholesale Price Index, July shoots up 3.55%; Pulses by (35.76%), Potatoes (58.78%), Vegetables (28.05%)#AchheDin