Govt urged to set up wheat buying centres

By Saleem Shaikh

Daily Dawn

KARACHI, Feb 28: Wheat harvesting has started in lower Sindh districts but the government has not yet set up procurement centres.

According to the information gathered from the growers the harvesting began from February 15, in Umerkot, Badin, Mirpurkhas and some parts of Sanghar districts. The harvesting in central Sindh is also picking up.

The province is likely to have bumper wheat crop, but the key challenge for the provincial food department would be to procure the grain on time.

The delay in procurement hurts small farmers as they are compelled to sell their produce to the middlemen and the traders at a price below the official support price, said Amin Memon, chairman Lower Sindh Growers Association.

Sindh Chamber of Agriculture official Nabi Bux said that no efforts had been made by the food department to arrange gunny bags and setting up wheat picking centres in the lower Sindh.

Secretary Agriculture Agha Jan Akhtar said that wheat sowing in the province would touch 11,00,000 hectares against a target of 10,31,000 hectares and it is hoped that the wheat output would also surpass the target.

“We are expecting some 3.8 million tons of wheat production against a target of 3.682 million tons”, he said. “Fruits of bumper wheat output may go down the drain if provincial food department failed to set up wheat buying centres immediately”, he warned.

A spokesman of the food department Muneer Jalbani claimed that efforts had been made to purchase polypropylene (PP) and gunny bags and procurement centres would be set up in wheat growing districts before March 15.

He said that 1.3 million tons of wheat procurement target has been set for the food department for 2011 Rabi season, which would be achieved before June.

He said that a tender was floated on January 29, for buying 10 million PP bags (50kg each), which would be distributed among the wheat growers by April 1.

However, some officials in the food department hardly see any possibility of the wheat procurement centres to become operational before April 1.

“The buying centres are established only after the Sindh government issues orders. But, so far no orders have been made to the food department”, they argued.

Mr Jalbani, however, insisted that the food department was determined to make 350 procurement centres operational by March 15, in lower Sindh and by April 1, in upper Sindh districts.

Weblink: http://www.dawn.com/2011/03/01/govt-urged-to-set-up-wheat-buying-centres.html

47,743 tons wheat seeds distributed in Sindh

By Saleem Shaikh

February 15, 2011

Daily Dawn

KARACHI, Feb 14: The Sindh government has distributed tons of wheat seeds and urea among the flood-hit farmers free of cost under its Rabi assistance plan.

However, the officials in the provincial agriculture department hope the step would help to rehabilitate the agriculture in flood-hit right bank districts and pave the way for robust Kharif sowing.

The federal Economic Coordination Committee (ECC) approved the plan worth Rs3.36 billion in December last year. According to the plan details, the federal government agreed to pay the half of the amount, Rs1.68 billion to the Sindh government while the rest was to be raised by the provincial government.

According to officials in the agriculture department till February 1, around 47,848 tons of wheat seeds and 14,030 tons of urea fertiliser had been distributed against requirements of 60,460 tons and 38,900 tons, respectively among the bona-fide flood-hit farmers.

The districts where the free farm inputs had been distributed are: Jacobabad, Kashmore-Kandhkot, Qambar-Shahdadkot, Shikarpur, Dadu, Thatta, Jamshoro, Larkana, Khairpur, Ghotki, Sukkur, Nausheroferoz, Shaheed Benazirabad, Matiyari and Tando Mohammad Khan, said Ashfaq Ahmed
Soomro, Additional Secretary of the agriculture department.

The department’s spokesman said that although the process of the distribution of free farm inputs was almost over, it continued in upper Sindh flood-hit areas.

“Because, the upper Sindh districts have late wheat sowing pattern, the flood-hit wheat growers can still obtain the free inputs,” he added.

The spokesman said that the provincial government was providing the fertilisers and seeds to each eligible farmer worth Rs30,000 on the basis of
area of affect land.

Weblink: http://www.dawn.com/2011/02/15/47743-tons-wheat-seeds-distributed-in-sindh.html

Rise in urea price frustrates Rabi Growers in Sindh

By Saleem Shaikh
January 6, 2011
Recent 23 per cent rise in prices of urea fertiliser, an important farm input and cause of good farm yield, its black marketing and hoarding hoarding have frustrated the Rabi growers, who are struggling to help flood-hit agriculture sector recover. The farmers have called for withdrawal of the undue increase in urea prices; otherwise, it would affect the farm production adversely.

The farmers’ leaders blame agriculture and district government officials are working hands in gloves with those traders involved in hoarding, black marketing of the urea and phosphate fertilisers.

Unavailability of the urea to the farmers in time and at the appropriate prices would only hurt yields of the Rabi crops and intensify food insecurity further in the province.

“The issue of rising urea prices, its black marketing and hoarding has been raised with the local agriculture officials and those sitting on the government benches in the Sindh Assembly. But, our complaints have gone unheeded and unaddressed,” said Akhund Ghulam Mohammad, general secretary of the Sindh Chamber of Agriculture (SCA).

The growers would be compelled to reduce use of urea in their fields, if recent rise was not withdrawn, he said.

Random conversations with growers point to the fact that they have significantly reduced application of fertilisers because their prices have been steadily spiraling, which has emerged to be, among others, a main cause of falling levels of yields of Rabi and Kharif crops.

Till October 30, the urea (Sona FFC brand) was selling between Rs850-Rs853 per bag of 50 kilogramme while another prominent urea brand (Urea Kissan of NFC) was at around Rs830 per bag of the same quantity across the province.

But, the manufacturers increased the urea prices to Rs1,040/per bag. But, traders in different parts of the province have further increased the urea price on their own and are selling between Rs1100-Rs1200.

So much so, the fertiliser traders have also induldged in artificial shortage of the key farm inputs at the time when the fields, on which the Rabi crops are being sown, direly need them (farm inputs).

Reports have also poured in that the fertiliser dealers are not keeping urea stocks in their godowns and instead allegedly hiding it elsewhere to earn huge profits.

“Despite provincial agriculture department’s clear instructions, the dealers have failed to maintain stocks of urea in their godowns and every time we visit their storage houses they tell us that they are out of stocks,” Said Nabi Khan Brohi, leader of Sindh Abadgar Board in Shahdadkot.

They growers have also slammed the district administrations, where black marketing and hoarding have become rampant despite escalation in its prices.

It is matter of disappointment that the role of agriculture deparment and DCOs is equal to nothing and they hardly visit the markets to contain the artificial shortage of the fertilisers and escalation in their prices. This has situation has rather encouraged the unscrupulous traders to exploite hapeless farmers, said disgruntled growers.

“We have brought the matter into notice of the district administrations and agriculture department officials to crack down on the hoarders, profiteers and unscrupulous traders, who are involved in unlawful price hike of the urea. But, the officials are reluctant to take action against them,” said Meher Ali Tunio, a prominent wheat grower in Larkana.

When contacted, some district coordination officers voiced their ignorance about the black marketing, hoarding and rise in their prices and refused to comment on the matter other than saying that they were trying to resolve the problems of the farmers.

Nevertheless, other district government officials of Shikarpur, Shahdadkot and Larkana districts said that if such was the situation then they would definitely bring such unscrupulous traders to book.

Meanwhile, the Sindh Abadgar Board has warned the Sindh government and the fertiliser manufacturers that it would move the Sindh High Court against them, if the unjust and arbitrary rise in urea prices was not withdrawn and its artificial shortage not brought to an end.



Abdul Majeed Nizamni, president Sindh Abadgar Board, said that recent hike in urea prices would force growers to cut the use of the urea, which could cause decline of some 2.72 million tons in overall production of Rabi crops.

“If the urea prices are not brought down to Rs850/ bag, then it would increase the food export bill to $6 billion for the FY 2010-11,” he forewarned.

The total food import bill has touched $2.15 billion in July-Nov, 2010 as compared to $1.3 billion in the same period of 2009.

Member of SCA, Anwar Bachani, said that the chamber had already informed the federal government about the unjust hike in the urea price but it discovered that it had no idea about the gravity of the situation and the prices have been hiked without seeking permission of the federal Minister of Food, Agriculture and Livestock (Minfal).

Growers’ leaders believe that that repeated hikes in prices of fertilisers by the manufacturers without informing the relevant government departments was all happening due to absence of an effective regulatory body.

An official in the provincial agriculture department admits that some weeks back the fertiliser manufacturers had informed the federal government that there would be urea shortage of 250,000 tons and suggested its import to avoid the shortage or upsurge in prices.

“But, the Minfal ministry was hardly moved by the intimation and did not responded to the fast unfolding situation of urea shortage, which has led to the escalation of its prices,” said a senior official in the Sindh agriculture deparment, who preferred anonymity.

However, the farmers’ representatives have warned of steep fall in Rabi output, if the urea and phosphate was not available to the farmers in required quantity at the pre-November 2010 rates.

Sindh agriculture struggling for recovery

By Saleem Shaikh

January 3, 2011

THE coming Rabi crops are likely to show good performance if water availability is improved and provision is made for distribution of high-yield seeds, unadulterated fertilisers and unhindered agriculture credit.
Agriculture experts believe that timely recovery of the agriculture sector in the province depends on early draining out of floodwater from inundated farmlands, rehabilitation of damaged irrigation network and roads and provision of unhampered financial support and free farm inputs.
Although Sindh Minister for Irrigation Jam Saifullah Dharejo claimed that the flood-hit irrigation network would be restored by end of December, the situation remained unpromising as most of the breaches have not been repaired as yet.
Sindh irrigation department officials admit that rehabilitation of irrigation networks is very slow. “Though 80 percent floodwater has been flushed out of the flood-ravaged areas, only 660 out of some 2,138 breaches have been plugged so far and floodwater is still flowing through 1,478 breaches,” a senior irrigation official said quoting a report. But, Mehfooz Ursani, general secretary of the Sindh Abadgar Board (SAB), rejected official claims that 80 per cent floodwater had been drained out. He said that despite passage of four months since the flood hit Sindh, much of the affected areas still remains inundated seriously affecting Rabi sowing.
Sindh government has announced support packages and low mark-up loans for flood-hit farmers and drawn out plans to rehabilitate the damaged irrigation network to restore agro-based activity. But, progress is very slow, he said.
Tight financial situation of the provincial government is also hindering the launching of support packages for farmers and expediting process of plugging irrigation network breaches.
Sindh Agriculture Secretary Agha Jan Akhtar hopes that wheat sowing target will be achieved, because major wheat growing areas on the left bank of the Indus River remained unaffected during the floods.
“Efforts are being made to encourage the left bank growers to grow more wheat. Initiatives have already been taken to resolve the cane price issue between the growers and the millers,” he remarked.
The agriculture secretary said that minor crops sowing was also in full swing in the lowing-lying areas on the right side of Indus River, from where water has been pumped out and hopes for good sowing of minor crops particularly pulses and vegetables and fodder were bright.
Amin Thebo, director crop reporting, said that sowing of vegetables, have recently picked up pace in left bank areas that were under cane crop.
“Reports of wheat sowing and vegetable cultivation have poured in recently from the scattered cane growing areas in the right bank areas, where fields have been cleared of cane,” he remarked.
While the floodwater is likely to be flushed out completely by March 2011, improving Kharif sowing.
Sindh’s agriculture has suffered enormous damages in recent floods and rains but no significant measures have been taken so far for its recovery.
Overall damage suffered by agriculture has been estimated at 2.3 billion dollars, according to provincial government’s revised figures. “The province’s paddy crop sown on around 0.7-0.8 million acres was washed away, causing losses to the tune of Rs60 billion,” said a provincial agriculture department official.
Sindh agriculture department officials estimate production of around 663,000 tons of rice in the province against the target of 2.039 million tons for Kharif 2010. The shortfall of 60 per cent is because of the fact that rice on around 850,000 acres, against the target of 1.586 million acres, had been washed away by floods.
The cotton crop, sown on either side of the Indus River, was also hit by the flood on the right bank.
Agriculture department officials said the province, which achieved a record production last year, has experienced short crop this year by around 13.63 per cent to 3.321 million bales recorded till December 15, 2010 as compared to 3.845 million bales in the corresponding period of last year.
As far as sugarcane is concerned, it was cultivated on much less area in the province due to water scarcity. Unattractive support price, ill-and exploitative attitude of sugar millers and lack of government interest has compelled the growers to cut the area under cane cultivation.
Despite water shortages, rains and unfavorable climatic conditions during FY10, the province’s agriculture sector is expected to show a reasonable performance. Contrary to expectations. The performance of minor crops is to remain more or less satisfactory due to switch over of area from major (for example: sugarcane) to minor crops.
THE coming Rabi crops are likely to show improved performance only if water availability is improved and provision are made for high-yield seeds, unadulterated fertilisers and unhindered agriculture credit loans.
Agriculture experts say that timely recovery of the agriculture sector and its bright outlook depends on early draining out of floodwater from inundated farmlands, rehabilitation of damaged irrigation network and roads and provision of unhampered financial support and free farm inputs.
Although Sindh Minister for Irrigation Jam Saifullah Dharejo claimed tat the flood-hit irrigation network would be restored by end of December, the situation remains unpromising For, most of the breaches have not been repaired as yet.
Officials in the provincial irrigation department admit that rehabilitation of irrigation networks is very slow. “Though 80 percent floodwater has been flushed out of the flood-ravaged areas, only 660 out of some 2,138 breaches have been plugged so far and floodwater is still flowing through 1,478 breaches,” a senior irrigation official said quoting a report.
But, Mehfooz Ursani, general secretary of the Sindh Abadgar Board (SAB), rejected official claims that 80 per cent floodwater had been flushed out.
He said that despite passage of four months since the flood hit Sindh, much of the affected areas still remain inundated. Therefore, Rabi sowing would suffer seriously.
The provincial government has announced support packages and low mark-up loans for flood-hit farmers and drawn out plans to rehabilitate the damaged irrigation network to restore agro-based activity. But, progress is very slow, he said.
Tight financial situation of the Sindh government is also hindering the launching of support packages for farmers and expediting process of plugging the breaches in the irrigation network.
Sindh Agriculture Secretary Agha Jan Akhtar hopes that wheat sowing target will be achieved, because major wheat growing areas on the left bank of the Indus River remained unharmed during the floods.
“Efforts are being made to encourage the left bank growers to grow more wheat. Initiatives have already been taken to resolve the cane price issue between the growers and the millers,” he remarked.
The agriculture secretary said that minor crops sowing was also in full swing in the lowing-lying areas on the right side of Indus River, from where water has been pumped out and hopes for good sowing of minor crops particularly pulses and vegetables and fodder were bright.
Amin Thebo, director crop reporting, said that sowing of major Rabi crops, particularly vegetables, have recently picked up pace in left bank areas that were under cane crop.
“Reports of wheat sowing and vegetable cultivation of Rabi season have poured in recently from the scattered cane growing areas in the right bank areas, where fields have been cleared of cane,” he remarked.
Agriculture experts said that although 80 per cent of low-lying areas on the right bank are being claimed to have been brought under Rabi crops while the floodwater is unlikely to be flushed out completely before March 2011. Nevertheless, chances are bright for Kharif sowing of FY 2011.

http://www.dawn.com/2011/01/03/sindh-agriculture-struggling-for-recovery.html

Financing Rabi Sowing

By Saleem Shaikh

Monday, 18 Oct, 2010 | 01:14 AM PST |

THE Sindh government’s efforts to boost Rabi cultivation may receive a setback if banks do not fully cater to the credit needs of the flood-ravaged growers.

Farmers complain that banks are risk-averse facing financial squeeze, particularly due to the recent sharp increase in their non-performing loans in agriculture sector, which has been devastated by the floods.

While significant amount of standing Kharif crops, farming machines, seed stocks for Rabi crops and fertilisers have been washed away, the farmers are less likely to be able to undertake Rabi sowing on their own. And, therefore, “financial assistance for the flood-hit farmers is a must,” the agriculture economists believe.

Displaced by the ravaging floods, the financially-battered farmers are willing to go back to their fields and get engaged in Rabi sowing. But, they need seed, fertiliser, DAP, pesticides and farming tools for ploughing and land leveling, for which they should have an easy access to financial support.

Reports that growers are facing obstacles in obtaining credit loans from banks in flood-ravaged districts of the province have surfaced recently. Farmer leaders say, “when they visit banks for farm credit they are discouraged in different ways.”

“Bank officials tell farmers that they have been directed not to sanction any credit without valid guarantees,” said a farmer. “Other than government, who else can provide guarantees to such hapless farmers who have lost everything and are now penniless,” he questions.

“In this hour of need these farmers are looking towards the government to rescue them from the misery with financial support for raising their crops,” said Akhund Ghulam Mohammad, general secretary of the Sindh Chamber of Agriculture.

On September 24, following deliberation on reviving flood-hit agriculture in Sindh between the provincial government and the State Bank governor, banks were approached to provide agriculture loans to flood-hit farmers. But the banks, in a reply to the provincial planning and development department’s request, questioned the government’s proposal and said it did not meet (banks’) certain criteria for sanctioning loans.

“They ask for surety measures,” said an official in the economic planning section of the provincial P&DD.

Another official in the provincial finance department said that the provincial government had brought the matter of banks’ reluctance to farm credit to the notice of the SBP and asked it to help sort out the matter.

Meanwhile, the provincial government has also tried to know banks’ viewpoint through the SBP if they would provide loans to farmers against ‘Form VII’ (ownership deed) and possession certificates supported with guarantees and undertakings from the provincial revenue department; and that the farmers’ passbooks would be issued to them within specified time, a senior official in the provincial revenue department said.

But the banks, an official told this scribe, have declined to accept such proposals. Instead, they have demanded record of average sales value over three years, number of produce index units (PIUs) and credit history of borrowers, which would help the lending banks to evaluate value of farm land to be offered as collateral.

An official in a bank’s main branch in Karachi said the banks had refused to accept the ownership deed on the ground that it was not possible to verify it as the revenue record of the flood-hit farmers might have been destroyed.

He said that banks feared default on such risk-prone farm loans and subsequent litigations against the defaulting farmers. The proposed undertaking by the provincial Board of Revenue (BoR) would not have any legal validity in establishing their claim over a property in a court of law.

In the first week of October, an official in the central bank’s farm credit department conveyed to provincial P&DD secretary Naheed Durrani that the banks would sanction loans to farmers only if the government furnished a ‘provisional credit surety’ to banks up to the loan amount in conjunction with the markup till the time the charge was created on the passbook in favour of the banks in conformity with the Commercial and Industrial Purposes Act 1973.

One of the major reasons behind the banks’ evident wariness towards loaning the farming sector is that recent floods have raised the NPLs, said a senior bank official.

The central bank estimates these NPLs to be over Rs28 billion, according to the preliminary data of the SBP.

The bankers say that the flood-hit agriculture sector is in the worst shape, which needs a hefty amount for revival. “Not only have the infrastructure but also the land been ravaged by the deluge. It means preparation of the land for cultivation would be a difficult task and will not be possible without huge financial investments. However, it is not going to happen until the government ensures its increased and active participation,” they opined.

Officials in the provincial agriculture department state: “We have chalked out a plan for the revival of farmlands in the province from where over 60-65 farmers took refugee after the deluge battered their crops and villages. But, the ‘agriculture revival plan’ will be of no use if the farmers fail to get hassle-free access to farm credit on low markup.”

Available on Dawn Newspaper's website:

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