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Agriculture In Pakistan

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Autor:  anton  08 June 2011
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EXECUTIVE SUMMARY

In order to achieve full employment and raise its entire population above the poverty line by the year 2006-07, Pakistan needs to create additional employment for 100 million persons and raise the incomes of millions of under-employed persons. This report presents a program to achieve these goals utilizing the country's competitive advantage in labour-intensive agricultural crops and allied industries.

Misfortunes can happen to some very good products. One of the major reasons for such mishappenings, is that industries and organizations fail to realize the importance of a well-planned process of new or existing product development. They do not acknowledge that “ change is the only constant thing in this world” and as trends change it is important to change their products along with it too.

The objectives of the program are to double agricultural production in ten years, achieve complete nutritional self-sufficiency for the country, and generate millions in exports of sugar, fruits, vegetables, silk and cotton textiles. The program will generate a minimum growth rate of more than 4% in the agricultural sector.

New changes, are the lifeblood of companies. When firms do not change their level of production to meet the requirements of changing consumer desires, government regulations completion and a host of other factors: market share and profit usually decline. The life of a new industry often depends on how it conceives and produceses.

INTRODUCTION

Agriculture

Pakistan's principal natural resources are arable land, water, and extensive natural gas reserves. About 28% of Pakistan's total land area is under cultivation and is watered by one of the largest irrigation systems in the world. Agriculture accounts for about 24% of GDP and employs about 44% of the labor force. The most important crops are cotton, wheat, rice, sugarcane, fruits, and vegetables, which together account for more than 75% of the value of total crop output. Despite intensive farming practices, Pakistan remains a net food importer. Pakistan exports rice, cotton, fish, fruits, and vegetables and imports vegetable oil, wheat, cotton, pulses, and consumer foods.

The economic importance of agriculture has declined since independence, when its share of GDP was around 53%. Following the poor harvest of 1993, the government introduced agriculture assistance policies, including increased support prices for many agricultural commodities and expanded availability of agricultural credit. From 1993 to 1997, real growth in the agricultural sector averaged 5.7% but has since declined to less than 4%. Agricultural reforms, including increased wheat and oilseed production, play a central role in the government's economic reform package.

Role of agriculture in Pakistan.

ARTICLE (September 20 2006): Agriculture is a way of life, a tradition, which for centuries has shaped the economic life, culture and the thought of the people. The importance of agriculture in the development of a country cannot be ignored. Growth of agriculture is very much essential for achieving self-reliance in major food items.

Pakistan with a total land area of 79.61 million hectares is termed as an agricultural country because agricultural sector is the single largest sector of the country which not only provides food to 140 million people but also provides employment to about 48 % of the workforce. Beside, it also provides raw material to the industry, contributes about 60% to export earnings, and provides the livelihood for 70% rural population. In short the agriculture sector can rightly be called the backbone of our economy, as it contributes around Rs800 billion, almost one-fourth to the total GDP i.e. contributing 25% of the GDP.

However, the sector, which possesses the potential to be a lead sector in accelerating the economic growth and reducing poverty in Pakistan, has received less attention from successive governments in the past 57 years than other issues. According to the Economic Survey of Pakistan, this year the agricultural growth target came down to 2.6 percent from 4.1 percent of the last year i.e. 2004-05. The Survey also attributed the slippage in agriculture to the weak performance of both the major and minor crops. However, the government hesitated to accept its poor attention towards this important sector of the economy. Although, the government announced a comprehensive package for the farmers in June this year, it failed to satisfy the majority of the farming community as they are expressing their dissatisfaction over the incentives announced.

Agriculture is the single largest sector of the economy. It contributes 24 percent of the

GDP employs 48.4 percent of country’s workforce and is a major source of foreign exchange earnings. About 68% of the population lives in rural Pakistan and depends upon agriculture for sustenance.

The average annual growth rate of agriculture during 1990s was 4.5%. The highest growth rate of 11.7 percent was achieved in 1995-96 mainly due to increase in cotton, gram, milk and meat production. The sector touched the lowest negative growth rate of

5.3 percent in 1992-93 mainly due to decrease in cotton and sugarcane production.

The major crops as wheat, cotton, rice, sugarcane and maize account for 41% of value added and minor crops 10% in overall agriculture. Livestock has emerged as an important sub sector of agriculture. It accounts for 37.5% of agriculture value added and about 9.4% of the GDP. Similarly, fisheries play an important role in national income through export earnings.

Agricultural Policy

The agricultural sector is highly politicized because the majority of landowners have had considerable political influence. This has resulted in agricultural policy being steered towards supporting the production of major cash crops such as sugarcane, and exempting almost all agricultural income from taxes. However, following recent discussions with the IMF and World Bank on revenue collection in general, the present government is in the process of re-structuring the system to try and increase agricultural taxation. In addition, successive governments have extended considerable support to the sector by providing concessionary financing to farmers for the purchase of agricultural equipment (mainly tractors) and for building irrigation and drainage systems.

Three year Strategy

The Ministry of Agriculture is preparing a new three-year strategy. This will focus on the enhanced productivity of export oriented crops and ensure better marketing of exportable crops to get maximum prices of the produce. The new strategy will envisages to improve the performance of the agriculture sector including

Higher growth rate of agriculture as compared to population growth

Food security and self-reliance in food crops

Enhancing the productivity of wheat, rice, oil seeds, cotton and sugarcane

Land and water development for a sustained agricultural growth

Farm input supplies supported by appropriate technology to the farmers and at the users' end, balanced emphasis on all aspects of agricultural production including livestock, fisheries and forestry

Improving marketing of agricultural commodities, emphasis on agricultural research to generate innovative technology including biotechnology for rising per acre yield of land.

Improving the productivity of small farmers while encouraging the large farmers for utilization of modern technology.

GROWTH IN AGRICULTURE

Agriculture is a prime sector of national economy of Pakistan. The growth in agricultural sector and national economy moves hand in hand. The wide fluctuations in agricultural growth have greatly influenced national economy.

The sixties was a period of green revolution wherein dwarf cultivars of wheat and rice with high turnover of photosynthesis were introduced. This brought a quantum jump in productivity of these cereals. This resulted in an average growth rate of 5.1% during the decade.

The growth however retarded in seventies to 2.4%. The massive nationalization policy of the private enterprises had an overall negative impact on the economy. In addition there was a slow down in the process of varietals development and their release, paltering their potential. However, the seventies was a period of high public sector investments in agriculture sector. The important institutions commissioned during this decade are Tarbela Dam, Pakistan Agricultural Research Council, Training and Visit Program of Agricultural Extension, Seed Certification and Registration Departments/Seed Corporations, On Farm Water Management and Barani Area Development Programs. In addition Cotton Export Corporation and Rice Export Corporation were established during the decade to provide an export link to indigenous production.

INDUSTRY

The industrial sector of Pakistan can be divided into two main sector

- Mining & Quarrying

- Manufacturing

Large-Scale

Small-Scale

MINING & QUARRYING

The sector cover all mining & quarrying activities carried out in the country. The estimates of value added are based on the production data supplied by the Ministry of Petroleum

and Natural Resources and the Provincial Mineral Departments. The corresponding pithead/wellhead prices were derived from the Census of Mining Industries. The value added is derived by deducting the cost of inputs which is 20% of the value of gross output as indicated in the Mining Census, 1980-81. Current estimates are obtained by applyingWPI (Minerals).

MANUFACTURING

This sector is divided into two sub-sectors viz. large-scale manufacturing and small-scale manufacturing. Large-scale manufacturing covers the establishments registered under Section 2(j) and 5(i) of the Factories Act, 1934, (employing 10 or more workers) whereas small-scale manufacturing includes all such manufacturing establishments not covered there-under.

LARGE SCALE MANUFACTURING

There are two sources of data on large-scale manufacturing - Annual Census of Manufacturing Industries (CMI) and data on current output of industrial commodities. Census data was used to derive benchmark estimates. As CMI is not available regularly on annual basis and is also flawed with under coverage, under reporting and non-response, the value added on the basis of QIM is estimated for which data on 96 important manufacturing items covering 74 % weight of the organised industrial sector are collected on regular basis which is used to project the benchmark value added in 1980-81 to derive constant value added in subsequent years.

Estimates at constant factor cost are converted into current cost by applying a specially constructedWPI (large scale manufacturing).

SMALL SCALE MANUFACTURING

To obtain year-to-year value added at constant factor cost of small scale manufacturing industries growth rate of 8.4 % calculated on the basis of SHMI surveys of 1976-

77 and 1983-84, was used. This growth has recently been replaced by 5.31 % as obtained through 1996-97 and 1987-88 surveys. This is converted into current factor cost estimates by applying a specially constructed WPI manufacturing covering the items produced by small industries.

CONSTRUCTION SECTOR

This sector covers all construction, repair, addition, alteration and demolishing activities carried out in the economy by households, private bodies, public institutions and the general government. Value added in this sector has been derived by applying value added coefficients to the sectoral estimates of investment by capital assets. Data on the co-efficient of value added was collected from concerned agencies such as WAPDA, CAA, Railways, PWD, KPT, KDA, Irrigation Departments, Gammon Pakistan Ltd. and other construction companies. To convert these estimates into constant estimates, wage index of construction workers is applied.

ELECTRICITY & GAS DISTRIBUTION

The economic activities covered in this sector are: i) generation, transmission and distribution of electricity. ii) transmission and distribution of natural gas. The data on quantity & value of electricity generation, industrial cost and other charges are obtained from WAPDA, KESC, Pakistan Steel, KANUP and IPPs & Captive Units. Data on gas transmission and distribution are collected from the gas companies. The estimates so derived are at current factor cost. The estimates at constant factor cost are derived by applying unit value indices of electricity and gas generation as deflators.

TRANSPORT, STORAGE AND COMMUNICATION

The economic activities covered are transportation by railways, road (mechanized and non-mechanized), water (coastal, ocean & inland) and air; storage; oil and gas pipelines; transport handling and services establishments and communication services rendered by Pakistan Post Office, Telecom. Cos; Pakistan Broadcasting & Pakistan Television Corporations and STN etc. The estimates of value added are measured through income approach for which requisite data are collected from the source agencies. The estimates of mechanized road transport are based on the FBS surveys conducted in major cities, while the estimates of non-mechanized road transport are based on data collected from Town Committees. Initially the estimates are derived at current factor cost. To convert the current estimates into constant, unit value indices of passenger & tonnage-kilometres for railway, passenger & tonnage- kilometres for air and cargo handled at sea for sea transport are prepared. Similarly, unit value indices of post, telecom. Services for communication, and broadcasting & telecasting hours for radio and television are prepared and applied.

WHOLESALE AND RETAIL TRADE

The activities included in this sector are: i) wholesale and retail trade of domestically purchased and imported goods ii) purchase & sale agents and brokers and iii) auctioneering. The estimates are computed by applying commodity flow method. The flows of domestic products and imported goods provide information on marketed portion of various commodities domestically produced and imported. The trade mark-ups separately for agricultural commodities, manufactured items and imported goods have been derived from various studies. As most of the flows are derived from other sector, respective deflators are used. For imports, unit value of imports is used to bring it at 1980-81 prices.

EXPLANATION

SUGARCANE

Introduction

Sugarcane is an important industrial and cash crop in Pakistan and in many countries of the world. It is grown in tropical and sub-tropical regions of the world in a range of climates from hot dry environment near sea level to cool and moist environment at higher elevations. Besides sugar production, sugarcane produces numerous valuable byproducts like, alcohol used by pharmaceutical industry, ethanol used as a fuel, bagasse used for paper, and chip board manufacturing and press mud used as a rich source of organic matter and nutrients for crop production.

Pakistan occupies an important position in cane producing countries of the world. it ranks at the fifth position in cane acreage and production and almost 15th position in sugar production. A comparison of cane yield and sugar recovery in some cane growing countries is given in Table 1.

Table 1. Yield of sugarcane and sugar recovery in main sugarcane growing countries of the world.

Source: FAO Production Yearbook, 1998; Sugar and Sweetener, USDA, June 1997.

Sugarcane growing areas in Pakistan fall between 24В° N latitude in Sindh to 34В° N latitude in N.W.F.P. These areas can be broadly divided in to i) sub-tropical, irrigated with moderate temperature frost free zone between 26В° N latitude to 30В° N latitude,

ii) irrigated arid sub-tropical zone between 240 N latitude to 260 N latitude, iii) and temperate zone of northern Punjab and N.W.F.P. between 320 N latitude to 340 N latitude.

Sugarcane production trends:

Sugarcane is grown on an area of more or less one million hectares in Pakistan. The Punjab shares 62 %, Sindh 26 % and N.W.F.P. shares 16 % of the total area. The national average cane yield (~ 47 t ha-1) is far below the existing potential (Table 2). In respect of cane yield Sindh with 53 t ha-1 is the leading province followed by N.W.F.P. (45 t ha-1) and Punjab (40 t ha-1).

Area under sugarcane cultivation increased gradually up to 1993-94 and after that it remained same. Average national cane yield also followed similar trend as of cane acreage. However, sugar recovery remained same, without any improvement, for the last many years. Trends in area under cane, cane yield, sugar production and sugar recovery in the country is given in Table 3.

Table 3. Trends in area under sugarcane, national average cane yield, sugar production and sugar recovery in Pakistan.

Year Area

(million ha-1) Cane yield

(t ha-1) Sugar production

(million tonnes) Sugar recovery

(%)

1986-87 0.762 39.27 1.256 8.67

1987-88 0.841 39.25 1.743 8.59

1988-89 0.8769 42.17 1.817 8.37

1989-90 0.8543 41.55 1.828 8.92

1990-91 0.8838 40.72 1.908 8.44

1991-92 0.8798 43.4 2.296 9.25

1992-93 0.8846 43.02 2.375 8.71

1993-94 0.9628 46.14 2.90 8.49

1994-95 1.009 46.75 2.983 8.72

1995-96 0.9631 47.0 2.449 8.70

1996-97 0.9645 43.54 2.378 8.69

1997-98 1.0562 50.3 3.555 8.64

1998-99 1.155 47.77 3.53 8.21

1999-2000 1.0098 45.80 2.42 8.32

PRODUCTION TECHNOLOGY

1. Land preparation

Sugarcane is a deep-rooted crop and proper land preparation plays an important role in the development of cane root system, and achieving optimal growth of the crop. Land should be prepared by deep ploughing at least after every two years. The soil should be disked.

It is very important that at least 8 to 10 trolley loads of well-rotten farmyard manure (FYM) should be applied a month prior to land preparation. Press mud from the sugar industry is another excellent source of organic matter and nutrients. Green manuring may also serve the purpose.

Soil in the prepared field should be friable and well worked so that full germination takes place and later on plants grow without any inhibiting barriers (compact sub-soil layer).

2.Planting time, method and seed rate

Sugarcane should be planted either in September or in Feb.-March. September planted crop usually produces 25 to 35 % higher yield. Sugarcane should be planted at a row spacing of 90 cm to 1 m. Two budded double setts should be placed end to end in the furrows covered with 2 to 3 cm soil layer. About 3.2 to 4 tonnes seed (80 to 100 maunds) of thin cane varieties and 4 to 5 tonnes seed (100 to 120 maunds) of thick varieties is sufficient to plant one acre.

3. Hot water seed treatment

Seed may be treated with hot water at 520 C for 30 minutes and with fungicide. This will help in better germination and the control of many cane diseases.

4. Varieties

Use healthy seed of improved varieties of sugarcane. This can increase cane yield from 20 to 25 per cent. Sugarcane varieties recommended for various provinces are given in Table 4.

Table 4. Recommended varieties of sugarcane.

Punjab

• Early maturing: BL – 4 , L –116, BF – 162, CP 43-33,CP 72-2086, CP 77-400, SPSG-26, CPF-237

• Mid season: TRITON, COL –54, SPF-213

Late maturing: L –118, COJ-84

Sindh

• Lower Sindh (areas south to Hyderabad)

• Early maturing: BL –4

• Mid season: PR –1000, BF –129

Late maturing: NIA-98

• Upper Sindh (areas north to Hyderabad)

• Early maturing: BL-4, L –113, L –116, TRITON, SPSG-26

Late maturing: NIA-98

N.W.F.P.

• Early maturing: CP 48-103, CP 51-21, CP 65-357, CPM –13, CO –1321, Mardan-93, JN 88-1, ABID-96, SPSG-26

• Mid season: CP 77-400, CP 44-101, IM –61, L 62-96, Mardan-92, Bannu-1

5. Fertilizer application

As mentioned earlier fertilizer use in Pakistan is imbalanced, inadequate and improper. Most of the cane growers in the country use only nitrogenous fertilizers while others use an imbalanced combination of N and P. Use of K is almost neglected in cane crop. It is very important to use proper doses of balanced fertilizers to exploit the maximum yield potential of cane crop. Fertilizer recommendations for sugarcane for various ecological zones are given in Table 5.

Table 5. Fertilizer recommendations for sugarcane in Pakistan.

Province Nutrients (kgs acre-1 ) Fertilizer (bags acre-1 )

N P2O5 K2O Urea DAP MOP/SOP

The Punjab 70-100 50 50-60 2.25-3.50 2.25 1.75-2 / 2-2.5

Sindh 70-110 50 50-70 2.25-4 2.25 2.5-1.75 / 2-3

N.W.F.P 70-90 46 50-60 2.25-3 2 1.75-2 / 2-2.5

All phosphorus and potash and one fourth N should be applied at the time of planting. It is preferable that P and K may be applied in furrows where seed setts are to be placed. Rest of the nitrogenous fertilizer may be applied in three equal splits i.e. during April, May and by mid June to February-March planted crop.

It will be beneficial if N is applied in four equal splits to September planted crop besides one fifth applied at planting. In this case it may be applied during March, April, May and June. September planted crop may be given an additional dose of 20 to 40 kg N (one to two bags of urea) per acre.

6. Weed control

Good land preparation is a key factor in controlling weeds. For proper weed control, Gesapax combi (80 WP) may be applied @ 1.4 kg per acre in medium textured soils and @ 1.8 kg per acre in heavy soils in 100 to 120 litres of water. The weedicide should be used with the advice of the technical experts.

7. Irrigation

It is very important to take care of the irrigation requirements of sugarcane, particularly in summer months. Farmers must plan their acreage to be planted under cane crop according to the available water at their farm. Keep in mind that each field should get at least 16 to 20 irrigations during the crop year adjusting the irrigation schedule according to rainfall in summer.

Irrigation Schedule

March-April 12-14 days

May-June 8-10 days

July-August 10-15 days (if there is no rainfall, irrigation interval should be 8-10 days)

September-October 15-20 days

November-December 25-30 days

8. Integrated Pest Management For Sugarcane

Insect pests play an important role in reducing the sugarcane yield. The most serious insect pests are sugarcane borers, Pyrilla, and whitefly. In some areas mealy bug, black bug and army worm are also causing damage.

In Pakistan exact estimates of yield losses due to insect attack are lacking but it has been reported that top borer, stem borer, gurdaspur borer and Pyrilla cause a reduction in yield from 15-20, 10-20 and 30-35 percent , respectively. In some cases as high as 80-85 percent reduction in crop yield due to insect attack has been reported.

These losses in sugarcane can only be minimized by proper protection of the cane crop from insect pests with scientifically designed IPM Programme throughout the year. Pesticides are applied as and when needed in combination with cultural practices, resistant varieties and introduction and conservation of natural enemies. Pesticides will continue to play an important role in the IPM Programme. The primary difference, however, is that these products will be used selectively and judiciously.

Farmyard manure should always be used when it is fully rotten. This will reduce termite attack. Trash in the field should not be kept for longer time and it may be burnt. Dry shoots attacked by the bores must be pulled out and burnt. Always cut the crop as close to the ground as possible. Use of light traps will help controlling the spread of borers killing their adults. Earthing up during May-June will help in controlling Gurdaspur borer as the adults will not be able to come out of the ridges of the soil. In case of severe attack of any insect, do not keep the crop as ratoon.

Besides using pesticides/insecticides, insects could also be controlled by biological measures. These control measures are safe for environment, and hazard free. Cotesia flavips is an important larval parasitoid of sugarcane bores. Its female lays eggs inside the borer larva and after hatching, its larvae feed inside the borer larva. Adult parasitoid attack more borer larvae in the field. Trichogramma chilonis destroys the eggs of sugarcane borers. Its female lays eggs inside the eggs of borers. Parasitoid larvae feeds in the host eggs, destroying them. Epi-pyropes destroys sugarcane pyrilla. These parasitoids are mass multiplied in the laboratory and then released in the cane fields.

9. Control of diseases

For controlling sugarcane diseases, use healthy seed which is disease-free and preferably plant disease-resistant varieties. Treat the seed with fungicide/s before planting. The diseased plants from the field should be removed and either buried or burnt. Seed may be treated with hot water at 520 C for 30 minutes.

10. Ratoon crop management

If the ratoon crop is properly managed, it could give higher returns than the plant crop because of savings in certain field operations and inputs. It is important to remember that ratoon crop requires 30 to 40 per cent higher fertilizers than the plant crop. The end of January to beginning of March is the best time to keep the crop for ratooning. Cane from the fields to be kept for ratoon should be cut at ground level.

The sugar recovery in ratoon crop is also better and it matures earlier than the plant crop. However, remember that it has to be managed with extra efforts and care. Apply all the phosphorus and potash fertilizer plus one third of N during March. Plough the land in between the furrows to mix the fertilizer well in the soil and then irrigate the crop. Fill the gaps, control the weeds, insect pests and diseases properly. Rest of the nitrogenous fertilizer should be applied in two equal splits during April and May.

11. Harvesting

Stop irrigation 25 to 30 days before the harvest of crop and do not leave the harvested crop for long in the field. In case it has to be kept for a prolonged period, it should be covered with trash. Different varieties planted may be harvested according to their maturity. Harvesting of early maturing varieties may be started during November, mid season varieties during December and the late maturing varieties during January. The crop harvested during February-March gives good ratoon crop.

The sugar industry in Pakistan has continued to expand heavily in spite of negative fundamentals and continuous advice of Pakistan Sugar Mills Association to the contrary for the last six years. New units have been established and the number increased from 52 mills in 1991-92 to 74 in the current season which has commenced last month. Besides, the mills already in operation have enhanced their sugarcane crushing and sugar refining capacities through BMR. The increase in the number of sugar mills, in such an unplanned manner, has been blamed by many on the government and the financial institutions who have provided long-term loans and wasted limited resources.

The year 1995-96 was in sharp contrast with the previous years during which sugar production was close to 3 million tonnes which dropped by a hefty 20% to 2.449 million tonnes from 2.983 million tonnes in 1994-95. That, necessited import of around 500,000 tonnes involving substantial foreign exchange outlay. The domestic consumption is estimated at around 2.7 million tonnes.

The magnitude of problems of the sugar industry can be gauged from the crushing capacity utilization dropping to around 55% during 1995-96. With idle capacity at 45%, rarely could an industry break even, let alone expect a profitable run.

The political angle

Initially the sugar mills in the country were established by the business community but during the last 8 to 10 years establishment of sugar mills has become a prerogative of people indulging in politics directly or indirectly. They were not only able to get the permissions to establish sugar mills but to acquire huge credits from the financial institutions as well. The cost of projects established after the mid-eighties was not only very high but credits were disbursed at 80:20 resulting in very high financial cost.

All these new mills have been established in prime sugarcane growing areas where the operating mills had spent resources to educate farmers in achieving better yields and had arranged soft-term credits for the farmers for the procurement of seed, fertilizer and agricultural implements. With the establishment of mills by people enjoying political clout and power, the growers were forced to sell their produce to these mills. During the last season, industry sources said, one of the politicians’ owing sugar mills was instrumental in closure of a sugar mill as it was paying higher prices to the growers.

Crushing capacity

Expansion of daily crushing capacity and reduction in availability of sugarcane has, over the years been responsible for persistent crisis in the industry which has been deepening with each successive year. There has been a constant reduction in actual sugarcane crushing.

During 1995-95 sugarcane crushing on countrywide basis dropped by 17.7% and sugar production decreased by 17.9% as compared to the preceding year. Sugarcane crushing in the Punjab came down by 19.6%. The sucrose percentage also dropped from 8.49% to 8.12% resulting in cumulative decline in sugar production by 22.3% as compared to last year.

In Sindh, sugarcane crushing fell down from 12.038 million tonnes in the preceding year to 10.341 million tonnes. The production of sugar declined from 1.108 million tonnes in 1994-95 to 1.008 million tonnes in the year under review. However, there was an improvement in recovery which improved from 9.2% to 9.75%.

The mills in NWFP suffered serious setback and production of sugar in the province fell down to 65,682 tonnes only as against the preceding year's production of 104,136 tonnes - a massive reduction by 63%.

Cost of production

The shortfall in sugarcane availability resulting in under-utilization of capacity, coupled with regular enhancement in its support price fixed by the government, have been factors responsible for the increase in cost of production of sugar.

Since the nature of production is seasonal and consumption continues throughout the year, the financial cost incurred on carrying for over six months squeezes profit margins or increases accumulated losses of the mills.

Not only the government has been increasing sugarcane support price, the growers have also started demanding prices higher than those fixed by the government. Knowing the limited availability of sugarcane, the growers either completely stop the supplies or curtail them to a large extent.

Succumbing to pressure from the growers, the mills are forced to pay price for sugarcane much higher than those fixed by the government. The situation further aggravates the mills' position as they are not in a position to recover even the season's variable cost which affects repayment of loan installments and interest charges to the financial institutions.

Factors affecting sugarcane supply

Over the years many factors have been responsible for shortfall in sugarcane supply. They include increased consumption by the mills and failure of the growers to increase sugarcane production. Production could be increased either by increasing the area under sugarcane cultivation or more importantly by improving the yield per acre substantially.

A comparative analysis of sugarcane yield and recovery between India and Pakistan prepared by the Pakistan Sugar Mills Association indicates that Pakistan is far behind India. While in Pakistani Punjab farmers are able to get a yield of only 43 tonnes per acre, in the Indian Punjabthe yield is over 63 tonnes per acre. The average recovery is 9.39% in Indian Punjab as compared to an average recovery of 8.44% attained in the Pakistani Punjab.

Similarly, the average yield and recovery in Indian Gujrat is 89.6 tonnes per acre and 11.34% respectively ascompared to 57.3 tonnes per acre and 9% recovery in Sindh.

In both the provinces, Sindh and Punjab, the sugarcane cultivation directly competes with cotton. If the prices of cotton are better, the farmers switch over to it, or vice versa. When the CLV attacks on cotton were common, a large number of farmers, originally growing cotton, switched over to sugarcane cultivation. But with the improvement in cotton prices and availability of virus resistant varieties, the farmers have gone back to cotton cultivation.

The area as well as production of sugarcane shrank by 5 and 4 percent respectively in 1995-96 as compared to last year.

In the past, the provincial governments used to ban production of 'gur ' during sugarcane crushing season but lately its production has increased manifold. The percentage of sugarcane consumed by the sugar mills in Sindh is still the highest as compared to the other two provinces. 'gur' making has progressed without paying any taxes and has therefore been consuming more sugarcane to the detriment of the sugar industry.

The average utilization of sugarcane on countrywide basis touched the highest - 76.93% in 1993-94 but has gone down during the last two years.

In the Punjab the maximum utilization was 81.87% in the same year but came down to 63.22% during 1995-96. But the consumption of sugarcane by mills is NWFP was reduced to only 17% in 1995-96. Contrary to this, Sindh has the highest sugarcane consumption record. The maximum consumption touched 93.85% in 1992-93 and came down to 75.28% in 1995-96.

Myth behind massive expansion

Over the last few years most of the existing mills have enhanced their crushing capacities 2- to 3-fold. They give two reasons for this: expansion is much cheaper as compared to establishing new mills of equivalent size and they also want to achieve better recovery by curtailing the number of crushing days. The recovery at the beginning and at the tail-end of the season is low. Therefore it was considered to restrict the crushing period to about 150 days to achieve a better rate of recovery and reduce the variable cost of the season.

Incidentally, the hypothesis got some proof last year. Delay in commencement of crushing in Sindh has been instrumental in achieving a higher recovery rate. Mills in Sindh are thinking about beginning the crushing in November rather than in October.

Liquidity crunch

The commercial banks were directed by the State Bank of Pakistan to adjust by August 20, 1996, the balances of credit made available to the sugar industry against sugar stocks. The action was based on information that the mills were hoarding the stocks. Industry sources, however say that they prepare fortnightly reports pertaining to sugar production, its lifting and stocks. Besides, the mills would never like to hoard the stocks and their priority was to empty their godowns as quickly as possible as carrying a huge inventory meant huge financial cost.

Existing problems

Sugar mills in Sindh pay quality premium regularly - while the mills located in the other two province do not pay such premium - and paid Rs. 733 million to the farmers in 1995-96 alone resulting in additional cost of production.

Oblivious of the difficult situation faced by the sugar industry, federal, provincial and local levels, persistently keep hanking for more revenue. Some of the revenue measures imposed in Sindh lately are, imposition of market committee fee, road cess, surcharge on sugarcane cess, varying rates of octroi, export tax and rawangi mahsool.

Although the Sindh High Court declared collection of rawangi mahsool unconstitutional, bad in law and without authority, and the Supreme Court also dismissed the appeal, yet the district councils recover this tax by a novel procedure.

New deterrents

The central excise division of the Central Board of Revenue vide SRO 329(I)96 dated May 30, 1996 curtailed the period of sugar storage, without payment of duty, to six months from the date of production. However, the collectorate has been given discretion to extend the period.

The custom & central excise division of the CBR during June 1996 directed the sugar industry to manage clearance of sugar on the basis of 'first-in-first-out'. According to the Association sources, stacking of sugar bags and clearance strictly on the prescribed lines is not manageable and practical. The instructions seem to have been issued by error of judgment and common sense. It looks as if the person who has issued the directive has never visited a sugar mill and does not understand its operation.

Structure of sugar industry in the country

While sugar production is primarily confined to two provinces, Sindh and Punjab, and a small quantity in the NWFP, the product is consumed in all the four provinces and Azad Jammun and Kashmir. Every year a substantial quantity is smuggled to Iran and Afghanistan and even goes as far as the newly- liberated Central Asian states.

Traditionally, Sindh has always had surplus production and fed Balochistan, lower Punjab and at times supplies were made to the NWFP, upper Punjab and Azad Kashmir. However, over the years Punjab has attained self-sufficiency. Since the price of sugar is more or less uniform throughout the country, higher cost of freight incurred on dispatches to far-flung areas squeezes the profit margins of mills located in Sindh.

Imported sugar also enters Pakistan via Karachi, Sindh and since most of the quantity is sold in the wholesale markets in Karachi, the prices remain subdued in the province.

Although a number of new mills with large capacities have been established in the Punjab the fact remains that cultivation of sugarcane and production of sugar in the province involves higher costs. The yield per acre and recovery are also low. It is mainly because the climatic conditions are not conducive for cultivation of sugarcane in the province. The climate in Punjab is dry and the average temperature is high which reduces the moisture content in the standing crop.

Sugarcane needs high temperature and humid atmosphere. The conditions prevailing in the lower Sindh are most conducive and therefore the yield per acre and average sugar recovery percentage is the highest in the province.

The industry experts and agriculturists are strongly of the view that shift of sugar production from Sindh to Punjab is one of the major reasons for increase in its cost of production in the country.

Main sugar industry in Pakistan.

The sugar mills in Punjab which produced over 60,000 tonnes of sugar in 1995-96 included the names of Brothers, waqas, Shakarganj, Tandlianwal and Shahtaj. Waqas crushed the highest quaintly of sugarcane and also produced the highest quantity of sugar.

In Sindh, Dewan crushed the highest quantity of sugarcane and also produced the largest quantity of sugar exceeding 100,000 tonnes. The other mills which produced over 50,000 tonnes were Bawany, Faran, Habib, Shahmurad and Sindh Aabadgar.

Dewan Sugar Mills started sugarcane crushing on October 18 and ended April 14 during the last season. By crushing 983,489 tonnes sugarcane during the period with an average recovery of 10.15% it produced 100,008 tonnes of sugar. In the half-yearly report the directors' review expressed on the increase of sugarcane prices which touched new heights as most of the mills entered into an open warfare for procurement of sugarcane. Dewan has been declaring modest cash dividend in the past in spite of persistent increase in the procurement prices of sugarcane. The mills located in prime sugarcane growing area of Sindh was established in 1987.

Habib Sugar Mills established in Nawabshah in 1963 has not only tripled its crushing capacity using in-house expertise but is among the few sugar mills which have been declaring handsome dividends in the past. During 143 days of crushing during 1995-96 season it produced over 60,000 tonnes of sugar with an average recovery of 9.2%. It also produces industrial alcohol. The modifications in the distillery has helped to streamline its operating efficiency.

Shahtaj Sugar Mills worked for 157 days during the last season and achieved the highest level of crushing and sugar production since the unit was established. According to directors' report the company could have crushed larger quantity had there been no shortage of sugarcane. The unit is located in Punjab and also suffered from shortage of sugarcane and increase in sugarcane support price.

Mirpurkhas Sugar Mills also suffered from the shortage of sugarcane and the number of days it worked was reduced to 157 as against 178 days during the last season. The company exported 14,600 tonnes of sugar from last year production and earned over half a million dollars.

Noon Sugar Mills produced lesser quantity of sugar mainly due to limited availability of sugarcane and disruption of supplies for two weeks. The company supplied 59,000 bags of 50 kg each to the government for sale through utility stores during the last season.

Import of sugar

Import of sugar is a short-term measure to ensure availability and stabilize its price in the domestic market. However, the recent experiment proved a futile effort. In spite of import of sugar, the government failed in arresting the upward trend of sugar prices.

The industry experts have a valid point that increase in support price and quality premium have failed in increasing yield per acre and recovery percentage but the cost of sugarcane per tonne has been increasing over the years pushing up the cost of production of sugar. Therefore, the farmers should improve yield per acre or the industry would not be able to sustain further losses.

Measures to improve profitability

Since the industry has expanded its capacity to the present level - producing nearly 5.5 million tonnes of sugar per annum - the first suggested step is to ban the establishment of new units and expansion of the existing units till such time as almost all the mills achieve 90% capacity utilization.

Since it is not possible to increase area under sugarcane cultivation the suggested second step is to undertake efforts to develop new varieties offering higher yield and recovery. This will result in higher sugarcane production and better returns to the growers without increasing support prices, improved capacity utilization by the mills, larger sugar production, reduction in cost of production per kilogram of sugar, more revenue for the government, stable prices for the consumers and better dividend to the shareholders of public limited companies.

Since the country is capable of producing double the quantity consumed domestically export of surplus sugar can also help in earning the much needed foreign exchange for the country.

During the 1995-96 season the mills started late with the delay ranging from 30 to 45 days. About 66 sugar mills crushed over 28 million tonnes of sugarcane and produced about 2.45 million tonnes of sugar with an average recovery of 8.7%. In Punjab 37 mills produced 1.375 million tonnes of sugar by crushing nearly 17 million tonnes of sugarcane and achieved average recovery of 8.10%. In Sindh the average recovery, touching 9.75% helped the 24 mills which operated during the season to produce over one million tonnes of sugar by crushing 10.34 million tonnes of sugarcane. In NWFP, the 5 mills which worked during the season produced only 65,682 tonnes of sugar crushing 817,429 tonnes of sugarcane with average recovery of 8.19%.

According to the information available, during the current season out of 31 mills in Sindh only 27 were able to commence operation. The season started in November. The 27 mills in operation produced only 84,446 tonnes of sugar achieving average recovery of 7.6%. Out of the total quantity produced only 28,167 tonnes of sugar was lifted and the remaining 56,279 tonnes were lying at the mills

PROCESS OF HOW SUGARCANE CONVERT INTO SUGAR

Sugar accounts for 60% of Belize's agricultural exports. The principal crop is sugar cane which is used for sugar prodution and as a feed stock for ethanol production.

Cane Fields of Northern Belize

Sugar Cane was introduced into Corozal district in 1848 from the Yucatan. After a thriving period in the 19th century, production declined until the erection of the sugar factory at Libertad in 1935.

18th Century Sugar Mill at Lamanai

After 1951, the area used for sugar began to increase. At that time some 2000 acres were planted in cane.

Cutting Cane by Hand in Northern Belize

Today an estimated 40 000 acres in the northern lowlands is reaped each year

Loading Sugar Cane on Trucks bound for Factory

Sugar production occurs at one factory operated by Belize Sugar Industries, Ltd. The factory is supplied with cane by more than 4000 farmers. These crush the cane to extract the sugar and about eight tons of cane are needed to produce one ton of sugar.

Sugar Factory at Tower Hill, Orange Walk Town

RICE

INTRODUCTION

Rice, an important food and cash crop, is the third largest crop of Pakistan after wheat and cotton. It is planted on an area of over 2 million ha and accounts for 18% of the area under cereals and 10% of the total cropped area. The annual production of milled rice is about five million tonnes and has constituted 17% of the overall output of cereals. Pakistan is famous for growing and exporting long grain aromatic Basmati rice. Rice exports hovering around two million tonnes per annum have accounted for 5% of the foreign exchange from merchandize exports. The country ranks 14th in terms of rice production and 6th in rice export in the world.

In Pakistan, rice is grown under diverse climatic and edaphic conditions. Basmati predominates in traditional rice tracts of Punjab (Zone II). In Swat (Zone I) at high altitude mountain valleys, temperate Japonica rices are grown. In the south of NWFP, Sindh and Balochistan (Zone III and IV) IRRI type long grain heat tolerant tropical rices are grown (Figure 1).

Figure 1: Rice zones of Pakistan

Area, production and yield of rice

Rice productivity in Pakistan is low than many other rice growing countries of the world. Rice production and yield in Pakistan were increasing consistently and highest production (5.2 million tonnes) and yield was obtained during the year 1999. Due to acute shortage of water and prolonged drought conditions, rice production reduced to 3.8 million tones during 2001 (Figure 2).

Figure 2: Area, production and yield of rice in Pakistan

Production constraints

• Low plant population

• Water shortage/drought

• Low organic matter in the soil

• Declining soil fertility

• Soil salinity

• Low quality underground water

• Losses caused by pests (insect pests, diseases, weeds)

• Harvest and post-harvest losses

• Financial constraints

PRODUCTION OPPORTUNITIES

• Bridging the yield gap.

• Development of high yielding, short duration and better quantity rice varieties.

• Development and dissemination of pesticide-saving and environment friendly IMP Technologies.

• Development and commercialization of crop establishment technologies such as direct seeding, furrow and bed planting, parachute planting (broadcasting of rice seedlings) and mechanical transplanting.

• Integrated nutrient management.

• Judicious/optimal use of nutrients through leaf colour chart (LCC).

• Crop residue management.

• Green manuring in rice-wheat cropping system.

• Inclusion of legumes in rice-wheat cropping system.

Water saving technologies.

- Precise land leveling (Laser leveling)

- Partial puddling

- Direct seeding

- Furrow and bed planting

- Mechanization of harvest and post-harvest operations to minimize yield

losses.

- Availability of inputs and credit.

- Improvement in marketing system.

- Use of biotechnological tools.

- Hybrid rice.

OBJECTIVES

• Varietal improvement for better agronomic and quality traits having disease/insect resistance.

• Enhance productivity through better crop stand establishment.

• Economical and sustainable nutrient management.

• Development and adoption of integrated pest management technology for higher crop yield and cleaner environment.

• Improved quality grain production through better harvest and post-harvest operations.

• To accelerate the pace of rice improvement through coordination, training and information dissemination.

SOME ADDITIONAL INFORMATION:

Basmati Rice Market

As the unit price of super basmati rice in world market has increased from $554.69 to $ 570 per 40 Kg, it is feared apprehended that Pakistan may not benefit from the enhanced prices mechanism, due to shortage of stock. Rice exporters association of Pakistan has termed water shortage as the main reason for the 26.47 % decline in rice export. Due to water shortage the Sindh government has banned cultivation of rice on 35,000 acre for current sowing season; this will further shrink rice share in the exports.

Pakistan basically relays on agricultural products such as cotton, rice and sugar cane for export earnings; but since the last three years when Pakistan suffered floods in Punjab and Sindh, the country has to import cotton and rice to satisfy requirements. Pakistan had a big deficit in term of trade, and GDP grew only $20 (million) in three years. Inflation increased up by 59 percent and foreign debts increased from $15,471 to $18,423 (Million). There were total imports and exports of ($5.0+$11.4 millions)=$16,420 millions, or 39% of GDP in 1994

In this backdrop when one looks at the performance of agriculture sector, process of industrialization and composition of exports, it appears that the country has failed in achieving the required GDP growth rate. The country after achieving self-sufficiency in wheat, has once again became a net importer of basic food item. Despite producing the best varieties of rice, the country is gradually losing its share in the global markets.

Though the country produces improved varieties of cotton, the fiber is damaged due to outdated ginning equipment. Nearly half of the yarn produced has to be exported due to insufficient and obsolete weaving and processing facilities. Sugar industry operates around 50 per cent capacity utilization. All these factors have resulted in poor GDP growth rate and dismal performance of the large scale manufacturing sector

Rice Plantation

Rice plant requires immense quantities of rainfall in the initial days of its plantation, followed by a long and uninterrupted season of hot and dry weather. It is harvested by hand with delicate care, aged to perfection and then processed.

Rice Processing

The process begins as rice arrives from the fields. Foremost, whole or paddy rice is dehusked by a rubber roll sheller to produce brown rice. The outer tough protective coating is removed having no effect on the nutritional composition of the grain within the husk.

The resultant brown rice can be further milled to produce white rice. Milling of brown rice involves removal of the outer bran layers of the grain which are darker in colour and are rich in nutrients such as B vitamins.

Rice Processing [Rice Mill]

Before milling, un-husked rice may be parboiled (steamed or boiled after soaking) to soften the husk. Rice is soaked in warm water for 4-5 hours before being steamed under pressure, dried and milled. The process increases the total and head yield of the rice and decreases the loss of nutrients during processing. During this process, some of the water soluble B vitamin within the bran moves into the endosperm, along with the oil. Although cooking and parboiling rice reduces its protein digestibility by 10-15%, there is a corresponding increase in the biological value, leading to an unchanged net protein

Conclusion:

There are many Problems which effect the agriculture base industry very badly, we also have the solutions for the problem but the main thing is to implement the solution of the problem. We can implement the solution step by step, slowly & gradually. One of the main problem in this sector is the budget that is not sufficient enough to run the sector easily, the government is now trying to improve on their own side. We as the people of this nation should utilize the resources which are provided to us in full and should not waste them.

Biblography

http://www.northernbelize.com/econ_sugar.html

http://www.ueiswl.com/sub/urm.htm



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