Agriculture to shrivel, if
Pakistan remains tech-shy’
LAHORE: Pakistan will have to take advantage of
the modern technology to make the most of its agriculture sector, which equally
requires its regulatory frameworks to catch up with these upgrades so they can
be exploited efficiently.
It was stated by Dr Imran Ahmad Khan, CEO &
Managing Director, Bayer Pakistan (Pvt) Limited, in an exclusive talk with The
News.
Here are some of his thought-provoking insights
on Pakistan’s healthcare and food security risks.
Q: Why is Bayer called a life science company?
A: At Bayer, we address some of the world's
most pressing challenges. Our population is constantly growing, while climate
change and resource scarcity pose a serious risk to food security. People need
quality medicines and nutritious food in sufficient quantities to live a better
life. Through our portfolio of science-based solutions for healthcare and
agriculture, we work towards addressing these universal challenges and making
our vision – Health for All, Hunger for None – a reality.
Q: What food and health security challenges are
facing Pakistan currently?
A: There are tremendous challenges in both
areas. Pakistan’s population, world’s sixth-largest, is projected to expand by
nearly 100 million people by 2050 (UN World Population Prospects 2019). We need
to feed more people than ever before in our history; even before the onset of
the COVID-19 pandemic, an estimated 21 million Pakistanis were facing acute
food insecurity. But simultaneously, we are facing extreme climate
change-related challenges, scarcity of resources including water, and
productivity losses. These factors affect the productivity of major crops such
as wheat, rice and maize.
The young population of Pakistan is growing
exponentially, and needs more in terms of both adequate nutrition and
healthcare. Food insecurity puts people at great risk of malnutrition, which
can lead to lifelong health conditions.
Q: What does Bayer offer to counter the
prevailing challenges in healthcare and food security?
A: Bayer’s portfolio is uniquely structured to
offer solutions for both healthcare and nutrition. In healthcare, we provide
high-quality pharmaceuticals for many therapeutic categories – in Pakistan
these include cardiology/thrombosis, women’s healthcare, pulmonology, oncology,
anti-infectives, ophthalmology, and radiology. We also have a Consumer Health
portfolio that includes nutritional, dermatology, and digestive health
products. For the agriculture sector, our Crop Science product portfolio focuses
on high-yielding seeds for maize as well as a portfolio of vegetable seeds. We
also offer innovative crop protection solutions, including herbicides,
fungicides, pesticides, and micronutrient products.
Q: What is the role of research-based drugs in
healthcare security?
A: The field of medicine is constantly
advancing; as diseases continue to evolve, so must available treatments.
Research-based drugs offer patients the newest and most effective therapies to
combat existing conditions. They are vital to raising the bar on prevailing
standards of treatment, and therefore very important to healthcare security
overall.
Q: How can Pakistan leverage agritech to combat
food security challenges?
A: Agritech can be leveraged to combat many of
the growing challenges to food security and improve the sustainability of the
agriculture industry. Farmers can better utilize limited amounts of arable land
and grow more with less by planting high-yielding crops made possible through
advanced breeding techniques. A good example of this is short stature corn, a
variety of corn that is resilient to challenging weather conditions, and also
allows for greater planting density. If enabled by policy and regulatory
frameworks, farmers can also utilise digital insights and precision agriculture
for improved agronomy and efficient water usage. For example, harvest losses
can be decreased if farmers have access to information about rapidly changing
climate conditions, and are empowered to make timely decisions to protect their
crops.
Q: How does Pakistan’s regulatory structure
affect introduction of research based, innovative products, and technologies?
A: For innovation to flourish, the prevailing
regulatory framework needs to provide adequate protection and support,
particularly in the area of intellectual property (IP) protection. This is
equally applicable to the pharmaceutical and agriculture sectors.
Technological advancement is underpinned by
years of scientific research and investment. Therefore, companies seek out
markets that provide adequate protection against theft of their proprietary
knowledge. However, in Pakistan, despite the existence of requisite laws
against intellectual property infringement, enforcement remains weak.
In agriculture, this is evident in the fact
that despite being the fourth-largest market for cottonseed, none of the
leading cottonseed technology (Bt cotton) providers are willing to enter the
market. In the pharmaceutical sector, intellectual property violations have
resulted in the widespread production, and distribution of counterfeit and
sub-standard drugs.
Q: In terms of regulatory environment, what
other improvements can contribute to create a competitive and growing
pharmaceutical industry?
A: Contract manufacturing could enable the
transfer of technology, expand the local industry, and boost exports. However
we need more supportive policies for this to happen. Currently, to fulfill the
requirements for contract manufacturing, companies must have a functional
manufacturing facility of their own (unlike other countries, such as India).
This requirement means that Pakistan will lag in pharmaceutical exports, with
local plants remaining underutilised. There are concerns that contract
manufacturing would discourage MNCs (multinational companies) from operating in
Pakistan. However, the reality is that, due to the strict quality standards of
MNCs, contract manufacturing would promote technology transfer by bringing the
local industry at par with global technology, processes and quality controls.
There is an urgent need to revisit the laws and regulations pertaining to
contract manufacturing in order to unlock the potential of the pharmaceutical
industry.
Q: What has the impact of COVID on healthcare
and agriculture been?
A: As with all industries, the impact of COVID
on both has been significant. The government-mandated lockdown at the peak of
the pandemic along with travel restrictions, both local and global, put
pressure on supply chains. In the agriculture supply chain, the movement of key
inputs such as seed, fertilisers and crop protection products was impacted.
Similarly, restrictions on movement of people also created a shortage of labour
at critical planting and harvest stages across the country. However, the
federal and provincial governments were quick to issue necessary exemptions for
the relief of farmers. But, with the pandemic drawing out longer, demand
compression experienced by certain food commodities is now beginning to drive
down agriculture commodity prices; essentially eroding farmer profitability.
In the pharmaceutical industry, similar
disruption was faced by many in the procurement of key raw materials such as
API (Active Product Ingredient) which is not manufactured in the country and
must be imported, often from India or China. Local movement restrictions also
affected supply to distributors and retailers.
Q: What agri technologies does Bayer plan to
introduce into Pakistan and where does the country stand in terms of adoption
of modern technology?
A: Globally, Bayer has multiple technology platforms
that provide tailored solutions to farmers, including advanced breeding
technology, biotechnology, crop protection chemistries and digital/precision
farming tools. In Pakistan, Bayer is already marketing elite maize hybrid seed
genetics, and a crop protection portfolio enabling improved pest and weed
control. Regarding our pipeline, we have completed all field trial and
regulatory requirements for our biotech maize hybrids, which allow protection
against insect attack and improved weed control. These hybrids have been shown
to exhibit 10–45 percent higher yields than conventional varieties, and could
save farmers up to 70 percent on crop protection costs. Bayer has also
partnered with XAG, a leading drone manufacturer, in efforts towards introducing
agriculture drone technology in the country. Drones allow more precise,
efficient and safe application of pesticides, enable direct seeding in select
crops and provide valuable data insights to aid key farming decisions.
Unfortunately, Pakistan has been unable to fully capitalise on the modern
technologies that are fueling growth in agriculture productivity globally.
Drone technology is a prime example; while the world is fast embracing this
innovative tool, our local regulatory frameworks have not evolved sufficiently
to utilise it. In order to realise our true potential in agriculture, we need
to embrace and adopt a wide array of modern technologies available to farmers
around the world.
https://www.thenews.com.pk/print/699286-agriculture-to-shrivel-if-pakistan-remains-tech-shy
Egypt keen to enhance tie with Pakistan Diplomat
ISLAMABAD: Egyptian Ambassador to Pakistan Tarek
Mohamed Hussein Dahroug on Tuesday said that Egypt is keen to further enhance
bilateral trade relations with Pakistan.
The Egyptian
ambassador while addressing the business community during his visit to
Islamabad Chamber of Commerce & Industry (ICCI) said that both countries
have good potential to export many high quality products to each other at
competitive prices.
He said that by
enhancing trade cooperation with Egypt, Pakistan can get easy access to many
African markets including Libya, Morocco, Sudan and Algeria.
He said that
Pakistan and Egypt should focus on exporting competitively priced products to
each other.
The Egytian
ambassador said that a Memorandum of Understanding (MoU) had been signed in the
past for the establishment of Pakistan-Egypt Business Council, however, no
progress has been made so far. He urged both countries to make target oriented
efforts to achieve a mutually beneficial outcome for the project.
Speaking at the
occasion, ICCI President Muhammad Ahmed Waheed said that Pakistan and Egypt
enjoy historically cordial and friendly relations which should be translated
into better trade and economic relations.
He said that
bilateral trade between Pakistan and Egypt in 2017 stood at $154 million, which
was less given the market size of both countries urging that both sides should
focus on developing strong linkages between their private sectors in order to
explore all untapped areas of trade promotion.
He added that
Pakistan and Egypt should consider signing a Free Trade Agreement (FTA) which
would remove hurdles and boost trade between the two countries.
Ahmed Waheed
said that Pakistan can export many products to Egypt including rice, marble,
engineering goods, agro-processed products, surgical instruments,
pharmaceuticals and sports goods.
He said that
both countries can potentially cooperate in areas including agricultural
products, engineering goods, construction and building material, tourism, shipping,
fertilisers, chemicals, textiles products, leather goods, medical and surgical
items and pharmaceuticals.
He further said
that many Pakistani products are entering the Egyptian market with third
country labels and urged that the Pakistani government should cooperate with
its private sector to promote local Pakistani brands in Egypt in order to
realise better results.
https://profit.pakistantoday.com.pk/2020/08/11/egypt-keen-to-enhance-tie-with-pakistan-diplomat/
Crop targets: scratching
beneath surface
12 Aug 2020
Since mid-2000s, Pakistan's major crops segment
has underperformed other segments of the economy, including other agricultural
heavyweights such as livestock. Consisting of wheat, cotton, rice, maize and
sugarcane, major crops have particularly struggled during the last 5 years,
when segment growth has often drifted in the red, averaging close to negative
two percent.
Does that mean all crops are suffering? Not
quite. Since the last GDP rebasing exercise in FY06, four out of five major
crops have witnessed growth in output (volume). Of these, maize, sugarcane, and
rice have posted decent CAGR of 6.22, 2.93, and 2.09 percent, although wheat
output has increased at a muted rate of 1.14 percent. Why then is the cropped
segment said to be underperforming?
Two reasons. First is the sectoral GDP
composition. Back in 2006, wheat and cotton together constituted the lion’s
share within major crops, at over 70 percent of major crops index. Because the
two crops have witnessed stunted (or in cotton’s case, negative) growth during
the intervening years, this has often painted a picture of a segment in
recession. Meanwhile, even as output of crops such as maize, cane, and rice has
increased significantly during the period, these have failed to translate into
commensurate GDP growth due to constant factor costs set at base year prices of
FY06.
But an even greater reason why cropping segment
is seen to be underperforming are the missed output targets set at the
beginning of every season by Federal Committee on Agriculture. Here, the
disappointment is multifold. Although the FCA sets higher output targets for
each major crop every year - cotton being a conspicuous exception – the
increase in target output is invariably driven by an increase in targeted area,
instead of an increase in yield, latter being the universal indicator of
farming productivity.
Between FY16 – FY20, targeted increase in yield
averaged at a paltry 0.84 percent per annum for the five major crops. But here
is a much more distressing bit: even those negligible increases in targeted
yields are routinely missed. The underwhelming performance of productivity is
exacerbated by the fact that target yields for cotton and wheat – with their
current two-thirds weights in major crop index - have been missed in almost all
years. Also consider that during the past five years, cotton missed its
targeted yield by over 15 percent on average!
Meanwhile, output of crops such as maize, rice,
and sugarcane has been slowly catching up. Apart from few exceptional seasons
of water shortfall or depressed demand, the three crops have outperformed
targeted output substantially. But is that enough cause for celebration?
It is important to remember the context.
Underwhelming increases in yield means that the above par performance is a
symptom of mediocre yield targets, especially when acreage achieved is also
above target level. For example, during the five-year period under review, rice
yield has increased at an annual average growth rate of just 0.16 percent. Similarly,
while yields of both sugarcane and maize have made some strides, the rate of
increase for each crop is nevertheless stuck below 3.5 percent per annum.
To most readers, Pakistan’s crop productivity
challenge should come as no surprise. But it is important to scratch beneath
the surface, which reveals that not all crops are created equal. Over the past
decade, Pakistan’s two most important crops – wheat and cotton – have
underperformed even mediocre target outputs, as yield levels have been on a decline.
And while the rest may have arguably witnessed decent increase in output, it
has mostly been driven by an increase in acreage rather than productivity.
With gated communities and housing schemes
knocking at the doors of Bahawalpur and Rahim Yar Khan – the fertile crescent
of Indus – the policy planners at MNFS&R must ask themselves: how long
before Pakistan’s farmers run out of land to cultivate?
India’s exports
of non-basmati rice in first two months of FY21 jumps 52.5%
By
Sutanuka Ghosal, ET BureauLast
Updated: Aug 11, 2020, 05:33 PM IST
Synopsis
Bangladesh
too, will open up opportunities for Indian non-basmati rice exports. “Either they
will directly buy from private players or they will buy through
government-to-government scheme. Whichever way it happens, it will provide a
fillip to the country’s rice exports,” Rao added.
ReutersBangladesh has imposed an import duty of 55% on
rice.
KOLKATA:
India’s exports of non-basmati rice in the first two months of FY21
has jumped 52.5% to 11.13 lakh tonnes from 7.3 lakh tonnes in the same period
of FY20.
Africa has emerged as the major buyer of non-basmati rice and exporters are
hoping volumes will increase further when Bangladesh
starts importing this variety.
“Africa is depending on India for rice supply this year as Thai rice prices
have skyrocketed. Non-basmati rice will do well this year,” said BV Krishna
Rao, president, All India Rice Exporters Association.
Rao is optimistic Indian non-basmati rice exports will touch FY18 levels when
the country exported 8.64 million tonnes. “Exports of non-basmati rice
subsequently went down in the next two years and in FY20 we had achieved
exports of 5.04 million tonnes. This drop in non-basmati rice was because the
government increased the minimum support price of paddy and farmers were not
interested in exports. Also, the government had procured huge quantities of
rice. That is why the exports went down,” added Rao.
Bangladesh too, will open up opportunities for Indian non-basmati rice exports.
“Either they will directly buy from private players or they will buy through
government-to-government scheme. Whichever way it happens, it will provide a
fillip to the country’s rice exports,” Rao added.
Traders said rice millers in Bangladesh were demanding high prices for rice
that they would provide to the government warehouses.
“Rice consumption has increased in Bangladesh as people are staying indoors due
to the coronavirus outbreak. Eating out has stopped. This
is increasing the demand for rice in the country” said Suraj Agarwal, CEO,
Tirupati Agri Trade.
Agarwal said a decision from the Bangladesh government on import of rice from
India is expected by the end of this week or early next week.
Bangladesh has imposed an import duty of 55% on rice, but traders said the
government is likely to bring down import duty on rice to 18%.
Bangladesh food ministry is considering importing of rice amid sluggish
progress in the procurement of rice and paddy due to a lack of interest among
millers and farmers to supply the cereal to public warehouses.
International media reports said that until now, Bangladesh government's food office
could meet 20% of its paddy procurement target of 8 lakh tonnes and 45% of its
rice procurement target of 11.5 lakh tonnes. And if it progresses this way,
then the target of paddy procurement is unlikely to be achieved within the
deadline of 31 August.
India defers certificate
requirement for rice export to European countries to Jan 1, 2021
SECTIONS
India defers
certificate requirement for rice export to European countries to Jan 1, 2021
, ET BureauLast Updated: Aug 11, 2020, 08:27 PM IST
EIC is
the official export certification body of India which ensures quality and
safety of products exported from India.
AFP
New Delhi:
India on Tuesday deferred the requirement of a certificate of inspection by
export inspection agencies for exporting rice to European countries to January
1, 2021.
The Directorate General of Foreign
Trade (DGFT) amended the export policy and said that the
export of Rice (Basmati and Non-Basmati) to EU
member states and other European Countries namely Iceland, Liechtenstein,
Norway and Switzerland only will require Certificate of Inspection from Export
Inspection Council (EIC) or Export Inspection Agency (EIA).
EIC is the official export certification body of India which ensures quality
and safety of products exported from India.
“Export to remaining European countries (except Iceland, Liechtenstein, Norway
and Switzerland) will require Certificate of Inspection by Export Inspection
Council / Export Inspection Agency for export from January 1, 2021,” DGFT said
in the notification.
It had, in January, said that a certificate of inspection by export inspection
agencies will be mandatory for exports
to remaining European countries with effect from July 1, 2020.
India’s rice
export to Europe were $278.68 million in FY20, 13.7% lower than the $323.09
million in FY19.
Cebu Customs
intercepts smuggled bags of rice from Taiwan
Published August 12, 2020, 12:00 PM
Close to 500 bags of rice worth more than half a million pesos from
Taiwan were recently intercepted at the Port of Cebu.
The Bureau of Customs said instead of the declared items, the shipment
was found to contain a total of 495 bags of Myanmar White Rice on Monday,
August 10.
It has an estimated market value of P525,857, the Port of Cebu said.
The bags of rice were intercepted following an intelligence report on
July 23 that a shipment loaded with imported rice will arrive at the Port of
Cebu from Kaohsiung, Taiwan.
Investigation showed that the shipment’s inward foreign manifest
declared it to contain personal effects. It was also not covered by any
Sanitary and Phytosanitary Clearance from the Bureau of Plant Industry.
According to the bureau, it was consigned to a certain Theresa Lawas, of
Barangay Pansoy, Municipality of Sogod in Cebu. However, verification with
Barangay Pansoy confirmed that it had no resident named Theresa Lawas.
With this, Acting District Collector Mendoza reminded importers to
properly declare their goods, and to properly identify themselves in shipping
documents and encouraged the public to report to the bureau any information on
illegal shipments that are attempted to be brought into the country.
“Report what you know, even anonymously, so we can verify, investigate
and seize smuggled goods. This way, you are helping the government in our
anti-smuggling campaign and bolster economic recovery during this pandemic,”
Mendoza urged.
A week after receiving the confidential report, a pre-lodgement control
order was issued against the shipment.
A 100-percent physical examination was then conducted by a Customs
examiner in the presence of representatives from the Enforcement and Security
Service, X-ray Inspection Project, Customs Intelligence and Investigation
Service, Philippine Drug Enforcement Agency, Philippine Coast Guard and Chamber
of Customs Brokers, Inc.-Cebu Chapter.
A warrant of seizure and detention was already issied against the
shipment for violation of Section 1113(f) and (l) par. 5of the Customs
Modernization and Tariff Act.
https://mb.com.ph/2020/08/12/cebu-customs-intercepts-smuggled-bags-of-rice-from-taiwan/
ADB approves $400-M loan for agri reforms
August 12, 2020, 4:21 PM
The Asian Development Bank
(ADB) approved a loan to the Philippines aimed at raising productivity and
competitiveness of the farm sector and significantly reducing poverty in rural
areas.
In a statement, the
Manila-based lender said yesterday that it has approved a $400 million
policy-based loan under the Competitive and Inclusive Agriculture Development
Program (Subprogram 1) to support reforms in the agriculture industry.
ADB said the loan aims to help the government expand economic
opportunities in the farm sector by implementing trade policy and regulatory
reforms, enhancing public services and finance to the sector, and expanding
social protection to rural families.
Ahmed M. Saeed, ADB
vice-president said the Philippines made tremendous strides in reducing the
national poverty rate, but rural poverty remains high due to low productivity
and limited crop diversification.
“This loan will support the government’s comprehensive suite of policy and
regulatory reforms, resolving institutional weaknesses in land and water
management,” the ADB official said.
Saeed also said the loan
should expand agricultural financing to boost productivity, and extend the
social safety net to unserved and underserved rural families.
The agriculture industry
employs a quarter of the country’s labor force. But the sector lags behind
counterparts in other Southeast Asian countries in productivity growth and
competitiveness.
The government has
identified agriculture as a priority area for reform under its coronavirus
disease pandemic economic recovery program, as it seeks to ensure food security
and reduce poverty in the country.
Among the government
reforms under the Competitive and Inclusive Agriculture Development Program,
Subprogram 1, is the passage of the 2019 Rice Tariffication Act and the various
measures it provides.
The new law removed quantitative restrictions on rice imports and replaced them
with a pure tariff system.
Using collected duties on imported rice, the government set up the Rice
Competitiveness Enhancement Fund to strengthen the rice industry in line with
the Philippine Rice Industry Roadmap.
The government is also initiating additional reforms in land and water
resources, including irrigation investments.
Other reforms supported by
the loan include additional assistance to farmers making the transition towards
higher value crops and those affected by the COVID-19 pandemic.
These include unconditional cash grants and the Expanded Survival and Recovery
Assistance Program for Rice Farmers to provide zero-interest loans to more than
160,000 small farmers.
The program also expands the government’s pre-school feeding programs to
families to reduce malnutrition and stunting.
The new loan will be
complemented by upcoming investments to enhance flood risk management in major
river basins, improve irrigation efficiency, and promote agro-enterprise
development.
https://mb.com.ph/2020/08/12/adb-approves-400-m-loan-for-agri-reforms/
Why
Consumer Price Index rose by 11.5 per cent
Published :
August 11, 2020
The Consumer Price Index in Rwanda increased by
11.5 per cent between July 2019 and July 2020, according to latest figures
from the National Institute of Statistics of Rwanda (NISR) on August 10, 2020.
This, according to NISR, means that for an item
which was costing Rwf500 in July 2019, the price rose to Rwf557.5 in July 2020.
The statistics are contained in the Consumer
Price Index (CPI) JULY 2020 released by NISR.
CPI is a measure of the average change in
prices, over time, of goods and services purchased by households, such as food
and transportation.
According to the figures, Urban CPI increased
by 9.2 percent in July 2020 compared to the same month of 2019, while Rural CPI
increased by 13.2 percent on annual basis and increased by 1.6 percent on
monthly basis.
The annual average inflation rate between July
2020 and July 2019 was 7 percent.
In urban arears, prices for food and
non-alcoholic beverages increased by 11.9 percent; while alcoholic beverages,
tobacco and narcotics increased by 25.1 percent in July 2020 compared to July
2019.
Housing, water, electricity, gas and other
fuels’ increased by 4.3 percent and transport increased by 22.6 percent.
On an annual basis, the local goods index
increased by 10.1 percent, the imported goods index grew by 6.3 percent, while
the fresh products index increased by 19.6 percent. Fresh products are food
products which have seasonal fluctuations. The energy index increased by 5
percent.
Prices of some food items have gone up significantly. This
is the case for beans which went up from Rwf450 a kilogramme in 2019 to Rwf650
a kilogramme in parts of the country such as Burera District in Northern
Province even during bean harvest season (in July 2020).
At Kimironko Market in Gasabo District,
the price of mangoes more than doubled from Rwf1,000 to Rwf2,500 a
kilogramme, according to fruit dealers.
Still at the same market, mandarin (citrus
fruit), a kilogramme saw its cost jump from Rwf1,500 to Rwf2,500, a more than
half rise.
Factors that drove up such price include the
shortage of supply compounded with disrupted trade with Burundi which
constrained import of such fruits into Rwanda, according to information from
the Rwanda Agriculture Board (RAB).
Dr Canisius Bihira, a socio-economist
told The New
Times that inflation and insufficient domestic food production
are to blame for the rising prices that push up the cost of living.
“Agricultures is still lacking in technologies,
which affects farm productivity and the production of food, hence leaving a gap
to be filled by imports,” he said citing sugar and rice imports.
“The country should do its best to increase
agricultural production among others, so that prices go down. It should also
protect its currency in order to protect its purchasing power from decline,” he
said indicating that the Rwandan franc has depreciated almost by half against
the dollar in less than a decade.
Some causes of CPI increase
NISR explains that there was a low production
for commodities such as bean in the first agriculture season (Season A) of 2020
due to heavy rain, and flooding of some marshlands for rice plantations.
This situation, it said, caused the shortage of
such commodity on the market as shown by the increase of 17 percent in prices
of food and non-alcoholic beverages.
In the transport sector, NISR indicated that in
the framework of stopping the spread of Covid-19, the number of passengers in
buses was reduced.
The statistics institute said that for the
sustainability of this important service, the bus transport fare was increased
and resulted in the overall rise of 22.6 percent in transport tariffs.
On the implications of such CPI increase, NISR
says that in the short term, this is the normal behaviour of the price trend
when there are shocks like those that are highlighted above, adding that when
shock disappears prices tend to become normal.
However, the institute says that if an upward
trend in prices continues in the long term, it means the purchasing power of
household keeps reducing.
