FROM
CONSTRUCTION to engineering and IT, they came from different backgrounds,
united by a passion for farming, and a dream to do good. Today, these 17 young
men are the heroes of an entire panchayat beyond the outer edge of Kochi.
Guided by Kerala’s agriculture department and scientists, they
toiled for three years to convert nearly 50 acres of stinking garbage land that
had eaten up the fading paddy fields of Choornikkara in Aluva into the lush
green home of a new rice brand. They call it Choornikkara rice.
This transformation, which includes a small park with benches
overlooking the fields, has also helped improve the life of local residents and
even the quality of water in their wells.
Until these men came together to start Adayalam, a self-help group,
residents say urbanisation had been engulfing Choornikkara, with municipal
towns on three sides, leaving only about 200 of the 350 acres of fields
suitable for cultivation. And with farmers shifting to other sources of income
in rapidly growing Kochi, the paddy fields of Choornikkara slowly became a
ground for dumping waste.
“When the Kochi Metro acquired the paddy fields for its yard, they
gave Rs 1.01 lakh for one cent of land. Many land-owners then started leaving
their land barren, expecting further acquisition. They were no longer
interested in cultivation. We approached the land-owners, seeking their consent
to hand over their fields to our group,’’ says Ansar P M, 34, who hails from
Choornikkara, like many others in the group, and is the face of the initiative.
“In 2016-17, we got 15 acres of land on lease from 40 owners for
cultivation, and the sanction and subsidy from the agriculture department. The
major task was waste removal. We had to spend Rs 10 lakh just to get the fields
cleared of waste dumped over the years,’’ he says.
Soon, others began to take note — and extend a helping hand.
Says Dr N K Sasidharan, a scientist who retired from the Kerala
Agricultural University: “They did not have any idea about cultivation. But
they diligently followed our advice on farming. Usually, farmers don’t
completely accept what scientists tell them. These youths were open to
implement whatever we suggested.’’
Apart from Ansar, others in the collective include Muhasin K M
(21), who works as a trainee at Travancore Cochin Chemicals; Fahad K A (29),
who works as a journalist with a website; Rinshad T B (28), who works with an
IT firm; and, others from the panchayat and nearby areas.
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“In the first year itself, the venture fetched a good harvest with
eight tonnes of paddy from 15 acres. It was branded as Choornikkara rice and
sold in local markets at Rs 35 per kg. All 8,000 households in the panchayat
were given two kg of rice at Rs 35. The land owners were given one-fifth of the
proceedings, depending on the size of their paddy-field,” says Ansar.
The first step taken, the collective started working on an
alternative system to dispose waste. “We set up collection bins for plastic
waste in several parts. Since 2016, Adayalam has collected 80 tonnes of plastic
waste, which was shifted to recycling units,” says Ansar, who works for a local
cooperative that provides interest-free loans.
According to John Sherry, the state agriculture officer in
Choornikkara, changes were felt in the first year of cultivation. “Before we
started cultivation, most wells in the project region were not suitable for
drawing drinking water. A scientific analysis showed the presence of e-coli
bacteria. After the waste was removed, and cultivation started, the water
profile changed. Post-harvest, we found zero e-coli bacteria in the water,’’ he
says.
For 2017-18, the collective took another 15 acres for cultivation,
which was increased to 45 acres last year. In 2018-19, the total paddy
cultivated added up to 115 tonnes, of which 74 tonnes were sold to the state
civil supplies corporation and rest converted into rice and sold in the
markets. The group is now planning to expand cultivation to 100 acres in the
next season.
Local residents, meanwhile, are a happy lot.
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“I had left 50 cents of land barren for the last 20 years. We
cannot take up paddy cultivation in such a small area. The water in my well
could not be used for drinking, either. But after this group started
cultivating my land and nearby areas, the quality of water improved. Now, we
draw water from the well for drinking. More people are ready to hand over land
to these youngsters,’’ says K M Ali, a land-owner in Choornikkara.
Says A P Udayakumar, panchayat member: “When waste was being
dumped, the fields and nearby areas had become a haven for criminals. Now,
people spend their evenings here with families.”
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Kochi Is Now Home Of New Rice Brand
Methane Emissions Have Shot Up, Scientists Have A Desperate
Solution
A RICE FIELD IN PO VALLEY, ITALY. METHANE IS RELEASED FROM FLOODED RICE FIELDS,
AMONG OTHER SOURCES.
Methane is the second most important gas disrupting the climate,
and concentrations are rising faster than ever. There are a lot more holes in
our understanding of the sources of methane than for carbon dioxide, which
interferes with efforts to slow the threat. It's got to the point where a team
at Stanford University have proposed turning atmospheric methane into carbon
dioxide, a truly last-gasp effort to prevent climate catastrophe.
Carbon dioxide is the largest source of global heating, simply
because we emit so much of it. However, molecule for molecule, many other
gasses are worse. In 20 years, methane does 84 times as much damage as the
same weight of CO 2 , 28 times as much over a
century.
The National Oceanic and Atmospheric Administration (NOAA) reports
Methane is released from burping cows, flooded rice fields, warming permafrost contribution via fracking
In other cases, however, there is little we can do to stop the
methane from escaping. If we are seeing the first firing of the clathrate gun
Schematic
of a proposal to resolve a big part of the climate problem, but at horrendous
cost. Jackson, et al. 2019 Nature Sustainability. Artist: Stan Coffman
That's why Professor Ed Solomon
In Nature Sustainability statement
The idea is a long way from a prototype, let alone a working
model, but Solomon and co-authors suggest building giant fans that force air
over powdered zeolites. These would capture the methane and turn it to carbon
dioxide on heating in oxygen. Even after allowing for the electricity required
to make it happen, this could be a net win for the climate, theoretically
capable of bringing concentrations down from 1,860 ppb today to pre-industrial
levels of 750 ppb.
To be profitable, it would require a price on carbon pollution
10-20 times higher than those in use today, which certainly suggests we'd be
better off preventing any emissions we can.
NFA to stop selling rice at a loss to relief agencies
May 27, 2019 | 12:06 am
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THE National Food Authority
Council (NFA) has approved the sale of rice to institutional buyers, including
local government units (LGUs), at P37 per kilo, in order to make the NFA’s
operations more self-sustaining, the Department of Agriculture said.
“The NFA also approved a
resolution which sets the price for the rice that we will sell to LGUs and even
private NGOs. We will not sell at P27 (per kilo), we will sell at P37 (per
kilo),” Agriculture Secretary Emmanuel F. Piñol told reporters at a news
conference.
To be affected are institutional
buyers like the Department of Social Welfare and Development (DSWD), LGUs,
Non-Government Organizations, the Philippine National Red Cross (PNRC), and the
National Disaster and Risk Reduction Management Council (NDRRMC).
He said the old selling price of
P27 produces losses for the NFA, though that price will still apply to areas
suffering from shortages.
The NFA has had to pay out
significant incentives to attract sellers of palay, or unmilled rice, ever
since its mandate shifted primarily to procuring rice from domestic farmers in
order to maintain a buffer stock.
The NFA procures palay at P20.70.
Mr. Piñol said that under the new
pricing, he expects the NFA to earn at least P1 per kilo.
“The NFA will now conduct
surgical marketing operations. Ibig sabihin [This means]… we
will not operate in areas where there is a surplus of rice stocks. Ang focus namin [Our
focus] will be Metro Manila and net importing provinces,” he said.
He also said that the council has
identified 40 areas with high poverty incidence for targeted sales, which will
start in September, when the distribution of domestically-procured rice to the
market will start, coinciding with the lean months for rice supply.
The NFA is still running down its
last inventories of foreign rice after its importing function was taken away
from it this year. The Rice Tariffication Law liberalizes rice imports by
private entities, leaving the NFA to maintain a buffer stock from domestic
rice.
As of May 20, the NFA has
procured a total of 4.025 million bags of palay from farmers.
Meanwhile, Mr. Piñol said the
price of rice has stabilized, while the buying price of palay has increased,
addressing the concerns of both consumers and farmers.
Inflation spiked in 2018, while
the threat of competition from cheap foreign grain, which will be imported more
freely, also pressured palay farmgate prices, threatening farmer incomes.
In the first week of May, the
average farmgate price of palay rose 0.3% week-on-week to P18.45 per kg, the
Philippine Statistics Authority said.
The average wholesale price of
well-milled rice decreased 0.4% to P39.55 compared with the previous week. At
retail, the price fell 0.5% to P43.30 per kg.
The average price of
regular-milled rice at wholesale fell 0.5% to P36 during the period. At retail,
the price of regular-milled rice fell 0.5% to P38.97. — Vincent Mariel
P. Galang
This border barrier got built — and it’s
upended lives in Pakistan and Afghanistan
By ZULFIQAR
ALI
MAY 26,
2019 | 9:35 AM
| KHARLACHI, PAKISTAN
A
Pakistani soldier stands guard near the newly fenced border with Afghanistan,
in a photo provided by the Pakistani military. (Handout)
With no physical boundary between
the countries, the families joined forces every year to desilt the canal that
irrigated the lands. They shared not only ethnic and blood bonds, but also the
harvests from the fertile soil.
But a year and a half ago, the
cross-border farming came to a stop. The Pakistani army began erecting a
chain-link fence topped with coils of razor wire.
Syed Gul, a Pakistani farmer who
owns 20 acres that straddle both sides near the Pakistani town of Kharlachi,
cannot access the Afghan side, and Pakistani soldiers have told him not even to
approach the land that lies inside Pakistan because getting too close to the
fence would constitute a security breach.
“The land has been made barren
since the government fenced the border,” said Gul, 55.
The barrier is part of the
Pakistani government’s response to long-standing criticisms
Its border management plan,
launched in 2017, calls for a divider along all 1,600 miles of the frontier,
with backing by closed-circuit television cameras and drone footage, along with
hundreds of checkpoints. The army said in January that about 560 miles of fence
had been completed at a cost of about $460 million.
The region, which consists of
10,400 square miles of tribal land, was once considered a haven
The area has been relatively calm
since the army launched an offensive
Islamabad says the fencing will
disrupt militants plotting terrorist attacks in Afghanistan and Pakistan. But
in an impoverished and undeveloped region, where farming and illicit
cross-border trade were among the only sources of income, the fence has upended
lives.
Gul’s Pashtun ethnic group has seen
both sides of the border as its homeland for centuries. Pashtuns moved freely
across it during the British colonial era, even after the 1893 Durand Line
agreement formally demarcated the boundary.
“We never considered it a border
between two countries,” Gul said. “People did not seek verbal permission from
the officials patrolling the border when they needed to work in their fields on
the Afghanistan side.”
A
Pakistani soldier is seen near a fence erected along the Afghanistan border.
(Handout)
“I got on the bus with my friends
in Peshawar and went to Kabul by bus to watch Indian movies in the cinema,”
recalled Ziaul Haq Sarhadi, a 65-year-old trader in Peshawar.
The fence has cut off thousands of
families who share the same culture, traditions, language, religion and land.
Many people in Pakistan’s tribal region sold their lands inside Afghanistan
when the border management plan was introduced.
“We sold 100 acres of land in
Paktika” — a border province in eastern Afghanistan — “at a throwaway price,”
said Dilawar Wazir, a resident of Pakistan’s South Waziristan tribal district.
Official trade between the two
countries has also fallen, harming Afghanistan’s landlocked and war-battered
economy. Pakistani exports to Afghanistan, which amounted to $2.6 billion in
2010-11, fell to $1.4 billion last year, according to government statistics.
Ibrahim Shinwari, a small
businessman living in the Khyber tribal district, said Pakistan’s border plan
has left 2,500 people jobless in the border town of Torkham, formerly a major
transit terminal for goods between the two countries that was also used by
U.S.-led international forces to bring supplies into Afghanistan.
Six out of nine restaurants in
Torkham have closed, he said, and the daily flow of vehicles crossing in and
out of Afghanistan has slowed from the thousands to the hundreds.
“No more is the place buzzing with
economic activity as it once did,” Shinwari said. “All that hustle and bustle
has died down into economic depression.”
After
controversial election, a tribal rights movement in Pakistan carefully plots
its future
Azmat Hayat, former director of the Area Study
Center at the University of Peshawar, said that before the U.S. invaded
Afghanistan in 2001, the border was ignored.
“The Durand Line is a reality
because of the changing geostrategic situation in the region,” Hayat said.
Traditions are also dying, with
families on either side of the border unable to celebrate festivals together or
visit the houses of sick or deceased relatives on the other side to offer
condolences.
“It has brought an end to family
relations,” said Nadir Manan, a Pakistani who said he couldn’t attend the
recent wedding of his niece in Afghanistan.
Pakistan’s former ambassador to
Afghanistan, Rustam Shah Mohmand, called the fencing “disastrous” and said it
violated more than a century’s worth of agreements between the countries to
allow free movement, particularly of families with historical ties to the land.
“The government cannot stop
cross-border movement of terrorists by erecting the fence,” Mohmand said. “It
just cuts off families and will cause acrimony between the two countries.”
https://www.latimes.com/world/asia/la-fg-pakistan-afghanistan-border-wall-20190527-story.html
Farming
is not highly profitable in Pakistan because of a lack of sufficient subsidies,
analysts say. — Dawn/File
Newspaper reports that the
government is set to withdraw agricultural subsidies ahead of the International
Monetary Fund (IMF) package have shocked stakeholders.
They fear that it may further choke
the sector, which is already under stress for want of subsidies.
“The local farming sector receives
just 20 per cent of subsidies that are available to the agriculture sector
elsewhere in the world, including neighbouring countries like India and China,”
says Jawaid Saleem Qureshi, convener of the Lahore Chamber of Commerce and
Industry’s standing committee on agriculture, seeds and pesticides.
Farming is not highly profitable in
Pakistan because of a lack of sufficient subsidies, analysts say. Their
withdrawal to meet the IMF conditions will weaken the sector’s growth and hurt
financial interests of the rural population.
The higher cost of production will
render the local produce uncompetitive in the international market, he says.
‘The budget should provide a 40pc
subsidy on pesticides to offset the impact of the price hike caused by the
rupee depreciation’
“Some landowners have already left
the business by contracting out their land while exploring employment
opportunities in urban centres. Now the government seems to be scaring away the
contractors (lessees).”
Statistics available with the
provincial government make an interesting comparison between the costs of
production in the two Punjabs — our province and the one across the Indian
border.
Data reveals that the per-hectare
cost of production for the wheat crop here is 48pc higher than that in Indian
Punjab — Rs76,248 versus Rs51,260. Likewise, the difference for the cotton crop
is 45pc — Rs127,526 per hectare here against Rs87,646 in India.
This difference increase further in
the case of rice, sugar cane and maize crops (Rs124,429, Rs222,436 and
Rs119,511 in Pakistan versus Rs67,580, Rs142,000 and Rs53,029 in India,
respectively).
The Indian government pays
subsidies for fertilisers. It offers a subsidy of Rs1,100 per bag of urea,
Rs1,050 per bag for diammonium phosphate (DAP) and Rs765 per bag for muriate of
potash. Islamabad has subsidised fertiliser by reducing the general sales tax
from 17pc to 2pc.
Pakistan Kissan Ittehad President
Khalid Mahmood Khokhar says farmers receive the latest farm technology,
certified seeds and well-funded agriculture research institutions in the rest
of the world. But the government’s priorities in Pakistan are different, he
says.
“We are lagging far behind in the
use of the latest farm tools and machinery. Certified seeds and
adulteration-free pesticides are but a dream.
“Research takes a back seat here as
the institutions supposed to conduct farm research are not being funded.
Rather, their properties are being handed over to other departments for setting
up offices and residential colonies.
“Other countries are doling out
agricultural subsidies while our rulers allow the duty-free import of cotton
from these heavily subsidised producers,” he says.
That’s the reason, he adds, India
has grown its cotton production manyfold. In contrast, our cotton yield is in
decline. Pakistan continues to foot the bill, which runs into billions of
dollars, for the import of edible oil despite being an agrarian country.
Threatening to stage a
demonstration outside parliament if the government increases sales tax on
fertilisers from 2pc to 17pc, Mr Khokhar demands that the government should
instead do away entirely with the levy.
Furthermore, he believes that the
budget should provide a 40pc subsidy on pesticides to offset the impact of the
price hike caused by the rupee depreciation as well as the closure of many
chemical plants in China.
However, there are some analysts
who think that the government is following the right strategy by withdrawing
subsidies.
Malik Sajjad Sulaiman, who manages
a rice seed development business, says the government is struggling to steer
the country into the right direction. “It has to accept harsh conditions put
forward by the IMF,” he says.
He admits that the cost of
production will go up as consumers will suffer because of the withdrawal of
‘artificial’ or subsidised support prices. But he believes that the process
won’t slow down the sector’s growth because people “cannot give up eating and
drinking”.
Published in Dawn, The Business and Finance Weekly, May 27th, 2019
'Quality of Pakistan’s products
getting better'
Published: May 27, 2019
Consul general believes exports to China will jump $3-4b in next
few years. PHOTO: CHINA.NET
BEIJING: The reporter
prepared eight questions for Pakistani Consul General to Chengdu Muhammad Tipu,
who graduated from Oxford University. He engaged in the interview at Chengdu
Tongwei International, Pakistani Consulate General in Chengdu, which has been
the longest interview since he came to China.
Reporter: According to the statistics,
Pakistan’s exports to Sichuan, Yunnan, Guizhou, and Chongqing increased by 132%
last year. These are the consular districts of Pakistani Consulate General in
Chengdu. Could you please tell us what happened?
Consul
General: First
of all, I think this is something extremely good. The quality of Pakistan’s
products is getting better. Pakistan’s learning curve is also getting better
because of the China-Pakistan Economic Corridor (CPEC), and our problem of
energy shortage has been resolved gradually. I think a number of factors and
supports form the present situation.
I must tell
you that the Sichuan provincial government, China Council for the Promotion of
International Trade, Chengdu Chamber of Commercial Services and a lot of major
business houses have been deeply engaged in. All those critical factors brought
Pakistan in the limelight in Chengdu, which boosted the country’s public image.
Chinese businessmen, who are interested in Pakistan, began to learn Pakistani
products and their international competitiveness, through which plenty of
information becomes gradually known.
(Last year,
the growth rate of China-Pakistan trade volume was about 12.8%).
Consul
General: I think
we effectively took full advantage of the media. In addition to interviews from
Chinese and Pakistani media, I also gave interviews to chambers from Pakistan
and Sichuan. They became closely connected to each other, and connect hundreds
of people, if not thousands of people. Then ideas exchanged, a trust built
among people and trading communities.
(So, chambers
take a role?)
Consul
General: Yes,
absolutely. Ultimately, the private sector joined many authoritative business
activities. So, I think the private sector of Pakistan, and some of the major
private companies in this region – Chongqing, Sichuan, Guizhou – really made a
very good impact not only on promoting trade but also on strengthening the
connections between Pakistan and Sichuan.
Reporter: Could you please list the main
categories of products Pakistan exports to the consular districts of Pakistani
Consulate General in Chengdu? Any characteristics?
Consul
General: Rice,
cotton, yarn, chromite, other mining products, and made-ups. We are focusing a
lot on beef exports because they have a lot of quarantine problems. Once the
current problems have been solved, Pakistan’s beef can be exported to China.
And then
there are surgical instruments. About two weeks ago, there was a dental
exhibition in Chengdu, people from Pakistan also came. They sold well, although
this is only the second year of selling surgical instruments from the Pakistani
side. We introduced surgical instruments because it is a huge market and
Pakistan has great expertise. Pakistani surgical instruments are sold all
across Europe as they meet international standards. So, it is a good
opportunity to introduce our products to China. This year’s sales figure of
$25,000 was really considerable. I think it will increase by 10 times in the
next five years.
(Last year, I
saw Pakistani surgical instruments at China International Import Expo. In
addition to the products themselves, they put much more emphasis on import
license. What do you think of that?)
Consul
General: In the
Chinese market, it’s a very sophisticated issue, as many Chinese products are
revolutionary and very good. Pakistani products have to be more competitive if
they intend to tap the Chinese market, and Pakistani companies have to follow
Chinese practices. I think as time goes by, Pakistani companies will know
China’s specific implementation framework as more companies enter China. We
have to go through the process of certification, and then the size of export
will increase many times. Ultimately, Pakistani products will become more
competitive, and they will meet all the certification standards in China.
Reporter: It is reported that last year
Pakistan’s sales at the Kunming Fair ranked first in all exhibitions. Why?
Consul
General: Yes, we
participate in the Kunming Fair every year. At present, the sales are $800,000.
Actually, every year, we invite traders from Pakistan to attend exhibitions.
Maybe we have done better in publicity work.
(So you mean
a lot of people know Kunming Fair because it has been done for many years?)
Consul
General: Yes, we
participate in the Kunming Fair every June. This year is no exception. We have
been preparing since last month. So far, we have obtained the right to take 224
booths. All Pakistan exhibitors will use these booths to promote their
companies and products. Last year, I went to CIIE and made a speech at the
invitation of the Yunnan government. We have indeed done a lot of work in this
regard.
Gwadar Port
to see revolutionary changes
Reporter: The Gwadar airport was newly launched
in March. Whether the Gwadar airport or the newly signed second phase of FTA
last month, do you have any expectations on the role they play in trade
development?
Consul
General: Of
course, the airport is very critical for Pakistan, it’s going to be a very
important element in the global supply chain, particularly for China.
Previously, we sought cooperation; we went to other countries first, such as
the Middle East. But once Gwadar Port becomes robust, it is going to create
huge economic opportunity for Pakistan. So, I think that Gwadar, in that sense,
is going to be revolutionary in a couple of years.
Now, a lot of
facilities around the port are being developed. It will take a bit of time. But
I think that our institutions in Pakistan are very focused on Gwadar Port and
airport. The infrastructure building is the top priority. We are convinced that
these projects have been successful, and we try to create more other
opportunities in Gwadar. So that’s also a testament to Pakistan’s friendship
with China. It will take time; all of these things are not going to happen
tomorrow.
(I talked
with several Chinese businessmen. They told me that Balochistan is not as safe
as Lahore, maybe not even as much as Karachi. So even though it is said that
there are lots of mineral resources and agricultural products, people dare not
come to this place.)
Consul
General: They
will start coming. Economic development has its own logic. So once poverty is
reduced, people will have more incentives. At the time, things will get better.
(The new FTA
grants 313 zero-tariff items for Pakistan to export to China in April)
Consul
General: Pakistan
will have access for rice, textile and leather products to the Chinese market.
In many cases, the tariffs have been significantly reduced in Pakistan. I think
we will see a jump in Pakistani exports next year and the years after.
(So do you
have any predictions about the increase?)
Consul
General: Well, I
haven’t done any data analysis so far. Frankly speaking, I was busy over the
past two months. But I have read some of the things related to FTA. I think we
will have a jump of $3-4 billion in the next few years.
This article
originally appeared on the China Economic Net
Published in The Express Tribune, May 27th ,
2019.
Pak exports could be doubled to $50 bn: Razak
ISLAMABAD: Adviser to Prime Minister on Commerce Abdul
Razak Dawood has said Pakistan’s exports could be doubled from $24 billion plus
to $50 billion over the medium term but first the stumbling block of bringing
change in mentality needs to be addressed.
He said the Ministry of Commerce would oppose any move to abolish
zero-rating of five export-oriented sectors in the coming budget.
The PM’s adviser said that the direction of reducing duty on raw
material and inter mediatory goods would continue while duty on finished goods
would be increased in the upcoming budget. He said that Pakistan has requested
Japan for providing duty-free access on 10 to 20 items under Early Harvest
Programme (EHP) and the same facility would be offered to them on reciprocal
basis.
“I am of the opinion that the zero-rating regime for five export
oriented sectors must continue because there is no logic to collect taxes and
then issue refunds as it will create liquidity crunch for export industry,”
Abdul Razak Dawood said in an exclusive interview with The News here at his
ministerial office on Sunday.
The PM’s adviser dwelt upon various issues related to trade and
stated that the desired target to jack up exports to $25 billion might not be
achieved in the current fiscal year, and argued that the global trend of trade
was on decline by 3 percent, while prices also reduced by 7.2 percent.
“Pakistan’s exports in dollar term remained flat but the country’s exports were
doing reasonably well keeping in view global trends of trade,” he added.
Quantity wise, he said, Pakistan’s exports went up by 7 percent as
production line had gone up despite difficult environment. The trade gap was
narrowing down as exports were showing steadying trajectory while imports got
reduced by $4 billion and overall current account deficit also improved, he
added.
He said that the situation on economic front was not as bad as
being portrayed by some quarters and they were ready as well to correct things.
However, he also conceded that the economic situation must have improved at
much accelerated pace. He said that the exports of garments went up by 29
percent, cement 25 percent, basmati rice 21 percent and footwear 26 percent in
the current fiscal year.
To a query regarding new Free Trade Agreement (FTA) with China, he
said that Chinese side might approve second phase of FTA in August.
“In the second phase of FTA with China, Pakistan has placed
safeguard measures that will enable Islamabad to impose countervailing duty if
found any domestic industry at disadvantaged position,” he said, and added that
the government would slap countervailing duty to protect its industry.
He said that Pakistan’s exports to China stand at $1.7 billion and
imports $15 billion and this gap has reduced in recent months and it would
further come down after this revised FTA with China. He said the quality and
standard of imported items would be ensured and they had already taken steps
such the imported products were brought into the country with expiry date of
just 15 days but now they were making it mandatory that without 50 percent
timeframe the products would not be allowed to come into the country.
On the issue of rampant smuggling, he said the tariff
disincentives could discourage and the government would move towards this
objective in the coming budget. He said that the country was facing problem of
smuggling, under invoicing and mis-declaration and cited example of clothes
smuggling from Dubai with Indian stamps and they have made bill of entry
mandatory to curb this practice.
Regarding Afghan Transit Trade (ATT), he said that both sides
possess their wish of demands, but they see it with holistic approach as good
relationship would result into improved trade.
On trade ties with India, he said that it would depend on how they
want to keep relations with Pakistan. Indonesia has unilaterally provided
duty-free access on 20 tariff lines. He said that Pakistan’s focus would be
towards Japan, Korea and Canada for boosting trade relations. Pakistan has
requested Japan for duty-free access on selected 20 items such as garments,
rice and some others and same incentives on reciprocal basis would be offered
to them, he said and added that he would be visiting to Japan in July this year
to explore possibilities for boosting trade.
He deplored that Pakistan had turned into trade nation during the
last decade that needs to be reversed. He said imports were focused with the
purpose to increase tax revenues and wrong policies were pursued where the
tariff was reduced on finished products that caused loss to industries. He said
that there was anti-export bias that needs to be abolished on immediate basis.
To another query about the IMF programme, he said that exports
remained stagnant not because of IMF, but it was our fault that no one had
focused to boost exports. The IMF, he said, talked about good governance. He
questioned why tough decisions were not taken to pursue reforms’ path that
could only help achieving higher growth trajectory on sustained basis.
He said that objective of boosting exports was not a matter of few
days, but it would take time to come out from difficult phase. He said that if
the government kept on supporting wrong policies it would not help moving
towards industrialisation and creation of jobs. He said industrialists belonging
to Karachi, Faisalabad and Lahore would confirm that industrial production was
improving in Pakistan.
He said that Bangladesh was solely depending on garments but
Pakistan’s export products were diversified. He said that the government
provided subsidy to export-oriented sector on electricity and gas and it would
be continued in coming year.
He said that zero-rating regime for five export oriented
industries were removed three times in the past but again restored and this
policy must continue even under the IMF programme. “There is no revenue loss of
the government because there is no rationale to collect taxes and then refund
it after export proceeds,” he added.
On trade ties with Iran, he said that they offered Tehran to go
ahead with barter trade in order to remove difficulties in the wake of economic
sanctions imposed by the US on Tehran. He aids Iranian counterpart minister is
expected to visit Pakistan in July in which modalities of bilateral trade would
be finalised. He said that there was no proposal to sign FTA with Japan but
efforts were underway to finalise early harvest programme to get duty-free
access to selected 20 items. On Turkey, he said that any trade agreement would
be difficult because both countries did not compliment but plunge into
competition with each other in different areas.
When asked about his differences with former chairman Board of
Investment (BoI) Haroon Sharif, he said that he is professional who preferred
to resign. “This chapter is closed,” he said.
On GSP Plus status with EU, he said that it helped Pakistan
increase its exports to European Union by at least half a billion dollars per
annum. He said that the trade officers who were performing well would be
granted extension but those who were not doing well, new ones would be selected
on merit to boost exports.
Govt urged to
resolve basmati issue
KARACHI: The Union of Small and Medium Enterprises (UNISAME) has
expressed concern over lethargy in the advocacy of the geographical indications
(GI) and the trademark (TM) ownership of basmati and has urged the Small and
Medium Enterprises Development Authority (SMEDA) to impress upon the government
to resolve the matter on top priority, a statement said on Friday.
UNISAME President Zulfikar Thaver urged SMEDA to take up the
matter, as many genuine SME basmati farmers, millers, processors and exporters
are awaiting protection of their rights to label their produce of basmati
grains, as basmati as rice is grown from genuine certified basmati seeds having
all features and characteristics.
In view of the Delhi High Court's decision, setting aside the
restrictions imposed and restraining only basmati grown on the Indo-Gangetic
plain as basmati.
The honourable HC has wisely concluded that the rice grown with
genuine basmati seeds, besides the Indo-Gangetic plain is also basmati provided
it is cultivated with bona fide basmati seeds and complies with the
germination, features and characteristics of basmati specifications.
Thaver appreciated the step taken by the Ministry of Industries
and Production for requesting the Intellectual Property Organization (IPO) and
the Ministry of Commerce (MoC) to consider the proposals of UNISAME for basmati
GI and TM ownership and to expedite matters for clarifications of the
intellectual property rights and framing of the long pending acts drafted by
IPO with consensus of stakeholders.
Thaver applauded the judgement in the best interest of justice and
also highlighted that Pakistan grows the world’s best super basmati, which has
inherent features and characteristics of basmati and even the Indian basmati
does not match Pakistan's super basmati in terms of aroma, taste, look and
length.
It is, therefore, very important that this fact is determined to
avoid other varieties, which exported and sold as basmati by Indian shippers
are exposed and declared as encroachers.
The Indian shippers are also mixing basmati in other varieties to
benefit from aroma of basmati and deceiving the consumers, he said.
The SME farmers have appreciated the judgement of the Delhi court,
which has negated the design of the Indian government to create hurdles in GI
and TM issues and, on the other side, allowed its exporters to quietly ship
non-aromatic rice as basmati.
Trade deficit of Pakistan - a vicious cycle
Published: May 27, 2019
PHOTO: REUTERS
KARACHI: As the government undertakes yet another
programme with the International Monetary Fund (IMF), the challenge to steer
the economy away from the vicious cycle of high fiscal and current account
deficits, coupled with critically low foreign currency reserves, is
insurmountable.
The recent
attack by currency speculators on the foreign exchange market, coupled with the
hike of 150 basis points in the discount rate by the State Bank of Pakistan,
has created uncertainty as experts warn of the impact of adjustments on
economic conditions. The budget for FY20 is likely to involve tougher measures
as several incentives offered in the previous budget will be retracted to
reduce the fiscal deficit. Pakistan will soon enter its 22nd IMF programme and
receive $6 billion from the IMF.
As inflows
from the IMF are likely to be complemented by inflows from the World Bank and
the Asian Development Bank (ADB), it will help alleviate some concerns on the
external front. However, the high current account deficit, driven by the trade
deficit, will remain a challenge until and unless adjustments to the export
composition result in sustainable export growth rates.
The Pakistan
Bureau of Statistics (PBS) reports a fall of 9.9% in the trade deficit in April
2019 over the value reported in April 2018. This is primarily driven by a 6.4%
decrease in imports. On the other hand, exports have also decreased by 1.5%.
The trade
deficit between July 2018 and April 2019 was 12.8% lower than the trade deficit
during the same period in FY18. Again, the main driver was the decrease in
imports as they declined by 7.9%. Exports also declined by a marginal 0.1%. In
essence, imports and exports have both met the same fate this fiscal year.
This decline
in exports is disconcerting. The depreciation of the rupee has failed to
support export growth in Pakistan. The trade deficit can reach a sustainable
level in the long run only if considerable efforts are made to boost exports in
dollar terms.
A closer look
at the industry-level breakdown of imports into Pakistan shows a decline in
imports in the period between July 2018 and April 2019 across all products,
except for the petroleum group, agricultural and other chemicals.
Within the
petroleum group, imports of LNG and crude oil have increased by 46.1% and 14.3%
respectively while imports of refined petroleum products have decreased by
14.4%. Similarly, imports of fertilisers have increased by more than 20% and
imports of machinery and transport groups have decreased by 12% and 34.9%
respectively.
The decrease in
imports of power generating machinery, by more than 52%, has had an important
contribution to the reduction in the trade deficit. The imports of completely
built units (CBU) have decreased by 42.8% while imports of completely knocked
down (CKD) units have also decreased, marginally by 1%.
However,
imports of CKD motor cars have increased by 3.8%. Interestingly, imports of
parts and accessories have also decreased by 9.9%. This trend indicates a fall
in demand for machinery and transport vehicles in Pakistan. The depreciation of
the rupee, rising inflation and higher tariffs on imported goods are likely to
restructure imports away from capital goods and towards mineral fuels,
especially as demand for investments falls. However, imports into Pakistan will
increase once the economic growth recovers.
Therefore,
the eventual improvement in economic conditions will again pile the pressure on
the trade deficit. The situation regarding export growth remains dire. Major
industry groups such as food and textile experienced negative growth, 4.1%, and
0.02% respectively, in the period between July 2018 and April 2019 relative to
the same period in FY18.
Within the
food group, exports of rice increased marginally by 1.4%, driven by the rise of
12.1% in exports of basmati rice. Exports of sugar decreased by more than 65%.
Within the textile group, exports of raw cotton and cotton yarn decreased by
67.2% and 15.8% respectively.
However,
exports of finished products such as knitwear, bedwear, and readymade garments
increased by 8.76%, 2.4% and 3.2% respectively. The quantity of exports of
these manufactured textile products has increased more than the dollar value,
suggesting that Pakistani exporters sell at a lower per unit dollar price or
lower price margins in dollar terms, reducing the benefits in terms of
aggregate dollar revenue.
This
sensitivity to the price competition is likely due to the lack of innovation
and quality of exports. Within other manufactured products, exports of footwear
and chemical and pharmaceutical products have increased in the first 10 months
of FY19 compared to the same period of FY18.
However, the
gain in terms of dollar revenue is less than that by the traditional textile
manufacturing industries. According to data extracted from the ITC’s
trademap.org, exports to the EU and the US have shown an upward trend between
2014 and 2018. Exports to the EU were 29% of total exports from Pakistan in
2014 and 34% in 2018. Exports to the US increased from 14% to 16% in the same
time period.
Export of
clothing articles to the US and the EU increased by more than $870 million,
with men’s or boy’s ensembles of cotton showing a gain of more than $1.16
billion, a 500% increase. The trade concessions offered by the EU in the form
of GSP Plus have benefitted certain textile exports from Pakistan.
The
government must focus on strategies to boost exports. ITC reports an untapped
export potential of $12.2 billion. Unfortunately, the depreciation of the rupee
has not resulted in a desirable outcome yet.
The
government must lower the cost of doing business to make it attractive for
exporters to not only produce more efficiently but also attain crucial inputs
and capital goods at cheaper rates, improving the quality of exports.
Pakistan
ranks poorly in terms of costs and time involved in trading across borders.
Enhancing infrastructure and facilities within Pakistan and at the borders is
necessary. Higher exports will help reduce the pressure on the external front
in the long run.
The writer is
the Assistant Professor of Economics and Research Fellow at CBER, IBA
Pyongyang rejects Seoul’s offer to provide rice,
demands cash instead
Posted
May. 27, 2019 08:08,
Updated
May. 27, 2019 08:08
NFA
to sell rice at P27 to P37 per kilo
MANILA,
Philippines — The National Food Authority (NFA) will soon sell its rice at P37
per kilo to select agencies and local government units but maintains that the
P27-per-kilo variety will still be available for poor families.
Agriculture
Secretary Emmanuel Piñol said the interagency NFA Council has approved a
resolution, which sets the price for rice at P37 per kilo to some government
agencies and local government units.
“We
will no longer sell at P27 per kilo, we will sell at P37. This will be sold to
government agencies, LGUs that have special programs and even to private
non-government organizations. At P37, we will be able to break even… and earn a
bit,” he added.
He
assured the public that NFA would retain its selling price of P27 per kilo to
domestic consumers, especially in the focus distribution areas it has set.
NFA’s move for focus distribution aims to ensure that only poor households will
benefit from cheap rice prices.
NFA
has a standing memorandum of agreement with other agencies such as the Office
of Civil Defense, Philippine Red Cross, Department of Social Welfare and
Development, Provincial Disaster and Risk Reduction Council and other relief
agencies.
“This
(distribution) will begin as soon as we start releasing the locally procured
rice stocks in the market, around September which will coincide with the lean
months,” Piñol said.
The
NFA continues to buy palay from farmers at P20.70 per kilo, much higher than
the buying price of private traders, which already dropped to as low as P14 a
kilo. It has said that it needs at least P32 billion to fulfill its buffer
stocking mandate amid a new rice regime and ensure that its debts will not
further balloon.
Since
it has been clipped of its importing powers, NFA has focused on palay-buying
breaching the four million bags mark prompting it to use its corporate funds
and also borrow from banks. It will also continue to refresh its stocks, which
means that excess supply would have to be released to the market.
Based
on the 2015 Family Income and Expenditure Survey conducted by the Philippine
Statistics Authority, NFA rice accounted for only 7.2 percent of total rice
consumption in the country.Of this, around 43 percent was consumed by non-poor
households.
Farmgate price
of rice still down
MAY 28, 2019
As the Philippines awaits the
entry of cheaper imported rice under the Rice Liberalization Law, farmgate
price of palay (unhusked rice) further dropped in the second week of May, the
Philippines Statistic Authority (PSA) said.
In its latest price monitoring
report, PSA said the average farmgate price of palay fell by 0.5 percent to
P18.35 per kilo from week-ago’s P18.45 per kilo. Year-on-year, it likewise fell
by 12.6 percent from P21 per kilo.
PSA said prices of well-milled
and regular milled rice also dropped at wholesale and retail trades.
The average wholesale price of
well-milled rice dipped to P39.51 per kilo month-on-month. Yoy, it fell 3.9
percent from P41.12 per kilo.
At retail trade, the average
price of well-milled rice was P43.16 per kilo, down 0.3 percent from a week ago
and 1.7 percent a year earlier.
On the other hand, the average
wholesale price of regular-milled rice was down by 0.5 percent to P35.82 per
kilo week-on-week. Yoy, it was down 5.22 percent from P37.77 per kilo.
Its equivalent price at retail
level was P38.74 per kilo, down 0.6 percent a week ago and 3.6 percent a year
earlier.
Meanwhile, the farmgate price of
yellow corngrain went down by 1.5 percent to P14.01 per kilo from P14.22 per
kilo a week earlier. However, it rose by 0.7 percent yoy.
For white corngrain, farmgate
price was P16.19 per kilo, up 0.2 percent from the previous week, but down 5.7
percent from last year’s P17.17 per kilo.
The wholesale price of yellow
corngrain was P20.29 per kilo, up 0.2 percent from a week ago and 0.8 percent
higher from last year. Its retail price was P24.86 per kilo, up 4.4 percent
from last year’s P23.83 per kilo.
For white corn grain, the average
wholesale price was P22.68 per kilo, up 12.4 percent from last year’s P20.17
per kilo. Its average retail price was P29.12 per kilo, down 2.7 percent from
last year’s P29.92 per kilo.
Philippine rice
tariffication law to benefits Vietnam’s exporters
27/05/2019 20:07 GMT+7
In the first four months this year, the Philippines has
leapfrogged China to become Vietnam’s largest rice importer.
Instead of limiting how much rice will be imported, the
Philippines now will impose tariff on rice at 35% for ASEAN members.
The move is expected to have a positive effect on Vietnamese
rice exporters, according to Viet Dragon Securities Company (VDSC).
The import tax rate applied for Vietnamese rice is relatively
low, fixed at 35% regardless of volume while production costs in the
Philippines are much higher than in Vietnam and Thailand, VDSC said in its
latest report.
The Philippines has not been able to produce enough rice to feed
its own people and has been importing rice for the past 20 years. Last year,
before the new regulations, more than half of Philippine rice imports came from
Vietnam.
On April 5, Philippine policymakers approved the Implementing
Rules and Regulations (IRR) of Republic Act 11203 which lifts the quantitative
import restrictions on rice. This act, which came into effect on March 5, was
signed by Philippine President Rodrigo Duterte on February 14.
Following changes in regulation, rice imports are now subject to
tax rate of 35% for products originating from ASEAN countries, including
Vietnam.
Additionally, a tax rate of 40% would be applied for rice
imports from non-ASEAN WTO member countries with the minimum access volume
(MAV) of 350,000 tons, and 180% above the MAV of 350,000 tons.
This regulation is expected to
raise rice import from nearby ASEAN member countries and lower prices for the
consumer, suggested the report. According to the Philippines’ former Budget
Secretary Benjamin Diokno, by tariffication, instead of quantity restrictions,
the rice price will decline by about 4 to 7 Philippine peso per kilogram.
The Philippines is a major export market for Vietnamese rice.
While China is importing less Vietnamese rice, exports to the Philippines have
been increasing since 2016. In 2018, the Philippines became the second biggest
importer of Vietnamese rice, after China, accounting for 15% of the total
export value. It has imported about 1.01 million tons from Vietnam, worth more
than US$457 million, an increase of 83% year-on-year in volume and 105% in
value.
In addition, after March 5, traders do not need a Philippines
National Food Authority (NFA) permit, license or registration to trade and
import rice. They are only required to get the sanitary and phytosanitary
import clearance (SPSIC) from the PHL Bureau of Plant Industry. This new
regulation is expected to simplify and speed up the import process, stated
VDSC.
Regulation changes as mentioned above may boost rice imports
into the Philippines, especially those from Vietnam.
In the first four months of 2019, China is no longer the
largest buyer of Vietnamese rice. The Philippines had advanced to the top post,
having imported 814,484 tons of rice from Vietnam, worth more than US$320
million, up 343% in volume and 290% in value, accounting for 36% of total
Vietnam rice export value. Hanoitimes
45,000 rice farmers to benefit from anchor borrowers loan in
Katsina
By NAN
25 May 2019 |
11:20 am
45,000
registered rice farmers across 34 local government areas of Katsina would
benefit from Federal Government’s anchor borrower agricultural programme under
the current farming season in Katsina State
Alhaji
Shuaibu Wakili, the State Chairman of the Rice Farrmers Association (RIFAN)
made this known in an interview with the News Agency of Nigeria (NAN) in Daura
on Saturday.
He said
out of the total number, 15,800 farmers had been formally captured as
distribution of the agricultural inputs had commenced last Friday and others to
follow soon.
He said
the farmers were provided with inputs that included fertilizer, water pumping
machines, herbicides, sprayers, improved variety of seedlings and other
relevant items to boost their productivity.
He added
that the number of cultivable land hecter registered against an individual
farmer or group would determine the quantity of the inputs to be received
“We
provide 6 bags of fertilizer per hecter, 30kg of improved seedlings, 1 water
pumping machine and seven liters of herbicides, ” he said.
According
to him, the association has so far received 700 million naira cash and 3,227
bags of paddy rice as loan repayment for the 2018 dry season farming.
He also
revealed that they were intensifying efforts to recover the loans so tbat
others could benefit.
He
stressed that his office through lawyers had recently started issuing demand
notice to defaulting farmers to hasten up or risk formal prosecution in the
law.
Wakili
lauded the efforts of the Federal Government and the Central Bank of Nigeria
(CBN) for introducing the programme.
He said
within its three years of existence, it had boosted food security, generated
millions of employment and turned thousands of farmers into millionaires.
He
attributed the success recorded by the programme to the timely supply of
agricultural inputs to farmers by the apex bank.
The News
Agency of Nigeria (NAN) had earlier reported that the rice farmers association
in Daura LGA had registered 1,480 rice farmers for the current season farming.
https://guardian.ng/news/45000-rice-farmers-to-benefit-from-anchor-borrowers-loan-in-katsina/
45,000 rice farmers to benefit from anchor borrowers loan in
Katsina ON MAY 25, 201912:37 PMIN AGRIC, NEWSBY IDOWU BANKOLE3 COMMENTS 45,000 registered rice farmers across 34 local government areas of
Katsina would benefit from Federal Government’s anchor borrower agricultural
programme under the current farming season in Katsina State Alhaji Shuaibu
Wakili, the State Chairman of the Rice Farmers Association (RIFAN) made this
known in an interview with journalists in Daura on Saturday. He said out of the
total number, 15,800 farmers had been
formally captured as distribution of the agricultural inputs had commenced last
Friday and others to follow soon. He said the farmers were provided with inputs
that included fertilizer, water pumping machines, herbicides, sprayers, improved
variety of seedlings and other relevant items to boost their productivity. He
added that the number of cultivable land hecter registered against an
individual farmer or group would determine the quantity of the inputs to be
received “We provide 6 bags of fertilizer per hectare, 30kg of improved
seedlings, 1 water pumping machine and seven litres of herbicides, ” he said.
According to him, the association has so
far received 700 million naira cash and 3,227 bags of paddy rice as loan
repayment for
the 2018 dry season farming.
He also revealed that they were intensifying efforts to recover the loans so
that others could benefit. Flood: Rice farmers in Edo North, Central lament
destruction of farmland By Gabriel Enogholase He stressed that his office through
lawyers had recently started issuing demand notices to defaulting farmers to
hasten up or risk formal prosecution in the law. Wakili lauded the efforts of
the Federal Government and the Central Bank of Nigeria (CBN) for introducing the programme. He said within
its three years of existence, it had boosted food security, generated millions
of employment and turned thousands of farmers into millionaires. He attributed
the success recorded by the programme to the timely supply of agricultural
inputs to farmers by the apex bank. Journalists gathered that the rice farmers
association in Daura LGA had registered 1,480 rice farmers for the current
season farming.
WS
Country Brief: Nigeria 27-May-2019
REPORT
Published on 27 May 2019
FOOD SECURITY SNAPSHOT
1.
Normal
progress of 2019 cropping season due to favourable weather conditions
2.
Above-average
cereal harvest gathered in 2018
3.
Slightly
below-average import requirements forecast
4.
Higher
food prices in northeast due to persisting conflict
5.
Moderate
economic growth and increasing food price inflation
6.
Assistance
needs will remain high in 2019
Normal
progress of 2019 cropping season due to favourable weather conditions
Following the timely onset of seasonal rains, planting of maize
and yams in the south started in February/March. The harvest of green maize in
the south is expected to start in June, while harvesting operations for yams
will start in July. Rice, to be harvested from October, was planted in March.
Planting operations for millet and sorghum, to be harvested from September, are
still ongoing. The cumulative rainfall amounts since February were average to
above average in most areas and the most advanced growth stage is tillering,
observed for maize crop. Weeding activities are normally progressing for crops
already in place.
Pastures and availability of water for livestock have improved
in May compared to previous months in the main grazing areas of the country.
The animal health situation is overall stable. It is noteworthy, however, that
there was an outbreak of Highly Pathogenic Avian Influenza (HPAI) in Plateau
and Bauchi states between January and April 2019, which has been contained with
the support of FAO-Nigeria. The conflict in the northeast and armed banditry in
Zamfara and Katsina states continue to limit the access to normal grazing land
for pastoralists.
Above-average
cereal harvest gathered in 2018
The 2018 agricultural season was characterized by favourable
rainfall and support of inputs from the Government and NGOs across the country.
Field reports also indicate an increase in farming activities in the northeast
due to improved security conditions and some engagement of some investors back
to farming in relation to the economic recession experienced between 2015 and
2016. Despite the incidence of pests (including Fall Armyworm), the country’s
aggregate cereal output in 2018 is estimated at about 28 million tonnes, about
12 percent above the five-year average. The 2018 harvest included 11 million
tonnes of maize (7 percent above average), 8 million tonnes of rice (24 percent
above average) and 6 million tonnes of sorghum (equivalent to the average).
Slightly
below-average import requirements forecast
Domestic demand for imported rice remains strong despite trade
restrictions introduced in 2015 by the Government. The country is the largest
rice producer and importer in Africa, importing on average about 2.6 million
tonnes per year. Wheat imports account for 5.4 million tonnes per year. Owing
the above-average 2018 production, cereal import requirements for the 2018/19
(November/October) marketing year are set at 7.1 million tonnes, slightly below
the average.
High levels of
food prices in northeast
Market supplies and household food stocks are seasonally
declining in most areas. Institutional purchases by the food industry and
poultry farmers in major local markets as well as cross border purchases,
mainly from Niger, are underway. Prices of coarse grains generally strengthened
in April in line with seasonal trends. However, prices were well below the high
levels of one and two years earlier reflecting the good level of market
availabilities from the 2018 harvests. In the northeast of the country, food
prices were relatively higher due to the negative impact of the Boko Haram conflict
on market and livelihood activities.
Moderate
economic growth projected, food price inflation increasing
According to the National Bureau of Statistics, the economy is
forecast to grow by about 2 percent (year-on-year) in the first quarter of
2019, similar to the first quarter of 2018. Growth is supported by agriculture,
transportation, storage, trade, construction of industrial investments and
services, including communications. The year-on-year food inflation rate
slightly increased to 13.70 percent in April 2019, higher than the 13.45
percent recorded in March of the same year as result of the increase in
domestic food prices.
The Central Bank of Nigeria continues to provide direct
intervention into the foreign exchange market in order to stabilize the Naira,
the national currency. However, the Economist Intelligence Unit (EIU) forecasts
the exchange rate to drop from NGN 306.5 per USD 1 in 2018 to NGN 319.5 per USD
1 in 2019 due to lower oil prices, looser monetary policy and high inflation.
Despite some
improvements in security, over 2 million people remain food insecure
As of April 2019, the International Organization for Migration
(IOM) identified over 1.9 million people that have been displaced, of which 92
percent by the insurgency in northeastern states of Adamawa, Borno and Yobe.
Heightened tensions in recent months have triggered further displacements, with
new arrivals mainly in northern and eastcentral Borno State, Geidam and Gujba
(Yobe) as well as Madagali (Adamawa). Furthermore, the farmer/pastoralist
conflict in the northcentral states continues to disrupt markets and main
livelihood activities, causing population displacement in Kaduna, Nasarawa and
Niger states. Most of the displaced households are heavily dependent on
humanitarian assistance. Another dimension to the threat to food security is
the armed banditry and cattle rustling ravaging northwestern states of Zamfara,
Katsina, Kaduna and Sokoto. Rural farmers in these states are unable to
cultivate their land essentially because of the threat of kidnapping and
banditry attacks. Households have been displaced due to destruction of their
houses and food stocks.
According to the March 2019 ‘’Cadre Harmonisé’’ analysis, about
2.05 million people were estimated to be in need of food assistance from March
to May 2019, with a significant decrease from the 3.71 million food insecure
people in March-May 2018. The reduced caseload is largely due to the improved
security conditions compared to last year. This number is expected to increase
to 4.95 million people during the June to August 2019, if no mitigation actions
are taken.
