Pakistan on verge of agricultural catastrophe: UN

While the destruction caused by the flood in terms of loss of human life and property has been devastating, the country is now also faced with the threat of an acute shortage of food that could well plague the country for the next two years.

According to the Food and Agriculture Organisation (FAO) of the United Nations, massive damage to agricultural infrastructure has been caused by the floods, and seed for the next year’s crop has also been washed away.

Almost eighty per cent of the families living in the flood-affected areas depend on agriculture as a means of livelihood; and after the floods washed away even emergency food stocks, this segment faces an economic and food crisis of massive proportions.

Furthermore, the FAO believes that if September’s wheat planting window is missed due to water-logging, the impact could last for up to two years. Areas growing rice and maize will be able to harvest their first crop not before autumn of next year.

Additionally, large plantations of fruits and vegetables have also reportedly been destroyed by the flood. Without food assistance for that duration, a nation-wide food shortage threatens the country, with rising food inflation and catastrophic repercussions on food and dairy security. Not to mention the fact that the farming community could lose up to two years of income.

In addition, approximately 200,000 animals have reportedly perished during the flood, while the remaining livestock is in dire need of veterinary support. The flood-hit areas are now also facing a shortage of feed and fodder critical for the surviving livestock. There is a danger that tens of thousands of animals will die as a result of starvation and disease if emergency measures are not taken.

Over $5.7 million have been requested through the Pakistan Initial Floods Emergency Response Plan to kick-start the agricultural response and to provide livestock with feed, veterinary services, de-worming tablets and mineral blocks.

The FAO has already mobilised $1.6 million to address immediate needs in anticipation of the upcoming sowing season, which will see distribution of seeds and fertilisers among 25,000 households.

Published in The Express Tribune, August 17th, 2010.

71% rice crop destroyed in Khyber-Pakhtunkhwa

For a province battered by one of the most devastating natural calamities in recent memory, the ordeal is not over yet.


The Food and Agriculture Organisation of the United Nations has released a damage assessment report of the agriculture sector in Khyber-Pakhtunkhwa.


The report reveals that up to 71 per cent of the rice crop has been lost to the floods. Out of the total of 76,564 acres of land used for rice cultivation, 54,665 acres were simply washed away. Furthermore, the flood wreaked havoc on maize plantations as well, with 45 per cent of the total crop lost in the province and 226,902 acres of farmland damaged.


In all 3.2 million hectares of agricultural land has been damaged or destroyed. In a province where 80 per cent of the population depends on agriculture as their only means of livelihood, economic hardships are getting worse by the day. Fifty-nine per cent of the vegetable produce has been lost and 19,144 acres of farmland used for vegetable cultivation affected.


Also 26 per cent of the sugarcane crop and 57,098 acres of plantation land, 14 per cent of fruit orchards and 11,419 acres of orchard land, and 4 per cent of the tobacco crop and 967 acres of land were also destroyed.
Right now, the most critical matter at hand is how to plant wheat and vegetables in the coming Rabi season. If the crops are not planted by September/October, the country will face massive shortages of wheat and seasonal vegetables next year, and plantation will not be possible for another twelve months.


However the situation is further complicated, as the cultivation cannot begin until seed is made available and flood debris cleared from the fields. Seed from last years crop was washed away by the flood, as were farm implements. Wheat accounts for almost 60 per cent of the national cereal production, and if the coming season is missed, there will be widespread economic repercussions at the micro and macro levels.The Express Tribune

Devastation an eye-opener for opponents of Kalabagh Dam'

Punjab Water Council (PWC) has said the destruction caused by the unprecedented floods should serve as an eye opener for the opponents of Kala Bagh Dam. PWC Co-ordinator Hamid Malhi in a statement on Friday said that according to figures released by the federal government around 4.25 million acres of crops have been inundated and 20 million people affected by the floods.

Total losses would be manifold as compared to the total cost of construction of Kala Bagh Dam, which is US $6-7 billion. The recent statement by the Wapda chief has unearthed once again, the forces behind the opposition to this great economic benefit. No wonder if the very institution which is supposed to advocate the feasibility of the dam is engaged in subverting it, how will the goal ever be achieved?

He said it is a fact that the maximum river water inflows of 13,13,000 cusecs on 31st July 2010 were reduced by 2,20,000 cusecs by storing these inflows in Tarbela and Mangla dams. The devastation would have been much more if the outflow was not reduced by 17 percent by these two dams. The 2,53,000 cusecs flow of river Kabul and 1,28,000 cusecs flows of river Chenab on the same day could not be controlled, as there are no dams on these rivers. The river Chenab has no big dam site in Pakistan but Kala Bagh Dam could reduce the impact of Kabul river flows by storing 6 MAF of water and also producing 3,600 MW of electricity, Malhi added.

PWC strongly condemns the statement of the Wapda chief and demands that he should be immediately replaced. PWC asks both, the president and the prime minister as to how many more lives and economic loss the country has to suffer before the construction of Kala Bagh Dam starts, he concluded.[Business Recorder]

Can we use Mobiles and FM for the dissemination of Flood Relief info

We need your help, if you have not already visited then please visit 

www.RadioContactPakistan.com 

and it will directly start streaming the recent version of "GupShup with T(ahir) & T(ariq)". This program Bro Tahir Butt has exclusively recorded for the education of Flood effected peoples.

Now, the problem is that how this can reach to the respective audience. The effectees don't have computers, no internet. Bro Tahir and Dr Usmani did mention that we, who could listen, should do the voluntary work by making its CDs and transferring it there.

Unfortunately, FM or village radios are not around as in our neighboring country otherwise it could have reached to everybody thru that network.

People do have mobiles, but they are with limited functionality and have various packages, and more importantly their education level is another constraint, we cannot ask them that it is uploaded on such and such WAP site and download it from there, people may not have access to GPRS connectivity or MMS functionality. so, how can we make use of mobile technology.

Any help or contact in this regard will be help to the national cause. Please be exact and give the complete info, or telephonic contact so that right person could be contacted.

I am sure it is possible thru different modes, but am unable to figure out the right one.

Regards

Afzal

Thar coal ignored by federal government

Thar coal reserves have been lying in a state of neglect due to the federal government’s indecision, according to the Sindh government.

A lack of infrastructure and absence of proper incentives by the federal government are chiefly to blame.

The Sindh government has claimed that it has asked Islamabad to approve a comprehensive tax incentive package and become a partner in providing the required $1.8 billion of infrastructure for the mining of the Thar coal reserves according to sources in the water and power ministry, according to sources.

However, despite a number of meetings, the federal government has not reached any decision in this regard said the sources, adding that Finance Minister Hafeez Shaikh was reluctant to give a matching grant each year.

Sources also said that the Sindh government has also immediately sought Rs10 billion from the federal government. The amount was to be allocated equally towards the Makhi-Farsh water supply project for Thar and a transmission line scheme.

Regarding investment incentives, the Sindh government has sought a thirty-year corporate income tax and a minimum turnover tax exemption. The exemption is sought from the date of the first sale of lignite to power plants. All imports by mining projects should be allowed zero per cent customs duty to provide the same advantages as those provided to independent power producers, according to the Sindh government’s proposal. The proposal also seeks a waiver of withholding tax on dividends to shareholders and an exemption of WHT on the procurement of goods and services during project construction and operations. The incentive package remains to be approved by the Economic Coordination Committee of the cabinet.

The sources added that “unless Thar Coal projects are incentivized, it will not be possible to attract the capital required to achieve financial close”. Financial close is the time period required for the completion of all documentation and conditions necessary to initiate a project.

The provincial government also asked the federal government to match the contribution for infrastructure development, for support for project financing from multilateral donors and for the World Bank to rekindle its interest in the coal sector. Previously, the WB withdrew its assistance in exploring the Thar coal reserves.

“The development of infrastructure is critical for the development of Thar Coal Block II”, the Sindh government official added. The infrastructure development package consists of a water supply and an effluent disposal system for Thar mining and power generation projects costing $500 million, transmission lines worth a billion dollars, roads for heavy transportation costing $50 million and a railway network costing $200 million.

The Sindh government is developing Block II of Thar Coal reserves by initiating a joint venture with Engro Power Gen Limited. It has also established Sindh Engro Coal Mining Company and has 40 per cent stakes in it.  According to an official of the Sindh government, potential benefits of the Block II project could be enormous. “It would attract $ 20 billion of investment during next ten years and save $79 billion of reserves by replacing expensive oil with coal for power generation,” he claimed.

Thar Desert contains the world seventh largest coal reserves. The reserves have been estimated at 175 billion tons, equivalent to 50 billion ton of oil, which is more than Iran and Saudi Arabia combined oil reserves and enough to generate 100,000MW electricity for over 200 years. Pakistan’s current use of coal, despite having one of the largest reserves of lignite in the world, is extremely negligible. It produces 0.1 per cent of the total energy from coal as opposed to India’s 53 per cent and China 78 per cent. Instead, Pakistan produces 35 per cent electricity by using imported oil.

The need to mine the trillions of dollars worth coal reserves is compounded with the increasing demand and cost of energy. According to the government estimates, the energy shortage would increase drastically in the coming years from its existing peak level of 6577 megawatts to 18320 megawatts in 2015.

[Published in The Express Tribune]

Flood-hit farmers: Govt asked to offer cheap loans

ISLAMABAD: The National Assembly Standing Committee on Food and Agriculture has suggested to the government to disburse the $900 million World Bank loan to the flood-hit farmers at one per cent interest rate and declare the entire cropping zone as ‘calamity area’.
 

The committee which met here on Thursday also demanded the government to draw a relief policy for the flood-affected areas and recommended that long-term loans granted by all commercial banks and Zarai Taraqqiati Bank Ltd (ZTBL) should be waived.

It also asked the government to pay Rs56 billion to the ZTBL which were waived in the past. The committee asked the ZTBL to dispose of the claims of farmers affected by the flood on priority basis.

The meeting chaired by Javed Iqbal Warraich asked the ministry of food and agriculture to issue notification for declaration of calamity area in view of cropping zone, disease zone and crop susceptibility. The ministry should also devise the crop insurance policy.

The committee asked the ZTBL to issue loans on war-footing to rehabilitate agricultural land damaged by floods. At the same time, the ministry of food and agriculture should develop a comprehensive working plan for detailed survey of flood-hit areas, including a water policy for irrigation purposes.

With regard to establishing model villages, the Standing Committee suggested to re-name the scheme. It decided to visit such a village in Sargodha district.

The committee recommended that the ZTBL should reorganise and improve its credit scheme, and introduce innovation and modern technology of tractors, tube-wells, to farmers through private sector.

With regard to insurance policy, the committee recommended that the ZTBL should devise a clear loan policy for individual small farmers. In this regard, a full working plan should be prepared by the ministry of food and agriculture in collaboration with the ministry of finance, FBR and insurance companies.

The committee asserted that ZTBL should come up with efficient ways to revolutionise agricultural lending. The bank should devise strategies for lending to small and marginalised farmers. It should also ensure lending to farmers in livestock, dairy and fisheries and for development purposes including farmers in livestock and dairy fisheries.[DAWN]

Commodity News Snposhot -

National News

Government faces $25 million loss due to delay in sugar import: Senate body informed

ISLAMABAD (August 27, 2010): Senate Standing Committee on Industries and Production on Thursday was informed that Pakistan has faced 25 million dollars loss due to delay in the import of sugar. The Committee was also informed that Pakistan can face 19 million dollars loss in future if sugar is not imported in time.

Wheat damaged by rain, floods being auctioned today

LAHORE (August 27, 2010): The Punjab Food Department will be holding auction for wheat affected due to rain and flood waters at its different storage centres on August 27 (Friday). Sources in the provincial food department told Business Recorder here on Thursday that earlier the auction was scheduled for August 25, but the department did not receive any suitable bid.

Cotton prices avert sharp fall due to fresh partial rains in Sindh, Punjab

KARACHI (August 27, 2010): More rains in some parts of country, helped cotton prices halt sharp losses amid good trading, dealers said on the cotton market on Thursday. The Karachi Cotton Association (KCA) official spot rate was inert at Rs 6,450, they said. In the ready business nearly 11000 bales of cotton changed hands between Rs 6350-6800, they said.

Government urged to take preventive measures to save cotton crops

LAHORE (August 27, 2010): Chairman Pakistan Cotton Forum (PCF) Seth Muhammad Akbar has asked the government to take urgent precautionary measures to save cotton crops from further damage. He said the cotton crop in Punjab has entered into its most crucial phase where picking of each extra boll would matter. Therefore, timely preventive measures are required to save the cotton crops.

Cotton market remains steady

LAHORE (August 27, 2010): Barring a short-lived spike early this week which later petered out, cotton prices have more or less remained steady over the past one week or so. Some volatility creeps in and the market becomes fidgety due to uncertainty bred by rains and floods of gargantuan proportions which have created chaos and havoc over a large part of the country since last one month.

Flash floods destroy crops worth Rs 72 billion

KARACHI (August 27, 2010): Besides displacing millions of people and loss of the lives and property, the current floods have caused a loss of at least Rs 76.067 billion to the standing crops in the Sindh so far, it is learnt.

THE RUPEE: dollar marginally up

KARACHI (August 27, 2010): Slight fluctuations were seen on the currency market on Thursday in process of trading, dealers said. The rupee shed four paisa against dollar for buying at 85.64 and it also slid by two paisa for selling at 85.67, moneychangers said.

International News

Malaysian palm oil rebounds

KUALA LUMPUR (August 27, 2010): Malaysian crude palm oil futures rebounded on Thursday from one-month lows hit the previous day due to technical buying and firmer oils markets. Crude oil rose for a second day in Asian hours as investors bought back into the market after it hit 11-week lows, but analysts said the fundamental outlook was still bearish with ample stocks to cover any rebound in demand.

US wheat futures fall to one-week low

CHICAGO (August 27, 2010): US wheat futures fell 4 percent to their lowest level in a week on Wednesday on a wave of technical selling after Egypt bypassed US supplies in its latest purchase, traders said. "I think its a technical blow-off," said Mike Krueger, president of The Money Farm, a grain market advisory service near Fargo, North Dakota. "When wheat goes, it goes in a hurry. It is running into these sell stops and it just blows right through them."

Gold steadies after US jobless claims fall

* Copper rallies, helped by a weaker dollar

LONDON: Gold steadied on Thursday, having hit its highest level in two months earlier in the day, after US unemployment data beat expectations, boosting the dollar and other risk-linked assets such as equities.

ADB and WB to lead damage assessment

SLAMABAD: The damage and needs assessment of Pakistan following calamitous floods will be conducted by the Asian Development Bank (ADB) and the World Bank (WB). Reconstruction efforts will be initiated following assessments of losses caused by the flooding.

The ADB and the WB were invited by Pakistan to lead the assessment and have been requested to complete the survey by mid-October.

A conference in Islamabad to obtain pledges for the upcoming multi-billion-dollar reconstruction and rehabilitation phase will follow the assessment.

Sixteen areas, divided in half between the ADB and the WB, will be covered in the survey. The survey will focus on estimating three types of costs.

Direct damages caused by the floods will be estimated in the first category of losses. This includes monetary estimates of completely or partially destroyed assets.

Estimates of income losses, decreases in the flow of goods and services and increases in other economic costs comprise the second category of losses.

The costs of rebuilding lost assets and restoring lost services are the final category of the costs to be measured.

Previously, the WB and the ADB carried out a damage assessment of the Malakand operation.
“Numerous damage and needs assessments have been completed by the World Bank in collaboration with other key financiers and donor institutions such as the ADB and that experience will be utilised in this assessment,” said Rachid Benmessaoud, the World Bank country director for Pakistan, labeling this assessment “a challenge for the WB considering the enormity of the disaster.”

“This is the fourth damage and needs assessment the ADB and the WB are conducting in Pakistan in close collaboration with the Economic Affairs Division, but it is unique given the scale of devastation and the geographic spread of the calamity,’’ said Rune Stroem, the ADB Country Director for Pakistan.

Given no fresh wave of flooding occurs, the damage data collection and compilation will continue without interruption and the assessment is expected to be completed by mid-October, he added.

The ADB and WB will also collaborate with One UN, a collaboration of all UN agencies and other key donors.

The floods have affected over 134,000 square feet of territory, displaced 20 million people, destroyed over 720,000 homes and washed away billions of dollars of infrastructure.

Damage and need assessments are generally conducted in the shortest possible time immediately after a natural disaster to provide the government and international community with a credible assessment of the extent of the damage and an estimate of the cost to reconstruct and rehabilitate the damaged infrastructure and services.

Response to natural calamities consists of rescuing, providing immediate relief, initiating early recovery and commencing reconstruction. Rescue and immediate relief efforts focus on providing temporary shelter, food and primary health care. During early recovery, restoring functions interrupted by the disaster, such as communications and service delivery, is prioritised. The reconstruction phase focuses on the replacement of infrastructure damaged or destroyed by the disaster.

The data in the assessment will be scrutinised using various analytical and statistical tools, including rationality and plausibility checks. Damage analysis across sectors will also be conducted by comparing relative percentage damage in various sectors at the provincial and district levels. Field visits will also be conducted to meet various stakeholders, particularly the affected population, to assess the accuracy of the data.
Published in The Express Tribune, August 26^th, 2010.

Commodity News Snapshot-Pakistan

Sugar price may rise further

ISLAMABAD (August 26, 2010): Sugar price is expected to skyrocket to about Rs 90 per kg in the coming weeks as stocks with sugar mills are inadequate, said a market player on Wednesday. Currently, sugar price in Pakistan is higher than in India, Sri Lanka and Bangladesh but lower than Afghanistan. A ministerial committee, headed by the Minister for Industries and Production, Hazar Khan Bijarani, which met last week, did not reach any agreement on a plan to deal with the rising sugar prices.

Sindh's major crops badly hit by floods

KARACHI (August 26, 2010): Three major crops-sugarcane, cotton and rice-have been badly hit by the recent floods as the standing crops on some 1.4 million acres have been badly damaged in Sindh, it is learnt. The field staff of Agriculture Department has submitted a district-wise crop damage report after conducting survey of all 23 districts of the province to find out the agricultural loss to the standing Kharif crops in the province by flash floods, sources told Business Recorder on Wednesday.

Prices at cotton market firm amid strong demand

KARACHI: The Karachi cotton market witnessed a firm trading session while quality lint remained an issue on the trading floor amid strong physical prices, traders at the Karachi Cotton Association (KCA) said Wednesday.

Lint prices remain range-bound, spot rate stays put on cotton market

KARACHI (August 26, 2010): Steady trend was seen on the cotton market on Wednesday as buyers showed no reluctance in new deals on short crop news after historical floods in the country, dealers said. The Karachi Cotton Association (KCA) official spot rate was inert at Rs 6,450, they said. In the ready business nearly 9000 bales of cotton changed hands between Rs 6400-7000, they said.

Dollar slumps versus rupee

KARACHI: The dollar lost strength against the rupee in the interbank market, dealers said on Wednesday. The dollar commenced the day’s trading at Rs 85.66 for buying, lost three paisas and closed at 85.63 for buying and Rs 85.68 for selling. The euro regained its strength versus the rupee, as it started the day’s trading at Rs 108.19 for buying, gained 48 paisas and closed at Rs 108.67 for buying and Rs 108.87 for selling. The British currency appreciated against the rupee, as it started the day’s trading at Rs 131.97 for buying, rose 14 paisas and closed at Rs 132.11 for buying and Rs 132.31 for selling.

Bullion Rates

KARACHI (August 26, 2010): Gold and silver rates in rupees per 10 grams prevailing in major cities on Wednesday (August 25, 2010).

  

'Floods inflicted Rs 250 billion loss to agriculture sector'

MULTAN (August 26, 2010): Former Federal Minister Alhaj Sikandar Hayat Bosan has said that recent devastating floods across the country have caused damage worth Rs 250 billion to the agriculture sector with maximum losses suffered by the small farmers of around Rs 100 billion, while some facing total annihilation of their crops.

Damage to wheat stock: clarification

KARACHI (August 26, 2010): The Food Department is not in agreement with the contents of a news item carried by Business Recorder on Wednesday regarding damage of over 0.3 million tonnes of wheat stock by the recent flood and torrential rains. It is categorically stated that after taking into consideration of the monsoon rains and the damage probably caused by it in consequent thereupon.

Global Commodities Recap – 25th August, 2010

Precious metals rose for a second day as the dollar fell against the euro and raised concern over economic growth that hit equities, stimulating interest in the metal as a safe haven.

Gold is benefitted from renewed investor demand for safe-haven assets as evidence of a slowing economy mounts, which in turn has dragged global equities to their lowest since early July, when a recovery in risk appetite led prices to retreat from June's record highs.

Pakistan cotton crop failure hands opportunity to India

Pakistan’s devastating floods may have destroyed up to a fifth of the country’s cotton crop, analysts say, handing an opportunity to exporters in neighbouring India who are eyeing the shortfall. 

Indian producers will seek to take advantage of a government decision last week to lift a ban on exports to help meet demand from Pakistan’s textile industry.

The restriction was imposed in April to keep domestic prices down. Armed with a bumper crop after a good monsoon, Indian groups are expected to begin exporting to Pakistan from October. “We are 100 per cent ready to meet Pakistan’s appetite,” said Dhiren Sheth, president of the Cotton Association of India, whose members include more than 400 leading cotton growers, ginners and exporters.

Pakistan’s textile sector, which accounts for 60 per cent of the country’s exports, is likely to be hit due to damage to the cotton crop, which could be 20 per cent below usual, according to analysts.

“Large fields of cotton have been washed away by the floods,” said Ibrahim Mughal, analyst with Pakistan’s independent Agri Forum organisation. “We will be short of about three million bales, which will burden our already fragile economy by at least one billion dollars,” Mughal said.

The worst natural disaster in the country’s history has already affected 20 million people in nearly a month of flooding and left 1,500 dead by official count. Five million people have been made homeless across the country, but that figure could surge if the swollen Indus river, whose fast-moving waters are piling pressure on sagging embankments, continues to fill up.

The flooding in Pakistan may result in agricultural losses of nearly three billion dollars, its agriculture ministry has said, with the main farming region of Punjab particularly damaged. “We have been importing cotton from India for the past few years now and should do the same now when we face a huge crisis,” said AB Shahid, an independent economist based in Pakistan.

Pakistan is one of the main importers of cotton from India, which is the second largest producer of the crop worldwide after China. Some mills are already calling for “regulated” exports, however, fearing a spurt in demand from Pakistan could send prices soaring in India.

“India should export only surplus. If the government does not regulate exports, the situation may get out of hand,” said IG Duria, corporate general manager with the Punjab-based Vardhman group, a leading mill.
Cotton prices are at a peak for the year, up by 12 percent in August compared to levels last month. Analysts forecast India will produce nearly 32 million bales of cotton in 2010-11, against 28 million bales in 2009-10.
Farm output is expected to rise in India owing to plentiful monsoon rains — a great relief to hundreds of millions of Indian farmers who struggled with the weakest rains in 37 years in 2009.

Indian inflation, after hitting double figures earlier this year because of high food prices, is now in decline, but is still the highest of the Group of 20 nations at 9.97 percent.

“Exports may be capped if September rains hurt the crop,” said Mehul Agrawal, agri-commodities analyst with Mumbai-based brokerage Sharekhan. Earlier this month, India offered five million dollars in flood aid to Pakistan, which Islamabad said was a “very welcome initiative”.

India and Pakistan have taken steps to improve a problematic relationship that was strained by the 2008 Mumbai terror attacks, which India blamed on militants from Pakistan. [Tribune.com.pk]

Commodity News Snapshot - Pakistan

Pakistan to receive 77,500T of sugar from India, Brazil

ISLAMABAD: Pakistan is likely to receive 77,500 tonnes of white sugar from India and Brazil next week, adding to national stocks of 155,948 tonnes, a spokesman for the Trading Corporation of Pakistan (TCP) said Tuesday. Three vessels will be bringing in 77,500 tonnes of white sugar from the two countries during the next 10 days, spokesman TCP said.

Floods cause Rs 244.6bn loss to agri sector: MinFA

* Small farmers suffer loss of Rs 98bn, while some face total annihilation of their crops

ISLAMABAD: The devastating floods across the country have caused damage worth Rs 244.6 billion to the agriculture sector with maximum losses suffered by the small farmers of around Rs 98 billion, while some facing total annihilation of their crops.

Bt cotton variety to help achieve Cotton Vision 2015

ISLAMABAD: Cotton alone contributes nearly 65 percent of the foreign exchange earnings of Pakistan and the Bt cotton varieties (IR 3701 and IR 1524) developed by Pakistan Atomic Energy Commission’s (PAEC) Biotech Centre, NIBGE hopefully will help in achieving cotton vision 2015 of government. The object is to boost production to 20 million bales by 2015, an official of PAEC said.

Estimates of loss to cotton crop in the country

Textile sector to spend $1.01bn on import

KARACHI: The government and private sector’s estimates of cotton loss in recent flash flood in Sindh and Punjab reflect a loss of 1.4 million bales, Pakistan Cotton Ginners Association (PCGA) said Tuesday.

Spot rate rises to Rs 6,450/maund

KARACHI: The Karachi cotton market observed a firm trading session amid increasing spot rate and better volumes, Karachi Cotton Association (KCA) traders said on Tuesday.

The KCA revised the spot rate upward by Rs 150 per maund to Rs 6,450 per maund on fair demand by the buyers, especially the spinning sector, floor brokers said. KCA senior trader Shakeel Ahmad said, “The prices increased reflecting the rising demand from buyers other than from leading mills and spinners.”

PCGA executive body elected unopposed

MULTAN (August 25, 2010): Fifteen members of Pakistan Cotton Ginners Association (PCGA)'s central executive committee were elected unopposed for the year 2010-11. According to election commission, total 16 candidates filed their candidature for the 15 vacant seats of executive committee. Of them ex-chairman Haji Muhammad Ibrahim withdrew his candidature.

Rates turn higher as mills resort to pre-Eid buying on cotton market

KARACHI (August 25, 2010): Prices showed upward trend on the cotton market on Tuesday due to pre-Eid purchasing by the mills, dealers said. The Karachi Cotton Association (KCA) official spot rate was raised by Rs 150 to Rs 6,450, they said. In the ready business nearly 16000 bales of cotton changed between Rs 6300-7100, they said.

0.675 million tons of wheat stocks damaged by floods

ISLAMABAD (August 25, 2010): The floods have damaged up to 675,000 tons wheat lying under open sky, Agriculture Ministry officials said. They said that according to initial estimates Pakistan has sustained loss of $20.25 million by the flood. Sources said that the flood had damaged different crops sown on 1.72 million hectares.

 THE RUPEE: dollar inches up

KARACHI (August 25, 2010): Mixed price pattern was seen on the local currency market on Tuesday in process of trading, dealers said. On the interbank market the rupee fell by four paisa in relation to dollar for buying at 85.64 and it also slid by three paisa for selling at 85.68, moneychangers said. In the second Asian trade euro hit a nine-year low against yen on Tuesday as the loss of key technical support led speculators to short the currency in the hope of forcing stop-loss sales against both yen and dollar.

Gold slips to Rs 33,214 per 10 grams

KARACHI: Gold slipped by Rs 128 to Rs 33,214 per 10 grams in local bullion market Tuesday, as its international price also declined to $ 1,217.50 an ounce, market sources said.

Oil imports rise to record 1.9 million tons in July

KARACHI (August 25, 2010): The country's oil imports rose to the highest-ever level of 1.9 million tons in July 2010 as compared to 1.6 million tons in the same month in 2009, showing a growth of 20 percent on year-on-year basis. "The major reason for such high growth in oil import volumes is mounting demand of furnace oil, a major fuel for thermal power generation as its imports grew by 51 percent on yearly basis to 0.7 million tons," analysts said.

Floods cause Rs 244.6bn loss to agri sector: MinFA

* Small farmers suffer loss of Rs 98bn, while some face total annihilation of their crops
ISLAMABAD: The devastating floods across the country have caused damage worth Rs 244.6 billion to the agriculture sector with maximum losses suffered by the small farmers of around Rs 98 billion, while some facing total annihilation of their crops.

This was revealed in the initial estimate prepared by the Ministry of Food and Agriculture (MinFA) on Monday in coordination with the provincial governments and Azad Jammu and Kashmir (AJ&K) government. However, the estimate prepared by the MinFA has also said that the agriculture loss could be higher in Southern Punjab and some parts of Sindh as clear pictures from many areas have yet not been received. The ministry has said that maximum damage by the floods has been made to the minor crops of Kharif season, which includes jawar, maize, moong and mash pulses and some citrus fruit varieties. “The most upsetting thing is that the minor crops are mainly cultivated by small farmers and in areas where growers have small land holdings,” said a senior official of the MinFA. “This loss is the most serious setback for the farming community because most of the small farmers have lost considerable number of livestock too as they had limited facility for their animals.” Among the major cash crops the ministry’s report highlighted that the largest loss of Rs 71.4 billion has been faced by the cotton crop.

Cotton was sown over 3.1 hectares in the current Kharif season out of which the floods have destroyed crops at 0.51 million hectares, as a result the production is expected to decline by almost 15 percent to 11.7 million bales as against the targeted cotton production of 14 million bales in 2010.

The Minister for Food and Agriculture Nazar Muhammad Gondal has said that Pakistan will face serious cotton shortage in coming days as more than 15 percent of the crop has already been hit by the floods.

“Two million bales have been destroyed in the floods in Punjab alone and we have yet to receive the complete details,” the minister added. The cotton crop has been seriously damaged in Bakkhar, Layyah and Mianwali districts apart from many other areas in southern districts of Punjab, while the left bank of River Indus in Sindh is the cotton belt and the cotton crops have suffered in Sukkur, Khairpur, Ghotki, Naushero Feroze and Benazirabad districts. The paddy crops in the country have faced a loss of Rs 56.3 billion and the worst hit areas are right bank districts of Sindh.

The countrywide paddy production is expected to decline by around 27 percent to 4.35 million tonnes as against the original estimated production of 5.95 million tonnes. Among the major crops, sugarcane farmers have suffered a loss of Rs 19.3 billion and its production is expected to decline to 47.23 million tonnes as against the estimated production of 54.83 million tonnes.

Pakistan Sugar Mills Association (PSMA) Chairman Iskander khan said that the initial reports suggest that the sugar cane crops in Charsadda, DI Khan and some parts of Southern Punjab have suffered damages. He said that 4 million tonnes of sugar production was expected in the coming season but now 3.8 million tonnes is likely to be obtained. The MinFA has estimated that the other serious issue faced by the country in the near future would be shortage of vegetables.[DailyTimes]