Agriculture Development A Way Forward

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Agriculture DevelopmentA Way Forward
Marketing Processing Infrastructure
8 July, 2009
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World Experience Success Stories

• Chile
• Investment in Infrastructure
• Compliance Mechanism
• Interventions by Multinationals, Production
  Management Technology, e.g. grapes
• Cooperatives
• Terms of Trade (FTAs, Bilaterals etc)
• India
• Investment in Infrastructure Institutional
  Framework Processing Industry
• Australia
• Investment in Infrastructure
• High Value Addition (variety)
• Production Management Technology

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Agricultural ProductionsFood Security GDP
Growth Drivers
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Project Rationale

• Food security (Effective intervention, food
  storage)
• Integration in Value Chain System including Farm
  Inputs, Outputs and Agriculture Finance
• Ensuring Farmers Profitability
• Ensuring Right time, price, quality, quantity for
  Farm Supplies (seeds, fertilizer, pesticides
  etc.)
• Reduction in Post-harvest losses (Currently
  30-40 for perishables and 15 for grains)
• Implementation of Quality Standards for access
  to premium markets

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Local Collection Point (Perishables) Pre
Cooling units Transportation Extension
Training IT
Private Sector Village Based Farmers
Organizations / Growers
Farm Service Center
Inputs Infrastructure Fertilizers Seeds Pesticides
Diesel Lubes Farm Services - Rental Farm
Machinery Extension Training etc
CreditAgri Finance Support Services Inventory
CreditAgriculture Financing (Production
Capital Loans)Commodity Financing
Output Infrastructure
Perishables Cold Stores Sorting
Platforms Grading Packing Reefer
Logistics Electronic Spot Market Certification
Grains Temp. Grain Storages (Silos) Bulk
Handling Logistics Electronic Spot
Market Certification
Large Scale Long Term Storages (Silos Cold
Stores)
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Common Infrastructure

• Input Provision, Output Handling/Storage and All
  Allied Services

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Farm Supplies InfrastructureEstimated Cost

• Physical Infrastructure
• 
  Billion Rs. US
  Million
• 200 Agri Service Centers 2.00
  25.00
• Warehousing for fertilizer, seedpesticide etc
• Infrastructure for diesel lubricantsale
• Farm Equipment
• Agriculture Credit Support Services
  0.200 2.50
• Total 2.20 27.50

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Grains InfrastructureEstimated Cost

• Physical Infrastructure
• 
  Rs. In Million US in Million
• 2.00 Million Tons of Grain Storage Handling
  Equipment 12000 150
• 40 Collection Points 25,000 Tons each for Short
  Term Storage
• 5 Long Term Storage Terminals 200,000 Tons each
• Bulk Handling Logistics System
  1600 20
• Total 13,600 (13.6 Bil) 170

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Perishables InfrastructureEstimated Cost

• (Rs. in billion)
  (US in million)
• a) 1000 Collection points
• (including pre-cooling rooms)
  
  2.000 25.000
• b) 40 Modern pack-houses 8.000
  100.000
• (including cold storage facilities)
• c) 160 Vegetable sorting platforms 3.000
  37.500
• (including cold storage facilities)
• d) 2 Reefers/container yards 2.550
  31.875
• (with 200 containers 50 CA containers each
• at Lahore Karachi)
• e) 6 Food Testing Laboratories 1.000
  12.500

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Proposed Investment
Total Cost Rs. 37.73 Billion USD 472.00
Million
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Project Regulatory Institutional Support

• Regulations and Policy
• Amendments in market legislation such as Market
  Committee Act
• Establishing National Grades Standards (PakGAP)
• Pre-Shipment Inspection for Exports
• Operational Mechanism
• Public Private Partnership through formations of
  Companies - Private Sector lead Management
• 3 Distinct Businesses
• 1. Farm Supplies Services
• 2. Grains Trading, Logistics, Handling
  Storage
• 3. Perishables Primary Processing, Trading,
  Logistics, Handling Storage
• Public Funds utilized towards Equity of Farmers
  Village Organizations / Growers

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Project Status

• Pre budget meeting held at Planning Commission
• Deputy Chairman Planning Commission, MOS Finance
  and EAD, Minister MINFA, Minister Privatization
  Commission
• Project Approved for budget 2009-10
• Pre budget meeting held with advisor finance
• Project approved for inclusion in budget 2009-10
• Project of Rs. 37.00 billion included in budget
  2009-10 with current allocation of Rs. 500
  million

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Project Status contd...

• Post budget meeting held with Deputy Chairman and
  Secretary Planning Commission
• PC-II approved. Rs. 7.00 million allocated for
  feasibility and PC-I
• On initiative of Deputy Chairman Planning
  Commission, meeting planned with CM Punjab to
  discuss project (date expected within this week)

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Way Forward

• Develop feasibility and PC-I in collaboration
  with Stakeholders. (2 months)
• Business Plan Project Structure Network
  Planning (1 month) Partnership Agreements (1
  month) Site Acquisition (3 months onwards)
  Rollout (3 months onwards) Completion (18 24
  months)

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Thank You