Saudi plans DAP plant in Pakistan

Islamabad: The Saudi government is likely to set up DAP manufacturing plant in Pakistan as the imported fertiliser is too costly and beyond the purchasing power of small growers. This was announced by Federal Minister for Food, Agriculture and Livestock (Minfal) Nazar Mohammad Gondal.

Talking to media, Gondal revealed that during his visit to Saudi Arabia, the Saudi government promised to purchase about one million tons Basmati rice from Pakistan. The Saudi government would provide better price of the commodity.

The minister emphasised that the government of Pakistan is interested in exporting token rice to Saudi government and would supply rest of the quantity when the new rice crops would arrive in the market after 90 days.

'The Saudi government has expressed willingness to make investment to boost Pakistan's agriculture. They would help Pakistan in enhancing agriculture productivity and also promised to consider the establishment of the DAP plant. It would greatly help Pakistan to produce DAP locally, which would be provided to growers at reduced prices,' the minister stated.

The Saudi government is interested in investing in the development of dairy products, olive oil production and fisheries. All these agreements would be signed on the basis of joint ventures. 'Pakistan has not agreed to the Saudi demand for purchasing land for enhancing production of different agriculture related products,' Gondal told the media.

The government has directed sugar mills to make payments to cane growers till June 30th, otherwise, a strict legal action will be taken against those mills that are defaulter of Rs 4 billion.

The minister said that the government is ready to take strict action against the defaulter sugar mills across the country. He said that through the government intervention, Rs 44.6 billion had been provided to cane growers from millers. However, there were some millers who still have to pay an amount of Rs 4 billion to growers.

The minister said that there were 19 defaulter sugar mills in three provinces, namely Sindh 7, Punjab 9 and NWFP 3. 'If they failed to clear growers dues till end of this month, names of these defaulter sugar mills would be made public,' he warned. About new proposal for the upcoming budget 2008-09, Gondal said the food ministry should formulate a comprehensive policy so as to ensure fair prices for growers.

'We have asked the finance ministry to arrange import of different agriculture related machinery at zero duty.' The ministry also forwarded the proposal of reduction in interest rate that was currently 9 percent on agriculture loan. 'We also plan to expand the project namely 'crops maximisation project' to 5000 villages, which is currently covering only 1200 villages.' The Minfal also wanted to initiate insurance scheme for farmers in the new budget.

Under a new initiative, the minister said the government planned to introduce 'Benazir Cards' or 'Aurat Bachat Cards' scheme for poor people in the new budget. Under this scheme, he said, a person would be provided Rs 1000 to Rs 1500 per month for purchase of only food items at subsidised rates.