Concept Paper Govt Seed Farm Hangu

Proforma-IIGOVERNMENT OF KHYBER PAKHTUNKHWAPLANNING & DEVELOPMENT DEPARTMENT

Project Concept Form for New Initiative

1. Cost Exp. Upto

Jun 11

Allocation for 2011-12 TFBeyond 2011-12

Local Foreign Local ForeignCap Rev Total

39.952 -- -- -- 8.976 8.976 -- 30.976

1. Title of the Proposed Project: Establishment of Govt. Seed Farm in Jarma Kohat, swapping the Barani Agri. Farm Hangu.

2. Proponent Information. Agriculture is a mean stream of our economy. It is a major source of livelihood of the people of Pakistan and shares 22% in the national gross domestic product. The sector also accommodates more than 40% to the labour force. Wheat is staple food of the inhabitants and is grown on 9044385 hectare on country level. In Khyber Pakhtunkhwa, wheat occupies 769362 hectares (about 9% of the country share).

The wheat crop occupies a vital position in Pakistan’s agrarian economy. Its share in terms of percentage area under major crops has remained around 36% for the last three decades (Agricultural Statistics of Pakistan). The production of the wheat crop in Pakistan is handled by private producers, but its marketing and trade have mainly been regulated by the government through ‘support price’ policies announced by the Government of Pakistan at the beginning of each cropping season. According to economic theory, the announcement of ‘support or procurement prices’ at the time of wheat sowing, the practice of wheat procurement,

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and the size of wheat stocks procured positively affect the area under wheat production and level

of wheat production.

Despite the fact that the wheat crop contributes significantly toward the economy of Pakistan, there has been little analytical research carried out on its supply and demand determinants, with the exception of some research on the cost of production, supply response, and demand elasticities. Even studies carried out on cost, supply, and demand do not provide a complete picture; for instance, most of the studies carried out on the cost of production provide different estimates for the same crop and year due mainly to over- or underestimation (Arifullah, 2007).

Khyber Pakhtunkhwa having 24.674 million population of settled districts and 4.119 million of FATA, should produce 3.566 million tonnes of wheat while production for 2009-10 remained 1.152 million tonnes i.e. only 29% of its requirements.

Economically the public sector should provide 20% of the requirement to maintain balance in demand and supply and rationalize costs of inputs. So to provide seed requirements, public sector should have to produce 18.742 metric tonnes of wheat seed.

For production of required quantity of seed, there is a need of 23400 acres land. Agriculture Extension have only 1500 acres cultivable pieces of land in DIKhan, Hangu, Mardan and Haripur.

As far as matter of Hangu farm is concerned, the land was purchased by the Agriculture Department Khyber Paakhtunkhwa in 1969 for the purpose of seed farm, fruit nursery farm. The area of that farm was 395 kanals (49.37 acres). In the following year, keeping in view its prime location, the local elders/fudals, politicians etc had

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tried to snatch this land for their purposes. A 2.5 acres piece of land was taken for Sports Complax and 5 Acres for for Fauji Foundation Hospital. C&W Department had constructed a dug well in 1947 which is still functional but insufficient to provide the farm with sufficient irrigational water. That was why the fruit nursery farm activities were discontinued and it was supposed to produce certified seed of crops for rain fed areas.

Now the district officer agriculture was asked to submit proposal to functionalize the farm and to produce quality seed of crops. He, under his letter No. 25 dated 21/1/2011 that the seed farm Hangu is situated in centralized area of Hangu city and houses are situated around it. Therefore the encroachment in the farm can not be controlled. Secondly the farm is purely Barani and in case of drought season the production of the farm could not be used for the seed purpose. The land being at a prime location is commercially valuable and can fetch a handsome amount, if is disposed off through open auction. The amount thus to be earned should be utilized to purchase irrigated piece of land some where else with in the district and adjacent.

The proposal, passed on to the government for its approval, which is under process.

The District Officer Agriculture has negotiated with a number of people and also is in search of state land available in Hangu District either in suburbs or adjacent villages to swap the present land with new location. It is hoped that the land would shortly be identified and the present place will be substituted for establishment of Barani Agriculture Farm Hangu in a suitable

atmosphere for getting seed production through multiplication for Barani areas.

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3. Goals & objectives set to be achieved. • To promote the use of improved quality

seed conforming to national and international quality standards • To promote the development of seed industry for improving crop production in Khyber Pakhtunkhwa. • To represent the interests of the seed industry in Khyber Pakhtunkhwa. • To improve communication between the seed industry in the Province and the country. • To promote activities that lead to regulatory harmonization in the province to facilitate seed movement • To interact with national and international organization involved in seed activities to promote the interests of the seed industry • To improve communication between seed suppliers in Khyber Pakhtunkhwa by providing necessary seed industry information and holding meetings, seminars, workshops, etc • To advise relevant government regulatory authorities in drafting rules and regulations pertaining to seed trade, etc

4. Rational for ADP Funding. Rs. 39.952 million are required to be provided under ADP. Detail costs involved are annexed with the proposal.

5. Geographical Coverage (For whole province or specific district/tehsil)

Hangu District.

. 6. Is Project aligned with CDS? Yes.

7. Nearest place where similar facility is available.

As mentioned above, the Government Seed Farm Hangu would be swapped and the proposed farm is likely to be established in suburbs of Hangu District or in adjacent vill of the Hangu Tehsil.

8. Financial Phasing Financial Facing of the project is as under:

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Note: Component wise detail of expenditure is annexed as Annexure 1, 2 & 3.

9. Benefits (Types & Number) Seed requirements for Hangu and Kohat Districts are 4305 metric tonnes which will bring an area of 43050 hectares under wheat. The project will produce 67.18 metric tonnes wheat seed with is about 2% of the total demand. Rest of the demand will be fulfilled through supply from Punjab seed corporation, frontier seed industry (Agriculture Development Fund). The local will have to receive improved seed / certified seed and will fetch better economical yield in average. The detail is given as:

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Particulars 2011-12 2012-13 2013-14 2014-15 2015-16 Total Establishment ChargesPay of Farm Manager @ Rs. 45000/- month

540,000 567,000 595,350 625,118 656,373 2,983,841

Pay of Agriculture Inspector @ Rs. 15000/- p.m

180,000 189,000 198,450 208,373 218,791 994,614

Pay of one Storekeeper/Acct. Clerk @ 15000/- p.m.

180,000 189,000 198,450 208,373 218,791 994,614

Pay of 2 Field Assistants @ Rs. 15000/- p.m

360,000 378,000 396,900 416,745 437,582 1,989,227

Pay of 2 Budders @ Rs. 10000/- p.m 240,000 252,000 264,600 277,830 291,722 1,326,152 Pay of 2 Field Workers @ Rs. 7000/- p.m 168,000 176,400 185,220 194,481 204,205 928,306 Pay of 3 Farm Chowkidars @ Rs. 7000/- p.m

252,000 264,600 277,830 291,722 306,308 1,392,459

Total Establishment Charges 1,920,000 2,016,000 2,116,800 2,222,640 2,333,772 10,609,212 Purchase of Farm Machinery 2,065,000 - - - - 2,065,000 Motorcycle for Farm Manager - 80,000 - - - 80,000 Linning of Water Channels 1,500,000 - - - - 1,500,000 POL Charges 976,000 256,000 294,400 338,560 389,344 2,254,304 Labour Charges 600,000 690,000 793,500 912,525 1,049,404 4,045,429 Tube Well 1,000,000 - - - - 1,000,000 Cost of Inputs 892,800 1,026,720 1,180,728 1,357,837 1,561,513 6,019,598 Construction of Offi ce/Store/Chowkidar Qtr

- 12,000,000 - - - 12,000,000

Others 22,200 57,280 64,572 68,438 165,967 378,457 8,976,000 16,126,000 4,450,000 4,900,000 5,500,000 39,952,000

Crop Area tobe sown (Acres)

Expectedyield (maund/ acre)

Total Expedtedproduct (M.Tonnes)

Area to bebenefited with produce(Acres)

Income to be derieved from the produced (Million)

Wheat 60 30 67.18 1679.59 2.69Rs.

Maize 20 20 14.93 933.11 0.60Rs.

Paddy 20 31 23.14 2314.10 0.81Rs.

4.09Rs. Total / annum gross income to be derieved)

10.Expected out put (Qualitative & Quantative).

With the help of this project the farming community will fetch better income and it will change socio economic conditions of the hard living farming community/flood victims of the project.

11.Priority(indicate Top, Normal, or Low)

Normal

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Annexure ‘A’

Demand of Wheat / Human Consumption in Khyber Pakhtunkhwa

SEED REQUIREMENTS OF KHYBER PAKHTUNKHWA & PUBLIC SECTOR TARGET AND PROJECT SHARE IN THE DEMAND OF SEEDS.

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(Area '000' Acres)

Year Punjab Sindh Khyber P.K. Balochistan Pakistan%age share of

KPK2004-05 15762.9 2192.85 1849.87 847.83 20653.45 9.0%2005-06 16021.13 2306.03 1782.4 766.04 20875.6 8.5%2006-07 15896.09 2427.11 1863.95 1010.43 21197.59 8.8%2007-08 15819.98 2446.14 1846.9 1014.39 21127.41 8.7%2008-09 16892.93 2548.69 1901.51 1010.43 22353.57 8.5%Source: Agricultural Statistics of Pakistan.

PROVINCE WISE AREA OF WHEAT CROP

Year Punjab Sindh Khyber P.K. Balochistan Pakistan%age Share

of KPK2004-05 17375 2508.6 1091.1 637.6 21612.3 5.05%2005-06 16776 2750.3 1100.6 649.9 21276.8 5.17%2006-07 17853 3409.2 1160.4 872.1 23294.7 4.98%2007-08 15607 3411.4 1071.8 868.6 20958.8 5.11%2008-09 18420 3540.2 1204.5 868.2 24032.9 5.01%

Source: Agricultural Statistics of Pakistan.

Production '000' Tonnes)

PROVINCE WISE PRODUCTION OF WHEAT CROP

Year District/Agency Population(Million)

Per capitaconsumption(Kgs)

Wheat Requirements (M.Tonnes)

Wheat Production(M.Tonnes)

Availablefor Human consumption(90% of the produce)

Diffi ciency(M.Tonnes)

Settled Districts 24.647FATA 4.119Total: 28.766

124 3566984 1152470 1037223 25297612009-10

Cost of Production of Crops to be Sown on the Proposed Farm

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Sr. No. Particultures Wheat Maize Padday1 Total Seed Requirements (M.Tonnes) 93713.17 16683.9 1329.372 20% Seed Requirement have

to be provided by public sector (M.Tonnes)

18742.63 3336.78 265.874

3 Project Share (M.Tonnes) 67.18 14.93 23.144 %age Share of Public Sector in Seed

Supply over the due share of 20%demand.

0.36% 0.45% 8.70%

Sr. No. Input Unit Qty Unit Cost Total Amount1 Seed Kgs 50 40.00Rs. 2,000.00Rs. 2 DAP bag 1 3,400.00Rs. 3,400.00Rs. 3 Urea bag 1 1,000.00Rs. 1,000.00Rs. 4 Weedicides application No. 1 1,000.00Rs. 1,000.00Rs. 5 Ploughing & Seeding

(5 tractor hrs)Lit/hr 25 80.00Rs. 2,000.00Rs.

9,400.00Rs.

Sr. No. Input Unit Qty Unit Cost Total Amount1 Seed Kgs 16 40.00Rs. 640.00Rs. 2 DAP bag 1 3,400.00Rs. 3,400.00Rs. 3 Urea bag 1 1,000.00Rs. 1,000.00Rs. 4 Pest./Weedicides application No. 2 800.00Rs. 1,600.00Rs. 5 Ploughing & Seeding


8,640.00Rs.

Sr. No. Input Unit Qty Unit Cost Total Amount1 Seed Kgs 10 40.00Rs. 400.00Rs. 2 DAP bag 1 3,400.00Rs. 3,400.00Rs. 3 Urea bag 1 1,000.00Rs. 1,000.00Rs. 4 Zinc Kgs 5 80.00Rs. 400.00Rs. 5 Weedicides application No. 1 1,000.00Rs. 1,000.00Rs. 6 Ploughing & Seeding


7,800.00Rs.

a. Wheat Crop

Total :

b. Maize

Total :

c. Paddy Crop

Total :

Annexure ‘B’

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Are

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1 2011-12 60 9,400 564,000 20 8,640 172,800 20 7,800 156,000 892,800

2 2012-13 60 10,810 648,600 20 9,936 198,720 20 8,970 179,400 1,026,720

3 2013-14 60 12,432 745,890 20 11,426 228,528 20 10,316 206,310 1,180,728

4 2014-15 60 14,296 857,774 20 13,140 262,807 20 11,863 237,257 1,357,837

5 2015-16 60 16,441 986,440 20 15,111 302,228 20 13,642 272,845 1,561,513

3,802,703 1,165,083 100 - 1,051,811 6,019,598

Total Input Cost of Crops for the Project Period

Sr.

No

.

Year Wheat Crop Maize Crop Paddy Crop Total Amount(Rs.)

Annexure C

Annual Indirect Income from the Project

Annexure ‘D’

Itemized Cost of the Project

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S.No. Name of Crop

Area to be benefited from the produce of the farm(Acres)

Per unityield(maund/ acre)

Total production(mill tonnes)

Expected Income From the Yield (in Mill Rs.)

1 Wheat 1679.589 30.00 50387.670 45.35

2 Maize 933.105 20.00 18662.100 22.39

3 Paddy 2314.100 31.00 71737.112 43.04

Total : 110.79

Area(Acres)

Tractorhrs/acre

POLConsump. Lit. p/hr

POLRate/ litre

Amount Required

Land Reclamation/Levelling 100 15 6 80.00Rs. 720,000.00Rs.

Land Development 80 5 5 80.00Rs. 160,000.00Rs. 600,000.00Rs.

POL for Ploughing 80 3 5 80.00Rs. 96,000.00Rs.

Lining Rate/unit Amount Required

PCPs 1,500.00Rs. 1,500,000.00Rs.

Unit Rate/unit Amount Required

1 800,000.00Rs. 800,000.00Rs.

Rate/unit Amount Required

50,000.00Rs. 50,000.00Rs.


80,000.00Rs. 80,000.00Rs.

Rate/unit Amount Required60,000.00Rs. 60,000.00Rs.

Linning of water channels

Purchase of Tractors

Cultivator

Fertilizer & Seed Placement Drill

Disk Plough Unit1

1

Unit

Unit

1

Tractor

85 Hp

1,000

Meters

Daily Paid Labour to be engaged. 2 Lab/Acre/Day for 15 Days @ Rs. 250/- p.day


225,000.00Rs. 225,000.00Rs.

300,000.00Rs. 300,000.00Rs. Rs. 500,000 500,000.00Rs.

10,000.00Rs. 50,000.00Rs.

Rs. 1,000,000 1,000,000.00Rs.

Wheat Thresher

1

Unit

Tractor Trolly (Hydrolic) 1

Nursery Tools/Budding Grafting Kit 5

Tube Well Construction 1

Wheat Bhoosa Chopper 1

Annexure ‘E’

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Year/Province Geographicalarea

Total areareported

col.(4+5+6+7)

Forestarea

Not Available for

cultivation

Culturablewaste

Cultivatedareacol. (8+9)

Currentfallow

Net areasown

Area sown more than once

Total cropped area

col.(9+10)

Agricultureland(13+14)

Arableland(6+7)

1 2 3 4 5 6 7 8 9 10 11 12 13

Total 79.61 57.06 4.21 23.43 8.22 21.2 4.98 16.22 7.41 23.63 33.63 29.42

Punjab(R) 20.63 17.48 0.49 2.97 1.6 12.42 1.44 10.98 5.75 16.73 14.51 14.02

Sindh 14.09 14.09 1.03 6.74 1.44 4.88 2.01 2.87 1.01 3.88 7.35 6.32

Khyber Pakhtunkhwa

10.17 8.34 1.33 3.89 1.21 1.91 0.61 1.3 0.57 1.87 4.45 3.12

Balochistan 34.72 17.15 1.36 9.83 3.97 1.99 0.92 1.07 0.08 1.15 7.32 5.96

%age of KPK 12.8% 14.6% 31.6% 16.6% 14.7% 9.0% 12.2% 8.0% 7.7% 7.9% 13.2% 10.6%

LAND UTILIZATION STATISTICS(Area in million hectares)

Annexure ‘F’5 Years Cost Summary

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Particulars 2011-12 2012-13 2013-14 2014-15 2015-16 Total Establishment ChargesPay of Farm Manager @ Rs. 45000/- month

540,000 567,000 595,350 625,118 656,373 2,983,841

Pay of Agriculture Inspector @ Rs. 15000/- p.m

180,000 189,000 198,450 208,373 218,791 994,614

Pay of one Storekeeper/Acct. Clerk @ 15000/- p.m.

180,000 189,000 198,450 208,373 218,791 994,614

Pay of 2 Field Assistants @ Rs. 15000/- p.m

360,000 378,000 396,900 416,745 437,582 1,989,227

Pay of 2 Budders @ Rs. 10000/- p.m 240,000 252,000 264,600 277,830 291,722 1,326,152 Pay of 2 Field Workers @ Rs. 7000/- p.m 168,000 176,400 185,220 194,481 204,205 928,306 Pay of 3 Farm Chowkidars @ Rs. 7000/- p.m

252,000 264,600 277,830 291,722 306,308 1,392,459

Total Establishment Charges 1,920,000 2,016,000 2,116,800 2,222,640 2,333,772 10,609,212 Purchase of Farm Machinery 2,065,000 - - - - 2,065,000 Motorcycle for Farm Manager - 80,000 - - - 80,000 Linning of Water Channels 1,500,000 - - - - 1,500,000 POL Charges 976,000 256,000 294,400 338,560 389,344 2,254,304 Labour Charges 600,000 690,000 793,500 912,525 1,049,404 4,045,429 Tube Well 1,000,000 - - - - 1,000,000 Cost of Inputs 892,800 1,026,720 1,180,728 1,357,837 1,561,513 6,019,598 Construction of Offi ce/Store/Chowkidar Qtr

- 12,000,000 - - - 12,000,000

Others 22,200 57,280 64,572 68,438 165,967 378,457 8,976,000 16,126,000 4,450,000 4,900,000 5,500,000 39,952,000

Concept Paper Govt Seed Farm Hangu

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