Agribusiness Support Fund (ASF) has approved 79 grants of about Rs 27.662 million for various projects during the first quarter of current year 2008-09 against 66 approved during the same period of year 2007-08. This has brought the total number of grants to 844 for a total value of Rs 275.472 million approved by the ASF to-date, claimed the ASF quarterly report, a copy of which was made available to Business Recorder on Monday.
The report said that the most successful component has been the formation of Farmer Enterprise Groups and support extended to them to enhance their productivity, deliver products to customers and add value to their produce.
It further said that the lag in disbursement of funds for approved projects continues to remain a matter of concern. The reason for the lag in disbursement is that in accordance with the existing procedures, funding for approved projects is made on a reimbursable basis after completion of agreed milestones.
Further, changes in the SOPs have already been proposed to help speed up the disbursement process for approved projects, while adopting a 'hands-off' approach to avoid getting involved in implementation of programmes, the report added.
During the quarter, 40 grants were approved for BDS support to the existing and start-up agribusiness enterprises. A diverse range of activities were approved that include support in acquisition of Global GAP, ISO, and HACCP certifications, development and installation of customised enterprise resource planning (ERP) software, participation in international exhibitions, cold storage start ups, feasibility studies and international training programmes.
Two grants were approved during the quarter for support to BDS providers. This included support to two professionals to participate in training programmes titled 'Train-the-Trainer' and 'Third-Party-Auditor Programme,' both conducted by British Retail Consortium (BRC) UK.
These ASF-supported applicants are now the first ever BRC-trained professionals in the history of Pakistan. BRC is the trade association representing the whole range of UK retailers including large multiples, department stores and independent shops, selling a wide selection of products.
The objective of BRC Global Standards is to specify safety and quality criteria required to be in place within a manufacturing organisation to supply product to UK retailers. Exporters of fruits and vegetables in the European market are now asked to acquire BRC certification before shipment of their consignments.
37 grants were approved during the quarter for Farmers Enterprise Groups (FEGs). To-date ASF has received 635 grant proposals from FEGs of which, 575 grant proposals have been approved by the appraisal panel. Some of the activities undertaken by the FEGs so far include milk collection, chilling and distribution, establishment of Apricot dehydration units, processing and marketing of product, establishment of tomato paste plant.
Further, establishment of common facility centre for apple growers, nurseries development, off-season vegetable, improvement in packing of grapes and apples and access to new markets, establishment of potato chips making unit, support in strawberry cultivation, packing, and market access, support in pickles preparation, packing and marketing, mushroom production and marketing, onion seed production and potato seeds production are also included.
As per the report, the ASF would offer a farmer risk guarantee scheme in collaboration with suitable enterprises engaged in the agribusiness sector. Grant products would be compatible with lending products offered by the partner financial institutions (PFIs).
Furthermore, the ASF would contribute up to 25 percent of the purchase cost of the asset(s) leased or financed through the PFIs. A voucher scheme would also be initiated for demand driven BDS and agriculture extension services, the report concluded.
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