Federal government has decided to ban export of live animals and meat for three months after the Economic Co-ordination Committee (ECC) of the cabinet took strong exception to sharp increase in meat prices, official sources told Business Recorder.
The ECC was informed on July 20, 2011 that extraordinary export of live animals, meat and meat products resulted in abnormal increase in domestic prices. A press release issued by the Commerce Ministry said that restriction on export of live animals and meat would continue till Eid-ul-Azha. Interestingly, the press release has been issued without knowledge of the proposal being cleared by the ECC or the issuance of the necessary notification by the Commerce Ministry.
According to official documents the import/export falls under the purviews of the Ministry of Commerce but with the creation of Ministry of Live Stock and Dairy Development (ML&DD) the regulation of export/ import of live animals was entrusted to ML&DD.
On a ML&DD summary, the ban on export of live animals was conditionally lifted by the ECC on December 2, 2008. However, Pakistan Tanners Association (PTA) and Pakistan Leather Garments Manufacturers and Exporters Association (PLGMEA) criticised and protested the decision.
In the wake of devastating floods in July 2010, which killed about 1.5 million animals and subsequent to the demand of PTA and PLGMEA, Ministry of Commerce moved a summary to the ECC proposing imposition of ban on export of live animals, in order to avert possible shortage of meat, leather and other raw materials in the country. The proposal was also supported by the Ministry of Industries but was opposed by the ML&DD and Ministry of Food and Agriculture. Accordingly, the summary of Commerce Ministry was rejected by the ECC. With devolution of Ministry of ML&DD the subject of import/ export of live animals has been transferred to the Commerce Ministry.
The Deputy Animal Husbandry Commissioner issued a letter on May 16, 2011, extending the period of export of live animals till June 30, 2011. According to the Commerce Ministry, the letter was unauthorised, therefore, the letter was cancelled. This led to litigation against the Commerce Ministry and a few cases have been filed in the civil courts against the Ministry for cancellation of the unauthorised extension letter issued by the Deputy Animal Husbandry Commissioner. Commerce Ministry is now pursuing the cases.
A delegation of Pakistan Tanners Association held a meeting with the Additional Secretary (II) and Joint Secretary (Exports) of Commerce Ministry and registered their apprehension that continuation of the policy of export of live animals would lead to further shortage of leather and increase price of meat. ML&DD determined exportable surplus of 253,000 live animals for the period from May 15, 2010 to May 14, 2011 on the basis of human growth rate and animal growth rate.
A total number of 95,523 live animals were exported during 2010-11 (July-March). However, the said criterion for determining the exportable surplus of live animals is unclear and irrational. The procedure does not envisage a proper mechanism for export of surplus live animals that resulted in confusion among the exporters.
Furthermore, due to this vague procedure, Ministry of Commerce has received numerous complaints regarding smuggling of live animals to Afghanistan and Iran under the garb of export permissions issued by the erstwhile ML&DD. According to Pakistan Tanners Association, approximately 0.2 million live animals are being smuggled out of country on monthly basis.
An official statement issued by the Commerce Ministry, however, said that Senior Commerce Minister Makhdoom Amin Fahim has taken serious notice of hike in prices of meat and live animals. He stated that there were several other factors contributing to it, which include death of 1.5 million animals due to devastating floods of 2010 and animal smuggling to various neighbouring countries. He expressed his serious concerns over a huge increase in price of mutton from Rs 271 to Rs 406 and beef from Rs 154 per kg to Rs 241 per kg from 2008-09 and 2010-11, respectively.
Therefore, keeping in view the holy month of Ramadan and Eid-ul-Azha not being far away, the minister took this bold step and has imposed a ban for three months. He further stated that this would help in bridging the demand-supply gap and bring meat and animal prices down to bring prices within the reach of the poor. He also stressed on the need to control smuggling of meat and animals as well, the statement concluded.
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