Pesticides production can avert agro-chemicals shortage

06 May, 2004

Local production of pesticides can help avert the kind of agro-chemicals shortage that hit Pakistan's cotton crop last year.
"Lack of facilities for basic and intermediate manufacture of pesticides has led to total dependence on imports," said Pakistan Crop Protection Association (PCPA) Chairman, Ijaz Ahmad Chaudhry here on Wednesday.
The total volume of the pesticide market in Pakistan presently stood at US 250 million dollar (Rs 15 billion), a significant market in regional perspective.
Talking to newsman, Ijaz Ahmad said that the shortage problem could not be overcome, particularly in cases of unusual surges of pests without developing an adequate production and formulation capability in the country.
Responding to a question, he said that although importers had placed orders with foreign companies for pesticides in much higher quantities than those ordered the previous year, the import-based supply system could at best only meet the usual requirements.
It was not possible, he warned, to import and stock pesticides for unusual pest attacks caused by weather fluctuations and other unpredictable factors.
Talking about China and India, Pakistan's major competitors in the international textile markets, the PCPA chief said that local and international companies had invested in the manufacture of pesticides as those countries provided advantages of tariff protection for a period of 10 to 20 years.
He suggested that a duty advantage of 20 percent should be allowed for local manufacture in line with the pharmaceutical policy, besides providing exemption of sales tax on import of chemicals, used in the basic and semi-basic production of pesticides.
He urged the government to announce an incentive package for the local pesticides industry in the coming budget.

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