Proforma-II GOVERNMENT OF KHYBER PAKHTUNKHWA PLANNING & DEVELOPMENT DEPARTMENT Project Concept Form for New Initiative

1. Local Cost Foreign -Exp. Upto Jun 11 -Allocation for 2011-12 Local Foreign Rev Total 8.976 8.976 -TF Beyond 2011-12 30.976

Cap --

39.952

1. Title of the Proposed Project:

Establishment of Govt. Seed Farm in Jarma Kohat, swapping the Barani Agri. Farm Hangu. 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 Pakistans 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, and the size of wheat stocks procured positively affect the area under wheat production and level
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2. Proponent Information.

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 casse 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. It was learnt that state land is available in Kohat District which is adjacent to Hangu and safer than the Hangu. So the proposal is being submitted to be honoured and a piece of 100 acres land should be mutated to Agriculture Department swapping the Govt. Seed Farm Hangu so the state land lying untouched / un-utilized may be brought

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for establishment of government seed farm. 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 Rs. 39.952 million are required to be provided under ADP. Detail costs involved are annexed with the proposal. District Kohat/Adjacent Districts i.e. Hangu and Karak.

4. Rational for ADP Funding.

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

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. 6. Is Project aligned with CDS? 7. Nearest place where similar facility is available. Yes. As mentioned above, the Government Seed Farm Hangu would be swapped and the proposed farm is likely to be established in adjacent district of Kohat. Financial Facing of the project is as under:

8. Financial Phasing

Particulars 2011-12 2012-13 2013-14 2014-15 2015-16 Total Establishment Charges Pay of Farm Manager @ Rs. 45000/540,000 567,000 595,350 625,118 656,373 2,983,841 month Pay of Agriculture Inspector @ Rs. 15000/180,000 189,000 198,450 208,373 218,791 994,614 p.m Pay of one Storekeeper/Acct. Clerk @ 180,000 189,000 198,450 208,373 218,791 994,614 15000/- p.m. Pay of 2 Field Assistants @ Rs. 15000/360,000 378,000 396,900 416,745 437,582 1,989,227 p.m 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. 7000/252,000 264,600 277,830 291,722 306,308 1,392,459 p.m 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 Office/Store/Chowkidar 12,000,000 - 12,000,000 Qtr 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

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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Crop

Area to Expected Total be sown yield Expedted (Acres) (maund/ product acre) (M.Tonnes)

Area to be benefited with produce (Acres)

Income to be derieved from the produced (Million)

Rs. Rs. Rs. 2.69 0.60 0.81

Wheat Maize Paddy

60 30 67.18 1679.59 20 20 14.93 933.11 20 31 23.14 2314.10 Total / annum gross income to be derieved)

Rs.

4.09

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. Normal

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

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Annexure A

PROVINCE WISE AREA OF WHEAT CROP

(Area '000' Acres)
Year
2004-05 2005-06 2006-07 2007-08 2008-09

Punjab 15762.9 16021.13 15896.09 15819.98 16892.93

Sindh 2192.85 2306.03 2427.11 2446.14 2548.69

Khyber P.K. 1849.87 1782.4 1863.95 1846.9 1901.51

Balochistan 847.83 766.04 1010.43 1014.39 1010.43

Pakistan 20653.45 20875.6 21197.59 21127.41 22353.57

%age share of KPK

9.0% 8.5% 8.8% 8.7% 8.5%

Source: Agricultural Statistics of Pakistan.

PROVINCE WISE PRODUCTION OF WHEAT CROP

Production '000' Tonnes)
Year
2004-05 2005-06 2006-07 2007-08 2008-09

Punjab 17375 16776 17853 15607 18420

Sindh 2508.6 2750.3 3409.2 3411.4 3540.2

Khyber P.K. 1091.1 1100.6 1160.4 1071.8 1204.5

Balochistan 637.6 649.9 872.1 868.6 868.2

Pakistan
21612.3 21276.8 23294.7 20958.8 24032.9

%age Share of KPK

5.05% 5.17% 4.98% 5.11% 5.01%

Source: Agricultural Statistics of Pakistan.

Demand of Wheat / Human Consumption in Khyber Pakhtunkhwa

Year District/Agency Population (Million) Per capita consump tion (Kgs) 24.647 124 4.119 28.766 Wheat Wheat Requiremen Production ts (M.Tonnes) (M.Tonnes) 3566984 1152470 Available for Human consumption (90% of the produce) 1037223 Difficiency (M.Tonnes)

2009-10 Settled Districts FATA Total:

2529761

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SEED REQUIREMENTS OF KHYBER PAKHTUNKHWA & PUBLIC SECTOR TARGET AND PROJECT SHARE IN THE DEMAND OF SEEDS.
Sr. No. Particultures 1 Total Seed Requirements (M.Tonnes) 2 20% Seed Requirement have to be provided by public sector (M.Tonnes) 3 Project Share (M.Tonnes) 4 %age Share of Public Sector in Seed Supply over the due share of 20% demand. Wheat Maize Padday 93713.17 16683.9 1329.37 18742.63 3336.78 265.874

67.18
0.36%

14.93
0.45%

23.14
8.70%

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

a. Wheat Crop Sr. No. Input 1 Seed 2 DAP 3 Urea 4 Weedicides application 5 Ploughing & Seeding (5 tractor hrs)

Unit Qty Unit Cost Total Amount Kgs 50 Rs. 40.00 Rs. 2,000.00 bag 1 Rs. 3,400.00 Rs. 3,400.00 bag 1 Rs. 1,000.00 Rs. 1,000.00 No. 1 Rs. 1,000.00 Rs. 1,000.00 Lit/hr 25 Rs. 80.00 Rs. 2,000.00 Total : Rs. 9,400.00

b. Maize Sr. No. Input 1 Seed 2 DAP 3 Urea 4 Pest./Weedicides application 5 Ploughing & Seeding (5 tractor hrs)

Unit Qty Unit Cost Total Amount Kgs 16 Rs. 40.00 Rs. 640.00 bag 1 Rs. 3,400.00 Rs. 3,400.00 bag 1 Rs. 1,000.00 Rs. 1,000.00 No. 2 Rs. 800.00 Rs. 1,600.00 Lit/hr 25 Rs. 80.00 Rs. 2,000.00 Total : Rs. 8,640.00

c. Paddy Crop Sr. No. Input 1 Seed 2 DAP 3 Urea 4 Zinc 5 Weedicides application 6 Ploughing & Seeding (4 tractor hrs)

Unit Qty Unit Cost Total Amount Kgs 10 Rs. 40.00 Rs. 400.00 bag 1 Rs. 3,400.00 Rs. 3,400.00 bag 1 Rs. 1,000.00 Rs. 1,000.00 Kgs 5 Rs. 80.00 Rs. 400.00 No. 1 Rs. 1,000.00 Rs. 1,000.00 Lit/hr 20 Rs. 80.00 Rs. 1,600.00 Total : Rs. 7,800.00

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Annexure B

Total Input Cost of Crops for the Project Period

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

Area under Crop (in Acres)

Area under Crop (in Acres)

Area under Crop (in Acres)

Total Cost of Inputs (Rs.)

Total Cost of Inputs (Rs.)

1 2 3 4 5

2011-12 2012-13 2013-14 2014-15 2015-16

60 60 60 60 60

9,400 10,810 12,432 14,296 16,441

564,000 648,600 745,890 857,774 986,440 3,802,703

20 20 20 20 20

8,640 9,936 11,426 13,140 15,111

172,800 198,720 228,528 262,807 302,228 1,165,083

20 20 20 20 20 100

7,800 8,970 10,316 11,863 13,642 -

Total Cost of Inputs (Rs.)

156,000 179,400 206,310 237,257 272,845 1,051,811

Per Acre Cost (Rs.)

Per Acre Cost (Rs.)

Per Acre Cost (Rs.)

Sr. No.

892,800 1,026,720 1,180,728 1,357,837 1,561,513 6,019,598

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Annexure C Annual Indirect Income from the Project

S.No. Name of Crop Area to be benefited from the produce of the farm (Acres) 1679.589 933.105 2314.100 Per unit yield (maund/ acre) Total production (mill tonnes) Expected Income From the Yield (in Mill Rs.)

1 2 3

Wheat Maize Paddy

30.00 20.00 31.00

50387.670 18662.100 71737.112

45.35 22.39 43.04

Total :

110.79

Annexure D Itemized Cost of the Project

Area (Acres) Land Reclamation/Levelling 100 Tractor hrs/acre POL POL Consump. Rate/ litre Lit. p/hr 15 6 Rs. Amount Required

80.00 80.00

Rs. Rs. Rs. Rs.

720,000.00 160,000.00 600,000.00 96,000.00

Land Development 80 5 5 Rs. Daily Paid Labour to be engaged. 2 Lab/Acre/Day for 15 Days @ Rs. 250/- p.day POL for Ploughing Linning of water channels Lining PCPs Purchase of Tractors Tractor 85 Hp Cultivator Unit 1 Unit 1 80 Meters 1,000 3 5 Rs. Rate/unit Rs. Rate/unit Rs. Rate/unit Rs.

80.00

Amount Required 1,500.00 Rs. 1,500,000.00

Amount Required 800,000.00 Rs. 800,000.00

Amount Required 50,000.00 Rs. 50,000.00

Fertilizer & Seed Placement Drill

Unit 1

Rate/unit Rs. 80,000.00

Amount Required Rs. 80,000.00

Disk Plough

Unit 1
Unit 1

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

Rate/unit Rs. Rs. Rs. 225,000.00 300,000.00 Rs. 500,000 10,000.00 Amount Required Rs. Rs. Rs. Rs. 225,000.00 300,000.00 500,000.00 50,000.00

Wheat Thresher

Tractor Trolly (Hydrolic) Wheat Bhoosa Chopper Nursery Tools/Budding Grafting Kit

1 1 5

Tube Well Construction

Rs. 1,000,000

Rs.

1,000,000.00

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Annexure E
LAND UTILIZATION STATISTICS
(Area in million hectares)

Year/Province

1 Total Punjab(R) Sindh Khyber Pakhtunkhwa Balochistan %age of KPK

Geograp Total area Forest hical reported area area col.(4+5+6+7) 2 3 4 79.61 20.63 14.09 10.17 34.72 12.8% 57.06 17.48 14.09 8.34 17.15 14.6% 4.21 0.49 1.03 1.33 1.36 31.6%

Not Culturabl Cultivated Current Available for e area fallow cultivation waste col. (8+9) 5 6 7 8 23.43 2.97 6.74 3.89 9.83 16.6% 8.22 1.6 1.44 1.21 3.97 14.7% 21.2 12.42 4.88 1.91 1.99 9.0% 4.98 1.44 2.01 0.61 0.92 12.2%

Net area Area sown sown more than once 9 10 16.22 10.98 2.87 1.3 1.07 8.0% 7.41 5.75 1.01 0.57 0.08 7.7%

Total Agriculture Arable cropped area land land col.(9+10) (13+14) (6+7) 11 12 13 23.63 16.73 3.88 1.87 1.15 7.9% 33.63 14.51 7.35 4.45 7.32 13.2% 29.42 14.02 6.32 3.12 5.96 10.6%

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Annexure F 5 Years Cost Summary

Particulars 2011-12 2012-13 2013-14 2014-15 2015-16 Total Establishment Charges Pay of Farm Manager @ Rs. 45000/540,000 567,000 595,350 625,118 656,373 2,983,841 month Pay of Agriculture Inspector @ Rs. 15000/180,000 189,000 198,450 208,373 218,791 994,614 p.m Pay of one Storekeeper/Acct. Clerk @ 180,000 189,000 198,450 208,373 218,791 994,614 15000/- p.m. Pay of 2 Field Assistants @ Rs. 15000/360,000 378,000 396,900 416,745 437,582 1,989,227 p.m 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. 7000/252,000 264,600 277,830 291,722 306,308 1,392,459 p.m 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 Office/Store/Chowkidar 12,000,000 - 12,000,000 Qtr 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

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