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Rs 3.6 billion dairy uplift plan being launched

* Several incentives for dairy sector in budget
* Govt has taken several measures for development of agriculture
* To give Rs 12.3b subsidy on fertilisers in next fiscal

By Sajid Chaudhry

ISLAMABAD: The budgetary measures announced on the agriculture sides would increase the income of farmers and would also help develop this important sector of the economy on modern lines.

The First Public Private Sector Partnership programme for the dairy sector development with Rs 3.6 billion is being launched. A company would be set up for this purpose that will establish 1,200 model dairy farms and will also establish 2,950 farms to raise livestock. This project will enhance rural income.

A programme at a cost of Rs 7.6 billion is being introduced to increase the income of framers in 13, 000 villages. The programme will start from 1,000 villages in the next fiscal year 2006-07 that will create job opportunities in rural areas.

A government official informed that the production of dairy products is now exempt from sales tax and the dairy and livestock equipment are exempt from customs duty and sales tax. Customs duty on packing material of dairy products has been reduced to 5% and this will help promote the dairy sector in the rural areas as well as promote value addition in rural economy.

The duty-free imports allowed to the dairy sector are pure breeding animals: bulls, pure breeding animals: oxen, bovine semen, milk evaporator, tubular heat exchanger (for pasteurization), cream separators, homogenizer, milk processing plant, milk spray drying plant, milk UHT plant and Milko scans.

Packaging industries include packaging for diary & juice industry: aluminum foil, aluminum foil plain (in rolls of 6.3 micron thickness), aluminum foil, folding carton bleached kraft paper (3mN/70 gsm), clay coated board (80mN/ 190gms, 150mN/226 gsm, 260mN/268gsm). A reduced rate of 5% customs duty would be charged on import of plyester film laminating adhesives rosins (fortified).

The government is set to introduce drip irrigation and sprinkle technology in agriculture with an estimated allocation of Rs 15 billion. This measure would not only save water in the agriculture sector, but would also promote efficient use of this precious asset of the country.

The government has spent Rs seven billion on lining of canals during the outgoing fiscal year 2005-06 and Rs six billion will be spent in the next fiscal year 2006-07 on the same project. As a result, loss of canal water will be reduced by 25%. Rs 5.5 billion will be spent on Katchi Canal during the next fiscal year 2006-07, a project of Rs 22 billion will help promote agriculture and on-farm job opportunities in Balochistan.

The government provided Rs five billion subsidy on fertilizer in 2005-06 and in the fiscal year 2006-07 Rs 12.3 billion would be provided as subsidy to keep fertilizer affordable for farmers.

To enhance the agriculture productivity, the government will launch National Agriculture Research Programme with an allocation of Rs 2.5 billion in the next fiscal year 2006-07. The machinery for agriculture, horticulture and floriculture is exempt from customs duty. The import of machinery for promotion of the fisheries sector is also exempt from customs duty. Customs duty has been reduced from 60% to 30% on the import of refrigerated vans for transport of perishable items to markets as well as for exports.

The exemption from customs duty on the import of new and used agriculture tractors in Completely Build Units has been allowed. This decision would help farmers to have quick availability of tractors at reasonable price for their farming activities across the country. They will not have to wait for years to get tractor manufactured locally.

The Special Incentive Package for Poultry Industry would help revive this important sector of rural economy and will increase the capability of the sector to enhance production and fight the threat of bird flu. The duty-free import of Vitamin A, Vitamin B1, Vitamin B2, Vitamin B3/B5Vitamin B6Vitamin B12Vitamin CVitamin Eother.

VitaminsLysineCholineMethionineZinc SulphateCopper SulphateFerrous Sulphate. Choline Chloride (feed grade). Vitamin B12 (feed grade). Vitamin H2 (Biotin) (feed grade) has been allowed. Duty-free import of soyabean meal, poultry feed preparation (coccidiostats), poultry vaccines has also been allowed.

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