Category Archives: Corporate Agriculture

PLANT BREEDERS RIGHTS BILL: FARMERS AND SEED COMPANIES TO DEBATE BILL,GIVE INPUT

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By Peer Muhammad

The proposed law is targeted at achieving several goals such as encouraging plant breeders and seed organisations in the public and private sectors to invest in research. PHOTO: FILE

ISLAMABAD: In a bid to establish a viable seed industry, the government last month introduced the Plant Breeders Rights Bill 2015 in the National Assembly. The bill is aimed at ensuring availability of high-quality seeds and planting material to farmers.

All major stakeholders will give their opinion and input for inclusion in the bill in a meeting next week at the Ministry of National Food Security and Research. Later, the lower house will refer the bill to the standing committee concerned for deliberations.

The National Assembly Standing Committee on Cabinet Secretariat after discussing the bill decided on Monday to invite all relevant stakeholders including farmers, private seed companies and provincial government officials to the next meeting at the food ministry.

Plant breeder rights are specific intellectual property rights that are provided to the breeders of new varieties of plants. Apart from this, in order to comply with the World Trade Organisation or trade-related aspects of intellectual property rights (TRIPS) agreement, the government has already introduced several other laws to protect intellectual property.

The proposed law is targeted at achieving several goals such as encouraging plant breeders and seed organisations in the public and private sectors to invest in research and plant breeding, develop superior varieties of field, vegetable and ornamental crops and facilitate access to protected foreign varieties and new technologies.

Additionally, the bill will encourage healthy competition in seed variety development among public and private sector organisations, facilitate in generating revenues for research institutes, provide financial incentives for plant breeders and effectively control counterfeiting for the betterment of farmer community and ensuring food security.

At present, many foreign companies are not coming to Pakistan to invest in this industry due to lack of protection for their products in the absence of an effective plant breeder rights law.

Published in The Express Tribune, December 29th, 2015

.http://tribune.com.pk/story/1017797/plant-breeders-rights-bill-farmers-and-seed-companies-to-debate-bill-give-input/

WTO KILLS FARMERS

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Press Release

December 15, 2015

Pakistan Kissan Mazdoor Tehreek (PKMT) and Roots for Equity in collaboration with Asian Peasant Coalition (APC) carried out a protest outside Sukkur Press Club to register public resistance against the against the World Trade Organization (WTO) which is going to hold its 10th Ministerial Meeting December 15-18, 2015 in Nairobi.

The purpose of the WTO was to ensure control on global trade much of which is under the imperialist control of the advanced capitalist countries and their gigantic corporations. WTO’s Agreement on Agriculture (AoA) and TRIPS (Trade-related- Intellectual Property Rights) agreement are immensely exploitative of farmers across the world, especially small and landless farmers of third world countries. Agrochemical and biotechnology corporations especially the US corporations have been able to impose control over the rich genetic resources of the third world with the TRIPS agreement thereby paving the way for multinational companies to earn billions of dollars by patenting and trading hybrid and genetic seed, globally. On the other hand, farmers have not only lost their indigenous seeds but at the same time have become dependent on the inputs of agro-chemical corporations pushing them in a vicious cycle of high cost production, indebtedness, and loss of livelihood. Today a vast majority of the rural and urban population face hunger, and are living in acute poverty and misery.

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The imperialist neoliberal policies of privatization, deregulation and trade liberalization pushed by the WTO, the IMF and the World Bank have resulted in poisoned lands, food and the destruction of environment which has had not only a tremendous impact on the health of people, especially women and children but also resulting in climatic disasters. No doubt these policies are based on the lust for super profits of the capitalist system.

The 9th Bali Ministerial was a big setback for the anti-globalization movement because it allowed capitalist economies to fast track their exports through a Trade Facilitation Agreement (TFA). TFA enforces developing countries to implement systems that allow a fast and smooth transport and transaction of goods at the custom check posts of countries. Pakistan has ratified the TFA in October 2015 and has become the 50th country that has ratified this agreement.

What is to be expected from the upcoming tenth WTO Ministerial to be held in Nairobi, Kenya? There is no doubt that further trade liberalization and market access is on the books. There is news that US and its allies are ongoing negotiations for a new agreement in the WTO, the Trade in Services Agreement (TISA). According to Wiki leaks, this negotiation is still being kept a secret.  There is no doubt, that this new agreement will only lead to the further oppression and exploitation of small and landless farmers and workers.

Pakistan Kissan Mazdoor Tehreek (PKMT) rejects the WTO while holding it responsible for the destruction of lives and livelihood of small farmers, especially in the third world. PKMT demands the government that it should cancel its membership at the WTO and ask other governments to join hands in closing such an anti–farmer, anti-people organization. Such an action will break the imperialist stranglehold over Pakistan taking it towards a road of food and national sovereignty.

LAW TO PROTECT PLANT BREEDERS

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Dawn, Business & Finance weekly, December 7th, 2015

ASHFAK BOKHARI

WITH the introduction of the Plant Breeders’ Rights Bill 2015 in the National Assembly on November 27 by the Federal Minister for Inter-Provincial Coordination Riaz Hussain Pirzada, the country is close to meeting its obligations in the seed sector as required by the WTO’s Trips regime.

The Seed Amendment Bill 2014, another related legislation, has already been passed by the lower house and is awaiting a formal nod from the upper house to become a law. The two bills were originally moved in 2010 but were then put on the backburner.

After remaining frozen for four years, one bill, relating to seed business, was revived last year following the formation of the Intellectual Property Organisation (IPO-Pak) as a regulator of intellectual property rights (IPRs). The seed bill, an amended form of 1976 law, was re-launched as 2014 bill.

The plant breeders rights bill, which the NA Speaker immediately referred to the standing committee concerned, has been revived this year and re-launched as a 2015 bill. Pirzada had moved the bill in the house on behalf of the minister of state for parliamentary affairs.

The bill aims at establishing a viable seed industry for food security and ensuring the availability of high quality seeds and planting material to farmers.

How long it will take to become a law is anybody’s guess. Pakistan, being a member of the WTO, is required to provide protection to plant varieties under sui generis system under Article 27-3 (b) of the Trips law. The sui generis (unique) system for plant varieties must comply with the basic principles of national (equal) treatment.

The government has already adopted and enforced major IP laws such as patents, trademarks, copyrights and industrial designs. According to the stated objectives of the proposed law, the government will encourage plant breeders and seed organisations in both public and private sectors to invest in research and plant breeding; help breeders develop superior varieties of crops; provide access to protected foreign varieties and new technologies and effectively control the menace of counterfeit seeds.

Once the bill is passed, a registry of plant breeders’ rights will be established under the administrative control of IPO-Pak. The new law will effectively protect IPRs of the breeders which are described as a limited form of proprietary rights, which permit their holders to exclude others from producing and selling seeds of their plant varieties without legal authorisation.

The holder will charge royalty on the sale of seeds of his variety and will have the right to initiate civil proceedings against the persons found infringing his rights. Such protection may encourage foreign firms to invest in plant breeding in Pakistan.

Agriculture, including seed business, became a provincial subject after the passage of the 18th Amendment in the constitution in 2010. But, according to federal minister for food security Sikandar Hayat Bosan, all the provincial assemblies had passed a special resolution authorising the federal government to amend the Seed Act of 1976 and retain it as a federal subject.

During the long journey the two bills traversed, the basic reforms suggested in their drafts had been the focus of intense debate in the NA standing committee discussions, among civil society groups, farmers bodies and other stakeholders.

That the draft of new seed law tends to invite foreign private sector to effectively take part in the country’s seed development is evident from Bosan’s statement attached with the text of the law. The 1976 law, he says, had failed to fulfill the requirements of a ‘modern seed industry’ for the capacity of the public sector has, over the years, greatly declined.

Today, he says, “it is the private sector which is playing a stronger and more vibrant role across the world. The new innovations in hybrid technology and genetically modified crops have transformed the seed industry.” The new law will also allow the private sector “to produce basic seed for its multiplication and certification” and establish seed testing laboratories.

The bill permits registration of GM crops provided no terminator technology is involved in the development of seed variety.

What has offended the farmers’ community in particular is preventing them from carrying on age-old practice of re-using the saved seeds for next crop. They will have to buy seeds for each crop from the companies at a higher cost. This is unaffordable for small farmers, at least, and soon they may have to quit the farming.

The foreign office’s opposition to GM seeds is a significant matter as conveyed by Environmental Protection Agency’s chief during the proceedings of a public interest petition in Lahore High Court. While appearing on behalf of the federation on May 14, 2014, he said: “the Foreign Office has also conveyed its concern to the Climate Change Division that the subject of GM seeds is a matter of grave concern for national security and trade. It can be used as a biological weapon of mass destruction to destroy Pakistan’s major crops such as potato, wheat, rice, corn, cotton and vegetables through modified viruses, bacteria and other parasites.”

http://www.dawn.com/news/1224587/law-to-protect-plant-breeders

Cotton crop disaster: opportunity for global seed corporations

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AZRA TALAT SAYEED

NEWSPAPERS have been rife with reports about a pink bollworm attack on the cotton crop this year. The scenario is indeed disastrous on many accounts.

Of course, the very first thing to be destroyed is the livelihood of the country’s millions of small farmers.

With cotton being a major cash crop, millions rely on its harvest for a sizable portion of their income. In fact, they go heavily into debt to not only buy the cotton seed but also expensive inputs like fertilisers and multiple pesticides that are sprayed on cotton. Without these, the seed cannot yield a good harvest.

According to small farmers from Multan and Sahiwal, nearly 90pc of the cotton crop has been destroyed. For farmers in Multan who sowed on leased land, the per-acre loss is approximately Rs40,000. And the loss for those who have their own land runs to about Rs20,000.

Another critical point is the amount of pesticides that have been used on the cotton crop this year. A newspaper advisory from the government mentions the ‘correct’ use of pesticides that farmers should be applying on the beleaguered cotton crop. This is indeed ironic, as one major selling point of Bt cotton is its ability to ward off pest attacks. But the attack of pink bollworms this year has at least put this claim to rest.

There are farmers who also feel that the crop’s failure will be beneficial for the gigantic seed corporations that thrive on their expensive patented seeds.

According to a farmer from the Pakistan Kissan Mazdoor Tehreek, this could be a golden opportunity to push farmers to switch from cotton to corn. Corn is used for making ethanol. Pioneer, an American company, has also been promoting the use of certain branded corn varieties that are used for animal feed.

The animal dung from animals fed these corn varieties yield higher urea content and is considered a good source of biogas. But one has to yet see whether the patented hybrid corn seeds will turn out to be a boon or bane for Pakistan’s agriculture sector.

What is the cost of these branded seeds? Hybrid corn seeds of Pioneer, Syngenta and Monsanto are priced at Rs5,500-6,000 per 10kg; it takes about 10kg of seeds for per-acre sowing. The ‘beauty’ of these seeds is that none of them give seed for next year’s cultivation. Hence, the farmers have to buy new batches of seed every year.

That is the crux of the matter for the agro-chemical and biotechnology firms. No doubt, the ‘commodification’ of natural resources is a key strategy of market-driven forces.

At the moment, all cotton seeds in the market are being sold without trademarks. The price of 1kg of cotton can vary from Rs300 to Rs1,500. If women sow seed by hand, then at least 3kg is needed; if seed drills are used, then 5-8kg is required.

So if patented cotton seed, particularly the genetically modified Bt variety, is introduced next year (a major reason for the passing of the Amended Seed Act 2015), then there is no doubt that seed prices will jump.

The cotton crop’s failure this year can be exactly the kind of situation that benefits multinational corporations: it will now be argued that substandard seed is the cause of the current catastrophe.

However, it needs to be pointed out that Bt cotton has suffered a similar fate in India, where this seed is heavily protected under patents. The Nagpur-based Central Institute for Cotton Research has confirmed the pink bollworm’s resistance to Monsanto’s second generation biotechnology protection Bollgard-II in some parts of Indian Gujarat.

Meanwhile, our textile industry will face a further setback when it is unable to find cotton for local production. According to some newspapers, the All Pakistan Textile Manufacturers Association and the Pakistan Cotton Ginners’ Association are advocating for the import of Bt cotton seeds supported by Monsanto.

At the same time, Pakistan is increasing its sugarcane harvest to produce more ethanol. According to the OECD-FAO Agricultural Outlook, Pakistan increased its ethanol production from 97.2m litres in 2004 to 321.8m litres in 2014.

Based on media reports, much of the ethanol in the country is being sent to Europe. Do our farmers want to be energy suppliers to the oil-guzzling vehicle industry in the northern hemisphere? What about food for our own people?

azra.sayeed@gmail.com

Published in Dawn, Business & Finance weekly, November 23rd, 2015

National food security policy on its way: Bosan

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ISLAMABAD: The national food security policy is being finalised and would be announced after complete consensus, said Minister for National Food Security and Research Sikandar Hayat Bosan.
“We have uploaded the draft on the official website of the ministry for comments and suggestions from the members of parliament and other stakeholders,” he said. The policy would be submitted to the federal cabinet for final approval before its announcement.
He said the National Food Security Council is also being set up, to be headed by the Prime Minister, to further boost the agriculture sector. The council would help resolve issues between the federal and provincial governments, pertaining to agriculture after the 18th Amendment.
“The ministry would also present the Plant Breeders Rights Bill during the upcoming session of the National Assembly, which would revolutionise the agriculture sector within three years,” said Bosan, adding the protection of breeders’ rights would build up confidence among local and foreign breeders and attract investment in the sector.
“Our government to give relief to farmers has announced a ‘Kissan Relief Package worth Rs341 billion, which is a short-term measure to prepare farmers to cultivate the next crop. Under the package, rice and cotton growers having 12.5 acres or less land would be provided Rs5,000 per acre support.”
“We have also tried to reduce the input cost by relieving duties on pesticides and fertilisers,” he added.
Published in The Express Tribune, November 21th, 2015.

http://tribune.com.pk/story/995603/agriculture-national-food-security-policy-on-its-way-bosan/

Punjab declares 10-year wheat seed replacement plan

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LAHORE: The Punjab on Thursday declared its massive wheat seed replacement plan, spanning a decade, to multiply it’s per acre yield by almost three times — from current just under 30 maunds up to 80 maunds.

According to departmental statistics, it has already transported over 70,000 bags and the rest 30,000 bags would be transported in next two to three days, covering all 23,800 villages in the province, and meeting the most propitious sowing deadline of Nov 30.

The seed replacement programme was necessitated as almost all seed varieties currently under usage, which cover 80 per cent of 17.20 million acres, have become susceptible to a variety of diseases, like rust.

According to Punjab Agriculture Minister Farrukh Javed, these 100,000 bags would be sufficient to produce five million bags of seed, which would replace the current seed.

The Punjab plans to take per acre yield to 100 maunds, and the programme is an effort in this regard, he said and added: “The Punjab has spared Rs300 million for the project this year, out of which Rs240 million have gone for seed procurement.”

Envisages three times rise in per acre yield
Under the programme, one progressive farmer in each village would get four bags of seed for free, and would sell multiplied seed in his village from next year.

The department has prepared a data base of around 200,000 progressive farmers for the purpose and 23,800 of them would get four bags each this year. Next year, these farmers would be replaced with another 23,800, and the department hopes to replace the entire seed in next 10 years.

The framers, while praising the move, suggest that instead of providing four bags in each village, the distribution should be linked to acreage in every village. “It would be much more efficient way of seed replacement,” says Muhammad Azam of Narowal district.

There are 811 villages in the Faisalabad district and more than 1,200 in Narowal, but the cropping area in the Faisalabad district is 755,000 acres, whereas it is 400,000 acres in Narowal. Thus the seed requirements of both differ widely, which should be factored in.

The current distribution plan averages out at 165 acres per bag. There are districts like Faisalabad where seed requirement is much more than other districts.

If the Punjab government adjusts its distribution plan according to the acreage, its replacement plan could be shortened to less than 10 years and it is better advised to reconsider the distribution pattern, he said.

“But apart from re-calculating the requirement, the seed replacement plan could, and should, only be welcomed, as it has been long overdue,” says Naeem Hotiana of Pakpattan.

Almost entire range of seeds have become susceptible to diseases and needed to be replaced in the last decade or so. “It is a case of proverbial better late than never.”

He said if the province can triple its yield, as being claimed by the minister, it could easily spare huge acreage for diversification for other crops like vegetable and pulses.

Published in Dawn, November 14th, 2015

http://www.dawn.com/news/1219571/punjab-declares-10-year-wheat-seed-replacement-plan

‘Seedy’ Business

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ZUBEIDA MUSTAFA
www.zubeidamustafa.com

COTTON growers in southern Punjab are facing a serious crisis. Their crop production has shrunk drastically. The reasons stated, among others, are poor quality seeds and severe pest attack.

These factors can be addressed, provided the will exists. Poor seeds and pest attacks that are interconnected have a causal link with the rapid spread of genetically modified organisms (GMO) that have begun to shake public confidence the world over.

The tide is now turning as demonstrations have been held against GMOs, which shot to fame when they were promoted as the miracle seed to eliminate hunger. But the fact is that hybrid plants in which genomes from different species are mixed are too new and untested a technology to win universal acceptance.

Hybrid plants are too untested a technology to win universal acceptance.
Awareness is growing and people have begun to question the wisdom of genetic modification of seeds to increase agricultural production and pre-empt pest attacks. WHO has also cast doubts on health-related issues linked to GMOs. Many countries have banned their cultivation.

Pakistan has a different story. The GM seed producing biotech multinationals in the country appear to be doing well. Pakistan’s agriculture faces an existential threat as the GMO seeds being used widely in cotton plantation have not been tested rigorously in local conditions. Their impact is not fully understood.

This makes our economy very vulnerable as nearly 70pc of the population depends on agriculture for its livelihood with cotton occupying a pivotal place. It constitutes 10pc of the GDP, while cotton exports account for 55pc of the country’s foreign exchange earnings.

Pakistan’s GMO story is a relatively new one. Yet we failed to learn from the terrible experience of others who jumped onto the GMO bandwagon before us. Bt cotton seeds were smuggled into Pakistan in 2005. In the absence of a legal regulatory framework for the transfer and use of genetically modified seeds in the country, this was risky business especially in light of the earlier news of peasant suicides in India.

The authorities proceeded to approve Bt cotton for planting in Pakistan in 2010. By the government’s own admission — the illegality of the process notwithstanding — by then the GM brand of cotton was covering 60pc of Pakistan’s cotton acreage. Today, that figure is said to be 85 pc. Matters have now taken a serious turn. Ignoring the advice of experts for strong regulatory oversight, the government took up in 2014 24 pending applications for commercial licences for Bt cotton and genetically modified corn.

It appears to be going all out to accommodate the seed manufacturers that included biotech multinationals. A court battle has, meanwhile, ensued that has acted somewhat as a dampener, and no new licences have been issued recently. But Bt has penetrated the seed sector in a big way.

Ground-breaking research on GMOs by Tahir Hasnain, an agriculture expert, should explode many myths. He writes that cultivating Bt cotton is more expensive. The price of seeds is higher and the greater need for fertiliser, water and pesticides pushes up the costs. Ironically, new pests have emerged as the genetically modified varieties of cotton that have a low expression of the required toxins make the bugs resistant to them. GM was supposed to minimise pest attacks. Now the sale of pesticide manufactured by the same biotech companies has shot up.

A new phenomenon which could have grim repercussions is the shift to cash crops away from food that is beginning to take place on account of different harvesting seasons of GMOs leaving no time for wheat sowing. In 2014-15, wheat production declined in Pakistan. Mean­while, cotton has failed to reach the production level it had achieved in 2004, before the advent of the age of Bt.

The government is protecting the interests of the biotech multinationals whose financially underpinned ‘lobbying’ powers match the capacity of our policymakers to accept ‘favours’. The parliamentarians have been no different and have adopted a bill amending the Seeds Act, 1976, to “improve the existing law so as to enable it to meet the requirements of the modern seed industry”.

Pressure for change comes from the US which wants Pakistan to meet its ‘obligations’ under WTO regulations and create a larger market for the private seed producers. Previously, seed manufacturing was primarily in the public sector, The amended law now opens the door to giant biotech companies to enter the Pakistan seed market.

Since much of the criticism focuses on the absence of research and tests on the Bt cotton seeds in local conditions, in 2011 the US paid $5.5 million to Pakistani agricultural institutes to do research on Bt cotton. Unsurprisingly, this has produced no results.

Bt cotton is a good example of how corporate domination is secured by circumventing weak regulatory mechanisms and manipulating the corrupt ruling classes who are co-opted as lobbyists to pave the way for corporate goals.

Published in Dawn, November 13th, 2015

http://www.dawn.com/news/1219280/seedy-business

Capitalist Agriculture caused Hunger

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October 16, 2015

World Hunger Day (Press Release)

The UN’s Food and Agriculture Organization (FAO) has been celebrating 16 October as World Food Day from the past 70 years. This year it’s slogan for the World Food Day is “Agriculture and Social Security.”

Pakistan Kissan Mazdoor Tehreek (PKMT) and Roots for Equity along with other farmer movements and organizations like the Asian Peasant Collision (APC) and Pesticides Action Network (PAN AP) observers the World Food Day as World Hunger day. Even today, 60% of Pakistani population does not have food security, whereas 50% women suffer from anemia. In Pakistan 35% of small children die from malnutrition, and 50% of children less than 5 years suffer from stunting.

For the World Hunger Day, PKMT had organized a protest in front of the TMA Hall, Haripur, Khyber Pakhtunkwa. Various PKMT leaders including Raja Mujeeb, Tariq Mahmood, Fayaz Ahmed, Altaf Hussain and Wali Haider spoke against the prevailing hunger in the country. It is a bitter truth that in an agricultural country like Pakistan, farmers are facing hunger because more than 70 percent of them are landless. Landlessness and exploitation of farmers is entrenched in the semi-feudal structure of the economy and encroaching capitalist policies.  Land grabbing through government support for corporate agriculture is increasing across the country.

Climate change is also a critical reason behind increasing hunger and food insecurity. The carbon emissions from industrial production in capitalist economies are a prime reason for Pakistan being one of the most vulnerable countries impacted from climate change. In the previous years, farmers have been facing debilitating economic loss due to yearly floods causing destruction of crops and loss of livestock. Tharparkar is facing acute drought that has killed thousands of children and livestock. Almost 40 percent of the population has had to move in search of food and livelihood.

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The elitist Pakistani government in collusion with International organizations, first world governments and the hegemonic international corporate sector are promoting trade liberalization. An example is the approval of the Seed Amendment Act 2015 that protects the interests of the agro-chemical corporations and allows the spread of genetically modified seeds in the country. The approval of this draconian law will take away the right of farmers to save and develop seeds: in this scenario how can they ensure food security in the country? Neoliberal policies have already pushed small and landless farmers into debt making them dependent on agro-chemical corporations.  The increased production prices have pushed many farmers to migrate in search of other livelihood.

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Pakistan is being forced to accept alternate fuel technologies. These include agro fuel crops such as sugar cane and maize; large tracts of land are being used for installation of solar and wind energy projects. All of this will lead to further shortage of land and food and can only exacerbate hunger!

Pakistan Kissan Mazdoor Tehreek and Roots for Equity demand an end to Feudalism and Corporate Farming. In order to attain food sovereignty and sustainable agriculture it is critically important that equitable distribution of land amongst small and landless farmers is carried out. In addition, all decision making and implementation of agriculture policies must be in the hands of small and landless farmers!

PKMT and Roots also hold a protest in front of Sukkur Press club, Sindh on the eve of World Hunger Day on 16th October, 2015. PKMT leaders Ali Gohar, Ali Nawaz, Hakim Gul, Mohammd Azim, Gul Hassan spoken to the protest and highlighted the issue of small and landless farmers in Sindh. They demanded Genuine Agrarian Reforms and also rejected the recently passed Seed Amended Bill 2015.

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Released by: Pakistan Kissan Mazdoor Tehreek and Roots for Equity

GOOD NEWS?

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Engro fertilizers has published this advertisement in the Urdu Daily “Roznama Jang” on October 21, 2015. It declares the following: “Good News: A subsidy has been announced on fertilizers.”

jang 21 octEngro declares that it is are very thankful to the Prime Minister Mian  Mohammad Nawaz Sharif and the Federal Minister for National Food Security and Research Mr Sikander Hyat Bosan for announcing a subsidy on fertilizers. This step will result in prosperity for all farmers in the country.

The advertisement read: “ We are announcing that because of the subsidy the cost of various Engro fertilizers will be reduced.” The advertisement then provides a list of six engro products with their reduced price list.  However, the list only provides a reduction amount, for example that DAP will now be sold at Rs 500 less for each bag. The original cost of the DAP bag is missing. Hence the corporation can easily raise the price and then declare a subsidy – otherwise why did this advertisement not provide the cost per bag – which would make it easy for farmers at the retail stores to demand a particular price for the products.

It quite clear that this package is hoodwinking not only the farmers but the entire nation. The subsidy will only be truly beneficial to the big land lords and of course Engro itself. According to the news in The Express Tribune 23 September 15, the subsidy is given directly to the fertilizer companies and they will set the price according to the subsidy given to them. So, the subsidy ensures that Engro retains its high profit margin – which for the last three-months profits ending June 2015 was declared to be Rs.4.05 billion after taxes – or an increase in profits by 109%.

The small farmer will lose on many accounts: First, even after the subsidy the cost is astronomicalfor purchasing various chemical fertilizers including urea and DAP. In addition, pesticides, hybrid seeds, tube well charges, diesel are all very expensive for the small and landless farmers. So, this chemically-intensive farming methods will only lead to massive debts for farmers which has been the pattern now for many many years. Second, this chemical intensive agriculture production is extremely hazardous for the environment: leading to contamination of our farmlands, water sources, livestock, and the entire food chain. The productivity and fertility of our lands are decreasing day by day. Third: the impact of fertilizers and pesticides is extremely harmful to the health of the communities across the nation, whether urban or rural.

So, no doubt the subsidy is for the rich and powerful!