20000109

Huge quantity

of corn perishes

because of inadequate

storage system

ARSHAD AWAN

KARACHI: A fairly large portion of the harvested corn was lost because of inadequate storage system, which raised toxicity levels to contaminate the crop, experts said.

"The country is badly in need of greater production, proper storage and grading of corn to fulfil its requirements," Usman Ali, agro-economist said.

Pakistan produces 1.2 million metric tonnes (MMT) of corn on an average every year in NWFP and Punjab, but this falls far short of the estimated requirement in the country for use in starch, poultry and livestock sector, which need more than 2 MMT, according to one official survey.

A researcher with the US Grain Council, said there was demand to import corn in the country for use as feed ingredient as suggested on every forum by the poultry and livestock sector both individually and through their associations.

"However because of 10 percent duty and 15 percent sales tax the imported product lands at values higher than substitutes available in the market," he said.

The major substitute in Pakistan is wheat, which is imported duty free as it is exclusively for human consumption.

It is estimated that almost 800,000 metric tonnes of wheat is being used as feed ingredient to fulfil the shortage of corn. During the on-season, broken rice is also substituted in feed which if exported would be an important forex earner for the country.

The experts were of the view that maize was always cheaper than wheat in the international market. They said, the removal of duty and sales tax should help attain increased and regular usage of corn as a high energy ingredient in feed produced and consumed by feed millers, livestock and poultry farmers.

The said corn import should help reduce the government forex bill for import of wheat and milk and other dairy by-products.