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Pesticides Import Complexity

I WANT to draw your kind attention towards the following difficulties being faced by importers of pesticides under the cover of new Pesticide Policy being implemented for the year 2004-2005.

1- This ultimate major change will result in shortage and high rates of Pesticides; grower will have to suffer during coming season. The rates of Pesticides have gone very high in China who is the largest Exporter of Pesticide in world. The main reason for it is shortage of Zailin (Carrier of Pesticide) and Phosphorus in World.

2- The other reason is due to much delay in issuance of new registration certificate of Pesticides with Plant Protection department, Karachi.

3- The condition of packaging of Pesticide by Importers himself on his own plant equipped with laboratory. The Importers are hesitating to import the Pesticides because at present only two Laboratories are available with local formulating. Pesticide Companies, who are not ready to share this facility to imports, as they want to flourish their own business and want to discard importers business.

4- This is real fact that local formulation of Pesticides is not so successful due to high temperature and costly availability of Zailin in Pakistan. This is evident from last year experience that results of Imported Pesticides are much more better than the local formulated Pesticides. The main reason is that local formulators use Tailin instead of Zailin because Zailin is costly in market. According to formulator’s requirement. The Pesticide manufactured by local formulating companies in high temperature in Country and poor carrier (Taiin) results in poor control of Pesticides at grower farms. In season 2003-2004 the loss to cotton crop was not mostly due to adulterated Pesticides but it was due to substandard local formulated Pesticides.

(2) Immediate Relief Sought.

1- The Sales Tax on Imported packed pesticides should be reduced upto 5% instead of existing 15%. This will help in the price equalation of Imported and local formulated and packed Pesticide.

2- The Applications of New Registration should be disposed off on war footing basis and the registration certificate may be issued before 30th March 2004. Otherwise Importers will not be able to supply Pesticides at proper time.

3- The Importers may be allowed to pack their products in their own supervision from any registered packing plant.

4- The registered packing plants / importers may be allowed to get tested the Pesticides from any laboratory.

5- As new laboratory is installed about in Rs. 10.000 (M) it is not possible to install laboratory for each importer. The laboratory should be compulsory only for formulation plant. Importers should be allowed to get their imported pesticide packed in his supervision after get it tested from any other laboratory.

6- In drum pack 16,000 Liters are shipped in one 20 ft. container when packed Pesticide are shipped only 8,000 liters is one container. For one year test case Government should give subsidy in shipping freight of the Pesticides to match the price with local formulation packed Pesticides. It the results are satisfactory then this facility should be increased in future.

7- The new Policy of Pesticide should be finalized with consultation of small and big Importers and the new Policy should be implemented in 3 to 5 years gradually, keeping in view the availability of infrastructure in the Country.

I assure you that by giving little relief Pakistan will be easily able to get cotton crop 2004-2005 INSHA ALLAH about 13.000 (M) bales. The delay or untimely decision will be harmful for the coming season cotton crop.

Khawaja Muhammad Azam
Member, Federal Textile Board
Ministry of Industries, Govt. of Pakistan.