April 24, 2007	Tuesday	Rabi-us-Sani 06, 1428

MULTAN, April 23: The cotton growers have expressed concern over five per cent regulatory duty on import of a widely-used pesticide by the ministry of finance.

In SRO 44(1/2007 dated January 17, 2007 the ministry imposed regulatory duty of five per cent ad valorum on import of ‘Emamectin Benzoate’ by exercising powers conferred by section 18 of the Customs Act, 1969.

Earlier, only two companies were allowed to import the said pesticide in the country and the price of one liter Emamectin Benzoate was about Rs3,200 but in February 2005 the ministry of food, agriculture and livestock (Minfal) decided to bring 34 branded pesticides on the generic list after expiry of their patent rights and Emamectin Benzoate was one of them.

Federal Minister for Food, Agriculture and Livestock Sikandar Hayat Bosan had termed the decision a major step saying that it would allow registered importers to import pesticides without any discrimination.

He said that the move would help in reducing the pesticides' prices to an affordable level for the benefits of the growers and would encourage rational use of pesticides.

Consequently, the price of Emamectin Benzoate declined and it was available in the market at less than Rs500 per liter.

A Chinese pesticides manufacturing firm Hebei Vian Bio-Chemical Company (HVBCC) started export its products to Pakistan, including emamectin.

In the meantime, a Pakistani importer group Pak China Chemical moved civil court in Lahore with a claim that he was the sole agent to sell the product in Pakistan and secured a stay order.Later the civil court vacated the stay when the Chinese firm clarified the position but the importer then approached the Lahore High Court against the civil court decision and filed the same suit with another civil court of Lahore and secured a fresh stay order against customs clearance and registration of Emamectin.According to sources Ali Akbar Enterprises has also approached the prime minister and showed its interest to set-up a Emamectin manufacturing plant in the country and requested favour in this regard and in return the government imposed five per cent duty on import of Emamectin.

Dr Ibaad Badar Siddiqui, vice president Central Cotton Committee said that Emamectin was also used on cotton and his institute could not remain unconcerned with this decision.

He said that the decision was not in favour of cotton growers and the prices of cotton related products should not increase during the period when the cotton-sowing season has begun.

Khwja Muhammad Shuaib of Farmers Vision Forum told this correspondent that the duty had been imposed without recommendation by the Minfal, while Agricultural Pesticide Technical Advisory Committee, which is a statutory body for pesticide business rules, had observed in its meeting held on February 28 that there will be no compromise on the safety and quality issues and the department of plant protection will chalk out comprehensive guidelines as stipulated by the FAO for manufacturing pesticide.

He said that farming community was also in favour of basic manufacturing on pesticides in the country, which may in turn reduce the prices but five per cent duty imposed on the import of Emamectin was unjustified before its manufacturing and supply in the country.

He demanded immediate withdrawal of five per cent increase in duty on Emamectin to save the cotton growers from swelling of their cost of production, particularly when the Emamectin is one of the largely sprayed pesticides in the cotton fields.

Although the duty was imposed on January 17, the Minfal seems least concerned and no action has been taken to help the growers. The Minfal minister, secretary and director general of plant protection department were not available for comments.