Showing posts with label Iraqi. Show all posts
Showing posts with label Iraqi. Show all posts

Tuesday, 29 January 2013

Iraqi Agriculture in Crisis

By: Omar al-Shaher for Al-Monitor Iraq Pulse.
Beset by a lack of expertise, capability and workforce, agriculture in Iraq — and other sectors of the economy — is dysfunctional.

In the mid-1990s, following the invasion of Kuwait, an economic blockade was imposed on Iraq, preventing the import of vital goods. Vast tracts of Iraqi land were used at the time to meet 50% of the domestic wheat demands.
According to experts, agriculture represented 7% of Gross National Product (GNP) in the 1990s.
In the aftermath of the 2003 Iraq war, agricultural productivity decreased by 90%. The workforce shifting toward state employment, a lack of government subsidization and the lingering effects of long years of severe drought all took their toll on agriculture. From 2004 until 2010, Iraq witnessed its driest winters on record.
Across large swaths of Iraq, wheat crops rely heavily on rain. This agriculture is widely spread in Kurdistan, the provinces of Anbar and Saladin, the city of Mosul and some southern regions, all of which typically experience high amounts of rainfall.
Saddam Hussein’s regime succeeded in persuading the owners of large agricultural holdings to invest in wheat through tripling the prices paid for the crops. When the government of Nouri al-Maliki, on the other hand, followed Saddam’s steps in 2008 by doubling the prices, they aroused little interest on the part of farmers.
For years now, the amount of wheat bought by the Ministry of Trade from local farmers has been steady and not seen any sort of rise, even when prices doubled. As this quantity has increased by 10% since the year 2009, the absence of local contribution has become even more apparent.
Raad Khalil, an Iraqi in his thirties, says that he “temporarily” works in agriculture. “I am looking for a government job, and there are a few officials who have promised to hire me,” he adds. Khalil owns 7,000 square metres of land along the Euphrates River near al-Ramadi, one of Iraq’s biggest towns.
“Agriculture is a hard task to perform and does not provide a steady livelihood; I have a family whose needs I must meet. At times, I make $500 per month, other times only $100 and on occasion I don’t earn anything at all. The Iraqi soldier receives a salary of $1,000 monthly. Why not ensure a fixed and stable income for my family?”
Khalil holds a diploma in Islamic studies. He explained that the majority of young farmers in his region have enlisted in the army or police force, while the rest are waiting in line. “The area of plowed lands is dwindling day after day; the workforce is becoming scarce,” he declares.
Khalil must constantly deal with his father’s vehement reluctance. “My father belongs to this land; he urges me to pursue agriculture work. We have been a family of farmers for centuries,” he says.
Despite the government’s support, the number of farmers has fallen.
The figures of the Ministry of Agriculture indicate a significant decrease in the number of farmers and the area of plowed land, a high-ranking official in the ministry confirmed. Speaking on condition of anonymity, he reiterated that “this work is no longer tempting. Farmers enviously watch government employees buying brand-new vehicles and replacing their furniture. They want the same for themselves.”
When asked if the state were capable of restoring the legacy of agriculture through subsidizes, he replied, “If people do not believe it can be restored, the state cannot do anything to change their views.”
The government provides farmers with fertilizer, agricultural equipment, different types of seeds and pesticides at subsidized prices. Additionally, it offers installment plans if farmers wish to buy tractors or other necessary vehicles.
The agricultural slump did not only impact wheat. Post-2003, the repercussions have been felt by other crops such as potatoes and tomatoes. Iraq, once a major exporter, has become dependent on imports all year round.
Crops imported from Iran, Jordan, Kuwait and Turkey are highly competitive in terms of quality and price.
“Jordan uses techniques that Iraq lacks such as drip irrigation and sprinklers while we opt for surface irrigation. Thus, Jordanian farmers need one quarter of the water that we do,” Khalil says.
In 2011, the government tried to limit the import of crops. As a result, prices skyrocketed and what was thought to be a way to boost local agriculture failed miserably.
Omar al-Shaher is a contributor to I’s Iraq Pulse. His writing has appeared in a wide range of publications including France’s LeMonde, the Iraqi Alesbuyia magazine, Egypt’s Al-Ahaly and the Elaph website.


Original Article Here

Sunday, 27 May 2012

Thailand rice prices slip but Iraqi demand lends support


Thai rice prices slipped this week on the prospect of fresh supply flooding into the market although demand from Iraq provided some support, while Vietnamese prices continued to fall as loading demand subsided, traders said on Wednesday.

Thailand's benchmark 100 percent B grade white rice was at $630 per tonne, down from last week's $640, which was the highest in seven months.

The 5 percent broken grade was at $610 per tonne, down from last week's $612.
Thai prices have been pushed up by a government intervention scheme, which has left little grain in the market for exporters.

They are likely to fall further in the next few months because of fresh supply from an off-season crop of 2-4 million tonnes due to be harvested in July.
The intervention scheme ends in June and it is not clear if the government will extend it since it has limited warehouse space, with stockpiles at a record high of 13.9 million tonnes of paddy.

"Prices were on a downward trend.

However, demand from Iraq will help support prices, at least for a short time," said a Bangkok-based trader.

Iraq's state grain board has purchased 100,000 tonnes of rice in an international tender, of which 70,000 tonnes was from Thailand and 30,000 tonnes from Uruguay.
The main Thai suppliers to the Iraqi market are normally Asia Golden Rice, Capital Rice and Chaiyaporn, traders said.

"Shipment is expected to be done by July and after that prices could fall again as there's no demand and supply is about to rise," said Wanlop Pichpongsa of Capital Rice, who confirmed Capital supplied part of the order.

Thailand, the world's biggest rice exporter, is struggling to sell its grain because the intervention scheme has pushed prices up to uncompetitive levels.
It has exported just 2.6 million tonnes of rice so far this year, down 42 percent from the same period in 2011, when it had sold 4.5 million.

Even so, the government still reckons its target of 9.0-9.5 million tones is feasible and is confident it can secure government-to-government deals to boost exports in the second half of the year, using grain from its stockpiles.
NO DEMAND IN VIETNAM In Vietnam, the second-biggest exporter, prices also fell due to an absence of demand, even though the Philippines said it would seek Vietnamese or Thai grain at a tender, traders said.

Its 5 percent broken rice eased to between $420 and $440 a tonne, free on board Saigon Port, from $430-$450 last Wednesday.

The 25 percent broken grade was quoted at $380-$390 a tonne versus $390 a week ago.
"Loading demand is waning and there is very weak commercial demand," a Vietnamese exporter in Ho Chi Minh City said.

The next harvest of the summer-autumn crop is due to start in July in the Mekong Delta food basket.

The Philippines said on Tuesday it would seek 100,000 tonnes of rice from either Vietnam or Thailand, and may open a tender later this year for another 20,000 tonnes.
"This volume is too small for Vietnam's export capacity," another trader said, adding prices would not change even if Vietnam was picked.

Last year Vietnam exported a record 7.2 million tonnes of rice and the country's agriculture minister has said shipments in 2012 would match that, although industry officials forecast volume could drop to 5.4 million.
Copyright Reuters, 2012

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