P.C.

1
1. Name of the Project Indicate name of the project. 2. Location Provide name of District/Province. Attach a map of the area, clearly indicating the projects location. Re-location of Government Seed Farm Hangu at Jozara.

District Hangu, Khyber Pakhtunkhwa Map of the project districts is given as:

Project District

3. Authorities responsible for: i. Sponsoring. Government Agriculture Department. of Khyber Pakhtunkhwa, Livestock & Cooperation

ii.

Execution.

Agriculture (Extension) Department Khyber Pakhtunkhwa. District Director Agriculture, Hangu District. .

iii.

Operation and Maintenance.

iv.

Concerned Federal Ministry.

Not applicable.

4. (a) Plan Provision. If the project is included in the medium term/five year plan, specify actual allocation. The project is reflected in the ADP 2012-13 with an allocation of Rs. 5.00 million and project cost as Rs. 20.00 million. Not Applicable.

If not included in the current plan, what warrants its inclusion and how is it now proposed to be accommodated. If the project is proposed to be financed out of block provision, indicate: Amount Already Committed. N.A.

Total Block Provision N.A.

Amount proposed for this project. N.A.

Balance available. N.A.

(b) Provision in the current PSDP/ADP.

The project is included in the ADP 2011-12 at serial No. 479/110121 with an allocation of Rs. 20.00 million. The project was included in past years ADP 2011-12 with an allocation of Rs. 40.00 million. The year passed in site identification/ selection; as at first it was proposed to be established in Jarma Kohat which was distributed amongst the occupants on payment basis. The scheme again proposed in for ADP 201213 which is included.

Project objectives. The objectives of the sector/sub sector as indicated in the medium term/five year plan be reproduced. Indicate objectives of the project and develop a linkage between the proposed project and sectoral objectives.

To promote the use of improved quality seed conforming to national and international quality standards To promote the development of seed industry for improving crop production in Khyber Pakhtunkhwa. To represent the interests of the seed industry in Khyber Pakhtunkhwa. To improve communication between the seed industry in the Province and the country. To promote activities that lead to regulatory harmonization in the province to facilitate seed movement. To interact with national and international organization involved in seed activities to promote the interests of the seed industry. To improve communication between seed suppliers in Khyber Pakhtunkhwa by providing necessary seed industry information and holding meetings, seminars, workshops, etc To advise relevant government regulatory authorities in drafting rules and regulations pertaining to seed trade, etc

In case of revised Projects, indicate objectives of the project, if different from original P.C.1.

Not applicable.

5. Description and justification of project. Describe the project and indicate existing facilities in the area and justify the establishment of the Project. Agriculture is a mean stream of our economy. It is a major source of livelihood of the people of Pakistan and shares 22% in the national gross domestic product. The sector also accommodates more than 40% to the labour force. Wheat is staple food of the inhabitants and is grown on 9044385 hectare on country level. In Khyber Pakhtunkhwa, wheat occupies 759918 hectares (about 9% of the country share). The wheat crop occupies a vital position in Pakistans agrarian economy. Its share in terms of percentage area under major crops has remained around 36% for the last three decades (Agricultural Statistics of Pakistan). The production of the wheat crop in Pakistan is handled by private producers, but its marketing and trade have mainly been regulated by the government through support price policies announced by the Government of Pakistan at the beginning of each cropping season. According to economic theory, the announcement of support or procurement prices at the time of wheat sowing, the practice of wheat procurement, and the size of wheat stocks procured positively affect the area under wheat production and level of wheat production. Despite the fact that the wheat crop contributes significantly toward the economy of Pakistan, there has been little analytical research carried out on its supply and demand determinants, with the exception of some research on the cost of production, supply response, and demand elasticises. Even studies carried out on cost, supply, and demand do not provide a complete picture; for instance, most of the studies carried out on the cost of production provide different estimates for the same crop and year due mainly to over- or underestimation (Arifullah, 2007).

Khyber Pakhtunkhwa having 26.896 million populations of settled districts and 4.452 million of FATA, should produce 3.762 million tonnes of wheat while production for 2010-11 remained 1.156 million tonnes i.e. only 31% of its requirements. Economically the public sector should provide 20% of the requirement to maintain balance in demand and supply and rationalize costs of inputs. So to provide seed requirements, public sector should have to produce 18.742 metric tonnes of wheat seed. For production of required quantity of seed, there is a need of 23400 acres land. Agriculture Extension have only 1500 acres cultivable pieces of land in DIKhan, Hangu, Mardan and Haripur. As far as matter of Hangu farm is concerned, the land was purchased by the Agriculture Department Khyber Pakhtunkhwa in 1969 for the purpose of seed farm, fruit nursery farm. The area of that farm was 395 kanals (49.37 acres). In the following year, keeping in view its prime location, the local elders/feudal, politicians etc had tried to snatch this land for their purposes. A 2.5 acres piece of land was taken for Sports Complex and 5 Acres for Fauji Foundation Hospital. C&W Department had constructed a dug well in 1947 which is still functional but insufficient to provide the farm with sufficient irrigational water. That was why the fruit nursery farm activities were discontinued and it was supposed to produce certified seed of crops for rain fed areas. Now the district Director agriculture was asked to submit proposal to functionalize the farm and to produce quality seed of crops. He, under his letter No. 25 dated 21/1/2011 that the seed farm Hangu is situated in centralized area of Hangu city and houses are situated around it. Therefore 5

the encroachment in the farm can not be controlled. Secondly the farm is purely Barani and in case of drought season the production of the farm could not be used for the seed purpose. The land being at a prime location is commercially valuable and can fetch a handsome amount, if is disposed off through open auction. The amount thus to be earned should be utilized to purchase irrigated piece of land some where else with in the district and adjacent. The proposal, passed on to the government for its approval, which is under process. The District Director Agriculture has negotiated with a number of people and also is in search of state land available in Hangu District either in suburbs or adjacent villages to swap the present land with new location. A committee constituted under the chairmanship of Director General Agriculture with Director Agriculture Engineering, EDO Agriculture Hangu etc visited the area for site selection and recommended establishment of the Farm at available state land in Jozara Hangu. According to the report and soil analysis land available over there is suitable but needs reclamation and development. There is also need of establishing infrastructure i.e. farm buildings (implements shed, godowns, office, plant protection store and residential buildings for the functionaries). The Joint Inspection Report reveals that about 70 Acres of land is available at Jozara out of which 44 Acre is fit for crop production. The project aimed at to utilize all 44 Acres for quality seed production while rest of the land of 26 Acres should be utilized for infrastructures like Provide technical parameters i.e. input and output of the project in quantitative terms. Also discuss the technology aspects of the project.
With the help of this project an area of about 1565 Acres will be brought under canola crop. The demonstration plots would be laid out in the farmers field. The project will provide the beneficiary with a pale of seed, chemical fertilizer

and pesticides for the control of insect, pest and diseases. From this area farmers will fetch 890.56 metric ton of canola produce (445.28 tonnes/annum).

Per Acre Input Requirements and their Cost.

Seed Requirements
S.No. District Seed Requirements/Input (in Kgs) 2011-12 2012-13 Total Area in Seed Required Qty Area in Seed Required Required Acr. Rate/Acr of Seed (in Acr. Rate/Acr Qty of Seed Qty. in (in Kgs) Kgs.) (in Kgs) (in Kgs.) Kgs. 85 85 85 90 90 90 85 85 85 780 2 170 170 170 180 180 180 170 170 170 1560 85 85 80 85 90 90 90 90 90 785 2 170 170 160 170 180 180 180 180 180 1570 340 340 330 350 360 360 350 350 350 3130

1 2 3 4 5 6 7 8 9

Swabi Mardan Buner Lakki Marwat DIKhan Tank Bannu Karak Haripur Total :

Fertilizer Requirements
S.No. District Fertilizer Requirements (in bags) 2011-12 2012-13 Total DAP Urea DAP Urea DAP Urea Total 127.5 170.0 127.5 170.0 255.0 340.0 595.0 127.5 170.0 127.5 170.0 255.0 340.0 595.0 120.0 160.0 120.0 160.0 240.0 320.0 560.0 127.5 170.0 127.5 170.0 255.0 340.0 595.0 135.0 180.0 135.0 180.0 270.0 360.0 630.0 127.5 170.0 135.0 180.0 262.5 350.0 612.5 135.0 180.0 135.0 180.0 270.0 360.0 630.0 135.0 180.0 135.0 180.0 270.0 360.0 630.0 135.0 180.0 135.0 180.0 270.0 360.0 630.0 1,170.0 1,560.0 1,177.5 1,570.0 2,347.5 3,130.0 5,477.5

1 2 3 4 5 6 7 8 9

Swabi Mardan Buner Lakki Marwat DIKhan Tank Bannu Karak Haripur Total :

Output of the Project:

The project will fetch increased oil seed crops production from the demonstration plots to be laid out in the farmers fields. The quantitative output of the project in term of produce is estimated as:
District Swabi Mardan Buner Lakki Marwat DIKhan Tank Bannu Karak Haripur Total : District Expected Produce (@ 506 kgs/acre.) in M.Tonnes 2011-12 2012-13 Total 43.01 43.01 86.02 43.01 43.01 86.02 40.48 40.48 80.96 43.01 43.01 86.02 45.54 45.54 91.08 43.01 45.54 88.55 45.54 45.54 91.08 45.54 45.54 91.08 45.54 45.54 91.08 394.68 397.21 791.89

Oil extraction from 40% of the product (in litters) 2011-12 2012-13 Total Swabi 6881.60 6881.60 13763.20 Mardan 6881.60 6881.60 13763.20 Buner 6476.80 6476.80 12953.60 Lakki Marwat 6881.60 6881.60 13763.20 DIKhan 7286.40 7286.40 14572.80 Tank 6881.60 7286.40 14168.00 Bannu 7286.40 7286.40 14572.80 Karak 7286.40 7286.40 14572.80 Haripur 7286.40 7286.40 14572.80 Total : 63148.80 63553.60 126702.40 From the above quoted produce canola oil would be extracted at a ratio of 40% of the produce so the farming community will fetch 63351.20 litters canola oil per annum which would fetch an income of Rs. 9.502 million per annum at an average. Besides that canola cakes to be obtained would also be used as by product to the domestic animals as fattening factor which resultantly increase meat/beef ratio by 10~15% .

Provide details of civil works, equipment, machinery and other physical facilities required for the project.

Physical facilities to be required for the project have already been mentioned above. The seed, fertilizers and pesticides would be procured for further distribution amongst the beneficiaries. The beneficiaries are required to provide the project with usage of agriculture implements required for sowing and harvesting of the crop; implements to be used for plant protection measures.

The plots would be allotted under a mechanism to be devised in convenience of the farming community and service providers. For the purpose, beneficiary will have to provide with an under taking (specimen at the end of the paper), that he will abide by the advices / guidelines extended by the agriculture department / experts from time to time. He will have to utilize the quantity of the produce proposed / recommended by agriculture department by him while rest of the produce (if any) will be disposed off through sale to government agencies or agriculture development fund (what the case may be). Indicate governance issues of the sector relevant to the project and strategy to resolve them.

The farming community / beneficiaries should have to be bound for disposal of the produce as per instructions of the agriculture department (extension wing). The farmer at itself doesnt act accordingly the instructions and feel himself at liberty to handle the produce at his will. The fruit of the project, in this way does not appear to be projected before the rest of the community. So to solve the problem, it is proposed that before allotment of a plot, the beneficiary would have to provide the department with an undertaking that he will abide by the guidelines issued by the department from time to time and would be bound to dispose his produce off under the instruction of the department.

Agriculture Production: For fisheries projects: Give area for fishing and the legal rights to that area; the availability of trawlers; amount and type of fish likely to be available. For Forestry projects: Indicate nature and state of existing forests their growth rate and any problems connected therewith. Give details of species; rotation and anticipated rotation and volume yield. Indicate availability of complementary services, e.g. access roads, saw mills etc. Not applicable.

Not applicable.

 For Agriculture Production Projects: Give present and future crop yield, cropping intensity; land use pattern technological intervention and the basis for calculation of the future output.

According to Economic Survey of Pakistan 2010-11, during 2009-10 canola crop was grown over an area of about 233000 acres with production of 131000 tonnes seed. Present situation is not encouraging one. The manifesto of project is to enhance edible oil area and production. With the help of this project 1565 acre area will be brought under canola cultivation which would fetch 791.89 tonnes of its produce. If 10% of the produce is utilized as canola seed for further cultivation, it will bring 39550 acres more area under canola.

For all agriculture production sector projects, provide (i) Transport, equipment and field machinery available with the department.
Road worthy vehicle are available with the District Officers of Agriculture in the project District. Besides that Agriculture Officers and Field Assistant have motorbikes for visit and supervision of the project activities.

(ii)

Effect on farm income and basis for pricing of outputs.

From the produce canola oil would be extracted at a ratio of 40% of the produce so the farming community of Khyber Pakhtunkhwa will fetch 63351 litters canola oil per annum which would fetch an income of Rs. 9.502 million per annum at an average. Besides that canola cakes to be obtained would also be used as by product to the domestic animals as fattening factor which resultantly increase meat/beef ratio by 10~15%. The project will bring an area of about 1565 Acres under canola crop. The expected yield per acre is estimated as 791.89 tonnes during 2 years i.e. project period. If it is sold @ Rs. 160/- p.killogram or Rs. 0.160 million per tones the farmer will fetch Rs. 126.70 million of Rupees from its produce.

(iii)

Farm gate prices.

and

international

10

Agriculture Extension; Provide history of extension work in and around project area an justify the extension work. Agriculture Extension system is an out of school education system. It has its mandate viz improving living standard of farming community through increase in farm income by perceiving potential output with an acceptable quality on sustainable basis. Agriculture Extension department have following functions to attend. 1. Dissemination of recommended agricultural practices. 2. Educate/Train farmers in improved agricultural production technology. 3. Production and distribution of quality seed and fruit plants. 4. Advisory services in insect/pest management & horticultural activities. 5. Organize farmers for collective solution of agricultural problems. 6. Quality control and regulatory measures of Agricultural inputs. 7. Establish & Develop Market Information System (MIS) & Establishment of Regulated Markets in Khyber Pakhtunkhwa. 8. Execution of various crops Introduction & Promotion Programme. For adoption of modern agriculture techniques farming community should have motivated to shift from indigenous methods to modern track. For the purpose meetings with the community are arranged, lectures are delivered but the most effective tool is laying out of demonstration plots, holding of field days, arranging workshops and seminars, exposure visits, experience sharing workshops etc. In the history of agriculture extension, there is a long queue of progress. The efforts made by Agriculture Extension Work Force lead the nation towards prosperity and self sufficiency in food grains despite the global challenges of food insecurity. 11

Provide transport, equipment and field machinery etc available with the department.

The Department has had provided its Agriculture Officers/Field Assistants with motorbikes on ownership. The cost of these bikes are recovered in easy installments without any extra charges. So projects provide them with POL / maintenance of their vehicle and they use this transport for official touring, field visits, execution and operational activities of the development projects. As far as matter of equipments is concerned, most of the Model Farm Services Centers have agriculture equipments to provide it to its registered members as well as un registered farming community of that respective district. These farm equipments are provided on nominal rental. The cost charged is used for maintenance of those equipments. Anyhow, arrangements of equipments and farm machinery is sole responsibility of the beneficiary either he own or get on rental.

Industry, Commerce and Minerals: Provide installed capacity, proposed expansion and available technologies, the selected technology and reason for its selection. Whether the output is meant for: (i) (ii) (iii) Import substitution. Meeting domestic demand or Export oriented. Not applicable. Not applicable Not applicable. Not applicable. Not Applicable.

In case of export, give likely markets and their size, competitive prices and cost of production to justify the project. Provide all information under with and without project conditions in case of BMR and expansion projects.

Not applicable.

12

6. Capital Cost Estimates. Indicate date of estimation of project cost estimate. Basis of determining the capital cost be provided. It includes market survey, schedule rates, estimation on the basis of previous work done etc. Provide year-wise physical activities: estimation of August, 2011.

Market prevailing rates.

Year wise / component wise physical activities

S.No. 1 Item Unit 2011-12 2012-13 Total Laying out of Canola D/Plots in: i. Swabi 85 85 170 ii. Mardan 85 85 170 iii. Buner 80 80 160 iv. Lakki Marwat 85 85 170 v. DIKhan 90 90 180 Acres vi. Tank 85 90 175 vii. Bannu 90 90 180 viii. Karak 90 90 180 ix. Haripur 90 90 180 Total : 780 785 1565

Phasing of capital cost be worked out on the basis of each item of work as stated above and provide as per following:
Code Classification 2011-12 0.300 0.494 2012-13 Total 0.740 0.798 1.040 1.292

A03805 Travelling Allowance A03827 POL Charges A09370 Inputs for Dem Plots Cost of Seed Cost of Fertilizers i. DAP ii. Urea Cost of Spray G.Total of the Scheme=

0.250

0.289

0.538

4.680 2.340 0.936 9.000

5.382 2.708 1.083 11.000

10.062 5.048 2.019 20.000

13

 In case of revised projects, provide: Project approved history along with PSDP allocations, releases and expenditure. Item-wise, year-wise actual expenditure and Physical Progress. Justification for revision of PC-1 and variation in scope of project if applicable. Item-wise comparison of revised cost with the approved cost and give reason for variation. Exchange rate used to work out FEC in the original and revised P.C.1s.
7. Annual Operational Cost. Item-wise annual operating cost based on proposed capacity utilization for 5 years.

Project is new one.

Not applicable.

Not applicable.

Not applicable.

Not applicable.

Not applicable

A. Five years summary of the Operational Cost

Code A03805 A03827 A09370 Classification Travelling Allowance POL Charges Inputs for Dem Plots Cost of Seed Cost of Fertilizers i. DAP ii. Urea Cost of Spray G.Total of the Scheme= 2013-14 0.851 0.918 0.332 6.189 3.114 1.246 12.650 2014-15 2015-16 2016-17 2017-18 Total 0.979 1.125 1.294 1.488 5.738 1.055 1.214 1.396 1.605 6.187 0.382 7.118 3.582 1.433 14.548 0.439 8.185 4.119 1.648 16.730 0.505 9.413 4.737 1.895 19.240 0.581 10.825 5.447 2.179 22.126 2.240 41.731 20.999 8.400 85.294

14

B. Component Wise Cost. i.

S.No.

Seed Cost:
District Seed Cost 2013-14 2014-15 2015-16 2016-17 2017-18 31,280 35,972 41,368 47,573 54,709 31,280 35,972 41,368 47,573 54,709 29,440 33,856 38,934 44,775 51,491 31,280 35,972 41,368 47,573 54,709 33,120 38,088 43,801 50,371 57,927 31,280 35,972 41,368 47,573 54,709 33,120 38,088 43,801 50,371 57,927 33,120 38,088 43,801 50,371 57,927 33,120 38,088 43,801 50,371 57,927 287,040 330,096 379,610 436,552 502,035 Total Seed

1 2 3 4 5 6 7 8 9

Swabi Mardan Buner Lakki Marwat DIKhan Tank Bannu Karak Haripur Total Input Cost:

67,252 67,252 63,296 67,252 71,208 67,252 71,208 71,208 71,208 617,136

ii.

Fertilizer Cost a. DAP Cost

S.No.

District

D.A.P. Cost 2013-14 2014-15 2015-16 2016-17 2017-18 586,500 674,475.00 775,646.25 891,993.19 1,025,792.17 586,500 674,475.00 775,646.25 891,993.19 1,025,792.17 552,000 634,800.00 730,020.00 839,523.00 965,451.45 586,500 674,475.00 775,646.25 891,993.19 1,025,792.17 621,000 714,150.00 821,272.50 944,463.38 1,086,132.88 586,500 674,475.00 775,646.25 891,993.19 1,025,792.17 621,000 714,150.00 821,272.50 944,463.38 1,086,132.88 621,000 714,150.00 821,272.50 944,463.38 1,086,132.88 621,000 714,150.00 821,272.50 944,463.38 1,086,132.88 5,382,000 6,189,300 7,117,695 8,185,349 9,413,152

Total DAP Cost

1 2 3 4 5 6 7 8 9

Swabi Mardan Buner Lakki Marwat DIKhan Tank Bannu Karak Haripur Total Input Cost:

1,260,975 1,260,975 1,186,800 1,260,975 1,335,150 1,260,975 1,335,150 1,335,150 1,335,150 11,571,300

b. Urea Cost
S.No. District Urea Cost 2013-14 2014-15 2015-16 2016-17 2017-18 293,250 337,237.50 387,823.13 445,996.59 512,896.08 293,250 337,237.50 387,823.13 445,996.59 512,896.08 276,000 317,400.00 365,010.00 419,761.50 482,725.73 293,250 337,237.50 387,823.13 445,996.59 512,896.08 310,500 357,075.00 410,636.25 472,231.69 543,066.44 293,250 337,237.50 387,823.13 445,996.59 512,896.08 310,500 357,075.00 410,636.25 472,231.69 543,066.44 310,500 357,075.00 410,636.25 472,231.69 543,066.44 310,500 357,075.00 410,636.25 472,231.69 543,066.44 2,691,000 3,094,650 3,558,848 4,092,675 4,706,576 Total Urea Cost

1 2 3 4 5 6 7 8 9

Swabi Mardan Buner Lakki Marwat DIKhan Tank Bannu Karak Haripur Total Input Cost:

630,488 630,488 593,400 630,488 667,575 630,488 667,575 667,575 667,575 5,785,650

15

iii.
S.No.

Cost of Pesticides/Insecticides etc.

District Spray Cost 2013-14 2014-15 2015-16 2016-17 2017-18 117,300 134,895.00 155,129.25 178,398.64 205,158.43 117,300 134,895.00 155,129.25 178,398.64 205,158.43 110,400 126,960.00 146,004.00 167,904.60 193,090.29 117,300 134,895.00 155,129.25 178,398.64 205,158.43 124,200 142,830.00 164,254.50 188,892.68 217,226.58 117,300 134,895.00 155,129.25 178,398.64 205,158.43 124,200 142,830.00 164,254.50 188,892.68 217,226.58 124,200 142,830.00 164,254.50 188,892.68 217,226.58 124,200 142,830.00 164,254.50 188,892.68 217,226.58 1,076,400 1,237,860 1,423,539 1,637,070 1,882,630 Total Spray Cost 252,195 252,195 237,360 252,195 267,030 252,195 267,030 267,030 267,030 2,314,260

1 2 3 4 5 6 7 8 9

Swabi Mardan Buner Lakki Marwat DIKhan Tank Bannu Karak Haripur Total Input Cost:

C. Total Input Cost

S.No. District Total Inputs Cost 2013-14 2014-15 2015-16 2016-17 2017-18 1.028 1.183 1.360 1.564 1.799 1.028 1.183 1.360 1.564 1.799 0.968 1.113 1.280 1.472 1.693 1.028 1.183 1.360 1.564 1.799 1.089 1.252 1.440 1.656 1.904 1.028 1.183 1.360 1.564 1.799 1.089 1.252 1.440 1.656 1.904 1.089 1.252 1.440 1.656 1.904 1.089 1.252 1.440 1.656 1.904 9.436 10.852 12.480 14.352 16.504 Total Inputs Cost 2.211 2.211 2.081 2.211 2.341 2.211 2.341 2.341 2.341 20.288

1 2 3 4 5 6 7 8 9

Swabi Mardan Buner Lakki Marwat DIKhan Tank Bannu Karak Haripur Total Input Cost:

8. Demand and supply analysis (for Industrial and Agricultural Production Projects). Description of product / services.
The farming community i.e. target group of the project will be provided with inputs like seed, fertilizers and pesticides for laying out of demonstration plots in to their fields. They should abide by the instructions /directives communicated to them by the Agriculture Field Staff from time to time. The Agriculture staff namely District Director Agriculture of the concerned district will visit the field/plot from time to time. The plots would be laid out under the instructions and direct supervision of concerned Agriculture Officer who would be assisted by his Agriculture Inspector and Field Assistant. The Agriculture Inspector or Field Assistant of concerned circle would frequently pay visit to the demonstration plot and would be intact with farmers from sowing to harvest.

16

 Demand/Supply along with unit price for the last five years.

Pakistans vegetable oil imports are forecast at a record 2.16 million metric tons (MMT) in Marketing Year (MY) 2011/12, five percent higher than the estimated 2.05 MMT imported in the 2010/11. Nearly 75 percent of Pakistans domestic consumption of vegetable oil is met through imports, 81 percent of which is comprised of palm oil. MY 2011/12 imports of soybean meal are projected at a record 400,000 tons, largely sourced from India. Production of oilseeds in 2011/12 is forecast at a record 5.8 MMT, up 24 percent from the estimated 4.7 MMT harvested in 2010/11. Pakistans sunflower area in MY 2010/11 increased by over 65 percent over the previous year and production is estimated at 660,000 tons. Imports of oilseeds are forecast at a record 1.3 MMT (92 percent rape seed and 8 percent sunflower seed). As far as requirements of Khyber Pakhtunkhwa are concerned, presently the population of the province is estimated as 25697000 during 2011 (Khyber Pakhtunkhwa Development Statistics 2010); per capita consumption of edible oil is 28 Kg/Lit per one/annum; thus total requirements of edible oils comes to 719516 metric tons. Per Liter Unit price/consumer price is Rs. 190.00 at present. In 2008 per unit cost was Rs. 136/Lit.

Production, Supply and Demand Data Statistics:

Total Oilseed 2009/2010 Pakistan Market Year Begin: Oct 2009 USDA Official Area Planted Area Harvested Beginning Stocks Production MY Imports MY Imp. from U.S. MY Imp. from EU Total Supply MY Exports MY Exp. to EU Crush Food Use Dom. Cons. Feed Waste Dom. Cons. Total Dom. Cons. Ending Stocks Total Distribution CY Imports CY Imp. from U.S. CY Exports CY Exp. to U.S. TS=TD 3,722 67 5,097 1,078 2 18 6,242 0 0 5,227 0 730 5,957 285 6,242 980 2 0 0 0 3,432 28 5,097 1,005 0 0 5,822 0 0 5,070 2 710 5,782 40 5,822 0 0 0 2 0 3,622 285 4,789 910 2 15 6,012 0 0 5,230 0 628 5,858 154 6,012 810 2 0 0 0 3,332 40 4,682 1,180 0 0 5,902 0 0 5,120 2 750 5,872 30 5,902 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 4,092 30 5,792 1,300 0 0 7,122 0 0 6,130 2 940 7,072 50 7,122 00 0 0 0 0 New Post Market Year Begin: Oct 20 10 USDA Official New Post Market Year Begin: Oct 2011 USDA Official New Post 2010/2011 2011/2012

Source: Pakistan Oil Seeds and Products 2011.

17

 Imports/Exports for the last five years along with unit price (if applicable).

Pakistan is among one of the worlds largest importers of vegetable oil. In Market Year 2011/12, palm oil imports are forecast at a record 2.1 MMT, up 5 percent from last years estimate of 2.0 MMT. Refined palm oil accounts for about 81 percent of Pakistans total edible oil imports. The United States exports only limited quantities of soybean oil to Pakistan in the form of food aid.

Project demand/supply for 10 years.

Year 1998 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

Population '000" Per Capita Consumption Settled FATA Toal of edible oil (in kgs) 17736 3176 20912 28 23640 4400 28040 24307 4494 28801 24993 4591 29584 25679 4689 30368 26384 4790 31173 27108 4892 32000 27852 4997 32849 28617 5104 33721 29402 5214 34616 30209 5325 35534 31038 5439 36478 31890 5556 37446 32765 5675 38440 33665 5797 39461

Requirements (in M.Tonnes) 585545 785123 806439 828344 850307 872856 896007 919776 944180 969235 994960 1021373 1048491 1076333 1104920

As already mentioned the local produce (on country level) fulfils only 25% of the total requirements, while rest is recouped through import of edible oils. The project is aimed at to motivate the farming community to adopt the crop and include it in their cropping pattern. It would help to bring a gradual increase in the area under crop by 5~10% per annum.

18

 Proposed year-wise production and unit price of the product. From the project following production is estimated to be derived to the farmers through laying out of demonstration plots in their field.
District Swabi Mardan Buner Lakki Marwat DIKhan Tank Bannu Karak Haripur Total : Expected Produce (@ 506 kgs/acres.) in M.Tonnes 2011-12 2012-13 Total 43.01 43.01 86.02 43.01 43.01 86.02 40.48 40.48 80.96 43.01 43.01 86.02 45.54 45.54 91.08 43.01 45.54 88.55 45.54 45.54 91.08 45.54 45.54 91.08 45.54 45.54 91.08 394.68 397.21 791.89

Existing and proposed arrangements for marketing. The produce of these demonstration plots to be laid out in the farmers field will be disposed off in consultation with Department of Agriculture Extension. The Extension staff will help the farmer in marketing of the produce. 9. Financial Plan Source of Financing: (a) Equity: Sponsors own resources Federal government Provincial government DFIs/banks General Public Foreign Equity (indicate partner Agency. NGOs/Beneficiaries Others --Rs.20.000 Million (ADP 2011-12) -------Provincial ADP 2011-12.

19

(b) Debt Indicate the local & foreign debt, interest rate, and grace period and repayment period for each loan separately. The loan repayment schedule be also annexed. (c) Grants along with source. (d) Weighted cost of capital 10. Benefits of the project and analysis. Financial: Income to the project along with assumptions:

Not applicable.

Provincial ADP --

(In Million Rs)

District Expected Income from the Produce (@ Rs. 160000/- p.tonne) (15% increase over the last year) 1st year 2nd year Total 6.882 7.914 14.795 6.882 7.914 14.795 6.477 7.448 13.925 6.882 7.914 14.795 7.286 8.379 15.666 6.882 8.379 15.261 7.286 8.379 15.666 7.286 8.379 15.666 7.286 8.379 15.666 63.149 73.087 136.235

Swabi Mardan Buner Lakki Marwat DIKhan Tank Bannu Karak Haripur Total :

Economic: Benefit to the economy along with assumption.

Through the help of this project socio economic condition of hard living farming community will be changed. With better yield from improved canola crop, he will fetch better income with lesser investment. From the above mentioned targeted area, the farmer will fetch 791.89 tons canola. If 40% of this produce is used for further plantation i.e. 316.75 metric tonnes, it will cover 158375 acres under the crop and with 10% annual increase in area it would touch 174212 acres. Following table is an assumption of the area to be brought from40% of the above produce. 20

District

Swabi Mardan Buner Lakki Marwat DIKhan Tank Bannu Karak Haripur Total =

Area to be brought from the 40% of the Expected Produce (in acres) 1st year 2nd year Total 8602 8602 17204 8602 8602 17204 8096 8096 16192 8602 8602 17204 9108 9108 18216 8602 9108 17710 9108 9108 18216 9108 9108 18216 9108 9108 18216 78936 79442 158378

Social: Benefits with indicators:

Through better income farming community will have a pleasant social change as in enhanced purchasing power, stepping forward to prosperity the socio economic level would be enhanced.

Result Based Monitoring (RBM) Indicators: Indicate Result Based Monitoring (RBM) framework indicators in quantifiable terms in the following table.
S.No Input Outcome Baseline Indicator Targets after Completion of Project Production in The target/ Area to be brought M.Tonnes achievement during from the 40% of the the 1st year of the Expected Produce (in project is Base line Acres) (in Acres) 8705 8705 8193 8705 9217 8961 9217 9217 9217 80139 85 85 80 85 90 85 90 90 90 780 8602 8602 8096 8602 9108 9108 9108 9108 9108 79442 Output Targeted Impact

Layingout of Oilseed plots

The produce from the area to be brought from 40% of the expected produce (in matric tonnes) @ 506 Kgs/acre 4353 4353 4097 4353 4609 4609 4609 4609 4609 40198

1 2 3 4 5 6 7 8 9

Swabi =170 Acres Mardan= 170 Acres Buner= 160 Acres Lakki Marwat =170 Acres DIKhan =180 Acres Tank= 175 Acres Bannu= 180 Acres Karak = 180 Acres Haripur = 180 Acres Total : 1565 Acres Or 633.34 ha.

21

SWOT Analysis and Implicative Strategies

Strengths
Diverse agro-ecological situations The diverse agro-ecological situations prevalent in the nine project districts favours cultivation canola oilseed crops. Oilseeds are being cultivated in all the agro-ecoregions of the province. Sub-humid and arid ecosystems also contribute substantial area and production of oilseeds. Strong research for development of oilseed technology exist as work of the Oil Seed Development Board in a number of oil seed crops leads to development of the sector.

Strong frontline extension network for oilseed technology dissemination

The extension network for transfer of oilseed technologies that are developed by oilseeds development board and Agriculture Research Systems would be disseminated through Extension Workers.

Technology Mission on Oilseeds and impact

Public /Private sector can play a predominant role in increasing the production of oilseeds. The project impact/results would catch the eye of the private sector for investment. Continuity of the work of Oil Seed Development Board in Oil Seed Promotion in the Province. Impact of first line transfer of technology Production and distribution of quality oilseeds Seed is a critical and basic input for attaining sustained growth in oilseed production. Distribution of assured quality seed is necessary for attaining higher yields. Project will also provide technical assistance for establishment and maintenance of seed banks private level. The Department of Agriculture Extension Khyber Pakhtunkhwa will be involved in production and distribution of assured quality seeds for the benefit of oilseed growers. Human resource development: Through laying out of demonstration plots and technical training / guidelines to be extended by the Extension Staff will help in human resource development. Initiatives from oil industry. Result assumed from the project activities will also get attention of the Oil Industry and hoped that initiatives would be taken by the oil industry for further extension of the scope of oil seed production in Khyber Pakhtunkhwa.

Page 22 of 40

Weaknesses
Production situation The country produce of oil seed only have a place of 25% of the total requirements. The development process is a long and lethargic. Limited resources do not allow investing billion of rupees on development for getting higher production with increased area under the crop.

System constraints in public sector transfer of oilseed technology Though, the larger portion of transfer of technology responsibility lies with the public sector, there are many lacunae that hamper the transfer of technology efforts by this sector: 1. Multiplicities of technology transfer by each line department and there is little coordination across different departments involved. 2. Narrow focus of the agricultural extension system i.e. limited activities have been undertaken to develop and transfer sustainable technologies to the farmers. 3. Lack of an effective feedback system lead to the extension system that did not focus on the felt needs of the farmers. Individual farmers or farmers forum did not have effective linkage with the research and extension system. 4. Little attention was given by the government in developing a cadre of well-qualified subject matter specialists (SMS) with both technical competence and professional skills to disseminate the improved oilseed technologies to the field level staff as well as the oilseed growers. 5. The poor research-extension linkage and lack of integration across crop limit technology transfer from incorporating high value commodities and diversification of the livelihood activities of the farm into farming systems. 6. Most of the technical staff within the line departments lack the capacity to effectively communicate with both research system and the stakeholder groups. The flow of information from research to extension tends to be top-down rather interactive. There is little use of up-to-date communication technologies viz, mass media, print media and electronic communication between research-extension-stakeholder systems. Processing situation Pakistani processing industry suffers from several maladies like outdated technology, lower rates of utilization of installed capacity, low oil recoveries and high unit costs. Reservation of oilseeds output for small scale processing is depriving the farmers and consumers of the benefits of lower costs of modern processing technology, while putting up the costs for consumers. The cost of vegetable oil processing in the country is very high as compared to the countries like China and USA mainly due to smaller capacities, low technical efficiency and low capacity utilization. Additional inefficiency arises from nonintegration of solvent extraction units with expeller units; As a result, significant amounts of expeller cake are not solvent extracted resulting in considerable losses of oil and meal products.

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Opportunities
Production situation Biotechnology offers an impressive option to supplement the ongoing efforts on developing genetically enhanced germplasm of oilseeds for achieving sustainable food production. Processing situation There are uncommon opportunities to add value to different oilseeds and oils, which must be fully exploited, which will eventually enhance the competitiveness and sustainability of these crops.

Threats
Production situation One factor that has contributed to insufficient domestic supply of oilseeds is the province development strategy that has often favoured production of crops that compete with oilseeds for area. The community is attracted to grow other cash crops like sugarcane, wheat etc and the oil seed crops get little attention of the grower. Processing situation The technical inefficiencies in oilseed production, leads to threatening processing situation. Under utilization of resources reflects a poor-resource base of the farmers and have implications for optimum utilization of inputs and production of outputs, both onfarm and in processing unit to reduce allocative and scale inefficiencies. Lack of assured market for oilseeds and timely and assured supply of quality seeds and raw material for processing have been found as important factors contributing to the poor performance of the oilseed industry. The standards set by the oil import countries after liberalization were very high, at times giving impression that they were used as trade barriers. But all said and done, exporting countries especially the developing and under developed countries were caught in the web of stringent quality parameters. Edible oil demand is higher than the supply which created adverse economical situation.

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Implicative strategies
Production situation The public sector has to strengthen its network for developing improved varieties/ hybrids of oilseeds and must encourage the private sector for production of hybrids and dissemination of technologies. Diversification in existing cropping systems such as rice-rice, rice-wheat and sugarcane in favour of oilseeds is the current need of the country. Providing a policy back up to support diversification in favour of oilseeds through effective input and price support system is very important to increase area under oilseeds. Generation of success stories by working for a minimum of 3 years with the same set of farmers, instead of working with different groups every year. This will help in concluding situation and farming system-specific results in a given agro-ecological situation.
Identification and analysis of success stories created by other sources of innovation. Exposure visit to the successful farms created by the other sources to study the similarities and the differences. Exposure visit for the interested oilseed growers to the success story sources. Replication of success stories by utilizing the successful farmers as the trainers or resource persons and the successful farms as the classrooms. Use of revolving fund for promoting the self-help groups in disseminating improved technological packages instead of distributing subsidies. The community may be motivated and trained in oilseed-based farming systems and other related enterprises rather than merely technological packages. Use of mass media viz, video programmes, print media, radio or television for popularizing the success stories, instead of utilizing the media for popularizing the technological packages. Reorienting the extension/ transfer of technology system as a system that provides marketproducer linkage instead of using it as an agency for distributing input subsidy. It needs a major shift in the outlook of the extension officials of the development departments through constant and intensive human resource development planning and implementation.

To strengthen oil seed marketing system following recommendation may be approved:

Better enforcement of regulated markets Strengthening the appropriate market institutions Promotion of market integration Price incentives for edible oil shortage Better management of edible oil price fluctuation risk during storage Improving quality of information and efficiency of its dissemination Rewarding better quality produce Strengthening regulations regarding quality Enhancing earning from oilcakes and oil meals

25

Fig 1. Conceptual summary on SWOT analysis of oilseed sector and implicative strategies KHYBER PAKHTUNKHWA OIL SEED SECTOR

Strengths
Diverse agro-ecological situations. Strong research network. Strong first-line extension system. Strong public sector network production. Strong HRD facilities. Initiatives from oil industry.

Weaknesses
Dependence on vagaries of monsoon. Lack of adequate seed multiplication. Lower seed replacement ratio. Vulnerability to pests and diseases. Gap in resistance breeding. Resource poor farmers. Weak infrastructure. Technical inefficiency of oil industry. Weak transfer of technology. Lack of regulatory and trade policy support.

for

seed

Opportunities
Biotechnological options for genetically enhanced germplasm. Huge exploitable yield reservoir. Exploiting niche areas of oilseeds cultivation. Value addition to oilseeds, oils and byproducts. Scope for improving efficiency of oilseed processing. Exploiting supplementary sources of oil. Extension of retail boom to oilseeds.

Threats
Present Agri-policy support for competing crops. Continuous cropping. Aberrant weather. Alarming demand for edible oil. Lack of linkage to assured market. High standards in the liberalized international trade.

Implicative strategies
Public private partnership in varietal development. Developing self-reliant seed supply mechanism. Efficient input and policy support for oilseeds. Delineation and development efficient oilseed production zones. Developing and promoting of situation specific IPM and INM packages. Exploitation of niche areas for oilseed expansion. Value addition to oilseeds, oils and by-products. Gap-specific extension strategies. Providing effective market linkage. Favourable policy framework for oilseeds.

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Environmental: Environmental impact assessment negative/positive.

The greenery has positive environmental impact and its absorption power of poisonous matters brings pleasant environmental change. The flower attracts honey bee and they use its nectar for honey preparation in their hives.

Financial/Economic Analysis(with assumptions) Financial analysis Quantifiable output of the project.

As already mentioned above the quantifiable output in terms of income to be derived to the beneficiaries will be 132.61 million during the project life. The project is developing one and not on the basis of profit or loss as is presumed in any commercial launch. Any how with the help of this investment i.e. Rs. 20.000 million, the farmer will fetch 132.61 2 million rupees. It will also cut the import bill of the government as is spent on edible oil. Under this project, the farming community will be given in puts for laying out of demonstration plots. The size of plot will be from acre to one acre. So the number of beneficiaries will be 1079 & 1404 (per annum) as per following schedule:
Nos. of Plots Area Total Area Nos. of (in Kanals) to be brought Plots (in Acres) 300 250 255 266 1071 8 6 5 4 300 188 159 133 780 300 250 255 276 1081 Area Total Area (in Kanals) to be brought (in Acres) 8 6 5 4 300 188 159 138 785

Profit and loss account and cash flow statement

Net present value (NPV) and benefit cost ratio (BCR)

Total number of beneficiaries will be 2152 with an area of 1565 acres. The cost per unit (i.e. one acre) comes to Rs. 12780.00 or Rs. 2223.00 on 1000 population of project districts (Estimated population of project districts is 89,97,000).

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Internal financial rate of return (IFRR).

The project is developmental one. Agriculture Sector is an economic sector and the government launches its development project to give boost to economic growth. Government will not have any internal financial rate of return yet the beneficiaries i.e. farming community will earn better from their fields through the help of these educational activities to be demonstrated in their fields for adoption of better technology in qualitative as well as quantitative terms. Rs. 12780 per acre (Cost of inputs + other operational costs = Rs. 11309 + 1471). Not applicable. The project will pay back to the beneficiary on harvest. Total crop period is about 4 months. The project is a profitable business and no liability rest either on service provider i.e. government or on beneficiary. All the expenses would be borne by the government and services like labour, watering, care, harvest etc is sole responsibility of the farmers/borrowers. The Department will extend its expertise in shape of technical instructions and concerned Agriculture Officer(s), Field Assistant(s) would pay frequent visit to make the highest yield/produce success.

Unit cost analysis.

Break even point (BEP). Pay back period.

Return on equity (ROE).

Economic Analysis Provide taxes and duties separately in the capital and operating cost. From a report published by Global Agriculture Information Network (GAIN) namely Pakistan Oilseeds and products Annual 2011, that the government have levied 16% Central Excise Duty and 3% Income Tax. The project inputs would pay usual taxes levied by the government yet the produce and its by products would share in to national income through GST etc levied by the government.

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Net present value (NPV) and benefit Cost Ratio (BCR).

Before calculating NPV of the project, it is necessary to evaluate the cost of production of the crop. The project will only share costs of seed, chemical fertilizer and pesticides etc. Rest of the cost like services, Water Charges, Transportation, FYM, Care of the Crop, Harvesting etc would be responsibility of beneficiary. Per Acre Cost of Production of the Crop comes to Rs. 51667/- or for780 Acres 40.300 million 1st year. The project share out of this cost would be Rs. 9.000 million (22% of total cost).
Sr.No Operations / Inputs Average no.of oprs/units/acre 2011-12 Cost/Unit Rs. 1 PREPARATORY TILLAGE 1.1 Deep ploughing 1.2 Ploughing 1.3 Planking 1.4 Leveling Seed and Sowing Operations 2.1 Seed (Kg) 2.2 Seed treatment 2.3 SOWING 2.3.1 Ploughing 2.3.2 Planking 2.3.3 Bund making (Man Days) 2.3.4 Charges for Pora/Kera or Tractor with Drill FERTILIZER 3.1 Urea 3.2 DAP 3.3 Transportation 3.4 Fertilizer Application (M. day) INTERCULTURE 4.1 Bar Harrow / Weeding PLANT PROTECTION 5.1 Weedicides/Herbicides/Insecticide/Pesticides IRRIGATION 6.1 Canal (Water Rate) 6.2 Private tubewell (3 Hrs @ Rs.400/Hour) LABOUR FOR IRRIGATION 7.1 Water course cleaning (M.day) 7.2 Labour Charges for irrigation (M.day) FARM YARD MANURE INCLUDING TRANSPORT AND APPLICATION 50% (TORLLY LOAD) TOTAL (1 TO 8) MARKUP ON INVESTMENT @ 9% ON Rs. 10516 / 11062.5 FC HARVESTING 10.1 Harvesting Charges (40 Kgs) 10.2 Threshing Charges (1/12 of Produce) 10.3 Threshing Chagres (Manual M.day) LAND RENT FOR 6 MONTHS @ 18000/PA MANAGEMENT CHARGES FOR 6 MONTHS OF A MANADER @ 10000 PM FOR 100 ACERS AGRICULTURE INCOME TAX 6 MONTHS GROSS COST (Items 1 to 13) VALUE OF BHOOSA NET CULTIVATION COST (Items 14-15) INCLUDING LAND RENT YEILD PER ACER (Kgs) COST PER 40 kgs AT FARM LEVEL MARKETING EXPENSES (Rs/40 Kgs) Cost Per 40 Kgs at Mandi gate Investment Incentive @ 25% Support Price Recommended (40 Kgs) 0.3 2 2 1 2 1 2 2 0.5 1 2 1.5 3.5 0.5 1000 500 250 250 160 1200 500 250 300 500 1500 4000 15 350 Cost/acre Rs. 300 1000 500 250 320 1200 1000 500 150 500 3000 6000 52.5 175

4 5 6

1200

1200 100 4800 350 350 12000 33747.5 0 1500 6720 9000 600 100 51667.5 0 51667.5 506 4800 202.4 65780 16445 7200

4 1 1 3 6 3 42 6 6

1200 350 350 4000

8 9 10

500 160 1500 100

11 12 13 14 15 16 17 18 19 20 21 22

40 506

120 0.4

On the basis of above and project cost following are the NPV of the project.

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NET PRESENT VALUE Investment/ 2011-12 Discount Rate Period (Year) Initial Cash Flow Project NPV Difference Percentage : : : : : : Y 0 1 2 3 4 5 6.33% 5 9,000,000.00 53,163,154.64 44,163,154.64 490.70% Cashflow Y (9,000,000.00) 0 11,840,400.00 1 13,616,460.00 2 15,658,929.00 3 18,007,768.35 4 20,708,933.60 5 Investment/ 201213 11.00% 5 11,000,000.00 63,132,514.42 52,132,514.42 473.93% Cashflow (11,000,000.00) 13,703,745.00 15,759,306.75 18,123,202.76 20,841,683.18 23,967,935.65

The total income to be derived to the farmer from the estimated produce of canola (506 kg/acre) @ Rs. 120/- per Kg on farm gate 60720/-; On whole sale price i.e. on Mandi Gate @ Rs. 130/- per Kg it would be Rs. 65780/- and consumer price it would be Rs. 80960/-. Difference between cost of production and consumer price of one acre produce Rs. 29292.50.

Internal economic rate of return (IERR).

From the area to be brought by the farming community under canola crop following produce is estimated. This produce have a potential to bring the change and rationalize demand and supply. Canola is rich in oil contents and have 40% of the oil at an average. The project will cover 2341 acres of land under the crop which would yield 1184.55 metric tonnes. 40% of this produce if procured as seed it will cover an area of about 473881 acres which on further dissemination will yield as fetch 299691 liters of canola oil. This quantity will fulfil the requirements of which will feed more than 10703 persons (@ 28 kg/head per annum).
Unit Acres M.Tonns Acres M.Tonns M.Tonns kg/one/annum persons Qty 1,565.00 791.89 1,58,378 80,139 12,670.00 28.00 4,52,500.00

S.No. 1 2 3 4 5 6 7

Particulars Area To be covered under the project Estimated Produce @ 506 kgs/acre 40% of produce (i.e. 316.76 tonnes) to be used as seed will cover an area under crop (Seed Rate @ 2 kgs/acre) Estimated Produce of persumed area under crop Estimated Edible oil quantity to be obtained from 40% of the produce (Sr. No. 4) Per Capita Consumption Edible Oil to be available for human consumption

27

Presumed IERR of the Project is as under:

Operational Costs
Inputs Cost Fixed costs Maintenance Depreciation New sales (Produce Acr) Profit per sale Profit ratio Rs. Rs.

Value
17,668,000 2,332,000 Variable N/A 1,565 29,292 6%

Rs.

Expenses

Income

New sales Term in Money saved generated Equipment years Input Cost Fixed Costs Total by project by project sales Total Cash flows 0 Rs. 8,206,000 Rs. 794,000 Rs. 9,000,000 Rs. - Rs. - Rs. - Rs. - Rs. (9,000,000) 1 9,462,000 1,538,000 11,000,000 0 63,148,800 63,148,800 52,148,800 2 10,881,300 1,768,700 12,650,000 0 73,086,640 73,086,640 60,436,640 3 12,513,495 2,034,005 14,547,500 0 84,049,636 84,049,636 69,502,136 4 14,390,519 2,339,106 16,729,625 0 96,657,081 96,657,081 79,927,456 5 16,549,097 2,689,972 19,239,069 0 111,155,644 111,155,644 91,916,575 6 19,031,462 3,093,467 22,124,929 0 127,828,990 0 127,828,990 105,704,061 7 0 0 0 8 0 0 0 9 0 0 0 10 0 0 0 Net Cash Flow = Rs. 450,635,668 IRR = 595.16%

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Foreign Exchange rate of the project (Brunos Ratio) for import substitute and export oriented projects. Employment analysis: Employment generation (direct and indirect).

Not applicable

Though there is no direct employment under the project itself as existing staff will render the duties in addition to their own/mandatory duties, yet through change in agriculture and bringing the new area under cultivation the community should have engage casual labour/farm labour at the ratio of 4 persons per 100 acres so 6335 persons would get jobs if engaged as farm labour for the total presumed area i.e. 158380 acres.

Sensitivity analysis: Impact of delays o project cost and viability. The funds must be released soon after start of fiscal in full and not in the piece meal. Delay in releases would adversely affect the project and will make the achievement difficult even impossible.

11. a) Implementation Schedule: Indicate starting and completion date of the project. October 2011 to June 2016.

Item-wise/year wise implementation schedule in line chart co-related with the phasing of physical activities. Demonstration Plots to Be Laid Out (Area in Acres)
2011-12 2012-13 90 85 85 80 85 90 85 90 90 90

Swabi Mardan Buner 2011-12 2012-13 85 85 85 85 80 80

Lakki DIKhan Marwat 85 85 90 90

Tank 85 90

Bannu 90 90

Karak Haripur 90 90 90 90

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12. Maintenance structure and manpower requirements: Administrative arrangements for implementation of project. The Director General Agriculture (Extension) will administer all project activities through the assistance of Dy. Director P&D & his staff at Directorate General Agriculture (Extension) Khyber Pakhtunkhwa. The required man power by skill is available with the department i.e. District Officer(s) Agriculture, Agriculture Officers, Field Assistants of the concerned / project district(s). 1. DISTRICT DIRECTOR AGRICULTURE: DDA acts as over all in charge of Agriculture (Extension) Activities in his district. He acts as executive/ operational body. Implements plans, policy of the government regarding agriculture. He bridges farming community and Agricultural Scientists and recommendations of the agricultural scientists are disseminated through a number of direct/indirect methods. He uses extension tools for getting highest economical yield of the crops. He maintains cropping pattern in his respective district. He acts as facilitator to the farming community. 2. AGRICULTURE OFFICER: An agriculture graduate, team leader of the Extension Work Force, who is responsible for implementation of the work plan (Kharif & Rabi Action plan chalked out by the government of Khyber Pakhtunkhwa, Agriculture (Extension Department). Executes Developmental activities of ADP/ Non ADP Schemes launches by the Federal/ Provincial and District Governments.

The manpower requirements by skills/profession during execution and operation of the project.

The job description, qualification, experience, age and salary of each job may be provided.

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3. AGRICULTURE ASSISTANT:

INSPECTOR/FIELD

These are important /direct links of Extension works with the farming community. These are Diploma holders in Agriculture. They make the dreams of the farming community true through assistance / guide lines extended to the grower from time to time. These are front line workers and are posted at union council level. 13. Additional projects/decision required: It is necessary to make the marketing of the produce easy, convenient and hassle free. The produce should further be disposed off through oil extraction. It is recommended that a separate project may be initiated for establishment of oil extraction units in the project districts so the farming community may easily dispose its produce off in their own districts. For the purpose government should have contacted to the investors keeping in view the produce and span of project activities, adoption of crop incorporating it in the cropping pattern of farming community on a larger scale as the production would be sufficient for commercial usage.

31

14. Certificate
The name, designation and phone # of the officer responsible for preparing and checking be provided. It may also be confirmed that PC-I has been prepared as per instructions issued by the Planning Commission for the preparation of PC-I for Production Sector projects.

The PC-I along with certificate must be signed by the Principal Accounting Officer to ensure its ownership.

It is certified that the project proposal has been prepared on the basis of Instructions provided by the Planning Commission for the preparation of PC-1 for production sector project.

Prepared:

(Farhat Abbas Durrani) Development Assistant DGA(E) Khyber Pakhtunkhwa, Peshawar (03339333459)

Checked by:

(Dr. Fayaz-ud-Din Qazi) Dy. Director Planning & Monitoring DGA (E) Khyber Pakhtunkhwa, Peshawar (03339139029)

(Muhammad Taslim) Director General Agric.Extn. Khyber Pakhtunkhwa, Peshawar. (0314 947 4490)

Approved by:

(Muhammad Afsar Khan) Secretary to the Govt. Of Khyber Pakhtunkhwa, Agric. Livestoci & Coop. Deptt. Peshawar.

32

PE&DD
a. Identification of Scheme

SCHEME MONITOR AND EVALUATION SYSTEM P.C.1 S.K.I.M. (Scheme Key Indicator Matrix) PE&DD/M&E PC-1 Page 1/3 Checked by:

Code + Title :

District: Sector: Sub Sector Category

579-110121-Enhancement of Edible Oil through Sowing of Canola in Khyber Pakhtunkhwa. Swabi, Mardan, Bunir, Lakki, DIKhan, Tank, Bannu, Karak and Haripur. Agriculture Agriculture Extension Agriculture Mechanization

Name Position

Mohammad Taslim Director General, Agriculture Extension,KPK Approved by:

Tick as appropriate: Civil Work On Farm Water Management Agriculture Extension Agriculture Research Planning & Development Live stock & Dairy Dev: Veterinary Research Fruit & Veg: Dev. Board Cooperative Misc: Name Position

(Muhammad Afsar Khan) Secretary to Govt. Of KPK Agriculture Deptt. KPK Please encircle correct answer: Foreign Aided Project: Name of donor/Foreign Grant/foreign loan Composite Scheme. If yes, number of individual components No N.A No NA

Implementation Dates for this PC-1 Project starting date Sep 2011 Expected completion date 30th Jun, 2013 Proposed Duration in month 22 Months No. Of Financial Years involved 2 years PC-1 Prepared by: Name Farhat Abbas Durrani Dev. Assistant Position Directorate General Agri. (E) Khyber Pukhtunkhwa, Peshawar. Date Signature
Sponsoring Agency/Line Dept. 1b. Revision Status Revised PC-1 or data? If Yes Number of Revisions so far. Date Original PC1 Sanctioned Date of 1st Start of Project Total Project duration from start. Total Number of Financial Years Taken Yes / No

Executing Agency 1c. General Remarks For Ongoing Schemes: Forum approval date. Admn: approval date. Technical Sanction Date Technical Sanction Cost.

If the scheme is revised then indicate the starting date of the revision, completion date as per revision, and the No. of additional months and financial years to be taken.

33

Project: Sector Category

Enhancement of Edible Oil through Sowing of Canola in Khyber Pakhtunkhwa.

Agriculture Miscellaneous Sub Sector: Agriculture Extension

Physcal Targetss

Unit of Overall measure- scheme ment targets

Sr. No. Key indicator 1 Laying out of Canola D/Plots i. Swabi ii. Mardan iii. Buner iv. Lakki Marwat v. DIKhan vi. Tank vii. Bannu viii. Karak ix. Haripur

Acres Acres Acres Acres Acres Acres Acres Acres Acres Acres

Overall Cumulative target by financial year Ex-post cumulative target for Indic. Of three years after copletion Scheme/ weight 1st 2nd 3rd 4th 5th Total 1st 2nd 3rd factor 1565 100% 780 1,565 1,565 780 1,565 2,345 170 170 160 170 180 175 180 180 180 11% 100% 100% 106% 100% 94% 97% 94% 94% 85 85 80 85 90 85 90 90 90 170 170 160 170 180 175 180 180 180 170 170 160 170 180 175 180 180 180 85 85 80 85 90 85 90 90 90 170 170 160 170 180 175 180 180 180 255 255 240 255 270 260 270 270 270

Signatures of approving body

Note:
Fill in the blanks in table. Figures in the last quarter/year should always coincide with figures in overall scheme target column. Weights are in percentages and should always add up to 100% They are usually pre-set but can be modified if there is a need. The weights should always reflect the relative importance of the indicator/activity/output in the total of the scheme. The PC-1 SKIM has to be signed and annexed to the PC1 and to the Administrative Approval forum.

34

Important Notes:
1. 2. All costs are in Million of Pakistan Rupees. The cost breakdown should not be cumulative. Add more columns if necessary. Target setting is to be done always by financial year. This means that a scheme of 10 months duration can still take 2 financial years to complete for instance if it is starts in April.

PE&DD/M&E PC-1 Page 3/3 empty.wk3

Summary Estimated Cost

Financial Year 1st

Financial Year 2nd

Total

Local F.E.C. Local F.E.C. Local F.E.C. in Rs. (M) In Rs. (M) in Rs. (M) In Rs. (M) in Rs. (M) In Rs. (M) i.Capital ii. Revenue iii. Total 9.000 9.000 11.000 11.000 20.000 20.000 -

Note: Capital (Code) refers to the works accounts: revenue (8) to all other accounts. (*) currency used: Pak: Rupees Exchanged Used: N.A.

Signature

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Check List For Appraisal of PC-1 (To be attached to PC-1 Form)

1. Preliminary Checks.
S/No: 1 2 3 4 5 6 7 8 9 10 11 12 13 14 Points Is the Scheme in the ADP? Is the project justified for funding (according to policy guidelines)? Is it also funded by the Federal Government? Is there another scheme of the same nature in this locality/area? If so, has adequate justification for implementing the scheme been given in the PC-1 form? Has a feasibility study been conducted? If yes, summarise findings in working paper. Has the feasibility study looked at the consequences of the project for women; advantages/disadvantages? Has the PC-1 Form has been prepared according to the proper format? Have the gander-specific guidelines satisfactorily been used? Is the PC-1 form complete in every respect? Are plans and drawings for the project included? Building (housing/offices) projects; do they include facilities for women? Is land available? Has it been mentioned in the PC-1 Form whether the site selected is convenient for women/children? Line Deptt. Yes/No Yes/No Yes/No Yes/No Yes/No/N.A ADSC/DSC/PDWP Yes/No Yes/No Yes/No Yes/No Yes/No/N.A

Yes/No Yes/No/N.A

Yes/No/N.A Yes/No/N.A

Yes/No/N.A Yes/No/N.A Yes/No Yes/No Yes/No/N.A

Yes/No/N.A Yes/No/N.A Yes/No Yes/No Yes/No/N.A

Yes/No/NA Yes/No/NA

Yes/No Yes/No

Comments by Line Department, if any.

Comments by ADSC/DSC/PDWP, if any Good, needs further clarification, unacceptable

Assessment of PC-1 Comments by the ADSC/DSC/PDWP

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2. Overall and General checks: Does the PC-1 Form clearly explain the 1 specific problems to be addressed? Has the target-group been involved in 2 the identification of the problems? 3 4 5 6 7 If women are a part of the target-group have they been involved in the identification of problems? Is it explained how the scheme will help in solving these problems? Have special measures been proposed to solve the problems of Women? Have objectives been formulated in precise and correct terms? Are objectives of the scheme related to the overall objectives of the sector? Are the objectives of the scheme related to the WID-objectives of the sector, the Five Year Plan and / or other relevant policy papers? Has the target-group been well defined? (Women/men/boy/girls/landless/small farmers etc.) Have the effects and impact (long term changes): Benefits/disadvantages of the scheme on the development of women been indicated? If yes, summarise findings in working paper.

Yes/No Yes/No Yes/No

Yes/No Yes/No/N.A Yes/No Yes/No Yes/No/N.A

Yes/No

Yes/No

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If possible negative consequences for women have been identified, have 11 special measures been taken to overcome them? Have the effects and impact (long term changes; Benefit / disadvantages) of the 12 schemeon the environment been indicated? If yes, sumarise findings in working paper. Comments by Line Department, if any.

Yes/No

Yes/No

Comments by ADSC/DSC/PDWP, if any

Assessment of PC-1 Comments by the ADSC/DSC/PDWP

Good, needs further clarification, unacceptable

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