Hundreds of livestock farmers have lodged their strong protest against stoppage of payment of mark-up by the Pakistan Dairy Development Company (PDDC) against loans obtained by these growers from different commercial banks under a tripartite agreement between the PDDC, growers and the Banks.
Some 415 farmers were registered in the PDDC project ‘Doodh Darya’ and as per the tripartite legal agreements with the dairy farmers and the financial institutions, the Company had to bear the mark-up on the loans taken by dairy farmers from financial institutions for five years. While on successful implementation of Dairy Farm practices for three years these farmers also become entitled to 50 per cent grant of the total loans. During this period all these dairy interventions has to be fully supervised by the field staff of Dairy Pakistan as per agreement terms.
Nevertheless PDDC which got extension for two years on August 16, 2011 after remaining in darkness about its fate when agriculture, livestock and food ministry was devolved to provinces under 18th amendment is yet to be issued funds to meet the obligations and commitments made by it with the growers and financial institutions under its loaning projects.
It may be recalled that PDDC was established in 2005 as a Special Initiative of the Prime Minister and is registered under section 42 of the Company’s Ordinance 1984. The Company was later transferred under the MINFA when the devolution process started.
The objective of the Company was to introduce best dairy practices of leading dairy countries of the world with a view to bring “The White Revolution – Doodh Darya” in Pakistan. The White Revolution – Dood Darya’ project worth Rs 2.654 billion was approved by ECNEC in year 2007. At the moment six active Dairy Development Programs, Model Farm Program, Cooling Tank Program, Community Farm Program, Bio Gas Program, Rural Services Provider Program and Training & Extension Programs are under implementation.
PDDC entered into tripartite legal agreements with the dairy farmers and the financial institutions, under which the Company would bear the markup on the loans taken by dairy farmers from financial institutions for 5 years. While on successful implementation of Dairy Farm practices for three years these farmers will also be entitled to 50 percent grant of the total loans. During this period all these dairy interventions has to be fully supervised by the field staff of Dairy Pakistan as per agreement terms.
Total loans availed by dairy farmers under this programme were Rs 553 million, while the total markup to be paid by PDDC up till June 2014 is Rs 214 million. Similarly in Bio Gas Program and Rural Service Provider Program grants are also due. The total grants payable up till June 2014 are Rs 83 million, sources added. Sources said that the Company represents a very substantial investment by the Government of Pakistan for the development of dairy sector, which is now approximately Rs 1.20 billion for Horizon One and Horizon Two Projects and abandoning these projects at this stage will result in wastage of all the investments made so far. PDDC dairy initiatives have also stimulated confidence in rural lending institution, which in the past have avoided lending in livestock and dairy sector. There are also zero defaults and failures under this programme, the sources claimed.
The sources said that winding up of PDDC at this stage will result in termination of 200 trained work force of the Company, which is in violation of the government policy of protecting employments of all the staff of ministries/autonomous bodies, being devolved. Talking about the financial implications of winding up of PDDC by June 30, 2011, the sources said that it would immediately require a total of Rs 447 million to clear the all the dues, including Rs 214 million under the head of markup, Rs 83 million as grants to dairy farmers as per tripartite agreements and operational expenses (payable/winding up process) that amounts to Rs 150 million. Citing all these facts, the Ministry in its summary had asked the government to allow PDDC to continue implementation of its project till its natural age, sources concluded.
