Sindh floods cause $7 billion losses

The floods triggered by heavy monsoon rains in Sindh have caused an estimated loss of $7 billion to the agrarian economy of the country as over 2.5 million bales of cotton, 2 million tons of Irri-6 rice, 4 million tons of sugarcane and many other small crops have been destroyed besides, killing 0.1 million cattle head in the province.
Agriculture experts are of the view that current rainy spell, which started on August 13, has not only resulted in the death of nearly 100 people but also destroyed standing crops on 10 million acres of land out of a total 14.2 million acres in the province.
They said that so far the floods have destroyed 2.5 million bales of cotton, two million tons of Irri-6 rice, 70 percent of sunflower, 80 percent onions, 70 percent tomatoes, 90 percent green chillies along with other crops as 22 districts out of 23 were badly affected in the province. The recent floods have severely hit Mirpur Khas, Badin, Tando Muhammad Khan, Umar Kot, Dadu, Ghotki, Hyderabad, Jacobabad, Jamshoro, Khairpur, Larkana, Matiari, Mirpurkhas, N.Feroze, Sanghar, Nawabshah, Shikarpur, Tharparkar, Thatta and Sanghar districts of the province.
Talking to Business Recorder, Qadir Bux Baloch, a former Agriculture Development Commissioner, Ministry of Food and Agriculture, said that the floods have destroyed entire lower parts of the Sindh province, where Irri-6 paddy, cotton and chillies had been cultivated. Quoting figures provided by traders of fruits and vegetables market Karachi, he said that before floods fruits and vegetables traders were daily receiving about 800-1000 truckloads of fruits and vegetables, but now the figure has reduced to 250.
After the floods, onions and tomatoes prices have jumped to Rs 70 per kg from Rs 35-45 per kg, which according to him would reach at Rs 150 per kg in next few days due to low supply and high demand. He added that Pakistan may have to import onions and tomatoes to meet the domestic demand.
Nabi Bux, General Secretary, Sindh Chamber of Agriculture, said that the current destruction to the agriculture sector could be averted if the federal and provincial governments had constructed water reservoirs and timely repaired the damaged drainage system. Provincial and federal governments have not learnt any lesson from the destruction of August 2010 floods which caused severe loss to the economy.
He said that average cultivation cost of per acre of land stands at Rs 50,000 annually and floods have affected a total 10 million acres of land in 22 districts out of 23 in Sindh. He said that according to the estimates of the Sindh Agriculture Chamber total loss to agriculture and livestock of the provincial economy stands around Rs 700 billion.
He said that the province was producing around 3 million tons of Irri-6 rice and floods have badly damaged the crop, adding that rice production in the province would decline to 1 million tons against set target of 3 million tons, while the cotton production would decline to 05-1 million bales against set target of 4.5 million bales in the province.
"Pakistan annually exports nearly 2 million tons of Irri-6 rice to different countries especially to gulf region and last year it exported Irri-6 rice worth $1.1 billion. This year Pakistan would not be able to export Irri-6 rice and the economy would suffer a loss of $1.1 billion", Nabi Bux added.
"The government was expecting 4.5 million bales. So cotton production target would not be met in the province. Sindh would hardly produce 0.5-1 million bales of the cotton this year", he said. About 80 percent cotton crop in Mirpur Khas, 85 percent in Badin, 85 percent in Tharparkar, 60 percent in Umarkot, 60 percent in Tando Allah Yar and Tando Muhammad Khan, while 10 percent sugarcane crop in Mirpurkhas, 20 percent in Tharparkar, 10 percent in Umarkot, 10 percent in Tando Muhammad Khan and 15 percent in Badin has been damaged. Total damage to the rice crop in the province is around 80 percent, while tomato crop in lower parts of Sindh has been completely destroyed.
Kunri, which is largest chillies producing area as well as market of the Asia is completely under rain water and entire chillies crop worth millions of rupees has been destroyed. Naseem Usamani of Cotton Ginner Association said that as per their estimates current floods in Sindh have damaged cotton crop on a huge area and cotton production of the province would remain around 2-2.5 million bales against set target of 4.5 million bales. He said that this situation would increase commodity price substantially at international level as well as at local level. He said the economy has suffered an estimated loss of Rs 8 billion as the huge amount of cotton crop has been destroyed.