PAKISTAN RURAL MARKET
Businesses thriving on rural market
By Mohiuddin Aazim |InpaperMagzine February 14, 2011 (4 weeks ago)
A SURGE in the agriculture incomes, spurred by high commodity prices, over last few yearshas benefited the industrial economy and services sector in many ways.
Companies providing farm inputs like fertilisers, selling tractors, or engaged in processing andmarketing of food products, or in trading in commodities, are performing better in an otherwisenot so promising growth in the manufacturing sector.Capacity expansion in fertilisers manufacturing is taking place as increased income levels in ruraleconomy has stimulated demand. Launching of Fatima Fertilizer Company last year is anexample. Earnings of companies catering to farm sector are also on the rise.Emboldened by huge profits earned in recent years, Engro Chemicals Pakistan is planning abillion dollar investment overseas. Fauji Fertiliser Company and Fauji Fertiliser Bin Qasim, bothhave also made enormous profits over last two years. And Millat and Al-Ghazi have increaseditheir sales of tractors.With increase in domestic support prices of food crops and with rise in international prices ofagricultural commodities, the appetite and production of agricultural machinery has grown. InFY10, double-digit growth was seen in manufacturing of chaff cutters and power looms andproduction of sugarcane machine surged 68 per cent. Food industry has received fresh domesticinvestment in such areas as grading, processing and packaging of citrus fruits and mangoes and inexpansion of processed meat and poultry projects.The launching of Meat One³a Karachi-based chain of retail meat outlets comes handy as anexample. Similarly, 25 tons of meat were exported from Punjab were exported to Malaysia