Attachment_J.4_Firms_BEE_Interventions_in_Punjab.pdf

Firms Project BEE Interventions in Punjab in Agriculture and Livestock Sectors

AGRICULTURE SECTOR

1. Firms Project engaged an international consultant in 2010 to carry out a study of distortions inherent in the agriculture marketing regime and to recommend a regulatory framework in consonance with international best practices. The report titled Agricultural Marketing Policy Framework contained a full policy and regulatory analysis and a detailed reform matrix covering the following areas:

(a) abolishing of “notified areas” or market committees;

(b) conversion of existing wholesale markets run by government market committees into corporatized entities managed by professional boards;

(c) principle of freedom of marketing enabling private sector markets to be set up in the form of wholesale markets, farmer markets, collection points and consumer/retail markets.

(d) instead of single market channel, multiple linkages between growers, retailers and consumer all across the value chain

(e) an agriculture marketing board consisting of representatives from the private sector, academia, growers, retailers and Government to promote standards in the industry and provide public goods (information, training, linkages)

2. These recommendations were accepted by the Department of Agriculture and stakeholders and Firms Project legal consultant drafted a comprehensive reform law titled Punjab Agricultural Produce Marketing (Development and Modernization) Act. The Chief Minister Punjab reviewed the reform proposal and recommended that a Cabinet Committee give final shape to the Bill. Subsequently, the Bill was reviewed by the Cabinet Committee but a final decision was deferred subject to further consultations with stakeholders.

3. Whilst the new law was being reviewed, Firms Project was asked by the Department of Agriculture to facilitate the entry of private sector stakeholders under the existing law.

Consequently, an approval process containing technical criteria and SOP’s for private sector stakeholders was developed and operationalised through the Punjab Agriculture Marketing Information Service (AMIS). This led to about twelve applications for setting up horticulture markets in Punjab being received and processed by the Department of Agriculture and new markets being set up.

4. During the remaining life of the project and on the request of the GoPb, further technical assistance to the Department of Agriculture is planned for:

(a) assisting private sector entrants in setting up markets;

(b) drafting of subsidiary legislation to meet the objectives of the reform law;

(c) corporitisation of public markets; and

(d) institutional support for the agriculture marketing board.

5. In the subsidiary legislation phase, Firms project plans to evolve a PPP mechanism specifically tailored to setting up new horticulture markets instead of relying on the generic infrastructure Act in the province. These rules will provide for the variety of PPP arrangements envisaged (i.e.

respective contribution of the parties), bids, pre‐qualification, selection, security, termination of agreement and vesting of project

LIVESTOCK SECTOR

1. The Firms Project has provided comprehensive policy reforms that are aimed at rationalizing the role of the public sector and creating space for the private sector. A Policy Review Report prepared for the Government of the Punjab by Firms comprised policy and regulatory analysis and a detailed policy matrix that recommended reforms to be adopted in the following functional areas:

(a) Disease Surveillance and Control

(b) Disease Treatment

(c) Vaccine Production

(d) Feed Production and Monitoring

(e) Extension Services

(f) Breed Improvement

(g) Research and Development

(h) Livestock Marketing

(i) Meat Processing and Value Addition

(j) Commercial Livestock Production

(k) Animal Welfare

(l) Rangeland/Forest Management

2. In view of the comprehensive nature of reforms recommended by Firms, the Punjab Livestock

Department requested for reforms to be prioritized so that they could be implemented in phases. Acting on this request, Firms prepared “Prioritized Policy Reforms” for the Department which contained long term policy reform proposals as well as short to medium term strategies in the following areas:

(a) Government Commercial Farms

(b) Curative Services

(c) Vaccine Production

(d) Slaughterhouses

(e) Cattle Markets

(f) Animal Health and Welfare

(g) Social Protection

3. Firms project was requested to carry out a review of legislation proposed by the Government of the Punjab. In addition to the existing legal framework governing the livestock sector in Punjab, draft laws that were reviewed by the legal expert engaged by the Firms Project are as follows:

(b) Cattle Market Rules

(c) Quality Meat & Slaughter Regulation Act

(d) Milk and Meat Safety Act

(e) Animal Health Act

(f) Animal Biologic Board Act

4. Based on Firms Project recommendations, the Government of the Punjab requested the Firms Project to assist in developing a comprehensive law for regulation of slaughterhouses and meat processing in the Province. A draft law titled Punjab Quality Meat & Slaughter Control Act,2012 was prepared by the legal expert engaged by the Firms Project and was accepted by the Punjab Livestock Department. The draft law has entered into the legislative process and is presently undergoing departmental review prior to it being forwarded to the Punjab Law Department.

5. The Firms Project has received a request from the Punjab Livestock Department to review the legal framework governing Animal Welfare in the Province. This activity is presently underway.

6. Firms highlighted the absence of a PPP framework for development of livestock infrastructure, services and facilities, and envisage the provision of technical assistance to develop a PPP mechanism for the Punjab Livestock Department. Consequently Firms is working in this area and their recommendations include key actions and milestones for developing PPP instruments in various areas. Appended below are the short‐medium term recommendations given by Firms for enabling PPPs in Government Commercial Farms. Similar recommendations have also been made for Vaccine Production, Cattle Markets and Extension Services.