AGRIBUSINESS SUPPORT FUND

Grant Application Review Form

Application Number Date Application received by ASF Grant Category Applicant Name Applicant Address Estimated Cost of the project as proposed by the applicant (Rs) Applicant Share (Rs) Applicant's Share Confirmed (Yes/No). If No, provide details Grant Amount applied for (Rs) Summary of Applicant's Existing activities

Purchase of BDS by FEG Apex Enterprise Group Khenwianwala Village Khewianwala, Tehsil PD Khan District Jhelum 1,061,750 695,965 Respective RSP i.e. AKRSP has confirmed applicant's share. Beside this grants are given on reimbursement basis. Hence there is no risk about 365,785 The members of the group are involved in production of table potato since 10 year on individual basis.Due to unavailability of quality potato seeds their yeild per kanal of table potato is decreasing every year thus incuring heavy losses to the farmers. Similarly due to demand and supply mechanisim they some time sell their table potatos on throw away prices. The members of the group want to diversify their farming practice and want to start a business which could give them good returns. They are fully awared about the potential of potato seed production in their area but due to lack of know how about seed production they are hesitating to start this business on individual basis. Hence they formed a group to share their expertise and resources and also share the risk and reward of this business. Purchase of Basic II potato seeds by the group with consultation and approval of Federal Seed Certification and Registration Department (FSCRD). 7 day training of farmers in potato seed cultivation and management by a seed expert. Actual cultivation of potato seed. Day to day management of the crop by the farmers in close consultation and advice of seed expert. Inspection of the crop by FSCRD staff. Certification of the seed by FSCRD. Picking, grading and storing of the seed by the farmers with on the job advice by the seed expert. Packing of the seed in attractive printed bags by the farmers. Marketing of the seed in local and national markets.

Summary of Proposed Project

Expected Start Date of the Project June 2008 Expected End Date of the Project November 2008 Expected Outputs from the Project with Means of Verification (Including Projected increase in Income and Costs) Out Puts/ Deliverables Farmers trained in potato seed production Certified I potato seed produced Potato seed (Certified I) marketed Indicators Means of Verifications 15,000 kgs of potato seed (Basic Training Report & Evaluation form by II) cultivated by farmers trainer and Participants respectively Certification of 90,000 kgs of potato seed as certified I. 90,000 kgs of potato seed (Certified I) available in market. Bills of Purchases, Sales receipts, visits during production Samples, Pictures, Visit reports

Net profit of the farmers Employment generated Proposed Service Provider 10 Women NRSP

(311,750) Records Checking/ Books of Accounts Interview with applicants

Recommendation I, the undersigned, have reviewed the above application for a grant from Agribusiness Support Fund (ASF) and certify that: (i) the applicant and his/her project satisfies ASF eligibility criteria

(ii) the applicant has provided all required information, (iii)theavailabilityoftheapplicantsfundsforco-financingtheprojecthasbeenconfirmed,and (iv) the proposed service provider is either an approved ASF service provider or has been assessed as appropriate and competent to provide the specified service. I, therefore recommend the application for review by the Appraisal Panel Prepared & Analyzed By Supervised & Recommended By Date Comments of GM/ CEO Muhammad Abdullah, Management Associate. Tahir Mahmood, Financial Analyst.

Decision of Appraisal Panel: o o o Approved (---------) Rejected Deferred (----------) (----------) Any Comments/Conditions of Appraisal Panel: Favour: (1) Against: (1) (2) (2) (3) (3) (4) (4)

Khalid Khan, CEO ASF Chairman Appriasal Panel

Dr. Rashed ul Qayyum Member Appraisal Panel

Syed Adeel Ahmed Kakakhel Member Appraisal Panel

Malik Ali Waseem Member Appraisal Panel

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Full Legal Name CNIC or Company Registration No Landline (PTCL No) Fax number Cell No Email Address Official Registered Address Postal Address (For Correspondence)

Applicant Details Apex Enterprise Group Khenwianwala

Nil 3466482348 Nil Village Khewianwala, Tehsil PD Khan District Jhelum Village Khewianwala, Tehsil PD Khan District Jhelum

9 10 11 12 13 14 13 14 15 16 17 18 19 20 18

Enterprise / Individual Operation or Activity Details Sector Potato Production and Marketing Apex Enterprise group Legal Status Nil NTN Ownership / Management Structure AEG Name of Contact Person Ghulam Rasool Position of Contact Person President Year operations started Feb-07 Total Value of Assets (Rs) 1,500 Total Value of Capital (Rs) Nil Total Value of Liabilities Nil Number of full-time employees Nil Main Business Activities: Potato Production and marketing Description of product range: 900 kg Markets Served: Village level & distt. Level. Any Other information relating to existing operations: Nil Proposed Service Provider NRSP Akhlaq H.No 46 F6/4 Islamabad 512822324 512822779 3005471267
akhlaq@nrsp.org.pk www.nrsp.org.pk

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Name of Organization Contact person Business Address Phone No Fax No Cell No Email Web Site

BDS Usage Survey 27 Have you ever utilized the services of a BDSP before? Nil 28 Have you utilized the this particular BDSP's Services in the Past Nil 29 If Yes, Please provide details including details of deliverables & service charges:

Previous Relationship with ASF 30 Have you previously applied for ASF Grant(s)? Nil 31 If yes, mention application date(s) and grant amount(s) applied for Nil 32 Whether Approved or Rejected Nil Bank Details UBL PD Khan PD Khan Branch PLS 0101969-8 Ghulam Rasool and Wialyat 5,000 DDB 206359 Declaration by Applicant
I, the undersigned, duly understand , affirm and certify that: (i) I am fully authorized to represent my business and/or business associates and to sign all documents on its / their behalf. (ii) I am completely aware of the applicable terms & conditions in applying to ASF for grant. (iii) I and/ or any of my business associates are not disqualified from applying for a grant due to any of the reasons provided on ASF website http://www.asf.org.pk/ineligible.php (iv) I have access to and will utilise the funds specified in this application that will be used to finance the contribution of the applicant to the cost of the project to be financed. (v) I and my business associates have neither applied nor received any grant / subsidy for the same services, from sources other than ASF. (vi) I have neither already acquired/availed nor have initiated the process of acquisition of the desired services, for which ASF grant is being applied. (vii) Security deposit will be forfeited by ASF if I/we fail to complete the activities for which the grant was provided. Security deposit will be refunded upon completion of project. (viii) I shall submit all required documents and cooperate with ASF in pre-assessment/verification process. (ix) ASF reserves the right to accept or reject any application, at any stage. ASFs decision to my/our application will be final and incontestable and applicant will not appeal against the decision. (x) the information provided in this application is correct to the best of my knowledge & belief and I have not intentionally concealed any material fact, which otherwise would have resulted into disqualification of this application.

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Bank Name Branch Address Account Name Account Number Account Signatories Processing Fee (To Be Refunded) Check / DD No #

Name Designation Signature & Official Stamp

Ghluam Rasool President

Date

8-Jul-08

Project Proposal Specific Components of BDS Services to be Purchased:

Capacity Building of farmers in Potato Seed gowing on Commercial Scale. Capacity Building of farmers in Potato Seed Management. Purchase of Basic II potato seed from a private Limited Company (Moutain Seed Leaders) and production of potato seed on commercial scale. Introduction of customer applealing printed packaging material Certification of Potato Seed by Federal Seed Certification & Registration Department. Capacity Building of farmers in Picking, Grading and Storing of Potato Seed. Marketing of the produce in local and nationa markets.

Rationale (Need / Problem Statement)

According to researchers and agriculturist the cilimate and soil of Northern Areas and Chitral are most suitable for production of various Vegetable Seeds but due to lack know how about seed production and latest farming techniques full potential of the area couldn't be exploited in Seed production. Farmers of the area face problem in geting quality seeds of vegetables.20% of farmers plant their own saved seed, while rest of the people plant poor quality seeds. For table potato cultivation they usually buy ration / table potato. These ration / table potatoes are purchased from random open vegetable markets / sabzi mandis and are not suitable to be used as seed potatoes.This poor quality seed reduces the yield of production and ultimately reduces the income of poor farmers, who dependent on the potato crop for livelihood. Other problems faced are lack of seed potato production practices and lack of marketing know how. These constrains block farmers from prospering, but these constraints can be minimized through proper technology transfer to poor farmers. followings are the major constrains in seed potato production.. Un availability of certified seed potato. Lack of knowledge about researchers /seed potato producers.. Lack of knowledge in seed potato production. Lack of knowledge in seed potato marketing / markets. Lack of knowledge in certification. Lack of processing and storage.

Introduction of the Group

AKRSP is fully aware about the potential of Northern Areas and Chitral in vegetable seed production. Hence to exploit this potential staff of AKRSP met with the farmers of project area in February 2008 and informed them about this potential of seed production. They were also informed about the 50% support of ASF in services. The farmers of the village in their meeting in March 2008 decided to form a farmer group and invited other farmers having expetise in table potato cultivation to join this group. Finally ten farmers of the village joined this group in April 2008. Since last 10 years these 10 farmers were engaged individually in trading and production of table potatoe and now they want to diversify their farming practice and want to go in the business of potato seed production for which they are looking for ASF support .

Main Activities Involved In the Project

Purchase of Basic II potato seeds by the group with consultation and approval of Federal Seed Certification and Registration Department (FSCRD). 7 day training of farmers in potato seed cultivation and management by a seed expert. Actual cultivation of potato seed. Day to day management of the crop by the farmers in close consultation and advice of seed expert. Inspection of the crop by FSCRD staff. Certification of the seed by FSCRD. Picking, grading and storing of the seed by the farmers with on the job advice by the seed expert. Packing of the seed in attractive printed bags by the farmers. Marketing of the seed in local and national markets. Market Overview: Northern Areas of Pakistan, comprising the District Gilgit, Diamer, Ghizer, Astore, Skardu and Ghanche, stretching over an area of approximately 72,000 square kilometers in the north of Pakistan and having a population of about 1.5 million people, emerges as an important area due to its geographical location and unique culture. The Northern Area is extended from 35-37North latitudes and 72-76East longitudes. The area is mostly mountainous thus leaving very little cultivable land for the inhabitants to produce agricultural products on a larger scale. Geographical boundaries of Northern Areas link with China, Afghanistan, Tajikistan, Kashmir and India. Agriculture/farming is the main occupation of almost 75% of the inhabitants living in the rural areas. Much snowfall occurs in high mountains about 16000 ft above sea level. Melting of the snow at the peaks of mountain is the source of substance for the life of these areas and also for agriculture of the country. Large variation in temperature is the typical feature of climate, which enables a wide range of crops to grow. Potatoes are mainly grown during summer from May onward and harvest in October with an estimated production of about 73,000 tons and total area potato cultivated is about 6483 hectares during 2001-03, having market size of about Rs.871.92 million. To produce this much quantity of potato the total seed demand for this area worked about to be 100,000 bags(100 kg bags) or 200,000 bags of 50kg. And this is fact that the mention quantity of seed demand is gradually increasing year by year. Quality seed potato production requires special attention and skill to maintain genetic purity of a crop through proper follow up its various stages of development. In case of seed potato production. it becomes more important in the context of having disease free quality seed. Market Demand / Requirement: Potato is the most important crop amongst vegetables and grown on 110,000 hectares in Pakistan for which about 220,000 tons of seed is required every year. It has attained the status of cash crop especially in Northern areas.The estimated seed requirement of Northern areas is about 9000 to 10,000 tons but its production require special attention Agriculture is the main stay of the economy of Northern areas. It has brought social changes particularly in rural areas. According to estimate, a total of 50,000 tons of potato is marketed which is amounted to be a sum of 375,000,000 and potential is even more. Outcomes & Deliverableswithverifiableindicators(e.g.Increaseinquantity,increaseinquality,employment generation, increase in sales revenues etc):

Outputs
Farmers trained in potato seed production Certified I potato seed produced Potato seed (Certified I) marketed Net profit of the farmers Employment generated

Indicators
15,000 kgs of potato seed (Basic II) cultivated by farmers Certification of 90,000 kgs of potato seed as certified I. 90,000 kgs of potato seed (Certified I) available in market. -311,750 10

Expected Value Addition (Project Objectives):

Please see Revenues sheets for value addition and expected income The process of producing Pre-basic-I, Pre-basic-II, Basic I and basic II is very complicated, expensive and very risky so the farmers will purchase basic-II potato seed and cultivate it to produce certified I potato seed. IMPACT The project benefits would be shared by all members of the farmer group in the shape of an increased awareness of the potato seed production and increased income out of small piece of land Economic Impact The project will generate number of social and economic benefits. These are as below; Empowermentofthefarmingcommunitiesbygivingthemachancetoworktogetherfortheirmutualbenefit. Theseedpotatoproductionwillfetchbetterprices Expected Start Date of the Project Expected End Date of the Project Time Frame & Significant Milestones: Activity Purchase of Potato seed (Basic II) Training of farmer in potato seed production & management Sowing of potatoes Inspection of Crop Harvesting Certification Marketing June 2008 November 2008 Time End of May 2008 Jun-08 Jun-08 june, July and August 2008 Oct-08 October 2008 November 2008

Personnel Responsible for the Project: The group General Secretary under the guidance of the Consultant will look after all the activities of this project. Financing 1,061,750 Project Cost 695,965 FEG Share 365,785 Grant Amount Applied for Sources of Co-financing Funds All the expenses will be born by us from own sources and reimbursement thereafter will be claimed from ASF. Bank Balance Further Amount Required from the Group Proof of Availability of Matching Funds

Bank Statement/ commitment of Farmers Assurance from AKRSP

Revenues Generated
Production of potato Seed (Basic II) from 300bags(50kg) of Basic I (Bags 50kgs each) Sale Price per Bag (Rs) Total Revenues from sale of basic II potato seed 600 1250 750,000

Activity Purchase of basic seeds (50kg bag) Screen printed bags Ridge preparation (180 labors @ 300 for one days) Earthing up labor charges Marketing Charges Potato harvesting and Filling and loading Crop management and Grading Training( for 7 days) Transportation charges from lahore to PD Khan Storage charges Fertilizer Transportation charges to store from Kehewanwala to Dheri Crop inspection/Arrangement of logistics for inspectors Certification 1800 bags Grading of Certified Seed Total

Project Cost & Grant Amount Applied for (Broken down by individual activities) Qty Unit Cost in Rs Bags 50 4,000 Bags 600 40 Labors 180 300 Labors 90 300 Labors 600 400 Labors 450 200 Persons 100 1,000 Bags 450 40 Bags 450 300 Bags 25 3,500 Bags 450 50 Times 3 10,000 Bags 450 25 bags 450 50

Total Cost (Rs) 200,000 24,000 54,000 27,000 240,000 90,000 100,000 18,000 135,000 87,500 22,500 30,000 11,250 22,500 1,061,750

FEG Share 132,000 15,840 54,000 27,000 120,000 90,000 50,000 9,000 67,500 87,500 11,250 15,000 5,625 11,250 695,965

ASF Share 68,000 8,160 0 0 120,000 0 50,000 9,000 67,500 0 11,250 15,000 5,625 11,250 365,785

Projected cash flow statement For the period of April, 2008 to October 2008 Description Opening balance (shown in bank statement) Cash inflow Contribution/ (withdrawal) of Farmers Group Contribution by farmers to compensate ASF Grant Grant from ASF Lahore Revenues from sale of potato seed Refund of Demand Draft from ASF Lahore Total cash inflow Total Cash Available Cash outflow Purchase of basic seeds (50kg bag) Screen printed bags Ridge preparation (180 labors @ 300 for one days) Earthing up labor charges Marketing Charges Potato harvesting and Filling and loading Crop management and Grading Training( for 7 days) Transportation charges from lahore to PD Khan Storage charges Fertilizer Transportation charges to store from Kehewanwala to Dheri Crop inspection/Arrangement of logistics for inspectors Certification 1800 bags Grading of Certified Seed Contribution by farmers to compensate ASF Grant Demand Draft to ASF Lahore Total cash outflow Cash surplus(deficit) 5,000 5,000 690,965 359,500 331,465 227,000 470,250 10,000 465,250 34,000 431,250 262,500 455,785 399,535 135,000 87,500 22,500 10,000 10,000 10,000 11,250 22,500 365,785 18,000 90,000 100,000 54,000 27,000 240,000 April 34,793 May 690,965 June 331,465 July 470,250 August 465,250 September 431,250 October 455,785

661,172 365,785 287,035 5,000 661,172 695,965 0 690,965 365,785 697,250 5,000 475,250 0 465,250 287,035 718,285 78,750 534,535 78,750

200,000 24,000

November 135,000

750,000

750,000 885,000

135,000

135,000 750,000

Projected Profit & Loss Statement April 2008 to November 2008 S.No Description Revenues Total Revenues from sale of basic II potato seed Cost of production Purchase of basic seeds (50kg bag) Screen printed bags Ridge preparation (180 labors @ 300 for one days) Earthing up labor charges Marketing Charges Potato harvesting and Filling and loading Crop management and Grading Training( for 7 days) Transportation charges from lahore to PD Khan Storage charges Fertilizer Transportation charges to store from Kehewanwala to Dheri Crop inspection/Arrangement of logistics for inspectors Certification 1800 bags Grading of Certified Seed Net profit Amount (Rs)

750,000 1,061,750 200,000 24,000 54,000 27,000 240,000 90,000 100,000 18,000 135,000 87,500 22,500 30,000 11,250 22,500 -311,750