Delhi among leaders in cheap farm loans
Delhi and Chandigarh may hardly have any land left for agriculture but when it comes to availing cheap farm loans, they beat top agricultural states of the country. Residents of the two cities took agricultural loans worth over Rs 32,400 crore in 2009-10, more than UP, West Bengal, Bihar and Jharkhand put together.
The four agrarian states collectively got less than Rs 31,000 crore in 2009-10.
HC orders registration of case against VCs of Pantnagar Univ
Uttarakhand High Court has ordered the police to register a case against the current and former Vice Chancellors of GB Pant University of Agriculture and Technology for allegedly misappropriating funds. Single-member bench of Chief Justice Barin Ghosh yesterday ordered the Udham Singh Nagar Senior Superintendent of Police to register a case against Vice Chancellor of Pantnagar varsity Prof B S Bist, his predecessor Prof P L Gautam, former and current Financial Controllers and three contractors supplying labourers to the varsity, said Ranjan Kumar Joshi, the petitioner in the case. Joshi moved to High Court after the district police refused to act on his complaint. Joshi has alleged that VCs and Financial Controllers awarded contract of supplying labourers to three contractors in violation of norms of the varsity and misappropriated funds worth lakhs of rupees.
| CAG's agri report slams MP govt |
The Comptroller and Auditor General (CAG) of India has cornered the state government, which had recently demanded a special package of Rs 2,500 crore for frost-hit farmers, in its report tabled in state Assembly today.
The CAG has found gross irregularities, non-implementation of schemes, weak budgetary and expenditure controls in both original and supplementary budgets, rush of expenditure at the close of the financial year and underutilisation of central assistance.
“The targets set in the Tenth and 11th Financial Five Year Plans for production of cereals, oilseeds and pulses were not achieved. The performance of quality testing laboratories, soil surveys, soil testing and training was far below the targets. There was no scientific assessment of manpower requirement and deployment. Internal audit was inadequate and ineffective. Monitoring was unsatisfactory as prescribed, departmental inspections were not conducted and district level committees were not functional,” the CAG report said.
In its report the CAG pointed out, supplementary provisions of Rs 42.4 crore obtained during 2005-2010 were proved unnecessary. Scheme funds amounting to Rs 133.5 crore were lying in the bank accounts at various levels and a total unutilised amount of Rs 28.2 crore was lying with other agencies or departments.
“The department has failed to achieve the targets of production of foodgrains set in the Tenth and 11th Five Year Plan,” the CAG observed, “substandard seeds, fertilizers and pesticides were sold to cultivators. The prescribed ratio of 4:2:1 in consumption of nitrogen, phosphate and potassium was not maintained. Soil surveys were not conducted and there were substantial shortfalls in soil testing. Shortage of technical staff affected implementation programme, poor man-power management led to irregular posting in other department and excess staff over the sanctioned strength.”
Against the budgetary provisions during 2005-2010, the CAG noted, there were savings ranging from 19 to 40 per cent, off-Budget Central assistance worth Rs 27.7 crore remained unutilised as on March 2010, Budget estimates were submitted with delays ranging from 30-75 days, original Budget provisions of Rs 40.8 crore lapsed without utilisation and supplementary provisions of Rs 42.4 crore proved unnecessary. Moreover, the CAG report said, injudicious re-appropriations or surrenders resulted in excess expenditure of Rs 11.4 crore over the remaining Budget provisions.
The CAG report further observed the State Institute of Agriculture Extension and Training (SIAET), Barkhedi Kalan (Bhopal) was nominated by department of farmers welfare and agriculture development to keep the funds released by the government of India pertaining to the off-budget schemes like National Food Security Mission and Appraisal of Agriculture Technology Management Agency (ATMA) in bank accounts. The CAG further observed that the director of the department, in addition to the above two schemes, also deposited the amount of state share and other scheme funds in the account of SIAET and the funds were released through cheques to the districts by SIAET on the basis of sanction orders by the director. “At the end of March 2010 an amount of Rs 112.8 crore (including grant-in-aid and interest of Rs 3.5 crore) were lying in bank account of SIAET, of which Rs 96.5 crore relating to Rashtriya Krishi Vikas Yojna was drawn by Director of the department from treasury during 2007-2010. Additional director, SIAET stated that the funds could not be released to districts as sanction orders were not issued by the directorate. Keeping of funds of other schemes in the bank account of SIAET was irregular,” CAG report said.
NABARD estimates Rs 3,204 cr credit plan for J&K
The farmers are provided short-term credit for the production of crops by the Public sector banks, Cooperatives and RRBs at concessional rate of interest at the rate of 7 per cent per annum. Government of India provides 2 per cent interest subvention on crop loans up to Rs 3 lakhs on prompt repayment, Sukhdeva said. Interest subvention to cooperative banks and RBs and farmers is routed through NABARD, he said, adding for the year 2009-10, Rs 32.40 lakh has been released to RRBs towards interest subvention. To increase the productivity and production and for creation of awareness among farming community, NABARD initiated farmers centered programmes like farmers' club, development of seed village, training for farmers, exposure visits within and outside the state to see the agricultural development, 300 farmers' clubs formed by the banks and Kissan Vikas Kendras (KVKs) have been supported by NABARD, he said. NABARD implements Government of India (GoI) schemes such as Dairy Enterprenuership Development Scheme (DEDS), Integrated Development of Small Ruminants and Rabbits (IDSRR), Marketing Infrastructure (MI), Rural Godown and Cold Storage schemes in the state and providing capital subsidy, Sukhdeva said. Under DEDS, about 4000 animals with a cost of Rs 10 crore and subsidy of Rs 3 crore have been provided to the farmers in rural areas of J&K during 2010-11, he said, adding under IDSRR scheme NABARD has provided training to 287 farmers for rearing of goats and sheep. NABARD supports for upgrading the skills for creating employment opportunities to rural youth under farm and non farm activities in association with Non Governmental Organisations (NGOs) and government departments, Sukhdeve said. He said during 2010-11, NABARD supported 28 Skill Development Programme to improve the skill of 700 unemployed youth and granted grant of Rs 12 lakh. NABARD supports the state government in infrastructure creation in rural areas for the projects having influence in improving productivity and production of agriculture crops, employment generation, marketing of rural products, social services and rural connectivity, he said. During 2010-11, NABARD has sanctioned Rs 902 crore for 360 projects covering 290 roads and bridges projects, five Flood protection projects and six minor irrigation projects, 17 water supply schemes and 42 health care projects. The cumulative number of rural projects sanctioned since introduction of Rural Infrastructure Development Fund is 4,532 under various sectors viz 1,887 Rural Roads and bridges projects, 2187 social sector projects which include water supply, health and schools. 378 irrigation and flood protection work projects and 80 projects under agriculture-related sectors, he said.
India offers expertise to modernise sugar industry in Ethiopia
India, the world''s second largest sugar producer, has offered expertise and latest technology in sugar processing to Ethiopia.
"We have offered to provide our expertise and latest technology to modernise the sugar industry in Ethiopia," Food Minister K V Thomas told reporters after meeting the Ethiopian sugar delegation, here.
At present, sugar production in Ethiopia is around three lakh tonnes and the Horn of Africa nation plans to scale up its sweetener output in the coming years.
The delegation led by Abay Tsehaye, Director General of Sugar Corporation from Ethiopia, met Thomas and sought assistance from India in various fields of agriculture including sugar processing.
Thomas assured the delegation that Kanpur-based National Sugar Institute will host students and technicians from Ethiopia to make them familiar with latest sugar processing technology available in India.
He also said that experts would also be send to provide spot training in Ethiopia.
Indian investment in Ethiopia has been largely through private players and stands currently at USD 4.4 billion. The two countries have strong relationship in agriculture, he added.
India''s sugar production is estimated at 24.5 million tonnes in the 2010-11 crop year (October-September), as against demand of 22 million tonnes.
CACP suggests PPP model for foodgrains procurement
The Commission for Agriculture Costs and Prices (CACP) has suggested the government rope in the private sector along with state agency FCI for undertaking procurement of foodgrains from farmers.
"If we are thinking of public-private partnership (PPP) model in building warehouses, why don''t we have a PPP model in foodgrains procurement also? This is the biggest idea that the commission is floating to the government," CACP Chairman Ashok Gulati said in an interview to PTI.
The PPP model is necessary to enthuse competition to the FCI, which has not been able to procure foodgrains at Minimum Support Price (MSP) level in many parts of the country, he said.
The entry of private sector will not only enable farmers get MSP but also solve storage problems, Gulati said.
"Let the farmers decide whom to sell their produce. The government can open up the procurement operations to private companies like ITC, Hariyali Kisaan Bazaar, Tatas and Birlas and also cooperatives like IFFCO and Nafed," he said.
The CACP has made this suggestion in its recent report submitted to the Agriculture Ministry. Founded in 1965, it is is a statutory body and advises the government on the pricing policy for major farm items.
Gulati recommended the government allow the private sector into procurement operations on the same terms and conditions given to Food Corporation of India (FCI).
"If private firms do better job than FCI at lower cost, that would be their profit. The Centre should just give the FCI cost and ask companies to deliver foodgrains wherever the government requires," he said.
Presently, procurement and distribution of foodgrains is being undertaken by the FCI on government''s behalf. It procures on an average around 55 million tonnes of rice and wheat through more than 14,000 procurement centres annually.
Gulati pointed out the FCI has still not set up procurement centres in many parts of the country. As a result, farmers are compelled to sell below the MSP.
For instance in Eastern Uttar Pradesh, wheat is being sold at Rs 1,020 per quintal, against the MSP of Rs 1,120 per quintal. "If the real market price is below the MSP, there is something seriously wrong," he said.
India-Africa partnership to fight dryland poverty
The International Crops Research Institute for the Semi-Arid Tropics (ICRISAT) today announced the formation of ICRISAT South-South Initiative (IS-SI) to boost India-Africa partnership on agriculture research aimed at tackling poverty in drylands.
Dr Nigel Poole, Chairman of ICRISAT Governing Board, in a statement said IS-SI will build upon ICRISAT's strong India-Africa partnership to scale up its role as the driver of prosperity and economic opportunities in the dryland tropics.
Addressing participants of the Indo-Africa roundtable on agriculture for development in New Delhi, Dr Poole explained that IS-SI will provide the platform for focussed and systematic international partnerships critical for a more effective and inclusive development cooperation between the two continents.
Every one dollar spent on international agricultural research leads to a return on investment of nine dollars worth of economic value in developing countries.
Dr William Dar, ICRISAT Director General, said “IS-SI will open more opportunities for increased and technical support and enhanced public-private people partnerships on research for development.”
“This initiative will also see better policies, more effective institutions, improved infrastructure and better access to markets and to higher quality inputs particularly for dryland farmers in India and Africa,” Mr Dar added.
Dr S.Ayyappan, Director General of the Indian Council for Agricultural Research (ICAR), expressed that this initiative will enhance South-South partnership between India and Africa.
Nabard pilots climate change adaptation plan
The ambitious climate change adaptation project in Ahmednagar district sanctioned by the National Bank for Agriculture and Rural Development (Nabard) will help 25 villages cope with climate change and adapt to impending impacts.
This pilot project is one of significant projects initiated by Nabard in the last financial year in Pune region.
Addressing a press conference, regional general manager P Satish said the climate change adaptation project launched in Ahmednagar district this year will benefit Akole and Sangamner talukas covering an area of 44.47 acres and 23,245 families.
“This is the first project of its kind in the country which seeks to develop knowledge strategies, approaches, measures and processes that would enable vulnerable communities to cope with climate change and adapt to impending impacts,’’ he said.
The project was sanctioned with a grant from Nabard and Swiss Development Cooperation. Advanced weather stations will come up in the area to monitor climatic changes and guide farmers. It will concentrate on watershed development, crop management and increasing green cover for stabilisation of soil and increasing ground water level.
The changes in the region will be monitored for five years and suitable technology for crops will be developed. The farmers will be motivated and helped in shiftting to alternative sources of energy to conserve natural resources.
The project will be implemented in association with India Meteorological Department, social forestry department, Krishi Vigyan Kendra in Mahabaleshwar and Indian Space Research Organisation. This project will help improve food production and conserve environment.
Nabard has also signed a memorandum of understanding (MoU) with Mahatma Phule Krishi Vidyapeeth, Rahuri, for three years. It will collaborate in the preparation of CDs, VCDs, brochures, pamphlets on agriculture and related activities for use by farmers, formation of a farmers-scientists forum, conduct training and implementation of seed development programme for production of certified seeds in the village.
“The link up primarily aims at transfer of technology and scientific advise. We are also looking at collaborating with other universities,’’ said P Satish.
A total of 23,000 new self-help groups were linked to the bank in the last fiscal year and 2,200 new farmer clubs were formed. Now there are 4,900 such clubs in the state. The clubs were formed to facilitate transfer of technology developed by research organisations and also to develop rapport between bankers and developmental agencies with farmers.
Five pilot projects for technology transfer, credit counselling and market advocacy through clubs were sanctioned in Satara, Washim, Pune and Ahmednagar districts. Nabard has sanctioned loans of Rs1,124 crore to state government for rural
infrastructure projects.
Pawar, CACP favour opening up exports
India’s record foodgrains production in 2010-2011 has not only prompted the agriculture minister to pitch in for opening up exports, but the government’s main advisory body on pricing policy for farm goods, CACP, has also favoured allowing export of grains to prevent prices from falling below the minimum support price (MSP).
“There is a fear that with such bumper harvest of grains, which will further add on to the already existing stocks, prices of both wheat and rice can fall below MSP, hence CACP is in favour of opening up exports,” a key official said.
Senior officials from the Commission For Agricultural Costs and Prices (CACP) are believed to have also met Prime Minister Manmohan Singh with their suggestions on allowing grain exports.
India had banned export of wheat since 2007 as government procurement dropped because of low harvest. Exports of non-basmati rice were also banned thereafter.
Meanwhile, agriculture minister Sharad Pawar today reiterated that government should allow exports as production in 2010-2011 is expected to be at an all-time high. “Government of India has to take a serious thought on storage, allocation to states and exports,” Pawar said while releasing the latest foodgrain forecast for the current crop year to June.
Last month, Minister of State for Agriculture Arun Yadav had also indicated the government would lift the ban on exports. India’s foodgrain stocks as on March 1, 2011 is estimated to be around 46 million tonnes, of which around 28.72 million tonnes is rice and 17.15 million tonnes is wheat, much higher than the buffer stocks norms.
India’s food inflation eased to 9.50 per cent in the year to March 19. Trade sources said around 1-3 million tonnes of wheat could be easily exported and it won’t have any bearing on government’s food stocks and grain availability.
IRRI to set up molecular centre for rice
The Director General of International Rice Research Institute (IRRI) Robert S. Zeigler has said that the institute was discussing with the Indian Council for Agricultural Research (ICAR) the possibility of developing an India specific programme of molecular genetic and breeding for rice.
One possibility the Phillipines-headquartered IRRI was looking at was the creation of a single centre in Hyderabad. The other was the setting up of a number of institutions which would be coordinated by the IRRI and the ICAR, Mr. Zeigler said here on Saturday on the sidelines of the forty-sixth annual rice research group meeting at the Directorate of Rice Research of ICAR.
He told the group meeting earlier that eastern India had the greatest potential for rice production as rice-rich Punjab and Haryana would no longer be able to meet the food needs of the next generation. On the progress of field trials undertaken by the IRRI for ‘golden rice'— a genetically modified rice engineered to produce pro-vitamin A, Mr. Zeigler said they gave “wonderful” results. An important announcement was expected this month.
India contemplates tapping carbon credit from agriculture
India is trying to build a case to include agriculture in an estimated global market of $200-billion for carbon credit from the Clean Development Mechanism (CDM).
"We are pressing for carbon credit from agriculture. The Planning Commission on principal accepted the idea in September 2010," NCCSD executive chairman Kirit N Shelat said on the sidelines of a national conference on agriculture and climate change organised by South Asia Forum for Environment and EIILM.
"NCCSD is pressing for it. I was included in a committee on agriculture by the Planning Commission and I hope the 12th plan paper will include this aspect to put pressure on the global platform," senior official of the National Council for Climate Change Sustainable Development and Public Leadership said.
Currently, carbon credit is available only for manufacturing and industry.
Shelat said the CDM norms were designed by the developed countries keeping there interest in mind and where agriculture did not figure in their total share of economy. But, now India has to put pressure keeping its interest with farmers to benefit commercially from agriculture based CDM.
India's average annual greenhouse gas reduction is pegged at 33.21-million credits or nearly 13 per cent of global annual reduction average of 257.28-million, according to the UN Framework Convention on Climate Change data.
If agriculture could be included then this percentage would jump significantly.
Meanwhile, professor Y S Rajan who co-authored the book India 2020 with former President APJ Abdul Kalam said there was need for lifestyle pattern of consumption that would by default help in reducing the carbon footprint.
As an example, he said if everybody began to drink packaged drinking water, the jump in demand for energy which would go into the system of production and distribution, could be imagined.
Haryana, Israel to constitute working groups
Haryana and Israel today agreed to constitute working groups to further promote agricultural cooperation.
Haryana chief minister Bhupinder Singh Hooda, who held a meeting with minister of agriculture and rural development of Israel, Orit Noked in Tel Aviv (Israel), immediately formed a working group of Haryana when the suggestion for the same came from Noked, an official statement said here.
Hooda designated Financial Commissioner and Principal Secretary Agriculture Roshan Lal as head of Haryana's Working Group with vice-chancellor of CCS Haryana Agricultural University, Hisar and Director General Horticulture as its members.
While discussing various issues with the Israeli Minister, Hooda sought the latest technology on water conservation, water harvesting, drip and sprinkler irrigation from Israel and asked for extended co-operation, including visits by experts, for boosting agricultural and horticultural production and productivity in the state.
He invited Israel to set up units in Haryana for the manufacture of plastic films or material, used in poly houses and net houses to make cheap material available to the growers.
Hooda thanked the Israeli Government for active help and know-how in setting up two centres of excellence for fruits and vegetables in Haryana and listed some fields which admitted of greater cooperation between Israel and Haryana.
"I would like to emphasise that since water conservation and water harvesting are areas of prime concern in the water-deficit agrarian state of Haryana, we would like to seek latest Israeli technology in these fields.
Of special interest and significance to us are the Israeli systems of drip and sprinkler irrigation which would enable the farmers of Haryana to irrigate more areas with less water," he added.
Listing out the areas in which there could be extended cooperation between Israel and Haryana, the Chief Minster said Haryana needed planting material from Israel. At the Centre of Excellence for Fruits, planting material is imported for plantation.
However, some varieties are not being imported due to the varietal restrictions imposed by Israel. Their performance being excellent according to global standards, these varieties may be allowed to Haryana. The fruits for which he sought additional varieties are citrus; olives, pomegranate, mango and grapes.
Hooda asked Israel to depute experts at the Centre of Excellence for vegetables to facilitate and ensure continuous technological up-gradation of various crops.
He sought experts for high-tech seedling production; for application of know-how for soil-less production of tomato, cucumber and capsicum; and for post-harvest management handling of produce during production period.
The chief minister invited Israel to set up manufacturing units in Haryana for plastic films/ material used in poly houses and net houses so that ther material may be made available to growers at affordable prices.
He also sought mechanisation/machinery for post-harvest management and processing; collaboration for setting up organic centre; bee centre for breeding, production and training; and support for setting up a Centre of Excellence for flowers in Haryana.
He also evinced interest in technology for use of brackish water for the purpose of agricultural or horticultural crops; technology for treatment of city waste water to use for horticultural crops on the pattern of Israel; and new intervention in the field of animal Husbandry and dairy and fisheries.
"I am sure the Government of Israel will be forthcoming in further extending its hand of help and cooperation to enable Haryana to play a pivotal role in boosting agricultural and horticultural production to satisfy the needs of its people, and of those in the National Capital Region where the state occupies a pride of place," he added.
Expressing his gratitude to the Israeli government, especially Orit Noked, for extending help and know-how in setting up two projects in Haryana, he said, "I can say with reasonable pride and satisfaction that these projects-Centre of Excellence for Fruits in Sirsa District; and Centre of Excellence for Vegetables in Karnal District—are well on way to realising their desired objectives," he remarked.
These projects had been set up under the Indo-Israel bilateral agreement, signed between the Government of India and the Government of Israel in May, 2006, for the promotion of agriculture co-operation.
The centre of excellence for fruits would facilitate introduction of new varieties, help extend fruiting period, solve problems related to root stock, and enable the farmers to carve a niche for themselves in domestic and export markets
India can easily export 3-4 mn tons of wheat: CACP
With government sitting on excess foodgrains stocks worth Rs 43,000 crore, the Commission for Agricultural Costs and Prices (CACP) feels the country can easily export 3-4 million tonnes of wheat to take benefit of higher global prices.
The government had banned wheat exports in early 2007 and rice shipments in April 2008.
"The government godowns have foodgrains stock worth Rs 40,000-43,000 crore over and above the buffer norm. You can unload some quantity of foodgrains either in the domestic market or in the global market.
"Luckily today the export market is good and you can easily export 3-4 million tonnes of wheat," CACP Chairman Ashok Gulati told PTI here.
CACP, which suggests minimum support price (MSP) of 40 agri-commodities, has recommended to the government allowing export of the grain in its recent report submitted to the Agriculture Ministry.
Food Corporation of India ( FCI), the nodal agency for procurement and distribution of foodgrains, has a huge stock pile of foodgrains of over 47 million tonnes as against the required buffer norm of over 25 million tonnes.
India is estimated to have produced a record 84.27 million tonnes of wheat in 2010-11 crop year ending June. Rice output, too, is expected to rise to 94 million tonnes from 89 million tonnes in the previous crop year.
Stating the global market is favourable for exports, Gulati said that current domestic wheat prices stand at USD 225/tonnes as against CIF price (cost, insurance and freight prices) of USD 360-380/tonnes in many countries.
"Opening up of wheat exports can help farmers earn profits. If you allow exports, there will be some lifting of domestic price for farmers and will enable them recover the increasing cost," Gulati said.
There is huge demand from global wheat buyers Egypt and other countries like Sri Lanka and Bangladesh, he added.
Gulati, who is also an agri-economist, said apart from wheat, India has scope for export of rice.
"You can have more margin in rice today than in wheat. Indian prices of rice are almost half to two-third of the international prices," he observed.
The CACP warned that if export of rice and wheat are not allowed now, the government will end up having huge stock of 60 million tonnes plus as on July 1, this year, when wheat procurement would be over.
"If stock are not unloaded, then it will be a repeat of 2002, when we had mountains of foodgrains stock but global prices were very low. So, we had to liquidate stock through subsidising exports," he said.
But today, the government can liquidate a part of the stock for export without subsidy, he noted.
India likely to forecast monsoon rains
Global experts meeting this week are likely to forecast a near-normal monsoon for India, providing international commodities market the first hints of demand and supply in 2011/12 from one of the world’s top producers and consumers of key farm goods.
Failure of monsoons can force India into the international markets as a buyer, pushing up global prices of basic foodstuffs, while favourable rainfall can boost its exports, helping governments throughout Asia to battle food inflation.
Agriculture accounts for a 14.6 percent of India’s GDP and the outcome of the annual June-September southwest monsoons impacts the nation’s economy, which is struggling with high food inflation and a massive subsidy bill for fuel, grains and fertilizer.
A normal monsoon means the country receives rainfall between 96-104 percent of a 50-year average of 89 centimetres during the four-month rainy season, according to the India’s weather office classification. Monsoons also impact demand for gold in India, the world’s top consumer of the metal, as purchases get a boost when farming incomes rise amid high crop output.
Rural areas account for about 70 percent of India’s annual gold consumption. India witnessed normal rains last year and the April 13-15 meeting of weather officials in the southwestern city of Pune is likely to forecast a near-normal monsoon this year based on various forecasting models, Indian officials said.
“The weakening phase of La Nina has given rise to the expectation of a near-normal monsoon in 2011,” said D R Sikka, former director of the Pune-based Indian Institute of Tropical Meteorology.
Other officials of the Indian weather office, who did not wish to be identified, agreed. A La Nina weather pattern causes heavier-than-normal rains in South Asia. After the weak phase, the La Nina is expected to enter a neutral phase without posing any threat to good rainfall during the monsoon season.
The Pune meeting will issue a consensus forecast for the monsoon on the final day of the conference. While India is mostly self-sufficient in staples like wheat and rice for its 1.2 billion population, drought can push the country into international markets as it did in 2009 when India had to import sugar — sending global prices to record highs. The government subsidises the price of key crops to contain inflation and ensure half a billion poor — many of whom spend up to 60 percent of their incomes on food — can afford to eat. The first official Indian forecast is not due until later this month. During 2009, the driest monsoon in 37 years caused widespread losses to key crops such as oilseeds and sugarcane, pushing up food inflation and causing a political headache for the government.
Monsoon forecasting in India is carried out by government-backed organisations and has significant political implications in a country where more than 60 percent of voters are in rural communities and form the bulk of the government’s support base. Bad rainfall results in political pressure on the government, as farmers demand higher rates for their produce and ask bureaucrats to waive loan repayment and electricity charges, impacting public finances.
Prime Minister Manmohan Singh’s ruling Congress government, mired in a slew of corruption charges, has struggled with double-digit food inflation for most of its second term in office since 2009 when it won an election partly by boosting farm incomes. In early 2010, India’s food inflation went as high as 22 percent on supply constraints. The government hopes monsoon rains - which traverse the subcontinent from its southern tip to the Himalayan north from June through September - would boost farm output and help lower prices, potentially providing a timely political boost ahead of key state elections.
“The budget, and the economy as a whole, it is said is a gamble on the monsoon,” Paranjoy Guha Thakurta, a leading Indian political columnist, told Reuters. “The reason is simple - roughly 60 percent of crop area in the country is rain-fed.”
Higher agricultural supplies triggered by normal rains could encourage the Indian government to allow overseas sale of wheat and lift export curbs on rice.
India faces a storage problem as the 2011 wheat harvest is set to be a record, exceeding demand for a fifth straight year. “The government can make a bold decision on grain exports. It can tinker with policies if the monsoon shapes up on expected lines,” said Veeresh Hiremath, research head of the Hyderabad-based broking Karvy Comtrade.
Higher oilseed output last year helped India increase oilmeals exports to traditional buyers in southeast Asia by more than half to 5.1 million tonnes. In most parts of India, the monsoon accounts for 75-90 percent of the total annual rainfall. The monsoon impacts other sectors of Asia’s third largest economy, as farmers spend their cash on cars, motorcycles and consumer goods. Good rainfall reduces demand for diesel, used to pump water from wells for irrigation when rainfall is scant.
Finance Ministry to review PSU banks' loan book
The finance ministry is likely to review the loan portfolio of public sector banks to ensure they are lending directly to the priority sector and not buying loans from regional rural banks (RRBs) or microfinance institutions (MFIs) to meet their mandatory lending requirements.
The ministry is scheduled to hold the review later this month, a finance ministry official said.
According to the Reserve Bank of India (RBI) guidelines, banks are required to lend 40% of their adjusted net credit to the priority sector, which includes agriculture, small-scale industries and other weaker sections.
If they fall short of this target, they can buy the loans of RRBs or MFIs to meet the level.
During the annual performance review of public sector banks last year, the ministry had proposed to close the RRB and MFI route for them. Banks, however, opposed the move and promised to increase disbursement to the designated sectors.
"If banks are still lagging in their targets and a major portion (of priority sector lending) is achieved through acquiring portfolios from RRBs, we may look at closing the option," the finance ministry official said.
But most banks are of the view that the government should not worry over their buying out portfolios from RRBs or MFIs.
"In any case, the banks are meeting the targets and exceeding them," a Central Bank of India official said.
Data issued by RBI shows that public sector banks had lent 864,564 crore to the priority sector in 2009-10, about 41% of the net bank credit. Only three state-run banks were not able to meet their priority sector lending targets.
"Besides, RRBs and MFIs have a better understanding of the region, which leads to less loans turning bad," the Central Bank of India official added.
The non-performing assets, or bad loans, of public sector banks in the priority sector stood at 36,507 crore at the end of September 2010, an increase of 18% in six months.
Banks prefer to buy out loan portfolios from RRBs or MFIs as they get only 6% interest on amount deposited with the Rural Infrastructure Development Fund (RIDF).
"If you acquire a portfolio at even 9%, you are sure that there will be some return as strict due diligence has been done on these accounts before lending," said an official with the National Bank for Agriculture and Rural Development (Nabard).
The government has raised the target for lending to agriculture sector by 27% for FY 11-12 to 475,000 crore and directed banks to step up direct lending and increase credit to small and marginal farmers.
At present, if banks are not able to meet their priority sector targets, the shortfall is diverted towards RIDF. In 2009-10, Nabard had disbursed 12,387 crore from the XV RIDF fund.
Wheat export ban: Government to decide between politics and excess grain
The record wheat crop of 84 million tonnes has turned into a ticking time bomb for a decision-weary UPA. Though analysts have begun mooting wheat exports to deal with India's problem of plenty, the government is finding it tough to reach a decision.
With inflation a major issue in the looming state elections, lifting the ban on wheat exports that is in place since 2007, could turn into a political hot potato although there is no shortage of wheat. But retaining the ban would force the Centre to procure a lot more grain than it could handle.
A Committee of Secretaries (CoS) examining the tricky problem has thrown its hands up after several meetings yielding no outcome. One of the CoS members has put it on record that the committee is 'paralysed because it is politically incapable of taking a decision.'
The Centre already has wheat reserves of around 17 million tonnes and the Food Corporation of India (FCI) has set a procurement target of 26.2 million tonnes for this season. This would take the government's reserves to 44 million tonnes - almost twice what it disburses annually through the public distribution system.
But with the private sector also building a wheat buffer stock of seven million tonnes, officials expect muted interest in the wheat hitting mandis from now to June. So more wheat may accrue to the FCI than its target.
"What would we do with so much wheat? We don't have the storage capacity and if there's any rain, the grain would rot," a government official said.
The Commerce Ministry has been flagging the need for a plan to tackle the impending wheat glut, which includes allowing exports, for the last three months.
But the food and public distribution ministry under the recently-inducted KV Thomas, has so far reacted with caution rather than decisiveness.
The food ministry is hoping that the Food Security Bill , hanging fire due to differences between the Sonia Gandhi-led National Advisory Council and the government, would become a reality and allow it to deploy the extra wheat.
On Monday, Thomas said the government has to 'very cautious' about allowing exports in view of lower global wheat production and the proposed National Food Security Act. But a consensus on the hotly contested food security law is unlikely soon.
"We will see what the final shape of the Bill is, but let's not lose sight of the immediate problem we have to fix," said another government official.
"We are going to be hit both ways - not exporting wheat would deprive farmers of better incomes and stockpiling it doesn't make sense when we don't know what to do with the wheat," he said.
Over the last week, Agriculture minister Sharad Pawar and Ashok Gulati, the chairperson of the Commission for Agricultural Costs and Prices (CACP), have spoken in favour of wheat exports to cash in on high global prices. Wheat prices are up 75% since last April in the wake of a bad crop for many global producers.
Uttar Pradesh-based Samajwadi Party and Rashtriya Lok Dal have asked the Mayawati government to press the Centre for an early lifting of the ban on wheat exports.
Uttar Pradesh expects a record 30 million tonne wheat crop and opposition parties have said that a delayed nod for exports won't help farmers but traders - as it happened in the case of sugar.
The government recently allowed unrestricted sugar exports up to 5 lakh tonnes because local prices had cooled off on the back of improved output.
Pictorial warnings on tobacco products ineffective: Health Ministry
The Union Health Ministry today admitted the present pictorial warnings on tobacco products have not been effective as people did not understand their message of caution. The Ministry is also in consultation with the Agriculture Ministry to find a way out in persuading tobacco farmers to move to another crop in its bid to contain tobacco use, Keshav Desiraju, Additional Secretary in Union Health Ministry, told reporters here.
A pilot study is underway in Andhra Pradesh in this regard, he said. "We are working on improving pictorial warnings. People did not understand the picture of 'scorpion' was meant to show that consuming tobacco is dangerous. Similar was the case in the image of X-Ray.” "In some cases, we got the feedback that the image was not clear. Globally, evidence shows that pictorial warnings work and act as a deterrent," he said.
Pakistan has one of the most effective pictorial warnings and that the government has to work on improving the pictorial warning, Desiraju said during the National Consultation on Smokeless Tobacco Conference. "Use of smokeless tobacco is one thing which is more prevalent in India. Now it is spreading to other countries and we have found that the countries which have shown such a trend has Indian population," he said.
Noting that most of the anti-tobacco campaign is focussed on the issue of smoking, Desiraju said there was a need for building awareness on use of smokeless tobacco also. "The target group is different. We need to reach out to them in a different way. We have to think how to reach out to rural populace," he said.
He noted that banning tobacco itself may not be that efficient as "industry is always two steps ahead of government" when it comes to circumventing law. "We have recently heard about a particular type of cigarette, which has nicotine but no tobacco. This product is not subject to any legislation," he said.
Dr K Srinath Reddy, president of Public Health Foundation of India (PHFI), said there was a need for policy level intervention to curtail usage of smokeless tobacco. Dr Vinayak Prasad of WHO said there was no point in banning smokeless tobacco in one state when others are not banning. "If Uttar Pradesh bans smokeless tobacco and Bihar doesn't, then it is not of any help. What we need is centralised action," he said.
Govt mulls setting up clusters for growing vegetables
Move aimed to address mismatch in demand and supply at urban centres to address the issue of vegetable shortage at urban centres across the country, the Centre plans to have clusters for vegetable cultivation and storage. One such cluster would be set in either the capital city or any city with a population of more than one million in each state.
Creation of these clusters would address the mismatch in demand and supply of vegetables in select cities. A proposal for this was made by Finance Minister Pranab Mukherjee, with an allocation of Rs 300 crore, in the Union Budget for 2011-12.
According to draft guidelines prepared for implementing the scheme, private players would not have a major role to play in the programme. State governments would identify the city where they want to set up these clusters. A survey will be conducted in the identified cities to assess the supply bottlenecks and potential areas near the city where vegetables could be grown.
“Based on the survey, state governments would have to prepare a project report that would also have information on geography and climate, potential for vegetable development and land availability,” a key government official said. The report should also spell out the measures through which the existing infrastructure, like warehouses, godowns, etc, could be better utilised for storage of vegetables in states.
“Availability of safe and good quality vegetables on a regular basis at affordable prices is a major challenge. For this, action is required on several fronts, like production, post-harvest handling, storage, transportation, marketing, distribution and policy reform,” the official said. The government plans to organise vegetable growers into farmer associations and groups to benefit from economies of scale and also coordinate with public sector agencies and municipal corporations to make land available for cultivation near cities.
The National Bank for Agriculture and Rural Development (Nabard) will provide the necessary credit for the programme. The state directorates of horticulture, horticulture missions and governments will be main implementing agencies for the scheme. Barring minor dips, India’s food inflation has mostly remained stubbornly high through 2010-11, because of high price of fruit, vegetables and protein-rich foods like milk, chicken and fish.
Chhattisgarh farmers benefiting from multi-storied farming
The multi-storied pattern of farming is benefiting farmers of Chhattisgarh. Farmers are planting many crops using this method. The state, known as the 'Rice Bowl of India', is now looking forward to diversifying its productivity in other crops.
The Indira Gandhi Agriculture University in Raipur is assisting the farmers in their quest for better crop productivity. Krishna Kumar Sahu, a professor at the university, said Chhattisgarh's farmers have always followed traditional pattern of multi-storied farming. Therefore, the institute did not face any problem in acquainting the farmers with the system.
Sahu said that this pattern of farming involves the proper utilisation of our natural resources like land, water and solar energy. "In a state like Chhattisgarh, the main source of water is rainwater. In the Indira Gandhi Agricultural University, there was a massive research on rainwater conservation and a model was prepared which is known as the Raipur Model," said Sahu. He said other regions beyond Chhattisgarh are also benefiting from this method.
Agriculture sector green house emissions decline 3 pct in India
Emissions of harmful green house gases (GHG) from the agriculture sector in India declined 3 per cent in a period of about 13 years to 2007 due to the adoption of advanced farm technologies. CHG emissions declined from 344.48 million tonnes of CO2 equivalent in 1994 to 334.41 million tonnes in 2007, according to the government data.
The data has been provided by Indian Network for Climate Change Assessment (INCCA), a programme that brings together over 120 institutions and over 220 scientists from across the country to undertake scientific assessments of different aspects of climate change. Agriculture has been seen as producing significant effects on climate change, primarily through the production and release of CHGs like carbon dioxide, methane and nitrous oxide and also by altering the earth's land cover, which can change its ability to absorb or reflect heat and light, thus contributing to radiative forcing.
Methane and Nitrous Oxide are the two major GHGs emitted from rice ecosystems due to conventional method of rice cultivation, soil management and crop residue burning. The Indian Council of Agricultural Research (ICAR) and different state Agricultural Universities (SAUs) have been evolving technologies to reduce these emissions without compromising the foodgrain production. These technologies include improved irrigation management, cultivation of aerobic rice, direct-seeded rice and system of rice intensification (SRI) and use of neem coated urea.
Recently, ICAR has initiated a programme "National Initiative on Climate Resilient Agriculture" to strengthen the climate change resilient research in agriculture and allied sectors and demonstrate climate resilient technologies at farmers field.
Wheat production to be all-time high this year
Union home minister P Chidambaram may consider UP as a block in India's development but the state contributes 30% in the national food basket, whereas it constitutes 16% of the land and 18% of the population.
The good news is that the food share this year is all set to increase further with wheat harvest expected to be over 300 lakh metric tonnes. UP is country's top wheat producer and this year, the production is expected to be all-time high.
The wheat production target for this year was 280 lakh metric tonne. "While the conservative estimates made earlier had put the harvest at 288 lakh metric tonnes, the actual production is expected to be around 316 lakh metric tonnes," said director, agriculture, Mukesh Gautam. The production of pulses is expected to be 17 lakh metric tonnes and oil seeds 7 lakh metric tonnes, which is also high in comparison to previous years.
The increase in production is because of increase in acreage, favourable weather and good management. Against 93 lakh hectares last year, the wheat was sown in 96.90 lakh hectares in 2010-11.
The state government has set a target of procuring 40 lakh metric tonnes of wheat for public distribution system, which is one lakh more in comparison to the last year. Nine state government agencies have been asked to set up 4,443 wheat procurement centres all over the state. The wheat will be purchased at minimum support price (MSP) of Rs 1,120 per quintal from April 1 to June 30. A ceiling of 5 lakh metric tonnes has been put on the bulk purchasers, like flour mills and agri industries.
Another condition for the bulk purchasers would be that the wheat purchased will be used by them and not exported to other places. "The provision has been made to ensure good returns to farmers," said a senior state government officer. Though the bumper wheat crop would help in keeping inflation down, the farmers are a worried lot. Reason - the bumper crop means surplus which results in drop in purchase prices."Last year, farmers had to sell their wheat at Rs 900 per quintal against MSP of Rs 1,100 per quintal to private mills due to surplus.
The farmers had suffered losses also due to shrivelling of wheat grains due to excessive heat in the month of March," said Yogendra Singh, a farmer. Kisan Jagriti Manch president Sudhir Kumar said that the government will have to prevent mill owners and agri industries from coercing small farmers to sell their produce at low prices. Another problem would be of the storage. Last year, thousands of metric tonnes of procured wheat was left in the open to rot due to lack of godowns. This year, besides their own godowns, the Food Corporation of India is also taking private godowns on rent for storage, said officials.
India''s onion exports plunge due to high MEP
Owing to high Minimum Export Price (MEP) of onion after lifting of ban in late February, shipment of the bulb from India dropped to as low as about 10 per cent as compared to last year, a development which helped onion exporters of Pakistan, China and Iran having lower MEP. Indian onion traders contracted only 27,300 tonnes of the root vegetable from February 17 (when the government lifted the ban) to March 23 this year, sources in agri-cooperative Nafed, the main agency for contracting onion export, said. The country had exported 2.81 lakh tonnes of onion during the corresponding period a year ago, they said. The government has slashed the MEP of onion other than Bangalore Rose Onions and Krishnapuram onions, to USD 170 a tonne on March 31, 2011 from USD 600 per tonne on February 17. Following strong intervention by Union Agriculture minister Sharad Pawar, the government had on March 1, this year brought down MEP to USD 450 per tonne from USD 600 a tonne. Later, it was brought down in quick successions to USD 350 a tonne, USD 275 before bringing it to USD 170 on March 31 this year. The government had imposed a ban on export of the kitchen staple after its domestic prices had skyrocketed to Rs 80-85 per kg in December last year. However, following crash of prices within the country, the ban was lifted. The sources attributed the sharp fall in onion exports to the ban and later fixing MEP at a higher level which rendered the vegetable uncompetitive in the international markets. Higher MEP in India helped countries like Pakistan, China and Iran whose export prices ranged between USD 170-200 during February-March this year, the sources said. They said the impact of bringing down the MEP to internationally competitive level of USD 170 now would take at least a month to lift the volume of export from India. India exports onions mainly to West Asia, Singapore and Bangladesh. The period November to February end is considered a peak season for onion export as international demand for the veggie multiplies due to festivals. Sources in NHRDF (National Horticulture Research Development Foundation), an arm of ICAR, which monitors onion cultivation, said Nashik in Maharashtra, the major producing region, has been witnessing surplus arrival of onion following high late kharif production. Main onion wholesale markets like Lasalgaon, Pimpalgaon and Pune are witnessing large arrival of the veggie in the range of 20,000 to 25,000 tonnes daily nowdays, Director NHRDF Nashik R K Gupta told PTI over phone. Rabi harvesting of onions is going to start soon which would further glut the markets, Gupta added.
India takes to contract farming in a big way
Asit Tripathy, Chairman of Agricultural and Processed Food Products Export Development Authority (APEDA) has pointed out that Indian states need to promote contract farming to ensure that farmers get remunerative prices and assured market for their produce apart from getting freed from the clutches of middlemen.
India's national agricultural policy also envisages private participation through contract farming and land leasing arrangements to allow accelerated technology transfer, capital inflow and assured market for crop production, especially oilseeds, cotton and horticultural crops.
According to Asit Tripathy, contract farming is taking place in different forms in various states in the country. Addressing a conference on ‘Agro exports from Andhra Pradesh – present emerging scenario' in Hyderabad organised by APEDA and Confederation of Indian Industry, he pointed out that because of small holdings, farmers are not able to invest and see surplus produce.
According to official estimates, there are 25 big and small private companies engaged in contract farming for various commodities - it includes AVT Natural Products Ltd in Marigold caprica chilly in Karnataka, Escorts Ltd in basmati rice in Punjab, Nestle for milk in Punjab, Cargill India Pvt Ltd for wheat, maize, soybean in Madhya Pradesh, Hindustan Lever Ltd for wheat in Madhya Pradesh. The complete list is available in http://agmarknet.nic.in/ConFarm.htm
Contract farming involves a pre-agreed price between the company and the farmer. The agreement is defined by the commitment of the farmer to provide an agricultural commodity of a certain type at a time and a price and in the quantity required by a committed buyer, mostly a large company
PepsiCo was the first company in India to start contract farming of tomatoes in Hoshiarpur district of Punjab . Reliance Life Sciences, ITC (agri-business division) and McDonalds are some of the prominent business giants, which have either started contract farming projects already or are in the process of actively discussing them with various state governments. PepsiCo and other companies have used the contract system for the cultivation of Basmati rice, chilli and groundnut, as well as for vegetable crops such as potato. The amendment of amendment of the Agriculture Produce Marketing Committee Act in 14 states, which allows farmers to sell their produce in open markets has enabled the growth of contract farming by allowing big investment by corporates in the segment.
Benefits of Contract Farming
1) Farmer gets rid of middlemen and gets assured price
2) Farmer gets the inputs and only needs to put in land and labour as his contribution
3) National Policy assures that land will be permanently owned and cultivated only by farmers.
4)Farmer gets freed from the clutches of money lenders
Last year, Business Standard reported on 6500 potato farmers in Bamunpara in West Bengal who got a market price of Rs 6-8 per kg when market prices crashed to as low as Rs 3-3.50 per kg on bumber potato crop in the region. Thanks to the contract farming tie-up with Pepsi Co, several farmers escaped the market crash.
What PepsiCo started as a pre-condition to its entry in India is today its most welcomed programme. When it entered India in 1989, the Indian government had made it mandatory for the company to do contract farming in the country, to help farmers improve crop yield through adoption of latest agricultural technologies.
The company identified tomato processing as a potential activity, as tomato paste was used by Pizza Hut/KFC/Taco Bell restaurants, part of PepsiCo at that time. The company tested this for about four years. The efforts resulted in manifold yield improvement of tomatoes from 16 tonnes/ha to 52 tonnes/ha. The improved yields helped increase farmer incomes despite lower prices to the consumers. PepsiCo entered into pre-agreed price contracts with the farmers. This was the beginning of contract farming in India, The Business Standard report added.
Amul is now $3 bn brand
Co-operative dairy giant Amul is now a three billion dollar brand. The Gujarat Co-operative Milk Marketing Federation (GCMMF) that markets brand Amul has reported a sales turnover of Rs 9,780 crore for the fiscal year 2010-11, a growth of 22 per cent over previous year when it had registered Rs 8,002 crore annual turnover. Putting together direct sales done by all the 13 district dairy unions of Gujarat, which are member unions of GCMMF, sales turnover of brand Amul has touched the Rs 13,500 crore mark - US $ 3 billion.
"We have now set the target of crossing sales turnover mark of Rs 12,000 crore for the current fiscal year, which is in tune with our target of achieving sales turnover of Rs 30,000 crore by 2020," managing director of GCMMF R S Sodhi told TOI on Saturday. Amul had achieved the distinction of becoming country's first billion dollar co-operative brand just four years ago in 2007.
At the same time, sales of Amulspray, which is India's largest selling infant food, has crossed Rs 1,000 crore mark turning the infant food into a Rs 1,000 crore brand.
"In all major product categories, we have received double digit volume growth. In spite of increase in prices, there is tremendous growth in sales of Amul milk, butter, Amulspray, Amulya, cheese and paneer," says Sodhi.
Sale of Amul milk has brought in revenues to the tune of Rs 4,300 crore during 2010-11 up from Rs 3,000 crore during 2009-10 and Rs 2,200 crore in 2008-09. Sale of Amul brand milk is around 70 lakh litres per day at present even as the provisional procurement of milk is three per cent up in Gujarat as all dairies put together are procuring 96 lakh kilogram milk per day against 93 lakh kilogram milk per day, which they were collecting, last year.
The average procurement price paid to farmers including yearly bonus was Rs 337 per kilo fat in 2009-10 which this year will be Rs 425 per kilo fat after counting bonus above Rs 400 per kilo fat presently being paid to the farmers by the dairy unions.
"Farmers have been able to earn Rs 1,700 crore more this year because of increase in price of milk," says Sodhi. "Milk is the only agriculture commodity where in spite of increase in production, farmers have got good returns." For this financial year, GCMMF is aiming to expand its reach to 3,000 smaller towns and cities, especially for its chilled products by hiring 200 super stockists.
Tomatoes to fetch higher price in October
Tomatoes are expected to fetch a wholesale price of Rs1,150-1,350 per quintal in October this year, more than what is expected in August and September, according to an econometric analysis by GB Pant University of Agriculture and Technology.
Under a project, 'Establishing and Networking of Market Intelligence Centres in India,' underway at the Pantnagar- based varsity to help farmers know the likely prices of agriculture commodities well in advance of sowing, the scientists have forecast that wholesale prices of hill tomatoes will be in the range of Rs1,100-1,300 per quintal in August and September this year, a press release said.
However, in October, the wholesale prices of hill tomatoes are expected to be around Rs1,150-1,350 per quintal.
Scientists have, therefore, advised farmers who wish to pursue hill tomato cultivation in the coming season to take into consideration these prices to decide the time of sowing and the area to be sown under tomato crops. The sowing season has started in Uttarakhand.
The research team of scientists conducted a market survey of the Haldwani-regulated market, a major market for hill tomatoes in Uttarakhand, and analysed wholesale price data for the last twenty years in this market to come up with their projections.
Tomatoes are a major vegetable of Uttarakhand, where it is grown both in the hills as well as the plains. Nainital, Dehradun, Udhamsingh Nagar and Haridwar are the four major districts producing tomatoes and constitute about 63% of the total production in the state.
Farmers leaders meet to launch National Body
A meeting of over twenty all India farmers organisations, which took place in New Delhi on March 14 2011, resolved to launch the Federation of Indian Farmers Organisations by end of March with the participation of all the political parties and expert groups. The group deliberated upon and decided to adopt FICCI model structure but to be guided by a presidium to represent interests of the farmers with minimum one farmers association and maximum three from each state. National leaders and former Agriculture Ministers – Sh. Ajit Singh and Sh. Rajnath Singh and eminent scientist, Prof. MS Swaminathan welcomed the idea of forming national federation and expressed their full support to the farmers leaders. The meeting was convened by M J Khan, Editor of Agriculture Today Magazine.
The stormy meeting participated by major farmers organisations also demanded CBI enquiry into the funding of a Delhi based environmental NGO by the European Union for catalysing the formation of pressure group. Dr Krishan Bir Chowdhary of Bharat Krishak Samaj stated that the funding in excess of Rs 56 crore received by this NGO has been misused against the interest of farmers and questioned if lobbying in India by foreign money is legally permitted? He added that a part of these funds were used to generate scientifically incorrect studies against the pesticide Endosulfan. The EU has proposed the listing of Endosulfan as a persistent organic pollutant at the stockholm convention and is pushing for a global ban, which will cause huge loss to the farmers and Indian agriculture.
There are 120 million farmers’ families in India and over 75 million use Endosulfan. As there is no effective substitute for endosulfan millions of farmers will lose their right to choose an affordable and pollinator friendly insecticide said Puneet Singh Thind, President, Rashtriya Kisan Sangathan. He warned that NGOs, no matter how powerful, can not be allowed to play with the interest of farmers.
Farmers also demanded that an Income Insurance Scheme to be raised by Rs. 5,000 crore so that they could be covered by price fluctuation and crop failures. They demanded fair price to their produce and not the subsidy, which they termed is harming agriculture. Asking for MSP to be extended to more crops, particularly the horticulture crops, farmers termed the Union Budget 2011 – 12 as disappointing for farmers, as no major program launched for agriculture development. They expressed concerns that no farmers organisations are invited in pre or post budget discussions, except some MNC sponsored farmers, propped up by industry bodies. On the land acquisition issue, farmers warned that the Governments should not act as property dealers with profiteering motives, and should give farmers minimum 75% of the market rate. And if land acquisition bill is not passed to the satisfaction of the farmers, they will launch a nationwide protest.
Major organisations who participated in today’s meet were Bhartiya Krishak Samaj, Confederation of Kisan Organisations, Rashtriya Kisan Sangathan, Gujarat Farmers Federation, All India Vegetable Growers Association, Bhartiya Kisan Union, All India Apple Growers Association, Bihar Farmers Federation, Association of Haryana Farmers Club, Kisan Cell of BJP, All India Medicinal Plants Association, UP Seed Growers Association, Kerala Organic Movement besides others.
