India 9th Biggest Grape Producer in World

With an industry less than 20 year old, India has not yet made a mark in the wine industry in the world but it is already the ninth biggest producer of grapes including the eating grapes with an estimated crop of 18.8 million quintals of grapes in 2010, according to Federico Castellucci, Director General of OIV, while releasing the World Statistics on grapes and wine at the 34th World Congress of Vine and Wine, reports Subhash Arora from Porto. Out of the 16 top producers led by Italy at 75 million quintals, only six nations – China, Turkey, Chile, India, Egypt and Brazil have demonstrated an increase while the rest have shown a decrease.

According to the statistics collected mostly from the member states, world wine production in 2010 fell to 1998 levels with only Argentina, China, South Africa and Chile seeing the production increase during 2005-10. The consumption showed a slight increase at .4% to 238 Million hL, thanks to the US, Germany, Australia, Canada and China which increased their consumption substantially with China becoming the 5th largest consumer.

India's sugar output to be 32 MT per year till 2020

Sugar production in India, the world's second biggest producer and largest consumer, is expected to be on an average 32 million tonnes (MT) per year for the next 10 years, says a latest report.

According to the Agriculture Outlook prepared jointly by Paris-based OECD and UN body FAO, global output of sugar is expected to soar to 209 MT in 2020-21 as against 158 MT in 2010-2011.

"India is expected to boost production substantially to 32 MT of sugar per year, on average, in the coming decade, or some 50% higher than 2008-10, when the production fell sharply," according to the report.

The Organisation for Economic Cooperation and Development (OECD) is a 34-member grouping of mostly developed nations, including the US and Germany.

According to the latest outlook, annual sugar output of India will continue to depend on periodic large swings in the production cycle, where two-three years of surplus is followed by two-three years of deficit, it said.

After a jump to 30.1 MT in 2006-07, the country's sugar output declined to 15.2 MT in 2008-09 and is currently estimated at 28 MT ( in raw value) for 2010-11, it added.

As per the report, the sugar demand in India has been growing steadily at about four per cent per year over the past 10 years. Therefore, the domestic production and consumption balance moves from periods of surpluses and deficits, leading to often significant changes in the trade position.

On global front, the OECD-FAO report said the world's sugar output is likely to increase by 50 MT to reach over 209 MT in 2020-21 in response to the rising demand of sugar and its by-products and relatively high market prices.

The bulk of the additional sugar output will come from the developing countries and the main burden of growth will continue to fall on Brazil, the world's biggest sugar producer, it said.

"The potential for expanding sugar production in India exists and can be fully exploited if adjustments were introduced to ensure a market driven relationship between sugar and sugarcane prices," it added.

Suggesting India to relax some of the existing measures such as the monthly releases, the report said, "This could provide sugar factories some cash flow flexibility".

Regarding decontrol of the Indian sugar sector, the report said: "The liberalisation of the sugar industry can only be undertaken within the context of broader domestic reforms, because of the linkages on both demand and supply sides that prevail in agricultural commodity markets".

On sugar prices, the report pointed out that "major uncertainies remain in the international sugar market".

In the light of the relatively tight world market situation at present, any major production disruptions in the main producing countries of Brazil and India, could radically change the market outlook in the near term, igniting further bouts of high volatility, it said. re � p r � ( �Q' wth in 2008-09.
"Food and agri sector has a strong base in the state and there is plenty of scope for setting up agro-based industries like food processing, sugar and sunflower. The state must promote small-scale, tiny, artisan units to reduce poverty and unemployment through low-capital investment," said Modi.

ASSOCHAM has set a benchmark of 6 per cent annual growth rate in agri sector's contribution to the GSDP crossing Rs 1 lakh crore mark by the end of this decade from levels of around Rs 60,000 crore as in 2008-09. This will require investment worth Rs 1.8 lakh crore until 2020.

The Chamber said that the state government needed to make significant changes to its agriculture policy considering the state was lagging behind its competing states in terms of technological advancement in agri sector. There is dearth of reliable and timely information procedure, lack of information on current prices, trends in various national and international markets, disturbance in demand-supply patterns, scientific forecasting, says the body.

CII for enhanced farm mechanization in India

The Confederation of Indian Industry, a premier Industry body has recommended intensification of agricultural activity through increased farm mechanization, given limited availability of land and imperative for food security in India.

“Identification of farm mechanization needs and development of need based farm implements are of prime importance” stated Rakesh Bharti Mittal, Chairman, CII National Council on Agriculture.

According to the CII press release, it is time to move the policy from ‘Rupees per Kilo’ to ‘Rupees per Acre’. The policy framework should encourage farmers to move towards greater use of farm equipment which will lead to higher agricultural productivity and thus higher farm incomes and crop yields.

CII proposes an action agenda covering policy framework, availability of farming machinery and equipment, and financial measures for promoting farm mechanization. To begin with, CII recommends that a joint government and private sector working group be established to suggest a roadmap. A National Mission on Farm Mechanization should undertake activities in an intensive manner, suggests CII.

According to CII, availability of farm implements and machinery would hinge on maintaining a stock of such equipment at state agro corporations or agri universities for deployment on farms when needed. This could be done on a hire-purchase or lease basis so that small and medium farmers as well as large farms could access them as required. CII suggests a range of measures such as accelerated depreciation, tax exemptions, zero duties, etc to incentivize purchase of machinery.

Access to technology would also be a point to consider, says the CII press release. Technology transfer from foreign firms could be promoted through joint ventures. R&D facilities could also be established, recommends CII, while learning for farmers could be carried out through tailored distance programs leveraging IT and telecom.

CII also suggests a complete finance mechanism for facilitating leasing of farm machinery by small, medium and large farmers. Loans should be offered on agricultural interest rates and lending norms should be liberal, flexible and transparent.

The participation of private industry in farm mechanization would be critical, feels CII. Dedicated extension programs in public-private partnership mode would be needed. Suitable solutions taking into account crop types, seasons, and soil types must be developed which would be facilitated through industry.

Chandrajit Banerjee, Director General, CII, said, “While selective mechanization in our country has improved agricultural conditions in certain parts of the country, it is still a bottom of the pyramid story and it will remain so unless concrete measures are taken to propel farmers towards adoption of efficient farm mechanization practices. Setting up of a farm mechanization mission is thus the need of the hour.”

Despite significant improvements in crop productivity during the Green Revolution, yields in India have nearly stagnated for two decades and are around 35-50% below international averages. Yield differences are also apparent across states, pointed out the CII press release.

Experts estimate that by 2025, agriculture productivity should increase by 100% to sustain the projected population of 1.363 billion. According to CII, this can only be achieved through intensifying agriculture which is aided by mechanization inputs.

However, huge gaps exist in the levels of mechanization in India in comparison to the world. For example, in Argentina, a food exporting nation, 9.4% of the population is engaged in agriculture and the level of mechanization is 75%, while in China the respective proportions are 64.9 and 38. In India, 52% of the population works in agriculture, but the level of mechanization is just 30%.

CII believes that apart from increasing productivity, the use of farm mechanization enlarges employment opportunities in farm and non-farm sectors through increase in area under plough, multiple cropping, development of agro-industries and related services. Further, the drudgery of human labour is reduced and unhygienic operations such as handling of farm yard manure can be done with machinery. Farm mechanization is also increasingly important because of workers moving away from farming activity, as well as increase in the cost of upkeep of animals.

Assocham releases study on 2nd green revolution; sees better growth for AP
India's population was estimated to touch 1.4 billion by 2020 and hence the agricultural sector must grow by 4 per cent each year to support this huge number, according to a study on Second Green Revolution: Role in Transforming Indian Agriculture released by the Associated Chambers of Commerce and Industry of India (ASSOCHAM) and The International Crops Research Institute for the Semi-Arid Tropics (ICRISAT) at a Global Summit on Green Revolution II: Growth Engine for Transformation in Hyderabad on Tuesday.

"Indian agricultural sector needs to be revamped to meet future demand and nutritional security of this huge population. Next green revolution with a focus on holistic development of agri sector is imperative to support small, marginal farmers in sustaining their livelihood," said Dilip Modi, president, Assocham, at the summit.

"Provision for end-to-end services, solutions to problems faced by farmers and providing a linkage to market is significant to facilitate access to better technology and other resources," added Modi.

Innovations in technology, investments in R&D and revamping of the PDS (Public Distribution System) are some of the suggestions made in the Assocham study.

Introduction to new technologies was required to realise the business potential and employment opportunities in agri sector to boost income from agri sector together with growth and development of the sector, said the study.

The study suggested that investments, particularly in research and development (R&D), would enhance agricultural growth by a great extent and provide over 50 per cent return in research and extension process. Only 0.5 per cent of India's agricultural GDP was invested in R&D.

Investments in agricultural research and development process can be increased through the public-private partnership (PPP) model. A cost-sharing strategy can help minimise the financial woes of R&D in agri sector and encourage various stakeholders like local government, private sector to conduct agricultural research programmes to inform and educate small-marginal, poor farmers about good production, the study suggested.

Such a mechanism would result in enhancing production of goods, services and technologies which could be produced alone by either of the sectors. The PPP would effectively utilise global resources for development of sustainable agri system across India and good researchers for solving agriculture-related problems.

Focussing on the persistent problem of PDS (Public Distribution System), the study said that failed distribution system together with crippled post-harvest infrastructure led to rotting of food grains.

Thus, the next green revolution should focus on ensuring food and nutritional security to the masses especially, people living below poverty line constituting almost 30 per cent of India's aggregate population.

"An inclusive market-oriented approach can revolutionise India's agricultural sector, lure youngsters to take it as a business venture and shun conventional career options and come up with better agricultural practices to improve productivity and quality," said D S Rawat, secretary-general, Assocham.

"Suitable technological advancements is the need of the hour to achieve new breakthroughs in agriculture. Besides, improving farmers' skills will help diversify the sector and minimise risks involved and foster an ecosystem for innovations from within the agri community," added Rawat.

The cropping pattern also needed to undergo transformation and to ensure nutritionally- oriented cropping pattern and production technologies. The government should collaborate with nutrition and agricultural scientists, suggests the ASSOCHAM-ICRISAT study.

Andhra Pradesh Vision 2020

Meanwhile, a Vision 2020 document brought out by ASSOCHAM shows that Andhra Pradesh has the potential to grow at an annual rate of 9 per cent as against the rate of around 5.45 per cent for 2009-10.

Although, agri sector contributes over 25 per cent to Andhra Pradesh's GSDP (Gross State Domestic Product) and 70 per cent of its population is engaged in and dependent on agriculture and allied activities, the sector registered a meagre 1.2 per cent growth in 2008-09.
"Food and agri sector has a strong base in the state and there is plenty of scope for setting up agro-based industries like food processing, sugar and sunflower. The state must promote small-scale, tiny, artisan units to reduce poverty and unemployment through low-capital investment," said Modi.

ASSOCHAM has set a benchmark of 6 per cent annual growth rate in agri sector's contribution to the GSDP crossing Rs 1 lakh crore mark by the end of this decade from levels of around Rs 60,000 crore as in 2008-09. This will require investment worth Rs 1.8 lakh crore until 2020.

The Chamber said that the state government needed to make significant changes to its agriculture policy considering the state was lagging behind its competing states in terms of technological advancement in agri sector. There is dearth of reliable and timely information procedure, lack of information on current prices, trends in various national and international markets, disturbance in demand-supply patterns, scientific forecasting, says the body.

US raises India's sugar import quota

In a bid to ease a supply shortage of sugar amid surging retail prices, the US has boosted its import quota for raw sugar by 120,000 tonnes including 1,421 tonnes from India.

With the addition of 120,000 tonnes to the tariff-rate quota (TRQ) for the 2011 fiscal year ending Sep 30, the quota now totals 1.676 million tonnes, the US Department of Agriculture said Wednesday.

Sugar is the only major agricultural commodity produced in the US that is subject to import quotas. The limits were established to benefit domestic growers. Mexico became exempt from the quota in 2008 under the North American Free Trade Agreement.

Announcing country-specific allocations of additional in-quota quantity of the tariff-rate quota (TRQ) for imported raw cane sugar, the US Trade Representative (USTR) said TRQs allow countries to export specified quantities of a product to the US at a relatively low tariff, but subject all imports of the product above a pre-determined threshold to a higher tariff.

One of the major responsibilities of Dr Bakshi has been in designing the Organisational and Business Restructuring of NABARD and spearheading initiatives in Cooperative portfolios, Core Banking Solutions for Cooperative Banks, rural infrastructure and direct financing. He has also headed the Kerala and Tamil Nadu Regional Offices of NABARD. Dr Bakshi was member of the Team that designed and replicated the ‘Self Help Groups (SHGs) – Bank Linkage Programme’ which is today the largest and fastest growing microFinance Programme of the World. He was also associated with the Committee on Cooperative Credit Structuring set up by the Centre. under Prof. Vaidyanathan and has negotiated with the GoI, ADB, World Bank and KfW for funding the legal and institutional reforms for rural cooperatives, the release said.

Bakshi takes charge as Nabard chairman

Dr Prakash Bakshi has assumed charge as chairman of the National Bank for Agriculture and Rural Development (NABARD).

A PhD in Economics, Dr Bakshi started his career as a lecturer at Ravishankar University, Raipur before joining the Reserve Bank of India in 1979. Dr Bakshi was executive director of NABARD and has been in charge of various departments such as Cooperative Revival and Reforms, Institutional Development, Farm Sector, Non-Farm Sector, micro Credit Innovations and Financial Inclusion initiatives, said a press release.

One of the major responsibilities of Dr Bakshi has been in designing the Organisational and Business Restructuring of NABARD and spearheading initiatives in Cooperative portfolios, Core Banking Solutions for Cooperative Banks, rural infrastructure and direct financing. He has also headed the Kerala and Tamil Nadu Regional Offices of NABARD. Dr Bakshi was member of the Team that designed and replicated the ‘Self Help Groups (SHGs) – Bank Linkage Programme’ which is today the largest and fastest growing microFinance Programme of the World. He was also associated with the Committee on Cooperative Credit Structuring set up by the Centre. under Prof. Vaidyanathan and has negotiated with the GoI, ADB, World Bank and KfW for funding the legal and institutional reforms for rural cooperatives, the release said.

G B Pant Agriculture University confers doctorate to YES BANK CEO

Mr. Rana Kapoor, Founder, Managing Director & CEO, YES BANK has been conferred a “Doctorate in Science (Honoris Causa)” at the 27th Convocation of G.B. Pant University of Agriculture & Technology that was held on May 20, 2011 at Pant Nagar.

The degree was awarded by H.E. Governor of Uttarakhand Smt. Margaret Alva. The Guest of Honour was Dr. S. Ayyappan, Secretary DARE, Government of India and Director General Indian Council of Agriculture Research (ICAR).

G.B. Pant University is one of the foremost institutions in the country for agricultural education and research, and Mr. Rana Kapoor was bestowed upon this honour for his significant contribution to the Food & Agribusiness sector in India, through innovative banking for farmers and agribusiness entrepreneurs through a Knowledge driven approach. He has been instrumental in promoting agri-eco tourism (including forestry tourism in Uttarakhand) in collaboration with European countries with technical assistance from scientists of the GB Pant University of Agriculture and Technology, Pantnagar.

Other noteworthy personalities who have been conferred with this Doctorate include Dr. Manmohan Singh, Honorable Prime Minister of India, Ratan Tata, Chairman, Tata Group, Sunil Bharti Mittal, Founder, Chairman and Group CEO of Bharti Enterprises, KP Singh, Chairman & CEO, DLF Ltd, Late Norman Borlaug, Nobel Laureate and ‘Father of Green Revolution’, Islam A Siddiqui, Chief Agricultural Negotiator of USA and Dr. Robert S Zeigler, Director General of IRRI, Manila, Philippines among others.

Speaking on this momentous occasion, Mr. Rana Kapoor, Founder, Managing Director & CEO, YES BANK said, “It’s an honour to receive this prestigious Doctorate from such a reputed INDIAN university for my ongoing contribution to the Indian Agriculture sector. I firmly believe that these pioneering developmental initiatives will play a catalytic role in the Inclusive Growth and Development of a TRANSFORMATIONAL INDIA. It is essential to address the gaps between the policy formulators, the investors, banking community and the farmers, as we aspire to truly evolve as the Food Basket & Food factory for the domestic and Global economies, and strengthen Food Security in our country.”

Under the leadership of Mr. Rana Kapoor, YES BANK has also been driving efforts for development of Agri-Infrastructure on a Public Private Partnership (PPP) mode. YES BANK has been actively associating as Knowledge Partners with various industry forums, trade bodies, summits and Chambers of Commerce such as CII, FICCI, ASSOCHAM and ICC, over the past several years. The Bank has been instrumental in planning and implementing Agro Food Parks, which is a unique transition of Indian Agriculture and Food Processing Industry to an organized, high-tech and safe, demand-led, and high-value orientation with considerable employment generation.

YES BANK has also been a pioneer in conceptualizing Modern Terminal Markets (MTM) in association with the Ministry of Agriculture (MoA), Government of India, which is a path breaking initiative envisaged a shortening the supply chain of perishables, and enhancing their efficiency resulting in increased income to the farmers.

Earlier, in March 2011, Mr. Rana Kapoor received the ‘Entrepreneurial Banker of the Decade 2001 - 2010’ award from Bombay Management Association (BMA). Mr. Kapoor was recently appointed as the Chairman of the FICCI Maharashtra State Council. He is a Member of the Government of India’s Board of Trade. Mr. Kapoor is also a Member of the Board of Governors of the Indian Institute of Corporate Affairs (IICA), established by the Ministry of Corporate Affairs, Government of India.