No to cotton export cap hike

Textile ministry is not in favour of exporting cotton above the specified cap of 55 lakh bales (170 kg each). Textile minister, Dayanidhi Maran, said that the government is taking steps to bring down the prices of the natural fibre in the domestic market. He said, “The government will allow export of only 55 lakh bales of cotton which is surplus and, on no account, we’ll allow more cotton to be exported.” The government had earlier allowed export of 55 lakh bales for the 2010-11 marketing season (October- September) of which 36 lakh bales have been shipped so far. Several textile industry bodies, including the Confederation of Indian Industry and the Tirupur Exporters association, have sought restrictions on cotton exports, citing rising prices and their impact on finished goods.

Rebuttal for NAC

Within a fortnight of Prime Minister Manmohan Singh rejecting the Sonia Gandhi-led NAC’s suggestions to link NREGS wages to minimum wages in states, an expert panel appointed by the PM has said that it “will not be possible to implement the National Advisory Council’s” recommendations for the proposed national food security legislation. Going against the NAC recommendation to provide “legal entitlement” to about 75 percent of the population, the panel, chaired by C Rangrajan, chairman of the Prime Minister’s Economic Advisory Council, has favoured legal entitlement to only the “priority group”, covering the rest with a varying quantum depending on the availability of foodgrains, and through executive order.

Jain Irrigation to form NBFC

Indian Micro irrigation giant, Jain Irrigation Systems Ltd (JISL), is moving towards setting up of a non- banking finance company (NBFC) to look into financing the farmers’ needs. It has acquired a rich pool of tacit and direct knowledge on the customer base of small farmers through its strong dealer network. The company indicated that it has observed inadequate / untimely credit being delivered to small farmer segment for his agricultural need. So, Jain Irrigation has decided to promote an NBFC with an overall objective of serving the small farmer and rural constituency to bridge the current gap. Jain Irrigation also indicated that this will reduce receivables in its balance sheet and significantly improve the working capital cycle for its micro irrigation business. The company’s board has already approved the move and will apply for a nod from the Reserve Bank of India for the same this quarter. It normally takes 3-4 months for the approval to come through. JISL is hoping that the NBFC will help boost its sales. “Farmers need timely and adequate credit which the NBFC can provide and it can also improve JISL’s balance sheet by reducing debtors,” Mr Ajit Jain, Director, JISL said. To begin with, the company will finance just the purchase of its own products.

Cotton output to remain low in 2011

India's cotton production in 2010-11 would be lesser by two million bales (170 kg), according to estimates made by The Southern India Mills’ Association (SIMA). According to the recent estimate by SIMA, India’s cotton crop will be 30.9 million bales which is 2 million less than the recent estimate by the Cotton Advisory Board (CAB) of India. SIMA has 400 members from South India belonging to the textile industry. The Cotton Advisory Board, on January 6, estimated the cotton production for the 2010-11 to be 32.9 million bales (170 kg each) and the total domestic consumption to be 27.5 million bales. J. Thulasidharan, Chairman of SIMA, in a recent press statement mentioned that with the current cotton production scenario, Indian mills will face supply shortfall from this July, which will lead to a sharp increase in yarn prices. He has requested the Ministry of Textiles to take up the cotton export matter with the Ministries of Commerce and Agriculture. SIMA wants the cotton export ceiling to remain 5.5 million bales (170 kg each).

“Past sins” behind farmers’ suicides

In less than a month, eight farmers in Madhya Pradesh’s Damoh, Raisen, and Betul districts have ended their lives due to mounting loan and crop failure. Politicians are busy sending jitters to the ruling government; but the worst for CM Shivraj Singh Chouhan came from his own partyman and present Agri minister, Ramakrishna Kusmaria, who blatantly blamed farmers’ ‘past sins’ for the rising suicide graph in the state! Earlier, in September 2009, this minister claimed to have spotted a UFO in his home district Damoh and linked crop damages to the unusual phenomenon! Eight farmers, including four in Damoh district in Bundelkhand region adjoining UP, have committed suicide in a month in Madhya Pradesh. Damoh, Narsinghpur, and Gadarwara are known for cultivation of good quality arhar lentils. But this year, the crop failed because of unusual cold hovering over many parts of the state, ruining farmers’ dream for a good arhar harvest.

Bamboo trail

At the start of this new decade, the Ministry of Environment & Forest (MoEF) looked confused about the Botany of Bamboo, whether it is grass, tree, or weed. By simply putting bamboo on a list in the forest Act, the MoEF has been able to control its use and trade, earning revenue for itself in return (10-15Th cr with 15% annual growth). Although, scientifically, bamboo has always been classified as grass and, historically, it was also treated as weed in the country when the colonial regulators wanted to clear it at large scale. Economic values can't rob the taxonomic importance of any species, which clearly placed it under the family "Poaceae". There are always certain necessary differences between science and fiction, but the real need is to establish the fact using the scientific documentation. At last, after a lot of trial and tribulations, MoEF accepted the Bamboo as Grass. So now, a major share of trade is all set to go to the local and tribal communities.

A homage to Th. Sivasailam

A. Sivasailam, Chairman and Managing Director of Tractors and Farm Equipment Limited (TAFE), was laid to rest on January 12, 2011. He was born on August 24, 1934, and headed one of the largest south Indian conglomerate ‘Amalgamations group’ for more than three decades. He was also a Padma Shri recipient and often regarded as the ‘Father of Indian Tractor Industry’. As one of the founding members of the Tractor Manufacturers Association, Mr Sivasailam’s commitment and sizeable contribution to the growth of the Indian tractor Industry will long be remembered. The list of awards Mr. Sivasailam received is long, including the prestigious Padma Shri. He was the recipient of the Distinguished Service Award of the All-India Management Association, the Lifetime Achievement Award of the Society of Indian Automotive Manufacturers, the Golden Jubilee Lifetime Contribution Award by the Automotive Component Manufacturers Association, and the Lifetime Achievement Award from SAE India. He was also honoured with the Outstanding Industrialist Award by the National Institute of Quality Assurance. The Tamilnadu Agricultural University conferred the degree of Doctor of Science (Honoris Causa) on him, in recognition of his contributions to agricultural business management and industrial development.

Wikileaks revelation about GM

Wikileak cables not only revealed the American game plan for the Iraq war and other areas, but also touched the domain of agriculture with US being advised by its officials to wage a military style trade war against the European countries that oppose GM crops. The US embassy in Paris in 2007, when France moved to ban GM corn by Monsanto, recommended that the US “calibrate a target retaliation list that causes some pain across EU since this is a collective responsibility, but also focuses in part of the worst culprits (those opposing GM crops).” A cable mentioned; “opportunities exist to press the issue with the Vatican, and in turn to influence a wide segment of the population in Europe and the developing world.” In other newly released cables, US diplomats around the world are found to have pushed GM crops as a strategic government and commercial imperative.

John Deere to set up second Indian facility

John Deere, the largest tractor manufacturer in the world, is planning to set up its second Indian facility very soon. This facility would be in addition to its existing plant at Pune, which mainly produces large (50 HP and above) and medium (40-50 HP) tractors. Currently, the Pune plant manufactured 50,000 odd tractors in 2010, of which 35,000 units were sold domestically and the balanced exported to 46 countries. The proposed facility, the location of which is yet to be decided, will primarily manufacture small 30-40 HP tractors. John Deere has an eight per cent share of the Indian market. It is the No. 1 player in the large HP tractors. The new plant is expected to commence the production towards the end of 2012. It is aimed at bolstering the company’s presence in the small HP segment in the Indian market.

Dow discovered new molecule

Dow AgroSciences has identified a new lead molecule for advancement in its alliance with Hyderabad-based GVK Biosciences. This newly identified compound has been selected for its ability to address a key product goal as part of Dow’s growing agricultural chemicals business. Dow Agrosciences had signed discovery research agreement with contract research firm GVK Bio over a couple of years ago to generate new molecules for synthesis and testing as fungicides and insecticides in crops. The two companies have benefited from the expertise in medicinal chemistry and chemo-informatics at GVK BIO, in combination with Dow's agricultural chemical capabilities. The objective of the collaboration was to speed up the search for promising active ingredients for innovative crop protection products. It takes 8-10 years to move from the discovery stage to bringing the molecule in the market. The next step is to conduct field trials in different climatic conditions. The molecule is developed after the successful outcome. The two companies have benefited from the depth of expertise in medicinal chemistry and chemo informatics. They have filed for the Intellectual Property rights too. Both the companies hope that this molecule will be a blockbuster. Experts are of the view that a blockbuster in agricultural segment could fetch anywhere around $300 million as revenues per year!

Boost to Organic farming

Bihar government has started 'organic farming promotion programme' for the cultivation of organic crops in all districts. The state government has decided to develop 38 'organic grams' for which a sum of Rs 255 cr has been sanctioned for five years. This programme is being run under the leadership of AK Sinha, Agriculture Production Commissioner (APC). At the district level, District Agriculture Officer (DAO) has been entrusted with the task of monitoring the programme. Any farmer residing in the chosen villages and having land possession certificate (LPC) can do organic farming. For this, the minimum land requirement is one acre and the maximum is four hectares. In return, farmers growing organic crops will get all the benefits from the government. Farmers in these villages are producing only organic vegetables and fruits, including potato, cauliflower, tomato, cabbage, peas, ladyfinger, carrot, litchi, guava, mango, etc. Under this plan, the government aims to help these farmers in producing natural fertilizers, organic manures, and bio- pesticides. For the first time in India, farmers in the state will get 50% subsidy for the production of vermi-composed.

NABARD institutes Chair for Rural Business

The National Bank for Agriculture and Rural Development (NABARD) has instituted a NABARD Chair Unit for Rural Business at the Xavier Institute of Management, Bhubaneswar (XIMB). Dr Amar KJR Nayak from the Strategic Management Area of the XIMB has been posted as the NABARD Chair Professor from January 1. NABARD MD, Dr KG Karmakar, XIMB Dean-Administration Rev Fr PD Thomas, and Dr Nayak signed an agreement for the Chair Unit recently. The NABARD Chair Unit will engage in action research to develop a sustainable development prism for the small and marginal farmers/producers of rural India.

Milk powder export to grow by 87.5 per cent in 2011

India's export of milk powder in 2011 is expected to grow by 87.5 per cent on increased production of milk in the country, according to a recent report released by the US Department of Agriculture (USDA). Sufficient carry-over stocks from 2010 may increase non-fat dry milk (milk powder) exports from India in 2011. It is said that the overall exports of milk powder in 2010 stood at around 8,000 tonnes. In the current year, the country is expected to export around 15,000 tonnes of milk powder, which is 7,000 tonnes more than the last year's export. India, generally, exports only a small percentage of its total production of milk products due to its growing supply deficit and increasing domestic dairy prices, report mentioned. Last year, the government had allowed the duty free import of 30,000 tonnes of milk powder in 2010 to meet the projected shortage of milk supply during the summer season due to concern over the availability of fodder, following the reports of delay and deficient monsoon. However, better-than-expected monsoon in the later half of 2010 has pushed the production of milk in the country. The report also pointed out that due to the availability of surplus milk powder in the current year, the country may not have to import milk powder.

Agri Varsities in a soup…

Four national universities of repute are in serious trouble after it came to light that they have entered a “secret pact” with one of the leading food brands in the country to promote its goods during their nutrition awareness programs in government run schools. Nestle India had signed a confidential MoU with four universities, Punjab Agricultural University (PAU) Ludhiana; National Dairy Research Institute, Karnal, Haryana; University of Mysore in Karnataka; and the GB Pant University for Agriculture and Technology, Pantnagar, Uttarakhand, under which Nestle sponsored nutritional awareness programs back in 2009.

The MoU states: "This MoU, its existence and all information exchanged between the parties under this MoU or during the negotiations preceding this MoU is confidential to them and may not be shared with a third party." In keeping with this condition, PAU refused to give information when an RTI application was filed seeking information about the MoU and the details of the nutrition education programme. Breastfeeding Promotion Network of India (BPNI) argues that the MoU basically allows Nestle to indulge in brand promotion in the guise of nutritional programs in the public education system. BPNI went on to say that when it had filed an RTI with PAU seeking information, the university refused to give it and, instead, wrote a letter to Nestle asking its opinion about the RTI application. The questions raised are: Why should a national university take the permission of a private company to give information under the RTI Act? They are duty-bound to provide the information. After all, what is so secretive about the contents of a nutritional program? They have sold their autonomy and independence as a national institution to a corporate entity for a paltry sum of Rs 2.5 lakh, the sum Nestle is paying PAU for this project.