Tuesday, 8 February 2011

Pak competition may hit India’s basmati rice exports

Aromatic basmati rice exports from India may dip by 10 per cent to 1.8 million tonnes in the 2010-11 fiscal due to the increased competition posed by neighbouring Pakistan’s produce in Europe, a trade body said. “Total basmati rice export in both volume and value terms are expected to fall by 10 per cent from a year earlier. Exports volume may fall to 1.8 million tonnes,” All-India Rice Exporters Association President Vijay Setia told reporters.

Mr. Setia attributed the slump in exports to growing competition from neighbouring Pakistan in Europe due to pesticide concerns. “Indian farmers are spraying pesticide even after the flowering stage of the crop. And the EU is objecting to this,” he said. In addition, Indian exporters are not keen to export basmati to Iran -- one of their biggest markets -- due to delays in receiving payment for shipments on account of sanctions imposed by the U.S. and United Nations against the Middle East nation over its suspected nuclear programme, said Mr. Setia.

“Iran payment is coming very slowly as it is being routed through Dubai. As a result, it is affecting our market and realisation,” he said. In the 2009-10 fiscal, the country shipped 2.01 million tonnes of basmati rice, mainly to the UAE, Iran, Saudi Arabia, Europe and the US. The export realisation from overseas shipments of Indian basmati was Rs. 10,838 crore last fiscal, he said. In terms of value, exports were down by Rs. 2,500 crore in the review period. The value realisation was $ 1,060/tonne in the first ten months of the current fiscal, compared to $ 1,160/tonne in the same period last year, it said.

Meanwhile, the agri-export promotion body APEDA had recently said India’s total basmati rice exports in the entire 2010-11 fiscal are unlikely to be lower than last year, though a decline in shipments was seen for a brief period in 2010. According to the crop survey conducted by Apeda, total basmati rice production is estimated at 7 million tonnes in the 2010-11 crop year, almost 10 per cent higher than the output of 6.4 million tonnes recorded in the previous year.

Anand Agri-varsity to develop GM Isabgol

In a latest development in the field of crop biotechnology, Gujarat-based Anand Agriculture University (AAU) is developing a genetically modified Psyllium (Isabgol) husk, which will be resistant to the fungal disease called 'downy mildew' and will provide higher yield. "We are trying to increase the genetic reactibility of the plant, which will make it resistant to downy mildew fungal disease. This disease reduces the quality of the crop and also the yield. The transgenic process is being carried out under the marker assisted selection (MAS), wherein we have successfully identified the DNA marker for the plant," said R S Phogat, professor and head, department of agri-biotechnology, Anand Agriculture University. The university took up the research after the complaints from the farmers with regard to the disease and lower yield. "Many farmers from north Gujarat had raised the issue of poor crop quality and reduced yield for psyllium, better known as isabgol. We have taken up the research for this crop and expect to come out with a GM seed that protects the plant from diseases and improves quality and quantity of the crop," added Phogat. Commenting about the safety of the new isabgol seed, Phogat informed, "The transgenic technology that we are using by infusing genes into plants directly, is safer than that is used for BT crops, which has genes infused via bacteria," he said adding that the research will take around 5-7 years to complete.

India produces around 90,000 to 100,000 tonnes of Isabgol every year of which Gujarat accounts for around 22-26 per cent share. The productivity of the crop has remained in the range of 632 kg to 672 kg per hectare in the state. Other major producing states in India are Rajasthan, MP and Harayana.

Isabgol has been an important cash crop for foreign trades. The husk of the grain isabgol has vast applications including medicines. It is also used as a stabilising agent for ice creams besides being an effective laxative. The country dominates the world market in the production and export of isabgol with about 80 per cent of the global supplies. According to the latest data provided by the Director General of Foreign Trade (DGFT), India exported isabgol husk to the tune of 20,658 tonnes valuing Rs 381 crore fur the year 2009-10. In the current year 2010-11, (April - June) total exports of isabgol husk were registered at 19,726 tonnes worth Rs 125 crore. Gujarat holds around 35 per cent share in the country's total production of Psyllium Husk.

Around 90 per cent of the total production of Isabgol in the country is exported, of which 93 per cent is of husk. Major export destinations for husks and industrial powders are US, some European countries including the UK, Japan, Indonesia, Australia, Pakistan and Gulf countries. The US alone buys around 75 per cent of the total supplies from India.

The area under isabgol cultivation is going down at a rapid pace due to climatic adversaries and farmers are shifting to other crops like jeera and fennel seeds or saunf. "Last year, the returns from Saunf and jeera was much higher than isabgol, therefore many farmers have shifted from isabgol to these crops. This has reduced the isabgol acreage almost by 50 per cent over last year. More over, this year, the climatic extremities increased risk from isabgol farming," said a trader in Nagor near Jodhpur in Rajasthan. This has sparked off prices of isabgol. The prices in the spot markets have increased from Rs 4,650 per quintal in the beginning of January to Rs 5,050 per quintal by the end of the month. In last one week alone, the price increased by around Rs 500 per quintal to Rs 5,400 per quintal.

Anand Agri-varsity to develop GM Isabgol

In a latest development in the field of crop biotechnology, Gujarat-based Anand Agriculture University (AAU) is developing a genetically modified Psyllium (Isabgol) husk, which will be resistant to the fungal disease called 'downy mildew' and will provide higher yield. "We are trying to increase the genetic reactibility of the plant, which will make it resistant to downy mildew fungal disease. This disease reduces the quality of the crop and also the yield. The transgenic process is being carried out under the marker assisted selection (MAS), wherein we have successfully identified the DNA marker for the plant," said R S Phogat, professor and head, department of agri-biotechnology, Anand Agriculture University. The university took up the research after the complaints from the farmers with regard to the disease and lower yield. "Many farmers from north Gujarat had raised the issue of poor crop quality and reduced yield for psyllium, better known as isabgol. We have taken up the research for this crop and expect to come out with a GM seed that protects the plant from diseases and improves quality and quantity of the crop," added Phogat. Commenting about the safety of the new isabgol seed, Phogat informed, "The transgenic technology that we are using by infusing genes into plants directly, is safer than that is used for BT crops, which has genes infused via bacteria," he said adding that the research will take around 5-7 years to complete.

India produces around 90,000 to 100,000 tonnes of Isabgol every year of which Gujarat accounts for around 22-26 per cent share. The productivity of the crop has remained in the range of 632 kg to 672 kg per hectare in the state. Other major producing states in India are Rajasthan, MP and Harayana.

Isabgol has been an important cash crop for foreign trades. The husk of the grain isabgol has vast applications including medicines. It is also used as a stabilising agent for ice creams besides being an effective laxative. The country dominates the world market in the production and export of isabgol with about 80 per cent of the global supplies. According to the latest data provided by the Director General of Foreign Trade (DGFT), India exported isabgol husk to the tune of 20,658 tonnes valuing Rs 381 crore fur the year 2009-10. In the current year 2010-11, (April - June) total exports of isabgol husk were registered at 19,726 tonnes worth Rs 125 crore. Gujarat holds around 35 per cent share in the country's total production of Psyllium Husk.

Around 90 per cent of the total production of Isabgol in the country is exported, of which 93 per cent is of husk. Major export destinations for husks and industrial powders are US, some European countries including the UK, Japan, Indonesia, Australia, Pakistan and Gulf countries. The US alone buys around 75 per cent of the total supplies from India.

The area under isabgol cultivation is going down at a rapid pace due to climatic adversaries and farmers are shifting to other crops like jeera and fennel seeds or saunf. "Last year, the returns from Saunf and jeera was much higher than isabgol, therefore many farmers have shifted from isabgol to these crops. This has reduced the isabgol acreage almost by 50 per cent over last year. More over, this year, the climatic extremities increased risk from isabgol farming," said a trader in Nagor near Jodhpur in Rajasthan. This has sparked off prices of isabgol. The prices in the spot markets have increased from Rs 4,650 per quintal in the beginning of January to Rs 5,050 per quintal by the end of the month. In last one week alone, the price increased by around Rs 500 per quintal to Rs 5,400 per quintal.

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.

Technology at work…

Krishnagiri district of Tami Nadu, located at the border of Karnataka and Andhra Pradesh, has seen several cases of pilferage and cross border smuggling of essential commodities meant for public distribution. But now, it has become history, as the district administration has implemented a novel way of keeping a tab on the whole process, right from the point of dispatch from stockyard till the point of delivery to the card holders. The entire chain of network is manned by Geographical Positioning System (GPS), which is fitted into every truck carrying the grains, and tracked online by the co-operative department official. If there is any diversion or a long stopover, the official on duty can alert the field officer to check the status of the vehicle. To check pilferage from fair-price shops, electronic weighing machines have been installed and, at the time of sale, a General Packet Radio Service (GPRS) enabled handheld billing machine is used. Each time a sale is conducted at a shop, the machine prints a bill and the bill is generated in the local language Tamil for the convenience of users and the salesman. As it gets generated, the billing details are updated in the central database and a report is generated periodically to monitor the pilferage. This pilot project will be rolled out in 12 more districts of the state, including Coimbatore, Madurai, Salem, and Tiruchirapalli.

Farm loan@1%

Madhya Pradesh government led by Shivraj Singh Chouhan has announced that co-operative banks would provide farm loans at a meager interest rate of 1 per cent from the upcoming financial year. The state also plans to waive off a year’s interest on standing loans and reduce the interest rate for the following years from 12 per cent to 3 per cent. Besides, government also suspended recovery of loans from farmers affected by recent natural calamities like unseasonal heavy rains and drought, and their land rent were waived off too. All the state department officials are directed by the Chief Minister’s office to have liberal approach while assessing crop losses; otherwise they may face disciplinary action. With this, MP becomes the first Indian state to announce such waivers, which is supposed to come amid reports of farmers committing suicide due to crop failure and recent losses due to frost.

Beating inflation, Andhra way….

Today, food inflation, particular in fresh fruits and vegetables, has become the biggest cause of worry, not only for the common men but also for the Governments. Looking into the same, the Andhra government has come up with a unique initiative to tame the unwarranted situation, which was, till now, in the public domain. The state government has introduced two different family packages of vegetables at subsidised rates. The first package is available for Rs 99, which consists of 1kg each tomato, potato, brinjal, carrot, 1 cauliflower, 1 cabagae, 250 gm green chilli, and 2kg onion. The other pack, priced at Rs 49, will have 1kg tomato, 550 gm each potato, brinjal, carrot, 1 cauliflower, 1 cabbage, 250 gm green chilli, and 1kg onion. This is part of the government’s market intervention scheme. This facility is provided to consumers in all Rythu Bazaars /farmers’ market run by the state government across the state. At present, there are about 100 Rythu Bazaars in the state. This is a first of its kind initiative taken by the Andhra government to supply vegetables and essential commodities in Rythu Bazaars in order to quell rising food prices. This scheme will be implemented in all the districts and the transportation costs will be borne by the govt. The state government will do a review meeting after a month to look into the need of further extension of the scheme.

Rubber and Pineapple intercrop

A win-win situation has been created for both rubber and pineapple growers. It works like this. The pineapple farmers take the rubber plantations on lease for three-and-a-half years. Apart from growing their own crop, the pineapple farmers have to buy rubber saplings, prepare the pits, and plant them as per guidelines of the Rubber Board and the grower. In simple words, pineapples and rubbers trees grow side by side for three years but only till one point. Growers are allowed to plant pineapple shoots in between two rows of rubber saplings. It is the responsibility of the pineapple farmer to take care of the rubber plants for the next three years until the tree forms a canopy, forcing the pineapple to quit the field. The trend of cultivating pineapple as an intercrop in rubber estates began a decade back in the Vazhakkuam region of Ernakulam district. Rubber benefited when small-scale pineapple cultivators of Vazhakkulam, the largest pineapple producing region in the country, began scouting for bigger and newer plots of land to expand their activity. Now, pineapple has become a common cultivation in rubber-growing regions of Kerala. In the past, pineapple farmers had to plead with rubber cultivators to give their land on lease at the time of replantation. But now, rubber planters are approaching the pineapple growers to use their land for cultivation. And as the trend grows, rubber-growing giants such as Harrison Malayalam Plantations and Kottanad Plantations Limited have also started leasing out hundreds of acres of land to pineapple cultivators at the time of replantation. A pineapple farmer has to spend Rs 1.25 lakh per acre in the first year of cultivation, which includes the cost of rubber replantation. In the second and third year, the cost of rearing the rubber and pineapple comes down to Rs 55,000 and a farmer would get a minimum profit of Rs 20,000 from an acre during the three-year planting period. These days, no one would plant pineapples on less than five acres of land. If one cultivates pineapples on 50 acres of land, he would get a profit of Rs 10 lakh. Pineapple farmers, who do not replant rubber, would give Rs 20,000 as lease amount. Out of 640 members of the Pineapple growers’ association, nearly 400 farmers belong to Vazhakkulam and nearby places in Ernakulam district. Farmers have even moved to the Konkan belt and north of Goa, in search of land.

Banana chips rising on branding…

For years, banana chips production was done by an unorganised sector in the major banana growing areas of Kerala and bordering Tamil Nadu districts. With the entry of branded snack food companies, this cottage industry is set for a make-over. Besdies the domestic market, the companies tend to target overseas markets such as US, Australia, UAE, Egypt, Singapore, Thailand, and other Gulf countries in the view of Indian diaspora considerable presence in these regions. Due to the value addition brought by the companies, Banana chips are now sold in more than 10 varieties and flavours like Malabar masala, chilli, pepper, sugar, fruit, and mint flavours. These chips are sold at anywhere between Rs 180- 200 per kg. The spurt is mainly in the region of Kerala and adjoining districts of Tamil Nadu. Coimbatore has almost become the hub of banana chips with the presence of over a dozen companies engaged in banana chips production and exports. ‘Nenthran’ variety of plantain, which is mainly used in the quality chips production, is grown in Kerala and Tamil Nadu. It is very suitable for making chips and has high nutritional value. The demand is high for banana chips. But now the problem is the scarcity of raw materials. So, the industry is in talks with Coimbatore based Tamil Nadu Agricultural University and Avinashilingam University to develop good-quality bananas that can be grown round the year to fulfill the demand of raw material.

Basmati’s fragrance at risk…

Experiments carried at Indian Agricultural Research Institute (IARI) point that global warming may rob the exquisite basmati fragrance. This variety of rice may lose not just its aroma, but the famous long grains may also get shorter. Dr. H Pathak, principal investigator of IARI’s Climate Change Challenge Programme, found that Tarawari basmati grown in research fields in Delhi did not grow long enough and wasn't as fragrant as it should have been when cooked. He said that global warming might be to blame for the disappointing basmati produced in the 2006-07 experiment. Temperatures, that year, had crossed 26 degree Celsius in September when the basmati flowers and, 15 to 20 days later, when the grain begins to fill out, because of which a shrivelling of the grain was seen. Consequently, it failed to grow to the right length. The heat also destroyed fatty acids stored in the grain, which gives basmati its distinct fragrance when cooked. IARI has been receiving regular complaints from farmers about a sudden warming that is damaging rice crops. Pathak says the best solution would be to bring planting dates forward, so that high temperatures in September don't affect the crop. The other solution would be to develop a new, heat-resistant basmati variety, though they generally have smaller yields. Yet, no extensive field studies have been done so far; but if true, global warming may have enormous implications for India's prized basmati crop.

Exclusive agri budget

Karnataka is likely to be the first state in the country to have an exclusive budget for agriculture with a corpus fund of Rs 5,000 crore per year. Agriculture Minister, Umesh Katti, said that discussions with the chief minister were on to present a separate agriculture budget. “There are plans to present the agriculture budget the next day after the presentation of the general budget,” the minister said. Katti said farmers had no access to several facilities that other sectors have. A separate budget for agriculture would help farmers get minimum support prices, relief for cross loss, and a scientific price mechanism. A few laws will have to be amended to provide for the separate budget, the minister added.

Vidyasagar P. awarded

Vibha Seeds CMD, Vidyasagar Parchuri, has been awarded with the "Outstanding AgBio Leadership Award” at AgBio Global Summit, 2011, at Tamil Nadu Agricultural University (TNAU), Coimbatore. This recognition comes for his outstanding commitment and leadership vision in promoting Research & Innovation and Development of quality hybrid seeds and crop genetics programs for the benefit of farmers. His work also maintained our national pride in food security and agriculture education, and the welfare of the Indian farming community at large. The award has conferred by Maryland India Business Round Table Inc. (MIBRT), USA. Vidyasagar Parchuri, the Chairman and Managing Director of Vibha Seeds Group, is a shining example of entrepreneur in seed industry. He has demonstrated how dedication, attention to details, and sheer hard work can transform lives for many, especially the needy rural populace. The meteoric rise of his group of companies in the very competitive Indian Seed Industry is due to his vision and multi-pronged strategy. He attributes his success to key factors such as exploiting novel germplasm, application of emerging technologies, quality seed production and seed conditioning, and timely supply of seeds, along with required training to the farmers. He takes great pride in his own passion for the farmer-centric approach and focused commitment to conduct research and business to bring in and deploy the best technologies and business practices with the sole purpose of modernizing the ailing Indian agriculture.

Monday, 3 January 2011

AgriUpdate 2010, the year that was....

Ayyappan got the reign of ICAR (1 January, 2010)

Dr S. Ayyappan, the most coveted authority on Fisheries sector and the former Deputy Director General (Fisheries) for a long duration has been crowned with Director General of ICAR & Secretary, DARE. He has followed the designated post after Mangala Rai retires on December last year.

Bt Brinjal halted by Jairam

Year 2010 witnessed, strong comeback story of Bt, with Environment Minister Sh. Jairam Ramesh putting an indefinite moratorium on the release of Bt Brinjal, in view of lack of consensus among the farm fraternity and non-readiness of general public for the acceptance of Bt Brinjal and their apprehensions about multitude of issues involving health risks and environmental threats. The not much sought decision came after conducting public consultation and debate among the stakeholders in 5 cities of country (9 February, 2010). Whole episode and month long hearing seen large amount of hues&cries and confrontations among supporters and the anti-groups, and even the ministries, particularly the Environment&Forest, Agri and Science&Tech drawing flaks on one-another, which surely become a good reason for TRPs to the electronic media and meaty material for the print media, which the farm sector was derided since a long.

PK Basu takes charge as Agriculture Secretary to the GOI

Prabeer Kumar Basu, has taken charge as Secretary, Agriculture & Cooperation on 2nd March, 2010. He replaces Shri T. Nanda Kumar who retired from service on February 28, 2010 on superannuation. Mr. Basu is 1976 batch IAS officer of Bihar cadre. He served in various capacities in the Government of Bihar during his tenure, particularly in Finance, Industries, Agriculture & Cooperation and Energy. He was appointed Additional Secretary in the Department of Agriculture & Cooperation from March, 2007 to November, 2009 before being elevated as Special Secretary in the Ministry from November, 2009.

Agriculture loans exceed target by 13% in FY10

Agricultural credit flow by cooperative and public sector banks exceeded the target by 13 per cent in 2009-10. The flow of credit to the agriculture sector increased significantly and banks have surpassed the target by extending Rs 3,67,000 crore worth of loan to farmers. The farm credit was extended to as many as 4.82 crore farmers last year and banks gave crop loan to 91 lakh new farmers. According to official data, public sector banks lent Rs 2,75,000 crore of farm credit, while co-operative and RRBs loaned Rs 58,000 crore and Rs 34,000 crore respectively.

Land acquisition in a trouble

Land acquisition has never been in such controversy in the country, as in the recent years, which even forced the giant corporate houses like, TATA, Vedanta and POSCO to rollback their projects. It has also witnessed the adamant approach of Environment&Forest ministry joining the anti-groups of NGOs.

Rohtas Mal appointed as President – TMA

Mr. Rohtash Mal, ED&CEO, Agri Machinery Group, Escorts Ltd., has been appointed President of the Tractor Manufacturer Association (TMA) for 2010-2011. Mr. Mal succeeds Mr. Anjanikumar Choudhari, President-Mahindra. Mr. Mal graduated from the IIT, Delhi, and is an alumnus of IIM-Calcutta. Before joining Escorts Agri Machinery Group in 2007, he worked with the Bharti Group for over six years and for two years as the CEO of their agri-business.

Photosynthesis is now possible in petri dish too

In a major breakthrough, team of scientists at University of Cincinnati, Ohio has produced sugar from solar energy, using plant, bacterial, frog and fungal enzymes. They have focused on making an artificial photosynthetic material, which uses plant, frog, fungal enzymes and bacteria, trapped within a foam housing, to make sugar from sunlight and carbon dioxide. This technology establishes an economical way of harnessing the physiology of living systems by creating a new generation of functional materials that intrinsically incorporates life processes into its structure. These revolutionary findings about this latest photosynthetic technique have been published in the Nano Letters Journal.

Pawar’s power play

Sharad Pawar, the not so pleased minister with his current portfolio issues such unwarranted statements that ire the senses of common man and in cases, judiciary’s too. Either in the times of drought, flood, food inflation, Bt Brinjal moratorium, grains rotting or, farmers’ suicide, he looked much helpless. In a bizarre move he has been elected as the ICC chief, please do not confuse it with any agriculture or, farmers’ organization; it is World cricket governing body, International Cricket Council. But, here the million dollar question is, what an acting agri minister doing in the cricket pitch, when reform on many of the fronts in the farm sector is still in wait of its field day, taking a huge toll on the food production and the farmers’ very livelihood.

Nutrient based Fertilizer Subsidy implemented

After a great lull and long time demand from the Fertiliser Industry, Government has implemented the Nutrient Based Subsidy (NBS) regime. The move is well considered to be in the direction of promoting the need based fertilizer application, streamlining the availability, regulating the prices and dumping of chemicals as witnessed across many of the irrigated rice bowls of India. The NBS regime was implemented with effect from 1st April, 2010.

Normal monsoon recorded in 2010

A good well spread monsoon across India, except Eastern parts has excited farmers, policy makers and other stakeholders for a buoyant economy.

IARI fee hike episode

In an uncalled for dramatic event, India’s premier Agricultural School, IARI & other Deemed Institutes under ICAR proposed almost 900% (more than 12 times) fee hike (from Rs 6,000 to 67,000 per semester) in their tuition fee, which came as surprise to all. But, at last ICAR pacified and latter rolled back the unprecedented hike after students gone for strikes and no work motion for continuous 3 days.

Rasi started exclusive Hybrid Vegetables Division ‘HyVeg’

Rasi Seed, one of the biggest cotton seed producers has made a foray into hybrid vegetables, with the Seminis man and well known authority in Indian Vegetable Seeds sector, Dr Arvind Kapur joining his team as CEO of the Hybrid Division and its corporate office is based at Gurgaon.

Amarjit Singh Nanda joins as Animal Husbandry Commissioner to GOI

Dr Amarjit Singh Nanda, director of research, GADVASU, Ludhiana, has joined as animal husbandry commissioner of India, the highest post in the field of animal production and health in India. Dr Amarjit Singh Nanda, director of research, GADVASU, Ludhiana, has joined as animal husbandry commissioner of India, the highest post in the field of animal production and health in India.

Anjani Kumar Chaudhary quits M&M

After a tenure spanning a decade at the Mahindra Group, the last five of which were spent leading the Farm Equipment Sector as President, Mr. Anjanikumar Choudhari retired from his role on March 31, 2010. Dr. Pawan Goenka, President - Automotive Sector, assumed the additional responsibility of the Farm Equipment Sector, and re-designated as the President - Automotive and Farm Equipment Sectors with effect from April 1, 2010.

NMMI launched

The Cabinet Committee on Economic Affairs approved the implementation of the existing Micro Irrigation Scheme (MIS) as the National Mission on Micro Irrigation (NMMI) during the 11th Plan period with an outlay of Rs.8032.90 crore, of which Rs.3409.26 crore will be contributed by the Central government, comprising 40% subsidy for general farmers and 50% subsidy for small and marginal farmers. This Mission will result in 2.85 million hectare to be brought under micro irrigation; savings in use of irrigation water, fertilizer and electricity; increase in production and productivity of crops.

IVRI awarded best SAU award

Among the State Agricultural Universities and Deemed Universities, the Best Institution Award for 2010 has gone to the Indian Veterinary Research Institute, Izatnagar. The major accomplishments of the IVRI include recognition of High Security Animal Disease Laboratory (HSADL), Bhopal, as OIE approved reference laboratory, seventh in the world, for highly pathogenic avian influenza diagnosis. The awards were given on the ICAR Foundation day celebrated every year on 16th July.

Drought haunts eastern India

Severe monsoon failure in the Eastern parts of the country hit the agricultural production in the states of Bihar, Jharkhand, Orissa, West Bengal, Assam and Eastern Uttar Pradesh. This caused a state of dilemma for the region’s farmers, as till recently these parts is known to receive more than sufficient rainfall and promises to be the seat of the 2nd Green revolution, which is blessed with highly fertile alluvium soil of Gangetic belt and enough surface irrigation resources.

Escorts win Indian Tractor Industry’s largest order

India’s leading tractor manufacturer, Escorts Ltd., set a new benchmark by winning Indian tractor Industry’s largest ever deal for tractors, valued at Rs 185 cr. by the Government of the United Republic of Tanzania. Escorts has been chosen to supply 1430 units of its premium range of powerful ‘Farmtrac’ tractors to Tanzania which is implementing a national ‘Food Sufficiency Programme’ aimed at making it a food surplus country.

Moderate hike for Wheat MSP, as Pulses get more

GOI, on the recommendation of CACP revised the MSP for wheat, rice and pulses. There was a marginal hike of Rs 20 a quintal in the support price of wheat to Rs 1,120, but the prices of masoor and gram dals have been raised sharply by up to Rs 380 a quintal to encourage farmers to grow more. There is also an increase in mustard MSP by Rs 20 to Rs 1,850 per quintal. Safflower MSP has gone up to Rs 1,800 from Rs 1680 a quintal. Barley MSP has been increased to Rs 780 from Rs 750 per quintal.

Food rotting reported all over

Thousands of tonnes of foodgrain found rotting in the FCI godowns across the country due to apathetic

attitude of the concerned authorities and lack of storage space. Even the SC has lambasted the Food &

Civil Supply ministry over the issue and asked the Ministry to freely distribute the foodgrains lying outside the godowns but Agri ministry, Govt and PM refuted for the same.

M&M institutes Agriculture Awards

Mahindra & Mahindra, the largest tractor manufacturer and supplier has started the Samriddhi Awards for honouring the Indian farmers. The awards would be given under six categories to farmers, agro-entrepreneurs an agro based industries for delivering farm prosperity through their involvement in various links of agri value chain which help the farmers to maximize the value they create.

Borloug Institute to be established in Bihar

After ICRISAT another International Institute got a place over the Indian map, with the proposal of establishment of Norman Borloug Institute at PUSA, Bihar. The state is now in a mood of jubilation on announcement of establishment of the new internationally acclaimed institute known as the Borlaug International Institute which is famous for its study of Green Revolution and its after-effects. This Institute will function under a determined quality staff from Mexico.

Controversies hover over Seed Bill

Seed Bill caught into controversy over issues of mandatory registration of varieties which was previously voluntary, GM crops regulation, compensation mechanism and more stakes for private sector at the cost of farmers. Many states are demanding for the inclusion of price control mechanism in the proposed bill.

Food Security Act; still a farsighted dream

Food Security Bill caught into hold due to various reasons of faulty enumeration in BPL families and planning commission’s reluctance to budge over giving it a green card. It is speculated by most of the people and policy makers that UPA-2 is knowingly delaying it, to use its credit for incumbent govt. on election time to reap over the benefits of the same, alike MNREGA and loan waiver, which become the lifeline for the UPA-2.

NBRAI all set to get a nod from Govt

The much-awaited National Biotechnology Regulatory Authority of India Bill (NBRA Bill) could not make it to the parliament for its final nod this time too, as the parliament ended its winter session without passing a Bill. NBRAI was much talked mainly due to the Bt Brinjal episode involving infighting between different ministries with their differing views and agendas over the same.

ASRB goes pre and mains

Year 2010 seen much awaited reforms in the recruitment process of Agricultural scientists, as the pattern of selection from a single exam has moved to 2 stages, with ASRB conducting first pre and only the qualified candidates sitting for mains. Ultimately, the interview assures the final candidature of the aspiring farm scientists, which in turn of results gets recommended to be inducted into the prestigious services.

NDRI cloned male buffalo calf “Shresth”

National Dairy Research Institute, NDRI, Karnal has achieved yet another feat by successfully cloning a male buffalo calf named ‘Shresth’. Scientists of N.D.R.I Karnal made this achievement during early hours today through the new and advanced ‘Hand-guided Cloning Technique’. The hand-guided cloning technique developed at NDRI, is an advanced modification of the “Conventional Cloning Technique”. Earlier the NDRI has produced the world’s first cloned buffalo calf on 6th February, 2009 followed by second on June 6, 2009 and third on August 22, 2010.

RBI divested its 50 % share in NABARD

The Reserve Bank of India (RBI) on October 30, 2010 divested its 71.5% stake in National Bank for Agriculture and Rural Development (Nabard), to the government, bringing down its holding in the bank to 1%. The stake transfer has been valued at Rs 1,430 crore. Following this, the government stake in the development financial institution has gone up to 99%. The move is in line with the Indian central bank’s strategy to bring down its holding in the development finance institutions and pass on the majority control to the government.

India explores Chinese way of storing grains

In the view of growing resentment among the masses and the apex court from the reports of spoilage and wastage of lakhs of tonnes of food grains in FCI godowns across the country, Ministry of Food Distribution and Civil supplies gone into the serious action mode and decided to expand the existing capacity of available storage spaces with the procurement agencies. Regarding the same, Minister of State for Agriculture, Food distribution and Civil Supplies, Prof. Thomas and other concerned authorities made a quick trip to China to learn the expertise on modern grain storage techniques from the neighbouring country.

Kapil Mehan joins Coromandal Int’l

Coromandel International has appointed Mr Kapil Mehan, Tata Chemicals former executive director, as the managing director of the firm on 19th October, 2010. Mr Mehan would replace Mr V Ravichandran, who resigned. Mr. Mehan joined Coromandel as Chief Executive Officer on September 20, 2010. Earlier in 2003, he has worked as Chief Operating Officer of Coromandel's fertiliser business. He is a graduate in Veterinary Science from PAU, Ludhiana and also holds postgraduate diploma in management from IIMA.

Natural Rubber prices to remain tight in 2011

Increasing demand from rubber manufacturers coupled with stagnant production could lead to a shortage of upto 5 lakh tonnes in the country in the next 5 years time. Country’s rubber supplies peak October-January, but this year unseasonal rains have been hindering tapping. India, world 4th largest producer is likely to produce around 8, 50,000 tonnes of natural rubber in 2010-11, down 4.8% from the earlier estimate of 8, 93,000 tonnes, after heavy unseasonal rains affected tapping. So, in the view of increasing demand and unfavoured production conditions, the global prices are bound to fly the sky.

4th Indian Horticulture Congress concluded

Under the leadership of Dr KL Chadha, Horticultural Society of India (HIS) in association with Skill Foundation of India (SFI) organised 4 day long International Horticultural Congress at New Delhi. The event also witnessed a Horticulture Expo with the presence from many of the stakeholders from both the public and private sectors.

Harder days ahead for MFIs

After much hype and hoopla, Micro Finance sector reached to its low with much of the revelations about the operations and fraudulent dealings with naïve small and marginal famers, particularly the women. To regulate the same, first time in the country, Andhra Pradesh has come up with a bill to monitor the Microfinance Institutions (MFIs) which are under scanner for allegedly imposing exorbitant interest rates and coercive loan recovery methods. The legislation, if passed without any amendments, would spell doom for the microfinance industry.

Unseasonal rains caused havoc

The untimely rains in November-December months have affected crops and livelihood in the entire central, southern and western parts of the country. Though, no estimated data has been released by the state governments, losses worth many crores have incurred due to the unseasonal deluge. These rains have just shot up the prices of many of the commodities in the market. The worst affected crops are paddy, onion and grapes.

US bullying India

US pressing India hard on the wide ranging issues of FDI investment and opening the Indian market for the MNCs and US based companies, Monsanto and Wallmart. Since the Diwali time visit of the US Head Barack Obama, States officials have issued many of the contradictory statements, including hitting of the Indo-US relations and Knowledge Initiative in Agriculture (KIA), which has fruited least to the benefit of both the nations even after its much talked launch and aspirations out of that.

Dow Agro Chemicals facing ban

Dow Agro Sciences India Ltd. faces ban on purchasing of chemicals in India, following its persistent refusal to respond to show-cause notices over charges of bribery. CBI had recommended for blacklisting the firm as it was found guilty of bribing government official for pushing three substandard pesticides.

International Parthenium Congress 2010

3rd International Parthenium Congress held on December 8 – 10, 2010 at New Delhi under the patronship of Dr RS Paroda and Dr. M. Mahadevappa. This year’s conference theme was “Integrated Management of Parthenium linked hazards to plant, human and animal health for sustainable Biodiversity”, as the weed has attained a national status in several countries including India.

Jairam’s Climate change(d) stand

Today, as everyone is facing the brunt of the climate change and India is one among the victim of the naturally happening man-made catastrophe. But as per the earlier policy of GOI and Environment ministry, the view of India was to go for emission cuts purely on voluntary basis, rather than the changed view of Mr Ramesh, on the basis of growth equity and in accordance with common but differentiated responsibilities in their respective capabilities. The stand is clear deviation from earlier ones and no binding clause, so, astonishing everyone for the same and ask for Environ Minister come clear on the same from the Cancun. Developed nations have already caused much harm to the fragile environment but always blaming the underdeveloped economies for all the global woes. But due to widespread pressure from the league of developed economies, the policy seems to have change its course.

UP mega Food Scam

In the season of scams, another mega scam joins the league with the amount exceeding Rs 25,000 crores in many of the districts of Uttar Pradesh. CBI, the investigating agency in the case is expected to register more than 5,000 FIRs across the state, wherein lakhs of tonnes of food grains means to be distributed for BPL and economically weaker section of the society siphoned to other states and even to the neighbouring countries of Bangladesh and Myanmar.

Sanjaya Rajaram awarded with 5th Dr. MS Swaminathan award

Dr Sanjay Rajaram, the renowned Wheat Breeder and World Food Prize laureate has been bestowed with 5th Dr MS Swaminathan Award. He is currently heading the wheat improvement programme of CIMMYT, Mexico after the demise of Dr Borloug. He is involved in the development of more than 450 wheat varieties at CIMMYT during his three decade old association with the premier institute. Earlier the award has been given to likes of Norman E. Borloug, GS Khush, SK Vasal and Rattan Lall for their unmatched service to the farmers and agriculture at global level.

Onion does it again

The powerful Onion is again back in news, with its skyrocketing retail prices, in the view of heavy losses incurred mainly due to the untimed rains in western and southern parts of India (including in regions of Nashik, Pune and Gujarat, the main onion producing and exporting centres). But the noxious role of arthiyas and other middlemen are also to be blamed for the same. Government forced to ban the exports and import Onions from Pakistan to check the prices and it was under control within two weeks but still it is unaffordable for many, as it is touching Rs 50 per kg.

Cotton; export check in the times of bumper harvest

Even as country is heading towards record cotton production this year over a good monsoon. The govt., agri and commerce ministry is still to solve the riddle of surplus production and its utilization/ trade. Most of the farm commodities are stored in open, they are found to get rot, in view of any rains/ or, natural and man-made disaster. Gujarat has only estimated some lakh crores of loss due to this inaction, leaving aside the unreported losses spread across cotton growing states.

Satisfactory agriculture growth in 2010

Riding on a strong performance by the agriculture and services sectors, the Indian economy posted a better than expected growth rate of 8.9 per cent for the second quarter of 2010-11. The farm sector grew 4.4 percent from a year earlier due to a good monsoon and a low base effect, up from 0.9 percent in the corresponding quarter a year ago. The recovery in agriculture is likely to have a positive impact on rural demand in the coming quarters and maintain the positive momentum in the economy.

India opposes to global call for the ban on the usage of Endosulfan

India, the largest producer and consumer of Endosulfan has opposed the global ban of the ill-fated chemical, after much dramatised events of anti-pesticide lobby groups documented and presented many cooked data and stories of health and environmental impacts of the same, mainly in the cashew plantations of Kasargod district of Kerala in the view of its rampant use. Indian side has clarified its stand of not favouring the move to ban the pesticide in lack of any strong evidence and review done by several committees, declaring Endosulfan as safe for both human beings and ecology.