Wheat production to be all-time high this year

Union home minister P Chidambaram may consider UP as a block in India's development but the state contributes 30% in the national food basket, whereas it constitutes 16% of the land and 18% of the population.

The good news is that the food share this year is all set to increase further with wheat harvest expected to be over 300 lakh metric tonnes. UP is country's top wheat producer and this year, the production is expected to be all-time high.

The wheat production target for this year was 280 lakh metric tonne. "While the conservative estimates made earlier had put the harvest at 288 lakh metric tonnes, the actual production is expected to be around 316 lakh metric tonnes," said director, agriculture, Mukesh Gautam. The production of pulses is expected to be 17 lakh metric tonnes and oil seeds 7 lakh metric tonnes, which is also high in comparison to previous years.

The increase in production is because of increase in acreage, favourable weather and good management. Against 93 lakh hectares last year, the wheat was sown in 96.90 lakh hectares in 2010-11.

The state government has set a target of procuring 40 lakh metric tonnes of wheat for public distribution system, which is one lakh more in comparison to the last year. Nine state government agencies have been asked to set up 4,443 wheat procurement centres all over the state. The wheat will be purchased at minimum support price (MSP) of Rs 1,120 per quintal from April 1 to June 30. A ceiling of 5 lakh metric tonnes has been put on the bulk purchasers, like flour mills and agri industries.

Another condition for the bulk purchasers would be that the wheat purchased will be used by them and not exported to other places. "The provision has been made to ensure good returns to farmers," said a senior state government officer. Though the bumper wheat crop would help in keeping inflation down, the farmers are a worried lot. Reason - the bumper crop means surplus which results in drop in purchase prices."Last year, farmers had to sell their wheat at Rs 900 per quintal against MSP of Rs 1,100 per quintal to private mills due to surplus.

The farmers had suffered losses also due to shrivelling of wheat grains due to excessive heat in the month of March," said Yogendra Singh, a farmer. Kisan Jagriti Manch president Sudhir Kumar said that the government will have to prevent mill owners and agri industries from coercing small farmers to sell their produce at low prices. Another problem would be of the storage. Last year, thousands of metric tonnes of procured wheat was left in the open to rot due to lack of godowns. This year, besides their own godowns, the Food Corporation of India is also taking private godowns on rent for storage, said officials.

India''s onion exports plunge due to high MEP

Owing to high Minimum Export Price (MEP) of onion after lifting of ban in late February, shipment of the bulb from India dropped to as low as about 10 per cent as compared to last year, a development which helped onion exporters of Pakistan, China and Iran having lower MEP. Indian onion traders contracted only 27,300 tonnes of the root vegetable from February 17 (when the government lifted the ban) to March 23 this year, sources in agri-cooperative Nafed, the main agency for contracting onion export, said. The country had exported 2.81 lakh tonnes of onion during the corresponding period a year ago, they said. The government has slashed the MEP of onion other than Bangalore Rose Onions and Krishnapuram onions, to USD 170 a tonne on March 31, 2011 from USD 600 per tonne on February 17. Following strong intervention by Union Agriculture minister Sharad Pawar, the government had on March 1, this year brought down MEP to USD 450 per tonne from USD 600 a tonne. Later, it was brought down in quick successions to USD 350 a tonne, USD 275 before bringing it to USD 170 on March 31 this year. The government had imposed a ban on export of the kitchen staple after its domestic prices had skyrocketed to Rs 80-85 per kg in December last year. However, following crash of prices within the country, the ban was lifted. The sources attributed the sharp fall in onion exports to the ban and later fixing MEP at a higher level which rendered the vegetable uncompetitive in the international markets. Higher MEP in India helped countries like Pakistan, China and Iran whose export prices ranged between USD 170-200 during February-March this year, the sources said. They said the impact of bringing down the MEP to internationally competitive level of USD 170 now would take at least a month to lift the volume of export from India. India exports onions mainly to West Asia, Singapore and Bangladesh. The period November to February end is considered a peak season for onion export as international demand for the veggie multiplies due to festivals. Sources in NHRDF (National Horticulture Research Development Foundation), an arm of ICAR, which monitors onion cultivation, said Nashik in Maharashtra, the major producing region, has been witnessing surplus arrival of onion following high late kharif production. Main onion wholesale markets like Lasalgaon, Pimpalgaon and Pune are witnessing large arrival of the veggie in the range of 20,000 to 25,000 tonnes daily nowdays, Director NHRDF Nashik R K Gupta told PTI over phone. Rabi harvesting of onions is going to start soon which would further glut the markets, Gupta added.

India takes to contract farming in a big way

Asit Tripathy, Chairman of Agricultural and Processed Food Products Export Development Authority (APEDA) has pointed out that Indian states need to promote contract farming to ensure that farmers get remunerative prices and assured market for their produce apart from getting freed from the clutches of middlemen.

India's national agricultural policy also envisages private participation through contract farming and land leasing arrangements to allow accelerated technology transfer, capital inflow and assured market for crop production, especially oilseeds, cotton and horticultural crops.

According to Asit Tripathy, contract farming is taking place in different forms in various states in the country. Addressing a conference on ‘Agro exports from Andhra Pradesh – present emerging scenario' in Hyderabad organised by APEDA and Confederation of Indian Industry, he pointed out that because of small holdings, farmers are not able to invest and see surplus produce.

According to official estimates, there are 25 big and small private companies engaged in contract farming for various commodities - it includes AVT Natural Products Ltd in Marigold caprica chilly in Karnataka, Escorts Ltd in basmati rice in Punjab, Nestle for milk in Punjab, Cargill India Pvt Ltd for wheat, maize, soybean in Madhya Pradesh, Hindustan Lever Ltd for wheat in Madhya Pradesh. The complete list is available in http://agmarknet.nic.in/ConFarm.htm

Contract farming involves a pre-agreed price between the company and the farmer. The agreement is defined by the commitment of the farmer to provide an agricultural commodity of a certain type at a time and a price and in the quantity required by a committed buyer, mostly a large company

PepsiCo was the first company in India to start contract farming of tomatoes in Hoshiarpur district of Punjab . Reliance Life Sciences, ITC (agri-business division) and McDonalds are some of the prominent business giants, which have either started contract farming projects already or are in the process of actively discussing them with various state governments. PepsiCo and other companies have used the contract system for the cultivation of Basmati rice, chilli and groundnut, as well as for vegetable crops such as potato. The amendment of amendment of the Agriculture Produce Marketing Committee Act in 14 states, which allows farmers to sell their produce in open markets has enabled the growth of contract farming by allowing big investment by corporates in the segment.

Benefits of Contract Farming

1) Farmer gets rid of middlemen and gets assured price

2) Farmer gets the inputs and only needs to put in land and labour as his contribution

3) National Policy assures that land will be permanently owned and cultivated only by farmers.

4)Farmer gets freed from the clutches of money lenders

Last year, Business Standard reported on 6500 potato farmers in Bamunpara in West Bengal who got a market price of Rs 6-8 per kg when market prices crashed to as low as Rs 3-3.50 per kg on bumber potato crop in the region. Thanks to the contract farming tie-up with Pepsi Co, several farmers escaped the market crash.

What PepsiCo started as a pre-condition to its entry in India is today its most welcomed programme. When it entered India in 1989, the Indian government had made it mandatory for the company to do contract farming in the country, to help farmers improve crop yield through adoption of latest agricultural technologies.

The company identified tomato processing as a potential activity, as tomato paste was used by Pizza Hut/KFC/Taco Bell restaurants, part of PepsiCo at that time. The company tested this for about four years. The efforts resulted in manifold yield improvement of tomatoes from 16 tonnes/ha to 52 tonnes/ha. The improved yields helped increase farmer incomes despite lower prices to the consumers. PepsiCo entered into pre-agreed price contracts with the farmers. This was the beginning of contract farming in India, The Business Standard report added.

Amul is now $3 bn brand

Co-operative dairy giant Amul is now a three billion dollar brand. The Gujarat Co-operative Milk Marketing Federation (GCMMF) that markets brand Amul has reported a sales turnover of Rs 9,780 crore for the fiscal year 2010-11, a growth of 22 per cent over previous year when it had registered Rs 8,002 crore annual turnover. Putting together direct sales done by all the 13 district dairy unions of Gujarat, which are member unions of GCMMF, sales turnover of brand Amul has touched the Rs 13,500 crore mark - US $ 3 billion.

"We have now set the target of crossing sales turnover mark of Rs 12,000 crore for the current fiscal year, which is in tune with our target of achieving sales turnover of Rs 30,000 crore by 2020," managing director of GCMMF R S Sodhi told TOI on Saturday. Amul had achieved the distinction of becoming country's first billion dollar co-operative brand just four years ago in 2007.

At the same time, sales of Amulspray, which is India's largest selling infant food, has crossed Rs 1,000 crore mark turning the infant food into a Rs 1,000 crore brand.

"In all major product categories, we have received double digit volume growth. In spite of increase in prices, there is tremendous growth in sales of Amul milk, butter, Amulspray, Amulya, cheese and paneer," says Sodhi.

Sale of Amul milk has brought in revenues to the tune of Rs 4,300 crore during 2010-11 up from Rs 3,000 crore during 2009-10 and Rs 2,200 crore in 2008-09. Sale of Amul brand milk is around 70 lakh litres per day at present even as the provisional procurement of milk is three per cent up in Gujarat as all dairies put together are procuring 96 lakh kilogram milk per day against 93 lakh kilogram milk per day, which they were collecting, last year.

The average procurement price paid to farmers including yearly bonus was Rs 337 per kilo fat in 2009-10 which this year will be Rs 425 per kilo fat after counting bonus above Rs 400 per kilo fat presently being paid to the farmers by the dairy unions.

"Farmers have been able to earn Rs 1,700 crore more this year because of increase in price of milk," says Sodhi. "Milk is the only agriculture commodity where in spite of increase in production, farmers have got good returns." For this financial year, GCMMF is aiming to expand its reach to 3,000 smaller towns and cities, especially for its chilled products by hiring 200 super stockists.

Tomatoes to fetch higher price in October

Tomatoes are expected to fetch a wholesale price of Rs1,150-1,350 per quintal in October this year, more than what is expected in August and September, according to an econometric analysis by GB Pant University of Agriculture and Technology.

Under a project, 'Establishing and Networking of Market Intelligence Centres in India,' underway at the Pantnagar- based varsity to help farmers know the likely prices of agriculture commodities well in advance of sowing, the scientists have forecast that wholesale prices of hill tomatoes will be in the range of Rs1,100-1,300 per quintal in August and September this year, a press release said.

However, in October, the wholesale prices of hill tomatoes are expected to be around Rs1,150-1,350 per quintal.

Scientists have, therefore, advised farmers who wish to pursue hill tomato cultivation in the coming season to take into consideration these prices to decide the time of sowing and the area to be sown under tomato crops. The sowing season has started in Uttarakhand.

The research team of scientists conducted a market survey of the Haldwani-regulated market, a major market for hill tomatoes in Uttarakhand, and analysed wholesale price data for the last twenty years in this market to come up with their projections.

Tomatoes are a major vegetable of Uttarakhand, where it is grown both in the hills as well as the plains. Nainital, Dehradun, Udhamsingh Nagar and Haridwar are the four major districts producing tomatoes and constitute about 63% of the total production in the state.

Farmers leaders meet to launch National Body

A meeting of over twenty all India farmers organisations, which took place in New Delhi on March 14 2011, resolved to launch the Federation of Indian Farmers Organisations by end of March with the participation of all the political parties and expert groups. The group deliberated upon and decided to adopt FICCI model structure but to be guided by a presidium to represent interests of the farmers with minimum one farmers association and maximum three from each state. National leaders and former Agriculture Ministers – Sh. Ajit Singh and Sh. Rajnath Singh and eminent scientist, Prof. MS Swaminathan welcomed the idea of forming national federation and expressed their full support to the farmers leaders. The meeting was convened by M J Khan, Editor of Agriculture Today Magazine.

The stormy meeting participated by major farmers organisations also demanded CBI enquiry into the funding of a Delhi based environmental NGO by the European Union for catalysing the formation of pressure group. Dr Krishan Bir Chowdhary of Bharat Krishak Samaj stated that the funding in excess of Rs 56 crore received by this NGO has been misused against the interest of farmers and questioned if lobbying in India by foreign money is legally permitted? He added that a part of these funds were used to generate scientifically incorrect studies against the pesticide Endosulfan. The EU has proposed the listing of Endosulfan as a persistent organic pollutant at the stockholm convention and is pushing for a global ban, which will cause huge loss to the farmers and Indian agriculture.

There are 120 million farmers’ families in India and over 75 million use Endosulfan. As there is no effective substitute for endosulfan millions of farmers will lose their right to choose an affordable and pollinator friendly insecticide said Puneet Singh Thind, President, Rashtriya Kisan Sangathan. He warned that NGOs, no matter how powerful, can not be allowed to play with the interest of farmers.

Farmers also demanded that an Income Insurance Scheme to be raised by Rs. 5,000 crore so that they could be covered by price fluctuation and crop failures. They demanded fair price to their produce and not the subsidy, which they termed is harming agriculture. Asking for MSP to be extended to more crops, particularly the horticulture crops, farmers termed the Union Budget 2011 – 12 as disappointing for farmers, as no major program launched for agriculture development. They expressed concerns that no farmers organisations are invited in pre or post budget discussions, except some MNC sponsored farmers, propped up by industry bodies. On the land acquisition issue, farmers warned that the Governments should not act as property dealers with profiteering motives, and should give farmers minimum 75% of the market rate. And if land acquisition bill is not passed to the satisfaction of the farmers, they will launch a nationwide protest.

Major organisations who participated in today’s meet were Bhartiya Krishak Samaj, Confederation of Kisan Organisations, Rashtriya Kisan Sangathan, Gujarat Farmers Federation, All India Vegetable Growers Association, Bhartiya Kisan Union, All India Apple Growers Association, Bihar Farmers Federation, Association of Haryana Farmers Club, Kisan Cell of BJP, All India Medicinal Plants Association, UP Seed Growers Association, Kerala Organic Movement besides others.

Jairam Ramesh for minimum support price for minor forest produce

In an effort to wean away tribals from the Maoists, the Environment Ministry is pushing for a minimum support price for minor forest produce like bamboo and tendu patta. Environment Minister Jairam Ramesh is taking up the matter with Finance Minister Pranab Mukherjee .

A minimum support price (MSP) for minor forest produce (MFP) would help increase the earnings of the tribal population. At present, the more valuable items of minor forest produce, which includes bamboo and tendu patta can only be sold to state government bodies. While tribals can collect and utilise these minor forest products, the aggregation, processing, value addition and marketing of MFP is in the hands of local contractors, forest official . and forest produce marketing federations. The forest produce is procured from the tribals at very low prices fixed randomly by contractors. The local forest administration is seen to be complicit in this exploitation of the forest dwellers and tribals. A MSP would put an end to the widespread exploitation of tribals. Ramesh is of the view that since these areas fall within the purview Schedule V of the Constitution, the Centre has the power to step in and introduce MSP for minor forest produce.

Experts have pointed out that in the Dandakaranya forests stretching across eastern Maharashtra and south Chhattisgarh, one of the "confidence building" measures undertaken by the Maoists was negotiating "higher" price for the tribals with private contractors. Except the "higher" price was nowhere near the states' minimum wages. But the slight improvement in the earnings ensured that the tribals felt "indebted" to the Maoists. Delhi University's Nirmalangshu Mukherjee argues that the Maoists use the opportunity to work out a deal with the contractors, thereby securing a revenue stream for themselves. While MSP for the produce could help dent this steady revenue stream, it would be required to be administered.

Ramesh acknowledges that merely fixing MSP for minor forest produce will not change things. "The MSP for wheat and rice work because there is a FCI. A similar organisation for minor forest produce is required . The TRIFED could be with the requisite changes in the organsation, perform the same function," Ramesh said. A FCI like organisation, alongside the strict implementation of PESA, which would ensure that rights over MFP are assigned to gram sabhas, could do away with the role of middlemen, currently played by contractors, government controlled departments, and corporations. The minister said he would also take up this issue with the finance minister.

Keen to improve the standing of the forest administration with the tribal population, Ramesh is taking steps to refurbish the image of the forest official. A support price for minor forest produce is part of the slew of measures that have been suggested by the ministry. Other measures include such as amending the Indian Forest Act, 1927 to reduce harassment of forest dwellers, designating bamboo-a key subsistence product-as a minor forest produce, making the joint forest management committees subordinate to the gram sabhas or village assemblies. Through these efforts, Ramesh seeks to address the perception that the experience of the tribals with the forest administration, "the first representative of the state", could have contributed to fuelling support for Maoists in the forest-dominated districts.

In order to improve the interface between the state and tribals, the environment ministry has already eased norms for diversion of forest land for social infrastructure. District officials now take the decision to divert 2 hectares of forest land for setting up schools, dispensaries etc. Ramesh will soon take a decision on whether to increase this relaxation to 5 hectares for PMGSY roads to improve access.

The Cabinet has already approved amending the Indian Forest Act, 1927 to increase the limit to which fines for relatively minor offences can be compounded from 50 to 10,000. Aware that increasing the monetary limit to which offences can be compounded could lead harassment of tribals, the proposed amendment makes it mandatory for forest officials to consult and record the views of the gram sabha or village assembly, before deciding that the law had been violated. There has been some concern, that the amendment makes the gram sabha a consultative body. To address this, Ramesh plans to introduce a change in the proposed clause, making it mandatory for forest officials to go by the decision of the gram sabha.

Last month Ramesh wrote to state governments asking them to declare bamboo as a minor forest produce. The move is expected to address livelihood issues of forest dwellers and tribals for whom bamboo is a traditional source of subsistence.