GM FOOD LABELLING + Basmati Rice Export + Wheat Dehoarding Drive

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In This NEWS Bulletin ******************************* 1. US Opposes India's Initiative On Labelling Of GM FOODS 2. FARM FRONT Column Urges For Conservation of Farm Lands - Also says - Hopes for increasing productivity through transgenic technology seems remote, given the controversy surrounding GM crops related to health and environment hazards. So far, the claims of developed GM crops are for insect and herbicide-resistance and not for increasing productivity. Thus the country faces a challenging task of continuing to ensure food and nutritional security. 3. Government Re-imposes Stockholding Limits On Wheat And Pulses To Curb Hoarding 4. Indian Basmati Exporters Eye Markets In China And Mexico -------------------------- US opposes India’s initiative on labelling of GM foods http://www.financialexpress.com/fe_full_story.php?content_id=138600 ASHOK B SHARMA Posted online: Monday, August 28, 2006 at 0000 hours IST NEW DELHI, AUG 27: The US has raised concerns over India’s plans to formulate labelling norms for genetically modified (GM) foods at the WTO committee on technical barriers to trade. US has urged India to rather resolve the issue through a dialogue between the regulatory specialists of both the countries. It said that both the countries believe in biotechnology as an important tool for enchancing farm growth and hinted at the recent US-India accord on agricultural research and education. US believes

that GM foods are "substantially equivalent" to their non-GM counterparts and any attempt to segregrate and label GM foods would amount to "trade restrictive measures." It has said that India should notify its decision for labelling of GM foods before the WTO panel also as a sanitary and phytosanitary (SPS) measures since it involves "approval for biotechnology". The new India’s Foreign Trade Policy (FTP) had made labelling mandatory for imported GM products and also prescribed penalty for imports of unlabelled GM products. Accordingly, the health ministry took up the onus of finalising the details of labelling norms. The ministry has recently set up a taskforce for the purpose. As the detailed guidelines for labelling are yet to be finalised, the directorate-general of foreign trade has deferred its decision to insist on labelling till March 31, 2007. Apart from labelling, is the issue of

allowing its imports. As per the existing law, the Genetic Engineering Approval Committee (GEAC) is the only authorised body to approve import, production and sale of any GM product. So far the only GM crop approved in the country for commercial use is Bt cotton. US has questioned India’s approval process for GM products and said: "The scope of the 1989 Rules under the 1986 Environment Protection Act is vague and appears to be broader than any other existing regulatory system in the world for biotechnology products." It has questioned the rational for such broad product coverage and measures. US has sought clarification for use of GM material in industrial production. It has asked whether the GEAC's recent approval process for import of GM soyaoil would be the same for other imported GM products and whether there would be a testing regime for imported GM products. It has also asked whether the law would be same for the

domestically produced GM products like Bt cotton seed cakes used as animal feed.------- FARM FRONT Column Farmlands need to be conserved http://www.financialexpress.com/fe_full_story.php?content_id=138588 ASHOK B SHARMA Posted online: Monday, August 28, 2006 at 0000 hours IST There is a rising trend for sale of farm lands to fulfill the objectives of rapid urbanisation and for several development projects. Many state governments are acquiring prime farm lands and leasing them out to the private sector for setting up projects. There can be no objection to real development needs, but consequences of the sale of prime farm lands for non-agricultural purposes need to be carefully weighed in light of the country’s food

security. Our food production, though on increase, has not been able to keep in pace with the rate of growth of our population. The net per capita availability of food items has shown a declining trend. The per capita net availability of cereals per day has fallen from 458.1 gm in 2002 to 407.1 gm in 2003. The net per capita availability of pulses per day has fallen from 35.4 gm to 29.1 gm, according to government data. Since 1951, the per capita availability of foodgrains has increased with the increase in production. At times, the increases were in spurts and so also the declines. But the recent declining trend in per capita availability of grains is a major cause of concern. In terms of increase in productivity of various agricultural crops, this had taken place with the ushering of the Green Revolution (GR) in the country. But the GR had subsequent negative fallouts resulting in sharp declines in factor

productivity. The chemical agriculture introduced as a result of the GR resulted in excessive tillage of soil, degradation of soil due to excessive use of chemical fertilisers and pesticides, depletion of groundwater table, pollution of environment and health hazards created due to use of chemical pesticides. The overall decline in factor productivity has resulted in deceleration in agricultural growth. The yield per hectare of various crops, which marked a significant increase in the Green Revolution days, has not shown further increase. The productivity of most crops are still lower than that in China, let alone the developed world. Hopes for increasing productivity through transgenic technology seems remote, given the controversy surrounding GM crops related to health and environment hazards. So far, the claims of developed GM crops are for insect and herbicide-resistance and not for

increasing productivity. Thus the country faces a challenging task of continuing to ensure food and nutritional security. In such a situation, it would not be advisable to encourage sale of prime farm lands for non-farming uses. The alternate way is to use some identified wastelands for non-agricultural purposes. The ministry for rural development has done an excellent job in identifying these wastelands in the country. The identification has been done through physical verification and remote-sensing. The Wasteland Atlas-2003 (WA) has identified 5,52,692.26 sq km of wastelands, accounting for 17.45% of the total geographical area of the country. Land is administered by concerned state governments. It would be better for the state government to take possession of some of these wastelands for development projects to be initiated either by them or by the corporate sector. But there are some

wastelands like the waterlogged or marshy ones, lands with saline and alkaline soil, land without scrub, lands abandoned due to shifting cultivation, degraded forest lands and degraded pastures. These lands can be brought back to agriculture or used for afforestation and hence their reuse for cultivation or forestry should be given the first priority. The paper and pulp industry can also use some of these lands. There are some wastelands on account of mining operations and industrial use. The WA has identified 1421.72 sq km wasteland due to mining operation and another 555.63 sq km due to industrial use. Some of these can be taken up for development projects as the area has already been developed on account of mining and industrial operations. Of course, the state governments may face the problem of earmarking wastelands for development projects as many of them may be located at remote places. The viability of

development projects also needs to be ensured at these locations. But if development projects are initiated in remote areas, it may result in new growth centres. The daunting task is, therefore, to weigh food security vis-a-vis development.------- Wheat & pulses hoarding curbed Govt re-imposes stockholding limits http://www.financialexpress.com/fe_full_story.php?content_id=138465 ASHOK B SHARMA ECONOMY BUREAU Posted online : Saturday, August 26, 2006 at 0000 hours IST NEW DELHI, AUG 25: The government has re-imposed various controls, including stockholding limits on wheat and pulses trade, to hold the price line of

these two commodities. The stockholding limit for these commodities was removed by the previous NDA government in February, 2002. Subsequently, in June 2003, the same government removed licencing requirements, stock limits and restrictions on movements of specified foodstuffs, including wheat and pulses. In view of the prevailing price situation, these two orders have been kept in abeyance for six months, government sources said. There would, however, be no restrictions on inter-state movements or imports, they added. A notification to this effect was issued on Friday under the Essential Commodities Act. The order empowered states to launch de-hoarding drives. The Cabinet, which met on Thursday, took stock of the rising trend in prices of essential commodities due to large-scale hoarding of stocks. Further, imports of these two

commodities would also be kept out of the purview of any controls by the state governments in order augment domestic supplies. • Control orders brought back to rein in prices of wheat and pulses• The restrictions will be for six months• Govt bows to the demand of Congress CMs and party’s farmers’ outfit But the central and state governments may direct concerned importers to declare receipts of stocks of these commodities and stocks retained by them. A central order to this effect is under consideration. Reacting to a representation made by her own party’s farmers’ outfit, Bharat Krishak Samaj, Congress president and UPA chairperson Sonia Gandhi had raised concerns over the rising trend in prices due to large-scale hoarding. She subsequently discussed the issue at a meeting of the Congress Working Committee and the meeting of the chief ministers of the Congress-ruled states in July 4. The

chief ministers had demanded restoration of norms relating to stockholdings.- Exporters see China, Mexico as good Basmati markets http://www.financialexpress.com/fe_full_story.php?content_id=138328 ASHOK B SHARMA ECONOMY BUREAU Posted online : Friday, August 25, 2006 at 0000 hours IST NEW DELHI, AUG 24: Rice exporters have urged the government to work on mutual recognition of quality norms with China and Mexico for export of Basmati rice. The exporters foresee market access for about 5 lakh tonne of Basmati rice into these two countries within a span of five years. Export of Basmati rice from India in 2006-07

is likely to be at 1.5 million tonne (worth Rs 27 billion) and that non-Basmati rice at 60,000 tonne. Gulf countries are the biggest market for Indian Basmati, accounting for over 65% of export. About 15% of the exports is to Europe. Long-grain aromatic rice is grown in India and Pakistan and India accounts for 1.7 million tonne. India exports about 1.12 million tonne of Basmati rice and about 3.6 million tonne of non-Basmati rice. Speaking to mediapersons on Wednesday, managing director of Amira Foods India Ltd Karan A Chanana said: “Exporters need support from the government in opening up of new markets in Mexico and China. Already Thai Jasmine rice has found its way into China. Brazil has emerged as a major rice producer, outside Asia.” Chanana sought removal of local taxes and levies on rice, creation of separate boards for exports of Basmati

and non-Basmati rice varieties. He said the government needed to classify other scented non-Basmati rice for exports. The total market size of Indian rice industry is estimated at $25 billion, second only to that of China. The anuual output of rice is about 89 million tonne, out of which exports account for 4%. Global rice trade is about 25 to 27 million tonne.------

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