Farm Income + GM Crops + Controversial Wheat Import +Global Climate Change + Agri News

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In This NEWS Bulletin ************************************* 1. Aim at improving farm income, not magic growth figures, says FARM FRONT Column - No major technological breakthough in sight. Promises of GM Crops proved to be a hoax - Organic Farming, the way 2. Govt admits imported wheat contained dangerous weeds - CONTROVERSIAL WHEAT IMPORT 3. GLOBAL CLIMATE CHANGE : A new shifting pattern in Indian Monsoon rains takes toll on agriculture production 4. Tight global supply to push up prices of pulses, says Assocham study 5. Coconut Development Board aims at 15 billion nuts output by 2012 6. Ambitious plan to raise wheat output by 5 to 7 million tonne ------ FARM FRONT Column

Aim at improving farm income, not magic growth figures http://www.financialexpress.com/fe_full_story.php?content_id=140672 ASHOK B SHARMA Posted online: Monday, September 18, 2006 at 0000 hours IST The process is on in the Planning Commission for formulation of the document for the 11th Plan period (2007-2012). This has given an opportunity to policymakers and economists for projecting rosy targets for farm growth. The often quoted ambitious target for annual farm growth is 4%, which the economists say is necessary to push the overall GDP growth rate to 8% and above. The economists have rightly realised the need for boosting farm growth if the magic figure of overall GDP growth is to be met. A large

section of the population is dependent on rural economy and as much as 70% of them earn their livelihood in rural areas, despite temporary migration to urban areas. Most of the traditional village economic activities have been eroded with the advent of the new economic order. Only agriculture, animal husbandry and poultry have remained as the principal source of livelihood in rural areas. It is interesting to note a confession made by the Planning Commission on the ambitious growth targets in agriculture being projected by the economists. In an approach paper to the 11th five-year plan it said; “Accelerating GDP growth in agriculture to around 4% as envisaged in this paper, is not an easy task. Actual growth of agricultural GDP, including forestry and fishing, was only 1% per annum in the first three years of the 10th Plan and even the most rosy projections for 2005-06 and 2006-07 would limit this below 2% for the

full five-year period. Several modelling exercises suggest that 4% growth of agriculture will not be sustainable from the demand side unless aggregate GDP growth is much higher than 8%.” The approach paper also mentions about the supply side constraints. The Planning Commission has presented an alternate way of push up the farm growth rate, missing real issue which has compelled farmers to commit suicides. But this amounts to escaping from the reality of the situation. Another admission made by the Plan panel helps to make the situation more clear. It said: “The supply side challenge of doubling agricultural growth is also formidable. This is especially so because no dramatic technological breakthrough comparable to the green revolution is presently in sight.” Recently the

government said that it has planned to increase production of wheat by 5 to 7 million tonne. Similar plan is on the anvil for boosting production of other winter crops as well. This can only happen through are expansion under specific crops. But total cultivable land in the country is limited and is rather shrinking due to rapid urbanisation and acquisition of prime farmlands in the name of so-called development projects. Shift in area can happen from one crop to another and that too in not all cases as each specific crop is suited to a particular agro-climatic conditions. If the policymakers are sincere in boosting farm production, then the first priority should be given for conservation of farmlands. The Planning Commission has made an honest admission by saying that no dramatic technological breakthrough in agriculture is in

sight. The claims of transgenic crops boosting farm output have proved to be a hoax. In fact, transgenic crop developed across the world so far are for herbicide and insect tolerance and not for boosting productivity in real sense. What the Planning Commission missed is the fallout of the chemical agriculture under green revolution. Green revolution, no doubt, caused a spurt in production in its initial phase which later stagnated in its growth. The reason for this is the sharp decline in factor productivity. Farmers who have revisited organic farming have begun reaping the benefits of increased production. Corporate involvement, public investment in agriculture and rural development can work out some magic figure of growth. But issues that directly improves farmers’

income needs greater consideration.--------- Imported wheat contained dangerous weeds, admits govt http://www.financialexpress.com/fe_full_story.php?content_id=140786 ASHOK B SHARMA Posted online: Tuesday, September 19, 2006 at 0000 hours IST NEW DELHI, SEPT 18: The government’s wheat import is becoming murkier by the day. It has now admitted that two dangerous exotic weeds had entered the country as the State Trading Corporation of India (STC) imported wheat under the new policy. In the first two consignments of 92,156 tonne, two dangerous weed species, Cenchrus tribuloides and

Solanum carolinense were found. These weed species are of "quarantine concern to India," according to a counter affidavit filed by the government in the Supreme Court to the writ petition by Vandana Shiva and others against the new import policy. Ministry of food and consumer affairs director Rajiva Ranjan further said in his affidavit that 18 other weed species were also present in the imported consignment. However, since these 18 species were already present in the country, they "do not pose any additional risk to our agriculture," he said. According to him, only 63 number of these weed seeds/berries were actually found in 525 kgs of samples drawn from the import consignments. He defended the presence of these dangerous weeds saying, "These quantities (of the weeds) are too miniscule to pose any risk of establishment in our

agriculture and were therefore, released for immediate consumption in the non-wheat growing southern parts of the country." Ranjan said that the Plant Quarantine (Regulation of Import into India) Order, 2003 was stringent and did not allow any traces of weeds like dwarf bunt, ergot, confused four beetle, granary weevil and suggested fumigation by methyl bromide. These provisions were relaxed to facilitate wheat imports on competitive basis. Since the weed seed Bromus rigdus was already present in India, it was deleted from quarantine checks in the subsequent imports, he said. FRONT PAGE GLOBAL CLIMATE CHANGE : Indian Monsoon Rains & Crop Output Govt projects a lower crop output this kharif 2006-07 advance estimates lower than 2005-06 final estimates http://www.financialexpress.com/fe_full_story.php?content_id=140566 ASHOK B SHARMA Posted online: Saturday, September 16, 2006 at 0000 hours IST NEW DELHI, SEPT 15: Farm production in the current kharif (summer) has taken a beating due to a peculiar shift in the monsoon pattern—floods in drought-prone areas and drought in flood-prone regions. The first advance estimate for the current kharif released by the government on Friday shows a dip of 4.7 million tonne in total grain output at 105 million tonne compared with 109.7 million tonne (final estimate) for the same season previous year. Decline in farm output does not augur well, especially at a time when policy makers are targeting an annual growth of 4% in the agricultural GDP.

The prices of different agriculture commodities are firming up in the domestic market and a fall in farm output can aggravate the situation. According to the first advance estimate of crop production, a decline in output is projected for major crops like rice, coarse cereals, pulses and oilseeds. The cotton output, too, is slated to drop to 18 million bales of 170 kg each from 19.5 million bales in the previous year. This is despite a reported increase in land area being brought under Bt cotton cultivation. The rice output is slated to decline to 76 million tonne from 78.04 million tonne in the previous year’s kharif. The output of coarse cereals is also projected to dip from about 27 million tonne in the previous kharif to 25 million tonne. A sharp drop is projected in case of the kharif groundnut crop from 6.22 million tonne to 4 million tonne. Sugarcane

production has, however, been estimated to increase from 278 million tonne to 283 million tonne. The output of jute and mesta will be stable. Although the output of kharif pulses has marginally increased to 5 million tonne from 4.66 million tonne in the same season previous year, it is not enough to meet the country’s demand. In the case of rice, however, the situation may be different as there is ample stock in the country. Only a policy for managing rice supply will be needed. Although the average cumulative monsoon rainfall until September 13 had been good at 98%, the distribution pattern has marked a unique shift from traditional flood-prone areas to drought-prone ones. Traditional drought-prone areas in Rajasthan, Gujarat, Maharashtra and Andhra Pradesh received excess rainfall leading to floods, while flood-prone areas like the Northeast, Bihar and eastern UP received scanty rainfall. This peculiar

behaviour of monsoon damaged the overall prospects of kharif crop.----------------------------- Tight global supply to push up pulses prices: Assocham http://www.financialexpress.com/fe_full_story.php?content_id=140449 ASHOK B SHARMA Posted online : Friday, September 15, 2006 at 0000 hours IST NEW DELHI, SEPT 14: A study conducted by the Associated Chambers of Commerce and Industry (Assocham) has projected a surge in the global demand for pulses in the midst of tight supply in India, Syria and Turkey. The prices of pulses would evidently rule high in the futures market. The increase in demand for pulses in the ensuing Dussera and Diwali seasons would further push the prices in the upward trend. The Assocham study also said Canada is running short of stocks while output in Pakistan is down to 3,50,000 tonne as compared to 9,00,000 tonne in 2005 with its domestic consumption ruling at 7,50,000 tonne. “Global supply constraint is having a severe impact on the Indian market, as is evident in our paper. While we have no say in the international market, we can improve our supply management,” the study said. The study, however, did not say anything about the “tight supply” in respect of wheat and sugar, indicating that there is no shortage of these two commodities in the country. According to Assocham’s technical analysis, there are reports of a shift from desi to kabuli chickpeas in the country while stockists are making heavy purchases. The area under chick peas cultivation increased by 5,30,000 hectare to 77.10 lakh hectare, as compared to 2005 rabi (winter) season. Besides surge

in the global demand, weakening rupee and higher export anticipation is also contributing to firming of Chana prices in the Futures market. Anticipating higher prices before Diwali, stockists have been holding stocks, aggravating the tight supply and the price situation. Besides Channa, the sugar outlook also points towards firming of prices in the international market. The Assocham study has listed out expanding export market, regulatory government policies like tariff rate quota and the worldwide deficit as the factors to watch for the sweeteners. “A major cut in sugar production and exports is expected from the European Union on account of its compliance with a WTO ruling to cut export subsidies (to limit subsidies to the tune of 1.3 million tonne)”, the study said. According to the study structural changes in the longer term like directing processing of cane for

ethanol is likely to divert cane away from sugar production and would affect the sugar supplies. For instance, Reliance is planning to set up cane crushing mills that would directly crush ethanol. Strong demand for ethanol in the reign of higher crude oil prices is expected to divert more cane crushing in to ethanol rather than sugar production, it said.---- Coconut Board aims 15 bn nuts production by 2012 Replantation plans rolled out in non-traditional states http://www.financialexpress.com/fe_full_story.php?content_id=140805 ASHOK B SHARMA Posted online: Tuesday, September 19, 2006 at 0000 hours IST NEW DELHI, SEPT 18: The Coconut Development Board has chalked out an ambitious plan for

replantation of the crop and expansion of the area in non-traditional producing states. The objective of the programme is to achieve a level of annual production of 15 billion nuts by 2012. The board has identified the main constraint, i.e. the price of coconut is largely based on the prevailing price of coconut oil. Though only 35% of the coconut produced in the country is used for extraction of oil, the entire coconut-based economic activities are dictated by the price of coconut oil. The consumption of coconut oil in the country has taken a beating due to cheap imports of vegetable oils. The export of coconut oil in bulk is not possible due to prevailing low global prices of vegetable oils. With a view to take up the challenge of the present situation, the board has decided to encourage product diversification based on the coconut crop. Speaking to the FE, the board chairperson, Minnie Mathews said, “We have planned to encourage use of the nature’s wonder palm to meet varied needs in terms of food, beverage, dietary fat, shelter fuel and other religious and social needs. Production of coconut milk and milk powder, coconut chips and desiccated coconut will be encouraged, virgin coconut oil, coconut cream and milk and tender coconut are emerging as products in great demand in the functional food segment.” She added that use of coconut shell in handicrafts and the use of fibre in geo-textiles, door mats, coir, coco peat, coir pith bags would be encouraged. The board’s initiative, if seriously implemented, would benefit 10 million coconut growers and processors who contribute more than Rs 7,000 crore to the GDP. India ranks third in area and production of coconut in the world with a contribution of 12.15 billion nuts per year

from an area of 1.93 million hectare. In terms of productivity Sri Lanka leads in average productivity of 6285 nuts per heactre, followed by India 6285 nuts per hectare, Indonesia with 4182 nuts per hectare and The Philippines with 3823 nuts per hectare. Global export of coconut products exceeds $ 1.2 billion a year, out of which The Philippines leads with an earning of $ 841 million a year by exporting more than 50 commercial products to US and Europe. India’s export of coconut products amount to about Rs 44,742 million. -------------------------------- Ambitious plan to raise wheat output by 5-7mt http://www.financialexpress.com/fe_full_story.php?content_id=140446 ASHOK B SHARMA ECONOMY BUREAU Posted online : Friday, September 15, 2006 at 0000 hours IST NEW DELHI, SEPT 14: The agriculture ministry will launch a programme for raising wheat productivity by five-seven million tonne from the ensuing rabi (winter) season begining October. The plan would address both short and medium term measures for increasing wheat productivity. Attempts would be made in non-traditional wheat growing areas like West Bengal. The state governments would be given incentives in the form of seeds and outher inputs. Plans are also drawn up to increase the productivity of pulses. Inaugurating the national

conference for rabi campaign here on Thursday, agriculture secretary Radha Singh said, “There should be a threshold level under which the production of wheat should not be allowed to go down.” She said that temperamental weather conditions had created concern among the farming community and state governments have put in contingency plans for alternate crops. Under the diversification programme, about two to three million hectare have gone out of rice cultivation for crops like pulses, oilseeds and cotton and the reduction in area could be matched only by high productivity. Wheat cultivation occupies 26.5 million hectare area and the production stands around 68-70 million tonne in recent years, she said. The major reasons for low productivity of wheat include delayed planting in the rice-wheat system, low seed replacement rate and low and imbalanced use of fertilizers, high cost

of inputs and depleting soil health. She emphasised the need for using quality seed for stepping up production and urged the state governments to give more thrust to seed production and distribution to farmers through the existing seed producing agencies. The government had recently constituted a National Rainfed Area Authority (NRAA) to address the problem faced by farmers in rainfed areas in a holistic manner under the chairmanship of agriculture minister Sharad Pawar. The authority would bring about convergence and synergy among the numerous ongoing programmes and will advise, guide and monitor their implementation as it encompasses all aspects of sustainable development of rainfed areas including appropriate farming and livelihood system approaches, she said. The authority with a two-tier system of representation of central and state governments as well as

expert group would also set research agenda for segments particularly important for rainfed areas and disseminate knowledge to districts and rural authorities. The agriculture secretary called upon the state governments to make available timely credit to farming community. The disbursement of agriculture credit has been increased to about Rs 1,87,000 crore and banks should be persuaded to disburse farm credit at appropriate time. The Government has finalized a package for the revival of short-term rural cooperative structure for providing financial assistance to the farm sector. She urged the state governments to take initiative for setting of Terminal Markets at important locations to provide competitive alternate marketing structure providing multiple choices to farmers for sale of their produce, she said. the terminal markets are to function in a Hub-and-Spoke Format wherein the Terminal Market would be

linked to a number of collection centres conveniently located to allow easy access to farmers for the marketing of their produce. She urged state governments to project the needs of agriculture sector prominently in the 11th Plan to get due share for irrigation and other areas concerning agriculture. The central government has prepared a scheme for the overall development of the farm sector which was presented to the Prime Minister in a presentation recently, she added.---

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