On GMOs + Monsanto Faces Loss + US & Indian Commodity Futures + Wheat Import

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In This NEWS Bulletin ******************************* 1. Supreme Court Allows GM Mustard Field Trials, But Says Ban Order On Further GM Crop Field Trial Remains 2. GM Rice Commercialisation Will Make Trade More Complex, Says Experts at 2nd IRC-2006 3. Monsanto Q4 Loss Widens, Stock Fall On 2007 Forecast 4. US Agency And FMC Launch Futures Market Programme In India 5. No More Wheat Import From April : Pawar ------------------------------ Delhi University to conduct field trials of transgenic mustard http://www.financialexpress.com/fe_full_story.php?content_id=143353 ASHOK B SHARMA Posted online: Saturday, October 14,

2006 at 0000 hours IST NEW DELHI, OCT 13: The Supreme Court on Friday allowed Delhi University to conduct limited field trials of its transgenic mustard crop. Making field trials of transgenic mustard an exceptional case, the apex court said its previous month’s interim verdict of not allowing further field trials of genetically modified (GM) crops till further orders, still holds good. The bench consisting of chief justice YK Sabharwal, justice CK Thakkar and justice Altamesh Kabir took up the writ petition filed by Aruna Rodrigues and others, seeking a moratorium on GM crops. It also deliberated on an appeal by Delhi University, which said if field trials of GM mustard crops were not allowed in the current season, they would have to wait until next year, as mustard crop can only be grown in winter. The apex court bench, thus,

making an exception, allowed field trials of GM mustard in an area of 200 sq metre, subject to implementation of biosafety protocols. Speaking to FE, the counsel for Rodrigues and others, Prashant Bhushan said, “We had suggested to the government to co-opt five independent experts in the Genetic Engineering Approval Committee (GEAC), which includes the founder-director of the Centre for Cellular and Molecular Biology and vice chairman of National Knowledge Commission, Pushpa M Bhargava and noted civil rights activist, Vandana Shiva. When the counsel for the government objected, the court asked him to file a written objection and suggest names of other independent experts.” Bhushan further said, “I raised objection to CD Mayee continuing as GEAC co-chairperson as he is on the board of the ISAAA, a US-based body funded by multinational biotech companies for propogation of transgenic technology. I

also raised objection to the breeder of GM mustard, Deepak Pental continuing as chairman of the GEAC sub-committe”. He said the court recognised this “conflict of interests” and asked the government to enquire if any other GEAC members were directly or indirectly funded by biotech companies.-------- GM rice likely to make trade more complex Experts in IRC see challenge in assessing implication of trade on food security http://www.financialexpress.com/fe_full_story.php?content_143180 ASHOK B SHARMA ECONOMY BUREAU Posted online: Thursday, October 12, 2006 at 0000 hours IST NEW DELHI, OCT 11: The rice market in the

near future would be complex due to the proposed commercialisation of genetically-modified (GM) rice, trade experts at the 2nd International Rice Congress (IRC-2006) cautioned. The issue would be linked with food safety and certification. During the discussions in the session on market intelligence and international trade, experts also said that the challenge would be to assess implication of future rice market and trade on food security, International Food Policy Research Institute (IFPRI)’s Asia director, Ashok Gulati said while briefing mediapersons on Wednesday. Food and Agriculture Organisation (FAO)’s director, Prabhu Pingali said, “In future rice will become an inferior commodity in Asia, but its importance will grow in Africa. Per capita rice consumption in most Asian economies is declining due to rising incomes and rapid urbanisation. At the same time, global trade in rice is growing at a faster rate

than other major cereals, such as wheat and corn. Global trade in rice increased from 4% to 7% of total production during 1992-2004. Rising production has led to decline in real prices for the crop, which has helped to sustain household food security. Evidence shows countries move away from taxing rice to subsidising it as domestic income levels increase.” Gulati blamed the subsidy regime for the fall in global rice prices. In the session on breeding rice for resistance to biotic stress, experts said through marker-assisted selection useful genes resistance to bacterial blight, blast and gall midge have been pyramided. The newly pyramided rice lines show broad spectrum of resistance to these pests. The rice varieties and hybrids so developed in the process were, however, not genetically modified ones as no transgene from other crops were involved. Denying ISAAA report of

commercialisation of GM rice in Iran, DS Brar of International Rice Research Institure (IRRI) said, “We have so far received no confirm reports on this issue.” In the session on nutrient use efficiency, experts suggested the site-specific nutrient management (SSNM) approach which would enable farmers to optimally nourish their crops and increase productivity and production. The SSNM approach would also help restore soil health aggravated by umbalanced use of different chemical fertilisers. On seeds production, experts said that on a global scale the price of seeds were higher than price of grains. However, in Indian context the seed prices in general are not a cause for concern. Certification for quality seeds has gain importance. More than 80% of hybrid rice seed are being produced in Kareem Nagar and Warangal districts in Andhra Pradesh.-- Monsanto Q4 loss

widens; stock falls on 2007 forecast http://www.financialexpress.com/fe_full_story.php?content_id=143154 Posted online: Thursday, October 12, 2006 at 0000 hours IST OCT 11: Monsanto Co., the world’s biggest developer of genetically modified seeds, said its fourth-quarter loss widened because of a shift in sales to earlier in the year. The company’s 2007 profit forecast was below analyst estimates, sending the stock down as much as 6.9%. The net loss in the quarter ended August 31 widened to $144 million, or 27 cents a share, from $125 million, or 23 cents, a year earlier, St. Louis-based Monsanto said today in a statement. Per-share profit in fiscal 2007 will be $1.50 to $1.57, the company said. Analysts

forecast $1.62. Seed revenue, including fees from genetics licensed to rivals such as DuPont Co., fell 2.4 percent to $532 million, Monsanto said. Those segment results lagged behind some analysts’ projections, JP Morgan Securities Inc. said in a report. Monsanto shares tumbled $3.02, or 6.5%, to $43.39 at 9:40 a.m. in New York Stock Exchange composite trading after touching $43.21. Before Wednesday, they had gained 63% in the past year. —Bloomberg ----------------------------- FMC, US agency launches futures market programme http://WWW.financialexpress.com/fe_full_story.php?content_id=143401 ASHOK B SHARMAECONOMY BUREAU Posted online: Saturday, October 14, 2006 at 0016 hours IST

NEW DELHI, OCT 13: The US has decided to help India in streamlining the commodity futures market and making its operations more transparent. This programme would be under the US-India Knowledge Initiative in Agricultural Research and Education. The US Agency for International Development (USAID) and regulator of futures market in India, the Forward Markets Commission (FMC), launched a Rs 4.5-crore ($1 million) commodity futures market programme on Friday in the capital. Speaking on the occasion, US Agency for International Development’s India mission deputy director Beth Hogan said, “Drawing on our experience, the US wants to help India improve futures markets support and the country’s 120 million farming households. An effective commodity futures market here can help farmers to guide planting decisions and manage the risks of market fluctuations.” The secretary in the department of consumer affiars, Labadenyu Mansingh and Forward Markets Commission chairman, S Sundareshan also attended the launch.TEAM UP TEAM UP• The Rs 4.5-cr commodity futures market programme is part of US-India Knowledge Initiative in Agricultural Research and Education• FMC to lead work on regulatory issues for the market place• US Agency for International Dvelopment support to be used for technical assistance from Financial Markets International Inc and the US Commodity Futures Trading Commission According to Hogan, the programme will promote vibrant and safe commodity futures markets by making the farm products market more transparent and available to the country’s farmers. The programme represents a practical benefit from co-operation between the US and India under the joint agricultural knowledge initiative launched by US President Bush and Indian Prime Minister Manmohan Singh in July 2005 and subsequently signed in March 2006 during Bush’s visit to India. Forward Markets Commission will lead the work on regulatory issues for the market place. US Agency for International Development support will be used for technical assistance from Financial Markets International Inc and the US Commodity Futures Trading Commission.- No more wheat imports from April: Pawar http://www.financialexpress.com/fe_full_story.php?content_id=143400 ASHOK B SHARMA ECONOMY BUREAU Posted online: Saturday, October 14, 2006 at 0014 hours IST NEW DELHI, OCT 13: The Union

agriculture minister Sharad Pawar said that the country may not need to import wheat in the coming fiscal year beginning April 1, 2007. In the present year 3.5 million tonne wheat have been contracted for imports on the government’s account against zero duty and relaxed quarantine norms. This has been done not due to shortfall in production but to maintain buffer stocks. The government has also allowed food companies to import another 3 million tonne wheat against zero duty by December 31, 2006. Pawar who was speaking to mediapersons on the sideline of the World Standards Day celebration on Friday organised by the Bureau of Indian Standards, said, “We have already drawn up an action plan for increasing the production of wheat.” Meanwhile, addressing the members of the Parliamentary Consultative Committee attached to his ministry, Pawar said his ministry has

formulated an action plan for increasing the production and productivity of wheat in the country. This is being proposed by targeting about 50% of the area under wheat for enhancing productivity and identifying about 138 districts in the states of Bihar, Uttar Pradesh, Madhya Pradesh, Maharashtra, Rajasthan, Gujarat, Punjab, Haryana and West Bengal. The interventions proposed in the action plan, include demonstration of improved package of practices of wheat, increasing the seed replacement rate to 33% from the present 13%, promotion of macronutrient and gypsum application, popularisation of machines, sprinklers, and subsidising diesel used for irrigation. The production of wheat, which has been around 70 million tonne during the last few years, could be increased by bringing an additional area of 1.4 million hectares in Rajasthan, Uttar Pradesh, Madhya Pradesh, Gujarat, Maharashtra and West Bengal under wheat

cultivation without displacing other crops like oilseeds and pulses. This would, however, require improvement in irrigation facilities and rejuvenation of soil conditions. The estimated cost of the proposed action plan for increasing wheat production would be Rs 841 crore over a period of three years, the minister added. The agriculture minister expressed concern that wheat production is not meeting the increased demands as the requirement of wheat based on actual consumption is estimated to be 74.8 million tonne by 2011-12. If the buffer requirement, exports and 15 days’ availability in the market for consumption are taken into account, the requirement of wheat would further go up by another 11.1 million tonne taking the total demand of wheat to 85 million tonne in another five years. The action plan has also proposed use of terminal heat tolerant varieties of

wheat and cultivation of suitable varieties with higher yield potential in Punjab, Haryana and western UP; plantation of early maturing cotton varieties in cotton-wheat system and selection of improved wheat varieties for late sowing.------------------------------

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