On GMOs & Trade + WTO & South Asia + TSUNAMI Centre + Agri Budget 2007

[Guest guest]

In This NEWS Bulletin ******************************* On GMOs & Trade - 1. DBT contemplates changes to GM crop field trial regulations 2 India’s TSUNAMI warning system to be best in world On WTO & Trade Issues - 3. Non-tariff barriers will hit South Asia’s agri exports - Centad-OXFAM Study 4. Nath weighing policy changes to prop up agri export zones - In response to Dec 18, 2006 news report in FE 5. Agri ministers against ban on farm exports 6. RUN-UP TO BUGDET 2007-08 - Agri experts meet Chidambaram, seek good deal for small farmers -- GMOs & Trade Concerns : DBT

contemplates changes to GM crop field trial regulations http://www.financialexpress.com/fe_full_story.php?content_id=150084 ASHOK B SHARMA Posted online: Thursday, December 28, 2006 at 0000 hours IST NEW DELHI, DEC 27: Faced with the problem of maintaining the country’s image as an exporter of GM-free rice, the department of biotechnology (DBT) is now contemplating changes in its guidelines for regulation of field trials for genetically modified (GM) crops. DBT secretary, MK Bhan , DBT advisor KK Tripathi and advisor in the science and technology ministry, SR Rao have suggested that no field trials of GM rice should be allowed in Basmati rice producing states—Haryana, Uttar Pradesh and Punjab. India has a competitive advantage in the export of its premium aromatic rice—Basmati—worth in millions of dollars. The recent contamination of US and Chinese rice with GM traces and the consequent refusal of the contaminated shipments by major importing countries sent shock waves across the global trade. The US rice industry incurred a loss in millions of dollars and suggested “a clean up exercise” to the US administration. With the uprooting and burning of GM rice crops under field trials by farmers in the country and NGOs reporting cases of violation of biosafety norms, Indian rice exporters woke up to the reality and began asking for strict implementation of biosafety norms to prevent any possible contamination of exportable rice with GM traces. The exporters even went to the extent of filing an impleadment application in the on-going writ petition filed by Aruna Rodrigues and others in the Supreme

Court. Aruna Rodrigues and others have urged for a moratorium on GM crops. The DBT, in this context, called for a consultation with major stakeholders last week to trash out the issue. In the consultation it was decided that the directorate of agriculture and agriculture universities in the states concerned would be informed about the permission for field trials of GM crops. The village panchayats would also be informed about the field trials. The letter of permission should specifically say “confined trial” and not “contained trial.” It was also decided that all information about the field would be shared with the public through relevant websites. DBT would take steps to educate farmers and other stakeholders on biotechnology and GM crops using the services of BCIL and AgBios. The consultation meeting was presided over by MS Swaminathan who recently headed a panel

of experts which suggested creation of an independent biotechnology authority. The Swanimathan panel also suggested conducting GM crop trials in areas away from the areas reseved for organic farming. The panel also suggested proper selection of crops for developing its transgenic versions, keeping in view its export potentials. ------- India’s Tsunami warning system to be best in world http://www.financialexpress.com/fe_full_story.php?content_id=150065 ASHOK B SHARMA COMMODITIES BUREAU Posted online: Thursday, December 28, 2006 at 0000 hours IST NEW DELHI, DEC 27: India’s tsunami warning system, to be in operation from

September 2007, will issue alerts about the killer tidal waves within 20 minutes of any disturbances occuring below the seabed. About 10 minutes will be needed to record, process and analyse data and another 10 minutes for dissemination of the alert . Tsumani is caused due to earthquakes, landslides or volcanic eruptions below or at the seabed.The Union minister for earth sciences Kapil Sibal claimed the Rs 125 crore Tsunami warning system would be the best in the world. After issuance of an initial alert, it would be followed by a better forecast. Briefing mediapersons in Delhi on the second anniversary of the tsunami that killed an estimated 250,000 people in a dozencountries in south and south-east Asia, he said, “We will keep our promise of giving the country a world class tsunami warning system by September 2007.” He said that unlike the other Tsunami warming systems which

have a record of issuing 60% false warnings. Sibal said the Indian system would issue a warning after analysing data from the bottom pressure recorders- such devices are being installed in the Bay of Bengal region and the Arabian Sea.Automatic tide gauges have also been installed in the Bay of Bengal and Indian Ocean that would enable monitoring of tidal activity round-the-clock, he said. The earth science ministry has also roped in Indian space research organisation (ISRO) for setting up of satellite-based communication facility for receiving real time data from the tide gauges and the bottom pressure recorders. An interim early warning mechanism is already operational at the Indian National Centre for Information Services, Hyderabad. As a part of strengthening seismic network for near real time monitoring of potential Tsunamigenic earthquakes, 17

inter-connected broadband seismic stations will be set up and for real time communication of data to the Central Receiving Station (CRS) of India Meteorological Department, Delhi and to the Parallel CRS at INCOIS, Hyderabad. Five coastal observing radars and two current meter moorings are planned to be installed towards monitoring storm surges and understanding physical behavior of oceans. One high frequency radar has been successfully used to detect and measure the strength of advancing waves. ------- Non-tariff barriers will hit South Asia’s agri exports http://www.financialexpress.com/fe_full_story.php?content_id=149963 ASHOK B SHARMA Posted online: Wednesday, December 27, 2006 at

0000 hours IST NEW DELHI, DEC 26: South Asian countries exporting agri products may not benefit much from the proposed tariff reduction in developed countries in accordance with the Doha Round of negotiations. The South Asian Yearbook 2006 of Trade and Development, complied by the Centre for Trade and Development (Centad), says, for most export products, tariffs are already low in major destination countries. Even if developed countries reduce tariff, the major concern will still remain—non-taiff measures like food standards and quality norms will continue to deter exports. For products in which South Asian countries are already competitive, increased market access will depend on their ability to compete with other efficient exporting countries. The yearbook says least developed countries will benefit from the proposed increased market access. But it also

said : “It remains to be seen whether South Asian LDCs can take advantage of this market opening.” As far as tariff reduction in south Asian nations is concerned, the yearbook has cautioned that it will lead to food security problems as “agriculture is not a commercial proposition in the region, but a means to secure livelihood”. No Silver Lining WHY TARIFF CUT WON’T BENEFIT MUCH• For most products, tariff rates are already low in major destination countries• Even if developed countries cut tariff, the major concern is non-tariff measuresWHAT ABOUT TARIFF CUT IN S ASIA• Tariff cut in south Asia will lead to largescale food security problems WHAT ASIA SHOULD DO• Indicator-based approach is essential;seek tariff cut exemption for special products The study suggested an indicator-based approach for selection of special products (SPs) and special safeguard mechanism and the south Asian

countries should seek tariff cut exemptions for all selected SPs. “Alternatively, the south Asian countries could also bargain for quantitative restrictions or counter-cyclical payments for an effective SP and SSM,” it points out. Regarding trade in textiles and clothings, the market is rapidly evoloving into a buyers” market due to the emergence of largescale retailers who tend to centralise sourcing strategy and spread the risk by sourcing from different countries. South Asian countries face high tariff barriers. The situation is further complicated by a multiplicity of discriminatory preferential trading arrangements, which work to the disadvantage of South Asian exporters. Besides there are other arbitrary trade protectionist measures in the form of non-tariff barriers. Even if market access is guaranteed, the supply response from most south Asian countries is limited due to low productivity, poor

infrastructure, low trade facilitation measures, high cost of inputs and limited access to finance.---- Nath weighing policy changes to prop up agri export zones http://www.financialexpress.com/fe_full_story.php?content_id=149962 ECONOMY BUREAU Posted online: Wednesday, December 27, 2006 at 0000 hours IST NEW DELHI, DEC 26: Concerned over the failure of both the state and central governments in making adequate investment for the 6-year-old agri export zone (AEZ) scheme, the commerce ministry is contemplating changes in the policy to boost the prospects of farm exports. Since the introduction of the scheme in 2001, the number of AEZs has totalled to 60, spreading across

20 states in the country. Initially an investment of Rs 1,717.95 crore was earmarked, but the actual flow of investment to AEZs to date remains as low at Rs 811.18 crore. Not just this, the state and the central government agencies are not fulfilling their investment targets, they have not encouraged the private sector to make adequate investments. Despite low investments, the AEZs could meet over 50% of their export target. “AEZs have to be transformed and we will bring in necessary policy changes to facilitate it so that it can get a boost,” commerce and industry minister Kamal Nath said here on Tuesday. “With 650 million people engaged in agriculture that contributes just 23% of GDP, there is a need to focus on identifying areas for increasing the agricultural exports so that farmers also engage in the global trade and become globally competitive. We have to evolve a strategy

to promote processed foods”, he said after giving away exports awards at a function organised by federation of Indian export organisations (FIEO). • Since 2001, number of AEZs has totalled 60, spreading across 20 states• Investment of Rs 1,717.95 cr was earmarked, but actual flow remains at Rs 811.18 cr• Despite low investments, the AEZs could meet over 50% of their export target AEZs were formulated in correspondence with the agro-climatic regions and are spread over a district. The government, using the AEZ policy, gives support for the development of needed infrastructure like storage, transport and processingfacilities. FE on December 18 had reported about the low investments made in AEZs.Nath admitted that poor infrastructure continued to be an obstacle for an agri export strategy. Noting that exports were crucial for an

ambitious 10% economic growth, he said this year services’ and goods’ exports would have grow to $225-250 billion. Nath also asked FIEO to undertake a study on how to boost agricultural exports in the next five years. The minister has urged the exporters to look at relatively new markets like Africa, CIS countries and the Pacific Caribbean areas. The minister gave away the FIEO Export Awards, Niryat Shree and Niryat Bandhu for the 2003-04 and 2004-05. Niryat Shree were awarded to exporters for achieving outstanding export performance while Niryat Bandhu were awarded to export promotion agencies for providing valuable support to the exporting community.-------------------------------- Agri ministers against ban on farm exports http://www.financialexpress.com/fe_full_story.php?content_id=150085 ASHOK B SHARMA COMMODITIES BUREAU Posted online: Thursday, December 28, 2006 at 0000 hours IST NEW DELHI, DEC 27 : The agriculture ministers from different states have urged the central government not to ban farm exports in the interest of farmers. They also called for imposition of a differential rate of import duty which would protect the farmers from making losses in case the prices of oilseeds and pulses crash in the market. The meeting of the state agriculture ministers also favoured the need for minimising the share of the middlemen in agricultural marketing. The meeting of the state agriculture ministers was convened last week to deliberate on the recommendations of the National Commission on Farmers (NCF).

The meeting was presided over by the NCF chairman, MS Swaminathan. The state agriculture ministers called for clearing of river beds through dredging to facilitate free flow of water and to control floods. Coastal shelter belt plantation should be intensified to reduce the impact of cyclones. They also called for reorienting agriculture research to address the problems of small and marginal farmers. Crop mapping should be done once in ten years by the central government. There is a need for setting up of a Feed & Fodder Corporation for increasing the production of fodder to meet the increasing needs of the livestock sector and to improve milk production, the meeting resolved. Further suitable agricultural implements for use by small farmers should be developed with the help of premier institutes. Minimum Support

Prices (MSPs) for livestock products like milk, meat and eggs also need to be fixed, the state farm ministers demanded and favoured a zone specific pricing structure for the determination of MSPs considering the limitations of productivity in different areas. They also said there should also be MSPs for horticulture products. The state farm ministers also suggested marketing reforms for livestock and horticulture products, formulation of an appropriate policy for electricity supply to farmers, inclusion of representatives of state governments in various policy making bodies for the farm sector, setting up of a mechanism to certify or regulate the quality of fish seed and fish feed. The meeting of the state agriculture ministers also resolved that vegetables and fruits need to be given priority by formulating special programmes for their development, commercialisation, linkage with value addition and marketing

both at micro and macro levels. However, some state governments did not favour agriculture being placed under the Concurrent List under the Constitution. At present states have the power to regulate agriculture and if agriculture is brought under the Concurrent List, both the Centre and the states would jointly regulate agriculture. The state farm ministers suggested that extension support services should also cover fisheries. Fishermen should also be provided accident insurance coverage and health insurance. Investment in agriculture needs to be increased substantially. There should be suitable insurance cover for farmers and their produces, action should be taken to check the diversion of agricultural land for non-agricultural use they said and called for a detailed policy for land use. The Union agriculture

minister, Sharad Pawar said that the Government would now proceed on the basis of broad agreement arrived in the meeting and take action to have a comprehensive approach regarding implementation of the Commission’s recommendations which would be placed before a special meeting of the National Development Council to be held during March 2007 on the Draft National Policy and other aspects of agricultural development and food security.--------- RUN-UP TO BUGDET 2007-08 Agri experts meet Chidambaram, seek good deal for small farmers http://www.financialexpress.com/fe_full_story.php?content_id=150294 ASHOK B SHARMA COMMODITIES BUREAU Posted

online: Saturday, December 30, 2006 at 0004 hours IST NEW DELHI, DEC 29: Agriculture experts on Friday urged the government to initiate policy measures to alleviate the sufferings of the farmers, particularly the small and marginal ones. They called for optimal use and conservation of natural resources and measures that can increase crop productivity. Finance minister P Chidambaram, who began his pre-Budget consultations with experts on Friday, was told that adequate policy needed to be formed in the forthcoming Budget, to contain the spate of farmers’ suicides. Ashok Gulati of the US-based International Food Policy and Research Institute suggested that the government should allocate enough resources for completion of the irrigation projects, particularly which are on the verge of completion. He estimated that a sum of Rs

30,000 crore would be needed to complete all irrigation projects under various stages of completion and, therefore, a single-year Budget cannot address the issue. He said that it would be better if the government concentrated, in the next fiscal year, on those projects that are on the verge of completion. Gulati suggested fixation of two types of prices for crops–one support-price based on actual costs and the other remunerative price for procurement by government- designated agencies. He suggested that grain procurement should be market-driven. He also said contract farming as a measure to boost farmers’ income. The pre-Budget consultation meeting was attended by 12 experts, including representatives from the plantation sector, senior government officials, bank representatives. No representatives from any recognised farmers' organisation in the country was, however, invited. Noted conservationist Rajinder Singh suggested community-driven decentralised water management. He said banks should extend cheap loans for digging wells and tube-wells. He alleged that the government has patronised water-intensive crops like wheat and rice. According to him, the government should also purchase grains like pulses, which require less water, for distribution under the public distribution system. Member of Parliament Sharad Joshi suggested that the crop loans should carry 4% interest rate as per the recommendations by the National Commission on Farmers. He said financially feasible exit route for farmers including selling farmland to developers of special economic zones should be provided. Other experts present, however, opposed convertion of farmlands into SEZs. Joshi also termed the Essential Commodities Act as an “archaic legislation” and sought its

removal. Other experts called for suitable weather insurance products, enlarging the scope of crop insurance, strengthening of extension services, encouraging drip and sprinkler irrigation, national programme on tissue culture and animal husbandry, financial incentives for water management, reclamation of waste and barren lands -- Send free SMS to your Friends on Mobile from your Messenger. Download Now! http://messenger./download.php