Agri Export Zones + Price Rise + Sugar Export + Wheat Output + AARDO Summit + NRIs

[Guest guest]

In This NEWS Bulletin ********************************* 1. The central government is reluctant to invest in Agri Export Zones (AEZs) which promote integrated rural development. Rather it is more interested in setting up Special Economic Zones (SEZs) through which the corporates and multinational grab farmlands from farmers for a platter ! ----- READ---- State governments want Rs 271.54 crore (Rs 2715.40 million) for development of Agri Export Zones (AEZs) ALSO - 2. Prices of essential food commodities remain high 3. Trade and industry scale down govt’s wheat output estimate 4. Govt to discuss total lifting of sugar exports

ban 5. Pawar urges overseas Indians (NRIs) to invest in farm sector 6. AARDO Summit : ‘Employment generation in rural areas is essential’, says President APJ Abdul Kalam 7. Dhanuka to launch new Dhanuka Chaupal on Jan 13 --------------------------- States want Rs 271.54 crore for development of AEZs (Agri Export Zones) http://www.financialexpress.com/fe_full_story.php?content_id=151056 ASHOK B SHARMA Posted online : Monday, January 8, 2007 at 0000 hours IST NEW DELHI: Seven state governments have asked for Rs 271.54 crore (Rs 2715.40 million) central

assistance under the ASIDE scheme for development of seven agro export zones (AEZs). Maharashtra has sought Rs 51 crore (Rs 510 million) for setting up of vapour treatment, radiation processing unit, pack houses with scanner facility for spongy tissues and other services in Ratnagiri district for its mango AEZ. Kerala has sought Rs 27.25 crore (Rs 272.50 million) for land development and setting up of plant and machinery in Palakkad for its medicinal plant AEZ. Uttarakhand has asked for Rs 3.40 crore (Rs 34 million) for a common processing facility in Dehradun and a tissue culture lab in Gopeswar for its medicinal plant AEZ. Sikkim has sought Rs 3.65 crore (Rs 36.50 million) for its floriculture AEZ, Andhra Pradesh Rs 91.48 crore (Rs 914.80 million) for setting up common aseptic packaging unit, solid waste treatment unit, strengthening market

yards and other infrastructure development for its mango pulp and fresh vegetable AEZs in Chittoor district. West Bengal has sought Rs 36.36 crore (Rs 363.60 million) for infrastructure development around its AEZs for pineapples and potatoes. Uttar Pradesh has sought Rs 58.40 crore (Rs 584 million) for vapour heat treatment irradiation processing facilities for its two mango AEZs around Lucknow and Saharanpur. The nodal agency for AEZs, Agriculture and Processed Foods Export Development Authority (APEDA), judging the performance of these states, has pleaded for assistance under Assistance to States for Infrastructure Development for Exports (ASIDE). According to a peer review group appointed by the government, the performance of many of the 60 AEZs spread across 20 states have suffered as the central and state governments concerned could not fulfill their investment commitments and encourage private sector to

pour in adequate funds. Over the last six year, total investments in 60 AEZs totals to only Rs 811.18 crore (Rs 8111.80 million) against the required Rs 1717.95 crore (Rs 17179.50 million). What is unfortunate is very low investment in AEZs meant for premium products, like basmati rice, durum wheat and Darjeeling tea. Money Matters • M’rashtra has sought Rs 51 crore for its mango AEZ in Ratnagiri • Sikkim sought Rs 3.65 crore and AP asked for Rs 91.48 crore for their AEZs• Kamal Nath said he would initiate policy changes for greater investments in AEZs• The sole AEZ in Bihar, for litchi, vegetables and honey attracted high investment Despite this, many of the AEZs have performed well. In fact, the AEZs in aggregate could fulfill over 50% of their export targets. With nil investment in the medicinal plant AEZ in Uttarakhand, reported exports were around Rs 1 crore (Rs 10 million).

Similarly, with a meagre investment of Rs 0.14 crore (Rs 1.4 million), the gerkins AEZ in Andhra Pradesh recorded Rs 44.52 crore (Rs 445.20 million) of exports, and with Rs 14.14 crore (Rs 141.40 million) investment, exports by the walnut AEZ in J & K stood at Rs 313.30 crore (Rs 3133 million). It may be recalled that commerce minister, Kamal Nath, had recently said he would initiate policy changes for effecting greater investments in AEZs. But there seem to be some inconsistencies in the report on AEZs available with the government. According to the report, there was nil export of Darjeeling tea from West Bengal and basmati rice from Uttarakhand and Uttar Pradesh in the last six years, whereas exports of these two premium commodities had taken place. "There is a lot of under-reporting of export figures, while the investment figures have been well reported," said a senior official in the commerce ministry.

Investments in some AEZs – pineapple AEZ in west Bengal, gerkins AEZ in Karnataka, vegetable AEZ in Punjab, grapes and grapewine and Alphonso mango, flower and onion AEZs in Maharashtra attracted investments higher than estimated. The sole AEZ in Bihar, meant for litchi, vegetables and honey also attracted higher investment. Investments in Uttarakhand’s flower AEZ, Punjab’s potato AEZ, MP’s potato and onion AEZ and Dharampuri AEZ in Tamil Nadu for flowers were marginally lower than estimated. -- Prices of essential food commodities remain high http://www.financialexpress.com/fe_full_story.php?content_id=151279 ASHOK B SHARMA Posted online :

Wednesday, January 10, 2007 at 0000 hours IST NEW DELHI, JAN 9 : The retail prices of 14 essential food commodities still remain at a high level at the beginning of the year 2007. According to the recent data available with the Union ministry for food and consumer affairs, Delhi is still reeling under the pressure of high prices. The retail prices of 14 essential food commodities are almost the same as that in the previous week ended on December 28, 2006. The retail prices reached a peak in the festive occasion of Divali in the previous year. The prices remained at a high level following Christmas, New Year and the marriage season. The retail price of rice has increased by Re one per kg to be at Rs 15 per kg. Similarly the retail price of onion has increased from Rs 11 a kg to Rs 12 per kg. Only food commodity to register a fall in prices is gram.

The retail price of gram in Delhi fell by Re one to be at Rs 37 a kg. The fall in retail prices of gram is due to the farm marketing agency, Nafed offloading 35,168 tonne imported black gram (urad) and 12,893 tonne imported green gram (moong) in the domestic market. This comprises 97% of the total 49,300 tonne gram contracted for import by Nafed in the year 2006-07. Meanwhile, the Union finance minister, P Chidambaram while addressing the AGM of the Federation of Indian Chambers of Commerce & Industry (FICCI) on Tuesday in Delhi expressed concerns of the rising trend in prices and blamed a section of the industry for deliberately skyrocketing prices. A parliamentary standing committee, earlier in its report had held large-scale hoarding and manipulations in the futures market responsible for the rise in prices. It had suggested a ban in futures trading in agro commodities.

--- Trade and industry scale down govt’s wheat output estimate http://www.financialexpress.com/fe_full_story.php?content_id=151133 ASHOK B SHARMA COMMODITIES BUREAU Posted online : Tuesday, January 9, 2007 at 0000 hours IST NEW DELHI, JAN 8: Trade and industry are not optimistic about the government’s projection of wheat output in the current season at 74 million tonne. According to them wheat output would be 72.8 million tonne. Output of chickpea has been projected at 5.5 million tonne and mustard at 5.85 million tonne. The one-day conference of industry and trade

on the prospects of the rabi (winter) crops which concluded on Sunday in Delhi, finalised estimates of output of various crops in the season. Despite lowering the wheat production estimate, trade and industry were largely of the view that the country need not import wheat this year, if the government takes adequate steps to purchase enough wheat from farmers for maintaining its buffer stock. India may need to import about 1,00,000 chickpea. The demand for chickpea is likely to decline to 5,00,000 due ruling high prices, the trade and industry said. Lower output of chickpea is due to the setback in Andhra Pradesh, while the lower production of mustard is due to diversion of the area to wheat cultivation in Rajasthan. A leading farm journal, Agriwatch with the support of the multi commodity exchange, MCX, finance agency, ICICI Direct, NIAM, Agriculture and Processed Food Export Development Authority (APEDA),

Adani Enterprise, Shakti Bhog, Zee Business, Business Line and Trade Associations organised the conference. In the previous year, farmers’ organizations had estimated a wheat output of around 73 million tonne and the government’s initial estimate tallied with this figure. Later the government scaled down its estimate to 69.4 million tonne to justify its import of 5.5 million tonne wheat and facilitating food companies to import dutyfree wheat against relaxed quarantine norms. This decision of the government has been challenged in the Supreme Court. Another excuse given the government was that it could not purchase wheat from farmers for its buffer stock as the domestic prices were ruling high. The prices were ruling high due to hoarding and manipulations in the futures market. Farmers had then opposed government’s import policy and had said that wheat output was enough to meet

the country’s total consumption need estimated at 60 million tonne. Meanwhile, the area coverage under wheat in the current rabi (winter) season, till date has risen by 7% to be at 27.552 million hectare as compared to 25.787 million hectare in the like period last year. The total area coverage under wheat in the previous year was only at 26.647 million hectare.-------------------------------- Govt to discuss total lifting of sugar exports ban http://www.financialexpress.com/fe_full_story.php?content_id=151314 ASHOK B SHARMA Posted online : Thursday, January 11, 2007 at 0000 hours IST NEW DELHI, JAN 10 : The Cabinet Committee on Prices (CCP) in its next meeting, is slated to

deliberate on the issue of totally lifting the ban on sugar exports. • The government imposed a ban on sugar exports on July four last year• It was lifted partially on December 18, 2006 for select mills• The sugar industry had been lobbying to squash the ban The government had imposed a ban on sugar exports on July 4 last year, in response to rising prices in the domestic market caused due to hoarding and manipulations in the futures market. The ban was lifted partially on December 18, 2006, allowing exports only to those mills, which had export obligations against imports of raw sugar under a specific scheme of the government. The sugar industry had been lobbying with the government for totally lifting the export ban. Recently, the ministry for food and consumer affairs, on January 4 moved a note to the CCP for the total lifting of the export ban.

The ministry, in its note, has suggested that lifting of sugar exports under the open general licence (OGL) scheme, subject to the ministry’s periodic release orders. It has argued that the sugar prices in the domestic market has softened to Rs 19 per kg hence, there is no such concern on the price front. It may be noted, in context, that at time the ban was imposed prices were ruling at around Rs 22 per kg. The note suggested possibility of export of about 1.6 million tonne sugar to Bangladesh, Sri Lanka, Pakistan, Indonesia, West Asian counties and African countries like Somalia when the global prices are ruling around $ 350 a tonne. The export earnings would give leverage to the mills to clear off their dues payable to farmers. The ministry has also pleaded that the sugar output in the current year is likely at 22.7 million tonne and with a carryover stock of 4 million tonne from the previous year, the present

year would end with a surplus of over 3 million tonne after meeting the domestic consumption need of 19 million tonne. The industry has projected an output of 24 million tonne sugar in the current year. Since the cane crushing began in October, 2006, the sugar output till December, 2006 was 7.45 million tonne against the target of 7.38 million tonne. Thus it seems the target production for the year can be achieved in time, the note said and added that futures prices are being quoted low on account of projected good production.----------------------------- Pawar urges NRIs to invest in farm sector http://www.financialexpress.com/fe_full_story.php?content_id=151130 ASHOK B SHARMA COMMODITIES BUREAU Posted online : Tuesday,

January 9, 2007 at 0000 hours IST NEW DELHI, JAN 8: Union agriculture minister, Sharad Pawar on Monday came out strongly in favour of public-private partnerships in various areas of agriculture for achieving 4% growth in the farm sector. Addressing the conclave of foreign citizens of Indian origin in Delhi on Monday on the occasion of the Pravasiya Bharatiya Diwas, Pawar said that such partnerships were contemplated in agriculture marketing, food processing, value addition, water conservation, seeds, e-agriculture and extension. Stating that the state governments and the non-resident Indians (NRIs) needed to be important partners in this endeavour, he expressed confidence that the coming years would witness a major change and a much larger investment would flow to agriculture and allied activities. The minister informed that encouraging

public-private partnerships was a component of the strategy being adopted by the government to enhance production and productivity. In the field of agri-business, especially the creation of agri-marketing infrastructure, there is tremendous opportunity for the private sector. Promotion of direct marketing, contract farming and development of agricultural markets have been identified as key areas of reforms. A large number of state governments have amended their Agricultural Produce Marketing Committee (APMC) Acts for deregulation of agricultural marketing, thus providing more options for farmers for selling their produce. The government is supporting ventures for developing infrastructure such as cold storages and terminal markets, by way of equity participation. The private sector, especially NRIs, can play an important role in these ventures, he said. Pawar further stated that

the private sector and NRIs could contribute immensely in production of quality seeds and promotion of micro-irrigation systems. Contract farming and agriculture online too have immense potential for public private partnership throughout the country. Organic farming is an area where India has comparative advantage and hilly and rainfed areas with low and no use of agro-chemicals can be instantly converted to organic farming. Similarly biofuels (fuels derived from plant-based resources) assume importance and there is need to develop a roadmap for use in petrol and diesel engines in a time bound manner. In the area of research and extension also, there is the need to jointly evolve innovative models for public private partnership with substantial role of NRIs, the minister said. Pawar emphasized that the professional expertise, business acumen and investment capability of more

than 20 million people of Indian origin in different countries needed to be utilized in India’s growth strategy. AARDO Summit : ‘Employment generation in rural areas is essential’, says President APJ Abdul Kalam http://www.financialexpress.com/fe_full_story.php?content_id=151527 ASHOK B SHARMA COMMODITIES BUREAU Posted online: Saturday, January 13, 2007 at 0000 hours IST NEW DELHI, JAN 12: President APJ Abdul Kalam has said that employment generation, particularly in rural areas, is very essential for increasing the growth rate from the current 8% to 10% and maintaining it for a decade. He said this was important for uplifting the

220-million people living below the poverty level in the country. He said that the benefits from health and education would be “washed away” if there were no employment opportunities The President while inaugurating the Inter-Ministerial Summit of the Afro-Asian Rural Development Organisation (AARDO) here on Friday said that development processes like education and health care should follow employment generation for sustainable development. Kalam dwelled upon on the PURA (Providing Urban amenities in Rural Areas) programme and said entire country should have 7000 PURAs encompassing over 6 lakh villages. He said apart from concentrating on reinforcing agriculture, PURA would emphasise on Agro processing, developing of rural craftsmanship, dairying, fishing, silk production so that non-farm revenue for the rural sector is enhanced. He said that rural economy would be driven by

renewable energy sources and this way the aim is to provide sustainable development using the core competence of the rural sector. He called upon the participants of the summit to study the applicability of PURA to their respective nations keeping in view their needs and core competence. The summit adopted the Delhi Declaration resolving to fight against all forms of poverty. The Union minister for rural development, Raghuvansh Prasad Singh, addressing the inaugural session expressed hope that the deliberations at the summit will help in formulating an action plan to guide member countries in rural development programmes in the era of globalisation and a new world scenario. He complemented AARDO in its pioneer efforts for ensuring South-South cooperation in rural development in the Afro-Asian region. The Minister apprised the participants of the Summit about the various

rural development programmes currently on in India. The Secretary General of AARDO, Abdalla Yahia Adam said that multi disciplinary approach for the development of agrarian economies since early 1970s has been having encouraging results in many countries despite the economic, social and natural constraints. He said the strategy for economic growth through industrialization and “trickle down effect” have failed to have substantial impact on socio-economic development of most of the third world countries. Adam referred to the World Development Report of 2000-01 in this regard and said that according to it in 1960 per capita income in richest 20 countries was 18 times that of the poorest 20 countries. By 1995 this gap widened to 37 times, he added. Referring to the free trade as a strategy for development, Adam said that market access

is still limited for the developing countries especially for commodities over which they have comparative advantage. - Dhanuka to launch new Dhanuka Chaupal on Jan 13 Commodities BureauNew Delhi, Jan 12 The Rs 300 crore Dhanuka group is slated to launch a high tech “Dhanuka Chaupal” on January 13 in Gurgaon in Haryana – a township close to Delhi. Haryana chief minister, Bhupender Singh Hooda will inaugurate the chaupal on the festive occasion – Lohri usually celebrated with joy in north and northwest India. The chairman of the Dhanuka group, RG Agarwal said : “In the proposed chaupal there would be periodic training for farmers, soil and water testing facilities. People managing the chaupal would also make frequent visits to farmers’ fields.” He said that on the occasion of Dhanuka Choupal in Gurgaon, a toll free phone

number 18001805000 for farmers helpline will be launched. Dhanuka group will soon launch 6 “Agri Malls” - two each in northern and western India and one each in eastern and southern India, wherein all the farmers related facilities and in-puts will be available, he said. Agarwal, said that Dhanuka group is actively working with Madhya Pradesh government for extension service to farmers. The MP government has handed over its fully equipped soil testing laboratory to Dhanuka.. Dhanuka group’s extension service in Hoshangabad district made it possible for the district to get “National Productivity Award” in 2004. Dhanuka is in collaboration with Rajendra Agricultural University, Pusa, Bihar and Litchi Growers Association for upliftment of farmers. Dhanuka group is a conglomerate with a turnover of Rs 300 cr. and strong presence in India in pesticides, seeds, fertilizers and bulk drugs.

---- Send free SMS to your Friends on Mobile from your Messenger. Download Now! http://messenger./download.php