Global Project To Combat AVIAN FLU + 11th Plan & Agriculture

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In This NEWS Bulletin ******************************** 1. Global project worth $7.8 million to help ryots combat Avian flu RUN UP TO 11th PLAN 2. PM urges states to spend more on agri 3. For a four per cent farm growth - Poor agriculture growth causing rural distress, says Prime Minister Manmohan Singh - Offers incentives to states initiating urgent action to turn the sector around 4. ‘Large central aid for agri sector difficult’ : Finance Minister 5. Pawar calls for 2-mt-tonne sugar buffer stock 6. Montek favours selective waiver of agriculture loans ----------------------------- Global project worth $7.8 million to help ryots combat Avian flu http://www.financialexpress.com/fe_full_story.php?content_id=164079 ASHOK B SHARMA Posted online: Monday, May 14, 2007 at 0000 hours IST NEW DELHI, MAY 13: Global research agencies have planned to launch a $7.8-million project to help farmers in the developing world in the event of an outbreak of the Avian flu. The project is slated to be launched on Monday. Indian poultry industry had suffered heavy losses on account of the outbreak of Avian flu for the first time in 2005-06. The virus causing Avian Flu was unknown to India and experts say that it might have migrated probably

from neighbouring countries. The global project funded by the UK’s department for international development will initiate researches in Cambodia, Thailand and Vietnam, where the incidences of Avian flu usually take place. The research will be led by UN Food and Agriculture Organisation (FAO), the Royal Veterinary College and the University of California at Berkley. The apex global research body, Consultative Group on International Agricultural Research (CGIAR), will also be involved in the project. CGIAR’s affiliate organisations International Food Policy Research Institute (IFPRI) and International Livestock Research Institute (ILRI) are already jointly spearheading researches in Ethiopia, Indonesia, Kenya, Mali and Nigeria. These two institutions will jointly identify strategies like compensation to farmers for the losses incurred, control of the disease and protection of poor households from losing critical sources of income. IFPRI and ILRI have jointly planned to study the patterns and determinants of the spatial spread of the highly pathogenic Avian flu in several countries in Africa as well as in Indonesia. The study will also focus on the economic impact of not controlling the spread of Avian flu and cost-effective control options for different size of poultry industry. The goal of combined research activity of different involved agencies is to help national governments in making more informed decisions on how to control the spread of a trans-boundary animal disease while minimising the impact on different groups, particularly the poor. The project will develop an applied probabilistic simulation model to evaluate risks of spatial transmission of Avian flu virus from migratory birds, commercial trade in breeding stock, veterinary inputs and live animals. Risk analysis and tools in both epidemiology and economics will be used to study

the impact of the spread of Avian flu and various control measures.------ PM urges states to spend more on agri http://www.financialexpress.com/fe_full_story.php?content_id=164225 ASHOK B SHARMA Posted online : Tuesday, May 15, 2007 at 0000 hours IST NEW DELHI, MAY 14 : Cautioning states against low spending on agriculture, where dismal growth has resulted in “acute rural disaster”, Prime Minister Manmohan Singh on Monday promised incentives for doubling farm growth to 4% during the 11th Plan period. “Reversing the prolonged slowdown in agriculture and enhancing its growth to 4% a year is critical to the well-being not just of the

large population but also to ensuring equitable, inclusive growth,” he said while concluding a meeting of the full Planning Commission convened to devise strategies for bolstering the farm sector. Having warned states at the beginning of the meeting that poor agriculture growth (less than 2% now) was a cause for rural disaster, the Prime Minister wanted them to step up spends on the farm sector to at least 6% of their total outlay from the low level of 3.5% now. The Prime Minister wished to see tangible gains in 2-3 years but cautioned there was no easy solution to this. For a four per cent farm growth Poor agriculture growth causing rural distress, says Manmohan Offers incentives to states initiating urgent action to turn the sector around http://www.financialexpress.com/fe_full_story.php?content_id=164167 ASHOK B SHARMAPosted online : Tuesday, May 15, 2007 at 0000 hours IST NEW DELHI, MAY 14: Prime Minister Manmohan Singh on Monday said the Centre would offer incentives to states initiating urgent and effective action to turn around the agricultural sector and implement strategies to raise agricultural output. The farm sector has been growing at less than 2%, causing rural distress, he said. “I had directed the Planning Commission to work with the ministry of agriculture and come up with specific proposals to promote state-specific agricultural strategies and ways of incentivising states to adopt these,” Singh said, presiding over the full Planning Commission meeting convened to address

issues hindering growth and productivity in the farm sector. Agriculture being a state subject, it was important to evolve state-level strategies tailored to meet the specific needs of the agro-climatic conditions prevailing in each state, the Prime Minister said. These must take into account all inter-related actions needed to increase production and productivity, he added. The Prime Minister said whatever strategies chosen by states must deliver tangible benefits to farmers, consumers and the rural economy as a whole. “This is important to avert any crisis in the agrarian sector and fulfill the needs of a growing economy,” Singh said, adding, poverty, unemployment and regional disparities, were inter-related and could be addressed by stepping up agricultural output. The launch of the National Horticulture Mission, establishing the National

Rainfed Area Authority, the National Fisheries Development Board, and increasing the Plan allocation for agriculture are some of the initiatives taken by the government to deal with the problems. “However, these efforts need to be expanded into a broader strategy for agricultural revitalisation,” Singh said. “There are substantial yield gaps in all states, between yields actually achieved at the farm level, and the yields that are feasible, given the agro-climatic constraints and the existing technology. These potentials vary from 40% to 100%. Increased production in the next three-four years can only come from bridging this yield gap or expanding area,” Singh said. Given the limited scope for area expansion, Singh said the focus should be on yield gap reduction. Leading The Way PM SAYS...• It’s important to evolve state-level strategies to

meet specific needs of the climatic conditions • Whatever strategies chosen must deliver tangible benefits to farmers, consumers & rural economy• Poverty, unemployment and regional disparities could be addressed by stepping up agricultural output FM SAYS...• Large outlays for sectors which require substantial funds may not be channelised through ACA HOUSE PANEL SAYS...• Efforts should be made to give real benefits of subsidies to small and needy farmers In its presentation, the agriculture department said a committee of secretaries was studying a draft national policy for farmers, regarding which a broad consensus has emerged among states. The draft policy involves setting up of the Rainfed Area Authority with a budget of Rs 300 crore, bringing additional area under irrigation, launching of special wheat production programme with investment of Rs 841 crore and an action plan for

increasing the production of pulses. The meeting also discussed the reports of the National Development Council (NDC) sub-committee on agriculture to draw a strategy for achieving the targeted growth rate of 4% during the Eleventh Plan. The sector has clocked less than 2% growth between 1996 and 2004. It registered a paltry 1.8% growth in the 10th Plan against the target of 4%. The action plan of food security proposes to increase rice productivity from 1.5 tons per hectare to 2.5 tons per hectare in Assam, Bihar, Chhattisgarh, Orissa and eastern UP. ‘Large central aid for agri sector difficult’ http://www.financialexpress.com/fe_full_story.php?content_id=164168 ASHOK B SHARMA Posted online : Tuesday, May 15, 2007 at 0000 hours IST NEW DELHI, MAY 14 : Finance minister P Chidambaram on Monday said it might not be feasible to allocate large outlays as required by certain sectors through the Additional Central Assistance scheme for agriculture as proposed by the Planning Commission. “It is not clear what will be the size of the envelope that can be accommodated under the ACA method. I doubt whether large outlays for sectors which require substantial funds can be channelised through ACA,” he said at a full Planning Commission meeting held on Monday. Chidambaram pointed out that such outlays are normally routed through the finance commission or the Planning Commission, which are responsible to assess the overall resource

availability and inter-sectoral and inter-state allocations. Though the minister said that the ACA would be a desirable method for transfer of resources, its horizontal allocation across states must be driven by a transparent formula. He added that the size of agricultural GDP and the potential yield gap could be the parameters, but it is crucial to discuss the formula/variables with stakeholders and provide simulations for the benefit of states. Referring to ‘Plan B’ of the Budget, Chidambarm urged the Planning Commission to allocate bulk of the resources to agriculture and allied activities. “If we can find additional resources to the extent indicated, I would urge the Planning Commission to allocate the bulk of these resources to agriculture and allied activities,” he said. Plan B had been visualised to meet the expenditure on new schemes under

the Eleventh Plan. The finance minister has promised to come up with an additional Rs 7,000 crore through better tax administration for such expenditure.- Pawar calls for 2-mt-tonne sugar buffer stock http://www.financialexpress.com/fe_full_story.php?content_id=164019 ASHOK B SHARMA Posted online : Sunday, May 13, 2007 at 0000 hours IST NEW DELHI, MAY 12 : The Union agriculture minister, Sharad Pawar on Saturday said some incentives need to be given to the sugar industry, which was facing a difficult situation due to an estimated record production of 26.5 million tonne and consequent fall in prices. “After rendering export subsidy, we feel there is a need to create a buffer stock of 2 million tonne sugar,” said Pawar at the sidelines of 78th AGM of the Indian Council of Agricultural Research Society here. He, however, denied that the industry had asked for creation of 5 million tonne buffer stock for sugar. The minister also hinted at the possibility of government importing up to 5 million tonne wheat for maintaining buffer stock. “We have last year’s stock of 4.5 million tonne. We have procured so far 9.2 million tonne, and our annual requirement is 1.2 million tonne. So, we have some excess stock of wheat. But to face drought and other natural calamities, there is a need to build up stocks,” he said. The State Trading Corporation of India (STC), on behalf of the government, has recently floated a tender for import of one million tonne

wheat. The government’s decision to import wheat despite a bumper production of about 80 million tonne has been challenged in the Supreme Court by the Navdanya Trust .------ Montek favours selective waiver of agriculture loans http://www.financialexpress.com/fe_full_story.php?content_id=164022 ASHOK B SHARMA Posted online : Sunday, May 13, 2007 at 0000 hours IST NEW DELHI, MAY 12: With a view to push the farm growth rate to 4%, the Planning Commission may suggested waiving agriculture loans on selective basis, restructuring subsidies and increasing investments in rural infrastructure. “I

am not in favour of debt waiver for farmers. However, the banks can waive the loans on case-to-case basis where the farmer is not a wilful defaulter,” the deputy chairman of the Planning Commission Montek Singh Ahluwalia said. Interestingly Ahluwalia made this statement just few days ahead of the meeting of the full Plan panel scheduled on May 14, to be chaired by Prime Minister Manmohan Singh. The meeting would consider various steps for accelerating farm growth, including one-time settlement of farmers’s debt. Ahluwalia, however, said that across-the-board debt waivers weakens the farm credit system as past experiences suggest. He said the present system was not the right way to provide incentives to farmers. “We are not seeking cut in subsidies because we cannot afford it as investment is needed in rural areas. The same amount could be invested in rural areas to produce

better results,” he said. According to the agenda paper for the proposed Plan panel meeting, subsidies on fertiliser, power and irrigation led to degradation of natural resources and even a miniscule reduction in farm subsidies could finance relatively large agriculture projects. -------

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