G-4, WTO & Trade Issues + GMOs & GM FOOD + Sorry NO Credit For Tractor Purchase

[Guest guest]

In This NEWS Bulletin ************************************ On G-4, WTO & TRADE ISSUES --- 1. EU offers India a helping hand; to import more sugar 2. Farm subsidies kill G4 negotiations - India blocks quid pro quo market access demands 3. India warns US: don’t split developing nations On GMOs ---- 4. GEAC denies nod for multi location trials of GM food crops 5. Panel to allow more GM crops for field

trials today 6. Ordinance planned to control Bt cotton seed prices in Andhra Pradesh On TRACTOR LOANS---- 7. Sorry, no credit - Loans for tractors EU offers India a helping hand; to import more sugar http://www.financialexpress.com/fe_full_story.php?content_id=167718 ASHOK B SHARMA Posted online: Thursday, June 21, 2007 at 0000 hours IST NEW DELHI, JUN 20 : The European Union has come to the rescue of Indian sugar industry by offering to import additional 6,000 tonne raw sugar against the preferential tariff. With this preferential access for 6,000 tonne in place, the country can export 32,000 tonne sugar, including 10,000 tonne plantation white sugar to EU. Indian sugar industry has been lobbying with Brussels to increase the preferential quota access. In a discussion with the director in the European Commission ministry of agriculture and rural development, Russell Mildon last week, the EU agreed to give preferential

access to additional 6,000 tonne raw sugar from India. “We pleaded for augmentation of European preferential quota for import and we succeeded,” the director of Indian Sugar Mills Association, SL Jain told FE. According to the data available till April, this year over 693,870 tonne sugar has been exported to 36 countries since the cane crushing began in October 2006. Industry has estimated a bumper sugar output of 28.5 million tonne in 2006-07 sugar year. With a carryover stock of 4 million tonne from the previous year and with a bumper production, the current year is likely to have a surplus of 13.5 million tonne after meeting the domestic consumption need of 19 million tonne. In this situation the industry is hard pressed with falling prices in domestic market and therefore seeking outlet for exports. But the export front is not that remunerative with falling global prices for

white plantation sugar. “Global prices for plantation white sugar is falling below $ 300 a tonne, while the prices of raw sugar is appreciating. We are, therefore keen on export of raw sugar. Many of the importing countries are setting by refineries and would need raw sugar,” said the director of National Federation of Cooperative Sugar Factories, Vinay Kumar. Industry has already booked export contract orders for 235,000 tonne raw sugar to Dubai refineries. The export would commence from December, this year, he said. ----------- Farm subsidies kill G4 negotiations India blocks quid pro quo market access demands http://www.financialexpress.com/fe_full_story.php?content_id=167854 ASHOK B SHARMA Posted online: Friday, June 22, 2007 at 0111 hours IST NEW DELHI, JUN 21: Negotiations among key World Trade Organisation (WTO) member countries over a new trade agreement collapsed midway on Thursday, with India and Brazil blaming the unwillingness of the US and the EU to cut their massive farm subsidies. The US and the EU, for their part, demanded greater access for their farm and industrial products in developing country markets, which India and Brazil refused to accede to. The failure of the talks, which began on Tuesday in Potsdam, Germany, amongst India, the US, the EU and Brazil, proved almost a repeat of the aborted July 2006 talks. Without a deal among the G4 members, the Doha Round that began in late 2001 appears destined to being put on hold for years due to the upcoming presidential elections and subsequent policy changes in the US. “Talks have failed as India refused to dilute its stand on agricultural market access. There was no convergence and there was no

question of India making any compromise,” commerce minister Kamal Nath said. The US refused to budge on removing its alleged ‘trade distorting’ subsidies from $22 billion to $13-14 billion, as demanded by developing countries like India. “If this is to be called a development round, we need to correct the flaws in terms of subsidies,” Nath said. “There is no logic or equity” in the US offer of cutting farm subsidies to $17 billion from $22 billion, he added. India reiterated that the food security and livelihood needs of developing countries would not be diluted. After the G4 talks failed, WTO director general Pascal Lamy said that multilateral talks would continue in Geneva. “I now call on the members of the G4 to contribute to the multilateral negotiating process, which will continue as of today in Geneva,” Lamy said. ---- India warns US: don’t split developing nations http://www.financialexpress.com/fe_full_story.php?content_id=167991 ASHOK B SHARMA Posted online: Saturday, June 23, 2007 at 0026 hours IST NEW DELHI, JUN 22: India has warned the US and

the EU against any effort to split developing nations at the Doha Round of the World Trade Organisation (WTO). “I caution the EU and the US that no effort should be made by them to split developing countries. Such efforts won’t succeed and it will be futile to divide developing nations by misleading them. India stands solidly with developing countries,” commerce & industry minister Kamal Nath said, adding that this was the end of the road for the Group of Four, or G4. Nath was reacting to remarks by US trade representative Susan Schwab that advanced developing countries like India, Brazil and China should liberalise their markets specifically for other developing countries. Schwab also said that Brazil had sacrificed its own economic interests by joining India on the issue of agriculture and market access. Negotiations among key WTO member countries over a new trade agreement collapsed midway on Thursday,

with India and Brazil blaming the unwillingness of the US and the EU to cut their massive farm subsidies. The US and the EU demanded larger access for their farm and industrial products in developing country markets, which was blocked by India and Brazil. Nath also said Thursday’s breakdown of talks among the G4 (consisting of India, Brazil, the US and the EU), representing 150 member countries of the WTO, meant that the group had ended its role in evolving a consensus between the developing and developed world. On services, where India has a comparative advantage, Nath said the US must bind commitments on allowing free movement of professionals. Trade Tiff • I caution the EU and the US that no effort should be made by them to split the developing countriesKamal Nath• Brazil sacrificed its own economic interests by joining India on the issue of agriculture and market accessSusan

Schwab--- GEAC denies nod for multi location trials of GM food crops http://www.financialexpress.com/fe_full_story.php?content_id=167916 ASHOK B SHARMA Posted online: Saturday, June 23, 2007 at 0000 hours IST NEW DELHI, JUN 22: The Genetic Engineering Approval Committee (GEAC) has not approved multi-locational research trials (MLRT) of genetically modified (GM) food crops. The field trials of GM crops, which was on the agenda for Friday’s discussion included six Bt rice hybrids, three Bt okra hybrids, two GM corn crops, eight Bt eggplant hybrids. The committee had asked seed companies concerned to submit validated protocol for

detection of 0.01% level of genetic contamination, subject to which the field trials of GM food crops would be considered. The GEAC, however, approved the procedure for import of soyoil extracted from Roundup Ready Soybeans as proposed by Solvent Extractors’ Association of India . The GEAC, in its 78th meeting on Friday, approved MLRT of several Bt cotton hybrids expressing genes and events which were earlier approved. It also approved strip trials of Bt cotton hybrids expressing genes and events approved earlier. GEAC allowed experimental seed production of Bt cotton hybrids in different parts of the country. Permission to conduct MLRT of Bt cotton expressing approved gene/ events have been approved. This includes BG I cotton hybrids, BG II cotton hybrid, cry1Ac gene, 3 intra-hirsutum hybrids, 2 inter-specific hybrids, 3 inter-specific hybrids, 5 Bt cotton hybrids, Bollgard

cotton hybrids has been given. The MLRT will be done in central and south zones at various locations. The committee has also approved the proposal for strip trials of Bt cotton expressing approved gene/events. This will cover 35 Bt cotton hybrids, 115 transgenic Bt cotton hybrids, 29 intra-specific Bt cotton hybrids and others will be included. Experimental seed production of Bt cotton expressing approved gene/events has also been given approval. The Large Scale Field Trials of Bt cotton expressing new gene/events did not get approval because they did not complete full bio-safety studies. This include cotton hybrids expressing Cry1C gene and seed production of cotton hybrids.-- Panel to allow more GM crops for field trials today http://www.financialexpress.com/fe_full_story.php?content_id=167866ASHOK B SHARMA Posted online: Friday, June 22, 2007 at 0130 hours IST NEW DELHI, JUN 21: The Genetic Engineering Approval Committee (GEAC) is slated to approve multi locational research trials of a number genetically modified (GM) food crops at its meeting on Friday. These GM crops include six Bt rice hybrids, three Bt okra hybrids, two GM corn crops, eight Bt eggplant hybrids. The six Bt rice hybrids developed by Mahyco slated to undergo field trials are MRP 5305 Bt, MRP 5319 Bt, MRP 5401 Bt, MRP 5445 Bt, MRP 5629 Bt and MRP 5631 Bt.

Field trials are slated to be conducted in 12 locations in 10 states. The three Bt okra hybrids also developed by Mahyco, namely MHOK-10 Bt, MHOK-12 Bt and MHOK-421 Bt, are slated to undergo field trials in 20 locations across the country. Among two GM corn crops slated to undergo field trials are YieldGard corn and Roundup Ready corn (NK603) developed by Monsanto India. Among eight Bt eggplant hybrids slated to undergo field trials are Malapur local, Manjari Gotha, Kudachi local, Udupi Gulla, 112-GO and Rabakavi local developed by University of Agricultural Sciences, Dharwad and SBJ 9Bt and SBJ 10 Bt developed by Sungro Seeds Research Ltd, Jammu. The Supreme Court in its order of September 22, 2006 had restrained the GEAC from making any fresh approval for GM crops’ field trials. In its recent order of May 9, the apex court has prescribed some new norms for field trials. In this context, the GEAC feels that it is in a positions to approve what it

calls “multi-locational research trials.” Following the apex court’s order of May 9, 2007, the GEAC had set up an in-house panel to study the implications of the court order.The GEAC member-secretary, Ranjani Warrier when contacted confirmed saying “multi-location research trials of some GM food crops are on the agenda for discussions in the 78th meeting of GEAC slated on Friday.” Also in the agenda for discussion are field trials of a number of Bt cotton hybrids and approved events and commercial release of 8 Bt cotton hybrids for central and southern India.------------------ Ordinance planned to control Bt cotton seed prices in AP http://www.financialexpress.com/fe_full_story.php?content_id=167920 KVVV CHARYA Posted online: Saturday, June 23, 2007 at 0000 hours IST HYDERABAD, JUNE 22: In a landmark decision, the Andhra Pradesh government has decided to regulate the prices of Bt cotton seed in the state. It has decided to promulgate an ordinance as last resort. Besides abuse of environment by genetically modified seeds, the proposed ordinance will restrict the price as fixed by the controller of Bt Seed, who is expected to be appointed by the government. “The Cabinet has approved the ordinance and sent for governor’s consent,” the state agriculture minister Raghuveera Reddy told FE. Interestingly, the ordinance also provides penal provisions including imprisonment up to 3 years and/or fine of Rs 5,000 for violating the norms such as selling the cotton seed at higher price over and above the fixed by the controller etc. As of now, only Bt-1 cotton seed is allowed in the state and its price is fixed at Rs 750 per packet of 450 gram. Incidentally, Andhra Pradesh is the first and only state to plan for the executive order to control the Bt cotton seed prices. As agriculture minister says that Bt-2

cotton seed is not relevant, as bollwarm is only the insect, which affects the cotton crop in the state. There is no need for the farmers to buy Bt-2 seed in the state paying Rs 950 per packet, when Bt-1 seed is available at Rs 750 per packet, Reddy argues. --------------------- From The Fields Page - In THE INDIAN EXPRESS Sorry, no credit - Loans for

tractors http://www.indianexpress.com/story/128109.html ASHOK B SHARMAPosted online: Friday, June 22, 2007 at 0000 hrs New Delhi, June 21 : It took

Prime Minister Manmohan Singh one visit to Vidarbha to identify the debt trap that snared farmers. Farmers, he said after last year’s visit, need a reliable network of formal credit if were to keep away from moneylenders. A year on, little has changed. Even if farmers do manage to get crop loans, getting credit for tractors isn’t easy. The National Bank for Agriculture and Rural Development (NABARD), which formulates guidelines for banks that finance the farm sector, has washed its hands off loans for tractors. Earlier, NABARD had stipulated that a farmer with eight acres would be eligible for a tractor loan. But last year, it withdrew this norm and asked banks to evolve their own criteria. The result: banks now have stricter norms and higher collaterals, making it almost impossible for farmers to get tractor loans. For instance, a commercial bank recently issued guidelines that said a farmer who owns a minimum of 10 acres of land and grows three crops would be eligible for credit to purchase a 35 HP tractor. If he wants to purchase a more powerful tractor, he will have to own at least 15 acres and grow three crops a year. Requests for over 45 HP tractors have to clear technical appraisals by the bank’s zonal office. In several cases, banks have restricted the number of co-borrowers to three. The revised guidelines of a commercial bank say: “All borrowers should belong to the same family.” This restricts farmers from jointly owning a tractor. “NABARD’s stipulation of eight acres was too high, denying small and marginal farmers the benefit of tractor loans. But now commercial banks have gone ahead and are evolving even more stringent criteria,” said Ravindra Kumar, managing director of SAS Motors, who developed the low-cost Angad tractors.

While the V.S. Vyas panel on the flow of credit to agriculture had recommended that collaterals should not be in excess of the financed amount, banks are doing just that. Similarly, the R.V. Gupta panel set up by the RBI had said: “The value of security taken should be commensurate with the size of the loan.” Kumar said some banks even held back general credit in regions where there had been defaults. Kumar alleged that such a credit policy had confined farm mechanisation to select regions of the

country. ---

Looking for people who are YOUR TYPE? Find them here.