South Asia + Sugar Export Subsidy + GLOBAL WARMING + Oilseeds Output Up

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NEWS Bulletin from Indian Society For Sustainable Agriculture And Rural Development ********************************* SOUTH ASIA 1. SAARC nations move on multi-transport road 2. SAARC harps on economic union SUGAR EXPORT 3. One-year extention to subsidy on sugar exports 4. Sugar GoM to meet today GLOBAL WARMING 5. Global warming to hit Indian farms: US study 6. Govt can’t continue to subsidise commercial use of water: PM 7. Higher oilseeds output forecast -- SAARC nations move on multi-transport road - (SOUTH ASIA) http://www.financialexpress.com/news/Saarc-nations-move-on-multi-transport-road/216980/ ASHOK B SHARMAPosted online: Friday , September 14, 2007 at 2359 hrs IST New Delhi, Sep 14 South Asian countries have inched forward in developing a multi-modal

transport system for the region by identifying some select pilot projects. India had introduced a concept paper on South Asian Postal Union which was favourably discussed at the first meeting of the SAARC transport ministers in New Delhi on August 31, this year. With several multi-modal transport projects on the anvil, Sri Lanka has proposed setting up of a panel for monitoring of projects and development of institutional capacity building. It was also decided to include Afghanistan in the multi-model transport system for the region. The region’s multi-modal transport projects would attract financial technical assistance from the Asian Development Bank. Establishment of modern border crossing facility, including immigration, parking and cargo handling in Phuntsholing in Bhutan, is one of the identified pilot project. The development of this

facility would help to increase the Himalyan kingdom’s border trade which has suffered due to traffic congestion. India would initiate pilot projects to develop connectivity with its eastern neighbours. It is proposed to connect Birgunj-Kaatihar-Singhabad-Rohanpur-Chittagong in Bangladesh with links to Jogbani and Biratnagar in Nepal and Agartala in Tripura. Other proposed links are to connect Kathmandu-Birgunj-Kolkata/Haldia and Agartala-Akhaura-Chittagong. Frequent air connectivity is also proposed between Male in Maldives and New Delhi and between Islamabad andNew Delhi. Sri Lanka would initiate pilot projects like rail corridor no 5 between Colombo and Chennai in India and ferry services between Colombo and Kochi in India and between Colombo and Tuticorin in India. ----------- SAARC harps on economic union http://www.financialexpress.com/news/Saarc-harps-on-economic-union/217397/0 ASHOK B SHARMAPosted online: Sunday , September 16, 2007 at 0337 hrs IST The sub-continent may soon be in for a kind of economic structure similar to that of the Asean. The eight-nation South Asian Association for Regional Cooperation (SAARC), which met here on Saturday, discussed a number of issues to promote this. The finance ministers of the eight-nation bloc held formation of the South Asian Economic Union, which eventually may become an Asean-type structure. It is expected to take shape by 2010

and will integrate the region economically. The ministers also discussed the proposed Saarc Development Fund, the South Asian Customs Union, enhancing collaborations between capital market regulators in the region and study ways to counter terror funding. However, speaking to reporters after the meeting, finance minister P Chidambaram, made it clear that “one capital market or cross-border listings are for the distant future”. Commenting on the South Asian Economic Union, Chidambaram said, “While an economic union envisages full and complete integration of the economies, the first step towards that is hassle-free procedures at the border.” For this, the ministers have requested the inter-governmental group on customs cooperation to finalise its recommendations on harmonisation of customs tariffs. The South Asian Customs Union would also be an important step in this direction.

The ministers have also decided to set up an expert group on the development of capital markets, which would recommend ways to facilitate cooperation in this field. They have also recommended harmonisation of securities market regulations for enforcement, compliance, investor protection and information sharing. Such efforts would be essential to pre-empt financial crises and prevent regulatory failures. Chidambaram said there was now a growing awareness that capital markets in each member country would require some kind of coordination and integration. However he added, “I think, questions about one capital market or cross-border listings are for the distant future. At the moment, what we are trying to see is whether capital market regulators can work together, share information and cooperate with each other through MoUs.”An inter-governmental expert group on financial issues would develop the road map for the

South Asian Economic Union, the South Asian Customs Union and the SAARC Development Fund, in a gradual and phased manner, the minister added. The finance ministers of the regional bloc also agreed to operationalise the proposed SAARC Development Fund as soon as possible. The fund, with a corpus of $300 million, will work on economic, social and infrastructure issues in the region. Meanwhile, finance secretaries of SAARC, which met on Friday, have decided to study ways to counter terror funding in the region. -- One-year extention to subsidy on sugar exports http://www.financialexpress.com/news/Oneyear-extention-to-subsidy-on-sugar-exports/216126/ ASHOK B SHARMAPosted online: Wednesday, September 12, 2007 at 2339 hrs IST New Delhi, Sept 12 The group of ministers (GoM) on sugar headed by the external affairs minister Pranab Mukherjee has decided to extend the subsidy being given for exports by one year. At present, Rs 1,350 per tonne is rendered as support by the government to mills located along the coast for undertaking exports. Sugar mills located away from the coasts are being given Rs 1,450 a tonne. Apart from Mukherjee, the GoM extended the export subsidy regime by one year till April 2009. The GoM was attended by agriculture minister Sharad Pawar, commerce minister Kamal Nath, finance minister P

Chidambaram. According to sources, export subsidy was actually not on the original agenda for discussion. “The issue was brought in as the GoM failed to arrive at a consensus on the three listed issues,” said a senior official The meeting was slated to deliberate on deferment of payment of excise duty by sugar mills, bringing ethanol under the central sales tax (CST) regime and a national cane pricing policy. The finance ministry is opposed to the idea of deferment of excise duty payment by mills. The sugar industry has asked for a deferment after facing drought for two successive years in the major cane-growing regions. This year, they faced the problem of falling sugar prices on account of surplus production. On the other two issues— brining ethanol under the CST regime and a national policy for cane pricing—the GoM felt that more homework and consultations with states were

needed. The sugar industry wants ethanol to be brought under CST to avoid any state levy on it. On a similar line, they have demanded a national policy on cane pricing to prevent the state governments from announcing their state advised prices (SAPs). ----------- Sugar GoM to meet today http://www.financialexpress.com/news/Sugar-GoM-to-meet-today/215863/ ASHOK B SHARMAPosted online: Tuesday , September 11, 2007 at 2332 hrs IST New Delhi, Sept 11 The group of ministers (GoM) on

sugar headed by the external affairs minister, Pranab Mukherjee is slated to meet on Wednesday and deliberate on the issue of deferment of payment of excise duty, bringing ethanol under central sales tax regime and national cane pricing policy. The GoM had earlier approved 5% mandatory blending of auto-fuel with ethanol from October this year and Nabard package for the cooperative sugar mills. Both these proposals are sent to the Union Cabinet for final approval. The industry has asked for deferment of payment of excise duty as they were crippled on account of drought in two successive years in the major cane growing regions. This year they faced the problem of falling sugar prices on account of surplus production. The finance ministry is, however, opposed to the idea of the deferment of payment of excise duty by sugar mills. The GoM consists of agriculture minister Sharad

Pawar, finance minister P Chidambarm, commerce minister Kamal Nath, apart from Mukherjee who chairs the panel. The GoM is also slated to deliberate on declaring ethanol as “goods of special category” under 5A of Central Sales Tax Act. At present state governments are allowed to impose state levy on ethanol and the sales taxes imposed by state governments vary widely. The industry has demanded that there should be one uniform tax on ethanol and this could done through central sales tax regime. The industry has also complained about state governments fixing their own state advised prices (SAPs) for canes, even though the statutory minimum price (SMP) for canes are fixed by the central government. The SAPs fixed by state governments are higher than the SMP fixed by the central government. In this context, the industry has suggested a need for a national policy for cane pricing. ----------- Global warming to hit Indian farms: US study http://www.financialexpress.com/news/Global-warming-to-hit-Indian-farms-US-study/217279/ ASHOK B SHARMAPosted online: Saturday , September 15, 2007 at 2032 hrs IST New Delhi, September 14: Global warming may result in sharp decline in crop production in India, Pakistan and in most of the African and Latin American countries, according to a recent study done by the US-based Center for Global Development and Peterson Institute for International

Economics. The study predicts 30% to 40% decline in agriculture capacity in India over the time. It also says about the possibility of farmlands turning into desert in many parts of the southern hemisphere in the present century. However a handful of rich countries like US, Canada, Russia and some European countries are likely to benefit on account of global warming. According to the lead author of the study, William Cline the projected beneficial results to crops on account of carbon dioxide concentration in the atmosphere does not hold good and would “flatten out over time.” Cline said that crops like maize would not benefit from carbon dioxide concentration. Some crops can gain from increased carbon dioxide concentration in the atmosphere, but that only to the extent of 15%. “Wheat, rice and soybeans are continuing to benefit from increased

carbon dioxide emissions, but that that improvement is likely to taper off,” he said. Cine’s caution is significant in the context as India has already witnessed damage to wheat crop in the recent past, due to sudden spurts in temperatures before ripening. Perennial rivers are gradually drying up and aberration in rainfall are being noticed at regional levels. A shift in monsoon rainfall pattern has occurred since last three years with heavy rainfall in drought prone areas and scanty rain in flood prone areas The study also said that global farm productivity would decline by in the range of 3% to 16% by 2080. In Australia crop yield would decline in the range of 16% to 27%. Among the developing countries, Sudan and Senegal are expected to witness over 50% decline, resulting in a collapse of farm system. -------------- Govt can’t continue to subsidise commercial use of water: PM http://www.financialexpress.com/news/Govt-cant-continue-to-subsidise-commercial-use-of-water-PM/215856/ ASHOK B SHARMAPosted online: Tuesday , September 11, 2007 at 2323 hrs IST New Delhi, Sep 11 Prime Minister Manmohan Singh today said government cannot continue to subsidise the economic and commercial use of water. “Providing free power to farmers has encouraged excessive use of pump sets and excessive drawing of ground water. If there is economic pricing

of power, there would be some incentive for conserving ground water,” he said inaugurating the National Congress on Ground Water here. Water conservation and management could be better served through appropriate incentives and penalties, Singh said adding “we cannot continue to subsidise the economic and commercial use of water.” “There are related policies that must be corrected to ensure water conservation, especially ground water,” he said. Observing that human kind has not done enough to replenish, conserve and safeguard the sources of water supply, he said, “On the contrary, given the threat of climate change and global warming, we face the real prospect of reduced supply of water.” “This threat is of particular concern to us in India since we have, since times immemorial, depended on glaciers for our water supply in this part of

our sub-continent,” he said. Soz said over-exploitation and contamination of ground water in some areas has led to apprehension about its sustainability. Noting that the challenge of water scarcity could only be addressed in an interdisciplinary, holistic and consensual manner, the Prime Minister regretted that the country has not paid much attention to water both as a public and economic good. The Prime Minister asked the Advisory Council on Artificial Recharge of Ground Water to create widespread national awareness and a genuine national consensus on an equitable, efficient and environmentally sustainable water policy. Referring to the challenges posed by floods and drought, Singh said while the challenge of floods was increasingly linked to poor soil conservation, lack of afforestation and inadequate infrastructure for water conservation, the problem of drought was a

manifestation of inadequate investment in repair, renovation and maintenance of water bodies, recharge and rainwater harvesting----- Higher oilseeds output forecast http://www.financialexpress.com/news/Higher-oilseeds-output-forecast/215633/ ASHOK B SHARMAPosted online: Tuesday , September 11, 2007 at 0003 hrs IST New Delhi, Sep 10 The apex body of the vegetable oil industry in the country has estimated that summer (kharif) oilseeds production, with the exception of cotton seeds, is likely to be around 15.15 million tonne in the current year. In the previous year, the industry had estimated a production of 13.15 million tonne oilseeds. The Central Organisation for Oil Industry and Trade (COOIT) has based its estimate on the government data of September 7 on the area coverage of oilseed crops. According to COOIT the production of cottonseeds is likely to be 31 million bales in 2007 as against 27 million bales in the previous year.The industry has estimated that groundnut output will be 4.6 million tonne, soybean 8.6 million tonne, sunflower seed 4,50,000 tonne, sesame seeds 3,50,000 tonne, niger seed 1,00,000 tonne, that of castor seed 8,00,000 tonne and toria 2,50,000 tonne. According to COOIT, the production the production of sunflower seed and sesame seed has decline in the current season as compared to that in the previous year.The production of groundnut, soybean, niger seed, castor seed, toria and cotton seed has

increased.COOIT is expected to come out with a revised estimate of summer oilseed production at its 45th All India Convention on kharif oilseed crops slated to be held in Nagpur in Maharashtra on October 28, this year.----------

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