South Asia & CLIMATE CHANGE + Drug Trafficking + TRADE ISSUES

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NEWS Bulletin from Indian Society For Sustainable Agriculture And Rural Development - 1. India urges South Asian countries to jointly combat CLIMATE CHANGE 2. India calls for joint effort for development in South Asia 3. India becoming centre for drug trafficking: INCB On TRADE ISSUES--- 4. Dependence on select markets hurts fish exports 5. Carpet sector in need of fiscal support 6. Cooking

oil production from domestic sources likely to be at 8.48 million tonne 7. Indian oilmeal producers in search of new markets 8. Govt restricts BASMATI RICE exports 9. Govt imposes terms for wheat purchase by pvt trade 10. Farmers demand changes in cane price computation ----- India urges South Asian countries to jointly combat climate change http://www.financialexpress.com/news/India-urges-South-Asian-countries-to-jointly-combat-climate-change/280728/0 ASHOK B SHARMAPosted online: Wednesday, March 05, 2008 at 2027 hrs IST New Delhi, March 5: India called upon her neighbours in South Asia to jointly tackle the challenges posed by climate change and bio-fuel programme which may have far reaching implications for

agriculture. Inaugurating the three-day South Asian science-based agricultural transformation organized by the Iffco Foundation in collaboration with government agencies on Wednesday, the Union Agriculture Minister Sharad Pawar said, "the threats posed by climate change and impact of the pursuit of bio-fuels may have far reaching implications for agriculture policy. Our research has to respond to these demands in expeditious and efficient manner." He said that with agriculture becoming complex today we need science and technology interventions at a much larger scale at all stages of the agricultural chain. The urgency of enhancing farm productivity, bridging yield gaps and strengthening regional agricultural research, extension and farmer linkages can hardly be overemphasized, he said and added that investments and regional cooperation in R & D must, therefore, be at top of the policy agenda of South Asian

countries. "It is well accepted that investments in R & D pay off handsomely with appreciably high internal rate of return. Given the agro-climatic advantages and availability of manpower, there is potential to turn agriculture in the SAARC (South Asian) region into a dynamic sector with rapid technological accelerating growth and reducing poverty, he said. He also called for better synergy in R & D efforts and said that India was ready to extend cooperation through her excellent network of research institutions.

Pawar noted that South Asian countries had witnessed dramatic improvements in food availability and poverty alleviation at national levels, particularly following Green Revolution. "But Green Revolution seems to have run its course in the region. The total factor productivity growth rates have decelerated. Non-availability of quality and cost-effective inputs, low efficiency of use of inputs and fast deteriorating soil health, water resources and biodiversity are the critical concerns for agriculture in the region. The conventional extension system has become outmoded." Pointing out that the intra-regional trade in South Asia was low at 0.8% of GDP as compared to 27% in East Asia, he called for strengthening the South Asia Free Trade Area (SAFTA). However he said, "Looking at the micro picture from the viewpoint of smaller countries, bilateral trade is still significantly large

and rising." The Afghanistan Minister of Agriculture, Obaidullah Ramin urged for assistance and cooperation for rebuilding his country's agriculture. The Agriculture Minister of Bhutan, Sherub Gyaltshen expressed concern over the fast melting of Himalayan glaciers which in the near future may adversely impact the country's agriculture, particularly the most treasured medicinal and aromatic plants. He also said the Happiness Index formulated by His Majesty' Government should be used to judge the overall development perspectives. Sri Lankan agriculture minister, Malthripala Sirisena said that his country would deploy modern biotechnology including the transgenic for ensuring food production.... --- India calls for joint effort for development in South Asia http://www.financialexpress.com/news/India-calls-for-joint-effort-for-development-in-South-Asia/280725/0 ASHOK B SHARMAPosted online: Wednesday, March 05, 2008 at 2005 hrs IST New Delhi, March 5: India has called upon her South Asian neighbours to jointly work for ensuring social development of the people along with economic growth. Education, a vital aspect of social development should not be missed out in the process. Inaugurating the two-day 2nd meeting of the Regional Forum of Ministers of Social

Development from South Asia co-hosted by UNESCO here in Delhi on Wednesday, The Union Minister for Human Resources Development, Arjun Singh said, "even the most impressive and robust economic progress is rendered meaningless if social development lags behind." He also said that one of the most critical aspects of social development was education. "Provision of free and compulsory education for the relevant age group of 6 to 14 years has been mandated by our Constitution as a fundamental right, and we are in the process of making a law dedicated to this objective," he said. He hoped that the promises made in the last meeting of the forum in the form of Bhurban Declaration would be translated into a realistic plan of action in the present meeting of the forum As a sequel to the first Forum of Ministers on Social Development of South Asia who met on May 26-27, 2006 in Bhurban in

Pakistan, this meeting is the second in the series of UNESCO's and the region's initiative to organise a network of South Asian ministers of social development. The purpose of the forum is to establish a network among the countries of the region to address issues related to social justice and development in the overall theme of the social sciences research and its policy-linkages and in particular, the contribution that social sciences can provide to the policy making process. Singh further said, "even though there are limits to public funding, and there may be temptations to opt for market determined policies on grounds of efficiency, education can be left to the market forces only at our peril. That is why in India we have a nine-fold allocation proposed for education in our 11th five-year Plan over the 10th Plan. Expansion of opportunities must be accompanied by a concern for equity – particularly, in the access to education for the marginalized sections of populations. Apart from education, there are equally good reasons for focusing on the other social development issues – public health, for example". As agreed at Bhurban, India has been honoured by

member countries by asking her to assume the chair of the forum for the current year. The theme selected for the of the current meeting is -. Transparency, Right to Information and Social Development' reflects the shared vision of good governance common to all the governments of the region. The ministers of social development from Afghanistan, Maldives, ministers of women, children and social welfare from Bangladesh, Nepal and Sri Lanka and minister of education from Bhutan participated in the meeting alongwith the minister of social development of South Africa, Skweyiya, who is also the president of the Management of Social Transformation (MOST) Programme.... --- India becoming centre for drug trafficking: INCB http://www.financialexpress.com/news/India-becoming-centre-for-drug-trafficking-INCB/280726/ ASHOK B SHARMAPosted online: Wednesday, March 05, 2008 at 2007 hrs IST New Delhi, March 5: The annual report of the International Narcotics Control Board has noted increased trafficking and abuse of cannabis and heroin in South Asia. The West African traffickers have targeted countries in South Asia, particularly India for cocaine trafficking. The report released on Wednesday further said, "South American cocaine is trafficked to India in small quantities where it is exchanged for South-West Asian heroin bound for Europe and North America. India is increasingly being used as a major transit country and also as a destination country for drug trafficking. Cross-border smuggling is relatively easy due to the porous borders between Bangladesh, Bhutan, India and Nepal. Illicit cultivation and abuse of

cannabis continue to be a problem in most of the countries in South Asia." The report said that licitly manufactured pharmaceutical preparations such as codeine-based syrup, benozodiazepines and buprenorphine were smuggled from India into Bangladesh, Bhutan, Nepal and Sri Lanka. In India, organized criminal groups traffic in amphetamine-type stimulants. In South Asia, injection of heroin and pharameceutical preparations were contributing to the spread of HIV/AIDS, it said. "In India, the areas with highest incidences of drug-related HIV/AIDS continue to be the north-eastern border with Myanmar and large urban areas. Of those who abuse drugs in Maldives, 20% to 25% inject them. Drug abuse by injection rose from 8% in 2003 to 29% in 2006 and three-quarters of imprisoned drug offenders were drug abusers. The report noted with concern that adequate data on drug abuse was not

available for Bhutan and Nepal. -------- Dependence on select markets hurts fish exports http://www.financialexpress.com/news/Dependence-on-select-markets-hurts-fish-exports/279447/0 ASHOK B SHARMAPosted online: Monday , March 03, 2008 at 0058 hrs IST New Delhi, Mar 2 India is dangerously dependant on few destination Markets for exports of marine products. This makes Indian exports susceptible to negative

consequences of trade barriers imposed by importing countries, according to a study conducted by the Delhi-based Centre for Social Research The FAO has categorised India as a medium-level fish producing country. Its fish production is about 4% of the world capture and 5% of the world volume and value in aquaculture. While in over 16 years (1989-2005) the volume of exported marine products increased 4.6 times, the unit value increased only by 2.5 times, implying that Indian fishery exports still occupy a low value segment in the global fish trade, the study said In August 1997, the European Commission slapped a ban on Indian marine products, citing hygienic conditions and the ban was lifted after four months on exporters undertaking the responsibility for improving the quality. However, the effect of the European ban was felt in 1998-99 with the loss of 21.48% in export quantity

and 14.58% in dollar value. In 2002, Japan imposed strict standards on shrimps imported from India and made it mandatory for the consignments to be accompanied by a certificate stating the materials were of antibiotics. In 1996, the US imposed a ban on Indian shrimps for not using appropriate measures to reduce turtle mortality caused by trawlers, but this measure had little impact on overall Indian marine exports. The US imposed anti-dumping duties on Indian marine products in 2003. Analysing Indian marine exports to major destinations, the study said that from 1996 to 2000, trade with West Asian countries was stable, while exports to South East Asian countries showed a volatile trend with a serious drop that occurred in 1998-99 and also later fluctuations. The export to EU showed a steady growth though disturbed in 1997-98 due to the ban. The most major destination for Indian marine products are China with 1.4 million tonne, EU with 1.4 million tonne, South East Asia with 0.6 million tonne, Japan with 0.6 million tonne, US with 0.6 million tonne, and West Asia with 0.2 million tonne. While China receives the largest share of Indian marine products-27% by volume - it ranks lowest among India's export destination as far as unit value is concerned. The opposite holds for Japan and US, while being at the bottom of the

list of major Indian exports by volume, they top the ranks in terms of unit value. The study noted that previously there was an over-dependence on the Japanese market for shrimp exports. In the recent past there was a gradual decline in intake by Japan and increasing absorption by the US and others. The US, which was a traditional buyer of small-sized shrimp from India, started buying other varieties including black tiger shrimp. The value per unit of Indian exports to Japan decreased by 30% over 9 years, while the unit value of exports to US doubled in 1996-2001. But the growth was not sustained and since 2002 the unit value of exports to the US was decreasing gradually. Frozen fish is another major item of exports and its growth pattern has been very volatile with several major dips. In value terms it is in the least value category - just about Rs 47.55 a tonne. So also is the export of frozen squids,

cuttlefish. Promises, however, hold better for exports of frozen shrimp and dried fish, which have higher unit value. ... ------------------------------- Carpet sector in need of fiscal support http://www.financialexpress.com/news/Carpet-sector-in-need-of-fiscal-support/279432/ ASHOK B SHARMAPosted online: Monday , March 03, 2008 at 0048 hrs IST New Delhi, Mar 2 The liberalised market regime in a rapidly globalising Indian Economy has begun catalysing the transformation of the carpet sector, with demand factors influencing both levels and strategies of production. In this situation, the carpet industry needs adequate support through fiscal and non-fiscal measures to boost production and exports, said a study done by the Delhi-based STADD Development Consulting Pvt Ltd.

The study called for exemption from local taxes, enhancing of availability of affordable market shelf space, tax exemptions on capital investment leading to productive technology induction, grants for participation in fairs and exhibitions. It noted that the ban on goods produced by child labour in the global market has replaced child workers with women workers in the sector, albeit at wages lower than their male counterparts. But the enhancement of the capabilities of women workers to meet the production and market need and leading to women empowerment did not take place. Increased competition from the market and the demand for goods at lower prices, led to the shift to mechanised production of tufted carpets from hand knotted carpets over the last decade. In this context, the study suggested the production process needs to be better integrated to market needs. To achieve this,

it said suitable linkages need to be encouraged between exporters/buyers and weavers, thereby reducing the number of middlemen currently trading without adding value. Improving Markets and optimizing the supply chain through e-commerce, federated production, and market mechanisms, including direct contact with buyers, would lead to increases in market size and help largely the women folk in employment. The study suggested formation of self help groups (SHGs) of women for sourcing credit and cluster development approach with linkages created to SHGs at grassroots, for better bargaining power, business viability, optimal input planning, and viability of external interventions like training, design improvement, and market competitiveness. --- Cooking oil production from domestic sources likely to be at 8.48 million tonne http://www.financialexpress.com/news/Cooking-oil-production-likely-to-be-at-8.48-million-tonne/279824/ ASHOK B SHARMAPosted online: Monday , March 03, 2008 at 2347 hrs IST Agra, Mar 3 The total production of nine oilseeds in 2007-08 in the country is expected to be 25.49 million tonne (MT) as compared to 22.97 MT last year. Cooking oil availability from the oilseeds produced in the year and from other sources like cotton seeds, copra, minor oilseeds, local oil palm, would be about 8.48

MT as compared to 7.76 MT, according to recent estimates of the trade and industry. The Central Organisation for Oil Industry and Trade (COOIT), which concluded its deliberations in Agra on Sunday, came to a conclusion that the output of oilseeds could have been much better, had the area under rabi (winter) oilseeds crop not declined from 738,000 hectare to be at 8.958 million hectare (as on February 22, 2008). Consequently, the output of winter oilseeds is expected to decline to 8.60 MT from 9.52 MT. Due to a better performance of kharif (summer) oilseeds crops, the total oilseeds production in 2007-08 is expected to rise to 25.49 MT from 22.97 MT in the previous year. The major shortfall in winter oilseeds production is marked in rapeseed and mustard which is estimated at 5.09 MT as compared to 6.02 MT in the previous year. The area under rapeseed and mustard declined to 5.96 million hectare from 6.607 million hectare in the previous year. According to COOIT in the year 2007-8 as a whole, groundnut seed

output is expected at 3.2 million tonne, that of soybean at 8.46 million tonne, that of rapeseed and mustard at 5.09 million tonne, that of sunflower seed at 1.45 million tonne, that of seasame seed at 360,000 tonne, that of castor seed at 910,000 tonne, that of nigerseed at 3,000 tonne, that of safflower seed at 160,000 tonne and that of linseed at 180,000 tonne ---------- Indian oilmeal producers in search of new markets http://www.financialexpress.com/news/Indian-oilmeal-producers-in-search-of-new-markets/281593/ ASHOK B SHARMAPosted online: Friday , March 07, 2008 at 2003 hrs IST New Delhi, March 7: The Solvent Extractors' Association of India (SEA) is planning to send a trade delegation to Taiwan, South Korea, Vietnam, Cambodia and Thailand in the first half of May 2008 to renew contact with feed millers and importers of feed ingredient and to expand Indian export market for oilmeals. Markets for Indian oilmeals will be explored in Cambodia. In 2007-08 till February, this year, Vietnam increased the import of oilmeals from India to 1,436,448 tonne consisting of 1,235,825 tonne soybean meal, 67,848 tonne rapeseed meal and entire quantity of 132,000 tonne ricebran extraction from India. South Korea imported 841,575 tonne from India consisting of 385,925 tonne rapeseed meal, 240,625

tonne soybean meal and 210,125 tonne castorseed meal. Japan imported 608,175 tons mainly of 597,475 tonne soybean meal and 10,700 tonne rapeseed meal. China reduced the import from India due to better local crushing and imported 109,825 tonne rapeseed meal, 132,325 tonne of soybean meal and 44,150 tonne groundnut meal. In April 2007, FOB realization for soybean meal was $ 269 per tonne which shot up to 417 per tonne in February 2008, similarly rapeseed meal realization jumped to nearly double and reached at $ 220 a tonne, while groundnut meal FOB price increased to $ 317 a tonne and castor meal jumped to $ 125 a tonne from $ 70 a tonne in one year. Better FOB realization has given good support to domestic processing industry and nullified the impact of rupee depreciation. The overall export of oilmeals for the period April 2007 to February 2008 is reported at 4,557,627 tonne compared to 4,415,250 tonne in the

like period in the previous fiscal year. In the first half of the year, due to lower crop during 2006-07, the export declined, however with record soybean crop of 9.4 million tonne in 2007-08 coupled with record price realization in international market pushed up the export of oilmeals in second half of 2007-08. The export of oilmeals in February 2008 was 759,275 tonne compared to 592,775 tons in February 2007, up by 28% due to increased in export of soybean, rapeseed, castor meal and groundnut meal. ------- Govt restricts Basmati rice exports http://www.financialexpress.com/news/Govt-restricts-Basmati-rice-exports/281594/ ASHOK B SHARMAPosted online: Friday , March 07, 2008 at 2005 hrs IST New Delhi, March 7: The government has imposed restrictions on the export of Basmati rice and has said that its exports would be permitted only against minimum export price (MEP) on FOB basis at $ 900 ( Rs 36,000) a tonne. The MEP on FOB basis for export of non-basmati rice has been raised to $ 650 (Rs.26, 000) a tonne According to a notification issued by the directorate general of foreign trade (DGFT), the export of Basmati and non-Basmati rice will be restricted through only four ports namely Kandla, Kakinada,

Kolkata and JNPT, Mumbai. However, this restriction would not apply to exports of rice allowed under various exemptions/relaxations like export under food aid programme. "No export under transitional arrangements under Para 1.5 of the Foreign Trade Policy 2004-09, as amended from time to time, shall be allowed for restrictions imposed under the present notification," the official press release said and clarified that only the quantities being loaded in the ships at the time of this notification would be allowed to be exported under the transitional arrangements. Further no export of rice will be permitted against valid irrevocable commercial letters of credit opened before the issue of the present notification on March 5, 2008. It may be recalled that earlier export of Basmati rice was free and there was no restriction of MEP. Also, export of non-basmati rice was allowed only if the MEP, on FOB basis, was

above $ 500 (Rs.20, 000) a tonne It may be further recalled that earlier there was no restriction regarding mode of export of basmati or Non-basmati rice. However, with present notification exports of Basmati and non-Basmati rice has been restricted through the ports of Kandla, Kakinada, Kolkata & JNPT, Mumbai only. No export of rice will be permitted through any other port or through rail or road, except the quantities allowed earlier vide different exemptions/ relaxations---- Govt imposes terms for wheat purchase by pvt trade http://www.financialexpress.com/news/Govt-imposes-terms-for-wheat-purchase-by-pvt-trade/281589/ ASHOK B SHARMAPosted online: Friday , March 07, 2008 at 2010 hrs IST New Delhi, March 7 The government has imposed conditions on corporate houses for purchasing wheat from farmers in the ensuing marketing season beginning April 2008 by invoking the provisions of section 3 of Essential Commodities Act, 1955 (10 of 1955). On Friday the government issued the Wheat (Stock declaration by Companies or Firms or Individuals) Order 2008 which requires submission of return by a company or firm or individual who purchases wheat in excess of 10,000 tonnes (total purchases made throughout

the country) during the Rabi Marketing Season 2008-09 (April-March). The submission of return should be made before the secretary in the department of food of the state from where maximum quantity has been purchased. A return in the Form at such interval as may be specified by the central government., an official press release said. In case the purchase of wheat exceeds 25,000 tonne (total purchases made throughout the country), the return in the Form at such intervals specified therein should be furnished to the under secretary (policy-III) in the central government's department of food. Intimations through fax or email would also be accepted. The state governments with which such returns are filed by any company or firm or individual in Form declaring purchase of wheat in excess of 10,000 tonnes should submit a consolidated monthly report to the under secretary (policy-III) in the central government's

department of food and public distribution by the 10th of every month. The central government imposed these conditions of purchase of wheat by private trade, apprehending large-scale hoarding and subsequent market manipulation. ------ Farmers demand changes in cane price computation http://www.financialexpress.com/news/Farmers-demand-changes-in-cane-price-computation/281592/ ASHOK B SHARMAPosted online: Friday , March 07, 2008 at 2010 hrs

IST New Delhi, March 7: Farmers have demanded a change in the formula for fixation of statutory minimum prices (SMPs) for sugarcane by incorporating a 10% risk factor. A delegation of Kisan Jagriti Manch met the chairman of the Commission for Agricultural Costs and Prices (CACP), Haque on Friday and suggested that apart from incorporating 10% risk factor in the computation of cane SMPs, a 10% managerial cost should also be considered. Land rental should be calculated at prevailing market price. The transportation cost of sugarcane from the farmers' field to the factory should be borne by the millers. While estimating the SMPs, the farmers said that the rates of interests on loans to farmers for investment should also be factored in at prevailing rates. They alleged that data on the cost of

production generated by the state agriculture universities and the directorate of economics and statistics in the agriculture ministry at the Centre do not reflect the ground realities of the situation and therefore the procedure needs to be rectified. The farmers demanded that the profits generated by the mills from byproducts like ethanol, molasses, bagasse, pressmud, power cogeneration should be equally shared with cane growers. They demanded implementation of the recommendations of the National Commission on Farmers, which suggested that the support prices of crops should be estimated at 50% over the cost of production. Just as the government employee dearness allowances are adjusted as per the movements price indices, the support prices of crops should also be adjusted accordingly, from time to time. The weightage of sugar in the wholesale price index, which is high, should be reasonably lowered, they said.

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