During 2010-11, maize was cultivated in 167 million hectares (ha) leading to a production of 860 million tonnes globally. During 2011, global maize area and production reached a historical high of 167 million ha and 860 million tonnes which is 21 per cent and 43 per cent higher in area and production compared to 2001. USA, China, Brazil, Mexico, Argentina and India together accounts for 75 per cent of the world maize production. The global demand for maize in the ethanol sector is strong enough to support the increased production. |
The major growing states that contribute to maize production in India are Karnataka (18 %), Andhra Pradesh (17 %), Maharashtra (11 %), Bihar (9 %), Rajasthan (7 %), Madhya Pradesh (6 %), Uttar Pradesh (6 %) Tamil Nadu (5 %), and Himachal Pradesh (3 %). Productivity of maize is highest in Tamil Nadu (4.68 tonnes/ ha) followed by Andhra Pradesh (3.52 tonnes / ha), Punjab (3.41 tonnes/ha) and Karnataka (2.42 tonnes/ha).
Around 11.44 lakh tonnes of maize is produced in Tamil Nadu annually. Maize is mainly grown in Perambalur, Dindigul, Coimbatore, Salem, Erode, Virudhunagar, Villupuram, Theni, Tiruchirapalli and Tirunelveli districts. These districts together contribute 90 per cent of the total area and production of maize in Tamil Nadu
A major shift in maize cultivation has been observed in recent years. Shorter duration, less cost of cultivation, less water requirement and less risk compared to other crops are the causes for the shift towards maize cultivation in the state. We can expect the same trend during this season also. Trade sources report that this year the arrivals from Tamil Nadu will start only by end of December. Tamil Nadu poultry firms are now procuring maize from Karnataka and Andhra Pradesh. Poultry firms are not in a position to hold stocks since they expect a bulk crop from Tamil Nadu from December end.
Good crop arrivals in major growing states and expected export and domestic demand will keep the price to rule steady till December end. Soon after arrivals, poultry firms will procure the harvested maize to build their stocks for the forthcoming months. Hence there are lesser chances for the prices to decline much. Trade sources inform that there will be supply crunch after March and the price may go above Rs.1200/quintal since the demand for maize will exceed the supply.
Farmers are interested to know whether the harvested produce could be sold immediately or stored for some time. To answer their queries and to guide them in taking a right decision, Domestic and Export Market Intelligence Cell functioning in Centre for Agricultural Rural Development Studies, Tamil Nadu Agricultural University analysed the monthly prices that prevailed in Udumalpet market for the past fifteen years. The results indicated that after December 2011 to April, 2012 the price may rule around Rs.1,050-1,100 per quintal. After April, 2012 the prices are expected to increase above Rs.1200.
Hence farmers, who can store the produce, are recommended to store up to April, 2012 and sell the same. If not possible the produce could be sold immediately upon harvest since the prices are not likely to increase upto end of March, 2012.
For further details contact:
Domestic and Export Market Intelligence Cell
Centre for Agricultural and Rural Development Studies
Tamil Nadu Agricultural University
Coimbatore-641 003, Phone: 0422-2431405
For Technical Details please contact:
Dr.G. Nallathambi
Professor (Maize Breeding)
Centre for Plant Breeding and Genetics
Tamil Nadu Agricultural University
Coimbatore-641 003, Phone: 0422-2450507
Cell no: 9486913279
NEW DELHI: The Agriculture Ministry has asked Dow Chemicals' Indian subsidiary to explain why the registration certificates granted to four chemicals produced by it should not be cancelled. This is a follow-up to the government's decision to blacklist Dow Agro Sciences India for five years, for bribing government officials to fast-track the process of registering three pesticides.
The show-cause notices were issued by the department of agriculture and cooperation on Wednesday, with the company given 15 days to file its reply.
" Dow Agro Sciences India Pvt Ltd., Mumbai (formerly known as De-Nocil Crop Protection Ltd), is hereby required to show cause within 15 days of receipt of this notice why the Certificates of Registration issued to the company under section 9(3) of the Insecticides Act, 1968, for the above mentioned products (Acetamiprid Technical-Pride, Acetampirid 20% SP Formulation, Chlorpyriphos 10 Granules (Dursban 10G) and Nurelle/Nurelle D/Nurelle D-505) should not be cancelled by the central Government in exercise of powers under section 27(2) of the Insecticides Act, 1968,'' the notice said.
A senior company official, when contacted, declined to comment, saying that they had not yet received the show-cause notice. "We have not received show-cause notice or any other communication from the Ministry of Agriculture. Hence it may not be possible to comment," Vice-President (Corporate Affairs) Rakesh Chitkara said.
The show-cause notice give a brief background of the case, and then proceeds to highlight the factors which prompted the ministry to go in for such a step.
The ministry had on September 16 last year blacklisted Dow Agro Sciences for five years for bribing government officials to expedite registration of three pesticides in the country. The bribery case had earlier been investigated by the CBI, which had then forwarded the outcome of its probe to the ministry for necessary action. CBI, after undertaking a thorough probe in the case, held the Mumbai-based Indian arm of Dow Chemicals guilty of bribing a senior Government employee and his aides, and had recommended that the firm be blacklisted for pursuing corrupt practices.
Taking cognisance of the CBI recommendation, the ministry had on June 22 last year served a notice on the company asking it to show-cause as to why it should not be blacklisted for indulging in unethical practices. The three pesticides were identified as Dursban 10G, Nurelle-D and Pride.
The details of the bribes paid by Dow Agro Sciences have been mentioned in the chargesheet filed by CBI in the case. The charge sheet was filed on the basis of information furnished by the US authorities to the Indian Government in response to a letter rogatory, a formal request from a court to a foreign court for judicial assistance.
"An investigation conducted by the CBI has established that Dow Agro Sciences paid illegal gratification and extended pecuniary advantages for expediting registration of its products Acetamiprid Technical (Pride) and its 20% SP Formulations, Chlorpyriphos 50% + Cypermethrin 5% EC (Nurelle) and Chlorpyriphos 10% Granules (Dursban 10G) under the Insecticides Act, 1968," the show-cause notice issued by the ministry on Wednesday said.
"Agro Pack, a product formulator of the company facilitated the payment of illegal gratification by accumulating funds in their books by loading bogus incidental charges in their bills placed on De-Nocil and raised fund for bribing the officials of the Registration Committee by mutual agreement with the company with the approval of the managing director. A charge sheet has been filed in the court of Secial Judge, at Ambala by the CBI against RL Rajak, former Plant Protection Adviser to the government of India and Satybro to Banerjee, consultant appointed by De-Nocil under the Prevention of Corruption Act, 1988 and the court had taken cognisance of the offences," the notice added.
The CBI had also informed that investigation against Kevin Eden, the then managing director of De-Nocil,is continuing.
The show-cause notices were issued by the department of agriculture and cooperation on Wednesday, with the company given 15 days to file its reply.
" Dow Agro Sciences India Pvt Ltd., Mumbai (formerly known as De-Nocil Crop Protection Ltd), is hereby required to show cause within 15 days of receipt of this notice why the Certificates of Registration issued to the company under section 9(3) of the Insecticides Act, 1968, for the above mentioned products (Acetamiprid Technical-Pride, Acetampirid 20% SP Formulation, Chlorpyriphos 10 Granules (Dursban 10G) and Nurelle/Nurelle D/Nurelle D-505) should not be cancelled by the central Government in exercise of powers under section 27(2) of the Insecticides Act, 1968,'' the notice said.
A senior company official, when contacted, declined to comment, saying that they had not yet received the show-cause notice. "We have not received show-cause notice or any other communication from the Ministry of Agriculture. Hence it may not be possible to comment," Vice-President (Corporate Affairs) Rakesh Chitkara said.
The show-cause notice give a brief background of the case, and then proceeds to highlight the factors which prompted the ministry to go in for such a step.
The ministry had on September 16 last year blacklisted Dow Agro Sciences for five years for bribing government officials to expedite registration of three pesticides in the country. The bribery case had earlier been investigated by the CBI, which had then forwarded the outcome of its probe to the ministry for necessary action. CBI, after undertaking a thorough probe in the case, held the Mumbai-based Indian arm of Dow Chemicals guilty of bribing a senior Government employee and his aides, and had recommended that the firm be blacklisted for pursuing corrupt practices.
Taking cognisance of the CBI recommendation, the ministry had on June 22 last year served a notice on the company asking it to show-cause as to why it should not be blacklisted for indulging in unethical practices. The three pesticides were identified as Dursban 10G, Nurelle-D and Pride.
The details of the bribes paid by Dow Agro Sciences have been mentioned in the chargesheet filed by CBI in the case. The charge sheet was filed on the basis of information furnished by the US authorities to the Indian Government in response to a letter rogatory, a formal request from a court to a foreign court for judicial assistance.
"An investigation conducted by the CBI has established that Dow Agro Sciences paid illegal gratification and extended pecuniary advantages for expediting registration of its products Acetamiprid Technical (Pride) and its 20% SP Formulations, Chlorpyriphos 50% + Cypermethrin 5% EC (Nurelle) and Chlorpyriphos 10% Granules (Dursban 10G) under the Insecticides Act, 1968," the show-cause notice issued by the ministry on Wednesday said.
"Agro Pack, a product formulator of the company facilitated the payment of illegal gratification by accumulating funds in their books by loading bogus incidental charges in their bills placed on De-Nocil and raised fund for bribing the officials of the Registration Committee by mutual agreement with the company with the approval of the managing director. A charge sheet has been filed in the court of Secial Judge, at Ambala by the CBI against RL Rajak, former Plant Protection Adviser to the government of India and Satybro to Banerjee, consultant appointed by De-Nocil under the Prevention of Corruption Act, 1988 and the court had taken cognisance of the offences," the notice added.
The CBI had also informed that investigation against Kevin Eden, the then managing director of De-Nocil,is continuing.
Dehra Dun, May 29 (PTI) To address the widespread wastage of horticulture crops, Union Minister of State for Food Processing and Agriculture Harish Rawat today said the Centre would soon launch ''food processing national mission''.
"For addressing the issues related to widespread wastages and losses of horticulture crops, we will now launch the food processing national mission," Rawat said at a national seminar on Horti Business Linking Farmers with Market at ONGC''s auditorium here.
Expressing concern that the growth of processing of the fruits is hovering around 3-3.5 per cent only in the country, Rawat said under the mission 2025, the centre would increase its growth to 25 percent. He also expressed concern over the 30 to 40 per cent of losses and wastages of horticulture crops in this regard.
On the national policy for farmers, he said the stress is being given on the convergence so that farmers can get better price and there is value addition to the crop.
He also expressed concern over the fast dwindling sizes of the farm holdings saying big infrastructure projects were responsible for it. In this regard, he called for following the Nehruvian model where the late Prime Minister Jawahar Lal Nehru had said "everything can wait but not agriculture."
He said in the next 12th plan efforts are being made to spend more on agriculture research programmes where the country is currently spending only 0.5 per cent of the GDP.
Rawat also stressed the need to bring the research works from laboratories to land in order to boost the agriculture sector.
"For addressing the issues related to widespread wastages and losses of horticulture crops, we will now launch the food processing national mission," Rawat said at a national seminar on Horti Business Linking Farmers with Market at ONGC''s auditorium here.
Expressing concern that the growth of processing of the fruits is hovering around 3-3.5 per cent only in the country, Rawat said under the mission 2025, the centre would increase its growth to 25 percent. He also expressed concern over the 30 to 40 per cent of losses and wastages of horticulture crops in this regard.
On the national policy for farmers, he said the stress is being given on the convergence so that farmers can get better price and there is value addition to the crop.
He also expressed concern over the fast dwindling sizes of the farm holdings saying big infrastructure projects were responsible for it. In this regard, he called for following the Nehruvian model where the late Prime Minister Jawahar Lal Nehru had said "everything can wait but not agriculture."
He said in the next 12th plan efforts are being made to spend more on agriculture research programmes where the country is currently spending only 0.5 per cent of the GDP.
Rawat also stressed the need to bring the research works from laboratories to land in order to boost the agriculture sector.
Ranchi: A team of experts from the Planning Commission is in the city to study the ground realities and prepare a report on improvement of agriculture in Maoist-hit and tribal areas of the country.
The committee, headed by former deputy director general of Indian Council for Agricultural Research (ICAR) C Prasad, will be in the city for two days beginning Sunday. During the stay, the panel members interact with farmers and representatives of Ramakrishna Mission and other NGOs that have been working for improvement of farming techniques in drought-prone areas which have climatic and geographical condition similar to Jharkhand.
"We have been assigned the task of preparing an action plan for improvement of agriculture in the country. Over the next two months, we will visit coastal regions, northeast and Jammu & Kashmir," said Prasad. Everywhere, the team will interact with the farmers and the NGOs to get inputs to prepare the report.
Prasad, who visited almost every state of the country and interacted with farmers and experts, said the main problem behind agricultural backwardness was mismanagement.
"If one goes through the report, it becomes clear that more than 50 per cent of the funds are not spent. We will try to make a report that will deal with the mismanagement for desired growth," said Prasad.
The team will also give emphasis on development of those 150 districts of the state which have been categorized as difficult.
"These 150 districts have peculiar problems because of social and geographical problems. We will give special emphasis on development of these districts," Prasad added.
The committee, headed by former deputy director general of Indian Council for Agricultural Research (ICAR) C Prasad, will be in the city for two days beginning Sunday. During the stay, the panel members interact with farmers and representatives of Ramakrishna Mission and other NGOs that have been working for improvement of farming techniques in drought-prone areas which have climatic and geographical condition similar to Jharkhand.
"We have been assigned the task of preparing an action plan for improvement of agriculture in the country. Over the next two months, we will visit coastal regions, northeast and Jammu & Kashmir," said Prasad. Everywhere, the team will interact with the farmers and the NGOs to get inputs to prepare the report.
Prasad, who visited almost every state of the country and interacted with farmers and experts, said the main problem behind agricultural backwardness was mismanagement.
"If one goes through the report, it becomes clear that more than 50 per cent of the funds are not spent. We will try to make a report that will deal with the mismanagement for desired growth," said Prasad.
The team will also give emphasis on development of those 150 districts of the state which have been categorized as difficult.
"These 150 districts have peculiar problems because of social and geographical problems. We will give special emphasis on development of these districts," Prasad added.
Inquiry Finds Diversion May Have Happened For Decades
Chennai: The CBI is investigating the involvement of some state agriculture department officials and the management of Indian Potash Limited (IPL) in the multicrore fertilizer scam,which came to light in Karaikal in 2009.
The agriculture department exposed the large-scale diversion of heavily subsidised potassium chloride to match and fire-cracker industries in Tamil Nadu in September 2009.The case was subsequently handed over to the CBIs Economic Offences Wing (EOW).The EOW has found that some of the industries using the illegally procured potash were more than 20 years old,suggesting that diversion had been happening for decades.
Potassium chloride is imported from countries like Israel by the IPL,a private company designated by the Union agriculture ministry.It is supplied at a subsided rate to marginal farmers.The ministry had been supplying the fertilizer to farmers at a rate of Rs 4,500 per metric tonne,even when the price in the international market was more than Rs 30,000 per metric tonne.The IPL claimed the subsidy from the government after getting a certificate from the agriculture department,saying that the fertilizer had been supplied to farmers.
Unscrupulous elements found a business opportunity and started diverting the fertilizer to matches and fireworks industries.Agriculture
department officials at the block level place the fertilizer requirement order for each block and the chemical is imported as per this requirement.When we checked the supply list of certified fertilizer dealers,we found that many farmers names were fake, a senior CBI officer said.
The inflated fertilizer requirement indicates the involvement of some agriculture department officials,the CBI said.The role of the IPL is also under the scanner as many procedures in import and stock management were allegedly violated.The nexus was so strong that in some cases the fertilizer was sent straight to the industries from Tuticorin.None of these companies had ever purchased the raw material legally.We have records of their purchases for more than 10 years.When a company wants to set up an industry that needs a licence for explosives,its application to the collector must mention where they are going to source their raw materials from.We do not know what these companies had mentioned in their application.All these industries were procuring diverted fertilizer, the official added.
The CBI had arrested four persons,including directors of some industries and dealers in relation to this case.Many got anticipatory bail.In 2008,the state had unearthed a similar scam after they found 3,153 tonnes of potash missing from Chennai port.The potash was diverted to industries in Chennai.This case is being investigated by CB-CID.
Manure Mafia
The government has designated Indian Potash Limited,to import potash and distribute it to farmers at a highly subsidised rate There are no factories manufacturing potassium chloride in India,a key ingredient in matches and fireworks factories The CBI found that none of the factories,caught for diversion of the fertilizers had imported the chemical or bought it from licensed importers This is the third fertilizer scam to hit the state.Smuggling of Chinese fertilizer to Tamil Nadu was detected earlier
-K Praveen Kumar TNN
Thanks: Times of india .
Chennai: The CBI is investigating the involvement of some state agriculture department officials and the management of Indian Potash Limited (IPL) in the multicrore fertilizer scam,which came to light in Karaikal in 2009.
The agriculture department exposed the large-scale diversion of heavily subsidised potassium chloride to match and fire-cracker industries in Tamil Nadu in September 2009.The case was subsequently handed over to the CBIs Economic Offences Wing (EOW).The EOW has found that some of the industries using the illegally procured potash were more than 20 years old,suggesting that diversion had been happening for decades.
Potassium chloride is imported from countries like Israel by the IPL,a private company designated by the Union agriculture ministry.It is supplied at a subsided rate to marginal farmers.The ministry had been supplying the fertilizer to farmers at a rate of Rs 4,500 per metric tonne,even when the price in the international market was more than Rs 30,000 per metric tonne.The IPL claimed the subsidy from the government after getting a certificate from the agriculture department,saying that the fertilizer had been supplied to farmers.
Unscrupulous elements found a business opportunity and started diverting the fertilizer to matches and fireworks industries.Agriculture
department officials at the block level place the fertilizer requirement order for each block and the chemical is imported as per this requirement.When we checked the supply list of certified fertilizer dealers,we found that many farmers names were fake, a senior CBI officer said.
The inflated fertilizer requirement indicates the involvement of some agriculture department officials,the CBI said.The role of the IPL is also under the scanner as many procedures in import and stock management were allegedly violated.The nexus was so strong that in some cases the fertilizer was sent straight to the industries from Tuticorin.None of these companies had ever purchased the raw material legally.We have records of their purchases for more than 10 years.When a company wants to set up an industry that needs a licence for explosives,its application to the collector must mention where they are going to source their raw materials from.We do not know what these companies had mentioned in their application.All these industries were procuring diverted fertilizer, the official added.
The CBI had arrested four persons,including directors of some industries and dealers in relation to this case.Many got anticipatory bail.In 2008,the state had unearthed a similar scam after they found 3,153 tonnes of potash missing from Chennai port.The potash was diverted to industries in Chennai.This case is being investigated by CB-CID.
Manure Mafia
The government has designated Indian Potash Limited,to import potash and distribute it to farmers at a highly subsidised rate There are no factories manufacturing potassium chloride in India,a key ingredient in matches and fireworks factories The CBI found that none of the factories,caught for diversion of the fertilizers had imported the chemical or bought it from licensed importers This is the third fertilizer scam to hit the state.Smuggling of Chinese fertilizer to Tamil Nadu was detected earlier
-K Praveen Kumar TNN
Thanks: Times of india .
The mystery of sugar trade has got more intriguing. London sugar prices were down from the high of $767 to $500 in less than 45 days. Initial estimates of import demand of nearly 7 million tonnes (mt) from India in 2009-10 and then its downward revision by 3.5 mt surprised both domestic and international players. So has the sudden surge in sugar available domestically. The Indian wholesale price of sugar have fallen 34% from Rs 39 a kg to Rs 26 a kg in less than two months.
The stakeholders are now wondering if there are still more unknowns. Is it a magic or a miracle or a manipulation or a mirage or a material change of ground realities of supply demand matrix? Barring the Uttar Pradesh chief minister, all others have been proven wrong. She had maintained that there would be enough sugarcane in the state, and actually prohibited entry of imported raw sugar till end of cane-crushing season.
It must be remembered that the world takes a serious note of government statements. If any government declares that production is low, global prices will rise and vice versa. Indian sugar production was 14.7 mt in 2008-09.
In 2009-10, India projected production of 16 mt (October ‘09-September ‘10) against demand of 23 mt, with carry-in stocks of three million tonnes. Since February ‘09, sensing severe shortages from October ‘09, the Centre allowed duty free import of whites and raws both by the mills and traders, banned futures, increased levy quota from 10% to 20%, enforced stock limits on bulk consumers, enhanced fair and remunerative prices (FRP), proclaimed that farmers needed higher prices for lower sugarcane output, enforced weekly release quota, raided the premises of brokers and stockist, monitored closely the importers, and extended imports till Jan ‘11.
These actions reflect the panic among policymakers. The Opposition and ruling party urged the Centre to arrange bulk imports through public sector undertakings and to extend subsidy. The food ministry convened numerous meetings with trade to push for higher imports. These actions sent very bullish signals to the international trade, and white sugar the prices climbed from $350 to $767 between April ‘09 and February ‘10, while raw sugar values traded in range of 13-30 cent a pound.
In March ‘10, state sugar federations from UP, Maharashtra and south India reported large cane yields and improved sucrose recovery — a jump 3-3.5 mt in production. Thus, sugar production estimates were revised up from 16 mt to 18 mt and carry-in was revised from 3 mt to 4.5 mt. This forced local and international prices to correct.
Even carry in stocks, which can be easily and physically verified, were misreported by more than a million tonne. Will total supply still exceed 18-19 mt? Neither the government nor the cane commissioners know what is happening on the ground.
The November ‘09 US Department of Agriculture report — indicating production at 17.3 mt (including 0.4 mt of gur), carry-in of 3.7 mt and demand at 23.5 mt — conforms more to the local realities than the current projections of India. However, India continued to hammer its own pessimistic output estimates.
he government, farmers and funds are the major beneficiaries of the revised estimates, while millers, sellers, buyers and all others who are involved in physical distribution channels are on the losing side. Millers had agreed to pay as much as Rs 260-280 per quintal to farmers for sugarcane and now wholesale prices have declined to unremunerative levels of Rs 26-27 a kg.
Stock prices of all major sugar producers have dipped — indicating potential fall in profits. Millers could default in payment to farmers if pushed beyond a limit. International sellers who sold white sugar above $600 plus cost & freight (c&f) and raws above $500 plus c&f fear default/deferments by buyers, if domestic price average Rs 34-35 a kg in the April-May ‘10.
At the end of March, when price of whites were hovering around $560-570 (c&f) for whites and $450-460 for raws, there were no buyers. At domestic price of Rs 26-27 a kg, the contracted 3 mt of sugar is unlikely to arrive. Since international prices have tanked, industry is bound to seek the protection of import duty. A crisis like situation might re-emerge in June-November ‘10.
Indian demand has a long way to go after crushing mills down their shutters in April/May ‘10. Such a violent volatility caused by erroneous estimates need immediate actions such as abolition of weekly quota and removal of limits on bulk consumers on storage period. This should stabilise the wholesale price at Rs 34/35 kg.
If the prices continue to tumble below Rs 27/28 kg, millers will be forced to book huge losses, which will jeopardise the interest of farmers and the financial institutions. Importers will shun taking any forward positions even at lower values. Their outstanding contracts could face default/litigation /compensation.
It will then be too late for the government to wake up for controlling the imminent rise of sugar prices again during the festival season. It is time to take a call for the gross mismanagement of forecasting the supply side and balance equitably the interests all involved in the sugar tangle. The key lesson out of this episode is that accurate forecasting of crop numbers is very critical or else it can be economically and politically a disaster.
The stakeholders are now wondering if there are still more unknowns. Is it a magic or a miracle or a manipulation or a mirage or a material change of ground realities of supply demand matrix? Barring the Uttar Pradesh chief minister, all others have been proven wrong. She had maintained that there would be enough sugarcane in the state, and actually prohibited entry of imported raw sugar till end of cane-crushing season.
It must be remembered that the world takes a serious note of government statements. If any government declares that production is low, global prices will rise and vice versa. Indian sugar production was 14.7 mt in 2008-09.
In 2009-10, India projected production of 16 mt (October ‘09-September ‘10) against demand of 23 mt, with carry-in stocks of three million tonnes. Since February ‘09, sensing severe shortages from October ‘09, the Centre allowed duty free import of whites and raws both by the mills and traders, banned futures, increased levy quota from 10% to 20%, enforced stock limits on bulk consumers, enhanced fair and remunerative prices (FRP), proclaimed that farmers needed higher prices for lower sugarcane output, enforced weekly release quota, raided the premises of brokers and stockist, monitored closely the importers, and extended imports till Jan ‘11.
These actions reflect the panic among policymakers. The Opposition and ruling party urged the Centre to arrange bulk imports through public sector undertakings and to extend subsidy. The food ministry convened numerous meetings with trade to push for higher imports. These actions sent very bullish signals to the international trade, and white sugar the prices climbed from $350 to $767 between April ‘09 and February ‘10, while raw sugar values traded in range of 13-30 cent a pound.
In March ‘10, state sugar federations from UP, Maharashtra and south India reported large cane yields and improved sucrose recovery — a jump 3-3.5 mt in production. Thus, sugar production estimates were revised up from 16 mt to 18 mt and carry-in was revised from 3 mt to 4.5 mt. This forced local and international prices to correct.
Even carry in stocks, which can be easily and physically verified, were misreported by more than a million tonne. Will total supply still exceed 18-19 mt? Neither the government nor the cane commissioners know what is happening on the ground.
The November ‘09 US Department of Agriculture report — indicating production at 17.3 mt (including 0.4 mt of gur), carry-in of 3.7 mt and demand at 23.5 mt — conforms more to the local realities than the current projections of India. However, India continued to hammer its own pessimistic output estimates.
he government, farmers and funds are the major beneficiaries of the revised estimates, while millers, sellers, buyers and all others who are involved in physical distribution channels are on the losing side. Millers had agreed to pay as much as Rs 260-280 per quintal to farmers for sugarcane and now wholesale prices have declined to unremunerative levels of Rs 26-27 a kg.
Stock prices of all major sugar producers have dipped — indicating potential fall in profits. Millers could default in payment to farmers if pushed beyond a limit. International sellers who sold white sugar above $600 plus cost & freight (c&f) and raws above $500 plus c&f fear default/deferments by buyers, if domestic price average Rs 34-35 a kg in the April-May ‘10.
At the end of March, when price of whites were hovering around $560-570 (c&f) for whites and $450-460 for raws, there were no buyers. At domestic price of Rs 26-27 a kg, the contracted 3 mt of sugar is unlikely to arrive. Since international prices have tanked, industry is bound to seek the protection of import duty. A crisis like situation might re-emerge in June-November ‘10.
Indian demand has a long way to go after crushing mills down their shutters in April/May ‘10. Such a violent volatility caused by erroneous estimates need immediate actions such as abolition of weekly quota and removal of limits on bulk consumers on storage period. This should stabilise the wholesale price at Rs 34/35 kg.
If the prices continue to tumble below Rs 27/28 kg, millers will be forced to book huge losses, which will jeopardise the interest of farmers and the financial institutions. Importers will shun taking any forward positions even at lower values. Their outstanding contracts could face default/litigation /compensation.
It will then be too late for the government to wake up for controlling the imminent rise of sugar prices again during the festival season. It is time to take a call for the gross mismanagement of forecasting the supply side and balance equitably the interests all involved in the sugar tangle. The key lesson out of this episode is that accurate forecasting of crop numbers is very critical or else it can be economically and politically a disaster.
April 28 (Bloomberg) -- U.S. exporters sold 115,000 metric tons of corn to China, its first major sale of the grain to the world’s most-populous nation since 2001, according to U.S. Department of Agriculture data.
The corn is for delivery in the year that ends on Aug. 31, the USDA said today in a statement. The department, which discloses all export-sales activity involving more than 100,000 tons of a commodity in a single day, last reported a major Chinese corn sale on Dec. 11, 2001, a purchase that was later canceled.
Snow and cold weather has delayed corn planting in parts of northeast China, the agriculture ministry said yesterday. The China National Grain and Oils Information Center last week said the Asian nation may increase imports should international prices remain below domestic levels.
“China’s weather has been a little cool, so they’re behind on planting,” said Jerod Leman, a broker at Wellington Commodities in Carmel, Indiana. The sale is “a big story” for corn prices, he said.
Corn futures for July delivery rose 10.50 cents, or 3 percent, to $3.6425 a bushel at 11:19 a.m. on the Chicago Board of Trade. Before today, the price was down 15 percent this year, partly because of rising stockpiles in the U.S.
China, the second-largest corn producer, will harvest 155 million tons of the grain, down from a record 165.9 million a year ago, the USDA said in a report April 9. Inventories before this year’s harvest will reach 49.12 million tons, down from 53.17 million a year earlier, the USDA said.
The U.S. is the world’s biggest grower and exporter of corn.
--With assistance from Tony C. Dreibus in Chicago.
--Editors: Daniel Enoch, Michael Arndt.
To contact the reporter on this story: Alan Bjerga in Washington at abjerga@bloomberg.net.
To contact the editor responsible for this story: Steve Stroth at sstroth@bloomberg.net
The corn is for delivery in the year that ends on Aug. 31, the USDA said today in a statement. The department, which discloses all export-sales activity involving more than 100,000 tons of a commodity in a single day, last reported a major Chinese corn sale on Dec. 11, 2001, a purchase that was later canceled.
Snow and cold weather has delayed corn planting in parts of northeast China, the agriculture ministry said yesterday. The China National Grain and Oils Information Center last week said the Asian nation may increase imports should international prices remain below domestic levels.
“China’s weather has been a little cool, so they’re behind on planting,” said Jerod Leman, a broker at Wellington Commodities in Carmel, Indiana. The sale is “a big story” for corn prices, he said.
Corn futures for July delivery rose 10.50 cents, or 3 percent, to $3.6425 a bushel at 11:19 a.m. on the Chicago Board of Trade. Before today, the price was down 15 percent this year, partly because of rising stockpiles in the U.S.
China, the second-largest corn producer, will harvest 155 million tons of the grain, down from a record 165.9 million a year ago, the USDA said in a report April 9. Inventories before this year’s harvest will reach 49.12 million tons, down from 53.17 million a year earlier, the USDA said.
The U.S. is the world’s biggest grower and exporter of corn.
--With assistance from Tony C. Dreibus in Chicago.
--Editors: Daniel Enoch, Michael Arndt.
To contact the reporter on this story: Alan Bjerga in Washington at abjerga@bloomberg.net.
To contact the editor responsible for this story: Steve Stroth at sstroth@bloomberg.net
The state’s annual credit plan (ACP) prepared by the National Bank for Agriculture and Rural Development (Nabad) for the current fiscal would be Rs 37,000 crore.
Compared to the last fiscal’s ACP worth Rs 21,127 crore, the increase is tremendous around 75 per cent, which tantamount to saying that the state’s credit absorption capacity has substantially increased.
While the average achievement on the credit-giving front under ACP in the last few fiscals has been around 70 per cent, the sheer increase in the volume of ACP for the current fiscal by itself would help in pumping in a substantial chunk of money in the priority sector.
The priority sector consists of loaning activities by the Nabard, and itaccounts for credit worth Rs 22,159 crore during the current fiscal — Rs 11,968 crore for crop loan, Rs 3,899 crore for term credit in agriculture and allied activities, besides Rs 6,290 crore for non-farm sector, agro and food processing, as well as other priority sector activities, including micro-financing for the self-help groups (SHGs).
The remaining Rs 15,000 crore would be disbursed by commercial banks.
Nabard chairman U C Sarnagi, through video conferencing from the bank’s headquarters in Mumbai, said on Friday that Nabard has prioritized agriculture loan, micro-financing to promote income generation activities through SHGs, and infrastructure development through its rural infrastructure development fund (RIDF) schemes for the state. “The focus is on increasing road connectivity in the state’s flood-prone zones covering health centres, schools and bridges,” Sarangi said.
The bank’s Patna regional chief general manager (CGM) M M Mishra said that Nabard estimated increased “potential for credit deployment under priority sector since cooperatives have become functional.” The elections to the Primary Agriculture Credit Societies (PACS) have already been completed.
According to him, Nabard has sanctioned Rs 877 crore for RIDF during the last fiscal and managed to utilize Rs 542 crore. He said that 1.36 lakh SHGs had credit linkages through the promotional assistance of Nabard, while 18,354 new SHGs were added in the last fiscal. Besides, clubs of small farmers, including of sharecroppers, and other groups of landless people were being formed to facilitate and provide credit linkages to them.
Thanks: The Times Of india
Compared to the last fiscal’s ACP worth Rs 21,127 crore, the increase is tremendous around 75 per cent, which tantamount to saying that the state’s credit absorption capacity has substantially increased.
While the average achievement on the credit-giving front under ACP in the last few fiscals has been around 70 per cent, the sheer increase in the volume of ACP for the current fiscal by itself would help in pumping in a substantial chunk of money in the priority sector.
The priority sector consists of loaning activities by the Nabard, and itaccounts for credit worth Rs 22,159 crore during the current fiscal — Rs 11,968 crore for crop loan, Rs 3,899 crore for term credit in agriculture and allied activities, besides Rs 6,290 crore for non-farm sector, agro and food processing, as well as other priority sector activities, including micro-financing for the self-help groups (SHGs).
The remaining Rs 15,000 crore would be disbursed by commercial banks.
Nabard chairman U C Sarnagi, through video conferencing from the bank’s headquarters in Mumbai, said on Friday that Nabard has prioritized agriculture loan, micro-financing to promote income generation activities through SHGs, and infrastructure development through its rural infrastructure development fund (RIDF) schemes for the state. “The focus is on increasing road connectivity in the state’s flood-prone zones covering health centres, schools and bridges,” Sarangi said.
The bank’s Patna regional chief general manager (CGM) M M Mishra said that Nabard estimated increased “potential for credit deployment under priority sector since cooperatives have become functional.” The elections to the Primary Agriculture Credit Societies (PACS) have already been completed.
According to him, Nabard has sanctioned Rs 877 crore for RIDF during the last fiscal and managed to utilize Rs 542 crore. He said that 1.36 lakh SHGs had credit linkages through the promotional assistance of Nabard, while 18,354 new SHGs were added in the last fiscal. Besides, clubs of small farmers, including of sharecroppers, and other groups of landless people were being formed to facilitate and provide credit linkages to them.
Thanks: The Times Of india
Tamil Nadu Agricultural University has established a gene bank on its premises at a cost of Rs.1.2 crore. It has been named after K. Ramiah, the first Indian Paddy Specialist, and the Founder Director of Central Rice Research Institute, Cuttack.
Inaugurating the state-of-the-art facility, Vice-Chancellor of the university P. Murugesa Boopathi said it was the first of its kind in any State Agricultural University in the county. The bank was meant for conservation of genetic resources. Germplasm collection of cultivars, land races and wild species would be maintained.
Sponsored by the Indian Council of Agricultural Research, the gene bank has been set up in the newly incepted Department of Plant Genetic Resources of the university.
Pointing out the salient features of the bank, Director of the Centre for Plant Breeding and Genetics K. Thiyagarajan said it had 3,000 cubic feet of cold storage space for medium and long term storage of plant genetic resources. “It is planned to store nearly 50,000 germplasm entries apart from commercially cultivated varieties of crops, he said.”
Head of the Department of Plant Genetic Resources P. Shanmugasundaram said the gene bank would also be equipped with facilities to characterise and document germplasm resources. It was also planned to create an Internet-based database of the university's germplasm resources to promote exchange and utilisation among plant breeders and crop scientists.
(The author is Chief Economist, CRISIL)
The forecast of normal rainfall is the first of the two long-range forecast for the south-west monsoon. The next update will be issued in June. The rainfall during June-September is expected to be 98% of the long-period average. This undoubtedly is the first bit of good news on the monsoon front.
An expectation of normal monsoon will help tame inflationary pressures that are currently rife. If monsoons turn out to be normal as predicted, agricultural output should go up by around 5.5% in 2010-11. This will further boost overall growth as well. Moreover it will be critical for recharging the depleted ground water.
Normal monsoons will be good news for the nation as a whole but states with low irrigation coverage like Maharashtra, Rajasthan, Madhya Pradesh and Orissa will benefit the most. Many of these states not only have low irrigation cover but are also vulnerable as they have larger share of agriculture in the state GDP (Maharashtra is an exception) and high levels of rural poverty. It needs not emphasis that a normal monsoon is critical in 2009-10.
Beyond that, one should not read too much into the forecast of normal monsoon.
And this cannot be a cause for complacency. Last year too, in April 2009, the monsoons were predicted to be normal at 96 per cent of the long-period average. The cheer that this brought was short lived as towards the end of July and August many parts of the country witnessed deficient to scanty rainfall. The monsoon season in 2009-10 ended with a cumulative deficiency of 23 per cent. This led to a sharp dip in agricultural output and flare up of food prices. Food inflation continues to be persistently high at a level of over 17 per cent.
Even if the overall monsoons remain normal, what matter for agricultural production is its geographical distribution and timeliness which is difficult to predict at this juncture. From an agricultural perspective what is worrying is the increasing frequency of monsoon failures/droughts and increasing volatility in agricultural output in the last few years.
Monsoons are more of a risk to inflation and not so much to growth. There is increasing evidence that non-agricultural GDP growth is getting de-linked from agricultural performance. In 2004-05 and 2008-09 despite poor agricultural performance, non-agricultural GDP growth remained healthy at 9.5 and 7.8 per cent respectively.
In 2009-10, despite a drop in agricultural GDP, industrial GDP surged to over 9%. One major offset against the reduced employment opportunities in rural areas in drought years has been job creation through the National Rural Employment Guarantee Scheme. But a normal monsoon is extremely critical from taming the inflationary bout which started with food items and gradually spread & became generalised. All we can do at this juncture is to hope that IMD prediction comes true.
The forecast of normal rainfall is the first of the two long-range forecast for the south-west monsoon. The next update will be issued in June. The rainfall during June-September is expected to be 98% of the long-period average. This undoubtedly is the first bit of good news on the monsoon front.
An expectation of normal monsoon will help tame inflationary pressures that are currently rife. If monsoons turn out to be normal as predicted, agricultural output should go up by around 5.5% in 2010-11. This will further boost overall growth as well. Moreover it will be critical for recharging the depleted ground water.
Normal monsoons will be good news for the nation as a whole but states with low irrigation coverage like Maharashtra, Rajasthan, Madhya Pradesh and Orissa will benefit the most. Many of these states not only have low irrigation cover but are also vulnerable as they have larger share of agriculture in the state GDP (Maharashtra is an exception) and high levels of rural poverty. It needs not emphasis that a normal monsoon is critical in 2009-10.
Beyond that, one should not read too much into the forecast of normal monsoon.
And this cannot be a cause for complacency. Last year too, in April 2009, the monsoons were predicted to be normal at 96 per cent of the long-period average. The cheer that this brought was short lived as towards the end of July and August many parts of the country witnessed deficient to scanty rainfall. The monsoon season in 2009-10 ended with a cumulative deficiency of 23 per cent. This led to a sharp dip in agricultural output and flare up of food prices. Food inflation continues to be persistently high at a level of over 17 per cent.
Even if the overall monsoons remain normal, what matter for agricultural production is its geographical distribution and timeliness which is difficult to predict at this juncture. From an agricultural perspective what is worrying is the increasing frequency of monsoon failures/droughts and increasing volatility in agricultural output in the last few years.
Monsoons are more of a risk to inflation and not so much to growth. There is increasing evidence that non-agricultural GDP growth is getting de-linked from agricultural performance. In 2004-05 and 2008-09 despite poor agricultural performance, non-agricultural GDP growth remained healthy at 9.5 and 7.8 per cent respectively.
In 2009-10, despite a drop in agricultural GDP, industrial GDP surged to over 9%. One major offset against the reduced employment opportunities in rural areas in drought years has been job creation through the National Rural Employment Guarantee Scheme. But a normal monsoon is extremely critical from taming the inflationary bout which started with food items and gradually spread & became generalised. All we can do at this juncture is to hope that IMD prediction comes true.
At first glance, the vegetable patches in this north Indian village look no different from the many small, spare farms that dot the country. But up close, visitors can see some curious experiments: insect traps made with reusable plastic bags; bamboo poles helping bitter gourd grow bigger and straighter; and seedlings germinating from plastic trays under a fine net.
These are low-tech innovations, to be sure. But they are crucial to the goals of the benefactor - Wal-Mart - that supplied them.
Two years after Wal-Mart came to India, it is trying to do to agriculture here what it has done to industries around the world: change business models by using its hyper-efficient practices to improve productivity and speed the flow of goods.
Not everyone is happy about the company's presence here. Many Indian activists and policy makers abhor big-box retailing, fearing that it will drive India's millions of shopkeepers out of business. Some legislators are suspicious of the company's motives. The government still does not allow Wal-Mart and other foreign companies to sell directly to consumers.
But Wal-Mart is persisting because its effort in India is critical to its global growth strategy. Confronted with saturated markets in the United States and other developed countries, the company needs to establish a bigger presence in emerging markets, like India, where modern stores make up just 5 percent of the country's retail industry.
Establishing good relations with farmers is a centerpiece of the company's plans. Though Wal-Mart is pushing many of its traditional products in India, like clothes, electronics and home goods, perhaps none is as essential as food. Wal-Mart needs high-quality produce at low prices to attract customers in volume.
The challenges are significant. Buying and transporting vegetables and fruits are difficult tasks because India has millions of small-scale farmers and an agriculture system riddled with middlemen.
Here in Haider Nagar, in India's bread basket state of Punjab, farmers who supply vegetables to Wal-Mart say they like working with the company. It typically pays them 5 percent to 7 percent more than they earn from local wholesale markets, they said. And they don't have to spend money transporting produce because Wal-Mart picks it up from their fields.
Abdul Majid, who sells cucumbers to Wal-Mart, says his yields have risen about 25 percent since he started following farming advice about when to apply fertilizers and which kinds - more zinc, less potash - from the company and its partner, Bayer CropScience.
Mohammad Haneef, a farmer in a nearby village, said he had sold to two other companies before Wal-Mart came to town, but one shut down and the other cheated him and paid him late. Wal-Mart is much better, he said, but its buyers are picky, taking the best vegetables and leaving him with the inferior ones that he still has to truck to wholesale markets.
"You have to establish trust," he said in Hindi. "Wal-Mart has been paying on time. We would just like them to buy more."
For Wal-Mart, establishing an agricultural beachhead in India will not be easy. Many Indian companies have abandoned or significantly scaled back efforts to run supermarkets. Some companies grew too quickly and flamed out. But many others were undone by the numerous Gordian knots that hold back Indian agriculture: laws limit who can buy farmers' crops; 35 percent of fruits and vegetables are wasted because of inefficient transportation; and farmers earn too little to invest in their marginal farms.
"Anybody who says they can revolutionize retail in this country in a short period of time" is overestimating their abilities said R Gopalakrishnan, executive director of the Tata Group and chairman of Rallis India, a company that makes fertilizers, seeds and pesticides.
Wal-Mart is also limited by New Delhi's ban on foreign-owned retail chains that prevent it from selling directly to Indian consumers.
"Not having access to our own retail stores through our own investments is a serious impediment," said Raj Jain, who heads Wal-Mart's Indian operation. "How do you pay for that big back end if you are not going to have access to the front end?"
Right now Wal-Mart operates in India through a 50-50 joint venture with Bharti Enterprises, an Indian conglomerate that also owns the country's largest cell phone company. Their partnership, known as Bharti Wal-Mart, supplies retail stores that are fully owned by Bharti and runs a wholesale store that sells to shopkeepers, hotels and other businesses.
Wal-Mart officials wouldn't say how much money the company has invested in India, but its operation here is at the forefront of a second big push into emerging markets. In the 1990s, Wal-Mart set up shop in China, Mexico and Brazil and now has hundreds of stores there. By comparison, Bharti Wal-Mart has just one wholesale store and will soon open two more. It employs 800 people in India, and hopes to have 5,000 in three years.
In recent speeches senior Indian leaders have suggested that they would like to remove restrictions on the retail industry to help reduce food prices, which were up 20 percent in January compared with a year earlier. Last month, Prime Minister Manmohan Singh cited the need "to take a firm view on opening up the retail trade."
But even as senior leaders speak of more openness, regulators recently published a rule that would restrict wholesale companies like Bharti Wal-Mart from earning more than 25 percent of their revenue from sales to affiliated "group companies" - a term that is not clearly defined in the rules. A spokeswoman from Bharti Wal-Mart, Arti Singh, said the company was trying to find out what this meant.
Last year, a committee in the Indian parliament said the government should not allow any more wholesale stores because companies like Wal-Mart were using them as "camouflage for doing retail through back door." The legislators also asserted that foreign companies would raise their initial low prices after they had driven small retailers out of business.
Wal-Mart has not waited for Indian policy makers to effect changes. It has spent the last two years building relationships with farmers and suppliers, and setting up its supply system. It is building a big distribution center outside New Delhi to supply Bharti stores, which are branded Easy Day, in and around the capital.
Wal-Mart also has learned to adapt its operations to numerous challenges. For instance, because trucks move slowly on the country's congested roads, Wal-Mart's fruit and vegetable distribution center near Haider Nagar supplies retail stores only within 200 kilometers (124 miles) to keep produce fresh. By comparison, similar Wal-Mart facilities in China supply stores as far away as 400 kilometers.
But that means the company will have to set up more distribution centers with expensive power generators, making it more difficult to make money in India.
Still, Jain, who previously worked for Whirlpool and Unilever, was optimistic. He said the company would add more farmers and stores in Punjab and neighboring Haryana state, then begin expanding further.
This is "a controlled experiment," he said. "It will take some time to make it sustainable and economically viable. Then once that happens, we need to take it to some other geographies and prove the model."
Thanks: NDTV
BELLARY: The Farmers contact centres in Bellary district are in disarray. There are around 25 centres in the district, among which, 20 centres do not have their own building. The government pays a rent of Rs 1,200 to Rs 1,500 each month. These centres act as a link between farmer and government, but besides the distribution of seeds and fertilizers, there is nothing else going the farmers' way. These contact centres provide information to the farmers about new agricultural policies, crop protection and new agricultural methods. There are 17 touch screens in the district, of which six are malfunctioned and some unused.
Annually, the Centre grants Rs 10,000 to Rs 12,000 for the development of centres, but the amount is good enough only to clear electricity bills, phone and other bills. In Hampasagara of Hagaribommanhalli taluk, the construction of the centres at a cost of Rs 4.50 lakhs, have come to a standstill due to contract problems. Rupangudi, Thambralli villages still await the inauguration of the centres.
Thanks: The Times Of India
Annually, the Centre grants Rs 10,000 to Rs 12,000 for the development of centres, but the amount is good enough only to clear electricity bills, phone and other bills. In Hampasagara of Hagaribommanhalli taluk, the construction of the centres at a cost of Rs 4.50 lakhs, have come to a standstill due to contract problems. Rupangudi, Thambralli villages still await the inauguration of the centres.
Thanks: The Times Of India
The National Bank for Agriculture and Rural Development (Nabard), in a bid to step up its focus on the farm sector, plans to bring together about 10 lakh small and marginal farmers across the country in 2010-11 along the lines of the self-help group (SHG) model.
This will help farmers harness their collective bargaining power to access credit at competitive rates, improve productivity using quality inputs, and realise better price for their produce in the market, said Mr Umesh Chandra Sarangi, Chairman of Nabard.
The development bank, whose primary objective is to facilitate flow of credit for agriculture, rural infrastructure and rural development, and supervision of rural financial intermediaries, will organise joint liability groups (JLGs) comprising 7-10 farmers in the small and marginal category, he said.
"We have set a target of forming one lakh joint liability groups in the current financial year. About 10 lakh farmers will benefit by becoming members of the groups," said Mr Sarangi.
In the last couple of years, Nabard had organised around 30,000 JLGs across the country.
Pointing out that most of the farmers in India owned less than 2 acres of land, the Nabard chief said that by becoming a member of the JLG, small and marginal farmers who generally depend on informal sources of financing at usurious interest rates, can get credit from banks on competitive terms.
Ever since the SHG-Bank linkage programme was conceptualised and launched by Nabard in 1992, about 47 lakh self-help groups (as of March-end 2009), predominantly comprising poor women, have been able to access the formal banking sector in a sustainable and cost-effective manner.
By handling savings and internal lending, the SHGs have matured, acquired creditworthiness for themselves and earned the confidence of banks. As of March-end 2009, banks had an outstanding exposure of Rs 22680 crore to 42 lakh odd members of SHGs.
Nabard is not averse to setting up a bank provided this does not interfere with its primary mandate of facilitating flow of credit for agriculture, rural infrastructure and rural development, said Mr Sarangi.
In his reply to a question on whether Nabard would leverage its long-standing experience in rural lending to get a banking license from RBI, the Nabard chief said, "Without compromising our primary mandate, which is refinancing and supporting the needs of the agriculture sector in the country, we will not be averse to any new ideas."
Recently, Nabard appointed global management consultancy firm Boston Consulting Group (BCG) to prepare a report to restructure and diversify its operations to leverage its expertise in refinancing. The development bank is also seeking to implement a core banking solution.
Thanks: The Hindu Business Line
This will help farmers harness their collective bargaining power to access credit at competitive rates, improve productivity using quality inputs, and realise better price for their produce in the market, said Mr Umesh Chandra Sarangi, Chairman of Nabard.
The development bank, whose primary objective is to facilitate flow of credit for agriculture, rural infrastructure and rural development, and supervision of rural financial intermediaries, will organise joint liability groups (JLGs) comprising 7-10 farmers in the small and marginal category, he said.
"We have set a target of forming one lakh joint liability groups in the current financial year. About 10 lakh farmers will benefit by becoming members of the groups," said Mr Sarangi.
In the last couple of years, Nabard had organised around 30,000 JLGs across the country.
Pointing out that most of the farmers in India owned less than 2 acres of land, the Nabard chief said that by becoming a member of the JLG, small and marginal farmers who generally depend on informal sources of financing at usurious interest rates, can get credit from banks on competitive terms.
Ever since the SHG-Bank linkage programme was conceptualised and launched by Nabard in 1992, about 47 lakh self-help groups (as of March-end 2009), predominantly comprising poor women, have been able to access the formal banking sector in a sustainable and cost-effective manner.
By handling savings and internal lending, the SHGs have matured, acquired creditworthiness for themselves and earned the confidence of banks. As of March-end 2009, banks had an outstanding exposure of Rs 22680 crore to 42 lakh odd members of SHGs.
Nabard is not averse to setting up a bank provided this does not interfere with its primary mandate of facilitating flow of credit for agriculture, rural infrastructure and rural development, said Mr Sarangi.
In his reply to a question on whether Nabard would leverage its long-standing experience in rural lending to get a banking license from RBI, the Nabard chief said, "Without compromising our primary mandate, which is refinancing and supporting the needs of the agriculture sector in the country, we will not be averse to any new ideas."
Recently, Nabard appointed global management consultancy firm Boston Consulting Group (BCG) to prepare a report to restructure and diversify its operations to leverage its expertise in refinancing. The development bank is also seeking to implement a core banking solution.
Thanks: The Hindu Business Line
Kashmir lags behind Jammu in maize production, produces 1.6 tons per hectare against Jammu’s 2.2 tons
Sajad Kralyari
Srinagar, April 12:
Expressing concern over low production of maize in Jammu and Kashmir, Minister for Agriculture and Co-operatives Ghulam Hassan Mir Monday said that research carried out at the SK University of Agriculture Science and Technology (SKUAST) Kashmir does not reach farmers due to which “our average annual production is far less than average national maize production.”
“Three lakh hectares of land are under maize cultivation in Jammu and Kashmir. The average maize production in Kashmir is 1.57 tons which is far less. Research conducted at laboratories should reach farmers, which can increase production of this vital crop,” said Mir at the valedictory function of 3-day 53rd AICRP Maize Workshop organized by SKUAST-K at SKICC.
Mir said raising of maize crop in JK is fraught with enormous challenges due to unique climatic conditions.
“We have climatic constraints which act as stumbling blocks for producing this crop. University has released hybrid maize which can improve production of this essential crop,” said the Agriculture minister.
However, the minister hailed the University for carrying out Frontline Demonstrations, which he said have yielded good results.
“These demonstrations would help improve quality maize and increase production,” said Mir.
The minister also stressed on raising the crop near tourist places for generating employment and food security.
“The land at tourist places like Tangmarg, Shopian, Pahalgam and Pulwama are well irrigated and can yield good produce. The pop corn and sweet corn production can generate employment,” said Mir.
He stressed on implementation of the recommendations made at the conclusion of the 3-day workshop.
Speaking on the occasion VC SKUAST-K, Prof Anwar Alam also admitted that production of the maize in JK is low.
“Maize cultivation covers large area but its production is not good. This is a cause of concern,” said Prof Alam. “We had a tradition of growing corn but now it has gone,” he said adding that average production of maize in the State is nearly 2 tons per hectare which is low.
“Kashmir is lagging behind with average production at 1.6 tons per hectare while as Jammu produces 2.2 tons per hectare,” said Alam.
However, the VC said University has been doing the front line demonstrations for the past 3 years which has shown good results.
“During these demonstrations the average production was recorded at 3-7 tons per hectare. The newly introduced varieties produced good results,” said Alam.
He said JK is facing acute shortage of meat and poultry.
“If we want to meet this shortage we have to rare animals for which we need feed and fodder. This can be produced from maize,” said Alam.
Referring to the demand for pop and sweet cons by visiting tourists , Alam said Kashmir was a tourist place and maize production would help generate employment.
Earlier, the scientists from different states who participated in the workshop came up with the recommendations for improving the maize production.
.
The valedictory function was also attended by former VC of SKUAST-K Hashmatulah Khan, Director Agriculture Mian Majeed, Project Director on Maize Sian Dass, Director Research SKUAST-K, Dr A R Trag besides other scientist.
Thanks : The Daily Rising Kashmir
Chettuva (Kerala), April 10 (ANI): Union Agriculture Minister Sharad Pawar on Saturday reiterated the Government's high priority to the fishing sector keeping in view the immense possibilities in the sector in coming years.
He said that the sector has achieved over 6% growth rate. The sector has been one of the major foreign exchange earners, with revenue reaching approximately Rs.
8,000 crore in 2007-08, accounting for about 14% of the agricultural exports.
Speaking at Chettuva in Kerala, where he inaugurated the construction work of a fishing harbour, Mr. Pawar said that the Agriculture Ministry has been implementing a number of Central Sector and Centrally Sponsored Schemes, besides initiating various policy initiatives aimed at enhancement of production while securing livelihoods and welfare of fishermen.
Development of Fishing Harbours and Fish landing Centres is one of such schemes initiated and prioritized by the Ministry.
"Through this scheme, we have already taken up 7 major fishing harbours, 65 minor fishing harbours and 194 fish landing centres for construction along the country's vast coast line. Out of these, 6 major fishing harbours, 44 minor fishing harbours and 176 fish landing centres have been completed, while 1 major fishing harbour, 21 minor fishing harbours and 18 fish landing centres are at various stages of construction," he stated.
Pawar called upon States to adopt a proactive approach and formulate appropriate projects for more landing facilities since infrastructure facilities for berthing, landing and handling of fish created so far are still inadequate.
Explaining the importance of such infrastructure, he said: "Apart from the requirement for providing sheltered basin for berthing of boats and landing of catches, stringent quality requirements and food safety standards have assumed greater relevance in international fish trade. Fish importing nations insist on clean and hygienic landing facilities as a prerequisite to meet the high quality standards of seafood."
It is being believed that the Chettuva fishing harbour project would give a tremendous boost to fishing activities in the region and be an important instrument for economic growth.
On the benefits that would accrue after commencement of this harbour, the Minister said: 'I understand that Chettuva is one of the important fishing centres in Thrissur District, with rigorous fishing activity, close proximity to potential fishing grounds and good road connectivity.
Prof. K.V. Thomas, Minister of State for Agriculture, Consumer Affairs, Food and Public Distribution; S. Sharma, Kerala Minister of Fisheries, K.P. Rajendran, Kerala Minister for Revenue, P.C.Chacko, Member of Parliament and K.V. Abdul Khader, MLA were lso present on this occasion. (ANI)
Lucknow:
The Union Minister for Food Processing Industries, Subodh Kant Sahay, on Friday pointed out that Uttar Pradesh Agriculture Produce Market Committee Act (APMC) in its present form is acting as a hurdle in agriculture investment across the state.
“Mandi Parishads in UP have become a hub of thieves. The Act is restricting private investment. Thus the government (state) should amend the Act and allow contract farming,” said Sahay, who was in Lucknow on Friday.
According to him, the Centre wants to usher in investment in the agriculture sector in the state but the Act does not allow the same.
In Uttar Pradesh, the agriculture produce is governed by Uttar Pradesh Krishi Utpadan Mandi Adhiniyam, 1964. This Act does not allow direct sale or purchase from the farmer’s field by private players. There is also no provision for any kind of institutional support for contract farming. Farmers are allowed to sell their produce only through the Mandi Parishad.
“We have been trying to convince private sectors to invest in UP. While as such there is no infrastructure to attract investment, the APMC Act adds to the woes,” said Sahay, adding, “There is no administrative culture and no policy for investment in UP.”
He also blamed the poor post-harvest management in the state for lack of investment. Farmers have to sell their produce in haste, as there is no proper supply chain or cold chain, he said.
Criticising the state on lack of management and planning regarding agriculture produce, Sahay said the Centre is ready to pay Rs 50 crore for developing food parks and Rs 10 crore for cold chain but the state government has always failed to present a proper proposal for the same. “For the last six years, there has not been a proper proposal from the state to make use of the funds from by the Centre,” he added.
Speaking about the Maoist menace, the minister from Jharkhand, said incidents like Dantewada have occurred due to the apathy of the state governments, who are adopting a casual attitude towards tackling this menace.
“States have to be on the frontline while tackling the issue and Centre can only give back up support. The Centre sends money for development of the area but states are not bothered to utilise them. It is for this reason that youths are attracted towards the Maoists to earn a living,” said Sahay.
Thanks: indianexpress.com
The Union Minister for Food Processing Industries, Subodh Kant Sahay, on Friday pointed out that Uttar Pradesh Agriculture Produce Market Committee Act (APMC) in its present form is acting as a hurdle in agriculture investment across the state.
“Mandi Parishads in UP have become a hub of thieves. The Act is restricting private investment. Thus the government (state) should amend the Act and allow contract farming,” said Sahay, who was in Lucknow on Friday.
According to him, the Centre wants to usher in investment in the agriculture sector in the state but the Act does not allow the same.
In Uttar Pradesh, the agriculture produce is governed by Uttar Pradesh Krishi Utpadan Mandi Adhiniyam, 1964. This Act does not allow direct sale or purchase from the farmer’s field by private players. There is also no provision for any kind of institutional support for contract farming. Farmers are allowed to sell their produce only through the Mandi Parishad.
“We have been trying to convince private sectors to invest in UP. While as such there is no infrastructure to attract investment, the APMC Act adds to the woes,” said Sahay, adding, “There is no administrative culture and no policy for investment in UP.”
He also blamed the poor post-harvest management in the state for lack of investment. Farmers have to sell their produce in haste, as there is no proper supply chain or cold chain, he said.
Criticising the state on lack of management and planning regarding agriculture produce, Sahay said the Centre is ready to pay Rs 50 crore for developing food parks and Rs 10 crore for cold chain but the state government has always failed to present a proper proposal for the same. “For the last six years, there has not been a proper proposal from the state to make use of the funds from by the Centre,” he added.
Speaking about the Maoist menace, the minister from Jharkhand, said incidents like Dantewada have occurred due to the apathy of the state governments, who are adopting a casual attitude towards tackling this menace.
“States have to be on the frontline while tackling the issue and Centre can only give back up support. The Centre sends money for development of the area but states are not bothered to utilise them. It is for this reason that youths are attracted towards the Maoists to earn a living,” said Sahay.
Thanks: indianexpress.com
Bangalore, Apr 9: National Bank for Agriculture and Rural Development (NABARD) had extended financial assistance to the tune of Rs 3472.24 crore to Karnataka during financial year 2009-10.
The NABARD financial assistance included refinance assistance to banks in Karnataka to the tune of Rs 2823.50 crore towards production and investment credit, according to Dr Venkatesh Tagat, Chief General Manager.
Addressing a news conference in Bangalore on Friday, he said the Bank had also extended Rs 610.57 crore assistance to the state government for rural infrastructure development and a grant and loan of about Rs 38.18 crore for various promotional interventions.
NABARD has estimated a potential for credit deployment of Rs 37,000 crore in Karnataka in 2010-11, including Rs 17,250 crore for crop loans, Rs 6,674 crore for term credit in agriculture and allied activities besides Rs 13,340.53 crore for non-farm sector, agro and food processing sector and other priority sectors.
He said the Bank would give a special thrust to Rural Infrastructure Development Fund for financing the agro processing sector with focus on strengthening supply cahin management in the current year.
Tagat said special focus would be on organic farming, development of the horticulture sector, watershed and tribal development,transfer of technology, credit and access to market information to farmers through formation of Joint Liability Group of farmers, capacity building of members of farmers clubs and self-help groups to act as business facilitators and capacity building for cooperative credit delivery system.
In 2009-10, NABARD extended refinance support of Rs 2,028 crore to meet short-term credit needs for agriculture. This included Rs 1483 crore for state cooperative banks, district central cooperative banks and Rs 545 crore for Regional Rural banks.
Refinance of Rs 744.86 crore was extended towards investment credit to aid capital formation in farm and non-farm sectors. While the farm sector accounted for Rs 311.38 crore, microfinance/Self Help Groups and NFS accounted for Rs 224.63 crore and Rs 208.86 crore respectively.
The cumulative refinance support from NABARD towards investment creditin Karnataka aggregated Rs 9060.42 crore, he said.
NABARD sanctioned Rs 656.55 crore to Karnataka for rural infrastructure in 2009-10. An amount of Rs 610.57 crore was disbursed, which marked a 35% increase over previous year.
Under Watershed development, NABARD sanctioned Rs 2590 lakh grant support and sanctioned Rs 2613 lakh assistance, including Rs 1,022.50 lakh loan reimbursement to the state government. Under Rural Innovation Fund, 12 projects involving an assistance of Rs 75.688 lakh were sanctioned. An amount of Rs 38.435 lakh for 20 new projects under the farm technology transfer fund during the year were sanctioned.
A refinance of Rs 222.87 crore was released to 19,678 SHGS during the year under Microfinance.
During 2009-10, 2.94 lakh farmers were covered under the Kisan Credit card Scheme by RRBs and coops and 2.05 lakh by commercial banks.
Tagat said Rs 850 crore will be sanctioned to the State under the Rural Infrastructure Development Fund (RIDF) in 2010-11. The State had utilised Rs 456 crore in 2008-09, Rs. 610 crore in 2009-10. Of the Rs 850 crore, nearly Rs 400 crore would be sanctioned to flood-affected 14 north Karnataka districts.
"Under RIDF, the credit utilisation rate was 90 % from one to 10 tranches and disbursements were going on for tranches between 11 and 15. The estimates for 16th tranche for 2010-11 will be finalised soon,” he said.
He said the disbursement of investment credit for various projects has declined from Rs 1052 crore in 2008-09 to Rs 745 crore in 2009-10 on account of droughts and floods in north Karnataka.
NABARD, which launched RIDF in 1995, prepares each tranche for each financial year, The sanctioned projects sanctioned under the RIDF have made an impact in the form of increased irrigation potential, recharge of groundwater, flood protection, rural connectivity, storage capacity, marketing facilities, increase in literary rate, according to NABARD officials.
India needs an investment of almost Rs 1 lakh crore in the food processing industry to raise its percentage to 25 per cent of the total agricultural produce annually.
The second green revolution will not be successful unless the imperatives of post harvest management and value addition mechanism in agriculture are adopted in right earnest,” Union Minister for Food Processing Subodhkant Sahai told Business Standard here.
He said the percentage of food processing industry was as high as 80-85 per cent in developed economies vis-à-vis under 10 per cent in India.
“Even the developing countries in Asia like Thailand and Philippines have brought about a transformation in their economies by developing robust food processing infrastructure,” he added.
Sahai further suggested that the state governments should encourage contract farming on the lines of sugarcane to boost agriculture and allied industries.
“The contract farming would allow the market to invest in agriculture, water management and food processing. This way, the farmers would not shoulder any economic risk and will have the liberty to fix prices for their produce,” he said.
He said rural prosperity and industrialisation was the only solution to check migration to bigger towns.
He, however, lamented the Northern states in general were lax in adopting and investing in food processing industry.
Besides, he claimed that in the last 6 years, not a single demand had come to his department from the Uttar Pradesh government regarding food processing sector.
“We have given a lot of support to the private entrepreneurs in UP, but the state government has not sought our help,” he added.
The minister exhorted the state governments to frame separate policies for food processing industry, keep tax regime benign at 0-4 per cent and amend the Agriculture Produce Marketing Committee (APMC) Act.“The respective state governments should create conducive environment for private investment in food processing, which would not only lead to higher agriculture production, but better prices to farmers,” he noted. Sahai was here as chief guest at inaugural function of the national conference on Managing Agri-food Supply Chain organised by IIM Lucknow in association with Indian Society of Agribusiness Management.
Thanks: Business Standard
The second green revolution will not be successful unless the imperatives of post harvest management and value addition mechanism in agriculture are adopted in right earnest,” Union Minister for Food Processing Subodhkant Sahai told Business Standard here.
He said the percentage of food processing industry was as high as 80-85 per cent in developed economies vis-à-vis under 10 per cent in India.
“Even the developing countries in Asia like Thailand and Philippines have brought about a transformation in their economies by developing robust food processing infrastructure,” he added.
Sahai further suggested that the state governments should encourage contract farming on the lines of sugarcane to boost agriculture and allied industries.
“The contract farming would allow the market to invest in agriculture, water management and food processing. This way, the farmers would not shoulder any economic risk and will have the liberty to fix prices for their produce,” he said.
He said rural prosperity and industrialisation was the only solution to check migration to bigger towns.
He, however, lamented the Northern states in general were lax in adopting and investing in food processing industry.
Besides, he claimed that in the last 6 years, not a single demand had come to his department from the Uttar Pradesh government regarding food processing sector.
“We have given a lot of support to the private entrepreneurs in UP, but the state government has not sought our help,” he added.
The minister exhorted the state governments to frame separate policies for food processing industry, keep tax regime benign at 0-4 per cent and amend the Agriculture Produce Marketing Committee (APMC) Act.“The respective state governments should create conducive environment for private investment in food processing, which would not only lead to higher agriculture production, but better prices to farmers,” he noted. Sahai was here as chief guest at inaugural function of the national conference on Managing Agri-food Supply Chain organised by IIM Lucknow in association with Indian Society of Agribusiness Management.
Thanks: Business Standard
NAGPUR: Most farmers with good quality produce or organic products received an overwhelming response on the first day of the threeday ‘Mahapeek grain festival cum fair' of grains, spices and vegetables by farmers from Nagpur district.
Most other farmers, specially rice farmers, saw a mild response. The festival was inaugurated by district collector Pravin Darade and Zilla Parishad president Suresh Bhoyar at the Kadimbagh nursery premises in Civil Lines near CP Club. It is an effort by the Nagpur district agriculture department to help farmers market their produce better. The fair would remain open till Sunday from 10am to 9pm and has stalls by 102 farmers with 802 quintal stock.
However, even as the fair saw more visitors on the first day, as compared to the last fair, many farmers said they did not sell much. Farmers with organic produce, like Virendra Barbate and Manoj Jawanjal, said they had already sold a lot of their and got a good price for it. Jawanjal, from Kalmeshwar, sold almost four quintals of his organic ‘Bansi' wheat and tur dal on Friday.
He observed that proper grading and packaging matter to people. Kalmeshwar Kadu from Deshmukh Pardi village also sold his entire stock of organic wheat due to the good quality. Shankar Bobde, who grows organic Bansi wheat and most vegetables, also managed to sell most of his stock. However, farmers like Lalit Kalbandhe, Chandrashekhar Kamble and Arvind Sawai from village Veghwadi in Umrer taluka, with spices, jowar and hybrid wheat were unhappy with the response.
So was Surendra Kharpar from Narkhed with wheat, Taresh Shinde with Chawalkata rice and Amitabh Pawde from Yerla Pawde village. “Many people asked for rates but promised to come the next day,” they said. There were others like Nataji Tajne with desi jowar from village Salai in Saoner taluka, Bhuhan Miraj and Dinkar Dhoble from Kamptee taluka, who got a slightly better response but were unsatisfied. Amrut Balbudhe of village Baramba in Kamptee said, “It is already three months since the rice harvest. Most consumers have already bought their annual stock.” Some farmers like Arun Kawale from village Asali and Nan Wagh admitted that low quality grains were not selling.
A retired couple, PD Barade (former assistant registrar) and his wife Geeta from Mallarpur village in Bhiwapur taulka said they got good response for homemade desi products like garam masala and jawas chatni. The happiest lot were the women from the self help groups as they got an extremely good response for their papad, moong wadi, sewai, sandge, spices, pickles etc. Maya Bagde from Dawalmeti village on Amravati Road, who runs the Janjagruti Mahila Bachat Gat sold almost all her products.
Thanks: The Times Of India
Most other farmers, specially rice farmers, saw a mild response. The festival was inaugurated by district collector Pravin Darade and Zilla Parishad president Suresh Bhoyar at the Kadimbagh nursery premises in Civil Lines near CP Club. It is an effort by the Nagpur district agriculture department to help farmers market their produce better. The fair would remain open till Sunday from 10am to 9pm and has stalls by 102 farmers with 802 quintal stock.
However, even as the fair saw more visitors on the first day, as compared to the last fair, many farmers said they did not sell much. Farmers with organic produce, like Virendra Barbate and Manoj Jawanjal, said they had already sold a lot of their and got a good price for it. Jawanjal, from Kalmeshwar, sold almost four quintals of his organic ‘Bansi' wheat and tur dal on Friday.
He observed that proper grading and packaging matter to people. Kalmeshwar Kadu from Deshmukh Pardi village also sold his entire stock of organic wheat due to the good quality. Shankar Bobde, who grows organic Bansi wheat and most vegetables, also managed to sell most of his stock. However, farmers like Lalit Kalbandhe, Chandrashekhar Kamble and Arvind Sawai from village Veghwadi in Umrer taluka, with spices, jowar and hybrid wheat were unhappy with the response.
So was Surendra Kharpar from Narkhed with wheat, Taresh Shinde with Chawalkata rice and Amitabh Pawde from Yerla Pawde village. “Many people asked for rates but promised to come the next day,” they said. There were others like Nataji Tajne with desi jowar from village Salai in Saoner taluka, Bhuhan Miraj and Dinkar Dhoble from Kamptee taluka, who got a slightly better response but were unsatisfied. Amrut Balbudhe of village Baramba in Kamptee said, “It is already three months since the rice harvest. Most consumers have already bought their annual stock.” Some farmers like Arun Kawale from village Asali and Nan Wagh admitted that low quality grains were not selling.
A retired couple, PD Barade (former assistant registrar) and his wife Geeta from Mallarpur village in Bhiwapur taulka said they got good response for homemade desi products like garam masala and jawas chatni. The happiest lot were the women from the self help groups as they got an extremely good response for their papad, moong wadi, sewai, sandge, spices, pickles etc. Maya Bagde from Dawalmeti village on Amravati Road, who runs the Janjagruti Mahila Bachat Gat sold almost all her products.
Thanks: The Times Of India
Many farmers have allegedly committed suicide in Orissa who totally depend on the mercy of rain. In Orissa, farmers engaged in rain fed farming and many farmers ended their lives because of total crop loss due to bad monsoon.
AGRICULTURE IS the chief occupation in Orissa. Seventy five per cent of the total working population engaged in agriculture and agriculture related industries. The principal problem that agriculture in Orissa faces is the shortage of water in many areas. Orrisa is the Indian state which is most affected by climate change.
Many farmers have allegedly committed suicide in Orissa who totally depend on the mercy of rain. In Orissa, farmers engaged in rain fed farming and many farmers ended their lives because of total crop loss due to bad monsoon.
The frequency at which farmers are killing themselves in Orissa is appalling. Small farmers of Orissa borrow loans from micro-finance NGO’s whose rate of interest is incredibly high. Banks give up loans on five per cent rate of interest but it is unable to access this which requires lot of documentation process and this make rural farmer attract towards micro-finance NGO’s where disbursal process is quick and easy but the rate of interest is almost 24 per cent to 50 per cent.
Farmers who took loan from these micro-finance NGO’s were trapped into life long process of death. This is clearly being seen that these NGO’s are exploiting small farmers of Orissa.
Fear of not being able to pay the amount of loan which they have took from micro-finance NGO’s drove the farmers to commit suicide. Now loans have become a fear for every farmer of Orissa.
Government takes the pride in having comprehensive agricultural policy but fails to provide good irrigation facilities and insurance cover to protect farmers. This shows that our government fails to stop suicide cases in Orissa.