Bilateral pacts may help India sustain exports of agri commodities

Source: The Economic Times, May 14, 2012

CHANDIGARH: Exporters of agri commodities such as wheat, sugar and cotton feel that shipments could pick up if India would enter into bilateral agreements with countries in the Middle East, Africa and the Saarc bloc.

Comfortable global stock and a slowdown in the world economy are making Indian agri commodity exports unviable, say exporters. With a weak rupee, exporters are confident of demand for Indian agri products in international market if bilateral agreements are in place.

Modern technology key to bridge demand-supply gap in grains

Source: The Economic Times, May 02, 2012

AHMEDABAD: Experts have advocated adoption of modern technology to improve farm productivity to bridge the projected demand and supply gap in essential commodities.

As per the government estimates, India may be short of 14 million tones (MT) of foodgrains by 2017, said Prof C K Rao of Foundation for Biotechnology Awareness and Education, Bangalore.

World Bank okays $50 m credit for Assam farm project

Source: The Hindu Business Line, Mar 11, 2012

Kozhikode:The World Bank has approved a $50-million additional credit for an ongoing agricultural project in Assam.

The Assam Agricultural Competitiveness Project (AACP) aims at increasing the productivity, profitability and market access of the farming community in the State. The focus is on mainstreaming management approaches and practices, strengthening the agriculture technology management agencies and making ground water usage more sustainable.

Investments in rural roads in select districts with low-cost construction and innovative bridge designs also form part of the project. The roads are meant to connect smaller habitations and for linking agricultural production with markets in a cost-effective manner.

Agricultural output growth expected to decline to 2.5% in FY12

Source: The Economic Times, Feb 10, 2012

MUMBAI | NEW DELHI: In 2007, 27-year-old Kaushalendra from Bihar shunned the placement frenzy, which would see many of his colleagues earn fat salaries, in favour of a more homespun alternative: Selling fresh vegetables on a push cart to residents of his hometown Nalanda.

Farm growth at realistic levels

Source: Business standard, Feb 08, 2012

New Delhi:  Agriculture, forestry and fisheries are a drag in the gross domestic numbers (GDP) numbers released on Tuesday. These have slumped from seven per cent growth in 2010-11 to just about 2.5 per cent in 2011-12.

Though most experts have attributed this fall to a high base (farm production rose a staggering seven per cent in 2010-11), others feel the waning of the impact of the drought in 2009 on agriculture has brought farm growth to realistic levels. In 2009-10, India’s foodgrain output dropped to 218 million tonnes, as the country suffered one of the worst droughts in 30 years. The output rose a steep 12 per cent in 2010-11 to 245 million tonnes. At 250 million tonnes, the growth this year has been rather moderate.

Punjab-based firm plans to set up agriculture park

Source: Business standard, Dec 27, 2011

Punjab-based Sampurn Agri-ventures, a subsidiary of state-based NASA Agro has plans to set up integrated agri-business model for wasteland development in Punjab’s Malwa region with a project cost of Rs 500 crore. The Rs 500 crore project involves setting up 90 acres agro park by NASA Agro at a cost of Rs 400 crore and a biogas plant including two digesters by Sampurn Agri-Ventures in technical collaboration with Kirloskar Integrated Technologies.

Speaking to Business Standard, Sampurn Agri-Ventures, Director, Sanjeev Nagpal said, ” Initially, we are putting up 2 digesters and 1 MW biogas power plant in Fazilka with an investment of Rs. 32 crore which would be commissioned within a year’s time. In the project, the Kirloskar Integrated Technologies will have 10 per cent stake, Punjab agro 11 per cent while rest would be of NASA Agro and promoters equity. The digesters would produce 120,000 cubic metres of gas which will act as raw material for power plant, 150 tonnes fertilizers per day, fodder etc.”

He added, ” We have technical collaboration with Kirloskar Integrated Technologies for bio-gas plant.” It is worth mentioning that Kirloskar Group has developed paddy-straw based biogas plant specifically for this region with forward integration to use brackish water for biogas digesters, and processing paddy straw residue into bio-fertilizers with silica, cellulose and lignin content ideal to revive the alkaline soils and promote other allied activities for the economic development of the region. He added that Kirloskar group would not only provide the patented biogas power plant, but also would have equity participation of 10 per cent in the project.

He added, ” Further, NASA agro would be setting up an integrated agro park spread over 90 acres having all the requisite infrastructure with a project cost of Rs. 400 crore in two phases The first phase is likley to be completed in a years time. In the first phase, the agro park to be developed by Nasa Agro shall empower the farmers to start dairy, poultry/duck and fish farming, cultivation of high quality fruits, vegetables and mushroom. The entire agri-business needs to be a successful value chain that is agronomically sustainable, environmentally sensitive, socially responsible and economically viable both nationally and globally, that delivers tangible benefits to all stake holders.”

“In the second phase we have plans to set up storage facilities including cold chain, packing and packaging facilities etc,” he said. As far as funding is concerned, Nagpal added that it would be funded through promoters equity, private equity and term loan from banks.

It is pertinent to mention here that this project is a major success to revive the Malwa belt which is reeling under innumerable socio-economic problems with its depleted resources, vanishing cultivable land, alkaline soil, and unpotable brackish water that is endangering the lives and health of the residents.

Plan panel pushes irrigation projects to bolster food security

 

Source: LiveMint.com, Sept 11, 2011

New Delhi: The Planning Commission has approved irrigation projects worth an estimated Rs. 2 trillion over the past year-and-a-half to bolster India’s food security, but analysts say most of the money will not be utilized because of corruption and poor execution.

Government plans to lower grain price for open-market sale

Source: Business standard, Aug 16, 2011

New Delhi: As the government prepares to procure rice from farmers during the coming crop marketing season, beginning October, the food ministry is working on a proposal to lower the price of grains allocated to states for sale in the open markets.

It also plans to lower the price of grains allocated to states over and above the normal quantity supplied for the public distribution system (PDS). Officials said this would not only help in improving lifting of grains allocated to states for the open market sale but would also help in clearing state warehouses of grains procured from previous seasons.

The proposal to lower the price of grains for open market sale comes on the heels of a similar move by the food ministry to sell wheat and rice through PDS at Rs 2 and Rs 3 per kilogram respectively as proposed in the draft food security bill.

“The price which is being worked out will be based on the minimum support price of wheat and rice, but will be lower than the current rate,” a senior food ministry official said. Officials from the food ministry have also met with their counterparts in the finance ministry to discuss the financial implications of the proposal.

The central government had allocated 1 million tonnes of rice and 1 million tonnes of wheat to states for sale in the open markets to retail consumers. The allocation made in January this year is valid till September. However, till July, just 40 per cent of the total rice and wheat allocated to states was lifted.

Wheat was sold to states at Rs 11-12 per kg, while the grade ‘A’ rice was sold at Rs 15.85 a kg and common rice at Rs 15.41 per kg. Despite the Centre selling the grains at a highly subsidised rate, without passing on the interest cost on storage, states didn’t show any inclination to lift the grains.

Food Minister K V Thomas had written to all states in June to improve lifting of grains meant for sale in the open markets and even allowed them to sell the grains in jails, old-age homes and educational institutions, etc.

In spite of this, states complained of high prices. In a recent meeting with the central government, representatives from Madhya Pradesh, Orissa, Uttar Pradesh and Andhra Pradesh said high price of the grains allocated to them for open market sale and also that made over and above normal PDS allocations was a main deterrent in lifting of grains.

“When we supply, say seven kg rice to a beneficiary at the below poverty line (BPL) rate of Rs 5.65 per kg, how can we ask him to pay an extra Rs 3-4 per kg for another kilogram?” a representative from Uttar Pradesh asked during the meeting.

The issue of high price also dogs the special ad hoc allocations, which the central government makes over and above the normal quantities supplied for distribution through PDS.

In fact, in 2011 alone, 15 million tonnes of wheat and rice has been allocated for BPL and above poverty line (APL) families over and above the normal quantities supplied for both these targeted beneficiaries. However, till June, states have lifted just 54 per cent of the ad hoc additional allocation made for BPL and 21 per cent of that made for APL families.

The problem is more acute in case of additional allocation made for APL families, as their price is more than the ration card rate. “We are thinking of bringing it down to improve the lifting,” the official said.

Spices export jumps 21 % in Q1

Source: The Economic Times, July 28, 2011

KOCHI: The export of spices has registered 21 % increase in value for the April-June 2011 period. In terms of quantity, there is, however, a 26 % decline. The export touched 1,16,900 tonnes valued at Rs 1885.24 crore. At $ 421.55 million, the rise in earnings in dollar terms is 23 %. In the same period in the previous year, the total spices export touched 1,57,850 tonnes valued at Rs 1560.47 crore.

The export of pepper, cardamom, ginger, turmeric, nutmeg etc has risen in both volumes and value. Chilli, coriander, cumin, curry powder have recorded a decline in export. Mint and spice oils and oleoresins fell in quantity terms but rose in value.

Pepper export clocked 5750 tonnes valued at Rs 150.37 crore registering 21 % rise in quantity and 88 % rise in value. Small cardamom export went up by 219 % in quantity and 175 % in value at 590 tonnes valued at Rs 58.19 crore. Chilli, the single largest spice export item, fell by 37 % in quantity and 6 % in value at 40,500 tonnes valued at Rs 365.75 crore. At 3150 tonnes valued around Rs 371.70 crore mint products showed 12 % fall in quantity and 51 % increase in value. Spice oils and oleoresins export was at 1820 tonnes valued at Rs 300.95 crore, down by 2 per cent in quantity and up by 46 % in value.

Agri-products get protection under India-Malaysia FTA

Source: Business Standard, July 04, 2011

New Delhi: Import of sensitive agri-products like palm oil, coffee, black tea and pepper from Malaysia will remain subject to high duty despite India operationalising free trade agreement (FTA) with the South East nation.

The plantation items, mostly grown in South India, have been kept in the’Special Product’ category under which import duties have been cut by a small margin and will remain high enough to protect domestic producers.