NEWS Bulletin from Indian Society For Sustainable Agriculture And Rural Development
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On GMOs----
1. Monsanto offers transgenic papaya tech to TNAU
2. Rural livelihood still at subsistence level: study
On EXPORTS---
3. Mega plan to boost agri exports proposed; AEZs to be connected
4. APEDA suggests measures to up agro commodities export
5. Concessions on rice export ban
6. Australia rubbishes reports on poor quality of wheat
7. India to get $5,94, 349 to combat leaf rust in coffee
On CLIMATE CHANGE-----
8. Finance Minister brings up climate change 'burden' at World Bank
On COOPERATIVES -----
9. Patil panel recommends revival package for ailing sugar cooperative factories
10. Co-op credit plan may be revised
11. Finance Minister unveils 2 new funds for micro-credit
12. Don't blame futures trade for price rise: panel chief
13. Mukesh's Navi Mumbai SEZ gets approval
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Monsanto offers transgenic papaya tech to TNAU
ASHOK B SHARMA
Posted online: Wednesday, October 24, 2007 at 0030 hrs IST
Posted online: Wednesday, October 24, 2007 at 0030 hrs IST
New Delhi, Oct 23 The Tamil Nadu Agriculture University (TNAU) will now develop transgenic papaya seeds resistant to the ring spot virus. The US seed multinational Monsanto, has transferred its technology to TNAU on a royalty-free basis for 10 years for developing such papayas.
"We will transfer this technology to the popular CO-7 variety papaya. It will take 4 years before the transgenic crop is released for commercial cultivation," said F Balasubramanian, director, TNAU Centre for Plant Molecular Biology.
He said that the papaya ring spot virus (PRSV) causes a crop loss in the range of 30% to 70%. It affects production and productivity by decreasing the photosynthetic capacity of the plants, which results in stunted growth, decrease in sugar concentration, deformed and inedible fruit, and plant mortality.
The virus is transmitted between plants by mechanical activities like pruning and by insect vectors - Myzus pericae and Aphis gossypii. It also survives on cucurbitaceous crops like squash, cucumber, pumpkin.
Monsanto's technology facilitates the development of transgenic PRSV-resistant papaya, which would contain a virus coat protein for developing resistance to the virus. "In other words, a protein gene from the pathogen is used to fight against the pathogen itself, similar to the way vaccines immunise human beings against different diseases," said the Monsanto's chief of India operations, Sekhar Natarajan.
Natarajan said that it was the third instance of royalty-free technology transfer by Monsanto in India. Earlier the technology to develop vitamin A rich mustard crop was transferred free of cost to TERI. The technology to develop Bt brinjal was also transferred free of cost to TNAU.
The technology transfer for PRSV resistant papaya was mediated by the International Service for the Acquisition of Agri-biotech Applications (ISAAA). The ISAAA chief, Clive James who was here of the organisation's board meeting termed it as "an act of corporate philantrophy"
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Rural livelihood still at subsistence level: study
ASHOK B SHARMA
Posted online: Sunday , October 21, 2007 at 2301 hrs IST
Posted online: Sunday , October 21, 2007 at 2301 hrs IST
In rural India less than half of the households do not own farmlands, but still there exists other options for subsistence livelihood.
A recent National Health Family Survey (NHFS-3) done by the Mumbai based International Institute for Population Studies with technical assistance from the US based Marco International found that 41.5% of Indian rural households do not own farmland. About 30% of the rural households own irrigated land, 20% own only non-irrigated farm land and 9% own both irrigated and non-irrigated farmland. Most of households that own land have parcels of land that are of five or less acres.
However, the survey found that two-thirds of rural population own a farm animal, an alternative source of subsistence livelihood.
India has a population of about 1.136 billion people and two-third of households live in rural areas. Farmer leaders have alleged that modern agriculture is not remunerative with the high costs for inputs like chemical fertilizers, pesticides, seeds and farm machinery. The policymakers thus faces the problem of providing alternative sources of better livelihood options or strengthening the prospects of the existing livelihood options which are at subsistence level.
Massive migration to urban areas may not be a viable solution as wide disparities already exist among urban population with growing number of slums. The survey noted that the proportion of the urban rich varied from state to state and region to region.
NHFS-3, commissioned by the Union ministry of health and family welfare, however did not deal with other off-farm traditional livelihood options still existing in rural area. The study selected some 33 household assets to construct a wealth index which is divided into 5 groups or quintiles. According to the index 7% of the rural population is in the highest quintile (rich) as compared to 48% in urban areas. It places 16% of rural population in the second top quintile as compared to 29% in urban areas. In the third top quintile, the index places 26% of rural population and 14% of urban population. The second and third quintiles obviously represents a large section of upper middle class.
In the fourth quintile, the index places 26% of rural population and 6% of urban population and in the last quintile (poor), it places 28% of rural population and 3% of urban population.
According to the survey in rural areas 2.9% women and 4% men employed in professional, technical, administrative and managerial jobs. About 2.3% women and 9% men operate as sales workers, while 2.9% women and 3.5% men are service workers. About 18.2% women and 31.9% men are skilled and unskilled production workers, while 72.7% women and 49% men are agricultural workers.
The study projects 56% rural households having power supply, 52% rural household without toilet facility and 85% of rural household using improved sources of drinking water.
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Mega plan to boost agri exports proposed; AEZs to be connected
ASHOK B SHARMA
Posted online: Sunday , October 21, 2007 at 2300 hrs IST
Posted online: Sunday , October 21, 2007 at 2300 hrs IST
A number of agri exports zones (AEZs) spread across the country can now be assured of proper logistical support for their activity. A joint study done by the Agriculture and Processed Food Export Development Authority (APEDA) and ICRA Management Consulting Services Ltd has proposed 12 growth centres or hubs connecting a number of AEZs at an estimated investment of Rs 15,000 crore.
AEZs now numbering 60 are dotted over the country, some in very remote areas. Some of the identified hubs are—Rai in Sonepat district and close to Delhi to connect AEZs in Punjab and Haryana, Agra in UP and on the proposed Golden Quadrilateral, Dharampuri near Bangalore, Kolkata to connect AEZs in West Bengal, Orissa, Bihar and northeastern India, Guwahati in Assam, Muzafarpur on the Golden Quadrilateral in Bihar and Mumbai, Nasik, Pune and Nagpur connecting AEZs in Maharashtra.
"This project calls for investments by all stakeholders—the central and state government agencies and the private sector. The project ensures collection centres providing post-harvest management, storage facilities, value addition centres at points and then transportation reefer containers and vans to the identified hubs. The hubs would ultimately be connected to the air and sea ports," said the APEDA chairman, KS Money
Money said APEDA has initiated the process of setting up of the state-of-the-art centres for perishable cargo at 11 airports in collaboration with multiple stakeholders.
A MoU has been signed with the Gujarat Agro Industries Corporation and Concor for setting up of a centre for perishable cargo at Ahmedabad airport at an investment of Rs 2.5 crore. The project which is fully funded by APEDA is expected to be completed by July 2008.
Amritsar airport will have a similar facility with an estimated investment of Rs 30 crore for which a MoU has been signed with the Punjab government's agency, PAGREXCO. A MoU has been signed between APEDA and AAI for setting up of a centre for perishable cargo at Dum Dum airport, Kolkata at an estimated investment of Rs 2.53 crore. This project is expected to be completed by December 2007.
The existing centre for perishable cargo at Thiruvananthapuram airport is being upgraded at an investment Rs 65 lakh by the Kerala State Industrial Enterprise Ltd, while APEDA has signed a MoU with Cochin International Airport for setting up of a similar facility at an investment of Rs 23.95 crore.
The project for setting up of a centre for perishable cargo at Bagdogra airport in collaboration with West Bengal food processing industries and horticulture department at an investment of Rs 2.99 crore is expected to be completed by March 2008. Also a similar facility at Goa airport being set up by Concor is expected to be completed by this period at an investment of Rs 2.13 crore. Concor and HAL are expected to complete a similar project at Nashik airport by March 2008.
A MoU has been signed by APEDA with the West Bengal government for setting up of a centre for perishable cargo at Haldia sea port with an investment of Rs 5.561 crore. APEDA has sanctioned Rs 19 lakh to RSAMB for setting up of a walk-in-cold room at Jaipur airport. Similar facility is under consideration for Guwahati airport. Walk-in-cold stores are also being set up at Aizwal, Dimapur, Imphal and Agartala airports. Besides common packhouse facilities have been approved for agro produces in Maharashtra, Assam and Chhattisgarh and mechanized handling facilities for egg washing, sorting and grading at Saroor Nagar in Andhra Pradesh.
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APEDA suggests measures to up agro commodities export
ASHOK B SHARMA
Posted online: Sunday , October 21, 2007 at 2237 hrs IST
Posted online: Sunday , October 21, 2007 at 2237 hrs IST
New Delhi, Oct 21 The Agriculture and Processed Food Export Development Authority (APEDA), with a view to boost export of agro commodities, has suggested to the government a series of measures aimed at simplification of procedures for documentation and regulatory clearances at the ports, subsidising freight cost for all perishables, and an inland transport subsidy for perishables.
Total agro exports monitored by APEDA increased by 12.42% in value terms in 2006-07 to be at $45,550.30 million. However, exports of pulses, dairy, poultry products, processed fruits, juices, spirit, beverages, basmati rice, and wheat declined. Basmati rice export declined from $687.39 million in 2005-06 to $617.40 million in 2006-07.
The reasons cited for the fall are due to high paddy prices and withdrawal of services of two shipping lines to West Asia. Poultry exports suffered on account of Avian flu in the country. Exports of pulses, dairy products, and wheat suffered because of the government imposed export ban. APEDA has suggested the need to have a consistent policy. "Sudden ban on exports spoils our overseas market, " said a leading exporter
"One of the major constraints that exporters suffer is that of complicated procedures for documentation and clearances at ports. We had set up an inter-ministerial panel to simplify procedures. The panel's recommendations have been sent to the law ministry for vetting. A big congregation of overseas retailers and aggregators is to take place in 2008,"said the outgoing chairman of APEDA, KS Money.
APEDA has also initiated the programme of directed contact of Indian exporters with overseas retailers and aggregators. "A big congregation of overseas retailers and aggregators is scheduled to take place early ext year," said Money.
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Concessions on rice export ban
Posted online: Tuesday , October 23, 2007 at 2306 hrs IST
New Delhi, Oct 23 In a major relief to growers and exporters, the government today decided to exempt from export ban all non-basmati rice varieties, which have a minimum export p rice of $425 per tonne. Stocks of all varieties lying in port godowns up to October 10 have also been exempted from the export ban.
Super variety rice having an export p rice of above $425 will be treated like basmati.
The decision to give these concessions was taken at a meeting of agriculture minister Sharad Pawar, commerce and industry minister Kamal Nath and Haryana chief minister Bhupinder Singh Hooda here this evening. "Hooda explained to us the situation being faced by Haryana and Punjab farmers. We also spoke on phone to Andhra Chief Minister Y S R Reddy who has been receiving representations from rice growers," Nath said.
He said exports for which letters of credit were opened before October 9 will not come under the ban.
The Centre had imposed a ban on exports of non-basmati rice on October 9 to build buffer stock in the country and improve domestic supplies. Nath said the step should provide relief to exporters and growers as all premium quality rice with a p rice tag of $425 will be exempted from the export ban.
Both rice growers and exporters have been sending representations to chief ministers of Punjab, Haryana and Andhra Pradesh besides the Central ministries of commerce and agriculture.
—PTI
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Australia rubbishes reports on poor quality of wheat
ASHOK B SHARMA
Posted online: Tuesday , October 23, 2007 at 2351 hrs IST
Posted online: Tuesday , October 23, 2007 at 2351 hrs IST
New Delhi, Oct 23 The Australian high commission on Tuesday denied reports about poor quality wheat from that country have been exported here.
"India has only imported white wheat from Australia. The red wheat to which media reports refer is therefore clearly not Australian wheat", acting Australian high commissioner to India David Holly said in a press statement "As Indian agriculture minister, Sharad Pawar had said earlier this month, Australian wheat is exactly like Indian wheat but it is not red wheat".
"Australian white wheat, which is traded around the world, enjoys an enviable reputation as being a quality leader in the international grains market", Holly said. "We sympathise with those faced with poor quality wheat, but urge the media to correct inaccurate reporting that the red wheat is Australian."
According to Australian High Commission, following a hiatus since 2001-02, India imported white wheat from Australia over the period April 2006 – March 2007. India has not imported wheat from Australia since this time mainly due to Australia's drought.
According to Australian High Commission, following a hiatus since 2001-02, India imported white wheat from Australia over the period April 2006 – March 2007. India has not imported wheat from Australia since this time mainly due to Australia's drought.
The Australian Quarantine and Inspection Service (AQIS) inspects all Australian wheat prior to its export to India. AQIS has confirmed that all wheat exported to India met the quarantine conditions and quality standards specified by the Indian government.
On arrival in India the Ministry of Agriculture, the State Trading Corporation of India (STC) and the Department of Health and Family Welfare all inspect the imported wheat. If these agencies find that there are any quarantine conditions or quality standards which have not been met the wheat is rejected.
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India to get $5,94, 349 to combat leaf rust in coffee
Posted online: Thursday , October 18, 2007 at 0205 hrs IST
New Delhi, Oct 17 The country would receive $ 5,94,349 from a UN-funded body to check diseases like leaf rust – found in coffee crop that leads to the withering away of the leaf. The assistance is part of a $ 2.91 million fund, which has been approved by Common Fund for Commodities (CFC) to check diseases in coffee in five countries, including India.
The Amsterdam-based CFC, an inter-governmental financial institution of United Nations, has approved the fund to finance a project on "Increasing the Resilience of Coffee Production to Leaf Rust and Other Diseases" in India and some African countries such as Kenya, Uganda, Rwanda and Zimbabwe, a release from International Coffee Organisation (ICO) said. In this project, the Coffee Board, government's trade promotion body for the commodity, would contribute $ 3,16,573, a senior government official said.
When contacted, Coffee Board Chairman G V Krishna Rau said, "The project was originally proposed by the Coffee Board of India. After it was recommended by the ICO for CFC funding, the project scope was expanded at the instance of the CFC to include four other countries from Africa which also face similar problems."
He said it is good that the project has been finally approved, and added "it will help us in identifying and breeding the coffee plant varieties resistant to leaf rust and anthracnose diseases."
In India, the five-year project would cover coffee leaf rust and anthracnose diseases, he said, adding it would be completed in 2011-12.
—PTI
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Finance Minister brings up climate change 'burden' at World Bank
ASHOK B SHARMA
Posted online: Monday , October 22, 2007 at 2247 hrs IST
Posted online: Monday , October 22, 2007 at 2247 hrs IST
New Delhi, Oct 22 The World Bank may soon have to include the issue of climate change in its list of global public goods (GPGs), finance minister P Chidambaran said while addressing the development committee meeting of World Bank in Washington.
Chidambaran asked the World Bank to take into account issues relating to carbon emissions, energy equity and the principle of "common but differentiated responsibilities". "Global burden sharing arrangements and national priorities of developing countries should not be disturbed," he pointed out.
Also, while preparing the Clean Energy Framework, the Bank should keep in mind that additional of financial resources and availability of cost-effective clean technology was critical for developing countries, Chidambram said.
He however pointed out that while climate change is no doubt a matter of concern to all, the Bank must not lose sight of other GPGs of concern for the developing countries such as orderly global labour mobility, technology transfer and intellectual property rights, etc.
GPGs are those resources and capacities with an impact that must be dealt with internationally and require the cooperation and understanding of the global community for reaching any conclusion on it.
The minister also said the Bank must not forget its primary development mandate of poverty reduction and attainment of millennium development goals. "The core mandate of the World Bank Group is working for a world free of poverty," he said.
In another statement at the development council meeting on Sunday, Chidambaram underlined the importance of energy and said India will require about $154 billion in the next five years for energy investments to sustain its growth and human development objectives.
He has also told the World Bank that while scaling up its energy investments to $10 billion is a commendable task, the amount will "fall short of the huge investments needs in developing countries where access to affordable energy is a binding constraint in development."
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Patil panel recommends revival package for ailing sugar cooperative factories
ASHOK B SHARMA
Posted online: Sunday , October 14, 2007 at 2350 hrs IST
Posted online: Sunday , October 14, 2007 at 2350 hrs IST
New Delhi, Oct 14 The panel headed by Shivajirao G Patil has recommended a revival package of Rs 4,000 crore for 100 identified ailing sugar cooperative factories.
This includes Rs 2,000 crore exclusively for rehabilitation and another Rs 2,000 crore for extending cheaper working capital at the rate of Rs 20 per factory. Cheaper working capital should be provided by the sole funding agency for the cooperatives—National Cooperative Development Corporation (NCDC).
The expert panel, which set up the NCDC, has also suggested that the revival programme should include modernisation and technical upgradation of plants and setting up of power cogeneration and ethanol production facilities. The panel suggested that 60% of the total revival package should be met through soft loans from the Sugar Development Fund (SDF), 30% would be interest free investment loans from NCDC to state governments to be passed on as equity in cooperatives. The balance 10% investment should be done by the cooperative society.
The Patil panel surveyed 315 cooperative sugar mills and found 125 ailing units. Out of these 125 sick cooperatives, it recommended the revival of 100 units. The panel suggested that the central government provide an interest subsidy of 10% per annum to NCDC towards its cost of funds. The central government should also sub-vent by way of interest subsidy on working capital loan to the extent of 4% per annum.
As per the panel's formula, the central government would provide a total interest subsidy of Rs 510 crore, NCDC will provide Rs 2,600 crore in total, and Rs 1200 would be extended by the SDF. Cooperative societies would make an investment of Rs 200 crore. It suggested the SDF should provide relief to its outstanding loans by waiving 50% of the interest accrued on its loans till the commencement of repayment of loan as per original schedule and also consider rescheduling of loan payment.
The Patil panel noted that the sugar faced an unprecedented crisis in 2002-03 to 2004-05. In 2002-03 the industry suffered due to fall in sugar prices due to surplus production in 1999-2000 and in 2002-03. In 2003-04 the industry suffered largely on account of drought. The situation adversely affected the operations of the cooperative units.
The panel argued that rival of sugar industry, particularly the cooperative units are necessary. Sugar industry is the largest agro-processing industry located in rural areas, with an annual turnover of Rs 200 billion and providing employment to hundreds of people. Out of the 505 installed sugar mills, 203 are in cooperative sector.
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Co-op credit plan may be revised
ASHOK B SHARMA
Posted online: Wednesday, October 10, 2007 at 2306 hrs IST
Posted online: Wednesday, October 10, 2007 at 2306 hrs IST
New Delhi, Oct 10 The Centre on Wednesday said it would revise the Rs 4,850-crore revival package for long-term cooperative credit by month-end and finalise it by November-end as several states have expressed reservations on the current scheme.
"Of the 15 key recommendations of the Vaidyanathan Committee (on which the package is based), they (some states) have reservations on 8 recommendations. Though there is a broad consensus, I will draw up a revised package by end of this month, incorporating as many suggestions of states as possible. I will send it to state governments by the first week of November and call a smaller number of states for intensive discussion. The package would be finalised by November-end," finance minister P Chidambaram said after meeting state representatives. The minister added that the amount of the package may go up a bit but could not come down.
West Bengal finance minister Asim Dasgupta said "based on the national aggregates, the relative share of the Centre, states and cooperatives in the package is worked out at 74:11:15. Since state-wise accumulated losses of the cooperatives will vary, their relative shares will also vary. However, it will be difficult for cooperatives to bear 15% of the requirement for recapitalisation."
He suggested that "long-term cooperative credit societies be allowed to retain state government's equity up to 25% of total subscribed share capital and the amount in excess of 25% be converted into grant by state governments concerned."
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Finance Minister unveils 2 new funds for micro-credit
ASHOK B SHARMA
Posted online: Tuesday , October 09, 2007 at 2325 hrs IST
Posted online: Tuesday , October 09, 2007 at 2325 hrs IST
New Delhi, Oct 9 With the prospect of mid-term elections looming large, the UPA government has decided to roll out yet another scheme for the aam admi. The Centre will soon set up two funds with a corpus of Rs 500 crore each to ensure easy credit availability to the poor.
"Based on the interim report (of the Financial Inclusion Committee), we have decided to set up two funds–the Financial Inclusion Fund and Financial Inclusion Technology Fund of Rs 500 crore each," finance minister P Chidambaram told a conference on micro-finance here on Tuesday.
Set up in June 2006, the Financial Inclusion Committee was chaired by Prime Minister's Economic Advisory Council chairman and former RBI governor C Rangarajan.
This is a substantial increase over the government's earlier decision to set up a Rs 100-crore micro-finance development fund. The finance minister also said that the government was considering a proposal to regulate for-profit micro-finance institutions. The Micro Finance Bill, which has been introduced in Parliament, only seeks to regulate not-for-profit micro-finance companies.
"We want a report on the for-profit micro-finance institutions as well so that it should be regulated. But what form the regulations should take and who should regulate are what we are looking at," the finance minister said.
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Don't blame futures trade for price rise: panel chief
ASHOK B SHARMA
Posted online: Tuesday , October 16, 2007 at 0027 hrs IST
Posted online: Tuesday , October 16, 2007 at 0027 hrs IST
New Delhi, Oct 15 The expert panel on the futures markets is not likely to propose a ban on futures trading in any agriculture commodity. Rather, it will propose building strategic reserves of several commodities to deal with price volatility.
Speaking to FE, panel chairman Abhijit Sen said: "The terms of reference is not for deliberating whether a ban should be imposed on any tradable commodity, but to find out whether futures trading has caused a rise in prices of essential commodities in the recent past. Therefore, we would not be suggesting a ban on futures trading."
According to Sen, futures trading provides liquidity and can benefit farmers and consumers if prices stabilises at optimal levels. His comments are significant as futures trading has been criticised by all political parties as inflation spiked. The panel will also suggest means to check price volatility and determine ways that could benefit farmers.
Speaking about the reasons for the rise in prices, Sen said futures trading should not be blamed. There were other reasons like a shortfall in production, an increase in demand, lack of proper transportation as well as a rise in the cost of transportation.
According to Sen, more competitive futures trading with a larger number of players could stabilise prices and earn farmers remunerative prices for their produce. He however agreed : "price stabilization factor is very weak."
To deal with volatility in prices, Sen argued that there was need to build strategic reserves of agro commodities, which could then be offloaded onto the market to combat an abnormal rise or fall in prices. The offloading of stock during a price rise would keep inflationary trends under control and benefit consumers.
Another thing that needs to be done, he said was to put in place a regulation to check panic buying and selling. He said that futures trading provides liquidity and can benefit the farmers and consumers if prices stabilises at optimal levels
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Mukesh's Navi Mumbai SEZ gets approval
ASHOK B SHARMA
posted online: Friday , October 19, 2007 at 2320 hrs IST
posted online: Friday , October 19, 2007 at 2320 hrs IST
New Delhi, Oct 19 It is a mixed bag for the Ambani brothers on the SEZ front. While the board of approvals for special economic zones (SEZ) on Friday gave its conditional nod to induct co-developers in the Mukesh Ambani-promoted Navi Mumbai SEZ, the Uttar Pradesh government has told the Centre that an SEZ project in Noida—in which Anil Ambani is a strategic partner—has failed to meet the norms.
Commerce secretary G K Pillai, who heads the BoA, told reporters after the meeting that the Navi Mumbai SEZ proposal was okayed subject to the condition that the promoters "produce data on net assets of the co-developers and the complete financial data by the month-end". With this approval, the Navi Mumbai SEZ, will now be developed through the infusion of private equity investment after financial restructuring.
Sources said Jai Corp, the holding firm for the seven co-developers of the project, has already raised Rs 2,500 crore by selling 10% stake through an overseas infrastructure fund. This amount will be given to the co-developers for building infrastructure in the tax-free enclave. To conform to norms, including those on contiguity, the huge project was initially split into four zones—one for a multi-product SEZ and three for IT and ITeS SEZs.
The proposal was deferred in the last month's BoA meeting for verification of net worth of these co-developers. While the rules say that the minimum net worth of a co-developer should be Rs 250 crore, these co-developers have only an equity of Rs 1 lakh each.
Meanwhile, officials said the Anil Ambani promoted SEZ in Noida was going nowhere. "It is neither with the Centre nor with the UP government. But the Centre has once again asked the state to give a final decision after studying the new National Policy on Rehabilitation and Resettlement. Before the policy was announced, the state government had told us that they cannot carry out any acquisition for the SEZ," an official said.
The SEZ was cleared by the erstwhile Mulayam Singh government last year. But when Mayawati came to power, the state government had initiated an inquiry into the project saying prima facie it did not meet the contiguity norms as a road was passing through the SEZ plot bifurcating it into two.
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