NEWS Bulletin from Indian Society For Sustainable Agriculture And Rural Development
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On GMOs----
1. Government hesitant on labelling genetically modified food
2. Govt to double freight subsidy for cut flower exports
WORLD BANK & IFC----
3. India top reformer in trading across borders
4. Singapore is best, Egypt gets reformers' crown
On COOPERATIVES---
5. Panel wants co-ops to source funds via ECBs, public issues
On Controversial WHEAT IMPORTS----
6. CVC squeezes Govt on wheat imports
7. Duty-free wheat import may stay
8. Nafed to sell wheat to Centre at Rs 1,125/quintal
On FARMERS----
9. Andhra peasants protest anti-farmer policies
10. Shadows over rural job scheme
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Government hesitant on labelling genetically modified food
ASHOK B SHARMA
Posted online: Monday , October 01, 2007 at 0101 hrs IST
Posted online: Monday , October 01, 2007 at 0101 hrs IST
New Delhi, Sep 30 The Union health ministry is reluctant to go ahead with its earlier proposal pertaining to a mandatory labelling of genetically modified (GM) food.
It has kept in abeyance the report of the expert committee headed by Shiv Lal, the additional director-general of the National Institute of Communicable Diseases.
In March this year, the Lal panel had recommended a mandatory labelling of both processed and unprocessed GM food and food ingredients produced in the country as well as those to be imported.
A senior official of the health ministry, when asked to comment on the future of the Lal panel report, said, "The labelling norms suggested by the panel are too stringent and difficult for implementation. We have not yet referred to the Central Committee of Food Standards." The health ministry had earlier proposed to amend the Prevention of Food Adulteration Rules, 1955 to include the provisions for mandatory labelling of GM food.
"Labelling of GM food is for giving consumers an informed choice. We had decided that all GM food irrespective of whether they are processed or unprocessed as well as the ingredients should be labelled," said Bejon Misra of the Voluntary Organisation in Interest of Consumer Education (VOICE). Misra was one of the panel members, along with other food analysts and experts.
The health ministry had set up the Lal panel in response to the provisions of the Foreign Trade Policy, 2006, which said that all imported GM products should be labelled.
The Foriegn Trade Policy, 2006 further said, "If the consignment does not contain such a label and is later found to contain traces of GM material, the importer is liable for penal action under the Foreign Trade (Development & Regulation) Act, 1992."
Meanwhile the Union ministry of environment and forests has ensured free entry of processed GM food without any regulation by the Genetic Engineering Approval Committee.
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Govt to double freight subsidy for cut flower exports
ASHOK B SHARMA
Posted online: Monday , October 01, 2007 at 0108 hrs IST
Posted online: Monday , October 01, 2007 at 0108 hrs IST
New Delhi, Sep 30 The government is planning to double air freight subsidy for fresh cut flower exports from the existing 25% to 50%.
This measure is expected to give Indian cut flower exporters a 'level playing field' vis-à-vis their competitors in East Africa and East Asia.
Europe and Japan are two major destinations for Indian cut flower exports, accounting for 76% of the total FoB value and 88% of the export volume. East African countries like Kenya, Tanzania are logistically well placed to cater to European markets, particularly Holland where auction takes place. Similarly South Korea, Thailand, China, and Vietnam are well placed to cater to the Japanese market.
The Agriculture and Processed Food Export Development Authority (APEDA), which also promotes floriculture exports has suggested doubling of the air freight subsidy on cut flower exports to 50% in the 11 th five-year plan period, which commenced from April 1, this year.
APEDA's suggestion is now engaging the attention of the Union commerce ministry. Floriculture units, particularly those located around international airports in Mumbai, Pune, and Bangalore, would be largely benefited if the hike in air freight subsidy materialises.
However there are second-generation floriculture projects, which are coming up in areas away from the international airports. These up coming projects will have to bear the cost of inland transport, which may vary from Rs 0.25 to Rs 0.60 per stem depending upon the number stems and shipment. At times some importers may book small consignments of 5,000 to 10,000 stems, in which case the inland transport cost would be as high as Rs 1 per stem. With a view to help the second generation floriculture project located miles away from international airports, the industry has suggested to the government to render inland transport subsidy also. It has also asked for special insurance scheme to cover floriculture crops.
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India top reformer in trading across borders
ASHOK B SHARMA
Posted online: Wednesday, September 26, 2007 at 2309 hrs IST
Posted online: Wednesday, September 26, 2007 at 2309 hrs IST
New Delhi, Sep 26 India is now setting the standard for reforms in South Asia, with an explicit policy objective to become a leading business-friendly economy, says the Doing Business 2008 — the fifth in an annual report series issued by the World Bank and IFC.
Besides making it easier to trade across borders, India increased access to credit by expanding credit bureau coverage to individuals as well as businesses. It also introduced an electronic registry for security rights granted by companies
South Asia picked up the pace of regulatory reform over the past year to become the second-fastest reforming region in the world, on a par with the speed of reforms in the countries of the OECD, finds Doing Business 2008. The pickup in reforms in South Asia was led by India which rose 12 places to the 120th rank on the ease of doing business and made the reforms of business regulation a policy objective. India was the top reformer worldwide in trading across borders. Last year South Asia ranked lowest on the rate of reforms; this year two-thirds of its countries had at least one reform.
But despite these gains, India's ranking is significantly lower than most other south Asia nations. The south Asian countries ahead of India in ranking include Bhutan (119), Nepal (111), Bangladesh (107), Sri Lanka (101) Pakistan (76) and Maldives (60). Only Afghanistan was placed below India in the 159th position.
The report finds the time to obtain a business licence in India ranges from 159 days in Bhubaneswar to 522 in Ranchi. The time to register property ranges from 35 days in Hyderabad to 155 in Calcutta. If the top score among Indian cities in each of the Doing Business indicators were used for the country as a whole, India would rise 55 places in the aggregate country rankings.
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Singapore is best, Egypt gets reformers' crown
ASHOK B SHARMA
Posted online: Wednesday, September 26, 2007 at 2311 hrs IST
Posted online: Wednesday, September 26, 2007 at 2311 hrs IST
New Delhi, Sep 26 Singapore is the best place in the world to do business, finds Doing Business 2008, an annual report series issued by the World Bank and IFC.
The city-state is followed by New Zealand, the United States, Hong Kong (China), Denmark, the United Kingdom, Canada, Ireland, Australia and Iceland. Other major countries where doing business is relatively easier include Japan, Thailand, Switzerland and Germany.
A high ranking on the ease of doing business does mean that the government has created a regulatory environment conducive to operate a business.
However, the ranking does not say the whole story as it covers only business regulations and excludes other important factors like a countries proximity to markets, quality of infrastructure services, security of property, transparency of government procurement, macro economic conditions or the underlying strength of the institutions.
This year Egypt tops the list of reformers that are making it easier to do business. The other top 10 reformers are Croatia, Ghana, FYR Macedonia, Georgia, Colombia, Saudi Arabia, Kenya, China, and Bulgaria. Another 11 countries — Armenia, Bhutan, Burkina Faso, the Czech Republic, Guatemala, Honduras, Mauritius, Mozambique, Portugal, Tunisia, and Uzbekistan — had three or more reforms. Reformers made it simpler to start a business, strengthened property rights, enhanced investor protections, increased access to credit, eased tax burdens, and expedited trade while reducing costs. A total of 36 countries made it easier to do business in the current year
Egypt registered improvement in half of the 10 areas studied by Doing Business. Starting a business was made much easier by a number of measures. The minimum capital requirement for starting a business was cut down from 50,000 Egyptian pounds to 1,000 while the start up time and costs were halved. Fees for registering property was reduced from 3% to a low fixed rate following which revenues from fee registration jumped 39% in the first 6 months. One-stop shops were opened which cut down export time by 5 days and import time by 7 days.
The leading region in the current year was Eastern Europe and the former Soviet Union which surpassed East Asia in the ease of doing business with several of the countries in the region surpassing many Western European economies.
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Panel wants co-ops to source funds via ECBs, public issues
ASHOK B SHARMA
Posted online: Tuesday , September 25, 2007 at 2340 hrs IST
Posted online: Tuesday , September 25, 2007 at 2340 hrs IST
New Delhi, Sep 25 A high-powered committee headed by noted co-operative expert Shivajirao G Patil has suggested that cooperative societies should be allowed to mobilise resources through external commercial borrowings (ECBs) and initial public offerings (IPOs).
The panel, in its interim report submitted to the government recently, has also recommended necessary changes in the law for facilitating the cooperative societies to go for ECBs and IPOs.
"In a competitive liberalised economy all players should be given a level-playing field. If corporate houses can be allowed to source cheap funds through ECBs and IPOs, why should the cooperatives be debarred?" Patil told FE. The panel report also called for a separate chapter in the government's Plan document dealing exclusively on cooperatives.
Patil said the panel made clear recommendations to the government and asked for necessary amendments to the Act governing the cooperative institutions in the country.
"There should be a single regulation in the country for cooperatives. The state governments should not be allowed to supercede the governance of cooperative societies on unjustified grounds. Cooperatives are grassroots public institutions and therefore should not remain under the control of the government and the bureaucracy. Immediate elections to the board should be conducted," he said.
The Patil panel has also suggested appropriate financial package for bailing out ailing cooperatives. "If the government can bail out Unit Trust of India when it was affected by a scam, then why can't it do so for the sick cooperatives where public money is involved?" he said.
Patil has also chaired another panel set up by the National Cooperative Development Corporation (NCDC) to suggest measures for reviving the sick cooperatives. The report suggested detailed measures for bailing out ailing cooperatives in different sector like banking, sugar, tobacco, marketing, textiles
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CVC squeezes Govt on wheat imports
ASHOK B SHARMA
Posted online: Sunday , September 30, 2007 at 1956 hrs IST
Posted online: Sunday , September 30, 2007 at 1956 hrs IST
Government's wheat import plans has run into rough weather with the Central Vigilance Commission (CVC) questioning the motive behind the decision.
According to sources the CVC has asked the Union food and consumer affairs ministry to clarify weather imports made in 2006 and 2007 could have been avoided if the government agencies were sincere in procuring enough wheat for the buffer stock from farmers, by adequately raising the minimum support price (MSP). It has questioned as to why wheat imports were planned and announced before the harvest.
The CVC has also questioned the government for the delay in announcing the minimum support price (MSP) for wheat and the bonus price on procurement. The report of the Commission for Agricultural Costs and Prices (CACP) said : "The late announcement of bonus (in 2006) deprived many farmers, particularly small farmers, who sold their crop to private traders as soon it was harvested"
The CVC has also asked as to why the government had to import wheat at higher prices by placing an extra burden on the exchequer, when the produce was adequately available in the country and wheat output has increased to about 75 million tonne
The enquiry panel has questioned the government for lowering quarantine norms. Many state governments have rejected imported wheat as "unfit for human consumption."
The CVC has acted upon a complaint filed by the former BJP MP, Kirit Somaiya. "We have received the complaint from Mr Somaiya and have asked the food ministry to clarify certain points raised by him," said a senior CVC official.
The government had in 2006 imported 5.5 million tonne wheat at prices ranging between $ 178.75 to $ 228.94 a tonne. Five tenders were floated in the period February 20, 2006 to August 30, 2006.
In 2007, the State Trading Corporation of India (STC) floated a tender in May which attracted bids for 306,000 tonne at $ 263 a tonne, but this tender was subsequently scrapped by the government citing high prices. Later in response to a fresh tender floated in August, this year the government finalized bids for import of 795,000 tonne wheat at an average price of $ 389.45 a tonne.
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Duty-free wheat import may stay
ASHOK B SHARMA
Posted online: Monday , September 24, 2007 at 2324 hrs IST
Posted online: Monday , September 24, 2007 at 2324 hrs IST
New Delhi, Sep 24 The government may extend duty-free import of wheat for private traders to augment domestic supplies and keep prices under check. Moreover, it may also allow duty-free imports of wheat flour if prices go up during the upcoming festive season.
"I see no problem at the official level to push that recommendation," said department of food & public distribution secretary T Nanda Kumar referring to the Roller Flour Millers Federation of India (RFMFI) demand for duty-free wheat import by private traders beyond December 2007.
"I do not understand why flour millers want wheat and not wheat products at zero duty. As of now we have not decided on it. But if we see a huge rise in prices of flour we may do it," he said. FE had earlier reported that the government is considering a proposal to allow duty-free import of wheat flour as well.
Kumar was speaking at the federation's annual general meeting here on Monday. On RFMFI's appeal to the government not to go ahead with the proposal of duty-free imports of wheat products such as atta, maida and suji, Kumar said it would not be required if wheat prices are at a comfortable position.
On flour millers' demand to withdraw power of states to impose stock limits, Kumar said Centre could not take powers from the state government, given after due deliberations and considerations. Referring to a demand of exempting wheat and wheat flour from value-added tax, the food secretary favoured zero per cent duty on wheat products.
He also informed that the government was looking at the option of 'food coupon' to contain the leakages and diversion from public distribution system (PDS). "We are operating the food coupon scheme on an experimental basis with 5%-10% of PDS supplies. Similar schemes are being run in Brazil and Sri Lanka. The proposal is being discussed in the ministry," he said.
Speaking at the occasion, Food Corporation of India CMD, Alok Sinha said the market price of wheat this year had been reasonably stable and there was a consensus that it would remain stable during the year. Hence, there would be no need to operate the open market sales scheme as wheat prices in the market are comfortable.
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Nafed to sell wheat to Centre at Rs 1,125/quintal
ASHOK B SHARMA
Posted online: Tuesday , September 25, 2007 at 2344 hrs IST
Posted online: Tuesday , September 25, 2007 at 2344 hrs IST
National Agricultural Cooperative Marketing Federation (Nafed) would be selling 1.47 lakh tonne of wheat to the government at the price of Rs 1,125 per quintal towards the central pool. The government has already contracted the quantity and it would be transferred to Food Corporation of India's godowns shortly.
"Nafed would be selling commercially procured wheat to the government for the central pool. The quantity is 1.47 lakh tonne and would be sold at Rs 1,125 per quintal," said Alok Ranjan, MD, Nafed.
The development, however, has been full of the characteristic indecision which has been come to be associated with wheat. Nafed had earlier offered quantity at an average price of Rs 1,102 per quintal. But the government asked for wheat at Rs 1,048 per quintal. The delay in arriving at decision led to an increase in the price due to carrying costs.
The event highlights the government's inability to take a prompt decision on the price of the grain and to come to a timely conclusion to procure the grain at the best offered price. On similar line, the government had scraped a wheat import tender at an average price offering of $263 per tonne in June this year.
Less than forty days later, in July, the government contracted 5.11 lakh tonne of wheat at an average price of $325.59 per tonne. Then again on September 3 the government contracted 7,95,000 tonne of wheat at an average price of $389.45.
Buying wheat from Nafed would be significant as the government can still procure wheat from the domestic market at a much cheaper rate.
However, directly procuring wheat via local tenders has become a contentious issue, with the Prime Minister's Office staying the move. The PMO had observed, "A domestic tender will adversely offset the vast number of consumers who purchase their requirement of wheat from open market. Thus, purchase of wheat through domestic tender may be kept in abeyance," as reported by FE.
This also points out how other government agencies and local private bodies have been able to procure the grain at reasonable rates and offer the same to the government for its central pool.
... to expand seed distribution biz
National Agricultural Cooperative Marketing Federation (Nafed) is planning to expand its seed distribution business to Rs 80 crore in this fiscal from Rs 49.16 crore in 2006-07. Besides, the federation also aims to take its consumer marketing initiative to beyond Rs 100 crore from the present Rs 59.05 crore.
Further, the cooperative has entered into contract farming agreements with 50 villages in Tamil Nadu and 20 villages in Orissa.
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Andhra peasants protest anti-farmer policies
ASHOK B SHARMA
Posted online: Friday , September 28, 2007 at 2027 hrs IST
Posted online: Friday , September 28, 2007 at 2027 hrs IST
New Delhi, September 28: Farmers from major rice producing state, Andhra Pradesh are now gathering in the Capital to press upon the government to adequately raise the minimum support price (MSP) for paddy. They alleged that government's present policies were responsible for farmers' suicides.
The Commission for Agricultural Costs and Prices (CACP) has recommended that the MSP for wheat be raised to Rs 1,000 a quintal, while that for common variety paddy remains at Rs 645 a quintal and that of Grade A variety paddy at 675 a quintal.
The Andhra farmers have demanded that CACP be made autonomous and have districtwise representation. They have also demanded that the MSPs for various crops be made remunerative enough to not only cover the cost but also adequately raise the farmers' income.
Four farmers' representatives from Andhra Pradesh, namely, K Ramulu, K Narayana Reddy, G Govind Reddy and D Vasanth Kumar arrived in Delhi on padyatra from Hyderabad on Friday. "We will sit on an indefinite dharna in Jantar Mantar till our demands are fulfilled. Hundreds of our colleagues will be joining us tomorrow," Ramulu detailed.
The national level farmer leaders like Krishan Bir Chaudhary of Bharatiya Krishak Samaj and NK Shukla of All India Kisan Sabha joined the Andhra farmers and extended their support for the cause.
Interestingly the banner of the protesting farmers read "When Americans are planning scientifically to build huge air-conditioners to protect global warming, can't we find a single 'management guru' to stop farmers' suicides, honourable Prime Minister, please come forward to discuss with us."
The farmer leaders alleged that in Andhra Pradesh sugarcane growers were committing suicides
The Andhra farmers have demanded that agriculture be brought under concurrent list of the Constitution, setting up of a price stabilization fund to bail out farmers in the event of crop failure due to natural calamities, removing sugar from the purview of the Essential Commodities Act, checking the sale of spurious seeds and fertilizers, regular supply of power and mechanism to deal with price fluctuation a volatility.
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Shadows over rural job scheme
ASHOK B SHARMA
Posted online: Friday , September 28, 2007 at 2340 hrs IST
Posted online: Friday , September 28, 2007 at 2340 hrs IST
New Delhi, Sep 28 Even as the Congress-led UPA government is out to woo the aam-aadmi amid talks of a possible mid-term poll by extending the rural job guarantee scheme to the entire country, doubts have been raised by the government itself and its National Advisory Council (NAC).
The National Rural Employment Guarantee Act (NREGA) of the government has been one of the most successful populist measures announced by the UPA government which has provided employment of over 2.1 crore man-days across 330 districts across the country.
However, according to the government's own admission, states like Uttar Pradesh, Jharkhand, Orrisa amongst others have not lived up to delivering the designed goal of the NREGA. There has been mixed reaction from the people over the scheme's implementation, with non-payment of wages being the most common grievance.
"There is little difference between the NREGA and earlier employment programmes… the basic purpose of providing employment on demand, at the statutory minimum wage, is nowhere being achieved," a presentation by the government admits.
The NREGA was launched promising some million households in India a level of financial protection through guaranteed work or unemployment benefit.
According to a presentation to the National Advisory Council (NAC), the government's guiding agency regarding policies, the main issues concerning the NREGA have been low allocation of funds, and even lower utilisation, woefully inadequate generation of employment, non-payment of minimum wages, no allowance so far, absence of facilities at worksites and doubtful productivity gains.
Another major problem faced by the government was the ground-level implementation. In most of the districts, when the programme has been implemented complains have been frequent about non-payment of the minimum wages.
The programme, announced by the government in 2005 and started implementation in 2006-07, has seen the exchequer spending Rs 8,823.36 crore in 2006-07 and a projected spending of Rs 3,487.96 crore in 2007-08.
The government's estimates show that about 65% of the total spent went towards providing wages to local workers and the remaining to procure materials for various works.
There is a positive side to it too. According to estimates, local employment has resulted in cutting down migration of labour by as much as 60% in certain areas.
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