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Wednesday, January 16, 2008

[vinnomot] AVIAN FLU In India + Trade & FTAs + Nobel Laureate Edmund Phelps + India's Islands

NEWS Bulletin from Indian Society For Sustainable Agriculture And Rural Development
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1. Avian flu appears again in India
 
On TRADE & FTAs------
2. India, Italy to boost agri trade, investment  
3. Olive oil imports set to rise post India-EU FTA
4. 'Free trade pact with US, Canada on cards'
5. South Asia Industry for removing hurdles in land route trade
 
6. More jobs can lead to inclusive growth: Nobel Laureate Edmund Phelps.
 
7. India's island territories gear up for fishery, tourism
8. Chhattisgarh seeks rice research institute
9. Jharkhand seeks Rs 1k cr to renovate ponds
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Avian flu appears again in India
 
 
ASHOK B SHARMA
Posted online: Tuesday , January 15, 2008 at 2030 hrs IST
 
New Delhi, January 15: India once again has become the victim of the incidence of avian flu on poultry. The recent outbreak in Birbhum and Dakshin Dinajpur districts of West Bengal was confirmed by the central Government.
 
Earlier the incidence of Avian Flu on poultry occurred in early 2006, in western parts of the country, and in July 2007 in Manipur, in the North Eastern part. In 2006, the poultry industry suffered an estimated loss of Rs 30,000 million, while in 2007 it was Rs 6,700 million.
 
On January 11, 2008 unusual mortality of birds was reported from state poultry farm in Dakshin Dinajpur district and in some areas of Birbhum district in West Bengal. On the following day the state government collected samples and sent to the High Security Animal Disease Laboratory, Bhopal. "One sample from each district of Birbhum and Dakshin Dinajpur districts have been found positive for highly pathogenic avian influenza virus – H5 – by the laboratory," said the animal husbandry commissioner at the Centre, Santanu Bandopadhaya.
 
He said that based on the initial assessment of the state government, there was death of about 35,525 birds in 102 villages in six blocks in Birbhum district and death of 288 birds in one state poultry farm in Dakshim Dinajpur district in the last seven days.
 
He said "the outbreak of the disease appears to be localized only to few blocks in Birbhum and only one farm in Dakshin Dinajpupr districts of West Bengal. There is no report of unusual mortality or sickness in the neighbouring areas."
 
On getting the report of unusual mortality of poultry birds in West Bengal the central Government had immediately deputed officers from the department of animal husbandry, dairying and fisheries to reach the site. These officers have been present on the site since January 12, 2008 to advice and guide the officers of state government. The state government was advised to seal the border with neighboring countries and also the affected areas.
 
According to the West Bengal government sources 60 rapid response teams has been formed for implementation of action plan in the affected areas in Birbhum district. These teams are equipped with necessary protective equipments like masks, gloves.
 
Centre is planning to send 5,000 more personal protective equipment and masks to the state government as per their request. The Centre has also has impressed upon West Bengal government to provide compensation to the affected farmers whose birds are being culled Necessary funds have been provided by the Centre under its scheme for the purpose. The state government has also been requested to take immediate necessary action as per the detailed action plan already intimated in November, 2006.
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India, Italy to boost agri trade, investment
 
 
ASHOK B SHARMA
Posted online: Wednesday, January 16, 2008 at 2020 hrs IST
 
New Delhi, January 16: Italy and India agreed to boost bilateral trade, investment and technology transfer in agriculture.
 
In the field of technology transfer, Italy would help setting up of agri food parks in the country with a period of 18 months. Both sides agreed to work out the issue of food quality standards for boosting trade. A food testing laboratory with Italian technical assistance would be soon set up in Kolkata.
 
"Italy has offered to import marine products, poultry meat, milk and durum wheat from India and in return wants to export wine, processed food, meat, coffee, agri processing machines and post harvest technology, said the Union agriculture minister Sharad Pawar after a MoU was signed between the two countries on agri food sector on Wednesday.
 
The MoU was signed between the visiting Italian minister for agriculture, food and forestry policies, Paolo De Castro and the Indian minister of state for food processing industries, Subodh Kant Sahai in the presence of Pawar. The MoU also proposes creation of a joint foundation for exchange of know how and technology. The MoU is for five years and thereafter subjected to automatic renewal for another period, if either party has no objection.
 
De Castro said : "Italy is an important market for Indian agricultural products almost accounting for 200 million Euros." He said that India needs to lower its high tariff barriers to give access to Italian products and added that Italy was interested to increase its agri food exports to India to 100 million Euros. De Castro's remarks are significant when India is planning to have a free trade agreement with the European Union.
 
He recalled the cementing of relations done at the time of the visit of the Italian Prime Minister, Romano Prodi to India in February last year and said : "I am here today for the start of a new dialogue – a political and economic level discussion between the two countries."
 
In the course of the discussion, Pawar raised the issue of stringent sanitary and phytosanitary measures implemented by Europe in trade which has denied access to Indian products. Both sides agreed to work out the issue.
 
The Emilia-Romagna region of Italy also signed a MoU with FieldFresh Foods Pvt Ltd at a business workshop organized by the Federation of Indian Chambers of Commerce and Industry. Emilia-Romagna region is know for production of farm machinery, post-harvest technology and food processing machninery
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Olive oil imports set to rise post India-EU FTA
 
 
ASHOK B SHARMA
Posted online: Monday , January 14, 2008 at 0041 hrs IST
 
New Delhi, Jan 13 The proposed India-EU free trade agreement may open doors for easy import of olive oil from Europe. Major olive oil exporting countries like Spain, Italy, and Greece are insisting upon India to reduce its duty, remove non-tariff barriers and other local taxes and levies and marketing restrictions like maximum retail price system that guarantee a 35% margin to the retailer.
 
At present, the effective duty on olive oil is about 50%, which includes a basic duty of 45%. The Bureau of Indian Standards has also laid down quality norms for olive oil.
 
Vegetable oil has become a contentious issue in India's proposed trade agreements.
 
The Malaysian minister of international trade and industry, Dato' Seri Rafidah Aziz, who was here last November, had asked India to reduce its applied tariffs on different grades of palm oils, before the signing of the comprehensive economic cooperation agreement.
 
The prime minister of Greece, Kostas Karamanlis, who led an official delegation to India last week, had elaborate discussions with the government on the issue of boosting bilateral trade to 1 billion euro by 2010, and also future prospects of the proposed India-EU free trade agreement. Among other items of export interest, Karanmalis also mentioned olive oil.
 
The Indian commerce minister, Kamal Nath said, "We are negotiating with EU for both trade and investment. It will be the largest trade agreement in the world."
 
According to official sources, the government may consider easy entry of imported olive oil on the grounds of its nutritive value, also to augment availability of vegetable oils with a view to keep price inflation under check.
 
Greece is the third major olive oil producer, producing more than 3,00,000 tonne annually, out of which 70% is extra virgin olive oil. Karamanlis also mentioned other farm items like fruits, vegetables, dairy products, wine, which Greece wants to export to India. He said feta cheese, masicha from Chios island, ouzo are products of protected designation of origin under geographical indications.
 
The total size of the olive oil market in India is around 4 million euro in terms of value and 2,000 tonne in terms of volume, out of which Spanish Companies command a share of about 60%. The Italian brand Filippo Berio is making forays in the domestic market.
 
According to the economic and commercial counselor in the Spanish Embassy in India, Jose Antonio Bretones, Spanish Companies have set aside a budget of 30,000 euro for generic activities and another 1,50,000 euro for concrete marketing plans in India. Spain is the world's largest exporter of olive oil.
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'Free trade pact with US, Canada on cards'
 
 
ASHOK B SHARMA
Posted online: Wednesday, January 09, 2008 at 2334 hrs IST
 
New Delhi, Jan 9 Adding to its bouquet of free-trade agreements (FTA) with several countries, India on Wednesday said it was discussing such bilateral pacts with the US and Canada. New Delhi has also decided to increase the country's global economic engagement to $550 billion from the present $450 billion.
 
The market-opening pacts with the US and Canada would be on the lines of trade agreements being negotiated with the EU and the Asean, commerce and industry minister Kamal Nath said.
 
"As a trading nation, India is now firmly established at the top table of the World Trade Organisation (WTO), irrespective of the outcome of the Doha Development Round, and bilateral trade agreements are currently in the pipeline with at least ten potential partners ranging from Asean, the EU, to the US and Canada," Nath said at the Pravasi Bharatiya Divas ceremony here. "Currently, our global economic engagement is $450 billion and we have a target to take it to $550 billion," he added.
 
Other than India, only North American Free Trade Area (Nafta), EU and China have sub-Cabinet level commercial dialogue with the US. With the US and India recording a trade turnover of more than $34 billion between January-October, 2007, both sides are keen on furthering a trade agreement dialogue.
 
At the recently held India Economic Summit here Nath had responded to a US Congressman's suggestion for the introduction of a legislation in the Congress for both the nations to commence talks on an FTA, saying it needed to be examined. Besides, India is negotiating a bilateral trade and investment agreement, on the lines of a free-trade pact, with the EU.
 
India and Canada, with a $5 billion worth bilateral trade, had inked a Foreign Investment and Protection Agreement in June last year to ensure investor protection in each other's market. Canadians have been pitching for a FTA with India to get more access to the latter's market.
 
Nath also invited the overseas Indians to reach out to global SME's for catalysing their economic engagement with India He also asked NRIs to form meaningful partnerships with Indian firms looking to set up beach heads overseas by providing technology, logistical marketing and financial support.
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South Asia Industry for removing hurdles in land route trade
 
 
ASHOK B SHARMA
Posted online: Monday , January 14, 2008 at 2025 hrs IST
 
New Delhi, Jan 13 Industry body of South Asia has called for removing the bottlenecks in land route trade.
 
The 42nd meeting of the executive SAARC Chamber of Commerce and Industry held here in Delhi on Sunday decided that the apex industry bodies in respective countries of the region would lobby with their governments to removes the bottlenecks in the land route trade.
 
The newly-elected president of the SAARC Chamber of Commerce and Industry (SCCI), Tariq Sayeed told FE, "Most of the trade in the region is through land route expect for that with Sri Lanka and Maldives. It is less expensive and quicker. But we are concerned over unnecessary delays at the border points."
 
Sayeed is the past president of the Federation of Pakistan Chamber of Commerce and Industry.
 
He said that there were several bottlenecks, particularly in India-Pakistan land route trade like delay in custom clearance, lack of adequate parking facility and container terminals for storage.
 
The Union minister of state for commerce Jairam Ramesh has assured the SCCI that he would work towards removing the bottlenecks in land route trade from the Indian side. He said that India would have a common goods and services tax for the entire country by 2025. The process would initially begin with central and state GSTs by 2010.
 
Also, he said that after allowing FDIs from Bangladesh on a case-to-case basis, India must open doors for foreign direct investments from Pakistan as well. It could be subject to FIPB approval on a case-to-case basis, which would take care of the security concerns, he added.
 
SAARC consists of eight South Asian countries namely, Afghanistan, Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan and Sri Lanka, and South Asia Free Trade Agreement (SAFTA) came into being from January 1, 2006. Afghanistan became a member of SAARC after the Dhaka ministerial. The SCCI on Saturday included the Afghanistan Cahamber of Commerce and Industry as its new member.
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More jobs can lead to inclusive growth: Nobel Laureate
 
 
ASHOK B SHARMA
Posted online: Monday , January 14, 2008 at 2018 hrs IST
 
New Delhi, January 14: Creation of more jobs, reasonably high wages for same type of work and innovations can lead to inclusive growth in the Economy, according to the Nobel Laureate Edmund Phelps.
 
Addressing the Bharat Ram Memorial Seminar organized by Sri Ram Centre for Industrial Relations and Human Resources and the Federation of Indian Chambers of Commerce and Industry on Monday Phelps proposed that the government should render fiscal incentives, support or subsidy to corporate house for creation of more and more jobs with high wages. "High wages enable workers to solve various problems, participate in the growing Economy and live with dignity," he said.
 
He said that jobs, particularly for the disadvantaged and poor can lead to distributive justice. "The way the market Economy determines wage, it creates problems of inclusion. The government should step in to regulate, if necessary. There should be a vibrant labour market for equalizing wage rate for same type of work."
 
When pointed out that high wages may lead to price inflationary trend in the Economy, he said:"It is the duty of the central bank of the country to take care of such situation."
 
Phelps stressed upon innovation as another necessary aspect for economic growth to be sustainable and dynamic. Jobs and innovations added to the capability of workers and lead to dynamism in the Economy and this ultimately would lead to inclusive growth, he said.
 
He said that indigenous innovation can achieve more dynamism in the Economy.
 
The professor emeritus of the London School of Economics, Lord Meghnad Desai said: "In India the entire distribution pattern is of social nature due to political considerations. It is similar to the civil rights movements of yesteryears in the US. This should be given up and the distribution pattern needs to be changed. Government should encourage low-technology labour-intensive industries."
 
The Union minister for Panchayati Raj Institutions and northeast development, Mani Shankar Aiyer, however, batted for political Economy and said that democratic actions dictate economic policies in the country as India after Independence began with a full fledged democracy, unlike many countries in the West which took years to give democratic rights to all sections of its people. He pleaded for grassroots local village democracies and planning from the village level.
 
The chairman, Social Work Research Centre, Sanjit Bunker Roy said: "It was been demonstrated that people without formal education, particularly women have become self-reliant and productive with the help of local technologies. We have successfully set up in different parts of the country – Barefoot Colleges – quite different from formal education system to disseminate and practice the traditional ways of life."
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India's island territories gear up for fishery, tourism
 
 
ASHOK B SHARMA
Posted online: Monday , January 14, 2008 at 0055 hrs IST
 
New Delhi, Jan 13 India's island territories namely, Andaman & Nicobar and Lakshadweep are planning development of fisheries and tourism to ensure livelihood of the people.
 
Tuna fish, being an important product for exports, has already engaged the attention of the island administration. Out of the estimated 148,000 tonne annual fishery potential in Andaman & Nicobar (A&N), about 64, 500 tonne are tuna fishes. Some initiatives are already underway like creation of one fishing harbour of global standard, identification of 850 hectare tsunami submerged land for shrimp culture, said A&N Lieutenant Governor, Bhopinder Singh.
 
Marine Products Export Development Authority (MPEDA) is preparing a project report for development of fishery infrastructure in the island territory. Plans are also afoot for creation of more fish landing centers, introduction of bigger and modern vessels and setting up of cold storage facilities in and around Port Blair for exports.
 
According to Lakshadweep administrator, BV Selvaraj, this group of islands located in the Arabian Sea has annual fish landing at about 11,000 tonne and there are proposals to double the catch by the end of the 11th Plan period. The island administration has taken up the ambitious projects like introduction of Mother vessel for collection from subsidiary vessels, cleaning and processing of fish in the ship. This would be the first of its kind in the country, he said.
 
This project is being implemented in consultation with Central Marine Fisheries Research Institute. The tuna canning factory at Minicoy is being revamped and plans are afoot to have border trade outposts at Minicoy for exports of canned tuna and cooked, smoked and sun dried tuna—masmeem—in packages.
 
While in A&N only 8% land is available for development and the rest being reserved or deemed forests, in Lakshadweep no food grain crop is cultivated.
Lakshadweep has, however, launched animal husbandry projects and has anticipated achieving 100% self-sufficiency in poultry meat and eggs.
 
Drinking water remains a problem in both A&N and Lakshadweep. A&N administration has proposed to the Centre for raising the height of Dhanikari dam, setting up of desalination plant, transportation of water from Rutland Island by laying submarine pipelines and creation of storage facilities at various locations.
 
In Lakshadweep one low thermal desalination plant is successfully functioning at Kavaratti and the island administration has proposed to the Centre to replicate it for other inhabited islands. It is also studying Maldives experience of sewerage disposal for suitable adoption. Lakshadweep is fully electrified and electricity is mostly generated through costly, polluting diesel generators. The island administration is planning to set up wind farms and turbines to meet power demand.
 
The strategic locations of both the island territories offers scope for tourism and security imperatives. It also calls for preservation of the existing natural environment. Northern most part of A&N is only 45 km away from Coco Islands of Myanmar and Indonesia is about 150 km from the southern most part. "A&N remains exposed to economic exploitation by foreign poachers of marine life and forest products," said Singh
 
A&N is a group of 572 islands, out of which 38 are inhabited. The turquoise blue sea, talc-like beaches, richness of tropical flora and fauna and multiethnic society presents an opportunity for booming tourism industry. However, uncontrolled migration from the mainland is leading to straining of resources.
 
As a measure to control migration identity cards have been issued to 80% of eligible population and a draft regulation on entry and residence in A&N has been sent to the Centre. The Centre has proposed to enforce the regulations after the next Census.
 
With a view to promote tourism, A&N administration has asked the Centre for more shipping and civil aviation links. It has also asked for modernization of dockyards, repairs of ships and vessels and setting up of modern ports at Kamorta, Katchal and Great Nicobar Islands, laying of optical fibre cable connectivity between Chennai and Singapore through Port Blair, promotion of hotels and resorts, upgradation of health infrastructure and augmentation of power supply.
 
Lakshadweep is better developed as compared to A&N in terms of education, public health and infrastructure. It is a group of 36 coral islands of which 11 are inhabited.
 
Embarkment facilities are being created at Kavaratti, Agatti, Amini and Minicoy and such facilities are prosed to be created at Kadmat, Kiltan, Chetlat and Bitra. Airstrip at Agatti is being expanded and mini airfields at Minicoy and Andrott have been proposed. Lakshadweep has attracted more than 25,000 tourists in 2006-07.
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Chhattisgarh seeks rice research institute
 
 
ASHOK B SHARMA
Posted online: Monday , January 14, 2008 at 0049 hrs IST
 
New Delhi, Jan 13 Chhattisgarh, which is one of the major centres of rice diversity in the country, has demanded setting up of a Central Rice Research Institute in the capital township of Raipur.
 
The chief minister, Raman Singh has drawn the attention of the central government, saying the state has a collection of nearly 19,000 varieties of rice germplasm, and this has been admitted by the National Bureau of Plant Genetic Resources and hence the state deserves a research centre.
Singh had said that though Chhattisgarh's staple crop was rice and it contributed about 16% to the central rice buffer stock, the per hectare yield of paddy was two-third of the national average and therefore the need for increasing yield.
 
He said that the process of hybrid rice seed production involved great risks, as the failure rates in the initial stages were quite high, and for this reason farmers were reluctant to undertake hybrid rice seed production. The existing centrally sponsored scheme has no provision of risk coverage for failure of production, he alleged.
 
The state government has demanded greater investment by the central government to harness irrigation potential. He also demanded speedy clearances and completion of irrigation projects. He asked the Centre to take up with the Supreme Court the issue of relaxing the conditionality of the additional cost component of net present value being charged for irrigation projects involving forest lands.
 
Singh pleaded for differential rates of farm subsidy for weak and developing states like Chhattisgarh, setting up of a Credit Guarantee Fund in Nabard to reduce perceived risk of default by small and marginal farmers, who do not have any collateral to offer, and setting up another Stabilisation Fund for automatic write-off of farm debt as outlined in the approach paper to the 11th Plan, and procurement of minor forest produces at determined support prices.
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Jharkhand seeks Rs 1k cr to renovate ponds
 
 
ASHOK B SHARMA
Posted online: Monday , January 14, 2008 at 0056 hrs IST
 
New Delhi, Jan 13 The Jharkhand government has demanded an investment of Rs 1000 crore (Rs 10,000 million) from the Centre for digging new ponds, renovation of old ponds and for fish seed production.
 
The state chief minister, Madhu Kora has pointed out the great scope for development of fisheries and said that his state has around 132,000 hectare of water bodies suitable for fisheries. Fish production in Jharkhand has increased from 14,000 tonne in the 9 th Plan period to 55,000 tonne in the 10th Plan period. However, the annual fish production is 1,430 kg per hectare as compared to the national average of 2,150 kg per hectare.
 
Jharkhand gets about 1300 mm annual rainfall. The rainfall over the region has become erratic with the climate change and the state lacks assured irrigation facility with only 22% of the net sown area covered under irrigation. Therefore, alternative sources of livelihood like inland fisheries needs to be explore, Kora said.
 
Kora has suggested augmenting water in Swarnarekha basin by forging linkages with South Koel river and Shankh river as well as linking of rivers – Ganga, Damodar and Swarnarekha.
 
He said that all ongoing irrigation projects under accelerated irrigation benefit programme (AIBP) in the state were roughly 25 to 30 years old. As a result there has been many fold increase in the original cost. On account of the delay in completion of old projects, six new projects under AIBP were not getting investment clearance. Consequently, irrigation potential of 41,000 hectare would not be created.
 
Even seven incomplete projects which fulfills the criteria for inclusion under AIBP are not being taken up under AIBP and as a result 127,000 hectare area of irrigation potential would not be created. Kora, therefore has suggested to Centre to relax the norms for Jharkhand.
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