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Curtain Raiser
AgriTech India July 2012
AgriCulture to AgriBusiness
Preparing Indian farmers for the shift Holland, Turkey, Italy & top 15 others offer technology models
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n offshoot of the fascinating saga of India’s transition from agriCulture to agriBusiness is the proliferation of mega expos to showcase the latest achievements in agriculture and allied activities. These mega events, undoubtedly, offer a win-win situation for all. They promote trade relations between countries, technology transfer and joint ventures, and what have you — in fact the whole host of cooperative activities and arrangements, the scope of which has been widening in the current pattern of world trade. Although WTO negotiations are not making much headway, free trade agreements among countries are becoming the order of the day.
Through this show, “we are trying to bridge the gap between farmers and suppliers of farm machinery and equipment, not only from India but also from countries like Holland, Turkey, Italy, Germany, China and Israel, as farm solutions in these countries are more user-friendly. Imports of such equipment and machinery into India are on the rise.” The success of Ratnagiri’s Agri Mart, Champion Agro Retail, DCM’s Hariyali Bazar and Godrej’s Aadhaar and ITC’s e-Chaupal are proven examples of a spurt in demand for farm equipments and machinery. They are launching new outlets and hiring the youth for sales and marketing to cater to increasing demand.
In India, the transformation in agriculture being showcased through expos is becoming the focus point for drawing delegations and trade visitors, thereby adding value to
Interestingly, African countries as also south Asian countries like Bangladesh, Sri Lanka, Nepal and Myanmar are following India’s lead and importing low cost farm
Indian agriculture, food processing and other employment-generation activities.
solutions from this country to boost their own farm mechanization and rural employment programmes.
Come August. The curtain goes up on India’s largest show – Agri Tech India and four other concurrent shows, India Foodex, GrainTech India, Dairy Tech India and Poultry & Livestock Expo – in Bangalore, bringing under one roof virtually all activities relating to agri business. This platform has been conceptualized by Media Today Group, dedicated to agri and food sector for the last two decades. Former Prime Minister H D Deve Gowda, an ardent champion of the farming community and agriculture development, is scheduled to inaugurate the three-day show on August 25. This would be the largest show “in terms of its wide sweep --- covering agriculture inputs, farm mechanisation, diversification opportunities, preand post-harvest management of food crops, value addition, food processing, marketing and retailing”, said S Jafar Naqvi, Chief Coordinator. A unique feature of the show is that it seeks to prepare the farmers to get ready to face future challenges by educating them to become agri entrepreneurs, food processors and exporters – a long journey from being mere farmers. Farm mechanization is one of the focus activities since it is increasingly gaining in importance in this country, as is evident in parts of south India and western India which are facing acute shortage of labor due to various reasons, specially rising enrolment in educational institutions and migration of youth to countries abroad in search of lucrative employment. In addition, the introduction of Mahatma Gandhi National Rural Employment Guarantee Scheme has further aggravated the problem of shortage of farm hands, with the result dependence on machinery for farm operations has become essential. “Besides, foreign companies manufacturing farm machinery and processing equipment view India as a potential market, since interest in farm mechanization and on-site value addition have escalated in this country of late,” said Naqvi.
A 150-member delegation of Commercial Agriculture Alliance from Nepal, comprising agri entrepreneurs, corporates and extension department officials, funded by Asian Development Bank and Nepal government, is visiting India’s largest agri-business show so as to source the material for their future plans. “The delegation has requested us to organize technical workshops and live demonstrations during our show,” says Naqvi. Another scheduled visit is that of a Sri Lankan delegation of over 20 officers, who are working for betterment of farmers and are committed to rehabilitation of farming community. AAFEX, an association of African agro exports, from countries like Senegal, Burkina Faso, Cameroon, Ghana, Madagascar and Mali, is sending its member delegation of agri entrepreneurs and food companies to explore joint venture and investment opportunities as also transfer of technology from India. The Netherlands is the partner country of this show, while the focus countries are Turkey and Italy, who are putting up big pavilions. In addition, there would be sizeable participation from 17 countries. As Mr.Henk van Duijn, Agriculture Counselor of the Netherlands Embassy, put it, “India is one of our important partners for us . . . Our strategy is to invest in India in local production facilities and enhance local capabilities through technology transfer. We believe we have to be in India to integrate the total Indo-Dutch trade chain.” What interests foreign investors in Indian agribusiness is an awareness of this country’s big potential to become a ‘Food Basket of the World’.
AGRI TECH INDIA In recent years much emphasis has been given by the Ministry of Agriculture on commercializing agricultural production in the country. Adequate production and distribution of food has become a high priority and global concern. In the fast changing world and increasing competition in a globalised economy, there is a need of exploiting the available resources at maximum level and use of best technologies available world over, to cope with domestic demand of food and also to target export market. This will be particularly relevant in South India, where farmers grow a number of crops, but have technical constraints in enhancing production and productivity because of inadequate exposure to high technology & inputs coupled with advanced production practices, logistics and marketing.
“The main thrust of this series is on taking Indian agriculture to greater heights of excellence through spread of latest technology and modern practices on-farm and off-farm that would cover pre- and post- harvest activities, marketing and exports” said Naqvi. GRAINTECH INDIA Indian agriculture is now going through critical times. On the one hand, relying on its strength of its Green Revolution strategy and having emerged an exporter of grains and food products, the government is keen to enact a Food Security law to ensure minimum food grains to every individual in the country as his or her own right. On the other hand, the weaknesses in the implementation of the strategy are showing up in a glaring manner. One latest such instance is the huge losses of procured food grains for want of proper storage facilities. The need of the hour is increased productivity of grains and building of an effective supply chain to ensure that what is produced in the farm reaches the consumer in good shape. In fact, what is imperative is to plug every loophole in the food production and distribution system, which means effective use of available technology. To feed increasing domestic demand and also to achieve the export targets of food products, Ministry of Agriculture, Ministry of Food Processing Industry and Agricultural and Processed Food Products Export Development Authority (APEDA) are investing a substantial share of the budget for promoting technological up-gradation and value addition in all segments of Rice, Wheat, Pulses, Oilseeds, Spices, Dairy & Feed and all other food sectors. INDIA FOODEX India ranks as the world’s largest milk producer with an annual output of 116 million tonnes. With an annual growth rate of 4%, India’s milk production accounts for 15% of the total global output. Constituting an important segment of the Indian rural economy, dairy and dairy products provide livelihood to millions of
homes in villages and ensure supply of quality of milk and milk products to people of both urban and rural areas. The accelerated socioeconomic development during the 21st century is throwing up challenging issues like food security, food safety, quality and their linkages with the national and international markets as the demand for food is increasing. Union Agriculture Minister has recently launched the ambitious Dairy Project named as “National Dairy Plan” Phase-I to increase the productivity of milch animals and provide more income to India’s 70 million small milk producers and upgrade milk processing plants in cooperatives and private sectors. With funds from International Development Association and Government of India, a total amount of Rs. 2242 crore (426 Million USD) will be spent in
this phase of the plan. POULTRY & LIVESTOCK EXPO India ranks first in having the largest livestock population in the world. Livestock plays an important role in the national economy and in the socio economic development by augmenting family incomes and generating gainful employment in the rural areas, particularly for the landless, small and marginal farmers and women. With its 1.2 billion population and 9% GDP growth rate, India is rapidly emerging as one of the biggest markets in the world. Livestock sector contributes approximately 4% to GDP and 27% to agriculture GDP. Poultry and dairy sectors are the major sectors contributing to economic development. The poultry sector has undergone a paradigm shift in structure and operation during the last two decades. It has transformed itself from a mere backyard activity into a major commercial activity with participation by big players as also successful implementation of contract poultry farming on a large scale. India is emerging as the world’s 2nd largest poultry market with an annual growth of more than 14%, producing 61 million tonnes or 3.6 percent of global egg production. The annual growth rate of egg production is 5-8%. Apart from this, India ranks 6th in broiler production (125 billion Rupees) with an annual output of 2.39 million tonnes of broiler meat, as per the estimates of the Ministry of Agriculture, Govt. of India. The total poultry industry is valued at about 350 billion rupees. The per capita consumption per year is approx 2.4 kg, which is much lower than the National Institute of Nutrition’s recommended 11 kg. With this unique combination of events, the expo has become India’s largest agri business platform where 50 per cent of displayed products are from overseas markets. This provides further proof of India’s emergence as one of the fastest developing agri economy.
AgriTech India July 2012
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AgriTech India July 2012
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s many as 14,004 farmers committed suicide in 2011 countrywide, the latest report of the National Crime Records Bureau has noted. The number is lower than the previous year’s figure of 15,933 but the dip might be much less considering that Chhattisgarh, which recorded 1,412 farmer suicides in 2010, claimed that there were no farmer suicides at all in the state in 2011.
Overall, the figures for the period 2004 to 2011 do show a declining trend in farmer suicides with the peak recorded in 2004 at 18,241. The total number of farmers who committed suicide during the UPA regimes at the Centre since 2004 now number 1.18 lakh. Gujarat, Karnataka and UP showed a rising trend of farmer suicides since 2004. Besides the well known farming crisis states, it is the figures from states like Assam that startle. The northeast state recorded 312 deaths in 2011 and 269 in 2010. One of the main causes of the suicides is debt and losses.
Cotton Association to stop trading
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Editor : Syed Jafar Naqvi Vol 3...... Issue 3 ...... July 2012
High input, labour costs force Kerala pineapple farmers to look to Sri Lanka
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armers behind India’s best known brand of pineapple in Kerala are looking to Sri Lanka for a new future, battered as they are by an unprecedented rise in labour and input costs. While shortage of quality suckers threatens to bring down acreage under cultivation by 25 to 30 per cent in the new planting season, the price of grade A raw pineapple touched a record Rs.30 a kg on Tuesday at Vazhakkulam, the town near Kochi by whose name pineapple from Kerala is known across India. The state produced about 3.25 lakh tonnes of pineapple last year from about 13,000 hectares under cultivation. The Mauritius variety of pineapple from Kerala has conquered the Indian market centres such as Delhi, Mumbai and other metros and smaller cities. Its popularity, as the best suited for direct consumption, won Vazhakkulam Pineapple the GI registration in 2009, giving the business here a major boost. Kerala fruit’s quality helped steal a march over its counterparts from West Bengal and Odisha, establishing it as a premium brand since the early 1990s. However, things have not remained rosy for the more than 2,500 farmers, says K. P. Kuriakose, a scientist with Kerala Agricultural University, who orchestrated the move to get GI registration for Vazhakkulam pineapple. A combination of factors, including changes in the climatic conditions, had hit the farmers, who had adopted the best of farm management and business practices, said Dr. Kuriakose. As a result, a hectare of pineapple farm now requires an investment of Rs.3.50 lakh. Production cost for the best quality pineapple is Rs.14 a kg, the price being pushed up constantly by rising spending on fertilizer and labour. Bank loans have become too costly. A skilled labourer charges Rs.500 a day. Price of potash has gone up from Rs.6 a year ago to Rs.18 a kg and the cost of 20:20 fertilizer mix has gone up from Rs.7 to Rs.19 a kg, says Baby John, president of Pineapple Farmers’ Association, which has a membership of 700 farmers with small and large holdings. These conditions have led the farmers to explore the possibility of migrating to Sri Lanka, where the production cost will be a quarter of that in Kerala. The soil conditions were fine and the government was willing to back the ventures,
As always, Maharashtra fared the worst, with 3,337 farmers committing suicide in 2011. This is worse than the previous year when the state recorded 3,141 deaths. The numbers show an abysmal story of how the special packages for the non-irrigated, chronically drought-prone areas such as Bundelkhand and Vidarbha seem to have delivered little to the most needy.
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Over 14,000 farmers took their lives in 2011
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he Cotton Association of India, earlier known as the East India Cotton Association, was the first to be given permission to launch cotton futures in 1997. This was after the then National Democratic Alliance Government decided to resume futures trading that had been banned since the late 1960s. Now, the association wants to get out of trading of any sort, be it futures or forward delivery. A resolution to this effect was passed by the Cotton Association of India (CAI) extraordinary general meeting recently. It was decided that CAI should be derecognised as a trading body. The emergence of a vibrant online platform for futures trading in cotton has led to lack of trading interest in the CAI platform. M.B. Lal, CAI board member appointed by the Forward Markets Commission and former Chairman of Cotton Corporation of India, said a resolution was passed for derecognising CAI as a trading body at a recent special general body meeting. The move will enable CAI to come out of the purview of the commodity market regulator, Forward Markets Commission. The association has not been able to register even a single trade for the last few years, according to data available on the FMC Web site. Besides CAI, the other single commodity regional exchanges that have not registered any trade include the Surendranagar Cotton & Oilseeds Association and Sangli-based Spice & Oilseeds Exchange , according to FMC data. The CAI and the Spice & Oilseeds Exchange are recognised as permanent members. It will now require the Ministry of Consumer Affairs’ permission for de-recognition. Earlier, the board had approached the Forward Markets Commission for de-
recognition, but was advised by the regulator to get the approval of the members at the general body meeting. CAI has about 400 members from the all segments of cotton trade and textile industry including mills, growers, ginners, brokers, merchants, importers and exporters. It was established in 1921 to facilitate cotton trade and regulate cotton futures in Mumbai. Currently, cotton futures are traded on online commodity exchanges such as the NCDEX and MCX. The Association played a pivotal role in development and promotion of cotton in India. In 1952, CAI was granted permanent recognition for conducting futures trading in cotton throughout the country until the ban. However, forward trading was allowed as Non Transferrable Specific Delivery contracts. The East India Cotton Association was renamed Cotton Association of India in August 2007. Members of the Association used to negotiate over phone and book their consignments in other cotton growing States such as Gujarat, Andhra Pradesh and Tamil Nadu. Seventeen regional cotton associations and four co-operative marketing societies representing all cotton producing regions are affiliated with the CAI and have representation on its Board as associate directors.
Concor, Horticulture Board starts ‘Onion Train’
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sources in the pineapple business said. Delegations of pineapple farmers from Kerala have visited the island country in two batches and are enthused by the conditions. However, said John, marketing will be a problem as Sri Lanka is a small country that already produces pineapple to meet its domestic demand.
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he National Horticulture Board along with the Container Corporation of India has flagged off an ‘onion’ freighter from Nashik to Kolkata. About 1,400 tonnes were shipped in 90 special containers, which have been designed to keep the agriculture produce dry and well ventilated. Traders are increasingly attracted to this mode of transport as their produce incurs minimal damage and saves time. Using the railway network, the onions can reach the hinterland faster. Since August last year, the NHB, along with Container Corporation of India (Concor) had been carrying out similar test runs for farm produce such as bananas and potatoes. The NHB, Managing Director, Bijay Kumar, said that the traders have given a good response to such exclusive freighters (or goods train). The Agra-Mumbai freighter carrying potatoes has been a hit and its capacity utilisation for both legs of the journey has been excellent. Given the response, NHB is now exploring the possibility of shipping more fruits and vegetables from Kolkata to destinations such as Guwahati, Jorhat and Tinsukia in Assam and Agra to New Delhi. Options are being explored for starting similar services between
Chennai and Kolkata to transport South Indian mangoes, said Kumar. The container design has been certified by Ludhiana-based Central Institute of Post Harvest Engineering and Technology. The interior of the container has a lining of foodgrade thermal insulation. Vents have been provided at the bottom and top of the container, which also has three doors for loading and unloading the cargo. The Director of National Agricultural Cooperative Marketing Federation of India (Nafed), C. Holkar, said the goods train has created a level playing field, as the Railways rule of booking 40 containers by one party does not apply to these exclusive trains. Small traders and farmers have taken individual containers and have shipped their produce to Kolkata.
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AgriTech India July 2012
Spices exports touch $2 billion, cardamom, chilli top items
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pices exports crossed the $2-billion mark in 2011-12, thanks to the phenomenal growth in cardamom exports in value and volume. “Cardamom, the queen of spices, is inching up to regain its lost position in international trade fetching more value and volume contributing to the upswing in spices exports,� said Dr A. Jayathilak, Chairman, Spices Board. He said that cardamom export registered phenomenal growth of 296 per cent in volume and 175 per cent in value aiding the spice export to increase nine per cent in volume and 43 per cent in rupee terms compared with previous year. The total spices export for the year stood at 5,75,270 tonnes, valued at Rs 9,783.42 crore ($2,037.76 million). The export marked a rise of 36 per cent in dollar terms. The domestic spice industry could realise its target for the year and the achievement is 115 per cent in quantity, 151 per cent in rupee value and 141 per cent in dollar terms, the Chairman said. According to Jayathilak, the record rise in exports of cardamom and sharp rise in the value of chilli exports contributed to a record achievement in spices export. Cardamom exports totalled 4,650 tonnes, valued at Rs 363.22 crore. A quantity of 935 tonnes of large cardamom valued Rs 68.30 crore was exported, up 21 per cent in volume and 53 per cent in value than the previous year. The UAE, the UK, Pakistan and Kuwait were the major importers of cardamom. Chilli export exceeded more than 40 per cent in value compared with the previous year though the increase in quantity is negligible.
The US is the main importer of Indian spices contributing to 16 per cent of total export value followed by China (9 per cent), UAE and Malaysia (six per cent), Saudi Arabia, Germany, Sri Lanka, Singapore and the UK (four per cent each). Mint and mint products, chilli, spice oils and oleoresins, pepper, turmeric, cumin, cardamom (small) and so on, were the key contributors in achieving the target, he said. Export of all the major spices such as pepper, ginger, turmeric, cumin, fennel, fenugreek, mustard, aniseed, ajwan seed, nutmeg and mace and so on, increased both in terms of volume and value. Export of mint products spice oils and oleoresins increased in terms of value whereas export of coriander, celery and garlic for the year showed a decrease both in terms of quantity and value.
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AgriTech India July 2012
AIREA calls for subsuming all taxes within GST
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IREA, in light of the new Goods and Services tax which is being introduced by the government, proposes that certain additional taxes levied by state governments must be subsumed within the GST. Taxes such as, • Purchase tax ------------------------ 4% • Rural Development Cess ------- 2%, • Mandi Tax ------------------------- 2% • PIDF --------------------------------- 3% The government’s policy of Zero terminal tax on Food grains gives the impression that the consumer is not paying any tax on food grains, while in fact over 11% tax is already embedded in the product which is not visible to the final consumer. Unlike Punjab, Haryana and other states, Delhi, does not impose all these taxes (imposes only Market Fees of 2%). This and non inclusion of the aforementioned taxes into the GST gives an opportunity of channelizing money away from the tax stream, in other words encourages malpractices which neither helps the farmer nor consumer. It is for these reasons that paddy must enter the GST chain as soon as it leaves the farmer. The primary concern of states is that the tax they will receive under GST will be lesser than
that under the current tax regime. This worry is unfounded as a calculation performed shows that not only does the tax to the State increase, but the price impact at retail point remains unaffected. The tax generated by 1000 metric tonnes of rice under the current tax regime is Rs1861 whereas the tax generated on the same quantity of rice if Purchase tax, MDF, RDF, PIDF, Auction Charges are subsumed into the SGST would be Rs2114.41 . This reflects an increase of 13.69% on the current tax regime. With GST, the Centre will get a new and additional tax stream from the distributive chain of food grains within the state. Therefore the Centre can either transfer the CGST portion received within the state to the State (as in currently does in the case of CST) or it can be the pool from which the Centre can compensate the State in the very remote possibility of a drop in overall revenue collection. This will more than compensate the states for the SGST credit they will be offering to the importing state to allow for a seamless set off in that chain of transactions. Agreement on this matter between Punjab, Haryana and UP will show to the world that three different states ruled by three different political persuasions can come together for the good of the aam aadmi.
DASF organizes Organic Mela at Dilli Haat Meanwhile, Centre has formed an expert committee to frame a policy for periodic checks to detect pesticide residue in vegetables and fruits. This was in response to an NGO report that claimed that 35 varieties of vegetables and fruits picked from Delhi markets had high doses of banned pesticides Union agriculture ministry had in 2010 found residue of the dangerous pesticides in veggies in Delhi markets. It found Cypermethrin in lady’s finger and cabbage, and Chlorpyriphos in cauliflower and cabbage
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any farmers, agricultural scientists, consumers and RWAs took part in a weekend Organic Mela at Dilli Haat organized by Delhi Alliance for Safe Food. The mela was part of a series of events to be observed under ‘India for Safe Food’ campaign against pesticide residues in food. The campaign will send petitions to Union agriculture minister, Sharad Pawar demanding toxic-chemical free food for all. Hukum Chand Patidar, an organic farmer, who came to showcase his skills at the mela, said, “I was a conventional farmer till 2004. That year something dramatic happened in my farm. Many peacocks and animals at the farm started dying. I realized it was the pesticide that may have poisoned them. I was using a lot of monocrotophos which is very toxic for birds, and Endosulfan. I felt very guilty and the event completely changed the course of my work”. Customers thronged to the stalls at the mela, but most said that organic products are expensive. “We are very concerned about pesticide residues and their health impacts but organic food is not as easily available. It’s also expensive. The government should subsidise organic produce” said a visitor. However, member organizations of Delhi Alliance for Safe Food said there is an increase in demand for organic food in Delhi. “The demand has gone up in the past few years. Globally the organic market is growing at over 300%. Even in Delhi, it’s not a niche segment anymore,” said Ajay Mahajan, a member of the alliance and of Beej Bachao Andolan.
Study by Hyderabad-based National Institute of Nutrition found that many vegetables had residues of 18 pesticides, of which five were present in all the samples analyzed. Banned pesticides like aldicarb and highly toxic ones like monocrotophos were found in the samples. The campaign for toxic-free food reached Delhi after rallies and marches through parts of the country. Toxicity in food is a growing concern among consumers in response to which several activists have come together to launch a campaign against the negative impact of chemical farming. They are advocating a conscious shift towards ecological farming through their ‘India for Safe Food’ campaign. Campaign convenor Kavitha Kuruganti of the Alliance for Sustainable and Holistic Agriculture said: “Of the top 15 mostconsumed pesticides in India, 11 figure in the list of 67 globally-banned pesticides put out by the Indian government,” “The government must invest in ecological farming, ensure access to organic food by establishing safe food outlets, provide safe foods under various schemes to pregnant and lactating women and children and ban pesticides with chronic adverse impacts that have been banned in other countries,” she added. “Studies indicate that in India, vegetables, fruits, staple cereals and pulses, meat, milk, eggs and poultry, in addition to drinking water and processed foods/beverages, are contaminated with poisonous residues in various degrees. Our export consignments are known to have been rejected for their toxic residues. There are fundamental ways in which the issue has to be addressed — by changes in our technological approach to agriculture as well as in our regulatory mechanisms,” pointed out Hyderabad-based activist G.V. Ramanjaneyulu. The nation-wide mobilisation campaign will have a public outreach mainly through online mobilisation using the website (indiaforsafefood.in), missed calls action (0223301 0031) and cyber-action through e-mails.
IFFCO witnesses drop in non-urea fertilizer demand
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FFCO, the country’s largest fertiliser maker, expects a 25-40 per cent drop in demand for non-urea fertilisers in the current year. This is mainly on account of the recent hike in prices of non-urea complexes such as di-ammonium phosphate (DAP) and others, prompted by the falling rupee and a weak demand due to scanty monsoons. “The DAP off-take is 50 per cent down so far. Even if the rains improve, we will see a demand destruction of at least 25-40 per cent,” said Dr U.S.Awasthi, Managing Director, IFFCO. The co-operative, like other private sector fertiliser makers, has increased the maximum retail price of DAP to Rs 24,000 a tonnes from June 1, to offset the impact of a falling rupee. “The weakening rupee is the biggest challenge faced by IFFCO. Each 10 paise fall in the rupee against the dollar has an impact of Rs 45 a tonne for DAP,” Dr Awasthi said. The rupee has tanked by about 26 per cent against the dollar since April 2011 till date. Since the beginning of current financial year, the rupee has fallen by 12.7 per cent. The sluggish off-take in the ongoing kharif season has prompted IFFCO to reduce manufacturing of DAP by about 25 per cent. The imports of DAP have been stopped since January this year. Despite this, our stockyards
are full, Dr Awasthi said. Stating that there is enough DAP stock to meet the current kharif sowing demand Dr Awasthi said, “Farmers should look for stocks with earlier prices of Rs 18,000 a tonne printed on the bags before purchasing the new stocks”. The co-operative through its member societies is creating awareness among farmers in this regard, he said. The widening gap between urea and nonurea fertiliser prices would lead to imbalance in application as farmers would prefer to use the cheaper urea, Dr Awasthi said. Urea prices currently rule at Rs 5365 a tonne. IFFCO expects the urea sales to continue to grow by 3-4 per cent this year, Dr Awasthi said.
Kerala farmers resume growing jackfruit
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few farmers at Miyapadavu village in Kerala’s Kasargod district wasted around 1,000 jackfruits last year. Not this time. Another bunch of farmers at Vittal in Dakshina Kannada district even shipped a truckload of jackfruit to Mumbai recently. This was unheard of last year. Once a neglected crop, jackfruit is now being recognised by farmers and consumers alike for its utility. Shree Padre, the man who gave jackfruit some much-needed respect in society in the recent years, said that awareness about jackfruit has been a slow development, over the past one decade. Dr D.C. Chowta, a progressive farmer from Kasaragod taluk of Kerala, said that a group of farmers at his Miyapadavu village has begun supplying raw jackfruit to makers of chips. The edible parts removed from the whole fruit are being packed and marketed locally. “Now, we are getting queries from the nearby villages too”.
The processing of jackfruit is an art in patience as the gum latent in the whole fruit makes the process of removing its edible parts a bit tedious. That is the reason why readyto-eat and ready-tocook edible parts, as done by Miyapadavu villagers, are in great demand, he said. Venkatakrishna Sharma, a farmer from Vittal area of Dakshina Kannada, said that the recent despatch of jackfruit to Mumbai is a culmination of efforts of some like-minded farmers. These farmers met last year, and selected a few good varieties of jackfruit in the region. Some of these selected varieties were sent to Mumbai recently, he said. Padre said that the key is to utilise this “wonderful” food source properly. More and more jackfruits, that were allowed to rot earlier, are now reaching the dining table. “Though farmers are getting income from this fruit, it is not adequate. I believe that the countdown for jackfruit development has begun,” he said.
World’s first GM dairy calf to give lactose-free milk
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hinese scientists claimed to have bred genetically modified cows that can produce much healthier milk than the ordinary livestock for human consumption. In two separate breakthroughs, researchers at the Inner Mongolia University revealed that they have successfully created a calf whose milk could be drunk by people suffering from lactose intolerance and a second animal whose milk contains high levels of “healthy” fat found in fish. The genetically modified cows are part of an effort by scientists to make dairy products healthier, but critics have reacted angrily to it and questioned the safety of milk from genetically modified animals. In one research, a group of scientists injected genes, which causes lactose to break down into other types, into cells from cow embryos. They created 14 embryos and implanted them into the wombs of surrogate cows. Five calves were born in April this year and three were found to carry the genes needed to create low-lactose milk, although two of them died within 24 hours of birth. One of the calves, named Lucks, a modified Holstein dairy cow, was “healthy and strong”. They will conduct tests on her milk once she starts lactating to assess exactly how much lactose the milk contains. Dr Zhou Huanmin, Director of the Key State Laboratory for Biomanufacturing at the University, said they hope to create herds of low-lactose cows that
would eventually produce new types of dairy products to be sold in shops in between five to ten years time. “Ordinary milk contains lactose, while milk produced by our modified cow will have relatively low-content of lactose, or even have no lactose. We hope to commercialise it in the future,” Dr Zhou said. In a separate research published in journal of Transgenic Research, another group at the Inter Mongolia University has created a genetically modified cow that has high levels of omega-3 fatty acids, which protect against heart disease and improve brain function, in its milk. Using cloning technology, the team introduced a gene from roundworm into cow embryos. The genetically modified cow was then allowed to mature and give birth to its own offspring before tests were conducted on its milk.
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AgriTech India July 2012
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Govt. admits lack of storage for foodgrains, poor to get 5 mt grains
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ore than 6.6 million tonnes of wheat meant for the public distribution system, is lying in the open, running the risk of damage from rain, Minister of State for Food and Public Distribution K.V. Thomas admitted. The government’s priority was to evacuate the wheat, he said. Faced with a problem of plenty, the Food Ministry wants to limit grain procurement to the needs of the public distribution system. It also wants Rural Development Minister Jairam Ramesh to include construction of medium-
capacity godowns in the national rural employment guarantee scheme to augment the grains storage capacity. “We are concerned about 6.6 million tonnes of wheat kept open in an unscientific way, mainly in Punjab, Haryana, Madhya Pradesh and Rajasthan. We will give utmost priority to move the wheat to safety during monsoon,” Thomas said at a press conference. The Minister is closely monitoring the progress of monsoon, firstly to ensure that all grains are stored in a safe and secure manner and, secondly to assess if, looking in to the storage constraints, the Ministry should allow wheat export on government account, as was being envisaged. This would have been in addition to the recent decision to offload 8 million tonnes for the PDS and in the open market. Thomas wrote to Prime Minister Manmohan Singh recently, seeking a policy to limit procurement of grains for the central pool as per the requirement. The Minister’s SOS comes in the wake of record procurement of grains this year with requests still pouring in from the wheat producing States urging the Food Corporation
of India (FCI) to purchase more. The central support price for procurement of wheat this rabi is Rs. 1285 a quintal. “Normally, we procure 25 per cent of mandi arrivals. This year we have procured almost 35 per cent and are still receiving requests because of the producing States,’’ he said. Unscientific For now, the government has stocks to the tune of 82.3 million tonnes, against a storage capacity of 64 million tonnes. Of the 50 million tonnes of wheat, 27 million tonnes are kept in the open under the Covered and Plinth (CAP) method, of which 6.6 million tonnes are stored in an “unscientific way.’’ As a contingent measure, the FCI has been directed to raise the stack size in case of both wheat and rice. “This way, the FCI would be able to accommodate 5-10 lakh tonnes more stock,’’ the Minister said. As part of an Action Plan drawn up by the Food Ministry, the FCI had been directed to hire private storage space, including those of cooperative sugar mills, and the States directed to go in for creating intermediate storage capacity with funds from the Rural Infrastructure Development Fund. The Minister pointed out that although the storage capacity of the FCI had increased by 40 per cent in last five years, there was storage deficit, as the government procurement reached an all-time high following a record output of wheat and rice for the last two consecutive years. It is expected that an additional storage capacity of 4 million tonnes will be made available this year. Poor to get 5 mt grains Grappling with the storage problem, the government has decided on an additional allocation of 5 million tonne of grains to belowthe-poverty-line (BPL) families and sale of 3 million tonne of wheat to bulk users, involving a total subsidy of over Rs 10,000 crore. The decision, taken by the empowered group of ministers (EGoM) headed by Finance Minister Pranab Mukherjee, was in line with the recommendations made by the C Rangarajan panel constituted a couple of month ago to look into the proper management of excess grains.
Nagarjuna Agrichem opens R&D Centre, eyes Africa for exports
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agarjuna Agrichem, an arm of Nagarjuna group, is planning to sell its crop protection products in the developing countries with a focus on Africa. “We are planning to replicate the business in markets abroad,” said K.S. Raju, Chairman of the group. Talking to reporters after inaugurating the Rs 25-crore R&D centre at Shadnagar in Mahaboobnagar district, he said the company would also expand its retail distribution network by 20-25 per cent next year to expand the reach from the 9,000-retail outlets it had. V. Vijay Shankar, Managing Director of Nagarjuna Agrichem, said the company was targeting to cross the Rs 1,000-crore turnover mark in the next two years from Rs 650 crore in 2011-12. Of this, the company earned twothirds from domestic sales and the remaining from exports. All the exports were contract manufacturing of chemical products for multinationals. “But we would like to sell our products to farmers abroad. We have begun this activity in Africa in a small way. We have identified cost-effective molecules for this. We are in talks with some multinationals in this regard,” he said. But the tough challenge the company faced is profitability with a poor margin of two-three per cent against the industry norm of five-six per cent. “We have revamped the management structure and trying to bring in measures to improve operational matrix. We hope to see improved profit before tax numbers this year,” he said. The company was planning to focus more on paddy, cotton and vegetables. “We are in talks with two international firms for tie-ups to launch new products,” he said. NACL is also planning to increase its profitability margins to 5-6 per cent from the present 2 per cent, and is working on developing cost-effective processes for generic molecules and some of the products coming out of patent in the next few years. K. S. Raju said that the company planned
Nagarjuna Group of Chairman K. S. Raju (right) addressing a press conference in Mahaboobnagar near Hyderabad
to expand its market in developing countries, especially in Africa. Herbicide and fungicides were the growing areas. Labour shortage had helped increase the demand for herbicides, Raju said. “We are planning at increasing our contract manufacturing by 10 per cent. We can achieve this by improving our productivity without having to invest in expanding capacities,” V. Vijay Shankar said. The R&D centre has been established at a cost of Rs.25 crore and is expected to help develop cost-effective processes for the manufacture of active ingredients and the intermediates for herbicides, insecticides, fungicides and to develop new formulations of pesticides. The centre has 25 scientists and chemists and is headed by senior scientist B Saha. The existing R&D facilities at Srikakulam would be integrated with this facility to create a centralised R&D centre. The company was also setting up an OECD (Organisation for Economic Co-operation and Development)accredited good laboratory practices (GLP) lab at the R&D centre, Raju said. Mark Your Dates & Visit
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“The EGoM also allowed the carryover of unlifted one million tonne of grains in this fiscal out of the 2 million tonne allocated to abovethe-poverty-line (APL) families in 20011-12,” said Food Minister K V Thomas. The government sells wheat to BPL families at 4.15 a kg and the price for APL families is Rs 6.10 per kg. Similarly, it sells rice to APL and BPL families at Rs 8.30 a kg and Rs 5.65 a kg respectively. The government will sell wheat to bulk consumers at a uniform price of Rs 1,170 per quintal exclusive of taxes across the country. “It is likely to incur a subsidy of Rs 2,000 crore which includes the freight cost,” sources in the food ministry said. The decision is likely to provide respite to the food ministry which is grappling with the storage problem. Warehouses are choked with more than 82 million tonne of rice and wheat as against the storage capacity of 63 million tonne. According to government rules, the strategic and buffer stock of grains in the country by June 30 should be at 31.9 million tonne, which includes 26.9 million tonne as buffer stock with a 5 million tonne strategic reserve in addition. During 2011-12, the government allocated around 500 lakh tonne of foodgrains for poor families covered through ration shops. India had a record rice and wheat production in the 2011-12 crop year (July-June) which led to a bumper procurement and record stocks in government godowns. “By clearing the excess stock, the food ministry will be able to create some space for new crop. We will be able to protect grains stacked in the open before the monsoon covers the entire country,” said a food ministry official. Stocks for PDS The Union Food Ministry has asked the State Governments to lift foodgrains stocks that would help them meet their public distribution system requirement for six months. This would create intermediate storages to bring down
stock holding in the Central pool, according to the Union Minister of State for Food and Public Distribution, Prof. K.V. Thomas. The Ministry has also waived the freight component of the foodgrain price under the Open Market Sale Scheme. These measures are aimed at bringing down the bulging buffer stocks that are over 82 million tonnes. Exports will also be stepped up with shipments targeted at Iran and Iraq. However, ‘Karnal bunt’ infestation is a concern, he said. Addressing media persons at a seminar on food safety standards, Prof Thomas said that the Group of Ministers overseeing food has decided to allocate an additional 50 lakh tonnes of foodgrains, mainly rice and wheat, for the below-poverty-line segment under the public distribution system. The normal allocation will be around 550580 lakh tonnes for the public distribution system, he said. The decision follows the huge build up of stocks and the anticipated high production during the current year. Current buffer stocks with the Food Corporation of India are three times the mandatory holding norms , the Minister said. During the current year wheat production is estimated at about 90.23 million tonnes with procurement estimated at 37. million tonnes for the public distribution system. Rice production will be over 103.4 million tonnes with procurement at about 35.31 million tonnes. The Minister said that storage losses have been cut to about a fraction of a percentage, less than one lakh tonnes out of the total stock. Five years ago, the loss was estimated at about 2.5 per cent of storage. One area of concern is the 6.1 million tonnes of wheat stored in the open – ‘ kachaa’ storage – without adequate protection. This was a concern in new wheat growing areas such as Madhya Pradesh, Uttar Pradesh, West Bengal and Rajasthan, he said. The food subsidy for the year is estimated at about Rs 88,000 crore. The economic cost of procurement of rice, for instance, is about Rs 21.10 a kg. But the Central Government supplies it to State Governments for Rs 5.65 a kg for supply over the public distribution system to the population below the poverty line. The Centre subsidises rice by Rs 18.50 a kg, he said.
Govt okays export of 2 MT wheat due to lack of storage
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o make storage space for fresh crop, the Government on July 3 cleared the export of two million tonnes of wheat from its buffer stock. The decision comes in the wake of reports of rotting food grain as Government godowns overflow with a record 82 million tonnes of rice and wheat against the storage capacity of only 64 million tonnes. Speaking to reporters after the meeting of the Cabinet Committee on Economic Affairs (CCEA), the Union Food Minister, K.V. Thomas, said “CCEA has approved export of two million tonnes of wheat from Government stock with floor price of $228 (about Rs 12,400) a tonne.” It was also decided to immediately allow 90,000 tonnes of wheat export from the bids received by the Government-run trading company, STC. For the remaining quantity,
the CCEA had decided to set up a Committee headed by the Commerce Secretary. Although the Food Minister said that there was no subsidy or losses in wheat exports, sources said the export of 2 million tonnes of wheat would involve an outgo of Rs 1,263 crore. India, the world’s second largest wheat producer, had harvested 90.23 million tonne in the 2011-12 crop year (July-June). This has lead to record procurement of nearly 38 million tonnes so far this year. In September last year, wheat exports through private trade had been allowed. Since then about 1.3 million tonnes have been shipped.
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AgriTech India July 2012
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Monsoon, come soon!!
Prayers, predictions & preparations so far recorded a rainfall 2 per cent more than the normal. Besides the forecast for further advancement of the system in some more parts of central and northwest India, the IMD on June 29 predicted that rainfall will occur at a few places in the south interior peninsula in the beginning of July. Global Condition & Cyclonic Circulations Two cyclonic circulations sprung up over the Bay of Bengal as a third showed up along the same latitude to the west, over north-east Arabian Sea on June 29. Together, they are expected to oversee a brief monsoon rally over mainland India. These good tidings materialised as a competing tropical storm “Doksuri” in the East China Sea weakened and was close to a landfall over the southeast China coast. But predecessors “Mawar” and “Guchol” had gone on to become intense typhoons in the northwest Pacific and ‘Talim’ stayed on for longer than thought. Global forecasts, however, suspect that the emerging monsoon rally could get disrupted soon, when flows over the Arabian Sea would start weakening. This is being attributed to the likely formation of yet another cyclone (typhoon) in the northwest Pacific. The Climate Prediction Centre (CPC) of the US National Weather Services has put the ocean basin for cyclone formation watch during July 4-10. None of the models are sure if the Bay of Bengal would throw up a weather system capable of sustaining the monsoon current into the plains of northwest during this period. Still, the CPC feels that parts of southern peninsula would witness some rainfall due to ‘intraseasonal variability’ in weather conditions. It is being seen as a “perturbation” of an enhanced rain wave upstream over Africa. States asked to have contingency plans With the southwest monsoon playing truant in northeast and central India, the Centre has asked States to be ready with alternative crops that are hardy, and can withstand dry conditions. There are reports that in some north-western States, farmers have slowed down sowing, in the hope that the monsoon will arrive or revive in the first week of July. So far, 74 per cent of the country has received deficient rain since the onset of southwest monsoon on June 5, raising serious concerns in the farming community. Already, there
is apprehension that there will be a shortfall in kharif oilseeds, coarse cereals, pulses, and cotton. Even sugarcane may be hit in parts of the country. Parts of Karnataka have reported wilting of oilseed crops. Union Agriculture Minister Sharad Pawar, who is monitoring the situation, has asked Karnataka and Maharashtra to be ready to put into action Contingency Plans, if the monsoon doesn’t revive early next month. In its advisory issued to the states, the Centre has asked states that have been worst-hit, such as Madhya Pradesh, Rajasthan, Gujarat and parts of Karnataka and Maharashtra, to arrange for alternative seeds, and for their quick movement. Farmers in some irrigated areas like Punjab and Haryana have been advised to give protective irrigation to paddy nurseries. Sowing of paddy is late in picking up in the two states. However, paddy cultivation is normal in the north-eastern region that is receiving good rain. However, ‘to sow or not to sow’ is the dilemma being faced by farmers in parts of northwest, central, and southern India that are facing deficient monsoon. The Agriculture Ministry has told States they needn’t panic. There is still time for sowing coarse cereals and short-duration variety of pulses. Normally, sowing is done through July till early August, but the concern is to water the crop that has already been sown. Admitting
Pawar remains positive despite fears due to scanty rains
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he Government played down fears of a poor monsoon with the Agriculture Minister, Sharad Pawar terming the situation “not that serious.” Yet, the 31 per cent shortfall in rains so far has delayed sowing of key kharif crops such as rice, oilseeds and pulses. “By and large, the position is not bad, as sowing goes on up to first week of August. There is still ample opportunity to cover up the gap seen today,” Pawar said. Citing the India Metrological Department forecast, Pawar said rains were expected to be good in July and August. The country receives about 70 per cent of its yearly rains in these two months. Sowing is complete in about 9 per cent of the normal kharif area, Pawar said. The planting of early sown crops including maize, jowar and bajra in Maharashtra, Karnataka and Rajasthan has been delayed by the scanty rains. The Minister said that
states have been told to prepare a contingency plan to deal with any further delay in the monsoon. States have been asked to keep ready seeds of pulses and oilseeds to be distributed to farmers to take up sowing of alternative crops in the event of delay in rains, Pawar said. “The situation provides for an increase in the area under pulses and oilseeds,” Pawar said. India’s imports of edible oil and pulses accounted for more than Rs 50,000 crore in 2011-12. The Government has been trying to increase domestic production through various initiatives including higher support price. He said rice has been sown on 3.96 million hectares so far, marginally higher than the normal area but less than the previous year’s coverage. “The overall situation in rice is not worrisome,” he said. Coarse cereals have been sown on 1.4 million hectares, pulses on 40 lakh hectares and oilseeds on 1.08 million hectares, he said. The country had ample foodgrain stocks, almost more than twice the buffer norms thanks to record output last year. As of July 1, wheat stocks with the Government stood at 50.1 million tonnes against the buffer norm of 21.2 million tonne. Similarly, rice stocks stood at 32.1 million tonnes against the norm of 11.8 million tonnes, Pawar said. The Minister said the reservoir position was marginally higher than the normal storage capacity, but lower than last year levels. Water storage in reservoirs is 63 per cent of last year and 103 per cent of the normal storage. Pawar said the storage is lower than normal in Maharasthra, Karnataka, Kerala, Himachal Pradesh and Jharkhand.
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to “concern building up,” senior officials of the Ministry said consumption of phosphatic and potassium fertilizers has come down by approximately 28 per cent. Cultivation of crops such as paddy, pulses, and oilseeds, which normally begins from April, hasn’t gained momentum. Even pre-monsoon showers were scanty this year. A meeting of the interministerial Crop and Weather Watch Group noted that sowing of rice, coarse cereals, pulses and oilseeds is lagging this year compared to previous years. Maharashtra’s distress plan The Maharashtra Government has already drawn up a contingency plan.Under the plan, farmers would be advised to switch to crops that require less water and can withstand dry weather. Agriculture Commissioner Umakant Dangat said that the monsoon situation is definitely worrisome. Of the total Kharif area (132.34 lakh hectares), sowing has been completed in just 10 per cent of that area. The plan, which has been prepared in consultation with agriculture universities, would be implemented with the help of agriculture extension services, the commissioner said. As per the plan, in the Marathwada region, farmers could sow seeds of cotton, jowar, bajra, soybean, sunflower, pigeon pea (tur dal), sesame, and sunflower between July 8 and 15. They should avoid crops such as groundnut, green gram and black lentils. Between July 16 and 31, they could also sow castor seeds. However, sowing of cotton, jowar and ground nut should be avoided. In the Vidarbha region, farmers should sow 20 per cent more seeds of cotton per acre. While planting, precedence should be given to early flowering seed varieties, said the plan document. Sowing gets delayed, paddy acreage shrinks Deficit in monsoon has already hit the sowing of kharif food crops such as paddy, pulses and oilseeds, triggering concerns in several quarters. However, the acreage under cash crops such as cotton and sugarcane has seen an increase, with a pick-up in sowing of the fibre
crop in Andhra Pradesh and Maharashtra last week. The acreage under paddy is down 35 per cent at 30.72 lakh hectares so far, against last year’s 41.51 lakh ha for the period. The area under total pulses is also down by over a third with all major growing States reporting a lower area. “We were expecting a 3-5 per cent increase in oilseed acreage this year as prices were good last year. However, with the delay in rains the acreage is unlikely to expand and the yields may be impacted,” said B. V. Mehta, President, Solvent Extractors Association of India. The oilseed acreage is down by 17 per cent so far, with key producing States such as Gujarat, Karnataka, Andhra Pradesh and Maharashtra reporting lower area. Acreage under groundnut is down by over half at 3.18 lakh ha against 6.39 lakh ha in the corresponding period last year. However, the area under soya bean is marginally up at 6.29 lakh ha against last year’s 4.58 lakh ha. Other oilseeds like sunflower and sesamum have also reported a drop in area. Interestingly, the cotton acreage has gone up by 2.3 lakh ha at 31.37 lakh ha so far. “The area is picking up and the delay in rains is not much of a concern. However, there would be decline in acreage of about 10 per cent as farmers are switching to more lucrative crops like guar in North India” said Dr K. R. Kranthi, Director, Central Institute of Cotton Research, Nagpur. Last year, the cotton acreage registered an alltime high of 121 lakh ha. MGNREGS workers to get more in case of failed monsoon As the monsoon rains continue to play truant over much of the country, concerns about the fate of India’s rain-fed agricultural sector this year means that lakhs of farm labourers could be forced to look for other options. Anticipating an increase in demand for the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) jobs this season, the Centre has indicated its willingness to sanction additional funds – to the tune of an extra 25 per cent – for the scheme. In a letter to all Chief Ministers on June 29, Rural Development Minister Jairam Ramesh asked all States to prepare for the effect of the poor rains on the MGNREGS demand. “The Ministry would be open to revision in the labour budget for current year required to meet this increased demand (for employment due to lower rainfall),” said the letter. “I also wish to assure you that funds are not a constraint under the MGNREGS. Adequate funds have been released to the State authorities and subject to submission of utilisation certificates, additional funds can be released.”
Cultivating prosperity
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t’s not always your day if you are a farmer. No wonder, agriculture isn’t looked at as a lucrative option since rub of the green seldom goes in a farmer’s favour. However, an out-of-the-box thinking can help farmers reap rich harvests and this is what has happened to this group of farmers in Maan, Hinjewadi near Pune. Abhinav Farmers’ Club, dedicated to floriculture and exotic vegetables, has revolutionised traditional agriculture through direct marketing by doing away with middlemen. Dnyaneshwar Bodke, interior decoratorturned-farmer, sowed the seed of this club after he saw a number of farmers mortgaging their farms against loans to manage their households. He started pursuing them not to sell away their land but make the most of it. Focussing on floriculture and exotic vegetables, the group started understanding a thing or two about marketing their products. From a humble beginning, things gradually changed for better. The process hasn’t been a smooth sailing, says Bodke. “It was tough to convince farmers and I had to be very patient. I observed that all of them used to sell their products to agents in market and were totally clueless about prices. Things turned worse when they couldn’t recover even the production cost. This made us realise the need for forming a group.” To understand market logistics, Bodke decided to market agricultural products directly instead of relying on the middlemen. “Many farmers had burnt their fingers in the traditional market set-up. I decided to take the lead. A decade ago, many retail chains were coming up with departmental stores and I started meeting people in the business. They agreed to purchase vegetables and fruits directly from us and pay 30 per cent more than the production cost. However, there were limitations as their payments would come after
three months. After that, we started supplying the stuff to hotels and understood the entire marketing chain. Now, eateries buy vegetables from us in bulk.” Organised farming has helped farmers in not only clearing debts but also earning handsomely, claims Bodke. He says that every farmer in the group earns around Rs 1,000 a day. “There are farmers who earn Rs 8,000 to 10,000 a day. Of course, we work by the sweat of our brows. It’s a tough day from 7 am to 8 pm and still we have no complaints. We are ready to work harder. All we seek is a fair deal.” Emphasising on organic farming, the group focuses 70 per cent on floriculture and the rest on exotic vegetables. “Pune, Bangalore and Delhi are our main markets for flowers. We also tried our hands at floral decorations in IT companies but we didn’t get expected returns. We have handed over packing of vegetables to a female self-help group to help them in their enterprises.’’ Today, Abhinav farmers’ club has 250 members in Pune and 75 groups in Maharashtra, Gujarat and Madhya Pradesh. According to Bodke, farming is a lucrative option. “It is an essential commodity and will never lose its importance. Educated youth should take to farming. Technology should be more efficiently used. From government, we expect better connectivity, transport, power supply and clean administration. Our fundamental aim is to make farmers self-sufficient,” he concludes.
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AgriTech India July 2012
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Potato prices go up without benefiting farmers
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fter plunging to record lows last year, potato prices have been spiralling up since February, thanks to an estimated 25 per cent dip in production. The production is estimated to be around 32 million tonne against the initial estimate of 43 million tonnes this year, market sources said. The wholesale price of the tuber (Jyoti variety) has jumped to Rs 1,260 a quintal from Rs 200-250 in end-December. The drop in
production is mainly on account of blight in certain potato-producing States such as UP and lower-than-anticipated rains in Karnataka, said Ms Vedika Narveker, Senior Research Analyst at Angel Broking. According to Patit Paban De, member, West Bengal Cold Storage Association, a number of farmers have, like Lufthar, scaled down their cultivation this year. There has been 8-10 per cent decline in the area under potato in Bengal this year. Farmers have been holding onto their stock in anticipation of higher prices. This has created a demand-supply mismatch, thereby pushing prices up further. “The release from cold storage is lower by 3-4 per cent as farmers and traders are holding onto their stock,” De said. The ensuing rains will spur demand, pushing up prices further, said Mahendra Swarup, President, Federation of Cold Storage Association.
Bengal potato farmers opt for premium variety for greater profit
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urt by the steep price fluctuation in the mass variety of potatoes (Jyoti variety), farmers in West Bengal are taking to the production of Chandramukhi – a premium category of the tuber – to earn steady returns. While the price volatility has forced farmers to enter into contract farming arrangements with various companies such as Pepsico for the production of Atlanta and Chipsona; it has also led farmers to increase the area under cultivation and the production of the Kufri Chandramukhi variety. The lower volatility and higher price realisation backed by a steady growth in demand for “Chandramukhi” among urban consumers is driving the rise in production, industry insiders suggest. “Last year, when the prices of Jyoti nosedived to Rs 200 a quintal on account of
bumper production, that of Chandramukhi ruled around Rs 600 due to the steady demand. Even when prices of Chandramukhi show signs of decline, the rise in demand pushes up the prices,” said Sukumar Samanta, General Secretary, Singur Ratanpur Aloo Byabasayi
Samiti. “Chandramukhi” currently accounts for about 10 per cent of the total potato produced in the State, up from 6-7 per cent three years ago. West Bengal produces about 95-100 lakh tonnes of the tuber annually. “There is a rising demand for Chandramukhi due to its superior quality and better taste and this is encouraging farmers to increase production,” said Arup Roy, State Agriculture Marketing Minister. The variety, which was primarily grown in the Hughli district of West Bengal, has now been taken up by farmers in other districts such as West Midnapore, Bankura and Bardhaman, he added. ACREAGE, YIELD “Chandramukhi” accounts for roughly
about one-fifth of the total area under potato production in the State, which stands at about four lakh hectares, said Patit Paban De, Member, West Bengal Cold Storage Association. “Both Jyoti and Chandramukhi offer same yields on a given land. In fact sometimes Chandramukhi turns out better if the weather is cold and favourable,” De said. COST DYNAMICS A farmer incurs 35 per cent more expense in the production of Chandramukhi as compared with Jyoti. However, the higher expense incurred is more than offset by the price it fetches in the market. “To cultivate Jyoti on one bigha (0.33 acre) of land a farmer spends about Rs 11,000-12,000, while the same for Chandramukhi is anywhere close to Rs 15,000-16,000. However, he still stands to gain due to the higher returns offered by the premium variety,” De explained. In the wholesale market, Chandramukhi typically earns a premium of Rs 1-2 on a kg as compared with Jyoti.
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AgriTech India July 2012
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Jain Irrigation to launch a nonbanking finance company
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ain Irrigation Systems Ltd. (JISL) has got regulatory approval from the Reserve Bank of India (RBI) to launch a non-banking finance company (NBFC). The NBFC will focus on the farm sector, and operate in rural and semi-urban areas. According to a company statement, the NBFC, to be named Sustainable Agro-commercial Finance Ltd. (SAFL), will commence operations initially with Jain Irrigation, promoter entities and International Finance Corporation (IFC), a member of the World Bank Group, as equity shareholders. . SAFL will be a non-deposit taking NBFC. SAFL will provide agri-loans and offer a wide range of financing options. The main products will include micro irrigation systems (MIS) financing, agri project financing, contract farming, small business loans, solar pumps and appliances farming. JISL had decided to promote the NBFC “with an overall objective of serving the small farmer and rural constituencies in a more
comprehensive manner,” the statement said. Headquartered in Mumbai, SAFL will start activities in the postmonsoon period. It is in an advanced stage of setting up around 25 offices in Maharashtra by end-August, and plans to open another 15 offices in Maharashtra by December 2012. “Subsequently, in the second phase, offices will also be opened in the states of Karnataka, Andhra Pradesh, Tamil Nadu, Madhya Pradesh and Rajasthan. Phase-3 will cover offices in the remaining states. A pan-India presence through a network of around 150 offices is envisaged in 3-4 years,” the company said. The company has also undertaken activities related to staff recruitment and setting up a customised IT infrastructure. JISL is a leader in drip irrigation, and its products are aimed at the farmer community. The major portion of its business is related to MIS and plastic pipes. It reported revenues of Rs.3,791 crore and a net profit of Rs.269 crore in 2011-12.
Tea growers want Govt to change pre-harvest insurance scheme
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ig tea growers, even as they welcome the Union government’s current initiative to provide insurance coverage to pre-harvest crops, have reservations about the way it is being done. They made their position clear at a meeting of all stakeholders held here recently by the Tea Board. The Union Government, along with Tea Board and public sector Agriculture Insurance Company of India Limited (AICI) is working on a weather-induced insurance scheme to protect small growers particularly from the probable loss they might suffer due to the damage to crops caused either by drought or excessive rainfall. The big growers raised several issues at the meeting. First, they felt that the small growers should not be singled out for extending the benefit of premium subsidy under the proposed insurance scheme when the big growers were being asked to pay hefty premium. But the government’s argument is that the proposed subsidy will be under the Price Stabilisation Fund Trust (PSFT) tailored for smallgrowers only. Besides, unlike small growers, the big growers have the capacity to pay. Under PSFT, the government will provide subsidy on the premium to be paid by a small grower. If the grower is located in the north-east, the central subsidy will be 75 per cent of the premium amount with another 15 per cent coming from the respective State Governments and the grower coughing up a meagre 10 per cent. For SC/ST growers located in regions other than the north-east, the Central subsidy, State subsidy and grower’s contribution will be 60 per cent, 15 per cent and 25 per cent respectively and for the growers (non SC/ST) in other regions, the corresponding figures will be 50 per cent, 25 per cent and 25 per cent.
italy
AICIL has offered four variants of premium schemes depending on whether the crop damage is due to high temperature, or high temperature with high humidity, or high temperature with low humidity or excessive rainfall. However, it was felt that the classification should be narrowed down to two, namely, high temperature and excessive rainfall. Accordingly, a committee comprising representatives of the growers, Tea Research Association and AICIL came out with the recommendation that in tea a producing area less than 3 mm rainfall in a day will be considered a dry day and above 3mm a wet day. Thus, if the total rainfall between February and May covering roughly 120 days generally known as dry period, is less than 360 mm, the period will be considered for insurance claims. Similarly, at least four hours of sunshine is needed every day during the monsoon months, i.e., between July and September. If the sunshine hours are less than that, the period will be treated as excessive rain period eligible for insurance claims. Not everybody present at the meeting was convinced of the rationale of such an argument. This was because in tea growing areas, the variations in weather condition are wide contributing to the production of wide varieties of tea with different flavours, tastes and colours of the tea liquor and there are variations even from one garden to another depending on location and other factors. It would, therefore, be too simplistic to bring all of them under a straight-jacket formula. Finally, there could be crop losses also due to hailstorms, often localised, and attacks by pests or elephants, and these factors too should be considered for insurance coverage. The core committee, therefore, has been asked to fine tune the scheme.
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