The specially convened Conference of State Ministers of Agriculture/Agricultural Marketing has concluded with a resolve to take necessary steps to maximize farm production, reform all agricultural markets address environmental concerns and take fiscal measures to support agriculture.

Minister for Agriculture, Consumer Affairs, Food and Public Distribution, Shri Sharad Pawar summed up the discussions with the following remarks and action points:

‘Although with your cooperation and efforts we have achieved a record foodgrain production during 2007-08, there is no scope of any complacency. I am happy that the State Governments are geared to face the challenges as revealed from the deliberations in this Conference.

‘I am happy that the conference noted the serious challenges that agriculture faces, both in the national and international arena, from factors like climate change, natural calamities and crop failure, diversion of agriculture land for biofuels and increasing prices of foodgrains.

‘The conference also acknowledged the urgency for increasing the productivity of different crops to bridge the yield gaps as per the national priorities.

‘I think there was general consensus on the way forward and thus we may resolve to adopt the following strategy:

• States will take necessary action for preparation of District Level Action Plans for development of the agriculture and allied sector and for enhancing their investment in the sector so that all States will be entitled to access RKVY funding. District and State Agriculture Plans will be prepared with the involvement of PRIs.

• States will make efforts to adopt short duration high yielding hybrids of rice and other crops which are readily available to bridge the yield gaps.

• States would lay special emphasis on enhancing production of oilseeds and pulses through inter-cropping and mixed cropping with other kharif crops.

• States would concentrate on improving water use efficiency and encourage a watershed development approach.

• Production of breeder, foundation and certified seeds will be increased through joint efforts by the Central and State seed producing organizations such as NSC, SFCI, and State Seeds Corporations.

• Availability of fertilizers will be attended to on priority, both at the Central and State levels. In view of steep increase in prices of fertilizers, States would take appropriate action to bring down the requirement of DAP as assessed by States by at least about 10% without affecting production.

• The extension machinery will be strengthened utilizing recent initiatives like Agriculture and Farmer Development Workshop Cum Exhibition, Krushak Mahotsav or any other initiatives undertaken by the State Governments, to effectively disseminate available technologies.

• States like Punjab, Haryana and Western Uttar Pradesh, from where substantial portion of foodgrain procurement takes place, will focus on ecological and sustainability concerns.

• Substantial scope exists for increasing production of rice in eastern States. Concerted efforts would be made by these States to tap this potential.

• States would endeavour to improve the agricultural market infrastructure and implement agriculture market reforms to improve efficiency, attract private sector investment and ensure better price realization for farmers. All States may complete the process of amendments in APMC Acts and notification of Rules thereunder in a time-bound manner.

• State Governments would look into various taxes /cess/charges imposed by them on the sale of agricultural produce by the farmers including VAT and such taxation may be brought down to a minimum level. VAT may be made zero to facilitate increase in value realization by the farmers and providing food items at reasonable prices to the consumers.

• In order to safeguard the interest of farmers, contract farming would be regulated as suggested by Ministry of Agriculture in the model APMC Act and Rules, so that it can be promoted to ensure higher value addition and remunerative prices to farmers.

• Several States, which have initiated the process of selection of Private Enterprise for setting up Modern Terminal Market Complexes (Expression of Interests invited for 20 locations) in PPP mode under NHM, will expedite implementation of these Terminal Market Projects.

• Ministry of Agriculture may constitute an Empowered Committee of State Ministers of Agriculture Marketing to guide the implementation of agriculture market reforms initiatives.

• States would support the Weather Based Crop Insurance Scheme, as it is a more farmer friendly insurance scheme, and would take action to increase coverage of farmers.

• States would come forward and avail of assistance under the National Project on Management of Soil Health and Fertility, which envisages setting up of 500 static and 250 mobile testing laboratories, and is proposed to be implemented during the 11th Plan with an outlay of Rs. 480 crore’.

Arcadia Biosciences, Inc., an agricultural technology company focused on developing technologies and products that benefit the environment and human health, and Maharashtra Hybrid Seed Company Ltd. (MAHYCO), one of the largest seed companies in India, today announced that they have concluded a multi-crop, multi-technology research and commercial license agreement focused on India and other South Asian countries. Under the agreement, MAHYCO will have access to Arcadia’s Nitrogen Use Efficiency (NUE) and Salt Tolerance technologies in several key crops in the region.

The comprehensive agreement between Arcadia and MAHYCO involves bringing Arcadia’s advanced agricultural technologies to a region that is experiencing rapid population growth and is challenged by difficult agricultural and environmental conditions. With more than 1.1 billion people, India represents about 17 percent of the world’s population, although it occupies just over 2 percent of the world’s land mass. Based on the current growth rate, India is expected to overtake China in 2030 as the world’s most populated country. Concurrent with this rapid population growth, the United Nations Food and Agriculture Organization (FAO) estimates that 221 million people in India, or about one-fifth of the population, are undernourished. As such, there is significant pressure on Indian farmers to increase agricultural productivity.

Agriculture is also the second-leading source of global greenhouse gas, and nitrogen fertilizer represents a significant cause of these emissions. Using only existing technologies, Indian farmers will need to claim more land to grow crops, which uses more nitrogen fertilizer and scarce water resources to achieve much-needed higher yields. Arcadia’s NUE technology can significantly reduce nitrogen fertilizer requirements, and Salt-Tolerance technology can reduce the need for fresh water resources for irrigation. The expected result is high-yielding crops with a lower impact on the environment.

“Globally, there are significant challenges associated with providing an adequate amount of food in ways that minimize negative impacts on the environment. India is one of the places where these challenges are evident and require serious action,” said Eric Rey, president and CEO of Arcadia. “MAHYCO’s expertise in developing crop varieties for the region and marketing new seed technologies to both large and small South Asian farmers can play a central role in the region’s ability to feed its growing population. The need for South Asian farmers to produce more food to keep pace with population growth will continue to put pressure on local fresh water resources to irrigate crops and increase the need for nitrogen fertilizer, a major global contributor to greenhouse gas emissions. Arcadia’s technologies enable the development of crops that either reduce agriculture’s contribution to climate change or adapt to the stresses that climate change places on agriculture.”

"Nitrogen use efficiency will bring great benefits to Indian farmers by providing better yield under existing conditions or leading to lowering of nitrogen fertilizer applications in some areas and still maintaining yields. More and more Indian soils are affected by various abiotic stresses and this technology holds promise to allow cultivation even in these adverse conditions. MAHYCO is looking forward to bringing these technologies for the benefit of the Indian farmer," said Usha Zehr for MAHYCO.

India’s multinational seed company, Advanta India through its subsidiaries has acquired 100% stake in Garrison & Townsend, for USD 10.5 million.

US-based, Garrison is a hybrid grain and forage sorghum research, production, conditioning marketing and selling company. Its products are marketed throughout the US and also in Italy, Israel, Pakistan, Mexico, Central America, South America and Japan. In fiscal year 2007, the company achieved sales of USD 11 million.

Market analysts expect that this acquisition will boost Advanta’s presence in the US and will strengthen its presence world wide.

Earlier this year, Advanta India acquired Unicorn Seeds by acquiring 100% shares in the company for a consideration that includes deferred payment based on achievement of performance related milestones.

The General Budget 2008-09 has proposed to add the business of production of seeds and manufacture of agricultural implements to the list of exempt category on in-house scientific research. They will be allowed a weighted deduction of 150 per cent on any expenditure on in-house research as available hitherto to companies engaged in certain businesses.

In order to promote outsourcing of research, a weighted deduction of 125 % has been allowed on any payment made to companies engaged in R & D.

Income rising from saplings or seedlings grown in a nursery has been exempted from tax on the lines of agricultural income.

The National Conference on Agriculture for Kharif Campaign 2007-08 concluded on February 27^th. The deliberations among Central government departments, State governments and scientists resulted in a number of crop-specific and issue-specific recommendations for the coming kharif season.

States have been advised to submit their Action Plans for kharif in the first week of March. They must take all necessary steps in time for maximising kharif production including ensuring input supply, energising the extension network and promoting best agronomic practices.

Earlier, presentations were made by division heads on WTO issues, national policy for farmers, RKVY and NFSM, plant protection and extension system and discussed with the states. In their presentations, individual states presented the position relating to rabi assessment and kharif prospects, initiatives taken for implementing NFSM and RKVY, steps taken to encourage private investment and market reforms, and status relating to availability of quality seed and fertilizers.

The recommendations of the Conference are given below in detail.

Rice

        1.      Promotion of System of Rice Intensification Technology in identified districts under upland conditions with assured irrigation facilities.

        2.      Promotion of early maturing rice varieties in rainfed uplands and midland situations in North Eastern and Eastern States to facilitate early harvesting of crop and enabling sowing of winter season short duration oilseeds and pulses. 

Coarse Cereals-Millets

1.                   Encouraging the use of hybrids and high yielding cultivars particularly in respect of Jowar and Bajra.

2.                   Promotion of ridge planting for better moisture conservation and efficient utilization of rain water, especially in rainfed areas and also to minimize water logging.

3.                   Promotion of soil and water conservation measures and harvesting of rain water in dug out farm ponds for life saving irrigation in the event of rain failures.  

Cotton

1.       Increasing the availability of treated quality seeds with emphasis on delinted seeds.

2.       Increasing irrigated area and efficient use of irrigation water through drip and sprinkler.

3.       More focus for transfer of technology to farmers through Front Line Demonstration & upgradation of technical skills amongst farmers and extension workers through Farmers Field School and trainings at State & National level.

Jute     

1.        Distribution of certified seeds / minikit of jute, mesta & sunhemp and distribution of ramie rhizome. Seeds of new varieties need to be made available.

2.        Development of Post-Harvest Technology like retting facility, distribution of culture for jute/mesta, decorticator and degumming unit for ramie.

3.        Establishment of Model Ramie Farm, support to adaptive research, publicity and need based interventions etc. 

Sugarcane 

  1.             Encourage Sugarcane area through diversification to some other less water demanding crops wherever shortage of irrigation water is anticipated;

  2.             Encourage cultivation of proper inter crops to increase returns to the farmers;

  3.             Adopt efficient irrigation techniques to achieve higher water use efficiency;

  4.             Efforts to increase area under early maturing, high yielding, high sugar recovery varieties and having good ratoonability. 

1.        States to submit the Action Plans for 2008-2009 Kharif season by the first week of March as per the physical targets. The targets should be based on the area to be covered under different interventions for achieving envisaged production targets.

2.        The baseline survey should be started as early as possible and the District wise survey report needs to be submitted by the end of March 2008 in the prescribed format.

3.        Additional area to be brought through the utilization of rice fallows and intercropping of pulses with other crops should be clearly defined in the identified districts under NFSM-Pulses

Rashtriya Krishi Vikas Yojana (RKVY)

1.       Rashtriya Krishi Vikas Yojana has been successfully launched receiving overwhelming response from the States. Long felt needed interventions have been taken up by the States with the focus on a ‘farmer centric’ approach. For the first time, convergence is being achieved through preparation of District Agriculture Plans ensuring a ‘bottoms-up’ approach in agriculture planning and programme implementation.  

National Policy for Farmers, 2007

1.       As most of the policy provisions require the action of the State Governments at district/taluk/panchayat levels, the State Governments may work out State level strategy /plan of action for implementation of the National Policy for Farmers 2007 keeping in view the grass-root level requirements. Existing ongoing schemes like RKVY and NFSM may be utilized for effective implementation of the Policy. 

Extension

1.       There is a need to demonstrate latest technologies through agencies like ATMA/KVKs/other agencies in the districts. Such fairs/demonstrations should be organized on a crash basis before the Kharif season say, during March/April. Three to five districts may be covered intensively. The activities may include display of improved technology, implements and practices; workshop and training. The workshop may include farmers, academics and industry.

2.       Electronic Monitoring System was launched about a year ago. However, same has not been fully operationalized so far. States are requested to make this system fully operational at the earliest for online tracking of physical and financial progress and outcome indication.

3.       Keeping in view the importance of SAMETIs, full time minimum qualified and dedicated experts may be posted there. Faculty of SAMETIs could be deputed to MANAGE for their training.

4.       Farm Schools operationalized by outstanding farmers and others at Panchayat / Gram Panchayat level to be promoted for providing extension support to leaders of farmers’ groups and other farmers. 

Seeds  

1.       Efficient multiplication of breeder and foundation into certified seed by the seed producing agencies and it should be closely monitored every crop season and remedial measures should be taken then and there.

2.       States should take advance action to ensure the availability of certified/quality seed. Place advance indents directly with State Seed Corporations, NSC, SFCI, KRIBHCO, IFFCO, NAFED, NHRDF. Private Sector to be involved in seed production.

3.       State should closely implement the seed component provided in the various scheme like Macro Management of State Work plans NFSM, ISOPOM, Technology Mission on Cotton, Jute & Mesta and Seed Village Programme, Seed Infrastructure etc and it should be monitored every month.

4.       State should implement the Seed Law Enforcement including timely dissemination of test results and certification of seed for making the seed available at Distribution/Sale point by the Seed Producers/Marketers.

5.       State should target to implement Seed Village Programme at least 10% of the Villages and it should be evenly distributed in all areas and in all crops i.e. Cereal, Pulses, and Oilseeds. 

Agricultural Marketing 

5.       Remaining States to amend APMC Acts to facilitate setting up of private/cooperative markets, direct marketing, contract farming, e-trading etc.

6.       States to notify modified Rules based on amended APMC Acts.

7.       States should complete the process of selecting Private Enterprise for setting up of Modern Terminal Markets in identified locations.

8.       States should take steps to modernize existing regulated market yards and provide value addition facilities in them in PPP mode.

9.       States to improve rural primary markets and promote setting up of farmers’ markets.

10.   States should ensure regular reporting of market data on AGMARKNET from all networked markets.

11.   SAMETIs and ATMAs should mainstream marketing extension in their training/awareness activities.    

National Horticulture Mission 

1.        SHM need to expedite the project based activities particularly for developing infrastructure for post harvest management and marketing.

2.        Proposal for setting up of Terminal Markets needs to be pursued in accordance with the guidelines.

3.        SHM should involve the Growers Associations in the implementation of some of the component of NHM, especially rejuvenation of old and senile orchards and training of farmers and awareness programme. 

Technology Mission for Integrated Development on Horticulture in North Eastern states Sikkim, J&K, Himachal Pradesh and Uttarakhand.  

1.       There is increased demand for organically grown horticultural products, particularly in international markets. In the North Eastern Region, where the use of chemical fertilizers is minimum, promoting organic farming in the region could be an advantage. Simultaneously, efforts should be made to create local markets also.

2.       The State Governments need to initiate steps for promoting contract farming in Horticulture.

Micro Irrigation 

1. States like Bihar, Jharkhand, West-Bengal, Delhi ,Goa and Kerala need to pay more attention to promotion and demonstration of drip & sprinkler technology. ICAR may take appropriate action through KVK’s of those concerned States for which fund is available with the District Implementing Agencies. Scientific information on Water, its quality and optimum requirement through drip/sprinkler irrigation for each crop (commercial) is not known to farmers and may be provided by ICAR for each State.

Integrated Nutrient Management

1.        Wide publicity may be given for model bankable projects for setting up of fruit/vegetable waste compost production units, bio-fertilizer production units and vermi-culture hatcheries.

2.        Quality of Bio-fertilizer may be ensured, namely; Rhizobium, Azotobactor, Azospirillum & Phosphate Solubilising Bacteria (PSB) and Organic Fertilizers, namely; City Compost, Vermi-compost and press mud. Incidentally, the quality parameters in respect of Press Mud organic fertilizer are under re-examination of the Ministry. The State Governments have been advised for the time being, till the revised notification is issued, not to enforce the penal action regarding quality parameters.

3.        The Ministry has introduced a new concept of Site, Soil & Crops specific Fertilizer under Clause 20B of FCO Customized fertilizer, these will be communicated to the states and industries shortly. 

Plant Protection

1.       States must set definite targets in terms of definite volume of seed to be treated, on the basis of achievement during Kharif 2007. The targets must cover, the seed distributed by institutional channels both Private and Public and the self sown seed by the farmers.

2.       The Chemicals/agents used for treating the seed by the Public and Private Organized Institutions must be ensured to be of standard quality, prescribed type and quantity.

3.       Promote bio-agents (recommended) on the crops which are proved to be effective. Plan in advance for supplying adequate quantity of bio-agents.

4.       All the States/UTs are advised to use full capacity of their State Pesticide Testing Laboratories(SPTL).

5.       The SPTLs should be NABL accredited.

6.       Special campaign for Quality Control should be launched during peak cropping season.

7.       Priority for pest surveillance and management based on the requirement is needed. In particular the North-Eastern States, during impending bamboo flowering, must take up surveillance on priority.

8.       States and UTs may be requested to nominate more and more officers for various training programmes.

To continue the buoyancy in tax revenues, the Finance Minister, Shri P Chidambaram has announced reduction in excise duty on agriculture related items while presenting the Union Budget 2008-09 in the Lok Sabha today.

In order to reduce the cost of manufacture of cattle and poultry feeds, duty on vitamin premixes and mineral mixtures has been reduced from 30% to 20%. Duty on Phosphoric acid has been reduced from 7.5 to 5 percent. The duty on bactofuges is reduced from 7.5percent to Nil. This will increase the shelf life of milk and benefit the dairy industry.

In order to support domestic fertilizer production, the minister reduced the customs duty on crude and unrefined sulphur from 5% to 2%.

In 2007, biotech crop area grew 12 percent or 12.3 million hectares to reach 114.3 million hectares, the second highest area increase in the past five years. Two million more farmers planted biotech crops which now total 12 million farmers globally benefiting from the technology. Nine out of ten, or 11 million of them were resource-poor farmers, exceeding the 10-million milestone for the first time. These were highlights of a report presented by Dr. Clive James, chair and founder of the International Service for the Acquisition of Agri-biotech Applications (ISAAA). Other highlights of the report include:

• India experienced the highest proportional increase in 2007, with a 63 percent gain to total 6.2 million hectares of biotech cotton grown by 3.8 million resource-poor farmers.
• China, increased Bt cotton production by 0.3 million hectares to total 3.8 million hectares, 69 percent biotech cotton area. A total of 7.1 million farmers planted the biotech crop. In addition to biotech cotton, Chinese farmers also grew biotech papayas and biotech poplar tree. 
• Brazil experienced the greatest absolute growth, at 3.5 million hectares to total 15 million hectares of herbicide-tolerant soybeans and Bt cotton. 
• South Africa, the only African country planting biotech crops, increased plantings by 30 percent to total 1.8 million hectares. 
• Europe surpassed 100,000 hectares of biotech crops for the first time in 2007 with 77 percent growth. In EU, 8 of the 27 countries planted biotech crops in 2007. 
• Poland and Chile planted biotech crops for the first time in 2007, bringing the total  countries planting biotech crops to 23

The Union Minister of Agriculture, Consumer Affairs, Food and Public Distribution Shri Sharad Pawar has said that the Central Government has taken a number of measures to assist the sugar industry and help sugarcane farmers. He said that almost all the financial assistance to sugar industry is meant for payment of cane dues and therefore, the industry must ensure that farmers are paid their dues without any delay.

He stated this while inaugurating the 73rd Annual General Meeting of Indian Sugar Mills Association here today.

Enumerating the steps to help the sugar industry, Shri Pawar said that buffer stock of 50 lac tons has been created for a period of one year, for which the Government would pay buffer subsidy of almost Rs. 880 crore from Sugar Development Fund. Besides, he said, the Banks would provide additional credit of about Rs. 970 crore and this amount has already been made available to sugar factories following instructions of RBI and NABARD. He however, reminded the sugar industry that as per the Sugar Development Fund Rules, the buffer subsidy and additional credit are to be used for payment of cane price to sugarcane farmers as the first priority. Thus, he said, about Rs. 1850 crore would be available with the sugar factories to make cane price payment including arrears.

He said that another assistance of 300 crore would be available from the Sugar Development Fund on account of defraying of internal transport, handling and marketing charges and ocean freight on sugar exports made on or after 19th April 2007. This assistance is also to be used for payment of cane price including cane price arrears to sugarcane farmers as the first priority, he added.

Amongst other measures, Shri Pawar mentioned the NABARD package for restructuring of loans to cooperative sugar mills across the country under which the moratorium on outstanding term loans has been extended from two years to upto five years. He said a special scheme for extending financial assistance to sugar factories has been notified under which scheduled and cooperative banks would give loans to all sugar factories equivalent to the notional central excise duty payable on total production sugar during 2006-07 season and on the estimated production during 2007-08. Though the scheme provides full interest subvention, it would be limited to 12% per annum which would be fully borne by the Central Government, he said and added that this would improve the liquidity position of sugar mills by about Rs. 3800 crore. This amount is also to be used for payment of cane price arrears of 2006-07 and 2007-08, he said.

Shri Pawar said that sugar factories would be allowed to convert sugarcane juice or B-Heavy molasses directly into ethanol and a Notification in this regard is likely within a month. He mentioned about the mandatory blending of 5% ethanol with petrol with immediate effect and 10% blending from October 2008 (except in J&K, NE States and Island Territories) which would give an assured market for 600 million litres and 1200 million litres of ethanol respectively.

The Minister hoped that the timely action by the Centre would not only help in clearing cane price arrears of the last sugar season, but would also prevent accumulation of cane price arrears in the current sugar season. He announced that his Ministry has set up computerized systems to settle claims for buffer subsidy and export assistance to speed up the process of settlement and also to make the working more transparent.

Shri Pawar assured the sugar industry representatives that the Centre is trying to find a workable solution with the States with regard to state duties and restrictions on movement of ethanol and hoped that its production, movement, blending and sale would be smooth and convenient.

Regarding laying down the BIS specifications for 10% ethanol blended petrol; the Minister informed that the Department of Consumer Affairs is already working on it and hoped that the standards would be finalized by March 2008.

Shri Pawar also told the participants that the Centre would make efforts to persuade the key sugar producing States from announcing irrationally high State Advised Prices for sugarcane. He disclosed that detailed discussions on this issue were held with these States and response was positive.

On the sugar industry’s demand of increasing the minimum distance from 15 kms to 25 kms for setting up a new sugar factory, the Minister pointed out that the sugarcane farmers are generally not in favour of keeping this minimum distance and they want more sugar factories in the given area so that they get better prices for their produce due to competition among sugar factories. Shri Pawar suggested that the cane requirement for higher crushing should be met by sugar industry by increasing the productivity of sugarcane in their respective areas.

Earlier in his Presidential address, Shri P. Rama Babu appreciated Government’s decision to create a buffer stock of five million tones for a period of one year with interest and warehousing cost subvention, from the Sugarcane Development Fund. He also welcomed the Government’s decision to mandate doping of 5% ethanol from October 2007 and to increase the level to 10% from October 2008.

DuPont’s first research & development centre in India, which is due to open in Hyderabad early next year, will for the first time see basic research in areas like crop genetics head to an offshore centre.

While critical research, so far, is concentrated in DuPont’s R&D labs in the US, the Indian centre, which has some 300 scientists, will deal in developing biotech traits and technologies that will be incorporated into multiple crops for the global market. In addition, it will focus on renewable energy, which includes bio-fuel and solar cells with photo-voltaic technology.

Addressing the media at the 150-acre experimental station in Wilmington, Delaware, the company’s chief science and technology officer and senior V-P Uma Chowdhury said, the new centre was part of the $1.4 billion annual investment in R&D in a diverse range of technologies, from agriculture to electronics.

"India can’t be just a revenue base," said Balvinder S Kalsi, president and CEO, DuPont India. "It will allow us access to local talent and reinforce the importance of India as a global centre of scientific excellence."

Given the somewhat bumpy progress of BT in Indian agriculture, group V-P, agriculture and nutrition, J Erik Frywald, said they were giving it a three-to-four-year timeline for making inroads in the country. "We are trying to convince the government of BT traits in hybrid rice," he said, adding that the company was in favour of regulations. As of now, its subsidiary, Pioneer Hi-Bred International Inc, is focusing on rice and corn.

The global media presence was also the occasion for the company to unveil at Des Moines, Iowa, a new accelerated yield technology (AYT) that increases soyabean yields up to 12%. New varieties will be introduced in 2008.

In fact, speaking on the company’s strategy, chairman and CEO Chad Holliday explained how the company has integrated three fundamental philosophies —putting science to work, going where growth is and power of one DuPont — to make a shift from textiles and home furnishings to agriculture, nutrition and automobiles.

Soyabean production may touch 94.73 lakh tonne in Kharif 2007 in comparison to 71.49 lakh tonne in the last season as its yield and acreage rise by around 15 per cent each, an industry body said.

Yield of the crop is expected to grow by 15.42 per cent to 1.07 tonne per hectare as compared to 0.92 tonne last year, while area under its production has gone up by 14.68 per cent to 88.49-lakh hectare from 77.16 lakh hectare.

"The yield in the current Kharif season is expected to go up mainly because of timely and well-spread rainfall," Mr D R Kalra, Executive Director of the Soyabean Processors Association (SOPA) said.

Besides, he said, better agricultural practices such as good quality of seeds and use of insecticides and pesticides adopted by the farmers would also lead to better yield.

Mr Kalra said SOPA would soon release the final estimate of soyabean produced in Kharif 2006, which is likely to move up in the range of 78-79 lakh tonne.

However, the production estimate of SOPA for Kharif 2007 is in variance with the government projection regarding the crop production.

The agriculture ministry recently revised soyabean production estimate marginally down to 89.83 lakh tonne from the first advance estimate that put the output at 90.4 lakh tonne.

Meanwhile, the Central Organisation for Oil Industry and Trade (COOIT) has pegged the soyabean output at 94.6 lakh tonne.

According to SOPA, Madhya Pradesh is likely to produce the largest quantity of soyabean at 49.8 lakh tonne, against the 39.42 lakh tonne last year.

The production in Maharashtra is estimated at 32.37 lakh tonne while in Rajasthan it would be around 7 lakh tonne.

Export of oilmeals, which has witnessed a 12 per cent decline in the first half of the current fiscal, could rebound in third quarter in the face of higher oilseeds production and lower crop in the US and China.

“Prospects for oilmeals export, especially soyameal, are bright during October-December. Worldwide there is a shortage of oilmeal since crop in the US and China is estimated to be 20 per cent lower,” said Mr Davish Jain, Chairman of the Central Organisation of Oil Industry and Trade (COOIT).

“In view of a higher oilseeds production, especially soyabean, we enjoy an advantage. Particularly, there is good demand from East Asia and we will be able to meet it,” he said.

According to the Solvent Extractors Association (SEA), oilmeals export slid to 14.32 lakh tonnes (lt) during the first half against 16.33 lt a year ago. Soyameal shipments were down to 7.75 lt (9.75 lt), rapemeal to 3.90 (4.51), groundnutmeal to 12,275 tonnes (48,100 tonnes) and ricebran extraction to 91,475 tonnes (94,750 tonnes). Exports of castorseed extraction, however, increased to 1.63 lt from 63,575 tonnes.

“We cannot compare the current fiscal’s figures with that of the last one. This year, we have had a lower oilseeds crop,” said Mr B.V. Mehta, Executive Director of SEA. “But exports will improve in the coming months as we are expecting a higher crop in oil year.”

During the current oil year (November 2006-October 2007), oilseeds production is estimated to have declined to 226.7 lt from 239.7 lt last year. In the oncoming year, production could top 250 lakh tonnes, according to the industry.

Kharif oilseeds output

According to COOIT, kharif oilseeds production is estimated to be 151 lt against 131.5 lt last year. “For soyameal, we have at least 10 lakh tonnes of export orders contracted for the new crop,” said Mr Jain.

To a question on 68 per cent drop in oilmeal exports to China during the first half, he said China would continue to buy, especially in view of a lower crop there. “The crop in China is lower. It will have to either import soyabean or meal. High freight charges will force it to buy soyameal from India,” Mr Jain said.

Freight charges for soyabean and meal from the US to China is over $100 a tonne, while from India the charges for shipping soyameal is $40-45. “India will definitely be preferred,” he said.

Mr Rajesh Agrawal, spokesman of Soyabean Processors Association of India, said China had contracted around 1.5 lt of soyameal and it was buying it in small containers.

Beside China, other countries which have contracted Indian soyameal are Japan, South Korea, Vietnam, Indonesia, the Philippines and Thailand, according to Mr Jain. “These destinations account for 7-8 lt of the contracted volume,” he said.

While oilmeal exports are set to gather pace, the unit value realisation is also higher compared to last year.

“New contracts have been struck around $300 a tonne free alongside ship against $220 last year,” said Mr Agrawal.

“Oilmeal exports realisation will be higher. Rapemeal is ruling at $162 against $107 last year, groundnut meal at $255 against $156 and castormeal at $100 against $50,” said Mr Mehta.

Mr Agrawal said while there was every possibility of soyabean production topping 90 lakh tonnes, farmers too were getting good prices. “Currently, bean prices are around Rs 15,500 a tonne against Rs 12,250 last year,” he said.

Rice exporters fear that the government’s decision to ban exports of non-basmati rice, announced on Tuesday, may impact domestic farmers adversely. This is because the rice varieties, that earlier fetched a premium in the international markets will now have to be sold in the local markets at low rates.

The varieties include pusa 1121 and sharbati from North India, narvare and punni rice from South India and sona masauri. The prices in the local markets have already come down on Wednesday and in Amritsar the price of sharbati was down by Rs 100-200 per quintal at Rs 1,151-Rs 1,261, price of Pusa was down by Rs 100 to Rs 1,811-Rs 1,821. Prices were down even in Karnal mandi in Haryana where Pusa 1121 was down by Rs 200 at Rs 1,800 while sharbati was down by Rs 100 to Rs 1,300-Rs 1,350 per quintal.

All India Rice Exporters Association president Vijay Sethia said that the group has put forth its suggestion before APEDA, to permit export of rice varieties that are sold above $650 per tonne fob. This will ensure there is enough rice to meet the public distribution system demand. “Government will lose foreign exchange that can be utilised to purchase other grains like wheat,” Mr Sethia said.

Anil Mittal, managing director of the Delhi-based rice producer KRBL, that produces India Gate brand of rice said that government should have capped the minimum export price at $550 per tonne. “75% exports of Basmati are of Pusa 1121 and CSR 30 variety, which are yet not notified as basmati rice and are sold at between $1,100-$1,200 per tonne. What will happen to these?” he asks.

India exports about 3 to 4 million tonnes (mt) of rice every year, of which non basmati rice forms a major chunk. The share of exports is around 4% of total country’s production of over 90 million tonnes, say exporters.

Prem Garg who is the managing director of Delhi based Shivnath Rai Harnarain, one of the largest exporters of non basmati rice said, "Indian industry will suffer as more than 3 lakh tonnes of cargo is lying at Kakinada port and around 40,000 tonnes at Kandla and all of this has been committed for exports. Another contracts of one million tonnes are pending to be executed by January 2008," he said.

Mr Garg said that Pakistan will stand to gain from exports to the markets which have been created by Indian exporters. According to Punjab rice miller’s and exporters association executive director Ashok Sethi, the government should protect the interest of farmer who was riding high on the soaring price. “The government should classify the varieties of basmati, which cannot be exported," he said.
 
 

The GEAC did not give permission to conduct Large Scale trials on Bt Brinjal hybrids SBJ 1 Bt, SBJ 2 Bt SBJ 4 Bt, SBJ 6 Bt, SBJ 7 Bt and SBJ 8 Bt expressing cry 1Ac gene. The Committee expressed the view the Bt brinjgal hybrids developed by M/s. Mahyco is still under review and therefore the present request can not be considered at this stage.

Permission to conduct confined Multi Location Research Trial (MLRT) on 2 Bt cabbage hybrids namely SCB-3 Bt and SCB-7 Bt expressing cry1Ac gene by conducting Multi Location Research Trial (MLRT) during Rabi 2007 was taken up for discussion. As the Bt cabbage has no place in the 24 items approved by the GEAC during 1.5.2006 to 22.9.2006, this approval will be subject to the outcome of the Hon’ble Supreme Court’s decision. This will depend on submitting the name of the Lead Scientists responsible for the trails before undertaking the trials, submission of an event specific test protocol duly validated/verified by ICGEB,New Delhi, maintanence of an isolation distance of minimum 200 m and and MLRT shall not be conducted in farmer’s field.

For strip trial with transgenic tomato( cv. Pusa.Ruby)has been considered with certain conditions.They include strip trials for new events should be undertaken by the companies/institutions in their own premises/research farms and a distance of 200 m should be maintained.The applicant also should submit a validated event specific test protocol before undertaking the trial.

The Committee considered permission to commercial release/strip trials of Bt cotton hybrids with approve gene events. Says no to large scale trials on bTsThe Committee noted that the proposals for commercial release and strip trials have completed the requisite regulatory testing and evaluation process. The GEAC therefore approved this proposal. It was decided that this approval would be valid for Kharif 2008 only.

The GEAC also gave permission for Bt rice and RB-transgenic potato lines. Permission has been given for extension of the period for conducting replicated confined Multi-Location Research Trial (MLRT) on Bt rice hybrid containing cry1Ac gene from Kharif 2007 to Rabi 2007 and to generate the biosafety data. Regarding RB-transgenic potato lines (SP-951) permission to extension of the period for conducting contained limited field research trial (strip trial) from kharif-2007 to Rabi-2007 by Central Potato Research Institute, Shimla has been granted.

The trials of these items could not take place during Kharif 2007, the GEAC approved to conduct the same during Rabi 2007.The applicant also should submit a validated event specific test protocol before undertaking the trials.

After detailed deliberations the GEAC approved the request for strip trials subject to the following conditions:

The applicant should submit to the RCGM/GEAC the name of the Lead Scientist responsible for the trials before undertaking the trials.

The applicant should submit to the RCGM/GEAC an event specific test protocol duly validated/ verified by ICGEB, New Delhi / NBRI, Lucknow or any other accredited laboratory before undertaking the trials.

An isolation distance of minimum 200 m shall be maintained. In cases where the Seed Standards Certification mandates a larger isolation distance, the same shall be maintained.

The Strip trials shall not be conducted in farmers’ field. Strip trials should be undertaken by the Companies/Institutions in their own premises or research farms.

Concerned about growing procurement requirements of rice to be distributed by the Public Distribution System and for other welfare schemes, the Cabinet Committee on Economic Affairs (CCEA) on Tuesday decided to ban export of “non-basmati” rice with immediate effect.

However, the concern is not inflationary, Union Finance Minister P Chidambaram said. “There is a much higher procurement requirement as offtake of rice has gone up sharply. The offtake in 2002-03 was 105 lakh tonnes. In 2006-07, it has more than doubled to 212 lakh tonnes,” he pointed out, adding that the ban would be “reviewed later”.

At the same time, the CCEA announced an incentive bonus of Rs 50 per quintal of paddy/rice to enhance procurement during the Kharif marketing season. The Minimum Support Price (MSP) for Grade ‘A’ varieties of rice has been set at Rs 675 per quintal and for common grade at Rs 645 per quintal.

As reported by The Indian Express earlier, the CCEA also cleared the MSP recommendations made by the Commission of Agricultural Costs and Prices for various Rabi crops. The MSP for wheat saw the steepest hike from Rs 850 last year to Rs 1,000 per quintal. The MSP for both gram and masur has been raised by Rs 155 from last year, taking it to Rs 1,600 and Rs 1,700 per quintal, respectively.

With the possibility of mid-term elections looming large, the Centre on Tuesday announced the highest-ever hike in the minimum support price of wheat for the coming rabi season, gave an incentive bonus on the support price for kharif rice and banned the export of non-basmati rice. Substantial hike in the support price of barley, gram masur, rapeseed/mustard and safflower were also declared.

The government also announced a relief package for the sugar industry, particularly to benefit the farmers. The package includes extending moratorium from two to five years on outstanding term loans.

The Cabinet Committee on Economic Affairs chaired by Prime Minister Manmohan Singh approved a Food Ministry proposal for setting the minimum support price of wheat at Rs. 1,000 per quintal against Rs. 850 per quintal (including a bonus of Rs. 100 per quintal) last year, in the face of criticism for importing wheat at Rs. 1,600 per quintal.

The CCEA also took the decision to give an “incentive bonus” of Rs. 50 per quintal during the kharif marketing season, 2007-08. The bonus would be given with retrospective effect for the entire procurement period. The support price for common variety of rice would thus be Rs. 695 per quintal and for Grade ‘A’ rice it would be Rs. 725 per quintal including the Rs. 50 incentive bonus. This will encourage farmers to grow more paddy and also contribute more to the central pool since there is a shortfall in procurement of wheat for the last two years.

Announcing the decisions, Union Finance Minister P. Chidambaram told journalists that the ban on export of non-basmati rice was imposed in view of the increasing domestic requirement. The off take of rice in the Public Distribution System had increased from 105 lakh tonnes in 2002-03 to 212 lakh tonnes in 2006-07.

The CCEA also gave its nod for enhancing the minimum support price of barley to Rs. 650 per quintal from Rs. 565 per quintal last year. The support price for gram has been raised to Rs. 1,600 per quintal against Rs. 1,445 last year. The price for masur (lentil) has been hiked to Rs. 1,700 per quintal from Rs. 1,545 last year. The minimum support price for rapeseed/mustard oilseed has been hiked to Rs. 1,800 per quintal from Rs. 1,715 per quintal last year. The support price for safflower has been set at Rs. 1,650 per quintal as against Rs. 1,565 per quintal.

The government said that the prices of other oilseeds belonging to the rapeseed/mustard group would be fixed on the basis of their normal market price differentials with rapeseed/mustard.

The delay in announcement of a bonus for paddy, over and above the minimum support price (MSP), is impacting procurement for the Central pool in the just-commenced 2007-08 kharif marketing season (October-September).

Cumulative buy

The Food Corporation of India (FCI) and State agencies have, as on Monday, managed to cumulatively buy only 17.50 lakh tonnes (lt) of rice, against 22.79 lt procured during the corresponding period of the 2006-07 season. Procurement is lagging behind both in Punjab (14.13 lt versus 18.38 lt) as well as Haryana (3.33 lt versus 4.39 lt).

Market arrivals, too, have been lower so far, with mandis in Punjab receiving only 29.72 lt of paddy, compared with last year’s cumulative quantity of 34.15 lt. The corresponding paddy arrivals in Haryana mandis stood at 7.52 lt and 8.49 lt, respectively (paddy contains roughly 67 per cent rice). Significantly, out of the total paddy arrivals till now, private traders and millers have bought 29.03 per cent in Punjab and 34.18 per cent in Haryana, as against their corresponding last season shares of 19.65 per cent and 22.83 per cent, respectively.

Farmers are apparently delaying bringing their crop into the market because they are awaiting the announcement of the bonus by the Centre. Those who cannot hold on are preferring to sell to private millers and dealers, as they are offering marginally more than the MSP (fixed at Rs 675 a quintal for Grade ‘A’ paddy and Rs 645 a quintal for common varieties).

The Centre is expected to declare a bonus of Rs 40 a quintal, with the decision slated at the next meeting of the Union Cabinet on Thursday. The drop in mandi arrivals is also being attributed to late transplanting this time.

Late transplantation

“Normally, in Punjab transplanting starts towards mid-May, whereas this year it took off only from early June. The main reason for this was the State Government not making available electricity for agricultural operations before June 10,” said Mr Raj Sood, a leading commission agent from Punjab’s Khanna mandi. The Government has been keen to discourage peak-summer plantings in view of it aggravating the already grave water-table situation in the State.

There has also been a decline in paddy acreage in Punjab, from 26.21 lakh hectares (lh) to 25.75 lh, and in Haryana, from 10.41 lh to 10.20 lh.

Shift in area

“Some area has shifted to maize and cotton. But I believe this will be offset by yields averaging 28-29 quintals an acre, against last year’s 26-27 quintals. So, on the whole, production will remain more or less the same”, said Mr Anil Mittal, CMD of the Delhi-based KRBL Ltd.

Total rice procurement for the entire 2006-07 season amounted to 250.75 lt, which was below the record 276.56 lt of 2005-06. If current trends holds, the 2007-08 season may end up with even lower procurement.