Indian Agriculture

Organic agriculture in the country has grown from 42,000 hectares in 2003-04 to 10.5 lakh ha, according to initial estimates for 2009-10. Out of this, nearly 7.5 lakh ha are fully certified while the remaining 3 lakh ha are under various stages of conversion, minister of agriculture, consumer affairs, food and public distribution Sharad Pawar said today.

Addressing a meeting of the parliamentary consultative committee attached to his ministry, Pawar said, the growth has been significant since India had a mere 42,000 ha under certified organic farming in 2003-04.

Pawar said the agriculture ministry is promoting organic farming in the country by implementing various schemes such as National Project on Organic Farming, National Horticulture Mission, Technology Mission for North East and Rashtriya Krishi Vikas Yojana.

He said two new innovative components – biological soil health assessment and introduction of PGS certification system – have been added to the National Project on Organic Farming from the current year.

The Indian Council of Agricultural Research (ICAR) has initiated an all-India network project on organic farming to ensure the development and promotion of scientifically proven methodologies in organic farming, he added.

Organic farming will not only ensure increased availability of organic and biological source of nutrients but will also provide technologies and information which help other forms of agriculture in restoring soil health and conservation of resources and is an ideal option for rainfed, marginal land and hilly areas, Pawar said.

He called for tapping the growing demand for organic food in domestic and international market for the benefit of farmers and the country.

Besides the efforts of central government various state governments have also started their own organic farming promotion programmes. Karnataka, Kerala, Andhra Pradesh, Maharashtra, Madhya Pradesh, Nagaland, Sikkim, Mizoram and Uttarakhand have already drafted policies for organic farming promotion.

Nagaland, Sikkim, Mizoram and Uttarakhand have declared their intention to go 100 per cent organic in due course of time, he pointed out.

With a combined effect of farmers’ efforts, NGO’s work, government interventions and market forces, Indian organic agriculture has reached a stage where it can play a significant role not only in the growing domestic market but also in global organic food trade, Pawar added.

source- domain-b.com

Boosted by the revival of monsoon rains, the fertilizer sector had been buzzing the whole of Monday. On Tuesday too, most of the fertilizer majors were trading in a high range on the back of the news of existing fertilizer policy, NPS III, being altered.

The government will now bring NPS IV, a note for which is expected to go to Cabinet. The government eventually wants to bring urea along with complex fertilizer under the NBS regime.

“Complex fertiliser decontrol is a step towards reform,” said Kapil Mehan, Executive Director of Tata Chemicals, adding that the new policy would not have any major changes.

US Jha, Former Chairman, Fertilizer Association of India too does not expect it to be dramatically different and said, “The industry wants urea to be under NBS as well.”

Commenting on how the space is expected to perform in the near term, Mehan said though the prices of complex fertilizer have shot up to Rs 600 a tonne since the nutrient-based subsidy (NBS) regime was implemented there is no depression in demand seen for the same.

Expressing concern over the state of the urea space, Mehan said there had been no serious investment in urea since the past few years. “Also, the sales and marketing costs have not been revised in the past 10 years.”

Here is a verbatim transcript of the exclusive interview on CNBC-TV18. Also watch the accompanying video.

Q: This time how have pre-monsoon season sales been for fertiliser companies because June was a bit of a sticky month for many parts of the country, did you witness any kind of sluggishness in sales or is there optimism in sales before monsoons this time?

Mehan: First quarter sales are likely to be slightly less than last year and that is not because of any seasonal factors. It is primarily because the pre-placement in the markets has been less this year as the expectation in the market was that there is abundant availability of fertilizers, the contracting has been done for most of the fertilizers for the whole of the year and the arrivals have already stated and with that expectation. I think the sales in the April-June quarter, which is an off-season quarter, have been slightly less than the previous year primarily in phosphate and potash segments.

Q: Along with the growth in volumes, is there any scope at all for a relook by the government in terms of a pricing increase because globally as it seems fertilizer companies are struggling?

Mehan: As far as price increase is concerned, there are three major nutrients for fertilizers that get sold in India, nitrogen, for which urea is the primary source and the price has already been increased with effect from April 1 by 10%. Phosphate and potashic fertilizers which have been brought under the nutrient based subsidy scheme, the price increases have been of the order of about Rs 600 per tonne with effect from April 1 and that increase has not led to any depression in demand and that price increase is well accepted. We expect that with the monsoon spread now getting wider and far across the country, we should see much better offtake this year on an overall seasonal basis.

Q: In terms of the policy, the NPS IV note is expected to go to the cabinet soon, do you expect any dramatic changes in this note for the sector?

Jha: I don’t expect any dramatic changes because it will be only little refinement of the existing NPS III policy. In fact what the industry wanted was that urea could also come under NBS and thegovernment has agreed. It is only a transition arrangement instead of bringing urea also straightaway under NBS they want to keep NPS for sometime. I don’t know what is going to be the duration, it could be six months or one year or it could be one-and-a-half year, but not much. So we don’t expect much because the changes have taken place, the costs have undergone a change. So I think to capture some of these things, the NPS will bring but basically I think the framework is going to be the same.

Q: You don’t expect any major overhaul in the urea policy over the next month or so?

Jha: No. I don’t think so.

Q: The Supreme Court (SC) judgement in terms of pricing of gas didn’t make any real impact for fertilizer companies but do you expect this policy part IV to address allocation in any shape and form for fertilizer companies?

Jha: No, because the SC has only upheld the price of gas what the government had fixed and we all had contracted at that price. Also, the government has given the highest priority to the fertilizer sector so that remains. So the SC order doesn’t make any difference to the fertilizer sector as such.

Q: At which point over the monsoon period will you get a sense of whether or not sales or at least volumes are significantly higher than last year which was a drought year for us?

Mehan: I think the sales of July should reflect the correct assessment of the monsoon which is likely to be good and if we see the last four-five days when the monsoon has advanced into most parts of northern region and eastern parts of the country, I think most of the country is now covered except the central parts of India and northwestern parts where the rains are still slightly deficit. So I think the sales of July should reflect the revival of demand and expected offtake which is likely to be much better than the last year.

Q: There is a lot of anticipation building up around your sector given that the government has been able to move on oil sector pricing, natural gas pricing over the last few weeks. Are you expecting any major changes in terms of policy for your sector in NPS IV or whatever form?

Mehan: As far as the fertilizer sector is concerned, I think the reforms have already begun and the nutrient base subsidy scheme which the government has introduced for phosphate and potashic fertilizers is, in a way, a major reform where the selling price to the farmer has been decontrolled and it is the maturity with which the industry is moving and not leading to any runaway increases in prices because the backlash on demand can be detrimental in the long run.

I entirely agree that there is not expected to be any major increases. But having said that for the last 19 years the government has been tightening the norms as far as the urea sector is concerned. Due to this, the profitability and the margin structures have either remained stable or have declined and with the result, the last 12 years no serious investment has come into the sector. Also, let us face that it is the only sector which can attract major investments in this sector and we are expecting that government would be taking note of these developments and will not do anything which will not attract investment because that is what is needed as the dependence on import for Indian demand is increasing. Also the size of our country with food security and agriculture being such an important issue can ill afford and I think the highest priority which has been given for allocation of gas, the NPS IV also we expect that the government will give some concessions to theindustry, as it has recognized some of the cost increases which have happened. For example, the sales and marketing costs have not been revised for the last 12 years. The last revision which happened was in 1999-2000 and that is something we expect that the government would correct and while NPS III modified or NPS IV maybe for a shorter while but theindustry is looking forward to nutrient based subsidy scheme getting extended to urea also.

Q: While you were at the helm of RCF, was there any plan then mooted to develop the real estate in Chembur because that seems to have come back now, is it conceivable? I know that you are not engaged in a management of the company any more but is it conceivable from past experience that such a development plan could come about?

Jha: I won’t comment on that.

Q: Can you confirm that the size of the plot that we are talking about is 300 acres and it is in the Chembur area?

Jha: The question is that the fertilizer plant has been set up—the land has been taken for a particular purpose. So we believe that we should go for expansion of the capacity there for fertilizer production.

So these are all conjectures coming, I won’t comment. In any case the management of RCF will deal with these things.

Q: You were heading the Fertilizer Association, what is your sense of how fast the government will move on the NPS IV, we understand that it has already got a bit delayed?

Jha: I think the government should come soon with the policy because the adjusting NPS policy is only upto March 31, 2010. So from April 1, the policy has to come. The government too is very keen to bring a policy in place for urea also.

Source- moneycontrol.com

Eco-friendly perennial grain crops, which grow with less fertiliser, herbicide, fuel, and erosion than grains planted annually, could be available within decades, says a study.

‘Perennial grains would be one of the largest innovations in the 10,000 year history of agriculture and could arrive even sooner with the right breeding programme,’ said John Reganold, professor of soil science, Washington State University (WSU).

 A perennial is a plant that lives for more than two years as opposed to annual that does not live more than a year.

 Reganold led the study with Jerry Glover, soil scientist at the Land Institute in Salina, Kansas.

 ’It really depends on the breakthroughs. The more people involved in this, the more it cuts down the time,’ Reganold said.

 The study is a call to action as half the world’s growing population lives off marginal land at the risk of being degraded by annual grain production.

 Perennial grains, say the paper’s authors, expand farmers’ ability to sustain the ecological underpinnings of their crops.

 ’People talk about food security, that’s only half the issue. We need to talk about both food and ecosystem security,’ Reganold added.

 Perennial grains have longer growing seasons than annual crops and deeper roots that let the plants take greater advantage of precipitation.

 Their larger roots, which can reach 10 to 12 feet, reduce erosion, build soil and sequester carbon from the atmosphere. They require fewer passes of farm equipment and less herbicide, key features in less developed regions.

 By contrast, annual grains can lose five times as much water as perennial crops and 35 times as much nitrate, a valuable plant nutrient that can migrate from fields to pollute drinking water and create ‘dead zones’ in surface waters, says a university release.

 ’Developing perennial versions of our major grain crops would address many of the environmental limitations of annuals while helping to feed an increasingly hungry planet,’ Reganold said.

Source- sify.com

India has been lauded for its remarkable overall economic growth of over 8% over the last five years. But despite this high and relatively stable growth, India’s underbelly is soft. The agriculture sector is performing below expectations, with growth rate of around 2.8%, it is way below the Eleventh Plan target of 4%.

The Food and Agricultural Organisation (FAO) estimates that 22% of India’s population is undernourished. Child malnutrition is especially high, as National Family Health Survey (NFHS-3 ) data reveal that 48% of children under-five years suffered from low height-for-age (stunting ) and 42.5% from low weight-forage (underweight).

This raises some questions — is there no relation between economic and agricultural growth and malnutrition? Can better agricultural performance contribute to bringing down malnutrition levels?

In a preliminary effort to explore this, we map out the level of agriculture performance and malnutrition across some major Indian states to see whether states that have a higher level of agriperformance record better nutritional levels.

As agricultural growth shows high volatility at the state level for certain years, the annual growth rate of gross domestic product (GDP) from agriculture may not be a suitable indicator to assess the relation between agrigrowth and malnutrition.

Thus, rather than growth rate, we use another indicator of the level of agri-performance , namely its land productivity measured as the gross value of agriculture and livestock output per ha of gross cropped area (GVOAL/ha), which captures the growth performance in agriculture during previous years and also if the state has adopted high value agriculture as a means to bring prosperity to its rural people.

To weed out the annual fluctuations in the level of this agricultural prosperity, a three-year average is taken (pertaining to triennium ending (TE) 2005-06 ). To assess its relation with malnutrition, a malnutrition index is constructed from (1) percentage of underweight , stunted and wasted children under-five years of age and (2) percentage of thin men and women (aged 15-49 years; from the NFHS-3 data).

It is seen that there is a strong inverse relationship (coefficient correlation equals -0 .75) between the level of land productivity (or agri-performance ) and malnutrition across the states.

Kerala and Punjab, which have almost the highest value of agri-output per hectare also have low levels of malnutrition, while a state like Madhya Pradesh is at the bottom of value of output, and no wonder it is also lowest in nutritional status (See accompanying graph). This suggests that agricultural performance may be a necessary — but not a sufficient condition — to reduce malnutrition.

As malnutrition has multiple dimensions , a host of other conditions need to be in place in order to tackle this problem. One of the most critical factors for longterm and sustainable impact on nutritional outcomes is the level of women’s education.

International Food Policy Research Institute’s (IFPRI) research on 63 countries (during 1970-96 ) estimates that women’s education accounted for 43% of the child malnutrition reduction during the period. Besides constituting roughly half the population, women take important decisions on family health, education and feeding.

Thus poor and ill-informed decisions have adverse consequences on child health, education and nutrition status, accompanied by a high risk of transmission of chronic malnutrition to future generations.

Some other important factors include improved access to safe drinking water, sanitation facilities and quality healthcare services and infrastructure, better implementation and coordination of existing nutrition interventions (especially those targeting children under-three years of age and pregnant women), better governance and non-farm income growth.

Nonetheless in order to work towards reducing the ‘curse’ that is India’s malnutrition problem, agricultural growth and development remains a critical and necessary factor. Dovetailing certain aspects of agricultural development and nutrition reduction strategies can be a critical step in the right direction.

One option at the sowing stage is the process of bio-fortification of crops with essential nutrients like iron, zinc and vitamin A, after suitable research, quality testing and trials.

Research by the IFPRI in Africa, Asia and Latin America indicates that developing and disseminating bio-fortified crops is a highly costeffective means of reducing micronutrient malnutrition. This can be quite relevant in India as micronutrient deficiencies are very high — for instance in 2005-06 , 69.5% of children and 71.7% of women had some form of anaemia.

Productivity growth via diversification into high value agriculture (fruits/ vegetables, fisheries, livestock) can also promote nutritional security. High value agriculture can firstly be instrumental in boosting incomes of farmers, especially small holders and womenheaded households.

Secondly it also provides more nutritious food for selfconsumption purposes. In order to preserve and even enhance this nutritional value, post-harvest activities like handling , transport, storage, processing, quality control and marketing become imperative , as they are easily perishable.

Finally, innovative solutions to address the nutrition problem are also necessary in the policy implementation front. For instance, to tackle the protein deficit, a more cost-effective and nutritious option is to use soya meal (which has 40% protein compared to 20-25 % in pulses), in food-based safety nets.

India has witnessed relatively high growth in soya crop — between 1981-82 and 2008-09 , production rose from 0.5 to 10.8 million tonnes — but most of the increased output has been used by the feed industry and exported.

Data from the National Nutrition Monitoring Bureau (NNMB) and National Sample Survey Organisation (NSSO) reveal only around 60-75 % of the protein requirement is met amongst people at the bottom 30% expenditure group, adolescents and pregnant /lactating women. Thus reconstituted soya flour can be sold through the public distribution system, as well as distributed in the mid-day meals scheme and Integrated Child Development Services (ICDS) scheme in cooked meals to enrich dietary intake.

(Ashok Gulati is the director-in-Asia and Ganga Shreedhar is a research analyst at the International Food Policy Research Institute . T Nanda Kumar is former secretary of agriculture, government of India)

Source – Economictimes.com

The vital monsoon rains, running late in the main sugar- and rice-producing regions, are not likely to revive in the next few days, the weather office said, raising concerns about rising inflation.

The government is counting on good rainfall in the June-September season to help control inflation, after the failure of last year’s monsoon triggered a sustained rise in prices and made India a large importer of sugar.

So far, the monsoon has covered southern India and parts of eastern and central India but has not moved to other areas in the past 11 days as unfavourable weather conditions have inhibited monsoon winds, the weather office said.

“The latest meteorological conditions suggest that monsoon is unlikely to advance (further) during next two to four days,” the Indian Meteorological Department said in a statement.

However, the monsoon is likely to likely to advance after four days and cover the entire country on schedule by the middle of July, it said.

Rainfall since the start of the season on June 1 has been 13 percent below normal, but the June-September monsoon is still forecast to deliver slightly more than normal rains, the department says.

Monsoon rains, the only source of irrigation for 60 percent of Indian farms, are vital for India, which is the world’s top importer of vegetable oils and ranks among the top producers and consumers of rice and wheat.

But analysts said the delay was disturbing.

“This is not good news,” said D.K. Joshi, chief economist at rating agency CRISIL.

“July is the most critical month from the agriculture perspective. Maximum rains happen in this month. The key thing to look for are signs of softening in food prices,” he said.

India’s food inflation accelerated to nearly 17 percent in mid-June, while overall inflation is above 10 percent.

The government’s decision to raise fuel prices last week also has raised concerns about inflation, heightening expectations that the central bank could raise interest rates by 50 basis points, not 25, at its July 27 policy review.

On Monday, trade officials said the sluggish monsoon had slowed soybean planting.

However, the planting can quickly gain momentum if rainfall improves in the next 10 days, trade officials say.

A.S. Chandel, a director at the Soybean Processors Association of India at Indore, said soybean regions were getting scattered rains and the crop would suffer only if rains were delayed beyond the first week of July.

(Additional reporting by Ratnajyoti Dutta and Suvashree Dey Choudhury; Editing by Surojit Gupta and Jane Baird)

Source – Reuters.com

Compared to last year, there have been good rains in entire Nagpur district and sowing operations are on in full swing. In the week after onset of monsoon on June 16 district has recorded an average rainfall of 108.2 mm so far. Some 25-30% sowing of soyabean, cotton and tur is already over in the district.

Vilas Kolte, agriculture development officer, told TOI that the rains so far have been ideal. “There is enough moisture in the soil for continuing sowing operations for another 4-5 days. Even if it does not rain for this period, it will have no negative effect,’’ he said. Nagpur city recorded 96.1 mm rainfall while rural areas has received 140.9 mm. Bhiwapur has received maximum rainfall during last week at 263.3 mm rain while Saoner had the least at 57.4 mm.

Agriculture department is expecting about 5.24 lakh hectare under Kharif crops which includes 70,000 ha under cotton, 2.8 lakh ha under soyabean and 70,000 ha under tur. This year, there is some shortage of DAP fertilizer needed for soyabean. Of the sanctioned 1.2 lakh MT of fertiliser, only 48.500 MT has been made available in the market. Farmers have so far picked up only 22,000MT. “There is a shortage of DAP. One rake carrying 2340 MT of DAP is reaching city on Thursday and another rake of 2600MT is expected in four days,” said Kolte.

COTTON FAVOURED IN WARDHA
In Wardha district, cotton once again was the favoured cash crop as sowing begun in right earnest. District officials 30% sowing has been completed out of total cultivable 3,61,000 hectare area. Cotton has accounted for over 50% of this with soyabean, tur, rice and other crops making up the rest. District agriculture officer Arjun Tandle said as per tentative figures, cotton has been sowed on some 22,500 hectare. “The farmers have gone back to cotton, which has always been the main crop of the district. Soyabean’s poor yield and price fluctuations over the last two years have disappointed them,” said farmer leader Vijay Jawandhiya.

“Though the region has been declared drought-hit by the government, it does not seem serious about providing effective help to farmers. The district collector had assured crop loans, but banks are not responding to farmers demands,” said Jawandhiya. “The government is so lax because there are no elections in the near future,” he lamented.

CHANDA FARMERS AWAIT RAINS
OIwing operations in district were hampered by insufficient rains. While cotton and soyabean farmers have done a bit of sowing, paddy growers are awaiting good rains. So far, the district has recorded 76.2 mm rainfall against the average 186 mm in June. The district has average of 76.2 mm rains per taluka. “The rainfall figure till still below 50% of average. A few tehsils like Brahmapuri, Nagbhid and Rajura have received good rains and farmers there have initiated sowing. However, other tehsils still lag behind,” said ZP agriculture development officer DM Mankar. “Due to lower price of soyabean, we expect 25% to 30% decrease in its cultivation area this year. Tur could prove a good alternative as it has good market value,” he said. There is shortage of around 20,000 MT of DAP and complex fertilizers here too, he said.

PADDY SOWING BEGINS IN BHANDARA
Paddy sowing operations have begun in the district. Till date, sowing on 1095.30 hectares has been completed. The district has till now received 128.45 mm rainfall. Average rainfall in June is 195.90 mm. According to the district agriculture office, stock of paddy seeds is 32,075 quintals. Paddy seeds are readily available with the department as well as in agro service centres. A total of 15,785 MT fertiliser is available in the district. Buffer stock of 3,696 MT also exists. Demand of 62,715 MT was made to agriculture commissioner but only 49,730 MT was sanctioned. The remaining quota will arrive as per schedule.

Bhandara district central co operative bank has disbursed crop loans of Rs 44 crore to 18,984 farmer members having 51,717 acre of land. Suresh Dhore, a paddy grower, says that the government-supplied paddy seeds are costlier, so farmers are using seeds of their own after suitably treating them.

GONDIA RYOTS EXPECT HEALTHY PADDY YIELD
Rain gods have brought smiles on the faces of distressed farmers of Gondia district promising good crop of paddy this year. Paddy cultivation is expected to cross two lakh hectare mark. More than 25% paddy growers are likely to follow ‘Shri’ pattern of cultivation and use cultured seeds. Gondia district witnessed an average rainfall of 118 mm until June 21. Goregaon received a maximum of 162 mm while Gondia city received 81 mm.

The paddy plantation target for Kharif season in district is 1.95 lakh ha. Normally, seeds are resown in 1.60 ha while paddy is directly sown on 35,000 ha of land where there is no surety of water. ‘Shri’ pattern reduces period of second sowing, requires less seeds and increases production 25%. District agriculture superintendent Manohar Chandrikapure and his officers are urging the farmers through ‘Krishi Dindi’ to use modern means of cultivation to increase production and reduce costs.

BULDHANA HAPPY; AKOLA, YAVATMAL STILL AWAIT RAINS
Farmers are waiting for some more rains before starting sowing operations in full swing in three districts of Akola, Washim and Buldhana in Western Vidarbha. Farmer Babulal Gurukudde said the region needed some more rain to cool the fields down before sowing can start. Akola district has Kharif crops on 4,86,000 hectares. Acreage of BT cotton is expected to increase 5 to 10% this year, whereas 63,000 hectare will have soyabean.

Buldhana has recorded 111mm rainfall — highest among the five districts of Amravati division and also the highest for the 3,740 hectares of cotton seeds, while Yavatmal has reported a scanty rainfall with no sowing operation reported from the district. Sources in agriculture department told TOI that cultivators have geared up sowing activity in Dhamangaon, Nandgaon Khandeshwar, Chandur Railway, Teosa and parts of Morshi and Warud. Scarcity of fertilisers is adding to their woes. This is not confined to Amravati district. Four other districts in the Amravati division have a similar story to tell.

Farmers here are also preferring cotton over soyabean this year but due to indifferent start to monsoon, farmers have postponed sowing to last week of June. District agriculture superintending officer K B Tarkase said that the district had 9.60 lakh hectares under kharif. Of this sowing has been completed in only 1.61 lakh hectares. Fertiliser shortage is a problem here too. “We need 2.55 lakh MT of fertilisers. However, 1.67 lakh MT has been sanctioned so far,” Tarkase said. Soyabean has decreased from 2.85 lakh hectares last year to 2.25 lakh hectare this year. Cultivation of Tur is expected to be up from one lakh to 1.25 lakh hectares this year.

Source – Timesofindia.com