Indian Agriculture

Tamil Nadu is preparing a suitable agricultural strategy based on the application of biotechnology and information technology to meet the challenges posed by climate change, Chief Minister M Karunanidhi said on Saturday. “Tamil Nadu will have to be prepared to face challenges like higher average
mean temperature, adverse change in rainfall and a rise in sea level, as a result of global climate change. We are therefore preparing a suitable agricultural strategy based on the application of biotechnology and information technology,” he said inaugurating a conference here.

The three-day conference ‘Eliminating Hunger and Poverty, Priorities in Global Agricultural Research and Development Agenda in an Era of Climate Change and Rising Food Prices’ is organised by the M S Swaminathan Research Foundation.

Citing the government’s initiatives like rain water harvesting and desilting of tanks for sustainable water security, Karunanidhi said the state is trying to revive the earlier practices of community care and management of tanks.

“We plant to launch a mission for tank fed agriculture in Ramanathapuram district,” he said.

Andhra Pradesh Chief Minsiter K Rosiah, who was also present, said the three focus areas for increasing the stagnating agricultural productivity are investment in irrigation projects, development of suitable dry land crop varieties and increasing the farm yield.

“The central government should take up large irrigation projects are the state governments do not have sufficient resources. The universities and research institutions should develop crop varieties suitable for dry land cultivation,” he said.

Stressing the importance of developing location specific farming systems, Rosiah said the Andhra Pradesh has achieved 6.8 percent growth in agriculture between 2004-09 higher than the United Progressive Alliance government’s target of 4 percent.
Source – hindustantimes.com

Montek Singh Ahluwalia, deputy chairman of the Union planning commission, on Saturday held state governments responsible for failure to achieve an annual four per cent growth in agriculture during the ongoing 11th five-year plan period. He, however, said the Commission was happy that by the end of the current plan period (2012), the agriculture growth rate would be 3-3.5 per cent, better than the two per cent achieved in the 10th plan. “Even during the 12th plan period, we are looking at fixing four per cent growth target for the agriculture sector,” said.

source – business-standard.com

India could achieve a record rice production of 100 million tonnes in 2010-11 crop year on the back of better monsoon this year, a top agriculture ministry official said on Friday. The country’s rice production declined to 89.13 million tonnes in 2009-10 crop year (July-June) from record 99.18
million tonnes in the previous year due to severe drought that affected almost half of the country.

“As we get some rice during Rabi season also and going by good rains in August and September, we can reach 100 million tonnes,” Agriculture Secretary P K Basu told reporters.

He noted that so far rains have been conducive and sowing area in all crops, including paddy, are better than last two years. Paddy acreage so far is higher by 12 lakh hectares than last year at 169.71 lakh hectares.

“We have had two major thrust programmes on eastern region of the country (paddy growing areas) and pulses sector. Therefore, I see no reason why production won’t be good,” he said.

Asked whether the country can achieve a record foodgrains production in 2010-11, Basu said: “There is no stage now for estimation of foodgrain production. But going by sowing, it should make us reach our targets”.

In 2009-10, the country’s foodgrains production dropped to 218.2 million tonnes from a record 234.47 million tonnes in the previous year.

The secretary said that pulses acreage had also gone up and therefore the scenario looked positive, though he pointed out that some districts were bound to have some problems as India is a big country.

Source- hindustantimes.com

NEW DELHI: At a time when agriculture production has become key to economic expansion, the Union Cabinet on Friday will consider a proposal to fulfill its promise of crop loans at a cheaper rate of 5% to farmers who make timely repayment.

In the current year’s budget, finance minister Pranab Mukherjee had proposed to give up to 2% interest rate subvention to farmers who do not default on their repayments, making the effective rate 5% per annum against 7% on crop loans of up to Rs 3 lakh.

At its meeting, the Cabinet will consider the finance ministry’s proposal for releasing interest subvention to public sector banks, cooperative banks, regional rural banks and NABARD for refinancing RRBs and cooperative banks to operationalise the Budget 2010-11 announcement to ensure that farmers get short-term crop loans at 5% for prompt payment.

“In the last budget, I provided an additional 1% interest subvention as an incentive to those farmers who repay their short-term crop loan as per schedule. I propose to raise this subvention for timely repayment of crop loan from 1% to 2% for 2010-11,” the FM had said in his budget speech.

Considering that banks are consistently meeting the agricultural credit flow targets in the past few years, the FM had said that the target for fiscal year 2010-11 had been raised to Rs 3,75,000 crore from Rs 3,25,000 crore in 2009-10.

According to officials, agricultural credit flow by cooperative and public sector banks exceeded the target by 13% in 2009-10. The flow of credit to the agriculture sector increased significantly and banks have surpassed the target by extending Rs 3,67,000 crore worth of loans to farmers.

The banks, including those in the public sector, cooperative and regional rural banks (RRBs), were set a target to lend Rs 3,25,000 crore of credit to farmers last fiscal. Farm credit was extended to as many as 4.82 crore farmers last year and banks gave crop loan to 91 lakh new farmers.

According to official data, public sector banks lent Rs 2,75,000 crore of farm credit, while co-operative and RRBs loaned Rs 58,000 crore and Rs 34,000 crore respectively in 2009-10.

The total farm credit flow in 2009-10 fiscal was higher than the previous year’s Rs 3,02,000 crore.

The planned move comes in the backdrop of sharply lower growth registered in the agriculture sector over the years and drought and severe floods in some parts of the country forcing farmers to commit suicide. Public sector banks were, therefore, asked to bring more farmers into the fold of institutional credit and ensure utilisation of loans for actual agriculture purposes, said an official.

Source – Economictimes.com

NEW DELHI: India needs to focus on improving farm technology and creating an efficient water management system to achieve the targetted four per cent growth in the agriculture sector, a top agriculture Ministry official said on Tuesday.

“If agriculture has to grow at four per cent, the focus will have to be on technology infusion, farm mechanisation, reforms and efficient water management,” Agriculture Secretary PK Basu said at a CII function in New Delhi.

Stating that the climate change would have a major impact on the health of the farm sector, Basu said that the water management would thus be critical to the country’s long-term food security.

The agriculture sector, which contributes around 17 per cent to the country’s total economy, recorded the lowest growth in five years, at 0.2 per cent, in the last fiscal due to widespread drought in 2009.

Agriculture and its allied sectors grew at 1.6 per cent in 2008-09.

The country was not able to achieve the targeted 4 per cent growth in the farm sector in the 10th five-year plan and it seems unlikely even in the current plan period ending 2012.

The four per cent growth in agriculture is critical if the country’s economy has to grow by nine per cent.

India is estimated to have produced 218.2 million tonnes of foodgrains in the last crop year against a record 234.47 million tonnes in the previous year.
Source- Economictimes.com

Ernakulam: Self help is the best help. That’s the new mantra in Kerala. With food prices hitting the roof, God’s own country, Kerala, has decided to revive its agricultural sector and end its decade-long dependence on neighbouring states. So is this the beginning of a new green revolution in Kerala?

Determined to find a solution to check food inflation and rising prices that topple the household budget, women in Kerala are learning the latest farming techniques. Their aim, to cultivate in every bit of unused land and help the state gradually achieve self sufficiency in agricultural production.

Around two-third of the food grains, fruits and vegetables in Kerala, come from other states. With prices already on the rise in these states, Kerala is feeling the pinch. “Kerala is heavily dependent on neighbouring states. We are just trying for an across-the-board attempt at improving not only food production but also livestock production,” said Prabhat Patnaik, Vice Chairman, Kerala State Planning Board.

Around 10,000 hectares of unused land will be covered in Ernakulam district itself. The project will be extended to other areas of the state soon. The Kerala Agriculture University, will train rural women and also create awareness among school children about organic farming.

“We are training 300 women from rural areas in batches on modern, mechanised ways of farming,” said Asha Devi Varma, Principal Agricultural Officer, Ernkaulam District.

It may appear like a small step, but many believe, this is perhaps the beginning of a second green revolution in Kerala.

Source – Ndtv.com

olkata: Finance Minister Pranab Mukherjee and Agriculture Minister Sharad Pawar came together in Kolkata to initiate a green revolution in the eastern states of Bengal, Bihar, Orissa, Jharkhand, Chhattisgarh and eastern UP. Their initial budget is Rs 400 core and their model: China.

In China, one hectare of land yields 6.6 tonnes of rice while in India, it is 3.3. China has 30 million hectares under paddy cultivation whereas India has 45. China produces 200 million tonne of rice per year as compared to India’s 150.

“We should understand the Chinese experiment and whatever corrective measures are possible to take in our own country, we should try to implement,” said Sharad Pawar, Agriculture Minister.

The secret of China’s success: hybrid rice seeds on which it began work in the early ’60s. Bt rice is part of its seed basket. But in that India is still not ready to follow China.

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