Agricullture in News, September 14
Business Standard
New Delhi, 14 September 2017
Change in agro-credit approach needed : Mundra
S S Mundra, former deputy governor of the Reserve Bank of India (RBI), said public sector banks (PSBs) need to take a focused approach towards long-term agricultural credit and attempts must be made to finance the entire agro-value chain if India wants to improve the current state of affairs in this sector. “Attempts must be made to target the entire agricultural value chain financing, rather than on a solo level. Measures like Kisan Credit Card, agri-insurance, e-connectivity and others are incremental in nature and are not game changers,” Mundra said at the annual general meeting of the Bengal Chamber of Commerce and Industries.
According to Mundra, the agro sector is plagued with lack of new capital formation, as the share of long-term credit declined to 32 per cent in 2013-14, from 74 per cent in 1990-91. The north and south zones together account for 62 per cent of the agro-credit, with the southern region alone accounting for 41 per cent of the total disbursement. Also, the credit in the sector is heavily concentrated, as only 15 districts of the total 600 districts in the country accounted for 21 per cent of the total credit. “Some elucidation is needed to explain this concentration,” he said. Mudra asked the PSBs to take a ‘hard look at their approach’ in rural areas. He said the banks and the country’s policy framework needed to be friendlier towards micro, small and medium enterprises. This sector has the potential to create jobs at a time when it is estimated that around 69 per cent of the current jobs in India might be lost on account of automation.
The Hindu
New Delhi, 14 September 2017
CPI inflation quickens to 3.36%, IIP rises 1.2%
Retail inflation accelerated to a five-month high of 3.36% in August, spurred by sharper increases in the prices of food items particularly vegetables and fruits. Price gains measured by the Consumer Price Index quickened from July’s 2.36%, as the food and beverages segment posted a growth of 1.96% in August, compared with the 0.43% uptick in July. Separately, industrial output as gauged by the Index of Industrial Production (IIP) witnessed a growth of 1.2% in July, rebounding from a contraction of 0.2% in June. Improvements in performance at the mining and electricity sectors buoyed the index, with expansion in the mining sector at 4.8%, up from 0.4% in June. The electricity sector grew 6.5% in July, accelerating from 2.1% in the previous month. Manufacturing, however, grew only 0.1%. Still, this was an improvement from June’s 0.4% contraction.
“Although the IIP has improved compared to the previous month, the level is still very low, so it cannot be taken as a symptom of a turnaround in the economy,” said D.K. Srivastava, chief policy advisor at EY India. “The electricity and mining sectors are largely driven by the government’s own demand. Some improvement was expected because of the government’s own expenditure.” “And if you combine this with the fact that CPI inflation has also started to rise, the economy is still not out of the woods,” Mr. Srivastava added. With retail inflation now edging closer to the Reserve Bank of India’s upper bound for price gains, economists see reduced prospects for any immediate interest rate cut by the central bank. “Notably, core and non-core inflation gauges have jumped in the month, driven by higher transport, housing and possibly transient impact from price changes due to the GST roll-out (eg. health),” Radhika Rao, India Economist at DBS Bank, wrote in an emailed statement.
Mint
Mumbai, 14 September 2017
Maharashtra government looks to revive at least 40 shuttered cooperative sugar mills
The Maharashtra government is considering a unique model to revive defunct cooperative sugar mills in the state, possibly by acquiring them and leasing them out to those who can turn them around. Maharashtra is India’s second-largest producer of sugar, which has long occupied a central place in its political economy. But over time many cooperative sugar mills have been shut, sold or auctioned off. Now, the Devendra Fadnavis government has formed a committee under state sugar commissioner Sambhaji Kadu-Patil to conduct a financial and technical evaluation of the assets of at least 40 shuttered sugar factories and submit a report by 20 September.
“The committee has to recommend if it is financially viable for the state government to acquire these factories and run them on lease,” one of the five members of the committee said, requesting anonymity. He said the intent behind this exercise was to see if the government could step in to prevent them from turning sick or non-performing assets in which case they could face acquisition under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interests Act (Sarfaesi Act). A 4 September government resolution announcing the committee said 40 cooperative factories have closed down in the state. It asked the committee to look at factories that are already sick, have gone into liquidation, or been acquired by banks under the Sarfaesi Act. Milind Akre, general manager of the Maharashtra Co-operative Development Corporation, is member-secretary of the five-member panel which also includes Pramod Karnad, managing director of Maharashtra State Co-operative Bank. Cooperative sugar factories in Maharashtra, mostly based in the western part of the state and Marathwada, have been one of the main levers of the state’s political economy. They have historically been directly or indirectly controlled by politicians from the Congress, Nationalist Congress Party and the Bharatiya Janata Party, in that order.
The Assam Tribune
Guwahati, 14 September 2017
National Mission on Oilseed & Oil Palm in Goalpara
A total of 340 hectares of wasteland has been covered till date out of a target of 600 hectares under oil palm plantation by the district under the Centrally-sponsored National Mission on Oilseed & Oil Palm (NMOOP) 2017-18. The objective of the Mission is to reduce the country’s oil imports for both edible as well as non-edible purposes. A total of around 50 villages have been covered under the NMOOP 2017-18. where uncultivated waste and fallow land has been converted into oil palm farms especially in and around Dudhnoi area where a few enthusiastic farmers and members of SHGs have taken up oilseed farming sensing better options and better yield and more money with minimum care.
The Agriculture (SDO) & Information Officer, Wahid Ahmed said that the total area under palm cultivation is gradually expanding in the district as many youths, especially a section of rubber growers are getting attracted towards the activity as it has great potential for improving their socio-economic condition. He informed that under the NMOOP, hybrid oil palm seedlings are given to the farmer groups free of cost. Then Rs 5,000 is given per hectare/year for four years for maintenance of oil palm plants and Rs 5,000 per hectare /year given for inter-cropping. In addition to this, there is a provision for digging farm ponds and dug wells for irrigation purposes and also provision for training to farmer groups. A total of 700 hectares of land have been covered under palm cultivation in the district, Ahmed added. He further added that the palm trees start bearing fruits after 3 years and the fresh fruit branch (FFB) will be ready for commercial purpose for oil extraction.
The Financial Express
Pune, 14 September 2017
Oilmeal Imports Up 21% In August
Import of vegetable oils during August 2017 was recorded at 13.61 lakh tonne compared to 11.26 lakh tonne in August 2016, up by 21%, according to the import of vegetable oils (edible & non-edible) data complied by The Solvent Extractors’ Association of India (SEAI). The overall import of vegetable oils during the first ten months (November 2016 to August 2017) of the current oil year was reported at 12,749,568 tonne compared to 12,165,605 tonne last year, up by 5%. The increasing import shows that India may be importing about 15 million tonne of vegetable oils by oil year ending October 2017, the SEAI said. The stock of edible oils as on September 1, 2017 at various ports is estimated at 907,000 tonne (CPO 340,000 tonne, RBD Palmolein 150,000 tonne, Degummed Soybean Oil 250,000 tonne, Crude Sunflower Oil 150,000 tonne, 17,000 tonne of Rapeseed (Canola) Oil) and about 1,590,000 tonne in the pipelines. India’s monthly requirement is about 17.50 lakh tonne and operate at 30 days stock against which currently holding stock over 24.97 lakh tonne equal to 43 days requirements.
The Assam Tribune
Guwahati, 14 September 2017
Plans for value addition to tea sector
Acknowledging the challenges the tea sector in Assam is facing in the wake of growing competition in international market, Assam Chief Minister Sarbananda Sonowal informed the Assembly that the State government would approach the Ministry of Commerce for strengthening and value addition of the Assam tea sector. Taking part in the ‘Speaker’s Initiative’ on socio-financial uplift and preservation and promotion of culture of the tea community of Assam and revival and development of the tea trade, Sonowal informed the House that the Union Ministry’s help would also be sought for upgradation of Tocklai Tea Research Institute and obtaining other value added byproducts from tea sector.
Acknowledging the contributions of the tea communities in overall development of the State, the Chief Minister stated that special initiative would be taken to address long pending grievances of tea community people, including the present and ex-tea garden labourers. “More than 40 lakh people directly or indirectly depend on the tea sector in the State. A decent living standard, education for children, employment and health for the people belonging to tea community would be dealt on a top priority,” Sonowal said. Further stressing the quality enhancement of Assam Tea, he said the stature and monopoly enjoyed by Assam Tea in global market has received a setback of late and the competition from African, Chinese and Sri Lankan tea demands special efforts from the Assam Tea to bounce back. “The points raised by members of the House in this discussion would be considered while planning the revival of Assam Tea,” he stated. The Speaker’s Initiative is a new device introduced by present Speaker Hitendra Nath Goswami to discuss the issues of relevance at length and arrive at possible solutions. The government will submit a report on the topic of discussion in next three months.
Business Line
Coimbatore, 14 September 2017
R&D crucial to save plantation industry
The Indian plantation industry is in a paradox, caught between the inability to introduce large-scale mechanisation on one hand, and the need to improve crop productivity on the other. Be it tea, coffee, rubber or spices such as cardamom and pepper, there are concerns regarding the drop in yield levels. While there is the need to address this issue, industry sources aver that among plantation commodities, only tea research is undertaken by the industry, while for rubber, coffee and spices, the research is carried out by the Commodity Boards with full funding by the government. Tea research was being funded at 80 per cent, but this was reduced to 49 per cent during the 12th Plan period, affecting tea research quite adversely, according to sources.
UPASI (United Planters Association of Southern India), the apex body of plantations in the South, which is organising a two-day annual meet in Coonoor from today, is now requesting the government to reconsider funding tea research at 80 per cent as it was during the 11th Plan period. There also appears to be some implementation issues in Tea Board schemes, be it towards annual allocation or developmental schemes. Research and development in coffee in India seem even worse when compared to other coffee-growing countries or R&D achievements in other plantation crops such as tea, rubber and spices. A proactive R&D department is necessary to deliver cutting-edge technological advances in production, productivity, agronomical practices and post-harvest technology. UPASI suggested that the research being carried out by the Central Coffee Research Institute (CCRI) be synchronised with the requirements of coffee growers. As in tea, replanting is also an important investment in coffee to improve the production and productivity of estates to make it sustainable.
The Sentinel
Gangtok, 14 September 2017
SIKKIM CM HONOURED AT AN EVENT FOR WORK IN ORGANIC FARMING
Sikkim Chief Minister Pawan Chamling was honoured for his pioneering work in the field of organic farming during a ceremony at Germany’s Lagau on the occasion of the One World Festival. Chamling was conferred the Grand Prix Award during the One World Award ceremony on September 8 at a mega event attended by nearly 700 guests who had arrived from different countries, said a statement. The award was jointly handed over by Gerd Muller, the Federal Minister of Bavaria, and Joseph Wilhelm, German Organic Pioneer and Managing Director of Rupenzel.
In his acceptance speech, Chamling said: “Fourteen years ago, when we began the organic campaign in our Himalayan province of Sikkim in India, little did I know that years down the line, people and communities would be driving an organic revolution, in different parts of the globe. Today, I feel immensely honoured to be in your company, and to be in solidarity with you, in striving to make the world a better place through organic agriculture.” He said that in 2003 they made a declaration in the Sikkim Legislative Assembly to turn Sikkim into a completely organic state. “After 12 years of consistent work, we were declared the first organic state of the country by the Prime Minister of India on January 18, 2016.” “Our initiatives in Sikkim are led by the belief that clean air, water and appropriate climate are fundamental human rights, and ensuring these for the people is not a question of politics; it is a moral obligation. I also realize that governments alone cannot address this universal crisis. People, communities and governments must work together to overcome the dangers of a fast developing world,” he said.
Mint
New Delhi, 14 September 2017
Uneven rains, lower crop plantings to hit agri growth: Nomura
Growth in India’s foodgrain production and agriculture is likely to be much lower in 2017-18 compared to the year before due to lower plantings of rain-fed Kharif crops and an uneven south-west monsoon, Nomura Research said in a note.
Summer crop plantings in 2017 are down 0.8% compared to the year before as farmers have cut down the area under pulses and oilseeds in response to lower prices, the note said. It added that sowing has also been impacted by an uneven distribution of monsoon with North-west and southern India receiving sub-par rains, and floods damaging standing crops in several states. “The current crop planting progress suggests growth in foodgrain production will be much lower this year,” Nomura said, adding: “Current evidence suggests there are downside risks to our agriculture GVA (gross value added) growth projection of 3.3% year-on-year in 2017-18.” In 2016-17, following normal rains and a record harvest of foodgrain and perishables, growth rate of agriculture sector rebounded to 4.9%, after consecutive years of low growth due to drought. During 2016-17, foodgrain production grew 9.6% yearon-year to a record 275.7 million tonnes. “Growth rate in agriculture could be lower than 2.5% (in 2017-18) as foodgrain production is unlikely to rise year-on- year,” said Ashok Gulati, agriculture chair professor at Delhi-based Indian Council for Research on International Economic Relations. “During the first three years of this government (2014-15 to 2016-17) agriculture grew at an average of 1.8% per year. Given this year’s low growth, the target of the government to double farmer incomes (by 2022) is more of a dream at a time when farmers are struggling for survival,” Gulati added. The June-to-September south-west monsoon which irrigates over half of India’s farm land has so far seen an overall deficit of 6% compared to the 50-year average, data from the India Meteorological Department (IMD) shows.
Mint
New Delhi, 14 September 2017
Uttar Pradesh waives Rs7,371-crore farm loans in phase-I
Following up on its pre-election promise, the Uttar Pradesh government has initiated the process of waiver of crop loans worth Rs 7,371 crore in the first phase, the state government said in a statement. According to the government, loans of 1,193,224 small and marginal farmers will be waived in the first phase. However, disaggregated data shows that for 4,814 farmers, the loan amounts waived are as low as Rs 1-100 per farmer, while for another 6,895 farmers, loans waived range between Rs 100 and Rs 500. The data also shows that for 1,127,890 farmers, the amount of loan waived is higher than Rs 10,000 per farmer.
In April, the newly elected state government announced a waiver of crop loans of up to Rs 1,00,000 per small and marginal farmer owning less than five acres of land. Total loans to be waived is estimated at Rs 36,359 crore and the scheme is expected to benefit 8.6 million farmers. “In a few places, loan waiver certificates of extremely small amounts have created a confusion (among farmers),” the government statement admitted, amid reports from districts like Hamirpur and Bijnor where farmers have received loan waiver certificates for amounts as low as Rs 10. “On Monday, the district administration distributed loan waiver certificates to around 6,000 farmers out of which at least 250 farmers have got waivers of less than Rs 100… we are not yet clear why the amounts are so low,” said Devendra Gandhi, a rights activist from Hamirpur. According to the state government’s official statement, the amount waived in some cases are extremely low as unpaid amount of interest dues have been waived under the scheme for farmers who have repaid most of their crop loans. The announcement of a farm loan waiver in Uttar Pradesh in April has been followed by other states such as Punjab, Maharashtra and Karnataka.
The Economic Times
Kochi, 14 September 2017
Vietnam Takes Spice Out of Indian Pepper
Indian black pepper prices continue to shrink with rising imports from Vietnam routed through Sri Lanka. Prices fell nearly 5% in the last couple of weeks to touch Rs 456 per kg for the ungarbled variety ,a steep decline of over Rs 250 per kg from a year ago. The October futures for delivery in National Commodity and Derivatives Exchange of India (NCDEX) ruled at Rs 454 per kg. Import from Sri Lanka carries a duty of 8% under the SAARC agreement compared with 70% from other countries. “Vietnam exported 3,000 tonnes in July to Sri Lanka. Another 2,000 tonnes were exported in August. Most of these have come to India,“ said Kishor Shamji , a major exporter.
Imported pepper has more takers as they are cheaper. “Imported pepper, available at Rs 350 per kg, are sold Rs 410 per kg by traders. It is sold at a at ` higher rate in North India, although it’s still lower than domestic prices,“ Shamji said. Vietnam has been increasing its pepper output in the last few years. Its production this year as per unofficial calculations are in the range of 2-2.2 lakh tonne. Another 20,000 tonnes supplied from Cambodia to Vietnam for re-export further raises the output of the world’s largest producer. Exporters said Vietnam has exported around 1.65 lakh tonnes till August. “Vietnam pepper price has remained range-bound between $4,200 and 4,800 per tonne for some time now. The buyers are not looking at buying consignments for long periods probably thinking that the prices may drop further,“ said Prakash Namboodiri, chairman of All India Spices Exporters Forum. Asian countries are the largest buyers of Vietnam pepper as Europe has banned it due to pesticide residue issues, he added.
The Assam Tribune
Guwahati, 14 September 2017
Motorcycles, cars used to plough farm lands!
Is it possible to plough agricultural land with motorcycles and cars? This may sound weird but such an incident took place in the Bodoland Territorial Council (BTC) as a special audit carried out by the Comptroller and Auditor General of India (CAG) indicated that the registration numbers of some of the tractors reportedly used to plough the land of victims of ethnic riots belonged to motorcycles and cars. The CAG has also recommended that the payment of bills in such cases should be investigated as apart from giving registration numbers of small vehicles as tractors, there were also instances where it was found that some registration numbers did not exist.
The report said that in order to compensate the production loss incurred by the farmers due to riots, the BTC decided to go for “tractorisation” of 27,368 bigha of land of the riot-affected families at a cost of Rs 2.76 crore at the rate of Rs 1,000 per bigha. The basis of fixation of the rate was not found in any record of the Council. After the proposal was cleared, 121 work orders were issued to the tractor owners and the money was paid accordingly between July to November, 2014. The Agriculture officers claimed that the beneficiaries were selected with the help of village headmen and the chairmen of the village council development committees. Those beneficiaries, however, were not checked or verified by any authority of the land record and revenue department. The payment records did not mention about the beneficiary-wise record and period of “tractorisation” and the quantum of land actually ploughed could not be verified because of lack of records.
