Agriculture in News, July 18, 2017
New Delhi, 18 July 2017
ICFA District Agriculture Council to be launched in Lakhimpur
Globalization has revealed challenges that need to be ardently addressed for Indian agriculture to compete with international markets. In accordance with Prime Minister Modi’s vision for boosting farmers income ICFA is creating opportunities for agribusinesses to augment growth and rural development. ICFA envisions empowering farmers and augmenting their incomes by strengthening their grassroots level connect with knowledge, technologies, credit, trade, industry, corporates, agribusinesses and markets through district level stakeholder network support. Towards this objective, ICFA has constituted District Agriculture Councils to function as institutional platforms for interaction between farmers and key stake-holders on farm issues, sharing information and experiences and connecting them with schemes, technologies, trade and markets for a much needed support at the district level. The DAC shall be an effective approach for redressal of desirable change indicators and meticulous monitoring. District Magistrate, Akash Deep will be launching the first ICFA District Agriculture Council at the Collectorate, Lakhimpur, (UP) on Friday, 21st July 2017. This DAC shall be mandated to create and provide for the farming community at the district level an interface enabled with knowledge, technical knowhow, policy expertise and community to catalyze transformational changes in agri-food economic ecosystem of the district.
The Pioneer
New Delhi, 18 July 2017
Crop loan waiver: Maha to develop software to curb human role
The Maharashtra Government is developing a software to prepare the list of farmers eligible for crop loan waiver. The move is aimed at bypassing manual interference in list preparation, keeping a check on malpractices that crop up during the process and ensure that only eligible farmers reap the benefits of a loan waiver. Cooperation Minister Subhash Deshmukh cited experience of the 2008 loan waiver scheme wherein many non-eligible farmers walked away with the benefits leaving the needy farmers in the lurch.
“The 2008 loan waiver scheme, benefitted many non-eligible farmers, while those in need and eligible ones were kept away,” Deshmukh told. “In 2008, all the documents of outstanding loan, bank accounts and eligibility were processed manually. It was carried out by officials in cooperative banks, who under influence of local political leaders, favoured some persons and got their loans waived,” said Deshmukh. “These persons were not eligible, but because the documents were processed manually, politicians could manipulate it resulting in non-eligible farmers getting a loan waiver,” he said. The Minister said, “As per my information, around Rs 9,000 crore outstanding loans from Maharashtra were waived when the then UPA government introduced the relief package. “Out of it, Rs 180 crore worth amount was of non-eligible farmers which was later pointed out in CAG report. As a follow up of it, state government insisted those farmers and persons to repay the amount but not more than Rs 150 crore have been recovered so far.” Deshmukh said, “In the backdrop of previous experience, the state government decided to develop a software for implementing such largescale loan waiver scheme. “It will have an in-depth database of farmers, their land holdings, all the bank accounts along with linking of Aadhar number to these accounts and to the land owned. “If available, PAN will also be linked to the farmers account.”
The Financial Express
New Delhi, 18 July 2017
India will become self sufficient in pulses, oilseeds : Agri Minister
Agriculture Minister Radha Mohan Singh exuded confidence that India will become self- sufficient in pulses and oilseeds production in the coming years with the government taking steps to boost yields through use of better quality seeds and technologies. The country imports over 5 million tonnes of pulses and about 14.5 million tonnes of vegetable oils (comprising edible and non-edible oils) every year to meet domestic demand. Addressing the 89th foundation day of the Indian Council of Agricultural Research (ICAR), Singh said the government is not only focusing on increasing production but taking steps to make agriculture “income-centric” as part of its target to double farmers’ income by 2022. The minister asked ICAR scientists to work in a mission mode to achieve this target as well as the overall development of agriculture and allied sectors, which contribute 18 per cent to GDP. He emphasised on skill development in agri sector to boost crop yield and farm income.
Singh said the green revolution helped India in becoming self-sufficient in wheat and rice, but the country is still importing pulses and oilseeds to meet domestic demand and spending huge amount of foreign currency. “We achieved a record production of pulses in the 2016-17 crop year. The sowing area is also higher this year. We are progressing towards self-sufficiency. In next 2-3 years, we will become self-sufficient in pulses,” he said. On oilseeds, he said the efforts are being made through more than 600 Krishi Vigyan Kendras (KVKs) across the country to boost productivity and production. The country’s pulses production increased to record 22.40 million tonnes in the 2016-17 crop year (July-June) against 16.35 million tonnes in the previous year. Oilseeds output rose by 29 per cent to 32.52 million tonnes last year. Minister lauded efforts of farmers and scientists for record 274 million tonnes of foodgrain output in 2016-17.
The Economic Times
New Delhi, 18 July 2017
No Breach of Farm Subsidy Limits, India Tells WTO
India has informed the World Trade Organization (WTO) that it did not breach the permissible farm subsidy limit between 2011-12 and 2013-14. India recently submitted its farm subsidy details for these three years to the multilateral body. Putting to rest doubts of developed countries that India’s farm subsidies have been on the rise, New Delhi told the WTO that input subsidies that include those for fertilisers, irrigation and electricity fell to $22.8 billion in FY2014 compared with $29.1 billion in FY2011. These are part of the `green box’ or non-trade distorting subsidies that are allowed without limits for countries such as India that has millions of poor farmers.
India doled out $18.3 billion in FY2014 `green box’ subsidies, significantly lower than $24.5 billion in FY2011. Put together with the $22.8 billion of input subsidies especially for developing countries, the total outgo was $41.1billion. According to the agricultural census for 2000-2001, 98.97% of farm holdings were of low-income or resource poor farmers. The percentage increased to 99.15, according to the 2005-2006 agricultural census. India provides domestic support to agricultural producers mainly through operations of agriculture ministry. All support is covered by the domestic support categories that are exempt from reduction commitments under the WTO’s Agreement on Agriculture. The United States’ farm subsidies in 2009 were to the tune of $101 billion. “This shows that other countries’ concerns were misplaced because our subsidies have declined when theirs have risen, especially those where there is no limit on the increase,“ said an expert on WTO matters, who did not want to be named. BJP-led NDA government has toughened its stance on food subsidies ever since it came to power in 2014. Government indicated in notification to WTO that another $14.7 billion was spent on public stockholding for food security purposes, another `green box’ complaint element that was $13.8 billion in FY2011.
Financial Chronicle
New Delhi, 18 July 2017
Onus of pulses procurement may go to states
Government is planning to shift responsibility of procuring and distributing pulses to states while Centre will play a supervisory role in functioning of Rs 11,000 crore price stabilisation fund (PSF). Since fund is huge and procurement has to be completed within a specified period, states will do a better job if they are provided the necessary policy support and funds, sources in the consumer affairs ministry said. The secretary in the department Avinash Srivastava, who assumed charge in the last week of June, held a meeting with senior officials and asked them to explore the possibility of states maintaining the buffer stock of pulses, sources said.
Centre has created a buffer stock of pulses by utilising funds from PSF with the objective of intervening in the open market in case prices rise. However, it has been also selling the pulses fearing damage even though farmers complain of not getting minimum support prices (MSPs) due to over supply. The plan is to create a PSF at the state-level to maintain the buffer stock of pulses, but the fund will be provided by the consumer affairs ministry, the sources said. However, the Centre will monitor the procurement and distribution operation of the states, the sources added. The finance ministry has made available Rs 11,000 crore under PSF for purchase of pulses, even as the budget allocation for 2017-18 was Rs 3,500 crore. The fund required is more because of the huge volume to be procured while there will also be income from selling the pulses in the market or to the states, an official said. So, the government has only to bear the losses and handling costs in maintaining the buffer, he added. The Centre has 20.44 lakh tonnes of pulses including 3.78 lakh tonnes of imported grains in its buffer stock as of July 9, official data show.
Free Press Journal
Mumbai, 18 July 2017
People who sold tur dal posing as farmers on Maharashtra government radar
As many as 4,000 persons who sold tur at various procurement centres in Maharashtra posing as farmers are now on the radar of the state government. Principal secretary of the state agriculture ministry Bijay Kumar has issued orders to all the district collectors to submit a detailed report where “suspicious farmers” were found to have sold tur (pigeon pea) at these centres.
The state government had to set up procurement centres for tur due to the bumper production of the crop which resulted in a dip in its prices pushing the farmers into a debt trap. “I have issued orders to the district collectors and hope to get a detailed report from them in the next 10-days,” Bijay Kumar told. “Prima facie from transactions such as bank accounts and 7/12 extracts we found that there are around 4,000 persons who posed as farmers and sold tur at the procurement centres in the state,” said a senior agriculture officer. “There will be more clarity once a detailed report is available from respective district collectors,” the official said. Maharashtra government to scrutinise disparity in land, tur dal production. “The government suspects that some people, mostly traders sold tur posing as farmers at these centres which were set up to purchase the commodity only from farmers at rate of Rs 5,050. “Many traders had purchased tur from farmers in advance at a lower price and to book profit they posed as farmers and sold the tur to these centres,” said the officer. Maharashtra chief minister Devendra Fadnavis had in May this year alleged that there was largescale malpractice during tur procurement. He even claimed that corruption in procurement could be to the tune of Rs 400 crore. The state government, after completion of tur procurement has now issued orders to probe the cases where discrepancies were noticed.
The Times of India
Panaji, 18 July 2017
Need to redraft agriculture policy with Goa as focus
Goa Agriculture minister Vijay Sardesai said that the government will redraft the agriculture policy with a focus on Goan agriculture products, floriculture, contract farming and community farming. He also said that the government is in touch with companies from Israel and Netherlands to produce new species of orchid which will be recognized as flower from Goa. Sardesai said that the policy will focus on giving good price to local cultivators. “We have to support those hard working farmers in the state, especially the Canacona farmers who work hard,” he said. He also said, “To overcome problems faced by farmers we have to create a brand for agriculture products of the state. We have to give preferential treatment to local vegetables as compared to vegetables procured from Belgaum”. “We have to create a brand so that it benefits local farmers in the state,” Sardesai said and that the brand would be created through advertisements. He also said, “We are a tourist state and starred hotels can buy these products.” “We want to promote organic, bio organic and floriculture in the state,” and further added that Union agriculture minister has a unanimous view that Goa should push for floriculture in the state and that is where we can flourish. “I am talking to Netherland and Israel-based companies, even to the extent of trying to create an orchid from Goa. I want to create a new flower called Goa orchid,” he said. He said that agriculture policy will be finalized within a year time. Sardesai gave an example of a farmer from Canacona who had sold turmeric for just Rs 7 per kg as he did not have place to store the produce, even though it commands a high price in market.
Business Line
New Delhi, 18 July 2017
US asks India to ease registration rules for electronic items
The Donald Trump administration has upped the pressure on India to ease registration rules for US electronics and information technology product suppliers to the country. A team from the US Trade Representative’s (USTR) office, in a recent meeting with officials from the Commerce & Industry Ministry, stressed that India should accept quality certificates issued by the US for registration of American companies and not insist on testing in its own labs, a government official told.
New Delhi, however, is not willing to oblige and the Indian team indicated that the matter could be sorted out only if the US returned the favour in areas such as drugs and agriculture. “The USTR team, led by Deputy Assistant USTR Tanya Menchi, argued that the order making it mandatory to test the notified goods in Bureau of Indian Standards (BIS) labs was acting as a trade barrier for American companies as it was a time consuming process and also increased costs,” the official said. The requirement is part of an order of the Ministry of Electronics and IT stating that no person shall manufacture or store for sale, import, sell or distribute goods which do not conform to the Indian standards specified in the order. Manufacturers of these products are required to apply for registration from BIS after getting their product tested from BIS recognised labs, it added. While the order covered about 15 electronics and consumer goods when it was notified in 2012, the list has now grown to 31 items. These include laptops, notebooks & tablets, plasma and LCD/LED televisions with screens 32-inch or above, mobile phones, smart card readers, microwave ovens, set top boxes, printers and scanners and electronic games. Exporters of Indian pharmaceutical products and agricultural items such as mangoes to the US have to carry out tests under the vigilance of American departments which has served as an impediment for long.
The Times of India
Indore, 18 July 2017
Israel to train MP farmers in flowers & oranges farming at Sehore, Shajapur
Israel will soon set up two agriculture excellence centres in Madhya Pradesh in collaboration with the Union government to impart training to farmers growing flowers and oranges, Consul General of Israel David Akov announced. “A total of 26 agriculture excellence centres are being set up in nine states of the country, while 15 such centres in states of Maharashtra, Karnataka, Haryana and Gujarat are already operational, 11 more will be developed soon,” said Akov while addressing a press conference.
In Madhya Pradesh, the two centres will come up at Shyampur in Sehore and Dheripal in Shajapur. At Sehore, the centre will train farmers in cultivation of flowers, whereas in Shajapur, techniques of growing oranges will be taught to farmers. Akov also suggested the implementation of ‘Moshav’, a community farming concept prevalent in Israel, in India. It can help farmers double their income. This concept involves coming together of all farmers cultivating their produce adjacently and discussing and sharing ideas on how to optimize their production by finding out cheap and efficient ways of marketing, animal husbandry, buying seeds, fertilizers etc. “This practice has helped Israel greatly in doubling their agricultural income,” Akov added. Akov also interacted with Indore municipal corporation commissioner Manish Singh to discuss the possibilities of using technology for better management of the city and implementation in Smart City projects. Akov also appreciated the IMC’s efforts, which led it to being ranked number one in terms of cleanliness. Akov said that the effort was visible on the streets of Indore city. Akov is the first member of the Israel embassy to have visited Indore.
Business Line
New Delhi, 18 July 2017
All about chana futures
The National Commodity and Derivatives Exchange (NCDEX) has relaunched chana futures contract (CHANA). It was suspended by SEBI last year when there was a sharp spike in spot prices of chana. The re-launch will help Farmer Producer Companies and other participants across the country hedge against price volatility. The exchange reported that prior to suspension of the contract, about 2,500 farmers from Madhya Pradesh had used chana futures to hedge their risks. The CHANA contract has started to trade from July 14. Contracts expiring in the months of September 2017, October 2017 and November 2017 are available for trading now. On its first day of trade, the contract registered a volume of ₹91 crore with 17,380 tonnes being traded.
The CHANA contract will be traded Monday through Friday between 10 am and 5 pm. As with any other contract, expiry will be on the 20th of the month. One lot of the contract will be 10 tonnes, but price quotation will be on the value for one quintal. The maximum order size allowed is 500 tonnes. It is a compulsory delivery contract with Bikaner as the basis centre as in the old contract. This time, Ganj Basoda has also been included as a delivery centre. In the new contract, quality specification on the underlying — chana — has also changed. Earlier, it was desi chana, now it is unprocessed whole raw chana (not for direct human consumption). If you want to take positions in the futures contract, a minimum of 4 per cent as initial margin (on contract value) will be required. A special margin may also be imposed on the buy side or sell side, or both, if the regulator or the exchange finds increased volatility in prices. GST (Goods and Services Tax) will be payable by the traders on the gross amount charged by the commodity exchange.
