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AGRICULTURE TODAY
Contents
August 2011
18
Cover Story
, No. 8
Volume - XIV
Editorial
Editorial Comments
News Corner
01
04
06
Cover Feature
Farm Mechanization : Indespensable Need
of the Hour
18
In Conversation
Mr Jerome Bonnafont, French Ambassador
36
Interview
Sheela Thomas, Chairperson, Rubber Board
40
Thought
Are we moving towards self sufficiency in
pulses?
42
36
Perspective
Exploring Horticulture
44
In Conversation
Research
Livelihood and nutritional improvement of tribal
dominated areas of South Rajasthan through
vegetable cultivation
46
Farm Mechanization
50
Notion
The policies are failed to solve the problems of
farmers
49
Face to Face
Face to Face
Dr. Vincent Darlong, Country Programme Officer,
India of IFAD
50
Situation
Present scenario and future need of edible
oil in India
57
59
Different Strokes
60
59
Know Your Minister
Jayanthi Natarajan
August 2011
AGRICULTURE TODAY
Editorial Comments
he empowered group of ministers (eGoM) recently decided on two important steps seen
crucial for management of foodgrains. The first was the finalization of the National Food
Security Act (NFSA) and, secondly, extending the term of the Nandan Nilekani committee to explore the possibility of introducing cash transfers for delivering food subsidy directly to the poor.
Another linked decision was to allow exports of wheat and rice to international markets. The
decision making has been disappointing. The eGoM watered down the proposal of the National
Advisory Council on the NFSA. The ministers proposed a food law that would cover only 68%
of the population, close to 80 million fewer than what the NAC wanted. The excuse? Limited
availability of foodgrains. Interestingly, the group agreed to allow exports of foodgrains as the
country has a surplus with little storage space. With a record output of 241 million tonnes (mt)
this year, we have enough foodgrains not only to feed the domestic population, but also subsidize international consumers through exports. Of course, only one of these can be true. Either we
have shortage of foodgrains that justifies pruning down the NAC proposal or we have so much
surplus that export is the only way out. The reality is somewhere between those extremes and
unfortunately, as in many other areas of governance, the problem of surplus has been created
due to a policy paralysis. This chaos in food management has happened in the last three years
despite prudent advice from the governments advisers. Today, there are 65 mt of foodgrains in
government stocks against the buffer and strategic reserve requirement of 32 mt.
How did the stocks build up to this extent and why is the country not able to reduce their
level? In the last three years the governments procurement effort led to an accumulation of 60
mt of grains, close to what the expanded NFSA desires. At the same time, the government was
unable to offload stocks. The average off-take was less than 50 mt every year, leading to an
addition of almost 10-15 mt every year. Clearly, the problem is neither production nor procurement, but one of management. Essentially the issue is that of distribution. The problem is not
new and this has been the situation for almost three years now. But do we know how to get rid
of the stocks.
Last year, the chief economic adviser (CEA) of the Union finance ministry, Kaushik Basu ,
wrote a working paper (later published in Economic and Political Weekly) on how to manage
foodgrains. The paper made several important statements based on sound economic reasoning
backed by analytical models. First, it argued that the problem was not of storage. Secondly, it
argued that the price at which foodgrains are distributed should be lower than the price at which
it is procured, the Minimum Support Price. And third, but vitally, the produce should be sold to
large number of small traders/consumers in small batches. The last point implies that the best
way to achieve the objective of sound management is to enlarge the number of buyers with
frequent delivery/sale of foodgrains. It is not surprising that the only way to enlarge the number
of buyers is universalization as that is the way to maximize the possible number of buyers in the
economy. Any attempt to reduce the number of buyers will not help in resolving the problem.
It also implies that the best way to achieve the stated objectives of foodgrain management is
frequent distribution. Nothing could be better than selling it monthly or weekly. In other words,
a universal and expanded NFSA makes for not only good politics, but good economics as well.
Unfortunately, Basu seemed less than convinced of his own results and the latter half of the paper argued for a system of cash transfer. It is a different matter that the issue of cash transfers
was neither a result that was derived from the analytical exercise outlined in the paper nor is it
in any way helpful in ensuring proper foodgrain management. Incidentally, it is also not helpful
in ensuring food security for the poor.
But why was the advice of sound economic reasoning crucified at the altar of wrong politics? While there are no plausible explanations, the problem has worsened in the last one year.
So much so that today we are in a situation that is reminiscent of the summer of 2001. That
was the time when foodgrain stocks were at near sky-high levels. The irony is that the solutions
are similar to what was advocated then, with India exporting around 15 mt of foodgrains in the
international market after 2001 to get rid of the excess stocks at a time of severe agrarian crisis.
Unfortunately, after a decade of activism and monitoring by the Supreme Court, we will be again
exporting foodgrains at a price cheaper than domestic prices, effectively subsidizing international
consumers. But we refuse to universalize the NFSA, despite strong economic and political arguments for it and foodgrain production increasing by 30-40 mt. Needless to say, history repeats
itself, the first time as a tragedy and next time as a farce.
August 2011
AGRICULTURE TODAY
Corporate
Corner
Fertiliser major Indian Potash Ltd (IPL) has decided to foray into the infrastructure sector
with plans to invest upto Rs 1,500 crore for setting up a greenfield port in Gujarat, a top
company official has said. IPL, which is a leading importer of di-ammonium phosphate
(DAP) and muriate of potash (MOP), will soon apply for the governments approval for
the port project. We are planning to establish a greenfield port in Kuda, near Bhavanagar
district in Gujarat, with an investment of Rs 1,200-1,500 crore, IPL managing director Mr
PS Gahlaut said. The company will soon be applying for various port clearances with the
government of India and Gujarat, Mr Gahlaut added. An important aspect of IPLs operations is its port operations. By virtue of being in the trade for a long period and handling
huge quantities, the company has established an efficient port handling operation, Mr
Gahlaut noted. Setting up a port was a logical step for us as we already have a long experience in port handling
operations.IPL is engaged in import and trading of fertilisers like MOP, DAP and urea. It had imported around
9.4 million tons of fertilisers in 2010-11 fiscal.
Joint venture
Posco in south
With good bush conditions and favourable showers in majority of the estates, Tata Coffee expects normal output this crop year. Tata Coffee Chairman, Mr R.K. Krishna Kumar, said This
coffee crop year (2011-12) will be on year with anticipated increase in the crop. With the
good winter showers during October and November 2010, the bushes are looking healthy and
the prospects for the coming year appear to be good and the crop estimates indicate a good
crop in both the growing areas of Kodagu and Hassan, he added. The companys arabica
output is projected to increase substantially in the short-term with large replanting/consolidation programme undertaken at estate level.In 2010-11, Tata Coffee harvested 1,670 tonnes of arabica against
2,171 tonnes in the previous year. Arabica production was poor across all the three planting districts of Karnataka (Kodagu, Hassan and Chikmagalur). The decline is mainly attributed to failure of rainfall during the crucial
months and also unusual and continuous rains during October and November.
Corporate
Corner
Fertiliser maker Coromandel International, part of the Rs 17,000-crore Murugappa Group, has signed an agreement with Qatar Fertiliser Company
for supply of urea. Qatar Fertiliser at present produces over three million
tones of urea, with the company aiming at increasing its capacity to 5.6
million tonnes. Coromandel is the first company in India to have been
granted direct import permission of urea for captive consumption. We are very excited with this agreement as
it paves the way for a long term association with a reputed global urea manufacturer. This will be particularly
important when urea fertiliser is de-canlised, Mr A. Vellayan, Chairman of Coromandel, said. The company
clocked a turnover of Rs 7,527 crore in 2010-11.
The Department of Fertilizers (DoF) has raised concerns before the Ministry of External Affairs (MEA) over the
inability of Indian companies to import potash due to an increase in the prices of the commodity by an international cartel, even as the industry is expected to reach a consensus by the end of this week. India had been a
net importer of potash for several years now and has been buying it at a price on par with China on the basis of
landed cost. While China had been able to source it at $400 a tonnes this financial year, the international potash
cartel led by Canada-based Canpotex has urged India to buy it at $500 a tonnes. The department has drawn
MEAs attention to the issue that since India is now a larger market than China, hence, it should not pay a price
higher than what was offered to China. For the government, a higher price would translate into higher subsidy
as India is the largest importer of potash at five million tonnes. US Awasthi, managing director, Indian Farmers
Fertiliser Cooperative Ltd, had said it was a question of national pride. We import over six mt of muriate of
potash annually, which is more than the 3.5 mt by China. So, why should we have to pay more?
NSL Sugars, an arm of NSL Group, has acquired the integrated sugar plant of Jay Mahesh Sugar Industries
in Beed district of Maharashtra with a capacity of 5,000 tonnes of cane crushing per day or TCD, taking the
companys total capacity to 25,000 tcd. Though the company has not indicated the value of the deal, it put
the total value of Jay Mahesh assets at Rs 300 crore. NSL has bought the entire stake owned by the Chandigarh-based Spray Engineering Devices Limited
(SEDL). The Beed plant also housed a 100 kilolitres per day (KLPD) distillation
facility and 30 MW cogeneration plant. The acquisition marks our entry into
Maharashtra, Mr M. Prabhakar Rao, Chairman of NSL Group, said . NSL Sugars runs four plants operating in Karnataka and Andhra Pradesh. The new plant
we acquired has superior technology. It will allow us better recovery of sugar at 11.50 per cent as against the
average of 10 per cent in other sugar mills. We are hoping that the addition of cogeneration and distillation
capacities will be executed by next two sugar crushing seasons, Mr Hari Vallurupalli, Joint Managing Director
of NSL Sugars Limited, said.
Despite a decline of 7 per cent in pesticide consumption globally, in India, there is a 6-7 per cent increase
in pesticide consumption, which can be attributed to Indian farmers lack of knowledge on safer agricultural practices, said Dhirendra Kumar, managing director, Camson Biotechnologies. Foreign countries
are aware of the dangerous risks posed by pesticides and its impact on the environment, particularly in
water contamination, he said. Presently, the global market for agro-chemicals is valued at $50 billion, of
which herbicides account for 50 per cent, while the balance is shared between insecticides, fungicides
and acracides. In India, some farmers are embracing highly tolerant and super-strong seeds that will help
withstand attacks from pests and other environmental factors. As years progress, we will see more farmers acknowledging the harmful effects brought about through the usage of chemical pesticides. Globally,
there is a higher use of genetically modified seeds that require less pesticides, Kumar said. He further
said that there are wild allegations floating around GM crops.The US has been using GM food for more
than a decade now with no trace of consumer dissatisfaction. About 75 per cent of all processed foods
in the US contain a GM ingredient, with soybeans and corn being the most popular GM food available in
that country. This is the proof that GM crops are harmless and fit for human consumption.
August 2011
AGRICULTURE TODAY
Policy
NOTES
The final draft of the proposed food security Bill approved by the finance
and food ministries has a provision for creation of a national food security commission for implementation of the mega scheme that aims at
providing subsidized grains to close to two-third of the countrys population. The commission, to be headed by a chairperson, member secretary
and five other members including civil servants and food experts, will be
located in New Delhi. Similar bodies will be set up at the state level also.
The Bill has a provision for food security allowance (cash payment) in
case of the failure to provide beneficiaries with subsidized grains due to
poor monsoon. It also envisages creation and maintenance of scientific and storage facilities at the state, district
and block levels for ensuring steady flow of grains under the Targeted Public Distribution System.
The World Intellectual Property Organization has announced clearly that it intends to
play a roleand considering the clout WIPO enjoys it implies a significant partin promoting intellectual property (IP) in agriculture to enhance productivity. The UN body
stepped into this touchy arena with a seminar at its Geneva headquarters that has gone
almost unnoticed. The seminar had just a handful of participantsIndia was one of
themfor the day-long deliberations on How the Private and the Public Sectors Use
IP to Enhance Agricultural Productivity but its rationale for pushing IP is fraught with problems. It believes that
one of the reasons for hunger and malnutrition in many developing countries is insufficient agricultural productivity which does not keep pace with increasing demand for food due, essentially, to population growth.
This in itself is bound to deepen the deep divisions in the food security debate. Malnutrition is persistent with
the country accounting for 42 per cent of the worlds underweight children. WIPO, however, has taken the
position that the issue is primarily lack of incentives to develop or to introduce appropriate agricultural technology, including better adapted varieties of plants. Its note on the productivity-IP link states that there is ample
evidence that a suitable legal and administrative framework of IP protection may provide a key incentive for
creativity, investment and knowledge transfer in many different circumstances and in agriculture in particular,
for both the public and the private sectors.
The government notified the Cabinet decision to allow fertiliser firms to fix
the retail price of phosphatic (P) and potassic (K) nutrients, such as DAP, but
asked them to keep the rates at reasonable level. The Cabinet had allowed
firms to increase DAP price by up to Rs 600 per tonnes over and above the
maximum retail price (MRP) of Rs10,750 a tonnes prevailing then. The market price of subsidised P and K fertilizers, including DAP, will be open and will
be fixed by the fertiliser companies at reasonable level, Fertiliser Ministry said
in a notification issued . Under the nutrient-based subsidy (NBS) regime introduced from April 1, 2010, the retail price of 22 varieties of P & K fertilisers
has been freed. For the 2011-12 fiscal, government raised NBS of P&K fertiliser to insulate companies from high global prices, but restricted them from hiking the MRP beyond Rs 600/t.
Policy
NOTES
Atul Joshi Fitch Ratings India Managing Director and CEO Atul Joshi says
fiscal deficit will grow to 5.6 per cent of the Gross Domestic Product
(GDP) this financial year if disinvestment proceeds are not included and
if they are, it would grow to 5.1 per cent from 4.7 per cent during 201011. He, however, expects the economy to grow at 7.7 per cent against
8.5 per cent last year. The Reserve Bank of Indias monetary tools cannot
rein in food inflation, and now manufactured products inflation has to be
controlled. Fitchs affirmation of Indias rating is based on prevailing and
likely macro-economic and financial situations. Rating movement would
depend on factors ranging from benefits of structural financial reforms resulting in a strong improvement in the
fiscal deficit and general government debt ratios to improving investment climate supporting greater infrastructure investments and sustained decline in inflation rate.
Recently the Government launched one of its revamped and ambitious anti-poverty programs under the new
name of National Rural Livelihood Mission (NRLM). The move is said to be keeping in view the not-too-distant
elections and the vast vote bank in rural India. The program, being hyped up as the next big thing after Mahatma
Gandhi National Rural Employment Guarantee Scheme (MNREGS), is said to take care of 70 million people below poverty line in 600,000 villages spread across 600 districts. If we take a closer look at the SHGs, then we
see that these groups under NRLM would at the most produce local and traditional handicrafts, which do not
have the kind of market that is needed to sustain such a programme. So, what would follow is not something
that is going to be employment generation as such, rather it would be mere thrusting of money under the poors
nose. Therefore, for the program to be successful, skill-development is the top requirement.
Both the Union and Maharashtra governments are planning to provide a subsidy to farmers for the purchase of sugar cane harvesters because getting farmhands is becoming difficult amid a likely
increase in cane acreage. The agricultural ministry is working out
a new scheme for agricultural implements, particularly for sugar
cane harvesters, said Union agricultural minister Sharad Pawar .
At the Union government, the agricultural ministry and the sugar
development fund are planning to share the subsidy burden. At the
state level, the state government and individual mills are expected
to bear the rest of the cost. The harvesters cost from Rs 80 lakh/
unit to Rs 1.25 crore/unit.We are planning to make a provision
of Rs 100 crore from the Rashtriya Krishi Vikas Yojana to fund
200 harvesting machines on a pilot basis, said state cooperation
minister Harshvardhan Patil. The Gujarat government has started giving incentives to mechanical harvesters
from last year. The Union agricultural ministry expects that ultimately about 50% of cane could be harvested by
machines. However,there are some technical limitations on the large-scale use of harvesters because imported
machines, designed for big farms, are not suitable to Indian conditions. The use of machines requires the adoption of specific sowing techniques as against the traditional sowing methods. Mills have not met with much success in convincing cane growers to adopt to the new sowing techniques suitable for mechanical harvesting.
Throwing a gauntlet at the Congress, the Bahujan Samaj Party (BSP) said that if the ruling party at the
Centre was really concerned about farmers problems, it should bring a uniform national policy on land acquisition at the earliest. The Congress `drama will neither solve farmers problems, nor will it help them
win votes. Instead, the Yuvraj and his company should mount pressure on the Union Government to bring
a legislation on land acquisition, BSP spokesman said in a state ment issued .If the Congress is facing
problems in formulating a policy, it can copy UPs land acquisition policy which is the best in India so far,
the spokesman said.The reaction of the party came in the wake of Congress national general secretary Rahul Gandhis three-day padyatra which took off in three districts of western Uttar Pradesh, including twin
villages of BhattaParsaul.
August 2011
AGRICULTURE TODAY
State
ROUNDUP
Ten states have been selected for the newly instituted first Krishi
Karman awards for best performance in raising production of food
grains. Three awards are being given for total food grain production and four awards for production of rice, wheat, coarse cereals
and pulses ~ the crops that constitute the food grain basket.The
NDA constituent Akali-led governed Punjab and Ms Mayawati-led
BSP governed Uttar Pradesh are the joint winners of the Krishi
Karman award in the category of states with overall food grain
production of more than 10 million tons recorded in the last five
years. Assam and Orissa get the award in the category of states
with overall food grain production of between one and 10 million
tons. Tripura is the sole winner in the category of states with
overall food grain production of less than one million tons. In the second set of four awards, being given for
individual crops and crop groups, the award for rice goes to Chhattisgarh, wheat to Haryana, pulses to Maharashtra and Rajasthan, and coarse cereals to Karnataka.Each award winning state gets a trophy, a citation and
cash award. The cash award (for each State) is Rs. 2 crore for total food grain production and Rs. 1 crore for
each of the four crops included in food grains
Haryana has been selected for the Best Performing State Award for wheat for 2010-11.
Chief Minister Bhupinder Singh Hooda said. The award would be presented by Prime
Minister Manmohan Singh on ICAR Foundation Day in New Delhi. He disclosed that the
award money, Rs.1 crore in cash, would be used for strengthening the infrastructure in
the State. This is the first time Haryana has bagged such an award, he added. Mr. Hooda
said the State was making dedicated efforts to extend technological inputs and services
to farmers which resulted in achieving highest-ever productivity and production of wheat
during 2010-11. Food security in India is synonymous with wheat production. Hence
consistent efforts are being made to increase wheat production to meet our ever-increasing demand despite numerous challenges.
10
State
ROUNDUP
Rice quota under APL category would be enhanced for Arunachal Pradesh at the earliest,
Union Minister for Consumer Affairs, Food and Public Distribution K V Thomas has said.
The Consultative Committee for FCI for Arunachal Pradesh called on the Union Minister
and pleaded for enhancement of APL Rice quota from 44,750 quintals to 90,000 quintals
per month. The minister also assured the committee to release the fund for construction of
proposed 12 FCI godowns in Arunachal Pradesh.
Maharashthra has closely followed Gujarat with 10.5 per cent of agricultural growth during the last decade,
leaving behind many front-running agricultural States. Steps like investment in agricultural infrastructure to
improve irrigation system, employment of latest technologies and establishment of a dedicated power grid to
ensure regular power supply for agricultural sector are significant reasons behind high agricultural growth rate
that Gujarat has achieved, said Mr D.S. Rawat, Secretary-General, Assocham. Chhattisgarh has ranked third
with 6 per cent of agricultural growth, followed by Orissa (5.28 per cent) and Andhra Pradesh (5.2 per cent),
said the Assocham analysis. Innovative and efficient management of the States groundwater resources is a
major turning point in Gujarats agricultural miracle which has converted barren lands into fertile farms thereby
raising yields and resulting in fall of cultivation costs. A revolution in agriculture has converted around 15 lakh
hectare of additional lands in largely semi-arid Gujarat fit for farming, thereby establishing the State on the
top in systematic and scientific development of the farm sector.
Improved diffusion of technology and better utilisation of water
through various unconventional initiatives have helped expand
area under cultivation and enhanced the crop productivity. Reasonable monsoon season throughout the decade along with rising minimum support prices from the Centre and extension of
profitable cash crop BT cotton are the factors that led to superlative performance by Gujarat.Farmers in the State have adopted
more technology and value addition of agricultural produce to
supplement their income. Increased agricultural production has
not only increased the State farmers income but also discouraged them from migrating to urban areas for jobs.
August 2011
AGRICULTURE TODAY
11
Corner
NABARD has sanctioned a Rural Infrastructure Development Fund assistance amounting to Rs.
765 crore to Tamil Nadu during 2011-2011 for executing infrastructure projects in sectors such
as drinking water, irrigation, and rural connectivity. The assistance also includes an amount of
Rs. 226 crore, issued for creating warehousing infrastructure creating 1,281 godowns with
a total storage capacity of 4.34 lakh metric tonnes. Also, an amount of Rs. 157 crore has been
sanctioned for a project to provide drinking water supply to four unions in Madurai district. A
sum of Rs. 64 crore has been sanctioned for improving nine old anicuts at the Amaravathy river
in Karur district, rehabilitating the Virudhachalam anicut across Manimuktha river in Cuddalore,
a check dam across the river Cauvery in Tiruchi district, and modernising Melmangalam supply channel in Theni
district. An amount of Rs. 318 crore has been sanctioned for reconstruction of 68 distressed rural bridges in 18
districts, widening and strengthening of 442 rural roads in town panchayats, and 330 village roads.
Private sector lender Yes Bank plans to consolidate its operations and is targeting a
nearly 56 per cent jump in priority sector loans this fiscal. The bank is looking to disburse around Rs 14,000 crore to the priority sector in 2011-12. Of this, agriculture is
projected to contribute around Rs 6,200 crore. Last year, the lender disbursed close
to Rs 9,000 crore in priority sector loans of which farm lending contributed Rs 5,500
crore. As part of its consolidation move, Yes Bank is looking to roll out low-cost branches in rural areas and
focus on its commodity finance business, which was kicked off early this year. The bank has ventured into funding the developers of affordable housing projects and micro-housing-finance companies, a move that will boost
its overall priority sector lending targets. Saurabh Bhat, president and managing director, corporate finance and
development banking, of Yes Bank, said the agriculture lending business, which had seen zero NPAs, had been
profitable so far. However, it is raising the strength of its crack team in the agri-business to 50 from 34 over
the next six months. Yes Bank has consistently achieved more than the priority sector targets not only on a
overall basis, but also in sub-segments such as agriculture despite having limited number of branches in semiurban and rural India.
Andhra Pradesh Chief Minister N Kiran Kumar Reddy asked banks to extend crop loans in the
current Kharif season to 57.5 million licensed cultivators (tenant farmers) who were distributed loan eligibility cards by the state government. At a high-level meeting, the chief minister
reviewed the implementation of the Licensed Cultivators Ordinance and said banks should
extend loans up to `50,000 to each licensed cultivator, who could otherwise not avail of the
loan facility under the three per cent interest scheme. Form joint liability groups and extend
loans to such farmers by imposing a condition on prompt repayment, the chief minister told
bankers. The agriculture department and the Society for Elimination of Rural Poverty would co-ordinate with
banks and facilitate the disbursal of loans to licensed cultivators.
Interest rate ceiling on agriculture loan will continue to encourage cheap credit to farmers, according to
finance minister Pranab Mukherjee. In a meeting with chiefs of public sector banks (PSBs), Mukherjee
expressed concern over rising non-performing assets (NPAs), which are highest in the farm sector. PSBs
told to devise suitable strategies to reduce NPAs. A paper circulated in the meeting revealed that bad
debt in housing loan was rising. Loans of up to Rs 2 lakh have highest NPAs. Nationalised banks have
reported an outstanding of about Rs 8,900 crore in housing segment. The total outstanding in housing
loan was Rs 2.29 lakh crore as of March 2011. Mukherjee, however, expressed concern over the performance of interest subvention scheme for housing loan and interest subsidy for housing urban poor.
He said it was not up to the desired level and banks needed to give greater thrust to the housing sector and increase credit disbursement. FM said the government was confident of achieving the revenue
target as the tax collections have been encouraging till June. On borrowings from the market, he said it
would be done in a manner to ensure private borrowers wont be discouraged. The government is likely
to borrow Rs 4.17 lakh crore in the current financial year.
12
Corner
The Uttar Pradesh government has decided to make Life Insurance Corporation of India (LIC) an official partner in disbursing Rehabilitation and Resettlement (R&R) annuity package to landowners and farmers who have handed
over their land to the state for development projects. The government will
sign an MoU with LIC to disburse the package for 33 years. This is the first
time in the country that annuity disbursement has been outsourced to a financial institution in the country. LIC has been selected as the disburser of the
scheme through a competitive bidding process that took six months after the
land acquisition and R&R policy was announced in September 2010. While
the initial bidding process saw as many as five financial institutions evincing
interest, including Allahabad Bank, LIC, ICICI Prudential Life, Bajaj Allianz and SBI Life Insurance, the final round
saw LIC as the lone bidder. The reason why the other financial institutions backed out in the final stages of the
bidding process was our firm stand on having performance guarantees from all the players. This is what most
of the players had an objection to, while the LIC did not have any problem, said an official. Under the policy,
dispossessed landowners and farmers will be given an annuity of R23,000 per acre per year for 33 years, along
with an additional amount of R800 increased annuity per year.
The West Bengal finance minister, Mr Amit Mitra termed credit linkages to
agriculture and the allied sectors in the state as disappointing. I am a bit disappointed with the role of banks in West Bengal, Mr Mitra said at the opening
of a Yes Bank branch here. He said that the demand for credit in the agriculture and allied sector stood at Rs 28,789 crore at 1999-2000 constant prices.
But out of that, only Rs 11,555 crore was provided by the banks, he said,
adding that only 40 per cent of the credit requirement was met. Referring to
the micro and small enterprises, he said that 48 per cent of credit requirement
of this sector was not met. Mr Mitra said that since this sector served the medium and large industries, enhancement of credit linkage was important. Mr
Mitra also urged banks to extend lending to the health sector in the state.
Jairam seeks interest rate for SHGs to be at par with crop loan
Setting a target to bring about 40 million rural poor under the self-help groups (SHGs) in the next 10 years, Rural
Development Minister Jairam Ramesh proposed to bring the bank interest rates for SHGs at par with crop loans
(at 5 per cent) and establish a bank to refinance credit to SHGs for this purpose. Currently, there are three crore
poor women participating in SHGs. We plan to take this number up to
seven crore in the next 10 years, he announced on Monday during a
function of signing of about Rs 4,600 crore credit agreement with the
World Bank for National Rural Livelihoods Project. The minister underlined the uneven distribution of SHG networks across different states
and the need to popularise bank-linked SHGs in poor states. For this,
Ramesh announced that the ministry was working on a proposal to
set up a dedicated bank for SHGs. I think the interest rates at which
SHGs secure credit from banks should be at par with crop loan, which
is 5 per cent. I would request the Finance Minister to make provision
for this for SHGs under the National Rural Livelihood Mission, he
said. Highlighting the success of SHGs in Andhra Pradesh and Kerala,
he said the government will try to replicate their success stories in
other states. Ramesh singled out Bihar for coming forward to replicate
the Andhra model of women SHGs to counter poverty. A group of
women SHG members from Andhra Pradesh visited Bihar to explain
their success and provide a momentum to the SHG network in Bihar.
August 2011
AGRICULTURE TODAY
13
Global
UPDATE
British researchers claim to have developed new super tomatoes fortified with minerals which can improve your immune system and help prevent cancer.
The new varieties, which have hit shelves across the
UK, have been enriched with selenium, a powerful
anti-oxidant which the researchers believe could not
only boost the immune system but also help prevent
cancer. The mineral, found naturally in foods such
as Brazil nuts, shellfish and liver, is also important
for the thyroid gland, which determines how quickly
the body uses energy and also produces proteins.
Food scientists for Marks & Spencer, the company
which has developed the new variety, turned their
attention to the mineral because it is lacking in UK
diets. Low concentrations in farm soil means little of
the mineral finds its way into home-grown foods. There is evidence that a deficiency may lead to heart disease
and, while it does not tend to directly cause illnesses, it can make the body more likely to catch infections. Dr
Carina Norris said the tomatoes were a great way to get the nutrient into our diets.
Soya oil and soyabean prices remained steady even as foreign markets weakened. Soya refined, which opened at Rs. 615 for 10 kg in the morning, declined
in late afternoon as weak global cues depressed Malaysian palm oil futures. By
and large, soya refined saw bulk-trading at Rs. 612-613 for 10 kg. While resellers here sold soya refined at Rs. 612 for 10 kg, they sold it at Rs. 610-611 for
10 kg in Neemuch and Mandsaur. Declining foreign markets also pulled down
soya solvent, as it fetched Rs. 582 for 10 kg in the spot market and Rs. 585
for 10 kg in the delivery market. Unlike spot soya oil prices, soya refined futures
traded higher on improved buying. July contract for soya refined on the National
Board of Trade, closed Rs. 2.70 higher at Rs. 643.70. Similarly, soya oil futures
closed marginally higher on the National Commodity and Derivatives Exchange,
with its July and August contracts opening at Rs. 642.60 and Rs. 641.90.
US corn supplies may be smaller than expected this year, according to analysts including Morgan Stanleys Hussein Allidina who were surprised by a government forecast for the secondhighest planted acreage since 1944.
The US Department of Agriculture raised its estimate on June 30 to 92.282 million acres, after all 31 analysts
in a Bloomberg survey anticipated a decline because of flooding and unusually wet weather in the Midwest. The
USDA report sent corn futures in Chicago to the lowest level this year and prompted Goldman Sachs Group to
cut its price forecast.The USDA underestimated planting delays and the risk of yield loss before the harvest, Allidina said. The government plans to resurvey farmers
in North Dakota, South Dakota, Minnesota and Montana, where some areas got triple the normal rainfall in
May and June. Also, there are no signs that demand
is slowing for corn from the US, the worlds largest
grower and exporter, he said.
The acreage number, there is little doubt in my opinion,
will be revised lower, Allidina, Morgan Stanleys head
of commodity research in New York, said. Inventories
are tight. The likelihood that last weeks numbers are
correct and the likelihood that we have good weather
are very low. You still want to be long December 2011
corn. Corn futures for December delivery may rally to
$7.50 a bushel on the Chicago Board of Trade close at
$6.155, according to Allidina.
14
Global
UPDATE
PARIS World food prices rose as the cost of sugar, meat and dairy increased,
adding to inflationary pressure that has prompted central banks across the world
to raise interest rates. An index of 55 food commodities rose to 233.8 points
from 231.4 points in , the United Nations Food and Agriculture Organisation
said in a report. The gauge climbed to an all-time high of 237.7 in February.
Food will remain costly in the next few years and price swings will be around
for a long time, Jose Graziano da Silva, the FAOs director-general elect
London Oil declined in New York on speculation that a slump in Chinese imports and rising unemployment in
the US may indicate fuel demand will falter in the worlds biggest crude-consuming nations. Futures slipped
as much as 2% after government reports in China showed net oil imports shrank 10% in June to the lowest
in eight months, while inflation surged to a three-year high. Labor Department report showed that the unemployment rate unexpectedly rose to the highest this year. Rising risk aversion after disappointing US jobs data
the Chinese data and elevated prices which need to correct are pushing prices lower, said Carsten Fritsch, a
Frankfurt-based analyst at Commerz bank. Crude for August delivery on the New York Mercantile Exchange fell
as much as $1.88 to $94.32 a barrel, and was at $94.62 at 1:56 pm London time. The price has risen 26%
in the past year. Brent oil for August settlement declined $2.07, or 1.8%, to $116.26 a barrel on the London
based ICE Futures Europe exchange
August 2011
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15
Whats
NEW
The International Crops Research Institute for the Semi-Arid Tropics (Icrisat)
expects to launch in three-five years biosafety field trials on genetically engineered crops it is developing to improve their yield and quality. Hyderabadbased Icrisat, which promotes ecological farming in Asia and Africa, is using
genetic engineering technology to improve the resistance of crops to insect
pests and diseases caused by viruses and fungi, to boost their tolerance to
droughts and to enhance their nutritional quality. The organization is working on the improvement of groundnut,
pigeonpea, chickpea, sorghum and millet crops through conventional plant breeding as well. The transgenic varieties of these crops are in different stages of testing in laboratory and greenhouse conditions. The commercial
viability of these crops has been very well established by the large adoption rate (over 95%) of cotton, which
is Indias first biotech crop, said Kiran K. Sharma, principal scientist at Icrisat.
Land acquisition by the government, haphazard industrialisation and divisions among the farmers were
discussed at a meeting of farmer leaders in Bharuch . The meeting was aimed at preparing a strategy for
a successful state-wide protest by them against land acquisition in Gujarat and also to chalk out a plan
to unite the members of Gujarat Khedut Samaj on various issues concerning the farmers. A committee
of farmer leaders was formed which will work to unite the different factions of Gujarat Khedut Samaj. A
seven-member action committee has been formed to rejuvenate the farmers body which is inactive after its
division into two groups. We discussed various issues related to the farmers. Land acquisition and the effects of haphazard industrialisation were discussed at the meeting, said Jayesh Patel. The GKS got divided
as one group was against industrialisation and land acquisition by the government. The action committee
will work to formulate an action plan to start a farmers movement. For this, unity among the farmers is a
must, Patel added.
16
Whats
NEW
Best Foods has announced its plans to expand its market base and share in the South by launching rice-based
ready-to-eat products and retail outlets soon. Business Director of the company Aayushman Gupta said that the
company was evaluating the market to launch ready-to-eat products with nutritional content as its USP (unique
selling proposition). Based on the trend of increasing demand for one-kg and five-kg packed regular fine rice it
was planning to sell them through retail outlets. The company had only been labelling for major retail chains
so far but with the launch its brand of one-kg and five-kg packs of regular rice (two varieties) and basmati rice
(three varieties) it was planning to increase its market share. However, its focus for Andhra Pradesh would remain on B2B (business to business) orders, supplies to hotels, retail malls and biryani centres for the time being.
Besides, it was engaged in exporting rice to over 50 countries and 75 per cent of its turnover was achieved
from it. Mr. Gupta said rice consumption in the country was 85-90 million tonnes a year with 8-10 per cent of
it being basmati. But, the market for basmati was growing by about 25-30 per cent annually, he said.
The voluntary disclosure scheme for unauthorised extension of load launched by the Dakshin Haryana Bijli
Vitran Nigam has evoked an enthusiastic response,
with over 1,000 farmers getting their unauthorised
extension of load regularised .An official spokesman
said the scheme was most popular in the areas of
Hisar and Sirsa operation circles where 388 and 325
farmers took benefit of the scheme respectively.
The number of consumers taking the benefit of the
scheme was 122 in Narnaul, 100 in Faridabad, 56 in
Gurgaon and 33 in Bhiwani operation circle. The VDS
had been launched to give farmers an opportunity to
declare their un-authorised extension of load voluntarily without paying any penalty. The scheme will
be in force up to August 31.He said a simple procedure had been laid down for declaring the load under the
VDS. The farmers might declare the extended load of motors of their tubewell connections by submitting an
Application and Agreement (A&A) form along with advance consumption deposits (VDS). They were not to
submit any terms and conditions forms or affidavits. The consumers were not required to submit any fresh test
reports also. They could submit a self-declaration form. Their load shall be regularised without any penalty. All
SDOs (Operations) have been asked to hold open darbars in villages to ensure easy availability of the scheme
to farmers.
BSE-listed Rasoya Proteins, producers of soya-based products and edible oils, has commenced commercial production of 1,000 tonnes a day at the solvent extraction unit at Buldhana in Maharashtra. The
solvent unit was part of the new extraction and refinery unit being set up by the company in Buldhana.
The companys investment in the refinery had received the Mega Project status from the Maharashtra
Government.
The Nagpur-based company intends to utilise the Rs. 146 crore raised recently through issue of Global
Depository Receipts for funding the Buldhana project. It had allotted 10,44,571 GDR to the Bank of New
York, depository to the GDR holders. The GDR allocation was equivalent to 2,08,91,420 equity shares. At
present, the company has a modern crushing factory spread on 70 acres at Wani in Yavatmal, Maharashtra. Last fiscal, Rasoya Proteins had crushed 1.62 lakh tonnes of soyabean and registered a turnover of
Rs. 424 crore against Rs. 370 crore, a rise of 15 per cent. The company expects its turnover to double by
next fiscal with the production at Buldhana achieving its optimal capacity.Sale of surplus power produced
at the 10-MW captive plant also helped the company boost its revenue. It had signed a power purchase
agreement with Maharashtra State Electricity Distribution Company for sale of 7.5 MW a hour. Rasoya
Proteins has managed to achieve economy of scale in power production by entering into long term supply
contract with coal producers in Wani which is known for its coal reserves.
August 2011
AGRICULTURE TODAY
17
Farm Mechanization
The productivity of farms depends greatly on the availability and judicious use
of farm power by the farmers. Agricultural implements and machines enable
the farmers to employ the power judiciously for production purposes. Agricultural machines increase productivity of land and labour by meeting timeliness
of farm operations and increase work out-put per unit time. Besides its paramount contribution to the multiple cropping and diversification of agriculture,
mechanization also enables efficient utilization of inputs such as seeds, fertilizers and irrigation water. The production of irrigation pumps and diesel engines
started during 1930s. The manufacture of tractors and power tillers started
in 1960. Since then by the virtue of its inherent edge over the conventional
means of farming, agricultural mechanization has been gaining popularity.
18
Company Market
Share in Tractors
Products
Tractor sales
Market Share
as a % of total in Tractors
Utility vehicle,
25
LCV, Three wheelers, Tractors
44 %
TAFE Ltd
80
23 %
International
Tractors ltd
Tractors
100
11 %
Escorts
Tractors
NA
14 %
New Holland
Tractors
100
5%
John Deere
Tractors
100
4%
Others
NA
7%
August 2011
AGRICULTURE TODAY
19
20
3.
4.
5.
6.
7.
8.
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21
22
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23
24
Eastern
Western
Northern
Southern
Central
Total
Manually operated
Animal drawn
Power operated stationery
Power operated walk behind
Tractor mounted/riding type
Total
24
21
6
4
6
61
15
27
3
-
3
48
17
31
11
4
36
99
18
30
20
13
13
94
19
46
10
6
18
99
93
155
50
27
76
401
ability of labour.
(c) more employment to rural people which will arrest the rural
migration and reduce social
problems in cities (mitigation of
congestion in cities).
(d) overall development of rural areas with the creation of other
infrastructure to serve these
units in terms of education,
health, communication etc.
(e) utilization of by-products after
value addition as animal feed,
compost, biogas feed etc. They
will help in reducing in the cities
also.
Livestock improvement and their
management
The livestock not only have
economic importance but symbiotic relationship with the Indian rural folks. Due to existence of large
number of poor quality livestock in
the country, serious attention has
to be given for their improvement
through better management, health,
feed and breeding. The industries
will have to contribute not only for
processing of the animal products
but also for providing services like
cattle feed and fodder, poultry and
animal shelter, milk handling and
processing plants.
Aquaculture development
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26
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28
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30
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Todays competitive agricultural market requires better management of resources and minimization of operating costs to maximize profits.
32
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33
The market
There are two main models
for combine harvesters based on
their working principles: self-propelled and tractor mounted. Tractor
mounted combine harvesters are
cheaper as compared to self-propelled combines and are often preferred by farmers who have smaller
holdings of lands.
The demand of tractor mounted
combines is estimated at around
3,500 and for self-propelled combines is around 1,500. The heartening factor for this segment is that
only 10-15% farms use these machines for harvesting. The growth
rate for the demand of combines is
expected to be around 12% annu-
34
August 2011
AGRICULTURE TODAY
35
In Conversation
Leading
The Leaders
In a world where more
than a thousand million
people are underfed,
global food security is
a serious question to
be addressed. France
who chaired the recent
G 20 summit has proposed an action plan
to address this issue.
In an exclusive interview with Agriculture
Today, Mr Jerome
Bonnafont,
French
Ambassador to India
speaks in details on
this burning topic
36
In Conversation
proposition of France. But basically
it is a result of 20 countries with
international organizations to put
up the necessary series of work for
the next few years to address this
question. So basically we are very
encouraged by the outcome of the
meeting of these ministers which is
a landmark for tackling the question
of food security and price volatility.
In his recent address, he spoke
about volatility in the global market
of the agro produced. He has termed
an unregulated market as one of the
speculations . However in this context the G 5 and G 8 superpower
countries want to have their own
say and dictate terms. Has France
which itself is a superpower has
given a thought to this?
We believe that for this type of
question, countries have to work
together and that no one country
can dictate its terms of its law to
everybody. This means that first,
action will be collective. We have
started to discuss this question of
the link between the financial market and the food price volatility at
this G 20 meet. But its not only a
question for agriculture ministers,
its a question for finance ministers, its a question for financial distributions, its a question for WTO
so all the organizations and all the
countries have to make their own
homework to realize the nature of
the problem and give appropriate
answers. What we have in mind is
that in many circumstances, when
you have the very high level of
price volatility and when you have
a lot of exchanges of commodities
in financial forms then you have a
impact on the life of the farmers
and on the life of the consumers in
particular to the poor countries but
also in other countries. And these
two have to be connected. Because
they often in the financial sector are
not aware of the practical impact of
what is going on in the actual life of
people. So, we strongly believe that
it is necessary to raise the awareness of the financial sector on the
practical impact of some situations.
We dont say you have to prohibit
financial activities in the agricultural sector. It is necessary for the
food security?
This is a very delicate matter. On
one hand it is necessary for rich
countries to be able to ensure food
security of its own people and it is
very important that a country can
feel comfortable about the fact that
it is able to tell its population that
there is enough food for you. On
the other hand there is a fact which
is a fact that a very small change
in the amount which is put on the
market is having a very high affect
on prices. We often quote the fact
that two years ago when Russia
had very bad crop and decided to
limit its exports, prices sky rocketed immediately. So, embargo is
not, prohibition of exports is not the
answer, is not what we said in the
G 20. What we said is that there
has to be a sharing of information
so that there can be anticipation, so
that the market can be prepared and
that stocks can be used in a way to
tame the impact of the shortage.
But it should also be made sure that
purchases by bodies which are in
charge of humanitarian aide can not
be prevented because it is extremely important that international bodies in charge of humanitarian aide
can have a success in food in whatever quantity they get. So these are
the main issues we said.
Bio fuels have been another contentious issue with poverty relief
groups disappointed at the draft G
20 agreement. Scientists and economists have written that use food
crops to produce fuel is helping
push up prices and causing hunger.
Has the action plan taken this into
account?
It is taking this aspect into account
in that respect the first thing to
know better is what is the actual
situation? We cannot act in ignorance. We cannot act only on the
basis of some science and some
morals of the situation. Bio crops
and bio fuels can be very good and
very necessary because it has an
impact on renewable energy production which is good for the climate.
On the other hand if it diverts too
much land from food production to
bio fuel production then you might
have a problem. In this context
August 2011
AGRICULTURE TODAY
37
In Conversation
what is necessary is to know what
you do and take the right path. So,
saying no to bio fuel will be a blind
answer. To say 100 % yes to bio
fuel will also be much exaggerated.
We have to know how to adjust the
needs of the planet in terms of food
crops and bio fuel crops.
Another area of concern has been
the paucity of information on agriculture production and stocks which
indeed ignite speculation. India and
China are not in favour of sharing
information with other countries.
Do you this could be overcome?
We have in the action plan a chapter which is devoted to transparency and to sharing of information. It is a delicate matter because
some countries believe or consider
that they need to ensure their food
sovereignty on their resources and
on their anticipated crops. If you
want your market to be organized
in some manner, transparency of
information is the key element. It
seems to us that setting up a mechanism which is not a property of
one but which is a collective body
with collective responsibility, can
eliminate the fears of those who
are not in favour of giving information because they fear mishandling
of those information. Such a body
also can provide appropriate anticipation so that global food security
is ensured.
Food security does not only mean
mere optimum quantity but quality too. It is not merely a problem
of farm production but related to
poverty reduction. To guarantee
food security a broad policy is the
need of the hour ranging from agriculture, research, education and
health to sustainable energy. Has
France evolved any formula to address these vital aspects?
France is thinking a lot about it and
as a matter of fact being a big agricultural country ourselves we have
always devoted many resources to
international solidarity in the field
of agriculture and one of the main
fields of our developmental aide has
been agricultural support to Africa.
We are fully aware of the quantity
and the quality and need for own
38
August 2011
AGRICULTURE TODAY
39
interview
40
interview
Central Government from time to time.
What are the new Schemes for improvement of quality
of smallholder rubber?
Several schemes with the major objective of quality improvement of smallholder rubber are in operation.
The main schemes are listed below:
a) Schemes for setting up of latex collection centers.
b) Scheme for setting up of eco-friendly group processing centers.
c) Processing quality up gradation and product development scheme.
d) Scheme for transportation subsidy
e) Scheme for setting up of training facilities
In addition to the various financial schemes Board has
been conducting exclusive field training programmes
and mass contact programmes for quality upgradation.
Necessary technical support is also given as and when
needed.
What are the various development activities carried out
by the Board to promote expansion and modernisation
of the rubber plantation industry?
The Rubber Board has been implementing a variety of
development/ extension schemes aimed at the overall
development and modernization of the plantation and
smallholder sector. All these schemes have components
(including financial/technical) which focus on increase
in production and productivity, technology dissemination, improvement in the level of adoption of modern
technology and infrastructure development. The Rubber Plantation Development Scheme which played a
key role in rubber development in India is still under
implementation with timely changes, under the XI plan.
A special scheme for development of rubber planting is
being implemented in nontraditional area with special
emphasis to Northeastern region.
How the Rubber Board is organizing an intensive mass
contact programmes to create awareness among the
rubber growers?
Rubber Board has been organizing special campaigns
every year to convey subjects of topical importance
to the growers. These mass contact programmes are
unique in its mode of conduct and reach. The campaigns are organized for a period of one month, with
the active support and participation of grower organizations (Rubber producers Societies (RPSs)/ self help
groups) and voluntary organizations. 3000-4000 small
group meetings are convened in the rubber tracts in
which a total participation of minimum one lakh growers/labourers is ensured. In addition to the theme other
relevant issues are also discussed in each group meetings. The theme for 2010 campaign was quality improvement and that of the ongoing 2011mass contact
programmes is scientific tapping for enhanced productivity. A post campaign evaluation of the programme
also is done immediately after the campaign to analyse
the feedback from the field.
The productivity of the holdings mainly depends on tapping methods. What are the scientific tapping methods
adopted?
Tapping is a process of controlled wounding of rubber
trees. It becomes scientific when sustainable /maximum
yield is obtained from the trees throughout the economic age, without damaging the trees. Conventional tapping, controlled upward tapping, low frequency tapping
etc. are all scientific harvesting methods.
What type of Technical Consultancy Service you are
providing to growers in Kerala?
Rubber Board is imparting the technical know-how for
plantation development, harvesting and crop processing. Free technical advice is our integral part of all the
schemes operated by the Board. Board is disseminating
its messages through all the available extension tools
starting from interpersonal contact to IT enabled services.
What is Rubber Plantation Development Scheme?
It is an integrated scheme having financial as well as
technical components aimed at expansion of rubber
area in the country by promoting replanting /new planting. Board is implementing this scheme in a phased
manner as part of Five-Year Plans. The Rubber Plantation Development Scheme which played a key role
in rubber development in India started in 1980 is still
under implementation with timely changes, under the
XI plan.
How Intercropping helps plantation?
Intercrops generally may not, per se, help the plantations. But it provides ancillary income to the growers,
especially in the immature phase.
What is your marketing strategy and to which part of
the globe you are marketing your products?
The Indian NR sector had evolved with an orientation
for domestic market as rubber was promoted as a crop
for import substitution. But with the lifting of QRs on
import, which posed a serious threat to the domestic
NR producing sector, export had to be promoted to offset the adverse effects of tactical import. However export of NR has always been treated as a mechanism to
adjust the domestic NR supply-demand imbalances.
What are the Boards new schemes for the 12th Five
Year Plan?
The schemes under 12th Five Year Plan are yet to be
finalised. Starting from April, we have had a series of
consultations with all the stakeholders of the rubber
sector to get their suggestions. A National Committee,
comprising experts from different fields, headed by the
world-renowned agricultural scientist Dr. M.S. Swaminathan, is evaluating the outcome of 11th Plan schemes
to generate inputs for the formulation of schemes for
the 12th Plan.
August 2011
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41
Thought
42
nology Mission on pulses (TMO) resulted in increase in the pulses production from 12.86 million tonnes
in 1989-90 to 14.91 million tonnes
in 1998-99. Similarly, the area
under pulses also increased from
23.41 million ha in 1989-90 to 23.5
million ha in 1998-99. The major
pulse producing states experience
drought conditions during 19992000 to 2002-03, which effect the
pulses production of the country
Thought
Table 1:Government targets and achievement of pulses in million tonnes
Year
Target
Achievement
Gap
1996-97
17.0
14.2
2.80
1997-98
15.0
12.9
2.03
1998-99
15.5
14.9
0.59
1999-00
15.5
13.4
2.09
2000-01
15.0
11.1
3.93
2001-02
15.0
13.4
1.63
2002-03
16.0
11.1
4.87
2003-04
15.0
14.9
0.09
2004-05
15.3
13.1
2.17
2005-06
15.1
13.4
1.76
2006-07
15.1
14.2
0.95
2007-08
15.5
14.8
0.74
2008-09
15.5
14.6
0.93
2009-10*
16.6
14.7
1.94
is launching several programs/projects to enhance the output of pulses in the country. Some of them
are National Food Security Mission,
Accelerated Pulse Production Program, Agriculture Technology Management Agency, Rashtriya Krishi
Vikas Yojana and 60,000 pulses
and oilseeds villages. Under National Food Security Mission-pulses
program, Government of India has
provided enough support for breeder and quality seed production as
well as training to extension workers and farmers. The price policy
for agricultural commodities seeks
to ensure remunerative to growers for their produce with a view to
encourage higher investment and
production and safeguarding the interest of the consumers by making
sure that the adequate suppliers are
available. With these aims the government announces minimum support prices of pulses every year. It
is noticed that the minimum support
prices of all major pulses has been
increased more than doubled during
two decades. These all programs/
schemes have made an impact on
cultivation of pulse crops and farmers might have used farm inputs
like irrigation, fertilizers, plant protection measures etc. which has led
in ever high production of pulses in
India. The record production will reduce our dependence on imports to
meet the shortfall in the domestic
demand.
The output of the pulse has
been increasing over the last six
years indicates that the effective
government
programs/schemes,
with appropriate technological support, availability of quality seeds of
high yielding varieties and increase
in minimum support prices can
make the country self sufficient in
pulse production. The steps are in
right direction but these need to
be further strengthened to achieve
self-sufficiency in pulses.
Sonia Chauhan,
Mangal Singh Chauhan
National Centre for Agricultural
Economics and Policy Research
(NCAP), Pusa, New Delhi
August 2011
AGRICULTURE TODAY
43
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re
mic vital
S
o
versity re
n
to
o
s
ec
lk
d
ta
an
ability
of this project
wine sustain
key member
a
d
an
re
u
lt
of horticu
orticulture.
aspects of H
ticulture industries in the eastern US, wine is quite mi-
When did you take charge at Department of Horticulture, University of Penn State?
I took charge on July 1, 2004.
Define Horticulture as an industry?
Horticulture crops include crops grown on relatively
small acreage, require intensive management, and have
high value. The crops include vegetables, tree fruit and
small fruit, grapes, nut crops, greenhouse crops, floriculture, nursery crops, and Christmas trees. I also consider landscape design, landscape construction, landscape instillation, and landscape maintenance to be a
component of the horticulture industries.
Horticulture is a vital and growing component of the
states economy. What is the contribution of agriculture at national level?
Agriculture is the largest industry in the USA and employees more people than any other industry.
How many percentage of population depends upon
agro jobs?
I am not sure about the national numbers, but in Pennsylvania and Virginia, about 15% of the jobs are related
to agriculture.
Horticulture is made up of diverse sectors of production, sales and service firms. Which are the industries
that include the agricultural businesses?
In addition to those listed in the second question: farmers, nurserymen, wholesalers, farm markets and other
retailers, packers/shippers, processors, public gardens,
and garden centers.
You are part of multi university research project to evaluate the wine quality of grapes. What is your finding?
Dr. Crassweller is involved in this project to evaluate
grape varieties at two locations in Pennsylvania. The
plantings were established just two years ago and he
expects his first crop in 2011, so there are no results
to report at this time.
What is the total contribution from wine industry and
its economic vitality in the eastern United States?
There are no good estimates. Compared to other hor-
44
nor, but it is growing. The Pennsylvania Wine Association commissioned a study several years ago to assess
the economic impact of the wine industry. The value
of the wine is only about $5 million per year, but they
said the impact to the local economy was nearly $125
million because it increased tourism.
How effectively we used Information Technology with
Horticulture to bring good result and which are the areas we blend both?
We are still learning and I dont think there is good information on this.
What are the reason you find for where the backyard
fruit tree is often a vanishing memory?
I am not sure I agree with this statement. There is still
quite a bit of interest in growing fruit trees in the home
garden.
In state-of-the-art production methods how we can reduce pesticide use and bring homeowners and hobbyists back to organic farm method?
Breeding disease resistant varieties will help reduce pesticides for disease control we have some pretty good
apple varieties with good disease resistance, but not
for stone fruit. Insects are still a problem, but we can
control many of them with organic pesticides. Weed
control and fruit thinning remain the primary problems
for organic apple production. In warmer, more humid
climates, summer rots are the biggest problems and
there are no resistant varieties. Some organic methods
are not sustainable, so I dont think we want to go organic, but we want to develop and publicize methods
that do not harm the environment.
August 2011
AGRICULTURE TODAY
45
Research
46
Wheat
Rabi
311
33.67
4,350
33,670
29,230
Rabi
68
500.00
28,000
25,0000
2,22,000
Khariff
35
479.1
24,200
21,53,565
16,9680
Cabbage
Rabi
23
385.5
21,400
1,79,250
1,57,850
Okra
Zaid
178
92.09
14,500
1,84,180
1,69,680
Bottle Gourd
Zaid
96
227.2
13,200
1,84,507
1,71,307
Brinjal
Zaid
12
360.5
26,400
2,08325
1,81,925
Vegetables
Tomato
August 2011
AGRICULTURE TODAY
47
Research
terprises. Prior to project, income
from vegetable cultivation was nil
as no marginal farmers are getting
average income of Rs. 24,464 /from vegetable cultivation whereas
from field crops it is Rs. 20964 /-.
Income of small farmers from also
increased from vegetable cultivation.
Nutritional improvement
Women and children in the operational area were malnourished
due to poor nutrition. Baseline study
showed that they hardly purchased
any vegetables from market. During
the period, 10900 families were provided vegetables seeds for nutriagarden for improving their nutrition.
Each farm household was provided
with a kit of vegetable seeds of cucumber, okra, ridge gourd, bottle
gourd, cluster bean, tomato, chili,
spinach, pea, papaya plants etc.
These families consumed the vegetables which helped to improve
4th Edition of
Agriculture
Year Book
2011
is going to be released
shortly.
Email: abhishek@agriculturetoday.in
48
Notion
Agriculture as the major livelihood resource of our people and the mainstay of our economy has become an
unrewarding and un-remunerative proposition. The Planning Commission is bent upon imposing the policies
and technology that have no relevance to the ground reality of Indian agriculture. The Planning Commission
and the Bureaucrats are misguiding the Govt. on so called advantages of policies. The right policies can put
our country on the high pedestal of agricultural development.
Agricultural policies and research in India seems to have become totally incompatible to the needs of
our agro-system or perhaps it has lost its goal and gone out of track. Well laid infrastructure, countrywide
network of research centers and the enormous fund spent over agricultural research failed to achieve the
desired goal. Major part of the funds earmarked for agricultural research is spent on establishment and very
little on actual research.
They do no fit into our agro-system and have overlooked the needs of Indian agriculture, did not care to
identify the real malady and suggest constructive and realistic remedial measures. The policies will make our
agro-system captive at the mercy of the corporates for all time. The corporate agriculture model is not fit for
our country. Their advocacy for launching a Second Green Revolution is deceitful as it is nothing but a conspiratorial ploy of making way for genetic engineering and G.M.Os whereas elsewhere in the world including even developed countries, these technologies are facing stiff public resistance on Bio-ethical grounds.
The agriculture policies should put on the right track .The country needs the Farmer Centric Agriculture
Model and it should be based on NATURAL RESOURCE MANAGEMENT for the sustainable agriculture. The
present policies and planning and research is fast moving towards a blind alley. The research, policy and
planning has become a burden on the public exchequer. It has no perceived idea, understanding and appreciation of research priorities for a predominantly agricultural country like India. The functioning of the policy
makers is the inherent weakness of its leadership and inefficient management.
The policy planners miserably failed to cater to the needs of Indian agriculture. Its a matter of competence & commitment and having innovative ideas as per the need of the farmers and must be fully committed towards perspective growth and development of agriculture in the country.
Dr. Krishan Bir Chaudhary, President, Bharatiya Krishak Samaj
August 2011
AGRICULTURE TODAY
49
Face to Face
IFAD, A KEY
PLAYER TO
ACHIEVE MDGs
International Fund for Agricultural Development (IFAD),
established in 1977 is a specialized agency of UN that
solely works for agricultural and rural development. Dr.
Vincent Darlong is the Country Programme Officer, India
of IFAD. In an interview to Agriculture Today, Dr Darlong puts a light into the role and vision of IFAD
When did the International Fund for Agricultural Development (IFAD), was established as an international financial institution?
The International Fund for Agricultural Development
(IFAD), a specialized agency of the United Nations, was
established as an international financial institution in
1977 as one of the major outcomes of the 1974 World
Food Conference. The conference resolved that an International Fund for Agricultural Development should
be established immediately to finance agricultural development projects primarily for food production in the
developing countries.
What is IFADs role and focus in eradicating rural poverty?
IFAD is a specialized agency of the United Nations and
an international financial institution dedicated to eradicating rural poverty in developing countries. IFADs goal
is to empower poor rural women and men in developing
countries to achieve higher incomes and improved food
security. IFAD is the only international organization to
focus exclusively on rural poverty to make progress
on first Millennium Development Goal [MDG1]. It also
places emphasis on empowering women, contributing
to third Millennium Development Goal [MDG3]. IFAD
works directly with smallholder farmers and local communities to ensure that poor rural people have better
access to, and the skills and organization they need to
take advantage of:
l Natural resources, especially secure access to land
and water, and improved natural resource management and conservation practices;
l Improved agricultural technologies and effective
production services;
l Financial services;
l Transparent and competitive markets for agricultural inputs and produce;
50
Face to Face
graphic and conflict areas as in the red corridors in
Jharkhand, Chhattisgarh and Orissa through its Tribal
development Programmes and in the conflict areas of
North East India. Gender equality and gender mainstreaming through gender action plans. Addressing climate change for small holder farmers through a well
defined climate strategy and also a strategy for environment and natural resource management. Focus on
poor countries, poor states, poor districts or poor regions with well defined targeting policies and practices;
Result-oriented bottom up planning and implementation
through grassroots community institutions. Cost and
value consciousness. Financial resource management
with due and diligence processes. A general culture of
transparency and accountability. Well designed antifraud and anti-corruption strategy. Valuing partnerships
with other organizations including NGOs. Valuing for
up scaling, innovations and knowledge management.
One of the most important insights emerging was that
the causes of food insecurity and famine were not so
much failures in food production, but structural problems relating to poverty and to the fact that the majority of the developing worlds poor populations were
concentrated in rural areas. What are the steps taken to
secure food security in future?
The food and nutritional security manifest in the project
in the form of poor health in women and children and
debilitating health of adult men. Food insecurity is due
to low food production, insufficient income to buy food
and low accessibility to or nonfunctional social safety
net programs in project areas as the Public Distribution
System (PDS). IFAD projects in India have taken the following steps to address food insecurity. Food and nutritional security is address at the project design stage
and incorporated in the design directly or indirectly in
program components to address food security. The design emphasis is on innovations that can be adopted
by small farmers to progressive pattern of adoption or
adaptation. Some of these components are notably, addressing irrigation facilities, introduction of seeds, and
improve market opportunities to support farmers in innovative ways in the process of modernization. Promoting food for work and cash for work to address
food security. IFAD project supports the rural poor by
through food for work program with support from the
World Food Program (WFP) in Orissa, Jharkhand and
Chhattisgarh . Whereas in other cases it organizes the
poor to improve their wage earning by participating
in public works program such as MGNREGA. Farmers
Field Schools have been introduced as a demonstration
This has led to small farmers in Jharkhand, Chhattisgarh, Orissa and Uttarakhand to adopt new and improved methods of rice and vegetable cultivation, less
water demanding variety of wheat, reintroducing minor cereals and pulses, potato cultivation and thereby
increasing productivity gains and increased production
leading to food security. Introduction of Home gardens
in shifting cultivation areas of North Eastern India has
addressed food security by brining to the home gardens
August 2011
AGRICULTURE TODAY
51
Face to Face
mass to attract private market players to increase income at farm gate. In Uttarakhand, Jharkhand, Tejaswini Maharastra and Meghalaya and NERCOMP back
yard poultry, piggery and dairy are being promoted to
increase food securing and cash income to purchase
food and create farm assets. Value Chains promotion
and micro enterprise development by IFAD through a
sub sector business development approach is another
strategy to address food security. The first initiative
was a milk chain developed in Mewat Area Development Project which was promoted Milk Producer Cooperative. Value chain development in the IFAD project in
Uttarakhand, Meghalaya, and new initiatives in Tamil
Nadu and CAIM are aimed at increasing production and
productivity and better income for the poor directly
and indirectly addressing food security. Building strong
peoples institutions for production and commercial
transactions and supporting the convergence with PRI
to go on scale and improve future food security. This
project level strategy supports the poor at the village,
block and district level to be part of the local governance process through their representatives in the PRI.
This intervention is at a nascent stage in ULIPH and
MLIPH as Block Level Resource Centers (BLRC) interphasing with PRI as the Block Level, while in Tamil
Nadu community infrastructure are constructed based
on community plans under the ages of PRI. IFAD projects are addressing food security by exploring improved
adaptive research and extension approaches. In rain fed
areas IFAD projects are identifying along with farmers
location specific solutions to address food security by
enhancing production and productivity. Promotion of
adoption of improved agriculture technology by addressing access constraints of public extension services by creating cluster associations as a platform for extension and training by converging with Line Agencies.
Also training cadres of Community Resource Persons to
extend farm information and technology to remote rural
villages. Furthermore, collaboration is done with state
institutions such as the Organic Board in Uttarakhand.
IFAD promotes cash income generation from wages
and non-farm activities also help the very poor to purchase food during the lean season. Increasing income
through the promotion of micro enterprises and IGAsat
both farm and non-farm sectors and also linking the
poor to 100 days of wage-earning programme of the
Government of India MGNREGA.
IFAD focuses on country-specific solutions. What are
the things involve?
IFADs mission is to enable poor rural people to overcome poverty. Seventy-five per cent of the worlds
poorest people - 1.4 billion women, children and men live in rural areas and depend on agriculture and related
activities for their livelihoods. Working with rural poor
people, governments, donors, non-governmental organizations and many other partners, IFAD focuses on
country-specific solutions, which can involve increasing rural poor peoples access to financial services,
markets, technology, land and other natural resources.
52
Face to Face
cum sustainability strategies. The rural development
programmes are harmonized with national policies and
programme of India as well as built on the COSOP and
IFADs Strategic Framework.
IFADs in India started with an aim to improve poor rural peoples access to economic and social resources.
What is the strategy planned?
IFADs strategy (2007-2010) in India centered on improving rural poor peoples access to economic and social resources. In all operations, IFAD emphasized the
importance of strengthening peoples capacities to establish and manage their own institutions.
It supports Self-Help Groups (IFAD is a pioneer for the
SHG bank linkages movement India), community institutions and village development associations in tribal
and non-tribal areas. These and similar groups participate directly in designing development initiatives
and become progressively responsible for programme
and project resources and management. Empowering
women and other disadvantaged groups is a strategic
priority. IFAD has played an important role in developing replicable models through its projects and acted as
a catalyst for far-reaching innovative change. In areas
such as microfinance and womens empowerment,
IFAD-funded operations have tested institutional and
technical innovations that have been ultimately scaled
up by the Government at the State and national level.
The new country strategy (2010-2015) will continue
IFADs focus on the poorest, most marginalized and
remote of the rural poor in rainfed areas. Special emphasis will go to the following groups: (i) tribal communities, (ii) smallholder farmers; (iii) the landless ;(iv)
women; and (v) unemployed youth. The COSOP will
support inclusive growth and where possible converge
with government efforts to increase wellbeing and nutritional security.
Accessibility to food is the real challenge in India, aggravated by food inflation. The COSOP will address this
challenge through promoting sustainable and climate
variability-resilient agriculture in rain fed smallholdings
and by helping communities organize and empower
themselves and gain access to service providers, local
government and entitlements from major centrally supported schemes.
In which way microfinance and womens empowerment programs of IFAD helped to raise her bargaining
position in the households?
Women are relatively more dependent on the informal
credit system at higher cost to meet their needs. The
formal credit system in rural remote areas is almost inaccessible for poor rural women. The major factors that
hinder womens access to credit in the IFAD project areas from formal credit institution include their low level
of literacy and numeracy, their general lack of exposure
and contact with the world outside their immediate
environs, unfamiliarity with bureaucratic procedures
and the unsympathetic attitudes of bank functionaries. Womens access to credit is also limited by high
AGRICULTURE TODAY
53
Face to Face
gramme (MRCP) and Rural Womens Development and
Empowerment Project Swa Shakti have specifically
focused on womens development. The aim of these
projects was to enhance womens agency to promote
gender equality and poverty reduction through improvement of womens access to productive natural resources and financial services. As a result of these programs
the women have become more self-confident, mobile
and comfortable in dealing with bureaucracy. This also
had an impact in their domestic domain. There are examples in project areas, where incidence of violent behaviour against women, wives have reduced, and more
girls are attending schools. As a result of these activities they have become self-confident, to be able to mobilize resources and address her familys needs and to
earn money has given her a sense of accomplishment
and a feeling of empowerment.
Which are the IFAD-supported programmes that have
been in remote areas and have targeted some of the
poorest and most deprived segments of the rural population?
IFADs targeting policy defines its target group as
rural people living in poverty and experiencing food
insecurity in developing countries. Within this broad
group, IFAD proactively strives to reach extremely poor
people (as defined by MDG 1) who have the potential to take advantage of improved access to assets
and opportunities for agricultural production and rural
income-generating activities. The policy also states
that IFADs target groups should be defined in each
country according to a stakeholder process adhering
to the framework and guidelines identified, reinforcing
IFADs comparative advantage. Because of the varying
conditions of the poor, the people IFAD would work
which cannot be defined a priori in geographical or
occupational terms, or even in terms of specific income
thresholds. The MDG threshold for extreme poverty of
USD 1 a day, for example, may be a relevant indicator in much of Africa and parts of Asia. In addition,
in developing countries, large segments of the rural
population are highly vulnerable to risks and external
shocks, ranging from the illness of a household member or death of a wage-earner to natural disasters. In
this regard, IFAD will work to support not only people
who are chronically poor, but also those at risk of becoming poor because of vulnerability to such risks and
external shocks. In India, the IFAD supports projects in
the most remote and rural areas targeting the poorest,
most vulnerable and marginalised groups including rural
men and women, fish communities, tribal communities
especially the particularly vulnerable tribal groups. At
present there are eleven ongoing projects in the States
of Assam, Meghalaya, Manipur,Orissa, Jharkhand,
Madhya Pradesh, Maharashtra, Uttar Pradesh, Bihar,
Rajasthan, Uttarakhand and Tamil Nadu.
The population of the developing world is still more ru-
54
August 2011
AGRICULTURE TODAY
55
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56
Situation
Present scenario
and future need of
edible oil in India
Field crops
Oil content
(%)
S.
No.
Field crops
Oil content
(%)
Groundnut
46 50
Wild apricot
50 57
Castor
45 57
Cherry
17 20
Sesame
50
Coconut
62 65
Mustard
35 48
Almond
60
Toria
33 46
Walnut
62 70
Rai
30 42
Olive
15 45
Safflower
32
Wild peach
48
Niger
35 45
Plum
41
Sunflower
40 45
Seabuckthorn
25
10
Linseed
35 40
10
Cheura
40 60
August 2011
AGRICULTURE TODAY
57
Situation
prefer Groundnut oil, while those
in the East and North use Mustard
and Rapeseed oil. Likewise, several
pockets in the south have a preference for Coconut and Sesame oil.
Availability and demand of edible oil
India was exporter of oilseeds
and vegetables oils till World War
II and reasonably self-sufficient till
1960s, but with the passage of
time and rapidly increasing high
population growth rate, the growers are diverting towards cereal
crops. Hence, the low availability
of edible oil through field crops is
not in position to fulfill the present
requirement of people and industry.
Though there is large area under oilseed crops including field and fruit,
but still the increase in area under
oilseed cultivation is a challenge
due to lack of arable land and competition from food grains and other
cash crops. During the last couples
of years, Indias domestic production of oilseeds has not grown in
line with edible oil demand, the
main reason behind this is competition with food grains for acerage,
increasing population, improvement
in the life standard of consumers as
they are shifting towards branded
packaged oil. The gap between the
production and demand of edible oil
in India has increased sharply in recent years. Since 2000-01, production of oilseeds grew at the rate of
4.7 per cent per annum, but edible
oil consumption increased at the
rate of 6.5 per cent per annum. Due
to above noted reasons and failure of
58
Production of
oilseeds
Net availability of
edible oils from all
domestic sources
2000 01
184.40
54.99
96.76
2001 02
206.63
61.46
104.68
2002 03
150.58
47.28
90.93
2003 04
251.86
71.40
124.30
2004 05
243.54
72.47
117.89
2005 06
279.79
83.16
126.04
2006 07
242.89
73.70
115.87
2007 08
297.55
86.54
142.62
2008 09
277.20
84.62
166.41
2009 10
263.20
79.31
167.52
Know Your
MINISTER
EXPECTATIONS GALORE
It is an incredibly wide canvas and
it has got incredibly important issues. I feel absolutely honoured to
be able to contribute. This is what
has been said by Jayanthi Natarajan
after she has been indicted as the
new environment and forests minister in the latest cabinet reshuffle by
UPA. Ms Natarajan, the only known
face from Tamil Nadu in the congress has come back to the council
of union ministers after a gap of 13
years. Jayanthi Natarajan born on
June 7, 1954 is the grand daughter
of former Tamil Nadu chief minister M. Bakthavatsalam and a lawyer by profession. A member of the
Indian National Congress, she has
been elected three times as a Rajya
Sabha member from Tamil Nadu.
During the 90s Jayanthi Natarajan
and other leaders from Tamil Nadu
had founded the Tamil Maanila
Congress under the leadership of
GK Moopanar. Later, TMC became
a part of United Front govt at the
centre and Natarajan was appointed as the Minister of State for Coal,
Civil Aviation and Parliamentary
Affairs in 1997. With the death of
TMC chief Moopanar, TMC merged
with the Congress in 2002.
With earlier Environment minister Jairam Ramesh raising the bar
of performance, a tough and important job lies ahead for Natarajan.
At a time when global warming is
the most important issue of concern for mother earth, no doubt the
new minister will have to do a lot
for the protection and conservation
of the environment. Apart of bringing in new schemes and projects,
she will also have to keep an eye
on environment clearances for industrial projects so as to avoid controversies like the ones related to
Lavasa and Vedanta. The portfolio
currently held by Jayanthi Natarajan in the Union ministry is a very
crucial one as the rapid growth in
population, uncontrolled urbanization and industrialization is leading
to a number of environmental is-
JAYANTHI NATARAJAN
UNION MINISTER FOR ENVIRONMENT AND FORESTS
August 2011
AGRICULTURE TODAY
59
60