Top Stories 

Kharif crops sown in 80.2mn hectares: Govt

Ministry of Agriculture has prepared District Contingency Plans for 320 districts which have been uploaded on the website of Department of Agriculture & Cooperation. States have been advised to prepare location specific alternatives based on these Plans in consultation with respective State Agricultural Universities and arrange seeds of alternante crops/varieties to implement such plans.

Due to deficient rainfall during South-West monsoon 2012, total Kharif area sown is 802.09 lakh hectares as against the normal of 854.86 lakh hectares as on 08.08.2012.

There has been shortage of green and dry fodder, which is further aggravated due to deficient rainfall in several States. Ministry of Drinking Water & Sanitation has reported that States namely Maharashtra , Karnataka and Rajasthan are witnessing scarcity of drinking water. Read more…

Monsoon rains 2% below average in week to Aug 15

According to the India Meteorological Department (IMD), monsoon rains in India were 2% below average in week to Aug 15, reports said. The monsoon deficit of the season till Aug 15 has narrowed to 15% of the long period average.

In July, the wettest month of the season and also the key planting month, the rains were about 13% below average. Rains picked up during the month of July as compared with the first month of the season when the rains were 29% below average.

Still, problems are far from over as two and a half months of the four-month long season are already over and if the monsoon does not continue to show improvement, inflationary pressures, especially food inflation, would most likely be stoked again.

The government has taken steps to cut irrigation costs and increase fodder supplies for livestock farmers. But it has avoided imposing any curb on exports of agricultural products or a ban of futures trading in them.
In India, where agriculture and farming account for 15% of the $2tn economy, timely and sufficient rainfall is extremely crucial as 55% of the arable land depends on rains for water needs.

Earlier this month, the Gujarat government, declared 14 districts and 152 talukas of the state as "scarcity hit", reports said.

A drought is declared when monsoon rains are below 90% of long-term averages in the entire season. India last experienced a drought in 2009.

Results

Jain Irrigation Q1 EBITDA at Rs1831 mn

Jain Irrigation has declared lower sales by 9.40 % due to planned reduction in Micro irrigation business as part of its effort to revamp its micro irrigation business model. These lower sales coupled with significant mark-to-market notional forex losses due to depreciating rupee has resulted in net loss of Rs. 169 mn.

Company reported EBIDTA of Rs. 1,831 mn at 21.70 % (PY Rs. 2,304 million at 24.70 %) registering reduction by 300 basis points mainly because of lower absolute profits in Micro irrigation business with less revenue of 32 % YoY.

Pipe business has registered very strong growth of 33.70 % indicating good rural demand. Agro processing business reveals 6.50 % lower growth in value despite 37 % positive growth in quantities shipped due to lower raw-material price of totapuri mangoes. Overall exports of Company’s various products grew by 34 % in the current quarter with major growth coming from Micro irrigation business in Africa.

Based on management numbers, overseas subsidiaries have registered approximately 10 % growth in April-June quarter. Thus, consolidated sales for the quarter will be at Rs. 12,615 million (PY Rs. 12,771 million) registering nominal negative growth of only approximately 1.00 %.

Board also took on record FY2012 consolidated results. Overall business grew to Rs. 49,329 mn (PY Rs. 41,634 million) registering 18.50 % growth. Net profit was at Rs. 2,235 mn (PY Rs. 2,807 million) registering decline due to mark-to-market forex losses despite strong operational performance. Consolidated EBIDTA grew to Rs. 9,548 mn (PY Rs. 7,754 million) showing significant growth. EBIDTA of overseas subsidiaries grew substantially to Rs. 902 million (PY Rs. 378 million).

Company’s Managing Director, Mr. Anil Jain said, “ In last 9 years for the first time, we have negative revenue growth in the domestic market as well as net loss due to mark-to-market forex charge as rupee moved by almost Rs. 5 between end March 2012 to end June 2012. This loss is temporary in nature due to Forex and we will maintain our profitability for the entire year as before. Reduction in revenue growth was anticipated and part of our deliberate strategy to change our underlying business in Micro irrigation.

Expected outcome of this strategy over next few quarters will result in reduction in net subsidy receivable from state governments and create new business model which will enable sustained growth going forward with improved working capital cycle. We expect micro irrigation business to start doing better from 3rd quarter onwards.”

“We also see some positive changes in the way various state governments are operating and we are optimistic that modified policies of state governments will bring more predictability in finances for farmers. During last month we have also received long awaited nod from regulator to start our non banking finance company named as Sustainable Agro-Commercial Finance Limited (SAFL).

This entity will start operating from October 2012 in coming busy season. Its functioning will further aid us in executing our strategy of reducing receivables. We have already achieved about Rs. 1,200 mn reduction in subsidy receivables in past quarter and are confident of reducing by more than Rs. 5,000 million in the entire year.”

Domestic News

Public Sector seed companies to popularise quality seeds: Harish Rawat

Minister of State for Agriculture and Food Processing Industries, Harish Rawat, today called upon public sector seed companies to work for reaching interiors of the country and producing seeds suitable for small farmers.

While commending the Indian seed industry for having achieved self-sufficiency in quality seed production,Rawat stated that more focus needs to be paid on fodder crops, green manure and minor millets, which have not drawn adequate attention so far. At the same time, there is a need for production and distribution of hybrids as these have the potential to increase farm productivity and profitability.

Rawat was speaking at the function to inaugurate the Golden Jubilee Year of the National Seeds Corporation.

Highlighting the role played by NSC in bringing out green revolution in the country, the Minister said: ‘In last fifty years, NSC has emerged as the link between plant breeding research and farmer by multiplying and disseminating the seeds of new varieties. In the year 1966-67, NSC played a pivotal role in bringing Green Revolution in the country by undertaking large scale production of paddy seeds Taichung native-1 and handling the import of 18000 tones of dwarf Mexican wheat seed and monitoring the performance of these seeds with states for success and bringing food security in the nation.

‘With the liberalization of seed policy, big companies have also established their facilities in India. However, they are mostly concentrating on specialized crops and varieties which are their own research product and selling as proprietary item. As such, volume seed remains either with the public sector or in the hand of small companies with limited resources. Given the situation, role of public sector units needs to realign itself to be more farmer friendly and their product has to be as per the market demand.

Recognizing the contribution of seed companies in the public sector in the past, the goodwill they have established in the market and the level of infrastructure and reach they possess, I feel these companies, including NSC, should work in mission mode with clear vision as to what country needs in the light of growing population, limitation of arable land, constraints in expanding irrigation facilities and adverse impact of climate, chemicals and fertilizer and growing demand of type and kind of seeds.’ Read more…

National Food Security Mission helps record Foodgrain Production

Govt prepares Contingency Plans for 320 Districts

Coarse Grains production to be promoted through schemes

More help for those coping with the drought

Govt launches 'Green Revolution in Eastern India'

Per capita availability of foodgrain at 463 gm/day

India's inflation falls below 7% in July...Beats estimates

Web-based fertilizer recommendation system developed

Extra sugar released to contain prices: Govt

Rainfall till Aug. 7 ~83% of LTA: Govt

Food subsidy to touch Rs. 924.93bn during FY13

International News

USDA predicts huge drop in corn yield

U.S. Department of Agriculture predicts huge fall in the corn harvest due to continues droughts. As a result corn prices will surge.

According to the monthly reports USDA projected the corn harvest would plunge by 2.2 billion bushels, or by 22.6 bushels per acre, resulting in a harvest of 123.4 acres per acre. That's worse than expected and puts the 2012-2013 yield on track to be the lowest since the 1995-1996 harvest.

The USDA expects farm prices for corn to hit a record high this season of $7.50 to $8.90 per bushel, sharply higher than its July forecast of $5.40 to $6.40 per bushel, reports added.

G20 plans response as food prices rises: report