Agriculture Newsletter - August 30 to September 03, 2010

Top Stories 

Farm sector growth up 2.8% in April-June quarter
Agriculture and allied sectors recorded a growth of 2.8% in the first quarter of 2010-11 fiscal as against 1.9% in the same period last fiscal. According to reports, cereals production declined by 2.2% to 104.07MT from 106.45MT.
 
Pulses output showed an increase of 4.2% to 10.29MT from 9.88MT during the review period. Cotton production grew by 7.5% to 23.93 million bales of 170 kg each, while sugarcane output declined by 2.6% to 277 MT.
 
In FY10, both the sectors had recorded the lowest growth in five years at 0.2%, due to widespread drought that affected almost half of the country. Foodgrains production had declined by 16MT to 218.2MT, adds report.
 
Soyabean production seen at over 90 lakh tons
The Soyabean Processors Association of India has reportedly estimated over 90 lakh tons production of oilseed during this kharif season despite four per cent reduction in the total sown area. However, last year, the total production was 97.25 lakh tonnes. During this kharif season, the total sown area came down to 93 lakh hectares from last year’s 97 lakh hectares.
 
Rajesh Agrawal, the SOPA Coordinator, was quoted as saying that the crop condition in major soyabean producing states is quite good and if all goes well, and then it will cross 90-lakh-ton mark in the current kharif season. However, he said the exact estimate of total production will be done after some time.
 
Monsoon
 
Monsoon was 16% above normal in week to Sept. 1: IMD
Southwest monsoon rains were 16% above normal in the past week, compared with 29% above normal in the previous week, the Indian Meteorological Department (IMD) said on Thursday. The weather office sees good showers over most parts of the country, except the eastern region, where the seasonal rains were poor. Total rainfall since June 1 till date is 1% below normal, the IMD said.
 
The long period average (LPA) of the September rainfall over the country as whole is 17.47cm based on the 1941-90 climatology, according to IMD. The model error is 15% of LPA. Rainfall over the country as a whole for September rainfall is likely to be normal, the IMD says in its web site. Quantitatively, September rainfall for the country as a whole is likely to be 115% of long period average (LPA) with a model error of ±15%.
 
The outlook for the 2010 Southwest Monsoon Season Rainfall is that the monsoon season (June to September) rainfall for the country as a whole is likely to be within the normal limits as predicted by IMD earlier.  The season (June to September) rainfall over the three geographical regions (Northwest India, Central India and South Peninsula) is also likely to be within the normal limits.
 
However, the season rainfall over Northeast India is likely to be below normal. Scattered rainfall has occurred over Uttarakhand, west Uttar Pradesh, Chhattisgarh and Gujarat between 0830 to 1730 hours IST of September 1, according to the weather bureau. Isolated heavy rainfall would occur over Uttrakhand, west Uttar Pradesh, northeastern States and Andaman & Nicobar Islands during next 48 hours, the IMD says. Fairly widespread rainfall activity would occur over west coast, northeastern states, Chhattisgarh, Orissa and Andhra Pradesh, it adds. 
 
Domestic News
 
PSUs to import 3.39 lakh tons pulses
The Public Sector Undertakings (PSUs), PEC, MMTC, STC and NCCF have contracted 3.39 lakh tons of pulses during the current financial year so far.
 
The share of PEC is 2,23,700, MMTC 50,000, NAFED 27,000, NCCF 21,300 and STC 17,000. It includes 1,73,461 tons for supply to States for distribution under Public Distribution System (PDS).
 
Of the total contracted quantity, 1.89 lakh tons pulses have arrived and 0.97 lakh tons have been disposed from the stocks with these agencies up to Aug. 26.
 
As on Aug. 26, 97,946 tons have been supplied to Andhra Pradesh, Tamil Nadu, Rajasthan, Maharashtra, Kerala, Uttar Pradesh, Haryana, Himachal Pradesh, Punjab for distribution under PDS.
 
In 2009-10, these companies supplied 2,50,776 tons of imported pulses to these states for distribution through PDS
 
India exports 5.20 lakh tons fish
 
Govt to allow 55-lakh bale cotton export from Oct 1: report
 
Govt to release 2.5 MT foodgrains to poor
 
Sugar stocks spurt on sector decontrol reports
 
NABARD to raise Rs6.25bn from six-month notes: report
 
India refiners to buy 1bn ltr ethanol from sugar mills: report
 
Restore subsidy for rejuvenation plains: Tea Association
 
Sugar surplus estimate for next season cut to 3.52 mt
 
Shree Renuka likely to crush 5.5MT cane in 2010-11 season: report
 
Govt hikes onion MEP for September by US$55 per ton: report
 
Nabard sanctions Rs90-cr loan to Karnataka for rural infra projects: report
 
Usher Agro FY10 net profit up 58%
 
Incentive to packaged tender coconut water will boost exports: Dr Ananda Bose
 
Global News
 
Sinochem hires HSBC for Potash bid: report
Sinochem International Corporation has reportedly hired HSBC Holdings PLC to advise on its options over a possible bid for Canadian fertilizer maker Potash Corporation of Saskatchewan.
 
Potash recently rejected a US$38.6bn offer from Anglo-Australian mining giant BHP Billiton, which later turned its offer hostile, taking the bid to Potash shareholders.
 
Dow AgroSciences announces agreement to acquire assets of Grand Valley Hybrids