Agriculture Newsletter - February 06 to February 10, 2012

Top Stories 
 
State Food Ministers discuss reforms in PDS
Ministry of Consumer Affairs, Food & Public Distribution has convened a meeting of State Food & Agricultural Ministers to discuss reforms in PDS. Improvement in Targeted Public Distribution System (TPDS), procurement of foodgrains and enhancement of storage capacity in view of proposed National Food Security Act are also in the agenda of the meeting.
 
Two-day conference, to be held on February 8 & 9, 2012 in New Delhi, will be inaugurated by Shri Pranab Mukherji and will be addressed by Agriculture Minister,  Sharad Pawar and Consumer Affairs, Food & Public Distribution, Prof. K.V. Thomas. Senior officials of various Central ministries, Planning Commission and UIDAI will also participate during the Conference.
 
Issue of additional requirement of foodgrain production, procurement, required storage capacity and quality control will be discussed in detail with the respective stakeholders during the meeting. The Government is working on improving procurement infrastructure and optimization of storage and transportation cost and losses. It is also considering committed transportation system for speedy movement of foodgrains to consuming states from procurement centres. Direct payments to the farmers to encourage procurement is also being adopted. State Governments will be requested to identify steps to further strengthen these efforts during the discussions.
 
The Government has launched computerization of PDS end to end, some pilot projects have already been completed successfully and in some States significant progress has been made in issuing of biometric cards, identification of beneficiaries for various categories and elimination of bogus ration cards. The Conference will discuss further strengthening these efforts and linking it with UIDAI.
 
Senior officials from Ministry of Women & Child Development, Ministry of Rural Development, Department of Agriculture, Ministry of Home Affairs, Ministry of Housing & Urban Poverty Alleviation, Department of School Education and Literacy, Department of Economic Affairs, National Advisory Council and Planning Commission will also make presentations during the meet.
 
In Focus News
 
Developmental program needed to address climate change issues: Harish Rawat
Climate change related issues need to be addressed in a systematic manner through developmental programmes and with a view to increase productivity and profitability of small and marginal farmers. This was stated by Shri Harish Rawat, Minister of State for Agriculture, Food Processing Industries and Parliamentary Affairs in his inaugural address at International Conference on Climate Change, Sustainable Agriculture and Public Leadership which began here today.
 
Shri Rawat said, “Climate change effects will be more pronounced in Indian conditions as there are various agro-climatic zones. The most affected will be marginal and small farmers who constitute 80% of Indian farming community. Therefore, a comprehensive and multidimensional strategy is needed to mitigate the impact of climate change.”
 
The Minister said, “Climate is central to many critical agricultural decisions, ranging from farm to policy level. The Government of India has taken a stance, to address climate issues, by fully participating in international conventions, such as the United Nation Framework Convention on Climate Change. At domestic front, the Government is developing national climate change response policies to mitigate the impact of climate change.
 
Referring to timely initiatives taken by the Indian Council of Agricultural Research, Shri Rawat said, “We must remember that Indian farmers are quite resilient to climatic variance, and they have lived and practiced agriculture over the centuries against all odds. I appeal to the scientists to document the indigenous wisdom of our farmers, who have been adapting themselves, to cope-up with climate variability over the centuries.”
 
Earlier, Dr. William D Dar, Director General, International Crops Research Institute for Semi Arid Tropics (ICRISAT) said that climate change is affecting every region in the world and to feed growing population production needs to increased up-to 75-100% by 2050.
 
Dr. R.B. Singh, President, National Academy of Agricultural Sciences and Dr. B.P. Singh, President of National Council for Climate Change, Sustainable Agriculture and Public Leadership also addressed the conference.
 
The Conference is jointly organized by the ICAR and National Council for Climate Change, Sustainable Development and public Leadership. Delegates around the World, senior officials of ICAR and NARS, Directors of different institutes, scientists, researchers and entrepreneurs are participating in the conference.
 
Domestic News
 
Sugar decontrol...Govt panel to expedite work after polls
K V Thomas, Food Minister was quoted as saying that the panel set up to examine issues related to India sugar industry will speed up work after the conclusion of elections, which will also consider allowing more sugar exports at a meeting.

According to reports, the panel is headed by C Rangarajan, chairman of the prime minister’s economic advisory council, while the members include Kaushik Basu, chief economic adviser in the finance ministry, and secretaries at the farm and food ministries.

The stocks of Balrampur Chini Mills are up 1% or Rs. 0.75, while the shares of Shree Renuka Sugars are up by Rs. 0.30 or 0.77%.
 
Govt registers NCCD as society
The Union Cabinet today gave its ex-post facto approval for registering National Centre for Cold Chain Development (NCCD) as a society under the Societies Registration Act, 1860 with its Memorandum of Association and Rules and Regulations.
 
All stakeholders will be having membership in the society in a Public Private Partnership (PPP) mode. The NCCD will be having a Governing Council under the Chairmanship of Secretary with 22 members, covering government officials, Confederation of Indian Industry (CII), Federation of Indian Chambers of Commerce & Industry (FICCI), growers, cold chain equipment manufacturers/supplies etc.
 
A sum of Rs.25 crore has been allocated as one time grant for setting up a corpus fund for NCCD.
 
Background:
 
With a production of 71.5 million MT of fruits, 133.7 million MT of vegetables and 17.8 million MT of other commodities like flowers, spices, coconut, cashew, mushroom, honey etc., India is the second largest producer of horticultural commodities in the world. However, a significant portion of the produce, particularly perishables like fruits, vegetables, flowers etc. goes waste due to post harvest losses.
 
In order to address this issue the Task Force on Cold Chain Development was constituted by Government of India during 2008. The Task Force, in its report, recommended the formation of a dedicated institution for promoting cold chain development in the country. The National Spot Exchange (NSE), in its study on Cold Chain Grid in India (2010) also recommended the need for a robust cold chain infrastructure for reducing the post harvest losses of perishables.
 
India Pulses and Grains Association announces GLOBAL PULSES CONCLAVE
India Pulses and Grains Association (IPGA), the country’s apex body of pulses and grains industry & trade, announced the GLOBAL PULSES CONCLAVE (GPC). A first-of-its-kind conclave in India for the world pulses industry and trade, GPC will be hosted from February 15 to 17, 2012 at Hotel Renaissance Convention Centre in Mumbai. GPC is supported by the Government of India, Ministry of Consumer Affairs, Food and Public Distribution (Department of Consumer Affairs).
 
Pravin Dongre, President - IPGA speaking about GPC said, ‘Asia is the focus of the world pulses market and GPC will enable stakeholders in the pulses sector viz., Producers, Processors, Traders, Consumers, Machinery Suppliers, Policy Makers, Financiers, Analysts and related others to get together and plan their business strategies for the year ahead by networking with business associates from around the world.”
 
Shri Rajiv Agarwal, (I.A.S.) Secretary to the Government of India, Department of Consumer Affairs, Ministry of Consumer Affairs, Food & Public Distribution shall inaugurate the GPC. Prof K. V. Thomas, Union Minister of State (Independent Charge) for Food, Consumer Affairs & Public Distribution has consented to deliver the valedictory address.
 
G. Chandrashekhar, Chairman - GPC Organising Committee said, “GPC will have three key components viz., a Seminar, an Exhibition and a series of B2B meetings between stakeholders. The seminar will comprise of a series of stimulating presentations by speakers from India and abroad.” Read more…
 
Floriculture industry to cross Rs. 8K crore mark by 2015: ASSOCHAM
 
FY13 fertiliser subsidy may surpass Rs. 600bn
 
International News
 
FAO Food Price Index rebounds in January
The FAO Food Price Index rose by nearly two% or four points from December to January – its first increase since July 2011. Prices of all the commodity groups in the index registered gains last month with oils increasing the most, followed closely by cereals, sugar, dairy products and meat. At its new level of 214 points, the index stood 7% lower than in January of last year, however. “There is no single narrative behind the food price rebound – different factors are at play in each of the commodity groups,” said Senior Grains Economist Abdolreza Abbassian. “But the increase, despite an expected record harvest and an improved stocks situation, and after six months of falling or stable prices, highlights the unpredictability prevailing in global food markets,” he added.

Poor weather
“I can’t see that the usual suspects – the value of the dollar and oil prices – were  much involved in January. But one reason is poor weather currently affecting key growing regions like South America and Europe. It has played a role and remains a cause for concern,” he concluded.

The FAO Cereal Price Index averaged 223 points in January, up 2.3% (5 points) from December. International prices of all major cereals with the exception of rice rose, with maize gaining most, 6%.  Wheat prices also gained, though less significantly.

Prices mostly reflected worries about weather conditions affecting 2012 crops in several major producing regions. Fears of decline in export supplies in the Commonwealth of Independent States also played a part.

The FAO Oils/Fats Price Index rose to 234 points in January, up 3% (6 points), from December. Firming import demand for palm and soy oils, combined with a seasonal decline in palm oil production were the main driving forces behind the increase.

Production and stocks up
According to FAO’s latest forecast world cereal production in 2011 is expected to be more than sufficient to cover anticipated utilization in 2011/12. Production is expected to reach 2 327 million tonnes – up 4.6 million tonnes from the last estimate in December. That would be 3.6% more than in 2010 and a new record. Cereal utilization in 2011/12 was lowered slightly from December, to nearly 2 309 million tonnes, but still 1.8% higher than in 2010/11. That would put cereal ending stocks by the close of seasons in 2012 at 516 million tones, 5 million tonnes up on FAO’s last forecast.

Meat, dairy and sugar prices also up
The FAO Meat Price Index averaged 179 points, half a% (1 point) above its December value. Prices of the various meat types followed mixed directions, with pig meat up 2.8% on expectations of strong imports by China and poultry down by one%. The FAO Dairy Price Index averaged 207 points in January 2012, up 2.5% (5 points) from December. The FAO Sugar Price Index rose to 334 points in January, up 2.3% (7.4 points) from December, but still 20%  (86 points) lower than in January last year. The increase was largely driven by less than favourable weather conditions in Brazil, the world’s largest producer and exporter.