Several schemes to boost public investment in agriculture sector
The Government of India has launched several schemes to increase public investment in agriculture sector, such as, the Rashtriya Krishi Vikas Yojana (RKVY), National Food Security Mission (NFSM), Development and Strengthening of Infrastructure Facilities for Production and Distribution of Quality Seeds, National Horticulture Mission (NHM), Integrated Scheme of Oilseeds, Pulses, Oil Palm and Maize (ISOPOM), Gramin Bhandaran Yojana etc.
In addition, Government has substantially improved the availability of farm credit and increased Minimum Support Price to improve investment in the farm sector.
Allocation of the Department of Agriculture & Cooperation has increased considerably from Rs.5560.00 crore in 2007-08 to Rs.20208.00 crore in 2012-13 facilitating more investment in agriculture sector. Read more…
Higher cane SAP to substantially offset impact of higher sugar prices for UP sugar mills: ICRA
The Uttar Pradesh (UP) Government has, through a December 7, 2012 order, announced a Rs. 40/quintal (qtl) increase in the State advised price (SAP) of sugarcane for the sugar year (SY) 2012-13 (October-September season). The order raises the cane price for the normal varieties from Rs. 240/qtl in SY2011-12 to Rs. 280/qtl in SY2012-13, and that for the early maturing varieties from Rs. 250/qtl to Rs. 290/qtl. For the rejected varieties, the SAP has been raised from Rs. 235/qtl to Rs. 275/ qtl. At these prices, ICRA expects the landed cost of cane (inclusive of basic SAP, purchase tax, society commissions and inward freight costs) to be around Rs. 290-295/qtl.
While ICRA expects UP based sugar mills to benefit from higher prices in SY 2012-13 as well as higher crushing volumes (around 15% crushing growth) and also higher recovery rates (ICRA anticipates improvement of around 0.3%), higher cane costs are likely to substantially offset the positive impact of the aforesaid.
According to ICRA’s estimates, with the new cane prices, the cane cost of production for sugar is likely to increase by around Rs. 3500/MT and stand at Rs. 30500-32000/MT, given that the recovery rates for most UP-based sugar mills range between 9 and 9.5%. Read more…
Govt takes steps to meet demand edible oils
Various steps taken by Government to meet the demand of edible oils in the country are as follows:-
The import duty on crude and refined edible oils has been reduced to zero percent and 7.5% respectively.
The Government has allowed State Governments to impose stock limits on edible oils and oilseeds, upto 30.09.2013.
Export of edible oils has been banned except coconut oil (through Cochin Port) and certain oils produced from minor forest produce and edible oils in small packs upto 5 kg. subject to limit of 20,000 tons per year.
The Government have launched a Scheme for distribution of subsidized imported edible oils to States/UTs since 2008 at a subsidy @ Rs.15/kg. The Scheme has been extended in subsequent years and further extended upto 30.09.2013.
This information was given by the Minister of State (IC) for Consumer Affairs, Food & Public Distribution Prof. K.V.Thomas in a written reply in the Rajya Sabha today.
Vishwanath Sugar and Steel Industries becomes Vishwaraj Sugar Industries
The Vishwanath Sugar and Steel Industries Ltd has now become Vishwaraj Sugar Industries Ltd. The Company earlier had plans to diversify in the Steel Sector, but since it has deferred plans indefinitely, the name of the Company has been changed to Vishwaraj Sugar Industries Limited to reflect the present activities of the Company.
The market regulator SEBI has already given its nod to launch an initial public offer of the Company and it proposes to enter the capital markets to fund its expansion plan in the near future. Ashika Capital Limited is the sole Book Running Lead Manager for this IPO.
The Company is primarily into the business of production of sugar, alcoholic spirits by distillation including ethanol, blending and bottling of Indian Made Foreign Liquor (IMFL) and generation of power. The Company has an integrated sugar production facility located at Bellad Bagewadi, Belgaum District in North West Karnataka, which has been classified as a High Recovery Zone for sugar production by the Government of India. Read more…
Asia's future food security hinges on modernization of farm to market chains: ADB
Asia’s ability to keep food prices in check and ensure long-term regional food security will require the region’s farm to market supply chains to become more efficient and cost effective, says a new Asian Development Bank (ADB) study.
“Asia faces a formidable challenge of feeding 5bn people by 2030,” said Bindu Lohani, ADB Vice President for Knowledge Management and Sustainable Development. “Rising populations and incomes, resource degradation, and climate change will keep putting upward pressure on food prices, requiring vast improvements to ensure adequate, affordable food supplies.”
The Quiet Revolution in Staple Food Value Chains: Enter the Dragon, the Elephant and the Tiger, produced by ADB and the International food Policy Research Institute in response to the 2008 spike in food prices, analyzes domestic rice and potato supply chains in Bangladesh, India and People’s Republic of China (PRC).
It finds that the rapid modernization of staple food chains in Asia has allowed farmers to increase control over what they produce, and to whom they sell. The transformation has been particularly dramatic in the PRC, with modern rice mills increasingly buying direct from farmers, cutting out middlemen. In India the spread of modern cool storage facilities is giving consumers year-round access to potatoes, and delivering substantial price advantages to farmers.
More isolated rural areas have seen an increase in jobs and incomes from new links with commercial urban centers, and better infrastructure, technologies and policies. At present the benefits are not always shared equally, however, with large and medium-sized farmers typically getting the lion’s share of subsidies and marginal farmers largely missing out. Read more…