Indian commodity futures post first fall in volume

India's commodity futures turnover posted its first-ever drop in the two weeks to April 15, as traders took to the sidelines fearing more bans after guar trade was suspended and as striking jewelers stayed away from hedging.

The turnover dropped 13.5 percent from a year earlier to 5.13 trillion rupees ($97.21 billion) during April 1-15, the commodities market regulator Forward Markets Commission (FMC) said.

Bullion trade in the world's top buyer of gold fell 27.3 percent to 2.39 trillion rupees, while turnover in agri commodities rose 20 percent compared with the previous fortnightly rise of 75 percent, the FMC said.

"The confidence of holding positions has declined on apprehensions of banning more agri commodities," said Shikha Mittal, an analyst with Karvy Comtrade.

India allowed futures trading in commodities in 2003 and has 21 commodity bourses, including six operating at the national level.

It banned futures trade in guar in late March on allegations of excessive price volatility.

"In the last seven years that I have been associated as a participant, this is the first time that I have noticed that rupee has played such a negative role," said Gnanasekar Thiagarajan, director of Commtrendz Research.

"Making money in MCX (Multi Commodity Exchange) lately has become very difficult because of the rupee factor," he said.

The rupee plays a vital role in determining the cost of dollar-quoted base and precious metal.

The local currency has depreciated 6.2 percent since February, keeping the gains in metals capped.

Volumes in metals were steady at 1.13 trillion rupees, while energy volumes fell 8.25 percent to 830 billion rupees from April 1-15.

Jewellers across India called off a three-week long strike on April 7 after assurances from Finance Minister Pranab Mukherjee that the government would consider scrapping plans for an excise duty on unbranded jewellery.

Analysts expect the futures market turnover to recover after the government issued a statement saying it does not consider banning futures trade in agri commodities as a solution to check price volatility.

The FMC had also cut positions on chana and oilseeds futures to curb excessive speculation.

"Volumes will not fall much on the assurance given by the government," said Karvy's Mittal.

India’s farmers pull plug on animal power

(LFP) As a shiny red harvester bounces across the black earth into the first row of sugar cane, excited schoolchildren run after it and several dozen men stand gaping in the wake of its swift progress.

It’s the first time that Perle, a village on the banks of the Krishna river in Maharashtra state, has seen a machine used for cutting the tough cane.

“This machine will harvest my entire field today,” says Prashant Kadam, the young owner of the compact two-acre plot. “Had it been harvested by labourers, they would have taken at least a week.”

A short drive away in a field where the sun is just getting hot enough to halt work, a team of 12 couples cut cane the way it’s been done for centuries — with machetes. They load the cane into carts each pulled by two white bullocks with gaily painted horns and head for the local mill, which dominates this sugar-growing valley some 300 kilometres south of Mumbai.

It is a way of life that is fast disappearing in the world’s second-biggest producer of rice, wheat and sugar. India is finally embracing mechanization after centuries of farming with methods the United States threw out with the British.

Interviews with farmers, tractor salesmen, economists and agricultural officials show a country on the cusp of deep change. Indian food consumption is rising and farmers are under pressure to produce more, faster and cheaper. Yet Indian farms traditionally use far fewer farm machines than their peer nations, partly because their acreage is so small.

Lately however, farmers have been buying new tools and machines to cope with a labour shortage triggered by government policies aimed at promoting non-agricultural work.

Tractor sales have increased 42% in India over the last five years to an estimated 552,434 in 2011-12, according to industry figures.

The consequent boost to their productivity is helping them sustain more expensive lifestyles and that could spur India’s cantering growth, averaging 7% to 8% a year.

The sweeping changes are crucial as India adds the equivalent of an Australia to its 1.2 billion people every year. Many of them are too poor to feed themselves and rely on government subsidized grains. At the same time, the swelling middle class of Asia’s third-largest economy is demanding more and better quality food.

By 2020-21, Indians will consume 280 million tonnes of food grains a year, compared with a record output of 241.6 million tonnes in 2010/11, said V. Venkatachalam, special secretary at the Farm Ministry.

At the moment, India still uses under half the amount of power on farms that rival Asian giant China does and a tenth that of Japan.

It was Sangramsingh Jayanvantrao Jadhav’s father who bought the harvester that caused such a sensation in Perle, where cane has grabbed more than 80% of cultivatable land.

Jadhav takes the harvester around to neighbouring farmers, such as Kadam, who can work late into the night and through the noon-time heat in its air-conditioned cab.

“The harvester is new for the farmers. So we are convincing them about its benefits,” Jadhav says. “From next year, we will be working in full swing.”

Renting out equipment makes sense for many farmers in India, whose plots and income are too small to justify outright purchases of expensive vehicles and tools.

Farm Minister Sharad Pawar has thrown his support behind custom hiring and the Central Institute of Agricultural Engineering (CIAE) says renting equipment could be the best way to boost production in India.

India likely to avoid drought again this year

NEW DELHI (Reuters) – India is likely to avoid a drought this year as monsoon rains needed to irrigate six in 10 farms in the major grains producer are likely to be average.

India is the world’s second-biggest producer of rice, wheat, sugar and cotton.

Rains during the June-September season are likely to be 99 percent of the long-term average, Earth Sciences Minister Vilasrao Deshmukh said on Thursday, raising hopes for bumper harvests and a chance to rein in high inflation.

That falls within a “normal” range of 96-104 percent of a 50-year average of 89 centimetres for the four-month season used by the India Meteorological Department (IMD).

The last time there was a drought with rains below this range was 2009 and before that, in 2004.

“This year’s monsoon is most likely to be normal,” Deshmukh said at a news conference.

India will give its final monsoon forecast in June, IMD chief L.S. Rathore said.

Monsoon rains, vital for agricultural output and economic growth, irrigate about 60 percent of India’s farms. Farming accounts for about 15 percent of the nearly $2 trillion economy.

“Normal monsoon will boost food grain production and that should help in moderating food inflation,” said Harish Galipalli, head of commodities research at JRG Wealth Management.

Higher farm output could encourage the government to allow more exports of sugar and grains, he added.

(For a graphic on India monsoon – forecast vs actual, click link.reuters.com/xux88r)

India has allowed 3 million tonnes of sugar exports so far this year and has removed a cap on wheat and rice sales overseas after a bumper harvest last year added to overflowing stocks.

After 2009′s drought, the country had to import about 2.5 million tonnes of sugar, nearly 10 percent of the global surplus, sending international prices spiralling.

“Certainly (sugar production) will be more than our annual consumption of 22 million tonnes. India will remain a net exporter in 2012/13,” said Ashok Jain, president of the Bombay Sugar Merchants’ Association.

Higher output could also mean wealthier farmers and that might raise gold demand, industry players said.

“There will be more liquidity in the hands of farmers and that will increase demand for gold. The same thing applies to silver,” said Kumar Jain, vice-chairman of the Mumbai Jewellers Association.

India was the world’s biggest buyer of bullion last year, purchasing about 969 tonnes and prompting the government to slap duties on imports as it worried over the impact of such hefty dollar purchases on the current account.

About 60-70 percent of gold demand comes from rural areas.

Monsoon rains, however, slow iron ore shipments from India, which is one of the world’s largest exporters, as roads become difficult to travel and ports close.

“The monsoon will impact iron ore shipments especially from Goa and Paradip in Orissa. Goa port will get shut in a month’s time,” said Dhruv Goel, managing partner of iron ore trader Steelmint.

Average monsoon rains would boost sales of seeds and fertiliser.

“Better monsoon means better business prospects. If a farmer thinks, more rains would bring good harvest, he will be happy to spend more on fertilizers and better quality seeds,” said Naveen Kapoor, president of the agriculture business of Zuari Industries Ltd (ZURI.NS).

The latest government forecast is in line with comments from the IMD chief and a global weather forum earlier this month.

The government said there was a small chance the El Nino weather mechanism would emerge in the second half of the monsoon season. In 2009, that turned rains patchy and led to drought.

“The larger probability is that it is going to be a normal monsoon, but there is a slight chance or 24 percent chance that it could be below normal,” said an IMD official, pointing to a 5 point margin of error in the forecast average rains.

(Additional reporting by the Mumbai commodities team; editing by Jo Winterbottom and Jason Neely)

Farmer compensated for poor Bt cotton seeds

Shailee Dogra 

Hindustan Times

In a significant judgment, the consumer courts have come to the aid of a farmer in Punjab's Muktsar district who suffered losses because of substandard Bt cotton seeds. Though relief for Baljinder Singh comes after more than four years, the dealer and manufacturer of the poor quality seeds have been held liable for, and asked to compensate for his loss.

Baljinder, who owns 1.5 acres of agricultural land at Gurusar village in Muktsar's Gidderbaha tehsil, first complained to the Muktsar agriculture officer in August 2007 after which the field was inspected by technical experts. Armed with their report, he demanded that Garg Pesticides and Rallis India pay him Rs. 1 lakh as compensation, but the sellers and firm did not respond.

He then moved the district consumer disputes redressal forum in Muktsar.

In his complaint to the forum, he said he purchased BT cotton seed packets in May 2007 from Garg Pesticides at the Gidderbaha grain market for Rs. 2,250, and sowed them in his land. He said Mumbai-based firm Rallis India Limited had produced the seeds. "At the time of purchase I was told that the seeds were of good quality and would yield 12 to 14 quintals of cotton crop," he said in his complaint before the forum.

However, despite taking good care of the crop and spending Rs. 13,750 on fertilizers, irrigation, pesticides and payment to labourers, the plants neither grew to proper height nor bore fruit flowers, as assured by Garg Pesticides, the complaint said.

Mango production in Goa likely to fall by 65 pc

Mango production in Goa is expected to decline by up to 65 per cent this year, largely due to uneven weather conditions in the state in the last two seasons, according to the agriculture department. 

A rough estimate worked out by the department indicates that the production in 2012 would be 3,500-4,000 tonnes as compared to 9,000 tonnes in 2011. Director of Agriculture Satish Tendulkar said last year's prolonged monsoons have resulted in the crop decline. 

"The monsoons were extended up to October-November last year due to which there was no stress on the trees," Tendulkar said, adding that 'stress' for the mango tree is crucial for enhanced production. This means, Goa will have to depend on mangoes imported from other states to meet its domestic demand.

Goa has indigenous varieties of mankurad, musrad (monserratte), fernandina, hilario and others which are usually grown between coconut plantations. "Except for 25-30 farms, there is no continuous plantation of mangoes in the state," he said. 

The department also expects that the mangoes will start arriving in the markets by mid-May as against its traditional appearance in April, annually. Tendulkar said the change in environment cycle has now also forced their production to be delayed. 

Mangoes have been in great demand in the hospitality sector of the state besides the local consumption. The exports from neighbouring Konkan belt helps the state to tide over the demand and control the escalating prices of the fruit.

Press Trust of India

Soybean acreage to rise 8-10% on better realisation

Sharleen D'Souza

The sowing area under soybean, the largest edible oilseed in the country, may rise 8-10 per cent in the ensuing kharif season due to increased confidence of farmers gained from better realisation last year. Overall soybean sowing may set a record at 10.26 million hectares (ha) this year, compared to 9.33 million ha last year.

Rajesh Agrawal, spokesperson of the Indore-based Soybean Processors’ Association, forecasts acreage to remain high as farmers in major growing regions — Maharashtra, Rajasthan, Tamil Nadu and Andhra Pradesh — are keen to bring additional area under the oilseed. The scenario in Madhya Pradesh is also set to remain positive, albeit marginally. Madhya Pradesh is the largest grower of soybean in the country.

The increase would translate into proportionate growth in output, thereby, providing relief to the domestic crushing industry. Oilseed crushing mills have been operating at lower than capacity levels for the past few years due to negative parity. Apparently, higher production of oilseeds like soybean will intensify crushing in domestic markets. As a consequence, the output of soybean oil will increase, reducing reliance on imports. India imports 55-60 per cent of its vegetable oils, largely palm oil, for blending with soybean, sunflower and other oils, from major world producers, such as Indonesia, Argentina and Malaysia. Total soybean output was recorded at 10.5 million tonnes last year.

B V Mehta, executive director of Mumbai-based Solvent Extractors Association, said, “Farmers received good returns last year, which will definitely lure them to bring additional area under soybean.” Soybean price for near-month delivery on the National Commodity & Derivatives Exchange rose 43 per cent in the past year from Rs 2,444 a quintal to the current Rs 3,506 a quintal.

Soybean is sown with the onset of monsoon in June till July. The harvesting starts in October and continues till December.

Business Standard

India: Majestic mango prices dissuade consumption

Mangoes, the so called king of fruit, is currently being ruled out by a lot of consumers, as the price has risen to one that only a king could afford. 

The trademark Goan mancurado tops the list of the unattainable at Rs 1,500 ($29 US) per dozen, while its Maharashtrian cousin Alphonso is only slightly less exclusive at Rs 800 per dozen. Goan shoppers, who decided to give in to the golden fruit's temptation, went for the nameless local varieties priced at Rs 400 per dozen. The ever-blushing Goan maldes mango with its rosy hue cost its takers, if any, Rs 550 per dozen.

"There are no buyers for the mangoes. They are more expensive than ever. There is no possibility of the prices coming down much either. Earlier, the mango season used to extend till end of May, now with all the trees being replaced by buildings where are the trees for mangoes to grow? Where is the time for the prices to come down?" said one vendor Subhadhra Govekar, who travels six kilometers from Corlim to sell her locally grown fruits at Panaji.

"Buyers prefer apples, oranges or grapes. No one wants to buy a mango when they hear the price. So I have not stocked any," said trader Rashid Sheikh.

The king of mangoes - the mancurado - has not made an appearance yet in the Ponda market at all, because of its price.

"We are selling cheaper varieties brought from outside the state. In Ponda, some nameless varieties are on sale. These lesser known varieties have a better chance of being sold as it's the mango season and these are more affordable for buyers," a vendor in the Ponda market said.

Times of India

Good price for hybrid chili brings cheer to growers

Shanivarasanthe

Deccan Herald

The hybird chilli growers in Shanivarasanthe are in a cheerful mood as the price of the crop has seen steady increase in the last few months. 

With the steep fall in the price for green chillies last year, the farmers opted for growing hybrid green chillies this year. 

The farmers in Shanivarasanthe hobli and Hassan have grown hybrid chillies. With the good price, the interest among the farmers have increased. Farmers are growing the chilly for ‘Global Green Company’ of Bangalore. The farmers send hybrid green chillies grown by them to Bangalore. 

Hybrid chilly can be grown within 90 days. The harvest can be taken up three months in a year. The plants are given to the farmers from nursery by the Global Green company. “The company provides 12,000 saplings for one acre land. The farmers have to pay Rs 1.20 for each sapling. The field officers and supervisors visit the farm often and give suggestions to the farmers.”

Koojageri progressive farmer K T Harish said “the sapling given by the company this year is not as good as the one given last year. It is a small variety. Few plants have been affected with diseases.” 

The labourers who harvest the chilly should be paid a sum of Rs 150. Soon after the harvest, the company sends its vehicle for transporting it to Bangalore. Cheques are issued to the farmers through Raitha Samparka Kendra. 

One hybrid chilly weighs 50 gram. One kg of chilly fetches Rs 11. Those chillies which are spicy are used for preparing pickles. Majority of the hybrid chillies are exported via Bangalore. 

“One will get good yield if the plant is waterered and fertilisers are applied regularly. I have been growing hybrid chilly for the last two years. If the chilly fetches Rs 15 to Rs 20, then it would be helpful to the farmers,” said Prasanna and K T Harish

Pune: Cooperatives left with 300,000 litres of surplus milk everyday

Cooperative milk federations in Pune division, comprising Pune, Satara, Sangli, Solapur and Kolhapur, have had a surplus of nearly three lakh litres of milk every day since January-end.

Milk powder producers have stopped or cut down the purchase of milk from the federations. The ban on the export of milk powder imposed by the state government and a fall in local demand are reasons.

Dairy industry sources said the surplus was being sold to other states or milk powder producers at lesser rates. It had cascaded into losses for dairy cooperatives in the state, they added.

Milk-powder factories have huge stocks with only a few takers, M A Muqtadir, regional dairy development officer, Pune, said.

"In March, the federations in Pune division procured nearly 30 lakh litres of milk per day, of which three lakh litre was in surplus," Muqtadir said. In Pune district, the surplus was pegged at 1.42 lakh litres.

The average daily handling/procurement of milk per day by the cooperative sector in Pune district during March 2012 was 4.56 lakh litres, Satara (1.12 lakh litres), Sangli (6.06 lakh litres), Solapur (4.69 lakh litres), and Kolhapur (12.89 lakh litres). Private sector dairies in the division procured over 38 lakh litres of milk per day in the same period.

Muqtadir said that the ban on milk powder export last February has led to a surplus of milk as well as milk powder. "As they have been saddled with huge stocks of milk powder, factories in the state are currently converting only 50 to 60% of the milk into powder. Nearly 40% of milk is surplus."

The state government has announced a subsidy of Rs 2 per litre for conversion of excess milk into milk powder, he added.

The 14 private milk powder plants in Pune division before January 2012 bought 40 lakh litres of milk per day. "They catered to the local market till January 2012, but demand for milk powder in the local market has fallen drastically this year and factories have huge stocks of milk powder," Muqtadir said.

Muqtadir said, "Last year, because of a shortfall in milk production in the state, there was a good demand for milk powder in the local market. But this year, milk production has improved, leading to a fall in demand for milk powder."

Vivek Kshirsagar, managing director of Katraj dairy, said that they had surplus of 30,000 litres of milk per day. "We have stopped buying milk from some private producers. But we continue to buy from farmers as we cannot let them run into losses," he said.

Of the 64,000 litre procurement, Doodh Ganga dairy in Indapur has had a 14,000 litre surplus for the last two months, dairy manager B N Ligade, said. "The surplus is sold at lesser rates to milk powder factories. We would get around Rs 3 per litre above the purchase price at which we buy milk from the farmers to compensate our overhead charges on procurement, processing and marketing. For the past two months, milk powder producers compensate only half of these overhead charges. They pay Rs 1.50 per litre on our purchase price," he said.

Dashrat Mane of the Sonai Dairy in Indapur, also a milk powder producer, said that the dairy has about 2,000 tonne of unused milk powder. "We have not stopped buying milk, but reduced the purchases by 10-15%. Though exports were banned last year, there was a huge demand for milk powder in the domestic market in 2011," he added.

Times of India

Tea to be declared India''s national drink

Tea will be declared India's national drink in 2013 to commemorate the anniversary of the birth of a tea planter hanged by British colonial rulers for taking part in a rebellion, news reports said Sunday.

The decision was announced by Planning Commission deputy chairman Montek Singh Ahluwalia Saturday at a function of a tea planters' association in Jorhat in the north-eastern Indian state of Assam, the Asian Age newspaper reported.

India is second only to China in both the production and consumption of tea.

The country's largest tea gardens are in the north-eastern states.

Ahluwali said tea would be accorded the special status by April 17 2013 to coincide with the 212th anniversary of Assam's first tea planter, Maniram Dutta Barua, known as Maniram Dewan.

Dewan was hanged by the British in Jorhat after he joined the rebellion of 1857 led by some Indian soldiers in the British army.

Deutsche Presse-Agentur

Rajasthan's bonus for wheat attracts Punjab farmers too

Sukhbir Singh Khairon, a farmer in Punjab's Azimgarh village, is frequently visiting his relative Bhag Singh in the neighbouring Hanumangarh district in Rajasthan. 

Every time, he unloads quintals of wheat in Bhag Singh's backyard before returning to ferry more grain. 

Khairon wants to sell the grain through his relative in Rajasthan which can help him earn a bonus of Rs 100 per quintal that the Rajasthan government has announced on the purchase over and above the minimum support price of Rs 1,285 a quintal. 

He is not the lone farmer from this region bordering Rajasthan who has been sneaking into Rajasthan to sell wheat and pocket the extra buck which Punjab is not offering. 

The bonus has attracted farmers in a big way and speeded up procurement in Rajasthan. The state government has made a budgetary allocation of Rs 150 crore for the payment of bonus. Government agencies in Rajasthan have bought close to 2 lakh tonne wheat, which is 10% of the total target. In Punjab, procurement stands at 4.04 lakh tonne, down by more than half compared to the corresponding period in the previous year. Haryana, another major wheat-producing state, has done purchases of around 20 lakh tonne. 

The Rajasthan government is aware that the bonus scheme, launched to support farmers in the state, has attracted beneficiaries out of the state as well. 

Milk suppliers observe daylong hunger strike over unfair pricing by private companies

Milk suppliers from across north India observed a day long hunger strike on Saturday to protest unfair pricing by private companies supplying milk and dairy products.

Mohan Singh Ahluwalia, a representative of dairy farmers, accused that central government of working in tandem with the private firms and hence, they are hesitating in taking action against them.

"Government is also involved with private companies in dairy scam worth 1.25 lakh core rupees. That is why till today the government had not issued any statement and has not submitted any investigation report," said Ahluwalia.

Hundreds of angry dairy farmers assembled at the Jantar Mantar and shouted anti government slogans, spilling milk on the roads to demonstrate their discontent.

Ahluwalia urged government to come out in their support and demanded that the companies should compensate them for the loss incurred by them and ensure that the milk is directly sold to the consumers.

"Middle men have been selling milk, which is adulterated with urea, dap, caustic soda to these private companies and that is sold to the consumers. If Delhi state government or central government is honest then they should provide farmers with milk Mandi in Delhi. If something like this happens, we can stop this inflation right now and the milk which is being sold at 40 rupees per litre, we will sell that at 34 rupees per litre," added Ahluwalia.

The protestors also slammed that country's dairy major Amul, which recently hiked the price of milk by rupees 2 per litre.

"We get 18 rupees per litre and that milk is sold at 40-45 rupees per litre despite being adulterated. It is very unfortunate that middlemen take away our share of money in the process. 

We are hopeful that government will understand us. Why do they not purchase milk at the rate of 40 rupees per litre directly from us. We are not able to recover our investment cost even when we are the ones who work so hard work. We spend 500 rupees per quintal on fodder to feed the cows and thousands of rupees in maintaining them," said Shahbuddin, a protestor.

On Wednesday, the milk suppliers had faxed a letter to Prime Minister Dr. Manmohan Singh about the huge wealth amassed by private companies and complained that they were not adequately compensated by them.

They also mentioned that the private milk companies sold the milk at an increased price and they bought it from them at a much lower price.

The protestors have threatened to further intensify their agitation if the government failed to address their problems and they would launch a protest march towards the parliament on April 25.

ANI

Indian Mangoes

Goat farming to add to their income

KOIDA(SUNDARGARH): Forced by declining returns from farming in ecologically fragile areas and virtually no regular labour-intensive jobs, several villagers have been taking to goat farming -- goatery. Goats ensure income to nearly 25 families of Bahamba village in Koida block.

For these extremely poor families in the Maoist-infested block it was a modest beginning to make ends meet with the help of Barsuan Iron Mines (BIM) of SAIL.

Around 30 BPL households in the remote village, located about 100 km from Rourkela, took up goat farming only recently amid virtually no job opportunities, little farmland and deteriorating soil fertility. Primarily daily wage earners, they failed to get work under various government welfare schemes too which forced them to opt for goat farming.

One of the beneficiaries and ward member Maghu Naik said after a fall in mininwg activities and low agriculture productivity they are assured of at least some earning. Other villagers Siba Naik, Nirasa Naik and Bira Naik also echoed similar views. The beneficiaries were covered under the Income Generation Schemes of BIM to boost their family earnings, said BIM General Manager H Bara. Each of the families was supplied with two goats of good ‘Black Bengal Breed’ and the village head was given two rams to ensure mating.

SAIL authorities took help of Chief District Veterinary Officer (CDVO) Nalini Dasmohapatra in procuring the livestock from Balishankara block. The goats are capable of breeding twice in 13 months, said Nalini adding that the goats had been immunised for a year and the process would be followed again.

Koida BDO Parikshit Sethi hoped that the effort would enhance the financial condition of the poor villagers to a great extent. BIM Welfare Officer PK Das hoped that in 13 months each family would have nine or 10 goats and the number would continue to multiply.

IBN Live

India's monsoon and impact on economy

By Ratnajyoti Dutta

NEW DELHI

(Reuters) - India's monsoon rains are likely to be within long-term averages in 2012, the weather office head said on Monday, reassuring farmers ahead of next week's official forecast from New Delhi.

Global weather experts will gather in Pune on Thursday to assess the outlook for the overall south Asian monsoon at a meeting seen as a precursor to the official India prediction.

The June to September rains are crucial for India with 60 percent of its arable land dependent on them.

With the end of the La Nina weather pattern, associated with heavy rains in south Asia, and its opposite El Nino unlikely to start until August when much sowing is completed, neutral conditions are seen in India for the crucial first half of the season, a weather expert said on Wednesday.

"Normal rains are likely this year as the La Nina ended and has entered a neutral phase which is expected to continue till August," said D. R. Sikka, former director of the Pune-based Indian Institute of Tropical Meteorology.

India has had two consecutive years of monsoon rainfall within long-term averages after 2009's worst drought since 1972.

CLASSIFICATION

A normal or average monsoon means rainfall between 96-104 percent of a 50-year average of 89 centimetres in total during a four-month season from June, according to the India's weather office classification.

Maharsshtra invites companies for projects in agri-development

PUNE: The Maharashtra government has invited corporates to propose integrated agricultural development (PPP-IAD) projects through public-private partnership. IDBI Capital has come forward to provide funding for the PPP-IAD projects.

The department of agriculture and marketing, headed by minister Radhakrishna Vikhe Patil, had invited corporates for an investors meet organised in Pune on Sunday to promote private investment in agriculture through the PPP mode.

"The government wants to invest more than Rs 2,000 crore of public money available under various government schemes in the agriculture sector, under the guidance of the private sector, for development of backward linkages in the projects they propose. The corporates will have complete flexibility to design the project provided that it covers all aspects from production to marketing," said Sudhir Kumar Goyal, principal secretary agriculture.

The government investment will be restricted to 50% of the overall per-farmer investment proposed, with a ceiling of $1,000 per farmer through the project cycle.

The government has designated the commissioner (agriculture) as the single-window system for providing the assistance. The state government has set up a state-level sanctioning committee chaired by the chief secretary to supervise this project.

The government expects that the approximate budget required to cover one million farmers during the next five years under PPP-IAD will be $1billion. This will be made available through convergence of various schemes.

The government has already appointed Deloitte as transaction advisory for two Integrated Value Chain (IVC) projects of the 15-20 proposed IVC projects. The project cost of the IVCs proposed for the Nashik region and the Aurangabad-Amravati regsion is Rs 76.7 crore and Rs 28.1 crore respectively. While the private players will have to invest 60% of the project cost, 40% money will be available as government grant. Land will be provided by the Maharashtra Agricultural Marketing Board (MSAMB). It has already acquired more than 16 ha land for the two IVCs.

Economic Times

India Times

Cotton - Current Scenario in India

Tamil Nadu: Farmers' festival to give a boost to agriculture

After restoring the tradition of celebrating the Tamil New year on the first of Chithirai, the AIADMK government is now planning a massive farmers' festival this year to give a boost to agriculture.

The previous DMK regime celebrated the Tamil New Year on the first day of the month of Thai. The present government scrapped the law in this regard.

Making a suo motu statement in the Assembly on Tuesday, Chief Minister Jayalalithaa said that beginning April 13, the Tamil New Year's Day, the government would organise Farmers' Grand Festival in all 16,564 revenue villages. A feast would mark the occasion.

“While providing exposure to farmers on the challenges of modern agriculture, the festival will prepare them to become experts in their field. Thus, it will pave the way for a second green revolution in the State,” she said, amid the thumping of desk by the treasury benches.

Ms. Jayalalithaa said that the festival would be organised in the form of awareness camps where information on the work of all departments and benefits of all schemes would be made available to farmers.

The Agriculture Department had created a software on Information Technology-dependent crop management scheme to ensure that new crop varieties and technology reached farmers without delay.

Besides officials from the departments of agriculture, horticulture, agricultural marketing, agricultural engineering, animal husbandry, fisheries and dairy development, scientists from Tamil Nadu Agricultural University, Tamil Nadu Veterinary and Animal Husbandry University and representatives of primary agricultural cooperative banks and other service banks would be involved in the camps. It would follow the approach of a mobile extension centre.

“Officials and scientists will visit every revenue village along with input distributors and inform the farmers about crops suited to their village, technology and integrated farming methods including cattle rearing, sericulture, agro-forestry and fisheries. Solutions to the problems related to the local farms will be found in the camps,” she said.

The government would provide information to the farmers through cultural events such as therukoothu, drama, folk song and dance during the festival. Besides organising small exhibitions and demonstrations and distributing technological guides and booklets and inputs, meetings with experts, agricultural inputs distributors would also be arranged.

The Chief Minister said as agriculture was facing manpower crisis owing to the migration of farm labourers from villages to urban areas, her government had introduced the mechanisation of farm activities in a big way.

“We have given Rs.80 crore as grant to 400 primary agricultural cooperative societies (Rs.20 lakh each) for purchase of machines. Farmers can hire these machines at a nominal rate and produce more food even in small areas.”

The government is providing 100 per cent subsidy to small and medium farmers utilising micro-irrigation and 75 per cent subsidy to others. “The government has also ordered construction of godowns so that farmers can keep their produce till they get a better price.”

Karnataka Inter-state fodder transport banned

MYSORE: In the wake of the prevailing drought situation in the state, Chief Minister D V Sadananda Gowda has banned the transportation of fodder to neighbouring states.

Presiding over a meeting to review drought relief works here on Saturday, he directed the police to strengthen check posts in this regard.

“The government has released Rs 49 crore - including Rs 30 lakh to all taluks each to dig borewells - to tackle the water scarcity through a task force set up in the taluk levels,” he said.

Gowda added that the task force must meet mandatorily every month to monitor the situation and ensure that taluk level officers visit panchayats, while warning of action against those officers not responding to public complaints.

He also directed that the outbreak of epidemic diseases such as H1N1, of which cases tested positive in Bangalore and Mysore, be handled expediently.

Hunsur MLA H P Manjunath and H D Kote MLA Chikkanna, who were also present, appealed to the CM to consider their constituencies as drought-hit and sanction funds for relief works.

They added that the district needs 30,922 bags of seeds and manure for sowing during kharif season.

JUSCO Criticised Meanwhile, expressing unhappiness at the handling of water supply in Mysore by JUSCO, the CM said that the task force will be entrusted with water supply in Mysore in two months.

The government has sought a probe report on failure to execute drinking water schemes to 56 villages in Dodda Kavalande hobli in Nanjangud taluk.

IBN Live

India won’t allow extra cotton exports for now: trade minister

NEW DELHI: India will not allow additional cotton exports for the current year ending in September as of now, Trade Minister Anand Sharma said on Monday.


“Until further orders, there will not be fresh registrations,” Sharma said after a panel of ministers met to review cotton exports from India, after the world’s second-largest producer banned shipments of the fibre last month.


Government and trade sources said last month India was unlikely to allow new cotton exports at the ministers’ meet and may not lift the ban at least until July.

India should allow processing of pulses (legumes) for exports

The Indian government should allow at least the processing of imported raw pulses for export markets so that the domestic milling industry occupies the slots now occupied by units located in neighbouring and other countries, said an official of the industry association.

He also said that India should make pulses part of the public distribution system (PDS) so that the farmers get at least the minimum support price (MSP),

"India is the largest importer of pulses and our demand is to allow milling of imported raw pulses for exports. There will be value addition and earning of foreign exchange. Similarly farmers in India do not actively grow pulses due to price vagaries. So our demand is to bring pulses as part of PDS so that the government sources the pulses and the farmers get the minimum support price," Anurag Tulshan, coordinator - Eastern and North Eastern Region of India Pulses and Grains Association, told reporters here Friday.

He said the association is now interacting with the government closely on the issues faced by the sector. However, he agreed that the association is not talking with the governments - at the centre and states - to grow those varieties of pulses where the states enjoy a natural advantage rather than farming several varieties.

Tulshan was here to showcase the proposed four-day 'The 2012 Annual Global Pulses Convention' to be held in Dubai April 21-24 organised by the International Pulse Trade and Industry Confederation (IPTIC).

According to Sudhakar Tomar, honorary chair (communications & sponsorships), IPTIC, the pulses sold in the US and other overseas markets though branded with Indian names are actually processed in countries like Sri Lanka and others.

He said IPTIC is a global body comprising of over 12 national associations and 800 individual organisations engaged in pulses trade from over 50 countries.

Tomar said the global pulses trade size is around $100 billion in terms of value and 60 million tonnes in terms of volume.

"The production is flat/stagnant at 60 million tonnes in the recent times," he added.

According to him, if only the world reduces meat consumption by just 10 percent there will be opportunity to increase pulses production in a major way.

"The annual global meat consumption is around 300 million tonnes, and to feed that cattle population there should be 4.5 billion tonnes of agro crops," he said.

Speaking about the ensuing conference, Tomar said IPTIC expects around 1,000 delegates as compared to 800 who attended the previous year's edition.

He said delegates from over 600 companies from over 50 countries are expected to participate.

Tomar said the Dubai-based IPTIC is also announcing the launch of 2016 as the Year of Pulses in association with the Food and Agriculture Organisation (FAO) and United Nations.

IANS

Manufacturers focusing on smaller tractors

Yuga Chaudhari

DNA

As sales slow down, tractor makers are looking at smaller tractors which are gaining popularity among farmers with smaller land parcels and for specialised use.

Mahindra & Mahindra (M&M), which is already into the small tractor segment (sub-20 horsepower), is looking at a nationwide rollout of its Yuvraj brand of mini tractors by next year. Yuvraj is currently available in eight states. Similarly, Escorts has announced its new range of small tractors, targeted at niche requirements.

M&M sells around 1,000 small tractors a month, while Escorts will initially target a number of 200 units a month and 1,000 units going ahead.

“As Indian farmers get more specialised, they are finding mini tractors more suitable for their kind of requirements. While Mahindra’s Yuvraj tractors are targeted at smaller farms, ours will be more suitable for intra crop kind of a condition, which will be slightly premium compared to Yuvraj. These tractors are 15% more expensive than Yuvraj,” said S Sridhar, CEO, Escorts Agri Machinery.

Despite the slowdown in mid-sized tractors over the last 4-5 months, the industry is expecting an overall growth of around 13% for the curent fiscal. The growth for this fiscal is likely to halve.

“This is the fifth month in a row that we are seeing tractor growth coming down. In February sales fell 10%. The growth has come down majorly due food inflation getting negative. Farmers are not getting good prices on their crops. Hence, we will have to wait and watch the next 3-6 months in order to understand the market scenario,” said Sridhar.

Also, smaller tractors would bring in a new set of customers and open up new opportunities.

Tractors and Farm Equipment Ltd (Tafe) recently announced its entry into application-focused compact tractors in the sub 20HP segment.

“Players will start looking at specialized and niche products in order to offset the current slack in demand in the tractor industry,” said Sridhar.

“With such tractors we are expanding our customer base. We want to bring more farmers into tractorisation. In small farms (2-5 acre), the tractor penetration is just 1% and Yuvraj can cater to such requirements. That’s the kind of transformation M&M is looking at,” said Sanjeev Goyle, senior vice-president marketing & Applitrac, M&M. “So far the demand of such tractors has been good and it opens new and niche markets for us,” he said.