Agrinews: April 2013
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Agrinews: April 2013 A compilation of major news items relating to the overall farm sector and selected commodities covered under the study “Agricultural Outlook and Situation Analysis Reports” Prepared by National Council of Applied Economic Research 11, I.P. Estate New Delhi 110002 i News compiled from Economic Times, Business Standard, Business Line and Financial Express from dated 26.3.13 to 25.4.13. These are partial or full news stories for reference purposes. ii CONTENTS SECTION TITLE PAGE I HIGHLIGHTS 1 II AGRICULTURAL POLICY 3 III RICE 9 IV WHEAT 17 V MAIZE/COARSE GRAINS 33 VI PULSES 36 VII EDIBLE OILS AND OILSEEDS 40 VIII VEGETABLES/ ONION-POTATO-BANANA 47 IX MILK 49 X SUGARCANE/SUGAR 53 XI INPUTS 73 XII OTHER AGRI COMMODITY/NEWS 76 XIII AGRICULTURAL COMMODITY/ FOOD PRICES 87 XIV AGRICULTURAL COMMODITY FUTURES 94 iii a I HIGHLIGHTS Agricultural Policy Organic food may be exempt from farm products’ export ban (BL 26/3/2013) Government to encourage private traders for buying wheat from farmers (ET 3/4/2013) Govt set to review buffer stock norms (ET 11.4.13) Rice Basmati exports up 10% in FY13 (BS 5.4.13) Bihar crosses national average in rice production: Nitish Kumar (ET 24.4.13) Wheat Scientists unlock key genetic code of wheat (BL 26.3.13) India, US to launch joint research collaboration on wheat( ET 9.4.13) Wheat harvest seen at record on high-yield seeds (BS 10.4.13) India likely to export 7.5 MT wheat, says UN body (BS 17.4.13) Wheat exports feasible as global prices firming up: FCI (ET 22.4.13) Pulses World pulses trade meet to look into demand-supply outlook (BL 15.4.13) Edible Oils and Oilseeds Stockists begin building edible oil inventories (BL 2/3/2013) India's vegoil imports down 7.5% (BS 14.4.13) Vegetables/ Onion- Potato It’s a hot potato, thanks to steady demand (BL 29/3/2013) Punjab announces 50% subsidy on diggers for potato plantation(ET 25/4/2013) Milk New Zealand drought fuels boom for Indian dairies (BL 2.4.13) India’s milk pouch model appeals to Europe, Pakistan (ET 22.4.13) Sugarcane/Sugar India's 2013-14 sugar output looks positive: ISO chief ( ET 26.3.12) Sugar mills given free hand to sell open market quota (BL 26/3/2013) Government releases 10.4 million tonne sugar for open market (ET 27/3/2013) Sugar production falls by 2% at 230.5 LT in H1 2012-13 (ET 2/4/2013) Government removes control on sale of sugar in open market (ET 5.4.13) Centre to bear extra PDS sugar subsidy for 2 years: FM (ET 6/4/2013) 1 Sugar producers to benefit from govt-mandated compulsory blending of ethanol with petrol (ET 17/4/2013) Other Agri / Farm News India's agriculture output to be worth 29 lakh crore by 2030: CII-McKinsey report (ET 14.4.13) Branding can propel India among top five farm produce exporters by 2030 (BS 15.4.13) Govt seeks precision in monsoon forecasting by 2017 (ET 17.4.13) Private forecaster Skymet expects normal monsoon this year (ET 18/4/2013) Programme to provide pre-harvest crop estimate (BL 24/4/2013) Agricultural Commodity/ Food Prices Food habit change in rural areas fuelling inflation: RBI (BL 6/4/2013) World food prices rise 1 per cent in March: Food and Agriculture Organisation (ET 12.4.13) Cheaper veggies pull down March inflation to 5.96% (FE 15.4.13) Retail price inflation to remain in double digits in 2013 and 2014: IMF (BS 17.4.13) Agricultural Commodity Futures Prices Commodity markets will be drivers of economic growth’ (BL 3/4/2013) FMC wants exemption for processed farm products from CTT (BL 10/4/2013) 2 II AGRICULTURAL POLICY/ RELATED ISSUES Organic food may be exempt from farm products’ export ban (BL 26/3/2013) The Government may exempt organic products from export ban imposed on farm commodities from time to time to check the spiralling prices in the domestic market. The move, when implemented, is expected to give a boost to exports from the fast- growing sector by making supplies in the overseas market more predictable. The Commerce Department is formulating a proposal for exempting organic products from export ban on the lines of the recent exemption given to processed food and is expected to soon discuss it with other ministries concerned. Organic food is grown without the use of chemical fertilisers and pesticides and is in great demand all over Europe, the US, Australia, Canada, Japan, South Africa and West Asia. Exports of organic products jumped almost three times to touch $360 million in 2011-12 from $130 million in the previous year. “Buyers of our organic products will have more confidence in their suppliers if they know for certain that exports will not stop due to Government intervention. Continuous exports will also encourage farmers to grow more organic food,” the official said. Export of organic food products from the country include basmati rice, pulses, honey, tea, spices, coffee, oil seeds and fruits, according to farm products export body APEDA, Exempting organic produce from export ban would not harm the interest of domestic consumers at the time of shortage of supply in the local markets as it is a minuscule part of total farm exports. Exports of agricultural commodities monitored by APEDA in 2011-12 was a whopping Rs 82,000 crore ($15 billion) compared with organic products exports at Rs 1,800 crore ($360 billion). 3 In January, the Cabinet Committee on Economic Affairs exempted processed food and value-added agricultural produce from export ban. These include wheat of meslin flour, cereal flours, meal pellets and grains, milk products including casein and its products, butter and other fat derivatives from milk and dairy spread, cheese and curd and value added products of onion and peanut butter. “We want the same logic to be extended to organic products. The Commerce Department is preparing a paper on why organic products should be exempted from export ban and it would be discussed with other ministries soon,” the official said. Organic food is gaining ground in many parts of the world. According to US-based environmental research organisation The Worldwatch Institute, which has carried out a study on the growth of global organic agricultural practices, acreage under organic farms has trebled globally since 1999 to 37 million hectares despite a dip in 2009-10. Government to encourage private traders for buying wheat from farmers (ET 3/4/2013) Anticipating huge surge in wheat procurement this year, the government is considering options to encourage private traders to buy the grain directly from farmers, Food Minister K V Thomas said today. "Let the private traders come and procure this time. We are working out a mechanism. We don't want to give signal that we will procure wheat for private parties," Thomas said on the sidelines of CII AGM here. The government is aiming to buy a record 45 million tonnes of wheat in the ongoing 2013-14 marketing year, as against 38 million tonnes last year, he said. "Our wheat requirement is 28-29 million tonnes. I was forced to procure 38 million tonnes wheat last year as private traders did not want to buy at minimum support price (MSP). Although our burden is huge, but we have to procure to ensure MSP to farmers," Thomas explained. Private players had not been buying wheat directly from farmers for last two years due to higher taxes in states like Punjab. Also, they were waiting for the government agency FCI to procure entire wheat and sell later to private traders at lower rates via open market sale scheme (OMSS), he said. Thomas also sought suggestions from the industry chamber CII on ways to encourage private sector in wheat procurement. Allaying fears of storage crisis due to possible huge wheat buy, Thomas said, "It is a huge challenge. We have got enough storage. I am confident that we will manage this year." 4 Wheat procurement will start in fullswing after Baisakhi festival on April 14. So far, FCI has purchased over 5 lakh tonnes of wheat at the support price of Rs 1350 per quintal. As on March 1, the Food Corporation of India (FCI) had foodgrains stocks of 62.8 million tonnes, of which wheat was 27.1 million tonnes. The storage capacity is 74 million tonnes. The government's wheat purchase has been on the rise due to record output in the last two consecutive years. The wheat production this year is also expected to surpass last year's record 94.88 million tonnes. ‘Creating non-farm jobs must for farmers’ (BL 3/4/2013) There is a need to create more non-farm opportunities in rural areas and to facilitate farmers’ migration to those jobs so as to ensure income security for them, Agriculture Secretary Ashish Bahuguna said today. “We are food secured country. We will remain food secured for foreseeable future. But what is not secured is farmers’ income. This we need to address,” he said at CII AGM here. “We should get together and see how we can create non-farm opportunities in rural areas and facilitate migration from agriculture sector,” Bahuguna added. Presently, there is inequity in distribution of wealth among farmers as more than 50 per cent of the population is dependent on farming sector, which contributes only 13 per cent of the country’s gross domestic product (GDP), he said.