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Agrinews: July 2013

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Agrinews: July 2013 AgriNews: July 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 (Coverage from June 26, 2013 to July 25, 2013) i ii CONTENTS Section Title Page No. 1 Highlights 1 2 Broad Sectoral Trends 5 3 Agricultural Policy 7 4 Rice 23 5 Wheat 33 6 Maize /Coarse cereals 43 7 Pulses 45 8 Edible Oils / Oilseeds 51 9 Milk 57 10 Vegetables – Potato/ Onoins 65 11 Sugarcane / Sugar 73 12 Inputs 79 13 Other Agri / Farm News 87 14 Agricultural / Food Prices 109 15 Agricultural Futures Prices 111 Note: Newspapers covered: BL= Business Line, BS = Business Standard, ET= Economic Times, FE= Financial Express iii iv HIGHLIGHTS Broad Sectoral Trends Indian economy seeing signs of upward momentum: OECD (ET 8.7.13) Plan panel may cut 12th Plan growth target to 7% from 8% (FE 15.7.13) Agricultural Policy Higher MSP to fuel food inflation: Experts (ET 28/6/2013) Food Bill: Govt takes ordinance route; Opposition cries foul (BL 03/7/2013) Food Ministry in favour of 7.5 per cent import duty on pulses (ET 8.7.13) Govt notifies sugar import duty hike to 15% from 10% (ET 9.7.13) President asks ICAR to bring clarity on safety concerns of GM crops (ET 17.7.13) WTO to discuss India’s proposal to hike food subsidy limits (BL 18/7/2013) Maharashtra mulls new sugarcane Act (BS 19.7.13) Government may release food grains stock to tame inflation: KV Thomas (ET 22.7.13) Put genetically-modified crop trials on hold for now: Supreme Court Panel (ET 23.7.13) Rice Iraq keen on sourcing basmati from India (FE 4.7.13) Mauritius gives nod for India’s basmati certification mechanism (ET 05/7/2013) Basmati seed at 100% premium over procurement price (BS 9.7.13) Weak rains cloud paddy outlook for eastern region (ET 23/7/2013) Wheat FCI exports 4.19 mn tonnes wheat; to earn over Rs 7,000 crore (ET 27.6.13) Wheat procurement lower by one-third so far this market year (ET 27.6.13) FCI to sell 9.5mt wheat to bulk users in open market (ET 9.7.13) Indian wheat loses to cheaper Black Sea produce (BL 16/7/2013) Govt scales down 2012-13 wheat output estimate by 2.55% (BS 23.7.13) 1 Maize/Coarse Grains Punjab government announces 75% subsidy on maize seeds (ET 5.7.13) Maize prices up despite higher sowing (BS 10.7.13) Pulses CACP aims at boosting domestic pulses output by imposing 10% import duty (ET 03 .7.13) Pulses trade against duty on imports (BL 03/7/2013) India produces record pulses in 2012-13; Foodgrains output down (ET 22/7/2013) Edible Oils and Oilseeds Refined palm oil imports drop 21% in June (ET 15.7.13) Vegetable oil imports up 21% in June (BS 15.7.13) Milk Milk prices up on rising input cost (BS 1.7.13) Indian dairy firms eye Southeast Asia (BS 11.7.13) Vegetables/ Onion /Potato Vegetable prices rise 50 per cent owing to bad weather (ET 26.6.13) Onion tops Rs 2,000/quintal on supply shortfall (BL 12/7/2013) Onion prices more than double to Rs 36-40/kg in metros (ET 23/7/2013) Sugar India signs 75,000 tonnes sugar export deals for July : Dealers (ET 1.7.13) Maharashtra drought to hit sugarcane production (BS 10.7.13) Sugar output may drop 5.2% in 2013-14 on dry spells, says Isma (FE 10.7.13) A weak rupee and Ramzan-triggered higher demand boast sugar exports (ET 17/7/2013) Inputs MNCs going all out to push new-gen pesticides (BL 27/6/2013) Gujrat organic farmers to develop seed banks to take on GM seeds (ET 01/7/2013) Imported urea cost come down by around 20% in Q1 of 2013-14(BS 25.7.13) 2 Other Commodities/News Monsoon: The best June in 12 years (BL 02/07/2013) Record rains in June aids power, agricultural output (ET 2/7/2013) Kharif sowing soars on timely, widespread rain (BL 05/7/2013) GLobal cereal output to reach all time high in 2013: UNFAO (BL 11/10/2013) Poor investment blamed for fall in agri growth rate (BL 17/7/2013) Skymet predicts below-normal rainfall in north after July 24 (ET 19.7.13) Agricultural Commodity Prices Minimum support price of kharif crops raised by CCEA (ET 28/6/2013) June retail inflation at 9.87% on pricey veggies (FE 14.7.13) Inflation rises to 4.86% in June, onion prices shoot up by 114% (FE 16.7.13) Food prices won't decline despite normal monsoons, say experts (BL 23/7/2013) Agricultural Commodity Futures Prices Edible oils flat on thin trade, bearish futures (BL 01/7/2013) Potato up 1.2% on pick-up in spot demand; tight supply (BS 2.7.13) Chana futures down 1.2% on better rains (BS 2.7.13) Edible oils flare up on hopes of higher demand (BL 5/7/2013) Sugar drops on weak world market, ample supplies (ET 17/7/2013) 3 4 BROAD SECTORAL TRENDS Indian economy seeing signs of upward momentum: OECD (ET 8.7.13) Indian economy is seeing signs of upward momentum helped by gradual reduction of inflationary pressure, according to Paris-based think tank OECD. Indian economy is seeing signs of upward momentum helped by gradual reduction of inflationary pressure though the country's growth still remains "relatively weak", according to Paris-based think tank OECD. In most of the developed countries, growth prospects are expected to witness moderate improvements, the Organisation for Economic Co-operation and Development (OECD) said. The conclusions are based on Composite Leading Indicators that are designed to anticipate turning points in economic activities. "The CLIs for the United Kingdom, Canada and China point to growth close to trend rates and the CLI for India points to a tentative upward change in momentum," the grouping said in a report today. India's growth slowed to a decade-low of five per cent in the last fiscal from 6.2 per cent in the 2010-11 period. The indicators for Russia and Brazil, however, point to slowing momentum, OECD said. India's CLI marginally rose to 97.6 in May. The reading stood at 97.3 in April, March and February. In January, the reading was better at 97.7. In a separate report, OECD, a grouping of mostly developed nations, said the growth in ASEAN economies remains resilient compared to the region's two large economies -- India and China. "Growth momentum in the two large economies is weaker than in ASEAN. India's growth is still not strong, though some positive signs are observed in accordance with a gradual reduction of inflationary pressure. "China also continues to struggle for momentum, partly due to still weak performance of manufacturing," OECD said. These observations are based on data from April-July 2013. In May, OECD had revised downwards the India's growth estimate to 5.3 per cent for 2013 from 5.9 per cent. It had also cautioned that structural bottlenecks could further constrain investment and growth potential. The Wholesale Price Index-based inflation fell to 4.7 per cent in May, driven mainly by decline in prices of manufactured items. Inflation based on the Wholesale Price Index (WPI) stood at 4.89 percent in April. In May, 2012, it was at 7.55 per cent. 5 Meanwhile, the grouping today said that CLIs (in May) for the United States and Japan continue to point to economic growth firming. "In the euro area as a whole, CLI continues to indicate a gain in growth momentum," it added. Plan panel may cut 12th Plan growth target to 7% from 8% (FE 15.7.13) In view of continued economic slowdown, Planning Commission may reset annual average growth rate target to 7 per cent for the 12th Plan (2012-17) in the mid-term review of the five-year policy document. According to sources, the Commission has already started the process of mid-term review of the 12th Five Year Plan and is considering reducing the target as it may not be possible to achieve the targeted 8 per cent growth in view of global and domestic factors. The Commission will take into account the key data on industrial production and exports released by the government on Friday to arrive at a conclusion. In a clear signal that Indian economy is not out of woods, the data revealed contraction in industrial production and exports coupled with near double digit retail inflation. While the Index of Industrial Production (IIP) contracted by 1.6 per cent in May, the lowest factory output in 11 months, the trade figures suggest 4.6 per cent decline in exports in June. The retail inflation inched up to 9.87 per cent in June mainly due to rise in vegetable and fruit prices. As per the CSO's estimates, the Indian economy grew at decade low rate of 5 per cent in the 2012-13, the first year of 12th Five year Plan. Besides, the government is expecting economic growth of around 6.1 to 6.7 per cent this fiscal the second year of the five year policy period.
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