No substance in budget's agriculture hype
the Union budget for 2007-08 is big on illusions, small on vision. Despite the hype about its tilt towards the agriculture sector, the budget has failed to put together a package to bail out the
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More miles to go for Chipko women
The Chipko movement halted commercial tree felling in UP's Chamoli district, but the women who led it are still fighting corrupt and indifferent forest officials and fund constraints to maintain the pace of development
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Tackling poverty
civil society in India associates the World Bank with economic growth infrastructure, and fiscal stabilisation. This book to some extent confirms this perception. It argues that economic growth
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Policy drift
Rainfed regions are those where crop production is exclusively dependent upon rainfall. In India they cover 177 districts and exist in all agro-climatic regions but are mostly concentrated in the
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Global Biopact on biofuels can bring benefits to both rich and poor nations
A GLOBAL Biofuels Biopact between rich and poor countries can help alleviate poverty in the developing world while helping to solve the problems of global warming and energy security in the developed world, says a new paper in the journal Biofuels, Bioproducts and Biorefining published by SCI and John Wiley & Sons. According to the paper's author, John Mathews, professor of Strategic Management at Macquarie University, Australia, a Biopact
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Food demand may double in 50 years'
Lead author of the World Development Report-2008, Alain de Janvry, has warned that the global demand for food is expected to double within the next 50 years, while the natural resources that sustain agriculture will become "increasingly scarce, degraded and vulnerable to the impact of climatic changes'. Delivering a lecture on "Agriculture in the contemporary world' here over the week-end, Prof. Alain de Janvry said the agriculture sector not only needed greater investments, but should also be placed at the centre of the planning process to achieve the U.N. Millennium Development Goal of halving extreme poverty and hunger by 2015. The lecture was organised by the Institute of Development Studies (IDS) here. Prof. Alain de Janvry
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UNITED NATIONS
Programmes providing small loans are not effective for reducing poverty, stated a report published by the United Nations Department for Economics and Social Affairs. The micro credit concept has
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Rs 168.8 billion agriculture credit disbursed during 2006-07
During 2006-07, a record disbursement of agricultural credit took place. Against credit allocation of Rs 160 billion, an amount of Rs 168.8 billion was disbursed, which reflects 22.8 percent increase as compared to last year's disbursement. This was disclosed in an Annual Performance Report (2006-07) of Ministry of Food, Agriculture and Livestock (Minfal), which was released recently. According to the report, the Public Sector Development Project (PSDP) of Minfal for the year 2006-07 included 61 projects. Out of which 41 were ongoing and 20 new projects to support policy objectives set at the national level. The original PSDP allocation was Rs 11,800 million. The allocation was revised to Rs 13,600 million after mid year PSDP review. However, from the enhanced revised allocation, Rs 329.5 million was not released to Minfal. Moreover, Rs 852.4 million savings indicated by Minfal for re-appropriation for its mega project, 'National Programme for Improvement of Watercourses' was diverted to other Ministry. As such, the Minfal's allocation was reduced to Rs 12,418.1 million. Out of this amount, Rs 1,741.9 million approved for re-appropriation for different projects by the P&D Division was also not released which were finally surrendered. Thus Rs 10,676.2 million was released to Minfal's project upto June, 2007 and against it, the utilisation was of Rs 10,244.37 million which is 96 percent of the amount released. Minfal report mentioned that the other key achievements of the government, during the year 2006-07, have been signing of agriculture specific MoUs/Agreements/Protocols with friendly countries and of MFN status for agricultural exports with various other countries. A number of Joint Ministerial Commissions (JMC) were set-up relating to agricultural development, and policy-level negotiations were undertaken under the WTO regime as well as Safta. Minfal report revealed that government recognises the role of agricultural growth in boosting overall growth of the economy and reducing poverty. For achieving higher growth in agriculture, priority objectives set by Minfal include enhanced productivity to ensure food security, efficient import substitution and export orientation. Within these broad objectives, the main element is to accelerate growth by narrowing existing yield gaps, promotion of agriculture related business enterprises, provision of quality support services to farmers, and market reforms to increase profitability of agriculture for small farmers. Moreover, attention is being focused on increasing the production of major crops like wheat, cotton, sugarcane, rice and maize through remunerative market-based prices, evolving new high-yielding varieties requiring low inputs through adaptive research, help improving market and storage facilities with public-private nexus, and providing greater access to farmers for optimal technologies and seasonal credit. Such far-reaching objectives require efficient agriculture institutions to effectively respond to growing and diversifying needs of farmers to accelerate productivity and growth at the grassroots. Minfal has initiated several reforms of the agriculture sector institutions to promote decentralisation and liberalisation of agriculture services. For reforming the research system, Pakistan Agricultural Research Council (Parc) is being restructured with more autonomy to the Board of Governors both in formulation of research policy and financial empowerment. Similarly, in agriculture extension, reforms are being conceived to improve research and extension linkages in the backdrop of further decentralising extension services at the union council level. To face the future challenges of policy analysis, APCom's mandate has been redefined to play a meaningful role in the Ministry, priority focusing on agriculture policy issues, monitoring and analysis of international trade agreements for suggesting measures to improve Pakistan agriculture's competitiveness in the global market. To support agribusiness development in the livestock sector, the Prime Minister, in principle, has approved a National Livestock Development Policy. A new market-friendly wheat policy is in place, key elements of which include free wheat marketing, voluntarily selling by farmers at the guaranteed minimum price, and maintaining a clear distinction between operational reserve and strategic reserve by the government. A comprehensive fisheries policy has been prepared and presented to the Prime Minister. In addition to above mentioned policy reforms, Minfal has also undertaken a project for the strengthening of capacity for improvement of agricultural statistics in Pakistan. The objectives of the project are to strengthen the capacity of Provincial Crop Reporting Service (CRS) by providing them motorcycles, vehicles, computers, office equipment, technical equipment and O&M cost for field operations. It will help the CRS in provision of timely agricultural statistics for policy formulation and early warning system. Efforts are underway to augment development component of agriculture through continued supply of financial resources for agriculture sector development to support policy objectives set at the national level. The agriculture sector performed well as compared to the previous year and growth in the agriculture sector bounced back from 1.6 percent in 2005-06 to 5.0 percent in the 2006-07. The major crops registered an impressive growth of 7.6 percent. The minor crops grew by 1.1 percent slightly up from the last year's growth of 0.4 percent. The livestock sector grew by 4.3 percent during 2006-07 as against 7.5 percent in 2005-06. The wheat production of 23.295 million tons during 2006-07 is highest ever in the country's history, registering an increase of 9.5 percent over 2005-06. Sugarcane production improved by 22.6 percent over 2005-06 to 54.7 million tons. Cotton production at 13 million bales remained almost unchanged in comparison to 13.02 million bales in 2005-06. Rice production at 5.4 million tons was marginally lower than 5.5 million tons produced in 2005-06. The major factors responsible for increased agricultural production are, agricultural credit availability, support/intervention prices, government policy of encouraging use of the balanced fertiliser by granting subsidy on phosphatic and potashic fertilisers, increased irrigation water availability and favourable weather conditions particularly during Rabi season. Within crop sector, import substitution and crop diversification are two important development priorities of Minfal. Efforts are being made to maximise oilseed production, such as sunflower and canola etc to substitute imports of edible oil to save foreign exchange. Like-wise under crop diversification programme, government has planned to introduce high value crops to diversify production and to enhance net farm income. The milk and meat production touched the level of 33.2 and 2.6 million tons respectively in 2006-07. It implies 6.2 and 6.6 percent higher production. Fish production was 0.6 million tons ie 3.6 percent higher than in 2005-06. Growth in the targets for milk and meat production and livestock productivity are aligned with Medium Term Development Frame Work (MTDF), which aims to grow by to 6-8 percent annually. Government has provided Rs 100 million for launching 'Grow More Wheat Campaign 2006-2007'. Under the campaign wheat production technologies are being disseminated to the farming community through agriculture extension services in the provinces. Copyright Business Recorder, 2008
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Protests against unfair land allotment in Rajasthan
the Udaipur administration recently announced its plans to go ahead with allotment of land for jatropha plantation. The move, made under the recently notified Rajasthan Land Revenue (Allotment of
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Solutions at a click
Computers pave the way for sustainable agricultural and rural development in five Pondicherry villages
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The biotech brigands
Developed nations are interpreting key clauses of the biodiversity treaty with the aim of protecting their own biotechnology industries from potential flak
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Is social sector revenue or capital expenditure?
THE centre's commitment to targets stipulated by the Fiscal Responsibility and Budget Management Act, 2003, threatens to set it on a collision course with states. The matter at hand is funding social
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Bangladesh State of Environment Report: The Monthly Overview, November, 2013
<p><strong>Bangladesh has approved the commercial cultivation of transgenic Bt brinjal, becoming the first country in South Asia to cultivate the genetically modified food crop. Read more in this November 2013 edition of the Monthly Bangladesh State of the Environment Report published by the South Asia Environment Portal. Read and Share.</strong></p>
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A clean argument
Local communities in wildlife management
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Clothing the drylands
A pod protecting seeds may be all it takes to make deserts green
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Habitat crunch
Marauding elephants face villagers vendetta
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Will Indian generosity help Africa?
The two-day Africa summit in New Delhi last month opened a significant chapter in India's external affairs. Inaugurating the summit, attended by 14 African leaders, Prime Minister Manmohan Singh
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Will loan waiver address farm distress?
It will provide only short-term relief THERE arefour crore small and marginal farmers who are unable to repay their crop loans to the banks. The Rs 60,000-crore budgetary allocation for waiving their loans will now enable a farmer to go back to the same bank, apply for another loan and await either of these two outcomes: a good crop or another loan waiver. While the gesture provides farmers relief in the short term, it would be harmful for the economy, especially the farm economy, in the long run. If we take the risk versus reward incentive out of an economic activity such as agribusiness, the enterprise quotient diminishes and hinders both growth and innovation.These key attributes, along with structural reforms and investment in agri-infrastructure, are needed to raise agricultural productivity and maintain the growth trajectory of the economy. The question we need to ask ourselves is why these farmers have not been able to repay their crop loans. Can Rs 15,000-per-farmer reward help them produce a better crop in the next season? The answer sadly is No. Small farmers face two main challenges: meeting their input needs (seeds, pesticides) and dealing with the weather risks to their crops. Issuance of input coupons for purchase of quality inputs for the next season would have been more beneficial. Bad weather plays havoc with agriculture. Dealing with weather risk calls for appropriate risk management tools such as weather insurance. This requires a network of weather stations at the block level for timely collation of data, a basic requirement for weather insurance products. Establishing a network of weather stations would have required only a fraction of the Rs 60,000 crore outlay. The budget will definitely encourage the creation of rural enterprises such as nurseries and cold chain establishment. The one-time budgetary assistance of Rs 75 crore for setting up mobile soil testing facilities is also a good step. However, the provision of Rs 60,000 crore for loan waiver which can at best provide short-term relief to farmers has robbed them of possible agri-infrastructure projects such as roads, marketing and storage facilities, and irrigation which could have yielded better returns on a sustainable basis. (*Country Head, Food & Agribusiness Strategic Advisory & Research) RAKESH TIKAIT Spokesman, Bhartiya Kissan Union It will not solve the deepening agri crisis THE Union budget 2008-09 is prima facie a pro-farmer budget, with the primary emphasis on writing off the loans of small and marginal farmers. It is a good step to provide instant relief to farmers who are heavily indebted, although it covers only 40% of total farmers. However, the debt relief will not solve the deepening agrarian distress. Nevertheless, we see the announcement of debt waiver as a victory of farmers' union, activists and pro-farmer media. It was a great battle and we are grateful that the finance minister took this step despite corporate pressure. We believe that this measure alone is not enough to address the farmers' problems. It is well known that the basic problem faced by farmers is their inability to get fair price for their produce. The policy makers have said nothing on this count. Nothing has also been said about ensuring better farm gate price for agriculture commodities or making available a price stabilisation fund to help farmers increase their income. The price offered for the commodities produced by them must not only fully cover their cost of production but also ensure livelihood security. Subsidy is another area of concern. Traders and producers are currently getting all the benefits while farmers have to suffer due to scarcity of fertiliser. The budget has also not made any announcement to strengthen the extension services of the ministry of agriculture to make it more relevant for the farmers. As a result, farmers are forced to depend on agents of pesticide and seed companies for technical advice. It seems that the government has made up its mind to hand over this system to the corporate sector. In this context, we are closely watching the Indo-US knowledge agreement and the multinational companies in seed business. In conclusion, although the budget is pro-farmer, the actual need of the Indian farmer is not just the removal of debt and interest. Many other important issues need to be addressed. These include access to market, fair price for produce, timely availability of fertilisers and seeds, direct subsidy and the public sector investment in agriculture business. We hope the government will consider all this in future. And the main need is to keep corporates far from farming business. K CHAKRAVARTHY Country Head* YES BANK
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No free lunches in India
It seems that the people who matter in this country have a simple enough formula for life and liberty. We should open up the market, create opportunity for the organised industry, mix and stir, and