Centre clears sale of 10 mn tonnes of FCI wheat

GARGI PARSAI

The Centre on Thursday approved the sale of 10 million tonnes of wheat in the open

market from Food Corporation of India (FCI) stocks to boost domestic supply, contain

prices and ease pressure on storage.A decision to this effect was taken at a meeting of the

Cabinet Committee on Economic Affairs, chaired by Prime Minister Narendra Modi.The

reserve price for the sale of old stocks of wheat has been fixed at Rs. 1,500 per quintal

while for ―premium‖ new variety it has been set at an additional cost of five per cent,

sources told The Hindu . The minimum support price of wheat is Rs. 1,400 per

quintal.This will be in addition to the freight cost, which will have to be borne by the

bulk purchaser.The grain would be sold through e-tendering process by the FCI. The

purchaser can either buy from the source or can book at the origin point for delivery at a

receiving point after bearing the cost of transportation either by rail or road, the sources

said.Last year, too, about 8.5 million tonnes of wheat was allocated for sale through the

Open Market Sale Scheme. Of this, 6.7 million tonnes was sold.

Kuruvai cultivation on in filter point areas

S. GANESAN

Farmers transplanting nurseries using the mechanised transplanter given away under

kuruvai special package at Ariyur in Tiruchi district on Thursday.— Photo:

B.Velankanni Raj

Of the targeted 8,000 acres, transplantation complete in 7,100 acres

Kuruvai paddy cultivation is under way in the filter point areas of Tiruchi district.Of the

8,000 acres expected to be covered in the district, transplantation has been completed on

about 7,100 acres.Transplantation in the remaining area is expected to be completed

within the end of this month, Agriculture Department officials said.The normal kuruvai

area is 16,000 acres in the district. But given the poor storage in the Mettur reservoir and

delay in release of water in the Cauvery, kuruvai paddy could be raised in only the filter

point areas in the district.The Agriculture Department had completed distribution of

inputs and implements under the kuruvai special package announced by the government

to help farmers take up cultivation with available water. The State government had

allocated Rs. 1.47 crore for the district under the package.The package is implemented in

filter point areas in Andhanallur, Musiri, Manachanallur, and Lalgudi areas. Farmers had

been given fertilisers such as zinc sulphate and gypsum, micro nutrients, liquid bio-

fertilizers, transplanters and weeders at full subsidy.About 25 tonnes micro nutrients, 50

tonnes of zinc sulphate, 500 tonnes of gypsum, 32,000 packets of bio fertilizers and 2,800

litres of liquid bio fertilizers have been distributed among 3,590 farmers.This apart, 150

farmers had been given high density polyethylene pipes to help irrigate their fields

without wastage of water.Community nurseries had been raised on 70 acres and so far

nurseries from 65 of them had been transplanted on an area of 5,200 acres adopting

System of Rice Intensification technique. This had benefitted about 2,700 farmers.About

20 mechanised transplanters, each at a cost of Rs. 2 lakh, had been supplied to farmers

groups. Of this, 14 were in Lalgudi block and two each in the other three blocks where

the package is being implemented. These groups would rent out the machines to farmers

at nominal rates.

MP demands wage revision of cashew workers

Kodikunnuil Suresh, MP, has demanded revision of the minimum wages for the two lakh

cashew workers in the State.Mr.Suresh met Chief Minister Oommen Chandy, Industries

Minister P.K.Kunhalikutty and Labour Minister Shibu Baby John and said that the

cashew workers were underpaid and hence their minimum wages should be

revised.Majority of them belonged to the scheduled castes and backward communities

and hence the government should not delay the revision, he said.

Jayakumar: make planning process farmer-centric

K. SANTHOSH

K.Jayakumar, Vice-Chancellor of the Thunchathu Ezhuthachan Malayalam University

and former Chief Secretary, has called for a farmer-centric approach to planning. He was

delivering the ninth K.N. Shyamasundaran Nair Memorial Lecture at the Kerala

Agricultural University here on Thursday.―The planning process and implementation

systems should be overhauled to address farmer distress. Shortcomings in realistic

assessment, need-based planning and time-bound implementation are worsening the

agrarian crisis,‖ he said.He stated that failed schemes were promoted and existing ones

not revised.He cited an inflated ego, lethargy, corruption and ignorance as the reasons for

the public servant antagonising the public. ―More often than not, these elements are

interlinked and work in tandem to deny rightful service to the beneficiary. Several

projects such as Idukki and Kuttanad Packages are examples of the flawed policy. If the

schemes drawn under these packages were allowed to be implemented in toto, traditional

biodiversity treasures would have become fairytales,‖ he said. KAU Director of Research

T.R. Gopalakrishnan presided over the event.College of Horticulture Associate Dean P.

K. Valsalakumary; extension director P.V. Balachandran; and P. S. Geethakutty, head,

Centre for Gender Studies and Farmer Entrepreneurship Development in Agriculture;

Forestry Dean K. Sudhakara; and Comptroller Joy Mathew spoke.

Sugar conference

A two-day sugar conference and sugar expo is scheduled to begin here on Friday. The

two-day conference is being organised by the South Indian Sugarcane and Sugar

Technologists‘ Association (SISSTA), Chennai, at Novotel Hotel here SISSTA secretary

P. Thangamuthu said.

Rs. 500-crore project for drought-prone areas

The West Bengal government has undertaken a Rs 500-crore programme to convert

50,000 hectares of non–arable land into cultivable area in the State‘s four drought-prone

districts — Bankura, Birbhum, Purulia and West Midnapore.The decision was taken by

the Cabinet and an amount of Rs. 500 crore had been cleared for the purpose, State

Parliamentary Affairs and Higher Education Minister Partha Chatterjee said here on

Thursday.The project work would start immediately with a target to make an additional

50,000 hectares of non—arable land fit for agriculture, he said. Besides focusing on

efficient use of arable lands through better crop management technologies in the drought–

prone areas, the programme aimed at environmental protection and restoration of

ecological balance through appropriate natural resource management technologies, Mr.

Chatterjee said. The initiative would minimise the adverse effects of drought on the

production of crops and livestock and productivity of land, water and human resources,

he added.The Cabinet also cleared a project to set up a centre for rehabilitation of

destitute girl children in the State. Chief Minister Mamata Banerjee, who wanted to

upgrade the status of girl children and women, was keen on undertaking the initiative,

Mr. Chatterjee said. – PTI

Efficient, labour-saving machine for harvesting and cleaning turmeric

M. J. PRABU

Among various cash crops, turmeric has a potential market value all through the year

since it is mainly used as a value added product.Erode is a turmeric cultivating hub in

Tamil Nadu and almost all farmers in the region are growing this crop.But the main issue

with this crop is that like paddy, it is labour intensive. A huge labour force is required for

weeding, earthing, fertilizer application, harvesting and polishing.―If not harvested on

time the crop gets affected by fungal infestation. And in many villages today sourcing

manual labour remains a problem. For an acre, about 300 (110 male and 190 female)

labourers are required. In engaging them, a farmer gets drained physically and

economically,‖ says Dr. S. Saravanakumar, Agronomist, Myrada, Gobichettypalayam.

One year idea

While this is the current scenario in the region, a small turmeric farmer Mr. P. Ramaraju,

has developed a machine to harvest the crop on time. He worked on the idea for a year to

design an efficient harvester.―In the past I suffered huge losses because I was not able to

source labour on time. Determined to find a solution I thought of working on a machine

which could harvest the rhizomes so that a large labour would not be required,‖ says Mr.

Ramaraju.Accordingly, he designed a power tiller that requires 13 HP power to run it.

The machine consists of a shaft connected to small diggers, arm and shaker. While

operating this machinery, the diggers pull out the turmeric clumps from the soil and

loosen the earth with the help of the shaker.

Capacity

The field capacity of this harvester was tested in different soil conditions and it was

found that seven hours are required for harvesting one acre of turmeric.However, some

preconditions are required such as the space between the rows must be 1.5 – 2 feet, the

furrows must be lengthy and broad. It is best suited for fields installed with a drip

irrigation system.―Since turmeric is cultivated under a raised bed system, we thought

some refinement is needed in order to deploy this machinery in different types of soil and

methods of cultivation. Based on the farmer‘s feedback, we modified the machine with

some more ideas from the farmer. This intervention has proved the efficiency of the

harvester to the farmers through demonstrations and is documented,‖ says Dr.

Saravanakumar.―It is a labour-saving equipment and requires only one male and 15-20

women labourers to collect the harvested rhizomes from an acre whereas in manual

harvesting 40 pairs of labourers may be required costing Rs.14,000 – 16,000. By using

this harvester one can save upto Rs 7,000 – 9,000 per acre,‖ says Mr. Ramaraju.

One litre of diesel

The machine consumes one litre of diesel an hour which a small farmer can easily afford.

A special attachment also shakes the harvested rhizomes so that the soil on them drops to

the field, leaving the rhizomes clear for collection.The innovator has demonstrated the

performance of his machine in Tamil Nadu, Karnataka and Andhra Pradesh and till date

has been able to sell about 172 harvesters priced at Rs.30,000 each.

Servicing

Like all machines, this harvester also needs to be serviced regularly. Unlike tractors,

machines like these developed by small innovators face servicing problems. But Mr.

Ramaraju has been offering suggestions and also visiting the places to service he

machine.Farmers from Karnataka and Tamil Nadu have visited his farm to know about

the field suitability of the machine. His innovation was recognised by the Indian Council

of Agricultural Research, New Delhi and he was honoured as a ‗Best Farmer Innovator‘

in 2010 during the national farm innovators meet.For more details interested farmers can

contact Mr.P. Ramaraju, Pudhupalayam, Gettisamudram post, Anthiyur Taluk, Erode

district – 638 501, TamilNadu, mobile:9865171790.

New early maturing garlic variety

R. K. SINGH

R. P. GUPTA

Generally garlic varieties developed by different organizations take about 130-270 days

to attain physiological maturity. There is no variety available for growing during Kharif

season having early maturity in India.The National Horticultural Research and

Development Foundation ( NHRDF) has recently identified a new garlic genotype ―G-

389‖ which can be harvested within 72-80 days during Kharif, late Kharif and 85-95 days

in the Rabi season, about 40-50 days earlier than other garlic varieties grown in India.

Yield

The new variety gives an average yield of 6-7 tonnes per hectare with good storage

capacity. The variety is registered with National Bureau of Plant Genetic Resources, New

Delhi.The day length for bulbing is 10-12 hours and it can be grown on a any soil, but

thrives better in fertile, well drained loam soils.About 500-700 kg of planting materials

are required for planting in one hectare. Because of small cloves it is advisable to plant it

at a spacing of 10 x 7.5 cm to get optimum bulb yield. About 25 tonnes of well

decomposed organic manures,100 kg N, 50 kg phosphate and 50 kg potash per hectare

through chemical fertilizers have been recommended.Use of zinc and boron and

application of sulphur at 30-50 kg/ha also helps to improve yield and quality of bulbs.

Drip irrigation can be used for high yield and quality bulbs.

Irrigation

Pendimethalin at 3.5 litre or oxiflurofen (goal) at 2.5 litre/ha + one hand weeding help

control of broad leaves weeds. Irrigation should be stopped 15-20 days before harvesting

as otherwise it can re-sprout and decrease yield.The crop is ready for harvesting when it

turns light yellow or brow and shows signs of drying. Curing is an additional process of

drying to remove excess moisture.(R. K. Singh , Assistant Director (Horticulture) E-mail:

singhrknbpgr@yahoo.com, rks@nhrdf.com Mob: 09881303443 &. R. P. Gupta, Director

E-mail: nhrdf_nsk@sanchrnet.in, Mob: 9850880668, National Horticultural Research and

Development Foundation, Chitegaon Phata, Post-Darna Sangavi, Taluka-Niphad, Nashik,

Maharashtra.)

Govt. mulls use of radiation tech to preserve vegetables

GARGI PARSAI

The government proposes to adopt radiation technology developed by the Bhabha

Atomic Research Centre (BARC) for improving the shelf-life of fruits and vegetables

especially onions, potatoes and tomatoes to address the issue of supply side shortage that

often results in price rise.An inter-ministerial group convened by Transport Minister

Nitin Gadkari on Thursday apprised itself of the technology during a presentation by

BARC scientists. Among those present were Union Food Minister Ramvilas Paswan,

Agriculture Minister Radha Mohan Singh, Food Processing Minister Harsimrat Kaur,

nuclear scientist Anil Kakodkar and BARC Director Shekhar Basu.Later, briefing

journalists, Mr. Paswan said, ―BARC has developed a radioactive technology for

preserving agri-commodities. We had an initial discussion on how this technology can be

used on a large scale in the country to address supply crunch in some vegetables like

onion, potato and tomato.‖Of several suggestions one was that radiation centres should be

set up at the Central Warehousing Corporation and the Food Corporation of India.

Another idea was to set up the centres in top cities.Dr. Kakodkar said the radioactive

technology had been available in the country for some time and already in use in

Maharashtra, though on a small scale.―Safety concerns are taken care of as existing

norms do not permit radiation above a permissible limit,‖ he said.There are about 12

radiation plants set up by private firms for different commodities, but the technology is

not widely used in the country.Food irradiation is a physical process in which food and

farm commodities, in pre-packed form or in bulk, are exposed to controlled radiation

energy to prevent sprouting, delay ripening, kill insects, pests, pathogenic and spoilage

micro-organisms.

Mettur level keeps rising

As Karnataka dams let out more water, the level in the Stanley Reservoir at Mettur went

up by four feet on Thursday.PWD officials said the level increased to 64.02 feet at 8 a.m.

Thursday from 60.89 feet the previous day.The inflow increased from 28,417 cusecs to

28,961 cusecs, pushing the storage up from 25.354 million cubic feet (tmcft) to 27.772

tmcft, against the capacity of 93.470 tmcft.

Flow increases in Biligundulu

Our Krishnagiri Staff Reporter writes:As rains continue in the catchments, the discharge

from the Kabini and other dams in Karnataka increased on Wednesday.Though the flow

came down by 7,000 cusecs on Wednesday evening at Biligundulu in Krishnagiri district,

where the Cauvery enters Tamil Nadu, it went up by midnight and crossed the 31,000-

cusecs mark on Thursday morning.The flow was over 40,000 cusecs in the evening, an

official of the Revenue Department said. Water was flowing knee deep on the pathway to

the Hogenakkal main falls.Officials were monitoring the situation. People were barred

from the falls.

Flood warning

A flood warning was issued for those living along the riverbanks, especially at

Nagamarai and Neruppur in Dharmapuri district.

Water level at Mettur

The water level in the Mettur dam stood at 65.07 feet on Thursday. The inflow was

30,035 cusecs and the discharge 835 cusecs.

Chennai

Chennai - INDIA

Today's Weather

Partly Cloudy

Friday, Jul 25

Max Min

39o | 28

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Rain: 0 Sunrise: 05:52

Humidity: 70 Sunset: 06:38

Wind: normal Barometer: 1005

Tomorrow's Forecast

Partly Cloudy

Saturday, Jul 26 Max Min

37o | 28

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Extended Forecast for a week

Sunday

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Tuesday

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Thursday

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37o | 27

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Airport Weather

Chennai Chennai

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Wind: normal Barometer: 1005

India Loses Up to 2 Mn Tons Foodgrain Production Due to Waterlogging

Government today said up to two million tonnes of foodgrains production get lost every

year in the country due to the problem of waterlogging."A recent study conducted by the

World Bank showed that India loses 1.2 to 2 million tonnes of foodgrains production

every year due to waterlogging," Union Minister for Water Resources Uma Bharti told

Lok Sabha.

Quoting a study conducted by the Central Water Commission, Bharti said out of the total

command area of 88895.62 thousand hectares being served by major and medium

irrigation projects, an area of 1719.279 thousand hectares was waterlogged.

Perennial waterlogging covers 173.15 thousand hectares whereas seasonal waterlogging

covers 1546.13 thousand hectares, she said during Question Hour.

The Minister said the Central government releases assistance to the states against their

proposals for reclaimation of waterlogged areas in irrigation commands covered under

command area development and water management programme and an area of about 78

thousand hectares has been reclaimed by the states under the programme.

Replying to a supplementary question, Bharti said government will try to use the

labourers availing the MGNREGA scheme for the proper utilisation of their work to clear

waterlogged areas.

The Minister said the Central government gives financial assistance up to Rs 25,000 per

hectare to farmers facing the waterlogging problem in their agricultural land with the help

of state governments.

She said in states like Bihar and Uttar Pradesh, the problem of waterlogging is acute and

if the state governments submit proper schemes to solve the problem, the Centre will

provide all assistance.

Where have all the other mangoes gone?

Mangonomics Under the spell of economic laws A MURALITHARAN

An economic explanation to why the best Indian stuff gets sold in the US and not India

The thing you miss the most about India living in the US is the mango season — which

is, of course, now coming to an end.One sorely misses the myriad flavours, smells and

taste of the endless varieties back home. Just the thought of sinking my teeth into a juicy

ripe fruit makes the mouth water!Unfortunately, what passes off as mangoes in the

regular grocery stores here are offerings from South America. These so-called mangoes,

usually of Mexican or Peruvian origin, are flavourless and tasteless; they are simply big,

nothing more.True, you also have the ‗Indian‘ grocery stores where you‘ll most certainly

find boxes of that king of mangoes — the Alphonso. But you won‘t see any other variety.

Anybody wanting to learn about India from what India exports will instantly conclude

that India only produces one mango variety.When I ask store owners here why they only

keep the Alphonso, their stock response is: Alphonso is the king of mangoes, they only

sell the best Indian mangoes, and anyway only the best things from all the countries in

the world get sent to the US!This logic strikes a chord because it matches what I used to

hear growing up in India — we send our ‗best‘ products abroad and sell only the export

rejects or factory ‗seconds‘ in the streets of Janpath.

The third law Much as one wouldn‘t like this state of affairs, it is quite often the case that the best

products from any place are shipped out elsewhere.A simple economic explanation for

this was put forth by Armen Alchian and William R Allen in their classic 1967

textbook University Economics. It is sometimes referred to as the third law of demand.To

understand it, assume there are only two kinds of mangoes — high-quality (like our

Alphonso) and low-quality (name your least favourite Indian mango variety). For the

sake of simplicity, let‘s take the latter to cost ₹30 per kg and the former ₹300 in India.

Simply put, one kg of high-quality mangoes is equivalent to 10 kg of low-quality

mangoes.Now, suppose it costs ₹60 to send a kg of mangoes regardless of their quality to

the US. In the event, a kg of high-quality mangoes will cost ₹360 in the US, while being

₹90 for low-quality mangoes. Thus, in the US, a kg of high-quality mangoes works out

the equivalent of only four kg of low-quality mangoes.Relatively speaking then — when

denominated in low-cost mangoes — high-quality mangoes are cheaper in the US than

they are in India. It is natural, therefore, to expect American consumers to demand high-

quality mangoes, since their cost in terms of low-cost mangoes is lower than what it is for

consumers in India.Keeping the above logic in mind, mango sellers will want to ship

high-quality mangoes to the US. From this, it follows that the probability of finding high-

quality mangoes is much higher in the US than in India. And once Alphonso has been

branded the best mango, you‘ll get to see only it and no other Indian variety in the US!

Some caveats Observe that the above arguments rest on the fact that if we add the same fixed costs

(which needn‘t just be transport charges) to both high-quality and low-quality goods, the

high-quality goods become relatively cheaper.Herein lies the first caveat — the fixed cost

amounts needs to be more or less identical for our arguments to hold. It is quite possible

that the handling costs for low-quality mangoes may be significantly lower compared to

that of high-quality ones. What matters is that the fixed costs are not substantially

different between high-quality and low-quality mangoes.Second, it is assumed that the

entire fixed costs can be transferred to consumers. In our example, the price of both types

of mangoes goes up by ₹60, although this strict requirement is not really germane to our

arguments.And third, we are talking of only mangoes being shipped out of India. The fact

that those ―mangoes‖ from South America can be substitutes for Alphonso or even our

so-called low-quality mangoes (₹30 per kg, ex-India) isn‘t entering the calculations at all.

The travel dimension An interesting aspect of the third law of demand is that it holds even if the consumer has

to travel instead of the good getting shipped.For that, we could consider an IPL match

being played at the Barabati stadium in Cuttack. Suppose a resident of Cuttack and

someone from the steel city of Rourkela — where I did my entire schooling – are

planning to watch this game. It is reasonable to take the cost of travelling from Rourkela

to Cuttack and back at ₹1,000. Also, we can assume the price of cheap Barabati venue

ticket at ₹500 and a premium one at ₹1,500.In this case, the total cost of the cheap ticket

for our guy from Rourkela works out to ₹1,500, while being ₹2,500 for the premium

viewing. Effectively, one premium ticket for him is worth 1.67 cheap tickets

(2,500/1,500). But for the local Cuttack guy, one premium ticket can buy three cheap

tickets (1500/500). The relative cheapness of the premium ticket for the Rourkelaite

makes it more likely for him to go for it than his Cuttack counterpart.In other words, the

third law of demand operates both ways — whether it is the good or the consumer that is

travelling.

The first two laws Well, what about the first two laws of demand? The first law we all probably know, at

least through experience. It states that ceteris paribus or keeping everything else constant,

the lower the price of a good, the higher is the quantity demanded and vice versa.That

‗keeping everything else constant‘ part — meaning income, tastes, prices of other goods,

etc. — of the statement is, of course, crucial. This law may simply not hold when we

relax it. For instance, when your income increases hugely, you will buy more of most

goods at all prices.The second less-known law of demand states that a good is more

responsive to changes in price in the long run than in the short run. Essentially, in the

long run more substitutes can be found. It allows the quantities purchased to adjust more

easily to prices.Thus, if the price of petrol increases by 50 per cent, you may not be able

to find a flat close to your place of work overnight. But in the long run, you‘ll move

closer to your workplace, which will then enable you to consume much lower quantity of

petrol.As the economist Eugene Silberberg put it, a simple explanation underlies most

economic phenomena: ―It is no conspiracy — just the laws of supply and demand.‖

Govt strategies on onion unworkable

The inter-ministerial suggestions for import of over one lakh tonnes of onions and the

decision to hike minimum export price (MEP) to $500 a tonne f.o.b to curb shipments are

not the panacea for cooling the surging vegetable‘s price. It is easy to say ―we can

import‖ but the nitty-gritty of process of import may not be workable beyond a few

thousand tonnes.Since the Government may subsidise imports, private trade will stay

aloof from taking any initiative. Thus PSUs may be fronted with mandate to subsidise by

50 per cent, or in simple terms, will be asked to sell at a huge loss.

Imports According to Government guidelines, PSUs must undertake due diligence before

initiating any commercial operation. No PSU has a registered/pre- qualified list of

performing parties who can efficiently deliver onions within short span of 45-60 days.

Though the country of origin too remains unidentified, one can surmise that origin could

be predominantly Pakistan. China could be another source but logistics will be difficult to

handle.Dealing directly with little known and never tried Pakistani or Chinese sellers may

not be commercially viable. The option then devolves upon Dubai or Singapore or UK-

/EU-based traders who become intermediaries in import transactions at extra cost.

Government tenders require 21 day notice period for submission of bids. Business can be

finalised with the lowest bidder. Finalising with next low bidders may require special

dispensation from vigilance. Imports from China can take place only in ―reefer

containers‖ or refrigerated containers — which do not ply on India-China route. Their

availability too is scarce. These are procedural issues.Then there are some other concerns

on bidding, pricing and implementation. Assuming a tender for import of 25,000 tonnes

is notified, bids received may not be for more than 500-1,000 tonnes from each bidder.

The reason is simple: Indian demand will spike prices of onion in Pakistan or China.

Foreign sellers will like to limit their risk exposure. Against a single tender, contracting

of not more 2,000-3,000 tonnes may be feasible and that too if procurement guidelines

are relaxed.A simple search on the Internet reveals prices of Pakistani onions vary

between $400 and $700 f.o.b, depending upon quality. Should c.i.f cost of imported

onion be say $500/tonnes at Indian ports or ₹30,000/tonne, then cost at mandi may be

minimum ₹36,000 or ₹36/kg after accounting for 20 per cent as storage, financing,

internal movement, shortages, rotting, etc. At 50 per cent subsidy, the wholesale price

will be ₹18/kg which involves subsidy of ₹180 crore for one lakh tonnes. Has this

subsidy been approved? Only then, the retail price can be ₹20-22 a kg.If frequent bidding

is called for, local prices in Pakistan will be hyper inflationary, escalating to say about

₹50-60 a kg or $1,000/tonne or more. These developments will compel Pakistan to ban

its exports. All concluded contracts will be frozen under force majeure. Neither any

arrival of onion nor any claim can be realised.

MEP and Ban Minimum export price facilitates shady deals. Parties to the deal may be situated in India

and UAE who may be sister companies or such associates companies who conduct trade

with prior understanding. Excess payment can be transferred through grey or illicit

channels to the buyers for ensuring remittance to Indian exporter or black/unaccounted

funds stashed abroad can be formalised through banking channels. It is inconceivable as

to why Governments knowingly or unknowingly become complicit in such questionable

transactions.Putting blanket prohibition on Indian onion export may be helpful for

downward pressure on onion prices. But it will inflate prices of other origins like

Pakistan. If import is an option then banning export will be counterproductive.Since

Governments are seldom logical and rational, but more political—they continue to ignore

market dynamics and pursue interventionist policies of hitting at the middlemen,

subsidization – buying at high prices and selling below market prices – banning exports

etc without any result. Onion problem is seasonal. Soaring prices have to be tackled by

the market. Policymakers can never capture millions of options under which a market

operates.Sharad Pawar rightly commented in October 2013 – ―Government does not

control onions and does not sell onions. Prices are determined by the market.‖ His

thought process can be a gentle reminder.

Rubber Board moots cultivation in States hit by Naxal activities

The Rubber Board has submitted a proposal to the Centre highlighting the potential of

rubber cultivation in areas affected by extremist activities in the country.In an informal

chat with mediapersons on the sidelines of a meeting of rubber growers in Mangalore on

Thursday, Sheela Thomas, Chairperson of Rubber Board, said the Board has proposed

cultivation of rubber in Jharkhand, Chhattisgarh, Orissa and Andhra Pradesh. Rubber is

predominantly grown in Kerala. Tripura and Karnataka are also producing good amount

of rubber. Tripura is the second largest producer of rubber, she said. Rubber cultivation is

promoted in some parts of Maharashtra also, she said.

Nursery

To a query on the proposal to set up a nursery-cum-demonstration plantation in Dakshina

Kannada region, she said the Rubber Board has written to the Karnataka Government

seeking about 150 acres of land for the purpose. Such a nursery will help meet the plant

requirements of growers. Rubber Board can also showcase good agricultural practices, if

there is a demonstration area, she said.

Karnataka proposal

Rubber producers‘ societies in Karnataka have stressed the need for forming a State-level

organisation to ensure better control over the market. Participating in a meeting of the

consortium of such societies in Mangalore on Thursday, Gopalakrishna Bhat, a

representative of a rubber producers‘ society from Bantwal taluk of Dakshina Kannada

district, said that rubber is grown in Dakshina Kannada, Udupi, Shimoga, Chikmagalur

and Kodagu districts of Karnataka, and 75 rubber producers‘ societies are working in the

State.Around 50,000 hectares of land is under rubber cultivation in Karnataka, producing

around 40,000 tonnes of rubber a year.NS Bhandary, president of the Rubber Planters‘

Association, Mangalore, said the price of rubber, which was Rs. 21 a kg during 1991,

went up to Rs. 255 a kg four years ago. The price has again come down now to levels

of Rs. 140.

Cotton acreage may bloom as showers return

VISHWANATH KULKARNI

Cotton sowing in the key central parts of the country has picked up with the revival of the

monsoon over the last few days.―Though farmers in Maharashtra faced problems as

continuous rains hindered planting in several parts, the acreage is set to increase with

momentum in sowing over the next few days,‖ said KR Kranthi, Director at the Nagpur-

based Central Institute of Cotton Research (CICR).

Delayed start

Despite a delayed start to planting this season, CICR expects total acreage under cotton in

the country to touch around 110 lakh hectares, Kranti said. Last year, cotton acreage was

115 lakh hectares.The revival of monsoon in the last couple of weeks has reduced the rain

deficit to 25 per cent from 43 per cent in the first week of July.

State-wise acreage

As on Monday (July 21), cotton was planted on about 56 lakh hectares, compared with

102 lakh hectares in corresponding period a year ago.―While the deficit in acreage would

be made up, the follow up rains in September and October will hold the key for yields

and output,‖ Kranthi said.Maharashtra, the largest State under cotton, will still get to see

about 38-40 lakh hectares under the fibre crop, while in Gujarat, the acreage may come

down to around 23-24 lakh hectares against last year‘s 28 lakh hectares, Kranthi said.In

North India, cotton has been planted on about 14 lakh hectares, while in Andhra the

acreage could stand at around 18-19 lakh hectares.In Andhra and parts of Karnataka,

cotton plantings can go on till early August. However, in Gujarat – where the rains were

scanty till a few days ago – cotton has gained acreage from other crops such as

groundnut. ―The cotton acreage in Saurashtra and across Gujarat is up by at least 10 per

cent,‖ said Anand Poppat, Secretary of Saurashtra Ginners Association.The increase in

yields during fag-end season pickings last year and lower returns from groundnut have

prompted farmers to plant more cotton this year. Poppat estimates cotton acreage in

Gujarat to be between 31 and 32 lakh hectares.―Sowing has picked up across the country

and there is considerable improvement in the cotton acreage over the last fortnight.

However, the acreage will be lower than last year,‖ said MB Lal of Shail Exports.He

expects to see a clearer picture on acreage to emerge in about a week‘s time.

Rubber skids on lack of buyers

―There were no genuine buyers or sellers in the local trading houses and the prices

remained neutral in an almost inactive trading session,‖ sources said.Sheet rubber closed

unchanged at Rs. 139 a kg, according to traders.The grade dropped to Rs. 139

( Rs. 139.50) and Rs. 136 ( Rs. 136.50) respectively, according to the Rubber Board and

dealers. August futures closed at Rs.138.89 ( Rs. 138.94), September at Rs. 136.20

( Rs.136.07), October at Rs. 135.52 ( Rs. 135.72) and November at Rs. 136.48

( Rs. 135.85) for RSS 4 on the National Multi Commodity Exchange.RSS 3 (spot) inched

up to Rs. 120.28 ( Rs. 120.06) at Bangkok. July futures closed at ¥191.2 ( Rs.113.07) on

the Tokyo Commodity Exchange .Spot rubber rates ( Rs. /kg): RSS-4: 139 (139); RSS-5:

133 (133); Ungraded: 127 (127) ISNR 20: 120 (120) and Latex 60%: 105 (105).

Cotton output set for record as farmers shun oilseeds

Cotton production in India, the world's second-largest grower, is set to climb to an all-

time high as delays in monsoon rains prompt farmers to switch rom soybeans andpeanuts,

the nation's biggest cotton trader said. The harvest is poised to expand as much as 2.6 per

cent to 40 million bales of 170 kg each in the year starting October 1, according to B K

Mishra, chairman of the Cotton Corp of India. While the area is increasing from 11.7

million hectares (28.9 million acres), the harvest will be delayed by the worst start to the

monsoon since 2009, he said. Cotton Corp. buys the crop at government-set minimum

prices. Futures have dropped for 11 straight weeks in New York, capping the longest

slump in 55 years, on concern that global inventories are climbing as demand slows from

China, the largest user.

Cardamom up 0.2% as demand picks up

Cardamom prices moved up by 0.22% to Rs 931.10 per kg in futures trade today as

speculators indulged in creating fresh positions at existing lower levels, supported by

pick-up in demand in the spot market.At the Multi Commodity Exchange, cardamom for

delivery in August rose by Rs 2, or 0.22%, to Rs 931.10 per kg in business turnover of

151 lots.In a similar fashion, the spice for delivery in September edged up by Rs 1.50, or

0.17%, to Rs 901.90 per kg in 24 lots.Market analysts attributed the rise in cardamom

futures to pick up in demand in the spot markets.

Sugar down 0.3% on profit-bookings

Amidst profit-booking by speculators, sugar prices declined by 0.26% to Rs 3,127 per

quintal in futures trade today.Adequate stocks position on ample supplies from mills in

the physical market further weighed on the sweetner prices.At the National Commodity

and Derivatives Exchange, sugar for delivery in September fell by Rs 8, or 0.26%, to Rs

3,127 per quintal with an open interest of 9,160 lots.Similarly, the sweetener for delivery

in August shed Rs 6, or 0.20%, to Rs 3,064 per quintal in 21,120 lots.Analysts said

besides profit-bookings by speculators, subdued demand from bulk consumers against

increased supplies kept pressure on sugar prices at futures trade.

Oops! Kitchens drop hot tomato

PIYUSH KUMAR TRIPATHI

Blame it on Bangalore for the overpriced tomato.The berry that adds a special tang to

Indian curries is going beyond the reach of ordinary consumers with prices soaring to Rs

80 from Rs 30 a kg during the past one month.Vegetable traders in the city have

attributed the astronomical rise in tomato prices to short supply from Karnataka, mainly

Bangalore. ―I was selling tomatoes at Rs 30 a kg in June but now it has been increased to

Rs 80. So far as I know, the rise in the prices is due to its short supply from Bangalore,‖

said Surendra Paswan, a vegetable seller at Punaichak vegetable market on

Thursday.Soaring tomato prices are being observed at other major retail vegetable

markets in the city as well. (See graphic)Another vegetable vendor at Anta Ghat said

they are buying tomatoes in the range of Rs 65-68 thus they could not offer it to

customers at cheaper than Rs 70 a kg.The brunt of rising tomato prices is obviously being

faced homemakers, making them a harried lot. ―These days, prices of almost all

vegetables are high and tomato is no exception. Consequently, I have curtailed the

number of tomatoes in the curry. At times, I am also depending on readymade tomato

puree,‖ said Jaya Kumari of Ashiana Nagar.Restaurants in the city are also facing

financial implications due to soaring tomato prices. ―Our food cost has increased by 4-5

per cent due to rise in tomato prices, and we have to face almost similar situations around

this time every year. However, we cannot make our customer suffer, thus we don‘t

increase the prices of the food items,‖ said Tarun Ashok, manager (F&B), 17 Degrees, at

P&M Mall, Patliputra.Experts, on the other hand, claimed that the escalating tomato

prices might normalise only from October with the arrival of its local produce in the

markets.―Tomato is not locally produced during summer and monsoon. Consequently, its

supply has to be obviously done from distant areas, where the temperature is

comparatively low. Accordingly, the rise in its prices in Bihar at this time of the year is

due to the increased logistics costs in bringing it here. The prices would only marginalise

with the harvest of locally produced tomatoes in the winter, probably from October,‖ said

Anil Jha, an expert in the agriculture department.Bihar commands around 9 per cent of

the total tomato produce in the country. Jha claimed that its total productivity in the state

is around 10-15 tonnes. It is grown in around 55,000 hectares spread over districts,

including Chapra, Nalanda, Hajipur and Buxar.The horticulture directorate is also

planning to increase the production base of tomato in the state. ―Tomato is one of the

vegetables under National Vegetable Initiative in the state. Under this mission, we give

subsidy to farmers producing tomatoes up to 75 per cent of the total input cost. There are

three districts under the mission at present — Patna, Nalanda and Vaishali. We are

planning to soon add two more districts — Samastipur and Begusarai. This can be the

one of the long-term solutions to keep the prices of tomato in under control during

summer and monsoon in the state,‖ said Ajay Yadav, director (horticulture), agriculture

department.Agriculture expert Jha hailed such plans to augment the productivity of

tomatoes in the state. ―Tomatoes cannot be stored in cold storages for more than 30 days.

Thus, increasing its production at this time of the year can be the best way to keep a tab

on its prices,‖ said Jha.

Andhra Pradesh to seek NABARD aid for farmers

Hyderabad: After the RBI, the AP government is now planning to approach the National

Banks for Agriculture and Rural Development (NABARD) for rescheduling the crop

loans of cooperative banks as they are not under the preview of the RBI.Cooperative and

rural banks also have given considerable amounts to farmers as crop loans.According to

official records, cooperative banks have given Rs 5,625 crore as crop loans and Rs 547

crore as gold loans. Farmers in the state have 15,78,657 crop loan accounts and 77,008

gold loan accounts with cooperative banks.Various rural banks also gave Rs 7,590 crore

as loans to farmers. Of this, Rs 4,329 crore was crop loans for 7,68,686 accounts and Rs

3,261 crore was gold loans for 4,30,095 accounts.Since commercial Banks are resource

based institutions, they would be in a position to issue fresh loans after reschedulement of

crop loans. However, the cooperative institutions will not be able to give fresh loans

unless they are facilitated with medium term conversion loans from NABARD.Finance

officials, however, say that it may not be possible for NABARD to meet all the

requirements of Andhra Pradesh as the balance amount available with NABARD under

the long-term operation is only about Rs 1,485 crore.Against this background, the state

government wants to ask NABARD to make alternative arrangement of funds for

meeting the full requirement of cooperative institutions.The state government is also

looking at other options in case NABARD is not able to give financial assistance to

cooperative banks. The State Cooperative Bank may approach commercial banks for

temporary accommodation and if necessary, the state government will stand

guarantee.Rural banks too will have a liquidity crunch to issue fresh loans after the crop

loans are rescheduled. They may approach the concerned sponsor banks to provide

support. But the sponsor banks should be in a position to provide the needed financial

support.AP Finance Minister, Mr Yanamala Rama Krishnudu, said that the state

government would approach NABARD on the waiver of farm loan issue and that

NABARD could give advance loans to the cooperative banks.

PSUs to bear Farmers Day programme expense

PSUs to bear Farmers Day programme expense

The PSUs under the agriculture department have been forced to share the expenditure for

the farmers‘ day programme scheduled to be held on August 15. While Campco and

Agro Industries Corporation have been asked to contribute Rs 3 lakh each, Kerala State

Feeds Ltd, Kerala Livestock Development Board, Meat Products of India and Kerala

State Warehousing Corporation among others have been asked to fork in Rs 2 lakh each.

Expenditure worth several crores has been earmarked for the global agro meet by the

agriculture department as well.The state-level inauguration of the farmers‘ day

programme will be held in Kozhikode this year on a Saturday. However, the district-level

farmers‘ day will be on August 17 and will be attended by the local MLA, MP,

agriculture department officials and local people. A senior agriculture department official

told even agriculture officers working in Thiruvananthapuram, Kollam and other districts

in south have been asked to leave for Kozhikode to add colour to the programme.―Each

Krishi Bhavan has been given a meagre Rs 4, 000 for the district-level programme

coinciding with the farmers‘ day which is inadequate. This would be the last farmers‘

day programme of the UDF government as next year Kerala will have the panchayat

elections when the election code of code will be applied. So the agriculture department

wants to make this year‘s programme a grand success,‖ said a senior official.According

to agriculture director R. Ajith Kumar, the global agro meet will be held during

November 6-8 in Kochi which will be attended by major agriculture- dependant countries

like Israel, Philippines, Sri Lanka, and Netherlands.

Punjab Agro, UCO Bank sign pact on agri financing

Punjab Agro-Industries Corporation on Thursday signed an agreement with UCO Bank to

encourage agriculture diversification, particularly through precision farming related to

green house cultivation.Punjab agriculture minister Tota Singh said that green house

farmers have been facing difficulties in getting high value projects financed from banks.

Similar was the case with organic farming as banks were hesitant to finance such

projects, he said.To tackle the problems of financing of such projects to promote

agriculture diversification, Punjab Agro and UCO Bank have decided to work closely and

provide requisite finance to farmers through 182 branches of UCO Bank in the state, he

said.

Vegetables prices in Gurgaon highest among Indian cities

Potato and onion prices were the highest in Gurgaon among all Indian cities in the week

that ended this Wednesday. Tomatoes in the city, too, were among the costliest in the

country, selling at Rs 80/kg, second only to Indore (Rs 85/kg). The price of tomatoes in

Gurgaon registered a whopping Rs 68 increase per kg between July 9 and July 23.Having

the third highest per capita income at Rs 1.22 lakh after Chandigarh and Mumbai,

Gurgaon has seen a huge migration of rich and upper-middle class in the last decade and

a half. The city has become the capital of the software and BPO industry in north India

and is the workplace of the Fortune500 companies.According to government data, the

price rise has been exceptionally high for all three key kitchen staples in the city that has

witnessed opening of top-class supermarket chains. Though Indore in Madhya Pradesh

recorded the highest tomato price during this phase, the increase was by Rs 55/kg, less

than Gurgaon's Rs 68/kg. "We are trying to understand why the prices spiralled so much

in Gurgaon in comparison with prices in Delhi and other cities in the National Capital

Region," said a central government official.Onion prices cooled down across several

cities marginally, among them Mumbai, Ludhiana and Vishakhapatnam. But it increased

by Rs 10 per kg in Gurgaon, Dehradun and Jabalpur during the same period. Prices

generally remain higher in cities in the Northeast and Port Blair.It's possible that the

prices are a reflection of the city's lifestyle. "The prices are usually high in this part where

people buy vegetables and fruits without even asking for the price. Life in Gurgaon is

very expensive in comparison with other NCR cities," said Sudhir Kapoor, a resident of

DLF-II.But people living on the other side of expressway, known as old Gurgaon, also

said prices are high even in the oldest mandi. "Tomato costs between Rs 60 and Rs 80

depending on the quality," said Usha Yadav, a home-maker. Retailers, however, said

prices had gone up due to supply shortage. No fresh tomato is coming from other parts

of.The city is also dependent on fresh produce from Himachal Pradesh.

Planting of crops expected to pick up substantially as monsoon strengthens

A week of surplus rainfall has filled up reservoirs to a level above the 10-year average

and helped the monsoon deficit contract further to 24%, further easing the situation which

was taking alarming proportions after six weeks of drought-like conditions that have

delayed crop planting. Rainfall was 24% above normal in the past seven days, bouncing

back from a deficit of 15% in the previous week and much drier phases before that. This

filled the country's major reservoirs to 35% of the total capacity of 155.05 billion cubic

metres, down from 51% last year, but better than the 10-year average of 34%. "The

situation has improved, but we are still not comfortable. Only when the seasonal rainfall

deficit goes to 10%, the reservoir levels will be in good position," said AB Pandya,

chairman of state-run Central Water Commission. Pandya said the state governments

could decide on allocating water only for drinking or in some cases for irrigation

depending on the reservoir position. "Kharif sowing has been delayed this year and the

state governments can provide water for irrigation if there is gap in monsoon," he

said. The commission which monitors 85 important reservoirs of the country on a weekly

basis, said the states of Punjab, Odisha and Chhattisgarh had better storage than last year

for corresponding period. The situation was not similar in Himachal Pradesh, Rajasthan,

Jharkhand, West Bengal, Tripura, Gujarat, Maharashtra, Uttar Pradesh, Uttarakhand,

Madhya Pradesh, Andhra Pradesh, Karnataka, Kerala and Tamil Nadu. "We expect the

situation to improve in the coming days," said Pandya. Reservoirs normally fill up rapidly

in July and create a water reserve for irrigation, drinking and power generation until the

following year's monsoon. Data from the India Meteorological Department (IMD)

showed that 41% of the country has received normal rainfall this season, as it rained

heavily every day in most regions except northern and north western parts. On Thursday,

it was 10% above average. With heavy rains recorded over central India, west Madhya

Pradesh, Gujarat region, Saurashtra, Kutch, Vidarbha, Madhya Maharashtra,Konkan and

Goa. In the next 24 hours, the Met department has forecast heavy rainfall to occur at

isolated places over Himachal Pradesh, Jammu, Uttarakhand, Saurashtra, Kutch, Konkan,

Goa, Assam , Meghalaya and Andaman & Nicobar Islands. Officials said planting of

crops, particularly cotton, soybean, paddy which was at half of last year's level, is

expected to pick up substantially as the monsoon had strengthened. Crops such as maize,

bajra, and other coarse cereals could also be sown during this period. So far, rainfall is

20%-24% in deficit in the southern, eastern and central parts of the country. In the north

and northwestern regions, the deficit is 36%. In Punjab, Haryana and western UP, the

seasonal deficit is more than 50%. While most of the farms in Punjab and Haryana have

access to good irrigation facilities, monsoon rainfall also influences productivity of

crops.

Punjab Agro Industries Corporation inks agreement with UCO Bank for financing

green houses projects

State-owned Punjab Agro Industries Corporation (PAIC) today inked an agreement with

UCO BankBSE -2.13 % to finance green houses projects in the state. This initiative will

facilitate financing for green houses projects and will provide fillip to crop diversification

in the state, an official spokesman said. Farmers who are engaged in hi-tech farming for

growing vegetables have been facing difficulties in getting the high value projects

financed from the banks. Green House projects costs Rs 35-40 lakh per acre and banks

are generally hesitant in financing such high value farming operations. UCO Bank will

work closely and provide requisite finance to farmers through 182 Branches of UCO

Bank in the state. K S Pannu, Managing Director, Punjab Agro Industries Corporation

said Punjab Agri Export Corporation ( PAGREXCO), a subsidiary of PAIC, is engaged

in encouraging and organising the farmers to undertake Green House cultivation and to

forge backward and forward linkages in the production process.