Indian Agriculture and Agro-based Industry

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Post by Suraj »

It is certainly true that the increase in height is not restricted to the urban yuppie crowd. I've seen it all around the place, not just the major metros. Girls used to generally top out at 5'3 ish but now many go past 5'6" or beyond. Same for guys - 5'8 to 5'9" is going from clearly above average to just past average. It is not just genetics at play, because the increase is broadbased; they are getting much more protein and calcium. Lankiness can be dealt with through additional protein intake and exercise, but the base is there.

Getting back to the thread subject, Business Standard analyzes the NAtional Development Council meeting and the Rs.25000 cr ($6.2 billion) farm investment plan:
A long haul
The fresh Central assistance of a headline-hitting Rs 25,000 crore is subject to two crucial provisions, both of which will require time to be put in place. The first and more critical one pertains to the ratio in which to share the additional funding cost between the Centre and states. This has been left to be worked out later. Indeed, going by the plea made at the meeting by the Bihar chief minister, that the Centre should put in Rs 9 for every rupee spent by a state, this issue is unlikely to be sorted out soon and to the states’ satisfaction. The second rider pertains to the preparation by the states of district-wise agricultural development plans. This, again, is going to take time, especially in the laggard states where it is needed the most and where the potential for quick growth exists.

There is no denying the fact that agriculture needs fresh investment for its revival. While in the early 1980s, over 4 per cent of agricultural GDP went into this sector as public investment, leading to high growth, this figure dropped to under 2 per cent by the mid-2000s. Though private investment has taken up some of the slack, it has gone largely into relatively high-value produce such as livestock, fisheries, poultry, horticulture and the like—all of which are more lucrative, leading to the relative neglect of an area like foodgrains. It is only to be expected then that all the newer sectors have been showing robust growth while the foodgrain sector, including cereals, pulses and edible oils, has been stagnating.
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India likely to be emerging wine destination

Post by RajP »

India likely to be emerging wine destination

Friday June 1, 07:19 PM

New Delhi, June 1 (IANS) India is fast emerging as the next big destination for wine, thanks to its potential to grow world-class grapes along with other high value produces like orchids and medicinal plants, says a new study.

'There is an additional opportunity to cultivate globally priced crops such as wine grapes, orchids and medicinal plants. This could increase the income of farmers by two to five times,' says a report by the Confederation of Indian Industry (CII) on the flagship rural development programme of the United Progressive Alliance (UPA) government -- Bharat Nirman.

The report said there is growing recognition worldwide that India has large tracts of fertile land, low-cost farm labour and multiple seasons that can help the country become the supply and demand centre for several agricultural sectors in the future.

Currently, wine grapes are grown on less than 4,000 acres of land in India, amounting to a mere three percent of total arable land used for grape crops.

The report also said that extending wine grape cultivation to 35,000 to 40,000 acres could help increase rural income by Rs.10 billion and create over 50,000 jobs for the rural people directly related to the wine industry over the next five years.

It said it could also help in tapping significant tourism opportunities in many wine-growing areas of the world.
=http://in.news.yahoo.com/070601/43/6gjoh.html
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Post by Katare »

Per-capita consumption of meat, fish, vegetables, eggs, milk and fruits have all gone up substantially in last 2 decades. This has put sever pressure on the demand and prices of primary food grains. Wheat support prices increased by only Rs 50(?) in 3 years between 2000-03, everyone wanted farmers to diversify into other commercial crops. Well they did and now we have food security crisis! Until 2002 we had so much wheat stocks that everyone use to say that its cheaper to give it away than to store or export. Suddenly with UPAs aam admi focus and NREGS type of scheme demand for food grain has spiraled. The rural/urban poor folks are the primary consumer of food grains while urban folks will feast on meat/fish/milk.

So with stronger PDS/NREGS we have addressed wide spread partial-hunger in rural India, which will yield rich dividends later but have created shortage of food grains. With wheat procurement prices going up by Rs150 to Rs 400 in last couple of years. Farmers would produce more wheat to meet the demand in coming years.

I, for one, see no crisis here! Funny thing is that I don't see any of those "farmers should diversify from wheat to cash/commercial crops crowed" anywhere now! The shortage is marginal, temporary and bound to happen every now and than
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Post by gashish »

MH toasts 40% wine growth
Wine-making continues to be one of Maharashtra's juiciest success stories with the state registering a phenomenal 40 per cent growth in production from last year. Maharashtra also continues to dominate the national market, producing a voluminous 93 per cent of the country's wine.

With the annual crushing season concluding in February, the latest figures show that the state produced 1.32 crore litres in 2007, up from the 94 lakh litres last year. The total area under grape cultivation in the state is now 40,000 hectares and is concentrated in and around Nasik, Sangli, Solapur and Pune as well as Ahmednagar, Latur, Osmanabad and Satara.

To keep pace with the growing demand, an average of seven ‘wine parks' have been opening every year since 2001. This year, six uncorked in Nasik and one in Buldhana.
agro-industry can be the engine of rural economy...agriculture has to be "industrialised"
to drive income levels and consumption in rural and backward regions of india..

but this can prove to be a stumbling block
"As per section 63 of the Bombay Tenancy and Agricultural Lands Act 1948, no person can purchase agricultural land in Maharashtra if he is not a farmer," a senior state government official said.
many states also have similar land reforms act which prevents non-agricultuirst/farmer from buying a farm land...in some cases (K'taka) even a farmer is prohibited from buying land if his income is greater than 2 lacs!

how is one supposed to prove that he is a farmer?...can a salaried person be a farmer legally?
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Post by svinayak »

Kartman wrote:
FWIW, I have a similar anecdotal observation... during my travel over the last 2-3 years in the north (Delhi, UP, Haryana) and the south (TN, Kerala, Karnataka), one thing that I have consistently noticed is that teenagers (high-school/college students) appear to be perceptibly taller (on-an-average nearly "half-a-head") than people of my generation. They were still lanky/skinny, but the difference in height was stark... more TDRE, than SDRE :P
The difference between the grandmother and grand daughter is almost 10 inches in a family side.
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Post by Prem »

Acharya wrote:
Kartman wrote:
FWIW, I have a similar anecdotal observation... during my travel over the last 2-3 years in the north (Delhi, UP, Haryana) and the south (TN, Kerala, Karnataka), one thing that I have consistently noticed is that teenagers (high-school/college students) appear to be perceptibly taller (on-an-average nearly "half-a-head") than people of my generation. They were still lanky/skinny, but the difference in height was stark... more TDRE, than SDRE :P
The difference between the grandmother and grand daughter is almost 10 inches in a family side.
Same observation for the last 10-12 years.
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The Farm Crisis and 100,000 Indian Widows

Post by joshvajohn »

"Her Husband Took His Own Life. She Will Pay the Price All Her Life."
The Farm Crisis and 100,000 Indian Widows

By P. SAINATH

WHEN JAYALAKSHMAMMA finishes her 12 hours of labour - on those days she can find work - she's entitled to less than a fourth of the rice given to a convict in prison. In fact, the rice she gets on average for a whole day is far less than what the incarcerated offender gets in a single meal.

Jayalakshmamma is not a convict in prison. She's a marginal farmer whose husband H.M. Krishna, 45, killed himself in Huluganahalli village of Mandya district four years ago. This district was among the worst affected by the farm suicides of 2003 in Karnataka. In this State, her BPL (below the poverty line) card entitles her to only four kg of rice (and a kg of wheat) a month. True, those four kg are subsidized by the State. But she cannot afford to buy a lot more than that at prevailing market price. She is also one of over 100,000 women across India who have lost their husbands in suicides arising from the farm crisis these past 14 years.

"Four kilograms a month means about 135 grams a day," says T. Yashavantha, who is from a farming family of the same district. He is also State vice-president of the Students Federation of India. "Even an undertrial or convict gets more." What's more, they get cooked rice. She gets four kg of grain. Jail diets in the State vary according to whether the prisoner is on a "rice diet," a "ragi diet" or a "chapati diet." Jail officials in Bangalore told The Hindu "those on rice diets and doing rigorous imprisonment get 710 grams of cooked rice per meal. Those on non-rice diets get 290 grams of rice. Undertrials and those doing simple imprisonment [who are on rice diets] get 505 grams of rice per meal."

The convict doing rigorous imprisonment does eight hours of labojr.

Jayalakshmamma does 12 or more. "But her entitlement is 45 grams per meal if she has three a day," points out Mr. Yashavantha. She doesn't have the time, though, to make comparisons. Her daughter now works at breadline wages in a Bangalore garment company. "At most she can send us Rs.500 in a year," she told us at her village. This leaves her son and herself at home. Their joint entitlement on the BPL card would yield 270 grams per day. That is: they would together still get less rice than even a prisoner on "ragi diet" gets - 290 grams or more.

They own around 0.4 acres and had leased two acres before Krishna's suicide. "On the former we grew vegetables. On the latter, we had sericulture. Vegetable prices have been terrible. Once, we got Rs.1 a kilo for tomatoes. And water costs came to Rs.9,000 (or Rs.70 per hour) over six months." Now they have only the 0.4 acres. "We also sold all our livestock after his death." They have been paying off his loans and most of the compensation they received appears to have gone this way. "My boy Nandipa grazes the goats of others but there's no daily income from it." Instead, they will share the offspring of the animals - if any - with the owner. "I myself make Rs.35 a day working this off-season."

"I wanted Nandipa to study. But he was in despair. Three years ago, then aged 12, he ran off to Bangalore and worked in a hotel. There he was beaten by the owner. He ran away, took the wrong train and landed up in Mumbai. After a while, he was brought back."

"All widows have problems. But those bereaved by the farm crisis suffer worse," says Sunanda Jayaram, president of the women's wing of the Karnataka Rajya Ryuthu Sangha (Puttanaiah group) "Even after losing her husband she has to maintain his father and mother, her own children and the farm - with no economic security for herself. And she is saddled with his debts. Her husband took his own life. She will pay the price all her life."
In Bidarahosahalli village, Chikktayamma's state exemplifies this. Her husband, Hanumegowda, 38, killed himself in 2003. "The debts are all we're left with," she says, without self-pity. "What we earn won't pay off even the interest on loans to the money lenders." She's struggled to educate her three children - who might be forced to drop out though all want to study further. "The girls should study, too. But later, we'll have to raise lots of money for their marriages as well."

One girl, Sruthi, has done her SSLC exams and another, Bharathi, is in the second year of her pre-university course. Her son Hanumesh is in the 8th standard. Her husband's mother and a couple of other relatives also live in this house. Chikktayamma is the sole breadwinner for at least five people. "We have only 1.5 acres [on part of which she grows mangoes]. So I also work as a labourer when I can for Rs. 30 a day. I had a BPL card but they [the authorities] took it from me saying `we'll give you a new card.'" It never came back, says Mr. Yashavantha. "Instead, they gave her an APL [above the poverty line] one."

In Huligerepura, Chenamma and her family grapple with a debt of over Rs.2 lakh left by her husband Kadegowda, 60, who took his life four years ago. "Sugarcane just sank and it crushed him," says his son Sidhiraj. "We have only three acres," says Chenamma. "It's hard to generate a living from that now." But she and her sons still try. And the family plans to shift to paddy this year.

In Thoreshettahalli, Mr. Yashavantha's father, Thammanna, a farmer for decades, says the farm crisis is biting deep. "Most cane growers are not recovering the cost of production. Input costs go upwards, incomes downwards. Also, some 40 borewells were drilled in this village last month but only one succeeded. People are giving up. You will find farmland lying unused even during season."

What about self-help groups? Jayalakshmamma has paid an initial amount "but the group has not yet launched. And I cannot afford the Rs.25 a week. Nor the 24 per cent interest each year." Chikktayamma cannot think of making such payments regularly. "The SHG concept is a good one," says KRRS leader K.S. Puttannaiah. "But in some cases, they've also become moneylenders. Meanwhile, after the initial compensations, the State has no plan for widows and orphans of farm suicides. When have they even thought about it?"

"Remember, these and all other farm women are breadwinners and have always been so," says Ms. Jayaram. "Yet, they have no land rights and no land security. Even in agricultural labour, they are paid far less than men. Those widowed by the suicides are in constant tension. There are debts hanging on their heads which they did not incur. There are daughters whose marriages are pending. The pressure is unending." It is. But all the three women and many more like them in Mandya stand up to it with incredible resilience and still try to run their farms and feed their families with dignity and respect.

P. Sainath is the rural affairs editor of The Hindu and the author of Everybody Loves a Good Drought. He can be reached at: psainath@vsnl.com.
http://www.counterpunch.org/sainath06022007.html
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Post by Kakkaji »

"Indian mangoes losing out to Pakistan"
Mumbai, June. 4 (PTI): Selling mangoes in global market is becoming a bitter experience for Indian exporters as they are losing out to Pakistan due to higher cost because of exorbitant freight levied by international airlines.

"Despite Indian mangoes being of superior quality, we are finding it hard to sustain in the international market. Our mangoes are losing out to Pakistan mainly due to high air freight," CEO Ashvina Trading Company, Kirit Bhuptani, told PTI.

While the original cost of mangoes is Rs 65 per kg, it gets added on with various other surcharges like fuel, security and some even add airport charges. This hikes the cost to Rs 80 per kg. While Pakistani mangoes cost Rs 55 per kg, including of freight. Besides, there is no surcharge," Bhuptani said
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Post by Kakkaji »

Govt may raise sugar buffer stock: Pawar
PTI | Mumbai

The Union Government is considering raising the sugar buffer stock to five million tonnes to check a steep fall in prices, Agriculture Minister Sharad Pawar said today.

After inaugurating Central Warehousing Corporation (CWC) Logistics Park at Navi Mumbai's Dronagiri Node, Pawar said, the Government was considering to increase the buffer stock for sugar from two million tonnes at present.

The Government had earlier announced a two million tonne buffer stock in the wake of excess sugar production and its falling prices in the domestic market.
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Post by Sadler »

....... is that teenagers (high-school/college students) appear to be perceptibly taller (on-an-average nearly "half-a-head") than people of my generation. They were still lanky/skinny, but the difference in height was stark... more TDRE, than SDRE :P
I have noticed this among Indian students on campus. (without getting into too much detail, i work in academia). In fact, in the last few years, i have seen some international students who are absolute giants compared with what i saw in the early '70s to late '80s.

I could not get a clear answer when i asked, but the general answer was better access to nutrition. In fact, the "health" of india was indirectly reflected (at least to me) in the health of these students. The one exception to the rule were girls. I did not encounter a significant ht/wt increase in girl students coming in now from India when compared with their male counterparts.

JSRO (just some random observations)
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Post by Kakkaji »

Citing poor quality, Russia bans Indian rice, groundnuts
Moscow, June. 5 (PTI): Russia today banned imports of rice, groundnuts and sesame seeds originating from India citing poor quality of its produce.

"Actual ban was in force from May 1, but import was allowed on the basis of earlier issued certificates. Now a complete ban has come into force as Indian authorities have failed to take proper (quality) control measures," Interfax reported, quoting agriculture watchdog 'Rosselkhoznadzor'.

Moscow had earlier claimed to have found several consignments of Indian rice, groundnuts and sesame seeds contaminated with pests.

In January, it had intercepted 54 tonnes of Indian groundnut infested with pests dangerous for grain crops.

In March, pests were found in 125 tonnes of rice imported from India, while a month earlier a consignment of sesame seeds contaminated with fungus, alpha toxin B1 and metallic impurities was stopped by Rosselkhoznadzor.
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Post by Kakkaji »

While per capita cereal production is static or declining, the per capita egg production seems to have more than doubled since 1990-91:

http://www.hinduonnet.com/thehindu/holnus/015hdline.htm
Extensive research and development schemes of the Government coupled with effective management and marketing by organized private sector has made steady progress in the poultry sector over the years. Egg production at the end of the Ninth plan (2001-02) was 38.7 billion as compared to 21 billion during 1990-91. With 46.2 billion production in 2005-06, the country ranks fourth in egg production as per FOASTAT data prepared for Annual report of Gov ernment of India 2006-07
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Post by bala »

With a population of a billion plus India must be #1 or #2 in every food/produce sector. Time to allow private corps to get into farming and jump start the yield curve. India is way behind in adopting better farming practice that produce far better yields. Kalam in his gentle ways is prodding the agri scientist to get cracking.

Go to fields from AC labs, Kalam tells agri-scientists

As India seeks to rejuvenate its agriculture sector, President A P J Abdul Kalam on Tuesday asked agri-scientists to leave their "air-conditioned" labs and go to the fields to enhance farm productivity and achieve the targeted 4 per cent growth in the sector.

"During the first green revolution agriculture scientists were involved in the fields to increase production", Kalam said in his address to a National Symposium titled "Agriculture cannot wait: New Horizons" here.

While lauding the efforts of the scientists in achieving breakthroughs through their work in the labs, Kalam said efforts must also be made by them to visit the fields to get a first hand report of the developments.

The President told the scientists that besides the low interest rates for the farm sector, the "steady and honest" farmers should also be provided quality seeds and fertilisers to push up the foodgrain production that has remained stagnant around the "200 million tonnes plus mark".

Kalam also desired the nationalised banks to open more branches in the rural areas.
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Post by gashish »

M.S Swaminathan's ideas
What were the recommended strategies?

We have repeatedly emphasised in the Plan document, unless there is a symphony approach in five major areas, the production will not go up.

The first is to give greater attention to soil healthcare. We had recommended that all farmers should be given a soil heath card. This has not been done. The government only gives subsidies for nitrogenous fertilisers. With the result, farmers do not apply balanced fertilisers. And there was more of Nitrogen and not P (Phosphorus) and K (Potassium). Also, practically there were no micro nutrients.

At the National Commission on Farmers, we again re-emphasised the importance of strengthening soil testing laboratories, mobile soil testing vans, issue of soil health card to every farmer but nothing has been done.

Some states like Gujarat have done good work, so the agricultural growth rate in Gujarat is over 9%. That shows it can be achieved.

The second thing we emphasised in the 10th Plan was the harvesting of rain water, storing it and using it very efficiently.
The third is, credit and insurance reforms, credit linked to insurance, which also has not happened. Hardly 4% of 15 million farmers have taken crop insurance.

The fourth is technology and inputs. Seeds must be available in an affordable manner. Implements hold the key for improving rain-fed farming.

Finally, a remunerative market. Without a remunerative market, why should a farmer grow more?
indian farmer who is basically an entrepreneur doesnt have access to remunerative market


Where is the gap?

In our country, awareness is there but no analysis and action. There is no professionalism on the part of the government. Governments that have taken interest like the Gujarat government, have done well.

There is no magic to agriculture. A plant is the same like us.

The reason for no action is because agricultural administration is not professional. Civil servants come and go, including the director of agriculture. Nowhere in the world are such positions occupied by generalists.

We spend more time in selecting a cricket coach. Do we spend any time in selecting the director of the pulses mission? If we had spent the same amount of time we spend in selecting a cricket coach for agriculture, we would have been on top of the world!
if only shri sharad pawar takes interest in his part-time job at agri ministry

Economists also say that like in the developed countries, the share of agriculture should go down below 4%. Do you agree?

I don't agree. The main point in my view is, there are two needs. One is to have more productivity of small farms. Over 85% of farms are very small; 1 acre, 2 acres.
Secondly, you must have more people in the non-farm sector which means agro-processing, agro-business, etc. So, on one hand, you need small farm management revolution, and on the other, you require an agri-business revolution; one on the production side and another on the post harvest side.

Unless this happens, marginalisation of farmers will continue.
SAZs..Special Agricultue Zones..can address small farms issue by bringing scale and address the labour shortage issue by making modern farming viable.
entrepreneurial farmers should move up the value chain by getting in agro-processing industry...pure production is not going to cut it.
Will you elaborate on your vision on Special Agricultural Zones?

Special Agricultural Zone means you take an area which has untapped production reservoir, develop it into a highly productive system with an end to end, what I call conservation, cultivation and consumption and commerce as one link.

For example, we are developing Kuttanad (in Kerala) like this. There is this Vembanad Kayal and the patta sekharams (farm land). We are suggesting that each patta sekharam of 500 to 600 acres should have certain common facilities like a combine harvester, like a tractor and so on because in Kerala, labour is not available for farming.

Vembanad Kayal will be a special agricultural zone because it has three kinds of potential; one for crop husbandry, the other for fisheries and the third for water tourism. The first thing about a Special Agricultural Zone is, good ecology is good business and bad ecology is bad business. I am talking about tourists polluting the Kayal.

Like the Indira Gandhi Canal, we are now developing a scheme to convert the Vembanad Kayal into a special agricultural zone.


hope to see more SAZs across the country

You said the Gujarat government managed more than 8% agricultural growth. How did the state manage it?
That is because they (Gujarat farmers) have given soil health cards, they have been given credit; in short, they have been given all the support system. They have a lot of land in Kutch region, and they have developed it. Whatever maybe (Gujarat Chief Minister Narendra) Modi's politics, which I may not approve, he is a very good administrator.
we need one modi in each state!


Pure increase in farm production is NOT the solution to farmers' troubles..case in point sugarcane production in MH this year which had bumper sugarcane crop...but 30 lakh tonnes of sugarcane is uncrushed and wilting away in sun.. so farmers either defaulted on loans or commited suicides

the situation would have been lot better, if only:

1) sugar export has not been banned

2) GoI/GoMH has not back-peddaled on blending petrol with ethanol...creating remunerative market by promoting agro-industry is absolutely essential

3) GoMH restarted sick sugar factories

Believe it or not farm labour is in shortage and getting expensive in rural india...which shuts the last resort of sugarcane farmers of converting sugarcane to jaggery.
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Post by vsudhir »

Very very nice article and commentary, gashish.

Thx a ton for posting.
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Post by Vriksh »

double post
Last edited by Vriksh on 11 Jun 2007 20:39, edited 1 time in total.
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Post by Vriksh »

I suggest we allow private entities to RENT land from farmers and pay them for using the land. I think this is allowed even now. This way any farmer/land owner who want better return for his land will RENT his farm/land to agro companies for a share in the profit/ assured RENT on a yearly basis.
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Post by satya »

I suggest we allow private entities to RENT land from farmers and pay them for using the land. I think this is allowed even now. This way any farmer/land owner who want better return for his land will RENT his farm/land to agro companies for a share in the profit/ assured RENT on a yearly basis.
Its already in practise in my native state of Haryana and also adjoining state of Punjab ,its called ''thekka" { lease } for one year normally varies from 10k -20k depending on availbility of water from canal and water level .

This part of economy is not covered under GDP as the person/farmer who actually leases the land pay in cash .

Problem is leasing for agriculture is not allowed for longer than one year basis due to loopholes in land act tht favors the tenant more than the landowner so no company is going to invest in technology and substantial capital to keep on re negotiating the lease every year as they want a certain issues for clear and type of investment doesnt allow to make money in one year .

Another problem is flow of agriculture commodity by farmers from one state to another , its illegal and tht use to create earlier lof depressed prices in grain surplus states of Punjab & Haryana where FCI is the only source of getting tht extra 20-30 rupees per Qt. { 100 kgs} thereby giving the politicians leverage over small and large farmers who sell to FCI for their loyalty to certain political parties.

Greatest tragedy of Indian agriculture has been , the farmer who cultivate the land with his hard labor has to look at others to determine the price for his hard earned crops , its changing but very slowly :cry:

Even a vegetable vendor decides price for his product but never the farmer .This was the scenario till 2 yrs ago in my so called developed state of Haryana , wonder how things are in less developed states .
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Post by gashish »

thks vsudhir..
satya wrote:
I suggest we allow private entities to RENT land from farmers and pay them for using the land. I think this is allowed even now. This way any farmer/land owner who want better return for his land will RENT his farm/land to agro companies for a share in the profit/ assured RENT on a yearly basis.
Its already in practise in my native state of Haryana and also adjoining state of Punjab ,its called ''thekka" { lease } for one year normally varies from 10k -20k depending on availbility of water from canal and water level .

This part of economy is not covered under GDP as the person/farmer who actually leases the land pay in cash .

Problem is leasing for agriculture is not allowed for longer than one year basis due to loopholes in land act tht favors the tenant more than the landowner so no company is going to invest in technology and substantial capital to keep on re negotiating the lease every year as they want a certain issues for clear and type of investment doesnt allow to make money in one year .

Another problem is flow of agriculture commodity by farmers from one state to another , its illegal and tht use to create earlier lof depressed prices in grain surplus states of Punjab & Haryana where FCI is the only source of getting tht extra 20-30 rupees per Qt. { 100 kgs} thereby giving the politicians leverage over small and large farmers who sell to FCI for their loyalty to certain political parties.

Greatest tragedy of Indian agriculture has been , the farmer who cultivate the land with his hard labor has to look at others to determine the price for his hard earned crops , its changing but very slowly :cry:

Even a vegetable vendor decides price for his product but never the farmer .This was the scenario till 2 yrs ago in my so called developed state of Haryana , wonder how things are in less developed states .

cudnt have said better! most of whatever farmer produces will always be in demand 365 days a year somewhere in the country..but still he doesn't get fair price since market forces dont favor the farmer.
the greatest vulnerability(apart from monsoon)of a small indian farmer is the "perishable nature" of produce he produces...the shelf life is very limited and the produce should be in the hands of the customer in shortest possible time...this means the farmer has access to far more limited market(taluka/district headquarters) and so has no leverage to negotiate favorable price.

Almost zero value-addition to farm produce is another bane. A farmer selling tomatoes to the company that makes ketch-up will get higher price compared to selling directly to the local grocerer. In western countries, close to 70% of agri produce undergoes value-addition.

All this because of lack of access to cold-storage plants and refrigerated transport. By some estimates, 50% of our harvested farm produce is wasted for lack of cold-storage facilities. Consider this folks, India wastes more fruits and vegetables than it consumes..a small farmer bears most of the brunt of this wastage.

India is the second largest producer of fruits...but how much of it finds the way into the juice bottles sold worldwide?..close to 4-5%....Indian farmer does his part of the job of producing food remarkably well...we need somebody to step-in for the other part of the job--providing unfettered market access--linking indian farmer to nation-wide market, if not the world market.
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Post by gashish »

Excellent report by PM's council on Trade and Industry

Report on Food & Agro Industries Management Policy

All Issues have been identified and Action Plans suggested..thats the good begining..implementation is the key word.

Salient points:

1) Set up an autonomous Food Development Bank of India (FDBI)

2) Set up Agriculture Insurance Corporation (AIC).

3) Set up National Centre for Crop Forecasting

4) Set up Farm Training Institutes for skills development on the lines of ITIs

5) Ideally, repeal Land Ceiling Act :eek: .
Alternatively provide ways to consolidate farming by

Contract Farming : Andhra Pradesh Model


Cooperative Farming


Lease of Land: replicate Rajasthan model for wasteland development for crops and afforestation


Panchayats should identify degraded land. Co-operatives of landless farmers should be permitted to use this for afforestation and cropping
6) Develop commodity exchanges (futures market) for wheat and rice

7) Develop Cold chain industry
The cold chain industry should be treated as a continuous process industry and awarded priority status for power like airports and hospitals


Incentives would be required to attract investments in this nascent business: import duty on cold chain equipment to be reduced to 4%; excise duty on local freezer cabinets to 3%; 8-year tax holiday; 100% depreciation on equipment; FDBI, FIIs and banks to provide lending at agricultural interest rates.


Empower BDO to allot land to cold chains at nominal rates
8 ) Food Parks on the lines of IT parks
Quick action and demonstration effect from the government. Set up three specialised food parks focusing on the produce of the region with maximum potential. The Information Technology Parks of Bangalore and Hyderabad to be used as models


Select milk & fruit as initial thrust areas


Select three states to change laws to make this happen - such as contract farming, movement of food, abolition of sales tax
9) Realign Tax framework
In processed foods, India is amongst the highest taxed in the world No where else in the world is there a taxation differentiation between branded and unbranded foods. On the contrary, incentives are always given for a movement from unhygienic unbranded foods to hygienically packed processed food
10) Simplify governance of Agriculture sector. Create a single Ministry for Agriculture, Fisheries and Foods

11) Set up Food Regulation Authority FRA. Simplify laws.
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Post by gashish »

Amul becomes a billion dollar company
On the contrary, it has just embarked on a mission to increase its revenues to $2.5 billion — Rs 10,150 crore at the current exchange rate — in just three years. That will require a compounded annual growth rate of over 35 per cent at a time when the industry is growing at 25 per cent a year.

The executives of Anand, Gujarat-based Amul, the country’s largest dairy products maker, said that there is enough untapped market to make it a mission possible. As part of the plan, the co-operative will increase its sourcing of milk, pay farmers more, improve its supply chain and sell more through organised retail.

Its general manager, R S Sodhi, said the size of the organised market for milk and milk products is currently estimated at Rs 50,000 crore while the total market including the unorganised players is worth about Rs 1,50,000 crore.
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Post by gashish »

Sunil Mittal's speech at Upenn:

http://casi.ssc.upenn.edu//research/pap ... l_2006.pdf
Are we using our farms, our farmlands, and our farmers to the fullest potential? The answer is no. We need to move the cropping pattern in India from food grains to crops which are of high value. India is positioned very well to feed the world. India can today use its abilities in the farmlands, its low cost labor, plentiful sunshine, to grow vegetables, fruits, and many other fresh produce items to sell and put them on Western dining tables. The vision that we and the Rothschilds have for India is to link Indian fields to the world and put the fresh produce, as fresh as it can be on the Western tables in four to five days. The time to pluck the produce from the farms and transport it to the Western world in a few days poses a big challenge. It’s not a challenge which cannot be surmounted. We will overcome this challenge, and the good news is
that there is tremendous support from the present government, the prime minister himself is pushing for this experiment to succeed. These experiments will become huge opportunities going forward, not only for putting the fresh produce on the Western tables, but in starting a food
and grocery retail on one end and food processing industry on the other.
This, to my mind, has the biggest potential amongst all the items that I have set out, especially since the contribution of agriculture to the Indian GDP, has become small. If this piece kicks in, I think we can cross the ten percent GDP growth rate that China has been getting in the last
several years.
If we can pass the ten percent mark and stay on course for ten years, the shape of India will change forever. And this will happen only because Indian entrepreneurs would have taken serious initiatives, put in serious capital, to develop the markets.
Growth in Agri will have multiplier effects on economy...no doubt!


SM appears to be a straight-shooter and in-ur-face kind of a guy...note this speech was delivered at US univ.

As India, which has half the population below twenty-five years of age starts putting them to work, the world will have no choice but to embrace them notwithstanding the pressure that is building in the Western world of avoiding jobs moving to countries like India. There is no way that the world will be able to do without Indian hands. The Western world is aging, the data very clearly suggests that. The Western world is in a denial mode on this one. Give it ten years, the pressure will build up, twenty years from now you will find the nurses, all the low end serving staff, all the software engineers, and I’m exaggerating when I use the word all, will come from countries like India. There will be the
Chinese, there will be some others, but mostly its going to come from India. Teachers in the UK, doctors in the UK, lawyers sitting in India working for the law firms in the US, accountants sitting in India working for the accounting firms in the US and UK, is already a reality. This is
only going to get stronger. And I think the Western countries need to embrace this model. They need to go up on the curve of development and go into superior and higher value added products and services, and leave the lower and middle pieces to the countries which will have the hands
and minds to do it.
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Post by gashish »

Agriculture Cannot Wait


[quote]Having gone through several ups and downs in the past six decades, Indian agriculture seems to have reverted to square one at least in one respect. It has revalidated the observation made by Pundit Jawaharlal Nehru in his “tryst with destinyâ€
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Post by gashish »

at the risk of being repetitious.....

Interview with Sameer Barde, Director of Confederation of Indian Food Trade & Industry (CIFTI)

What are the problems affecting the growth of food processing sector in India?

How does the industry body look at the present scenario in-terms of market size?

Among the emerging business avenues and growth options in the diverse Indian agribusiness sector, the food-processing sector is particularly promising and is undoubtedly one of the largest potential markets for processed foods. The segments with the largest growth potential for processing are dairy, fruits and vegetables, wine, confectionary and poultry. Products that have growing demand in the export market are pickles, chutneys, fruit pulp, canned fruits and vegetables, concentrated pulps and juices, dehydrated vegetables and frozen fruits and vegetables along with processed animal based products.

The market size for the processed foods is bound to increase from INR 4,600 bn ($102 bn) to INR 13,500 bn($ 330 bn) by 2014-15 :eek: , assumed to grow at 10%, and the share of the value added products in processed foods would grow from INR 2800 bn($44 bn) to INR 5700 bn, growing at the rate of 15%. The growth witnessed by the sector in the last decade and further improvement in growth rate expected in the years to come, presents innumerable opportunities for investment in processed F&V sector with the estimated market size of about INR 40 billion. The growth rate for many product categories such as juices has been in excess of 25 per cent in the recent past.

The dairy sector has an estimated consumer demand for milk and milk products at INR 1400 billion, growing at about 8 per cent per annum. Poultry meat is estimated to have production of 1.8 million tones, growing at a CAGR of 11 per cent. Besides, ready-to-eat (RTE) industry, still nascent in India, is estimated to be about INR 5 billion growing at 30 per cent a year and expected to cross INR 15 billion by 2010.The wine sector, which has grabbed the attention of corporate doyens, in the immediate past, is growing at about 50 per cent per annum is expected to have a market size of INR 20 billion by 2010.
The government has proposed slew of fiscal measures to attract investment but nothing much has happened and industry has not yet responded, why?

The extensive reforms initiated by the government to remove legislative barriers, is a welcome gesture; thus catalyzing private sector activity in food and agribusiness sector. However, there are issues, yet unresolved, and are the major reasons for reluctance from private players towards investments.

The Supply Chain Issues, such as lack of farmer –processors linkages, poor quality of infrastructure, fragmented retail distribution and regulatory hurdles, have affected inflows of investments in food processing. The tax incentives as presently provided; are not sufficient enough to encourage entrepreneurs to invest in the cold chain infrastructure, where huge investments are required, and gestation period is long. Moreover, the procedural bottlenecks which require multiple approvals, together with delays in obtaining approvals leads to cost overruns and impacts investors’ confidence. The stage of obtaining
clearances is a bottleneck, as there is duplication of procedures of the central and the state governments.
Theo_Fidel

Post by Theo_Fidel »

Farmers are doubly screwed in our present system.

All the cultivation risk is theirs and yet due to the priceinsensitivity of consumers the ability to make a profit is taken away.

Processed foods are good, but they are still a tiny fraction of the market. Also note that the process factories require specific standards and varieties to be grown. I mostly grow 'Mauritius' (common) Pineapples but the process people require 'Q' which is easy to process but the markets do not like. So if I can't get to the process center my entire shipment is a loss.

Also 'Q' has a lower yield of about 20%-30%, requires a lot more fertilizer and pesticides which inturn appear to affect my intercropped Coconuts with some strange wilting disease. I lost about 10% in a high yield 12 year old stand recently, sigh.

I tried investing in a small juicing operation but had to give up as the mechanical juicer requires extremely even ripening and size standards. I would have to throw away about 1/3 of the crop. Can't bring myself to do that.

As long as I intercrop, which is how most farms around here are it seems impossible to get high standardization.
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Post by Vriksh »

Why do you have to have standard fruit for juicing operations. How about trying to invent something that does not need such standardization.

If successful you could probably sell machine and juice. Anyway I am just an armchair farmer so please explain!!
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Post by gashish »

cshankar wrote:Why do you have to have standard fruit for juicing operations. How about trying to invent something that does not need such standardization.

If successful you could probably sell machine and juice. Anyway I am just an armchair farmer so please explain!!

will be interesting to know Theo_Fidel's experiences.....

i'm not an active hands-on farmer..but do have some ancestral land that gives me some claim to the bragging rights of son-of-the-soil... :wink:

so my 2 cents..

Like any other industry, mechanised/automated production inherently demands standardisation.
And:
1)consistent high-yield produce
2)compliance to safety/hygenic regulations makes standardisation a must.

Typically, the requirement on quality of fruit in fresh masket is different than the one headed to juice processor...apart from being of good edible quality, it has to be more mature, have more softer tissues,deeper color and less amount of acid....hence preference to varieties that exhibit these characteristics....all this with additional constraint of consistency...two bottles of same juice from same company shudnt taste different!

a fruit designed by nature is robust and resistant to environmental stresses,diseases and insects..theses qualities,however, need not favour mass scale production for human consumption....so the journey of farm-to-bottle begins with fight with the nature (genetic engineering helps here and the battle is fought in labs)

once planted, then it is vulnerable at all stages of its life...growing on the plant,during harvesting and picking,storage, packaging and transporting ...till it ends in a juicer!...its all a delicate dance with not one but two 800 pound gorillas...nature and time!
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Post by Kartman »

I've never been anywhere close to farming, but I claim son-of-the-soil status by "third-order" effects 8)
(we had 2-acres or so back in the village ages ago in my grandparents' time, but it was taken away during land reform)

Pardon if this is a very obvious/stupid question... but how feasible is it to combine a bit of machinery with a lot of labour to process, say, Theo's pineaapples ? In other words, a more labour-intensive and less automated process than in the West, with the idea of being able to use current varieties, albeit with standardization...

What are the issues, in term of:
- technical (consistency of produce, etc.)
- economic (at what sort of labour price point might this become unviable, etc.)
- other ?
factors with this approach ?
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Post by SBajwa »

but how feasible is it to combine a bit of machinery with a lot of labour to process, say, Theo's pineaapples ?
Why would you invest in a complicated machinery when you can hire cheaply whole families for unskilled labour work?

Problem is overpopulation..

A single person takes care of 1000 acres in California.

5000 people take care of 1000 acres in Punjab and Haryana (supposedly agriculturally advance states).,

So!!! we got too many people depended upon agriculture... People most be given incentives to diversify into other areas like Fish farming, honey bees, poultry, dairy, etc.

Gujrat and Punjab have done excellent in diversifying towards Dairy but we need to export these products too (and not just for NRIs abroad but an average Joe or Jane living in Kansas).

Another problem in Agriculture business is that too many middle traders between farmer and consumer who do not add any value but just buy from farmer and pass it on to the higher trader... There should be limit... on such tradings. These traders are sucking the blood of the small farmers. All traders MUST add a value to the product otherwise they should not be allowed to trade!! for example..

If I buy 100kg of wheat from farmer I cannot sell it unless I convert it only flour or at least clean and package it nicely before passing on to the next trader or consumer. TOO MANY WHOLESALERS (WHICH INCLUDES GOVERNMENT) IS HUGE PROBLEM...
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Post by Kartman »

Bajwa-ji: The labour issue is precisely why I asked if the automated bideshi-style machines could be replaced by some machinery plus lots of labour. Advantages:
- employment generation
- reduced need for ultra-standardized, "machine"-friendly production (replacing traditional varieties that are more suited to local climate, diseases, etc.)

Some issues that I can think of that could affect such a labour-intensive push are:
- technical/structural (e.g. need to maintain a sterile, sans human intervention, environment in order to meet health/hygiene stds for export)
- economic (at what price point is labour-intensive prod. competitive w.r.t. automated plants)

Any others (?)

Gurus, please to shed some gyaan onlee...
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Post by Vriksh »

So a easy way to reduce produce and agro product price is by a farmer to retail chain bypassing all the middlemen.

Why has this not been done so far, there are profits to be made and methinks there are enough players such as Reliance and others that are slowly stepping in to fill the void.
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Post by SBajwa »

C Shankar,

Retail chaining by farmers is a tough job conidering that illiterate small farmers(5 acres - 10 acres) are always on debt.

Retail Chaining is being somewhat done by farmers (on a limited basis) for vegetables, etc. not for grains or other cash crops.

I belive MS Gill (former election commissioner) when he was chief secretary of punjab (90s) tried a concept called "Farmer's market" that he learned from USA.

Which is

"One day of the week farmers are allowed to haul their produce to a city and sell it to the customers" This has done wonders where customers get fresh vegetables and farmers make lots of money.

Rice millers in Punjab/Haryana/UP for example buy a basmati that's 2500 - 2700 ruppes per quintal (100 kg) and after milling and packaging it sell it for profit of about 33% - 50% which retailers in USA sell typically for $12-$20 per 4kg (10 lbs).
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Post by gashish »

IMVHO, Agriculture shudnt be looked upon as the employment generating sector of the economy. The focus should be to make it a viable and profitable enterprise to farmer and agro-entreprenur just like any enterprise in other sectors. The report on Food and Agro Industries management(posted above) outlines very good policies that can make this happen. SAZ as proposed by M.S.Swaminathan, can address lot of of issues Indian agriculture faces today including the fragmentation in farm land ownership, flow of technological inputs from lab to farm,marketing strategies that can open up new remunerative markets. SAZ if implemented as envisioned can re-vitalize the rural economy--increasing the income levels and hence consumption which in turn can put the growth in other sectors in warp-drive....empolyment generation should come from this growth. Farming and food processing should be done in a manner that is efficient for local conditions...if it requires machines so be it.

Agriculture today in India is still very labor-intensive mainly because small farmers(85% of total crop land in 1-2 acres portions) cannot afford machines and energy to operate them. Mechanization is a must simply because machines do their job efficiently compared to humans and draft animals. The work done by machines is around 10-15% of energy they consume, while for humans and draft animals it is around 1-3%...you see they have lot of other biological functions to do other than work..:). This is not to say that animals are not needed at all and they do have their advantages (non-monetized source of energy is big one). Humans should be used at what they do best...skilled and intellectual work....like operating those damn stupid machines. Agri training schools on the lines of ITI to impart such skills have to be established.

Lastly, I think that there is availability of huge farm labor in rural India is a myth(based on my anecdotal experience)...there is generally shortage of it in peak-seasons(atleast in MH)and gets expensive for a small farmer...this might be a localized effect due to structural issues(areas with surplus labor not connected to the ones with deficit)...flow of manpower to IT hotspots(blr,hyd,ncr) from all India is very easy...this cannot be said of agri-sector as it is so widely spread....SAZs might again help here by creating agri-hotspots that provide access to affordable labor through out the year.
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Post by Kakkaji »

Mango becomes dearer in retail market
New Delhi, July 9 (PTI): Price of mangoes in the domestic retail markets are ruling higher this year despite a 20-30 per cent rise in production as traders are preferring exports.

"This year mango production has gone up by 20-30 per cent as compared to last year's output. But as traders are focusing more on exports, the availability in domestic markets is less, resulting in a price hike," Muzzafarnagar-based mango trader Tariq Mustaffa says.

He said high quality Dasari variety are being sold in the range Rs 25-30 per kg, up from Rs 20-30 per kg last year.

"Though rising value of the rupee has hit shipments, growers still prefer exports, resulting in low arrivals in the local markets," Siddiqui added.
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Post by gashish »

Amul seeks PMO aid for milk export ban lift

banning of milk powder export is yet another example of GoI screwing farmers to rein in inflation....note that milk production was in surplus for the year and dairy products have low weightage in WPI to boot, which makes the ban illogical. classic way of trying to fix symptom rather than the disease.

this whimsical banning of export of agro products effects growth of agro industry..i wonder which other industry tolerates such whims of govt.

the largest producer of milk deserves to be the major player in global trade of dairy products.
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Post by gashish »

Sugar cos may get sweetner
Maharashtra Chief Minister Vilasrao Deshmukh had called a meeting of office bearers of Maharashtra State Co-operative Sugar Factory Federation Ltd, Nabard and State Central Co-operative Bank officials, senior cabinet ministers on Sunday to help the state sugar industry which is reeling under the pressure of bumper crop and falling sugar prices. The meeting was also attended by Union Agriculture Minister Sharad Pawar.

This year too a bumper sugarcane crop is expected, of nearly 844 lakh tonnes, exceeding last year’s production figures by 44 lakh tonnes.

Despite giving various sops, the sugar industry to extend the crushing season till May-end (normally the season ends by March-end or mid-April) nearly 30 lakh tonnes of sugarcane remained uncrushed, resulting in widespread resentment against the state government among the farmers.

The Nabard has agreed to make available pre-seasonal loan of around Rs 2 crore to each sugar mill :eek: and the state government has also agreed to give a guarantee to these loans, said sources from sugar industry.


..ok so we will now have another bumper crop ...remember last year's bumper crop crushed most of the farmers but not all the sugarcane...sweet :x


same old same old technique...fix the symptom and hope the disease is cured :evil:

*allow the ethanol/bio-fuel industry to devlop which would could soak up excess sugar cane. But the liquor lobby is very strong and has politicians in their pockets. This lobby simply doesnt want to see any competition for molasses in the market.

*dis-courage farmers in rainfed/dry areas from growing water-intensive crops like sugar-cane. this has taken heavy toll on ground-water. promote alternative attractive crops.
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Post by Kakkaji »

Eggs production statistics in India:

http://www.hinduonnet.com/thehindu/holnus/015hdline.htm
With 46.2 billion production in 2005-06, the country ranks fourth in egg production as per FOASTAT data prepared for Annual report of Government of India 2006-07. Photo: K.K. Mustafah. Meanwhile, the Tamil Nadu Government has launched the scheme to provide eggs thrice a week in the nutritious noon meal for children from July 15 8) , birth anniversary of former Chief Minister K. Kamaraj
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Post by bala »

Maersk India move to put India on banana trade map

Maersk India Pvt Ltd, the Indian arm of the Copenhagen-based global container giant, has initiated moves to put India on the world banana trade map. The steps being undertaken include facilitating research in banana production, harvesting, warehousing and packaging and providing end-to-end logistics support, in addition to arranging for training to local exporters in cold chain management and marketing support in foreign countries, according to Maersk India sources.

India produces about 23 per cent of the world’s production of 48.9 million tonnes of bananas but is hardly present in the global banana trade of about 14 mt, worth about $4.7 billion. This is because, as Maersk India has noted, in India there is a lack of awareness about the market, poor post harvest management and inadequate supply chain. Ecuador, a much smaller country, on the other hand, accounts for 30 per cent of the world banana trade. Maersk’s refrigerated container initiative, that started six months ago, helped banana exporters in Gujarat and Tamil Nadu undertake trial shipments to the UAE and Saudi Arabia.
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Post by gashish »

bala wrote:Maersk India move to put India on banana trade map

Maersk India Pvt Ltd, the Indian arm of the Copenhagen-based global container giant, has initiated moves to put India on the world banana trade map. The steps being undertaken include facilitating research in banana production, harvesting, warehousing and packaging and providing end-to-end logistics support, in addition to arranging for training to local exporters in cold chain management and marketing support in foreign countries, according to Maersk India sources.

India produces about 23 per cent of the world’s production of 48.9 million tonnes of bananas but is hardly present in the global banana trade of about 14 mt, worth about $4.7 billion. This is because, as Maersk India has noted, in India there is a lack of awareness about the market, poor post harvest management and inadequate supply chain. Ecuador, a much smaller country, on the other hand, accounts for 30 per cent of the world banana trade. Maersk’s refrigerated container initiative, that started six months ago, helped banana exporters in Gujarat and Tamil Nadu undertake trial shipments to the UAE and Saudi Arabia.
cold chain..thats one of the key elements.
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Post by Katare »

In babudom commonsense is usually the first casuality.....

Nutrient-based fertiliser subsidy regime may trigger product innovations
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