Developments in Indian Agriculture

The Technology & Economic Forum is a venue to discuss issues pertaining to Technological and Economic developments in India. We request members to kindly stay within the mandate of this forum and keep their exchanges of views, on a civilised level, however vehemently any disagreement may be felt. All feedback regarding forum usage may be sent to the moderators using the Feedback Form or by clicking the Report Post Icon in any objectionable post for proper action. Please note that the views expressed by the Members and Moderators on these discussion boards are that of the individuals only and do not reflect the official policy or view of the Bharat-Rakshak.com Website. Copyright Violation is strictly prohibited and may result in revocation of your posting rights - please read the FAQ for full details. Users must also abide by the Forum Guidelines at all times.
Kakkaji
BRF Oldie
Posts: 3282
Joined: 23 Oct 2002 11:31

Postby Kakkaji » 19 Aug 2005 07:28

A Green Retreat
Agriculture production has fallen short of target yet again. A worried Prime Minister calls for action

http://www.indianexpress.com/full_story ... t_id=76541

The euphoria over the Green Revolution and over-flowing godowns might soon become a thing of the past. For the first time, there was a serious fall in the procurement of wheat. It’s barely touching the buffer stock. The procurement has been 14.79 million tonnes this year as compared to 16.80 million tonnes last year.

Kakkaji
BRF Oldie
Posts: 3282
Joined: 23 Oct 2002 11:31

Postby Kakkaji » 19 Aug 2005 08:06

Sun of the soil
A scientist in Ranchi improvises on soil solarisation—a three-decade old Israeli technology—to battle plant pests

http://www.indianexpress.com/full_story ... t_id=76543

Vivasvat
BRFite
Posts: 333
Joined: 11 May 2005 08:03

Postby Vivasvat » 22 Aug 2005 04:41

High profit medicinal farming becoming popular in Central India
Acres of land, once under traditional farming are now covered with medicinal plants and trees such as Safed Musli, Ashwagandha, Amla (Indian gooseberry), Sridar Patidar, Gur- Mar, Jamun Sativa and Patchtoli.

However, farmers complain that the government is not providing export facilities, which is forcing them to settle for a fraction of the actual market rates of the plant.

“There is a an international market for Safed Musli. It is sold for 3000 to 4000 rupees per kilogram in the international market. However, in our country the government is not providing any such facilities, for exporting our produce. The agents come and collect the herbs for about 500 rupees to 700 rupees per kilogram and then sell in the market at the international rates,” Ashok Patidar, another farmer, said.

Kakkaji
BRF Oldie
Posts: 3282
Joined: 23 Oct 2002 11:31

Postby Kakkaji » 31 Aug 2005 07:28


Kakkaji
BRF Oldie
Posts: 3282
Joined: 23 Oct 2002 11:31

Postby Kakkaji » 06 Sep 2005 21:48

Centre worried over rice, cereals as rainfall dips

http://www.indianexpress.com/full_story ... t_id=77643

Kakkaji
BRF Oldie
Posts: 3282
Joined: 23 Oct 2002 11:31

Postby Kakkaji » 16 Sep 2005 06:25

Food ministry to set up ‘grain banks’

http://www.indianexpress.com/full_story ... t_id=78193

Kakkaji
BRF Oldie
Posts: 3282
Joined: 23 Oct 2002 11:31

Postby Kakkaji » 16 Sep 2005 07:59

Better packaging needed for Himachal apples

http://www.indianexpress.com/full_story ... t_id=78194

Ani
BRFite -Trainee
Posts: 15
Joined: 19 Jul 2005 13:11

Postby Ani » 17 Sep 2005 00:16

Guys, has anyone heard of SRI? Is it going to be implemented in India? Will it work in India? It has worked wonders in nepal and it is proven there.

I found a website related to it, about its methodology, i think you agri people will understand more from it than me:

http://ciifad.cornell.edu/sri/methods.html

Santosh
BRFite
Posts: 709
Joined: 13 Apr 2005 01:55

Postby Santosh » 17 Sep 2005 02:46

Read an article somewhere (probably rediff) about some farmers in South India adopting the SRI technique. The guy was busy diverting water away from his farms while others were trying to channel as much water as possible into their farms. Yields were nearly double of conventional tech. Will try to find the link.

Raj
BRFite
Posts: 328
Joined: 16 May 1999 11:31

Postby Raj » 17 Sep 2005 07:19

Foodgrain production poised for a jump

EW DELHI: Winter oilseed output is expected to fall because of poor rains, but a higher crop area will boost grain production, the farm ministry said on Friday. Winter grain output is estimated to rise to 105.3m tonnes from 103.3m last year, Union agriculture secretary Radha Singh told reporters after a two-day meeting of farm officials.

Ani
BRFite -Trainee
Posts: 15
Joined: 19 Jul 2005 13:11

Postby Ani » 20 Sep 2005 01:44

Agri-biz package to come before Cabinet

http://timesofindia.indiatimes.com/arti ... 236296.cms

Kakkaji
BRF Oldie
Posts: 3282
Joined: 23 Oct 2002 11:31

Postby Kakkaji » 20 Sep 2005 02:52

Himachal tribes to grow wonder plant 8)

http://in.rediff.com/news/2005/sep/19plant.htm

Kakkaji
BRF Oldie
Posts: 3282
Joined: 23 Oct 2002 11:31

Postby Kakkaji » 24 Sep 2005 01:53


Kakkaji
BRF Oldie
Posts: 3282
Joined: 23 Oct 2002 11:31

Postby Kakkaji » 27 Sep 2005 07:14


Kakkaji
BRF Oldie
Posts: 3282
Joined: 23 Oct 2002 11:31

Postby Kakkaji » 14 Oct 2005 07:25

Going greenhouse: Himachal packs a crunch
With irrigation schemes taking off, off-season vegetables are the new cash crop for the state

http://www.indianexpress.com/full_story ... t_id=79961

Airavat
BRF Oldie
Posts: 2326
Joined: 29 Jul 2003 11:31
Location: dishum-bishum
Contact:

Postby Airavat » 15 Oct 2005 12:38

India Today

Image

Sweet Returns

For decades, Gujarat has waged an unsuccessful battle against salinity in its coastal areas. But today it is turning the problem on its head with the novel scheme of building dams on rivers just before they merge into the sea, thus, preventing seawater from entering the coastal lands through river channels during high tide. This scheme will not only check the increasing salinity but also help in water conservation, besides promoting eco-tourism.

Gujarat, which has a 1,600 km coastline, the longest in the country, has always been vulnerable to salinity. But the problem was compounded when the farmers in the coastal region started exploiting groundwater in the mid-1980s. As a result salinity was increasing at the rate of 50 m annually on the Saurashtra and Kutch coasts. According to official estimates, by the late 1990s, 10.64 lakh hectares of cultivable land along the Gujarat coast had been swallowed by salinity.

Today, huge sweet water lakes have come up along the 1,100 km stretch of coastline in Saurashtra and Kutch where a number of dams have been constructed. In winters thousands of migratory birds, including some from Europe, flock these lakes. As many as 80 species of birds were sighted last winter at one such lake at Nikol near Bhavnagar. This presents an opportunity for eco-tourism based on both sea and sweet water. Says Amit Jethva of Gir Youth Nature Club, an NGO working for wildlife protection: "These lakes are helping create a mini-Kerala on the Gujarat coast. They are turning into bird sanctuaries."


PICTURE SPEAK


ECO-SENSE: The lakes along the coast are attracting migratory birds

Apart from eco-tourism, the building of dams is also making water available for irrigation, changing the crop pattern in the process. Says Nanji Dhapa, 60, a farmer who owns eight hectares in Nikol village: "Till recently, we used to grow only groundnut and that too during the monsoon. Now we grow millet, corn and wheat even in summers." The Nikol dam now benefits six villages, where the land was earlier becoming saline.

So far, dams have been built on 30 rivers in the coastal region. There are a total of 71 rivers in Saurashtra and 97 in Kutch. Says M.S. Patel, secretary, Water Resources, Gujarat, who is overseeing the project: "We have taken up the project on a war footing. Next year we will build dams on 44 rivers in Kutch and over 15 rivers in Saurashtra." About Rs 100 crore have been spent on the scheme and another Rs 100 crore have been earmarked for the next year. In an innovative move, the state has roped in corporations like Ambuja Cement, Tata Chemicals and NGOs like Aga Khan Trust to build more dams.

The Government has also fortified the scheme by adding to it the concept of inter-linking-coastal sweet water lakes are being linked to each other through a network of canals wherever it is technically feasible. This is especially helpful in the monsoons when surplus water can be transferred from one lake to the other. In Junagadh district, where a network of canals has come up, some of the old coastal reservoirs have been revived.

Even Sodham village near Kodinar in Junagadh now has a beautiful lake. Sodham suffered from a perennial water scarcity due to weather conditions and its topography. Last year Ambuja Foundation, the company's NGO, linked it with another dam Panch Pipla through a canal. This year the surplus water from Panch Pipla flowed into Sodham. And for the first time the Sodham reservoir was filled up to the brim. Says H.S. Patel, joint president of the Ambuja Cement factory at Kodinar: "It is a dream scheme that will change the face of coastal Gujarat."


PICTURE SPEAK


SEA CHANGE: Modi has given the coastal dams scheme a major thrust

All the rivers on which coastal dams are being built are non-perennial and generally go dry after the monsoon. Now, these will have lakes on their mouths, thus, providing ample sweet water to farmers. Just how sweet water goes waste in areas receiving erratic rainfall can be observed near Rajpar village in Junagadh district where the Raval river meets the sea and near Bhavnagar where the Malan river flows into the sea. Construction of a dam is underway on the Malan river, while one on the Raval river is scheduled to be built in a couple of years. The latest dam to come up under this scheme is on the Meda creek near Porbandar where it has created a sweet water lake from six small rivers which otherwise used to flow into the sea. The 500 m wide dam has created a lake 20 km in length and 5 km in width and that too in an area known for poor crop yield.

The scheme was first proposed in the late 1970s by former Gujarat chief secretary H.K.L. Kapoor to prevent salinity which had emerged as a big menace at that time on Gujarat's coast. Water conservation was not the main target at that time. For years, the scheme didn't make much headway till the Keshubhai Patel government dusted it off in the late '90s. It was only after Narendra Modi took over as chief minister in 2001 that the scheme became one of the spearheads of the state's water conservation and salinity prevention programme. "We shall turn Gujarat's coast into a mini-Kerala by building dams on rivers on the coast," Modi declared soon after assuming office. However, the project could not have been successful without the support of farmers who donated their land. Says Rambhai Jhala, a farmer of Kodinar who donated 4.5 acres to the canal: "My farmland was not saline. But a majority of farmers in our area are facing the salinity problem. So I thought I should make the sacrifice."

As the project is being implemented with full vigour in the western state maybe other states like Orissa, which has a huge coastal belt but receives scanty rainfall, can learn a lesson from it.

svinayak
BRF Oldie
Posts: 14223
Joined: 09 Feb 1999 12:31

Postby svinayak » 19 Oct 2005 04:57

`India Organic 2005' from November 4

Special Correspondent
The event will provide a common platform for buyers and sellers

# India has 200 million potential customers for organic produce
# Market for organic produce in India is worth Rs. 200 crores
# The world market is worth $35 billion

BANGALORE: As part of a long-term strategy to improve the market for organic produce, the Government, along with other agencies, will conduct an international organic trade fair, "India Organic-2005", from November 4 to 7 at Lalbagh here.

Union Minister for Agriculture Sharad Pawar will inaugurate the event. Chief Minister N. Dharam Singh, Agriculture Minister K Srinivas Gowda, and representatives of international organisations will participate in the fair, which is to be held for the first time in the country.

The main aim of the event is to create a common platform for buyers and sellers of organic produce. It will provide an opportunity to participants to strike deals, officials of the Directorate of Agriculture say.

Seminars will be held for three days as part of the event. They will highlight organic agriculture scenario in the country and deliberate on ways of improving the positioning of the sector. President of the International Federation of Organic Agriculture Movement (IFOAM) Gerald A. Hermann will speak on "Challenges before India to make space for itself in the world of organic agriculture and trade."

A workshop on organic cotton will be organised for farmers from Madhya Pradesh, Maharashtra, Andhra Pradesh and Karnataka.

The International Competence Centre for Organic Agriculture (ICCOA), a Bangalore-based non-governmental organisation; the Agricultural and Processed Food Products Export Development Authority of the Union Ministry of Agriculture; the Government of Switzerland; the Indian Organic Market Development Project ; and the International Federation of Organic Agricultural Movements are sponsoring the fair.

The event is likely to be attended by over 500 traders, 30 of them from other countries. A large number of producers, processors, input manufacturers, exporters, and importers, Union and State government organisations, certifying agencies and consumer organisations will participate. It will serve as a platform for the developed world, which is looking to India as a major source for organic products, officials say. India has 200 million potential customers for organic products and a market of Rs. 200 crores. The world market for organic food ingredients is $35 billion, and it is growing at more than eight per cent a year. Manoj Kumar Menon, event coordinator and manager (market development) of ICCOA, says cultural programmes will be organised on the sidelines of the event.

Details are available from the Deputy Director, Organic Farming Cell, Directorate of Agriculture, Seshadri Road, Bangalore (phone: 080-22105350) and ICCOA, 951 C, 15th Cross, 8th Main, Ideal Homes Township, Rajarajeshwari Nagar, Bangalore (phone: 080-28601183).
Last edited by svinayak on 25 Oct 2005 02:16, edited 1 time in total.

SaiK
BRF Oldie
Posts: 36415
Joined: 29 Oct 2003 12:31
Location: NowHere

Postby SaiK » 25 Oct 2005 02:04

we should stop these onion imports or any vegetable imports from china. chinese directly fertilize them using human feces without any type of treatments. [chinese themselves say this/ wann prove and certificate, i can arrange for that.]

besides the bird flu infection.!!

Div
BRFite
Posts: 327
Joined: 16 Aug 1999 11:31

Postby Div » 25 Oct 2005 07:04

What's with Mukesh Ambani & fruits?
http://in.rediff.com/money/2005/oct/24bspec.htm

Vriksh
BRFite
Posts: 406
Joined: 27 Apr 2003 11:31

Postby Vriksh » 25 Oct 2005 08:37

The high level of organic recycling of Human and Animal waste into fields in China is one of the reasons why their crop productivity is far higher than India.

Indians routinely use cowdung in farming and we have no problems with that, but human feces is a problem. I don't get this absurd logic. The fact of the matter is that when fecal matter is returned to soil in correct proportions then the disease causing bacteria mostly using anaerobic pathways are not able to compete with aerobic bacteria that recycle the fecal matter into the photosynthetic pathways in a safe way.


SaiK wrote:we should stop these onion imports or any vegetable imports from china. chinese directly fertilize them using human feces without any type of treatments. [chinese themselves say this/ wann prove and certificate, i can arrange for that.]

besides the bird flu infection.!!

Kakkaji
BRF Oldie
Posts: 3282
Joined: 23 Oct 2002 11:31

Postby Kakkaji » 28 Oct 2005 08:09


Vasu
BRFite
Posts: 868
Joined: 16 Dec 2002 12:31

Postby Vasu » 28 Oct 2005 11:19

Cabinet clears repeal of two farm cess laws

The Cabinet on Thursday approved an agriculture ministry proposal to introduce a bill in Parliament for the repeal of the Agricultural Produce Cess Act, 1940 and the Produce Cess Act, 1966. This has been a long-standing demand of exporters and farmers and is expected to be a big morale booster to both. It is expected to make farm produce exports more competitive even while rationalising the government’s incentive structure for farm produce exports. Both the Acts impose a tax on exports, now seen as bad economics since farm exports are meant to boost farm incomes and also since exports are being incentivised through schemes such as the Krishi Upaj Yojana, involving revenue loss.

svinayak
BRF Oldie
Posts: 14223
Joined: 09 Feb 1999 12:31

Postby svinayak » 29 Oct 2005 07:01

Egg exporters cash in on avian flu fears — Disease-free poultry farming helps gain advantage in global market

G. Gurumurthy

Coimbatore , Oct. 28
THE fear of the Asia-originated avian flu instances have forced the European Union clamping imports of birds. But, the domestic poultry has taken advantage of the situation to expand its export terrain.

The Tamil Nadu-based layer bird growers are set to upstage another milestone in the export of table eggs this year, thanks to the opportunity evolving to tap newer export markets. The domestic poultry sector expects that the disease-free poultry farming in India, as opposed to the reports of avian influenza in the South-East Asian nations such as Thailand and Vietnam, would kick up demand for poultry products comprising both table egg and chicken meat in the coming days.

"The layer sector in Namakkal zone which already accounts for 70 per cent of table egg exports has recently floated a separate forum, the All India Poultry Products Exporters Association with its headquarters in Namakkal, and the new association would provide export facilitation to the poultry farmers in the region," said Dr P. Selvaraj, Chairman of the Namakkal Zonal committee of the National Egg Coordination Committee.

Dr Selvaraj, a noted player in both layer and broiler farming besides owning a leading hatchery, said the broiler sector from the South has recently blazed a new trail in exports by registering with the Japanese Government for export of chicken meat. This, according to him, would pave way for the region's broiler industry to export for the first time to a sophisticated market like Japan.

"The new association is now working with the APEDA to get the Japanese Government clearance for export of table eggs, too, from India," Dr Selvaraj told Business Line. He added that with scope for further widening the export market for the table eggs, the shell egg export from the region is poised to go up by 50 per cent over last year's levels.

Namakkal layer zone comprising Namakkal, Rasipuram, Sankari and Erode, accounting for daily shell egg production of around 1.3 crore units, has during the 2004 calendar recorded a monthly average egg export of 52.5 million units (based on the first nine month shipments, that is January-September 2005), and, this year, the average monthly shell egg shipment has gone up to 66.7 million units (up to September 2005), registering a 25 per cent growth.

As for the avian flu problem, Dr Selvaraj said the poultry farms in India, especially those in the South are quite insulated from the virus attack as the bird farms are reared in high temperature zones. Further, unlike Thailand or Vietnam where piggeries are situated alongside the poultry, poultry farms here are not clubbed with any other animal zones, he added. Poultry vaccines are easily available to contain the disease any time, though bulk of these vaccines are imported. Being aware of the implications, the poultry farmers have long ago initiated all bio security practices within their respective farm areas. "I consider the scope for any avian flu attack is far remote in this context," he added.

kautilya
BRFite -Trainee
Posts: 46
Joined: 11 Apr 2001 11:31
Location: USA

Postby kautilya » 10 Nov 2005 13:44

Repying to Santosh's post on "Nation on the march" thread here, since the topic is more relevant here.

Hi Santosh,
Maybe I don't get it, but I will try :) and, if you think what I am saying is nonsense, maybe I really wasn't clear enough. :)

This answer will probably be a long one, since your post was pretty long.

In future I would prefer, if you tried to be logical and polite. Thank you very much...

First let me say, that what you have "claimed" the positive point of MSP is that it helps poor farmer. Irrespective of whether I agree that this is happening or not, you forgot the negatives I had mentioned, viz.
1) It causes overproduction of certain things like grain, while Indians are moving to a more varied food basket with better economy.
2) It wastes our taxes by resulting in a lot of produce to rot.
c) It wastes the labour of the farmers whose produce is rotting
3) It increases food import for food products which have increasing demand in India, because they are under produced. This is lost potential jobs
4) It reduces the purchasing power of a lot of people by making certain food products (items with MSP, or those things that have to be imported) more expensive then they should be. If people could buy those things cheaper, they would have extra money left to buy other things like clothes, shoes etc. Since this is not the case, this is again lost potential jobs.
5) It makes basic food products more expensive for the poor people, because MSP is above what market price is, otherwise it will be useless and will have no effect.


Let me try to answer your post now...

My dear friend, the major reason for a lot of "ills" that you are claiming that MSP is solving are actually due to the govt. control of the agriculture market. Let me give you some examples --
1) The reason for "market imperfection and fragile market integration" is because there is no integrated market for agriculture in India. Do you know that Private traders are required to obtain a government permit to transport grain out of a particular state or even district? What do you think is the result? While a state like Punjab might have excess of grain due to these restrictions a state like Bihar might have deficiencies. Look at he link below for more details on statewise restrictions on movement of essential commodities.
2) The reason for poor infrastructure in things like "cold storage" is the govt. imposes restrictions on how much stuff you can store. The result? Lack of good and efficient storage means that while farmers throw away produce, or it rots in the godown.
There are many more at http://www.ccsindia.org/RP01_9.html


It does not matter if you have one babu or 100, 100 page document of 1000, there is no way to predict one single price for India, or even a handful of prices of any number of commodities. It has been tried by many govt.s and every one has miserably failed, just like GOI. Read this for why it does not work-- http://www.mises.org/journals/jls/5_1/5_1_2.pdf

Price is simply a signal as to how much needs to be produced of a certain good. If you try to set the prices through control, all you end up with is overproduction or underproduction as is happening today.

See it is very simple, if you think logically. If MSP is below market price, then it is useless. If it is above market price, then it simply results in overproduction. Let me illustrate by example -- Suppose there are 5 consumers in the market. 5 would be wiling to buy a TV at Rs 2000 (which, let us say is the market price), but let us say only 2 will be willing to buy at Rs 4000. Similarly, given the costs let us say manufacturers are willing to produce 5 TVs at Rs 2000, but 10 at Rs 4000. Manufacturers produce more if it fetches more profit.

Now, let us say that Govt. brings in minimum support price for TVs for Rs 4000. What happens? Demand reduces to only 2 TVs, and Producers want to produce 10 TVs. Govt. buys the rest at Rs 4000, at stores them in the godowns. Replace TVs with grains/crops, and you have exactly the same problem



By the way, you eat every day, does that make you a nutritionist? You deal with physical forces every day, does that make you a physicist? You are qualified by these actions to make decision about you personal physical work, or personal eating habits (maybe), but that does not qualify you to comment on physics or nutrition. Similarly a bania might make personal economic decisions everyday, but that does not qualify him to comment on bigger economic decisions.
Last edited by kautilya on 11 Nov 2005 00:30, edited 1 time in total.

George J

Postby George J » 11 Nov 2005 00:03

Any of you agri jingos know about the ruckus of using Genentically Modified Seeds in India? Is it really a problem or just a commie non-problem?

abhisheks
BRFite -Trainee
Posts: 10
Joined: 04 Mar 2005 10:29

Postby abhisheks » 11 Nov 2005 03:51

It used to be a problem when Cargill was new....Raith Sangha Leader Nanjunda Swamy (A problem creator in Karnataka) was the leader of these groups. He died and so did the the problems along with him.

Gerard
Forum Moderator
Posts: 8012
Joined: 15 Nov 1999 12:31

Postby Gerard » 11 Nov 2005 05:29


Santosh
BRFite
Posts: 709
Joined: 13 Apr 2005 01:55

Postby Santosh » 14 Nov 2005 11:35

GJ, the performance of GM cotton has been mixed. It is good in some states like Gujarat while in others like AP it has been devastating. The unemployment scare is in some of the Eastern states as you would expect.

Santosh
BRFite
Posts: 709
Joined: 13 Apr 2005 01:55

Postby Santosh » 14 Nov 2005 12:16

I am sure I have said most of this, I will keep it short.

>> It causes overproduction of certain things like grain, while Indians are moving to a more varied food basket with better economy.

How will the farmer magically know who all is sowing the same crop and how much? The farmers do not even have bijlee and pani forget telephone and internet? Either there should be contract farming thru corporates like Mittal or some GoI portal for info dissemination.

>> It wastes our taxes by resulting in a lot of produce to rot.
Better to let it rot in GoI godowns than farmer's houses.

>> It reduces the purchasing power of a lot of people by making certain food products (items with MSP, or those things that have to be imported) more expensive then they should be.

From economics pov it increases purchasing power of rural India. We need a little sympathy and sensitivity towards the poor who live on Rs7000 a year. Its worth it. But it can be reformed to include marginal farmers and exclude those with huge tracts of land.

>> because there is no integrated market for agriculture in India. Private traders are required to obtain a government permit to transport grain out of a particular state or even district?

All the more reason to dismantle such archaic laws and create a true integrated market before killing MSP

>> govt. imposes restrictions on how much stuff you can store. The result? Lack of good and efficient storage means that while farmers throw

So create open market, quantify demand and improve means of transport and information dissemination. Neither is being done.

>> It does not matter if you have one babu or 100, 100 page document of 1000, there is no way to predict one single price for India

For the nth time, it is not about predicting price or economics. It is about giving the farmer's investment back to him. It is about socialism.

>> manufacturers are willing to produce 5 TVs at Rs 2000, but 10 at Rs 4000. Manufacturers produce more if it fetches more profit.

Oh puhlease. They will produce 10 at 1900 coz volume will fetch them more profits. So much for economics.

>> Replace TVs with grains/crops, and you have exactly the same problem

Yes except that your manufacturer will shut shop but your farmer will die. Manufacturing can't be equated to farming because
1. Farming is traditional and not tech savy. So low yields.
2. Manufacturing invests millions in ERP and market research so is better equipped to handle economics. There are only 10 TV manufacturers in India and they know each others production capacity quality and market. There are 100million farming families and you can't tell who will sow what and how much.
3. Manufacturing depends on a. Capital/Equipment b. Raw Material c. Labor. Farming depends on d. Monsoon e. Pests f. Humidity g. Transportation (coz perishable) apart from a, b & c. So highly unpredictable.

Again, its not about economics. Its about ground realities. Let the GoI create the right environment before MSP is dismantled.

SRoy
BRFite
Posts: 1906
Joined: 15 Jul 2005 06:45
Location: Kolkata
Contact:

Postby SRoy » 14 Nov 2005 13:36

Santosh wrote:Yes except that your manufacturer will shut shop but your farmer will die. Manufacturing can't be equated to farming because
1. Farming is traditional and not tech savy. So low yields.
2. Manufacturing invests millions in ERP and market research so is better equipped to handle economics. There are only 10 TV manufacturers in India and they know each others production capacity quality and market. There are 100million farming families and you can't tell who will sow what and how much.
3. Manufacturing depends on a. Capital/Equipment b. Raw Material c. Labor. Farming depends on d. Monsoon e. Pests f. Humidity g. Transportation (coz perishable) apart from a, b & c. So highly unpredictable.

Again, its not about economics. Its about ground realities. Let the GoI create the right environment before MSP is dismantled.

Santosh,
Allow me to add to your points.
[1] Farmers need to increase crop yields.
[2] Farmers need to cultivate export worthy varities, so that the stuff will not rot in IFC godowns, but can be exported to gain valuable forex.
[3] Small and marginal farmers cannot sustain crops like wheat and paddy, instead they should switch to cash crop/vegetables etc. Recent onion crisis suggest this needs to be done on urgent basis. More earnings per sq. ft. cultivated. Simple.

For GoI: MSP and PDC goes hand in hand. The PDC needs to be revamped to ensure it serves those for whom it is intended to. Regular reports from Orissa, Chattisgarh and few pockets in Maharashtra suggests PDC needs improvement. A truly functioning PDC alone can justify huge foodgrain mountains stacked away in godowns, procured through MSP.

kautilya
BRFite -Trainee
Posts: 46
Joined: 11 Apr 2001 11:31
Location: USA

Postby kautilya » 14 Nov 2005 13:45

Santosh,
Good thing that you agree that there are some problems with govt. rules. You at least agree that we need an integrated market and removal of restrictions on storage limits. In that case you can probably see that some of the problems that govt. is trying to solve using MSP like the “non-availability of cold-storage” and “market imperfections” are the ones govt. itself created. Govt. rules are like the 100 lies a liar has to say to hide a single lie, to avoid being caught.

First, let me just ask you one thing—Do you want to help any farmer, or just poor farmers? If it is just poor farmers, then why just farmers, why not all poor? If your goal is to help the poor, then there are much better ways then MSP. Even handing cash stipends to poor is probably going to be cheaper.

Also, let me tell you what that magic thing is that lets the farmer know what do sow etc., that magic thing is called price. It is the magic that operates in every market that allows everybody to figure out what needs to be done. Since I was not clear enough with the TV example, let me change the example a little bit, and that will probably make it a little bit clearer. This should probably answer a lot of your questions about the magic thing called price and what effect MSP can have. I will also deliberately choose a “low tech example” So, here goes –
First how the magic signal price works –
Let us take the market of milk. Milk can have many uses; people may drink it raw, make curd from it, or make cheese from it (let us ignore any other use for simplicity). Since milk production cannot be increased or decreased instantly on demand, there is generally only a limited quantity of milk to go around in the short term. Let us say, that 1/3rd of the total milk is used for each one of the three uses mentioned.
Let us say that consumers suddenly want more cheese and less curd, then how do the consumers let the producers know? It is actually as you said ”magic” . The demand for cheese in this case will increase and prices for cheese will go higher, as the supply cannot be instantly increased. This will send a signal to the producer of cheese that more cheese needs to be produced, and he will bid for more milk. If the demand for curd or raw milk does not go down by an equivalent amount, the price of milk will also increase. This will send a signal to the milk producers to increase the production of milk. If this higher demand stays for a while the milk producer will buy more cows and increase the production of milk, until the price foes down to a level which makes both producers and consumers happy.

Now let us see the effect of MSP
Let us say that the market has 5 consumers who are willing buy 1 liter each at Rs 10/liter, but only 2 who will buy at Rs 2/liter. Also, let us say that at Rs. 10 / liter milk producers are willing to supply 5 liters. Now, if the govt. declares an MSP of Rs 20 / liter, then suddenly the milk in the market is available at Rs 20 because if a producer cannot sell it for Rs 20 to the consumer then he will sell it to the govt.

Now as we know only 2 consumers are willing to buy at Rs 20, so only 2 liters will be sold in the open market. Rest will be sold to the govt. Also, at Rs 20 per liter, the producer may even be willing to use a cow that was not profitable at Rs 10/liter since it gave very little milk, and he was planning to sell it off for leather etc. Note that in any other industry it would be old machinery or slightly fallow land in farming etc. In any case as we see due to more production being made profitable at higher sales price, more is produced.

So, to conclude as you can probably see that not only did MSP reduce demand, it also increased production. The result is seen in countless countries – Govt. will buy the overproduction, and let it rot, or even throw it away in the sea.

So, let me repeat the ills of MSP in light of above example –

1) It causes overproduction, like in milk
2) It wastes our taxes by resulting in a lot of produce to rot.
3) It wastes the labour of the farmers whose produce is rotting
4) It makes products with MSP more expensive for the buyer

All of the above happened for the milk example.

Hope this clears the confusion. I would still recommend you read the article I linked on why socialism always fails due to the pricing problem. Let me link it here again --
Posing the Problem: The Impossibility of Economic Calculation under Socialism http://www.mises.org/journals/jls/5_1/5_1_2.pdf
Again, its not about economics. Its about ground realities. Let the GoI create the right environment before MSP is dismantled.

Economics is about ground realities. It provides you knowledge about what wil be the consequence of an action. You may still want to go ahead with an action despite the consequences, and that is yiur decision.
But, the good thing is that at least you agree that MSP needs to be dismanteled.



Also, sroy,
It would be cheaper to buy off the market and provid ethrough PDS, or give cash handouts to the poor to buy from the market. Not, that I agree with it, but it is the lesser of the evils. Crop yield and production problems can be solved if govt. allowed free movement and storage of farm goods and contract farming in a big way.
Last edited by kautilya on 14 Nov 2005 22:01, edited 1 time in total.

George J

Postby George J » 14 Nov 2005 21:59

Santosh wrote:GJ, the performance of GM cotton has been mixed. It is good in some states like Gujarat while in others like AP it has been devastating. The unemployment scare is in some of the Eastern states as you would expect.


So its not a problem that farmers are not able to re-seed GM crop? I was speaking to another jingo and he thinks its a problem as farmers dont have the money to buy new GM seeds everytime they re-plant.

Santosh
BRFite
Posts: 709
Joined: 13 Apr 2005 01:55

Postby Santosh » 15 Nov 2005 08:52

George J wrote:So its not a problem that farmers are not able to re-seed GM crop?

It is. But in places where GM crop has been successful farmers have cross-pollinated popular local varieties with GM varieties to get around re-seeding issue. Don't know how widespread the practice is.
Added later: Obviously Monsanto says it's illegal

abhisheks
BRFite -Trainee
Posts: 10
Joined: 04 Mar 2005 10:29

Postby abhisheks » 15 Nov 2005 09:04

So its not a problem that farmers are not able to re-seed GM crop? I was speaking to another jingo and he thinks its a problem as farmers dont have the money to buy new GM seeds everytime they re-plant.


From what I understand, cotton is rarely re-seeded. GM or Non-GM, farmers have always sourced Cotton Seeds from commercial agro companies like Mahyco, ITC Zeneca (I guess it is called as Advanta now), etc.

Someone correct me if I am wrong.

svinayak
BRF Oldie
Posts: 14223
Joined: 09 Feb 1999 12:31

Postby svinayak » 18 Nov 2005 12:29

Big demand for Indian processed chicken

Special Correspondent

Bird flu in South East Asia makes overseas buyers turn to India

Bangalore: The bird flu epidemic in South East Asian nations could be a blessing in disguise for the Indian poultry industry with demands surging from overseas buyers for processed chicken from India.

To meet the rising demand, the country's leading integrated poultry company Suguna Poultry Farm Ltd. is upgrading the capacity of its export plant for processed chicken to double the production from the existing 8 lakh birds per month to 16 lakh birds per month, Coimbatore-based Suguna's Managing Director B. Soundararajan said here on Wednesday.

"India is not affected by the bird flu. It is a blessing for the country," Mr. Soundararajan told presspersons.

With processed chicken prices rising in the global market from about $1,200 per tonne to $1,450 per tonne in the wake of the bird flu, Suguna's export revenues are expected to go up significantly this year from the current level of Rs. 50 crores to Rs. 55 crores, he noted.

Suguna currently produces two crore birds per month for its processed chicken business out of which eight lakh birds are exported mainly to the West Asia and the Gulf under two brand names.

It has a 14.5 per cent share in the domestic poultry meat products market estimated worth 1.7 million tonnes.

Mr. Soundararajan said that Suguna had been growing at a rate of 30 per cent annually, which is way ahead of the industry growth rate of 13 per cent per annum.

It clocked revenues of Rs. 813 crores in 2004-05 and during the first half of the current fiscal, the company's sales touched Rs. 508 crores, registering a growth of 41 per cent from a year ago.

Suguna has hired IBM and Oracle to implement an enterprise resource planning (ERP) package for the company which the IT industry claims to be first of its kind implementation by an integrated poultry company in India, and perhaps anywhere in the world.

Katare
BRF Oldie
Posts: 2579
Joined: 02 Mar 2002 12:31

Postby Katare » 18 Nov 2005 20:44

Wow! A billion $ poultry company in making! :P

SaiK
BRF Oldie
Posts: 36415
Joined: 29 Oct 2003 12:31
Location: NowHere

Postby SaiK » 18 Nov 2005 23:15

sorry.. why are we talking about chickens in agri thread?

abhisheks
BRFite -Trainee
Posts: 10
Joined: 04 Mar 2005 10:29

Postby abhisheks » 18 Nov 2005 23:40

Katare wrote:Wow! A billion $ poultry company in making! :P


Actually Venkateshwara Hatcheries group is number 1 in India. Suguna is probably number 2. So we have two billion $ poultry companies in making! 8)

Shwetank
BRFite -Trainee
Posts: 91
Joined: 12 Aug 2004 01:28

Postby Shwetank » 20 Nov 2005 10:23

sorry.. why are we talking about chickens in agri thread?


..because SaiK, animal farming is classified as agriculture last I checked. Where would you prefer to put it? manufacturing? :P

Vick
BRFite
Posts: 753
Joined: 14 Oct 1999 11:31

Postby Vick » 23 Nov 2005 17:34

Very good happenings from the processed food sector. I firmly believe that if/when the processed food sector takes off, rural agri incomes along with low skilled manufacturing jobs will take off as well on the higher demand.

From FT
Now it's fruit juice for breakfast
By Anita Jain in New Delhi
Published: November 23 2005 02:00 | Last updated: November 23 2005 02:00

After a morning cup of chai, the typical Indian sits down to a heavy breakfast of fried paratha bread, spicy pickle and oil-drenched vegetables, washed down by a glass of buttermilk.

But as Indians adopt a more rushed western lifestyle, breakfast habits too are changing.

Packaged fruit juice, virtually non-existent a few years ago, is now making its appearance at the breakfast table, creating a market that is growing by 50 per cent annually.

"The fruit juice market has gone through a revolution," said Jagdeep Kapoor, chairman and managing director of Samsika, a brand marketing consultancy.

This was also due to growing awareness of health issues and a more sophisticated cocktail culture requiring fruit juice as a mixer.

In the late 1990s, the Indian foods group Dabur India introduced the country's first boxed fruit juice, a hygienic alternative to canned juices and the fresh juice sold by street vendors.

Dabur's fruit juice sales rose 25 per cent in the initial years but have recently seen annual growth of some 50 per cent. "There's been a boom in the last two years," said Amit Burman, executive director of Dabur's food division.

The company, which Mr Burman claims has 60 per cent market share, reported fruit juice turnover of $26.4m (€22.5m, $15.4m) last year.

Dabur's Real brand of nine juices includes orange, mango, guava and lychee, while its Activ brand includes fruit and vegetable combinations.

PepsiCo has been selling a similar range of packaged fruit juices at similar prices under the Tropicana Premium brand since 2001, accounting for 12 per cent of its total business in India.

Abhiram Seth, PepsiCo's executive director of exports, said its citrus farming project in India could reduce its retail price for orange juice, undercutting Dabur.

Mr Burman said, however, that most of Dabur's popular juices were already made from locally sourced fruits such as lychee and guava.

He said sales of these juices were growing by 60 to 65 per cent a year against 20 per cent for orange juice.


Return to “Technology & Economic Forum”

Who is online

Users browsing this forum: Google [Bot] and 9 guests