Agrinews – 04-04-08

HEADLINES:

Business Standard

New Delhi, 3 April 2008

UP to challenge HC order on cane prices

The Uttar Pradesh government is likely to file a special leave petition (SLP) in the Supreme Court challenging the Allahabad High Court order that allowed the Bajaj Group and Basti sugar mills to pay cane farmers the price fixed by the Centre for the crushing season 2007-08. The Centre has fixed the statutory minimum price (SMP) of Rs 81 a quintal, whereas the UP government has fixed a state advised price (SAP) of Rs 125. According to a senior cane department official, the government would first study the HC order and consult the law department on the issue before filing the SLP. Sugar mills in the state had challenged the sugarcane price fixed by the state government for the cane year 2007-08. They argued that SAP was fixed arbitrarily and that similar fixation was quashed by the court in the previous crushing season. However, UP additional advocate general Jafar Naiyer and chief standing counsel M C Chatuvedi contended that fixation of SAP by the state was based on relevant material and economical data. Ravindra Singh, who is representing the UP Co-operative Cane Union Federation (UPCCUF), told the court that the SMP fixed by the Centre was based on outdated reports of Commission for Agricultural Costs and Prices (CACP) and linked to the recovery and not to the remunerative cane price. It does not take into consideration the earnings of sugar mills from by-products such as alcohol, ethanol, etc, Singh told Business Standard. UP is the countrys top sugarcane producer and the second largest sugar producer after Maharashtra and the issue of sugarcane payment figures prominently on the agenda of political parties. According to reports, the UP sugar mills are facing no cane situation due to non-payment of remunerative cane price. Though there has been an increase in the prices of sugarcane by Rs 12 a quintal in the current season, the state has not increased SAP, and since price remains the same, no fresh computation was required while fixing it, Singh added.

Business Line

New Delhi, 3 April 2008

Rice planter machine put on demo in TNAU

The Japanese-made Yanmar rice transplanter (model VP6) was put on demonstration recently in the wetlands of the Tamil Nadu Agricultural University (TNAU). The demo was part of a month-long training/testing programme on the operation of the transplanter organised by the university in different parts of the State. Dr C. Ramasamy, Vice-Chancellor, TNAU, said the transplanter machine will be a boon to the rice farmers as it saved labour and covered larger area in shorter time. He indicated organising a series of trainings to be held throughout the State for the benefit of farmers on this new technology. The completely automated self-propelled six row rice transplanter is powered by a 14-hp engine with two forward and one reverse gear speeds for field travel and is mounted on a set of rubber tyres in the front and traction wheels at the rear. The power-steering system provided in it offers easy operation at small turning radius and can effectively plant 14-day old rice seedlings on one acre per hour, according to Dr A. Sampathrajan, Dean (Agricultural engineering), TNAU. The rotary transplanting picker mechanism with fixed row spacing of 30 cm and adjustable plant-to-plant spacing of 13-28 cm in steps enables transplanting of seedlings at a depth ranging from 0.8 to 4 cm maintaining uniform planting depth. It carries an automatic hydraulic levelling system to keep the transplanting depths constant and row marking and aligning systems to synchronise the subsequent transplanting passes. The most important pre-requisite for using this machine for transplanting is the preparation of special mat nursery on perforated plastic trays. Soil is filled in the trays and seeded using special sowing machines intended for automating this operation. These trays are left in water inundated fields to allow the seeds to germinate and the 14-day seedlings are taken out and fed into the transplanter for planting. In Coimbatore, around 25 entrepreneurs and skilled men were trained on nursery raising technique, the transplanter operation and main field transplanting technique and the demo was conducted by the technical personnel of Yanmar Agricultural Marketing Company from Japan, the TNAU communication added.

Business Line

New Delhi, 3 April 2008

Retail chains in talks to buy Alphonso mangoes

Unexpected long winter, fungal development, rainfall and improper development of the fruit seem to be creating a small panic among Alphonso mango growers in Maharashtra. The season, which usually starts by mid-March and extends up to mid-May, seems to be off to a delayed start this year with the arrival of the mangoes expected in the markets only by April 10. Retail chains Reliance and Subhiksha have already entered into dialogues with the Maharashtra State Agricultural Marketing Board (MSAMB) for supply of mangoes. Sources close to the development said about 800 tonnes has been ordered by these two retail chains. Talks have also started between MSAMB and the farmers for the supply of these mangoes. Trent, the retail chain of the Tatas, is also talking to farmers, though the quantity has not been specified so far. Mr. R.K. Mandal, in charge of exports at APEDA, said this year too the Alphonso will be exported to the Japanese and the US markets. According to statistics made available by MSAMB, last year about 160 tonnes had been exported to the US and this year the target is 1,500-2,000 tonnes. Mr. Mandal said a team from the US was expected during the first week of April to approve of the irradiation facilities in the country. Currently, only the irradiation facility at Lasalgaon in Nasik district has the approval. He added that with many private players having vapour heat treatment facility, exports to Japan would also increase. About 50 tonnes of mangoes were exported to Japan last year and this year at least about 100 tonnes from Maharashtra would be exported to Japan. He said the focus is now on bringing in newer markets into its fold and a team from Australia is expected soon to visit the facilities. According to statistics of 2005-06, about 50,000 tonnes of mangoes were exported to West Asia, Gulf, Bangladesh and Europe. This year, he said, about 75,000 tonnes would be the total export to all the countries. Mr. Mandal said APEDA would be increasing its focus on value-added products. The mango festival organised by the MSAMB will begin in Pune on April 10 and would run till the end of the season.

The Financial Express

New Delhi, 3 April 2008

NMCE kicks off coffee contracts

The National Multi-commodity exchange (NMCE) on Tuesday introduced futures contract in Coffee Arabica and Coffee Robusta, besides other commodities, after receiving approval of the forward Markets commission (FMC). The two new contracts in both the varieties of coffee will expire on July 15 and September 15, 2008 respectively. The delivery centre will be the central warehousing corporation (CWC) warehouse at Bangalore, an exchange release said. NMCE also introduced two new contracts for futures trading in chana on Tuesday which will expire on July 19 and August 20, 2008 respectively. The delivery centre for the commodity will be CWC warehouse in Delhi. The other commodities introduced from Tuesday are sacking, soy oil, turmeric and kilo gold. The maturity date for kilo gold will be August 5, 2008 and its delivery centres are Ahmedabad (basis centre), Chennai, Hyderabad, Jaipur, Kolkata and New Delhi. NMCE provides e-platform for futures trading also in rubber, pepper, guar seed, castor seed, rape/mustard seed, copra, cardamom, turmeric, non-ferrous metals (also called base metals), menthol crystal and raw jute. The maturity dates and delivery centres for will be as follows: sacking on July 15 at CWC in Kolkata, soy oil on July 19 at Indore, turmeric on July 19 at CWC warehouse at Erode and Nizamabad.

The Financial Express

New Delhi, 3 April 2008

Nabard boost for Jharkhand farmers

The National Bank for Agriculture & Rural Development is boosting the formation of farmers’ clubs in Jharkhand. A branch of a rural or semi-urban bank, for example, brings farmers in its area under a farmer club, which can sometimes have as many as 50 members. “The farmers’ club has caught on like a movement. During 2007-08 alone, around 240 such clubs were formed,” Jharkhand Nabard chief general manager KC Shashidhar told FE.

The Hindu

New Delhi, 3 April 2008

Majority of Darjeeling tea to go organic

The Darjeeling Tea Association (DTA) has mounted efforts to increase the production of organic tea so that the majority of the champagne of teas is organically produced by 2010. Industry sources say that at present about 37 per cent of the total crop grown on the slopes of the eastern Himalayas is organic tea, as per certifications given by European and Japanese agencies. Efforts are on now to cover at least two more gardens that contribute 13 per cent of the total yield under the organic cultivation norms, a source at the DTA, the apex industry body, told The Hindu. Given the fact that the annual Darjeeling tea crop averages at about 9.5 to 10 million kg in volume terms, India would be offering around five million kg of the brew as an organically grown product. However, initially the crop would be lower as the conversion process reduces output by half. It takes about three years to convert a garden from conventional plantation to an organic one. This involves not only a total ban on chemical fertilizers and pesticides but there are also restrictions on the use of some natural items. For instance, use of tobacco extracts for pest control, is not allowed, sources said. Pointing out that the movement on organic production of teas started about 15 years ago; the sources said that at that time it commanded a huge premium in the international market with some of them selling at Rs. 10,000 a kg. Japan and Germany were two of the biggest markets for organic Darjeeling tea although the U.K. and the U.S. have also been buying this tea. Countries such as Germany, which imports about 50 per cent of the total Darjeeling tea output (both organic and inorganic), often re-export this to European countries like the Netherlands and Switzerland. At present the queen of brews is grown over an area spanning 7,500 hectares in the Darjeeling district in West Bengal with some of the gardens sprawling across steep slopes sometime at a height of 6,500 feet. There are now 87 tea estates growing Darjeeling tea. However, there is little scope for increasing the output substantially although there is a huge global demand now for teas, especially premium varieties. In the beverage space as well as a nutraceutical, tea is being re-invented. The sources said that the good news was that changes in ownership and taking over of sick gardens bodes well for the Darjeeling tea industry especially as manufacturing processes and practices would improve, but crop might not increase sizably even after the Centres rejuvenation and replantation scheme, the Special Purpose Tea Fund, which has now got under way.

The Financial Express

New Delhi, 3 April 2008

Anti-hail guns to check crop loss

The Himachal Pradesh government is considering of purchasing high-end “anti-hail guns” that have been quite successful in European countries to check crop loss due to hail, the state assembly was informed on Wednesday. Companies from Switzerland and Holland manufacturing the guns have given demonstrations and the state government is deliberating on the matter, horticulture minister Narinder Bragta said in reply to a question. Each gun will cost between Rs 70 lakh and Rs 90 lakh, he said, adding the price could come down if some relaxation was given in customs duty.

The Economic Times

Kolkata, 3 April 2008

Pak tea imports from India to rise in 2008

PAKISTAN is likely to import more tea from India in 2008, with political turmoil in Kenya continuing. Pakistan has already started buying from south Indian auctions and tea industry officials estimate that the country may buy more than 10 million kg of tea from India this year. In 2007, Pakistan had lifted a meager 3.6 million kg from India compared with nearly 11 million kg of imports in 2006. Senior tea industry officials told ET: In 2006, Kenya had faced a severe drought which had impacted the tea crop. At that time Pakistan had imported more than 10 million kg of tea from India. This year too, the Kenyan tea crop is expected to be lower due to the continuing political strife there. Therefore, we are hopeful that Pakistan will import more teas from India. Pakistan is a CTC market and meets its domestic consumption entirely through imports. The size of the Pakistan market is 173 million kg. Kenya is the single-largest tea exporter to Pakistan. There are mainly two kinds of buyers in Pakistan organised and unorganised. Unilever, Pakistan and Tapal Tea Co are the largest organised buyers in Pakistan. Most unorganised buyers are located in the Jodia Bazaar the largest wholesale market in Pakistan. The unorganised buyers are extremely price sensitive and they generally avoid Indian tea as it is priced higher than Kenyan tea. Pakistan buys good quality CTC teas. The officials added Pakistani buyers are slated to send enquiries to north Indian tea producers from May, when new teas start arriving at the auctions. While Pakistan may emerge as a major export market for Indian tea industry, Iran too, is becoming a lucrative market for the industry. The Iran government had raised concerns about quality of Indian tea that was being exported to the country. To sort out the problem, the Iranian government had asked importers there to get registered with the government. Similarly, Indian tea exporters were asked to obtain good manufacturing practice (GMP) certificate from a competent authority, senior Tea Board officials added. Following this, the Tea Board started discussions with the Iran government on this issue. Finally it was decided that Indian exporters will get them registered with Tea Board and will also obtain a GMP certificate from a competent authority. This will give a boost to Indian exports to Iran, which is one of the key markets identified by Tea Board, the Tea Board officials added. In 2007, India had exported 11.28 million kg of tea to Iran.