TECHNOLOGY TO BOOST AGRICULTURE GROWTH BY 4%
Agriculture Minister Rajnath Singh said that the use of cutting edge technologies would ensure an annual 4 per cent agriculture growth rate, which was critical for achieving the 8 per cent GDP growth target under the 10th Five-Year plan. If the targeted rate of GDP of 8 per cent per annum, envisaged under the 10th Five-Year plan is to be achieved and sustained, the agricultural sector also needs to grow at a further rate of four per cent per annum, Mr Singh said.

According to him, to achieve this target advanced technologies need to be used for increasing crop production substantially. Biotechnological approaches in agriculture are expected to provide a powerful tool to alleviate poverty, he added.

INDIAN EXPORTERS TO TAP EUROPEAN BASMATI MARKET
The Government is likely to notify ‘Super Basmati’ as a grade of basmati grown in India, Government officials revealed. The move is expected to help Indian exporters corner a chunk of the European basmati market, largely fed by Pakistan.

Besides, officials were of the opinion that in case the European Union decided to provide duty abatement of €250 per tonne, the Indian exporters would also be eligible for the sop and this would help them compete with their competitors from across the border. It is for this reason that India has decided to brand the rice Super Basmati.

The officials are also contemplated giving the variety a different name. The Agriculture Ministry is expected to notify the new basmati variety soon. Ministry officials said that Super Basmati was not a new variety that had been developed but was already grown in India, particularly in Punjab where the Punjab Agricultural University had released seeds in the state for cultivation. The Central Seeds Release Committee was also being asked to ensure that Super Basmati seeds were available in large quantities in the basmati growing states in north India.

ADVISORY COMMITTEE ON CREDIT FLOW ANNOUNCED
The Reserve Bank of India has announced the composition of an Advisory Committee on flow of credit to agriculture and related activities from the banking system. The Committee under the chairmanship of Professor VS Vyas would assess the progress made in implementation of the recommendations by the expert committee appointed by Nabard in August 2000.

Among the terms of reference, the Committee would suggest measures to reduce the rate of interest on agriculture credit given by commercial, cooperative and Regional Rural Banks. It would also examine the role of Nabard as the apex institution for providing and regulating credit for the promotion and development of agriculture and the role of Regional Rural Banks in purveying agricultural credit.

The Committee would also go into the feasibility for harnessing new technological developments in smoothening the process of credit delivery to the rural and agricultural sector. It would examine the need to regulate micro finance institutions and suggest appropriate regulatory model and norms. It is required to submit its report by April 2004.

FUTURES IN CARDAMOM AND PULSES TO BE LAUNCHED
The National Multi-Commodity Exchange of India (NMCE) will be the first online commodity exchange in the world to launch futures trading in cardamom and pulses, Kailash Gupta, Managing Director, NMCE said. The move to include these commodities will benefit the trading community, exporters as well as the consumer in a big way, Mr Gupta said.

The pulses futures list includes tur, moong, masoor and urad. India, the main producer of cardamom, was the leading exporter until Guatemala took over. Although India has the largest area under cardamom in the world, productivity has been low. A small quantity is exported because of the large domestic demand, India being the second largest consumer of the spice after Saudi Arabia.

Erratic weather conditions have taken a toll on the quality of cardamom produced, pushing up its prices, he said. Central Warehousing Corporation, one of the promoters of NMCE will play a major role in the successful operation of futures trading in pulses and cardamom, by providing access to its vast network of 493 warehouses with storage capacity of 9.3 million tonnes with additional capacities of the State warehouses.

TEA GROWERS CAN EXPECT WORKING CAPITAL LOANS
Finance Minister Jaswant Singh’s Interim Budget provides for formation of a special tea term loan (STTL) which will offer a breather to the tea industry whose credit lines operate on cash credit format. Mr Singh has asked the Indian Banks Association to prepare a ‘revival package’ for the sector. With an exposure of almost Rs 2,000 crore in the tea industry, commercial banks are expected to take a relook at converting all outstandings of working capital into term loans.

This will depend on suitable repayment schedules and interest rates as decided by bankers. The STTL is said to be repayable in five years with a one year moratorium to revive this ailing sector. CK Dhanuka, Chairman, Indian Tea Association said that the details are awaited but it is believed that the banks may consider conversion of working capital to term loans on a case to case basis and charge low interest rates. Fresh working loans are said to be in tandem with the current interest rates. Banks are discussing and depending on the size of the plantation and the requirement will decide on rates.

BIRD FLU TO BENEFIT INDIAN POULTRY EXPORTS TO WEST
The poultry export industry is optimistic that the outbreak of the bird flu (avian influenza) in several parts of Asia could turn into an estimated Rs 700-900 crore opportunity annually for India if managed well. This could be the chance to break into new markets for poultry, meat, eggs and egg products they feel. According to KG Anand, General Manager, Venkateshwara Hatcheries, Thailand alone used to export poultry products worth $500 million per annum.

However, banning of imports from there and its other neighbours like Vietnam by US and EU countries opens a window of opportunity to the domestic poultry industry to capture the lucrative export markets in the western countries. As of now, the poultry industry exports mostly eggs and egg powder, worth Rs 350 crore to Rs 450 crore per annum.

This could go up by as much as 100 per cent in the coming year, if the industry succeeds in marketing itself as an alternative source of supply to the importers in the US, UK and other EU markets, he said.

NEW REGULATIONS FOR AGRI IMPORTS HIT PULSES TRADE
A stipulation by the Union Government that all imported pulses should be fumigated at 28 degrees Celsius has brought the commodity’s shipments in the country to a standstill. This stipulation has come into force from January 1, 2004 after the Centre brought in new phyto-sanitary measures for agricultural imports.

The stipulation has led to cancellation of shipments by exporters, especially from Canada, said PK Raja Sankaralingam, Secretary-General, All-India Chamber of Commerce and Industries, Tuticorin. The new regulation for agricultural imports has led to misunderstandings with sellers besides breach of contract, he informed. The Government came up with new rules for agricultural imports mainly to ensure that alien insects, pests and weevil do not enter the country along with imported goods.

The Government has also laid norms for conditions, especially for quarantine and fumigation, of the farm goods that enter the country. The problem is mainly with purchases of pulses from Canada, Mr Sankaralingam said. To fumigate, the goods would have to be taken to a special heat treated warehouse and it would be a costly proposition, he said, adding that this would lead to rise in import costs of pulses.

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