AGRICULTURAL CREDIT FLOW TO BE REPORTED MONTHLY
The government has directed all public sector banks to submit monthly reports on details of their credit flow to the agriculture sector. The Finance Minister, P Chidambaram, has also called for a special meeting to review the flow of credit to the rural sector.
Nabard indicated that the monthly reports would put the organisation in a better position to assess the credit flow situation.
Last year, only a handful of PSU banks and three private banks could achieve the 18 per cent target. The PSU banks that made the grade include Allahabad Bank, Indian Bank, Indian Overseas Bank, Punjab National Bank, State Bank of Indore, State Bank of Patiala and State Bank of Saurashtra.
The private banks that met the target were ICICI Bank, Ganesh Bank of Karudwadi and SBI Commercial Bank. But now, after the announcement by the Ministry of Finance, more banks are expected to step in and deliver the report. (See cover story on pgs 14-29)

TEA TRADE WITH IRAN EXPECTED TO INCREASE
After the Iranian Government lifted the ban on import of Indian tea, a delegation from that country, has expressed interest in buying orthodox tea cultivated in India.
According to the authorised sources in the domestic tea industry, the ban was lifted about two months ago. The tariff barriers have been reduced to only 82 cents per kg and restrictions on the quantity of imports have been removed.
Iran consumes about 100 million kg of tea in a year, of which 50 million kg is imported.The Iranian Government was forced to ban imports of Indian tea, because of its huge domestic unsold stock. To provide the required help to tea exporters, India Tea Association has created an Indo-Iran Facilitation Tea Cell.

INSURANCE COVERAGE NECESSARY FOR GM CROPS
Dr MS Swaminathan, Chairman, National Commission for Farmers, recently directed that an insurance policy needs to be evolved for genetically modified (GM) crops. This decision stems from the fact that GM seeds and new technology entail enhanced costs and risks.
He also indicated that after the widespread cultivation of Bt cotton, several other GM crops were in the pipeline for seeking clearance for commercial cultivation. This makes it necessary to have an insurance policy for these crops. The National Insurance Policy for Crops and the Farmers Income Insurance Scheme are in their initial stages and cannot cover the risks involved in growing these crops.
The GM seed-manufacturing sector is being globally controlled by private enterprises, particularly by multinationals. These seeds are a costly proposition as a 400 gram packet of Bt cotton costs around Rs 1,200 and approximately two packets are needed for sowing an acre of cotton. The Bt cotton that had been allowed for commercial cultivation in 2002 now covers around 40,000 ha in the country.

NDDB EXTENDS SUPPORT TO SRI LANKA
SAARC and ASEAN countries require substantial quantities of milk products, and this demand is usually met through imports. Various co-operatives and private companies in India are making efforts to enter these markets to exploit the scope available. Keeping this in view, the National Dairy Development Board (NDDB) has offered to assist Sri Lanka in the field of animal husbandry and dairy development. This offer was extended to the country recently, when the Sri Lankan Minister for Agriculture, Livestock, Land and Irrigation visited NDDB, Anand. The export of dairy products from India in the year 2002-03 to the country was 21,440 MT, valued at Rs 153.59 crore.

GM CROPS TO BE CULTIVATED IN INDIA
The government intends to set up a regulatory body by January, 2005, to consider granting permission for the cultivation of geneticallymodified crops in the country. According to the Minister of State for Science and Technology, Kapil Sibal, a simpler regulatory system is being evolved to rapidly speed up the approval or rejection of technologies. This is being done in order to bring in additional choices for farmers as soon as possible.
The government would also devise a necessary intellectual property rights protection system that would cover biotechnological inventions.
In a conference organised by FICCI, International Service for the Acquisition of Agri Biotech Applications and the MS Swaminathan Research Foundation, Union Agriculture Secretary, Radha Singh, promised that the government would contribute to the new initiatives“...to hasten the process of biotechnology applications in agriculture...”.

UPSURGE IN RICE PRODUCTION
The rice production in the country is expected to touch 225 lakh tonnes during the year 2004-05. The estimate was made at a meeting of State Food Secretaries and senior officials of the Food Corporation of India (FCI), held under the ....

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