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March-April2003  
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Nine-day old Truckers’ strike called off
The nine-day old nationwide strike by the truckers was called off after a settlement with the Union Government. But not before adversely affecting the delivery system and taking a heavy toll on the industry.
Arrivals of fruits and vegetables were hit, leading to spiralling prices, higher freight rates and increased farmer anxiety over stock pile-up. Wholesale tomato prices were nearly doubled to Rs 7.5 per kg from Rs 4 a kg in the Delhi market, while coriander prices jumped to Rs 10 per kg from Rs 4 a kg.Non-perishable commodities like edible oils did not remain unaffected and so did sugar as shipping vessels awaited supply from mills.

Bihar out of bounds for Monsanto seeds
Monsanto India Ltd, a subsidiary of the US multinational, has been barred from selling seeds in Bihar for allegedly marketing substandard products. Sources in the Bihar government said it was under tremendous pressure to cancel Monsanto’s licence because thousands of farmers were demanding compensation after being reduced to penury following the failure of the winter crop. Monsanto is believed to have sold 700 tonnes of seeds for the winter crop, promising farmers yields of 80 to 85 quintals per acre. The actual yield was not even 10 percent of this, according to figures available with the government. Monsanto seeds were planted over 140,000 hectares. The company has been asked to explain its conduct.

Coconut farmers seek relief from pests
The coconut farmers in Andhra Pradesh are sorely disappointed over the cold shoulder treatment that the government has given to the Eriophyd mite issue. The pest has already caused irre-vocable damage to the crops in the state. The Eriophyd mite that originated in Kerala, has now spread in mostly all the southern states.
Addressing an awareness programme, jointly organised by the Coconut Development Board and the State Horticulture Department, R Sundara Rama Raju, President of All-India Coconut Growers’ Association said, “all these states and the Centre should draw up a joint action plan to combat the pest, as it recognises no political boundaries and quarantine zones should be declared to fight it effectively.” He also commented on the unavailability of technical data that could detect how the pest affected the crop in a particular zone. Adding to the above, P Narayana Swamy Naidu, Minister for Horticulture, said till now Rs 3.7 crore had been spent in different districts on combating the mite. He said the drought in the state had also added to the woes of the coconut farmers in the state. He promised relief and added that the necessary steps would be taken to control the mite further.

Budget incentives fail to impress coffee industry
The two sops announced for the coffee sector in the recent Budget – the Price Stabilisation Fund (PSF) and the tax exemption on income ploughed back into development of the estates have failed to offer any solace to the industry.

The industry is sceptical about whether the PSF will work. “It is like offering a drowning man a piece of hay instead of a stick,” said GC Chandramohan, President of the All India Coffee Industry Action Committee. He pointed out that the Rs 500 crore in the fund would be divided between three commodities – coffee, tea and rubber – and as a result the amount that coffee would finally get would be too small.

The scheme is subscription-based, which means that the growers would have invest in it. It is also restricted to small growers. As for the announcement that profits ploughed back into development of the estate will not be taxed, “it is applicable only when you make a profit,” industry sources pointed out.

Punjab, Mahindra ink pact for crop diversification
The Punjab Government signed an agreement with Mahindra & Mahindra for initiating a crop diversification programme. The programme seeks to reduce the state’s existing surplus area under wheat and paddy in favour of alternative crops. Under the agreement signed between Mahindra ShubhLabh Services and the Punjab Agro Foodgrains Corporation, it is planned to bring in an area of up to one lakh acres under contract farming in the current year, which will go up to five lakh acres over the next three years. 

This year’s cotton crop expected to shrink 11%
Insufficient rainfall across the cotton growing areas of the country during the past year can result in a low cotton production. The Cotton Advisory Board has estimated this year’s production at around 140 lakh bales (of 170 kg each), 11 per cent lower from the previous season’s 158 lakh bales. Most of the states, except Haryana, are expected to show a decline in their cotton produce. The fall is also expected to keep the cotton prices firm.

Kerala’s tea trade shows no signs of improving
The problems of Kerala’s tea sector are showing no signs of improving and the woes are being compounded by a drop in output, in addition to the prevailing low prices for the commodity. According to latest figures, Kerala’s tea production has dropped from 69,132 tonnes in 2000-01 to 66,090 tonnes in 2001-02. Productivity has also declined from 1,876 kg per hectare in 2000-01 to 1,791 kg per hectare in 2001-02, forcing several tea plantations in Kerala, mainly in The idukki district, to lay off workers.

Agri exports set to rise this year despite drought
Despite a prolonged drought across the country, last year, the exports of agricultural and processed foods is expected to grow at 20 per cent for the current  financial year. According to the latest data from the Agriculture Produce Export Development Authority the overall agri-exports have been doing well this year. Going by the trend the export may go beyond 20 per cent as against the targeted growth of 15 per cent for the year.

Sri lanka shops for potatoes in punjab
Ceylon and overseas traders from Sri Lanka will be buying 6,000 tonnes potatoes from Punjab Markfed for delivery from April onwards, this year, according to company director N Ganeshan. He said delivery would be made at a fixed price which could be $140 - $150 a tonne after factoring in investment cost, interest rates, seasonal fluctuations in prices and storage overheads.

Andhra Pradesh seeks waiver on crop loans
In view of the failure of monsoons leading to a widespread drought in the area the Government of AP has asked the Central Government to waive interest on kharif 2002 crop loans. The Government of India had earlier announced waiver of interest on crop loans borrowed in kharif 2002 following widespread drought conditions in the country. As per the guidelines issued by Nabard earlier this year, only 20 per cent of the interest on kharif loans has been waived, according to a status report on drought, tabled by the State Minister for Revenue and Relief, Mr P Ashok Gajapathi Raju.

Water shortage hits Andhra farmers
Due to the fall in hydel power generation, farmers in Andhra Pradesh have been advised not to go in for the third crop (Khathera), normally grown during the summer months. For the first time, almost all the reservoirs in the Krishna basin and even in the Sileru complex have dropped below the minimum draw down levels. In view of this, the Andhra Pradesh Transmission Corporation has stated that there will be no hydel power generation available from April 10. This would mean that there would be no power available for agriculture pumpsets.

No more restrictions on sandalwood cultivation
The Government has made relaxations in the century old law relating to sandalwood that restricted the ownership of these trees on private land. With the amendment, the Government hopes to curb the large-scale smuggling which has been depriving the industry of regular supply of raw materials extracted from sandalwood.  According to official sources, the removal of the restriction would help farmers grow sandalwood as a  plantation crop.

No more free power in TN
The Tamil Nadu Electricity Regulatory Commission has ordered that there will not be free supply of power to any consumer in Tamil Nadu hereafter. About 15 lakh farmers and 14 lakh hut dwellers in the state were enjoying free power supply till now. Besides, the Commission has also hiked tariffs for all sections of consumers, with domestic connections and commercial consumers facing the largest quantum of increase.
In a bid to soften the blow the State Government has announced a direct subsidy scheme for small and marginal farmers. For agricultural connections, the commission has said that they will have a six-month billing cycle with the first payment due in September.

Organic farming to get a boost in tenth plan
To promote organic farming in the country, the Union Agriculture Ministry has drawn up a national project on organic cultivation during the Tenth Plan period. The national project would be implemented at a cost of Rs 100 crore.
The main components of the project include framing of standards, negotiating with different countries and forming a system of certification for organic products. Besides promoting the establishment of commercial production units for organic inputs, the plan would also address issues relating to capacity building in this segment.
Under the plan, a National Institute of Organic Farming would be set up with six regional offices including one in Bangalore. The headquarter for the institute would be set up in Ghaziabad while other regional centres would be in Hissar, Jabalpur, Nagpur, Bhubaneswar besides Imphal. 

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