A NATIONAL SEED GRID TO BE ESTABLISHED
In a move to ensure a regular supply of quality seeds to farmers, who are often duped into buying inferior seeds with adverse results, the Agriculture Ministry of India is planning to set up a national seed grid. The grid is likely to be set up and start functioning by the end of the 10th Plan Period in 2007. According to the Agriculture Ministry, the national seed grid would be set up by “linking all seeds producing agencies at the national and state levels to ensure that seeds are available on demand by the states or farmers”. The grid would provide districtwise information regarding the requirement, production and distribution of seeds through a computerised network.

Besides this a “Seed Village Programme” is also being implemented under the centrally funded Oilseeds Production Programme and the National Pulse Development Programme for the production of certified seeds of oilseeds and pulse crops. “Under the programme, an assistance of Rs 500 per quintal would be provided to seed-producing farmers,” the Ministry said.

NEW LAW TO ELIMINATE ROLE OF MIDDLEMEN
To give the Indian farmers their much-awaited due the government is working on a model legislation that would eliminate the role of middlemen in marketing farm produce thereby enhancing the farmers’ share in the price consumers pay.

The government has framed the legislation for the states to adopt and incorporate the necessary changes in the marketing set-up, said PK Agarwal, a Marketing Adviser in the Agriculture Ministry.

To hasten the process of its implementation by the states, the Central Government is working on an incentive driven reform package to make it more attractive. The Centre has earmarked Rs 195 crore in the 2002-07 Plan to set up better agriculture marketing infrastructure. Under the incentive package being worked out, the government proposes to offer around 25 per cent subsidy to the states for capital investment proposed for the marketing infrastructure. With the amendments enacted by the states, “private and co-operatives would be able to set up competitive marketing infrastructure in the agriculture sector and provide farmers with a choice of where they would like to sell their produce,” Mr Agarwal added.

INDIA STILL USING GLOBALLY BANNED PESTICIDES
The Government of India has admitted that 31 pesticides banned in other countries are still being used in India. These pesticides are used in crops for which they have received recommendation by various registration committees constituted under Section 5 of the Insecticides Act, 1968.

According to the Minister of State for Chemicals and Fertilisers, Chattra Pal Singh, the banning or restricting of pesticides depended on the agro-climatic conditions and agronomic practices of different countries. The government reviewed most of these pesticides by constituting expert committees, which had recommended the continued use of these pesticides, he added.Apart from the 31 pesticides, there are seven pesticides whose use is restricted in India itself. DDT and methyl bromide are in this list of seven pesticides.

AIC PLANS NEW FARM INSURANCE PLAN
The Agricultural Insurance Company of India (AIC) is planning to launch a farm income insurance plan that would save the Centre around Rs 10,000 crore a year. To be launched by April 2004, the scheme would initially cover 13 wheatproducing states in the north and six paddyproducing states including Andhra Pradesh, Assam, West Bengal, Orissa, Tamil Nadu and Karnataka.

According to Suparas Bhandari, Chairman and Managing Director of AIC, every year the Union Government spends approximately Rs 13,000 crore on procuring and maintaining buffer stocks of food grains. It spends another Rs 15,000 crore on purchasing grain stocks from farmers at Market Support Prices (MSP). “We have suggested to the government that AIC will provide an insurance cover against any possible price fall to the farmers’ produce compared with the previous year’s prices instead of the government purchasing stocks by paying MSP every year,” said Mr Bhandari.

The company has proposed that the premium cost for the scheme may be borne by the Central or state governments and a reasonable portion to be provided by the farmers.

According to the current estimates, the government might have to spend about Rs 5,000 crore on paying premium, thus, saving Rs 10,000 crore a year. According to the proposed plan, the AIC would deposit these savings into a ‘catastrophe’ pool and utilise the funds to compensate any losses incurred by the company on the scheme.

FERTILISER INTAKE TO INCREASE IN RABI SEASON
According to a recent report by the Fertiliser Association of India (FAI), the demand for fertilisers would increase in the upcoming Rabi season. The background note brought out by the FAI on the state of the fertiliser industry in India has maintained that since November 15, 2003, the consumption of urea has shown a 3 per cent higher consumption and DAP a 2 per cent higher consumption. “The ample availability of moisture in the soil and a high water level in reservoirs augur well for a substantial increase in fertiliser consumption and food grain production over Rabi 2002-03,” the note holds.

Reportedly, the production of fertilisers had gone down in 2002-03 because of the bad drought conditions, which left little money in the hands of the farmer to buy fertilisers other than urea. The continuing lack of cash in the hands of the farmer in the beginning of Kharif 2002-03 is also a reason why consumption figures were not higher.

ITC AWARDED FOR ITS E-CHOUPAL INITIATIVE
ITC has been awarded the Seagate Intelligent Enterprise of the Year award for the most innovative use of information technology.

According to company sources, the award was given to recognise ITC’s e-Choupal initiative that has enhanced the international competitiveness of marginal Indian farmers by giving them ready access to expert knowledge through a click and mortar model. Reportedly, the e-Choupal is the largest ITbased corporate initiative in rural India, covering 1.5 million farmers in 14,000 villages through 2,700 village Internet kiosks.

From these kiosks, farmers can instantly access vernacular web sites, specific to their crops, and be privy to critical information.

CHINA’S RISING GRAIN PRICES HINT AT A GLOBAL CRISIS
The sudden hike in grain prices in China could be a sign of an upcoming world food crisis brought on by global warming, according to US environmentalist Lester Brown. “World grain harvests have fallen for four consecutive years and world grain stocks are at the lowest level in 30 years. If farmers can’t raise production by late next year we may see soaring grain and food prices worldwide,” said Mr Brown, Director of the Washington-based Earth Policy Institute.

Mr Brown said that the world would face a 96 million tonne shortfall of grain this year following poor harvests in the United States and India in 2002, and a poor harvest in Europe due to scorching temperatures. The decreasing grain output can also be an effect of global warming as increasing scientific evidence reveals that grain production falls when temperatures mount. Studies by the International Rice Institute and the US-based Carnegie Institution have shown that grain production can fall 10 per cent with a 1 degree Celsius (1.7 degree Fahrenheit) rise in temperature, as the increased heat adversely affects plant growth. The UN’s International Panel on Climate Control has also come to the conclusion that global warming from greenhouse gases caused by the burning of fossil fuels will lead to a 2-5 degree Celsius rise in temperature this year.

RICE EXPORTS TO DECREASE IN 2004, REPORTS FAO
A report by the Food and Agriculture Organisation (FAO) of the United Nations, projects a decline in the world rice exports in 2004 because of anticipated lower imports by some of the major buyers.

The FAO’s first forecast of global rice trade in 2004 points to a contraction of close to 6 per cent to 26.3 million tonnes. However, this tentative estimate will be influenced by the outcome of the 2003 paddy crop in Asia, the report cautioned. For the fourth consecutive year, global rice stocks are forecast to fall as consumption is foreseen to outpace production. Developments in China and India continue to be the major factors underlying the worsening of the global stock situation. The deterioration of production outlook in China in 2003 has meant a draw down of stocks. In India too, despite a rebound in crop, inventory level may not expand markedly. Referring to the rice trade in 2003, the report said that, there was a growing evidence that at 27.9 million tonnes, the projected volume of international rice trade in 2003 might come close to the record level of 28.1 million tonnes achieved in 2002, making this year’s exports the second highest on record.

SYNGENTA TO LAUNCH NEW TOUCHDOWN BRANDS
Syngenta has announced its plans to launch two new Touchdown herbicide products in the US for the 2004 season – Touchdown Total and Touchdown HiTech. Touchdown Total is a glyphosate herbicide product containing IQ technology. These new glyphosate-based herbicides have been developed as novel formulations to meet the needs of specific markets. They will be used for herbicide-tolerant systems, no-till weed control, clearing fallow land and applications in the tree, nut and vine markets.

MONSANTO’S GM MAIZE TERMED SAFE BY EU
The European Food Safety Authority (EFSA) has given a clean bill to a type of genetically modified maize produced by Monsanto, assuring its safety for human and animal consumption. The positive assessment of Monsanto’s NK603 maize is only one step toward lifting EU’s 5-year unofficial ban on new genetically modified foods and crops, which have faced intense opposition in parts of Europe. “The panel has concluded that the herbicide tolerant GM maize NK603 is as safe as conventional maize and therefore its marketing for food or feed use is unlikely to have an adverse effect on human or animal health,” said an official of the EFSA. The EU was under international pressure to lift its ban since the pro-biotech US had launched a trade suit, arguing that Europe was acting illegally and without scientific proof.

RUSSIA IMPOSES NEW WHEAT, AND RYE EXPORT TARIFFS
Russia has officially published a government resolution introducing a temporary tariff of 0.025 euros on exports of wheat and rye to cut rising grain shipments. Russia faces a sharp decline in its grain harvest this year million tonnes last year, due to poor weather, and is now reining in exports to ensure that domestic needs are met.

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