The early onset of India 's southwest monsoon has boosted sowing of oilseed and rice crops in southern areas, which have been receiving widespread showers, weather and farm officials said on Tuesday. They said farmers had stepped up sowing of groundnut and rice in Tamil Nadu, Karnataka and Kerala, which received only scanty rains in the past three years.

"In some areas, farmers have started rice planting and in other areas they have prepared their land and are ready for sowing," said KS Rao of the Central Rice Research Institute. The annual rainfall is vital to the economic health of Asia 's third-largest economy, with the farm sector generating about a quarter of India 's gross domestic product.

Courtesy: Economic Times, 25^th May '04
(Website : www.economictimes.com)

Reserve Bank of India has relaxed NPA norms for agriculture finance and has brought loans for storage facilities under priority sector. Under the new norms, loan granted for short duration crops would be treated as an NPA if the instalment of the principal or interest thereon remains unpaid for two crop seasons beyond the due date, the central bank said in its annual policy statement.

A loan granted for long duration crops would be treated as an NPA if the instalment of the principal or interest thereon remains unpaid for one crop season beyond the due date, it said. RBI said loans to storage units, including cold storage units, wHich are designed to store agricultural produce, irrespective of their location, would be treated as indirect agricultural finance under the priority sector.

Emphasising on securitisation of agricultural loans, it has proposed that investments by banks in securitised assets representing direct (indirect) lending to agriculture would be treated as their direct (indirect) lending under priority sector, provided the securitised loans are originated by the banks and financial institutions.

RBI has prescribed that banks may waive margin/security requirements for agricultural loans upto Rs 50,000 in case of agri-business and agri-business for loans upto Rs five lakh. The micro-finance institutions (MFIs) would not be permitted to accept public deposits unless they comply with the extent regulatory framework of the Reserve Bank.

Courtesy: deepikaglobal.com, 18^th May '04
(Website : www.deepikaglobal.com)

The need for protecting the agro-eco system, particularly on environmentally-sensitive land, is an area that has been intensively explored worldwide. Providing an answer is agro-forestry - cultivating trees alongside crops - which proves beneficial to both the crop as well as the environment, through trees.

And it has taken off in a big way in Punjab too. It is a shaded and a more protected method of farming. Protection, firstly against now common fluctuations in wheat and paddy prices, as well as creation of a more integrated, productive, profitable healthy and sustainable land-use system through what is in effect, twin farming - wheat, or any other crop, grown in alleys between forest plantation. It is called Silviculture. The intentional cultivation of poplar, alongside wheat, enhances the production of either component, while also providing soil conservation benefits.

Introduced in Punjab about four to five years ago, the poplar is sown as an intermediary agro-forestry crop, between April and October. It takes five years for it to rise to a full-grown tree. It is more popular in the fertile Doaba belt of north and central Punjab where it towers over 50,000 acres. Especially on the smaller family farms, agro-forestry can contribute significantly to diversification and rural economic development.

Courtesy: New Kerala, 15^th May '04
(Website : http://news.newkerala.com)

SPURRED by high prices and higher anticipated acreage, global oilseeds output in 2004-05 is projected to set a new record. Significant gains are expected to be recorded by soyabeans in major origins, the US and South America. The projected high production for oilseeds together with growth in palm oil production is sure to send a strong price signal to the market.

Since last October, global oilseeds and vegetable oil prices have been ruling rather strong, despite a delicate balance between the year's production and consumption. However, the progress of planting and eventual crop outturn by September has to be watched. Weather aberrations have often caused yield and output losses as in 2003-04.

In its latest report, the US Department of Agriculture (USDA) has projected global oilseeds production in 2004-05 (October-September) at a record 378 million tonnes (mt), an increase of 42 mt from the current year.

Courtesy: The Hindu Business Line, 13^th May '04
(Website : www.thehindubusinessline.com)

Indian agriculture is bouncing back. It is scripting its own success story, thanks to rising private investment, which will lead to a faster growth. According to Y C Deveshwar, Chairman, CII's Agriculture Council, faster growth in agriculture tomorrow will happen because of rising private investment in agriculture today. The Confederation of Indian Industry (CII) maintains that Indian agriculture can lift its growth rate above the last ten years' average of two percent.

The CII however cautions that it is unrealistic to expect a repeat of last year's double-digit growth in agriculture, despite the forecast of a normal monsoon. However, CII is of the view that in the coming years, Indian agriculture will grow faster than before.

CII's optimism stems from the fact that across India, agribusiness companies are developing new models to reach out to farmers and consumers, providing new technologies, investing more in modern supply chains and in organised food retailing that sells more and more processed food.

According to CII, the surge in private investment is due to increased demand for food and other agricultural commodities. With the income level rising, demand for milk, meat or fish, fruits and vegetables is also increasing. With more urbanisation, Indian families also consume more processed foods, more ready-to-eat foods, etc, says CII. India is becoming a medium-sized agricultural exporter, selling tea, fish, spices and now rice and wheat to foreign countries.

Courtesy: News Today, 3^rd May '04
(Website : http://newstodaynet.com)

Wheat production India is expected to touch around 73m tonnes this year, with inclement weather dragging the output down from previous estimates of a record crop, industry officials and analysts said on Tuesday. Unusually hot weather in northern and central regions in March and unseasonal rains in the north in April had hit the wheat crop, which was shaping up well and had raised hopes of excellent production for the year (July-June), they said.

"We were thinking that output this year will cross 78m tonnes, but now it looks like it will be lower by at least 3.5m tonnes," Jag Shoran, head of the Directorate of Wheat Research, said, adding "We expect production will be between 73 and 74m tonnes."

In a report released on Monday, the US Agriculture Department's attache in New Delhi revised estimates for the '04 wheat harvest down to 73m tonnes due to yield reductions caused by unusually high temperatures during crop maturation. In February, it had estimated output of 76m tonnes. Temperatures in most growing areas in March were five to seven degrees higher than the normal level of 32 degrees Celsius (89.6 degrees Fahrenheit), making it the hottest March in five years.

Courtesy: The Economic Times, 28^th Apr '04
(Website : http://economictimes.indiatimes.com)

India has emerged as the world's largest producer of mangoes and bananas in 2002-03. "India produced 12,000,000 tonnes of mangoes as against the world's total production of 23,455,000 tonnes -- 51.1 per cent," S Dave, director of agricultural and processed food products export development authority said.

Making a presentation on "India's export of table grapes to European Union" to leading British importers at the India House, Dave said the country also topped in the production of bananas with 10,200,000 tonnes as against world production of 58,618,000 tonnes, constituting 17.4 per cent of the whole.

Courtesy: The Economic Times, 21^st Apr '04
(Website : http://economictimes.indiatimes.com)