Providing greater market access to agricultural products from developing countries would be in the interests of the developed nations, Planning Commission Deputy Chairman K C Pant said today.

Developing countries like India and China were the potential market drivers of the global economy and anything that retarded their growth would have repercussions on the pace of growth and stability of the world economic system, Pant said. He was delivering an address at the Centre for Strategic and International Studies in Washington DC.

"Our estimates show that domestic demand for agricultural products is unlikely to grow at very much more than 3 per cent annually, even if the economy were to grow at 8 per cent. Excess supply of agricultural products can lead to a crash in prices and losses in farmers' income, which can easily nullify any policy incentives that we can provide," Pant said, adding that the solution was to look to external markets for agricultural goods.

With a domestic savings rate of above 24 per cent of the Gross Domestic Produce and non-aid capital flows of nearly 2 per cent of the GDP, a sustained growth of between 6 and 6.5 per cent per annum is likely.

Courtesy: Business Standard, 19^th Nov '03
(Website : www.business-standard.com)

Kharif foodgrains production will touch 103 million tonnes in 2003-04 compared to 90.5 million tonnes produced in the last year, according to the Centre for Monitoring Indian Economy (CMIE) here.

The sowing of kharif rice in southern states was in progress and harvesting was reported in northern parts of the country, CMIE said in its monthly review issued today and added that total foodgrains production was estimated at 208 million tonnes.

The economic think-tank said in August 2003, the index for industrial production (IIP) growth slowed down to 5.2 per cent compared to six per cent recorded in preceding three months.

During April-August 2003, growth in IIP stood higher at 5.6 per cent as compared to 5.2 per cent increase recorded in same period of 2002, it said.

Food products, basic metals, transport equipment, beverages and tobacco, wood products, paper products and miscellaneous industries recorded exceptional growth in this period, it added.

Courtesy: The Economic Times, 10^th Nov '03
(Website : www.economictimes.com)

A new insurance for farmers will be introduced soon to cover yield and price fluctuations under a single policy.

The Farm Income Insurance Programme (FIIP) will be introduced in 23 districts of 18 states for the wheat and rice crop in the Rabi season. The policy is an improvement over the existing National Agricultural Insurance Scheme which covers yield discrepancies only.

Based on the results of the pilot project, the FIIP will be fine-tuned for formal launch in Kharif 2004, Agriculture Minister Rajnath Singh said today at a meeting of the consultative committee. The Agriculture Insurance Company of India will handle the policy.

Under the FIIP, a farmer's yield and price risk would be protected by ensuring minimum guaranteed income. A premium subsidy of 75 pc is proposed for small farmers, while others would get 50 pc.

The programme will be available in all states and be compulsory for farmers availing seasonal agricultural operation loans. The NAIS will be withdrawn for crops covered by FIIP, but would continue to be applicable for others.

Courtesy: The Indian Express, 5^th Nov '03
(Website : www.indianexpress.com)

The consumer will have to pay Rs 0.06 extra for every kg of sugar purchased from now on, following a Union Cabinet decision on Friday to beef up the Sugar Development Fund (SDF). For that, the government plans to increase the cess on both levy and non levy sugar by Rs 6 per quintal - bringing the cess to Rs 20 per quintal from the current Rs 14 per quintal - for sugar mills. In addition, it has been decided to hike the countervailing duty for sugar imports from Rs 85 per quintal to Rs 91 per quintal.

Courtesy: The Economic Times, 06^th Oct '03
(Website : www.economictimes.com)

India expects its coffee output in the crop year to September 2004 to be around 275,225 tonnes, showing a marginal drop from the current year, a spokesman for the state-run Coffee Board said on Sunday.

The crop in the current coffee year is estimated at 275,275 tonnes, down from 300,600 tonnes the previous year as a result of a drought last year. Pre-monsoon rains in the current year have also fallen short of expectations, and growth is set to remain flat, officials say.

"The 2003/04 crop is expected at 275,225 metric tonnes. It is almost unchanged," the Coffee Board spokesman said, referring to the post-blossom estimate based on surveys of plantations. The figures were released at the weekend. India is estimated to have produced 102,125 tonnes of arabicas in 2002/03 and 173,150 tonnes of robustas.

Courtesy: The Economic Times, 22^nd June '03
(Website : www.economictimes.com)

Palm oil prices to dip as exports to Middle East hit

Palm oil prices are expected to suffer a further set back this season, as its exports to the Middle East and European countries have been hit by the Iraq war. Additionally, India the larger buyer is unlikely to boost its purchases despite lower domestic production due to drought condition. Tight global edible oil supplies pushed up palm oil prices to an average of 1,364 ringgit ($358,95) a tonne compared with 895 ringgit in '01 , representing a 52.4% increase. During current year, Indian imports as well as prices are expected to be lower than earlier estimates as Indian demand is more price sensitive.

Courtesy: The Economic Times, 27^th March '03
(Website : www.economictimes.com)