Unlike last year, area under chillies crop has gone up to over 1.8 lakh hectares of the normal area of 2.3 lakh hectares in Andhra Pradesh, thanks to favorable weather conditions and prevailing high prices of chillies in Guntur market. Consequently, production is also set to up to around five lakh metric tonnes produced during the crop season '02-03. The price is ruling at Rs3,200-Rs 4,000 per quintal in Guntur market.

Courtesy: The Economic Times, 13^th Oct '03
(Website : www.economictimes.com)

In tune with the buoyant indicators, the National Council of Applied Economic Research (NCAER) has projected 7 per cent growth in gross domestic product (GDP) from 2003-04 to 2007-08 in a business as usual (BAU) perspective.

As per the recent Quarterly Review of the economy by the NCAER, the growth is expected to be 7.13 per cent during the current fiscal. Agriculture and services emerge as the major drivers of growth. The farm sector is projected to grow at 7.05 per cent, against a decline of 3.1 per cent during the last fiscal.

Courtesy: The Financial Express, 09^th Oct '03
(Website : www.financialexpress.com)

Asian Development Bank on Tuesday forecast that Indian economy would grow by six per cent in 2003 and 6.3 per cent in 2004. "India leads sub-regional growth with its GDP outlook for 2003 and 2004 remaining at six and 6.3 per cent. Assuming normal monsoon conditions, the economy is projected to grow by six per cent in 2003 with agriculture and services growing at average rates," ADB said in its Outlook for 2003, released on Tuesday in Manila.

Sustained high growth will require higher investments in capacity creation for infrastructure development as well as technology developments for improvements in competitiveness, removal of various rigidities in labour laws and especially, strong fiscal consolidation, it said.

Courtesy: The Hindustan Times, 29^th Sept '03
(Website : www.hindustantimes.com)

Union agriculture ministry on Friday came out with a nine-point programme for raising wheat production during the 2003-04 rabi season.

The ministry has requested the states to make concerted efforts for increasing the wheat production during the current rabi season.

Wheat is the main crop of the rabi season in the country and also an important cereal crop next to rice. The nine-point programme put stress on adequate supply of good quality seeds, timely sowing and popularising the Durum wheat varieties.

Courtesy: The Economic Times, 19^th Sept '03
(Website : www.economictimes.com)

What the drought brought, rains won't take away. The government has "more or less" decided, agriculture ministry officials say, to retain the drought relief bonus of Rs 20 per ton for the minimum support price of paddy. Good monsoons this year could have been grounds for removing the bonus.

For the kharif crop, the MSP for A grade paddy is likely to be Rs 580 per ton and for B grade paddy, Rs 550 per ton. The ministry of finance had reportedly wanted MSPs of Rs 560 per ton and Rs 550 per ton, respectively, for A and B grade paddy.

Courtesy: The Statesman, 26^th July '03
(Website : www.thestatesman.net)

Exports of agricultural and allied products increased to Rs 21,704.46 crore during 2002-03 from Rs 19,388.81 crore in 2001-02, a growth rate of 11.94 per cent.

In dollar terms, agricultural and allied products exports rose to $4.4 billion in 2002-03, an increase of 10.32 per cent from $4 billion in 2001-02.

Exports of rice went up by 66 per cent, wheat by 25 per cent and tobacco by over 22 per cent during 2002-03 in dollar terms, according to latest provisional trade data.

Courtesy: The Economic Times, 17^th July '03
(Website : www.economictimes.com)

A TV channel devoted to agriculture would be launched before October 2 this year, Union agriculture minister Rajnath Singh said.

Speaking at Indian Council of Agriculture Research awards function last night, he said the proposed channel would play a significant role in providing information about the latest scientific achievements to the farmers.

He stressed on the need for a better co-operation between agriculture scientists and farmers in order to take the fruits of agricultural research to the field.

Courtesy: The Economic Times, 17^th July '03
(Website : www.economictimes.com)

India's better-than-expected monsoon rains are likely to boost Asia's third largest economy as a robust harvest could push up rural incomes and drive demand for manufactured goods, economists said.

The weather office said on Wednesday the Southwest monsoon was likely to be normal with rains in July, crucial for crop sowing, expected to be 102 percent of the long-period average.

The monsoon is the lifeline of the Indian economy as the farm sector accounts for 25 per cent of GDP and employs about seven of every 10 people in the country of more than a billion people.

"A good monsoon means a higher income for the farming sector which drives a major chunk of demand," said S D Brahmankar, economist with independent think-tank National Council of Applied Economic Research (NCAER).

Analysts expect the economy to grow around six per cent in the year to March 2004, a view seconded by the central bank. Analysts say low interest rates will also spur demand as consumers take advantage of cheaper financing options. India's interest rates have fallen to historic lows with the benchmark bank rate at a three-decade low of six percent.

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

Govt eyes agri business opportunities in Iraq

The government is looking at massive agri-business opportunities in war-ravaged Iraq, including those for sale of wheat, rice, tea and sugar, the commodities which have a large demand in any humanitarian operation. "There will be demand for foodgrains even in a country ravaged by war and India can export the same in Iraq," Union Agriculture minister said. Opportunity for sale of Indian farm products to Iraq comes at a time when the UN World Food Programme (WFP) has launched the biggest humanitarian operation in its history, food ministry officials said.

Courtesy: The Economic Times, 11^th April '03
(Website : www.economictimes.com)

Onion export quota

The government has extended the export quota validity for onions by three months to ensure that the unused quota does not expire. There is a quantitative restriction on export of onions. Three notified quantums of two lakh tonnes, one lakh tonnes and six lakh tonnes for export were due to expire on March 31, this year. However, it has now been decided that unutilised balance quantity of onions, export of which was sanctioned last April, can now be exported upto June 30, this year.

Courtesy: The Economic Times, 08^th April '03
(Website : www.economictimes.com)

Free Export of paddy allowed

Indian rice farmers can finally experience the pleasure of selling in a competitive market as the government allows free export of paddy from India. This means farmers or their cooperatives will now have the option of selling to foreign millers instead of being wholly dependent on local millers and the FCI for a price.

Paddy or rough rice exports form a sizable chunk of the international rice trade because the grain can be stored for long duration. The US alone ships out more than 20% of its total rice exports as paddy. Indian rice exporters, however, benefit as well because it may now be more cost effective for them to set up a rice mill abroad for processing Indian paddy or rough rice if domestic tax laws do not allow sufficient returns on value addition. Till now, no one could export paddy or rough rice because the government believed it was crucial to encourage only value added exports.

"Farmers can now choose to sell to the highest bidder - the international trader, the local miller, or FCI, depending on who offers the best price. Local millers can no longer afford to be complacent about having a captive supplier base, which will certainly lead to better returns for growers," exporters said.

Similarly, Indian millers may now be able to invest in plants abroad for processing Indian paddy. West Asia, particularly Dubai, may become an attractive destination for Indian rice exporting companies due to its locational and infrastructural advantages.

More importantly, the move provides an escape route for exporters harried by state laws denying adequate input credits. Haryana, for instance, does not allow input credit on paddy used though the rice exported is free of taxes. In such a situation, an exporter can export the paddy and process it more cheaply overseas.

Courtesy: The Economic Times, 01^st April '03
(Website : www.economictimes.com)