01.07 - agritech.tnau.ac.inagritech.tnau.ac.in/daily_events/2016/english/July/01_jul_16_eng.pdf ·...

01.07.2016

Heavy rains hit Uttarakhand

Officials said a cloud burst in Pithoragarh inundated the entire region, causing

problems to the people.

Heavy rains have continued to pound the hilly areas of Uttarakhand on Friday.

Officials said a cloud burst in Pithoragarh inundated the entire region, causing

problems to the people.

Large tracts of agriculture fields were destroyed in Suva village of the

Dharchula area and three bridges linking the village have been washed away.

Over 54 mm rain was recorded here in the last 24-hours.

The Thal-Munsyari road has been cut-off and dozens of vehicles remained

stranded on both sides.

The Yamunotri highway, near Kharadi, has also been damaged leading to traffic

being halted.

Entry of heavy vehicles was halted on the Kedarnath highway after a landslide

at Gangolgaon.

All major rivers in the hilly tracts have swollen.

Aquatic quarantine facility to come up in Vizag, Nellore

The idea is to encourage farming of L. Vannamei

Vannamei has become popular among exporters due to its demand in Europe,

the U.S. and other areas.

: In a shot in the arm for aqua farmers, the Marine Products Export

Development Authority (MPEDA) and the Andhra Pradesh government will set

up two aquatic quarantine facilities in Visakhapatnam and Nellore to encourage

farming of L. Vannamei, a brood stock imported in large quantity.

Also known as white-leg shrimp, Vannamei has become quite popular among

exporters due to its demand in Europe, the United States and other areas.

It is priced less than tiger and other export-centric shrimp and is known for its

high culinary value. A.P., which has 974-km coastline, the largest after Gujarat,

is the leading exporter of seafood in the country.

“We will shortly open world-class testing labs along with other facilities in

Visakhapatnam and Nellore – two leading seafood export centres,” Minister for

Agriculture and Marketing Prathipati Pulla Rao toldThe Hindu . The facilities

will have quarantine cubicles, full-fledged labs to screen pathogens, fumigation

chamber and trucks to transport the brood stock with thermo-controlled

insulation. At present, for want of testing facility, farmers from AP are

depending on Chennai to conduct the tests. L Vannamei testing lab was

introduced in Cehnnai in 2009 by the MPEDA, which is under the Ministry of

Commerce. Coastal Aquaculture Authority is the agency which regulates the

breeding of Vannamei. Visakhapatnam, as per a report prepared by the

MPEDA, was the largest seafood landing centre for exports with the

consignments sent from Visakhapatnam Port during 2014-15 valued at Rs.7,578

crore.

“With white shrimp culture becoming popular, achieving our export turnover of

$6 billion by 2020 will become easy once the quarantine facilities come up in

Visakhapatnam and Nellore. We also wanted one more set up in Kakinada,”

said Federation of Indian Fisheries Industries president Y.G.K. Murti.

Frozen shrimp formed 67.19 per cent of seafood exports worth Rs.33,441 crore

during 2014-15. The industry has been demanding development of cold storage,

value addition and airlifting of tuna and other high-value sea-captured fish from

Visakhapatnam International Airport to increase foreign exchange earnings.

Kolar mangoes make the U.S. cut

After facing several rounds of rejection by the U.S. over norms pertaining to the

export of mangoes, 20 tonnes of the fruit finally left for Phoenix in the U.S.

from Kolar on Thursday after officials from the U.S. Department of

Agriculture-The Animal and Plant Health Inspection Service (USDA-APHIS)

personally verified the quality of the mangoes.

With this, Kolar’s mangoes — Banganapalli, Dasheri, Alphonso and Kesar —

joined other varieties of mangoes that the U.S. imports from 30 countries.

Karnataka’s mangoes were rejected earlier for not meeting international plant

quarantine stipulations, post-harvest management, and packing specifications. It

took some time to address export issues and have officials come together from

various departments, such as the Karnataka State Mango Development

Corporation, Department of Horticulture, NPPO, APEDA, Innova Agri

Biopark, and the U.S. Embassy for putting in place U.S. specifications.

“We visited the mango farms in Kolar for inspecting the fly and insect tackling

methods practised by farmers as each batch would be labelled for further ties to

be in place.

We are happy with the plant quarantine methods as gamma irradiation facilities

not only improves the shelf-life of the mango, but brings in properties that are

good for health,” said a senior certification officer of USDA-APHIS.

Kolar is the largest mango growing district in the State.

Workshop on govt. schemes

The National Bank for Agriculture and Rural Development on Thursday

organised a workshop on various schemes sponsored by the Union government

with a specific emphasis on promotion of solar photovoltaic water pumping

systems.

Ramesh Tenkil, CGM, NABARD, in his inaugural address, urged banks to

create awareness about various schemes among entrepreneurs and farmers. He

also advised banks to prepare an action plan for promoting solar pump sets in

the State.

A brief presentation on the schemes was made by Department of Refinance.

Representatives from Commercial banks, co-operative banks, Kerala Gramin

Bank, ANERT and other stakeholders participated in the workshop.

Seed processing unit capacity enhanced

The seed processing unit at the State Seed Farm premises in Tirukadaiyur near

here is being expanded in the wake of increase in the volume of seeds being

produced by farmers in and around the Vennar sub-division in the district.

An old processing unit with old machinery had got outdated in terms of its

efficiency and handling capacity, forcing the Agriculture Department to go in

for a processing centre with enhanced capacity.

The per hour seed handling capacity of the new unit will be enhanced from the

present 600 kg to 1.2 tonnes.

The new unit had been built at an estimate of Rs. 52.25 lakh – Rs. 22.25 lakh

towards building and Rs. 30 lakh for the machinery sanctioned under the

National Agriculture Development Programme.

“The new unit will cater to the needs of farmers producing paddy, green gram

and black gram in the Vennar sub-division comprising the Sembanarkovil,

Tirumarugal, Keezh Velur, Keezhaiyur, Thalaignayiru, Vedaranyam, and

Nagapattinam.

Collector S. Palanisamy said the enhanced capacity of the unit would facilitate

assured supply of quality seeds to farmers.

Dairy farmers seek their due

The various unions of dairy farmers in the district organised a meeting under the

aegis of the Andhra Pradesh Rythu Sangham to chart their course of action over

pending demands.

District secretary of the CPI(M), Mr. Rambhoopal, said the government had

clearly demonstrated a lack of concern for the welfare of dairy farmers in the

district and across the State by not paying bills for the milk collected to the tune

of Rs. 14 crore.

“The farmers were advised to go in for dairy farming turning their land

holdings, wherever available, into grasslands to feed the animals. The money

given by the A.P. Dairy is the only source of income for the farmers’ families,

and now even that is not being given,” said Mr. Rambhoopal. It would be

prudent to feed the empty stomachs of the dairy farmers rather than dishing out

incentives to contractors, he added.

The representative of the Congress and INTUC district president M.V. Ramana,

president, said protesting and fighting for their rights was the only way to

realise the rights of the dairy farmers.

2.50 lakh water harvesting pits to be dug in State

The State government has prepared plans to dig 2.5 lakh water harvesting pits,

said Dinesh Kumar, Special Chief Secretary of the Department of Rural

Development. He reviewed the annual targets for DWMA and DRDA officials

of Chittoor, Kadapa, Nellore, Anantapur and Kurnool districts, along with Rural

Development & Panchayat Raj Commissioner B. Ramanjaneyulu and Chittoor

Collector Siddharth Jain here on Thursday. He fixed the outlay at Rs. 500 crore

for the mammoth task to be completed ahead of the monsoon. The government

has fixed an ambitious target of laying 5,000 km of cement roads, digging 6.05

lakh farm ponds under ‘Panta Sanjeevani’ and building five lakh individual

toilets under the employment guarantee scheme for the current financial year.

Farmers happy as level goes up by two feet in Periyar dam

Cumbum Valley farmers expect officials to release water for irrigation

A view of the Periyar dam.— File photo

With heavy downpour in the catchment areas, water level rose by two feet in

Periyar dam in the last 48 hours, bringing cheers to the farmers in Cumbum

Valley.

On Thursday, water level stood at 113.8 feet in Periyar dam, which was 111.9

feet on Tuesday. Inflow into the dam shot up to 2,554 cusecs from 250 cusecs.

Public Works Department stepped up discharge to 250 cusecs from 100 cusecs

in order to improve storage level in Vaigai dam and to meet drinking water

needs of the panchayats and town panchayats in the district.

With no rain in the catchment area, water level stood at 27.82 feet in Vaigai

dam. The inflow was 153 cusecs the discharge was restricted to 60 cusecs.

The farmers in Cumbum Valley were jubilant as the sharp increase in Periyar

dam level would make PWD officials release water for irrigation. Further delay

in releasing water for irrigation would postpone harvesting period and standing

crops would be affected by rain, the farmers said. Normally, water would be

released from the dam for irrigation on June 1.

Several farmers in head areas of Cumbum Valley, especially in Gudalur,

Cumbum and Uthamapalayam, who had groundwater sources, had raised

nurseries and prepared the land for transplantation. But the farmers in tail-end

areas had not started any work, they said.

Meanwhile, the PWD officials have been rehabilitating supply channels in

Uthamapalayam, Chinnamanur and Margaiyankottai areas. Concrete apron has

been laid on the channel bed to prevent seepage and for optimum utilisation of

water.

While the farmers in Cumbum Valley welcomed the rain, cardamom growers

did not welcome it as it would affect cardamom plants. Cardamom needed rain

in the first and the second weeks of June. But delayed monsoon destroyed

flowering of plants. Moreover, heavy downpour led to attack by rot disease.

Destruction of flowers would ultimately affect yield, said cardamom growers.

Kallarkutty dam shutters opened

Rain and wind continued to lash Idukki district on Thursday. Two shutters of

the Kallarkutty dam were lifted following heavy rain.

The shutters of the dam, with a total storage level of 457 ft, were opened when

the water level reached 456.45 ft. The officials said more shutters would be

opened if the rain continued.

The average rainfall recorded on Thursday in the district was 31.6 mm with

Devikulam taluk recording 50.4 mm and Thodupuzha 18 mm.

Isolated incidents

Though officials at the district disaster management cell claimed no damage to

crops and houses, isolated cases of landslips and uprooting of trees were

reported from high range areas.

The work on cardamom estates was hit for the fourth consecutive day on

Thursday.

Banks asked to open more rural branches

MP asks banks to be liberal in lending loans to SHGs

R. Dhruvanarayan, Chamarajanagar MP, on Thursday asked banks to open

more branches in rural areas of Mysuru district to cater to the needs of villagers

and to facilitate transactions in the wake of the launch of various welfare

schemes.

The MP was speaking at the tri-monthly progress review meeting convened by

the district lead bank, which was attended by representatives of nationalised and

private banks and officials from various departments. Deputy Commissioner C.

Shikha, ZP chief executive officer P.A. Gopal, and lead bank manager K.N.

Shivalingaiah were present.

Responding to the MP’s suggestion, Mr. Shivalingaiah said that out of the 507

bank branches in the district, 166 are functioning in rural areas.

Reserve Bank has already instructed that branches be opened in all villages with

a population of 5,000 and above by March 31, 2017. Accordingly, steps have

been taken to open 14 branches shortly, he said.

Mr. Dhruvanarayan told bank officials to be liberal in lending loans to self-help

groups (SHGs) that have been prompt in repayment. Mr. Shivalingaiah said the

loan recovery from SHGs was 97 per cent last year and stands at 80 per cent this

year.

The MP also brought up the complaints received from SC/ST beneficiaries that

banks were delaying or not releasing the loan portion after funding the subsidy

portion under schemes meant for them.

Mr. Shivalingaiah asked the banks to bring to his notice any problems they

come across in lending of loans.

The MP also told banks to ensure progress in lending under MUDRA (Micro

Units Development and Refinance Agency) scheme. Mr. Shivalingaiah said the

progress under MUDRA has been good but called on banks to take steps to

ensure complaint-free lending.

He also recalled the complaints from Mysuru MP Pratap Simha at the last

meeting on rejection of loans under MUDRA by some banks.

Meanwhile, bank representatives said 2,88,191 Jan Dhan accounts have been

opened in over 27 banks, including private banks, in the district. The most

number of accounts is in State Bank of Mysore.

DC’s message

With only a month left for registration under Pradhan Mantri Fasal Bima

Yojana, a crop insurance scheme, Deputy Commissioner C. Shikha asked the

district lead bank to educate farmers about the scheme. At a meeting with bank

officials and heads of the departments at the zilla panchayat auditorium, she

said farmers can avail insurance cover under the scheme. The last date for

registration is July 30.

Chandigarh: With 3,000 varieties of fruit on display, Mela to

open tomorrow

The two-day Mango Mela is being jointly organised by Haryana Tourism with

the state Horticulture Department.

AS MANY as 3,000 varieties of mangoes will be showcased at the 25th edition

of Mango Festival, which will begin at Pinjore Gardens from July 2.

The two-day Mango Mela is being jointly organised by Haryana Tourism with

the state Horticulture Department. It is set to witness participation of a number

of mango growers from Haryana, Punjab, Uttar Pradesh, Himachal Pradesh and

Uttarakhand. Prominent commercial mango varieties which will compete at the

mela include Dasheri, Chausa, Langra, Amarpali, Bombay Green (Malda),

Ratol, Malika and Ramkela (a pickle variety).

The event will be inaugurated by Haryana Tourism Minister Ram Bilas Sharma.

Minister of State for Agriculture Bikram Singh Yadav, Chief Parliamentary

Secretary (Tourism and Hospitality) Seema Trikha, and Kalka MLA Latika

Sharma will be present on the occasion.

Speaking during a press conference, Haryana Tourism Corporation managing

director Sameer Pal said that the main objective behind organising the festival is

to encourage growers to adopt the latest practices to increase mango production

and quality, so that they may get maximum return from their produce by tapping

domestic and international market.

Counted among major cultural events of the region, the 25th Mango Mela will

include various competitions for school students, cultural performances, a crafts

bazaar and a multi-cuisine food court.

A sound, sight and light show will be held at 6.30 pm on July 2 on the life of

Baba Banda Singh Bahadur, commemorating the 300th year of martyrdom of

the great Sikh general. Renowned Punjabi Sufi singer Satinder Sartaaj will

perform on July 3 (Sunday) from 6.30 pm onwards.

The receipt of entries of mangoes and mango products will start from 7 am

onwards on July 2. Various competitions for students like solo dance, rangoli,

face painting and mango eating (open for all) will start from 10 am.

A seminar on mango cultivation technology will be held at 9.30 am on the

second day, followed by competitions for students like group dance and

drawing.

There will be performances by artistes from North Zone Cultural Centre,

Patiala.

As part of corporate social responsibility initiative, the Haryana Tourism has

invited differently abled students to visit the Mango Mela on July 2 and senior

citizens from registered senior citizen societies of Panchkula and Chandigarh on

July 3. They will be allowed free entry and also served complimentary lunch.

The crafts bazaar will showcase handlooms and handicrafts by

craftspersons/weavers from Haryana, Punjab, Himachal Pradesh, Jammu

andKashmir, and Rajasthan.

Crop insurance: Rs 2,450 cr to 4 worst-hit Marathwada districts

Govt has disbursed Rs 4,205 cr as crop insurance — the highest ever — across

the state, giving relief to 1.13 cr farmers

“Under the crop insurance, 82 lakh farmers have already been given the funds.

The process of bringing the remaining would be completed in the next few

weeks,” according to reports from the ministry of agriculture.

The four worst-hit districts of Marathwada have cornered more than 50 per cent

of the total Rs 4,205 crore funds under the crop insurance loan for the year

2015-16. The crop insurance funds, which have already been deposited in the

accounts of the farmers, have provided the much-needed relief to the farmers of

Marathwada facing drought for the fourth consecutive year.

The crop insurance disbursed is highest in Beed district (Rs 893 crore), Latur

(Rs 604.59 crore), Parbhani (Rs 488.65 crore) and Osmanabad (Rs 465.51

crore). The total crop insurance allocation in these four districts comes to Rs

2,450.75 crore out of the total Rs 4,205 crore given to farmers across

Maharashtra. The crop insurance has helped the government provide relief

to 1.13 crore farmers covering 74 lakh hectares of land.

Notwithstanding the delay in arrival of the monsoon across the state, progress in

the crop insurance disbursement appears to have equipped the farmers with

funds that would help them meet the challenges of agriculture in the kharif

season.

“Under the crop insurance, 82 lakh farmers have already been given the funds.

The process of bringing the remaining would be completed in the next few

weeks,” according to reports from the ministry of agriculture.

The new guidelines of the Centre under the Pradhan Mantri Fasal Bima Yojna,

which allows crop insurance to farmers for both pre- and post-harvest crop

losses, is being aggressively pushed by the state to restore the confidence of

farmers, especially in the 14 worst drought-hit districts.

Apart from water crisis (hydrolic drought) in 15,500 villages, there was

agriculture drought in 12,500 villages. Thus, 28,000 villages out of 40,000 were

facing drought.

While acknowledging the need for greater investments to help farmers become

self-reliant, Chief Minister Devendra Fadnavis said, “The allocation of Rs 4,205

crore under crop insurance is highest ever the state government has provided in

one year.”

Putting it in perspective, he said, “In the last 15 years, the total funds released

under National Crop Insurance was Rs 4,737 crore. While we are not here to

walk the credit, all I can reassure is that my government is absolutely committed

to the welfare of the farmers of Maharashtra.”

Last week, the state government cautioned farmers not to rush sowing and wait

for the full-fledged monsoons to arrive in their respective districts.

Another significant decision relates to increase of fresh crop loans by 31 per

cent this year at Rs 54,000 crore from last year’s Rs 40,000 crore.

In view of reports of lackadaisical approach of district cooperative banks to

allocate fresh crop loans to farmers for kharif has prompted the government to

urge NABARD to intervene in the matter. The chief minister has also taken up

the issue with Union Finance Minister Arun Jaitley.

The regionwise crop loan disbursement shows 29 per cent increase in the cotton

belt of Vidarbha region. In terms of funds, it has increased from Rs 8,423 crore

(2015-16) to Rs 10,842 crore (2016-17). In Marathwada, it would be a 37 per

cent increase in crop loans. The amount has risen from Rs 9,193 crore to

Rs 12,578 crore; in Western Maharashtra (including parts of North

Maharashtra) it shows a 37 per cent (the highest) increase. The funds have been

hiked from Rs 21,831 crore to Rs 28,778 crore. In Konkan, it is marginal, from

Rs 1,078 crore to Rs 1,134 crore.

The ministry of agriculture has already made the provisions on both seeds and

fertilisers. Their estimate is, the total seeds required would be 14 lakh quintal.

But they have stocked 17 lakh quintals.

Performance audit: Crop insurance schemes in 9 states under CAG lens

Reserve Bank asks lenders to provide access to all related records to the auditor.

The government recently launched the Pradhan Mantri Fasal Bima Yojana

(PMFBY), a uniform ‘one nation-one scheme’ type crop insurance scheme.

(File photo)

The Comptroller and Auditor General (CAG) will conduct a performance audit

of crop insurance schemes in nine states to examine the efficacy of providing

relief to farmers in the event of crop damage.

The performance audit will include examination of records of Department of

Agriculture Cooperation and Farmers Welfare, Agriculture Insurance Company

of India Limited, State Agriculture Department and other departments, the RBI

said while asking banks to provide access to related records to CAG.

“This audit is proposed to be conducted in Andhra Pradesh, Assam, Gujarat,

Haryana, Himachal Pradesh, Odisha, Maharashtra, Rajasthan and Telangana

with the help of the offices of the Principal Accountant General/Accountant

General (Audit) in the respective states,” the RBI said.

As crop insurance schemes are being implemented with the help of various

banks, insurance firms and co-operative institutions, examination of the records

of these organisations is necessary to ascertain whether schemes are being

implemented effectively, it said. “In view of the above, you (banks) are advised

to facilitate access to your records pertaining to crop insurance schemes to the

audit teams,” the RBI said.

The government recently launched the Pradhan Mantri Fasal Bima Yojana

(PMFBY), a uniform ‘one nation-one scheme’ type crop insurance scheme. The

size of the crop insurance which is currently around Rs 5,000 crore is likely to

double in a year. “Currently we have around 23 per cent of the farming

community under the existing insurance scheme. This is expected to rise to over

50 per cent with the launch of the new scheme in the next three years,” a top

insurance sector official said.

Under the National Agriculture Insurance Scheme, 5.91 crore farmers benefited

and claims of Rs 33,329 crore were handled till 2014.

‘Help farmers hit by calamities’

Mumbai: The RBI has asked banks “to act with empathy” in view of the

difficulties faced by farmers in areas affected by natural calamities. Banks have

been asked to consider restructuring and granting fresh loans without waiting

for the receipt of the insurance claims, in cases where there is reasonable

certainty of receipt. ENS

West Bengal govt proposes lab to check cause of fish diseases

Government officials said that ever since the late 1980s, when the white-spot

disease wiped out the entire scope for prawn cultivation in the South 24

Parganas.

The West Bengal government has proposed a new laboratory that will identify

the causes of various diseases affecting the fish population.

With prawn cultivation in South 24 Parganas nearly wiped out due to the white-

spot disease that has been affecting the species since the late 1980s with no sign

of control,

the government realised the need for a laboratory to carry out research work

with the “sole aim” to learning about the causes of the disease.

Government officials said that ever since the late 1980s, when the white-spot

disease wiped out the entire scope for prawn cultivation in the South 24

Parganas.

“In the past, there was no government agency dedicated to finding out the root

cause of such diseases.

Crores of rupees have been lost due to the prawn cultivation taking a hit with

farmers incurring huge losses,” an official said.

It was learnt that the food given to the prawn underlings were “unsuitable”,

resulting in infections.

“It has been decided that alongside prawn, Indian carp will also be released,

which would help tackle the problem in the future.”

The new lab will not only carry out the necessary research work to identify any

infections but also test the soil in the area where the seed for the Indian carp is

to be released.

“A large chunk of fish in the state comes from Andhra Pradesh and if there is

strike or something, the supply is affected and there is crisis in the city and state

markets.

Steps have been taken to make the state self-sufficient in fish production,”

added the official.

The lab will come up on a 10 acre-plot of land at Chakgeria in South 24

Parganas district, an official informed.

7th pay commission payout: Domestic boost amid global volatility

Windfall for govt employees coupled with better crop in rural India is likely to

revive consumption which had collapsed over the past couple of years.

The announcement had a bearing on the markets and the benchmark Sensex at

the Bombay Stock Exchange gained 475 points or 1.8 per cent over the last two

days. (Illustration: CR Sasikumar)

On Wednesday, the Union Cabinet chaired by Prime Minister Narendra

Modiapproved implementation of the 7th Pay Commission that had

recommended an overall hike of 23.5 per cent in salaries.

The announcement had a bearing on the markets and the benchmark Sensex at

the Bombay Stock Exchange gained 475 points or 1.8 per cent over the last two

days, thereby regaining the losses it incurred following Britain’s decision to exit

the European Union in a referendum concluded last week.

While the government projected that it would be spending an additional Rs 1.02

lakh crore annually on account of the increased salary and pension payout, it is

estimated that the outgo for this year will amount to around Rs 72,000 crore in

terms of additional pay and pension to around 1 crore individuals. This

compares with roughly Rs 40,000 crore of extra annual spending by the

government during implementation of the 6th Pay Commission’s

recommendations.

Experts say that the government’s decision to implement the recommendations

of 7th Pay Commission without any change has enthused the markets as it will

provide a fillip to the economy by way of a rise in disposable income at the

hands of individuals and a boost to overall consumption.

It is also expected to benefit the consumption oriented sectors in a big way.

“For the mid-income category, the basic expenses account for roughly 40 per

cent of the salary and hence a rise in income will lead to an incremental

discretionary spend.

The biggest beneficiaries will be sectors such as housing, private transport,

consumer durables and jewellery,” said Pankaj Pandey, head of research at

ICICI Securities.

The sentiments are also on the rise as the rural demand may also witness a pick-

up on account of a good monsoon expected this year and the factors together —

the windfall for government employees and better crop in rural India — may

prop up the economy.

The 7th CPC should also push the GDP growth. While government officials

said that the dole out will have an impact of 0.7 per cent on the gross domestic

product (GDP), a report prepared by Kotak Research pointed that while the

consumption stimulus will be 30 basis point (100 basis point is 1 per cent),

savings and tax revenue will have an impact of 17 and 9 basis points,

respectively, on the GDP.

“The consumption stimulus is only 30 bps of GDP in FY17 from the Central

government’s 7th CPC implementation after taking into consideration

pensioners’ behaviour, tax incidence and saving propensity.

This will be positive for urban consumption and will push up demand for

consumer durables.

Additionally, with a normal to above normal monsoon and a consequent higher

crop output, India could also see rural consumption getting some boost. This

will likely be the second consumption driver for the economy over FY17-18E,”

said the Kotak Research report.

Apart from urban consumption, rural consumption is also expected to pick up

going ahead on a number of factors.

“A good monsoon alongside the recent increase in MSP (minimum support

price) is likely to revive rural demand, which had collapsed over the past couple

of years.

The implementation of the Pay Commission’s recommendations will aid this

positive sentiment,” a market analyst said.

Pandey added that, “Consumer durable and FMCG companies are expected to

report better numbers in this quarter and the next quarter.”

The consumption of automobiles, consumer durables, construction material and

houses is set to rise as the entry level pay of Central government employees will

go up to Rs 18,000 per month from Rs 7,000 while the maximum pay, drawn by

a Cabinet Secretary, will jump to Rs 2.5 lakh per month from Rs 90,000 at

present.

Even the housing loan allowance for government employees will move up from

Rs 7.5 lakh to Rs 25 lakh. The Pay panel’s recommendations will benefit over

47 lakh Central government employees and 53 lakh pensioners, of which 14

lakh employees and 18 lakh pensioners are from the defence forces.

According to the State Bank of India, the 7th pay panel’s award will not only

boost consumption but also household savings, which is a plus for the macro-

economy.

“The recommendations are positive for the economy as they will boost

consumption as well as savings through a concomitant increase in bank

deposits, pension and provident funds.

This is welcome in a year when bank deposits have touched a 53-year low,” the

State Bank of India said in its report analysing impact of government salary

hikes. SBI says savings rise more than consumption after increase in salaries.

“No doubt consumption increases with increase in income, nonetheless our

study indicates that higher income on account of Pay Commission translates

more into higher household savings than consumption.

Taking a look at the household savings and private final consumption

expenditure, growth rate of household savings rate sees an increase in the year

immediately after the submission of the report from the preceding year.

However, there is no clear pattern in the consumption rate,” the State Bank of

India said.

Both these factors of higher consumption and increase in savings bode well for

the financial markets, as additional spending will lift corporate profits while

extra savings will boost bank deposits and available pool of resources for

lending for productive purposes.

Inflation remains a concern

The implementation of the 7th Central Pay Commission awards can, however,

be inflationary and may limit the Reserve Bank of India’s ability to cut interest

rates.

The Reserve Bank of India has projected a direct impact of the latest Pay

Commission recommendations on headline inflation to be around 150 basis

points, while the indirect effects are estimated to be around 40 basis points.

When asked on the likely impact of salary hikes on inflation, finance

minister Arun Jaitley on Wednesday said some impact on inflation will be

natural as more resources are being made available in the hands of the

government employees.

Kotak Research said that if the government accepts pay panel’s

recommendations on allowances, then inflation may inch up by 15 basis points.

State Bank of India feels the impact on inflation will only be temporary. “We

believe impact on inflation could be temporary. Past data suggests that inflation

tends to rise following Pay Commission recommendations and then declines.

However, given the significant underutilisation of capacity, we believe the

impact on inflation may not be that significant,” SBI said in its report.

The implementation by the Central government would also force the states to

hike salaries of their employees. States typically follow the Centre in raising

employees’ salaries. This could further add inflationary pressures. Salary hikes

are due in states including Uttar Pradesh, Punjab and West Bengal, among

others.

Centre to give farm exports an organic booster shot

New policy aims to put India on global organic map with uniform norms

In a move that could give a boost to export of agriculture and processed food

from the country, India is framing its own organic products policy with clearly

prescribed safety standards, traceability norms, soil certification guidelines and

good agricultural practices.

The good agricultural practices (GAP) followed by countries such as the US,

Brazil, the Netherlands and France are being studied by trade experts and

officials to generate adequate inputs for the policy, a government official told

BusinessLine. The Commerce Ministry is framing the policy in collaboration

with the Food Safety and Standards Authority of India (FSSAI).

“The idea is to have one uniform policy for the organic products sector so that

domestic consumers as well as foreign buyers gain confidence that the items

that are being sold to them as organic meet certain laid down standards,” the

official added.

A policy is also important for farmers as it would let them know exactly what

they are supposed to do when they are organically farming a certain product,

pointed out Arpita Mukherjee from research body ICRIER. “Every organic

product has its own set of pesticide and bio-fertiliser and farmers have to know

exactly what inputs they are to use,” she said.

While the global organic food market is estimated at an annual $ 72 billion,

exports from India are a miniscule $ 298 million. India exports mostly to the

US, Europe, Korea, Australia, New Zealand and countries in South East Asia.

In India, organic products for exports are certified by various certifying

agencies accredited by the National Programme for Organic Production

(NPOP), India, under Agriculture and Processed Food Products Export

Development Agency (APEDA). For organic products sold in the domestic

market, the certification process is largely voluntary, but FSSAI and Agmark

are taking some steps to regulate it, the official added.

Certification of organic soil in the country is a problem as there are no domestic

certification agencies for that and the services of foreign certifying agents is use

to certify the soil.

“When India is exporting organic products to the US or to the EU, it has to be

first established that the norms being followed at identified organic farms match

the existing norms in the buying countries,” the official said.

With a proper policy in place, the process of cross checking guidelines by

importing countries would become smoother. The same guidelines would also

apply on items for exports, imports and domestic market.

Traceability of inputs, especially in case of processed food to determine if all

ingredients in a certified organic product are also organic, is also expected to

improve once the policy is in place, the official added.

India produced around 1.35 million tonne of certified organic products which

includes all varieties of food products such as sugarcane, oil seeds, cereals &

millets, cotton, pulses, medicinal plants, tea, fruits, spices, dry fruits, vegetables

and coffee.

Rains in June 11% lower than normal

The South-West monsoon, which arrived late by about eight days this year, has

delivered a 11 per cent deficit rainfall for the month of June across the country.

The country as a whole received 145.4 mm rainfall in June, about 11 per cent

lower than the normal of 163.6 mm for the period, according to the data from

Indian Metrological Department (IMD).

About 24 of the 36 metrological sub-divisions, accounting for 63 per cent of the

area the country have received normal-to-excess rains. The rainfall was

deficient in about 10 sub-divisions, which formed 31 per cent of the area, while

two sub-divisions had received scanty rains. The South Peninsula has received

26 per cent excess rains, while the rainfall has been deficit in Central India by

17 per cent, North West India by 7 per cent and East and North-East India by 28

per cent.

June, the first of the four month rainy season, normally accounts for 18.4 per

cent of the long period average of 886.9 mm rainfall that the country receives.

Farming in full swing in AP, T’gana

After nearly three years, Andhra Pradesh and Telangana have been receiving

copious rains and agricultural operations are on in full swing. While Andhra

Pradesh has reported ‘excess’ rainfall so far, several Telangana districts

registered either normal or above normal rainfall.

Cotton has gained the most, followed by paddy and groundnut, bringing cheer

to farmers that suffered three successive failed seasons.

As a result of excess rain in 10 districts, farmers in Andhra Pradesh have

completed sowing on 5.62 lakh hectares (lh), about 50 per cent more than the

average as-on-date acreage of 3.88 lh.

“Cotton sowing has been completed on about 88,000 hectares as against 71,000

ha (as on date). Paddy sowing has covered 45,000 ha (41,000 ha) so far. We

expect the trend to continue keeping in view the prediction of good monsoon

this time,” a top official of the Andhra Pradesh Agriculture Department

told BusinessLine.

Of the total average cropped area of 41 lh in Andhra Pradesh, farmers grow

paddy on 16 lh, groundnut on 9.30 lh and cotton on 6.41 lh.

Though they started relatively late due to the delayed rains, agricultural

operations in Telangana, too, have picked up momentum. The predominantly

rain-fed State has received widespread precipitation in the last few days.

However, official figures for rainfall and its spread are yet to be released.

As per the available numbers, cotton sowing showed some sluggishness as

farmers completed sowing on only 2.84 lh against the average as-on-date area

of 5.74 lh.

The State had earlier asked farmers not to grow cotton and to consider other

options such as maize and soya.

In a normal year, the State grows cotton on 17 lh. This, however, was hit

severely in the last two years due to a severe drought. The seed companies,

however, feel that there won’t be any reduction in the area. “As we see, we are

going to have good rains and farmers will go for cotton,” said a top executive at

a seed company, seeking anonymity.

NCCF to sell chana dal at Rs 60/kg in Delhi

The Centre has asked the National Consumer Cooperative Federation (NCCF)

to start selling chana dal at Rs 60/kg thorough its mobile outlets in Delhi. NCCF

is already selling tur and urad through its outlets at Rs 120/kg, the Food

Ministry said in a statement.

A decision in this regard was taken in the meeting of Management Committee

of Price Stabilisation Fund here on Thursday, chaired by Hem Pande, Secretary,

Consumer Affairs.

The meeting also decided to further tender import of 5,000 tonnes of chana and

2,500 tonnes of masoor dal.

In addition, MMTC was asked to order import of 2,500 tonnes of masoor

against its already contracted quantity. “So far, MMTC has contracted import of

46,000 tonnes of pulses, out of which 14,321 tonnes have been delivered,” said

the statement, adding that procurement of rabi pulses was expected to continue

till July.

TV show on rubber tapping

Doordarshan Kendra, Thiruvananthapuram, will telecast a live phone-in

programme on weekly tapping in their Krishidarshan programme from 5.05 pm

to 5.50 pm on Friday.

KU Thomas, Jt. Director, Rubber Research Institute, will answer questions. The

Rubber Board promotional campaign on weekly tapping is under way in the

traditional rubber growing belt of Kerala, Tamil Nadu and Karnataka.

This mass contact programme to promote weekly tapping among rubber

growers will be on till July 22. Our Correspondent

Clay irrigation system challenging drip method

Vidarbha-based firm develops Clay Emitter irrigation system for Gujarat small

farmers

For marginal and small farmers with small landholdings, having a mechanism

for optimum use of water is a boon. At a time when the Prime Minister had

announced setting up a task force to study the impact of drip irrigation in the

country, Clay Emitter irrigation is vying with drip irrigation for select crops.

Shaped like a ‘gilli’ of the popular amateur street game ‘Gilli-Danda’, the clay

emitter is an 8-cm long earthen tube tapered at both ends with 30-40 per cent

porosity. This emitter is connected with rubber pipes on each sides thereby

making a series of emitters connected through the pipes. This series once

connected to a drum filled with clean water, and placed at a moderate height,

serves as a mini water-grid for plants.

Continuous system

“The earthen emitter allows water to seep through the pores thereby providing

optimum soil moisture for the plant. When water is drawn through the pores, it

moves in all directions due to capillary and osmotic forces, and forms a

spherical wet zone for the roots of the plant. The water withdrawn by the plant

is immediately replenished making it a continuous system,” said Soham Pandya,

Executive Director, Centre of Science for Villages (CSV), which developed the

cost economics and design for the emitter irrigation.

Improvement over drip?

Pandya claims that the concept is an improvement over the drip irrigation

system with 50 per cent less water needed because it waters the root zone of the

plant directly and costs about 50 per cent less than the drip system as it is made

of clay, and can be produced even by a local potter.

Depending on the soil type, a number of emitters can be placed around a plant.

In dry soil, emitters with 30 to 35 per cent porosity release about 2-2.5 litres of

water in a span of 24 hours. The shape and size of the wet zone around the

emitters differs in different soils.

The model is best suitable for plant crops such as fresh vegetables, oranges,

lemon and floriculture crops such as gerbera flowers. However, academic

circles in the agricultural research field have raised several doubts about the

success of the system over the widely

“There have been concerns about clogging in the pipeline and emitters. Also,

farmers need a rough-and

complex and delicate. Yes, for water

and proven system. But commercial viability is a question today,” said VP

Usdadiya, Research Scientist

University.

The statistical calculations conducted by Pandya revealed that the total cost of

fixing and laying the emitter network on a 0.1 hectare plot is

the cost of emitters, pipes and labour.

“The system has a life of about seven years. A farmer, who takes up cultivation

of gerbera flowers would earn anywhere between

from the crop. They can take multiple crops in

Over 100 Noble laureates slam Greenpeace for opposing GMOs

Scientists claimed that organisations opposed to modern plant breeding, with

Greenpeace at their lead, have misrepresented risks, benefits, and impacts of

genetically modified organisms (GMOs)


success of the system over the widely-accepted drip.


and-tough and easy-to-lay system like drip. This is more

complex and delicate. Yes, for water-starved regions, clay emitter is an age


Usdadiya, Research Scientist – soil and water management, Navsari Agriculture


fixing and laying the emitter network on a 0.1 hectare plot is 34,700, including

the cost of emitters, pipes and labour.


of gerbera flowers would earn anywhere between 1,65,000 and

from the crop. They can take multiple crops in a year,” he said.




organisms (GMOs)



lay system like drip. This is more

starved regions, clay emitter is an age-old


avsari Agriculture


34,700, including


1,65,000 and 2,00,000




In a letter, more than 100 Noble laureates have slammedGreenpeace for

opposing biotechnological innovations inagriculture and urged the environment

NGO to end its opposition to genetically modified organisms (GMOs)

technology. In the letter, scientists have claimed that organisations opposed to

modern plant breeding, with Greenpeace at their lead, have misrepresented

GMOs’ risks, benefits, and impacts, and supported the criminal destruction of

approved field trials and research projects.

The letter, addressed to Greenpeace, the United Nations and governments

around the world, was seeking support for genetically modified rice variety

which is developed to tackle vitamin A deficiency in the developing and under-

developed world, especially Asia and Africa.

“The United Nations Food & Agriculture Program has noted that global

production of food, feed and fibre will need approximately to double by 2050 to

meet the demands of a growing global population. We urge Greenpeace and its

supporters to re-examine the experience of farmers and consumers worldwide

with crops and foods improved through biotechnology, recognise the findings of

authoritative scientific bodies and regulatory agencies, and abandon their

campaign against ‘GMOs’ in general and Golden Rice in particular,” said the

letter.

Scientific and regulatory agencies around the world have repeatedly and

consistently found crops and foods improved through biotechnology to be as

safe as, if not safer than those derived from any other method of production.

“There has never been a single confirmed case of a negative health outcome for

humans or animals from their consumption. Their environmental impacts have

been shown repeatedly to be less damaging to the environment, and a boon to

global biodiversity,” the letter claimed.

Greenpeace has spearheaded opposition to Golden Rice, which has the potential

to reduce or eliminate much of the death and disease caused by a vitamin A

deficiency (VAD), which has the greatest impact on the poorest people in

Africa and Southeast Asia.

The World Health Organization estimates that 250 million people, suffer from

VAD, including 40 percent of the children under five in the developing world.

Based on UNICEF statistics, a total of one to two million preventable deaths

occur annually as a result of VAD, because it compromises the immune system,

putting babies and children at great risk. VAD itself is the leading cause of

childhood blindness globally affecting 250,000 - 500,000 children each year.

Half die within 12 months of losing their eyesight.

The letter urged Greenpeace to cease and desist in its campaign against Golden

Rice specifically, and crops and foods improved through biotechnology in

general.

It also called upon governments of the world to reject Greenpeace’s campaign

against Golden Rice specifically, and crops and foods improved through

biotechnology in general; and to do everything in their power to oppose

Greenpeace's actions and accelerate the access of farmers to all the tools of

modern biology, especially seeds improved through biotechnology.

“Opposition based on emotion and dogma contradicted by data must be

stopped,” the letter concluded.

Incessant rains in Goa may hamper paddy crop

State agriculture department said continuous rains resulting in the fields getting

inundated is not good for the paddy cultivation

As incessant rains continued to lash Goa, paddy growers are worried that the

constant downpour might result in a poor yield this season.

State agriculture department which is monitoring the situation has said

continuous rains resulting in the fields getting inundated is not good for the

paddy cultivation.

"It should not rain for a day or two so that the water recedes out.

The plantation has began just now," State Agriculture director Ulhas Pai

Kakode told PTI on Thursday.

Goa has approximately 28,000 hectares of land underpaddy cultivation during

monsoon, and this time around acreage is likely to be more, he said, adding that

on an average each hectare produces four tonnes of rice.

The rice is cultivated in majority of the rural areas of the state.

"The met department had alerted about the rains but the water level in rice fields

are always dependent on low tide and high tide (of the sea)," he added.

Monsoon, which arrived after a delay of fortnight, has been continuously

lashing the state with 1215 mm of rains till this afternoon, 326.1 mm more than

the normal,

the IndianMeteorological Observatory said in a bulletin on Thursday.

Rainfall is very likely to occur at most places in Goa during next five days.

Maize shortage hits starch makers

According to trade estimates, the crop for the current season is 17 million

tonnes, against the domestic demand of 20 mt

Starch manufacturers are facing a shortage of maize, the primary ingredient,

whose price has touched a record high of Rs 1,850 a quintal and is expected to

move higher, in the wake of supply constraints.

I K Sardana, president of the All India Starch Manufacturers Association

says maize is mainly grown in the rain-fed areas of Bihar, Maharashtra, Andhra

Pradesh and Karnataka. Two years of drought have curtailed supply. The price

is normally around Rs 1,500 a quintal in this season and starts moving up in

August. This year, low availability due to crop failure and stocking by global

entities operating in India has posed a problem.

According to trade estimates, the crop for the current season is 17 million

tonnes, against the domestic demand of 20 mt. As there were no carryover

stocks from last year, due to less production from scanty rain and lower sowing,

the industry is in a tight spot. Nor is it able to revise the price of starch, as the

contracts for these are signed well in advance and cannot be revised in the

middle of the season.

Sardana said they’d had a meeting with Union commerce and industry

minister Nirmala Sitharaman on Wednesday, asking her to allow 500,000

tonnes of import by actual users, which she’d approved in principle. However,

this could take six to eight weeks and many manufacturers might not be able to

sustain operations at the current price for longer, he said.

Vishal Majithia, director, Sahyadri Starch Industry, Maharashtra, said the new

crop would arrive in October/November, by when many small mills would have

shut down.

Whether genetically modified (GM) maize’s import could be allowed was

another issue raised. This has not been allowed till date.

A trade analyst said approval for import might not be of much help. Ukarine’s

crop is over, as this is the end of the season. American maize is available but it

would be a GM crop. Even if GM cropimport for the industry was allowed, a

demand for 500,000 tonnes in a short span would trigger a price rise. The

landed cost of US maize at Indian ports is $220 a tonne today but could inflate

if demand surges.

‘’The non-GM condition has put India with limited origins in the world for

importing corn (maize). With Ukraine’s crop coming to an end, how much they

will be able to ship promptly will have to be seen,’’ said Rajiv Yadav, vice-

president with Noble Resources.

The government needs to change the policy on GM maize import, for

processing and livestock feed as is practiced world over, the analyst added.

Sugar mills pay 92% dues to cane farmers; owe Rs 4,225 cr

Sugar mills have paid Rs 48,675 crore to sugarcane farmers and owe about Rs

4,225 crore for the current marketing year ending September, the government

today said.

Of the total cane arrears, the maximum amount pertains to Uttar Pradesh at Rs

1,975 crore.

The cane price payable and arrears have been calculated on the basis of Fair and

Remunerative Price (FRP), which is the minimum price, fixed by the Centre, to

be paid to farmers. For the 2015-16 marketing year, FRP for sugarcane has been

fixed at Rs 230 per quintal.

"During the current sugar Season 2015-16, about 230 million tonnes of

sugarcane was procured from the farmers by the sugar mills across the country.

"Out of the total cane price dues payable of Rs 52,900 crore, on the basis of Fair

and Remunerative Price (FRP), only Rs 4,225 crore are pending as cane price

arrears for current sugar season," the Food Ministry said in a statement.

Sugar mills have paid about 92 per cent of their cane dues so far, it added.

"Out of the total pending cane price arrears for current sugar season, about Rs

1,975 crore pertains to Uttar Pradesh which is about 14 per cent of its dues

payable," the statement said, adding that a major portion of the pending arrears

about Rs 1,600 crore belongs to five sugar group companies namely, Bajaj,

Mawana, Modi, Simbhaoli and Rana.

Maharashtra being the major sugar producing state has cleared almost 96 per

cent of sugar cane dues payable and only Rs 5,90 crore are pending as arrears.

Other major sugar producing state like Karnataka have also paid 94 per cent

dues to farmers.

During the sugar season 2014-15, the cane price arrears had peaked at Rs

21,800 crore in April last year and this has now come down to just Rs 684 crore.

"Central government has been consistently monitoring the position of cane price

arrear and advising the state governments for speedy liquidation of arrears," the

ministry said.

Sugar production of India, the world's second largest producer after Brazil, is

estimated to decline to 25 million tonnes in the 2015-16 marketing year, as

against 28.3 million tonnes in the previous year. The annual domestic demand is

pegged at 26 million tonnes.

For the next 2016-17 marketing year, the government has forecast further

decline in output at 23-24 million tonnes, although it has maintained that there

would be no shortage as the country would have 30-31 million tonnes of sugar

supply taking into account the carry-over stocks. JTR MJH SA

CAG to audit crop insurance schemes in nine states

The Comptroller and Auditor General (CAG) will conduct a performance audit

of crop insurance schemes in nine states to examine the efficacy of such

initiatives in providing relief to farmers in the event of crop damage.

The performance audit will include examination of records of Department of

Agriculture Cooperation and Farmers Welfare, Agriculture Insurance Company

of India Limited, State Agriculture Department and other related departments,

the RBI said while asking banks to provide access to related records to the

auditor.

"This audit is proposed to be conducted in the states of Andhra Pradesh, Assam,

Gujarat, Haryana, Himachal Pradesh, Orissa, Maharashtra, Rajasthan

and Telanganawith the help of the offices of the Principal Accountant

General/Accountant General (Audit) in the respective states," it said.

Further, as crop insurance schemes are being implemented with the help of

various banks, insurance companies and co-operative institutions, examination

of the records of these organisations is necessary to ascertain whether schemes

are being implemented effectively, it said.

"In view of the above, you (banks) are advised to facilitate access to your

records pertaining to crop insurance schemes to the audit teams...," the RBI

said.

In another notification, RBI said that in view of the difficulties faced by farmers

in areas affected by natural calamities, "banks are advised to act with empathy".

Banks have been asked to consider restructuring and granting fresh loans

without waiting for the receipt of the insurance claims, in cases where there is

reasonable certainty of receipt of the claim.

As per RBI norms, while restructuring loans in the areas affected by natural

calamities, banks are required to adjust the insurance proceeds, if any,

receivable from the insurance company to 'restructured accounts' in cases where

they have granted fresh loans to the borrowers. NKS NKD ABM

Karnataka rolls out software for crop insurance scheme

The Karnataka government on Thursday rolled out a unique software to enable

farmers register online for the crop insurance scheme.

"The software (Samrakshane) application is a combination of the Karnataka

Raita Suraksha Pradhana Mantri Fasal Bima Yojana and the Restructured

Weather-based Crop Insurance Scheme," said Chief Minister Siddaramaiah.

The central government had launched the twin schemes to provide financial aid

to farmers suffering crop loss or damage from unforeseen events or natural

disasters.

"We have earmarked Rs 675.38 crore in the budget for this fiscal (2016-17) to

implement the schemes so that farmers do not suffer financial loss due to floods,

drought, unseasonal rains and other calamities," the chief minister said.

As the central government has removed the cap on premium to reduce its

burden, the farmer's share will be 1.5-2 per cent on foodgrains and oil seed

crops and 5 per cent on commercial and horticultural crops.

"Though we hope to cover 50 per cent of farmers this fiscal, we hope more will

enroll for the schemes, as the premium is minimal. The software will collect

data on needs of each farmer at different stages of crop growth till payment is

made," Siddaramaiah said.

The Samrakshane (protection) software for end-to-end automation of crop

insurance process will provide an efficient, transparent and accountable system

for speedy delivery of benefits and risk cover to the farming community across

the state. It will generate a unique number for each farmer to keep track of their

farming activity to insure the crop against loss or damage.

"The system is linked to the Aadhaar database of farmers for direct payment

into their bank accounts and they will be informed about the status through

SMS and uploaded on the dedicated portal for their information," said

Siddaramaiah.

"A mobile application is being developed to enable farmers report on crop loss

from unforeseen events to the authority concerned," he added.

The software also provides reports on farmers insuring their crop in a particular

area and ensures that the area reduction of factor is not applied.

The software is also linked to the Karnataka State Natural Disaster Monitoring

Centre data and collects weather data real-time.

Point of Sales Persons can now sell crop insurance schemes

Regulator IRDAI today allowed Point of Sales Persons on non-life insurers to

solicit the three government sponsored crops insurance schemes.

Pradhan Mantri Fasal Bima Yojna (PMFBY), Weather-Based Crop Insurance

Scheme (WBCIS) and Coconut Palm Insurance Scheme (CPIS) can now be

solicited and procured through Point of Sales Persons of non-life insurers.

"The Authority, removes cap on sum insured for the above mentioned

government sponsored crop insurance schemes," Insurance Regulatory and

DevelopmentAuthority of India said in a circular.

The insurers wishing to solicit and procure the three government sponsored crop

insurance schemes through Point of Sales Persons will have to follow the

prescribed procedure.

Point of Sales Persons can solicit and market only certain pre-underwritten

products approved by the IRDAI.

The Agriculture Ministry has empanelled 11 private sector companies and state-

owned Agriculture Insurance Company (AIC) to implement the PMFBY. It is

also actively considering to empanel four state-run general insurance

companies.

Under the PMFBY, farmers' premium has been kept lower at 1.5

foodgrains and oilseed crops and up to 5 per cent for horticultural and cotton

crops.

There will not be a cap on the premium and 25 per cent of the likely claim will

be settled directly in farmers accounts.

The new scheme aims to increase the insu

total crop area of 194.40 million hectares, from the existing level of about 25

per cent. NKD ABK

Sowing for kharif season improves with pickup of monsoon

Kharif sowings have been low this year because of defici

24, sowing was completed on 11.7% of the area generally under kharif crops.

Under the PMFBY, farmers' premium has been kept lower at 1.5



be settled directly in farmers accounts.

The new scheme aims to increase the insurance coverage to 50 per cent of the

total crop area of 194.40 million hectares, from the existing level of about 25

Sowing for kharif season improves with pickup of monsoon

Kharif sowings have been low this year because of deficient rains. As on June


Under the PMFBY, farmers' premium has been kept lower at 1.5-2 per cent for



rance coverage to 50 per cent of the

total crop area of 194.40 million hectares, from the existing level of about 25-27

ent rains. As on June


PUNE: Sowing for the kharif season has picked up with monsoon rains

expected to cover most parts of the country over the next two to three days. The

weather office, however, said the interior peninsula may have to wait for about

a week before heavy rains can start filling up reservoirs. "We expect monsoon

to cover most parts of the country, except the extreme western part of Rajasthan

in next two to three days," Sunitha Devi, director, weather section,Indian

Meteorological Department, told ET.

Kharif sowings have been low this year because of deficient rains. As on June


This is about a quarter of what was achieved last year. Officials said the

deficiency has been highest in case of paddy, cotton and soyabean. With good

rains over the last few days, a major improvement in sowing is expected at the

field level. "Soyabean sowing has almost been over as rainfall and moisture

levels were adequate for sowing operations," said Davish Jain, president

of soyabean Processors Association of India (SOPA).

June ends with rainfall deficiency of 11 per cent

Monsoon is yet to reach several parts of the country, especially northwest India

and all region barring the southern peninsula have received deficient rainfall

until now.

NEW DELHI: Of the four-month monsoon season in the country, June has

ended up with the overall rainfall deficiency of 11 per cent and it is fast

declining .

Monsoon is yet to reach several parts of the country, especially northwest India

and all region barring the southern peninsula have received deficient rainfall

until now.

In east and northeast India, monsoon was deficient by 28 per cent, while the

deficiency was 17 and 7 per cent in central and northwest India respectively.

The Northern Limit of Monsoon (NLM) continues to pass through Dwarka,

Vallabh Vidyanagar, Sawai Madhopur, Gwalior, Lucknow, Pantnagar,

Dehradun, Una and Jammu. It is expected to cover Delhi, Haryana and Punjab

in next two days.

June to September is considered as the rainfall season in India. As per the IMD

forecast after two consecutive bad rainfall seasons, this monsoon will be "above

normal".

However, some more positive news is in the offing. El Nino, which is related to

sea surface temperatures in the Pacific, is in "neutral" condition. The

phenomena had hampered monsoon last year and was also a reason for a

warmer winter.

"Madden Julian Oscillation (MJO) is currently over Maritime Continent and is

strong in amplitude, which is favourable for active monsoon conditions over

central and north India.

In its forecast for the next 15 days, the IMD has predicted an "above normal"

rainfall activity over north India during first week and over central India during

second week of July. Western parts of the country are likely to receive above

normal rainfall activity during second week.

"The West coast is likely to receive above normal rainfall till 10 July. Slightly

below normal rainfall activity is likely over northeastern states till July 5 and

normal rainfall activity thereafter.

"Normal to below normal rainfall activity is likely over south interior Peninsular

India and it is likely till middle of July," the IMD added.

Government to import 7,500 tons of chana, masoor dal

At present, pulses prices are retailing as high as Rs 198 per kg due to shortfall in

the domestic ouput following two consecutive years of drought.

NEW DELHI: The government today decided to import 7,500 tonnes of chana

and masoor dal in the coming days to boost domestic supply and curb prices.

The pulses issue was discussed in detail in the meeting of Management

Committee of Price Stabilisation Fund, chaired by Consumer Affairs Secretary

Hem Pande here today.

"The meeting decided to further tender import of 5,000 tonnes of chana and

2,500 tonnes of masoor. It also asked MMTC to order import of 2,500 masoor

against its already contracted quantity," the Food Ministry said in a statement.

So far, state-run MMTC -- which is importing pulses on behalf of the

government -- has contracted 46,000 tonnes of pulses from the overseas market.

Of this, 14,321 tonnes has landed in the country.

In the meeting, the government also decided to allocate pulses from its buffer

stock to Chhattisgarh, Maharashtra, Bihar, Andhra Pradesh, Tamil Nadu,

Telangana, Madhya Pradesh and Andaman and Nicobar for retail distribution at

a subsidised rate of Rs 120 per kg.

The pulses, especially tur and urad, are allocated to these states at Rs 66 per kg

so that they can retail further at not more than Rs 120 per kg.

So far, 1.19 lakh tonnes of pulses has been procured for the buffer stock. The

rabi pulses procurement is expected to continue till July, the statement added.

At present, pulses prices are retailing as high as Rs 198 per kg due to shortfall in

the domestic ouput following two consecutive years of drought.

Pulses output is estimated to be lower at 17.06 million tonnes in 2015-16 crop

year (July-June) as against the annual demand of 23.5 million tonnes. The gap is

being met through imports.

Farm revival some way off despite a good monsoon: India Ratings and

Research

During the 2009 slowdown, the production of all crops dropped 4 per cent year-

on-year, the report added.

NEW DELHI: Farm recovery may be delayed despite a favourable monsoon

this year and India needs more such spells because drought in the last two years

has created much more severe stress, the latest report from India Ratings and

Research said.

A complete recovery of the farm sector would require a strong improvement in

productivity, yield, acreage and minimum support price (MSP), and successful

implementation of various schemes announced in the Budget, it said.

The India weather office has projected better than normal South-West monsoon

for this year. In June, rainfall was less, but the situation is expected to improve

in July-August.

"Just one favourable monsoon may prove quite inadequate to completely restore

the farm sector," Ind-Ra said in the report.

That is because unlike the 2009 downturn, the current cycle has so far seen

almost five years of muted growth in not just production and price, but acreage

and crop yields, it said.

As per the report, the consecutive monsoon failures have created a much more

severe impact on the farm sector and tractor loans now than in 2009 and "hence,

a recovery is likely to be protracted".

Noting that absence of significant growth in irrigated area exposes several

regions to the risk of an erratic rainfall, the report said even after a favourable

monsoon this year, chances of a complete recovery in tractor loans and farm

output may get hampered if the next monsoon is not favourable.

"A complete recovery in the farm sector may require more than two favourable

monsoons, considering the severity of current stress," it said.

During the 2009 slowdown, the production of all crops dropped 4 per cent year-

on-year, the report added.

However, an over 25 per cent increase in MSP for both foodgrain and non-

foodgrain crops and nearly 4 per cent drop in key input cost -- diesel and

fertiliser -- lessened farmers' burden.

But in 2014 and 2015, not only the production suffered, but the growth in MSP

was low at a compound annual growth rate (CAGR) of below 3 per cent.

Even after factoring in the reduction in diesel prices in the last two years,

farmers' net profit has been growing at a CAGR of below 10 per cent since 2014

and hence, impact on farmers' income has been more pronounced, it observed.

Spices Board gives financial assistance to cardamom farmers reeling under

price fall

The crop loss, due to deficient rainfall and high temperature, is likely to be up to

20-25% and plant loss about 5-10% in Idukki district during the season 2016-

17.

KOCHI: Spices Board has provided financial assistance to the tune of Rs.7.21

crore to more than 23,000 farmers from the Cardamom Development Fund

Trust for cardamom farmers in Kerala reeling under fall in prices, high cost of

labour and increased prices of fertilisers and pesticides.

The crop loss, due to deficient rainfall and high temperature, is likely to be up to

20-25% and plant loss about 5-10% in Idukki district during the season 2016-

17. The cardamom crop in the previous year is estimated to be around 20,000

tonnes.

"The decision to provide financial assistance to 23,232 farmers was taken after

making field observations and feedback obtained from individual farmers,

farmers' associations and Spices Board officials. The erratic weather has

severely affected the yield leading to plant loss of cardamom", said Dr A

Jayathilak, chairman, Spices Board.

The withering of leaves and leaf sheaths was observed in a large number of

cardamom plants. The long dry spell from December 2015 to the first fortnight

of May this year had adversely affected the cardamom plantations in Idukki

district as this period is critical for the development of the plant.

The impact of long dry spell may affect the production and productivity in the

ensuing season and the fluctuating weather is not considered a favourable sign

for the cardamom farmers.

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