Monthly Report (May 2018)

Transcription

1 Monthly Report (May 2018) Commodity Outlook and Situation Analysis Project

2 Normal monsoon predicted, Centre sets target for foodgrain production Backed by forecast of normal monsoon rainfall, the Centre set a tentative foodgrain production target of million tonnes (MT) for the crop year (July-June) nearly 6 million tonnes more than what it had estimated for the current crop year ( ) which would be an all-time record. The new target was released by the agriculture ministry on the inaugural day of its Kharif campaign conference which is being organised to sensitise states on how to prepare itself to reap maximum benefits of normal monsoon rainfall during June- September period and also on how to conserve rain-water during rainy season for its use during winter. Punjab promotes PAU rice variety to cut water usage and stubble burning Punjab government is in full swing in promoting Punjab Agriculture University (PAU) Rice variety, farmers are being urged to switch to the early-maturing varieties of Paddy which need less water and leave lighter stubble in the fields after harvest. Punjab Agriculture University has developed short-duration Paddy varieties over late-maturing PUSA varieties that require more water and leave heavier stubble. PUSA-44 variety increases menace of air pollution as the stubble is heavier than the short-duration varieties. The state agriculture department is promoting PR 126, a short-duration Rice variety which attains height of 102 cm and matures in days.

3 Haryana to introduce solar based tubewell scheme for farmers Haryana finance minister, Captain Abhimanyu said on Friday that the state government is mulling to implement a solar based tubewell scheme in the state. The scheme aims to benefit the farmers as they would be able to generate electricity and earn income. Capt Abhimanyu was addressing a press conference after the meeting with 15th Finance Commission. He said that under this scheme, six lakh tubewells in the State would be linked with solar energy. The farmers would be able to utilize the solar energy as per the requirement and also sell the surplus power available with them. This would help them earn income, he added. He said that the aim of the scheme is to make the farmer producer besides the consumer. The power subsidy of Rs crore to be given under this scheme would also be borne by the state government. This scheme would be finalized soon, he added. Cabinet approves subsidy of Rs 55 per tonne for sugarcane farmers To cut pilferage in the fertiliser subsidy mechanism, the government must expand infrastructure, issue licences to new retailers and put in place a strong grievance redressal system, according to a study by consulting company MicroSave. MicroSave s study for think-tank Niti Aayog and the department of fertilisers is with regard to the government s decision that from this kharif season, payment of subsidy to fertiliser companies will be initiated on actual sales to farmers, an agriculture ministry official told ET. Earlier, the process would start once companies produced documents showing dispatch of fertiliser to district headquarters.

4 Sugar outlook remains weak despite government's cane subsidy: Icra The overall outlook for sugar remained weak even when the government's cane subsidy might marginally improve operational profitability of the mills, Icra said in a report. "With the reduced cane costs, the total contribution margin is likely to increase by around Rs 500 per tonne of sugar produced, which translates into a one-and-a-half per cent margin at the operating level," Icra Ratings Senior Vice President and Group Head Sabyasachi Majumdar said. However, he said, in inspite of the expected marginal improvement in operating profitability, the overall profitability outlook for the sugar sector remained weak for FY19. "On the positive side, however, the production subsidy aims to expedite the pace of exports, which in turn is expected to relieve the pressure from domestic sugar stocks and raise domestic sugar realisations to an extent, thereby offsetting losses from sugar exports," he added. Following expectations of a bumper sugar production during SY2018, the government had notified a cane production subsidy of Rs 55 per tonne, which would be paid directly to farmers as part of the cane costs. Bengal dairy farmers to get an additional subsidy Cotton season in Punjab is off to a sluggish start, with seed companies reporting low demand for BT cotton seeds, the variety that accounts for most of the cotton grown in the country. Seed companies say farmers are shifting to other crops, especially paddy and maize, in which they see higher returns. Accordingly, cotton acreage in the state this kharif season is expected to drop by 15-20% despite an 8% discount in price of seeds this year. Experts said if sowing doesn t pick up pace, it could affect the revival of cotton in Punjab, where acreage under the cash crop had jumped by about half in Demand for cotton seeds so far is 20-30% less than last year due to factors including delay in supply of canal water and higher income in paddy in the last season, a Fazilka-based distributor of Rasi Seeds said. Cotton, largely BT cotton, was grown over 122 lakh hectares in India in In recent years, pest infestation, high input costs and drop in earnings in cotton have hit farmers hard.

5 Ministry to push for farmers' MSP soon The agriculture ministry will soon move a Cabinet note seeking approval for a new policy that aims to rope in both states and private firms in procurement of other crops than wheat and paddy, for ensuring MSP to farmers, a senior government official said. The objective of the proposed policy is to improve the speed of response and effectiveness of procurement in cases when prices drop below the minimum support price (MSP). The ministry has proposed three models - Market Assurance Scheme (MAS), Price Deficiency Procurement Scheme (PDPS) and Private Procurement and Stockists Scheme after consultations with an informal group of ministers, headed by Home Minister Rajnath Singh, as well as with state governments. According to sources, the monitory implication of the proposed policy will run into thousands of crores if all three schemes are implemented by all states in all MSP notified crops. Also, the existing Price Support Scheme (PSS) and Market Intervention Scheme (MIS) will be discontinued once the new policy is in place, the sources added. Pulses import falls by 1million tonnes in FY18 About 15 lakh quintals of Mozambique Pigeon Pea (Tur Dal) and other Pulses will soon enter the Indian market. This has resulted in rates of Tur Dal crashing in Maharashtra and other producer states. The import of Tur and Pulses can increase trouble for the farmers. A bumper production of Tur, Chana and other Pulses has been recorded in Maharashtra and a few other states over the last three years. The government is procuring Tur, Urad and other Pulses at the minimum support price (MSP) to protect farmers interests. Notwithstanding, rates of pulses in the market are down to less than Rs 70 to Rs 80 per kg.

6 Farm activist urges Centre to ban toxic pesticides The special task force constituted to tackle the agrarian crisis in Maharashtra has urged the Centre to accept the state government s proposal to ban some toxic insecticides. The demand comes in the wake of several cases of farmers deaths in Vidarbha region due to pesticide poisoning last year. Farm activist and chief of the Maharashtra government s task force, Kishor Tiwari, in a statement issued today, said the state has sent a proposal to the Centre to ban the poisonous pesticides. He claimed that last year more than 60 farmers died in the state due to inhalation of poisonous pesticides while spraying the chemicals. The Union government should immediately accept the state s proposal to ban such pesticides, said Tiwari, the chairman of the Vasantrao Naik Sheti Swavalamban Mission. Most of these pesticides have been banned in other countries because of their impact on people s health and ecology, he said. Continuation of Krishonnati Yojana approved

7 The government approved the continuation of the agriculture sector umbrella programme, 'Green Revolution Krishonnati Yojana', with a central outlay of Rs 33, crore till March The programme comprises of 11 schemes to develop the agriculture and allied sector in a holistic and scientific manner to increase the income of farmers by enhancing production, productivity and better returns on produce. The Cabinet Committee on Economic Af-EOM fairs (CCEA) approved the scheme as part of its objective to double farmers' income by The schemes will be continued with an expenditure of Rs 33, crore for three financial years, i.e., , and , said an official statement. "The schemes focus on creating and strengthening of infrastructure of production, reducing production cost and marketing of agriculture and allied produce. These schemes have been under implementation for varying duration during past few years, said the statement adding that in , it was decided to club all these schemes under one umbrella.