Tea exports jump 14.28% in May: INDIA

The Telegraph

Kolkata, 5 July 2010

Tea exports jump 14.28% in May

Tea exports from India increased over 14.28 per cent to 11.20 million kg in May from 9.8 million kg during the same period last year, data published by the Tea Board of India showed. Production during the month rose 1.7 per cent to 72.63 million kg from 71.37 million kg in May 2009 on the back of higher output in the southern states. India exports CTC tea mainly to Egypt , Pakistan and the UK , and the premium orthodox variety to Iraq , Iran and Russia . The country is the largest exporter followed by Kenya . According to the Tea Board statistics, exports during January-May rose to 71.18 million kg from 59.60 million kg a year earlier. Production rose to 234.93 million kg from 215.85 million kg during the period. Total production in the country rose during May despite a fall in output in key producing state Assam . In North India, production declined to 47.4 million kg from 50.32 million kg mainly because of the fall in production, by about 3.5 million kg, in Assam . Output in southern states rose to 25.22 million kg from 21.05 million kg. However, in value terms, exports in May declined to Rs 129.78 crore from Rs 135 crore because of lower realisation — which fell to Rs 115.84 per kg from Rs 138.13 per kg. In value terms, exports stood at Rs 869.45 crore against Rs 770.86 crore in January-May. However experts feel, increasing production in Kenya and Sri Lanka are likely to affect India ’s exports. Sri Lanka ’s output in the first four months of the year was up 27 per cent compared with the previous year, which saw global production coming down because of the erratic weather. Kenya ’s output rose 69 per cent to 111.7 million kg in the first quarter of 2010 and exports increased 24 per cent to 117 million kg.

Agriculture 2.0 is the new clean tech at Silicon Valley

Financial Chronicle
New Delhi, 24 June 2010
Agriculture 2.0 is the new clean tech at Silicon Valley
Silicon Valley’s apricot and cherry orchards disappeared decades ago, replaced by semiconductor plants and office parks populated by technologists. Now some of the Valley’s most prominent venture capitalists are looking to the region’s roots for what could be the next new thing in an old business: agriculture. “Sustainable agriculture is a space that looks as big or bigger than clean tech,” said Paul Matteucci, a venture capitalist with US Venture Partners in Menlo Park , California . “Historically, we have not seen a ton of entrepreneurial activity in agriculture, but we are beginning to see it now, and the opportunities are huge.” A catch-all phrase for environmentally beneficial farming, sustainable agriculture has long been the province of organic enthusiasts. But venture capitalists say a growing awareness of conventional agriculture’s contribution to climate change and concerns over its consumption of water and energy are creating markets for technological innovation to minimise those effects. The Johnny Appleseed of what is being called Agriculture 2.0 is a 33-year-old former Wall Street investment banker named Janine Yorio. Her New York firm, NewSeed Advisors, brings together sustainable agriculture entrepreneurs and investors. At the Four Seasons hotel in East Palo Alto , California , last month, NewSeed Advisors attracted a crowd of well-dressed investors from some of Silicon Valley ’s top venture capital firms. They packed a ballroom to hear entrepreneurs pitch start-ups developing everything from non-toxic pesticides and analytical tools for soil analysis to indoor urban farming systems. “If you’re interested in investing in energy and water, you become interested in investing in agriculture,” said Amol Deshpande, a venture partner at Kleiner PerkinsCaufield & Byers, who attended the conference. “A lot of ag opportunities are going to be driven by water,it’s availability and cleanliness.” Yorio’s career had been far a field from farming. She put together corporate deals at Salomon Brothers and then at the private equity firms HVB Capital and NorthStar Capital. She was working on real estate transactions when the market collapsed. Looking for ways to generate income from empty buildings, she explored renting space to companies that grow plants indoors. “In the process of putting together that idea, I started to meet all these ag companies and sensed an opportunity,” saidYorio, whose father owned a farm when she was a child. “Sustainable ag fits neatly into an area that is already well invested, clean tech and life sciences.” She founded NewSeed Advisors last year. Yorio said the firm is advising wealthy individual investors on sustainable agriculture deals and is considering raising its own investment fund. “Sustainable ag smells like clean tech, but it’s not so obscure that you’ve never heard of it, but obscure enough there’s no competition,” said Yorio, who added that investors had approached her about bringing the Agriculture 2.0 conference to Canada , Europe and India . So far the venture capital investments in sustainable agriculture have been modest. Matteucci said his firm had one investment in an agriculture wastewater treatment start-up and was reviewing other potential deals. Deshpande said KleinerPerkins Caufield & Byers had invested in companies developing technology to deal with agricultural water and waste. Khosla Ventures, one of Silicon Valley ’s leading green tech investors, is backing Solum, a company started by three Stanford physics graduates that is developing tools to perform real-time measurement of the nutrient content of soil. Such measurements allow fertiliser to be precisely applied, avoiding nitrogen runoff and contamination of waterways.

Jatropha - As a Diesel substitude

The potential of Jatropha oil as a diesel substitute has already been recognized by Indian scientists, and several landowners in India have even started plantations of this tree. It is however still a very low yielding wild plant, yielding on an average about 200 to 500 kg seed per acre. In fact, this is true of most of the oil-bearing tree species in India. Most of them do not yield more than about 100 to 250 kg of oil per acre. The species of oil-bearing plants that are raised as field crops have been subjected to intense plant breeding input, and therefore yield at least four times as much oil. I agree that Jatropha is a plant that can survive under adverse conditions, but under poor agronomic conditions, the yield would be even lower. And there are many other species, that would give more money per unit area than Jatropha, even on waste land.
The oil plant Jatropha curcas (L) (Jatropha) or physic nut is a multipurpose and drought resistant large shrub or small tree. Although a native of tropical America, it now thrives throughout Africa and Asia. It grows in a number of climatic zones in tropical and sub-tropical regions of the world and can be grown in areas of low rainfall and problematical sites. Jatropha is easy to establish, grows relatively quickly and is hardy. Being drought tolerant, it can be used to reclaim eroded areas, be grown as a boundary fence or live hedge in the arid/semi-arid areas.
The wood and fruit of Jatropha can be used for numerous purposes including fuel. The seeds of Jatropha contains (. 50% by weight) viscous oil, which can be used for manufacture of candles and soap, in the cosmetics industry, for cooking and lighting by itself or as a diesel/paraffin substitute or extender. This latter use has important implications for meeting the demand for rural energy services and also exploring practical substitutes for fossil fuels to counter greenhouse gas accumulation in the atmosphere.
These characteristics along with its versatility make it of vital importance to developing countries subjected to decreasing tree cover and soil fertility because of increasing population and development pressures. Nearly half the world’s poorest people live on marginal lands with the number expected to increase from 500 million to 800 million by 2020. These areas are by definition isolated and fragile, with soils susceptible to erosion and subjected to environmental stresses of deforestation, prolonged droughts, and decreasing soil and ground water. Although southern Africa is rich in biodiversity and production potential, large areas are under semiarid and arid conditions with a moderate-to-high risk of drought. Plants species like Jatropha that can grow on lands not usually attractive for agriculture and supply raw material for industry, fuels for basic energy services and improve environment are therefore an obvious choice that needs to be assessed carefully and comprehensively.

Castor oil export crosses 3 lakh tonne in 2008-09

The Financial Express

New Delhi, 5 May 2009

Castor oil export crosses 3 lakh tonne in 2008-09

At the time when the country’s overall growth of export started showing negative trend in some agri-commodities due to the impact of global economic crisis, export of castor oil has not only buck the trend but also registered a significant growth of 74% during the fiscal year 2008-09. Annual exports were below 2 lakh tonne over the past five years. Castor oil is the substitute of petroleum products. For the first time in the recent years, the total export of castor oil has crossed 3 lakh tonne mark in financial year 2008-09. Total export increased to 3.08 lakh tonne in 2008-09 from 1.76 lakh tonnes in 2007-08, up by 74% thanks to good buying from China . “There are some enquires from China . I think the country exports about 8,000 tonne castor oil per month to China as Chinese buyers prefers small lots in containers,” said Wamanbhai Udeshi, director, Jayant Agro-Organics, a leading exporter of castor oil products. “Shippers are offering castor oil around $1,020-1,030 per tonne (C&F basis) ex-Kandla for next month shipment,” a local broker said. The country has so far exported about 75,000 tonne of castor oil till April during the current calendar year as fresh arrivals of new crop started in last January. Daily arrivals reached to one lakh bags (each of 75 kgs). Traders expect export demand to continue from China . However, there are some enquiries from Europe and the US but hardly any major deals heard, sources said. The country expects 10.5-11 lakh tonne of castor seed crop for the current season. Of which, about 2.5 lakh tonne have already arrived in the major market yards of Gujarat and Rajasthan. Shippers and stockists are major buyers in the market as they feel prices to remain firm over the next few days, a broker said. Castorseed May contracts on NCDEX platform were up Rs 14-15 to trade at Rs 501 per 10 kg on Monday on continued buying support.

Agri still plays vital role in providing jobs: OECD

The Financial Express
New Delhi, 19 March 2009

While the economic importance of the agricultural sector is falling relative to other sectors, it continues to play a vital role in providing employment and contributing to food security especially in countries like Brazil, Chile, India, Russia, South Africa and Ukraine. A report titled “Agricultural Policies In Emerging Economies :Monitoring and Evaluation 2009” by Organisation of Economic Cooperation and Development (OECD) finds that although weather conditions can cause large short-term fluctuations, over the longer-term both agricultural production and, in particular, agro-food trade are growing rapidly. Brazil , Chile , India and Ukraine are net exporters of agro-food products, while China and Russia are net importers. Along with a large number of other countries, the seven emerging economies made various policy interventions in response to higher food prices. The most common policy response taken by the emerging economies - and also worldwide - has been to reduce or suspend import tariffs on food products. The products on which tariffs were reduced, and the time and quantity limit varied between economies, as well as the extent of the tariff reduction. For example, while Brazil has provided tariff-free access for 2 million tonne of wheat, the MFN applied tariff is just 6%. Changes of this magnitude can be expected to make only a limited impact on inflation. The next most common response has been to impose export barriers in the form of export restrictions or export taxes. The measures imposed by India , Russia and Ukraine were particularly significant given the potential quantities involved. Export barriers are likely to lower domestic prices for the products concerned but have serious spill-over effects, impeding price signals to producers and decreasing supplies for importing countries. As far as India is concerned, improvement of rural infrastructure has been given a high priority to make India ’s growth “more inclusive and equitable”. A large part of this rural investment is to be undertaken within a programme Bharat Nirman focussing on the expansion of irrigation area, improved water management, support for rural roads, housing, electrification, telecommunication, research and diversification of economic activities. The National Policy for Farmers, introduced in 2007, places greater emphasis on the economic well-being of farmers and rural development rather than just on agricultural production. In 2006, a new package was introduced to revive the short-term rural co-operative credit structure and to expand credit available to farmers at preferential interest rates. In 2008, the government announced a large scheme to waive overdue and unpaid debt, initially for small and marginal farmers, but then extended to include commercial producers. Retail price controls have been introduced in China , Russia and Ukraine . China and South Africa made changes to their biofuel policies to reduce pressure on food security. Chile and South Africa provided additional direct transfers to those most vulnerable to the effect of higher food prices: a cash-based transfer in Chile and the provision of food in South Africa .

Govt stops wheat sale in North on fears of recycling

The Financial Express
New Delhi, 18 March 2009

The Centre has stopped selling wheat through Food Corporation of India in the growing belt of Punjab , Haryana and other states on fear of recycling as it prepares to procure the grain in a fortnight. Wheat sale under the open market sale scheme (OMSS) has been extended till March-end only in the non-growing states, a government official said, adding that in the growing belt the scheme expired on February 28. “The Centre did not want a situation where the same wheat taken from FCI at a cheaper rate be sold to it at a higher rate when the procurement begins from April 1,” he said. The government in September last year had decided to sell 9.09 lakh tonne of wheat under OMSS while raising it further to 13.84 lakh tonne in phases. Under the scheme, the states were offered wheat from FCI at the minimum support price of Rs 1,000 a quintal (excluding transport and taxes), fixed for 2008-09 season. The reserve price of wheat for states in the northern region, barring Himachal Pradesh, is between Rs 1,023 and Rs 1,063 a quintal, which is below the MSP of Rs 1,080 a quintal for 2009-10 season. The scheme was initially valid for two months but the government extended it to keep a check on domestic prices. It expired on February 28 in the wheat growing belt. Another reason for extending the scheme was the demand for wheat in southern states -- Tamil Nadu, Andhra Pradesh, Kerala, Karnataka -- which have been allotted nearly four lakh tonne out of 11.55 lakh tonne across the country, the official said. “The lifting of wheat, however, stands at 5.95 lakh tonne in the country,” he added. The official also said that the Centre had not extended the scheme of selling wheat to the states, which expired on February 28, as the states lifted only about 80,000 tonne of wheat while the central government wanted to offload nearly one million tonne. Meanwhile, the Centre is all set to start wheat procurement from April 1 for the 2009-10 season and is expecting another bumper purchase. Last year, it had procured 226 lakh tonne of wheat. The government expects a wheat production of 77.78 million tonne this year.

Agri Dept to submit amended proposal to EC

The Agriculture Department today decided to amend its proposal on farm subsidies, which was rejected by the Election Commission (EC). The amended proposal to be submitted to the commission tomorrow stresses on agri-equipment and fertilizer needed in next two months before the start of paddy season in the state. Sources said in the amended proposal it had been recommended farmers be allowed to import mechanised transplanters and laser levellers. It has also sought from the commission permission to distribute gypsum to farmers on subsidised price to treat soil before the onset of paddy season. Sources said the department aimed at facilitating the import of 700 mechanised transplanters and offer subsidy of 50 per cent of the cost of the machine or Rs 1.50 lakh per machine. The department has proposed to give subsidy of 33 per cent or Rs 1.25 lakh per machine on laser levellers. The new proposals are comedown from earlier proposal to allow sale of rotavators, happy seeders and other equipment through over 200 agricultural societies in the state on subsidy to farmers. The department will plead denial of permission for these subsidies would hit t the farmers and the two- year old programme to mechanise paddy transplantation. Meanwhile, Bharatiya Kisan Union (Lakhowal) president Balbir Singh Rajewal met state Chief Electoral Officer Kusumjit Sidhu and requested her to take back the ban on agri subsidies announced by the commission. Rajewal said agri subsidies, including those on mechanised transplanters were essential to ensure smooth transplantation of paddy.. He said use of laser levellers was prerequisite for a farmer wanting mechanised transplantation. Meanwhile, the Election Commission today recommended suspension of Talwara Block Development and Panchayat Officer (BDPO) Baldev Singh. There were complaints he had distributed cheques. The commission also ordered the transfer of two Bathinda naib tehsildars Gurmail Singh and Subhash alleged to be working in their home districts. The commission has also directed the secretary, Punjab State Electricity Board (PSEB) to give report on allegations that the office of PSEB, north under Chief Engineer TS Thind had distributed meters and violated and model code of conduct.