INDIA
Monsoon uncertainty raises agricultural and policy concerns
Fear of erratic monsoon may have persuaded the Government to allow cheap import of yellow pea and crude edible oils. Government policies aim to stabilise food supply, protect farmers' interests, and manage inflation through imports
BUSINESS
Initial India-Australia agricultural trade data shows that FTA has helped farmers
India’s agricultural exports have increased. For sure, Australia’s exports have increased more, driven mainly by lentils. The trade deal with Australia is a success story even if full potential of the deal is yet to be realised for Indian exports
BUSINESS
A relatively warmer winter doesn’t seem to have affected wheat crop
In wholesale markets, wheat price has inched upward over the last six months to register an inflation rate of 9.75 percent in January. A relatively warm winter has added to anxiety about the price trend of this critical cereal which will have a bearing on food inflation. Despite adverse developments, initial signs suggest that we are not likely to see a repeat of 2022, when a surge in temperature undermined wheat output
BUSINESS
Punjab’s farmers need a price stabilisation mechanism to move away from paddy
The demand for a legal right to realise MSP for all the crops for which it is declared by the Union Government may be hard to accept in a hurry, but it may be a good idea to explore other means to reduce fluctuation in prices of major crops. This will help all farmers.
BUSINESS
Why Punjab’s rice procurement this year faces problems
Punjab is India’s largest source of rice for PDS. A severe storage crunch there leading to delayed procurement of the current harvest is distortionary. The immediate solution is to quickly move rice procured last year from Punjab’s godowns while hiring more storage space. The long-term solution is to find ways to push some farmers in Punjab and Haryana into crops other than paddy
BUSINESS
Agri trade policy needs to be more agile to keep pace with rural recovery
Kharif output appears promising and government has already begun to tweak trade policy to reflect ground reality in soybean. There’s a compelling argument to do the same for rice and sugarcane
POLITICS
Lateral entry in government is essential for highly specialised functions, not everywhere
The bottom line is that expertise from outside the government should be highly selective and only persons with proven experience and competence should be taken through lateral entry. Within government, expertise can be built by posting officers with high degrees in relevant ministries
BUSINESS
Rice stocks with government are at record levels; it’s time to allow exports
In the last 10 years, rice stocks were never as high but inflation is in double digits possibly because high procurement is squeezing supply in private market. Lifting export restrictions can ease pressure to procure and thereby restore balance
BUSINESS
Monsoon: June rainfall disappoints but its July that’s crucial for food inflation
Picture is unclear. Reservoir levels are low but paddy procurement is good. Good rainfall this month can change everything
BUSINESS
Rollback Under Duress: How reform attempts in the sugar and fertiliser sectors have fared
Attempts to free sugar mills from government control ended because the mills couldn’t cope with populist sugarcane pricing and production gluts. Decontrol of prices of phosphatic and potassic fertilisers was reversed after a decade of moderate success because of global supply shocks. Complete deregulation will have to wait for a developed India
INDIA
Are farmers reluctant to diversify beyond paddy and wheat?
The reason for the agitation by Punjab’s farmers is a desire to reduce area under paddy but still earn similar income from other crops Siraj Hussain and Kriti Khurana
INDIA
Why a legal guarantee of MSP is fraught with challenges
The farm unions demanding a statutory guarantee of minimum support prices marching towards Delhi have put the Government of India in a bind. Not only is a legal guarantee tough to implement and sustain, the expert panel's report that could have suggested a way ahead is not available with the government
BUSINESS
Agriculture: Budget Speech of 2024 reflects rectitude even if general elections are near
For agriculture, there were no surprises like the PM-Kisan scheme of 2019. The FM rightly took the credit for handsome hikes in the Minimum Support Prices and proactive management of food inflation. Introduction of Nano DAP fertilisers is welcome but Nano Urea effectiveness needs a review. Improving fisheries productivity is good news
BUSINESS
Budget 2024: What agriculture needs
The themes that can be focussed on in the interim budget include taking out more people out of agriculture towards other gainful employment, preventing soil and water resources and pursuing crop diversification, prioritising horticulture, livestock and fisheries
BUSINESS
Are wheat and rice export almost nationalised?
While restrictions on the export of rice continue, the government is permitting certain quantities to be exported on diplomatic considerations. These relaxations from export restrictions are decided by the ministry of external affairs in consultation with the ministry of food and public distribution
BUSINESS
Extension of free foodgrain scheme: India needs to diversify the diets of the poor
In order to enable people to buy more nutritious food, India should be moving towards direct benefit transfer, especially for people who are not very poor. One hopes that in food surplus states, DBT for food will be tried so people can buy pulses, meat, fish or other proteins
BUSINESS
MSP continues to be important for India’s food security
As wheat and rice are distributed to 81.35 crore people under the National Food Security Act 2013, the government needs to procure sufficient quantities of the two food grains. The decision to give a handsome increase in MSP of Rabi crops of 2023-24 should be seen in this light
TRENDS
Rest in Peace, Dr Swaminathan. You helped India to become food secure
Today, the Green Revolution is frequently criticised for worsening the level of underground water, deterioration of the quality of soil, excessive use of fertilisers and chemical pesticides and polluting the water. Swaminathan was aware of the dangers of monoculture and the need to conserve soil fertility. He spoke against the indiscriminate use of chemical pesticides
BUSINESS
Government has limited options to address crash in prices of tomato, other perishables
Not having much choice, the government resorts to the Essential Commodities Act to impose stock limits. Going forward, the presence of farmer producer organisations and cooperatives can help by setting up small cooling chambers in the producing areas. Linking them to urban markets can boost farmers’ price realization to some extent
BUSINESS
Will unrelenting food inflation sour the festive season ahead?
As the festive season approaches, households are reeling from spiraling prices in many commodities and vegetables. Government efforts to check price rise by augmenting supplies must be complemented by private trade.
BUSINESS
In real terms, MSP increase has been moderate in both UPA & NDA governments
The management of food inflation has been much better during the NDA government and despite the Covid-19 pandemic and the global crisis in the wake of the Russian war on Ukraine, it has been able to hold the inflation at 5.1 percent vis-à-vis 8.1 percent average inflation during the UPA regime.
BUSINESS
Damaged Wheat Procurement: States to bear the burden of relaxed specifications
The damage to the standing crop of wheat in MP, Punjab, Haryana and Rajasthan was due to relatively high temperatures in February and untimely rains in March 2023. The governments of MP and Punjab have promised to pay full MSP for such grain
BUSINESS
Building awareness about nutrition necessary to end malnutrition in South Asia
The general awareness about nutrition in South Asia is extremely poor and there is hardly any evidence of a focused campaign to educate people about the importance of nutritious and diversified diets. Packaged food has made inroads in the rural areas of India and even poor mothers, working as agricultural labour, prefer feeding biscuits and noodles to their children
BUSINESS
How effective were agriculture development funds announced in Budgets
The role envisaged for the Union government in these funds is limited to helping the creation of an ecosystem that supports long-term debt financing through priority sector lending
