Though rice, wheat and sugar production is expected to be at comfortable levels, production of pulses and edible oils may fall short of requirement this year, said K.V. Thomas, Union Minister of State for Consumer Affairs, Food and Public Distribution.
Talking to a group of journalists after inaugurating the Centenary Building of National Test House (Southern Region) yesterday, he said according to the assessment of the Meteorology Department and the Ministry of Agriculture, this year production of rice and wheat will be as good as last year.
Last year, production of paddy was to the tune of about 103 million tonnes and wheat was to the tune of 94 mt. More or less, the same quantity of rice and wheat is expected this year as well.
He said his department has discussed with various State Government officials for the procurement of rice and wheat. All arrangements have been made, including jute bags.
His Ministry has called for a meeting of the Food and Public Distribution Ministry officials of all states on October 29 and 30 in Delhi. All other procurement details will be worked out that time.
On storage capacities, he said five years ago there was a capacity to store 55 mt of foodgrains. Now, it has been expanded to 75 mt. By the end of this year, another 45 lakh tonne capacity will be added.
About 151 lakh tonnes of new capacity will be added by the end of 2013. Besides, two million tonnes of silos will also be constructed. “Hence, I don’t see any problem as far as the storage issue is concerned.”
Regarding sugar, he said last year the production was projected at 240 lakh tonnes. However, finally it ended up with 262 lakh tonnes, while the domestic need was only 220 lakh tonnes.
This year, the projection is at 230 lakh tonnes, which is quite sufficient. “We think, even this year, sugar production will surpass the projection and go up to 240-245 lakh tonnes,” he said.
But, he said his Ministry is “slightly worried” about the pulses and edible oils situation. Chances are that the production of pulses and edible oil come down this year. Even internationally, availability is slightly low.
With this in mind, he said, the Government has decided to continue with the supply of pulses and edible oils at subsidised price. This year, the subsidy on pulses will be Rs 20 a kg and on edible oils Rs 15 a litre. States are also allowed to import pulses and edible oil for distribution and it will be subsidised by the Central Government, he said.
Besides, the Central Government has decided to computerise the Public Distribution System end-to-end — from the Food Corporation of India godowns to state-run ration shops, every movement will be computerised. It is a 50:50 project, funded by the Central and respective State Governments.
Earlier there were 20 crore ration cards in the country. After the computerisation process began in some states, two crore cards were found to be bogus and eliminated from the system, he said. “PDS system has to be modernised. All the loopholes are to be plugged to strengthen the system, and make it more efficient,” he said.
Talking about the Food Security Bill, he said the Bill is being considered by the Parliament Standing Committee, and is likely to be passed. And, the Standing Committee is expected to submit its opinion in a month. “The Bill may be passed in the coming Winter Session,” he said.
Answering a question on wheat exports to Iran, he said the exports are going on under Open General Licence scheme. The central pool has 80.5 mt of wheat, while what is required for public distribution is only 55 mt. So, exports will continue till the need to stop it arises.
On food subsidy bill and whether the government plans any cut, he said the government is bound to give food items on subsidised rates. At present, he said, food subsidy alone accounts for Rs 88,000 crore, and it will continue. “There is nothing to be worried,” he said.
October 7, 2012
October 6, 2012
Official amendments to the Forward Contracts (Regulation) Amendment Bill, 2010
The Union Cabinet has approved the proposal to move official amendments to the Forwards Contracts (Regulation) Amendment Bill, 2010 (the Bill, 2010), based upon the recommendations of the Parliamentary Standing Committee of the Ministry of Consumer Affairs, Food & Public Distribution in its 15th Report, in the next session of Parliament.
After the Bill is passed and enacted by Parliament, Forward Market Commission (FMC) as a regulator will get autonomy and power to regulate the market effectively. New products like `options` will be allowed in the commodity market. This will benefit various stakeholders including farmers to take benefit of `price discovery and `price risk management`. The Bill would enhance public accountability of the Regulator by providing for an Appellate Authority.
The recommendations of the Committee with regard to definition of the "Commodity Derivative" in Clause 3, establishment and constitution of Forward Markets Commission in Clause 4, term of office of the Chairman and every other whole time members in Clause 5, accounts and audit in Clause 9, penalties for contravention of certain provisions of Chapter IV in Clause 25 of the Bill, 2010 have been accepted and are proposed to be incorporated as official amendments. The amendment in Clause 25 will require consequential amendment in Clause 26, which is also proposed to be included in the official amendments.
Background:
The Forward Contracts (Regulation) Act provides for the regulation of commodity futures markets in India and the establishment of the Forward Markets Commission (FMC). While the markets have been liberalized with effect from April, 2003 and modern institutional structures are in the process of being evolved, yet the market regulator, FMC is largely functioning in its traditional format.
Many of the existing provisions of the Forward Contracts (Regulation) Act need changes to strengthen and reinforce legal provisions to meet the requirements of changing environment. In order to amend further the Forward Contracts(Regulation) Act, the Bill, 2010 was introduced in the Lok Sabha on 6.12.2010. The Bill, 2010 went through examination by the Committee which submitted its 15th Report on 22nd December, 2011.
After the Bill is passed and enacted by Parliament, Forward Market Commission (FMC) as a regulator will get autonomy and power to regulate the market effectively. New products like `options` will be allowed in the commodity market. This will benefit various stakeholders including farmers to take benefit of `price discovery and `price risk management`. The Bill would enhance public accountability of the Regulator by providing for an Appellate Authority.
The recommendations of the Committee with regard to definition of the "Commodity Derivative" in Clause 3, establishment and constitution of Forward Markets Commission in Clause 4, term of office of the Chairman and every other whole time members in Clause 5, accounts and audit in Clause 9, penalties for contravention of certain provisions of Chapter IV in Clause 25 of the Bill, 2010 have been accepted and are proposed to be incorporated as official amendments. The amendment in Clause 25 will require consequential amendment in Clause 26, which is also proposed to be included in the official amendments.
Background:
The Forward Contracts (Regulation) Act provides for the regulation of commodity futures markets in India and the establishment of the Forward Markets Commission (FMC). While the markets have been liberalized with effect from April, 2003 and modern institutional structures are in the process of being evolved, yet the market regulator, FMC is largely functioning in its traditional format.
Many of the existing provisions of the Forward Contracts (Regulation) Act need changes to strengthen and reinforce legal provisions to meet the requirements of changing environment. In order to amend further the Forward Contracts(Regulation) Act, the Bill, 2010 was introduced in the Lok Sabha on 6.12.2010. The Bill, 2010 went through examination by the Committee which submitted its 15th Report on 22nd December, 2011.
October 2, 2012
Indian Rice Exports Eased Global Prices
Agriculture Minister, Shri Sharad Pawar yesterday sought to highlight India’s role in stabilising global food supplies and moderating price rise.
The Minister was addressing the meeting of the ‘High Level Regional Consultation on Policies to Respond to High Food Prices in Asia and the Pacific Region’ organized by FAO at Bangkok.
From an importing nation India has now become a nation that exports wheat and rice, the Agriculture Minister said. “I am glad to inform that our efforts are showing excellent outcomes. From having to import about 6.5 million tonne of wheat in 2006 and 2007 we are now not only meeting the domestic demand but have also begun contributing to global supply through exports. Similarly, in case of rice, we faced problems in 2009 as our buffer stocks kept for supplies under public distribution system had dipped due to inadequate production. In the past twelve months, however, due to record production over the years, we have already exported about 8 million tonne of rice. The exports from India has not only stabilized the global supplies but have helped in easing the ruling high prices to affordable levels.”
Stating that increasing agricultural production and diversifying the production base has become the need of the hour, he said, “India has been following since 2007 the strategy of agricultural development by widening the production base and focusing attention to high potential low producing areas through intensive promotion of technologies in order to bridge the yield gaps.”
Laying stress on the global food economy in domestic context he went on to state “In order to better understand the global food economy in domestic context we in India have initiated a study project on developing Agricultural Outlook where situation analysis and forecasts are prepared periodically for the short and the medium terms. We are grateful to FAO for supporting this initiative with technical assistance on international exposure and capacity building. We believe that informed decisions based on sound analysis help develop better understanding of food situation internationally and locally.”
Informing the various international organizations and policy experts gathered at the consultation meeting he informed: “India is actively involved in the evolution of these mechanisms, for shaping the information system for a sound real time analysis of the developing situation on supply, stocks, trade, demand and prices of food grains in different parts of the world. We believe that credible information generated by the system would be a valuable input for any policy initiative at the country level should any of the supply, price or trade shocks cause disruption in food availability. Better information is the key to being better prepared.”
He further said, “South Asian Countries have started a SAARC Food Bank to service the needs of the member countries in case of any supply shock as a result of calamities or otherwise. There is need to strengthen such regional cooperation instruments to respond to the developing global food crisis. It is our collective responsibility to reach out to those vulnerable populations whose access to food is compromised due to high food prices.”
The Minister was addressing the meeting of the ‘High Level Regional Consultation on Policies to Respond to High Food Prices in Asia and the Pacific Region’ organized by FAO at Bangkok.
From an importing nation India has now become a nation that exports wheat and rice, the Agriculture Minister said. “I am glad to inform that our efforts are showing excellent outcomes. From having to import about 6.5 million tonne of wheat in 2006 and 2007 we are now not only meeting the domestic demand but have also begun contributing to global supply through exports. Similarly, in case of rice, we faced problems in 2009 as our buffer stocks kept for supplies under public distribution system had dipped due to inadequate production. In the past twelve months, however, due to record production over the years, we have already exported about 8 million tonne of rice. The exports from India has not only stabilized the global supplies but have helped in easing the ruling high prices to affordable levels.”
Stating that increasing agricultural production and diversifying the production base has become the need of the hour, he said, “India has been following since 2007 the strategy of agricultural development by widening the production base and focusing attention to high potential low producing areas through intensive promotion of technologies in order to bridge the yield gaps.”
Laying stress on the global food economy in domestic context he went on to state “In order to better understand the global food economy in domestic context we in India have initiated a study project on developing Agricultural Outlook where situation analysis and forecasts are prepared periodically for the short and the medium terms. We are grateful to FAO for supporting this initiative with technical assistance on international exposure and capacity building. We believe that informed decisions based on sound analysis help develop better understanding of food situation internationally and locally.”
Informing the various international organizations and policy experts gathered at the consultation meeting he informed: “India is actively involved in the evolution of these mechanisms, for shaping the information system for a sound real time analysis of the developing situation on supply, stocks, trade, demand and prices of food grains in different parts of the world. We believe that credible information generated by the system would be a valuable input for any policy initiative at the country level should any of the supply, price or trade shocks cause disruption in food availability. Better information is the key to being better prepared.”
He further said, “South Asian Countries have started a SAARC Food Bank to service the needs of the member countries in case of any supply shock as a result of calamities or otherwise. There is need to strengthen such regional cooperation instruments to respond to the developing global food crisis. It is our collective responsibility to reach out to those vulnerable populations whose access to food is compromised due to high food prices.”
September 30, 2012
CACP favours MSP hike for rabi pulses, oilseeds
The Commission for Agricultural Costs and Prices (CACP) has recommended to the Government a hike in minimum support price for winter-sown pulses and oilseeds by up to Rs 500 a quintal.
The Agriculture Ministry will move a Cabinet note on this after seeking comments from the ministries concerned and the state governments.
A senior government official said the CACP has not recommended raising the minimum support price (MSP) of wheat and barley for the 2013-14 rabi marketing season (April-March) in view of excess supply in the country following record production last year.
It suggested keeping the MSP of wheat and barley unchanged at Rs 1,285 per quintal and Rs 980 per quintal, respectively.
The Commission has recommended no increase in wheat MSP because the wholesale prices of the grain are currently ruling below support price at Rs 1,160 per quintal.
But the production cost was around Rs 1,066 per quintal in 2012-13. A similar trend was seen in barley, the official said.
“However, the CACP has suggested the Government to announce 10 per cent bonus to wheat and barley farmers if exports are banned next year,” the official said.
To boost the production of pulses and oilseeds, the CACP has proposed increase in the MSP of gram by Rs 200 to Rs 3,000 a quintal and masur dal by Rs 100 to Rs 2,900 a quintal for 2012-13 rabi season.
Similarly for oilseeds, the Commission has recommended increase in the support price of mustard seed by Rs 500 to Rs 3,000 a quintal and safflower by Rs 300 to Rs 2,800 per quintal.
The reasons given were that the cost of production of pulses and oilseeds has increased substantially over the last few years and the increase in support price will encourage farmers to grow these crops, the official said.
While sowing in rabi (winter) season starts from October, the harvesting of crops is undertaken during April-March.
The Government aims to achieve foodgrains production of 130 million tonnes during the 2012-13 rabi season. Of this, 86 mt would be wheat, 12.5 mt of pulses, and 15 mt of rice.
Source: Hindubusinessline
The Agriculture Ministry will move a Cabinet note on this after seeking comments from the ministries concerned and the state governments.
A senior government official said the CACP has not recommended raising the minimum support price (MSP) of wheat and barley for the 2013-14 rabi marketing season (April-March) in view of excess supply in the country following record production last year.
It suggested keeping the MSP of wheat and barley unchanged at Rs 1,285 per quintal and Rs 980 per quintal, respectively.
The Commission has recommended no increase in wheat MSP because the wholesale prices of the grain are currently ruling below support price at Rs 1,160 per quintal.
But the production cost was around Rs 1,066 per quintal in 2012-13. A similar trend was seen in barley, the official said.
“However, the CACP has suggested the Government to announce 10 per cent bonus to wheat and barley farmers if exports are banned next year,” the official said.
To boost the production of pulses and oilseeds, the CACP has proposed increase in the MSP of gram by Rs 200 to Rs 3,000 a quintal and masur dal by Rs 100 to Rs 2,900 a quintal for 2012-13 rabi season.
Similarly for oilseeds, the Commission has recommended increase in the support price of mustard seed by Rs 500 to Rs 3,000 a quintal and safflower by Rs 300 to Rs 2,800 per quintal.
The reasons given were that the cost of production of pulses and oilseeds has increased substantially over the last few years and the increase in support price will encourage farmers to grow these crops, the official said.
While sowing in rabi (winter) season starts from October, the harvesting of crops is undertaken during April-March.
The Government aims to achieve foodgrains production of 130 million tonnes during the 2012-13 rabi season. Of this, 86 mt would be wheat, 12.5 mt of pulses, and 15 mt of rice.
Source: Hindubusinessline
September 24, 2012
117.18 MT Food grain Production Estimated in the Kharif Season
As per the First Advance Estimates of production of Kharif crops, 117.18 million tonnes (MT) food grains is likely to be produced in the current season.
These production estimates are higher than the average of the first advance estimates of the last five years (113 MT). Final estimates are generally 5 to 10% higher than the first estimates. Even as compared to the average of final estimates (118.86 MT), the current estimates are lower by 1.68 million tonnes or about 1.4% despite deficient and late rains this year.
These estimates were released by Agriculture Minister, Sharad Pawar today. Speaking on the occasion, the Minister said, the estimates were higher than expectations considering the truant monsoon rains.
The assessment of production of different crops is based on the feedback received from States and validated with information available from other sources.
The estimated production of major crops during Kharif 2012-13 is as under:
Food grains ‒ 117.18 million tonnes
Rice ‒ 85.59 million tonnes
Coarse Cereals ‒ 26.33 million tonnes
Maize ‒ 14.89 million tonnes
Pulses ‒ 5.26 million tonnes
Tur ‒ 2.78 million tonnes
Urad ‒ 1.14 million tonnes
Oilseeds ‒ 18.78 million tonnes
Soyabean ‒ 12.62 million tonnes
Groundnut ‒ 3.82 million tonnes
Castorseed ‒ 1.40 million tonnes
Cotton ‒ 33.40 million bales (of 170 kg each)
Sugarcane ‒ 335.33 million tonnes
As per 1st advance estimates, production of Rice estimated at 85.59 million tonnes, though lower as compared to last year’s record Kharif production, is higher than the average production of 83.17 million tonnes.
The estimated production of Coarse Cereals, is however, lower than average production by 3.65 million tonnes mainly on account of loss in area coverage under Bajra and Maize in the States of Gujarat, Haryana, Maharashtra, Karnataka and Rajasthan.
The estimated production of Kharif Pulses is also lower than the average production by 0.45 million tonnes mainly due to shortfall in Moong and other Kharif Pulses.
Though there is a significant increase in estimated production of soya bean, yet due to decline in the production of Groundnut, total production of Kharif Oilseeds estimated at 18.78 million tonnes is lower than the average production by 0.61 million tonnes.
The current year’s production of Sugarcane estimated at 335.33 million tonnes is higher by 10.22 million tonnes as compared to average production.
The estimated production of Cotton at 33.40 million bales (of 170 kg each) has registered an increase of 5.32 million bales as compared to average cotton production of 28.08 million bales. Production of Jute is also estimated to be marginally higher than the average production.
These production estimates are higher than the average of the first advance estimates of the last five years (113 MT). Final estimates are generally 5 to 10% higher than the first estimates. Even as compared to the average of final estimates (118.86 MT), the current estimates are lower by 1.68 million tonnes or about 1.4% despite deficient and late rains this year.
These estimates were released by Agriculture Minister, Sharad Pawar today. Speaking on the occasion, the Minister said, the estimates were higher than expectations considering the truant monsoon rains.
The assessment of production of different crops is based on the feedback received from States and validated with information available from other sources.
The estimated production of major crops during Kharif 2012-13 is as under:
Food grains ‒ 117.18 million tonnes
Rice ‒ 85.59 million tonnes
Coarse Cereals ‒ 26.33 million tonnes
Maize ‒ 14.89 million tonnes
Pulses ‒ 5.26 million tonnes
Tur ‒ 2.78 million tonnes
Urad ‒ 1.14 million tonnes
Oilseeds ‒ 18.78 million tonnes
Soyabean ‒ 12.62 million tonnes
Groundnut ‒ 3.82 million tonnes
Castorseed ‒ 1.40 million tonnes
Cotton ‒ 33.40 million bales (of 170 kg each)
Sugarcane ‒ 335.33 million tonnes
As per 1st advance estimates, production of Rice estimated at 85.59 million tonnes, though lower as compared to last year’s record Kharif production, is higher than the average production of 83.17 million tonnes.
The estimated production of Coarse Cereals, is however, lower than average production by 3.65 million tonnes mainly on account of loss in area coverage under Bajra and Maize in the States of Gujarat, Haryana, Maharashtra, Karnataka and Rajasthan.
The estimated production of Kharif Pulses is also lower than the average production by 0.45 million tonnes mainly due to shortfall in Moong and other Kharif Pulses.
Though there is a significant increase in estimated production of soya bean, yet due to decline in the production of Groundnut, total production of Kharif Oilseeds estimated at 18.78 million tonnes is lower than the average production by 0.61 million tonnes.
The current year’s production of Sugarcane estimated at 335.33 million tonnes is higher by 10.22 million tonnes as compared to average production.
The estimated production of Cotton at 33.40 million bales (of 170 kg each) has registered an increase of 5.32 million bales as compared to average cotton production of 28.08 million bales. Production of Jute is also estimated to be marginally higher than the average production.
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