Regoverning Markets South Asia Newsletter (Vol. 15, No. 30 July 06– 13, 2007)

No compromise on wheat import norms Wednesday, July 11,2007 The Times of India

NEW DELHI: India on Tuesday said it will pay more for quality wheat but not expose the country to weed invasion, after the US - miffed at being denied a chance to supply its grain - sought independent tests of the consignments entering the country.

"It is a question of paying more money or inviting weeds which will affect Indian agriculture. Food security is important for us no doubt," Agriculture Minister Sharad Pawar said while reacting to the statement from the US Embassy.

Describing as "unrealistic" New Delhi's phytosanitary requirements for the foodgrain, the US sought independent tests of wheat imported by India.

"India's very low weed seed standard is nearly impossible for any global exporter to meet, raising questions about the reliability of India's import inspection process," the US Embassy statement said.

"We are very disappointed that the Indian government's committee of secretaries and Ministry of Agriculture officials have decided against bringing India's unrealistic wheat import phytosanitary requirements in line with international standards," it said.

Pawar, however, said: "It is difficult for us to compromise on phytosanitary norms... These were fixed long back."

The minister made it known that there were other countries who fulfilled Indian norms for exporting wheat.

"There are other countries that are participating like Argentina, Australia and Russia in the bids. They have fulfilled India's requirement. Government is very particular about the phytosanitary norms. Basically we do not want to bring any weed", he said.

Farmers line up for urea Wednesday, July 11,2007 DAILY STAR

DHAKA: Thousands of farmers in 12 upazilas of Bogra have been lining up at fertiliser distribution outlets in their frantic effort to buy urea for their crops.

A number of fertiliser dealers said low stock of fertilisers caused by inadequate supply is the reason behind the ongoing crisis.

Atul Chandra Saha, manager of Parul Enterprise, a fertiliser dealer in Shariakandi upazila, said for the month of July, only 10 tonnes of urea has been allocated for the store against a requisition of 20 tonnes. Only 13 tonnes of urea was allocated for the dealership last month when the requirement was 20 tonnes.

A frustrated farmer Montu, from Kuptala village in Shariakandi upazila, said that he needed 100 kg of urea for the Aus he had planted on two bighas of land 12 days back. So far he managed to apply only 10 kg urea. His crop will be ruined unless he applies 90 more kg of urea to the paddy field within the next ten days. He is about to give up hope of getting more fertiliser as the local chairman has refused to request for more fertiliser slip for him.

Another farmer, Nasir Uddin, 70, from Gorher Bari village in Gabtoli upazila described a similar situation while waiting his turn at a fertiliser dealer outlet at Baiguni village. He was able to buy only 15 kg urea about 15 days ago for his Aus and other crops on seven bighas of land. Even though he needs 100 kg more urea within the next ten days, the fertiliser slip issued to him will allow him to purchase only half the requirement.

A fertiliser slip for 10 kg urea was issued to Shafiqul from Baibhanga village of the same upazila who lined up at the same fertiliser dealer wishing to purchase 50 kg urea.

Gias Uddin was even more unfortunate. He alleged that he along with a number of other farmers had returned empty handed four consecutive times this season as the same fertiliser dealer refused to sell fertiliser to them.

District Agriculture Extension Officer (DAEO) in Bogra, Abul Bashar, however ruled out any existence of fertiliser crisis in the district saying, "The government allocated [sufficient] fertiliser for this crop season in Bogra against the total requirement."

About 1,000 tonnes of urea have already been allocated in the district till July 10 and over 6,000 tonnes of urea were distributed in the district from April to June this year, said Bashar.

The demand for fertiliser in the district has increased this year due to extensive cultivation of seasonal crops including Aus paddy. A staggering 26,000 hectares of land have been cultivated across the district this year as opposed to 16,000 hectares last year, the DAEO explained.

NARC to start potato farming in hills Wednesday, July 11,2007 THE HIMALAYAN TIMES

KATHMANDU: To solve the production, transportation and storage problems of potatoes in the high altitude mountains of the country, Nepal Agricultural Research Council (NARC) is going to start alternative potato farming in the high hills of Nepal.
Potato is a major staple food in the high hills. Record at the Food and Agriculture Organisation (FAO) shows that people residing in high hills consume twice as much potato as those in Tarai. But its production in the high hills is very expensive and transportation is difficult, said Ram Chandra Adhikari, senior scientist at the NARC.

In the alternative cultivation, potato seeds replace potato tubers, Adhikary said, adding: "That would be cheaper and easier for the people in high hills who are practicing traditional method." According to him, in the traditional cultivation three ton potato tubers are required to plant potatoes in a hector area, whereas 100 grams of potato seeds can replace them in alternative farming. The 100 grams seed could be bought in about Rs 2,000 and there would be no storage problem. "Transportation of the tubers from different places to the hills have always been a great problem, but 100 grams potato seeds could be carried even in pockets and hand bags," he said. He added the seed cultivation is safer from the risk of various diseases likely to be in potato tubers.

Adhikari said the programme is scheduled to start by the end of this year. "Being the first year of the trail, we have planned to carry out the programme in Jumla this time." According to him, agriculture development programmes and Baagbani farm in Jumla are helping them to carry out the programme locally. Data of the FAO states that potato plantation covers seven per cent of gross cropped area in Nepal, which is about 150,000 hectors. Fifty per cent of the plantation is done in the mid-hills.

Vigil on quality of imported wheat Thursday, July 12,2007 The Hindu

NEW DELHI: Union Agriculture Minister Sharad Pawar on Wednesday said India will not compromise on quality norms to facilitate the entry of U.S. wheat into the country. India's initial plan to purchase 10 lakh tonnes of wheat for delivery between August and October to augment stocks for the Public Distribution System was cancelled due to high global prices.

Speaking to media persons after a review meeting of the Cabinet Committee on Prices (CCP) chaired by Prime Minister Manmohan Singh, Mr. Pawar said the country's interest had to be kept in mind.

There are phyto-sanitary guidelines with regard to the exotic weeds that can be present in foreign wheat. These standards have been "accepted, honoured and implemented" by wheat exporting countries, which include Australia, Russia, Ukraine and Argentina.

The CCP reviewed the prices and availability of essential food commodities in the domestic market. It also looked at the international scene with regard to the production and availability of foodgrains, edible oils and pulses.

Mr. Pawar said the U.S. maintains that it is not in a position to accept India's policy on quality norms and wants us to dilute our guidelines. "But we have seen the impact (parthenium weed) with the import of the PL480 ‘green revolution' wheat in the 60's. We, therefore, have to be careful. We don't want to compromise on anything that affects farmers and crops."

Mr. Pawar said the U.S. was worried that India would have to spend more on importing wheat from other countries. On Tuesday the U.S. government had expressed its "disappointment" with India's decision not to relax quality specifications. "We are very disappointed that the Indian government's Committee of Secretaries and Ministry of Agriculture officials have decided against bringing India's unrealistic wheat import phyto-sanitary requirements in line with international standards," said a U.S. Embassy statement.

Mr. Pawar said the government had decided to wait for procurement season to finish before deciding on the quantities of wheat to be imported. The Food Corporation of India and State Government agencies have procured 110.9 lakh tonnesagainst 92.25 lakh tonnes procured last year.

Regarding the rising prices of potatoes and onions, Mr. Pawar said that it was a temporary phenomenon due to heavy rains in potato and onion growing States.

On his decision not to contest Lok Sabha elections, Mr. Pawar said he had been either in the Maharashtra Legislative Assembly or in the Parliament for 41 years and "now someone else should come".

He, however, dismissed speculation about his participation in the race for forthcoming elections to the office of Vice-President. "I am not in the race for Vice-President. I will not accept it."

Fertiliser crisis affects Aman Thursday, July 12,2007 NEW AGE

DHAKA: Production of transplanted Aman paddy and other crops will be severely hampered because of the acute shortage of urea in Jhenaidah. The crisis has been caused by the Department of Agriculture Extension which has reduced its supply of the fertiliser by nearly 50 per cent this year.

The DAE has supplied only 3,700 tonnes this year though last year it supplied 7,230 tonnes.

Sources in the DAE said that they have fixed a target to produce 3,64,000 tonnes of paddy in 91,000 hectares of land, though they can supply only 3,700 tonnes of fertiliser.

The DAE has told Jhenaidah's farmers to use small quantities of fertiliser in a planned manner.

About 10,000 tonnes of urea are required in Jhenaidah to ensure adequate production of T-Aman rice.

Some farmers of Ganna Bazar in Sadar upazila said that although they have been preparing seed-beds for T Aman farming, they didn't get an adequate quantity of urea from the dealers.

Some field-level staffers of the DAE, who are locally known as block supervisors, told New Age, ‘We have been told to motivate the farmers to reduce the use of urea by 50 per cent this year.'

Abdul Kader Sarker, deputy director of the DAE in Jhenaidah told New Age, ‘We are trying to convince the farmers to stop misuse and utilise the urea in a proper way, which will reduce their need for fertilisers.'

Najibullah, a farmer of the area, told New Age, ‘We can't change our farming techniques overnight so the shortage of urea will decrease our production and shrink our earning.'

Mujibur brings about mango revolution Friday, July 13,2007 NEW AGE

CHAPAINAWABGANG: THE individual effort of Mujibur Rahman has created a revolution with his hybrid-mango cultivation in the Barind (Chapainawabganj, Rajshahi and Naogaon) area.

Now around one thousand hybrid-mango orchards, with his own auspices and following his example, have been set up in the region and some other parts of the country in the last seven years only.

Mojibur, with his little education, built up his ‘Purbasha Nursery' on the dry land in a remote area, Ghatnagar at Sapahar under Porsha upazila in Naogaon, 72 kilometres away from the Chapainawabganj town. He spread his project further with 450 species of hybrid mangoes of 16 to 17 varieties in the leased 1.32 acres on the banks of a pond from the Nachnahar crematory committee.

The orchard has the Amrapali, Pahutan, Lakhna, Totapuri, Chosham, BARI-4, Bishawnat, Hybrid-10, Benision, Alfanso and many other foreign and local species. The aristocratic and colourful species heightened the beauty of the orchard.

His success has made others so enthusiastic that thousand of orchards have grown up in the area, which has been in production for the last five years. Ninety per cent of the plants have produced mangoes. Already many farmers earned a lot of amount.

Mujibur, while talking to New Age, expressed his despair at government assistance so far.

He said once a foreign organisation came forward with financial assistance. But the initiative failed due to non-cooperation from a section of government officials, he grumbled.

‘I have done my work, now the government should come forward to spread this invention. And if we explore the prospect of mango cultivation in the region, the country could earn a huge foreign currency by exporting the popular fruit,' said Mojibur.

A scientist of the Regional Horticulture Research Centre (former Mango Research Centre), Dr Zomir Uddin, terming it as a revolution, said the government had been trying to help the mango cultivation in the Barind region.

Deputy director of the Department Agriculture Extension Asim Kumar Malakar said the opportunity, produced by an individual in such a drought-stricken area, should be taken by the government to develop and spread it to a great extent.