Regoverningmarkets.org South Asia (Vol. 23, No. 38 September 01 – September 07, 2007)

Farmer suicides fall in M'rashtra: Pawar Saturday, September 01,2007 The Hindu

MUMBAI: Union agriculture Minister Sharad Pawar said on Friday that the media were not doing justice to the issue of farmers' suicides in Vidharbha. Briefing the press after a joint review of agriculture by Prime Minister Manmohan Singh, Mr. Pawar said he came to the conclusion after hearing the State government's presentation on the package for farmers.

Mr. Pawar said the State's presentation showed there was a substantial improvement in the situation. The State government figures showed a fall in the number of suicideshe said. He, however, said he did not want to comment on the statistics in response to questions.

Speaking on behalf of the Prime Minister, Mr. Pawar seemed satisfied with the efforts of the Maharashtra government. Referring to the Vidharbha package, Chief Minister Vilasrao Deshmukh made a slew of suggestions to improve it and the Prime Minister said these could be incorporated.

Dr. Singh conducted a joint review of agriculture in Maharashtra on Friday along with Mr. Pawar, Montek Singh Ahluwahlia, Member, Planning Commission, and others, and identified some key areas for achieving a 4.4 per cent growth in the sector in the 11th Five-Year Plan period. The issues discussed were agriculture, irrigation, agriculture credit, problems of the sugar industry and cane farmers. Mr. Pawar said the State and Central governments had taken the subject of suicides seriously and this was the reason the Prime Minister announced a Rs. 3,750-crore package last year.

The Additional Central Assistance (ACA) of Rs. 25,000 crore for supporting the agricultural sector would be called the Rashtriya Krishi Vikas Yojana, Mr. Pawar said. This scheme would also give top priority to food security and it would be provided as aid and not in the form of loans. The amount would be given to the States over a five-year period and each State had to prepare innovative schemes to avail itself of this money.

Earlier, Dr. Singh during the review of the agriculture sector said the growth rate of Maharashtra was unsatisfactory in the Ninth Plan and in the first three years of the 10th Plan. However, there was a recovery in the last two years. The farm sector is emerging from a long period of stagnation. He said productivity of major crops, poor irrigation cover and extensive cotton farming were areas of concern. He called on the State to prepare focused, decentralised district plans which take into account local realities and opportunities and said irrigation projects must be completed on time and that they must produce the desired benefits. The state also needed to work hard on improving credit.

In the Maharashtra resolution after the joint review, 18 issues were identified as focus areas including increasing production of cereals, pulses and oilseeds, increasing watershed development, harnessing the potential of horticulture for export, taking steps for legal reforms by amending state cooperative societies act, according priority to seeds production and promoting organic agriculture.

Saffron - the most expensive spice Monday, September 03,2007 DAWN

SAFFRON is the most expensive of all the spices, has vast curative value and is extensively used in confectioneries for dyeing food preparations and elegant perfumes.

Medicinally it is carminative and promotes perspiration when taken as infusion. The Greeks and Romans would strew saffron on floors of public meeting places to scent the air, and its tea was drunk to invigorate the spirits.

Pure saffron has spicy, aromatic, pungent and slightly bitter taste with penetrating characteristic fragrance. A very little quantity is required to colour and flavour food preparations. It contains riboflavin and the pigment crocin which is very strong. It can be drunk warm as a most stimulating tea adding just a pinch (4gm) of it to 20 fluid ounces of boiling water.

Saffron has its origin from the Asia Minor from where it spread far and wide to Iran, China, Russia, Turkey, Spain, Holland and England. However, Indian-held Kashmir is well known for its cultivation and quality of product. Pure saffron is contained in orange red stigmas of crocus flower.

The stigmas are picked by hand when flowers are not yet open, which may be dried in shade. It approximately requires 70,000 flowers to achieve half kilo gram avoirdupois of saffron. The cost of production is very high because of low production, labour and cost intensive bulbs.

Saffron is botanically called Crocus sativus from the family Iridaceae. It is a perennial plant, has lilac colour flowers, with narrow ribbed leaves grown from bulbs known as corm. The stigmas are the real saffron, which are bright orange-red grows in three threads like open end tubes from style of the flower. Of all the finest saffron comes from south eastern Spain.

Its corm grows best in rich sandy well-drained sheltered soil. Each acre sowing requires at least 80,000 to 90,000 corms which require a lot of investment.

Therefore, the government may subsidise initially and the interested grower may venture from a modest area of one kanal or so. Soil should neither be sandy or hard clay nor have high salt contents. In order to improve soil fertility, structure, water holding capacity and enhancing microbial activities well rotten farm yard manure may be added in adequate quantities. The land may be prepared so as to be free of weeds.

Although our soils are often deficient in two nutrients; nitrogen and phosphorous (N&P), yet it will be advisable to get the soil analysed for micro and macro nutrients. Usually potash is available in abundance in most of our soils. A part of nitrogen and full dose of phosphorous may be applied at sowing. First irrigation may be applied at sowing. Rest of N may be supplied in instalments during the growing period. First irrigation may be applied right away just after sowing of bulbs.

The planting may be carried out by the end of September or beginning of October. The plant is propagated either by division of bulbs or seed. However, the crop raised from seed takes about three years to bear flowers. The stem is short, measuring six inches or so in height. The bulb is wrapped in brownish thin sheaths. During growing season the main bulb develops a number of daughter corms on its sides, the young corms start bearing flowers as they mature. The corms sprout in autumn and dries after spring.

The bulbs can be dug out when in dried state or its remains alive in the soil for subsequent crop. A two to three years old bulb starts bearing flower and good crop can be obtained for five or six years from the same plantation. Since the bulbs remain dormant in the soil in off season, therefore, water may not be allowed to stand in the field, which may otherwise decompose them. The yield of dried saffron varies from four to 10 kg per hectare; which primarily depends upon the management practices followed also the climatic conditions. The price of product very much depends on the quality of the produce, which may fetch as high price as $1,000 per kg. The leading saffron exporting countries are Spain, Iran, India and Turkey.

Half hearted efforts were made for introduction into the country. If successful shall bring prosperity to the farming community, when one hectare of crop may fetch Rs300,000 to Rs500,000, which is indeed very high return compared to any conventional or non conventional crop. It is interesting to note that an agricultural scientist in Faisalabad, more than a decade ago, had successfully grown saffron in his backyard. It is firmly believed that it can be introduced in some cooler parts of Punjab, NWFP, Balochistan or Kashmir.

To start basic material be introduced from various countries of different ecological regions, which be tried in different parts of the country to determine aptness under varied agro climatic systems. The hybridisation of appropriate introductions along with application of bio technology as an additional tool possibly will lead to wide range of variation so as to select desirable changes of hybrid material best suited to our environment for higher production above and beyond improved quality of product.

Although it is like finding a needle in hay stack, yet, however, exposure to low irradiation may cause desirable changes.

Wheat price at all-time high in Punjab Monday, September 03,2007 DAWN

LAHORE, Sept 2: Wheat price is at an all-time high in Punjab, mainly due to the government's reluctance to release the commodity to flour millers.

Wheat is being traded at Rs520 per 40kg in the upper Punjab region and Rs510 in central parts of the province, with flour prices shooting to Rs290-295 per 20kg. The government, however, seems impervious to the situation.

According to market and food department sources, demand for flour is at the highest during the first week of every month when the salaried people shop for the next four weeks.

The government apparently does not realise that wheat prices are steadily going up. During the past fortnight, flour prices witnessed a rise of Rs7 per 20kg. But, the price hike has failed to spur the Punjab government into action.

An official of the food department blames someone at the helm of affairs in the Punjab government. Without naming the top official, the source said that in spite of persistent rise in the flour prices, the top person had guarded the stocks for election months.

The department wanted to release the stock in the first week of the month and then slow down progressively and repeat the strategy for the next few months.

But it has not been allowed to do so resulting in wheat prices shooting through the roof. The department planned to release wheat at Rs465 per 40 kg, which is Rs45 to Rs55 less than the prevailing market rates. It could reduce the price of 20kg bag by Rs20 straightaway, and bring it down to Rs270.

A former employee of the Food Department said the officials' unwillingness to release wheat or deliberate delay had cost the consumers Rs3 billion in the past three months.

Those who bought wheat at around Rs420, were now selling it at Rs500 per 40kg. The judiciary should take note of this Rs3 billion robbery in three months, and that too in a year when the government claimed to have reaped a bumper crop, he said.

Someone should take the government to task and ask whether it lied about the crop size or it had failed to protect people from hoarders, he added.

"Flour millers have been demanding wheat for the past many weeks because of market realities, but the government has not responded," says Khaleeq Arshad, former office-bearer of the Pakistan Flour Mills' Association. He said the government should judge the market trend and stem the tide. He said the government had no sufficient wheat stock and it was trying to save whatever it had for the dry period.

"It may be true that the government does not have sufficient stocks for the season, but it's enough to keep the market under control," says Rao Akram of Akbari Mandi.

He said the government should keep supplementing wheat for a few months and then plan for import, if need be.

However, flour prices have not gone up as much as they could have as millers are getting 25 per cent of the wheat for fine flour (maida) besides flour and selling it at Rs20 per kg.

This cushion of Rs7, though compromising on the quality of the flour, had kept prices from moving further up, he said, adding that most of the 20kg bags in the market were also underweight and no-one was ready to check them.

According to Mr Akram, both these factors were keeping the prices of flour slightly under control and providing political cover to the government.

If the city district government started checking the weight, most of the millers with names might stand exposed, he said.

NREG hits farm sector Monday, September 03,2007 The Pioneer

NEW DELHI: After one-and-a-half years of its implementation, the Union Government is now realising that the National Rural Employment Guarantee Act (NREG) is adversely affecting the agriculture sector.

Since no season is specified for providing jobs to the aspirants in rural areas, the farmers are finding it difficult to hire labourers to work in their fields in crop seasons and related activities like tilling and harvesting.

The Ministry of Rural Development, the nodal agency for the implementation of the NREG, is in a fix on how to solve this tricky situation.

The experts had raised such apprehensions when the scheme was launched, but then the officials argued that the job guarantee scheme in rural areas would give bargaining chips to the labourers.

However, the inputs coming from various States show that the rural labourers often avoid working in agriculture fields due to differences in prevalent agriculture wages and the minimum wage doled out under the NREG. In many cases, reports have also suggested that labourers avoid working in the fields out of their anger against the rural feudalism or due to caste factors.

Though Rural Development Minister Raghuvansh Prasad Singh accepted that the Ministry had received letters from States raising concerns in this regard, he termed it more of a local problem.

"We can't reach any conclusion at this stage," Singh told The Pioneer.

"We cannot deny the importance of food security. The NREG has the provision for 100 days work guarantee, only because they can work in rest of the year," he said.

Ministry sources said the problem is acute in States like Kerala and Andhra Pradesh, where both the Congress and the Left are pro-actively pursuing the people to enroll under the NREG.

Sources said on shortage of agriculture labourers, the Kerala Government has written to the MRD seeking permission to employ workers under NREG on the private agricultural fields.

Though the Ministry denied the permission, it is seeking ways on how to solve this problem.

Sources also said that a group of social activists led by director of Centre for Environment Concerns KS Gopal in Andhra Pradesh met Prime Minister Manmohan Singh and sought his intervention. On the PM's direction, Gopal presented the case before the Rural Development Minister and Minister of State for Commerce Jairam Ramesh.

Ramesh had worked closely with Sonia Gandhi-led National Advisory Council that was instrumental in drafting the NREG.

Absolving the NREG for non-availability of agricultural labourers, Gopal said lack of infrastructure in agriculture was driving the labourers away towards non-agricultural jobs. He said that the NREG should be used to create agricultural infrastructure in the main.

Guava grower commits suicide Monday, September 03,2007 NEW AGE

BARISAL: A guava grower allegedly committed suicide after failing to repay lease money to the owner of guava orchard at village Brammonkati in Jhalakati Friday afternoon.

The deceased was identified as Khirod Chandra, 60, of Madras village of the district.

Family members said Khirod took lease of a guava orchard at Tk 1.40 lakh from one Milon Bepari of Brammon- kati and paid Tk 50,000 in two installments in advance.

Khirod failed to repay the rest Tk 90,000 as price of guava drastically has fallen to Tk 2-5 per kilogram at the local whole sale markets while production cost was above Tk 8-10 per kilogram, they said.

On Friday afternoon, the orchard owner Milon and his associates assaulted Khirod and asked him to go with them to local police station for breaching of contract.

Khirod then begging time for changing dress went to the guava orchard and killed himself by hanging from a guava tree.

Seeing Khirod's unusual delay, Milon and his associates looked for him in the garden and found the body hanging and fled the spot.

On information, the police recovered the body and sent it to Jhalakathi General Hospital morgue for a post-mortem examination.

An unnatural death case was filed in this connection.

Plans to slash fertilizer subsidy Monday, September 03,2007 Daily Mirror

COLOMBO: The government is attempting to slash the fertilizer subsidy given to farmers, in the budget to be presented to Parliament in November, the All Ceylon Farmers' Federation said Sunday.

The Federation said the government had a meeting with farmer representatives and tried to get their consent for a reduction of the subsidy on grounds that the country was confronting a severe financial crisis. However, most farmers who participated in the meeting have objected to this proposal.

Asked to comment on the move, Federation's President and JVP MP, S. K. Subasinghe said the government had planned yet another meeting at Temple Trees with farmers.

"The government is planning a ploy to get farmers' approval for a cut on the fertilizer subsidy. Currently, a bag of 50-kilo fertilizer is sold at Rs. 350. It would be increased up to Rs. 700-800 if this decision is taken," he said.

Subasinghe requested farmers not to fall into the government's trap by giving their consent for whatever reason. The JVP MP also charged that there is a monopoly of a few mill owners in the Polonnaruwa district when purchasing paddy, and prices are determined according to their whims and fancies as a result.

He alleged that a leading mill owner who is also the brother of a senior government Minister had requested other paddy purchasers in the area at a recent meeting to control the paddy price not allowing it to rise above around Rs. 16 per kilo during this Yala season.

After the meeting, leaflets had also been distributed among farmers commending the monopoly in the paddy marketing system.

"Now, 10 percent of paddy has been harvested in Polonnaruwa, and 50 percent in Ampara. We could experience the results of this ploy today because Nadu variety paddy is mostly sold at Rs. 16 or Rs. 16.50 today," he said.

Afghan VP calls for spraying of poppies Monday, September 03,2007 CBS NEWS

KABUL: An Afghan vice president has called for aerial spraying to destroy opium poppies after the cultivation of the illicit crop reached a record high this year, accounting for over 90 percent of global supply, according to a report Sunday. Ahmad Zia Massoud, one of Afghanistan's vice presidents, said the international community's counternarcotics policy has failed in southern Afghanistan, where most of this year's crop was grown.

Writing in a commentary in Britain's Sunday Telegraph newspaper, Massoud said poppies have spread like "cancer" in Helmand province, where British forces are based.

"I have no doubt that the efforts of Britain and the international community in fighting the opium trade in Afghanistan are well-intentioned, and we are grateful for their support," he wrote.

"But it is now clear that your policy in the south of our country has completely failed."

Last week, the U.N. announced that the area of land used to cultivate opium had increased by 17 percent this year, with more than half of it in Helmand, a Taliban stronghold.

The report forecast that Afghanistan would produce 9,000 tons of opium this year - about 93 percent of global supply. That is up 34 percent from 2006, and is enough to make more than 880 tons of heroin.

The surge in production has stepped up pressure on President Hamid Karzai's government to consider new ways of to curb it - including aerial spraying, which it has previously opposed, saying that tactic would harm legitimate crops and water supplies, thus increasing rural support for the Taliban militia.

Massoud said the booming opium trade is closely linked to insecurity that prevails in the south, where Taliban are waging a bloody campaign against foreign and Afghan security forces.

He also said those growing the lucrative crop are not being punished.

"The time has come for us to adopt a more forceful approach. We must switch from ground-based eradication to aerial spraying," Massoud said.

He said that spraying is "safe," and that "farmers will no longer be able to bribe officials to protect their crop."

"The opium directly supports those who are killing Afghan and international troops," Massoud said. "Failure to achieve a substantial reduction in the opium crop will be equivalent to supporting the Taliban."

It was not immediately clear whether Massoud's comment reflected a change in government policy. Afghan and British counternarcotics officials were not available for comment Sunday.

© MMVII The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.

MoU inked for grain, fertiliser terminal Tuesday, September 04,2007 DAILY TIMES

ISLAMABAD: A Memorandum of Understanding (MoU) was signed here on Monday between Port Qasim Authority (PQA) and a consortium of Fauji Foundation, Akbar Group and Portia Management Services, UK for the construction of Pakistan's first dedicated modern grain and fertiliser terminal at Port Qasim.

At the signing ceremony, witnessed by the Prime Minister Shaukat Aziz, it was said that the terminal would be built on build-operate-transfer basis and all its assets would be transferred to the PQA on the completion of 30-year agreement period.

The terminal having an annual handling capacity of four million tonnes will be built at a cost of $100 million. During the 30-year period PQA will earn an estimated amount of $123 million.

Secretary Ports and Shipping informed the prime minister that it is a green field project and is essentially of national importance, involving neither funding by the government nor a throughput guarantee. Federal Minister for Ports and Shipping, Mr Babar Khan Ghauri, Chairman PQA and senior officials also attended the meeting.

Prime Minister Shaukat Aziz said that the government has undertaken a broad-based reform agenda to create a conducive business environment in the country and is encouraging the country's private sector to take its full advantage.

The prime minister said that foreign investment worth $8.4 billion during the last year testifies the confidence, which the international investors have reposed in the policies of the current government. The prime minister said that the fruits of economic growth are reaching all segments of society and all regions of the country. The unemployment rate has come down and more than 5 million new jobs have been added during the last five years, he said.

The prime minister appreciated the fact that the terminal is strictly a private sector project and said that Pakistan's private entrepreneurs should work in tandem with the government in all fields particularly in infrastructure development. The PM said that with the addition of a state-of-the-art grain and fertiliser terminal would reduce freight charges while facilitating the storage, export and import of grain. He said that the government is building industrial zones, cold storages and warehouses alongside spreading the network of roads to expedite industrialisation.

Chairman PQA apprised the prime minister that during last five years nine private sector projects, with a total invested amount of over $1.3 billion, have either been completed or are at various stages of implementation at PQA. While in comparison, he said, during preceding 24 years only three such projects were undertaken. The prime minister said that these projects would make the port more efficient and increase its revenue. He said improving the facilities at ports are part of the National Trade Corridor Improvement Programme being actively pursued by the government.

Wheat flour prices rise Tuesday, September 04,2007 DAILY TIMES

KARACHI: The wheat flour prices increased on account of a surge in wheat prices in the open market while the Sindh and Punjab food departments are yet to start releasing wheat quota to functioning flourmills, the Pakistan Flour Mills Association (PFMA) Sindh circle said on Monday.

PFMA Sindh circle Chairman, Ansar Jawed said due to diminishing wheat stocks in Punjab and Sindh, the price of 100 kilogramme wheat bag increased Rs 35 to Rs 1,350 per 100 kilogramme in the open market. He said the price of 80 kilogramme bag of wheat flour is now available at Rs 1,260 in the market as the flourmills compelled to readjust their ex-factory prices on the back of increased wheat price.

"Due to snags in releasing wheat quota to flourmills by the Sindh and Punjab food departments, the millers purchased wheat from the open market on higher prices," Mr Jawed said. The food departments of Sindh and Punjab had to start releasing wheat quota to the flourmills in their respective provinces from September 1-7, 2007 after a lapse of almost three months. PFMA Sindh circle chairman said a meeting of the senior members of PFMA with the Chief Minister Sindh Dr Arbab Ghulam Rahim was scheduled today (Tuesday) to discuss the issue price on wheat and releasing of quota to the flourmills. Mr Jawed said, "Ministry of Food, Agriculture and Livestock (MINFAL) has already approved wheat issue price at Rs 470 per 40 kilogramme for Sindh and Punjab provinces which is around Rs 1,170 per 100 kilogramme as compared with last year's issue price of Rs 1,126 per 100 kilogramme." The reason for the delay in releasing the wheat quota and announcing the issue price by the Sindh food department is on account of fewer wheat stocks in the government warehouses and slow pace of procurement process."

He said currently the millers were releasing wheat flour into the retail market at Rs 16.00 to Rs 16.50 per kilogramme and after the announcement of issue price, the retail price of wheat flour would be readjusted, which is expected to be around Rs 17 per kilogramme to Rs 18 per kilogramme. He said a meeting of PFMA Sindh and Punjab circles would be held within a couple of days to discuss the definition of sick mills, non functional units and other related issues and duty on export of flour via land route by the government. He said millers have already bared losses of millions of rupees after the ban, as they had to face cancellation of agreements with the buyers in Dubai while a lot of money went to waste, which had been spent on sample packages and bags.

Free vegetable seeds for farmers Tuesday, September 04,2007  NEW AGE

DHAKA: The Department of Agricultural Extension will distribute about 3 tonnes of seeds of different vegetables to 15,500 flood-affected small and marginal farmers in 39 districts of the country.

These seeds have been donated by the Supreme Seed Company, Bangladesh Seed Grower and the Dealer and Merchants Association for the rehabilitation of the stricken farmers and resuscitation of the agricultural sector after the prolonged flood.

DAE sources said that the two organisations mentioned above separately donated some 2,860 kilograms of different vegetable seeds which will be distributed to the farmers free of cost. The association donated some 2,200 kgs of seed in 10,000 packets, they said.

Each packet of seed contains 220 grams of different vegetables seeds, comprising of 50 gms of red amaranth, 100 gms of palang shak, 50 gms of radish, 10 gms of bottle gourd and 10 gms of sweet gourd.

The amount of seeds is enough to cover nearly 2,500 acres of land, said FR Malik, the president of the association.

The association also handed over 10,000 kgs of hybrid boro seeds, worth Tk 20 lakh, to the agriculture advisor, CS Karim, recently for distribution to the farmers before the next boro season that begins in November, said Malik.

The Supreme Seed Company has donated 660 kgs of vegetable seeds worth Tk 5.50 lakh in 120-gram packets, each containing seeds of the hybrid radish called Everest, red amaranth, yard-long bean and okra, for distribution to 5,500 small farmers in nine flood-hit districts.

Five-hundred farmers in each district - Rajbari, Faridpur, Lalmonirhat, Gaibandha, Comilla, Jamalpur and Feni - will be given the packets, and also some 2,000 farmers in Tangail and Sirajganj.

The main objective of seed distribution by the private sector is to support the flood-affected small farmers in addition to the government's efforts, said Mohammad Ibrahim Khalil, adviser of the Supreme Seed Company.

Agriculture adviser CS Karim formally inaugurated the seed distribution programme on August 29 by distributing vegetable seeds to the small farmers in Rajbari and Faridpur districts.

The deputy director of the DAE, Md Shamsul Islam Sarker, said, ‘The distribution of free seed will help supplement vegetable production in the flood-affected areas.'

Wheat deal is robbery, say CPM and BJP Thursday, September 06,2007 Asian Age

NEW DELHI: The government's decision to import wheat despite the exorbitant cost has resulted in a political uproar with the BJP and CPI(M) calling the deal "daylight robbery".

The government had decided to cancel the tender invitations for purchase of wheat at $263 per tonne in May owing to International Grain Council (IGC) projections that wheat prices were set to fall further and production in major wheat-producing countries like the US, Australia and Ukraine was on the higher side of estimates.

According to Union agriculture ministry sources, after the cancellation of tenders, there was a steep escalation of wheat prices in the international market, contrary to the government's expectations. In order to augment the buffer stocks, the government was forced to go in for wheat imports despite the high cost.

Orders have been placed by the government for the import of 5.11 lakh tonnes of wheat during September and October this year. Earlier, two tenders were invited for purchase of one million tonnes each of wheat in April and June. This despite representations from farmers' organisations and a few public figures requesting the government to reconsider its decision to import wheat during the current year. However, food and consumer affairs department officials said there will be imports this year at least. Suppliers of this quantum of wheat will be the Switzerland-based Cargill International, Canada-based TOEPFER International and the Russia-based RIAS Trading company. The weighted average price of n Turn to Page 2

the imported wheat will be $326 per tonne. However, contrary to popular belief, no wheat was imported from the US on government account during 2004-05, 2005-06 and 2006-07.

Significantly, neither is there a decline in wheat production nor domestic scarcity, as agreed by the government. Wheat production stood at 69.35 million tonnes in 2005-06 and as per the fourth advance estimates, released on July 19, wheat production will be a record 74.89 million tonnes. The figure has crossed this mark only once, in 1999-2000, when production was 76.39 million tonnes.

The main reason given by the government for wheat imports has been that it was needed to meet the requirements of the public distribution system (PDS) and to maintain sufficient buffer stocks for food security. The imports were apparently to offset the procurement shortfall. By the government's own admission, against the estimated requirement of 150 lakh tonnes of wheat required for TPDS and other welfare schemes during the current financial year, government agencies like Food Corporation of India (FCI) have procured only 111 lakh tonnes. The procurement was less than the estimated requirement due to low market arrivals and high private participation in procurement.

Meanwhile, with the nuclear issue still being hot, the CPI(M) on Wednesday opened another front, attacking the decision to import nearly eight lakh tonnes of wheat at Rs 1,600 per quintal. The party demanded an end to the policy of wheat imports and asked the government to unearth the wheat stock cornered by traders.

The government's move will only benefit MNCs in European countries, which have got a lucrative price, it said. The party contended that it was only due to a low minimum support price of Rs 850 per quintal of wheat that the FCI failed to procure a sufficient quantity of wheat while private traders could purchase huge quantities for hoarding, creating an artificial scarcity. Instead of taking stringent action against unscrupulous traders, the government has resorted to imports, the CPI(M) alleged.

Jute growers not getting fair price Thursday, September 06,2007 NEW AGE

NILPHAMARI: JUTE growers in eight northern districts are not getting expected price from the sale of their produce. The growers in Madaripur also complained of not getting fair price. The growers said bumper production of jute might keep the price at a level less than expected.

Growers in eight northern districts have started harvesting jute. But they said the price of their produce this season was less than that of the previous year though the quality of jute this year was good as there was adequate water in canals, ponds and rivers to rot and wash raw jute.

Market sources said a mound (one maund is equal to 37.3242kg) of local variety of jute is being sold in the market at Tk 400 to 450 and that of tosa variety at a rate of Tk 500 to 600. Very high quality of jute (golden coloured fibre) which is rare in the region is sold even at a rate of Tk 700 in some areas.

Last year the farmers got up to Tk 700 to Tk 850 for a maund of jute according to the class.

Abdul Hye, a jute farmer of village Salongram under Jaldhaka upazila in Nilphamari, said he had cultivated tosa variety of jute on two acres of land and got 28 maund of raw jute. He sold that amount of jute at Tk 15,400 at a rate of Tk 550 per maund.

He also said he had sold his all jute sticks at Tk 8,000 this year. Thus he earned Tk 5,400 as his total expenditure was Tk 18,000. But last year he could make more profit as he could sell each maund of tosa jute at Tk 800 to 850.

According to the regional office of the Department of Agricultural Extension, in this year jute was cultivated on 70,000 hectares of land in Rangpur, Dinajpur, Gaibandha, Kurigram, Lalmonirhat, Panchagarh, Thakurgaon and Nilphamari. Of them tosa variety of jute covered 80 per cent and local variety covered the rest.

The production target was set at 5,25,000 bales in the districts. The regional DAE office expects to achieve the target after completion of harvesting.

Last year jute was cultivated on 60,000 hectares of land in the region. Farmers said that they had cultivated additional 10,000 hectares of land this year as they got good price of jute last year.

Abul Kashem, additional director of Rangpur regional jute office, said eight jute mills had sought permission so far to open 10 jute purchasing centres in five districts. Those mills are Amin Jute Mills, Crescent Jute Mills, Delta Jute Mills, Latif Bawani Jute Mills, Platinum Jute Mills, UMC Jute Mills, Bangladesh Jute Mills and Aleem Jute Mills. Of them, Latif Bawani Jute Mills and UMC Jute Mills are willing to open two jute purchasing centre each and the rest six mills would open one centre each.

Sawkat Ali, additional director of Dinajpur regional jute office, said three jute mills namely Amin Jute Mills, Karim Jute Mills and Eastern Jute Mills had sought permission to open three purchase centres in two districts of greater Dinajpur out of three.

Abul Kashem expressed his optimism as saying that the jute price might rise further as soon as all the mills start purchasing jute.

Jute growers in Madaripur are facing problems and incurring financial loss due to low price of jute in the markets.

One maund of jute is now being sold at Tk 400 to 500 in the markets which is much lower than the cost of production, according to the growers. They said they had a cost of about Tk 800 to produce one maund of jute.

Jute growers Saraf Kazi of Lakshiganj, Sikandar Ali of Mostafapur and Nuru Kazi of Charmaguria described New Age of their frustration about the present condition.

They said some organised middlemen were manipulating the market prices for their own interest and they (growers) became hostage to the organised party. The government should take steps to ease woe of the growers, said a grower. The government should buy jute from the growers to ensure fair price for their produce, said another grower.

Sources in the Department of Agriculture Extension said jute was cultivated on 22,807 hectares of land in the district. The growers had to suffer in processing jute for inadequate rain in the pick season. Besides, the recent flood has damaged a huge quantity of jute.

When contacted, DAE officials said they would require one more week to estimate the loss of jute caused by the floodwater.

FTA to increase Pak-China trade Friday, September 07,2007 DAILY TIMES

ISLAMABAD: The Free Trade Agreement (FTA) between Pakistan and China will help in increasing trade volume to the optimum level between the two countries.

Zhang Ye, Party Chairman and Vice Director General, Department of Foreign Trade and Economic Cooperation of Xinjiang province expressed these views while welcoming the business delegation of Islamabad Chamber of Commerce & Industry (ICCI) on Thursday, said a press release issued here.

He said that the Pakistani business delegation could explore enormous opportunities of trade in Xinxiang and appreciated their interest for visiting the Urumqi trade fair, which provided an excellent window of trade in many areas with Chinese entrepreneurs. China had a great interest for trade and investment in Pakistan and highlighted the importance of various projects, which were underway with collaboration of China in Pakistan. The chairman said that Pakistan and China friendship was deeper than oceans.

Zhang Ye said that both the countries should closely collaborate in many areas, which would further deepen their historic friendship. Discussing the development in Xinjiang province, he said that it had a great potential and Pakistan could further trade in the areas of common interest.

Nasir Khan, President of ICCI thanked Mr Zhang Ye for meeting the business delegation. He said that delegation had a great experience visiting the Urumqi fair, and their meetings with several Chinese entrepreneurs.

Farmer suicides the symptom: Sainath Friday, September 07,2007 The Hindu

NEW DELHI: The crisis in the farm sector is a national one and not restricted to some States. The suicides are just the symptom not the disease, said Magsaysay awardee and Rural Affairs Editor of The Hindu P. Sainath while deliverin g a lecture on ‘Farm Crisis; Why have over one lakh farmers killed themselves in the last decade?' in Parliament House.

Reeling out chilling statistics which revealed how India remained a land of poverty amidst plenty, Mr. Sainath said India had the fourth highest number of dollar-billionaires in the world; behind only the United States, Germany and Russia. "But, we are 126th in human development. This means that it is better to be a poor person in Botswana or the occupied territories of Palestine, both of which show superior human development indicators than India."

Though India was an emerging tiger economy, life expectancy here was lower than in Bolivia - the poorest country of Latin America - Kazakhstan and Mongolia. India may have 100,000 dollar millionaires but 800 million in this country existed on less than Rs. 20 a day as per government data, he said, adding that "there is no such thing as Indian reality, there are Indian realities."

Another contrast he brought out pertained to foodgrains intake. The last 15 years - which saw unprecedented prosperity among the rich - witnessed a decline in foodgrains intake. Quoting from the atlas of food security of the Food and Agriculture Organisation, he said in 1997-2002, India added more newly hungry millions than the rest of the world taken together.

"Hunger grew at a time when it declined in Ethiopia. A new restaurant opens every day in some city of this country but the average rural family is consuming 100 kg less than it did 10-15 years ago because that is the food availability situation."

Mr. Sainath regretted the slow pace of tenancy reforms in the country. According to him, land reforms had been carried out properly by only a handful of States.

"It seems appalling to me that we can clear an SEZ in six months but we cannot do land reforms in 60 years across this country!"

He drew the attention of Parliamentarians to the growing expenditure on health as India now had the sixth most privatised health system in the world.

Another alarming phenomenon, he said, was the closure of as many as 3,500 banks in the rural areas - without which there would have been no Green Revolution in the first place - between 1993 and 2002. Ironically enough, while banks have systematically withdrawn from credit for the rural areas, they are increasingly wooing the upper middle classes.

Afghanistan to produce 8000 ton opium Friday, September 07,2007 AFGHAN NEWS

KABUL: According to the United Nations Office on Drugs and Crime, Afghanistan will produce more than eight-thousand tons of opium this year, a one-third increase over 2006. "When there is violence, guerrillas, insurgency -- all that creates a climate of lawlessness -- the rule of law breaks down", said Office on Drugs and Crime director Antonio Maria Costa. In the case of Afghanistan, he said, "opium cultivation tends to flourish."

Over one-hundred-ninety thousand hectares have been turned to opium production, mostly in southern and eastern Afghanistan and particularly in Helmand province, where Taleban insurgents operate. But the U-N report also points out that twice as many provinces in northern and central Afghanistan are free of opium poppy cultivation. U.S. State Department deputy spokesman Tom Casey commented:

"What we've seen is a real two-tiered kind of system, when it comes to poppy cultivation. In those places where there is security that's been provided and where there is development assistance going in a meaningful way, you have decreased poppy cultivation. And in fact, it is twice the number of provinces, from six last year to thirteen this year in 2007, out of thirty-four provinces total that are poppy free. So there is real positive change occurring."

Mr. Casey said there is a link between insecurity and the increase in opium poppy production:

"The numbers are going up exactly in those places where you would expect them to. They are the places where there is greatest insecurity, where there is greatest activity on the part of the Taleban and other violent elements and where the government [of Afghanistan] has not yet been able to deal with those very basic security problems, and, therefore, has also limited our ability to provide for economic development, including alternative development programs for the people in those areas."

Afghanistan's President Hamid Karzai said his country has a problem with illegal drugs:

"Afghanistan is committed to fighting it because this evil is first hurting us, and then youth in the rest of the world. We are committed. It will take time."

U.S. Ambassador to Afghanistan Bill Wood says "illicit narcotics are a cancer" that must be cut out. The U.S., he says, is "committed to a much more robust effort this year" to help Afghanistan combat drug traffickers.