India 2nd largest cotton producer in '08 Monday, October 01,2007 HINDU [1]

MUMBAI: For the second consecutive year, India is expected to remain second-largest cotton producer in the world with 51,17,000 tonnes, followed by China who is expected to produce 70,76,000 tonnes in FY08. India has emerged as the world's second largest cotton producer in FY07, edging past the US, which held the second rank until recently, according to the industry estimates.

Asia dominates the global cotton sector in terms of both output and use. China, India and Pakistan account for half of the world's cotton production and two-thirds of world cotton consumption. Pakistan is the world's fourth largest producer and third largest consumer.

The US Department of Agriculture (USDA) recently estimated that in FY08, Indian cotton output is estimated at 51,17,000 million tonnes as against 47,46,000 tonnes in the previous year.

The US is expected to produce 38,78,000 tonnes, down from previous year's 47,00,000 tonnes. While the US saw some cotton areas being switched to grains as the latter's price hit multi-year highs in the commodities in the last two years.

Pakistan and Brazil are expected to remain on fourth and fifth position with cotton production of 23,95,000 tonnes and 14,81,000 tonnes respectively in FY08, USDA said.

Pakistan' rice exports to Turkey go up Sunday, September 30,2007 DAWN [2]

ISLAMABAD: Pakistan will increase export of rice to Turkey in the wake of dispute settlement body of WTO decision asking Ankara to remove burdensome procedures and implicit barrier to market access. This decision would really have a positive impact on Pakistan's exports because it would remove burdensome procedures and barrier to market access in the Turkish market, an official in the commerce ministry told Dawn on Saturday.

The US government has taken action against Turkey at the World Trade Organisation in a row over Turkish restrictions on rice imports.

This complaint was supported by Argentina, Australia, China, Egypt, European Communities, Korea, Pakistan and Thailand as third parties.

He said the decision would alert other importers as well who have similar implicit barriers.

Currently, Pakistan has very negligible export of rice to Turkey due to the quantitative restrictions and high tariff walls on the agriculture produce, including all varieties of rice to protect their local farmers.

According to the DSB decision, Turkish decision, from September 2003 and for different periods of time, to deny, or fail to grant, certificates of control to import rice outside of the tariff rate quota, constitute a quantitative import restriction, as well as a practice of discretionary import licensing.

Accordingly, it is a measure of the kind, which has been required to be converted into ordinary customs duties and is therefore inconsistent with Article 4.2 of the Agreement on Agriculture.

It was recommended that the Turkey should bring the inconsistent measures as listed above in conformity with its obligations under the WTO agreements.

This means that in compliance of this decision, Turkey will have to open up its market for import of rice from all rice producing countries.

JICA to back jute export projects Monday, October 01,2007 NEW AGE [3]

DHAKA: The government, in collaboration with Japan International Cooperation Agency, will implement two pilot projects for diversification of major export items.

Jute goods and software have been chosen as the sample products for the projects, said officials at the Export Promotion Bureau.

A JICA study team on Sunday discussed the details of the projects with export promotion officials and private sector representatives at the EPB office.

Mustafa Mohiuddin, joint secretary of the ministry of commerce, Mitsuaki Suzuki, deputy representative of the JICA in Bangladesh spoke, among others.

The Japanese study team highlighted the potentials of jute goods and software in export market.

EPB officials said JICA will help some selected Bangladeshi exporters gain foothold in the coveted Japanese market. The agency offered to support entrepreneurs in developing technical capacities and marketing skills.

Earlier, the JICA trade experts thoroughly studied the prospects of Bangladesh's jute and software sectors, and found that manufacturers could diversify these products for having greater sales in overseas markets, including Japan.

The Japanese experts were also convinced of Bangladesh's competitive strengths in the jute sector for high-quality natural fibre, cheaper and skilled workforce, research base and easier access to the international market.

Pest attack affects aman farming Monday, October 01,2007 NEW AGE [4]

CHAPAINAWABGANJ: FARMERS of Chapainawabganj may not achieve the target of aman production this season due to pest attack.

The farmers said insects known as ‘mazra poka' had attacked standing aman plants on vast tract of land in the district headquarters, Nachole, Gomastapur and Bholahat upazilas of the district since the last two weeks.

They said they were not getting any result after using pesticides on their pest-invaded fields. They alleged that the officials of local Department of Agriculture Extension were not taking any initiative to check the pest attack.

Mofizuddin, cultivator of village Gushira in the district headquarters, said he had cultivated aman on seven bighas (one bigha is equal to 0.3306 acre) of land but he was apprehending huge loss due to widespread pest attack on his land.

Deputy director of the local DAE Asim Kumar Malakar, confirming the pest attack, said incessant rain for last few days were the reason behind the attack.

He said the situation would be normal soon with the stoppage of rain and scorching heat of the sun.

Farmers of the district have cultivated aman on 54,810 hectares of land exceeding the target 53,050 hectares, DAE officials said.

SL falls behind in agri biz Monday, October 01,2007 Daily Mirror [5]

COLOMBO: Diversification of agricultural crop is a clear necessity of the present day in a bid to be on par with Sri Lanka's regional counterparts, a top US official stated recently. Chief Guest USAID Mission Director Rebecca Cohn pointed out that successive governments have only concentrated on paddy cultivation and as such it was high time for the government to concentrate on other agriculture products.

"Agriculture in Sri Lanka has not kept pace with the rest of the region. Recent studies have shown that small farmers do not have sufficient returns from their output. This is not surprising considering that in spite of 34% of the Sri Lankan population being employed in agriculture only 17% of the GDP comes from it. FAO statistics show that agriculture produce has remained the same in Sri Lanka for the past 15 years," she said.

This was stated that the National Agriculture Council (NAC) AGM during which it urged to participate more in the agriculture policy formulating process with the government to enable for private sector participation that would give bigger returns to rural farmers and result in crop diversification.

She insisted that reduction of poverty and economic development across the board would depend on how well Sri Lankans can adjust to the changing market and make use of new technologies to link rural farmers with the larger national economy. Stressing that fiscal subsidies in fertilizer have so far only managed to place more burdens on the Lankan economy Ms. Cohn advocated more involvement of the private sector in agriculture.

"The NAC has a duty to lobby with the government to create a more business enabling environment that is driven by the private sector. USAID is keenly interested in working in conflict areas.

The East has opened up as a good opportunity for fresh investments and we should work on developing it further. The Western Province continues to lead the development scales with the Eastern Province lagging behind at 4.7% and the North is probably less," she said.

Detailing the NAC plan for the next two years newly elected Chairman Sarath de Silva admitted that the escalating costs hamper farmers and have driven away new investors. However, he pledged to continue networking rural farmers and developing new markets such as India. de Silva also called for the improvement of poultry farming and dairy.

Govt clears Rs 2/kg rice scheme Tuesday, October 02,2007 HINDU [6]

HYDERABAD: As expected, the State Cabinet on Monday cleared Chief Minister Y. S. Rajasekhara Reddy's proposal to introduce the subsidised rice scheme in its original form, as implemented by the late Telugu Desam founder-leader N. T. Rama Rao.

Meeting after a month's gap, the Cabinet adopted a unanimous resolution asking the Finance and Civil Supplies departments to work out a strategy to go ahead with the supply of rice at Rs. 2 a kg to 1.82 crore white card-holders, with an extra commitment of Rs. 1,012 crore.

Information Minister A. Ramanarayan Reddy told reporters later that the modalities of the scheme and the date of grounding would be announced shortly.

The Cabinet also cleared a plan to modernise and strengthen the State police force to tackle terrorism, extremism, factionalism and law and order problem, by recruiting 37,880 men, purchasing modern weaponry and floating OCTOPUS, all at a cost of Rs. 882 crore. The new recruits would strengthen the 16 police wings, besides taking the total force to an all-time high of 1,58,880. As part of the plan, all Ministers/VIPs would get bullet-proof Scorpios.

Green signal

The meeting gave green signal to improve livestock and dairying with a budget of Rs. 500 crore in 2007-08. It has decided to open six residential schools for tribal girls in Agency areas and five degree colleges for girls/boys.

"Bhoorakshana" wings are to be set up in Kakinda, Tirupati and Hyderabad with appointment of deputy collectors, tahsildars, surveyors and revenue inspectors to protect temple lands.

The Minister said the Cabinet sanctioned Rs. 100 crore to AP Genco towards its equity participation in the 4,000-MW thermal power project planned at Krishnapatnam.

It cleared Government guarantee to nine cooperative sugar factories to enable them to pay arrears of Rs. 62 crore to cane-growers through the A.P. Cooperative Bank.

Dumsi farmers run cooperative Tuesday, October 02,2007GORKHAPATRA [7]

DUMSI: Dilliram Sapkota of Dumsi in Byas Municipality earns more than Rs. 30,000 each month from selling milk. He has three cows and one buffalo, which have been his regular income source. He is also the chairman of 'Dumsi Milk Producing Cooperative Limited?, a farmer run cooperative, which collects milk from farmers and sends it to the market. There are a number of Sapkotas who have made animal husbandry, a major profession.

The cooperative has been running different programmes including providing loan to farmers to buy buffalo and cow, collecting saving of farmers and providing them interest, buying milk from farmers and selling it, providing medicinal arrangements for animal husbandry, forage seed distribution and forage development and arranging livestock insurance. From the programmes more than 200 farmers are being benefited and are encouraged to take up animal husbandry.

The farmers run cooperative has been a boon for the poor villagers for their income generation. The farmers, who are members of the cooperative, have been rearing buffaloes and cows professionally.

?The cooperative has been much supportive for farmers like us as it buys our milk, provides loan and veterinary service and provides seeds for forage production, arranges insurance for our livestock and provides interest for our savings,? said Dayaram Sharma, a farmer of Dumsi.

?We even invest our money, collected from saving, in cultural programmes like marriage, worshiping in the villages and in other social works,? chairman Sapkota said. The cooperative has been an important element to make us organised, to send our children to good schools and colleges, to manage our daily expenses and to uplift our living standard,? he said.

Farmers of Nagdanda of Dhikurpokhari VDC of Kaski have been running similar types of Dairy Cooperative. It also collects milk from farmers and prepares milk products for selling.

?We used to sell our milk in limited quantity by walking one hour before the cooperative came into existence but now the cooperative buys our milk,? said Punya Prasad Paudel, a member of the cooperative.

The cooperative has more than 400 farmer members, but all of them are not being able to sell their milk because of milk holiday in the absence of adequate market, said Tarapati Dahal, a farmer of the VDC.

Krishna Prasad Sharma, director of Regional Animal Service Directorate, Pokhara said, ?Still, the farmers are not being able to develop their animal husbandry in a professional manner with specialised farming.?

?We want to be more professional in animal husbandry, but we need government support for the same,? cooperative member Paudel said.

Both the cooperatives have been supported by 'Third Livestock Development Project? with the assistance of Asian Development Bank (ADB). The project has covered 27 districts from western and central regions ? 19 districts for intensive livestock program. The project directly benefited 56,455 farmers? families through livestock productivity improvement, according to ADB.

The project supports training on buffalo husbandry, buffalo transportation, promoting market, parasite control and vaccination, provides forage seed, hybrid buffalo for breeding purpose and veterinary assistance for the cooperative of Dumsi.

The cooperative of Dhikur Pokhari has been benefiting from a deep freeze and a pasteuriser, Rs. 10 million for cold storage construction and various technical and institutional training from the project.

The income generating programmes at the farmers level, under the project has increased school enrollment of children, reduced the workload of women, made the people organised, increased level of awareness and women employment and saving and credit mobilisation within the group members, said an ADB report.

But the project, which became effective with ADB loan disbursed to the government since 1997, winded up in 2005. It, however, experienced some problems in credit delivery to farmers and entrepreneurs. The conflict of the country adversely affected implementation and monitoring of field programmes in some project districts, the ADB report said.

AEZs have more export potential: Farmers Wednesday, October 03,2007 Asian Age [8]

NEW DELHI: Peeved over the government's bias towards promoting SEZ, farmer organisations have come up with an argument saying more potential for exports lies with the Agri Export Zones, the poor sibling of Special Export Zones. Bhartiya Krishak Samaj, a farmers association spearheading the cause of agriculture in the country, has released data, which shows that AEZs in fact can generate more exports than the SEZs.

The scheme for setting up AEZs was conceived in 2001 and today they are 60 in number, spread across 20 states. Despite low investments and inadequate infrastructure, AEZs have managed an export earning of over Rs 6000 crores in the last five years. Unlike SEZs, the AEZs do not enjoy any special fiscal sops and hence there is no revenue loss for the government. The government has already admitted that the revenue loss due to SEZs will be over Rs 1,00,000 crores by 2009-10.

"According to the latest data for 2006-07, the new generation of SEZs could generate only Rs 9,301 crores worth of exports. Comparatively, the 60 Agri Export Zones which do not enjoy any special fiscal sops, despite putting up a good performance, failed to top decision makers' priority list," Krishna Bir Choudhary of the Bhartiya Krishak Samaj said in a statement.

"Since the inception of AEZs along the SEZs in 2001, not much investment has flowed in. This is despite promises made to agriculturists and traders. Both Central and state governments have not been playing a pro-active role to bring in investment, let alone encouraging private sector to invest. As per initial criteria, investments by the Centre, states and the private sector has to be in the ratio of 1:1:2. Accordingly, the total investment for 60 approved Agri Export Zones was estimated at Rs 1,717.95 crores. Against this, the total flow of investment to date is only Rs 8,11.18 crores," Mr Choudhury said.

Despite low investments, AEZs could achieve about 50 per cent of the export target (Rs 11,821.47 crores) over a period of five years. The government also admitted that there is a lot of under-reporting by the state governments about the movement of produce from AEZs for exports.

The total export figure will be much more than Rs 5,185.23 crores in five years. This should be on the higher side of Rs 6,000 crores, if there was no under-reporting.

Another reason for the poor export performance is that all AEZs were not set up in 2001. Many of them were set up much later.

A majority of the exporters expressed the view that most of the investments made in AEZs came from the private sector. The investment could have been much higher had the Central and state governments developed better infrastructure, encouraged investment and put in their share of the investment. According to Union commerce ministry officials, the Agricultural Produce Export Development Authority (APEDA) had recently asked for Rs 250 crores to support AEZs under the government's scheme for Assistance to States for Infrastructural Development for Exports (ASIDE). But the ministry agreed to render only Rs 50 crores to AEZs under this "ASIDE" scheme.

Unlike the SEZs, the AEZs do not have specified physical boundary. They are confined to specific regions in states, known for growing specific crops. The AEZs are designed for bringing integrated development of larger area including boosting income prospects.

Tea Board to monitor export quality Wednesday, October 03,2007 Lanka Business [9]

COLOMBO: The Sri Lanka Tea Board plans to set up a tea testing laboratory to make sure that chemical residues and impurities do not get into exports, Tea Board chairman Lalith Hettiarachchi said.The lab will in future handle all the testing done by the Board some of which is now outsourced.

Testing tea is critical to ensure that only teas of the stipulated standard are shipped to overseas buyers and maintain the island's reputation for quality.

"We analyse and verify the quality of tea since we must maintain certain standards at the export level," Hettiarachchi said.

Some countries like Japan are insisting on very stringent quality levels, especially for chemical residues in tea.

"These standards are very important to them so we must satisfy them that we keep up to those levels," Hettiarachchi said.

"So we must satisfy ourselves that exporters are maintaining standards."

The total investment in the new lab, including buildings and sophisticated testing equipment, would come to around 200 million rupees, Hettiarachchi said.

The Tea Board now tests samples of teas before the Colombo auction, after the auction and also at the point of shipment.

But the increasing volumes of tea being auctioned and exported and the sophisticated nature of the tests mean that the board has to send samples to other labs such as the Tea Research Institute in Talawakelle in the central hills, the Industrial Technology Institute and private labs.

"Our new lab will be a fully equipped and internationally accredited lab which will be able to do all the testing of tea samples," Hettiarachchi said.

Tea Board staff are being sent to Japan for training in labs there.

Melon Time in North Wednesday, October 03,2007 AOP NEWS [10]

KABUL: "When the flowers bloom on the watermelon plants, we know it's time," said Turday, standing beside a pile of green and yellow fruit. "We move out of our regular houses into the chaila, until the picking season is over."

The "chaila", a makeshift enclosure made of branches and twigs, can be seen on most farms in the Aqcha district of Jowzjan province in northern Afghanistan.

Ethnic Turkmen make up the majority of the population here, and melon-growing is a way of life for them.

Turday, 46, comes from a long line of melon farmers, who have carefully passed down the secrets of the trade from father to son.

"I was born in the summer when my parents were busy on the farm," he said, smiling broadly. "When I opened my eyes for the first time, I saw the colours of melons and watermelons. It's in my blood."

Turday has 10 jeribs (two hectares) of land, half of which he devotes to melons. For him, the fruit is more than a business; it is a tradition, a way of life.

"I love life on the farm," he said. "When I return home after melon season is over, I feel like I'm going to prison."

In Jowzjan, Turday explained, farmland turns into small townships in the late summer, when people start moving out to harvest their melons. Some shopkeepers also migrate with the crowds, setting up temporary stalls to service the melon farmers.

Next to Turday's land is 66-year-old Hazrat Qul, who regards himself as the district's most experienced watermelon farmer.

"Melons divide into two categories - those with hard seeds and those with soft seeds. Watermelons, too, come in many different varieties. The sweetest is called ‘makayee' and has small seeds," he explained.

The soft-seeded varieties are sold locally, as they do not travel well. Some types only grow in Jowzjan, added Hazrat Qul.

"Loblayee and gorgak melons are so sweet that they aren't found anywhere else," he said proudly.

Hazrat Qul picked up a small green fruit and explained that this was a gorgak melon.

"Despite its colour and size, it is the sweetest of all the melons," he said.

Local farmers grow this variety for their own use only, and never sell them, as doing so is considered unlucky.

"If someone tries to sell a gorgak melon, his family or his farm will come to some harm," said Hazrat Qul. "Four years ago, a farmer treated this as a joke, and sold his gorgak. The next year his melons did not ripen, and he had almost no harvest. His son was bitten by a snake during irrigation, and he almost died."

According to Hazrat Qul, farmers can expect to harvest 400 to 600 melons or watermelons from a jerib of land. Melons sell for 30 to 70 afghani each, giving an income of approximately 500 US dollars from every jerib, or 2,500 dollars per hectare

No exact statistics are kept, but Shams, the head of the agriculture department in neighbouring Balkh province, said that preliminary surveys indicated that more than 100,000 jeribs of land across northern Afghanistan were planted with melons.

Deputy agriculture minister Ghulam Mustafa Jawad said Afghan melons were prized in neighbouring countries.

"We export melons daily to Pakistan, and we have very good customers there. The agriculture ministry is trying to find other markets as well," he said.

No precise export figures were available, Jawad added.

Melon season in the north runs generally from July to November, when the last of the fruit ripens.

Sales generally take place on the farms, with buyers coming out from the towns to find the best produce and prices.

Turday's melons are now ready, and three buyers from Mazar-e-Sharif are haggling over the price.

"I always buy my melons from this district," said Nawroz, a businessman. "The people here are honest, and Aqcha melons are popular throughout Afghanistan because of their sweetness."

Nawroz buys melons from farmers and sells them to retailers in Mazar-e-Sharif.

"People come from all over the place, even Kabul, to buy these melons," said Nawroz. "I buy at least 10 truckloads a week and sell them at a good profit. In my opinion, melon season is a sacred time for people in the north."

The harvest requires extra hands, and the pickers are often paid in kind.

"I pick melons on all the farms in this area," said Nooria, 43, from the Chamtal district of Balkh province. "I get five melons for my labour. That's good for me - I eat one with my family and sell the others in the market for 200 afghani."

Markets across the north buzz with activity during melon season. Kunduz province in the northeast stands out both as the largest producer and as the site of the largest melon market in the country. People come from everywhere to buy the fruit.

As the night falls on one market in Kunduz, merchants try to offload the last of their produce so that they can return to their homes.

Mohammad Bashir, 22, is sitting on his pile of melons and calling out to passers-by in a loud, singsong voice, "All of my melons are as sweet as honey. First taste them, then buy them. If they aren't delicious, I won't charge you for them."

He told IWPR that he was selling 600 melons and earning about 2,000 afghani (40 dollars) a day.

"We only have this market for four months a year," he said. "I wish it lasted all year round."

Hajji Allah Daad had just made a purchase and was tying two melons onto the back of his bike.

"I bought these for 100 afghani," he said. "That's a reasonable price. Our whole family is so used to this fruit that we eat it all summer. My sons get upset and refuse to eat if there is no melon or watermelon on the table. We have to buy melons every day."

There are melons to suit every pocket, ranging from ten to 80 afghani. "Everyone buys them. Those who can't afford the expensive ones can buy some for very low prices," said Allah Daad.

One less conventional use for melons is to prolong the high for cannabis users.

Panji Murad, 20, is the son of Turday, the melon farmer in Aqcha. Sitting in the chaila, he seems lost to the world.

"When we smoke [hashish] and eat melon, it lasts longer," he said dreamily. "During the summer, when the melons ripen, we get twice the pleasure from drugs. Melons are good for your health, and they keep the drugs from having a bad effect. So during this season I like to smoke a lot."

He laughed, and said, "We know that melons have another use besides just filling the stomach."

Melon farming is not as easy as it sounds, as the crop can be hard hit by pests.

"This year there's a sort of mosquito that is harming our melons," said Najibullah, a farmer in Balkh. "They infect the bushes when they are flowering, and later, when the fruit ripens, the seeds go black and you can't eat the melon. In many places entire farms have been devastated."

Once the flies had settled in an area, he continued, it was almost impossible to replant melons for some years.

"The government has distributed some treatments, but it hasn't been enough," complained Najibullah.

The agriculture ministry has taken steps to deal with the infestation.

"We distributed soil treatments to all areas where melons are grown, and the problem has decreased," said deputy minister Jawad. "But we have not been able to control it 100 per cent. It takes time to wipe out the flies. You can't do it solely with chemicals; there are other ways, and farmers need to learn them."

These methods included ploughing up infected land, and leaving fields fallow after a melon crop, he explained.

"We have projects for next year, and we will work with all the farmers," said the deputy minister. "That way, we'll be able to wipe out the flies."

Shams, the head of agriculture in Balkh province, claimed that efforts against the pest had been largely successful.

"Last year the farmers suffered damage to 70 per cent of their crop," he said. "This year, it was down to 15 or 20 per cent. Fortunately, our farmers have enough experience to know how to deal with plagues."

Sayed Yaqub Ibrahimi is an IWPR staff reporter in Mazar-e-Sharif.

Another bumper opium year looms Wednesday, October 03,2007 AOP NEWS [11]

KABUL: Rahim Gul is working on his land, a vast tract in the Shawol area of Nad Ali, one of Helmand's main centres of poppy cultivation. He leans on his rake and sighs.

"I get very tired during the poppy planting season," he said. "It takes so much work. Growing poppy is like trying to cure a madman."

Nad Ali is a mostly agricultural district, a large canal supplying its farmers with water. The main crop is poppy, which has made Helmand province into the world's main supplier of opium and its derivative heroin. The United Nations Office on Drugs and Crime, UNDC, estimates that close to half of the heroin on the streets of Europe originates in this one province of Afghanistan.

In 2007, Helmand harvested its largest crop to date, the estimated 4,400 tons representing a 57 per cent increase on the previous year, according to the UNODC's "Afghanistan Opium Survey 2007, issued in August. That figure far outstripped the second-biggest producer, Nangarhar, which rocketed to just over 1,000 tons.

If Nad Ali is any reflection of the province as a whole, 2008 could be an even bigger year for Helmand.

The much-vaunted eradication campaign appears to have failed to stem Helmant's relentless rise as the leading producer. The UNODC report said that the 103,000 hectares under poppy in 2007 represented a 48 per cent increase on last year's area, but only 4,000 hectares of crops were destroyed, some 20 per cent less than in 2006. Counter-narcotics officials admit privately that the actual area eradicated may well have been even smaller than that.

The United States and British governments have devoted significant resources to alternative livelihood programmes, but Rahim Gul says Helmand's cautious farmers are reluctant to believe in ephemeral promises.

"To be honest, this alternative livelihood thing is not really a certainty for us," he explained. "It will never replace poppy. Poppy is a good crop for us, it makes us lots of money and helps us get back on our feet sooner. I have never seen anyone else trying to help us."

Helmand is now plagued by a growing insurgency. The violence has escalated steadily over the past year, and the resulting instability has hindered the counter-narcotics effort as well as preventing the implementation of any coherent development strategy.

Farmers are not prepared to give the government or international aid organisations the benefit of the doubt. Disappointed by unfulfilled promises, they say they will continue growing poppy as long as they are able to make money from it.

"I will never quit cultivating poppy," said Rahim Gul. "Even if the government comes with sacks of aid, I still wouldn't believe them. This Karzai-Bush government is a liar."

Many Afghans view President Hamed Karzai as a puppet of the United States and President George Bush.

Rahim Gul's son brought him some tea, which he drank in one gulp, and then turned back to his work.

"I have to get these peanuts harvested so I can prepare the land for poppy," he said.

In Helmand's warm, dry climate, poppy is sown in the autumn and harvested in the spring. On a bright autumn day in Nad Ali, farmers were out with rakes and tractors on every plot of land, preparing their fields for planting.

A brief poll revealed that almost all these farmers were planning to grow poppy. The common theme was that there was no viable alternative that would yield the same kind of income.

Finally, one farmer, dressed all in black with a scarf covering his face to protect him from the dust, said that he did plan to stop.

"I never got any benefit from poppy, so I have decided not to grow it this year," said Sher Zamaan.

However, he insisted his decision had nothing to do with the official eradication effort, which he said could be circumvented through bribery.

"I don't give a damn about the government's anti-poppy campaign," he said. "If I paid them 1,000 afghani per jerib [0.2 hectare], my poppy would be safe. I haven't quit poppy cultivation because of the government. They have never destroyed our poppy, they just want money."

Farmers in Shin Kalay, another village in Nad Ali, told a similar story. Hossein, who belongs to the Hazara ethnic group in a province that is largely Pashtun, sided with the majority - he too will be growing poppy this autumn.

"Why not?" he asked. "It's a very good crop. We make good money."

Hossein explained that he needed cash for his son, who had just got engaged. Marriage is an expensive business for the groom and his family in Afghanistan.

"We need 600,000 afghani [12,000 dollars] just for him," said Hossein. "Without poppy, that will be impossible."

He had never heard of alternative livelihoods, and was not exactly clear about the provincial department of agriculture.

"This is all nonsense," he said. "No one in this village has heard about this [agriculture] department, and no one has offered to help us."

In the provincial capital Lashkar Gah, IWPR met Anwar Aka, who was about to return home to the Washir district with a sack of sugar that he had just bought.

Asked about poppy, the large man became angry, and set down his burden.

"We don't grow poppy in Washir," he said in a low rumbling voice. "We can't. There isn't a single drop of water in our karezes [traditional irrigation system]. We only have one karez for the whole of Washir district, and it doesn't provide a drop of water. So how are we supposed to grow poppy?"

According to Anwar, Washir is almost completely controlled by the Taleban, preventing the Afghan government and aid groups from working in the area.

In other districts, non-government groups have started project to build karez networks, install drip irrigation systems and encourage alternative crops in other ways.

But given the precarious security situation, monitoring such projects is difficult, and agriculture experts acknowledge privately that they have no control over ensuring that such improvements will slow poppy cultivation rather than facilitate it it.

"No NGO can come to Washir,"said Anwar. "We all think it would be better to get out. If I were living in Nad Ali, I would definitely grow poppy, because without it we can't afford to support our families. There is no work, no jobs. The government is just stupid."

He grabbed his sugar sack and stamped off.

Ghulam Nabi, head of the Helmand department for agriculture, was not optimistic that the alternative livelihoods programme was the answer .

"The department does not have the resources to help farmers with alternative livelihoods," he said. "We did give pepper and tomato seedlings to some farmers in neighbouring districts last year, but it definitely wasn't enough."

According to Ghulam Nabi, organisations such as the Central Asia Development Group were working in Helmand to provide assistance to farmers.

"But it is too little for the whole of Helmand," he added. "We need a large amount of international aid and support. Sending some seedlings to Nawa and Nad Ali isn't sufficient," he said.

The problem was well beyond their ability to cope, he added. "It is bigger than our department," he said. "It is bigger than our entire ministry. And it needs international coordination."

One thing the government was trying to do was raise the purchase price of crops such as cotton, in a bid to make them seem more attractive, as well as legal, alternatives.

"[Governor] Assadullah Wafa and I are trying to get 50 afghani [one dollar] for a kilo of cotton," he said. "The farmers might then look on cotton with more favour and leave off growing poppy."

However, he admitted that it will remain very difficult to prevent poppy being grown given the poor security situation.

"A lot of poppy is grown on reclaimed land such as desert," he said. "People dig wells, and it makes for a very good crop. The government will be able to control the cultivation only when it can bring security to those areas."

Barry Kavanagh, an advisor with Britain's Department for International Development, DfID, at Helmand's Provincial Reconstruction Team, said that to date, more than 100 million dollars has been spent on alternative livelihood creation in Helmand.

He said most of the funds had been committed by the US Agency for International Development, USAID, while Britain was contributing approximately 20 million dollars a year.

Kavanagh noted that while the US was working through private contractors such as Chemonics, the British were channeling their funding direct to the Afghan ministries for agriculture and for rural reconstruction and development.

"It is for the ministries to decide how to disperse the funds," he said. "I am not sure of the exact number of farmers who have been helped, but last year we donated 80 tractors to the government. They were supposed to use them during the planting season, to assist the farmers with ploughing and planting, and then, when poppy season came, the same tractors would be used to eradicate poppy."

Asked why, with all the funds going into assistance, most farmers in the prime poppy-growing districts of Nawa, Nad Ali and Marja remained unaware of alternative livelihood projects, Kavanagh had no ready answer.

"The complexity of the problem here is that poppy produces a lot more money than wheat or cotton," he said. "The farmers are more inclined to go for the big economic return. We need to show them that there are options away from poppy, which is illegal and causes harm to the people of Afghanistan."

With drug addiction and all its associated ills on the rise within the country, it was high time that farmers took their responsibilities seriously, Kavanagh added.

"We need to get farmers to think about having a moral conscience," he said. "If we can help them grow another crop that can give them a good income and sustain their families, then that is the choice they should be making."

States refuse to cut sugarcane price Thursday, October 04,2007 Business Standard [12]

NEW DELHI: Most of the sugarcane growing states have expressed inability to roll back state advised price (SAP) of sugarcane, citing political compulsion as reason.

The Union minister for food and agriculture Sharad Pawar on Wednesday called a meeting of sugarcane ministers as well as finance ministers of the ten leading sugar producing states, including Uttar Pradesh, Maharashtra, Bihar, Karnataka, Andhra Pradesh and Tamil Nadu to discuss the need for rationalisation of sugarcane price based on sugar prices.

In the meeting, Pawar argued that fixing SAP of sugarcane over and above the statutory minimum price (SMP) was leading to huge cane price arrears. The gap between the SAP and SMP had been widening drastically.

This resulted in huge sugarcane production and low sugar prices resulting in the sugar mills not being able to meet the cost of sugarcane and building up of cane price arrears.

As compared to last year, when there were negligible cane arrears, the arrears this year have risen to Rs 3,800 crore, affecting the entire sugar industry, including the farmers. The minister also asked the states to remove all impediments to ethanol blending.

"However, states expressed their inability to do away with SAP", said a source.

Cane growers constitute a sizeable population in states like Uttar Pradesh and reducing cane price could affect the government's vote bank. States like Tamil Nadu expressed reservations against giving up their power to tax ethanol.

While the centre fixes the SMP for sugarcane at the beginning of every season, states add to this, allegedly keeping electoral exigencies in mind.

In 2004, both the Supreme Court and the Allahabad High Court upheld the right of state governments to fix sugarcane price over and above the SMP announced by the centre. Consequently, states like UP and Haryana have been steadily revising the SAP every year to please the sugarcane farmers.

The SAP is usually much higher than the SMP. In UP, for instance, the difference between SMP and SAP was as high as Rs 40 per quintal this year.

When sugar prices were high, mills had no problem with the formula. However, with sugar prices crashing, the sugar mills have been incurring huge losses.

The sugar industry is facing its worst crisis with the mills unable to recover the cost of sugarcane. Last year's production, at 28 million tonnes, is 45 per cent higher than the previous year's 19.2 million tonnes. Consequently, sugar prices have crashed and most companies have reported a loss in the preceding two quarters.

The worst is yet to come. Prices are expected to fall further with yet another record production, over 30 million tonnes, projected for 2007-08. Annual domestic demand is around 20 million tonnes.

Active trading on cotton market Thursday, October 04,2007 DAWN [13]

KARACHI, Oct 3: Trading activity on the cotton market on Wednesday was maintained on the higher side as spinners and mills were not inclined to miss an attractive bait of competitive prices.

Analysts said prices are expected to fall further from the current levels on renewed selling by ginners owing to about 60 per cent increase in the arrivals of phutti during the fortnight ended Oct 1, 2007, which soared to 1.816m bales as compared to last season's comparable figure of 1.103m bales, showing an increase of 0.713m bales.

But later in the evening prices eased by Rs25 per maund on selling triggered by reports of higher arrivals of phutti into the Sindh ginneries, which also doubled to a million bales as compared to 0.450m bales at the same time last season.

Big-lot business was again the hallmark of the session as financially sound parties and having secured export outlets continued to build up long positions at the current levels, floor brokers said.

They said instances of quality war are not lacking but contenders are keeping a low key in an apparent effort not to work against their weaker links.

"The chief task before us to cover our forward sale positions as well as to keep prices within our export parity levels," said a leading spinner adding: "So far so is good but future price outlook will be finally set by the size of the crop."

According to conservative estimates, spinners during the current season will need 15m bales plus and there could be worries on the supply front toward the fag-end of the cotton season.

"But the steep decline in New York cotton futures for the last couple of sessions seems to have changed the world price outlook", another spinner said. A fresh fall below the 60-cent per lb level is expected to make imports of lint viable, he added.

Although it appears to be a distant hope as world consumption of lint has far exceeded the actual supplies despite higher crop in India and some other producing countries, he added.

New York cotton futures fell further by 1.75 and 1.87 cents per lb at 60.30 and 63.24 for both the ruling October and the distant December contracts, respectively, amid strong two-way speculative activity.

A further decline in these prices will certainly have negative impact elsewhere, including Pakistan, they said.

Official spot rates were, however, did not show any change and were quoted at the previous level of Rs2,875 per maund.

The following are some of the notable deals, which were gone through on Wednesday:

SINDH TYPE: 1,200 bales, Shahdadpur at Rs2,900 to 2,925, 1,000 bales each, Mirpurkhas and Sanghar at Rs2,875 to 2,900, 1,000 bales, Khairpur at Rs2,900 to 2,925, 400 and 600 bales, Pithoro and Tando Adam at Rs2,925.

PUNJAB VARIETY: 1,000 bales, Burewala at Rs2,885 to 2,910, 600 bales, each Pir Mahal, Bahawalpur and 400 bales, Gojra at Rs2,900, 400 bales, Khanewal at Rs2,925, 600 bales, Chichawatni at Rs2,875, 800 bales, Sahiwal at Rs2,890 to 2,900, 400 bales, Pakpattan at Rs2,890 and 60 bales, Muridwala at Rs2,850.

Mushroom yet to gain popularity Friday, October 05,2007 NEW AGE [14]

DHAKA: Mushroom, a vegetable containing medicinal and nutritional values, is yet to gain popularity due to lack of massive campaign and government's initiatives to boost the sector, entrepreneurs and agriculturists said.

Bangladesh now produces about 15 tonnes of mushroom per day but it is possible to yield 30 million tonnes per year, said Sheikh Mohammad Ruhul Amin, project director of National Mushroom Development and Extension Centre in Savar.

‘The country has huge potentials to export mushroom as about 100 countries import it from China,' he said, adding that the trade volume in Europe rose to $ 30 billion last year.

Mohammad Ali Shipu, a farmer and owner of Manna Mushroom in Mirpur said, ‘Now we produce mushroom seed and various food items from mushroom and earn between Tk 12,000 and Tk 15,000 per month.'

Mushroom, commercially viable for the farmers, has a bright prospect in Bangladesh and there is no crop in the world which can give return within a week. Mushroom entrepreneurs need financial assistance from the government to procure some machines for diversifying use of mushroom, he added.

Dr Shahidul Islam, director of field service wing of Department of Agricultural Extension, said mushroom cultivation need small space, even it may be cultivated inside the houses.

In Bangladesh, there are some 19 varieties of quality mushroom of which six varieties are cultivated commercially while other thirteen are under research.

Most popular varieties are oyster mushroom, milky white mushroom, straw mushroom, shitake mushroom, reishi mushroom and button mushroom.

A study conducted by BIRDEM Hospital during the period from July 2005 to January 2006 found that mushroom significantly reduced blood glucose, blood pressure, triglycerides and cholesterol of diabetic subjects without any deleterious effect on liver and kidney.

Mushroom is a good source of digestible proteins and fibre which is low in fat and energy, but makes a useful contribution to vitamin and mineral intake, the study said.

Even some species were proved to have strong anti-tumour and antioxidant activity by enhancing various immune system functions and lowering cholesterol levels, it added.

‘The mushroom production has started in the country since 1980 while the mushroom production centre has centred its activities only in production and how to supply it to the elite shops and Chinese restaurants exclusively instead of popularise it among the common people as their food habitat.'

At present, mostly the residents of Dhaka consume mushroom while the strategy of mushroom cultivation and its commercial and nutritional aspects would disseminate in the rural areas for creating widespread demand for the vegetables, according to the study.

Jainal Abedin, IRRI liaison scientist for Bangladesh, said the government would have to take initiatives for development of the strategy of mushroom cultivation for small and marginal farmers and to give preference how to include it in the common people's food menu.

The mushroom containing huge micronutrients and proteins is beneficial to human health and it helps to maintain normal growth of the people, the official said. ‘Abundance of protein in mushroom also helps develop the brain of children.'

‘Upper and upper middle class people have already been accustomed to consumption of mushroom but it requires much campaign to make it popular among the common people,' said Dr Khaleda Islam, a teacher of nutrition and food science institute at Dhaka University.

Mushroom contains 85-95 per cent water and it has also electrolyte, mineral and protein which are beneficial to the people who want to reduce overweight, Dr Khaleda added.

‘Mushroom is relatively high in protein, further it contributes a wide range of essential amino acid, low in fat which is between 3 per cent and 2 per cent and high in fibre,' she said, adding that mushroom also provides several vitamins particularly thiamine, riboflavin, niacin, biotin and ascorbic acid.