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Published on Regoverning Markets (http://www.regoverningmarkets.org)

Regoverningmerkets South Asia Newsletter (Vol. 35, No. 50 November 24 – November 30, 2007)

By Suleri
Created 2007-11-30 06:18

Rice exports fall on high rates Saturday, November 24,2007 THE NEWS [1]

KARACHI: The failure of the authorities concerned to curb a hike in the prices of rice in the local market has caused a decline in the commodity's exports as costly imports of Basmati forced an importer country to introduce price ceiling.

Prices of all varieties of rice, particularly Basmati, have shot up in major international markets, prompting many importers to stop placing orders with their suppliers in Pakistan. During the first four months (July to October) of current fiscal 2007-08, exports of rice, the only cash crop available for exports, dropped by a significant 179,829 tonnes as compared to the corresponding period of last year.

According to official statistics, 593,239 tonnes of rice were exported, comprising 321,518 tonnes of Basmati and 271,721 tonnes of coarse rice) during the July-October period. In the same period last year, rice exports stood at 873,068 tonnes (304,232 tonnes of Basmati and 568,836 tonnes of coarse rice).

That showed a slight increase of 17,286 tonnes in Basmati exports during the period, but exporters said it was also not a good sign. The United Arab Emirates is one of the major traditional markets of Pakistani Basmati, which imports around 400,000 tonnes of the grain annually.

A sudden price increase in the Pakistani market has badly affected sales of Basmati in the UAE market as its municipality has issued directives for setting a price ceiling up to the maximum level of 115 UAE dirhams for a 39kg bag. This price level is far below the prevailing market rates of Super Basmati in Pakistan.

To meet that ceiling, Pakistani exporters are dispatching consignments of long grains (other than Super Basmati or mixed varieties of long grains like D-98) with the connivance of importers.

This is not only bringing a bad name to the exporters, but is also making Pakistani brands infamous for their poor quality. As a result, quality-conscious buyers are switching over to Indian brands, which are doing a good business.

During July to October this year, exports of coarse rice nosedived from 568,834 tonnes to 271,721 tonnes, a fall of 297,115 tonnes which was more than half. Coarse rice also faces the same situation ie a steep price hike in the local market and low exports as there is no other cheap variety to mix with it.

"This price restriction (UAE ceiling) is harmfully affecting rice exports due to higher prices in Pakistani market. Shrewd importers have started playing with quality in connivance with their suppliers, creating a bad impression of Pakistani Basmati in consumers' mind," a Dubai-based Pakistani importer told The News.

"It also provides a chance to anti-lobbies to speak ill of Pakistani Basmati," he added. This sensitive issue has failed to attract the attention of government authorities related to rice trade including the Ministry of Commerce, Trade Development Authority of Pakistan and Rice Exporters Association of Pakistan.

A leading rice exporter to the UAE revealed "the price ceiling is a conspiracy against Pakistani Super Basmati rice, which had a dominant share in the UAE market. The decision has been imposed only on Pakistan-origin rice while India is selling its brands at higher prices without any restriction."

"This is a dilemma faced by us," he said and demanded the government launch a crackdown against the hoarders and speculators who had artificially increased prices in the domestic market, creating problems for the exporters.

New rice crop records 40pc price hike Saturday, November 24,2007 THE NEWS [2]

LAHORE: As the poor segment of society will find it difficult to consume rice because of its escalating rates, the growers will get a full benefit of their crop. The price of the new crop is around 40 per cent higher than last year.

The rates of basmati paddy has been around Rs1,050 to Rs1,100 per 40 kg this year as compared to the last year rates of Rs600 to Rs700 per 40 kg, registering an increase of Rs400 to Rs450 per 40 kg. However, finally the price of basmati paddy last year had reached at Rs950 per 40 kg following the international markets high demand. Similar case was witnessed in other non-basmati varieties of rice like 386 which is the only most famous variety of non-basmati rice in Pakistan and its rates fluctuated between Rs825 to Rs850 per 40 kg this year as compared to last year of Rs450 to Rs500 per 40 kg.

The price of basmati rice has started from Rs1,200 per 40 kg. But after huge demand from international markets, especially from Iran, and Middle East estates the prices of basmati rice has reached Rs1,600 to Rs1,650 per 40 kg. Resultantly, following the higher tendency of basmati rice last year the price of this highly demanded crop this year picked up from Rs1,800 to Rs1,900 per 40 kg registering an increase of Rs600 to Rs700 per 40 kg this year. Similarly, the price of non-basmati 386 brand was Rs850 per 40 kg during the last crop season which was started from Rs1,300 per 40 kg this year. So an increase of Rs450 per 40 kg has been recorded in non-basmati rice as well which is over 30 per cent increase.

The growers had predicted that at least Rs200 per 40 kg in basmati rice would further increase in couple of weeks. Hamid Malhi Director of Farmer Association of Pakistan (FAP) paddy growers talking to The News said that though the country would not achieve the actual target of basmati crop this year, the per acreage yield is increased so the farmers would be able to get a better price.

He added that last year high demand of Pakistani basmati rice in international market increased the prices but the growers were unable to take advantage of the situation as they had already sold their crop at lower rates.

"However, this year the scenario has been changed and the growers are also getting good prices of their crop," he remarked. To a question, he agreed that poor would suffer from higher price of rice this year but it was the responsibility of the government to control the situation.

Meanwhile, Najaf Shah, former chairman of Rice Exporter Association of Pakistan (REAP), said that this year export target of rice is about 2.5 million tonne out of which basmati rice share is around 0.8 million tonne and remaining is non-basmati.

To a question, he said that export of rice to Iran and Dubai would decreased this year as compared to last year as the prices in Dubai market were lower than local market price while Iran had been demanding parboil rice which was also a non-basmati variety but in Pakistan production of this variety was very low. However, he was of the view that Pakistani rice would fetch a good price in other Middle East estates and Saudi Arabia and European countries.

Fertiliser distribution angers farmers Saturday, November 24,2007 NEW AGE [3]

DHAKA: Osman Gani, who is yet to get any fertiliser, could not cultivate maize. His frustration was growing fast as he didn't know when he would get it. Showing us his barren land at Purbashalmara village under Aditmari upazila, he said he had harvested Aman paddy from his land two weeks ago to produce maize in advance.

‘If I could get fertiliser today, I could complete the sowing of maize by tomorrow,' Osman said. He said nothing was going on properly due to scarcity of fertiliser this year.

‘I wanted to recoup the losses caused by the low yield of Aman by producing maize in advance. But I won't be able to do that,' said an unhappy Osman.

He said the member of his area had taken his name to give him an identity card so that he could buy fertiliser a month ago, but he hasn't been given the card yet. ‘I visited him several times but he failed to give me the card.'

Half a dozen farmers of the village surrounded us and echoed his grievances when they saw Osman talking to us. They alleged that the authorities concerned, without considering the farmers' interest, had scrapped the previous system of selling fertiliser and introduced a new system, which has given rise to the present crisis.

When we visited Bogra, Lalmonirhat and Kurigram, we saw that the farmers, instead of preparing their fields, were busy collecting slips and moving from one place to another to get fertiliser. Desperation was evident in their faces since the season for a certain crop does not last long.

The interim government, like the previous governments, has also failed to assess the actual demand for fertiliser in the peak winter season of crops and vegetables and introduced a new policy for fertilizer distribution, causing immense suffering to the farmers.

The government suspended sub-dealership and made the collection of slips from deputy assistant agriculture officers mandatory to buy fixed amounts of fertiliser from the limited number of dealers, which has made the process more difficult than before.

These steps have been taken to streamline distribution and check smuggling, but the farmers have to vault so many hurdles to get fertiliser that they need far more time than before. That is why many of them, in spite of sufficient stock as claimed by the government, have not been able to lay their hands on the much-needed fertiliser.

The government, realising the faults in the new distribution policy, recently decided to appoint 14,400 representatives all over the country to sell fertiliser quickly to farmers, but the damage has already been done.

Presently, there are only 4,800 dealers selling fertiliser throughout the country. They are simply too few to deal with the millions of farmers.

With the period for sowing winter crops and vegetables on its way out, farmers in the northern region are losing their patience as they are failing to get their required amount of fertiliser even for higher prices. On the other hand, the Boro season is only a couple of weeks away.

‘Even if there is enough stock of fertiliser, it does not benefit us as it remains in the godowns,' said Aftab Ali of Karnapur as he was standing in a queue in front of a dealer in Bogra town on Saturday. He got only one sack of fertiliser though he needs four sacks to grow potatoes on the four bighas of land owned by him.

He said the showing of land registration papers to get the slips has increased the difficulties faced by the farmers as they have to collect the slips first and then buy fertiliser from dealers, which is too time-consuming. Many farmers do not know how and from whom to get the slips and expressed frustration over the government's decision to suspend fertiliser selling in the open market.

As per the new policy, agricultural officers visit villages and sanction slips after seeing the land of farmers as well as the registration papers. They are yet to visit many, many areas.

‘The government shouldn't create problems for us on the plea of checking fertiliser smuggling. When will we prepare land and cultivate crops if we remain busy collecting slips and stand in long queues to get fertiliser?' said a resentful farmer in Barua village under Lalmonirhat sadar.

Mohammad Nader and his brother Abdul Kader came to Velabari bazaar in Aditmari upazila to buy urea, TSP and potash, but they got only urea.

The dealer of the bazaar said there was no supply of TSP and potash. ‘It will take us a few days to get those fertilisers,' he said.

Since the majority of the people in this region do not have their own land and cultivate others' land on lease, the need to show land registration papers for fertiliser has thrown them into deep trouble.

Introduction of the slip system has given rise to many unscrupulous people who, by manipulating the system, are making money in connivance with the agriculture officers and dealers in many places in the region, alleged farmers.

Since many farmers are not fully aware of the new system, they are buying slips from the middlemen. There are even people who somehow manage to get slips from dishonest officers and sell them to the dealers who sell them to desperate farmers at exorbitant prices.

Farmers say that in the past they bought fertiliser according to their need. Whenever they needed fertiliser they got it, even in the village bazaars, but now getting fertiliser has become a headache for them.

Many farmers in the northern districts have started growing crops without fertiliser or with only a small amount of it. Many have also abandoned any plan to cultivate crops due to fertiliser shortage.

The farmers appreciated the government's decision to appoint more representatives to sell fertiliser, but they fear it will take too much time, and in the meantime they won't be able to grow any crops.

They want the government to improve and streamline the new distribution system as they need fertiliser round the year for cultivation of various crops.

Pest attack hampers aman farming Saturday, November 24,2007 NEW AGE [4]

JAMALPUR: AMAN cultivation at Dewanganj upazila in Jamalpur is facing setback due to pest attack.

Usually aman harvest starts after mid November but this year the harvest would start one month later as the growers could not begin cultivation on time due to the recent flood.

According to farmers, aman land of eight unions under the upazila was the worst affected by pest attack. A vast tract of land in the Dangdhara, Paramrampur, Hadibhangha, Chikajani and Bahadurabad areas under the upazila has come under the attack.

The pest, locally called ‘gandhi' and ‘khol poka' attacked sheaves of transplanted aman on most of the aman field of six thousand hectares of land under the upazila. The green paddy plants have turned green yellow which would decrease the output, the farmers said.

The farmers said they could not spray pesticides in their paddy fields due to financial crisis. The recent twin floods caused a huge loss to them. Now they do not have enough money to cope with the problems. Moreover, the price of pesticides has marked sharp rise over the last two months. A 400-ml bottle of pesticides was selling at Tk 120 two months ago but now it is selling at Tk 180.

Tajul Islam, a farmer of village Dangdhara, said he had cultivated aman paddy on his five bighas (one bigha is equal to 0.33 acre) of land. But the pest attack has almost destroyed his paddy field.

Yakub Ali, another farmer, said he feared a downfall in production on his two bighas of aman field.

The farmers urged the higher authorities to supply adequate quantity of pesticides and take necessary steps to check the pest attack.

When contacted by New Age, Md Shiaiful Islam, upazila agriculture officer, claimed the situation was normal and under control. He added that 24 block supervisors were working in the area and advising the affected farmers on ways to save their crops.

Potato farmers face seed shortage Monday, November 26,2007 NEW AGE [5]

RANGPUR: POTATO cultivation in eight districts of the Rangpur-Dinajpur region is likely to face a setback this year due to shortage of quality seeds.

A total of 1.15 lakh hectares of land were brought under the potato cultivation with a production target of 19,56,700 tonnes. The demand for seeds in the targeted land is about 1.5 lakh tonnes while the Bangladesh Agricultural Development Corporation could supply only 1,600 tonnes of seeds to the farmers. The huge gap between the demand and supply of quality seeds has worried potato farmers.

Afzal Hossein, a farmer at Nabdiganj Bazar under the Rangpur district headquarters, said he had planned to cultivate potato on his one acre of land this year. He tried to collect seeds from the BADC and NGOs to ensure the quality. But he could not procure it, as the supply was very thin. So, he managed seeds from local markets. He apprehended that the production would be affected, as the seeds collected from local markets were not quality seeds.

According to farmers, they are somehow collecting seeds from local NGOs like BRAC and Rangpur-Dinajpur Rural Service, private sectors and elsewhere. Many of them alleged that the quality of the seeds that they were managing was substandard. Farmers feared that the production would be affected for the huge shortfall of quality seeds.

Officials in the Department of Agriculture Extension said a total of 1,15,100 hectares of land were brought under potato cultivation in Rangpur, Dinajpur, Gaibandha, Kurigram, Lalmonirhat, Thakurgaon, Nilphamari and Panchagarh this year while it was 1.35 lakh hectares in the last year.

Of the target, 33,500 hectares were brought under Rangpur, 26,300 hectares under Dinajpur, 16,700 hectares under Nilphamari, 16,200 hectares under Thakurgaon, 6,700 hectares under Gaibandha, 6,700 hectares under Panchagarh, 4,500 hectares under Kurigram and 4,500 hectares under Lalmonirhat.

Asadur Rhaman, deputy director of the Rangpur BADC, said there would be no shortage of seeds as a huge stock of seeds remained in the hands of farmers.

But MG Neazi, agriculture coordinator of the RDRS, said the farmers preserved potato for consumption which was being sold now in the local markets as seeds. ‘It is completely substandard,' he added.

Neazi said the RDRS had planned to combat the seed crisis launching a pilot programme. It has planned to train up groups of farmers in the production of quality seeds, he added.

‘About 70-80 per cent demands of the seeds are met up by the farmers. So, they need to be trained up in the production of quality seeds ', Neazi said.

MR's intervention sought in paddy issue Monday, November 26,2007 Daily Mirror [6]

COLOMBO: The JVP has sought presidential intervention to look into the paddy marketing issue in Polonnaruwa, alleging two powerful government ministers-cum mill owners are running a monopoly in the industry.

JVP MP for the district S.K. Subasinghe said Sunday that paddy stocks purchased by the ‘Agricultural Marketing Authority' are being issued to these two mill owners at Rs. 19.50 per kilo, which he referred to as a total injustice to small-scale mill owners.

Subasinghe said that small mill owners had agreed to buy paddy at Rs. 25 per kilo from the Authority, but these two ministers were preventing them from doing so using their political power.

"They are collecting paddy stocks purchased by the Authority from farmers in Polonnaruwa and Ampara. There is still a stock of 7000 tonns of paddy in Polonnaruwa, and another 3000 tonns in Ampara. We are asking the government to create the ground situation so that small mill owners can purchase at least this amount," he said.

He said that he informed President Mahinda Rajapaksa in writing on November 17 regarding this problem, and later raised it in Parliament as well.

"So far, no action has been taken to address the grievances of small mill owners," he said.

However, Agrarian Services Deputy Minister Siripala Gamlath who is also one of the biggest mill owners in Polonnaruwa, countered Subasinghe saying that they purchased paddy from the Authority two months ago at Rs.19.50 per kilo on the Nadu variety and Rs. 23 for Samba.

Gamlath said that they did so, according to a Cabinet decision, and the JVP was only comparing the price rates that prevailed at that time with the present market prices."We could have purchased this paddy stock within a few days according to our capacity.

They are envious and make these allegations against us. Now, the Cabinet has declared a price of Rs. 25 per kilo under the present circumstances," he said.

Orange production, price increase Tuesday, November 27,2007 HNS [7]

KATHMANDU: Orange farmers here are happy as the price and production both - of oranges - has gone up this year. "Both - the production and price of orange - has increased this year in comparison to last year," they said.

According to data provided by Panchthar Agriculture Development Office (PADO), "About 700 metric tonnes of oranges was produced in 18 VDCs including Phidim, Siwa, Nangi, Imbung and Angsarang in Panchthar last year." Orange farmers said that the price of orange was Rs 30 per kg last year but it is Rs 35 per kg in beginning of the season this year. "We sale oranges worth around Rs 15,00,000 to Rs 18,00,000 at Samdin and Talkharka of Phidim-7, every year," Lila Dhungana, a local farmer, said.

Encouraged by the rise in price, farmers are giving up planting paddy and maize and have turned to orange farming. "The production of orange has increased thrice compared to last year," Kalananda Mandal, technical assistant at the PADO, said, adding that they have recorded an income of Rs 1,50,00,000 from orange sale.

Afghanistan to boost agri exports Wednesday, November 28,2007 IN NEWS [8]

KABUL: Afghanistan wants to boost its exports of dry fruits, fresh fruits and vegetables, marbles and natural stones to India, and in return is seeking greater Indian investments in the agro processing, construction sector, and in trade and services.

"Our exports to India have declined since over a decade due to the disturbed situation in our country. Now our exports to India are only around $30 to $40 million. We want to increase our exports to India and want to attract more of Indian investment, which is now flowing at the rate of $10 to $15 million," Omar Zakhilwal, president and CEO, Afghanistan Investment Support Agency (AISA), told FE.

He said that his country has exportable varieties of dry fruits like almond, fig, raisins, apricot, pistachio, and fresh fruits like grapes, pomegranates, melons, apples, and medicinal herbs. "The growing middle class in India, with their rising income, would like to consume these healthy food from Afghanistan," he said, and added that Indian investors can also take the opportunity to invest in the agro processing sector in his country.

Zakhilwal was in India last week and addressed the representatives of the Indian industry at an interactive session hosted by the Federation of Indian Chambers of Commerce and Industry (FICCI). The Afghanistan government has launched a regional economic cooperation programme, which includes countries like Pakistan, India, Iran, Tajikistan, Turkmenistan, Uzbekistan, and West Asian countries. The first meeting of this group was held in Kabul in December 2005, followed by a meeting in Delhi in November 2006. The next meeting is in Islamabad in March 2008.

Afghanistan expects that with its new membership to SAARC, its trade relations with India and other countries of South Asia would get a boost.

5.54 lakh hectares of aman damaged Thursday, November 29,2007 NEW AGE [9]

DHAKA: Cyclone Sidr that struck Bangladesh on November 15 damaged standing crops on 5.54 lakh hectares of land, causing a loss of aman rice of about 13 lakh tonnes in the south, according to the final official assessment.

The assessment says livelihoods of 22.24 lakh farming families have been severely affected by the cyclone that hit 211 upazilas out of 227 in 30 districts.

The estimated damage in terms of crops and livelihoods is on top of aman production loss estimated at 12 lakh tonnes caused by two floods earlier. The crop loss by the floods and the cyclone is equivalent to the quantity of average annual shortfall of food grains in recent years.

Prepared by the Department of Agricultural Extension, the assessment report on losses caused by the Sidr was submitted to the agriculture ministry on Wednesday.

An earlier preliminary assessment by the food and disaster management ministry said about 69 lakh people of 16 lakh families were affected and crops on about 4.62 lakh acres, equivalent to 1.87 lakh hectares, were completely damaged in the 30 districts.

The DAE report said the cyclone fully damaged crops on 5,53,886 hectares of land and partially damaged crops on 15,12,878 hectares, out the total cropland of 26,31,601 hectares in the cyclone-hit districts.

The report has identified Barguna, Bagerhat, Patuakhali and Pirojpur as the worst-hit regions, followed by Barisal, Bhola, Jhalakati, Sathkhira, Khulna, Madaripur, Gopalganj, Shariatpur and Faridpur. The damage was less severe in the remaining 17 districts in comparison with others.

The aman production target in the four worst-hit districts was around 9,36,030 tonnes; the cyclone has badly damaged some 5,35,707 tonnes of aman in the districts, the report said.

Crops on 5,28,455 hectares of land out of 5,49,642 hectares cultivated in the four districts have been badly damaged and about 8 lakh farm families have also been affected by the cyclone, according to the report.

Regarding the devastation of aman crop in the four districts, IRRI liaison scientist for Bangladesh M A Hamid Miah said, ‘The government needs to take immediate steps like distribution of seeds of short-duration crops such as vegetables and pulses for immediate return for the farmers to minimise their losses of aman production.'

The cyclone badly damaged crops on some 2,04,380 hectares out of 7,80,186 hectares of land in Barisal, Bhola, Jhalakati, Sathkhira, Khulna, Madaripur, Gopalganj, Sariatpur and Faridpur, the report said.

The report said aman production of 5,55,997 tonnes out of targeted 12,67,134 tonnes was fully damaged in the districts. The number of affected farm families on the districts is 10,67,915.

Crops on some 61,272 hectares out of 13,01,773 hectares in the remaining 17 districts have been damaged by the cyclone.

The production loss of aman in the districts amounts to 2,03,611 tonnes and the number of affected farm families is 3,84,475.

The less affected districts are Munshiganj, Narayanganj, Dhaka, Narsingdi, Chandpur, Lakshmipur, Moulvibazar, Noakhali, Chittagong, Jessore, Rajbari, Narail, Cox's Bazar, Comilla, Feni, Kishoreganj and Manikganj.

No opium spraying from air for now: US Thursday, November 29,2007 REUTERS [10]

BRUSSELS: The United States has shelved a push for next year's Afghan poppy crop to be sprayed with herbicide from the air after opposition from President Hamid Karzai's government, a senior U.S official said on Wednesday. "We've talked to President Karzai about the programme we want to work with him on this season," Thomas Schweich, the U.S. coordinator on counter-narcotics in Afghanistan, told Reuters.

"He has said he doesn't want to do aerial eradication so we won't do aerial eradication. If he changes his mind, we will," Schweich said in an interview during a trip to Brussels.

Aerial spraying, used by the United States to fight cocaine production in Latin America, is highly contentious.

It is championed by counter-narcotics officials in the White House and State Department as the most effective way to destroy poppies in Taliban-controlled areas.

But it has run into broad resistance from Afghan officials, the U.S. Congress and Defense Department, while European allies fear it could backfire on efforts to win over the Afghan people, according to officials involved in the discussions.

The Afghan government has also cited health concerns for local residents. The United States argues that the herbicide involved, glyphosate, is safe and widely used by U.S. farmers.

Assuming no change of policy from Karzai, Schweich said the United States would concentrate on less controversial ground eradication techniques, including a programme managed with local governors which has seen only patchy results so far.

"That programme is going to continue. It got about 15-16,000 hectares last year. We didn't think it was enough so we are going to monitor very closely whether it is down equitably," he said of suspicions that powerful players in the opium trade use their influence to ensure their fields are not targeted.

The U.N. Office on Drugs and Crime (UNODC) said this month Afghanistan accounts for 93 percent of world opium production and is the biggest narcotics producer since 19th century China.

POPPY-FREE

Profits from opium fuel the Taliban insurgency and the growth in the trade has highlighted the failure of Afghan and British-led international efforts to tackle the problem.

Schweich said ground eradication operations would need to be better guarded from attack but stressed protection should come from Afghan security forces rather than NATO's 40,000-strong peace force, which already complains of being under-resourced.

"It will require NATO coordination and intelligence-sharing ... But we don't anticipate seeing NATO troops acting as eradicators," he said.

Critics say air spraying would give the Taliban a powerful propaganda tool among villagers devastated by a Soviet campaign that destroyed food crops with aerial defoliant.

Yet Schweich rejected as untrue the perception that spraying would mostly hit impoverished farmers who would then be deprived of their income, saying most opium production was concentrated in the less poor but more violent south of Afghanistan.

"There are 13 poppy-free provinces in Afghanistan and there is a good chance it will be 18 by the end of the season -- which means more than half the country both geographically and in terms of provinces will be poppy-free," he said.

Schweich said the United States was also stepping up support for efforts to crack down on ringleaders of the drugs trade, including senior Afghan officials suspected of involvement but against whom firm evidence was difficult to collect. (Editing by Charles Dick)

Tobacco lobby blocks gory warnings Friday, November 30,2007 Times of India [11]

NEW DELHI: There will be no gory pictoral warnings on tobacco packets from December 1. The government's move to have pictures of cancerous tumours on cigarette packs and other products to scare people away from smoking has been scuttled yet again by the tobacco lobby.

Sources in the health ministry told TOI that in a major volte face, the group of ministers headed by External Affairs Minister Pranab Mukherjee has decided to take "a relook at the pictoral warnings".

This was conveyed to the Shimla high court on Wednesday by the Union health ministry, which has asked for four months' time to implement its decision.

Another petition has been filed by tobacco company Godfrey Philips in the Shimla high court seeking eight months' time to introduce the new labels.

The court deferred both the hearings till December 13.

Organic farming a must for food security Friday, November 30,2007 NEW AGE [12]

DHAKA: Experts, farmers, academics and activists said organic agriculture would make the sector more sustainable and also improve food security, apart from promoting the gradual revival of biodiversity.

They pointed out several drawbacks of chemical agriculture along with the ill-effects of genetically modified organisms at a seminar on organic agriculture and food security on Thursday, but there were also dissenting voices pointing out that hybrid varieties of agricultural crops had become an important factor in increasing productivity and technology should be used in the interest of the people.

The discussion began with the presentation of a concept note by Shahidul Islam, a coordinator of Unnayan Dhara, a grassroots non-governmental organisation that organized the event at the National Press Club. Shahid outlined different problems that agriculture faces today. He recommended cooperatives as effective means to help the farmers as well as the agricultural sector in general.

Kajal Chatterjee from Prip Trust said the government had gradually opened up all the sectors with its wholehearted belief in the market economy which has brought doom to the farmers in particular and agriculture in general. ‘This has led to a complete commodification of agricultural produce and this means of livelihood, this way of life has turned into merely another sector for commerce and trade.'

Alauddin, a plant protection specialist from the Department of Agricultural Extension, stressed the point that although agriculture is integral to the survival of a nation of some 140 million, the curriculum of schools at any level of the education did not reflect that.

‘There are hardly any institutes that train or provide academic grounding for mid-level agricultural officers.' He also suggested there should be increased effort by researchers to take agriculture even further and ensure food security of the country.

AM Badrul Hasan, a former economic minister posted at Bangladesh's Geneva mission, pointed at the hard realities. ‘We must ask ourselves whether we have enough resources and land to feed a nation of 140 million through purely organic agriculture.

We must ask ourselves whether we can afford to go back to the traditional ways and still feed all these mouths. The logical answer would be a resounding "no".'

Referring to a point made in the concept note which quoted a study by the Food and Agricultural Organisation that claimed that there was enough arable land in the world to feed all the people through organic agriculture, Badrul said, ‘But this has been calculated with a world perspective. We must think in the national perspective.'

Mahfuzullah, head of the Centre for Sustainable Development, said the issue of organic agriculture and food security was one that needed extensive debate and discussion.

‘It cannot be decided in one discussion or debate. There must be more debates and discussions on the issue, involving far more people, for us to arrive at a reasonable decision.'

Firoz Shah, a farmer from Jhenaidah, criticised the Green Revolution, saying that this new form of agriculture has only increased the involvement of business and commerce in agriculture. ‘They gave us seeds but they told us that we would need more inputs, which would have to be bought from them. The foreign companies have increased their business of selling fertilisers, pesticides, fuel, agricultural implements and so on because these hybrid seeds are so vulnerable that they need far more of such inputs. We, the farmers, do not get rich but those who are engaged in the business of selling these inputs become rich in no time.'

Uttam Kumar Deb, a senior researcher of the Centre for Policy Dialogue, said, ‘It has been a natural process of human history that people have embraced newer technologies. It is important that we allow our agriculture to reap the full benefits of such technologies, such as hybrids and genetically modified organisms.'

He said that people would be violating history and going backwards if they shun these results of modern technologies and return to organic agriculture.

Talib Bashar Nayan, the managing director of Unnayan Dhara, an organisation that is engaged in research in numerous villages in several districts of the country, said it was very much possible to ensure food security through organic agriculture since it called for a balance of all the factors of agriculture and a holistic approach. ‘But we certainly need further discussion and debate over this issue to come to a unanimous conclusion.'

Talib Bashar chaired the session, while Ziaul Hoque Mukta, livelihoods coordinator of Oxfam GB, moderated the discussion.

Paddy production in Dhanusa to triple Friday, November 30,2007  THE KATHMANDU POST [13]

JANAKPURDHAM: Despite large swaths of land remaining uncultivated, officials have predicted that production of paddy would triple this year in Dhanusa, a leading paddy producing district.

According to Chulhai Chaudhari, Crop Extension Officer at the District Agriculture Development Office (DADO) of Dhanusa, of the total 60,000 hectors of land suitable for paddy production, farmers planted paddy in around 54,000 hectors this year, up from the 36,000 hectors cultivated last year.

"Favorable weather is the main reason behind the robust growth in paddy production," Chaudhari said. DADO stated that productivity has also shot up to 3.2 tons per hector this year from 2.8 tons last year.

However, officials predicted the production of Basmati rice, a popular variety of paddy, to fall significantly this year due to frequent floods in pocket areas of the district like Jadukuwa, Raghunathpur, Sabaila and Sonapara where farmers had had to plant again and again.

"Our paddy fields where we used to grow Basmati rice are now full of sand," Jagadev Yadav Biraji, a teacher in Sonapara said.


Source URL:
http://www.regoverningmarkets.org/en/newsletters/south_asia_newsletter/regoverningmerkets_south_asia_newsletter_vol_35_no_50_november_24_november_30_2007.html