News

From the RSS:

• Tea production decreases by around 4 pc to 177.95 mkgs in August

  Tea production across India declined by around four per cent to 177.95 million kilograms in August this year as compared to the output in the year-ago month. The production volume in August last year was 185.48 million kgs (mkgs).

• Manipur moots crop compensation package for violence-affected farmers

  An independent survey conducted by Loumee Shinmee Apunba Lup, a farmers' body, claimed that a total of around 9,719 hectares of paddy fields in the valley could face crop failure as farmers are afraid of going into the fields because of sporadic firing from the lower foothills.

• Punjab Food Secy on procurement, says 'We expect target of 182 lakh tonnes of Paddy this year'

• A look into India's tur problem: Why is this dal always on the boil?

  India, the largest producer of pulses, is facing a shortage of tur dal, leading to increased imports. Issues such as hoarding and cartelisation in the importation contribute to price increases. The average market price of tur dal has risen by Rs 10 per kg, reaching Rs 149 per kg. To prevent hoarding, the government has reduced the stock limit for tur dal held by wholesalers and large retail chains. The Department of Consumer Affairs is monitoring stock levels, and the government has taken measures to boost domestic availability and contain price rise.

• Pulses supplies to remain constrained till Diwali

  There is likely to be a shortage of 1 million tonnes of tur till the harvest of new crops begins in December/January, while the production of kharif moong is expected to be lower by 12%. The quality of urad crop under harvest has been damaged due to rainfall in September.

• Small tea growers seek cooperation and support from organized sectors and government

  The National Small Tea Grower's Conference 2023 highlighted the significance of small tea growers (STGs) in the Indian tea industry and the challenges they face. They called for increased cooperation and support from organized sectors and government agencies to enhance their agricultural practices.

• MSP Committee may suggest agri-commodity trading should not take place below MSP

  The Minimum Support Price (MSP) committee is expected to recommend that futures trading for agri-commodities should not be allowed below the MSP. The committee believes this will encourage more farmers to participate in trading platforms. Additionally, the committee may suggest smaller lot sizes for trading contracts. The committee also wants exchanges to collaborate with Primary Agricultural Credit Societies (PACS) to hedge trading risks and make it easier for farmers to benefit from trading.

• Rice ban export is regulation rather than restriction for food security: India to WTO's agri committee meet

  India has defended its export ban on rice, stating that it is a regulation rather than a restriction and is necessary for the food security of its 1.4 billion people. India reiterated its commitment to ensuring food security in importing countries through exemptions granted upon request. The government has allowed exports of non-basmati rice to Bhutan, UAE, Mauritius, and Singapore.

• Crop insurance scheme PMFBY to touch an all time high this fiscal

  Enrollment in India's crop insurance scheme, Pradhan Mantri Fasal Bima Yojana (PMFBY), is expected to increase by 23% this fiscal year, reaching a record high of 37.5-40.0 million farmers. The scheme aims to provide financial support to stabilize farmers' incomes, particularly during periods of patchy rainfall caused by phenomena like El Nino. Despite delayed monsoon and below-normal rains in August, September has seen normal rainfall.

• Rainfall distribution in most places normal this year: Dr DS Pai, IMD

  Going forward, there can be more areas of northwest India where there should be withdrawal of monsoon by around the 15th of October. Around that period, the monsoon should withdraw from the region. But occasional rainfall activity could be there.

• Higher educational institutes create ‘Agri-Consortium’

  Indian higher educational institutes (HEIs) have joined together to form an 'Agri-Consortium', led by IIM Kashipur. The consortium aims to provide a platform for academics, researchers, students, and industry professionals to discuss trends and advancements in agriculture. The participating institutions have agreed to share startup databases, disseminate support programs, and share best practices.

• Sugar industry is now seen as a source of green fuel, says Shree Renuka Sugars Dy CEO Vijendra Singh

  Sugar sector has now transformed into a green energy sector where ethanol is playing a major role. Ethanol is a green fuel and considering the reduced carbon footprint and sustainability factor associated with it is leading the sugar industry to be re-rated by investors and other stakeholders, says Vijendra Singh, executive director and deputy chief executive officer, Shree Renuka Sugars.

• Govt aims 60% of wheat area under climate resilient varieties in rabi season amid El Nino fear

  The Indian government aims to bring 60% of the total wheat area under climate-resistant varieties for the upcoming rabi sowing season, due to strong El Nino conditions. Despite the challenges of climate change, the Ministry of Agriculture has set a target of achieving a record wheat output of 114 million tonnes in the 2023-24 season.

• Maharastra farmers destroying tomato crops as prices fall from Rs 200 a month ago to just Rs 2-3 per kg

  Tomato prices in Maharashtra, India, have dropped dramatically from Rs 200 per kilogram to as low as Rs 3-5 per kilogram, causing significant losses for tomato growers. The sudden decline in prices was due to an unexpectedly high tomato yield. Many farmers are abandoning their crops or destroying their produce as they cannot recover their investment. The situation is dire in various regions, with prices plunging in markets.

• India permits 75,000 tonnes non-basmati white rice exports to UAE

  India has lifted the ban on the export of non-basmati white rice and allowed the export of 75,000 tonnes to the UAE. The export was previously prohibited to control domestic prices and ensure food security. The exports will be permitted through National Cooperative Exports Limited, based on government permission and requests from other countries for their food security needs. India had previously allowed rice exports to Singapore and Benin is one of the major importers of non-basmati rice from India.

• 40% duty on certain onion varieties may be rolled back

  The government on August 19 imposed a 40% duty on all types of onions exported from India to tame strong bullish trend in onion prices. This caused a nearly 70% fall in onion exports, said market sources. Meanwhile, in a meeting held on Monday, traders from Nashik decided to continue their onion strike that started on September 20. This is not likely to affect the onion prices in the country.

• Indian Potash sees no Canada supply hit, hopes to extend deal

  Canada is one of the key suppliers of potash to India and Indian companies last year signed a memorandum of understanding with Canpotex to buy up to 1.5 million metric tons of potash a year for 3 years, starting from 2023.

• Centres sells 18.09 lakh ton of wheat in 13 e-auctions under OMSS to cool down prices

  Wheat is being sold through weekly e-auction at a reserve price of Rs 2,125 per quintal, which is at par with the current minimum support price.

• Paddy acreage up 3% to 411.52 lakh hectare so far this kharif sowing season, pulses area down 5%

  According to data from the agricultural ministry, the area planted with paddy has increased by over 3% so far during the current kharif sowing season to 411.52 lakh hectares, while the area planted with pulses has decreased by 5%. In the same period last year, there were 400.72 lakh hectares (LH) of paddy acres.

• Groundnut prices increase 20% as rains delay new crop

  Groundnut prices in India have risen by about 20% in a month due to heavy rainfall in Gujarat, the country's top producer of groundnuts. The delay in the arrival of new crops, coupled with low carry forward stock from the previous year, has supported the recent increase in prices.

• Centre makes it mandatory for traders, wholesalers & processors to disclose weekly sugar stocks

  "This mandatory weekly stock disclosure for these entities is another proactive step in the Government of India's efforts to maintain a balanced and fair sugar market. By preventing hoarding and speculation, GoI is aiming to ensure that sugar remains affordable for all consumers. This proactive measure empowers regulatory authorities to closely monitor stock levels and take prompt action against any potential market manipulation," the government release said.

• Sugar production expected to improve due to good rains in September: Food Secy

  The sugar production in India is expected to improve due to good rains in September, India's food secretary Sanjeev Chopra said on Thursday. "There's no shortage of sugar because production will be higher than our own consumption," he said.

• Onion traders in Nashik district go on indefinite strike, suspend auctions; minister warns action

  Onion traders in Nashik, Maharashtra, have suspended auctions indefinitely in protest against the government's decision to increase export duty on onions. The move has raised concerns about a shortage of onions and an increase in prices. Traders are demanding the cancellation of export duty, a reduction in market fees, and subsidies for transportation. Last month, traders accused the government of failing to fulfill its promise to purchase onions from farmers and of setting auction prices lower than announced.

• Govt to link 28 more mandis to eNAM: Agri Secretary

  The Indian government has announced plans to integrate 28 new wholesale mandis, or market yards, with the online trading platform eNAM. This will bring the total number of integrated mandis to 1,389. The Agriculture Secretary, Manoj Ahuja, highlighted the importance of providing key information to stakeholders in order to remove information asymmetry. He also emphasized the need to make the entire value chain more efficient and reduce wastage.

• Maharashtra bans interstate sale of sugarcane as drought cuts production

  The Maharashtra government has imposed restrictions on sugarcane farmers, preventing them from selling their produce outside the state. This is an effort to ensure that there is enough cane for the state's sugar mills to operate at maximum capacity. Erratic rainfall has led to a drought-like situation in Maharashtra, resulting in a drop in sugarcane yield.

• Maharashtra puts curbs on sugarcane supply to other states

  Erratic rainfall has led to a drought-like situation in Maharashtra, the country's second-largest sugar producer, and it is likely to see a big drop in sugarcane yield. Lower availability of cane leads to competition among sugar factories for the crop, resulting in mills poaching cane in each other's jurisdiction. Farmers prefer to sell sugarcane to the mills that pay higher prices.

• Basmati export floor price to hit farmers

  Farmers in Haryana, Punjab, and western Uttar Pradesh are facing a loss of ₹8,000-10,000 per acre due to the government's decision to set a minimum export price of $1,200 per tonne for basmati rice. Prices of the new crop have dropped by ₹400 per quintal in the past week. Millers and exporters are pressuring farmers to sell at a lower price in anticipation of the government removing the minimum export price after October 15.

• What's the impact of an erratic monsoon on the fields? A ground report

  Farmers in parts of the country have had to face an erratic southwest monsoon—excess rain in July followed by a record-dry August. ET travels to three states to gauge the impact on the fields.

• Govt launches unified portal for agri-statistics to provide credible data on agri sector

  The Indian government has launched the Unified Portal for Agri-Statistics (UPAg), a digital platform that aims to provide stakeholders with credible and standardized data for informed decision-making in the agriculture sector. The portal, developed by the Ministry of Agriculture, will address challenges related to data governance and offer features such as data standardization, analysis, granular production estimates, and commodity profile reports.

• Indian tea industry expects 8% decline in revenue this fiscal year due to fall in exports: Crisil report

  The Indian tea industry is expected to report an 8% decline in revenue this fiscal year due to a decrease in export volume, according to CRISIL Ratings. Operating profitability is also expected to fall for the second year in a row. However, low leverage and minimal capital expenditure are expected to keep credit profiles stable.

• India has ample sugar stock to cater to the sweet tooth of citizens at reasonable prices

  India's food secretary has dismissed rumors of an impending sugar shortage, stating that there is currently enough supply to meet the country's consumption needs for three and a half months. Concerns had arisen about low sugar production in India, the world's second-largest sugar producer, leading to potential price spikes and export bans. Sugar companies' shares rose following reports of a possible drop in production in Maharashtra.

• 'Shortage rumours about sugar not true,' says Food Secretary Sanjeev Chopra

• Amid uptick in prices govt cuts stock limit for wheat traders, wholesalers to 2,000 tonnes

  The Indian government has decided to reduce the stock limit on wheat traders, wholesalers, and big chain retailers from 3,000 tonnes to 2,000 tonnes due to an increase in prices. The government had previously restricted these players to a stock limit of 3,000 tonnes until March 2024. The decision to further reduce the limit was made following a 4% increase in wheat prices on the NCDEX to Rs 2,550 per quintal in the past month.

• Present tea auction system not helping in optimum price discovery in North India: Producers

  "In the previous English auction system, division of lots were allowed. One lot is more than 30 packets. If these lots are divided, then the smaller buyers would be able to participate. But they are not able now in the present model. As a result, competition is less and hence price discovery is not to the optimum extent", the official said.

• Flour mills under FCI scanner as wheat prices continue to rise

  The FCI sells wheat to flour mills and other bulk consumers under the open market sales scheme (OMSS) to keep domestic prices down. In June, it had offered 1.5 million tonnes of wheat under this scheme. However, wheat prices continue to remain firm. Industry executives have cited the lower volumes offered by FCI at its weekly tenders as one of the reasons for the increase in wheat prices.

• Namdhari Seeds sets up greenhouse facility near Bengaluru

  At this facility's Plant Pathology units, Namdhari Seeds will focus on developing pest and disease-resistant crop varieties, promising higher yields and reduced reliance on pesticides.

• BL Agro invests Rs 500 crores in Leads Connect's agri-tech for farmers

  Full-stack agri-tech firm Leads Connect has raised Rs 500 crores from FMCG company BL Agro Industries to enhance its agro-tech stack and provide more value to farmers. The funding will be spread over three years, resulting in a controlling stake for BL Agro. Leads Connect specialises in farm analytics and advisory, and will use the funding to improve technology, expand its reach among farmers, and establish AGRANI Centres in various cities. The company aims to enhance its AGRANI platform, which offers agri-fintech services, through further development of its Khet Se Kitchen Tak initiative.

• Maharashtra sugar output set to fall to lowest in 4 yrs after dry August

  The western state of Maharashtra, which accounts for more than a third of India's sugar output, could produce 9 million metric tons in the 2023/24 season (which begins on Oct. 1), down from 10.5 million tons in 2022/23, said B.B. Thombare, president of the West Indian Sugar Mills Association.

• Mansukh Mandaviya urges farmers to cut use of chemicals fertilisers by 20 pc in rabi season; warns against urea diversion

  The government is urging farmers to reduce their use of chemical fertilisers and pesticides by 20% in the upcoming winter-sown season. This move is aimed at protecting soil fertility and human health. The government is also planning to organise the 'Kisan Samridhi Mahotsav' event to showcase initiatives undertaken in the last nine years to boost farmers' income. The government has adopted a zero-tolerance policy against the diversion of highly subsidised urea to industries and plans to take strict legal action against those found guilty.

• Russian sellers stop fertiliser discounts to India, sources say

  Russian companies have stopped offering discounted fertilisers to India due to tightening global supplies. Last year, Russia became the largest supplier to India, but now companies are offering fertilisers at market prices. This could increase India's import costs and subsidy burden as global prices rally. Russia's aggressive selling last year reduced the market share of other exporters. Global fertiliser prices have been surging, making it challenging for Indian companies to accumulate stocks for the upcoming winter season.

• UNDP and NABARD sign MoU to co-create data-driven innovations in agriculture

  The United Nations Development Programme (UNDP) and the National Bank for Agriculture and Rural Development (NABARD) have signed an MoU to collaborate on data-driven innovations in agriculture and food systems. The partnership aims to support smallholder farmers by sharing open-source data for product development, technology transfer, and policy framing.

• September rains may not save sugarcane, pulses crops

  Experts have warned that heavy rains in the first few days of September will not be enough to mitigate the damage caused by scanty rains in August. Crops such as soya bean, sugarcane, moong, and urad are expected to have poor yields, leading to price increases and food inflation. The area under pulses cultivation has also decreased due to rainfall deficiency.

• India losing market share for basmati rice

  India's global market share in basmati rice is declining due to the government's decision to set a minimum export price of $1,200 per tonne. At a recent food fair in Turkey, no Indian companies received orders for the new basmati crop because of the high price. Global buyers are also delaying payments for orders shipped before the price was set.

• Over 81,000 farmers deemed ineligible for PM-Kisan scheme in Bihar

  Over 81,000 farmers in Bihar have been found ineligible for the Pradhan Mantri Kisan Samman Nidhi (PM-Kisan) scheme due to reasons such as paying income tax. The government has instructed state-owned banks to collect the refund amounting to approximately Rs 81.6 crore from these farmers. The agriculture department has urged the banks to expedite the process and freeze the accounts of ineligible farmers. Some banks have already collected around Rs 10.3 crore in refund money.

• Need to re-evaluate pearl millet cultivation in India amid climate change: Study

  Amid shifting weather patterns and evolving agricultural priorities, the study urges a timely revision of the classification criteria governing pearl millet cultivation zones, established in 1979. Currently, India's zones are based on rainfall and soil type -- A1 for arid regions in Rajasthan, A for semi-arid regions in North and Central India, and B for semi-arid regions with heavy soils in South India.

• World food price index at two-year low despite rice surge after India's export curbs

  Food prices: The United Nations Food and Agriculture Organization (FAO) reported that its world price index for food fell to a two-year low in August. The decline was driven by decreases in most food commodities, although rice and sugar prices increased. The overall index was 24% lower than its all-time high in March 2022.

• Millers seek raw sugar imports to make up for likely cane shortage

  There are concerns about production of sugarcane in Maharashtra and Karnataka, which is likely to affect availability of sugar for consumption and for ethanol production for blending with petrol in these states, it said. India had last imported raw sugar in 2017, after which the country has been an exporter. In 2021-22, India was the second largest exporter of raw sugar in the world.

• Huge potential to increase exports of organic agri products, says Commerce Secretary

  India has a significant opportunity to increase its exports of organic agricultural products, as the global market is valued at around $135 billion while India's shipments are only over $700 million. Commerce Secretary Sunil Barthwal emphasized the need to improve the quality and standards of these products. He urged the industry to promote the logo of India organic to enhance the credibility of the products in the international market.

• El Nino unlikely to cause sugar shortage in India: NFCSF

  The National Federation of Cooperative Sugar Factories Ltd (NFCSF) has dismissed rumors of a sugar shortage in India due to El Nino, stating that sugar availability in the 2023-24 season is not expected to be affected. While El Nino has impacted the monsoon in parts of Maharashtra, other cane-growing states have received above-normal rainfall, aiding the growth of cane.

• Indian agro-chemical industry can grow over 9 per cent notwithstanding Chinese competition: Niti Aayog

  Chand also observed that many Western countries are shifting from agrochemicals to biopesticides and the Indian industry needs to pay attention to this aspect. He urged the Agro Chem Federation of India (ACFI) to come out with a document on ease of doing business in agrochemicals. The Niti Aayog member was addressing a panel discussion on the occasion of the sixth annual general meeting of ACFI in the national capital.