Commodities Go From Hoard to Floored
KEITH
BEDFORD FOR THE WALL STREET JOURNAL (PHOTO)
By JUSTIN
LAHART Dec.
14, 2014 2:06 p.m. ET
One implication of what they are
learning: Prices haven’t bottomed yet.A standard theory of how commodity bubbles
form begins with an imbalance between supply and demand. This raises prices and
prompts some stockpiling, due either to worries about having enough or hopes of
selling for more in the future. This curbs supply further, pushing prices
higher still. Cautionary stockpiling morphs into hoarding, and the bubble
inflates.
Yet it is hard to see exactly how
these bubbles play out, says Princeton University economist Harrison Hong, as
commodity markets are complex networks of suppliers, middlemen and
consumers.When cotton hit 140-year highs in 2011, it was clear
hoarding was happening, but nobody knew how much. Big producers including India
and Brazil didn’t provide stockpile data. When The Wall Street Journal visited
China’s Shandong province that January, farmers were storing thousands of
pounds of cotton in their homes. Cotton has fallen about 70% from its
peak.Recently, though, researchers have accessed a huge data set on consumer
behavior.
For the Nielsen Homescan Panel, a
partnership between Nielsen and the University of Chicago Booth School of
Business, 100,000 U.S. households record the bar codes on every packaged item
they buy.Working with University College London economist Áureo de Paula and
New York University economist Vishal Singh, Mr. Hong used the Homescan data
to examine another bubble, in rice. This started in late
2007 when India, worried about food security, banned rice exports. Fears of
shortages emerged and panic buying ensued.
The U.S. didn’t face a rice
shortage, but prices still shot higher, and people started to hoard. Costco Wholesale and Sam’s Club evenstarted rationing bulk purchases.The
economists found some surprises. For example, while one might think
lower-income households are more prone to panic over rising prices, those with
higher incomes hoarded the most. Maybe they watched the news more closely or
just had more money to buy rice.
The really odd thing was that a
bunch of households who hadn’t bought rice before did so during the crisis,
then never did again. They may have been reselling it, but more likely is that
they just got swept up by the situation. Rice prices have fallen by roughly
half since early 2008.The takeaway: Commodity bubbles feed on irrational
behavior and don’t last forever. Eventually, high prices encourage lower
consumption and more supply. Prices ease, and stockpiles are run down.
Middlemen who were looking to profit on perceived shortages start selling to
limit losses.
Maybe they weren’t in a bubble,
but the two largest commodity producing industries, oil and steel, are seeing
something like that now as prices for crude and iron ore, used to make steel,
tumble.Now, imagine there was a bit more than just ordinary stockpiling going
on.
Driven by expectations that rising
global consumption would keep outstripping supply, people got swept up into the
same sort of scarcity mind-set as those peculiar rice hoarders.Certainly, iron
ore and other metals played a significant part as speculative collateral in the
rapid boom in “shadow lending” in China that Beijing is now squeezing. In the
U.S., there was an expensive land grab by exploration and production companies,
financed by everyone from regional banks to private-equity firms, convinced
that triple-digit oil was a given. That is now teeing up a potential crisis in
the high-yield bond market.As reality sinks back in, it is possible prices have
a lot further to fall.
Sacks of rice at a grain market
in India. When the nation banned rice exports in 2007, it kicked off a price
bubble which offered academics clues about how other commodities bubbles
work. REUTERS
Gov’t seeks private
sector rice importers under MAV scheme
In
a circular published in a newspaper on Saturday, the state grains agency issued
guidelines for importation of well-milled rice under the MAV Omnibus Origin
Rice Importation Program.Under its commitment to the World Trade Organization
as part of concessions for its special treatment on rice, the Philippines was
to import a total of 350,000 MT of the grain under the MAV scheme this year.
Some 163,000 MT fall under the MAV-Country Specific Quota (CSQ), while the
balance falls under the Omnibus Origin category. NFA data showed that a total
of 114,000 MT of rice have been imported as of Dec. 9 under the CSQ.
The issuance was “in line with government’s policy of allowing the private sector to participate in rice importation.”The NFA said qualified importers can bring in up to 5,000 MT each. There will be no required minimum volume and rice can be imported from any country.Neither will the agency give extra import allocation once the 187,000-MT total will have been reached.
“All rice to be imported under this program shall be levied a 40% tariff, to be paid in advance with the Land Bank of the Philippines,” the circular read. “Final assessment shall be made by the Bureau of Customs (BoC).
”NFA
further said that only high-value rice varieties are allowed to be
imported.Interested NFA-licensed importers will have to submit documents
required and pay P20,000 non-refundable processing fee between Dec. 28 and Jan.
31.Documents required consist of letter of intent (LoI), NFA import license
valid until Dec. 31, certificate of accreditation, as well as BoC-issued
clearance on absence of pending administrative or criminal case.There are also
specific documents required of each type of business (corporation/partnership,
sole proprietorship, farmers’ cooperative or organization, etc.)
Interested parties are also required to submit technical and financial documents.
“Applicant/importer who submits incomplete documents shall not be accepted using... pass-or-fail criteria,” the circular read.An MAV prequalification team, which will check all submitted documents, will endorse applicants to the NFA Administrator within 10 days of receipt of application.The NFA chief will then issue a certificate of eligibility (CoE) to the importer that will specify volume to be imported based on the LoI as well as duty and tariff to be paid.
Interested parties are also required to submit technical and financial documents.
“Applicant/importer who submits incomplete documents shall not be accepted using... pass-or-fail criteria,” the circular read.An MAV prequalification team, which will check all submitted documents, will endorse applicants to the NFA Administrator within 10 days of receipt of application.The NFA chief will then issue a certificate of eligibility (CoE) to the importer that will specify volume to be imported based on the LoI as well as duty and tariff to be paid.
Within
15 days from receipt of CoE, the importer should submit the document to the
Land Bank’s International Trade Department and pay the duty and tariff at any
Land Bank branch.Seven days thereafter, Land Bank will then send a written
notice to NFA’s Grains Marketing Operations Department that will specify volume
and variety of grains to be imported, schedule of arrival, cargo type and
port.An import permit can be obtained upon submission of shipping documents
prior to arrival. The permit will be issued upon payment of P2,000 processing
fee.
“NFA
shall publish a list of importers issued the import permit, indicating the
volume and the country of origin, on the NFA Web site...,” the circular
read.Shipments should arrive by Feb. 28.The grains agency said “95% arrival of
the importer’s authorized import quota shall mean substantial compliance with
the allocated volume.”“Failure to meet substantial compliance [sic] for the
arrival of the allocated importations... shall disqualify the importer from
future importation programs of the NFA.”However, in the event of force majeure,
an importer can ask for extension of the import permit’s validity and arrival
period, which however should not exceed 15 days.Importers seeking more time
should submit a written notice, explaining justification, within five days of
force majeure occurrence.
“The
NFA Administrator shall decide within three days from receipt of the written
[notice]; otherwise, it shall be deemed approved,” the guidelines read.The NFA
identified Poro Point in La Union; Batangas; Iloilo; Bacolod; Zambonga City;
Subic, Zambales; Tabaco and Legazpi in Albay; Cebu; Cagayan de Oro; Port of
Manila and Manila International Container Port; General Santos City and Davao
City as ports for the program.
The grains agency said it can revoke, cancel or suspend a CoE or an import permit due to involvement in illegal entry of rice or hoarding.Quantitative restrictions (QR) on rice -- which should have expired in 2012 -- were extended to 2017, according to Agriculture officials last June. As part of the continued QR on rice, the Philippines has committed to cut tariff under the scheme starting July 2015. The current tariff of 40% on MAV shipments up to 350,000 MT will be cut to 35% and for a larger volume of 805,200 MT. Purchases beyond that will be subject to a 50% rate. -- Claire-Ann Marie C. Feliciano
http://www.bworldonline.com/content.php?section=TopStory&title=gov&8217t-seeks-private-sector-rice-importers-under-mav-scheme&id=99594
Rice
prices expected to fall 10% in Kingdom
RIYADH: SHARIF M. TAHA
Published — Monday 15 December 2014
Last update 14 December 2014 11:26 pm
A prominent rice importer has predicted that rice prices in the
Kingdom are expected to go down by 5-10 percent in the coming months, local
media said.Meanwhile, an Indian rice dealer told the media that rice prices in
India have remained stabilized for the last period and, therefore, alleged
price hikes in the Saudi markets are unjustified.Mandeep Singh Bindra, an
Indian rice dealer and a key figure in the Emirates Grain Products Company
(LLC), ruled out any price hikes in India as production is nearing 90 million
tons and growing remarkably.
Saudi Arabia's rice imports from India are ranging between 1.5-2
million tons annually and imports are poised to grow, Bindra told Al-Eqitsadiah
daily.India rice exports to the Kingdom account for 20 percent of the Indian
total exports to all countries, he said.For his part, Mohamed Abdulrahman
Al-Shaalan, one of the key rice importers, said rice prices have stabilized
since last Ramadan with minor price reduction levels in some parts of the
year.He said the majority of the Kingdom’s rice imports from India is “Besmati”
brand which represents 70-80 percent of the overall imports.
Al-Shaalan said Indian rice production in the current season was
good with surpluses reaching 20 percent compared to last year’s production
levels. He affirmed investment relations with their Indian counterparts were
excellent and refuted alleged price exaggerations by the Indian traders.Saudi
markets are expected to witness a remarkable stability in rice prices over the
coming months with a decline to range between 5-10 percent on the back of oil
price falls, he said.
We’ve invested over
$1bn to achieve self-sufficiency in rice production–Owoeye, Elephant Group boss
BY BIMBOLA OYESOLA
In its effort to discourage rice smuggling and boost local
production and investment in its value chain through backward integration,
President Goodluck Jonathan in May this year approved the 2014-2017 Fiscal
Policy Measure on Rice.The new fiscal policy, which was a review of the 2013
Fiscal Policy Measure significantly reduced the levy on husked brown and
semi-milled or wholly milled rice to 10 per cent duty and 20 per cent levy for
investors with rice milling capacity from 100 per cent that obtained in the
former fiscal policy.
But for pure traders,
government reduced the levy to only 10 per cent duty and 60 per cent from 100
per cent. The policy was also to significantly boost food security.Before the
policy came into place, Nigeria has been a net importer and highest consumer of
imported rice in Africa as statistics from the Federal Ministry of Agriculture
show that she spends N356 billion yearly on rice importation.But Tunji Owoeye,
Managing Director of the Elephant Group, with presence in Nigeria, Senegal,
Ghana, Cameroon and Niger Republic and the National President of the Rice
Millers, Importers and Distributors Association of Nigeria (RMIDAN), said this
would soon become history as local manufacturers gear up towards bridging the
gap.
According to him, the Federal Government’s backward integration
has had a lot of positive impact on the local manufacturers, who hitherto were
importers, but have now gone into full production.He speaks more on the collaboration
with government and other stakeholders, and the country’s future in rice
production.
Excerpts:
Impact of government’s policy
on backward integration
Without doubt, government’s policy on backward integration has
had a lot of positive impact on the industry. Impact in the sense that it has
prompted us into ensuring that we take seriously the aspect of production and
processing as against huge reliance on importation of commodities. In the last
two years, government has been consistent in the campaign of its agricultural
transformation.
Take the rice issue, for instance, we all know there is a gap
between production and consumption, so what government has done through the
Minister of Agriculture, Dr. Akinwumi Adesina, is to ensure that we are given
incentives that will encourage us to go into backward integration and I must
tell you at this stage that this is really working.
As the Chairman and President of RMIAN, one has seen a lot of
increase in the investments by our members in both local production and
processing. In the last two years, our members have seriously taken up
additional investments in increasing their milling and production capacity, so
I think it is working.Some people have said that the government’s backward
integration policy has created an avenue for people to take advantage of the
loopholes in the policy to smuggle in rice from neighbouring countries and as
an association, we also saw it from that perspective. But as we began to work
with government in the areas of border strengthening and policy reviews, we’ve
seen a lot of improvement.
I will tell you what it was in January 2013 is not the same story
today. Yes, when the policy was changed, there were a lot of bombardments at
the border flanks, especially Niger Republic, Benin Republic and Cameroon. But
government has been proactive, I must tell you, by working closely and
seriously with the association on the policy in terms of building structures
that would work. You would have seen that government, within the last 18
months, has moved away from the 100 per cent levy, back to 60 per cent levy, so
I give kudos to them for being proactive and sensitive to the dynamics of our
market and we have adjusted to suit the challenges we face.The issue of
smuggling is a hydra-headed monster, not only in rice but in all commodities.
You will find the same problem in vegetable oil, sugar, auto, cement and other
commodities. I think that in as much as government is sensitive and proactive,
we will get the results and that seems to be the case.
Without patronising government, I must salute the efforts of the
Ministers of Agriculture; Industry, Trade and Investment and the Coordinating
Minister of the Economy and Minister of Finance for accepting to take a second
look at reviewing the rice policy. The policy has been reviewed and is now
double pronged in the sense that for investors investing in the value chain,
there are additional incentives. This is attracting additional capital
investment from industry players away from just trading.Also, smuggling is
being addressed by policy adjustments and the Customs have been proactive as
well.
This year, we’ve seen Customs taking pains to go through every
document of goods in transit, which has really put a lot of fear into smugglers.
When you see things happening positively in our environment, one has to commend
it. Indeed, it is not everything that is happening in Nigeria that is negative.
I have seen over the last few months that government has done remarkably well
in the area of revision and implementation of the rice policy in the country
and I can tell you that we are beginning to see the results in terms of investments
and in terms of acreage.
For a company like ours, the Elephant Group, it was not part of
our aspiration to go into rice production but today, we are in our third
harvest and we are growing rice in about three states and we have thousands of
out-growers, as well as a lot of communities that we have adopted and there are
other competitors in the industry that are doing the same thing, which is
helping the people of these communities in gainful employment.
Meeting local demand
No! Millers have not been able to meet the demand of rice in the
country and that is why you have the demand gap. And government in the new
policy has identified the need to allow imports for the shortfall between
consumption and local production. I must thank government that they gave us the
opportunity to partake in the committee, so we are also contributing to the
policy that affects us as players in the industry. We have also assured
government that we would take ownership for the success or failure of this
policy, because they allowed us to come and propose what we think is workable
and I think this is noble.
Public, private sector partnership
As a private sector company in the agriculture business in Africa,
we welcome the president’s transformation agenda. Since the new government
started, policy structures have been developed although there are limitations
as to how far we can go at the moment, because of non-existent infrastructure.
We have seen that government is interested in supporting the efficiencies of
value chain in agriculture.Since this government came into power, it has not
been part of the procurement, having left it to the private sector. That gives
serious operators in this business the opportunity to integrate and expand the
market and put themselves out there and gain more market share. We need
government to work much more closely with operators to develop the value chain
together. Within six to eight years, we can get to our destination but not
within the tenure of the present government.
Marketing of smuggled products
There was a period when we alerted them not to support smugglers
to distribute smuggled goods and it was something they took in good stride. I
must commend them as well that the situation is getting better by the day.
They are part of the value chain because they ensure that the goods get to the
consumers. We engage them regularly to enable them access information, and our
relationship with them has been quite cordial. We cannot work without them and
they cannot work without us.
Together we have been working to ensure that government’s target
of rice sufficiency set for the country is feasible. From both the theoretical
and practical perspectives of setting targets, these are meant to be reviewed
periodically. The target for rice sufficiency in 2015, I think, was set three
years ago, but there have been some setbacks in the area of smuggling, which
government has addressed by amendment of the policy. I think the target should
be revised and I’m sure that in the next three years, if the organised private
sector continues to go at the pace we are going and given consistency in
government’s policy, with the passion and the level of investment we have
committed, we should be close to the target. And I think that is not a serious
departure from what government has said originally.
Govt investment in rice
production.
With what we have seen from our members in the last one year, the
investment has been in excess of $1 billion. I can tell you that the market is
adapting well to homegrown rice. Both the homegrown and foreign-grown rice come
in the form of paddy. I think the only difference between them is the level of
sophistication of processing, which is also being corrected in Nigeria, because
some of the mills we use today come from renowned equipment manufacturers that
other nations we are importing from are using.
For instance, in Thailand and India, most of these machines are
from similar manufacturers, but the level of sophistication in the polishing
and de-stoning is the main difference. However, most of the millers today are
beginning to install good equipment and de-stoning machines to be globally competitive.
If you go to the factories of some of our members and see the rice produced and
then compare it with what is being imported, you will discover that there is
no difference, as the homegrown rice is as competitive as what we bring in and
I believe we have really moved up.
Fluctuations in price of rice
at Christmas and new year
Generally, prices are dictated by the forces of demand and supply.
Internationally, we have seen what is happening in other countries. For
instance, Thailand is sitting on more than 20 million metric tons inventory of
rice over the last two years, same as India, while Vietnam and Brazil are also
shoring up their capacity. I think because there is a lot of production going
on and also imports, the prices will not necessarily be out of reach, as our
members who are producers and those who only import always plan for this period
and if you put both together, I don’t think there will be any serious threat
with regard to price increase.
How to make agriculture
attractive to youths
Given its not too encouraging disposition to agriculture, part of
what Elephant Group has done is to conduct a lot of training for agro
entrepreneurs across Nigeria and some African countries where it has operations
and the idea is just to sensitise young school leavers to embrace agriculture
as a business. You must have noticed that there is a group of agro
entrepreneurs in the country. It is a massive group put together by government.
Also, President Goodluck Jonathan has created an arm in the Presidency
being supervised by Mrs. Barka Sani, a Senior Special Assistant to increase
the level of agriculture awareness in schools. This will not only sensitise
young school leavers, but also help them to develop interest while still in
secondary school and maybe influence their decisions in going into agriculture.
Because they will be made to see that they can make money in agricultural
endeavours like fishery, cassava, timber, rice, cocoa to mention a few.
Under the programme, as companies and agribusiness ambassadors,
we will be adopting schools across the country, encouraging them to grow what
is found in the region on their school farms, supporting them with money and at
the same time mentoring them. I believe that once this is in place and is sustained,
it has the potential to displace some white collar career choices among our
teeming youths. Just like it used to be in those days when cocoa was booming,
you find young school leavers not taking up paid employment but rather
preferring to be local buying agents for cocoa because they knew it would fetch
them more money. So we are coming back to such a time again when the opportunities
in the agricultural value chain will be seen to be more profitable than white
collar jobs.
Expectation from agric-based
firms going forward
We see a lot of companies, even the new ones that are coming into
agribusiness moving from small companies to medium companies to large companies
and to public quoted companies. Before now, most parents never wanted their
children to become farmers, but with millionaires and billionaires springing
up from the agricultural sector, shouldn’t the message be changed to reflect
the trend? First, let us not lose cognisance of the fact that there is need for
us to acquire basic education, because education is key in the practice of
agriculture today. You could be a medical doctor, an engineer or a lawyer.
I am a chartered accountant, it doesn’t stop you excelling in
agriculture. So what we are saying is that irrespective of your background, we
should all embrace agriculture as a way of life, and will deliver decent
profits to us. Our dreams, while we were in school, were not to go into
agriculture as many people were running away from it. But we found
opportunities in agriculture and came back to it irrespective of our professional
backgrounds and we have no regrets. I want to encourage every Nigerian and
African youth that farming is not for the poor and ignorant. It is a
profession that can lead to extreme prosperity and it is something that we all
can do.
Aspirations
Our main aspirations are to feed our people and to increase the
number of people we engage in employment. As a company, we want to increase our
employment numbers and that gives us a lot of joy when we are able to support
the government in taking people out of the street, especially serious-minded,
disciplined people.
We also want to ensure that our products are available in all
parts of Nigeria and Africa and we consistently have been doing this. As a
company, we also ensure that the quality of our products rival the best you can
get anywhere. We want farmers to come back, we want traders to come back and
tell us that, oh, this is what we bought from you and it gave us increased
output – all this will give us joy.
Nigeria’s poverty challenge
Frankly, poverty level in Africa is still high and I think
Nigeria is one of the best numbers we have in the continent, though I think as
Nigerians and Africans, we have responsibility to make a bold statement to
the world. In the sense that the only place you have land bank in the world
today is in Africa and when you say Africa, of course, you know the place of
Nigeria in Africa. So when you are talking of poverty alleviation, I think with
the kind of seriousness the government has shown towards agricultural transformation
and with the opportunity afforded us by the huge acreage of arable land in
Nigeria, which I believe is the single most important factor in poverty
alleviation, it can be attained.
We are delighted that government has taken a second step in
supporting agribusiness because we quickly need to move away from subsistence
agriculture to mechanised plantations. That is why the kind of new policies the
government is churning out with incentives to investors along the value chains
are helping to encourage companies like ours to invest more money into
agriculture. In as much as we keep having these kinds of policies that attract
investments, what we need to do is to amend the Land Use Act, which I think
shouldn’t be a problem given that we already have a land bank and in a few
years the issue of poverty can be considerably addressed.
Corporate social responsibility
programmes
The benefit for this company is that we have been able to empower
more people and we have been able to increase production. We are an input
company, so they have increased production and yields, and they are able to
take care of themselves. At the end of the day, we will be able to put them all
together, process and convert them into finished products via backward
integration. Whichever way you look at it, it is a win-win situation for us.
We see ourselves as Africans with an objective to empower Africans
and train and develop African entrepreneurs, especially in agribusiness.
Nigeria has the third largest population in the world after India and China,
and because of that, we believe that as entrepreneurs and as a company, if you
do not support and empower the people around you, you cannot say you have
genuine success. For instance, you can’t say you are comfortable, your family
is comfortable and you do not have any problems.
Because of that, we have taken it upon ourselves to employ as many
people as we can, not only in Nigeria but also in places like Ghana, Cameroon,
Niger and we are reopening our offices in Togo and Benin and other sub-regions
of the continent. Our business is across Africa and we ensure that we empower
people and have more food on the table. As we assist African people, we also
get better values in terms of funds and expanding the company.
Vacation
I take about three weeks off in a year and my perfect vacation
would be to visit an African country that is serene and close to nature. Africa
is a land of opportunity, irrespective of the area we look at it, both economically
and socially. If we can develop our tourism, more people will come to Africa
for leisure and business. Already, you see more foreigners spending their
vacation in Africa because of the natural and serene environment. As Africans,
we should value our culture and the products made in our country.
The United National Party
of Ranil Wickremasinghe can only increase the Cost of Living: The Common
Candidate should know this fact.
Posted
on December 14th, 2014
By Garvin Karunaratne
The Common Candidate declaring that he could bring the Cost of
Living down requires a last laugh because he does not know that it was the
United National Party his main supporter that abolished and closed down the
infrastructure that our country had to control the cost of living.
President Jayawardena abolished the main part and Premier Ranil
Wickremasinghe abolished what was left of the great infrastructure that
Sri lankan political leaders and administrators had carefully built up since
independence. I was myself a party to build up that infrastructure in my
service in the Administrative Service.
This infrastructure comprised:
The Marketing Department for controlling the prices of local produce-
vegetables, fruits, eggs etc..
The Guaranteed Price Scheme for controlling paddy and rice milling. This was
implemented by the Marketing Department and later by the Agrarian Services
Department,
The CWE(Cooperative Wholesale Establishment) for controlling the prices
of imported produce that was considered essential.
Price Controls
Weights and Measures Control.
All these programmes were implemented on the basis that the
Government had the right to intervene in all commercial activities in the
interests of citizens. This infrastructure was intact till 1977 when
at the behest of the World Bank and the IMF(International Monetary Fund) this
entire infrastructure was abolished or under funded because the tenets of
the Open Economy was for the Public Sector to give up all commercial
activities. That was left to the Private Sector.
In 1977 when President Jayawardena came into power he embraced the
Open Economy as advised by the IMF which meant that the Private Sector was the
engine of growth.
He dismantled the Marketing Department and the Guaranteed Price
Scheme for paddy and other cereals including Rice Milling and the major part of
the CWE was also abolished. What was left of the CWE was abolished during the
Prime Ministership of Ranil Wickremasinghe in 2002 and 2003.
Thus to expect the Cost of Living
to be controlled or brought down by anyone who is working with the United
National Party is a non runner. It cannot and will never happen.
Let us go into the working of this infrastructure because it
appears that the leaders who are supporting the Common Candidate and the Common
Candidate himself appear to be ignorant of the methods of controlling the cost
of living.
The writer worked as an Assistant Commissioner in the Marketing
Department from 1955 and in the Agrarian Services Department from its inception
in 1958 to 1967. Later he was in charge of these Departments and in charge of
Price and Weights and Measures Control as the Government Agent of a District.
The Marketing
Department.
The Department for Development of Agricultural Marketing of the
Fifties and Sixties under the able leadership of Commissioners Basset and later
B.L.W.Fernando ensured that prices of all essential local produce was
indirectly controlled and the traders were compelled to offer fair prices to
the producers and the retail shop keepers were compelled to sell at fair prices
to consumers.
As the Assistant Commissioner of a Province I visited all major
producer fairs, purchased produce at some and dispatched the produce to the
Tripoli Market in Colombo for sales overnight.” (Karunaratne: How the IMF
Ruined Sri lanka…, Godages) During my years in the Marketing Department at
least on three days in the week my day started at four in the morning to
visit producer fairs that opened at six. Then we did not have the
infrastructure of roads built by our President Rajapaksa and we laboured on
narrow roads for hours on end.
In detail,This Department had Assistant Commissioners in all the
major districts where local produce was grown. It had a staff of Marketing
Officers and Managers of Vegetable and Fruit Purchasing Centers and also had
Sales Depots in the main conurbations. In Colombo there were over fifty retail
outlets.
The method was to buy vegetables and fruits from producers, paying
the producers a higher price than what was offered by the traders at the
village fairs where producers brought their goods for sale. Very often at
producer fairs the purchasing traders get into a ring and offer low prices. At
the close of day the producers are compelled to sell to the traders at whatever
price because otherwise they will have to incur transport costs and moreover
the vegetable produce will waste away and become unsaleable. The
goods purchased by the MD was dispatched to Colombo and other
cities overnight.
The entire scheme was controlled by the Tripoli Market in Colombo.
There was a Marketing Officer at the Wholesale Market in Pettah, Colombo who
reported the availability and the prices to the Assistant Commissioner in
charge of the Tripoli Market. The Marketing Officers and the Assistant
Commissioners in the Districts reported the availability of produce
and the prices at which the traders purchased the goods. The Assistant
Commissioner at Tripoli Market analysed the prices in Colombo and in the
producer areas and fixed a purchase price which was higher than the rate at
which traders bought from producers. A very small margin of around 10 to
15% was kept for wastage and transport costs and a retail price was fixed for
sales in the sales depots in Colombo and other cities. This retail sale
price was lower than the sale rate at the wholesale market in Colombo.
The aim was to make available vegetables and fruits at cheap rates to the
dwellers in the cities.
The traders at both the producer areas as well as the traders at
the wholesale markets in Colombo had to adjust their rates according to the
rates fixed by us if they were to be in business. In other words the traders who
purchased at the producer fairs had to adjust their prices upwards as otherwise
no one will sell to them because the Marketing Department Depot was open and
buying. In the cities the wholesaler had to sell at a lower rate because the MD
retail units were selling at a low rate. While the margin we kept was in the
region of ten to fifteen percent generally the trader at the purchasing unit
kept a fifty percent mark up and the wholesaler in Colombo also kept a fifty
percent mark up.
I was in charge of the Tripoli Market in 1956 and I not only fixed
the prices to purchase produce in the producer areas but was held
responsible to ensure that all the City Stalls were full of stocks. I can yet
remember the names of stalwart officers- RFC Livera, Kulasingham,
Adhikari, who could be trusted and who ran round in circles to ensure
that all City Stalls had stocks.
The MD actually purchased around ten percent of the crop but we
were able to manipulate the prices that the Private Sector purchased and sold
because we did not keep any margin as profit. The small margin we kept was to
cover transport and wastage. We really did control prices. For instance
The Marketing Department at Ambalantota purchased curd from Ridiyagama at
around twelve in the morning. This was immediately dispatched to Matara by van.
This was brought to Triploi Market by overnight train the next
morning and offered for sale both at Triploi Market and at our depots. We
fixed a low margin to cover transport costs only. This effectively controlled
the prices of curd in the entire city.
The entire system was based on service and making a profit
was not a concern. In fact we Assistant Commissioners were found fault if we
incurred a profit or incurred a loss. We were expected to be able to avoid
making a loss.
The MD Scheme was successful in reducing the margin that traders
kept as profit, This enabled ensuring low prices in the cities. The
abolition of the MD Scheme enabled the traders to rule the roost and prices
skyrocketed because of the high profit margins they kept.This is a scheme built
up in Sri lanka which I have not found in any other country and I have traveled
in almost all Asian Third World countries.
It is to the credit of the Sri lankan Army that they
did purchase vegetables and sold at lorry sales in the City to bring the
cost of living down a few years ago. The Marketing Department had a
bakery that made bread, rolls and sold at cheap rates and this effectively
controlled bakeries. Today the Sri lankan Army had opened food outlets at
Battaramulla etc where meals are available at cheap rates. I have taken
meals there and can vouch for the quality. When I worked in the South I
was in charge of the MD Canteen at Kataragama where we made and sold rice and
curry, chappaty and thosai all at cheap rates to ensure that the hoteliers
there could not sell at fanciful rates.
It is sad that the United National Party killed this effective
method and it is hoped that someday this system will be restored. But that will
never happen with the Common Candidate.
The MD Cannery
In 1954 the MD established a Canning Plant and commenced canning
fruits. The fruits used were offered a floor price – a price at which we would
buy everything that was offered. Traders generally bought an amount that their
wholesaler needed and if the supplies were more they would reduce their
price. The MD offered floor prices for totatoes, red pumpkin, ash
pumpkin, organges and pineapples.
The tomatoes were made into tomatoe sauce and juice, the Red
Pumpkin made into Golden Melon Jam, the Ash Pumpkin made into Silver Melon
Jam, Oranges made into Juice, Passion Fruit made into Juice, Pineapple
made into Pieces, Rings and Juice. With this the Chena cultivators made
good money with the sale of their crop. On the other side Sri Lanka was able to
become self sufficient in Jam, Tomatoes sauce, and Juice. And save
foreign exchange by avoiding imports.The MD was even able to build up exports
of pineapple pieces and rings and Assistant Commissioner Oswald Tilkekeratne
went abroad often for this purpose.
When President Jayawardena abolished the Marketing Department the
Cannery was privatized. It is being run today by a private company but it does
not offer prices for local produce. My estimate is that fifty percent of the
crop is wasted for lack of buyers today. We are not self sufficient in fruit
juice today purely because of the waste due to the lack of sales and the lack
of a Cannery..
The CWE
The CWE imported all essential items and sold them at their Retail
sales Depots at low rates keeping a low margin. The CWE had a large number of
retail sales depots. This did not enable the Private Sector to import and
keep high profit margins. The main items imported by the CWE were lentils,
chillies, coriander and other curry stuffs,The CWE was partly abolished
during the days of President Jayawardena and the rest was abolished during the
time when Ranil Wickremasinghe was Prime Minister.
The Guaranteed Price Scheme
In order to enable farmers to obtain a maximum price for their
produce like paddy , kurrakan etc the Government offered a premium price,
The concentration was on paddy as Sri lanka was not self sufficient.Paddy was
accepted from genuine producers only through Cooperative Societies.
The aim was to ensure that the high price went to the producer.The paddy was
milled in Rice Mills that were run by the Department as well as through rice
millers.
This rice was issued on the ration and any excess was sold to
traders.This was an intervention into commercial activities and this Scheme was
abolished and the Rice Mills were abandoned and sold for a song.Once I gazed in
amazement at the ruins of the Ambalantota Rice Mill that was broken up and
parts sold for a song and parts left to weather and die. That was my home for a
full year when I controlled the Southern Province and then we milled rice on a
24 hour basis and employed over a hundred people. Now with the dismantling of
rice mills we are slowly importing rice mills.
After this Scheme was abandoned paddy purchasing was commenced and
then paddy was purchased not from genuine producers. Anyone that brought paddy
to government stores were paid the premium price. In the GPS days paddy was
purchased only from genuine producers on a list approved by the village level
officers and then the premium price offered went directly to the
producers. After the Scheme was abolished, when purchased were made, as
we do now, the premium price goes to the traders, mostly rice millers and
not to the producers.
Price Control
The prices of all essential goods like Lentils, Sugar, Chillies,
were controlled. These were imported goods and a reasonable margin was allowed
for the traders. Price Control was officially abolished. Though at a
late stage some prices are controlled the situation is far from the days
when goods were available at cheap rates., The items like Sugar and Chillies
were also sold at MD Sales Outlets.
Weights and Measures
There was effective control over weights and measures. Inspectors
were active.
We as administrators were heavy weights. The bakers in the cities
knew that we were on the look out for any bakeries that sold short weight
bread. If any bakery tried to, then the wrath of the Government Agent was
leashed out on them with frequent raids by Price and Weight Control
Inspectors. If the Government Agent charged bakeries for short weight the
bakers were certain of a maximum punishment at the hands of the Magistrate.
Under the open economy which has been followed since 1977 by the
United National Party and which the Common Candidate has vouched to uphold the
weight is for the Public Sector to be in the back ground and allow the private
Sector to make a fanciful profit. This entire infrastructure was
abolished by the Jayawardena Government at the behest of the IMF and up to date
there is no mechanism to control the cost of, living.
The very fact that the final blow to the CWE was done during the
time of the Prime Ministership of Ranil Wickremasinghe should be realised by
all parties supporting the Common Candidate..
Once this entire infrastructure was dismantled, it is
extremely difficult and very costly to establish it again.
This infrastructure was abolished at the instance of the IMF and
now because under the open economy we have become an indebted nation, it
is impossible to re establish this public sector activity because we will
displease the IMF whose blessings we require to attract foreign investors
and obtain loans to keep ourselves afloat. The culprit for this is the
United National Party of President Jayawardena that made Sri Lanka follow
the open-liberal economy and paved the way for Sri Lanka to become an indebted
country and Prime Minister Ranil Wickremasinghe.
Thus for the Common Candidate to state that he will control
the Cost of Living is something that deserves a last laugh. His very
statement that he will try to control the cost of living proves his ignorance.
Garvin Karunaratne,
Former Government Agent
13 th December 2014
13 Responses to “The United National
Party of Ranil Wickremasinghe can only increase the Cost of Living: The
Common Candidate should know this fact.”
Thanks for that history of price control efforts in Sri Lanka
and how they were undermined by the IMF, World Bank, and the UNP.The IMF has
been an advocate around the world for ‘privatization’ as they believe this is
the solution to all economic problems when the reality is that it only promotes
the interest of the very wealthy. They therefore attach their privatization
agenda to all of their loans, and it is commendable that Rajapaksa rejected IMF
loans recently, in part because of the undesirable strings attached.
Certainly, there is room for genuine capitalist activity within
an environment where the prices of essential goods and services are regulated,
and these mixed-economies seem to do best in delivering the optimal results for
the people living in these countries.Once you have the entire economy only
working for the wealthy few at the top while most citizens struggle to make
ends meet (the United States is a good example of this), then the general
happiness of the public decreases.
There is a REASON Denmark scores highest on the worldwide
happiness surveys, and it has more to do with harnessing capitalist tendencies
for the benefit of all and making sure essential items such as jobs, education,
healthcare and housing are always available to anyone who lives there and that
costs of utilities (oil, electricity, water, etc.) and food are never a
significant share of anyone’s income.It is totally embarrassing (or should be)
to walk around the streets of San Francisco and have to literally step over
multiple homeless people just to walk down the street. They say in America this
is the free market at work, but is this really desirable and conducive to human
happiness?
Dear Garvin Karunaratne, let me
acknowledge that I have not carefully read all that you have said because there
is so much that is being blogged about the Presidential Elections. Also it is
axiomatic that one has to read slowly and know a good deal of Economics to
properly evaluate what you have written. Ananda-USA has become “my teacher” on
certain matters, and his parody of Tennyson was much easier to skim
through.However, this much was certain the moment the last budget was
presented. All those handouts (and I have also benefitted from them) that were
announced have to lead to inflation, although a retired World Bank Finance
Consultant whom I meet daily has told me that a devaluation of the rupee within
a few months is not inevitable, but is likely.Almost everything that we write
now tends to be propaganda; that includes what I say! Let us hope that Sri
Lanka on the 9th of January is a better place for all its citizens as a result
of all this discussion.
Procurement
Relief for Sonepur
By
Published: 15th December 2014 06:02 AM
Last Updated: 15th December 2014 06:02 AM
The
process to continue for 90 days unlike 60 days earlier
Out of 32 rice millers, 13 have been
found eligible for procurement as they have delivered their quota of custom
milled rice. Steps have also been taken to rope in millers from
Sambalpur, Bargarh, Balangir and Nayagarh to participate in the process.Altogether
85 Primary Agriculture Co-operative Societies (PACS) will participate in the
process to procure 1.08 lakh tonnes of paddy. The procurement will continue for
90 days unlike in the past when it was closed in 60 days, he added.The
Collector said each farmer of irrigated area can sell 20 quintals per acre
while those in non-irrigated areas can sell 12 quintals to the PACS. Till now,
4,500 quintals have been procured and it will be increased from Monday. Earlier,
the district administration had announced that paddy procurement would begin
from December 1 but postponed it to December 9.
When the process took off, only
four PACS identified to procure paddy from farmers turned up at the mandis.Till
date, many farmers await arrival of PACS to lift their stock which is lying in
the open at Regulated Market Committees (RMCs) exposing it to moisture.According
to reports, while paddy is being procured in small amounts at the market yards
in Binka and Dunguripali blocks, the process is yet to begin in Birmaharajpur,
Tarbha and Sonepur blocks.
The problem has aggravated with
the State Government issuing guidelines to keep rice millers away from the
procurement process for their failure in delivering custom milled rice.With
harvest of 70 per cent of paddy crop over and farmers in a rush to repay loan
to avoid interest, further delay in procurement would force them to resort to
distress sale of their produce at less than the minimum support price of `1,360
per quintal.
Short-duration
crop varieties can help fight agriculture stress: experts
Sunday,
14 December 2014 - 1:19pm IST | Agency: PTI
Farm scientists need to direct their research towards challenges
like water scarcity, soil degradation and bio-diversity loss, say experts.Development
of short-duration varieties which are resistant to both biotic and abiotic
stress, without sacrificing on yield, will solve the problem, said J S Sandhu,
Agricultural Commissioner, Union Ministry of Agriculture here on Saturday.He was speaking at
the national seminar on 'Emerging challenges and opportunities in biotic and
abiotic stresses in agriculture' at the Directorate of Rice Research
(DRR).
Technologies like micro-irrigation, nano-technology and geographic
information systems will help address the biotic and abiotic stress in
agriculture, Sandhu said. Climate change is making agriculture complex, he
said.He recalled that 'Bengal Famine' due to brown spot disease in rice and
more recently, destruction of cotton crop due to boll worm had resulted in
destruction of farm economy. The decline in monsoon last year by 29 per
cent resulted in short supply offoodgrains by 16 million tonnes which was
colossal, he said.SK Patil, Vice-Chancellor of IGKV, Raipur, said stress in
agriculture arises due to population growth, climate change and declining land
holding size.
He emphasised on the need to design and develop farmer-oriented
natural resource management strategies to solve abiotic stress in agriculture,
particularly in fragile ecosystems.A Padmaraju, Vice Chancellor of ANGRAU,
Hyderabad, said abiotic stress is more prevalent in rainfed ecosystem, whereas
biotic stress is more in irrigated ecosystem. If both the stresses are
addressed, production of crops can be increased. In the US, there are only
four million farmers whereas in states of Andhra Pradesh and Telangana there
are 13 million farmers altogether.
This excessive number puts pressure on land and other natural
resources, he said.DRR's Director V Ravindra Babu said the Directorate is
working out strategies to overcome the problems related to both biotic
and abiotic stresses pertaining to rice. The research is
prioritised to address problems arising out of water scarcity, climate
change, shrinking land and other natural resources, he added.
Secret Service: This Derbyshire pub puts a new twist on regular pub
fayre
| Posted: December 14, 2014Extra effort was
appreciated at the Hollybrook Tavern.
YOU go out to the pub with a few
friends for some food. One of you has the lasagne, one a burger and another a
curry. None of this has any element of surprise. Except that this is not true.The
lasagne at The Hollybrook Tavern is made with pulled beef, not mince, and has a
particular succulent quality.The burger, initially a "classic",
equally tender, has had added cheese and a beautifully cooked fried egg,
perfect for dipping your seasoned, thick-cut chips in.The curry is not a
chicken tikka massala, it is a jalfrezi platter and comes with chickpea and
butternut squash dhal, basmati rice, poppadoms, onion bhajis and naan bread.Nothing
hugely out of the ordinary.
I mention it simply because the extra effort
was appreciated.But let's start at the beginning.The Hollybrook Tavern is on
the southern entrance to Heatherton, the first pub you hit as you come into
Derby up Rykneld Road.It stands out in its surroundings, built of what look
like reclaimed bricks (I am not a construction expert) in order to do so and,
on a pleasant weekday evening, couples and friends were sitting inside enjoying
the unpretentious ambience. And so your spy arrived with four friends in tow.We
had already taken a sneak peak online at the menu during the day so we had
decided on our mains before we had arrived.I had taken a liking to the menu –
enough dishes to give a fair choice but not too many – though we felt a little
let down by the starter options.
We fancied a few little nibbles, a sharing platter
of different flavours and textures, nothing too substantial.The pub does have
sharing platters but of chicken wings, of nachos, of breads, but not a mixture.In
the end we shared a portion of tempura prawns and one of beer-battered
mushrooms.As it turned out, we were brought enough for one each and they fitted
our needs perfectly, served in a mini galvanised bucket. Hot, tasty, crunchy,
juicy.My companions' mains I have described already but the dish that stood out
from the menu for your spy and my fifth companion was the slow-cooked beef rib,
served with more of those fat chips, a flat mushroom, onion rings and half a
tomato.It was huge.
A great thick bone with a lump of
meat that looked dry, cooked to within an inch but, when you cut into it, oh so
soft and moist. Your spy will admit to adding a little mustard on the side –
the one thing the dish was perhaps missing was a little pot of warm piquant
barbecue sauce.So, positives all round for the main courses.My companions then
each chose a different pudding and, while your spy pretended to abstain, it was
simply an excuse to be able to try each of theirs. And, I must say, they all
passed muster.The only mildly negative comment I will make is: serve food on
plates! Four of the meals were but the burger was served on a rather worn and
cracked board that had no lip, making my companion approach the egg-topped
burger rather tentatively for fear the yolk would run all over the table.
There, I've said it.I will leave the last word to the beer. Chosen by one of my
companions, it was Truman's Eyrie, beautifully golden and easy on the palate, a
perfect accompaniment.
30,000 sacks of rice
from Vietnam confiscated
ABS-CBNnews.com
Posted at 12/13/2014 1:04 AM
MISAMIS ORIENTAL - Operatives of the Bureau of Customs (BOC)
confiscated around 30,000 sacks of rice from Vietnam delivered to the Mindanao
Container Terminal in Tagoloan, Misamis Oriental.Authorities opened the
container vans, which contained sacks of premium rice, glutinous rice, and
sugar.According to Ruby Alameda, district collector from the Port of Cagayan de
Oro, the goods were in 100 container vans. They have so far opened 60 container
vans.She added that the cargo is considered smuggled as the importers did not
have the necessary import permit from the National Food Authority (NFA).
Two companies, EC Peninsula and New Dawn Enterprises, were named
as consignees but according to BOC, both denied owning the cargo.The agency
will auction the smuggled rice by January. --
report from Angelo Andrade, ABS-CBN News Northern Mindanao
Ogun Customs Command seizes 15 trucks of rice
From Moshood Adebayo
The Ogun State Command of Nigeria Customs Service (NCS) has seized
15 trucks of assorted bags of rice within one week.The Area Comptroller of
Customs, Mamudu Haruna, who made the disclosure, also warned importers of rice
into the country to desist from doing so through illegal routes.The assorted
bags of rice were said to have been concealed in various cars and other
vehicles.While detailing the activities of the command between December 2013 to
November 2014, the comptroller said the command collected N6, 467,642.83 as
against N5, 390,662,512.53 collected same period in 2013.
While assuring that the command was working diligently and
progressively towards achieving its mandate, Haruna expressed delight
that the anti-smuggling efforts of the command was also yielding fruitful
result.In this regard, he disclosed that the command recorded 1,482 seizures
between December 2013 and November 2014, with duty paid value of N1,568,533,843.00
as against 1,226 seizures with duty paid value of N1,142,018,383.00 in
the same period last year.Describing the achievements recorded so far as
unprecedented, Haruna expressed gratitude to the Customs
Comptroller-General, Dikko Abdullahi Inde on ECOWAS Protocol on Transit
goods. This he said had led to the quantum leap of imported vehicles on
which import duties were collected, which hitherto were smuggled into the
country without payment of import duties and taxes.
His words: “The unscrupulous importers are now reconditioned by
the effective anti-smuggling campaign since I took over the affairs of the
command in December 2013. And this has forced the smugglers to resort to lawful
declaration of imports and subsequent duty payment instead of risking seizure
of their goods.” Rice is not banned but it is banned when it comes into the
country through unapproved routes.
The border stations are
unapproved routes for rice but you can make other importations. It is a
Federal Government policy, it is not Customs’ policy. We are only here to
enforce the law, but these are the enemies of the law.“Buying rice is not
prohibited, it is allowed but go through the port where you’ll have to pay your
tax to government, it is important. You are not paying the duty to
Customs’ pocket but government.
USA Rice Outlook Conference held this week
in Little Rock
Among
those participating in the ribbon cutting ceremony that opened the conference
were Arkansas rice farmer and USA Rice Federation Chairman Dow Brantley and
Chairman of the Arkansas Rice Council
Steve
Orlicek.
By
USA Rice Federation
Posted
Dec. 13, 2014 @ 4:00 pm
LITTLE ROCK
The 2014 USA Rice Outlook Conference opened
this week, bringing together rice producers from all six major rice-growing
states and others from the U.S. industry for an educational program and trade
show. The annual conference is the largest rice convention held in the
United States.Among those participating in the ribbon cutting ceremony that
opened the conference were Arkansas rice farmer and USA Rice Federation
Chairman Dow Brantley and Chairman of the Arkansas Rice Council Steve Orlicek."Arkansas
is honored to host this year's conference," said Brantley.
"The support we've gotten from sponsors
and exhibitors is overwhelming and we're excited to provide a venue for them to
share their expertise and innovations."The conference educational program
kicked off Wednesday with a host state welcome from Governor-Elect Asa
Hutchinson who lauded rice farmers for their sustainability efforts,
emphasizing the impressive gains rice farmers have made over the past 20 years
in conservation of resources such as land, water and energy.
"The governor-elect is clearly plugged in
on rice issues and we look forward to working with his administration in the
future," said USA Rice President and CEO Betsy Ward.Wednesday’s program
included conference regulars and favorites Jim Wiesemeyer on politics and
Nathan Childs on crop outlook, as well as a learning session on the Farm Bill
and crop insurance options.
The afternoon program featured a panel
discussion on conservation opportunities available to growers led by former
Natural Resource Conservation Service Chief Dave White, an interactive session
on the Texas A&M Farm Bill decision tool led by Dr. Joe Outlaw and
presentations by state research officials on developments and the outlook for
each state.The USA Rice Outlook Conference is an educational service of the USA
Rice Federation
Pesticide applicator
training scheduled for Tuesday at rice research center
The first training will be held
at 1 p.m. Tuesday at the Rice Research and Extension Center.
By Submitted
Posted Dec. 13, 2014 @ 10:00 am
STUTTGART —
Posted Dec. 13, 2014 @ 10:00 am
STUTTGART —
The
Arkansas County Extension Service will hold three Pesticide Applicator Training
meetings this winter, with different dates, locations and times so
producers may be able to attend the training of their choice. The first
training will be held at 1 p.m. Tuesday at the Rice Research and Extension
Center. Additional training dates are:
• 1 p.m. Jan. 28 at Phillips Community College, DeWitt;
• 6:30 p.m. Feb. 10 at the Rice Research and Extension
Center; and
• 1 p.m. Feb. 25 at Phillips Community College,
DeWitt.
County Crop Production Meeting
These
meetings are open to all eligible persons without regard to race, color,
national origin, religion, gender, age, disability, marital or veteran status
or any other legally protected status. Persons with disabilities who require
alternative means for communication of program information (large print,
audiotapes, etc.) should notify the county Extension office as soon as possible
prior to the activity. For additional information, call (870) 946-3231 or (870)
673-2346.
C4 photosynthesis increases
crop yields
Saturday
13 December 2014 12:36PM
As
the world population increases, so does the need for more food. It is predicted
food production will need to increase 50% by 2050. With little space available
for additional farmland, there is pressure to increase crop yields.
Botanists
are aware of a special type of photosynthesis, which operates at higher
efficiency which has evolved across 18 families of plants covering 67
difference genera. Known as C4 photosynthesis, it is found in corn, sugar cane
and millet. The challenge is to identify the genes controlling this
photosynthesis, and implant it in crops such as rice, hopefully producing
higher yields.
The
work is a collaborative effort linking universities in Cambridge, Toronto,
Alberta and the International Rice Research Institute in the Philippines.
http://www.abc.net.au/radionational/programs/scienceshow/c4-photosynthesis-increases-crop-yields/5964178
Short-duration crop
varieties can help fight agriculture stress: experts
Sunday,
14 December 2014 - 1:19pm IST | Agency: PTI
Farm scientists need to direct
their research towards challenges like water scarcity, soil degradation and
bio-diversity loss, say experts.Development of short-duration varieties which
are resistant to both biotic and abiotic stress, without sacrificing on yield,
will solve the problem, said J S Sandhu, Agricultural Commissioner, Union
Ministry of Agriculture here on Saturday.
He was speaking at the national
seminar on 'Emerging challenges and opportunities in biotic and abiotic
stresses in agriculture' at the Directorate of Rice Research
(DRR). Technologies like micro-irrigation, nano-technology and geographic
information systems will help address the biotic and abiotic stress in
agriculture, Sandhu said. Climate change is making agriculture complex, he
said.
He recalled that 'Bengal Famine'
due to brown spot disease in rice and more recently, destruction of cotton crop
due to boll worm had resulted in destruction of farm economy. The decline
in monsoon last year by 29 per cent resulted in short supply offoodgrains by 16
million tonnes which was colossal, he said.SK Patil, Vice-Chancellor of IGKV,
Raipur, said stress in agriculture arises due to population growth, climate
change and declining land holding size. He emphasised on the need to
design and develop farmer-oriented natural resource management strategies to
solve abiotic stress in agriculture, particularly in fragile ecosystems.
source with thanks:http://www.derbytelegraph.co.uk/SECRET-SERVICE-Hollybrook-Tavern-puts-new-twist/story-25705508-detail/story.html#ixzz3LyBbaUPw
Rice Farmers In A Quandary
By Camelia Nathaniel
With the government deciding to
reduce the price of rice, the farmers are skeptical of receiving the price for
their paddy that was promised during the last budget.
According to the National Organizer of the All
Ceylon Farmers’ Federation (JVP) Namal Karunaratne, the farmers welcome the
decision taken by the government but he said that he hoped the government would
not use that as an excuse to reduce the price of paddy that was promised to the
farmers.
“At present, the farmers have no
stocks of paddy and the new price reduction will apply to them only after the
next season is cultivated. The government does not even purchase 5% of the
total paddy production of the local farmers, and the bulk of the paddy
production of the local farmers is purchased by the private sector. Even the 5%
that the government buys, they put such stringent rules such as insisting on
the moisture level of the paddy at less than 14% and reject a sizable portion
of the paddy. The farmers most often cannot dry the paddy to bring down the
moisture levels to less than the stipulated figure as the paddy drying is a
totally different field which the farmers have no capacity to carry out.
However he also said that if the
government continued this stance even after the elections are concluded, then
the traders are certain to use this to reduce the price of paddy and play out
the farmers. Although the government in their last budget promised a stable
price for paddy, the farmers charge that this is something that is floating in
the air as the stipulated price has not been legally brought into effect.“Hence
if such a situation arises it will be a great blow for the farmers and they
will certainly not be able to sustain their farming activities. Even now the
farmers are struggling and further reducing the price of paddy will only
destroy them to a point that many of them will be forced to give up farming.
Therefore we are keeping a close eye on the situation and monitoring the
actions of the government. What we say however is that in order to overcome the
issues faced by the farmers and encourage them to produce paddy, measures have
to be taken to reduce the cost of paddy production.”
Johnston Fernando
Minister of Consumer Affairs
According to the government
statistics, issued midyear by the Central Bank, the cost of production of a
kilo of paddy is Rs. 33.22. Therefore, having spent this sum to produce a kilo
of paddy if the farmer is forced to sell his produce for less than that, then
he certainly faces a big problem as he is unable to even cover his costs.
However, in spite of the repeated
complaints that this was the plight of the poor farmer, nothing has been done
to protect the farmer. Therefore the concern of many farmers is that with the
government deciding to bring down the price of rice, they will be the ones who
are made to pay and will eventually suffer. With the stipulated price of a kilo
of paddy at present at Rs. 40, if the farmer is facing this predicament, one
can only imagine what the poor farmers will have to face when the prices are
further reduced.
One of the main complaints that
the farmers have is that the cost of farming equipment has been steadily
increasing and the government has done nothing to regulate the prices of these
farming equipment and also the fertilizer and the pesticides. Although the
government on many occasions have stated that the fertilizer will be issued at
concessionary rates to the farmers, many of these farmers claim that they do
not receive such stocks. Karunaratne said that it was a welcome move for the
government to reduce the price of rice as it is a staple diet of the country
especially the people of the lower income group. However he said that in
relation to the reduction in rice prices, if the paddy prices drop too, then
the farmers will be in serious trouble.Therefore he said that the only way the
farmer could be saved would be to regulate the stipulated price.
If this is implemented, then no one can
manipulate the paddy prices and the farmers would not be forced into selling
their paddy at ridiculously low prices to the traders. Further the government
could have taken this measure when it was proposed in the budget by gazetting
it and having it passed by the parliament which would then be legalized. But
unfortunately the government too has been playing games with the farmers.
Importing of rice
Another issue that has been
affecting the local farmer is the fact that while the local paddy production is
being allowed to be manipulated by the middlemen, the government is allegedly
allowing the import of rice by creating a false shortage. Karunaratne alleged
that while the government is rejecting the paddy of the farmers by claiming
that it contains more moisture content, they create a falsified shortage of
rice and this permits the rice importers to gain permission to import rice.
The imported rice is sold at a
lower cost which is putting further pressure on the local farmers.“The problem
is that the cost of production of locally produced rice is higher than the rice
that is imported. Hence if the government does not take measures to reduce the
cost of production and instead opt to import rice, then this will only force
the local farmers to give up farming and focus on some other mode of income.However
the fact is that these farmers have no other means of earning and providing for
their families, hence when the farmers are forced into a difficult situation
where they are unable to sustain their trade, then this is when they commit
suicide.
”‘Therefore the government cannot
shirk their responsibility and pretend that by merely coming up with numerous
proposals alone they could hoodwink the people and the farmers and get away
from their responsibility. In places like India and China, the farmers are
looked after well by the government.The farmers only have to cultivate and the
government takes care of all their other issues and provides them all the
required incentives and requirements. They receive a proper price for their
produce and also assures them a stable market for their stocks. However in Sri
Lanka it is just the opposite and the government only promises the farmers the
sun and the moon on paper but in reality the farmers are let down badly to a
point that we have one of the highest rates of suicide in the farming sector,”
charged Karunaratne.
“This is why the government needs to take note of the real issues faced by the farmers and create an environment that encourages the farmers to produce more and take the country to a point where we export the excess produce so that the farmers too could boost their income. This would also boost the country’s economy and bring in much needed revenue. However what is happening is that those in power have also got themselves involved in the farming sector and a handful of them are manipulating the entire process where they make millions while the farmers are left in the lurch
Even in the recent issue faced by
the onion farmers, they were facing a grave situation where they could not sell
their produce for prices that would even merely cover their costs. Eventually
when their pleas fell on deaf ears of the government, the farmers flocked
together and staged a huge protest that finally forced the government to
address their grievances.“Last year we produced 64,000 metric tons of onions
locally but we imported 173,000 metric tons. This indicates that we are only
producing a fraction of the local requirement. But the irony is that even
producing just that mere fraction of the actual local requirement, these poor
farmers are unable to sell their produce at a reasonable rate. This being the
case what if the farmers produced the entire requirement of the country? Will
they be able to sell their produce?
‘This is why the government needs
to take note of the real issues faced by the farmers and create an environment
that encourages the farmers to produce more and take the country to a point
where we export the excess produce so that the farmers too could boost their
income.This would also boost the country’s economy and bring in much needed
revenue. However, what is happening is that those in power have also got themselves
involved in the farming sector and a handful of them are manipulating the
entire process where they make millions while the farmers are left in the
lurch,” he charged.
According to Karunaratne the
government does not care for the farmer and they simply leave the farmers to
carry out their farming on their own. This has also discouraged the younger
generation and they deviate from cultivation and turn to more stable sources of
income. “In fact in the 2012 budget speech page 10 the President said that he
would make the country self sufficient in rice production and set up four rice
processing zones.
North, South, East and the North
Central were the rice processing zones and according to the President, Rs. 200
million would be allocated for the purpose. He said that once the country would
be made self sufficient in rice production, by 2014 the country would be in a
position to export 200,000 metric tons of rice.
This government that promised so
much has done nothing so far and none of these promised zones were ever set up.
The government that said that they would export rice by 2014, had imported
100,000 metric tons of rice and they have also obtained approval to import
another 50,000 metric tons and have also given the green light for private
importers to import rice. This has to stop and the government needs to take
more responsible measures in order to safeguard the farmers and honour their
pledge to the farming community of this country and the people,” added
Karunaratne.
Rice imports by
traders soar
Sohel Parvez
“Many millers are avoiding
milling due to stiff competition from imports,” said Md Abdur Rashid, president
of Bangladesh Auto, Major and Husking Mills Association.During the aman harvest
season, farmers usually sell a part of their produce while millers increase
processing.But the large-scale arrival of low quality and cheaper rice put
local millers and farmers in a tight corner, Rashid said.Prices of parboiled
rice (5-percent broken) were $385 a tonne in India, compared to $422 in
wholesale prices for coarse rice in Dhaka.Imports are likely to fall in January
due to the weakening of the taka against the dollar, as witnessed by a smaller
number of new LCs, said Sarwar Alam Kazol, a rice importer.Retail prices of all
types of rice fell in Dhaka over the last month, according to the Trading
Corporation of Bangladesh.
"Farmers will be discouraged
from growing rice if the import continues," said Rashid, also managing
director of Rashid Agro and Food Products, a leading rice miller."We have
long urged the government to impose duty on rice imports. Rice imports should
be discouraged for the sake of farmers and local millers.”The soaring imports
came after Bangladesh harvested a record crop last fiscal year, and the
government is set to export 50,000 tonnes of rice to Sri Lanka.
Production rose to 3.44 crore
tonnes in fiscal 2013-14, from 3.38 crore tonnes a year ago, according to
Bangladesh Bureau of Statistics."It's a contradiction. On the one hand,
huge quantity of rice is imported. On the other, government is going to
export," said Nirod Boron Saha, president of rice and paddy stockists' and
wholesalers' association in Naogaon."There are no buyers (retailers from
cities). It seems that all of them are purchasing imported rice from border
areas," he said. “They are not getting fair prices for their produce,
and it will affect boro acreage in the next season," Saha said.“Farmers
are the ultimate losers.”
Published: 12:00 am Sunday, December 14, 2014
Rice
millers lift paddy at `600 per quintal
Posted in State by Ashutosh Samal On December 13, 2014. No comments
Post News Network
Malkangiri, Dec 13: Farmers are forced to sell paddy to rice millers and their
agents at dirt cheap price as procurement centres have not been started in the
district yet.
Farmers criticised the
administration for the inordinate delay in opening of procurement centres even
as paddy was harvested in the district several weeks ago. They added that
procurement centres had been opened in other districts.Farmers have to sell
their paddy at a price between `600 and `900, while the minimum support price
(MSP) of fair and average quality (FAQ) of paddy is `1,360 and that of grade-1
FAQ paddy is `1,400.
According to residents, they have piled up paddy sacks at their
backyards and spent nights watching the grains as the procurement centres are
yet to open.As they are deprived of space to store the huge volume of paddy,
they sell it to private buyers at very low prices. That apart, an immediate
need of money to repay the loans they had taken from local money lenders and
for their daily expenses pressed them to resort to distress sale of paddy, the
farmers rued.
Large-sized Agricultural Multi-purpose Societies (LAMPS) have
been entrusted with the procurement from farmers.Meanwhile, officials raised
concern as to whom the paddy should be transferred after procurement.
They said millers are yet to sign agreements with the
administration to take paddy for milling.According to official sources, in the
first phase, 4.47 lakh quintals of paddy would be procured in the district.
Seven mandies would be opened in Korukonda block, five in Kalimela, four in
Mathili, three in Malkangiri and Khairapur blocks each and two in Padia and
Kudumulugumma blocks each.
Source
with thanks: http://www.orissapost.com/rice-millers-lift-paddy-at-600-per-quintal/#sthash.9OL5gCAW.dpuf
Millers selling PDS rice, state in slumber
DC | L. Venkat Ram Reddy | December 14, 2014, 01.12 am IST
Since, most of the rice millers enjoy political clout, the
government too is not initiating any action against them.
Hyderabad: Rice millers in Telangana state are minting
money out of rice stocks meant for public distribution system.Though the
millers are supposed to hand over custom-milled rice (CMR) stocks to the
government within 15 days, they failed to do so even after the deadline was
extended by more than a year.Instead, they are earning crores by supplying
those rice stocks to districts within the state and neighbouring states.
Since,
most of the rice millers enjoy political clout, the government too is not
initiating any action against them.The government gets the rice for PDS by two
ways, namely custom-milled rice and levy rice.In CMR, the government purchases
husked rice from farmers and then allocates it to mills for processing for a
fixed charge and rebuys again from them.
In the levy rice policy, millers are allowed to
sell a certain percentage of rice (25 to 70 per cent) procured by them in the
open market, while the remaining (called levy rice) is collected by government
agencies at a minimum support price (MSP).Millers in Nalgonda, Karimnagar,
Nizamabad, Warangal and Adilabad have not handed over rice stocks to government
for the last one years.“Around 75,000 metric tonnes of rice stocks are yet to
be received by the government. If they fail the deadline of December 31, we
will raid the mills and book cases against them,” said C. Parthasarathy, the
commissioner for civil supplies.
He added that rice millers cite power shortage
as the reason for not completing milling of rice.“This could be one of the
reasons, but at the same time cannot be an excuse for delaying rice supplies.
There are complaints that the millers are sending those stocks to open market,”
Mr Parthasarathy added.However, T. Devender Reddy, president of Telangana Rice
Millers Association refuted the complaint. “None of the rice mills could
run to their full capacity due to severe power shortage for the last one
year. We have to also meet milling of levy rice quota,” Mr Reddy
explained.
Source with
thanks: http://www.deccanchronicle.com/141214/nation-current-affairs/article/millers-selling-pds-rice-state-slumber
Online Procurement Goes for a Toss
By
Published: 13th December 2014 04:24 AM
Last Updated: 13th December 2014 05:59 AM
BARGARH: Errors in data entry for online monitoring of
kharif paddy procurement have landed farmers of the district in a lurch. Since
necessary corrections in the data have not been made, more than one lakh
quintals of paddy are lying in the open in different market yards.According to
sources, out of 12,64,087 quintals of paddy brought to the market yards under
Regulated Market Committees (RMCs) at Bargarh, Attabira and Padampur, 11,30,450
quintals have been procured by Primary Agricultural Co-operative Societies
(PACS) till date. The rest 1,33,637 quintals are lying under open sky.
While market yards under Bargarh RMC have received 2,62,774
quintals of paddy, 2,58,378 quintals have been procured. Similarly, out of
6,73,980 quintals brought to Attabira RMC, 6,26,735 quintals have been
procured. The worst hit is Padampur RMC where 3,27,333 quintals of paddy have
been received and only 2,45,337 quintals procured.Apprehending that the paddy
kept in the open may germinate in the dew and deny them a purchaser, the
farmers have resorted to distress sale. They are selling paddy at `900 to
`1,000 per quintal directly to rice millers against the minimum support price
of `1,360 to repay loans.A farmer of Khairpali village B Appa Rao Choudhury
said it has been several days since he left home to sell his produce at
Godbhaga market yard under Attabira RMC.
Since his name does not
figure in the list of registered farmers, the PACs are denying to procure
paddy.Another farmer, Ekadasia Sahu faces similar fate. He is stuck at
Barahguda market yard under Bargarh RMC with no takers for his 200 quintals of
paddy.Admitting that there are irregularities in data entry, Assistant
Registrar of Co-operative Societies Lingraj Naik said steps have been taken to
edit data and include the names of farmers besides their land holdings.
Civil Supplies Officer Ramakanta Ransingh confirmed that about
one lakh quintals of paddy are lying in the market yards and efforts are
underway for procurement of the stock.Meanwhile, BJP MLA of Padampur Pradip
Purohit alleged that due to the conspiracy hatched by rice millers of Padampur
and Bargarh, the paddy stocks are not procured. “About 10,000 quintals of paddy
are lying in open in the market yards of Jharbandh, Dhaba, Loididhara,
Padampur, Jamla, Bartunda, Dahigaon and Kansingha,” he said.Names of more than
20,000 farmers are missing from the registered list and they are clueless about
where to sell their produce, he added.
Source with thanks: http://www.newindianexpress.com/states/odisha/Online-Procurement-Goes-for-a-Toss/2014/12/13/article2569169.ece
