Farmers end protest, but
threaten to return
LAHORE:
After holding a meeting with Chief Minister Shahbaz Sharif, the agitating
farmers decided to end their protest late on Saturday night, but warned they
would return in a fortnight if the promises made to them are not
materialised.Talking to Dawn, Khalid Khokhar, leader of the Pakistan Kissan
Ittehad, said Shahbaz Sharif promised to bring Ishaq Dar in the meeting to be
held on Friday next and pledged the federal government would announce support price
of paddy and cotton.He also promised that Trading Corporation of Pakistan (TCP)
would be made to procure cotton and Passco would be involved in a paddy
purchase drive, as demanded by the farmers.
In
addition to the federal subsidy of Rs15 billion on fertilisers, the provincial
government would also contribute Rs20 billion to make the vital input cheaper,
Khokhar said. On top of it all, he said, the CM also directed the chief
secretary to ensure all dues sugar mills owed to farmers were cleared immediately.
He also directed the inspector general of police to withdraw cases against the
farmers lodged for protesting for their rights.“We are going back, but with a
warning that we would return within two weeks if all these promises are not
fulfilled,” he said.The farmers want official notifications to this effect, not
simple promises, he stressed.
Published
in Dawn, August 23rd, 2015http://www.theland.com.au/news/agriculture/cropping/general-news/farmers-eye-el-nino-forecast/2740907.aspx
Delayed
planting, poor rain may hurt rice yield
TOMOJIT
BASU
NEW DELHI, AUGUST
24:
Delayed planting and poor rainfall distribution can play a
spoiler in production of rice for 2015-16 even if acreage in Kharif, the main
season for the cereal, continues to edge up than last year with 86 per cent of
sowing completed.As on August 21, rice had been planted on about 333.7 lakh
hectares (lh), about half a percentage point greater than the 332.1 lh during
the corresponding period last year.While sowing in Uttar Pradesh has touched 59
lh, beyond the normal area of 57.1 lh, acreage has declined in major producing
States such as West Bengal and Odisha. Coverage of rice in the former State has
slipped by almost 5 lh to 33.2 lh, while planting in Odisha has fallen by 3 lh
to 28.1 lh – the lowest at this stage in the last five years.
“Absolute rainfall may look good but distribution and frequency
is important since sufficient water availability is important for paddy
cultivation. In Odisha and West Bengal, the distribution has been poor in many
districts,” said Trilochan Mohapatra, Director, Central Rice Research Institute
(CRRI), adding that rainfall in September will determine productivity.An El
Nino-hit South-West monsoon has resulted in 10 per deficient rainfall between
June 1 and August 24.
While precipitation in Gangetic West Bengal and Odisha are
excess and normal, respectively, distribution has been an issue, said experts.
The Indian Meteorological Department has estimated a 11 per cent deficit in
precipitation in August after a 16 per cent surplus in June and a 17 per cent
shortfall in July.Mohapatra said that transplanting was still going on and the
delay was a concern as it would affect productivity . While there is no
estimate of how much area has been sown late, he said that choosing the right
varieties at this stage was crucial to prevent a drop in yield.
“High yield will be a problem if long duration varieties are
picked. It’s too early to quantify any possible drop in production, assuming
there is one, maybe one or two per cent on account of delayed planting. Sowing
will continue till September 1,” he added.
Scenario in AP
Paddy sowings have been severely hit due to the erratic monsoon
in Andhra. Though the Godavari Delta area is relatively better off with 60-70
per cent sowings, the Krishna Delta area that depends on the Srisailam and
Nagarjunasagar Reservoirs fared very bad. “Farmers in the Krishna delta
generally grow paddy on 12 lakh acres. But they could go for sowing in only 25
per cent. That the area received only one rain during June 18 to August 18
shows the gravity of the situation,” Yerneni Nagendranath, President of Andhra
Pradesh Rytaanga Samaakhya . The situation in Telangana is no different.
BV Krishna Rau, Managing Director of Kakinada-based Pattabhi
Agro Foods, expected a clearer picture to emerge in a few weeks and did not
expect a significant production drop.
“Deficient rains in Andhra Pradesh, Telangana and parts of
Karnataka could have some impact on the crop prospects. However, it should not
be a big concern as some other States like Chhattisgarh have seen an increase
in acreage and that could make up for the shortfall,” he said. .
Global rice picture
The El Nino phenomenon is likely to affect production in
Thailand and Vietnam, which along with India accounts for almost 70 per cent of
global rice trade. “A drop in production in other major exporters will benefit
Indian exporters. However, traders are unlikely to enter into contracts with
the slide in the rupee and will wait till the rupee-dollar balance stabilises,”
said Tejinder Narang, a grains trade analyst.
(With inputs from our
Bengaluru, Hyderabad bureaus)
(This article was published
on August 24, 2015)
http://www.thehindubusinessline.com/economy/agri-business/delayed-planting-poor-rain-may-hurt-rice-yield/article7575661.ece
Deficit Rain in 190
Blocks, Contingency Plan in Making
Published: 23rd August 2015 04:33 AM
Last Updated: 23rd August 2015 04:33 AM
BHUBANESWAR:With the August
rainfall reporting a whopping 40 per cent (pc) deficit, the Odisha Government
on Saturday got down to formulating a contingency plan for agriculture sector
as close to 190 blocks are staring at damage to kharif crops.Reliable sources
said, condition in at least 39 blocks is beyond repair as the deficit rainfall
has wreaked havoc on the crops, paddy in particular.
These blocks, located in 11
districts, have received rainfall in the range of seven mm to 71 mm between
August 1 and 21. In the rest 150 blocks, the situation is very bad, but can be
salvaged at some places.With the Agriculture Department realising the gravity
of the situation, a meeting was chaired by Chief Secretary GC Pati here on
Saturday. Sources said, Chief Minister Naveen Patnaik is scheduled to hold a
video conferencing with district collectors on Tuesday to take stock of the
situation and Saturday’s meeting was a precursor to that.If the latest crop
coverage report is to be believed, paddy has been sown over 31 lakh hectare so
far against a target of 35 lakh hectare and it is still short of 2.5 lakh
hectare compared to the corresponding period of last year.
Since severe moisture stress
conditions are being experienced, the State Government is ready to advise farmers
to go in for pulses and oilseeds farming in low lands. If necessary subsidy on
seeds could be provided along with irrigation facility by use of pumpsets. In
uplands, vegetable growing may be suggested to farmers. However, in the medium
lands, the farmers can only wait and watch till the time rabi season
arrives.Since August is the most critical period for transplantation and
weeding, absence of adequate rain has hampered paddy crops and farmers in may
districts are in a state of despair.“It is a phase where farmers can neither
hope to get good crops nor can they go in for fresh cropping,” said sources.
Between August 1 and 21, Odisha has received 155.7 mm rain against the normal
of 258 mm.As many nine districts have, so far, reported over 20 pc deficit in
rainfall since June 1. In fact, the rain deficit has been on a upward spiral.
In June, the overall rainfall was 11 pc in excess. In July, it reported a 13 pc
deficit. August has been the harshest.
http://www.newindianexpress.com/states/odisha/Deficit-Rain-in-190-Blocks-Contingency-Plan-in-Making/2015/08/23/article2988800.ece
UNISAME TO
DEMAND SURVEY OF SMEs FOR FOCUSED TARGETED PROMOTION AT 9th SME FORUM
The Union of Small and Medium
Enterprises (UNISAME) in its committee meeting held at its office yesterday
urged the Small and Medium Enterprises Development Authority (SMEDA) to
recount, register and determine the micro and small to medium sized enterprises
and classify them according to size and line of trade for more focused
promotion and developmentPresident UNISAME Zulfikar Thaver said it is accepted
and agreed by all stakeholders that the SME sector is the vibrant sector,
backbone of the economy, the engine of growth and the vehicle for poverty
alleviation and best for creating employment yet the sector has not been given
the priority it deserves.The government has not taken pains to carry out a
survey and merely repeats that there are 3.2 million SMEs in Pakistan whereas
the number has increased manifolds.
Since last 15 years the same
figure of 3.2 millions is being quoted although there are a huge number of SME
farmers as well. There is need for recounting to assess the strength and
potentiality of the sector industry and location wise.The SMEs contribute to
30% of the exports and most of them are involved in value addition and they
contribute 35% to GDP and offer employment to about 40% of the labour
force.Thaver said the impediments to SME growth are lack of education, finance,
proper environment, infrastructure, logistics and these days the energy crisis
is a real issue.In order to promote, encourage, facilitate, motivate and
upgrade the SME sector UNISAME has suggested to the government to take measures
to educate the SMEs about the new technologies in production, management,
marketing, accounting & inventory control and encourage the SMEs to
modernize and make plans for balancing and replacement of their units and
arrange transfer of technology.
UNISAME has stressed the need to
facilitate the SMEs through banking, leasing,insurance as these are the pillars
for growth.The SMEs in order to progress need law and order and protection and
need to feel safe and of course the infrastructure needs to be improved as the
SME sector is dependent on logistics which encompasses transportation,
warehousing and collateral management.The need for alternate energy is being
felt due to the energy crisis and the UNISAME committee has emphasized the need
for promotion of solar energy systems in houses, offices and factories. The new
houses and factories and industrial estates must be asked to have alternate
solar systems and this must be made mandatory.The UNISAME committee urged the
government to adopt a policy of fair taxation and also give tax benefit to
innovative industries and new units.The SMEs need their own chamber of commerce
and also their own export promotion bureau.
They also need an SME specific
bank, a technical institute and an ombudsman. There is need for joint venture
and collaboration and all these requirements are included in the SME Policy
2007, which is not fully implemented.The NPO, EDB, SMEDA, PCSIR and TDAP are
all dedicated institutions and working hard for the promotion and development
of the SMEs together with the commercial banks but they all need to co-ordinate
with one another for integrated effortsThe UNISAME committee demanded that the
government should strengthen and equip the Small and Medium Enterprises
Development Authority (SMEDA) and broaden its scope to enable it to reach the
SMEs involved in manufacturing, trading and services.
The UNISAME committee authorized
Syed Sajid Naqvi its secretary general to raise the union's point of view at
the 9th SME conference on 25th August 2015 organized by Shamrock
Conferences. The committee is deeply concerned about declining exports of
textiles, rice and commodities and requested Sajid Naqvi to invite the
attention of the policy makers present at the moot to consider serious measures
for regaining the lost markets.UNISAME committee
thanked Menin Rodrigues chairman Shamrock Conferences for the opportunity to
present their demands at the scheduled forum in the presence of State Bank of
Pakistan (SBP) officials, SMEDA, Planning Commission, Commercial banks and
other stakeholders.
Rice industry to
be boosted by moves to reduce production costs -Agriculture Minister Holder
distributed
by noodls on 08/24/2015 12:20
Describing
the rice industry as the most important agricultural industry in Guyana,
Minister of Agriculture Noel Holder placed it ahead of sugar in terms of
foreign exchange earnings.He explained that more than 40,000 people directly
depend on the rice industry for their livelihood thus in terms of food
security, the sector has helped to secure Guyana's status as a food-secure
country. He spoke of government's intention to further accelerate
production/productivity, "with an emphasis on reducing cost of
production".Minister Holder noted that, over the years, rice has excelled
in its production, moving from 298,125metric tonnes (mt) in 2007 to 635,238mt
in 2014, "This represents a 113% increase in production," he said.
Notwithstanding
the increase, the minister said that there are some major challenges that that
need to addressed including, Drying and Storage; Marketing- which plays a key
role in the survival of the industry; Compliance by Millers; Improving
varieties to enhance productivity; Good Agricultural Practices; Energy
Efficient Management at Rice Mills, and Value Added Production.For the
Minister, the real story of development remains investment in the nation's
citizens. He said, the Implementation of a Rice Marketing Plan, improving
productivity, improving operational efficiency in rice mills and, the development
of value added products for which markets exist, would be pursued.
Despite
the challenges, Minister Holder indicated that a record 360, 325mt in the
spring crop of 2015 was produced whilst 326, 278mt was exported. He pledged his
Ministry's continuing support in exploring additional markets for rice.The rice
industry supports at least 10 percent of Guyana's population directly, and is
the major source of income and employment in rural areas. The industry
contributes approximately 61 percent of agricultural GDP and 21.3 percent of
export earnings. It has also been described as the main staple of the
population, with per capita consumption estimated at around 50kg.
www.noodls.com
Prices
of rice, other foodstuff rise in Asaba
Prices of rice and other foodstuff have risen in recent months
in Asaba, the Delta State capital, a survey by the News Agency of Nigeria on
Sunday has shown.The survey indicated that a 50kg bag of Royal Stallion and
Milan Gold brands of rice, which sold for N8,500 in June at the Ogbe-Ogonogo
and Abraka markets, now sell for N10,000.The price of 50kg of another brand of
rice, Mama Africa, now sells for N10,500 at the markets, as against N9,800 in
June. The price of other brands of rice also rose by about 26 percent in the
past two months.
The survey further revealed that a carton of turkey edible oil,
which was sold for N10,000 in June, now sells for N11,000, while the retail
price has now gone up to N1,200 from N1000.Some rice dealers interviewed
attributed the price increase to the strict adherence by the present
administration to the rice import quota policy, which restricts the flooding of
the country markets with foreign rice.
According to Uche Okorie, a dealer in Ogbe-Ogonogo Market,
Asaba, the sudden increase in price was due to the scarcity of foreign
exchange.Okorie said the situation had resulted in a drop in her sales, as
customers no longer bought the quantities they used to buy.Another dealer,
Chioma Enebeli, said her sales had dropped, adding that some customers now bought
half a bag of the commodity, instead a full bag.Abdulahi Mamud, a retailer at
Abraka Market, said the increase in price had affected his business.
http://businessdayonline.com/2015/08/prices-of-rice-other-foodstuff-rise-in-asaba/
APEDA India
News
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Arkansas
Farm Bureau Daily Commodity Report
A
comprehensive daily commodity market report for Arkansas agricultural
commodities with cash markets, futures and insightful analysis and commentary
from Arkansas Farm Bureau commodity analysts.
Noteworthy
benchmark price levels of interest to farmers and ranchers, as well as
long-term commodity market trends which are developing. Daily fundamental
market influences and technical factors are noted and discussed.
Soybeans
|
High
|
Low
|
|
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Cash Bids
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937
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827
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New Crop
|
927
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842
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|
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Riceland
Foods
|
|
||
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Cash Bids
|
Stuttgart:
- - -
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Pendleton:
- - -
|
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New Crop
|
Stuttgart:
- - -
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Pendleton:
- - -
|
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Futures:
|
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Soybean Comment
New crop
soybeans post new lows today as the market fell sharply on concern from turmoil
in China and weakening U.S. Economy. While the crop tours point to slightly
lower yields, these were not as low as were earlier thought and it appears the
U.S. will have ample supplies this fall. This combined with large South
American supplies will continue to pressure prices and limit gains. One saving
factor of this market is strong, domestic demand, however, if China economy
continues to weaken slow exports could leave the U.S. with ample soybeans
supplies.
Wheat
|
High
|
Low
|
|
|
Cash Bids
|
466
|
426
|
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New Crop
|
516
|
491
|
|
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Futures:
|
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Wheat Comment
Wheat prices
weakened today as weakness in outside markets continue to pull prices lower.
One positive for wheat remains the fact that prices continue to hold support
near $5 and hold onto those gains.
Grain Sorghum
|
High
|
Low
|
|
|
Cash Bids
|
377
|
334
|
|
New Crop
|
377
|
333
|
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Corn
|
High
|
Low
|
|
|
Cash Bids
|
363
|
323
|
|
New Crop
|
391
|
343
|
|
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Futures:
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Corn Comment
Corn prices
closed lower today. While the crop tour yield estimates provided some support,
yields were not off as much as originally thought. This combined with sell off
in the U.S. stock market and weakening Chinese economy will keep pressure on
prices and likely hold prices under $4 for the foreseeable future, until demand
starts to pick up.
Cotton
|
Futures:
|
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Cotton Comment
Cotton
traded on either side of unchanged today before ending mostly lower. Tightening
supplies in the U.S. are certainly supporting the market and a weaker dollar
today was also supportive. Huge world stocks, particularly in China, will limit
the upside potential. December continues to find resistance at 67 cents.
Rice
|
High
|
Low
|
|
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Long Grain Cash Bids
|
- - -
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- - -
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Long Grain New Crop
|
- - -
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- - -
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Futures:
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Rice Comment
Rice futures
traded in a wide range today before ending about a penny higher. Weekly export
sakes of only 35,000 metric tons added to the negative undertone. The market
has been attempting to consolidate after failing at the recent highs of $12.07
for September and $12.34 for November.
Cattle
|
Futures:
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Live Cattle:
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Feeders:
|
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Cattle Comment
Livestock
markets closed sharply lower today, as feeder cattle were down the limit. While
beef prices remain supportive of prices, weakness in the economy and major sell
off on the stock market has the market worried about the long term impact to
prices. With a looming increase in the dollar, exports remain a point of
concern; combine this with weakening cash prices and cattle are going to have
difficulty holding recent gains and are likely to trend lower.
Hogs
|
Futures:
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http://www.arfb.com/ag-markets-statistics/report/
A new
Registrar of Lands
A legal dispute has arisen over the
appointment of Ms Rosalie Robertson as Registrar of Lands following the sending
off on leave of the previous holder of the position, Ms Juliet Sattaur.The
dispute revolves around Section 7 (1) of the Land Registry Act Cap 5:02 which
reads as follows: “There shall be a Registrar of Lands and a Deputy Registrar
of Lands who shall be the persons for the time being holding the Offices of Registrar
of Deeds and Deputy Registrar of Deeds respectively.
” There are various views on whether
the words ‘for the time being’ require an amendment to the law to permit the
appointment of a Registrar other than the Registrar of Deeds or whether they
lose applicability on the appointment of a new Land Registrar.While legal minds
will continue to argue the points on both sides, there is an even more
important consideration. The previous PPP/C government had become notorious for
the poorest standard of governance in many sectors and particularly in relation
to appointments to senior public sector positions. There were many of these
including that of the now sacked Chairman of GuySuCo, Dr Rajendra Singh.
By virtue of the long tenure by the
PPP/C in office, the public has clamoured for a sea change in the quality of
governance and this had been fervently promised by APNU+AFC while on the
campaign trail and after entering office. It has so far not lived up to
expectations in terms of appointments to state boards. The appointments reflect
no ethnic, gender and political balance. Further, the appointments were made in
ad hoc fashion. No government official has since explicated how the coalition
engaged within itself or with the wider society in mustering these names.In
addition, questions of merit will arise along with the age-old malady in the
public sector of whether this is simply a case of jobs for the boys. Several
appointments in the public sector raise concerns about suitability and
relevance. After being out of public service in the rice sector for many years,
Mr Claude Housty was named as Chairman of the Guyana Rice Development Board at
a time when the sector faces grave jeopardy from the imminent loss of the large
lucrative oil barter market in Venezuela.
The public will over time be able to judge his
efforts although on July 27th when given the opportunity to address the
national rice conference he did not impress the gathering with his suggestion
that rice in substantial quantities can be sold to Mexico, Canada and
Brazil.Bearing all of this in mind, how did the APNU+AFC government come up
with Ms Robertson’s name? Ms Robertson may undoubtedly be qualified for
appointment to the post of Registrar of Lands but that is not the question at
this stage.
The primary issue that has dogged
the 100-day old administration is that a section of its governing coalition,
the PNCR, is aggressively asserting itself and promoting certain candidates
without any identifiable basis for this and to the exclusion of all others, including
worth civil society persons.Did the government consult the stakeholders in the
legal sector – the Guyana Bar Association and the Guyana Association of Women
Lawyers on Ms Robertson’s appointment? Did it contemplate advertising the
position?
Did it contemplate that this is
really an appointment that should properly be made via the Public Service
Commission? It is quite acceptable for ministers to appoint their own advisors,
public relations personnel and photographers. It is an entirely different
proposition for a new government pledging a departure from opaque governance to
monopolize the appointing of a person to an important public position as that
of Registrar of Lands. The public is entitled to an explanation from the
government on this appointment and on its policy towards filling such
vacancies.
Golden! Rice Defeats San Jose State
2-1 In Double-Overtime
Golden Overtime Goal From Lauren Hughes Secures Rice's First Victory
Golden Overtime Goal From Lauren Hughes Secures Rice's First Victory
Aug. 23, 2015
HOUSTON, Texas – The Rice soccer
team rallied for a late goal in regulation before claiming a dramatic 2-1
double-overtime victory over visiting San Jose State Sunday afternoon at home
in Houston.San Jose State opened the day’s scoring in 21st minute and held the
1-0 advantage late into the contest. In the game’s 81st minute, Owl true
freshman Annie Walker avoided
some defenders before serving a pass into traffic in front of the Spartan goal.
Though normally a defender for Rice, senior Jasmine Isokpunwu was forward on the play to help provide some offensive
pressure.
The veteran jumped to the head the
ball, and placed it to the back of the SJSU net for her first goal of the
season.It was a new game at 1-1, but there proved to be quite a bit of soccer
still left to play. The former conference rivals were deadlocked at the end of
regulation and after the first of what would be two overtime periods. Any
overtime goal would immediately decide the outcome.With the clock running down
again, this time with just over three minutes in the second/final overtime
period, the senior duo of Danielle Spriggs and Lauren Hughes fought
through the fatigue to go to work one last time. In the 117th minute, Spriggs
drew the full attention of the Spartan defense while bringing the ball in close
to the right post.
As the defense drew-in to contain
the Spriggs, the California native passed back to Hughes inside the keeper’s
box. From there the Owls’ career and single-season record-holder for goals
needed only one touch to fire the game-winning shot and a 2-1 final.Hughes’
goal was her first of the season and the 33rd of her collegiate career (to add
to her school record). The senior from Ottawa, Canada, led the Owls with five
shots on the day. Rice took a total of 18 shot attempts overall. Owl
goalkeeper Zoe Pochobradsky registered another sound and solid outing with five
saves.
Rice has closed out its
season-opening two-game homestand. The Owls are on the road for the team’s next
contest at state foe Texas A&M-Corpus Christi on Friday (Aug. 28). The Blue
& Gray is then back in town on Sunday (Aug. 30) for a 4 pm match against
longtime foe Sam Houston State to be played downtown at BBVA Compass Stadium,
the professional soccer home of both the Houston Dynamo & Houston Dash. The
phone number for the Rice Ticket Office is 713-348-OWLS.
http://www.conferenceusa.com/sports/w-soccer/recaps/082315aag.html
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Basmati crop in Gurdaspur, Amritsar under pest threat
The state agriculture department
has issued an advisory to farmers of the basmati crop to keep a close eye on
their plants.
Agriculture
experts inspect Basmati crop damaged by pests in Gurdaspur. (Source: Express
photo)
The
Basmati crop in Punjab is under threat from rice hispa — a pest that eats the
leaves of the plant, exposing its epidermis as a broad white mark. It has been
noticed in over a dozen villages in Gurdaspur and Amritsar.The pest thrives in
flooded fields. The monsoon and lack of efficient drainage has contributed to
this.The state agriculture department has issued an advisory to farmers of the
basmati crop to keep a close eye on their plants.Dr Amrik Singh, agriculture
development officer at Gurdaspur, said that at least 100 acres has been
affected.“Infestation varies from six to 65 per cent in the fields,” he said.
Farmers in the state have been mindlessly applying
fertilzers to their crops. This has affected the ecosystem in which the crops
grow and has kept the rice hispa’s natural predators away,” said Dr Naresh
Gulati, an agriculture development official. An adult rice hispa looks like a
small bluish-black beetle that has many short spines on its body. Its larvae is
legless creamy white which is concealed inside the leaf tissue. “If the attack
is in the nursery of the crop, the affected leaves should be cut off before the
seedling is transplanted.
On transplanted crops, farmers must spray 120 ml methyl
parathion 50 EC or 560 ml monocrotophos 36 SL or 800 ml Ekalux 25 EC or one
litre chloropyriphos in 100 liter of water,” said Dr Singh. Farmer Piara Singh,
numberdar of Magrala village, said the rain water hasn’t drained from the
fields. This year, around 7 lakh hectares is under Basmati cultivation in the
state. http://indianexpress.com/article/cities/chandigarh/basmati-crop-in-gurdaspur-amritsar-under-pest-threat/#sthash.fvE2xHD2.dpuf
Record caFe: ‘We need technologies to
mitigate impact of climate change on crop production’
Farmers will opt for alternative crops only
if they are assured that the returns from such crops are at least as
remunerative as rice, if not more. Otherwise, it is very difficult to convince
them
Baldev Singh Dhillon spoke to FE’s Sandip Das
on the challenges faced by Indian agriculture and the need for adopting new technologies
in promoting conservation agriculture.
Renowned agricultural scientist
and vice-chancellor of Punjab Agricultural University (PAU), Baldev Singh
Dhillon, has been a vocal supporter of conservation agriculture measures for
dealing with falling water table, and excessive use of pesticides and
fertilisers in northern India. Dhillon spoke to FE’s Sandip Das on the
challenges faced by Indian agriculture and the need for adopting new
technologies in promoting conservation agriculture. Excerpts:
You have seen the Green
Revolution programme closely. How do you view Indian agriculture’s progress and
the challenges it is likely to face in the coming decades?
Indian agriculture registered
remarkable progress not only in the Green Revolution era but even
thereafter.Recently, the country has become one of the biggest exporters of
foodgrains. However, we are facing a number of challenges in the sector.Over
55% of India’s population depends on this sector for livelihood (it is the
largest private enterprise), but the share of this sector is only about 14% in
the gross domestic product (GDP) of the country. The performance of other
sectors of the economy is much better compared to the farm sector.
Thus, the gap between farm and
non-farm incomes has increased over time, resulting in relatively high poverty
in the farm sector. During 2014-15, farm sector’s growth was just 0.2% compared
to 7.3% in the GDP of Indian economy.Declining water availability, shrinking
farm size, imbalance between input and output prices, costly mechanisation, and
poor agro-processing facilities leading to huge wastages are other challenges.
Then there is climate change, which affects agriculture more adversely than
other sectors. In the face of these challenges, we have to meet the food
requirement and other needs of our ever-increasing population and ensure that
farmers live as good a life as those working in other sectors.While on one hand
we need large investments to support the farm sector, on the other the
challenge is to make huge investments in non-farm sectors which have the
potential to address the unemployment and under-employment problem in rural
India.
Punjab, Haryana and Uttar Pradesh
have initiated a crop diversification programme to tackle with the problem of
rapidly-depleting groundwater table. What has been the impact?
Punjab has promoted cultivation
of basmati rice, maize, cotton and horticultural crops under the
diversification plan. There has been substantial increase in the area under
basmati, which consumes less water than parmal rice.The area under
horticultural crops has also increased. But the farmers have faced marketing
problems in the cultivation of these crops. There were fluctuating output
prices in the case of basmati rice (even delay in payments) and horticultural
crops. In maize, farmers sold the produce at a price much lower than the
minimum support price (MSP). To make the diversification programme successful,
market-related issues for alternative crops need to be addressed at the
national level, by making provision for remunerative MSP, assured procurement
and timely payments to growers. There has to be a level-playing field.
How acute is the water
availability crisis in Punjab? What steps need to be taken immediately?
The excessive drawing of groundwater
in Punjab has resulted in declining of water table at a very rapid rate
(0.1-1.0 metre a year) along with higher cost of pumping water. Punjab, in
fact, has 146 development blocks, of which 110 blocks have been categorised as
overexploited, three as critical and two as semi-critical. The most affected
areas fall in the districts of Barnala, Sangrur, Patiala, Moga, Jalandhar and
Shahid Bhagat Singh Nagar, where water tables have declined in the range of
8.2-11.9 metres in 2000 to 12.4-26.5 metres in 2013.In 2008, Punjab government
issued an ordinance which was subsequently made a law—that rice cannot be
transplanted before June 10. This year the state government extended the date
to June 15.
Due to this measure, the annual
fall in water table has been checked by about 27.5 cm, which is about 65% of
the long-term water table falling rate.Besides, breeding early maturing rice
varieties—which require less water—was put in focus by the PAU and the
university recently released varieties such as PR 121 and PR 123, which mature
in lesser number of days than the predominant varieties. These varieties mature
in 135 days compared to more than 160 days taken by the rice variety Pusa
44.The use of laser land leveller, which saves about 15% of irrigation water,
has been recommended and about 16 lakh hectares of land has been levelled in
Punjab. The technology for cultivation of direct-seeded rice has been developed
and it covered about 2.8 lakh acres in Punjab during 2014.
Its coverage is expected to increase this year.In
addition, micro-irrigation system in Punjab is being promoted but the rate of
its adoption has been slow—because of large financial requirements—as compared
to the potential of the technology. Since this technology saves up to 50% of
irrigation water, thus it needs larger subsidy.States such as Andhra Pradesh,
Odisha and Chhattisgarh are now producing substantial quantity of rice, which
they contribute to the central pool. Yet farmers in Punjab and Haryana have not
shifted to alternative, less water-intensive crops. What could be the reasons?
Farmers will opt for alternative
crops only if they are assured that their cultivation is at least as
remunerative as rice, if not more. Otherwise, it is very difficult to convince
the farmers. Remember, rice enjoys the advantage of larger subsidy support,
remunerative MSP and assured procurement. Even climate change has lesser
adverse effect on rice productivity as compared to maize and cotton.What is the
state of agricultural research in the country? What are the challenges faced by
the sector due to climate change?
India has one of the largest
agricultural research systems in the world, with the Indian Council of
Agricultural Research (ICAR) being the nodal organisation. The Agricultural
Research Service (ARS) basically comprises ICAR institutes and agricultural
universities, and also gets support from the Department of Biotechnology,
Council for Scientific and Industrial Research, Department of Science and
Technology, University Grants Commission, Bhabha Atomic Research Centre and
some traditional universities.
Although we are an agrarian
country, yet our investment in research and development in agriculture has been
rather low. To be able to meet the emerging challenges of our ever-increasing
population and competing with other countries in the world market, we need to
increase investment in agriculture research to at least 2% of GDP. It is known
that investment in agriculture yields higher returns and is more effective in
poverty alleviation than that in other areas.Climate change has become imminent
and, in the long run, it can adversely affect the productivity of crops.
Thus, it is important to focus on
development of technologies to mitigate the adverse effects of climate change
on crop production. Suitable technology needs to be developed for prediction of
extreme weather events such as excessive rainfall in a short period, frost and
hailstorm. We also have to identify crop genotypes showing tolerance to such
extremes, and work on new agronomic practices and cropping systems that can
withstand the adverse effects of the changing climate.
How is PAU contributing to
agricultural research?
We are actively engaged in
research to meet the emerging challenges in agriculture. Important
contributions (besides crop improvement) include promotion of water-saving
technologies such as direct seeded rice, usage of laser land leveller, drip
irrigation in maize, wheat, onion and chilli, and use of tensiometer which is
recommended in rice cultivation.For residue management in the crop, the Happy
Seeder developed by us incorporates rice straw in field soil and also reduces
the cost of sowing of wheat crop. Besides, the use of straw chopper, shredder
and baler has also been recommended for rice straw management. In a web-based
decision, support system has been developed by us for monitoring and management
of potato late blight. Several seed varieties in rice, wheat, maize, pulses,
garlic, onion, tomato, etc, are at various stages of development.
First
Published on August 24, 2015 12:19 am
The
Indian Express
Innovate, grow more, live better
By
Dr Martin Kropff
Published: August 23, 2015
The writer is director general of
the International Maize and Wheat Improvement Center
The development of a more productive,
modernised and profitable agricultural sector is vital to securing a bright
future for Pakistan. The Agricultural Innovation
Program (AIP) Annual Conference 2015, to be held
in Islamabad, will highlight how the latest agricultural innovations can be
introduced to farmers in Pakistan for improved productivity and economic
growth. Not only is it necessary to feed a growing population of 190 million
people, but the economy also depends on it: one-fifth of national income comes
from agriculture, which also generates 43 per cent of all jobs.
Bajwa
selected and brought back the experimental wheat line that would become
‘Mexi-Pak’, a white grain variety with the high gluten strength needed to make
chapatis and provided good resistance to rust and powdery mildew. The variety
was a success. Political support for the project saw Pakistan import 42,000
tonnes of seed from Mexico in 1966, the largest seed purchase in the history of
agriculture at that time. In 1968, Pakistan became the first country in Asia to
become self-sufficient in wheat, one of the crowning achievements of the Green
Revolution.In the mid-1980s, CIMMYT introduced conservation agriculture
technologies to Pakistan, importing a prototype seed drill from New Zealand
that allowed Pakistani farmers to practice zero-tillage, saving costs and
addressing the issue of late planting in rice-wheat cropping systems.
After 50 years, CIMMYT is still working
closely with Pakistani scientists to improve wheat and maize production systems
from seed to farm, market to policy level. Seventy-eight per cent of wheat
grown in Pakistan is the product of collaboration with CIMMYT. As well as the
support of the Pakistan Agricultural Research Council, US agencies have long
been committed partners in the country’s development.Today, it is necessary to
improve productivity in the face of high pressure on groundwater in the
Indo-Gangetic plains, help farmers adopt more sustainable and productive
agricultural practices despite higher labour and fuel costs, and support the
local seed sector to deliver improved crop varieties in partnership with strong
public research institutions.
Finally, Pakistani agriculture must develop
the capacity to not only mitigate the effects of climate change, but also to
adapt and thrive in changing circumstances.With funding from USAID and in
partnership with PARC, CIMMYT is able to build further on its decades of work
in Pakistan. Since 2013, CIMMYT has been leading the AIP to increase
productivity and incomes in the agricultural sector through the dissemination
of modern practices for cereals, horticulture and livestock. It may also be
possible to introduce durum wheat as a commercial crop.The AIP’s motto is to
“innovate, grow more, live better”. This kind of programme, bringing together
international, government, public and private actors in the pursuit of
innovation across the board, exemplifies the approach needed to continue the development
of Pakistan’s agricultural and food sector.
The AIP is a multi-institute programme
bringing national public and private sector partners together with
international research institutes such as CIMMYT, the International Center for
Agricultural Research in the Dry Areas, the International Rice Research
Institute, the International Livestock Research Institute and the World
Vegetable Center, alongside the University of California, Davis.Since 2013, the
programme has already introduced new disease-resistant wheat, heat- and
salinity-tolerant rice and bio-fortified maize varieties to Pakistan, and
introduced conservation agriculture machinery in 26 districts of
Khyber-Pakhtunkhwa and Punjab with the collaboration of 13 national public and
private sector partners.
The programme has allowed five PhD and nine
MSc students to begin study in agricultural science at American
universities.Along with the rest of South Asia, Pakistan has great potential to
grow into a highly prosperous and food-secure country by introducing modern
practices to improve farmers’ yields and livelihoods. Pakistani scientists,
government bodies and private enterprises, international research institutes
and global development partners lie at the centre of this. Funded by USAID, the
AIP is living recognition of the need to invest in agricultural innovation
through global, multi-sector partnerships.
Published in The Express Tribune, August 24th,
2015
http://tribune.com.pk/story/943377/innovate-grow-more-live-better/
India to ship 10,000 tonnes of rice bran
oil
India is expected to ship 10,000
tonne of rice bran oil this financial year after the Union Government eased
restrictions on its bulk sale, giving a boost to small rice millers, an
industry body said. Last year, the country exported about 2,000 tonnes of rice
bran oil, according Solvent Extractors' Association of India (SEA).“Lifting of
the government restriction is a great boost to the industry and will help small
rice millers across the country.
We expect to export 10,000 tonnes
of rice bran oil during this financial year," according to B. V. Mehta,
Executive Director, SEA. SEA is now looking at new export destination for
shipping of rice bran oil, which fetches a premium over other edible oils, Mr.
Mehta said. "There has been good demand from countries like Japan and
Thailand.
http://www.thehindu.com/business/agri-business/india-to-ship-10000-tonnes-of-rice-bran-oil/article7572160.ece
UPDATE 2-Bangladesh plans to
import 950,000 T wheat in year to June 2016
Sun Aug 23, 2015 4:17pm IST
By
Ruma Paul
Aug
23 (Reuters) - Bangladesh's state grains buyer plans to import 950,000 tonnes
of wheat in the year to June 2016, up from 300,000 tonnes the previous year,
seeking to secure food supplies.
"We
will seek wheat with 12.5 percent protein content to ensure quality," said
Ilahi Dad Khan, procurement director at the Directorate General of Food.The
announcement came after the Supreme Court questioned the quality of recent
Brazilian wheat imports, prompting the state buyer to seek alternative
supplies.In addition, the state buyer will procure 1.5 million tonnes of rice
locally.Bangladesh depends heavily on imports to feed its poor and keep
domestic prices stable.In 2008, record food prices led to cancellations of
wheat import deals and sparked protests in a country where nearly a third of
the population lives on less than $2 a day.
Khan
said current problems were not as serious as in 2008, or as in 2011, when
Bangladesh became a major rice importer after its local procurement drive
failed.Prices for both wheat and rice on international markets currently are at
multi-year lows.Bangladesh, the world's fourth-biggest rice producer, consumes
almost all its production. It aims to produce more than 35 million tonnes of
rice in the current year, up from nearly 34 million the previous year.Rice is
the main staple for Bangladesh's 160 million people, but wheat consumption is also
rising due to lifestyle changes. It often needs to import rice to cope with
shortages caused by floods or drought.In addition to the government, private
traders also import about 2.5 million tonnes of wheat a year to help meet local
demand of 4 million tonnes. Domestic output amounts to about 1 million tonnes.
(Reporting by Ruma Paul; Editing by Ruth Pitchford)
http://in.reuters.com/article/2015/08/23/bangladesh-wheat-idINL4N10Y06P20150823
Bangladeshi Scientists Develop New
Zinc-rich Rice
The latest breed is also nutritionally richer with 22.8 milligram
zinc content a kilogramme, over 3mg higher than what BRRI dhan62
contains.Biofortification is the process of breeding crops to increase their
nutritional values. This can be done either through conventional selective
breeding or through genetic engineering.And it's the first method through which
BRRI dhan72 has been developed.Zinc is one of the three most vital
micronutrients, deficiency of which adversely affects children's natural growth
and immune system. Proper zinc supplementation can reduce the severity of
morbidity from a number of common childhood diseases including diarrhoea and
pneumonia.Though fruits, vegetables and animal products are rich in
micronutrients, these are often not available for the poor in Bangladesh as
well as in many other Asian countries where the poor's daily diet consists
mostly of relatively much inexpensive low-zinc staple -- rice.
According to the World Health Organisation, nearly half a million
children die each year globally due to zinc deficiency.Seventeen percent of the
global population is at risk of inadequate zinc intake. The regional estimated
prevalence of inadequate zinc intake ranges from 7.5 percent in high-income
regions to 30 percent in South Asia.
Among the three rice seasons -- Aus, Aman and Boro -- in
Bangladesh, Aman contributes a big part of the country's total paddy output.It
requires less irrigation and inputs to grow rice during the rain-fed Aman
season than what it takes during the dry Boro season.Of all the varieties
developed by the BRRI, BR11 (Mukta) has so far been the most popular among Aman
rice growers since the breed's release in 1980."With the release of BRRI
dhan72, we hopefully will be able to replace BR11 gradually in many parts of
the country," BRRI Director General Jiban K Biswas told The Daily
Star.While BR11 grows in 145 days, it takes 125 days to harvest BRRI dhan72
from the day of sowing the seeds, he said.Partha S Biswas, the lead breeder of
the second zinc-rice variety, said, "We need different varieties of Aman
rice for different cropping patterns in different agro-ecological systems.
This variety is developed for the areas where Robi crops [mainly
wheat and winter vegetables] are cultivated besides Boro and Aman crops."Md
Khairul Bashar, country manager of HarvestPlus that funded the research, said,
"This variety is developed for those farmers who want better yield of rice
with higher zinc content."After seed multiplication, HarvestPlus will
start dissemination of this zinc-rich rice variety in 2016 Aman season,"
he added.HarvestPlus is a non-profit global biofortification mission launched
in 2004 by the Washington-based global agro-science coordinating body --
Consultative Group for International Agricultural Research (CGIAR).It is the
first recipient of grants from the biofortification research fund of the Bill
and Melinda Gates Foundation.Jointly coordinated by the International Center
for Tropical Agriculture and the International Food Policy Research Institute,
the HarvestPlus programme provides assistance to both Bangladesh and India for
pursuing advanced research for developing zinc-rice breeds.
Deficit Rain in 190
Blocks, Contingency Plan in Making
Published: 23rd August 2015 04:33 AM
Last Updated: 23rd August 2015 04:33 AM
BHUBANESWAR:With the August
rainfall reporting a whopping 40 per cent (pc) deficit, the Odisha Government
on Saturday got down to formulating a contingency plan for agriculture sector
as close to 190 blocks are staring at damage to kharif crops.Reliable sources
said, condition in at least 39 blocks is beyond repair as the deficit rainfall
has wreaked havoc on the crops, paddy in particular. These blocks, located in
11 districts, have received rainfall in the range of seven mm to 71 mm between
August 1 and 21. In the rest 150 blocks, the situation is very bad, but can be
salvaged at some places.
With the Agriculture Department
realising the gravity of the situation, a meeting was chaired by Chief
Secretary GC Pati here on Saturday. Sources said, Chief Minister Naveen Patnaik
is scheduled to hold a video conferencing with district collectors on Tuesday
to take stock of the situation and Saturday’s meeting was a precursor to
that.If the latest crop coverage report is to be believed, paddy has been sown
over 31 lakh hectare so far against a target of 35 lakh hectare and it is still
short of 2.5 lakh hectare compared to the corresponding period of last year.
Since severe moisture stress
conditions are being experienced, the State Government is ready to advise
farmers to go in for pulses and oilseeds farming in low lands. If necessary
subsidy on seeds could be provided along with irrigation facility by use of
pumpsets. In uplands, vegetable growing may be suggested to farmers. However,
in the medium lands, the farmers can only wait and watch till the time rabi
season arrives.
Since August is the most critical
period for transplantation and weeding, absence of adequate rain has hampered
paddy crops and farmers in may districts are in a state of despair.“It is a
phase where farmers can neither hope to get good crops nor can they go in for
fresh cropping,†said sources. Between August 1 and 21, Odisha has received
155.7 mm rain against the normal of 258 mm.As many nine districts have, so far,
reported over 20 pc deficit in rainfall since June 1. In fact, the rain deficit
has been on a upward spiral. In June, the overall rainfall was 11 pc in excess.
In July, it reported a 13 pc deficit. August has been the harshest
The New Indian Express
Wading through the rice conundrum
I have followed, with keen interest, in the last few weeks, the
unfolding drama or needless ‘altercation’ between the Nigeria Customs Service
[NCS] and members of the Nigerian Rice Millers Association [NRMA], on who
should bear responsibility for the sum of N23b in potential revenue lost last
year by the government as a result of unwholesome implementation of a government
fiscal incentive on rice imports.
This unfortunate turn of events is probably a direct consequence
of the stealthy manner in which an otherwise laudable policy initiative was
introduced in the first place.Admittedly, the observed national supply gap with
respect to this staple that qualifies to be classified as a sensitive product,
called for both short and long term measures at the time the government
introduced import quotas, at concessionary duty rates, for rice millers with
verifiable investments in local production and commitment to backward
integration.
Yes, the Presidential approval was timely, but the sequencing of
the consequential directives through circulars by the relevant Ministries,
Departments and Agencies [MDAs] was characterised by lethargy, poor
coordination, ineffective communication [lack of clarity] and, sadly, an
unpardonable resort to retrospection.It is evident from the arguments that have
suffused the print and electronic media lately that the government approved a
total of 1.3 million metric tons to be allocated to qualified rice millers as
import quotas.
The presidential approval
giving effect to this fiscal measure was supposedly issued in May, 2014, while
the Federal Ministry of Finance’s circular meant to facilitate implementation
was issued in July, 2014. It is apparent that while this circular specified the
criteria for prospective beneficiaries of reduced import duties, it was silent
on the quotas allocated to individual importers, with only a hint that imports
would be limited to the national supply gap to be determined by an
Inter-Ministerial Committee.
Alas, it took the said committee, if ever there was one, seven
[7] good months after Mr President’s approval to wake up to its
responsibilities! Nigerian bureaucracy certainly needs a jolt, if I am
permitted to digress. The circular purportedly issued by this committee, under
the authority of the then Minister of Agriculture, was, to say the least,
incredible as it allocated quotas to beneficiaries in a retroactive manner. The
issue to interrogate here is whether the earlier circular from the Federal
Ministry of Finance advised beneficiaries to tarry awhile, pending when
allocation of quotas would be finalised by the Ministry of Agriculture or the
relevant committee.If there was no such advice, which rational corporate entity
will stymie its business by refraining from taking advantage of a scheme whose
qualifying criteria it satisfied? Imagine the consequences of a seven-month
lull in the importation of rice on price in the face of the identified supply
gap and unabating rise in demand.
The concomitant rise in the evil phenomenon of smuggling [of
rice] would have exerted a heavy toll on the lean resources of the
customs administration, as knee-jerk efforts would have been made to intensify
patrol of, and surveillance over known unauthorised entry points.The phenomenon
of smuggling may be evil, but it seems Nigerian fiscal authorities are
oblivious, if not downright ignorant, of an equally debilitating phenomenon of trade
diversion. Trade diversion occurs when unfriendly trade policies in a country
constrain importers to use the port facilities of its contiguous [neighbouring]
countries whose policies are relatively friendlier.
Therefore, if the current posture of forcing importers to pay up
disputed duties is not moderated through fair hearing, the biggest beneficiary
may be the Republic of Benin, whose Cotonou port offers a veritable alternative
for imports destined for Nigeria. This in itself constitutes double jeopardy
for the country as duty [ revenue] is not only lost as a result of the diverted
trade; smuggling, with all its attendant security implications, will be hard to
fight, talk less of obliterating it. The way out of this conundrum will be
addressed shortly. It however suffices to add here that the counterpoise to
trade diversion is trade creation.Another issue that calls for critical
interrogation relates to the quality of policy formulation and implementation
issuing forth from the bureaucracy.
The loud silence of an important policy document on transition
arrangements that will facilitate seamless operation of a dual duty regime for
a product of uniform classification and valuation is symptomatic of sub-optimal
performance; a palpable deficit in executive capacity; negligence on the part
of supervisors and an egregious lack of rigour in policy formulation.
Turning our attention to the rather tepid defence of its recent
bellicose posture, the NCS, in an advertorial in the Daily Trust of 1st August, 2015, claimed its action of
sealing up the warehouses of the ‘defaulting’ importers was taken after several
warnings and ultimatum were ignored. It also averred that although it was aware
of the litigation instituted by one of the affected importers, it relied on the
powers conferred on it by the relevant provisions of Customs & Excise
Management Act [CEMA]. All this may be true to some extent, but the NCS must
come clean on whether or not it has been served with any restraining court
order[s], yet to be vacated by a superior court. This is instructive as the
mantra of change being heralded by the present political dispensation is partly
predicated on the rule of law, as a guiding principle which does not permit
impunity, talk less of celebrating it.
A corollary to the legal constraint faced by the NCS is the
well-known and acceptable practice of hedging against revenue loss through Bank
Guarantees [BGs] issued by importers’ banks in instances of disputes on
amounts/rates payable. In other words, when a customs administration is cut
between one of the pillars of trade facilitation that requires expeditious
clearing of cargo and securing the maximum duty payable on the said cargo, BGs
come in handy. The NCS must tell Nigerians if it adopted this win-win approach
when it entertained doubts about the intendments of the government circular on
the strength of which it allowed rice to be cleared at 30% duty in the second
half of 2014. If it did, the question must be asked as to whether it has lost
confidence in the issuing banks. If it did not, then the NCS leadership
would have unwittingly rendered itself incapable of protecting government
revenue, thereby constituting itself into a revenue risk.
I dare add that if this monumental negligence is the case, one
can safely conclude that the present holier-than-thou posture of NCS is to
cover up for this negligence or, worse still, to impress the new
administration.At this juncture, a critical review of the whole policy
initiative will be undertaken to provide a basis for the recommendations that
will form the concluding part of this piece. In the first place, it will be
interesting to know the objective criteria employed by the Inter-Ministerial
Committee to identify 26 companies as those qualified to benefit from the initiative.
Furthermore, in ranking the 26 beneficiaries for the purpose of quota
allocations, did the committee consider capacity; employment generation;
Corporate Social Responsibility [CSR]; number of out-growers supported;
experience, among others? Relatedly, were all the beneficiaries genuine
investors or did merchants benefitted, in the form of political patronage?
If the review must be holistic, we must also take a look at the
powers of Mr President to grant import duty waivers and concessions. The CEMA
provision that empowers the president to grant duty waivers and concessions is
not without a caveat as it makes the recommendation of the Tariff Review Board
a condition precedent to the president’s power to vary duties. It is an open
secret that the exercise of this power by Nigerian leaders since the advent of
the fourth republic has hardly been in consonance with the said caveat.This
review will be incomplete if we fail to examine the sustainability of this
policy initiative.
In doing this, the structure of the quota spread over the
anticipated four- year period must be programmed to progressively reduce
imports on an annual basis. This implies that local production must rise
proportionately, year-on-year, to address the supply gap, necessarily programmed
to decline on an annual basis. In fact, strategic positioning will require
Nigeria to be competitive enough by the end of the programme to venture into
the export of rice. Thus, the ultimate goal should be the achievement of
national competitiveness, and not just national sufficiency in the consumption
of rice. All this calls for an understanding of the supply and demand dynamics
of both domestic and international rice markets by the top echelons of the
relevant MDAs.In view of the salient issues raised in this piece, some
ineluctable conclusions and recommendations come to the fore.
First, if the identified ‘excess imports’ constitutes a glut
likely to depress prices to the detriment of both importers and domestic
producers; such should be deducted from subsequent annual quota allocations.
Second, the bureaucrats responsible for the lethargy that resulted in the loss
of potential revenue estimated at N23b should face disciplinary action in line
with the extant civil service rules as the blame is squarely located on the
bureaucracy and not on the hapless investors being harangued by the NCS.
Thirdly, and relatedly, the investors that demonstrated good
corporate citizenship by stopping importation when they realised they had
inadvertently exceeded their retroactively allocated quotas, may be rewarded by
a mark-up in subsequent quota allocations.Fourthly, the point must be made that
the NCS has not satisfactorily established a case of duty evasion against
the rice millers in question as it wilfully cleared their goods
without securing government revenue in anticipation of any [un]foreseen
disputes.
The customs administration should therefore be directed to
unseal the warehouses of these millers if its action must not be construed as
officially-sanctioned extortionist drive. Fifthly, in the unlikely event that
government revenue has been secured, the NCS should recover the said revenues
upon maturity of the relevant financial instruments and/or after final
determination of the cases before the courts. Finally, a comprehensive review
of the programme should be carried out to rid the qualifying criteria of
discretionary considerations and align it with the yet-to-be unfolded strategic
economic objectives of the new administration.
Mr. Shettima is an Economist; a Trade Policy Analyst; a retired
Deputy Director of CBN and an APC Chieftain.
http://naija247news.com/2015/08/wading-through-the-rice-conundrum/
The position of the Central Bank of
Nigeria
CENTRAL Bank of Nigeria (CBN) Governor Godwin Emefiele disagreed
with the OPS members’ belief that the apex bank took a position without a
proper appraisal of the domestic capacity for the production of some of the
items on the list.Emefiele said: “My personal as well as the bank’s
institutional analyses of the situation compelled us to believe that we needed
to aggressively begin the process of feeding ourselves by ourselves and
producing much of what we need in this country.“The huge amounts of money the
country spends on importing things we can produce locally have become a
significant drag on our FOREX Reserves.
Most of you are aware of the often-quoted number of N1.3 trillion,
which is what we spend on the average, importing rice, fish, sugar and wheat
every year.”Explaining his personal frustration over the development, the bank
chief queried why the country should be importing rice when the substantial part
of paddy rice – with competitive quality – produced locally are being wasted
and ignored.To him, the importers has the option of going into locally
production of rice by taking the advantage of the vast expanse of arable land,
instead of taking the easy route of importing rice.
The CBN further alleged non-remittance of FOREX earnings by
importers, who he accused of retaining such in foreign bank accounts, thereby
putting pressure on FOREX demands. Emefiele argued that the exclusion
of the 41 items was necessary to sustain the stability of the FOREX market,
ensure the efficient utilisation of foreign exchange and the derivation of
optimum benefit from imported goods and services.He added that the
implementation of the policy will help to conserve foreign reserves as well as
facilitate the resuscitation of domestic industries and improve employment
generation. Besides, the apex bank chief said the items have not banned,
stressing that any importers wishing to continuously import any of the
items on the list could continue to do so but using their own funds without any
recourse to the FOREEX market. CBN’s Director of Monetary Policy
Department Moses Tule said the nation’s FOREX reserves cannot be depleted
without replacement and still remain what it used to be, hence the drastic
measures to curtail unhealthy demand.
Dismissing suggestions that the CBN ought to have dialogued with
stakeholders before embarking on policy changes, Tule said no central bank in
the world can do that as it will stoke incontrollable pressure and
speculations. Speaking on the exigency of the policy, he said that it was
not just in response to the pressure on the naira, but as an opportunity to
change the economy’s structure, resuscitate local manufacturing and expand job
creation opportunities. According to him, the items captured on the list
were arrived at after thorough and exhaustive discussions at the highest policy
making body of the bank, with the strategic national interest and backed by
verifiable data.
Nigeria depended on imported rice for too long’
By
Amina Alhassan & Prisca Ekokuje-Emadu | Publish Date: Aug 21 2015 11:20PM |
Updated Date: Aug 22 2015 1:38AM
Rotimi Williams
Rotimi Williams: I simply ask myself the question ‘if not me, then who?’ The primary problem in Nigeria today is that we wait for others to do things for us and this has to stop. We need to learn to take the initiative. I would like to view this as a ‘Revolution of the Mind’ rather than an agricultural revolution. So, I began with the farm out of Poverty campaign.
DT: What are the potentials for rice farming in Nigeria?
Williams: The potential for rice farming in Nigeria is enormous, but we have become lazy and dependent on imported rice for far too long. The former Minister for Agriculture, Dr Akinwunmi Adesina did a remarkable job in getting agriculture back on track, but most importantly, he led the Rice Revolution. This in my view is only the beginning and the in-coming Minister for Agriculture must follow the line. For example, Dr Adesina ensured that the 2014-2015 rice allocation was given to both rice producers and millers to ensure continued investment in the sector through backward integration. This allowed farmers to fund their activities without depending on bank funding. The minute he left office at the end of his term, another allocation was immediately drafted, which totally excluded producers and favoured only millers. Who then produces the paddy rice for these millers?
In terms of actual rice production, Dangote remains the largest landowner, with 100,000 hectares for rice production, while my company, Kereksuk has 50, 000 hectares, the second largest for rice production in Nigeria. Both farms are not running at full optimisation and even at full optimisation, both companies will produce at best 1.3 million tonnes of paddy. Assuming we are able to achieve 9 tonnes per hectare annually, this translates to approximately 810, 000 tonnes of milled rice, assuming we recover 60 percent of rice after milling. According to figures from the Federal Ministry of Agriculture, the annual demand for rice in Nigeria is approximately 5,000,000 metric tonnes (mt) deducting what both farms will produce at full optimisation will still leave an enormous gap of 4, 190, 000mt.
DT: In what ways will CBN’s decision on the ban of importers from accessing Forex affect rice processing in Nigeria?
Williams: From the perspective of a local rice farmer, the decision by the CBN will certainly encourage investment and participation in the rice sector, but not as easily as CBN suggests, someone still needs to fund this sector. The issues of insufficient rice production in Nigeria cannot simply be narrowed down to rice importation, but a failure to fully understand the rice value chain and address the issues that affect the value chain.
If anything, importation itself
is a function of our inability as a nation to tackle the issues affecting local
rice production and rice traders have simply taken advantage. One of the most
prevailing issues with rice production, which till date remains a problem, is that
of funding. Our local banks are happier to fund the processing aspect of rice
production, but not the actual farming and if we rely on the contribution from
the subsistence farmers, there is the issue of quality, quantity as a result of
insufficient inputs and the know-how.
Another direct result of the CBN ban on accessing Forex is increased smuggling activities from neighbouring countries. The ban on accessing Forex and 70 percent duty and levy on importers makes Benin Republic and Cameroun a more attractive trading hub for cheaply imported rice and they simply truck it down to Nigerian markets. I thought we had learnt our lessons from 2013, but clearly not, the Nigerian government is going to lose a substantial amount of their revenue to these countries. So, if the CBN is willing to address the issue of funding for the entire value chain, and not just processing, then by all means, ban importation of rice.
However, if this is not going to
be the case, I will suggest that the CBN, in consultation with the relevant
ministries, come together and reach a common consensus on how to progress, as I
am aware that the Federal Ministry of Agriculture, Ministry of Trade and
Investment, and Ministry of Finance in 2014 agreed on an import quota system
for local rice stakeholders, which phases out in two years.
DT: Why is our locally produced rice more expensive?
Williams: There are too many factors affecting the price of our locally produced rice, but I will mention a few that I feel needed to be addressed with urgency. I will first touch on the quality of our seeds, which I think are playing catch-up with leading rice-producing countries, making our produce less competitive. The resulting yields from these seeds means that the cost at which millers purchase paddy is high with varying quality and subsequently, the rice recovered after milling is below the global average of 62 percent.The land preparation process and inputs for rice farming is a lot more demanding than most crops and because majority of the rice paddy available for sale to millers are grown by subsistence farmers, it is obvious that yields will be a lot less in comparison to the likes of Thailand and India, that use full mechanisation process for land preparation and all inputs, that is, fertiliser and high-yielding seeds.
The next point is funding. Banks in Nigeria rather take a risk on funding machinery, rather than the production of the raw material, rice. This coupled with the fact that cost of funds are in double digits, most farmers have no access to such funds and those that have access struggle to pay up and this is reflected in the price of rice. Given the high cost associated with the actual production of paddy, there is no subsidisation on the cost of paddy to millers, as we see in Thailand, thus, this cost is passed on to the final consumer.Another major issue is infrastructural deficit such as access roads, which increases transportation cost and lastly, but most prevailing, power supply. Inadequate power supply means that the rice millers have to run on diesel-powered generators.
Given these challenges faced by rice producers, we now have the issue of cheaply imported and smuggled rice in the market. With uncontrolled influx of cheap imported rice, the locally produced ones become less attractive for consumers.DT: What advice would you give the government to enhance the growth of rice farming and processing in Nigeria?
Williams: Firstly, take time to understand the entire rice value chain and understand how each section is funded, then create a special fund, with strict compliance and monitoring. I believe that such fund should focus more on large-scale farms as they are better organised to utilise such funds in area of technological know-how and production and easier to monitor.Secondly, map out the rice processing states and regions for better organisation to aid input distribution and economies of scale. Such arrangements will make it easier for both potential local and foreign investors to identify their areas of investment.
The government needs to have a better understanding of who is doing what in the rice industry and verify all claims, as we have had issues in past with some big corporate organisations claiming to be pioneers, but with no products to show.
As a matter of fact, during the
tenure of Dr Adesina, the Federal Ministry of Agriculture found that they were
bagging imported rice as local rice. Such an exercise will enable us better
understand our position and put policies and measures in place to promote the
industry.Lastly, on the issue of smuggling, I see two solutions. First, an
outright ban on rice will go a long way in ensuring that rice brought into the
country is limited and for those that are successful, it may be at an
unattractive cost. Secondly, drop price of locally produced rice below
imported, but this can only be achieved if the other issues are resolved.
Basmati crop in Gurdaspur, Amritsar under pest threat
The state agriculture department
has issued an advisory to farmers of the basmati crop to keep a close eye on
their plants.
The
Basmati crop in Punjab is under threat from rice hispa — a pest that eats the
leaves of the plant, exposing its epidermis as a broad white mark. It has been
noticed in over a dozen villages in Gurdaspur and Amritsar.The pest thrives in
flooded fields. The monsoon and lack of efficient drainage has contributed to
this.The state agriculture department has issued an advisory to farmers of the
basmati crop to keep a close eye on their plants.Dr Amrik Singh, agriculture
development officer at Gurdaspur, said that at least 100 acres has been
affected.“Infestation varies from six to 65 per cent in the fields,” he said.
http://indianexpress.com/article/cities/chandigarh/basmati-crop-in-gurdaspur-amritsar-under-pest-threat/#sthash.vWHilJap.dpuf
Mekong in need of more infrastructure
|
As of 2014, the delta
produced 55 per cent of paddy, 70 per cent of fruit, and 69 per cent of
seafood of the country. It contributed 90 per cent of exported rice and 60
per cent of exported seafood. — File Photo
|
CAN THO (VNS) — The Cuu Long
(Mekong) Delta must plan for future economic growth by investing more in
infrastructure, Deputy Prime Minister Vu Van Ninh has said.Speaking at a
conference on Friday in Can Tho City, Ninh said that officials had set the
annual GDP growth target at 10.5 per cent between 2016 and 2020.The annual per
capita GDP of the Delta is expected to be US$4,400 and export value over US$10
billion in the same period.In recent year, the Mekong Delta has contributed 16
per cent of the nation's GDP.
Last year, the delta exported
US$12.3 billion, equal to 8.2 per cent of the country's export turnover, a
growth of 14.7 per cent annually. The rate of households living under the
poverty line fell to 5.7 per cent in 2014 from 7.4 percent in 2013. It is
expected that the rate will be 4.5 per cent this year.Transport infrastructure
projects had received funds in recent years, but not enough money was spent on
education, healthcare, and cultural systems. Ninh said this had prevented the
sustainable development of the region.Ninh urged localities to seek funds
through the private sector to fund infrastructure development. A cooperative
model for agricultural production was also needed, he said. — VNS
Monsoon in a lull phase over North-West
India
VINSON KURIAN
THIRUVANANTHAPURAM, AUGUST
24:
Western end of monsoon trough,
the main meteorological feature that sets up rainfall over North India, has
shifted close to the foothills of the Himalayas, signalling a weak
monsoon.Rains will be confined to around these regions and also parts of East
India and the East Coast until the trough shifts back to its normal southerly
alignment.It can happen only with formation of a low-pressure area in the Bay
of Bengal.
Preparatory ‘low’
A preparatory cyclonic
circulation has set up a perch over the region, an India Met Department update
said on Monday.It expects a ‘low’ to pop up here over the next two days, but at
least one international model suspects that it may not show up until at least
September 3.The European Centre for Medium-Range Weather Forecasts sees the
‘low’ being delayed well past the month end.The US National Centres for
Environmental Prediction seemed to agree with India Met and projects the ‘low’
weaving in along a westerly and north-westerly track within East India.
Deficit at new high
The strong north-westerly flows
from the opposite side could force it to weaken and trace back its track
towards the Bay.This means that Central and North-West India would continue to
undergo a dry spell as will the larger South Peninsula. On Monday, the overall
rain deficit for the country as a whole went up a notch to 11 per cent.With no
significant rain forecast during the rest of August, normally the second
rainiest after July, the deficit could soon grow past the 12 per cent-mark set
by India Met for entire season.Monsoon starts withdrawing from Rajasthan from
September 1 to begin a month-long retreat before it signs out over southwest
peninsular by September 30.
(This article was published
on August 24, 2015)
Delta Agriculture on the Move
Saturday,
August 22, 2015
PORTAGEVILLE, MO. -- Staying current with the rapid movement of
agriculture can be a chore.The 54th annual Fisher Delta Research Center Field
Day, set for Wednesday, Sept. 2, will look to help farmers wade through those
changes with discussions on several agricultural topics.Rice, cotton, corn and
soybeans will also be discussed during the Field Day. Tours run from 8:30 a.m.
to 1:10 p.m."We have a fabulous team and a great group of
researchers," Director Trent Haggard said.
"During this Field Day, you will get to see the highlights of
their research, which covers the newest and hottest topics in
agriculture."While the Delta Research Center does share some similarities
to other regions of Missouri, the land more closely resembles western
Tennessee, eastern Arkansas and western Mississippi. The theme for the 2015
Field Day -- "Delta Agriculture on the Move" -- pertains to the
entire Delta."Our research always relates to the entire Delta
region," Haggard said. "The Delta and Missouri boot heel have
extremely prolific soils. It's a hyper-productive area."Corn, beans, rice,
cotton, wheat and milo can all be found in the Delta. FDRC's Field Day will
take a look at most of them.Gene Stevens, plant sciences extension associate
professor, will present on impacting yield through variable rate seed,
fertilizer and irrigation regimes. Stevens will also have a second presentation
on using a smartphone app to manage your irrigation needs.
Both presentations will be
during the corn and pollinator tour.Moneen Jones and Bob Walters will also
present on new initiatives to benefit the overall health of bee colonies, as
well as the many crops that bees pollinate.Matt Rhine, research associate, and
David Dunn, soil and tissue lab associate, will both speak on the impact of rice."The
rice tour will highlight the University of Missouri rice variety trials,
research on chalkiness in rice and proper potash management," Haggard
said.Grover Shannon, professor of plant sciences, and Andrew Scaboo, senior
research scientist, will showcase upcoming soybean releases to enhance Delta
producers' productivity and profitability.
"At this year's Field Day, we are sharing our work on
variable rate irrigation, stewardship of fertilizer in several crops and
assisting the local bee population," Haggard said. "That work is just
a small sample of ways our research continue to enhance our natural
resources."The FDRC Field Day will also include three presentations on
cotton and weed science. From variety trials to new weed technologies, numerous
topics will be covered."The cotton and weed tour will highlight the newest
varieties for cotton, along with the new weed technology available to maximize
cotton revenue and minimize weed drag," Haggard said.The Fisher Delta
Research Center is located in Portageville, Mo. For more information, call
573-379-5431 or emailHaggardT@missouri.edu. You can also visit their website at http://delta.cafnr.org/.
National Rice Month Spotlight:
Rice Aisle Impact
First in a series of three articles this week highlighting upcoming
USA Rice National Rice Month Promotions
NRM Spotlight
Sending the message about National Rice Month to shoppers
everywhere
ARLINGTON, VA - This September marks the 25th Anniversary of
National Rice Month, a time to celebrate the harvest of this small, but mighty
grain, and to remind shoppers to Think Rice while at the grocery store. This year, USA Rice is conducting customized
promotions with supermarket registered dietitians (SRDs) at eight retail
chains, including: Giant, HEB, Hy-Vee, Kroger, Rouses, ShopRite, Stop &
Shop, and Weis Markets."This past spring, we conducted promotions with
dietitians at two retail chains that generated nearly 38 million shopper impressions
- so our messages were well amplified," said Paul Galvani, USA Rice Retail
Subcommittee chairman. "Building on
that success, the retailers we are partnering with next month cover almost half
of all U.S. grocery shoppers."
Throughout the month, USA Rice's SRD partners will promote National
Rice Month and U.S.-grown rice through various supermarket communication
channels, such as: in-store radio ads,
recipe demonstrations, newsletters, store magazines, circulars, store tours,
nutrition classes, and more. "We
have some really unique promotions planned including U.S. rice-themed health
and wellness text messages that H-E-B dietitians will send to more than 80,000
shoppers," said Galvani. "And
Kroger dietitians are hosting an incentive contest to encourage employees to
cook with U.S. rice and share their photos and nutrition tips." Galvani
also says that during National Rice Month several USA Rice Domestic Promotion
initiatives dovetail to pack a powerful punch.
NRM Spotlight
"The SRDs have received two recipe cards featuring USA Rice
recipes, one of which, 'Brown Rice with
Sizzling Chicken and Vegetables' is a result of our partnership with USDA's
MyPlate program, and the other, 'Brown and Wild Rice Tropical Salad' is from a
recipe contest USA Rice ran last year," he said. "USA Rice also distributed the refreshed
SRD toolkit to a network of dietitians at 34 retailers nationwide."Again
this year, USA Rice is teaming up with Advanced Fresh Concepts, the largest supermarket
sushi distributor in the United States, to conduct an NRM promotion in grocery
stores and military commissaries. More
than 2,000 stores across the country will feature sushi display case signage
and 'Rice Grown in the USA' stickers on sushi containers. Last year, sushi sales increased 9 percent
during the promotion. Strongly supported by American rice farmers and millers,
National Rice Month has become a well-known national program used to educate
consumers about the benefits of rice grown in the USA. Next up will be a look at foodservice
programs for September.
Contact: Katie Maher (703) 236-1453
2015-16 Miss Arkansas Rice
Announced
Miss Arkansas Rice
Rice
royalty (from left to right): Benton Harvey, Lynnsey Bowling, and Emma Williams
BRINKLEY, AR -- Woodruff County 16-year old Lynnsey Bowling was
named Miss Arkansas Rice at the state contest last Saturday. She is the daughter of Roger and Carrie
Bowling of McCrory. The first and second runner-ups were, Emma Williams of White
County and Benton Harvey of Lee County, respectively.
Contestants were judged on rice promotion, rice cooking skills, and
knowledge of the industry. Representatives from eleven counties participated in
the contest -- which has been held for 54 years. The other contestants were Delia Barrett of
Arkansas County; Callie Wells of Chicot County; Ragen Hodges of Craighead
County; Madi Driver of Jackson County; Tristan Bennett of Lonoke County;
Destiny Swindle of Monroe County; Sara Toll of Prairie County and Haven
McElhanon of St. Francis County.
Contest judges were Keith Cleek, Family and Consumer Science,
Helena; Jennifer James, Chairman, USA Rice Sustainability Committee, Newport;
and Mollie Dykes, Arkansas Farm Bureau Federation, Little Rock.
The goal of the Miss Arkansas Rice program is to encourage youth
interest in rice promotion and to publicize the importance of the Arkansas rice
industry to the state's economy. Prizes
for this year's contest were: Miss
Arkansas Rice $1,000, first runner-up $600 and second runner-up $400. Each contestant that competed in the state
contest received $100.
The Arkansas Rice Council sponsors the annual contest in
cooperation with the Arkansas Farm Bureau and the Arkansas Cooperative
Extension Service.
Contact: Chuck Wilson (870) 673-7541
Crop Progress: 2015 Crop 94 Percent Headed
|
WASHINGTON, DC -- Ninety-four percent of the
nation's 2015 rice acreage is headed, according to today's U.S. Department of
Agriculture's Crop Progress Report.
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CME
Group/Closing Rough Rice Futures
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China
produces less early rice in 2015
Aug 22,2015
BEIJING, Aug. 21 (Xinhua) -- China produced slightly less rice
in the first harvest period of the year compared to 2014 due to a shrinking
planting area, but the yield per hectare increased, official data showed on
Friday.The country produced 33.69 million tonnes of "early rice,"
that planted in spring and harvested in early summer. This was a decrease of
320,000 tonnes, or 0.9 percent from a year earlier, the National Bureau of
Statistics (NBS) said.China's early rice planting area for this year stood at
5.72 million hectares, 1.4 percent less than last year, with yield per hectare
rising 0.4 percent to 5.89 tonnes.
Senior NBS statistician Hou Rui attributed the increase in yield
to favorable weather and local authorities' support to farmers in seeds, pest
control and other fields.Early rice is mainly planted in eight central and
southern provincial regions: Zhejiang, Anhui, Fujian, Jiangxi, Hubei, Hunan,
Guangdong and Guangxi.Rice is a staple food in China, and its total grain
output consists of three parts -- early rice, summer grain and autumn
production. Autumn grain crops, which include corn and middle- and late-season
rice, account for the bulk of the grain production.
http://www.shanghaidaily.com/article/article_xinhua.aspx?id=299094
Area under kharif crops rises just 1%
till Aug 21
Areas under
various summer-sown crops were just 1% higher than a year before until Friday,
almost bridging a 63% year-on-year lead recorded up to July 17, according to
the latest agriculture ministry data.
Areas under various summer-sown crops were just 1% higher than a
year before until Friday, almost bridging a 63% year-on-year lead recorded up
to July 17, according to the latest agriculture ministry data. The coverage of
oilseeds recorded a fall — albeit marginal — for the first time this season,
having risen by 1.8% until August 14 from a year earlier.This is partly due to
the fact that after initial dry spells in 2014, farmers ramped up sowing
activity significantly from mid-July due to a pick-up in monsoon showers.
The seasonal rainfall so far has dropped from the benchmark
long-period average (LPA) by 9%, having worsened from a 5% deficit recorded by
the end of July. The slowdown in the intensity of monsoon rains, particularly
since early July, has resulted in the country’s water reserves staying lower
than a year earlier for a third straight week through August 20.In a research
report this week, Crisil said four states (Bihar, Karnataka, Maharashtra and
Uttar Pradesh) and five crops (jowar, soyabean, tur, maize and cotton) are
likely to be hit the hardest in case the country receives deficient monsoon
rains for a second straight year in 2015, as has been forecast by the India
Meteorological Department (IMD).
The four states that are feared to suffer the most this season
make up for 34% of the country’s grain output, while jowar, soyabean, tur and
maize account for 26% of the total grain and oilseed production. Even a state
like Punjab, where almost all farm land is irrigated, is facing pressure after
a huge deficit in rainfall last year.The government has maintained that it is
taking a series of steps to contain any damaging impact of erratic weather —
the latest being the santion of an additional Rs 300 crore earlier this month
towards various subsidies to save crops in drought-prone areas.The area under
paddy — the most important summer-sown crop — rose just 0.5% until Friday from
a year earlier. Up to August 14, the paddy coverage was as high as 4.3% from a
year earlier. Moreover, the paddy crop has been severaly damaged due to floods
in many parts of the biggest producing state of West Bengal.
Areas under pulses, coarse cereals and cane were up 10.1%, 3.3%
and 3.5%, respectively, until August 21 from a year earlier. Cotton, however,
has witnessed a 7.2% drop in acreage.The IMD this month retained its earlier
forecast of a deficient monsoon season for 2015, with rainfall at 88% of the
LPA. It predicted rainfall to be 84% of the benchmark average in the second
half of the June-September season, compared with the actual showers of 95% of
the LPA in the first two months of the season.Not just the quantum, even the
geographical spread of monsoon doesn’t seem to be good. According to the IMD,
only 20 of the country’s 36 weather sub-divisions have witnessed normal showers
so far. As many as 13 sub-divisions have received deficient rainfall, while 3
have seen excess shower.
First Published on August 22, 2015 12:21 am
Japan's
'Sacred' Rice Farmers Brace for Pacific Trade Deal's Death Sentence
Rice is one of the five sacred areas of Japanese agriculture
(with pork and beef, wheat, barley and sugarcane). To many, especially those
living in rural areas, it remains the primary ingredient of the Japanese
identity. As one farmer here said, “without rice, there is no Japan; the
culture is a rice culture, it is the most basic element.”Japan’s rice farmers
have long been the backbone of the
ruling Liberal Democratic Party. But lately, as their numbers dwindle along
with a declining population and demand for rice, this key cultural constituency
seems to have lost the strength it once had to demand the government’s support.
There are now around two million rice farmers in
Japan, down from four million in 1990 and as many as 12 million in 1960. Some
farm part-time, while for others it’s their entire livelihood and passion.Japanese
negotiators in Maui, who only a few months ago seemed intent on
protecting rice growers by maintaining current import quotas, appear to be
bending to American pressure in exchange for allowing more Japanese autos into
the United States. The tit for tat of trade negotiations, along with the
geopolitics of countering China, now threatens this ancient way of life.I
recently spent part of the summer doing fieldwork in Japan and discussing this
issue with rice farmers and others in the agriculture industry to learn how the
TPP will affect them.“I’m a simple man. I love farming and just want to farm,”
a rice grower in Toyama prefecture told me. “Foreign rice is a problem. I’m
worried about the TPP and the future of these fields.”
Lifting limits on rice imports
The TPP includes 11 nations (Australia, Brunei, Chile,
Malaysia, Mexico, New Zealand, Peru, Singapore, Vietnam and Japan) with the
United States. The agreement has a goal of eliminating thousands of current
tariffs that exist among these countries and to serve as a template for future
trade agreements in the region.Currently rice farmers are shielded by Japan’s
limit on rice imports. The US is pushing Japan to increase its
duty-free imports of American rice and related products from 10,000 tons a year
to 215,000 tons. The US also wants Japan to open up its lands to foreign
investment.
Per-capita rice consumption in Japan has declined 15 percent
over the past two decades, according to the University of Arkansas. Back in
April, Japan’s agriculture minister, Yoshimasa Hayashi, cited this declining
consumption in arguing the country must hold the line on rice imports to
protect the farmers.But that firm stance seems to have softened, though
the details remain
secret, and that’s bad news for Japan’s rice farmers.
The decline of nokyo
Most of these farmers live a country lifestyle, in a region
naturally suited to rice growing because the rice paddies here get water from
the melting mountain snow. Farmers in these small villages hundreds of
kilometers from Tokyo on the other side of the Japanese Alps said they are most
worried about the impact of the TPP on their ability to compete with foreign
rice and foreign ownership of agricultural land.Rice is grown in small plots
(less than an acre). Currently, it is difficult for outside companies to own
land because of legal measures. The TPP would allow for foreign land ownership
as a form of investment in Japan’s rice market.
Past trade agreements have already led to a decline in Japanese
agricultural cooperatives, known as nokyo, they said, because
competition from foreign rice has made farming more difficult. Other reasons
for the decline include the fact that fewer young people are taking on these
family farms (Japanese farmers are on average in their 70s).A young female
soybean farmer in Joge, outside of Hiroshima, reminisced about a time when
active farms and their bright shades of green marked the neighborhood.“One by
one they stopped farming, the farms are gone,” she said, and now the land has
transformed to weeds.This has meant declining influence in the latest trade
round. Although the national agriculture union has staged protests, the farmers
I spoke with noted the inability of this and other such groups to help and
protect farmers.
TPP and the US pivot
The rice issue is one of the stickiest wickets that negotiators
have had to deal with as they try to seal a deal. Getting an agreement rests
largely upon the decisions made between the US and Japan, by far the biggest
economies in the deal whose shared trade is seen as a building block of the
partnership.And at the moment, the plight of the rice farmers is being
overshadowed by much bigger geopolitical issues that are dominating the trade
negotiations. Most notably, the Obama administration views the TPP as a key
element in its “pivot” or “rebalancing” toward Asia as it seeks to counter China. And
by Asia, in terms of partners, it really means Japan, because of the strong US
Japan alliance (or nichibei, in Japanese) dating from
the end of WWII.
A report prepared by the Congressional Research Service on
key TPP negotiation issues notes the US presence in Asia has declined, while
America remains “distracted” by the wars in Iraq and Afghanistan. Thus, the TPP
is increasingly about the US-China rivalry, and the concerns of rice farmers
and other citizens are unlikely to derail it.
End of a way of life
In some respects, the TPP is an attempt to get around the recent
failure of developed and developing countries to achieve meaningful results at
the World Trade Organization Doha round of negotiations that began in 2001 but
collapsed in in 2008.If negotiations are successful this week in Hawaii, Japan
will not only open up its rice market to more US competition but will also
allow for foreign investment and corporate land ownership through its
investment protection measure. Foreign investment and corporate ownership mean
larger plots of land and high mechanization. Small farms simply can’t compete
with this intensive large-scale production.
Saito (who like many Japanese goes only by his last name) fears
an influx of foreign rice and landowners and says the TPP and the changes it
brings will crush a way of life, and young farmers like him will be unable to
survive.“Farmers working by hand can’t compete,” he said. “We are lost.”
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