Agriculture / The Economic Times
With onion prices plummeting over 50% in a week, Maharashtra Deputy CM Ajit Pawar urged Union Minister Piyush Goyal to remove the 20% export duty. Increased arrivals and export promotion could stabilize prices and benefit farmers, struggling with unseasonal rain losses.
FAIFA unveiled a roadmap for India's agricultural growth until 2040. The plan focuses on digital infrastructure and sustainable farming. It projects a 5.5% growth rate, reaching Rs 42 lakh crore by 2030. Foodgrain production is expected to rise 25%. The roadmap includes short, medium, and long-term goals. These involve strengthening e-NAM, expanding irrigation, and promoting natural farming.
West Bengal's ban on interstate potato movement is crippling the cold storage industry and threatening potato growers with financial ruin. Unsold stocks are piling up, risking spoilage and distress sales. The ban disrupts the usual 60:40 consumption-trade ratio, impacting farmers and the rural economy, particularly in southern districts.
India's sugar production for the 2024-25 season is down 17% compared to last year, reaching 61.39 lakh tonnes by December. Increased sugar diversion for ethanol (40 lakh tonnes versus 21.5 lakh tonnes last year) and delayed crushing operations in Maharashtra and Karnataka due to elections contributed to the lower output.
The Development Monitoring and Evaluation Office, under the NITI Aayog, has invited bids from consultancy firms to support in the evaluation of the scheme which entails an annual expenditure of over Rs 70,000 crore. The move is aimed at rationalizing the food subsidy outgo.
Union food minister Pralhad Joshi launched a Rs 1,000 crore credit guarantee scheme to boost farmers' access to post-harvest loans using electronic warehouse receipts. The scheme aims to encourage bank lending against e-NWRs, with a target to increase post-harvest lending from Rs 40,000 crore to Rs 5.5 lakh crore over the next decade.
Indian parboiled rice prices held steady this week due to strong African demand, counteracting pressure from new crop yields. Vietnamese prices fell on strong supplies, while Thai prices edged up slightly due to baht appreciation. The Indian rupee's record low boosted exporter margins.
In a written reply to Lok Sabha, Minister of State for Food and Consumer Affairs B L Verma said, the Department of Agriculture constituted a fact finding committee to look into allegations of irregularities in the procurement of onions under Price Stabilisation Fund (PSF) by National Agricultural Cooperative Marketing Federation of India (NAFED).
The Indian government has tightened stock limits on wheat for traders and processors to stabilize prices and ensure food security. With ample wheat availability from the recent harvest, the move aims to curb hoarding and speculation until the next harvest in April.
Egg prices in Kolkata have jumped by roughly 25% in two weeks, driven by winter demand and exports to new markets like Bangladesh and Malaysia. The poultry industry, however, points to increased feed costs as the primary culprit, with maize prices doubling since 2021. While exports are a factor, they represent a small portion of India's total egg production.
The government has no current plans to raise the annual Rs 6,000 benefit under the PM-KISAN scheme, according to a statement made in Parliament. The scheme, launched in 2019, provides this amount in three installments directly to farmers. Over Rs 3.46 lakh crore has been disbursed so far through 18 installments, utilizing a digital infrastructure to avoid intermediaries.
India is advocating for a per capita-based approach to fisheries subsidies at the WTO, highlighting the vast disparity between the high subsidies given by developed nations and the support provided to its small-scale fishers.
The Indian government currently has no plans for large-scale hydroponic farms, confirmed Agriculture Minister Ramnath Thakur. Research institutions like ICAR are, however, actively developing and standardizing these soilless farming technologies, offering training to farmers. These methods are particularly useful in areas with poor soil or nematode infestations. Existing food safety and quality standards apply to hydroponically grown produce.
Rabi crop sowing is up 1.50% compared to last year, driven by increased wheat and chickpea acreage due to firm prices. However, oilseed sowing lags by 4.34% due to subdued prices, particularly for mustard. Pulse sowing overall shows a 4.27% increase, with chickpea acreage leading the growth at 7.14%.
Indian tea prices have risen by 18% between January and October due to reduced production, with a decline of 66.39 million kg this year. Union Commerce Minister Piyush Goyal highlighted the importance of quality production and compliance. Adverse weather in Assam and West Bengal has contributed to the production drop, impacting earnings despite recent price surges.
Tea planters in Assam seek climate change mitigation measures like climate-smart cultivars, proper shading, irrigation systems, and rainwater harvesting. The North Eastern Tea Association highlighted this in a memorandum to Union Minister Piyush Goyal, citing challenges faced due to stricter FSSAI compliance and impacts of climate change on tea production.
Potato traders in West Bengal threaten a strike over restrictions on selling to other states, imposed to control local prices. The wholesale price is Rs 27 per kg but retails at Rs 35-40 per kg. Neighbouring states like Odisha and Jharkhand face rising prices and urge negotiations to alleviate the situation.
Maize, diverted for ethanol production, has driven up poultry feed costs, impacted cooking oil prices, and reduced oilseed farmers' profits. The ethanol program has led to consequences like increased maize imports and declining revenues for the sugar industry, highlighting the complex trade-offs of biofuel policies.
Potato prices in Odisha have risen to Rs 40 per kg as West Bengal restricted supply, causing hundreds of trucks to be stranded at the border. Traders fear further hikes if the disruption continues. The Odisha government is considering sourcing potatoes from Punjab or Uttar Pradesh to mitigate the shortage.
Onion prices are currently at a five-year high. Export demand and monsoon-delayed harvests are keeping prices firm. The Lasalgaon market sees onions trading between Rs 15/kg and Rs 53/kg. Exports are up 50%. Nafed is selling onions from its buffer stock at Rs 35/kg in some cities. Prices are expected to decrease by mid-December as arrivals increase and quality improves.
India's rapeseed and mustard production is likely to fall. High temperatures are affecting the crop. Farmers are opting for wheat and potatoes instead. This could lead to a 10% drop in rapeseed acreage. India may need to import more cooking oils like palm and soyoil. This is due to rising demand and lower domestic production.
KRBL Ltd., known for its 'India Gate' basmati rice, is expanding into mixed spices and rice bran edible oil. The company plans to launch a range of spices under the 'India Gate' brand, starting with biryani masala. KRBL will also introduce 'healthy' edible oil, leveraging its existing production of unrefined rice bran oil.
India's Agriculture Minister Shivraj Singh Chouhan voiced concerns about soil degradation affecting 30% of the nation's land, emphasizing the urgency for soil health improvement. Chouhan highlighted government initiatives like soil health card distribution and promotion of sustainable farming practices. However, he stressed the need for greater efforts, particularly in light of climate change.