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Shri Y.C. NandaChairmanAFC Ltd.
Shri A.K. GargManaging DirectorAFC Ltd.
Shri L.N. Vasudev RaoGeneral ManagerUnion Bank of India
Shri G.C. SharmaGeneral ManagerBank of Baroda
Shri Gobinda BanerjeeGeneral ManagerPunjab National Bank
Shri E. ShivalingamGeneral ManagerUCO Bank
Shri P.C. SrivastavGeneral ManagerCentral Bank of India
Shri N. Narasa ReddyGeneral ManagerCanara Bank
Shri P.M. KshirsagarGeneral ManagerAFC Ltd.
HonoraryAdvisory Board
Views expressed by the authors do notnecessarily reflect those of the AgriculturalFinance Corporation Ltd. No permission isnecessary to reproduce contents except
for the copyright text.
EDITORIAL
A.K. GargEditor-in-Chief
Welcome to the October edition. The gross capital formation inIndia’s agriculture sector as a proportion of agricultural GDP hasgone up from 14.1 per cent in 2004-05 to 21.3 in 2008-09. It is
good news for all stakeholders in agriculture.
The outlay for the agriculture and allied sector increased substantially fromRs.7, 431crore in 2006-07 to Rs.19,070 crore in 2010-11, an increase ofabout 156 percent. These figures were cited by Agriculture Minister SharadPawar while addressing the Economic Editors Conference in New Delhi,recently.
For States, the Rashtriya Krishi Vikas Yojana (RKVY), launched in August2007 became the principal instrument for increasing investment in agricultureand allied sectors. Another important programme has been the NationalFood Security Mission (NFSM) launched in 2007-08 to enhance theproduction of rice, wheat and pulses by the end of the 11th Plan. The Missionalso helped to widen the food basket of the country with significantcontributions coming from the NFSM districts.
Despite these efforts, the 2010 Global Hunger Index (GHI) Report has rankedIndia abysmally at 67 among 84 countries. It was a reflection on the factthat higher growth rate of the Indian economy has not yet translated intohunger reduction. The GHI points to the high levels of child underweight,resulting from the low nutritional status of women in the country. This iscertainly a matter of concern and the remedy lies in intense efforts tomodernise agriculture.
According to the top brass of International Food Policy Research Institute(IFPRI) one percent farm growth can multiply poverty-reduction efforts twoor three times. The report is an implicit invitation to act and bring in morereforms to the farm sector to raise productivity levels and address issues offood security and malnutrition.
In this context, the new proposal on higher regulation of micro financecompanies needs a thumbs-up. The Central Government is reportedlyworking on a proposal to grant more supervisory powers to the NationalBank for Agriculture and Rural Development (NABARD) to managemicrofinance institutions (MFIs) in the country. Thus the Micro FinancialSector (Development and Regulation) Bill that may come up in the comingsession of Parliament will bring all non-profit MFIs under the jurisdiction ofNABARD.
Our cover story puts focus on Seeds sector and over all the content is agood mix of all important topics in agriculture. So read on…
I N S
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Tel: 91-022-22028924Fax: 91-022-22028966Email: [email protected]: www.afcindia.org.in
Trends of Investment Credit in IndianAgriculture ................................................6By A.N. Shukla, P.P. Dubey and S.K. Tewari
SEEDS: The Fast Growing Segment ............10By G. Kalyan Kumar
ONION – 2020: Higher Volumes ofProduction and Better Quality Standardsin Sight......................................................15By Dr. S.R. Bhonde
Strategic Approach to Higher AgricultureProduction ................................................21By D. Muthamizh Vendan Murugavel
I D E
Editorial Board
Published byAgricultural FinanceCorporation Ltd.Dhanraj Mahal, ChhatrapatiShivaji Maharaj Marg,Mumbai 400 001
Produced byL.B. Associates Pvt Ltd.H-108, Sector 63, Noida - 201301Tel: 91-120-2427280/82,Fax: 91-120-2427108Email: [email protected]: www.lbassociates.com
Editor-in-ChiefShri A.K. Garg
EditorG. Kalyan Kumar
Event/AdvertisingRanjit [email protected]
DesignAtul KumarPrakash Chand Arya
Turmeric: Huge Potential DespiteChallenges in Marketing ............................24By K.M. Deepa
Invasive Alien Species and its Impact onSoil, Water and Environment .....................28By P. Dey
Role and Application of MedicinalPlants in Enhancing IndigenousTraditional Knowledge ...............................32By Dr. Harjeet Singh, Manoj Kumar Paliwal, and Punam Paliwal
Saffron Mission to Improve Farmers Lot.....37
Agri News .................................................40
6Financing Agriculture
INSIGHT
Reasonable level of Investment inagriculture sector is essential forcapital formation to generate
growth. Gross Capital formation inagriculture declined from 10.2 percent ofGDP in 1999-2000 to 7.0 percent of GDPin 2006-07. The declining investment creditin agriculture in recent years has been amajor cause of concern despiteGovernment of India’s efforts of doublingof credit flow to agriculture during theperiod 2004-05 to 2006-07. This calls fordevising a conscious, implementablestrategy for increasing investment in theagriculture sector. In the era ofglobalisation, when agriculture is expectedto satisfy not only the domestic demandbut is also expected to leverage on itscomparative advantages and contributesubstantially to foreign exchange earningsby way of exports, capital formation inagriculture is crucial. Hence, the need forincreasing investment credit in agricultureis being felt as never before.
The growth in agricultural productiondepends upon a number of factors, ofwhich improvement in crop production
technology is one. The Green revolution,known for the use of high yieldingvarieties of seed and fertilisers, led to ashift in the production technology whichwas largely facilitated by investment inirrigation and land development. Thetechnology and investment havetogether given the much needed foodsecurity and improved the resilience ofthe agricultural economy to aconsiderable extent. Investment inagriculture has two components-Thecomponent of Gross Fixed CapitalFormation (GFCF), which includesprimarily the investment in physicalassets in agriculture; and the componentof stocks in form of inventories whichcould be used for further production. Thetwo components together constitute theGross Capital Formation (GCF).
In the era of globalisation, whenagriculture is expected to satisfy not onlythe domestic demand but also expectedto leverage on its comparativeadvantages and contribute substantiallyto foreign exchange earnings by way ofexports, adequate capital
formation is essential to supportmodernisation of technology andmanagement practices. Hence, the needfor increasing investment in agricultureis being felt as never before. The paperexamines the changing share of termcredit (investment credit) advanced toagriculture by different institutional creditagencies i.e., Cooperatives, ScheduledCommercial Banks (SCBs) and RegionalRural banks (RRBs) and disparities acrossstates in term credit flow on per hectarebasis.
Materials and Methods
This article covers agricultural credit flowfrom cooperatives, scheduledcommercial banks (SCBs) and regionalrural banks (RRBs), which are the majorplanks of institutional agricultural creditsystem. The data was drawn from Reporton Currency and Finance, RBI, andEconomic Survey, 2008-09, GOI,Reserve Bank of India Bulletins, StatisticalTables Relating to Banks in India, FertilizerStatistics, and Agricultural Statistics at aGlance.
Agency-wise flow of total agriculturalcredit as well as agency wise proportionof Short term and term credits in the totalagricultural credit has been analysed forthe post liberalisation period 1992-93 to2005-06. Disparities across states in termcredit flow on the per hectare basis wereexamined at two points of time i.e. 1985-86 (pre-liberalisation) and 1995-96(post-liberalisation), the latest year forwhich data on term credit flow wereavailable.
Cooperatives at the Front
Institutional funding of the farm sectoris mainly by cooperatives, commercialbanks, and regional rural banks. Theagency-wise flow of institutional creditto agriculture is presented in Table I. Itcan be seen from the table that
Trends of Investment Credit inIndian Agriculture
Decline in Investment Credit is a matter of Concern
By A.N. Shukla*, P.P. Dubey** and S.K. Tewari***
7Financing Agriculture
INSIGHT
cooperatives dominated the scene inagricultural credit flow till 1995-96despite its share in credit supply decliningfrom 61.8 percent in 1992-93 to 47.6percent in 1995-96. Commercial bankcredit over-took cooperatives in 1996-97 with its share in total agriculturalcredit consistently increasing from 48.4percent in 1996-97 to 69.5 percent in2005-06. Share of regional rural banks(RRBs) in total agricultural credit alsoincreased consistently from 5.48 percentin 1992-93 to 8.43 percent in 2005-06.The total agricultural credit flow from allinstitutional agencies shot up to Rs.180486 crore in the 2005-06 from Rs15169 crore in 1992-93 after economicliberalisation policy launched in 1991-92.
The agency-wise share of short-term (ST)and medium and long term (MT/LT)credit flow to agriculture is presented inTable II. Within cooperative credit theshare of term loan declined from 23.54percent in 1992-93 to 11.36 percent in2005-06. Within commercial bank credit,the share of term loan also declined inmost of the years barring a few marginalupward turns over the 14 years periodof 1992-93 to 2005-06. Within regionalrural bank credit also the share of termloan consistently declined from 41.16percent in 1992-93 and stood at 18.54percent in 2005-06.
The term capital strictly implies buildingup of capital assets like pump sets, tractoretc. Therefore, the role of term credit(investment credit) becomes significantfor capital formation in agriculture sectorfor raising the agricultural production andproductivity. Farmers also require croploan for a short term (production credit)to buy seed, fertilizer, payments of wagesto labour etc. Both production andinvestment credit are essential forsustaining high agricultural growth in theeconomy. Awasthi (2007) showed in hisstudy that the optimal range withinwhich investment credit must vary shouldbe between two-third (0.66) to three-fourth (0.75) of the production credit.However, the results in Table II indicatethat investment credit (term credit) hasbeen at less than 60 percent ofproduction credit (short term) till 2003-04, with recovery in the proportion in2004-05 and 2005-06 when renewedemphasis was given in enhancingagricultural credit flow. As aconsequence, capital formation in
agriculture has suffered and it is notedto be one of the reasons for slow rate ofgrowth in agriculture and allied sector.
State-wise Flow of Term Creditto Agriculture
In the post-liberalistion period (1995-96), inter-state disparities in the flow ofterm credit to agriculture fromcommercial banks declined in comparisonto the inter-state disparities in the pre-liberalisation period (1985-86) as isindicated by decline in coefficient ofvariation. Besides, there has been animpressive increase in per hectare flowof term credit over the decade (Table III).
In 1985-86, out of the seventeen statesonly six states had the per hectare flowof term credit from scheduledcommercial banks above the nationalaverage. (Rs. 243.62) These states were
Haryana, Punjab, Gujarat, Karnataka,Kerala and Tamil Nadu. The J&k, Assamand Orrisa had the term credit flowbelow Rs. 100 per hectare. The lowestper hectare term credit flow was inAssam (Rs. 0.94) and the highest was inPunjab (Rs. 616.63).
In 1995-96, the per hectare flow of termcredit from Scheduled Commercial Bankswas above Rs. 1000 in four states ofHaryana, Punjab, Kerala and Tamil Nadu;between Rs 500 and Rs. 1000 in fivestates of Bihar, Uttar Pradesh, Gujarat,Andhra Pradesh and Karnataka; belowRs 500 and above Rs. 100 in seven statesof Himachal Pradesh, J&K, Rajasthan,Orissa, West Bengal, Madhya Pradeshand Maharashtra. It was below Rs. 100in Assam. The lowest per hectare termcredit flow was in Assam (Rs. 17.82) andthe highest was in Punjab (Rs. 1353.44),
8Financing Agriculture
INSIGHTTa
ble
: I.
Agency
-wis
e F
low
of
Cre
dit
to A
gri
cult
ure
(Rupee
s in
crore
)
Agen
cy1
99
2-9
31
99
3-9
41
99
4-9
51
99
5-9
61
99
6-9
71
99
7-9
81
99
8-9
91
99
9-0
02
00
0-0
12
00
1-0
22
00
2-0
32
00
3-0
42
00
4-0
52
00
5-0
6
Co
op
era
tives
93
78
10
11
79
40
61
04
79
11
94
41
39
75
15
87
01
82
60
20
71
82
35
24
23
71
62
69
59
31
42
43
97
86
(61
.82
)(6
1.3
4)
(50
.18
)(4
7.5
6)
(45
.22
)(4
3.8
8)
(43
.17
)(3
9.4
7)
(39
.28
)(3
7.9
6)
(34
.09
)(3
1.0
0)
(25
.07
)(2
2.0
4)
Sch
edule
d C
om
merc
ial
Banks
49
60
54
00
82
55
10
17
21
27
83
15
83
11
84
43
24
73
32
78
07
33
58
73
97
74
52
44
18
14
81
12
54
77
(32
.70
)(3
2.7
4)
(44
.04
)(4
6.1
7)
(48
.40
)(4
9.7
1)
(50
.14
)(5
3.4
6)
(52
.72
)(5
4.2
1)
(57
.18
)(6
0.2
9)
(65
.03
)(6
9.5
2)
Regio
nal
Rura
l B
anks
(RR
Bs)
83
19
77
10
83
13
81
16
84
20
40
24
60
31
72
42
19
48
54
60
70
75
81
12
40
41
52
23
(5.4
8)
(5.9
2)
(5.7
8)
(6.2
7)
(6.3
8)
(6.4
1)
(6.6
9)
(6.8
7)
(8.0
0)
(7.8
3)
(8.7
3)
(8.7
1)
(9.9
0)
(8.4
4)
Tota
l1
51
69
16
49
41
87
44
22
03
22
64
11
31
84
63
67
73
46
16
55
27
44
61
96
56
95
60
86
98
11
25
30
91
80
48
6(1
00
)(1
00
)(1
00
)(1
00
)(1
00
)(1
00
)(1
00
)(1
00
)(1
00
)(1
00
)(1
00
)(1
00
)(1
00
)(1
00
)
Table
: II.
Agency
-wis
e (
short
-term
and t
erm
) Flo
w o
f C
redit
to A
gri
cult
ure
Ag
en
cy1
99
2-9
31
99
3-9
41
99
4-9
51
99
5-9
61
99
6-9
71
99
7-9
81
99
8-9
91
99
9-0
02
00
0-0
12
00
1-0
22
00
2-0
32
00
3-0
42
00
4-0
52
00
5-0
6
Co
op
era
tives
Short
te
rm7
17
07
83
97
25
08
33
19
32
81
08
77
12
51
41
47
71
16
52
81
87
87
19
73
42
14
38
23
24
43
52
66
(Pro
duct
ion C
redit
)(7
6.4
6)
(77
.48
)(7
7.0
8)
(79
.50
)(7
8.1
0)
(77
.83
)(7
8.8
5)
(80
.89
)(7
9.7
8)
(79
.86
)(8
3.2
1)
(79
.52
)(7
3.9
7)
(88
.64
)
Med
/Long t
erm
22
08
22
78
21
56
21
48
26
16
30
98
33
56
34
89
41
90
47
37
39
82
55
21
81
80
45
20
(Inve
stm
ent
Cre
dit
)(2
3.5
4)
(22
.52
)(2
2.9
2)
(20
.50
)(2
1.9
0)
(22
.17
)(2
1.1
5)
(19
.11
)(2
0.2
2)
(20
.14
)(1
6.7
9)
(20
.48
)(2
6.0
3)
(11
.36
)
Tota
l9
37
81
01
17
94
06
10
47
91
19
44
13
97
51
58
70
18
26
02
07
18
23
52
42
37
16
26
95
93
14
24
39
78
6(1
00
)(1
00
)(1
00
)(1
00
)(1
00
) (
10
0)
(1
00
)(1
00
)(1
00
)(1
00
)(1
00
)(1
00
)(1
00
)(1
00
)Sc
hed
ule
d C
om
mer
cial
Ban
ks
Short
ter
m2
43
22
70
04
08
7@
53
45
65
49
83
49
96
22
11
69
71
34
86
17
90
42
11
04
27
98
84
29
89
57
64
0(P
roduct
ion C
redit
)(4
9.0
3)
(50
.00
)(4
9.5
1)
(52
.55
)(5
1.2
3)
(52
.74
)(5
2.1
7)
(47
.29
)(4
8.5
0)
(53
.31
)(5
3.0
6)
(53
.37
)(5
2.7
6)
(45
.94
)
Med
/Long t
erm
25
28
27
00
41
68
48
27
62
34
74
82
88
21
13
03
61
43
21
15
68
31
86
70
24
45
33
84
92
67
83
7(I
nve
stm
ent
Cre
dit
)(5
0.9
7)
(50
.00
)(5
0.4
9)
(47
.45
) (
48
.77
)(4
7.2
6)
(4
7.8
3)
(5
2.7
1)
(5
1.5
0)
(4
6.6
9)
(4
6.9
4)
(4
6.6
3)
(4
7.2
4)
(5
4.0
6)
Tota
l4
96
05
40
08
25
51
01
72
12
78
31
58
31
18
44
32
47
33
27
80
73
35
87
39
77
45
24
41
81
48
11
25
47
7(1
00
)(1
00
)(1
00
)(1
00
)(1
00
)(1
00
)(1
00
)(1
00
)(1
00
)(1
00
)(1
00
)(1
00
)(1
00
)(1
00
)
Reg
ional
Rura
l Ban
ks (
RR
Bs)
Short
ter
m4
89
73
26
88
84
91
12
11
39
61
71
02
42
33
24
53
77
74
77
55
83
59
42
01
24
01
(Pro
duct
ion C
redit
) (
58
.84
)(7
4.9
2)
(63
.53
)(6
1.4
8)
(6
6.5
7)
(68
.43
)(6
9.5
1)
(7
6.3
9)
(7
6.9
1)
(7
7.8
1)
(7
8.6
7)
(7
6.9
7)
(75
.94
) (
81
.46
)
Med
/Long t
erm
34
22
45
39
55
32
56
36
44
75
07
49
97
41
07
71
29
51
74
62
98
42
82
2(I
nve
stm
ent
Cre
dit
) (
41
.16
)(2
5.0
8)
(36
.47
) (
38
.52
) (
33
.43
) (
31
.57
) (
30
.49
) (
23
.61
) (
23
.09
) (
22
.19
) (
21
.33
)(2
3.0
3)
(24
.06
) (
18
.54
)
Tota
l8
31
97
71
08
31
38
11
68
42
04
02
46
03
17
24
21
94
85
46
07
07
58
11
24
04
15
22
3(1
00
)(1
00
) (
10
0)
(1
00
) (
10
0)
(1
00
) (
10
0)
(1
00
) (
10
0)
(1
00
) (
10
0)
(10
0)
(1
00
) (
10
0)
ST T
ota
l1
00
91
11
27
11
20
25
14
52
51
69
98
20
62
22
38
46
28
89
13
32
59
40
46
84
56
13
55
26
17
56
53
10
53
07
(Pro
duct
ion C
redit
) (
66
.52
)(6
8.3
3)
(64
.15
) (
65
.93
) (
64
.36
) (
64
.76
)(6
4.8
5)
(62
.58
) (
63
.06
) (
65
.31
)(6
5.5
7)
(63
.53
)(6
3.3
7)
(58
.35
)
MT/L
T T
ota
l5
07
85
22
36
71
97
50
79
41
31
12
24
12
92
71
72
74
19
48
52
14
97
23
94
73
17
20
49
65
67
51
79
(Inve
stm
ent
Cre
dit
) (
33
.48
) (
31
.67
)(3
5.8
5)
(34
.07
)(3
5.6
4)
(35
.24
) (
35
.15
) (
37
.42
) (
36
.94
) (
34
.69
)(3
4.4
3)
(36
.47
) (
39
.63
)(4
1.6
5)
Gra
nd T
ota
l1
51
69
16
49
41
87
44
22
03
22
64
11
31
84
63
67
73
46
16
55
27
44
61
96
56
95
60
86
98
11
25
30
91
80
48
6(P
rod.
& I
nv.
Cre
dit
) (
10
0)
(1
00
) (
10
0)
(10
0)
(1
00
)(1
00
)(1
00
) (
10
0)
(10
0)
(1
00
) (
10
0)
(1
00
)(1
00
) (
10
0)
Rat
io o
f In
vest
men
t0
.50
0.4
60
.55
0.5
70
.55
0.5
40
.54
0.5
90
.58
0.5
30
.52
0.5
70
.65
0.7
1C
redit
to
Pro
duct
ion C
redit
9Financing Agriculture
Table: III. State-Wise Per Hectare Flow of Commercial Bank Term Credit to Agriculture
similar to the position as noticed in 1985-86. Only six states namely Haryana,Punjab, Bihar, Karnataka, Kerala andTamil Nadu experienced term credit flowabove the All India average. This positionis similar to that in 1985-86 exceptGujarat getting replaced by Bihar.
Impact of Liberalization
The above results reveal thatliberalisation policy produced desirableeffect of reducing inter-state disparitiesin the flow of term credit per hectarefrom Scheduled Commercial Banks.However, despite increase in term creditflow and reduction in inter-statedisparities therein, the ratio of productionto investment credit continues to remainbelow the desired level (1: 0.66 to 0.75).Therefore, requisite measures need to betaken by scheduled commercial banks forenhancing the flow of term credit toagriculture.
Suggestion for IncreasingInvestment Credit
The National Agriculture Policy adoptedin July 2000 had envisaged an annualgrowth in agriculture of over 4 percentper annum and highlighted adequate andtimely supply of institutional credit tofarmers. Total credit flow to agricultureand allied sectors during the Tenth FiveYear Plan period was projected atRs.7,36,570 crore, viz. Rs.3,59,701 crore(48.8 %) short-term credit andRs.3,76,869 crore ( 51.2 %) term credit.The ground level institutional credit toagriculture doubled in 2006-07 over2003-04 and reached the level of rupees229,400 crore. The credit flow isexpected to reach Rs. 264,455 crore in2009-10 against the target of Rs.325,000 crore.
There is no doubt about the continuedimportance of short-term credit which
accounts for little less than two third ofthe total institutional lending toagriculture. However, there is a dire needfor raising investment credit to meet thegrowing needs of infrastructure such astransport, storage, processing,marketing, quality testing etc. formodernising agriculture. Otherwise,Indian agriculture may continue to faceintermittent periods of crises andagricultural growth may continue toremain depressed.
*The writers are *Senior ResearchFellows
-
and Professors at Departmentof Agricultural Economics, G.B. PantUniversity of Agriculture & Technology,Pantnagar, Uttarakhand and **ReaderKAPG College, Allahabad
INSIGHT
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States 1985-86 (Pre-liberalization Period) 1995-96 (Post-liberalization Period)
Total Term Credit Gross Cropped Credit per hectare Total Term Credit Gross Cropped Credit per hectare
(Rs. Thousand) Area (Thousand (Rs. Thousand) (Rs. Thousand) Area (Thousand (Rs. Thousand)
ha.) ha.)
Northern Region 2019820 6580 258.59 4835500 7088.6 647.80
Haryana 2329300 5601 415.87 6053700 5974 1013.34
Himanchal Pradesh 127800 974 131.211 338100 972 347.84
J&K 94200 1030 91.45 174300 1073 162.44
Punjab 4413900 7158 616.63 10491900 7752 1353.44
Rajasthan 3133900 18137 172.79 7119500 19672 361.91
North-Eastern Region 3600 3794 0.949 70200 3938 17.83
Assam 3600 3794 0.949 70200 3938 17.82
Eastern Region 1580000 9254.33 172.35 4029167 9553 418.33
Bihar 2122200 10517 201.78 6642300 10019 662.97
Orissa 725600 9259 78.36 1855500 9668 191.92
West Bengal 1892200 7987 236.91 3589700 8972 400.10
Central Region 4670600 23998.5 192.74 12596200 25416.5 494.62
Madhya Pradesh 3382100 23016 146.94 10749000 25040 429.27
Uttar Pradesh 5959100 24981 238.54 14443400 25793 559.97
Western Region 3865650 15110 276.74 7950550 15704.5 519.79
Gujarat 3243500 9683 334.96 5621800 10082 557.60
Maharashtra 4487800 20537 218.52 10279300 21327 481.98
Southern Region 2377575 8232.75 314.17 6810675 8583.5 953.69
Andhra Pradesh 2643900 12100 218.50 6795200 13043 520.98
Karnataka 3365100 11146 301.91 8248100 11958 689.75
Kerala 1101600 2866 384.36 3946400 3066 1287.14
Tamil Nadu 2399700 6819 351.91 8253000 6267 1316.89
All India 41425500 175605 243.62 104671700 184616 609.14
Coefficient of 164.36 149.82Variation (%)
10Financing Agriculture
The Indian seed industry is the 8th
largest in the world with anestimated value of Rs 49 billion or
US$ 1.06 billion. It is growing at anannual growth rate of 12 percent. TheGovernment of India established theNational Seeds Corporation in 1963 andthe State Farming Corporations of Indiain 1969 to encourage production anddistribution of certified seeds of variousIndian crops. There are thirteen stateseed corporations arranging productionand distribution of certified seeds.
National Seeds Project
The National Seeds Project (NSP) wasundertaken by the Indian Governmentin 1967 along with the assistance of theWorld Bank.
While the NSP did set up huge seedprocessing plants in order to provide‘certified’. While the NSP did set up huge
seed processing plants in order to provide‘certified’ seeds of food crops, mainlyself-pollinating to farmers, most of theseplants operated well below capacity andwere stated to be examples of ‘faultytechnology being pushed into India’.
Legislation on Seeds in Indian agricultureis governed by nearly thirty legislations.Some of them are the Seeds Act 1966;the Essential Commodities Act, 1955; theBiological Diversity Act, 2002; PlantVarieties Protection and Farmers’ RightsAct, 2001; Patents Amendment Act,2005; Environment Protection Act,1986; Consumer Protection Act, 1986;Geographical Indication of Goods Act,1999; The Plants, Fruits and Seeds(Regulation of Import into India) Order,1989 etc.
The National Seed Plan was aimed atensuring seed replacement rate of 25percent for self-pollinated crops, 35
percent for cross-pollinated crops and100 percent for hybrids for achievinghigher productivity.
Fragmented Market
The private sector in the seed industry ishighly fragmented with an estimated 300players and the top 10 companiesaccount for 25 percent of the totalvolume. An estimated 250 companiesoperate as trading firms and thesegenerate an average turnover of Rs 5crore annually.
The commercial seed market accounts for25 percent of the total market potentialand the remaining 75 percent isdominated by vareital seeds that farmersretain from prominent food andcommercial crops. The public sector, ledby National Seeds Corporation Ltd and13 other State seed corporations,supplies high volume and low value seeds
SEEDS
By G. Kalyan Kumar*
COVER STORY
The Fast Growing SegmentThe Fast Growing SegmentSEEDS
11Financing Agriculture
of improved varieties of cereals, pulsesand oilseeds, the outlook said.
A buffer stock of seeds is maintained bythe National Seeds Corporation for thenortheastern states and by the State FarmCorporations of India for the other statesagainst such unforeseen contingencies asfloods and droughts.
The industry has shown a buoyantgrowth over the last two years on goodmonsoons. Nearly 70 percent of India’sseeds’ sales come from farmer bredseeds, 26 percent from those bred inpublicly funded institutions, and only 4percent from researched hybrids.
Role of Private Sector
Variety development (especially for self-pollinated crops) is predominantly carriedout in the public sector, although inrecent years there is growing privatesector involvement, which focuses mainlyon hybrid cereals, cotton, sunflower,vegetables, and flowers. The privatesector is also actively involved indeveloping bio-engineered crops ofcotton, oilseeds, and other crops. TheICAR, operating through 30 All IndiaCoordinated Crop
Improvement Projects (AICCIPs), fiveCrop Directorates, and seven NationalResearch Centres coordinates publicsector plant breeding. Basic geneticmaterial from which new varieties aredeveloped is available from theinstitutions’ own resources and from theNational Bureau of Plant GeneticResources (NBPGR), through which Indiahas established a working relationshipwith international agricultural researchcenters.
Hybrid Seeds
The domestic hybrid seeds market isgrowing annually at 10 percent a year,against the 5 percent global growth rate.Players like Monsanto India andSyngenta India dominate the hybrid seedmarket. The Indian market works out toabout 3.7 percent of the global market.
The seed industry is the backbone of themassive multi-billion fruit and vegetableindustry. In the interior regions farmersare busy gauging the possible benefitsof shifting to the branded, value-addedhybrid seeds which give better prices andhigher yields in relatively shorter span oftheir cropping activities.
Says an analyst, “the change is palpablein parts of Western Maharashtra,Karnataka, Gujarat, South Rajasthan,Andhra Pradesh, Tamil Nadu wherefarmers prefer branded seeds, theNorthern and the Eastern regions are yetto shift”.
An agri analyst said, “Most of the MNCsare willing to invest in technology andoffer advanced products while passingthe benefits to the farmer in the form ofhigher yields and the better prices.”
The changing pattern, in the retail foodindustry, has prompted the farmers toincrease seed replacement rates in Indiafor crops. Around 10-12 percent of thenormal seeds market has already shiftedto the hybrid seeds or valued-addedseeds, industry sources said.
Seed Policy
In 1988, National Seed Policy was framedthat involved a US$150 million loan fromthe World Bank to privatise the IndianSeed Industry. At this time, the importof seeds was still restricted but this sectorwas gradually opened up, to allow moreprivate participation.
Further, India signed the GATTagreement and joined the WTO andthese agreements made India obligatoryto make some changes in its laws,especially regarding Intellectual PropertyRights. These requirements were metthrough the Protection for Plant Variety
and Farmers’ Rights Act, 2001. In 2002,a new National Seed Policy was released,to meet the goals of this policy the newSeed Bill was drafted and tabled inParliament in 2004.
The objective of the new seed policy wasto reduce the direct involvement ofgovernment in seed production andmarketing, and to actively encourage theprivate sector to engage in research anddevelopment of new varieties. Thedominance of the public sector wasblamed for the backwardness of Indianagriculture, and one of the stated aimsof the National Seed Policy, 2002 was toencourage more private participation inagriculture and seed production,specifically, to complement the existingstructures and to replace them, ifnecessary.
NSP 2002
The government approved a newNational Seeds Policy in 2002 to provideintellectual property protection to newvarieties and set up institutes for theplanned development of the sector asvital instruments in attaining theobjectives of doubling food productionand making India hunger free.
The National Seed Policy, 2002 clearlyidentified the twin aims of encouragingthe seed industry, especially the domesticindustry and of ensuring maximumprosperity and security for farmers. Anumber of the National Seed Policy’s
COVER STORY
12Financing Agriculture
recommendations have been addressedin the Protection of Plant Varieties andFarmers’ Rights Act, 2002, including theestablishment of a National Gene Fundand a Plant Varieties’ authority.
The aims of the National Seed Policyinclude building up infrastructure,ensuring good quality of seeds andfacilitating international trade in seeds.At the very outset, the preamble of thebill makes clear its intention. The Billintends to “provide for regulating thequality of seeds for sale, import andexport and to facilitate production andsupply of seeds of quality and for mattersconnected therewith or incidentalthereto”.
A need was felt for using new techniquesand methods to increase the productivityof Indian agriculture. At the same timethe Bio-Technology sector came up withpromises of extremely productive
Genetically Modified (GM) Crops. Thesenew scientifically manipulated cropscaught the imagination of the IndianGovernment and farmers as well.
Consolidating Market
However, increasing international
competition, R&D costs, and the
complexity of biotechnology have led to
higher consolidation of the Indian seed
industry with several of the large and
medium companies merging or being
taken over by multinational seed
companies.
Most large multinational seed companies
now have their presence in India (either
as a joint venture or with 100 percent
equity) with their main focus on
biotechnology. These include Monsanto,Bayer CropScience, Syngenta, Advanta,Hicks-Muse-Tate, Emergent Genetics,Dow Agro, Bioseed Genetics
International Inc, Tokita Seed Co, andNunhems Zaden BV.
The initial focus of many of thesecompanies has been cottonseed, forwhich genetically modified (Bt) hybridshave already been approved by theIndian government for commercialcultivation, with many other bio-engineered crops in the pipeline.
Criticism on MNC Dominance
There is criticism that India’s adoption ofneo-liberal policies has lessened thesovereignty of rural India. TRIPs inparticular have created a gateway foragro-business conglomerates to engageGM seed monopolisation andmarginalise rural communities.
Critics say that centuries of indigenousknowledge, traditional cultivationpractices and sharing techniques arebeing compromised. And many farmers
COVER STORY
13Financing Agriculture
Production / Availability Of Certified/Quality Seed
Qty. In Million Tonnes
X Plan period XI Plan
CROP 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09
WHEAT 0.3150 0.3653 0.4783 0.4001 0.4568 0.6700 0.8768
PADDY 0.2921 0.3228 0.3156 0.367 0.4035 0.5354 0.6654
MAIZE 0.0455 0.1025 0.0815 0.0886 0.0808 0.0553 0.0740
JOWAR 0.0366 0.039 0.0352 0.0411 0.0348 0.0278 0.0274
BAJRA 0.0263 0.0347 0.0284 0.0349 0.0243 0.0244 0.0261
RAGI 0.0025 0.0027 0.0027 0.0026 0.0028 0.003 0.0036
BARLEY 0.0052 0.0062 0.0071 0.0054 0.0072 0.0241 0.0231
CEREAL TOTAL0.7232 0.8732 0.9488 0.9397 1.0101 1.3400 1.6964
GRAM 0.0245 0.0258 0.0327 0.0296 0.057 0.0608 0.0835
LENTIL 0.0031 0.0043 0.0047 0.0041 0.0026 0.0063 0.0059
PEAS 0.0036 0.0062 0.0065 0.0034 0.0044 0.0115 0.0130
URD 0.0134 0.0165 0.0138 0.0207 0.0146 0.0179 0.0314
MOONG 0.0096 0.0094 0.0114 0.019 0.0163 0.0169 0.0248
ARHAR 0.0086 0.0086 0.0085 0.0099 0.0119 0.0167 0.0175
COWPEA 0.0012 0.0009 0.001 0.0011 0.0013 0.0017 0.0024
MOTH 0.0003 0.0002 0.0004 0.0006 0.0006 0.0006 0.0020
OTHERS 0.0003 0.0002 0.0002 0.0003 0.0013 0.0018 0.0026
PULSES TOTAL0.0646 0.721 0.0792 0.0887 0.1101 0.1341 0.1830
GROUNDNUT 0.0730 0.101 0.0682 0.1119 0.1114 0.1762 0.3187
RAPE/MUST. 0.0105 0.0108 0.0164 0.016 0.0197 0.0196 0.0207
TIL 0.0022 0.0017 0.0018 0.0023 0.0021 0.002 0.0028
SUNFLOWER 0.0107 0.0118 0.0103 0.0133 0.0102 0.0111 0.0059
SOYABEAN 0.0662 0.0952 0.1181 0.1478 0.1348 0.1691 0.1801
LINSEED 0.0001 0.0002 0.0001 0.0001 0.0002 0.0003 0.0003
CASTOR 0.0044 0.0051 0.0045 0.0056 0.0063 0.0056 0.0056
SAFFLOWER 0.0010 0.0012 0.001 0.0013 0.0008 0.0009 0.0007
NIGER/others 0 0.0003 0 0.0006 0.0002 0.0001
OILSEEDS 0.1681 0.227 0.2207 0.2983 0.2861 0.3851 0.5350
TOTAL
COTTON 0.0367 0.0307 0.0301 0.0288 0.0256 0.0261 0.0272
JUTE 0.002 0.0022 0.002 0.0052 0.0037 0.008 0.0042
MESTA/OTHER 0.005 0.0001 0.0001 0.0002 0.0006 0.0018 0.0047
FIBRE TOTAL 0.0437 0.033 0.0322 0.0342 0.0299 0.0358 0.0361
POTATO 0.038 0.037 0.0397 0.0417 0.0415 0.0435 0.0430
OTHERS 0.002 0.0015 0.0021 0.0025 0.0041 0.0047 0.0100
GRAND 1.0396 1.2438 1.3227 1.4051 1.4818 1.9431 2.5035
TOTAL
Year of Total Seed Share ofProduction Production private
(Lakh qtls.) sector
2003-04 132.27 47.48%
2004-05 140.51 45.02%
2005-06 148.18 46.80%
2006-07 194.31 41.00%
have lost their right to cultivate andcontrol the agricultural production cycle.As a result, farmers increasingly findthemselves in debt and disempowered.
The decision taken by the Indiangovernment with the introduction of theSeed Bill 2004 provided tightened thecontrol of the seeds sector to themultinational corporations. Critics sayprovisions like compulsory seedregistration give the MNCs control overIndian seeds. They charge that amonopolistic patent regime andcorporate monopoly over seeds can beharmful as long as farmers have thealternative of their own zero cost,reliable, time tested high value seeds oftheir traditional varieties of indigenousagro-biodiversity.
Exports
The Seeds Act, 1966 provides for thelegislative framework for regulation ofquality of seeds sold in the country. Inorder to encourage export of seeds inthe interest of farmers, the procedure forexport of seeds has been simplified.Seeds of various crops have been placedunder Open General Licence (OGL)except the seeds of wild varieties, germplasms, breeder seeds, and onion seedswhich are on restricted list under theExport and Import Policy 2002-07.
India as a Hub
India has the potential to become a hubof seed production for South-East Asianregion and can be a supply source toAfrican countries, RabobankInternational said in a study.
“The case for India emerging as aproduction hub is backed by the fact thatthe country has built up sufficientexpertise and resources in both theprivate and public domain to become a
India has the potential to become a hub of seedproduction for South-East Asian region and can be a
supply source to African countries, RabobankInternational said in a study
COVER STORY
(Source: compiled by Seeds Division of DAC)Role of Public & Private SeedSector
(Source : compiled by Seeds Division of DAC)
14Financing Agriculture
strong ally in early stage contractresearch or late stage seedmultiplication,” the bank said in a marketoverview and outlook on Indian seedindustry.
The study stated germplasm and varietaltraits as key determinants of productperformance. “After cotton, hybrid rice,mustard and soyabean will be the cropsto drive industry growth,” the outlooksaid.
An increase in replacement ration couldgive depth to the industry and it wouldhelp increase the size of seed sector andvolumes in the mass market segment.“Development, higher penetration andrenewed focus are anticipated in statesincluding Bihar, Uttar Pradesh, MadhyaPradesh and Orissa,” the study said.
Even if the Indian market reaches a pointof saturation, the neighbouring marketssuch as Pakistan, Bangladesh, Sri Lanka,Thailand and Malaysia could becomeattractive destinations for export of seedfor crops, including cotton, sunflower,sorghum, pearl millet and vegetables.“Access to these markets could helpsustain the growth of Indian seedcompanies,” the bank said.
Outlook
The seed sector will be a major driver ofagriculture sector in the country to realisefuture growth due to increased seedreplacement rate, higher conversion,
Major GovernmentInitiatives in Seed Sector
• Enactment of the Seeds Act (1966)
• Seed Review Team-SRT (1968)
• National Commission onAgriculture’s Seed Group (1972)
• National Seeds Programme (1975-85)
• Seed Control Order (1983)
• Technology Mission on Oilseeds &Pulses (1986)
• Production and Distribution Subsidy
• Seed Transport Subsidy Scheme(1987)
• New Policy on Seed Development(1988)
• Seed Bank Scheme (2000)
• National Seeds Policy (2002)
• The Seeds Bill (2004)
• Formulation of National Seed Plan(2005)
• National Food Security Mission(2007)
National Seeds Policy,2002
• Variety development
• Plant variety protection
• Seed production
• Quality assurance
• Seed distribution and marketing
• Infrastructure facilities
• Transgenic plant varieties
• Import of seeds and plantingmaterials
• Seed exports
• Promotion of domestic private sectorseed industry
• Strengthening of the monitoringsystem
Seeds Bill, 2004
• Registration of kinds and varieties ofSeeds etc.
• Evaluation of performance
• Compensation to Framers
• Registration of Seed Producers andProcessing Units
• Seed dealers Registration
• Regulation of Sale of Seed and SeedCertification
• Seed Analysis and Seed Testing
• Export and Import of Seeds andPlanting Material
• Offences and Punishment.
wider use of proprietary hybrids,increased farmer awareness of newmethods and introduction oftechnologically advanced products thatoffer improved biotic and abiotic traits.
Stating that seed companies werecurrently spending around five percentof their turnover on research anddevelopment, the outlook said the firmsare expected to churn out more productswith shorter life cycles in the future. “Thiswill keep R&D costs a high level.Companies may decide to work inalliance with biotech companies for R&Dof new products,” it said.
The bottom line is—India’s seed industryis heading for exciting times.
*The Writer is Editor of FinancingAgricultureSeeds Research
COVER STORY
15Financing Agriculture
ONION – 2020Higher Volumes of Production andBetter Quality Standards in SightTime to Adopt New Farming Technologies
By Dr. S.R. Bhonde*
Onion is cultivated in India as oneof the important vegetablesand spice crops. With Its prime
place in the daily diet of Indians, Onionis consumed by both vegetarian and non-vegetarian population in both processedas well as fresh forms. The rising demandfor Onion coming from the increasingpopulation has warranted higherproduction volumes and application ofnew methods to increase productivity.There is also need to improve theavailability of onions through reductionin post harvest losses and increasedstorage capacity to cater to the needsfor regulating the supply throughout theyear.
The changing climate in the last few yearshas impacted the onion crop both at theproductivity and quality fronts. India is
the second largest country in growingonion, after China. However, averageproductivity is still low due to manyreasons including the varieties used undertropical and sub-tropical conditions andshort day conditions.
Export Potential
Export of onions from India both in freshand processed forms is increasing. Thesharp increase in export of onions duringpast two years has shown increasedglobal demand for Indian onion. Thedemand for White onion is increasing atthe export markets. In order to meet theraw material requirement for processedonions, there is need to increase theproduction of onion for processing aswell.
To map the scenario of Onion 2010, the
challenges emanating from limitedresources, increased labour problem, costof production, disease and pestinfestation, abiotic stress, changed foodhabits and influence of various factorsare to be reckoned with.
Cultivated Area
As per the estimates, the presentproduction of onion is about 95 – 100lakh MT from over 7 lakh hectarecultivated area. After the onion crisis in1998-99, the crop received muchattention from the Government andvarious schemes were initiated tostrengthen the development of this crop,as a result there has been substantialincrease in the area under production.The production has increased from 35lakh tonnes to about 100 lakh tonnesshowing an average increase of 10
OVERVIEW
percent per annum.
The storage also increased considerablybut productivity could not be increasedto the desired level. Keeping in view theincreased requirement as observed in thepast few years coupled with limitationson resources, more attention is requiredto improve the quality, quantity andproductivity. Even if we consider 5percent increase per annum in theproduction of onion, during 2020, itshould be at least 165 lakh MT. Toachieve this, the crop management andapplication of improved technology apartfrom use of improved varieties andhybrids have to be seriously considered.
Role of Maharashtra
Since Maharashtra is a leading state,growing onion with tremendous progressachieved in adoption of technology andadequate market exposure and storagefacilities there is further scope fordevelopment of onion in the state. InGujarat the impact of leveled soils,available capital for crop managementand proper use of farm manures andorganic manures along with chemicals,fertilisers for growing onion crop havehelped the Gujarat farmers.
In Maharashtra, the area under onioncultivation is fast increasing in districtslike Ahmednagar where onion hasproved to be a good rotation crop forsugarcane. The State Government along
with Maharashtra State AgriculturalMarketing Board has been encouragingfarmers to adopt micro irrigationtechnology and increase storage capacitythrough provisions of financial assistance.
Increased storage capacity with thefarmers in rural areas has proved to be aboon in maintaining the price level apartfrom increased exports. For increasedexports, a significant role has been playedby NHRDF through technical guidanceand services to farmers as well asexporters.
Intercropping
The new pockets having potential foronion cultivation are to be developed inthe coming years to eliminate problemsof low productivity and high diseaseinfestation. The pockets having betterirrigation facilities can be brought underonion cultivation to replace the areasunder traditional cultivation for a fewyears. The introduction of intercroppingand crop rotation techniques particularlywith crops which can help onion such asleguminous crop and other vegetablecrops can be tried. It can also beexperimented with newly plantedorchards as well as wide spaced cropsand long duration crops like sugarcane,chilli and even cotton can be consideredfor better utilisation of cultivable landwith limited resources. Thus in thecoming years, despite limited scope,expansion of area under onion can be
increased by adopting innovativepractices on a large scale.
Demand Projection
If we consider the consumption of onionat 25 gm per day per capita and presumethat 65 percent of population consumeonions and export goes to the tune of20 lakh MT with increase of 5 percentevery year and loss in handling andstorage etc as 12 percent and bulbrequired for use for seed production andfor processing industry with increasedrequirement for 2020 the quantity wouldbe required to the tune of proposedproduction level of 165 lakh MT during2020 from estimated current 100 lakhMT. It may also to be considered thatvariation in this level may have directeffect on price trend and thus need tobe watched very carefully.
Climatic Changes
Changing temperature, rainfall pattern,increased soil temperature, shortenedwinter and abrupt changes intemperature affect onion crop and thedevelopment of bulbs as well as itsquality. To meet the onion requirementsof 2020, the development of varietiesthat are tolerant to abiotic stress, varietiesof short maturity, changed plantingsystems, efficient use of water andnutrients, more use of organic nutrients,new practices to sustain moisture stressetc. are important. Technologies are to
Seed Crop
OVERVIEW
16Financing Agriculture
be standardised for different areas foradoption to maintain production levelwithout affecting the quality. This can beachieved by intensified awarenessprogrammes through NHRDF and alsowith the help of NGOs and Self HelpGroups.
Quality Seed
Seed is a basic input and many diseasesare likely to be transmitted throughseeds. In onion, although seed bornediseases are not affecting the croppresently, the increasing incidence of Irishyellow spot virus may pose a threat toonion as it appeared first in seed cropand is reporting in bulb crop in manyparts of the country.
This is alarming as steps are to be takenin a strategic manner to check the diseasein order to maintain the level of seed andbulb production through adoption ofappropriate plant protection measures.
The seed production is also a technicalprocess and seed development as wellas seed quality depends on severalfactors, there is need to standardise thetechnology suitable for different areas forquality seed production. To get therequired bulb production of quality by2020, there is also need to inculcate theconcept of seed village for onion seedproduction to meet the requirement ofthe area for quality seed of desirablevariety.
The quality seeds having goodgermination may help in reducing theseed rate per hectare from the existing7 - 8 kg to 4 - 5 kg. The trend of nurseryproduction and supply of healthy nurseryfor onion will have good scope when weconsider Onion 2020.
Hybrid Varieties
Although many hybrids including F1hybrids are available in different parts ofthe world, the hybrid varieties are notmuch popular in India mainly because ofhigh seed cost. So local varieties still havescope for improvement and can beadopted to the local climatic conditionsfor better bulb development. The hybridvarieties are presently used only on alimited scale, particularly, in contractproduction for export and processing.The introduction of hybrid varietiesthrough making of quality seeds atreasonable rates can be of help toincrease the productivity and eliminate
the defects in the crop, particularlybolting and doubling are seen increasingin the local varieties.
The use of biotechnological tools fordeveloping disease resistant varieties orearly maturing varieties is a need forOnion of 2020. Although the work is inprogress at research institutes byexploiting the sources from wild speciesof onion, it may take more time to bringsuch hybrids for commercial cultivation.
To meet the requirement of 2020, theimport of hybrid varieties can beincreased as there are many hybridswhich have been tested by NHRDF undershort day conditions giving encouragingresults under Indian conditions with theproduction level ranging from 500 – 600quintal/hactare.
Optimum Use
Keeping in view the limited resourcessuch as cultivable land and irrigation
water, there is a strong need to increasethe productivity and extend use of microirrigation techniques as well as mulchingtechnology on larger areas.
The maintenance of plant populationthrough manipulation of spacing andselection of the planting system toprovide more sun light and aeration toeach plant can increase the productivity.By managing the most appropriate plantpopulation we can encourage bettergrowth and bulb development to meetthe production targets through increasedproductivity. Selection of early maturingvarieties and nutrient management forenhancing the growth may also help toget better crop from less land and wateras observed in the trials conducted byNHRDF with micro irrigation, plantgeometry, fertigation and use of growthregulators in onion. The onion of 2020may have all these things included in thepackage of practices for onion cultivationas common practices.
Golden Yellow Hybrid Onion
Sprinkler Irrigation
OVERVIEW
17Financing Agriculture
18Financing Agriculture
Crop Rotation
Mono-cropping affects the productivitylevels as also the disease and pest problem.Also there is a risk of damage to crop andinter cropping is the best alternative tomake use of natural resources and plantprotection in a better way.
Similarly crop rotations shall keep crop freefrom many diseases and pests apart fromincreased productivity by adopting bettercrop rotation. Onion after soybean orgroundnut has proved increasedproductivity during rabi whereas latekharif crop of onion after bajra giveshigher production of rangda crop. Intercrop of onion in sugarcane is already inpractice and it needs to be popularised inother areas using fertigation techniquesfor higher productivity of both crops.
Organic Production
There has been increasing demand fororganically produced horticultural cropsand efforts are being made for manycrops for production through organicpractices and also under Eurep Gap andGlobal Gap certification. Not only forexport to European countries, it is alsorequired in many other countries fordomestic supplies and may be thecommon need of the future.
The organic farming practices are to bepopularised and adopted to maintain therequired productivity level. Theproduction and use of vermi compost,use of green manuring, use of bio-fertilizers and bio-pesticides can scaledown the bulk use of chemical fertilizersand pesticides. Increased use of manybiological tools can also be tried tomonitor insect population to achieve theorganic production.
However, it will also be essential tomarket the organically produced onionunder a brand name with assured qualityand Onion 2020 might have retail shopsselling organic onions under consumerpacking and prime rates as awarenessabout the medicinal properties oforganically produced onion bulbs go up.
Precision Farming
Keeping in view the increased cost ofproduction and requirement of locationspecific technologies particularly fornursery management, weedmanagement and nutrient management,precision farming technologies can betried. Based on the soil and plant healthanalysis and keeping in view the impactof local weather conditions on bulbdevelopment, precision farmingtechniques are to be popularised throughFLDs in potential areas. Care shall betaken to avoid entry of new weeds anddiseases and pests through manures andfertilisers from different sources as alsoplanting material and seeds meant foruse in different areas.
The onion of 2020 may see that thesepractices as well integrated managementpractices are widely adopted by thefarmers as strategies are to be developedfor such practices as per therecommendations of core group formedafter the crisis of onion in 1999-99.
Soil Health
The soil health analysis to find out microflora present in the soil to plant protectiontechniques accordingly is very importantdue to the high price of chemicals,pesticides and their adverse effects onsoil and plant health. That wayIntercropping based management is very
important for crops like onion in view ofthe fact that the crop which suffers frommany diseases and insect pests issensitive to weather effects.
In onion production, soil health analysisand nutritional analysis of the soil areimportant before targeting higherproduction and quality standards toachieve Onion 2020. Mulching practicesalso need to be adopted for maintainingsoil microflora while maintaining the soiltemperature and moisture levels.
Mechanisation
Onion is a labour intensive crop wheremore labour is required for operationslike transplanting, weeding, harvestingand neck cutting. Due to non-availabilityof labour at required time and increasedlabour, the cost of production of onion isincreasing day by day. Hence there is astrong need for mechanisation. Thepneumatic seeder for sowing,transplanter, harvester toppers as well asgraders are all available but Indian onionfarmers have to get them standardisedand popularised as per the Indianconditions. Keeping in view the soilconditions and size of the land holdingthere is a need to make improvementsand modifications in these machines andonion 2020 shall definitely see thatmechanisation is more adopted in onion.
The transplanter is being practised bysome of the farmers and they have usedthe planting machines where somemodifications are made locally. To takeplanting of onions with these machines,a new thought wave for theimprovements on our facilities isrequired. For this, the planting system,needs to be modified and more researchapplied to popularise the mechanisation
Drip Irrigation
Keeping in view theincreased cost ofproduction and
requirement of locationspecific technologies
particularly for nurserymanagement, weed
management andnutrient management,
precision farmingtechnologies can be tried
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19Financing Agriculture
in onion farming to envisage the targetsset for Onion 2020.
Alternate Technologies
In order to minimise the effect of weathervagaries and get the crop in short time,the nursery raising under protectedconditions and production of onionthrough direct seeding instead oftransplanting as also production of onionthrough sets are the alternatetechnologies which can be adopted tominimise the risk.
Nursery rising for kharif and late kharifonion under shed net to avoid the effectof high temperature and heavy rains hasalready been practiced in some areasparticularly for hybrid seeds to reduce thedamage in nursery and also for takingthe nursery when outside conditions arenot favourable for nursery rising. Thistechnique has to be popularised on muchwider scale to get the onion productionwith more availability of healthyseedlings in the coming years.
Through direct seeding method the totalcrop duration can be reduced by 30 – 50days, however, weed-free field and soiltreatment to avoid the loss of seedlingsdue to mortality and pallatization ofseeds etc. as well as sowing with the helpof pneumatic seeder are the technologieswhich are to be associated with thispractice.
The set production is a common practicefollowed in Gujarat and Rajasthan as wellas in many other parts and is becomingpopular where sets can be producedduring summer and planting is done afterthe rains with ridge and furrow methodto get bulb development within 60 – 65days. This practice can be extended todifferent areas to meet the onionrequirement when kharif crop fetchproblems due to adverse weatherconditions in particular. More adoptionof these techniques may be therequirement for onion 2020.
Contract Farming
Assured supply of produce at desirabletime and assured returns to the farmercan be achieved through the contractfarming which is now becoming popularfor different crops including onion. Thismay be adopted by the farmers on widerscale particularly for export andprocessing to get desirable produce andat required time. It may also be used for
organic production and by forming groupof farmers to take up production byavailing common facilities and saving ofmany expenditures involved, contractfarming may be the better option foronion farming. The increasing trend ofthis practice and entries of exporters,processors as well as many multinationalsincluding agencies like Reliance Fresh ismarking the trend that by 2020 a largenumber of farmers may opt for contractfarming. This will also allow thetechnology adoption in a much betterway and get benefit of the technologiesalready developed but not used byindividual farmers.
Processing and Export ofProcessed Products
Although onion is a good crop forprocessing particularly throughdehydration and a large number of unitsin operation in Mahuva area in Gujarat, itis noticed that in recent years the demandfor processed products is increasing bothfor export and domestic markets and thereis scope for increased processing.
The availability of raw material issometimes a constraint for processorsand thus it appears that there is need toincrease raw material production keepingin view increased scope of onionprocessing. Similarly other processedproducts such as onion pickles, onioncrush, onion paste, onion puri, frozenonion rings, onion brine etc can bedeveloped and popularised so that onionprocessing industry can run profitablyand products are also available atreasonable rates to the consumers.
Increasing demand for processing andexport of processed products gives anindication that by 2020 there may beincreased production of onion forprocessing and thus R&D in this directionneeds to be strengthened to meet therequirement of raw material as well asother factors such as packing and storageof processed products which are also tobe attended suitably. The waste obtainedafter processing of onion can beconverted into vermi compost and usedas manure.
Irradiation
Irradiation of onion with the help ofgamma rays is standard practice andirradiated onions are accepted in manycountries. Onion irradiation unit wasestablished by BARC at Lasalgaon.
Getting the bulbs irradiated and theirstorage is required without muchdisturbance. Hence this technology hasto be popularised for export where itwould be essential to have linkagebetween exporters and irradiation unitin a compact area to avoid excessive coston transportation and system of handlingbe such to avoid disturbance of onionsafter irradiation.
The effect of irradiation is to be combinedwith ventilated storage system to getbetter performance for storage and it isexpected that these facilities shall be usedby more No. of users including farmersand exporters as well as processors by2020. This technology can help storageof onions at moderate temperature andthereby reduce cold storage costs.
Onion Transplanter
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20Financing Agriculture
Post Harvest Management andStorage
Emphasis has to be given on post harvesthandling and storage with increasedstorage capacity to meet therequirements of the entire year. Keepingin view the increased quantity requiredfor processing, export and domesticconsumption the storage has to beincreased by 10 percent every year andby 2020 the storage capacity mustincrease from the present 30 lakh MTupto 60 lakh MT with estimated targetsof 33 – 35 lakh MT export out ofprojected 165 lakh MT production. Thestandardised PHM technology needs tobe extended to farmers through intensivetrainings and locally requiredmodification needs to be included forbetter results.
Field curing, shed curing, neck cutting,disinfection of go down and premisesused for onion handling, pre-harvesttreatments to reduce post harvest lossesand mainly the quality of bulbs requiredfor better storage needs to be elaboratedto the users for better adoption oftechnology and avoid losses tomaintaining availability of onion 2020.There is strong need to give intensivetraining as PHM and storage on extensivescale in different parts of country are to
be suitably arranged as per locallyprevailing conditions.
Marketing
In onion the marketing has always beena constraint to maintain the price leveland as onion is a semi perishablecommodity it needs lot of care inhandling and marketing Govt. agenciesinvolved in marketing of onion were notvery successful. The forward marketingis also not seen to be very successful inthe onion due to its perishable nature andheavy fluctuation in the prices. However,in order to reduce the gap between onfarm price and retail price of onion, theintroduction of consumer packing tominimise handling in marketing chain,forming associations of growers withprovision of retail marketing facilities inimportant cities and marketing under abrand name may be more purposeful inthe coming years and may also overcomethe problems of onion marketing facedpresently.
The fluctuation in prices can be avoidedby promoting the farmers for morestorage and also by providing assistanceon packing, transportation and retailmarketing by giving the benefit ofdifferent government schemes so thatprofit level of farmer is maintained andhe is encouraged to grow more onions
to meet the increased requirements of2020.
Extended Needs
There is also need to change the foodhabits by accepting green onionswhenever there is less availability ofmatured bulbs. There is also the need topopularize onion cultivation in kitchengardens, in pots, trays, terrace gardeningetc to overcome the onion requirementparticularly for green onions. Awarenessof people in this regard may yield someresults and this will give fresh onions forconsumption and also help the Indianonions to contribute more in export inthe coming years.
The introduction of spring onion, leekand shallot on more areas by usingavailable varieties and cultivation of theseunder protected condition such aspolyhouses can also be developed in thecoming days.
In short, onion 2020 has very brightfuture which may give better profit tothe farmers and also hike the availabilityat reasonable rates to the consumers withthe help of adoption of technologiesdeveloped for onion production, postharvest management and storage.
*The Writer is Additional Director,NHRDF, Nashik (MS)
Consumer Packing – bagged Onion
OVERVIEW
21Financing Agriculture
FOOD SECURITY
Strategic Approach to HigherAgriculture ProductionBy D. Muthamizh Vendan Murugavel*
“Of all things before us, agriculture comes first”- Jawaharlal Nehru
Of India’s total geographical areaof 329 million hectares, only145 million hectare is cultivable
land. At the same time, the day-by-dayper capita land availability is decreasingfrom 0.48 hectare in 1952 to 0.15hectare at present.
Meeting the food security and livelihoodneeds of the future is a challenging task.In India, about 75 percent of children areunderweight due to lack of propernutrition. The population is increasingvery fast at the rate of 1.9 per annum.However, the average growth rate offood (agriculture) production is only 2.1percent. Hence, there is no option butto produce more and more food grainsand other commodities. Indian will see asurge in the domestic food demand from
168.3 million metric tonnes in 1991 to343 million metric tonnes in 2020 ormaybe even more.
Engulfed within a vortex of populationgrowth, economic instability and climatechange, food security has become anurgent challenge for national and globalgovernance. Food security means theeasy availability and access of food at alltimes in sufficient quantity in a safe andnutritious form to meet the dietaryrequirements and food preferences foran active, healthy and productive life. Infact, food security is the prerequisite forthe economic and social stability of anynation. Again sustainable food securityrequires a stable supply of good andproperly functioning agricultural markets.
Millions of people worldwide suffer from
hunger and under-nutrition. A majorfactor contributing to this internationalproblem is food insecurity. This conditionexists when people lack sustainablephysical or economic access to enoughsafe, nutritious, and socially acceptablefood for a healthy and productive life.Food insecurity may be chronic, seasonal,or temporary, and it may occur at thehousehold, regional, or national level.
The World Development Report 2008called for greater investment inagriculture in developing countries(World Bank, 2008). It warned that theagri sector must be placed at the centreof the development agenda if theMillennium Development Goal (MDGs)of halving extreme poverty and hungerby 2015 has to be realised. Yet, while 75
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22Financing Agriculture
percent of the world’s poor live in ruralareas, a mere 4 percent of officialdevelopment assistance (ODA) goes toagriculture in developing countries. Theshare of agriculture in ODA has declinedsharply in the last two decades, and thisneglect of agriculture is all the morestriking because it was in the face ofrising rural poverty.
Hunger Index
As per the Global Hunger Index (GHI)released by International Food PolicyResearch Institute (IFPRI) in October2008, India’s rank was dismal in 66thposition among 88 countries. The GHIof India was 23.70, sandwiched between23.53 of Burkina Faso and 23.83 ofZimbabwe, the 65th and 67th rankholders respectively. In fact, India’sperformance on hunger eliminationduring the last 18 years was stated to be
‘lacklustre’ by IFPRI, because the indexdeclined only marginally from 32.5 in1990 to 23.7 in 2008. Except Bangladeshwith GHI of 25.7 (rank 70), otherneighbouring countries Pakistan 21.7(61), Nepal 20.57 (57) and Sri Lanka15.0 (40) were better than India.According to IFPRI three factorscontribute to hunger index, namelyproportion of population undernourished (PUN), prevalence of underweight in children under five years age(CUW) and proportion of children dyingbefore the age of five i.e. mortality rate(CM).
The number of people lacking access tothe minimum diet has risen from 824million in the Millennium DevelopmentGoal (MDG) baseline year 1990 to 1,020million in 2009. In South Asia 46 percentof young children are underweight; inIndia less food is available to ruralhouseholds than in the 1950s. Theabsence of vital protein and micro-nutrients such as iron and iodine impairsthe ability to learn and reduces resistanceto disease, especially in young children.There is a projection that global foodproduction must rise by 70 percent by2050 to meet the needs of the projected40 percent growth in world population.
The right to food is considered as afundamental human right andinternationally related to thegovernment’s responsibility to providesocial protection and promote household
Crops Requirement Requirement in million tonnes
Per day in gms 2000 2010 2020
Cereal and Millets 420 198.7 237.4 280.99
Pulses and legumes 40 18.92 22.61 26.76
Foodgrains 460 212.62 260.01 307.75
Roots and Tubers 75 35.48 42.39 50.18
Vegetables 125 91.66 109.52 129.62
Fruits 50 36.66 43.81 51.85
Milk 150 70.96 84.79 100.35
Fats and Oils 22 10.41 12.44 14.72
Sugar 30 14.19 16.96 20.07
Egg 45 21.29 25.44 30.11
Meat 25 11.83 14.13 16.73
Fish 25 11.83 14.13 16.73
Population - 1004.5 1200.17 1420.54
Production Requirements by 2020 to meet the Balanced Diet Normsprescribed by ICMR
Source: UN Long Term Population and ICMR Dietary Requirement for a Balanced Diet
Crop 2004- 2005- 2006- 2007- 2008-2009
2005 2006 2007 2008 Target Achievement*
Rice 83.1 91.8 93.4 96.7 97.0 99.4
Wheat 68.6 69.4 75.8 78.6 78.5 77.6
Coarse cereals 33.5 34.1 33.9 40.8 42.0 38.7
Pulses 13.1 13.4 14.2 14.8 15.5 14.2
Foodgrains 198.4 208.6 217.3 230.8 233.0 229.9
Production of Major Crops in India (Million Tonnes)
Source: Ministry of Agriculture; *Third Advance Estimates
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23Financing Agriculture
economic security. In order to enhanceownership of this right, one of our mainchallenges will be to carefully examinethe coping strategies of poor families andtheir children to overcome foodinsecurity.
Causes of Food Crisis
• Poor weather conditions in manyparts of the world
• A substantial increase in fertilizerprices
• A huge increase in oil prices
• The partial failure of GreenRevolution
• Explosive population Growth andUrbanisation
• Land Grabbing
• The lack of attention to relevantagricultural research and extensionby public bodies
• Excessive use of ground water incultivation
• Inadequate attention to preserving orregenerating land and soil quality
• Over-use of chemical inputs thathave long run implications for bothsafety and productivity
• The ecological implications of bothpollution and climate change,including desertification and loss ofcultivable land.
Rising income level of over the past yearshas not supported the basic issue ofensuring the food security of thepopulation. Instead, nutrition indicatorshave stagnated and per capita calorieconsumption has actually declined,suggesting that the problem of hungermay have got worse rather than better.
The urgency of tackling these causes offood insecurity is redoubled by ourknowledge of the impact of climatechange which has caused poor harvestsin different ways ranging from droughtsto excessive rain in many parts of theworld. In South and East Asia, the retreatof Himalayan glaciers threatens foodsecurity through disruption to the criticalwater cycle. One fifth of the world’spopulation lives in the five major riverbasins of the Himalayan water towers.
Despite these warnings, climatenegotiators are predicting a two degreetemperature rise as an acceptablethreshold, leaving poorer countries toadapt as best they can. NationalAdaptation Programmes of Actionsprepared by the Least DevelopedCountries focus on modest community-level initiatives, including the use ofalternative seed varieties, improved soilmanagement, maintenance of watermanagement systems and reforestation.
Persistently high food prices in thedeveloping world continue to crippleaccess to food for a large number ofvulnerable population in both urban and
rural areas. Hence, it becomes necessaryto avoid instability in domestic prices offood grain and curb speculativetendencies.
Outlook
Food insecurity and hunger are real andgrowing problems in India and the entireworld. The roots of crisis highlighted byanalysts seemed to have been ignored bypolicy makers in most countries.Burgeoning population of India leads toincrease in consumption, but since theproduction is not growing at the same rate,there needs a mechanism to ensure enoughfood for the poor. Areas of production haveto be increased still. We also need toimplement measures like rain waterharvesting, watershed management alongwith improvements in irrigation facilities.Efforts to increase the production of fruits,vegetables and horticultural crops wouldensure both food security and adequateremuneration for farmers.
The Food Security Act should ideally bean opportunity for the government toshow its seriousness of purpose andcommitment. For that, however, it shouldgo beyond piecemeal measures tocomprehensively ensure that food is abasic human right, addressing bothimmediate hunger and, in the longerterm, all the three aspects of availability,access and nutritional outcomes. Thiscalls for a life-cycle approach, startingwith addressing the rights of the child,continuing through to old age, adoptingan inclusive approach, greatercoordination between departments andministries, making the necessaryinvestments and budgetary allocations toensure both adequate production andmechanisms to cope with climatechange, and greater vigilance in ensuringeffective distribution and utilisation ofallocations made.
To eliminate the problem of hunger, thepolitical framework of democracy and anuncensored press can make a substantialcontribution, but it also calls for activismof the public. Above all, agriculture mustbe given prime importance and must begoverned by farmers, rather thaninstitutions that are profit-oriented, toensure long term food security.
*The Writer is Assistant Professor, PG &Research, Department of Commerce,Gobi Arts & Science College, Gobi, TamilNadu
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24Financing Agriculture
Agricultural sector plays a pivotalin the economic development ofthe country. Agriculture is a major
component of the Indian economy, Morethan 75 percent of Indians earn theirlivelihood from agriculture andagriculture oriented works. MahatmaGandhi said, “Indian economy lives inrural villages”. It is from villages manyof the industries are getting their rawmaterial that too from agriculture sector.Both agriculture and Industry areinterdependent. Agriculturaldevelopment promotes industrialexpansion and developed industries inturn help the agricultural sector byproviding larger and larger markets andgreater income. Nearly 40 percent of thenational income of India is derived fromagriculture. Turmeric is a farm productthat has multifarious applications.
History
The exact origin of turmeric isunidentified but it is said that it originatedin the parts of western India. It has beenused in India for 5000 years now. Initiallyit was cultivated as a dye as its brightyellow color works as a colouring agent.Then with passing of time people cameto know about its developed uses andthey started using it for cosmeticpurposes and then as a medicine.Turmeric reached China by 700AD, EastAfrica by 800AD and West Africa by1200AD and started becoming popularthroughout the world.
The Arab traders took turmeric to Europein 13th century. Marco Polo was soimpressed by turmeric that he mentionedit as a vegetable that has properties ofsaffron, but it is not really saffron.
Ancient Indian medical literature,Ayurveda also mentions about turmericbeing an extremely effective herb forstomach disorders and food poisoning.
India Ahead
Currently, India is the major producer andconsumer of turmeric. China is secondlargest supplier of the spice and it isfollowed by a number of other countriesin the Indian sub-continent, SoutheastAsia, the Caribbean and Latin America.None of these are of significance asoleoresin suppliers. Other producers inAsia include Bangladesh, Pakistan, SriLanka, Taiwan, China, Burma(Myanmar), and Indonesia. Turmeric isalso produced in the Caribbean and LatinAmerica: Jamaica, Haiti, Costa Rica, Peru,and Brazil. The use of the spice spreadwidely in Oceania, but it is not used as acondiment in Melanesia and Polynesia.There are two dominant types ofturmeric in the world market: ‘Madras’,and ‘Alleppey’, both named after theregions of production in India. Theorange-yellow flesh Alleppey turmeric ispredominantly imported by the US,
By K.M. Deepa*
TurmericHuge Potential DespiteChallenges in Marketing
Ancient Indianmedical literature,
Ayurveda alsomentions about
turmeric being anextremely effective
herb for stomachdisorders and food
poisoning
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25Financing Agriculture
where users prefer it as a spice and afood colorant. Alleppey turmeric containsabout 3.5-5.5 percent volatile oils, and4-7 percent curcumin.
In contrast, the Madras type containsonly 2 percent of volatile oils and 2percent of curcumin. The Madrasturmeric is preferred by the British andMiddle Eastern markets, for it is intense,brighter and lighter yellow colour, bettersuited for mustard paste and currypowder or paste used in oriental dishes.Turmeric produced in the Caribbean,Central and South America has lowcurcumin and volatile oil contents, andis darker and is not desired by the USimporters.
The Bengal type is preferred for use indyes in India. It is interesting to note thatin the US, turmeric is considered as aspice by the food industry, whereas theFDA classifies it as a food colorant. Themajor producer, India, exports to themost of the consumers. UAE, US,Bangladesh, Japan, Sri Lanka, Malaysiaand UK, together account for about 65percent of Indian turmeric exports.
India Scenario
India is the largest producer, consumerand exporter of turmeric in the world.
The country consumes most (80 percent)of its turmeric production and it exportsthe surplus. Turmeric is grown in as manyas 25 states of India with AndhraPradesh, Tamilnadu, Karnataka andOrissa being the leading producers.Other main producers of turmeric areGujarat, West Bengal, Assam,Meghalaya and Maharashtra. India hasnearly 186 thousand hectares underturmeric cultivation during the year2006-2007. Andhra Pradesh toppedboth in area and production during theyear 2006-2007 with 69990 hectares(40.46 percent) and 518550 tonnes(60.60 percent), respectively. Tamil Nadufollowed with acreage of 25970 hectares(15.01 percent) and production of143358 tonnes (16.75 percent).
Important Studies
A few studies have been already madein the marketing of turmeric. Some ofthe important studies on the relatedtopics have been reviewed here.Balaraman Nair. M. (1980) made anattempt to study on India’s Export Tradein Turmeric and Ginger. The studyconcluded that India’s export tradeincrease year to year. Boosting the exporttrade by diversification of products andmarket is very important. The new
technique for processing turmericevolved by CFTRI may be popularizedamong farmers to improve the qualityof the produce”.
Lakshmanachar, M.S. (1980) studied themarketing of turmeric and ginger in India.The study concluded that supply exceedsdemand; the stated and central levelco-operative organisations should enterthe market and procure the surplussupplies. This could be maintained as abuffer stock for realizing in the off-season. Agricultural produce market actshould be introduced and enforced forginger and turmeric in states like Kerala.The farmers should be educated forselling their produce in regulatedmarkets. The directorate of marketingand inspection may update theirpublished reports on marketing ofturmeric and ginger by conductingnecessary surveys.
P.G.Gadgil (1981) studied the Marketingof turmeric in Sangli District, revealed theextent or concentration in thecommission agency business. The studyalso concluded that the margin ofintermediaries appeared to be reasonablylow and the return from the storage wasnot a dominant factor in the margin ofintermediaries.
N.Raveendaran (1981) studied theperformance of farmers towards thevarious agencies engaged in turmericmarketing in Tamil Nadu and to analysethe domestic trade of turmeric throughprice spread and market structure. Fromthe study on price spread, he concludedthat the marketing margin of thewholesaler, secondary wholesaler-cum-processor and retailer were 4.74 percent,5.98 percent and 30.06 percentrespectively on consumer’s rupee
R.Baskaran (1987) studied the Marketingof turmeric in Erode regulated market.An attempt was made to assess theperformance of Erode regulated marketin the marketing of turmeric. The studyshowed that the farmers’ response toregulated market in terms of quantity hasincreased. Increased arrivals in theregulated market need not result inincreased revenue for the regulatedmarket because of the reduced pricewhich results in reduced market fee.
V.B. Jugale (1988) studied the Role ofregulated market in marketing theturmeric produce with reference to Sangli
Turmeric Varieties
SI. Variety Mean Crop Dry Curcumin Oleoresin Essential
No. yield duration recovery (%) (%) oil(%)
(fresh) (days) (%)
(t/ha)
1. Suvarna 17.4 200 20.0 4.3 13.5 7.0
2. Suguna 29.3 190 12.0 7.3 13.5 6.0
3. Sudarsana 28.8 190 12.0 5.3 15.0 7.0
4. IISR Prabha 37.5 195 19.5 6.5 15.0 6.5
5. IISR Prathibha 39.1 188 18.5 6.2 16.2 6.2
6. Co-1 30.0 285 19.5 3.2 6.7 3.2
7. BSR-1 30.7 285 20.5 4.2 4.0 3.7
8. Krishna 9.2 240 16.4 2.8 3.8 2.0
9. Sugandham 15.0 210 23.3 3.1 11.0 2.7
10. Roma 20.7 250 31.0 9.3 13.2 4.2
11. Suroma 20.0 255 26.0 9.3 13.1 4.4
12. Ranga 29.0 250 24.8 6.3 13.5 4.4
13. Rasmi 31.3 240 23.0 6.4 13.4 4.4
14. RajendraSonia 42.0 225 18.0 8.4 - 5.0
15. IISR AlleppeySupreme 35.4 210 19.3 6.0 16.0 -
16. IISR Kedaram 34.5 210 18.9 5.5 13.6 -
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26Financing Agriculture
District. He found that the marketingorganisation in Sangli is functioning wellin spite of speculation. But the cultivationof turmeric is labour intensive and wherelabour supply is scarce, there it is notprofitable. For this a minimum pricepolicy or price according to costs shouldbe brought under implementation.
Y. Eswara Prasad (1989) studied the priceresponse analysis of Turmeric in GunturMarket. The main objective of the studywas to analyses the patterns of arrivalsand prices of turmeric. The arrivals in thepost-harvest period increase theavailability in the market resulting in thelowering prices. A trend in arrivals ofturmeric bulbs was testimony to thedominant and growing stature of theGuntur market. But prices have neitherincreased nor decreased on a long termbasis and this aspect needs closerexamination.
Srinivasan (1990) studied the Marketingof turmeric (with special reference toPeriyar District, an attempt was made toanalyse the working of the regulatedmarket, the market arrivals of turmeric,the conditions of turmeric cultivation andits implication and to examine theintegrations of markets in India withspecial reference to Erode, Duggirala andBombay. It was revealed that the arrivalsof turmeric into Erode as a whole. Thecultivation expenditure and marketingcost varied directly with area underturmeric cultivation. It was alsoconcluded that the whole-sale prices ofturmeric at Erode, Duggirals and Bombayshowed conspicuous differences becauseof transport and other factors influencingmarketing and production.
Y. Radha (1994) studied the price analysisof turmeric in different markets ofAndhra Pradesh. Price analysis ofturmeric was taken with the mainobjective of studying the trend inmonthly price as well as seasonalfluctuations in whole sale prices. Threemajor agricultural market committeesviz., Duggrila, Nizamabad and Cuddapahwere selected for which monthly averagewhole sale prices were collected over aperiod of 11 years from 1983-84 to1993-94. Seasonal variation wasobserved to be highest during themonths of November in Duggirla andNizamabad market but during Decemberin Cuddapah market. The pricemovement in one market is influenced
by movement in other markets andturmeric prices are closely associatedbetween these markets.
B.B. Singh (1995) studied the pricespread of turmeric marketing in Bihar andAndhra Pradesh. A temporal and spatialanalysis; Agricultural produce marketSamastipur, which is the most importantturmeric market of Bihar was selected.The results have been compared with thesimilar study conduct in Duggirala marketof Andhra Pradesh during the year 1987-88. It has been observed that marketingsystem of turmeric in the selected marketof Andhra Pradesh was more efficientthan the selected market of Bihar. Thetotal marketing margin in absolute termsas well as in terms of percentage ofconsumer’s price is very high in Biharmarket as compared to Andhra Pradesh.
It is suggested from the study themarketing system of turmeric in Biharneeds to be made efficient by shorteningthe trade channel and reducing the highretailer’s margin.
Scope of the Study
The findings of the study would help tounderstand, the problems faced by theturmeric growers in marketing ofturmeric in erode district.
Objectives of the Study
To identify the problems faced by theturmeric grower in marketing of turmeric
This study is an empirical research basedon the survey method. The study is basedon primary and secondary data. The
required primary data has been gatheredfrom the respondents with the help of awell structured and pre-tested interviewschedule. The necessary secondaryinformation was collected from variousjournals, magazines, news paper, booksand websites.
Sampling Design
For the purpose of the study a multistagerandom sampling technique wasadopted.
There are fourteen taluks in Erode Districtin which Gobichettipalayam Taluk is thesecond largest taluk under turmericcultivation. So, Gobichettipalayam talukwas selected which constitutes theuniverse for this study.
Selection of Block
The present study is confined toGobichettipalayam Taluk having threeblocks namely Gobi, Nambiyur andThookanaikanpalayam. Out of thesethree blocks, Gobichettipalayam blockwas selected.
Selection of Growers
The sample size of present study is 200.They were selected by adoptingconvenience sampling technique.Gobichettipalayam Block has 20Panchayat Villages. From each village 10sample respondents were selected.
Constraints In Marketing OfTurmeric: Ranking Analysis
The problem having highest mean valueis considered to be the most important.
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27Financing Agriculture
Table no: 1 discuss the ranking analysisfor finding out the marketing problemsfaced by the turmeric growers.
The table no:1 indicates that the forcedsales with the mean score of 6.92,followed by lack of awareness aboutmarket information 5.80, followed price
followed by market fees with the meanscore of 4.94 and followed by delay inpayment with the mean score of 4.72.
It is concluded that the “Forced Sales” isan important marketing problems facedby the turmeric growers.
Findings of the Study
S.No Reasons Total Score Mean Value Rank
1 Delay in payment 472 4.72 X
2 High commission charges 564 5.64 IV
3 Low price 528 5.28 VII
4 Price fluctuation 568 5.68 III
5 Lack of awareness aboutmarket information 580 5.80 II
6 Forced sales 692 6.92 I
7 High cost of transport 504 5.04 VIII
8 High Market fees 494 4.94 IX
9 High cost of storage 556 5.56 V
10 Weighing problem 552 5.52 VI
Table No: 1
Scale And Score Values Of Marketing Problems Faced By The TurmericGrowers
weighing problem, low price, cost oftransport, high market fees and delay inpayment.
It is concluded that the forced sales isthe most important problems faced bythe turmeric growers So, to adopt thefacilities in the market by way of fastestgrowing technologies.
Suggestions of the Study
• It is found that ‘Forced Sales’ is themajor marketing problem of turmericgrowers. It is also found from thestudy that indebtedness and lack ofstorage facilities are the importantreasons for forced sales.
Hence it is suggested that interestfree loans may be offered to theturmeric growers and additionalstorage facilities may be provided bythe Government in the vicinity of theturmeric growers.
• It is identified that the farmers arenot having enough sources to knowthe market information about theprice of turmeric.
In this regard the Government maytake necessary steps tocommunicate the market informationabout the price through variousmedia.
• With intention to reduce labourintensity it may be suggested thatdrip irrigation may be followed forwhich liberal monetary support maybe extended by the government.
*K.M. Deepa, Assistant professor incommerce, Gobi Arts and ScienceCollege, Gobichettipalayam, Tamil Nadu
It is found that ‘ForcedSales’ is the major
marketing problem ofturmeric growers. It is alsofound from the study thatindebtedness and lack ofstorage facilities are the
important reasons forforced sales
fluctuation with the mean score of 5.68,followed by high commission chargeswith the mean score of 5.64, followedby high cost of storage with the meanscore 5.56, followed by Weighingproblem with the mean score of 5.52,followed by low price with mean scoreof 5.28, followed by high cost oftransport with the mean score of 5.04,
To analyse the problem which is the mostimportant factor simple ranking analysishave been applied. It is found that forcedsales is the foremost important marketingproblem faced by the turmeric growerswhile marketing their turmeric, followedby lack of awareness about marketinformation, price fluctuation, highcommission charges, high cost of storage,
MARKETING
Invasive Alien Species and its Impacton Soil, Water and EnvironmentBy P. Dey*
INVESTIGATION
28Financing Agriculture
International Union for Conservationof Nature and Natural Resources(IUCN) defines Invasive Alien Species
as an alien species which becomesestablished in natural or semi-naturalecosystems or habitat, an agent ofchange, and threatens native biologicaldiversity. These invasive species arewidely distributed in all kinds ofecosystems throughout the world, andinclude all categories of living organisms.They are non-natives and eitherdeliberately or accidentally introduced innew habitat causing dramaticenvironmental changes that lead tomajor decline in native population. Theyhave the capacity to alter hydrology,nutrient mining, and can alter gene poolthrough hybridisation.
Invasive species are good at exploitingbare soil and empty niches. Being non-natives they infest natural ecosystems,including forest, range lands, andpastures and dreaded ones can transformdiverse and productive ecosystem intosterile land. The global economic loss byinvasive alien species including cost ofcontrol has been estimated at about Rs63,00,000 crore rupees per year. Oneway to avoid invasive species is to choosethe ones that are native to the area.Natives often are adapted to a specificenvironmental niche, and have naturalcontrols that keep them in balance.Invasive species, on the other hand, aretolerant against environmental extremesand possess greater flexibility for survivalin wide range of conditions with high
water, light and nutrient use efficiencies.Some of the invasive species also exhibitfire resistance besides better competitiveability and allelopathy.
Causes of invasion
Land disturbance particularly by grazing,mining, urban development etc. whichcauses removal of vegetation anddisturbs soil generally promote invasivealien species. Absence of predators andparasites in new found habitat thatotherwise kept invasive alien speciesunder control in native habitat, also helpsin advancing invasive alien species. Landdevelopment such as fragmentation,corridors through undisturbed vegetationhelps enabling the spread of invasivespecies. Global change such as elevated
28Financing Agriculture
INVESTIGATION
CO2 level due to greenhouse effect,
climate change also promotes invasivealien species. The present era ofglobalisation and open market economyhas accelerated the influx of invasivealien species. Many of these invasivespecies have been involved in disastrousecological impacts. Any invasionundergoes three distinct phases of arrivalin new habitat, establishment followedby rapid spread in new found habitat.Each of these three phases of invasionscan be managed by three differentapproaches of quarantine, eradicationand containment.
Global Action against InvasiveAlien Species
In 1996, concern that invasive speciesmight be one of the most significant“negative externalities” of globalizationbrought 78 countries and numerousinternational and intergovernmentalorganizations together at the “TrondheimConference.” This meeting, sponsoredby Norway and the United Nations, wasthe first global effort to assess the impactof invasive species on the environment.Participants concluded that:
• The impact of invasive species is“immense, insidious, increasing, andirreversible.” In other words, everycountry has been impacted byinvasive species, the patterns andtrends follow that of globalisation,and as long as we engage ininternational trade, travel, andtransport we’ll need to manage thisproblem;
• Aside from climate change, invasivespecies are the most significant threat
to the environment worldwide.Developing countries will be severelyimpacted, particularly Small IslandDeveloping States (SIDS); and
• A global plan and strategy is urgentlyneeded to address the problem.
In 1997, three international organisationscame together with a commitment toshare their expertise and other resourcesin order to address the scientific andtechnical aspects of the problemsidentified in Trondheim. The WorldConservation Union (IUCN), CABInternational (CABI), and the ScientificCommittee on Problems of theEnvironment (SCOPE) formed the GlobalInvasive Species Programme (GISP). GISPis a coalition of scientific and technicalexperts
Invasive Species of India
Invasive alien species of plants/animals/microorganisms are as equally ancient ashuman civilisation, and are ongoingchronologically indistinguishable by man.However, biological invasions have latelybecome one of the major global issuesof concern since June 1992 soon afterthe UNCED’s Earth Summit held in Riode Janeiro, Brazil. It was estimated thatabout 40 percent of the species in theIndian flora are alien, of which 25 percentare invasive in nature. Partheniumhysterophorus, first report in 1951 fromMaharashtra was introduced from
Tropical America and presently hasstretched throughout the length andbreadth of India. Lantana camara wasintroduced in 1809-10 from Tropical andsubtropical America has reached insubmontane regions of the outerHimalaya to southernmost part of India.Eichornia crassipes was introduced in1914–16 from Brazil has extended largearea of water bodies of India. Mikaniamicrantha is rather neo-tropical origin buthas extended natural forests, plantations,agricultural systems in northeast andsouthwest India. Other invasive speciesof India include Ageratum conizoides,Cytisus scoparius, Eupatoriumadenophorum, Eupatorium odoratum,Parthenium bysterophorus.Eutrophication of water bodies by waterhyacinth is a major invasive species ofaquatic system. Carrot grass is anothermajor invasive species causing economicloss to many agricultural crops.Chromolaena is a invasive climber forNorth-East Himalaya and Western Ghatregion. Invasive insect like coffee berryborer also caused major economicdamage. Microbial invasive speciescausing major economic damage includebanana bunchy top virus, turnip stripevirus, potato wart (a fungal diseasecaused by Synchytrium endobioticum)and golden nematode (Globoderarostochiensis). In the fishery sector,African catfish, big head carp, tilapia etc.are invasive species which were
Carrot grass is anothermajor invasive species
causing economic loss tomany agricultural crops.
Chromolaena is ainvasive climber for
North-East Himalaya andWestern Ghat region
29Financing Agriculture
30Financing Agriculture
INVESTIGATION
introduced either deliberately oraccidentally but all found to pose greatthreat to the native fishes.
Impacts of invasive species onbiodiversity
• Loss of biodiversity due to captureof habitat by IAS
• Extinction of native animal species bypredation
• Loss of biodiversity due to increasedfire incidence following exotic grassinvasion
• Reduced abundance of threatenedand endangered species
Impacts of invasive species on soil andwater
• Increased soil erosion
• Increased incidence of flooding insome situation
• Increased water use, reduction inwater table
• Changes in soil chemistry, e.g., saltaccumulation
• Changes in soil microorganisms, e.g.,reduced mycorrhizal association withmustards
• Loss in productivity
Impacts of invasive species onenvironment
Some environmental issues are welldocumented and flagged as theimpacts of alien invasive species. Themovement of people, commodities andtheir conveyances throughinternational trade has augmented thedanger of transmit of these unwantedorganisms. Although many non-nativespecies has been proved to providegreat benefits to society, many othersafter establishment cause significantand often irreparable damage to thenative ecosystems beside negativeeconomic consequences in the newfound habitat. Invasive species can alsocause dramatic ecological changes dueto landscape transformations thatreduce the adaptabil ity andcompetitiveness of more desired nativespecies. Such transformation can becaused by the disproportionate use ofresources by invasive species likeincreased ability to capture light, usewater, uptake nutrients.
Mechanism of Invasiveness
Invasive species including micro-organisms, plants and animals act as keythreat to the functioning of agro-ecosystem although the mechanism isnot fully understood. One main reasonis that exotic species are too abundantand dominant even in poorly fertile soiland disruptive to the other native speciesreducing their variability. Majority of thestudies have focused on invasive plantsand animals, although few haveconsidered the effects of invasivemicrobes, or interactions of invasive plantand animal species with microbialcommunities.
Invasive plants, animals and soil micro-organisms have profound effects on theabundance of native species, theirdiversity and ecosystem functioning.Invasive plants and animals can havemajor effects on microbial decompositionin soil. Aggressive invasion of a nutrient-demanding, rapidly decomposable, andinvasive plant exert large impacts on soilmicrobial decomposers. The study ofmicrobial ecology and biological invasionhas shown that some plant speciesaccumulate pathogens quickly andmaintain low densities as a result of theaccumulation of species-specificpathogens, whereas others accumulatespecies-specific pathogens more slowly
Although many non-native species has beenproved to provide great benefits to society, manyothers after establishment cause significant and
often irreparable damage to the nativeecosystems beside negative economic
consequences in the new found habitat
31Financing Agriculture
INVESTIGATION
and do not experience negative feedbackuntil plant densities reach high levelsindicating differential abilities of plantshave to influence their abundance bychanging the structure of their soilcommunities, and that this is animportant regulator of plant communitystructure.
Modus Operandi to CheckInvasive Species
Avoid using known invasive species:This is first and foremost principal ofavoiding invasive species. For this, a listof invasive species may be widelycirculated through media for awarenessof general public.
Minimising landscape disturbance:Invasive species thrive well on bare soiland disturbed ground where the nativeplant/animal/microbial community hasbeen displaced. Protection of healthynative species is the key to controlinvasive species.
Judicious use of inputs: Many studieshave shown that high nitrogen levelsprovide an advantage to invasive speciesthat are better adapted to using plentifulnutrients for rapid growth andestablishment as compared to nativespecies. Soil test based nutrientapplication in conjunction with manureis important; slow release of nutrientfrom manures favours native species.
Regular monitoring of land use plan:All land use plans need to be monitoredregularly and invasive species need to be
checked for their removal. Scouting atregular interval helps in preventingspread of invasive species. Particularly,seeding need to be checked ether byuprooting or by adopting other measureslike spot application of herbicide, ifnecessary. Removal of invasive specieswhen the population is low helps nativespecies to occupy the empty niche.
Future Safeguard Plan andResearch Needs
• Build capacity in terms of humanresource development and
technology transfer to addressinvasive alien species.
• Promote community participationthrough awareness generation andinvolvement in efforts to address IASthrough promotion of Public-PrivatePartnership (PPP) approach.
• In line with USDA Invasive SpeciesInformation Centre, NationalInvasive Species Information Centremay be formed for dissemination ofknowledge.
• Early warning system against invasivealien microbial species
• Spatial stochastic modelling to mapintroduction and spread risks ofinvasive alien species.
• Hazard analysis and critical controlpoint planning to preventunintentional introduction of invasivealien species.
• Integrating DNA bar-coding intodetection and surveillance programsfor invasive alien species.
• Exploiting Allee dynamics in themanagement of invasions.
• Risk analysis of invasive alien species.
*Dr. Pradip Dey, is a leading soil scientistworking as Principal Scientist in CentralSoil Salinity Research Institute, Karnal
32Financing Agriculture
SPOTLIGHT
Role and Application of MedicinalPlants in Enhancing IndigenousTraditional Knowledge
Beginning with the study of plantsused by the tribal people for foodand shelter, the study of traditional
knowledge now encompasses facets likeconservational practices used by thetribal communities, ethnopharmacology,ethnopharmacognosy and ethnobotany.
The technical knowledge on traditionalmedicines is considered to be one of themost vital parts of information for allmodern drug hunters. This is becausesuch information is taken as a lead in thevaluable category, in developingtherapeutic aids. Quite a good numberof examples can be cited where the plantproducts used by the present civilisedworld have been developed fromindigenous knowledge.
This paper deals with the topic as to howthe tribals have been utilising the plantwealth of forests of Rajasthan, in thevicinity of their villages, for their ownwelfare. This has really widened thehorizon of knowledge since the villagepeople have been using, either thecomplete plants, their specific organs forcuring a series of 15 kinds of ailmentslike fever, cough, skin diseases,cardiovascular problems, gastrointestinaltroubles, and the problems of the maleas well as the female reproductivesystems etc.
Rich Heritage
India has a rich heritage of indigenousknowledge and practices of healing and
care. People’s narratives in stratifiedvillages throw light on such knowledgeand practices that had guided their livesearlier. The indigenous health culture –related knowledge and practices, whichwas socially knit into people’s daily liveseven till mid-20 Century was laterthreatened by aggression of‘development’ and profit makingmarkets. Traditional knowledge onmedicinal plants includes information,whether documented or non-documented, of the different kindsand functions of plants developed inor known since ancestral times butsubjected to contemporaryimprovements and adaptations.
The utilisation and management oftraditional knowledge on medicinalplants follows customary laws enforcedby a collective of elders who exerciseleadership in a community or tribe.
Women played a central role in keepingfamilies and communities healthy at largeby providing preventive and curativecare. There was a time when they werethe sole manager of childbirth. Importantroles that women played in biological andsocial reproduction have been ignoredand marginalised in time. They protectedand transferred their knowledge andpractices to the following generations bysystematically and skillfully integratingthese into the processes of socialisation.
The villages have grown and the socio-economic organisations have changedover the decades. Over the last twodecades, there have been intensedebates on whether health is a socialservice or product bred by the rapidcommodification of the knowledgeintensive drug industry. At the same time,
The Study Makes Specific Focus on Tribals in Rajasthan
By Dr. Harjeet Singh, Manoj Kumar Paliwal,and Punam Paliwal*
33Financing Agriculture
SPOTLIGHT
within the knowledge health medicinesector, there is an emerging trendtowards the consumption of herbalhealth products as alternative treatmentsto modern. Ayurveda is not an exceptionunder this journey while many biggestayurvedic drug companies incontemporary India are aggressivelymarketing various health products andlaxatives known as herbal and naturalremedy and have no side effect.
Ayurveda, whose history goes back to5000 BC., is one of the ancient healthcare systems. The Ayurveda wasdeveloped through daily life experienceswith the mutual relationship betweenmankind and nature. The ancient text ofAyurveda reports more than 2,000 plantspecies for their therapeutic potentials.Besides Ayurveda, other traditional andfolklore systems of health care weredeveloped in the different time periodsin Indian subcontinent, where more than7,500 plant species were used.
According to a WHO estimate, about 80percent of the world population relies ontraditional systems of medicines forprimary health care, where plants formthe dominant component over othernatural resources.
Wider Use
Several drugs viz. reserpine, quinine,digoxin, ephedrine, cocaine, emetin,
khellin, colchicine, artemisinine,gugulipid etc. have been derived fromthe plants which pay importantethnomedical role in tribal societies.Lobelia inflata smoked earlier by Indiantribal people, is now used as a substitutefor Tobacco. Podophyllum peltatum,formerly used by tribals to remove skinwarts is now used in treating uterinewarts in modern system of medicine(Singh and Pandey, 1998). Moreover, outof 120 active compounds currentlyisolated from higher plants and used inmodern medicine, 74 per cent havepositive correlation between the moderntherapeutic use and the traditional useof the plant from which they werederived or discovered. Several other tribalmedicine have also been incorporated inthe organised system of medicine andsome more miraculous medicine knownto the tribal communities are still secretsof certain families.
Tribal Welfare
Tribal, Adibasi, Girijan, Vanvasi, Janjati,Vanyajati, Adim jati, Aboriginal etc. arethe words synonymous to each other.Such distinct ethnic groups arementioned as Scheduled Tribes, in Article342 of Constitution of India.
India has been rightly called as a“Melting Point” of races and tribes. It isone of the richest countries inethnomedicinal and biodiversity point ofview due to the presence of multiethnicgroups of ancient lineage. The countrypresents a colorful mosaic of about 500tribal communities representing 7.76 percent of the total population, spread over19 per cent of total area of the nation(Singh & Pandey, 1998).
Their entire style of the life revolvesaround the forest. Their knowledgeabout medicinal usage of plants hassurvived only by oral communicationsfrom generation to generation. The fieldstudies among such societies foradvancing our knowledge of medicinalplants are of great importance.
All in all, through our above attempts,we fully succeeded in derivinginformation especially as to how theyhave been utilising the plant wealth ofthe forest in the vicinity of their villages,for their own welfare. This has reallywidened the horizon of the knowledgesince the village people have been using,either complete plants or their specific
organs for curing a series of 15 kinds ofdiseases Table-1 like Fever, Cough, Skindiseases, Cardiovascular problems,Gastrointestinal troubles, Problems ofmale and female reproductive systemetc.
Along with Botanical names, Common/Vernacular names and Family nameTable-2 revealed that different parts ofthe plants such as the roots and otherunderground parts, flowers, flower buds,fruits, seeds, gums, resins are variouslyutilised by the tribal people for curing theailment.
Table 2 is segregated disease wise in todifferent sections. As much as 129 waysare listed which tribes of this region usingapproximately 77 plants species arebelonging to 45 families of Angiosperm.Along with 40 families of Dicotyledons,member species of 5 families ofMonocotyledons viz. Arecaceae,Cyperaceae, Liliaceae, Musaceae andPoaceae are used by tribal people for thetreatment of diseases. It is very clear fromthe Table that approximately 20 plantspecies of both Dicot and Monocot areconsumed by tribes for the treatment ofmore than one kind of disease. Specieslike Allium cepa, A. sativa, Acacia nilotica,Albizia lebbek, Ficus benghalensis, F.religiosa, Terminalia chebula arecommonly used for treating more thanfour type of ailment, hence valued byBhopas or persons practicing Indigenous
Sr. Ailments No. ofno. species
beingused
1 Fever 052 Cough 053 Eye Ailment 054 Ear troubles 035 Dental troubles 056 Tuberculosis 057 Skin Diseases 148 Brain related problems 089 Stomach Diseases 0910 Piles 0611 Heart Diseases 0312 Male Reproductive system 1913 Female Reproductive System 1914 Remedies against Poison
Consumption 1615 Diabetes cure 06
Table-1: Use of Plants forMedical Purposes
34Financing Agriculture
Sr. Botanical Names Families Common/ Parts UsedNo. vernacular Names
Fever1 Cordia dichotoma var.wallichii (C.) Maheshwari Ehretiaceae Lasora Bark2 Cynodon dactylon (L.) Pers Poaceae Dub Entire plant3 Moringa oleifera Lamk. Moringaceae Sahjan Roots4 Nyctanthes arbor-tristis L. Oleaceae Harsingar Leaves5 Terminalia chebula Retz. Combretaceae Harad Fruit powder
Cough6 Adhatoda vasica Nees Acanthaceae Vasak, Arusa Leaves7 Allium sativum L.. Liliaceae Lahsun Extract of bulb8 Cordia dichotoma wallichii (C.) Maheshwarii Ehretiaceae Lasoda Fruit with seeds9 Ficus religiosa L.. Moraceae Peepal Fruits10 Terminalia belirica (Gaertn.) Roxb. Combretaceae Bahera Fruit, seed-coat
Eye Ailments11 Acacia nilotica (L.) Willd. Mimosaceae Babool Leaves12 Albizia odoratissima L..f. Mimosaceae Kala siris Leaves13 Allium cepa L.. Liliaceae Pyaj Extract of bulb14 Boerhaavia diffusa L.. Nyctaginaceae Punarnava Root15 Ficus benghalensis L.. Moraceace Burh, vat Latex
Ear Troubles16 Allium cepa L.. Liliaceae Pyaj Extract17 A. satvium L.. Liliaceae Lahsun Extract of bulb18 Acacia nilotica (L.) Willd. Mimosaceae Babool Leaves
Dental Troubles19 Albizia lebbek (L..) Benth. Mimosaceae Kala siris Leaves20 Euphorbia neriifolia auct, pl. non. L.. Euphorbiaceae Thuhar Chhota Extract of entire
plant21 Ficus benghalensis L.. Moraceae Bargad, Bad Latex, Fruit22 Helianthus annuus L.. Asteraceae Surajmukhi Seed oil23 Syzygium aromaticum (L.) Merr. & Perry Myrtaceae Laung Bud, Clove oil
Tuberculosis24 Adhatoda vasica Nees Acanthaceae Vasak, Arusa Leaves25 Allium sativum L.. Liliaceae Lahsun Bulb26 Dendrocalamus strictus (Roxb.) Nees Poaceae Laathibans Alcoholic extract27 Elettaria cardamomum Maton Zingiberaceae Chhoti elaichi Alcoholic extract28 Tinospora cordifolia (Willd.) Miers. ex Hook.
F. & Thoms. Menispermaceae Giloe Alcoholic extract
Skin Diseases29 Albizia lebbek (L.) Benth. Mimosaceae Siris Bark30 Allium cepa L.. Liliaceae Pyaj Extract of Bulb31 A. satvium L.. Liliaceae Lahsun Extract of bulb32 Annona squamosa L.. Annonaceae Sharipha Leaves33 Azadirachta indica A. Juss. Meliaceae Neem Leaves, Bark34 Buchnania lanzan Spreng. Anacardiaceae Chironji Seeds35 Crotalaria juncea L.. Fabaceace Sanai Leaves36 Cynodon dactylon (L..) Pers Poaceae Doob Entire plant37 Dalbergia sissoo Roxb. Fabaceace Sheesham Oil,Leaves38 Datura stramonium L.. Solanaceae Dhatura Fruits39 Ficus religiosa L.. Moraceae Peepal Bark40 Mangifera indica L.. Anacardiaceae Aam Leaves41 Nicotiana tabacum L.. Solanaceae Tambaku Leaves42 Terminalia chebula Retz. Combretaceae Harad Fruits, Leaves
Brain Related Diseases43 Acorus calamus Linn. Araceae Bach Powder44 Albizia lebbek (L..) Benth. Mimosaceae Siris Seeds
Table-2: Statement of the Utilisation of the various Plant Species for Curing Ailments
SPOTLIGHT
35Financing Agriculture
45 Bacopa monnieri (L.) Pennell Scrophulariaceae Nira-Brahmi Plant extract46 Cynodon dactylon (L..) Pers. Poaceae Doob Entire plant47 Evolvulus alsinodes Convolvulaceae Shankh-pushpi Extract48 Moringa oleifera Lamk. Moringaceace Sahjan Flower buds49 Pongamia pinnata (L..) Pierre Fabaceace Karanj Seeds50 Terminalia chebula Retz. Combretaceae Harad Fruits, Seeds
Stomach Diseases51 Acacia nilotica (L..) Willd. Mimosaceae Babool Bark, Seeds52 Albizia lebbek (L..) Benth. Mimosaceae Siris Extract of leaves
and twigs53 Boerhaavia diffusa L.. Nyctaginaceae Punarnava Root54 Cinnamomum tamala (Buch. Ham.) Lauraceae Tejpat Bark55 Euphorbia tirucalli L.. Euphorbiaceae Sehund Latex56 Ficus religiosa L.. Moraceae Peepal Aqueous extract of
the bark57 Operculina turpethum (L..) Silva Manso Convolvulaceae Nisoth Root, bark58 Terminalia belirica (Gaertn.) Roxb. Combretaceae Baheda Fruit, Seed59 T. chebula Retz. Combretaceae Harad Fruit, Seed
Piles60 Allium cepa L.. Liliaceae Pyaj Bulb61 Cynodon dactylon (L..) Pers. Poaceae Doob Stem62 Ficus benghalensis L.. Moraceae Vat, Bargad Latex, aerial roots63 Plumbago zeylanica L.. Plumbaginaceae Chitrak Root, milky juice64 Pyrus pyrifolia (Burm.F.) Nakai Rosaceae Nashpati Fruit pulp65 Thespesia populnea (L..) Soland. ex. Corr. Malvaceae Paras Peepal Seed, Young buds,
flowers
Heart Diseases66 Bacopa monnieri (L..) Pennel Scrophulariaceae Nira-Brahmi Whole plant
extract,leaves67 Terminalia arjuna (Roxb.) W. & A. Combretaceae Arjun Bark68 Tinospora cordifolia (Willd.) Miers. ex Hook.
F. & Thoms Menispermaceae Giloe Stem extract
Ailments of the Male Reproductive system69 Acacia nilotica (L..) Willd. Mimosaceae Babool Bark, Thorn70 Acorus calamus Linn. Araceae Bach Rhizome71 Albizia lebbek (L..) Benth. Mimosaceae Siris Bark72 Allium cepa L.. Liliaceae Pyaj Bulb73 Asparagus racemosus Willd. Liliaceae Shatavar Root Juice74 Butea monosperma (Linn.) Taub. Fabaceace Palash, chhola Gum75 Catharanthus roseus (L..) G. Don Apocynaceae Sada Vahar Roots76 Ceiba pentandra L.. Bombacaceae Semal Roots77 Chlorophytum borivilianum Sant. Liliaceae Safed musli Rhizome78 Curculigo orchiodes Geartn. Hypoxidaceae Kali musli Stem79 Ficus benghalensis L.. Moraceae Vat, Bargad Bark,Latex80 F. religiosa L.. Moraceae Peepal Bark,Latex81 Hygrophila auriculata (Schum.) Acanthaceae Leaf, Seed, Root82 Mucuna prurita Hook. Fabaceace Kaunch, Kavanch Seed83 Peganum harmala L.. Zygophyllaceae Gokhru Seeds84 Phoenix sylvestris (L..) Roxb. Arecaceae Khajuri Fruits85 Rhinacanthus nasuta Kurz Acanthaceae Palak juhi Leaves, roots,
seeds86 Tamarindus indica L.. Caesalpiniaceae Imli Pulp of the fruit87 Terminalia chebula Retz. Combretaceae Harad Fruit
Ailments of the female Reproductive system88 Acacia nilotica (L..) Willd. Mimosaceae Babool Bark powder, Seed
powder89 Acorus calamus Linn. Araceae Bach Stem extract90 Anogeissus pendula Edgew Combretaceae Dhaura,Dhav Bark91 Azadirachta indica A. Juss. Meliaceae Neem Gum of the stem
SPOTLIGHT
36Financing Agriculture
92 Butea monosperma Taub. Fabaceace Palash, Chhola Gum of the stem,Bark
93 Crocus sativus L.. Iridaceae Kesar Petal, steman94 Crotalaria juncea L.. Fabaceace Sanai Seeds95 Cyperus scariosus R. Br. Cyperaceae Nagarmotha Rhizome96 Phyllanthus embilica Linn. Euphorbiaceae Anola, Amla Fruit97 Ficus benghalensis L.. Moraceae Vat, Bargad Arial root, young
leaves98 Ficus glomerata Roxb. Moraceae Gular Fruit99 F. religiosa L.. Moraceae Peepal Fruit100 F. rumphii Blume Moraceae Pakhar Fruit101 Musa paradisiaca L.. Musaceae Kela Fruit102 Drypetes roxburghii Wall. Euphorbiaceae Putranjiv Bark103 Tectona grandis L..f. Verbenaceae Sagwan Secondary wood104 Terminialia belerica (Gaertn.)Roxb. Combretaceae Behda Fruit,Seed105 T. chebula Retz. Combretaceae Harad Fruit,Seed106 Tribulus terrestris L.. Zygophyllaceae Gokhru Fruit,Leaves,root
Remedies against Poison Consumption107 Albizia odoratissima Benth. Mimosaceae Kali siris Gum of the stem108 Allium cepa L.. Liliaceae Pyaj Bulb extract109 Brassica juncea( L.) Gaertn. & Coss. Brassicacaeae Rai Seeds110 Butea monosperma Taubert. Fabaceace Palash Stem gum111 Cordia dichotoma wallichii (C) Maheshwari Ehretiaceae Lasoda, Labheda Fruit112 Gossypium hirsutum L.. Malvaceae Kapas Seeds113 Heliotropium indicum L.. Boraginaceae Hatta Juri114 Leptadenia pyrotechnia (Forsk.) Dence Asclepiadaceae Khip Stem115 Malus pumila Mill. Rosaceae Seb Fruit pulp116 Mangifera indica L. Anacardiaceae Aam Fruit pulp,Leaves117 Michelia champaca L. Magnoliaceae Champaca118 Piper nigrum L. Piperaceae Kali mirch Fruit119 Salvadora persica L. Salvadoraceae Pilu Leaf, Root,Fruit120 Sesamum indicum L. Pedaliaceae Til Seed, leaves121 Tephorsia purpurea (L.) Pers. Fabaceace Sarphonka Leaf, Leaf powder122 Tinospora cordifolia (Willd.) Miers. ex Hook.
F. & Thoms Menispermaceae Giloe Aerial stem extract
Cure for Diabetes123 Aegle marmelos (L.) Corr. Rutaceae Bael Fruit pulp124 Azadirachta indica A. Juss. Meliaceae Neem Fruit, seed125 Ficus glomerata Roxb. Moraceae Gular Fruit126 Gossypium hirsutum L. Malvaceae Kapas Seed127 Pterocarpus marsupium Roxb. Fabaceace Bijasal Gum, Flower,Seeds128 Syzygium cumini (L.) Skeels Myrtaceae Jamun Fruit, seed
system of medicine in these Districts ofRajasthan.
It is also observed during the screeningof results that these tribal people aremore aware with the diseases relatedwith skin, male reproductive system,female reproductive system andpoisoning and the nature as well as utilityof plants growing in their vicinity, henceusing an array of plant species for thesediseases.
People-Centric Research
Any research on indigenous knowledge,therefore, must focus on people’sassertions and aspirations for national
development. Regulatory forestmanagement strategies do notcorrespond any longer to the politicalreality. Social and political processes atthe level of communities reflectingdifferent interests in forests require moreattention in policy analysis. Nationalregulation can only be successful if theyare meaningful to and accepted byindigenous people. At the global level,forests have become part of worldwideconcern and subject to political effortsin order to develop a more consistentcooperation on their management.
It could be concluded with the aboveobservations that the tribal population
living in and around the forest, which isheavily depended upon forest for its dailyneed viz. fuel wood, food, fodder etc., isable to maintain its health and problemsrelated with diseases with their timetested wealth of information.Their entirestyle of the life revolves around theforest. Their knowledge about medicinalusage of plants has survived only by oralcommunications from generation togeneration. The field observationsamong such societies for advancing ourknowledge of medicinal plants are ofgreat importance.
*Dr. Harjeet Singh is an officer withAgriculture Finance Corporation Ltd
SPOTLIGHT
37Financing Agriculture
The recently launched SaffronMission in Kashmir is expected togive a big boost to the crop saffron
farmers. In the light of the development,some reflections on the priced crop willbe appropriate.
In India the valley of Kashmir is famousfor saffron which is an important cashcrop. Since it is very expensive,unscrupulous dealers often adulterate it.So one has to be very careful whilebuying saffron and should never buy itfrom roadside hawkers.
In order to understand commercialsaffron, it is important to know the make-up of the saffron plant. Commercialsaffron comes from the bright redstigmas of the Crocus Sativus. Thestigmas are the female part of the flower.In a good year each saffron crocus plantmight produce several flowers. Eachflower contains three stigmas which areonly part of the saffron crocus that whendried (cured) properly, becomecommercial saffron. Each red stigma islike a little capsule that encloses thecomplex chemicals that make up thesaffron’s aroma, flavour and yellow dye.In order to release these chemicals thethreads are to be steeped.
Saffron is native to Southern Europe butwas known to the ancient Greeks andRomans. Saffron was imported toEngland from the East many centuriesago, and was once grown extensivelyround Saffron Walden, in Essex, UK. Onesmoke-pervaded spot in the heart ofLondon still bears the name ‘Saffron Hill’.This herb is now cultivated inMediterranean countries, particularly inSpain, and also in Austria, France, Greece,England, Turkey, Persia, India and China.The La Macha belt of Spain is the largestproducer of saffron in the world andcontributes 80-90 percent of the worldsaffron production. In India thecultivation of saffron is confined toPampore and Kistwar areas of Jammuand Kashmir, extending to nearly 4000acres.
Nature of Saffron
Saffron is a small bulbous perennial plantwith the botanical name of Crocussativus Linn. The low growing plantgrows 15 to 25 cm high and has anunderground globular corm. It is mainlycultivated for its large, scented, blue orlavender flowers. The flowers of saffronplant have divided, orange colouredstigmas, which along with the style-topsyield the saffron of commerce. Theflowering period of saffron starts duringmiddle or late October and lasts only untilthe first or second week of November.However, the number of saffron flowersand the time of blooming in any year aredependent upon the temperatureprevalent in spring and autumn and uponthe amount of rainfall.
Saffron is known by different names invarious Indian languages. In Sanskrit, theplant is named as Keshara, Kunkuma,Aruna, Asra and Asrika. The Hindi andPunjabi names of the plant are Zaffranand Kesar and it is called as Zaffran inBengali. The Gujarati speaking people
know the plant as Keshar, while inKannada it is called as Kunkuma Kesari.In Kashmiri, saffron is known as Kong andthe Marathi speaking people call it asKesar and Kesara. While it is called asKungumapu in Tamil, the Telugu nameof saffron is Kunkumapuva. In Urdu it ispopular as Zaffran and Jafranekar.
Cultivation
The state of Jammu & Kashmir is the
place where saffron is predominately
cultivated in India. In fact, Kashmir is
considered one of the three prominent
cultivating places of saffron all over the
world. The state of Himachal Pradesh is
also counted among the premium
cultivating places of saffron in India. The
ideal environment for cultivation of
saffron is cool dry climate and rich soil
with excellent drainage and organic
content. India is one of the premium
producers and exporters of top-grade
‘coupe‘ saffron around the world.
Saffron is also used quite extensively forself-consumption in different parts of
Saffron Mission to ImproveFarmers Lot
ANALYSIS
38Financing Agriculture
India. There are three grades of saffronavailable in Indian market and they areknown as Shahi Saffron, Mogra saffron,and Lachha Saffron.
There are in general two main types ofsaffron spices. One is the saffron that isused to add colour and the other type ofsaffron is used to give both the colourand the unique flavour of saffron.Spanish saffron and Iranian saffron makeup 80 percent of the world saffronproduction.
Uses
Saffron has many uses. In India, it isfrequently used for culinary andmedicinal purposes. In ancient period,the Kashmiri saffron was used as a fabricdye and for treating depression. Saffronstigmas were soaked in water to yield agolden-yellow solution and were thenused as a fabric dye. The usable saffronsare produced by drying the stigmas andpart of the styles of the purple autumncrocus. Saffron has a bitter taste and apenetrating aromatic odour. It can beadded to various food items forcolouring, flavouring and also for taste.In fact, saffron is considered one of theoldest and most expensive spices in theworld. For its unique aromatic feature,saffron is commonly used in preparingfood items like baked goods, cheeses,confectionaries, curries, liquors, meatdishes, and soups, etc.
In pharmaceutical industry 125 gram ofpure saffron essence is enough for
making 300 million sedative tablets.
As a therapeutically plant, saffron isconsidered an excellent stomach ailmentand an antispasmodic, helps digestionand increases appetite. It is also relievesrenal colic, reduces stomach-aches andrelieves tension. It used as a drug for flu-like infections, depression and as asedative for its essential oils. It is alsoconsidered that in small quantities itregulates women’s menstruation, andhelps conception.
Saffron is given to reduce fevers, crampsand enlarged livers, to calm nerves.In the western world it is used primarilyas a spice. But it is also discovering itsuses as a health tonic, which naturallydoes not have side effects. About 50 mgof Saffron dissolved in a glass of 200mlmilk and a spoonful of sugar makes avery tasty drink, which is also a healthtonic. A regular intake of this every dayfor a period of time enables the body tobuild resistance against a lot of commondiseases such as Asthma, Common coldsclaim Ayurvedic Practitioners. Butbeware; do not to expect it to act as amagic potion because it is essential tohave a regular intake for it to be effective.
a) Saffron in Western Medicine:
1) The Ebers Papyrus (Ca 1550 BC) hasmentioned it as an ingredient in caseof kidney problems
2) Due to the presence of crocetin itindirectly helps to reduce cholesterollevels in the blood
Persian invasion and colonisation ofKashmir probably started saffroncultivation in Kashmir. Kashmiri saffronwas marketed as a dye and treatmentfor melancholy. Buddlist monks in Indiaadopted saffron coloured robes afterthe death of Gautama Buddha. Around3rd century A.D, (probably), theChinese knew about saffron cultivationin Kashmir. Wan Zhen, a Chinesemedical expert reported that Kashmiripeople grew it to offer it to Buddha.
Saffron grows to a height of about 45cms. The flower blossoms in beautifulcolours. Each flower contains threestigmas. Reproduction is dependent onhuman assistance: the corms(underground bulb-like starch-storingorgans) must be manually dug up,broken apart, and replanted. A cormsurvives for only one season,reproducing via division into up to ten“cormlets” that eventually give rise tonew plants. The corms are small brownglobules up to 4.5 cm in diameter andare shrouded in a dense mat of parallelfibers.
Saffron contains more than 150 volatileand aroma yielding compounds. It alsohas many non volatile activecomponents. Its golden – yellow –orange colour is primarily the result ofa carotenoid pigment crocin (alphacrocin), that may comprise more than10 percent of dry saffron mass.
Saffron has a bittertaste and a penetratingaromatic odour. It can
be added to variousfood items for
colouring, flavouringand also for taste. In
fact, saffron isconsidered one of the
oldest and mostexpensive spices in the
world
Great Legacy
ANALYSIS
39Financing Agriculture
Government of India will look into theissue of smuggling of saffron fromother countries into India. This wasstated by Agriculture Minister SharadPawar on 27 October said that sincethis issue of saffron smuggling andimports without adequate duties hasbeen raised, we will look into thisserious matter. Pawar was replying toa at the Economic Editors’ Conferencein New Delhi on the government ofIndia’s policy in allowing saffronimports and not checking itssmuggling into the country.
Responding to the point that the priceslide of Kashmir saffron had seriouslyimpacted the livelihood of thousandsof farming families, B K Basu secretarydepartment of Agriculture andCooperation said that the SaffronMission Project launched in Jammuand Kashmir will help in checking theimports and the smuggling.
“We believe the Saffron Mission willhelp in improving productivity ofsaffron and the net area under itscultivation. That in turn will help tocheck the smuggling”, Basu added.
On the steps to be taken beyond theSaffron Mission project to curbsmuggling, Basu emphasised that“market forces will themselves takecare of the problem once the Missionis fully implemented. Kashmir’s saffronis not only a commodity but a heritage.It is the best saffron in the world, andwe accord high priority to its growthand progress”, he added.
Pawar said the Plan outlay for theAgriculture and allied sector hasincreased substantially from Rs.7,431crore in 2006-07 to Rs.19, 070crore in 2010-11, an increase of about156 percent.
Carbohydrates – 12 to 15 percent
Water – 9 to 7 percent
Polypeptides – 11 to 13 percent
Cellulose – 4 to 7 percent
Miscellaneous (Non – nitrogenus) –40 percent
Production of saffron
World production of saffron is 300tonnes per annum.
Saffron crocus Yield (kg per hectare)
Spain 6 – 29
Italy 10 – 16
Greece 4 – 7
India 2 – 7
Moroco 2 – 2.5
3) Two compounds in Saffron aresupposed to increase anti-bacterialand anti-viral physiological activity inthe body.
4) In the USA it was given to childrenin exanthematous diseases forpromoting eruptions.
5) Based on Urdang’s reports andrecords of Ancient and Medievalperiods indicate anti tumour & anticancerous activities.
b) Saffron in Eastern Medicine
In the East, saffron is as a medicinal cureand preventive. According to the CentralCouncil for Research in Ayurveda andSidhha (Ministry of Health and FamilyWelfare) it useful in
1) Curing Asthma Cough
2) Useful in treating Colds
3) For treating Alcoholism
4) To treat Acne and Skin Diseases.
5) Used in medicines that reduceinflammation
6) For treatment of enlarged Liver andinfection of Urinary Bladder andKidneys
7) As an ingredient in recipes useful inMenstrual disorders
8) For strengthening the heart and as arefrigerant for the brain
9) As a diuretic if soaked overnightin water and administered withhoney
10)Pounded with clarified butter (Ghee)it is used for treating diabeticpatients.
11) It can be use to make the gum pain,relax.
12)The mixture of saffron with olive oiluse for curing the hurt muscles.
Cosmetic Uses
Traditionally saffron is believed topromote fairness of the complexion. It iswidely used in cosmetics, especially infairness creams. It is an age-old beliefthat pregnant women give birth to ‘fair’babies, if they consume saffron.
Side Effects
As with any medication or herbalsupplement, side effects are possible withsaffron. Although some people assumethat natural products (such as saffron)are automatically free of side effects, thisis simply not the case. Remember, manypoisons and toxins are natural products.In most cases, side effects of saffron aremerely bothersome, although some canbe serious.
• An increase or decrease in appetite
• Drowsiness
• Nausea
Saffron is rightly called the magical herb.It has varied uses ranging from culinaryto medicinal and beauty and has beenhighly valued by man since ancient times.
*The Writer K.M.Deepa is AssistantProfessor in Commerce, Gobi Arts andScience College, Gobi, Tamil Nadu
The ChemicalComposition of Saffron
Check on SaffronSmuggling
ANALYSIS
40Financing Agriculture
The Union Agriculture Ministry will startdiscussions on decontrol with all thesugarcane-producing states, includingMaharashtra and Uttar Pradesh inNovember. Union Agriculture MinisterSharad Pawar stated that the allotmentfor sugar export would be decidedaround mid-November, once the preciseamount of country’s surplus is clearlydocumented.
Sharad Pawar has taken a supportivestand on sugar exports in line with thedemand of producers and mill ownersthat it to be brought under open generallicense (OGL). Pawar said time was ripefor this with global sugar prices aroundUS$693 a tonne and domestic sugarproduction estimated at 25 milliontonnes. He said he would ignore the
Sugar Decontrol Talks in November: Pawar
AGRI NEWS
opposition to exports and take a decision.
“Sugar prices in the global market arequite high and this is the right time forexports. I am of the view that cane farmersand mills should benefit from high prices,”Pawar was quoted in the press. The Centrehas allowed advanced licence exportobligation of about one million tonnes forexports. Exports under OGL were bannedin February 2009 in the wake of a fall insugar output to 14.7 million tonnes in2008-09. The 2009-10 output was 19million tonnes. Following a rise in sugarproduction this season, the NationalFederation of Cooperative Sugar and theIndian Sugar Mills Association havedemanded option for exports.
Mills say there was a mismatch of aroundRs 250 a quintal between the production
cost and the selling price. The realisationis estimated at Rs 2,450 a quintal whilethe production cost is Rs 2,700 perquintal. They say pressure on them willbe eased if they are allowed to export.
Pawar said he faced opposition when heallowed cotton exports. Those whoopposed cotton exports argued thatcotton mills would be forced to buy athigher prices. “However, due to cottonexports, farmers benefited and got Rs4,200 a quintal,” he said.
Addressing a gathering in Ahmadnagardistrict, the Union minister told millersto become more professional in carryingout operations while hinting that the timehad come for sugar decontrol and millersshould be ready to face globalcompetition.
Fertiliser firms may refrain from raisingprices during the ensuing Rabi season. Itis reported that the industry has agreedto observe status quo in di-ammoniumphosphate (DAP) and muriate of potash(MOP). Only complex fertilisers may seesome upward revision of prices. It mightbe Rs 10-15 a bag, which comes to Rs200-300 a tonne, according to sources.
The Centre has technically de-controlledprices of all non-urea fertilisers witheffect from 1 April as part of ushering ina nutrient-based subsidy (NBS) regime.That gives companies the liberty to fixfarm gate prices, based on supply-and-demand conditions and receipt of a fixedper tonne subsidy linked to theirproducts’ nutrient composition.
For the current Kharif season, firms hadhiked prices of DAP, MOP and variouscomplexes – containing differentproportions of nitrogen, phosphorous,potash and sulphur (N:P:K:S) – by Rs 600to Rs 700 a tonne. Even in the case ofurea – which is outside the purview ofthe NBS – the Centre increased themaximum retail price (MRP) from Rs4,830 to Rs 5,310 a tonne.
For 2010-11, the Centre has providedRs 49,980.73 crore towards fertilisersubsidy, as against Rs 52,980.25 crorein the preceding fiscal. According to thesources, the budget estimate mayovershoot primarily for two reasons. Thegood monsoon along with remunerativeprices for most crops has boosted
fertilizer demand. This year, totalfertiliser material consumption is likelyto go up by at least 10 percent to top58 million tonnes (mt) – 28 mt urea, 12mt DAP, 9-9.5 mt complexes, 5 mt MOP,3 mt single super phosphate and 0.5 mtof others.
Maenwhile, India’s fertiliser companiesmay receive Rs 1,400 crore from thefinance ministry. The ministry has givenan in-principle nod for this funding andthe clearance from Cabinet Committeeon Economic Affairs (CCEA) is awaited.This funding will be to compensate thefertilisers firms who failed to earn profitfrom bonds worth Rs 27,500 crore in2007-08 and 2008-09 fiscals issued bythe finance ministry.
Fertiliser Companies not to Hike Prices
41Financing Agriculture
The proposed food security proposal recommended by the National AdvisoryCouncil (NAC) to guarantee food grain to two-thirds of the country’s population,could bloat the government’s food subsidy spend by 26 percent to over Rs72,000 crore. This will be equivalent to over 1 percent of the gross domesticproduct. The food grain guarantee is part of the proposed National Food SecurityBill. This is just a conservative figure compared to the Rs 78,000 crore estimatedby Deutsche Bank in a recent research report. India’s food subsidy bill in 2009-10 was estimated at Rs 55,600 crore. Over and above this, the governmentwill have to bear the cost of supplying grain to the poorest sections of societyunder the Antyodaya Anna Yojna (AAY) and other welfare schemes.
The priority will be entitled to 35 kg of wheat, rice and millets at Rs 2, Rs 3 andRs 1 a kg, respectively. General households will be entitled to 20 kg at a pricenot exceeding half the minimum support price. The two categories togetherwould require 62.1 million tonnes of foodgrain, annually, according to AgricultureMinister Sharad Pawar. That is more than the record government procurementof 56.83 million tonnes in 2009-10.
Agricultural analysts are also questioning the viability of the food securitylegislation recommended by NAC. “It would be difficult to produce such hugequantities and the government will have to crowd out the entire private sectorfrom procurement. That is going to be a major challenge,” said Ashok Gulati,Asia director of the International Food Policy Research Institute.
Food Security Spending will Rise byRs 72,000 Crore
Agri Loans from
Micro finance FirmsHydeabad-based microfinance company,Spandana, has scaled up its agri-family loanscalled Dharini given to small, marginal andtenant farmers for agricultural purpose.
Spandana is a registered non-bankingfinance company and is regulated by RBI.It offers micro-credit and credit plus servicesto customers across 12 states in India. TillSeptember 30th, the company hasdisbursed over Rs 500 crores to farmers. Byreducing its interest rate charged on theloans to 21 percent from 24 percent in theprevious year, the company offers thelowest priced micro-loans in the industry.The agri-family loan product has reachedout to over 1.4 lakh households till date.
“We are leveraging our existing networkand passing on the benefits to ourborrowers”, said Mrs. Padmaja Reddy,managing director, Spandana. It is alsoplanning an IPO shortly.
A recently released FICCI report hashighlighted that in the last 15 years,Indian agriculture has witnessed a vibrantand dynamic participation by the privatesector. Private initiatives in agriculturecurrently span across a variety of crops,regions and are operational by both bigand medium-sized organisations.
The report – ‘Corporate Intervention inIndian Agriculture: Towards a ResilientFarming Community’ charts FICCI aimsto broad base the knowledge aboutcorporate initiatives in augmentingagriculture growth and hopes that suchpublic-private partnerships can helpimprove the level of agriculture and
farmers’ living standard.
Releasing the report, Union Minister forFood Processing Industries Subodh KantSahai appealed to the companies in thefood industry to set up a parallel businessdedicated to upgrade the agriculture andfood processing industry and invest atleast five percent of its turnover in thebusiness. This would encourage thecorporates to help the farmers increasetheir yields and take to market-drivenfarming practices.
Alongside the release of the report, BhartiWal-Mart announced its plans to buyagriculture produce directly from 35,000small and medium farmers in India by
the end of 2015 and create its thirdeducation and training centre inBangalore soon. Unfolding Bharti Wal-Mart’s plans at the event, Mike Duke,president and CEO, Wal-Mart Stores Inc,said under the Direct Farm Programmein India, Bharti Wal-Mart proposes tobring in the best farm managementpractices and train small- and medium-sized farmers to grow more with lesswater and optimum utilisation offertilisers and pesticides.
Duke added that under the Special SkillsTraining Programme, Bharti Wal-Marthas set up two training centres – one inPunjab and the other in Delhi.
FICCI Hails Private Sector in Agriculture
AGRI NEWS
