Category: Agriculture

Sustainable agriculture — here’s a call for evolution in education

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

The pursuit of a more sustainable food and agricultural system to serve a growing global population while safeguarding our planet’s finite resources is an increasingly urgent imperative — and so, therefore, is empowering the farmers who play a critical role in shaping that system. 

In India, while the agricultural export sector is projected to reach US$100 billion by 2030, the industry faces an unprecedented challenge — preserving the environment in which it operates. With growing consumer demand for ethically sourced products and increasingly stringent environmental standards in international markets, sustainable farming practices are now, more than ever, directly impacting economic and social affairs. 

The country’s farmers face complex challenges, from limited access to credit and high-quality seeds, to water scarcity and climate change. This is compounded by insufficient access to market insight and training to adopt more sustainable practices and new technologies — all of which contributes to untapped potential for lasting positive change.

There is immense potential for transformation toward more sustainable agriculture in the country, but implementation depends greatly on a profound mindset shift, to fully embrace innovation, technology and environmental conservation in agricultural production, ultimately ensuring that rural communities thrive over the long term. 

Education in Farming Practices of Tomorrow

Shaping a sustainable agricultural landscape requires a new generation of rural economies, where farmers are equipped with the tools, knowledge and skills to navigate the complexities of modern food systems and markets for maximum farm profitability, resilience and food security, while conserving key ecosystems.

In India, the government has launched numerous initiatives to help bridge the education gap and help create a sustainable future for agriculture. Notably, initiatives like the Paramparagat Krishi Vikas Yojana (PKVY), offer financial assistance to farmers transitioning to organic farming, while the Pradhan Mantri Krishi Sinchai Yojana promotes modern irrigation methods for water efficiency. These programs, among others, showcase the government’s commitment to fostering a more sustainable agricultural landscape. 

The goal is to unlock the full potential of sustainable agriculture by empowering Indian farmers with practical knowledge to improve their livelihoods for the long term, through accessible content and customised training aligned to regional needs, continuous development opportunities and robust community learning networks.  

Techniques and Technologies for a More Sustainable Future

Regenerative farming principles and practices, such as water and soil conservation techniques, must be seamlessly integrated into the agriculture curriculum, supported by collaboration and innovation among educational institutions, government agencies, NGOs and the private sector.

In parallel, the rise of agri-tech in India has the potential to propel both farmer prosperity and industry growth. A McKinsey analysis estimates that agri-tech in India has the potential to boost farmer incomes by 25 to 35% and add US$95 billion to the local economy through reduced input costs, enhanced productivity and improved price realisation, as software-driven tools and yield optimisation platforms guide decision-making for greater efficiency and higher crop quality.

Such initiatives, once implemented, underscore the transformative impact of empowering farmers with knowledge and skills, leveraging the concerted efforts of businesses and stakeholders to bridge the gap between theory and practice, drive access to cutting-edge technologies, and ultimately drive adoption of responsible farming practices.

Going forward, the need for collaboration among agriculture value chain stakeholders is increasingly urgent, in the interest of a resilient agriculture sector and farming community — in India and globally — with all actors taking responsibility for their respective roles in promoting sustainable agricultural practices, with a focus on education and investments in technologies with the potential to transform production methods toward a fair and sustainable future, for people and planet.

— The author, Sumeet Mittal, is Country CEO for India, Louis Dreyfus Company (LDC). The views expressed are personal.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

India asks traders to avoid buying new-season wheat to shore up state stocks

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

India has asked global and domestic trade houses to avoid buying new-season wheat from local farmers to help the government-backed Food Corporation of India (FCI) procure large quantities to shore up its depleting reserves, sources said.

India, the world’s biggest wheat consumer and grower after China, banned exports in 2022 and is keen to bolster stocks and tame prices that surged after dry weather hurt output in 2022 and 2023.

Rising wheat prices forced the government to sell record quantities to boost local supplies, leading to a drawdown in reserves essential for the world’s biggest food welfare programme, which entitles nearly 800 million to free grain.

The government has asked private traders to stay away from wholesale markets where farmers usually sell their produce to FCI or private traders, said traders and government sources, who declined to be named as they were not authorised to talk to the media.

The government informally asked private traders to avoid buying wheat at least in April, the sources said, its first such guidance since 2007. Wheat procurement starts tapering off after mid-May.

“We are not going to buy in April. We will wait until May. Except for processors and small traders, everyone is likely to follow the government’s lead,” said a Mumbai-based trader with a global trade house.

Traders active in India’s grain markets include Cargill Inc, Hindustan Unilever Ltd, ITC Ltd, Louis Dreyfus Company and Olam Group.

The government has asked the top wheat-growing states to ensure that private traders do not get in the way of FCI’s plans to buy at least 30 million metric tons this year, the sources said.

In 2023, FCI bought 26.2 million metric tons of wheat from local farmers, below its target of 34.15 million metric tons.

Because of last year’s lower purchases, wheat inventories in government warehouses fell to 9.7 million metric tons at the start of March, the lowest since 2017.

Lower wheat inventories tend to stoke open market prices.

Despite falling inventories, New Delhi has resisted calls for wheat imports as overseas purchases tend to anger farmers who form an influential voting bloc.

Millions of Indians will vote in the parliamentary election, which will be held from April 19.

India’s lower wheat stocks could force New Delhi to import 2 million metric tons of the grain this year, according to a United States Department of Agriculture report last week.

FCI is focused on Uttar Pradesh, a top producing state which has historically contributed less than 2% to FCI’s wheat procurement, with the state government asking railways not to provide freight cars to big traders in April, the sources said.

Uttar Pradesh has asked local authorities to ensure that big traders do not get to buy large quantities of wheat, according to a government letter addressed to district officials and seen by Reuters.

FCI recently started buying new wheat from farmers at a state-set ₹2,275 ($27.29) per 100 kg against open market rates of around ₹2,500.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Wheat stocks fall to 6-yr low in Dec; Prices jump to record high

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

Wheat stocks for December within government warehouses are the lowest they’ve ever been since 2016 while prices are at a record high, data shows.

India is the second-largest producer of wheat in the world and also the biggest consumer of the commodity.

Government data released on Tuesday showed that wheat reserves were at 19 million tonnes on December 1 compared to last year’s 37.85 million tonnes.

Wheat stocks have depleted by 2 million tonnes since November, per the data.

Food Secretary Sanjeev Chopra told CNBCTV-18 in November that India’s wheat procurement in 2022 is likely to be more than last year.

According to Reuters, Indian farmers have planted 25.6 million hectares worth of wheat since October 1.

Also read: India’s wheat procurement likely to be more than last year, says food secretary

Last time wheat reserves were this low was in 2016 when the country had suffered back-to-back droughts in 2014 and 2015 harming crop yield.

The price of wheat has increased by around 27% since the country banned exports in May and reached a record of Rs 26,500 per tonne in November.

A Mumbai-based dealer told Reuters that the government cannot release more than 2 million tonnes in a month to bring prices down.

Also read: Government could implement measures to cool record wheat prices

Sources suggested that one way to mitigate this shortage could be to drop the 40 percent wheat import tax.

With inputs from Reuters.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Views | Enhancing food security through alternative proteins

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

Climate change has borne witness to the interconnectedness of our planet and the need for collective action for change. Two days before the commencement of India’s G20 Presidency, the World Bank released a report on investment opportunities in India’s cooling sector which warned that India could be one of the first places in the world to experience heat waves that break the human survivability limit. It went on to forecast that by 2030, India may account for 34 million of the projected 80 million global job losses from heat stress associated productivity decline. This report makes India’s theme for its G20 presidency “One Earth, One Family, One Future” extremely relevant.

The G20 working group meeting in Mumbai, is amongst other issues, focusing on food and energy security. Food security has been a priority issue on the G20 agenda, and the climate crisis has and will only exacerbate this issue. The State of Food Security and Nutrition in the World 2022 report highlighted the need to transform agri-food systems making them more resilient and providing sustainable nutritious diets globally. In 2021, an estimated 828 million people were affected by hunger, 45 million children under the age of five were suffering from wasting and 16.3 percent of India’s population was undernourished. It cautions us that we are moving away rather than towards the 2030 zero hunger Sustainable Development Goal.

The world’s population is increasing and by 2050 is expected to reach 9.7 billion. Our food system is highly reliant on animal agriculture which harms the climate. We now produce more than 340 tonnes of meat annually; compared to 70 million tonnes of meat in the 1960s.

Anthropogenic greenhouse gas (GHG) emissions from livestock amount to 14.5 percent of total emissions and 44 percent are composed of methane. Over 20 years, methane’s global warming impact is 80 times that of carbon dioxide. Livestock accounts for 32 percent of human-caused methane emissions.

According to the United Nations Environmental Programme, reducing methane livestock-related emissions are critical. It is for this reason that COP26 saw the signing of the Global Methane Pledge (GMP) in which over 100 countries agreed to a 30 percent reduction in methane emissions by 2030. At COP 27 150 countries endorsed the GMP and more than 50 countries developed national methane action plans. A GMP Food and Agricultural Policy which focuses on increasing innovation to combat methane emissions was also launched.

Alternative proteins (plant based and cultivated meat) provide an opportunity for us to push the needle on issues ranging from food security to climate change; much like renewable energy and electronic vehicles, they help us live the life we are used to sustainably. In the global north, it can help reduce GHG emissions from food consumption and in the global south can help bridge nutritional gaps. Plant based meats are made from plant-based raw materials; they taste, feel, and look like meat; however, are far more sustainable. Cultivated meat (CM) is made by taking a few animal cells which are then multiplied in a sterile facility. On a cellular level, it is the same as conventional meat. It has the nutritional value that meat would have without the negative externalities. For example, in ten years, if cultivated beef is prepared using renewable energy, it will emit 92 percent less GHGs than conventional beef available today.

The international plant-based food market is expected to grow to USD 77.8 billion by 2025 and USD 161.9 billion by 2030. The CM economy is expected to be worth USD 450 billion by 2040.

Governments around the world have, to varied extents, provided support to the alternative protein sector. Singapore, for example, has given regulatory approval for cultivated meat to be sold commercially. It has included alternative proteins to achieving their goal of meeting 30 percent of their nutritional needs locally by 2030. The island nation has launched a sustainable foods platform which helps companies fast track and scale their products and its holding company, Temasek, has invested more than USD 5 billion in agri-foods enterprises alternative proteins being a key area of focus. Last month, a cultivated meat company in the United States, Upside Foods, has been granted approval from the Food and Drug Administration for their lab grown chicken. Governments of the United Kingdom, Denmark, Germany, Japan, Qatar, and Canada have invested in and are supporting the development of these sectors nationally. However, a key missing piece of the puzzle is global intergovernmental cooperation.

India, because of its agricultural biodiversity and advanced biopharma sector, can be a market leader in this sector and as the chair of the G20 must build international collaboration to develop this solution. Greater research needs to be conducted on how climate hardy crops such as millets and pongamia seeds can be used as raw materials to develop such novel foods and empower vulnerable farming communities. Policy options ranging from creating a favourable regulatory framework, providing economic incentives such as tax breaks, developing grant schemes for research, building structures within the government that focus exclusively focus on the development of alternative proteins and leveraging the power of nudges to encourage consumption of these novel foods must be explored.

Start-ups are developing plant-based products such as kheema and chicken kebabs. While the government has expressed interest in the sector and grants for research have been made, a strategic interdepartmental cross sectoral effort is needed to align and enhance government programmes to develop a cost competitive local alternative protein ecosystem.

In 2021, global investment in renewables was set to rise to USD 1.9 trillion and in comparison, alternative protein companies raised USD 5 billion. While there is tremendous interest from private investors in this sector, government investment needs to be increased and global intergovernmental cooperation and support must be galvanised to effectively use this technology to feed the world nutritious food sustainably. It is the need of the hour and ought to feature on India’s national and the G20 agenda.

—The author Ambika Hiranandani is an alternative protein enthusiast and has just completed an MPhil in Public Policy from the University of Cambridge. 

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Adani Wilmar looking at stressed assets in staples for inorganic growth

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

[wealthdesk shortname=”Adani Wilmar” isinid=”INE699H01024″ bseid=”543458″ nseid=”AWL” sector=”Consumer Food” exchange=”nse”]

Acquisition process is a continuous evaluation that Adani Wilmar keeps on doing, said Angshu Mallick, MD and CEO of the company, while speaking to CNBC-TV18. He believes stressed assets are better buying options.

“We keep looking at stressed assets, organisations or brands. We are in staples, so anything in staples, we are surely looking at stressed assets,” he said while speaking with CNBC-TV18.

Fortune and Kohinoor are two strong brands Adani Wilmar has in the market along with the distribution network across the country. “What we need is assets to ramp up our production fast,” he said.

The company has set aside around Rs 500 crore for acquisition and around Rs 1,900 crore for capex.

However, he mentioned that the company would put in more money from internal accruals as Rs 500 crore may not be enough to buy the assets or brands that the company wants.

The dip the company saw in quarter one and quarter two wasn’t based on the volume, it was based on prices, he said.

“We have seen good consumption for the marriage season. We see great opportunity for basmati rice and edible oils,” he said.

The company has seen some dip in consumption in rural areas, particularly edible oil. “Forty percent share has come down to 38-37 percent. So, around a 2 percent dip has been seen,” he said.

In foods, Adani Wilmar continues to hold 25 percent share in the rural market, which is a healthy sign for the future, according to Mallick.

Also Read: From Harsha Engineers to Adani Wilmar to LIC: Here’s a look at the most to least chased IPOs of 2022

The company is seeing good consumption for the wedding season. So, the CEO sees a great opportunity for the basmati rice and edible oil business.

“In edible oil, we see an increase of around 8-10 percent in volume,” he said.

He is hopeful of seeing good signs of growth from December onwards. “January onwards, the real thing starts. So quarter four of this year and quarter one of next should be a big one,” he mentioned.

According to him, overall agricultural business looks better. Agri crop and the remuneration on the farm output has been good.

For the full interview, watch the accompanying video

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Wheat acreage jumps by 25% so far for this rabi season at 255.76 lakh hectare

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

Wheat acreage has increased by 25 percent so far in the ongoing rabi season at 255.76 lakh hectares mainly on higher sowing area in Uttar Pradesh and Madhya Pradesh, the government data showed. The area under coverage for wheat, which is the major crop in rabi (winter-sown) season, stood at 203.91 lakh hectares in the same period last year.

Sowing of rabi crops starts from October. Higher area has been reported from Uttar Pradesh (20.09 lakh hectares), Madhya Pradesh (13.48 lakh hectares), Rajasthan (5.32 lakh hectares), Gujarat (2.61 lakh hectares), Maharashtra (2.43 lakh hectares), Bihar (2.24 lakh hectares), Punjab (1.32 lakh hectares) and Haryana (1.28 lakh hectares).

Increase in wheat sowing area augurs well for the country as the domestic production had fallen to 106.84 million tonnes in the 2021-22 crop year (July-June) from 106.84 million tonnes in the previous year.

Also Read: Cyclone Mandous: Over 10 flights cancelled in Chennai, NDRF on standby amid heavy rain | Latest updates

In May this year, the government banned exports of wheat to boost domestic supplies and control prices. Wheat procurement by state-owned FCI fell to 187.92 lakh tonnes in 2022-23 marketing year from 434.44 lakh tonnes due to fall in domestic output and aggressive purchase by private parties.

According to data as on December 9, paddy acreage has increased to 11.86 lakh hectares so far from 10.42 lakh hectares.

Pulses have been sown in 127.07 lakh hectares so far as against 123.77 lakh hectare, with area under gram rising to 89.42 lakh hectares from 87.28 lakh hectares.

Area under coverage for coarse cereals has risen to 36.39 lakh hectares from 32.05 lakh hectares.

In non-foodgrain category, area under coverage for oilseeds has increased to 95.19 lakh hectares from 87.65 lakh hectares. Mustard, the main oilseeds crop in rabi season, rose to 87.95 lakh hectares from 80.78 lakh hectares.

India imports about 60 percent of its edible oils requirement. Therefore, the increase in the mustard seeds acreage will boost domestic output of mustard oil.

Total sowing area under rabi crops has increased to 526.27 lakh hecatres so far from 457.80 lakh hectares in the corresponding period of the last year.

Also Read: Govt to set up ‘Farmer Grievance Redressal’ portal — Here’s how it will work

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Department of Fertilisers seeks additional subsidy of Rs 1.09 lakh crore

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

The Government on Friday sought Parliament nod for net additional spending of over Rs 3.25 lakh crore in the current fiscal. In the first batch of supplementary grants requests tabled in the Lok Sabha by Minister of State for Finance Pankaj Chaudhary, approval is sought for gross additional expenditure of about Rs 4.36 lakh crores.

In the supplementary grants, the Department of Fertilisers under the Ministry of Chemicals and Fertilizers has demanded Rs 1.10 lakh crore additional fertiliser subsidy. Under this Rs 86,1666.72 crore will be given as urea subsidiary while Rs 23,122.23 crore will be given as P&K subsidiary.

Shares of major fertiliser companies are trading in the red. While Chambal Fertilisers and Chemicals is down 2.77 percent, Deepak Fertilisers and Petrochemicals Corporation is down 1.64 percent, Gujarat State Fertilizers & Chemicals is down 2.41 percent and Coromandel International is down 1.22 percent from previous close on the BSE.

Under this, subsidiary for Nitrogen (N) will be Rs 98.02 per kilo, Phosphorous (P) will be Rs 66.93 per kilo, Potassium (K) rS 23.65 per kilo, will be and for Sulphur (S) it will be Rs 6.12 per kilo.

Earlier CNBC Awaaz had reported that the government is preparing to give big relief to the fertiliser sector on three fronts. This includes increasing urea’s fixed cost and reinstating the MRP for P&K Fertiliser.

According to sources, the Ministry of Chemicals and Fertilizers is considering a proposal to increase the minimum fixed cost of urea. Discussions have happened between the fertiliser industry and the Ministry of Chemicals and Fertilizers on this issue.

Apart from the raw material in urea production, fixed costs like the plant machine and salary are periodically assessed by the government to determine the exact difference between the cost of production and the selling price of urea and accordingly provide subsidies to the companies.

Also read: India seeks preferential treatment from global fertiliser suppliers; says will not tolerate cartelisation

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Govt to set up ‘Farmer Grievance Redressal’ portal — Here’s how it will work

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

The central government is preparing to set up a  ‘Farmer Grievance Redressal Portal’ (FGR), the trial for which has started in Chhattisgarh. The same will be launched across the country on January 1 and will look into the matters of farmers. The government will also take suggestions from the farmers on the portal.

Action will be taken if the benefit of the crop insurance scheme is not received.

Crop insurance is a means of protecting the agriculturist against financial losses due to uncertainties that may arise from crop failures/losses arising from named or all unforeseen perils beyond their control.

Farmers will also be able to complaint about shortage of seeds and fertilizers. Moreover, complaints could be made if Food Corporation of India (FCI) does not buy crops.

The complaints could be made through SMS, call and app. There will be a 3 tier mechanism for redressal of complaints.

Chhattisgarh was selected by the Ministry of Agriculture, Government of India because of the better performance of the state in the implementation of Prime Minister’s crop insurance and being the leading state in the payment of insurance claim amount in the country.

Pradhan Mantri Fasal Bima Yojana (PMFBY) is the government sponsored crop insurance scheme that integrates multiple stakeholders on a single platform. It aims at supporting sustainable production in agriculture sector by way of – a) providing financial support to farmers suffering crop loss/damage arising out of unforeseen events b) stabilizing the income of farmers to ensure their continuance in farming c) encouraging farmers to adopt innovative and modern agricultural practices d) ensuring flow of credit to the agriculture sector; which will contribute to food security, crop diversification and enhancing growth and competitiveness of agriculture sector besides protecting farmers from production risks.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

India may offer relief to fertiliser sector, big decision on MRP likely soon: Sources

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

The fertiliser sector is expected to get some relief soon as the government is considering increasing the fixed cost of urea, sources told CNBC Awaaz. According to the sources, the MRP for P&K Fertiliser may be reinstated. The Fertiliser Association of India said the government is expected to take a decision on this soon.

The government is preparing to give big relief to the fertiliser sector on three fronts. This includes increasing urea’s fixed cost and reinstating the MRP for P&K Fertiliser.

According to sources, the Ministry of Chemicals and Fertilizers is considering a proposal to increase the minimum fixed cost of urea. Discussions have happened between the fertiliser industry and the Ministry of Chemicals and Fertilizers on this issue. 

Also read: Cabinet hikes subsidy rates on NPKS fertilisers — check new rates here

However, the government has not changed the fixed cost since 2002-03. In this case, the price of a 50 kg bag of urea is fixed at Rs 268.

However, it marginally increased during NPS-III in 2014. The Fertiliser Association of India says urea production is becoming difficult due to a lack of increases in fixed costs. Fertiliser Association of India chairman KS Raju recommends increasing fixed costs by 12 percent of profit after tax (PAT) every year.

In addition, Fertiliser Association of India has pushed for the return of P&K Fertiliser’s market-based MRP system. In addition, there has been a need to eliminate indirect taxes while setting the MRP of P&K Fertiliser units.

“The government is considering these proposals. And a decision on this front is likely to be taken soon,” according to the Fertiliser Association of India.

Also read: Deepak Fertilisers, Aarti Industries join hands in Rs 8,000 crore Nitric Acid supply arrangement

The fertiliser industry is also receiving assistance from the international front in addition to government relief. International prices for natural gas and fertiliser raw materials, which had previously climbed significantly, are now showing a drop.

According to Dr PS Gehlot of Indian Potash Limited, this could result in a decrease in the need for fertiliser subsidies of around 25 percent in the following fiscal year.

For the long term, however, the fertiliser industry has developed a roadmap till 2030. This plan calls for 50 percent of the energy needed by the industry to come from renewable sources. During the 8th and 9th of December, a seminar will also be held on this topic.

Shares of major fertiliser companies are trading red. Chambal Fertilisers and Chemicals is down 0.6 percent, Deepak Fertilisers and Petrochemicals Corporation is down 0.1 percent, Gujarat State Fertilizers & Chemicals is down 1.5 percent and Coromandel International is down 1.8 percent from previous close on the BSE.

Also read: Fertiliser subsidy unlikely to hit Rs 3 lakh crore, says government official

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Views | G20 Presidency: A chance for India to end international conflicts on farm subsidies

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

As India takes over the G20 Presidency for a year from this December onwards, it can attempt to bring global consensus on the issues related to farm subsidies. For a long time, this issue has been contested on the global platform and India has witnessed international opposition to its farm subsidy programmes. 

Farm Subsidies & G20

A report titled “G-20 Presidency For India A Golden Opportunity To Correct The Longstanding Issues Regarding Agricultural Subsidies” published by State Bank of India (SBI) stated, “India’s Presidency is a golden chance for India to correct the long standing anomalies that are heavily loaded against the developing countries in the domain of agriculture and food subsidies.” It observed that in developed countries like the US and UK, the domestic support per farmer in 2016 was $60,586 and $6,762 respectively. It expects that the post pandemic figures must have jumped higher. But in India the post-pandemic number is around $600. 

As per the World Trade Organisation’s (WTO) rule, agricultural subsidies resulting in trade distortion are not allowed and are marked within the amber box. In this box, minimal subsidy is permitted according to 1986-88 prices which brings the figures at 5 percent for developed countries and 10 percent for developing countries. Report mentioned, “discounting the agri-output numbers at 1987 prices, using the GDP deflator show that India will need to cut its subsidy by as much as 92 percent from current levels if it were to bring subsidy to 10 percent of agri output / WTO-mandated targeted subsidy! This is thus a theatrical absurdity as it will require India to eliminate all support to the vulnerable segment of the rural economy.”

The reference year is significantly outdated and India under its G20 presidency can amend these clauses. Report suggests to go by the G33 proposal to “use the discount factor as a trimmed 3-year rolling average for every year, based on the preceding five-year period excluding the highest and lowest price.”

As G20 brings together various stakeholders, India can be a bridge between developing and developed world in framing these new rules for the new economic age.

—

Read Patki’s previous articles here 

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow