Food imports rise as Modi struggles to revive rural India

February 2, 2016

New Delhi, Feb 2: Prime Minister Narendra Modi held a late night meeting with food and farm officials last week to address falling agricultural output and rising prices, and traders warn the country will soon be a net buyer of some key COMMODITIES for the first time in years.

indiaBack-to-back droughts, the lack of long-term INVESTMENT in agriculture and increasing demands from a growing population are undermining the country's bid to be self-sufficient in food.

That is creating opportunities for foreign suppliers in generally weak commodity MARKETS , but is a headache for Modi, who needs the farm sector to pick up in order to spur economic growth and keep his political ambitions on track.

"The top brass is dead serious about the farm sector that is so crucial to our overall economic growth and well-being," said a source who was present at the recent gathering of Modi, his agriculture and food ministers and other officials.

Modi sat through presentations and asked the ministers to ensure steady supplies and stable prices, urging them to find solutions, the source said. Modi did not suggest any immediate interventions of his own.

The long term impact on commodity markets could be significant.

Last month, India made its first purchases of corn in 16 years. It has also been increasing purchases of other products, such as lentils and oilmeals, as production falls short.

Wheat and sugar stocks, while sufficient in warehouses now, are depleting fast, leading some TRADERS to predict the need for imports next year.

"There's a complete collapse of Indian agriculture, and that's because of the callous neglect by the government," said Devinder Sharma, an independent food andTRADE policy analyst.

"Given the state of agriculture, I'm not surprised to see India emerging as an importer of a number of food items. Maize is just the beginning."

Growing distress

Agriculture contributes nearly 13 percent to India's $2 trillion economy and employs about two-thirds of its 1.25 billion people.

Government sources said that boosting irrigation, raising crop yields and encouraging farmers to avail of a new crop insurance scheme unveiled in January will help address growing distress in the countryside caused by poor harvests.

Modi has already loosened controls on some imports.

But one of his biggest dilemmas is that although imports can help cool prices - a key concern for the ruling Bharatiya Janata Party's core middle-class voter base - farmers see them as benefiting foreign producers at the cost of locals.

In a recent interview with television channel ET Now, Finance Minister Arun Jaitley said the government was aware of the impact two bad monsoons have had.

"That now tells me, please spend more on irrigation," he said.

The farm sector needs to grow at about 3 percent to help Jaitley achieve his target of 7 to 7.5 percent economic growth in the 2015/16 fiscal year.

In the first half of this fiscal year, agricultural growth fell to 2 percent from 2.4 percent a year earlier.

Who are the winners?

India's entry into the MARKET as a net importer is good news for suppliers like Brazil, Argentina, the United States and Canada, which are suffering from a global commodity glut.

India's move to import corn, for example, has supported global prices. Corn values rose 2.6 percent after India said on Jan. 13 that it would launch a second tender for 200,000 tonnes, its second since announcing plans to buy half a million tonnes.

Traders say India may need to import another 1.5-2.0 million tonnes.

The next big import item on the list could be oilmeals, an animal feed, which India used to export in large quantities until last year.

"Very soon we'll be left with no choice but to import oilmeals, largely because our oilseed production has failed to keep pace with our demand for both vegetable oils and oilmeals," said B.V. Mehta, head of TRADE body Solvent Extractors' Association.@Body.

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Agencies
January 16,2020

Lucknow, Jan 16: The drive initiated by Uttar Pradesh's Yogi Adityanath government to identify non-Muslim immigrants in the state seems to have run into rough weather.

In Pilibhit, where the maximum number of about 35,000 illegal immigrants has been identified, it has now been found that information is being sought by the state government on an unverified document. A large number of families from Bangladesh settled here several decades ago.

The survey began last month even before the bill was notified. Moreover, the feedback email on the questionnaire is a Gmail ID -- [email protected] -- which is not a government server.

It is not known how the state government is drawing up the lists without having the verification criteria.

After the report was put up by a news website, Home Department officials feigned complete ignorance about the issue.

A spokesman said: "This was an unofficial and preliminary exercise to assess the number of illegal migrants in the state. The document is meant to collect basic beneficiary information. No list of potential beneficiaries has yet been sent to Delhi."

The document has eight columns asking for name, father's name, place of stay in India, and where did they come from and when. It does not mention any requirement of proof, or documents.

It also asks for a description of the kind of atrocities they faced, presumably in their home country.

The District Magistrate of Pilibhit claimed they are checking documents of the refugees, but denied any knowledge of the unsigned document.

The CAA is meant to benefit Hindus, Sikhs, Buddhists, Jains, Parsis and Christians from Pakistan, Bangladesh and Afghanistan who came to India before December 31, 2014. The statement of purposes of the Act adds that it is meant to benefit those fleeing religious persecution from the above countries.

Comments

Abdullah
 - 
Thursday, 16 Jan 2020

Yogi is unfit to be CM as he does not know what he speaks and does.   Its unfortunate that we are such idiot as CM.    Instead of CAA we need PAA (Politician amendment act).    We need age limit of politicians to be fixed to 65 or maximum 70 years and any one coming in politics to be free from any bad doing.   No rapists/murders/looters/decoits should be allowed to contest election.   Presently 90 percent of the politicians have bad record.  Few are rapists, murders, having spent jail term etc.    

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News Network
July 19,2020

Lucknow, Jul 19: The animal markets, which are usually bustling with activity ahead of Bakrid, are desolate this year.

The Covid-19 pandemic has shorn all festivals of public celebrations, and people are apprehensive that the tradition of animal sacrifice may be affected due to social distancing norms.

Also there is a massive drop in demand for sacrificial animals due to the financial impact of the crisis.

Chairman of All India Jamiat-ul-Quresh Sirajuddin Qureshi urged the government to come out with guidelines for carrying out the celebrations in the traditional way.

The festival will fall on July 31 or August 1. Buyers and sellers start thronging the animal markets almost two weeks ahead of the festival. But this year only a negligible number of buyers have turned up in animal markets in old Lucknow areas including Nakkhas, according to traders.

"It is very difficult to say as to what the government is thinking. 'Qurbani' is a matter of faith for the Muslims. We appeal to the government to deliberate and find a solution. This is a national problem, and our office bearers are speaking to different state governments," Qureshi said.

In the absence of guidelines, not many madrassas are buying animals for sacrifice, he said.

"The madrasas where collective 'qurbani' is done, are also not coming forward. In Bakrid, along with goats, buffaloes are also sacrificed. The government should ensure that people who are transporting the animals are not harassed by the police," Qureshi said.

Prominent Muslim cleric Khalid Rasheed Farang Mahali said he had raised the issue with the Uttar Pradesh chief minister.

"I have recently met Chief Minister Yogi Adityanath requesting him to issue guidelines for Bakrid. I am hopeful that the guidelines will be released soon," he said.

Rahat Ali, a goat trader from Rajasthan said, thousands of people will be affected due to the reduced demand for animals.

"The animal trade works in a chain involving farmers who rear animals, small traders and big traders.

"The traders buy the animals from the farmers. These are then sent to various states like Maharashtra, Gujarat and Uttar Pradesh. In the absence of demand, I did not purchase animals this year," he said.

Sajid, who supplies goats to various districts in western Uttar Pradesh, said the lockdown has affected the livelihood of people and not many have the money to buy animals for sacrifice.

"The lockdown has drained the people of their money. As a result, the animals are not getting sold," he said.

The Maharashtra government has come out with guidelines for Eid al-Adha, also known as Bakrid or Id-ul-Zuha, noting that there is a ban in place on all religious programmes and people should offer "namaz" in their homes and not in mosques.

It also said sacrificial animals should be bought online or over the phone as markets dealing with them will be closed, adding that "qurbani" should preferably be symbolic.

There will be no relaxation in restrictions for Eid in containment zones, and people are directed not to congregate in public places on the day of the festival, it added. 

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News Network
May 24,2020

New Delhi, May 24: The Indian economy is likely to slip into recession in the third quarter of this fiscal as loss in income and jobs and cautiousness among consumers will delay recovery in consumer demand even after the pandemic, says a report.

According to Dun & Bradstreet's latest Economic Observer, the country's economic recovery will depend on the efficacy and duration of implementation of the government's stimulus package.

"The multiplier effect of the stimulus measures on the economy will depend on three key aspects i.e. the time taken for effecting the withdrawal of the lockdown, the efficacy of implementation and duration of execution of the measures announced," Dun & Bradstreet India Chief Economist Arun Singh said.

The report noted that the government's larger-than-expected stimulus package is likely to re-start economic activities.

Besides, measures taken by the Reserve Bank of India like reducing the repo rate by a further 40 basis points to 4 per cent, extending the moratorium period by three months and facilitating working capital financing will also help stimulate the momentum.

Singh said while the measures announced by the government are "positive", most of them have been directed towards strengthening the supply side of the economy, and "it is to be noted that supply needs to be matched with demand", he said.

Besides, "in the absence of cash-in-hand benefits under the government's stimulus package, demand for goods and services is expected to remain depressed", he added.

He further said the loss in income and employment opportunities, and cautiousness among consumers, will lead to a delayed recovery in consumer demand, even after the pandemic. As debt and bad loan levels increase, the banking sector might face challenges.

The report further noted that even as the monetary stimulus is expected to inject liquidity and stimulate demand for a wider section of the economy, the channelisation of funds from the financial institutions will be subjected to several constraints.

The foremost concern being increase in risk averseness, as the balance sheets of firms, households, and banks/NBFCs have weakened considerably and low demand for funds by firms as production activities have been on a standstill during the lockdown period, Singh said.

India has been under lockdown since March 25 to contain the spread of the coronavirus, resulting in supply disruptions and demand compression.

Prime Minister Narendra Modi imposed a nationwide lockdown to control the spread of coronavirus on March 25. It has been extended thrice, with some relaxations. The fourth phase of the lockdown is set to expire on May 31. 

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