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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News Network
March 15,2020

Bhopal, Mar 15: Madhya Pradesh Chief Minister Kamal Nath on Saturday sought the intervention of Home Minister Amit Shah for the "release" of 22 Congress MLAs in Karnataka, saying they had been held "captive" and were under "pressure".

In a letter to Shah, Chief Minister Nath said the BJP's demand for floor test had "no meaning" till the MLAs do not reach the state.

He said that the MLAs do not have any means of personal communication and all efforts to reach them have failed.

In the four-page letter, Nath said Governor Lalji Tandon had told him that the responsibility of security of those who will come to meet the Speaker should be with the CRPF but as the Chief Minister, it is his duty to ensure the security of all residents of the state including MLAs.

"I assure you that if these 22 MLAs are released by the Karnataka Police, then I will ensure maximum security by the state government so that they are able to convey their views without fear and take part in the proceedings of the assembly," Nath said.

He urged Shah to use his powers as Home Minister so that 22 MLAs safely reach Madhya Pradesh and discharge their responsibilities "without fear or greed" in the assembly session beginning on March 16."

Chief Minister Nath said that he had been informed that the MLAs had been deprived of all personal communication facilities.

He said that a father was not allowed to meet his son and two ministers who were accompanying the father of the legislator were "arrested" and manhandled by the Karnataka Police.

"My efforts to reach them as also of their relatives have failed which proves my apprehension that they are under captivity."

He said the videos released in the name of MLAs to "mislead" the people of the state were similar. "This proves that all these MLAs are under pressure and they are being forced to act in a particular way," he said.

Nath said that he was drawing Shah's attention to the developments in the state since March 3 which were aimed at destabalising the government.

He said three Congress MLAs, one BSP, and one independent MLA were taken to Gurugram and two ministers of his government were able to "rescue" the BSP legislator.

He said the three Congress MLAs and the independent MLA were later taken to Bengaluru by the BJP. He said a BJP MLA and a party functionary accompanied them.

"Later, 19 Congress MLAs were taken to Bengaluru in chartered planes and the arrangement was done by the BJP," he said, adding that they were accompanied by two former BJP MLAs and a former minister.

Kamal Nath said the number of MLAs in Bengaluru grew to 22 and they are all in the protection of the Karnataka Police.

He said some BJP leaders from Madhya Pradesh can be seen in pictures of the place where the MLAs were staying. "All reported expenses on these MLAs are being borne by the BJP," he said.

He said the BJP leaders had told the media about the resignation of MLAs and they had not presented themselves before the assembly Speaker.

Kamal Nath said he was concerned about the security of the MLAs and had written to the Governor earlier.

"You would agree with me that the demand for floor test has no meaning till the 22 MLAs are in captivity. This is unprecedented that the BJP is demanding floor test and several Congress MLAs have been kept outside the state,' he said.

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Agencies
February 23,2020

Motera, Feb 23: A day before US President Donald Trump's visit to Ahmedabad, a makeshift VVIP entry gate erected outside the newly-built cricket stadium in Motera area here collapsed due to gusty winds on Sunday morning, an official said.

The entire incident was recorded by a bystander and aired on local television channels.

The makeshift entry gate was made of welded steel rods and covered in flex banners.

After some time, a portion of another makeshift gate structure at the stadium's main entrance also collapsed due to the windy weather, another official said.

No one was injured in both the incidents and work was underway to put the structures back in place, he said.

"The (VVIP) entry gate collapsed when fabrication work was going on. It was not a major incident. No one was injured in the incident," said Special Commissioner of Police, Crime Branch, Ajay Tomar said.

President Trump and Prime Minister Narendra Modi will participate in a roadshow here on Monday and later address the 'Namaste Trump' event at the Sardar Patel Stadium in Motera area where over one lakh people are expected to be present.

The stadium has already received 'Building Use' permission from the Ahmedabad Municipal Corporation, an official earlier said.

It is the world's largest stadium with a capacity to accommodate 1.10 lakh spectators.

The stadium has been rebuilt after demolishing the old one which had a seating capacity of 49,000 spectators.

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News Network
May 20,2020

Kolkata, May 20: Cyclone 'Amphan' lay centred about 240 km south of Digha in West Bengal on Wednesday morning as an extremely severe cyclonic storm, the Met department said here.

The intensity near the centre of the storm was 170 to 180 kmph gusting to 200 kmph, the Met said.

'Amphan' is very likely to move north-northeastwards and cross West Bengal-Bangladesh coast between Digha and Hatiya, close to the Sunderbans during the afternoon to evening of Wednesday with a wind speed of 155 to 165 kmph gusting to 185 kmph as a 'very severe cyclonic storm', the Met department said.

West Bengal has evacuated more than three lakh people to safer places as the cyclonic storm 'Amphan' roared towards the coastal areas of the state, officials said.

The Met department, which has issued an "orange message" for West Bengal, warned of extensive damage in Kolkata, Hooghly, Howrah, South and North 24 Parganas and East Midnapore districts.

The Met department has advised that all establishments and markets remain closed in Kolkata and adjoining areas and movement of people be restricted on May 20.

There is likely to be disruption of rail and road link at several places, uprooting of communication and power poles, extensive damage to all types of 'kutcha' houses and some damage to "old badly managed pucca" structures and potential threat from flying objects, the weatherman warned.

There is also likelihood of extensive damage to standing crops, plantations and orchards and blowing down of palm and coconut trees, the Met said.

The weatherman has advised diversion or suspension of rail and road traffic in the districts which are likely to be affected.

The Eastern Railway (ER) has cancelled the departure of Howrah-New Delhi AC Special Express for Wednesday.

The departure of 02301 Howrah-New Delhi AC Special Express on Wednesday and 02302 New Delhi-Howrah AC Special Express on May 21 would remain cancelled, the ER said.

Wind speed along and off the coastal areas of West Bengal will reach 75 to 85 kmph with gusts up to 95 kmph from Wednesday morning along and off districts of North and South 24 Parganas, East and West Midnapore, Kolkata, Howrah and Hooghly, Regional Met director G K Das said.

"It will gradually increase thereafter becoming 110 to 120 kmph gusting to 130 kmph over West Midnapore, Howrah, Hooghly, Kolkata and wind speed of 155 to 165 kmph gusting to 185 kmph over the districts of North and South 24 Parganas and East Midnapore of West Bengal from the afternoon to night of May 20," he said.

Under its impact rainfall will occur in most places over the districts of Gangetic West Bengal on Wednesday, with heavy to very heavy downpour with extremely heavy rain at a few places in Kolkata, Howrah, East Midnapore, North and South 24 Parganas and Hooghly districts, he said.

"Storm surge of 4 to 5 metres above astronomical tide is likely to inundate low lying areas of South and North 24 Parganas and about 3 to 4 metres over low lying areas of East Midnapore district of West Bengal during the time of landfall," he said.

The Indian Navy has dispatched a diving team for providing assistance to the West Bengal government in relief operations, a Defence official said.

The diving team from Vishakhapatnam has brought specialised equipment along with them which can be used for rescue in case of flooding and have been positioned at the Naval Service Selection Board at Diamond Harbour in South 24 Parganas district, the official said.

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