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[email protected] Today's topics: * One of the reasons, why farmers are committing suicides - 1 messages, 1 author http://groups.google.com/group/BM_discussion/browse_thread/thread/7cb46402bd10eb73?hl=en ============================================================================== TOPIC: One of the reasons, why farmers are committing suicides http://groups.google.com/group/BM_discussion/browse_thread/thread/7cb46402bd10eb73?hl=en ============================================================================== == 1 of 1 == Date: Thurs, Oct 4 2007 3:58 am From: Rishikesh On one had hand govt is not giving real price to farmers and cutting on buying from farmers and on another importing costly and bad wheat flour. Earlier attempt to import was thwarted so now wheat is being imported through back door. Source Indian Express Wheat procurement by Govt has almost halved in five years http://www.indianexpress.com/story/224184.html *New Delhi, October 3:* While the Centre cries itself hoarse that private companies have pre-empted the Food Corporation of India's (FCI)wheat buying from farmers this year, it may be telling only half the story. The percentage of wheat procured by the Centre compared with total production has been decreasing year-on-year since the start of the decade. In crop year 2006-07, it was just 14.83 per cent, down from 26.24 per cent in 2001-02. Why has this happened? While the minimum support price (MSP) paid to farmers has increased by only 37 per cent to Rs 850, from Rs 620 a quintal, the average market price has shot up by over 50 per cent to Rs 1,100, from Rs 700 per quintal, in the same period. The trend has become a serious problem for the government, which has to now use every available possibility to augment wheat stocks, including generous imports. The year 2005-06 was difficult, with procurement falling to below 10 million tonne for the first time in the decade, or a low of 13.26 per cent. The year-on-year procurement trend also shows that it would have been difficult for the government to augment its buffer stock without imports. "Procurement quantity from the market is not guaranteed. As can be seen, there is a decline in the amount of wheat that the government has been able to buy. One cannot force the farmer to sell to the government," said a government official. "It is a known fact that private traders pay a token amount over the MSP and procure large quantities of wheat," the official added. The government can only pay a certain amount, as it is also its responsibility to keep prices in check. There has been widespread criticism about the government paying higher prices for imported wheat, but not paying a higher MSP to Indian farmers. However, according to the official, raising the MSP would mean that the market benchmark would also increase. http://www.indianexpress.com/story/223759.html Govt may import wheat flour to check domestic prices Agriculture ministry To raise proposal at next meet of designated GoM. *New Delhi, October 2:* The government is planning to import more than 4.5lakh tonnes of wheat flour, valued at around Rs 8,000 crore, even as domestic wheat production has gone up by 8 per cent this year. The agriculture ministry will put forth the proposal at the next meeting of the designated group of ministers (GoM) headed by Pranab Mukherjee. The proposal also envisages removing the existing 37 per cent duty on import of wheat flour. Sources said that the proposal has already been approved by consumer affairs, food and public distribution secretary Nandkumar. The Government plans to control rising domestic prices of primary commodities. Therefore, it wants to import wheat flour even though the prices of wheat are currently cheaper in domestic market (below Rs 1,100 per quintal) by over 30 per cent compared to international prices (Rs 1,600 per quintal). Earlier, an attempt to import 7.9 lakh tonnes of wheat was stalled in the wake of a PIL filed by NGO Navdanya in the Supreme Court against the proposed wheat imports. Import of wheat flour will have an adverse impact on farmers. If wheat flour is imported, local wheat flour prices will fall, millers in turn will buy less wheat from farmers; so the price of wheat will be further depressed in the domestic market, which in turn will affect farmer's earnings. Food and trade policy analyst Devinder Sharma asked, "What is the need to import wheat flour when there is no shortage? The Government is not concerned about the farmer but only about Cargill and ADM (US agricultural commodities exporters)." Other flour mill industry sources are of the same opinion, "This is just a move to enable the import of US wheat through the backdoor." US wheat with 12,000 weeds per 200 kg compared to Indian specifications of only 100 weeds per 200 kg fails to meet Indian quality standards. There has been constant lobbying by the US farm lobby and diplomatic pressure on the Government to bend rules to give market access to US wheat exporters. The initial plan of the Government though, before removing the 37 per cent import duty, is to import wheat flour from Sri Lanka since the free trade agreement with Sri Lanka allows for duty free export of wheat flour from Sri Lanka. "Sri Lanka is not a wheat producer and has just one flour mill, 'Prima'. Then why does the Government have to import from there?" asked an industry source adding, "this is only a way to allow US wheat through the back door." Wheat flour cannot be transported in 'loose bulk' and needs to be packaged and containerised for shipping. Containerisation is more expensive and the import of US wheat in loose bulk to India is not permitted. Therefore, "a port-based milling operation with a capacity of 1,000 tonnes a day has been set up in Colombo to import American wheat in loose bulk and convert it into flour to be shipped to India," says Roller Flour Millers Federation of India president Datta Raj. *Despite the surplus* * Wheat production up 8% this year * Govt plans to import 4.5 lakh tonnes of wheat flour * Agricultural ministry proposes to remove 37%duty on wheat flour * A section of experts feels this is meant to allow US wheat 'through the backdoor' * US wheat with 12,000 weeds per 200 kg compared to Indian specifications of 100 weeds per 200 kg fails to meet quality standards ============================================================================== You received this message because you are subscribed to the Google Groups "BM_discussion" group. 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