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Finance, Interaction, Opinions

The forthcoming budget must look to leverage the resilience to enable the growth of agriculture by more than 4 per cent in the coming few years while being more environmentally responsible. There are certain crucial aspects to be considered for this transformation. Setting up a National Agriculture Council on the lines of the GST council, comprising of centre and state representatives along with the representatives of the private food and agriculture sector to drive long-term strategy can prove to be the stepping stone. Incentivising access to formal banking and financial services basis good loan repayment practices will help in uplifting the current state using enhancing the credit availability to agriculture to beyond Rs 18 lakh crore at affordable interest rates for farmers and farm-level processing infrastructure, instead of being consumed by corporates. Alongside, incentivising the private sector players in agriculture who handhold the formation and growth of FPOs/FPCs by offering tax breaks on such substantiated investments can be beneficial in the longer run. Further, upgrading the quality control infrastructure across the country to ensure the availability of quality inputs to farmers and agriculture produce to processors and consumers will strengthen the backbone of Indian agriculture.

As the farmers look to navigate through the pandemic, bringing down the GST levied on agricultural inputs to a maximum of 8 per cent and exemption of income tax on the investments being made by agricultural sector companies can be substantial considering agricultural extension is critical to technology adoption. Following that up, incomes three times the investment in R&D each year must be exempted from the income tax levy.

The upcoming budget can additionally provide special incentives for R&D, manufacturing, training and certification of precision agriculture mechanisation including drones to encourage sustainable agriculture and develop India as a smallholder farmers’ precision agriculture hub. Linking the PM Kisan Nidhi for the purchase of advanced inputs by the farmers decontrolling fertilisers from subsidy and starting a DBT system for bonafide farmers to enhance efficiency can be probable solutions. Having the technical grade pesticides import classification changed from the existing chapter 3808 HSN code to HSN 2909 aligned to the global norms can also iron out the supply chain for Indian agriculture.

The forthcoming budget must look to leverage

Interaction, Opinions, Seeds

The prevailing situation makes it imperative for the government to formulate a National Mustard Policy – an idea that we have been championing for several years now. Vivek Puri, Promoter, P Mark Mustard Oil, gives an insight

We would like to start by thanking the government for banning futures trading in mustard on the NCDEX from December 20, 2021, for one year. This is a very timely intervention in a critical situation wherein the prices of mustard and mustard oil have been skyrocketing, making edible oil unaffordable for middle-class consumers. Against an MSP of Rs 4600 per quintal, mustard oilseeds were being traded at prices as high as Rs 8000 per quintal in the open market. The unabated and unbridled increase in mustard oilseed prices throughout the year led to the steep rise in mustard oil prices and compelled a large section of mustard oil consumers to switch to imported edible oils that were available at lower price-points and cheaper brands of mustard oil which are mostly adulterated). This resulted in mustard oil manufacturing operations becoming uncompetitive.

The ban on futures is expected to curb speculation and check the hoarding mentality of certain big players; such practices are known to cause severe price fluctuations, more so in a market that is already volatile. The decision was also made with a view to cooling mustard prices and, to some extent, this has happened.

The prevailing situation makes it imperative for the government to formulate a National Mustard Policy – an idea that we have been championing for several years now. In particular, farmers, who are key stakeholders, need to be one of the main areas of focus in the proposed policy. Mustard is a very important crop from a national perspective. India is the world’s fourth-largest cultivator of mustard, and the mustard crop accounts for over 28 per cent of India’s oilseeds production. The total area under mustard cultivation is over 25 lakh hectares and mustard production for 2020-21 touched a whopping 9.12 million tonnes despite significant pre-harvesting crop losses in Rajasthan caused by hailstorms.

Mustard and mustard oil have been a part of India’s culinary heritage for several millennia and a National Mustard Policy would be an ideal way to nurture, safeguard and promote this legacy. Moreover, since India has age-old capabilities for manufacturing traditional cold-pressed mustard oil, this home-grown industry aligns admirably with the government’s vision for self-reliance as exemplified by the Atmanirbhar Bharat Abhiyaan. As an extension of this endeavour, the government should also take proactive measures to protect mustard oil from the onslaught of imported edible oils.

In this context, another important policy measure would be to allow the export of branded mustard oil in bulk. Currently, only small packs are allowed and they must compulsorily be labelled ‘For External Use Only’ for the US and European Union markets. The government should lobby with the relevant international regulatory authorities to get this inaccurate and misleading labelling requirement removed. The global reputation of mustard oil as a natural, healthy cooking medium has been growing in recent years and the export of Indian mustard oil has the potential to create new opportunities for both farmers and manufacturers. With the advent of a free-trade market, the world has become a global village in which consumer preferences are changing with the times; We, therefore, propose that the government should facilitate both exports and imports of edible oil. To this end, the government should also consider providing subsidies to encourage exports.

The proposed National Mustard Policy should also explore the possibilities of significantly expanding the area under cultivation by developing mustard farming in states like Assam and Jharkhand where the weather conditions are suitable for mustard. The mustard crop requires two irrigation cycles during the season, and both the states have adequate water resources. Moreover, the agricultural fields in those states are not used for any winter crops after paddy harvesting, so mustard cultivation can enhance productivity and profitability for the farmers there.

The policy should also promote organic mustard cultivation in India as part of the Atmanirbhar Bharat Mission. The consumption of organic products as part of a healthy, holistic lifestyle in urban areas is on the rise. Organic mustard oil could also have high export potential. India already produces a significant quantity of organic mustard, and with China producing a very limited amount, this could be another area of opportunity.

Yet another key focus area is mustard oilcake (known as Sarson Khal), which often gets ignored even though it is an integral part of the mustard value chain. The oilcake is largely used as part of cattle feed and also has farming applications as a safe, chemical-free natural fertiliser. The government should promote research and investments in the development of mustard oilcake. Any value addition achieved by such research will go a long way in supporting dairy farmers and will also benefit consumers as mustard oil prices can be expected to ease as a result.

Understandably, the rollout of such a policy requires infrastructure, supporting systems and networking capabilities. To this end, we have, in the past, recommended the constitution of a Mustard Oil Development Board. Examples of the effectiveness of such an institution can be seen in the Malaysian Palm Oil Board, the American Soybean Association and Spain’s International Olive Council. All these organisations have been successful in marketing their countries’ oil to the world; so why should mustard oil be left behind?

As India’s mustard oil industry emerges from the shadow of the pandemic, the time is just right for formulating and implementing a mustard policy. It is the need of the hour and must be prioritised.

The prevailing situation makes it imperative for

Agrotech

Agriculture Intelligence has announced a multi-year partnership with NAU Country for its award-winning AI platform Agroview.

Agriculture Intelligence, a precision agriculture-science company combining automation, remote sensing and artificial intelligence to provide cloud-based, precision data for specialty crops, has announced a multi-year partnership with NAU Country for its award-winning AI platform Agroview.

NAU Country is America’s original Multi-Peril Crop Insurance (MPCI) company and one of the largest federal crop insurance providers in the United States, specialising in MPCI, Crop-Hail, and Named Peril insurance products. The company is part of QBE Insurance Group Limited, a global insurance leader focused on helping solve unique customer risks worldwide.

Matthew Donovan, CEO of Agriculture Intelligence and Product Officer for Agroview said, “We believe sampling methods are a thing of the past. Drone technology must be complimented by smart technology and Agroview drives business value. The guessing game is over.”

“At NAU Country, we have high standards for our technology partners. We have heavily invested in drone technology, but knew that with the right partner we could do even more – we could use flight imagery and machine learning to help automate tree counts.” said Chief Marketing and Technology Officer Michael Deal at NAU Country.

Agriculture Intelligence has announced a multi-year partnership

Agro Universities, AgroPolicy, Agrotech

Ministry to provide grant of up to Rs 10 lakhs to agricultural institutes for purchase of drones

In a major boost to promote precision farming in India, the Union Ministry of Agriculture and Farmers Welfare has issued a guideline to make drone technology affordable to the stakeholders.

The guidelines of Sub-Mission on Agricultural Mechanization (SMAM) have been amended which envisages granting 100 per cent of the cost of agriculture drone or Rs 10 lakhs, whichever is less, as a grant for the purchase of drones by the farm machinery training and testing institutes, ICAR institutes, Krishi Vigyan Kendras and state agriculture universities for taking up large scale demonstrations of this technology on the farmers’ fields.

The Farmers Producers Organizations (FPOs) would be eligible to receive a grant up to 75 per cent of the cost of agriculture drones for its demonstrations on the farmers’ fields.

A contingency expenditure of Rs 6,000 per hectare would be provided to implementing agencies that hire drones for demonstrations from Custom Hiring Centres, Hi-tech Hubs, drone manufacturers and start-ups.

To provide agricultural services through drone application, 40 per cent of the basic cost of the drone and its attachments or Rs 4 lakhs, whichever less would be available as financial assistance for drone purchase by existing custom hiring centres which are set up by a cooperative society of farmers, FPOs and rural entrepreneurs.

The new CHCs or the Hi-tech Hubs that will be established by the cooperative societies of farmers, FPOs and rural entrepreneurs with financial assistance from SMAM, RKVY or any other Schemes can also include Drone as one of the machines along with other agricultural machines in the projects of CHCs/Hi-tech Hubs.

Agriculture graduates establishing custom hiring centres would be eligible to receive 50 per cent of the basic cost of a drone and its attachments or up to Rs 5 lakhs in grant support for drone purchases. Rural entrepreneurs should have passed the class tenth examination with the remote pilot license from the institute specified by the Director-General of Civil Aviation(DGCA) or from any authorised remote pilot training organisation.

The subsidised purchase of agriculture drones for CHCs/Hi-tech Hubs will make the technology affordable, resulting in their widespread adoption.

The Department of Agriculture & Farmers Welfare has also brought out Standard Operating Procedures (SOPs) for use of Drone application with pesticides for crop protection in agricultural, forestry, non-cropped areas.

Ministry to provide grant of up to

Finance

We expect Union Budget 2022-23 to accelerate the progression of the biofuels industry that facilitates the fulfilment of India’s COP 26 summit Panchamrit commitments besides positively impacting energy security, farming community and economy as a whole. Specifically, interventions for the un-bottlenecking achievement of the E20 ethanol blending program, SATAT target for CBG and institutionalising Flex-Fuel policy in the transportation sector, would be of great help. We also urge that budget unveils a definitive roadmap for decarbonising the aviation sector by inducting sustainable aviation fuel into the energy mix.

We expect Union Budget 2022-23 to accelerate

Supply Chain, Trade

Emerges as largest exporter of gherkins in world

India has become the largest exporter of pickling cucumber, which is globally known by the name of gherkins or cornichons. During the financial year of 2021 (April-October), the country exported 1,23,846 MT of cucumber and gherkins worth $114 million.

As per the directions of the Ministry of Commerce & Industry, APEDA undertook a series of initiatives in infrastructure development, product promotion in the global market and adherence to food safety management systems in processing units.

In India, the cultivation, processing and export business of gherkins began in the year of 1990s with a modest beginning in Karnataka and later extended to the neighbouring states of Tamil Nadu, Andhra Pradesh and Telangana. On average, a gherkin farmer produces 4 metric tonne per acre per crop and earns about Rs 80,000 with a net income of Rs 40,000.

Nearly 15 per cent production of the world’s gherkin requirement is grown in India. Currently, it is exported to more than 20 countries, with major destinations being North America, European countries and Oceanic countries such as the US, France, Germany, Australia, Spain, South Korea, Canada, Japan, Belgium, Russia, China, Sri Lanka and Israel.

Apart from its export potential, the gherkin industry plays a key role in the creation of rural employment. In India, the cultivation of gherkins is carried out under contract farming by around 90,000 small and marginal farmers with an annual production area of 65,000 acres. There are 51 major companies in India, which produces and exports gherkins in drums and ready-to-eat consumer packs. All gherkin manufacturing and exporting companies are either ISO, BRC, IFS, FSSC 22000 certified and HACCP certified or possess all the certifications. Many companies have adopted social audits. Ensuring all the statutory benefits to its employees.

APEDA has played a significant role in the promotion of export of processed vegetables and it has been providing financial assistance for the development of infrastructure and enhancing the quality of processed gherkins, products promotion in the international market and implementation of food safety management systems in the processing units.

Emerges as largest exporter of gherkins in

Interaction, Opinions

Despite the success in terms of production that has ensured food security in the country, food inflation and volatility in prices continue to remain high causing inconvenience to consumers and uneven income for farmers

Agriculture continues to be a dominating employment generating sector and contributes a significant proportion to the country’s GDP. Even in the unfortunate pandemic, the sector climbed new heights with record production of various food grains, exhibiting resilience and ensuring food security. Despite the success in terms of production that has ensured food security in the country, food inflation and volatility in prices continue to remain high causing inconvenience to consumers and uneven income for farmers. Besides pandemic wrecking substantial physical, social, economic and emotional havoc on all the stakeholders of the Indian agricultural system, locust infestation from East Africa to India, Natural calamities, and depleting natural resources only added to the sector’s woes. 

Even though the policymakers accelerated a raft of measures and announced reforms to give thrust to the sector, it has reached an inflection point that needs immediate attention. Thus, the forthcoming budget offers an opportunity to fix an array of ancillary problems and fast run the wheels of reforms to accelerate the growth engine of the Indian agriculture sector.

Alignment of Micro-irrigation coverage with ambitious Vision India@2047

While the government is working on the blueprint for India@2047 to be ‘future ready’, it is important to accelerate India’s growth and adoption towards new-age agriculture practices with optimum utilisation of resources. The average penetration of micro-irrigation in the irrigated area (drip and sprinkler) is estimated at 17 per cent which is much lesser compared to countries like Israel (90 per cent), Russia (78 per cent), Spain (75 per cent), the US (55 per cent) and Brazil (52 per cent). We need to have an ambitious target and align the execution process to take micro-irrigation coverage to 60-70 per cent in the next 25 years. 

Identifying areas and crops to integrate the benefit of micro-irrigation with structured governance and execution strategy will help the country climb a newer height of fiscal growth. To do so, the government may create five years bucket of appropriate execution and monitoring roadmap for the next 25 years backed by adequate budgetary support consistently.

Process streamlining measures in irrigation subsidy 

While the micro-irrigation coverage has benefitted millions of farmers, the scheme implementation leaves a lot to desire at the execution level. The delays in the disbursal of micro-irrigation subsidies under the PMKSY program are hampering its progress. Online portal for an end-to-end process execution and visibility, transparency in the process for fund disbursement, ensuring checkpoints at various stages and adherence to timelines would bring the efficiency in subsidy disbursal and support farmers to be debt-free much conveniently.

Providing infrastructure status to the micro-irrigation industry

Infrastructure status would help the micro-irrigation manufacturer (95 per cent of which comes under MSME) in reduced operating costs, thereby accelerating the industry growth as well as bringing the equipment cost down for the farmer community.

Aligning different schemes together for exponential benefit – Solar and Micro-irrigation, Agriculture alongside Solar installations, and others

Focus on renewable energy like solar would ensure energy security in the agriculture sector as well as in the rural landscape and address environmental concerns. Making farmers energy-sufficient would also reduce the burden on government energy subsidy bills. Solar installation-friendly agriculture would help farmers with reduced operational costs, boost land utilization and improve overall income.

Diversification programs to increase crop productivity 

12 per cent of the cropped area under fruits and vegetables (F&V) leads to 24 per cent in value terms, in contrast to 13 per cent area under oilseeds which gives only 6 per cent in value terms because of lack of scalability. Policymakers may consider promoting domestic oilseeds and oil palm cultivation with higher productivity measures to address the demand cycle. Similarly, disrupting rice cultivation that covers more area and water utilization through drip technology would improve yield, save water and reduce carbon emissions. Drip irrigation adoption also has the potential to facilitate crop diversification thus, making a direct impact on farmer incomes.

Policy & budget outlay for integrated climate smart agriculture practices

Climate change has led to reduced crop yields and farm productivity. Besides, the increased occurrence of invasive pests, weather variability, poor agriculture practices has also added to the deteriorating situation of climate change. The agriculture sector is one of the main contributors to the climate problem. It currently generates 19–29 per cent of total greenhouse gas (GHG) emissions. A shift towards climate-smart agriculture practices through proper policy and financial outlay can go a long way in achieving sustainable growth.

Focus on creating infrastructures to support innovation and digitalisation in Agriculture

Special focus and fund allocation in the upcoming budget for infrastructure in rural areas would support the digitalisation of agriculture and put the sector on the fast track. Currently, India is spending less than 1 per cent of Agri GDP in R&D. An Agri innovation fund, which supports ag-tech solutions, start-ups, and digitalisation at different levels of the Agri value chain can transform agriculture economy in the future.

Interest subsidy on agriculture for long term loans

Access to credit remains one of the critical elements in a sustainable and more importantly a growing ecosystem. Interest subsidy on agriculture for long-term loans to help farmers with continual investment in farm mechanisation and building state-of-the-art infrastructure would go a long way to develop a sustainable model in agriculture. Credit Guarantee Fund Scheme for adopting micro-irrigation similar to CGTMSE for MSMEs will be helpful where initial support can be provided by the government.

Special budgetary assistance for micro-irrigation to state government to overcome covid impact

The financial strain caused by the COVID-19 pandemic has left many states across the country to slash the budget for micro-irrigation. The policymakers should consider supporting the states through an additional corpus of funds either by direct special assistance programme or increasing the existing Micro Irrigation Fund (MIF) set up under NABARD to facilitate the states in mobilising resources for expanding coverage of micro-irrigation.

Despite the success in terms of production

Floriculture, Horticulture

About 44 improved varieties in nine crops were recommended for the different agro-climatic zones of the country during the meeting

The ICAR-Directorate of Floricultural Research, Pune, Maharashtra recently organised 30th Annual Group Meeting of All India Coordinated Research Project (AICRP) on floriculture.

Dr Anand Kumar Singh, Deputy Director General (Horticultural Science), ICAR marked his presence as the Chief Guest along with Dr Vikramaditya Pandey, ADG (Horticultural Science), ICAR and Dr BK Pandey, ADG (Horticultural Science), ICAR as the Guests of Honor during the occasion.

Earlier, welcoming the dignitaries, Dr KV Prasad, Director, ICAR-DFR & Project Coordinator, AICRP on Floriculture, Pune presented the Project Coordinators Report (a compilation of Salient Research Achievements of the Project during 2020-21) and the ATR.

About 44 improved varieties in nine crops were recommended for the different agro-climatic zones of the country during the meeting.

About 44 improved varieties in nine crops

Agro chems – Pesticides, Agrotech, Start ups, Sustainability

The award will recognise outstanding achievements in the field of biopesticides and their impact on crop protection

The Annual World BioProtection Summit & Awards will be held at the NEC in Birmingham, UK in May 2022. A key part of the three-day event is the World Bioprotection Awards and Gala dinner, on May 23, 2022, which will gather collaborators from across the world to recognise outstanding achievements in the field of biopesticides and their impact on crop protection.

This year, ten awards are open for nomination:

  1. New Bioinsecticide Product
  2. New Biofungicide Product
  3. New Bionematicide Product
  4. New Biochemical Product
  5. New Biostimulants Product
  6. New Biofertilizer Product
  7. Innovative Research Project of The Year
  8. Industry Collaboration
  9. BioTech Start-up Business of The Year
  10. Outstanding Achievement

Attracting delegates from Europe, Asia and the Americas, the World BioProtection Awards is the perfect platform for any biocontrol business to highlight their achievements and gain the recognition they deserve.

The award will recognise outstanding achievements in

Supply Chain, Trade

Launches robust campaign spanned across the year supported easy access to delicious South African produce to Indian consumers

Hortgro India ended 2021 on a positive note with a remarkable upsurge in demand for South African apples and pears in the Indian market. Promoting the excellent produce from South Africa in India, Hortgro conducted multiple marketing activities in 2021, reaching out to key stakeholders to increase awareness and affinity about the beautiful fruits from the beautiful country. The robust campaign spanned across the year supported easy access to delicious South African produce to Indian consumers.

A variety of apples and pears ranging from Pink Lady Apples, Royal Gala, and Granny Smith to Vermont Beauty, Forelle, and Packham Pears adorned the Indian markets.

Sachin Khurana, India Representative, Hortgro said, “The South African pome fruit growers, packers, and exporters are extremely delighted with the love Indian consumers have showered on South African Apples & Pears. 2021 has seen phenomenal growth in terms of imports from South Africa and we are committed to supplying Indian consumers with excellent quality and great tasting products. I see a lot of interest and enthusiasm from large importers and retailers from India about the business possibility that South African produce brings.”

South African Apples and Pears are now easily available at modern retailers, neighbourhood stores, local pushcart vendors as well as leading online stores.

Launches robust campaign spanned across the year

Bamboo industry

Discussions were held on bamboo propagation, cultivation and management

Rain Forest Research Institute recently organised a week-long training on bamboo resource development in Assam. Dr TC Bhuyan, Consultant North East Cane and Bamboo Development Council delivered a lecture on the topic “Bamboo Propagation, Cultivation and Management” for officers of Indian Forest Service to address the livelihood concerns of communities.

Discussions were held on bamboo propagation, cultivation

Finance, Seeds

UPL’s agreement with Sinagro will strengthen grain orientation strategy in Brazil

UPL and other shareholders in Sinagro Produtos Agropecuarios, Brazil, have announced an agreement in which Bunge will acquire a 33 per cent stake in Sinagro to strengthen its grain orientation strategy in Brazil.

Sinagro is a major reseller of grains and agricultural products with a significant presence in Brazil’s ‘Cerrado’ savanna region. Bunge is one of the world leaders in sourcing, processing, and supplying oilseed and grain products and ingredients. The deal announced today is subject to approval by Brazil’s antitrust body, Conselho Administrativo de Defesa Econômica (‘CADE’).

Sinagro was one of the first signatory companies to join Bunge’s “Sustainable Partnership” a groundbreaking initiative, launched in 2021, whereby Bunge helps grain resellers set up socio-environmental assessment systems for suppliers – including satellite monitoring – at the farm level. Program participants can adopt independent geospatial imaging services or use Bunge’s structure at no cost.

UPL's agreement with Sinagro will strengthen grain

Agro chems – Pesticides, Agrotech

Natutec Drive has proved to be a cost-effective and accurate way of controlling pests

Koppert’s new applicator for predatory beneficial in protected strawberry crops, Natutec Drive, has produced some excellent results in its first commercial season in the UK.

Feedback from growers shows the Natutec Drive has proved to be a cost-effective and accurate way of controlling pests, taking the use of beneficial and their efficacy to a new level.

Drive’s hi-tech dispersal system, usually mounted on a tractor-drawn trailer, employs a central 60-litre rotating drum that feeds via a hopper into boom-mounted distribution tubes, transporting product via a positive airflow onto the crop.

The operator can select products and dose accurately and quickly using touch screen controls mounted on the tractor. “Our trials have repeatedly shown that predator delivery rates are consistently accurate,” says Koppert technical consultant Jasper Hubert. “And costs have also been dramatically reduced.”

A grower survey showed it took eight to nine workers an average of 47 minutes to treat 1 ha by hand, but with the Natutec Drive one person could treat the same area in 55 minutes, seven to eight times faster. “This produced an average saving of just over £40/ha per application,” says Hubert. “For a 28ha farm carrying out 11-12 applications per season, the average in the survey, this would save a total of around £9600 per year, so the machine more than pays for itself.”

The design also ensures simple filling even when mixing large quantities, keeping refills to a minimum and speeding up the application process. “We had a few electrical glitches and carried out some minor modifications to individual machines,” says Hubert.

All Natutec Drives are custom built and available on lease hire from Agrovista, Koppert’s partner on fruit crops in the UK.

Natutec Drive has proved to be a

Agro Universities

The MoU has been mutually agreed to be extended for the next five years

The ICAR-Indian Institute of Soil & Water Conservation, Dehradun, Uttarakhand organised the meeting to extend the MoU with the Eco-Task Force (127 Infantry Battalion (TA) Ecological, Garhwal Rifles Garhi Cantonment, Dehradun, Uttarakhand).

The meeting was held between Dr M Madhu, Director, ICAR-IISWC, Dehradun and Col Rohit Srivastav, Commanding Officer, ETF, Dehradun. The MoU has been mutually agreed to be extended for the next five years with an additional objective of jointly developing a Model Village in Jounsar Bhabar Area of Uttarakhand.

Both the organisations underwent the collaboration during 2016 that was again reshaped during 2019 for the period of two years ending in December 2021.

The MoU has been mutually agreed to