Monday, June 28, 2010
Chinese Lessons in Grain Storage
Prof. K.V. Thomas
Minister of State for Agriculture, Consumer Affairs, F&P.D
An infrastructure deficit affecting stable farm incomes, dominate of price-stability and grain security at times of grave metrological crises such as two failed consecutive monsoons is the lack of quality and quality of our grain storage infrastructure. The storage system developed under the public sector (FCI, CWC, SWC’s) and some private sector investment (eg. Adanis under public sector guarantees) caters to storing grain procured under minimum support price operations and issue through the public distribution system using a huge network of rail and road logistics.
In addition the storage holds the 14 million tonnes of grain buffer stocks activated on a crisis. In 2000, a high powered committee appointed by government estimated that an additional 12.7 million tones of ware housing was required in view of higher quantum of procurement owing to high overall productivity and increasing demand in the PDS. This would call for an additional investment about Rs.6000 crores Warehousing being a commercially feasible operation, the consensus was in favour of facilitating private sector investment as in airports and highways on a cost plus basis. The operational costs of FCI’s own warehousing were considered prohibitive for higher levels of investment. After ten years though a series of incentives such as relaxed FDI norms, income tax waivers technology import relaxations and potential under viability gap have been offered, considerable investment has been elusive and only a fraction of the target has fructified. The National Policy on storage handling and transport promised 20 years guarantees for Private Sector investment, but the schemes formulated by the food department on five and now seven years guarantees how low off take, since the return on investment is restricted and dealing with sector agencies in impossible for medium investors.
Meanwhile avoidable storage losses of procured grains continue. Though the FCI estimates a modest 0.4% as storage and 0.2% as transport losses, export studies show upto 10% losses from post harvest to consumption point. The National Institute of Grain Management, Hapur, computed 4.75% losses of Wheat in the procurement Mandis. In a Country where the lowest income quintiles of population suffer severe malnutrition, this is a shortfall we cannot afford. The quality of our existing storage infrastructure has also stagnated in terms of technology. Bag storage system involves labour intensive and time consuming, and quality compromising transport methods. None of our Bag stocked silos have temperature control or scientifically monitored fumigation. Rodent control looks fine in paper, but it is common for media to bring out stories where rodents emerge as significant beneficiaries of our well intentioned grains procured for human consumption. While our Asian neighbors have marched forward with relatively high science based management of grain storage, our technology could not keep pace. Managerial efficiency, science based innovative climate control technology, rodent control and logistics intelligence has not been adopted for efficiency gains.
It was in this back drop that I led a delegation of professionals from the public sector to study the Chinese experience in grain storage and management early this month. The visit took us to the national ministry, the Chinese State administration of grain, (SGA), the State Grain laboratories , the grain standards organization (all in Beijing) The State of the art commodity exchange in Dalian, Beilang Corporation handling logistics, Guamao grain storage engineering company and the provincial storage godowns of Shanghai and Guangzhou.
The experience has been instructive. Firstly China has moved in favour of public sector mediated operations in all the phases of farm gate to home gate grain movement. It procures and stores in the range of 100-140 million tones (official figures are not stated) but selectively bought from high productivity provinces. State prices are only available to provinces which excel in productivity and not as a rule. Due to high demand by double digit growth Chinese output of 0.52 Billion tones of Wheat rice and continue to be supplemented by import arrangements. China does not operate a comparable public distribution system except when huge calamities occur. Procured grain is cleaned, packed and marketed by about 3000 ‘private’ sector companies most of which have state support or party guidance at market dictated rates Grain prices are high at Rs.150-300 per kg in the retail markets we visited. Price control exists at procurement and wholesale points, but wage increments have been the supply side control than fiat methods. The Chinese storage capacity has witnessed a quantum jump under the State grain administration with State of the art multi modal (ship to track, Rail, Barge and ship to ship) automated grain transmission (Multi Modal Grain Terminals)as in Shanghai capable of handling 2000 tonnes per hour, to the highly mechanized provincial granary in Guangzhou with temperature controlled and fumigated 100,000 tonne small storage, China shows proof of its intensive infrastructure up gradations funded by high taxes World Bank assistance and trade surplus the investment ranges from farm based scientific storage instruction to state of the art standardization labs in Beijing. China has positioned a 1, 76,000 strong extension work force in its grain producing areas to educate farmers on storage practices. Granaries are effectively managed at near full capacity and storage costs are built into cost of grain at the consumers’ end.
The Chinese experience shows us that dedicated single window approach is inevitable in grain storage as in highways or airport development. It is high time that we learnt from these impressive Asian achievements and emulated the same. The food department has been asked to develop a blue print for augmenting scientific storage with the following pillars. Firstly, a dedicated special purpose vehicle (SPV) be floated with private sector participation, project financial capability and marketing skill. All the private sector guarantee schemes have to be repackaged upon consultation with industry and storage policy amended to recognize the fact that built storage has to have some redundancy and this does not be come later a point of attack from our audit system.
Storage capacity has a lag phase before full utilization and this has to be factored as a additional cost. The SPV can launch an international and national showcasing of investment opportunity and facilitate such projects. Prepare an up gradation plan for existing warehousing with state of the art gadgetry. It should develop globally competitive grain quality and standards organization in public sphere, if possible by building on existing infrastructure. Lastly but not least it has to developing quality grain storage professionals encompassing a range of skills in IT, agriculture, engineering and management. It is hoped that this new initiative, which I have proposed to be christened ‘Dhaanya Raksha Mission’ will be a success in the coming years. We cannot simply afford wait to act in this front.
*****
Prof. K.V. Thomas
Minister of State for Agriculture, Consumer Affairs, F&P.D
An infrastructure deficit affecting stable farm incomes, dominate of price-stability and grain security at times of grave metrological crises such as two failed consecutive monsoons is the lack of quality and quality of our grain storage infrastructure. The storage system developed under the public sector (FCI, CWC, SWC’s) and some private sector investment (eg. Adanis under public sector guarantees) caters to storing grain procured under minimum support price operations and issue through the public distribution system using a huge network of rail and road logistics.
In addition the storage holds the 14 million tonnes of grain buffer stocks activated on a crisis. In 2000, a high powered committee appointed by government estimated that an additional 12.7 million tones of ware housing was required in view of higher quantum of procurement owing to high overall productivity and increasing demand in the PDS. This would call for an additional investment about Rs.6000 crores Warehousing being a commercially feasible operation, the consensus was in favour of facilitating private sector investment as in airports and highways on a cost plus basis. The operational costs of FCI’s own warehousing were considered prohibitive for higher levels of investment. After ten years though a series of incentives such as relaxed FDI norms, income tax waivers technology import relaxations and potential under viability gap have been offered, considerable investment has been elusive and only a fraction of the target has fructified. The National Policy on storage handling and transport promised 20 years guarantees for Private Sector investment, but the schemes formulated by the food department on five and now seven years guarantees how low off take, since the return on investment is restricted and dealing with sector agencies in impossible for medium investors.
Meanwhile avoidable storage losses of procured grains continue. Though the FCI estimates a modest 0.4% as storage and 0.2% as transport losses, export studies show upto 10% losses from post harvest to consumption point. The National Institute of Grain Management, Hapur, computed 4.75% losses of Wheat in the procurement Mandis. In a Country where the lowest income quintiles of population suffer severe malnutrition, this is a shortfall we cannot afford. The quality of our existing storage infrastructure has also stagnated in terms of technology. Bag storage system involves labour intensive and time consuming, and quality compromising transport methods. None of our Bag stocked silos have temperature control or scientifically monitored fumigation. Rodent control looks fine in paper, but it is common for media to bring out stories where rodents emerge as significant beneficiaries of our well intentioned grains procured for human consumption. While our Asian neighbors have marched forward with relatively high science based management of grain storage, our technology could not keep pace. Managerial efficiency, science based innovative climate control technology, rodent control and logistics intelligence has not been adopted for efficiency gains.
It was in this back drop that I led a delegation of professionals from the public sector to study the Chinese experience in grain storage and management early this month. The visit took us to the national ministry, the Chinese State administration of grain, (SGA), the State Grain laboratories , the grain standards organization (all in Beijing) The State of the art commodity exchange in Dalian, Beilang Corporation handling logistics, Guamao grain storage engineering company and the provincial storage godowns of Shanghai and Guangzhou.
The experience has been instructive. Firstly China has moved in favour of public sector mediated operations in all the phases of farm gate to home gate grain movement. It procures and stores in the range of 100-140 million tones (official figures are not stated) but selectively bought from high productivity provinces. State prices are only available to provinces which excel in productivity and not as a rule. Due to high demand by double digit growth Chinese output of 0.52 Billion tones of Wheat rice and continue to be supplemented by import arrangements. China does not operate a comparable public distribution system except when huge calamities occur. Procured grain is cleaned, packed and marketed by about 3000 ‘private’ sector companies most of which have state support or party guidance at market dictated rates Grain prices are high at Rs.150-300 per kg in the retail markets we visited. Price control exists at procurement and wholesale points, but wage increments have been the supply side control than fiat methods. The Chinese storage capacity has witnessed a quantum jump under the State grain administration with State of the art multi modal (ship to track, Rail, Barge and ship to ship) automated grain transmission (Multi Modal Grain Terminals)as in Shanghai capable of handling 2000 tonnes per hour, to the highly mechanized provincial granary in Guangzhou with temperature controlled and fumigated 100,000 tonne small storage, China shows proof of its intensive infrastructure up gradations funded by high taxes World Bank assistance and trade surplus the investment ranges from farm based scientific storage instruction to state of the art standardization labs in Beijing. China has positioned a 1, 76,000 strong extension work force in its grain producing areas to educate farmers on storage practices. Granaries are effectively managed at near full capacity and storage costs are built into cost of grain at the consumers’ end.
The Chinese experience shows us that dedicated single window approach is inevitable in grain storage as in highways or airport development. It is high time that we learnt from these impressive Asian achievements and emulated the same. The food department has been asked to develop a blue print for augmenting scientific storage with the following pillars. Firstly, a dedicated special purpose vehicle (SPV) be floated with private sector participation, project financial capability and marketing skill. All the private sector guarantee schemes have to be repackaged upon consultation with industry and storage policy amended to recognize the fact that built storage has to have some redundancy and this does not be come later a point of attack from our audit system.
Storage capacity has a lag phase before full utilization and this has to be factored as a additional cost. The SPV can launch an international and national showcasing of investment opportunity and facilitate such projects. Prepare an up gradation plan for existing warehousing with state of the art gadgetry. It should develop globally competitive grain quality and standards organization in public sphere, if possible by building on existing infrastructure. Lastly but not least it has to developing quality grain storage professionals encompassing a range of skills in IT, agriculture, engineering and management. It is hoped that this new initiative, which I have proposed to be christened ‘Dhaanya Raksha Mission’ will be a success in the coming years. We cannot simply afford wait to act in this front.
*****
SPEECH IN ANDHRA PRADESH
Hon’ble Chief Minister Shri Rosaiah ji, Hon. Minster for Agriculture Shri Raghuveera Reddy, MPs, MLAs, Senior Officers of State Government, Farmer brothers and sisters of Andhra Pradesh & West Godawari.
May I congratulate the progressive government of Andhra Pradesh in leading the country in the field of Agriculture during a difficult time. Andhra Pradesh government under Hon. Rosaiah ji & Hon. Agriculture Minister Shri Raghuveera Reddy has achieved unparalleled success in both high growth in agriculture and higher farmer returns. I pay tribute to Andhra’s most Valliant Warrior for the poor, Late Shri Rajasekhar Reddy with whom I enjoyed a deep personal friendship when we were in Lok Sbha together. I am sure that Dr. Reddy’s contribution in making Andhra strong and particularly good for the farming community will go down as a golden period in Indian history. The memory of the departed leader must guide us in future also. I offer tributes to him on this occasion once again.
Andhra overcame unfavourable weather conditions to produce about 209 lakhs metric tonnes of food grains in 2009-10 contributing highly into the national food stocks. It produces the 3rd largest quantum of food grains and topped the productivity of Maize and Bengal Gram. Andhra disburses highest crop & term loans and a sum of Rs.37,574 crores was disbursed in 2009-10. The ‘Polambadi’ scheme of village specific farmer training has resulted in significant reduction in the consumption of pesticides. The State’s interest in improving seed replacement rate, encouraging seed production by farmers and integrated nutrient management and mechanisation is noteworthy. The huge participation of our farmer brothers in Raithu Sadassus like this is an indication of the trust the farmers have with the State Government’s leadership. I must say that the agriculture department and the State’s administration as a whole is as a model for other States to emulate.
The Central Government continues to support the State through numerous other schemes like RKVY, Macro Management of Agriculture, National Food Security Mission, National Horticulture Mission, Micro Irrigation, Extension Reforms, National Bamboo Mission etc. The total allocations of AP under these Schemes are to the extent of Rs.941.19 crores for this year and once the State qualifies again for RKVY, the assistance is likely to increase further substantially. I am sure this will happen in the near future.
Coming to the specific issues related to oil palm cultivation firstly let me congratulate the farmers for helping to address the net shortage India is facing in edible Oil.
As you are aware, we import 8-9 million tonnes of palm Oil at a cost of about 2700 crores annually. Andhra Pradesh came forward to help the country in this difficulty and planted oil palm in West Godawari district initially to an extent of 132 hectares in mid eighties, taking support from Department of Biotechnology and Technology Mission on Oil seeds (TMOP). Now Andhra has oil palm cultivation to the extent of 4,00,000 hectares spread in 11 districts, covering an area of 1,02,132 hectares against an identified potential of 4,20,000 hectares.
Further AP also processes the largest quantity of oil palm in India. With an annual production of 3.5 lakh tonnes, A.P contributes Rs.220 crores to the country. State has also formulated an Oil Palm Act for helping farmers by regulating trade by administered prices. Now I understand that A.P wants to expand area under Oil palm to another 30,000 hectares of which government of India will support, initially 16,000 hectares which will be taken up immediately. To overcome the difficulties in harvesting the tall Palm, the state is organising supply of harvesters on pilot basis through adequate subsidization. State Government is also investing in micro irrigation for the crop. State Government wants Government of India to include Oil Palm under its Micro irrigation programmes.
The Micro Irrigation component of ISOPOM, NFSM and TMC will be retained and 50% central share of system cost for small farmers and marginal farmers and 40% of cost for general farmers is allowable as subsidy. This is allowed under current plan and Minor Irrigation Schemes for Oil Palm can be supported under Minor Irrigation for ISOPOM. The proposals may be sent under ISOPOM implemented by DAC. I understand that the government could not pay costs to the farmers to the extent they would have liked during the last two years.
Therefore, the State had to avail Market Intervention Scheme (MIS) compensatory rates to protect the farmers under the MIS cost of supporting the farmers is borne 50:50 between Central and State Governments. The Central procuring agency shall be NAFED. For March and April 2009, Government of India has approved Market intervention Prices of Rs.5000/- per Metric Tonne. This has helped the State to extend a support of Rs.4.6 crores for the FFB procured in March -April, 2009. The State’s proposal to continue the same is under active consideration.
The State has also proposed Minimum Support Price to Oil Palm. The State can avail the Market Intervention Scheme until the issue of MSP is decided. As you are aware MSP crops require appropriate recommendations from CACP and may take a little time for Government to decide. The import terms of edible Oils can be looked into, in the meantime Government has an open mind in the matter.
Government of India is open to support Govt. of AP in area increase of Oil Palm and mechanization under RKVY or mechanization schemes. A mission for Oil Palm already exists in the Ministry and we must take up as many activities under RKVY and other projects a mission would add, without waiting for new organization. We need to focus on productivity post procurement and processing value addition at this stage.
Apart from policy interventions the ICAR has also invested into Oil Palm research with its dedicated centre in Andhra Pradesh itself. Recently it has been elevated as a directorate. It focuses on hybrid development, production management system, post harvest management etc. Govt. of India spends about Rs.15 crores in the research and development effect in Oil palm.
In the other welfare projects Andhra has shown the ways too. The “Indiramma Scheme” in housing helps 80 lakh poor families while pension schemes for the needy help 75 lakh persons. Self-help groups are being supported by Rs.365 crores and State provides two rupees a kilo rice and pulses at Rs.30/- and vegetable oil at Rs.35/- to poor consumers through the Public Distribution system. The ‘Rajiv Aroggyashri’ Scheme extends unique health benefits to the poor. The emergency health transport under ‘108’ and fixed day health service under ‘104’ helps the most needy of the Society. Scholarship support, water conservation ‘Udyogashri’ are yet another set of exemplary schemes in welfare. Andhra has emerged as a unique example of rapid economic development with a human touch, in the last few years by investing in the people and farmers. A.P government shows the way forward for the country in achieving 10% overall growth and 4% in Agriculture sector. Government of India will be an active partner in Andhra’s efforts and will leave no stone unturned in helping the state’s requirements in the coming months.
Personally the State can consider me as an Ambassador for Andhra in Delhi and any of you can please feel free to meet me any time for my humble assistance. I wish the people and Government of Andhra all the best in its task.
JAI HIND
Hon’ble Chief Minister Shri Rosaiah ji, Hon. Minster for Agriculture Shri Raghuveera Reddy, MPs, MLAs, Senior Officers of State Government, Farmer brothers and sisters of Andhra Pradesh & West Godawari.
May I congratulate the progressive government of Andhra Pradesh in leading the country in the field of Agriculture during a difficult time. Andhra Pradesh government under Hon. Rosaiah ji & Hon. Agriculture Minister Shri Raghuveera Reddy has achieved unparalleled success in both high growth in agriculture and higher farmer returns. I pay tribute to Andhra’s most Valliant Warrior for the poor, Late Shri Rajasekhar Reddy with whom I enjoyed a deep personal friendship when we were in Lok Sbha together. I am sure that Dr. Reddy’s contribution in making Andhra strong and particularly good for the farming community will go down as a golden period in Indian history. The memory of the departed leader must guide us in future also. I offer tributes to him on this occasion once again.
Andhra overcame unfavourable weather conditions to produce about 209 lakhs metric tonnes of food grains in 2009-10 contributing highly into the national food stocks. It produces the 3rd largest quantum of food grains and topped the productivity of Maize and Bengal Gram. Andhra disburses highest crop & term loans and a sum of Rs.37,574 crores was disbursed in 2009-10. The ‘Polambadi’ scheme of village specific farmer training has resulted in significant reduction in the consumption of pesticides. The State’s interest in improving seed replacement rate, encouraging seed production by farmers and integrated nutrient management and mechanisation is noteworthy. The huge participation of our farmer brothers in Raithu Sadassus like this is an indication of the trust the farmers have with the State Government’s leadership. I must say that the agriculture department and the State’s administration as a whole is as a model for other States to emulate.
The Central Government continues to support the State through numerous other schemes like RKVY, Macro Management of Agriculture, National Food Security Mission, National Horticulture Mission, Micro Irrigation, Extension Reforms, National Bamboo Mission etc. The total allocations of AP under these Schemes are to the extent of Rs.941.19 crores for this year and once the State qualifies again for RKVY, the assistance is likely to increase further substantially. I am sure this will happen in the near future.
Coming to the specific issues related to oil palm cultivation firstly let me congratulate the farmers for helping to address the net shortage India is facing in edible Oil.
As you are aware, we import 8-9 million tonnes of palm Oil at a cost of about 2700 crores annually. Andhra Pradesh came forward to help the country in this difficulty and planted oil palm in West Godawari district initially to an extent of 132 hectares in mid eighties, taking support from Department of Biotechnology and Technology Mission on Oil seeds (TMOP). Now Andhra has oil palm cultivation to the extent of 4,00,000 hectares spread in 11 districts, covering an area of 1,02,132 hectares against an identified potential of 4,20,000 hectares.
Further AP also processes the largest quantity of oil palm in India. With an annual production of 3.5 lakh tonnes, A.P contributes Rs.220 crores to the country. State has also formulated an Oil Palm Act for helping farmers by regulating trade by administered prices. Now I understand that A.P wants to expand area under Oil palm to another 30,000 hectares of which government of India will support, initially 16,000 hectares which will be taken up immediately. To overcome the difficulties in harvesting the tall Palm, the state is organising supply of harvesters on pilot basis through adequate subsidization. State Government is also investing in micro irrigation for the crop. State Government wants Government of India to include Oil Palm under its Micro irrigation programmes.
The Micro Irrigation component of ISOPOM, NFSM and TMC will be retained and 50% central share of system cost for small farmers and marginal farmers and 40% of cost for general farmers is allowable as subsidy. This is allowed under current plan and Minor Irrigation Schemes for Oil Palm can be supported under Minor Irrigation for ISOPOM. The proposals may be sent under ISOPOM implemented by DAC. I understand that the government could not pay costs to the farmers to the extent they would have liked during the last two years.
Therefore, the State had to avail Market Intervention Scheme (MIS) compensatory rates to protect the farmers under the MIS cost of supporting the farmers is borne 50:50 between Central and State Governments. The Central procuring agency shall be NAFED. For March and April 2009, Government of India has approved Market intervention Prices of Rs.5000/- per Metric Tonne. This has helped the State to extend a support of Rs.4.6 crores for the FFB procured in March -April, 2009. The State’s proposal to continue the same is under active consideration.
The State has also proposed Minimum Support Price to Oil Palm. The State can avail the Market Intervention Scheme until the issue of MSP is decided. As you are aware MSP crops require appropriate recommendations from CACP and may take a little time for Government to decide. The import terms of edible Oils can be looked into, in the meantime Government has an open mind in the matter.
Government of India is open to support Govt. of AP in area increase of Oil Palm and mechanization under RKVY or mechanization schemes. A mission for Oil Palm already exists in the Ministry and we must take up as many activities under RKVY and other projects a mission would add, without waiting for new organization. We need to focus on productivity post procurement and processing value addition at this stage.
Apart from policy interventions the ICAR has also invested into Oil Palm research with its dedicated centre in Andhra Pradesh itself. Recently it has been elevated as a directorate. It focuses on hybrid development, production management system, post harvest management etc. Govt. of India spends about Rs.15 crores in the research and development effect in Oil palm.
In the other welfare projects Andhra has shown the ways too. The “Indiramma Scheme” in housing helps 80 lakh poor families while pension schemes for the needy help 75 lakh persons. Self-help groups are being supported by Rs.365 crores and State provides two rupees a kilo rice and pulses at Rs.30/- and vegetable oil at Rs.35/- to poor consumers through the Public Distribution system. The ‘Rajiv Aroggyashri’ Scheme extends unique health benefits to the poor. The emergency health transport under ‘108’ and fixed day health service under ‘104’ helps the most needy of the Society. Scholarship support, water conservation ‘Udyogashri’ are yet another set of exemplary schemes in welfare. Andhra has emerged as a unique example of rapid economic development with a human touch, in the last few years by investing in the people and farmers. A.P government shows the way forward for the country in achieving 10% overall growth and 4% in Agriculture sector. Government of India will be an active partner in Andhra’s efforts and will leave no stone unturned in helping the state’s requirements in the coming months.
Personally the State can consider me as an Ambassador for Andhra in Delhi and any of you can please feel free to meet me any time for my humble assistance. I wish the people and Government of Andhra all the best in its task.
JAI HIND
SPEECH IN ANDHRA PRADESH
Hon’ble Chief Minister Shri Rosaiah ji, Hon. Minster for Agriculture Shri Raghuveera Reddy, MPs, MLAs, Senior Officers of State Government, Farmer brothers and sisters of Andhra Pradesh & West Godawari.
May I congratulate the progressive government of Andhra Pradesh in leading the country in the field of Agriculture during a difficult time. Andhra Pradesh government under Hon. Rosaiah ji & Hon. Agriculture Minister Shri Raghuveera Reddy has achieved unparalleled success in both high growth in agriculture and higher farmer returns. I pay tribute to Andhra’s most Valliant Warrior for the poor, Late Shri Rajasekhar Reddy with whom I enjoyed a deep personal friendship when we were in Lok Sbha together. I am sure that Dr. Reddy’s contribution in making Andhra strong and particularly good for the farming community will go down as a golden period in Indian history. The memory of the departed leader must guide us in future also. I offer tributes to him on this occasion once again.
Andhra overcame unfavourable weather conditions to produce about 209 lakhs metric tonnes of food grains in 2009-10 contributing highly into the national food stocks. It produces the 3rd largest quantum of food grains and topped the productivity of Maize and Bengal Gram. Andhra disburses highest crop & term loans and a sum of Rs.37,574 crores was disbursed in 2009-10. The ‘Polambadi’ scheme of village specific farmer training has resulted in significant reduction in the consumption of pesticides. The State’s interest in improving seed replacement rate, encouraging seed production by farmers and integrated nutrient management and mechanisation is noteworthy. The huge participation of our farmer brothers in Raithu Sadassus like this is an indication of the trust the farmers have with the State Government’s leadership. I must say that the agriculture department and the State’s administration as a whole is as a model for other States to emulate.
The Central Government continues to support the State through numerous other schemes like RKVY, Macro Management of Agriculture, National Food Security Mission, National Horticulture Mission, Micro Irrigation, Extension Reforms, National Bamboo Mission etc. The total allocations of AP under these Schemes are to the extent of Rs.941.19 crores for this year and once the State qualifies again for RKVY, the assistance is likely to increase further substantially. I am sure this will happen in the near future.
Coming to the specific issues related to oil palm cultivation firstly let me congratulate the farmers for helping to address the net shortage India is facing in edible Oil.
As you are aware, we import 8-9 million tonnes of palm Oil at a cost of about 2700 crores annually. Andhra Pradesh came forward to help the country in this difficulty and planted oil palm in West Godawari district initially to an extent of 132 hectares in mid eighties, taking support from Department of Biotechnology and Technology Mission on Oil seeds (TMOP). Now Andhra has oil palm cultivation to the extent of 4,00,000 hectares spread in 11 districts, covering an area of 1,02,132 hectares against an identified potential of 4,20,000 hectares.
Further AP also processes the largest quantity of oil palm in India. With an annual production of 3.5 lakh tonnes, A.P contributes Rs.220 crores to the country. State has also formulated an Oil Palm Act for helping farmers by regulating trade by administered prices. Now I understand that A.P wants to expand area under Oil palm to another 30,000 hectares of which government of India will support, initially 16,000 hectares which will be taken up immediately. To overcome the difficulties in harvesting the tall Palm, the state is organising supply of harvesters on pilot basis through adequate subsidization. State Government is also investing in micro irrigation for the crop. State Government wants Government of India to include Oil Palm under its Micro irrigation programmes.
The Micro Irrigation component of ISOPOM, NFSM and TMC will be retained and 50% central share of system cost for small farmers and marginal farmers and 40% of cost for general farmers is allowable as subsidy. This is allowed under current plan and Minor Irrigation Schemes for Oil Palm can be supported under Minor Irrigation for ISOPOM. The proposals may be sent under ISOPOM implemented by DAC. I understand that the government could not pay costs to the farmers to the extent they would have liked during the last two years.
Therefore, the State had to avail Market Intervention Scheme (MIS) compensatory rates to protect the farmers under the MIS cost of supporting the farmers is borne 50:50 between Central and State Governments. The Central procuring agency shall be NAFED. For March and April 2009, Government of India has approved Market intervention Prices of Rs.5000/- per Metric Tonne. This has helped the State to extend a support of Rs.4.6 crores for the FFB procured in March -April, 2009. The State’s proposal to continue the same is under active consideration.
The State has also proposed Minimum Support Price to Oil Palm. The State can avail the Market Intervention Scheme until the issue of MSP is decided. As you are aware MSP crops require appropriate recommendations from CACP and may take a little time for Government to decide. The import terms of edible Oils can be looked into, in the meantime Government has an open mind in the matter.
Government of India is open to support Govt. of AP in area increase of Oil Palm and mechanization under RKVY or mechanization schemes. A mission for Oil Palm already exists in the Ministry and we must take up as many activities under RKVY and other projects a mission would add, without waiting for new organization. We need to focus on productivity post procurement and processing value addition at this stage.
Apart from policy interventions the ICAR has also invested into Oil Palm research with its dedicated centre in Andhra Pradesh itself. Recently it has been elevated as a directorate. It focuses on hybrid development, production management system, post harvest management etc. Govt. of India spends about Rs.15 crores in the research and development effect in Oil palm.
In the other welfare projects Andhra has shown the ways too. The “Indiramma Scheme” in housing helps 80 lakh poor families while pension schemes for the needy help 75 lakh persons. Self-help groups are being supported by Rs.365 crores and State provides two rupees a kilo rice and pulses at Rs.30/- and vegetable oil at Rs.35/- to poor consumers through the Public Distribution system. The ‘Rajiv Aroggyashri’ Scheme extends unique health benefits to the poor. The emergency health transport under ‘108’ and fixed day health service under ‘104’ helps the most needy of the Society. Scholarship support, water conservation ‘Udyogashri’ are yet another set of exemplary schemes in welfare. Andhra has emerged as a unique example of rapid economic development with a human touch, in the last few years by investing in the people and farmers. A.P government shows the way forward for the country in achieving 10% overall growth and 4% in Agriculture sector. Government of India will be an active partner in Andhra’s efforts and will leave no stone unturned in helping the state’s requirements in the coming months.
Personally the State can consider me as an Ambassador for Andhra in Delhi and any of you can please feel free to meet me any time for my humble assistance. I wish the people and Government of Andhra all the best in its task.
JAI HIND
SPEECH IN ANDHRA PRADESH
Hon’ble Chief Minister Shri Rosaiah ji, Hon. Minster for Agriculture Shri Raghuveera Reddy, MPs, MLAs, Senior Officers of State Government, Farmer brothers and sisters of Andhra Pradesh & West Godawari.
May I congratulate the progressive government of Andhra Pradesh in leading the country in the field of Agriculture during a difficult time. Andhra Pradesh government under Hon. Rosaiah ji & Hon. Agriculture Minister Shri Raghuveera Reddy has achieved unparalleled success in both high growth in agriculture and higher farmer returns. I pay tribute to Andhra’s most Valliant Warrior for the poor, Late Shri Rajasekhar Reddy with whom I enjoyed a deep personal friendship when we were in Lok Sbha together. I am sure that Dr. Reddy’s contribution in making Andhra strong and particularly good for the farming community will go down as a golden period in Indian history. The memory of the departed leader must guide us in future also. I offer tributes to him on this occasion once again.
Andhra overcame unfavourable weather conditions to produce about 209 lakhs metric tonnes of food grains in 2009-10 contributing highly into the national food stocks. It produces the 3rd largest quantum of food grains and topped the productivity of Maize and Bengal Gram. Andhra disburses highest crop & term loans and a sum of Rs.37,574 crores was disbursed in 2009-10. The ‘Polambadi’ scheme of village specific farmer training has resulted in significant reduction in the consumption of pesticides. The State’s interest in improving seed replacement rate, encouraging seed production by farmers and integrated nutrient management and mechanisation is noteworthy. The huge participation of our farmer brothers in Raithu Sadassus like this is an indication of the trust the farmers have with the State Government’s leadership. I must say that the agriculture department and the State’s administration as a whole is as a model for other States to emulate.
The Central Government continues to support the State through numerous other schemes like RKVY, Macro Management of Agriculture, National Food Security Mission, National Horticulture Mission, Micro Irrigation, Extension Reforms, National Bamboo Mission etc. The total allocations of AP under these Schemes are to the extent of Rs.941.19 crores for this year and once the State qualifies again for RKVY, the assistance is likely to increase further substantially. I am sure this will happen in the near future.
Coming to the specific issues related to oil palm cultivation firstly let me congratulate the farmers for helping to address the net shortage India is facing in edible Oil.
As you are aware, we import 8-9 million tonnes of palm Oil at a cost of about 2700 crores annually. Andhra Pradesh came forward to help the country in this difficulty and planted oil palm in West Godawari district initially to an extent of 132 hectares in mid eighties, taking support from Department of Biotechnology and Technology Mission on Oil seeds (TMOP). Now Andhra has oil palm cultivation to the extent of 4,00,000 hectares spread in 11 districts, covering an area of 1,02,132 hectares against an identified potential of 4,20,000 hectares.
Further AP also processes the largest quantity of oil palm in India. With an annual production of 3.5 lakh tonnes, A.P contributes Rs.220 crores to the country. State has also formulated an Oil Palm Act for helping farmers by regulating trade by administered prices. Now I understand that A.P wants to expand area under Oil palm to another 30,000 hectares of which government of India will support, initially 16,000 hectares which will be taken up immediately. To overcome the difficulties in harvesting the tall Palm, the state is organising supply of harvesters on pilot basis through adequate subsidization. State Government is also investing in micro irrigation for the crop. State Government wants Government of India to include Oil Palm under its Micro irrigation programmes.
The Micro Irrigation component of ISOPOM, NFSM and TMC will be retained and 50% central share of system cost for small farmers and marginal farmers and 40% of cost for general farmers is allowable as subsidy. This is allowed under current plan and Minor Irrigation Schemes for Oil Palm can be supported under Minor Irrigation for ISOPOM. The proposals may be sent under ISOPOM implemented by DAC. I understand that the government could not pay costs to the farmers to the extent they would have liked during the last two years.
Therefore, the State had to avail Market Intervention Scheme (MIS) compensatory rates to protect the farmers under the MIS cost of supporting the farmers is borne 50:50 between Central and State Governments. The Central procuring agency shall be NAFED. For March and April 2009, Government of India has approved Market intervention Prices of Rs.5000/- per Metric Tonne. This has helped the State to extend a support of Rs.4.6 crores for the FFB procured in March -April, 2009. The State’s proposal to continue the same is under active consideration.
The State has also proposed Minimum Support Price to Oil Palm. The State can avail the Market Intervention Scheme until the issue of MSP is decided. As you are aware MSP crops require appropriate recommendations from CACP and may take a little time for Government to decide. The import terms of edible Oils can be looked into, in the meantime Government has an open mind in the matter.
Government of India is open to support Govt. of AP in area increase of Oil Palm and mechanization under RKVY or mechanization schemes. A mission for Oil Palm already exists in the Ministry and we must take up as many activities under RKVY and other projects a mission would add, without waiting for new organization. We need to focus on productivity post procurement and processing value addition at this stage.
Apart from policy interventions the ICAR has also invested into Oil Palm research with its dedicated centre in Andhra Pradesh itself. Recently it has been elevated as a directorate. It focuses on hybrid development, production management system, post harvest management etc. Govt. of India spends about Rs.15 crores in the research and development effect in Oil palm.
In the other welfare projects Andhra has shown the ways too. The “Indiramma Scheme” in housing helps 80 lakh poor families while pension schemes for the needy help 75 lakh persons. Self-help groups are being supported by Rs.365 crores and State provides two rupees a kilo rice and pulses at Rs.30/- and vegetable oil at Rs.35/- to poor consumers through the Public Distribution system. The ‘Rajiv Aroggyashri’ Scheme extends unique health benefits to the poor. The emergency health transport under ‘108’ and fixed day health service under ‘104’ helps the most needy of the Society. Scholarship support, water conservation ‘Udyogashri’ are yet another set of exemplary schemes in welfare. Andhra has emerged as a unique example of rapid economic development with a human touch, in the last few years by investing in the people and farmers. A.P government shows the way forward for the country in achieving 10% overall growth and 4% in Agriculture sector. Government of India will be an active partner in Andhra’s efforts and will leave no stone unturned in helping the state’s requirements in the coming months.
Personally the State can consider me as an Ambassador for Andhra in Delhi and any of you can please feel free to meet me any time for my humble assistance. I wish the people and Government of Andhra all the best in its task.
JAI HIND
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