Thursday, October 7, 2010

Speech


Speech

SPEECH OF HON’BLE MINISTER OF STATE FOR AGRICULTURE, CONSUMER AFFAIRS, FOOD & PUBLIC DISTRIBUTION, GOVT. OF INDIA TO BE DELIVERED DURING COMMONWEALTH BUSINESS FORUM 2010 ON 5TH OCTOBER, 2010 AT TAJ PALACE HOTEL, NEW DELHI.


I welcome all participants of Commonwealth Business Forum 2010.


It gives me great pleasure to address you on this momentous occasion. The Commonwealth Games, the third largest multi-sport event in the world, have taken off to a glorious start, the athletes are busy with their events, and spectators are flocking to the venues in big numbers. I felicitate all of you on your participation in the Games and wish your sports teams all the best for the coming days.



Sports and business have now become inseparable. The symbiotic relationship between sports and business is witnessed in the large gathering present here today. The opportunities for business during sports events are very large. In Delhi itself, the estimates for the city infrastructure, sports venues and other necessities stand at close to $10 billion. It is estimated that the Games will have an economic outcome of close to $5 billion over the next few years and succeed in adding 2.5 million new jobs. In fact, we will be gaining from this event for the next many years.

Most important, the Games will bring a new sense of confidence and a new brand image for India as a global player. Despite some glitches, overall the facilities are world-class and have brought new standards to Indian infrastructure, Indian sports and Indian services. India has leapfrogged the transition from low levels of quality to global benchmarks and this Game is a sure indication of this.

Our close friends in the Commonwealth grouping are particularly well placed to reap the benefits of India’s emergence on the global economic stage. From our shared histories and experiences, we enjoy mutual friendship and respect. The institutional frameworks of Commonwealth countries such as democracy, rule of law, media freedom, administrative and bureaucratic procedures and education systems are similar, leading to greater understanding and ease of communication.

In fact, the commonwealth members have lent special significance to maintaining the institutions left behind by the British which are now serving us well. In particular, the emergence of English as the language of the world owes much to its usage by the Commonwealth’s countries over the years. This common means of communication is a major tool for our cooperation and partnership and is the very foundation of our grouping.

With these advantages, the organization of the Games in India draws attention to the business partnerships that can be strengthened and deepened among Commonwealth countries during its course. I am grateful to the Commonwealth Business Forum for giving me this opportunity to address you and I felicitate the Organizing Committee and the Confederation of Indian Industry for organizing this event.

Let me outline some of the excellent opportunities that the Indian economy offers to our friends in the Commonwealth.



The Indian economy is expected to grow by over 8.5% this year. A recent Economist cover story says that India will overtake China in growth over the next three-four years to become the fastest-growing major economy. The Indian economy recovered easily from the global economic crisis which dented our progress for two years. Yet the pace of growth remained at over 6.5% for each of the two years. This was due to prudent reforms, calibrated policies of liberalization and rapid action in terms of stimulus and other measures.

The Government took unprecedented action of pumping purchasing power into the hands of the poor where it has the greatest multiplier effect. This kickstarted a fresh round of spending and boosted the manufacturing sector. Even while India experienced the worst drought in 30 years and agriculture production stagnated, the manufacturing and services sector emerged to take up the slack and become the growth drivers of the economy.

This year, the Indian economy will gain considerably from the performance of the monsoon. Although the heavy rains disrupted final preparations for the CWG last month, they were good news for the planting season. We expect agriculture growth to be robust this year, and this will power GDP for the year.

While much of agriculture is regulated to protect the marginal farmer, there have been excellent examples of businesses doing well in the sector. Companies have invested in the supply chain, in contract farming, in agricultural implements and machinery, and in financial services for farmers. Many more openings are available in the downstream sectors of food processing, packaging, refrigeration, etc.

The business opportunities derived from agriculture in India are enormous and not sufficiently exploited by overseas businesses. India has 14 agri zones and is capable of producing a wide variety of grains, fruits and vegetables. The rising share of horticultural products as compared to grains in the basket of agricultural produce attests to the changing lifestyles of Indian consumers.


However, India faces a large technology deficit in terms of agriculture productivity. Our yields are far lower per unit of area than that of other countries. This has implications for companies in technology, agricultural implements and machinery, agri inputs such as fertilizers, biotechnology and other areas. The absorption capacity of the Indian farming sector for such technology and advanced equipment is high. Just as the Commonwealth Games are an example of India leapfrogging technology usage, Indian agriculture too can jump into more technology-intensive methods of farming within a short time.

In fact, the compulsions of food security for a rising population with increasing spending power imply that such technology jumps are not just required but are imperative for the future development of the country.

The good agriculture growth also translates into increased discretionary spending by farmers and ancillary sectors of the rural economy. In fact, rural demand has become the prime mover of domestic demand in India. While other countries are struggling to sustain their levels of domestic demand given the high rates of unemployment, India is gaining from robust and healthy expenditures.
The manufacturing and services sectors are likely to derive high advantage from this growth. Already we are witnessing sectors such as automotives, consumer durables and related sectors benefiting from the dynamic and thriving rural markets. Companies both domestic and multinational are reconfiguring their marketing strategies to address rural markets. Value and marketing chains that reach down to the farthest villages are proving to be the most profitable.

India’s infrastructure mission will be a major source of growth. In the five years from 2007 to 2012, the country would have significantly stepped up its infrastructure spending to $550 billion. In the next five years, it is estimated that India will be spending $1 trillion in the sector.

We have seen the power of the infrastructure sector in areas such as roads and highways and telecommunications, which have revitalized the economy. Current deficits in the infrastructure sector are being addressed through dedicated policies in the realm of regulation, financing, and administration. Public private partnership is a major plank of our infrastructure engagement and much investment is expected to come from overseas sources.

In services, India’s export growth has been spectacular. Today, the country is the largest exporter of software services and a major player in business and professional services. Service exports have crossed $100 billion and continue to gain pace, despite the economic conditions. As the world shifts increasingly to a knowledge economy, India will emerge as a key participant, given its strong educational output.

I would like to reiterate that India faces considerable challenges in its growth aspirations. Poverty remains high, and human development indicators are poor. We need to move rapidly on spreading growth to all sections of society. Health and education need to be stressed. Global economic conditions will also be a major factor in our growth, and it is important that global sources of India’s growth are not constrained by protectionist forces. However, I must reiterate that the Indian government is addressing the challenges comprehensively and I have no doubt that challenges can be converted into opportunities.

In our march towards development, we look to our Commonwealth friends for support and partnership. Your collaboration in this existing venture is invaluable to our development aspirations.

Ladies and gentlemen, a new India is on the ascendance. Just as the world’s largest helium balloon took to the Indian skies day before yesterday, we will see transformational changes in the Indian economy. A growth rate of over 10 percent could well be sustained in the next few decades, turning the country into a powerhouse for the global economy. This is the time to be in India, this is the time to invest in India, and this is the time to partner India’s development saga.

Thank you.

Speeches

ADDRESS OF PROF. K. V. THOMAS, MINISTER OF STATE FOR AGRICULTURE, CONSUMER AFFAIRS AND FOOD AND PUBLIC DISTRIBUTION, GOVERNMENT OF INDIA AT THE OPENING CEREMONY OF THE ANRPC ANNUAL RUBBER CONFERENCE 2010,
6 OCTOBER, KOCHI, INDIA


Mr. Le Quang Thung, Acting Chairman, Vietnam Rubber Group & Chairman of ANRPC,

Prof. Djoko S. Damardjati, Secretary-General, ANRPC

Mr Sajen Peter IAS, Chairman, Rubber Board,

Member Government Representatives of ANRPC countries,

Members of Rubber Board,

Distinguished Delegates and

Ladies & Gentlemen,

As the proud representative of Kochi in Parliament, I am happy to see the city playing host to yet another international conference. Kochi has been a bustling centre of commercial activities for centuries, with more than 2000 years old trade links with world markets. The city is one of the finest natural harbours and is located scenically between the Arabian Sea and backwaters. Muziris in the neighbourhood of Kochi, a famous and prosperous seaport in ancient times, was the centre of world spices trade for centuries.
Like other natural rubber producing countries, cultivation of rubber began in India also only a century ago. India is a vast country and the area under major plantation crops accounts only for one per cent of the gross cropped area. However, the share of contribution of the plantation sector to national agricultural GDP is almost two per cent, reflecting the relatively high extent of value of output. Among the plantation crops, rubber accounts for 38 per cent of the planted area. However, India has only a narrow belt of regions suitable for rubber cultivation and the agroclimatic conditions even in these regions are sub-optimal. However, the sector has achieved substantial progress over the decades in production and productivity. From 2006 India has been recording the highest productivity in rubber in the world. This has been made possible by decades of concerted efforts at research and extension fronts and with the benefit of having a highly receptive and enterprising farming community.
Natural rubber has emerged as an important industrial raw material in terms of its essentiality in critical products, versatility in commercial use and potential for value addition. Though the main use of rubber is in the tyre sector, it is being used in manufacturing around 50,000 products most of which are indispensable in modern life, ranging from erasers to aircraft tyres. Currently, NR accounts for 44 per cent of elastomer consumption in the world. NR is also an eco-friendly product and rubber plantations have a green image. Processed timber obtained from rubber plantations while replanting substantially contributes to the conservation of tropical forests.
The share of Asia in world NR production remained above 90 per cent ever since the dominance of plantation rubber though the relative shares of Asian countries in world NR production have changed considerably during the recent decades. The relative share of Asia in consumption of rubber increased steeply from 19 per cent in 1960 to 75 per cent in 2009 at the cost of North America and Western Europe. This has been on account of spectacular growth in consumption in China and India. The share of China in world NR consumption was as high as 37 per cent in 2009. Of late, China has ousted the US and emerged as the world’s largest vehicle market with sales touching 13.5 million units. Consumption of NR in other rubber producing countries like Malaysia, Thailand, Indonesia and Vietnam also has improved in the recent decades.
I understand that the eleven member countries of the ANRPC together account for 92 per cent of the world production of NR. In the present globalised world, competition is the watchword of all economic activities. Yet, the overwhelming role of competition has not undermined the importance of cooperation among countries in commodity sectors. During the last four decades, the ANRPC has contributed substantially to the development of NR industry in the member countries. There has been commendable progress in research and extension activities in NR sector, resulting in significant improvements in productivity and acceleration in NR production leading to improvement in the living standards of rubber growers. Our achievements in the NR sector owe to a great extent to the foresight and dedicated efforts of our predecessors among policy makers, scientists, extension workers and growers.
The Annual Rubber Conference of ANRPC provides a unique opportunity for all rubber industry stakeholders around the world to come together to listen to industry experts and officials from ANRPC member countries. I am happy to note the universal relevance of the theme of today’s Conference. Planning starts with an awareness of where we stand. Information on the current status of rubber industry is thus an essential prerequisite for exploring where we want to go and also understanding the constraints on the road ahead. A progressive planner takes every constraint as a challenge. It is the strategy adopted that transforms a challenge into an opportunity. Deliberations on challenges, opportunities and strategies for development of NR industry in the next decade shall contribute to devise appropriate strategies.
Most of the plantations in South and Southeast Asian countries were developed extensively during the first half of the last century, mainly in the estate sector. During the second half of the last century the share of small growers in the plantations increased on account of the operational divisibility of some crops, changes in the political context and proactive interventions of developmental agencies. Currently, NR is predominantly a smallholder’s crop in all the major producing countries. The challenges being faced by small growers are distinct irrespective of the crop. It is important that the strategies for development of rubber industry are small grower friendly. The research and extension components of the strategies shall be mainly oriented towards the issues in the smallholding sector.
Another important challenge confronting the NR sector is the growing shortage of labour. This has to be addressed by exploring possibilities of developing labour saving cultural and harvesting practices and mechanisation.
There is a growing concern on climate change and its impact on crop production. Global warming, weather instability and occurrence of unusual and extreme weather events are the major physical dimensions of climate change. Research in rubber plantation sector shall focus on the impact of climate change on rubber cultivation and strategies to mitigate the possible adverse impact.
I would like to re-emphasise the eco-friendliness of NR. People all over the world are becoming more and more aware of environmental issues, and this gets reflected in increasing demand for environment-friendly products even at premium prices. The plans for the next decade should therefore cover strategies to capitalise on the environment-friendliness of NR too. There shall be collective efforts among the NR producing countries to take advantage of Clean Development Mechanism under the Kyoto Protocol to UNFCCC.
Equally important is value addition for rubber in the producing countries themselves. I understand that the share of Asia and major producing countries in NR consumption has increased over time, especially since mid-1980s. There shall be earnest efforts to enhance NR consumption in producing countries in the coming years.
The success of a Conference is determined mainly by the content of the presentations and the extent of participation. From the brochure, it is obvious that it is a tightly scheduled programme covering all ANRPC member countries and presentations on special topics by invited speakers. And I am pleased to observe the wide and diverse participation of rubber industry stakeholders from different parts of the world. Wishing the deliberations in the Conference every success, I declare the ‘ANRPC Annual Conference 2010’ open.
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Vatican embassy visit 4/10/10


Friday, October 1, 2010

Mumbai function

Inaugural address as Chief Guest on Solvent Extractors’ Association of India (SEA) Award Function to the Highest Processors and Exporters to be held on 24th September, 2010 at Hotel The Leela Kempinski, Sahar, Mumbai

It is my pleasure to attend SEA Awards Function organized by the Solvent Extractors’ Association of India (SEA) here in Mumbai today.

2. Solvent Extractors’ Association of India (SEA) is a premier organization of the oilseeds sector and solvent Industry. SEA is also engaged in the processing of oilseeds, oilcakes, rice bran and recovery of oils from oil bearing materials besides being active in promotion of vegetable oils trade, export of oil meals, compound of feeds for animals, poultry & aquatic species.

3. I am informed that SEA has a strength of over 800 members from solvent industry, oil mills, vegetable oil refiners, vanaspati manufacturers, exporters, foreign buyers, dealers and various other stakeholders of oilseeds and oil sectors. The Solvent Industry contributes significantly in processing of oilseeds, oilcakes, rice bran etc and promoting export of oil meals of over 4 million tones annually. The export of oil meals balances the burden of import cost of edible oils to a large extent.

4. To encourage the processing of oilseeds as well as export, the Association present awards to highest processors and exporters of various commodities every year. The awards conferred by SEA this year to the highest achievers will definitely inspire and motivate in the promotion of oilseeds in the country. It will also provide added zest to work towards our goal to increase the production of oilseeds and to reduce dependence on imported oils and also boost the export of oil meals.

5. As we know, India is one of the major producers and consumers of vegetable oils in the world. India accounts for 12-15% of the area under oilseeds; 7-8% output and 6-7% of the world’s vegetable oil production. The diverse agro ecological conditions in the country are favourable for growing nine annual oilseeds which include 7 edible oilseeds viz. groundnut, rapeseed/ mustard, soybean, sunflower, sesame, safflower and niger and two non-edible oil seeds, castor and linseed.

6. The average of last five years oilseeds production in India has been to the tune of 27.0 million tones. In 2007-08, the production of oilseeds was achieved at a record of 29.75 million tones. At present, the domestic oilseeds output in terms of vegetable production has been trailing consumption growth, necessitating imports of edible oils to meet the shortfall.

7. Realizing the importance of oilseeds, the Government of India has launched various schemes which provides assistance to the development of oilseeds in the country. Centrally Sponsored Integrated Scheme of Oilseeds, Pulses, Oil Palm and Maize (ISOPOM, under implementation since 2004-05, is a major programme which covers 14 major oilseeds growing States. During the XIth Plan Period, the Government has given thrust to oilseeds development. Oilseeds production programmes are supported under two major schemes namely Macro-Management of Agriculture (MMA) and Rashtriya Krishi Vikas Yojana (RKVY) as well. During 2010-11, Government has launched two new sub-schemes under RKVY Viz; (i) organizing sixty thousand pulses and oilseeds villages during 2010-11 in rainfed areas and oilseeds production strategy in six Eastern States of the country under the specific scheme of “Bringing Green Revolution in Eastern India” for the year 2010-11. I hope these programme will help in increasing the production and productivity of oilseeds in the country.

8. I congratulate the winners of the Awards. I compliment SEA for organizing the function.

Animal Husbandary


Animal Husbandary