With an aim to slash the soaring fertiliser subsidy bill, the Government on Thursday approved a plan to link the roll out of fertiliser subsidy to manufacturers with the acknowledgement of receipts from vendors.
Experts welcomed the move saying it would help stop the prohibited sale of subsidised fertilisers at market-linked prices.
Government of Punjab on Monday, October 1, started procurement of paddy in a total of 1,770 notified mandis spread across the state.
Monsoon rains fell just short of the drought level, but farmers in Punjab will achieve a record paddy harvest of more than 135 lakh metric tones - the highest figure so far in the state's history.
Minimum support price for paddy has been increased from Rs 1,080 per quintal lin 2011 to Rs 1,250 per quintal this year. Minimum support price for grade 'A' paddy has been announced at Rs 1,280 per quintal, up from Rs 1,110 per quintal last year.
India’s union agriculture minister Sharad Pawar has said that the country’s total food grain production for this kharif season or summer crops is expected to fall 10 per cent mainly due to low monsoons and drought like situations in some of the states in the country.
The panel of ministers deliberating on the controversial pharma pricing policy has reportedly reached a broad consensus.
Quoting unnamed people familiar with the developments, CNBC reported that Agriculture Minister Sharad Pawar-led Group of Ministers (GoM) agreed to limit price control just to the National List of Essential Medicines.
India may suffer a fall in overall agriculture production this year as there are still some areas that are severely affected by erratic rains, Agriculture Minister Sharad Pawar has said.
Addressing the dignitaries at the National Conclave on Micro-irrigation in New Delhi on Wednesday, Mr. Pawar said that nearly 33 per cent of the country got deficient rains, which left many states like Rajasthan, Maharashtra, Karnataka and Gujarat in a crisis.
The Australian Bureau of Agricultural and Resource Economics and Science (ABARES) has said that it expects the wheat production in Australia to fall 24 per cent this year.
The government's commodity forecasting authority believes that the total production of wheat will fall to 22.5 million tonnes in 2012/13, compared to a highest ever record in the previous year. The agency pointed out that the wheat available for export will remain high this year due to record production in the previous two seasons.
Karnataka State Cabinet took a number of important decisions regarding power, housing, farming etc. in its meeting on Thursday.
After the meeting, Primary & Secondary Education Minister Vishweshwara Hegde Kageri told reporters that the Cabinet approved Udupi Power Corporation Ltd’s proposal to purchase 1.5 million tonnes of imported coal. The company was also allowed to commission its second 600MW unit at Udupi.
Tractors and Farm Equipment Ltd (TAFE), which is the third largest manufacturer of tractors in the world, has recorded a growth of 9.3 per cent growth in the first quarter of the financial year till June 2012. The sales of the company were 36,669 units compared to to 33,551 units a year earlier.
The Indian government has announced a new scheme to offer 50 per cent subsidy on diesel to farmers, who are affected by less than normal rainfall this monsoon.
Farm Secretary Ashish Bahuguna has said on Friday that the monsoon rains remained be 21-22 percent below average from June 1 till the whole planting month of July.
Experts say that the rains are not likely to increase drastically to prevent a drought like situation. It is a possibility that the ministers meeting next week over the situation might declare a drought and it will propel the government to offer additional supported to the those affected, mostly in the agriculture sector.
According to Agriculture Minister, Sharad Pawar, the country is not facing a drought situation yet but expressed concern over the ability to maintain a record production level due to a low monsoon this year.
"We have not reached the drought situation yet. This year monsoon is playing hide and seek. It is a challenge for our farmers to maintain the same performance as compared to last two years," he said.
India's union Agriculture minister Sharad Pawar has said that there is no shortage of food grains in the country as the governemtn has maintained "ample" stock of over 82 million tonnes of rice and wheat.
"There is ample stock of foodgrains with the government. Availability of food-grains is comfortable. There is no dearth of foodgrains in the country," Pawar said.
The largest lender in the country, the State Bank of India (SBI) has announced a reduction in its lending rates by between 0.5 percentage point and 3.5 percentage points for small and medium enterprises (SMEs) and the agriculture sector.
.Krishna Kumar, Managing Director and Group Executive for National Banking, SBI said that the bank has reduced the overall interest rates by 50 to 350 basis points. He also said that the bank's rate could remain at 10 per cent.
The central government has delayed plans to increase the retail prices of urea by 10 per cent in the country during the 2012-13 fiscal year.
A proposal from the Fertiliser had suggested increasing the price of urea by 10 per cent to Rs 5,841 per tone for the fiscal year. Some officials close to the matter said that the Cabinet Committee of Economic Affairs (CCEA) has delayed its decision to implement the planed hike in price of urea.
India's 2012 monsoon rains are likely to hit the southern coas t on time hardly 1-days left, the weather department said, brightening farm output prospects as farmers can plan t crops such as cotton and paddy on time and reap good yields. More than half of the country's workforce is employed on farms. Rural spending - on goods ranging from te levision sets to gold jewelry -- increases when monsoon rainfall is normal, making the rainy season an important part of the broader economy. The four-month long rainy season starts over the Kerala coast and covers the re st of India by mid-July.
India's largest cigarette maker, ITC has reported a 26 per cent rise in profits during the fourth quarter till March 2012 mainly due to higher prices and strong performance of its food and agricultural business.
The company's net profit increased 16.14 billion rupees in the fourth quarter of the fiscal year till March 2012. It had reported a net profit of 12.8 billion rupees a year earlier. Market analysts were expecting the company to report a net profit of 15.7 billion rupees, according to Thomson Reuters I/B/E/S.
Brokerage House CLSA has given a buy call for Jain Irrigation. The company is into agriculture sector and offers irrigation solutions. There is an increase in demand for cost saving irrigation systems and Jain Irrigation is a pioneer in the sector in Indian market.
Brokerage house CLSA has given a target price of Rs 150 for Jain Irrigation. The analysts have expressed positive views about the reduction of debt for the company. With earnings upgrade, the current market price for the stock looks undervalued.
An Empowered Group of Ministers (EGoM) will hold a meeting under the chairmanship of Finance Minister Pranab Mukherjee to review the country’s natural gas allocation policy.
The meeting is to review the allocation after a severe fall in output form Reliance Industries’ KG-D6 block. The government says that the company is to blame for the fall in production but Relaince says that geological complexities caused the fall in production.
India’s Prime Minister Manmohan Singh has said that the agricultural sector is likely to grow at about 3.5 per cent per annum during the eleventh five-year plan and added that the growth must be scaled up to 4 per cent.
Dr. Singh also said that is aiming to double the spending on research and development in the agriculture sector by the end of the 12th Five Year Plan from one per cent of gross domestic produce (GDP) in the country.
According to a new study, the floriculture industry in India is likely to cross the mark of Rs 8,000-crore mark by 2015 after recording strong growth in the recent years.
The industry has recorded an annual growth rate (CAGR) of about 30 per cent and is estimated to be worth about Rs 3,700 crore. However, the industry only has a 0.61 per cent share in the global floriculture industry.