The wheat production this year will be an all time high production and will beat all previous records, according to Minister of State for Agriculture and Food Processing Industries, Mr Tariq Anwar at an ASSOCHAM event held in New Delhi
India is likely to achieve record wheat production on back of good monsoon, Minister of State for Agriculture and Food Processing Industries, Mr Tariq Anwar said at an ASSOCHAM event held in New Delhi today.
“We have been receiving encouraging reports as the weather has been very good and the monsoon has supported us and I think this time we would achieve an-all time high production that would beat all previous records,” said Mr Anwar while inaugurating 6th Agri Business Summit: Infrastructure, Value Chain and Partnership' organised by The Associated Chambers of Commerce and Industry of India (ASSOCHAM).
On reports of stem rust in a wheat field in Haryana, the minister informed that government has already warned the farmers and it is taking an initiative in this behalf.
“Gross inefficiencies in the food supply chain had lead to an extraordinary rise in onion prices and there was no issue related to its production which has remained steady at about 17-18 million tonnes,” said a disappointed Mr Anwar.
“There is something seriously wrong in the way the onion market operates as it is due to inefficiencies in procurement and distribution system that such extreme price distortion takes place,” he added. “There are governance issues related to licensing of wholesalers, issues related to holding capacity of farmers, issues related to market price information and a number of such issues related to the whole supply chain which creates this kind of pricing contradiction.”
“There is a need to develop an incentive system to encourage both producers and distributors or sellers to adopt new technology to maximise production as we have not been able to use even the existing technologies available to us,” said Mr Anwar.
The minister also said that presently, farmers are discouraged to produce more as most of the surplus generated from farm produce is cornered by middlemen. He also stressed upon the role of contract farming to increase farm productivity and thereby increase agriculture income in the future.
He also sought serious industry intervention while emphasising on the importance of contract farming. Most states today would not debar any company from procuring directly from the farmers provided certain procedural issues are followed, said Mr Anwar, while conceding that there are certain issues related to Agricultural Produce Market Committee (APMC) Act in various states.
Some Key highlights of the Report that was released in the Summit include:
1. The share of public sector capital formation in agriculture & allied sectors has come down from 25% in 2006- 07 to about 15% in 2011-12 where as that of private sector has gone up from 75% to 85%. Greater public sector investment in agri infrastructure is needed to facilitate further private investment.
2. The level of farm mechanization is high for wheat/rice harvesting at 60-70% and less than 5% for other crops. The level of farm mechanisation for other farming activities like soil work and seed bed preparation, seeding and planting, plant protection and irrigation is still at meagre 30%-40%.
3. The storage shortfall stood at about 330 lakh metric tonnes (MT) in 2011-12, due to record procurements by the government, which has made creation of covered warehouses an urgent necessity.
4. India’s food processing levels are at just 2% of its overall annual production, which is abysmal compared to China (23%), Malaysia (83%) and USA (65%). Hence plenty of scope remains for increasing food processing activities, which in turn adds value to the end product.
5. Viability gap funding (VGF) needs to be encouraged to upgrade agri-marketing infrastructure. This can be coupled with private wholesale markets and terminal market complexes through innovative public-private partnership (PPP) models.
As long as the Nifty manages to keep itself above 6,250 on Tuesday, the upmove may continue. However, it would be a short rally that may stall soon
We speculated on Friday that the indices may be getting ready to put in a short rally. The BSE 30-share Sensex on Monday opened with the highest gap up since 19 December 2013 at 20,851 while the Nifty opened with the maximum gap up since 1 January 2014 at 6,190. The indices moved up quickly and then stayed in a range bound session all through and made a huge upsurge at the end, when the benchmarks hit their respective highs for the day and closed almost at the same level. The Sensex hit a high of 21,169 and closed at 21,134 (up 376 points or 1.81%). The Nifty hit a high of 6,288 and closed at 6,273 (up 101 points or 1.64%). The percentage gain on the Sensex has been the highest since 25 November 2013, while that of the Nifty is the highest since 20 December 2013. But the gain on the Nifty has been on a lower volume of 54.56 crore shares on the NSE.
Among the other indices on the NSE, the top five gainers were IT (2.84%); Service (2.13%); Finance (2.06%); Bank Nifty (2%) and Energy (1.87%) while the top five losers were Pharma (0.66%); MNC (0.44%); Midcap (0.18%); Nifty Junior (0.10%) and Metal (0.04%).
Of the 50 stocks on the Nifty, 37 ended in the green. The top five gainers were TCS (4.34%); HCL Technologies (3.99%); ICICI Bank (3.49%); Kotak Bank (3.35%) and DLF (3.26%). The top five losers were Ranbaxy (5.58%); Lupin (1.71%); Tata Power (1.56%); Sun Pharma (1.17%) and Jindal Steel (0.71%).
Of the 1,511 stocks on the NSE, 692 closed in the green, 741 closed in the red and 78 closed flat.
On Friday, against market expectations, the index of industrial production (IIP) fell for second consecutive month after 1.6% dip in October 2013. The sharp decline in the output of manufacturing sector by 3.5% mainly led to fall in IIP in November 2013. Meanwhile, the marginal 1% growth in mining sector output and healthy 6.3% growth in the electricity generation restricted further dip in industrial production during November 2013. The government will unveil consumer price index (CPI) of urban and rural India after trading hours today.
The government is maintaining fiscal discipline before the general elections, which is supporting the country's credit ratings, a Fitch Ratings analyst said on Monday. Fitch has rated India "BBB-minus" with a "stable" outlook.
US indices closed mostly in the green. A government report showed that US employment rose at the slowest pace in three years in December. The 74,000 gain in payrolls was the weakest since January 2011, Labor Department figures showed in Washington.
Global regulators strived to raise confidence levels of financial markets, especially the banking sector, after it approved of a measure to change leverage ratio. Changes to the leverage rule give lenders more scope to use an accounting practice known as netting to calculate the ratio, and ease proposals on how lenders determine the size of their off-balance sheet activities.
Except for Shanghai Composite (down 0.19%) and Straits Times (down 0.27%) all the other trading Asian indices closed in the green. Jakarta Composite was the top gainer which rose 3.19%.
European indices were trading flat mostly in the positive while US Futures were trading in the negative.
As per the draft regulations issued by SEBI, it had been proposed that only 'Category-III,' or high-risk foreign investors, would be barred from issuing P-Notes
Tightening norms for issue of participatory notes (P-Notes) by overseas investors, market regulator Securities and Exchange Board of India (SEBI) has barred unregulated foreign funds from dealing in offshore derivative instruments even if their investment managers are appropriately regulated by their concerned regulators.
The guidelines, which are part of the newly notified foreign portfolio investor (FPI) regulations, have come into force with immediate effect. They provide for stricter oversight of P-notes, the preferred route for overseas high net worth individuals (HNIs) and hedge funds for investing in the Indian market.
Earlier, according to the draft regulations by the SEBI, it had been proposed that only 'Category-III,' or high-risk foreign investors, would be barred from issuing P-Notes.
However, the gazette notification that brought the FPI guidelines into force also prohibits certain entities under 'Category-II,' or medium-risk investors, from issuing P-Notes.
"Provided that those unregulated broad-based funds, which are classified as Category-II foreign portfolio investor by virtue of their investment manager being appropriately regulated, shall not issue, subscribe or otherwise deal in offshore derivatives instruments directly or indirectly," Sebi has said in its final FPI regulations.
P-Notes, or offshore derivative instruments, are mostly used by overseas HNIs, hedge funds and other foreign institutions to invest in Indian markets through registered foreign institutional investors (FIIs), while saving on time and costs associated with direct registrations.
The new FPI regime has classified foreign investors into three groups based on their risk profile and would eventually replace existing categories such as FIIs, their sub-accounts and qualified foreign investors.
Category-I FPIs, entities with the lowest risk, would include foreign governments and government-related foreign investors.
Category-II FPIs would include appropriately regulated broad-based funds, university funds, university-related endowments and pension funds, among others.
Category-III FPIs would include all others not eligible under the first two categories.