AGRICULTURE AGRICULTURE AGRICULTURE W RLDW RLDAGRI ECONOMYFINANCE AND INSURANCE

Echoing Sustainable Environment and Agriculturewww.krishijagran.com

Volume I Issue 5 May-2015 `70 | | |

AGRICULTURE WORLDAGRICULTURE WORLD

Editorial

Recent NSSO survey shows that 52% of the 90.2 million agricultural households are in indebtedness which is as high as 93% in Andhra Pradesh and 89% in Telangana.

The survey also revealed, that majority of the farm households were ignorant of crop insurance schemes. During the Kharif 2012 and Rabi 2013 a li�le more than 95% of the paddy and wheat growers and 99% of the sugarcane growers did not go for crop insurance. Under this situa�on the ar�cle by Dr. Suresh Pal, Head, Agri‐ Economics, IARI, New Delhi highlights the need for infrastructure development like transport and rural electrifica�on to improve agricultural produc�vity and income.

S.S. Saxena, Deputy General Manager of Agriculture Insurance Company of India Limited, New Delhi, in his ar�cle on Crop Insurance‐ The Protec�on and Availability: A Farmer's Choice provides an overall view of the various insurance schemes like NCIP, MNAIS, WBCIS, CPIS from rabi 2013‐14. Further he highlights AIC's contribu�on in ini�a�ng various insurances like rainfall and weather insurances, crop insurances for Mango, grape, coffee, coconut, rubber, potato, pulpwood etc., besides double trigger crop insurance and Farmer's Loyalty Bonus Program.

Locusts are swarming insects moving like and army devouring every vegeta�on on its way and has been for centuries from ancient �mes onwards a serious pest to the all the crops in many countries in the world. In many countries they have been consumed by people in the Asian‐African countries as good source of protein as it contains 75% in dry weight. The repor�ng ar�cle “Transforma�on of Locust into Fodder” by Darya Kezina highligh�ng the possibility of conver�ng large quan��es of pes�lent locusts into high protein animal fodder is a rare innova�ve idea animal feed industry which will have global market. Such innova�ve ideas and prac�ces are most welcome.

Manoj Rawat, Head, Agribusiness Group, RBL Bank, highlights the involvement of RBL with 14 lakh customers through 183 branches addressing two key areas of concern such as Financial Inclusion and Food Security. Further he highlights the emerging opportuni�es for banks in Rural India to involve in Rural Agri‐Business, Rural Housing, Renewable Energy and Services. The Bank's five pronged approach to increase its relevance in rural India is worth no�ng. RBL's models like Retail Agribusiness, wholesale Agribusiness & Value Chain Finance, Commodity Finance and Pledge Finance are praise worthy.

Poverty is a prowling beast going around devouring silently majority of the popula�on in our glorious Hindustan. Poli�cians and armchair academicians with their bellies bulging to suffoca�on make a mockery of themselves in defining poverty in various terms from calories to purchasing power parity every �me in consonants with interna�onal commercial interest and finally to rupees per head per day 26 for rural people and 32 for urban people brushing aside the ICMR recommenda�ons and even erasing them from all domains of knowledge including the internet. Basing on the balanced diet recommended by the then (1970's) nonpar�san ICMR, Dr. Chandy proposes a simple method of es�ma�ng the minimum level of net income for an individual or a family to have a decent human life. His ar�cle on “Household Economy of a Farmer in India” will make anyone who reads it to realize that the Rs 26 & 32 recommenda�on is not enough even for a cow or bullock to feed a day.

The biggest enemy to progress of humanity is false rumours spread against scien�fic facts as it has been happening at the �me of Galileo and Louis Pasteur. It takes hell of a lot �me to remove such rumours. Mr. K. Vijayaraghavan, chairman, Sathguru and Regional Coordinator, in his ar�cle “Breaking the myths surrounding the An�‐GMO Propaganda” is an a�empt to iron out problems arising from the unfounded rumours being spread against the GMO's as India can be a fer�le land for spreading baseless and unscien�fic rumours since vast majority of the people are prone to believe more in myths and folklore like stories. His indeed is a 'myth exploding' ar�cle.

The ar�cle on “Halal Exports may help Russia's Agrarian Sector to Grow” by Viktoria Semioshina reminds all the people in agrarian the importance of cer�fica�on in agri‐business ci�ng the example of Russia in halal market. The details of the procedural aspects of obtaining a cer�fica�on and expansion of the market to the interna�onal arena presented by the author is an incen�ve to people who want to enter into agri‐business.

M C DominicEditor‐in‐Chief

editor@krishijagran.com

Year Rs. US$

1 700 100

2 1300 200

3 1800 300

SUBSCRIPTION

Printed and Published by : M.C. DominicAgriculture World, 60/9, 3rd Floor, Yusuf Sarai MarketNear Green Park Metro Station, New Delhi‐110016Tel: 011‐26511845, 26517923, Mob: 9313301029, 9654193353Email: info@krishijagran.com, krishijagran@gmail.comWeb: www.krishijagran.com, www.kjcommoditynews.com

Printed at : New Pushpak Press Pvt. Ltd. 203, 204 DSIDC ComplexOkhla Industrial Area, Phase ‐1, New Delhi ‐ 110020

IN THIS ISSUE

Editor M.C. DominicDirector Shiny Emanuel M.G. VasanSr. Executive‐Editor Dr. K.T. Chandy R.K. Teotia Chander MohanExecutive Editor G.S. SainiHead Editorial Sanjay KumarAssociate Editor Kumud Shukla Neha SachdevaSenior Correspondent Ruby JainCorrespondent Aniket Shina Kanika Chauhan Kiran KumariAdmin Head ChetramHead‐Marketing P.S. Saini DGM‐Marketing Farha KhanSr. Manager‐Marketing K.J. Saranya Hrituparna BanerjeeManager‐Marketing Sara KhanAsst. Manager‐Marketing Sarla Singh Sarita Singh Jyoti Sharma Megha SharmaSr. Executive‐Marketing Afsana Malik Sujata Gautam Chunki Bhutia Poonam BishwakarmaHead‐Circulation Nishant Kr. TaakSr. Executive‐Circulation Chander Dev Bhatt Rahul Singh Abdus Samad Sukumar Dalai Ritika Goel Pooja Bisht Aruna JanaHead Pre‐Press Dharmendra KumarDesigning Yogesh KumarOffice Assistant Devendra Singh Prem Kumar Ranjan

D.D. NAIRVP International Business (Russia & CIS Countries) 6 Mikluho‐Maklaya STR, Moscow, Russia 117198Mob: +7903729 98 30, Off.: +7499501 99 10 Email: ddnair@krishijagran.com

M. MezhukanalMiddle East

E‐16F‐33, Hamriyah Free Zone, Sharjha, UAE Ph.: +971502870465, Email: mezhukanal@krishijagran.com

Enhancing Agricultural Growth and Rural Income ..........................4

Crop Insurance—The Protec�on & Availability: A farmer's Choice............................................................................6

Transforma�on@ locusts into fodder..............................................9

RBL Bank aims to be big in Rural & Agriculture Banking Sector............................................................10

House Hold Economy of a Farmer in India....................................13

Breaking the myths surrounding the an� GMO Propaganda........19

Halal Exports May Help Russia's Agrarian Sector To Grow............22

Agriculture News...........................................................................25

AGRICULTURE WORLDAGRICULTURE WORLD

Editorial

Recent NSSO survey shows that 52% of the 90.2 million agricultural households are in indebtedness which is as high as 93% in Andhra Pradesh and 89% in Telangana.

The survey also revealed, that majority of the farm households were ignorant of crop insurance schemes. During the Kharif 2012 and Rabi 2013 a li�le more than 95% of the paddy and wheat growers and 99% of the sugarcane growers did not go for crop insurance. Under this situa�on the ar�cle by Dr. Suresh Pal, Head, Agri‐ Economics, IARI, New Delhi highlights the need for infrastructure development like transport and rural electrifica�on to improve agricultural produc�vity and income.

S.S. Saxena, Deputy General Manager of Agriculture Insurance Company of India Limited, New Delhi, in his ar�cle on Crop Insurance‐ The Protec�on and Availability: A Farmer's Choice provides an overall view of the various insurance schemes like NCIP, MNAIS, WBCIS, CPIS from rabi 2013‐14. Further he highlights AIC's contribu�on in ini�a�ng various insurances like rainfall and weather insurances, crop insurances for Mango, grape, coffee, coconut, rubber, potato, pulpwood etc., besides double trigger crop insurance and Farmer's Loyalty Bonus Program.

Locusts are swarming insects moving like and army devouring every vegeta�on on its way and has been for centuries from ancient �mes onwards a serious pest to the all the crops in many countries in the world. In many countries they have been consumed by people in the Asian‐African countries as good source of protein as it contains 75% in dry weight. The repor�ng ar�cle “Transforma�on of Locust into Fodder” by Darya Kezina highligh�ng the possibility of conver�ng large quan��es of pes�lent locusts into high protein animal fodder is a rare innova�ve idea animal feed industry which will have global market. Such innova�ve ideas and prac�ces are most welcome.

Manoj Rawat, Head, Agribusiness Group, RBL Bank, highlights the involvement of RBL with 14 lakh customers through 183 branches addressing two key areas of concern such as Financial Inclusion and Food Security. Further he highlights the emerging opportuni�es for banks in Rural India to involve in Rural Agri‐Business, Rural Housing, Renewable Energy and Services. The Bank's five pronged approach to increase its relevance in rural India is worth no�ng. RBL's models like Retail Agribusiness, wholesale Agribusiness & Value Chain Finance, Commodity Finance and Pledge Finance are praise worthy.

Poverty is a prowling beast going around devouring silently majority of the popula�on in our glorious Hindustan. Poli�cians and armchair academicians with their bellies bulging to suffoca�on make a mockery of themselves in defining poverty in various terms from calories to purchasing power parity every �me in consonants with interna�onal commercial interest and finally to rupees per head per day 26 for rural people and 32 for urban people brushing aside the ICMR recommenda�ons and even erasing them from all domains of knowledge including the internet. Basing on the balanced diet recommended by the then (1970's) nonpar�san ICMR, Dr. Chandy proposes a simple method of es�ma�ng the minimum level of net income for an individual or a family to have a decent human life. His ar�cle on “Household Economy of a Farmer in India” will make anyone who reads it to realize that the Rs 26 & 32 recommenda�on is not enough even for a cow or bullock to feed a day.

The biggest enemy to progress of humanity is false rumours spread against scien�fic facts as it has been happening at the �me of Galileo and Louis Pasteur. It takes hell of a lot �me to remove such rumours. Mr. K. Vijayaraghavan, chairman, Sathguru and Regional Coordinator, in his ar�cle “Breaking the myths surrounding the An�‐GMO Propaganda” is an a�empt to iron out problems arising from the unfounded rumours being spread against the GMO's as India can be a fer�le land for spreading baseless and unscien�fic rumours since vast majority of the people are prone to believe more in myths and folklore like stories. His indeed is a 'myth exploding' ar�cle.

The ar�cle on “Halal Exports may help Russia's Agrarian Sector to Grow” by Viktoria Semioshina reminds all the people in agrarian the importance of cer�fica�on in agri‐business ci�ng the example of Russia in halal market. The details of the procedural aspects of obtaining a cer�fica�on and expansion of the market to the interna�onal arena presented by the author is an incen�ve to people who want to enter into agri‐business.

M C DominicEditor‐in‐Chief

editor@krishijagran.com

Year Rs. US$

1 700 100

2 1300 200

3 1800 300

SUBSCRIPTION

Printed and Published by : M.C. DominicAgriculture World, 60/9, 3rd Floor, Yusuf Sarai MarketNear Green Park Metro Station, New Delhi‐110016Tel: 011‐26511845, 26517923, Mob: 9313301029, 9654193353Email: info@krishijagran.com, krishijagran@gmail.comWeb: www.krishijagran.com, www.kjcommoditynews.com

Printed at : New Pushpak Press Pvt. Ltd. 203, 204 DSIDC ComplexOkhla Industrial Area, Phase ‐1, New Delhi ‐ 110020

IN THIS ISSUE

Editor M.C. DominicDirector Shiny Emanuel M.G. VasanSr. Executive‐Editor Dr. K.T. Chandy R.K. Teotia Chander MohanExecutive Editor G.S. SainiHead Editorial Sanjay KumarAssociate Editor Kumud Shukla Neha SachdevaSenior Correspondent Ruby JainCorrespondent Aniket Shina Kanika Chauhan Kiran KumariAdmin Head ChetramHead‐Marketing P.S. Saini DGM‐Marketing Farha KhanSr. Manager‐Marketing K.J. Saranya Hrituparna BanerjeeManager‐Marketing Sara KhanAsst. Manager‐Marketing Sarla Singh Sarita Singh Jyoti Sharma Megha SharmaSr. Executive‐Marketing Afsana Malik Sujata Gautam Chunki Bhutia Poonam BishwakarmaHead‐Circulation Nishant Kr. TaakSr. Executive‐Circulation Chander Dev Bhatt Rahul Singh Abdus Samad Sukumar Dalai Ritika Goel Pooja Bisht Aruna JanaHead Pre‐Press Dharmendra KumarDesigning Yogesh KumarOffice Assistant Devendra Singh Prem Kumar Ranjan

D.D. NAIRVP International Business (Russia & CIS Countries) 6 Mikluho‐Maklaya STR, Moscow, Russia 117198Mob: +7903729 98 30, Off.: +7499501 99 10 Email: ddnair@krishijagran.com

M. MezhukanalMiddle East

E‐16F‐33, Hamriyah Free Zone, Sharjha, UAE Ph.: +971502870465, Email: mezhukanal@krishijagran.com

Enhancing Agricultural Growth and Rural Income ..........................4

Crop Insurance—The Protec�on & Availability: A farmer's Choice............................................................................6

Transforma�on@ locusts into fodder..............................................9

RBL Bank aims to be big in Rural & Agriculture Banking Sector............................................................10

House Hold Economy of a Farmer in India....................................13

Breaking the myths surrounding the an� GMO Propaganda........19

Halal Exports May Help Russia's Agrarian Sector To Grow............22

Agriculture News...........................................................................25

Indian agriculture has shown impressive growth during the recent past and all the signs are poin�ng to a con�nua�on of this

trend in future also. But deficit rainfall during the last kharif season and widespread crop damage due to adverse weather condi�ons in this rabi season have slowed down the growth process, which may further deteriorate in the likelihood of deficit rainfall in this kharif season. Cumula�ve effect of p r o d u c � o n s h o r � a l l s i n t h r e e consecu�ve crop seasons has put pressure on the farm economy. This is a cause of worry as there is a posi�ve outlook of the economy as a whole, and yet agriculture may lag far behind. The immediate effect of shor�all in farm income will be on both consump�on and produc�on decisions of farmers. Therefore, it is important to expedite the release of compensa�on to farmers, and encourage financial ins�tu�ons to

advance loans to farmers. Recent debt and investment survey of NSSO has shown that rural poor s�ll have limited access to ins�tu�onal finance and they borrow from informal sources at a very high rate of interest. The income shor�all years can however be used for popularizing risk sharing mechanism like crop insurance as farmers can be�er understand the benefits of crop insurance. There are now insurance products directly linked with weather and crop loss events. The agriculture department should also build capacity of farmers to use their tradi�onal risk

management methods, which will require informa�on flow to them about weather forecasts.

In the long run, policy thrust should be on accelera�ng economic growth and promo�ng inclusiveness by raising agricultural produc�vity. Several noteworthy ini�a�ves have been ini�ated taken in the Union Budget in this direc�on. A�rac�ng investment, development of infrastructure and encouraging entrepreneurship are special areas of focus. Since agriculture

2015 MAY ISSUE-5 AGRICULTURE WORLD 05

is an important sector to promote inclusive growth and reduce poverty, it is essen�al to address the binding constrains to higher agricultural produc�vity, besides ensuring food and nutri�onal security. This budget has touched three key constraints, namely water, credit and markets for higher agricultural produc�vity. There are alloca�ons for irriga�on development, but this is more of an implementa�on issue as there is moderate expansion of irrigated area despite successive alloca�ons in the past. The measures to increase credit flow, especially long‐term credit, and strengthening capacity of rural financial ins�tu�ons (cooperat‐ves and regional rural banks) will go a long way in improving financial inclusion of farmers and rural poor. This is important when the cost of produc‐�on is rising. At the same �me the livestock and hor�culture, which are the fast growing sectors, need more capital. Capital requirement is going to increase further as farmers shi� to farm mechaniza�on for higher resource use efficiency and produc�vity. Establish‐ment of the Na�onal Agricultural Market is another historical effort to improve access of small farmers to product markets and to ensure be�er prices for their products. This will be realized through greater informa�on flow faci l ita�ng price discovery, reduc�on of market fees and other costs, and interstate movement of agricultural produce.

Besides these direct proposals, there are other ini�a�ves which shall benefit agriculture and rural develop‐ment. Establishment of MUDRA shall help in promo�ng small business, which are located in rural areas and small towns. These micro and small busine‐

sses are also providing non‐farm services and inputs. Credit needs of these businesses are higher than what can be usually met through self‐help group ini�a�ves but much lower than what commercial banks are willing to entertain. Thus, MUDRA bank is a welcome step to meet capital require‐ment of rural non‐farm enterprises, and development of rural non‐farm sector will help provide more employment and reduce poverty.

Third important ini�a�ve of the government in the context of rural development is the “Gramin Kaushal Yo j a n a ” w h i c h s h a l l i m p r o v e employabi‐lity of rural youth in non‐agricultural sectors of the economy. This in a way shall accelerate shi� of popula�on dependent on agriculture to other sectors, and thus enhance per capita income and generate some surplus in agriculture. The benefits of this scheme shall be much stronger when rural literacy rate is rising and new employment opportuni�es are created in non‐farm sectors.

Dr. Suresh PalDivision of Agricultural Economics

Indian Agricultural Research Ins�tuteNew Delhi‐110012

Enhancing Agricultural Growth and Rural Income

04 ISSUE-5 MAY 2015AGRICULTURE WORLD www.krishijagran.com

The substan�al alloca�ons are made for e lectr ifica�on, d ig ita l connec�vity, rural infrastructure and MNREGA, which are also expected to improve produc�ve capacity of agriculture through be�er rural infrastr‐ucture and informa�on. Thus, steps taken outside agriculture may prove to be quite effec�ve in increas ing agricultural produc�vity and income. But these may fall short to address the income inequality, as other sectors are likely to grow much faster than the agricultural sector. Therefore, social safety nets like the recently launched income insurance and pension scheme, and other income enhancing opportu‐ni�es in rural areas shall assume greater significance in reducing rural‐urban disparity and coping with the adversi‐�es.

www.krishijagran.com

The agriculture department should also build capacity of farmers to use their traditional risk management methods, which will require information flow to them about weather forecasts.

Establishment of MUDRA shall help in promoting small business, which are located in rural areas and small towns.

AEFI Enhancing Agricultural Growth and Rural Income AEFIEnhancing Agricultural Growth and Rural Income

Indian agriculture has shown impressive growth during the recent past and all the signs are poin�ng to a con�nua�on of this

trend in future also. But deficit rainfall during the last kharif season and widespread crop damage due to adverse weather condi�ons in this rabi season have slowed down the growth process, which may further deteriorate in the likelihood of deficit rainfall in this kharif season. Cumula�ve effect of p r o d u c � o n s h o r � a l l s i n t h r e e consecu�ve crop seasons has put pressure on the farm economy. This is a cause of worry as there is a posi�ve outlook of the economy as a whole, and yet agriculture may lag far behind. The immediate effect of shor�all in farm income will be on both consump�on and produc�on decisions of farmers. Therefore, it is important to expedite the release of compensa�on to farmers, and encourage financial ins�tu�ons to

advance loans to farmers. Recent debt and investment survey of NSSO has shown that rural poor s�ll have limited access to ins�tu�onal finance and they borrow from informal sources at a very high rate of interest. The income shor�all years can however be used for popularizing risk sharing mechanism like crop insurance as farmers can be�er understand the benefits of crop insurance. There are now insurance products directly linked with weather and crop loss events. The agriculture department should also build capacity of farmers to use their tradi�onal risk

management methods, which will require informa�on flow to them about weather forecasts.

In the long run, policy thrust should be on accelera�ng economic growth and promo�ng inclusiveness by raising agricultural produc�vity. Several noteworthy ini�a�ves have been ini�ated taken in the Union Budget in this direc�on. A�rac�ng investment, development of infrastructure and encouraging entrepreneurship are special areas of focus. Since agriculture

2015 MAY ISSUE-5 AGRICULTURE WORLD 05

is an important sector to promote inclusive growth and reduce poverty, it is essen�al to address the binding constrains to higher agricultural produc�vity, besides ensuring food and nutri�onal security. This budget has touched three key constraints, namely water, credit and markets for higher agricultural produc�vity. There are alloca�ons for irriga�on development, but this is more of an implementa�on issue as there is moderate expansion of irrigated area despite successive alloca�ons in the past. The measures to increase credit flow, especially long‐term credit, and strengthening capacity of rural financial ins�tu�ons (cooperat‐ves and regional rural banks) will go a long way in improving financial inclusion of farmers and rural poor. This is important when the cost of produc‐�on is rising. At the same �me the livestock and hor�culture, which are the fast growing sectors, need more capital. Capital requirement is going to increase further as farmers shi� to farm mechaniza�on for higher resource use efficiency and produc�vity. Establish‐ment of the Na�onal Agricultural Market is another historical effort to improve access of small farmers to product markets and to ensure be�er prices for their products. This will be realized through greater informa�on flow faci l ita�ng price discovery, reduc�on of market fees and other costs, and interstate movement of agricultural produce.

Besides these direct proposals, there are other ini�a�ves which shall benefit agriculture and rural develop‐ment. Establishment of MUDRA shall help in promo�ng small business, which are located in rural areas and small towns. These micro and small busine‐

sses are also providing non‐farm services and inputs. Credit needs of these businesses are higher than what can be usually met through self‐help group ini�a�ves but much lower than what commercial banks are willing to entertain. Thus, MUDRA bank is a welcome step to meet capital require‐ment of rural non‐farm enterprises, and development of rural non‐farm sector will help provide more employment and reduce poverty.

Third important ini�a�ve of the government in the context of rural development is the “Gramin Kaushal Yo j a n a ” w h i c h s h a l l i m p r o v e employabi‐lity of rural youth in non‐agricultural sectors of the economy. This in a way shall accelerate shi� of popula�on dependent on agriculture to other sectors, and thus enhance per capita income and generate some surplus in agriculture. The benefits of this scheme shall be much stronger when rural literacy rate is rising and new employment opportuni�es are created in non‐farm sectors.

Dr. Suresh PalDivision of Agricultural Economics

Indian Agricultural Research Ins�tuteNew Delhi‐110012

Enhancing Agricultural Growth and Rural Income

04 ISSUE-5 MAY 2015AGRICULTURE WORLD www.krishijagran.com

The substan�al alloca�ons are made for e lectr ifica�on, d ig ita l connec�vity, rural infrastructure and MNREGA, which are also expected to improve produc�ve capacity of agriculture through be�er rural infrastr‐ucture and informa�on. Thus, steps taken outside agriculture may prove to be quite effec�ve in increas ing agricultural produc�vity and income. But these may fall short to address the income inequality, as other sectors are likely to grow much faster than the agricultural sector. Therefore, social safety nets like the recently launched income insurance and pension scheme, and other income enhancing opportu‐ni�es in rural areas shall assume greater significance in reducing rural‐urban disparity and coping with the adversi‐�es.

www.krishijagran.com

The agriculture department should also build capacity of farmers to use their traditional risk management methods, which will require information flow to them about weather forecasts.

Establishment of MUDRA shall help in promoting small business, which are located in rural areas and small towns.

AEFI Enhancing Agricultural Growth and Rural Income AEFIEnhancing Agricultural Growth and Rural Income

Ag r i c u l t u r e I n s u r a n c e Company of India (AIC) an en�ty created at the behest of the Government of India

and the market leader in all forms of crop insurance work intensively in developing awareness as to how the insurance concept works. The primary objec�ve of Crop Insurance is to provide financial security to farmers against agricultural risk. Insurance, by nature, involves spa�al and temporal spread of risk, wherein losses paid to farmers in an area are made good by farmers of

other area, and also losses paid during bad years are made good by good or normal years.

A I C , d e s i g n a t e d b y t h e Government of India as its sole “ Implemen�ng Agency ” for the Government formulated Na�onal A g r i c u l t u ra l I n s u ra n c e S c h e m e popularly known as N A I S, being implemented from Rabi 1999‐2000, started its opera�ons from April 2003. AIC insures more than 35 crops during Kharif and an equal number of crops during Rabi season. Weather based

crop insurance arrived in India during Kharif 2003 season through BASIX a micro finance ins�tu�on. AIC, created exc l u s i ve l y to i m p l e m e nt c ro p insurance schemes, implemented weather insurance scheme on pilot basis from Kharif 2004 since it appeared a more promising risk mi�ga�on s c h e m e . G o v e r n m e n t o f I n d i a formulated Weather Based Crop I n s u ra n c e S c h e m e s w h i c h w a s implemented on a pilot basis in Karnataka State in consulta�on with the State Government as an alterna�ve to NAIS during Kharif 2007. The Scheme was operated on an actuarial basis with an element of subsidy. For this purpose government allocated Rs. 100 crore in 2007‐08.

Pursuant to the announcement in the Union Budget, AIC launched the pilot on weather based crop insurance d u r i n g K h a r i f 2 0 0 7 s e a s o n i n

2015 MAY ISSUE-5 AGRICULTURE WORLD 07

Karnataka in about 70 Hoblis for eight crops, as an alterna�ve to NAIS. AIC designed a customized weather insurance product for the pilot, providing for crop‐stage specific payout against con�ngencies of deficit and excess rainfall. About 50,000 hectares of crops were insured for a risk value of Rs. 500 million under the pilot. The number of states was increased gradually season a�er season. Government of India has announced Na�onal Crop Insurance Programme ( N C I P ) compris ing Modified Na�onal Agr icultural Insurance Scheme (MNAIS), Weather Based Crop Insurance Scheme (WBCIS) and Coconut Palm Insurance Scheme (CPIS) from Rabi 2013‐14.

Whilst claims under NAIS, MNAIS & W B C I S a r e b a s e d o n ' a r e a approach', CPIS is on 'individual assessment' basis; the salient features of the schemes are:

Modified Na�onal Agricultural Insurance Scheme (MNAIS):

· Village Panchayat to be the unit of insurance for major crops where yield data for at least 5 years is available

· Coverage for prevented sowing/ plan�ng risks; comprehensive

06 ISSUE-5 MAY 2015AGRICULTURE WORLD

CROP INSURANCEThe Protection & Availability: A farmer's Choice

AEFI Crop Insurance— The Protection & Availability: A Farmer's Choice AEFICrop Insurance— The Protection & Availability: A Farmer's Choice

www.krishijagran.comwww.krishijagran.com

Reference Unit Area are eligible for coverage.

· Compulsory for loanee farmers and voluntary for non‐loanee farmers.

· Sum Insured is pre‐defined (broadly the cost of produc�on) per unit area

· Actuarial premium rates are applicable and capped at 10% for Kharif and 8% for Rabi for food crops & oilseeds and 12% for annual commercial/hor�cultural crops

· Up‐front premium subsidy to all farmers irrespec�ve of their landholdings and crops insured not exceeding normal Sum Insured of the no�fied crop; and equally shared by GOI and the respec�ve State Government

· The insured cul�vators become eligible for payout if the 'Actual Weather' recorded at a RWS during the specified �me period shows devia�on as compared to the specified 'Trigger Weather'.

· Payouts normally within 45 days from the end of the insurance/ risk period.

· En�re claims are borne by the insurance company.

Coconut Palm Insurance Scheme (CPIS):

· Cover offered for healthy 'nut' bearing Coconut Palms of all varie�es; Dwarf & Hybrid palms in

cover for standing crops; post‐harvest losses due to cyclonic rains in cut & spread condi�on for a maximum of two weeks'

· O n a c c o u n t ' p ay m e n t n o t exceeding 25% of likely claims due to Mid‐season adversity

· Preceding seven years yield to be considered, excluding maximum 2 years in which a calamity such as drought was declared by the concerned authority of Govt., for arriving at the average yield.

· Indemnity levels are 90% & 80%

· Uniform seasonality discipline for loanee and non‐loanee farmers

· Actuarial premium rates capped at 11% for Kharif and 9% for Rabi for food crops & Oilseeds; in case of and for annual commercial/ hor�cultural crops rates are capped at 13%

· Up‐front premium subsidy to all farmers irrespec�ve of their landholdings and crops insured to the extent of normal Sum Insured or capped Sum Insured; and equally shared by GOI and the respec�ve State Government

· Individual assessment of claims in case of spec ified loca l i zed calami�es e.g. landslide and hailstorm

· Payment of post – harvest losses in coastal areas.

· En�re claims are borne by the insurance company.

Weather Based Crop Insurance Scheme (WBCIS):

· Parametric insurance product designed to provide insurance protec�on against likely losses in c ro p y i e l d re s u l � n g f ro m 'adverse weather incidence' – deficit & excess rainfall, un‐seasonal rainfall, rainy days, dry‐spell, dry days, rela�ve humidity, heat, frost, wind speed & a combina�on of the above

· Add‐on/Index‐Plus cover for Hailstorms & Cloud‐burst for farmers

· A l l c u l � v a t o r s i n c l u d i n g sharecroppers, tenant farmers growing the no�fied crops in any

Currently, AIC covers 24 million farmers under its various crop insurance schemes. Of these, more than 86% belong to the “small & marginal” category. The major challenge of Crop Insurance business is to reach the remotest farmer in the country and service him at an affordable cost.

“

”

G o v e r n m e n t o f I n d i a formulated Weather Based Crop Insurance Schemes which was implemented on a pilot basis in Karnataka State in consultation with the State Government as an alternative to NAIS during Kharif 2007. The Scheme was operated on an actuarial basis with an element of subsidy.

Ag r i c u l t u r e I n s u r a n c e Company of India (AIC) an en�ty created at the behest of the Government of India

and the market leader in all forms of crop insurance work intensively in developing awareness as to how the insurance concept works. The primary objec�ve of Crop Insurance is to provide financial security to farmers against agricultural risk. Insurance, by nature, involves spa�al and temporal spread of risk, wherein losses paid to farmers in an area are made good by farmers of

other area, and also losses paid during bad years are made good by good or normal years.

A I C , d e s i g n a t e d b y t h e Government of India as its sole “ Implemen�ng Agency ” for the Government formulated Na�onal A g r i c u l t u ra l I n s u ra n c e S c h e m e popularly known as N A I S, being implemented from Rabi 1999‐2000, started its opera�ons from April 2003. AIC insures more than 35 crops during Kharif and an equal number of crops during Rabi season. Weather based

crop insurance arrived in India during Kharif 2003 season through BASIX a micro finance ins�tu�on. AIC, created exc l u s i ve l y to i m p l e m e nt c ro p insurance schemes, implemented weather insurance scheme on pilot basis from Kharif 2004 since it appeared a more promising risk mi�ga�on s c h e m e . G o v e r n m e n t o f I n d i a formulated Weather Based Crop I n s u ra n c e S c h e m e s w h i c h w a s implemented on a pilot basis in Karnataka State in consulta�on with the State Government as an alterna�ve to NAIS during Kharif 2007. The Scheme was operated on an actuarial basis with an element of subsidy. For this purpose government allocated Rs. 100 crore in 2007‐08.

Pursuant to the announcement in the Union Budget, AIC launched the pilot on weather based crop insurance d u r i n g K h a r i f 2 0 0 7 s e a s o n i n

2015 MAY ISSUE-5 AGRICULTURE WORLD 07

Karnataka in about 70 Hoblis for eight crops, as an alterna�ve to NAIS. AIC designed a customized weather insurance product for the pilot, providing for crop‐stage specific payout against con�ngencies of deficit and excess rainfall. About 50,000 hectares of crops were insured for a risk value of Rs. 500 million under the pilot. The number of states was increased gradually season a�er season. Government of India has announced Na�onal Crop Insurance Programme ( N C I P ) compris ing Modified Na�onal Agr icultural Insurance Scheme (MNAIS), Weather Based Crop Insurance Scheme (WBCIS) and Coconut Palm Insurance Scheme (CPIS) from Rabi 2013‐14.

Whilst claims under NAIS, MNAIS & W B C I S a r e b a s e d o n ' a r e a approach', CPIS is on 'individual assessment' basis; the salient features of the schemes are:

Modified Na�onal Agricultural Insurance Scheme (MNAIS):

· Village Panchayat to be the unit of insurance for major crops where yield data for at least 5 years is available

· Coverage for prevented sowing/ plan�ng risks; comprehensive

06 ISSUE-5 MAY 2015AGRICULTURE WORLD

CROP INSURANCEThe Protection & Availability: A farmer's Choice

AEFI Crop Insurance— The Protection & Availability: A Farmer's Choice AEFICrop Insurance— The Protection & Availability: A Farmer's Choice

www.krishijagran.comwww.krishijagran.com

Reference Unit Area are eligible for coverage.

· Compulsory for loanee farmers and voluntary for non‐loanee farmers.

· Sum Insured is pre‐defined (broadly the cost of produc�on) per unit area

· Actuarial premium rates are applicable and capped at 10% for Kharif and 8% for Rabi for food crops & oilseeds and 12% for annual commercial/hor�cultural crops

· Up‐front premium subsidy to all farmers irrespec�ve of their landholdings and crops insured not exceeding normal Sum Insured of the no�fied crop; and equally shared by GOI and the respec�ve State Government

· The insured cul�vators become eligible for payout if the 'Actual Weather' recorded at a RWS during the specified �me period shows devia�on as compared to the specified 'Trigger Weather'.

· Payouts normally within 45 days from the end of the insurance/ risk period.

· En�re claims are borne by the insurance company.

Coconut Palm Insurance Scheme (CPIS):

· Cover offered for healthy 'nut' bearing Coconut Palms of all varie�es; Dwarf & Hybrid palms in

cover for standing crops; post‐harvest losses due to cyclonic rains in cut & spread condi�on for a maximum of two weeks'

· O n a c c o u n t ' p ay m e n t n o t exceeding 25% of likely claims due to Mid‐season adversity

· Preceding seven years yield to be considered, excluding maximum 2 years in which a calamity such as drought was declared by the concerned authority of Govt., for arriving at the average yield.

· Indemnity levels are 90% & 80%

· Uniform seasonality discipline for loanee and non‐loanee farmers

· Actuarial premium rates capped at 11% for Kharif and 9% for Rabi for food crops & Oilseeds; in case of and for annual commercial/ hor�cultural crops rates are capped at 13%

· Up‐front premium subsidy to all farmers irrespec�ve of their landholdings and crops insured to the extent of normal Sum Insured or capped Sum Insured; and equally shared by GOI and the respec�ve State Government

· Individual assessment of claims in case of spec ified loca l i zed calami�es e.g. landslide and hailstorm

· Payment of post – harvest losses in coastal areas.

· En�re claims are borne by the insurance company.

Weather Based Crop Insurance Scheme (WBCIS):

· Parametric insurance product designed to provide insurance protec�on against likely losses in c ro p y i e l d re s u l � n g f ro m 'adverse weather incidence' – deficit & excess rainfall, un‐seasonal rainfall, rainy days, dry‐spell, dry days, rela�ve humidity, heat, frost, wind speed & a combina�on of the above

· Add‐on/Index‐Plus cover for Hailstorms & Cloud‐burst for farmers

· A l l c u l � v a t o r s i n c l u d i n g sharecroppers, tenant farmers growing the no�fied crops in any

Currently, AIC covers 24 million farmers under its various crop insurance schemes. Of these, more than 86% belong to the “small & marginal” category. The major challenge of Crop Insurance business is to reach the remotest farmer in the country and service him at an affordable cost.

“

”

G o v e r n m e n t o f I n d i a formulated Weather Based Crop Insurance Schemes which was implemented on a pilot basis in Karnataka State in consultation with the State Government as an alternative to NAIS during Kharif 2007. The Scheme was operated on an actuarial basis with an element of subsidy.

the age range of 4‐60 years and Tall variety palms in age range of 7‐60 years

· Annual Insurance policy. Can also be taken for upto 3 years

· Premium subsidy at 50% by CDB and 25% by par�cipa�ng State

· Scheme covers perils leading to death/loss or palm becoming un‐p r o d u c � v e d u e t o S t o r m , Hailstorm, Cyclone, Typhoon, tornado, heavy rains, flood & inunda�on, Pests & Diseases of widespread nature caus ing , irreparable damages to palm, accidental fire, forest fire& bush fire, l ightening, Earthquake, landsl ide & tsunami, severe drought and consequen�al total loss

· The insurance coverage and claim assessment shall be on 'individual tree' basis.

· Claims are payable within one month from date when all relevant cer�fied details of claim are received in the office subject to receipt of premium subsidy from stakeholders.

The Government proposes to use modern technology like General Packet Radio Service (GPRS) and mobile phones etc. for effec�ve implementa�on of the crop insurance schemes in the country. There is a provis ion under Na�onal Crop Insurance Programme to explore and adopt sate l l i te imagery, agro‐meteorological and econometric and a combina�on of such techniques, etc. as alterna�ve yield assessment

techniques; Pilots may be taken up to explore the possibili�es to use modern technology like Remote Sensing Technology (RST)/Satellite imageries in consulta�on with Ministry of Earth Sciences / Ministry of S & T in this regard.

Presently, apart from AIC, there are ten private insurers par�cipa�ng in the implementa�on of WBCIS and MNAIS for different crops across different territories in the country.

Both these products are available through financial ins�tu�ons as well through intermediaries and to the farmers i.e. sharecroppers, tenant farmers.

Both weather based crop insurance and area yield based crop insurance seem to have rela�ve strengths and weaknesses. Weather insurance seems to score be�er when it comes to data accuracy, transparency and quick se�lement of payouts. On the contrary, Area Yield insurance seems to do be�er in terms of scope of insurance (comprehensive coverage of risks), product design and to some extent, lower basis risk compared to weather insurance.

Apart from Govt. Schemes, viz. NAIS, MNAIS & WBCIS, AIC's constant research & developmental efforts have yielded a range of in‐house farmer‐friendly, tailor‐made products for specific crops and risks comprising –

· Rainfall Insurance

· Varsha Bima

· Mango Insurance

· Generic Weather Insurance (Rabi)

· Rainfall Insurance Scheme for Coffee

· Grape Insurance

Tradi�onal Crop Insurance

· Potato Insurance

· Bio‐fuel tree/plant insurance

· Coconut Palm Insurance

· Rubber planta�on Insurance

· Pulpwood Insurance

In Andhra Pradesh and Bihar, AIC has piloted a “Community Based Individual Farm Insurance Scheme” (CBIFIS), where a role for the farming co m m u n i t y i n e n ro l m e nt , c ro p

monitoring and loss assessment is envisaged with the appointment of an 'Anchor' from the community itself. The loss assessment would be periodically supported by videography in the geo‐tagged and geo‐fenced fields. This approach intends to minimize the basis risk and provide actual indemnity to each suffering farmer.

A Double‐trigger Crop Insurance (Weather & Yield) product has been developed.

In Karnataka, a “Farmers' Loyalty Bonus Program” has been introduced on experimental basis wherein a Premium discount is offered to long‐term repeat farmers in an effort to retain them over mul�ple insurance periods.

Currently, AIC covers 24 million farmers under i t s var ious crop insurance schemes. Of these, more than 86% belong to the “small & m a rg i n a l ” cate go r y. T h e m a j o r challenge of Crop Insurance business is to reach the remotest farmer in the country and service him at an affordable cost.

There are s�ll crops in India which do not have adequate historical yield data in some areas. Many of these crops do not lend themselves to 'individual based insurance' due to either low value or high complexity. Ul�mately, the success of Crop Insurance program in India would depend on crop insurance product design, steps taken to minimize the basis risk, crea�ng realis�c & appropr iate communica�on for different stakeholders, adop�ng reliable & sustainable pricing including governmental subsidies and product servicing & �mely payout.

S. S. SaxenaDeputy General Manager

Agriculture Insurance Company of India Limited (AIC), New Delhi

www.aicofindia.com

08 ISSUE-5 MAY 2015AGRICULTURE WORLD www.krishijagran.com 2015 MAY ISSUE-5 AGRICULTURE WORLD 09

AEFI

www.krishijagran.com

Following a practice in China and o t h e r A s i a n c o u n t r i e s , researchers at the Chelyabinsk State Agriculture Engineering

Academy have invented mobi le machines capable of collecting locusts and grinding them into nutritious fodder for livestock. The scientists claim other solutions already present on the market are not as efficient since they involve collecting adult insects which have already sprouted wings, as they lose most of their nutritional value by then. The inventors believe that locusts should be processed into fodder while still wingless. The tests of the new technology, conducted in Southern Russia, have shown some very positive results.Transforming foe into food

With about 75 percent of their dry weight composed of protein, locusts are much more nutritious than meat or fish (the percentage of protein is 17 for pork and lamb, and 21 for fish). The Russian developers affirm that while similar solutions for transforming locusts into fodder are already implemented in some countries, including China, they rely exclusively on catching winged adult insects, and at this point of their life-cycle they lose most of their nutritional value.

“Winged locusts contain less nutrients, so when they are processed, the results are underwhelming. We catch them as they are moving through the fields, at the stage when they quickly consume vegetation and grow. The machine we invented collects about 70 percent of a swarm, crushing the rest. After a single pass, no insects are left,” says provost of Chelyabinsk Academy Peter Svechnikov.

With about 75 percent of their dry weight composed of protein, locusts are much more nutritious than meat or fish. Source: Shutterstock / Legion‐Media

Global market opportunitiesThe technology was born in the Southern

Urals about 10 years ago, after one of the inventors stumbled on an article lamenting the great damage caused by the insects and the enormous expenses of containing the threat.

“Our partners in Tajikistan, Uzbekistan, Kalmykia and Saratov have been requesting us to develop a solution to process locusts for a long time,” Svechnikov says. “We tackled the issue, making several trips to the south of the country to test some solutions. The technology has already become popular, with orders pouring in ever since, some of them from abroad.”

The developers estimate the implementa-tion of the new technology to cost a $30,000 to $40,000. The buyer would be able to recover the costs in a week. The cost of their equipment is put at $10,000. According to the scientists, the production cost of a kilogram of locust meal will be about 10 rubles (20 cents), the market price of the fodder being five times higher, to the tune of a dollar.

Expert perplexedThe admittedly unusual idea of processing

locusts into animal feed left most Russian agriculture experts somewhat confused. None of the officials at the Russian Animal Farmers Union, Ministry of Agriculture or the Union of Agricultural Cooperatives could comment on the prospects of the new technology.

Chairman of the Urals Livestock Breeders' Union Ilya Bondarev believes there are not enough locusts in Russia for the technology to be financially feasible. “Think of how high the consumption of animal feed is, and compare that to the number of locusts that is needed,”

Bondarev told RIR. “Besides, locusts are sprayed with pesticides. How exactly are we supposed to use contaminated insects in fodder.”

Nevertheless, the inventors are convinced there will be enough insects to go by as the mass of an average locust swarm can touch 35,000 tons, and invasions occur each year. Georgy Gaidadin, CEO of the Russian fodder production company Bioenergiya believes the technology holds great promise. “At the moment, fishmeal is considered to be the most nutritious fodder supplement. But the world is running out of fish, so locust meal may well become a exce l lent alternative source of easily digestible protein for different species of domestic animals and birds,” says Gaidadin.

Darya KezinaRussia India Report

Transformation@ locusts into fodder Russian scientists have devised a way to transform locusts into animal feed. According to the inventors, the insects should be processed while still at nymph stage and wingless, their nutritional value being much higher at this point.

“

”

Transformation@ locusts into fodder

Why locusts?Locusts attack crops in swarms 1.5 to 2 kilometers wide, the “carpet” of insects covering the ground being 20 to 25 centimeters thick. Locust invasions occur yearly in all the regions of Southern Russia and Kazakhstan. According to the scientists at Chelyabinsk Academy, locusts caused billions of dollars worth of damage to the farmers of Bashkiria and the Southern Urals in 2014.

AEFI Crop Insurance— The Protection & Availability: A Farmer's Choice

the age range of 4‐60 years and Tall variety palms in age range of 7‐60 years

· Annual Insurance policy. Can also be taken for upto 3 years

· Premium subsidy at 50% by CDB and 25% by par�cipa�ng State

· Scheme covers perils leading to death/loss or palm becoming un‐p r o d u c � v e d u e t o S t o r m , Hailstorm, Cyclone, Typhoon, tornado, heavy rains, flood & inunda�on, Pests & Diseases of widespread nature caus ing , irreparable damages to palm, accidental fire, forest fire& bush fire, l ightening, Earthquake, landsl ide & tsunami, severe drought and consequen�al total loss

· The insurance coverage and claim assessment shall be on 'individual tree' basis.

· Claims are payable within one month from date when all relevant cer�fied details of claim are received in the office subject to receipt of premium subsidy from stakeholders.

The Government proposes to use modern technology like General Packet Radio Service (GPRS) and mobile phones etc. for effec�ve implementa�on of the crop insurance schemes in the country. There is a provis ion under Na�onal Crop Insurance Programme to explore and adopt sate l l i te imagery, agro‐meteorological and econometric and a combina�on of such techniques, etc. as alterna�ve yield assessment

techniques; Pilots may be taken up to explore the possibili�es to use modern technology like Remote Sensing Technology (RST)/Satellite imageries in consulta�on with Ministry of Earth Sciences / Ministry of S & T in this regard.

Presently, apart from AIC, there are ten private insurers par�cipa�ng in the implementa�on of WBCIS and MNAIS for different crops across different territories in the country.

Both these products are available through financial ins�tu�ons as well through intermediaries and to the farmers i.e. sharecroppers, tenant farmers.

Both weather based crop insurance and area yield based crop insurance seem to have rela�ve strengths and weaknesses. Weather insurance seems to score be�er when it comes to data accuracy, transparency and quick se�lement of payouts. On the contrary, Area Yield insurance seems to do be�er in terms of scope of insurance (comprehensive coverage of risks), product design and to some extent, lower basis risk compared to weather insurance.

Apart from Govt. Schemes, viz. NAIS, MNAIS & WBCIS, AIC's constant research & developmental efforts have yielded a range of in‐house farmer‐friendly, tailor‐made products for specific crops and risks comprising –

· Rainfall Insurance

· Varsha Bima

· Mango Insurance

· Generic Weather Insurance (Rabi)

· Rainfall Insurance Scheme for Coffee

· Grape Insurance

Tradi�onal Crop Insurance

· Potato Insurance

· Bio‐fuel tree/plant insurance

· Coconut Palm Insurance

· Rubber planta�on Insurance

· Pulpwood Insurance

In Andhra Pradesh and Bihar, AIC has piloted a “Community Based Individual Farm Insurance Scheme” (CBIFIS), where a role for the farming co m m u n i t y i n e n ro l m e nt , c ro p

monitoring and loss assessment is envisaged with the appointment of an 'Anchor' from the community itself. The loss assessment would be periodically supported by videography in the geo‐tagged and geo‐fenced fields. This approach intends to minimize the basis risk and provide actual indemnity to each suffering farmer.

A Double‐trigger Crop Insurance (Weather & Yield) product has been developed.

In Karnataka, a “Farmers' Loyalty Bonus Program” has been introduced on experimental basis wherein a Premium discount is offered to long‐term repeat farmers in an effort to retain them over mul�ple insurance periods.

Currently, AIC covers 24 million farmers under i t s var ious crop insurance schemes. Of these, more than 86% belong to the “small & m a rg i n a l ” cate go r y. T h e m a j o r challenge of Crop Insurance business is to reach the remotest farmer in the country and service him at an affordable cost.

There are s�ll crops in India which do not have adequate historical yield data in some areas. Many of these crops do not lend themselves to 'individual based insurance' due to either low value or high complexity. Ul�mately, the success of Crop Insurance program in India would depend on crop insurance product design, steps taken to minimize the basis risk, crea�ng realis�c & appropr iate communica�on for different stakeholders, adop�ng reliable & sustainable pricing including governmental subsidies and product servicing & �mely payout.

S. S. SaxenaDeputy General Manager

Agriculture Insurance Company of India Limited (AIC), New Delhi

www.aicofindia.com

08 ISSUE-5 MAY 2015AGRICULTURE WORLD www.krishijagran.com 2015 MAY ISSUE-5 AGRICULTURE WORLD 09

AEFI

www.krishijagran.com

Following a practice in China and o t h e r A s i a n c o u n t r i e s , researchers at the Chelyabinsk State Agriculture Engineering

Academy have invented mobi le machines capable of collecting locusts and grinding them into nutritious fodder for livestock. The scientists claim other solutions already present on the market are not as efficient since they involve collecting adult insects which have already sprouted wings, as they lose most of their nutritional value by then. The inventors believe that locusts should be processed into fodder while still wingless. The tests of the new technology, conducted in Southern Russia, have shown some very positive results.Transforming foe into food

With about 75 percent of their dry weight composed of protein, locusts are much more nutritious than meat or fish (the percentage of protein is 17 for pork and lamb, and 21 for fish). The Russian developers affirm that while similar solutions for transforming locusts into fodder are already implemented in some countries, including China, they rely exclusively on catching winged adult insects, and at this point of their life-cycle they lose most of their nutritional value.

“Winged locusts contain less nutrients, so when they are processed, the results are underwhelming. We catch them as they are moving through the fields, at the stage when they quickly consume vegetation and grow. The machine we invented collects about 70 percent of a swarm, crushing the rest. After a single pass, no insects are left,” says provost of Chelyabinsk Academy Peter Svechnikov.

With about 75 percent of their dry weight composed of protein, locusts are much more nutritious than meat or fish. Source: Shutterstock / Legion‐Media

Global market opportunitiesThe technology was born in the Southern

Urals about 10 years ago, after one of the inventors stumbled on an article lamenting the great damage caused by the insects and the enormous expenses of containing the threat.

“Our partners in Tajikistan, Uzbekistan, Kalmykia and Saratov have been requesting us to develop a solution to process locusts for a long time,” Svechnikov says. “We tackled the issue, making several trips to the south of the country to test some solutions. The technology has already become popular, with orders pouring in ever since, some of them from abroad.”

The developers estimate the implementa-tion of the new technology to cost a $30,000 to $40,000. The buyer would be able to recover the costs in a week. The cost of their equipment is put at $10,000. According to the scientists, the production cost of a kilogram of locust meal will be about 10 rubles (20 cents), the market price of the fodder being five times higher, to the tune of a dollar.

Expert perplexedThe admittedly unusual idea of processing

locusts into animal feed left most Russian agriculture experts somewhat confused. None of the officials at the Russian Animal Farmers Union, Ministry of Agriculture or the Union of Agricultural Cooperatives could comment on the prospects of the new technology.

Chairman of the Urals Livestock Breeders' Union Ilya Bondarev believes there are not enough locusts in Russia for the technology to be financially feasible. “Think of how high the consumption of animal feed is, and compare that to the number of locusts that is needed,”

Bondarev told RIR. “Besides, locusts are sprayed with pesticides. How exactly are we supposed to use contaminated insects in fodder.”

Nevertheless, the inventors are convinced there will be enough insects to go by as the mass of an average locust swarm can touch 35,000 tons, and invasions occur each year. Georgy Gaidadin, CEO of the Russian fodder production company Bioenergiya believes the technology holds great promise. “At the moment, fishmeal is considered to be the most nutritious fodder supplement. But the world is running out of fish, so locust meal may well become a exce l lent alternative source of easily digestible protein for different species of domestic animals and birds,” says Gaidadin.

Darya KezinaRussia India Report

Transformation@ locusts into fodder Russian scientists have devised a way to transform locusts into animal feed. According to the inventors, the insects should be processed while still at nymph stage and wingless, their nutritional value being much higher at this point.

“

”

Transformation@ locusts into fodder

Why locusts?Locusts attack crops in swarms 1.5 to 2 kilometers wide, the “carpet” of insects covering the ground being 20 to 25 centimeters thick. Locust invasions occur yearly in all the regions of Southern Russia and Kazakhstan. According to the scientists at Chelyabinsk Academy, locusts caused billions of dollars worth of damage to the farmers of Bashkiria and the Southern Urals in 2014.

AEFI Crop Insurance— The Protection & Availability: A Farmer's Choice

10 ISSUE-5 MAY 2015AGRICULTURE WORLD www.krishijagran.com

RBL aims to be big in BankRural & Agriculture Banking Sector

R BL Bank is one of India's fastest growing banks serving over 14 lakh customers through its 183 branches; and

h a s d e l i v e r e d a s t o n g g r o w t h performance in FY 14‐15. One of the notable factors responsible for the Bank's growth has been significant growth in “Priority Sector Lending Business”. The Bank has achieved all its Priority Sector Lending as well as all sub‐sector targets for three years in a row including FY15. During FY 14‐15 the Bank's priority sector lending was seen at 47.86% as against mandated 40%. The bank has been honored as Best Bank Priority Sector Lending (Private Sector) at Dun & Bradstreet Banking Awards and as a Global Growth Company by the World Economic Forum in 2014. RBL Bank has also been recognised as India's Fastest Growing

Mid‐Sized Bank for three years in a row by Business Today – KPMG India's Best Bank Study.

Speaking to Agriculture World, Manoj Rawat, Head of Agribusiness at RBL Bank says, “Agriculture, Rural Banking and Financial Inclusion” will be next driver of growth for Indian banking Industry. An inclusive banking system has become a top priority to drive growth in the country and also to address the two key areas of concern namely, Financial Inclusion and Food S e c u r i t y. T h e s e t w o a re a s a re 'intertwined' and are set to drive the next phase of economic growth of the country which will be alot more par�cipa�ve, broad based & inclusive.”

1. What are the emerging opportuni‐�es for banks in Rural India?

A quiet yet sound revolu�on is

taking place in rural India where economic growth is not just about crea�ng wealth but also offering huge opportuni�es for banks to service the financially excluded. Today Rural Banking is being seen as a huge opportunity,with rural financial services being one of the fastest growing segments.

It is being increasingly recognized that Rural Business, Agriculture Business, Food Security, Financial Inclusion and MSME are serious business opportuni�es which can help develop a robust Rural Business model. The basket of products that Rural India requires will be far more wholesome than of Urban India. The various segments which are going to see the next big growth opportunity include Agribusiness, MSME, Rural Housing, Renewable Energy and Services.

2 . W h at i s t h e s i g n i fi ca n c e o f Agriculture in the Indian economy?

Agriculture sector remains the mainstay of the Indian economy (although it contributes about 14% of

Riding on strong growth trajectory, Ratnakar Bank Limited (RBL) aims to provide holistic services to farmers and rural customers with Value Chain approach.“ “

AEFI RBL Bank Rural & Agriculture Banking Sector aims to be big in

2015 MAY ISSUE-5 AGRICULTURE WORLD 11www.krishijagran.com

the na�onal Gross Domes�c Product (GDP) as 60% of Indian families are s�ll dependent on agricultural income for livelihood. India today is the largest producer of milk, pulses and spices. The country alsomaintains the largest ca�le herd and covers the largest area under w h e a t , r i c e a n d c o � o n . W h i l e agriculture share in India's economy has con�nued to decline due to the high growth rates of the industrial and services sectors, the agriculture sector's importance in India's economic and social well‐being goes well beyond this indicator.

3. What is the approach of RBL Bank towards Agr icu l ture and Rura l Banking?

Agribusiness credit is the most cri�cal non‐land input in agriculture and has played a pivotal role in increasing agricultural produc�on in India.

Although Agri‐credit has its own statutory significance and generates a strong goodwill with the Regulator and Government, at RBL Bank we approach

this as a huge business “opportunity” rather than an “obliga�on”. We believe Rural & Agriculture business offers huge business poten�al and can generate sustainable economic value to the Bank, farmers, customers and our other stakeholders. At RBL Bank we have iden�fied Agribusiness and Rural banking as one of the key areas for growth, and a driver for expansion of branch networks in Semi‐Urban and Rural India.

The Bank adopts a five‐pronged approach to increase its relevance in Rural India

· Focus on direct farmer banking requirements,

· Develop innova�ve products and market specific schemes for farmers and rural customers,

· Tap the en�re value chainincluding farmers, ar�sans and other players in the different catchments,

· I n c r e a s e o u t r e a c h t h ro u g h expansion of ins�tu�onal network and use of technology and

· Work with farmers and corporates t o fo rg e b o t h fo r w a rd a n d backward linkages .

4. How have you modelled your Agriculture business?

The Agribusiness for our bank has been modelled to address the different target markets in a focussed manner across the value chain.

AEFIRBL Bank Rural & Agriculture Banking Sector aims to be big in

10 ISSUE-5 MAY 2015AGRICULTURE WORLD www.krishijagran.com

RBL aims to be big in BankRural & Agriculture Banking Sector

R BL Bank is one of India's fastest growing banks serving over 14 lakh customers through its 183 branches; and

h a s d e l i v e r e d a s t o n g g r o w t h performance in FY 14‐15. One of the notable factors responsible for the Bank's growth has been significant growth in “Priority Sector Lending Business”. The Bank has achieved all its Priority Sector Lending as well as all sub‐sector targets for three years in a row including FY15. During FY 14‐15 the Bank's priority sector lending was seen at 47.86% as against mandated 40%. The bank has been honored as Best Bank Priority Sector Lending (Private Sector) at Dun & Bradstreet Banking Awards and as a Global Growth Company by the World Economic Forum in 2014. RBL Bank has also been recognised as India's Fastest Growing

Mid‐Sized Bank for three years in a row by Business Today – KPMG India's Best Bank Study.

Speaking to Agriculture World, Manoj Rawat, Head of Agribusiness at RBL Bank says, “Agriculture, Rural Banking and Financial Inclusion” will be next driver of growth for Indian banking Industry. An inclusive banking system has become a top priority to drive growth in the country and also to address the two key areas of concern namely, Financial Inclusion and Food S e c u r i t y. T h e s e t w o a re a s a re 'intertwined' and are set to drive the next phase of economic growth of the country which will be alot more par�cipa�ve, broad based & inclusive.”

1. What are the emerging opportuni‐�es for banks in Rural India?

A quiet yet sound revolu�on is

taking place in rural India where economic growth is not just about crea�ng wealth but also offering huge opportuni�es for banks to service the financially excluded. Today Rural Banking is being seen as a huge opportunity,with rural financial services being one of the fastest growing segments.

It is being increasingly recognized that Rural Business, Agriculture Business, Food Security, Financial Inclusion and MSME are serious business opportuni�es which can help develop a robust Rural Business model. The basket of products that Rural India requires will be far more wholesome than of Urban India. The various segments which are going to see the next big growth opportunity include Agribusiness, MSME, Rural Housing, Renewable Energy and Services.

2 . W h at i s t h e s i g n i fi ca n c e o f Agriculture in the Indian economy?

Agriculture sector remains the mainstay of the Indian economy (although it contributes about 14% of

Riding on strong growth trajectory, Ratnakar Bank Limited (RBL) aims to provide holistic services to farmers and rural customers with Value Chain approach.“ “

AEFI RBL Bank Rural & Agriculture Banking Sector aims to be big in

2015 MAY ISSUE-5 AGRICULTURE WORLD 11www.krishijagran.com

the na�onal Gross Domes�c Product (GDP) as 60% of Indian families are s�ll dependent on agricultural income for livelihood. India today is the largest producer of milk, pulses and spices. The country alsomaintains the largest ca�le herd and covers the largest area under w h e a t , r i c e a n d c o � o n . W h i l e agriculture share in India's economy has con�nued to decline due to the high growth rates of the industrial and services sectors, the agriculture sector's importance in India's economic and social well‐being goes well beyond this indicator.

3. What is the approach of RBL Bank towards Agr icu l ture and Rura l Banking?

Agribusiness credit is the most cri�cal non‐land input in agriculture and has played a pivotal role in increasing agricultural produc�on in India.

Although Agri‐credit has its own statutory significance and generates a strong goodwill with the Regulator and Government, at RBL Bank we approach

this as a huge business “opportunity” rather than an “obliga�on”. We believe Rural & Agriculture business offers huge business poten�al and can generate sustainable economic value to the Bank, farmers, customers and our other stakeholders. At RBL Bank we have iden�fied Agribusiness and Rural banking as one of the key areas for growth, and a driver for expansion of branch networks in Semi‐Urban and Rural India.

The Bank adopts a five‐pronged approach to increase its relevance in Rural India

· Focus on direct farmer banking requirements,

· Develop innova�ve products and market specific schemes for farmers and rural customers,

· Tap the en�re value chainincluding farmers, ar�sans and other players in the different catchments,

· I n c r e a s e o u t r e a c h t h ro u g h expansion of ins�tu�onal network and use of technology and

· Work with farmers and corporates t o fo rg e b o t h fo r w a rd a n d backward linkages .

4. How have you modelled your Agriculture business?

The Agribusiness for our bank has been modelled to address the different target markets in a focussed manner across the value chain.

AEFIRBL Bank Rural & Agriculture Banking Sector aims to be big in

· Retail Agribusiness:The Bank is leveraging on the strength of its exis�ng branch network and also some new branchesthat are being rolled out, to expand and grow its Agribusiness por�olio. Besides historical branches, which have rich Agribusiness poten�al, many new branches have been iden�fied which offer large Agribusiness poten�al in Retail and Commodity business. Banks offer Smart ATM‐cum‐Debit Card on Rupay Pla�orm to its farmers under “Kisan Credit Card” Scheme. Retail Agribusiness has become one of the major thrust areas for banks.

· Wholesale Agribusiness & Value Chain Finance: The wholesale Agribusiness and Value Chain Finance forms an important segment of Agribusiness which addresses the key corporate and ins�tu�onal rela�onships in agricultural sector to enable bulk farmer funding deals. It works with Sugar factories, Dairies, Planta�on companies , Agro‐process ing industries, Agri‐input companies etc.

· Commodity Finance and Pledge Finance: Commodity Finance and Pledge Finance to farmers against hypotheca�on of agricultural produce (including warehouse receipts) has been iden�fied as another segment for growth of A g r i b u s i n e s s . R B L B a n k h a s already launched Warehouse Receipt F inancing program, wherein credit facili�es are being extended to farmers, processors and grader sorters, primarily based on the underlying asset i.e. Agri‐commodi�es. Our Bank offers commodity finance for both perishable and non‐perishable commodi�es.

R B L Bank has been offering products to its farmers and rural customers for Renewable Energy, Micro‐Irriga�on, Hi‐tech cul�va�on, Agri‐warehousing and Agri‐marke�ng Infrastructure. Ourbank is working with various innova�ve projects namely, M o d e l v i l l a g e s , B e � e r W a t e r Management ini�a�ves, Improved C a � l e M a n a g e m e n t p r o g r a m , Livelihood enhancement projects and Farm mechaniza�on.

5. What is key to deliver agriculture credit to farmers?

The flow of credit to agriculture has i n c r e a s e d s i g n i fi c a n t l y i n t h e recen�mes. This year the ins�tu�onal agriculture target is more than Rs. 8 Lakh Crores.Although the amount of agricultural credit has increased substan�ally, during the last few years, the access to formal sources of credit has been inadequate for small and marginal farmers (who cons�tute for more than 80% of the farming community). Banks have to come up with innova�ve products to address the credit and banking needs of smaller farmers. Our bank has a special focus on small and marginal farmers and has developed innova�ve products which cater to the needs of these smaller segments. We are using our Bank's outreach program and technology frameworks to address the banking needs of smaller customers. It has been our endeavor to offer a comprehensive suite of short term & long term financial products to famers inorder to give them a wholesome, affordable and efficient banking experience.

6. What kind of framework is needed to increase banking outreach to the last mile in the country?

The Financial Inclusion ini�a�ves of the Government and Regulator to provide access to banking services at all villages through Branches, Ultra Small Branches, Mobile Banking, ATM or Kiosks or Business Correspondents at an affordable cost is going to change the banking landscape in India. Banks are gearing up by upgrading the technology infrastructure to include core banking solu�ons, mobile and internet banking, Mobile ATMs, Smart Cards with the objec�ve to reduce the cost of transac�ons, improve customer

Manoj RawatHead, Agribusiness Group, RBL Bank

Manoj.rawat@rblbank.comh�p://www.rblbank.com

Manoj Rawat is Head of Agribusiness at RBL Bank Limited (Formerly : The Ratnakar Bank Limited) and has more than 20 years e x p e r i e n c e i n R u r a l , Agriculture and Financial Inclusion.

experience and build a compe��ve edge for themselves.

However, the sustainable success of the “F inancia l Inc lus ion and Deepening” ini�a�ves will be achieved by adop�ng an approach wherein all s t a k e h o l d e r s w o r k o n t h i s “Commercially viable proposi�on & Value Crea�on opportunity” rather than only a Government or Regulator driven mandate.

For banks the challenges do remain but the willingness to move from an “o b l i ga t o r y ” t o “o p p o r t u n i t y ” approach, from “Class” to “Mass” banking and from “Exclusive” to “Inclusive” strategy will remain key. Bankswill need to work “High Volume” b u s i n e s s w i t h t e c h n o l o g y a n d innova�onasthe key drivers. The various ini�a�ves of the policy makers, regulator and banks in this direc�on isgoing to transform Rural India and pave the way to achieve “true & las�ng financial inclusion” and would also contribute to crea�ngsustainable food and nutri�onal security for the country. At RBL Bank we see “Rural” as the next big opportunityas wework towards becoming one of theadmired leaders in this segment.

AEFI RBL Bank Rural & Agriculture Banking Sector aims to be big in

House Hold Economy of a Farmer in India

The word farmer in the �tle of this ar�cle refers to the one who actually cul�vates the land and not the one who

merely owns the land. They may be small or marginal farmers, or those who are tenant cul�vators or share croppers or agricultural labourers. In short the term refers to all those who are depending solely on farming for the lively hood of their families. This paper on the “House Hold Economy of a farmer in India”, tries to highlight some of the hidden areas of economic situa�on of the farmers in India.

THE WORD FARMER REFERS TO THE ONE WHO ACTUALLY CULTIVATES THE LAND AND NOT TO THE ONES WHO MERELY OWNS THE LAND.

There are two aspects in human life: existence and development: existence refers to physical existence;

whereas development means both physical and mental. In the case of animals existence and development refers to physical and not mental but in the case of human beings existence and development means both physical and mental. For a human being existence without development is meaningless and development without existence is impossible. Every human has a right to adequate and sufficient means and materials for his physical and mental development. Hence the first thing we need to keep in mind is that both existence and development cost (cost of living) the individual or family and second thing is that the cost goes on increasing year a�er year if not month a�er month.

FOR A HUMAN BEING, EXISTENCE WITHOUT

DEVELOPMENT IS MEANINGLESS AND DEVELOPMENT WITHOUT

EXISTENCE IS IMPOSSIBLE. EVERY HUMAN HAS A RIGHT TO

ADEQUATE AND SUFFICIENT MEANS AND MATERIALS FOR HIS

PHYSICAL AND MENTAL DEVELOPMENT.

Broadly the costs of living in any f a m i l y a r e t w o t y p e s : f o o d expenditures and non‐ food expendi‐tures. For the food consump�on the most accepted standard for India is what is recommended by the Indian C o u n c i l o f M e d i c a l R e s e a r c h (ICMR,1981) in order to ensure supply of enough energy, proteins, 15 vitamins and 24 minerals.

Es�ma�on of food expenditure

Given below is a list of food items (Table 1) that make up the balanced diet and the minimum average amount per person per day in a family of six (we shall term it as “per family‐head”) which is

AEFIHouse Hold Economy of a Farmer in India

2015 MAY ISSUE-5 AGRICULTURE WORLD 1312 ISSUE-5 MAY 2015AGRICULTURE WORLD www.krishijagran.comwww.krishijagran.com

· Retail Agribusiness:The Bank is leveraging on the strength of its exis�ng branch network and also some new branchesthat are being rolled out, to expand and grow its Agribusiness por�olio. Besides historical branches, which have rich Agribusiness poten�al, many new branches have been iden�fied which offer large Agribusiness poten�al in Retail and Commodity business. Banks offer Smart ATM‐cum‐Debit Card on Rupay Pla�orm to its farmers under “Kisan Credit Card” Scheme. Retail Agribusiness has become one of the major thrust areas for banks.

· Wholesale Agribusiness & Value Chain Finance: The wholesale Agribusiness and Value Chain Finance forms an important segment of Agribusiness which addresses the key corporate and ins�tu�onal rela�onships in agricultural sector to enable bulk farmer funding deals. It works with Sugar factories, Dairies, Planta�on companies , Agro‐process ing industries, Agri‐input companies etc.

· Commodity Finance and Pledge Finance: Commodity Finance and Pledge Finance to farmers against hypotheca�on of agricultural produce (including warehouse receipts) has been iden�fied as another segment for growth of A g r i b u s i n e s s . R B L B a n k h a s already launched Warehouse Receipt F inancing program, wherein credit facili�es are being extended to farmers, processors and grader sorters, primarily based on the underlying asset i.e. Agri‐commodi�es. Our Bank offers commodity finance for both perishable and non‐perishable commodi�es.

R B L Bank has been offering products to its farmers and rural customers for Renewable Energy, Micro‐Irriga�on, Hi‐tech cul�va�on, Agri‐warehousing and Agri‐marke�ng Infrastructure. Ourbank is working with various innova�ve projects namely, M o d e l v i l l a g e s , B e � e r W a t e r Management ini�a�ves, Improved C a � l e M a n a g e m e n t p r o g r a m , Livelihood enhancement projects and Farm mechaniza�on.

5. What is key to deliver agriculture credit to farmers?

The flow of credit to agriculture has i n c r e a s e d s i g n i fi c a n t l y i n t h e recen�mes. This year the ins�tu�onal agriculture target is more than Rs. 8 Lakh Crores.Although the amount of agricultural credit has increased substan�ally, during the last few years, the access to formal sources of credit has been inadequate for small and marginal farmers (who cons�tute for more than 80% of the farming community). Banks have to come up with innova�ve products to address the credit and banking needs of smaller farmers. Our bank has a special focus on small and marginal farmers and has developed innova�ve products which cater to the needs of these smaller segments. We are using our Bank's outreach program and technology frameworks to address the banking needs of smaller customers. It has been our endeavor to offer a comprehensive suite of short term & long term financial products to famers inorder to give them a wholesome, affordable and efficient banking experience.

6. What kind of framework is needed to increase banking outreach to the last mile in the country?

The Financial Inclusion ini�a�ves of the Government and Regulator to provide access to banking services at all villages through Branches, Ultra Small Branches, Mobile Banking, ATM or Kiosks or Business Correspondents at an affordable cost is going to change the banking landscape in India. Banks are gearing up by upgrading the technology infrastructure to include core banking solu�ons, mobile and internet banking, Mobile ATMs, Smart Cards with the objec�ve to reduce the cost of transac�ons, improve customer

Manoj RawatHead, Agribusiness Group, RBL Bank

Manoj.rawat@rblbank.comh�p://www.rblbank.com

Manoj Rawat is Head of Agribusiness at RBL Bank Limited (Formerly : The Ratnakar Bank Limited) and has more than 20 years e x p e r i e n c e i n R u r a l , Agriculture and Financial Inclusion.

experience and build a compe��ve edge for themselves.

However, the sustainable success of the “F inancia l Inc lus ion and Deepening” ini�a�ves will be achieved by adop�ng an approach wherein all s t a k e h o l d e r s w o r k o n t h i s “Commercially viable proposi�on & Value Crea�on opportunity” rather than only a Government or Regulator driven mandate.

For banks the challenges do remain but the willingness to move from an “o b l i ga t o r y ” t o “o p p o r t u n i t y ” approach, from “Class” to “Mass” banking and from “Exclusive” to “Inclusive” strategy will remain key. Bankswill need to work “High Volume” b u s i n e s s w i t h t e c h n o l o g y a n d innova�onasthe key drivers. The various ini�a�ves of the policy makers, regulator and banks in this direc�on isgoing to transform Rural India and pave the way to achieve “true & las�ng financial inclusion” and would also contribute to crea�ngsustainable food and nutri�onal security for the country. At RBL Bank we see “Rural” as the next big opportunityas wework towards becoming one of theadmired leaders in this segment.

AEFI RBL Bank Rural & Agriculture Banking Sector aims to be big in

House Hold Economy of a Farmer in India

The word farmer in the �tle of this ar�cle refers to the one who actually cul�vates the land and not the one who

merely owns the land. They may be small or marginal farmers, or those who are tenant cul�vators or share croppers or agricultural labourers. In short the term refers to all those who are depending solely on farming for the lively hood of their families. This paper on the “House Hold Economy of a farmer in India”, tries to highlight some of the hidden areas of economic situa�on of the farmers in India.

THE WORD FARMER REFERS TO THE ONE WHO ACTUALLY CULTIVATES THE LAND AND NOT TO THE ONES WHO MERELY OWNS THE LAND.

There are two aspects in human life: existence and development: existence refers to physical existence;

whereas development means both physical and mental. In the case of animals existence and development refers to physical and not mental but in the case of human beings existence and development means both physical and mental. For a human being existence without development is meaningless and development without existence is impossible. Every human has a right to adequate and sufficient means and materials for his physical and mental development. Hence the first thing we need to keep in mind is that both existence and development cost (cost of living) the individual or family and second thing is that the cost goes on increasing year a�er year if not month a�er month.

FOR A HUMAN BEING, EXISTENCE WITHOUT

DEVELOPMENT IS MEANINGLESS AND DEVELOPMENT WITHOUT

EXISTENCE IS IMPOSSIBLE. EVERY HUMAN HAS A RIGHT TO

ADEQUATE AND SUFFICIENT MEANS AND MATERIALS FOR HIS

PHYSICAL AND MENTAL DEVELOPMENT.

Broadly the costs of living in any f a m i l y a r e t w o t y p e s : f o o d expenditures and non‐ food expendi‐tures. For the food consump�on the most accepted standard for India is what is recommended by the Indian C o u n c i l o f M e d i c a l R e s e a r c h (ICMR,1981) in order to ensure supply of enough energy, proteins, 15 vitamins and 24 minerals.

Es�ma�on of food expenditure

Given below is a list of food items (Table 1) that make up the balanced diet and the minimum average amount per person per day in a family of six (we shall term it as “per family‐head”) which is

AEFIHouse Hold Economy of a Farmer in India

2015 MAY ISSUE-5 AGRICULTURE WORLD 1312 ISSUE-5 MAY 2015AGRICULTURE WORLD www.krishijagran.comwww.krishijagran.com

1. Cereals and millets (grains) consumed in any form.........................500 gm/per day

2. All types of pulses/meat/fish.......................................................... 50 gm/per day

3. Oil and fat .......................................................................................50 gm/per day

4. All types of leafy vegetables.............................................................50 gm/per day

5. All types of root vegetables..............................................................50 gm/per day

6. All types immature pod and fruit vegetables....................................50 gm/per day

7. All types of fruits..............................................................................50 gm/per day

8. Mixed salad with tomato, onion, carrot, cucumber etc....................50 gm/per day

9. Mixed herbal chatney with ginger, garlic, mint, coriander etc..........50 gm/per day

10. Milk and milk products.......................................................................200 ml/a cup

11. Egg.................................................................................................half to one/day

12. Tea/coffee ......................................................................................2 to 3 cups/day

13. Salt, Spices and condiments..........................................................as per need/taste

Table 1 List of food items for a balanced diet and their amount per day per family‐head

Table 2 Estimation of the cost of food per day per family-head and for a family of six members

Sl No Food items gm/per day Price* Rs Per Kg Cost per day

1 Cereals and millets (grains) consumed in any form 500 40 20.00

2 All types of pulses/meat/fish 50 150 7.50

3 Oil and fat 50 90 4.50

4 Sugar 50 35 1.75

5 Types of leafy vegetables 50 15 0.75

6 Types of root vegetables 50 30 1.50

7 Types of immature pod & fruit vegetables 50 60 3.00

8 Types of fruits 50 80 4.00

9 Salad of mixed items 50 40 2.00

10 Herbal chatney of mixed items 50 15 0.75

11 Milk and milk products 50 35 1.75

12 Egg Half egg 6/No 3.00

13 Coffee/Tea 2‐3 cups 5/cup 10.00

14 Spices/salt As per need 100 5.00

Total cost per day per family‐head 65.50

Total cost of food per family per day 393.00

Total cost per month per family‐head 1965.00

Total cost per year per family‐head 23,907.50

Total cost per year per family of six members 1,43,445.00

Addi�onal cost for food for guests, fes�val days etc. 6555.00

Total es�mated food expenditure per year/family 1,50,000.00

AEFI House Hold Economy of a Farmer in India AEFIHouse Hold Economy of a Farmer in India

2015 MAY ISSUE-5 AGRICULTURE WORLD 1514 ISSUE-5 MAY 2015AGRICULTURE WORLD www.krishijagran.comwww.krishijagran.com

numbers are rounded up to make up for t h e u n avo i d a b l e l o s s e s d u r i n g transport, storage, prepara�on for cooking, cooking, serving and ea�ng, that happens between the market to the mouth of the consumer. Mul�ply the amounts of each item with the number of persons in the family or in a group ea�ng on a specific day to determine the minimum amount of cooked food items required for them. The amount 50 gm and its mul�ples are easy to calculate the amount of family provisions to be bought for a day or for a week or a month. And also it helps to make es�mates for daily cooking. But adjustment in serving the food is done according to the age, sex and work.

CONSUMPTION OF THE CATEGORIES OF FOOD ITEMS

the average family number in India. This list is the summery of items given in table 8.1 recommended for hard w o r k i n g v e g e t a r i a n s a n d 8 . 2 , recommenda�ons for hard working non‐vegetarians, on page 53 of the same book (ICMR 1981).

NB. Usually people fulfil their requirement of food items from 1 to 3 and 10 to 13; but they do not realize the importance of items of Nos 4 to 9 as they are the main source of all the 15 vitamins and about 24 minerals which play a major role in all the thousands of hormonal and enzyma�c ac�ons and reac�ons in the human body.

FOR ALL PRACTICAL PURPOSE 50 GM IS TAKEN AS WHAT COULD BE

HELD IN AN OPEN PALM. EACH ONE'S HAND IS THE NATURAL

MEASURING DEVICE FOR SERVING FOOD FOR ONESELF; FOR A CHILD HIS HAND IS THE MEASUREMENT

SO TOO FOR AN ADULT. 50 GM TAKEN AS ONE'S HANDFUL IS THE

MINIMUM RECOMMENDED AMOUNT PER DAY PER HEAD.

These average amount (per family‐head) given in gram/ml were arrived by t o t a l l i n g a n d c o m b i n i n g t h e recommended individual requirements given in tables 8.1 and 8.2 in the above men�oned book as per age, sex and work and by dividing the sum by the number of persons in a hard working family of six. As you can see all the

GIVEN IN TABLE 1 IS ESSENTIAL FOR PROVIDING PROPER

1. Cereals and millets (grains) consumed in any form.........................500 gm/per day

2. All types of pulses/meat/fish.......................................................... 50 gm/per day

3. Oil and fat .......................................................................................50 gm/per day

4. All types of leafy vegetables.............................................................50 gm/per day

5. All types of root vegetables..............................................................50 gm/per day

6. All types immature pod and fruit vegetables....................................50 gm/per day

7. All types of fruits..............................................................................50 gm/per day

8. Mixed salad with tomato, onion, carrot, cucumber etc....................50 gm/per day

9. Mixed herbal chatney with ginger, garlic, mint, coriander etc..........50 gm/per day

10. Milk and milk products.......................................................................200 ml/a cup

11. Egg.................................................................................................half to one/day

12. Tea/coffee ......................................................................................2 to 3 cups/day

13. Salt, Spices and condiments..........................................................as per need/taste

Table 1 List of food items for a balanced diet and their amount per day per family‐head

p ro p e r n u t r i � o n e s p e c i a l l y vitamins and minerals. India ranks first the world in the incidence of Tuberculosis and mal‐nutri�onal diseases.

THERE ARE MANY STUDIES SHOWING THAT 80‐90 PER CENT OF THE SICKNESS IN INDIA ARE DUE TO

LACK OF PROPER NUTRITION ESPECIALLY VITAMINS AND

MINERALS. INDIA RANKS FIRST THE WORLD IN THE INCIDENCE OF

TUBERCULOSIS.

Es�ma�on of non‐food expenditureTo have a life with dignity a person

should have sufficient monthly/yearly income to meet about 34 non‐food items like housing, clothes, educa�on, electricity, water, travel, furniture and household items etc. Table 3 is the list of non‐food items required for a family to have a decent human living. The list is not exhaus�ve.

Table 3 has listed all the necessary items and nothing of luxury items like vehicles, washing machine, air coolers, etc. are included in the list. Hence the

life envisaged is with minimum things. Surveys show that an average ra�o

of 1: 4.725 between the expenditures on food and non‐food items remain more or less constant �ll the income matches with expenditures as is clear from table 4 which is prepared on the basis of the income‐expenditure curves shown in Fig 1 (Samuelson Paul A. & Nordhuas William, D., 1989). Both Table 4 and Fig 1 shows clearly four cri�cal stages of cumula�ve expenditure as the income increases �ll it becomes equal to the expenditure details. Above this stage the income‐expenditure curve refers to people who have saving or surplus.

Both in the Fig 1 and Table 4 we can clearly iden�fy four stages �ll the cumula�ve expenditure becomes equal to the income (threshold stage) in the fourth column. Till that point the ra�o b e t w e e n f o o d a n d n o n ‐ f o o d expenditure works out to be between 1 : 4.3 to 1: 4.9: with an average of 1 : 4.725. This ra�o changes significantly (1: 6 and above) once the income

recommended amount of food items he will spend double the amount in the medicine and treatment. There are many studies showing that 80‐90 per cent of the sickness in India are due to lack of

Table 2 Estimation of the cost of food per day per family-head and for a family of six members

Sl No Food items gm/per day Price* Rs Per Kg Cost per day

1 Cereals and millets (grains) consumed in any form 500 40 20.00

2 All types of pulses/meat/fish 50 150 7.50

3 Oil and fat 50 90 4.50

4 Sugar 50 35 1.75

5 Types of leafy vegetables 50 15 0.75

6 Types of root vegetables 50 30 1.50

7 Types of immature pod & fruit vegetables 50 60 3.00

8 Types of fruits 50 80 4.00

9 Salad of mixed items 50 40 2.00

10 Herbal chatney of mixed items 50 15 0.75

11 Milk and milk products 50 35 1.75

12 Egg Half egg 6/No 3.00

13 Coffee/Tea 2‐3 cups 5/cup 10.00

14 Spices/salt As per need 100 5.00

Total cost per day per family‐head 65.50

Total cost of food per family per day 393.00

Total cost per month per family‐head 1965.00

Total cost per year per family‐head 23,907.50

Total cost per year per family of six members 1,43,445.00

Addi�onal cost for food for guests, fes�val days etc. 6555.00

Total es�mated food expenditure per year/family 1,50,000.00

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increases beyond the expenditure and the family will be in the saving mode showing that the expenditure on non‐food items increases significantly.Both Table 3 and Fig 1 show that as the income increases the pa�ern of consump�on expenditures of various items, grouped under food and beverages, clothing,

housing, medical‐educa�on‐recrea�on, increase in such a way that the average ra�o is maintained around 1: 4.725 between food and non‐food expenditures. When his income is more than the expenditure then the ra�o will go up above 1:6 to any amount and also he begins the saving and investment. Under normal condi�ons the food requirement of family of constant number, occupa�on and life style will be constant. (Table 2 & Table 3). Hence at any given �me it is easy to es�mate the actual cost of the minimum food requirement for a family on the basis of the prevalent price of food items in the market. Then using the ra�o 1:4.725 we can es�mate the required cost of non‐food items a family requires for life with dignity. The sum of these two will be the bare

Table 3. List of non‐food items

Sl.No Items

1 Educa�on, fees, books etc.

2 Clothes, winter and summer clothes

3 House repair/rent

4 Toilet ar�cles

5 Recrea�on

6 Bedding material, beddings, sheets, pillow,

7 Transport, travel, local and outsta�on

8 Fes�vals, celebra�ons

9 Light, electricity charges, repair

10 Water, drinking & other use

11 Taxes, house, property, animals etc.

12 Footwear for everyone in the family

13 Shaving/ hair cu�ng, cosmetcs

14 Implements, instruments

15 Washing, cleaning

16 Utensils for kitchen

17 Cigre�e/ bidi

18 Dona�on, contribu�ons

19 Watch/ radio/ tv repair

20 Ornaments, decora�ons

21 Guests, rela�ves, visitors

22 Marriage, a�ending, gi�s,

23 Medicine, for all family members

24 Furniture, shelves, storages facili�es, boxes

25 Newspapers/ magazines,

26 Postage, currier services etc.

27 Insurance

28 Interest on loan

29 Saving, inbvestments

30 Deprecia�on

31 Drinks including so� drinks

32 Mobile phones, recharges

33 Other expenses

34 Repair and maintenance other than house

Table 4 Cri�cal stage wise cumula�ve values of consump�on(Rs)

Items of consump�on expenditures Cri�cal stages of family consump�on (Rs)

1 2 3 4 5

Food & drink +Clothes +Housing+Transport+ Medicine.+Edun+Recrea�on 14642 17143 22322 25358 48215

Food & drink + Clothes +Housing +Transport 11428 12857 17322 18572 32858

Food & drink + Clothes +Housing 8571 9285 12322 13215 22858

Food & drink + Clothes 3571 4285 5179 5715 9643

Food & drink 2500 3214 3750 4286 6786

Income 5000 7500 15179 25358 60000

Food : Non‐food Exp. Ra�o 1: 4.8 1: 4.3 1: 4.9 1: 4.9 1: 6.1

Income-Consumption-Saving Relationships

Stages* 1---to---2-----to----3--to---4-----above-------------------------------

Critical Stages in Expenditure Curves

EXPENDITURES FOR CONSUMPTION AT DIFFERENTINCOME LEVELS, 1989

60,000

55,000

50,000

45,000

40,000

35,000

30,000

25,000

20,000

15,000

10,000

5,000

0

Medical Care,EducationRecreation, etc.

Saying

Automobiles andTransportation

Clothing

All Housing

Food and Beverages

20,000 40,000 60,000Income Level (after taxes)

Cur ves f rom Bot tom a re :

Saving & Investment Begins with 4th Stage

1. Stages 1 to 2 = Bare Necessity2. Stages 2 to 3 = Convenient Necessity3. Stages 3 to 4 = Comfort4. Stages above 4 = Luxury

1. Food and beverages2. Clothing related3. Housing related4. Transport & automobiles5. Medical, Education & recreation

Fig - 1

Dolle

rs E

xpen

ded

minimum amount required for a family to have a decent and dignified living though without any security against any extra‐ordinary expenditures or any saving or investment.

Both in the Fig 1 and Table 4 we can clearly iden�fy four stages �ll the cumula�ve expenditure becomes equal to the income (threshold stage). Till that point the ra�o between food and non‐food expenditure works out to be between 1 : 4.3 to 1: 4.9: with an average of 1 : 4.725. This ra�o changes significantly (1: 6 and above) once the income increases beyond the normal household expenditures and the family is in the saving mode showing that the expenditure on non‐food items increases significantly.

We have already es�mated the total expenditure requirement for various essen�al food items as 1,50,000 per year for a family of six as given table 2. In table 5 es�ma�ons of the total expenditure on non‐food items based on the ra�o of 1: 4.725 and also the total of es�mated household expenditure for one year.

The minimum required amount of net income for a family of five to six as per the rates of food items given in table 2 will be around 8,60,000 per year per family. If the rates go up the total income requirement will also go up. The prices fluctuate during the year but from year to year there is a steady increase in the price rate of consumer

things.Which farmer as defined above has 8,60,000 rupees net income per year. In general no small or marginal farmer or share cropper or tenant farmer or an agriculture labourer can earn 8,60,000 rupees at the current price level of food and other household things. Hence he borrows money from wherever it is available but will never be able to pay back. He is born is debt, live in debt and die in debt. No amount of government incen�ve or subsidy or loan will help him to get out of his debt trap.Kink in the thinking

In a farmer's labour the �me and human e n e r g y a r e n o t a d e q u a t e l y remunerated as compared to an industrial or nonfarm employee. A farmer works in the sun, rain, day and night, in cold and heat spending 3000 to 4000 Kilo calories per day with least amount of nourishment while his counterpart in an office spend much less human energy with much be�er nutri�onal status. Secondly the �me factor to produce all the agricultural products is not remunerated. Thirdly

the farmer's products are perishable. In this respect a comparison between a worker in the organized sector and a farmer in unorganized sector as given in table 6 will be useful to understand the farmer's economic situa�on.

Concluding remark

The conclusion is obvious. From the above analysis how pathe�c the life of a real farmer in our country is very clear in spite of the much lauded government l o a n a n d s u b s i d y p ro g ra m m e s co r p o rate s o c i a l re s p o n s i b i l i t y schemes. They are just like bandaging a sep�c wound or oiling a cancerous organ in a body. No doubt there are many inherent economic and social bo�lenecks. Economically the Indian farmer is s�ll in a slavery condi�on though socially they are not considered as a slave. In almost all the cases he does not even get the wages of his own and his family labour. But as per our es�ma�on everyday a six member family requires food items for about 393 (400) rupees per day. How many farmers have a net income of Rs 400 daily from his farm only to meet the food expenses. But if we add the expenditures of both food and non‐food items the same family requires on an average 2356 rupees per day; for any farmer it is an impossible dream. Well the point is how far behind are the Indian farmers economically; and yet no one gave a thought to the problem from the human and existen�al point of view, nor from the developmental point of view.

EVERY FARMER INDIA IS BORN IN DEBT, LIVE IN DEBT AND DIE IN

DEBT; ALREADY MORE THAN TWO AND HALF LAKHS HAVE

COMMITTED SUICIDE IN DEBT.

Table 5 Es�ma�on of total annual expenditure

Sl. No Items of expenditures Amount

1 Es�mated food expenditure per year 1,50,000.00

2 The ra�o between food and non‐food expenditures 1 : 4.725

3 The es�mated non‐food items' expenditure 7,08,750.00

4 Total es�mated annual expenditure (1+3) 8,58,750.00

5 Including the con�ngency the total annual 8,60,000.00 expenditure can be es�mated to be

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increases beyond the expenditure and the family will be in the saving mode showing that the expenditure on non‐food items increases significantly.Both Table 3 and Fig 1 show that as the income increases the pa�ern of consump�on expenditures of various items, grouped under food and beverages, clothing,

housing, medical‐educa�on‐recrea�on, increase in such a way that the average ra�o is maintained around 1: 4.725 between food and non‐food expenditures. When his income is more than the expenditure then the ra�o will go up above 1:6 to any amount and also he begins the saving and investment. Under normal condi�ons the food requirement of family of constant number, occupa�on and life style will be constant. (Table 2 & Table 3). Hence at any given �me it is easy to es�mate the actual cost of the minimum food requirement for a family on the basis of the prevalent price of food items in the market. Then using the ra�o 1:4.725 we can es�mate the required cost of non‐food items a family requires for life with dignity. The sum of these two will be the bare

Table 3. List of non‐food items

Sl.No Items

1 Educa�on, fees, books etc.

2 Clothes, winter and summer clothes

3 House repair/rent

4 Toilet ar�cles

5 Recrea�on

6 Bedding material, beddings, sheets, pillow,

7 Transport, travel, local and outsta�on

8 Fes�vals, celebra�ons

9 Light, electricity charges, repair

10 Water, drinking & other use

11 Taxes, house, property, animals etc.

12 Footwear for everyone in the family

13 Shaving/ hair cu�ng, cosmetcs

14 Implements, instruments

15 Washing, cleaning

16 Utensils for kitchen

17 Cigre�e/ bidi

18 Dona�on, contribu�ons

19 Watch/ radio/ tv repair

20 Ornaments, decora�ons

21 Guests, rela�ves, visitors

22 Marriage, a�ending, gi�s,

23 Medicine, for all family members

24 Furniture, shelves, storages facili�es, boxes

25 Newspapers/ magazines,

26 Postage, currier services etc.

27 Insurance

28 Interest on loan

29 Saving, inbvestments

30 Deprecia�on

31 Drinks including so� drinks

32 Mobile phones, recharges

33 Other expenses

34 Repair and maintenance other than house

Table 4 Cri�cal stage wise cumula�ve values of consump�on(Rs)

Items of consump�on expenditures Cri�cal stages of family consump�on (Rs)

1 2 3 4 5

Food & drink +Clothes +Housing+Transport+ Medicine.+Edun+Recrea�on 14642 17143 22322 25358 48215

Food & drink + Clothes +Housing +Transport 11428 12857 17322 18572 32858

Food & drink + Clothes +Housing 8571 9285 12322 13215 22858

Food & drink + Clothes 3571 4285 5179 5715 9643

Food & drink 2500 3214 3750 4286 6786

Income 5000 7500 15179 25358 60000

Food : Non‐food Exp. Ra�o 1: 4.8 1: 4.3 1: 4.9 1: 4.9 1: 6.1

Income-Consumption-Saving Relationships

Stages* 1---to---2-----to----3--to---4-----above-------------------------------

Critical Stages in Expenditure Curves

EXPENDITURES FOR CONSUMPTION AT DIFFERENTINCOME LEVELS, 1989

60,000

55,000

50,000

45,000

40,000

35,000

30,000

25,000

20,000

15,000

10,000

5,000

0

Medical Care,EducationRecreation, etc.

Saying

Automobiles andTransportation

Clothing

All Housing

Food and Beverages

20,000 40,000 60,000Income Level (after taxes)

Cur ves f rom Bot tom a re :

Saving & Investment Begins with 4th Stage

1. Stages 1 to 2 = Bare Necessity2. Stages 2 to 3 = Convenient Necessity3. Stages 3 to 4 = Comfort4. Stages above 4 = Luxury

1. Food and beverages2. Clothing related3. Housing related4. Transport & automobiles5. Medical, Education & recreation

Fig - 1

Dolle

rs E

xpen

ded

minimum amount required for a family to have a decent and dignified living though without any security against any extra‐ordinary expenditures or any saving or investment.

Both in the Fig 1 and Table 4 we can clearly iden�fy four stages �ll the cumula�ve expenditure becomes equal to the income (threshold stage). Till that point the ra�o between food and non‐food expenditure works out to be between 1 : 4.3 to 1: 4.9: with an average of 1 : 4.725. This ra�o changes significantly (1: 6 and above) once the income increases beyond the normal household expenditures and the family is in the saving mode showing that the expenditure on non‐food items increases significantly.

We have already es�mated the total expenditure requirement for various essen�al food items as 1,50,000 per year for a family of six as given table 2. In table 5 es�ma�ons of the total expenditure on non‐food items based on the ra�o of 1: 4.725 and also the total of es�mated household expenditure for one year.

The minimum required amount of net income for a family of five to six as per the rates of food items given in table 2 will be around 8,60,000 per year per family. If the rates go up the total income requirement will also go up. The prices fluctuate during the year but from year to year there is a steady increase in the price rate of consumer

things.Which farmer as defined above has 8,60,000 rupees net income per year. In general no small or marginal farmer or share cropper or tenant farmer or an agriculture labourer can earn 8,60,000 rupees at the current price level of food and other household things. Hence he borrows money from wherever it is available but will never be able to pay back. He is born is debt, live in debt and die in debt. No amount of government incen�ve or subsidy or loan will help him to get out of his debt trap.Kink in the thinking

In a farmer's labour the �me and human e n e r g y a r e n o t a d e q u a t e l y remunerated as compared to an industrial or nonfarm employee. A farmer works in the sun, rain, day and night, in cold and heat spending 3000 to 4000 Kilo calories per day with least amount of nourishment while his counterpart in an office spend much less human energy with much be�er nutri�onal status. Secondly the �me factor to produce all the agricultural products is not remunerated. Thirdly

the farmer's products are perishable. In this respect a comparison between a worker in the organized sector and a farmer in unorganized sector as given in table 6 will be useful to understand the farmer's economic situa�on.

Concluding remark

The conclusion is obvious. From the above analysis how pathe�c the life of a real farmer in our country is very clear in spite of the much lauded government l o a n a n d s u b s i d y p ro g ra m m e s co r p o rate s o c i a l re s p o n s i b i l i t y schemes. They are just like bandaging a sep�c wound or oiling a cancerous organ in a body. No doubt there are many inherent economic and social bo�lenecks. Economically the Indian farmer is s�ll in a slavery condi�on though socially they are not considered as a slave. In almost all the cases he does not even get the wages of his own and his family labour. But as per our es�ma�on everyday a six member family requires food items for about 393 (400) rupees per day. How many farmers have a net income of Rs 400 daily from his farm only to meet the food expenses. But if we add the expenditures of both food and non‐food items the same family requires on an average 2356 rupees per day; for any farmer it is an impossible dream. Well the point is how far behind are the Indian farmers economically; and yet no one gave a thought to the problem from the human and existen�al point of view, nor from the developmental point of view.

EVERY FARMER INDIA IS BORN IN DEBT, LIVE IN DEBT AND DIE IN

DEBT; ALREADY MORE THAN TWO AND HALF LAKHS HAVE

COMMITTED SUICIDE IN DEBT.

Table 5 Es�ma�on of total annual expenditure

Sl. No Items of expenditures Amount

1 Es�mated food expenditure per year 1,50,000.00

2 The ra�o between food and non‐food expenditures 1 : 4.725

3 The es�mated non‐food items' expenditure 7,08,750.00

4 Total es�mated annual expenditure (1+3) 8,58,750.00

5 Including the con�ngency the total annual 8,60,000.00 expenditure can be es�mated to be

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Table 6: Comparison of remunera�ons for a worker in the organized sector and farmer

Sl.No Worker in organized sector Farmer

1 The number of working hours is fixed Working hours is not fixed. He may have to work any no. of hours

2 The working �me is fixed. Work during day or night No fixed �me. He has to work any �me of the day and night

3 He is paid for the over�me No remunera�on for his over�me.

4 He is provided with coffee and snacks No food is given during tea/coffee �me. He has to and subsided canteen facili�es arrange himself

5 He is provided with medical allowances No medical allowances

6 He is given leaves with pay. One month No leave or pay leave and casual leave

7 He gets medical and maternity leave He has no medical or maternity leave

8 He is given child allowances No child allowances

9 Other allowances for fes�vals No fes�val allowances

10 Loan facili�es linked with employment is given easily No loan facility is provided easily

11 Housing allowances given No housing allowances

12 TA and DA are provided No TA, DA provided

13 O�en consumer store's facili�es are provided Not available. Ra�on shops provide only grain, sugar, oil and kerosene

14 Gets pension or P.F No pension or P.F is assured though promises are made by the government

15 Re�res at the age of 58 Re�res only by death

16 He gets organiza�onal support No organisa�onal support

17 Compensa�on is given in case of accident or death No compensa�on of any sort

18 He gets various facili�es such as road, transport, Facili�es are rare or meagre electricity, water, schooling etc.

19 High social status Very low social status

20 Higher security in life Low security, high risk

21 Be�er working condi�ons Very poor and hard working condi�ons

22 Be�er remunera�ons Poor or no remunera�on

23 Be�er educa�onal facili�es for children Poor or no educa�onal facili�es for children

24 Be�er organized among themselves Poor or no organiza�on

25 Higher economic and social status in life Poor economic and social status in life

26 The price of the products is decided by The price of agricultural items are fixed by the middle men. the manufacturer

27 They are not exploited easily The farmer is cheated and exploited easily

28 They have greater control of their situa�ons The farmer has least control of his situa�ons

29 The increase in return is propor�onate to As the investment increases the marginal return the increase in investment decreases �ll it reaches zero

30 Investors are ready to invest in organized sector The investors are reluctant to invest in the farm sector

31 The workers in organized sectors are The farmers are the “chaprasis” in the system “babus” in the system

32 They are the masters in the system They are the slaves in the system

Dr. K. T. Chandy He has authored 676 booklets on various topics

coming under environment management and agri‐related subjects.

He is on the Editorial Board of Krishi Jagran Media Group.)

Breaking the myths surrounding

the anti GMO Propaganda In India the deep engagement of the public sector and national level private enterprises and the wide recognition of the technology at the farmer end has triggered the global ire of anti-GM lobby groups, triggering deployment of unprecedented global resources in India to the tune of several million Dollars and Euros to oppose this effort.

“

“

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Table 6: Comparison of remunera�ons for a worker in the organized sector and farmer

Sl.No Worker in organized sector Farmer

1 The number of working hours is fixed Working hours is not fixed. He may have to work any no. of hours

2 The working �me is fixed. Work during day or night No fixed �me. He has to work any �me of the day and night

3 He is paid for the over�me No remunera�on for his over�me.

4 He is provided with coffee and snacks No food is given during tea/coffee �me. He has to and subsided canteen facili�es arrange himself

5 He is provided with medical allowances No medical allowances

6 He is given leaves with pay. One month No leave or pay leave and casual leave

7 He gets medical and maternity leave He has no medical or maternity leave

8 He is given child allowances No child allowances

9 Other allowances for fes�vals No fes�val allowances

10 Loan facili�es linked with employment is given easily No loan facility is provided easily

11 Housing allowances given No housing allowances

12 TA and DA are provided No TA, DA provided

13 O�en consumer store's facili�es are provided Not available. Ra�on shops provide only grain, sugar, oil and kerosene

14 Gets pension or P.F No pension or P.F is assured though promises are made by the government

15 Re�res at the age of 58 Re�res only by death

16 He gets organiza�onal support No organisa�onal support

17 Compensa�on is given in case of accident or death No compensa�on of any sort

18 He gets various facili�es such as road, transport, Facili�es are rare or meagre electricity, water, schooling etc.

19 High social status Very low social status

20 Higher security in life Low security, high risk

21 Be�er working condi�ons Very poor and hard working condi�ons

22 Be�er remunera�ons Poor or no remunera�on

23 Be�er educa�onal facili�es for children Poor or no educa�onal facili�es for children

24 Be�er organized among themselves Poor or no organiza�on

25 Higher economic and social status in life Poor economic and social status in life

26 The price of the products is decided by The price of agricultural items are fixed by the middle men. the manufacturer

27 They are not exploited easily The farmer is cheated and exploited easily

28 They have greater control of their situa�ons The farmer has least control of his situa�ons

29 The increase in return is propor�onate to As the investment increases the marginal return the increase in investment decreases �ll it reaches zero

30 Investors are ready to invest in organized sector The investors are reluctant to invest in the farm sector

31 The workers in organized sectors are The farmers are the “chaprasis” in the system “babus” in the system

32 They are the masters in the system They are the slaves in the system

Dr. K. T. Chandy He has authored 676 booklets on various topics

coming under environment management and agri‐related subjects.

He is on the Editorial Board of Krishi Jagran Media Group.)

Breaking the myths surrounding

the anti GMO PropagandaThe GMO Issue

Over the two decades it is proven that GM technologies have contributed to increased food produc�vity and environment improvement due to lower deployment of toxic pes�cides. However, tradi�onally an�‐GM ac�vists have protested against the G M technology on the following grounds.

1) I t i s a n e l i t e m u l � n a � o n a l d o m i n a � o n w i t h p ro t e c t e d product ownership meant to exploit small farmers and deny technology at affordable price to small farmers.

2) It is US dominated and is thrust on other countries.

3) Its safety and long term implicat‐ions are unknown over the next 50 years and beyond.

4) It is detrimental to biodiversity and finally.

5) While the world can be fed fully with organic food (no ma�er what it takes to grow them all) why go for any technology applica�on at all, proven or unproven?

India is the first country in the world to de‐mys�fy all of these myths and prove to the world that:‐

a) GM crop development is not the sole domain of 4 or 5 mul�na�onal companies,

b) GM crops bring immense economic

contribu�on at the bo�om‐of‐the pyramid – the marginal farmer, who grows a variety of neglected crops,

c) The technology is not the limita�on for any one to pursue the research and product delivery goals – The technology is accessible and

d) The intellectual property is not an impediment for breaking the dominance of top 4 mul�na�onals, but a facilitator for small ventures and public research organiza�ons

In India the deep engagement of the public sector and national level private enterprises and the wide recognition of the technology at the farmer end has triggered the global ire of anti-GM lobby groups, triggering deployment of unprecedented global resources in India to the tune of several million Dollars and Euros to oppose this effort.

“

“

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to legi�mately secure technologies and deliver trait specific varietal seeds to small farmers who can grow and save their own seeds in their own right.

In India the deep engagement of the public sector and na�onal level private enterprises and the wide recogni�on of the technology at the farmer end has triggered the global ire of an�‐GM lobby groups, triggering deployment of unprecedented global resources in India to the tune of several million Dollars and Euros to oppose this effort. If Indian success is allowed it is detrimental to the ac�vism across the world and hence the epicenter of this ac�vism rests in India currently.

There are number of elements that have contributed to Indian public and private organiza�ons breaking these myths.

Myth No. 1Elite mul�na�onal dominance:

World over, four or five interna�onal seed companies have focused on corn and oil seeds for the trait improvement due to large acreage of farming and the resultant economy of scale in adop�on of GM technologies by large farmers focused on these crops. The economy of scale provides the large corpora�on the ability to recover high investment cost in research, valida�on, and post release monitoring of the product. However, these large corpora�ons have not focused on crops of regional re leva n c e fo r m o st d eve lo p in g countries. In India the crops under development are predominantly focused on grain crops, vegetables, len�ls, millets, groundnut, mustard and other edible crops and these are the domain of interest to mul�na�onal companies. Indian developers have licensed genes from interna�onal sources or in some cases cloned their own genes with patent filing and have pursued integra�on of these genes in crops of regional interest. This has provided opportunity during 2004 to 2009 more than 20 crops to be developed and tested by public and private enterprises in wide variety of crops. The focus of crop improvement related to a wide basket of crops such as

Brinjal, okra, tomato, rice, potato, co�on, chillies ( pepper), banana, papaya, Chickpea, Pigeon pea and Groundnut. Indian produc�vity in most of these crops has stagnated over the years due to inability of the gene�c resources to overcome chronic pests and pathogens. Indian produc�vity for most of these crops is at about half or one third of the best produc�vity when benchmarked to countries having highest produc�vity. Most chemical solu�ons have been less effec�ve in mi�ga�ng pests and pathogens in these crops. Appl ica�on of b io logica l solu�ons externally to the plant has only very limited success (confined to few thousand acres forming a frac�on of one percent of the total acreage in the country) but the success has not been uniform due to impact of the v a r y i n g e n v i r o n m e n t o n t h e performance of the organism. The alternate NPM technologies and organic farming prac�ces have not yielded currently even frac�on of 1% of total Urinal produced in the country or anywhere in the world. The molecular solu�ons have been explored with the help of plant and soil borne bacterial genes that have proven effec�veness in mi�ga�ng these pests and pathogens. In other developing countries such as Brazil, Indonesia and Philippines too, independent researchers in the public research and na�onal companies have developed products in their focus crops such as sugarcane, beans and potato. In Indonesia, the sugarcane crop has been developed by in‐country researchers and has been recently approved for

plant mul�plica�on. The Late Blight Resistant Potato is in advanced stage of evalua�on and will be approved for release to farmers in Indonesia within the next few months. Similarly, in Brazil Brazilian regulators have approved the transgenic bean. None of these had any interest of mul�na�onal companies. In Philippines several varie�es and publicly developed Bt Brinjal hybrids are under review by the regulatory authori�es for release to the farmers. Similar efforts are undertaken in Vietnam as well for crops of local interest. India was in the forefront of this effort un�l 2009 and has taught the model for Asian and South American countries to follow. The dismantling of the regulatory mechanism in India subsequent to the imposi�on of moratorium by the then Environment Minister has put India behind by a d e c a d e i n p u r s u i n g t h e s e

Foremost GMO Myths E l i t e m u l t i n a t i o n a l

dominance GM crops contribution to

t h e r e s o u r c e p o o r, marginal farmers

Technology and human c o m p e t e n c y i s t h e limitation to develop crops by national companies

AEFIBreaking the myths surrounding the anti GMO Propaganda

developments. While Central Potato Research Ins�tute (CPRI ) was the first in the world to advance the Late Blight Resistant Potato with gene transfer from another publ ic univers ity, University of Wisconsin, they were denied field valida�on of their crop during the last 5 years. Now the Indonesian research organiza�on, that started the effort several years a�er C P R I , h a s t a k e n t h e l e a d t o commercialize this product far ahead of India. Even if field evalua�ons are permi�ed now, it will take another three to four years for this crop to be introduced in India in Indian potato varie�es. Indian farmers will now look for the Indonesian seed producers to supply them Late Blight disease resistant seeds, as at �mes the late blight can be having devasta�ng effect on the potato crop. The gene here is the potato gene itself, isolated from a na�ve potato.

Myth No.2 GM crops contribu�on to the

resource poor, marginal farmers: When the technology is adopted in public varie�es, the technology has no barrier for it to spread among the marginal farmers. In case of Bt Brinjal, in Bangladesh the Bangladesh Agriculture Research Ins�tute developed 9 varie�es of Brinjal and out of the 9 varie�es 4 are already approved for cul�va�on by farmers. The farmers cul�va�ng them have the right to save the seeds and replant them for successive seasons. Addi�onally, the public research organiza�on provides seeds to the farmers growing brinjal and there by ensuring complete affordability for the technology by all small farmers. When I

interacted with one of the Bangladeshi farmer, he indicated that Indian farmers from West Bengal keep calling them to secure seeds from them. His answer to the West Bengal farmer was to buy fruits from them and not the seeds. It reflects how the Indian farmer is denied the right to secure the varie�es d e v e l o p e d b y P u b l i c r e s e a r c h ins�tu�ons in India which they could have sown and saved in their own right.

The Bt Brinjal development effort, authorized by Government of India in 2004 as a collabora�ve project, has provided for the first �me three na�onal publ ic sector research ins�tu�ons – Indian Ins�tute of Vegetable Research, University of Agriculture Sciences, Dharwad and Tamilnadu Agriculture University the legi�mate right to deploy the Bt gene licensed without royalty charge by M a h y c o a s a m e m b e r o f t h i s government formed consor�um, in 16 varie�es that are publicly bred by these research ins�tu�ons. These were varie�es adopted by farmers in different regions and were most suscep�ble to fruit and shoot borer. Since these varie�es were not resistant to pests, farmers were shelving them and moving over to other crops. It was but natural that these varie�es needed access to the gene that could provide them the resistance property to fruit and shoot borer pest so that the resource poor farmers who cannot afford the costly hybrids could con�nue

AEFI Breaking the myths surrounding the anti GMO Propaganda

to grow them. Three public research ins�tu�ons in three regions of the country developed these products and got them ready for delivery to resource poor farmers who can secure these seeds and save them for replan�ng. Releasing transgenic seed varie�es Public ins�tu�ons is unheard of in western world. The varie�es of Bt Brinjal developed by public ins�tu�ons are developed by Indian ins�tu�ons for Indian farmers to grow them and save their seeds in their own right. In the Western world, the only other public good development was the virus resistant papaya the Cornell University developed for Hawai ian papaya growers and today this technology is widely adopted by papaya growers in USA. The Bt Brinjal collabora�ve project w a s p r e d o m i n a n t l y f u n d e d b y Government of India extensively and this funding was approved by a Joint working group in which the Ministry of Environment was also a member.

When Mahyco's product was evaluated and proposed for approval to GEAC. The varie�es of Tamilnadu Agriculture University and the Dharwad University were also proposed for approval and release. However, the moratorium withheld the access to these seeds by resource poor farmers in the region. Over the last 5 years, the three public sector ins�tu�ons have totally disassociated themselves in pursuing these brinjal varie�es due to the moratorium. Even if these varie�es

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to legi�mately secure technologies and deliver trait specific varietal seeds to small farmers who can grow and save their own seeds in their own right.

In India the deep engagement of the public sector and na�onal level private enterprises and the wide recogni�on of the technology at the farmer end has triggered the global ire of an�‐GM lobby groups, triggering deployment of unprecedented global resources in India to the tune of several million Dollars and Euros to oppose this effort. If Indian success is allowed it is detrimental to the ac�vism across the world and hence the epicenter of this ac�vism rests in India currently.

There are number of elements that have contributed to Indian public and private organiza�ons breaking these myths.

Myth No. 1Elite mul�na�onal dominance:

World over, four or five interna�onal seed companies have focused on corn and oil seeds for the trait improvement due to large acreage of farming and the resultant economy of scale in adop�on of GM technologies by large farmers focused on these crops. The economy of scale provides the large corpora�on the ability to recover high investment cost in research, valida�on, and post release monitoring of the product. However, these large corpora�ons have not focused on crops of regional re leva n c e fo r m o st d eve lo p in g countries. In India the crops under development are predominantly focused on grain crops, vegetables, len�ls, millets, groundnut, mustard and other edible crops and these are the domain of interest to mul�na�onal companies. Indian developers have licensed genes from interna�onal sources or in some cases cloned their own genes with patent filing and have pursued integra�on of these genes in crops of regional interest. This has provided opportunity during 2004 to 2009 more than 20 crops to be developed and tested by public and private enterprises in wide variety of crops. The focus of crop improvement related to a wide basket of crops such as

Brinjal, okra, tomato, rice, potato, co�on, chillies ( pepper), banana, papaya, Chickpea, Pigeon pea and Groundnut. Indian produc�vity in most of these crops has stagnated over the years due to inability of the gene�c resources to overcome chronic pests and pathogens. Indian produc�vity for most of these crops is at about half or one third of the best produc�vity when benchmarked to countries having highest produc�vity. Most chemical solu�ons have been less effec�ve in mi�ga�ng pests and pathogens in these crops. Appl ica�on of b io logica l solu�ons externally to the plant has only very limited success (confined to few thousand acres forming a frac�on of one percent of the total acreage in the country) but the success has not been uniform due to impact of the v a r y i n g e n v i r o n m e n t o n t h e performance of the organism. The alternate NPM technologies and organic farming prac�ces have not yielded currently even frac�on of 1% of total Urinal produced in the country or anywhere in the world. The molecular solu�ons have been explored with the help of plant and soil borne bacterial genes that have proven effec�veness in mi�ga�ng these pests and pathogens. In other developing countries such as Brazil, Indonesia and Philippines too, independent researchers in the public research and na�onal companies have developed products in their focus crops such as sugarcane, beans and potato. In Indonesia, the sugarcane crop has been developed by in‐country researchers and has been recently approved for

plant mul�plica�on. The Late Blight Resistant Potato is in advanced stage of evalua�on and will be approved for release to farmers in Indonesia within the next few months. Similarly, in Brazil Brazilian regulators have approved the transgenic bean. None of these had any interest of mul�na�onal companies. In Philippines several varie�es and publicly developed Bt Brinjal hybrids are under review by the regulatory authori�es for release to the farmers. Similar efforts are undertaken in Vietnam as well for crops of local interest. India was in the forefront of this effort un�l 2009 and has taught the model for Asian and South American countries to follow. The dismantling of the regulatory mechanism in India subsequent to the imposi�on of moratorium by the then Environment Minister has put India behind by a d e c a d e i n p u r s u i n g t h e s e

Foremost GMO Myths E l i t e m u l t i n a t i o n a l

dominance GM crops contribution to

t h e r e s o u r c e p o o r, marginal farmers

Technology and human c o m p e t e n c y i s t h e limitation to develop crops by national companies

AEFIBreaking the myths surrounding the anti GMO Propaganda

developments. While Central Potato Research Ins�tute (CPRI ) was the first in the world to advance the Late Blight Resistant Potato with gene transfer from another publ ic univers ity, University of Wisconsin, they were denied field valida�on of their crop during the last 5 years. Now the Indonesian research organiza�on, that started the effort several years a�er C P R I , h a s t a k e n t h e l e a d t o commercialize this product far ahead of India. Even if field evalua�ons are permi�ed now, it will take another three to four years for this crop to be introduced in India in Indian potato varie�es. Indian farmers will now look for the Indonesian seed producers to supply them Late Blight disease resistant seeds, as at �mes the late blight can be having devasta�ng effect on the potato crop. The gene here is the potato gene itself, isolated from a na�ve potato.

Myth No.2 GM crops contribu�on to the

resource poor, marginal farmers: When the technology is adopted in public varie�es, the technology has no barrier for it to spread among the marginal farmers. In case of Bt Brinjal, in Bangladesh the Bangladesh Agriculture Research Ins�tute developed 9 varie�es of Brinjal and out of the 9 varie�es 4 are already approved for cul�va�on by farmers. The farmers cul�va�ng them have the right to save the seeds and replant them for successive seasons. Addi�onally, the public research organiza�on provides seeds to the farmers growing brinjal and there by ensuring complete affordability for the technology by all small farmers. When I

interacted with one of the Bangladeshi farmer, he indicated that Indian farmers from West Bengal keep calling them to secure seeds from them. His answer to the West Bengal farmer was to buy fruits from them and not the seeds. It reflects how the Indian farmer is denied the right to secure the varie�es d e v e l o p e d b y P u b l i c r e s e a r c h ins�tu�ons in India which they could have sown and saved in their own right.

The Bt Brinjal development effort, authorized by Government of India in 2004 as a collabora�ve project, has provided for the first �me three na�onal publ ic sector research ins�tu�ons – Indian Ins�tute of Vegetable Research, University of Agriculture Sciences, Dharwad and Tamilnadu Agriculture University the legi�mate right to deploy the Bt gene licensed without royalty charge by M a h y c o a s a m e m b e r o f t h i s government formed consor�um, in 16 varie�es that are publicly bred by these research ins�tu�ons. These were varie�es adopted by farmers in different regions and were most suscep�ble to fruit and shoot borer. Since these varie�es were not resistant to pests, farmers were shelving them and moving over to other crops. It was but natural that these varie�es needed access to the gene that could provide them the resistance property to fruit and shoot borer pest so that the resource poor farmers who cannot afford the costly hybrids could con�nue

AEFI Breaking the myths surrounding the anti GMO Propaganda

to grow them. Three public research ins�tu�ons in three regions of the country developed these products and got them ready for delivery to resource poor farmers who can secure these seeds and save them for replan�ng. Releasing transgenic seed varie�es Public ins�tu�ons is unheard of in western world. The varie�es of Bt Brinjal developed by public ins�tu�ons are developed by Indian ins�tu�ons for Indian farmers to grow them and save their seeds in their own right. In the Western world, the only other public good development was the virus resistant papaya the Cornell University developed for Hawai ian papaya growers and today this technology is widely adopted by papaya growers in USA. The Bt Brinjal collabora�ve project w a s p r e d o m i n a n t l y f u n d e d b y Government of India extensively and this funding was approved by a Joint working group in which the Ministry of Environment was also a member.

When Mahyco's product was evaluated and proposed for approval to GEAC. The varie�es of Tamilnadu Agriculture University and the Dharwad University were also proposed for approval and release. However, the moratorium withheld the access to these seeds by resource poor farmers in the region. Over the last 5 years, the three public sector ins�tu�ons have totally disassociated themselves in pursuing these brinjal varie�es due to the moratorium. Even if these varie�es

2015 MAY ISSUE-5 AGRICULTURE WORLD 2120 ISSUE-5 MAY 2015AGRICULTURE WORLD www.krishijagran.comwww.krishijagran.com

Mr. K.Vijayaraghavan Chairman, Sathguru & Regional Coordinator,

IP CALS, Cornell University

HALAL EXPORTS MAY HELP RUSSIA'S AGRARIAN SECTOR TO GROW

What does one have to do in order to

receive a halal cer�ficate in Russia?

Receiving a halal cer�ficate is not a

complicated process. First of all the

establishment has to follow all the

exis�ng Russian and interna�onal

sanitary norms. Then, during the

process of cer�fica�on we train them in

the halal rules and requirements,

ca r r y i n g o u t a f u l l a n a l ys i s o f

produc�on.

In the beginning our center's

collaborators thoroughly study the

technological process, as well as the raw

materials and the ingredients. Special

a � e n � o n m u s t b e g i v e n t o

establishments that produce meat

products: The en�re process of

slaughtering the animal or bird has to be

carried out in a humane manner and in

accordance with Islamic law. Experts

from the Halal Center make sure the

c o l l a b o ra t o r s fo l l o w a l l t h e s e

regula�ons.

How is the process of obtaining a

cer�ficate in Russia different from

other countries?

T h e p ro c e s s o f o bta i n i n g a

cer�ficate in Russia is not that different

from in other countries. We have

established �es with leading world

bodies and organiza�ons, studied the

experience of countries such as

Malaysia, Turkey, the UAE, Saudi Arabia,

Indonesia and others. Currently, there

are plans to create a single, unified halal

standard.

Many of the enterprises we have

cer�fied have successfully entered

foreign markets in the Islamic world. As

of today more than 150 producers and

companies offering halal services have

received a cer�ficate from our center. It

should be noted that the idea of halal

The halal market is currently experiencing a worldwide boom, and Russia is no exception. RIR spoke with Aidar Gazizov, general director of the International Center for Halal Standardization and Certification of the Russian Mufti Council, about the developments of this relatively young industry in Russia

“

“

AEFIHalal Exports May Help Russia's Agrarian Sector To GrowAEFI Breaking the myths surrounding the anti GMO Propaganda

2015 MAY ISSUE-5 AGRICULTURE WORLD 2322 ISSUE-5 MAY 2015AGRICULTURE WORLD www.krishijagran.comwww.krishijagran.com

p a r t n e rs fo r s u p p o r � n g p u b l i c researchers in adop�ng technology including serving of non‐bailable arrest w a r r a n t o n t h e U n i v e r s i t y administra�on engaged in the bt brinjal development by invoking the draconian Na�onal Biodiversity Act based on a pseudo compla int f rom a non‐g o v e r n m e n t o r g a n i z a � o n . T h e subsequent Minister made all of them criminals by declaring them as criminals in the Parliament without an iota of enquiry. The two ministers will go in the history as only ones to prosecute scien�sts for improving crops and delivering them for public good, with legi�mate approval of their own ministry. The NGO collected several million rupees by propaga�ng this info in Al Zaheera and other interna�onal TV channels to fuel the legal proceedings and to fund their efforts. The whole ma�er is sub‐judice over the last three years, but the nega�ve propaga�on goes unabated.

Myth No. 3: Technology and human compet‐

ency is the limita�on to develop crops by na�onal companies:

If only mul�na�onals have the genes in their possession and the competency to develop GM crops, how did Indian companies and even the Indian public research bodies develop these products? The gene discovery is t h e d o m a i n o f l e a d i n g g l o b a l univers i�es, large mul�na�onal companies and a few smart young co m p a n i e s ( s ta r t‐ u ps ) . S eve ra l candidate genes have been isolated from plant and soil sources that have demonstrated ability to induce traits in c rops . Though there are a few ins�tu�ons engaged in upstream inven�on of gene discovery, the access to these genes are made available to other product developers through licensing of gene�c traits for specific crop trait improvement. The model is akin to the licensing of INTEL chips by INTEL to electronic appliance makers. There are only two or three discoverers of electronic chips in the world. INTEL is largest among them. That does not deter an Apple or a Dell to make most produc�ve computers in the world. Indian smart private sector ventures

have licensed genes from global public r e s e a r c h i n s � t u � o n s , p r i v a t e

Mr. K.Vijayaraghavan Chairman, Sathguru & Regional Coordinator,

IP CALS, Cornell University

have been adopted in 100,000 farmers growing brinjal varie�es it would have benefi�ed marginal farmers to the tune of 600 crores per annum on account of saving on pes�cides and incremental marketable fruits. Currently farmers loose more than half of their produce due to poor marketability on account of fruit and shoot borer infesta�on.

The reality is that the technologies are not dominated by Mul�na�onal companies and the Indian ability to address these crop solu�ons, hitherto not addressed by global mul�na�onals is a true nega�on of the argument of an�‐GM ac�vists. The Indian public sector bringing a product for the benefit of the resource poor farmer, providing the right to the farmer to save their own seed and replant them is a complete contrary to the myth created by the an�‐gm NGOs. In Bangladesh, the public research ins�tu�on has provided a Bt Brinjal variety to the farmer that the farmers are re‐plan�ng in their own right. More than 100 farmers have grown seeds and the produce and the seeds of 4 public varie�es are provided to these farmers. This has never happened in any developed country and Bangladesh could secure the technology due to Indian partner ins�tu�ons, both public and private. The mul�na�onal companies give it a damn to ever market a brinjal variety to resource poor farmer. Only the public ins�tu�ons can do that.

The then Minister for Environment not only denied the introduc�on of the Mahyco hybrids but put the lid on all of the varie�es developed by the public research ins�tu�ons. He did not end with that. He ini�ated through one of the bodies affiliated to his Ministry, prosecu�on proceedings against all the

HALAL EXPORTS MAY HELP RUSSIA'S AGRARIAN SECTOR TO GROW

What does one have to do in order to

receive a halal cer�ficate in Russia?

Receiving a halal cer�ficate is not a

complicated process. First of all the

establishment has to follow all the

exis�ng Russian and interna�onal

sanitary norms. Then, during the

process of cer�fica�on we train them in

the halal rules and requirements,

ca r r y i n g o u t a f u l l a n a l ys i s o f

produc�on.

In the beginning our center's

collaborators thoroughly study the

technological process, as well as the raw

materials and the ingredients. Special

a � e n � o n m u s t b e g i v e n t o

establishments that produce meat

products: The en�re process of

slaughtering the animal or bird has to be

carried out in a humane manner and in

accordance with Islamic law. Experts

from the Halal Center make sure the

c o l l a b o ra t o r s fo l l o w a l l t h e s e

regula�ons.

How is the process of obtaining a

cer�ficate in Russia different from

other countries?

T h e p ro c e s s o f o bta i n i n g a

cer�ficate in Russia is not that different

from in other countries. We have

established �es with leading world

bodies and organiza�ons, studied the

experience of countries such as

Malaysia, Turkey, the UAE, Saudi Arabia,

Indonesia and others. Currently, there

are plans to create a single, unified halal

standard.

Many of the enterprises we have

cer�fied have successfully entered

foreign markets in the Islamic world. As

of today more than 150 producers and

companies offering halal services have

received a cer�ficate from our center. It

should be noted that the idea of halal

The halal market is currently experiencing a worldwide boom, and Russia is no exception. RIR spoke with Aidar Gazizov, general director of the International Center for Halal Standardization and Certification of the Russian Mufti Council, about the developments of this relatively young industry in Russia

“

“

AEFIHalal Exports May Help Russia's Agrarian Sector To GrowAEFI Breaking the myths surrounding the anti GMO Propaganda

2015 MAY ISSUE-5 AGRICULTURE WORLD 2322 ISSUE-5 MAY 2015AGRICULTURE WORLD www.krishijagran.comwww.krishijagran.com

does not only refer to food, but also to

sectors such as tourism, hotel business,

medicine and financial services.

Which halal services are in demand in

the Russian market? In par�cular, how

successful is Islamic banking?

The interna�onal standards of

fi n a n c i a l p r o d u c t s t h a t a r e i n

accordance with Sharia regula�ons

have already been translated into

R u s s i a n . H o w e v e r, o u r e x p e r t

c o m m u n i t y a n d t h e E c o n o m y

Department of the Russian Mu�i

Council must do more to resolve issues

related to the implementa�on of these

products.

Recently we have also seen ac�ve

growth in halal cer�fica�on in the hotel

business. The annual turnover of the

halal tourism market is es�mated at

more than $125 billion and its volume is

12.3 percent of world outbound

The export of quality Russian halal produc�on is opening new opportuni�es for developing Russia's agrarian and industrial sector. Source: TASS

tourism.

One of our goals is to increase the

compe��veness of the Russ ian

producer, to assist domes�c halal

produc�on in entering the interna�onal

market, and here government support

is essen�al.

With which countries have you already

established coopera�on in the halal

industry?

We have good rela�ons with the

Islamic na�ons, including countries

from the Arab world, with whose

embassies and ministries we hold

regular mee�ngs. In July 2014 our

center was accredited to the UAE

Ministry of Environment and Water

Resources, something that will allow

Russian producers to find poten�al

Middle East halal markets.

The export of quality Russian halal

p r o d u c � o n i s o p e n i n g n e w

opportuni�es for developing Russia's

agrarian and industrial sector. We have

already cer�fied the Kazan restaurant

chain in the UAE, which is proof of the

interna�onal status of the Russian

cer�fica�on body. Furthermore, one of

the most important achievements of

our center was the cer�fica�on of halal

cafeterias for the athletes of the 2014

Sochi Winter Olympic Games.

Year Rs. US$

1 700 100

2 1300 200

3 1800 300

SUBSCRIPTION

AidarGazizov, general director of the International Center for Halal Standardization and Certification of the Russian Mufti Council. Source: Press photo

ViktoriaSemioshinaWeb Editor

Rusia and India Report (RIR)

AEFI Halal Exports May Help Russia's Agrarian Sector To Grow

24 ISSUE-5 MAY 2015AGRICULTURE WORLD www.krishijagran.com

IFOAM Appeal On International Mother Earth Day

Soil is one of our natural resources. Without it, life seems to be very difficult. Hence, to save soil from destroying it IFOAM appealed the

whole world to save it on International Mother Earth Day.

Studies have shown that at present we are losing about 30 football fields space of soil on every minute. According to FAO the reasons behind this are erosion, compaction, soil organic matter and nutrient depletion, pollution and other processes caused by unsustainable land management practices. Another

major reason for soil depletion is the use of harmful fertilizers, which was supposed to meet expectations of the farmers to increase the yield.

Organic Agriculture does not use soil-destroying inputs but stimulates soil organics and improves soil fertility. It helps farmers to adapt to climate change by preventing nutrient and water loss with the help of the presence of high soil organic matter content and soil mulching, making soils more resilient to floods, droughts and land degradation processes.

On International Mother Earth

Day, IFOAM has warned that if we do

not start protecting Mother Earth's

soil, it will become impossible to feed a

growing world population; keeps

global warming below 20C or halt the

loss of biodiversity. If we support the

Organic Agriculture then it will

support to save our soil.

“

“

Agriculture NewsAEFI

World's heaviest strawberry

A strawberry grown by a farmer in Japan has won the Guinness World Records title for the heaviest strawberry. It weighs a whopping

250gms with an approximate height of 8cm, length 12cm and circumference 25 to 30 cm. Farmer Koji Nakao from Fukuoka, Japan contacted Guinness World Records when he found an unusually large strawberry during harvest. Mutations can occur for a

variety of reasons, such as when frost damage affects the flowers of the strawberry plant. In this case, multiple berries have fused together to form one single large strawberry. The fruit has broken a long-standing record held for over 30 years. The previous record holding strawberry weighed 231 grams and was grown by G Andersen of Folkstone, Kent, and UK in 1983

The 100- Year Wait is Over

The senate has passed the Bio-security Bill 2014 in over 100 years which marks an incredibly significant milestone in the biggest

overhaul to Australia's bio-security system. It is the largest and most comprehensive piece of legislation on bio-security this country has seen in over 100 years. The bill was strongly supported by the National Farmers' Federation (NFF).

The legislation, Bio-security Bill 2014 will strengthen control measures to manage bio-security risks and control threats posed by 21st century pests and diseases in a modern and flexible way. It will be an important part of deciding the future of Australia's bio-security system. It is still a significant step forward compared to the previous bill and Quarantine Act. The Bio-security Bill will now return to the House of Representatives for final approval.

H.M. Clause new subsidiary in Kenya

HM. Clause, a global vegetable seed company, inaugurated its new farm in Nanyuki, Kenya on April 15 followed by a ribbon-cutting

ceremony attended by senior management from HM. Clause including Deputy CEO, Franck Berger and Global Head of Supply Chain, Ghis Reusken. The French ambassador to Kenya, M. Rémi Maréchaux, who emphasized the importance of seed suppliers to integrate Kenya into their long term plans, was also there. The new subsidiary will be dedicated to indeterminate tomato seed production. HM. CLAUSE has invested €1.3 million developing the site, which includes the construction of three hectares of greenhouses equipped with a rain catchment and storage system for on-farm irrigation. Nanyuki is located on the equator with extremely favorable conditions for horticultural activities in this region represent a new area of growth for the future of HM. Clause.

New Blue tomato has entered the market in Australia. The 40 blue berries tomatoes produced an average three kilos per plant and

most were sold at farmers markets. It also attracts the customers because of its unique taste and look. The blue skin of the tomatoes is because of the antioxidant known as anthocyanin found in dark pigmented fruits and vegetables.

According to the expert of Melbourne University, blue tomatoes also contain anthocyanin and lycopene which are also present in red tomatoes but people also still need to eat a variety of fruits and vegetables to get all the necessary benefits from antioxidants

Blue Tomato: Innovation in Australia

2015 MAY ISSUE-5 AGRICULTURE WORLD 25www.krishijagran.com

does not only refer to food, but also to

sectors such as tourism, hotel business,

medicine and financial services.

Which halal services are in demand in

the Russian market? In par�cular, how

successful is Islamic banking?

The interna�onal standards of

fi n a n c i a l p r o d u c t s t h a t a r e i n

accordance with Sharia regula�ons

have already been translated into

R u s s i a n . H o w e v e r, o u r e x p e r t

c o m m u n i t y a n d t h e E c o n o m y

Department of the Russian Mu�i

Council must do more to resolve issues

related to the implementa�on of these

products.

Recently we have also seen ac�ve

growth in halal cer�fica�on in the hotel

business. The annual turnover of the

halal tourism market is es�mated at

more than $125 billion and its volume is

12.3 percent of world outbound

The export of quality Russian halal produc�on is opening new opportuni�es for developing Russia's agrarian and industrial sector. Source: TASS

tourism.

One of our goals is to increase the

compe��veness of the Russ ian

producer, to assist domes�c halal

produc�on in entering the interna�onal

market, and here government support

is essen�al.

With which countries have you already

established coopera�on in the halal

industry?

We have good rela�ons with the

Islamic na�ons, including countries

from the Arab world, with whose

embassies and ministries we hold

regular mee�ngs. In July 2014 our

center was accredited to the UAE

Ministry of Environment and Water

Resources, something that will allow

Russian producers to find poten�al

Middle East halal markets.

The export of quality Russian halal

p r o d u c � o n i s o p e n i n g n e w

opportuni�es for developing Russia's

agrarian and industrial sector. We have

already cer�fied the Kazan restaurant

chain in the UAE, which is proof of the

interna�onal status of the Russian

cer�fica�on body. Furthermore, one of

the most important achievements of

our center was the cer�fica�on of halal

cafeterias for the athletes of the 2014

Sochi Winter Olympic Games.

Year Rs. US$

1 700 100

2 1300 200

3 1800 300

SUBSCRIPTION

AidarGazizov, general director of the International Center for Halal Standardization and Certification of the Russian Mufti Council. Source: Press photo

ViktoriaSemioshinaWeb Editor

Rusia and India Report (RIR)

AEFI Halal Exports May Help Russia's Agrarian Sector To Grow

24 ISSUE-5 MAY 2015AGRICULTURE WORLD www.krishijagran.com

IFOAM Appeal On International Mother Earth Day

Soil is one of our natural resources. Without it, life seems to be very difficult. Hence, to save soil from destroying it IFOAM appealed the

whole world to save it on International Mother Earth Day.

Studies have shown that at present we are losing about 30 football fields space of soil on every minute. According to FAO the reasons behind this are erosion, compaction, soil organic matter and nutrient depletion, pollution and other processes caused by unsustainable land management practices. Another

major reason for soil depletion is the use of harmful fertilizers, which was supposed to meet expectations of the farmers to increase the yield.

Organic Agriculture does not use soil-destroying inputs but stimulates soil organics and improves soil fertility. It helps farmers to adapt to climate change by preventing nutrient and water loss with the help of the presence of high soil organic matter content and soil mulching, making soils more resilient to floods, droughts and land degradation processes.

On International Mother Earth

Day, IFOAM has warned that if we do

not start protecting Mother Earth's

soil, it will become impossible to feed a

growing world population; keeps

global warming below 20C or halt the

loss of biodiversity. If we support the

Organic Agriculture then it will

support to save our soil.

“

“

Agriculture NewsAEFI

World's heaviest strawberry

A strawberry grown by a farmer in Japan has won the Guinness World Records title for the heaviest strawberry. It weighs a whopping

250gms with an approximate height of 8cm, length 12cm and circumference 25 to 30 cm. Farmer Koji Nakao from Fukuoka, Japan contacted Guinness World Records when he found an unusually large strawberry during harvest. Mutations can occur for a

variety of reasons, such as when frost damage affects the flowers of the strawberry plant. In this case, multiple berries have fused together to form one single large strawberry. The fruit has broken a long-standing record held for over 30 years. The previous record holding strawberry weighed 231 grams and was grown by G Andersen of Folkstone, Kent, and UK in 1983

The 100- Year Wait is Over

The senate has passed the Bio-security Bill 2014 in over 100 years which marks an incredibly significant milestone in the biggest

overhaul to Australia's bio-security system. It is the largest and most comprehensive piece of legislation on bio-security this country has seen in over 100 years. The bill was strongly supported by the National Farmers' Federation (NFF).

The legislation, Bio-security Bill 2014 will strengthen control measures to manage bio-security risks and control threats posed by 21st century pests and diseases in a modern and flexible way. It will be an important part of deciding the future of Australia's bio-security system. It is still a significant step forward compared to the previous bill and Quarantine Act. The Bio-security Bill will now return to the House of Representatives for final approval.

H.M. Clause new subsidiary in Kenya

HM. Clause, a global vegetable seed company, inaugurated its new farm in Nanyuki, Kenya on April 15 followed by a ribbon-cutting

ceremony attended by senior management from HM. Clause including Deputy CEO, Franck Berger and Global Head of Supply Chain, Ghis Reusken. The French ambassador to Kenya, M. Rémi Maréchaux, who emphasized the importance of seed suppliers to integrate Kenya into their long term plans, was also there. The new subsidiary will be dedicated to indeterminate tomato seed production. HM. CLAUSE has invested €1.3 million developing the site, which includes the construction of three hectares of greenhouses equipped with a rain catchment and storage system for on-farm irrigation. Nanyuki is located on the equator with extremely favorable conditions for horticultural activities in this region represent a new area of growth for the future of HM. Clause.

New Blue tomato has entered the market in Australia. The 40 blue berries tomatoes produced an average three kilos per plant and

most were sold at farmers markets. It also attracts the customers because of its unique taste and look. The blue skin of the tomatoes is because of the antioxidant known as anthocyanin found in dark pigmented fruits and vegetables.

According to the expert of Melbourne University, blue tomatoes also contain anthocyanin and lycopene which are also present in red tomatoes but people also still need to eat a variety of fruits and vegetables to get all the necessary benefits from antioxidants

Blue Tomato: Innovation in Australia

2015 MAY ISSUE-5 AGRICULTURE WORLD 25www.krishijagran.com

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