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Wednesday, May 7, 2008

[vinnomot] FOOD CRISIS + Futures Trading + UNIDO DG Interview + Bilateral Trade & Investment‏

NEWS Bulletin from Indian Society For Sustainable Agriculture And Rural Development
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On FOOD CRISIS----
1. Farmers not benefitting from futures trading: Sen
2. Planning Commission calls for public distribution system (PDS) revamp
3. Industry, political parties blast US remarks - Bush, Rice statements on Indian food habits set to rock Parliament today
 
4. Revised WTO text for farm negotiations likely to be delayed
 
5. THE MONDAY INTERVIEW : DG UNIDO, KANDEH YUMKELLA - 'India can help raise incomes in Africa' -  (He also speaks on Food Crisis & Bio-fuel)
 
On BILATERAL TRADE & INVESTMENT---
6. Indian edible oil firms head for Latin America - A consortium of 14 vegetable oil producers to acquire 10,000 hectares of farmland in Uruguay and Paraguay for cultivation
 
7. IPRs to find place in India's FTA with EFTA nations
 
8. Columbia awaits India's green light for emerald exports
9. Australia pledges $20 mn for research with India
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Farmers not benefitting from futures trading: Sen
 
 
ASHOK B SHARMA
Posted online: Monday , May 05, 2008 at 1857 hrs IST
 
New Delhi, May 4 The spectacular growth of commodity futures trading in India has not been able to deliver the perceived benefits of better price discovery, reduce price volatility, and offer hedging and other tools for risk management, according to the chairman of the expert panel, Abhijit Sen.
 
A majority of farmers in India have not benefited from futures trading, their active participation being highly constrained. Though the panel made some suggestions for exchanges reaching out to farmers through aggregators and cooperatives, Sen said, "The likelihood is that very few farmers will themselves be directly able to access the risk management tools developed in future Markets."
 
He alleged, "Exchanges are evidently creating contracts that seek to attract speculators rather than serve the hedging need. A part of the problem is obviously the poor state of infrastructure in spot physical Markets and associated difficulties of contract design and delivery."
 
He said that farmers did not gain much from the preceding inflationary episode despite that fact that nine wheat futures contracts being traded in April 2006, which together indicated an over 20% wheat price increase by the end of the year. There were also reports of large private players entering the market to buy wheat above the minimum support price (MSP). While actual harvest prices remained near MSP, procurement by government agencies in 2006 was only 9.2 million tonne, which was 5.6 million tonne less than that in the previous year, even though there was a slightly larger harvest, Sen said.
 
Sen who is also a member of the Planning Commission, said "Having found no conclusive evidence that futures trading always caused inflation, the panel report has followed the approach of giving such trading the benefit of doubt on the manner of less benign transmissions and to chart out some requirements that would strengthen positive aspects."
 
As a chairman of the expert panel, Sen in his note suggested, "The best course of action would be to identify those commodities where there is a possibility of futures trading affecting expectations that may influence inflation in essential commodities and insulate these from futures. The suspension of futures trading in the four essential commodities (wheat, rice, urad, and tur) should continue and in the case of sugar and vegetable oils, discussions with processors held on how much hedging benefits they currently derive from futures Markets and a decision taken accordingly."
 
Earlier an expert panel headed by Kamal N Kabra was unanimous against futures trading in wheat, non-basmati rice, pulses, tea, coffee, sugar, maize and vanaspati (hydrogenated vegetable oil).
 
Kabra also gave his separate dissenting note of futures trading. The Guru Committee and the UNCTAD-World Bank joint mission report cautioned against futures trading in rice, wheat and sugar which have substantial government intervention....
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Planning Commission calls for public distribution system (PDS) revamp
 
 
ASHOK B SHARMA
Posted online: Tuesday , May 06, 2008 at 0054 hrs IST
 
New Delhi, May 5 The member of the Planning Commission Abhijit Sen said that it was necessary at this stage for the government to strengthen the public distribution system (PDS) in the country and bring under its net a number of essential commodities.
 
He said that at present that the government's policy was to attempt insulation of domestic prices from high world prices by combining a number of different measures including high subsidies, lower tariffs and export restrictions, some of which have been implemented. "Moreover, since inflationary outcomes depend quite critically on the way inflationary expectations build up, there is considerable, although sometimes exaggerated concern with steps designed to show that the government is acting to curb such expectations," he said.
 
Sen who is a noted economist and chairman of the expert panel on futures trading also said that since futures Markets can be a source of domestic price expectations, these were not immune to similar treatment. "In view of the inconclusive findings of our panel on whether futures trading has fuelled increase or volatility in the prices of agricultural commodities, it is not possible to rule this out entirely," he said.
 
He urged for avoiding "disruptive go-stop responses" that neither serve the public purpose nor the growth of Markets. He said that the government should take a clear position regarding essential commodities, particularly foodgrains, where it has a large involvement in physical trade. Both literature on futures trading and empirical facts analysed by the expert panel suggest that there were inherent difficulties if future Markets were introduced for commodities where government was actively involved in trade and influences prices, he said.
 
"Although in the longer run there are possible benefits from combining futures based options with minimum support price (MSP) operations as suggested in our panel report, it is clearly necessary in the immediate inflationary situation that there be a clear statement of the government's intent to maintain and expand the current system of public procurement and PDS in order to ensure remunerative prices to farmers and affordable prices to consumers," Sen said.
 
Sen has favoured continuation of the ban on futures trading in wheat, rice, urad and tur while in the case of futures trading in sugar and edible oils a decision should be taken in consultations with stakeholders.
 
Regarding global price rise situation, Sen quoted the views of farmers and trade associations at the recent Agricultural Forum convened by US Commodities Futures Trading Commission which blamed that speculative surge from long-only funds for the situation. The farmers and trade associations said that the present situation of high prices which should normally have benefited farmers was actually causing concern. It has led to convergence problems, more volatility and a near breakdown of risk management tools that futures markets normally provide. This has increased risks faced by farmers , put farmers, local elevators and other buyers of commodities under pressure of margin requirements and lending limits and has caused problems in  physical markets.
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Industry, political parties blast US remarks
 
Bush, Rice statements on Indian food habits set to rock Parliament today
 
 
Political Bureau
Posted online: Monday , May 05, 2008 at 2245 hrs IST
 
New Delhi, May 4 Both the political class as well as the industry rejected the continuous assertion by the US leadership that the world food crisis was a result of the increased consumption by "Indian middle class." The issue is also set to rock Parliament on Monday.
 
Though the UPA government is yet to come with a formal response on the statements made by US President George Bush and secretary of state Condolizza Rice on the issue, senior Congress leader and defence minister AK Antony termed them as a "cruel joke."
 
The Left brigade and the main Opposition BJP also snubbed the US leadership for its anti-India assertion over the global food crisis. Both demanded that the government should appropriately respond to the statements and make it clear that "it's not India rather the US and other developed countries in the world, who are responsible for the crisis".
 
Similarly, even the India industry disapproved of the US President's comments blaming India for the food crisis, as it said, the current crisis has been created due to several reasons, which included diversion of food to bio fuels, changing weather conditions across the globe leading to droughts and huge agricultural subsidies.
 
Speaking in Thiruvananthapuram, Antony while criticising the US President, said, "It's rather the US policies that have created food crisis in the world. Large-scale conversion of agriculture land for commercial and bio-fuel cultivation purposes in that country have resulted in food shortage at the global level." He said, those who criticise should not set apart agriculture land for other purposes and the countries, including the US, should rectify their mistakes.
 
The BJP and the Left parties not only rejected the assertions made by Bush and Rice but also criticised the government also for its "stoic silence" over the issue.
 
Pointing fingers at Prime Minister Manmohan Singh for his "silence", the BJP said, it would force the government in the Parliament to issue a "strong rebuttal". The party described as "shameful" the Prime Minister's "silence" and demanded that he should stand up for protecting the country's "interest" and "honour".
 
"America has no right to speak about what India eats. India will not accept such interference. The government should take serious note of US president's statement and give a strong reply," senior BJP leader Mukhtar Abbas Naqvi said.
 
The Left parties also demanded that the government should come up with its response on the issue. They are also planning to raise the issue in both the Houses of Parliament. "It is preposterous for anyone to say that global food crisis, including in America, is because of Indians. It is needless to say what the Indians get to eat or what they (Americans) eat. This only shows how he (Bush) has lost his senses," CPI(M) politburo member and West Bengal chief minister Buddhadeb Bhattacharya said. The CPI had also condemned the US views as "baseless."
 
Representing Indian industry Confederation of Indian Industry (CII) in a statement issued on Sunday said, the rising food prices is a matter of concern and needs immediate global response. "We need to build a global platform for dialogue and action to manage the crisis," it added.
 
"The entire issue of food prices needs to be seen in a global perspective and not just seen as an issue emanating from specific countries. There is a need for greater flow of global information on food production & consumption and cuts in food wastage," CII derector general Chandrajit Banerjee said, adding that the industry body is setting up a task force to look into this area....
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Revised WTO text for farm negotiations likely to be delayed
 
 
ASHOK B SHARMA
Posted online: Monday , May 05, 2008 at 2249 hrs IST
 
New Delhi, May 4 The revised WTO draft for negotiations in farm trade may not see the light of the day before May 12, even as the director-general, Pascal Lamy has proposed a mini-ministerial meeting on May 19.
 
According to sources in Geneva many developing countries have suggested to the chairperson of the WTO negotiating committee on agriculture, Crawford Falconer for more time for discussions on contentious issue before a revised draft is prepared. Accordingly, Falconer has scheduled meetings on May 8 and 9 to discuss the latest proposal on sensitive products, market access for tropical and preference products and other issues. He also had convened an informal meeting of the full membership of the agriculture committee on April 30, this year.
 
The 12th session of UNCTAD which concluded in Accra in Ghana in April 25, 2008 expressing concerns over the rising global food prices has called for extending the benefits of Doha Round of negotiations.
 
Some developing countries have already suggested that in the midst of the new emerging situation of skyrocketing global prices, the proposed "horizontal process" of discussion by few trade negotiators would not lead to a desirable outcome. The situation may force the developing countries to commit deep cuts in industrial goods tariff (about 60% to 70% in many cases) and in agricultural goods tariff (about 36% on an average).
 
The situation of global food rise have been primarily caused by the developed world, particularly in Europe and North America, where food crops are being used for producing bio-fuel and where bio-fuel crops have displaced food crops out of cultivation. This has caused a phenomenal rise in food prices and linked it to the volatile prices of fossil fuel. Apart from this the subprime crisis and meltdown in the global equity market have caused commodity prices to soar up.
 
India has, however, committed that there would be no change in its negotiating position for demanding phasing out of farm subsidies and tariffs in the developed world, even though it has reduced its applied tariff (for the time being) on many agriculture products to combat rising prices.
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THE MONDAY INTERVIEW : DG UNIDO, KANDEH YUMKELLA
 
'
India can help raise incomes in Africa'
 
 (He also speaks on Food Crisis & Bio-fuel)
 
 
Posted online: Monday , May 05, 2008 at 1925 hrs IST
 
In his first speech after becoming the director-general of United Nations Industrial Development Organisation (Unido) in December 2005, Kandeh Yumkella reminded his staff that he is from a country listed among the world's poorest—Sierra Leone. He has since been inspiring his team to alleviate poverty, in practice, not in theory. In an exclusive interview to FE's ASHOK B SHARMA and ARUN S , the Unido head, who is also the current UN Energy chairman, spoke about long-term solutions to food shortages and why India needs to look at Africa as a potential market. Excerpts:
 
Q Due to the rising prices, the poor countries find it difficult to import food. Also, there are very few players at the global level in the food trade. What measures do you suggest to deal with this situation?
 
The key strategy is to enhance the capacity of countries to be more involved in the agri-business and agro-industries. We need to strengthen the capacity of developing countries to add more value to what they produce and to reduce post-harvest losses. Also, we need to attract investment into these countries where we know there is arable land and available labour to produce food products for the world.
 
Regarding the oligopoly nature of the global market, we can have more players only when more countries begin to invest in the agro-industries. Those who made the first move, 50 years ago or a century ago, will definitely dominate the Markets. But I am very confident that other players will come in. Take India for instance, where we know that Reliance and other players are doing well in terms of supermarket chains and getting supplies from the rural areas.
 
Other countries need to follow such strategies as well in getting more investments in developing supply chains and in the domestic Markets, and also to enter the regional and global Markets.
 
Q The biofuel programme comes under the agro-industry category, but it has contributed to the price rise. What do you have to say?
 
Biofuels have, no doubt, also contributed to food price inflation. We have to see how we manage the impact of the whole bio-Economy on food and on the environment. In India and other countries, research on jatropha and other feedstock is continuing, and that may not have a direct impact on food production. We feel more support should be given to research and development of these alternative energy sources that would not necessarily have a direct trade-off with food, and also on the second- and third-generation technologies.
 
Q Research says the jatropha cultivation acts as a pest bank, thereby adversely impacting agriculture. Also, there is the issue of diversion of cropland for jatropha cultivation. Besides, jatropha degrades the soil, consumes a lot of water, contributing to environmental problems. What have you to say?
 
I have no doubt in man's ability to use science to deal with these serious agronomic problems. I am sure, the same way we have been able to solve pest problems for normal crops, solutions can also be found for jatropha. I have heard about studies on jatropha's impact on soil conditions. But remember, for similar crops, we have been able to use good crop rotation systems to mitigate the impact on soil.
 
Q You said since India has the technology and Africa the land, there is a synergy both countries can take advantage of. But India is taking a different approach in Africa compared with China, by focusing more on soft skill development and long-term strategies. Do you think India's approach will succeed?
 
For Africa, the partnerships with India and China are great. Having more Markets and investment possibilities is good for Africa. Africa needs huge investments. One big advantage that India has is that, its relationship with Africa goes back to many centuries. So, I feel that India can capitalise on that, look at investment strategies that will also go into agro-industries, even as it pursues minerals.
 
They can look at the agro-business in locations where mining activities are taking place. If you look at East and West Africa, Indian Companies do most of the manufacturing. So, there is a track record and a relationship that India can exploit effectively to help raise incomes in Africa. Africa should not be looked at as a source of minerals and raw materials. India should look at Africa as a potential market. I think it is one of your own scholars who coined the phrase "the fortune is at the bottom of the pyramid". Therefore, Africa could be an important market.
 
Q Unido is keen on South-South cooperation. How do you plan to strengthen it?
 
Some countries, especially India and China, have been able to move from being very poor developing countries to emerging economies by solving the basic development problems that poor countries are facing.
 
I have been promoting South-South cooperation because, based on my own experience, I know for sure that India and China have user-friendly technologies that will be very relevant to poor developing countries in Africa. Poverty for me is real. I go home to a village where there is still no light and water. So, I am looking for practical solutions, wherever they are, including in rich countries and in Asia.
 
Q Do you think the least developed countries and the developing nations will stay together at the WTO's Doha Round talks, considering there are efforts to break their unity?
 
I am optimistic that they will stay together and find solutions. It is in our collective interest that trade helps to lift people out of poverty so that growth is inclusive. Both developed and developing countries would join hands for the success of the Doha round.
 
Q Tell us about Unido's bamboo initiative in India?
 
It is going very well in the north-eastern states. It has a potential for poverty alleviation. It is also an important plan of adaptation to climate change. This is a win-win strategy. If we succeed, we can replicate it in Africa.
 
Q The Indian government has started the Delhi-Mumbai industrial corridor project that will house many special economic zones and witness massive industrial activities. Unido is keen on promoting clean technology in this project from the start to ensure that it will have no adverse impact on the environment. What have you to say?
 
We discussed the concept of a greening industry with the Indian government. Here, we are looking at energy efficiency and pollution management. We are also working with the government on an SME audit to see how we can identify for them areas where we can have better energy conservation and energy management, and improvement in technology for energy efficiency.
 
As India is a major user of energy, we, under the auspices of the UN Energy Commission, are also collaborating with India to host a major global conference on energy efficiency in 2009 or 2010. The government has also shown interest in collaborating with us to do a 'green industry' event in the Philippines this year, looking at chemicals management and its dimension. India's is keen on greening industries and we will work very aggressively with India for more action....
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Indian edible oil firms head for Latin America
 
A consortium of 14 vegetable oil producers to acquire 10,000 hectares of farmland in Uruguay and Paraguay for cultivation
 
 
HUMA SIDDIQUI & ASHOK B SHARMA
Posted online: Saturday , May 03, 2008 at 2213 hrs IST
 
New Delhi, May 2 Indian entrepreneurs will soon become farmers in Latin America. About 14 producers of vegetable oils, including Gujarat Ambuja, KS Oil, Liberty Oil, Pranab Agro and Betul Oil, have formed a consortium to acquire 10,000 hectares of farmland in Uruguay and Paraguay to cultivate soybean, maize and sunflower.
 
"There are 4 to 5 major Indian Companies keen to participate and become either partners or just buy for holdings," said Martin Pablo Leon O'Farrell, a representative from Southern Land Co, Ireland Inc, the company which is leasing and selling land to Indian Companies. The price of farmland is around $3,000 per hectare.
 
"The land is fertile and has enough rainfall round the year. The area has high yield of soybean crop at 3,000 kg per hectare," said BV Mehta, executive director of the Solvent Extractors Association of India (SEA). The Indian Companies have lined up a line of credit of Rs 200 crore from the Exim Bank of India. "We have asked Exim Bank for Rs 200 crore for land purchase and meeting incidental expenses," said Pravin Lunkud, chairman of the consortium.
 
When contacted, an official of the Exim Bank confirmed receiving the request and said the bank was currently examining the feasibility of the project.
 
According to Lunkud, while the farmland will be purchased by individual Companies, the consortium will be an umbrella organisation for resolving issues that these Companies may face in executing the projects.
 
According to the plan drawn up by these Companies, they would cultivate three cash crops, mainly soybean, maize and sunflower as single crop farming will not be economically viable.
 
Responding to a query about tax benefits on investments, Farrell said, "There are tax benefits when you invest in other countries either for land or developments. On top of that, because of the Kyoto Protocol and Bali convention, there are some benefits when you work with preservation and conservation. Then there is the choice of the forest area in the Andes that generates the 35 or 40% of the clear pristine oxygen of the planet. Some governments give back part of your off-shore investments if you are participating or investing in places like these forest areas (cold forest in the Andes, Patagonia region or rain forest in Brazil)."
 
Farrel added there was sizeable business opportunities in the country to participate and invest in areas like energy (bio diesel with jaropha or soybean, sunflower seeds, oil & gas etc.
 
According to Farrell, the Latin American group has an invitation to visit India later this year to sell the concept. "Also, a high-level delegation from the Solvent Extractors Association of India (SEA) and other officials will visit our country later this month," said Farrell. ...
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IPRs to find place in India's FTA with EFTA nations
 
 
ASHOK B SHARMA
Posted online: Tuesday , April 29, 2008 at 1908 hrs IST
 
New Delhi, April 29: A free trade agreement is slated to be finalised between India and the European Free Trade Association (EFTA) by early 2009. The EFTA countries include Iceland, Liechtenstein, Norway and Switzerland.
Apart from trade in industrial and agricultural goods and services, there would be strong focus on implementation of intellectual property rights regime.
 
The EFTA countries and India had earlier set up a joint study group to move towards a broad-based trade and investment agreement. Based on the positive recommendations of the joint study report, it was agreed in January, 2008 to initiate negotiation for a free trade agreement (FTA).
 
Both sides are hopeful that such a FTA would result in a win-win situation. The Switzerland minister of Economy, Doris Leuthard who is leading a business delegation to India said, "Both the economies are different, but we share the common values. This can lead us to a better engagement in trade. In industrial goods India is competitive in some areas, while we are competitive in other areas. In agriculture products we do not grow tropical products which India grows. Our competitiveness is in wines and some processed food. In the services sector, India is a leader in information technology, while we have technological advancements in other areas like construction."
 
The Swiss delegation will be in India till May 3 and visit Mumbai and Bangalore.
 
The Indian Commerce Minister, Kamal Nath said that geographical indication will also find a place in the proposed India-EFTA FTA. "We also need a greater engagement of Swiss small and medium sized industries in our country," he said.
 
The EFTA was founded in 1960 as a means of achieving growth and prosperity among its member states as well as promoting closer economic cooperation between Western Europe. EFTA now enjoys some special preferences from European Union. Bilateral trade between India and EFTA grew by 9.3% to be at $7.4 billion in 2005-06, but while India's exports to EFTA shrank by over 3%, imports from EFTA grew by 11%.
 
India-Switzerland bilateral trade increased from 1.56 billion Swiss Francs in 2004 to 3.26 billion Swiss Franc in 2007, doubling the volume in just three years. Swiss exports to India went up to 2,310 million Swiss Francs in 2007, an increase of 22.4% over the previous year. India's exports to Switzerland stood at only 952 million Swiss Francs. India's exports to Switzerland are lower that the Switzerland's exports to India. It was only in 2007, that India's exports to Switzerland was seen growing at a rate higher than its imports from Switzerland.
 
Major items of Swiss exports to India are machinery, precious stones and metals, jewellery, pharmaceutical products, precision instruments, organic chemicals, fertilizers, dyes, pigments, watches, metals and metal products, plastic and rubber products, soap and washing preparations.
 
India's exports to Switzerland mainly consists organic chemicals, precious stones and metals, jewellery, agricultural products, machinery, metal and metal products, fertilizers, dyes, pigments, footwear, headwear, umbrellas, leather products, precision instruments. In services sector, exports of IT-related services is one of India's major item of exports, which amounted to $ 225 million in 2006-07.
 
Regarding foreign direct investment, Switzerland has been actively involved in India for the past many decades. About 150 Swiss Companies have formed joint ventures or subsidiaries in India.
 
Switzerland is among the top foreign investors in India. As per cumulative FDI inflows data available from April 2000 to December 2007, Switzerland is the 10th largest foreign investor in India. Some of the Switzerland investments are arouted through Mauritius. A Swiss company had invested about $ one billion in India in the recent past and a big part of this was remitted through Mauritius. To name a few notable Swiss Companies present in India are ABB, Nestle and Holcim Majority of the Swiss Companies are present in engineering and industrial equipment, services, chemicals and pharma, textiles, instruments, infotech and auto-components.
 
Indian Companies like Tata Consultancy Services, Infosys, Wipro, Satyam and Polaris have invested in Switzerland. There is also a major flow of Indian tourists to Switzerland....
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Columbia awaits India's green light for emerald exports
 
 
ASHOK B SHARMA
Posted online: Tuesday , April 29, 2008 at 0113 hrs IST
 
New Delhi, Apr 28 Columbia has proposed to export precious emerald stones to India with a view to boost bilateral trade. It has also decided to facilitate direct contact between Indian jewellery manufacturers and emerald producers in Columbia.
 
"There is a similarity in products in India and Columbia. We have to select products for trade which can result in a win-win situation for both sides. We produce one of the world's precious stones – emerald. India is a major exporter of gems and jewelry. It would be better if Indian jewelers source Columbian emerald," said the visiting Columbia minister for trade, industry and tourism, Luis Cuillermo Plata.
 
Textiles and clothing, leather products, processed foods and beverages, paper and paper products, chemicals and petrochemicals, cement, construction, iron and steel products are some of the major items that are traded between India and Columbia.
 
Plata, who is leading a business delegation to India, also met the Union finance minister P Chidambaram and discussed with him the proposal for having bilateral investment treaty between the two countries for avoidance of double taxation.
 
"The bilateral investment treaty would be finalised by 2009 and that on avoidance of double taxation may be ready by 2010 after a few rounds of discussions between the two countries," he said.
 
President of the National Association of Industrialists of Columbia (ANDI) Luis Carlos Villegas, said, "Columbia is abundant with natural resources like coal, gold, silver, ferronickel, sandstones for cement. We would like to invite Indian investors in mining, infrastructure and telecom."
 
The Columbian delegation had an interaction with the Indian industry at an event organised by the Confederation of Indian Industry.
 
Plata said that India investment in Columbia was low and so also was the Columbian investment in India.
 
"We need to encourage investments on both sides. There are stray cases of Columbian investment in India like the waste management project in Chennai." He said that new laws have ensured security for investors and assured long-term fiscal benefits.
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Aus pledges $20 mn for research with India
 
 
ASHOK B SHARMA
Posted online: Wednesday, May 07, 2008 at 2049 hrs IST
 
New Delhi, May 7: The Australian government has pledged $20 million for research work to be undertaken with India for improving the yield of food crops, developing new membranes for water desalination from carbon nanotubes and new materials and methods for separating hydrogen for future pollution-free fuels
 
Australia's Commonwealth Scientific and Industrial Research Organisation (CSIRO) and India's Council for Scientific and Industrial Research (CSIR) signed an agreement on Wednesday to implement the project over a period of five years. "The Australian government has decided to dole out $ 20 million under the Australia-India Strategic Research Fund (AISRF)," said the Australian High Commissioner to India, John McCarthy.
 
In 2001, the two institutions exchanged letters to signal their intent to build increased mutual understanding and awareness and in 2003 CSIR, CSIRO and seven other international research organisations together formed the Global Research Alliance. This alliance aims to facilitate international research cooperation in an effort to address the problems facing the developing world.
The Indian Science and Technology Minister, Kapil Sibal visited Australia in February 2008 to discuss the modalities of further cooperation in research work.
 
The development of new methods in plant breeding that would lead to increased yield in food crops and also benefit farmers in developing countries. The findings pertain to methods for reducing the cost of commercial hybrid seed production and also allowing farmers to propagate their own hybrid seed by a process called apomixes, said the Director-General of CSIR, Samir K Brahmachari.
 
Recent efforts in several laboratories around the world to identify genes controlling apomixis have relied on mutation coupled with genetic screens in model plants such as Arabidopsis thaliana to look for mutants that show aspects of apomixis. The hypothesis here is that apomixis results from altered action of genes that function in the normal pathway of sexual development in plants (i.e. during meiosis, gamete formation, and fertilization). If this is the case then it may be possible to identify mutants whose features show aspects of apomixis. Such approaches have provided valuable clues about processes that may contribute to apomixis, however none of the mutants identified to date have been demonstrated to result in generation of a functional component of apomixis and the formation of viable seed that show aspects of apomixis.
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