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Thursday, May 29, 2008

[vinnomot] WTO can't solve Food Crisis+India-Poland+GMOs+ Farm Debt Waiver+Community Initiatives

NEWS Bulletin from Indian Society For Sustainable Agriculture And Rural Development
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1. Revised WTO draft for farm talks will not solve food crisis
2. 'Lack of proper distribution causes food crisis'
3. Poland wants to improve its trade balance with India
 
On GMOs-----
4. GEAC calls for socio-economic survey of Bt brinjal
5. Cartagena Protocol fails to ensure global liability
6. TNAU ventures into developing transgenic hill banana
 
7. Modified loan waiver scheme stays elusive for most farmers
8. Local initiatives show the way to welfare
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Revised WTO draft for farm talks will not solve food crisis
 
 
ASHOK B SHARMA
Posted online: Wednesday, May 28, 2008 at 2149 hrs IST
 
The revised WTO draft for farm negotiations will not be able to solve the current food crisis, but will rather accentuate it, contrary to the claims made by the director-general, Pascal Lamy.
 
The draft released by the chair of the agriculture negotiating committee, Crawford Falconer on May 19, fell short of addressing the food crisis, both on short-term and long-term basis. Distribution problem is one of the short-term measures that could have been addressed if the draft could have cared to ensure free and fair trade.
 
On the contrary, the draft has attempted to protect the high subsidy and tariff regime in the developed world, not calling for the desirable level of cuts. It doesn't provide for conversion of all the complex and specific tariffs in the developed countries into their ad valorem equivalent, which is necessary for transparency and effecting realistic reduction. Rather the draft has sought to weaken the defence of the developing countries in agriculture in relation to their demand for special products (SPs) and special safeguard mechanism (SSM).
 
Although it has recognised the developing countries' right to self-designate their special products based on food and livelihood security and rural development, it has outlined the minimum limit of 8% of the tariff lines. A maximum limit of 20% of the tariff lines has been proposed in square brackets, implying the need for future negotiations.
 
Capping SPs at a percentage of tariff lines may help some countries that grow few crops to protect their agriculture, but not many tropical countries, which grow multi-crops. Therefore, invocation SSM can be a solution for preventing any possible import surge. But the draft has weakened the SSM for developing countries by saying that it can be triggered only when the prices fall below 30% and that it cannot be invoked for more than three to eight products a year. The conditions for invoking SSM on volume-based triggers is so stringent that it becomes almost ineffective.
 
While the developing countries use of SSM is weakened, the developed countries continue to enjoy their protection through SSG accorded to them.
However, there is a political ambition in both the NAMA and agriculture drafts to divide the unity of the developing countries. The sensitive products of the developed countries have been carefully streamlined to enable developing countries like Brazil, Argentina and Uruguay apart from Australia and New Zealand to export beef, pork, poultry, dairy, rice, sugar, fruits and vegetable to EU, US, Japan, Canada and Switzerland.
 
The NAMA draft has given extra flexibilities to some developing countries like South Africa, Venezuela and countries in the customs unions like SADC and Mercosur, while in respect of the majority of developing countries, it has ignored the Doha mandate of less than full reciprocity in tariff reduction and has linked the tariff reduction coefficients with the flexibilities for developing countries.
If the Doha mandate is to be followed then the issue of flexibilities for developing countries should be treated separately and not in the way the NAMA chair Don Stephenson has put. The developing countries should, therefore, be careful in dealing with the attempts to disrupt their unity.
 
The WTO farm draft has ignored the genuine concerns of the developing countries who are the major producers of food. It has done nothing to address the current food crisis. If the draft is implemented in its present form it would increase the volatility of food prices with no benefits to the farmers in the Third World. It would strengthen the hold of a few multinational food Companies to manipulate global prices. The world's dominant grain traders like Cargill, Archer Daniel Midlands, Bunge have recorded huge profit margins in this period of food crisis. The farm draft has no provision to regulate these dominant food Companies.
 
The WTO has no provision to regulate speculations in the commodity exchanges even though FAO and UNCTAD in their reports have identified high level of financial investment in commodity Markets as a major cause for the increase in volatility in food prices. The meltdown in the global equity market and the subprime crisis in the developed world have caused the investors to shift their investments to commodity Markets.
 
Another plaguing issue is the bio-fuel programme in Europe and North America, which has used food crops for fuel. This contributed to the phenomenal rise in food prices almost linking it to the volatility of fossil fuel price. In many countries, at places, non-food crops for fuel have displaced food crops. The WTO has no provision to regulate this.
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'Lack of proper distribution causes food crisis'
 
 
ASHOK B SHARMA
Posted online: Tuesday , May 27, 2008 at 2358 hrs IST
 
New Delhi, May 26 The present food crisis is due to lack of proper distribution and the trading system impeding free flow of food, according to the vice chairman of International Chamber of Commerce (ICC), Victor Fung.
 
He said that as a short-term measure it was essential to address the problem of distribution and as a long-term strategy the global community should take up measures for raising the productivity of food crops to feed the rising population. "There is also a need to review the bio-fuel programme which uses food crops for fuel and displaces food crops for cultivation of non-food crops for fuel," he said.
 
He also said that the world has to work out strategies for efficient use of energy.
 
Fung who is the chairman, of the Li & Fung group of Companies, which includes major subsidiaries in trading, distribution and retailing, also addressed the industry at a meeting organised by Ficci on Monday He also is the chairman of the Greater Pearl River Delta Business Council, Hong Kong Airport Authority and Hong Kong University Council.
 
Fung also said that China was also facing the challenges of rising prices, growing disparity in incomes, environmental problems and weak infrastructure. "There is a debate in China on how to address these challenges. That the Chinese government cares for its people is evident from its rapid response following the earthquake in Sichuan," he said.
 
He called for a free and fair multilateral trade for addressing the problems of global poverty. He said that bilateral trade and free trade agreements between countries and trading blocks cannot be a substitute for a meaningful free and fair multilateral trade. He said that there was a need to see that anti-dumping measures under WTO do not lead to protectionism.
 
He proposed that Indian Companies can invest in IT sector in China. He said that Chinese production will continue to move offshore in Asian, African and Latin American countries.
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Poland wants to improve its trade balance with India
 
 
ASHOK B SHARMA
Posted online: Thursday , May 29, 2008 at 1649 hrs IST
 
New Delhi, May 27: Poland is interested in exporting processed and food processing technology, pharmaceuticals, mining equipment, turnkey projects, particularly for sugar plants and power generation with a view to bridge its trade deficit with India.
 
India-Poland bilateral trade is around $ 560 million and the two countries have decided to raise it to at least $ one billion in the next few years. "We are worried about our negative trade balance. Last year our exports to India fell by 20%, while India's exports to Poland increased by 47%," said the visiting Polish Secretary of State for Economic Affairs, Adam Szejnfeld.
 
Szejnfeld is leading a strong business delegation to India to attend the India-Poland Joint Business Council (IPJBC) meeting, which was set up in 2006, following the visit of the Indian commerce minister, Kamal Nath to Poland in the same year. IPJBC is the initiative of the Federation of Indian Chambers of Commerce and Industry (FICCI) and Polish Chamber of Commerce.
 
Szejnfeld also met Nath and discussed with him about boosting trade and economic cooperation between the two countries. Poland has also invited Indian investment. "We have decided to disinvest government equity in 740 public sector enterprises, particularly those relating to shipping, coal mines, power, chemicals and pharmaceuticals. We welcome Indian investment in these Companies," he said.
 
He said that Poland was interested in selling defence equipment, aircraft and helicopters and offer consultancy services. He said that Poland was in favour of boosting economic cooperation with India particularly in IT, R&D, education and science and technology and sanitary and phytosanitary measures.
 
Poland has extended the moratorium on GM crops for the next three years and was interested in developing alternate sources of renewable energy so as to reduce its dependence on bio-fuel which has caused the current food crises, he said.
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GEAC calls for socio-economic survey of Bt brinjal
 
 
ASHOK B SHARMA
Posted online: Saturday , May 24, 2008 at 0015 hrs IST
 
New Delhi, May 23 The Genetic Engineering Approval Committee (GEAC) has decided to ask the National Centre for Agriculture Economics and Policy Research (NCAP) to conduct a socio-economic survey of the Bt brinjal developed by the Indian seed company, Mahyco with technology sourced from Monsanto.
 
NCAP is one of the affiliated institutes of the Indian Council of Agricultural Research (ICAR).
 
The director of the Indian Institute of Vegetable Research (IIVR), Mathura Rai and the ADG of plant protection, TR Rajendran will also be associated with the socio-economic survey of Bt brinjal.
 
GEAC's cautious move follows the sharp criticism of the founder director of Centre for Cellular and Molecular Biology (CCMB), Pushp M Bhargava about the lack of health and bio-safety data of GM crops in the country.
 
He also pointed out the incidence of sheep mortality reportedly due to grazing over Bt cotton fields in Warangal and Adilabad districts in Andhra Pradesh.
The Supreme Court while passing an interim order in a writ petition filed by Aruna Rodrigues, PV Satheesh and Rajiv Baruah had said that Bhargava and MS Waminathan should be invited in the GEAC meeting.
 
Though the GEAC has called for socio-economic survey of Bt brinjal it is yet to take a decision on proper biosafety and health data as suggested by Bhargava.
The GEAC is slated to meet May 28, 2008 and on the agenda for discussion is the consideration of conducting experimental seed production of Bt brinjal by Mahyco, apart from issues relating to commercial releases and field trials of different Bt cotton hybrids.
 
GEAC has, however, agreed that there is an urgent need to suggest integrated resistance management strategy in respect of Bt cotton as suggested by KR Kranthi of the Central Institute of Cotton Research.
 
Kranthi had suggested that such a strategy needs to be implemented to prevent increased pest attacks on Bt cotton.
 
The GEAC is of the view that until a suitable integrated resistance management strategy is put in place the current practice of maintaining 20% area as refuge should be strictly complied with.
 
GEAC has also decided to review the Supreme Court's order on biosafety protocol.
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Cartagena Protocol fails to ensure global liability
 
 
ASHOK B SHARMA
Posted online: Thursday , May 22, 2008 at 2311 hrs IST
 
New Delhi, May 21 The fourth meeting of parties to the Cartagena Protocol on Biosafety which concluded in Bonn in Germany last week (May 12-16, 2008) failed to ensure a global liability regime for the damages likely to be caused by the living modified organisms (LMOs) due to India not taking an assertive position, alleged the convener of Gene Campaign, Suman Sahai.
 
Gene Campaign was invited to attend the Bonn meeting as observer and Sahai said "we were closely watching the position of different countries which are parties to the Cartagena Protocol.
 
India is a member of the "like minded" group of 80 countries which has a common stand on demanding a global liability regime and strict implementation of the precautionary principles of the Cartagena Protocol. While Malaysia, The Philippines, Columbia and other countries of the group strongly lobbied for the birth of a global liability regime, Brazil, Japan and Peru opposed the move and as a result the conference could not take a decision, but agreed to discuss in the next meeting, she said.
 
Indian delegation was led by the ember-secretary of the Genetic Engineering Approval Committee (GEAC), Ranjani Warrier. Sahai alleged "India instead of asserting for a global liability regime made an utterly presentation saying that it had implemented the relevant provisions of the Cartagena Protocol."
 
She said, "India has no provision for participation of civil society groups or public representatives in the decision making on issues relating to LMOs, which is contrary to Article 23 of the protocol. Though there is a law relating to right to information, the government had on many occasions refused to divulge data on biosafety. The social and economic impact of GM crops has not yet been assessed so far. Government has not yet accommodated precautionary principles relating to GM crops or any mechanism for addressing liability and redress and has not introduced labeling of GM food. Instead it is introducing GM brinjal in the centre of its origin."
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TNAU ventures into developing transgenic hill banana
 
 
ASHOK B SHARMA
Posted online: Monday , May 26, 2008 at 2235 hrs IST
 
New Delhi, May 25 Tamil Nadu Agriculture University (TNAU) is developing transgenic hill banana, which would be resistant to bunchy top virus (BBTV).
 
Speaking to FE, P Balasubramanian of the TNAU's centre for plant molecular biology said, "We are planning to engineer resistance in the hill banana cultivar, Virupakshi against BBTV. A full-length 850bp replicase gene of BBTV from infected hill banana was isolated in our laboratory. The isolated sequence showed a high homology to the already reported BBTV replicase gene sequence from India in NCBI database. The isolated replicase gene may be cloned into RNA silencing (RNAi) vector, panda, sourced from Nara Institute of Science and Technology, Japan. The silencing gene construct developed may be used in hill banana transformation."
 
Balasubramanian further said that that in addition to hill banana, TNAU was working on transgenic transformation of the popular Cavendish banana cultivar, Robusta (AAA). So far an efficient regeneration protocol has been standardised on Robusta. Successful regeneration of a diploid banana, Ney poovan (AB) has also become possible. Hill bananas are perennial in nature and are found at an altitude of 2,000 to 5,000 feet above sea level in the region of well distributed annual rainfall of 1,250-1,500 mm.
 
Hill bananas are the ruling crop of the lower Pulneys hill ranges, Sirumalai and Kolli hills of Tamil Nadu from the 1940s. BBTV has been the sole cause for reduction in hill banana cultivation from 18,000 hectare in 1970s to a mere 2,000 hectare at present.
 
 "None of  the strategies now available are able to completely protect the plants against BBTV. Improvement of this crop through conventional breeding has not been successful," said Balasubramanian
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Modified loan waiver scheme stays elusive for most farmers
 
http://www.financialexpress.com/news/Modified-loan-waiver-scheme-stays-elusive-for-most-farmers/314962/
 
ASHOK B SHARMA
Posted online: Tuesday , May 27, 2008 at 2353 hrs IST
 
New Delhi, May 26 The modified farm loan waiver scheme announced by the Union finance minister P Chidambaram on Friday still falls short of rendering justice to the majority of farmers in the dryland areas. The finance minister has not deviated from the general definition of small and marginal farmers, which is not applicable to conditions in dryland areas.
 
Government has proposed that about 30 million small and marginal farmers will get full debt of their short-term crop loans and overdue of instalments on investment credit that were disbursed by banks till March 31, 2007 and were overdue on December 31, 2007 and remained unpaid till February 29, 2008.
 
Modifying his earlier announcement in his Budget speech, Chidambaram has sought to write off the overdue of instalments on investment credit.
 
As per general definition cited by Chidambaram a marginal farmer is one who has holding up to one hectare (2.47 acre) and the small farmer is one who has holding up to two hectare (5.94 acre). According to the recent edition of Union agriculture ministry's Agricultural Statistics at a Glance, resource poor farmers indryland areas, highly dependant on erratic rainfall and without assured irrigation, have higher holding like 54 to 175 acre in Rajasthan, up to to 60 acre in Tamil Nadu, up to 54 acre in Haryana, Madhya Pradesh and Maharashtra. Most of the farmers in dryland areas in different parts of the country would, therefore, not be able to reap the benefits of the loan waiver scheme.
 
However, Chidambaram has applied his own logic and has selected 237 districts under the government's two drought programmes – DPAP and DDP – and the debt stressed ones under PM's special relief package. He said that under the one time debt settlement scheme (OTS) where the government would pay 25% of the farmers' loan or Rs 20,000 per indebted farmer, whichever is higher, the outstanding loans of many farmers having more than two hectare holding in these districts would be waived off, as the loans size is comparatively small.

Farmer leaders are not prepared to buy Chidambaram's logic. " The modified scheme is no better for farmers in dryland areas. The Rangarajan Committee has said that only 27% farmers are covered under institutional credit. There are about 750 million farmers in the country and the loan waive scheme is meant for those who have sourced credit from banks and do not benefit majority of farmers," the president  of Bharatiya Krishak Samaj, Krishan Bir Chaudhary.
 
"The finance minister needs to understand the reality of dryland areas and further modify the scheme," said the senior farmer leader, Mahender Singh Tikait of Bharatiya Kisan Union
 
The modified scheme has also proposed a bail out from investment loans for dairy, poultry, goatery, sheep rearing, piggery, fisheries, bee keeping, greenhouses, biogas digging wells, installation of pump sets, tractor and bullock purchases, land development, plantations and horticulture.
 
Chidambaram has estimated that the scheme would benefit 4,30,00,000 farmers – 30 million farmer under complete loan waiver and 10 million farmers under OTS. The modified scheme would cost the government Rs 71,680 crore  
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Local initiatives show the way to welfare
 
 
ASHOK B SHARMA
Posted online: Monday , May 26, 2008 at 2042 hrs IST
 
New Delhi, May 25 : Local communities in various parts of the country have set an example of how food security for poor can be ensured with better targeting and stakeholder participation.
 
An e-discussion group of stakeholders, called Solution Exchange, conducted by the United Nations Development Programme (UNDP), noted that if suitably empowered, village local governments–panchayati raj institutions–can contribute to food security just as they have contributed to literacy, health, education, sanitation and drinking water programmes.
 
Some panchayats in Chhattisgarh have designed programmes for improving the poor people's access to food and audit the public distribution system (PDS) & food Markets against distortions & leakages through greater stakeholder participation. This programme involved a special mandate for organising gram sabhas and community volunteers called Mitanins (chosen by panchayats) for mobilising health & nutrition support services and influencing behaviourial change.
 
In some gram sabhas in Chhattisgarh the agenda of nutritional security has been integrated with the help of CARE. The political mandate helped create a conducive environment, and home visits by Mitanins and other volunteers provided special health and nutrition services to women and children.
 
In Maharashtra the grain bank programme initiated in the Atpadi taluka of Sangli district is a step to ensuring food security to the community.
 
In Kerala, the Kudumbasree Mission and Asraya Project – a multi focal programme for destitutes–provide for the households' basic needs and addresses vulnerability issues. Food security, a key concern of destitutes, is being successfully managed under this programme. Across four districts, 21 panchayats have been found suitable for providing food security to vulnerable groups, if they get professional support. Also, the panchayati raj institutions in prime poverty zones in tribal areas can address the issue of food security.
 
However, the Solution Exchange Programme noted that the experience of the implementation of the NREGS in Maghalaya and Haryana points towards a basic weakness of panchayats and district councils in operationalising such schemes without adequate capacities. This makes control of malpractices and leakages difficult since accountability mechanisms are weak. In Haryana, one sarpanch even went to the extent of suggesting that no powers should be given to panchayats.
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