NEWS Bulletin from Indian Society For Sustainable Agriculture And Rural Development
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1. India-Myanmar border trade all set to improve
2. Assocham critical about FTA with China
3. Indian herbal market to grow by 20%
4. SMP for sugarcane may be raised
5. Farmers say no to SEZs, GM crops
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India-Myanmar border trade all set to improve
ASHOK B SHARMA
Posted online: Thursday , April 03, 2008 at 1850 hrs IST
New Delhi, April 3: India and Myanmar has decided to increase the border trade between the two countries which at present is limited to 22 select items
Both sides expect that the agreement on the Kaladan multi-modal transit-cum-transport project signed on Thursday night would help to increase connectivity between the two countries.
Minister of State for Commerce, Jairam Ramesh said that the Rs 548 crore project would be entirely funded by India and the Inland Waterways Authority of India has been appointed as project development consultant.
The project would like link by road Kolkata in India to Sittwe, Kaleutwa in Myanmar and would touch the Mizoram in India. It envisages development of 225 km waterway on the river Kaladan and upgradation of the ports and construction of two roadways.
The Myanmar senior general, Maunge Aye is leading a strong official and business delegation to India. Myanmar has also sought. India's cooperation in exploration of hydrocarbons, oil and natural and also for setting up of refineries. It has sought Indian cooperation in higher education, mining, IT and science and technology.
Ramesh said : "The northeastern India would be able to boost its border trade with Myanmar. We will also consider opening up of trading points Mizoram, Arunachal Pradesh and Nagaland. At present we have only one trading point at Moreh in Manipur. The project would also help India to effectively integrate with the ASEAN region through Myanmar."
The president of the Union of Myanmar Federation of Chambers of Commerce and Industry (UMFCCI), U Win Myint said that as per official figures Myanmar's exports to India in border trade declined from $ 11.325 million in 2004-05 to $ 11.176 million in 2005-06, while India's exports across the border increased from $ 4.443 million to $ 5.533 million in 2005-06. The total border trade increased from $ 15.768 million in 2004-05 to $ 16.709 million in 2005-06.
He said there was enough scope to increase the border trade. The Federation of Indian Chambers of Commerce and Industry (FICCI) and UMFCCI signed a MoU on Thursday for boosting trade and investment the two countries.
In the overall trade between the two countries, the balance is however in favour of Myanmar which exported $ 781.93 million to India in 2006-07 and imported $ 139.05 million in return. India's exports largely consisted of drugs, pharmaceuticals, fine chemicals, manufactured rubber products, plastic and linoleum products, primary and semi-finished iron and steel and project goods.
India's imports from Myanmar was mainly pulses, wood and wood products, natural rubber, pulp and paper wastes transport equipment
India is the second largest destination for Myanmar's exports, India is ranked fourth exporting country in terms of Myanmar's imports. In terms of foreign direct investment (FDIs) flows into Myanmar India is ranked 14th.
The Myanmar Minister for Commerce, Brigadier General Tin Naing Thein said that smoothening of payment transactions and transport facilities can improve the trade between the two countries. He said that Myanmar was keen to improve border trade with India. The Myanmar Minister for National Planning and Economic Development, U Soe Tha said that Myanmar was keen to have trade and cooperation with an emerging Economy like India....
Assocham critical about FTA with China
ASHOK B SHARMA
Posted online: Saturday , April 05, 2008 at 1941 hrs IST
New Delhi, April 5: One of the three apex industry bodies in the country, the Associated Chambers of Commerce and Industry (Assocham) has said that the government should consult industry association before signing free trade agreements (FTAs) with any country. Appropriate cost benefit analysis should be undertaken in terms of increase in net trade and improvement in employment, it said.
Assocham is particularly critical about the proposed FTA with China as that country has deliberately undervalued its currency to remain competitive.
In its study `India's FTAs and Indian Industry-2008' it said : "it is realized that in a globalised world Indian industry cannot shy away from international competition and it will be difficult to remain on crutches supported by the wall of high tariffs. But yes, if certain parameters are kept in perspective while starting negotiations on trade agreements with various countries and regions it may lead to a stronger and sustainable economic development in terms of improvement in employment and competitiveness."
The study called a careful preferential trade agreement (PTA) before a FTA where India has some inherent trade advantage with products on the sensitive lists having a reasonable timeframe so tat industry can gear up for competition. It cautioned that some countries with zero or low tariff rates have already suffered. Before initiating FTAs a level playing field in terms of access to infrastructure, market determined exchange rate and fuel cost should be determined.
The exports of raw materials should be discouraged and value added exports should be encouraged. Brand India should be marketed as provider of business solutions. Indian manufacturing business should overcome commodification of their products, the study said.
It urged the Reserve Bank of India to see that the changes in valuation of currency is gradual as sharp change in exchange rates could affect industrial exports. Banks should also make their clients (exporters) aware about currency hedging
Commenting particularly about the proposed FTA with China, the Assocham study said : "valuation of exchange rate has largely become market determined as also is linked to the strength of a country's Economy. That is fine so long as all countries follow economic principle in international trade so that there is a shared sense that most nations will benefit. But the joker in the pack, the undervalued Chinese currency, the Renminbi has put competitors including India at a disadvantage. Driven by an artificially cheap currency, China's leaders have staked their country's political stability on export-led job creation. Would other countries exports be blamed for destroying domestic jobs? Already China has turned from the world's largest steel importer to exporter and has a huge trade surplus with USA and obviously with India."
India with a higher tariff regime at about 12.5% may be called upon reduce its duty to the level of China at 6% in event of a FTA, which may cause problems to the industry.
Another concern was the growing India's trade deficit with China – from $ 506.74 million in 1994-95 to $ 1424.04 million in 2004-05, the study said.
Regarding proposed FTA with Singapore, the study urged India to be very careful in dealing with exports from third country as Singapore being already open for imports from many countries.
However, the Assocham study favoured FTA with Bangladesh in terms of mutual benefit. ...
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Indian herbal market to grow by 20%
ASHOK B SHARMA
Posted online: Friday , April 04, 2008 at 1820 hrs IST
New Delhi, April 4: Indian herbal market is registering an extremely significant growth and is likely to reach Rs.14,500 crore (Rs 145,000 million) by 2012 and exports to Rs.9,000 crore (Rs 90,000 million) with a CAGR of 20% and 25% respectively, according to findings of the Associated Chambers of Commerce and Industry of India (Assocham).
In a Chamber Study on `Herbal Industry Biz Potential' has revealed that currently, the Indian herbal market size is estimated at Rs.7000 crore (Rs 70000 mn) and over Rs.3600 crore (Rs 36000 mn ) of herbal raw materials and medicines are exported by India.
Assocham has organized an International Herbal Expo in Delhi on Friday in which 50 international buyers are participating
The reasons cited for the herbal industry experimental growth comprises setting up of Herbal farm clusters by the government for improving quality of drugs and promotion of exports, doubling the cultivation of medicinal plants by converting existing farmland, continuous focus for R&D on product and process development and effective marketing of herbal products, the study said.
The study also revealed that out of 700 plant species commonly used in India, only 20% were earlier being cultivated on commercial scale and 90% of medicinal plant used by the industries are collected from the wild.
On the whole, India is stated to have 45,000 plant species (nearly 20% of the global species) occurs in the Indian sub-continent. Out of these, about 4,500 species of both higher and lower plant groups are of medicinal value.
The study, however, said that the major hurdle for cultivating medicinal and aromatic plants as a sustainable agricultural profession were the lack of organized and regulated Markets in India. The regulated production on scientific lines, effective enforcement of licensing system and setting up of Export Promotion Zones (EPZ) in select states will push up exports of herbal material and medicines.
Apart from that, the Indian herbal drug exporters face the stringent quality norms imposed by the EU through the Traditional Herbal Medicinal Products Directive (THMPD), Food Supplement Directive (FSD) and these directives also encouraged the high quality products and subsequently the unorganized sectors sub-standard products are rejected by them.
India followed by China is the largest producer of medicinal plants, having more than 40% of global diversity. The states which are major producer of herbal plants having the highest medicinal value include Gujarat, Rajasthan, Haryana, Tamil Nadu, Andhra and the Himalayan Range.
According to Assocham estimates, over 70% of the plant collections involve destructive harvesting because of the use of parts like roots, bark, wood, stem and the whole plant in case of herbs. This poses a definite threat to the genetic stocks and to the diversity of medicinal plants if biodiversity is not sustainably used.
Around 70% of India's medicinal plants are found in tropical areas mostly in the various forest types spread across the Western and Eastern ghats, the Vindhyas, Chotta Nagpur plateau, Aravalis and Himalayas. Although less than 30% of the medicinal plants are found in the temperate and alpine areas and higher altitudes they include species of high medicinal value. Macro studies show that a larger percentage of the known medicinal plant occur in the dry and moist deciduous vegetation as compared to the evergreen or temperate habitats.
"This will be particularly so because in the identified countries, urge for swadeshi (indigenous) herbal medicines has been rising due to their quality ingredients, availability factor and price competitiveness with virtually little side effects. Secondly, swadeshi (indigenous) herbs and medicines meet all the WHO prescribed standards and norms and thus encounter no restrictions in overseas markets to have instant acceptability from its takers", the study said.
The medicines that have established export demand in economies of scale and produced with international quality norms include psyllium husk, sema leaves & pods, sandalwood chips and dust, Jojoba seeds, psyllium seeds, pyrethrum, basil, hyasop, rosemary safe, svory, galangal rhizonmes and roots. The application of these medicines is multifaceted and cure even serious aliments with little precautions and that's why are in great demand. India's share in medicinal plant export in global trade is just about 2.5% against 13% of China.
The paper highlights that India has 15 Agroclimatic zones, 4700 different plant species and 15000 medicinal plants The Indian Systems of Medicine have identified 1500 medicinal plants, of which 500 species are mostly used in the preparation of drugs. ...
On March 31, I appeared on live in a panel discussion in the Lok Sabha Channel - 7.30 pm to 8.30 pm - on a discussion on the Sugar Development Fund Amendment Bill-2008 passed by the Parliament. The same was telecast on the same day on 11.00 pm to 12.00 pm -- and on April 1, 2008 on 3.00 pm to 4.00 pm.
I had strongly pleaded for the sugarcane farmers. In fact I have been fighting for the cause of sugarcane farmers since long. Bharatiya Krishak Samaj under my leadership was busy lobbying with the Commission on Agricultural Costs & Prices (CACP) and the government to adequately hike the statutory minimum price (SMP) for sugarcane - Here BELOW is a NEWS report which shows the results of our effort
