Bihar's paddy cultivation dips by 58%

Sowing area of paddy in Bihar, which registered 42% less rainfall, has declined by 58% to 15 lakh hectares. In the kharif season, the state also suffers from less area under cultivation compared to the last season. S Singh, deputy director - statistic, Bihar agriculture department, said, "In the last kharif season, the acreage stood at 34.5 lakh hectare. The targeted area for the ongoing Kharif season was 35.5 lakh hectare." The union agriculture ministry said that due to less rainfall, area under coverage of rice in Uttar Pradesh and Bihar is less than last year. Planting will continue up to August-end in eastern Uttar Pradesh and Bihar. In an official statement, the ministry, said, "Overall, the total paddy acreage till August 6 is 228.19 lakh hectares, 58 lakh hectares less than the year-ago period. In case of oilseeds and pulses also, area under coverage in Bihar is lagging behind the target. Area under pulses so far is 1.41 lakh acres against the target of 3.08 lakh acres, while oilseeds acreage is only 14,287 acres as compared to the target of 48,421 acres." Further, Bihar chief minister Nitish Kumar had declared 26 of the 38 districts as natural calamity-hit and urged the Prime Minister Manmohan Singh to immediately rush a team of union ministers to assess the drought situation. The state government will also seek Rs 10,500 crore to deal with the situation. According to estimates, the drought has affected 1.26 crore families in the state.

161 districts face drought, but don't panic, consoles GoI

More than a quarter of India's districts are facing the threat of drought and the sowing of crops nationally is 20 per cent lower than in the previous year, Finance Minister Pranab Mukherjee. While many of these districts are not major crop producers, the Minister's statement underscored growing government concern that a weak monsoon could reduce output of crops like rice and dampen economic growth already hit by a global recession. After the driest June in 83 years, the annual rains have been more than a quarter below below normal this season. The Minister said he expected the economy to expand more than six per cent in 2009/10, in line with the central bank's outlook, although some private economists have warned that the risk is to the downside given the poor monsoon performance. "Monsoon situation is still erratic," Mukherjee told reporters. SC steps in as drought looms large, Govt jittery. "One hundred and sixty one districts have been declared drought prone. So far as sowing is concerned, 20 percent would be down," he said. India has 604 districts. He did not specify the drought-prone districts. The rain deficit since June 1 worsened to 28 per cent at the weekend, raising fears that the season may turn out to be as bad as 2004 when summer crop output fell 12 per cent after a drought. GDP fell to 7.5 per cent that fiscal year from 8.5 per cent in the previous year. The rains are vital for sugarcane, oilseeds and other crops, although the impact has been more severe for certain crops - particularly rice - than for many others. A feared shortfall in the sugar harvest has lifted global prices to near record highs. Mukherjee said the government was ready to manage a drought and a contingency plan was also in place. "Of course, always there is a contingency plan," the Minister said. "There is no point of pressing the panic button because you will go and start chanting drought, drought, drought and it will have an adverse impact," he said. Among measures the government could take to mitigate the situation are to raise imports and curtail exports. It has already stepped up efforts to buy more sugar and has banned wheat exports and restricted rice shipments. "Fortunately, Punjab and Haryana have extensively used the ground water. Bihar and certain other states, there are shortfalls," Mukherjee said. Mukherjee was also confident that targets for direct tax receipts for the 2009/10 fiscal year would be surpassed. Asia's third largest economy expanded 6.7 per cent in the last fiscal year, sharply lower than the nine per cent or more it grew in the previous three years, as the global economic crisis took a toll. "It's still a budding recovery so the deficient monsoon has overshadowed the recovery process," said Rupa Rege Nitsure, chief economist at Bank of Baroda in Mumbai. "Growth of around six per cent is feasible despite the fact that monsoon has so far been deficient, but it being above 6.5 per cent or in the range of 6.5 to 7 per cent looks impossible," she said. Last month, Agriculture Minister Sharad Pawar told Parliament that four states - Manipur, Jharkahand, Assam and Uttar Pradesh - declared drought in certain pockets. Bihar also declared drought in 26 of 38 districts. Other than Uttar Pradesh, which accounts of almost half of the country's sugarcane production, other drought-hit states do not make a significant contribution to India's farm output.

Bihar Declares 26 of 38 Districts Drought-Hit

The Bihar Government on Monday declared 26 out of 38 districts in the state as drought-hit following deficient rainfall, and asked Prime Minister Manmohan Singh to sanction a special package to tackle the crisis. The state cabinet, presided over by Chief Minister Nitish Kumar, took a decision to this effect at a special meeting. After a thorough and intensive review of the situation in the state and reports received from district collectors, the cabinet declared 26 districts as "natural calamity-hit", Kumar said after the meeting. Kumar appealed to the Prime Minister to immediately send a team of Central ministers for an assessment of the situation and asked for a special financial package to the state.

On the opposition's demand for declaring the entire state drought-hit, the chief minister said the Cabinet discussed the matter and decided to include some more districts after a thorough review of the situation. The state government has declared Patna, Nalanda, Gaya, Buxar, Bhojpur, Rohtas, Kaimur, Siwan, Arwal, Nawada, Munger, Aurangabad, Sheikhpura, Lakhisarai, Jamui, Bhagalpur, Banka, Saran, Jehanabad, Muzaffapur, Sitamarhi, Begusarai, Madhepura, Kishanganj, Katihar and Vaishali as "calamity-hit". Bihar, between June 1 and August 6, received just 331.7 mm of rain against the normal 568.5 mm, a deficiency of 42 per cent. This resulted in 58 per cent decline in paddy transplantation which was targetted at 87,722,41 acres. Paddy could be planted in only 38,22,967 acres this year, official sources said. Pulse, another major crop in the state, could be planted in just 1,41,156 acres of land against a target of 3,08,881 acres and oilseeds in 14,287 acres against a target of 48,421 acres, the sources said. Deputy Chief Minister and Finance Minister S K Modi and Chief Secretary Anup Mukherjee were also present in the meeting.

Foodgrain harvest to dip 3.4%: FAO

World foodgrain production is VV likely to drop this year by 3.4 per cent but it would still be the second highest harvest on record, next only to the last year's record output. The lower production would, therefore, neither perceptibly impact the global grain stocks nor stem the downturn in the international prices of most cereals, barring rice. This has been revealed in the latest report on the global food outlook released by the UN Food and Agriculture Organisation (FAO). It has indicated that the export supplies are likely to remain at last year's level due to large carryover stocks and an anticipated fall in demand, especially for wheat and coarse cereals, because of lower use of grains as animal feed. The report points out that the international prices of most foodgrain have weakened considerably in the past few weeks, being pushed down by seasonal harvest pressure and reasonably good production prospects. Besides, factors like favourable production outlook in several countries, including India, Chine, north Africa and the CIS countries, and good rainfall in Australia have also continued to softening of global grain prices. The export price of uS wheat (No 2 hard red winter wheat) was $228 a tonne last week. This is about 33 per cent lower compare to last year and about 50 per cent below the peak touched in 2008. However, the international prices of rice have shown more resilience thanks to rather unnfavourable monsoon rains in India in the early phase of the season. The FAa report projects the total cereal output in 2009 at 2,208 million tonnes, down 3.4 per cent from 2,285 million tonnes in 2008. The reduction is mainly in the output of wheat (down 4 per cent) and coarse grains (down 4.3 per cent). The production of rice is forecast to increase, though the rice prices are also projected to remain film because of higher demand and lower export supplies. The wheat output in 2009 is projected at 655 million tonnes, down 4 per cent from 683 million tonnes bagged in 2008. The bulk of decrease is accounted for by lower harvests in parts of Europe and the USA where the farmers reduced area under the crop in view of anticipated fall in returns due to lower international prices. The coarse cereals output is put at 1,093 million tonnes, against the record 1,142 million tonnes last year, marking a drop of 4.3 per cent. Africa is the only region where output is foreseen to increase, and most of that reflects a recovery in North Africa after drought last year," the report states.

Bihar braces for drought after deluge

BIHAR is in for a drought- like situation with the monsoon still playing truant across the state. Except Purnia, none of the 38 districts has received normal rainfall over the past month and a half, triggering panic among farmers and authorities. Ironically, the state had faced devastating Kosi floods last year. But this year, the possibility of a drought looms large. Several districts, including Buxar, Bhojpur, Kaimur, Aurangabad, Samastipur, Khagaria and Begusarai, have received negligible rainfall. In June, the rainfall deficit was 52 per cent. In the first fortnight of July, it stands at 62 per cent. The rainfall crisis has already dealt a blow to the state government’s target of paddy transplant in 35.5 lakh hectares. According to agriculture department sources, paddy saplings have been planted so far in only 2.6 lakh hectares — 7.32 per cent of the government’s target. Taking cognisance of the impending disaster, the state government has chalked out a contingency plan to deal with the situation. It has raised its contingency fund from Rs 350 crore to Rs 1,500 crore and set up a crisis management group headed by chief secretary RJM Pillai. Chief minister Nitish Kumar, who held a high- level review meeting with top officials here on Monday, said the group would meet every day to monitor the situation. “ Given the scenario, Bihar seems to be heading for a possible crisis,” he said. “ But we are prepared with all contingency plans.” Nitish has directed the Bihar State Electricity Board ( BSEB) officials to provide uninterrupted power supply for at least eight hours in the rural areas to help the farmers irrigate their land. He said BSEB’s chairman had been asked to prepare the schedule and fix the duration of supply in all villages. The board has also been asked to hold daily joint meetings with the minor irrigation department officials to review the condition of state- and private- owned tubewells and ensure replacement of burnt transformers at the earliest. The government has also decided to extend the diesel subsidy of Rs 15 per litre to farmers beyond two rounds of irrigation. The government has also decided to provide subsidy for seeds to all farmers who had lost them because of scanty rainfall. According to an estimate, the farmers have already lost approximately 50 per cent of the paddy saplings due to heat so far. Agricultural scientists in the state have already advised farmers to sow pulses, vegetable, oilseed and maize instead of paddy, if the rains continue to elude Bihar. There are also suggestions to opt for short- duration paddy variants which are ready for harvesting in four months. According to the meteorological department, Bihar had received 404.4 mm rainfall against the normal 317.5 mm by July 13 last year which was 46 per cent more than normal. But this year, the state has experienced only 121.8 mm rainfall — 62 per cent less than normal during the month. The Met office was hopeful that Bihar may get some rain in the next 48 hours.

Food bill first drought casualty

With the countrys northern and eastern regions facing the spectre of a drought, the Manmohan Singh governments ambitious plans of providing food security to all has taken a hit, at least for the time being. The proposed National Food Security Bill, which had been included in the governments 100-day roadmap, has been put on the back burner. Under the programme, the government was to provide 25 kgs of rice or wheat at Rs 2 per kg to all BPL families. Government officials confirmed that the bill, which was being drafted by the agriculture ministry, had been put on hold, given the fact that the country was experiencing a deficient rainfall, which had affected the sowing of the kharif crops. The below-par monsoon has upset the calculations of the Manmohan Singh government. The deficit in rainfall was expected to be around 30%, and, to the agriculture ministrys dismay , the sown area under paddy, the foremost among kharif crops, was lower than last year. Latest estimates showed a decrease of six million hectares in paddy-sowing in the rainfed states a fact which was admitted as much by Prime Minister Manmohan Singh on Saturday. The moisture factor was also causing concern, and there were expectations that paddy production would also take a knock. A low paddy production would be accompanied by a low procurement, causing a severe strain on the countrys buffer stocks.

In his reply to the discussion the price situation on the concluding day of the budget session, agriculture minister Sharad Pawar had sought to assuage the feelings of the Lok Sabha members, assuring that the government had enough rice and wheat in its stocks to meet the peoples requirements for the next 13 months. Riding on a record procurement of wheat in the previous season, its stock was pegged at 252 lakh tonnes. Rice procurement too touched dizzy heights last year, contributing 356 lakh tonnes to the coffers.`` As of now, weve enough stock of these foodgrains to feed the people for the next 13 months, he had told the House. With the monsoon playing hard to get, the government has now set its sights on delayed rainfall for a normal rabi season. `` But even if that too fails to gather momentum, then weve grim times ahead, a senior food ministry official told ET. That being the case, the Manmohan Singh governments plans to roll out the food security programme in this year itself has received a setback. `The conditions are not such to enable us to embark on such a grandiose adventure at this juncture, senior government officials pointed out. The proposed bill was part of the bouquet of poll-eve promises made by Congress in the run-up to the general election. President Pratibha Patil, in her address to the joint session of Parliament in June this year, had remarked that legislation would `` provide a statutory basis for a framework, which assures food security for all. Every family below the poverty line in rural as well as urban areas will be entitled , by law, to 25 kg of rice or wheat per month at Rs 3 per kg. This legislation will also be used to bring about broader systemic reform in the public distribution system (PDS). Finance minister Pranab Mukherjee , in his budget proposal for 2009-10 , had said that the agriculture department would draft the bill and put it on the website of the department of food and public distribution to elicit public opinion soon, but refused to come out with any timeframe.

All-party meeting resolves to declare Bihar drought-hit

All political parties of Bihar today resolved to declare the state as drought hit and sought adequate financial help from the Centre to meet the crisis. The all-party meeting held here today to discuss the issue of drought also decided to send a joint memorandum to the Centre in this regard. Speaking to mediapersons after the meeting, Chief Minister Nitish Kumar said the decisions taken by the representatives of all political parties to meet the crisis would be put up at the special cabinet meeting scheduled tomorrow for its approval. However, visualising the situation that was in store, the state government had already initiated certain steps to mitigate the sufferings of farmers. Claiming Bihar to be the first state to provide diesel subsidy to its farmers for irrigation purpose, the Chief Minister said they would also be provided with seed subsidy to purchase seeds. The state government also plans to ensure uninterrupted power supply in the rural areas for at least seven hours so that the farmers owning electric pumps could irrigate their fields. It was for this purpose the state had sought 300 megawatts of additional power from the Centre but the Centre could agree to provide only 31 megawatts of additional power to it so far. Similarly, in response to the demand of Rs 450 crore for providing diesel subsidy, the Centre had sanctioned only Rs 117 crore so far. Calling the Centre’s aid of Rs 117 to be just a drop in the ocean , Nitish said the Centre should understand the enormity of the problem and then decide on the aid. Regretting the Centre’s response to tackle the Kosi flood disaster in the state last year, Nitish said the state’s demand of Rs 14,500 crore relief and rehabilitation package for the victims of Kosi deluge, referred by the Prime Minister as national calamity, was yet to be given. In view of our past experience with the centre to tackle disasters, we decided to go ahead with our own contingency plans to meet the crisis, the Chief Minister added. The state government had already formed a ‘Crisis Management Group’ under the Chief Secretary for day-to-day monitoring. The Chief Minister at his level had already held three review meetings with the Principal Secretaries of concerned departments like water resources, agriculture, energy, minor irrigation, animal husbandry etc. The ministers in-charge of different districts had also given their reports to the Chief Minister after holding regular meetings at their respective district headquarters to assess the enormity of drought.

Bihar set to become food processing hub.

After getting an in-principle nod from the Union Agriculture Ministry to produce ethanol from sugarcane, the Bihar Government is now keen to present the State as a food processing hub. Officials believe it would create for the State an industry-friendly image and attract investments. The NDA Government led by Nitish Kumar has been trying through a series of measures such as one-on-one meetings with industry leaders and conferences, to attract investors. In a bid to dispel the ‘industry-hostile’ notion, the Chief Minister dispatched his officials across the country to persuade national and international investors to set up food processing units in the State rich in fruits and cereals. Recently a group of officials led by Principal Secretary (Industry) AK Sinha came to the national capital to partner an international summit cum exhibition on food processing and agribusiness to showcase Bihari food products on dining tables of private houses and restaurants. While the details of the achievement garnered through the effort is not quantified by the State officials, the interest to tap the potential and opportunities for investors in food processing is stressed in the State that is going to Assembly election next year on the slogan of its development activities in post-Lalu Bihar. While talking to mediapersons Sinha claimed that the industry department had so far undertaken five road-shows in Patna, Muzaffarpur, Bhagalpur, Begusarai and Calcutta, for highlighting the Government’s strength in the food processing, to different investors. As the National Commission of Farmers had in its reports mentioned the then State as the “sleeping giant” of Indian agriculture, the Government hoped that it could make a mark if the Union Government helped the State through its public investment in power sector to begin with. To improve industrialisation, the State Government has decided to provide capital grant up to 40 per cent of the project cost, subject to a maximum Rs 10 crore in case of common cluster infrastructure and up to 35 per cent of the project cost subject to a maximum Rs five crore in case of an individual investor. Eligible components to be funded under the scheme are land & factory building, plant and machinery, R & D quality control centre, warehousing facilities, training centre, trade and display centre, water supply, electric supply including captive power plant, effluent treatment, telecommunication lines etc. Under the second scheme for food parks, it provides for a capital grant up to 20 per cent of the project cost subject to a maximum Rs 15 crore.