07.03.2016

KVASU to promote precision farming

At a time when the dairy sector in the State is facing a decline in productivity, Kerala Veterinary and Animal Sciences University (KVASU) has launched a series of farmer-oriented outreach programmes to enhance milk production.

The directorate of entrepreneurship, KVASU, is planning interventions in dairying like precision animal nutrition, productivity enhancement, and promotion of commodity-based self-help groups to ensure sustainable income from dairying.

Cross-breeding

“With the advancements in cross-breeding, the size of animals has gone up from an average 150 kg to around 350 kg. This has spurred the demand for feed ingredients, which alone account for more than 70 per cent of cost in dairying,” says T.P. Sethumadhavan, Director of Entrepreneurship, KVASU.

Precision farming involves optimising feed, breeds, water, and other inputs for enhanced productivity. It is aimed at supplying nutrients to animals matching their requirements to improve their health and to enrich dairy products for the good of the consumer. The department of animal nutrition at the university has developed a ration-balancing software named ‘Ksheeraprabha’ to address the issue. The software has been widely publicised among farmers and self-help groups through the Department of Dairy Development and milk cooperatives.

Recent researches conducted by KVASU at Chittur in Palakkad district on the mineral status of soil, fodder, feed, and blood of animals showed adequacy in iron and calcium content, while there was high deficiency of zinc in fodder and blood. There is deficiency of copper and selenium, too. “Farmers were given mineral mixtures developed by the university, which have improved the health of animals,” says Dr. Deepa Ananth, principal investigator of the project on precision nutrition.

The university is regularly conducting farmer-scientist interactions across the State to transfer appropriate technologies, which can improve productivity in dairying, Dr. Sethumadhavan said.

With the advancements in cross-breeding, the size of animals has gone up from an average 150 kg to around 350 kg. This has spurred the demand for feed ingredients, which alone account for more than 70 per cent of cost in dairying.

T.P. Sethumadhavan,

Director of Entrepreneurship,

KVASU

The practice involves optimising feed, breeds, water, and other inputs for more productivity.

Roof top gardening campaign inaugurated

Collector Archana Patnaik inaugurated a campaign to promote roof top gardening.

A release says that the State Government under the Urban Horticulture Development Scheme has been promoting roof top gardens with do-it-yourself kits.

The Department of Horticulture conducted the campaign in Singanallur farmers’ market, Sundarapuram, P.N. Palayam, Bharathi Park, Thudiyalur market, Saravanampatti and a few other places.

The release says that the kits will be available at the offices of assistant directors of horticulture in Madukkarai, Sarcar Samakulam and Thondamuthur. For details, contact 0422-2453578.

You can count these sheep

A rare breed — Jacob sheep — will return from a Canadian farm to their Biblical home in the Middle East where they are now extinct

Over thousands of years, they wandered from their homeland in the Middle East to Europe and finally travelled to North America, bound by a shared history and rigid dietary restrictions. But these nomads do not keep kosher. They are kosher.

Known as Jacob sheep, named for the biblical patriarch who, according to the Book of Genesis, selected the “speckled and spotted” ruminants as wages from his father-in-law, the woolly animals are set to make their own return to the Holy Land — from Canada, of all places. Their passage marks the resolution to an odyssey that blends the agricultural passions of two millennials with a spiritual devotion that has spanned four millenniums.

On a small farm 43 miles east of Vancouver, British Columbia, Jenna and Gil Lewinsky, an Israeli husband and wife, are raising around 130 Jacob sheep, which they plan to take to Israel this year on a specially fitted plane with all the pomp that would be expected to accompany the return of a lost tribe.

Indeed, the flock consists of some of the last heirloom Jacob sheep on Earth, and the Lewinskys hope their zeal for the rare breed will help enhance Jewish religious and environmental understanding for generations to come.

Enthusiasts, citing scripture, claim the sheep followed the Israelites to ancient Egypt and then spread out across the ancient world. Moorish traders brought them to Spain, where British merchants took a fancy to the colourful breed and imported the sheep for meat and wool, according to the Jacob Sheep Society, a British breeding organization.

About 120 years ago, the sheep disembarked in Canada and some were sold to zoos, which preserved the flocks far better than the mixed breeding that occurred in the United Kingdom.

Fast forward to 2014, when a chance meeting between the Lewinskys and a Canadian Jacob heritage farmer sparked something akin to divine inspiration. Once the Lewinskys discovered that the sheep were long extinct in Israel, they took it upon themselves to learn how to raise the animals in order to bring them back.

“We were not born shepherds,” Jenna Lewinsky, 31, said by telephone from her home in Abbotsford, British Columbia. “We had to learn everything from scratch.” They were not farmers, either: She had worked for the Israeli foreign ministry, and her husband, also 31 and a Canadian citizen, had been a journalist for The Jerusalem Post.

While they were receiving a crash course in animal husbandry from farmers and a veterinarian, Jenna Lewinsky asked the Israeli Embassy in Ottawa to aid their mission. But like the Israelites’ epic return from Egypt, getting the animals to the Middle East has taken much longer than expected.

Canada and Israel have long had deep agricultural ties relating to plants and food technology, including a robust trade in chickpeas from Saskatchewan that grace Israeli plates as hummus. But the two countries did not have any agreements for livestock, prompting Israel’s agriculture ministry to oppose the plan, according Eitan Weiss, a spokesman for the Israeli Embassy.

After a strong push by the embassy, led by Ambassador Rafael Barak, who witnessed the birth of a Jacob lamb at the Lewinsky farm, the Israeli government relented last year.

“It’s a Jewish value to conserve animals, repair the world and bring back this lost heritage to the Jewish family,” Gil Lewinsky said.

But even as the Lewinskys prepare to resettle their flock on a heritage farm in northern Israel — for educational and scientific purposes only — the Israeli Embassy is perhaps more excited that the sheep cleared the way for a broader bilateral agricultural agreement.

“The small stone created such an avalanche,” Weiss said. Still, he expressed relief that the animal at the biblical heart of it all was relatively easy to deal with. “Thank God crocodiles weren’t mentioned.”—New York Times News Service

On a small farm in British Columbia, Jenna and Gil Lewinsky, an Israeli couple, are raising around 130 Jacob sheep, which they plan to take to Israel this year

Chouhan visits PAU

Madhya Pradesh Chief Minister Shivraj Singh Chouhan on Sunday visited Punjab Agricultural University here and stressed on collaboration between agricultural universities of M.P. and Punjab for the benefit of faming community.

Mr. Chouhan was accorded a formal welcome by Punjab Agriculture Minister Tota Singh and the Vice-Chancellors of PAU and GADVASU, said an official release.

Mr. Chouhan said in future, collaboration between agricultural universities of both States will be made which will be beneficial for the peasantry.- PTI

Telangana Cabinet approves redesign of irrigation projects

Rs.1,900 cr. each allocated to Mission Kakatiya, Hyderabad Water Board

Telangana Energy Minister G. Jagadish Reddy and Finance Minister Etala Rajender arriving for the Cabinet meeting at the Secretariat on Sunday.-Photo: K.V.S. Giri

The Telangana Cabinet approved the redesign of irrigation projects in the State to create maximum irrigation potential by making best use of available water resources, mostly in the river Godavari and its tribuatries.

It was one of the several issues discussed and decided at the Cabinet meeting held here on Sunday. All the Ministers participated in the meeting chaired by Chief Minister K. Chandrasekhar Rao and it lasted for about three hours.

It is understood that the Cabinet has given its nod for taking loan from National Bank for Agriculture and Rural Development (NABARD) for irrigation and agriculture-related projects. It was decided to introduce Bills in the coming budget session of the Legislature to replace ordinances issued in the recent months with regard to municipal laws while going for elections to Greater Hyderabad Municipal Corporation (GHMC) first and Greater Warangal Municipal Corporation and Khammam Municipal Corporation later.

When contacted, official sources stated that though new policies on mining and information technology figured in the agenda, they were not discussed.

Among other decisions learnt to have been taken by the Cabinet include installation of one-lakh closed-circuit television cameras in the State Capital, allocation of three acres land to IAS Officers’ Association, whose building was demolished recently to enable construction of new official residence of the Chief Minister.

Further, the Cabinet has cleared government guarantee for the Rs.500 crore loan to be taken by Telangana State Road Transport Corporation (TSRTC), approved changes to be incorporated while adopting the Higher Education Act of the combined Andhra Pradesh State to Telangana, allocation of Rs.1,900 crore each to Mission Kakatiya and Hyderabad Metro Water Board and granting amnesty to some convicts, undergoing life imprisonment, with good behaviour on the occasion of next State Formation Day.

‘Start university for organic farming’

The focus of Finance Minister Arun Jaitley in his Budget speech on organic farming has brought cheers to farmers who have been practising traditional methods to raise crops. Though the North-East leads in organic farming, leaders like M. Balasubramanian of Tirumangalam, who is popularly

known asPamayyan , have been promoting the disuse of chemical fertilizers and pesticides all over Tamil Nadu. In a conversation with S. Annamalai , Mr. Pamayyan ponders over how organic farming can be encouraged, mostly in rain-fed areas.

Though farmers have been getting invaluable inputs from agricultural universities and colleges, there is a need to start an exclusive university to propagate organic farming in the country.

Pointing to the government’s initiative to increase crop yield in rain-fed areas, which account for nearly 55 per cent of the country’s arable land, by promoting organic farming, Mr. Pamayyan says that by nature rain-fed areas do not require chemical inputs.

Organic farming is the default method used by farmers in these areas. But only small farmers practise this farming now.

“They do not exploit groundwater and their usage of fertilizers and pesticides is low. Unlike irrigated farming, organic farming follows poly cropping” he says.

At the same time, the subsidy for rain-fed crops is low. Mr. Pamayyan’s one-line solution to increase area under organic cultivation is: “Shift focus from productivity to health and food security.” The focus should be on local production and local distribution, rather than export.

“Our farmers should be encouraged to produce food for our people. For this, they need holistic support from the government – from seed to produce.”

The Tamil Nadu government should come out with a policy for organic farming, since agriculture is a State subject.

A fund should be created to offset the losses for the farmers due to price fluctuations, on the lines of Disaster Management Fund.

“Now the Minimum Support Price announced by the government is below the market price. The farmer should be supported during price fluctuations like a government employee, whose Dearness Allowance is increased in tune with inflation index.”

The government should also advise the farmers on the choice of crop and volume of production in any given region, taking into account future needs.

A vigilance wing should be formed in the Department of Agriculture to prevent entry of banned pesticides in the market.

More importantly, the farm tool manufacturers should design their tools to suit the needs of small farmers.

“Above all, a university for organic farming should be started to primarily educate the farmers on appropriate practices.”

Nabard to come out with tax-free bonds

The National Bank for Agriculture and Rural Development (Nabard) will raise Rs.3,500 crore by issuing tax free bonds and Rs.2,100 crore or 60 per cent has been allocated for retail investors. The tenure of these bonds will be between 10 years and 15 years.

For retail investors, the coupon rate for the 10 year bond is likely to be around 7.29 per cent and for the 15 years bond, it is likely to be around 7.64 per cent. For non-retail investors, the coupon rate is expected to be 7.04 per cent and 7.35 per cent for 10 years and 15 years respectively, market participants said.

Nabard was permitted by the Central Board of Direct Taxes to raise tax free bonds of around Rs 5,000 crore this financial year. Nabard has already mobilised 30 per cent of the amount from institutional investors through private placement. The remaining Rs.3,500 crore will be mobilised throughpublic issue which will open on March 9. The bonds will be listed on the BSE.

About 40 per cent of Rs.3, 500 crore has been earmarked for qualified institutional buyers, corporate sector and high net worth individuals, while 60 per cent for retail investors who can invest up to Rs.10 lakh

Nabard has mobilised 30%

of the amount from institutional investors

Rain, hailstorm lash Shimla

High altitude areas in Himachal Pradesh on Sunday received fresh snowfall, while Shimla and its surrounding resorts of Kufri and Fagu were lashed by squall, followed by intermittent rain and hailstorm, which led to a fall in minimum temperatures.

Keylong in tribal Lahaul and Spiti district received 5 cm of snow while the high altitude passes of Rohtang and Kunam saw 20 cm and 25 cm respectively of fresh snowfall.

Chansel and Saach pass and Churdhar range in Sirmaur also received moderate snowfall while several areas in mid and lower hill areas saw moderate to heavy rain.

Overcast and foggy conditions prevailed in Shimla due to which visibility dropped to a few metres.

Bilaspur was wettest in the region with 22 mm rain while Manali received 20 mm rain, followed by 14 mm in Bhunatar, 13 mm in Dalhousie, 12 mm in Kufri and Banjar, 11 mm in Shimla, 10 mm in Gaggal, 9 mm in Seobagh, 8 mm in Una, 7 mm in Dharmshala, 6 mm in Kasauli, Jubbar Hatti and Naina Devi, and 5 mm in Paonta Sahib and Nahan.

Minimum temperatures dropped by few notches across the State with Keylong recording the lowest temperature of 0.6 degrees Celsius, followed by 1.2 degrees Celsius in Kalpa, and 1.8 degrees in Manali.

The MeT office has predicted squall or thundershowers at some places on Monday and rain and snow at isolated places in mid and higher hills over next two days.

Chandigarh: Rain lashed many places in Punjab and Haryana, with the maximum temperature settling in the range of 22-25 degrees Celsius in the region.

Among other places, rain lashed Chandigarh, Mohali, Jalandhar, Moga, Phagwara, Hoshiarpur, Ropar, besides Ambala, Kurukshetra, Faridabad, Bhiwani, Yamunanagar and Panchkula.

According to the MeT department, more rain or thundershowers are likely at few places in the States on Monday.

The maximum temperatures, which had been hovering in the range of 26-30 degrees at most places in the states and Chandigarh for the past 2-3 days, dropped on Sunday to settle in the range of 22-25 degrees Celsius.

Meanwhile, there were reports of damage to crops at some places in both Punjab and Haryana. High velocity duststorm had hit the regions on Saturday evening. The storm was accompanied by hail and heavy rain in a few areas. PTI

Poultry farmers asked to supplement Vitamin C in feed

Though temperatures have reduced, poultry farmers were asked to continue supplementation of Vitamin C and electrolytes through feed and drinking water to improve heat tolerance in birds.

A press release from Agromet Field Unit of Veterinary College and Research Institute and Regional Meteorological Centre, Chennai, said that the sky would be partly cloudy and remain dry in the next four days.

The maximum and minimum temperature was expected to be around 36 degree Celsius and 23 degree Celsius respectively.

The release said that the general cloudiness and evening wind would keep the maximum day-time low which would give relief to birds from heat stress.

However, farmers were asked to continue supplementing Vitamin C to improve tolerance in birds.

Credit plan envisages outflow of Rs. 7,050 crore

New thrust areas being social infrastructure and renewable energy sources

The Annual Credit Plan for Tirunelveli district for the next fiscal envisages an outflow of Rs. 7,050 crore, an increase of 17 per cent over the current year and against Rs. 7,313.91 crore estimated in Nabard’s Potential Linked Credit Plan (PLP).

Collector M. Karunakaran released the Annual Credit Plan at the Collectorate here on Friday.

The Indian Overseas Bank, the lead bank of the district, which has prepared the ACP has taken into account various parameters aspects such as the Nabard’s PLP, past performance, schemes of State and Central governments, special area development projects, new thrust areas such as social infrastructure and renewable energy sources.

The ACP has given thrust to all sectors and employment generation activities in agriculture, services and industries sectors. Provision has also been made for sanction of government schemes under various sectors. In Agriculture, term loan lending has been given importance to the tune of 35 per cent to increase the capital assets of farmers.

For the development of new sectors such as social infrastructure and renewable source of energy, Rs. 150 crore has been allocated for installation of windmills, solar lights, solar-powered pumpsets, schools, sanitation and drinking water facilities.

While major share of the credit plan has been taken by Indian Overseas Bank (20 per cent), Pandyan Grama Bank (15.48 per cent), Canara Bank

(12.89 per cent), Tamilnad Mercantile Bank (8.86 per cent) and State Bank of India (8.83 per cent) and a few more banks have also assured to ensure significant credit outflow.

Chief Regional Manager of Indian Overseas Bank and Convener of District Consultative Committee S.C. Mohanta; K. Ramalingam, AGM, Nabard; H. Vijayakumar, Project Director, DRDA; Raja Jeyabala, Project Director, Mahalir Thittam; and S. Alagarsamy, Lead District Manager, participated in the meeting.

Four ‘extinct’ plant species rediscovered

The rediscovered plants, Impatiens concinna, Impatiens sasidharanii, Impatiens sasidharanii var hirsute and Impatiens neo-modesta, are found to have great medicinal value.

'Impatiens concinna,' 'Impatiens sasidharanii,' 'Impatiens neo-modesta', and 'Impatiens sasidharanii var hirsuta' have great medicinal values.

Four species of Impatiens (Kasi Thumba) plants believed to have gone extinct were rediscovered from the Western Ghats recently.

A team of researchers led by K.M. Prabhukumar and Indira Balachandran, taxonomist and director respectively of the Centre for Medicinal Plants Research, Kottakkal Arya Vaidya Sala, made the rediscovery

during explorations at Dhoni Hills of Palakkad and Nelliampathy.

The rediscovered plants, Impatiens concinna, Impatiens sasidharanii, Impatiens neo-modesta , andImpatiens sasidharanii var hirsuta , were found to have great medicinal values.

Dr. Prabhukumar said that the Impatiens varieties of plants were found largely in tropical Asian and African regions. The four rediscovered species were believed to have gone extinct many decades ago. These plants were heavily dependent on the tropical rains. “It is possible that any slight change in weather could sound the death knell for these plants. They are so sensitive to climate,” he said.

According to the researchers, these plants, usually found 2,000 ft above sea level, are short-lived and will be seen only one quarter of a year.

Dr. Prabhukumar said that Impatiens concinna , found 6,000 ft above sea level, was discovered first time in Kerala. In an article published in the Current Science , the plant has been described as critically endangered.

Two other Impatiens species found from Nelliampathy forests have been named after N. Sasidharan, former scientist of the Kerala Forest Research Institute. They were published in a recent issue of thePhytotaxa , published from New Zealand.

Impatiens neo-modesta was found from the peaks of Nelliampathy recently. The findings were published in the Italian journal Webbia: Journal of Plant Taxonomy and Geography.

Concern over climate change

Expressing concern over the climate change, Dr. Indira and Dr. Prabhukumar said that special efforts had to be taken to conserve the new species of plants.

They were assisted by P.E. Sreejith, M.G. Prasad, A. Kabeer, V.S. Hareesh, V.B. Sreekumar, and T.K. Nirmesh.

Rare finds at Shendurney sanctuary survey

Yellow browed bulbul and Blue Admiral butterfly identified during a survey of fauna organised in the Shendurney Wildlife Sanctuary recently. Presence of 176 species of butterfly recorded in 171-sq.km. sanctuary

At a survey of fauna in the Shendurney Wildlife Sanctuary, a butterfly species, Tufted White Royal, was recorded for the first time in the State.

The survey, jointly organised by the Forest Department and the Travancore Natural History Society (TNHS) a few weeks ago, recorded the presence of 176 species of butterfly in the 171-sq.km. sanctuary.

Kalesh S. Sadasivan, public relations officer of TNHS, the large number of species in the sanctuary during the dry spell reflected the biodiversity of the region. The new species will be added to the checklist of Kerala butterflies, he added.

Around 40 experts and enthusiasts of the field representing various institutions including the National Centre for Biological Sciences, Indian Institute of Science, Education and Research, and non-governmental organisations took part in the exercise.

The survey was formally launched by the wildlife warden of the sanctuary A. Shanavas. To survey the entire area within the sanctuary, the facility was divided into eight sub-units with a base camp being established in each of them.

While the largest butterfly in India, Southern birdwing was recorded by almost all the sub-units, the smallest butterfly, Grass jewel, was seen in one among them. The survey also found 16 of the 39 endemic species in the Western Ghats. These are not found anywhere else in the world, the experts said.

Other interesting records that were made included Malabar Rose, Malabar Banded Swallow tail, Malabar Raven, Spot Puffin, Lesser Albatross, Red Disc Bush Brown, Malabar Tree Nymph, White Hedge blue and Rosy Oakblue.

Birds

As many as 150 species of birds were also recorded in the region. Two, Painted Stork and Malabar Pied Hornbill, were detected for the first time in the sanctuary, according to birdwatcher K.B. Sanjayan, who was part of the team. The other birds found included Lesser Fish Eagle, Shahin Falcon, River tern, Nilgiri Woodpigeon, Malabar Parakeet, Malabar trogon, Malabar grey hornbill, Great Indian Hornbill, White-rumped Shama, Wayanad laughing Thrush, Blanford’s Laughing Thrush, Nilgiri Flycatcher, Tickell’s Flowerpecker, Small Sunbird and White-bellied

Treepie.

CAG report: Akhilesh govt ‘inept’ in implementing social schemes The report, which was tabled in the state Assembly on Sunday, cornered the SP government for its alleged inept handling of schemes. The Comptroller and Auditor General of India (CAG), in its report on general and social sectors for the year that ended in March 2015, has raised fingers over the alleged failure of the ruling Samajwadi Party government in implementing several major schemes in Uttar Pradesh. The report, which was tabled in the state Assembly on Sunday, cornered the SP government for its alleged inept handling of schemes like the Pradhan Mantri Gram Sadak Yojna, mid-day meal, procurement of paddy and Criminal Tracking Network and Systems (CCTNS) for controlling crime, among others. Pradhan Mantri Gram Sadak Yojna According to the report, the Pradhan Mantri Gram Sadak Yojna was launched in December 2000 with 100 per cent funding from the Union government. During 2010-15, Rs 3557.25 crore was given to the state for its implementation. The report added that the state government did not ensure speedy execution of projects, due to which, 40 to 74 per cent of the funds remained unspent at the end of each financial year from 2010 to 2013. It also mentioned that due to lack of coordination among various executing agencies, the construction of 502 rural roads — worth Rs 302.10 crore — proposed under PMGSY were executed by non-designated departments. This resulted in the Centre not funding the projects. Planning for the implementation of PMGSY in the state was deficient as the District Rural Road Plan was not prepared, the CAG said. During 2010-15, against the target of construction of 1,723 new and upgradation of 1,888 roads, 978 new roads (57 per cent) were constructed

and 1,209 (64 per cent) upgraded. Thus, 745 less new roads (43 per cent) were constructed and 679 (36 per cent) were not upgraded. As many as 60 per cent of the selected works, worth Rs 143.15 crore, were declared complete without constructing drainage structures, thus defeating the primary objective of PMGSY to provide all-weather roads. Mid-day Meal The mid-day meal (MDM) scheme was launched by the Centre in 1995. Expenditure of Rs 7226.65 crore was incurred for the scheme during 2010-15. The CAG reports stated that due to lack of proper management of funds, the unspent amount rose from Rs 336.58 crore in 2010-11 to 598.96 crore in 2014-15. Against the Supreme Court directives to provide mid-day meals for an average 200 days in a year, 56,257 schools provided MDM for an average 102 days during 2010-15. Nearly 802 schools still remain to be covered under the scheme. Despite the MDM scheme, enrolment of students in primary schools had decreased from 1.59 crore in 2010-11 to 1.34 crore in 2014-15. The decrease ranged between 1.55 per cent to 7.03 per cent per year. Moreover, micronutrient supplementation was not provided to children in schools. Against an allocation of 16.95 lakh MT of foodgrain during 2010-15, the state lifted only 13.83 lakh MT, resulting in disruption of the scheme. In 10 districts where audit took place, excess payment of Rs 12.74 crore was made to transport foodgrain and Rs 3.19 crore to kotedars. As many as 21 per cent of the schools did not have kitchen-cum-stores and 42 per cent did not have LPG connections. CCTNS The ambitious CCTNS also failed to take off in the state. The CAG report stated that the project initiated during 2009-10 — with an allocation of Rs 113.78 crore — by the Centre could not be completed on time. This, even after 19 months of the schedule date of completion, which was February 2014.

Post metric fee reimbursement Under the scheme, according to the CAG report, a reimbursement of fee of Rs 10.24 crore was claimed by students in 20,198 cases using same income, caste and high school certificates. Uttar Pradesh Janhit Guarantee Adhiniyam The SP government also failed in the implementation of Uttar Pradesh Janhit Guarantee Adhiniyam-2011. The services of 31 out of 93 departments under the state were not covered under the Act even after four years of its enactment. Paddy Procurement According to the report, the regional food controller failed to achieve targets for paddy procurement during 2012-15 with the shortfall ranging between 12 and 70 per cent. As many as 96,981 MT less paddy was handed over to the central pool. Due to lack of monitoring, customised milled rice (CMR) — worth Rs 7.23 crore — were not recovered from private millers. Also, holding charge of Rs 6.30 crore were not levied from them. Moreover, CMR of state government agencies worth Rs 16.11 crore was not delivered by millers. No effective action was taken against the defaulting millers. Medical Care The main tertiary medical care centre, Sanjay Gandhi Post Graduate Institute of Medical Sciences, exhibited shortage of medical and para-medical staff, adversely impacting the quality of treatment and patient care. The institute did not maintain a centralised waitlist for patients. Agriculture In agriculture, use of excess supplies and substandard hybrid seeds — procured for sale to farmers under 100 per cent subsidy schemes — led to wasteful expenditure of Rs 1.11 crore.

Education In basic education department, construction works of 17 KGBVs were awarded to an ineligible construction agency. Failure to monitor the project resulted in unfruitful expenditure of Rs 5.40 crore on the construction of substandard school buildings. Irrigation Non-acquisition of 1123.63 hectares required for reservoir and construction of canal system led to unfruitful expenditure of Rs 416.67 crore on the construction of Kachnaudha dam in Lalipur. Unfruitful expenditure of Rs 53.81 crore was also incurred due to inadequate planning, designing and execution of Bewar feeder project. Prison Construction of jail building in Sonbhadra without ensuring availability of sufficient ground water led to unfruitful expenditure of Rs 17.64 crore. A trauma care centre in Agra, established at the cost of Rs 1.89 crore under the centrally sponsored scheme, could not be made operational for the last four years as the state government has not sanctioned posts of medical officers.

Vice President wants `Grow in India’ for agriculture

The Vice President, M Hamid Ansari wants a “Grow in India” programme to transform the socio-economic fabric of the agricultural sector.

Delivering the keynote address at the National Seminar on ‘Public Investment and Subsidies on Agricultural Inputs and the Upliftment of Agrarian Economy’, organized by the All India Kisan Sabha here on Saturday, Ansari said the government needs to take bold steps to translate the good intentions into action to tackle the deficiencies in farming.

The Vice President said that the enhanced public expenditure in agriculture - in the form of increased investments, rather than un-targeted subsidies - is

required to bring about technical change in agriculture, and higher agricultural growth.

Hamid Ansari, Vice-President He observed that small farms are weak in terms of generating adequate income and sustaining livelihood. Their participation in agricultural market remains low due to a range of constraints such as low volumes, high transaction costs, lack of markets and information access, he added.

Ansari said that we need a social corrective along with the economic correctives to redress these challenges in development of rural sector. Mere infusion of funds might not be enough unless the underlying social gaps and divisions remain in place, he added.

The Vice-President felt the centrality of Agriculture in the socio-economic fabric of India is self evident and almost half of the workforce in India still remains dependent on it. He said that the issue of farmer’s suicides is certainly a complex one but it brings into sharp focus the stresses that the agricultural sector in India is now subject to.

‘To lure youth, make farming economically rewarding’

M. S. Swaminathan “To make farming attractive to the youth, it should be technologically upgraded and made economically rewarding,” says MS Swaminathan, Founder, MS Swaminathan Research Foundation.

Addressing an agricultural conference organised by the Confederation of Indian Industry, Swaminathan said income is one of the major factors that attract youngsters, whose contribution is essential for the farming community. “In order to increase the income productivity should be improved and it requires effective technological intervention at an affordable cost,” he said.

He added that precision farming will help farmers enhance productivity with available resources.

KV Rao, Chief General Manager, National Bank for Agriculture and Rural Development (Nabard), said though farm subsidies and crop loans are available, most of the farmers are unaware of them. “Nabard is taking steps in educating small and marginal farming communities rather than individuals through promotional schemes,” he added.

S Chandramohan, President and Group Chief Financial Officer, TAFE Limited, said farmers should diversify into producing edible oil and pulses, which India imports in huge volumes. “By having edible oil and pulses as thrust area, it is possible to reduce our import dependency,” he added.

Online fish marketing start-up aims for pan-India presence

Buyfish.in launchesMangaluru operations

The Bengaluru-based online fish marketing start-up – Sashimi Foods Pvt Ltd, which markets fish on buyfish.in – is planning to have pan-India presence by March 2017.

In an informal chat with Business Line on the sidelines of ‘Mathsya Mela’ (fish festival) in Mangaluru on Friday, Kedarnath Reddy, founder and director of Sashimi Foods Pvt Ltd, said the company is serving customers through its web and app platforms in Bengaluru.

Expansion The start-up, which was launched in 2013, opened its Mangaluru operations on Friday. It will begin operations in Mumbai by April.

He said that the customers can place the order for the fish on the web or app platform of buyfish.in, and it will be delivered to at the doorstep.

In the case of web platform, the buyer has to enter the PIN code of the area. The website will show the availability of fish in that area. The mobile app picks the location of the customers on its own, and will display the products available in that area only. The start-up provides value-added services such as cleaning and marinating of fish.

Reddy that the company has 40 suppliers – both farmers and boat owners – across east and west coasts. “We source each fish from different landing centres that got prominent availability, and then we deliver using this web platform,” he said.

Delivery On delivery models, he said it delivers fish through its own delivery channels and through affiliates. In Bengaluru, it delivers fish through its own delivery channel.

In Mangaluru, it has taken the help of its affiliate – Karnataka Fisheries Development Corporation (KFDC). It trains the affiliates on various parameters, including packing standards and cutting the fish.

To have pan-India presence, the company will have 20 affiliates for delivery across India and a network of farmers and boat owners for sourcing fish produce.

Staff strength

With staff strength of 27 people and other infrastructure such as cold storage and processing centre, the company serves around 1,800 customers in Bengaluru.

The start-up, which is a self-funded project, is doing an annual business of around ₹3.5 crore. As of now, it is handling 80-100 kg of fish a day with only Bengaluru as the market.

Prices edge down at Kochi tea auction

Prices of several high-priced teas were lower at the Kochi auctions despite blenders lending useful support to good liquoring varieties.

However, the decline in price was less for clean black well-made plainer, grainier varieties. There was some improvement in arrivals compared to last week, though the market was lower by ₹5 to ₹10 and sometimes more.

In sale no 10, the quantity on offer was 9,64,000 kg. The demand from exporters was subdued, the auctioneers Forbes, Ewart & Figgis said.

The market was irregular and lower in the orthodox varieties also and the quantity on offer was 8,500 kg. Exporters continued to be the mainstay of the market.

In the Cochin CTC dust quotation, good varieties quoted ₹103-139, mediums fetched ₹90-116 and plain grades stood at ₹86-96.

In the leaf sale, the market for select best Nilgiri brokens and whole leaf barely remained steady, while others were irregular and lower following quality. The quantity on offer was 133,000 kg. CIS and other exporters lent fair support.

In CTC grades, the quantity on offer was 73,500 kg. The market for bolder brokens sold around last levels, with upcountry buyers absorbing the bulk of the offerings.

In dust varieties, Injipara SFD quoted the best prices of ₹147, followed by Waterfall SFD at ₹145. In the leaf grades, Chamraj FOP-Sup (Green Tea) was at the top position quoting ₹336, followed by Havukal FOP at ₹301.

Short supply lifts spot pepper

The spot pepper moved up further on Friday on short supply amid good demand.

Interstate dealers having earlier commitments were covering actively and that in turn has pushed up the spot prices.

“What ever material arrives in the market is snatched away by interstate dealers”, market sources told Business Line.

Exporters were seen slow because of the easier Vietnamese trend, they said.

On the spot 18 tonnes of pepper were traded. Of these 4 tonnes were from Pathanamthitta district and the balance were from the high ranges.

According to the trade primary market dealers in Pulpally, Sulthan Battery, Mananthawady in Wayanad and Kattappana, Nedumkandam and Kumily in Idukki district were all despatching directly to upcountry markets. This

phenomenon in turn has squeezed the arrivals at the terminal market, they claimed.

Spot prices moved up by Rs200 a quintal to close at Rs62,000 (ungarbled) and Rs65,000 (garbled) a quintal.

March contract on the IPSTA however remained unchanged at Rs64,000 a quintal.

Indian export prices were at $9,850 a tonne cf for Europe and $10,100 a tonne cf for USA. e.o.m

Agri commodities get a mixed deal in budget

No relief on CTT, but the unified agri market may be game-changing Despite the considerable focus on the rural and agricultural sectors in the Budget, commodity market participants have been disappointed on a few fronts.

One major expectation was the removal of commodity transaction tax (CTT) which was introduced in July 2013, which hasn’t come about. Trading volumes on the bourses have dropped sharply in the last three years with the declines attributed to CTT, global commodity price declines and the NSEL crisis. Trading volume at the MCX has shrunk by a third in 2014-15 from its peak of ₹1.5 lakh crore in 2011-12. At the NCDEX, trading turnover has almost halved to ₹10 lakh crore in this period.

One also hoped that the Finance Minister would finally let financial institutions, including asset management companies, participate in

commodity futures. This would have broadened commodity market participation and helped check market manipulation by unscrupulous traders. Companies exposed to commodity price risks would be able to devise better hedging strategies. Analysts were also expecting that following the merger of FMC with SEBI, new products such as options and indices would be introduced.

Good moves

While these proposals were missing in the Budget, Arun Jaitley has proposed several other measures that have direct and indirect implications for commodity markets in general, and agri commodities in particular.

Plans to allow higher foreign direct investments (FDI) in commodity exchanges will provide additional resources to exchanges for improving infrastructure and upgrading technology. A comprehensive crop insurance scheme will encourage farmers to take on more risk in cultivation and produce those commodities which are demanded by the market rather than being guided by support and procurement prices. That would help in aligning supply with emerging demand patterns.

A sudden and sharp rise in the prices of specific agri-commodities often leads to knee-jerk reactions in the form of bans on futures trading. That impedes participation in commodity futures market as such actions usually result in real or notional financial losses to traders. Rising prices of pulses in the last couple of quarters are a red flag in this context. Therefore, increased Budget allocation for production, import and buffer stocking of pulses is expected to stabilise the prices of pulses, and pre-empt such risks.

The most important Budget proposal is undoubtedly the announcement on creation of a common and unified national electronic market platform that will phase out the role of middle-men in the sale and purchase of agri-commodities in government-regulated APMC mandis. It is hoped this will bring buyers and sellers across the length and breadth of the country in direct contact with each other.

At present, India’s markets for agri commodities are fragmented. That leads to high prices in some parts of the country facing supply shortages of a specific commodity, while there are price declines in other regions that have

excess supply. Speculators and black marketers exploit these situations at the cost of both consumers and farmers.

The creation of an interconnected and online marketplace will improve market transparency and lead to genuine price discovery in agri-commodity markets. That will reduce price volatility, bring in smaller market participants, increase trading volumes and make life difficult for market manipulators as it is markets with lower trading volumes that are prone to being manipulated.

The success of Karnataka in establishing a state-wide agricultural market by bringing in over 100 APMCs on a common platform gives the confidence that the idea of a common national market can work. Going forward, we may see substantially increased trading in agri commodities. No doubt, Budget 2016 is a big positive for agri-commodities. Removal of the CTT is another positive move that the government should consider for creating a vibrant commodity market.

The writer is Vice-President and Head Agriculture, Food and Retail at Biznomics Consulting

GMR shows industry and agriculture can co-exist in Odisha GMR Energy arm adopts farm-based livelihood work, provides 500 farmers with extra income by reusing their fallow land  

Adoption of farm-based livelihood activity is yielding encouraging results in the Dhenkanal district of Odisha, a proof that agriculture can co-exist harmoniously with industrialisation, GMR Kamalanga Energy Limited (GKEL) says.

"Through its novel venture, GKEL has set an example of harmonious co-existence of both industry and agriculture. People in and around our project areas realise that industry is not a threat to the farm sector... Rather, it promotes farming and allied activity," a company official said.

Following the initiative, over 100 acres have been cultivated and cash crops like groundnut and mustard raised along the Brahmani in Mangalpur, providing more than 500 farmers with extra income by reusing their fallow land, said officials of GKEL, an SPV of GMR Energy. Farmers are mainly into paddy cultivation using the SRI (System of Rice Intensification) methodology, which yields handsome returns. They have also been supported to take up vegetable cultivation in the area, the official said. "GKEL provides input support and training for growing SRI rice, fish farming, goat farming and poultry in the backyard. More than 1,000 families have benefited from the multiple livelihood support," said R Ravindranathan Nair, Director and Chief Operating Officer, GKEL. GKEL, which operates a 1,050-mw thermal power plant at Kamalanga, aims to "keep people in the surrounding happy".

Highlighting GKEL's CSR contribution, Nair said it has launched new initiatives towards sustainable livelihood of women with an emphasis on overall development and their empowerment and making them economically self-dependent. "By promoting women at the grassroots level, GKEL aims at inculcating a sense of entrepreneurship and self-dependency among them in the region," said Nair.

GKEL has also distributed health insurance policies to 2,500 members of the local community, he added.

Ill-timed rain deepens farmers' distress Though their intensity has been less so far and the exact impact on the crop is not yet known

It is that time of the year when farmers in north and central India worry incessantly of unseasonal rain and hail. As the weather offices had predicted, these have resurfaced in the last few days.

Though their intensity has been less so far and the exact impact on the crop is not yet known.

The India Meteorological Department had predicted isolated incidents of rain, squall and mild thunderstorms over parts of Punjab, Haryana, western Uttar Pradesh (UP) and Madhya Pradesh. It has already been intermittently raining in parts of Maharashtra for some days and in Rajasthan. "In the next three days, rain and hailstorms would continue in parts of Punjab, Haryana, Delhi and west UP. Thereafter, the trough will shift towards eastern India. In Maharashtra, the intensity of rain will peter out in the next few days," said G P Sharma, vice-president at Skymet Weather Services. He said mild hail at isolated places in the north might not have a big impact on the standing wheat and mustard crop, but if the showers are heavy, it might. "The rains would reappear from March 11 and last till March 14," Sharma added. In 2015, the standing crop on 19 million hectares was damaged due to unseasonal rain and hail in almost all parts of north and central India. These started around the same time, the end of February to early March. Though, it did not have much of an impact on the final output, it did aggravate distress in rural India. P K Joshi, South Asia director at the International Food Policy Research Institute, said mild showers could, in fact, be good for the standing wheat

crop in north and central India. However, if accompanied by heavy hailstorm, as had happened last year, it might damage the crop. By the second advance estimate of foodgrain production, India is expected to produce around 94 million tonnes (mt) of wheat in the current rabi season, about seven mt more than last year. Mustard production is expected at 6.83 mt, marginally more than last year.

Water mnagement centre for Koraput farmers

Koraput: To train farmers and office-bearers of pani panchayats about optimum use of water and land resources, the Water and Land Management Institute (WALMI) will open its second campus at Jeypore in Koraput district. At present, the WALMI has only one campus in Cuttack. "Jeypore campus will work as a branch of the main campus. We are hopeful of starting the institute from April," said Akshay Kumar Banerjee, chief construction engineer, Upper Kolab Project, Bariniput. The authorities have started renovating old buildings belonging to the water resources department at Jeypore to be used as training hall and hostel for farmers at the time of their training. According to the officer, once the institute starts functioning it will be of a great help to farmers as they will be imparted training on various issues related to water and land management. At present, farmers are being sent to Cuttack for training and they often express their unwillingness to travel such a long distance, Banerjee said. Officials said the institute will provide consultancy services to farmers, publish literature, hold seminars and workshops related to water management and land development. The institute will go a long way in studying and experimenting with organizational and procedural changes for effective management of irrigated agriculture, he said.

Farmers of the region have hailed the government's decision. "By getting proper training on better management of water and land we can increase our yield," said farmer Krushna Behera of Phampuni village. Farmers worried as rain, hailstorm damage crops

JAIPUR/JAISALMER: Current spell of rain and hailstorm in parts of Rajasthan raised the fears of kharif crop loss among farmers. Crops of mustard, cumin and isabgol (psyllium husk) in Jaislamer, Jodhpur, Sikar and Jhunjhunu, have witnessed significant damages. With sudden change in weather, crops in Pokhran sub-division of Jaisalmer faced massive damages. Adding to the woes of farmers, the turnaround in weather came when the crops were ripe and ready for harvest. To assess the situation, MP Gajendra Singh Shekhawat along with MLA Chotu Singh Bhati and district collector visited the affected places. "We took a stock of the losses and have assured farmers of all the needed help. Officers have been asked to carry out relief activities at the earliest and the issue would be raised at all the appropriate levels to facilitate the farmers for compensation," said Shekhawat. The state government too is monitoring the situation closely though it rejected the claims of massive losses. "Though no major calamity is reported so far and hailstorms are in patches, we are still keeping tab and will assess the actual losses soon," said Prabhulal Saini, agriculture minister. In Jodhpur and other parts of western Rajasthan, hailstorm and thunder showers also affected the Rabi crop. Places including Mathania and Phalodi were the worst affected. "If it continues, it is again going to be problematic," said Chotu Ram, a farmer at the Mathania village. Farmers in all parts of the state requested public representatives to help them.

PAU holds national-level group discussion on fruits

LUDHIANA: The inaugural function of 3rd National level group discussion of ICAR-AICRP on fruits (3rd to 6th March 2016) was held at Pal Auditorium, PAU. More than 45 centers from all over the country and about

200 horticultural scientists participated in the group discussion. The chief guest N K Krishna Kumar, DDG Horticultural Science, ICAR, New Delhi in his speech emphasized the need to control post harvest losses in fruits to increase profits as well as focus on virus free planting material propagated under protected conditions to avoid the spread of various pathogens. He also highlighted the need for development of complete package of practices for organic cultivation of the fruits. While chairing the event at the inaugural session, B S Dhillon, Vice chancellor, PAU, highlighted the importance of horticulture in employment generation and poverty alleviation in the country. He stressed on the need to expand the area under different maturity group-citrus fruits like Daisy and sweet oranges, as well as potential fruit crops like guava to realize better returns for fruit growers. He also spoke about good scope for grape wine sector under Punjab conditions. Guest of honour and Project Coordinator, Prakash Patil, read the achievements made by scientists. Suresh Kumar, additional chief secretary (development) Punjab emphasized on the key points for achieving diversification in Punjab.

Farmers see Budget 2016 as all promise, no delivery  The budget 2016 doubled spending on agriculture and farmers' welfare to $5.3 billion.

Last month, farmers went on the rampage in neighbouring Haryana state to protest a lack of economic opportunity Gazhiabad: Farmer Ram Pal Singh voted for Narendra Modi's promise of "better days" in India's 2014 general election, but he won't be backing the prime minister again even after last week's budget promised more aid to the countryside.

Growing discontent in rural India, home to two-thirds of the country's 1.3 billion people, bodes ill for Modi as he tries to bounce back from a heavy defeat in a state election last year in Bihar and build a support base to keep power in the 2019 general election.

In an eyecatching announcement, the budget doubled spending on agriculture and farmers' welfare to $5.3 billion in support of his promise that their incomes would double by 2022.

Yet critics say most of the extra spending is in fact an accounting entry that shifts the cost of an interest subsidy to the agriculture budget that was previously borne by the finance ministry.

"We have received nothing from the government. We don't even recover our costs," said Singh, whose 21-acre (8.5-hectare) plot is big by Indian standards.

Two failed monsoons, and sudden unseasonal rains, have caused widespread crop damage across northern India. Debt-laden farmers like Singh say low state purchase prices and a lack of compensation for crop losses are worsening their plight.

Singh lost $4,500 over the past two years because of severe damage to his wheat and sugarcane crops in the Ghaziabad district of Uttar Pradesh, 30 miles (50 km) east of New Delhi. It has left him with debts of more $10,000, and despair has driven him to think of selling his land.

"We have so much land but we still struggle to survive ... there is only sadness in farming," said Singh, 60, who does not want his grandchildren to work in the fields.

Last month, farmers went on the rampage in neighbouring Haryana state to protest a lack of economic opportunity. Thirty people died and saboteurs cut metropolitan Delhi's main water supply.

"The budget may give you an illusion the government has tried to address the problems faced by farmers," said independent food and trade policy analyst Devinder Sharma. He called instead for a package of "immediate assistance" to stop a spate of suicides by farmers from spreading.

Rural distress

Modi last year promised higher compensation for crop losses, but more than a dozen farmers interviewed by Reuters on a field trip said they had received no relief. Many have taken out more loans or sold cattle to tide themselves over.

All but one said they will not support Modi's Bharatiya Janata Party (BJP) in next year's poll in Uttar Pradesh, India's most populous state, home to 200 million people.

In 2014, the party swept Uttar Pradesh, winning 71 of 80 seats to claim the strongest parliamentary mandate in three decades. The budget play seemed designed to improve its standing in rural areas, traditionally a weak spot for the BJP.

"For the first time the agriculture sector has figured prominently in budget, and for the first time we've seen such a sharp rise in allocation for farmers' welfare," Farm Minister Radha Mohan Singh told a news conference.

But Jai Kisan Andolan, a peasants' rights movement, and 35 farming unions counter that the budget offered them no debt relief, and failed to hike either government farm purchase prices or crop-loss compensation rates."Most of what the budget speech projects as big favours to the farming community is actually 'business as usual' with a sleight of hand," the groups said in a statement after the budget.

In addition, the main effort to expand irrigation - adding just 2 percent of net cultivated area of 141 million hectares - is seen as piecemeal. And a new crop insurance scheme is expected to get off to a slow start.

"The government does not have a firm plan to address the rural crisis. They will have to pay a big political price for this," said Satish Misra, a political analyst at the Observer Research Foundation in New Delhi.

Traders and companies look to the sky with arrival of rains during harvesting period

The weather office has forecast rains accompanied with thundersquall with hail over the wheat, corn and mustard belt of north west and central India in the next 24 hours. NEW DELHI: The weather office has forecast rains accompanied with thundersquall with hail over the wheat, corn and mustard belt of north west and central India in the next 24 hours. This could come as a big blow to farmers who have started harvesting or whose crop is at the maturing stage. Traders said that they were watching the situation and expected a price movement in case the weather played truant. The current crop of wheat, mustard and corn was of superior quality compared to the previous year said traders and company officials. "Weather forecasts still show possibility of further hailstorms which can impact the standing wheat crop of Madhya Pradesh in some areas. The pipe lines of millers is dry and any delay in harvest due to rain and with possible damage to quality can lead to rise in prices in near future," said Rajiv Yadav, VP grains and oilseed, Noble Agri. Companies said that the next three weeks climate will play a critical role for the wheat, mustard, corn and pulses crop.

In Indore wheat spot prices were ruling at Rs 1550-1800 a quintal, said Kailash Goel of Riddhi Siddhi trading company. "The rains till now have not made any impact, but if it further rains then the farmer will get less prices up to Rs 25-50 a quintal as the shine of the grain will become dull. The arrivals of the grain to the mandis will also get delayed," he said. Similarly traders in Rajasthan where the mustard harvesting was going on were expecting yields to be higher than anticipated but were worried with new of anticipated rains. "Mustard prices in Jaipur mandi are at Rs 3700-4000 a quintal. Light rains will be not be a matter of concern, but heavy rains will be," said Anil Chattar of Mruda trading company in Jaipur. Rains over the past few days across Telangana's corn regions has caused crop lodging and damage in cob development stages and could possibly lead to damage of approximately 3 lakh tonne of standing winter corn said Yadav. "This can lead to delay in harvest and thus lead to short term price rally," he added. Vivek Puri, MD, Puri Oil Mills which sell mustard oil under the P Mark brand said that like last year, this year too, the untimely rains & hailstorm have damaged the crops at few places in Rajasthan and have raised concerns about the mustard crop output. "The crop which has been harvested and was lying at the fields is more likely to get damaged. Rajasthan is the highest producer of mustard and was expecting very good crop this year in spite of less sowing. The clear pictures will evolve over next few day. However, we are keeping our fingers crossed," he said. The India Meteorological Department in its 24 hours forecast on Saturday said that thundersquall accompanied with hail likely at isolated places over Jammu and Kashmir, Himachal Pradesh, Uttarakhand, Punjab, Rajasthan, Haryana, Chandigarh, Delhi, Madhya Pradesh, Uttar Pradesh and Maharashtra. From March 7-9 weather was expected to be clear across the

country. However, a fresh western disturbance was likely to affect western Himalayan region and plains of northwest India from March 11th night onwards. Rain accompanied with thundershowers were expected likely at few places over northeastern and south India. Thundersquall is thunderstorm accompanied with a sudden gust of wind often accompanied by rain. Budget proposal to lower ownership cost of water pumps to boost Shakti Pumps

The measures are likely to play a pivotal role in arresting the decline in volumes that the company is facing in the local market. At a time when farmers are going through a rough patch due to scanty rainfall for the second consecutive year, the measures proposed by the government in the Budget for 2016-17 to lower the ownership cost of a water pump are expected to augur well for Shakti Pumps, the Madhya Pradesh-based manufacturer of stainless steel pumps. The measures are likely to play a pivotal role in arresting the decline in volumes that the company is facing in the local market. The domestic sales contributed more than two-thirds to its revenue in the December quarter. Nearly 65% of company's total sales originate from irrigation. Drought years impact the farmers' income in two ways. A lower income reduces their disposable income, and they are forced to make an additional

investment in water pump as well since the water table falls. The government's proposal to lower excise duty will bring down pump price and may enable farmers to buy pumps even when their income is shrinking. The rationale for a tax cut on the centrifugal pump is that the government intends to promote more efficient and technologically advanced water pumps. This will augment more business for the organised players, who account for nearly 55% of the total Indian pump market. The government's pump-priming for irrigation sector and the company's efforts to expand its retail presence will help Shakti PumpsBSE 4.82 % to drive its volume growth. In the next three-four years, the company targets to have a pan-India presence. At present, nearly 60% of the domestic revenues are derived from western and central India. In addition, the company is planning to manufacture an entire spectrum of water-related pumps such as sewage pumps and high-power industrial pumps, making its product mix much richer. The combination of volume growth and improvement in share of value-added pumps will boost its average realisation per unit. At the end of the December quarter, the company's average realisation per pump stood at Rs 20,000. The company is currently operating at a capacity utilisation of 50%, with operating margins of 16-17%. Its margins may improve as volume growth trickles down and reduces its average fixed cost per unit. The other opportunity that the company is striving to grab are the sizeable orders for solar pumps. The government is procuring solar pumps for farmers through competitive bidding. Solar pumps constitute a high-margin segment as each piece is sold at about Rs 5 lakh. The only caveat is that orders for solar pumps have to undergo multiple layers of government machinery. Since 50-55% of the price is subsidised by the government, the company runs the risk of significant slippages and procedural delays. The Maharashtra government issued a tender to procure 9,000 solar pumps last year, but it has still not seen the light of the day. Beyond India, Shakti Pumps is expanding into new markets such as South America, US, Canada and Africa to offset the decline in sales from the West Asian markets.