Indian Economy: News and Discussion

HariPrasad-1

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The point you are not getting. No they (needy farmer aren't exporting their crops directly, there are middlemen.
They destroying their crops because of lack of sales in some seasons is a different concern. But pulling small farmers out of poverty on the basis of their small scale farming is impractical because of nearly no profit, sometimes high losses and uncertainty of output.

There is a reason why world urbanised and agriculture was corporatised.
I am unable to get your logic. When Rs 1000 crore banana is exported, It is a well come step and it should happen in a larger way. Now you are finding the faults with that as well. If farmers has any other issues (And they have many), they should be addressed. How the export of 1000 crore of banana comes in way that you have to do arguments to counter it. You seem to be mixing different issues very badly.
 

HariPrasad-1

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On the ethanol front,
The country, on an average, has achieved a blending percentage of 7.36%, while 11 major states like Uttar Pradesh, Maharashtra, Karnataka, Uttarakhand, Bihar, Haryana, Punjab, Delhi, Goa, Gujarat and Himanchal Pradesh have achieved even higher blending percentage of up to 10%,
We must export the sugar so that it does not the price does not fall. If price falls, farmers will not get the advantage of their hard work and higher production.
 

SKC

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We must export the sugar so that it does not the price does not fall. If price falls, farmers will not get the advantage of their hard work and higher production.
You just cant complete in international market of Sugar. Brazil produces more sugar than us and sell much cheaper. Unless we give it on subsidy to other players we cant export high amount of it.
 

HariPrasad-1

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You just cant complete in international market of Sugar. Brazil produces more sugar than us and sell much cheaper. Unless we give it on subsidy to other players we cant export high amount of it.
I do not know that . However, Pakistan was about to give an order of Sugar import from India before a month but they took U turn. We should sell our sugar on quality if it is better. We can make jaggery and market it as well.
 

Indx TechStyle

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I am unable to get your logic. When Rs 1000 crore banana is exported, It is a well come step and it should happen in a larger way. Now you are finding the faults with that as well. If farmers has any other issues (And they have many), they should be addressed. How the export of 1000 crore of banana comes in way that you have to do arguments to counter it. You seem to be mixing different issues very badly.
What I've written in first post and later on too, sales don't translate into income and prosperity for small scale farmers due to middlemen. You are expecting improvement in condition of rural farmers since exports of fruits are going up.
 

Crazywithmath

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Anyone even with a basic economic understanding knows it. These things are only getting political attention; nothing more nothing less. Also correct me if I am wrong but as per the latest IMF projections if real growth and inflation are added then they have not actually surpassed India's gdp per capita even on nominal terms. The projection under discussion was an old one. Also BD's higher gni per capita is probably a coincidental anomaly which will not last long. Even there I doubt NSO data. As per their projections India's gni per capita is about $1950 ( pretty close I do not remember the actual data ) roughly equal to our nominal gdp per capita. Now this sounds absurd. For countries like India gni per capita should be considerably higher than gdp per capita. For instance BD even with a lower per capita nominal gdp is claiming to have a per capita gni of $2200. If one goes by the world bank website as of 1st July, 2019 India's gni (measured by Atlas method) per capita was way higher than that of BD. I know a lot of disruptions happened after that but this piece of data does not feel right; like something is off.
 

IndianYonko

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What I've written in first post and later on too, sales don't translate into income and prosperity for small scale farmers due to middlemen. You are expecting improvement in condition of rural farmers since exports of fruits are going up.
But it shows that at least farmers are able to sell in this pandemic.

As long as middleman exist farmers are not going to make much profit based on market.
 

Indx TechStyle

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But it shows that at least farmers are able to sell in this pandemic.
It won't make them prosper anyway. Unless small farmers have a district wise corporative system to share technology and raise funds or something like that, small scale farming can never be an efficient machine and will run on subsidies and funds from government. It's a decade away at least.
 

ezsasa

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But it shows that at least farmers are able to sell in this pandemic.

As long as middleman exist farmers are not going to make much profit based on market.
a bit more detail..

Traders attributed the surge in banana exports to demand from West Asian and North African countries. “The Philippines, which had a significant banana market share in Gulf countries, started to export more to China. This created a vacuum in the Gulf, which was filled by Indian fruit exporters. We dominate those markets now,” said Pankaj Khandelwal, chairman, INI Farms.
..
 

HariPrasad-1

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What I've written in first post and later on too, sales don't translate into income and prosperity for small scale farmers due to middlemen. You are expecting improvement in condition of rural farmers since exports of fruits are going up.
Whatever I had to explain, I have done it. I do not want to repeat those things again. Just check how large food grain export in Vajpayee ji's time helped farmers. Closed from my side.
 

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Whatever I had to explain, I have done it. I do not want to repeat those things again. Just check how large food grain export in Vajpayee ji's time helped farmers. Closed from my side.
Growth in his era were on account of improved infrastructure, logistics supply lines and adoption of mechanical methods due to increase in households income. Improved exports were result of it, not a cause.
 

sorcerer

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Crude oil production totals 2,493 TMT in April

IBEF: May 24, 2021


On Friday, the government announced that total crude oil production in April 2021 stood at 2,493 thousand metric tonnes (TMT), 1.16% more than the target.

According to a statement issued by the Ministry of Oil and Gas, the crude oil production of ONGC stood at 1,636.57 TMT, 1.81% more than the target. The production of Oil India stood at 242.74 TMT.

On the other hand, the crude oil production of private firms and joint ventures stood at 613.95 TMT in April 2021, 0.43% higher than the target

Crude oil processed in April 2021 stood at 19,884.70 TMT, an increase of 34.86% YoY and 1.82% more than the target of the month. The capacity utilization stood at 96.82%. Additionally, natural gas production was 2,651.49 million standard cubic meters (MMSCM), an increase of 22.68% YoY.
 

doreamon

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sorcerer

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India attracted highest ever total FDI inflow of US$ 81.72 billion during 2020-21, 10% more than the last financial year


Posted On: 24 MAY 2021 3:56PM by PIB Delhi



Measures taken by the Government on the fronts of Foreign Direct Investment (FDI) policy reforms, investment facilitation and ease of doing business have resulted in increased FDI inflows into the country. The following trends in India’s Foreign Direct Investment are an endorsement of its status as a preferred investment destination amongst global investors:





  • India has attracted highest ever total FDI inflow of US$ 81.72 billion during the financial year 2020-21 and it is 10% higher as compared to the last financial year 2019-20 (US$ 74.39 billion).




  • FDI equity inflow grew by 19% in the F.Y. 2020-21 (US$ 59.64 billion) compared to the previous year F.Y. 2019-20 (US$ 49.98 billion).




  • In terms of top investor countries, ‘Singapore’ is at the apex with 29%, followed by the U.S.A (23%) and Mauritius (9%) for the F.Y. 2020-21.




  • ‘Computer Software & Hardware’ has emerged as the top sector during F.Y. 2020-21 with around 44% share of the total FDI Equity inflow followed by Construction (Infrastructure) Activities (13%) and Services Sector (8%) respectively.




  • Under the sector `Computer Software & Hardware’, the major recipient states are Gujarat (78%), Karnataka (9%) and Delhi (5%) in F.Y. 2020-21.




  • Gujarat is the top recipient state during the F.Y. 2020-21 with 37% share of the total FDI Equity inflows followed by Maharashtra (27%) and Karnataka (13%).




  • Majority of the equity inflow of Gujarat has been reported in the sectors `Computer Software & Hardware’ (94%) and `Construction (Infrastructure) Activities’ (2%) during the F.Y. 2020-21.




  • The major sectors, namely Construction (Infrastructure) Activities, Computer Software & Hardware, Rubber Goods, Retail Trading, Drugs & Pharmaceuticals and Electrical Equipment have recorded more than 100% jump in equity during the F.Y. 2020-21 as compared to the previous year.




  • Out of top 10 countries, Saudi Arabia is the top investor in terms of percentage increase during F.Y. 2020-21. It invested US$ 2816.08 million in comparison to US$ 89.93 million reported in the previous financial year.




  • 227% and 44% increase recorded in FDI equity inflow from the USA & the UK respectively, during the F.Y. 2020-21 compared to F.Y.2019-20.
 

HariPrasad-1

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Growth in his era were on account of improved infrastructure, logistics supply lines and adoption of mechanical methods due to increase in households income. Improved exports were result of it, not a cause.
I specifically mentioned Food grain export and its benefits to farmers if you can read it.
 

sorcerer

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First consignment of GI certified Shahi Litchi from Bihar exported to the U.K


Posted On: 24 MAY 2021 6:08PM by PIB Delhi



In a major boost to export of GI certified products, season’s first consignment of Shahi Litchi from Bihar was exported to United Kingdom by air route today.The phyto-sanitary certification for exports of Shahi Litchiwas issued from newly established certification facility at Patna. The fruit is being exported by Cira Enterprises and sourced from farmers in Muzaffarpur, Bihar. The Litchi is being imported by H & J Veg, London.


APEDA collaborated with Department of Agriculture, Bihar along with other stakeholders such as farmers, exporters and importers for facilitating exports of Shahi Litchi. Senior officials including Dr. M Angamuthu, Chairman, APEDA, N. Saravana Kumar, Principal Secretary Agriculture, Bihar and others participated in the event for exports of Shai Litchi.


Because of short-shelf life of litchi, there is need to explore exports opportunities for the processed and value-added products.


Shahi litchi was the fourth agricultural products to get GI certification from Bihar in 2018, afterJardalu mango, Katarni rice and Magahi paan. GI registration for Shahi Litchi is held with the Muzaffarpur-based Litchi Growers Association of Bihar.


Muzzafarpur, Vaishali, Samastipur, Champaran, Begusarai districts and adjoining areas of Bihar have favorable climate for growing Shahi Litchi.


India is the second largest producer of litchi (Litchi chin) in the world, after China. The translucent, flavoured aril or edible flesh of the litchi is popular as a table fruit in India, while in China and Japan it is preferred in dried or canned form. Bihar tops in terms of production of litchi.


APEDA has been facilitating Bihar government in formulating State agri-export plan which would provide road-map for boosting agricultural and processed food products exports from the State. After the finalisation of State agri-export plan, the export potential of Makhana, mango, litchi and other fruits and vegetables can be harnessed.


Bihar government is making efforts in association with APEDA and other agencies for creating required infrastructures such as customs clearance facility, laboratory testing facility, pack-houses, pre-cooling facilities, which would harness and boost agricultural exports potential of the State.
 

indus

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What I've written in first post and later on too, sales don't translate into income and prosperity for small scale farmers due to middlemen. You are expecting improvement in condition of rural farmers since exports of fruits are going up.
Middlemen do extract their pound of flesh but its not exhorbitant in market driven commodities. @HariPrasad-1 is correct to an extent. Growth in agri trade, exports etc do support farmers also due to trickle down effect of economic cycle. For ex, arthiyas make good amount in FCI procurements bcuz its a monopolistic trade with the buyer FCI, having fixed price at MSP with an open house declared on purchase quantity. Since model is lopsided towards buyer they can creat windfall gains. But in case where trade is market driven suvh as export of foodgrains, fruits etc the middlemen cannot make windfall gains so easily. Export usually requires a particular grade/variety or quality parameters to be fulfilled. The farmers sell selected produce at a higher price than an average or below average quality produce which is not export worthy. Sometimes these middlemen take advance orders and create a pool of farmers who grow the crop as per desired quality level. So in general the fruits of exports are passed onto farmers to some extent. And in cases farmers form their own marketing channel the gains are multifold. A farmer whose crop was bought for export market would have fetched him a better price than the leftover produce he would have decided to sell in local market.
 

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