Voluntary Report - public distribution

**Date:** 10/1/2004

**GAIN Report Number:** IN4109

IN4109

**India**

**Agricultural Situation**

**Weekly Highlights & Hot Bites, #38**

**2004**

**Approved by:**

![](media/image1.wmf)Chad R. Russell

U.S. Embassy, New Delhi

**Prepared by:**

A. Govindan, Santosh Kr. Singh, V. Shunmugam

**Report Highlights:**

\*Dairy industry seeks new position at WTO\*, \*Poultry import ban to
stay until December 2004, as bird flu fears linger\*, \*Food & Beverage
growth pegged at 10 percent\*, \*Bt cotton may be introduced in Punjab
next year\*, \*Rasi seeds forays into Bt contract farming\*.

Includes PSD Changes: No

Includes Trade Matrix: No

Unscheduled Report

New Delhi \[IN1\]

\[IN\]

Welcome to Hot Bites from India, a weekly summary of issues of interest
to the U.S. agricultural community. The report includes information that
has been garnered during travel within India, reported in the local
media, or offered by host country officials and agricultural analysts.
Press articles are included in this report. Significant issues will be
expanded upon in subsequent reports from this office.

DISCLAIMER: Any press summary contained herein does NOT reflect USDA's,
the U.S. Embassy's, or any other U.S. Government agency's point of view
or official policy.

**DAIRY INDUSTRY SEEKS NEW POSITION AT WTO**

The 33rd Dairy Industry Conference recently held in Delhi recommended
that India renegotiate its WTO bound tariff on skimmed milk powder and
butter oil to check unnecessary imports. It suggested that efforts
should be directed toward raising the bound tariff to 100 percent for
both the products from the existing bound rate of 60 percent for skimmed
milk powder and 40 percent for butter oil. The conference also
recommended that the government take advantage of special safeguard
measures to stop imports. (Source: Business Standard, 09/29/04)

### 

**POULTRY IMPORT BAN TO STAY UNTIL DECEMBER 2004, AS BIRD FLU FEARS
LINGER**

Quoting industry officials, this article claims that poultry products
import ban would be extended by the Indian government until the end of
December 2004, following reports of more incidents of Highly Pathogenic
Avian Influenza (HPAI) in South East Asian countries. In August,
however, the ban was lifted for a few poultry and pork products for
those countries that have reported free from HPAI. (Source: Financial
Express, 9/27/04)

*Post Comment:* Following widespread incidents of HPAI across South East
Asian countries, the Government of India banned imports of all poultry
and pork products from all origins for a period of six months ending
August 2, 2004 (see IN4010). With pressure from the domestic lobby and
exporting countries, the GOI exempted certain products from HPAI-free
countries from the ban, while continuing the ban on other products for a
period of six months (i.e. February 5, 2005) or until such time it is
withdrawn (see IN4086). Industry sources predict that the ban will not
be withdrawn until December 2004.

### 

### FOOD & BEVERAGE GROWTH PEGGED AT 10 PERCENT

A study by the Federation of Indian Chambers of Commerce and Industry
(FICCI) estimates growth in the food and beverage sector in FY 2004 at
ten percent. With the changing consumer lifestyles and rising disposable
income of the middle class, branded and convenience foods are gaining
popularity, with the market for these products growing annually at 10-15
percent. Semi-processed and ready-to-eat foods are growing by 20
percent. However, the study pertains mostly to urban areas, and not much
of the rural areas, the latter of which account for over 70 percent of
the country's population. (Source: Financial Express, 9/27/04)

### BT COTTON MAY BE INTRODUCED IN PUNJAB NEXT YEAR

The central government may soon give its approval for cultivation of Bt
cotton in North India (Punjab, Haryana and Rajasthan). An official from
the Punjab Agriculture University (PAU) stated that results of various
field trials of Bt cotton in the state were encouraging and
environmentally friendly. PAU has recommended approval to the central
government. (Source: Tribune, 9/29/04)

**RASI SEEDS FORAYS INTO BT CONTRACT FARMING**

Rasi Seeds Private Limited, a leading provider of hybrid and Bt
cottonseeds in Southern India, has initiated contract farming in the
state of Tamil Nadu with its first approved Bt cottonseed variety RCH
2Bt. Two commercial banks, two yarn manufacturers, the State Agriculture
Department, and other service providers also plan to participate in this
venture. The company is planning to increase the area under contract
farming from the current level of 2,400 hectares to 4,000 hectares
during the next season. (Source: Business Line, 9/29/04)

# RECENT REPORTS SUBMITTED BY FAS/NEW DELHI

  ----------- --------------------------------------- -------------------
  **REPORT    **SUBJECT**                             **DATE SUBMITTED**
  \#**                                                

  IN4102      Weekly Highlights & Hot Bites, #37      09/24/04

  IN4103      India - Exporter Guide                  09/30/04

  IN4104      India -- Promotion Opportunities Annual 10/01/04

  IN4105      Oilseeds Trade Data - September         10/01/04

  IN4106      India -- Sugar Semi-annual              10/01/04

  IN4107      Grain & Feed Update - October           10/01/04

  IN4108      Oilseeds Update -- October              10/01/04
  ----------- --------------------------------------- -------------------

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