Voluntary Report - public distribution

**Date:** 10/10/2003

**GAIN Report Number:** IN3095

IN3095

**India**

**Agricultural Situation**

**Weekly Highlights & Hot Bites, No. 41**

**2003**

**Approved by:**

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

U.S. Embassy, FASNEWDELHI

**Prepared by:**

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

**Report Highlights:**

\*New malls reflect rise of India\'s middle class\*, \*EU water norms
for finished beverages will be tough to follow\*, \*MNCs sniff money in
hybrid rice: DuPont aims at doubling market share, puts in place new
strategy\*, \*Study confirms superiority of Bt cotton in fighting
pests\*, \*India signs FTA with Thailand\*, \*Asian Biotech Consortium
for fostering cooperation\*.

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.

## NEW MALLS REFLECT RISE OF INDIA\'S MIDDLE CLASS

More than a decade after India's initiation of economic reforms of the
1990\'s, a virtual retailing revolution has hit the nation, with more
than 50 shopping malls opening up in cities like New Delhi and Mumbai.
Traditionally, Indians shopped at dusty neighborhood stores crammed with
unattractively packaged products. The growth in the number of shopping
malls is fueled by a growing (10-12 percent per annum) middle class and
raging consumerism. The metropolitan Gurgaon, about 30 kilometers south
of Delhi, is perhaps the most dramatic reflection of this trend. Gurgaon
has developed into a sprawling middle class city with innumerable
multi-story complexes housing software companies, multinational call
centers, and their professionals. Since January 2003, three malls have
opened, two across the street from one another. A decade ago India
didn\'t have even a single mall. According to a consulting firm, more
than 250 malls are expected to open for business in the next two years.
(Source: Herald Tribune 10/04-5/03)

EU WATER NORMS FOR FINISHED BEVERAGES WILL BE TOUGH TO FOLLOW

According to the officials of the beverage industry, the Ministry of
Health and Family Welfare's draft rules pertaining to pesticide limits
for beverages, as notified on August 26, would be tough to meet for
most, if not for all, manufacturers of domestic and imported beverages.
According to industry sources, the draft notification effectively
applies EU drinking water standards to finished beverages, including
fruit juices. Industry sources also mentioned that the EU and WHO do not
apply the drinking water pesticide residue standards to finished
beverages, and this recent notification would be "unprecedented and
counter" to international norms. (Source: Business Line 10/02/03)

*Post Comments*: Please refer to GAIN report \# IN3085 for further
details about this notification.

MNCS SNIFF MONEY IN HYBRID RICE: DUPONT AIMS AT DOUBLING MARKET SHARE,
PUTS IN PLACE NEW STRATEGY

With about 44 million hectares under rice cultivation, the total Indian
market for hybrid rice seeds is estimated at \$900 million.
Consequently, India has become a stop on the map of global players in
rice -- Bayer Aventis, Monsanto, Syngenta, and DuPont. With a number of
hybrid rice varieties in its fold, the US based multinational company
(MNC) DuPont believes that it can double its market share by
aggressively focusing on rice. DuPont's seed subsidiary Pioneer-India is
already depending on rice for almost half of its revenue. Equally aware
of the attractive market for rice hybrids, other MNCs such as Monsanto
and Syngenta are also trying to catch up with this new technology.
(Source: Economic Times 10/02/03)

# STUDY CONFIRMS SUPERIORITY OF BT COTTON IN FIGHTING PESTS

A comparative study of Bt cotton and conventional varieties conducted by
the University of Agriculture in Dharwad (Karnataka State) revealed that
the cultivation of Bt cotton results in better control of pests with a
reduced number of pesticide applications. The study further said that
the Bt cotton cultivation resulted in lower costs to farmers due to
lower pesticide applications and increased profitability boosted by
better yields. Commenting on the findings, the principal investigator
said that they were confident in their study and convinced that Bt
cotton plays a significant role in alleviating farmers' woes. The study
also established that to reap the maximum benefit from Bt cotton, it has
to be cultivated in isolation from normal cotton or other hybrids. This
ensures better pest resistance and increased yield. (Source: Business
Standard 10/09/03)

# INDIA SIGNS FTA WITH THAILAND

India and Thailand signed a free trade agreement (FTA) and four other
accords for enhancing cooperation in agriculture, tourism, science, and
biotechnology. The FTA will provide a free trade area in goods to begin
by 2010 and in services from 2006. "This is the first such agreement
that we have signed with an Asean country. It is our conviction that it
will profoundly transform our bilateral economic relations," The Indian
Prime Minister told a special session of the Thai Parliament. The two
countries, which had \$1.2 billion in trade last year, agreed to slash
tariffs on 84 items, ranging from farm and canned food products to
jewelry, air conditioners, and auto parts. (Source: Business Line,
Business Standard, 10/10/03)

# ASIAN BIOTECH CONSORTIUM FOR FOSTERING COOPERATION

The Indian Department of Biotechnology is setting up an Asian
Biotechnology Consortium in Delhi to foster increased cooperation among
the Asia Cooperation Dialogue (ACD) countries. Twenty-two Asian
countries will come together for the consortium under the ACD, which was
launched in Cha-am, Thailand, in June 2002. It is reported that India
agreed to take the lead in establishing the consortium. (Source:
Financial Express 10/10/03)

**RECENT REPORTS SUBMITTED BY FAS/NEW DELHI**

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

  IN3093      Weekly Highlights & Hot Bites, #40      10/03/03

  IN3094      Cotton Update - October                 10/07/03
  ----------- --------------------------------------- -------------------

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