Voluntary Report - public distribution

**Date:** 1/23/2004

**GAIN Report Number:** IN4004

IN4004

**India**

**Agricultural Situation**

**Weekly Highlights & Hot Bites, #3**

**2004**

**Approved by:**

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

U.S. Embassy, FASNEWDELHI

**Prepared by:**

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

**Report Highlights:**

\*EU will support India\'s concern on agriculture\*, \*Traders not
pleased with mere export participation\*, \*Cheap farm imports will lead
to mass displacement: WSF\*, \*Bigger ICAR role in GM crops research
sought\*, \*Lankan company plans supermarkets in India\*.

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.

# EU WILL SUPPORT INDIA'S CONCERN ON AGRICULTURE

While in Delhi, European Union (EU) Trade Commissioner, Pascal Lamy,
assured Indian industry leaders that the EU will back India's concerns,
especially on the issue of agriculture, at the WTO negotiations. "EU now
has a positive approach towards concerns of developing countries.
Forthcoming negotiations in Geneva and Hong Kong will now proceed with
an understanding that developing countries' concerns will not be
overlooked," he said. Confederation of Indian Industry (CII) senior
advisor T.K. Bhowmik said the meeting with Mr. Lamy was very positive,
and it was likely that "the issue of trade-distorting subsidies in
agriculture in the EU will be resolved. But it is unlikely that the EU
will dilute its Common Agricultural Policy." (Source: Financial Express,
01/20/04)

# TRADERS NOT PLEASED WITH MERE EXPORT PARTICIPATION

The government views as "historic" its recent decision to allow private
trade in the foodgrain procurement and exports business. But traders
aren't as pleased. They argue that nothing will change on the ground
unless the state governments reform the agricultural marketing policy to
permit traders to procure directly from farmers. Existing state
legislations not only require that grain be sold by farmers in the
regulated *mandis* (market yards), but also that buyers should buy only
from a local *mandi* and should adhere to all the various storage
control orders at the state level. "There really aren't even the
vestiges of infrastructure in place on the ground to allow traders to
procure foodgrain directly for exports or to store them. Nor is there
likely to be any such infrastructure in place in the near future," a
leading rice exporter said. (Source: Economic Times, 01/22/03)

# CHEAP FARM IMPORTS WILL LEAD TO MASS DISPLACEMENT: WSF

At the World Social Forum 2004 in Mumbai, farmers and activists from
around the world said they oppose agriculture being included in the
World Trade Organization negotiations. Cheap farm imports could be
responsible for the displacement of the largest number of people in
India in the coming years, according to Mr. Devinder Sharma of the Forum
for Biotechnology and Food Security. "By 2010, the rural population
migrating to cities in India would be four times the population of the
United Kingdom", he said. (Source: Business Line, 01/18/04)

# BIGGER ICAR ROLE IN GM CROPS RESEARCH SOUGHT

Agricultural scientists are reportedly lobbying the government to
streamline testing and evaluation procedures for genetically engineered
crops to include a larger role for the Indian Council of Agricultural
Research (ICAR). Dr. R.S. Paroda, Chairman of a think-tank, Trust for
Advancement of Agricultural Sciences, said that they have come up with a
series of recommendations to this effect. He said that there are several
subjects of interest in agricultural biotech regulation that need
immediate attention: revising the Seed Act, encouraging public-private
partnership to develop and commercially exploit transgenics at a faster
pace, examining intellectual property rights issues, and establishing a
single point testing for genetically engineered crops for speedier
approval and more effective monitoring of trials and experiments.
(Source: Times of India 1/17/04)

# LANKAN COMPANY PLANS SUPERMARKETS IN INDIA

John Keels Holding Limited, Sri Lanka\'s largest private company, plans
to open supermarkets in India after it completes its plan to expand at
home. John Keels has 13 supermarket in Sri Lanka and plans to open 20
more this year. Keels looks to tap into the Indian market with
assistance from an Indian partner. India has become more accessible to
Sri Lankan businesses after the two countries signed a free trade
agreement. (Source: Business Line 1/20/04)

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

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

  IN4003      Weekly Highlights & Hot Bites, #2       01/16/04
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