Finland keen on funding small agri-biz units in developing nations

Hindu Business Line - Hyderabad, Oct. 29

The Agri-Business Incubator (ABI), International Crops Research Institute for the Semi-Arid-Tropics (ICRISAT), has joined hands with Information for Development (InfoDev) of the World Bank Group, Government of Finland, and Nokia for agri-business incubation.

The development came during the concluding day of the meeting of Community of Practices (CoP) here on Thursday. Established within the framework of the ‘Creating Sustainable Businesses in the Knowledge Economy' project, InfoDev's agri-business CoP was launched at a kick-off meeting organised jointly by ICRISAT and InfoDev, during the three-day meet.

More for Developing Nations

“Our financing support will further increase in the coming years for agri-business through ICRISAT, as Finland is now keen on more funding for agri-business in the developing countries. Since 2002, Finland has been extending overseas assistance to countries in Africa, Asia, and Latin America in various areas, but not substantially for agri-business, which we now intend to change,” said Mr Pekka Puustinen, Deputy Director General, Ministry for Foreign Affairs of Finland.

OBJECTIVES

“The meeting brought together more than 50 participants from 15 different countries, with the objectives to understand the key challenges and opportunities for agri-business in developing countries and emerging markets, and to share successful incubator models that have supported and graduated successful agribusiness SMEs (small and medium enterprises),” said Mr Steve Giddings, Consultant, Incubator Initiative, InfoDev.

Dr William Dar, Director General, ICRISAT, informed that a Global Agri-Business Incubation Conference would be held at ICRISAT, Hyderabad, from February 7 to February 9, 2011, where CoP implementation would also be reviewed. The conference would be followed by another agri-business conference in Helsinki, Finland, during May-June 2011.

The meeting culminated in the development of InfoDev's agribusiness Community of Practice's (CoP) preliminary work plan and deliverables for 2010-2012.

Buhler to offer high-speed rice milling machines - Focusing on grain warehousing technology also

Hindu Business Line dt 30/10/2010

Swiss grains processing technology major – Buhler is eyeing a Rs 1,000 crore-plus turnover from its Indian operations by 2014.

“For the current calendar year, we expect to do business of Rs 450 crore. This, we hope to more than double and cross Rs 1,000 crore in the next four years”, Mr Dipak Mane, Managing Director, Buhler (India) Pvt Ltd, told presspersons here on Friday.

More than half of the 1.8 billion Swiss Franc (Rs 8,100 crore) company's sales in India are from supply of rice milling and colour sorting plants. The rest is accounted for by flour and feed milling, die-casting, pasta, and chocolate plants.

From 10% to over 50%


“Since starting our operations here in 1991, we have installed over 200 complete rice mills, which covers engineering and supplying the entire basic plant and machinery for cleaning, de-stoning, hulling, whitening (bran removal) and polishing. This apart, we have supplied equipment for individual sections from whitening and polishing to grading and colour sorting,” noted Mr Mane.

Around 20 years back, hardly 10 per cent of the paddy produced in the country was being processed in modern mills, capable of handling at least five tonnes an hour. That proportion, according to Mr Mane, has now crossed 50 per cent, even as the country's (actually the world's) largest rice mill at Dhuri in Punjab, belonging to KRBL Ltd, has a capacity of 150 tonnes/hour.

“When we began, the industry standard for single milling lines was five tonnes/hour. Today, it is 8-10 tonnes/hour. From next year, we will be offering 15-20 tonnes/hour lines,” he said, adding that Buhler has a 25 per cent share in the domestic market for rice milling and colour sorting equipment.

Buhler also claims to have a 50 per cent share of the country's wheat flour milling plant market, which is, however, smaller in comparison to rice mills. Of the 75 million tonnes of wheat that is produced in the country, only about 15 million tonnes is processed in roller flour mills, with 60 tonnes/day or more capacity. The bulk, 80 per cent, is milled in ordinary chakkis or stone grinders.

The other area that Buhler is focussing on — following its recent global acquisition of Schmidt-Seeger, a Germany company — is grain warehousing technology. Schmidt-Seeger supplied the entire handling, drying and storage systems for Adani Agri Logistics's 6,30,000-tonne grain terminals, set up under a BOO (Build, Own, Operate) contract with the Food Corporation of India

Ringing in a revolution

http://www.business-standard.com/india/news/indicus-analytics-ringing-inrevolution/412896/

The rollout of telecom services has been phenomenal over the past few years. Tele-density has shot up from around 9 per cent in 2005 to 57 per cent in August 2010, with more than 15 million mobile phone subscribers added every month over the past year. The rise in the number of mobile or wireless subscribers has been accompanied by a decline in landline or wireline connections, since people are giving up what once used to be a much sought-after phone connection. Tele-density in the wireline and wireless segments was at similar levels of about 4 per cent coverage each in 2005; according to latest estimates for August 2010 while wireline tele-density is 3.02 per cent, wireless tele-density stands at 56.61 per cent.

There are, of course, certain caveats to celebrating this rise, e.g. in metros, many people would have multiple prepaid connections to their name. This makes comparison across states problematic, especially when we see a near-200 per cent tele-density in Delhi-NCR service area and then compare it to the lowest figure of around 32 per cent in Assam, Bihar and Jharkhand.


Rural India, of course, lags the cities. While rural tele-density has risen by 10 percentage points over the year to touch 25 per cent by June 2010, urban tele-density is up 47 percentage points over the same period year, at 120 per cent. Rural tele-density is highest in Himachal Pradesh, Kerala, Punjab and Haryana, while Madhya Pradesh and Bihar service areas, which include Chhattisgarh and Jharkhand, have the lowest rural tele-density rates of less than 20 per cent. The Universal Service Obligation Fund created in 2002 to create infrastructure in rural areas has not delivered as promised, despite telecom operators paying 5 per cent of annual revenues towards this fund.(Click here for table & graph)

Internet penetration is another measure of connectivity. The number of internet users is estimated at 81 million, according to International Telecommunications Union data; and the Telecom Regulatory Authority of India sets the number of broadband subscribers at 10.08 million in August 2010. The government programme of setting up Common Service Centres (CSC), one for every six villages, was launched in 2006, to facilitate e-governance, education, health, telemedicine and other services, through a private-public partnership. The scheme is close to its target of covering all villages by March 2011; as of August 2010, 20 states have a more than 70 per cent rollout, three states have crossed the halfway mark and the remainder have more than half their target to cover. Though there are many success stories from around the country, there are also many glitches — while Haryana reports 100 per cent CSC rollout, 561 out of the 1,159 CSCs are non-operational due to termination of the service centre agency. The situation is similar in some other states, so the actual rollout is different from the number stated.

Connectivity is set to expand across the country, especially with the mobile phone enabling internet access; however, despite the telecom sector being one of the fastest-growing sectors in India, there is ample scope and urgent need for reform and transparency. It is a no-brainer that the future lies in ICT (information and communication technology), the faster and more complete the coverage, the better the prospects for inclusive growth and development.

Indian States Development Scorecard is a weekly feature by Indicus Analytics that focuses on the progress in India and the states across various socio-economic parameters.
sumita@indicus.net

Rosaiah calls for white revolution

The Hindu dt.28/10/10

HYDERABAD: Chief Minister K. Rosaiah said here on Wednesday that a subsidy of Rs.15,000 would be provided to mini dairies as part of efforts to step up milk production in the State.

Addressing a convention of ‘Gopalamithras' after inaugurating a vaccine production facility of the Veterinary Biological Research Institute (VBRI), he said AP was currently in the second position in milk production and there was a need for collective effort to make it attain the first spot. Currently AP topped in egg production ( 104 lakh MTs) and in meat output ( 6.80 lakh MTs) and contributed nearly 16 per cent of the meat production in the country.

Budget increased

Emphasising the important role played by livestock in improving the rural economy, he said the State budget for Animal Husbandry sector went up from Rs.200 crore to Rs.400 crore in the last six years.

Pointing out that the milk productivity of buffaloes in advanced countries was 16 litres per animal per day, he said it was only around 3 to 4 litres in the State and called for efforts to enhance it. As part of livestock development measures, the Government had initiated special schemes like pasu kranthi, sheep and cattle insurance, mass sheep and goat de-worming and foot and mouth disease control programme.

Honorarium enhanced

Minister for Animal Husbandry K. Partha Saradhi said steps were on to enhance the milk productivity of buffaloes in the State through artificial insemination.

He said the Government had recently enhanced the honorarium of Gopalamithras from Rs.1200 to Rs.2,000.

Director of Animal Husbandry M.V. Reddy, said that currently there were 3177 Gopalamithras and their number would be enhanced to 4,500 in a week.

Bumper output may cause foodgrain glut: Rosaiah

Hindu Businessline - Hyderabad, Oct. 18
With Andhra Pradesh poised to register a record foodgrain output of about 207 lakh tonnes, potentially resulting in a glut in the market, it plans to seek the Centre's support for more storage space and free movement of rice.
The State Government will present a memorandum to the Prime Minister, Dr Manmohan Singh, seeking Centre's assistance in ensuring that farmers do not get affected by lack of takers due to shortage of godown space.
The State is considering the prospect of allowing export of foodgrain with a cap of about 25 per cent of the produce, according to the State Chief Minister, Mr K. Rosaiah.
The rice millers association in the State has been protesting seeking Government permission to export part of the foodgrain produce.
This was earlier banned as the prices of rice had shot up. They have refused to pick up fresh stocks from market yards.
Addressing a press conference on Monday, Mr Rosaiah said the bountiful monsoon is poised to result in a record foodgrain output of 207 lakh tonnes, during kharif and rabi crop seasons. This could mean total rice output of about 148 lakh tonnes, which is significantly higher than what the storage space can potentially accommodate.
The storage space of all facilities, including that of the Food Corporation of India, Central Warehousing Corporation and other State agencies, are simply inadequate to tackle such a foodgrain output. “We have been representing with the Centre and FCI for additional godown space and have been pleading with the FCI and Railways to help evacuate more stocks,” he said.
However, all these measures are proving to be inadequate. Therefore, the State plans to submit a memorandum to the Prime Minister, Dr Manmohan Singh, the Chief Minister explained.
The State Government is pursuing with the Railway authorities to see that about seven rakes are deployed which would help evacuate more foodgrain from the market yards.
Given this backdrop, the State could consider allowing export of foodgrains, particularly rice to other parts of the country. A meeting of all political parties has been convened to take this issue further, he said.

AP to introduce harvesters for groundnut

Businessline Hyderabad, Oct. 12

Andhra Pradesh will introduce mechanical harvesters to help resource-starved groundnut farmers. Mostly focussed in Anantapur district, farmers grow groundnut in 23 lakh acres.

“A Kolkata-based manufacturer has introduced a harvester for Rs 1.80 lakh. But farmers cannot afford to buy the machines at this price. We have asked the university (Acharya N.G. Ranga Agriculture University) to develop an affordable price of Rs 70,000. We will subsidise the machines when they are ready,” Mr N. Raghuveera Reddy, Minister for Agriculture, said.

Addressing a press conference here on Tuesday, he said the district, second only to Jaisalmer (Rajasthan) in terms of poor rainfall, had suffered drought in 74 years in the last 120 years

AP Grameena Vikas Bank to add 15 more branches by fiscal end

Courtesy: HIndu Business Line
Visakhapatnam, Oct. 10

The Andhra Pradesh Grameena Vikas Bank plans to add 15 more branches to the existing 539 in the State, according to the Bank's Chairman, Mr K. Lakshmana Rao.

He was speaking at the valedictory ceremony of a three-day home and vehicle loan expo organised by the bank on Sunday. He said the new branches would be opened before the end of the financial year. “A branch will be opened at Visalakshinagar here and one more at Gajuwaka,” he said.

Retail lending

Mr Lakshmana Rao said the bank wanted to increase retail lending to its customers.

At present, of the total advances of Rs 3,389 crore, retail loans amounted only to 10 per cent. “We want to focus more on the retail loans - home loans, personal loans, education loans and car loans,” he said.

He said the bank wanted to compete with commercial banks and offer all the facilities to the customers. “Our main strength is the large rural customer base. We will do our best to cater to their financial needs,” he added.

Mr V.N. Vishnu, the Commissioner of the Greater Visakhapatnam Municipal Corporation, who was the chief guest at the valedictory ceremony, urged the bank to strive for financial inclusion and to offer more loans to women's self-help groups, both in rural and urban areas.

He suggested that no-frill accounts be opened for those below the poverty line and such families should be offered a loan of at least Rs 25,000 without any security, he said.

Self-help groups

He promised to help the bank by depositing some of the funds of the GVMC in the bank, but the bank should lend liberally to the SHGs of women within the GVMC limits.

AP Transco to give 1.5 l new power connections to agri pump sets

Courtesy: HIndu Business Line
Hyderabad, Oct. 10

AP Transco, the power distribution utility of Andhra Pradesh, will give 1.5 lakh new power connections to agricultural pump sets in 2010-11. These connections would supply power free to farmers.

With the State receiving good rains this monsoon, Mr K. Rosaiah, Chief Minister, has asked the officials of AP Transco to strengthen connectivity in rural areas keeping in mind the upcoming rabi season, when farmers would need power to draw water. The State has targeted to cover one crore acres in the rabi season.

He asked the officials to provide the new connections by March 2011, from when the demand for power increases significantly.

The officials informed him that the utility had prepared an action plan to ensure reliable power supply, because generation has improved significantly as reservoirs received good inflows in the last few weeks, a Government release said here on Sunday.

The Chief Minister held a review meeting on Sunday with Mr S. V. Prasad, Chief Secretary, Mr Suthirtha Bhattacharya (Principal Secretary, Energy), and Mr Ajay Jain, Chairman and Managing Director of AP Transco, on the power situation in the State.

The Transco officials said that the State could reduce transmission losses to 18.51 per cent in 2009-10, one of the lowest in the country. “We have reduced the transmission losses by almost 50 per cent from 35 per cent in 2000-01. We could achieve this after implementation of technologies, monitoring systems, and continuous regulation of operations of distribution companies,” they said.

The Transco had also taken up an initiative to set up 21 220-kV and ten 132-kV substations at a total cost of Rs 1,155 crore for various lift irrigation schemes being executed by the Irrigation Department.

Nabard's SMS-based advisory service

Hindu Business Line.

The National Bank for Agriculture and Rural Development (Nabard) has launched a SMS-based crop advisory and information service to farmers, utilising the increasing penetration of mobile phone in the rural areas. Members of the watershed committees involved in the execution of projects under the Indo German Watershed Development Programme will also be covered under this service. The service will provide personalised and customised agricultural information covering crop advisory services, market prices and weather forecast to maximise the productivity and income of farmers. — Our Bureau

Why farmers don't want Bt brinjal?

SHG women use laptops for e-bookkeeping

Over 35,000 women from villages across Andhra Pradesh are now using laptops to record financial activities of their self-help groups (SHGs).

Making this possible is the Society for Elimination of Rural Poverty (Serp), which operates among the poor women through SHGs. The society conducted a pilot on e-bookkeeping in Bibinagar, a mandal in Nalgonda district where it trained these women in using laptops.

“The traditional book keeping is viewed as drudgery,” says Y V Raghunadha Reddy, state project manager of Serp.

The members have to enter the savings of each SGH member, their loans, repayments, revolving funds, income and expenditure for the group activities and share capital of each of the SHG in a village organisation.

The data can be uploaded to the Serp server for statewide accounting and evaluation.

The success of the pilot project at Bibinagar prompted Serp to expand it to the rest of the state. Now, women from 35,000 village organisations have received laptops and the required training. “We conducted a training session of one week for these women in different districts. They are now able to operate the device and upload the data. We have selected the women who can identify English alphabets and are aware of terms such as income, expenditure, loan and repayment,” Reddy says.

Besides, the aim is to equip women with the latest technology and knowledge to enable them to earn more money for the family, he says.

The programme is sponsored by the World Bank. The laptops are owned by Serp, but are with the women.

AP target for rabi season

Businessline dt.5/10/10

Hyderabad, Oct.4

After achieving a record cropped area in the kharif season, the Andhra Pradesh Government has estimated a cover of 1.07 crore acres in the rabi season.

“We are going to distribute 12.16 lakh quintals of groundnut, red gram, maize, sunflower and paddy seeds with a total subsidy of Rs 168 crore,” Mr N Raghuveera Reddy, Andhra Pradesh Minister for Agriculture, said.

Addressing a press conference here after a review of kharif season and preparations for rabi, he said the Department had already made 2.31 lakh quintals of seed available in various districts.

The Union Government had allocated 35 lakh tonnes of fertilisers.

This was highest allocations for the State for any rabi season so far.

Disbursal target

The bankers in the State had been given a crop loan disbursal target of Rs 8,788 crore of crop loans and Rs 3,842 crore of term loans during the rabi season.

Meanwhile, the officials had put the loss to farmers in the kharif season at Rs 128 crore due to excess rains and inundation. In all, crop in an extent of 6.87 lakh acres was damaged across the State.

Those who lost crop in 2009 would get a total compensation of Rs 699 crore by the month end, the Minister said.