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$adminprix = 'admin' $rn = object(App\Model\Entity\Article) { 'id' => (int) 17712, 'title' => 'Like US, agriculture ministry needs a wing to collate dependable farm data-Tejinder Narang', 'subheading' => '', 'description' => '<div style="text-align: justify"> -The Economic Times </div> <div style="text-align: justify"> <br /> </div> <div style="text-align: justify"> The fear of drought in India has abated with late precipitation of the monsoon in September this year. However, the country continues to suffer from a drought of formalised tabulated data of agro items on a real-time or monthly basis, though many estimates continue to fatigue the print and electronic media. </div> <div style="text-align: justify"> <br /> </div> <div style="text-align: justify"> Red or green prices flashing on computer screens are taken for 'granted', but the discovery of future or spot values is an extremely complex algorithm of world's weather phenomenon, crop conditions, macro-status of supply or demand, stocks in hand, export or import presumptions, local or sea freight rates, speculation, domestic and international financial parameters and so on. </div> <div style="text-align: justify"> <br /> </div> <div style="text-align: justify"> Agriculture and allied activities, valued at $252 billion, represent 14% of India's GDP of $1.8 trillion. India exports around 25 million tonnes and imports around 14 million tonnes of agro commodities every year. Also, domestic consumption of grains, pulses, oilseeds and sugar is around 255 million tonnes. </div> <div style="text-align: justify"> <br /> </div> <div style="text-align: justify"> So, the country certainly needs latest tools in data collation and publication. This year, all major countries that produce or trade in rice, wheat, corn, sugar, edible oil, pulses and even Indian traders are closely watching the country's roller-coaster ride from the perceived drought to an expected normalisation of output to strategise their businesses. </div> <div style="text-align: justify"> <br /> </div> <div style="text-align: justify"> The point is, existing stocks or production get consumed and new supplies arrive in recurring cycles with corresponding volatility in values. If the data is comprehensively captured with full transparency, dynamic movements can be understood and interpreted. The government can take rational, rather than emotional, counter-cyclical measures, while trade can also position itself with the fundamentals of the market. </div> <div style="text-align: justify"> <br /> </div> <div style="text-align: justify"> As of now, fragmented data is available with multiple agencies such as the ministry of agriculture, department of food and consumer affairs, Directorate General of Foreign Trade (DGFT), Director General of Central Statistics of India, Customs, Railways and the meteorological department. </div> <div style="text-align: justify"> <br /> </div> <div style="text-align: justify"> The government also collates data from many associations, such as the Indian Sugar Mills Association for sugar and the Solvent Extractors' Association of India for oilseeds, meal and oil. The Food Corporation of India's records is the data source on rice and wheat stocks, while stocks in the local market are guesstimates or arrived through deductive analogies. </div> <div style="text-align: justify"> <br /> </div> <div style="text-align: justify"> Industry and government estimates vary on the output of cane or sugar or oilseeds. In 2009-10, the country's sugar output was raised from 15 million tonnes to 19 million tonnes, reflecting the shocking ignorance about a 27% variation. Hence, domestic prices plunged to unreasonable limits. </div> <div style="text-align: justify"> <br /> </div> <div style="text-align: justify"> This year too, consensus on sugar output and carry-in stocks remains elusive. Likewise, in March 2012, the DGFT banned cotton exports by cancelling valid registrations due to confusion over surpluses for exports. Rice export was banned for four years (2007-11) following a fear syndrome over possible shortages. In fact, India has not imported rice for the last two decades. </div> <div style="text-align: justify"> <br /> </div> <div style="text-align: justify"> While data on the quantum of import of edible oils and pulses is available with the customs department, the need is to put this in public domain. Price realisation by farmers for paddy, wheat (in non-procurement zones of FCI), pulses, seeds, cotton and so on are unavailable in public domain. However, trading houses and newswires generate many private reports. </div> <div style="text-align: justify"> <br /> </div> <div style="text-align: justify"> Indian policymakers need to emulate and simulate the World Agriculture Supply Demand Estimates (WASDE) reports released by the US department of agriculture (USDA) periodically (between 8th and 12th day every month). It is a comprehensive compendium of production based on crop conditions (supply), projection of consumption (local demand), exports, imports, yields, carry-in and -out stocks of all countries prepared, based on interactions between farm experts, economists and foreign trade specialists for wheat, rice, corn, cotton, maize, soy, soy meal, soy oil and so on. </div> <div style="text-align: justify"> <br /> </div> <div style="text-align: justify"> WASDE reports enable price direction worldwide for hedgers (producers and traders) and non-hedgers (speculators). Bullish or bearish sentiments are largely in sync with this report, though many traders may not agree with USDA assessments. Even if the reports appear less than true, say, for this month, they are subject to adjustments next month as events unfold contrary to reports. </div> <div style="text-align: justify"> <br /> </div> <div style="text-align: justify"> Secretive China is also compelled to consider USDA publications to initiate its purchases and sales from different continents. The largest and the oldest agro exchange in Chicago, CBOT, takes cues from this report for price discovery. This report also empowers the US to quietly apply its soft power to manage the world's markets, rather than undertake any political price management domestically or internationally. </div> <div style="text-align: justify"> <br /> </div> <div style="text-align: justify"> The ministry of agriculture with assistance of an inter-ministerial panel, NCDEX, NCMSL or any other consultancy firm may dedicate a department for collection, interpretation and dissemination of Indian agro-produce to publish monthly Indian Supply-Demand Estimate (ISADE) report. The government can release such a report in the middle of each month. </div> <div style="text-align: justify"> <br /> </div> <div style="text-align: justify"> The price action on Indian future exchanges, NCDEX and MCX, and spot markets will reflect more price transparency. Decisions for regulating imports, exports or intervention through minimum support prices or duty regulation will be based on authorised facts rather than informal figures floating from other agencies. World over, agro prices will silently feel the ripples of Indian data based on these monthly releases. Publication of officially-verified data now is not just a necessity but a compulsion. </div> <div style="text-align: justify"> <br /> </div> <div style="text-align: justify"> <em>(The author is a commodity analyst) </em> </div>', 'credit_writer' => 'The Economic Times, 25 October, 2012, http://articles.economictimes.indiatimes.com/2012-10-25/news/34729762_1_sugar-output-rice-export-indian-sugar-mills-association', 'article_img' => '', 'article_img_thumb' => '', 'status' => (int) 1, 'show_on_home' => (int) 1, 'lang' => 'EN', 'category_id' => (int) 16, 'tag_keyword' => '', 'seo_url' => 'like-us-agriculture-ministry-needs-a-wing-to-collate-dependable-farm-data-tejinder-narang-17841', 'meta_title' => null, 'meta_keywords' => null, 'meta_description' => null, 'noindex' => (int) 0, 'publish_date' => object(Cake\I18n\FrozenDate) {}, 'most_visit_section_id' => null, 'article_big_img' => null, 'liveid' => (int) 17841, 'created' => object(Cake\I18n\FrozenTime) {}, 'modified' => object(Cake\I18n\FrozenTime) {}, 'edate' => '', 'category' => object(App\Model\Entity\Category) {}, '[new]' => false, '[accessible]' => [ '*' => true, 'id' => false ], '[dirty]' => [], '[original]' => [], '[virtual]' => [], '[hasErrors]' => false, '[errors]' => [], '[invalid]' => [], '[repository]' => 'Articles' } $imgtag = false $imgURL = 'The Economic Times, 25 October, 2012, http://articles.economictimes.indiatimes.com/2012-10-25/news/34729762_1_sugar-output-rice-export-indian-sugar-mills-association' $titleText = 'Like US, agriculture ministry needs a wing to collate dependable farm data-Tejinder Narang' $descText = ' -The Economic Times The fear of drought in India has abated with late precipitation of the monsoon in September this year. 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$adminprix = 'admin' $rn = object(App\Model\Entity\Article) { 'id' => (int) 17712, 'title' => 'Like US, agriculture ministry needs a wing to collate dependable farm data-Tejinder Narang', 'subheading' => '', 'description' => '<div style="text-align: justify"> -The Economic Times </div> <div style="text-align: justify"> <br /> </div> <div style="text-align: justify"> The fear of drought in India has abated with late precipitation of the monsoon in September this year. However, the country continues to suffer from a drought of formalised tabulated data of agro items on a real-time or monthly basis, though many estimates continue to fatigue the print and electronic media. </div> <div style="text-align: justify"> <br /> </div> <div style="text-align: justify"> Red or green prices flashing on computer screens are taken for 'granted', but the discovery of future or spot values is an extremely complex algorithm of world's weather phenomenon, crop conditions, macro-status of supply or demand, stocks in hand, export or import presumptions, local or sea freight rates, speculation, domestic and international financial parameters and so on. </div> <div style="text-align: justify"> <br /> </div> <div style="text-align: justify"> Agriculture and allied activities, valued at $252 billion, represent 14% of India's GDP of $1.8 trillion. India exports around 25 million tonnes and imports around 14 million tonnes of agro commodities every year. Also, domestic consumption of grains, pulses, oilseeds and sugar is around 255 million tonnes. </div> <div style="text-align: justify"> <br /> </div> <div style="text-align: justify"> So, the country certainly needs latest tools in data collation and publication. This year, all major countries that produce or trade in rice, wheat, corn, sugar, edible oil, pulses and even Indian traders are closely watching the country's roller-coaster ride from the perceived drought to an expected normalisation of output to strategise their businesses. </div> <div style="text-align: justify"> <br /> </div> <div style="text-align: justify"> The point is, existing stocks or production get consumed and new supplies arrive in recurring cycles with corresponding volatility in values. If the data is comprehensively captured with full transparency, dynamic movements can be understood and interpreted. The government can take rational, rather than emotional, counter-cyclical measures, while trade can also position itself with the fundamentals of the market. </div> <div style="text-align: justify"> <br /> </div> <div style="text-align: justify"> As of now, fragmented data is available with multiple agencies such as the ministry of agriculture, department of food and consumer affairs, Directorate General of Foreign Trade (DGFT), Director General of Central Statistics of India, Customs, Railways and the meteorological department. </div> <div style="text-align: justify"> <br /> </div> <div style="text-align: justify"> The government also collates data from many associations, such as the Indian Sugar Mills Association for sugar and the Solvent Extractors' Association of India for oilseeds, meal and oil. The Food Corporation of India's records is the data source on rice and wheat stocks, while stocks in the local market are guesstimates or arrived through deductive analogies. </div> <div style="text-align: justify"> <br /> </div> <div style="text-align: justify"> Industry and government estimates vary on the output of cane or sugar or oilseeds. In 2009-10, the country's sugar output was raised from 15 million tonnes to 19 million tonnes, reflecting the shocking ignorance about a 27% variation. Hence, domestic prices plunged to unreasonable limits. </div> <div style="text-align: justify"> <br /> </div> <div style="text-align: justify"> This year too, consensus on sugar output and carry-in stocks remains elusive. Likewise, in March 2012, the DGFT banned cotton exports by cancelling valid registrations due to confusion over surpluses for exports. Rice export was banned for four years (2007-11) following a fear syndrome over possible shortages. In fact, India has not imported rice for the last two decades. </div> <div style="text-align: justify"> <br /> </div> <div style="text-align: justify"> While data on the quantum of import of edible oils and pulses is available with the customs department, the need is to put this in public domain. Price realisation by farmers for paddy, wheat (in non-procurement zones of FCI), pulses, seeds, cotton and so on are unavailable in public domain. However, trading houses and newswires generate many private reports. </div> <div style="text-align: justify"> <br /> </div> <div style="text-align: justify"> Indian policymakers need to emulate and simulate the World Agriculture Supply Demand Estimates (WASDE) reports released by the US department of agriculture (USDA) periodically (between 8th and 12th day every month). It is a comprehensive compendium of production based on crop conditions (supply), projection of consumption (local demand), exports, imports, yields, carry-in and -out stocks of all countries prepared, based on interactions between farm experts, economists and foreign trade specialists for wheat, rice, corn, cotton, maize, soy, soy meal, soy oil and so on. </div> <div style="text-align: justify"> <br /> </div> <div style="text-align: justify"> WASDE reports enable price direction worldwide for hedgers (producers and traders) and non-hedgers (speculators). Bullish or bearish sentiments are largely in sync with this report, though many traders may not agree with USDA assessments. Even if the reports appear less than true, say, for this month, they are subject to adjustments next month as events unfold contrary to reports. </div> <div style="text-align: justify"> <br /> </div> <div style="text-align: justify"> Secretive China is also compelled to consider USDA publications to initiate its purchases and sales from different continents. The largest and the oldest agro exchange in Chicago, CBOT, takes cues from this report for price discovery. This report also empowers the US to quietly apply its soft power to manage the world's markets, rather than undertake any political price management domestically or internationally. </div> <div style="text-align: justify"> <br /> </div> <div style="text-align: justify"> The ministry of agriculture with assistance of an inter-ministerial panel, NCDEX, NCMSL or any other consultancy firm may dedicate a department for collection, interpretation and dissemination of Indian agro-produce to publish monthly Indian Supply-Demand Estimate (ISADE) report. The government can release such a report in the middle of each month. </div> <div style="text-align: justify"> <br /> </div> <div style="text-align: justify"> The price action on Indian future exchanges, NCDEX and MCX, and spot markets will reflect more price transparency. Decisions for regulating imports, exports or intervention through minimum support prices or duty regulation will be based on authorised facts rather than informal figures floating from other agencies. World over, agro prices will silently feel the ripples of Indian data based on these monthly releases. Publication of officially-verified data now is not just a necessity but a compulsion. </div> <div style="text-align: justify"> <br /> </div> <div style="text-align: justify"> <em>(The author is a commodity analyst) </em> </div>', 'credit_writer' => 'The Economic Times, 25 October, 2012, http://articles.economictimes.indiatimes.com/2012-10-25/news/34729762_1_sugar-output-rice-export-indian-sugar-mills-association', 'article_img' => '', 'article_img_thumb' => '', 'status' => (int) 1, 'show_on_home' => (int) 1, 'lang' => 'EN', 'category_id' => (int) 16, 'tag_keyword' => '', 'seo_url' => 'like-us-agriculture-ministry-needs-a-wing-to-collate-dependable-farm-data-tejinder-narang-17841', 'meta_title' => null, 'meta_keywords' => null, 'meta_description' => null, 'noindex' => (int) 0, 'publish_date' => object(Cake\I18n\FrozenDate) {}, 'most_visit_section_id' => null, 'article_big_img' => null, 'liveid' => (int) 17841, 'created' => object(Cake\I18n\FrozenTime) {}, 'modified' => object(Cake\I18n\FrozenTime) {}, 'edate' => '', 'category' => object(App\Model\Entity\Category) {}, '[new]' => false, '[accessible]' => [ '*' => true, 'id' => false ], '[dirty]' => [], '[original]' => [], '[virtual]' => [], '[hasErrors]' => false, '[errors]' => [], '[invalid]' => [], '[repository]' => 'Articles' } $imgtag = false $imgURL = 'The Economic Times, 25 October, 2012, http://articles.economictimes.indiatimes.com/2012-10-25/news/34729762_1_sugar-output-rice-export-indian-sugar-mills-association' $titleText = null $descText = ' -The Economic Times The fear of drought in India has abated with late precipitation of the monsoon in September this year. However, the country continues to suffer from a drought of formalised tabulated data of agro items on a real-time or monthly basis, though many estimates continue to fatigue the print and electronic media. 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