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Indian Farmers And Biofuel


International cotton prices came down from 128 cents /lb in 1981 to 38.7 US cents /lb in 2002. ... Cotton was exported at an average price of 47 % below. ... – PowerPoint PPT presentation

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Title: Indian Farmers And Biofuel

Indian Farmers And Biofuel
By Parvathy Thualaseedharan Sailaja
  • Agriculture is one of the most
  • prominent sectors in Indias
  • economy
  • It accounts for 18.6 of the GDP
  • Employed 60 of the country's
  • population .

  • It accounts for 8.56  of Indias exports
  • 43  of India's geographical area is used for
    agricultural activity
  • Average yield in India is generally 30 to 50
    of the highest average yield in the world

Trend of output of cereals and major foodgrains
(in thousands of tonnes)
Composition of India's total production
Problems faced by Indian Farmers
  • Illiteracy, general socio-economic backwardness,
    reforms and inadequate or inefficient finance and
    marketing services
  • The average size of land holdings is very small
    (less than 20,000 m²) and are subject to

  • Inadequate adoption of modern agricultural
    practices and tecnologies
  • Inadequate Irrigation facilities only 53.6 of
    the land was irrigated in 2001
  • Farmers still being dependent on rainfall,
    specifically the Monsoon season.

Indian Farmers and WTO
  • WTOs Agreement on Agriculture protects subsidies
    in the developed countries and allows them to
    dump cheap commodities
  • They are sold at a rate well below the cost of
    production of indian farmers.
  • Decline in domestic agriculture prices and has
    deepened the agrarian crisis in rural India.

Price Decilne
  • World prices for 18 major export commodities fell
    by 25 in real terms.
  • Decline was especially steep for
  • Cotton (47)
  • Coffee (64)
  • Rice (61)
  • Cocoa (71)
  • Sugar (77).

  • For example
  • International cotton prices came down from 128
    cents /lb in 1981 to 38.7 US cents /lb in 2002.
  • Rice prices came down from 565 US/tonne in 1981
    to 160.8 US/tonne in 2002
  • Sugar prices came down from 18.11 US cents /lb in
    1981 to 5.68 US cents /lb in 2002

  • Key agricultural goods having the minimum applied
    tariff which include pulses 10, Maize 15, milk
    powder 15

Import in thousands of tonnes
Agriculture exports from US were sold much below
the cost of production
  • Wheat was exported at an average price of 28
  • Cotton was exported at an average price of 47
  • Rice was exported at an average price of 26

  • Import tariff was 113 in 1990-91
  • 35 in 1997-98
  • 41 in 2001-02,
  • 2004-2005 the average applied tariff is 37.5
  • Average applied tariff rate in 2004-05 is almost
    65 lower than the average applied rate in

  • The dumping of these agricultural commodities led
    to depression in the domestic farmgate prices,
    which led to a deep agrarian crisis and caused
    increased cases of farmers suicides because
    farmers fail to get even their principal capital
    investment in agriculture.
  • The crisis in Indian agriculture is evident from
    farmers suicides in every corner of the country
    and since 1995 more than 25000 farmers brethren
    have committed suicides all over the country

Over 50,000 Farmers Protest Against WTO
  • On October 2, 2005, more than 50,000 farmers from
    14 states of India participated in a huge Rally
    against WTO in Mumbai
  • Their demands were-
  • To take out agriculture from the purview of the
  • Increase in the import duty on agricultural
  • Reinstating Quantitative Restrictions

  • Take away anti-farmer policies of the Government
    of India like
  • Seed Bill 2004,
  • The Food Safety and Standards Bill 2004
  • The National Agriculture Policy encouraging
    contract farming,
  • The dismantling of the Public Distribution System

  • Withdrawal of Minimum Support Price for the most
    of the commodities
  • The dismantling of the government procurement
  • The reversal of the land reforms for MNCs and
    agro-businesses, the setting up of the private
    mandis by ITC and Cargill, and the free import of
    seeds and plant materials.

Ways to improve the farmers condition
  • State government is providing money for settling
    the farmers debts.
  • Money is also given for the economic
    rehabilitation of family of farmers who
    committed suicide.
  • Government is undertaking a Sustainable
    Livelihood Project

  • According to the scheme projects like soil and
    water conservation through construction of bunds,
    promotion of biomass to increase the crop
    production would be undertaken for land owners.
  • For the landless farmers, financial aid would be
    given to promote cottage industry, dairying etc

  • The state government have taken steps to ensure
  • Availability of seeds and fertilizers to the
  • Power available for a fixed time to the farmers
    so that the farmers can irrigate their fields
  • Officials of irrigation and minor irrigation
    departments to increase their resources and make
    sure that all government pumps are functional

The biofuel projects in india
  • Indian Oil Corporation, (IOC) had placed an order
    of 450 kiloliters of bio-diesel in 2004, for
    field trials with the Indian Railways and State
    Roadways. IOC will be able to supplement 5 of
    diesel with bio-diesel by 2007
  • Cleancities Biodiesel India Limited is setting up
    a Large State of Art Biodiesel Production Plant
    in India The company setting up a Two hundred
    fifty thousand Tons per annum Biodiesel plant in
    Visakhapatnam .

  • Kochi Refineries Ltd (KRL) is setting up a pilot
    plant with a US firm to extract biodiesel from
    rubber seed oil.The company proposed to have a
    pilot plant set up with a daily capacity of 100
  • Pune-based Shirke Biohealthcare Pvt. Lld., is
    setting up a refinery, with a capacity to process
    5,000 liters biodiesel per day from Jatropha oil.
  • Nova Bio Fuels Pvt. Ltd, has set up a Indian
    Rupees 200 million, biodiesel plant with a
    capacity of 30 tons per day in Panipat in 2006.