<p>By Manoj Dora*</p>

<p>Climate change could hurt farmers&rsquo; income by up to 20-25% in the medium term, according to the Indian government&rsquo;s latest annual economic survey. Extreme weather events, temperature rise, and lower rainfall all threaten to derail the Indian government&rsquo;s agenda of doubling farmers&rsquo; income across the country.</p>

<p>There are ways to counter this, however. New technology and better farm management can be deployed to improve irrigation systems. And, to ensure long-term impact, it is also important that the Indian government invests in agricultural research.</p>

<p>Agriculture is central to the Indian economy. It accounts for 50% of the country&rsquo;s employment and 18% of its GDP. And in India, about 80% of farmers are smallholders &ndash; which is generally considered to mean they have two hectares or less of land. The main crops are wheat, maize, rice, millets, pulses, sugarcane, and oil-seeds.</p>

<p>Indian farmers must contend with a number of risks, including adverse weather, competition from larger landowners or food corporations and price surges. Small farmers are a vulnerable population where social, market and economic pressures are huge, often leading to considerable distress. India is home to nearly 25% of the world&rsquo;s hungry population and has an alarming rate of farmer suicide (around 60,000 cases in the past three decades).</p>

<p>So the effects of fluctuations in weather, temperature, and rainfall on agricultural productivity will have a significant impact on the wider population.</p>

<p><strong>Climate change</strong></p>

<p>Extensive meteorological data in the recent government report shows that average temperatures are rising across the country and annual rainfall is declining. It also shows a rise in the number of days with extremely high temperatures and a corresponding decline in the number of days with low temperatures.</p>

<p>Extreme temperature shocks, when a district is significantly hotter than usual, results in a 4.7% decline in agricultural yields. Similarly, when it rains significantly less than usual there is a 12.8% decline.</p>

<p>Areas lacking in irrigation are worst affected by these extreme weather conditions. A temperature shock in an area that is not irrigated reduces yields by 7.6%. Similarly, the effects of extreme rainfall shocks are 14.7% higher in areas without irrigation &ndash; much larger than the effects these shocks have in irrigated districts.</p>

<p>Lower yields mean lower incomes for farmers. The report estimated that extreme temperature shocks will reduce farmers&rsquo; incomes by 4.3% and extreme rainfall shocks will reduce incomes by 13.7%. In a year where temperatures are 1℃ higher, farmers&rsquo; incomes would fall by 6.2% in unirrigated districts. Similarly, in a year when rainfall levels were 100mm less than average, farmers&rsquo; incomes would fall by 15%.</p>

<p>Temperatures in India are likely to rise by 3 to 4℃ by the end of the 21st century. It follows that in the absence of any adaptation by farmers, farm incomes will be lower by 20 to 25% on average in the coming years, especially in the unirrigated areas.</p>

<p>There are five important ways to mitigate against this that the Indian government could start investing in now.</p>

<p><strong>Smart irrigation</strong></p>

<p>There is a significant need for an appropriate irrigation system considering rising water scarcity and depleting groundwater resources. Less than 50% of agriculture in India is irrigated.</p>

<p>States such as Karnataka, Maharashtra, Madhya Pradesh, Rajasthan, Chhattisgarh, and Jharkhand are still extremely vulnerable to climate change due to poor irrigation. Smart irrigation systems such as drip, sprinklers and efficient water management should be made a priority and allocated across the country where needed.</p>

<p><strong>Reduce post-harvest loss</strong></p>

<p>Post-harvest loss of major agricultural production is estimated at US$13 billion. About 16% of fruits and vegetables, valued at US$6 billion were lost in the year 2015. Only 2.2% of fruits and vegetables, the most perishable of agricultural produces, are sorted and packed for consumption in India, increasing the chances of wastage as it gets sent abroad. In contrast, the US (65%) and China (23%) are far ahead of India in processing their own crops.</p>

<p>Small landholders lose out the most from this. It is not economically viable for most of them to transport their produce for centralised large-scale processing &ndash; and they lack local processing and preservation technologies. This results in a lot of wastage. This is then compounded by inadequate transport infrastructure &ndash; produce gets damaged on the journey because of bad roads, gets contaminated from repeated loading and unloaded, as well as lack of refrigeration.</p>

<p>Small farms also suffer from their reliance on middlemen to sell their product. As a result, they are sometimes compelled to sell it at less than the cost of producing it.&nbsp;</p>

<p>So there is an overwhelming need to develop technologies for local processing, smart packaging, and transport facilities which do not disadvantage small farmers.</p>

<p><strong>Data </strong><strong>driven</strong><strong> supply-chain management</strong></p>

<p>India must start using data to continuously improve the efficiency of its agricultural supply chains. New technologies such as sensors, GPS, and satellite imaging can help collect meaningful data to make India&rsquo;s agriculture system more resilient.</p>

<p>This enables different sections of the supply chain to monitor environmental and other conditions. It can be used to adapt how crops are produced, stored and distributed to reduce waste.</p>

<p><strong>Farmer-centric crop insurance</strong></p>

<p>To compensate for the uncertainty caused by climate change, an effective crop insurance programme is required to protect farmers from bad yields. Many already pay into insurance programmes but they provide little protection. The system needs overhauling so that small farmer is protected by low premium and long-term insurance cover, instead of being designed, as it seems to be at the moment, purely for the profit of insurance companies.</p>

<p><strong>Evidence-based</strong><strong> research</strong></p>

<p>Agricultural research will be vital in increasing yields but also in increasing resilience to all the problems that could come with climate change &ndash; including extreme heat and precipitation, pests and crop disease. The research will be especially important for crops such as pulses and soybean, which are crucial crops and highly vulnerable to weather and climate change.</p>

<p>These measures will improve crop and water management practices. They are tailored to small farmers and to the fragmented, small-scale agricultural landscape &ndash; to directly improve efficiency, boost productivity and minimize the environmental impact on farming.&nbsp;</p>

<p>* Manoj Dora is a Senior Lecturer in Operations &amp; Supply Chain Management, Brunel University London.</p>

<p>(Disclaimer: The opinions expressed above are the personal views of the author and do not reflect the views of ZMCL)</p>


Climate change could hurt Indian farmers' income by up to 20-25% in the medium term.

By Manoj Dora* Climate change could hurt farmers’ income by up to 20-25% in the medium term, according to the Indian government’s latest annual economic survey. Extreme weather events, temperature rise, and lower rainfall all threaten to derail the Indian government’s agenda of doubling farmers’ income across the country. There are ways to counter this, however. New technology and better farm management can be deployed to improve irrigation systems. And, to ensure long-term impact, it is also important that the Indian government invests in agricultural research. Agriculture is central to the Indian economy. It accounts for 50% of the country’s employment and 18% of its GDP. And in India, about 80% of farmers are smallholders – which is generally considered to mean they have two hectares or less of land. The main crops are wheat, maize, rice, millets, pulses, sugarcane, and oil-seeds. Indian farmers must contend with a number of risks, including adverse weather, competition from larger landowners or food corporations and price surges. Small farmers are a vulnerable population where social, market and economic pressures are huge, often leading to considerable distress. India is home to nearly 25% of the world’s hungry population and has an alarming rate of farmer suicide (around 60,000 cases in the past three decades). So the effects of fluctuations in weather, temperature, and rainfall on agricultural productivity will have a significant impact on the wider population. Climate change Extensive meteorological data in the recent government report shows that average temperatures are rising across the country and annual rainfall is declining. It also shows a rise in the number of days with extremely high temperatures and a corresponding decline in the number of days with low temperatures. Extreme temperature shocks, when a district is significantly hotter than usual, results in a 4.7% decline in agricultural yields. Similarly, when it rains significantly less than usual there is a 12.8% decline. Areas lacking in irrigation are worst affected by these extreme weather conditions. A temperature shock in an area that is not irrigated reduces yields by 7.6%. Similarly, the effects of extreme rainfall shocks are 14.7% higher in areas without irrigation – much larger than the effects these shocks have in irrigated districts. Lower yields mean lower incomes for farmers. The report estimated that extreme temperature shocks will reduce farmers’ incomes by 4.3% and extreme rainfall shocks will reduce incomes by 13.7%. In a year where temperatures are 1℃ higher, farmers’ incomes would fall by 6.2% in unirrigated districts. Similarly, in a year when rainfall levels were 100mm less than average, farmers’ incomes would fall by 15%. Temperatures in India are likely to rise by 3 to 4℃ by the end of the 21st century. It follows that in the absence of any adaptation by farmers, farm incomes will be lower by 20 to 25% on average in the coming years, especially in the unirrigated areas. There are five important ways to mitigate against this that the Indian government could start investing in now. Smart irrigation There is a significant need for an appropriate irrigation system considering rising water scarcity and depleting groundwater resources. Less than 50% of agriculture in India is irrigated. States such as Karnataka, Maharashtra, Madhya Pradesh, Rajasthan, Chhattisgarh, and Jharkhand are still extremely vulnerable to climate change due to poor irrigation. Smart irrigation systems such as drip, sprinklers and efficient water management should be made a priority and allocated across the country where needed. Reduce post-harvest loss Post-harvest loss of major agricultural production is estimated at US$13 billion. About 16% of fruits and vegetables, valued at US$6 billion were lost in the year 2015. Only 2.2% of fruits and vegetables, the most perishable of agricultural produces, are sorted and packed for consumption in India, increasing the chances of wastage as it gets sent abroad. In contrast, the US (65%) and China (23%) are far ahead of India in processing their own crops. Small landholders lose out the most from this. It is not economically viable for most of them to transport their produce for centralised large-scale processing – and they lack local processing and preservation technologies. This results in a lot of wastage. This is then compounded by inadequate transport infrastructure – produce gets damaged on the journey because of bad roads, gets contaminated from repeated loading and unloaded, as well as lack of refrigeration. Small farms also suffer from their reliance on middlemen to sell their product. As a result, they are sometimes compelled to sell it at less than the cost of producing it. So there is an overwhelming need to develop technologies for local processing, smart packaging, and transport facilities which do not disadvantage small farmers. Data driven supply-chain management India must start using data to continuously improve the efficiency of its agricultural supply chains. New technologies such as sensors, GPS, and satellite imaging can help collect meaningful data to make India’s agriculture system more resilient. This enables different sections of the supply chain to monitor environmental and other conditions. It can be used to adapt how crops are produced, stored and distributed to reduce waste. Farmer-centric crop insurance To compensate for the uncertainty caused by climate change, an effective crop insurance programme is required to protect farmers from bad yields. Many already pay into insurance programmes but they provide little protection. The system needs overhauling so that small farmer is protected by low premium and long-term insurance cover, instead of being designed, as it seems to be at the moment, purely for the profit of insurance companies. Evidence-based research Agricultural research will be vital in increasing yields but also in increasing resilience to all the problems that could come with climate change – including extreme heat and precipitation, pests and crop disease. The research will be especially important for crops such as pulses and soybean, which are crucial crops and highly vulnerable to weather and climate change. These measures will improve crop and water management practices. They are tailored to small farmers and to the fragmented, small-scale agricultural landscape – to directly improve efficiency, boost productivity and minimize the environmental impact on farming. * Manoj Dora is a Senior Lecturer in Operations & Supply Chain Management, Brunel University London. (Disclaimer: The opinions expressed above are the personal views of the author and do not reflect the views of ZMCL)

Opinion: Indian farmers can counter the threat of climate change

<p>A day after Arun Jaitley tabled the Economic Survey in parliament ahead of the Union Budget, Chief economic advisor Arvind Subramanian spoke about various topics namely GST, oil prices and gender&nbsp;inequality.</p>

<p>India&#39;s chief economic advisor said that there is a recovery in the economy of the country and hoped for further growth. However, growth depends on various other factors, he said.</p>

<p><u><strong>Arvind Subramanian on Economy</strong></u></p>

<p>- Recovery is underway in the economy.</p>

<p>- We hope that growth will get a boost.</p>

<p>- Growth depends on many factors.</p>

<p>- Export can get a boost.</p>

<p>- GST is no longer bearing the burden of note ban.</p>

<p><u><strong>Arvind Subramanian on Petroleum Products</strong></u></p>

<p>- Petroleum products need to be brought under GST.</p>

<p>- Oil prices are increasing steadily.</p>

<p>- Demand for bringing GST in prices increased due to rising prices.</p>

<p>- Oil prices will come down after coming into GST</p>

<p>- When petroleum comes into GST, the government&#39;s revenue will decrease.</p>

<p><u><strong>Arvind Subramanian on GST</strong></u></p>

<p>-Revenue growth from GST has been quite good.</p>

<p>- The picture will be clear&nbsp;in one or two quarters.</p>

<p>- Further changes in GST expected.</p>

<p>- Power, oil may be brought under GST.</p>

<p>- Will consider simplifying the GST rate structure.</p>

<p><u><strong>Arvind Subramanian on Gender Issue</strong></u></p>

<p>- Gender inequality is very high in society</p>

<p>- In the love of sons, people keep having daughters</p>

<p>- Because of this, 21 million unwanted daughters were born</p>

<p>- There is an environment of discrimination against girls in society</p>

<p><u><strong>Arvind Subramanian on &quot;Ease of Doing Business&quot;</strong></u></p>

<p>- There will be more work in many areas.</p>

<p>- The judicial system needs to improve.</p>

<p>- There are too many cases pending in the court today.</p>

<p>- It directly has an impact on the &quot;ease of doing business&quot;.</p>

<p>- There are many cases of income tax pending in court.</p>

<p><u><strong>Arvind Subramanian on private&nbsp;investment</strong></u></p>

<p>- There are several reasons why private investment does not grow.</p>

<p>- Many private companies borrowed a lot.</p>

<p>- Government is taking several steps to improve it.</p>

<p>- Many cases of non-repayment of loans were sent to NCLT.</p>

<p>- The government also focused on the recap of banks.</p>

<p><strong><u>Arvind Subramanian on Growth</u></strong></p>

<p>- GDP growth is expected to be 7-7.5% in FY19.</p>

<p>- A lot depends on world growth.</p>

<p>- Crude prices upsetting equation.</p>

<p><strong><u>Arvind Subramanian on Agriculture</u></strong></p>

<p>- Our focus will be on the betterment of the agriculture sector.</p>

<p>- It is important to improve the condition of farmers.</p>


Subramanian said the that there is a recovery in the economy of the country and hoped for further growth

A day after Arun Jaitley tabled the Economic Survey in parliament ahead of the Union Budget, Chief economic advisor Arvind Subramanian spoke about various topics namely GST, oil prices and gender inequality. India's chief economic advisor said that there is a recovery in the economy of the country and hoped for further growth. However, growth depends on various other factors, he said. Arvind Subramanian on Economy - Recovery is underway in the economy. - We hope that growth will get a boost. - Growth depends on many factors. - Export can get a boost. - GST is no longer bearing the burden of note ban. Arvind Subramanian on Petroleum Products - Petroleum products need to be brought under GST. - Oil prices are increasing steadily. - Demand for bringing GST in prices increased due to rising prices. - Oil prices will come down after coming into GST - When petroleum comes into GST, the government's revenue will decrease. Arvind Subramanian on GST -Revenue growth from GST has been quite good. - The picture will be clear in one or two quarters. - Further changes in GST expected. - Power, oil may be brought under GST. - Will consider simplifying the GST rate structure. Arvind Subramanian on Gender Issue - Gender inequality is very high in society - In the love of sons, people keep having daughters - Because of this, 21 million unwanted daughters were born - There is an environment of discrimination against girls in society Arvind Subramanian on "Ease of Doing Business" - There will be more work in many areas. - The judicial system needs to improve. - There are too many cases pending in the court today. - It directly has an impact on the "ease of doing business". - There are many cases of income tax pending in court. Arvind Subramanian on private investment - There are several reasons why private investment does not grow. - Many private companies borrowed a lot. - Government is taking several steps to improve it. - Many cases of non-repayment of loans were sent to NCLT. - The government also focused on the recap of banks. Arvind Subramanian on Growth - GDP growth is expected to be 7-7.5% in FY19. - A lot depends on world growth. - Crude prices upsetting equation. Arvind Subramanian on Agriculture - Our focus will be on the betterment of the agriculture sector. - It is important to improve the condition of farmers.

Chief economic advisor Arvind Subramanian on GST, oil prices & ease of doing business

<p>India Inc today pitched for focus on rapidly improving human capital and agricultural productivity to sustain the economic growth trajectory, while cheering the GDP growth projection of 7-7.5 per cent in 2018-19 laid out by the Economic Survey.</p>

<p>&quot;The Survey provides new ideas for building a positive momentum for growth in the coming year and for faster growth thereafter. It delineates a long-term vision for powering the emergence of a New India which is both transformative and socially inclusive,&quot; CII Director General Chandrajit Banerjee said.</p>

<p>The Survey has rightly alluded that the chief areas of policy focus in the medium term are employment, especially for women; educated and healthy labour force; and raising farm productivity, he added.<br />
&quot;We expect that the Budget will address some of these issues,&quot; he said.</p>

<p>Industry body Assocham said while the Insolvency resolution mechanism has begun in the right earnest, a big vigil needs to be kept and the banks must be given additional capital at the earliest, observing that &quot;until the issue of NPA (non performing assets) is fixed, growth may elude us&quot;.</p>

<p>&quot;Economic Survey for 2017-18 has brought out areas of concern such as rising non-performing assets of the public sector banks and has underlined the need, rightly so, for putting maximum emphasis on creating new jobs, agriculture and education,&quot; Assocham President Sandeep Jajodia said.</p>

<p>He said there is a need to keep a vigil on inflation, particularly in the wake of rising fuel prices and the government must remain steadfast on the path of reforms.</p>

<p>PHD Chamber of Commerce President Anil Khaitan said the focus of the government in the medium term on employment, education and agriculture is encouraging and would foster a sustainable economic environment, going forward.</p>

<p>The Survey tabled in Parliament by Finance Minister Arun Jaitley pegs India to regain fastest growing major economy tag, with the country&#39;s GDP estimated to grow between 7-7.5 per cent in 2018-19. It also estimates the GDP to grow 6.75 per cent in the current fiscal.</p>

<p>Experts and economists too shared their opinion on the Survey.</p>

<p>&quot;Although an uptick in 2018-19 growth has not been ruled out, it is more likely towards the lower end of the range. Evolving domestic and global conditions can swing growth in any direction,&quot; said Devendra Kumar Pant, Chief Economist at India Ratings &amp; Research.</p>

<p>According to Anis Chakravarty, Chief Economist, Deloitte India, with rapidly changing demography and incoming automation, manual jobs may become redundant, and this creates a need to generate opportunities in services domain.</p>

<p>Especially important will be an increased private sector participation as bulk is carried on via government agencies, he said.</p>

<p>Manish Agarwal, Leader?Infrastructure at PwC India said: &quot;The growth in manufacturing is a big positive. Credit offtake, growth in cement, steel etc point to pick-up in capacity creation also. As the pace picks up, the industrial corridors could see faster development.&quot;</p>


India Inc today pitched for focus on rapidly improving human capital and agricultural productivity to sustain the economic growth trajectory, while cheering the GDP growth projection of 7-7.5 per cent in 2018-19 laid out by the Economic Survey

India Inc today pitched for focus on rapidly improving human capital and agricultural productivity to sustain the economic growth trajectory, while cheering the GDP growth projection of 7-7.5 per cent in 2018-19 laid out by the Economic Survey. "The Survey provides new ideas for building a positive momentum for growth in the coming year and for faster growth thereafter. It delineates a long-term vision for powering the emergence of a New India which is both transformative and socially inclusive," CII Director General Chandrajit Banerjee said. The Survey has rightly alluded that the chief areas of policy focus in the medium term are employment, especially for women; educated and healthy labour force; and raising farm productivity, he added. "We expect that the Budget will address some of these issues," he said. Industry body Assocham said while the Insolvency resolution mechanism has begun in the right earnest, a big vigil needs to be kept and the banks must be given additional capital at the earliest, observing that "until the issue of NPA (non performing assets) is fixed, growth may elude us". "Economic Survey for 2017-18 has brought out areas of concern such as rising non-performing assets of the public sector banks and has underlined the need, rightly so, for putting maximum emphasis on creating new jobs, agriculture and education," Assocham President Sandeep Jajodia said. He said there is a need to keep a vigil on inflation, particularly in the wake of rising fuel prices and the government must remain steadfast on the path of reforms. PHD Chamber of Commerce President Anil Khaitan said the focus of the government in the medium term on employment, education and agriculture is encouraging and would foster a sustainable economic environment, going forward. The Survey tabled in Parliament by Finance Minister Arun Jaitley pegs India to regain fastest growing major economy tag, with the country's GDP estimated to grow between 7-7.5 per cent in 2018-19. It also estimates the GDP to grow 6.75 per cent in the current fiscal. Experts and economists too shared their opinion on the Survey. "Although an uptick in 2018-19 growth has not been ruled out, it is more likely towards the lower end of the range. Evolving domestic and global conditions can swing growth in any direction," said Devendra Kumar Pant, Chief Economist at India Ratings & Research. According to Anis Chakravarty, Chief Economist, Deloitte India, with rapidly changing demography and incoming automation, manual jobs may become redundant, and this creates a need to generate opportunities in services domain. Especially important will be an increased private sector participation as bulk is carried on via government agencies, he said. Manish Agarwal, Leader?Infrastructure at PwC India said: "The growth in manufacturing is a big positive. Credit offtake, growth in cement, steel etc point to pick-up in capacity creation also. As the pace picks up, the industrial corridors could see faster development."

India Inc cheers Economic Survey

<p>The National Green Tribunal has called for a meeting of Ministry of Agriculture and states of Delhi, Haryana, Punjab, Rajasthan and Uttar Pradesh on 28 November.</p>

<p>The NGT has also asked the&nbsp;NTPC to join the meeting.</p>

<p>The meeting is scheduled for 11 am.</p>

<p>The meeting is convened to decide on transportation and use of stubble.</p>

<div class="ui-state-default" contenteditable="false">
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<blockquote class="twitter-tweet" data-lang="en">
<p dir="ltr" lang="en">NGT directs NTPC, Ministry of Agriculture and states of Delhi, Haryana, Punjab, Rajasthan and Uttar Pradesh to convene a meeting at 11 am on 28 November to decide on transportation, subsequent use of stubble and compensating farmers adequately. Next date of hearing is 6 December.</p>
&mdash; ANI (@ANI) <a href="https://twitter.com/ANI/status/933236964009984000?ref_src=twsrc%5Etfw">November 22, 2017</a></blockquote>
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script></div>
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<p>The meeting will try to formulate a workable solution for stubble burning.&nbsp;</p>

<p>The Thermal Power plant has expressed its willingness to use agricultural residue in power plants. However, they can use it as five per cent of the fuel.&nbsp;&nbsp;</p>

<div class="ui-state-default" contenteditable="false">
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<blockquote class="twitter-tweet" data-lang="en">
<p dir="ltr" lang="en">NGT asks all the concerned states to provide workable solution for stubble burning. NTPC says they are willing to use agricultural residue in power plants, however it may not be possible to use it directly as they can only use it as 5 percent of the fuel.</p>
&mdash; ANI (@ANI) <a href="https://twitter.com/ANI/status/933236613148172289?ref_src=twsrc%5Etfw">November 22, 2017</a></blockquote>
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<p>The NGT&#39;s decision is in response to the rising level of air pollutant&nbsp;in Delhi and adjoining states.</p>

<p>The pollution level rises after the farmers resort to stubble burning to clear off the agricultural fields for next season.</p>


The meeting is convened to decide on transportation and use of stubble

The National Green Tribunal has called for a meeting of Ministry of Agriculture and states of Delhi, Haryana, Punjab, Rajasthan and Uttar Pradesh on 28 November. The NGT has also asked the NTPC to join the meeting. The meeting is scheduled for 11 am. The meeting is convened to decide on transportation and use of stubble. NGT directs NTPC, Ministry of Agriculture and states of Delhi, Haryana, Punjab, Rajasthan and Uttar Pradesh to convene a meeting at 11 am on 28 November to decide on transportation, subsequent use of stubble and compensating farmers adequately. Next date of hearing is 6 December. — ANI (@ANI) November 22, 2017 × The meeting will try to formulate a workable solution for stubble burning. The Thermal Power plant has expressed its willingness to use agricultural residue in power plants. However, they can use it as five per cent of the fuel. NGT asks all the concerned states to provide workable solution for stubble burning. NTPC says they are willing to use agricultural residue in power plants, however it may not be possible to use it directly as they can only use it as 5 percent of the fuel. — ANI (@ANI) November 22, 2017 × The NGT's decision is in response to the rising level of air pollutant in Delhi and adjoining states. The pollution level rises after the farmers resort to stubble burning to clear off the agricultural fields for next season.

NGT called for a meeting of Ministry of Agriculture, states and NTPC on Nov 28

<p>Zimbabwe&rsquo;s financial system increasingly resembles a house of cards. Were one card to give way &ndash; for instance, if South Africa&rsquo;s power utility, Eskom, were to have the temerity to suggest that Zimbabwe actually pays for the electricity that it&rsquo;s supplying the country &ndash; the entire edifice would collapse.</p>

<p>To put it another way, the government is a bust. It is again printing money to cover its spiralling costs, and inflation is rising. And given that there&rsquo;s an election looming in 2018, Zimbabwe&rsquo;s ruling party, ZANU-PF doesn&rsquo;t want to cut-back. Far from it, it wants to carry on spending, as fast as it can.</p>

<p>The rot goes back to the early 2000&rsquo;s. ZANU-PF profligacy had been fuelled by a&nbsp;continuous cycle of simply printing more money and resultant runaway inflation. Mega-inflation meant that ordinary people lost their pensions and whatever savings they had, as the Zimbabwe dollar lost its value and people resorted to barter or the use of other currencies.</p>

<p>Ultimately, the government faced no choice but to accept reality. In 2008 it scrapped the Zimbabwe dollar in favour of a basket of other currencies, although within a short time, this meant in effect the reign of the US dollar.</p>

<p>&ldquo;Dollarisation&rdquo; allowed for the pursuit of more rational policies by the coalition Government of National Unity which followed the disputed 2008 election. However, its control of the electoral machinery ensured that ZANU-PF won a resounding victory in the 2013 election. Within a short space of time, it returned to its familiar policy mix of profligacy, corruption and populist economics.</p>

<p>Yet ZANU-PF faced major problems. Above all, &ldquo;dollarisation&rdquo; meant that the cost of Zimbabwe&rsquo;s exports on international markets was high. Worse, the dramatic collapse in agricultural production since the early 2000s (following the appropriation of white farms) alongside the decimation of the country&rsquo;s manufacturing industries meant that there was relatively little to export anyway. Tobacco production has recovered a little, but the quality is less than it used to be, so returns are relatively less.</p>

<p>Meanwhile, government insistence that mines should be 51 per cent&nbsp;Zimbabwean owned has done nothing to entice inward investment or boost exports.</p>

<p>In short, the capacity of the economy to earn US dollars by selling goods externally has fallen dramatically, and the supply of money circulating within the country has dried up. Unemployment stands at around 90 per cent.</p>

<p>President Robert Mugabe&rsquo;s latest response has been to replace finance minister Patrick Chinamasa, who had been warning of the structure&rsquo;s fragility in ever more urgent tones. The new finance minister is Ignatius Chombo, a party loyalist, who will brook no talk of any need for structural reform.</p>

<p><strong>The bond notes</strong></p>

<p>Faced with a looming crisis, the ZANU-PF government has resorted to three key strategies.</p>

<p>One has been the issue of &ldquo;bond notes&rdquo; (of different denominations) by the Reserve Bank of Zimbabwe. Officially, they&rsquo;re designed to swell the amount of money in circulation within the country. The problem is that apart from having no value outside the country, nobody trusts them as they have been issued by a ZANU-PF government, and it was this government that presided over the hyperinflation.</p>

<p>ZANU-PF&rsquo;s announcement that it was issuing bond notes was met with a run on the banks as depositors sought to withdraw dollars as fast as they could. Their assumption was that this was a government ploy to reintroduce the Zimbabwean dollar. The Reserve Bank of Zimbabwe responded by limiting the number of dollars individuals could withdraw.</p>

<p>People are reluctant to use the bond notes. But they&rsquo;re still sometimes forced to accept them because of the sheer shortage of &ldquo;real&rdquo; money. As a result, when they can, they rush off to the local bus station where they can sell them for dollars to currency traders &ndash; albeit illegally.</p>

<p>The second strategy has been the rapid expansion of country&rsquo;s ability to manage electronic transactions. Its aim has been to expand the amount of money in circulation without using up &ldquo;real&rdquo; dollars.</p>

<p>Accordingly, government employees are now largely paid electronically. Similarly, government employees (and everyone else) now pay nearly all their bills within the country electronically.</p>

<p>And Zimbabweans are rarely able to convert the notional sums of dollars they hold in the bank into real cash &ndash; unless they make use of the currency traders in illegal transactions.</p>

<p>Meanwhile, with the rate of inflation continuing to rise combined with the widespread lack of faith in the banks, many Zimbabweans spend their bank balances on consumer goods as quickly as possible rather than attempting to &ldquo;save&rdquo;. After all, if times get hard, you won&rsquo;t be able to get rid of your bond notes, but you may be able to sell your fridge.</p>

<p><strong>Fanciful financial system</strong></p>

<p>But it&rsquo;s the third strategy which the government has pursued which is really fuelling a fanciful financial system.</p>

<p>Since 2013, government expenditure has steadily increased year by year, despite the country earning very little internationally. The ZANU-PF government may have hoped to fund this by its old trick of literally printing money, that is, by expanding the supply of bond notes.</p>

<p>But such was the negative popular sentiment that the Reserve Bank of Zimbabwe seems to have restricted their issue. Supposedly the issue of bond notes is backed by a USD$200 loan by the Afreximbank, but no-one really knows how many have been issued because the central bank provides no information.</p>

<p>What the government has done instead is to fund its rising costs by issuing treasury bills (whereby the government touts for loans on the capital market against promises of later redemption). No-one in their right mind would want to buy them, but Zimbabwe&rsquo;s banks today have little option. As inward investment into the country has dried up to a trickle, there is little else for them to spend their money on, and the interest rates that the government promises to pay are, at face value, attractively high.</p>

<p>The coalition government of national unity recorded budget surpluses for three of the four full years in which the opposition controlled the Treasury. For its part, the ZANU-PF government recorded deficits of USD$186 million and USD$125 million in 2014 and 2015. Recently, the then finance minister Chinamasa projected a deficit of USD$1.41 billion for 2017. As of June 30, 2017, there were USD$2.5 billion worth of Treasury bills on the issue.</p>

<p>In other words, the spending will continue. Zimbabwe&rsquo;s financial system is living on borrowed time and borrowed money. It will again end in financial ruin, as it did in 2008. But all ZANU-PF cares about is ensuring that it wins the next election and allowing its political elite to &ldquo;eat&rdquo;.</p>

<p>This article was originally published in <a href="http://theconversation.com" rel="nofollow" target="blank">The Conversation</a>. Read the <a href="https://theconversation.com/zimbabwes-financial-system-is-living-on-borrowed-time-and-borrowed-money-86159" rel="nofollow" target="blank">original article</a>.</p>

<p><a href="http://www.wionews.com/world/grace-mugabe-flees-zimbabwe-after-army-takes-over-reports-24301">Also read:&nbsp;Grace Mugabe flees Zimbabwe after army takes over: Reports</a></p>

<p><a href="http://www.wionews.com/world/zimbabwes-robert-mugabe-liberation-hero-turned-despot-24292">Also </a><a href="http://www.wionews.com/world/zimbabwes-robert-mugabe-liberation-hero-turned-despot-24292">read:</a><a href="http://www.wionews.com/world/zimbabwes-robert-mugabe-liberation-hero-turned-despot-24292">&nbsp;Zimbabwe&#39;s Robert Mugabe: Liberation hero turned despot</a></p>

<p><a href="http://www.wionews.com/world/main-zimbabwe-newspaper-completely-misses-news-of-coup-24321">Also read:&nbsp;Main Zimbabwe newspaper completely misses news of coup</a></p>

<p><a href="http://www.wionews.com/world/targeting-criminals-not-a-military-takeover-of-government-zimbabwe-military-24236">Also read:&nbsp;Targeting criminals, not a military takeover of government: Zimbabwe military</a></p>

<p><a href="http://www.wionews.com/world/army-takes-control-in-zimbabwe-president-mugabe-detained-report-24283">Also </a><a href="http://www.wionews.com/world/army-takes-control-in-zimbabwe-president-mugabe-detained-report-24283">read:</a><a href="http://www.wionews.com/world/army-takes-control-in-zimbabwe-president-mugabe-detained-report-24283"> Zimbabwe: President Mugabe under house arrest, army denies coup</a><br />
&nbsp;</p>


Years of political instability and economic mismanagement under the rule of ZANU-PF have left Zimbabwe?s financial system in chaos. The country is living on borrowed time and borrowed money.

Zimbabwe’s financial system increasingly resembles a house of cards. Were one card to give way – for instance, if South Africa’s power utility, Eskom, were to have the temerity to suggest that Zimbabwe actually pays for the electricity that it’s supplying the country – the entire edifice would collapse. To put it another way, the government is a bust. It is again printing money to cover its spiralling costs, and inflation is rising. And given that there’s an election looming in 2018, Zimbabwe’s ruling party, ZANU-PF doesn’t want to cut-back. Far from it, it wants to carry on spending, as fast as it can. The rot goes back to the early 2000’s. ZANU-PF profligacy had been fuelled by a continuous cycle of simply printing more money and resultant runaway inflation. Mega-inflation meant that ordinary people lost their pensions and whatever savings they had, as the Zimbabwe dollar lost its value and people resorted to barter or the use of other currencies. Ultimately, the government faced no choice but to accept reality. In 2008 it scrapped the Zimbabwe dollar in favour of a basket of other currencies, although within a short time, this meant in effect the reign of the US dollar. “Dollarisation” allowed for the pursuit of more rational policies by the coalition Government of National Unity which followed the disputed 2008 election. However, its control of the electoral machinery ensured that ZANU-PF won a resounding victory in the 2013 election. Within a short space of time, it returned to its familiar policy mix of profligacy, corruption and populist economics. Yet ZANU-PF faced major problems. Above all, “dollarisation” meant that the cost of Zimbabwe’s exports on international markets was high. Worse, the dramatic collapse in agricultural production since the early 2000s (following the appropriation of white farms) alongside the decimation of the country’s manufacturing industries meant that there was relatively little to export anyway. Tobacco production has recovered a little, but the quality is less than it used to be, so returns are relatively less. Meanwhile, government insistence that mines should be 51 per cent Zimbabwean owned has done nothing to entice inward investment or boost exports. In short, the capacity of the economy to earn US dollars by selling goods externally has fallen dramatically, and the supply of money circulating within the country has dried up. Unemployment stands at around 90 per cent. President Robert Mugabe’s latest response has been to replace finance minister Patrick Chinamasa, who had been warning of the structure’s fragility in ever more urgent tones. The new finance minister is Ignatius Chombo, a party loyalist, who will brook no talk of any need for structural reform. The bond notes Faced with a looming crisis, the ZANU-PF government has resorted to three key strategies. One has been the issue of “bond notes” (of different denominations) by the Reserve Bank of Zimbabwe. Officially, they’re designed to swell the amount of money in circulation within the country. The problem is that apart from having no value outside the country, nobody trusts them as they have been issued by a ZANU-PF government, and it was this government that presided over the hyperinflation. ZANU-PF’s announcement that it was issuing bond notes was met with a run on the banks as depositors sought to withdraw dollars as fast as they could. Their assumption was that this was a government ploy to reintroduce the Zimbabwean dollar. The Reserve Bank of Zimbabwe responded by limiting the number of dollars individuals could withdraw. People are reluctant to use the bond notes. But they’re still sometimes forced to accept them because of the sheer shortage of “real” money. As a result, when they can, they rush off to the local bus station where they can sell them for dollars to currency traders – albeit illegally. The second strategy has been the rapid expansion of country’s ability to manage electronic transactions. Its aim has been to expand the amount of money in circulation without using up “real” dollars. Accordingly, government employees are now largely paid electronically. Similarly, government employees (and everyone else) now pay nearly all their bills within the country electronically. And Zimbabweans are rarely able to convert the notional sums of dollars they hold in the bank into real cash – unless they make use of the currency traders in illegal transactions. Meanwhile, with the rate of inflation continuing to rise combined with the widespread lack of faith in the banks, many Zimbabweans spend their bank balances on consumer goods as quickly as possible rather than attempting to “save”. After all, if times get hard, you won’t be able to get rid of your bond notes, but you may be able to sell your fridge. Fanciful financial system But it’s the third strategy which the government has pursued which is really fuelling a fanciful financial system. Since 2013, government expenditure has steadily increased year by year, despite the country earning very little internationally. The ZANU-PF government may have hoped to fund this by its old trick of literally printing money, that is, by expanding the supply of bond notes. But such was the negative popular sentiment that the Reserve Bank of Zimbabwe seems to have restricted their issue. Supposedly the issue of bond notes is backed by a USD$200 loan by the Afreximbank, but no-one really knows how many have been issued because the central bank provides no information. What the government has done instead is to fund its rising costs by issuing treasury bills (whereby the government touts for loans on the capital market against promises of later redemption). No-one in their right mind would want to buy them, but Zimbabwe’s banks today have little option. As inward investment into the country has dried up to a trickle, there is little else for them to spend their money on, and the interest rates that the government promises to pay are, at face value, attractively high. The coalition government of national unity recorded budget surpluses for three of the four full years in which the opposition controlled the Treasury. For its part, the ZANU-PF government recorded deficits of USD$186 million and USD$125 million in 2014 and 2015. Recently, the then finance minister Chinamasa projected a deficit of USD$1.41 billion for 2017. As of June 30, 2017, there were USD$2.5 billion worth of Treasury bills on the issue. In other words, the spending will continue. Zimbabwe’s financial system is living on borrowed time and borrowed money. It will again end in financial ruin, as it did in 2008. But all ZANU-PF cares about is ensuring that it wins the next election and allowing its political elite to “eat”. This article was originally published in The Conversation. Read the original article. Also read: Grace Mugabe flees Zimbabwe after army takes over: Reports Also read: Zimbabwe's Robert Mugabe: Liberation hero turned despot Also read: Main Zimbabwe newspaper completely misses news of coup Also read: Targeting criminals, not a military takeover of government: Zimbabwe military Also read: Zimbabwe: President Mugabe under house arrest, army denies coup

Robert Mugabe's Zimbabwe is in deep mess

<p>Last year, I visited Embu a town in Eastern Kenya and met female farmers who had received seeds under a regular seed based intervention program - the community-based seed production programmes (CBSPP). The objective of CBSPP is to develop commercial seeds with the help of farmers.</p>

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<h5>Under CBSPP the farmer receives &lsquo;x&rsquo; kg of seeds and returns &lsquo;2x&rsquo; kg of seed to the programme.</h5>
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<p>The case of CBSPP further strengthens the point that security in terms of seed and access to market may not guarantee the success of a seed distribution programme. It is extremely important to understand the role played by local institutional setup and gender, to mention few key factors.</p>

<p>Under CBSPP the farmer receives &lsquo;x&rsquo; kg of seeds and returns &lsquo;2x&rsquo; kg of seed to the programme. The seeds received by the programme are redistributed to another set of farmers. The intervention adapts to the local seed market by building on the assumption that after giving &lsquo;2x&rsquo; kg of seed back to the organisation, the farmer will keep a certain amount of seed for him/herself and will sell the remaining seeds to other farmers (trader) either personally or via the local market.</p>

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<h5>The programme quite often failed as it was unable to create a local demand for high-quality seeds.</h5>
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<p>This is an important step because the informal economy (local seed market) is the backbone of Kenyan agriculture, usually, it remains active even during droughts and it supplies almost 90 per cent of seeds to the farmers. In most cases, CBSPP could facilitate temporary access to good quality seeds. However, the programme quite often failed as it was unable to create a local demand for high-quality seeds, had poor buy-back arrangements and provided inadequate information about the seeds sold by the groups.</p>

<p>The design of CBSPP sheds light on the way the policy sought to encourage interaction between the formal knowledge of laboratories and the experiential knowledge of the farmers.</p>

<p>By formulating CBSPP, an intervention that redistributes non-certified seeds and allows farmers to mix the different kinds of seeds in their farming, the government seemed to be encouraging farmers&rsquo; practice of generating new seeds, and can, therefore, be construed as encouraging integration of farmer&rsquo;s knowledge with the formal knowledge base of the laboratories.</p>

<p>However, a deeper scrutiny reveals otherwise. The interactions with the farmers revealed that the programme did not leave much scope for farmers&rsquo; participation in a decision-making capacity. In other words, the seeds come with a set of instructions about the way they should be used, based on the laboratory knowledge about their best possible application.</p>

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<h5>By ensuring that every farmer follows the same set of instructions, the intervention restricts the development of the diverse traditional agricultural practices and the farmers&rsquo; problem-solving attitude.</h5>
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<p>The set of instructions are prepared when the seeds are under the supervision of the Kenyan Agricultural Research Institute and the Kenya Plant Health Directorate Service. A few farmers may participate in the preparation of these instructions. However, claiming that these farmers are representative of the entire farming community in the region is surely not what such a response would mean.</p>

<p>The input ingredient used by every farmer varies based on the agro-ecological context in which they are living. Hence, by ensuring that every farmer follows the same set of instructions, the intervention restricts the development of the diverse traditional agricultural practices and the farmers&rsquo; problem-solving attitude. Thus, policies relying on &lsquo;top-down approach&rsquo; may crowd out local innovative capacity and the advantage of building on a local understanding of the institutional and biophysical context.</p>

<p>The inadequate overlap between the knowledge that informs policies and the local contexts becomes more apparent when one investigates, for example, the link between the programme, local politics, and irrigation requirements. The Kamba group of farmers in Embu used to participate in the programme but they discontinued this following a drought when they lost all their harvest and nothing was left for the buy-back programme.</p>

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<h5>The need for a proper diagnosis of local social relations becomes more heightened when we analyze the gender dimensions of decision-making processes across different Kenyan tribes &ndash; Kikuyu &amp; Kamba.</h5>
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<p>Ironically, the Kamba tribe is not located very far from a river but is not able to use the river water for irrigation, arguably due to local politics. This illustrates the inadequate level of understanding of the local area in designing the programme, where local (political) practices and social relations were perhaps not factored in when supplying seeds which would require a timely supply of water for survival. &nbsp;</p>

<p>The need for a proper diagnosis of local social relations becomes more heightened when we analyse the gender dimensions of decision-making processes across different Kenyan tribes &ndash; Kikuyu &amp; Kamba.&nbsp;</p>

<p>The Kikuyu women&rsquo;s group explained that they need to get permission from their husbands only when they contact someone new for farming. The Kamba women&rsquo;s group, on the other hand, remained dependent on their husbands for almost every decision pertaining to farming. This difference in their decision-making power was reflected in the way the Kikuyu women collectively found a local solution to their water problems. The farmland of the Kikuyu women&rsquo;s farming group is in an area that crucially depends on rainwater for irrigation.</p>

<p>However, 20 years ago the Kikuyu women decided to dig a big well and started water harvesting. As a result, they are no longer dependent on rainwater for irrigation. Also, during the conversation with them, the Kikuyu group identified four innovative farming practices carried out by three farmers in their locality - digging a well to harvest rainwater, planting maize in polythene bags, preparing insecticide, and soil conservation.</p>

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<h5>It is vital to actively include the experience, knowledge and voice of the farmer in the agricultural policies to ensure sustainable food security.</h5>
</blockquote>
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<p>In comparison, the Kamba group could only identify two innovative activities taken up by two of their members: one of them owned a bullock, and one member finished land preparation before other group members. Without knowing the distribution of wealth and income within the group, it remains difficult to judge whether such acts were reflective of innovative conduct or merely reveal better access to capital or human resources on the part of those farmers. In both the cases, the farmers relied on personal experience embedded in the local agro-ecological context, experimentation and intuitive reasoning.</p>

<p>By not paying attention to these crucial local factors the policies help in the erosion of local agricultural practices and knowledge base. Embu is a town in Kenya but similar narratives and stories are present all over India. It is vital to actively include the experience, knowledge and voice of the farmer in the agricultural policies to ensure sustainable food security.</p>

<p>Photo credit:&nbsp;K. Kinsuk Mani Sinha</p>


Experience, knowledge and voice of the farmer, is important to ensure sustainable food security

Last year, I visited Embu a town in Eastern Kenya and met female farmers who had received seeds under a regular seed based intervention program - the community-based seed production programmes (CBSPP). The objective of CBSPP is to develop commercial seeds with the help of farmers. Under CBSPP the farmer receives ‘x’ kg of seeds and returns ‘2x’ kg of seed to the programme. × The case of CBSPP further strengthens the point that security in terms of seed and access to market may not guarantee the success of a seed distribution programme. It is extremely important to understand the role played by local institutional setup and gender, to mention few key factors. Under CBSPP the farmer receives ‘x’ kg of seeds and returns ‘2x’ kg of seed to the programme. The seeds received by the programme are redistributed to another set of farmers. The intervention adapts to the local seed market by building on the assumption that after giving ‘2x’ kg of seed back to the organisation, the farmer will keep a certain amount of seed for him/herself and will sell the remaining seeds to other farmers (trader) either personally or via the local market. The programme quite often failed as it was unable to create a local demand for high-quality seeds. × This is an important step because the informal economy (local seed market) is the backbone of Kenyan agriculture, usually, it remains active even during droughts and it supplies almost 90 per cent of seeds to the farmers. In most cases, CBSPP could facilitate temporary access to good quality seeds. However, the programme quite often failed as it was unable to create a local demand for high-quality seeds, had poor buy-back arrangements and provided inadequate information about the seeds sold by the groups. The design of CBSPP sheds light on the way the policy sought to encourage interaction between the formal knowledge of laboratories and the experiential knowledge of the farmers. By formulating CBSPP, an intervention that redistributes non-certified seeds and allows farmers to mix the different kinds of seeds in their farming, the government seemed to be encouraging farmers’ practice of generating new seeds, and can, therefore, be construed as encouraging integration of farmer’s knowledge with the formal knowledge base of the laboratories. However, a deeper scrutiny reveals otherwise. The interactions with the farmers revealed that the programme did not leave much scope for farmers’ participation in a decision-making capacity. In other words, the seeds come with a set of instructions about the way they should be used, based on the laboratory knowledge about their best possible application. By ensuring that every farmer follows the same set of instructions, the intervention restricts the development of the diverse traditional agricultural practices and the farmers’ problem-solving attitude. × The set of instructions are prepared when the seeds are under the supervision of the Kenyan Agricultural Research Institute and the Kenya Plant Health Directorate Service. A few farmers may participate in the preparation of these instructions. However, claiming that these farmers are representative of the entire farming community in the region is surely not what such a response would mean. The input ingredient used by every farmer varies based on the agro-ecological context in which they are living. Hence, by ensuring that every farmer follows the same set of instructions, the intervention restricts the development of the diverse traditional agricultural practices and the farmers’ problem-solving attitude. Thus, policies relying on ‘top-down approach’ may crowd out local innovative capacity and the advantage of building on a local understanding of the institutional and biophysical context. The inadequate overlap between the knowledge that informs policies and the local contexts becomes more apparent when one investigates, for example, the link between the programme, local politics, and irrigation requirements. The Kamba group of farmers in Embu used to participate in the programme but they discontinued this following a drought when they lost all their harvest and nothing was left for the buy-back programme. The need for a proper diagnosis of local social relations becomes more heightened when we analyze the gender dimensions of decision-making processes across different Kenyan tribes – Kikuyu & Kamba. × Ironically, the Kamba tribe is not located very far from a river but is not able to use the river water for irrigation, arguably due to local politics. This illustrates the inadequate level of understanding of the local area in designing the programme, where local (political) practices and social relations were perhaps not factored in when supplying seeds which would require a timely supply of water for survival. The need for a proper diagnosis of local social relations becomes more heightened when we analyse the gender dimensions of decision-making processes across different Kenyan tribes – Kikuyu & Kamba. The Kikuyu women’s group explained that they need to get permission from their husbands only when they contact someone new for farming. The Kamba women’s group, on the other hand, remained dependent on their husbands for almost every decision pertaining to farming. This difference in their decision-making power was reflected in the way the Kikuyu women collectively found a local solution to their water problems. The farmland of the Kikuyu women’s farming group is in an area that crucially depends on rainwater for irrigation. However, 20 years ago the Kikuyu women decided to dig a big well and started water harvesting. As a result, they are no longer dependent on rainwater for irrigation. Also, during the conversation with them, the Kikuyu group identified four innovative farming practices carried out by three farmers in their locality - digging a well to harvest rainwater, planting maize in polythene bags, preparing insecticide, and soil conservation. It is vital to actively include the experience, knowledge and voice of the farmer in the agricultural policies to ensure sustainable food security. × In comparison, the Kamba group could only identify two innovative activities taken up by two of their members: one of them owned a bullock, and one member finished land preparation before other group members. Without knowing the distribution of wealth and income within the group, it remains difficult to judge whether such acts were reflective of innovative conduct or merely reveal better access to capital or human resources on the part of those farmers. In both the cases, the farmers relied on personal experience embedded in the local agro-ecological context, experimentation and intuitive reasoning. By not paying attention to these crucial local factors the policies help in the erosion of local agricultural practices and knowledge base. Embu is a town in Kenya but similar narratives and stories are present all over India. It is vital to actively include the experience, knowledge and voice of the farmer in the agricultural policies to ensure sustainable food security. Photo credit: K. Kinsuk Mani Sinha

Farmer's perspective about the seed distribution programme in Embu, Kenya

<p>India and Israel signed seven agreements on Wednesday after talks between Indian Prime Minister Narendra Modi and his Israeli counterpart Benjamin Netanyahu.&nbsp;</p>

<p>The agreements are on water conservation, agriculture, innovation, and space.&nbsp;</p>

<p>There were no agreements on defence.&nbsp;</p>

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<p dir="ltr" lang="en"><a href="https://twitter.com/hashtag/IndiaIsraelFriendship?src=hash">#IndiaIsraelFriendship</a>: Exploring New Realms of Cooperation - the two leaders witnessed the exchange of 7 agreements across sectors <a href="https://t.co/CrJDXascUd">pic.twitter.com/CrJDXascUd</a></p>
&mdash; Gopal Baglay (@MEAIndia) <a href="https://twitter.com/MEAIndia/status/882566014088642560">July 5, 2017</a></blockquote>
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<p>&quot;Israel is among the leading nations in the field of innovation, water and agriculture,&quot; said PM Modi at the joint statement the two leaders made.&nbsp;</p>

<p>The two countries also agreed to work together on combating terror.&nbsp;</p>

<p>&quot;We are being challenged by forces of terror. We have agreed to cooperate in this area,&quot; said PM Netanyahu</p>

<p>&quot;India has suffered first-hand the violence and hatred spread by terror, so has Israel,&quot; said PM Modi</p>

<p>&quot;The bonhomie that has been a feature of this visit continued.&nbsp;</p>

<p>&quot;This is a marriage made in heaven but we are implementing it here on earth,&quot; said PM Netanyahu &nbsp;</p>

<p>&quot;This is a deeply moving moment for me. We are making history,&quot; he added.&nbsp;</p>

<p>Modi took on the tone of a global statesman.&nbsp;</p>

<p>&quot;Our talks focused on not just areas of bilateral opportunities but also how our cooperation can help cause of global peace and stability,&quot; Modi said.&nbsp;</p>

<p>At a ministry of external affairs media briefing after the joint statement, Indian foreign secretary S Jaishankar said Israel -- with its expertise in water management, agriculture, and innovation -- was the perfect country for India to partner with.&nbsp;</p>

<p>The Israelis, he said, were not only very good at developing new products but also at taking them to market.&nbsp;</p>

<p>Explaining the lack of defence deals -- India is one of the largest buyers of defence equipment from Israel -- Jaishankar said many of those are signed between companies, rather than between countries.&nbsp;</p>

<p>&nbsp;</p>


India and Israel signed seven agreements on Wednesday after talks between Indian Prime Minister Narendra Modi and his Israeli counterpart Benjamin Netanyahu. The agreements are on water conservation, agriculture, innovation, and space. There were no agreements on defence. #IndiaIsraelFriendship: Exploring New Realms of Cooperation - the two leaders witnessed the exchange of 7 agreements across sectors pic.twitter.com/CrJDXascUd — Gopal Baglay (@MEAIndia) July 5, 2017 × "Israel is among the leading nations in the field of innovation, water and agriculture," said PM Modi at the joint statement the two leaders made. The two countries also agreed to work together on combating terror. "We are being challenged by forces of terror. We have agreed to cooperate in this area," said PM Netanyahu "India has suffered first-hand the violence and hatred spread by terror, so has Israel," said PM Modi "The bonhomie that has been a feature of this visit continued. "This is a marriage made in heaven but we are implementing it here on earth," said PM Netanyahu "This is a deeply moving moment for me. We are making history," he added. Modi took on the tone of a global statesman. "Our talks focused on not just areas of bilateral opportunities but also how our cooperation can help cause of global peace and stability," Modi said. At a ministry of external affairs media briefing after the joint statement, Indian foreign secretary S Jaishankar said Israel -- with its expertise in water management, agriculture, and innovation -- was the perfect country for India to partner with. The Israelis, he said, were not only very good at developing new products but also at taking them to market. Explaining the lack of defence deals -- India is one of the largest buyers of defence equipment from Israel -- Jaishankar said many of those are signed between companies, rather than between countries.

India & Israel sign 7 agreements on water, agriculture & innovation, none on defence

More than a quarter of India&#39;s land is turning to desert and the rate of degradation of agricultural areas is increasing, according to new analysis of satellite images.<br />
<br />
A report from the Indian Space Research Organisation says land degradation - broadly defined as loss of productivity - is estimated at 96 million hectares, or nearly 30 percent of Indian land.<br />
<br />
&quot;As a country we should be more than alarmed by this data,&quot; said S. Janakarajan, chairman of the South Asia Consortium for Inter-disciplinary Water Resources Studies.<br />
<br />
&quot;There is no coherent plan to reverse this process or its impact.&quot;<br />
<br />
Analysis of satellite mapping shows new areas in the northern state of Jammu and Kashmir and eastern Indian states like Orissa and Jharkhand turning arid, with nine states together accounting for nearly 24 percent of desertification.<br />
<br />
In states like Jharkhand, Rajasthan, Delhi, Gujarat and Goa, more than 50 percent of land is under desertification.<br />
<br />
&quot;Population pressure has resulted in over exploitation of land for cultivation, grazing, water resources and deforestation leading to degradation of drylands,&quot; Indian minister Jitendra Singh wrote in the report.<br />
<br />
The ongoing study, initiated by the Ministry of Environment, Forests &amp; Climate Change, was led by the Indian Space Research Organisation and involved 19 other institutes.<br />
<br />
It analysed satellite images over an eight year period to compile the atlas.<br />
<br />
&quot;This is the first time we are looking at a digital atlas of degradation and it is pointing at newer areas undergoing desertification,&quot; A.S. Rajawat of the Space Applications Centre told the Thomson Reuters Foundation.<br />
<br />
&quot;It is a ready reckoner to understand where we stand and the impact of land degradation on agricultural productivity.&quot;

A report from the Indian Space Research Organisation says land degradation is estimated at 96 million hectares

More than a quarter of India's land is turning to desert and the rate of degradation of agricultural areas is increasing, according to new analysis of satellite images. A report from the Indian Space Research Organisation says land degradation - broadly defined as loss of productivity - is estimated at 96 million hectares, or nearly 30 percent of Indian land. "As a country we should be more than alarmed by this data," said S. Janakarajan, chairman of the South Asia Consortium for Inter-disciplinary Water Resources Studies. "There is no coherent plan to reverse this process or its impact." Analysis of satellite mapping shows new areas in the northern state of Jammu and Kashmir and eastern Indian states like Orissa and Jharkhand turning arid, with nine states together accounting for nearly 24 percent of desertification. In states like Jharkhand, Rajasthan, Delhi, Gujarat and Goa, more than 50 percent of land is under desertification. "Population pressure has resulted in over exploitation of land for cultivation, grazing, water resources and deforestation leading to degradation of drylands," Indian minister Jitendra Singh wrote in the report. The ongoing study, initiated by the Ministry of Environment, Forests & Climate Change, was led by the Indian Space Research Organisation and involved 19 other institutes. It analysed satellite images over an eight year period to compile the atlas. "This is the first time we are looking at a digital atlas of degradation and it is pointing at newer areas undergoing desertification," A.S. Rajawat of the Space Applications Centre told the Thomson Reuters Foundation. "It is a ready reckoner to understand where we stand and the impact of land degradation on agricultural productivity."

Satellite images show desertification eating into quarter of India's agricultural land

The European Union today announced another 500 million Euros for the bloc&#39;s farmers to help reverse the plunge in prices shaking the dairy industry, bringing the total support to one billion Euros.<br />
<br />
Overproduction of milk since EU quotas were abolished in April 2015 triggered a collapse in prices that have not recovered despite an initial 500-million-Euro ($553 million) aid package announced in September.<br />
<br />
&quot;This package provides a further robust response, and means that the Commission has mobilised more than one billion Euros in new money to support hard-pressed farmers,&quot; EU agriculture commissioner Phil Hogan said.<br />
<br />
&quot;Our ultimate goal is to see the much needed recovery of prices paid to farmers, so that they may make a living from their work&quot;, he added.<br />
<br />
In a breakdown of the funds, which were announced at a meeting of EU agriculture ministers, the bloc will spend 150 million Euros to compensate independent and other producers for each litre of milk they do not produce.<br />
<br />
Another 350 million Euros will be distributed to the 28 member states that will decide what further measures to take to support their farmers. The member states will also be able to match the funds with their own money.<br />
<br />
A combination of factors, including changing dietary habits, slowing Chinese demand, and a Russian embargo on Western products in response to sanctions over the Ukraine conflict, has pushed down prices for beef, pork and milk.<br />
<br />
(AFP)

Changing dietary habits, slow Chinese demand and a Russian embargo on Western product have pushed down milk prices

The European Union today announced another 500 million Euros for the bloc's farmers to help reverse the plunge in prices shaking the dairy industry, bringing the total support to one billion Euros. Overproduction of milk since EU quotas were abolished in April 2015 triggered a collapse in prices that have not recovered despite an initial 500-million-Euro ($553 million) aid package announced in September. "This package provides a further robust response, and means that the Commission has mobilised more than one billion Euros in new money to support hard-pressed farmers," EU agriculture commissioner Phil Hogan said. "Our ultimate goal is to see the much needed recovery of prices paid to farmers, so that they may make a living from their work", he added. In a breakdown of the funds, which were announced at a meeting of EU agriculture ministers, the bloc will spend 150 million Euros to compensate independent and other producers for each litre of milk they do not produce. Another 350 million Euros will be distributed to the 28 member states that will decide what further measures to take to support their farmers. The member states will also be able to match the funds with their own money. A combination of factors, including changing dietary habits, slowing Chinese demand, and a Russian embargo on Western products in response to sanctions over the Ukraine conflict, has pushed down prices for beef, pork and milk. (AFP)

European Union offers milk farmers 500 million Euros to shore up prices

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