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Govt needs to create crop neutral incentive structure: FICCI
Source: IRIS | 20 Mar, 2014, 03.53PM
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Ashok Gulati, chair professor for agriculture, ICRIER urged the government to create a neutral- incentive structure for all crops, including maize, to give a boost to the production of the crop.

Gulati said that in the past, when corporates tried to acquire land for farming in tribal areas, NGOs had raised objections. He suggested that a Tripartite agreement could be arrived at among corporates, farmers and NGOs to help building synergy among the three parties rather than creating friction.
 
The summit aims to create favorable framework to successfully meet the challenges and opportunities for Indian maize crop, get global perspective to aid growth in export of Indian maize, identifying, examining and suggesting reforms to strengthen maize value chain and empower relevant stakeholders with cutting edge technology and post harvest management tool.

Gulati added that the government policies should support scaling up production of quality protein maize (QPM). India, he said, faces the issue of malnutrition, hence, adding eggs rich in maize protein to midday meal provided in schools would benefit young children and create a large market base for corporate opting for maize production.

Also for sustainable growth of maize, it is essential to vigorously propagate the crop as animal feed and enlarge the export basket, he said.

Gulati stated that domestic prices also play a critical role in determining demand. If the domestic price is higher than those prevailing globally, the demand of maize for export will decrease resulting in lower production.

Samir Shah, managing director & chief executive officer, NCDEX, said that India was on the threshold of a maize revolution. The introduction of new hybrid seeds that can survive low winter conditions, off-season diseases and pests with high productivity has made maize a profitable alternative even for small farmers in UP, Bihar, Andhra Pradesh and Karnataka. Increase in rabi production, along with increased acreage and supply, has turned India into a net exporter. The rise in rural incomes has provided a further fillip to demand for cereals and protein foods and shifted poultry farms from backyards to organized business.

A Didar Singh, secretary general, FICCI, said that corn production has nearly doubled from around 12 million tonnes a decade ago to around 23 million tonnes. This increase in the production has resulted in expanding the export market of the crop.

He added that the sector also witnessed active participation of the private players which helped in driving Private Public Partnerships successfully. The challenge for the maize industry was to match up to international standards.

Sanjay Kaul, Co-Chairman, FICCI Agriculture Committee, said the government needed to ensure that there was a stable trade policy in place. Major changes in country’s trade policy every year make the investors uncertain. Also, a price mechanism needed to be created which ensured that domestic prices do not go overboard.

He added that FICCI would help in strengthening the process of ongoing reforms in different value chains, which would empower the farmers and create a viable environment for investors.

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