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Agriculture Strategy

Farmers to produce what the market wants

For the first time, the state government is going to regulate the production of crops in India. Farmers in Telangana are going to produce what the market wants. It’s a big move in the right direction and will set ground for a new beginning of Demand Driven Agriculture. This Kharif season, the farmers will be asked to grow paddy on 50 lakh acres (including the Telangana Sona variety on 10 lakh acres of land), cotton on 50 lakh acres and red gram on 10 lakh acres. Farm lands nearer to urban areas will grow vegetables and horticultural crops to tap the demand.

“One should cultivate crops which sell well. They don’t buy whatever you produce”.

Telangana Chief Minister K Chandrashekar Rao

Asking the farmers to strictly adhere to the cropping pattern, Chief Minister K Chandrashekar Rao has said that government sops such as ‘Rythu Bandhu’ (₹5,000 each for farmers in both the seasons for every acre they own) will be stopped to the farmers who don’t conform to the cropping plan.

Farmers base next years supply purely on the previous price and assume that next year’s price will be the same as last year (adaptive expectations). These fluctuations in price may cause some farmers to go out of business.

Limitations of Cobweb theory

As the government is attempting to go beyond advisory and extension roles, it will revamp the Department of Agriculture to take up additional responsibilities. The government will also bring in necessary amendments to the Seed Act.

Read more at The Hindu Business Line

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How Satellites Can Improve Decision-Making For Agricultural Investments

USDA information about crop supply and demand estimates is fundamental to both policy-makers and agricultural investors. Nevertheless, the current situation with markets and crops is changing faster than USDA report releases, especially with the uncertainty around coronavirus pandemics. The uncertainty caused by the outbreak of the COVID-19 reinforces the need for reliable, precise, politically neutral, and promptly available data for investors.

Here’s where digital tools can come in handy.

Geospatial intelligence, supply-and-demand estimates, crop tours, experimental plots, direct contact with grain producers are among the most effective ways to gather much-needed data. Agricultural investing is entering in the ‘remote prediction’ era where the one with superior AI tools has the edge. This is where satellite technologies can close informational gaps – and do it faster than once a month.

Read more at Investing.com

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Natural alternatives to plastic – trays made from sugarcane pulp

Baggase trays, a natural alternative to plastic trays are made from sugarcane pulp, also known as bagasse. These trays are certified home compostable to Australian and European standards. The tray can take shrink wrap and flow wrap and it can also be heat-sealed which means using much less plastic for sealing. Biopak, the company behind this innovative product, developed them in close consultation with fresh produce growers and packers. There are a lot of market forces in play for the development of these trays which includes sustainability targets and legislative changes but the biggest one is consumer attitude, now more than ever, consumers are looking for more sustainable choices.

Sugarcane pulp, the raw material for manufacturing of baggage trays, is derived from sugarcane. It is a by-product of sugar manufacturing, so it’s primarily a use of waste product to make something new and sustainable from it. The sugarcane pulp is pressed under high pressure with steam so it gets a very tight surface making it moisture repellent and it can be used in both chill and ambient environments, it can be frozen, oven-heated and microwaved.

Read more at FreshPlaza