The country is anticipating a windfall in crop production this year, most probably more than even 2008, the best year for agriculture till date. This was revealed by Food and Agriculture Minister Sharad Pawar on Friday. He was talking to media persons on the sidelines of the National Conference on Rabi Campaign.

“This (2010) will be one of the best years, which will provide a bumper crop to the country,” said Mr. Pawar. “2008 was one of the years, which the country got a maximum production. Though there is a setback in Bihar, Jharkhand and parts of West Bengal in paddy crop, but still this year, total paddy production will be much more than last year and it will be somewhat near or little more than 2008,” he added.

The minister attributed the jump in production to the increase in area under cultivation for pulses, oilseeds, cotton, sugarcane and paddy. He said that cultivated area is increasing every year.

Referring to the drought affecting crop production, he said, “Last year, the country faced a severe drought in 300 districts, which affected paddy crops. This year, the situation is altogether different and completely satisfactory.”

“Our expectation is that the way the general monsoon situation we have seen, the reservoir position that we have assessed, this will be the most favorable year for crops like wheat and others,” he said. “My ministry will do its best to assist and complement your (states’) efforts by making available all inputs on time,” he added.

Meanwhile, the minister announced a diesel subsidy of Rs 500 per hectare for farmers in the drought-hit districts.

Oman Oil Company has agreed to invest in the Indian fertilizer sector to help in the revival of a few closed plants of Fertilizer Corporation of India (FCI) and Hindustan Fertilizer Corporation Ltd. (HFCL) and in the expansion of Rashtriya Chemicals and Fertilizers (RCF). An agreement to this effect was reached at the 6th Indo-Oman Joint Commission Meeting held in Muscat on Sunday. The Indian delegation was lead by Minister of Commerce & Industry Anand Sharma.

Both countries are planning to set up a senior-level working group with representatives of RCF, Krishak Bharati Cooperative Ltd (KRIBHCO), the Indian government and the Oman Oil Company to kick off due diligence process at the earliest.

The Joint Commission also explored ways to expand the existing capacity of the urea project of the Oman India Fertilizer Company (OMIFCO) from the current 16.5 lakh tonnes per year to 25 lakh tonnes.

Other developments in the bilateral trade talks include a feasibility study for setting up a lube blending plant in Oman by BPCL and Oman Oil Marketing Company for marketing in the neighboring countries.

Oman has evinced keen interest in setting up super-specialty hospitals and diagnostic facilities in India as joint ventures. An Omani delegation would visit India at the earliest to take this forward. Oman is also interested in investing in agro processing, especially in SEZs.

Mr. Sharma emphasized that Indian government is giving top priority to its bilateral cooperation with Oman in petroleum, gas and fertilizer sectors. The bilateral trade between the two countries reached $4.5 billion last year, with the total bilateral investment touching $7.5 billion. Mr. Sharma said that Oman, with its strategic location and existing FTAs with several countries including the USA, offers huge opportunities for Indian companies.

The minister also stressed on immediately operationalizing India-Oman Joint Investment Fund and the need to augment the fund capital. The fund started in November 2008 with a capital of $100 million may be increased to $1.5 billion.

The latest development in the ongoing saga of decontrolling sugar from government control is Agriculture Minister Sharad Pawar meeting the Prime Minister Manmohan Singh on Thursday to present a case for liberating the sector. Earlier the parliamentary panel on food and agriculture had recommended against sugar decontrol, saying that it will harm both farmers and consumers.

The sugar industry, at present, is controlled by government, by specifying the quantity to be sold in the open market and through public distribution system (PDS) every month. With the imminent bumper crop, which will be ready in two months’ time, the move to decontrol sugar is gaining momentum.

The presentation made by Mr. Pawar to the Prime Minister is believed to include plans and methods Food Ministry will be adapting to free sugar industry from governmental control. Mr. Pawar is understood to have discussed the beneficial outcomes of the move for farmers and consumers.

Among the proposals put forth by Food Ministry is doing away with the practice of setting monthly quota for sale of sugar in open market and through ration shops. Now, sugar mills are bound by law to sell 20% of the sugar produced to government for sale in ration shops. To meet the sugar requirement for PDS, the ministry has advocated purchase of sugar from the open market.

It is believed that the Food Ministry has proposed to give freedom to farmers to sell their produce wherever they want to, instead of the present practice of selling sugarcane to specified mills.

Earlier, Mr. Pawar had hinted that despite decontrolling sugar industry, the government would continue to fix Fair and Remunerative Price (FRP) for sugarcane to protect farmers from exploitation. This is the minimum price to be paid by mills to buy sugarcane from farmers.

The Indian industry body, ASSOCHAM has sent a proposal to the External Affairs Ministry to facilitate Indian farmers exploit the opportunities for agriculture presented by some African nations. A few of these countries are offering land on lease for 99 years for free to overseas farmers and countries like China, South Korea and some Arab countries including Saudi Arabia have already made their mark with mega-farms in these countries.

“Hoping to address the huge issue of food shortage, these countries have begun inviting overseas farmers to come and cultivate their lands. These governments are willing to lease land free of cost for 99 years,” said D S Rawat, Secretary General, ASSOCHAM.

The African governments, while offering free leased land, have not placed any restrictions on crop selection or sale of produce. The overseas farmers are free to cultivate any crop and sell it in either domestic market or export the harvest. This makes the arrangement beneficial for both parties concerned.

“It is a win-win situation for the farmers and for the African governments,” says Om S Tyagi, Director, ASSOCHAM. He adds, “Since the lease is for 99 years, it means that a farmer is in control of the land for his life time. It means land for roughly around three generations.”

China, South Korea and Saudi Arabia have already jumped on the bandwagon, established huge farms and begun cultivation of land. A few Indian farmers, mostly from Punjab, have bought land in these countries on their own initiative and set up individual farms. However, according to ASSOCHAM, this endeavor will be more productive if undertaken on a larger scale with the support of Indian government.

The African nations actively canvassing overseas farmers are Sudan, Ethiopia, Zambia, Kenya, Madagascar, Senegal and Mozambique.