Obama’s Wireless Stimulus Package

On the whole, the Obama administration’s new wireless plan is one of the cleanest and most uncontroversial budget proposals in recent memory and it is supported by the fact that the GOP, which is currently balking at most of President Obama’s budget proposals, has not elected to attack this one. The reason is simple; on the face of it, Obamas wireless plan intends to dramatically expand the reach of wireless access providers, and thus, the potential market as well.

Overall, bottom lines will increase, as well the wireless network, allowing access providers to begin to phase out the infamous last mile problem. DSL and Cable Internet are costly to build out and maintain, while wireless is not. With the recent FCC Net Neutrality legislation, it is clear there is a heated focus on expanding wireless infrastructure to shift the bulk of communication to the wireless model. Already, most new phone numbers are mobile. The Plain Old Telephone network is being phased out, and a home phone makes little sense in light of the convenience of cell phones.

Plan Details: The Money

Broadcast Spectrum Auction: One of the key parts of the proposal was the 500 MHz broadcast spectrum auction, currently held by television and radio broadcasters, and would be sold off specifically for licensed mobile access providers. The total cost of the program is currently estimated at $18 billion, and total revenue is $27.8 billion over 10 years, hence the Obama wireless plan will realize a $9.6 billion net gain. Some will go to the current holders of the spectrum to be sold off in exchange for voluntary surrender of the spectrum.

Infrastructure: The next major part of the plan is the investment of $10.7 billion to build a public safety wireless infrastructure. This will provide police, fire, and other public services high-speed wireless access, allowing them to share video and exchange email. While a little vague, the scope of the plan is extensive and would involve dedicating the D Block of broadcast spectrum for public safety. Much of the cash would be spent on towers and infrastructure to support the use of the spectrum. The recent buyback of the Wireless Philadelphia, a multimillion-dollar effort to provide free wireless and its re-tasking to fire and police use is an example of the goal of this phase of the plan.

Other Funding: $5 billion would go to fund an expansion of the Universal Service Fund, ensuring low-income families access to wireless services, and to support companies that invest money in building private infrastructure in areas traditionally too costly to develop profitably. Safelink wireless is an example of this initiative, providing cell phones and monthly airtime to low-income American.

An additional $3 billion would be invested in research and development of wireless technologies in the education, health care, and energy sectors, which would dovetail with existing health care technology initiatives. Additional funds are already allocated in the Commerce and Agriculture Departments through the Recovery Act and will be used to fund wireless development in rural areas.

Effects of the Plan

With the deployment of DTV and the end of analog broadcast television, a starting gun was sounded and the race was on. Much of the news, beginning with Google’s attempt to enter the most recent spectrum auction and the recent FCC Net Neutrality Act has been the pole positions of the race. For many years, the federal government has supported efforts to bring telephone service to outlying areas of the country. Now the government will assist in the expansion of wireless access to replace the existing infrastructure and create a wireless broadband future.

The plan intends to be a win-win effort with commercial entities benefiting from the creation of a much larger market base, and lower cost of wireless access and America benefiting from a major step forward in technological development. Consumers will benefit by having mobile access nearly everywhere. Finally, the taxpayers will realize 9 billion dollars in revenue over the next ten years. It is rare that any federal program is this balanced and universally accepted.

Horticulture Expert The Growth Driver Of Indian Agriculture Sector

The horticulture sector, with a wide array of crops ranging from fruits and vegetables to orchids and nuts, mushrooms and honey – has been a driving force in the stimulating a healthy growth trend in Indian agriculture. India is currently producing 257.2 million tonnes of horticulture produce from an area of 23 million ha. What is significant is that over the last decade, the area under horticulture grew by about 3.8%per annum but production rose by 7.4% per annum. Given the increasing pressure on land, the focus of growth strategy is on raising productivity by supporting high density plantations, protected cultivation, micro irrigation, quality planting material, rejuvenation of senile orchards and focus on post harvest management to ensure that farmers do not lose their produce in transit from farm gate to the consumers plate.

Fruits:

With a production of 76.4 million tonnes, fruits accounts for about 30 per cent of the total production of horticulture crops. The area under fruit crops during 2011-12 was 6.6 million ha, which is almost 29 per cent of area under horticulture in India. The area under fruit crops has increased from 4.0 million ha in 201-02 to 6.7 million ha in 2011-12 with corresponding increase in production from 43.0 to 76.4 million tonnes. A large variety of fruits are grown in India. Of these, banana, mango, citrus, papaya, guava, grape, sapota, pomegranate, pineapple, aonla, litchi, pear, plum, walnut, etc are important. India accounts for 13 percent of the total world production of fruits and leads the world in the production of mango, banana, papaya, sapota, pomegranate, acid lime and aonla.

The leading fruit growing states are Maharashtra which accounts for 16.0 per cent of production followed by Andhra Pradesh (13.0%), Gujarat (10.0%), Karnataka (9.0%), Uttar Pradesh (8.0%), Tamil Nadu (7.0%) and Bihar (5.0%) altogether contributes for about 68.0 percent of the total fruit production in the country. Banana is the major fruit accounting for 35 per cent of total production followed by mango (4.0%), citrus (11.0%), papaya (6.0%), others (17.7%) in the country. It may also be mentioned that in the Himalayan states of Himachal and J&K the GDP from apples, plums, pears and stone fruits exceeds that of GDP from cereal crops.

Vegetables:

Vegetables are also an important constituent in horticulture sector which are mostly low gestation and high income generating crops. Many vegetables are now grown under protected cultivation like green houses and shade nut houses with a scope for off season production, which fetches remunerative prices.
Vegetables occupied an area of 8.9 million ha during 2011-12 with a total production of 155.9 million tonnes having average productivity of 17.4 tonnes/ha.

Vegetable production registered a quantum jump of 77 per cent between 2001-02 and 2011-12.

More than 40 kinds of vegetables belonging to different groups are grown in India in tropical, sub tropical and temperate regions. Important vegetable crops grown in the country are potato, tomato, onion, brinjal, cabbage, cauliflower, peas, okra, chilies, beans, melons, etc. The leading vegetables growing states are West Bengal which accounts for 15% of production followed by Uttar Pradesh (12%), Bihar (10.0%), Andhra Pradesh (8.0%), Madhya Pradesh (6.5%), Gujarat (6.4%), Tamil Nadu (5.8%), Maharashtra (5.7%), Karnataka (5.0%) and Haryana (3.0%) altogether contributes about 83.4% of the total vegetable production in the country. Among vegetables, potato is the major vegetable accounting for 27.0% followed by tomato (12%), onion (11.0%), brinjal (8.0%), cabbage (5.4%), cauliflower (4.7%), okra (4.0%), peas (2.5%) and others (25.4%) in the country. India is the second largest producer of vegetables after China and is a leader in production of vegetables like peas and okra. Besides, India occupies the second position in production of brinjal, cabbage, cauliflower and onion and third in potato and tomato in the world. Vegetables such as potato, tomato, okra and cucurbits are produced abundantly in the country.

Spices:

India is the largest producer, consumer and exporter of spices and spice products in the world. Over 100 plant species are known to yield spices and spice products among which around 50 are grown in India. India is known as the home of spices producing a wide variety of spices like black pepper, chilies, ginger, turmeric, garlic, cardamom and variety of tree and seed spices. Major spice producing states are Andhra Pradesh (19.0%), Gujarat (15.0%), Rajasthan (14.7%), Karnataka (8.0%), Madhya Pradesh (7.7%) and Tamil Nadu (7.0%). The spice production in India is currently estimated at 5.95 million tonnes from an area of about 3.21milion ha.

The production of spices in the country has registered a substantial increase over the last ten years with average annual growth of 5.8%. Chili is the major spice crop occupying about 25% of area under cultivation and contributing 22% of total spice production in the country. Garlic accounts for 8.0% of area with 21.0% share in production, while turmeric accounts for 6.8% of area with 19.6% share in production.

Flowers:

India has made noticeable advance in the production of flowers, particularly cut flowers, which have a good potential for exports. During 2011-12, floriculture covered an area of 0.32 million ha with a production of 2.6 million tonnes of loose flowers and 75066 million numbers of cut flowers. This sector is generating higher income and employment opportunities especially for women.

While India has been known for growing traditional flowers such as jasmine, marigold, chrysanthemum, tuberose and aster, the commercial cultivation of cut flowers like roses, orchids, gladiolus, carnation, gerbera, anthurium and lilium has become popular in recent times. The important flower growing states are West Bengal, Karnataka, Maharashtra, Andhra Pradesh, Tamil Nadu, Odisha, Uttar Pradesh, Jammu & Kashmir, North East, etc. Major area is devoted to production of marigold, jasmine, roses, chrysanthemum, tuberose, etc. The area under cut flowers having stems has increased manifold. Orchids, anthurium, lilium, gerbera and seasonal bulbous flowers are increasingly being grown both for domestic and export markets.
Growth in Exports:

Not only have these impressive production figures ensured a steady supply for the domestic market, they have also made Indian horticulture exports globally competitive. Over the last decade, there has been a significant improvement in export earnings in horticulture.
The horticulture division is working closely with APEDA and state governments to ensure that infrastructure and institutional support for export is available to ensure that farmers can leverage export markets for higher incomes.

Agriculture Not Be A State Subject

CII today organized a Seminar on Reforms in the APMC (Agricultural Produce Market Committee) Act , and its impact in the Southern States. This is an initiative of the Agri Business Sub-Committee, CII-Southern Region. Speaking at the occasion, Mr. Shankarlal Guru, Chairman-International Society for Agricultural Marketing said Agricultural sector is in urgent need of reforms by the respective State governments to help drive the economy to a higher growth rate that is expected by the policy makers, but a comprehensive agenda for reforms in this crucial sector is yet to emerge. Hence, the need for Agriculture to be made a central subject and not a state subject, thus alienating it from politics, said Mr. Guru. Contract farming should be encouraged as it will help bring technology and modern practices into the agriculture sector – opined Mr. Guru.

The APMC Act in each state of India requires all agricultural products to be sold only in government – regulated markets. These markets impose substantial taxes on buyers, in addition to commissions and fees taken by middlemen, but typically provide little service in areas such as price discovery, grading or inspection. A key impact of this regulation is the inability of private sector processors and retailers to integrate their enterprises directly with farmers or other sellers, eliminating middlemen in the process. Farmers also are unable to legally enter into contracts with buyers. This leaves no incentives for farmers to upgrade, and inhibits private and foreign investments in the food process sector.

Also addressing the audience was Mr. Sivakumar, Chairman Agri Business Sub-Committee, CII-Southern Region and Chief Executive – Agri, ITC Ltd. Said that Agri business in India is at a transition point. Having sailed through the shortage economy to an economy with surplus in grains, it is important that Governments at the Centre and State recognize the need for inclusive growth to take agriculture forward in India. Setting the context for the day’s discussion, Mr. Sivakumar emphasized that in spite of employing about 57% of the population of the country, agriculture on contributes 27% to the GDP of India. This distortion makes agriculture not a lucrative employment generator and hence, keeping with the global view, India needs to carve out opportunities in agri-exports sector. Contract farming and direct marketing to retail chains and processing units are the need of the hour he said.

Regulations to keep pace with these needs are required, which need alternative marketing mechanisms. Hence, reforms in the APMC Act are recommended in various fields, he added.

Making a presentation on “Aligning State Policies with emerging new marketing models”, Prof. S Raghunath from the Indian Institute of Management-Bangalore, emphasized the need for an effective and efficient distribution system for agri-produce and provision for supply-demand transparency. Since the main objective of the APMC Act was to prevent exploitation of farmers by various intermediaries, reforms were required in the Act, with changing face of agriculture and the agricultural supply chain, opined Prof Raghunath. India is the largest producer of vegetable in the world, with a total share of 15% of global produce. 8% of world’s fruits are produced in India, ranking it second in the world market. In spite of this, there is a high cumulative wastage of 40% in India, informed Prof. Raghunath. Inadequate infrastructure and lack of organized supply chain were the main cause for such a disparity, he said. Thus, reforms in this sector need to catch up with the pace of development in the economy and dis-intermediation and participation of organized players in the sector will remove the lacunae, opined Prof. Raghunath.

Centre asks states to amend APMC Act

In a move to allow farmers to directly sell their produce to industry, contract farming and setting up of competitive markets in private and cooperative sector, the Centre has asked the state government to amend the Agricultural Produce Marketing Act.

Under the present Act, the processing industry cannot buy directly from farmers. The farmer is also restricted from entering into direct contract with any manufacturer because the produce is required to be canalised through regulated markets. These restrictions are acting as a disincentive to farmers, trade and industries.

The government has recently approved a central sector scheme titled Development/strengthening of agricultural marketing infrastructure, grading and standardisation.

Under the scheme, credit linked investment subsidy shall be provided on the capital cost of general or commodity specific infrastructure for marketing of agricultural commodities and for strengthening and modernisation of existing agricultural markets, wholesale, rural periodic or in tribal areas.

The scheme is linked to reforms in state law dealing with agricultural markets (APMC Act). Assistance under the new scheme will be provided in those states that amend the APMC Act.

The Centre has asked the state governments to inform as to whether necessary amendments to the APMC Act have been carried out, in order to notify the reforming states for applicability of the scheme.

Along with the Centre, the industry is also interested in the amendment to the APMC Act as it restricts the growth of trade in agricultural commodities.

The policy regime pertaining to internal trade is particularly restrictive. The agricultural sector continues to be hamstrung by a plethora of controls, which were introduced during the era of shortages, said the PHDCCI.

Meanwhile, a decentralised system of procuring wheat and rice would make the Public Distribution System more cost effective, the government has said.

eGov KE Srinagar – Inaugural – Dr Killi Kruparani, Minister of State, Ministry of Communications an

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