India fuel inflation at 14.27 pct y/y as at July 10

July 22 (Reuters) – India’s fuel price index rose 14.27 percent in the year to July 10, while the food price index climbed 12.47 percent, government data released on Thursday showed.

Fuel price inflation was flat on the previous week’s annual rise, while the pace of food price inflation accelerated from last week’s 12.81 percent.

The primary articles index was up 16.48 percent, compared with the previous week’s reading of 16.25 percent.

While normal rains would cool food inflation after last year’s spike following the worst drought in nearly four decades, a fuel price hike last month would keep pressure on the headline inflation.

Wholesale prices INWPI=ECI, the most closely watched inflation gauge in India, rose 10.55 percent in June from a year earlier, remaining above 10 percent for the fifth straight month. (Reporting by Rajesh Kumar Singh; editing by Malini Menon)

RBI to come out with a report on food inflation

Kolkata, May 11 (ANI): Reserve Bank of India (RBI) Deputy Governor Subir Gokarn said the bank would come out with a report on food inflation in a few weeks time.

Talking to reporters here, Gokarn said that the paper would study the impact of monsoon on the food price rise and whether the rise in excessive demand for sugar, milk and pulses indicated a shift in the nutritional choices of the people.

He also said a good monsoon should augur well for the food prices.

“I have no control over the monsoons, I have no idea as to how the monsoon process will play out. We are getting initial forecast of the monsoons being normal but ultimately the process, the path of the food prices in the short term over the next few months will depend significantly how good the monsoons are,” he said.

“So, if we have a normal monsoon across the country we should see the food prices started to come down over the course of the next few months,” he added.

According to the government data, India”s annual food inflation hovered around 16.04 percent for the week ended April 24.

Inflation is spreading to non -food manufactured items, which may keep pressure on overall inflation. Last month, RBI tightened its monetary policy with a view to arresting food inflation from spreading to other sectors.

Last year, the government”s forecast of a normal monsoon proved wrong and the country grappled instead with a baking drought caused by its driest monsoon in 37 years.

Good rainfall would help India”s farm output rebound after last year”s drought, which triggered a sustained rise in inflation that boosted food prices 17.7 percent in the 12 months to April 10, and fuel prices by 12.5 percent. (ANI)

New drought relief package to be trialled in WA

The Federal Government is taking a cautious approach to its new drought support policy and will trial the idea of grants in the good times in Western Australia, where no farmers are drought affected.

The Government promised that farmers in drought-affected areas who are receiving assistance will continue to receive income relief and interest rate subsidies until the drought is over.

About 6,000 farmers from Karratha to Esperance will be able to apply for relief measures under the program which will be trialled for one year.

Measures include financial grants for farmers experiencing hardship or who are trying to exit the industry, as well as a new focus on mental health services in farming communities.

WA Agricultural Minister Terry Redman says the current exceptional circumstances system does not help drought-stricken farmers soon enough.

“The current arrangements have a very reactive focus where we need to request to the Federal Government to have an area declared as exceptional circumstances,” he said.

“In essence that is two consecutive years of worse-than-one-in-25-year conditions. We presently have no declared areas and would not be eligible for that until at least January 2012.”

Mr Redman’s federal counterpart, Tony Burke, says the proposed new system will start on July 1.

“Normally the approach that governments have adopted is when times are in crisis we’re there and we’re helping out, and when times are good, the government normally disappears from the scene,” he said.

“This is the first time that we’ve decided to say, ‘hang on, when times are good, let’s not bail out’.

“Let’s actually stay there then [and] help farmers prepare for the future so that next time there is a crisis, fewer people hit that crisis.

“In terms of the wellbeing of a farmer, it’s a much better deal. In terms of productivity for the nation, it’s a better deal for the country as well.”

Purple pokeberries may hold secret to cheap solar power

Washington, Apr 30 (ANI): Pokeberries, the weeds that kids smash to stain their cheeks purple-red, may help spread solar power across the globe, believe researchers at Wake Forest University”s Center for Nanotechnology and Molecular Materials.

Nanotech Center scientists have used the red dye made from pokeberries to coat their efficient and inexpensive fiber-based solar cells. The dye acts as an absorber, helping the cell”s tiny fibers trap more sunlight to convert into power.

Pokeberries proliferate even during drought and in rocky, infertile soil. That means residents of rural Africa, for instance, could raise the plants for pennies. Then they could make the dye absorber for the extremely efficient fiber cells and provide energy where power lines don”t run, said David Carroll, Ph.D., the center”s director.

“They”re weeds,” Carroll said. “They grow on every continent but Antarctica.” (ANI)

Rajasthan”s cattle facing water shortage

Jaipur (Rajasthan), Apr 24 (ANI): The cattle owners in Rajasthan are facing acute shortage of water, as the water bodies have dried up here.

The problem has been aggravated because of a drought like situation in 26 out of 32 districts of Rajasthan.

They have to carry water from far off places because of the water scarcity.

“We have to travel two kilometres away to get water for them. We are facing lots of problem because of water scarcity. Water is not even there in the tube wells all of them are totally dry,” said Jagannath, a cattle owner.

“We have to pass this 3-months time and we are finding it very tough to quench the thirst of our animals,” he added.

It is reported that the scanty and extremely poor rainfall has created a tough situation for all the cattle owners of Rajasthan during this summer.

“Earlier, we used to get water from nearby tube wells, rivers and animals used to drink water on their own but now we are facing lot of problems. We have to travel long distance of about two kilometres to get water for them now and because of the poor rainfall during the last few years, we are facing lot of problems,” said Abdul Jabbar, a cattle owner.

The situation is worst in the districts of Bikaner, Jaisalmer and Barmer, where most of the farmers are totally dependant on animal husbandry to earn their livelihood. (ANI)

Blue-green algae outbreak over

The outbreak of dangerous levels of blue-green algae along the Murray River has ended.

The red alert for the potentially toxic algae has been lifted and an amber alert is now in place for the river, from Lake Hume to Wentworth.

The Regional Algal Co-ordinating Committee’s Owen Russell says the water can now be used for recreation.

He says cooler weather, rain and increased water flows have helped disperse the algae.

“The levels have dropped right down,” Mr Russell said.

“We always will see some algae in the river system, it’s a naturally occurring organism and we expect to see it there at times.

“But really the levels it’s at at the moment are so low, that it really has no effect on us as humans.”

He says this year’s bloom is similar to the algae outbreak along the Murray River last year.

“They pretty much occurred around the same time as last season,” he said.

“We can probably link that really with the drought that’s been underway for a number of years and the low flows that are going through the river system, as well as nutrient levels in the water and lots of sunlight.”

Diocese needs its own bishop to survive: Priest

A Parkes Catholic priest who has been elected to represent clergy across almost half of New South Wales says the area needs its own bishop to help it survive.

The church is considering a proposal to dissolve the Forbes-Wilcannia diocese because of falling parishioner numbers and not enough priests.

Those opposed to the idea have elected three bishops to argue their case.

Father John Keeble says just like other dioceses Forbes-Wilcannia is suffering from drought and unemployment, but it has been hampered by not having a full-time bishop.

“You need a bishop because if anyone of us is trying to negotiate with other bishops, or bishops overseas to bring priests out here they really don’t want to talk to a priest they want to talk to a bishop,” he said.

The bishops will consider the future of the diocese in June.

Chela shocks Querrey to end drought

Juan Ignacio Chela won his first ATP title in more than three years as he toppled third-seeded American Sam Querrey 5-7, 6-4, 6-3 at the US Men’s Clay Court Championships in Houston.

The unseeded Argentinian turned up the heat in the second set as he pulled away from Querrey for his fifth ATP title and his first since he beat Carlos Moya for the crown in Acapulco in March 2007.

Chela sealed the victory when Querrey belted a service return over the line.

Querrey, ranked 25th in the world, hit 19 winners to just two for Chela in the opening set.

By the end of the second set, however, Chela was swinging freely and matching Querrey winner for winner.

The victory will push Chela up some 30 places in the world rankings to around number 50 when the new rankings are released on Monday.

The 30-year-old veteran, a former number 15, was last in the top 50 in July of 2008.

Querrey was Chela’s fourth straight seeded victim here.

He upset seventh seed Eduardo Schwank in the second round, number four and and defending champion Lleyton Hewitt in the quarter-finals, and number six Horacio Zeballos in the semi-finals.

Bumper walnut crop

Tasmania’s walnut production has doubled since last year and the crop is now gaining international recognition for quality.

At Swansea on the state’s east coast, walnut farm manager Rodney Jones says the drought in previous years has ravaged the crop, but ideal growing conditions this season have produced a bumper harvest.

“It’s really good, we’ve been here for a few years now and it’s been a hard slog to get to this point,” he said.

“Every year from now on we should start to increase so its pretty exciting for me and the staff here.”

Good rainfall has improved the quality of the nuts and wind machines have been set up at the Swansea walnut farm to eliminate the threat of frost.

John Hosken from Walnuts Australia says orders are pouring in from around the world.

“We’ve doubled the tonnage this year to around 800 tonnes up from 400 last year and we’ll continue to grow that tonnage over the next couple of years,” he said.

“It’s very encouraging, the demand for our product is high, the cool climate growing gives us softer shells so its easier to crack and our colour, we produce a lot of extra light kernel which is in high demand through the main markets in Europe and the Middle East.

Local walnuts will soon be making their way to countries including Spain, Italy and China.

The industry is now worth about $4 million to the state.

Positive Hardwick focusing on way forward

The magnitude of the task facing first-year Richmond coach Damien Hardwick was clear for all to see during Saturday night’s loss to Sydney at the SCG.

The Tigers were totally outclassed in all areas, taking almost 50 minutes to kick their first goal and ending up on the wrong end of a 16.15 (111) to 7.14 (56) hiding.

So it was bold and somewhat surprising to hear Hardwick even mention the prospect of a drought-breaking Richmond premiership being anywhere on the horizon.

He knows it is still a long, long way away, but he certainly seems up for the fight of turning a once-proud club that has become virtually a laughing stock back into one of the AFL’s elite.

“We’ve got a plan. We know where we’re at and we know where we’re going,” he declared when asked if Richmond’s troubles are bigger than he anticipated when he took the job.

“For us it’s all about getting that 11th premiership. So next week’s game is another learning curve and another step forward.

“We started this process with the end in mind and we’re working our way back towards that.”

The team’s next game is an MCG clash with Melbourne on Sunday.

While it was put to Hardwick as a possible wooden-spoon showdown, the Demons have shown more than Richmond so far, following a one-point loss to Collingwood with a victory over Adelaide on Sunday.

On the plus side for the Tigers, teenager Dustin Martin stood out against the Swans, while the likes of Trent Cotchin and Daniel Jackson have already shown they have the talent to become accomplished AFL players.

The contest was over at half-time when the Swans led by 52 points, but the Tigers held their own to some extent after the break, losing the second half by just three points.

“To their credit I think the second half was pretty even,” Sydney coach Paul Roos said.

“They came back and tested our guys.

“They’ve got some good players and they’re going to get better and better.”

Despite their obvious troubles, having started the season with three heavy defeats, Hardwick has already seen some encouraging signs.

“We’ve got a game plan we’re trying to implement both offensively and defensively and when we get that right the results will come thereafter,” he said.

“Every time we go out there we learn something about this group and how they play.

“We’ve got a fair way to go. I thought we took another step forward this week and I think our fans will have seen some fairly exciting players.

“Next week is another chance for our players to learn.”

Support night to unite community

People living around Packsaddle are encouraged to attend a social and support night tonight, hosted by the south-eastern section of the Royal Flying Doctor Service.

The night is also organised by local support groups, and is designed to bring people together along with giving them information, whether it be financial advice, funding assistance or counselling.

A drought support worker from the Department of Industry and Investment, Danny Byrnes, says he hopes people take something away from the evening.

“A better understanding of mental health, hopefully some of the stigma is taken away again we keep breaking down the stigma of mental health and just a night where they can go home and say that was good, that was good to have a chat with their mates and maybe having an awareness of looking out for each other in these times,” he said.

A social and support night is also planned for Tibooburra on April 23.

Thunderstorms flood outback SA

Thunderstorms have lashed Roxby Downs in outback South Australia, flooding roads and several properties in the town.

The first storm hit about 7:30pm on Thursday and another front swept through early Friday.

More than 85 millimetres of rain fell at the airport.

Service station worker Terry Luckett says it has not rained so hard in at least 20 years.

“Quite used to Queensland weather and it sort of resembled that for probably two or three hours there. It just constantly was coming down, quite heavy,” he said.

“On and off I’ve been here since 1990, so [in] 20 years this is the first time we’ve seen it like this.”

Vicky Visser owns a cafe in Richardson Place which has been flooded.

“I pulled up at the shop and literally had to wade through knee-deep to get into the shop,” she said.

“We have had all night in clean-up so the coffee machine is on and the food is getting hot and the sandwiches are getting made so we’re going to be, hopefully, all systems go, albeit a little rearranged.”

More than 85 millimetres has also been recorded at nearby Andamooka.

Dams are overflowing and houses have been flooded.

Supermarket owner Cassandra Lion says the water rushed down the main street.

“One gentleman we found this morning on the roof of his four-wheel-drive that’d been spun around 180 degrees by a surge of water and he was trapped there,” she said.

“At one stage the water was actually halfway up his front windscreen.

“There are a couple of houses across the creek from where I am at the moment that were under water.”

Another Andamooka resident Kyle Christensen says it is the best rain he can remember since 1975.

“We’ve had so many years of drought and that that we’ve been probably looking for this rain and then all of a sudden instead of it raining a normal rain it just buckets down,” he said.

Senior forecaster Peter Webb says the rain is continuing.

“We still currently have a severe thunderstorm warning for an area covering Marla from Coober Pedy down to just north of Port Augusta and up to Moomba, so that wedge of area up in the north-east pastoral, including the northern parts of the Flinders, can expect further thunderstorms with heavy falls during the morning,” he said.

More than 60 millimetres fell at Leigh Creek in the 24 hours to 9:00am and 33 millimetres fell at Woomera.

Crop hopes

In other areas of the state, farmers are considering an early start to seeding because of this week’s rain.

Many are already reporting good soil moisture.

Rural consultant Barry Mudge says farmers need to weigh up how they will manage to avoid frost damage during the winter months and any early heat in spring.

He says some Mallee farmers have already planted feed crops but farmers usually wait on good rains around Anzac Day.

“My feeling from talking to a lot of farmers is they’re saying, ‘yeah, perhaps we can come maybe a week earlier than we’re used to,’ but a lot of people are saying, ‘look, we need to get through to at least April 20,’ and even then it’s only going to be done as a bit of a risk management tool,” he said.

Bega Valley pipeline a step closer

A move to drought-proof the southern half of the Bega Valley Shire on the New South Wales far south coast is a step closer.

Construction of a new pipeline that will transfer water from the Bega River to Yellow Pinch Dam, north of Merimbula, is expected to begin within two months after a successful contractor to supply pipes and fittings was announced this week.

The Shire’s Mayor, Tony Allen, says the 20km pipeline will save water that would otherwise flow out to sea, improving the stability of the supply for towns such as Merimbula and Eden.

Councillor Allen says the pipeline will only be used during high-flow events.

“The pipeline has been designed to have the capacity to pump huge amounts of water,” he said.

“The actual project is engineered so that the pipeline may be only used 40 or 50 days a year depending on rain events, and depending on stream flows.

“Of course, once the dam’s full then there’s no need to pump water into it.”

Councillor Allen says final negotiations are underway with landowners along the proposed route of the pipeline.

For more, go to the South East News blog at http://bit.ly/dgL1SN

FACTBOX-Australian 2010/11 wheat crop forecasts

SYDNEY, April 8 (Reuters) – Rabobank raised its forecast for Australia’s 2010/11 wheat harvest by 9 percent on Thursday, after soaking rains in many grain-growing regions.

The Dutch-owned bank estimated a harvest of 21.8 million tonnes, up from its March 4 forecast of 20 million tonnes.

It cautioned that rain over the next two months would be critical to the outlook as farmers starting seeding crops for harvesting, which usually starts in October.

Australia, the world’s fourth-largest wheat exporter, reaped 21.7 million tonnes of grain in 2009/10, the second straight year of an above-average crop as production continued to recover from a severe drought in eastern Australia.

The Australia wheat crop has averaged 18.3 million tonnes over the five years to 2009/10, hurt by the drought which cut the harvest to as little as 10.6 million tonnes in 2006/07.

Rabobank said wheat acres were likely to be less than last year as farmers switched to crops offering higher returns such as cotton and pulses, including chickpeas and lentils.

The government’s commodity forecaster estimated in March that 13.1 million hectares were planted with wheat in 2009/10.

Estimates of Australia’s 2010/11 wheat crop from private and government forecasters:

* Rabobank Australia

Crop: 21.8 million tonnes

Issued: April 8

Next update: to be advised

Methodology: Based on a mix of analysis and anecdotal information from a network of contacts through Rabobank’s branches in Australia. Information is received from farmers on planting expectations, with updates on yield expectations as the season progresses.

* Australian Crop Forecasters (private consultant) Crop: 22.5 million tonnes

Issued: April 6

Next update: to be advised.

Methodology: Based on surveys of industry participants, the group’s private database, physical inspections and on-the-ground contacts.

* National Australia Bank

Crop: 22.6 million tonnes

Issued: Mar 26:

Next update: to be advised

Methodology: Based on information from the bank’s regional agribusiness managers’ network and surveys with regional industry participants and economists.

* U.S. Department of Agriculture Canberra attache Crop: 22 million tonnes.

Issued: March 18

Next update: to be advised

Methodology: Field surveys, information from industry sources, “all sources”.

* Commonwealth Bank of Australia

Crop: 20 million tonnes

Issued: March 4

Next update: to be advised

Methodology: Surveys of growers, bank staff in the field and industry officials. Modelled yields based on observed seasonal conditions plus medium term seasonal outlook.

* Australian Bureau of Agricultural and Resource Economics (government department)

Crop: 21.94 million tonnes.

Issued: March 2

Next Update: June 16

Methodology: Based on physical farm survey data, information from bulk handlers and state agricultural departments and computer modelling.

RECENT PRODUCTION

YEAR Million tonnes

2009/10 21.656 (ABARE)

2008/09 20.938

2007/08 13.039 (drought)

2006/07 10.641 (drought)

2005/06 25.173

2004/05 21.905

2003/04 26.132 (record)

2002/03 10.132 (drought)

2001/02 24.299

EXPORTS

YEAR Million tonnes

2009/10 13.874 (ABARE forecast)

2008/09 14.568

2007/08 7.444

2006/07 8.685

2005/06 15.969

2004/05 14.675

2003/04 17.867

2002/03 9.107

2001/02 16.317

KEY FACTS

- Australia is the world’s fourth-largest wheat exporter, with about 8 percent of world trade. Its major customer is Indonesia.

The wheat export industry was liberalised in 2008 when a monopoly held by AWB Ltd (AWB.AX), the former Australian Wheat Board, was replaced with a system of licensed exporters.

AWB is one of the licensed exporters, competing with groups such as Cargill Inc [CARG.UL], Louis Dreyfus, Glencore International and Bunge. (Compiled by Bruce Hextall)

MP questions irrigation shutdown legality

A northern Victorian federal MP is questioning whether water managers can legally shut down the Campaspe irrigation system.

Seventy per cent of Campaspe irrigators have voted to sell their water rights to the Commonwealth for the environment, after years of drought.

But the Liberal Member for Murray, Dr Sharman Stone, says an application has not been made to the Federal Government to buy the water.

She says under the state constitution, the Victorian Government must continue operating the system.

“Under this particular part of the constitution, and I’ve had legal advice on this, it isn’t simply a case of Goulburn Murray Water saying ‘we’re going to turn this water delivery service off – we simply think that all of you must cease having your water delivered to you’,” Dr Stone said.

The executive manager of modernisation for the northern Victoria irrigation renewal project, David Kent, disagrees with Dr Stone.

He says the community has decided to stop irrigating and the systems will be amalgamated.

Task force tackles GP drought

A task force has been formed in Allora on Queensland’s southern Downs with the sole aim of luring a full-time GP to the town.

The town has been without a GP since Christmas and 600 people recently attended a meeting to discuss the issue.

Task force chairman John Constable says the first priority will be to improve existing medical facilities.

“First off our facilities here aren’t really designed for a modern medical practice,” he said.

“So what we’re trying to do, with the help of council, is upgrade the old shire offices into … a much more functional building than what we’ve got.”

Towns dry up in drought-stricken NZ

As drought continues to grip northern parts of New Zealand, one town will soon start trucking in water.

The region surrounding Kaitaia is facing its worst drought in 60 years.

Much needed rain over Easter did not hit the northern part of New Zealand and Kaitaia will start trucking water in two weeks.

The Northland regional council says it will put the needs of people before that of fish and other fauna in the rivers.

Some farmers have destocked by as much as 50 per cent and they now face large feeding bills heading into winter.

,production in the area has also been halved.

Many farmers have compared it to the ongoing drought in parts of Australia.

Rajasthan villagers appoint security guards to prevent water theft

Bikaner, Apr. 1 (ANI): Acute water shortage in Rajasthan is forcing residents of a village near Bikaner to maintain a tight vigil on village water bodies to prevent water theft.

Four security guards have been appointed to protect the pond round the clock from both outsiders and animals.

“There are 8000-9000 villagers in our village, and, they depend on the water for their needs. So, four security guards protect the pond by turns,” said Ram Lal, a villager.

Guards distribute water to villagers according to the number of members in each family.

“We guard the water from outsiders. The villagers have appointed us,” said Hari Singh, a security guard.

For five years, the area has not received any rainfall.

The state government has declared a drought in twenty-seven districts of Rajasthan. (ANI)

SAFF pushes for continued drought aid

The South Australian Farmers Federation is joining calls for financial help to be continued for drought stricken farmers in parts of the state.

Exceptional Circumstances assistance ends today for 11 of the state’s 15 regions, including the south-east but it will remain in the Riverland and Mallee.

SAFF president Peter White says urgent action is needed for drought sub-regions to be established to stop serious economic and social implications.

“It’s important that they embrace this idea and there’s a precedent already been set where they reinstalled some sub-regions so we’re not asking for something they’ve never done before and certainly we would be looking as soon as possible to meet with Michael O’Brien to run through it with him and hopefully get his endorsement,” he said.

Drought-hit farmers offer up irrigation entitlements

The prolonged drought has prompted 60 farmers in south-west New South Wales to offer their irrigation entitlements to the Federal Government under its buyback program.

They are offering to sell about 42,000 megalitres of water entitlements along irrigation channels in the Wakool area west of Deniliquin.

The estimated sale price is between $50 million to $60 million.

Murray Irrigation Limited has taken the offer to the Federal Government and its chairman, Stewart Ellis, says some of the sellers may retire rather than continue farming without water.

“They’ve assessed their own situations and given the tough years of drought and low water allocations, we’ve had two years of zero and then a 9 and now a 22 per cent allocation this year, so they’ve been particularly tough years on the farm,” he said.

“They’ve come forward on a voluntary basis, put forward their own proposal which has been assessed by Murray Irrigation and then put together into a proposal and taken to the Commonwealth Government for consideration.

“What the people are looking for is something over and above the market price of water entitlements.

“They’re not just looking at selling all of their water.

“They’re actually selling all of their water and disconnecting their farms permanently from a connection to our channel system, so they will truly be dryland farms in the future if this proposal is accepted.”

Mr Ellis says the sale would mean the closure of more than 100 kilometres of channels.

“The proposal is that the infrastructure like within Murray Irrigation’s channel system, the bridges, culverts, regulators, would be removed and the channels actually filled in, so it is a physical disconnection from the system,” he said.

“We would say this type of buyback is a more strategic approach because all of these schemes that have come forward for closure are either on the end of channel systems or on the end of spur channels, so there’s no-one actually irrigating on the channel below them so we can actually close down that section of channel, so in effect this type of buyback should be helping the rest of remaining irrigators because it leaves Murray irrigators with a smaller footprint and a more efficient delivery system as a result.

“We’re expecting something back from the Government this week and then we have a meeting arranged with these proponents on the 12th of April, so whatever the offer that comes from the Government will be passed onto the people, to the proponents of these shutdowns.

“Then we’ve got this meeting arranged on the 12th to ascertain how many of them want to be part of the deal and whether we’ve got a deal going forward.”