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FAO calls special meeting on food market tensions

September 3rd, 2010 No comments


ROME — The UN’s food and agriculture body on Friday called a special meeting to address growing tensions on the food markets, as Russia prolonged a wheat export ban and food riots broke out in Mozambique.

But the Food and Agricultural Organization (FAO) said the September 24 gathering was not an emergency meeting and dismissed any comparison with the situation in 2007-2008.

During that period, food shortages and the resulting price rises sparked riots throughout the developing world.

“The fundamentals are right, they are not those before the crisis in 2007 and 2008,” an FAO official insisted.

“There are plenty of stocks and prices are below the peaks of 2008. But there is lots of turmoil.”

Abdolreza Abbassian, an economist and grain analyst at FAO said although the organisation did not fear a new crisis, “there is already some anxiety on the markets.”

Russia’s announcement “will prolong anxiety and volatility,” he added.

Prime Minister Vladimir Putin said Thursday that Russia, a major world producer, would not lift a ban on grain exports before next year’s harvest.

That extended the embargo until at least mid-2011 after a record drought destroyed a quarter of Russia’s harvest.

In Mozambique meanwhile, seven people were killed and 288 injured during riots Wednesday and Thursday over rising bread and fuel prices in and around Maputo, the capital of the country.

The price of bread has risen 17 percent, increasing pressure on struggling households in a country with a per-capita income of just 794 dollars (620 euros) a year.

China orders action to cool food prices

September 3rd, 2010 No comments

BEIJING (AP) — China has ordered local leaders to cool a surge in politically sensitive food prices by raising vegetable production amid rising tensions in poor countries over surging food costs.

Mayors were told to make sure local markets have a week’s supply of vegetables, said a Cabinet announcement on Friday. It said state banks were told to lend to producers to increase output amid shortages blamed on summer flooding and drought in some areas.

“Making sure of vegetable supplies and price stability is an important task for now and in the future,” the Cabinet statement said. “Local governments should manage inflation expectations well and realize the importance and urgency of this.”

China’s food price inflation spiked to 6.8 percent in July over a year earlier, pushing overall inflation to 3.3 percent, its highest level this year, according to government figures.

Elsewhere, a jump in food prices triggered deadly riots in Mozambique this week and the poor in Asia, the Middle East and Africa are under strain after global prices jumped 6 percent in the past two months alone.

No unrest has been reported in China but food prices are politically sensitive in an economy where the poor majority spend up to half their incomes to eat.

Beijing has repeatedly emphasized the importance of ensuring adequate food supplies this year and has threatened to punish merchants who profiteer.

China also suffered a spike in food costs earlier when vegetable prices jumped 14.9 percent in April and fruit prices soared 16.4 percent.

Beijing has repeatedly said it is confident of meeting its 3 percent inflation target for 2010. But private sector analysts expect overall August inflation to rise above 3.5 percent, driven partly by food costs.

From Maputo to Mogadishu, rising food prices hit poorest again

September 2nd, 2010 No comments

01 Sep 2010


Anxieties over the rising cost of food are bothering consumers in rich and poor countries alike, and stoking fears of social unrest in impoverished, unstable parts of the world once again.

On Wednesday, at least six people – including two children – were killed during violent demonstrations over soaring prices for basic necessities, including bread and fuel, in and around the capital of Mozambique, one of Africa’s poorest countries, sources told Reuters. The government has just increased bread prices by 30 percent.

“I can hardly feed myself. I will join the protest because I’m outraged by this high cost of living,” said Nelfa Temoteo, who lives in Maputo’s crowded Malhazine suburb.

The violence echoes the food price crisis of 2007-2008, which helped push the number of hungry people in the world above a billion, and sparked protests and riots in nearly 40 countries, including Mozambique, Egypt, Haiti and Lebanon.

In Britain too, shoppers will have noticed their supermarket bills going up again. The overall price of food and non-alcoholic drinks rose by 1 percent from June to July, the biggest single monthly rise ever recorded in government figures, the Daily Telegraph newspaper reported. And in Pakistan, where the worst floods in decades have damaged 3.6 million hectares of maize, rice, cotton and sugar cane, the U.N. Food and Agriculture Organisation (FAO) is warning the next wheat harvest is at risk as the disaster has destroyed more than 0.5 million tonnes of seed stocks ahead of the planting season, which starts this month.

“Food aid alone will not be enough. If the next wheat crop is not salvaged, the food security of millions will be at risk,” said Daniele Donati, FAO’s regional emergency operations chief.

In late August, Pakistan’s Dawn newspaper criticised the government-subsidised Utility Stores Corporation for hiking the price of certain foodstuffs like oil, ghee, pulses and gram flour by more than 20 percent, wiping out discounts it had earlier announced for the holy, fasting month of Ramadan.

The paper said the price of wheat flour is also creeping up in Asia’s third-largest wheat producer, and the higher cost of food is likely to hit the poorest hard.

“We must ask if this is just the beginning of a series of nasty shocks for the low-income consumer. Though far from perfect, the utility stores are a lifeline for those with limited means,” Dawn said in an editorial, urging the government to keep essential items at affordable levels in the shop chain, which is meant to sell staples at below-market prices.

People in crisis are also suffering in the Somali capital of Mogadishu, where food prices have reportedly shot up since Ramadan began, as Islamist rebels renewed their military campaign against the fragile government. One butcher told Associated Press he’s selling a kilo of meat for $3, up from $2 before Ramadan, and a sugar importer said supplies are dwindling in markets because traders have left or stopped importing food because of the fighting.

WHEAT THE MAIN CULPRIT

Ramadan may be a contributing factor in Muslim countries, as people stock up for holidays and special occasions. But across the world, food prices jumped sharply last month, which is likely to exacerbate local causes like floods, conflict and religious customs.

Surging wheat prices – mainly due to Russian restrictions on sales following a major drought there – drove international food prices up five percent in August, the biggest month-on-month increase since November 2009, the FAO said on Wednesday. The FAO’s Food Price Index – a basket of meat, dairy, cereals, oils, fats and sugar – has reached its highest level since September 2008, but is still 38 percent below its peak in June 2008.

The U.N. food body says the forecast for world cereal production this year has been lowered by 41 million tonnes to 2,238 million tonnes since June, but that would still be the third highest annual amount on record and above the five-year average.

Expected global rice production for 2010 has also been revised downward – mainly due to Pakistan’s floods – and now stands at 467 million tonnes, 5 million tonnes lower than June’s forecast but still 3 percent more than in 2009 and a historical record.

The FAO says the disturbances in cereal and rice markets will be tackled at a special inter-governmental group gathering it’s holding on Sept. 24.

No doubt both international and national policy makers will be keen to avoid a repeat of the crisis two years ago, and work done by researchers who analysed their responses back then should help prevent the same mistakes being made again.

Julia Compton of the Overseas Development Institute described in a blog earlier this year how bad government action can make the situation worse, citing the example of one Asian country that stoked fears of a national rice shortage, sending better-off consumers scurrying out to the shops to buy as much as they could, leaving the shelves empty.

And even though cash payments were recommended by international agencies as one of the best ways to help poor people afford expensive food, many countries found they couldn’t set up national welfare systems just like that, she wrote.

WHEN TO ACT?

Prices may not yet be spiralling as severely as in 2008, but how bad should things get before those in power start taking action?

In Pakistan, politicians know they can’t afford to upset a population mired in crisis any further, with an official indicating to Reuters last week the government would likely scrap plans to export 2 million tonnes of wheat.

Given it’s a staple food, any shortages or steep price hikes would further inflame public anger towards the government, which has faced mounting criticism over its handling of the catastrophe.

Pakistan banned wheat exports in 2007 because of shortages and high domestic prices – but some experts say such restrictions are a short-sighted response because they tighten supplies on world markets, pushing international prices even higher.

Wheat futures – financial contracts for supplies to be delivered at a later date – hit two-year highs earlier in August after Russia slapped on an export ban.

It’s too early to tell exactly what trouble today’s international price developments spell for the world’s poorest a little further down the line, but the alarm bells have started ringing.

The Financial Times reported on Monday that Egypt has seen small, localised public protests against high food price inflation.

Ministers have reassured voters there won’t be a rise in the price of the country’s subsidised loaves – sold for less than 1 US cent each – fearing social upheaval. So rather than hitting poor people’s pockets for now, the budget deficit is set to swell as the government absorbs the growing cost of wheat imports for its citizens’ daily bread.

While countries will respond differently, depending on their existing food policies and poverty levels, no one can say they haven’t been warned this time.

Farmers’ bandh hits western UP

August 27th, 2010 No comments

The bandh call by Kisan Sangharsh Samiti (KSS) in the state on Wednesday, received response mainly in districts of Western Uttar Pradesh like Aligarh, Mathura, Agra, Ghaziabad and Gautam Buddha Nagar.

Manvir Singh Teotia, who is heading the KSS, has rushed to New Delhi to meet the Prime Minister. The AICC General Secretary Rahul Gandhi may be present at the meeting, said sources.

In Etmadpur area of Agra, farmers clashed with the police, pelted stones and set afire a few vehicles. The police fired rubber bullets and lobbed teargas shells to disperse the mob. In some districts, the farmers also blocked road and rail traffic.

Both Congress and the BJP had extended support to the bandh. The KSS is spearheading the farmers’ agitation, demanding higher compensation for their land acquired for the Yamuna Expressway project.

While BJP state president Surya Prasad Shahi, along with party supporters were arrested near the party office in Lucknow, the All India Congress Committee’s General secretary Digvijay Singh, who is also in-charge of UP Congress and the UPCC president Rita Bahuguna Joshi participated in the farmers’ demonstration held in Dadri.

In Agra, farmers blocked the road near Chhaleshar-Kuberpur village on NH-2. By the time the police reached the spot, they had set afire a state roadways bus. “They also tried to set afire a ‘dumper’ vehicle, but the driver managed to escape,” said DIG Dipesh Juneja from Agra.

The farmers, he said brickbatted the police party.

“There was a railway track close to the blockade site and stones were available,” he said. The police chased them and got the blockade cleared. Denying that rubber bullets were used, Juneja said: “We used teargas shells.”
Farmers blocked the road at different points on Aligarh-Palwal road, besides in different areas of Khair Tehsil. Although Aligarh remains epicenter of the farmers’ agitation following the August 14 clash, Wednesday’s protest passed off peacefully. “The farmers also blocked the road near Tappal, where they continue their dharna programme under the banner KSS. Later in the evening, the traffic movement was restored near Tappal,” said a source in Aligarh.

The other points where farmers blocked the road included Sofa Nahar and Jattari villages. In Aligarh town, Congress supporters stopped the Lichchavi Express for a few minutes.

Supporters of Bhartiya Janata Yuwa Morcha, the youth wing of BJP, stopped a passenger train at Mathura Railway Junction. Later, they handed over a memorandum to the authorities in support of the farmers’ demand. The BJP workers also tried to enforce the bandh at the Mathura market. The Congress workers, led by legislator Pradeep Mathur, also made an attempt to block Mathura-Delhi Highway. The administration, however, stopped him from doing so.

Big farmers’ protest underscores India’s land woes

August 26th, 2010 No comments

NEW DELHI Aug 26 (Reuters) – Thousands of farmers marched to India’s parliament on Thursday to protest against a government takeover of land to build a new highway, underlining a wider problem of land acquisition in the rapidly-growing Asian giant.

The protest follows the death of three farmers in northern Uttar Pradesh state this month, when police fired at protesters demanding more compensation for land taken to build a $2 billion highway connecting the Taj Mahal city of Agra with New Delhi.

Underlining the political sensitivity of land issues, Rahul Gandhi, son of ruling Congress party chief Sonia Gandhi and a potential prime minister, called on Prime Minister Manmohan Singh on Wednesday to find a solution to widespread land disputes.

In New Delhi, about 15,000 flag-waving, slogan-shouting farmers squatted at a square near parliament after being stopped by police in riot gear. They were addressed by some opposition leaders. Traffic in central Delhi remained gridlocked for hours.

“Why is the government putting pressure on us to vacate our land? Land is our mother, We will die but not give our land,” said Vinod, a protesting farmer who gave only one name.

These protests are the latest in a string of violence over government efforts to acquire farmland for industry in India, where two-thirds of the 1.2 billion population is dependent on agriculture and where land is a farmer’s only social security.

The series of clashes mirror problems in rival China, where rapid urbanisation has often pitted local government against villagers who demand more control of their land.

STALLED MEGA-PROJECTS

Such protests have stalled plans for power utilities, mines, roads and steel mills in Asia’s third-largest economy where poor infrastructure is a long-standing obstacle to growth and have delayed crucial foreign investment in these sectors.

Farmers’ protests have put on hold 230 tax-free export zones and multi-billion investments by top steelmakers such as ArcelorMittal, South Korea’s POSCO and Tata Steel, according to government figures.

Protests over mining on tribal land in the eastern state of Orissa led this week to the government scrapping plans of UK-based Vedanta Resources Plc to extract bauxite.

But in a sign of how the government could also use land disputes for political gain, Rahul Gandhi held a rally on the tribal land on Thursday to help bolster Congress party support.

Land acquisition in India is carried out by government on the basis of a colonial era 1894 law that gives the state the right to take over land for public purposes with little compensation.

The government wants to amend that law to guarantee market prices for seized land, a potentially vote-winning move for the Congress party which counts rural poor among its key supporters.

It makes provisions for social impact assessment studies prior to large-scale acquisition and costs related to resettlement of displaced residents. Developers would also have to offer shares or debentures in projects as compensation to land owners, among other provisions.

But the new draft law, framed in 2007, has remained on hold because of opposition from some government allies who object to certain provisions in the bill such as blocking land and compensation related litigation from going to civil courts.

The row over land has major political and security implications in India.

The left-of-centre Congress hopes to keep a lid on farmer resentment by minimising the impact of land acquisition. It also wants to undermine the appeal of a growing Maoist insurgency that feeds partly off a wider resentment against industry at the cost of farming and the poor.

“The prime minister has assured us that the land bill will come in the next session of parliament,” Digvijay Singh, a Congress leader who accompanied Gandhi said. (Editing by Alistair Scrutton and Alex Richardson)

Peru: Coca leaf producers’ strike reaches 8th day with road blockades

August 25th, 2010 No comments


Peru: Coca leaf producers’ strike reaches 8th day with road blockades The strike started by Ucayali coca leaf producers has reached its eight day today, and the farmers on strike have blocked the Federico Basadre road, where hundreds of vehicles are currently stranded.

These coca leaf producers are demanding the end of the “compulsory eradication” of their crops and the end of the control programs in the Alto Huallaga Valley, called the Corah Program.

General Marlon Savitzky, Police Chief in the Huallaga, told RPP radio that the blockade goes from the sector known as Cumbre de la Victoria (Km. 12) to San Alejandro (Km. 110).

He clarified that there is no food shortage, but that the transit is completely halted, even for small vehicles like motorcycles.

Grain price rise may fuel Mideast, Europe unrest

August 12th, 2010 No comments

Aug 11, 2010

LONDON: Rising grain prices from Russia’s drought and fires will pressure populations already hit by the financial crisis and could stoke unrest — particularly in the Middle East, North Africa and parts of Europe.

Wheat prices have risen by nearly 70 percent since June after Russia suffered its worst drought in 130 years and are at their highest since 2008, when the last major food price rally sparked protests and riots in a string of emerging nations.

Analysts warn that if prices stay high then the threat of street violence will increase — at least up to a point.

“We could see some street riots but I wouldn’t expect any governments to fall,” said Jonathan Wood, global issues analyst for consultancy Control Risks.

“On one level, we have much less of a problem than in 2008 because we have better food stocks. On the other hand, because of the financial crisis many countries are not in such a good position financially to deal with it.”

Particularly in emerging markets where food makes up a higher proportion of household purchases, the price rise could filter through in inflation, rate hikes and wider deficits.

The Middle East and North Africa, particularly Egypt, are regarded as particularly vulnerable, as are emerging and southern European countries where discontent has already been fueled by harsh cuts in public spending, benefits and pay .

“Grain imports are particularly sensitive in the Middle East and North Africa — bread is such a crucial staple of the diet,” said Metsa Rahimi, analyst at security consultant Janusian. “Eastern Europe is also an obvious area of risk.”

Europe has seen less social unrest than many expected from the financial crisis — although riots in Greece in May unsettled global markets — but risks are expected to rise in the autumn as unions call strikes and spending cuts bite.

Central and Eastern Europe have pushed through tough measures to qualify for IMF and European Union aid, but analysts see patience running thin, particularly in Romania. Spain, Italy, France and the Baltic states are also being closely watched.


Political weapon?

Much will depend on how long the price increase lasts and to what extent it filters through other commodities and foodstuffs.

That could swiftly bring angry mobs on the streets particularly in relatively poor authoritarian countries where maintaining food supply is seen as key to government legitimacy, they analysts said.

Russian Prime Minister Vladimir Putin was swift to impose an export ban, with the Kremlin likely to be keen to keep its silos full especially in the event of more damage to its winter crop.

“Adequate grain supplies have long been associated with social stability in Russia,” wrote security consultancy Stratfor. ”

Stratfor believes Russia may use the crisis to pull together nearby producers Belarus, Kazakhstan and Ukraine to form a regional grain cartel.

“Moscow very publicly has used energy supplies as a political weapon, either by raising prices or cutting supplies,” it said in a note. “Grain exports fall very easily into Moscow’s box of economic tools.”

Several key importers of Russian wheat including Saudi Arabia, Turkey and Jordan have been swift to say they have enough stocks and there will be no immediate impact on ordinary people. But they are nervous.

“The risks are always greatest where there are large numbers of urban poor and where food makes up more than 60 percent of the consumer purchase index basket,” said Alastair Newton, political analyst at Nomura.

“My top pick for potential trouble would be Egypt where tensions are already high with elections coming up and concerns about succession. Egypt has a long history of food price riots — but my guess is the main impact will be on the deficit as the cost of subsidies go up.”

Food prices and subsidies have always been notoriously political in Egypt, which faces elections next year with little clarity on whether 82-year-old President Hosni Mubarak — in power for almost three decades — will stand again.


Political risk premiums

There have been occasional scuffles at Ramadan food handouts in recent weeks and grumbling over raised pre-Ramadan prices but no repeat of the widespread protests seen in 2008.

The government met those first with a security clampdown then with the promise of higher wages.

Other countries being particularly closely watched for signs of unrest include Algeria, drought-hit Syria and already unstable Yemen.

In contrast, there is seen less immediate impact on Africa, in part because of stronger other staple crops particularly maize in the continent’s south. Nigerian food price rises have also slowed because of good local crops.

Even in West Africa’s Sahel — scene of a pre-existing food crisis — aid agencies say the Russian grain crisis and global price surge has had little local impact as yet.

But rising global prices could still put pressure on some recent land deals for food production in which Middle Eastern and Asian nations have bought up tracts of land in Africa and elsewhere including Ukraine and Pakistan for food. Hungry local populations might not like seeing food being trucked abroad.

The only major change of government linked to the last food spike was the 2009 coup in Madagascar, in which popular desire to overturn a South Korean land purchase was seen as a key factor.

Insurer Zurich believes food-related unrest worries will prompt more investors to seek protection against political violence damage and expropriation. That could push up premiums and the cost of foreign direct investment in affected markets.

“We would expect to see increased demand for our political risk products as a result of this,” said Dan Riordan, Zurich president for specialty products.

Clash Over Coca Eradication Leaves 1 Dead in Peru

August 8th, 2010 No comments

LIMA – One farmer was killed when he and other coca growers tried to stop efforts to eradicate the leaf – which is the raw material of cocaine – in eastern Peru’s Ucayali region, police said Wednesday.

The confrontation took place Tuesday between some 300 coca growers and 200 police accompanying an eradication team in the Rio Negro district.

Police told Efe that one grower was killed, while sources who spoke on condition of anonymity said two other farmers were wounded.

Two police and two eradicators were killed three months ago in the nearby Upper Huallaga Valley in attacks authorities blamed on guerrillas working for drug traffickers.

Coca growers continue to block the main highway into the eastern jungle, police said.

The eradication teams arrived Sunday in Rio Negro, an area of extensive coca cultivation, and soon discovered and destroyed three soaking pits used for the process of transforming the leaf into cocaine.

Coca growers responded by inciting the local population to attack the eradicators, authorities said, claiming that some of the growers were armed with AK-47 assault rifles.

The U.N. Office on Drugs and Crime said in June that Peru has surpassed Colombia as the world’s leading source of coca, producing 119,000 metric tons of the leaf in 2009.

Peruvian officials rejected the U.N. finding, which they attributed to faulty measuring methods.

Peru and neighboring Bolivia permit cultivation of coca in limited quantities for legal uses in folk remedies and Andean religious rites.

Coca, in its unadulterated form, is a caffeine-like stimulant that Andean Indians chew to counteract hunger pangs and the effects of high altitude. EFE

Korean organic farmers protest against eviction

August 8th, 2010 No comments

August 8, 2010

Korean organic farmers have held a “Mass for life and peace” to urge the government not to evict them from their lands to make way for a controversial river project.

The farmers’ lands are to be compulsorily purchased to make way for the Four Rivers Project. Authorities have already deposited the purchase price for the lands in a local court as the final step in the process.

The government must heed the cry of the farmers as a voice from heaven, said Father Joseph Cho Hae-bung, president of the Catholic Solidarity for Deterrence of the Four Rivers Project, at the Aug. 5 Mass.

Following the Mass, the farmers staged a protest rally in front of the Seoul Regional Construction Management Administration.

In a statement released there, the farmers “strongly urged” the government to seek an alternative solution through dialogue rather than through imposed administrative measures.

They also revealed that the government is threatening that evictions could begin within a month.

The farmers warned that the Four Rivers Project “would cause unimaginable damage.”

Authorities claim it is needed to prevent flooding and pollution, but its many opponents – ranging from Churches to local environmentalists – say it will have the opposite effect.

After the country’s ruling party was defeated at the recent June 2 nationwide local elections, the Catholic Church has called for an immediate halt to the project.

Food crisis clippings

August 6th, 2010 No comments

Analysis – Food squeeze next worry for emerging markets
Aug 5, 2010

LONDON (Reuters) – A food price crisis may be the next stumbling block for emerging economies, even as their bonds and stock markets rally in relief at an easing of the euro zone’s debt crisis.

Wheat prices have jumped by more than 50 percent since June and are likely to rise further due to expectations of tighter supplies, triggering concerns about a repeat of the food crisis in 2007/08 that forced interest rates higher in many economies and led to emergency controls in others.

The UN’s Food and Agriculture Organisation (FAO) cut its 2010 global wheat forecast by about 4 percent this week and said world wheat supplies may shrink next year if severe drought continues in Russia, Europe’s leading wheat producer.

Russia imposed a temporary export ban on Thursday in response to a record-breaking heatwave and the extent of the damage to crops and its economy is only beginning to become clear.

Spiralling wheat prices could translate into higher inflation and possibly higher interest rates in emerging market economies, which tend to hold a large proportion of their consumer price baskets in food.

The FAO said healthy world stock levels should prevent a repeat of the crisis of 2007/08 but past squeezes on food have led some central banks to hike aggressively in a bid to head off a second round of price rises in their economies.

Analysts and investors are already preparing for tighter monetary policy in emerging economies, even as they look to the possibility of further quantitative easing in the United States.

“It is a big deal for emerging markets, though maybe not as big a deal as it was in 2006/7/8, as food prices make up 20-50 percent of emerging CPI baskets,” said Charles Robertson, EEMEA chief economist at ING.

“Food prices never move in the U.S. as a result of changes in global harvests, because so much of the price of food is taken up by packaging, suppliers. In the EU, food prices move a little bit but in emerging markets, food price rises can add a few percentage points to the inflation rate.”

RUSSIAN RATES

Countries likely to be particularly at risk from high wheat prices include Nigeria, which has 25 percent of its CPI basket in bread and cereals, Robertson said.

Western economies typically have less than 20 percent of their CPI basket in food, compared with 30 percent on average in emerging markets, according to U.S. bank Morgan Stanley.

In Russia, higher wheat prices are contributing to speculation that the central bank will raise interest rates as early this year, after cutting 14 times since April 2009 to a record low refinancing rate of 7.75 percent.

Annual inflation in Russia is 5.5 percent.

“We see more upside risks…even a 15 percent inflation rate next summer does not seem unthinkable,” said analysts at Danske in a client note.

Some central banks have already responded.

In India, a year-long spell of double-digit inflation, largely on rising food prices, sparked massive street protests.

One of a small but growing number of economies to have started raising interest rates, India has lifted its main lending rate four times by a total of 100 basis points since March, to 5.75 percent. Analysts say there is more to come.

However, an end to the El Nino weather pattern which led to the food price spike in India may actually reduce food price inflation in India, analysts say.

CURRENCY BOOST

Higher inflation and higher interest rates tend to depress bond prices and can also affect corporate lending, eroding stock market gains.

Investors have flocked into emerging market debt this year, keeping spreads below the key 300 basis point level over U.S. Treasuries, in their search for higher yield without exposure to even riskier emerging equities. Any whiff of inflation is likely to turn those debt investors more cautious.

But currencies find an upside in higher rates, due to the relative appeal of holding deposits in higher-yielding markets.

The Ukrainian hryvnia, which has already shown some appreciation in recent months due to an improving economy, is singled out by analysts as likely to rise further.

The rouble may also be allowed to rise if Russia has to import grain, although Russian prime minister Vladimir Putin on Thursday imposed a temporary grain export ban.

“Countries that import food could be more open to allowing their currencies to appreciate in order to cope with higher food prices,” said Elisabeth Gruie, emerging market strategist at BNP Paribas. “Eastern European countries such as Poland will be sensitive to the impact on higher food prices on inflation and could react by adjusting monetary policy.”

Fuel and food prices took inflation to multi-year highs in central Europe in 2008, prompting rate rises, and there were also protests against rising food prices in many emerging market countries.

To grapple spiking food price inflation, several emerging food exporters, including Russia, Ukraine and Kazakhstan, introduced export duties in early 2008. Russia had already imposed price controls on basic foodstuffs in Oct 2007.

Wheat prices can also lead to higher prices of other food, as consumers switch to buying more rice, for example, putting upward pressure on currencies in the Middle East and Asia.

“Places like Egypt, India, Indonesia and the Philippines are pretty big importers of food,” said Philip Poole, head of macro and investment strategy at HSBC Global Asset Management.

“Consumers are moving up the food chain in emerging markets, literally, that’s putting the pressure on.”

Russia Will Tighten Security Over State’s Grain Stockpiles During Drought
By Maria Kolesnikova -

Russia is boosting security over the state’s 9.5 million metric tons of grain stockpiles as the worst drought in at least half a century erodes yields, said the government agent overseeing the reserves.

“United Grain Co. has introduced additional security measures for grain in the state intervention fund,” the agent said in an e-mailed statement today. “The role of state stockpiles in the domestic market is increasing as the situation in the Russian grain market becomes more acute because of wildfires and drought in more than 25 regions.”

Russia yesterday set a ban on grain and flour exports from Aug. 15 to Dec. 31 and published the order in the state’s newspaper of record today. Russia forecasts this year’s grain crop at between 70 million and 75 million tons, while domestic consumption stands at 75 million tons. The country has 21.5 million tons in reserves, including the state’s stockpiles.

Tempers Flare as Aceh Villagers’ Arun Gas Plant Blockade Enters Third Week

July 14th, 2010 No comments

July 14
Banda Aceh. A blockade of the giant Arun liquefied natural gas plant in northern Aceh by more than 500 villagers demanding the company honor 36-year-old promises entered its third week on Tuesday with no end in sight.

The blockade flared up on Monday when protesters scuffled with the police while trying to stop plant workers leaving by the main gate.

The protesters are from four villages in Lhokseumawe, North Aceh, whose land was taken over by Arun LNG in 1974.

The four villages are West Lancang, East Lancang, East Rancong and West Rancong.

The protesters have blocked the main entrance to the plant.

Ahmad Refki, the coordinator of the protesters gathered under the Evicted People’s Alliance, said his group would continue the peaceful protest until their demands were met by the government and state oil and gas company Pertamina.

“The residents demand resettlement and an agriculture area to make a living, as promised by the government when Arun was established in 1974,” Ahmad said in a phone interview.

He said the government and Pertamina had promised all residents affected by the oil and gas mega project that they would be resettled and given land to farm.

The promise was contained in a letter from then Aceh Governor Muzakkir Walad.

Residents of other villages surrounding the plant have already been relocated, but not those from the four villages.

“The 452 heads of families from these four villages have only been compensated for their land,” Ahmad said.

Some of these people have since left, while other have stayed and have had to rent houses.

The protesters have put up a tent at the plant entrance.

The blockade has not affected the company’s operations, but workers have been forced to look for other ways to get in and out of the plant.

“The demonstration is peaceful,” Ahmad said. “We will continue this blockade until our demands are fulfilled by the government and there is a written agreement that residents can hold on to.”

He added that the armed conflict in Aceh between the military and the separatist Free Aceh Movement, and the resulting security presence in the area, had prevented residents from claiming their rights earlier.

He denied claims made by a witness that the cars of several Arun staff had been vandalized during Monday’s scuffles, saying the cars had been only slightly scratched or dinged.

The witness, who declined to be named, said police had fired warning shots into the air to disband the protesters but there were no serious injuries.

Ahmad said that to avoid further clashes, the protesters had stayed inside their tent on Tuesday because the police were on guard around the site.

The Arun gas field is one of the country’s largest and for decades has been considered a vital project requiring tight security.

The plant was a target of guerilla attacks during the three decades of separatist conflict, and the military has always had a strong presence in the area.

In Face of House Demolition, Old Woman Chooses Self-Immolation

June 18th, 2010 No comments

Jun 18, 2010


Residents of the demolished houses in Yangjiang City, Guangdong Province, were injured by the police during the protest and thrown into the street.
In order to stop authorities from demolishing her house and taking her land for the purpose of ‘economic development’, Li Wei set herself on fire. The 60-year-old woman is currently hospitalized and in critical condition with third degree burns over 37 percent of her body.

June 13 was the day the authorities were going to expropriate her land to build a factory for the Jingyue Economic Development Area in northwestern China’s Changchun City. Li Wei and her husband Li Xiuchen were having breakfast when the local government sent a dozen cars and over 50 people to her house, telling the couple that they were taking their house down, according to Wenhuabao (China Culture Daily).

When they tried to force Li Wei out of her home she dowsed herself with gasoline and set herself on fire. The intruders then rushed out of the house.

A doctor at the hospital said Li could die considering that she also suffers from a heart problem and diabetes.

The Epoch Times called the Office of Letters and Calls of the Jingyue Economic Development Area for comment. The man on duty said that the incident was being handled “according to procedures.”

The couple had been offered 13,000 yuan (US$1,900) for their house, but turned down the offer.

According to Wenhuabao, Li did not regret what she did. “I was not given any choice. I had to fight for my house with my life,” Li said.

In the past few years, many such tragic incidents have taken place. The combination of land grabs by rapacious officials under the guise of public development, and the lack of established means for expressing dissent in China’s still closed political environment, are behind the incidents of desperation.

In November 2009, Tang Fuzhen, a businesswoman in Chengdu City, Sichuan Province, set herself on fire on the roof of her house, in front of police. She died as a result.

On Dec 14, 2009, Xi Xinzhu from Beijing set himself on fire to protest forced demolition.

On Jan 26, 2010, Zeng Huanwei, resident of Yancheng City, Jiangsu Province, lit himself on fire to protest a road broadening project that his house was a victim of.

On March 3, 2010, 70-year-old Wang Cuiyun from Wuhan City, Hubei Province attempted to stop a demolition in progress. An earth scraper threw her into a ditch, and she died as a result.

On March 10, 2010, Han Huabin from Huayin City, Jiangsu Province, poured gasoline on himself in front of government officials who came to demolish his house. As the demolition proceeded he set himself on fire and incurred serious injuries.

On March 27, 2010, a father and son from Lianyungang City burned themselves in an attempt to stop town officials from taking down their pig farm. The 68-year-old son, Tao Huixi, died and the 92-year-old Tao Xingyao was injured.

On April 29, 2010, four hundred desperate Chinese farmers from Changchunling Village in Heilongjiang Province resorted to lying on railroad tracks to protest government land grabs. Armed police dispersed them with tear gas. A dozen farmers suffered injuries, with two badly hurt.

On May 10, 2010, 91-year-old Liu Xian from Yongchun County, Fujian Province, drank pesticide and killed himself because he feared that he would have no place to stay after his house was torn down.

Forced relocation for the purpose of infrastructure or luxury developments are common in China and have become a source of festering unrest, especially because of the inadequate compensation generally given to the landowners.

To prepare for the World Expo, Shanghai officials displaced 18,000 families and 270 factories. Many residents who lived near the Huangpu River were forced to relocate and given minimal compensation. Countless have become homeless while some have been detained, beaten, and even killed.

The Department of Sociology at Tsinghua University in Beijing recently published a report that outlines the urgency of “maintenance of social stability” (often code for maintenance of regime stability) in the face of social conflicts, social unrest, and mass uprisings throughout the country.

The report says, “Without an effective outlet for people to express their interests, unresolved conflicts will accumulate in an increasingly unstable society.

The growing social disputes stemming from violations of human rights and property rights, predominantly related to forced evictions, subsequent demolitions, and unpaid wages, are described as the leading causes of instability in China today.”

Tribes struggle to survive in Borneo

June 16th, 2010 No comments

The Penan tribe of Borneo are facing a fight for survival. Logging, dam construction and deforestation is threatening the forest on which they depend.

Although only around 300 of the tribe of hunter-gatherers remain nomadic, even those who have settled remain dependent on the forest. Since the 1970s, the Malaysian government has been exploiting the forest of the Sarawak region, logging being a particularly devastating example.

The tribe have been trying to prevent logging on their territory since the mid to late 80s. They’ve been blockading roads to stop loggers from entering their land, with some success, but many communities have seen their forests devastated – forests they rely on for food, medicine and the materials they use to build their homes.

The first community I visited lived in an area where they had managed to keep the loggers out, though officially a company had rights to their land. I had to travel there via the logging roads and was shocked to see truck after truck carrying the timber out. I left the road, transferred to a small boat and took it up river, pushing it over the rapids until, eventually, I arrived at the settlement. It was beautiful there.

The Penan were very welcoming. They were gentle and softly spoken, and cooked me meals of wild boar that they had hunted. There was a lot of food – they pointed out an abundance of fresh boar tracks. Wild boar is what the Penan most like to eat, as well as deer and fresh fish from the river. They catch smaller animals with blow pipes: long carved-out pieces of wood through which they blow poison darts.

Another community I met had made their home at the bottom of a valley where there was old forest. While I was there, we heard bulldozers at the top of the ridge on one side of the valley. A logging company was trying to come over into their territory. The tribe told me they had gone up to the ridge to ask the loggers not to come over but were told to stop harassing the workers. The loggers said that the government had given them permission to be there and the indigenous people would be killed if they didn’t stop protesting.

People would ask for my help in every community that I visited. The tribe are very aware of the odds stacked against them – big powerful companies like Samling, who harvest the timber, and Shin Yang, who harvest palm oil, are on their land with the backing of the Sarawak government. It has also been reported that some of members of the state government are involved with the logging and palm oil companies.

In many of these cases there’s a failure among those in power to appreciate the Penan’s way of life as valid. Most of the indigenous people of Sarawak are ‘shifting cultivators’ tribal, government, who practise agriculture. This is at odds with the Penan’s nomadic hunter-gathering tradition.

I went on to visit a community whose land had been heavily logged. The contrast between them and the Penan I had been with previously was shocking. People here had very little to eat. They told me they went for months without finding a single wild boar and were a little thin. But they were determined to cling to their way of life, despite the odds. The fight for survival has come upon the Penan quickly – 15 years ago life had been relatively straightforward for them.

Some of the tribe have moved into towns, but they’re in a minority. The Penan prefer to hang on to the small patches of forest that remain. They can eke out a living in cleared areas where oil palms are yet to be planted. When companies leave these areas the forest begins to regenerate slightly, although it never totally recovers. When the palm oil companies return to plant their crops the land becomes useless to the Penan. Driving through areas of Sarawak, you can see the rows of neat little trees, stretching over miles of indigenous land.

Sadly, some of the Penan end up working for the companies who moved them off their tribal land. They have no choice: they can no longer find food in the forest so have to earn money to buy it, although the companies do not pay them well.

As well as deforestation, the Penan’s land is threatened by plans to build a series of hydroelectric dams in Sarawak. The first dam is already under construction, and the communities who live on that land have been ordered to leave. But the state of Sarawak already has the capacity to produce more electricity than it needs. The surplus electricity will be sold and exported to other parts of Malaysia.

I went to several of the communities who were being told to make way for these dams. They were worried about what to do and didn’t want to move. They would be given only a small area of land, per family, to farm in government resettlement areas. They would have to grow food in these plots, which is a far cry lifestyle they are used to. They should have the right to choose if they want to grow crops or be hunters, or a mixture of the two, which is what many of them now do.

In many other countries indigenous land rights are at least recognised on paper, but the Malaysian and Sarawak governments do not recognise the Penan’s rights. But the Penan are not giving up. They government are out of step. I think if there is enough international pressure on the Malaysian government, hopefully the Penan can see their rights recognised and their land protected.

Will the Cabinet send in the Army to tackle Naxals?

June 10th, 2010 No comments

June 10
A crucial meeting of the Cabinet Committee on Security, chaired by the Prime Minister, will decide on an updated anti-Naxal policy today. It is expected to deliberate upon whether the Army should be brought in.

While this will be a political call, the Army has reservations and is wary of getting embroiled in Naxal areas. But it is willing to help through training and in advisory roles.

Sources say the Army has offered to advice and train personnel of state and Central Police Organisations in larger numbers. It has suggested that young Assistant Commandants of Central Police Organisations can be attached to counter-insurgency battalions for six-month stints to raise a Greyhound-type specialized force in each state.

It has also suggested that Brigadier-level officers can be assigned as advisers in Naxal-affected states of the Unified Command  – Chhattisgarh, Orissa, Jharkhand, West Bengal and Maharashtra are the states where such postings can be done, the sources say.

It has offered to deploy more helicopters and Unmanned Aerial Vehicles (UAVs).

Sources say the Army is reluctant to get involved because it is already overstretched. If it has to deploy in Naxal areas, it would be at the cost of lowering guard on the Pakistan and China borders.

Already, the ratio of field-to-peace tenures of combat battalions has been upset because of heavy counter-insurgency operations. And although the situation in Jammu and Kashmir has improved substantially, it is still not conducive to thinning out the Army from there, the sources say.

Also, it is not possible for the Army to operate without the Armed Forces (Special Powers) Act, 1958. All the state governments would have to agree to impose the Act.

This year has seen some of the most lethal Maoist attacks ever, and the Central Government, on the back foot each time, has promised an effective anti-Naxal plan. The Opposition has slammed it for what it calls an “irresponsible policy in dealing with Naxalism.” Bringing in the Armed Forces to tackle the menace is a demand that has been repeatedly made.

Amish Farming Draws Government Scrutiny

June 9th, 2010 No comments

LANCASTER, Pa. — With simplicity as their credo, Amish farmers consume so little that some might consider them model environmental citizens.

“We are supposed to be stewards of the land,” said Matthew Stoltzfus, a 34-year-old dairy farmer and father of seven whose family, like many other Amish, shuns cars in favor of horse and buggy and lives without electricity. “It is our Christian duty.”

But farmers like Mr. Stoltzfus are facing growing scrutiny for agricultural practices that the federal government sees as environmentally destructive. Their cows generate heaps of manure that easily washes into streams and flows onward into the Chesapeake Bay.

And the Environmental Protection Agency, charged by President Obama with restoring the bay to health, is determined to crack down. The farmers have a choice: change the way they farm or face stiff penalties.

“There’s much, much work that needs to be done, and I don’t think the full community understands,” said David McGuigan, the E.P.A. official leading an effort by the agency to change farming practices here in Lancaster County.

Runoff from manure and synthetic fertilizers has polluted the Chesapeake Bay for years, reducing oxygen rates, killing fish and creating a dead zone that has persisted since the 1970s despite off-and-on cleanup efforts. But of the dozens of counties that contribute to the deadly runoff of nitrogen and phosphorus, Lancaster ranks at the top. According to E.P.A. data from 2007, the most recent available, the county generates more than 61 million pounds of manure a year. That is 20 million pounds more than the next highest county on the list of bay polluters, and more than six times that of most other counties.

The challenge for the environmental agency is to steer the farmers toward new practices without stirring resentment that might cause a backlash. The so-called plain-sect families — Amish and Old Order Mennonites, descended from persecuted Anabaptists who fled Germany and Switzerland in the 1700s — are notoriously wary of outsiders and of the government in particular.

“They are very resistant to government interference, and they object to government subsidies,” said Donald Kraybill, a professor at Elizabethtown College who studies the Amish. “They feel they should take care of their own.”

But the focus on the plain-sect dairy farmers is unavoidable: they own more than 50 percent of Lancaster County’s 5,000-plus farms.

“It’s been an issue over the last 30 years,” Dr. Kraybill said. “We have too many animals here per square acre — too many cows for too few acres.”

For now, the environmental agency’s strategy is to approach each farmer individually in collaboration with state and local conservation officials and suggest improvements like fences to prevent livestock from drifting toward streams, buffers that reduce runoff and pits to keep manure stored safely.

“These are real people with their own histories and their own needs and their own culture,” said John Hanger, the secretary of environmental protection in Pennsylvania. “It’s about treating people right, and in order to treat people right, you’ve got to be able to start where they are at.”

But if that does not work, the government will have to resort to fines and penalties.

Last September, Mr. McGuigan and his colleagues visited 24 farms in a pocket of Lancaster County known as Watson’s Run to assess their practices. Twenty-three of the farms were plain sect; 17 were found to be managing their manure inadequately. The abundance of manure was also affecting water quality. Six of the 19 wells sampled contained E. coli bacteria, and 16 had nitrate levels exceeding those allowed by the E.P.A.

Persuading plain-sect farmers to install fences and buffers underwritten by federal grants has been challenging because of their tendency to shy from government programs, including subsidies. Members neither pay Social Security nor receive its benefits, for example.

Word of the E.P.A.’s farm visits last September traveled rapidly through Amish country, Mr. Stoltzfus said, even though most plain-sect farmers do not have their own phones.

The farmers whom the agency visited declined to be interviewed. But Mr. Stoltzfus, whose brother-in-law was among them, said that as the news circulated, some farmers decided on their own to make changes in anticipation of intervention by the agency.

“I had never heard of the E.P.A. coming out to do inspections,” he said. “I think these practices are going to be required more.”

With help from the Lancaster County Conservation District, Mr. Stoltzfus applied for a government grant to help finance construction of a heifer barn with a manure pit. He expects the grant to cover about 70 percent of the cost.

But some Amish farmers were angered by the agency’s intrusion and its requirements.

“It’s certainly generated controversy,” said Sam Riehl, a farmer in the area. “We wonder whether we are being told what to do, and whether the E.P.A. will make it so that we can’t even maintain our farms.”

Mr. Riehl said he had vowed never to accept a government grant. He does have a manure management plan and a manure pit, he said, although several of his neighbors do not.

Last year the federal Fish and Wildlife Service awarded $500,000 to the Chesapeake Bay Foundation to work with the farmers on switching to barnyard runoff controls, streamside forest buffers, no-till farming and cover crops. The money has been lucrative for local agricultural companies like Red Barn Consulting, which has used some of it to hold milk-and-doughnut sessions in barns for Amish farmers and drop off fliers door to door.

The firm’s owner, Peter Hughes, and his employees instruct the farmers on manure management and do free walkthroughs to offer suggestions. In the last six months, Mr. Hughes said, his plain-sect clientele has soared from several dozen farmers to about 200.

Working with the plain sect presents challenges, Mr. Hughes said. For one thing, the group is deeply averse to salesmanship. Then there is the technological communication problem: most of the farmers share a phone booth along a road with several neighbors.

“I had one client who would call me at 5:15 every morning,” he said. “That was his allotted time to use the phone, and that was the only way for us to talk.”

Most days Mr. Hughes is on the road in his pickup visiting farmers. As he drives, he said, he is often struck by the dichotomy between a would-be pastoral ideal and the environmental reality.

“You see those cows and the fields, and it’s beautiful,” he said. “But then there’s that big pile of manure sitting back there.”

Mr. Stoltzfus hopes he is ahead of the game. By adopting new practices and building the manure pit, he thinks he can both help the environment and steer clear of E.P.A. interference.

At midday, Mr. Stoltzfus was placing a bowl of cut fruit into a propane-powered cooler in his backyard, one of the family’s few concessions to technology. Hand-washed black pants and plain cotton dresses fluttered on a clothesline behind him. He offered a taciturn reflection on how quickly things had changed — his willingness to accept the grant, for example.

“A while back, Old Order Amish would not participate in programs like this,” he said, “but farming is getting expensive.”

And then he ended the conversation.

“Is that all?” he said politely but coolly. “I have work to do.”

It was milking time.

Niger: French State-Owned Company “Poisoning” Poor

April 12th, 2010 No comments

Paris — Recent research by Greenpeace suggests that French state-owned company Areva’s public claims of decontamination of populated areas near uranium mines in Niger are false. High radio-activity persists in towns and rural areas near the mines, affecting some 80,000 people.

When uranium was discovered in the impoverished West African state in the 1960s, many thought that the radioactive mineral – indispensable as combustible for nuclear power plants and raw material for nuclear bombs – would be the panacea for all the social and economic afflictions haunting the former French colony.

Instead, as several recent reports by environmental organisations and independent researchers show, Niger’s uranium mines constitute a deadly gift for the country, both for its public health and its politics.

Today, Niger is considered the poorest country in the world. It ranks last in the Human Development Index, and it is confronting a political crisis caused by allegations of corruption and environmental conflicts — all linked to the uranium mines (see part two of this article).

According to a report that the global environmental organisation Greenpeace released on Mar 30, high radioactivity can still be detected on the ground near the Nigerien uranium mines, especially in the mining towns of Arlit and Akokan, some 850 km northeast of the capital Niamey.

Some 80,000 people live in these towns and in the nearby region. The mines are operated by the French state-owned company Areva, which describes itself as “rank(ing) first in the global nuclear power industry”. France, which has been exploiting uranium mines in Niger for 45 years, is the main foreign investor in Niger.

In an interview with IPS, Rianne Teule, nuclear energy campaigner for Greenpeace International, explained that the group’s research team visited Niger’s uranium mines last November to investigate whether Areva complies with basic health and labour standards.

“We found dangerous levels of radiation in the streets of Akokan,” Teule told IPS. “We also found high concentration of uranium in four of five samples of drinking water from Arlit, in doses beyond the limits established by the World Health Organisation,” Teule said.

“Areva had earlier claimed that such radiation had been identified and its sources addressed,” Teule said.

In some cases, the radioactivity measured by Greenpeace researchers in Akokan was 500 times higher than the normal levels.

“A person spending less than one hour per day in those places would be exposed to more than the maximum allowable annual radiation dose for the public recommended by the International Commission on Radiological Protection and enforced by legislation in most countries,” Teule said.

Greenpeace’s findings confirm earlier reports by other French environmental groups that have denounced Areva’s lack of responsibility in the operation of the uranium mines in Niger.

In 2007, an inspection by the independent investigative commission on radioactivity CRIIRAD (after its French name) and the Nigerien environmental organisation Aghir In’Man discovered high levels of radiation in the streets of Akokan.

In the immediate neighbourhood of the Akokan hospital, CRIIRAD measured levels of radiation up to 100 times higher than normal background values. CRIIRAD also identified the source of the radiation as the radioactive waste rock from the mines that had been used for road construction.

“We gave our findings to the Areva board of directors and the Nigerien local authorities and called for a comprehensive radiological survey and clean-up of the village,” Bruno Chareyron, an engineer in nuclear physics and director of research at CRIIRAD, told IPS.

CRIIRAD also found radioactive contamination in drinking water and radio-active scrap metal in the mining towns.

The public health consequences of the exploitation of uranium are only one of the many problems raised by the extractive industry in Niger.

Alain Joseph, a French hydro-geologist working in the West African country, told IPS that the “pasture economy is about to disappear in north-eastern Niger because of the dozens of mine projects installed there which over-exploit the scarce water resources of the area”.

In 2009 alone, Niger authorised 139 uranium research projects conducted by companies from Australia, Canada and China.

Joseph said that these projects are draining water from Agadez, the region’s only water source. “The uranium exploitation is not only decimating Niger’s environment and public health. It is also about to destroy the economic foundations of Tuareg, Fula, Kounta and other pastoral, nomadic people in the north of the country,” he said.

india naxal clippings

April 12th, 2010 No comments

Rebels’ resorted to road blockade in Koraput
Bhubaneswar ( Orissa) : Normal life in Orissa’s Koraput district bordering Andhra Pradesh and Malkangiri bordering Chhattisgarh, on Saturday badly hit with outlawed CPI (Maoists) blocked roads at several places in southern region protesting Operation Green Hunt, police said.

The rebels have blocked roads by felling trees resulting zero communication on several major routes, police said.

Road communication between Narayanpatna and Laxmipur town in Koraput district was disrupted in at least one place due to the road block, sources said.
The rebels also pasted posters on trees and other places protesting the anti-Maoist operation in the region, they said.

Timber trader shot dead in Orissa’s Baripada
Bhubaneswar ( Orissa) : After spreading mayhem in Koraput and Malkangiri districts, the outlawed Maoists have shot dead a timber merchant in Orissa’s Mayurbhanj district and issued a stern warning against middlemen (dalals), police said on Monday.

SP Dayal Gangwar said a group of armed rebels barged into the house of 50-year-old Goutam Hapoi, a timber merchant, at Kathasirisi in Suliapada area and took him away.

He said that Hapoi, a resident of West Midnapore district of neighbouring West Bengal was gunned down near his house.

Hapoi ran a saw mill and was involved in a timber business for the last five years.

It is yet to be ascertained whether the victim had earlier received threat from the rebels.

Police said that before escaping from the spot the ultras left behind some posters in Belgani and Oriya which read that ‘dalals’ (middlemen) would be punished in a similar way.

Security personnel have been dispatched to the area.

Maoist attack stiffens India’s resolve

April 7th, 2010 No comments


NEW DELHI – In the deadliest leftist attack in India, Maoist rebels on Tuesday killed 75 police personnel in the central state of Chhattisgarh, in the process making a mockery of New Delhi’s recent claims that its strong-arm tactics against Maoist strongholds across north and eastern India were paying dividends.
A government paramilitary force – mostly from the Central Reserve Protection Force – was involved in flushing-out operations when it was attacked in the thick forests of Dantewada district by about 500 armed rebels.

Interior Minister P Chidambaram, who is spearheading “Operation Green Hunt” against the rebels, said, “Something has gone drastically wrong. They seemed to have walked into a trap set by

the Naxalites [Maoists]. Every soldier on the patrol was either killed or wounded.”

Prime Minister Manmohan Singh called the incident “horrific” while Home Secretary Gopal K Pillai said on Wednesday the rebels “will pay a high price” and be hunted down.

Given this massive reversal, there is little chance now that New Delhi will be able to negotiate any kind of truce with the emboldened Maoists. The Maoists believe in armed struggle to overthrow the state and bring about socio-economic change, especially in the northeastern and central eastern states of Jharkhand, Chhattisgarh and Orissa, Bihar, Madhya Pradesh, West Bengal and Andhra Pradesh.

The stated goal of the Maoists is to overthrow the state by 2050, an ideal that is widely dismissed as rhetoric.

The massive military offensive to eliminate Maoists was launched a few months ago in the forests of Maharashtra, Chhattisgarh and Orissa. About 100,000 troops have been deployed, with another 20,000 more to be sent in the coming weeks.

Orissa has rich mineral deposits, including 70% of all of India’s bauxite reserves (the sixth-largest deposit in the world), 90% of India’s chrome ore and nickel and 24% of its coal. But tribals and Maoists inhabit much of this mineral-rich land. Mining companies – Indian and multinational – have been lining up to extract this wealth. But tribal agitations and Maoist violence have been blocking their ambitions.

Today, 40% of the top 50 mineral-rich districts in India are affected by Naxalite violence, with repeated attacks on any symbol of authority, both private and public, including mining sites. Jharkhand and Chhattisgarh are the worst-affected states.

About 10,000 people, including police, rebels and civilians, have been killed over the past two decades in Maoist-related unrest. In February, at least 25 policemen were killed in West Bengal when Maoists attacked a camp. In March 2007, the Maoists were blamed for an attack that killed 55 policemen, also in Chhattisgarh.

Home Secretary Pillai said New Delhi’s resolve had now been further strengthened and that “retreating is not an option”, although he ruled out using air power (armored helicopters) against the Maoists.

The latest attack will, however, call into question New Delhi’s approach of using sheer force against the Maoists, whom New Delhi calls “the biggest threat to India’s internal security” – even more so than disputed Kashmir, where for decades India and Pakistan have squared off, at times even briefly going to war.

The latest security action against the Maoists followed an official assessment last year that the Naxalites were “bent on violence and mayhem against the state and the people” and called for the government to “squarely meet” the threat.

New Delhi argues that the Maoists are not ideologically inspired to fight for the poor and kill foes in cold blood.

India has sought advice from United States counter-insurgency personnel who have been involved in fighting the Taliban and jihadis in Afghanistan and Pakistan’s tribal areas.

The regular defense forces have been used only for logistical support as the government has ruled out their direct involvement in taking on the leftists. This could now change.

Critics of the government’s approach say that a more political and humane policy is needed in handling the rebels and that there should be more focus on economic and social development of the deprived population. Chidambaram has been castigated for his inflexible and hardline views.

The government has also been criticized for equating Maoists with terrorists. It is pointed out that the rebels attack mostly symbols of state power (property and personnel) and not soft targets or civilians, as is the case with jihadis in Indian-administered Kashmir.

In June last year, New Delhi labeled the Naxalite group, the Communist Party of India (Maoist), or CPI (M), a terrorist organization, putting it in the same league as other banned outfits such as Pakistan’s Lashkar-e-Toiba – accused of carrying out the massive Mumbai attack in November 2008 – and the now-decimated Liberation Tigers of Tamil Eelam (LTTE) in Sri Lanka.

The spread of the Maoist insurgency is so vast across swathes of India’s mineral-rich states that it is most improbable that it could be defeated by force alone. The might of the US military and its allies have not been able to defeat the Taliban in Afghanistan after nine years. As in that country, the Maoists have strong grassroots support.

The Naxalites are also known to be seeking alliances with secessionists groups, especially northeast insurgents in Assam, Manipur, Nagaland and Mizoram, in a bid to expand their influence and gain a pan-Indian presence.

They have already established links with leftists in Nepal and LTTE fighters – now that their battle is over – are involved in training the Maoists. Maoist rebels in Nepal overthrew the world’s last Hindu monarchy and negotiated their way into government within a decade.

India’s stellar economic growth over the past decade has given rise to a consumer class of 50-100 million people, but more than 800 million people have been left behind, the majority of whom live on less than US$2 a day. These impoverished people, especially farmers, landless laborers and tribal minorities in remote areas, are the prime recruits of the Maoists.

As the bodies mount, there might be some in the corridors of power who question whether the use of an iron fist addresses these socio-economic problems that fuel the insurgency.

Police open fire as farmers run riot, 4 hurt

April 4th, 2010 No comments

Four people were injured as police opened fire to quell an angry mob of villagers who attacked a police team and set ablaze three rooms of Mahuli police station in Sant Kabir Nagar district on Friday afternoon.

Around 40 fields of the wheat crop had caught fire after a live wire passing overhead fell on the field. Following a delayed response from the fire tenders, the locals went on a rampage.

District Magistrate of Kabir Nagar D S Dubey said: “The police had to open fire as the mob had turned frenzy and engaged in violence and arson. Four locals have sustained gunshots and were admitted to Gorakhpur Medical College.”

“The Additional District Magistrate of the district, Ram Sajivan, has been asked to probe the matter.”

Kabir Nagar SP Sugriv Giri said the fields at Hridayapur village suddenly caught fire after a live wire passing overhead fell on the crop around 12.30 pm. Thereafter, the locals informed the nearest police station, following which the fire station was informed about the incident.

The crops in 40 fields had been burnt and the farmers had managed to prevent the flames enveloping the adjacent crops when the two fire tenders reached the spot around 1.25 pm.

Giri said the delayed response by the fire tenders left the villagers angry and over 300 people gathered at the nearby Mahuli police station. They barged into the cabin of the station officer and ransacked the entire room. The policemen remained mute spectators as people damaged the furniture and destroyed the documents kept at the office. While the mob targeted the flat of two sub-inspectors and two constables on the premises, others set ablaze the furniture of the police station. The police jeep and motorcycles were also damaged.
It took about 20 minutes for the additional force to rush to the spot. The policemen initially lathicharged the mob and later fired at them forcing them to leave the police station. Four villagers — Fidai Mohammad, Nizamuddin, Ram Sahai and Bhal Chandra — sustained bullet injuries.

The SP said a case will be registered against some anti-social elements who provoked the mob to engage in arson. Few of them even fired at the police with country-made firearms.

Farmers stand fast

January 25th, 2010 No comments

01/25/2010
Protesting farmers remained at their roadblocks throughout Greece on Saturday and Sunday, obstructing the flow of traffic on many roads and determined to force the government to concede to their demands.

The border blockade at Promahonas, on the Greek-Bulgarian border, was temporarily opened from Saturday night as Serres farmers were awaiting the results of their meeting with Agricultural Development and Foods Minister Katerina Batzeli on Monday.

Their representatives stressed, however, that they were ready to escalate their protest action from Monday, not ruling out a blockade of the Thessaloniki-Bulgaria rail connection, if their demands were refused.

Their protests have had an impact on the local ski resorts, which had expected heightened traffic as a result of the recent snows but had few visitors, since few excursionists braved the prospect of finding roads closed by tractors.

In addition to several intersections and border crossings, farmers used tractors to obstruct the passage of trucks and heavy goods vehicles at the port of Igoumenitsa in northwestern Greece, preventing truckers from boarding ferries for Italy or leaving the port.

Goods vehicles coming off the ferry “Champion” of ANEK lines remained trapped inside the port after their arrival from Italy.

A public prosecutor has visited the port of Igoumenitsa to hold talks with the farmers, while several trucks that had intended to board the “Superfast” ferry to Italy were waiting outside the port.

In a comment on the protests in the newspaper “Free Sunday”, Batzeli stressed that the yearly going forth of tractors onto the roads every winter by farmers was doing them a disservice and “sending the wrong messages to society, which saw and judged them.”

The minister stressed that representatives of all production and social bodies will be meeting at Zappion on Monday for the start of dialogue on farm issues, while the invitation to the representatives of the farmers at the road blocks to take part and outline their positions and proposals remained open.

Batzeli also stressed that the amounts demanded by farmers were excessive: “given that those eligible for farming subsidies number nearly 900,000, if we gave 15,000 euros for every agricultural enterprise the total would be in the region of 13.5 billion euros,” she pointed out.

Police detain nine over south China land riot

January 25th, 2010 No comments

AFP
BEIJING — Police in southern China have detained nine people linked to a violent riot over a land dispute and issued an arrest warrant for the suspected ringleader, local authorities said Sunday.

Club-wielding rioters fearing forced evictions from their homes tossed petrol bombs and torched vehicles in a clash with police in Guangdong province’s Yangshan county on Tuesday last week.

Up to 10 people were injured in the clashes and several vehicles destroyed or damaged in the riot, state press reports said of the latest in a rash of violent incidents linked to land disputes.

Police have taken in nine people for questioning over the riot and issued an arrest warrant for Huang Qiusheng, the suspected ringleader, who remains at large, the county government said in a notice on its website.

Before the unrest erupted, police had gone to Tongru village to arrest Huang, who opposed the pending eviction and demolition of his home and was suspected of illegally manufacturing fire bombs, the government said.

During the riot, up to 40 villagers clashed with more than 100 police officers who responded with non-lethal “riot guns” and tear gas.

The government said items found in the village included a barrel of gasoline and several “sacks” of empty bottles, including 70 empty plastic water bottles. Police also confiscated two bullets and three bullet shells, it added.

China has seen a slew of violent clashes over land, many sparked by forced evictions as officials and property developers seek to cash in on a soaring real estate market.

Earlier this month, police in Guangxi province shot and wounded at least five demonstrators in clashes over a land dispute that also left 11 law enforcement officers injured, state media reports and a local official said.

And one person was killed and scores injured when police clashed with villagers in eastern China’s Jiangsu province over the forced eviction of farmers, residents and a human rights group said.

More people moved in China near Three Gorges dam

January 23rd, 2010 No comments

21 January
Another 300,000 people are to be moved from their homes near China’s Three Gorges dam, according to state media.

It is unclear if the relocations are directly because of the dam and its reservoir but almost 1.3 million people have already been moved from the area.

The Three Gorges project is expected to produce 100bn kilowatt-hours of electricity a year at full capacity.

The dam is the biggest in the world, and opponents have long criticised its huge human and environmental costs.

Controversial project

Initial reports quoted the China Daily as saying that people were being moved to prevent pollution in the reservoir, and to protect people against hazards like landslides. A Three Gorges spokesman has since denied this.

Hu Jiahai, a deputy of the local people’s congress, told the newspaper: “An eco-screen, or buffer belt, is waiting for approval to be built alongside the reservoir to improve the water quality of the Yangtze River streams and reduce the contamination from residents living nearby.

“Additionally, more people will have to move out of the area to avoid geographic hazards, like landslides,” he added.

He said the exact number who would need to move depended on an assessment of the geology of the area.

But Peng Yehua from China Three Gorges Corporation told the BBC: “These people’s relocation is not a part of the Three Gorges Dam relocation project.”

“This relocation of 300,000 is a decision of the Chongqing government, to move residents from high mountain areas with harsh living conditions into better lands.”

The Three Gorges dam has been controversial from its inception.

It was championed by former Chinese leader Mao Zedong. Officially, the infrastructure project has cost $27.2bn (£16.7m), but others believe the real price could be much higher.

Critics claim it will cause massive environmental destruction, and others say the forced resettlement of nearby villagers has left many without compensation.

Scientists also caused concern when they said the massive weight of the swelling reservoir was causing an increase in seismic activity and landslides in the area.

The Faceoff over Land in Rural Indonesia

January 21st, 2010 No comments

Poor farmers are stymieing the government’s efforts to build new roads and ports to boost growth
Semarang, Indonesia – Construction on the six-lane highway meant to span Java, Indonesia’s most populous island, comes to an end 200 yards from Nur Salim’s rice paddy. While bulldozers claw through woodland and level the red earth nearby, they can’t go farther until Salim agrees to sell a patch of land the size of a tennis court. “We’re going to fight to the end,” Salim says in the wooden, single-story home where he and his wife raised their five daughters. “We have no deadline.”

The dispute highlights the obstacles facing President Susilo Bambang Yudhoyono as he tries to fix the country’s roads, ports, and railways. “We have been screaming about infrastructure for years,” says Iskandar Zulkarnain, president of shipping company Internusa Hasta Buana.

While campaigning for his second term last summer, Yudhoyono pledged to double spending on infrastructure, to $140 billion over the next five years. He believes that will help him boost economic growth to 7% by 2014 from an estimated 4.3% last year. During Yudhoyono’s first five-year term, Indonesia built only 78 miles of expressways.

The Trans-Java Expressway might as well be called the Trans-Java Speedbump. The project began in 1988, but the government has yet to obtain more than half the land for the highway, which will stretch some 740 miles. Only about a quarter of it has been built, in more than 20 sections separated by miles of potholed, two-lane roads.

The problem isn’t just with highways. Jakarta’s Tanjung Priok port, the largest of the country’s 2,000-plus seaports, will soon reach capacity. Although an expansion is due by 2013, that will do little to ease congestion once goods leave the quays. Container trucks often need a day to move the seven miles to the nearest highway. The railway from Bandung, Java’s third-largest city, stops a half-mile short of the main port, so goods must be transferred to trucks to make a train connection.

As a result, produce from the Indonesian island of Borneo can cost more than double that from China, says Zaldy Ilham Masita, chairman of the Indonesia Logistics Assn. “Companies come here because they see a huge market, but they don’t intend to make Indonesia a production center because of the high logistics costs,” Masita says.

Plenty of companies want to help. Siemens (SI) and Alstom are interested in building a $200 million rail link from central Jakarta to its airport. General Electric (GE) sees “huge potential” for its power plants, locomotives, jet engines, and more, says David Utama, GE’s Indonesia head.

Potential doesn’t matter when you can’t build. A 1961 law allows the president to seize land from those who refuse to sell, but no president has done that. “Can you imagine the president revoking the land of a poor owner?” asks Frans Sunito, president director of Jasa Marga, which is building the section of highway near Salim’s home. A proposed law would shift the onus of seizures to the Public Works Ministry. While owners could appeal the ministry’s decision, the land would be immediately transferred to the government. The measure would force Salim to sell—which he says he would do for some $38 per square meter. That’s about 15% higher than his neighbors received, so officials are reluctant to make the deal. “How can they call this a negotiation?” Salim asks, puffing on a clove cigarette. “We are ready to sacrifice our land only if the price is right.”

Villagers, police clash over land dispute

January 21st, 2010 No comments

By Zheng Caixiong and Mo Xuan (China Daily)
Updated: 2010-01-21 08:13
GUANGZHOU: At least a dozen people were injured in a clash between villagers and police in northern Guangdong province, in the latest case in the region linked to land disputes.

More than 200 police officers in Yangshan county of Qingyuan, led by Yangcheng township Party secretary Lin Guangqiang, arrived in Huangwu village at about 9:30 am Tuesday to investigate a dispute, a statement from the Yangshan county government said.

Police were reportedly tipped off that villager Huang Qiusheng illegally owned and hid gasoline to make bombs, as well as guns and knives, at home.

However, villagers told local reporters a different story.

Villager Huang Huosheng said the clash broke out after police officers threatened to forcefully clear villagers’ homes to make way for the construction of a key project for Yangshan county.

Only one of the 108 families in the village had agreed to move, and signed a contract to allow the construction of the project, villagers said.

Most of the villagers were dissatisfied with the compensation offered by the relevant government departments.

Police officers sealed off the village at 7 am, Huang said.

At least 10 villagers and several officers were injured in the hour-long conflict, Huang said.

Lin Guangqiang was injured in the conflict also, villagers said.

Two police cars were also reportedly destroyed in the clash.

Police officers used anti-riot weapons and tear gas to disperse the crowd, while villagers used stones and bamboo poles to fight back and defend themselves during the clash, local villagers said.

The conflict was brought under control at about 11 am and police lifted the blockade at about 4 pm.

Chen Tianxiang, a professor from the management school of politics and public affairs under the Guangzhou-based Sun Yat-sen University, told China Daily yesterday that conflicts between farmers and local government departments usually take place only when farmers’ legal interests are compromised, or when the farmers don’t have a channel to express their concerns.

He urged officials to seriously take into account farmers’ concerns when dealing with resettlement and land development issues.

“Relevant government departments should open more channels for farmers to lobby the government for additional assistance and to express their views,” Chen said.

Blockades in Greece

January 19th, 2010 No comments

18 January  FOCUS News Agency
Farmers of the Peloponnese peninsula gather for protest on Tuesday, the online edition of Greek newspaper Naftemboriki reported. They planned to gather at 12 o’clock for a rally and the symbolic occupation of Corinth-Tripoli highway at Stern. Peloponnese farmers threaten that if the ministry of rural development does not pay immediate attention to problems they will proceed with blockades on the peninsula.
Producers of oranges in the country decided to make the protests of local character on Wednesday in the areas of Laconia, the Argolid and Arta.
Ilinden border checkpoint and Kapitan Petko Voivoda border checkpoint are working normally, press centre of Border Police announced. Traffic at Kapitan Petko Voivoda crossing was resumed at 3:00pm. About 30 motor vehicles on the Bulgarian side passed through the border checkpoint.
Greek farmers opened Ilinden border checkpoint as they announced earlier. It is expected crossings to remain open by 7:00pm. Only Kulata border checkpoint is still blocked.
Roads leading to the ports in Greece have been blocked. This is what Greek farmer from the town of Drama, who is a member of the Union of Farmers in Greece, said, cited by a correspondent of Radio Focus-Pirin.
Roads from Greece to Turkey are also blocked. “Roads in Kastoria were also blocked, and also road to Igoumenitsa ferry route is blocked, he added. He said there are 24 blockades all over Greece, and added “We are allocated at certain areas to close down roads”.
Protesting Greek farmers have sent letter to the social network of Bulgarian farmers www.fermer.bg, where they contact Bulgarian farmers. Greek farmers excused for the embarrassment along checkpoints but call on understanding as they clear out the reason for the protest.
Their demands are as follows: increasing subsidies for tobacco until 2013, decreasing of taxes in the agriculture sector, EUR 50 subsidies for hectare of cotton and corn as well as special fuel prices for farmers, freezing credits to Agriculture Bank as well as continuation of EU funds after 2013.

Farmer protests escalate

January 18th, 2010 No comments

01/18/2010
Travel in central and northern Greece continued to be beset by obstacles on Sunday, with drivers needing an average of six hours to make the journey between Athens and Lamia due to tractor blockades set up along the main north-south highway.

At one point, farmers also blocked the old national road to Lamia and smaller roads, forcing drivers onto the single remaining road between Lamia and Thiva, where they could rejoin the national highway, going via Amfissa, the mountain village of Arachova and Livadia.

Having negotiated the difficult roads and weather conditions along this route, motorists were then faced with yet more delays and obstacles between Amfissa and Lamia, where they were once again forced off the main route onto minor country roads and had to go through the centre of Lamia in order to get onto the highway once again.

The same problems in reverse faced drivers heading south toward Athens, since tractors had blocked three key junctions and ruled out all possible alternative routes in between.

In the north, meanwhile, farmers continued tractor blockades at two points along the Egnatia highway, at the Kerdyllia intersection in Serres and at the Chrysoupolis intersection in Kavala, except for a brief interval when they opened the road between Thessaloniki and Kavala so that fans could attend a soccer match between the Olympiakos Piraeus and local Kavala football clubs.

The Egnatia highway spans northern Greece from the port of Igoumenitsa in the west to the extreme northeastern border with Turkey.

Tractors were also continuing to gather at Strymonikos in Serres and at Triglia in Halkidiki but without disrupting traffic.

Further south, in the prefecture of Larissa, tractors were gathering at Nikaia and at Farsala but again without obstructing the movement of vehicles.

Not so lucky were those using the Vogatsikos intersection near Kastoria, where farmers were setting up intermittent tractor blockades at half-hour intervals.

In areas where the highway was blocked, cars were diverted onto the older road network to get around the closed intersections.

Meanwhile, farmers in Grevena have decided to join in the fray and began mobilisations by gathering in front of the prefecture building on Sunday. They are due to hold a further meeting on Monday morning to decide whether they will blockade the Egnatia highway intersection near Grevena.

The farmer protests also figured high in Bulgarian news headlines, after the Bulgarian transport and interior ministries warned Bulgarians to avoid travelling by road to Greece for the next 10 days in case border crossings between the two countries were closed during farmer protests.

Farmers in Fthiotida, to the south, are now trawling for reinforcements in the villages and expect to have additional forces for the Alamana blockade by Wednesday. They appear unconvinced by the assurances given by the government and appear determined to keep up the blockades.

They claim that they have not received sums that were promised them and now face outstanding debts to banks and land rents.

Among those visiting the blockades were MPs like former agriculture minister Sotiris Hatzigakis and current Citizens’ Protection Minister Mihalis Chrysohoidis, who spoke with farmers at length about production costs and the gap in the price paid to farmers for their produce and that paid by consumers. The minister promised measures that would benefit markets and consumers.

Deputy Finance Minister Philippos Sahinidis stressed during a visit to the farmer blockade in Alamana that the critical state of the economy left no room for any further cash support, stressing that he had personally signed for farming subsidies just before Christmas.

Farmers countered by saying that this was money that was “theirs” and should have been paid to them and stressed that the numbers cited as agricultural benefits in the media were inflated and that such sums had never reached them.

Greek Farmers Lift Blockade at Bulgaria Border, Worse to Come

January 16th, 2010 No comments

January 15
Protesting Greek farmers have lifted the blockade at the Ilinden-Eksohi border crossing point on the Bulgaria-Greece border.

Traffic in the area has been restored, the Bulgarian authorities at the border report Friday. Read more…

Farmers threaten to block highways again

January 6th, 2010 No comments

Greece’s farmers are threatening to set up roadblocks along the country’s national roads later this month in a bid to get a better financial deal for themselves, although government sources have dismissed the threat as posturing and a result of differences between the farming unions. Read more…

Chinese rules on home confiscations under attack

December 17th, 2009 No comments

December 17
BEIJING (Reuters) – China’s rules on the forced demolition of homes are under attack after a Beijing man set fire to himself to protest against confiscation of his family’s home, while legal experts urged reforms to better protect residents. Read more…

Landowners dispute Wyoming’s power to take land

December 8th, 2009 No comments

Posted: Sunday, December 6, 2009 5:00 pm | Loading…
Landowners near Casper are challenging Wyoming’s power to condemn their land through eminent domain as part of a state plan to build a road through the area. Read more…