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July 10, 2013

10/07/13: Grain storage in tropical climates; Russia's grains hit by drought; India's grain subsidy programme

Grain storge is a vital, yet often overlooked, part of the food and feed supply chain. 

Tropical climates that allow for year-round farming would seem to be a tremendous economic advantage, but for corn and soybean farmers in the Brazilian state of Mato Grosso it also poses a problem - an abundance of grain followed by about a 10 percent post harvest loss, partially due to a lack of storage. 

"There is a 34 percent undercapacity of soybean storage, and the situation is aggravated by the rapidly increasing production of second-crop maize," said University of Illinois agricultural economist Peter Goldsmith. 

"The worst situation occurs in northern Mato Grosso with a simulation of a full-maize second crop. The potential to succession crop is great and current levels of storage are low. There is clear evidence of a shortage of storage, particularly private and cooperative, as grain production rises in the state," he said.

Goldsmith conducted the research project, which was the first to employ Geographic Information System (GIS) software to map the coordinates of commercial, cooperative and private grain storage facilities in Mato Grosso. 

The Russian grain crop is expected to fallen below government targets after drought hit growth in some regions, reports Bloomberg.

The harvest may reach 90 million to 94 million metric tons in the 2013-14 season which is just below the Agriculture Ministry’s 95 million-ton target.

The Indian government is planning to expand its grain subsidy programme in a bid to tackle the country's hunger problem. Sixty-seven percent of India's population, or 800 million people, will have the right to buy up to 5 kilos of rice, wheat and other cereals from the state each month, or receive cash compensation. 

Is this the way to end hunger in the world's second-most populous country? Andy Mukherjee, Reuters, gives his opinion.

These are soybean harvest operations near Sinop, Mato Grosso, Brazil. Credit: Peter Goldsmith


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