India joins 'neocolonial' rush for Africa's land and labour

cowboy · 06-28-2009, 07:02 PM

India, once the colonial jewel of Britain's empire, has been accused of 'neo-colonialism' in Africa where its business people have joined a race with China, Saudi Arabia and elsewhere to buy up agricultural estates and take advantage of cheap labour

By Dean Nelson in New Delhi
Published: 1:46PM BST 28 Jun 2009

Indian farming companies have bought hundreds of thousands of hectares in Ethiopia, Kenya, Madagascar, Senegal and Mozambique, where they are growing rice, sugar cane, maize and lentils for their own domestic market back in India.
Its government has given soft loans as aid to support the overseas ventures in what has been described as a challenge to China and Saudi Arabia in the new scramble for Africa. China, South Korea, and a several Arab countries have led the way in creating new African mega-farms to outsource domestic food production and use cheaper labour.
Critics have described the development as modern "piracy" and "land grabbing" from countries that have in the past been blighted by famine and severe food shortages.
South Korea has bought just under 700,000 hectares in Sudan, while Saudi Arabia has signed a deal for 500,000 hectares in Tanzania.
India is now catching up fast with its government offering financial incentives for companies to produce food in Ethiopia and other African countries. Pulses, cooking oils and maize are in short supply in India.
More than 80 Indian companies have invested an estimated £1.5 billion in buying huge plantations in Ethiopia. The largest among them is Karuturi Global, one of the world's largest producers of cut roses. It has signed deals for just under 350,000 hectares to create what it claims is the world's largest agricultural land-bank. The Bangalore-based company, which has also bought farm land in Kenya, is growing sugar cane, palm oil, rice and vegetables.
Indian farming is dominated by small, family-run holdings, bullock cart transport, and legions of middlemen. The slow, cumbersome system is cited as the main reason why a large proportion of Indian produce rots before it ever reaches the market – the annual loss is valued at up to £6 billion.
So Indian companies see in Africa the possibility to build more efficient and far larger agricultural operations. This is an separate motivation from that of many Arab countries that buy African land to produce food that their homelands cannot.
Raju Poosapati, Vice President of India's Yes Bank, which advises investors in Africa, said a government ban on non-Basmati rice exports had driven Indian companies to grow it in Africa to sell overseas. Indians are now eating more meat and that has led many companies to grow maize animal feed in Africa as there are no government incentives for Indian farmers to grow it at home.
Sharad Pawar, India's agriculture minister, rejected claims that the government supported a new colonisation of African farmland. "Some companies are interested in buying agricultural land for sugar cane and then selling it on the international markets. It's business, nothing more," he told The Daily Telegraph.
Government documents meanwhile show the details of official support, and just of under £500 million in soft loans to encourage African countries to export food to India. New Delhi has also cut import duties for food produced in Ethiopia.
A report by the UN Food and Agriculture Organisation said more than 2.5 hectares of African land had been bought by foreign companies since 2004 and voiced concerns that poor villagers might be ousted to make way for investments. It also said it feared some of the deals may be open to corruption.
Devinder Sharma of India's Forum for Biotechnology and Food Security said the companies buying up land to export food from Africa were "food pirates" and compared them with the English companies that shipped food from Ireland during the 19th century potato famine.
"There are 80 Indian companies trying to get land in Ethiopia, and it's all to be imported back to India. The government of India has been encouraging them," he said, and warned of danger if famine returned to Africa.
"If food is being shipped out and poor people are dying, what will happen? There would be riots," he said.

Invincible · 06-29-2009, 02:22 AM

Follow up news, this was in 7 days ago.

India to invest $4.2 bn in 439 projects in Ethiopia

India to invest $4.2 bn in 439 projects in EthiopiaENA/PTI / Dire Dawa (ethiopia) June 22, 2009, 14:51 IST
India will invest $4.2 billion in 439 projects in Ethiopia, the Indian Ambassador to the country announced today.

"Indian entrepreneurs have received licences from the Ethiopian authorities to invest an aggregate capital of $4.2 billion in 439 investment projects in the country," Gurjit Singh informed on his visit to Dire Dawa recently.

"Trade and investment ties between Ethiopia and India had been flourishing since the two countries were on the same track of development. The co-operation between the countries had been enhanced in the fields of agriculture, human resource development sectors, infrastructure and communication technology," he said.

There is favourable trade and investment climate in Ethiopia, Singh said, adding that India would continue promoting various investment opportunities in the country.

Invincible · 06-29-2009, 02:29 AM

Actually in colonisation era, britishers migrated many gujrati's from india to africa to build rail lines. And after independence the gujrati's lived their for fever.
Something about this gujrati race of indians, these are very business minded people. You leave them in antartica, they will raise a business there too.

MatrixVipin · 06-29-2009, 01:48 PM

Yes gujrati community are hardcore bussiness people.
Atleast I haven't seen any beggar gujrati.

Invincible · 06-29-2009, 01:55 PM

Quote:

Originally Posted by MatrixVipin

Yes gujrati community are hardcore bussiness people.
Atleast I haven't seen any beggar gujrati.

lol you are funny.
gujjus you see in maharahtra are settled businessmen.
you go in gujrat, you will see gujrati, beggers, robbers, murderers, everything.
I've been there while goin to kashmir, and there is enough poverty. Dont think all gujjus are rich.

MatrixVipin · 06-29-2009, 02:10 PM

But we see majority and they are rich.

Invincible · 06-29-2009, 02:17 PM

Quote:

Originally Posted by MatrixVipin

But we see majority and they are rich.

Only in maharashtra. Situation is well balanced in gujrat.
But may be there wud be drastic changes in coming years. Modi is working their as if he has got a magic wand. He is sure gonna change the face of gujrat. Already so many achievments. Billion dollars IT investment, keeping maharashtra back. Nano project. And now first metro project too after delhi.

We want Modi as PM .

MatrixVipin · 06-30-2009, 10:16 AM

People in India don't go by performance.
Sentiments and support to minority works.

cowboy · 07-01-2009, 07:52 PM

Quote:

Originally Posted by Invincible

lol you are funny.
gujjus you see in maharahtra are settled businessmen.
you go in gujrat, you will see gujrati, beggers, robbers, murderers, everything.
I've been there while goin to kashmir, and there is enough poverty. Dont think all gujjus are rich.

are you saying that they are the jewish version of the indian community?

Invincible · 07-02-2009, 04:03 AM

Quote:

Originally Posted by cowboy

are you saying that they are the jewish version of the indian community?

You can say so, except gujjus dont make any inventions. :)

06-28-2009, 07:02 PM	#1 (permalink)
cowboy Status: Super Moderator Join Date: Apr 2007 Location: Vancouver, Can Age: 32 Posts: 4,805 Thanks: 21 Thanked 71 Times in 67 Posts	India joins 'neocolonial' rush for Africa's land and labour India, once the colonial jewel of Britain's empire, has been accused of 'neo-colonialism' in Africa where its business people have joined a race with China, Saudi Arabia and elsewhere to buy up agricultural estates and take advantage of cheap labour By Dean Nelson in New Delhi Published: 1:46PM BST 28 Jun 2009 Indian farming companies have bought hundreds of thousands of hectares in Ethiopia, Kenya, Madagascar, Senegal and Mozambique, where they are growing rice, sugar cane, maize and lentils for their own domestic market back in India. Its government has given soft loans as aid to support the overseas ventures in what has been described as a challenge to China and Saudi Arabia in the new scramble for Africa. China, South Korea, and a several Arab countries have led the way in creating new African mega-farms to outsource domestic food production and use cheaper labour. Critics have described the development as modern "piracy" and "land grabbing" from countries that have in the past been blighted by famine and severe food shortages. South Korea has bought just under 700,000 hectares in Sudan, while Saudi Arabia has signed a deal for 500,000 hectares in Tanzania. India is now catching up fast with its government offering financial incentives for companies to produce food in Ethiopia and other African countries. Pulses, cooking oils and maize are in short supply in India. More than 80 Indian companies have invested an estimated £1.5 billion in buying huge plantations in Ethiopia. The largest among them is Karuturi Global, one of the world's largest producers of cut roses. It has signed deals for just under 350,000 hectares to create what it claims is the world's largest agricultural land-bank. The Bangalore-based company, which has also bought farm land in Kenya, is growing sugar cane, palm oil, rice and vegetables. Indian farming is dominated by small, family-run holdings, bullock cart transport, and legions of middlemen. The slow, cumbersome system is cited as the main reason why a large proportion of Indian produce rots before it ever reaches the market – the annual loss is valued at up to £6 billion. So Indian companies see in Africa the possibility to build more efficient and far larger agricultural operations. This is an separate motivation from that of many Arab countries that buy African land to produce food that their homelands cannot. Raju Poosapati, Vice President of India's Yes Bank, which advises investors in Africa, said a government ban on non-Basmati rice exports had driven Indian companies to grow it in Africa to sell overseas. Indians are now eating more meat and that has led many companies to grow maize animal feed in Africa as there are no government incentives for Indian farmers to grow it at home. Sharad Pawar, India's agriculture minister, rejected claims that the government supported a new colonisation of African farmland. "Some companies are interested in buying agricultural land for sugar cane and then selling it on the international markets. It's business, nothing more," he told The Daily Telegraph. Government documents meanwhile show the details of official support, and just of under £500 million in soft loans to encourage African countries to export food to India. New Delhi has also cut import duties for food produced in Ethiopia. A report by the UN Food and Agriculture Organisation said more than 2.5 hectares of African land had been bought by foreign companies since 2004 and voiced concerns that poor villagers might be ousted to make way for investments. It also said it feared some of the deals may be open to corruption. Devinder Sharma of India's Forum for Biotechnology and Food Security said the companies buying up land to export food from Africa were "food pirates" and compared them with the English companies that shipped food from Ireland during the 19th century potato famine. "There are 80 Indian companies trying to get land in Ethiopia, and it's all to be imported back to India. The government of India has been encouraging them," he said, and warned of danger if famine returned to Africa. "If food is being shipped out and poor people are dying, what will happen? There would be riots," he said.

06-29-2009, 02:22 AM	#2 (permalink)
Invincible Status: Administrator Join Date: Apr 2007 Location: Pune, Incredible India Age: 25 Posts: 4,823 Thanks: 137 Thanked 41 Times in 37 Posts	Re: India joins 'neocolonial' rush for Africa's land and labour Follow up news, this was in 7 days ago. India to invest $4.2 bn in 439 projects in Ethiopia India to invest $4.2 bn in 439 projects in EthiopiaENA/PTI / Dire Dawa (ethiopia) June 22, 2009, 14:51 IST India will invest $4.2 billion in 439 projects in Ethiopia, the Indian Ambassador to the country announced today. "Indian entrepreneurs have received licences from the Ethiopian authorities to invest an aggregate capital of $4.2 billion in 439 investment projects in the country," Gurjit Singh informed on his visit to Dire Dawa recently. "Trade and investment ties between Ethiopia and India had been flourishing since the two countries were on the same track of development. The co-operation between the countries had been enhanced in the fields of agriculture, human resource development sectors, infrastructure and communication technology," he said. There is favourable trade and investment climate in Ethiopia, Singh said, adding that India would continue promoting various investment opportunities in the country.

06-29-2009, 02:29 AM	#3 (permalink)
Invincible Status: Administrator Join Date: Apr 2007 Location: Pune, Incredible India Age: 25 Posts: 4,823 Thanks: 137 Thanked 41 Times in 37 Posts	Re: India joins 'neocolonial' rush for Africa's land and labour Actually in colonisation era, britishers migrated many gujrati's from india to africa to build rail lines. And after independence the gujrati's lived their for fever. Something about this gujrati race of indians, these are very business minded people. You leave them in antartica, they will raise a business there too.

06-29-2009, 01:48 PM	#4 (permalink)
MatrixVipin Status: Senior Member Join Date: Apr 2007 Age: 27 Posts: 4,068 Thanks: 16 Thanked 14 Times in 14 Posts	Re: India joins 'neocolonial' rush for Africa's land and labour Yes gujrati community are hardcore bussiness people. Atleast I haven't seen any beggar gujrati. __________________ Do not lower your goals to the level of your abilities. Instead, raise your abilities to the height of your goals.

06-29-2009, 02:10 PM	#6 (permalink)
MatrixVipin Status: Senior Member Join Date: Apr 2007 Age: 27 Posts: 4,068 Thanks: 16 Thanked 14 Times in 14 Posts	Re: India joins 'neocolonial' rush for Africa's land and labour But we see majority and they are rich. __________________ Do not lower your goals to the level of your abilities. Instead, raise your abilities to the height of your goals.

06-30-2009, 10:16 AM	#8 (permalink)
MatrixVipin Status: Senior Member Join Date: Apr 2007 Age: 27 Posts: 4,068 Thanks: 16 Thanked 14 Times in 14 Posts	Re: India joins 'neocolonial' rush for Africa's land and labour People in India don't go by performance. Sentiments and support to minority works. __________________ Do not lower your goals to the level of your abilities. Instead, raise your abilities to the height of your goals.

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