Riga  - The Latvian government rushed to justify its decision to join the UK and Sweden in blocking French proposals to reform the EU's Common Agricultural Policy
(CAP) on Friday.

The Baltic state's agriculture ministry dashed out a special release soon after the vote in an effort to explain why it had broken ranks with its neighbours, Estonia and Lithuania, in the important Brussels vote.

France, the largest single recipient of CAP funds, had proposed mild reforms to the policy which critics say would largely keep subsidies to its farmers intact.

CAP is the largest single item of EU expenditure, accounting for nearly 70 billion dollars annually and is due for renewal when current arrangements expire in 2013.

The ongoing Global financial crisis would marginally affect Indian agriculture sector and it would remain stable at around 4% growth rate. The views were expressed by Union minister for consumer affairs, food and public distribution, Sharad Pawar.

Mr. Pawar was speaking in the sidelines of a conference organized by Forward Markets Commission in Mumbai.

Agriculture Minister Sharad Pawar, after meeting the farm ministers from South Asian countries, told reporters that "We have set aside two million tonnes of wheat that will be given to countries which have been asking for it through diplomatic channels."

Although India had banned wheat exports in 2007, analysts say that robust output and higher stocks at government warehouses have enabled India, the world's second-biggest producer, to set aside some wheat for overseas supplies.

Agriculture Minister Sharad Pawar, after meeting the farm ministers from South Asian countries, told reporters that "We have set aside two million tonnes of wheat that will be given to countries which have been asking for it through diplomatic channels".

Although India had banned wheat exports in 2007, analysts say that robust output and higher stocks at government warehouses have enabled India, the world's second-biggest producer, to set aside some wheat for overseas supplies.

The Pusa-1122 variety of rice has been given the 'basmati' status, which means a boost in exports as well as an increase in its price .However, some exporters are worried about the hindrances this may cause in India's efforts to get a geographical indication, or GI, status for the marquee rice variety.

Cotton processors and traders have criticized the Cotton Corporation of India (CCI) for higher cotton prices for this season. CCI is a government agency that deals with the purchase of cotton at minimum support price, fixed by the government. The processors are worried about the high price of Rs 2,850 a quintal and low profit due to competition and contractual processing of cotton.