eChapters

In 1850, Bacillus anthracis was first reported by three individuals in two different countries i.e. Delafond and Davaine in France, and Pollender in Germany. They could not establish the relationship of the bacterium with the infection. Absolute proof of the anthrax etiology as B. anthracis was established by Robert Koch during 1876-77. The name Bacillus anthracis was first coined by Cohn (1875) and the disease ‘anthrax’ was first named by Hippocrates (5th century B.C.). In Greek language meaning of ‘anthrax’ is ‘coal’ referring to the black coloured skin or blood in affected animals.

Murray (1926) and Pirie (1927) first described Listeria independently. In India, animal listeriosis in sheep was first reported by Mahajan (1936) in Andhra Pradesh.

Robert Koch first isolated Erysipelothrix in 1876 from a mouse he inoculated with putrefying blood. Koch initially named the bacterium “Bacillus of mouse septicemia”. Pasteur and Dumas (1882) first isolated Erysipelothrix from the infected pigs. Friedrich Loffler (1886) first experimentally produced the infection in pigs. Rosenbach (1909) first described human erysipeloid. The nomenclature of the bacterium is changed several times and Erysipelothrix rhusiopathiae was finally accepted by the scientific community in 1966. The name is originated from Greek words such as ‘erysipelas’ (red skin), ‘trix’ (hair), ‘rhusius’ (reddening) and ‘pathus’ (disease).

Corynebacterium diptheriae was first observed by Klebs in 1883 and was described in details by Loeffler in 1884. So it is also known as ‘Klebs- Loeffler bacillus’. In 1888, Nocard isolated a similar type of bacteria from cases of bovine farcy. In 1894, Preisz described it completely and revealed its similarities with the diphtheria bacilli. Later it was named as Corynebacterium pseudotuberculosis (Preisz-Nocard bacillus). Bollinger (1890) first reported C. renale from the cases of pyelonephritis in cows.

The genus Trueperella was proposed by Yassin and others (2011) to describe T. pyogenes previously known as Arcanobacterium pyogenes or Actinomyces pyogenes or Corynebacterium pyogenes. The genus Arcanobacterium was first described (Collins and others, 1982) to include the bacteria originally isolated as Corynebacterium haemolyticum from the wounds of American soldiers. On the basis of 16S rRNA comparisons and menaquinone and phospholipid compositions it is proposed that the species Arcanobacterium pyogenes should be reclassified as members of the new genus Trueperella.

The genus Rhodococcus was first introduced by Zopf (1891) as a soil bacterium used in horticulture. Magnusson (1923) described C. equi (Rhodococcus equi) from suppurative pneumonia of a foal.

Rivolta (1873) first described the chain forming cocci in pus collected from the equine infection. Rosenbach (1884) established the genus Streptococcus’ Nocard and Mollereau (1887) first observed the relationship between the bovine mastitis and Streptococcus agalactiae. Lancefield (1933) classified beta-haemolytic streptococci on the basis of group specific-carbohydrate antigens.

Properties of genus

1. Morphology: Streptococci are gram positive cocci, capsulated, non-sporing and non-motile. Each coccus cell is 1µm in diameter. They are arranged in a pair or chain of cells as the cell division occurs in one plane(Figure 1 & 22). The chain formation and the chain length are variable. Streptococcus equi ssp. equi is a constant chain producer. Young cultures are gram positive whereas bacteria present in the pus and older cultures in the laboratory are often stained as gram negative.

Sir Alexander Ogston, a physician from Scotland, first elucidated the role of Micrococcus in formation of pus. He proposed the name ‘Staphylococcus’ (In Greek ‘staphyle’ means bunch of grapes and ‘kokkos’ means berry). Anton J. Rosenbach isolated two different species of Staphylococcus and named them according to the pigmented appearance of colonies i.e. Staphylococcus aureus (in Latin ‘aurum’ means gold) and Staphylococcus albus (in Latin ‘albus’ means white). The studies of Bumm (1885) established the relationship of Staphylococcus with human infections. Nocard (1887) and Guillebeau (1890) isolated Staphylococcus from mastitis in sheep and cattle, respectively and established its pathogenic role in animals.

The genetics is the study of inheritance and variability of organisms. Bacterial genetics is a sub-field which specifically studies transmission of genetic information from one bacterium to its progeny or between the interbreeding bacteria and the expression of genetic information.

Mutation

Hugo de Vries (1848-1935, Dutch botanist) coined the term ‘mutation’. It is originated from a Latin word which means ‘to change’. The heritable change in bacterial DNA sequences is known as bacterial mutation. The mutation will generate a new type of bacteria with altered genotypical and phenotypical characteristics, known as ‘mutant’. The parent bacterial cell from which the mutants are generated is known as ‘wild type’. In nature bacterial mutation is a rare incidence. The spontaneous mutation occurs at a rate of 1 in 10⁵ to 10⁸. The phenotypical expression of mutation occurs quickly as the bacteria are haploid with shorter generation time.

Normal bacterial flora is the bacteria which live on another living being (human or animals) or inanimate object without causing infection

Opportunistic bacteria are part of normal bacterial flora which can produce infection during lowered immunity (immunosuppression) of host or when transferred into other parts of the body

Saprophytic bacteria live on dead or decaying organic matter Infection

Infection can be defined as a pathological condition occurred due to multiplication of microbes.

Intoxication can be defined as pathological condition due to ingestion of microbial toxin (e.g. aflatoxin produced by Aspergillus fungus).

Mycetism is the pathological condition due to ingestion of fungus (e.g. toxic mushroom) which produces toxicity within the body of the host

Growth of bacteria can be defined as change of total population mass, not individual increase in size or mass. Macroscopically visible growth of bacteria on the solid medium is known as ‘colony’. It is estimated that if Escherichia coli are allowed to grow, a single bacterial cell can produce a daughter population with the mass of the whole earth within 2 days! In the environment the bacteria are not actively growing all the time. The mechanisms behind the growth-arrested states of environmental bacteria are not well understood.

Bacterial reproduction

Bacterial reproduction is an asexual process which occurs by binary fission, budding, fragmentation and condiospore or sporangiospore formation. There is no possibility of genetic exchange (reassortment) as it is originated from a single parent cell. Bacterial gene transfer occurs by transformation, transduction and conjugation methods (discussed later in details). These are one-directional DNA transfer methods and are not associated with reproduction. The donor bacteria can give the genetic material to the recipient and the vice-versa does not occur.

Binary fission: In binary fission, bacterial DNA is replicated first and then the parent cell separates. Each daughter cell receives a complete genome, identical to the parent cell. Bacterial DNA replication begins when the cells reach a specific mass. If the cell diameter is constant, longer cells will begin DNA replication earlier than the shorter cells. The shorter cells need time to reach a critical mass required for the initiation of DNA replication. The ugtP proteins were identified to be associated with shorter cells and delayed DNA replication in Gram-positive bacteria (Bacillus subtilis). It was confirmed later that the ugtP act as inhibitor for Z-ring formation.

Bacteria can be defined as a group of diverse and ubiquitous prokaryotic single cell microorganisms. The size of bacteria varies with genera/species. In cocci the diameter varies between 0.5-1 µm. The measurement of bacillus / rod shaped bacteria is 4-8 µm ? 1-1.25 µm. The surface area and volume ratio of bacteria is very high. The nutrients are absorbed through a large surface area and it is rapidly distributed into a small volume. So the growth rate and metabolism of bacteria is very high. The bacterial cell mass is packed near the surface and no circulatory system is required to distribute the nutrients. The growth and metabolism rate of bacilli are more than cocci because surface area and volume ratio of a sphere (cocci) is lowest among all the geometrical forms.

Shape of bacteria

The shape of bacteria is mostly regulated by the rigid cell wall covering the bacteria. Different shapes of bacteria are observed.

Microscope is the primary instrument of a microbiology laboratory and it produces enlarged images of small objects which are invisible by naked eye. With a microscope the operator can get a close view of minute structures which helps in examination and analysis. Examination of minute objects with a microscope is called ‘microscopy’. In microbiology, measurement of the microbial dimension observed under microscope is known as ‘micrometry’.

Types of microscopes

There are two types of microscopes i.e. light / optical and electron microscope depending on the sources of energy to create the image. The optical microscopes use the lenses and light (artificial or sunlight) to make an image. Following types of optical microscopes are available.

Taxonomy (biological systematics) is the branch of science which deals with classification of units or individuals on the basis of similarities and differences. The classification, nomenclature, and identification are three interrelated components of bacterial taxonomy (Cowan, 1965).

Classification: Classification is the arrangement of bacteria into groups (taxa) based on the similarities of certain characteristics. Presently 11,000 bacterial species is classified. At the current rate of 600 bacterial species / year it is estimated to take 1000 years to classify all the bacteria!

Nomenclature: It is the assignment of specific names to the taxonomic groups following the regulations mentioned in ‘International Code of Nomenclature of Bacteria’ (Euzeby, 1997). International committee on systematic bacteriology (International committee on systematics of prokaryotes, ICSP) standardizes the code. The committee is helped by a number of taxonomic subcommittees on different groups of bacteria. The Code can be amended by the Judicial Commission. The Code contains general considerations, principles, rules and recommendations on the naming of prokaryotes (bacteria) up to the rank of ‘Class’.

Microbiology is the branch of science which deals with the diverse minute forms of life such as bacteria, archaea, viruses, fungi, prions, protozoa and algae. The study includes structure, classification, growth and nutrition, natural habitat, genome, antigenic characteristics, virulence determinants, types of toxins produced, pathogenesis, diagnosis and ways to combat the infection caused by the microbes.

7.1. Summary of Findings

This study dealing with the examination of various advantages of commodity futures market to farmers, RMC traders and RMC officials along with the level of awareness about this market among these selected beneficiaries is presented in brief. This chapter summarizes the findings. It begins with the interpretation of the significant findings derived from both secondary and primary analysis. This is followed by suggestions, the section on major contributions of the present study to the existing body of knowledge, on the role of commodity futures market in agricultural development of the state.

6.1. Introduction

This chapter deals with the sample survey conducted on cotton, turmeric and castor seed farmers and recorded various benefits observed by them by using Futures market as a platform for price information. Further, it tries to examine the price discovery efficiency of commodity futures market with the help of secondary data.

It is often believed that future price is a forecast of the price of a commodity during the maturity month of its futures contracts. It is far from true. The futures price of a commodity traded at an exchange market is not so much determined by the anticipated supply of and demand for that commodity in the maturity month of its futures contracts as by the cost of carrying the commodity till the maturity of such contract. That means the spot and future prices of any commodity are always determined by the same basic forces of the present and prospective demand and supply. The difference between the two prices represents merely the cost of carrying the commodity from the present to the future. Such cost may be positive or negative depending on whether the current (not the future) supplies are abundant or scarce respectively when the price of futures contracts of any commodity is in reality relied upon by the physical market functionaries in that commodity as a “reference” price for executing their forward transactions in either the domestic or export market, that price may deem to be “discovered” in the true sense. The application of such reference price for transacting a forward transaction in the physical market in that commodity, in fact facilitates the use of the same future contract for managing price risk for such forward transaction. Hence, the price discovery and price risk management are the two sides of the same coin and efficiency of price discovery is directly related to the price risk management. A commodity exchange or a derivative market is not a mechanism for controlling prices. An efficient futures market is one that discovers prices and provides effective mechanism for managing price risk arising from unavoidable price variations owing to shifts in demand and supply schedule. Prices are determined by the basic demand and supply forces and not the market. Markets reflect the supply and demand conditions from time to time through variation in prices.

5.1. Introduction

This chapter deals with the sample survey conducted on cotton, turmeric and castor seed farmers and RMC traders and Officials and recorded the awareness level about futures, user status, the reason for not using futures and perception about futures.

The research work was planned to understand the level of awareness of agri-commodity futures market among the farmers, RMC traders and Officials of Odisha. The methodology adopted for the awareness assessment was to collect related answers to the questions which helped to evaluate the level of awareness among the beneficiaries i.e. farmers, RMC traders and officials. Quantitative and qualitative data was collected from sample respondents. The study has been completed by collecting data from farmers, RMC traders and officials of Kalahandi and Kandhamal districts which are the highest producers of three sample commodities i.e. cotton, castor seed and turmeric in Odisha. The research was conducted with 150 farmers (50 each for cotton, turmeric and castor seed), 30 RMC traders and 30 RMC officials of Kalahandi and Kandhamal districts of Odisha. The profile of sample farmers is depicted below.

4.1 Introduction

The present chapter starts with a brief description about the history of commodity futures market and emergence of commodity futures market in India. There after it highlights various functions of commodity futures market and their impact on farmers and various other stake holders in the supply chain. Finally, it tries to evaluate the utility of futures from the platform of commodity exchanges especially from MCX and NCDEX of India.

A simple definition of a commodity is a physical substance that can be extracted directly from the environment, processed and sold commercially. Natural resource is another term often used to describe commodities which occur naturally in or on the ground. Commodities fall into three main categories such as energy, metals and agriculture. As commodities can be sold, they have a price which is governed by supply and demand. Compared to many manufactured items, for example flat screen TVs, the question of supply and demand is paramount to how commodities are priced. The commodities that have always been a part of our day-to-day existence are also one of the finest investment avenues available. The wheat in our bread, the cotton in our clothes, our gold jewels, the oil that runs our vehicles etc are all traded across the world in major exchanges. Commodities can be traded on either spot markets, or in the form of futures. Spot markets are those in which the commodity is traded immediately in exchange for cash or some other good. In the form of futures (or options), what is traded is not the goods itself, but a contract to buy or sell the commodity for a certain price by a stated date in the future. Over the ages, commodities have been the basis for trade and industry. They have prompted commerce, encouraged exploration and altered the histories of nations. Today, they play a very important role in the world economy with billions of dollars of these commodities traded each day on exchanges across the world. Commodities today have become an attractive investment vehicle. In the current investment scenario, it is increasingly getting difficult for individuals and institutions to create a well-balanced investment portfolio. With uncertainty in interest ratio, it is tough for the investor to beat the ever-rising inflation. Averse to being over exposed to equity markets, the investors are left with limited choices… well no more!

3.1. Introduction

This chapter intends to examine the economic importance of cotton, turmeric and castor seed in the agricultural economy of Odisha. Given the fact that Odisha is one of the major producing states of the country for these three crops, their physical markets have national level relevance in terms of determining prices. The chapter presents a brief profile of the agricultural economy of Odisha with a focus on these three crops and their supply conditions including cropping season, pattern, area under cultivation and productivity. Secondly, it tries to investigate the market structure, supply chain and marketing practices in cotton, turmeric and castor seed based on the data obtained from the secondary sources.

Indian economy is agro-based and agriculture is its mainstay as it constitutes the backbone of the rural livelihood security system. Agriculture has been and still continues to be the life line of the Indian economy since economic security is essentially predicted upon the agricultural and allied sectors. The agriculture sector encompasses crop production, animal husbandry, fisheries, agri-business, etc. Crop production depends upon crucial inputs such as good seeds, fertilizers, pesticides, irrigation, human labour, machinery and management.

As the largest private enterprise in India, agriculture supports more than 60% of the population, contributes nearly 19% to India’s Gross Domestic Product (GDP) and 11% to the total exports. Around 51% of the geographical area in India is already under cultivation as compared to 11% of the world average¹. Agriculture is also a social sector where non-trading concerns like food and nutritional security, employment and income generation, poverty alleviation, ecological and environmental concerns play a significant role.

2.1. Introduction

There are few studies on the performance and efficiency of Indian commodity derivatives market. Despite a considerable amount of empirical literature, there is no general consensus on whether or not the markets are efficient. As far as the role of futures contract in agricultural commodity is concerned, several studies have been attempted to examine their contribution towards agricultural development of any state and/or country. This chapter presents the review of existing literature on the concerned topic based on interrelationship among the spot and futures market in agricultural sector, role of futures market in discovering spot prices, futures market and commodity price volatility etc.

1.1. Prologue

In present era, agriculture is a cause of global concern in the context of price volatility with a rising trend growing concerns for food security and resultant trade restrictions, global economic conditions in the recent past, the forecasted rate of reduction of growth of agricultural land over the next two decades, increasing mismatches between supply of agricultural products in relation to growing demand and the climatic changes which are wielding pressures on agricultural production. Thus, enhancing agriculture production and productivity have emerged as a global challenge. India, with 2.4 per cent of the world’s geographical area, is the largest producer of pulses, tea, and milk and second largest producer of fruits, vegetables, wheat, rice, groundnut and sugarcane in the world but supports about 16.2 per cent of the world’s population. Coupled with small scale land holdings and deep rooted poverty in rural areas, the magnitude and dimensions of challenges for agriculture policy-makers have increased manifold. So far as the agriculture sector in Odisha is concerned, it contributes only 15.6 percent in 2013-14 towards State Gross Domestic Product (SGDP), but provides employment and sustenance to more than 60 percent of the total workforce of the State. In this sense, the agriculture sector is still the mainstay of the economy of Odisha. According to the Economic Survey 2013-14 of Odisha, despite wide annual variations in its growth, the agriculture sector had grown at a rate of 12.72 per cent in 2012-13. However, a negative growth of 3.53 percent is anticipated during 2013-14 due to cyclonic storm Phailin and flash floods in the State in October 2013. The real per capita income of Odisha was Rs. 25,891 in 2013-14 which was around 65 per cent of All-India real per capita income of Rs.39, 961. According to the 68th round of National Sample Survey Organization (NSSO), the monthly per capita consumer expenditure (MPCE) for rural and urban Odisha is below the respective national averages. In the food and non-food consumption behaviour, an average Indian spends more than an average person in Odisha. In short, the above parameters pinpoint that the State of Odisha has been lagging behind the national economy & highlights the necessity of achieving higher growth on a sustainable manner across the sectors particularly the agriculture sector in order to uplift the society from underdevelopment & poverty. Though the contribution of agriculture to Net State Domestic Product (NSDP) has declined, the percentage of workforce engaged in agriculture has remained somewhat unchanged. This implies that there has been an overcrowding in agriculture without any noticeable increase in production.

When any serious work is undertaken involving the use of living cultures it is necessary to keep these alive for use during the work and for future reference.

This can be done either by growing on a suitable substrate and transferring to fresh media, as the nutrient is used up or by treating the cultures in some way, which halts metabolism until they are revived for use. The former method is time consuming and cultures are at risk whenever they are handled, so various means are devised which can lengthen the periods between sub culturing. The latter methods tend to be complex and expensive.