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Govt's e-marketplace can achieve Rs 5-trn business in under 5 years: Goyal
Dec 06, 2019
The target of Rs 5 trillion business through government's e-marketplace GeM is achievable in less than five years given the huge amount of procurement done via the platform, Commerce and Industry Minister Piyush Goyal said on Thursday.
GeM symbolizes a transparent and corruption free procurement system and it will unify all government procurement, across all ministries and departments of Union and state governments within a defined timeframe, Goyal said.
He was addressing the inaugural session of the 3rd edition of the National Public Procurement Conclave here.
'The target of Rs 5 trillion business through the GeM platform is achievable in less than five years. GeM should take a high jump and be now open to common man, so that they benefit from lower cost of products and services that are available on GeM,' he said.
Terming GeM unique in various ways as it does not operate on any algorithms to support/ promote any product or supplier and also does not solicit any business through advertisements, deep discounts, predatory pricing, he said it will help bring down corruption in public procurement in the country.
'GeM focusses on giving balanced and fair access to all suppliers in an agnostic manner in market place. Make in India should be given preference through GeM portal by giving preference to products and services of India,' the minister said.
Listing of high-potential farm goods, global alerts to boost exports
Dec 06, 2019
In 2018-19 agriculture exports were at $ 38.73 billion, was almost the same as the amount exported the previous year. The share of agriculture in total exports declined to 11.76 per cent compared to 12.66 per cent in 2017-18 and 12.07 per cent in 2016-17.
The official pointed out that while India exported a large variety of farm products, there existed a lot of untapped potential which needed to be explored. 'Be it floriculture, fruits and vegetables seeds and fresh, processed and dried fruits and vegetables, the scope for growth is immense. Drawing up a list of potential items and potential markets is an attempt to ensure that enough attention is given in the desired direction,' the official said.
Dissemination of information on global developments such as commodity price movements, changes in various quality and technical requirements in important markets and the production situation in competing markets could help domestic exporters in gearing up and responding accordingly. 'The Commerce Ministry is working on a weekly alert system on global agricultural developments for all stakeholders and it will be put in place soon,' the official said.
The ongoing efforts in the States to prepare a comprehensive State Agriculture Export Action Plan, inclusive of all elements suggested in the AEP, will also be given a push with the Commerce Ministry writing to all the States to expedite it, the official added. The elements include creation of infrastructure for agriculture exports such as sorting, packaging, testing and certification and cold storage.
Southeast Asian corridor eyes business opportunities with Delhi via Bay of Bengal
Dec 06, 2019
India's decision to stay out of the Regional Comprehensive Economic Partnership (RCEP) may increase Southeast Asia’s dependence on China, but a recently opened corridor between Thailand and Myanmar could ease those concerns by bringing new business opportunities for five ASEAN countries and India.
The new bridge - part of the East-West Economic Corridor between Thailand and Myanmar that opened a few weeks ago will give Cambodia, Laos, Myanmar, Thailand and Vietnam access to the vast Indian market and reduce heavy reliance on China, ET has learnt.
The second Thai-Myanmar Friendship Bridge across the Moei River, which connects Myawaddy, a city in Myanmar’s eastern region, and Mae Sot district in western Thailand, was built at a cost of about $140 million, according to the Thai government. Distribution of goods will become smoother on this new highway link.
The East-West Corridor is a project to build a large economic bloc along a 1,700-km land route from Vietnam to Myanmar via Laos and Thailand. From there, Southeast Asian states can gain access to India over the Bay of Bengal.
Amazon to take Indian MSMEs to 180 countries; here’s how small businesses can go global
Dec 06, 2019
E-commerce company Amazon India on Thursday said it has signed an MoU with Punjab Small Industries & Export Corporation Limited to carry out workshops for MSMEs to export their products to potential customers in over 180 countries through the company’s Amazon Global Selling Program. Amazon will train and onboard MSMEs at key MSME clusters in Punjab including in Ludhiana, Jalandhar, Amritsar, Patiala and Bathinda. Amazon launched the Global Selling Program in May 2015 for its sellers to sell goods outside India. It has more than 50,000 Indian manufacturers, sellers and exporters selling across Amazon’s 12 international marketplaces.
Helping MSMEs get onboard their platform to sell online along with providing necessary support and mentoring in the process has been the focus for both Amazon and Flipkart. The latter also on Thursday announced signing MoUs with the Punjab government to acquire local sellers, artisans, weavers and MSMEs to sell via its marketplace platform. The signing by Amazon and Flipkart with the state government was done at the Progressive Punjab Investors Summit in Mohali. Amazon’s partnership with Government of Punjab signifies the growing interest of large global enterprises in Punjab, said Vini Mahajan, ACS Industries, Government of Punjab.
Centre pushes for eNAM in states without APMCs
Dec 06, 2019
The Centre is pushing the online agri-trading platform eNAM in states that do not have Agricultural Produce Market Committees (APMCs) to give farmers bigger opportunities to sell their produce.
Finance minister Nirmala Sitharaman recently asked states to scrap APMCs and join eNAM to help farmers get better price realisation of their produce. APMC is a marketing board meant to moderate prices and prevent big traders from exploiting farmers.
Cane farmers may have earned up to Rs.9,000 crore more under revenue-share, rather than FRP, model: CACP chief
Dec 06, 2019
Contrary to popular perception, opting for a revenue share, as recommended by the C Rangarajan panel in 2012, instead of the practice of paying a fair and remunerative price (FRP) for sugarcane, would not have resulted in any loss for farmers. Rather, farmers would have gained Rs.8,000-9,000 crore more in the past 10 years, said Commission for Agricultural Costs and Prices (CACP) Chairman Vijay Paul Sharma on Thursday.
The CACP, which compared the revenue-share mechanism with the FRP for 10 years — from 2009-10 to 2018-19 — found that farmers would have got more than the FRP during five of these 10 years on account of higher sugar prices, and slightly less than the FRP during the other five.
But, overall, farmers would have got an additional Rs.8,000-9,000 crore, Sharma said while inaugurating the 85th Annual General Meeting of the Indian Sugar Mills Association (ISMA) here. Currently, most sugar-producing States, including Maharashtra, Karnataka and Andhra Pradesh, pay an FRP of Rs.275 per quintal for cane, while Uttar Pradesh and Tamil Nadu have a State Advised Price, which is usually slightly higher than the FRP.
The Hindu Business line
India set to make modest recovery on reforms:OECD
Dec 06, 2019
India’s economy is set for a modest recovery after a loss of momentum, as reforms in taxation, business regulations and steps to upgrade infrastructure start to bear fruit, the Organization for Economic Cooperation and Development (OECD) said in a report on Thursday.
The OECD economic survey of India said Asia’s third largest economy’s growth will slow down to 5.8% in 2019, but will recover to 6.2% in 2020, and 6.4% in 2021. India’s economy had expanded at 6.8% in FY19, as per official government data. In the June quarter, it expanded at 5% and in the September quarter, the slowdown deepened with a 4.5% expansion, the slowest pace since March 2013.
Further reforms to modernize the economy are now needed to drive the creation of high-quality jobs, as well as measures to improve public services and welfare, said the report.
It said India has greatly expanded its participation in global trade in recent years, but private investment remained relatively weak and employment rate has declined amid a shortage of quality jobs. It also noted that rural incomes were stagnating.
OECD, however, called India a growth champion and a major player in the global economy.
However, this slower pace of growth underlines the need to fully implement existing reforms and continue lowering barriers to trade to generate the investment and jobs India needs to raise living standards across the country, a statement from OECD said quoting chief economist Laurence Boone. The report was released in the capital in the presence of chief economic advisor in the finance ministry, Krishnamurthy Subramanian.
An opportune moment
Dec 06, 2019
After three decades of double-digit growth, China is slowing its economy to rebalance between volatile export market-driven economy and stable domestic demand-driven economy. Ample opportunities will emerge for India to take part in the market which has been vacated by China.
India, being a labour-intensive industry-based country, pitches for high potential in agriculture and allied services. According to a study, India is faring better than China in regards to its export of meat, tea, cereals, animal vegetable fats and oil and pharmaceutical products.
Besides slow growth in the economy, China is facing an onslaught of Trump's tariff war. More than USD $ 200 billion worth of Chinese exports to the USA are being subjected to Trumps' high tariffs. Even though India is far behind China in producing and exporting these items, this gap can be narrowed with a move towards increasing investment in these sectors, along with government support.
For example, the USA is the biggest importer of apparels from China. Apparel is also an important item in India's exports to the US. Chinese export of apparel to the USA is worth nine times that of India. The high tariff on Chinese apparel will shrink its export to the USA. This will vacate a huge market for India to penetrate, albeit, against stiff competition from Vietnam.
A unique feature of the US apparel market is that it is cotton-based. Incidentally, China is a cotton deficient country. This will be a leg up for India as India is one of the major exporters of cotton to the world. It is also one of the major items of China's import from India.
There is an opportunity for a significant increase in the export of raw cotton to China from India after China imposed 25 per cent tariff on imports of cotton from the USA as retaliation. Of the 5 billion bales of cotton imported yearly by China, 40 per cent are imported from the USA.
Indian shrimp looks to China for demand growth
Dec 06, 2019
Indian shrimp looks at China for growth in demand as US imports is seen slowing. According to a trade report by FAO’s Globefish, which is responsible for information and analysis on international fish trade and markets, China is now the world’s number one market for shrimp and strong demand from China kept the international shrimp trade stable in 2019.
Globefish reports that during the second half of 2019, international shrimp trade escaped another market crash supported by strong imports by China. However, the three other large traditional markets — the US, the EU and Japan — posted negative import growths during this period.
The report also mentions the likelihood of lower shrimp exports from India in 2019 as overall exports of shrimp declined from most countries in Asia, due to lower import demand, although exports increased to China in large percentages.
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