The complex language used in the notifications of the CBIC regarding customs duties needs simplification to help industry in understanding those orders as they carry crucial details, economic think tank GTRI said on Thursday. The Global Trade Research Initiative (GTRI) said for this the CBIC (Central Board of Indirect Taxes and Customs) must use services of communication experts for help in drafting easy to understand notifications containing necessary details.

 

This will help over a lakh firms importing merchandise exceeding USD 660 billion in 2023 and it will also add to the ease of doing business with zero cost to the government and immense benefit of clarity to the Indian industry, it said.

 

'Notifying import duties is a critical mandate of CBIC. Firms pay import duties as notified by CBIC, but firms cannot do it on their own as the CBIC notifications use complex language and mostly refer to back notifications unintentionally hiding complete details needed to know the duty or import conditions on a product,' GTRI Co-Founder Ajay Srivastava said.

 

Using simple language would also enhance transparency in its tariff and other notifications, he added.

 

Import duties in India vary significantly, ranging from 0-150 per cent.

 

These duties include components like basic customs duty, social welfare cess, Agriculture Infrastructure Development Cess (AIDC), and IGST (Integrated Goods and Services Tax).

 

Citing an example, the GTRI said a company importing tennis shoes would pay 35 per cent basic customs duty, 3.5 per cent social welfare cess, nil AIDC, and 18 per cent IGST.

 

However, the total duty is not a simple sum of these percentages but is calculated using a specific formula, resulting in a total duty of 63.43 per cent.

 

'It is impossible for a layman to find out individual duty components for a product and calculate the total duty payable,' Srivastava said.

 

This complexity poses a challenge, especially for small firms, in determining the correct customs duty for their products, the GTRI said, adding that they have to seek expert help to understand and comply with the various duties, as the information is spread across numerous notifications each year.

 

Talking about a recent notification regarding some gold items, it said a person needed to look at, at least 11 notifications that amended the oldest notification.

 

'This roundabout reference makes understanding the update challenging. The notification could have simply stated that the government has imposed an AIDC of 5 per cent on gold or silver findings, avoiding the need for cross-referencing multiple documents,' it added.

 

It suggested the CBIC to use straightforward, non-technical language to make notifications easily understandable and standalone, eliminating the need for cross-referencing.

 

Further, they should clearly state relevant products and corresponding duties in each notification to avoid confusion; and compile all duty-related information under various conditions into a single notification; and adopt a comprehensive approach like the Directorate General of Foreign Trade (DGFT) to ensure each notification is complete in itself.

 

'Implementing these suggestions would significantly elevate the effectiveness of CBIC notifications. Clear, direct, and comprehensive communication is key to ensuring compliance and ease of interpretation,' it said.

India has begun commercial export of pomegranates to the USA after it lifted the export ban in 2022. The government expects this move to open a big market for the Indian pomegranates, a fruit which is being increasing preferred by consumers across the world for its health benefits.

 

A consignment of 1344 kilograms of pomegranates of Kay Bee Export treated in the presence of an inspector from the USA was shipped by air on January 24. 'The pomegranates were first processed at the pack house of Kay Bee Exports and then irradiated at the Irradiation Facility Centre (IFC) of Maharashtra State Agricultural Marketing Board (MSAMB) at Vashi in the presence of the US inspector to Florida in USA,' said MSAMB in a release.

 

It added, 'In 2017-2018, the United States had banned the import of pomegranates from India due to fruit fly infestation in pomegranate.'

 

Th Agricultural and Processed Foods Export Development Authority (APEDA) and the National Plant Protection Organisation (NPPO) had jointly started discussions with the United States Department of Agriculture to lift the export ban. However, the USA has put a few conditions and prescribed some processes like mite wash, sodium hypochlorite treatment, washing, drying etc before the pomegranates are packed in boxes followed by irradiation, said Maharashtra state government officials.

 

India expects to tap a big market for pomegranates in the USA. 'The USA has included pomegranate in the dietary guidelines for skin disorder which has created a huge demand for pomegranate in USA. The Indian pomegranate variety has more demand than the California pomegranate variety. As this year’s pomegranates season in California has ended, there is scope for Indian pomegranates to capture the US market,' said MSAMB.

 

Like in case of mangoes, for which the USA sends an official as inspector to supervise the processing of mangoes for exports, it has sent an inspector for the pomegranate processing.

 

Maharashtra is the top producer and exporter of pomegranates in the country.

 

'We has done a trial shipment of pomegranates with the INI Farms about two months ago. We are currently using the air route as the freight time and costs are high by the sea. The ongoing Israel and Palestine war has made it tough to use the shorter Red Sea route. We expect the exports to increase after use of the sea routes becomes a feasible option,' said an official of the MSAMB, who requested not to be quoted.

Arunachal Pradesh Chief Minister Pema Khandu has said that the government will establish a mini food park in the West Siang district with food processing units for all produce of the entire Siang belt. Khandu declared that the Arunachal Pineapple Festival, held at Bagra for the first time as a community initiative in collaboration with Arunachal Pradesh Marketing Board, will be an annual event to be organized by the state department of Horticulture.

 

Speaking at the closing ceremony of the three-day event, Khandu appreciated the local residents under the banner of All Bagra Welfare Society for conceptualizing the festival in collaboration with the state marketing board to highlight and revive pineapple cultivation in the area.

 

'I must congratulate the All Bagra Welfare Society for organizing this unique and novel event without relying on government funding,' he said.

 

Underscoring West Siang’s potential in horticulture, Khandu assured to establish a mini food park in the district with food processing units for all produces of the entire Siang belt.

 

It may be noted that Bagra village in particular and Pushi Bango in general cultivated pineapple in large scale since 1950 under the patronage of the first pineapple grower of the area late Tojo Bagra.

 

A pineapple grower association was formed in 1980 to explore better marketing avenues, regulate price and push for establishment of a large scale processing unit. Eventually a canning factory was established but couldn’t sustain.

 

The Pineapple Festival aims to push for at least 2000 to 5000 hectors of pineapple, orange, lemon, banana, etc cultivation in the area.

India’s resilient agriculture sector has been a major shield against geopolitical upheavals such as the Red Sea disruptions, which prompted many countries to have a'long-term understanding' with India for food exports, Union finance minister Nirmala Sitharaman said on Thursday adding that the government continues to boost the sector with enhanced focus on R&D aiming to bolster exports of value-added products.

 

Replying to a specific question on the features and future of Indian agriculture, she said:'We should be extremely glad for one thing. There are countries, including some very big countries, who are not self-sufficient in food grains, who are not self-sufficient in horticulture, who are not self-sufficient in milk. Who [are] certainly not self-sufficient in fish and poultry… And India Is self-sufficient… in all these.'

 

In some of them India is the world’s number one or number two producer in terms of the quantity and is also in a position to export.'Whether your milk and milk products. Whether it is your horticulture, your fruits. India is one of the top exporters,' she said. The finance minister was addressing students of Hindu College in the Capital on the occasion of its 125th anniversary.

 

India’s exports of foodgrains registered a steady growth in the last few years as the country’s share in world foodgrain exports rose from 3.38% in 2010 to 7.79% in 2022, according to the United Nations Commodity Trade Statistics Database (UN Comtrade) data. Top agricultural items exported from India included marine products, rice, sugar, spices, buffalo meat, wheat, castor oil and processed food items. Key export destinations for Indian products are the US, China, Bangladesh, the United Arab Emirates (UAE), Vietnam and Saudi Arabia.

 

Sitharaman said India may not be self-sufficient in pulses and oil seeds, but it is a leading producer of some commercial crops such as cotton, coffee, tea and rubber.'India is one of the top countries which produces high quality rubber, natural rubber… [which] is grown in Kerala and… the northeast.'

 

'So, we are one of those very fortunate countries in the world -- which is affected by war [Russia-Ukraine war and Israel-Hamas war], your Red Sea conflict – [making] movement of food grains becoming very, very logistically challenging and costly,' she said.

 

FM asked students not to waste food.'I, therefore, appeal to you, please don’t waste food. We may be self-sufficient, but there are a lot of people even today, who find it difficult to buy all that they want to buy. So be caring. Take as much as you want... Don’t fill your plate up and waste it. This is a wonderful country which can feed every one of us. But, we should not be greedy.'

 

'So, that’s the feature. But what’s the future?,' the FM said while elaborating the second part of her reply.'The future is – there are a lot of countries which want to have a long term understanding with India for food exports. Processing of food. Export of processed food. Export of value-added food. Immense possibility exists in agriculture,' she added.

 

Addressing the youth of the country, Sitharaman asked them to actively participate in farming.'We are investing in R&D in agriculture, and I’m sure many of you who have interest in that area should go back to your respective villages. Even if there is a small holding, at least as a matter of hobby like pursuit. Start attempting to do something in agriculture. It’s so rewarding, not just financially, even otherwise,' she said.

 

Answering another question on direct benefit transfer (DBT), the Aadhaar-enabled digital mechanism to transfer money directly in the bank accounts of the poor, she said DBT brought transparency and efficiency besides stopping pilferage of subsidies for the vulnerable. It resulted in huge savings, she said as about 44 schemes under the DBT mode since 2020 saved syphoning of about Rs.2.5 lakh crore by unscrupulous elements by eliminating unintended beneficiaries.

 

Sitharaman said the government is committed to provide benefits of welfare schemes to all eligible citizens and it is close to reaching the saturation level in several key schemes. The Modi government has laid'the material foundation' for a ‘Viksit Bharat’ by empowering people by meeting their basic necessities.

 

She said the Modi government doesn’t differentiate between people. The government has categorized India into four groups--Youth, Women, Farmers and Poor-- and efforts are made for betterment of these groups irrespective of caste, creed and religion, she added.

Union Shipping Minister Sarbananda Sonowal will inaugurate the India-Russia workshop in Chennai for operationalisation of the eastern maritime corridor, linking Chennai and other ports on the east coast with Vladivostok and far east ports of Russia, on Wednesday.

 

The workshop is the outcome of talks between Sonowal and Alexey Chekunkov, Russian minister for the development of the Far East and Arctic, in September last year. The minister had invited Russian delegates for a workshop in Chennai on the eastern maritime corridor, which was conceptualized during the second India Russia Strategic Economic Dialogue held in Delhi in 2019.

NITI Aayog, Ministry of Agriculture and Farmers' Welfare (MoA&FW), and Food and Agriculture Organization (FAO) of the United Nations on Wednesday jointly launched the 'Investment Forum for Advancing Climate Resilient Agrifood Systems in India', an official statement said. The initiative aims to develop an investment and partnership to advance climate-resilient agrifood systems among the government, private sectors, and farmers' organisations, and financial institutions in India, it said.

 

Delivering the keynote address at the inauguration, NITI Aayog Member Ramesh Chand emphasised on the need for awareness on how agriculture contributes to climate change, citing a contribution of a little more than 13 per cent of the total greenhouse gas emissions in the country.

 

He observed that agriculture could play a role in carbon sequestration through tree plantation on farmland.

 

Chand also called for a new direction in economic analysis of agriculture production, considering the impact on natural resources, climate change, and future generations.

 

He proposed incorporating metrics beyond financial prices to evaluate the economic impact of agricultural activities.

 

MoA&FW Secretary Manoj Ahuja highlighted the significance of a multi-stakeholder approach in addressing climate challenges in India.

 

He stressed on the importance of considering the perspective of small and marginal farmers, who constitute 85 per cent of the farming population in India.

 

Shombi Sharp, UN Resident Coordinator in India, said without an answer to financial crisis there can be no answer to the food crisis.

 

She observed that with food demand is predicted to grow at least 50 per cent by 2050, and 'we urgently need to scale up investments in climate resilience in agriculture to ensure future generations have the resources needed to grow enough food'.

 

According to the statement, the two-day meet paved the way for discussions and deliberations among key stakeholders, and their perspectives on national priorities, investment opportunities, partnership, technical support and cooperation.

French President Emmanuel Macron's visit as the chief guest for the Republic Day celebrations is likely to give a fillip to the ongoing talks for a comprehensive trade agreement between India and EU, economic think tank GTRI said on Wednesday. France is a key member of the 27-nation bloc European Union (EU).

 

In June 2022, India and the EU restarted the negotiations for the long-pending trade and investment agreement, after a gap of over eight years.

 

The negotiations for the ambitious free-trade agreement (FTA) were suspended in 2013 after several rounds of talks spanning six years.

 

Macron will be the chief guest at the Republic Day celebrations on January 26 that would make him the sixth leader from France to grace the prestigious annual event. He will also visit Jaipur on Thursday.

 

The Global Trade Research Initiative (GTRI) said that this visit is expected to provide an impetus to various domains of mutual interest, ranging from defence cooperation to economic ties, and from energy collaboration to space and nuclear partnerships.

 

The discussions will likely pave the way for new agreements and deepen existing cooperation, reflecting the dynamic and evolving nature of the India-France strategic partnership, it said.

 

'France, as India's eighth largest trading partner, aims to strengthen trade and investment ties. Both countries are negotiating an FTA (India-EU FTA) to further expand the relationship. They may discuss market access, intellectual property rights, and investment facilitation,' GTRI Co-Founder Ajay Srivastava said.

 

The seventh round of talks for the proposed agreement will be held from February 19-23.

 

Srivastava added that the discussions may include counterterrorism, intelligence sharing, and defence technology transfer.

 

'Potential collaboration is also expected in renewable energy, green hydrogen, and sustainable infrastructure development, underscoring their commitment to combating climate change,' it said, adding that discussions between the two countries may also focus on enhancing multilateral cooperation on global health, food security, and climate change.

 

The growing space partnership between India's ISRO and France's CNES, including joint missions and technology transfer, will likely be a topic of discussion besides increasing cooperation in the civil nuclear segment, it said.

 

The economic relationship between India and France is marked by significant business presence, trade, and investment.

 

Over 1,000 French companies operate in India across various sectors like manufacturing, services, and technology, while more than 200 Indian companies are established in France.

 

In 2022-23, the bilateral trade reached USD 19.2 billion (export USD 7.6 billion and imports USD 6.2 billion).

 

India's exports to France included diesel (USD 707.9 million), ATF (USD 405 million), turbojets (USD 496 million), apparels(USD 850 million), footwear (USD 157 million), smartphones (USD 248 million), gold jewellery (USD 160.5 million), airplane parts (USD 158 million), medicines (USD 447.8 million), and chemicals (USD 364.5 million).

 

On the other hand, main imports included planes, helicopters, and/or spacecraft (USD 2.1 billion), LNG (USD 400 million), navigation equipment (USD 102 million), turbojets, and gas turbines (USD 442.2 million).

 

In the domain of services, India exported financial, IT, maintenance and repair, travel, transport, and other business services worth USD 3.2 billion to France, while importing services such as other business services, transportation, and insurance, amounting to USD 2.2 billion.

 

Investment-wise, France ranks as the 11th largest investor in India, with a cumulative Foreign Direct Investment (FDI) inflow of USD 10.5 billion from April 2000 to March 2023.

The depth and intensity in bilateral relations doesn’t just happen. It takes time, sustained effort by multiple stakeholders, and more importantly, strong political will for it to become strategically significant. Situations, circumstances, events, and prevailing perceptions, including misperceptions, act as strong influencers either in strengthening it or holding it back from attaining its true potential.

 

A rapidly changing global environment, certainly, can impose a strategic necessity in reinventing bilateral, regional, and global relationships. At the same time, the evolving nature of foreign policy itself constantly reassesses relationships to maximize national interest. In other words, the forging and enhancement of relationships is not solely driven by externally imposed compulsions. Countries discover each other because relationships also have their own bilateral rationale.

 

It is in this context that the dramatic transformation of India-Australia relations, in less than a decade, from persistent suspicions and distrust, occasional animosity, and polite disinterest to one driven by strategic necessity, mutual benefit, and proactive bipartisan political will needs to be seen.

 

Australian Parliamentarian Andrew Charlton, in his recently published book titled Australia’s Pivot to India, characterizes the relationship as one that did not happen overnight but incrementally moved through four distinct phases – acquaintances, friends, family, partners – before it arrived at the current state of play. From what was a tepid, almost moribund, engagement, it has leapfrogged to emerge as one of the most exciting and fastest growing relationships in the Indo-Pacific, spanning multiple and diverse verticals from defence to education to critical technologies to the social sector to trade, to name a few.

 

The willingness of both countries to enter into a comprehensive relationship is by itself spectacular, given how mundane the relationship earlier was. But willingness alone does not move mountains. Years of neglect and entrenched misperceptions leave behind their own baggage. This is particularly evident when we consider sectors outside of government.

 

Consider trade, for instance. The Economic Cooperation and Trade Agreement (ECTA) was signed in April 2022 and entered into force in December of that year. A strong showing in two-way trade that year ($48.4 billion) was particularly heartening and suggested appetite for sustained growth from both sides.

 

However, a literacy gap continues to plague business communities in both countries. Indian business has little knowledge of the Australian market, negligible contacts to enter into business tie-ups with their counterparts, which is holding them back from exploring how they might expand the product basket. Indeed, several of India’s regional business chambers do not even have a dedicated Australia chapter to provide information to their members and facilitate business delegations.

 

This is problematic as it does not allow for a fuller appreciation of consumer demand in Australia, nor indeed of Australian requirements of Sanitary and Phytosanitary Standards. For India’s SME exporters, the target clientele appears to be restricted to the growing Indian diaspora in Australia. This will continue to restrain the volume of India’s exports to Australia.

 

Australian business is similarly handicapped because of their lack of familiarity on how they might do business with India and whether the process is as seamless as doing business with China, where they have been engaged in for several decades, including knowing the language and local customs. It bears mentioning that China is Australia’s largest trading partner and the two-way trade stood at over $271 billion in 2020.

 

It was mistakenly argued in some Australian quarters a few years ago that trade relations with India would replace those with China! At that time credible fears about Beijing’s behaviour, including interference in Australia’s domestic affairs, had resulted in frostiness in their bilateral relationship. The perception that India could ‘substitute’ China in trade relations was misplaced and exaggerated for multiple obvious reasons. The present government in Canberra has taken a more pragmatic approach. Fears with regard to Beijing persist and has resulted in greater vigilance. At the same time, the government has realized the advantage of expanding its trading partners and efforts to improved India-Australia trade, while not sacrificing existing Australia-China trade, would be the driving imperative.

 

The next step is for India and Australia to sign a Comprehensive Economic Cooperation Agreement (CECA). ECTA has established the high level of complementarity and alignment between the two countries. For coal-starved India, continued import of coal for its energy demands would be critical for its developmental aspirations. At the same time, India has a proven track record of its investment in renewables. Collaboration with universities carrying out high-end research in photovoltaics and other areas would help address the deficit in areas of critical interest to India. India’s focus would also be on trade in critical minerals keeping in mind its long-term requirements.

 

Given strong political will on both sides for an early conclusion of CECA negotiations, preparations for the entry of CECA would include taking fuller advantage of ECTA and boosting two-way trade to $100 billion over the next couple of years, if not earlier. This is a credible possibility if industry in both countries were to expand the trade basket, reach out to new consumers, which would only be possible through a better understanding of consumer demand and market potential. Overall, there will be two key signposts which can point in this direction in the coming months:

 

Focused trade reviews by respective Missions and Consulates on ECTA implementation, more discussions with local representatives of Indian and Australian companies on their priorities for CECA, and steps by Missions to further facilitate bilateral commercial relations.

 

The efforts towards greater involvement of non-government stakeholders such as civil society and educational institutions to complement governmental efforts to further promote uptake of the ECTA and foster a positive narrative for the proposed CECA.

 

These factors will be instrumental in ensuring that the initial gains from the ECTA translate into greater ambition on both sides in terms of what a CECA can deliver for their economies.

Hailing the trade ties between India and Nigeria, External Affairs Minister S Jaishankar said that the relationship between the two nations today is of about USD 13-15 billion worth of trade annually.

 

He added that in this trade partnership, India has committed USD 27-30 billion of investment, making Nigeria a premier economic partner in Africa.

 

Addressing the Nigeria-India Business Council (NIBC) in Abuja, Jaishankar said, 'There are different ways of describing this relationship. But to a business audience and to a policy audience, it is the relationship today of about 13 to 15 billion dollars worth of trade annually, where India has committed somewhere between 27 to 30 billion dollars of investment, where Nigeria is our premier economic partner in Africa.'

 

Speaking on the flourishing trade between the countries, the EAM underlined that India, today provides the basis for a more serious interaction.

 

'I was reminding some folks yesterday, that India’s exports in the year that has just been completed was 766 billion dollars. And I’d surely like, and I’m sure you would surely like, a larger part of that share to come to Nigeria. Because today we are a 4 trillion dollar economy, an economy with a range of capabilities and technologies and experiences and practices, which we perhaps did not have in earlier years, and which really today provide the basis for a more serious interaction,' the EAM went on to say.

 

He also underlined that Banking, insurance, credit guarantees, flight connections, trade settlements, are some of the challenges that should be put on the table, and approached honestly.

 

'I think our primary responsibility is to improve the enabling environment, to look at the kind of problems that I’ve been hearing about in the last two days. Banking, insurance, credit guarantees, flight connections, trade settlements. I think these are challenges today that we should put on the table, approach it very honestly, and look to find constructive, practical solutions,' Jaishankar said.

 

'I’m also very pleased today to see my ministerial colleagues from the Nigerian government, because yesterday I had the honour to meet the Minister for the Blue Economy. And I mention this because, in many ways, if we are to give this relationship more weight, substance and practicality, we should get beyond the world of protocol and diplomacy. Not to look at it in a very narrow sense, but really to get down to business and look at different parts of our economy and of our government and of our policy making and see, where is it that we can build the connect,' he said.

 

'So, even though I’m a Foreign Minister, I urge all of you to really look beyond the foreign policy establishment to build the linkages that will really take our relationship to a new level,' the EAM added.

 

EAM Jaishankar, who was on a visit to Nigeria from January 21-23, concluded his diplomatic trip today.

 

'Concluded my Nigeria visit with an address to the Nigeria-India Business Council (NIBC) today. Investment and trade are at the heart of our partnership,' he wrote on X, as he addressed the NIBC Council in Abuja.

 

'Recognise contribution of those driving it and seeking to take our ties to a higher level. Appreciate the presence of the Ministers of Trade, Budget & Economic Planning, Blue Economy and Steel Development of Nigeria and the Governor of Nasarawa,' he said.

 

Notably, India and Nigeria have traditionally enjoyed close and friendly relations.

 

This was EAM’s first visit to Nigeria, which will further consolidate bilateral relations between the two countries.

 

He also visited the Indian High Commission in Abuja on Monday. There, he unveiled a bust of Mahatma Gandhi and planted a sapling on the premises of the High Commission.

 

Prior to this, he also led the Indian delegation at the 19th Summit of the Non-Aligned Movement (NAM), to be held in Kampala, Uganda. He also met several foreign leaders and UN Secretary General Antonio Guterres on the sidelines of the summit. 

The food processing sector is regarded as the growth engine of the agriculture sector in India. It is thus correctly advocated that an efficient food processing sector, consistently growing at double-digit rates, is a must for the agriculture sector to grow at more than 4 per cent and serve the ever-increasing food requirements of the country’s growing population. Food processing is also essential to make the humungous efforts of India’s farmers in the face of many odds worthwhile.

 

It is now well-recognised by all stakeholders – governments, farmers and industry – that the fortunes of agriculture and food processing sectors are intertwined and an integrated approach is needed to address problems of food spoilage and wastage, food security, inflation and dwindling farm incomes. Various government policies of the past half a decade showcase this interdependence of food processing and agriculture.

 

The food production in the country is likely to double in the next decade or so. Yet at present, India accounts for less than 3 per cent of international food trade, and lack of processing facilities has been leading to wastage/value loss of about 35 per cent of the agricultural produce, worth 10 billion USD as per various estimates.

 

It is against this backdrop that a necessity was felt for an entity that would provide the crucial connectivity to bring together farmers, traders, industries and consumers. This need led to the launch of The Mega Food Parks Scheme (MFPS) in 2008-09, which is the flagship programme of the Ministry of Food Processing Industries (MoFPI), Government of India. MFPS is also the most crucial element of the Pradhan Mantri Kisan Sampada Yojana which embodies Prime Minister Narendra Modi’s vision of doubling farmers’ incomes.

 

The Mega Food Parks Scheme

The primary objective of Mega Food Parks is to provide state-of-the-art facilities for food processing along the value chain from the farm to the market. At its launch, the Scheme Guidelines struck all the right chords. They would adopt a cluster-based ‘hub and spoke model’, with due consideration given to backward (to be read as sourcing) and forward (to be read as marketing) linkages and they would help create modern infrastructure near the farm, and provide facilities for transportation, logistics and centralised processing centres (CPC) as well as farm-proximate primary processing centres (PPCs). A grant of up to Rs. 50 crores per project was to be provided by the Ministry of Food Processing Industries and it was envisaged that each Mega Food Park would be completed in 30 months – which, rightly so, proved to be an excessively idealistic target.

 

Like all large infrastructure development projects, things were slow to take off due to a variety of reasons such as time taken in land acquisition and CLU, financial closure, environmental approvals, unfavourable SPV structuring norms in the Scheme Guidelines, and in some cases unviable locations.

 

As a result, by 2015-16, the Scheme was written off by many; but the time of Mega Food Parks was still to come. The ministry too introduced two major initiatives to infuse fresh energy into the MFP Scheme –

 

Setting up a food processing fund under NABARD for providing loans at concessional rates to food parks and units within the food parks

Re-launch of the CEFPPC scheme with a grant-in-aid of up to Rs. 5 crores, with preference for food processing units established inside food parks.

Mega Food Parks Have Arrived

It would not be an understatement to say that the time of Mega Food Parks is now. The data over the last 3-4 years shows that things have gradually changed for the better, with more than 50 per cent of allotted Mega Food Parks having become operational and starting to attain gestation. Some data points given below illustrate the present status (as of April 2023)

Total Mega Food Parks	41
Operational Mega Food Parks	24
Mega Food Parks under various stages of implementation	17
Cumulative Project Cost	Rs. 4635.87 crores
Promoters’ contribution	Rs. 2664.74  crores
MoFPI Grant	Sanctioned Rs.1971.13 crores (Released: Rs. 1465.26 crores)

There is also an accelerated growth of units being established in Mega Food Parks; and out of the 506 units approved by the MoFPI under its CEFPPC (Units) scheme as of January 2024, close to 150 food processing units are inside Mega Food Parks sanctioned by the ministry. Thus, the CEFPPC Scheme has provided the much-needed boost for bringing food processing units to the Mega Food Parks.

 

Role of Mega Food Parks in Transforming Indian Agriculture

The Mega Food Parks have started playing a significant role in giving a boost to the agribusiness sector and will continue to play an even more important role in the next 5-7 years. The examples are now evident and include:

 

Patanjali’s journey to become an FMCG powerhouse started with its Patanjali Mega Food Park in Haridwar. Its food products revenue is going to touch USD 1 billion soon and it sources produce, directly and indirectly, from more than 10 lakh farmers. It has commercialised some seemingly irrelevant products such as buransh juice, helped increase farmer incomes and developed many local entrepreneurs.

Gujarat Agro Infrastructure Mega Food Park has already secured an investment of more than Rs. 400 crores from processors against the ministry’s own goal of 250 crores per Mega Food Park in a tribal-dominated taluk. It is likely to attract a total investment of nearly Rs. 650 crores, with the related preservation and procurement of agricultural produce benefitting a huge number of farmers. Their fully operational storage facilities have supported scores of dairy farmers too, in addition to storage of other agricultural produce.

Himalayan Mega Food Park is helping apple growers in Uttarakhand with its apple juice concentrate facility, and Cremica Food Park is changing the fortunes of tomato farmers in Himachal and surrounding areas with a world-class pulping facility.

 

All operational food parks, including the examples above, are already sourcing a range of raw materials directly and indirectly from a minimum of about 5000-6000 farmers each. They are already contributing in a big way to reducing wastage of agri and horticulture produce, through more than 2.5 lakh MT capacity of modern cold and ambient warehousing that has been created in these projects. These storage facilities also provided logistical support and relief during the Covid lockdown as Mega Food Parks continued to operate and offer services.

 

With exports being the major market for processed foods, state-of-the-art processing infrastructure created at Mega Food Parks by promoters and unit owners is boosting exports of processed foods.

 

Some Mega Food Parks have encouraged and even assisted farmers in their project clusters to experiment and diversify. Many farmers have taken up horticulture for two main reasons – surety of buyback and creation of farm-gate infrastructure such as packhouses and logistics support provided by the Mega Food Parks. It has been seen in various locations that farmer producer organisations (FPOs), being promoted heavily by governments, have found a market for their produce in these mega food parks.

 

Various food parks have been established in the hilly states, tribal and difficult areas. This has not only helped the farmers of these regions become a part of mainstream agriculture but has also fostered entrepreneurship among locals and resulted in the overall economic development of the region.

 

Mega Food Parks are also becoming job work hubs for many prominent Indian and global food brands and helping exports of food products to various parts of the world. Serving such markets and players requires quality and traceability across the entire supply chain. Some Mega Food Parks are actively working with farmers and training them too to ensure both.

 

When all 41 projects are complete and fully operational with their central facilities and food processing units, more than 15 lakh farmers in these project clusters would benefit. It is evident that such support through Mega Food Parks will enthuse many more farmers and FPOs to focus on better and processable produce and food parks are already playing and shall continue to play an important role in moulding the future of India’s agriculture sector.

 

In the post-Covid world, global food supply chains are undergoing major realignments. Given India’s inherent strengths and renewed focus from the government, India can emerge as a major global sourcing hub and also a major consumption market, thus creating a huge opportunity for Indian businesses and startups. Mega Food Parks will no doubt pave the way to transform the agriculture sector and unlock its real potential through processing and value addition.