Nearly 500,000 metric tons of rice from Taiwan and India will arrive beginning this month until February 2024, the Department of Agriculture (DA) said yesterday.

 

This is in preparation for the possible impact of the El Niño phenomenon on palay production.

 

'We received reports that around 100,000 tons of imported rice have already arrived in the country. This is part of the 495,000 MT committed by import permit holders to (Agriculture) Secretary (Francisco) Tiu Laurel,' DA Undersecretary Roger Navarro said in a statement yesterday.

 

Meanwhile, a total of 20,000 bags – equivalent to 1,000 MT – delivered before Christmas Day constituted the first batch of the 40,000 bags of rice donated by Taiwan, Navarro said.

 

Another 75,000 MT will arrive from India starting this week until early January, the DA official said.

 

'The 75,000 MT due in the coming weeks is part of the 295,000 MT of rice India has allocated to the Philippines,' Navarro said.

 

In October, India approved the export of over one million MT to seven countries, with the Philippines getting over 28 percent of the export allocation.

 

'With the arrival of imported rice and the volume harvested by farmers in recent months, the country will have sufficient supply of the national food staple until the next harvest which starts in March,' Navarro noted.

 

These imported rice will be slapped with an import duty of 35 percent, he said.

 

He noted that the country’s daily rice consumption is 36,000 MT per day, or 1.08 million tons monthly.

 

Economic managers, especially the Bangko Sentral ng Pilipinas (BSP), are closely watching the rice supply situation due to its impact on inflation.

 

The BSP has aggressively raised interest rates since last year to tame inflation, which affects the purchasing power of consumers and undermines economic growth.

 

Based on monitoring of the DA, the retail price of local regular milled rice was pegged at P52 per kilo; local well-milled rice, P56 per kilo; local premium rice, P62 per kilo and local special rice, P68 per kilo.

 

Imported well-milled rice was sold at P58 per kilo; imported premium rice, P61 per kilo and imported special rice, P65 per kilo.

 

‘Prices still high’

Rice watch group Bantay Bigas said the extension of low tariffs on commodities, particularly on rice, under Executive Order 50 only shows that these measures did not deliver the goal of lowering prices.

 

'The consumers did not feel the effect of the low tariff but the price of food products continues to rise, especially rice,' Bantay Bigas spokesperson Cathy Estavillo said in Filipino.

 

She said this extension will only serve the interests of importers and traders and will result in billions of forgone government revenues.

 

'Our call remains to strengthen local production through support services and subsidies to farmers, post-harvest facilities and issue an EO to stop the implementation of Republic Act 11203 (Rice Tariffication Law) so that the trading function of the National Food Authority can be immediately restored. The NFA can buy a significant volume of farmers’ produce,' Estavillo said.

 

'[We will also call for the] immediate release of the P12-billion fund from the Rice Competitiveness Enhancement Fund and distribute it to farmers. We call on different sectors and agricultural stakeholders to unite against the re-extension of low tariffs,' she said.

 

Meanwhile, former agriculture secretary Leonardo Montemayor criticized the decision to extend the lower tariffs on rice, corn and pork until the end of 2024, saying that for the last three years of its implementation, hog raisers and farmers suffered from the yearly leeway given to imported agricultural commodities but which did not benefit the consumers and the government.

 

'It has also caused the Bureau of Customs, the government billions of revenue losses,' Montemayor said in a radio interview.

 

He said that if economic managers will solely depend on lower tariffs, the target of affordable food will not happen and that what should be done is strengthen local production if the government wants cheaper agricultural commodities for Filipinos.

 

'Based on our experience in the last three years as the lower tariffs started in the middle of 2021, during the time of (former) president (Rodrigo) Duterte, it failed to bring down the retail prices of rice, corn and pork,' Montemayor said.

 

'Even with tariff of 35 percent or 40 percent for in quota or out quota, it (retail prices of pork) should not exceed P300 but the cheapest imported pork was pegged at P400 and above,' Montemayor noted.

 

'What is the guarantee that the extension of the lower tariffs will benefit the consumers? On the part of the farmers, it affects their production,' he said.

 

Montemayor also backed the imposition of suggested retail price on pork to prevent overpricing in the market.

 

He added that the promise of affordable prices for consumers does not happen, same with rice, based on monitoring of the DA in Metro Manila markets, imported well-milled and regular milled rice were not available as imported premium rice was sold for as high as P60 per kilo and imported special rice, P66 per kilo.

 

At the same time, Montemayor said farmers will be further affected by the lower tariff on imported corn as the prevailing price in the world market was only P14 to P15 per kilo compared to P19 per kilo for locally produced corn.

 

'Even if you impose tariffs, the retail price of imported corn will be P16, P17 (per kilo). It will affect the retail price of corn, especially with lower tariffs,' he noted.

 

For his part, Philippine Pork Producers Federation president Nonon Tambago said the move to extend the lowering of tariff has further affected the confidence of local swine farmers amid the slump in farmgate price as it reached P175 per kilo.

 

'We are deeply disappointed with the decision to extend the lower tariff on pork until Dec. 31, 2024. Over the past three years, multiple executive orders have been issued to lower tariffs, but they have not achieved the goal of making pork more affordable for consumers,' Tambago told The STAR.

 

He noted that despite the decrease in farmgate price, the retail price remains high at P350 per kilo.

 

'Instead of focusing solely on lowering tariffs, it is crucial to address the gap between farmgate and retail prices as part of a long-term solution. It is important for economic managers to consider the real situation faced by thousands of local farmers, rather than consistently favoring a few importers and traders,' Tambago added.

 

Samahang Industriya ng Agrikultura executive director Jayson Cainglet said it was unfortunate that the economic team succeeded in convincing President Marcos to issue EO 50.

 

'Here (in the Philippines), it is the reverse. Local producers are penalized and importers are rewarded and pampered with four straight years of reduced tariffs on rice, pork and corn,' Cainglet said.

The negotiations for the proposed free trade agreement (FTA) between India and Oman are moving at a fast pace and the pact is likely to be signed next month, a senior government official said.

 

Export sectors which could get a boost from the agreement include motor gasoline, iron and steel products, electronics, machinery, textiles, plastics, boneless meat, essential oils, and motor cars.

 

According to a report of think-tank GTRI, these goods at present face a 5 per cent import duty in Oman.

 

About 16.5 per cent of Indian exports to Oman, worth about $ 800 million and goods such as wheat, medicines, basmati rice, tea, coffee and fish that already have duty-free access, will not see additional benefits from the agreement, it added.

 

Currently, over 80 per cent of its goods enter Oman at an average of 5 per cent import duties, the report has said.

 

Oman's import duty ranges from 0 to 100 per cent along with the existence of specific duties. A duty of 100 per cent is applicable on specific meats, wines and tobacco products.

 

Officials of the two countries concluded the second round of talks for the pact, officially dubbed as Comprehensive Economic Partnership Agreement (CEPA) earlier this month in Muscat.

 

'With Oman, there's a very good progress and both sides are very eager to conclude this deal. It may be signed in January 2024,' the official said. India has potential for export of products such as light oils and preparations of petroleum and bituminous minerals, medicaments, parts and accessories for motor vehicles, iron ores and concentrates, ferrous products obtained by direct reduction of iron ore, and aluminium.

 

The negotiations on the text of most of the chapters have been concluded by both sides.

 

Oman is India's third-largest export destination among the Gulf Co-operation Council (GCC) countries. India already has a similar agreement with another GCC member UAE, which came into effect in May 2022.

 

On the imports front, India's merchandise imports from Oman were USD 7.9 billion in 2022-23.

 

Key imports are petroleum products ($ 4.6 billion) and urea $ 1.2 billion). These account for 73 per cent of imports.

 

Other key products are propylene and ethylene polymers, pet coke, gypsum, chemicals, and iron and steel.

 

GTRI's report has stated that Oman's products, particularly in sectors like oil and gas, petrochemicals, and certain types of manufactured goods, will find a more receptive market in India, post-implementation of the trade agreement.

 

On the services side, it added that, in 2022, India's service exports to Oman were worth about $ 2.8 billion, while its imports were $ 0.2 billion.

 

'Oman's population is about 5 million. Oman's higher per capita income ($ 25,060) compared to India's ($ 2,370) could mean a demand for more diversified and possibly higher-value goods and services in Oman, which India could aim to supply,' GTRI Co-Founder Ajay Srivastava has said.

 

The bilateral trade stood at $ 12.39 billion in 2022-23. India's exports have increased from $ 2.25 billion in 2018-19 to $ 4.48 billion in 2022-23. Imports from the Gulf nation were $ 8 billion in the last fiscal.

 

In such agreements, two trading partners either significantly reduce or eliminate customs duties on a maximum number of goods traded between them. They also ease norms to promote trade in services and attract investments.

 

Experts have stated that beyond the immediate economic benefits, the CEPA holds considerable strategic importance for India.

 

It serves as a gateway for India to strengthen its footprint in Middle Eastern economies. This partnership with Oman can act as a catalyst, enhancing India's geopolitical presence and fostering deeper ties with other Middle Eastern countries.

 

Commenting on the proposed pact, international trade expert and Hi-Tech Gears Chairman Deep Kapuria said this would further help India in consolidating its market access not only in Oman but also enable Indian companies to access the wider Middle East region.

 

This government has earlier inked trade agreements with Australia, UAE and Mauritius.

Nagpur oranges may soon consolidate its position in the Gulf nation as local farmers, exporters and Government agencies are working together to push the citrus fruit in the international markets. The agencies have also set an ambitious target of exporting more than 500 metric tonnes of oranges in countries like Bahrain, Kuwait, Qatar, Saudi Arabia, and the United Arab Emirates in the season starting from February 2024. As of now, the exporters are selling 100-200 metric tonnes of oranges per season to these countries. Dr Nagpal Lokhare, Deputy General Manager in Agricultural and Processed Food Products Export Development Authority (APEDA), told The Hitavada on Tuesday that efforts are being put in to sensitise farmers, exporters and others to tap overseas markets. 'We are conducting seminars for farmers and exporters and providing them all kind of possible support. We are also participating in exhibitions, especially in the Gulf countries to promote oranges,' he said highlighting the recently conducted exhibitions in Dubai and Riyadh.

 

Two exporters including Pravin Wankhade of Universe Exports and Saurabh N Yadav of New India Export, took part in the exhibitions. Grown under the golden sun of Vidarbha, Nagpur mandarins boast a unique thin skin, a delightful burst of flavour and a seedless bite. Renowned for their sweetness and juiciness, they’re a prized possession in international markets. In addition to this, APEDA has identified more than 15,000 farmers based in Nagpur and Amravati districts. 'We are providing all kinds of assistance to grow export quality oranges,' Lokhare added. The authorities are creating awareness among the farmers and other stake holders on sorting, grading, and packing to ensure the oranges arrive fresh and tempting. Special refrigerated containers and improved logistics are essential to increase the shelf life of the fruit. It is important to note that India used to export 1,800 to 2,000 metric tonnes of oranges to Bangladesh.

 

However, after the Bangladesh Government hiked import duty on oranges from 5 per cent to 25 per cent, India’s export of the citrus fruit slipped to 200-300 metric tonnes per season. The duty hike made the oranges too costly for the Bangladeshi consumers. APEDA is developing Nagpur district as a cluster for Nagpur oranges as part of the Agriculture Export Policy. The APEDA officer in Mumbai has been nominated as a nodal officer for implementation of AEP and cluster development of Nagpur orange.

The food processing sector plays an important role in increasing farm income and creating off-farm jobs, reducing post-harvest losses in agriculture and allied sector production through on- and off-farm investments in preservation and processing infrastructure. Accordingly, Ministry of Food Processing Industries has undertaken several initiatives to give impetus to development of food processing sector in the country and has made significant achievements in its schemes during FY 2023-24. The notable achievements over past year are as follows:

 

Increase in sectoral assistance through Ministry budget-

Government of India has allocated B.E. of Rs 3287.65 crore to Ministry for development of Food Processing Sector in year 2023-24, which marks an increase of about 73% from Revised Estimate (R.E) of Rs. 1901.59 crore in 2022-23.

 

Quantum jump in sectoral achievements -

The Gross Value Added (GVA) of food processing sector has increased from Rs.1.34 lakh Crore in 2014-15 to Rs 2.08 lakh crore in 2021-22.

The sector has attracted USD 6.185 billion FDI equity inflow during April 2014-March 2023.

The share of processed food exports in agri-exports has increased substantially from 13.7% in 2014-15 to 25.6% in 2022-23.

Food processing sector is one of the largest employment provider in the organised manufacturing sector with 12.22% employment in the total registered/organised sector.

Achievements under the schemes-

(A)Pradhan Mantri Kisan SAMPADA Yojana (PMKSY)

 

PMKSY was approved with an allocation of Rs. 6,000 crore for the period 2016-20 (extended to 2020-21) for 14th FC cycle and has been approved to be continued after restructuring during 15th FC Cycle with allocation of Rs 4600 Crore.

Since Jan 2023, So far, a total of 184 projects have been approved under various component schemes of PMKSY and a total of 110 projects have been completed resulting in processing & preservation capacity of 13.19 Lakh MT. The approved projects, on their completion, are expected to leverage investment of Rs 3360 Crore benefiting about 3.85 lakh farmers and are expected to result in more than 0.62 lakh direct/indirect employment.

In all, so far, a total of 1401 projects have been approved under various component schemes of PMKSY, since their respective dates of launch. Out of these, 832 projects have been completed resulting in processing & preservation capacity of 218.43 Lakh MT. The approved projects, on their completion, are expected to leverage investment of Rs 21217 Crore benefiting about 57 lakh farmers and are expected to result in more than 8.28 lakh direct/indirect employment.

PMKSY has made a significant positive impact in terms of increase in prices of the agricultural produce at farm gate and reduction in its losses. NABCON's evaluation study report on cold chain projects showed that completion of 70% of the approved projects has shown significant improvement in waste reduction up to 70% in case of fisheries and 85% in case of dairy products.

 

 

 (B) Pradhan Mantri Micro Food Processing Industries Upgradation Scheme (PMFME) –

 

Under Atmanirbhar Abhiyaan, the Ministry of Food Processing Industries launched a Centrally Sponsored Scheme named Pradhan Mantri Micro Food Processing Industries in June, 2020 to encourage 'Vocal for Local' in the sector with a total outlay of Rs 10,000 crore in the period of 2020-2025 for this scheme.

This is the first ever Government scheme for Micro Food Processing enterprises and is targeted to benefit 2 lakh enterprises through credit linked subsidy and adopting the approach of One District One Product.

Since Jan 2023, a total of 51,130 loans have been sanctioned under the credit linked subsidy component of the PMFME scheme, which is highest achievement during any calendar year since launch of the scheme. An amount of Rs 440.42 crore has been released as seed capital assistance to 1.35 Lakh Self Help Group (SHG) members. 4 Incubation Centers have been completed and inaugurated during the period providing product development support to grass-root Micro Enterprises.

Since the inception of the scheme, so far, a total of 65,094 loans have been sanctioned under the credit linked subsidy component of the PMFME scheme to individual beneficiaries, Farmer Producer Organizations (FPOs), Self Help Groups (SHGs) and Producer Cooperative Societies. An amount of Rs 771 crore has been released as seed capital assistance to 2.3 Lakh Self Help Group (SHG) members.

76 Incubation Centers have been approved to be set up in ODOP processing lines and allied product lines with an outlay of Rs 205.95 crore.

Production-Linked Incentive Scheme for Food Processing Industries (PLISFPI) –

In order to support creation of global food manufacturing champions commensurate with India’s natural resource endowment and support Indian brands of food products in the international markets, Central Sector Scheme- 'Production Linked Incentive Scheme for Food Processing Industry (PLISFPI)' was approved by Union Cabinet on 31.03.2021 with an outlay of Rs. 10,900 crore.  The Scheme is being implemented over a six-year period from 2021-22 to 2026-27.

The components of the Scheme are-  Incentivising manufacturing of four major food product segments viz. Ready to Cook/ Ready to Eat (RTC/ RTE) foods including Millets based products, Processed Fruits & Vegetables, Marine Products and Mozzarella Cheese (Category-I). The second component relates to production of Innovative/ Organic products of SMEs (Category-II). The third component relates to support for branding and marketing abroad (Category-III) to incentivise emergence of strong Indian brands for in-store Branding, shelf space renting and marketing. From the savings under PLISFPI, a component for Production Linked Incentives Scheme for Millet Based Products (PLISMBP) was also carved out from the scheme to encourage the use of Millets in RTC/RTE products and incentivizing them under the PLI Scheme to promote its production, value addition and sale.

On 10.08.2023, the proposal of the Ministry has been approved for inviting EoI for manufacture of Millet-based products (Millets 2.0) with an outlay of Rs. 1000 Crore arising out of the savings from the other segments.

A total of 176 proposals under different categories of Product Linked Incentive scheme for Food Processing sector (PLISFPI) have been approved so far. The scheme was likely to lead to investment of Rs 7722 Crore, increase in processed food sales turnover worth Rs 1.20 Lakh Crore and generate employment opportunities of 2.50 Lakh. With Incentives of Rs. 584.30 Crore released till date to the supported companies under the scheme, processed food sales turnover of about Rs 2.01 Lakh Crore, investment of Rs 7099 Crore and 2.36 Lakh employment generation has already been achieved through supported projects.

30 companies, including 22 MSMEs, are involved in the promotion of Millet based products under PLISMBP. The scheme envisages the use of a minimum of 15% millet content in the approved food products.

 

 

(4) Activities/Achievements as part of 'International Year of Millets (IYM)-2023)'-

 

Shree Anna has been one of the key focus areas of the Ministry in International Year of Millets.

Ministry has significantly augmented Shree Anna processing & preservation infrastructure through its schemes. 

30 Millet based proposals for Production linked Incentive with an outlay of Rs 800 Crore, which includes proposals from 8 large entities and 22 MSMEs, have been approved under PLISFPI.

 So far, a total of 1825 loan have been sanctioned amounting Rs. 91.08 Crore for individual millet processing units from various states under PMFME scheme.  In addition, Ministry has identified 19 districts with Millet Products as One District One Product (ODOP) under its PMFME scheme and has approved 3 Marketing & Branding proposals for Millet Products. Also, 17 incubation centres have been approved in 10 states having Millet Processing lines.

Ministry has also organized a series of Millet Roadshows/ conferences/exhibitions across 27 districts spread across the country. Two-day Millet Festival has been organized in  districts viz. Mandla (Madhya Pradesh), Bhojpur (Bihar), Vijayanagar (Andhra Pradesh), Agra (Uttar Pradesh), Madhurai (Tamil Nadu), Nuapada (Odisha), Mahabubnagar (Telangana), Jodhpur (Rajasthan), Khunti (Jharkhand), Tirap (Arunachal Pradesh), Almora (Uttarakhand), Palakkad (Kerala), Surat (Gujarat), Patna (Bihar), Ahmedabad (Gujarat), Chandigarh, Raipur (Chhattisgarh), Pune (Maharashtra), Jaipur (Rajasthan), Coimbatore (Tamil Nadu), Mandya (Karnataka), Kolkata (West Bengal), Amritsar (Punjab),  Hyderabad (Telangana), Jammu (Jammu & Kashmir), Port Blair (Andaman & Nicobar)  and Thane (Maharashtra) as part of the celebration of International Millet Year 2023.

(5) Activities/Achievements as part of 'International Year of Millets (IYM)-2023)'-

 

Ministry organized a Global Food Event 'World Food India' (WFI) during 3-5 November, 2023 at Pragati Maidan, New Delhi. The event provided supportive platform for interaction and synergy between producers, food processors, equipment manufacturers, logistics players, cold chain players, technology providers, Start-up & innovators, food retailors etc., and showcased the country as investment destination for Food Processing including possibilities for Shree Anna.

The Event was organized in Ground Floors of Halls Nos 1,2,3,4,5,6 & 14 (measuring 49,174 Sq meter of area) apart from open spaces of about 10,000 sq meter area in Paragti Maidan, New Delhi. Technical Sessions, Ministerial Meetings, Industry Roundtables apart from inaugural and valedictory sessions were held in Bharat Mandapam. The event was the one of the biggest congregation of senior government dignitaries, global investors and business leaders of major global and domestic agri-food companies. Key Components of the Events were - Exhibition, Conferences & Knowledge Sessions, Food Street, Sri Anna based activities, Indian ethnic food products and specific pavilion segments focussed on – (a) Fruits and Vegetables; (b) Dairy & Value-added dairy product; (c) Machinery and Packaging; (d) Ready to Eat/ Ready to Cook & (e) Technology and Innovations etc.

World Food India’ 2023 was inaugurated by Shri Narendra Modi, Hon’ble Prime Minister in the Plenary Hall of Bharat Mandapam on 3rd Nov 2023.  He inaugurated the exhibition in Hall No 14, visited MoFPI pavilion and portions of Technology Pavilion and interacted with select Industry Representatives in the inauguration. Valedictory session of 'World Food India 2023' held on 5th November at Bharat Mandapam was graced by the esteemed presence of the Hon’ble President of India, Smt Droupadi Murmu.

World Food India had extensive participation from stakeholders across the board, including more than 1200 national and international exhibitors, representatives from 90 countries, 91 Global CXOs, 15 overseas ministerial and business delegations and MoU/ Investment promise of above Rs. 33,000 crore. Different activities like Exhibitions, exclusive pavilions on Technology, Machinery, Sub-sectors etc, B2B, B2G meetings, 47 conferences/seminars were key attractions of the event. Ministry also organized global Reverse Buyer Seller Meet in association with D/o Commerce & its associated bodies i.e. APEDA, MPEDA/Commodity Boards as a part of the Event.

 

The UAE has initiated the process of channelising its long-promised $2-billion investments into food parks in India, starting with Gujarat, after the two countries sorted out concerns on curbs imposed by the Essential Commodities Act, sources have said.

 

The investments are being made as part of the four nation I2U2 (India-Israel-UAE-USA) initiative to develop a series of integrated food parks across India to enhance food security in the Middle East and South Asia.

 

'India has agreed to waive ECA curbs for a specified volume of commodities (coming under the ambit of the Act) that would be proposed to be processed and exported from the parks by the investors. The UAE will specify the quantities at a later stage of development,' a source tracking the matter told businessline.

 

Park in Kandla

The first food park is likely to be set up on land near Kandla where the investors would get into contract farming arrangements with locals. 'The UAE is in talks with the State government for various permissions and work is expected to start soon. The investments will be made in tranches,' the source added. 

 

The UAE had first promised in 2018 to invest in food parks in India which later got dovetailed into the I2U2 initiative announced at the Leaders’ Summit in July 2022. It was virtually attended by Prime Minister Narendra Modi, US President Joe Biden, Israeli Prime Minister (former) Yair Lapid and UAE President Sheikh Mohamed bin Zayed Al Nahyan.

 

These food parks would incorporate state-of-the-art climate-smart technologies to reduce food waste and spoilage, conserve fresh water, and employ renewable energy sources, per the joint statement signed by the leaders at the Summit.

 

Shortlisted crops

The UAE has been worried about the ECA as three of the shortlisted crops to be processed in the food parks – onions, rice and bananas – are covered under the Act. Since the ECA allows stock-holding limits to be imposed by the government if a certain commodity is in short supply, it could affect business prospects in the food parks.

 

'Now that the Centre has agreed that ECA would not apply on commodities processed in the food parks up to a certain quantity requested by the UAE, the problem has been sorted out,' the source said.

External Affairs Minister S Jaishankar and Russian Deputy Prime Minister, who is also the Minister of Industry and Trade, Denis Manturov, met in Moscow on Tuesday to discuss expanding economic partnership, including smoothening mechanism for trade in national currencies and increasing Indian exports and investments in Russia.

 

On the occasion, New Delhi and Moscow signed a pact for additional units at the Kudankulam Nuclear Power Project besides pacts for and in areas of medicines, pharmaceutical substances and medical devices.

 

Jaishankar met Manturov on day two of his five-day visit to Russia on the eve of his meeting with his Russian counterpart Sergey Lavrov. Considerable focus was given to connectivity initiatives and India's presence in the Russian Far East at the Manturov-Jaishankar meet.

 

The two ministers held wide-ranging discussions on measures to boost business and trade partnership including increasing Indian investments in Russia to meet growing demands across sectors in the backdrop of sanctions, it has been learnt. This was the second meeting between Manturov and Jaishankar this year. The Russian DPM had travelled to India earlier this year.

 

On Tuesday, the two ministers also explored the early conclusion of FTA between India and Eurasian Economic Union (EAEU). Iran recently concluded a full FTA with the EAEU.

 

Taking to X Jaishankar wrote, 'A comprehensive and productive meeting with Deputy Prime Minister Denis Manturov of Russia on our bilateral economic cooperation. Noted the significant progress in trade, finance, connectivity, energy, civil aviation and nuclear domains.'

 

'Appreciated the greater focus on exploring new opportunities. Discussed making our cooperation more balanced and sustainable in different dimensions. Finalized the program of cooperation on the Russian Far East. Expect to hold an early meeting of EaEU-India FTA negotiators. Will jointly organize connectivity events across land and maritime corridors,' Jaishankar wrote on X announcing outcomes of the meeting.

 

India and Russia trade has reached unprecedented levels over the past two years. Since the start of the Ukraine conflict, Rupee-Ruble trade has faced obstacles due to accumulation of Indian currency by the Russian side in India. While Russia has started investing in India from the accumulated rupee, it is seeking an increase in Indian investments across sectors.

 

However, the process has smoothened to an extent over the last few months. Attempts are also being made to smoothen the payment transfer mechanism which was impacted by sanctions after the Russian invasion of Ukraine in 2022. Russia is seeking India’s green signal in implementing the Rupay-Mir card and a link between Russian online financial transfer system and India’s system.

 

Russian President Vladimir Putin recently pitched for use of more national currencies in India-Russia bilateral trade and called for ensuring smoother financial transactions between the two countries without any obstacles.

 

Putin had also called for increasing mutual investments in pharmacy, manufacturing and industry, and referred to the sharp increase in India-Russia bilateral trade since 2022 and hailed India’s energy purchases from Russia despite external pressure.

 

Meanwhile, announcing Jaishankar-Lavrov meeting in Moscow on Wednesday, the Russian foreign ministry stated that the foreign ministers of Russia and India will focus on current and prospective areas of bilateral cooperation, as well as discuss the schedule of upcoming contacts. The main emphasis will be on assisting in the further development of sustainable transport and logistics, and banking and financial chains, as well as expanding the use of national currencies in mutual settlements. Issues related to cooperation in high-tech areas, including space and nuclear, and joint projects for the development of hydrocarbons in the Arctic shelf and the Russian Far East, are also planned to be addressed.

 

They will discuss the priorities of Russia’s chairmanship in BRICS in the coming year. An in-depth exchange of views is expected on the formation of a just security architecture in the Asia-Pacific region, the situations in Ukraine and Afghanistan, as well as the Palestinian-Israeli confrontation, according to the Russian foreign ministry statement.

 

Moscow and New Delhi are committed to multipolarity as an essential factor in maintaining balance in the world order that has emerged over the past decades. Russia supports Global South countries in defending political and economic sovereignty, the statement affirmed.

With successfully exporting a trial shipment of fresh bananas to the Netherlands through sea route, India is now aiming to increase exports of this fruit to $1 billion in the next five years, an official said.

 

At present, exports of most of the fruits from India are happening by air route because of lower volumes and different ripening periods.

 

To increase the volumes, India is developing sea protocols for fresh fruits and vegetables like bananas, mangoes, pomegranates and jackfruit to promote their exports through ocean routes.

 

The protocol includes understanding voyage time, scientifically understanding the ripening of these commodities, harvesting at a particular time and training of farmers. These protocols will be different for different fruits and vegetables.

 

The Agricultural and Processed Food Products Export Development Authority (APEDA), along with other stakeholders, has developed these protocols for bananas. APEDA is an arm of the Commerce Ministry.

 

'With the successful trial shipment, India aims to export bananas worth over USD one billion in the next five years, opening doors to a diversified market portfolio through sea route,' the official said.

 

The trial shipment reached Rotterdam, Netherlands on December 5. The consignment was shipped from Baramati, Maharashtra.

 

India's banana export destinations extend beyond the Middle East, with potential opportunities in major global players like the U.S., Russia, Japan, Germany, China, the Netherlands, the UK, and France, the official added.

 

Despite being the world's largest banana producer, India's export share is currently just one per cent in the global market, even though the country accounts for 26.45 per cent of the world's banana production at 35.36 million metric tonnes.

 

In 2022-23, India exported bananas worth $176 million, equivalent to 0.36 MMT.

 

The main banana producing states include Andhra Pradesh, Maharashtra, Karnataka, Tamil Nadu, and Uttar Pradesh.

 

Assistant Professor and expert on Agri Economics Chirala Shankar Rao said that huge export potential for bananas is there from Andhra Pradesh.

 

APEDA's continuous efforts, including B2B exhibitions and the development of sea protocols for other fruits, highlight a proactive approach to boost India's agricultural exports, the official added.

In the UN's Food and Agriculture Organisation (FAO)'s recently published World Food and Agriculture Annual Statistical Booklet 2023, Bangladesh produced around 93.3 million tonnes of agricultural produce in 2021. 

 

China ranks first in food imports, while the Philippines comes up second.

 

In the same year, the country imported around 12.5 million tonnes of food products from the global market. The highest food import expenditure is still made on wheat, edible oil and milk powder.

 

Indicating that the cost of import-dependent food products in Bangladesh is high, FAO stated that the per capita consumption of edible oil, meat, milk and such nutritious food is the lowest. 

 

However, the per capita consumption of food produced in the country, like rice, vegetable, fish and fruit, is good. In this category, the people of Bangladesh are ahead in calorie consumption, the report said.

 

Commenting on the data, Agriculture Minister Abdur Razzak told the media, "We have taken the initiative to increase the production of import-dependent food products. Production of edible oil, onions and lentils is increasing as a result of innovating new varieties and providing incentives to the farmers. We hope these agricultural products will curb Bangladesh's dependence on imported agricultural products."

 

The FAO report, however, highlighted that Bangladesh has fallen behind in food exports.

 

The top five countries in food exports are, in order, US, UK, Germany, China and France. Bangladesh is near the bottom.

 

The country ranks third in rice production only among the six main food products of the world. It does not rank among the top five countries in the production of wheat, corn, sugar, edible oil and potatoes. 

 

In the past years Bangladesh imported the first four products. It was not necessary to import potatoes. In fact, Bangladesh would export potatoes. With the price of potatoes suddenly shooting up this year, the country has now entered the list of potato importing countries.

 

The FAO report further said Bangladesh's dependence on food import from the global market is increasing. 

 

In 2010, Bangladesh imported 9.3 per cent of its total food demand, and in 2022 that went up to 11.2 per cent. In that span of time, Bangladesh's imports of rice, wheat and edible oil have been rising. But due to the dollar crisis, hardly any rice was imported this year. Wheat imports also fell by 30 per cent from the normal volume.

 

The report highlighted the per capita consumption of calories of all countries. Globally on average, each person consumes 2,978 calories per day. In Asia that average is 2,931 calories. 

 

In Bangladesh the per capita calorie consumption is 2,614 calories. Of the total calories, 1,288 calories is from rice and wheat or other food grain. Then comes edible oil with 203 calories, sugar with 83 calories, fruit 94 calories and potato 175 calories. 

 

People in Bangladesh get only 20 calories from meat, 55 calories from milk and eggs, 40 calories from soft drinks and 52 calories from fish.

 

According to FAO, Bangladesh ranks among the top ten countries in the world in the production of 22 agricultural products. 

 

These include rice, masur dal (lentils), potato, onions, tea and such products as well as various fruits. Bangladesh entered the top ranking lost over the last decade in the production of certain vegetables like pumpkin, cauliflower and such.

The California walnuts shipped from the US to India have seen a sharp uptick with imports more than doubling from September to November against the same period last year. This comes after New Delhi removed its retaliatory customs tariffs on the key dry fruit.

 

Two days ahead of US President Joe Biden’s visit to New Delhi to attend the G20 Summit on September 9-10, India dropped additional customs duties on about half a dozen US goods that were imposed in 2019 in response to America raising tariffs on certain steel and aluminum products coming from India.

 

ICRA has maintained its revenue growth expectations at ~8-10% for the domestic poultry industryin FY2024. This will be driven by significantvolume expansion andimproving share of organised players, said ICRA in a note.

 

'While realisations were strong in H1 FY2023, they started tapering thereafter due to excess supply. Subsequently, the pick-up in demand in the current fiscal resulted in improvement in average realisations to ~Rs. 107/kg in H1 FY2024 compared to ~Rs.101/kg in FY2023 (Rs.96.5/kg in H2 FY2023). The festive season and cold weather should support demand and realisations in the balance part of FY2024,' said ICRA.

 

Sheetal Sharad, Vice President and Sector Head, ICRA Ltdsaid: 'While realisations improved in H1 FY2024 following controlled supply and healthy demand, players’ earnings were further supported by softened feed costs. Maize (which comprises 60-65% of the feed cost) prices declined by ~9% over H1 FY2023 and those for soyabean (comprising ~30-35% of feed cost) reduced by~21% over H1 FY2023. While the raw material pricing has been favourable so far, substantial contraction in soyabean harvest during the kharif season and delayed sowing of maize raise concerns on the potential spike in feed costs, which is likely to exert pressure on the margins of poultry companies.'

 

There have been limited occurrences of avian influenza or bird flu across the country in the current fiscal. Localised incidences of bird flu were reported in Kerala and Jharkhand in Q4 FY2023 and Q1 FY2024, which did not spread further. Any major local outbreaks may have temporary effects on demand and realisations in the affected and nearby regions. Since winters are prone to disease outbreaks, the upcoming months will remain critical.

 

In October 2023, the World Organisation for Animal Health (WOAH) approved India’s self-declaration of freedom from Highly Pathogenic Avian Influenza (HPAI), or the bird flu, in specific approved farms in Maharashtra, Tamil Nadu, Uttar Pradesh and Chhattisgarh. 'This development is expected to provide new opportunities for Indian poultry companies in the global market in the medium to long term. In September 2023, India and the US jointly announced resolution of the long-standing poultry dispute pertaining to allowing US poultry products in the Indian market. This could open the Indian markets to US poultry products, thus increasing the competitive intensity and exerting pressure on realisations,' said ICRA.

 

'The industry credit profile remains vulnerable to the inherent volatility in earnings. Over the medium to long term, we expect the domestic demand in India to be favourable, supported by a rising urban population, changing eating habits and growing penetration of quick-service restaurants. To support the transition to higher margin value-added products, ICRA expects poultry companies to invest in capacity additions towards feed mills as well as move towards forward integration into meat processing plants.The increased working capital requirements for feedstock amid expected rise in input costs, could keep debt at high levels,'Sharad added.