A roundtable meeting was held yesterday here under the chairpersonship of the Secretary, Department of Animal Husbandry and Dairying, Ms.  Alka Upadhaya. This strategic gathering brought together key stakeholders, including leading companies, state governments, and industry associations, to deliberate on the 'Export of Indian Poultry Products: Challenges and Strategies to Strengthen the Poultry Ecosystem.'

 

In the meeting Ms.  Alka Upadhaya highlighted that the Indian poultry sector, now an integral part of agriculture, has played a crucial role in meeting protein and nutritional needs. While the production of crops has been rising at a rate of 1.5 to 2 percent per annum, that of eggs and broilers has been rising at a rate of 8 to 10 percent per annum. Over the past two decades, it has evolved into a mega-industry, positioning India as a major global producer of eggs and broiler meat.

 

Ms.  Alka Upadhaya informed that the Department of Animal Husbandry & Dairying has been taking various initiatives to boost the export. The Department has recently submitted a self-declaration of freedom from High Pathogenicity Avian Influenza. To promote export the Department has recognized 33 poultry compartments as free from Avian Influenza. The Department based on the validity has been notified 26 compartments to the World Organisation for Animal Health (WOAH). On October 13, 2023, the self-declaration was approved by WOAH. Further, the Department took initiatives to resolve the issue of feed shortage in the past years. Also the Department took steps to counter the misleading information which spreaded across the country during the COVID time against the consumption of poultry products.

 

Ms.  Alka Upadhaya strongly emphasised on the promotion of poultry exports, strengthening the Indian poultry sector, improving the ease of doing business, addressing challenges in poultry product exports, and strategizing the integration of units in the informal sector and further cementing poultry sectors position on the world stage. She also shared insights on Department proactive approach to mitigate the risks associated with HPAI by adopting the concept of poultry compartmentalization to facilitate the international trade of poultry and poultry-related products.

 

In the fiscal year 2022-23, India made significant strides in the global market, exporting a notable 664,753.46 metric tons of poultry products, with a total worth of Rs. 1,081.62 crores (134.04 Million USD) to over 57 countries. According to a recent market intelligence study, the Indian poultry market achieved a remarkable valuation of USD 30.46 billion in 2023 with a CAGR of 8.1% from 2024-2032.

 

The roundtable meeting served as a platform for dynamic exchanges, encouraging collaborative efforts to address current challenges and formulate robust strategies for the sustainable growth of the Indian Poultry sector. In the meeting the poultry sector representatives, exporters discussed various issues related to poultry export.

 

About the Department of Animal Husbandry and Dairying:

 

The Department of Animal Husbandry and Dairying is dedicated to promoting animal welfare, ensuring sustainable livestock development, and fostering a conducive environment for the dairy and meat sectors in India.

 

About Invest India:

 

Invest India is the national investment promotion and facilitation agency, playing a crucial role in catalyzing investment, fostering innovation, and promoting ease of doing business in India.

 

Issues about visas, promoting agri trade and resumption of benefits under the American generalised system of preferences (GSP) are expected to figure in the meeting of India-US Trade Policy Forum (TPF) in January here, an official said. US Trade Representative Katherine Tai will be here for a meeting with Commerce and Industry Minister Piyush Goyal.

 

'Both sides will discuss ways to increase trade and investments between the two countries during the two-day meeting from January 13, 2024. It will be the 14th ministerial-level meeting of the India-US TPF,' the official said.

 

The last meeting was held in Washington in January 2023. India in that meeting highlighted the delay in the issuance of business visas to people from India.

 

New Delhi is also keen on restoration of its beneficiary status under the US GSP programme.

 

The previous Trump administration in the US revoked the Generalized System of Preferences (GSP) from India in 2019. The GSP allows eligible developing countries to export duty-free goods to the US.

 

About 1,900 Indian products from sectors such as chemicals and engineering were getting duty-free access to the US market under the GSP, introduced in 1976.

 

Both the countries in the last TPF meet had noted that the movement of professionals and skilled workers and business travellers between the countries contributes to enhancing bilateral economic and technological partnership, the official added.

 

The official said that the proposed social security totalisation agreement may also figure in the meeting.

 

Under a totalisation agreement, an expatriate in either country need not contribute to the social security schemes of the host country. It would benefit a number of Indians, particularly from the IT sector who are working in America and paying social security but are unable to get any benefit out of it.

 

In the 13th TPF meeting, the two countries launched a new working group on 'resilient trade' to deepen bilateral dialogue on a range of issues that can enhance the resiliency and sustainability of the trade relationship including trade facilitation.

 

TPF is a platform to resolve trade and investment issues between the two countries. It has five focus groups -- Agriculture, Investment, Innovation and Creativity (intellectual property rights), Services and Tariff and Non-Tariff Barriers.

 

The US is the largest trading partner of India. America accounts for about 20 per cent of India's total exports in goods and is a key market for services sectors like IT.

 

The bilateral trade between the countries has increased to USD 129.4 billion in 2022-23 from USD 120 billion in 2021-22. India received USD 6 billion in foreign direct investment from the US in 2022-23.

 

India's agri export basket is dependent on just five commodities including rice and sugar and this makes the sector vulnerable to fluctuations in global prices and demand, a report by economic think tank GTRI said on Monday.

The Global Trade Research Initiative (GTRI) said these five products -- basmati rice, non-basmati rice, sugar, spices, and oil meals -- account for 51.5 per cent of India's total agriculture exports.

 

Furthermore, India grapples with various domestic challenges including infrastructural deficits, quality control issues, and non-tariff barriers, all of which impede the growth and competitiveness of its agricultural sector, it said.

'This makes them (agri exports) vulnerable to fluctuations in global prices and demand,' it said, adding these commodities also face frequent export bans in India.

At present export of non-basmati rice is currently banned from India and India is also fighting at the WTO (World Trade Organisation) to protect subsidies to rice and wheat under a public stock holding programme.

Besides, certain WTO member countries have taken India to disputes on sugar for providing subsidies to farmers. 'All this makes India's top exports vulnerable and uncertain,' it added.

To deal with the issue, the think tank has suggested the government to focus on areas like modern infrastructure for the sector.

The report said China with higher rice productivity does not encourage export of rice as every kg of rice products can consume up to 80 litres of water.

It also said that in 2023, India's agricultural trade landscape presents a challenging scenario.

With agriculture exports and imports projected to reach USD 43.3 billion and USD 33 billion, respectively, the sector is experiencing a significant downturn compared to the previous year, it added.

'Exports will decline by 7.2 per cent and imports by 10.1 per cent in 2023 over 2022. India's agriculture exports will be 10.1 per cent of India's merchandise exports.

 

'This decline is exacerbated by the concentration of exports in a few products like rice and sugar, making the market susceptible to global price fluctuations and policy constraints, such as export bans and WTO disputes,' it added.

However, it said that India is learning from global developments and implementing innovative initiatives like farm-to-fork and traceability systems across various agricultural products to enhance quality, safety, and market accessibility.

'Indian agriculture faces significant challenges, including a heavy reliance on rice and sugar, which makes it vulnerable to global market fluctuations and domestic policy changes and unorganised sector activity,' GTRI Co-Founder Ajay Srivastava said.

He suggested a rethink on the sector, as export earnings do not justify input or environmental costs in most cases.

The sector is hindered by inadequate cold chain infrastructure and inefficient logistics, leading to spoilage and export competitiveness issues, Srivastava said, adding quality and traceability inconsistencies, along with high non-tariff barriers in international markets, further impede export potential.

'At the policy level, India's large public stockholding for food security is a contentious issue at the WTO, with ongoing negotiations adding to the uncertainty.

'These challenges, compounded by global agricultural trends and the dominance of a few large firms in the international grain trade, highlight the need for strategic improvements in infrastructure, quality control, and policy adaptation to enhance India's agricultural sector's global competitiveness,' the report said.

The three primary categories for exports are - basic agriculture products, processed agriculture products, and other products.

According to the GTRI's forecast, basic agriculture products will see a decrease in export value from USD 24.8 billion in 2022 to USD 22.3 billion in 2023, marking a 10 per cent decline. This category constituted a significant 51.5 per cent share of India's total agricultural exports.

Processed agricultural product exports may dip from USD 16.3 billion last year to USD 15.7 billion in 2023. The sector accounts for 36.3 per cent of the total exports.

It added that other product categories can register a dip of 5.6 per cent to USD 5.3 billion in 2023 from USD 5.6 billion in 2022. It accounts for 12.2 per cent of total exports.

Non-basmati rice exports have dipped by 12.2 per cent to USD 5.51 billion so far this year (2023). However, basmati rice exports rose by 17.7 per cent to USD 5.3 billion this calendar year.

Sugar exports dipped by 32.4 per cent to about USD 4 billion so far this calendar year. Spices and oil meal exports have increased by 8.5 per cent and 48.6 per cent to USD 3.72 billion and USD 1.,83 billion during the period under consideration.

The other agri products which India exports include coffee, castor oil, fresh fruits, tobacco, processed fruits and juices, groundnut, fresh vegetables, herbal goods, meat, silk, wool and cotton, dairy, and live animals.

As the Indian government has announced to provide 95,000 tonnes of rice to Nepal on quota basis after imposing a ban on the export of non-basmati rice, the Nepal government has asked the private importers to coordinate with the Indian supplier.

 

All Nepali companies should import rice from the state-owned National Cooperative Exports of India.

 

On October 18, the Indian government permitted the export of 95,000 tonnes of non-basmati white rice to Nepal following a ban on July 20.

 

On Sunday, the Ministry of Industry, Commerce and Supplies published a notice requesting the importers to send their details to the Indian state-owned supplier to import rice.

 

As per the notice, each Nepali private-sector importer firm will be allowed to bring in up to 5,000 tonnes of rice on a first-come, first-served basis.

 

'We have already requested the Indian government to provide 5,000 tonnes of rice to each Nepali private firm or company. The private sector can directly contact the National Cooperative Export of India and import rice by reaching an agreement on price and quality between the buyer and seller,' said Ram Chandra Tiwari, joint secretary of the Ministry of Industry, Commerce and Supplies.

 

'To prevent cartelling, we have set a quota of up to 5,000 tonnes for each private firm or company,' said Tiwari.

 

Out of the 95,000 tonnes, 30,000 tonnes will be imported by government corporations and the remaining amount will be imported by private-sector suppliers, Tiwari said.

 

India imposed a ban on the export of non-basmati rice on July 20 India to keep its food reserve intact amid the threat of El Niño disruptions.

 

On August 25, a month after imposing an export ban on non-basmati rice, India slapped a 20 percent export duty on parboiled rice.

 

Following the ban, Nepal’s Ministry of Industry, Commerce and Supplies in August first week, formally requested export quotas from the Indian government, seeking 1 million tonnes of paddy and 100,000 tonnes of rice.

 

Nepal requires 4 million tonnes of rice annually to feed its population, and the shortfall is made up through imports from India. Nepal has been importing rice and paddy from India in large quantities for the past decade.

 

Nepal is heavily dependent on imported food, mostly from India.

 

In the 2021-22 Indian fiscal year, which starts on April 1 and ends on March 31, Nepal imported 1.4 million tonnes of rice—1.38 million tonnes of non-basmati and 19,000 tonnes of basmati rice—from India, the highest amount on record, according to an Indian government report.

 

In terms of value, rice imports came to $473.43 million or just over Rs60 billion.

 

Imports of basmati and non-basmati rice dropped sharply to 812,028 tonnes in 2022-23 after India strangled exports. The total value of the imports was $283.94 million or Rs37.48 billion.

 

The price of rice rose instantly in Nepal after India announced an export ban, though traders say that prices have started to decrease to some extent.

 

Despite having adequate inventory, traders increased prices under the pretext of the ban, analysts said.

 

Within a week of the rice ban by India, prices in Nepal of all types of rice increased by Rs200 to Rs250 per 20-kg or 25-kg bag.

 

India has placed controls on sugar, wheat and rice shipments and currently onion as well.

 

India, the world's largest rice exporter, said it was imposing a ban on the export of non-basmati white rice to keep its food reserve intact amid the threat of El Niño disruptions.

 

India accounts for more than 40 percent of the world’s rice exports, and low inventories with other exporters mean any cut in shipments could inflate food prices already driven up by Russia's invasion of Ukraine last year and erratic weather.

 

According to Indian media reports, rice smuggling from India to Nepal has surged to alarming levels since the southern neighbour banned exports of the staple grain.

 

According to the reports, villagers along the India-Nepal border in Maharajganj, a town in the Indian state of Uttar Pradesh, are mostly involved in smuggling rice into Nepal.

 

In September 2022, India had banned exports of broken rice and imposed a 20 percent duty on exports of various grades of rice as it sought to boost domestic supplies and calm local prices after a below-average monsoon rainfall curtailed planting.

India’s oilmeal exports will likely top 4.5 million tonnes (mt) with rapeseed meal accounting for 2.5 mt and soyabean meal 1.5 mt during the current fiscal. Exports are set to surpass 4.34 mt last fiscal despite a ban on shipments of deoiled rice bran, the Solvent Extractors Association of India (SEA) has said. 'Cumulative exports of all oilmeals till November (in the current fiscal) have increased by around 21 per cent over the preceding period and crossed 28 lakh tonnes,' said SEA President Ajay Jhunjhunwala.

 

Soyameal shipments have turned buoyant as India has gained a competitive edge, while there is short-supply from Argentina. 'Also exports of rapeseed meal was a record at 2.30 mt last fiscal and the trend is continuing in the current year with exports of around 1.6 mt till November. It will likely cross last year’s record export,' he said. 

 

Exports of castormeal are on track and are a notch above last year’s level.   

 

Rabi sowing up

Jhunjhunwala said sowing of oilseeds in the current rabi season at 99.11 lakh hectares (lh) has exceeded the five-year average of 84.45 lh and 98.1 lh last year. Rapeseed/mustard leads the pack with a coverage of 92.45 lh exceeding the 5-year average area of 73 lh and 90.16 lh a year ago.

 

The acreage has increased mainly in Uttar Pradesh, the SEA president said, adding the area under groundnut, sunflower, safflower and sesamum are down a tad currently, though. 

 

The agro-climatic conditions during the rabi season are expected to be close to normal, indicating a promising harvest of rabi oilseed crop, he said.

 

Referring to the ban on exports of deoiled rice bran, Jhunjhunwala said the Centre extended the ban despite the industry’s appeal that not permitting exports will not reduce the price of dairy products. Solvent extraction units will lose their export market that has been developed painstakingly, he said.

 

Refined oils duty difference

The SEA president said with the duty difference between crude and refined edible oils being only 8.25 per cent, imports of refined, bleached and deodorised (RBD) palmolein in November doubled compared with October. 'This is to the detriment of our processing industry and of benefit to the  exporting countries such as Indonesia and Malaysia. The association has urged the government to increase the import duty on refined edible oils to at least 15 per cent higher than that on crude edible oil to enable our domestic industry to have a level playing  field,' he said.  

India has strongly objected to efforts of certain countries to push a proposal on investment facilitation at the WTO, saying the agenda falls outside the mandate of the global trade body and cannot be deliberated in formal meetings. According to the statement of the Indian delegation in a meeting of the General Council of the World Trade Organisation (WTO), held during December 13-15, negotiation on investment does not belong to the WTO.

 

'I would like to reiterate that Investment Facilitation for Development (IFD), which supposedly facilitated investment, did not pertain to multilateral trade relations. Investment per se is not trade,' the statement said.

 

It added that investment covers a wide range of assets or enterprises subject to a separate universe of obligations.

 

'The negative mandate did not allow the Members, desirous of IFD, to pursue it in a multilateral forum upon a consensus,' the statement said.

 

It added that certain members began an informal process that did not have any legal sanctity, and now, at the end of their informal process, they are back to consensus seeking on their outcome of an informal process the foundation of which is devoid of consensus.

 

'What could be more ironic in WTO than this, i.e., violating the treaty-embedded right of members to start consensus-based negotiations on mandated issues, and then at the end of such unrecognized and unlawful process, seeking consensus from those very members whose treaty-embedded right was intentionally vitiated in the first instance,' it added.

 

The General Council is the highest decision-making body of the WTO after the Ministerial Conference (MC), which meets once in two years.

 

The MC 13 meeting is scheduled from 26 to 29 February 2024 in Abu Dhabi, United Arab Emirates.

 

Member countries who are pushing for the proposal include Chile and Korea.

 

Earlier also, India raised its serious concerns over bringing issues related to investment facilitation within the ambit of WTO saying that these are bilateral matters and can not be decided at multi-lateral forums.

 

The statement said that it is a matter of 'serious concern' that the proponents of IFD are trying to force their interests into the rule-based WTO multilateral system in violation of rules.

 

As far as the investment aspects of trade are concerned, the agreement on TRIMS (Trade-Related Investment Measures) and the GATS (General Agreement on Trade in Services) already deal with trade-related investment aspects in goods and services, respectively.

 

The TRIMS deals with certain trade-related investment measures that can restrict and distort trade.

 

The GATS dealt with the supply of services through commercial presence in the territory of any other member, which was related to trade in services and not purely investment.

 

India added that if some countries want to negotiate the subject, they should do it outside the formal structure of the WTO.

 

It said that the document placed by those countries is an outcome of an 'illegal' process nurtured in a rule-based multilateral system, and 'therefore, we would not like it to be placed before the ministers'.

 

Trade ministers of the 164 countries would gather in Abu Dhabi for MC 13.

 

'Negotiation on investment does not belong to WTO. India's concern emanates from the fact that proponents of IFD, a joint statement initiative (JSI) process, should not be attempting to bring a non-mandated, non-multilateral issue to the formal process in the WTO in violation of the WTO framework and fundamental rule of consensus-based decision-making for starting a negotiation,' the statement said.

 

There has not been any Ministerial mandate for starting negotiations on investment-related matters, it added.

The export of Indian-made spirits is poised to surge beyond the USD 1 billion mark in the coming years, driven by a robust demand for these beverages in the global market. Rajesh Agrawal, Additional Secretary at the Ministry of Commerce, highlighted this projection on Thursday, emphasizing the accelerating popularity of Indian-made spirits worldwide.

 

In 2022-23, the export value of Indian spirits reached USD 325 million, and with the escalating global demand, experts anticipate this figure to surpass USD 1 billion in the near future.

 

Speaking on the subject, Agrawal stated, 'Global market of alcoholic beverages stands today at USD 130 billion and Indian exports of these products was USD 325 million in 2022-23. As the global demand for Indian spirits is growing, we expect that in a few years, exports of Indian spirits will cross USD 1 billion. In our negotiations for a free trade agreement with the countries we are trying to get duty concessions for Indian spirits'.

 

Negotiations for free trade agreements (FTAs) play a crucial role in facilitating the growth of Indian spirits exports.

 

Agrawal noted, 'The world trade in the segment is dominated by scotch which is around USD 13 billion. The condition for scotch is that it must be matured for a period of three years and in our FTA negotiations it has not been resolved yet. As per the Indian alcohol and beverage industry Indian climate is warm and here whiskey matured in one year. That is the issue we are trying to negotiate and resolve in our FTAs.

 

'Agrawal said, 'Law in many countries prohibits the one-year maturity period but some countries have their own standards. Recently Confederation of India Alcoholic Beverage Companies (CIABC) has sought better market access for Indian products in the EU. CIABC, the apex body of Indian alcoholic beverage manufacturers, has demanded that the EU should remove the non-tariff barriers which prevent the vast majority of Indian products being sold in the EU'.

 

'CIABC, hitch has been constantly raising its concerns with the government on the matter, has also reiterated that the trade deal with the EU on alcoholic beverages should be no different from the UK, negotiations for which are currently underway. In discussions about the global alcohol and beverage industry, Agrawal highlighted the dominance of Scotch, which commands a market worth around USD 13 billion', said Agrawal.

 

Recently, the Confederation of Indian Alcoholic Beverage Companies (CIABC) has been actively advocating for improved market access for Indian products in the European Union (EU).

 

CIABC, representing Indian alcoholic beverage manufacturers, has urged the EU to eliminate non-tariff barriers hindering the entry of most Indian products into the EU market.

 

CIABC has emphasized that the trade deal with the EU on alcoholic beverages should mirror the one negotiated with the UK.

 

CIABC Director General Vinod Giri stressed the need for the EU to reconsider regulations to ensure a fair and mutually beneficial trade agreement between India and the EU.

 

'The most notable is the condition that for a product to qualify as a whisky, it must be matured for a period not less than three years [Sub Para 2(a)(iii) of Annex 1 of Regulation (EU) 2019/787], and for brandy for one year [Sub Para 5(a)(ii) of Annex 1 of Regulation(EU) 2019/787],' said CIABC Director General, Vinod Giri.

 

'It has been highlighted several times, along with scientific substantiations, that such long maturation is not applicable under warm Indian climate. We believe that it is effectively a non-tariff barrier since long maturation increases the cost of Indian products by 30-40 per cent as spirit evaporates 10-15 per cent every year under Indian climate (compared to 1-2 per cent in Europe) and the cost of capital deployed during maturation (8-10% per annum in India compared to 2-3 per cent for Europe). We firmly believe that if the EU does not repeal the law pertaining to the maturation, any trade agreement will be one-sided favouring only the EU and will do nothing for the Indian industry,' he added. 

A number of things need to be developed across different agricultural pockets from north to south Bengal, West Bengal Food Processing Industries and Horticulture minister Arup Roy said at a conclave organized by Indian Chamber of Commerce (ICC). The West Bengal government has undertaken different activities to support its agricultural sector.

 

'There are a lot of things that need to be developed across different agricultural pockets from north to south of Bengal. Malda is famous for its mangoes and lychee while the demand for oranges from Darjeeling moves upwards. There is another healthy product called Makhana that has gained popularity globally. The food processing units leverage technological innovations and help reshape the scenario.'

 

Emphasizing on the health hazards experienced by people due to the consumption of improper food products, OSD & state Commissioner of Food Safety under Health & Family Welfare Department Tapan Kanti Rudra said, 'The industry is ever flourishing and our role is regulatory. We stand as facilitators to the sector. We look after creating logistics, human resource development, and sharing knowledge and information.'

 

Rudra mentioned that the alarming rise of non-communicable disease is a concern. 'Food borne diseases affect 60 crore people worldwide while 200 types of water borne disease spread across worldwide,' Rudra said, adding 'Large scale prevalence of anaemia has also surfaced. A survey conducted between 2014-15 indicated that 54 percent of children in the age group of 0-5 years suffer from anaemia. This indicates that our cereals are lacking micronutrients.'

 

'The FSSAI has notified food standards mentioning the standards of food. Food fortification has been undertaken to cure anaemia. Moreover, 2023 has been declared as the International Year of millet. Millet-based food products are healthy and in highs demand. Food sample analysis is another measure to ensure good quality of food. We have three food testing labs. Mobile food testing labs are also functional these days,' Rudra said.

 

Sharing different initiatives and policies initiated by the West Bengal government to ensure development in the food and agricultural sector, state Director Food Processing Industries Kasturi Sengupta stated, 'The West Bengal government has undertaken different activities to support its agricultural sector. It is the largest producer of rice and the second largest producer of potato in India. The industrial policy has put focus on agro-based products. The state has supported participatory farming to grow fruits and vegetables by entrepreneurs.'

 

'Apart from introducing the Pradhan Mantri Formalisation of Micro Food Processing Enterprises scheme, it is providing subsidies for common infrastructure, branding and marketing. The state has also introduced the West Bengal Food Processing Unit in 2021. We will extend all possible support to the ones interested in investing in the department,' Sengupta said.

 

Speaking on consumer behaviour and small-scale entrepreneurs D Bandyopadhyay, Managing Director, Herald Food & Commodities Private Limited, stated, 'Despite all odds, the food sector is trying to develop and excel in West Bengal. The eastern region is quite rich in agricultural production and dependent on agriculture. Secondly, consumer behaviour is rapidly changing. Our vision needs to change and launch new products acceptable by the current consumers. We are focusing on the next generation entrepreneurs.'

 

Shaurya Veer Himatsingka, ICC member & owner of Elmac Foods, said, 'India being rich in the agricultural domain is slated to grow at a cumulative annual growth rate of 99.4 percent between 2022 to 2027…From AI to machine learning, Assamese agriculturists are using these technologies in their efforts towards sustainable practices.'

 

ICC hosted the West Bengal Food Processing Conclave on Thursday with primary focus on technological upgradation and awareness of financial schemes in the state’s agricultural sector.

The government has extended current effective zero import duty on masur dal (lentil) till March 2025 in order to ensure steady supply of the key pulse from international market and keep domestic prices under check. However, the government has not extended the current import duty structure on three crude edible oils -- palm oil, soyabean oil and sunflower oil.

 

According to a finance ministry notification, the exemption of zero import duty on masur as well as agri-infra cess of 10 per cent has been extended till March 2025.

 

This exemption on masur was valid till March 2024.

 

'In some of the pulses, we don't produce as much as we consume. For stability of import policy, the current exemption has been extended on masur till March 2025 so that farmers of the producing countries get clear signal from India and plan their sowing,' Consumer Affairs Secretary Rohit Kumar Singh told PTI.

 

The basic import duty on masur was reduced to zero in July 2021, while the exemption from 10 per cent agri-infrastructure cess was given in February 2022. Since then, it was extended multiple times and currently was valid till March 2024.

 

A finance ministry official said that the notification is only for extending zero duty and exemption of agri-infra cess for masur alone, not three crude edible oils.

 

India is the world's largest producer and import of pulses. It imported 24.96 lakh tonnes during 2022-23.

The country's alcoholic beverages exports are expected to cross USD 1 billion in the next few years on account of increasing demand for spirits in global markets, a senior government official said on December 21. As against the exports of USD 325 million in 2022-23, the outbound shipments from the sector touched USD 230 million during April-October this fiscal, Additional Secretary in the commerce ministry Rajesh Agrawal told reporters here.

 

The global trade of these products is about USD 130 billion. 'The demand for Indian spirits is increasing…It is expected to go beyond USD 1 billion in the next few years. Indian beverages market is growing very fast and slowly demand for these brands across the world is also picking up,' Agrawal said, adding that in the forthcoming three-day Indus Food show in Greater Noida (Uttar Pradesh), there will be a wine and spirits section.

 

Over 2,500 global buyers, 5,000 domestic buyers and 86 retail chains would be participating in the show apart from over 120 foreign exhibitors. The world trade in the segment is being captured by Scotch (USD 13 billion).

 

When asked if free trade agreements of India will help promote these exports, he said, 'This is also one of the areas where we are trying to negotiate upon…we are also trying to see the duty concessions that are required in various destinations, we get (that)'. The condition that for a product to qualify as a whisky, it must be matured for a period not less than three years has not yet been resolved.

 

The Indian industry claims that because of the warm climate in India, the product matures in one year and gives the same outcome. 'The debate is still on whether we should brand it as Indian whiskey or look for a scotch (brand)…International law in many countries prohibits that (one-year thing). It is an unresolved issue,' he added.

 

According to the alcoholic beverages makers' body Confederation of Indian Alcoholic Beverage Companies (CIABC), it has been highlighted several times, along with scientific substantiations, that such long maturation is not applicable under a warm Indian climate. 'We believe that it is effectively a non-tariff barrier since long maturation increases the cost of Indian products by 30-40 per cent as spirit evaporates 10-15 per cent every year under Indian climate (compared to 1-2 per cent in Europe),' CIABC Director General Vinod Giri has said.

 

He has also said that the cost of capital deployed during maturation in India is high (8-10 per cent per annum) as compared to 2-3 per cent for Europe.