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19 Dec, 2023 News Image

India s lentils output may rise on higher yield, says trade.

The production of masur (lentils) will likely increase this crop year (July 2023-June 2024) with favourable weather supporting the crop despite the acreage trailing marginally till mid-December compared with the year-ago period.

The India Pulse and Grains Association (IPGA), in its latest market update, said the forthcoming domestic masur crop is projected to have higher yields due to favourable weather conditions in Madhya Pradesh and Uttar Pradesh, the key producing States. The upcoming crop period of December-January is crucial for plant growth and the yield potential hinges on the soil moisture availability. 'If nothing goes wrong on the weather front, we should have a crop of 16.5-17 lakh tonnes, higher than last year’s 15.5 lakh tonnes,' said Bimal Kothari, Chairman, IPGA.

Sowing down a tad

At the rabi outlook webinar of Friday, Manek Gupta, Managing Director, Viterra India Pvt Ltd, said crop conditions in most growing areas were pretty good and that the expectation was yields of lentils may be higher and the crop could be higher by 5-10 per cent this year. 'We can look at crop of 16.5 lakh tonnes or in that vicinity,' he said.

Per the Agriculture Ministry data, sowing of lentils has taken place on 16.75 lakh hectares (lh) as of December 15, marginally lower than the same period last year’s 16.84 lh.

'The expected acreage this year is 18.5-19 lh, almost similar to last year. Farmers have received healthy prices and the minimum support price has been increased by 10 per cent. All the signals have gone to the farmers and that they should be planting more,' Gupta said.

Higher MSP

The Government has increased the MSP of lentils to Rs.6,425 per quintal for the rabi marketing season 2023-24, up from the previous year’s Rs.6,000. However, the current prices are ruling around Rs.5,800-5,900 levels. 'There is 3.5 months for harvest. We really need to see how prices will be move between now and the harvest window,' he said.

The Government has bought almost half a million tonnes of lentils from the trade. According to the estimates, the government is holding stocks of 6.5 lakh tonnes of lentils. From a supply and price perspective, the government will be an important player in the lentils market, Gupta said. 'Last year, the government bought 1.5 lakh tonnes from the farmers and this year they will probably buy more considering how much lower the price is compared to the MSP,' he said.

Rahul Chauhan of Igrain India also said that the lentils crop condition is good and that we can see a production of over 14 lakh tonnes. Due to the huge increase in imports of lentils and also due to last year’s good crop, the market is range-bound, Chauhan said.

Kothari said the lentils imports this year have been more than a million tonnes. The monthly consumption of lentils is about 2 lakh tonnes, Kothari said, adding that the supply situation was comfortable.

Source: thehindubusinessline.com

19 Dec, 2023 News Image

Five out of top 10 destinations see a rise in April-November exports.

During the first eight months of the financial year, five out of India’s top 10 export destinations — Saudi Arabia, China, the United Kingdom (UK), Australia and the Netherlands — witnessed growth, even as India’s overall exports saw 2.8 per cent contraction, data compiled by the commerce department showed.

These 10 countries account for over 49 per cent of India’s merchandise exports.

Exports to the Netherlands, which is India’s third largest market, saw 9.6 per cent year-on-year (Y-o-Y) growth at $13.5 billion during April-November.

While disaggregated country-wise trade data was not available till November, the trend in the first seven

Source: business-standard.com

19 Dec, 2023 News Image

India, UK 14th round of FTA talks in January.

India and the UK will in January next year hold the next round of talks for the proposed free trade agreement (FTA) to resolve remaining issues, the commerce and industry ministry said on Monday.

The 13th round of negotiations for the proposed pact was held between September 18 and December 15.

'The round included sessions both in person, in London and Delhi, and virtual talks. As with round 12, these negotiations focussed on complex issues including goods, services, and investment,' the ministry said in a statement.

The negotiations for the agreement were launched on January 13, 2021.

There are 26 chapters in the proposed pact. Talks have been stuck on certain crucial issue of visas, tariffs on whisky and rules of origin.

India wants greater access for its skilled professionals from sectors like IT and healthcare in the UK, market access for several goods at nil customs duties and social security agreement in the pact to ensure that employers are saved from making double social security contributions for the same set of employees posted in other countries. The UK’s demand on import duty concessions on electric vehicles, whisky and dairy products, is another sticky issue.

'The UK and India will continue to negotiate towards a comprehensive and ambitious

FTA,' the ministry said.

India’s imports from the UK in April-October were $4.7 billion while exports were $7.4 billion.

India’s main exports to the UK are ready-made garments and textiles, gems and jewellery, engineering goods, petroleum and petrochemical products, while key imports include precious and semi-precious stones, ores and metal scraps, and engineering goods.

Discussions are also going on between the countries on the bilateral investment treaty. Investment is being negotiated as a separate agreement and earlier, the plan was to conclude the two simultaneously.

Source: economictimes.indiatimes.com

19 Dec, 2023 News Image

India, Oman trade ministers exhort officials to conclude talks for trade.

Commerce ministers of India and Oman have asked their negotiators to conclude talks of the proposed free trade agreement at the earliest, an official statement said on Monday. Substantively, negotiations on the text of the India-Oman Comprehensive Economic Partnership Agreement (CEPA) have been largely completed.

On the sidelines of the state visit of the Sultan of Oman, Haitham bin Tarik to India on December 16, Commerce and Industry Minister Piyush Goyal and Minister of Commerce, Industry and Investment Promotion of the Sultanate of Oman Qais Bin Mohammed Al Yousef, held discussions on bilateral trade and investment relations between the two countries here.

'The leaders exhorted their respective negotiators to conclude discussions on the remaining issues paving way for early conclusion of India-Oman CEPA negotiations and signing of the agreement,' the commerce ministry said.

Both countries have concluded two rounds of talks for a CEPA.

In such agreements, two countries either substantially cut or eliminate customs duties on the maximum number of goods traded between them, besides easing norms for promoting trade in services and investments.

It was decided that an Oman Desk would be created in Invest India for this purpose. Similarly, Invest Oman would also launch an India Desk.

Bilateral trade between the countries grew by 82.64 per cent in 2021-2022 to reach USD 9.99 billion. In 2022-23, it further increased to USD 12.39 billion.

Source: economictimes.indiatimes.com

19 Dec, 2023 News Image

India star performer, contributing more than 16% of global growth: IMF.

Growing at a robust rate due to economic reforms in key sectors like digitisation and infrastructure, India has emerged as a star performer and is projected to contribute more than 16 per cent of the global growth, the International Monetary Fund said on Monday.

'What we have been observing for quite some time now is that India has been growing at a very robust rate. It's one of the star performers when it comes to real growth when you look at peer countries. It’s one of the fastest growing large emerging markets and it's contributing, in our current projections, more than 16 per cent of global growth this year,' Nada Choueiri, the Mission of India at IMF, told PTI in an interview.

The IMF on Monday released its annual Article IV consultation with India, according to which the South Asian country, underpinned by prudent macroeconomic policies, is on track to be one of the fastest-growing major economies in the world this year.

Nonetheless, the economy is facing global headwinds, including a global growth slowdown in an increasingly fragmented world, Choueiri said.

There is a very strong push by the government to invest in infrastructure and develop the logistics that are needed for a solid basis for growth, Choueiri said.

India, she said, has a very large and young and growing population and thus has the potential to grow at stronger rates if this potential is harnessed through structural reforms.

The government has done several structural reforms, the flagship one being the digitalisation, which has been building up over many years and has put India on a strong platform for increased productivity and growth in the future.

The IMF in its annual report recommended that policy priorities should focus on replenishing fiscal buffers, securing price stability, maintaining financial stability, and accelerating inclusive growth through comprehensive structural reforms while preserving debt sustainability.

India’s economy has rebounded strongly from the pandemic to become an important driver of global growth. After surging during FY2022/23, headline inflation has, on average, moderated although it remains volatile. Employment has surpassed the pre-pandemic level and the informal sector continues to dominate while formalisation has progressed, it said.

'The financial sector has been resilient, largely unaffected by global financial stress in early 2023. While the budget deficit has eased, public debt remains elevated, and fiscal buffers need to be rebuilt. Globally, India’s 2023 G20 presidency has demonstrated the country’s important role in advancing multilateral policy priorities,' it said.

'On the political front, general elections are expected in April 2024. Macroeconomic policies have been partly in line with the past IMF staff advice,' the report said.

India has the potential to experience higher growth contributed by additional labour and human capital if comprehensive reforms are implemented. Furthermore, the country’s foundational digital public infrastructure has significant potential to raise total factor productivity by fostering innovation and competition, accelerating financial inclusion, and boosting public sector efficiency.

Observing that GDP growth reached 7.2 per cent in fiscal 2022/23, moderating from 9.1 per cent in FY2021/22, the IMF said growth has been supported by robust consumption stemming from pent-up demand of households and strong investment, with historically high levels of public capital expenditure.

Strong global demand for outsourcing induced by the pandemic pushed up service export growth to a decade high in FY2022/23, raising net exports. Services exports lost some momentum in early FY2023/24, largely reflecting demand slowdown in partner countries, but GDP growth remained strong at 7.8 per cent in FY2023/24Q1, supported by robust domestic demand, it said.

Responding to a question, Choueiri noted that political stability is important for investment and growth.

'We have not done any quantitative analysis around that to be able to put a number but there is a lot of research that points to the importance of having, political stability and a clear policy environment, not just at the politics level, but in terms of policies for businesses to know what the taxes are going to be what the procedures are going to be. So this kind of transparent and future business environment is also important for investment and growth,' she said.

The government has taken a lot of steps to encourage the business environment. 'It's a glass half full, they're still important procedures that are needed to simplify further. But there are important steps that were taken. For example, the single national window, the one-stop shop for companies is a very important one. But still, in many states, there's a lot of bureaucracy that needs to be tackled and streamlined and a lot of red tape. So this is also a work in progress that needs to be continued,' she said.

The IMF, she said, believes that there is a need for labour reform.

'India has in abundance labour. And Labour is not used to its potential in India. And so, in our view, there has to be a very concerted effort to make sure that the advantages, and demographics in India are played up to the maximum,' she said, adding that this means education, skilling, and increasing female labour force participation.

The IMF in its report noted that India’s recent inflation dynamics had not followed the same pattern as in other countries.

Observing that the external environment is very tricky and it is not very supportive, Choueiri said: 'We see a lot of risks from fragmentation. We've been pointing those out. We also see more medium-term risks from climate change. Although it’s a slow-moving phenomenon, the impact of climate change, we are seeing them every day through erratic weather patterns. India is significantly impacted by that.'

These are important risks that need to be heeded and managed properly, the IMF official said. 'India is doing well. It has tremendous potential. Several important policies need to be addressed to harness that potential,' Choueiri said.

Source: thehindubusinessline.com

19 Dec, 2023 News Image

Centre directs Rice Industry Associations to ensure reduced retail price of Rice with immediate effect.

In order to review the domestic price scenario of non-basmati rice, Secretary, Department of Food and Public Distribution, Shri Sanjeev Chopra convened a meeting today in New Delhi with the leading Rice processing industry representatives.

It was discussed in the meeting that the domestic prices of rice are increasing despite a good crop this Kharif, ample stocks with FCI and in the pipeline and various regulations in place on Rice exports. The rice industry needs to ensure that the prices in the domestic market need to be brought down to optimal levels and efforts at profiteering dealt with strictly. The Annual Inflation Rate of Rice is hovering around 12% for past two years and is cumulating over the years which is a cause of concern.

During the meeting, it was discussed that the benefit of lower prices has to be passed on expeditiously to the end consumers. The leading Rice Industry Associations were advised to take up the issue with their members and ensure that the retail price of Rice is reduced with immediate effect. There are reports of a sharp increase in the margins being availed by wholesalers and retailers which needs to be tempered. Besides, it was suggested that where there exists a wide gap between the MRP and actual retail Price, the same needs to be brought down to a realistic level in order to safeguard the interest of the consumers.

FCI informed the Rice processing industry that sufficient stock of good quality Rice is available which is being offered under OMSS at a reserve price of Rs. 29/Kg. It was also suggested that manufacturers/traders may consider lifting FCI rice under OMSS which may be sold to the consumers with a reasonable margin.

The Department of Food & Public Distribution closely monitors and reviews the prices of Rice in the country and steps in whenever any intervention is required to ensure affordability of Rice which forms an important part of the diet. The Indian consumers thus can expect to pay less for Rice in the coming days.

Source: pib.gov.in

19 Dec, 2023 News Image

Production linked incentive scheme for food processing industry.

According to Production Linked Incentive Scheme for Food Processing Industry (PLISFPI) Guidelines, the PLI bene?ciaries are required to furnish incentive claims for a speci?c ?nancial year by 31st December of the following ?nancial year. Incentives of Rs 584.30 crore for FY 2021-22 have been disbursed in 41 cases so far.

The selection of beneficiaries under PLISFPI has been made on the basis of eligibility criteria in the Scheme Guidelines finalised after consultation with stakeholders.

The state-wise information of the number of companies covered under the PLI Scheme, on the basis of the o?ces, is at Annexure. The manufacturing units are located through-out the country.

The scheme aims to create employment for approximately 2.5 lakh persons. As of September 30, 2023, Quarterly Review Reports from PLI beneficiaries indicate the creation of employment for 2,37,335 persons. The employment data is maintained company wise; State-wise employment data is not maintained.

Source: fnbnews.com

19 Dec, 2023 News Image

Assam govt s initiative to procure paddy at MSP led to procurement of 6-lakh metric tonne crop: CM Himanta Biswa Sarma.

Assam chief minister Himanta Biswa Sarma said that initiative by the State government to procure paddy at a minimum support price led to procurement of a total of 6-lakh metric tonne of the crop from as many as 62,000 farmers from across the State. This led to transfer of an aggregate amount of Rs. 12,000 crores into the accounts of the farmers and agriculturists.

Sarma on Saturday visited the 8th Assam Agri-Horti Show-2023 at College of Veterinary Sciences Playground at Khanapara scheduled to be held on 16th, 17th and 18th of December, 2023.

Sarma inaugurated the Assam Mandap, Assam Agriculture University Mandap and the International Pavilion and also visited the stalls by framers from across the State where various produces were kept for display. The Chief Minister also laid the foundation stones for the project for development of the Darrangiri banana market. This apart, he virtually laid the foundation stones for the office building of Assam Seed Corporation Limited and ceremonially unveiled its logo and the “brand name'.

Addressing the event, Sarma said the current government in the State has been working tirelessly for the past two and half years for the uplift of the agriculture sector. He said the initiative by the State government to procure paddy at a minimum support price led to procurement of a total of 6-lakh metric tonne of the crop from as many as 62,000 farmers from across the State. This led to transfer of an aggregate amount of Rs. 12,000 crore into the accounts of the farmers and agriculturists, he said.

The State government’s attempt at purchase of mustard from farmers too have met with unprecedented enthusiasm, he said. The Chief Minister added that all steps are being taken to see that farmers are not deprived of the schemes and policies that have been launched or undertaken for their benefits. Millet Mission, Fodder Mission, among others, are also being utilized as medium to support the farmers, he added.

Drawing a comparison between farmers in many other States to those from Assam, Sarma said Assam’s farmers should also practise commercial tree plantation and horticulture more extensively so as to increase their incomes like their counterparts from some of the other States. Referring to products from the State such as lemon, lichi, ginger, bhootjolokia, among others, managing to attract attention in many markets abroad, Sarma exuded confidence scientific cultivation of such species would go a long way in ensuring a niche market for such products from Assam in the world market.

Sarma said though there is a Rs. 100-crore flower market in the State, flowers cultivated in the State constitute only about 15% of the total demand. The State is also dependent on procurement from outside the State for pig feed and fish feed, among others.

Source: economictimes.indiatimes.com

19 Dec, 2023 News Image

Soyabean, rapeseed boost Indian oilmeal exports up by 21% in April-Nov.

Growth in the export of soyabean meal and rapeseed meal has helped India register a 21.04 per cent increase in the overall export of oilmeals during April-November of the current financial year.

Data compiled by Solvent Extractors’ Association of India (SEA) showed that India exported 28.83 lakh tonnes (lt) of oilmeals during April-November 2023-24 against 23.82 lt in the corresponding period of 2022-23.

Highlighting the demand for Indian soyabean meal from the international market, BV Mehta, Executive Director of SEA, said improved price competitiveness and the shortage of Argentine export supplies in the recent months helped boost the export growth.

India exported 8.57 lt of soyabean meal during the first eight months of 2023-24 (3.25 lt a year ago). As of December 14, soyabean meal (ex-Kandla) was quoted at $540 a tonne, while soyabean meal from Argentina (CIF Rotterdam) was quoted at $545 a tonne. This boosted the Indian soyabean meal export from the new crops.

Logistical advantage

South-East Asia is the major consumer of Indian soyabean meal. India has a logistic advantage to South East Asian destinations, and can supply in small lots, he said.

India exported 16.07 lt of rapeseed meal during April-November of 2023-24 (14.74 lt). He said India is the most competitive supplier of rapeseed meal to South Korea, Vietnam, Thailand and other Far-East countries at $326 a tonne (f.o.b. India). Rapeseed meal from Hamburg (ex-mill) was quoted at $334 a tonne.

Ban ricebran exports

Mehta said the Government has extended the ban on the export of de-oiled ricebran until March 31 2024, contrary to the expectations of the industry.

Stating that the processing of ricebran has witnessed a significant uptick with the commencement of the new season, he said this has led to a commendable improvement in the availability of de-oiled ricebran, manifesting in a notable reduction in price from Rs.18,000 a tonne on July 28 (the date of issuing the notification) to the current price of Rs.12,800 a tonne. It is anticipated that the prices may further decrease as the ricebran processing continues to increase, he said.

The eastern States of the country, including West Bengal, are significant producers of ricebran extraction. On the implications of the decision to extend the ban on export of de-oiled ricebran, he said the underdeveloped nature of the cattle feed industry in eastern India has resulted in limited demand for ricebran extraction domestically.

With the ban on export persisting, ricebran processors in eastern India are now confronted with the looming threat of shutting down their operations, he said, adding, this not only adversely impacts the rice milling industry but also poses a risk to the overall production of ricebran oil.

Major importers

South Korea, Thailand, Vietnam and Bangladesh are the major importers of oilmeals from India.

South Korea imported 5.55 lt of oilmeals during April-November 2023-24 (6.03 lt in April-November 2022-23). This included 3.77 lt of rapeseed meal, 1.51 lt of castorseed meal, and 26,671 tonnes of soyabean meal.

India exported 3.35 lt of of oilmeals (5.67 lt) to Vietnam during the first eight months of 2023-24. This consisted of 90,540 tonnes of ricebran extraction, 1.94 lt of rapeseed meal, 49,683 tonnes of soyabean meal, and 905 tonnes of groundnut meal.

Thailand imported 4.62 lt of oilmeals during April-November 2023-24 (4.33 lt). This included 4.49 lt of rapeseed meal, 7,039 tonnes of soyabean meal, 4,666 tonnes of ricebran extraction, and 701 tonnes of castorseed meal.

India exported 5.95 lt of oilmeals (2.46 lt) to Bangladesh during the first eight months of 2023-24. This included 27,771 tonnes of ricebran extractions, 3.03 lt of rapeseed meal, and 2.63 lt of soyabean meal.

Source: thehindubusinessline.com

18 Dec, 2023 News Image

India s overall exports in November 2023 is estimated at USD 62.58 Billion; an increase of 1.23 percent over USD 61.82 Billion in November 2022.

India’s overall exports (Merchandise and Services combined) in November 2023* is estimated to be USD 62.58 Billion, exhibiting a positive growth of 1.23 per cent over November 2022. Overall imports in November 2023* is estimated to be USD 67.88 Billion, exhibiting a negative growth of (-) 6.16 per cent over November 2022.

Table 1: Trade during November 2023*

		November 2023 (USD Billion)	November 2022 (USD Billion)
Merchandise	Exports	33.90	34.89
Merchandise	Imports	54.48	56.95
Services*	Exports	28.69	26.93
Services*	Imports	13.40	15.39
Overall Trade (Merchandise +Services) *	Exports	62.58	61.82
	Imports	67.88	72.34
	Trade Balance	-5.30	-10.52

* Note: The latest data for services sector released by RBI is for October 2023. The data for November 2023 is an estimation, which will be revised based on RBI’s subsequent release. (ii) Data for April-November 2022 and April-June 2023 has been revised on pro-rata basis using quarterly balance of payments data.

Fig 1: Overall Trade during November 2023*

India’s overall exports (Merchandise and Services combined) in April-November 2023* are estimated to be USD 499.46 Billion, exhibiting a negative growth of (-) 1.39 per cent over April-November 2022. Overall imports in April-November 2023* are estimated to be USD 560.90 Billion, exhibiting a negative growth of (-) 7.58 per cent over April-November 2022.

Table 2: Trade during April-November 2023*

		April-November 2023 (USD Billion)	April-November 2022 (USD Billion)
Merchandise	Exports	278.80	298.21
Merchandise	Imports	445.15	487.42
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