UAE is witnessing an exponential increase in onion prices after India announced an export ban until March next year to contain local prices. Retail industry executives in the country say they're looking for alternative sources to procure the commodity as prices jumped six times to meet the demand.

 

Ashok Tulsiani, group FMCG director at Al Safeer, confirmed that there has been an impact on onion exports, resulting in retail prices rising by 'at least six times.'

 

'Turkey, Iran, and China are potential alternatives, but in terms of quantity, quality, and price, Indian onions are still the best and most of the customers' preference. Any other country does not fully justify the demand for Indian onion,' Tulsiani said in a statement to Khaleej Times.

 

After onion rates rose to Rs70-80 per kg in New Delhi, India's Directorate General of Foreign Trade (DGFT) amended the export policy of onions 'from free to prohibited till March 31, 2024.'

 

India is also a major exporter of onions to other neighbouring countries in the Subcontinent and the Gulf countries, resulting in prices in those countries also going up due to the ban by New Delhi.

 

Kamal Vachani, group director and partner of Al Maya Group, said the Indian government's ban on onions has prompted the exploration of alternative countries to fulfil the onion demand in the UAE.

 

'UAE has diversified its sourcing channels and has identified several potential countries to serve as alternative sources for onions,' he said, adding that Egypt is being considered as another potential supplier of onions to the UAE market, and Turkey presents itself as an additional option for sourcing onions to cater to the demands of the UAE market.

 

'We are actively expanding our sourcing networks to guarantee a consistent onion supply for consumers in the UAE. Nevertheless, we are dedicated to maintaining market stability and meeting consumer demands,' he added.

India may allow the supply of 20,000 tonnes of refined sugar to Kenya, one of its strategic partners in Africa, overriding an export ban on the sweetener.

 

This will likely be permitted under the advanced authorisation scheme, a government official informed. Under AAS, refineries can import raw sugar and export refined sugar after value addition.

 

India, which surpassed Brazil in the 2021-22 season to become the world’s largest sugar producer and second-largest exporter, imposed export controls in October last year. This was later extended beyond October 2023 considering an expected decline in production.

 

'Although India will have sufficient availability for domestic consumption, there may not be any surplus quantity for exports due to anticipated lower production this year than the previous year,' said the official.

 

'Therefore, it has been suggested that the refineries that import raw sugar and export refined sugar after value addition under AAS, to export the quantity to Kenya.'

 

The external affairs ministry, the commerce and industries ministry, and the food and public distribution department did not immediately reply to queries on the matter.

 

AAS is not restricted under the sugar export policy and no separate permission is required from the government. The scheme allows duty-free import of raw materials that are to be incorporated in products meant for exports. 

 

The official quoted earlier said the ministry of external affairs has recommended exporting 20,000 tonnes of sugar via sea, a more cost-effective route, against Kenya’s request for 500,000 tonnes of the sweetener.

 

India supplies 10,376 tonnes of sugar on average to Kenya each financial year, according to commerce ministry sources. Earlier this month, the government allowed exports of 100,000 tonnes of non-basmati white rice to Kenya and 140,000 tonnes to four other African nations, overriding an existing ban. 

 

India’s sugar production in the 2023-24 season (October-September) is estimated to have dropped to 30-30.5 million tonnes, after diversion for ethanol, against domestic consumption of 27.5-28 mt. The country produced 32.7-32.8 mt of sugar in the year prior.

 

The lower output is due to the El Nino weather condition compromising monsoon rains in August, top-producing states Maharashtra and Karnataka hard. 

 

El Nino is anticipated to strengthen through 2023-24, which could lead to intensification of dry conditions during the next sugar season. This may lead to a further decline in sugar production during the 2024-25 season. 

 

As India nears the crucial general election in a few months, the government has escalated export curbs to stabilise prices amid a significant jump in food inflation. 

 

It recently asked sugar mills to not use cane juice to make ethanol and to ramp up production of sugar to make up for lower anticipated crop following patchy monsoons. Besides sugar, India has placed curbs on wheat, rice and onion exports. 

 

Food inflation, measured by the consumer food price index, which accounts for nearly half of the overall consumer price basket, rose to 8.70% in November from 6.61% in October and 6.62% in September because of a substantial rise in the prices of vegetables and pulses.

Department of Animal Husbandry and Dairying, Government of India is implementing 'National Programme for Dairy Development (NPDD)' scheme across the country since Feb-2014, with an objective of creating/strengthening of infrastructure for Production of quality milk, Procurement, Processing and Marketing of Milk & Milk Products. The scheme has been restructured/realigned in July 2021, for implementation from 2021-22 to 2025-26 with a total budgetary allocation of Rs1790 crore having two components:

 

Component 'A' focuses towards creating/strengthening of infrastructure for quality milk testing equipment as well as primary chilling facilities. Component 'B' (Dairying through Cooperatives) aims to increase sales of milk and milk products, upgrading dairy processing facilities and marketing infrastructure and enhancing the capacity of producer-owned institutions.

 

An amount of Rs 345.93 crore has been allocated (Budgetary Estimate) under both Component 'A' and Component 'B' (Dairying through Cooperatives) of the scheme during 2023-24.

 

Under Component A of the scheme, 195 projects in 30 States/UTs have been approved with the total outlay of Rs 3311.10 crore (including Central Share Rs 2479.06 crore). A total amount of Rs.1824.60 crore has been released to States for the implementation of these projects against which Rs. 1429.62 crore has been utilised. Under Component B of the scheme, 22 projects in 8 States have been approved with a total outlay of Rs 1130.63 crore.

 

A total amount of Rs 84.02 crore has been released to National Dairy Development Board for the implementation of the projects. About 16,794 dairy cooperative societies have been organized/revived, 30,066 Automatic Milk Collection Unit have been installed and about 82 dairy plants have been strengthened with creation of 24.00 lakh litres per day additional/new milk processing capacity under the scheme.

The Indian Government has announced that yellow peas (HS code 0713.10.10) will be exempt from import duties until the 31 March 2024. The minimum import price and port restrictions on yellow peas have also been temporarily removed until 31 March 2024, facilitating trade. India is a major producer and consumer of pulses and imports help to meet a portion of its consumption needs. Peas were excluded from the Australia-India Comprehensive Economic Cooperation and Trade Agreement (AI-ECTA) and attract a most-favoured-nation tariff rate of 50% outside of this temporary measure.

 

Australia is an established exporter of peas, and in 2022 was the fifth largest exporter of peas globally. In 2022-23, Australia exported $77 million worth of dried peas to over 22 different markets around the globe (Figure 1). Australia's main markets were China (52%), Sri Lanka (12%), Bangladesh (12%), and Malaysia (9%).

 

The Indian Government announces changes to trade through their eGazette website. The gazette announcing the temporary reduction of duties for yellow peas was released on December 7th, 2023, under Gazette ID CG-DL-E-07122023-250479. A second gazette announcing the amended import policy for yellow peas was released on December 8th, 2023, under ID CG-DL-E-08122023-250508.

 

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Assam exported agricultural products worth around Rs 4,000 crore-tea worth Rs 2,200 crore and other agricultural products worth Rs 1,800 crore-in the financial year 2022-23. Informing the media of this today, Agriculture Minister Atul Bora said, 'Barring tea, the export trend of agri-horti products from Assam, ranging from lemon to rice, is on the rise. The State Agriculture Department has been extending all necessary support to the farmers of the state to encourage them to boost exports.'

 

The Assam International Agri-Horti Show that the department has been holding for several years has also played a major role in the upsurge in the exports of agriculture products.

 

Bora said, 'The State Agriculture Department will hold the three-day Assam International Agri-Horti Show from December 16, 2023, with the theme of marching towards self-sufficiency and maximising farmers' income.' Representatives from 11 countries have already confirmed their participation in the Assam International Agri-Horti Show. The countries include Malaysia, Thailand, Indonesia, New Zealand, South Korea, Bangladesh, Iran, Bhutan, etc.

 

Bora said, 'The objective of the show is to bring experts, processors, buyers and sellers, policymakers, bureaucrats, farmers, producer organizations, NGOs, farm machinery suppliers, and other facilitators of the agri-horti sector together on one platform. Twenty-nine resource persons from eminent institutions in the country will share their knowledge with the participants in eight technical sessions.'

 

The minister said, 'Around 10,000 farmers will participate in the show. The farmers of the state were encouraged to cultivate millet, floriculture, oil palm, fodder, etc. after visiting such agri-horti shows.' Bora informed the media that the State Government is going to set up an international-level orchid farm at Kaziranga costing Rs 17 crore.'

The Meghalaya Directorate of Horticulture and Agricultural Marketing Board Tuesday flagged off a ceremony to send 20 metric tonnes of Khasi Mandarin oranges to Dubai.

 

The move to boost trade and commerce prospects by connecting foreign markets marked a significant increase from the 1 tonne Khasi Mandarin exported to Doha and Bahrain last year.

 

Khasi Mandarin is a variety of oranges unique to Meghalaya. These citrus fruits often grow larger than a tennis ball, weighing between 130-150 gm, are bright orange in colour and are characterised by a very mild 0.6-0.7 per cent citric acid, making them full of sweet and aromatic citrus juices.

 

Meghalaya Agriculture and Farmers’ Welfare Minister Mazel Ampareen Lyngdoh, who joined the flagging-off ceremony as chief guest at the Integrated Agriculture Training Centre (IATC) in Upper Shillong, said the government is looking to boost Khasi Mandarin exports and focus on organic farming of the fruit, reclaim confidence of farming communities and financially assist the growers.

 

'At one point, we would only, on trial, internationally export 1.5 MT to 2 MT of Khasi Mandarin; today, we are talking of 20 MT. This step will instil a sense of security in our farmers, telling them that we will grow together and benefit together. They (farmers) are going to be dictating our economy.'

 

'The next biggest challenge is to handhold all our farmer groups to return to natural farming practices. The Organic Mission needs to be attended to. We have to reclaim our confidence in the farming communities. We will do what it takes to sensitise, educate, expose, and financially assist our farmers,' she added.

 

Agriculture Secretary Isawanda Laloo said Meghalaya’s unique agro-climatic conditions facilitate the growth of many fruits and crops. He also said there is a huge opportunity to promote organic farming of Khasi Mandarin since farmers still cultivate in the traditional way in the state.

 

MLA RV Lyngdoh, Horticulture Director D C Sohtun, Lulu Group international senior general manager Ravi Kumar, Agricultural and Processed Food Products Export Development Authority (APEDA) deputy general manager in-charge of NE region Sunita Rai and Agriculture Director J C Lyngdoh were among the attendees.

 

Sunita Rai said while growing foreign exports are crucial for the business potential, these are 'stepping stones to success'. She said Khasi Mandarin is expected to be soon exported through commercial shipments. She said there are also a few other local fruits that APEDA has plans to popularise.

 

Last month, the Meghalaya Agriculture Marketing Board signed an MoU with the Lulu Group to set up a strategic partnership for mutual growth and promote Meghalaya’s agricultural products to Gulf nations. Lulu Group senior general manager Ravi Kumar expressed confidence in achieving higher export volume next year.

 

Khasi Mandarin is locally Called Soh Niamtra or Soh Myntra in Meghalaya’s Khasi language and is widely cultivated in Meghalaya, Assam and a few other Northeastern states. It is also called Soh Sohra in Shillong to signify its place of origin – Sohra, which used to be the hub of the Khasi mandarin trade in the past.

 

Meghalaya is a significant grower of oranges in the region, and the fruit is considered an important commercial crop here. The state obtained a Geographical Indication (GI) tag for the Khasi Mandarin in 2014 and promoted the fruit in different parts of the country and abroad.

 

Before Khasi Mandarin, Meghalaya successfully marketed Kew Pineapples, Lakadong turmeric, and ginger to European countries.

 

Khasi Mandarin is sourced from a host of local farmers and producers companies and cooperatives in Ri Bhoi district, East Garo Hills, West Garo Hills, South West Khasi Hills, East Jaintia Hills, East Khasi Hills and West Garo Hills.

 

Meghalaya has 331 integrated value chain societies, 179 primary agricultural credit societies, 81 organic cooperatives, 28 organic farmer producer organisations, and 499 livestock-related cooperatives actively working in the agriculture, horticulture and animal husbandry sectors.

India and Oman are looking to further develop economic and diplomatic ties as bilateral trade between the two countries hit $3.7bn in the first nine months of this year.

 

The bilateral relations between Oman and India have seen a remarkable progress and an advanced cooperation that contributed in establishing strategic partnership based on mutual trust and respect and enhanced by historic deep-rooted ties.

 

The talks to be held by Sultan Haitham bin Tarik with the Indian leadership in New Delhi will scale up the existing strategic partnership between the two countries towards high ranks through promoting trade, investment and cooperation to achieve integration between the two sides in diverse fields.

 

India and Oman trade

The size of commercial exchange between Oman and India stood at OR1.447bn ($3.7bn) as at the end of third quarter of 2023.

 

Meanwhile, the volume of Omani exports to India stood at OR699.218m ($1.8bn) represented in oil, minerals, LNG, polyethylene, propylate, aluminum and urea.

 

On the other hand, the volume of Omani imports from India amounted to OR747.883m ($1.9bn) represented in rice, motor fuel, natural gasoline, wheat, ignition control of vehicles and iron ore.

 

The volume of investments from the India in Oman by the end of June 2023 amounted to OR378.4m. The number of Indian companies investing in Oman by the end of 2022 reached 1,744 with an investment volume of OR281m.

 

These investments distributed in sectors of industry, construction, trade, transportation, communications, oil and gas, mining, quarrying, education, agriculture, fisheries, tourism and health.

 

The invitation extended by India to Oman as a guest of honour in the G20 Summit which it hosted, represents an affirmation of the advanced and sincere relations between the two friendly countries.

 

These relations were confirmed by Muscat and New Delhi during the eighth Omani-Indian strategic dialogue session last January 2023, which highlighted the top priority that the two leaderships attach to strengthening bilateral strategic relations based on mutual trust and respect.

 

Issa bin Saleh Al Shaibani, Ambassador of Oman to India, said that what unites the two countries is their historic deep-rooted relations.

 

Al Shaibani said that since the establishment of official diplomatic relations between the two countries in 1955, they have taken great strides in the field of strategic cooperation, the positive outcomes we are witnessing clearly in the increase in the volume of bilateral trade between the two countries to about $10bn during the period from 2021 to 2022.

 

Amit Narang, Ambassador of the Republic of India to the Sultanate of Oman, said that economic relations between the two countries are witnessing a strong recovery, as bilateral trade has doubled from $5.4bn in 2020-2021 to $12.3bn in the fiscal year 2022-2023.

 

He also noted that the Asian nation is also among the largest investors in Oman, as it has a strong presence in ports and free zones in Sohar, Salalah, and increasingly in Duqm.

 

The ambassador also highlighted the tremendous opportunities to expand the scope of economic, trade and investment cooperation between the two countries in the coming years due to the fact that the economy is on the verge of becoming the third largest economy in the world, in addition to the purposeful steps taken by Oman for economic diversification.

Union Minister of Agriculture and Farmers’ Welfare and Tribal Affairs Shri Arjun Munda inaugurated ASEAN-India Millet Festival today at New Delhi. Ministers of States for Agriculture and Farmers’ Welfare Shri Kailash Choudhary and Sushri Shobha Karandlaje and Secretary, Department of Agriculture and Farmers’ Welfare, Shri Manoj Ahuja were also present in the occasion. In line with the International Year of Millets, the festival aims to increase awareness and establish a larger market for millet and millet based products.

 

Addressing the delegates from India, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippines, Thailand and Vietnam attending the festival, Union Minister Shri Arjun Munda highlighted the government policies and market innovations to promote the production and consumption of grains. Shri Munda said that millet provides innumerable benefits to farmers, consumers and the environment and makes an important contribution to global food-nutrition security.  Highlighting the socio-economic, nutritional and climate benefits associated with its increased consumption, Shri Munda stated that this program reflects the vibrancy of millets and its immense potential in transforming agriculture and nutrition. Under the visionary leadership of Prime Minister Shri Narendra Modi, the Government of India has played an important role in organizing the mega event of International Millets Year 2023. This concerted effort transcended boundaries and transformed the event into a global milestone of unparalleled significance. Prime Minister Shri Modi's deep understanding of sustainable agriculture and nutrition security has been the driving force behind India's proactive progress in placing food at the forefront of the global agenda. Celebration of the International Year of Millets has been important in creating awareness about millet to ensure food security and better nutrition. This has led to investment in extension services along with research and development, which motivates stakeholders to increase the productivity, quality and associated production methods of grain. In the face of global challenges of climate change, the importance of grains increases even more. Millet is an ancient grain, the specialty of millet is that it is small, but nutritious and provides strength to the body. Millet has the power to revolutionize our approach to agriculture, climate and food security.

 

Union Minister Shri Munda said that millet is not only the bearer of a rich cultural heritage but also offers a sustainable solution that matches our current concerns. The ability of grains to address key Sustainable Development Goals, including zero hunger, good health and well-being, sustainable consumption and production, and climate action, positions it as indispensable resources for developing countries. He said that millet has the ability to thrive in diverse environments, requiring minimum resources while providing maximum nutritional benefits. Adopting millet in the diet is not just about nourishing yourself; rather, it is about nourishing the earth, promoting sustainable agricultural practices, and ensuring a healthier, more secure future for future generations. Shri Munda said that we should recognize the impact it has on our farmers, because grains are not just crops; they are a beacon of hope for our farming communities, which provides stability in uncertain climate and empowers our farmers with favorable yields and sustainable income. Known for its minimal water requirements, low carbon footprint and ability to thrive in drought conditions, buck wheat truly meets the criteria of climate friendly crops. In view of the increasing demand for vegetarian, gluten free food, millet offers alternative food systems. Millet is nature's gift to humanity, as well as a promising source of food for a sustainable future.

 

Shri Munda said that the Government of India has launched massive campaigns and positioned millet as a better solution to tackle malnutrition, mitigate the adverse effects of climate change and promote the adoption of sustainable farming practices.  Ministry of Agriculture is actively implementing Millets Sub-Mission under National Food Security Mission in all the States and Union Territories to promote millets and meet the increasing demand. The Ministry of Agriculture, in collaboration with various ministries and states, has played an important role in the promotion of millets in the country. The launch of several State Millet Missions and Projects is a testimony to our commitment. The International Year of Millets has brought widespread awareness of millet and increased consumption of millet in India and on the global platform through a series of impactful initiatives and strategic commitments. Shri Arjun Munda said that our commitment is not just in words, but goes beyond this. By nominating millets as “One Country-One Priority Product' in the Food and Agriculture Organization and expanding it to “One District-One Product' in 21 districts, we have harnessed the potential of millets, their nutritional value and Economic feasibility. He said that the announcement made by Prime Minister Shri Modi during the Global Millets Conference in March 2023 regarding converting the Indian Millets Research Institute into a Global Center of Excellence for Millets is a step towards promoting millet cultivation and global research cooperation and innovation. It is a symbol of our dedication. IIMR has played an important role in setting up 25 seed hubs, 18 centers in various institutions and has developed more than 200 improved varieties of grains in collaboration with other agricultural institutions. This has ensured surplus availability of high quality cereal seeds, with the aim of increasing the annual seed replacement ratio to 10%.

 

Secretary, Department of Agriculture and Farmers’ Welfare, Shri Manoj Ahuja, emphasized the festival's significance in fostering India’s diplomatic ties with ASEAN nations for promotion and adoption of millets. During the ceremony, a short video presentation showcased the journey of International Year of Millets 2023 initiatives, emphasizing the Indian government's interventions for enhanced millet production, usage, and accessibility.

 

The inaugural day featured two enlightening panel discussions, The first panel, ‘Issues of Hunger and Malnutrition in Southeast Asia – Millets as a Solution,’ moderated by Additional Secretary, Ministry of Women & Child Development, Shri Sanjeev Kumar. It brought out interesting insights on the nutritional merits of millets, its potential to address world hunger and the many ways to turn them into nutrient-packed culinary delights to fight nutritional deficiency. The second panel, titled, ‘History and Culture of Millets in Southeast Asia,’ moderated by Joint Secretary, Ministry of Culture, Ms. Lily Pandeya delved into the historical and cultural ties between the regions, emphasizing millets' role in reviving traditional connections.

 

The festival will conclude on 15th December 2023. The event followed a preceding festival held in Jakarta, Indonesia from 22-26 November 2023. On day two of the festival, a Business-to-Business (B2B) meeting is organized by APEDA. This meeting is curated to serve as an interactive platform fostering engagement between businesses from India and the ASEAN member states, specifically those involved in trading millets and millet-based products. The objective is to facilitate participants in exploring synergies and commercial opportunities across geographic boundaries. This moment will be crucial for numerous startups and farmer-led organizations to assess the appeal and viability of their products for an international audience.

 

Additional Secretary Ms. Maninder Kaur and Joint Secretary Ms. Shubha Thakur welcomed the guests. In the festival, along with panel discussions on food security, business cooperation and other topics, an exhibition of millet based products has also been organized by FPOs and Startups. Policy makers, entrepreneurs, expert startups and officials from ASEAN countries including India are participating in this two-day festival organized by the Indian Mission in ASEAN in collaboration with the Ministry of Agriculture and Farmers’ Welfare.

 

Russian imports of 1.2 billion eggs will be exempt from duty for the first six months of 2024, the economy ministry said on Wednesday, to help rein in prices as some shops run low on supplies.

 

Egg prices have risen more than 40% so far this year and empty egg shelves have been seen in some Moscow supermarkets in the past week. Eggs remain widely available online and not all shops have been affected.

 

'The decision will help in the short term to balance the domestic market of eggs and ensure supply growth,' the ministry said. The measure will apply from Jan. 1 to June 30.

 

It said imports could be sourced from 'friendly countries', meaning those that have not imposed sanctions on Russia over the conflict in Ukraine. The agriculture ministry said imported supplies would help stabilise prices.

 

Russia has been grappling with stubbornly high inflation after a double-digit rise in 2022. Prices for eggs have risen 42.4% since the start of the year, according to data from federal statistics service Rosstat.

 

In the southern city of Belgorod, shoppers queued for eggs at a market where 10 eggs were available for 65 roubles ($0.72) as opposed to the supermarket price of more than 150 roubles ($1.67), a Reuters reporter said.

 

Natalia Chernovolova, a resident of Valuyki in the Belgorod region, said prices above around 150 roubles were too much for her.

 

'I have to look for other options, cheaper ones,' she said. 'Because we need eggs not just for New Year, for festive salads, but for our daily diet.'

 

Some Belgorod residents have been hoarding eggs and selling them on at higher prices, the deputy regional governor Yulia Shcherdina said, seeking to reassure people that supplies are sufficient.

 

'There is no shortage of supply,' Shcherdina wrote on Telegram earlier this week. 'There is no need to create an artificial frenzy.'

 

Egg production fell 1.3% year-on-year in October, said Andrei Sizov of the Sovecon agriculture consultancy. Some consumers switching from chicken to eggs as a source of protein in the face of price rises may have compounded the fall in supplies, he said.

 

Russia's General Prosecutor's Office last week said it had met various federal bodies to discuss egg prices and pledged that unjustified price increases would be curbed.

 

($1 = 89.9050 roubles)

The Asian Development Bank (ADB) on Wednesday raised its FY24 growth forecast for India to 6.7% from 6.3% announced three months ago, joining a host of agencies to revise up projections citing the country's stronger-than-anticipated growth of 7.6% in the September quarter.

 

In its latest report on outlook for developing Asia, the multilateral lender, however, retained its India growth forecast for FY25 at 6.7%.

 

Recognising accelerated growth momentum, the RBI this month raised its FY24 growth projection for India to 7% from 6.5%, while Nomura increased it to 6.7% from 5.9%, Citigroup to 6.7% from 6.2% and DBS to 6.8% from 6.4%. India recorded a 7.7% expansion in the first half of this fiscal.

 

It also revised its 2023 growth projection for China to 5.2% from 4.9% earlier. For India, ADB said elevated growth in fixed investment-driven by increased public capital expenditure-will more than make up for lower growth in private consumption expenditure and weaker-than-expected exports amid the external turmoil.