India is developing sea protocols for various fresh fruits and vegetables like bananas, mangoes, pomegranates and jackfruit to promote their exports through ocean routes, a senior government official said on Tuesday. At present, most of these exports are happening by air route because of lower volumes and different ripening periods.

 

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.

 

Additional Secretary in the Commerce Ministry Rajesh Agrawal said shipments through sea route have two advantages - cost and volume.

 

The exercise would help boost exports of fruits and vegetables as shipments through air cargo have a positive impact on the price competitiveness of these commodities.

 

'So far, we are using air routes to export these perishable goods. But now, we are trying to see how we can use the sea route to send these agri products. Now, we have started developing sea protocols,' he said.

 

One of the challenges in agri exports in India has been that the majority of these goods use air cargo, and because freights are high, it reduces the competitiveness of those products, he added.

 

To start with, the Agricultural and Processed Food Products Export Development Authority (APEDA), along with other stakeholders, has developed these protocols for bananas.

 

'We did dummy testing in a container, and now, for actual testing, the first container has been shipped to Rotterdam, the Netherlands.

 

'We are confident that it will be successful, and once this is done and importers start accepting it, the volumes will increase in a substantial way,' he added.

 

Importing countries will also have to come on board to accept those consignments.

 

An increase in exports of fresh fruits and vegetables can help push shipments of agri products at a time when India has prohibited exports of non-basmati white rice and wheat.

 

For the trial shipment of bananas, APEDA has enlisted the support of ICAR-Central Institute for Subtropical Horticulture (CISH), Lucknow, for technical assistance, while InI Farms has partnered with Del Monte for marketing and distribution in Europe and Maersk for logistics.

 

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 USD 176 million, equivalent to 0.36 MMT.

 

During April-August this year, mangoe exports rose by 19 per cent to USD 47.98 million.

 

Besides the US, the major destinations include Japan, New Zealand, Australia and South Africa.

 

During April-October this fiscal, exports of fruits and vegetables grew by about 13 per cent to about USD 2 billion.

 

ASEAN Secretary-General Dr Kao Kim Hourn has said that the 10-member bloc of the Southeast Asian countries wants India to join the landmark Regional Comprehensive Economic Partnership (RCEP) for greater market access as he asserted that all partners stand to gain from the inclusive, open and rule-based trade pact. Dr Kao also said that India and ASEAN have been working together across different sectors - from space to investment, to tourism, to the defence sector and counter-terrorism, among others - and advocated expanding such cooperation in new sectors.

 

Talking to a select group of Indian journalists here on Monday evening, Dr Kao said joining the Regional Comprehensive Economic Partnership (RCEP) would benefit India as the agreement would provide greater market access.

 

He added that all partners will gain from the inclusive, open and rule-based trade pact.

 

The RCEP is a free trade area (FTA) consisting of 10 ASEAN members (Brunei, Cambodia, Indonesia, Malaysia, Myanmar, Singapore, Thailand, the Philippines, Laos and Vietnam) and five of the bloc's dialogue partners -- China, Japan, South Korea, Australia and New Zealand.

 

The landmark agreement was signed in November 2020. Together, these RCEP participating countries account for about 30 per cent of the global GDP and 30 per cent of the world population.

 

India had pulled out of the RCEP as, according to officials, joining it would have resulted in fairly negative consequences for the country's economy.

 

'Looking ahead, of course, we hope to continue to expand the existing areas of cooperation and also to deepen our cooperation,' he said, suggesting collaboration in the biotech sector, public health facility, renewable energy sector, people-to-people exchange, connectivity and in many other areas.

 

'We stand to benefit from the partnership between ASEAN and India. At the moment, we have many mechanisms for cooperation between the two sides,' he added.

 

Recalling Prime Minister Narendra Modi's visit to Jakarta in September to attend the ASEAN summit, he said the grouping 'highly value' its 'partnership' with India.

 

'We were delighted to welcome Prime Minister Modi to Jakarta, where he participated in the ASEAN India Summit. And we highly value our partnership with India,' he said.

 

During the Summit on September 7 in Jakarta, Prime Minister Modi presented a 12-point proposal to expand cooperation between India and ASEAN in a range of areas such as connectivity, trade and digital transformation even as he called for building a rules-based post-COVID world order.

 

The prime minister had reaffirmed that ASEAN is the central pillar of India's Act East Policy and it fully supports ASEAN centrality and its outlook on the Indo-Pacific.

 

Dr Kao said that ASEAN is a maritime community and India is a maritime nation. 'We can collaborate in the maritime sector, for example, maritime cooperation, which is one of the four priority areas under the ASEAN outlook on the Indo-Pacific. Also (we can) work together in the digital economy and sustainability, in the renewable energy sector and people-to-people exchanges and connectivity.'

 

Dr Kao also talked about the contributions of ASEAN-India dialogue relations to ASEAN's community-building efforts and underscored the important role of media in encouraging greater cooperation between ASEAN and India, especially in the areas of cultural exchanges, connectivity and people-to-people ties, among others.

 

He advocated a liberal aviation pact that would facilitate more direct flights between India and ASEAN nations and enhance people-to-people ties and boost tourism.

 

Responding to a question on conflicts in different parts of the world, Dr Kao said that ASEAN is a strong proponent of peace, dialogue and diplomacy.

 

'ASEAN has always been promoting a culture of dialogue, habits of consultation, and of course constructive engagement,' he said, adding that things should be worked out through dialogue and the non-use of force.

 

He hoped that the United Nations would play a constructive role in the resolution of the ongoing conflicts around the world.

 

'We hope that the United Nations will play a constructive role in ongoing conflicts around the world. We believe that the UN has the means and of course, the commitment to work toward the resolution of the conflicts, particularly when we see a humanitarian tragedy unfolding before us,' he said, referring to the Israel-Palestine conflict.

 

ASEAN wants 'peace should be given a chance', he added.

 

The ASEAN or the Association of Southeast Asian Nations is considered one of the most influential groupings in the region, and India and several other countries including the US, China, Japan and Australia are its dialogue partners.

 

ASEAN-India dialogue relations started with the establishment of a sectoral partnership in 1992. This graduated to a full dialogue partnership in December 1995 and a summit-level partnership in 2002. The ties were elevated to a strategic partnership in 2012.

 

The ties between India and ASEAN have been on a significant upswing in the last few years with the focus being on boosting cooperation in the areas of trade and investment as well as security and defence.

 

The two sides elevated their ties to a comprehensive strategic partnership last year.

 

The 10 member countries of ASEAN are Indonesia, Malaysia, the Philippines, Singapore, Thailand, Brunei, Vietnam, Laos, Myanmar and Cambodia.

Buyers of Indian non-basmati rice are now scouring for brown rice, particularly the Swarna variety, with rice supplies tightening up on the global market, exporters say. 'The Swarna variety is a short length variety of 5.2 mm. Vietnam has begun to buy it,' said VR Vidya Sagar, Director, Bulk Logix. 

 

'We are getting enquiries for brown rice, though we haven’t struck any deal as yet,' said M Madan Prakash, President, Agricultural Commodities Exporters Association (ACEA). Prakash’s firm Rajathi Group exports rice, onion and maize (corn). 

 

'Brown rice is considered at par with parboiled. So, its export is allowed but at a 20 per cent export duty,' said Delhi-based exporter Rajesh Paharia Jain. 

 

Sagar and Jain said brown rice was commanding $500 a tonne f.o.b. 'Only Vietnam has begun buying so far,' Jain said. Sagar said at least 5,000 tonnes could have been shipped to Hanoi so far.

 

Thai subsidy scheme

The development comes at a time when India has banned exports of white rice, except for government-to-government deals, and imposed 20 per cent export duty on parboiled consignments from the country. It has also fixed $950 a tonne as the minimum export price for Basmati rice shipments. 

 

Besides Indian export curbs, the global rice market has been starved of supplies with Thailand now providing subsidies to its paddy farmers to hold back their produce at least until March 2024.

 

The Thailand Cabinet has approved a 55 billion baht (Rs.13,030 crore) scheme to hold back their paddy for at least five months. Bangkok Post reported that loans have also been approved for cooperatives to buy the paddy. 

 

Farmers holding back their produce would be paid 12,000 baht (Rs.28,450) and an additional 1,500 baht (Rs.3,550) for storage. The plan is to hold back 3 million tonnes so that domestic prices of the cereal will not surge. 

 

Prices firm up

The US Department of Agriculture has estimated Thailand’s rice production at 19.5 million tonnes (mt) for the 2023-24 season against 20.91 mt in the previous one. 'Thailand’s move is a clear indication that a clear picture of the global rice market will be available only around April. India should wait until then before reviewing the curbs,' said trade analyst S Chandrasekaran.

 

He also called for 'occasional' scrutiny of Basmati rice shipments since unscrupulous elements could over-invoice non-basmati white rice and export it. 

 

Thailand’s scheme has resulted in rice prices firming up in the global market, apart from Indian rice crop facing weather woes. 'Two weeks ago, parboiled rice prices were around $490/tonne. Now, they have increased to $510-515,' said Bulk Logix’s Sagar. It is still competitive compared to Thailand’s $585 and Pakistan’s $546-550.

 

Tardy FCI buy

But prices could head south since the Food Corporation of India (FCI) is saddled with huge stocks, he said. 

 

As of November 1, FCI had 20.04 mt of rice stocks, higher than 16.6 mt a year ago. Stocks are higher despite FCI procurement this marketing year from October being 4.4 per cent lower at 16.13 mt. 

 

Trade sources said FCI’s rice procurement has been tardy and a clear picture will emerge around the third week of December. 

 

According to National Centres of Environmental Information, an arm of US weather agency National Oceanic and Atmospheric Administration, at least 26 per cent of India is under drought. The NCEI pointed to reports that said South-East Asia is also reeling under drought due to the El Nino weather phenomenon. 

 

El Nino impact

In particular, it said Indonesia’s rice production will likely drop by 2 per cent to 30.90 mt. Other reports said Thailand is attempting cloud seeding though its Agriculture Ministry is worried over El Nino impact on rice production. 

 

El Nino has impacted India’s south-west monsoon as a result of which it ended up in a nearly 6 per cent deficit. However, the rains have not been evenly spread, affecting kharif crops as a result. 

 

The Ministry of Agriculture has estimated kharif rice production at 106.31 mt this year compared with 110.51 mt last year. India’s rice export curbs are to ensure domestic food security. 

 

After the successful export of varieties of agricultural products like mango, fresh green vegetables, and marigold flowers, the water chestnuts from the local ponds in Varanasi are all set to hit the Gulf markets with their first consignment soon to go.

 

The first consignment of 400 kg water chestnut is being sent to Dubai.

 

Following Prime Minister Narendra Modi’s call for ‘vocal for local’ and ‘Atmanirbhar Bharat’, the Agricultural and Processed Food Products Export Development Authority (APEDA) has been focusing on the promotion of exports of locally sourced indigenous and ethnic agricultural products.

 

'We are sending the first consignment of the locally produced water chestnuts to the UAE,' said a senior official of the APEDA, an apex body under the Ministry of Commerce & industry.

 

APEDA chairman Abhishek Dev emphasized the immense potential of agricultural products exports from Uttar Pradesh and said the APEDA is making all possible efforts to promote agri-export in Purvanchal region, especially in Varanasi, and will continue to do so.

After successful conclusion of a preliminary free trade agreement (FTA) last year, India and Australia have started discussions to take bilateral ties forward in areas such as digital trade, micro, small and medium enterprises (MSMEs), traditional knowledge, labour, and sports, two people aware of the development said.

 

New Delhi and Canberra concluded the seventh round of talks regarding a comprehensive deal on October 20, agreeing to pursue negotiations on five tracks and 14 new areas, including digital trade, government procurement, MSMEs, traditional knowledge, sports, gender, environment, innovations, space, labour, and competition policy, they added requesting anonymity.

 

'While each partner has identified potential areas of cooperation, both will finally converge on areas of common interests, and take the negotiations further. Meanwhile, formal talks on five tracks – remaining goods, services, digital trade, government procurement, product-specific rules of origin (ROO-PSRs) -- have been progressed fast,' one official said.

 

GRAF ON 2+2

 

According to official data of the commerce ministry, India’s exports to Australia jumped 17% to $4.9 billion in the first six months (April-September) of 2023-24 while imports fell by 24.6% to $8.3 billion. India key exports to Australia are petroleum products, pharmaceuticals, iron and steel products, electrical machinery, and garments. Its chief imports are coal, gold, iron ore, pulses and minerals. 'Most of the imports are feeding to our domestic industries as raw materials,' the second official said.

 

After operationalising the Economic Cooperation and Trade Agreement (ECTA) with Australia in December last year, the two partners agreed to pursue a wider deal, a Comprehensive Economic Cooperation Agreement (CECA) and have been working on its contours since February. India and Australia are looking to enhance the scope of ECTA, signed on April 2, 2022, and ratified by parliaments of the two countries last November. During Prime Minister Narendra Modi’s visit to Australia in May, he and his counterpart Anthony Albanese reiterated their commitment to concluding CECA by the end of this year.

 

'The talks for expanding scope of ECTA proves that the deal is mutually beneficial and has immense potential to grow further,' the second official said. The impact of FTA between India and Australia is visible. Australia has become India’s 10th top export destination in April-October 2023 with exports of $5.48 billion, with about 16% year-on-year growth, he added. According to the Australian trade department, in 2022 India was Australia’s 6th largest trading partner with two-way trade in goods and services valued at $46.5 billion.

 

The comprehensive FTA will take economic ties between the two countries to a strategic level as Australia is expected to offer assured supplies of critical minerals such as lithium and cobalt to India without any disruption, the second official said. The two sides will, however, have to deal with tricky issues such as Australia’s demand for greater access to India’s market for its wines and agricultural products, the officials said.

The UK's demand of a higher level of protection for its GI products from the agriculture sector under the proposed free trade agreement (FTA) with India remains an unresolved issue as the talks for the pact are on to iron out differences, an official said.

 

British GI (Geographical Indication) products include Scotch whisky, Stilton cheese and Cheddar cheese.

 

A GI is primarily an agricultural, natural or manufactured product (handicrafts and industrial goods) originating from a definite geographical territory. Typically, such a name conveys an assurance of quality and distinctiveness, which is essentially attributable to the place of its origin.

 

Once a product gets this tag, any person or company cannot sell a similar item under that name. India normally provides general protection for violation of GI rules, but the UK is seeking a higher level of protection, the official, who did not wish to be named, said.

 

'Negotiations are going on between the two countries. There are some issues pending in the intellectual property rights (IPRs) chapter,' the official added.

 

According to experts, the Trade-Related Aspects of Intellectual Property Rights (TRIPS) under the World Trade Organisation outlines an elevated level of protection for GIs.

 

This enhanced protection prohibits the use of a GI if the product does not genuinely originate from the designated area, regardless of whether the public is misled or the true origin is specified. This ensures complete protection of a GI, safeguarding its reputation under all circumstances.

 

It also prohibits the use of terms like 'kind', 'style', and 'type' for products that fall under this protection. Currently, this higher level of protection is exclusive to wines and spirits.

 

GI is an intellectual property right. On this subject, under a free trade agreement, normally two countries include rules prescribed in the TRIPS and do not go beyond that.

 

Nilanshu Shekhar, founding partner at law firm KAnalysis, said Indian legislation does not differentiate between wines and spirits, and other products in terms of GI protection, and the decision to grant higher protection rests with the central government and varies based on international recognition.

 

India has been advocating for extended protection to other products beyond wines and spirits to prevent misuse of its labels like Basmati rice by other countries.

 

'The UK's interest in securing higher-level GI protection for more products in the proposed FTA with India predominantly benefits its strong export segments of wines and spirits, dairy products etc. As FTAs are based on mutual benefits, India should negotiate firmly for the UK to offer similar elevated GI protection to Indian products to a higher range of Indian products too,' Shekhar said.

 

He said that this approach would create a more balanced and reciprocal trade relationship, potentially opening new markets and enhancing the global standing of Indian products.

 

A higher level of GI protection for products like cheese will create problems for Indian companies, hence, New Delhi should not accede to the demand unless the UK is reciprocating equally in this or another department, he added.

 

Sharing similar views, expert on internal trade and WTO-related issues, Abhijit Das said: 'If the UK is demanding a higher level of protection for its GIs, Britain must be willing to give a higher level of pro-action to our GIs as well. But, there could be some adverse consequences for cheese manufactured by Amul in India'.

 

The famous Indian goods carrying GI tag include Basmati rice, Darjeeling Tea, Chanderi Fabric, Mysore Silk, Kullu Shawl, Kangra Tea, Thanjavur Paintings, and Kashmir Walnut Wood Carving.

 

Commerce Secretary Sunil Barthwal has recently stated that India and the UK are not working under any deadline for the conclusion of negotiations for a free trade agreement as both sides are discussing issues 'slightly' complex in nature. India and the UK launched the talks for the agreement in January 2022.

Oilmeals exports rose 36 per cent last month to nearly 2.9 lakh tonnes on higher shipments of soyabean meal and rapeseed meal, according to industry data.

Solvent Extractors' Association of India (SEA) data showed that the export of oilmeals in October stood at 2,89,931 tonnes as compared to 2,13,153 tonnes in the same month last year.

 

Soyabean meal export rose to 87,060 tonnes last month from 40,196 tonnes in the year-ago period, while shipment of rapeseed meal increased to 1,69,422 tonnes from 98,571 tonnes during the period under review.

'Foreign demand for Indian soyabean meal has benefited from improved price competitiveness and the shortage of Argentine export supplies in recent months,' SEA said.

 

'The major consumers of Indian soyabean meal are South East Asia, where India has a logistic advantage and also can supply in small lots,' SEA Executive Director B V Mehta said.

Also, Indian Soybean Meal being Non-GMO has an advantage and is preferred by certain European countries and the US, he added.

During the April-October period of this fiscal, the total export of oilmeals increased 30 per cent to 25,66,051 tonnes as compared to 19,75,496 tonnes in the corresponding period of the previous year. Soyabean meal export jumped to 6,73,910 tonnes in the first seven months of this fiscal from 1,61,534 tonnes in the year-ago period.

The district agriculture department will establish a strawberry cluster in 30 tribal hamlets near Bhimashankar, some 120km from Pune.

Like Mahabaleshwar, the weather and geographical conditions are suitable here to grow the berry. Hamlets in the backwaters of Dimbe dam have conducive weather conditions to grow them.

Agriculture department officials said that they will impart training to these farmers and the tribal development department will provide grants to cultivate the berries.

 

District agriculture officer Sanjay Kachole told TOI, 'We have collected soil from some villages and will recommend and identify ideally suited based on the results.'

 

This is not the first time that the government has planned such a venture here. A similar scheme launched for tribal hamlets in 2008-2009 found a handful of farmers for it. However, they could not sustain production as government grants and market facilities were lacking, agriculture officials said.

Hiraman Sevale, former Ambegaon tehsil agriculture officer, who encouraged tribal cultivators to cultivate strawberries then, told TOI, 'The temperatures in the hamlets in the backwaters of the dam are less than 20 degrees celsius in winter, suitable for growing strawberries. Some farmers can cultivate them if they get grants and marketing opportunities also.'

 

The only market for the fruit is Bhimashankar where devotees from across the country visit the temple which does not have the potential for huge customers.

 

Nilgiris farmers pen success story in apple cultivation

A group of farmers in the Nilgiris region of India have successfully grown apples in the village of Kookkal in Kotagiri. They plan to expand apple cultivation to all Badaga villages in the area. Over 120 farmers brought apple saplings from Kashmir and planted them on an experimental basis. Today, 50 of the saplings are bearing fruit. The farmers also aim to reintroduce orange, peach, pear, and apricot cultivation to the region, which was once famous for these fruits.

Cultivate land or it may be lost to outsiders

Goan farmers are being encouraged to take advantage of agriculture department schemes in order to boost their family income and prevent non-locals from taking over fallow land, according to agriculture minister Ravi Naik. At an agricultural awareness camp, it was highlighted that agriculture can be profitable, with a focus on organic farming. Other issues discussed included the protection of bundhs to prevent flooding, giving control of agriculture activity to village panchayats, and reforms in the sector. Around 150 farmers attended the camp, which was blessed by a local priest and inaugurated by Naik.

Canacona tribals to finally get market complex

The scheduled tribe community in Gaondongrim and Cotigao villages in Canacona, India, have been engaged in farming and horticulture for centuries. However, they have never had a market yard for selling their produce, forcing them to sell by the highways or travel to the market in Chaudi. To resolve this issue, the Gaondongrim panchayat has decided to construct a new market complex in the village using funds allocated by the state government. The market complex will provide employment opportunities for the youth and is planned to be named after a local freedom fighter.

The food authority has issued an order superseding the previous order about FSSAl’s certificate to the Rapid Analytical Food Testing (RAFT) kits /equipment /methods for use in both screening and surveillance purpose.

 

According to the FSSAI, a Certificate of Conformance is subsequently issued to the applicant which is valid for a period of three years from the date of issue after the RAFT kit is approved.

 

Now it has been decided that the applicants may use 'RAFT Logo' (as approved by the FSSAI) along with certificate number, validity period and 'barcode of the certificate' on the approved RAFT kits /equipment /methods.

 

In case of a kit can be used for multiple parameters, but approval was given for only one or few parameters, the applicants are now required to put a disclaimer - 'The ......... ... (name of RAFT kit/equipment/method) has been approved by FSSAI (RAFT) only for testing of ..... (list of approved parameters) in .........( list of approved food categories/matrices)'.

 

Satyen K Panda, advisor, QA, FSSAI, said, 'The applicants should ensure that Certificate number and validity must be as mentioned on the certificate.'

The utilisation of the India-Australia Economic Cooperation and Trade Agreement (ECTA) by Indian exporters has reached 77 per cent during the first nine months since the implementation of the interim trade deal, according to official data.

 

This means that during the January-September period, of the total value of trade eligible for concessional tariffs under the trade agreement, 77 per cent of the value of Indian goods is being exported using the preferential or ECTA route.

 

For Indian exporters, sectors that have benefited from the trade deal include iron and steel products, linens, agricultural products, and electrical conductors.