Organic farming is catching on in India, thanks to a growing preference for healthier, sustainable food choices

 

Sikkim is India’s first and only State to attain 100% organic farming status.

 

Now, the Nilgiris in Tamil Nadu is aiming to become the first organic district in the south by 2030

 

It’s been 200 years since the British introduced exotic vegetables such as potato, carrot, cauliflower, and plantation crops like tea, coffee in the Nilgiris district.

 

Gopalakrishnan, who has returned to India from the United States, is practicing organic farming near Ooty.

 

In a one-acre plot at Kuruthikuli village, Gopalakrishnan has planted 10 varieties of greens, Broccoli, beetroot, Bok choy, cauliflower, carrot, cabbage, Kale, radish, peas, double beans, celery, turnip, potato, Parsley, chamomile and medicinal plants.

Sugar prices in the UAE have increased by up to eight per cent in the past couple of months due to a surge in global prices.

 

But UAE prices are expected to drop soon as India is set to export sugar under an arrangement through the National Cooperative for Exports Ltd (NCEL), which was established to help cooperative societies tap the global export market and support them to produce and manufacture products that are in line with international standards.

 

India has imposed a ban on sugar exports in order to keep local prices in check. However, the ban does not apply to exports to the European Union and the US. Under this new NCEL mechanism, the government will directly deal with farmers and export the commodities, doing away with the need for middlemen. The UAE could also be added in the list of countries under NCEL where India could export its sugar.

 

Dr. Dhananjay Datar, chairman and managing director, Al Adil Trading, said the current stock being sold in the market is mainly imported from Brazil.

 

'There has been an eight per cent increase in sugar prices locally in the past two months. But once the Indian sugar arrives in the local market, prices will go down,' Dr Datar told Khaleej Times in an interview on Monday.

 

Sugar prices are trading at the highest prices since 2011 globally due to lower supplies after unusually dry weather damaged harvests in India and Thailand, the world's second and third-largest exporters. The UN Food and Agriculture Organization also warned about a 2 per cent drop in global sugar production in 2023-24, compared with the previous year, a loss of about 3.5 million metric tons.

 

Kamal Vachani, group director and partner at Al Maya Group, said the UAE has been traditionally importing sugar from Brazil, India, Thailand and some parts of Europe.

 

'These regions have been the constant supplier of sugar to the UAE as these countries’ production capacity and trade relations are good. The global sugar prices in the current scenario can import from Mexico, Australia and even some African nations that have been increasing sugar production from time to time,' he said.

 

Vachani added that the UAE is in a comfortable position when it comes to sugar stock.

 

Dr. Datar added that Thailand and Germany are the other markets that could be tapped to import sugar.

With the thorny bush of sea buckthorn, used in Ladakh for medicinal and other purposes, getting Geographical Indication (GI) tag recently, the administration has started making efforts to increase the production of the much sought-after berries. As per official records, at least 600 tonnes of sea buckthorn berries are harvested in Ladakh annually. This is the fourth product from Ladakh to get the tag. Sea buckthorn is mostly used in making juice, squash, soaps and also in traditional medicines due to high Vitamin-C content in it.

 

Farmers face major difficulty in harvesting the berries due to the thorn in the bushes on which they grow. A cloth is spread at the bottom of the bush and it is beaten with sticks so that berries fall on the cloth. However, most of the bushes can’t be reached for berries as they grow mostly in bunches and are not accessible due to high concentration of thorns. The berries grow in the wild in far-off areas, especially along the Indus river belt. The government has in the recent times taken initiatives by providing financial help to the farmers to grow berries on barren and uncultivable land in the UT.

 

Kunzang Wangmo, Horticulture Development Officer, Leh, who has keenly worked with farmers for increasing the harvest of the sea buckthorn, said it was included as a horticulture crop under the Mission for Integrated Development of Horticulture (MIDH) of the Union Ministry of Agriculture and Farmers Welfare in Ladakh in 2018. 'Our main aim is to use the barren land in the region where nothing grows to cultivate the berries. This will bring the land under cultivation and also become a major source of income for the farmers. The GI tag will bring much needed attention on the crop from outside world,' said Wangmo.

 

The berries are harvested in September-October every year, Wangmo informed.

 

Interestingly, sea buckthorn is grown completely organically without the use of any pesticide or other chemicals in Ladakh. Wangmo said the sea buckthorn of Ladakh is in demand by private firms outside the UT. While the primary processing of the berries is done in Ladakh, the pulp is sent to these firms for value addition.

 

As per a study by the Defence Institute of High Altitude Research (DIHAR) due to scarcity of resources, sea buckthorn has been used traditionally for a variety of purposes. 'Every part of the plant, including fruit, leaf, twig, root and thorn, has been traditionally used as medicine, nutritional supplement, fuel and fence and therefore, sea buckthorn is popularly known as Wonder Plant, Ladakh Gold, Golden Bush or Gold Mine of cold deserts,' it states.

 

Traditionally, the dense and thorny shrub was planted around agricultural field and plantation sites to protect crops from stray animals and pedestrian movement.

 

Ladakh remains the major site for sea buckthorn with over 70% of the total area (13,000 hectares) on which it is present in the country.

 

Specialised machinery needed

 

According to horticulture officials, if some specialised machinery is brought in, the production of berries from wild sea buckthorn can increase tremendously in the region.

Despite having a vast forest area, the main berry harvest is less than 6 per cent, which is 600 tonnes of the available produce.

The Reserve Bank of India (RBI) on Friday permitted banks to open additional current accounts for export proceeds in addition to special rupee vostro accounts with a view to providing greater operational flexibility to exporters.

 

To provide greater operational flexibility to exporters, banks maintaining special rupee vostro accounts as per the provisions of the RBI circular dated July 11, 2022, are permitted to open an additional special current account for its exporter constituent exclusively for settlement of their export transactions, RBI said in a notification.

 

In July 2022, the RBI had asked banks to put in place additional arrangements for export and import transactions in Indian rupees in view of the increasing interest of the global trading community in the domestic currency.

 

'In order to promote the growth of global trade with emphasis on exports from India and to support the increasing interest of the global trading community in INR, it has been decided to put in place an additional arrangement for invoicing, payment, and settlement of exports/imports in INR,' it said.

 

India has been trying to promote rupee trade following the Russia-Ukraine war and the sanctions imposed by the West.

 

In July 2022, the RBI decided to allow the settlement of India’s international trade in rupee. Accordingly, authorised Indian banks must open and maintain special rupee vostro accounts of the partner trading country’s banks.

Some of the countries that have been allowed to receive Indian white rice on government-to-government (G2G) deals are seeking waiver of customs duty on the cereal’s consignments. 

 

African countries are the main ones seeking duty-free imports of rice from India, trade sources said.

 

Customs officials imposed a 20 per cent duty on white rice consignments of 5,300 tonnes from Visakhapatnam port last month to Port Louis in Mauritius.  

 

FTA exemption

'Some of the buyers who are getting rice through G2G deals are arguing why India should impose an export duty for such deals.' an exporter said on condition of anonymity.

 

Official sources said while white rice exports, which are G2G deals since the Centre has banned its shipments, are levied a 20 per cent export duty, no tax is imposed on consignments heading to nations with which India has a free trade agreement (FTA). 'India is not imposing export duty on countries which have entered into an FTA with it. That way, there is no duty for consignments heading to Nepal, but it is imposed on those for Bhutan,' the exporter said.

 

NCEL gets mandate

In October, the government allowed exports of 10.34 lakh tonnes (lt) of non-basmati white rice to seven countries on G2G basis. The Directorate-General of Foreign Trade notification on Wednesday said the shipments would be handled by the National Cooperative Export Ltd (NCEL).

 

As per the notification, the maximum quantity of rice — 2.95 lt — was allocated to the Philippines, while Cameroon got 1.9 lt, Malaysia 1.7 lt, Cote d’Ivoire 1.42 lt, Republic of Guinea 1.42 lt, Nepal 95,000 tonnes and Seychelles 800 tonnes.

 

The Centre has allowed NCEL to handle the G2G as part of its efforts to promote cooperatives, though a section of the trade has questioned the decision. 'Despite the fact that farmer producer organisations and farmers, from whom NCEL will procure, stand to gain, Customs authorities are imposing a duty,' said the exporter.

 

Burden on poor nations

Sources said NCEL has so far exported 5,301 tonnes to Mauritius and 1,150 tonnes of rice to Bhutan. The organisation is at an advanced stage of negotiations to ship the cereal to the Philippines, Seychelles, Cameroon and Singapore. 

 

Trade sources said while policy decisions are taken by the Commerce Ministry, the duty is imposed by Customs officials, who say the orders are clear and unambiguous.

 

The 20 per cent duty on rice exports increases the landing cost of rice by $80-85 a tonne. For some of the poor African countries, this might be a burden, say trade sources.

 

Currently, Indian parboiled rice is quoted at $515 a tonne f.o.b, according to the Thai Rice Exporters Association. 

 

businessline’sHyderabad correspondent KV Kurmanath who visited Cote d’Ivoire last month reported that Indian curbs have resulted in rice prices increasing by 25-30 per cent in the African nation. Three of the top five countries importing Indian rice are in Sub-Saharan Africa – Benin, Senegal and Cote d’Ivoire – with each buying over one million tonnes in 2022.   

 

Why curbs

India has resorted to curbs on rice exports since September 2022 on food security grounds, particularly when wheat production was affected in 2022 and 2023 due to indifferent weather.

 

As a result, the Centre began distributing more rice under the public distribution system, while also trying to cool prices through such curbs. On September 8, 2022, the Centre banned exports of broken rice and imposed 20 per cent export duty on white rice shipments.

 

On July 20 this year, it banned exports of  white rice. On August 26, it imposed 20 per cent export duty on shipments of parboiled rice. However, the government clarified that it will allow exports to neighbouring and vulnerable countries.

 

Last year, kharif rice production was affected as key growing regions such West Bengal, Odisha, Jharkhand and western Uttar Pradesh received deficient rainfall. 

 

This year, too, kharif sowing was affected due to the south-west monsoon playing truant and August turning out to be the driest in over 122 years. 

 

During the 2022 kharif, rice production was estimated at 110.51 million tonnes (mt), while this year it is projected at 106.31 mt by the Ministry of Agriculture. 

Trade Minister Piyush Goyal on Friday said India and the United Kingdom (UK) would be able to resolve the pending issues for a free-trade agreement (FTA) in the coming weeks, as the remaining issues were not insurmountable.

'FTAs are crystal-gazing into the future. You have to really project how the agreement will play out in 20, 30, 50 years into the future. So they are drafted very carefully. One never rushes to do an FTA. One should do it with great care and consideration of different interests,' Goyal told news agency 

 

He said both sides were looking at issues that are of a very sensitive nature as well as very important to each other. 'We hope that in the coming weeks we will be able to come to some conclusion,' he said

The minister said both sides had several rounds of negotiations, and 20 of 26 chapters had been sealed. 'Currently, we are in active dialogue on different tracks. Amongst the few issues pending, there is nothing impossible to navigate,' he said.

On Wednesday, Commerce Secretary Sunil Barthwal told reporters that they were not working under any deadlines on the conclusion of negotiations on the FTA, citing there are issues that are slightly complex in nature and of economic significance to both countries.

'We are not working under any deadlines. Though, there are internal timelines as such, and round-wise discussions happen there,' Barthwal had said, adding that issues were being examined carefully in a roundwise manner and they were expected to finish soon.

 

Till now, 13 rounds of negotiations have concluded on the issue, and chief negotiators of India and the UK are expected to soon hold the next round of talks to iron out remaining issues, including concessions for electric vehicles (EVs) and greater market access in services, among others.

Launched in January last year, the agreement was originally scheduled to conclude by Diwali (October 24, 2022), but the deadline was missed due to several adverse developments.

On his visit to the Tesla factory in San Francisco earlier this week, Goyal said no decision had been taken on when Tesla would come to India and what role it would have in India’s private sector engagement on space.

 

'Those are for officials to look at. The purpose of my visit was very clear. I was looking at engaging with the high-quality senior-level Indian talent who are contributing to Tesla’s success story. I was also very keen to see the EV factory because we are now increasingly contributing through parts and components in the making of EVs,' he had said.

'Last year, India exported about a billion dollars' worth of goods. This year, it will almost double to $1.9 billion exports from India to Tesla. India is producing really high-quality products, spare parts, auto components, which I am sure will help us as we expand our electric auto ecosystem,' he added.

 

Goyal said as more and more companies from around the world come into India and as the homegrown Tatas and Mahindras expand their operations, India is poised to become a big market and big producer of EVs. 'The idea behind the visit (to the Tesla factory) was to understand the story and see how it is going to move forward,' he said.

The Reserve Bank of India (RBI) on Friday permitted banks to open additional current account for exports proceeds in addition to special rupee vostro accounts with a view to provide greater operational flexibility to exporters. To provide greater operational flexibility to exporters, banks maintaining special rupee vostro account as per the provisions of the RBI circular dated July 11, 2022 are permitted to open an additional special current account for its exporter constituent exclusively for settlement of their export transactions, RBI said in a notification.

 

In July 2022, the RBI had asked banks to put in place additional arrangements for export and import transactions in Indian rupees in view of increasing interest of the global trading community in the domestic currency.

 

'In order to promote growth of global trade with emphasis on exports from India and to support the increasing interest of global trading community in INR, it has been decided to put in place an additional arrangement for invoicing, payment, and settlement of exports/imports in INR,' it said.

 

India has been trying to promote rupee trade following the Russia-Ukraine war and the sanctions imposed by the West.

 

In July 2022, the Reserve Bank of India (RBI) decided to allow the settlement of India's international trade in rupee. Accordingly, authorised Indian banks must open and maintain special rupee vostro accounts of the partner trading country's banks.

 

These accounts keep the foreign bank's holdings in the Indian counterpart in rupees. When an Indian trader wants to make a payment to a foreign trader in rupees, the amount will be credited to this vostro account.

 

Similarly, in the reverse scenario, the amount to be paid to an Indian trader is deducted from the vostro account, and credited to the person's regular account.

 

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 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.

 

The production of famous Darjeeling oranges is expected to be 'steady' this winter with the department of food processing industries and horticulture drawing up plans to make value-added products from fruits which drop from trees before they become ripe.

 

Debaji Basak, the Darjeeling district food processing and horticulture officer, said: 'Field reports suggest the orange yield will be steady this winter after a rapid decline in the production over the past decade. We are now exploring the possibility of setting up fruit processing units in the hills.'

 

Officials of the department said they had noticed that almost 40 per cent of the fruit fell before they ripened.

 

'Our department wants to target this 40 per cent of the fruit. We are exploring the possibilities of setting up small units in the hills and simultaneously approaching big business houses and trade bodies to exploit the potential of the famous Darjeeling oranges,' said an official.

 

Juice, jam, jelly and marmalade are some value-added products that can be processed from oranges.

 

The Darjeeling oranges, though smaller in size, are considered superior to the Nagpur variety because they are more sweet, juicy and succulent.

 

However, the production had been declining in the hills as orange orchards were reeling from an assault of the citrus tristeza virus, greening (fungal infections), trunk borer disease and an attack by fruit flies.

 

Poor farming practices have also been blamed for the low yield.

 

According to sources in the department, the hills produced around 39 metric tonnes of oranges last winter.

 

'The figure is expected to remain the same. A few years ago, the production had dropped to almost 29 metric tonnes,' said a source.

 

Around 52 metric tonnes of oranges used to be harvested in the hills when the production was at its peak.

 

The Bengal horticulture department is also taking initiatives to increase orange cultivation in the hills. The department has distributed around 45,000 saplings to orange growers and provided expertise to them so that they can revive the fertility of their land.

 

Oranges are grown over an area of 4,150 hectares in the hills.