The US Department of Agriculture on Nov. 7 projected area planted to soybeans to expand in 2024, but wheat and corn planting areas were forecast to decline. The forecasts were contained in early-release tables from the USDA Agricultural Projections to 2033 report, which will be issued in February 2024.

 

The USDA forecast area planted to all wheat for harvest in 2024 at 48 million acres, down 1.2 million acres from 49.6 million acres in 2023. The 2024 forecast compared with 46.4 million acres as the recent five-year average planted area. The USDA’s first all-wheat planted area estimate was 77.44 million acres in 1919. Planted area has been smaller than 50 million acres since 2016. The record-high all-wheat planted area was 88.3 million acres in 1981. The record-low all-wheat planted area was 44.45 million acres in 2020.

 

The USDA projected area planted to corn in 2024 at 91 million acres, down 3.9 million acres, or 4%, from 94.9 million acres in 2023. The corn area forecast would be the smallest since 88.6 million acres in 2022 and compared with the recent high planted area of 97.3 million acres in 2012 and the recent five-year average planted area at 91.4 million acres. The USDA began to estimate corn planted area in 1926. The record high area was 113 million acres in 1932. The record low area of 60.2 million acres was planted in 1983.

 

The USDA forecast soybean planted area in 2024 at 87 million acres, up 3.4 million acres, or 4%, from 83.6 million acres in 2023. The projection for 2024 compared with the recent five-year average planted area at 83.5 million acres. The record-high soybean area at 90.2 million acres was planted in 2017.

 

The USDA projected area planted to rice in 2024 at 2.8 million acres, down 97,000 acres, or 3%, from 2.9 million acres in 2023. The 2024 forecast compared with 2.6 million acres as the recent five-year average.

 

The USDA projected the area planted to oats for harvest in 2024 at 2.6 million acres, the same as in 2023, 2022 and 2021. That compared with the recent high acreage of 3.1 million acres in 2015 and compared with the recent five-year average at 2.7 million acres.

The Uttar Pradesh Interstate Waterways Bill-2023 was approved by the state cabinet on Thursday, paving the way for the formation of a body that will regulate and monitor tourism and transport through the state's rivers.

 

Chief Minister Yogi Adityanath announced that the bill will now be sent to the Assembly, after which it will become an act.

 

Sources indicated that it was likely to be tabled in the upcoming Winter Session, which is due to start on November 28.

 

'Ganga, Yamuna and other rivers in UP account for 11 national waterways. It has been decided to constitute this authority for promotion and regulation of water transport and tourism,' said an official.

 

The CM will appoint a head of the authority which could either be a specialist in waterways, shipping, maritime etc or the minister of transport. The vice chairperson, to be appointed by the state government, will also be an expert. 

 

Additional chief secretaries and principal secretaries of departments like finance, public works, tourism, transport, culture, forest and environment, and irrigation will be its members.

 

 

'It was said about UP that it is a land locked state. Those countries which have waterways have progressed. Even within the country, those states were progressing which had waterways, as it provided export facilities. We are all grateful to Prime Minister Narendra Modi who started the country's first inland waterway between Varanasi and Haldia. The Inland Waterway Authority will help in promoting water transport in UP. It will also promote water sports, increase tourism facilities and help in developing UP as an export hub,' the CM said. He added that Ayodhya was very important from this point of view of a waterway because, as it is reported that 2,000 years ago princess of Ayodhya had gone to South Korea by the water route to marry the prince.

 

'Similar facilities can be developed in all the rivers like Ganga, Yamuna, Saryu, Rapti and Gomti. Therefore, this authority will work together with the Government of India and facilities will be developed to supply UP's traditional products to the world market,' Yogi said.

Minister of State for Agriculture and Farmers’ Welfare Shobha Karandlaje interacted with the Brazilian delegation led by Minister of Agriculture, Livestock and Food Supply Mr Carlos Favaro.

 

Shobha Karandlaje showed gratitude for supporting the Indian Presidency during the G20 Agriculture Working Group Meetings and expressed regret for the Minister’s absence and inability to attend the G20 Agriculture Minister’s Meeting at Hyderabad. She expressed happiness that the visit would further strengthen India-Brazil’s rapidly growing cooperation in the agriculture sector. She said that both countries have a flourishing bilateral agriculture trade, and further cooperation can be strengthened in food processing, agro-industry, and agricultural research and development.

 

The Indian Minister further said that the demand for avocados is growing in India, which provides an opportunity for India to import avocados from Brazil. She assured that India will extend its full support to Brazil for a successful G20 Presidency. She also expressed happiness that Brazil is establishing a task force, the Global Alliance against Hunger and Poverty, which aligns with the India Presidency’s Deccan High-Level Principles on Food Security and Nutrition align with this task force.

 

Mr Carlos Favaro thanked India for a friendly reception and conveyed warm greetings from President Lula. He underscored Brazil’s strong commitment to enhancing relationships within the BRICS framework with the Global South and the Middle East. Brazil prioritizes environmental protection while emphasizing that environmental concerns should not hinder international trade. Brazil articulated its intent to increase food production and expand its agricultural area without resorting to deforestation or harming the environment.

 

Mr Carlos Favaro emphasized that Brazil and India face similar challenges in the agricultural sector, and hence, both countries can find standard solutions to mitigate these challenges. The fight against hunger is a paramount focus for Brazil, and they expressed a desire to collaborate with India through technology transfer, knowledge sharing, and cooperative efforts with India to fight hunger.

 

Brazil anticipates receiving India’s specific interests and demands, which can be addressed at the institutional level by both countries. The promotion of bilateral trade was highlighted with Brazil’s willingness to open its market to various agricultural products and expedite Sanitary and Phytosanitary (SPS) related negotiations to facilitate trade. Brazil’s delegation extended an official invitation to India for the forthcoming 2024 G20 presidency.

 

Other members of the Brazilian delegation shared insights into their agricultural best practices, including the use of drip irrigation in the horticulture sector, underscoring the importance of collaboration in fruit production.

 

The president of Apex Brazil shared that the existing trade relations between India and Brazil need to be commensurate to the potential of both nations. Apex Brazil is undertaking a mapping exercise of investment opportunities in both countries and encouraged the Ministry of Agriculture and Farmers’ Welfare to provide their insights.

 

Concluding the session, the Secretary of the Department of Agriculture and Farmers Welfare mentioned the possibility of forming a joint working group between the Department of Agriculture and Farmers Welfare and the Department of Animal Husbandry and Dairying to facilitate more efficient future discussions with Brazil. They also outlined plans to compile a list of collaboration points, which Brazil would also do in parallel. India will appoint a senior officer to lead the development of the relationship, with the creation of agenda points for the effective implementation and monitoring of actionable items. They aim to identify common issues and areas for collaboration promptly.

India is considering a plan to allow surpluses in Special Rupee Vostro Accounts (SRVAs) to be invested in corporate bonds in order to give a push to international trade settlement in rupees. Under existing regulations, investment from SRVAs is restricted to government securities and treasury bills.

 

'We have received some recommendations after deliberations with all stakeholders, including banks and trade bodies,' an official said. 'They are being examined.' It has been suggested that allowing investment in corporate bonds through SRVAs will attract more such bilateral agreements, he said. A vostro account is held at a bank on behalf of another lender that's typically located in a foreign country.

 

Earlier this year, Russian officials said that Moscow had accumulated billions of rupees in Indian banks that couldn't be used. Industry estimates peg this amount at $7-8 billion. Until July 2, the RBI had approved 34 applications from different Russian banks for opening SRVAs in 14 Indian commercial lenders.

 

Around 90% of the transactions with Russia are through Sberbank India. An industry executive said annual trade through the SRVA route is pegged at around Rs 8,300 crore, of which 70% is exports with mostly medium and small enterprises using the facility. 'There is an apprehension among Russian companies on the rupee-ruble exchange rate, especially when the money would be remitted back to Russia after being invested in government securities,' said the executive cited above. 'They may find it attractive to invest in corporate bonds in that case.'

 

Another executive said a review with banks and financial institutions will be held later this month on the challenges of promoting bilateral payments through the SRVA mechanism. Earlier, the finance ministry had advised banks to form a working group to look into the reasons impeding the widespread adoption of the mechanism and suggest ways to make it popular. 'The government is not satisfied with the progress made, and we will be soon submitting our report,' said the executive.

Union Minister of Commerce and Industry, Consumer Affairs, Food & Public Distribution and Textiles, Shri Piyush Goyal will visit San Francisco, United States of America, from 13th to 16th November 2023 to attend the various official engagements of Indo-Pacific Economic Framework (IPEF) and the Asia-Pacific Economic Cooperation (APEC). He will also interact with eminent business persons, prominent academics, US officials and industry leaders during the visit to further strengthen economic and commercial relations partnership between the two nations. 

 

The Commerce and Industry Minister will participate in the third in-person IPEF Ministerial meeting from November 13-14, 2023, which is likely to see significant updates on the progress of negotiations. The Minister will also hold bilateral meetings with the US Secretary of Commerce, USTR and Ministers from other IPEF partner countries on the sidelines of the IPEF Ministerial. 

 

The Minister would be representing India at the Partnership for Global Infrastructure and Investment (PGII) - IPEF Investor Forum meeting on November 16, 2023. The Minister would also be representing India at the APEC Economic Leaders Engagements from November 15-16, 2023. India has been invited to the 30th APEC Economic Leaders’ Meeting 2023 as a Guest Economy. 

 

During the visit, the Commerce and Industry Minister will have bilateral meetings with US Commerce Secretary, Ms. Gina Raimondo, USTR, Ms. Katherine Tai and representatives from various sectors and industries. These meetings will focus on addressing trade barriers, promoting investments, and fostering greater cooperation in areas such as technology and innovation. 

 

One of the key focus of the visit will be the joint event, co-chaired with US Commerce Secretary, Ms. Gina Raimondo on 'India-USA Innovation Handshake Initiative', with the aim to lift up and connect the two sides’ dynamic startup ecosystems, address specific regulatory hurdles to cooperation, and promote further innovation and job growth, particularly in emerging technologies. 

 

The Commerce and Industry Minister will also participate in the investors roundtable along with one-to-one meetings with CEOs. He will also interact with various stakeholders such as students, entrepreneurs, venture capitalists and Indian diaspora etc. Shri Goyal is expected to interact with globally renowned technology, entrepreneurship, and academic communities in the Bay Area, specifically, in the Silicon Valley to undertake focused discussions with American companies looking to invest or expand in India across sectors - Electronics (including Semiconductor), Technology, FinTech etc.

 

Prime Minister Shri Narendra Modi attended the IPEF launch event along with President of the United States, Mr. Joe Biden; Prime Minister of Japan, Mr. Kishida Fumio; and other partner countries of the Indo-Pacific region on May 23, 2022 at Tokyo. In the first-ever in-person Ministerial meeting in September 2022, Pillar-wise Ministerial statements were issued outlining the broad contours of text-based negotiations. In December 2022, negotiations on all the four Pillar Agreements were launched and in May 2023, negotiations on the Pillar-II Agreement were substantially concluded. 

 

The IPEF seeks to strengthen economic engagement among partner countries with the goal of advancing growth, peace and prosperity in the region. The framework is structured around four pillars relating to Trade (Pillar I); Supply Chains (Pillar II); Clean Economy (Pillar III); and Fair Economy (Pillar IV).  

 

India is committed to a free, open and inclusive Indo Pacific Region and would work towards deepening economic cooperation among partners for growth and prosperity of the region. The framework is inclusive and allows flexibility to partner countries to associate with pillars based on their respective priorities.

 

Both India and USA are natural partners and have trade complementarities, long standing strategic and economic relationship, people to people contact, and both are vibrant democracies too. The two countries are also collaborating under other frameworks such as QUAD and I2U2 (India-Israel/ UAE-USA). Regular exchanges at the leadership-level have been an integral element of the expanding bilateral engagement. The visit reflects the determination to forge strong and mutually beneficial trade and investment relationships that will not only benefit the economies of both India and the USA but also contribute to the overall prosperity and welfare of their respective citizens. 

India's soymeal exports are likely to rise in coming months as concerns over soybean output in top producer Brazil lifts global prices to two-month highs, prompting buyers to turn to the south Asian country, industry officials said.

The revival in the exports of the animal feed could boost soybean crushing in India and the availability of soyoil, which could reduce imports of soyoil and palm oil by the world's biggest buyer in coming months.

 

Indian soymeal has become attractive because of the rally in U.S. soymeal prices, Hemant Jain, an exporter in Indore in the central state of Madhya Pradesh told Reuters.

 

'Until last month only Bangladesh, Iran and Nepal were making purchases. Now even Vietnam and other Asian countries have started making inquiries.'

US soymeal futures jumped 20% in five weeks as erratic weather has caused problems in the world's No. 1 exporter Brazil.

Indian traders have contracted to export around 300,000 metric tons of soymeal for shipments in November and December, mostly to Bangladesh, Iran, Nepal and Vietnam, traders said.

Anticipating export demand, soybean and soymeal prices in India surged in the last week, making exports less competitive, said Manoj Agrawal, managing director of Maharashtra Oil Extractions.

'There is an opportunity to export a good amount of soymeal in the next three months, but to make that happen, Indian prices need to remain on par with global prices,' Agrawal said.

 

While soymeal prices have improved, soyoil prices are under pressure because of record inventories of imported soyoil, effectively reducing soybean crushing margins, said a New-Delhi based dealer with a global trade house.

'Soybean crushing is on the rise, and there's a good demand for exports and from the local poultry industry. This will beef up our domestic soyoil supplies and put a cap on imports,' he said.

Union Minister for Commerce and Industry, Consumer Affairs, Food & Public Distribution and Textiles, Shri Piyush Goyal in his inaugural address at the 'DPIIT-CII National Conference on Ease of Doing Business' held in New Delhi yesterday said that Aspirational Young India will spur the future growth of India.

 

Shri Goyal said that the foundational economic reforms undertaken by the Government has ensured that India moved from fragile 5 to top 5 economies in the last 5 years. The Minister lauded the Industry for supporting the national initiative of Ease of Doing Business (EoDB) and said that the Government is working to take EoDB to the next level.

 

'National Conference on Ease of Doing Business' was held at New Delhi on 8th November 2023. Department for Promotion of Industry and Internal Trade (DPIIT), a nodal department for Ease of Doing Business organized the conference in association with Confederation of Indian Industry (CII).

 

The Conference covered many important areas relating to Ease of Doing Business. Sessions regarding Ease of Doing Business way Forward, National Single Window System, Strengthening Dispute Resolution mechanism, Easing Paying Taxes and customs procedures were part of the conference. Sessions involved participation from representatives of States, Central Ministries and industry.

 

Session 1 on EODB Reforms – Journey so far and way forward was chaired by Secretary, DPIIT, Shri Rajesh Kumar Singh.  Secretary, DPIIT in his keynote address covered initiatives by DPIIT related to EODB (state rankings and reforms), NSWS, minimizing compliance burden (Jan Vishwas Bill), Preparations for Jan Vishwas Bill 2.0, Cost of regulation and briefed on upcoming World Bank B-Ready framework. He further encouraged the industry to work more closely on all initiatives and share suggestions. Mr. Ajay Shriram, MD, DCM Shriram Limited and Mr. Sunil Kant Munjal, Chairman, Hero enterprise shared industry concerns. Shri Navneet Mohan Kothari, MD, MP Industrial Development Corporation, Govt. of MP and Shri Sandeep Sagle, Commissioner, Industries and Commerce department, Govt. of Gujarat made presentations on States’s best practices, effective and simplified Single window portal and implementation of EODB reforms.

 

Session 2 on National Single Window system – One stop solution for all approvals/renewals was chaired by Joint Secretary, DPIIT, Ms. Manmeet Nanda. She encouraged the industry members and SMEs to utilize the National Single Window system for obtaining complete guidance on identifying and applying for approvals according to the business requirements. She also sought feedback for improving user experience and to achieve the goal of making this platform a true, genuine National Single Window. Senior government officials from the State governments of Uttar Pradesh, Nagaland and Central Ministries (Ministry of Labour & Employment and Ministry of Environment, Forest and Climate Change) addressed the audience and enumerated various initiatives led by their respective departments enabling ease of doing business and highlighted on the positive feedback received from the industry users from ease of usage post the integration of respective departmental services on NSWS.

 

In Session 3, strengthening dispute resolution mechanism, discussions were held on streamlining the enforcing contracts mechanism, Decriminalization of Business Laws, Strengthening the role of Alternate Dispute Resolution (ADR) Ecosystem. For Decriminalization, it was highlighted that discussions have been held on future implementation of retrospective applications of provisions that would be beneficial in reducing burden on courts. The discussions revolved around reducing the government litigation through systematic change in attitude and delaying of cases by officers, restricting the time for arguments and looking into limiting the number of adjournments, increasing the number of courts, tribunal and judges.

 

In Session 4, Easing Paying Taxes and Customs Procedures, discussions were held on Minimizing Tax Litigation, improving processes involved in refund/credit/returns, Rationalizing Procedural Compliances in GST, Streamlining and expediting the Customs processes and procedures.

Driven by the heightened international demand and price rise, the export of basmati has been on the upswing for the third consecutive year. The ascending prices of long-grain premium basmati varieties in global markets have yielded substantial profits for traders and farmers.

 

The export statistics provided by the Agricultural and Processed Food Products Export Development Authority (APEDA) underline the growth trajectory of India’s basmati rice, with exports and trade steadily expanding year after year. Between the April-August periods of 2021-22 and 2023-24, the rice trade in international markets has witnessed a staggering 71 per cent upswing, generating a whopping Rs 7,620.32 crore. In the current fiscal, the basmati exports have reached Rs 18,310.35 crore, with the country exporting 20.10 lakh metric tonnes (LMT).

 

In comparison, the corresponding period in 2022-23, saw the basmati rice exports of Rs 15,452.44 crore, with the shipping of 18.75 LMT. Similarly, in 2021-22, India exported 17.02 LMT of basmati rice, generating Rs 10,690.03 crore. The export swelled despite a broader decline in India’s agricultural exports, attributed to the government’s restrictions on wheat, non-basmati rice and sugar exports. The All India Rice Exporters Association (AIREA) reports an optimistic outlook for global rice production, anticipated to reach 54.225 million tonnes, mainly attributable to improved yields in both India and Brazil.

 

Vijay Setia, the former president of AIREA, says: 'Export of basmati rice is on the rise, and traders are highly active due to growing demand. We anticipate a substantial uptick this year, underscored by a surge in orders from Middle Eastern nations, signifying positive market dynamics'.

 

Ongoing paddy harvest in key basmati-producing states like Haryana, Punjab, and Uttar Pradesh has been particularly lucrative for basmati growers, with traditional basmati prices exceeding beyond Rs 6,000 per quintal, and other premium varieties like Pusa 1121, 1718, and Moochal fetching around Rs 4,500 per quintal. The sudden spike in Basmati paddy in grain markets of northern parts of the country followed the Central Government’s decision to reduce the minimum export price (MEP) for long-grain basmati rice from $1,200 per tonne to $950 per tonne on October 23.

 

The average export prices of basmati rice in international market has witnessed a sudden increase in the past one year as it has reached to around $1,050 per tonne against $850-900 per tonne in 2021 and 2022. But, the spike in export is likely to affect the basmati rice prices in the domestic market as well, as the traders are focused on exports.

The India Pavilion at the Gulf Food Manufacturing Expo in Dubai has become a focal point for visitors, as it displays a wide array of value-added agro products and packed foods. The three-day event, which started on November 7, is hosting 157 Indian exhibitors who are showcasing India's prowess in the food and beverage industry.India, known for its diverse agro-based products and culinary richness, is making its presence felt at this international platform. The Indian Food and Beverages market, which reached $299 billion in 2022, is expected to surge to over $620 billion by 2029, marking an impressive growth rate of 11%.

 

The products on display include basmati and non-basmati rice, Spices, coarse grains, maize, groundnut, wheat, cereal preparations, processed vegetables, fresh fruits, vegetables, and other value added products. Furthermore, there are opportunities for substantial investments in food processing technologies, skills, equipment, canning, dairy, specialty processing, packaging, frozen food, refrigeration, and thermos-processing The India Pavilion of Gulfood Manufacturing was inaugurated by the Consul General of India at Dubai, Satish Kumar Sivan.

 

The Government of India is constantly working towards diversifying its export basket and enhancing its export presence in world trade. To further strengthen the food & beverage sector, the government has established 60 fully equipped agri-export zones (AEZs) in addition to 42 mega food parks and 128 cold chains to boost agricultural and food processing exports. Moreover, with the advent of technology, the food industry ecosystem in India is undergoing a radical shift in adherence to international quality and hygiene norms. 

 

In terms of exports, India has seen significant growth in fresh fruit and vegetable exports valued at approximately $1.63 billion in 2022-23, with animal product exports reaching about $4.04 billion and cereal exports totaling $13.87 billion in the same period. India also ranks third in global egg production and eighth in meat production, with substantial growth trends in both sectors.

 

The Gulfood Manufacturing Expo in Dubai , with over 3,000 exhibitors from 80 countries, has attracted more than 36,000 delegates from across the global food industry, making it a significant gateway to the Middle East and Africa (MENA), one of the world's fastest-growing food markets. The MENA region's growing population with increasing disposable incomes has created a strong demand for high-quality, innovative food and beverage products. The expo will continue until November 9, 2023.

As a part of Govt of India initiative for market intervention to control the retail price of rice, wheat and atta, weekly e auctions of both wheat and rice are organized. The 20th e-auction was held on 08.11.2023 wherein 3 LMT wheat and 2.25 LMT rice was offered under OMSS(D) and 2.85 LMT wheat along with 5180 MT rice was sold to 2316 bidders.

 

The weighted average selling price was Rs. 2327.04/qtl for FAQ wheat against the reserve price of Rs. 2150/qtl Pan India whereas weighted average selling price of URS wheat was Rs. 2243.74/qtl against the reserve price of Rs. 2125/qtl.

 

In addition to the above, 2.5 LMT wheat has been allocated to Semi-Government and cooperative organizations like Kendriya Bhandar / NCCF / NAFED under OMSS (D) for converting said allocated wheat to atta and offer it for sale to the public under 'Bharat Atta' brand at an MRP not exceeding Rs. 27.50/Kg.  Till 07.11.23, 6051 MT wheat has been lifted by these 3 Cooperative societies for further conversion into atta.

 

The traders are kept out from the ambit of wheat sale under OMSS (D) and till 07.11.23, 1851 random checks have been made across the country in order to avoid hoarding of stocks.