At least 150,000 metric tons of pigeon peas bound for India are held up at ports in Mozambique awaiting export permission from customs despite multiple requests from sellers over the past few weeks, five industry officials said on Wednesday.

 

India, the world's biggest producer and consumer of pigeon peas, relies on imports during the final quarter of the year before the new crop harvest in January. Over half of India's imports of pigeon peas are sourced from Mozambique.

 

The delay in shipments has pushed up prices of the protein-rich staple, known in India as arhar or tur, used to make daal curry in the peak-consumption festive season.

 

'Stocks are currently held in port-based warehouses and sellers are incurring huge storage and re-fumigation costs,' said Suhas Chougule, managing director at MozGrain Lda, a local subsidiary of Ma'aden Saudi Arabia, based at Beira, Mozambique.

 

'Despite having all the necessary export documents per law, our 200 containers are stuck. The customs office in Mozambique is not granting permission nor are they giving any reason.'

 

The delay has lifted wholesale prices in India by nearly 10% in two months as stocks diminish during the lean supply season, adding to food inflation ahead of state elections this month and national polls due early next year.

 

However, a few exporters have obtained export permits, allowing them to ship 50,000 tons of pigeon pea to India, traders said.

 

In response to a Reuters query, Mozambique's agriculture ministry shared a statement issued in October that said it had cancelled phytosanitary certificates for goods in the customs process from Sept. 22 after finding 400 of them to be false or dubious, but added it had resumed licensing since then.

 

India's pigeon peas production in the 2023/24 season is expected to fall after lower rainfall in key crop areas in August and October.

 

India will need to import 1.2 million tons of pigeon peas in the year ending March 31, 2024, up from last year's 894,420 tons, the government estimates.

 

Satish Upadhyay, a Mumbai-based pulses importer, said shipment delays had caused a $100 per ton price increase in recent weeks.

 

'Mozambique is aware that India is in dire need of pigeon peas this year due to a poor local crop, and they are taking advantage of the situation,' he said.

 

Last month, India expressed concerns over shipment delays during a meeting between its consumer affairs secretary, Rohit Kumar Singh, and Mozambique's high commissioner in New Delhi, Ermindo A. Pereira.

 

During the meeting, Pereira assured his counterpart that necessary steps would be initiated to ensure smooth flow of pigeon pea exports to India, according to an Oct. 27 Indian government statement.

 

However, the situation in Mozambique hasn't changed, Bimal Kothari, chairman of the India Pulses and Grains Association, said.

 

'Mozambique seems to be exploiting India's supply shortage by delaying shipments and holding India's food security hostage,' Kothari said.

The Maharashtra cabinet on Wednesday approved the state’s first export incentive policy which is aimed at generating investments worth Rs 25,000 crores. The state plans to have a 22 % share in the country’s target of $ 1 trillion exports by 2030.

 

The policy aims to double the value of the state’s export from the current $ 72 billion to $ 150 billion and to introduce 30 projects aimed at export infrastructure in the next five years. The policy will extend to 2027-28. The policy is expected to benefit 5,000 MSMEs, besides large projects and create 40,000 job opportunities, the government claimed. As part of the policy, the government will provide financial assistance upto Rs 50 crore for export oriented specific projects Rs 100 crore for export oriented industrial parks.

The policy will also encourage the development of districts as export hubs by improving the export contribution of each district in order to reduce regional disparity.

Global cereal production this year is forecast to reach a record 2.81 billion tonnes, according to the Food and Agriculture Organization of the United Nations’ latest Cereal Supply and Demand Brief released on Nov. 3.

 

Of note was higher projected coarse grain production in China and most of West Africa and lower forecasts for the United States and the European Union. Wheat output forecasts were raised for Iraq and the United States and revised downward for the European Union and Kazakhstan. World rice production in 2023-24 is forecast to increase marginally year-on-year. The new revisions include an upgrade to India’s production, more than offsetting various other revisions, particularly a further downgrade of Indonesian production prospects.

 

World cereal utilization in 2023-24 is forecast to reach 2.810 million tonnes, with the total utilization of both wheat and coarse grains set to surpass 2022-23 levels while rice utilization is expected to stagnate at the previous season’s level.

 

The world cereals stocks-to-use ratio for 2023-24 is forecast to stand at 30.7%, “a comfortable supply situation from a historical perspective” and marginally above the previous year’s level of 30.5%, according to the FAO.

 

Global trade in cereals in 2023-24 is forecast at 469 million tonnes, a 1.6% contraction from the preceding year.

 

The FAO also noted in a separate report that persisting and intensifying conflicts are aggravating food insecurity, and moderating international food commodity prices are being countered by weak currencies in many low-income countries. A total of 46 countries around the world, including 33 in Africa, are assessed to need external assistance for food, according to the latest Crop Prospects and Food Situation report, a triannual publication by FAO’s Global Information and Early Warning System (GIEWS).

 

More than half the residents of the Gaza Strip were estimated to be in acute food insecurity already in 2022, and escalation of the conflict there between Israel and the Hamas organization will increase humanitarian and emergency assistance needs even as access to the affected areas remains an alarming concern, the FAO said, adding that spillover effects from the conflict could worsen food insecurity in Lebanon.

 

While world cereal production is forecast to expand by 0.9% in 2023 from the year before, the pace of growth will be half of that rate for the group of 44 Low Income Food Deficit Countries (LIFDCs), the report noted.

The food authority has said that it will be mandatory for notified labs to upload the testing/analysis report of fortified rice kernel, and vitamin-mineral premix for fortified rice kernel on the Infolnet portal.  

 

The FSSAI has issued an order in this regard, issuing directions to laboratories and asking them to comply without fail.

 

Under the FSS (Recognition and Notification of Laboratories) Regulations, it is mandatory for all the FSSAI notified labs to share the record of observations and upload the test report on the online platform of the food authority.

 

FSSAI’s order says that labs which are notified for the testing of fortified rice kernel and vitamin-mineral premix for fortified rice kernel are required to upload the testing/analysis report to Infolnet on a real-time basis.

 

These labs were directed to submit monthly reports of testing carried out by them to FSSAI before 5th of every month.

 

FSSAI’s order also asked these labs to submit a report about the non-compliant samples and their manufacturers as well.

 

The labs were also directed to keep the remnant samples of the fortified rice kernel and premix for the fortified rice kernel for at least three months from the date of reporting in the refrigerated condition (5-10 degree C).

 

'All laboratories are directed to comply with the directions failing which strict penal action will be taken against the defaulting samples,' reads the order.

Finance minister Nirmala Sitharaman on Monday said world economic recovery remains 'slow and uneven' and medium-term growth prospects have weakened further, as she called for coordination at both global and domestic levels to ensure a swift rebound.

 

At a seminar on Strong, Sustainable, Balanced and Inclusive Growth in the Capital, Sitharaman said the New Delhi Declaration of G20 leaders in September underscored the urgency of adopting well-calibrated structural policies to bolster equitable growth and improve macroeconomic and financial stability.

 

She stressed that while India's G20 presidency-which has 'mainstreamed the concerns and aspirations of Global South'is coming to an end this month, momentum must be maintained on the policy guidance offered by the New Delhi declaration. 'Not only should we engage with G20 partners to take forward the outcomes, but we should also explore how best we can integrate these outcomes into India's domestic policy-making process so that we can lead by example,' Sitharaman said.

Notwithstanding the phone call between PM Narendra Modi and his British counterpart Rishi Sunak last Friday, the much talked about visit by the UK PM to India is not on the cards until the Free Trade Agreement is finalised and ready to be signed.

 

Sunak has also been kept busy by developments in West Asia and there are speculations that a trip in the middle of a conflict may not be feasible, ET has learnt.

 

There are reports that the deal could be sealed in December after the state assembly elections. The two sides have differences whether taxation will be included in a proposed investment protection pact, as well as the UK’s demand that tariffs be cut on electric vehicle exports to India.

 

Launched on January 13, 2022, the India-U.K. FTA began its latest 13th round of negotiations on September 18. The two sides were earlier looking to conclude FTA negotiations in October for a visit by Sunak in October last week ahead of Diwali. But final deal is yet to be

 

India-UK bilateral trade has increased from $17.5 billion in 2021-22 to $20.36 billion in 2022-23. With the talks reaching a critical juncture, both sides are now discussing contentious issues like tariffs on alcohol, Scotch whisky, rules of origin and visas for professionals.

 

Sunak spoke to Prime Minister Narendra Modi last Friday afternoon during which both leaders discussed the need to 'de-escalate' tensions and the importance of protecting innocent civilians in the Israel-Gaza conflict

 

The phone call centred around the situation in the Middle East but also covered bilateral ties and the progress being made towards an 'ambitious' deal in the ongoing India-UK free trade agreement FTA negotiations.

 

The leaders discussed recent progress on free trade agreement negotiations. They agreed on the importance of securing an ambitious deal that benefitted both sides, according to a UK government readout. Sunak would likely showcase the deal as a benefit of Brexit.

Indian Prime Minister Modi has inaugurated the second edition of the Mega food event ‘World Food India 2023’ at Bharat Mandapam, Pragati Maidan in New Delhi. The event aims to showcase India as the ‘food basket of the world’ and celebrate 2023 as the International Year of Millets.

 

Modi credited the consistent and dedicated efforts by the government behind the speedy and rapid growth in India’s food processing industry. He mentioned the creation of Agri-Export Policy for the first time in India, the development of nationwide logistics and infrastructure, the creation of more than 100 district-level hubs connecting the district to the global markets, increase in the number of Mega Food Parks from 2 to more than 20, and India’s food processing capacity increasing from 1.2 mln tons to more than 20 mln tons in the last 9 years.

 

The PM gave examples of agricultural produce that are being exported from India for the first time and mentioned black garlic from Himachal Pradesh, dragon fruit from Jammu & Kashmir, Karkitchoo apples from Ladakh, Cavendish banana from Punjab and Gucchi mushrooms from Jammu.

In a significant move to enhance agricultural exports to the Gulf Cooperation Countries (GCCs), the Agricultural and Processed Food Products Export Development Authority (APEDA), a body under the Ministry of Commerce, Government of India, has entered into a Memorandum of Understanding (MoU) with the global retail giant Lulu Hypermarket LLC.

 

This MoU, with the goal of promoting Brand India on a global scale, was officially signed during the World India Food (WIF) 2023 event on November 3, 2023, in New Delhi. The signing ceremony was graced by Abhishek Dev, Chairman of APEDA, and Mr. Yusuf Ali MA, Chairman-cum-Managing Director of LuLu Group. The collaboration with Lulu Hypermarket is expected to have a transformative impact on Indian agricultural exports to the GCC countries.

 

The LuLu Group International (LLC) is a major player in the retail industry with a presence not only in the GCC but also in Egypt, India, and the Far East, boasting 247 LuLu stores and 24 shopping malls in operation. It is recognized as the fastest-growing retail chain in the Middle East and Asia. Under this MoU, APEDA will take on the role of promoting various Indian agricultural products, including millet, throughout the GCC region. This strategic partnership capitalizes on Lulu Group's expansive reach and influence in the region.

 

The agreement outlines several key aspects, including the active promotion and showcasing of a wide range of products from APEDA's basket of agricultural and processed food products in Lulu Hypermarket's retail outlets. To further enhance visibility, dedicated shelf space within LuLu Group's stores will be allocated to display APEDA's products prominently.

 

In addition to these promotional activities, APEDA and LuLu Group will engage with consumers through interactive events, sampling and tasting campaigns, seasonal promotions for fruits and vegetables, new product launches, and the promotion of products originating from Himalayan and North Eastern States, as well as organic products. The MoU extends its support to boost exports from the Himalayan and North Eastern states by facilitating agreements with entities such as the Arunachal Pradesh Marketing Board, Sher-e-Kashmir University of Agricultural Sciences & Technology, Jammu, and Meghalaya Agricultural Marketing Board.

 

The collaboration's primary objective is to raise awareness about the benefits of unique, GI-tagged agri-products, and collect feedback from consumers to improve product offerings. The agreement also signifies a joint effort by APEDA and LuLu Group to explore opportunities for the export of agricultural products through LuLu Group's international network of stores, expanding the global reach of Indian agricultural products and improving accessibility for consumers.

 

Further, both parties will jointly facilitate export-oriented promotional programs, such as Buyer-Seller meets (BSMs), R-BSMs/B2B meetings, trade fairs, and road shows in collaboration with Indian Missions abroad and relevant stakeholders.

 

The MoU also includes a commitment from LuLu Group to assist in labeling products according to the specific requirements of different importing countries, with commercial matters and applicable terms to be decided mutually.

 

Thailand, Pakistan, Myanmar and Cambodia will likely compensate for reduced shipments of rice from India and Vietnam and exports from Asia are likely to be 55.4 million tonnes (mt), 6 per cent higher than the five-year average, the Food and Agriculture Organisation has said. 

 

The UN body, in its Global Information and Early Warning System on Food Agriculture’s 'Crop Prospects and Food Situation' report, said world rice reserves at the close of 2023-24 marketing season (September-August)  are forecast to recover by 1.5 per cent year-on-year to a peak of 198.9 mt.

 

'However, much of this increase is envisaged to take place in India, where another accumulation, coupled with carry-out recoveries in Pakistan and the US, could overshadow stock drawdowns in all other major rice exporters,' the report done thrice a year said. 

 

Food security concerns

Indian exports will be lower in view of various curbs imposed by India on rice shipments since September 2022.  The Government banned shipments of broken rice in September 2022, while banning white rice exports in July this year. It has imposed a 20 per cent duty on parboiled rice from August 26 and fixed $950 a tonne as the minimum export price for basmati shipments. 

 

The measures have been taken to ensure food security in the country in view of the paddy crop being affected by truant weather. The Agriculture Ministry has estimated rice production at 106.31 mt against a target of 112 mt. Last year, kharif production was 110 mt. 

 

Rice exports by countries such as Thailand have helped to bring down rice prices by 2 per cent in October from September. 'International rice prices dropped by 2.0 percent amid generally passive global import demand,' the FAO said in its price index. 

 

Up 24% y-o-y

In its Rice Price Update, the UN arm said the FAO All Rice Price Index averaged 138.9 points in October 2023, but it was 24 per cent above the year-ago value. 

 

'Export quotations declined in all the major market segments in October,' it said. The price weakness was 'most evident' in the Japonica and Glutinous markets, where generally quiet trading activities were compounded by harvest progress of Calrose rice in California and Glutinous rice in Thailand. 

 

This resulted in the Japonica Index shedding 8.9 per cent of its September value to arrive at its lowest level since December 2021, while the Glutinous Index retreated by 5.3 per cent to a three-month low. 

 

Buyers shy away

In Asian markets of Indica rice, which India produces, substantial deals were largely confined to continued purchases by Indonesia’s Bulog in October. India also approved shipments of one million tonnes to seven nations to meet food emergencies in African nations and fulfil its bilateral commitments with countries such as Singapore.

 

However, buyers continued to refrain from making substantial purchases, resulting in exports falling across much of Asia, the FAO update said. 

 

In Thailand, the sustained weakness of the baht against the US dollar added to the weak offshore demand. New crop arrivals in Pakistan helped defy the upward influence of a rebound in the value of the Pakistani rupee on prices. 

 

Vietnamese quotations proved somewhat more resilient, especially those of lower grade rice, as availability for export was tighter.

 

Thai rates down but Vietnam’s up

According to the Thai Rice Exporters Association, between August first week, when prices zoomed on Indian export curbs, and now, prices of Thailand’s 5 per cent broken white rice have dropped by 5 per cent to $584 a tonne from $612, while its 25 per cent broken white rice is quoted nearly eight per cent lower at $558 against $605. Bangkok’s parboiled rice prices have dropped to $584 from 615.

 

In India’s case, parboiled rice prices are currently ruling at $498-502 against $478-482 a tonne. Like India, Vietnam’s quotes for white rice have increased, while Pakistan is offering its cereal at substantial discount to Thailand’s prices ranging from $20 to $60 a tonne.

Indonesia's state food procurement company Bulog said on Monday the government is planning to set next year's rice import quota at 2 million metric tons, down from this year's quota of 3.8 million tons.

 

Those imports would depend on domestic supply and demand, however, Bulog's corporate secretary Awaludin Iqbal said.

 

The Southeast Asian country also announced it would extend until June 2024 its monthly rice handout scheme, a programme that provides rice to 22 million lower income households to protect the poor from rising prices.

 

The programme was due to expire next month.

 

'We decided to extend the programme considering the rice price has yet to drop,' Trade Minister Zulkifli Hasan told reporters on Monday.

 

The rising price was caused by drought linked to the El Nino weather pattern that has hit harvests.

 

President Joko Widodo previously said the price of rice has risen by 19.8% as of the end of October.

 

Indonesia's rice imports in the January to September period were 1.79 million metric tons, with Bulog rice stock at 1.4 million metric tons as of the start of this month.