India and the United Kingdom are trying to find a middle ground to conclude a bilateral investment treaty along with a free trade agreement (FTA) by the end of this month, said people with knowledge of the matter.

 

The prospects of a deal have brightened with the UK softening its stance on India's proposal that investors exhaust all local remedies before opting for international arbitration, they said, even as UK Prime Minister Rishi Sunak's visit to India to ink the pact remains uncertain.

 

The UK had been insisting on 'pre-establishment national treatment' while raising concerns about the time-consuming legal processes to resolve disputes related to investments in India.

 

The UK wanted to keep the investment pact out of the trade deal.

 

'The UK has had issues with the long time it takes to exhaust local remedies for dispute resolution but is now showing flexibility,' said a government official, who did not wish to be identified.

 

The bilateral investment treaty (BIT) has been seen as one of the sticky points in the ongoing FTA negotiations between the two sides.

 

A separately revised investment treaty for the UK could set the stage for revision of similar pacts with other countries in future, according to people in the know.

 

India considers an investment treaty with the UK crucial as the latter is among the top investors in the country. In 2022-23, India received $1.74 billion in foreign direct investment (FDI) from the UK, up from $1.65 billion in the previous financial year. Between April 2000 and March 2023, FDI inflows from the UK amounted to $34.3 billion.

 

Under the rule of exhaustion of local remedies in India's model BIT, a claim must first be submitted before a relevant domestic court or administrative body. The idea is to prevent arbitrators from having expanded jurisdiction.

 

Pre-establishment national treatment allows foreign investors to drag the government to arbitration overseas even before an investment is made.

 

Arbitration cases

After witnessing an increase in arbitration cases, India had amended the model BIT in December 2015, making it mandatory for foreign investors to exhaust local judicial remedies before seeking arbitration.

 

India has lost multiple arbitration disputes, such as those with Cairn Energy PLC, Vodafone Group BV and Devas Mauritius Ltd, which were initiated invoking the pre-2015 BIT provisions. It is, therefore, now cautious in its approach to BIT, said experts.

 

According to the United Nations Conference on Trade and Development, 11 investor-state dispute settlement cases were filed against India between 2000 and 2020.

Increased agri exports, farmers’ enrichment, demand-based crop cultivation, organic products export, bio-fuel exports and overall cooperative sector development are the objectives of National Cooperative Exports Ltd (NCEL), which was formally launched on Monday by Cooperation Minister Amit Shah.

 

Agriculture contributes about 15 per cent of GDP, whereas nearly 60 per cent of the total population is engaged in it. 'No country can strengthen its economy by ignoring this 60 per cent of the population,' he said.

 

'We have to grow, increase our GDP and the income of this 60 per cent has to be increased by providing them employment opportunities. The only solution is to strengthen the cooperatives,' Shah said. He was optimistic that NCEL would work towards fulfilling the six objectives.

 

NCEL would serve as a link between farmers (through cooperatives), and overseas markets with good demand for milk products, jeera, isabgol, spices and ethanol. Shah said NCEL has received orders worth Rs 7,000 crore and negotiations are currently on for a further Rs 15,000 crore.

 

NCEL was recently declared the canalising agency for government-to-government non-Basmati rice exports. Orders received from different countries through diplomatic channels would be routed through it.

 

Pointing out that farmers were not getting the benefit of exports, the minister said NCEL would pass on minimum 50 per cent profit directly to farmers’ bank accounts after purchasing products from them at minimum support prices (MSPs). This would encourage farmers to grow demand-driven crops.

 

'Currently, farmers grow whatever they want to. NCEL will try to ensure that crop patterns are changed in line with export demand,' Shah said, adding the agency would have to fulfil all the brand-building, packaging and marketing requirements.

 

The minister also said the government would run pilot projects through Nafed and NCCF to increase pulses production, and the agencies would start registering farmers growing pulses.

IN ITS INTERNATIONAL Agricultural Trade Report released this week, USDA has confirmed that Australia, India, and Canada are the world’s three largest chickpea exporters, and accounted for more than 40 percent of the world’s shipments in 2022.

 

The agency has highlighted the impact of Indian policy and tariffs on global chickpea trade, with India’s domestic production being the world’s largest at 11.9 million tonnes (Mt) in 2021, more than double the figure produced in 2012.

 

The report values India’s 2022 imports at US $50M, down from the record $1.3 billion in 2017, with Tanzania providing 90pc of India’s 2022 chickpea import requirements.

 

The Foreign Agriculture Service report acknowledges Australia’s record chickpea production of more than 2Mt in 2016-17, when 62 percent of its chickpea exports went to India.

 

'Exports fell drastically to less than 1pc after India applied tariffs to limit imports,' the report said.

 

'This blow to the Australian chickpea sector emphasised the importance of diversifying export markets.

 

'Australia continues to be the largest exporter with approximately one-third of the global exports spanning the past 10 years.

 

In 2022, Bangladesh and Pakistan accounted for nearly 80pc of Australia’s chickpeas exports.

 

Changes in North America

Indian Government policy has also had an impact on US chickpea exports.

 

'In 2019, India imposed retaliatory tariffs on 28 US products including chickpeas, levying additional duties on chickpeas in response to Section 232 National Security Measures on Steel and Aluminum and the termination of India’s Generalized System of Preferences status.

 

'The 10pc retaliatory tariff resulted in US chickpea exports, valued at $6.4M, coming to a halt by 2022.

 

'Fortunately, India’s retaliatory tariffs were repealed for chickpeas in late September 2023.

 

'The US market share was 4pc before 2019.'

 

'India exports have been trending up and doubled last year to total $226M in 2022, with increased exports to the United Arab Emirates and Iran.'

 

Canadian production hit 214,000t in 2020 before falling to 76,000t in 2021 due to lower area and yields.

 

Canada’s top three chickpea markets are Pakistan, the US, and the European Union, which account for more than half its exports.

 

Canada also imports chickpeas, with the US and Australia its primary suppliers.

 

US chickpea imports have more than doubled during the past 10 years to a record $69M in 2022, with more than half the total coming from Canada.

 

Chickpea production in the US increased from 161,000t in 2012 to a peak of 580,000t in 2018, following record high exports to the EU and India in 2017, but in 2022 dropped back down to 166,000t with the subsequent decline in exports.

 

'US chickpea exports grew from $52M in 2013 to total $169M in 2017 but declined to $67M by 2022 in part due to drastically reduced shipments to India.'

 

Canada on $20M, the EU on $15M, and Pakistan on $8M were the three major markets for US chickpea exports in 2022, accounting for two-thirds of shipments.

 

'Exports in 2022 were down more than 20pc from the year before due to lower exports to Pakistan as Pakistan imported more from Australia.'

 

Solid demand from Turkey, Pakistan, Bangladesh

Turkey’s chickpea production has averaged more than 520,000t in the past decade, during which time its exports have more than doubled.

 

Turkey accounted for 9pc of global imports in 2022, when Mexico and Russia accounted for nearly two-thirds of the total, down 7pc from the year before on lower shipments from both suppliers.

 

Pakistan’s production has plunged from 751,000t in 2013 to 234,000t in 2021.

 

'During the same period, imports surged from $40M in 2013 to $262M in 2022 due to strong domestic demand and lower production.

 

'Australia is the largest supplier with nearly half of the trade followed by Canada and Russia, accounting for an additional 30pc.'

 

Bangladesh’s production dropped from 7000t in 2012 to 5000t in 2021, and its imports have averaged roughly 225,000t per annum during the past 10 years.

 

Bangladeshi imports dropped by one-third in 2022 because of lower sales from Australia as a supplier of more than 90pc of its demand.

 

Production of chickpeas in the EU dropped from 38,000t in 2012 to 3200 tons in 2022 due to a drop in area harvested since 2018.

 

The EU was the world’s third-largest importer in 2022, with Mexico and Turkey accounting for more than 45pc of the trade.

 

EU imports in 2022 were up by nearly a third from 2021 because of increased volume from Argentina, Canada, and Russia.

India's first multi-state cooperative society for exports, the National Cooperative Export Limited (NCEL), will promote the country's organic products and share half its returns with farmers. The NCEL will provide services to boost overseas shipments of organic produce and will be part of the Modi government's plan to establish three national cooperatives. The NCEL will connect relevant ministries and Indian embassies to enhance market linkages and supply chains for exports. At least 50% of the profits generated by the NCEL will be given to farmers.

 

India’s first multi-state cooperative society for exports will provide a global platform for the country’s organic products and share half its returns with farmers, Union home minister Amit Shah said on Monday, launching the enterprise, one among three national cooperatives being planned by the Modi government.

 

The National Cooperative Export Limited (NCEL), being positioned as a premier enterprise, will extend a range of services to ramp up overseas shipments of organic produce. In January, the Union Cabinet approved the launch of NCEL. The government is also in the process of setting up two more multi-state cooperatives for promoting seed businesses and organic farming.

 

Under the Constitution’s Seventh Schedule, which divides responsibilities between the Centre and states, state governments have jurisdiction over cooperatives. However, the Centre has control over policy-making for cooperatives that operate in more than one state, known as multi-state cooperatives, such as the NCEL.

 

' NCEL is being formally launched on the auspicious day of Mahanavami. Today we are crossing a very important milestone on the way to realize the vision of Sahkarita Se Samriddhi (progress through cooperation), for which the ministry of cooperation was established for the first time since independence by Prime Minister Narendra Modi,' Shah said.

 

In the monsoon session in July, Parliament passed The Multi-States Cooperative Societies (Amendment) Bill, 2022, which will govern NCEL. The law was brought in as part of a broader push by the Modi government to modernize the country’s 115-year-old cooperative sector.

 

A cooperative society is a business jointly owned by members who share both profits and losses. Cooperatives are collective enterprises jointly owned by participating members who share profits and losses. The popular milk brand Amul, for instance, is a cooperative. So is India’s largest fertilizer maker, IFFCO.

 

NCEL will connect the ministries of commerce and industry, external affairs and Indian embassies to boost market linkages and supply chains for export of farm produce, Shah said. NECL will develop into a 'complete export ecosystem', covering procurement, storage, processing, marketing, branding, labeling, packaging and certification, a statement said. According to its proposed business model, at least 50% of profits will go to farmers.

 

' NCEL is launched in the cooperative sector with six objectives of increasing exports, enriching farmers, changing the crop pattern, providing global market for organic products, gaining a place for India in the global market for biofuels, and strengthening the cooperative sector,' Shah said.

The Food Safety and Standards Authority of India (FSSAI) has recommended the inclusion of QR code on food products for accessibility by visually impaired individuals stating that this will ensure access to safe food for all including individuals with special needs such as visually impaired individuals.

 

In its recent advisory signed by Director, Science and Standards Division, Amit Sharma, the authority notes that ensuring inclusive access to information is a fundamental right of citizens.

 

'It’s imperative that food products are labelled in a manner that ensures accessibility to all consumers, including those with visual impairments,’’ said the communication. 

 

The FSSAI under its Food Safety and Standards (Labeling and Display) Regulations, 2020 has comprehensively outlined the information to be included on the labels of food products. 

 

This information includes product name, shelf life, nutrition facts, vegetarian/non-vegetarian logos, ingredient lists, allergen warnings, and other product specific labelling requirements. This information is aimed at empowering consumers to make informed choices when selecting food products. The Rights of Persons with Disabilities Act, 2016 recognises the rights and needs of individuals with disabilities, which emphasises accessibility and the promotion of health for persons with disabilities. 

 

The authority notes that to enhance accessibility, Food Business Operators are encouraged to incorporate provisions that facilitate easy access to nutritional information for visually impaired individuals. 

 

'One effective means to achieve this is by incorporating Quick Response [QR] codes on product labels. These QR codes should encompass comprehensive details about the product, including, but not limited to, ingredients, nutritional information, allergens, manufacturing date, best before/expiry/use by date, allergen warning, and contact information for customer inquiries, ‘’ the FSSAI says.

 

It adds that it is pertinent to note that the inclusion of a QR code for the accessibility of information does not replace or negate the requirement to provide mandatory information on the product label, as prescribed by relevant regulations.

The Haryana government is giving special incentives to farmers for adopting crop diversification, said an official statement here on Sunday. This will not only enhance their income but will also ensure the protection of the environment. The farmers' future centres around crop diversity, it said.

 

In this direction, the state government took the initiative and started its ambitious Mera Pani-Meri Virasat Scheme, under which the key objective is to ensure water conservation while crop diversification. 'This scheme is proving to be very effective, and considering its success, a target of saving 42,480 crore litres of water has been set for the year 2023-24,' it said.

 

Increased agri exports, farmers’ enrichment, demand-based crop cultivation, organic products export, bio-fuel exports and overall cooperative sector development are the objectives of National Cooperative Exports Ltd (NCEL), which was formally launched on Monday by Cooperation Minister Amit Shah.

 

Agriculture contributes about 15 per cent of GDP, whereas nearly 60 per cent of the total population is engaged in it. 'No country can strengthen its economy by ignoring this 60 per cent of the population,' he said.

 

'We have to grow, increase our GDP and the income of this 60 per cent has to be increased by providing them employment opportunities. The only solution is to strengthen the cooperatives,' Shah said. He was optimistic that NCEL would work towards fulfilling the six objectives.

 

NCEL would serve as a link between farmers (through cooperatives), and overseas markets with good demand for milk products, jeera, isabgol, spices and ethanol. Shah said NCEL has received orders worth Rs 7,000 crore and negotiations are currently on for a further Rs 15,000 crore.

 

NCEL was recently declared the canalising agency for government-to-government non-Basmati rice exports. Orders received from different countries through diplomatic channels would be routed through it.

 

Pointing out that farmers were not getting the benefit of exports, the minister said NCEL would pass on minimum 50 per cent profit directly to farmers’ bank accounts after purchasing products from them at minimum support prices (MSPs). This would encourage farmers to grow demand-driven crops.

 

'Currently, farmers grow whatever they want to. NCEL will try to ensure that crop patterns are changed in line with export demand,' Shah said, adding the agency would have to fulfil all the brand-building, packaging and marketing requirements.

 

The minister also said the government would run pilot projects through Nafed and NCCF to increase pulses production, and the agencies would start registering farmers growing pulses.

Newly-appointed envoy of European Union Herve Delphin on Monday said making the EU-India strategic partnership a defining force for the world of today and tomorrow will be his key focus. Delphin said the EU's partnership with India is one of the most significant relationships developed by the grouping on the global stage.

 

The EU ambassador to India made the remarks after presenting his credentials to President Droupadi Murmu at an official ceremony at the Rashtrapati Bhavan.

 

The envoy said boosting economic opportunities, ensuring resilient supply chains and promoting faster green and digital transition will be the focus of his efforts in India.

 

'The strategic partnership with India is one of the most significant relationships developed by the European Union on the global stage,' he said.

 

'It is an honour for me to represent the EU in India and contribute to make EU-India a defining force for the world of today and tomorrow,' Delphin added.

 

The ambassador said the EU and India are trusted partners and friends, with strong bilateral cooperation.

 

'Over the years, our strategic ties have both broadened and deepened based on shared goals and interests -- on trade, trusted technology, security, green and clean energy technologies, sustainability, security and defence and more,' he said.

 

'We have an ambitious agenda to bring this partnership to a new level. My mission is to contribute to turn this into a reality for the mutual benefit of Europe, India, our companies and our people,' Delphin said.

 

The EU is India's second-largest trading partner, accounting for Euro 120 billion worth of trade in goods in 2022 or 10.8 per cent of the total Indian trade.

 

India is the EU's 10th-largest trading partner, accounting for 2 per cent of the grouping's total trade in goods. Trade in services between the EU and India reached more than Euro 45 billion in 2022. The EU as a whole is also one of the largest investors in India.

 

Emphasising the strong mandate he has received from Brussels to unlock the full potential of the EU-India partnership, Delphin said: 'The EU and India have much to gain from each other.'

 

'Together, we also have much to offer to the world in order to address the global challenges of our times, be it geopolitical, climate change, environment, sustainable development,' he added.

 

'Our common democratic values and principles are the fertile ground on which this relationship flourishes and we must continue to tend it,' the ambassador said.

 

Currently, India and the EU are negotiating a bilateral free-trade agreement (FTA) and an investment protection pact, besides another one on geographical indications.

 

These pacts are being considered crucial to unlock the full economic potential of the EU-India relationship.

 

The India-Middle East-Europe Economic Corridor (IMEC) initiative recently signed by the EU, France, Germany, Italy, India, the United States, Saudi Arabia and the United Arab Emirates (UAE) is another major step to expand economic opportunities.

 

The EU and India have also made significant forward movement in the last few years to deepen their security and defence cooperation, including on counter-terrorism, cyber and maritime security.

 

The Indo-Pacific region at large and the Indian Ocean in particular are key areas where this cooperation can be brought to bear, according to the EU.

 

With a career spanning 30 years with the EU, Delphin is a specialist in foreign policy and international relations.

 

Prior to his posting in India, he was heading policy planning at the European Diplomatic Service, EEAS, where he also served as the acting director of strategic communications and foresight.

 

A French national, he was awarded the title of 'Knight of the Legion of Honour' (Legion d'Honneur), the highest French National Order, in 2014.

The Department of Agriculture, Land Reform and Rural Development has opted to import eggs from abroad in order to deal with the high shortage of eggs in the country.

 

There has recently been a 30% shortage of eggs on the shelves in various retailers as the industry struggles to contain the outbreak of avian influenza.

 

The Department says it plans to provide importers with rebates to ensure that they do not pass on price increases to consumers. The outbreak of avian influenza has contributed to empty shelves at retail stores as infected chickens had to be culled and infected eggs destroyed.

 

This has led to the shortage of eggs and the prices increasing at an alarming rate as demand outstrips supply.

 

The Department of Agriculture is also considering waiving anti-dumping tariffs to allow more chicken and egg imports into the country.

 

It says that close to 2 million fertilised eggs have now been imported since September and that plans are in the pipeline to mitigate the impact of increases in the prices of eggs.

 

'From now we are going to encourage importation and we are talking with our sister department to help to rebate importers so that they do not pass on the prices to consumers,' says Deputy Director General at the Department of Agriculture and Forestry, Dipepeneneng Serage.

 

The department has issued permits to poultry meat and eggs to allow more imports in the country but has warned that it might take some time before this translates into more eggs being available on shelves.

 

'To date, we have issued lots of permits, but this does not translate into a number of chickens because permits mean that you are allowed to order eggs from a country now that takes some time the meat that comes through the harbour tasks about three weeks from the date they are shipped,' Serage explains.

 

The Department is optimistic that there will be enough stock for eggs ahead of the festive season as most of the imports are expected to reach our shores by the end of November. And it has reiterated that stringent measures are going to be put in place to ensure that importers comply with the laws and hygiene requirements of the country.

In the lush valleys of Kashmir, the past few weeks have brought a silver lining to the region's saffron growers.

 

As the skies opened up with abundant rainfall, there is newfound optimism that this year's saffron production would thrive.

 

Growers are pinning their hopes on the well-timed rains to substantially increase saffron yields.

 

Chairman of Saffron Growers Association, Abdul Majeed Wani voiced his optimism, saying, 'This year, the Valley endured an extended dry season. Fortunately, abundant rains arrived this week, much needed for the saffron crop. We are hopeful for a good yield this year.'

 

Wani underlined that growers were anticipating a bumper crop this season.

 

He also acknowledged the significant impact of the Geographical Indication (GI) tag on Kashmiri saffron. 'The GI tag has not only granted recognition but has also triggered a notable upswing in the price of saffron, both in the international and domestic markets. This recognition has transformed Kashmiri saffron into a highly coveted and valued commodity among consumers, contributing to the economic prosperity of the region's saffron industry,' Wani said.

 

As saffron growers gear up for the imminent harvest, the combination of well-timed rains and the GI tag's recognition augurs well for the saffron industry.

 

It promises another favourable year for Kashmiri saffron, further solidifying its reputation on the global stage.

 

The Agriculture Department officials shared optimism about the recent rainfall's impact on saffron crops.

 

'The last few seasons have been good, and we are expecting a bumper crop this year as well. The farmers are also excited this year, based on the feedback I heard during my field tour,' they said.

 

In addition to the timely rains, the price of Kashmiri saffron has surged significantly, with consumers in international markets now paying Rs 3250 per 10 gm of this coveted spice.

 

One of the primary reasons behind this sharp rise in Kashmiri saffron's price is its recognition by the government.

 

In 2020, saffron received a GI tag, making it the only GI-tagged saffron in the world.

 

This distinction has attracted attention from many European countries, the United States, and Canada.

 

GI labeling helps identify products with specific geographical origins, signifying their superior qualities compared to similar products from other regions.

 

This recognition allows producers to access both national and international markets, provided the product's qualities, characteristics, or reputation are essentially due to its place of origin.

 

In the previous year, saffron production reached 16.34 metric tonnes, marking the highest output of this crop in the last 27 years.

 

In 2021, saffron production stood at 15.04 metric tonnes, with an average yield of 4.4 kg per hectare recorded in 2022.

 

Farmers have reported significant improvements in their farming practices following the GI tag recognition.

 

Additionally, more farmers have been experimenting with indoor saffron cultivation, a technique introduced by SKUAST in 2021.