Union Minister Piyush Goyal will co-chair the 11th Meeting of the India-UAE High-Level Joint Task Force to boost investments between the two countries.

The UAE delegation will be led by Sheikh Hamed bin Zayed Al Nahyan, a Member of the Executive Council of the Emirate of Abu Dhabi.

'A delegation led by Piyush Goyal, Union Minister of Commerce and Industry, Consumer Affairs, Food and Public Distribution and Textiles, Government of India, will be visiting the United Arab Emirates from October 5-6 to co-chair the 11th India-UAE High-Level Task Force on Investments (HLTFI), and to engage with industry representatives and interact with the UAE delegation led by Sheikh Hamed bin Zayed Al Nahyan, Member of the Executive Council of the Emirate of Abu Dhabi,' the Ministry of Commerce and Industry said in a statement.

The two delegations will discuss issues and challenges pertaining to existing investments, both, made by UAE companies in India, and investments made by Indian Companies in UAE.

The meeting will also review the outcomes achieved through the work of the Joint Task Force to date, and the two sides will continue exploring ways to facilitate investment in areas of mutual interest with the potential for economic growth.

Over the two-day visit, Minister Goyal will also hold bilateral meetings to enhance general trade, investment matters and areas of cooperation for strengthening India-UAE ties, the Ministry stated.

 

The Joint Task Force was established in 2013 as a key forum to promote trade, investment and economic ties between the UAE and India. Over the years HLTFI has emerged as an effective platform for addressing key constraints that companies from either side may face.

Notably, this will be the first meeting post the one-year celebration of the India-UAE Comprehensive Economic Partnership Agreement (CEPA) signing, the Ministry added.

Although onion imports from India remain suspended following the export price hike by New Delhi, state-run Trading Corporation of Bangladesh (TCB) has continued to import onion through the Benapole land port.

 

The TCB will sell the onion to the low income group of people in open market at fair prices in different parts of the country. The customs and port authorities have been extending cooperation to the TCB so that the onion is released from the port as soon as possible. Meanwhile, onion prices have gone skyrocketed in the market after import from India has declined due to various complications. However, retailers have expressed the hope that the onion prices may decline in the market as the government has started import of onion through the TCB.

The Nagaland Health and Family Welfare Department has mandated that all Food Business Operators (FBOs) operating within the state must acquire or renew their Food Safety and Standards Authority of India (FSSAI) licence and registration certificate for their food establishments by October 31, 2023.

 

This directive aligns with the Food Safety and Standards (Licencing and Registration of Food Businesses) Regulations, 2011, and emphasises the importance of adherence to food safety standards.

 

A spokesperson from FSSAI stated, 'All Food Business Operators in the country are registered or licensed in accordance with the procedures laid down under the Food Safety and Standards (Licencing and Registration of Food Businesses) Regulations, 2011.

 

'All FBOs are required to adhere to Sanitary and Hygienic Practices as laid down under Schedule 4 of the said regulations. FBOs may also refer to the inspection checklists applicable to their food business which are available at FoSCoS Homepage,' the spokesperson added.

 

Under Section 31 of the Food Safety and Standards Act 2006, no person shall commence or carry on any food business except having a valid FSSAI licence/registration. FSSAI Licence/Registration is premises-based and the procedure for applying is completely online through the Food Safety Compliance System - FoSCoS portal.

Kendrapara’s famous sweet Rasabali received the geographical indication (GI) tag on Tuesday, bringing cheer to the people of the coastal district. Kendrapara Rasabali Makers’ Association and the Rural Infrastructure Development and Employment applied for GI tag for the sweet in 2021. The mouth-watering delicacy originates from the 262-year-old Baladevjew temple at Ichhapur on the outskirts of Kendrapara town. It consists of deep-fried flattened reddish-brown patties of cheese that are soaked in thickened and sweetened milk.

 

President of the association Baishava Panda said many people in the district earn their livelihood by selling Rasabali. 'We are delighted with the recognition as the GI tag will lend a distinct identity to the product and nobody can misuse the name to market similar sweets.'

 

Rasabali is one of the most delicious sweets in the country. But due to poor promotion and export facilities, it is not being marketed properly. The GI registration will help boost export of Rasabali and also put Kendrapara on the global map. 'In 2021, a team had prepared a dossier in support of our claim for GI tag for the sweet. We submitted the dossier to the state government which in turn sent it to the office of Geographical Indications Registry in Chennai,' informed Panda.

 

Similarly, the executive officer of Baladevjew temple Balabhadra Patri said Rasabali is one of the main Bhogs in the shrine which was constructed during the Maratha rule in Odisha in 1761. The GI tag for the sweet would differentiate it from competing products in national and international markets.

 

Expressing happiness over the GI tag, Rasabali maker of Kendrapara Souri Sahoo said the unique sweet will now acquire more prominence in the market. Besides, the tag would help the makers get best remunerative price. 'The GI certification would also stop adulteration of Rasabali and thereby, the authenticated sweet will fetch better prices,' he added.

Cote dÍvoire (Ivory Coast) has firmed up plans to become a rice surplus country in the next few years to overcome a perennial shortfall in domestic supplies and production. It has reached out to India to help it in achieving the production and milling target.

 

The country has sought India’s participation and investments as part of its national rice strategy, which was launched recently.

 

'We are looking at investments from India to promote rice production and milling capacities. Indian investors can establish joint ventures for the purpose. India can use Côte dÍvoire as a base to cater to African countries instead of exporting rice from India,' a top official of the country’s rice regulator said.

 

Milling target

'We have set a target to mill 5 million tonnes of paddy and we are setting up 50 mills (with a capacity of 25,000 tonnes each) in different parts of the country. India’s Exim Bank is already helping us in expanding the milling capacities,' Aboubakary Traore, Director of Valorisation Support of ADERIZ (Rice Development Agency of Cote dI’voire, said.

 

Speaking to a team of Indian journalists on the sidelines of SARA (International Exhibition of Agriculture and Animal Resources), he said the country required 1.9 million tonnes of rice for a population of 29 million people, with a per capita consumption of about 84 kg. 

 

'We are producing 1.2 million tonnes, while meeting the remaining gap by importing from countries such as India, China, Thailand and Vietnam,' he said.

 

The bulk (about 50 per cent) of the imports come from India. Of a total of six lakh tonnes of rice imported in the first half of 2023, India’s imports contributed 3.75 lakh tonnes.

 

Now that India has curbed rice exports - the latter banned white rice and imposed 20 per cent duty on parboiled rice-, the country is looking at plugging the gap by tapping the other rice exporting countries.

 

Prices up post-Indian curbs

The Indian curbs have pushed up prices in the retail market. 'Prices went up to 800 francs (local currency), up by about 250 francs,' he said. Globally, rice prices increased by $100 a tonne after India’s curbs to meet its food security and cool rising foodgrain prices. 

 

With the country falling short of its rice requirements, the West African country created ADERIZ five years ago to promote cultivation and plan for all associated activities (seed development and post-harvest crop management etc).

 

Though a predominantly agro-economy with over two-thirds of people engaged in agricultural activities, the country’s focus is on cocoa and rubber. In order to become self-sufficient in rice and emerge as a net exporter of the commodity, the government introduced a National Strategy for the Development of the Rice Sector (SNDR) in 2012 and ADERIZ in 2018 to expand the rice production areas across the country.

If you chance upon a random person in a conference or in a hotel in Abidjan, the capital of Cote d’Ivoire (which is also known as Ivory Coast), and introduce yourself as someone visiting from India, the first question that confronts you will be – 'when is your country lifting the ban on rice exports?'

 

There is a reason for their anticipation. Prices of rice in the country with a population of 29 million have shot up by 25-30 per cent ever since India curbed rice exports a few months ago. Though it is predominantly an agricultural country, its focus is entirely on cocoa, rubber and coffee, with rice being grown only in 6 per cent of the country’s arable land.

 

While India banned exports of white rice on July 20, it imposed a 20 per cent export duty on parboiled rice from August 26.

 

4th largest importer

'It is not just about Cote d’Ivoire; it holds good for all of the West African bloc and some other African countries. We hope we get Indian rice sooner,' a person involved in agricultural trade said.

 

The rice-eating Cote d’Ivoire, like some of its African peers, depends on rice imports, mainly parboiled, to meet its domestic demand. That Cote d’Ivoire is the fourth largest importer of Indian rice shows how dependent it is on India. It contributed to 6.6 per cent of India’s total non-basmati rice export of 18 million tonnes in 2022-23. The aggregate value of its rice imports from India was $420 million.

 

'The increase in rice prices in the city is as high as 30 per cent after the ban (on white rice). A 25-kg bag is being sold at 19,000CFA francs (XOF in currency market) against 14,000 francs before theban on exports early this year,' Isabelle (name changed), a homemaker, said. (One Indian rupee fetches you around 7.5 local francs.)

 

Used to Indian rice

'We eat it three times a day and we don’t produce rice. It’s cheaper for us to import it rather than growing it here. Though there are other alternatives such as China, Thailand and Vietnam for importing rice and substitute the imports from India, we are hooked to the taste of Indian rice,' said.

 

The US Department of Agriculture in its mid-September 2023 said the sharp increase in rice prices (following India’s export ban) 'is expected to disproportionately impact countries in import-dependent Sub-Saharan Africa'.

 

Three of the top five India’s export markets are in Sub-Saharan Africa – Benin, Senegal, and Cote d’Ivoire – with each receiving more than one million tonnes of Indian rice in 2022. India is, by far, the largest supplier to these countries and many others in the region. Cote d’Ivoire imported 1.2 million tonnes from India in 2022-23.

 

According to an IFPRI (International Food Policy Research Institute) blog, India’s rice market share in 2022 exceeded 80 per cent for several African countries, reflecting the heavy dependence on Indian rice.

 

N’Khoh Abroise, a cocoa farmer from Abey Benigni village, which is a two-hour drive from the country’s capital, said Indian rice is popular in Cote d’Ivoire. 'It’s costlier growing rice here than getting it imported from outside. The northern and western parts of the country consume rice,' he said. 

Côte d'Ivoire, known as the world's largest cocoa producer, has reached out to India with a proposal to source cocoa directly from their country due to a significant rise in cocoa product consumption.

 

They plan to send a high-level delegation to India in the coming month for negotiations with the Indian government and potential partners and investors, particularly in the processing and value-added segments of the cocoa industry within their nation.

 

Despite producing a substantial 2-2.2 million tonnes of cocoa, which accounts for 45% of the global cocoa output totalling 5 million tonnes, Ivorian cocoa farmers have not been reaping the expected benefits.

 

In an effort to capitalize on their leading cocoa production status, Côte d'Ivoire has decided to explore direct marketing of cocoa.

 

However, their recently announced farmgate price of 1,000 francs, issued by the cocoa regulator on September 30, is still considered low, especially when compared to global cocoa prices.

 

The cocoa trade traditionally sees established players dominate, and these entities often enjoy the lion's share of the profits.

 

Therefore, Côte d'Ivoire is now focusing on promoting cocoa processing to increase the value of the commodity before selling it. They are actively seeking partnerships and the establishment of processing facilities to achieve this goal.

 

Yves Brahima Kone, the Managing Director of the regulator, stated during the International Exhibition of Agriculture and Animal Resources (SARA) that they plan to visit India in November to meet with potential partners and government officials to discuss the direct marketing of cocoa.

 

The objective is to market cocoa products or semi-finished goods, thus generating higher income for the country.

 

Regarding the high import duties on cocoa in India, it is expected to be a topic of discussion during their upcoming negotiations. The Ivorian regulator believes that these discussions will result in a mutually beneficial situation for both nations, enhancing cocoa trade and potentially leading to better returns for Ivorian cocoa farmers while meeting India's cocoa demands more efficiently.

India needs to grow at 8% to achieve its goal of becoming a developed economy by 2047, and private investment needs to pick up to support it, the World Bank's India country director, Auguste Tano Kouame, said on Tuesday.

 

The World Bank has, in its India Development Update released on Tuesday, kept India's growth forecast for FY24 unchanged at 6.3% despite moderating consumption and challenging global environment.

 

'The 6.3% growth forecast for India is still going to be one of the highest growth rates among major economies in the world,' Kouame told ET in an interview. 'So, India's growth rate is very respectable.'

 

Resilient economy

Although high inflation and high interest rate environment are a downside risk to the forecast, he underlined the resilience of the Indian economy to global headwinds.

 

'India has been very resilient, one of the most resilient economies to the headwinds, whether there are headwinds from geopolitics or inflation of exchange rates,' he said, highlighting that the country has a comfortable level of foreign reserves to manage currency volatility. The World Bank has priced in oil at $90 per barrel as a baseline for its inflation and growth forecast.

 

The multilateral lender sharply revised the inflation outlook for FY24 to 5.9%, moving closer to the Reserve Bank of India's upper band level.

 

Private investment focus

Kouame said conditions will remain conducive for private investment despite high inflation.

 

'Tapping public spending that crowds in more private investments will create more favourable conditions for India to seize global opportunities in the future, and thus achieve higher growth,' he said. Kouame pointed out that while public investment is necessary, it is not a sufficient condition to lure the private sector.

'In addition to public investment, you also need policies and reforms and regulations that make it easier and more attractive for the private sector,' he said.

 

Kouame said that India needs reforms to make it easier for the private sector to access land, skilled workers and easier for the micro, small and medium enterprises (MSMEs) to access credit.

 

Kouame observed that the economy would overcome the savings challenge as well, and noted that India should reach the investment-to-GDP ratio of 35%, for which savings in the country need to grow to 32% of the GDP. 'I think savings are going to be higher, going forward, because people save when they can trust the banking system, and, in India, the financial sector is very strong,' Kouame said, highlighting that savings will pick up again.

India has urged WTO members to start text-based negotiations from this month on finding a permanent solution to the issue of public stockholding for food security purposes, an official has said. The official added that the European Union (EU) is ready for talks with India on the stockholding issue.

 

The issue came up for discussion at an agriculture negotiations meeting on October 2 in Geneva. It was chaired by Ambassador Alparslan Acarsoy of Turkiye.

 

At that meeting, the EU offered a positive response to the chair's textual suggestions related to the safeguards mechanism aimed at preventing illegitimate exports stemming from excessive food stocks, the official said.

 

The Geneva-based trade official also said that the EU explicitly recognized that the safeguards and anti-circumvention are indeed the key provisions which deal with the possible impact of public stockholding policies.

 

'India urged members to commence text-based negotiations as soon as possible, preferably at the senior official level meeting scheduled for late October,' the official said.

 

Under text-based negotiations in WTO, an agreement is finalised around draft texts floated by the chair of a particular committee dealing with the subject. The draft is based on discussions amongst the member countries and is fine-tuned till all the nations are in agreement with it.

 

India reiterated the importance of discussing external reference prices to accurately assess farm support in relation to public stockholding.

 

The issue of finding a permanent solution to the public stockholding programmes for food security purposes is important for developing countries like India as it provides support measures and procures rice from farmers at MSP (minimum support price) and sells at cheaper rates to poor populations for food security.

 

Developed countries term these support measures as trade distorting subsidies and they are against these programmes of public stockholding of food.

 

According to them, this procurement violates the prescribed limit of providing subsidies and WTO's agreement on agriculture. They also demand notification to WTO (World Trade Organization) by emerging economies about their programmes.

 

Developing economies like India are of the view that there is a need to change the way this subsidy limit is calculated.

 

They also demand a significant cut of subsidies being given to farmers of developed countries.

 

India has pitched for the need to recalculate the external reference prices to reflect the impact of inflation and other economic factors on food stock prices.

 

In 2013, it was agreed by the WTO members to find a permanent solution to these issues and till then there is a 'peace clause' under which no country would file any legal complaint against another member even if the 10 per cent level is breached.

 

As part of a permanent solution, India has asked for things like amendments in the formula to calculate the food subsidy cap and inclusion of programmes implemented after 2013 under the ambit of 'Peace Clause'.

 

At the agriculture negotiations meeting on October 2, the chair asked members to consider several proposed safeguards and anti-circumvention provisions as potential breakthroughs for the highly debated permanent solution for public stockholding.

 

'This topic of public stockholding is crucial for achieving an outcome on agriculture at the next ministerial conference in February 2024. India has been a leading advocate for this initiative and has been, arguably, the largest beneficiary of the Bali interim solution, with the US disputing that the interim arrangement has contributed to India becoming the top exporter of rice,' the official said.

 

In previous meetings, the US has specifically called out India for exceeding limits on rice stocks under the Bali interim decision.

 

Under global trade norms, a WTO member country's food subsidy bill should not breach the limit of 10 per cent of the value of production based on the reference price of 1986-88.

 

Subsidies over and above the prescribed ceiling are seen as trade distorting. The limit is fixed at 10 per cent of the value of food production for developing countries like India.

 

India has earlier informed WTO that it has used the peace clause to provide excess support measures to rice farmers for marketing year 2020-21, in order to meet the domestic food security needs of its poor population.

 

In the meeting, India expressed gratitude to the EU for changing its stance and showing a willingness to negotiate on the public stockholding issue.

 

Several African and Asian countries have echoed India's view, emphasizing the urgency of negotiating a permanent solution on public stockholding in times of crisis.

 

The issue is expected to figure prominently in the 13th WTO Ministerial Conference (MC13) that will take place in February 2024 in Abu Dhabi, United Arab Emirates. MC is the highest decision making body of the 164-member multi-lateral body.

 

The European Union has said it is willing to negotiate on global trade norms on the way governments purchase, stockpile and distribute food to ensure food security, issues pushed by India at the World Trade Organisation and deadlocked for the past 10 years.

 

The move is seen as a significant breakthrough ahead of a key ministerial conference of the WTO next year where India, among 80 others is keen on a deal on food security, insisting that the extant rules don't adequately address market failures such as food hoarding and market speculation that drive up food prices and inflation during crises.

 

'The EU has shown willingness to negotiate the public stockholding issue with India,' said a Geneva-based official.

 

The grouping of 80 countries has said that a permanent solution for public stockholding should account for inflation and also be based on a recent reference price instead of an old one, which is based on 1986-88 prices. They have also proposed to amend the anti-circumvention clause in the Bali Ministerial Declaration of 2013, as per which developing countries who procure food stocks for security 'do not distort trade or adversely affect the food security of other members'.

 

The US and the EU have so far opposed this approach. At an agriculture negotiations meeting of the WTO on Monday, the EU in a significant change in stance said a safeguards mechanism to prevent illegitimate exports stemming from excessive food stocks were key to deal with the possible impact of public stockholding policies. Public stockholding is a policy tool used by governments to purchase, stockpile and distribute food when needed.