In recent years, India has seen significant growth in its plant-based food industry, aligning with its historical embrace of principles like non-violence, vegetarianism, and vegan cuisine. The concept of plant-centric eating has deep roots in Indian culture, and this sector is now poised for substantial expansion, with projections indicating robust growth by 2030. Globally, there is a notable shift towards plant-based foods, driven by consumer awareness of environmental and health impacts.

 

The global vegan food industry is expected to grow steadily between 2022 and 2027, with a compound annual growth rate of 11.32%. In particular, the plant-based dairy sector is set to expand significantly, from US$ 21 million to US$ 63.9 million by 2024, with an impressive compound annual growth rate of 20.7%. India's substantial vegetarian population, making up about 30% of its people, and growing recognition of the health and environmental benefits of plant-based diets, are contributing to the country's plant-based food market's projected 11.8% compound annual growth rate between 2021 and 2028.

 

Rising Demand For Vegan Food In India

Plant-based foods are products made entirely from plant-derived ingredients, free from any animal components, and serve as substitutes for traditional animal-based items. The production of animal-based products has substantial negative environmental impacts, including land conversion, resource consumption, and adverse effects on communities and ecosystems. Plant-based diets offer a sustainable solution, addressing ethical concerns, animal welfare, and unsustainable agricultural practices.

 

The demand for vegan snacks and sweets is propelling India's vegan industry, with the sector potentially constituting 7.7% of the global protein market by 2030, valued at US$ 162 billion. In contrast, global animal and dairy protein demand is forecasted to reach US$ 1.2 trillion by 2030. The plant-based dairy market is expected to grow rapidly, from US$ 21 million to US$ 63.9 million, with an impressive compound annual growth rate of 20.7%.

 

India's plant-based food sector is witnessing substantial growth, with numerous startups and FMCG companies entering the market, offering alternatives to traditional animal-based products. This expansion not only presents business opportunities but also has the potential to improve farmers' incomes and address food scarcity, climate change, and public health issues. India's diverse crop production, advanced food industry, research institutions, R&D achievements, and growing private equity sector make it a promising hub for further expansion in the plant-based food industry.

 

India's vegetable oil imports rose 33 per cent year-on- year to 18.66 lakh tonne in August due to lower duties and a revival of demand after a fall in domestic rates, according to industry body SEA. India, the world's leading vegetable oil buyer, imported 14.01 lakh tonne of vegetable oil in August 2022.

 

The country's total vegetable oil imports during the first ten months of the 2022-23 oil year (November-October) increased by 24 per cent to 141.21 lakh tonne, when compared to 113.76 lakh tonne in the year-ago period.

 

According to the Solvent Extractors' Association (SEA), edible oils comprised 18.52 lakh tonne, while non-edible oils at 14,008, out of total vegetable oil shipments undertaken in August.

 

In total, palm oil imports reached 11.28 lakh tonne in August.

 

'Looking to import of edible oils in first ten months at 141.21 lakh tons, it will not be surprised to see a record import of over 160 to 165 lakh tons during current oil year ending October 2023,' it said in a statement.

 

India's highest import was 151 lakh tonne in 2016-17, it added.

 

Citing reasons for the rise in imports, the industry body said despite ample domestic availability, a sharp drop in domestic edible oil prices has reignited demand, as reflected in the August data.

 

Crude palm oil imports rebounded, regaining competitiveness against soybean and other oils, totalling 8.24 lakh tonne in August, slightly down from 8.41 lakh tonne in the previous month, it said.

 

'This influx of imports is driven by the current low 5.5 per cent duty on crude palm oil, soybean oil, and sunflower oil, transforming India into a prime destination for excess oil supplies,' it added.

 

India imports palm oil mainly from Indonesia and Malaysia, and a small quantity of crude soft oil, including soyabean from Argentina. Sunflower oil is imported from Ukraine and Russia.

The US embraced India’s decision to reduce tariffs on various American agricultural products. Last week itself, India announced that it will reduce tariffs on certain agricultural products from the US such as frozen turkey, frozen duck, fresh and frozen blueberries, and cranberries, among others. 

 

The decision was appreciated by the US government and officials who stated that this move would help boost economic opportunities for US agricultural producers and expose Indian customers to more products from the United States. 

 

Appreciating the move, US Agriculture Secretary Tom Vilsack noted that the decision would generate new market opportunities for US producers and exporters. He added, 'Under the Biden-Harris Administration, USDA (US Department of Agriculture) and USTR (United States Trade Representative) have focused on rebuilding trust and strengthening relationships with our global trading partners, including India, and working through the World Trade Organization and other venues to ensure that those partners live up to their obligations so that US agriculture has full and fair access to key export markets,' as reported by PTI. 

 

The development comes after India lifted retaliatory tariffs on US products, namely apples, chickpeas, lentils, almonds, and walnuts. These restrictions were lifted this week and announced earlier in the summer. Commenting on the tariff barriers, Vilsack said, 'While important progress has been made, significant tariff and non-tariff barriers to American agricultural products accessing the Indian market remain.'

 

Senator Amy Klobuchar also issued a statement welcoming India’s decision to reduce tariffs on US turkey exports to India. The move would lower tariffs on frozen turkey products exports to India from 30 per cent to 5 per cent.

 

'For too long, high tariffs have prevented American turkey farmers from exporting their products to India. That’s why I pushed for a resolution to create an even playing field and reduce trade barriers for American turkey farmers and producers, and I’m glad to see this agreement has been reached,' Klobuchar added.

 

Senators Mark Warner and Tim Kaine issued a separate statement stating that this decision will enhance India-US relations and help generate more demand for Virginia poultry, in turn supporting the economic activity. 

 

Notably, Virginia stood as the sixth-largest turkey source in the US in 2021, with a production of 14.5 million birds. Joel Brandenberger, the president and CEO of the National Turkey Federation added, 'The National Turkey Federation applauds the efforts by the US and Indian governments to significantly reduce the tariffs. This move creates an important new market for US turkey producers and will give Indians more affordable access to a nutritious, delicious protein.'

Businessline, in association with NABARD, is hosting a Millets Conclave in Hyderabad on Friday (September 15) to discuss various aspects of millets, right from its yield to exports, marketing and health and nutritional aspects.

 

The crux of the conclave will be panel discussions on ways to improve the nutritional value, and financial security of stakeholders in all sectors involved in millets.

 

The inaugural address will be by NABARD chairman Shaji K.V., followed by special addresses by secretary (DARE) and Director-General, ICAR, Himanshu Pathak, and APEDA chairman Abhishek Dev.

 

The panel on ‘millets for food security’ will have B Uday Bhaskar, Chief General Manger, NABARD; ED Israel Oliver King, Director, Biodiversity, MS Swaminathan Research Foundation, and Saraswathi Malluvalasa, CEO, Arogya Millets Producer Co Ltd, as panellists. The session on improving millet yield will see TE Nagaraja, Prof, Plant Breeding & Head, ICAR Small Millets; GV Ramanjaneyulu, CEO of Centre for Sustainable Agriculture; Ramon Peachey, Director, Communications, ICRISAT, as panellists.

 

 

The session on ‘increasing millet exports’ will see RP Naidu, AGM, APEDA; Raj Seelam, MD, Sresta Natural Bio Products Pvt Ltd; Vishala Reddy, Director, Millets Bank; Nitin Gaikwad, Sr Manager, ITC Agri-Business on the panel. There will be a panel on ‘health and nutritional seurity’ which will feature a presentation by Devraj JP, Scientist, National Institute of Nutrition, along with a fireside chat with Krishna Ella, Chairman, Bharat Biotech.

 

A panel on ‘value addition and branding millets’ will have Ashutosh Deshpande, Head of Value Chain, Reliance Foundation; S Kiran, ED, VIKASA; Raju Bhupati, CEO, TrooGood and Rishika Reddy, ED, Millets Marvels.

 

The valedictory session will see C. Tara Sathyavathi, Director, Indian Institute of Millets Research, speaking on the progress in millet yields and consumption.

 

The Associate Partners are APEDA and TrooGood while the TV Partner for the event is NewsX. The event can be watched live on September 15 on www.thehindubusinessline.com

 

India is the top producer of millets in the world and has many types of nutri-cereals. The COVID pandemic and rising health concerns and consciousness have resulted in consumers turning to nutri-cereals. The Indian government has realised the key role that millets are likely to play in the future and has impressed upon the United Nations to announce 2023 as the Year of Millets.

The UNDP and NABARD have joined forces through an MoU to create data-driven innovations in agriculture and food systems for the benefit of smallholder farmers. The UNDC's full form is the United Nations Development Programme. However, they will collaborate by sharing open-source data to develop new products, transfer technology, and influence agricultural policies. UNDP will contribute its expertise in open innovations and data science to help NABARD incorporate data-driven decision-making into agricultural investments.

 

As per the UNDC report, The partnership involves improving and sharing collaborative digital resources like DiCRA, which provides open access to geospatial data for climate-resilient agriculture. With UNDP's support, NABARD will host and maintain DiCRA, using its datasets for policy and research. This five-year collaboration aims to promote climate action and economic empowerment in rural India. NABARD's Chairman, Shaji KV, is excited about the collaboration and envisions further cooperation with UNDP.

 

Reiterating UNDP's dedication, Isabelle Tschan, Deputy Resident Representative, stated, 'UNDP is firmly committed to this cause. Agriculture, which employs 80% of rural women in India, represents the primary source of livelihoods and is particularly susceptible to the effects of climate change. DiCRA employs advanced data science and machine learning techniques to distinguish farms that are resilient to climate change from those that are highly vulnerable.

 

These innovative uses of open data can highlight best practices, optimize agricultural investments, and protect communities against risks. Partnering with NABARD will enhance our efforts to promote sustainable agricultural practices and secure the livelihoods of small-scale farmers, especially women while reducing their vulnerability.

 

This partnership will facilitate the analysis of agricultural trends over time, offering insights to guide investment decisions in areas like watershed management, micro-irrigation, warehouse optimization, and climate-related initiatives. This collaboration will bolster the data resources of both UNDP and NABARD.

India and Saudi Arabia agreed Monday to expand trade and security ties, two days after their leaders and others attending a Group of 20 summit announced a new railways and port corridor deal that will link India, Middle East and Europe.

 

Indian Prime Minister Narendra Modi and Saudi Arabia’s Crown Prince Mohammed bin Salman met in New Delhi and chaired a meeting of the India-Saudi Arabia Strategic Partnership Council. The two leaders discussed issues ranging from energy security, trade and investment to defense, health care and food security, India’s foreign ministry spokesperson Arindam Bagchi said.

 

The India-Saudi Arabia Strategic Partnership Council, established in 2019, serves as a platform between the two countries to increase ties.

 

In a televised press statement, Modi called Saudi Arabia one of India’s 'most important strategic partners.'

 

He said the 'corridor will not only connect the two countries, but will also strengthen economic cooperation, energy development and digital connectivity between Asia, West Asia and Europe.'

 

During last week’s G20 summit, India, Saudi Arabia, the United States, the European Union and other countries announced an ambitious rail and shipping corridor that will link India with the Middle East and Europe in a bid to strengthen economic growth and political cooperation.

 

The corridor would help to boost trade, transport energy resources and improve digital connectivity. It would include India, Saudi Arabia, the United Arab Emirates, Jordan, Israel and the European Union, said Jake Sullivan, Biden’s national security adviser.

 

Signatories hope it can help integrate India’s vast market of 1.4 billion people with countries to the west, offer a counterbalance to lavish Chinese infrastructure spending, boost Middle Eastern economies and help normalize relations between Israel and Gulf Arab states, including Saudi Arabia.

 

Prime Minister Benjamin Netanyahu called the initiative 'a cooperation project that is the greatest in our history'

 

Ahead of the talks, Prince Mohammed was accorded a ceremonial welcome at the Rashtrapati Bhavan Presidential Palace in New Delhi. He is on a three-day trip to India that included the G20 summit.

 

India views Saudi Arabia as one of its most important strategic partners in the Middle East. Trade between the countries stood at over $52.8 billion in the fiscal year 2022-2023.

 

India also has warm ties with Israel, with Modi and Netanyahu enjoying a close personal friendship.

Poultry farms in Namakkal are coming to the rescue of Sri Lanka, which is facing an egg crisis.

 

Under the Bay of Bengal Initiative for Multi-sectoral Technical and Economic Corporation (BIMSTEC), India will be annually exporting eggs worth Rs 350 crore to Sri Lanka’s State Trading Corporation to help the island nation tide over the crisis, according to Dineshkumar Gurusamy, chairman of India BIMSTEC trade council and founder of Aetram Group of Companies.

 

Due to the economic crisis in the island nation, egg price has skyrocketed to Lankan Rs 65 (Indian Rs 16). This was brought down to around Rs 13 due to eggs being imported from India, said Guruswamy.

 

He was speaking to TNIE after the BIMSTEC trade office was opened in Chennai in the presence of Myanmar Ambassador U Moe Kyaw Aung to promote India’s vision after the G-20 presidency.

 

Hit by an unprecedented economic crisis for more than a year, Sri Lanka faced a severe shortage of essential food and the country couldn’t produce eggs as animal feed and other necessities for the poultry industry were not available due to the dollar crunch. 

 

Sri Lankan Cabinet had approved the proposal to import over 90 million chicken eggs per month from India to help domestic consumers buy eggs at a fair price. Guruswamy said 90 million eggs will be imported from Ponni Poultry from Namakkal.

 

'But we are looking at procuring eggs from other farms also as the demand is more,' he said.

 

Supply from India would result in bringing down the prices of eggs as it would reduce the demand and supply gap, he added. 

 

During the event, BIMSTEC signed a memorandum of understanding with Sri Lanka in trading of eggs, chillies, onion, pulses, grains, minerals and chemicals.

 

The MoUs signed are worth around Rs 1,000 crore, said Guruswamy.

 

A total of 140 tonnes of dry chilly per week from Anushka Impex will be exported from Guntur while 500 tonnes of onions per week will be imported from Nashik.

 

India, Sri Lanka, Bangladesh, Myanmar, Thailand, Bhutan and Nepal are members of BIMSTEC fostering closer ties among nations bordering the Bay of Bengal.

 

Moe Kyaw Aung said India is the fifth largest trading partner of Myanmar. He wanted industries in India to invest in Myanmar while urging India to become the largest trading partner.

 

The Asian Development Bank is in the process of developing a BIMSTEC Grid Interconnection master plan. Policies and the master plan will be finalised in the next meeting of the working group, said Dr Asif Iqbak, president of the India Economic Trade Organisation. 

 

He said that India is looking at alternative payment mechanisms to boost trade ties with nations like Iran, Russia, Cuba and others. 

 

Tackling a crisis

 

 BIMSTEC signs pact with Lanka for trade in eggs, chillies, onion, pulses, grains & chemicals

 Sri Lanka couldn’t produce eggs as animal feed were not available due to the dollar crunch

 Supply from India may reduce egg price as it would reduce the demand and supply gap

After a three year lull brought on by the Covid pandemic, mango exports have gone strong this year with the Mumbai airport witnessing a 318 % jump in the fruit's exports this year versus 2022.

In 2022, 1,123 tons of mangoes we're exported from Mumbai airport, the number jumped to 4,700 tons this year, said a Mumbai International Airport Ltd spokesperson

The recent approval granted by the United States Department of Agriculture (USDA) for the export of Indian mangoes to the United States has led to increased export volumes. The approval comes after a hiatus in mango exports since 2020, primarily due to travel restrictions imposed on the USDA inspectors which stopped them from visiting India during the COVID-19 pandemic.

To handle mangoes and other perishable cargo such as fruits and vegetables, the airport has a temperature-controlled perishable facility with an annual capacity of 1,50,000 metric tons, said MIAL.

But India's leading airport for perishable cargo for three consecutive years has been Bengaluru (BLR), which is also the third busiest airport in India for passenger and air traffic.

'The BLR Airport has maintained its dominant position in the export of perishable goods, with 27% share in total cargo volumes across the Indian air cargo market and 41% share within airports in southern India,' said a BLR airport spokesperson.

 

'The airport witnessed growth in the export of perishable cargo, handling a record tonnage of 53,751 metric tonnes (MT) in financial year 2022-2023 (FY23). This represents a 3% increase compared to the previous year (FY22) when the airport handled 52,366MT of perishable cargo,' the official added. Among perishable goods, BLR Airport led in the export of poultry and floriculture/flowers in India with a 9% increase compared to the previous year.

Oman, Qatar, Singapore, Maldives, UAE, Kuwait, and the UK emerged as the top destinations for international exports, in FY23. 'The volume of perishable goods transported to Maldives and Kuwait rebounded to pre-COVID levels in FY23 and experienced a 50% growth compared to the previous year. The export of perishable goods to the United States has also tripled compared to FY22,' the BLR spokesperson added.

The Government today said that India is the largest export partner of Bangladesh; more so than Japan and China. Speaking at exploring new trade routes, India's North East to the Bay of Bengal via Bangladesh Transit Agreement in Agartala, joint secretary (Bangladesh and Myanmar) in the ministry of external affairs Ms Smita Pant said that the neighbouring country's export has touched a new high from 450 million US dollars to 2 billion US dollars.

 

She said the Agartala-Akhaura rail link project is almost complete on the Indian side and will be inaugurated by the end of this year. She said the work is under progress on the Bangladesh side, adding that it will be the seventh rail link connecting India with the neighbouring country.

 

The other five operational railway lines between the two countries are Petrapole to Benapole, Gede to Darshana, Singhabad to Rohanpur, Radhikapur to Birol and Haldibari to Chilahati. The seventh rail line will be connecting Assam.

 

Ms. Pant said, apart from trade and investment, the Government's Act East Policy is premised on connectivity and strong people to people ties.

With the decision to resolve six outstanding World Trade Organisation (WTO) disputes between the US and India through Mutually Agreed Solutions in June 2023, India has withdrawn additional duties on eight US origin products, including apples, walnuts and almonds vide notification number 53/2023 (Custom).

 

Additional duties of 20% each on apples and walnuts and Rs 20 per kg on Almonds were imposed on the US's products in 2019 over and above the Most Favoured Nation (MFN) duty as a retaliation to the US's state protectionist measure of increasing tariffs on certain steel and Aluminium products. These additional duties imposed by India on US-origin products have been withdrawn as the US agreed to provide market access to Steel and Aluminium products under the exclusion process. There is no reduction on the Most Favoured Nation (MFN) duty on apples, walnuts and almonds, which still applies to all imported products, including US-origin products, at 50%, 100% and Rs 100 per kg, respectively.

 

Further, DGFT, vide its notification number 05/ 2023 dated 8 May 2023, made an amendment in import policy for Apples under ITC (HS) 08081000 by applying MIP (Minimum Import Price) of Rs 50 per Kg for imports from all countries except Bhutan. Therefore, this MIP will also apply to apples from the US and other countries (excluding Bhutan). This measure would protect against the dumping of low-quality apples and from any predatory pricing in the Indian market.

 

This measure will not result in any negative impact on domestic apple, walnut and almond producers. Rather, it will result in competition in the premium market segment of apples, walnuts and almonds, thereby ensuring better quality at competitive prices for our Indian consumers. Thus, the US apples, walnuts and almonds would compete on the same level playing field as all other countries.

 

The market share of the US apples dwindled as other countries benefited from the imposition of additional retaliatory duties on the US apple and walnut imports. This is evident in the increase of apple imports from countries besides the US, from US$ 160 million in FY 2018-19 to US$ 290 million in FY 2022-23. Turkey, Italy, Chile, Iran, and New Zealand emerged as prominent apple exporters to India, effectively acquiring the market share once held by the US. Similarly, in the case of walnuts, the imports increased from US$ 35.11 million in FY 2018-19 to US$ 53.95 million in FY 2022-23, and Chile and UAE became the largest exporters to India. In the last three years, the import of almonds has been about 233 thousand MT, while domestic production is only 11 thousand MT, and India is highly dependent on imports. Therefore, the removal of additional duties will now ensure fair competition among the countries which are exporting these products to India.