India’s imports of lentils (masur) are set to rise this year on higher consumption as the production of other key pulses such as tur, moong and urad is seen lower on erratic weather. Based on the current import trend, the trade estimates India’s lentils purchases would rise by over a million tonnes this financial year over previous year’s 8.58 lakh tonnes.

 

'Masur imports from April till now have already crossed half a million tonne mark. Another 1.5-2 lt are on the way. We expect the masur imports to cross over a million tonnes this financial year,' said Bimal Kothari, Chairman, India Pulses and Grains Association (IPGA) the apex trade body.

 

India’s production of lentils during 2022-23 stood at over 15.8 lt, per third advance estimates released in May, higher than previous year’s 12.69 lt. Lentil imports, which touched a high of 11.16 lt in 2020-21, had dropped to 6.67 lt during 2021-22 and are seen rebounding.

 

'Prices of masur in mandis are hovering around Rs.61-62 per kg around the MSP levels and there’s nothing much to worry about as there is regular supply,' Kothari said.

 

US tariff removal

India imports lentils mainly from Canada and Australia and the latest move to remove the retaliatory customs tariff on imports from the United States may widen the sourcing base.

 

'The US produces more of green lentils, while in India red lentils are widely consumed. Prices are at a high in the US. We will have to see whether the US is competitive in the red lentils,' Kothari said. Production in Canada this year was a bit lower at 1.2 million tonnes, while Australia, where the harvest would begin in November, is seen harvesting 1.3 million tonnes, Kothari said.

 

Rahul Chauhan of IGrain India said the removal of tariff on US lentils may aid the Indian imports as the consumption of other variety of pulses is seen going up with the production of key pulses such as tur, moong and urad seen taking a hit. US produces around 2.5 lakh tonnes of lentils of which around 60 per cent is green lentils. For the US red lentils, besides India, Turkey is a major buyer.

 

Modal prices of masur in the mandis of producing regions of Uttar Pradesh are hovered around Rs.5,900-7,050 per quintal and in Madhya Pradesh in the range of Rs.5,100-6,200 over the past couple of days. Retail prices of masur dal was around Rs.92.33 per kg in UP and Rs.90.75 in M.P. on Friday, per the Ministry of Consumer Affairs data.

The Ministry of Food Processing Industries (MoFPI) has issued FAQs (Frequently Asked Questions) in relation to the queries raised by the prospective entrepreneurs during a meeting held at the ministry in the fourth week of August against operational scheme guidelines of Creation/Expansion of Food Processing and Preservation Capacities issued in June this year.

 

On the question of mixed sectors like dairy with food & vegetable processing under single application, the ministry clarified that separate applications are required to be submitted under the CEFPPC scheme. 

 

Further, the ministry clarified that new additional technical civil work specific to the expansion/upgradation/modernisation will be considered for grants-in-aid calculations under the scheme. Apart from this, new plant & machinery specific to the project guidelines will also be considered for the grant while a certificate from a CA is required as a proof for income of the applicant under the scheme for the financial year.

 

And, the applicants are required to submit the application with all the specified/required documents to avail any grant for the purpose of expansion, modernisation or upgradation under the scheme.

 

The ministry has, meanwhile, stated that projects for expansion/modernisation/upgradation are not allowed for availing grant-in-aid after two years under the CEFPPC scheme, in case the same unit had already availed the grant under the same scheme.

 

The G20 Summit on Saturday reiterated their commitment towards reform of the World Trade Organization (WTO), dispute settlement and that trade and environment policies should be mutually supportive consistent with global trade rules and multilateral environmental agreements.

 

In the New Delhi Leaders’ Declaration, the grouping- which added the African Union as its new permanent member- emphasised on avoiding discriminatory green economic policies.

 

'We renew our commitment to ensure a level-playing field and fair competition by discouraging protectionism and market distorting practices, to foster a favourable trade and investment environment for all,' the bloc said, highlighting its commitment to 'positive outcomes at the WTO’s Thirteenth Ministerial Conference (MC13).'

 

The 37-page declaration has the trade and investment agenda in a subhead titled 'Unlocking Trade for Growth.'

 

'We affirm that a rules-based, non-discriminatory, fair, open, inclusive, equitable, sustainable and transparent multilateral trading system, with WTO at its core, is indispensable,' they said.

 

The statement assumes significance as the WTO’s Dispute Settlement Body (DSB), is dysfunctional and a crucial point of discussion ahead of the upcoming ministerial meeting of the trade body.

 

'We will support policies that enable trade and investment to serve as an engine of growth and prosperity for all,' it said.

 

In the declaration, the G20 referred to the Jaipur Call for Action for enhancing micro, small and medium enterprises (MSME) access to information to promote their integration into international trade.

 

Digitalization of trade documents, enhancing information access to MSMEs, framework to map global value chains, best practices on mutual recognition agreements for professional services, and a standards dialogue, were the five outcomes of the G20 Trade and Investment Ministers Meeting last month which culminated into the Jaipur Call for Action.

 

As per the New Delhi Leaders’ Declaration, the G20 Generic Framework for Mapping GVCs will help members identify risks and build resilience.

 

The members said that trade and environment policies should be mutually supportive, consistent with WTO and multilateral environmental agreements.

 

Recognising the importance of WTO’s ‘Aid for Trade’ initiative to enable developing countries, notably LDCs to effectively participate in global trade, including through enhanced local value creation, they said: 'We welcome all efforts to mobilize necessary resources in this regard.'

The Agricultural & Processed Food Products Export Development Authority (APEDA) has facilitated the first-ever consignment of banana plant products from Varanasi to the UAE by air, boosting agricultural exports. APEDA plans to integrate more farmer producer organizations into the export supply chain. The Purvanchal region has seen a surge in demand for its perishable products, leading to a 248% increase in agricultural product exports in Q1 2022-23 compared to the same period last year. The region has become a preferred export destination for horticultural products, catering to Gulf countries, European nations, Nepal, and Bangladesh.

 

In a boost to agricultural products exports, the Agricultural & Processed Food Products Export Development Authority (APEDA), ministry of commerce & trade, has facilitated the maiden consignment of banana plant products – including fruit, flower, and leaf – from Varanasi to the United Arab Emirates (UAE) by air.

 

During the virtual flag-off ceremony, APEDA chairman Abhishek Dev emphasised the immense potential of agricultural products exports from Uttar Pradesh.

 

Reaffirming APEDA’s commitment to fostering international market linkages, Dev said, “We have planned to integrate more farmer producer organizations (FPOs) into the agricultural export supply chain.”

 

The banana products consignment was sourced from the Zamania Fed Farmer Producer Company, Gazipur, UP and transported via air route from Lal Bahadur Shastri International (LBSI) Airport to the UAE on Monday, said Dr CB Singh, deputy general manager APEDA, Uttar Pradesh, Uttarakhand, Bihar.

 

Singh said that these developments are the result of APEDA’s sustained efforts, driving farmers and FPOs in the Purvanchal region to engage in export-oriented production. The region’s perishable products have seen a surge in demand in the international market, contributing to a 248% increase in agricultural product exports in the first quarter of the current fiscal compared to the same period in the previous year (2022-23).

 

In the financial years 2021-22 and 2022-23, 157 metric tonnes and 561 metric tonnes of vegetables and fruits were exported from Uttar Pradesh, said Dr Singh.

 

APEDA’s establishment of an office in Varanasi in 2020, with support from the Uttar Pradesh government, marked a significant milestone.

 

Despite the challenges posed by the pandemic, the region has emerged as a preferred export destination for horticultural products, including green chillies, okra, pointed gourd, green peas, mangoes, litchi, bananas, Ivy Gourd (kundru), guava, drumstick, jackfruit, brinjal, amla, lemon, and more, catering to Gulf countries, European nations, Nepal, and Bangladesh, said Dr Singh.

 

Currently, the Varanasi region boasts numerous exporters, and the facilitation of agricultural product exports via air routes has been made possible through the establishment of robust quarantine and custom clearance facilitation centers at the LBSI Airport.

There is a huge potential to increase exports of organic agri products as the global market stood at about USD 135 billion and India's shipments are only over USD 700 million, a top government official said on Thursday. Commerce Secretary Sunil Barthwal said that the industry should also work on improving the quality and standards of these products.

 

'Organic food segment is an important area. We need to work on this. The world market is about USD 135 billion and India's share is USD 700 million, so there is a huge potential in this... We are focusing on the sector,' Barthwal said here while inaugurating a fair of organic products - BIOFAC INDIA at India Expo Mart in Greater Noida. It was organised by APEDA.

 

He also said that there is a need to promote Indian standards of these goods and comply with the standards of importing countries.

 

The secretary urged the industry to promote the logo of India organic as it would help in promoting the credibility of the products in the international market.

 

He added that there are several goods which India is producing organically like avocado and passion fruit and there is a need to increase awareness about these domestically-produced products.

 

'Agricultural & Processed Food Products Export Development Authority (APEDA) should run a campaign about these products which are available in India,' Barthwal said, adding these exports can be further promoted through e-commerce medium and there is a need to establish the credibility of Indian organic goods.

 

He announced that soon the commerce ministry would convene a meeting of all the stakeholders of the sector to resolve their issues, if any.

 

Additional Secretary in the department of commerce Rajesh Agrawal said that APEDA will play a critical role in increasing exports.

 

Agrawal added that the ministry is working to create a platform for the sector where industry can flag their issues.

 

About industry demands to increase the number of certification bodies, he said there are 30 and the ministry would look into the issue of increasing the number.

 

APEDA Chairman Abhishek Dev said that they are working with the industry to promote the exports.

 

'We do hope that our exports will increase,' Dev said, adding the APEDA is implementing the National Programme for Organic Production (NPOP) which involves the accreditation of certification bodies, standards for organic production, promotion of organic farming and marketing.

 

The NPOP standards for production and accreditation have been recognised by the European Commission and Switzerland for unprocessed plant products as equivalent to their country standards.

 

With these recognitions, Indian organic products duly certified by the accredited certification bodies of India are accepted by the importing countries.

 

As on March 31 this year, total area under organic certification process (registered under National Programme for Organic Production) is 5,391,792.97 hectares of cultivable area and another 47,80,130.56 hectares for wild harvest collection.

 

Among all the states, Madhya Pradesh has covered the largest area under organic certification followed by Maharashtra, Gujarat, Rajasthan, Odisha, Karnataka, Uttarakhand, Sikkim, Chhattisgarh, Uttar Pradesh and Jharkhand.

 

India produced around 2.9 million tonnes (2022-23) of certified organic products which includes all varieties of food products like oil seeds, fibre, sugar cane, millets, pulses, medicinal plants, tea, coffee, fruits, spices, dry fruits, vegetables, and processed foods.

 

Exports in 2022-23 was about Rs 5,525.18 crore (USD 708.33 million). Organic products are exported to the USA, European Union, Canada, Great Britain, Switzerland, Turkey, Australia, Ecuador, Korea Republic, Vietnam, and Japan.

India and 10-nation ASEAN on Thursday agreed to deepen their comprehensive strategic partnership with concrete actions through practical implementation of the 'Plan of Action' to implement the ASEAN-India partnership for peace, progress and shared prosperity. In a joint statement on maritime cooperation, it was agreed to support India's connectivity initiatives in the region to ensure seamless connectivity in the Indo-Pacific, besides boosting cooperation in a range of areas including blue economy, space and food security among others.

 

The two sides agreed to deepen their comprehensive strategic partnership with concrete actions through practical implementation of the 'Plan of Action' to implement the ASEAN-India partnership for peace, progress and shared prosperity, said the statement.

 

They reaffirmed the importance of maintaining and promoting peace, stability, maritime safety and security, freedom of navigation and overflight in the region, and other lawful uses of the seas and unimpeded lawful maritime commerce and to promote peaceful resolutions of disputes, in accordance with universally recognised principles of international law, including the 1982 United Nations Convention on the Law of the Sea (UNCLOS), the statement said.

 

'We support the full and effective implementation of the Declaration of the Conduct of the Parties in the South China Sea (DOC) and look forward to an early conclusion of an effective and substantive Code of Conduct in the South China Sea (COC) in accordance with international law, including the 1982 UNCLOS,' it said.

 

The reference is significant in the backdrop of China's increasing military assertiveness in the South China Sea and its ongoing maritime territorial dispute with the Philippines.

 

The two sides agreed to further strengthen ASEAN-India cooperation on maritime safety and security, promote cooperation in a Blue Economy and develop new and renewable energy including marine-based renewable energy, among others.

 

The Association of Southeast Asian Nations (ASEAN) is considered one of the most influential groupings in the region, and India and several other countries including the US, China, Japan and Australia are its dialogue partners.

 

ASEAN-India dialogue relations started with the establishment of a sectoral partnership in 1992. This graduated to a full dialogue partnership in December 1995 and a summit-level partnership in 2002. The ties were elevated to a strategic partnership in 2012.

 

The 10 member countries of ASEAN are Indonesia, Malaysia, the Philippines, Singapore, Thailand, Brunei, Vietnam, Laos, Myanmar and Cambodia.

 

The ties between India and ASEAN have been on a significant upswing in the last few years with the focus being on boosting cooperation in the areas of trade and investment as well as security and defence.

British Prime Minister Rishi Sunak on September 6 said there was 'still some way to go' for a free trade pact with India to be finalised, but appeared confident that the final outcome will be a 'forward-looking' and 'modern' deal that would benefit both sides and facilitate shared ambition of doubling trade by 2030.

 

In an exclusive interview to PTI, the first Indian-origin British Prime Minister said the trade deal could help Indian exporters gain access to the British market, including India's 48 million small and medium enterprises.

 

'A modern, forward-looking free trade agreement can put us firmly on the path to our shared ambition of doubling UK-India trade by 2030,' Mr. Sunak said.

 

'It's very exciting to have this opportunity to expand our trade relationship, and to be the first European country that India has negotiated a free trade deal with,' he said.

 

The Prime Minister’s responses to PTI’s questions were sent by email.

 

India and the U.K. are currently negotiating the ambitious free trade agreement that is expected to open new vistas of economic engagement between the two countries.

 

'A trade deal could help Indian exporters gain access to the UK market, including India's 48 million small and medium enterprises. We want a deal that slashes tariffs and red tape, helping Indian consumers and businesses get easier access to the UK goods they already enjoy,' he said.

 

The British premier said good progress has been made in the negotiations and that there is still some way to go to finalise the pact.

 

'We've made good progress in closing chapters. Round 12 of negotiations took place last month and were the hardest yet — covering complex, sensitive, and commercially meaningful issues including goods, services, and investment,' he said.

 

'There is still some way to go, but I'm confident we'll be able to agree to a deal which works for both the UK and India,' he said.

 

'And, of course, we hope to go further still, including by finalising the first Free Trade Agreement India has ever agreed with a European country. I remain confident that we can strike a deal which benefits both the UK and India.' The British prime minister said every bit of the trade between the two countries represents new jobs, more choice for consumers and a stronger link between the British and Indian people.

 

'Our trade relationship is already worth Rs 3.5 lakh crore a year — I want that number to be even higher. Every bit of trade between our countries represents new jobs, more choice for consumers and a stronger link between the British and Indian people,' he said.

 

India and the U.K.: Crafting a new legacy

In April last year, the two sides had set a Deepavali deadline for concluding the free trade agreement but the deal could not be finalised in view of differences over certain issues as well as political developments in the U.K.

 

The India-U.K. relationship was elevated to a Comprehensive Strategic Partnership during the India-U.K. virtual summit held between Prime Minister Narendra Modi and his then British counterpart Boris Johnson in May 2021.

 

At the summit, the two sides adopted a 10-year roadmap to expand ties in the key areas of trade and economy, defence and security, climate change and people-to-people connections among others.

India has removed additional duties on about half a dozen US products, including chickpeas, lentils and apples, which were imposed in 2019 in response to America's decision to increase tariffs on certain steel and aluminium products. India had imposed these duties on 28 US products in 2019 in retaliation to the US' move.

 

The finance ministry through a notification dated September 5 informed about removal of duties on the products, including chickpeas, lentils (masur), apples, walnut in shell and almonds fresh or dried, as well as almond shelled.

 

The move comes ahead of US President Joe Biden's visit to India to attend the G20 Summit on September 9-10, which would be preceded by a bilateral meeting with Prime Minister Narendra Modi on Friday.

 

During the prime minister's state visit to the US in June, both countries decided to terminate six WTO (World Trade Organization) disputes and also remove the retaliatory tariffs on certain US products.

 

As part of the agreement, India will be removing additional duty on chickpeas (10 per cent), lentils (20 per cent), almonds fresh or dried (Rs 7 per kg), almonds shelled (Rs 20 per kg), walnuts (20 per cent), and apples fresh (20 per cent).

 

In July, Minister of State for Commerce and Industry Anupriya Patel in a written reply to the Rajya Sabha had said the government has decided to remove retaliatory customs duties on import of almonds (fresh or dried, in shell), walnuts, chickpeas, lentils, apples, medical diagnostic reagents, and boric acid.

 

The removal of retaliatory tariffs or cuts in import duty with the US did not result in a loss to India, she had said.

 

The US is the largest trading partner of India. In 2022-23, the bilateral goods trade increased to USD 128.8 billion as against USD 119.5 billion in 2021-22.

The government, which is looking to step up the supply of pulses from all possible sources, has abolished customs duty on US-origin masur a day before the arrival of US President Joe Biden for the G20 summit.

 

The government has also made it mandatory for local stocks of masur to be reported weekly to quell attempts at cartelisation and manipulation aimed at restricting supplies.

 

India had announced it would remove retaliatory duties on certain US products, including masur, during Prime Minister Narendra Modi’s visit to the US in June. Customs duty of 22% on masur of US origin was made zero effective September 6. This will ease the import of masur directly from the US, instead of being routed via Canada.

 

India is trying to increase supplies through imports and by keeping close watch on domestic stockpiles amid shortages of different pulses due to lower production in the previous year. There are worries about the next crop as well, due to suboptimal monsoon rainfall.

 

The Department of Consumer Affairs issued an advisory on Wednesday for mandatory stock disclosures of masur. The government wants to increase the masur buffer stock by procuring it around the minimum support price levels. However, 'Nafed and NCCF (National Cooperative Consumers Federation of India) had to suspend their tenders to purchase imported lentils due to exorbitantly high bids received from few suppliers amid hints of cartelisation,' a government release said. The government said market manipulation would be punished.

 

'At a time when lentil import flow from Canada and tur imports from African countries increase, a few players are trying to manipulate the market against the interest of the consumers and the nation,' said consumer affairs secretary Rohit Kumar Singh. 'The government is watching developments very closely and will initiate stringent measures to get the stock released into the market so availability of all pulses at reasonable prices in the festival season is ensured.' The Department of Consumer Affairs won’t hesitate to take 'stern action against those trying to hurt the interests of Indian consumers and farmers in an unscrupulous manner,' he said. TUR & MOONG Tur imports have been delayed, while moong may have to be bought from overseas. The wholesale price of whole unprocessed tur has increased nearly 25% from `100 per kg in July to around `128 per kg this month. Delays in shipments from East Africa have been driving up tur prices.

 

'As compared to about 1 lakh tonne of tur dal, which was shipped by this time of previous year, we have just about 2,500 tonnes of tur shipped so far this year,' said Satish Upadhyay, a veteran pulses importer in Maharashtra. Trade insiders said the Mozambique government has tried to impose a minimum export price. 'As compared to the average price in the previous five years, $550-600 per tonne, the price set by Mozambique is $800-900 per tonne (this year),' said Upadhyay.

 

In the case of moong, the Indian Pulses and Grains Association (IPGA) has told the central government that India may have to open up imports if the kharif output falls significantly. 'We were expecting a bumper production of moong from Rajasthan, which had received excellent rainfall from April to June,' said IPGA president Bimal Kothari.

 

'However, there was almost no rainfall in August, which can adversely affect the moong production of Rajasthan.' The area sown with moong in states such as Maharashtra and Karnataka has declined 40-50%

Agreeing to exchange information on rice and acknowledging the multiple benefits of millets, the ASEAN-India Summit held here on Thursday decided to strengthen cooperation on food security and nutrition through promoting mutual trade and investment. The Member States of the Association of Southeast Asian Nations (ASEAN) and India in the 'ASEAN-Indian Joint Leaders' Statement on Strengthening Food Security and Nutrition in Response to Crises' declared to 'exchange information on national policy frameworks, particularly for rice and other priority crop commodities.'

 

Rice is a staple and critical component of regular diet for billions of people across Asia. The challenges are many, including the changing climatic conditions, especially lower rainfall that has shrunk rice production, and other factors.

 

In his address at the 20th ASEAN-India summit here in the Indonesian capital, Prime Minister Narendra Modi described the 10-nation grouping as the epicentre of growth as the region plays a crucial role in global development.

 

The statement also welcomed the 'ASEAN Leaders' Declaration on Strengthening Food Security and Nutrition in Response to Crises' adopted on September 5, 2023, and committed to maintaining and supporting ASEAN as the epicentrum of global growth and 'to increase concerted efforts between ASEAN and India in sustaining supply in the food trade supply chain despite disruptions.'

 

Through the September 5 statement, the ASEAN nations had agreed to ensure 'unimpeded trade and flow of agri-food products and essential farm inputs' by facilitating logistics and transport distribution, refraining from imposing unjustified trade barriers, restrictions and other trade-distortive measures.'

 

The ASEAN-Indian Joint Leaders' Statement also acknowledged the nutritional richness, climate resilience, health benefits and ecological sustainability of millets.

 

'(The ASEAN-India) support efforts to mainstream the cultivation and harvesting of millets for ensuring global food security, promoting biodiversity and transforming agri-food system,' the statement read as the focus on millets coincided with the International Year of Millets with millets use and production pushed globally and domestically by Prime Minister Narendra Modi.

 

The members of the ASEAN recognised the inter-connectedness and vulnerabilities of the Indo-Pacific region in the face of regional and global challenges, such as the multidimensional impact of the COVID-19 pandemic, climate change, heightened volatility in the global financial market, and geopolitical tensions that impact among others, the global food and energy security, 'all of which could potentially affect economic and trade relations between ASEAN and India.'

 

As per preliminary ASEAN data, the two-way merchandise trade between ASEAN and India reached USD 77.0 billion in 2019, while total FDI inflows from India amounted to USD 2.0 billion, placing India as ASEAN's sixth-largest trading partner and eighth-largest source of FDI among ASEAN Dialogue Partners.

 

Aimed at strengthening cooperation on food security and nutrition, through promoting trade & investment, and sharing of information, experience, and best practices in the food, agriculture, forestry, and fisheries sectors, the ASEAN-India Joint Leaders' Statement said it also agrees to 'encourage financing climate-friendly technologies.'

 

These climate-friendly technologies would be encouraged in partnership with Multilateral Development Banks and development finance institutions on ASEAN-India mutually agreed terms, and adopting a climate-smart approach based on agricultural system models for sustainable agricultural production, the statement said.