The free trade agreement (FTA) talks with India are 'progressing' and Britain will only agree to a pact that works for the whole of the United Kingdom, British Prime Minister Rishi Sunak told his ministers at a Cabinet meeting in London on Tuesday. Ahead of his first visit to India as UK Prime Minister to attend the G20 World Leaders' Summit in New Delhi later this week, Sunak updated his top team on the ongoing trade talks which have completed 12 rounds of negotiations.

 

The British Indian leader described India as an 'indispensable partner' of the UK across all spheres of bilateral cooperation, which he is keen to strengthen further.

 

'He said negotiations around a free trade deal were progressing and that he would only agree an approach which worked for the whole of the UK,' notes a Downing Street readout of the Cabinet meeting.

 

'The Prime Minister said India was an indispensable partner of the UK, both economically and in addressing the global challenges all democracies are facing. He said we must now strengthen the UK-India relationship,' it said.

 

UK Business and Trade Secretary Kemi Badenoch, who has returned from a visit to India after talks with Commerce and Industry Minister Piyush Goyal last month, also updated the UK Cabinet on the FTA negotiations, saying that 'India is already one of the UK's largest trading partners, with a relationship worth GBP 36 billion a year'.

 

'The Prime Minister concluded Cabinet by setting out his desire to use our growing relationship in trade, defence, and technology to build a lasting and deep partnership with India which benefits the people of the UK for decades to come,' Downing Street said.

 

The 43-year-old leader is expected to receive a grand welcome when he arrives in New Delhi, with bilateral talks expected with Prime Minister Narendra Modi during the course of his stay. While the details of the visit are yet to be confirmed by Downing Street, some UK media reports have indicated that a sightseeing visit to Humayan's Tomb is expected to be on the agenda for Sunak and wife Akshata Murty.

The Indian government’s decision to allow exports of 1.43 lakh tonnes (lt) of white rice to Singapore, Mauritius and Bhutan through the National Cooperative Exports Ltd (NCEL) has been welcomed as a boost to the co-operative sector. 

 

But a section of the trade is of the view that NCEL, which was allowed to be set up by the Union Cabinet in January this year, lacks experience in the export market and may not stand up to the demands of buyers abroad. 'The Centre’s move to allow exports of white rice through NCEL is a welcome step. It will further boost the co-operative societies and also farmer producer organisations (FPOs),' said Rajesh Paharia Jain, a Delhi-based exporter.

 

Paddy FPOs to benefit

NCEL has been set up under the Multi-State Cooperative Societies Act, 2002. All cooperatives are eligible to become its members. Responding to a question last month in the Rajya Sabha, Union Minister for Home and Co-operation Amit Shah said NCEL will focus on 'exporting surpluses available in the co-operative sector by accessing wider markets beyond the geographical contours of the country, thereby, increasing the demand of Indian co-operative products/services'. 

 

NCEL will have an authorised share capital of ?2,000 crore in which the initial paid-up share capital will be ?500 crore. The initial contributions for the capital have been shared equally by Indian Farmers Fertilizer Cooperative (IFFCO), Krishak Bharati Cooperative (Kribhco), National Agricultural Cooperative Marketing Federation of India (Nafed), Gujarat Cooperative Milk Marketing Federation (GCMMF) and National Cooperative Development Corporation (NCDC). 'There are 160 FPOs that deal with paddy. Haryana co-operative federation HAFED trades in Basmati. Nafed and Kribhco purchase from the open market. And GCMMF is well-versed with not just procuring from farmers but also ensuring remunerative payment for them. In such circumstances, giving NCEL permission to export rice is a good decision,' said an agricultural expert who did not wish to identify.

 

A Kribhco official said rice exports would be done through procurement of rice from cooperatives and FPOs only as mandated by NCEL bylaw.

 

Govt’s objective

'The Centre is wrong in allowing only NCEL to export white rice to the three countries. Bureaucrats do not know much about trading. We can only pray that they will not damage our reputation,' said a South India-based trader without wishing to identify.

 

NCEL could probably handle exports now since there is no competition and it is the sole agency permitted. But when exports open up, the organisation could stand exposed, said the trader.

 

The agricultural expert said in 1990, 17 per cent of exports from the US were through the co-operatives sector and their share in the global market was nine per cent. 'The Indian government’s objective of floating the NCEL is to make the co-operative sector strong so that farmers can begin to be directly involved in exports,' the expert said.

 

'The motive of allowing NCEL to export seems good. But can it withstand the challenges in the global market? This is the main concern of the trade,' said a trade analyst. 

 

Reasons for the ban

The Centre allowed exports of 1.43 lakh tonnes of white rice to the three countries as a special case and on a government-to-government (G2G) basis following requests from the respective heads of State as the nations’ food security was under threat. 

 

While curbing rice exports as part of its efforts to tame surging prices and meet domestic demand, the government said it would consider G2G exports on grounds of food security. 

 

Though the area under rice has increased during the current kharif season, the Centre fears production could be lower in view of floods damaging paddy in north India and a long dry period affecting the crop in south India. 

 

Alex Ellis, the UK High Commissioner, on Monday (September 4) expressed unwavering support for the upcoming G20 Summit, emphasising the shared ambition between the G20 Presidency and member nations.

Ellis's remarks also underscored the UK's commitment to boosting India's efforts to expand the G20 and its eagerness to forge a comprehensive Free Trade Agreement (FTA) between the two nations.

In an interview with CNBC-TV18, Ellis noted that the G20 Summit is expected to echo the same level of ambition and determination seen during the G20 Presidency. He commended India's aspiration to bring more countries into the G20 fold, indicating the UK's steadfast support for this endeavor.

Ahead of the G-20 Summit in Delhi under India’s Presidency, Prime Minister Narendra Modi will visit Jakarta on 6-7 September to attend the 20th ASEAN-India Summit and the 18th East Asia Summit, being hosted by Indonesia as current Chair of ASEAN.

 

Modi has been invited to Indonesia by its President, Mr Joko Widodo.

The forthcoming ASEAN-India Summit will be the first Summit since the elevation of India-ASEAN relations to a Comprehensive Strategic Partnership in 2022.

 

The Summit will review the progress of India-ASEAN relations and chart the future direction of co-operation.

 

The East Asia Summit would provide an opportunity for leaders of ASEAN countries and its eight dialogue partners, including India, to exchange views on issues of regional and global significance.

 

A curated tour of the 1,200-acre Pusa-IARI campus has been organised on September 9 for the first ladies and spouses of the G20 leaders.

 

Millets will be the flavour of the day as not just cuisines, but startups dealing with 'super food', and celebrity chefs, and an exhibition will fete the visiting first ladies and spouses of G20 leaders as they visit the sprawling Pusa campus of IARI here while their better halves discuss geopolitics.

 

A curated tour of the 1,200-acre Pusa-IARI campus, the cradle of the green revolution in India, has been organised on September 9 for the first ladies and spouses of the leaders attending the G20 Summit to help them learn about India's rich agricultural heritage and taste a millet-based feast prepared by renowned celebrity chefs.

 

A majority of G20 leaders, including US President Joe Biden, French President Emmanuel Macron, Australian Prime Minister Anthony Albanese, German Chancellor Olaf Scholz, UK Prime Minister Rishi Sunak and Japanese PM Fumio Kishida, have already confirmed their participation at the summit.

 

According to official sources, the first ladies and spouses of the dignitaries will be guarded by the specially-trained men and women commandos of another paramilitary force -- Sashastra Seema Bal (SSB).

 

The first ladies and spouses of the participating heads of G20 countries have been extended a special invitation to an agriculture exhibition, said a senior government official associated with preparations.

 

They will have a unique opportunity to savour a millet-based feast prepared live by renowned celebrity chefs, including Kunal Kapur, Ajay Chopra and Anahita Dhondy.

 

Joining these chefs will be two culinary experts from the ITC group -- Kusha Mathur and Nikita Mehra.

 

In the 'Live Cooking Area', the chefs will prepare a 'full course meal' with a focus on millets.

 

From appetisers, salads, and main courses to desserts, the magic of millets will be showcased in its full glory.

 

The special guests will also get a first-hand experience of making rangoli using millets with two distinct themes -- 'Harmony of Harvest' and 'Unity in Sustenance'.

 

'The Ministry of Agriculture is adding a vibrant touch to the G20 Spouses Program at the NASC Complex with two exquisite millets based rangolis,' the official said.

 

These artistic creations will not only showcase India's expertise in integrated farming systems but will also highlight its significant role in bolstering global food and nutritional security.

 

Using indigenous agricultural crafts, ancient grains, and creative flair, these installations will encapsulate India's agricultural heritage and commitment to sustenance.

 

The first ladies and spouses will also get a chance to interact with farmers and agri-startups to learn about India's rich agriculture heritage, practices, and success stories.

 

The government has also planned a dedicated agriculture-themed excursion that will seek to acquaint the spouses with the strides taken across the vast agriculture space in India.

 

'An integral component of the event will be an exhibition of 15 startups that through unique and innovative solutions are integrating technology to address ground-level challenges and thereby digitising agricultural practices,' the official added.

 

The exhibition will cover the themes of 'Climate Smart Agriculture', 'Innovating the Agriculture Value Chain', 'Revolutionizing Agri-logistics and Supply Chains', 'Quality Assurance for Sustainable Consumption' and 'Millets: Sustaining Health, Empowering Agriculture'.

 

The guests from G20 members are also scheduled to interact with 22 enterprising women farmers from 11 millet-producing states who are orchestrating a millet renaissance in their respective milieu.

 

It may be mentioned that India's resolution to declare 2023 as the International Year of Millets (IYM) was supported by 72 members of the United Nations General Assembly, providing the country with a unique opportunity to promote millets on the global stage.

 

As a part of the exhibition an 'Agriculture Street' will also be on display, showcasing the agriculture value chain from Seeding to Feeding harmonising ancient agricultural practices with modern technological advancements.

 

The official further said the event will offer the spouses an immersive experience highlighting the remarkable diversity of Indian agriculture.

 

It will also provide a first-hand glimpse into the transformative role of technology and innovation in shaping the future landscape of the agricultural sector.

 

The agriculture value chain-themed stalls will display the first-hand journey of millets from the inception of seeds to the culmination of nourishing meals.

 

'The special guests will get to know the journey of millets from farm to fork.

 

The displays at the exhibition will offer a rare opportunity for distinguished guests to witness the integration of every step, all working in coordination to create meaningful value for end users,' the official added.

 

The visitors will also get a chance to interact with several Farmer Producer Organisations (FPOs), which have assumed a critical function within the supply chain, ensuring the accessibility of essential inputs for farmers.

 

Canadian Prime Minister Justin Trudeau, Indonesian President Joko Widodo, Saudi Arabia's Crown Prince Mohammed bin Salman and Brazilian President Luiz Inacio Lula da Silva are also among the G20 leaders who have confirmed their participation at the summit.

India’s maritime connectivity will get a big boost with Thai shipping line –Regional Container Lines (RCL)– deciding to upgrade its service, connecting major hubs in Southeast Asia, India and the Gulf countries. Saudi Arabia’ King Abdulaziz Port will now be part of the route for the shipping line, which will start from Cai Mep Port in Vietnam. It will then touch upon Laem Chabang in Thailand, Port Klang in Malaysia, Nhava Sheva in Mumbai, Jebel Ali just off Dubai, and Sohar in Oman besides the Saudi port. Trade and economic activities in the entire stretch are expected to surge amid changing power dynamics the world over.

 

The service will extend from the current 35 days to 42 days.

 

Though the RCL continues to deploy one vessel in this cargo service, an analyst said that at a later stage, more vessels could use this route.

 

'For India, this particular route will be hugely beneficial as New Delhi looks to integrate more with the Southeast Asian giants as well as the Gulf. This particular shipping line connects India with both the worlds and will enhance trade activities in the post Covid era,' the analyst told.

 

Later this year, the Mediterranean Shipping Company (MSC) is also slated to start a liner service from Saudi Arabia’s Jeddah Islamic Port, connecting Mundra and Nhava Sheva in India. This is expected to lead to a surge in economic activities between the Gulf nations and India.

 

After India and the UAE signed the Comprehensive Economic Partnership Agreement, New Delhi is now keen to ink the proposed free trade agreement at the earliest with the Gulf Cooperation Council (GCC) countries. Saudi Arabia and UAE will also join the BRICS bloc next year. India is already strengthening trade with these countries in its own rupee.

 

Meanwhile India and ASEAN have an FTA but the two are looking to review the existing treaty in a bid to make it more fruitful and effective for both.

 

India shares maritime  borders with Thailand, Malaysia, Myanmar, Bangladesh, Sri Lanka and Indonesia among other nations. Therefore for New Delhi it is key to boost maritime transport facilities. As India now looks to increase its cargo handling capacity at the ports by 300 per cent by 2047, connectivity with key hubs will benefit.

The National Agricultural Cooperative Marketing Federation of India (Nafed) and National Cooperative Consumers Federation (NCCF) have sold over 900 tonnes of onion during August 30-31 through online platform e-NAM, officials say.

 

The 900 tonnes sale includes 152 tonnes traded through inter-state transactions. The sale of onions through e-NAM platform was the government’s swift response to the traders’ protest in certain Maharashtra mandis, where they had halted auctions to oppose to the 40 per cent export duty imposed on onions. In response, the government directed both Nafed and NCCF to explore alternative avenues for releasing the surplus onion stock.

 

Sale objective

'The objective is to make the alternate route open for disposal as any disruption in supplies at any point of time could have a negative impact on our price control efforts,' said a government official involved in disposal of onion from buffer stock.

 

Nafed, which had initiated the disposal through e-NAM, has been able to sell 5,08.11 tonnes within a State after taking the physical stock from Lasalgaon, Maharashtra, while National Consumer Cooperative Federation (NCCF) has used both intra mandi within the State and inter-State transactions.

 

Both the agencies are hopeful of increasing sales through e-NAM if more traders are brought on the platform during auction, convincing them of the quality and logistics issues, sources said. The government has already facilitated on the e-NAM portal the logistics value chain in agri trade so that the buyers have the option to make arrangement for physical transport of the commodities, an official said.

 

After the government decided to offload onion in the market from the 3-lakh tonne buffer stock already created, before it was expanded to include another 2 lakh tonnes, NCCF has sold about 21,000 tonnes and Nafed about 15,000 tonnes. The Centre on August 11 announced that it would release onion in the open market from the buffer stock by targeting key markets in States or regions where retail prices are ruling above the all-India average rate.

 

Nafed has so far sent over 3,000 tonnes of onion to various mandis in Haryana, Punjab, and Himachal Pradesh and has sought the Consumer Ministry’s approval to start selling in mandis in Uttar Pradesh, official sources said. In Uttar Pradesh, major towns such as Lucknow, Varanasi, Prayagraj, and Kanpur are likely to be covered initially and later on other places may also be included depending on the response, sources said.

 

Quality assurance

NCCF sources said of the 152.5 tonnes sold through e-NAM as inter-State trade, 61 tonnes have been sold in Punjab and remaining quantity in Dhanbad as buyers have been assured of the quality as they have booked the trade online, while the onions are located at Lasalgaon.

 

The average realisation by NCCF through e-NAM in inter-state transactions was higher at about Rs.2,200 a quintal, whereas through intra-State auction it was about Rs.1,975. On the other hand, Nafed’s average realisation (all intra-state auctions) was about Rs.2,155, sources said.intra-state

 

'It all depends on prevailing market rate at a particular mandi on the date of auction where the buyer is located. Since, these agencies are conduction auctions at those select places where arrivals are lower or prices are higher, the selling rates also vary accordingly,' the official said.

In about six weeks, India has rattled the rice market.

The world’s top shipper has placed restrictions on all of its exports, panicking governments from Asia to West Africa. Other big growers have tried to reassure consumers that rice supply is ample, but it’s done little to calm the market.

Rice prices in Asia jumped back near the highest level in almost 15 years on Wednesday after India slapped more curbs on parboiled and basmati over the previous weekend.

 

They were the last remaining varieties free from export restrictions, bringing to a head a recent campaign of tightening that started with a July 20 ban on the shipment of some grains.

 

'Spikes in rice prices always hurt poor consumers the most,' said Peter Timmer, Professor Emeritus at Harvard University, who’s studied food security for decades. 'The most pressing concern right now is whether Thailand and Vietnam follow India and put significant controls on their rice exports. If that happens, we will see world rice prices zoom past $1,000.'

The anxiety over supply is understandable. Rice is vital to the diets of billions and contributes as much as 60% of the total calorie intake for people in parts of Southeast Asia and Africa. The benchmark price is currently at $646 a ton and weather could shake up the market even further.

 

The onset of El Niño this year threatens to parch many key growing regions across Asia, with Thailand already warning of drought conditions in early 2024. The crop in China, the world’s biggest producer and importer, appears to have escaped poor weather so far, but India’s major growing areas need more rain.

India’s measures boil down to politics. The government of Prime Minister Narendra Modi is facing an election early next year and high food prices can make voters very unforgiving at the polls. The curbs have had some impact.

The cost of rice in the capital New Delhi was still higher than a year ago as of Aug. 31, but since the export ban in July, prices have held steady at 39 rupees (47 cents) a kilogram. Across the nation, they’ve inched up slightly. However, India’s restrictions are reverberating across other countries.

The Philippines was forced last week to place a cap on rice prices across the country due to an 'alarming' increase in retail costs and reports of hoarding by traders. The nation is the world’s second-biggest importer of the grain.

Other worried nations are opting for the diplomatic route.

Guinea has sent its trade minister to India, while Singapore, Mauritius and Bhutan have requested that New Delhi exempt them from curbs on the grounds of food security — a provision the South Asian nation added when banning one variety. The restrictions have also provided an opportunity for Thailand.

The world’s second-biggest shipper has been on a roadshow in recent weeks, with its trade officials making trips to the Philippines, Indonesia, Malaysia and Japan. If you want rice, we have it, was the message.

Vietnam is offering some support to the market, saying last month that the nation is likely to exceed its export target for the year, a feat it could achieve without jeopardizing its own food security. Volumes to Indonesia have soared over the first seven months of this year, while shipments to China are also higher, customs data show. However, Myanmar’s ambitions wavered recently.

The nation’s rice federation suggested a temporary halt to shipments to cool rising domestic prices, a proposal that was knocked back by the government. The federation had only recently said it could ship more.

The Thai Rice Exporters Association is expected to update its white rice 5% broken price following its weekly meeting on Wednesday, and investors will be watching the Asian benchmark to see if calm, or concern, is trending.

The Department of Agricultural Research and Education (DARE), Ministry of Agriculture and Farmers Welfare is organizing the G20 Technical Workshop on 'Climate Resilient Agriculture' on 4-6 September 2023 in Hyderabad. The Workshop aims to bring together experts from around the world to discuss and highlight the challenges of Climate Change and would emphasize the cooperation and exchange of information to enhance the skills and competencies of countries in addressing challenges posed by climate change. The eminent speakers

 

The three-day event began today with the Inaugural Session which was graced by Minister of State for Agriculture and Farmers Welfare, Ms. Shobha Karandlaje. The first day was focused on the 'Climate Resilient Agriculture Research Needs and Innovations' wherein the eminent speakers shared their experiences in their respective countries to achieve resilience in agriculture. They shall also list out scientific and innovative solutions that are required to address these emerging challenges to reduce the uncertainty in the agriculture food systems. The event is attended by dignitaries including foreign delegates from G20 member states, Guest-invited countries, and International Organizations (IOs). Senior Officials from the Ministry of Agriculture and other Ministries also attended the meeting to deliberate in the technical sessions on the various issues of agriculture research predominantly on Climate Change and other techniques and methods for sustainable development of agriculture in the Global context.

 

Minister of State for Agriculture and Farmers Welfare, Ms. Shobha Karandlaje mentioned that agriculture is the most sensitive sector and is greatly influenced by climate change which is already happening in G 20 Nations. She said that the impacts of climate change are already being experienced by all of us and hope that the recommendations emanated from this workshop will give direction towards attaining climate-resilient agriculture.

 

Secretary DARE, and DG ICAR, Dr. Himanshu Pathak reiterated that agriculture in India is highly vulnerable to climate change and variability. He said that in recent years, the frequency of climatic extremes has increased resulting in increased risks to agricultural production and food security all over the World, including India and emphasized that the efforts of ICAR are very significant in meeting the challenges of climate change. Additional Secretary & FA, DARE, Ms. Alka Nangia Arora opined that Climatic risk is manifested in terms of the incidence of droughts, floods, and high intra-season variability in rainfall. Hence, risk - climatic and other forms of risk - remains a key challenge to researchers and policymakers.

 

DDG(NRM), ICAR, Dr. S.K, Chaudhari chairman of Technical Workshop for Climate-Resilient Agriculture, expressed that G20 Nations, mindful of G20’s leadership role, can position themselves as pioneers in developing climate-resilient practices for sustainable agriculture to enhance food security. Location-specific Climate Resilient Technologies (CRTs) are being demonstrated in India for coping with climate variability in vulnerable districts of India to generate awareness and to build the capacity of farmers and other stakeholders. Further ensured that the deliberations of this workshop would provide a road map for the research and development agenda to comprehensively address the climate change impacts on the agriculture sector. Director, ICAR-CRIDA, Dr. V.K. Singh profusely thanked the dignitaries and delegates for attending the Technical Workshop by travelling all the way from different nations.

 

The Theme of the G20 Indian Presidency is One Earth, One Family, and One Future, which celebrates the spirit of togetherness and harmony amongst us to ensure a bright future for the world. Upscaling Climate Resilient Agriculture Case studies and Experiences, Policy, Finance, and Institutional Needs for Climate Resilient Agriculture will be discussed in the upcoming technical sessions of the three-day event. As a part of the program, on 5th September 2023, the delegates would be taken on an excursion visit to ICAR-Indian Institute of Millets Research (IIMR) Hyderabad to showcase the scientific advances made in the field of research on Millets as part of the International Year of Millets 2023. India is looking forward to strengthening its Scientific Research and Development initiatives in the field of Millet and cooperating with other countries to help them develop these crops in their countries.

 

Later the delegates would be taken on a short trip to Shilparamam, Hyderabad on 5th September 2023 to witness the live dance performances of Indian folk artists depicting the traditional dance forms of music. The delegates would also explore the traditional products of India and the opportunity to buy them at the Shilparamam Complex, Hyderabad. The delegates on 6th September 2023 would be taken on an excursion visit to ICAR- CRIDA Hayathnagar Research Farm where they would be taken to field farms and given an overview of the crops and their management. The Department in close coordination with the support of district administration has made elaborate arrangements for the safety and security of the delegates. The delegates would leave for their respective countries on 6th 7th September 2023.

 

In a bid to make organic products comply with the stipulated standards, Food Safety & Standards Authority of India (FSSAI) has directed its notified laboratories 'to take the necessary steps to enhance the infrastructure and scope of the testing for organic products.'

 

The FSSAI has asked the notified labs to make an application to the Agricultural & Processed Food Products Export Development Authority (APEDA) for authorization, official sources told Bizz Buzz.

 

The food safety authority has directed the labs to apply to the National Referral Laboratory of APEDA for the proficiency testing programme and competence assessment in order to qualify for pre-export testing of organic products.

 

The labs have been also instructed to apply for organic products to compulsorily include this specific category within the FSSAI-NABL integrated scope. The NABL or National Accreditation Board for Testing and Calibration Laboratories is an accreditation body. It is one of the constituent boards of the Quality Council of India, an autonomous body under the Department for Promotion of Industry & Internal Trade (DPIIT), Ministry of Commerce and Industry.

 

The FSSAI had notified Food Safety and Standards (Organic Foods) Regulations in 2017 with the aim to benefit farmers by way of increasing their income. These regulations recognize two systems of certification: the Participatory Guarantee System implemented by the Ministry of Agriculture and the Farmers Welfare & National Programme for Organic Production implemented by the Ministry of Commerce & Industry. The regulations ensure integrity of organic food products and help in controlling unscrupulous practices in the market. All organic food products should be certified. Organic food that is marketed through direct sales to the end customer by a small original producer or a producer organization is exempted from certification. As per the FSSAI, a small original producer or a producer organization is one whose annual turnover is up to Rs12 lakh.