India has imposed curbs on the export of basmati rice, a day after a 20 per cent duty was levied on parboiled rice.

 

Basmati rice exports contracted at a price lower than $1200 a ton has now been temporarily halted, the ministry said.

 

The move is meant to check non-basmati exports which are prohibited but being exported in the garb of Basmati, the Ministry of Commerce and Industry said in a notification on Sunday.

 

'Contracts of Basmati rice below $1200 a ton may be kept in abeyance and may be evaluated by a committee to be set up by the Chairman of APEDA,' said the government notification. The Agricultural and Processed Food Products Export Development Authority (APEDA) is responsible for the regulation of Basmati rice exports.

 

The MEP would help authorities ensure that non-basmati rice is not exported as basmati rice, said the notification.

 

India ships out around 4 million metric tons of basmati rice to countries such as Iran, Iraq, Yemen, Saudi Arabia, the United Arab Emirates and the United States.

 

Before the temporary ban on basmati rice, the government imposed a 20 per cent duty on the export of parboiled rice, a move aimed at maintaining adequate local stock and keeping domestic prices under check.

 

Last month, the government banned exports of non-basmati white rice to boost domestic supply and keep retail prices under check during the upcoming festive season. In September last year, exports of broken rice were prohibited.

A free trade agreement is very close for a final call with the UK while negotiations for a trade pact with Canada are expected to conclude soon, Finance Minister Nirmala Sitharaman said on Friday. Speaking at the B20 Summit India 2023, organised by CII, the minister said India has already signed trade pacts with Australia, the UAE and several other countries.

 

'FTAs should actually encourage you (global investors) to be in India,' she told the gathering of global leaders.

 

'An FTA agreement is very close for a final call with the UK and I think negotiations with Canada are also progressing and I expect that to come to a conclusion sooner than later,' Sitharaman said.

 

She further said the finance ministry and commerce ministry are working closely on trade agreements with different countries.

 

'The fact that at this stage we are tying up the agreement with one of the Western developed countries shows that India is opening up for a lot more ... Mutually we should benefit from agreeing with each other,' she added.

 

Meanwhile in Jaipur, Commerce and Industry Minister Piyush Goyal said the negotiations between India and the UK for the proposed free trade agreement are progressing and both countries are committed to concluding the talks as early as possible.

India and the European Union have made good progress in the ongoing three negotiations- India-EU Free Trade Agreement; a standalone Investment Protection Agreement; and a Geographical Indications Agreement, the government said Saturday.

 

The commerce and industry ministry said in a statement that the two sides discussed their market access issues and review the progress made so far under the India-EU Trade and Technology Council.

 

Commerce and industry Piyush Goyal met the European Commission Trade Commissioner Valdis Dombrovskis for the third High Level Dialogue.

 

'Minister Goyal and I held a positive and thorough discussion on advancing our Free Trade Agreement during our High-Level Economic Dialogue today,' Dombrovskis said, adding that both sides would benefit enormously from a comprehensive trade and investment partnership.

 

He said: 'We need to see good progress in terms of investment protection - important to attract further European investment to India'.

 

The EU is India’s second largest trading partner but there is still a lot of untapped potential, Dombrovskis said, adding that there is a clear political willingness on both sides to change gear and make faster progress.

 

'We must now use this momentum to bridge major gaps that remain,' he said, adding that the two committed to important outcomes, including reform of the World Trade Organization (WTO).

 

The upcoming WTO ministerial conference matters were also briefly discussed during the meeting

 

Commerce and Industry Minister Piyush Goyal and US Trade Representative Katherine Tai on Saturday discussed ways to promote trade and investments between the two countries. In a message on social media network X (formerly known as Twitter), Goyal said he held a bilateral meeting with the US counterpart Tai.

 

'Discussed key bilateral issues of mutual interest and explored ways to give further impetus to the growing India-US partnership through enhanced trade and investments,' he said.

 

An official has recently said that both countries are looking at ending their last trade dispute related to poultry in the World Trade Organisation (WTO).

 

Besides they are also looking at enhancing the partnership by permitting companies in both countries to participate in each others' government procurement.

 

In July, India and the US mutually resolved six trade disputes pending at the WTO, in line with the commitment made by the two countries during the US visit of Prime Minister Narendra Modi in June.

 

During Modi's US visit in June, a joint statement said that the prime minister had expressed India's interest towards being recognized as a Trade Agreements Act-designated country by the US to further enhance the integration of both economies and promote bilateral trade and investment.

 

In this regard, the two sides have welcomed the initiation of discussions at an official level on issues related to bilateral government procurement.

 

The poultry case was filed by the US against India in the WTO in 2012. India has lost the dispute both at the panel as well as the appellate body levels. It was ruled against India that New Delhi's ban on imports of poultry products from the US was inconsistent with global norms.

 

As India was not able to implement the decision within the stipulated time frame, the US demanded compensation. After that, both countries are discussing ways to resolve the case mutually.

 

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.

 

Further, Goyal also held a bilateral meeting with UK Secretary of State for Business and Trade Kemi Badenoch on the proposed free trade agreement between the two countries.

 

'Discussed ways to add further momentum to the India-UK free trade agreement negotiations for a mutually beneficial deal,' he added.

 

Negotiations for the agreement, which aims to boost trade and investment, have reached the last stage..

 

Finance Minister Nirmala Sitharaman also met Badenoch and discussed bilateral investment and FTA.

 

Earlier in the day, Sitharaman met European Commission Executive Vice-President V Dombrovskis and discussed bilateral economic and financial issues of mutual interests.

India and Greece on Friday agreed to upgrade bilateral ties to a strategic level and double the two-way trade by 2030. Prime Minister Narendra Modi paid an official visit to the Hellenic Republic at the invitation of Prime Minister of Greece Kyriakos Mitsotakis.

 

Both leaders held high-level talks in a warm and friendly atmosphere and they noted the ongoing cooperation between the two sides and exchanged views on bilateral, regional and international issues of mutual interest, said an India-Greece joint statement.

 

Building on the foundation of the long-standing warm and close relationship between their countries and peoples, the two leaders decided to upgrade Greek-Indian bilateral ties to the level of a 'Strategic Partnership' and agreed to work to further expand bilateral cooperation in political, security and economic spheres, it added.

 

'The two Prime Ministers also decided to take steps to further strengthen people-to-people ties between the two countries. Appreciating the increase in bilateral trade and economic engagement in recent years, the leaders also directed that both sides shall work to double bilateral trade by 2030,' the statement said.

 

The bilateral merchandise trade stood at about USD 2 billion in 2022-23, according to Indian government data.

 

Prime Minister Mitsotakis and Prime Minister Modi reiterated the need for further broadening and deepening bilateral engagements, in the field of defence, shipping, science and technology, cyber space, education, culture, tourism and agriculture.

 

'They took note of the signing of the MOU on cooperation in the field of agriculture, including the establishment of a Hellenic-Indian Joint Sub-committee on Agriculture for facilitating sectoral cooperation for mutual benefit,' the joint statement said.

 

Both leaders directed their senior officials to ensure regular dialogue in the areas including political, economic, defence, security and public diplomacy, it said, and the two leaders also agreed to encourage direct flights between Greece and India.

 

Prime Minister Modi welcomed Greece into the International Solar Alliance (ISA) and looked forward to Greece's membership of the Coalition for Disaster Resilient Infrastructure (CDRI).

Just days after assuring that there are no plans to restrict export of non-Basmati parboiled rice, the Centre late on Friday imposed 20 per cent export duty on par-boiled rice with immediate effect. The decision was taken to curb the rising prices of rice, and it comes at a time when food inflation for July had skyrocketed to 11 per cent, pushing the retail inflation for the month to 7.44 per cent. The decision to impose a 20 per cent export duty on parboiled rice will make purchasing the commodity expensive for foreign buyers, thus limiting its overseas sales and at the same time boosting its domestic availability.

 

The trial exercise of directly exporting fresh fruits and vegetables from Assam to Singapore under the supervision of the island country's Ministry of Trade and Industry was successful, officials said on Saturday.

The cargo included coffee plum, star fruit, jackfruit, Assam lemon, and pineapple, the exporter Achintya Kumar Das, the Founder of KADlien Innovations and Export Centre, told PTI.

 

The 24-kilogram cargo was carried by Druk Air on August 23.

The project is a collaborative effort of Singapore's Ministry of Trade and Industry and India's Ministry of Commerce and Industry, with support from the Federation of Indian Export Organisation (FIEO), APEDA, and KADlien, he said.

 

'Singaporean authorities have expressed satisfaction after visiting and witnessing the fruits at the importer's site,' Das stated.

Singapore High Commissioner to India Simon Wong also took to X (formerly Twitter) to congratulate the team behind the project.

 

'I am happy to announce the first air cargo shipment of fruits from Assam to Singapore. This will establish a direct agro-export source from the NE to Singapore. We thank CM Himanta Biswa Sarma for this pioneer initiative,' he said.

FIEO Assam head Kaushik Dutta said,' This will no doubt open up new markets for the exotic fruits and vegetables from Assam and North East at large. Also congratulations to @Drukair for starting the direct flight from Guwahati to Singapore.

Addressing the FICCI Millet Conclave ‘Shree Anna’, Shubha Thakur, Joint Secretary (Crops, Oil Seeds), Union Ministry of Agriculture and Farmers’ Welfare, expressed her delight at the engagement of younger individuals and the vibrant startup movement promoting millets. Reflecting on the past one and a half years, she noted the significant growth of startups in the millet sector, which has captured the attention of the highest levels of government. She emphasised the importance of making the millet movement a mass movement in India and globally. 'From climate-smart to income-smart; it is time to bring Amrit Kaal for Shree Anna (millets) and Indian farmers,' she added.

 

Speaking at the conclave, Dr Sudhanshu, Secretary at APEDA, highlighted the emergence of more than 80 startups in the millet sector within the past year and a half, responsible for developing well-packaged products, and acknowledged the innovation from large retail organisations.

 

He emphasised the need for continuous efforts to provide guidance and support to small entrepreneurs and startups in the millet area, recognising the need for handholding rather than focusing solely on large export houses. In addition, he stressed sustaining the momentum after the launch of the campaign and expressing the commitment to take it to the next level.

 

Speaking on occasion, TR Kesavan, Chairman of the FICCI National Agriculture Committee & Group President, TAFE, passionately advocated for integrating millets into the regular diet, emphasising its multifaceted benefits, including nutritional value, climatic resilience, and income generation for farmers. He highlighted the challenges in cultivation, the need for mechanisation, and the importance of making millets profitable.

 

Celebrity Chef Ranveer Brar, in his special address, passionately endorsed the ‘International Year of the Millets – 2023’ campaign, urging a return to the traditional use of millets in Indian cuisine. Reflecting on the nation’s culinary history, he emphasised that millets were once extensively used across all cultures, states, and cuisines in India before being overshadowed by rice and wheat. He dismissed the notion that cooking with millets is difficult. 'I’ve always, as a chef, said that as a country, we’ve all grown up eating millet, and then somewhere down the line, we moved on to rice and wheat. I think we need to unlearn,' Chef Brar said, encouraging a return to culinary roots to understand how millets were originally used. The chef also highlighted the environmental responsibility associated with millets, describing it as a low environmental impact grain, especially concerning water consumption.

 

In his address, Padma Shri Dr Khader Vali, known as the Millet Man of India, passionately advocated for millets to eliminate various diseases. He emphasised that millets go beyond nutrition, offering a unique solution to global health challenges. Dr Vali highlighted the sustainable cultivation of millets, which requires minimal water, and lamented the disappearance of many traditional varieties. His insights served as a call to action, urging a reconnection with millets, recognising their unparalleled health benefits, and promoting sustainable cultivation.

 

Ravinder Balain, President South Asia at Corteva Agriscience, highlighted the United Nations’ declaration of 2023 as the International Year of Millets on India’s proposal and the Indian government’s subsequent initiatives to raise awareness about millets. Corteva is built on a belief in partnering with farmers and has been working to support resilience by advancing economic, environmental and social sustainability through proven science. He said that in Corteva, they firmly believe that 'When Farmers succeed, everyone wins.'

 

On the occasion, FICCI PwC Knowledge Report: Propelling India’s millet sector towards a sustainable future, was released. Speaking on the report, Shashi Kant Singh, Partner at PwC India, outlined the policy implications for the next 10 to 15 years, production aspects, awareness creation, innovation, and market development for millets. He emphasised the need to create both domestic and international demand for millets. He acknowledged the significant work done by the government in promoting millets. Singh also suggested that this can well be a jewel in India’s soft power diplomacy, reflecting the growing importance of the ‘Shree Anna’ in the global context.

 

The programme also saw the felicitation of winners of the 2nd Edition of Millet Startups Awards and Millet Idea Competition of Higher Education Students on 'Creating India’s Millet Revolution: Game-Changing Idea'.

 

Speakers congratulated the FICCI Task Force in Millets under Jitendra Joshi from Corteva and members from different segments of value chain on the completion of one year. A bajra cake was also cut to celebrate the occasion.

 

Key highlights of the FICCI-PwC Report: Propelling India’s millet sector towards a sustainable future

As part of the International Year of Millets (IYOM) 2023 celebrating these environment-friendly and highly nutritious crops, this knowledge paper also highlights the role of millets in ushering in economic prosperity along with proposed ways to achieve these goals. The report comprises three sections: knowing our nutri cereals, current perceptions about millets and mainstreaming millets.

 

To mainstream millets and bring the 'Shree Anna' to every plate, the report proposes a four-pronged strategy, in addition to celebrating a ‘Decade of Millets’:

 

Production enhancement interventions entail crop and varietal improvements, concerted efforts on value-added product development, innovations in production and processing technologies, and holistic policy support for millet promotion.

 

The awareness creation facet in the proposed strategy highlights the importance of mainstreaming millets and prioritising the interests of cultivators, consumers, and investors alike.

 

Innovations for increasing the area under millet cultivation along with dedicated product development endeavours would be helpful in increasing consumption.

 

Demand generation through public-private partnership models and global initiatives would be helpful in the long run to sustain the fervour.

To check the domestic prices and to ensure domestic food security, the Government has been taking measures to restrict export of rice from India. The export of non-basmati white rice was prohibited on 20th July 2023.

 

It has been noticed that despite restriction on certain varieties, rice exports have been high during the current year. Up to 17th August 2023, total exports of rice (other than broken rice, export of which is prohibited) were 7.33 MMT compared to 6.37 MMT during the corresponding period of previous year, registering an increase of 15.06%. There has been a spurt in the export of parboiled rice and Basmati rice; both of these varieties did not have any restriction on exports. While the export of parboiled rice has grown by 21.18% (3.29 MMT during the current year compared to 2.72 MMT during previous year), export of Basmati rice has increased by 9.35% (1.86 MMT during the current year compared to 1.70 MMT during previous year). Export of non-basmati white rice, which had an export duty of 20% since 9th September 2022 and has been prohibited w.e.f. 20th July 2023, has also registered an increase of 4.36% (1.97 MMT compared to 1.89 MMT during previous year). On the other hand, as per third Advanced Estimate of Department of Agriculture & Farmers Welfare, during the Rabi Season 2022-23, the production was only 158.95 LMT against 184.71 LMT during Rabi Season of 2021-22 i.e., there was a decline of 13.84%.

 

Internationally, due to strong demand from Asian buyers, production disruptions registered in 2022/23 in some major producing countries like Thailand, and fears of possible adverse effect of the onset of El Nino, international rice prices have also been rising continuously since last year. The FAO Rice Price Index reached 129.7 points in July 2023; its highest value since September 2011, registering an increase of 19.7% over past year levels. As the prices of Indian rice are still cheaper than the international prices, there has been a strong demand for Indian rice, resulting in record exports during 2021-22 and 2022-23. 

 

The Government has received credible field reports regarding misclassification and illegal export of non-basmati white rice, export of which has been prohibited with effect from 20th July 2023. It has been reported that non-basmati white rice is being exported under the HS codes of parboiled rice and Basmati rice.

 

As the Agricultural & Processed Food Products Export Development Authority (APEDA) is responsible for regulation of export of Basmati rice and already has a web-based system in place for the purpose, the Government has issued following instructions to APEDA to introduce additional safeguards to prevent the possible illegal exports of white non-basmati rice in the garb of Basmati rice:

 

Contracts for Basmati exports with the value of USD 1200 per MT only and above should be registered for issue of Registration – cum – Allocation Certificate (RCAC).

Contracts with the value of below USD 1200 per MT may be kept in abeyance and may be evaluated by a committee to be set up by the Chairman, APEDA, for understanding the variation in prices and use of this route for export of non-Basmati white rice. It has been noted that there has been large variation in the contract price of Basmati being exported with lowest contract price being USD 359 Per MT in backdrop of average export price of USD 1214 per MT during the current month. The Committee should submit its report within a period of one month, whereafter a decision on lower price exports of Basmati planned by industry can be taken appropriately.

APEDA should hold consultations with trade to sensitize them about the matter and work with them to discourage any use of this window for export of non-basmati white rice.

The DGFT issued Public Notice No. 29/2023 dated August 25, 2023 regarding the quantity of 5841 MT Sugar to be exported to the EU from India under TRQ for the year 2023-24 (October 2023 to September 2024) has been notified.

 

In exercise of the powers conferred under Paragraphs 2.04 of the Foreign Trade Policy, 2023, the Director General of Foreign Trade hereby allocates quantity of 5841 MT for export of Sugar to EU from India under TRQ for the year 2023-24 (October 2023 to September 2024).

 

As per Notification No. 3/2015-20 dated April 20, 2015, export of sugar (HS Code 17010000) to EU under TRQ is ‘Free’ subject to the conditions notified in the ‘Nature of Restrictions’ in the above notification.

 

Certificate of Origin, if required, for preferential export of sugar to EU, shall be issued by Additional Director General of Foreign Trade, Mumbai on recommendation of APEDA regarding entity and quantity for which eligible. Other certification requirement, if any, prescribed specifically for export of sugar to EU would continue to be followed.

 

The quota will be operated by Agriculture and Processed Food Products Export Development Authority (APEDA), New Delhi as the implementing agency for export of TRQ items to EU.

 

The reporting requirement as notified vide Notification No. 3/2015-2020 dated April 20, 2015 read with Notification No. 20 dated September 07, 2015 would be followed.

 

Effect of this Public Notice: The quantity of 5841 MT Sugar to be exported to EU from India under TRQ for the year 2023-24 (October 2023 to September 2024) has been notified.