The government has set a target to procure 521.27 lakh tonnes of rice being cultivated during the ongoing kharif season. It has procured 496 lakh tonnes of rice from last year's kharif crop.

 

Paddy is grown in both the kharif (summer-sown) and rabi (winter-sown) seasons.

 

Food Secretary Sanjeev Chopra chaired a meeting of State Food Secretaries and Food Corporation of India (FCI) on August 21 to discuss the procurement arrangements for the Kharif crop in the ensuing Kharif Marketing Season (KMS) 2023-24, which runs from October-September.

 

'A quantity of 521.27 lakh tonnes rice has been estimated for procurement during the forthcoming KMS 2023-24 (Kharif crop) as against the previous year estimates of 518 lakh tonnes wherein 496 lakh tonnes was actually procured during KMS 2022-23 (Kharif crop),' the food ministry said in an official statement.

 

During KMS 2023-24 (Kharif crop), rice procurement in Punjab is estimated at 122 lakh tonnes, Chhattisgarh (61 lakh tonnes), Telangana (50 lakh tonnes), Odisha (44.28 lakh tonnes), Uttar Pradesh (44 lakh tonnes), Haryana (40 lakh tonnes), Madhya Pradesh (34 lakh tonnes), Bihar (30 lakh tonnes), Andhra Pradesh (25 lakh tonnes), West Bengal (24 lakh tonnes) and Tamil Nadu (15 lakh tonnes).

 

A quantity of 33.09 lakh tonnes of coarse grains/millets (Shree Anna) has been estimated for procurement by the states during the KMS 2023-24 as against actual procurement of 7.37 LMT during KMS 2022-23 (Kharif & Rabi).

 

Six minor millets have also been introduced to be purchased by the states at MSP of Ragi starting this KMS 2023-24, up to three years.

Prime Minister Narendra Modi met South Africa's President Cyril Ramaphosa on the sidelines of the 15th Brics Summit in Johannesburg on Wednesday and discussed ways to strengthen bilateral cooperation in defence, agriculture, trade and health, among other areas.

 

Both leaders reviewed the progress made in bilateral relations and expressed satisfaction at the progress achieved in various fields, including defence, agriculture, trade and investment, health, conservation and people-to-people ties, according to an external affairs ministry readout.

 

Both sides also exchanged views on continued coordination in multilateral bodies and regional and multilateral issues.

 

Ramaphosa expressed support for India's G20 presidency and appreciated New Delhi's initiative to give the African Union full membership of the G20. He conveyed that he looked forward to visiting New Delhi for the G20 Summit.

 

Modi congratulated Ramaphosa on the successful hosting of the Brics Summit and accepted Ramaphosa's invitation for a state visit to South Africa.

 

During the Brics Plenary session, Ramaphosa said he wanted to congratulate India for the Chandrayaan-3 mission. 'I would like to congratulate India, particularly as you speak about the need for cooperation in space, in a few hours India's spacecraft Chandrayaan-3 will be landing on the moon. We congratulate you. This for us, as the Brics family, is a momentous occasion and we rejoice with you. We join you in the joy of this great achievement...'

 

Ramaphosa said he was 'willing to donate more cheetahs to India'. 'Should you need more cheetahs, you have come to the home of cheetahs,' he told Modi. Earlier this year, 12 cheetahs were translocated from South Africa to India under an agreement signed between the two nations.

Nepal has started to face an acute shortage of onions, days after neighbouring India slapped a 40 per cent export tax on the vegetable, a media report said on Wednesday.

 

India last week imposed a 40 per cent tariff on the export of onions till December 31 to restrict overseas sales. The move comes amid anticipation of a price rise ahead of the festival season when demand for most commodities goes up, The Kathmandu Post newspaper reported.

 

The new tariff has severely affected Nepal as several traders in Kalimati Fruit and Vegetable Market -- the Himalayan nation's largest wholesale market for agricultural products-- reported a sudden scarcity of onions.

 

'There is a severe scarcity of onions in the Nepalese markets now. No onion shipments have been delivered since Sunday, and the remaining stocks were sold out by Monday,' Binay Shrestha, Information Officer for the country's largest produce bazaar, was quoted as saying in the report.

 

Shrestha said that onions cost Rs 54 per kg two weeks ago but now the retail price of onion has crossed Rs 100 per kg in Kathmandu Valley.

 

As Nepal imports almost all its onion requirements from India, the export duty has created shortages in the domestic market.

 

Traders said that the scarcity coincides with the start of Nepal’s festive season when onion consumption explodes.

 

The festival season is marked by endless feasting, and the spicy bulb is indispensable to local cooking.

 

'The price may rise further. We cannot say how much,' said Shrestha.

 

'There were no deliveries during the weekend, which is Saturday and Sunday in India. New shipments will arrive with 40 per cent tax added to the cost,' he said.

 

Mohan Baniya, president of the Potato-Onion Import-Export and Wholesaler Association, said that after the new Indian tax went into effect, the wholesale price of onion soared to Rs 78 per kg at the Kalimati market on Monday.

The 14th bilateral assembly of the Joint Group of Customs (JGC) involving India and Bangladesh took place in New Delhi on August 21st and 22nd, 2023. The co-chairpersons for the meeting were the Member in charge of Customs from the Central Board of Indirect Taxes and Customs in India, and the Member responsible for Customs: Audit, Modernization, and International Trade from the National Board of Revenue in Bangladesh.

 

This annual rendezvous between India and Bangladesh serves as a platform to delve into matters related to customs collaboration and the facilitation of cross-border trade. A pivotal outcome of these meetings is the bolstering of connectivity and the augmentation of trade infrastructure to ensure seamless customs clearance at terrestrial frontiers. Along the expanse of the India-Bangladesh Border, situated in the regions of West Bengal, Assam, Meghalaya, Tripura, and Mizoram, a network of 62 Land Customs Stations, encompassing land border crossing junctures, railway terminals, and riverbanks/ports, orchestrates the movement of goods and people.

 

Notably, India has recently undertaken various strides in facilitating trade, exemplified by measures such as permitting exports from Bangladesh to India via rail in enclosed containers. This initiative incorporates customs clearance capabilities at any Inland Container Depot (ICD), thereby contributing to the alleviation of congestion at border trade nodes. Additional circulars, dated September 9th, 2022, and September 14th, 2022, allow for cargo exports from Indian ICDs to Bangladesh through Inland Waterways and endorse transshipment of containerized export goods from Bangladesh, meant for third countries, through Indian routes. The circular of February 7th, 2023, extends the privilege of transshipping Bangladesh’s export cargo to third countries through Delhi Air Cargo.

 

Engaging in the discourse of the 14th JGC meeting were an array of bilateral matters, encompassing topics like inaugurating new land customs stations, ameliorating port restrictions, enhancing road and rail infrastructures, initiating the exchange of customs data prior to the arrival of shipments, and formalizing a mutual accord on customs cooperation. An expression of gratitude flowed from India to Bangladesh for their successful trial runs and subsequent notification to operationalize the Agreement on Use of Chattogram and Mongla Ports (ACMP), as decided during the 13th JGC meeting. Furthermore, discussions were ignited concerning the electronic interconnection of the respective transit modules of ACMP.

 

With shared commitment, the bilateral meeting culminated on a successful note, with both sides pledging to advance their collaboration in domains of mutual interest.

PM Narendra Modi backed the proposal for BRICS membership expansion by consensus and, in the presence of Chinese President Xi Jinping, expressed hope the member-states will support India’s proposal to make the African Union (AU) a permanent member of G20 at the summit next month in Delhi, and also its efforts to address Global South concerns.

Addressing the open BRICS plenary session, Modi made 5 suggestions to further intensify intra-BRICS cooperation including the creation of a BRICS space exploration consortium. He was speaking hours before India’s moon mission, Chandrayaan-3, successfully landed on the moon.

While seeking timelines for UNSC reforms, Modi also called for reform of multilateral financial institutions, WTO and urged BRICS to send a global message of unity and not polarisation

On BRICS expansion, the issue that dominated the summit agenda, government sources said India took the lead in forging consensus on membership criteria and selection of new members. India’s efforts are apparently guided by its objective to incorporate strategic partners like Egypt and Saudi Arabia as new members.

'India fully supports the expansion of the BRICS membership. And welcomes moving forward with consensus in this,' said the PM, adding that BRICS will be breaking barriers, revitalising economies, inspiring innovation, creating opportunities, and shaping the future.

South Africa said after the second day of the summit that the leaders agreed to a document which 'set out guidelines and principles, processes for considering countries that wish to become members of BRICS'.

 

With many developing countries looking at BRICS with renewed hope at a time of great global uncertainty, 23 countries have formally approached the grouping for membership. In his address, Chinese President Xi Jinping called for speeding up the expansion process saying more members will make global governance more just and equitable. India, however, wanted BRICS to first finalise the criteria and guiding principles for extending membership, something that the summit focused on. A formal announcement on expansion guidelines is expected on Thursday.

Modi also lauded South Africa’s focus on the Global South at the summit. 'We have also proposed to give permanent membership of G-20 to the African Union. I am sure all the BRICS partners are also together in the G20. And all will support our proposal. Giving special place to all these efforts in BRICS will increase the self-confidence of the countries of the Global South,' he said.

Apart from BRICS space consortium, Modi also proposed undertaking skill mapping, promoting mobility among BRICS countries and joint efforts for protection of Big Cats under International Big Cat Alliance. He also proposed establishing a repository of traditional medicine among BRICS countries.

The PM said public service delivery is being revolutionized through in India through Digital Public Infrastructure and offered the same to BRICS countries. 'Diversity is a great strength of India. The solution to any problem in India comes out at the test of this diversity. That's why these solutions can be easily implemented in any corner of the world,' said Modi.

India is seeking re-establishment of the dysfunctional dispute resolution mechanism under the World Trade Organisation (WTO) based on the principle of ‘common but differentiated responsibility’ along with a push towards consensus-based decision making as it sets the stage to discuss trade and investment issues during the two-day G20 Trade and Investment Ministerial Meeting beginning Thursday in Jaipur.

 

Union Commerce and Industry Minister Piyush Goyal Wednesday said India is confident that the ministerial meeting will yield a 'concrete actionable outcome' which will help the world withstand future shocks and invoked a 'Jaipur Call for Action' with support of G20 member countries to promote industry, MSMEs and expansion of trade.

 

Goyal said that there has been convergence on major issues in trade ministerial meetings among member G20 countries but acknowledged that there are some realities on which there is 'no possibility of a consensus' — referring to the Russia-Ukraine war.

 

'There is a good understanding between the member countries… but there are some realities (Russia-Ukraine conflict) on which there is no possibility of a consensus… agreeing on that is naturally not a possibility because it is a real situation… Barring this, we are trying to build a consensus on all the remaining priorities,' he said.

 

Goyal met WTO Director General Ngozi Okonjo-Iweala Wednesday and held bilateral meetings with trade ministers of Bangladesh, Brazil, France and the UAE. 'India wants the WTO to be modernised. Whatever changes are required as per today’s circumstances, India will play a crucial role in it. It is important that the dispute resolution mechanism, which has been dysfunctional from the last few years, is re-established. When WTO was established, the thinking was that growth rates were different for countries, there are different levels of development, the decisions should be based on that. Which is also referred to as common but differentiated responsibility (CBDR)…(there should be) consensus, decision should be as per agreement of everyone. This was an important issue when WTO was formed and India wants WTO to continue to stay like that,' he said.

 

Under the WTO, countries can appeal in the appellate body to adjudicate disputes. The appellate body at the WTO stopped functioning from December 2019, but the panels are still working. Several countries including the US have been pushing for reforms in the WTO.

 

Goyal said India supports the need for reforms in the WTO and the country’s engagement at the WTO ministerial will further the agenda as the voice of the less developed countries and the developing world. 'India has increasingly become the voice of the global south and our engagement with the WTO ministerial (in February 2024) will further our agenda as the voice of the less developed countries,' he said.

 

The discussions in the trade group meetings have focused on some of the world’s major challenges, complex issues to find concerted action-oriented solutions, he said. 'We have been able to come up with significant consensus amongst the member countries invoking a Jaipur call for action. The Jaipur call for action will help promote industry, MSME sector, upgrade the global trade help desk, and bridge information gaps for MSMEs to help them expand their business and trade,' Goyal said, adding that the members have deliberated on formulating high-level principles for digitalisation of trade and trade facilitation. There were five priorities before the Trade and Investment Working Group — trade for growth and prosperity, trade and resilient global value chains, integrating MSMEs in global trade, logistics for trade and WTO reforms, he added.

The government is trying to get Asean nations to eliminate duties on nearly 90% of the goods exported from the country as it seeks to balance trade volumes and bring the 13-year-old treaty in line with 'more modern agreements'.

 

Earlier this week, India and the 10-nation bloc agreed to New Delhi's long-pending demand for a review, which the government believes is crucial to ensure that two trading partners have strong ties. Since the agreement was signed, India's trade deficit with Asean has shot up from around $5 billion in 2010-11 to $43.6 billion in 2022-23, a rise of 8.7 times. During this period, trade has increased 2.3 times to $131.6 billion, reflecting the asymmetry between growth in imports and exports.

 

Under the agreement, each Asean member had agreed to a different level of tariff elimination and India wants them - especially the higher income countries - to commit to greater opening-up given that free trade agreements with Australia and the UAE have seen tariffs eliminated on over 90% goods. Besides, India wants product specific restrictions imposed by Asean members withdrawn, as is the case with certain types of steel. Besides, the government is insisting that countries rework rules of origin as the current regime is seen to be porous and allows Chinese goods to be routed via third countries. Violations in goods such as set-top boxes from Vietnam, tin ingots from Malaysia, cold rolled stainless steel flat products, and cocoa of Ghana origin from Malaysia, have been reported by authorities.

 

While the services sector is not explicitly on the agenda, the government is also going to seek greater opening-up as someAsean members have refused to honour their obligations after pocketing the benefits on the goods side.

India will supply 14,000 tonnes of non-basmati rice this year to Mauritius and 79,000 tonnes to Bhutan under humanitarian operations, making an exception for two key diplomatic partners.

 

The decision has been taken after India received requests from both the nations to exempt the export prohibition on non-basmati rice, two government officials aware of the matter said.

 

Mint on 20 August reported that after the UN World Food Programme, and three nations—Singapore, Indonesia and the Philippines—had appealed to New Delhi to resume rice exports to their nations following India’s decision to suspend non-basmati white rice shipments to check prices effective from 20 July.

 

Bhutan requested India to allow rice exports after India’s ban on shipments of non-basmati rice caused global rice prices to rise. Bhutan in late July made a diplomatic request for rice shipments of up to 90,000 tonnes.

 

Similarly, a request from the Mauritius to exempt it from the prohibition for a supply of up to 14,000 tonnes was also received earlier this month.

 

'Consignments of 60 containers carrying about 1,500 tonnes of non-basmati rice were due to sail on 19 August from Mundra port (in Gujarat). After the clearance, the containers will reach Mauritius in the first week of September before their rice stocks exhaust on 15 September. A total requirement of 14,000 tonnes of non-basmati rice is to be imported from India this year,' one of the government officials said.

 

Mauritius is a close and trusted foreign partner of India and annually imports around 24,000 tonnes of long grain white rice that is consumed by vulnerable groups.

 

During April-June of the ongoing financial year, India exported 784.14 tonnes of rice to Mauritius as against 843.46 tonnes during the corresponding period last year. In 2022-23 financial year, nearly 10,040 tonnes rice were exported to the nation by India.

 

Queries mailed to the embassies of Mauritius and the Bhutan in New Delhi, and India’s department of food and public distribution remained unanswered at press time.

 

India is the world’s biggest rice exporter, accounting for nearly 45% of the global rice trade. In April-June of the current financial year, the country exported 1.55 million tonnes of non-basmati white rice and 371,000 tonnes of broken rice compared with last year’s 1.15 mt and 141,000 tonnes, respectively.Neighbouring countries, including Bangladesh and Nepal, are heavily dependent on Indian rice, while some African countries are purchasers of broken rice.

 

India’s rice export ban, however, allows for government-to-government deals and for requests made by 'friendly countries' with genuine food-security needs

 

'To ensure adequate availability of non-basmati white rice in the Indian market and to allay the rise in prices in the domestic market, the government of India has amended the export policy from ‘free with export duty of 20%’ to ‘prohibited’,' the government announced in July.'But there is no change in the export policy of non-basmati rice (parboiled rice) and basmati rice, which form the bulk of rice exports. This will ensure that the farmers continue to get the benefit of remunerative prices in the international market,' read a press release by the ministry of consumer affairs, food and public distribution.

India has clarified its stance on parboiled rice exports, with Food Secretary Sanjeev Chopra stating that the country has no plans to impose any restrictions on the export of non-basmati parboiled rice.

 

This announcement comes after India had previously banned the export of non-basmati white rice last month, catching many buyers off guard.

 

Currently, there are no limitations on the export of parboiled rice, which accounts for approximately one-third of India's total rice exports. Despite earlier reports suggesting the possibility of an export tax on parboiled rice, the government's position remains unchanged.

 

India’s export ban on non-basmati white rice had led to global concerns, triggering a sense of urgency among stakeholders and intensifying apprehensions about food security.

 

The move set off a chain reaction, prompting a race to secure supplies and raising concerns about the potential consequences of this disruption.

 

The implications of this export ban, projected to curtail the availability of a vital staple food by approximately one-fifth in the global market, spurred a scramble among stakeholders to adapt to the changing landscape.

 

Importers, in particular, continue to face the prospect of constrained supplies and surging prices, leading to increased volatility in the market.

 

As the international community grapples with the fallout from India's decision, importers are increasingly exploring alternative strategies to manage the impact. One possible outcome is the rise in government-to-government agreements, as importers seek to counter the shortage and regulate price fluctuations.

 

Amidst these developments, concerns over food security have taken center stage. The ban's potential to disrupt the supply chain has raised alarms, particularly in regions heavily reliant on imports to meet their food needs.

The Government has started the process of offloading chana (Bengal gram) stocks procured during the 2023 rabi season in several states in a move aimed to keep the prices of the pulses variety under check.

 

Over the past couple of days, the National Agricultural Co-operative Marketing Federation of India Ltd (NAFED) has started inviting bids from interested buyers for disposal of chana procured under the price support scheme in Karnataka, Telangana, Andhra Pradesh and Rajasthan.

 

Chana prices have been heading north over the past couple of months, following the bullish trend in the pulses complex led by tur (pigeon pea) and urad (black matpe) as their production was impacted by excess rains last year, leading to short supplies and price rise. Also t sowing of tur and urad has been impacted in the ongoing kharif season due to delayed monsoon and deficit rainfall in Karnataka and Maharashtra, aiding the bullish price trend.

 

Chana prices have moved up by about a fifth since early July and in consuming market of Delhi closed at over Rs.6,000 per quintal on Wednesday.

 

Record output

According to the Agriculture Ministry’s third advance estimates, chana production during the rabi season in 2022-23 touched a record 135.43 lakh tonnes. NAFED has procured about 23.5 lakh tonnes during the 2022-23 rabi marketing season. Along with the carry-forward stock of around 14 lakh tonnes from the previous season, total stocks stood at 37.5 lakh tonnes before the start of disposal. NAFED has been selling the previous year’s stocks in the recent weeks and has began the process of selling the 2022-23 stocks now.

 

'The sale of rabi 2023 stocks is on expected lines and is likely to help contain the rising prices,' said Rahul Chauhan of IGrain India. 'We need to see what price NAFED gets for the 2023 tenders,' he said.

 

For the rabi 2022 stocks sold in the recent auctions, prices were in the range of Rs.5,519-5,699 in various States depending on the quality, Chauhan said.