Thailand is benefiting from India's rice export ban and has no reason to halt shipments of the grain itself, its commerce minister said on Monday.

 

The government would ensure sufficient rice output for both domestic consumption and exports, and also make sure domestic prices are not too high, minister Jurin Laksanawisit told a press briefing.

 

In the first seven months, Thailand shipped 4.8 million metric tons, he said, adding monthly exports stood at 700,000 to 800,000 metric tons.

 

Thailand, the world's second-largest rice exporter after India, is expected to export more than 8 million metric tons of rice this year, said Charoen Laothamatas, president of Thai Rice Exporters Association, up from 7.71 million last year.

 

Two trade sources said last week that some rice exporters in Thailand and Vietnam were re-negotiating prices on sales contracts for around half a million metric tons for August shipment, after India shocked global markets with a ban on exports of non-basmati white rice.

The government on Friday said sugar production in the next season starting October 1 is unlikely to drop from the current season’s level. The availability in the domestic market will be higher due to the continuation of the ban on exports, which will keep prices under check during the festival season.

 

However, to address the expected higher availability of sugarcane next year which may increase diversion towards ethanol, an inter-ministerial group will likely to recommend revised ethanol prices for next season in a month.

 

The assertion from the Government comes two days after Ithe Indian Sugar Mills Association (ISMA), an association of private mills, released its preliminary estimates of production for the 2023-24 season stating the output (after diversion towards ethanol) may drop to 31.68 million tonnes (mt) from the estimated 32.8 mt in the ongoing season to September.

 

'We expect sugar production (after diversion towards ethanol) to be around 32.5 mt, which is almost at par with ongoing season ending September 30,' a senior Food Ministry official said. He said since export may not be allowed until at least March 31, 2024, against 6.2 mt permitted during the current season, the domestic availability is expected to be higher.

 

'In fact, we assume 5-5.5 mt may be diverted towards ethanol against about 4 mt this season,' the official said. ISMA has estimated 4.5 mt of sugar is likely to be diverted for ethanol production next season against 4.1 mt in the current season. Actually, sugar is not diverted to produce ethanol, which is made out of molasses or sugarcane juice/syrup or grains. The estimate is based on how much quantity of sugar could have been produced from the same quantity of sugarcane that gets diverted towards ethanol.

 

‘Prices will remain stable’

Speaking to the media, Food Secretary Sanjeev Chopra said: 'This, we thought is creating some sort of panic that there is a shortage of sugar in the country. We thought we must clarify. It is highly premature to assess what will be sugar production in the next harvest beginning October.'

 

He highlighted that the sugarcane acreage has actually gone up to 56 lakh hectares (lh) this year from 53 lh a year ago. But, he acknowledged that there have been some concerns about patchy rainfall initially.

 

Chopra said prices of sugar and other essential commodities such as edible oils and wheat will remain stable during the upcoming festival season. He said the country has 108 lakh tonnes (lt) of sugar now, while 46-48 lt would be required to meet the demand during August and September and the crushing season will start in October. The annual sugar consumption is estimated at 275 lt.

 

On edible oil, he said prices will be stable as the industry has imported a huge volume in the last three months when prices were relatively lower. As high as 17.5 lt of crude edible oil was imported in July, he said.

 

Protecting the interest of domestic players, India has kept demands of Britain on data related issues and giving any kind of duty concessions on dairy sector out of the ambit of the proposed free trade agreement being negotiated between the two countries, sources said. However, India is looking at providing duty concessions on auto, and certain confectionery items, they said.

 

The negotiation for the agreement has reached a critical stage and in all likelihood it could be concluded by October end or November.

 

The talks received a great impetus due to the recent visit of Commerce and Industry Minister Piyush Goyal and Commerce Secretary Sunil Barthwal to London in July, where both held a series of meetings with different stakeholders including senior British officials.

 

The negotiation would get a further fillip during the meetings of trade ministers of India and the UK at the sidelines of G20 trade ministers meeting this month in Jaipur.

 

'The visit of the Indian minister and secretary was very positive for the negotiations. Most of the issues are sorted out between the two countries,' one of the sources said.

 

To provide duty concessions in the automobile sector, several rounds of consultations have been held with the domestic players.

 

In the dairy sector, India would not touch any product because of the sensitivities of the domestic players, they added.

 

As both India and UK are strong players in the services sectors, the two sides are negotiating hard for easing of norms in a number of sectors such as IT, healthcare, accounting, education, medical practices, banking, insurance, legal, and telecommunications.

 

The UK has shown keen interest in areas like banking, insurance, legal, and telecommunications.

 

The UK firms have raised concerns over data localisations norms in India.

 

Another official said that India and the UK are very close to concluding negotiations for a proposed free trade agreement as both sides are working to iron out differences on issues including investment treaty, intellectual property rights (IPRs) and rules of origin.

 

Out of the total 26 chapters in the FTA, 19 have been closed. In the rules of origin chapters, both countries are talking about product specific rules, value addition, and certification.

 

The 'rules of origin' provision prescribes minimal processing that should happen in an FTA country so that the final manufactured product may be called originating goods in that country.

 

Under this provision, a country that has inked an FTA with India cannot dump goods from some third country in the Indian market by just putting a label on it. It has to undertake a prescribed value addition in that product to export to India. Rules of origin norms help contain dumping of goods.

 

Investment is being negotiated as a separate agreement (bilateral investment treaty) between India and the UK and it could be concluded simultaneously with the free trade agreement.

 

The bilateral trade between the countries increased to USD 20.36 billion in 2022-23 from USD 17.5 billion in 2021-22.

 

India's main exports to the UK are ready-made garments and textiles, gems and jewellery, engineering goods, petroleum and petrochemical products, transport equipment, spices, machinery and instruments, pharmaceuticals and marine products.

 

The main imports include precious and semi-precious stones, ores and metal scraps, engineering goods, professional instruments other than electronics, chemicals and machinery.

 

In the services sector, the UK is the largest market in Europe for Indian IT services. In the field of investment, the UK is one of the top investors in India.

 

In 2022-23, India received USD 1.74 billion in foreign direct investment from the UK as against USD 1 billion in 2021-22.

 

During April 2000 and March 2023, investments stood at USD 33.9 billion.

 

Under such pacts, two trading partners significantly reduce or eliminate customs duties on the maximum number of goods traded between them, besides easing norms to promote trade in services and investments.

High-level meetings between India and the European Union (EU) will be held this month to take stock of the progress of talks on the proposed free trade agreement, according to an official. 'The EU officials are coming for the G20 trade ministers meeting this month in Jaipur. There is a high-level meeting at the minister level on August 26 in the national capital between India and the EU.

 

'Commerce Secretary Sunil Barthwal is also likely to meet EU Director General for Trade Sabine Weyand in Jaipur,' the official added.

 

These meetings would give an impetus to the ongoing negotiations between the two sides on the free trade agreement (FTA).

 

The G20 Trade and Investment Ministerial Meeting, under India's G20 Presidency, is scheduled at Jaipur on August 24-25.

 

So far, five rounds of talks have been held on the agreement.

 

India and the 27-nation bloc resumed negotiations on June 17 last year after a gap of over eight years on the proposed agreements on trade, investments and Geographical Indications (GI).

 

India had started negotiations for a trade pact with the EU in 2007, but the talks stalled in 2013 as both sides failed to reach an agreement on key issues, including customs duties on automobiles and spirits and the movement of professionals.

 

India's merchandise exports to EU member countries have increased to USD 74.5 billion in 2022-23 from USD about USD 65 billion in 2021-22. Imports also rose to USD 60 billion in 2022-23 from USD 51.4 billion in 2021-22.

 

The EU accounts for about 17 per cent of India's total exports and about 8.5 per cent of the country's total imports.

 

A GI is primarily an agricultural, natural or manufactured product (handicrafts and industrial goods) originating from a definite geographical territory. Typically, such a name conveys an assurance of quality and distinctiveness, which is essentially attributable to the place of its origin.

 

Besides greater market access for its products like textiles, leather, gems and jewellery, the Indian industry is looking for easy access for skilled professionals in the EU markets. On the other hand, the EU side has an interest in areas like auto, digital trade, data protection, sustainability and financial services sectors like banking and insurance.

 

Earlier, India asked the European Union to lift restrictions on the flow of sophisticated outsourcing business to India following the status of a data-secure country.

Union Minister for Commerce and Industry, Consumer Affairs, Food & Public Distribution and Textiles, Shri Piyush Goyal emphasized upon the need for enhanced collaboration and trust-building between India and the Latin American & Caribbean (LAC) region. While addressing the Special Ministerial Session at the ‘9th CII India-LAC Conclave’ held yesterday in New Delhi, the Minister said that India and LAC region share cultural ties and have emerged out of the shadows of colonial past.

 

Shri Goyal said that India is keen for faster economic growth through enhanced trade and investment, integration of businesses through collaborations and Free Trade Agreements (FTA). He presented a comprehensive four-point agenda aimed at fostering deeper cooperation between India and LAC region: (i) Boosting Trade Flows, (ii) Leveraging Bilateral Partnership, (iii) Healthcare and Pharmaceuticals Cooperation and (iv) Addressing Global Issues.

 

For boosting trade flows, Shri Goyal advocated for the formulation of a well-structured roadmap that capitalizes on the comparative and competitive strengths of each country. He said that this strategic approach would facilitate the augmentation of trade flows between India and the LAC nations. He said that India and the LAC region must work towards larger Global South cooperation in various multilateral forums.

 

To leverage bilateral partnership, the Minister highlighted the potential for bilateral collaboration to stimulate greater investment inflows. He emphasized upon the importance of integrating supply chains, particularly in sectors such as tourism, hospitality, and healthcare. Shri Goyal said that by pooling resources, India and the LAC region can develop cost-effective solutions with global implications.

 

For healthcare and pharmaceuticals cooperation, the Minister underlined the significance of mutual recognition agreements in the pharmaceutical sector, coupled with the adoption of smarter regulatory practices. Shri Goyal said that this approach aims to prevent reliance on high-cost medicines and paves the way for collaborative solutions to complex challenges.

 

To address global issues, the Minister conveyed his belief that collective efforts between India and the LAC region could lead to innovative solutions for even the most intricate global problems. Shri Goyal said that contemporary global challenges call for all of us to work together by forging partnerships, integrating supply chains and utilising our mineral resources, technology, skills, labour force, etc. in a collaborative manner. The Minister said that this would help address challenges of poverty, climate change, inequality, etc.

 

Shri Piyush Goyal highlighted India's aspiration to achieve a USD 35 trillion economy by 2047 under the leadership of the Prime Minister, Shri Narendra Modi. He expressed his confidence that this ambitious goal would open up numerous avenues for robust India-LAC partnerships, which could serve as a catalyst for positive global impact. The Minister invited the LAC nations to join the development journey of India to work together as trusted partners and expand shared interests.

 

Shri Goyal said that India and the LAC region must work together towards making the world a better place for the future generations. The Minister said that efforts must be made to build an atmosphere of trust and work towards exponential growth of trade between India and the LAC region. He highlighted that infrastructural development, digital connectivity, strong macroeconomic fundamentals, etc. along with demographic dividend presents India as a leading partner for economic growth.

 

The session featured insights from various dignitaries from the LAC region: H.E. Johann Álvarez, Vice Minister of Foreign Trade and Investment Promotion, Ministry of Popular Power of Economy and Finance and Foreign Trade, Venezuela; H.E. Mr. Alexandre Corona Quintero, Governor of the People’s Power of the Cienfuegos Province, Republic of Cuba; H.E. Mr. Samuel Alejandro García Sepúlveda, Governor of Nuevo Leon State, Government of Mexico; H.E. Mr. Rodolfo Pastor de Maria y Campos, Secretary of State in the office of the Presidency, Republic of Honduras; H.E. Mr. Henry Charles Fernandez, Minister of Tourism, Civil Aviation, Transportation and Investment, the Government of Antigua & Barbuda; H.E. Mr. Sergio Armando Cusicanqui Loayza, Minister of Development Planning, Plurinational State of Bolivia; and H.E. Mr. Andy Joseph Williams, Minister for Mobilisation, Implementation and Transformation, Government of Grenada.

 

Overall, the session underscored the shared vision of India and the LAC region to forge closer ties, capitalize on each other's strengths, and collectively contribute to global welfare and progress. The ‘9th CII India-LAC Conclave’ encompassed discussions across 12 distinct sectors, embodying the overarching theme of 'Furthering Economic Partnerships for Shared & Sustainable Growth.' This theme underscores the collective goal of nurturing strong and lasting economic ties for mutual prosperity.

 

Under the trade and investment outreach strategy of the Department of Commerce, the CII India-LAC Conclave is scaled up with the collaboration of Invest India, Export Promotion Councils such as EEPC, Pharmexcil, Chemexcil, ESC, ACMA and SIAM. On the sidelines of the Conclave, the Department of Commerce hosted bilateral meetings with the Latin American and Caribbean countries.

India and Bangladesh commencing cross-border trade settlement in Indian rupee (INR) would promote two-way commerce by reducing transaction cost, an industry official said on Sunday. CII national committee on EXIM Sanjay Budhia said that since all exports and imports and settlement of trade transactions under this arrangement may be denominated and invoiced in INR, this would also reduce dependence on the US Dollar and would address situations like scarcity of forex reserves apart from strengthening regional currency and trade.

 

In July, Bangladesh and India launched trade transactions in rupees with the aim of reducing dependence on the US dollar and strengthening regional currency and trade.

 

This is the first time Bangladesh has done bilateral trade with a foreign country in addition to the US dollar.

 

'This would certainly promote the growth of trade between the nations and support the increasing interest of the global trading community in INR,' Budhia said adding due to this arrangement, the transaction costs during trade between the countries will reduce which will boost the Indian exports to Bangladesh.

 

Bangladesh is currently facing scarcity of forex reserves and the provision of trade settlement in INR would greatly help address the situation resulting in increase in import demands from India, he said.

 

Trade settlement in INR alleviates exchange rate uncertainties for Indian enterprises by obviating the necessity of using USD in advance of conducting financial transactions and it would have similar effects on Bangladesh too, he added.

 

'This will go a long way in further enhancing the already significant economic relations between India and Bangladesh through economically efficient cross-border transactions,' Budhia said.

 

Further he suggested creation of a technology fund through which the Government could fund R&D and innovation projects, with the private sector contributing 60 per cent and 40 per cent coming from the fund.

 

'Industry could look at taking business delegations to Bangladesh to better explore the market. The large enterprises could also provide handholding services to smaller entrepreneurs in their journey towards export excellence,' he said.

 

The key sectors which would benefit from the development include cotton, spices, agri produce, leather, textiles, gems and jewellery, iron and steel and chemicals.

 

Bangladesh is India's biggest trade partner in South Asia and India is the second biggest trade partner of Bangladesh.

 

Banks in Bangladesh and India have been given permission to open nostro accounts, an account in a bank of another country for the purpose of foreign currency transactions.

 

According to the official data from Dhaka, exports from Bangladesh to India amount to USD 2 billion, while Bangladesh's imports from India are worth USD 13.69 billion.

The Wheat Products and Promotion Society (WPPS), a 33-year-old non profit organisation, has called for the modernisation of storage and handling of foodgrains, particularly wheat, and the setting up of a separate Indian board for the cereal.

 

In a conference that brought key stakeholders from the wheat sector to chart out a path towards sustainable growth and development, the WPPS said the Centre should initiate a nationwide programme to modernise storage and handling facilities to reduce post-harvest and storage losses of wheat.

 

Setting up a separate Wheat Board of India will ensure a dedicated commodity body that will have representation from all levels of the supply chain, as a think-tank and policy advisory entity.

 

The meet, which witnessed deliberation and analyses that led to the recommendations for the future of wheat-based industries, stressed on the need for climate-resilient varieties and milling technologies. 'Prioritise research and development of climate-resilient wheat varieties and innovative milling technologies to enhance productivity and efficiency,' it said.

 

Voice in food policy

The WPPS called for an integrated multi-sectoral focus with the establishment of an integrated multi-disciplinary organisation at both the Central and State Government levels to ensure compliance and food security for the growing population.

 

Other recommendations include incentivising sustainable processing technologies by offering incentives to encourage the transition from traditional to sustainable processing technologies at primary and secondary levels. 

 

It stressed the need for a WPPS representation in food policy organisations. Representatives from wheat processing industries to key food policy-making organisations should be invited in shaping impactful policies.

 

Ajay Goyal, WPPS Chairman, said, 'With the increasing demands for wheat and its vital role in nourishing our nation, we are happy to present these recommendations that pave the way for a thriving and sustainable wheat industry.'

Anticipating an increase in demand, in the context of ban on non-basmati rice shipments, a section of basmati rice exporters have started gearing up themselves by leasing additional warehouse spaces near major ports such as Kandla and Mundra.

 

While basmati is not an alternative to the non-basmati rice, the trade expects an incremental demand to kick-in for the aromatic rice, if the ban prolongs. India banned shipments of non-basmati rice on July 20 to cool down the rising prices of the cereals, while the move has triggered a panic in the overseas market.

 

'Lot of basmati players are getting active and we have seen a little inflow of additional cargoes at the port now. We are seeing demand for more storage from some clients, who are anticipating additional demand to come up in view of the ban and want to be prepared with their cargo at the ports to tap any opportunity that’s going to open up,' said Shivan Shah of LP Logiscience, the warehousing division of Liladhar Pasoo.

 

Shah said LP Logiscience handles about 5 lakh tonnes of basmati rice annually at ports such as Kandla and Mundra for exporters from North India and overseas buyers of the aromatic rice. Besides handling warehousing, LP Logiscience also offers services such as sorting, grading, and packaging for the basmati rice exporters and buyers at its facility in Gandhidham near Kandla.

 

Insignificant gain

Vinod Kaul, Executive Director at All India Rice Exporters Association, said there could be a little gain for basmati for some time, but may not be significant as basmati rice is a high-value item when compared with non-basmati rice. Basmati exports registered a 12 per cent growth during the April-June quarter over the same period last year and the growth is likely to be sustained, Kaul said.

 

Trade analyst S Chandrasekaran said, 'Other speciality rice exports from India is too small, that is 1.45 lakh tonnes. The sona masoori is a small and fine grain. Matta rice is a double boiled product with specific taste. Basmati will never fit to the quality consciousness of NRI South Indian consumers.'

Food Safety and Standards Authority of India (FSSAI), through States/UTs and its regional offices conducts regular surveillance, monitoring, inspection and random sampling of food products to check compliance of the standards laid down under Food Safety and Standards Act 2006, Rules and Regulations made thereunder.

 

In cases where the food samples are found to be non-conforming, penal action is initiated against the defaulting Food Business Operators as per provisions of FSS Act, Rules and Regulations made thereunder.

 

Based on information made available by the States/UTs, details of various kinds of food samples collected, analysed, found non-conforming and action taken in the last five years is given below.

 

FSSAI has developed a pan-India surveillance system that helps to collect the data regarding the safety and quality of food and to ensure that the food supplied in the market is safe and wholesome. The aim of such surveillance activities to identify hotspots of food safety non-compliances and adulteration.

 

FSSAI carried out surveillance activities pan-India of various commodities as under:

National Milk Survey 2016.

National Milk Quality Survey 2018.

Milk and Milk Products Survey 2020.

Edible Oils Survey 2020.

PAN India Food Survey 2021 - For Trans-fat & Acrylamide Content.

National Milk Survey 2022.

Jaggery Surveillance 2022.

 In the said surveys the possible adulterants in the commodity were tested and reported. In all the surveillance activities, efforts were made to ascertain the degree of adulteration to identify hotspots (regions) predominant in food adulteration, in addition to ensuring compliance with the quality & safety parameters.

 

Post pan-India Surveillance activities, the State wise non-compliance data are shared with concerned States/UT’s to initiate the regulatory sampling and taken penal action, wherever necessary.

 

FSSAI has taken many steps to improve consumer awareness with respect to food adulteration. The steps are as follows;

FSSAI through its YouTube channel has created a dedicated playlist How to check for adulteration containing 76 short videos for checking adulteration. These videos are being uploaded on Social Media (Twitter, Instagram, Facebook) on regular basis.

FSSAI has taken out a manual named DART (Detecting Adulterants with Rapid Testing). This manual is a compilation of some common adulterants and contaminants that can be tested by citizens themselves. It covers common adulterants in food products such as Oils & Fats, Sweetening Agents, Food Grains & their products, Pulses, Spices, Salt, Tea, Coffee, artificial and toxic colours, extraneous matters in food, added deliberately or otherwise. The scope and main aim of this manual is to create awareness in consumers about food adulteration detection methodology for use at household level too. This has been disseminated through social media and uploaded on the FSSAI website also for general information of the public.

Awareness through Exhibitions/Melas/Outreach activities at various events like AAHAR International Food & Hospitality Fair/ Indus Food / India International Trade Fair/ International Dairy Federation World Dairy Summit 2022/ Mega Expo & Science Book Fair 2022 etc. Stall have been placed in these exhibitions where awareness through live demonstration of detecting adulteration through Magic Box was put into display for general public.

Food Safety On Wheels (FSW): FSSAI has introduced mobile food testing vans called Food Safety on Wheels (FSW) to reach remote areas and conduct training and awareness activities as well. These mobile units are well equipped mobile food testing labs for conducting simple tests for common adulterants in milk, water, edible oil and other items of food of daily consumption. These FSWs are placed in different Exhibitions.

Food Safety Guidebook for Teachers/Students: The lesson plan booklet provides with the detailed information of how to conduct the different test on food adulteration. These tests are mapped across the curriculum of the particular grade. These lesson plans are effective way to enhance the students learning.