Commerce and Industry Minister Piyush Goyal on Saturday said he is hopeful of India finalising certain free trade agreements (FTAs) in the next few months, which would help promote exports. India is in the final stages of concluding FTA negotiations with the UK. The country is also negotiating similar pacts with Canada and European Union (EU).

 

'We can leverage the free trade agreements with the UAE and Australia and we are hopeful that in the next few months, we will finalise many more free trade agreements to help you grow your business with zero duty on finished leather products and footwear available for you to exploit bigger and better markets,' Goyal said while addressing footwear industry representatives here.

 

The minister also asked the industry to focus on quality and sustainable manufacturing processes to tap business opportunities in the developed world.

 

The Indian footwear and leather industry is not only a major foreign exchange earner but being a labour-intensive sector, it also provides employment to approximately 4.5 million people, 40 per cent of whom are women.

 

He said that India has the capacity to become the world's largest and best-quality footwear manufacturer.

 

India is the second largest exporter of leather garments, third-largest exporter of saddlery and harnesses and fourth-largest exporter of leather goods in the world.

 

More than 95 per cent of the production units in this sector are micro, small & medium enterprises (MSME) units.

 

Further Goyal said that Indian size of footwear will be launched soon to help distinguish Indian footwear around the globe and reduce dependence on foreign sizing trends.

 

He suggested industrialists explore FTAs for technological collaborations, joint ventures of non-leather footwear, thus increasing the export of the country and enhancing the domestic market with Indian products.

 

Goyal highlighted the beauty of Kolhapuri footwear of Maharashtra and Mojari footwear of Rajasthan, stating that it should be an area of attraction for international buyers as well.

 

Talking about quality, he said the government has issued quality control norms for the sector and the government is ready to set up testing facilities for certifications.

 

Goyal urged the stakeholders to expand the business while keeping the focus on quality and sustainability, eco-friendly process, waste management, and exploring renewable sources for electricity.

 

Not only do we need to enhance our design capabilities to move up the value chain, but also bring in more investments and technology to scale up the production and produce innovative products, he added.

The government has invited applications from exporters to allocate quota for exports of wheat to Bhutan during 2023-24 on humanitarian and food security grounds.

 

In a trade notice, the DGFT (Directorate General of Foreign Trade) has laid out a detailed procedure for allocation of quota for export of wheat, ‘atta’ and ‘maida’ on humanitarian and food security grounds, based on requests received from Bhutan.

 

It said the government has approved export of 14,184 tonne of wheat grain; 5,326 tonne of wheat flour (atta); 15,226 tonne of maida to Bhutan in 2023-24.

 

'Accordingly, applications are invited from exporters for allocation of quota,' it said.

 

As per the procedure, the minimum threshold for these products will be 100 tonne by land transport to the neighbouring country.

 

'Application would be allowed only if the exporter applies for quantity more than the minimum threshold,' it said.

 

In a separate notification, DGFT said it has banned exports of de-oiled rice bran till November 30 this year.

 

India is a major exporter of de-oiled rice bran, used in the cattle feed industry.

 

'Export policy of de-oiled rice bran is amended from free to prohibited with immediate effect up to November 30, 2023,' DGFT, under the commerce ministry, said.Govt invites applications from exporters for allocation of wheat quota for Bhutan

 

With the 12th round of negotiation a few days away, India and the United Kingdom (UK) hope to build consensus on three key issues –- rules of origin (ROO), intellectual property rights (IPR), and investment treaty -– in the proposed free trade agreement (FTA) between both nations.

 

The negotiations are currently at a crucial stage, with the next round of negotiation expected in the second week of August.

 

In  the case of rules of origin chapter, the principles have been agreed upon. However, the modalities are still being worked out, a person aware of the matter said on Friday.

 

'In rules of origin, we are doing things at the international level for the first time. We are going for product specific rules… Every product will have a specific rule, whether it is value addition or change in tariff heading,' the person said.

 

In any FTA, rules of origin determine the criteria for which goods are eligible for free imports, with the larger idea to avoid routing of products manufactured in third countries to India.

 

There has also been a ‘broad consensus’ on the sticky issues in the goods chapter–automobiles and whiskey. Significant cuts in tariffs on whiskey and automobiles have been some of the key demands from the UK. The person, however, said that despite the broad consensus on these goods, 'nothing is agreed till everything is agreed'.

 

Of the 26 policy areas or chapters, 19 have been substantially closed for negotiations. Both sides are ‘very close’ to concluding the trade deal and both sides hope to sign much before the year ends. 'We are very close and are trying to conclude the talks as early as possible,' the person said.

 

The uptick in the momentum of negotiation comes in the backdrop of Commerce and Industry Minister Piyush Goyal and commerce secretary’s visit to London amid hectic negotiations earlier this month to discuss the progress of the proposed pact.

 

Both countries are also looking to sign an investment treaty as a separate agreement (Bilateral Investment Treaty) and conclude it simultaneously with the trade agreement. One of the contentious issues that the UK is uncomfortable with is the exhaustion of ‘local remedies’ clause under India’s model bilateral investment treaty (BIT) that India adopted seven years ago. Another issue that bothers foreign investors is the narrowed down the definition of ‘investment’ needed to qualify for BIT protection from an ‘asset’ based to an ‘enterprise’ based one.

 

Both the nations had kick-started formal negotiations in January 2022 and had set an ambitious Diwali/October-end deadline for the trade pact. The deadline was missed as both sides were not able to iron out the differences in providing greater market access for certain goods and services.

 

The UK is India’s 15th largest trade partner, with total trade at $20.36 billion in FY23.

 

Three more products, unique to Tamil Nadu, have obtained the Geographical Indication (GI) tag, further strengthening the state’s top rank in the list of GI products.

 

The GI registry is to confer GI recognition for Jaderi Tiruman (Namakatti) that adore the foreheads of top deities and Vaishnavites all over the world, the delicious Matti Banana of Kanyakumari district and the Chedibutta sarees of Tirunelveli district. These are the new entrants to the GI hall of fame which has nearly 420 products so far.

While Tamil Nadu’s tally has reached 58 now, Uttar Pradesh is in second position with 50-plus products, followed by Karnataka with 48, said IPR attorney P Sanjai Gandhi, adding that the tally is as of April. Some more products have been granted the GI tag during the April-July period as well, he told TOI.

Sanjai Gandhi alone has obtained GI recognition for 40 products for various cooperative societies and government departments. Ever since Tamil Nadu government appointed him attorney two years ago, he obtained 17 GI tags. At least 15 products from Tamil Nadu are awaiting the GI registry’s nod, he said.

The GI application for Jaderi Tiruman, filed on behalf of Jaderi Thiruman (Namakatti) Producers Society in Jaderi in Thiruvannamalai district, said one of the most visible external symbols of Hindu identity is the unique mark worn on the forehead. Worshippers of Lord Vishnu wear a tilak in the shape of 'U' (called Naamam), which is believed to protect the wearer from evil.

 

The finger-length white Jaderi Tiruman made of hyrous silicate minerals has immense cultural, religious and medicinal significance. About 120 families in the tiny village of Jaderi in Tiruvannamalai district have been making these Namakatti for about three centuries and supplying them all over India and abroad.

The natural ingredients available in Thenpoondipattu village are collected and made into Namakatti by artisans after a tedious and time-consuming process. The skills are traditionally and hereditarily transferred from their forefathers.

The selection of the appropriate kind of clay itself requires expertise. The rocks are then crushed by the traditional rollers drawn by Tow bulls (chekku maadu). The clay is then put through a filtering process and stored in tanks for 20 days until it turns white. After this, the clay paste is cut into finger-shaped Namakattis which are sun-dried for four days. The Namakattis are then exported to Vishnu temples across the world.

The production of Namakattis depends on the climatic condition as it needs a lot of sunlight to dry, said Sanjai Gandhi, adding that the white tilak cools the forehead, protects the wearer and prevents energy loss. It is used to adorn the foreheads of idols, men, and temple elephants as well as to cure stretched skin after childbirth.

The GI tag has been conferred on Kanyakumari Matti Banana based on an application by Kanyakumari Banana and Horticulture Farmers Producer Company Limited.

Matti banana (musa sapidisiaca) is a diploid cultivar commercially grown in Kanyakumari district of Tamil Nadu. Kanyakumari located in the high rainfall zone with annual rainfall about 1,469 mm. Matti banana is mostly grown in the Agatheeswaram, Thovalai, Thiruvattar taluks, and it is a traditional table banana cultivar having medicinal value, said Sanjai Gandhi.

The fragrant fruit is known for its sweet and sub-acid flavor, firm texture and powdery nature. The 15-month crop is considered a rare variety and is grown only in the hills of South Travancore (Undivided Tamil Nadu and Kerala) near Nagercoil. Its bunches weigh 12 to19 kg with 9 to 10 hands containing fairly long fingers.

Kanyakumari Matti banana has other variants like Semmatti (red Matti), Thaen Matti (Honey Matti) and Malai Matti (Hill Matti).

Though banana is not generally recommended to infants for upto six months, Matti variety is included in the diet of infants in Kanyakumari area due to low TSS value. Tribes of Western Ghats use the corm extract of Matti as cure for jaundice.

The applicant has traced the Matti reference in several literature and government records, and also said one medium-size banana would provide approximately 13% of our daily manganese needs. Manganese helps our body make collagen and protects our skin and other cells against free radical damage. Potassium in banana helps our body maintains a healthy heart and blood pressure. The low sodium and high potassium combination help to control high blood pressure. Bananas are also rich in vitamin C that protects our body against cell and tissue damage.

Application for the third GI tag-winner, Chedibutta Sarees, has been made by Veeravanallur Sowrashtra Weavers Cooperative Production and Sales Society Limited in Tirunelveli district.

The name Chedibutta is a combination of two Tamil words -- ‘Chedi’ (plant) and ‘Butta’ (motif or design). Chedibutta saree has the iconic 'plant and flower' motif woven on the border and Pallu (edge of the saree), and these small Buttas punctuated beautifully all over the saree. This flower plant design or the Chedibutta design is the intrinsic characteristic of this saree, said Sanjai Gandhi.

It is totally a handloom product made in in art silk and cotton mix fabric. One Chedibutta saree contains eight Chedibutta designs in the body and 5 on the Pallu. The saree is woven using art silk thread while the Chedibutta designs are made using brightly coloured cotton threads.

The entirely manual process involves preparation of cotton yarn using a Charkha and the preparation of the warp beam to the complete weaving process of the saree. The weavers do not use a power loom or a peddle loom. The Chedibutta design is not made by Jacquard machines either. Multiple cotton colour yarns are used to make each design and there are colour variations from design to design within a single Saree. The weavers use pirns to wind the weft yarn during the pirn-winding process and shuttles are used as carriers of yarn during weaving.

The Chedibutta saree has a soft texture which is suitable for the tropical climate. It is comfortable in summer and warm during the winter. Due to the nature of the raw materials used, these sarees do not wrinkle easily and are easy to maintain. They weigh light too.

Indian farmers have planted 23.7 million hectares with summer-sown rice so far, according to the farm ministry's latest data, up 1.71% year-on-year, as crucial monsoon rains revived in July and helped farmers accelerate sowing.

 

Higher rice planting in India, the world's second biggest producer of the grain, will ease concerns about the lower output of the staple.

 

Earlier this month, India ordered a halt to its largest rice export category - a move that will roughly halve shipments by the world's largest exporter of the grain.

 

Farmers typically start planting rice, corn, cotton, soybeans, sugarcane and peanuts, among other crops, from June 1, when monsoon rains are expected to begin drenching India. Sowing usually lasts until July and early August.

 

Summer rains are crucial as nearly half of India's farmland lacks irrigation.

 

India received 10% below normal rains in June, but in some states, the rainfall deficit was as much as 60% below average.

 

The India Meteorological Department defines average, or normal, rainfall as ranging between 96% and 104% of a 50-year average of 87 cm (35 inches) for the four-month season.

 

India's weather office has forecast an average amount of rain in July despite the likely emergence of the El Nino weather pattern.

 

July rainfall is crucial as it accounts for most of the precipitation for the four-month-long monsoon season.

 

This year, the delayed arrival of monsoon rains and lower rainfall in some southern, eastern and central states held back the planting of summer crops even as the monsoon covered the entire country nearly a week in advance.

 

Some regions in India, including breadbasket states such as Punjab and Haryana, have received torrential rains in July, triggering floods. Still, dry weather conditions prevail in some parts of the country.

 

Farmers planted 17.1 million hectares with oilseeds, including soybeans, 2.3% more than a year earlier. Corn was planted on 6.9 million hectares, almost unchanged from last year. The cotton area was marginally lower at 11.8 million hectares.

India would host the fifth World Coffee Conference (WCC) for the first time in Asia from September 25 to 28 in Bengaluru. WCC also announced tennis player Rohan Bopanna as its brand ambassador.

 

'Sustainabilty through Circular Economy and Regenerative Agriculture' is the central theme for the event.

 

The event logo and theme were unveiled at an event here on Monday.

 

Producers, curers, roasters, exporters, policy makers and researchers from 80-plus countries would gather at WCC 2023, it was stated.

The European Union's (EU) stringent deforestation regulation would provide new opportunities for domestic agro-based industry players, as against their global competitors, as forest cover in India is increasing significantly, an official said.

While several countries in Latin America and Africa have cleared their forests for agricultural purposes, India's forest cover is increasing and there is no practice here in the country to cut forest for agri activities.

 

The government official said these regulations provide an opportunity for 'our industry because our forest cover has increased, our reserve forest is strong and it is increasing.

'Our forest land is different from agri land. We can demonstrate these facts to the EU and converge to some kind of understanding on this regulation'.

 

According to a report by think tank Global Trade Research Initiative (GTRI), India's exports of products like coffee, leather hides and paperboard worth USD 1.3 billion annually to the European Union will get impacted due to the deforestation regulation adopted by the EU.

Within three weeks of introducing the carbon border tax, the EU Council on May 16, adopted the European Union Deforestation-Free Products Regulation (EU-DR).

 

The report has also stated that the EU-DR appears to prioritise protecting its own agricultural sector and promoting exports, making imports more difficult, as it is a trade barrier disguised as a green measure.

The regulation covers cattle, buffalo, the meat of bovine animals, preparations, oil cake, soya beans, palm oil, cocoa bean, powder, chocolate, coffee, leather hide, skin, paper, paperboard, wood, wood articles, wood pulp, boards and wood furniture.

 

According to a trade expert, as the country's forest cover continues to witness an encouraging upward trend, Indian agricultural producers find themselves in a favourable position to cater to the EU's sustainable demands without resorting to forest clearance for agricultural purposes.

As per the India State of Forest Report (ISFR) 2021, India's forest and tree cover has risen by 2,261 square kilometres in the last two years with Andhra Pradesh growing the maximum forest cover of 647 square kilometres.

 

According to the report, India's total forest and tree cover is now spread across 80.9 million hectares, which is 24.62 per cent of the geographical area of the country.

Indian officials are continuously engaged with the EU on these issues, including CBAM (carbon border adjustment mechanism) on different platforms.

 

'However, one thing is clear that this is a new way of doing business and we have to conform to this. You can not just fight or sit outside as it will not help our industry,' the official, who did not wish to be named, said.

The expert said that India has limited options to counter these measures as they are for all countries which trade with the EU and not against India.

 

Taking the matter to the WTO dispute settlement mechanism too would not help more, because the mechanism is kind of defunct at present and imposing similar tariffs on EU products may also hurt Indian industry, the expert added.

India has to engage with the EU as it would not be possible to stop doing business with them.

 

EU measures are showing that they want to reduce their dependency on China and develop technologies and future-ready industry.

'It looks like some re-alignment is going on in the EU. So we have to see how we can participate in that re-alignment,' the official added.

 

As per the deforestation regulation, Indian exporters have to ensure that these products have been grown on land, which has not been deforested after December 31, 2020.

The new rules will apply to large firms after 18 months and small firms after 24 months. Thus, the timeline for large firms is December 2024 and for small firms is June 2025.

For the products covered under the carbon tax and EU-DR, the EU's share in India's global exports is 23.6 per cent.

The EU claims it wants to reduce its contribution to global deforestation by promoting 'deforestation-free' products, but this is seen as a deceptive narrative, the GTRI report has said.

'India has a functioning blockchain-enabled trace and track system being implemented by the Agricultural & Processed Food Products Export Development Authority (APEDA) for grape exports to the EU and other regions.

'It needs to be adopted for all covered products, and make exporters aware of the compliance requirement,' GTRI co-founder Ajay Srivastava has said.

Singapore is in close contact with Indian authorities to seek exemption from the country's ban on export of non-basmati rice, the city state's food agency said on Friday. 'Singapore Food Agency (SFA) is working closely with importers to increase the import of different varieties of rice from various sources. Singapore is also in close contact with the Indian authorities to seek exemption from the ban,' said a statement from SFA.

 

On July 20, the Indian government banned exports of non-basmati white rice to boost domestic supply and keep retail prices under check during the upcoming festive season. Non-basmati white rice constitutes about 25 per cent of total rice exported from the country.

 

In 2022, India accounted for about 40 per cent of Singapore's imported rice, said the agency. Singapore imports rice from more than 30 countries.

 

 

Under Singapore's Rice Stockpile Scheme, rice importers must hold a buffer inventory equivalent to twice of their monthly imports. This helps ensure an adequate supply of rice in the market, SFA said in a statement.

 

Countries expected to be hit by the ban include African nations, Turkey, Syria, Pakistan, among others.

 

In the first quarter of the current fiscal, about 15.54 lakh tonnes of white rice was exported from India against only 11.55 lakh tonne in the year-ago period, which means an increase by 35 per cent.

 

Infrastructure development in the Port Sector is a continuous process. The process inter-alia involves the construction of new berths and terminals, mechanization of existing berths and terminals, capital dredging for deepening drafts for attracting large vessels in port channels, development of road and rail connectivity etc., help in increasing the capacity of Major Ports.  As a result, the cargo handling capacity of the Major Ports has been steadily going up. The cargo handling capacity of Major Ports as on 31.03.2023 is 1617 MTPA, which is sufficient to handle the existing cargo traffic at the Major ports.

 

Under PM Gati Shakti, DPIIT prepared a Comprehensive Port Connectivity Plan (CPCP) in consultation with Ministry of Ports, Shipping and Waterways, Ministry of Railways, Ministry of Road Transport & Highways and State Maritime Boards in September, 2022.  CPCP incorporates 298 connectivity projects of which 191 projects (101 road and 90 rail).  These projects are aimed at enhancing last mile and hinterland connectivity of ports, which in turn will enhance the port efficiency, enabling the ports to handle more cargo. 

 

These road and rail infrastructure gap projects are primarily undertaken by the Ministry of Railways and Ministry of Road Transport & Highways on a priority.

 

This information was given by the Union Minister for Ports, Shipping and Waterways, Shri Sarbananda Sonowal in a written reply to the Lok Sabha.

The Indian government has prohibited the export of deoiled rice bran until November, a Directorate General of Foreign Trade notification said on Friday.

 

'Export of de-oiled rice bran under ITC HS code 2306 and under any other HS code is prohibited until November 30, 2013,' the DGFT said in a notification.

 

The development came after more than a week, when the Centre prohibited the export of non-basmati white rice.