In order to ensure overall growth and development of food processing sector across the country including Karnataka, Ministry of Food Processing industries (MoFPI) has been implementing Central Sector Umbrella Scheme - Pradhan Mantri Kisan SAMPADA Yojana (PMKSY) since 2016-17, centrally sponsored PM Formalization of Micro Food Processing Enterprises Scheme (PMFME) since 2020-21and Production Linked Incentive Scheme for Food Processing Industry (PLISFPI) since 2021-22.

 

Under component schemes of PMKSY, MoFPI mostly provides credit linked capital subsidy with total outlay of Rs 4600 Cr for 15 Finance Commission Cycle. Ministry also provides financial, technical and business support to micro food processing enterprises through PMFME scheme with outlay of Rs 10,000 Cr for a period of 5 Years (2020-21 to 2024-25), whereas PLISFPI is targeted to facilitate expansion of food processing capacity by creating champion brands in Food Processing Sector with total outlay of Rs 10,900 Cr for a period of 6 years (2021-22 to 2026-27).

 

Since 2019-20, a total of 373 food processing units have been approved for assistance under Creation/ Expansion of Food Processing & Preservation Capacities (CEFPPC), a component scheme of PMKSY, out of which 16 units are located in Karnataka.

 

A total of 38466 micro food processing enterprises have been approved for assistance under PMFME since 2020-21, out of which 2444 micro food processing enterprises are located in Karnataka.

 

This information was given by Union Minister of State for Food Processing Industries Shri Prahlad Singh Patel in a written reply in the Rajya Sabha.

The Government of India, Department of Agriculture & Farmers' Welfare (DA&FW) is implementing 'Innovation and Agri-Entrepreneurship Development' programme under Rashtriya Krishi Vikas Yojana (RKVY) from 2018-19 with an objective to promote innovation and agri-entrepreneurship by providing financial support and nurturing an incubation ecosystem in the country. This Department has appointed five Knowledge Partners (KPs) and twenty-four RKVY Agribusiness Incubators (R-ABIs) from across the country for incubation of startups and implementation of this programme.

 

Start-ups are trained and incubated at various Knowledge Partners (KPs) and RKVY Agribusiness Incubators (R-ABIs) appointed under the programme across the country. Technical and financial assistance is provided to startups to launch their products, services, business platforms, etc into the market and facilitate them to scale up their products and operations to attain business viability.

 

Besides, KPs and R-ABIs are promoting these startups by linking them with various institutions and organizations for their product & technology validation, certification, etc. Government of India organizes various national level programmes including agri-startup conclave, agri fair and exhibitions, webinars, workshops to serve as a platform for the promotion of agri startups by linking them with various stakeholders.

 

Under the programme, a financial support up to Rs. 5.00 lakh is provided at the idea/pre seed stage and up to Rs. 25 lakh at the seed stage. So far, a total of 1176 agri startups have been supported under the programme with financial assistance of Rs. 75.25 crores.

 

Besides, Government of India has approved a proposal to set up an 'Accelerator Fund' of Rs. 500 crore for five years commencing from 2023-24 to encourage the young entrepreneurs to setup agri-startups. Accelerator fund will help to scale up the successful startups with innovative technologies having the potential of modernizing the agriculture ecosystem of the country. This initiative will also help to the farmers by having value addition to the agricultural produces, better supply chain and market linkages etc and to boost agricultural economy in the rural areas of the country.

 

Under the Accelerator Fund programme, certain activities are planned like development of institutional mechanism and operational guidelines, identification of problem statements in agriculture & allied sectors, selection of agri-startups having high impact & innovative solutions, technical and financial support to encourage selected agri-startups and capacity building, etc during 2023-24.

 

 This information was given by the Union Minister of Agriculture and Farmers Welfare, Shri Narendra Singh Tomar in a written reply in Rajya Sabha today.

Talks between Britain and India on a free trade agreement (FTA) have gained momentum but further work is needed on services and tariffs to secure a deal, a British source close to the negotiations told Reuters.

 

Britain began free trade talks with India in January last year as it looks to establish its credentials as an independent trading nation after leaving the European Union and is seeking an Indo-Pacific tilt to its foreign policy.

 

Talks had seemed stuck earlier this year, with the two sides struggling to make progress in a number of key areas amid concern there could be further political complications if talks drag on. Elections are expected in both countries next year.

 

However, momentum has improved following the conclusion of the eleventh round of talks this week, the source said, allowing negotiators to turn to more commercially sensitive topics that are likely to be some of the most difficult to resolve.

 

'The talks certainly kicked up a gear during the last round, and gained momentum, but there is still a long way to go, such as on services or tariffs for various goods,' the source said.

 

'It's not about a race to the finish – it's about driving home an ambitious deal that will benefit us both in the years and decades to come.'

 

After the ambitious timelines of former prime minister Boris Johnson slipped, current British leader Rishi Sunak has emphasised that his government will take time to strike the right deal.

 

In a sign of the political impetus in the talks, India's trade minister Piyush Goyal and Commerce Secretary Sunil Barthwal both visited London during the round.

 

The Indian government has said the talks are at a critical stage, and that ministerial engagement during the round had helped to overcome obstacles in talks. The next round is expected to commence in August.

As per evaluation studies carried out for relevant component schemes of Pradhan Mantri Kisan SAMPADA Yojana (PMKSY), substantial direct/indirect employment opportunities have been created in projects supported through its relevant component   schemes. The evaluation study of Integrated Cold Chain and Value Addition Infrastructure Scheme under PMKSY, conducted by M/s NABARD Consultancy Limited in the Year 2020, has estimated that each project has resulted in creation of about 600 direct/ indirect employment opportunities. It is estimated that about 9.69 Lakh direct/ indirect employment opportunities have been generated through projects completed under component schemes of PMKSY. As Production Linked Incentive Scheme for Food Processing Industry (PLISFPI) and Pradhan Mantri Formalisation of Micro food processing Enterprises (PMFME) are relatively new schemes, no such evaluation study has been conducted for these. 

 

Ministry of Food Processing Industries (MoFPI) is implementing a centrally sponsored PM Formalisation of Micro food processing Enterprises (PMFME) Scheme for providing financial, technical and business support for setting up / upgradation of 2 lakh micro food processing enterprises in the country through credit linked subsidy during five years from 2020-21 to 2024-25 with an outlay of Rs. 10,000 cr. The scheme aims to enhance the competitiveness of individual micro-enterprises in the unorganized segment of the food processing industry and promote formalization of the sector. Under the Capacity Building component of PMFME Scheme, MoFPI provide Grants for training of Trainers, District Resource Persons, Entrepreneurs and various other groups. Grants upto 50% for branding and marketing support to groups of Micro Food Processing Enterprises is available under related component of PMFME Scheme.

 

This information was given by Union Minister of State for Food Processing Industries Shri Prahlad Singh Patel in a written reply in the Rajya Sabha.

India's contracting exports have prompted the government to introduce incentives for startups and new exporters, and relax compliance norms for the existing exporters.

 

Under the Market Access Initiatives (MAI) Scheme, startups and new exporters have been made eligible for airfare reimbursement to participate in overseas events while the ceiling for this incentive for existing exporters has been raised 20%.

 

India's goods exports shrank the most in three years, at 22% on-year, in June to $32.97 billion. Under the scheme, financial assistance is provided for export promotion activities.

 

Earlier, new exporters and startups didn't get such incentives but now those with Rs 50 lakh annual turnover in the domestic market will get some support.

 

The benefits of higher airfare reimbursements will also apply to the exporters when they host foreign buyers in reverse buyer-seller meets in India.

 

'Incentives are important as mega trade fairs are being thought of and there is a need to scale up our exhibitions and invite foreign companies to exhibit here,' said an official.

 

India plans mega trade fairs for food, textiles and auto components, on the lines of Messe Frankfurt, Gulf Food and Canton Fair, to achieve 12% growth in good exports by 2030.

 

'The coverage of new entrepreneurs with nil exports for airfare support under the scheme is well conceived and pragmatic to encourage startups to enter into exports field particularly as we are looking towards a $1 trillion exports by 2030,' said Ajay Sahai, director general, Federation of Indian Export Organisations (FIEO).

 

Benefits under the MAI scheme are availed through activities organised by the government, states, export promotion councils and commodity boards, among others.

The FSSAI has decided to extend the timeline for FSSAI-NABL integrated assessment scheme for food labs until March 31, 2024.  

 

The food authority has issued an order, in this regard, saying that all laboratories already notified by FSSAI, which have not obtained FSSAI-NABL (National Accreditation Board for Testing & Calibration Laboratories) integrated assessment accreditation, must obtain the same prior to the expiry of their NABL accreditation validity period or before March 31, 2024, whichever is earlier.  

 

According to the food authority, FSSAI will only accept fresh proposals from laboratories for FSSAI recognition and notification if the laboratory has obtained accreditation under FSSAI-NABL integrated assessment scheme.

 

And such labs should get FSSAI-NABL integrated assessment on or before March 31, 2024.  

 

In 2019, FSSAI issued a notice, in this regard, asking all the notified laboratories to get integrated assessment for accreditation under FSSAI-NABL unified approach of laboratory accreditation/recognition/approval system which also has other regulatory boards.  

 

And, accordingly, the food testing labs willing to apply for FSSAI recognition/ renewal/extension of scope and so on were asked to apply only through the unified system of integrated assessment.  

 

Subsequently, in September 2022, the date for such integrated assessment was extended until June 30, 2023.  

 

This will be the third time FSSAI extended the timeline.

The removal of retaliatory customs duties on eight American products, including apples, walnuts, and lentils, will not result in a loss to the country, Parliament was informed on Friday. India had imposed these duties on 28 US products in retaliation to America's move to increase import duty on certain steel and aluminium goods.

 

During Prime Minister Narendra Modi's recent visit to Washington, both sides decided to resolve six trade disputes at the World Trade Organisation. India also agreed to remove the duties.

 

The government has decided to remove retaliatory customs duties on import of almonds (fresh or dried, in shell), walnuts, chickpeas, lentils, apples, medical diagnostic reagents, and boric acid, Minister of State for Commerce and Industry Anupriya Patel said in a written reply to the Rajya Sabha.

 

'The removal of retaliatory tariffs or cuts in import duty with the US does not result in a loss to India,' she said.

 

'It simply means that the additional duties imposed as a response to the US measures are no longer applicable and the MFN (most favoured nation) tariff rates as applicable to all countries prevail,' she added.

 

In a separate reply, she said India's foodgrains exports have registered a steady growth in the last few years. This, she said, is reflected in the increase in the country's share in world foodgrains exports from 3.38 per cent in 2010 to 7.79 per cent in 2022, according to UN Comtrade statistics.

 

Wheat exports declined to USD 1.52 billion in 2022-23 as compared to USD 2.12 billion in 2021-22. India has currently banned wheat exports.

Agriculture is a victim and a source of climate change. But it also offers solutions. Developing countries heavily depend on agriculture and lack the resources to look for cost-effective solutions to climate change in agriculture itself. India has committed to achieving the target of net-zero emissions by 2070, and towards this, it has taken several proactive actions. The Government of India enacted “The Energy Conservation (Amendment) Bill, 2022” for promoting the use of renewable energy and creating a national carbon market.

 

The recent Union Budget 2023 lays considerable emphasis on Green Growth for sustainable economic development. Nonetheless, most of such actions are broad-based and indicative and not specific to any economic activity. Recognising this gap, the Ministry of Environment and Forests has recently proposed a Green Credit Programme under the Environment Protection Act, 1986, which provides a basic framework for harnessing the green growth potential of different farm and non-farm activities through economic incentives.

 

Nodal agency to issue credits

The programme provides for a market-based mechanism to reward voluntary environmental actions that help conserve nature and mitigate climate change. It offers green credits as incentives for specific activities that deliver positive environmental outcomes. The programme involves all stakeholders, that is, individuals, industries, farmer producer organizations, urban local bodies, gram panchayats, and private entities to earn green credits for the adoption of eco-friendly practices including tree plantation, water conservation, sustainable agriculture, waste management, mangrove conservation and restoration, eco mark labelling, sustainable building and infrastructure, and air pollution reduction.

 

The Indian Council for Forestry Research and Education (ICFRE) is designated as the main agency to issue green credits, and oversee its implementation and tracking the progress. The green credits earned through these activities can be traded on a domestic market platform. In addition, the activities generating green credits are also eligible for carbon credits for trading in the carbon market.

 

The Government of India has taken several initiatives for promoting sustainable development of agriculture, but it is for the first time a dedicated domestic voluntary national market mechanism has been proposed to incentivize stakeholders engaged in agriculture for their adaptation and mitigation actions.

 

Repurposing subsidies

The Programme can be a game changer for providing much-needed market mechanism for sustainable development of agriculture and enhancing farmers’ income. First, several agricultural practices such as zero-tillage, direct seeding and alternate wet and drying systems in rice, green manuring, organic manure, cultivation of legume crops, rainwater harvesting and conservation, organic or natural farming, precision agriculture, and agro-forestry generate several intangible ecosystem services, which are not valued but are freely available to the society. Through the green credits the farmers will be rewarded for the adoption of farm practices that generate positive externalities to the environment, human and animal health.

 

Second, the programme can serve as an entry point for repurposing agricultural subsidies, which have become detrimental to natural resources and unsupportive of sustainable production patterns. For instance, the heavily subsidised electricity for irrigation has caused a significant reduction in the groundwater table in States such as Punjab and Haryana. The burning of paddy straw pollutes the environment, affecting human and animal health. The current subsidy regime can be transformed by linking economic incentives for the green credits with the adoption of environmental-friendly agricultural practices.

 

Challenges

Though quite promising, several practical challenges are likely to crop up while operationalising the Green Credit Programme. The biggest challenge is the establishment of an equivalence factor for allocating green credits across different activities. For example, estimating equivalence factor for water conservation and carbon sequestration is complex and difficult task.

 

Another hurdle is the valuation of intangible ecosystem system services that agriculture generates. As the primary objective of the Programme is to provide monetary incentives for the protection of the environment, the absence of robust mechanisms for the verification of green credits and their monitoring may lead to greenwashing. Furthermore, measuring green credits at the farm level is a difficult task due to the significant diversity in farm size, cropping patterns, and agronomic practices. Of the total farm households, about 86 per cent have landholdings of less than or equal to two hectares, and they often face significant financial constraints on the purchase of eco-friendly inputs and the adoption of capital-intensive farm practices.

 

The first step for implementation of the Green Credits Programme is that the prices of the green credits from agricultural practices need to be differentiated from the prices of the practices in other sectors. There is a very probability of a reduction of crop yields in the initial years of switching over to green practices. Second, the programme should adopt a community approach for the certification of green credits to minimize transaction costs. Third, to avoid the risk of greenwashing, the pricing of the green credits must be differentiated by the type of activity. Finally, agriculture mitigates the greenhouse gas emissions and enhances carbon sequestration; hence the price of green credits should be fixed higher for the agricultural activities.

Thailand and Vietnam increased rice prices by $5-10 a tonne on Friday even as the global rice market switched to a 'wait and watch mode' after India banned exports of (non-basmati) white (raw) rice with immediate effect on Thursday evening.

 

However, traders and analysts expect both rivals of India, the numero uno rice exporter, to increase prices by at least $50 a tonne when the market opens next week. 

 

Neighbour’s pride

'India’s envy, neighbour’s pride is what Indian rice export situation is. Prices will be up at least 10 per cent in the global market,' said Rajesh Jain Paharia, a New Delhi-based exporter. 

 

According to a Thailand trade source, prices of five per cent, 25, and 100 per cent Thai rice have gone up by $5-6 after the ban. 'It has been difficult to get quotes today,' the source said, pointing to the 'wait and watch' attitude. 

 

All grades of Vietnam white rice were quoted above $515 a tonne, while Pakistan rates were above $500 a tonne. Myanmar rice prices were also quoted above $500. 

 

'Prices could rise to $700 a tonne within a month and don’t be surprised if you see a 2008-like bullish run when the rates topped $1,000 a tonne,' a trade source said on the condition of anonymity. 

 

Impact spill-over

'There was not much activity in Thailand and Vietnam. But we expect prices to rise by $50-100 a tonne,' Jain said. 

 

'We have no idea as of now what Vietnam or Thailand are up to. But they will definitely hike the prices and we will see next week,' said VR Vidya Sagar, Director, Bulk Logix. 

 

The increase in rice prices will not be confined just to white rice. Parboiled (boiled) rice rates will likely increase as some countries may shift to that variety, whose exports are allowed. 

 

According to the Thai trade source, India’s parboiled rice prices shot up to $475-495 a tonne, up at least $30 a tonne. 

 

Food price inflation

'If white rice prices rise to say $650 a tonne and parboiled is available at $500, some consumers will definitely shift to the variety,' said the analyst. 'Parboiled rice exports could be next in the line (for export ban),' he said.

 

Research agency BMI, a unit of Fitch Solutions, said the Indian Government’s decision to promptly ban white rice exports was 'the June rise in the rate of Indian food price inflation to 4.5 per cent year-on-year'.

 

The Centre’s decision will have material implications for Indian inflation as well as substantial ramifications for trends in the global rice market, it said. 

 

S Chandrasekharan, a Delhi-based trade analyst, said on Thursday that despite India imposing 20 per centexport duty on white rice shipments in September 2020, they had gone up by 23 per cent.

 

‘Watch out mislabelling’

In addition, he said, white rice monthly exports since the beginning of the fiscal year had increased to over 5 lakh tonnes from around four lakh tonnes a year ago. During April-May this fiscal, nearly 11.5 lakh tonnes of white rice were shipped out of the country. 

 

'The government has now to ensure that no mislabelling of white rice is done as parboiled for exports. It has to also ensure that white rice is not pushed out as some cheap Basmati rice. The authorities have to be strict in enforcing the ban,' he said.

 

In addition, he suggested that the Centre fix a minimum export price for basmati shipments. 

 

Customs authorities got going in Chennai on Friday by not permitting idli rice as it is seen as single-boiled rice and not parboiled. Steamed rice shipments are also expected to be curbed as a result, the trade source said.

 

El Nino factor

Research agency BMI said the global rice market remains tight by recent historical norms, which the Indian ban will exacerbate. 'In conjunction with India’s September 2022 ban on the export of 100 per cent broken rice, between 30 per cent and 40 per cent of India’s rice exports are now offline. In conjunction with the supply-side risks associated with El Niño, we expect the export ban to keep upside pressure on prices,' it said.

 

Rice prices had surged to a five-year high earlier this month on fears El Nino may affect rice production in Asia. Thailand was among the first to say that its rice production might be 6 per cent lower this year. 'Vietnam production will also likely be hit by El Nino,' said the trade source.

 

In India, kharif paddy sowing has encountered different problems. One, deficient rains has affected sowing in key regions such as West Bengal, Andhra Pradesh, Chhattisgarh, Tamil Nadu and Karnataka. The second problem has been caused by floods in Punjab and Haryana, which forced the Centre to ban exports of white rice.

 

Tardy kharif sowing

On Thursday, the Indian Government caught the global rice market by surprise, banning exports of white rice as part of its efforts to control rising foodgrain prices. The move is also seen as a measure to overcome any supply shortage.

 

In addition to rise in white rice exports, at least three lakh tonnes of the rice were under-invoiced and exported below $300 a tonne since September 2022. Over the last two years, India has exported at least 17 million tonnes of non-basmati rice. 

 

The Centre’s decision came following tardy progress in kharif paddy sowing, which was 8.5 per cent lower than last year at 122.18 lakh hectares (lh) as of July 14.  

 

On the other hand, rice stocks with the Central pool maintained by the Food Corporation of India (FCI) dropped to a seven-year low of 25.34 million tonnes. The agency has an additional 23.3 mt of unmilled paddy (15.72 mt of rice). 

India’s share in the world food grains market, based on the exported values in 2022, was 7.79% (Source: ITC Trade Map calculations based on UN COMTRADE and ITC statistics).

 

Details of top 10 agriculture commodities exported from the country and top 10 importing countries of India’s agriculture products, during the last five years, are given in the table below:

 

India’s exports of foodgrains have registered a steady growth in last few years which is reflected in the increase in India’s share in world foodgrain exports from 3.38% in 2010 to 7.79% in 2022 as per UN COMTRADE statistics.  Export promotion is a continuous process. The Government has taken several steps at State/ District levels to promote exports of agriculture products, including foodgrains. State-specific Action Plans have been prepared and State Level Monitoring Committees (SLMCs), Nodal Agencies for agricultural exports and Cluster Level Committees have been formed in a number of States. Country and product-specific action plans have also been formulated to promote exports.

 

The Agricultural & Processed Food Products Export Development Authority (APEDA), a statutory body under the administrative control of Department of Commerce, has been providing financial assistance to the exporters of agricultural and processed food products, including foodgrains, under components such as Development of Export Infrastructure, Quality Development and Market Development under its scheme namely “Agriculture & Processed Food Export Promotion Scheme of APEDA”. APEDA assists exporters in promoting exports by organising buyer-seller meets (BSMs); participation in international trade fairs and exhibitions; taking up the Sanitary and Phytosanitary (SPS), Technical Barriers to Trade (TBT) and Market Access issues with the importing countries; and regular interactions with the Indian Missions to tap export opportunities in various countries.

 

Further, Export Promotion Forums (EPFs) for Rice and Nutri-Cereals have been set up under the aegis of APEDA. The EPFs strive to identify and anticipate developments pertaining to production and exports of these products, reach out to stakeholders across the entire production/ supply chain of exports and make recommendations for necessary policy interventions and other measures to promote exports. 

 

Farmer Producer Organizations (FPO) have been established for the purpose of leveraging collective economies of scale in the production and marketing of agriculture and related products. This helps lower the average cost of production, hence increasing competitiveness in foreign markets.