Tamil Nadu has pipped Maharashtra and Gujarat to emerge as the top state among coastal states in the Niti Aayog’s Export Preparedness Index 2022.

 

The index is aimed at assessing the readiness of the states in terms of their export potential and performance.

 

Tamil Nadu is followed by Maharashtra, Karnataka, Gujarat, Andhra Pradesh, Odisha, West Bengal and Kerala in that order in the ranking of coastal states, according to the government think tank’s report released on Monday.

 

Among hilly/Himalayan states, Uttarakhand has ranked at the top position. It is followed by Himachal Pradesh, Manipur, Tripura, Sikkim, Nagaland, Meghalaya, Arunachal Pradesh and Mizoram in that order.

 

Haryana topped the chart among the landlocked regions. It was followed by Telangana, Uttar Pradesh, Punjab, Madhya Pradesh and Rajasthan.

In the category of union territories/small states, Goa was ranked first. Jammu and Kashmir, Delhi, Andaman and Nicobar and Ladakh were ranked second, third, fourth and fifth, respectively.

 

The index can be used by the regions to benchmark their performance against their peers and analyse potential challenges to develop better policy mechanisms to foster export-led growth at the sub-national level. The ranking is based on four main pillars: policy, business ecosystem, export ecosystem and export performance.

 

The index is also aimed at promoting competition among all states (coastal, landlocked, Himalayan and UTs) to bring about favourable policies, ease the regulatory framework, create necessary infrastructure and assist in identifying strategic recommendations for improving export competitiveness.

 

Speaking at the release of the report, NITI Aayog CEO BVR Subrahmanyam said that states are fundamental stakeholders in the country’s exports 'because that is where the action is.' 'Entire ecosystem for export happens in states,' he said adding the report will help in raising awareness about the subject. He also said that the country needs to broad-base its exports.

Centre has decided to abolish the retaliatory tariff of 20 per cent on Washington apples by the end of September, The Economic Times (ET) has reported. The government imposed the tariff on the red and juicy variety of fruit around four years ago when President Trump was in power.

 

An import duty of 70 per cent is imposed on Washington apples, which is 20 percentage points more than the 50 per cent import duty applicable for the apples imported from Iran and Turkey. The higher duties resulted in a higher price for these apples leading to a decline in their imports.

 

As the prices of Washington apples are set to ease, there is a possibility of these apples flooding Indian markets, this has made domestic apple growers apprehensive of the development. Apple growers in the Kashmir valley fear that the reduction in import duties will have a negative impact on demand for their apples.

 

The India representative of the Washington Apple Commission, Sumit Saran was quoted in the ET report as saying, 'The government on June 22 had indicated to do away with the 20 per cent retaliatory import duty that was imposed during the Donald Trump regime, and it will become effective within 90 days.'

 

Washington apple growers have already started cultivating more apples to cater to the expected rise in demand from the Indian markets, the report said.

 

Before the imposition of a higher tariff on Washington apples, India imported seven million boxes with 22kg of apples in each box. Washington apples are imported between September and February, as the domestic produce comes to an end, the report cited Saran as saying.

The Export Promotion Council for Handicrafts (EPCH) is organising the GI Fair India 2023 at India Expo Centre in Greater Noida from July 20-24.

 

GI Fair India is a one-stop-shop where one can see and buy the largest variety of India’s GI tagged products from regions far and wide, across the country. It is being supported by Ministry of textile and Ministry of Commerce & Industry.

 

Besides exhibitors from the several states and union territories of India, participating organisations include Tea Board of India; Spices Board India; Agricultural and Processed Food Products Export Development Authority; Jammu & Kashmir Trade Promotion Organization (JKTPO); Uttarakhand Handloom and Handicraft Development Council (UHHDC); Uttarakhand Organic Commodities Board; Goa State Council for Science & Technology and many more.

 

Speaking about the upcoming fair, Dileep Baid, Chairman, EPCH, said, 'this show will offer a common platform to find Muzaffarnagar Gur; Sambhal Horn Craft; Mainpuri Tarkashi; teas, Gamosa and Muga silk from Assam and many more authentic products from across India.'

 

GI Fair aims to connect these invaluable native products, aptly called Legal Local, to connoisseurs and clientele in India as well as the global market. The Fair will be open from 10 am to 7 pm on all 5 days and the entry to the fair is free.

Avocados Australia have announced that all 10 trial shipments of fresh Australian Hass avocados have been successfully received by Indian officials.

 

Market access to India was pending the successful despatch of these 10 trial shipments and now that this is complete audited and accredited Australian avocado growers can proceed with the next step toward broad market access to India.

 

Avocados Australia would like to thank Simpson Farms, Costa Group, The Avolution and Dons Fort Packing for their professionalism and care in ensuring that the trial shipments went smoothly. This is great news for the Australian avocado industry.

Commerce and Industry Minister Piyush Goyal will hold discussions with representatives of top 100 companies on July 22 in Mumbai on ways to increase share of domestic manufacturing and boost the country's exports, an official said. Senior officials from the Department for Promotion of Industry and Internal Trade (DPIIT) including Secretary Rajesh Kumar Singh are also expected to participate in the deliberations.

 

In the discussions, the ministry would seek suggestions from the industry on ways to increase share of manufacturing in India's GDP; increase exports of goods and services; and reforms to further unlock economic development and improve business environment, the official added.

 

The deliberations -- Unnati Roundtable: Top 100 companies from NSE/BSE -- assume significance as the country's exports are declining due to global demand slowdown.

 

India's exports contracted by 22 per cent, the steepest decline in the last three years, to USD 32.97 billion in June on account of global demand slowdown, especially in the Western markets like the US and Europe.

 

Cumulatively, exports dipped by 15.13 per cent to USD 102.68 billion during April-June this fiscal. Imports too declined by 12.67 per cent to USD 160.28 billion.

 

The growth of eight key infrastructure sectors slowed down to 4.3 per cent in May 2023 due to a decline in the production of crude oil, natural gas and electricity, according to the data released by the government.

 

India's industrial production rose to 5.2 per cent in May from 4.5 per cent in April 2023, mainly due to good performance by the manufacturing and mining sectors. The factory output growth measured in terms of the Index of Industrial Production (IIP) stood at 19.7 per cent in May 2022, mainly due to a lower base effect. As per the IIP data released by the National Statistical Office (NSO), the manufacturing sector's output grew 5.7 per cent in May 2023 against a 20.7 per cent expansion a year ago.

 

Over the years, the government has taken a series of measures such as rolling out of the production linked incentive scheme and Remission of Duties and Taxes on Export Products scheme and reducing compliance burden for industry with a view to promote ease of doing business.

India has voiced support for the U.N.'s efforts in continuing the Black Sea Grain initiative and expressed hope for an early resolution to the present impasse, a day after Russia announced it was terminating implementation of the U.N.-brokered deal that allowed export of grain and related foodstuffs and fertilisers from Ukrainian ports.

 

Moscow on Monday said it was terminating the implementation of the Black Sea Initiative — a U.N.-brokered deal that allowed food exports from Ukraine amid the ongoing conflict with Russia — including the withdrawal of Russian security guarantees for navigation in the North-Western part of the Black Sea.

 

Addressing the U.N. General Assembly's annual debate on the 'Situation in the Temporarily Occupied Territories of Ukraine' on Tuesday, India's Permanent Representative to the U.N. Ambassador, Ruchira Kamboj, said New Delhi is concerned about the recent developments in the region, which have not helped in securing the larger cause of peace and stability.

 

'India has supported the efforts of the U.N. Secretary-General in continuing the Black Sea Grain Initiative and hopes for an early resolution to the present impasse,' Ms. Kamboj said.

 

'India continues to remain concerned over the situation in Ukraine. The conflict has resulted in the loss of lives and misery for its people, particularly for the women, children and elderly, with millions becoming homeless and forced to take shelter in neighbouring countries,' she said.

 

Ms. Kamboj asserted that India's approach to the Ukrainian conflict will continue to be people-centric.

 

'We are providing both humanitarian assistance to Ukraine and economic support to some of our neighbours in the Global South under economic distress, even as they stare at the escalating cost of food, of fuel and of fertilisers — which has been a consequential fall out of the ongoing conflict,' she said.

 

U.N. Secretary-General Antonio Guterres voiced deep regret over Moscow's termination of the implementation of the Black Sea Initiative decision, saying the initiative ensured the safe passage of over 32 million metric tonnes of food commodities from Ukrainian ports.

 

The World Food Programme (WFP) has shipped more than 725,000 tonnes to support humanitarian operations — relieving hunger in some of the hardest-hit corners of the world, including Afghanistan, Horn of Africa and Yemen, Mr. Guterres said.

 

He added that the Black Sea Initiative and the Memorandum of Understanding on facilitating exports of Russian food products and fertilisers have been a 'lifeline' for global food security and a beacon of hope in a troubled world.

 

'At a time when the production and availability of food are being disrupted by conflict, climate change, energy prices and more, these agreements have helped to reduce food prices by over 23 per cent since March last year,' he said.

 

The U.N.-brokered Black Sea Initiative agreed by Russia, Turkiye, and Ukraine allowed millions of tonnes of grain and other foodstuffs to leave Ukraine's ports, which Guterres said played an 'indispensable role' in global food security.

 

The U.N. noted that nearly one year into the agreement, more than 32 million tonnes of food commodities have been exported from three Ukrainian Black Sea ports to 45 countries across three continents.

 

The partial resumption of Ukrainian sea exports enabled by the Initiative has unblocked vital food commodities and has helped reverse spiking global food prices, which reached record highs shortly before the agreement was signed, the UN said.

 

Ms. Kamboj underlined that it is unfortunate that as the trajectory of the Ukranian conflict unfolds, the entire Global South has suffered substantial collateral damage.

 

'It is thus critical that the voice of the Global South be heard, and their legitimate concerns be duly addressed,' she said.

 

Ms. Kamboj further said in her remarks that reports of attacks on civilians and civilian infrastructure are deeply worrying.

 

'We have consistently advocated that no solution can ever be arrived at the cost of human lives. Escalation of hostilities and violence is in no one's interest. We have urged that all efforts be made for an immediate cessation of hostilities and an urgent return to the path of dialogue and diplomacy,' she said.

 

The Indian envoy underscored that dialogue is the only answer to settling differences and disputes, however daunting that may appear at this moment. 'The path to peace requires us to keep all channels of diplomacy open,' she said.

 

Noting Prime Minister Narendra Modi's repeated engagements with both Russia and Ukraine, Ms. Kamboj said it is essential to emphasise that 'we firmly believe that this is not an era of war. It is with this understanding and spirit that India actively participates in this debate.' She said that the global order that 'we all subscribe to' is based on international law, the UN Charter and respect for the territorial integrity and sovereignty of all States. 'These principles must be upheld without exception,' Ms. Kamboj said.

The Asian Development Bank (ADB) Wednesday retained India's economic growth forecast at 6.4% for FY24, on the back of recovery in consumption demand in both rural and urban areas, but said suppressed exports due to global slowdown will be a drag.

 

The Indian economy grew 7.2% in 2022-23. In an update to its Asian Development Outlook (ADO), ADB lowered its inflation projection for current fiscal year (FY24) at 4.9%, from 5% pegged in April, on softening crude oil prices, even though it estimated core inflation to remain 'stubbornly high'. 'Assuming normal rainfall and other weather factors, and no further geopolitical shocks, India is expected to grow by 6.4% in FY2023 and 6.7% in FY2024, as projected in ADO April 2023,' ADB said.

 

In current fiscal year, consumption demand in India is expected to recover with improvement in both rural and urban demand as reflected in such indicators as consumer confidence, urban unemployment, and motorbike sales.

 

Investment growth will remain robust, underpinned by strong bank credit growth and demand for housing, and supported by fewer interest rate hikes by the central bank.'However, the global economic slowdown has suppressed merchandise trade, which will be a drag on growth. On the supply side, growth will be buoyed by manufacturing as input prices cool,' ADB said in its July update to the outlook for Asia. With regard to inflation, ADB said as food and oil prices moderated, inflation eased below the 6 % upper tolerance level of the monetary policy.

 

Retail inflation has remained above 6 per cent for most part of 2022. As per latest data, it was 4.81% in June 2023. 'Expected softening of Brent crude prices in 2023 should lower headline inflation, but core inflation, which excludes food and fuel, is expected to be stubbornly high,' ADB said.

 

It said developing economies in Asia and the Pacific are expected to grow at 4.8 % in 2023, as robust domestic demand continues to support the region's recovery. Inflation is expected to continue falling, approaching pre-pandemic levels as fuel and food prices decline.

 

The growth forecast for 2024 is marginally revised down to 4.7% from a 4.8 % estimate in April, as demand for the region's exports of electronics and other manufactured goods is slowing, ADB said. China's economy is projected to expand 5% in 2023, unchanged from the April forecast, amid strong domestic demand in the services sector. In 2024, China's GDP is projected to grow 4.5%.

 

'Domestic demand and services activity are driving growth, while many economies are also benefiting from a strong recovery in tourism. However, industrial activity and exports remain weak, and the outlook for global growth and demand next year has worsened,' Park added.

 

The US, UK, EU and Japan have opposed extending the temporary peace clause agreed upon at the 2013 World Trade Organization (WTO) Bali conference that prevents legal action against any developing nation that breaches the food subsidy limits specified in the agreement on agriculture.

 

At an agriculture negotiation meeting at the WTO on Monday, the US said India’s expansion of support to its rice and wheat farmers has negative spillover effects. India has invoked the clause thrice.

 

'India said that the strongest evidence supporting the necessity of public stockholding was in its own actions during the pandemic, when it mobilised its food stocks and provided food to 80 million people in 18 months’ span,' said a Geneva-based official.

 

Public stockholding is a policy tool used by governments to purchase, stockpile and distribute food when needed.

 

Developing countries’ food subsidies are protected by an interim peace clause which shields food procurement programmes against action from WTO members in case the subsidy ceilings—10% of value of food production in the case of India and other developing countries—are breached.

 

India, Indonesia, South Africa and China are among the 80 WTO member countries that have called for initiating text-based negotiations to find a permanent solution on public stockholding (PSH) for food security. Developing countries and the African Group have demanded a food security package at the 2024 conference.

 

Their joint proposal represents 6.6 billion people and more than 80% of the global population.

India’s overall oilmeal exports rose 19 per cent on a yearly basis during the first quarter of the financial year 2023-24 to 1.21 million tonne, data put out by The Solvent Extractors’ Association of India (SEA) showed. In June, exports were, however, 35 per cent lower.

 

In the same quarter of 2022, the total oilmeal exports were 1.01 million tonne. 

 

To address concerns over rising food prices and promote fair competition within the agricultural industry, the U.S. Department of Agriculture (USDA) has announced plans to collaborate with 31 states and the District of Columbia. The goal is to target price-fixing practices and anticompetitive behavior that have been adversely affecting farmers and consumers alike.

 

On Wednesday, the USDA revealed its strategy, which includes working with attorneys from both political parties to enforce laws against price-fixing and the consolidation of businesses. This move comes after months of farmers expressing dissatisfaction with low prices for their products and unfair contracts with major buyers and processors in the agriculture sector.

 

Agriculture Secretary Tom Vilsack issued a statement in which he emphasized the importance of creating a more robust and competitive agricultural sector. To achieve this, the USDA aims to shed light on anticompetitive activities, including price gouging, which occurs when sellers demand unfairly high prices during times of increased demand.

 

In addition to addressing current concerns, the USDA also plans to implement new research programs to study the root causes of price fluctuations and anti-competitive practices. By better understanding the underlying issues, the department hopes to develop more effective solutions and regulations.

 

The USDA's efforts extend beyond addressing unfair pricing practices. The department is also set to finalize new rules under the Packers and Stockyards Act, which aims to protect livestock, meat, and poultry industries from unfair trade and monopolistic business practices. These changes seek to ensure a level playing field for all stakeholders involved.

 

In line with President Joe Biden's executive order supporting competition in the American economy, the USDA's new initiatives are part of a broader 'whole-of-government' competition policy. The administration seeks to create a fair and competitive economic landscape that benefits both producers and consumers.

 

Furthermore, the USDA plans to allocate funds to expand the meat and poultry industries, with the goal of increasing processing choices available to farmers who raise animals. By diversifying the options available, farmers can have more control over their products and mitigate the influence of dominant market players.