With regard to the upcoming World Food India-2023, an investor roundtable interaction was co-chaired by the Secretary, Department for Promotion of Industry and Internal Trade (DPIIT), and the Secretary, Ministry of Food Processing Industries, with agri-food processing companies in New Delhi, recently. The roundtable witnessed participation from the leading global and Indian food processing companies. During the interaction, the future plans of the participating companies and their prospects of partnerships with MoFPI for the WFI-2023, being organised from November 3-5, 2023, at Pragati Maidan, New Delhi, were discussed.

 

In his special address, Secretary, DPIIT, emphasised on the importance of manufacturing sector in the growing Indian GDP. He also mentioned the favourable agro-climatic zones in India which are not just suitable for production of a wide variety of agri-commodities like cereals, pulses, fruits and vegetables but also to process them in large quantities.

 

In her keynote address, Secretary, MoFPI, mentioned about the growth and vast opportunities present in the food processing sector. She added that the ministry is organising the second edition of the highly anticipated World Food India event, envisioning an even larger scale compared to the previous 2017 edition. The Secretary extended a heartfelt invitation to all companies to participate in the event with great enthusiasm.

 

During the roundtable, the participating companies expressed their optimistic outlook on the Indian market and lauded the various initiatives taken by the Government of India to improve the business environment, including the favourable policies such as the Production Linked Incentive Scheme and the flagship Pradhan Mantri Kisan Sampada Yojana initiated by MoFPI. The companies also expressed their interest in participating in World Food India-2023 and affirmed their willingness to sponsor the event and showcase their products and technologies through dedicated stall spaces. Many companies also showed keen interest on partnering with MoFPI for the sessions that are being planned as part of the event.

 

In his closing remarks, Additional Secretary, MoFPI, mentioned that the Investment Facilitation Cell (Invest India) and event partner FICCI will stay in touch with the companies to firm up the participation details. EY is roped in as the knowledge partner for the event.

The government is going to cut the tender submission period for the import of rice in a bid to ensure food security in the country.

 

The Ministry of Food has sent a proposal to the Cabinet Committee on Economic Affairs to shorten the period from existing 42 days to 15 days.

 

According to sources in the ministry, 500,000 metric tons of rice will be procured from international sources in the current financial year by reducing the import period. A proposal in this regard from the Ministry of Food will be presented in the next meeting of the Cabinet Committee on Economic Affairs for approval.

 

To ensure food security in the country, the government has set a target to collect 24 lakh 61 thousand metric tons of rice in the current financial year 2023-2024. Out of this, 19 lakh 61 thousand metric tons of rice will be purchased from domestic sources and 5 lakh metric tons of rice from international sources. Among international sources, there is a plan to import 3 lakh metric tons of rice from the Government-to-Government (G-to-G) level and 2 lakh metric tons through international tenders.

The Food and Agriculture Organization of the United Nations (FAO) released its latest Cereal Supply and Demand Brief, predicting a record-breaking global cereal production for the year 2023/24. The report indicates that cereal production is projected to reach 2,819 million tonnes, representing a 1.1 percent increase from the previous year.

 

The improved forecast primarily stems from a positive outlook for global wheat production, which is now estimated at 783.3 million tonnes. Several countries, including Canada, Kazakhstan, and Turkiye, are expected to contribute to this boost in production. However, it is worth noting that global wheat production is still anticipated to be 2.3 percent lower than the previous season's output.

 

The forecast also reveals a growth of 2.9 percent in global coarse grain output, expected to reach 1,512 million tonnes in 2023/24 compared to 2022. Additionally, world rice production is predicted to rise by 1.2 percent, reaching 523.7 million tonnes, surpassing the reduced level of the previous year. The upcoming season is expected to witness a 0.9 percent expansion in world cereal utilization, reaching 2,805 million tonnes. This increase is primarily driven by the anticipated higher consumption of coarse grains, especially maize, for animal feed.

 

FAO has revised its forecast for global cereal stocks at the end of the 2023/24 seasons, estimating them to be 878 million tonnes, a 2.3 percent increase from the previous season. With this level of stocks, the global cereal stocks-to-use ratio is expected to remain steady at 30.6 percent, indicating comfortable supply prospects for the new season.

 

Regarding world trade in cereals, FAO's forecast for 2023/24 suggests a potential 0.9 percent contraction compared to 2022/23, with wheat volumes expected to decline from the record levels previously witnessed. The global situation is not without challenges, as high food prices, economic downturns, conflicts, droughts, and the looming threat of El Niño weather patterns in various regions continue to worsen food security concerns. The latest Crop Prospects and Food Situation report, a quarterly publication by FAO's Global Information and Early Warning System (GIEWS), reveals that a total of 45 countries require external assistance for food.

 

The report highlights that high domestic food prices, which deviate from the FAO Food Price Index, are contributing to alarming levels of hunger in most of these 45 countries. Among them, 33 are located in Africa, 9 in Asia, and Haiti, Ukraine, and Venezuela.

 

Although global cereal production is projected to expand by 1.1 percent in 2023 compared to the previous year, the report warns of a contraction in the group of 44 Low-Income Food-Deficit Countries (LIFDCs). This contraction will increase their import needs to meet domestic food requirements.

 

The quarterly report by FAO not only offers detailed information about food insecurity and price trends on the ground in affected countries but also provides an in-depth assessment of regional production and trade prospects worldwide.

One District One Product (ODOP) programme under Department for Promotion of Industry and Internal Trade (DPIIT), Ministry of Commerce & Industry collaborated with an e-commerce player, Groyyo to onboard aggregators selling ODOP-identified products on its platform consisting of several categories such as home textiles, home décor etc. This collaboration launch was held on 3rd July, 2023.

 

The tagging on this one-stop online platform is intended to strengthen each district’s identity, while giving a greater visibility to ODOP products. This brings an opportunity for the sellers to learn more about product requirements from the buyers and make their products marketable at the global level. 

 

On the occasion, Smt. Supriya Devasthali, Director, DPIIT, highlighted the importance of such engagements to enable artisans to tap a larger customer base. She expressed that the government encourages entrepreneurship, and creativity, fostering a favourable ecosystem for artisans to thrive, through such collaborations.

 

A diverse collection of artisanal products representing different parts of the country such as ceramics from Bulandshahr in UP, coconut products from Kozhikode in Kerala, kani shawls from Budgam, J&K, bell metal craft from Bastar, Chhattisgarh have already been onboarded on this platform. Going forward, the categories available on this portal will be expanded to wellness, jewellery, etc. 

 

Currently, ODOP has joined forces with 35+ brands, covering around 100 districts of the country. The team’s vision is to bring more aggregators under this campaign to enhance product accessibility and visibility.

 

ODOP Programme is aimed at creating sustainable employment at the district level while promoting holistic socio-economic development. The idea is to select, brand, and promote one product from each district of the country.   

 

In pursuance of Atmanirbhar Bharat and India’s current G20 Presidency, several initiatives are being undertaken by DPIIT, Government of India. Union Minister of Commerce & Industry, Consumer Affairs, Food & Public Distribution and Textiles, Shri Piyush Goyal at the launch of the ODOP Catalogue, requested every organisation to work in collaboration with the programme. This will help promote the indigenous products from each district of the nation.

 

ODOP identified products can be accessed here: https://www.stylomania.in/pages/odop.

External Affairs Minister S Jaishankar on Saturday said that India and Tanzania have started trade settlements in local currencies and this new initiative will help in promoting commerce between the two countries. Addressing industry leaders at a function, the minister said India-Tanzania bilateral trade has seen very strong growth, and stood at USD 6.4 billion in 2022-23.

 

'Now, bear in mind, this is not only a very substantial bilateral trade, but it's also actually a bilateral trade, which is getting increasingly balanced. Many new products are being added to the trade basket...India remains the biggest destination for Tanzanian exports,' he said.

 

There's also an issue which has been brought up from time to time, which is the possibility of trade settlements in our own currencies, Jaishankar said.

 

'And I want to share with you that the India central bank has cleared such a possibility. So the three Indian banks, which are here, have that ability to do trade settlements in each other's currencies.

 

'I am told few transactions have already taken place in Indian rupees and Tanzanian shillings, and certainly this will provide an additional mechanism to promote trade between our two countries,' he said.

 

Bank of India, Bank of Baroda, and Canara Bank have operations in Tanzania.

 

Last year, the Reserve Bank of India and Indian finance ministry asked the top management of banks and representatives of trade bodies to push export and import transactions in rupee. They want banks in India to connect with their foreign counterparts for opening special rupee vostro accounts to facilitate cross-border trade in the Indian currency rather than the popular mode of the US dollar.

 

About 18 countries have already opened special vostro accounts with Indian banks.

 

On India-Africa economic ties, the minister said India's trade is USD 98 billion with Africa.

 

'India's investments are USD 75 billion, and we are expecting both this trade with Africa and investments in Africa to grow, and I certainly, so agree with what you said, which is that now that there is a pan-African larger continental free trade arrangement in the making, as it unfolds, I think it makes it easier to both trade with Africa and invest in Africa,' he said.

 

Jaishankar also stressed on frequent exchanges of business delegations to promote economic cooperation between the two countries.

 

He noted that in 2022, eight big exhibitions in different sectors took place in Tanzania.

 

Earlier in the day, Jaishankar inaugurated a bust of Swami Vivekananda at India's cultural centre in Dar es Salaam.

Commerce and industry minister Piyush Goyal will visit the UK on July 10-11 to take stock of the negotiations for a free trade agreement (FTA) and review the progress of the talks for a similar pact with the European Free Trade Association (EFTA), the government said Sunday.

 

'The minister’s visit will not only be focused on the ongoing FTA negotiations between India and the UK but he will also be meeting with ministers from the EFTA member countries to discuss the progress of the Trade and Economic Partnership Agreement (TEPA) with EFTA,' the commerce and industry ministry said in a statement.

 

As per the statement, the visit comes at a crucial juncture, as both India and the UK are committed to expanding their economic ties and exploring avenues for enhanced bilateral trade.

 

'With the FTA negotiations gaining momentum, the visit aims to further propel the discussions and pave the way for a comprehensive and mutually beneficial agreement that would drive economic growth and strengthen ties between the two nations,' it said.

 

During the visit, the minister will engage in high-level meetings with his UK counterparts, including the Secretary of State for International Trade, as well as representatives from various sectors and industries.

 

'These meetings will provide an opportunity to discuss the key priorities and objectives of the FTA negotiations, with a focus on addressing trade barriers, promoting investments, and fostering greater cooperation in areas such as technology, innovation, and intellectual property rights,' it said.

 

India and the UK have completed ten rounds of talks and the pact will cover 26 policy areas. Investment is being negotiated as a separate agreement but both would get simultaneously concluded.

 

The bilateral trade between the countries increased to $20.36 billion in FY23 from $17.5 billion in FY22.

 

Goyal will also meet with ministers and officials from the EFTA member countries- Switzerland, Norway, Iceland, and Liechtenstein- to assess the progress made in the ongoing negotiations of the

TEPA which aims to enhance trade and economic cooperation, fostering an environment conducive to increased investments, reduced trade barriers, and greater market access, according to the statement.

Prices of rice exported from top hub India extended their rally to a fresh five-year peak this week on supply concerns, while strong demand kept Thailand and Vietnam rates near two-year highs.

 

India’s 5% broken parboiled variety was quoted at $412 to $420 per tonne, up from $409-$416 last week.

 

Demand has been moderating at higher levels, but prices were still rising due to limited supplies and the hike in government procurement prices, said a Mumbai-based exporter.

 

Global prices, now at their highest in 11 years, were set to rally further after top exporter India moved to boost farmer payments, just as El Nino threatens yields in key producers.

 

Vietnam’s 5% broken rice was offered at $500-$510 per tonnes on Thursday, unchanged from last week.

 

'Demand is strong and exporters are rushing to purchase paddy from farmers for their export contracts,' a trader based in Ho Chi Minh City said, adding global demand could stay elevated until the end of the year.

 

A senior official of the Vietnam Food Association said the country’s rice exports this year will exceed 6.5 million tonnes, but remain below last year’s 7.1 million tonnes.

 

Preliminary shipping data showed 95,200 tonnes were set to be loaded at Ho Chi Minh City port in the July 1-12 period, with most of the rice heading to Africa, Indonesia and the Philippines.

 

Thailand’s 5% broken rice prices were unchanged at $515 per tonne.

 

The prices stayed high due to strong demand from Indonesia, the Philippines, Malaysia and some African nations as drought concerns prompted them to stock up, a Bangkok-based trader said.

 

Bangladesh’s rice output from the summer crop will exceed the target of 21.5 million tonnes this year, agriculture ministry officials said.

 

Dhaka has been trying to rein in domestic prices of the staple that have continued to soar despite good yield and reserves.

India is working on an advance cargo information system on the lines of the advance passenger information system put in place by the US after 9/11 that will allow immediate customs clearance of imports with scrutiny limited to a risk-based assessment of shipments.

 

Such a system would allow customs authorities to know beforehand the contents and arrival time of cargo. The information can then be used to pre-clear the consignments or keep them for further checks based on the contents and the information thrown up by the risk-assessment system.

 

Various agencies that are involved in vetting import cargo such as plant quarantine can also carry out their checks on the basis of data.

 

A pilot to test pre-arrival cargo data exchange is already on with the Maldives and discussions are now on with countries including South Korea to expand this system. New Delhi has already inked an agreement for the pre-arrival exchange of country-of-origin certificates with South Korea.

 

'Pre-arrival data exchange is being examined,' a senior government official told ET.

 

Such an exchange could become part of future trade agreement talks.

 

The Central Board of Indirect Taxes and Customs is working on the initiative as part of customs facilitation to further improve the ease of doing business in the country. Pre-arrival data exchange could form part of a future revamp of the country's customs framework to boost trade facilitation.

 

Such a system is expected to not just aid expeditious identification and tracking of suspicious goods but also come in handy in verification of country-of-origin certificates with countries with whom India has a trade agreement.

With regard to the upcoming World Food India-2023, an investor roundtable interaction was co-chaired by the Secretary, Department for Promotion of Industry and Internal Trade (DPIIT), and the Secretary, Ministry of Food Processing Industries with agri-food processing companies in New Delhi, yesterday. The roundtable witnessed participation from the leading global and Indian food processing companies. During the interaction, the future plans of the participating companies and their prospects of partnerships with MoFPI for the WFI-2023, being organized from 3-5 November, 2023 at Pragati Maidan, New Delhi, were discussed.

 

In his special address, Secretary, DPIIT emphasized on the importance of manufacturing sector in the growing Indian GDP. He also mentioned the favourable agro-climatic zones in India which are not just suitable for production of a wide variety of agri-commodities like cereals, pulses, fruits, vegetables etc., but also to process them in large quantities.

 

In her keynote address, Secretary, MoFPI mentioned about the growth and vast opportunities present in the food-processing sector. She added that the ministry is organizing the 2nd edition of the highly anticipated World Food India event, envisioning an even larger scale compared to the previous 2017 edition. The Secretary extended a heartfelt invitation to all companies to participate in the event with great enthusiasm.

 

During the roundtable, the participating companies expressed their optimistic outlook on the Indian market and lauded the various initiatives taken by the Government of India to improve the business environment, including the favourable policies such as the Production Linked Incentive Scheme and the flagship Pradhan Mantri Kisan Sampada Yojana initiated by MoFPI. The companies also expressed their interest in participating in World Food India-2023 and affirmed their willingness to sponsor the event and showcase their products and technologies through dedicated stall spaces. Many companies also showed keen interest on partnering with MoFPI for the sessions that are being planned as part of the event.

 

In his closing remarks, Additional Secretary, MoFPI mentioned that the Investment Facilitation Cell (Invest India) and event partner FICCI will stay in touch with the companies to firm up the participation details. EY is roped in as the knowledge partner for the event.

 

The grain diplomacy will help position India as a key player in global food security space, which currently is facing acute challenges due the shifts in geopolitics and the Russia-Ukraine war.

 

India has also sent food grains to other countries such as Sri Lanka, Bangladesh, Maldives, Israel, Indonesia, Malaysia among others.

 

With monsoons now covering almost the entire country, concerns over a possible El Nino situation have somewhat eased. However, the delay has led to significant rise in food prices in India. Challenges related to climate change have been rising not just in India and South Asia but the world over. This has also caused worries over global food supplies.

 

More than 60 per cent of the rice sowing in India, which supplies about 40 per cent of the global rice requirement, takes place during the Kharif season which commences with the onset of the monsoon and harvested around November. The remaining production of rice takes place during the Rabi cycle in the winter months.

 

Last month Prime Minister Narendra Modi addressing the G20 Agriculture Ministers’ summit said that India will not only be the voice of the Global South but was ready to play a crucial role in maintaining global food security amid rising climate risks while taking a lead role in charting out new dynamics.

 

India, the largest exporter of rice in the world, has been actively providing food grains to several vulnerable countries as part of its humanitarian assistance programme.

 

In the July to June period of 2022-23– the country’s crop year, food grain production rose 5 per cent to a record 330.53 million tonnes driven by increased output of rice and wheat.