THE office of the United States Trade Representative (USTR) announced recently that the US and India had reached an agreement to terminate ongoing disputes at the World Trade Organisation (WTO), including a fight over the then President Donald Trump’s tariffs on steel and aluminium and India’s retaliatory duties. India agreed to remove retaliatory tariffs implemented against certain US products in response to America’s institution of tariffs on steel and aluminium in 2018 under Section 232 of the 1962 Trade Expansion Act.

 

The six WTO disputes to be terminated are: from the US side — countervailing measures on certain hot-rolled carbon steel flat products from India, measures related to renewable energy sector, measures on steel and aluminium products; and from India’s side — measures related to solar cells and solar modules, export-related measures and additional duties on certain products from the US.

 

However, while the countries have agreed to terminate the outstanding disputes at the WTO, the US did not take the next step of exempting India from Section 232 tariffs. Indeed, the USTR statement highlighted the success of the negotiations while explicitly stating, 'The resolution maintains the integrity of the US 232 measures.' According to the terms of the resolution, the US will continue to monitor the efficacy of the Section 232 tariffs against India and keep processing exemptions to the tariffs, consistent with past practices.

 

'We have decided to resolve long-pending trade-related issues and make a new beginning,' Prime Minister Narendra Modi said at a joint news conference with President Joe Biden following their White House meeting.

 

The agreements are a surprising development after National Security Council spokesperson John Kirby told mediapersons at a press briefing earlier not to expect 'a specific resolution on trade issues coming out of these next few days'.

 

In fact, India has agreed to remove retaliatory tariffs on certain US products, including chickpeas, lentils, almonds, walnuts, apples, boric acid and diagnostic reagents, which it imposed after Trump slapped duties on steel and aluminium imports.

 

'Today’s agreement represents the culmination of intensified bilateral engagement over the last two years, including through the US-India Trade Policy Forum, to deepen our economic and trade ties,' US Trade Representative Katherine Tai said in a statement. 'As a result of our work, US agricultural producers and manufacturers will now enjoy renewed access to a critical global market, and we will strengthen our trade relationship with one of our closest partners,' she added.

 

The USTR remark on maintaining the integrity of the Section 232 measures means that India agreed to lift its trade retaliation without the US altering the steel and aluminium tariffs that Trump imposed, a USTR spokesperson said.

 

In addition to the two cases related to Trump’s tariffs, both nations also agreed to terminate four other WTO disputes — two each had been filed by India and the US. That still leaves one filed by the US in 2012 challenging India’s poultry trade barriers. However, a former US trade official said talks on that issue were continuing and a deal was still possible.

 

The two other cases terminated by the US are a 2018 complaint against Indian export subsidies and a 2013 complaint against Indian domestic content requirements for solar cells.

 

India terminated a 2016 complaint against state-level subsidies and domestic content requirements for renewable energy and a 2012 complaint over US countervailing duties on certain steel products.

 

The statement issued by Biden and Modi also highlighted India’s interest in being reinstated in the US Generalised System of Preferences (GSP) programme, which waives US import duties on thousands of goods from developing countries.

 

Trump kicked India out of the programme in 2019, saying that New Delhi did not provide sufficient market access to American goods. Biden and Modi agreed to intensify work on issues related to India’s eligibility criteria, the joint statement said.

 

The leaders also welcomed the initiation of talks on government procurement issues. That could lead to India’s designation as a ‘Trade Agreements Act’ country, which would help its companies compete for US government procurement contracts.

 

In another trade area, Biden reiterated his administration’s commitment to work with the US Congress to lower barriers to the export of high-performance computing technology and source code to India.

 

Biden also invited Modi to attend as a guest the annual Asia-Pacific Economic Cooperation summit, which the US is hosting in San Francisco in November. India is not a member of the 21-economy group, but had expressed interest in joining it in the past. Biden is expected to travel to India in September for the G20 leaders’ summit, which New Delhi is hosting.

 

Politico had reported that there could be a package of agreements to resolve the WTO disputes. But Kirby dismissed that possibility. 'That’s not what this is about,' he said of Modi’s White House visit. 'This is really about the strategic nature of the relationship and driving it forward.'

 

That ran against a previous pledge by Tai and Indian Commerce Minister Piyush Goyal, issued in January, to try to resolve the WTO disagreements in the coming months. Tai and Goyal recently held a virtual meeting to discuss bilateral trade concerns.

 

In future also, there is no need to knock the door of the WTO to resolve trade disputes between the two countries. Both can amicably resolve their trade disputes because the mutual understanding between them has enhanced bilateral trust.

The Agricultural and Processed Food Products Export Development Authority (APEDA) is looking forward to the expansion of the Lal Bahadur Shastri Interntional airport here, at the earliest. APEDA deputy general manager C B Singh said, 'Movement of perishable cargo is increasing by the day from this airport. Varanasi airport handled 561 metric ton of perishable cargo during 2022-23 financial year. 

Exports of fresh fruits, vegetables and cereals from east UP recorded a growth of 420% in 2022-23. In the first quarter of the current financial year (April- June), the Varanasi airport handled 160MT of agri cargo as compared to 46MT during the first quarter of 2022-23. It is 248 % higher than previous year’s first quarter.'

 

The cargo space of Varanasi-Sharjah goes full to capacity everyday, he said, adding, this flight gives direct connectivity to the Gulf market, while for London and other international markets the Farmer Producers Organisations (FPO) and exporters from east UP region are bound to opt for trans-shipment in which domestic flights take freight to Delhi or Mumbai for further transportation.

 

'Currently, very few airlines have trans-shipment bond for international cargo, including Indigo and Air India Express, while Air India, Vistara etc have not applied for trans-shipment bond,'he said, adding that to maintain this momentum of agri export from east UP region not only more trans-shipment bonds with more airlines but also increased frequency of international flights and operation of cargo flights are required.

NITI Aayog has called for a paradigm shift in approach towards agriculture with focus on liberalization of the sector and changes in the old regulations governing it to ensure significant and sustained increase in farmers’ income.

 

'Advancement in science-led technology, an enhanced role for the private sector in both pre and post-harvest phases, liberalised output markets, an active land lease market, and emphasis on efficiency will equip agriculture to address the challenges of the twenty-first century and contribute towards the goal of Viksit Bharat,' NITI Aayog member Ramesh Chand said in his working paper, co-authored with Jaspal Singh, a consultant at the Aayog.

 

Elaborating on the need to liberalise the sectors, the paper has proposed providing a facilitating regulatory environment and responsible public and private investments in and for agriculture.

 

'This will enable introduction and promotion of knowledge and skill intensive practices within agriculture, private and corporate sector investments in agriculture, new institutions of producers, integrated food system-based mechanisms, and new types of linkages between producers and end users, which in turn will lead to modernisation of the sector,' the paper said.

 

Identifying lack of efficiency as a bottleneck in the growth of the sector, the paper recommends a shift in emphasis from growth to efficient growth which means a cost effective increase in production.

 

'This requires deployment of state-of-the-art technology in agriculture, smart farming and maximising the value of main and by-products,' it said.

 

Further, it proposes to introduce a system of competition among states to improve 'ease of doing farming and farm business'.

 

According to the paper, agriculture will play a key role in India in achieving the goal of Viksit Bharat, inclusive development, green growth and gainful employment during Amrit Kaal.

 

In addition, the United Nations’ Sustainable Development Agenda 2030 cannot be achieved without paying attention to agriculture, as 11 out of the 17 Sustainable Development Goals (SDGs) are directly linked to agriculture, it said.

 

Cautioning that the instrument of minimum support price (MSP) should not cause distortions in market signals, the paper suggests that India should use a combination of two instruments, namely procurement and price deficiency payment, to pay MSP to farmers.

 

'Public procurement should be linked to the quantity needed for the public distribution system, price stability and strategic stocks. Other than this, MSP in mandated crops should be implemented through price deficiency payment,' it added.

After the successful completion of two Trade and Investment Working Group (TIWG) meetings, the 3rd meeting will take place from 10th–12th July 2023 in Kevadia, Gujarat. The three-day meeting will be attended by more than 75 delegates from G20 member countries, invitee countries, regional groupings and international organisations. The focus of the meeting would be to build consensus on accomplishing action-oriented proposals put forward by the Indian Presidency on global trade and investment-related issues.

 

On the first day, a seminar on Trade Infrastructure will discuss the Role of Logistics in Expanding Global Value Chains (GVCs) and MSMEs Going Global: Integration with GVCs. The seminar will be followed by a guided tour of the Statue of Unity and a dinner hosted by the State Government for the G20 delegates. 

 

The five priority issues namely (i) Trade for Growth & Prosperity, (ii) Resilient Trade and GVCs, (iii) Integrating MSMEs in World Trade, (iv) Logistics for Trade and (v) WTO Reforms were extensively discussed among the G20 member/invitee countries during the first and second TIWG meetings. Moreover, presentations outlining each of the subjects and outcomes emanating from them were made by the Knowledge Partners during these meetings. Based on the opinions/suggestions expressed by the G20 member/invitee countries in these discussions, Indian Presidency has formulated action-oriented concrete proposals on each of the priority issues. 

 

These proposals relate to developing High-Level Principles for Digitalization of Trade Documents, Action Plan to Create Meta Information Interface for MSMEs, Generic mapping framework for GVCs, G20 Regulatory Dialogue and preparing a Compendium on best practices for Mutual Recognition Agreements (MRAs). In this backdrop, during the third meeting, the Presidency is now striving for consensus-building among the G20 member countries for eventual adoption of these proposals.

 

Accordingly, on 11th & 12th July, technical sessions will be conducted during which specific inputs/comments of the G20 member/invitee countries will be solicited on the Presidency’s proposals. These inputs will be suitably incorporated while drafting the Ministerial Communique which will be adopted during the G20 Trade and Investment Ministerial Meeting scheduled at Jaipur from 24th to 25th August, 2023.

 

The working agenda has been prepared keeping in mind the clarion call given by the Prime Minister, Shri Narendra Modi that the G20 outcomes should be action-oriented and address the challenges faced by the Global South. In this backdrop, the outcomes from the 3rd TIWG Meeting would pave the way for building a shared understanding of the challenges being faced in accelerating global trade and investment, and develop tools that could leverage existing opportunities to make growth inclusive and transparent.

India's export of spices in the year ended March declined 8.3% on year to 1.4 million ton, according to data from the Spices Board India. However, in value terms, exports rose 4.7% to Rs 317.6 billion in 2022-23. While exports of most spices fell, those that registered a rise included turmeric, garlic and coriander.

 

Garlic exports rose 159% on year to 57,346 ton in 2022-23. Exports of cumin declined 14% on year to 186,509 ton in 2022- 23, while turmeric exports rose 11% on year to 170,085 ton. India exported 54,482 ton of coriander in 2022-23, up 12%, the data showed.

 

Exports of small cardamom declined 30% on year to 7,352 ton and large cardamom fell 5% on year to 1,884 tn. Exports of chilli in 2022-23 declined 7% on year at 516,185 ton, while pepper fell 18% to 17,958 ton.

Japan's former Prime Minister Yoshihide Suga is leading a 100-member trade delegation to India to look at ways to boost investments in the country to reach their target of 5 trillion yen by 2027.

 

He met Prime Minister Modi along with the Ganesha group of Japanese MPs and Keidanren (Japanese Business Federation) CEOs.

 

'We had an engaging discussion on deepening our Special Strategic and Global Partnership in different areas, including Parliamentary exchanges, investment, economic ties, people to people links tourism and skill development,' said PM Modi.

 

Suga expressed optimism of enhanced investment in India as it is now the world’s fifth largest economy and is growing rapidly at a rate of 7.2 per cent.

 

'In Japan, the public and private sectors are in complete agreement on the importance of strengthening relations with India. Last year, the government of Japan had set a target of investing Yen 5 trillion in India over the next five years. I have witnessed India’s liveliness and was able to feel the momentum of the Indian economy,' said Suga who is also the President of the Japan-India Association.

 

India is upbeat about its growing partnership with Japan. 'As India embarks of its next phase of economic growth, improvement in agriculture productivity will be a key aspect and use of technology can provide the necessary breakthrough. Japan is a leading country in many areas of agriculture including precision farming, seed R&D, introduction of new molecules for crop protection, drones etc. This is a win-win opportunity for Japanese companies to tap the vast Indian market by introducing cutting edge products and services tailored for the Indian farmers,' Ajay S Shriram, CMD of DCM Shriram, told The New Indian Express.

 

Japan is a key global investor and player in supply chains, which are central to reshaping the future of global trade. India also plays an important part in this segment.

 

'The 5 trillion yen target can not just be achieved but also exceeded. One way of doing this would be through introducing mutual recognition agreements across various sectors in both countries and focus on resilient supply chains,' Bharat Joshi, Director Associated Container Terminals Limited (ACTL), told The New Indian Express.

 

Meanwhile, Suga is optimistic that strengthening economic ties and people to people exchanges with India will benefit both countries.

 

With robust trade ties between the two nations, the investment target will surely be achieved. Bilateral trade between the two nations was $20.57 billion in 2021-22.

Enthused by the massive response to two farmers’ varieties of jackfruit — iddu and Shankara — which were promoted by it, the Bengaluru-based Indian Institute of Horticultural Research (IIHR) has identified one more variety of jackfruit being grown by a farmer for promotion.

 

Its unique characteristic is that it is not only tasty and nutritious but also suitable for commercial processing for making products like jam, squash and fruit bar, said IIHR Director Sanjay Singh.

 

Unlike the earlier two varieties, whose fruits were small, the new one weighs 25 to 32 kg.

Unlike the earlier two varieties, whose fruits were small, the new one weighs 25 to 32 kg.

 

Heavier fruit

Unlike the earlier two, whose fruits were small, the new one weighs 25 to 32 kg, he said. It has been identified in the field of Nagaraj in Hessarghatta on Bengaluru’s outskirts. Presently there is only one such tree in his field.

 

Dr. Singh said IIHR scientists, who have been observing the tree for the last three years to study its characteristics, conducted tests to ascertain the nutritious value of the fruits from this variety.

 

 

It also gives fruit during the off season (August to October) which is a rare trait for jackfruit.

 

The new variety was identified in the field of Nagaraj in Hessarghatta on Bengaluru’s outskirts. Presently there is only one such tree in his field.

The new variety was identified in the field of Nagaraj in Hessarghatta on Bengaluru’s outskirts. Presently there is only one such tree in his field.

 

Registering the variety

The IIHR is helping the farmer to register his variety with the Protection of Plant Varieties and Farmers’ Rights Authority so that he will get exclusive rights over it. The farmer will become the custodian of this variety. After the completion of this process, the institution will enter into an MoU with the farmer to multiply the variety. This arrangement will bring financial benefits to the farmer as the IIHR will sell the saplings under its banner and provide 70% of proceeds to the farmer.

 

'This particular tree was planted 43 years ago by my father. Though we did not know its technical details, we knew it was attractive as there was a huge demand for its fruits, and people were willing to pay a premium to get this fruit,' said Mr. Nagaraj, who is an innovative farmer.

 

Fruit profiled

This fruit was noticed by scientist K.N. Jagadish, who is a subject specialist at the IIHR’s Krishi Vigyan Kendra in Hirehalli, Tumakuru. The IIHR scientists then conducted biochemical profile of the fruit.

 

The first such experiment by the IIHR to promote farmers’ variety by choosing the Siddu jackfruit was a success as the farmer has got a huge demand for its saplings which is helping him to earn handsome profits of over a crore just from a single tree.

In addition, the Aman variety of the fragrant Tulshimala rice from Sherpur has also acquired the GI tag, Md Zillur Rahman, deputy registrar (Trade Marks) of the Department of Patents, Designs and Trademarks (DPDT), said.

 

The department under the industries ministry issued GI certificates to the four products on 25 June.

 

With this, 15 Bangladeshi products, including Jamdani, Ilish, Muslin, Rajshahi silk, Rangpur's Shatranji, Kataribhog rice of Dinajpur and Fazli mango of Rajshahi and Chapainawabganj, have been recognised as GI products so far.

 

Bogura, often dubbed as the capital of yogurt, produces an average of 50 tonnes of yogurt per day in around 400 factories of various sizes. Demand for the fermented dairy product doubles during festivals like Eid.

 

Nurul Bashar Chandan of Asia Sweets, a leading name for yogurt in Bogura at present that produces around 1,000kg of yogurt per day, sees the GI certification as a great opportunity to boost the yogurt market.

 

'With GI recognition, we will get multifarious benefits in terms of exporting yogurt. But if the yogurt is to be taken to the world market, the cooperation of the government is very much needed,' he said.

 

'The GI recognition has established a distinct identity for Bogura yogurt in the world,' said Hasan Ali, chairman of reputed sweets and yogurts manufacturer Akbaria Group.

 

'Bogura city and Sherpur Upazila together sell at least one lakh pieces of yogurt, worth Tk1 crore, per day. The country can generate more revenue by exporting the product,' he added.

Valsad, in south Gujarat, is the mango capital of India, and its famed Alphonso mangoes, also called Valsadi Hapus, are on the brink of receiving the coveted Geographical Indication (GI) label, which is great news for mango fans and farmers.

 

This recognition will make Valsadi Hapus the second mango variety in Gujarat to receive the GI tag, following the famous Kesar mangoes cultivated in the foothills of Girnar mountains in Junagadh district. Nationally, Valsadi Hapus will be the third mango variety in India to receive GI registration, joining the ranks of ‘Gir Kesar’ and Dussheri mangoes.

 

The lush mango orchards surrounding Valsad district are well-known for their delectable Alphonso mangoes, which exude a captivating aroma and unmatched flavor. The Geographical Indications Registry of the Central government, based in Chennai, will bestow the GI tag upon Valsadi Hapus, thereby conferring a distinct identity to these mangoes in both the domestic and international markets.

 

DK Sharma, an official at the Navsari Agriculture University (NAU) in Pariya, Valsad, shared that the process for obtaining the GI registration of Valsadi Hapus is currently underway and is expected to be finalized within the next three months. The NAU’s Pariya campus has diligently addressed approximately 28 objections raised at the Chennai-based GI registry, demonstrating their commitment to securing this prestigious recognition from the Central Government.

 

In 2023, the southern region of Gujarat has emerged as the leading cultivator of mangoes among the state’s seven districts, surpassing Central and North Gujarat, Saurashtra, and Kutch. The mango cultivation area in South Gujarat spans approximately 98,672 hectares, with an impressive production volume of 5.73 lakh metric tonnes.

 

The GI tag serves as a testament to the unique characteristics and qualities of Valsadi Hapus mangoes, attributing their exceptional taste and aroma to the region’s specific environmental and geographical conditions. This recognition will not only enhance the mangoes’ market value but also protect them from imitations and counterfeits.

 

The GI-tagged Valsadi Hapus mangoes will offer consumers the assurance of authenticity and quality, boosting their demand in domestic and international markets. The recognition will also provide a significant boost to the local economy and contribute to the preservation of traditional agricultural practices in Valsad.

 

'The impending GI tag for Valsadi Hapus mangoes is a moment of pride for the farmers, traders, and mango enthusiasts who have long recognized the exceptional nature of these fruits. It is a testament to the rich agricultural heritage of Valsad and reaffirms the region’s status as a prime producer of superior mango varieties' said an Alphonso farmer in Vapi.

Indian rice exports were off to a good start in the current financial year with volume of shipments increasing by about a tenth in the first two months to over 3.67 million tonnes (mt) compared with 3.36 mt in the same period a year ago on strong demand for basmati rice.

 

Basmati rice shipments during this period were up 21 per cent at 8.30 lakh tonnes (lt) against 6.85 lt a year ago. Similarly, non-basmati rice shipments, despite curbs on broken rice and export duty, were up by 6 per cent at 2.84 mt against 2.67 mt.

 

Basmati shipments to West Asia, the main market for the aromatic rice registered an increase of 13 per cent at 6.15 lt against 5.43 lt a year ago on higher demand from countries such as Iran, Iraq, Kuwait, Qatar and United Arab Emirates. However, shipments to countries such as Saudi Arabia and Yemen declined. Exports in dollar terms to West Asia were up 22 per cent at $665 million ($545 million in the year-ago period).

 

Gain in other geographies

To other geographies such as European Union and Asian countries, basmati shipments more than doubled during these two months. Shipment volumes to the European Union were up 154 per cent at 41,644 tonnes (16,407 tonnes) on demand from the Netherlands, Germany, Italy and Belgium. The basmati export value to the EU during April-May was up 196 per cent at $52.61 million ($17.74 million). In Asia, countries such as Bangladesh, Bhutan and Nepal among others stepped up the purchase of the aromatic rice with volumes rising to 15,339 tonnes (6,995 tonnes).

 

Similarly, in the case of non-basmati rice, shipments to Africa during April-May were up at 20.96 lt (15.49 lt), while exports to West Asia recorded a 24 per cent growth at 2.20 lt (1.77 lt). 'There is a good demand. Despite certain restrictions, shipments are growing,' said B.V. Krishna Rao, President, The Rice Exporters Association. India has placed curbs on exports of 100 per cent broken rice and has levied a duty of 20 per cent on white and brown rice exports since September 8, 2022.