As the export of fresh fruits, vegetables and cereals from East UP has started booming with a record growth of 420% in 2022-23, the exporters as well as Agricultural and Processed Food Products Export Development Authority (APEDA) find that many challenges, especially of transportation, should be tackled on priority to maintain the tempo as the region has great potential for further increase in it.

'International flight is limited with freight capacity of 3 metric ton to 4 MT per day. This freight capacity is being fully utilised now hence, further increase in demand as well as production for exports will start posing serious challenges', APEDA deputy general manager CB Singh told TOI on the possibilities of further increase in export of agri products, especially green vegetable and fruits, from LBSI airport of Varanasi.

Only one Sharjah bound direct international flight operates per day from here. Only this flight gives direct connectivity to Gulf market while for London and other international markets the Farmer Producers Organisations (FPO) and exporters from east UP region are bound to opt transshipment in which domestic flights take freight to Delhi or Mumbai for further transportation.

Singh admitted, 'Currently less number of airlines have transshipment bond for international cargo. Airlines like Indigo and Air India Express have taken the transshipment bond while other airlines like Air India, Vistara etc have not applied for transshipment bond.'

 

To send the shipments to the Gulf and EU via sea route taking horticulture and agriculture products of east UP region to Mumbai port is a compulsion. The inland transportation cost from Varanasi or Lucknow, which are landlocked territory, is very high as compared to the transportation cost borne by FPOs and exporters sending from centres like Nasik, said Singh adding, due the same UP exporters are getting very tough competition.

 

The issue of transportation has emerged as a major cause of concern for the FPOs, exporters as well as APEDA because the East UP, which had nil export of agriculture and horticulture products from LBSI airport till year 2019 had exported only four MT of vegetables in 2020. But, in 2021-22 the export grew to 157 MT and in 2022-23 it jumped to 561 MT, recording a growth of 420%. In four years only around 20 FPOs got them registered as exporters and eight of them are exporting actively. Cultivators are also switching fast on export oriented farming and the production is increasing accordingly.

Basic infrastructure for supply chain- Integrated Pack House that was formally inaugurated by Prime Minister Narendra Modi on March 24, is also available now, said Singh, mentioning that these developments are going to give a mega boost to exports due to which now the focus is on tackling the same challenges on priority. Chief Minister Yogi Adityanath flagged off the consignments of mango and green chilly packed at this IPH on Monday.

Commerce and industry minister Piyush Goyal on Tuesday chaired the first cross- sectoral workshop on the 14 production-linked incentive (PLI) schemes to take feedback on the ambitious programme. Issues related to low disbursement and fund utilisation were also taken up, sources said.

 

Representatives from Dell, Foxconn, Nokia, sienna helathcare, biocon, Cipla, Tata motors, Mahindra & Mahindra, Samsung, ITC, Dabur and Tata Steel, among others attended the meeting besides Niti Aayog and various line ministries.

 

'Companies raised policy related issues and technical problems which the various departments clarified. Various line ministries were asked to resolve the issues of the beneficiaries of the scheme. The government will take them up at the appropriate levels,' said an official.

 

More than 150 people attended the meeting and there were five beneficiaries from each of the PLI scheme sectors.

 

The government took feedback from industry and other government departments on the challenges being faced by PLI beneficiaries.

 

'The next meeting is likely next quarter, in September end,' the official added.

 

While large scale electronics, telecom, pharmaceuticals, food processing, white goods, and auto and auto components have picked up, High Efficiency Solar PV Modules, Advance Chemistry Cell (ACC) Battery, Textile Products, and Specialty steel are lagging behind.

 

As per the Department for Promotion of Industry and Internal Trade (DPIIT), the government has paid Rs 2,874 crore to beneficiaries in eight sectors.

 

The five project-monitoring agencies (PMAs) -- Industrial Finance Corporation of India (IFCI), Small Industries Development Bank of India (Sidbi), Metallurgical and Engineering Consultants (MECON), Indian Renewable Energy Development Agency (IREDA), and Solar Energy Corporation of India (SECI) and various industry associations and export promotion councils also participated.

 

The Centre has allocated Rs 1.97 lakh crore for the 14 sectors, including telecom, textile, automobile, white goods, and pharmaceutical drugs.

India’s horticulture output is likely to have reached a record 350.87 million tonnes (mt) in the current crop year (July 2022-June 2023) as production of fruits, vegetables, spices and plantation crops increased significantly.

 

However, among the key essential items, onion and tomato production has been estimated a tad lower but potato output has been pegged higher. The output of all the horticulture products was 347.18 mt in 2021-22.

 

Releasing the first advance estimates of area and production for 2022-23 and final estimates of 2021-22, Union Agriculture Ministry on Monday said data have been compiled on the basis of information received from States and other government agencies.

 

Agriculture Minister Narendra Singh Tomar credited the hard work of farmers and expertise of agriculture scientists as well as the Centre’s policies for the record production.

 

According to data from the Agriculture Ministry, the area under horticulture has been rising and reached 28.28 million hectares (mh) in 2022-23 from 28.04 mh last year.

 

Upward revision

Experts said the gap is marginal in the first estimate compared with last year’s final estimate and there could be an upward revision in production in subsequent updates.

 

Onion production is estimated to be 31.1 mt this year, down from 31.69 mt in 2021-22, while tomato production is likely to be 20.62 mt against 20.69 mt. Potato output is expected to be higher at 59.74 mt compared with 56.18 mt last year.

 

Total production of vegetables has been pegged at 212.53 mt compared with 209.14 mt. Fruits production is seen at 107.75 mt this year as against 107.51 mt in 2021-22.

Assam has launched a Rs 250 crore agricultural fund to boost agribusiness. In a bid to promote small and medium-sized units in the agriculture sector, multiple stakeholders, including the World Bank, have come together to create a fund worth Rs 250 crore in Assam, according to officials. The venture capital fund, Caspian Impact Investment Adviser, has partnered with the Assam Rural Infrastructure and Agricultural Services (ARIAS) Society to establish the Assam Agribusiness Investment Fund (AAIF).

 

The AAIF, with a corpus of Rs 250 crore, aims to provide a unique sector-specific fund that focuses on enhancing agricultural productivity and generating employment opportunities in the state. Its primary objective is to invest in small and medium enterprises operating in the agribusiness and allied sectors to foster accelerated growth. ARIAS has been designated as the anchor investor for the AAIF, while Caspian Equity will act as the fund manager.

 

Saurabh Johri, Executive Director and CEO of Caspian Impact Investment Adviser, expressed his delight at collaborating with ARIAS and their shared mission to catalyze the economic development of Assam's rural communities. By leveraging their investment expertise in conjunction with ARIAS' extensive knowledge and experience, the aim is to make a sustainable impact and empower individuals to thrive.

 

The fund will be led by Ravi Narasimham, Investment Director at Caspian, as the company looks forward to forging a strong partnership with ARIAS, with the ultimate goal of creating a prosperous and empowered rural community. Ashish Kumar Bhutani, Chairman of ARIAS Society, highlighted the uniqueness of the AAIF as a state-led initiative that seeks to address critical gaps in value chain finance within the agriculture and allied sectors while also increasing farmers' income.

 

The chairman expressed optimism that the fund would contribute to supporting high-growth and high-impact agribusiness SMEs, fostering vibrant and resilient agri-food value chains in Assam. Toshiaki Ono, Finance Sector Specialist at the World Bank Group, emphasized the crucial role of agribusiness SMEs in the transformation of the agriculture sector. However, he noted that external finance, particularly long-term and patient capital for their growth, remains limited.

 

Ono expressed confidence that the newly established fund would support these SMEs, facilitating their development and contributing to the establishment of vibrant and resilient agri-food value chains in Assam.

The FSSAI has extended the last date for filing annual returns for the fiscal 2022-23. The food authority has issued a direction in this regard stating that the last date for submission of annual returns, as per condition of licence, has been extended till June 30, 2023.  

 

The FSSAI has also reiterated that only online annual returns submitted through FoSCoS will be accepted.  

 

Meanwhile, welcoming the move, Confederation of All India Traders (CAIT) has said that the move would help traders.  

 

Shankar Thakkar, state general secretary, CAIT Maharashtra, has said that the traders would be relieved from fear of losing the FSSAI licence due to extension of the date, as pendency of annual returns would result into cancellation of the licence. And consequently, the packaging with old FSSAI licence would have been wasted.  

 

'Therefore, we had demanded that the food regulator to extend the date for filing of annual returns,' said Thakkar.  

 

It is pertinent to note that food manufacturers, repackers, re-labellers, packers and producers, needed to file annual returns to FSSAI through D1 form by May 31, 2023.  

 

According to CAIT, many traders could not file the annual returns and they appealed to the FSSAI for an extension.  

 

Subsequently, FSSAI extended the dates for the fiscal 2022-23 until June 30.

 

The Government has decided to release Tur from the national buffer in a calibrated and targeted manner till imported stocks arrive in the Indian market. The Department of Consumer Affairs, Ministry of Consumer Affairs, Food & Public Distribution has directed National Agricultural Cooperative Marketing Federation (NAFED) and National Cooperative Consumers Federation (NCCF) to dispose of Tur through online auction among eligible millers to augment the available stocks for milling into Tur Dal for the consumers.

 

The quantities being auctioned and the frequency will be calibrated on the basis of the assessed impact of the disposal on the availability of Tur to consumers at affordable prices.

 

It may be recalled that the Government had, on 2nd June, 2023, imposed stock limits on Tur and Urad by invoking the Essential Commodities Act, 1955 in order to prevent hoarding and unscrupulous speculation and also to improve affordability to the consumers. Under this order, stock limits have been prescribed for Tur and Urad until 31st October 2023 for all states and UTs.

 

Stock limits applicable to each of the pulses individually are 200 MT for wholesalers; 5 MT for retailers; 5 MT at each retail outlet and 200 MT at depot for big chain retailers; last 3 months of production or 25% of annual installed capacity, whichever is higher, for the millers. The order has also made it mandatory for these entities to declare the stock position on the portal (https://fcainfoweb.nic.in/psp) of the Department.

 

The implementation of stock limit order and status of stock disclosure on the portal are continuously monitored by the Department of Consumers Affairs and the State Governments. In this regard, data on stocks held by various entities in warehouses of Central Warehousing Corporation (CWC) and State Warehousing Corporations (SWCs), stocks pledged by market players with banks etc. have been crosschecked against the quantities declared on the stock disclosure portal.

 

The State Governments are continuously monitoring the prices in their respective States and are verifying the stock positions of stock-holding entities in order to take strict action on those who violated the stock limits order. 

The decision to remove 20 per cent retaliatory customs duty on imported American apples will have a 'zero' impact on Indian farmers as the government has sufficient policy space to support growers if there is any implication of the move, a senior government official said on Monday.

 

Additional Secretary in the Department of Commerce Peeyush Kumar said that India is not giving anything 'extra' by removing this duty and it was not that 'we have opened a floodgate' for American apples.

 

In fact, it is a win-win deal for India as it restores market access for domestic steel and aluminium products in the American market, which was impacted due to the imposition of high duties by the US in 2018.

 

The decision to remove these additional duties was part of an agreement reached between India and the US, during the recent visit of Prime Minister Narendra Modi to Washington and New York. India and the US have also agreed to terminate six trade disputes at the World Trade Organisation (WTO).

 

These remarks assume significance as Congress leader Jairam Ramesh in a tweet alleged that Prime Minister Narendra Modi 'wants Apple to invest (not investigate) in India. But does he even care for the apple growers of Himachal Pradesh? He has avenged his election loss in Himachal by slashing import duties on American apples. Never before has India seen a more petty PM!'

 

India will remove these duties on eight US products including chickpeas, lentils and apples, which were imposed in 2019 in response to America's measure to increase tariffs on certain steel and aluminium products.

 

India imposed retaliatory duties on 28 US products. America imposed an import duty of 25 per cent on steel products and 10 per cent on certain aluminium products on grounds of national security.

 

'There would be zero impact on Indian farmers due to the duty removal' because the import duty on apples still is at 50 per cent, Kumar told PTI.

 

Now India is also getting greater market access for its steel and aluminium products in the US, 'so it was not that, we are giving something extra,' he said.

 

Import of apples from the US decreased sharply from USD 145 million (127,908 tonnes) in 2018-19 to only USD 5.27 million (4,486 tonnes) in 2022-23. It indicates that the market share of the US apples was taken by other countries due to imposition of additional retaliatory duty on American apples, as the imports from countries other than the US increased from USD 160 million in 2018-19 to USD 290 million in 2022-23.

 

The US's import share in the import market segment was taken by countries like Turkey, Chile, New Zealand and Italy.

 

After the removal of additional duties on the US apples -- as a part of the resolution of a WTO dispute which would result in the restoration of market access for Indian steel and aluminum exports to the US -- would compete on level-playing field with other countries, while it does not result any additional negative impact on domestic apple producers.

 

Earlier the commerce ministry in May imposed MIP (minimum import price) of Rs 50 per kg on apples, except for Bhutan.

 

This MIP will be applicable on apples from the US as well as other countries (excluding Bhutan), which would prevent flooding and protect domestic growers from predatory pricing and poor-quality/ cheap imports.

 

'While Indian apple growers will continue to gain from the MFN duty and the MIP that was imposed for all countries except Bhutan, removal of additional duties for the US will result in competition in imports in the premium market segment ensuring better quality at better prices for consumers,' another official said.

 

There is no reduction on MFN (most favoured nation) duty on apples, which is still applicable on all imported apples including on the US at 50 per cent.

India has said the existing global trade rules do not adequately address market failures such as food hoarding and market speculation that drive up food prices and inflation during crises.

 

At a meeting of the Committee on Agriculture last week, India agreed with the 44-member African Group, which proposed to provide flexibilities to developing countries facing food insecurity crises to subsidise farmers beyond the minimal amount of subsidies allowed at the World Trade Organization (WTO), called ‘de minimis’ in trade parlance.

 

'India agreed that providing some flexibility to developing countries to exceed de minimis limits could be useful during a food insecurity crisis,' said a Geneva-based official, who did not wish to be identified. The de minimis level for India and developing countries is 10% of value of food production and 5% for developed countries.

 

'India also reiterated its stance on reducing aggregate measurement support beyond de minimis – which, at present, only 32 members are entitled to – before addressing other types of support,' said the official.

 

India, China and South Africa, along with five others, emphasised the urgency of starting text-based negotiations on the need to find a permanent solution on public stockholding for food security as soon as possible due to the limited time remaining before MC13, which is to be held next year.

 

The proposal, now supported by two-thirds of WTO members, should serve as the basis for negotiation, they argued and asked those opposing the proposal to refrain from repeating old questions. As per the proposal, a permanent solution for public stockholding should account for inflation and also be based on a recent reference price instead of an old one, which is based on 1986-88 prices.

 

India’s representative cited the country’s successful efforts to eliminate hunger domestically and provide food assistance to other countries such as Sri Lanka during the food crisis, as per the official.

Banarasi Langda mango with new GI tag, a product of Purvanchal soil, will fly directly from Kashi to UAE's Sharjah for which the Uttar Pradesh government has built a pack house in Varanasi.

 

Uttar Pradesh Chief Minister Yogi Adityanath will flag off a perishable food product prepared according to international standards and send it abroad for the first time.

 

'The government is working to remove middlemen from among farmer entrepreneurs and make them exporters. Due to this, the income of the farmers will be doubled. For this, the Agricultural and Processed Food Products Export Development Authority (APEDA) is making continuous efforts,' an official statement said on Saturday.

 

There will be single window clearance for export from the pack house.

 

Perishable food products will be prepared here according to international standards and the equipment engaged in integrated pack house for food and vegetable export are indigenous.

 

'The pack house is accredited by APEDA for export as per international standards,' it added.

 

Vegetables and fruits of Purvanchal will now be exported directly from the pack house of Varanasi.

 

The integrated pack house is well-equipped to handle exports by sea, land and air. Pack house has been completed in about 4461 square feet area at a cost of 15.78 crores.

 

Here farmer entrepreneurs will also be given training to prepare products according to the demand of the international market.

 

This will be the third integrated pack house in Uttar Pradesh's Varanasi after Saharanpur in Lucknow.

 

APEDA's Deputy General Manager Dr CB Singh said that for the first time flagged off by the Chief Minister from the pack house, 4 to 5 metric tonnes of Banarasi Langra mangoes will go to Sharjah from Varanasi Airport.

 

'30 to 35 metric tonnes of green chillies will be sent to Dubai and Doha via Mumbai via a 40 feet reefer container by a water vessel. Apart from this, preparations are on to send other products including okra,' he added.

 

Notably, the most important work of the pack house is to prepare the product according to international standards and as the different countries have different demands, the pack house works to meet their demand.

 

APEDA is active for export to double the income of farmers in Purvanchal.

 

'Fruits and vegetables have to go through many processes in the Integrated Pack House to prepare the product of international standard. Due to this, their freshness, taste and other properties remain intact. Special care is taken that these products do not contain pests or any kind of disease. The equipment engaged in Integrated Pack House for Food and Vegetable Export is indigenous. Especially, Banarasi Langda mangoes have to go through vapour heat and hot water treatment process, only then the Langda mangoes will be able to be sent abroad,' CB Singh said.

India and Australia plan to conclude negotiations for a comprehensive trade pact by December, a year after implementing the interim Economic Cooperation and Trade Agreement (ECTA), according to people aware of the matter.

 

When the ECTA was signed last year, it was decided that the larger idea would be to use the foundation of the interim deal to resume negotiations on the more ambitious trade deal or the Comprehensive Economic Cooperation Agreement (CECA). 

 

The new deal will include discussions on deeper market access and outcomes in five areas, including digital trade, goods, services, rules of origin, and government procurement and cooperation.

 

That apart, a broader trade agreement between India and Australia may include 15 new areas, such as competition policy for small businesses, gender, innovation, agri-tech, critical minerals, sports, and are currently under discussion. Both sides have had three rounds of negotiations. 

 

The fourth round is scheduled for next month. The deal with Australia is crucial since it is among the first developed nations to finalise a trade pact with India.

 

Under the ECTA, Australia has agreed to eliminate Customs duty immediately on 98.3 per cent of traded goods and on 100 per cent tariff lines over a period of five years. India, on the other hand, will do away with Customs duties on 40 per cent of products immediately and on 70.3 per cent of tariff lines over a period of 10 years.

 

During FY23, Australia was India’s 13th largest trading partner, with bilateral merchandise trade at $25.96 billion. India exported goods worth $6.95 billion, while imported goods worth $19.01 billion during the same time period.