Union Finance and Corporate Affairs Minister, Smt. Nirmala Sitharaman today chaired the 2nd meeting of the Apex Monitoring Authority constituted to review the activities of National Industrial Corridor Development and Implementation Trust (NICDIT). Union Minister of Commerce & Industry, Consumer Affairs, Food and Public Distribution & Textiles, Shri Piyush Goyal and Union Minister of Ports, Shipping and Waterways & Ministry of Ayush, Shri Sarbananda Sonowal also attended the meeting.

 

The Apex Monitoring Authority comprises of Finance Minister as Chairperson, Minister-in- charge, Ministry of Commerce & Industry, Minister of Railways, Minister of Road Transport & Highways, Minister of Shipping, Vice Chairman, NITI Aayog, and Chief Minister(s) of States concerned. Chief Ministers from four states, viz. Gujarat, Haryana, Uttarakhand, and Maharashtra; Ministers from 9 States viz. Bihar, Uttar Pradesh, Madhya Pradesh, Andhra Pradesh, Kerala, Punjab, Jharkhand, Karnataka, and Rajasthan besides senior officials from all the states attended the meeting.

 

Smt. Nirmala Sitharaman at the very outset, thanked the State Chief Ministers and Ministers for their continued support and cooperation in the development of NICDIT projects and appreciated the efforts made by the NICDIT team in the successful implementation of its projects.

 

She emphasized upon the need to ensure continued coordination between the Central and the State Governments and said they should work collectively as ‘Team India.’ Union Finance Minister stated that “FIRE Corridors = F – Freight; I – Industrial; R – Railways; E – Expressways” will ignite industrialization & economic development in India.

 

The Finance Minister stated that the rapidity with which the infrastructure is being developed since 2014 needs to be maintained. She urged the State Governments and NICDIT to maintain the same momentum for realizing the vision of Prime Minister Shri Narendra Modi of a Developed India by 2047. 

 

She urged all the States to tie up loose ends and move forward and resolve all pending issues through greater exchange and sharing of information to expedite the progress of works in the respective States.

 

Shri Piyush Goyal emphasized upon the financial viability of the projects. He urged the States for faster allotment of lands at reasonable rates. He stated that States should adopt innovative models and offer package deals etc. for faster investments. He said that electricity rates should be affordable and consistent as high rates of electricity are a deterrent to the industry.

 

Union Commerce and Industry Minister urged the State Governments to expedite acquisition of contiguous, litigation encumbrance free land and grant early environmental clearances for the NICDIT projects. He further stated that States should focus on expediting the finalization and execution of the Shareholders Agreements and State Support Agreements.

 

He directed NICDC to foreclose the projects where the State Government is not able to provide committed land in a time bound manner and to conceive projects in other states that are willing to offer land to expedite investments in their respective states.

 

He concluded by saying, India is making rapid strides towards Aatmnirbharta and continuous support from States will be the best contribution in this nation building process.

 

Shri Sarbananda Sonowal stated that the development of economic zones in and around ports may also be looked into. This was followed by a special address by Shri Suman K Bery, Vice Chairperson, NITI Aayog. 

 

The meeting started with a brief overview of the National Industrial Corridor Programme by the Secretary, DPIIT & Chairman, NICDC, Shri Rajesh Kumar Singh who talked about the status of land allotment and investment mobilized till date in his welcome address.

 

Smt. Sumita Dawra, Special Secretary- Logistics, DPIIT and CEO & MD, NICDC presented action taken on the directions of the 1st meeting and further spoke about the recent developments in the industrial corridor projects and gave a brief overview about the projects which are in the pipeline. During the presentation, she highlighted the adoption of PM’s GatiShakti National Master Plan in Industrial Corridor projects. Smt. Dawra also apprised that as per the directions of the Union Finance Minister in the previous meeting, Round Table Conferences, Roadshows & meetings with international associations are being organised at different places with the support of States & SPVs. 

 

Chief Ministers/Ministers of Industries/Senior Officials of the respective states spoke about the projects which are/or will be undertaken in their jurisdiction and the steps they are taking to ease the land allotment process and to give faster clearances. They assured that all possible support will be extended to the projects under NICDIT for early implementation on the ground.

 

The meeting proved to be a valuable platform for key stakeholders to discuss and exchange ideas on the progress, challenges, and future strategies related to the National Industrial Corridor Development Program. It presented an opportunity to align efforts, foster collaboration, and accelerate the development of industrial infrastructure across the country. Further steps to be taken into consideration for the advancement of the National Industrial Corridor Development Programme were the main points of discussion during the meeting of Apex Authority.

 

The National Industrial Corridor Development Program aims to establish a network of industrial corridors that will serve as engines of economic growth, promote industrialization, and create employment opportunities across India. The program focuses on developing world-class infrastructure, attracting investments, and fostering sustainable industrial development.

Sri Lanka will import one million eggs daily from five chicken farms in India to meet its growing market demand, the crisis-hit island nation's top importing agency said on Tuesday.

 

Sri Lanka State Trading Corporation (STC) Chairman Asiri Valisundara said that 20 million eggs were imported from India, of which 10 million have been released to the market.

 

The eggs were being imported from two chicken farms in India, and the Animal Production Department has additionally approved the purchase of eggs from three other farms, Valisundara was quoted as saying by the Colombo Page news portal.

 

STC Chairman Walisundara said it has been decided to import one million eggs daily from five chicken farms in India.

 

He said that permission was received to import eggs from three more farms according to the report given by the three officials of the Animal Production Department and the State Trading Corporation who visited poultry farms in India.

 

The further import of eggs is based on market demand, Valisundara said, the News First TV station reported.

 

He added that the imported eggs would be released to bakeries, biscuit manufacturers, catering services and restaurants at a price of SLR 35 each, the report said.

 

Sri Lanka has been facing a severe and unprecedented economic crisis since last year. The high inflation has eroded purchasing power, and the livelihoods of many people have been affected, and past development gains have been reversed. The island nation is struggling to normalise its crisis-hit economy after it declared its first-ever debt default in April last year.

The government has cleared nearly 1.06 million-tonne of grains, including wheat and rice, for export under the country’s diplomatic food assistance programme to four countries while an overall ban on wheat shipments out of the country and curbs on rice export will continue, an official said on Tuesday, requesting anonymity.

 

India banned wheat export in May 2022 and introduced a 20% tariff on that of non-basmati rice in August 2022 to shore up domestic supplies and control prices after poor harvests. It also banned the export of broken rice, which is a key ingredient of cattle feed.

 

The ban exempted grain export for countries that request India for shipments to overcome shortages. At that time, food minister Piyush Goyal said although India was not a major exporter of wheat, it would supply to 'friendly countries facing a food crisis'.

 

The food ministry has cleared over 300,000-tonne of wheat shipments to Nepal, 200,000-tonne of broken rice to Indonesia, 500,000-tonne of broken rice to Senegal, and 50,000-tonne of broken rice to Gambia after discussions with the external affairs ministry under humanitarian food assistance.

 

The country curbed grain exports after a heatwave plunged federally-held wheat reserves to a 14-year low last year. This year, the Food Corporation of India has purchased nearly 27 million of wheat for state-owned stockpiles, short of a targeted 34 million tonne.

 

Under the World Trade Agreement rules, India cannot export publicly held grains intended for domestic welfare schemes. Food exports from government stocks can be exported only for humanitarian assistance through diplomatic channels.

 

Last year, despite India’s ban, requests for food shipments were received from over a dozen countries as a global food crisis triggered by the Ukraine war crimped availability, pushing up prices. 'Outbound shipments had gone to Bangladesh, Oman, UAE, and Afghanistan among others with an undertaking by their governments that Indian wheat should be used for their own consumption and not trade or exports,' the official cited above said.

 

Unlike wheat, India is a major exporter of rice. In 2021-22, the country exported nearly 22 million-tonne of rice, about a sixth of its total output. India accounts for 40% of the world’s rice shipments.

 

The government procures, or purchases, cereals at minimum support prices, which are then distributed to nearly 800 million beneficiaries through the public distribution system (PDS) under the National Food Security Act.

 

According to the food ministry’s calculations, the government will require 18.5 million-tonne of cereals for distribution under PDS and other welfare schemes, leaving it with a surplus of nearly 8.6 million-tonne.

 

Official figures released on May 26 showed the government procured 52.06 million-tonne of rice during the kharif marketing season (2022-23) at minimum support prices, resulting in a payout of Rs.1.6 lakh crore to over 10 million farmers.

India's standout growth momentum should sustain through this year of poor global economic expansion on moderating inflation, the central bank said in its annual report, attributing durability of the country's world-beating growth credentials to recent structural reforms undertaken by the Centre.

 

Inflation is already moderating and the external account is sound, the Reserve Bank of India (RBI) said, but the El Nino and its adverse impact on rainfall remain potential threats to macroeconomic stability and food prices. Furthermore, moderating global growth, protracted geopolitical tensions and a possible upsurge in financial market volatility, evident in the implosion of many regional US banks, pose downside risks. 'It is important, therefore, to sustain structural reforms to improve India's medium-term growth potential,' the RBI said.

 

While the growth outlook appears to be more uncertain for several emerging markets as they face food and energy shortages and unsustainable debt overhangs, the RBI credited India's stellar performance to sound macro fundamentals, fiscal policy thrust on capital expenditure, healthy corporate and financial sector balance sheets, and structural reforms implemented over the recent years by the government.

 

'Private Capex may Go Up'

'Domestic economic activity does face challenges from an uninspiring global outlook going forward, but resilient domestic macroeconomic and financial conditions, expected dividends from past reforms and new growth opportunities from global geo-economic shifts place India at an advantageous position,' the central bank said.

 

To be sure, India contributed more than 12% to global growth on average during the past five years. The country is expected to have recorded economic expansion of 7% in real GDP in 2022-23 despite several global shocks.

 

The government's sustained expenditure on building capital assets is expected to be mimicked by the private sector, with several industries already reaching thresholds that should demand addition to capacity.

 

'The crowding-in effects of sustained increase in government capex over recent years is expected to spur higher private investment in 2023-24,' the central bank said.

 

Inflation is also moderating, creating a stable platform for growth sustainability.

 

'Risks to inflation have moderated with downward corrections in global commodity and food prices and easing of the pass-through from high input cost pressures of last year,' the RBI said.

 

Crop Prospects Hinge on Rainfall

Still, food prices could turn erratic in case of rainfall deficiency due to the anticipated El Nino event. Summer-sown (kharif) crop prospects would depend on the progress of rainfall. Otherwise, the inflation trajectory is expected to move down over 2023-24, with headline inflation edging down to 5.2% from the average level of 6.7% recorded last year.

 

The Centre has set the target for grain production at 332 million tonnes in FY24, which is 0.4% above previous year's output.

 

In the external sector, the current account deficit is likely to remain moderate, backed by robust services exports and the salubrious impact of moderation in commodity prices of imports. India Ratings and Research expects the current account to be in surplus of around $6 billion, which is 0.7% of GDP, in the fourth quarter of FY23 after a gap of six quarters.

For the third consecutive year, exports of non-basmati have surpassed that of basmati. In FY23, non-basmati comprised 24% of the country’s total agricultural and processed food products exports (in terms of value), followed by basmati (18%). Besides this, it was the largest item in agri export basket in FY21 and FY22. Last time, it was in FY20 when the basmati exports were the highest from India.

 

As per data of the Agricultural and Processed Food Products Exports Development Authority (APEDA), the exports of non-basmati during FY23 have been to the tune of Rs 51,089 crore against Rs 45,725 crore in FY22.

 

According to industry, competitive pricing has ensured a surge in rice exports in the last fiscal and adherence to quality parameters has resulted in a significant demand for Indian rice from across the globe.

 

Exporters attribute the rise in exports to robust global demand, especially from the West Asian countries, Africa and Europe.

Made-in Uttar Pradesh alcohol, which is extremely popular within the country, seems to be in high demand in the overseas market as well. The demand for bottled liquor that is exported out of the state to foreign destinations has grown significantly during the year 2022-23, as per IANS report.

 

The excise department released provisional figures which showed that the demand for bottled UP-based liquor brands has increased at least 23 per cent between April 1, 2022, and December 31, 2022, as compared to the previous fiscal year.

 

During the 2021-22 fiscal year, a total of 7.74 lakh cases of alcoholic beverages were sold abroad and during the nine-month period of the FY 2022-23, the state has already exported 9.48 lakh cases.

 

Though the sale volume for UP-made liquor in the last quarter (January to March 2023) is yet to be compiled, the final figures are expected to be much higher, added the IANS report.

 

Mohan Meakin and Radico Khaita create demand globally

 

About more than two dozen different IMFL (India-made foreign liquor) companies are present in Uttar Pradesh. But only Mohan Meakin and Radico Khaitan have been able to create demand for their brands internationally.

 

The dark rum produced by Mohan Meakin in Ghaziabad continues to be the hot seller internationally, said officials concerned.

 

'Of late, the demand for Indian single malt and craft gin has also picked up. The two premium products are produced in Rampur by Radico Khaitan,' said a senior officer from the department, as quoted by IANS.

 

For the past six years, barring the pandemic-induced slowdown, the two companies have been recording steady growth in the business and are catering to 38 countries. They have operations in other states as well and could be exporting more brands.

 

Dark Rum, premium products in demand in THESE countries

 

Popular dark rum and premium products have demand in developed countries like the US, UK, Canada, Australia, Germany, Finland, Switzerland, Norway, New Zealand, Russia, Japan, South Korea, Singapore, Hong Kong, Qatar, and Oman among others.

 

Least developed countries, including Congo, Liberia, Zambia, Djibouti in Africa, and Haiti in the Caribbean also procure affordable and cheap IMFL brands from Uttar Pradesh.

 

Excise Commissioner Senthil C. Pandian, meanwhile, said that handholding sessions for other liquor manufacturers will be organised in the coming months to improve the business prospects.

 

'We are going to create awareness over the procedure that needs to be followed while exporting liquor products. We have observed that both premium, mid-range, and affordable products are being sold internationally but the quality required in the various international markets needs to be maintained,' said Pandian as quoted by IANS.

 

Amid expectations of a bumper mango production of nearly 3.5 million tonnes (mt) in Uttar Pradesh, the state mango exporters are gearing up for shipments to the Gulf. Exports are also expected to European countries, Mango Growers Association of India President Insram Ali said.

 

Traditionally, UP mango is exported to the Gulf apart from shipments to a few South East Asian countries viz. Malaysia, Singapore from South India.

 

Mango shipments are likely to begin after the first week of June.

 

If the inclement weather including hailstorms and the unseasonal rainfall had not played a truant with plantations, the state’s mango output, especially Dussehri, could have touched 5 mt in the season.

 

'The flowering of the mango crop was robust, but the adverse weather played a spoilsport. Yet, we are expecting the production to touch 3.5 mt this year,' he added.

 

Apart from the flagship Dussehri variety, other UP mango varieties include Langda, Chausa, Amprapali and Mallika. Dussehri forms the bulk of the state mango exports owing to its sweet taste and lilting aroma.

 

Meanwhile, Western UP-based Shahnaz Exports Promoter Nadeem Siddiqui said mango shipments would mainly head to Saudi Arabia, Bahrain, and Kuwait. 'We have received bulk orders from the Gulf markets, and now it is for the exporters to fulfill them within the stipulated time frame.'

 

However, he lamented that the frequency of flight from Lucknow to the Gulf has come down, hampering the state mango export potential.

 

Meanwhile, Ali demanded that the government allow the setting up of mango-based food processing industries, such as pickles, juice etc, in Lucknow Dussehri belt to incentivise farmers and create a sustainable value chain.

 

'The state government should promote tourism in the mango belts and allow setting up of hotels in the larger interests of the beleaguered farmers,' he added.

India’s sugar production is projected to increase by 4 million tonnes (mt) to 36 mt in 2023-34 season (October 2023-September 2024), the US Department of Agriculture (USDA) has said.  But the output could be affected in the case of El Niño turning out to be a strong event in Asia, say analysts.

 

'India’s production is estimated up 4 mt to 36 mt on higher sugarcane area and yields. Consumption is anticipated to be up on increased demand from bulk buyers and processed food manufacturers,' the USDA said in its bi-annual 'Sugar: World Markets and Trade' report. 

 

India’s sugar production in the 2022-23 season has been estimated at 32.8 mt, down from 3.8 mt last season, by the Indian Sugar Mills Association (ISMA), a body of private mills. The output was initially estimated over 36 mt. 

 

Impact in 2015-16  

This season, India’s sugar production was affected by unseasonal rains affecting production in Maharashtra and Karnataka. ISMA will likely come up with its projections on 2023-24 sugar production in July. 

 

Research agency BMI, a unit of Fitch Solutions, said in India, on an average, a climatic shift to El Niño brings about below-average precipitation levels during monsoon season. This is not always the case, though, it said. 'Looking at India’s sugar output during a strong El Niño 2015-16, domestic production declined sharply, falling by around 10 per cent,' BMI said. 

 

Similarly, output was hampered in other important Asian markets, including Thailand, where output was also curbed by approximately 10 per cent during the last strong El Niño, it said, noting that a transition to El Niño could have significant consequences for major sugar-producing countries.   

 

Global output seen up 

Tarun Sawhney, Vice-Chairman and Managing Director, Triveni Engineering and Industries Ltd, said El Nino might have some impact. 'But from a sugar perspective, I think we will still have surplus sugar in the country. We will have enough sugarcane to meet the ethanol blending programme and we will have surpluses,' he told businessline. Triveni Engineering owns seven sugar mills in Uttar Pradesh. 

 

The USDA in its report said global sugar production is forecast up 10.6 mt at 187.9 mt with higher production in Brazil and India more than offsetting a decline in Russia.

 

International sugar broking firm Czarnikov’s portal Czapp has projected the commodity’s production next season at 178.8 mt. This is lower than its April estimates as it expects El Nino to affect the crop in Thailand. 

 

BMI forecasts that if weather conditions are favourable, there could be a 6.9 mt sugar surplus in 2023-24. However, during the 2015-16 El Niño, global production contracted by 7.1  per cent year-on-year, which applied to its 2023-24 production figures, would suggest that global production balance forecasts will swing from a surplus to a deficit. 

 

Rising consumption

One of the fears as regards the 2023-24 season is increasing consumption and demand-supply balance. The USDA has projected global demand rising to 180.04 mt. This will leave ending stocks at 33.45 mt. Czapp sees consumption outstripping supply at 178.9 mt.

 

Indian demand is projected to top 31 mt by USDA, while it may export 7 mt against 6.1 mt this year. 'Exports are expected to rise only slightly on the likelihood that the government maintains export caps to control inflation,' it said.  

 

In 2021-22 and 2022-23 seasons, India capped sugar exports to ensure ample supply in the domestic market. In 2021-22, exports were capped at 10 mt, though eventually 11.2 mt were shipped out. This season, exports were capped at 6 mt. 'If India does not export sugar next season, global prices could go up substantially,' said Sawhney. 

 

Harvest may be hit

BMI said, 'Looking at Brazil, while an El Niño event would typically lead to increased rainfall in the world’s largest producer, as it did in 2015-16, heavy rain will delay the progress of the country’s harvest, which runs from May to December.'

 

However, as yet, the strength of the looming El Niño remains unclear, and much will depend on the severity of it, the research agency said. 'Should it be a strong El Niño, we expect global production to be further constrained and concerns to grow over global supply, ensuring that prices find further support,' BMI said.

Over the past few years, the North-East has been seeing a silent but determined movement to promote local millets, such as foxtail, sorghum and pearl, and revive some that had virtually gone extinct. Millet raishan, for instance, used to be a staple food in Nongtraw, in Meghalaya’s Khasi Hills, until the early 1970s. 'It was our rice,' remembers Pius Ranee, executive director of the Meghalaya-based North East Slow Food and Agrobiodiversity Society (Nesfas)— even used in soups, breads, biscuits and local beer. Job’s tears, megaru in Garo and sohriew in Khasi, too had given way to rice and wheat.

 

Now, organisations such as Nesfas, the Nagaland-based Northeast Network and Assam-based Caritas India (FARM North East programme) are working to revive of millet cultivation; it helps that 2023 is being celebrated as the International Year of Millets. Meghalaya’s Mei-Ramew cafés, for instance, have introduced millet dishes, with Nesfas’ support. Mei-Ramew, incidentally, translates to mother earth. After a Nesfas-promoted workshop, Naphisa Mawroh, a local baker in Shillong, has begun producing and marketing millet-based products, including breads, cookies, cupcakes and pizzas, at her café, Samanbha Bakery.

 

For the first time, more than half of India’s cultivated land now has access to assured irrigation led by an expansion in micro projects, which have higher water-use efficiency, official data for 2022-23 show.

 

In 2022-23, of the 141 million hectares of gross sown area in the country, nearly 73 million hectares, or 52%, had irrigation access, up from 41% in 2016, according to updated data from Niti Aayog, the state-run think-tank.

 

The increase in irrigation cover, especially in dryland agricultural zones of states, such as Telangana and Andhra Pradesh, will help mitigate the increasing impacts of drier summers and patchy monsoons that are partly linked to the climate crisis, analysts say.

 

Agriculture accounts for nearly 80% of the country’s annual available water use, or 700 billion cubic metres. The June-September monsoon, vital for the world’s fifth largest economy, still waters much of the kharif or summer-sown crops.

 

When the monsoon is poor, farm incomes take a hit. Its effects ripple into the broader economy because rural demand is key to the country’s economic growth. For instance, rural customers account for nearly half of all two-wheelers sales in a year.

 

Global warming has made the rain-bearing system more erratic, with too much rain in a short period or too little, according to Roxy Mathew Koll, a scientist with the Indian Institute of Tropical Meteorology.

 

A micro-irrigation fund (MIF) with corpus of Rs.5000 crore was created with the National Bank for Agriculture and Rural Development (NABARD) during 2018-19 to help states mobilise resources. Under the fund, central assistance worth Rs.12,696 crore has been released to states, of which Rs.11,845 crore was utilized till the last financial year.

 

The increase in irrigation cover since 2017-18 was driven by six programmes and projects, according to data seen by HT. These are the Pradhan Mantri Krishi Sinchai Yojana (PMKSY) and the Accelerated Irrigation Benefit Programme (AIBP), under which Rs.11,505 crore was released between 2017-18 and 2021-23; Har Khet Ko Paani-Surface Minor Irrigation ( Rs.4,000 crore); PMKSY-groundwater projects ( Rs.787 crore); special package for Maharashtra ( Rs.1,988 crore); Rajasthan and Srihind feeder ( Rs.300 crore) and Shahpur-Kandi project ( Rs.298 crore). In Madhya Pradesh, 21 prioritised irrigation projects have been identified under PMKSY-AIBP. Out these, 17 projects have been completed, increasing the state’s irrigation cover by 16%.

 

Of the total irrigation-infrastructure expansion, micro irrigation facilities through sprinklers and drip systems were installed in 8 million hectares. Out of the total irrigated area in the country, 40% is currently watered through canal networks, while 60% through groundwater, which in several states has plunged to severely depleted levels, the data show.

 

'There’s much more to do. The total potential for micro-irrigation in the country is estimated to be 60 million hectares. Conventional surface irrigation provides only 60% efficiency but drip irrigation has nearly 90% efficiency,' said SK Jayashankar, an expert with the Watershed India Trust.

 

The country can create irrigation potential in about 60% of its arable land and 40% of the cultivable area will remain dependent on rains because it is not possible to create irrigation networks in certain regions due to hydrological and geographical reasons, according to a document of the Jal Shakti ministry.