While asserting his government's commitment over uplifting the living standards of the farming community, Agriculture Minister Kakani Govardhan Reddy said that the government has proposed to establish as many as 147 Agriculture Labs in every rural area in the entire State to prevent farmers from getting cheated while purchasing fertilisers, seeds, pesticides from various companies.

 

Along with Joint Collector Ronanki Kurmanath and District Agriculture Advisory Council Chairman (DAACC) Niranjan Reddy, the Minister inaugurated the newly constructed Bio-Fertilisers and Organic Fertilisers Quality Control Lab (BFOFQCL) on the premises of Nellore RDO office here on Thursday. This lab is the first of its kind in the State and costs about Rs 2.4 crore.

 

Speaking the occasion, the Minister said that 73 Agriculture labs were already started and 50 were under various stages of construction while construction of another 24 are yet to be begin. Describing the establishment of BFOFQCL as the brainchild of Chief Minister YS Jagan Mohan Reddy, he stated it was decided to set up this kind of labs at every district headquarters, as part of the initiative of bringing radical reformations in agriculture sector.

 

Minister Govardhan Reddy informed that the government will introduce Plant Doctor Procedure (PDP) very soon for conducting soil testing. This is a unique concept, which will help in creating awareness among farmers over performing cultivation based on soil capacity in the lands, he added. He further disclosed that 1,077 Rythu Bharosa Kendram buildings were completed out of the total 3,000 buildings and construction of the remaining are under progress.

Indian non-basmati white (raw) rice prices for exports have increased by over $25 a tonne during the past fortnight on tight domestic supplies and demand from markets abroad, traders and exporters said. 

 

However, parboiled (boiled) rice prices have dropped by $5 a tonne and Indian white rice continues to be competitive by $20-30 over the nearest competitor in the global market. In the case of parboiled rice, the Indian cereal is at least $100 a tonne competitive.

 

'We are facing problems in getting white rice supplies in the domestic market as the Centre is procuring it for the central pool stocks. On the other hand, parboiled rice availability has increased, pulling down its prices,' said VR Vidya Sagar, Director, Bulk Logix. 

 

New crop arrivals begin

'Though our prices have increased, we are still competitive in the global market. Arrivals of new rabi paddy crop have begun in Odisha, Telangana and Andhra Pradesh. Exporters are paying farmers prices closer to the minimum support price (MSP),' said BV Krishna Rao, President, The Rice Exporters Association (TREA). 

 

The MSP for paddy this year is ?2,040 a quintal. India is quoting $453-57 a tonne for 5 per cent broken white rice against $432-36 two weeks ago. The 25 per cent broken white rice is offered at $438-442 compared with $417-22. India’s nearest competitor Vietnam is quoting at least $25 higher for both these varieties.

 

'There is good demand for 5 per cent broken white rice from Vietnam. We are getting enquiries from East Malaysia and Timor too,' said M Madan Prakash, President, Agricultural Commodities Exporters Association (ACEA).

 

'It is all down to demand-supply. The next crop in Thailand will arrive only in September. Vietnam may have to fulfill demand from China in case El Nino strikes and affects the Indian monsoon,' said a New Delhi-based trade analyst.

 

Enquiries from Africa

Sagar said parboiled rice was available even at $370 a tonne from India. 'Now that Ramzan is over, we expect some movement in rice to Africa and West Asia,' he said. 

 

'This year, our exports are likely to match last year’s volume. We will be meeting all requirements,' said Rao. 

 

'We are getting enquiries from Africa, while demand for South-East Asia is in small volume,' said Prakash.

 

The analyst said China has maintained silence over its stock situation. 'Vietnam and Thailand are expecting a bigger crop. There is no cause for worry with regard to India,' he said. 

 

Data from Agricultural and Processed Food Products Development Authority (APEDA) show that non-basmati rice exports during the April-February period of 2022-23 fiscal were marginally higher at 16.09 million tonnes (mt) compared with 15.64 mt a year ago. 

 

Export curbs

The rise was despite India imposing a 20 per cent export duty on non-basmati white rice from September and banning shipments of fully broken rice. The Government took these measures to curb exports as it feared rice production could be hit by deficient rain during the south-west monsoon. 

 

Though kharif rice production dropped to 108 mt against 111 mt a year ago, overall production of the cereal has been estimated higher at a record high of 130.83 mt during the current crop year to June against 129.47 mt last crop year.

 

As regards rice, India’s central pool stocks are comfortable as the government has procured a good volume, said the analyst.

 

According to the Food Corporation of India, rice stocks as of April 1 were 24.86 mt compared with 32.32 mt a year ago. In addition, it has 27.64 mt of paddy (19.35 mt of rice). 

 

'There might be a sharp uptrend in rice prices after June,' the analyst said. 

The Khunti district administration on Thursday started a two-day millet festival to observe the International Year of Millets 2023, which was declared by the United Nations. The festival is organised at the Birsa Agricultural College in association with the PHD Chamber of Commerce and Industry under the Pradhan Mantri Formalisation of Micro Food Processing Enterprises scheme and will have a conclave and an exhibition.

 

Notably, India is playing a huge part in the UN initiative to promote millet through various measures.

Khunti deputy commissioner Shashi Ranjan, said, 'The purpose of this festival is to spread awareness on the nutritional values and importance of millet.'

 

An official of PHDCCI, Mili Dubey, said, 'The festival will increase awareness that coarse grains like sorghum, maize and millets are important for food security and nutrition. It will also promote the sustainable production and quality improvement of millets. The objectives also include research and development, expansion of services and drawing attention for increasing investments in millets.'

The Goa Chamber of Commerce and Industry (GCCI) has decided to tie up with the Netherlands’ HAS University to promote agriculture in both countries. The Netherlands is also keen on sharing technical know-how with Goa in the fields of waste management, climate change, and sustainable development goals.

 

Deputy consul general of the Netherlands, Thierry Van Helden, led a delegation to hold a meeting with GCCI officials, including GCCI president Ralph de Sousa. Van Helden also met tourism minister Rohan Khaunte, with whom he discussed collaboration in tourism and information technology between Goa and the Netherlands.

 

'It was a productive meeting exploring innovative ideas to strengthen our partnership,' said Khaunte.

 

Van Helden also informed GCCI that the Netherlands is open to working with and supporting Goa’s startups.

 

'GCCI will also be signing an MoU with HAS University, Netherlands, for the promotion of agriculture in both countries. A team of Dutch students is already in Goa and is undergoing training for the same,' said de Sousa.

 

Goa has been exporting horticulture products like cassava, Goan okra (lady finger) and averrhoa (bimbli) to the Netherlands. The Netherlands has been India's top trading partner in Europe, with FDI of $4.6 billion last year. The Netherlands imports tea, coffee, spices, and essential oils from India.

 

De Sousa also said that diamonds and jewellery are the main business areas in which both countries have shared interests.

Van Helden said that the Netherlands wants to expand trade with India. He also enquired about IT and startups in Goa and offered to support the startup industry.

 

GCCI’s director general, Sanjay Amonkar, briefed the Dutch delegation about the startup incubators in the state, particularly BITS Pilani, which focuses on medical engineering research and semiconductors. 'New innovations in managing waste and plastic are welcome,' said Amonkar.

Panama is well positioned to serve as India’s gateway to the Latin American region, offering unique logistical capabilities as a maritime hub and business- and investment-friendly economic environment, its foreign minister, Janaina Tewaney, told ET.

 

Tewaney had hosted external affairs minister S Jaishankar on Monday on his arrival from Guyana. Jaishankar is on a nine-day official trip to the Latin American countries and the Caribbean.

 

Panama is India’s largest trade partner in Central America, with bilateral trade reaching $610 million in 2022, according to Tewaney. She played a key role in organising two regional meets for Jaishankar during his stay in Panama City where the leaders brainstormed ideas to enhance India's business footprints across Central America and Latin America.

 

'One characteristic of Panama can enable the country to position itself as the entry point for India to the Latin American region: stability,' Tewaney said. 'We had the lowest level of inflation in the region at only 2.1% in 2022, and currently have the highest GDP per capita (measured in purchasing power parity terms) in the region, according to the latest figures from the IMF.'

 

Panama sees the pharmaceuticals sector as a priority area for cooperation with India. 'Panama is working with the UNIDO to develop its capacity as a pharmaceutical hub, both boosting domestic pharmaceutical production and leveraging the Panama Canal and the country’s unique market access advantages to get medicines to those who need them,' she said.

 

Tewaney said Jaishankar had meetings with ministers and officials from six different ministries and departments.

 

'This week, Panama was the convener for two larger regional groupings: first as the host of the Latin America-India Forum, a business forum that brought together executives from India and the broader Latin American region, and the next day as the meeting point for the SICA-India Ministerial meeting,' she said. 'Both meetings were underscored by a sense of optimism and shared interests to deepen cooperation, specifically in four areas: green energy and sustainability, healthcare, digitalisation and industries 4.0, and gender equality.'

 

The Panama Canal handles an estimated 6% of the world’s maritime commerce and is obligated under international law to be neutral, positioning Panama as a unique partner for any country seeking to build stable global supply chains and exports, including India, the minister said, adding, 'I was delighted to take Minister Jaishankar to visit the canal. Already, some Indian companies have begun to realize the importance of Panama as a business hub for the Americas. As a result of the increased momentum in the political and economic relationship, we may see more such investments soon.'

India's free trade agreements with developed countries will greatly facilitate its entry into the supply chains of multinational companies and significantly push up exports, Arvind Virmani, member, NITI Aayog, said in an interview to ET.

 

Outlining the challenges and opportunities before India as it strives to become a developed nation by 2047, Virmani said global inflation and oil prices are expected to cool over the next one year and that will have a positive impact on the Indian economy with an expected enhanced capex from the private sector.

 

'The big export boom, whether in Asia, Malaysia, Thailand or South Korea since the 1980s has all been led by MNCs. Since supply chains of MNCs now constitute something like 50% of the world exports, FTAs with developed countries will greatly facilitate the entry of India into their MNC supply chains, push labour intensive manufacturing and increase exports,' he said.

 

According to Virmani, it is very important to diversify supply chains out of China because of the recent supply shocks and the direct threat that India faces from its neighbour. 'The main reason is that we are already too enmeshed in the Chinese supply chain,' he said.

 

'Further, due to the geo economic coercion and a direct security threat, it's too dangerous for us in the future and hence we want to reduce dependence on at least critical inputs from China,' Virmani said, hence the decision not to join the Regional Comprehensive Economic Partnership and instead go for FTAs with developed nations.

 

Speaking on the revival of the private sector investment to match the government's enhanced capex in 2023-24, Virmani said the multiple waves of the pandemic, and each happening at different times in different parts of the world, has messed up the whole demand supply global equation much more than anticipated, leaving businesses confused on the future of their investments.

 

'So, assuming the current condition persists and there are no fresh major shocks, I expect global inflation will come down and this will soften the interest rates. So, everything will reverse, and things should look better, but the exact timing is very hard to predict,' he said.

 

Commenting on the impact of high oil prices on India, Virmani said the Ukraine war and geopolitical movements have pushed up oil prices which has negatively impacted our GDP growth. 'However, now Russia's supply chain is shifting from Europe to China and Asia. So, in that sense, prices should moderate over time,' he said.

 

However, Virmani cautioned that the change in objectives, goals and methodology of OPEC nations has left it unclear as to how it will benefit India. 'It is unclear that even when global output falls, oil prices will fall as much as they used to. And that is very critical for us. So, this is a new risk to India,' he said.

 

In his candid conversation, Virmani outlined several opportunities that can drive India's economic growth over the next 25 years.

Surpassing the target of $23.56 billion, exports of major agriculture and processed products (broadly divided under 27 categories) promoted by nodal agency Agricultural and Processed Food Products Export Development Authority (APEDA) jumped 8.74 per cent to $26.72 billion during the last fiscal from $24.57 billion in 2021-22.

 

Pulses, Basmati rice, guar gum, groundnut and poultry products were the top performers which registered over 32 per cent growth rate. However, wheat, floriculture and meat (other than buffalo, sheep and goat meat) exports declined.

 

Due to thesudden ban imposed by the Centre on wheat exports last May, which still continues, the volume dropped to 4.69 million tonnes(mt) worth $1.5 billion from 7.24 mt a year ago.

 

India’s agricultural exports, including marine products and spices, surged about 20 per cent to $50.21 billion during 2021-22, in which APEDA-promoted products had over 50 per cent share. The government is yet to release the total agri export performance.

 

Top earners

In the APEDA basket, rice (both basmati and non-basmati) remained the top forex earner at $11.14 billion during 2022-23 against $9.67 billion in 2021-22. Data show that though Basmati rice had an impressive performance, the low rise in the non-Basmati segment dragged the overall growth in the rice sector to 15.2 per cent.

 

Exports of non-Basmati rice were 3.62 per cent up at $6.36 billion, while that of Basmati were up 35.3 per cent at record $4.79 billion last fiscal from year before.

 

APEDA’s major exporting destinations were Bangladesh, UAE, Vietnam, USA, Nepal, Malaysia, Saudi Arabia, Indonesia, Iran, and Egypt last year. 'The rise is significant in agri-exports amid the geopolitical tensions and we are committed to perform better with the focus on several key products identified already,' said M Angamuthu, Chairman, APEDA. The emphasis on Shri Anna (millets) and their promotion via G20 meetings will be booster for its exports, both of raw grains and valued-added products, he added.

 

Export of pulses grew to $662 million in 2022-23, up 84 per cent from $359 million a year before. Shipments of poultry products grew by 89 per cent to $134 million from $71 million, while that of guar gum increased by 38 per cent to $617 million. Export of groundnuts rose 32 per cent to $832 million, that of processed vegetables by 24 per cent to $509 million($412 million).

 

Fresh fruits and vegetables exports were up by 5.7 per cent to nearly $1.79 billion from $1.69 billion, while processed fruits and vegetables exports were up by 19 per cent to reach $1.42 billion ($1.19 billion). Exports of alcoholic beverages grew by 18.5 per cent to $325 million from $274 million.

 

The Union Minister of Agriculture and Farmers Welfare Shri Narendra Singh Tomar inaugurated the Summit on Farm Machinery Technology, organized by Confederation of Indian Industry (CII) and Tractor and Mechanization Association (TMA). Shri Tomar said that there are about 85 percent small farmers in the country, who should get the benefit of technology & machinery. Under the leadership of Prime Minister Shri Narendra Modi, the government is continuously working in this direction at its level. An amount of Rs.6120.85 crore has been released to the states from 2014-15 to 2022-23 for various activities like training, testing, setting up of CHCs, hi-tech hubs and Farm Machinery Banks (FMBs) under the Sub-Mission on Agricultural Mechanization (SMAM). Besides 15.24 lakh farm machinery and equipment have been distributed at subsidized rates through state governments, including tractors, power tillers and automated machinery.

 

Chief Guest Union Minister Shri Tomar said that by implementing the new system at the Central Farm Machinery Training and Testing Institute (CFMTTI), Budni (M.P.), the Government of India has reduced the time taken for completing the testing of tractors to a maximum of 75 working days. Also, from the year 2014-15 to 2022-23, 1.64 lakh workers have been trained by the Central Government through its four FMTTI designated authorized test centers. The introduction of the Rupees One lakh crore Agricultural Infrastructure Fund is also an important step in this direction, in which projects worth Rs. 14,000 crore have been approved which are benefitting the farmers. Kisan drones are being promoted, for which along with introducing the drone policy, subsidies are being given to various sections including farmers, SC-ST category, women farmers while crop specific SOP has also been issued for application of pesticides with drones.

 

Shri Tomar said that agriculture is a priority of the country, no one could destroy the fabric of our agriculture-based rural economy even in adverse circumstances. In terms of agricultural products, India stands at Number One or Second rank in the world today, which is a result of the hard work of the farmers, the contribution of scientists and industry, and the farmer friendly policies of the government with the support of technology. But we do not have to rest on our laurels, rather we have to prepare a roadmap keeping in view the requirement of the population that will increase by 2050 and in the changing political scenario, according to the growing importance of India in the world, we are concerned about meeting the needs of our country as well as other countries. While doing so, we have to play an important role. After 2014, a different type of work culture has taken roots in the country under the leadership of Prime Minister Shri Modi. The changes that have come in these years have spread hope across the country and the world. If the resolution of the government is strong and the intent of the leader is noble, then the initiative is good and the ability to accept it also increases. Today, India is ahead of America, Japan and Germany in cashless transactions.

 

The Union Minister said that when we are in the competition of production, we should increase it by comparing it with the production of foreign countries instead of the figures of previous years of our own country. We have to keep on increasing the production of food grains even if the land is less. Agricultural scientists have crucial role in this, as well as the importance of technology including machines has also increased in the present circumstances. The waste lands should also be made cultivable and according to the demand of the time, there is a need to attract the new generation towards agriculture. The government is working in this direction under the leadership of Prime Minister Shri Modi. Farmers' access to the market has also been increased through e-NAM mandis and the gaps in the agriculture sector are being filled up, for which more than Rs 1.5 lakh crore packages have been earmarked for Agriculture and Allied sectors. He emphasized on taking technology like micro-irrigation to maximum number of farmers while saving water.

 

Shri Bhartendu Kapoor, Shri Mukul Varshney, Shri Krishna Kant Tiwari, Shri Antony Cherukara and other office bearers and members were present in the program. The conference was attended by stakeholders including Original Equipment Manufacturers, policy planners, suppliers, product development and design firms.

Indian non-basmati white (raw) rice prices for exports have increased by over $25 a tonne during the past fortnight on tight domestic supplies and demand from markets abroad, traders and exporters said. 

 

However, parboiled (boiled) rice prices have dropped by $5 a tonne and Indian white rice continues to be competitive by $20-30 over the nearest competitor in the global market. In the case of parboiled rice, the Indian cereal is at least $100 a tonne competitive.

 

'We are facing problems in getting white rice supplies in the domestic market as the Centre is procuring it for the central pool stocks. On the other hand, parboiled rice availability has increased, pulling down its prices,' said VR Vidya Sagar, Director, Bulk Logix. 

 

New crop arrivals begin

'Though our prices have increased, we are still competitive in the global market. Arrivals of new rabi paddy crop have begun in Odisha, Telangana and Andhra Pradesh. Exporters are paying farmers prices closer to the minimum support price (MSP),' said BV Krishna Rao, President, The Rice Exporters Association (TREA). 

 

The MSP for paddy this year is ?2,040 a quintal. India is quoting $453-57 a tonne for 5 per cent broken white rice against $432-36 two weeks ago. The 25 per cent broken white rice is offered at $438-442 compared with $417-22. India’s nearest competitor Vietnam is quoting at least $25 higher for both these varieties.

 

 

'There is good demand for 5 per cent broken white rice from Vietnam. We are getting enquiries from East Malaysia and Timor too,' said M Madan Prakash, President, Agricultural Commodities Exporters Association (ACEA).

 

'It is all down to demand-supply. The next crop in Thailand will arrive only in September. Vietnam may have to fulfill demand from China in case El Nino strikes and affects the Indian monsoon,' said a New Delhi-based trade analyst.

 

Enquiries from Africa

Sagar said parboiled rice was available even at $370 a tonne from India. 'Now that Ramzan is over, we expect some movement in rice to Africa and West Asia,' he said. 

 

'This year, our exports are likely to match last year’s volume. We will be meeting all requirements,' said Rao. 

 

'We are getting enquiries from Africa, while demand for South-East Asia is in small volume,' said Prakash.

 

The analyst said China has maintained silence over its stock situation. 'Vietnam and Thailand are expecting a bigger crop. There is no cause for worry with regard to India,' he said. 

 

Data from Agricultural and Processed Food Products Development Authority (APEDA) show that non-basmati rice exports during the April-February period of 2022-23 fiscal were marginally higher at 16.09 million tonnes (mt) compared with 15.64 mt a year ago. 

 

Export curbs

The rise was despite India imposing a 20 per cent export duty on non-basmati white rice from September and banning shipments of fully broken rice. The Government took these measures to curb exports as it feared rice production could be hit by deficient rain during the south-west monsoon. 

 

Though kharif rice production dropped to 108 mt against 111 mt a year ago, overall production of the cereal has been estimated higher at a record high of 130.83 mt during the current crop year to June against 129.47 mt last crop year.

 

As regards rice, India’s central pool stocks are comfortable as the government has procured a good volume, said the analyst.

 

According to the Food Corporation of India, rice stocks as of April 1 were 24.86 mt compared with 32.32 mt a year ago. In addition, it has 27.64 mt of paddy (19.35 mt of rice). 

 

'There might be a sharp uptrend in rice prices after June,' the analyst said. 

The bilateral trade between India and Korea grew by 17.3 per cent to USD 27.8 billion in 2022, according to Korea Trade-Investment Promotion Agency (KOTRA). In 2021, the value of bilateral trade between the two countries stood at USD 23.7 billion.

 

Korea's exports to India increased by 21 per cent to USD 18.9 billion, while imports increased by 10.5 per cent to USD 8.9 billion.

 

Addressing India-Korea Future Industry Partnership Event 2023, Ambassador of the Republic of Korea to India Chang Jae-bok on Wednesday said, 'India and Korea must focus on the critical issue of green energy and learn from each other's strengths. Green energy, hydrogen energy, and EVs are the future, and Korea's leadership in producing EVs since 2005 is an excellent example for India'.

 

The two-day event is organised as part of a 50-year celebration of the India-Korea diplomatic relationship.

 

Through collaboration and cooperation, both countries can further emphasise the importance of adopting green energy and work towards achieving the sustainable development goals that both countries are committed to, Jae-bok said.

 

Executive Vice President for Economic Cooperation & Trade Affairs, KOTRA, Taeho Kim said both countries must prioritise cleaner energy and focus on SDGs, which are the need of the hour. Both countries will continue to work towards achieving these goals.

 

G20 Sherpa Amitabh Kant, who joined the event virtually, said as India takes on the G20 presidency, we aim to bring together countries to promote sustainable development goals that will benefit not only India but the world.

 

'Our belief in 'One World, One Family' drives us to contribute towards SDGs and promote sustainable practices that will enable future generations to live a greener and cleaner life. Through our efforts, we can create a more sustainable world that is harmonious and equitable for all.'

 

Items which Korea imported from India include petroleum products, vegetable substances, ferroalloy and steel products, while it exported mainly semiconductors communication devices and displays, among others.