The Department of Consumer Affairs and the German Federal Ministry for Economic Affairs and Climate Action signed the new Work Plan for 2023 during the 9th Annual Meeting of the Indo-German Working Group on Quality Infrastructure. The plan was signed in Berlin, Germany on 25 April 2023.

 

This year's Annual Meeting marks the 10th anniversary of the Working Group. Smt. Nidhi Khare, Additional Secretary, Department of Consumer Affairs and Dr. Daniela Broenstrup, Director General, Digital and Innovation Policy, Federal Ministry for Economic Affairs and Climate Action during the meeting emphasised the important role of the Working Group in reducing technical barriers to trade and promoting innovation and consumer protection.

 

The technical dialogues of the Working Group address key areas of economic cooperation between the two countries. In addition, they promote systemic harmonisation of quality infrastructure (QI) at an international level.

 

The annual meeting was attended by stakeholders from both sides including the Bureau of Indian Standards (BIS), the German Institute for Standardization (DIN), the German Commission for Electrical, Electronic & Information Technologies (DKE), other quality infrastructure organisations as well as industry associations including Federation of Indian Chambers of Commerce and Industry (FICCI).

 

The Stakeholders from QI bodies and industry provided insights on current QI developments in Germany and India. These included the Standards National Action Plan for India, as well as the German Standardization Roadmaps Circular Economy and Industries 4.0. Other contributions covered market surveillance activities in India, as well as applications of Artificial Intelligence (AI) in market surveillance and the digital accreditation symbol.

 

The Work Plan 2023 is structured along the key elements of QI, including standardisation, accreditation, conformity assessment, legal metrology, product safety and market surveillance. It addresses cross-cutting topics like harmonised global solutions as well as sector-specific cooperation topics, such as digitalisation (Industry 4.0, Artificial Intelligence, cyber security), circular economy, smart farming and machinery safety.

 

India’s horticulture sector has proven to be more profitable and productive than the agricultural sector and has emerged as a rapidly growing industry. According to the Agricultural and Processed Food Products Export Development Authority (APEDA), India ranks second in fruits and vegetable production in the world after China. The country's advantage lies in being a low-cost producer of fruits and vegetables because of a combination of factors such as favourable agro-climatic conditions, availability of labour, and low input costs. As a result, fruits and vegetables account for almost 90% of the total horticulture production in the country.

 

Horticulture contributes around 30.4% to the Gross Domestic Product (GDP) while using only 13.1% of the gross cropped area, making it a significant player in India's agricultural growth. In recent years, the total horticulture production in India has even exceeded the total production of food grains, highlighting the potential of the sector. Horticulture not only contributes to the nutritional needs of the country but also creates additional job opportunities in rural areas, expands the range of agricultural activities, and generates higher incomes for farmers.

 

The productivity of horticulture has increased significantly from 8.8 tonnes per hectare (TPH) in 2001-02 to 12.1 TPH in 2020-21, leading to a sharp rebound in production and acreage, far outpacing foodgrains production since 2012-13. In 2021-22, the total horticulture production was around 341.63 million tonnes, with fruit production at around 107.10 million tonnes and vegetable production at around 204.61 million tonnes. With its vast production base in horticulture, there is ample opportunity for export, with fresh fruits and vegetables being a major contributor. APEDA estimates that the country exported fresh fruits and vegetables worth INR 11,412.50 crore during 2021-22. Bangladesh, UAE, Nepal, Netherlands, Malaysia, Sri Lanka, the UK, Oman, and Qatar are the major export destinations for fresh fruits and vegetables.

 

But despite the fact that India's horticulture sector is growing, the country's share in global trade remains insignificant, accounting for only 1% of the global trade in vegetables and fruits. Export growth is being undermined by production challenges, marketing challenges, inadequate transport infrastructure, fragmented supply chains, and insufficient storage facilities. These factors result in delays and wastage and discourage farmers from improving the quality of their produce.

 

The horticulture sector faces many production challenges that stop it from realising its full potential, such as small operational landholdings, lack of irrigation and poor soil management. Take for instance, small operational landholdings that limit the amount of land available for cultivation, which in turn limits the number of horticultural crops that can be produced. Limited land availability also affects crop rotation and the use of sustainable agricultural practices, as small farmers may not have the space to rotate crops effectively or implement sustainable soil management practices. This can lead to reduced yields and decreased soil fertility over time.

 

Insufficient access to water for irrigation, coupled with poor soil management practices such as over-tilling, over-fertilising, and monocropping, can reduce soil fertility, leading to lower yields and lower-quality produce. Lack of irrigation can be particularly detrimental during dry spells or droughts, where crops can quickly wither and die due to insufficient water supply. In contrast, excessive water can also be harmful, leading to waterlogging, root damage, and reduced yields. The Government is addressing the irrigation problem through the Pradhan Mantri Krishi Sinchayee Yojana (PMKSY), which aims to promote the development of irrigation infrastructure, expand the cultivable areas, and enhance on-farm water efficiency. Pests and diseases are another constant threat to horticultural crops. Insect infestations, fungal infections, and other diseases can spread quickly, leading to lower production levels and crop losses.

 

The limited outreach of farm insurance and farm mechanisation, combined with a lack of access to institutional credit for small and marginal farmers, contribute to lower investment in the sector. To ensure the flow of adequate credit, the Government sets annual targets for the flow of credit to the agriculture sector, Banks have been consistently surpassing the annual target. Notably, the Government provides interest subvention of 2% on short-term crop loans up to INR 3 lakh.

 

Climate change, such as changing weather patterns, droughts, floods, and other natural disasters, is another significant challenge that can lead to crop failures and losses, which ultimately affects the sector's overall output. Land lease constraints also pose a challenge, particularly for small farmers who may not have access to adequate land for cultivation.

 

The horticulture sector also suffers because of weak Farmer Producer Organisations (FPOs), which typically play a vital role in the development of the horticulture sector by providing farmers with access to markets, financing, and technical assistance. The weakness of these organisations contributes to the sector's challenges, limiting farmers' ability to benefit fully from the opportunities available. Recognising the need to increase the bargaining power of farmers, the Government is implementing an FPO formation and promotion scheme with a budgetary outlay of over INR 6,300 crore. This scheme aims to promote the formation and strengthening of FPOs and agri-entrepreneurship development among farmers.

 

The horticulture marketing chain faces its own set of challenges due to the perishable nature of fruits and vegetables, which makes it difficult to store and transport them efficiently. Poor logistics and lack of equitable cold storage and warehousing facilities contribute to delays and wastages. The cold storage distribution among the states is inequitable, with around 59% of the storage capacity (i.e., 21 MMT) present in the four states of Uttar Pradesh, West Bengal, Gujarat, and Punjab, and most of it is only for the potato crop. Top crops have a short shelf life because of the absence of storage and warehousing facilities, which causes price rises in the same months every year. There is also a lack of guidance for farmers on which crops to plant, resulting in overproduction of certain commodities and shortages of others.

 

The horticulture sector will have to take measures to improve its production and value chain system. To address the issues faced by the horticulture sector, Bayer and The Economic Times have come together to organise a national seminar called the India Horticulture Future Forum 2023 on 26 April 2023. Grant Thornton Bharat LLP is the Knowledge Partner for the event. The forum aims to deliberate on the future of Indian horticulture, focusing on developments, opportunities, and challenges in the sector.

 

Despite the numerous constraints faced by the horticulture sector, there are several opportunities for improvement. One such opportunity is the Agricultural Marketing and Farmer Friendly Reforms Index, launched by the NITI Aayog, which ranks states and union territories based on their implementation of provisions proposed under the model APMC Act, joining the e-NAM initiative, providing special treatment to fruits and vegetables for marketing, and tax levies in mandis.

 

The Government is also working on reducing crop losses through the Pradhan Mantri Fasal Bima Yojana (PMFBY), which provides comprehensive crop insurance coverage from pre-sowing to post-harvest losses against non-preventable natural risks. Another key initiative is the Centre's Cluster Development Programme which has the potential to revolutionise the value chain by enhancing its scale. The programme aims to promote the integrated and market-led development of pre-production, production, post-harvest, logistics, branding, and marketing activities by leveraging the geographical specialisation of horticulture clusters.

 

Meanwhile, the Ministry of Food Processing Industries has launched several schemes aimed at promoting the food processing industry in India, including the creation of cold chain infrastructure, agro-processing clusters, backward and forward linkages, preservation infrastructure, Operation Greens, and Mega Food Parks. These schemes provide various facilities to food processing units, such as storage, testing labs, and logistics, while also stabilising the supply and prices of perishable commodities and promoting their value addition. The Government has also introduced post-harvest infrastructure schemes to reduce post-harvest losses, a Land Lease Act to help legalise leasing and allow tenants access to insurance and credit, and Soil Health Cards to promote soil health.

 

India is globally recognised as one of the top producers of fruits and vegetables, and the horticulture sector has consistently performed well in terms of production. By implementing these measures, the horticulture sector can expand even further and generate increased profitability for farmers. This growth can also help meet the rising demand for fruits and vegetables, both domestically and internationally.

Union Government after an extensive review of 27 pesticides through an appointed expert committee, based on substantial data on safety and efficacy submitted by the pesticides industry, decided to continue the use of 24 pesticides. This decision has been welcomed and lauded by the agri community, including small holding farmers as they have been already safely using these products for the last decades on multiple crops.

 

This move will ensure that Indian farmers continue to have access to the technology for crop protection at an affordable price, as these pesticides are manufactured in India.

 

Government decision to continue the use of these critical 24 pesticides demonstrates the realities of agriculture and the importance of farmers having access to technology that is affordable as they need to produce quality food at an affordable price compared to exorbitantly expensive imported substitute pesticides.

 

Farmers across the country have welcomed the government's decision, saying that access to safe and effective pesticides is critical for protecting crops and ensuring a good harvest. The continued use of these 24 critical pesticides is a necessary step towards safeguarding India's food production system while ensuring that farmers can continue to produce food efficiently and sustainably.

 

Gavneet Singh, director, Ambala Farmer Producer Organisations, Haryana, said, 'As farmers, we know how important it is to have access to safe and effective pesticides to protect our crops and ensure a good harvest. This decision by Government is a positive step as these pesticides continue to be recommended by the State Agriculture Universities and farmers have the experience of using them safely on their crops.'

 

Harpreet Singh, CEO, Pehowa Farmer Producer Organisations, Haryana, said, 'this is an important step towards safeguarding yield and livelihood. We have worked with these pesticides and confident of its performance. Opting for any alternative may have impacted our input costs and overall production.'

 

Pest and disease control is critical for maintaining the quality and safety of our food supply. The continued use of these 24 critical pesticides is a necessary step as these pesticides are also used as mixture with relatively new products for resistance management against potentially resistant weeds, insects and diseases.

 

Insect pests can create crop damages between 20 – 30 % including grains stored in the warehouses. Pesticides are also used as smart fumigants for grain storage to protect crops from storage insects in wheat, rice, pulses and oil-seeds.

 

Union Government has already approved use of drones for safer and efficient use of pesticides. Pest and disease control is critical for maintaining the quality and safety of our food supply. Pesticides are carefully designed to target specific pests and diseases, and their use is strictly regulated to ensure that they do not harm non-target organisms or the environment.

Ministers and high-level representatives from India and the European Free Trade Association (EFTA) States (Iceland, Liechtenstein, Norway, and Switzerland) gathered in New Delhi today to discuss the prospects of resuming their negotiations towards a Trade and Economic Partnership Agreement (TEPA).

 

The high-level delegations were composed of Shri Piyush Goyal, Minister of Commerce & Industry, Consumer Affairs & Food & Public Distribution and Textiles of India; Jan Christian Vestre, Minister of Trade and Industry of Norway; Helene Budliger Artieda, Swiss State Secretary at the State Secretariat for Economic Affairs SECO; Martin Eyjólfsson, Permanent Secretary of State of Iceland at the Ministry for Foreign Affairs; Kurt Jäger, Ambassador and Permanent Representative of Liechtenstein to EFTA, WTO and the UN in Geneva; and Henri Gétaz, Secretary-General of the European Free Trade Association.

 

The meeting provided an opportunity for both sides to exchange views on the state of play of their negotiations and explore ways to advance the talks. The participants acknowledged the challenges posed by the current global economic and trade environment, as well as the need to address the bilateral trade and economic partnership issues in a constructive and pragmatic manner. Both sides agreed to continue their efforts to resolve all outstanding issues and work towards deepening and strengthening the economic partnership, while contributing to a more inclusive global trading system.

Tunisia's state grains agency is believed to have purchased about 75,000 tonnes of soft wheat in an international tender on Wednesday, European traders said.

 

Traders said they believed the wheat was bought in three 25,000 tonne consignments.

 

One consignment was said to have been sold by trading house Finagrit at an estimated $304.80 a tonne c&f and two consignments were bought from trading house Viterra at $309.89 and $311.19 a tonne c&f, traders said.

 

Results reflect assessments from traders and further estimates of prices and volumes are still possible later.

 

Finance for the purchase is being provided by the African Development Bank, which is among agencies assisting Tunisia with food purchases recently in the face of the country’s financial difficulties. Wheat can only be sourced from countries eligible to participate in the bank’s tenders, which basically excludes much of east Europe and the Black Sea region.

 

An offer for 50,000 tonnes of Russian-origin wheat was said to have been made in the tender at $310.00 a tonne c&f but was rejected, traders said.

 

Shipment was sought between June 5 and July 5, depending on origin selected for supply, they said.

India improves in the logistics ranking of the World Bank by jumping 6 places to Rank 38 out of 139 countries in the 7th edition of Logistics Performance Index (LPI 2023). India has been taking numerous initiatives since 2015 under the visionary leadership of the Prime Minister Shri Narendra Modi to improve its logistics efficiency. The World Bank has acknowledged India’s efforts towards increasing logistics efficiency. On 4 out of 6 LPI indicators India has seen remarkable improvement on the back of various initiatives being implemented over the past few years.

 

This is a strong indicator of India’s global positioning, with this development being powered by our Government’s laser focus on reforms for improving logistics infrastructure. In October 2021, the Government of India launched the PM GatiShakti National Master Plan (PMGS-NMP) towards a coordinated approach, leveraging technology, for infrastructure planning and development. PMGS envisages breaking silos among different Departments / Ministries in States / UTs by combining all relevant data on a National Master Plan and State Master Plans (portals) respectively. It is a GIS based tool which integrates existing and proposed infrastructure initiatives of different Central Ministries, to ensure first and last-mile connectivity, for seamless movement of people and goods. At the heart is intense communication and extensive data sharing among Central and State agencies promoting collaborative approach. Through the power of technology and collaborative efforts of concerned agencies put together, PM GatiShakti addresses the emerging needs of transforming the logistics landscape due to factors like rapid urbanization, changing energy choices, e-commerce, need to develop resilient supply chains etc.

 

 In September 2022, the Prime Minister launched the National Logistics Policy (NLP) which acts as a guiding document for States / UTs seeking to formulate logistics policy (19 States / UTs have notified their logistics policy). The policy is centred around upgradation and digitisation of logistics infrastructure & services. Further with focus on bringing efficiency in services (processes, digital systems, regulatory framework) and human resources, the policy puts marked emphasis on streamlining processes for seamless coordination, and reduction in overall logistics cost, besides incentivizing employment generation and skilling of the workforce. NLP lays emphasis on the shift towards more energy-efficient modes of transportation and greener fuels to reduce the carbon footprint. The policy also focusses on adopting the usage of multimodal transportation and complementing it by building multimodal logistics parks. Further it emphasized on the importance of targeted policy reforms to improve time spent by cargo at port, airports, and multimodal facilities since most of the delays occur at these locations.

 

 The Government of India also invested in trade-related soft and hard infrastructure connecting port gateways on both coasts to the economic zones in hinterland.  Technology has been a critical component of this effort, with implementation under a public-private partnership of a supply chain visibility platform, which has contributed to remarkable reductions of delays. NICDC’s Logistics Data Bank project applies radio frequency identification (RFID) tags to containers and offers consignees end-to-end tracking of their supply chain. Its implementation started in 2016 on the Western part of India and was scaled up to Pan India level in 2020.  With such initiatives of transparency, visibility, and ease of doing business, there has been significant improvement in cross-border trade facilitation. 

 

Also, the Logistics Data Bank project promotes healthy competition amongst the ports as it provides information on performance benchmarking, congestion, dwell time, speed, and transit time analysis. Over a period, it has also become a repository of data & information relating to the logistics industry and the same is shared with the stakeholders through monthly, quarterly, and annual reports as a source of data for decision making and improving logistics efficiency. The LPI report appreciates the Logistics Data Bank which reduces inefficiencies while connecting hinterland to ports.

 

At a sub-National level, the Department for Promotion of Industry and Internal Trade (DPIIT) has been conducting LEADS (Logistics Ease Across Different States) study since 2018 which helps to identify and resolve logistics inefficiencies and improve trade facilitation across supply chains. On a national level, India has notified Productivity Linked Incentive (PLI) Scheme for boost to creating global champions in manufacturing, PM Mitra Textile Parks, Bulk Drug Parks, other areas of manufacturing and 43 Towns of Export Excellence meticulously focusing on specific sectors for exports and provision of related infrastructure. Resolving the logistics gaps / bottlenecks will help decrease the logistics cost and will lead to increment in logistics efficiency which will contribute to ongoing reforms aimed at India becoming a global manufacturing / production hub in the coming years.

 

Further other initiatives like Sagarmala which aims to improve connectivity to ports and reduce cargo dwell time and Bharatmala which focussed on improving road connectivity of major corridors have played a pivotal role in improving India’s logistics efficiency. The LPI index is a perception-based survey conducted across select stakeholders dealing with respective countries.

 

Arohi Prajapati from Dang Ahwa Farmer Producer Company Limited, an FPO from the tribal area, said, 'Our main focus is on Ragi, Little Millet and Finger Millet. We are maintaining our production with 332 small and marginal tribal farmers'. Prajapati said adding 'We have introduced 7-8 millet based products. We are getting a 90% loan from the government to set up our Primary Processing Unit to improve our production.'

 

According to Trupti Shah, Gujarat Chamber of Commerce and Industry, 'To encash on the opportunity in the global market, India is working hard to increase the acceptability of millets as primary breakfast serials'. Pertinently, millets have always been a traditional food of rural India. 'We are the largest producer of millets in the world but we are only the fifth largest exporter of this commodity'. According to Shah millets are important because being rich in calcium, protein and antioxidants they can ensure food security. Shah said, 'The government is aiming to export 30,000 metric tonnes of millets this year out of which 766 metric tonnes will be the share of Gujarat'. She revealed that Minimum Support Price (MSP) and Special Crop Blocks are the main incentives that are currently being provided to millet farmers.

 

Jowar, Bajra, Ragi, Little millet and Finger millet are the main millets that are prevalent in Gujarat. Said Vinod Pate from Vavechi Sarhad Farmer Producer Company Limited, a Farmer Producer Organization (FPO) in Banaskantha, Gujarat, 'We are focussing on local markets only as there are very few opportunities for us to tap into the global export market. One major problem that we are facing is that the big corporations are offering us prices lower than the prevailing APMC prices. According to data released by the Agriculture and Processed Food Products Export Development Authority there are around 25 large exporters of millet in the country includng Eco Export, Rkd Agro Export, M.B. International, Magnus overseas among others.

 

Arohi further added, 'We focus on the training of local farmers which is why we hire mostly locals, especially females as our workforce. But the problem is the number of FPOs in the region. Excess FPOs create unwanted competition and that hampers the goals of expansion and collaboration'.

 

Commenting on the need for the betterment of farmers, Vinod Patel said, 'It would be really beneficial for us if the government makes it mandatory for big exporting corporations to procure some amount of the millet produce from the small FPOs only'. Echoing similar sentiments, Prajapati from Dang Ahwa FPO suggested further strengthening of the supply chain with mandatory procurement from farmers. 'Additionally the farmers and the organizations need to understand that their representatives like CEOs of these FPOs should be well-trained so that they can navigate their way through the complex corporate system', said Arohi.

In a major breakthrough in agricultural practices, Kerala Feeds Ltd (KFL) has facilitated the production of five tonnes of maize within the state. The coarse cereal is a key ingredient used in making cattle feed. The grain was harvested at a farm located 18 km from its manufacturing unit in Thrissur.

 

The recent steep rise in maize prices prompted KFL to encourage local farmers to grow the crop, which is largely grown in Madhya Pradesh, Bihar, Maharashtra and Karnataka. The PSU roped in the Indian Institute of Maize Research (IIMR) headquartered in Delhi to provide training to the growers. The efforts paid off as C.A. Rajan of Annamanada initiated maize cultivation in his three-and-a-half-acre field. The field was otherwise used to grow paddy.

 

Less effort needed

KFL provided the farmer high-yielding seeds and technological support. 'There were practical hiccups since it was my debut venture,' says Rajan, a retired government employee. 'Yet, the effort put into growing maize is less than that for paddy cultivation.'

 

The maize began flowering within 60 days. Rajan harvested and dried the crop in his house. He was assisted by wife Ambika and children Arun and Ashik. 'The stem of the maize is good fodder for cattle,' he said. 'That gives us extra income.'

 

The first five-tonne load of maize to arrive at the PSU near Irinjalakuda, was given an enthusiastic reception by KFL Chairman K. Sreekumar and top colleagues, besides representatives of the employees’ unions.

 

Sreekumar said farmers can earn a better income by growing maize, which does not involve high cost. 'KFL will undertake discussions aimed at enabling maize production in open fallow lands. It can be carried out through the district panchayats under their annual schemes,' he said.

 

KFL requires 6,000 tonnes of maize every month. 'Not that we can grow all of it in Kerala. But efforts in this direction can check the price of KFL’s products considerably,' the Chairman said.

 

KFL Managing Director B. Sreekumar said the PSU sought ways to grow maize indigenously, when the price of the crop began going through the roof. 'Our earnestness shows in our move to rope in the services of an institute as big as the IIMR,' he said. 'We are holding discussions to broaden the cultivation of maize to other areas of the state.'

 

Farmers going in for two paddy crops a year, are being encouraged to go for maize cultivation. As they would be given high-yielding seeds and technological support, the PSU expects more farmers to enter maize farming.

 

KFL, founded in 1995, manufacturers products for various breeds of cows.

India’s horticulture sector has proven to be more profitable and productive than the agricultural sector and has emerged as a rapidly growing industry. According to the Agricultural and Processed Food Products Export Development Authority (APEDA), India ranks second in fruits and vegetable production in the world after China. The country's advantage lies in being a low-cost producer of fruits and vegetables because of a combination of factors such as favourable agro-climatic conditions, availability of labour, and low input costs. As a result, fruits and vegetables account for almost 90% of the total horticulture production in the country.

 

Horticulture contributes around 30.4% to the Gross Domestic Product (GDP) while using only 13.1% of the gross cropped area, making it a significant player in India's agricultural growth. In recent years, the total horticulture production in India has even exceeded the total production of food grains, highlighting the potential of the sector. Horticulture not only contributes to the nutritional needs of the country but also creates additional job opportunities in rural areas, expands the range of agricultural activities, and generates higher incomes for farmers.

 

The productivity of horticulture has increased significantly from 8.8 tonnes per hectare (TPH) in 2001-02 to 12.1 TPH in 2020-21, leading to a sharp rebound in production and acreage, far outpacing foodgrains production since 2012-13. In 2021-22, the total horticulture production was around 341.63 million tonnes, with fruit production at around 107.10 million tonnes and vegetable production at around 204.61 million tonnes. With its vast production base in horticulture, there is ample opportunity for export, with fresh fruits and vegetables being a major contributor. APEDA estimates that the country exported fresh fruits and vegetables worth INR 11,412.50 crore during 2021-22. Bangladesh, UAE, Nepal, Netherlands, Malaysia, Sri Lanka, the UK, Oman, and Qatar are the major export destinations for fresh fruits and vegetables.

 

But despite the fact that India's horticulture sector is growing, the country's share in global trade remains insignificant, accounting for only 1% of the global trade in vegetables and fruits. Export growth is being undermined by production challenges, marketing challenges, inadequate transport infrastructure, fragmented supply chains, and insufficient storage facilities. These factors result in delays and wastage and discourage farmers from improving the quality of their produce.

 

The horticulture sector faces many production challenges that stop it from realising its full potential, such as small operational landholdings, lack of irrigation and poor soil management. Take for instance, small operational landholdings that limit the amount of land available for cultivation, which in turn limits the number of horticultural crops that can be produced. Limited land availability also affects crop rotation and the use of sustainable agricultural practices, as small farmers may not have the space to rotate crops effectively or implement sustainable soil management practices. This can lead to reduced yields and decreased soil fertility over time.

 

Insufficient access to water for irrigation, coupled with poor soil management practices such as over-tilling, over-fertilising, and monocropping, can reduce soil fertility, leading to lower yields and lower-quality produce. Lack of irrigation can be particularly detrimental during dry spells or droughts, where crops can quickly wither and die due to insufficient water supply. In contrast, excessive water can also be harmful, leading to waterlogging, root damage, and reduced yields. The Government is addressing the irrigation problem through the Pradhan Mantri Krishi Sinchayee Yojana (PMKSY), which aims to promote the development of irrigation infrastructure, expand the cultivable areas, and enhance on-farm water efficiency. Pests and diseases are another constant threat to horticultural crops. Insect infestations, fungal infections, and other diseases can spread quickly, leading to lower production levels and crop losses.

 

The limited outreach of farm insurance and farm mechanisation, combined with a lack of access to institutional credit for small and marginal farmers, contribute to lower investment in the sector. To ensure the flow of adequate credit, the Government sets annual targets for the flow of credit to the agriculture sector, Banks have been consistently surpassing the annual target. Notably, the Government provides interest subvention of 2% on short-term crop loans up to INR 3 lakh.

 

Climate change, such as changing weather patterns, droughts, floods, and other natural disasters, is another significant challenge that can lead to crop failures and losses, which ultimately affects the sector's overall output. Land lease constraints also pose a challenge, particularly for small farmers who may not have access to adequate land for cultivation.

 

The horticulture sector also suffers because of weak Farmer Producer Organisations (FPOs), which typically play a vital role in the development of the horticulture sector by providing farmers with access to markets, financing, and technical assistance. The weakness of these organisations contributes to the sector's challenges, limiting farmers' ability to benefit fully from the opportunities available. Recognising the need to increase the bargaining power of farmers, the Government is implementing an FPO formation and promotion scheme with a budgetary outlay of over INR 6,300 crore. This scheme aims to promote the formation and strengthening of FPOs and agri-entrepreneurship development among farmers.

 

The horticulture marketing chain faces its own set of challenges due to the perishable nature of fruits and vegetables, which makes it difficult to store and transport them efficiently. Poor logistics and lack of equitable cold storage and warehousing facilities contribute to delays and wastages. The cold storage distribution among the states is inequitable, with around 59% of the storage capacity (i.e., 21 MMT) present in the four states of Uttar Pradesh, West Bengal, Gujarat, and Punjab, and most of it is only for the potato crop. Top crops have a short shelf life because of the absence of storage and warehousing facilities, which causes price rises in the same months every year. There is also a lack of guidance for farmers on which crops to plant, resulting in overproduction of certain commodities and shortages of others.

 

The horticulture sector will have to take measures to improve its production and value chain system. To address the issues faced by the horticulture sector, Bayer and The Economic Times have come together to organise a national seminar called the India Horticulture Future Forum 2023 on 26 April 2023. Grant Thornton Bharat LLP is the Knowledge Partner for the event. The forum aims to deliberate on the future of Indian horticulture, focusing on developments, opportunities, and challenges in the sector.

 

Despite the numerous constraints faced by the horticulture sector, there are several opportunities for improvement. One such opportunity is the Agricultural Marketing and Farmer Friendly Reforms Index, launched by the NITI Aayog, which ranks states and union territories based on their implementation of provisions proposed under the model APMC Act, joining the e-NAM initiative, providing special treatment to fruits and vegetables for marketing, and tax levies in mandis.

 

The Government is also working on reducing crop losses through the Pradhan Mantri Fasal Bima Yojana (PMFBY), which provides comprehensive crop insurance coverage from pre-sowing to post-harvest losses against non-preventable natural risks. Another key initiative is the Centre's Cluster Development Programme which has the potential to revolutionise the value chain by enhancing its scale. The programme aims to promote the integrated and market-led development of pre-production, production, post-harvest, logistics, branding, and marketing activities by leveraging the geographical specialisation of horticulture clusters.

 

Meanwhile, the Ministry of Food Processing Industries has launched several schemes aimed at promoting the food processing industry in India, including the creation of cold chain infrastructure, agro-processing clusters, backward and forward linkages, preservation infrastructure, Operation Greens, and Mega Food Parks. These schemes provide various facilities to food processing units, such as storage, testing labs, and logistics, while also stabilising the supply and prices of perishable commodities and promoting their value addition. The Government has also introduced post-harvest infrastructure schemes to reduce post-harvest losses, a Land Lease Act to help legalise leasing and allow tenants access to insurance and credit, and Soil Health Cards to promote soil health.

 

India is globally recognised as one of the top producers of fruits and vegetables, and the horticulture sector has consistently performed well in terms of production. By implementing these measures, the horticulture sector can expand even further and generate increased profitability for farmers. This growth can also help meet the rising demand for fruits and vegetables, both domestically and internationally.

Indian Apex exporters body FIEO has announced that it has signed an MoU with Business Russia to promote trade and investments between the two countries.

 

It said the two organizations will cooperate to arrange exhibitions, buyers-sellers’ meetings, workshops, seminars and encourage enterprises to work in tandem with their counterparts for joint ventures.

 

The Memorandum of Understanding (MoU) was inked during a visit of a 50-member delegation of the agro and food processing sector to Moscow.

 

The delegation is 'exploring opportunities in diverse business ventures such as ready-to-eat meals, fish meal, animal feed, soyabean apart from conventional products,” said N K Kagliwal, Board Member of FIEO (Federation of Indian Export Organisations).

 

Kagliwal is leading the business delegation.

 

He added that exporters are looking to increase agro and processed food exports from about $750 million to over $3 billion in the next three years.

 

About the rupee-ruble trade mechanism, he said it is 'moving forward, but the pace is slow'.

 

FIEO Director General Ajay Sahai said that exporters, importers and bankers on both the sides have to do a little extra work to resolve the issues.

 

A direct exchange rate between rupee and ruble will help streamline the process in a big way,' Sahai said.

 

He added that huge trade deficit is a concern, but it is also an opportunity to push exports from India to Russia.

 

'We have to diversify exports to automobiles and auto components, electronics, medical devices, solar cells, textile, food and agriculture etc,' he said.