Exports of Bengal gram or desi chickpea (chana) have picked up in recent months on robust demand from countries such as Bangladesh and Iran, among others. This is even as procurement by Nafed has gained pace, while prices continue to rule below the minimum support price of Rs.5,335 per quintal across mandis in the key producing States.

 

According to the latest data, exports of desi chana saw an almost 10-fold growth to 52,495 tonnes in February 2023, as compared to 5,373 tonnes in the same period last year, data compiled by IGrain India said. 'With prices ruling below MSP, the resulting export parity, coupled with lower transportation costs to Bangladesh when compared to other origins such as Canada and Australia, led to higher shipments,' said Rahul Chauhan of IGrain India.

 

Bangladesh purchased over 47,518 tonnes in February. Similarly, Iran, Malaysia, Sri Lanka and the UK, stepped up purchases in the month, while other large buyers such as the UAE and Qatar saw a dip in volumes. 'Desi chickpea procurement by Nafed has been good, above 13 lakh tonnes(lt) so far. This has provided good support to the market price. Exports have been much better than last year and shipments to Bangladesh were especially strong. Ramadan was early this year, and so we saw good demand in February,' said Harsha Rai, Vice-President -- Sales, at Mayur Global Corporation, an international broker of pulses.

 

Overall shipments of chana during April-February of 2022-23 were up at over 1.26 lt, an increase of 195 per cent over the same period last year at 42,941 tonnes. Bangladesh has been the largest buyer at over 53,733 tonnes during this period, followed by the UAE at 34,296 tonnes and Iran at over 28,366 tonnes.

 

According to APEDA data, India’s total exports of all categories of pulses during April-February has almost doubled at over 6.44 lt, compared to the same period last year at 3.42 lt. In value terms, India’s pulses shipments during the April-February period of FY 2022-23 were higher by around 74 per cent at $555 million over the same period last year at $318 million.

 

Meanwhile, the procurement of desi chana has picked up, with total purchases by Nafed exceeding 13.76 lt valued at Rs.7,343 crore as on April 25. Procurement in Maharashtra has topped 5.48 lt, while it has crossed 3.76 lt in Madhya Pradesh. In Gujarat, procurement stood at over 2.50 lt, while in Karnataka it has inched up to over 72,318 tonnes. In Andhra, chana procurement stood at 56,406 tonnes, Telangana at 50,238 tonnes, and in Rajasthan it stood at 20,545 tonnes.

 

According to the second advance estimates of the Agriculture Ministry, gram production in 2022-23 is seen at 136.32 lt, ahead of the targeted 135 lt. Last year, production stood at 135.44 lt.

 

Despite rising procurement and growing exports, prices remain below the MSP of Rs.5,335 per quintal across mandis. In Rajasthan, the modal prices of gram ranged between Rs.4,009-4,600 across mandis, while in MP modal prices stood at between Rs.4,525 and Rs.4,750 per quintal across mandis.

Union Minister of Commerce & Industry, Consumer Affairs, Food & Public Distribution and Textiles, Shri Piyush Goyal said that the Open Network for Digital Commerce (ONDC) of tomorrow will be a transformational engine across the world and not only in India during his address at 'Enabling Bharat 2.0', a one-day workshop conducted by ONDC today in New Delhi. The Minister said that he is optimistic about a significant growth of ONDC in the next few months. He invited all e-commerce companies, big and small, to join ONDC and be part of this new bazaar that reimagines digital commerce.

 

He mentioned that ONDC will promote local languages, products, and cultural heritage, and create opportunities for small businesses. He said that small artisans and workers can offer better quality through ONDC and also earn better without having to pay commission for their products. He emphasized that ONDC will foster healthy competition, benefit consumers and contribute to the overall growth of the digital commerce ecosystem in India.

 

He said that the Prime Minister believes that our ability to develop depends on our ability to leverage technology. He said that monolithic e-commerce platforms will never be able to provide the services of the kind that a network of platforms like ONDC can offer. The Minister highlighted the various sectors that may benefit from ONDC like farmers who can access bigger markets and demand better prices for their products, students who can compare prices of books and online courses, people who can avail health services at the best prices, etc.

 

He emphasized on the need to create systems that benefit everyone and create opportunities for all. He said that the efforts are being undertaken to ensure that e-commerce becomes an engine of growth that empowers both buyers and sellers. The Minister highlighted that ONDC will unlock doors of opportunities in an inclusive manner for both big and small businesses, benefitting the entire value chain of commerce. He said that ONDC will provide a much larger market for sellers, without any preferred or priority sellers, ensuring equitable and fair treatment for all stakeholders. He said that ONDC will foster economies of scale, competition, and better pricing and quality, ultimately benefiting consumers. He said that ONDC is customer-centric, keeping in line with the vision of Mahatma Gandhi, where the customer is king.

 

The Minister emphasized that India can only be defined as Bharat, as it thrives in villages and small habitations across the country. He mentioned that ONDC is targeting this ‘Bharat’ for inclusive growth, ensuring that the benefits of e-commerce reach every corner of the country. He said that the Prime Minister Shri Narendra Modi firmly believes in solving challenges the Indian way and trusts the people of India to come up with innovative solutions. He said that ONDC was born in such a manner when the e-commerce sector was grappling with multiple challenges and small businesses were under threat. He highlighted the need for alternate ways to address these challenges of the e-commerce ecosystem, while balancing the interests of small retailers and businesses led to the evolution of ONDC.

 

The Minister outlined the unique features of ONDC, which aims to provide a win-win solution for both buyers and sellers. He said that ONDC, with its concept of using interfaces between various platforms, will open up more options for buyers, enhance price discovery and market opportunities for sellers, and also empower consumers to make informed choices. He said that this will result in more competition in the market and will not be limited through algorithms. He emphasized that ONDC will enable speedy, efficient, and real-time settlement of transactions, catering to hyperlocal and global needs simultaneously.

 

During his address, the Minister said that ‘Enabling Bharat 2.0’ converges with the commitment of making India a developed nation by 2047 and it is desirable to plan for the future. He said that digital public infrastructure is the need of the hour. He said that all the efforts of the government have been citizen centric as was evident during the COVID pandemic with the development and production of vaccines and the launch of Co-WIN Vaccinator App to monitor the distribution of vaccines to everyone in the country.

 

He cited the success of initiatives like the Unified Payments Interface (UPI) in the financial services sector, which has brought about a transformational journey and encouraged hundreds of fintech companies to innovate and promote financial inclusion. He said that UPI has brought about innovation in the fintech sector at a pace never seen before and promoted startups and unicorns through socialising valuation. He drew parallels with ONDC, which is based on a similar concept of interoperable interface, opening up more options for buyers and creating more competition, while providing ease of operation for sellers across multiple platforms and also providing them a bigger market.

 

The ‘Enabling Bharat 2.0’ workshop has been organized to find potential synergies and deepen collaboration among the various open protocol-enabled initiatives and generate awareness amongst multiple stakeholders.

Despite starting late, the procurement of wheat has jumped by a quarter to 17.08 million tonnes (mt) as of April 24 against 13.69 mt a year ago. Earlier at the start of the marketing season on April 1, delayed arrivals resulted in the procurement of the cereal being 23 per cent lower until April 16 before gathering momentum.

 

Higher procurement will likely help the government restore the reduced wheat quota under public distribution system (PDS) as a decision is expected next month.

 

The procurement has crossed the halfway mark of the targetted 34.15 mt and it looks like the target is all set to be breached this year by the way grains are arriving so far, said an official source.

 

1.7 m farmers benefit

According to official data, over 1.7 million farmers have benefitted so far from the ongoing procurement season started April 1, with expected outflow of Rs.36,301 crore at minimum support price (MSP) of Rs.2,125/quintal.

 

Punjab, which reported 17 per cent lower procurement until April 19, has also shown an increase in purchases by 3 per cent to 7.63 mt as of April 24 from a year ago. The target in Punjab has been fixed at 13.2 mt this year. It was Punjab which contributed the maximum wheat, more than half of total purchases made for the Central Pool last year and that saved the Centre when exporters and traders paid higher than MSP in other States.

 

Procurement in Madhya Pradesh is up by 66 per cent at 4.29 mt from 2.58 mt whereas the target is to buy 8 mt by June 15. Last year, the Centre could purchase only 4.6 mt against a target of 12.9 mt from the State.

 

Haryana has reported at 40 per cent jump at 5.06 mt from 3.61 mt a year ago and the largest wheat producing State Uttar Pradesh reported a 4 per cent increase in procurement at 86,030 tonnes as on April 24 from 82,578 tonnes in the year-ago period, official data show.

 

Among other States, the government has bought 25,072 tonnes in Rajasthan and 7,270 tonnes in Chandigarh. Gujarat is yet to purchase any quantity while Bihar has reported the procurement at 180 tonnes.

 

Govt to wait

Meanwhile, the government has decided to wait till a month by when the wheat procurement will be almost over to decide if the reduced allocation quota to 10 States, decided in May 2022 due to a drastic fall in wheat procurement, should be restored or not. As much as 6 lakh tonnes per month under the National Food Security Act (NFSA) wheat quota was replaced with the same volume of rice when the Centre revised the allocation last year.

 

The wheat stock in the Central Pool dropped to 8.35 mt as of April 1, which is the lowest in six years. The previous low was at 8.06 mt on April 1, 2017 as procurement dropped by 5 mt in 2016-17 season.

Tunisia's state grains agency has issued an international tender to purchase an estimated 75,000 tonnes of soft milling wheat, European traders said on Tuesday.

 

The origin was optional. The deadline for submission of price offers in the tender is Wednesday, April 26, they said.

India may be in for some tough negotiations on the agriculture front while trying to reach an agreement on its proposed free trade agreement with the UK, if one were to go by a House of Commons Committee (HCC) report.

 

In its fifth report of the 2022-23 session, the HCC has suggested to the UK government to not accede to India’s demand for cutting the duty (tariff) on milled rice, bringing imports of unmilled brown rice into UK under tariff as it is allowed duty-free now and resisting India’s efforts to weaken UK pesticide protections.

 

Other suggestions include seeking a cut in Indian tariff for dairy imports or getting tariff rate quota (TRQ), doing away with the 100 per cent agricultural infrastructure cess for alcohol and looking at 'labour abuses in the tea sector'. 

 

Undermining £900 m/year sector

The HCC said, 'India has a notable offensive interest as regards removing the UK’s tariff on milled rice. The UK Rice Association, which represents the processing industry, has argued that removing this tariff will not reduce retail prices (which are already low) but will undermine a sector worth £900 million per year that provides employment in several English regions.' 

 

The report pointed out the rice association’s argument, along with the Food and Drink Federation, that the UK should instead extend the list of varieties of unmilled (brown) basmati rice allowed to enter tariff-free. It said tariff rate quotas should be granted for other types of brown rice.

 

Key pesticide residue issues

The HCC, referring to a trade commentator’s argument, said allowing imports of more milled rice would result in quality and safety checks being carried out at the borders with attendant costs.

 

The report said there were significant issues around pesticide residues in Indian rice. Campaign groups have suggested that 'it is unlikely that the UK has the infrastructure and resources required to adequately test produce imported from India for pesticide residues'. 

 

HCC said UK’s Pesticide Action Network had said India’s pesticide protections are significantly weaker than the UK’s. There are shortcomings in the observance and enforcement of India’s rules. Consequently, India would have 'much to gain by negotiating to weaken UK standards on pesticide residues so that Indian growers are able to access the UK market and export produce that wouldn’t currently be permitted,' it said. 

 

Other interests

However, changes to the UK SPS standards and rules can only be achieved through legislation. It is, therefore, unlikely that any negotiated agreement would see a reduction in UK SPS standards, the report said. 'Meat and dairy producers indicate that the UK has interests regarding India’s sanitary and phytosanitary checks, which these sectors regard as overly burdensome,' the HCC said. 

 

Another significant UK offensive interest is in respect of removing India’s 150 per cent tariff on alcoholic beverages, which includes 100 per cent agriculture infrastructure development cess.  

 

Other UK interests include reducing India’s dairy tariffs or securing generous tariff rate quotas. India’s argument is that allowing dairy imports could impact micro, small and medium enterprises across a wide range of sectors, including agri-food. 

 

‘Labour abuses’

It is advocating safeguards, appropriate liberalisation timeframes and potential designation of affected sectors as 'sensitive', the report said.

 

The HCC said the Confederation of Indian Alcoholic Beverage Companies had, reportedly, argued that, in exchange for tariff concessions on UK whisky that is imported in bulk and bottled in India, 'the UK must remove technical barriers to Indian whisky imports'. 

 

The Confederation has argued that the UK 'must remove its condition that spirit must be matured for a minimum of three years to be called a whisky because that effectively rules out the bulk of exports from India'.

 

The HCC referred to the Business and Human Rights Resource Centre (BHRRC) drawing attention to 'ongoing violations of human rights and labour rights in India'. These include 'labour abuses in tea supply chains that include forced labour, failure to pay the minimum wage, gender discrimination and suppression of freedom of association,' it said. 

 

2 months’ time

The BHRRC has made it a case for trade liberalisation under an FTA being 'conditional on the mutual ratification and effective implementation of core UN and ILO (International Labour Organization) human rights conventions', the report said. 

 

'India has not ratified the core ILO conventions on Freedom of Association and Collective Bargaining. Neither has it signed the UN Convention Against Torture,' the HCC quoted the BHRRC. 

 

The Rishi Sunak government in the UK has two months’ time to respond to the House of Commons Committee Report. However, the HCC has welcomed the development that 'no longer' puts arbitrary deadlines on trade negotiations. 'While (the) Diwali date was unrealistic, it is positive that the (UK) Government has adopted an approach that evaluates the benefit of trade deal before finalising any agreement,' the report said.

Four products that are unique to Goa — bebinca, malcorada mango, seven ridge okra and Agasaim brinjal — have been published in the journal of the Geographical Indication (GI) Registry, which is the final stage in the process of obtaining a GI status for these items.

 

The products will officially have GI status in less than 3 months, following publication.

 

'This is the last phase of the registration process,' said Deepak Parab, the nodal officer for patent facilitation of GI tag in Goa.

 

A GI label indicates a product’s specific geographical origin and the qualities that stem from that provenance.

 

The department of science and technology is the nodal agency to undertake GI registrations for products unique to Goa. These are agricultural produce, handicrafts, food items and handloom articles. The department has designated the Goa State Council for Science and Technology as the facilitator for the work.

 

'After 90 days from the date of publication, the products will officially receive GI status. As a result, from the 91st day onwards, these products are deemed as registered and the GI certificate will be issued immediately,' he said.

 

The certificate will be issued by Chennai-based Geographical Indications Registry — the national body for GI status and registrations.

 

The next edition of the registry will feature the Goan cashew (processed kernel), therefore obtaining the special status for a total of five unique products of Goa, this year.

 

'Though the application for the Goan cashew (processed kernel) has been cleared, it has not yet been published due to some delays in filing the application. Once it is published in the next edition of the GI journal by May, it will acquire GI status,' Parab said.

 

Efforts are being made to acquire GI status for the fruit as well. The state government has therefore organised a meet on Friday for the Goa Cashew Growers’ Association to prepare an application for the Goan cashew (nut and apple). For which, cashew farmers from across Goa have been invited to prepare the pitch.

 

In addition, application for Goan sausage, Mussharat mango, Kunbi saree and handicrafts such as coconut carving and shell items, have also been filed for GI tag. Soon, the state will also seek GI status for korgut rice, Taleigao brinjal and manghilar mango.

The gucchi mushrooms from Jammu are all set to receive the GI tag. Primarily found in the foothills of the Himalayas, they are among the costliest mushrooms in the world with their price ranging between Rs. 20,000 to Rs. 50,000 per kg. Considered a superfood that is rich in vitamins, the wild mushrooms have a spongy texture and a savoury flavour. But what makes them special and what is a GI tag?

 

'The gucchi mushrooms have a very special flavour and their supply is extremely scarce, as they cannot be cultivated artificially unlike many other mushrooms. They are native to cold regions in the Himalayas, grow wild in forests and are difficult to source. Their procurement and supply is also regulated by authorities that own the land, further putting restrictions on their supply and adding to their limited usage and high price,' says Manas Dubashi, a mushroom farmer in Gurugram.

 

Not just rare produce like the mushrooms, GI tags are also given to iconic dishes and regional specialties. Recently Bihar’s famous delicacies ‘khurma’, ‘tilkut’ and ‘balu shahi’ have been pitted for the tag and their application accepted by the competent authority.

 

Khurma is a crunchy snack of fried flour which has been coated with sugar, pretty much like the shakarpara.Tilkut is a crunchy sweet made from sesame seeds and jaggery and balu shahi is a sweet that is crunchy from the outside and has a soft interior.

 

Understanding the tag

 

India has the most number of Geographical Indication (GI) tags for foods and agriculture produce. A GI tag defines the region of origin of a product and helps define what is ‘authentic’. The concept of GI tag was introduced in 2003 under the act of Geographical Indications of Goods (Registration and Protection) Act,1999. Darjeeling Tea was the first to be awarded the tag.

 

'GI tags bring in credibility and trust and define originality. It is similar to the kind of trust any brand name brings in. What it also does is restrict production of similar food items that may be packaged and sold with a similar name, if it’s not for a GI tag. For example, Champagne only comes from the eponymous region in France and all the other similar drinks are sparkling wine,' explains chef Sanjeev Kapoor.

 

'A GI tag impacts marketing and also protects heritage of an item. Take the example of pokkali rice which grow in saline water in Kerala and is not known so much but it would have been lost entirely if didn’t get a GI tag. Today it can be sold for ?200 per kg,' he adds.

 

A GI tag is an indicator that a particular product came from a region and possesses its qualities — of certain flavor, texture, and/or aroma that came about because of the region. Such a credit not only protects authenticity but also helps boost local commerce.

 

'The GI tag creates branding and much larger commercial interests which help the grower or farmer to get better prices for their hard-earned effort. It has a very positive impact on the food world since it allows the users to understand its core origin and the sheer benefits associated with it. It is important that our food ingredients should have specified GI tag for a lager interest so that the entire process is well defined. Right from origin to cultivation to the economics,' says chef Nishant Choubey.

 

A global benchmark

 

Granting a GI tag also helps local produce come in global limelight, further boosting commerce and also establishing their identity internationally.

 

'To me GI is an absolute celebration of regional India under the global spotlight just like Champagne and parmesan. A GI tag is a matter of great domestic pride but also a guard against misuse of identity of produce and an absolute promise of reputation world over,' says chef Varun Inammdar.

 

'Kashmiri kesar, Hyderabadi Haleem, Manipuri black rice, monsooned Malabar coffee, Rasagola from Odisha all have received the GI tag in the past identifying them as products originating in a given place,' chef Tarun Sibal explains with examples.

 

'More and more authentic, distinctive Indian products native to the country and rich in cultural heritage are now looking at GI tags to cement their position and origin. Be it the Khola chili from Goa or Ratlam’s sev, ' he adds.

 

Tagged in the recent past

 

The popular Banarasi paan and langda mango of Varanasi received the tag recently. Ramnagar Bhanta (brinjal), Chandausi’s adamchini chawal (rice), Hathras hing are other produces from UP to get the tag.

 

Murukku, a popular, crunchy snack that is a festive-favourite in Tamil Nadu also recently got the tag after almost a decade-long wait. Cumbum panneer thratchai (grapes), Marthandam honey are other food items from the state to be coveted with the tag.

 

Recently, the tag was also given to Bihar’s popular marcha rice which is known for its aromatic flavour.

Ramesh Rajah, President of the Coffee Exporters Association said, 'The higher value because of the profit in the global market has made up for the decrease in volume.' Prices in the international market rise due to the lower crop outlook in prominent yielding nations like Brazil in view of torrential rainfall.

 

For the next two quarters, India’s coffee exports are expected to go up by 10% year-on-year in value terms due to a shift to mid-premium coffee from expensive premium-quality coffee amid firm international prices, Rajah said.

 

Rajah predicted Arabica coffee prices to be approximately 200 cents per pound on the New York exchange, and $2,300 per tonne for the Robusta variety on the London exchange because of likely shortfall in supply in main producing countries such as Vietnam and Brazil as El Nino weather phenomenon are expected to disturb monsoon rainfall.

 

Globally, Brazil is the largest coffee producer followed by Vietnam, and Colombia, while India’s contribution to the global market is approximately 2.5-3.0%. India is an importer of raw coffee and an exporter of instant coffee.

 

Coffee exports for the last financial year ended March hit a record high for the second consecutive year at $1.126 billion against the $1.088 billion target fixed by the commerce ministry.

 

Ajoy Thipaiah, Chairman of the Coffee Committee of the United Planters Association of South India said, 'Exports are expected to be on par with the last financial year in value terms,' However, the volume of exports may remain low.

 

Data from the Coffee Board of India indicated that the exports of coffee diminished by 3.6% in volume to 398,000 tonnes in FY23 against 413,000 tonnes in FY22.

 

The market for Indian coffee is niche and preferred by countries such as Germany, Italy, and Russia.

 

Exports in 2023-24 (April-March) will depend on prices and coffee production in India. Globally, the prices are good. However, the delayed blossom showers in major plantations in Kerala, Tamil Nadu, and Karnataka may weigh on India’s coffee production this season significantly which raises concerns over export volumes.

The popular Basmati rice of Bundi is aiming for the prestigious Geographical Indication (GI) tag with the joint support of the National Bank for Agriculture and Rural Development (NABARD) and the Consortium for Industry Development and Awareness (CIDA) which held a one-day workshop for rice millers and other stakeholders to discuss the registration of the produce in Bundi on Friday.

 

CIDA and NABARD have jointly decided to file an application for the GI tag of the Basmati variety. At the workshop, a presentation was made on the history of the Bundi rice, evidence and documentation required for the GI tage to millers, district industry officials and other stockholders, said CIDA secretary Prasun Jain.

 

'No efforts made earlier by millers to apply for GI tag'

Due to the absence of the geographical marker, local millers were unable to export the product directly and had to depend on exporters from Haryana and Delhi, reducing the brand value. However, no efforts were made earlier by local millers to apply for the GI tag and CIDA initiated the process, he said.

 

The rice is produced in over 67,000 hectares in Bundi and is exported to Kuwait, Oman, Qatar, and Saudi Arabia as well as big businesses in India and abroad, CIDA president Dr Rohit Jain said. The rice recorded a business of Rs 1,800 crore in 2022, including Rs 1,400 crore through exports. Over 6,000 people were directly or indirectly employed in rice production in the district, he said. Famed as 'Dhan Ka Katora', production has increased from 52 lakh quintals last year to 80 lakh quintals in the current district, Jain said. The rice bears similar characteristics and quality of popular Basmati variants available in the country, he said. Neeraj Goyal, who presides over a Bundi rice business association, said that there were 26 millers currently operating in Bundi.

Although Tamil Nadu is a beautiful blend of different cultures and colourful traditions, traditional Tamil snacks like ‘Murukku’, ‘Seedai’, and ‘Adhirasam’ have a separate fan base. The town of Manapparai in the Trichy district is renowned for ‘Murukku’, which has received a Geographical Indication (GI) tag after almost a decade-long wait.

 

‘Murukku’ is very popular among travellers passing through Manapparai in Trichy City. The moderate-sized crunchy snack is made of a thick dough consisting of rice flour, urad dal, spices and salt and is double-fried for its flavourful crunch.

 

'Besides major festivals like Pongal and Diwali, Manapparai Murukku is also in demand on many other special occasions. People from foreign countries also visit the state to taste the traditional snack,' a worker said.

 

Speaking to News18, Muthu, a seller of Murukku products, said, 'We are happy to get a GI tag for Manapparai Murukku. Designation from Chennai’s GI Registry is a significant step in the right direction. We believe the GI tag has verified the special flavour and authenticity of Murukku. However, if we want to maintain the demand for this traditional snack in the market, we must modernize our manufacturing process. The Tamil Nadu government should provide necessary assistance in order to promote the cottage industry and the livelihood of the workers.'

 

The Manapparai Murukku Manufacturers, who represent almost 500 families working in Manapparai to produce Murukku, applied for the GI tag in 2014. According to the manufacturers, the quantity of Murukkus that can be mechanically produced will go up to 4-5 tonnes every day, as opposed to 50 kilograms per day earlier. 'However, since the shelf life is a major issue, we need to develop recipes that will help keep the snack fresh for at least a month, and advertise it extensively,' added the manufacturers.