India’s wheat production is unlikely to drop from the estimated record high of 112.18 million tonnes (mt) despite unseasonal rains lashing many parts of the growing regions, according to an official assessment. However, wary over a possibility of drop in yield or lower realisation by farmers, the government has advised not to harvest in a hurry.

 

About 10 per cent damage is estimated in those areas that were affected by lodging after hailstorms and high-velocity winds in last few weeks, according to Agriculture Commissioner PK Singh. However, he said the rain has helped improve yield in the late-sown crop in regions where there have been no hailstorms and strong winds.

 

High moisture

According to Gyanendra Singh, Director of Karnal-based Indian Institute of Wheat and Barley Research (IIWBR), wheat production could have gone to 115-116 mt this year had there been no unseasonal rains as the crop was in good condition everywhere. 'We advise farmers to keep the crop get dried on the field as with high moisture the harvest will not get the normal rate. There is even a chance of damage if it remains with high moisture for a long time,' the director said.

 

He said currently there are reports of 20-22 per cent moisture and it will come down to 10-12 per cent in the field itself after which wheat can be harvested.

 

Almost entire North-west and Central India, where wheat is grown, have been receiving unseasonal rains accompanied by hailstorms and gusty winds sporadically in past few weeks due to the Western disturbances.

 

On Monday, the agriculture commissioner reviewed the crop situation with officials of the major wheat-growing States. The country had wheat acreage of over 34 million hectares (mh) this year.

 

MP, Rajasthan harvest

In Madhya Pradesh and Rajasthan, 80 per cent of the wheat crop has been harvested and the damage could be minimal there. The worry is about 75 per cent area in Uttar Pradesh, Punjab and Haryana which had early or timely sowing, officials said.

 

State governments have reportedly informed the Centre about crop damage in 0.52 million hectares in Madhya Pradesh, Rajasthan and Uttar Pradesh while Punjab and Haryana are yet to convey the actual damage to the wheat crop. Even in those damaged areas, the extent is not more than 15 per cent, officials said.

The Agricultural and Processed Food Products Export Development Authority (APEDA) will hold detailed discussions with the All-India Rice Exporters’ Association, major exporters, experts and other stakeholders on the new code of practice (CoP) document the United Kingdom has come out with on basmati rice. 

 

APEDA will discuss the CoP documents and its provisions to analyse the short and long-term impacts on India’s basmati exports, if any. 

 

Responding to businessline’s report on UK’s new CoP for basmati triggering a controversy, APEDA said it was brought out by the British Retail Consortium and The Rice Association, UK, the representative organisation for the UK rice sector. 

 

Not regulatory document

'Its main aim is to promote the interests of members in all matters pertaining to the import, preparation, processing, packaging and marketing of rice. This has also been discussed with the Federation of European Rice Millers (FERM), AIREA and Rice Exporters Association of Pakistan (REAP),' the authority said. 

 

Stating that CoP was not a regulatory document, it said rather the associations had agreed with regard to basmati rice trade in the UK. AIREA, India’s major association engaged in basmati export, was involved in bringing out the CoP.

 

The scope of the CoP was limited to labelling of basmati rice sold in the UK and the code is voluntary. '...those choosing not to follow its provisions are required to meet the similar minimum legal requirements to ensure that their basmati rice is authentic,' APEDA said.

 

The authority said the CoP lists varieties that are currently approved by Indian and Pakistani authorities. It covers most of the popular basmati varieties notified under the Indian Seeds Act, 1966, provisions. The new CoP has included certain newly-notified basmati varieties.  

 

Deletion of 5 varieties

On the CoP deleting five varieties grown in India, APEDA said four varieties — Malviya Basmati Dhan, Pant Basmati 1, Vallabh Basmati 21 and Vallabh Basmati 24 — were not being cultivated. Thus, exports will not be affected. 

 

However, the deletion of Punjab basmati in the list seemed to be an error as India had no such notified variety. 'All the notified varieties having Punjab Basmati as prefix have some numeral as suffix in the varietal name like Punjab Basmati 1, 2, 3 etc and hence does not have an impact on Indian basmati exports,' it said. 

 

On dilution of the growing area, particularly the Indo-Gangetic Plains, APEDA said, 'The document has also referred to the February 2003 publication by the Food Standards Agency as the basis for the Code with the emphasis on ‘specific areas of Indo Gangetic Plains’'.  

 

On basmati Geographical Indication (GI) tag expert S Chandrasekaran questioning on APEDA not being consulted over the new CoP, the authority said 'it would have been prudent on the part of the UK Association to discuss the CoP document with APEDA as owner of the basmati GI tag which is also registered in UK.'

 

A geopolitical issue

APEDA has registered Basmati name and logo as Certification Trade Mark (CTM) in the UK, it pointed out. On DNA fingerprint, the authority said the Food Safety and Standards Authority of India has framed  the requirement of purity and it will be implemented soon.  

 

APEDA concurred with AIREA views that the new CoP will strengthen India’s hold in the UK basmati market. 

 

When contacted, Chandrasekaran said basmati GI is a geopolitical subject involving the country’s boundary and sovereignty. Though the CoP said the code is voluntary, it says those not following it must 'meet the same minimum legal requirements' for the rice to be authentic.  'The voluntary nature is being indirectly made   mandatory,' he said. 

 

The new CoP has strategic implications on the ownership of the fragrant rice.  'If a precedent is created by modifying the label of basmati (by any other organisation or foreign organisation), it encourages similar actions in the future if it suits a particular interest,' Chandrasekaran said.

 

Nepal opposed India

On the deletion of varieties, he wondered what if in the future the CoP deleted an active commercial variety, though it has now done away with only a non-commercial one. 'It will have serious ramifications in North-West India. Also, by accepting the DNA testing protocol today, India will lose the right to question the delisting of varieties in the future,' the expert said.  

 

On the dilution of the Indo-Gangetic Plain description, Chandrasekaran said Nepal has opposed India’s application for a Basmati GI tag in the European Commission.

 

'There must be some reasons for the change of position in the area.  For example, the Code of Practice of Basmati Rice (CoP), United Kingdom, issued in June 2017 did not consider Himachal Pradesh and Delhi as growing areas,' he said.

 

APEDA’s application with the GI Registrar included Himachal Pradesh and Delhi from the start. 'Why did CoP 2017 drop these areas? Dropping of the varieties and the growing areas is creating a precedent where in the future, other countries could do the same,' he said.  

 

Also, the DNA testing protocol developed by the University of Bangor, Wales, is funded by DEFRA.  'It is imperative to challenge the protocol.

Union Minister of Commerce and Industry, Consumer Affairs, Food and Public Distribution and Textiles, Shri Piyush Goyal said that logistics has become the centerpiece of India's policy making in its journey towards becoming a developed nation and a leader in international trade. He also said that express delivery of services has transformed through innovative ideas under the leadership of Prime Minister Shri Narendra Modi.

 

During his address at the ICRIER Release of the Report on Express Delivery Services in New Delhi, the Minister praised the Indian Council for Research on International Economic Relations (ICRIER) for a report which aims to improve the overall logistics system by partnering with industry and government. He said that ICRIER acts as a bridge between government and industry. He added that it must work with industry experts on the roadmap for fruitful realization and implementation of the recommendations of the report.

 

The Minister noted that the growth in overall exports over the last two years despite challenges like inventory pileup, high raw material costs, freight issues, and the COVID-19 pandemic's impact is commendable. He said that the government is making a conscious effort to change the mindset of looking at things from the old perspective and living in hesitations of history. It is the result of these efforts that the overall exports from India in 2022-23 are expected to be about US$ 765 billion, he said.

 

The Minister said that the government is focused on taking digital connectivity across the length and breadth of the country, with 4G and broadband internet reaching almost every corner of the country. He observed that the seamless digital connectivity enabled India to deliver services on time during the COVID period by facilitating work from home. He said that this express delivery of services through an expansive digital network created over the last 8 years must be duplicated in the logistics sector for timely delivery of goods.

 

He said that Express Delivery Services is yet to come to terms with the huge potential India holds. The Minister noted that scale, efficiency, and building blocks through technology must be utilized to bring down the cost in logistics. He said that the government is taking steps in this direction through massive infrastructure development through PM GatiShakti for smarter and faster planning and implementation of projects, Unified Logistics Interface Platform and dedicated freight corridors.

 

He highlighted that when the Prime Minister said that India can be the trusted partner to the world at the G20 Summit, the message went out that India is ready to do business with its transparent and rule based ecosystem and its highly talented and committed human resource. The Minister said that trust, transparency, and talent will help us in our trade.

 

He said that the Prime Minister's vision for India is big and bold, and the entire world is looking up to India with hope and confidence that the country can deliver. He appreciated the role played by youth in the startup sector and encouraged them to think big and work towards making India a developed country.

 

The Minister said that the Prime Minister’s innovative ideas, including transporting liquid medical oxygen by trains and empty containers by air transport during the COVID-19 pandemic, led to a significant reduction in delivery time and saved numerous lives. He emphasized the importance of speed in determining the success of India and called for newer ideas and ways of doing work in the spirit of togetherness for the country.

India's goods exports touched $447 billion till the last count for 2022-23 fiscal year against $422 billion in 2021-22, commerce and industry minister Piyush Goyal said on Tuesday.

 

The final export and import data for 2022-23 would be released by mid April. At present, the ministry is in the process of collating the data. The trade data for goods comes with a lag of about 15 days and in the case of services data, it is 45 days.

 

Goyal said services exports are estimated to cross $320 billion in 2022-23.

 

Growth in merchandise goods would be around 6% for the last fiscal, he said, adding that it has grown from '$422 billion to $447 billion at last count (as the) final numbers are still awaited'.

 

He said the country's exports are growing despite global challenges such as rise in raw material prices, restrictions in exports of certain products like wheat and Russia-Ukraine war.

 

'The final numbers (exports of goods and services will be closer to $765 billion... I would not be surprised if we actually go up to $772 billion which we figured while drawing the road map for $2 trillion of exports by 2030,' the minister said.

 

If the data reaches $772 billion, Goyal said, 'then, I will probably reset the $2 trillion target also'.

 

Speaking at an event, he also said that the express delivery services sector had huge potential for growth in India.

 

'To bridge the cost in logistics, we need to look at scale, efficiency and the building blocks through technology,' he added.

 

Going by the strong foundation which the government is building in terms of high expenditure for developing modern infrastructure, internationalisation of trade , free trade agreements and growth in exports of goods and services, the economy may reach $35-40 trillion by 2047, he added.

The Food Safety and Standards Authority of India (FSSAI) has issued an order regarding the usage of ‘words’ along with 'curd' in local languages for the purpose of labelling after it has notified the provisions for omission of the term 'curd' from the Standards of Fermented Milk Products vide notification dated Jan 11, 2023.  

 

The food businesses can now use word from the local language like 'Curd (Dahi)' OR 'Curd (Mosaru)' OR 'Curd (Zaamut daud)' OR 'Curd (Thayir)' OR 'Curd (Perugu)’ etc.  

 

According to the FSSAI, ‘General Standard for Milk and Milk Products’ under the ‘Food Safety and Standards (Food Products Standards and Food Additives) Regulations, 2011 clearly lay down guidelines for use of dairy term(s)in the nomenclature of dairy products including milk, milk product or a composite milk product and related prohibitions for such use in non-dairy products.  

 

'Accordingly, when term 'curd' was written along with 'Dahi' in the said regulation, it was restricting its use for non-dairy products. As many representations were received recently on omission of the term 'curd', from the Standards of Fermented Milk Products, it has been decided that FBOs may use the term Curd along with any other designation (prevalent regional common name) in brackets on the label,' reads the order.  

 

The order added that ‘accordingly, Curd can also be labelled as per following examples: 'Curd (Dahi)' OR 'Curd (Mosaru)' OR 'Curd (Zaamut daud)' OR 'Curd (Thayir)' OR 'Curd (Perugu)’.

 

It is pertinent to note that the food authority has notified the changes through the Food Safety and Standards (Food Products Standards and Food Additives) First Amendment Regulations, 2023 wherein under the standards for fermented milk products applied on fermented milks, including, heat-treated fermented milks, concentrated fermented milks and composite milk products based on these products, the food authority has amended that the name 'Fermented Milk? may be replaced with designations Dahi, and Yoghurt if the product complies with the relevant provisions of Standard specified for these products.

 

'Provided further that in case of fermented products complying with the relevant provisions of Dahi, any other designation (prevalent regional common name) may be used together with the term ‘dahi’ in brackets on the label,' reads the amended notification.

 

These amendments shall come into force on August 1, 2023, the notification added.

India has been planning to relax norms to procure wheat from farmers amid untimely rainfall and hail which damaged the crop just before harvesting in key producing central and northern states, government officials and traders told Reuters.

 

The world's second biggest wheat producer plans to buy 34.15 million tonnes of new-season wheat from local farmers to shore up state reserves after purchases dropped 53% last year to 18.8 million tonnes because of a poor harvest.

 

New season wheat has started arriving on the market, but the harvest has lost lustre in some districts because of the recent rainfall, said a senior government official, who declined to be named.

 

'We have allowed Madhya Pradesh state to procure wheat even with 10% loss in lustre. If required we would take call for other states and other parameters such as moisture,' the official said. The source didn't wish to be identified in line with official rules.

 

Madhya Pradesh is the second biggest producer of wheat after Punjab.

 

Wheat crop has also been damaged in Punjab and Haryana because of rainfall in the past few days and the government would be forced to make similar changes in the procurement rules for these states, said a New-Delhi-based trader with a global trade house.

 

Punjab, Haryana and Madhya Pradesh accounted for more than 98% of the total wheat procured in 2022.

 

Crop with lower lustre was getting sold at a big discount to good quality crop in the market and the government buying would stop this distress sale, the trader said.

 

The state-run agencies have procured 260,000 tonnes of wheat from farmers as on April 2, up from the last year's 46,000 tonnes, another government official said.

 

'Buying would gain momentum in the next few weeks. It didn't pick up desired momentum because of rainfall,' the official said.

 

The government-backed Food Corporation of India (FCI) buys wheat from farmers at state-set prices to run the world's biggest food welfare programme.

India and Malaysia have announced a major breakthrough in their bilateral trade relations. The two Asian countries can now settle trade in Indian Rupee (INR) in addition to the other currencies currently in use.

 

In July last year, the Reserve Bank of India (RBI) made the announcement to allow merchants to trade in INR with other countries with the aim of supporting the growth of global trade and the interests of the global trading community in INR.

 

The announcement comes a day after India’s ministry of commerce launched the Foreign Trade Policy (FTP) 2023, with the intention of making the rupee a global currency. This is a significant move towards India’s goal of increasing the acceptability of the rupee in the international market.

 

A currency is deemed to be “international” if it is widely acknowledged as a medium of exchange across the globe. While India has been successful in conducting trade in rupee with a limited number of countries, it is actively collaborating with several others to extend its reach.

 

India International Bank of Malaysia (IIBM) has operationalized the mechanism by opening a special Rupee vostro account through its corresponding bank in India, the Union Bank of India. This mechanism is expected to benefit traders on both sides as they can directly trade in INR and save on currency conversion spreads.

 

The facility enables exporters and importers from India and Malaysia to invoice trade in INR, resulting in better pricing for goods and services traded. IIBM has said it will facilitate traders in Malaysia for settlement of this trade in INR. Banks from 18 countries have opened 30 special vostro accounts for trade in INR, with Sberbank and VTB Bank, the largest and second-largest banks of Russia, respectively, being the first foreign lenders to receive approval.

 

The new mechanism is also aligned with Malaysia’s Foreign Exchange Policies (FEP) which allows Malaysian banks to undertake settlement of international trade in goods or services in any foreign currency, subject to the rules and regulations of Bank Negara Malaysia.

 

The development of trade between India and Malaysia in INR is an indication of the growing acceptance of the currency internationally. India has been able to conduct rupee-denominated trade with a few nations and is working closely with several others to expand it. The move towards making the rupee an international currency will give Indian businesses a competitive advantage in the global market.

 

The new mechanism will also reduce transaction costs and currency risks for traders, making trade between India and Malaysia more attractive. It is expected to boost economic activity between the two countries and provide a major fillip to their trade relations.

China has stepped up purchases of pulses such as kidney beans and Kabuli chana (chickpea) from India in recent years to meet its growing demand. In the 2022-23 fiscal, China emerged as the biggest buyer of Indian pulses, displacing UAE, with the import value exceeding $100 million for the first time.

 

APEDA data reveal that Chinese imports of Indian pulses stood at $102.41 million during the April-January period of 2022-23 over $89.03 million in the entire 2021-22, a 15 per cent growth. During this period, India’s overall pulses exports increased to $476 million, an increase of 25 per cent over $379 million in the previous fiscal.

 

Chinese purchases of Indian pulses in sizeable quantities, which started during the Covid pandemic, have sustained and grown multi-fold over the past couple of years. There is a five-fold increase in the volume of pulses exports to China from India over the past four years, while in terms of value, they have more than trebled during the last three years ( see table).

 

Changing food habits

'China is coming up as a very big consumer of pulses in the past few years. Their food habits are changing and consumption is increasing year by year,' said Harsha Rai, Vice President – Sales at Mayur Global Corporation, an international broker of pulses.

 

Chinese purchases of Indian pulses in sizeable quantities, which started during the Covid pandemic, have sustained and grown multi-fold over the past couple of years. There is a five-fold increase in the volume of pulses exports to China from India over the past four years, while in terms of value, they have more than trebled during the last three years ( see table).

 

Changing food habits

'China is coming up as a very big consumer of pulses in the past few years. Their food habits are changing and consumption is increasing year by year,' said Harsha Rai, Vice President – Sales at Mayur Global Corporation, an international broker of pulses.

B20 Conferences in the North East Region of India in partnership with the Confederation of Indian Industries (CII), Department for Promotion of Industry and Internal Trade (DPIIT), Ministry of External Affairs and North Eastern State Governments under India’s G20 Presidency have been organized for exploring partnerships among business communities. The conferences would aid the development of critical sectors of the economy in the North East and would facilitate economic growth.

 

The B20?is the official G20 dialogue forum representing the global business community. It is among the most prominent engagement groups in G20, with companies and business organizations as participants.

 

The Northeast region of India has been of significant focus for B20 India Initiatives, with four conferences planned across the region to showcase the vast potential and opportunities within the region. The first three conferences held in Imphal, Aizawl, and Gangtok have been successful in their objective of highlighting the untapped potential of the Northeast.

 

Opportunities for Multilateral Business Partnerships in Agriculture and Food Processing, Tourism, and Information Technology will be the main theme of the forthcoming conference, which will take place in Kohima, Nagaland, from April 4–6, 2023. On this theme, addresses and plenary sessions will be held at the conference, along with business to business (B2B) and business to government (B2G) meetings. The state administration will bring attention to the major developments and activities in these fields while highlighting investment opportunities.

 

After the delegates arrive on the initial day of the three-day conference, dinner and a cultural program will take place at the Capital Cultural Hall. The B20 conference will be held on day two, followed by B2B and B2G meetings. The state government has also organised excursions and site visits. This includes a tour of the mini-Hornbill festival, an excursion to a WWII museum and a visit to a Heritage Village, Kisama Village. The third day will bring the event to a close with a trip to the Kohima War Cemetery and the departure of the participants from Kohima.

The Ministry of Commerce and Industry has told Parliament that during the current financial year (April 2022 – January 2023), the agricultural exports have registered an increase of 6.04% amounting to USD 43.37 billion over the exports of USD 40.90 billion during the corresponding period of the previous financial year i.e April 2021 to January 2022.  

 

However, during the financial year 2021- 22, India’s agricultural export touched the highest ever level of USD 50.21 billion.

 

The statement of Commerce Ministry added that the Government has been monitoring  export performance including that of agricultural and processed food products in the current financial year i.e. 2022-23 vis a vis 2021- 22 however no targets have been fixed yet for export for the year 2023-24.

 

According to the Ministry, the Government is utilising the District as Export Hub (DEH) Initiative to achieve the objectives of Agriculture Export Policy. Under the DEH initiative, products including agricultural and processed food products with export potential have been identified in all 733 districts across the country and a State Export Strategy has been prepared in 28 States & UTs.

 

'To address the issue of stakeholders’ participation in the decision-making process for export promotion activities, the Department of Commerce has established Export Promotion Forums (EPFs) for individual products under the aegis of the APEDA. The EPFs have representation from trade/industry, line ministries/departments, regulatory agencies, research institutes, state governments etc. In all 9 EPFs have been formed for rice, banana, grapes, mango, onion, dairy products, nutri-cereals, pomegranate and floriculture respectively,' reads the statement by the Ministry of Commerce.  

 

The ministry stated that APEDA has also played an important role in opening of new markets for agricultural products in the recent past such as Canada, China, South Korea, Taiwan, Portugal, Indonesia and Iran.