Flour millers have, so far, imported about 14,000 tonnes of wheat under the advance authorisation scheme for processing into wheat flour ( atta) since November 2022 when flour export, otherwise banned, was allowed under the scheme, according to official sources.

 

Small-scale millers and traders argue that this is a small amount compared to the demand for wheat flour from the expat community, as only large players, with adequate infrastructure, have been in a position to benefit from the advance authorisation scheme.

 

Some have made a case for opening up of exports of wheat flour, so that all millers can benefit from it, with adequate restrictions to ensure there was no domestic shortage or price rise.

 

Favouring big firms

'The advance authorisation scheme may help a couple of big companies, such as ITC, who have the infrastructure to import wheat, process it and re-export in the form of atta. But the process is so cumbersome that normal traders are not interested,' a Delhi-based miller, who did not wish to be named, told businessline.

 

Official sources confirmed that most of the import under the advance authorisation scheme for the export of wheat flour had been done by a handful of players and the amount was lower than anticipated.

 

India banned the export of wheat in May 2022 and wheat flour and semolina three months later as it feared a shortage in the domestic market due to crop loss.

 

However, in November, the government allowed wheat flour to be exported under the advanced authorisation scheme which allows export only on pre-import of wheat by the exporter to be used as input. 'The government should allow wheat products export, particularly atta, as the Indian diaspora needs its badly. Atta cannot be found anywhere else,' said Pramod Kumar, president of the Roller Flour Millers’ Federation of India.

 

He said millers were not averse to any quantitative restrictions placed by the government on exports or setting of a minimum export price for shipment of atta to ensure adequate domestic availability. 'The Indian diaspora are not getting atta to make their rotis and this needs to be looked into. The government can allow small packs of 10 kg atta,' he said.

India's exports may see tepid growth this year as the country's major export markets are forecast to decline sharply in 2023, the government said.

 

Growth of global trade fell in 2022, 'and is expected to be still lower in 2023 with a further decline in volume and value of trade on the back of slowing global output,' India's Ministry of Finance said in monthly economic report.

 

High frequency indicators suggest monetary tightening has started weakening global demand, the report said.

 

'This may continue in 2023 as various agencies have forecasted a decline in global growth,' it added.

 

Besides monetary tightening, uncertainties from the lingering pandemic and ongoing conflict in Europe may further dampen global growth, said the monthly economic report released on Thursday.

 

While inflation risks look set to diminish in 2023/24, geopolitical tensions and consequent supply chain disruptions may not, it added.

 

Despite the prospect of tepid export growth, the International Monetary Fund (IMF) and the World Bank project India to be the fastest-growing major economy in 2023, the report said.

 

The IMF projects India will grow at 6.1% in 2023 while the World Bank estimates the country's growth for next year at 6.6%.

 

The report said that, if El Nino predictions are accurate, monsoon rains in India could be deficient leading to lower agricultural output and higher prices.

 

The Reserve Bank of India is mandated to keep retail inflation within its tolerance band of 2%-6%. Data released last week showed India's annual retail inflation in January rose above the central bank's upper threshold for the first time in three months to 6.52% from 5.72% in December.

India does not plan to lift a ban on broken rice exports and cut a 20% tax on overseas shipments of white rice as the world's biggest exporter of the grain tries to keep a lid on domestic prices, two government sources said on Thursday.

 

New Delhi's rice export curbs will force buyers, especially in Asia and Africa, to pay more for the staple that has become expensive in the last few weeks.

 

India banned overseas shipments of broken rice and imposed a 20% duty on exports of various other grades in September 2022 amid concerns over production due to below-average monsoon rainfall in key growing states.

 

'Rice exports didn't slow down despite the 20% export duty, and that's why we believe that there is no reason to reduce or scrap the duty,' said a senior government official, who declined to be named in line with official rules.

 

India's rice exports rose 3.5% to a record 22.26 million tonnes in 2022. That was more than the combined shipments of the next four largest exporters: Thailand, Vietnam, Pakistan and the United States.

 

'We can't resume broken rice exports just because somebody in China or any other country wants it as a raw material to make ethanol or cattle feed. We'll rather prefer our domestic industry consuming it,' the official said.

 

China was the biggest buyer of India's broken rice, with purchases of 1.1 million tonnes in 2021.

 

India will also extend its rice export curbs due to apprehensions that the El Nino weather phenomenon might hit this year's monsoon rains.

 

'We don't want to take a chance. We've limited wheat stocks but ample rice stocks, which we can use if the weather throws any big surprise,' the official said.

 

Indian farmers plant rice, the most water-thirsty crop, in June and July, when monsoon rains lash the country.

 

'Our restrictions have not deprived the world of rice, and at the same time, we've been able to maintain adequate stocks,' said another government source directly involved in decision-making. 'We'd like to continue with the same arrangement.'

The Government has approved the integration of 101 agricultural produce marketing committee (APMC) mandis (markets or yards) into the electronic platform e-NAM, which is expected to bring the total number of such mandis to 1,361 by March 31. More mandis joining the platform will likely boost its turnover in current fiscal from over Rs.51,000 crore in 2021-22.

 

In the current fiscal, 260 mandis have so far joined the electronic National Agriculture Market (e-NAM) platform, bringing the total to 1,260. Spread over 22 States and 3 union territories, 2,40,500 traders and 1,08,237 commission agents have registered on the electronic platform. About 1.75 crore farmers have registered, along with 2,433 farmer-producer organisations (FPOs). The platform allows online trading in 203 agricultural and horticultural products.

 

The government is planning to enrol private mandis that are ready to join the platform, which the State government may be requested to facilitate, sources said. However, as there are many mandis in the private sector that are not keen to join e-NAM as they are dealing with one commodity for their own purposes, the plan has not taken off.

 

Platform of Platforms

In July last year, Agriculture Minister Narendra Singh Tomar launched the Platform of Platforms (POP) within the e-NAM portal in Bengaluru. With the introduction of POP, farmers are facilitated to sell their produce outside their State borders as it increases digital access to multiple markets and buyers. It has brought transparency to business transactions with the aim of improving the price search mechanism and quality commensurate price realisation, officials said.

 

As many as 41 service providers from different platforms are covered under POP, facilitating various value chains services like trading, quality checks, warehousing, fintech, market information, and transportation. The PoP has created a digital ecosystem, benefitting from the expertise of different platforms in different segments of the agricultural value chain.

 

As of December 31, 2022, total trade of 69 million tonnes worth Rs.2.42 lakh crore, of which one-fifth was only in the last fiscal, has been recorded on the e-NAM platform since its launch in 2016.

 

'On a daily basis, over 70 per cent of the commodities that are put on sale are either partially or fully sold on the same day, which is a good sign. However, a lot needs to be done, as the location of the e-NAM auction hall inside the mandi should be well advertised and more farmers should first try the online option before moving to a commission agent,' said a former top official of the agriculture ministry.

Union Agriculture and Farmers Welfare Minister Shri Narendra Singh Tomar today inaugurated the four-day National Horticulture Fair on Innovative Horticulture for self-reliance and to showcase the latest technologies developed by the Indian Institute of Horticultural Research, Bengaluru, under the Indian Council of Agricultural Research (ICAR), for the benefit of productive farmers and other stakeholders. In his address through video conference, Shri Tomar said that it is a well established fact that Horticulture plays an important role in doubling the income of farmers and providing essential nutritional security. Rapid increase in production and availability of Horticultural crops will help in bridging the gap of nutritional security of the country.

 

Union Minister Shri Tomar said that Horticulture production has increased 13 times from 25 million tonnes in 1950-51 to 331 million tonnes during 2020-21, which is more than the food grain production. Constituting 18% of the area, this sector contributes about 33% of the gross value to the agricultural GDP. The sector is being considered as a driver of economic growth and is gradually turning into an organized industry linked to seed trading, value addition and exports. Horticulture has a significant contribution in the export of agricultural products worth more than Rs. Four lakh crore. Under the leadership of Prime Minister Shri Narendra Modi, the government gives priority to agriculture and farming, therefore, in the budget of the year 2023-24, many major provisions have been made for Agriculture and Farmers' Welfare. The objective of the budget is inclusive and comprehensive development of farmers, besides the poor and middle class, women and youth. It emphasizes on promoting modernization of Agriculture sector by linking agriculture with technology so that farmers can get wider benefits in the long run.

 

He said that Rs 2,200 crore has been allocated in the budget for the development of Horticulture sector, especially for AatmaNirbhar (self-sufficient) clean plants programme. With this provision, efforts have been made to promote the availability of disease free, quality planting material for high value horticultural crops. Along with this, the Horticulture sector will also get huge benefits through the Cluster Development Programme. The Prime Minister has taken the initiative to make Natural Farming a mass movement, for which a provision of Rs 459 crore has been made. In 3 years, 1 crore farmers will be given financial aid for Natural Farming, for which 10,000 bio input research centers will be set up. Budget provision has also been made for farmers to make full use of technology. FPO is a revolutionary step in the direction of raising the standard of living of Small and Medium Farmers, the benefits of which have started flowing to these farmers. Horticulture FPOs are also becoming beneficial for the farmers.

 

Shri Tomar said that on the proposal of the Government of India, the United Nations has announced the International Year of Millets 2023, for which he called for maximum publicity and increasing the consumption of millets. Shri Tomar said that Agri Startups are also working fast in this direction. He called upon the farmers to be helpful in reducing imports and increase exports and contribute in solving the challenges. He expressed confidence that this horticulture fair will create awareness among farmers/stakeholders about latest technologies on horticulture crops for sustainable production and increase the scope for processing and export promotion to make India a global player in the Horticulture sector.

 

Shri Tomar appreciated that IIHR being one of the premier institutes in the country, is known for conducting basic research in horticulture crops to ensure sustainable and economic development of farmers at large and the technologies developed at IIHR are contributing more than Rs. 30,000 crore annually in the ever-growing horticulture sector. The institute is working on 54 horticulture crops and has developed more than 300 varieties and hybrids of horticulture crops for the benefit of various stakeholders, which are popular in North-Eastern states and other regions. The institute has done remarkable work by linking biodiversity with the livelihood of custodian farmers of jackfruit and tamarind and this model can be replicated to other horticultural crops. The Institute has started work on exotic fruit crops (Kamalam, Avocado, Mangosteen, Rambutan) which will help in reducing imports, as well as the new variety of watermelons developed by the Institute will help in reducing the import of its seeds. Shri Tomar urged upon the scientists to sincerely take it up as a challenge to reduce imports.

 

Union Minister Shri Tomar said that under protected cultivation, pollination with the help of bees in melon and ridge gourd has impressed many people and it needs to be further increased for the benefit of hi-tech horticulture. Farm mechanization, from seeding to marketing, for onion production will help needy farmers. The effort to ensure availability of seed-planting material through SBI Yono Seed Portal is commendable. This has made it possible to reach the seeds of horticulture crops to the farmers of 28 states. He expressed satisfaction that more than 150 technologies have been licensed through Agri-Innovate, the commercial arm of ICAR, generating an annual production of about Rs 4 crore.

 

The program was presided over by Dr. A.K. Singh, Deputy DG (Horticulture Science). On this occasion, APEDA General Manager Shri R. Ravindra, Dr. Baldev Raj Gulati, Director, ICAR-NIVEDI, Dr. S.K. Singh, Director, IIHR, SPH Vice President Dr. C. Ashwath, Organizing Secretary Dr. R.K. Venkat Kumar were among dignitaries present. Shri Sushant Kumar Patra, Shri Pinku Debnath, Shri G. Swami, Shri Sangram Kesari Pradhan, Ms. Vidya, Shri Siddharthan and Shri Polepalli Sudhakar were given the Best Farmer awards. The guests released souvenir and a handbook on 'Vegetable Production Techniques'.

Agricultural and Process Food Export Development Authority (APEDA) is participating in the 28th edition of Gulfood 2023 being held in UAE. In order to augment trade, India has been participating in GULFOOD which is a platform that connects food and beverage sectors around the globe, providing ample of opportunities to Indian exporters. Over the years APEDA has participated in Gulfood and brought a strong contingent of suppliers from Indian diaspora. In an area of appx 600 sq. mtr, more than 50 Indian exporters from the different categories like women entrepreneurs, Start ups, merchants and manufacturers showcasing agricultural, dairy, pulses and meat-based produce with focus on Millet and its products through APEDA pavilion, are being showcased.

 

The India Pavilion was inaugurated by Shri Pashupati Kumar Paras, Union Minister of Food Processing Industries along with Ambassador of India H. E. Sunjay Sudhir, Dr. M Angamuthu, Chairman, APEDA, Shri Sanoj Kumar Jha, Additional Secretary, Ministry of Food Processing Industries, Mr. Muktanand Agarwal, Director, Ministry of Agriculture & Farmer’s Welfare, officers of APEDA, Indian Embassy, CGI, other stakeholders from Centre & State & exporters.

 

APEDA is organizing promotions, tasting campaigns, sampling of millet products & biriyani, arranging B2B interactions between start ups, exporters with identified Super markets, awareness cum capacity building programs for Start ups, FPOs and Exporters in Millets producing States, mobilizing start-ups for export promotion of value-added products in the Ready-to-Eat (RTE) and Ready-to-Serve (RTS) category such as flour, noodles, pasta, flakes, pan cakes, ready to eat breakfast cereals mix, biscuits, cookies, snacks, sweets, ready to cook mixes like dosa, idly, khichri, daliya, etc. 

 

 In Gulfood organized from 20th – 24nd February 2023, there is participation of 5000 companies from 125 countries. In the International Year of Millets (IYOM) 2023, India is participating in GULFOOD with the theme focused on export promotion of millets and its value added products. Indian Pavilion is promoting around 100 delegations of exporters. A Millet gallery has been prepared to showcase Millets and its products by the start ups and new entrepreneurs to provide them a platform to showcase their quality products.

 

The Indian pavilion at Gulfood 2023 is one amongst the largest pavilion at the show to cater food products exports to more than 125 countries participating in the event. 

 

APEDA has signed a MoU with Government of UAE through its nodal agency Al Dhara Holding SP LLC for procurement of food and food products from India as well as to sell to buyers in UAE as a part of UAE food security strategy and DP World FZE, a subsidiary of Government of Dubai (A leading provider of worldwide smart end-to-end supply chain logistics, enabling flow of trade across the globe). The MoU signed between both the countries will promote the exports from India to UAE and strengthen the trade further.

 

GCC  is  India’s major export destination in majority of agricultural and processed food products sectors such as floriculture, fruits and vegetable seeds, fresh onions, fresh vegetables, walnuts, fresh mangoes, fresh grapes, other fresh fruits, betel leaves & nuts, processed fruits, juices & nuts, pulses, sheep/goat meat, processed meat, dairy products, natural honey, groundnuts, jaggery & confectionery, cereal preparations, milled products, alcoholic beverages, miscellaneous preparations, basmati and non basmati rice, wheat, cashew kernels etc. accounting for 42.77% share in APEDA’s agri exports to West Asia-GCC countries.  Export of APEDA’s scheduled products in the UAE market had grown from $69.52 million in 1987-88 to $1604.76 million in 2021-22.

 

India and UAE are trading partners since several decades. India is the largest producer of a range of agricultural products and has been catering to the global import requirement of agricultural products of UAE. 

 

India ranks 8th with share of 2.33% in the global agri exports. India’s total Agri Export is USD appx. 50 billion in 2021-22 with a contribution of more than 51% share by APEDA’s agricultural and processed food products export in the Indian agri export basket during 2021-22. UAE is one of our top export destinations. In India’s export of APEDA products, the major products exported during the referred period are non basmati rice, basmati rice, buffalo meat, wheat, maize, miscellaneous processed items, cereal preparations, groundnuts, processed vegetables, processed fruits, juices & nuts, fresh onions etc.

 

The two nations signed the historic Comprehensive Economic Partnership Agreement (CEPA) on 18th February 2022 which strengthened the strategic partnership & aimed at boosting the merchandise trade between the countries to $100 billion over the next five years. 

 

There is a shifting paradigm in export of agri products to UAE, the top ten potential products exported to UAE has been changing trends paving way to new additional products in the last few decades, conclusively giving ample opportunities for a range of 15-20 products to put on strong foothold in UAE market. GULFOOD 2023 is a gateway to GCC, West Asia, Europe & Africa.

The emerging markets and developing economies are expected to account for around 80 per cent of the global growth this year and the next. Of this, India alone is expected to contribute over 15 per cent, said the International Monetary Fund’s Managing Director Kristalina Georgieva on Wednesday.

 

Terming India’s strong economic performance a ‘bright spot’, Georgieva said that beyond being the global growth engine, India is uniquely positioned to bring countries together.

 

'At a time of heightened uncertainties for the global economy, India’s strong performance remains a bright spot. So, it’s fitting that Group of Twenty finance ministers and central bank governors will gather in Bengaluru this week,' she said.

 

The Second Finance and Central Bank Deputies Meeting under India's G20 Presidency began Wednesday. Finance ministers and central bank chiefs from G20 nations will join the meeting on Friday.

 

The meeting in the Nandi Hills summer retreat is the first major event of India's G20 presidency and the war in Ukraine is likely to feature prominently during the proceedings.

 

Russia’s military operation on neighbour Ukraine dominated headlines for most of 2022, with global growth, already marred by inflationary pressures, taking a hit.

 

The IMF said that while this will be another challenging year, it could represent a turning point with inflation declining and growth bottoming out.

 

'Indeed, while our latest projections show global growth slowing to 2.9 per cent this year, we anticipate a modest rebound to 3.1 per cent in 2024,' Georgieva said.

 

The First G20 Finance Ministers and Central Bank Governors (FMCBG) meeting under the G20 Indian Presidency scheduled later this week is expected to address some of the key global economic issues.

 

It is expected to cover issues such as strengthening multilateral development banks to address shared global challenges of the 21st century, financing for resilient, inclusive, and sustainable 'cities of tomorrow,' and leveraging Digital Public Infrastructure (DPI) for advancing financial inclusion and productivity gains.

 

The sessions will also cover issues related to global economy, healthcare, and international taxation.

 

The discussions in the G20 FMCBG meeting scheduled on February 24 and 25, to be jointly chaired by Union Finance Minister Nirmala Sitharaman and RBI Governor Shaktikanta Das are intended to provide a clear mandate for the various work streams of the G20 Finance Track in 2023.

 

To further the cause of debt restructuring, the IMF, World Bank, and India’s G20 presidency are convening a new Global Sovereign Debt Roundtable.

 

'This week in Bengaluru, we will meet in-person for the first time—and pave the way for creditors, both public and private, and debtor countries to work together, assess the existing shortcomings and best ways to tackle them,' she said.

India faced challenges during the Covid-19 pandemic but has recovered 'strongly' and can achieve 8% growth through a stronger private sector, land and agriculture reforms, and ensuring credit gets to small enterprises, among others, said David Malpass, president of the World Bank.

 

This is the right time for India to attract investment amid a global diversification of supply chains and manufacturing, he told ET in an interview, calling for a focus on making the country competitive. Malpass is in India to attend a meeting of G20 finance ministers and central bank governors. He met Prime Minister Narendra Modi and finance minister Nirmala Sitharaman on Wednesday.

 

On global monetary tightening, the outgoing World Bank chief said interest rates were abnormally low over the past decade and the world should plan on this normalising. He warned that developing countries, in particular, are facing much higher financing costs and interest rates on their debt.

 

Supply chain diversification

 

Malpass also said the world should do more about climate change, particularly in the area of adaptation.

 

The World Bank is working on debt restructuring for those countries that have unsustainable levels of debt, 'which in the current environment (is) a high percentage of the countries,' he said. It 'is clear now that there had been too much dependency by Europe on Russia for energy and too much dependency by the world on China,' and a healthy diversification was underway.

 

India could benefit from some of this supply chain and manufacturing diversification. 'I think there's good potential for India to attract more... I really think that this is a moment where India can make progress,' said Malpass, underscoring the areas where policy changes would help.

 

The country needs to focus on competitiveness, and that means regulatory policies that boost skills to encourage investment, both domestic and foreign, he said, reiterating the World Bank's strong support for India.

Israel's handing over of the strategic port of Haifa to the Adani Group is a reflection of the trust that the country has on India, Israeli ambassador Naor Gilon said on Wednesday.

 

At a media briefing, the envoy also said that both India and Israel are keen on finalising the proposed free trade pact as it could further boost overall bilateral trade ties.

 

Gilon indicated that there could be a forward movement on the Free Trade Agreement (FTA) during the upcoming 'high-level' visit.

 

Describing defence ties between the two countries as very strong, he said Israel has an advantage to support India in its efforts to become self reliant in defence manufacturing because of the 'long-standing' trust in the area between the two countries.

 

On the Adani Group acquiring the Haifa port last month, Gilon said it was sign of Israel's trust on India and it could boost bilateral trade. It was a very important move from our side as Haifa is a strategic port, he said.

 

The Adani Group last month acquired the strategic port of Haifa for $1.2 billion and vowed to transform the skyline of this Mediterranean city as part of its decision to invest more in the Jewish nation.

 

The Port of Haifa is the second largest port in Israel in terms of shipping containers and the biggest in shipping tourist cruise ships.

 

In his remarks, the Israeli envoy also said that there is a great potential to expand cooperation in areas of renewable energy, smart mobility, agriculture, healthcare, water and cyber and homeland security.

India’s corn (maize) exports have slowed down a tad over the last few days but new demand has now emerged with a few African countries scouting for the coarse cereal, trade sources said.

 

'African countries, particularly in the east, are looking to source corn from India in view of low freight charges,' said a New Delhi-based trade analyst, without wishing to identify.

 

These countries, however, are seeking smaller lots, another area where India has an advantage since it can ship such consignments at a competitive price. Corn is sought for both food and feed purposes.

 

‘No direct enquiry’

'We have heard African countries are looking for Indian corn but we have not got any direct enquiry,' said New Delhi-based exporter Rajesh Paharia Jain.

 

'Usually, Dubai-based traders export to Africa. We hear the Africans want but no direct order has come to us,' said Mumbai-based MuBala Agro Director Mukesh Singh.

 

Though demand for Indian corn is good, deals have slowed down this week, traders said. 'Last week, we got good orders from Vietnam. This week, movement is slow,' said M Madan Prakash, Agri Commodities Exporters Association (ACEA) President. 

 

Higher than MSP 

This year, Indian corn has met with good demand from South-East Asia and Gulf countries in view of freight charges dropping. This has now encouraged African countries to source their needs from India. 'It makes sense to ship in containers as their charges have declined in view of a slowdown in the West,' said the analyst.

 

Indian corn is quoted at $308-311 a tonne to South-East Asia, while exporters are getting the commodity delivered at ports at Rs.23,000-24,000 a tonne. 

 

The weighted average price of corn is Rs.2,163.77 a quintal currently against Rs.2,222.3 a week ago and Rs.1,921.76 during the same period a year ago. Prices are higher than the minimum support price of Rs.1,962 a quintal fixed for this crop year to June. 

 

On the Chicago Board of Trade, corn ended at 680 cents a bushel ($266.7 a tonne) for delivery in May on Tuesday. Corn prices have gained over two per cent in February.

 

Record high output

'Prices have dropped for delivery at Tuticorin port as the crop harvested in Tamil Nadu has begun arriving,' said Prakash. 

 

'Corn is a crop that is available round the year with harvest taking place in one State or the other. However, trade is flat in view of demand being slack now,' said Jain.

 

'Corn demand has been good for two months now. Some are still busy fulfilling the demand. With kharif arrivals almost over, some are doing with old stocks,' said Singh.

 

A record high kharif corn production, estimated at 34.61 million tonnes (mt) by the Ministry of Agriculture, has aided exports of the coarse cereal. 

 

Lower global production

According to the International Grains Council (IGC), Argentina is quoting corn at $314 and Brazil at $310, while the US is offering at $300 (all free-on-board). 

 

The IGC has forecast this year’s global corn production at 1,153 mt against 1,220 mt a year ago. The Food and Agriculture Organization has estimated it at 1,153 mt versus 1,211.8 mt. Production is lower this year as the crop has been affected in Europe, Russia and the US. 

 

During the current fiscal, 19.53 lakh tonnes (lt) valued at $653.36 million have been exported during the April-November period of the current fiscal. In 2021–22, 36.90 lt were exported at a value of $1.02 billion. 

 

Bangladesh is the largest importer of Indian corn during the period, buying 11.5 lt, while Nepal purchased 2.7 lt and Vietnam 2.3 lt during the period.