At the conclusion of the seventh round of India-UK free trade agreement (FTA) negotiations and ahead of the eighth round scheduled in New Delhi next month, a senior industry expert in the UK believes there are encouraging signs of appetite on both sides to agree a deal and fully utilise its benefits. Syma Cullasy-Aldridge is the Chief Campaigns Director at the Confederation of British Industry (CBI) and has just returned after leading the group's first-ever business delegation to New Delhi and Mumbai aimed at unlocking opportunities of a potential FTA.

 

The Indian-origin campaigns chief for the industry body, which speaks on behalf of 190,000 UK businesses of all sizes and sectors, described the visit as 'really, really brilliant' in highlighting the immense scope for partnership and collaboration across key sectors.

 

'What really struck me was the opportunity and appetite on both sides for collaboration and partnership around key sectors like green finance, innovation and new technology - areas where there are skills and education on both sides,' said Cullasy-Aldridge.

 

'The seventh round was on here while we were in India. It's encouraging to see negotiations progressing and also encouraging to see appetite on both sides to make sure that we do agree [a trade deal] and then utilise it well,' she said.

 

The last round of talks concluded on February 10.

 

Cullasy-Aldridge highlighted a recent Cabinet mini-shuffle by British Prime Minister Rishi Sunak which brought the government's trade and business departments together under Secretary of State Kemi Badenoch and termed it a 'really good thing'.

 

'It means that you're looking at trade from a business perspective, having business working hand in hand with trade. That is a good thing because then you have better outcomes,' she said.

 

'We have an opportunity [post-Brexit] to forge our own trading relationships. There's a big global Britain ambition and India is the fastest growing economy in the world. There's opportunity for the UK to partner with India on that growth story,' she added.

 

According to the CBI, an India-UK FTA could boost trade with India by 28 billion pounds a year by 2035 and increase wages across the UK by 3 billion pounds. Its trade delegation earlier this month was very much focussed on the utilisation aspect of such a potential pact by businesses.

 

'The UK is obviously looking to take advantage in a post Brexit world of new trading opportunities and one thing that COVID taught us was that you need to diversify your supply chains, and everybody around the world knows that now,' said the executive, who has previously worked within the UK government's business department.

 

'Supply chains are incredibly complicated things and so, of course, it will take time. Meanwhile, we're very much up for working with the government to help with trade agreement utilisation because these shifts will happen more effectively through engagement with business,' she said.

 

She pointed to opportunities over India's G20 presidency and the corresponding B20 - or business segment - being led by the Confederation of Indian Industry (CII).

 

Asked about hurdles that CBI foresees in the way of an FTA which has already missed a Diwali 2022 deadline for completion due to political upheavals in the UK, Cullasy-Aldridge said there would always be some hurdles in any trade negotiation, asserting that they are 'incredibly complicated legal documents'.

 

'So, it's important to take the time to get them right. But I'm actually more interested in utilisation - how companies will use the trade deal once it is in place. And that's why things like trade delegations are so important, because it's about businesses on both sides understanding the opportunities so they know how they can make the most of it,' she said.

 

Official UK government data pegs India-UK bilateral trade at around 29.6 billion pounds a year, a figure expected to receive a major boost with an FTA both sides hope can be concluded this year.

After plateauing for two years, onion exports have accelerated thanks to the demand from West Asia. In the 2022-23 fiscal, India has so far exported 15.19 lakh tonnes of the bulb, as compared to the 15.38 lakh tonnes it had exported during the whole 2021-22 fiscal.

 

Exports account for around 10-15 per cent of the total onion produced in the country, with Maharashtra, Karnataka and Gujarat being the leaders. Kharif, late kharif and rabi onions are exported, and Indian onions have demand mainly from West Asia, Sri Lanka, Bangladesh, Malaysia and Nepal.

 

Suresh Deshmukh, a commission agent operating out of the Dindori’s wholesale market, said export orders have started pouring in, right from the start of the current fiscal. Indian onions at export markets are now trading at Rs 15-16/kg FOB, while the bulb is trading at Rs 10-11/kg in the domestic market. 'Quality-wise, we have no problem, and thus the demand for onions is good in the international markets,' he said.

 

While the Sri Lankan market has suffered from the economic collapse of the nation, demand from other countries has been picking up. Thanks to the back-to-back bumper crops, domestic and export-quality onions have been readily available. Over the last three fiscals, exports have been around 15-16 lakh tonnes.

 

Meanwhile, farmer organisations have asked for price stabilisation funds to ensure wholesale markets do not see a complete collapse of onion prices.

 

Maharashtra is the leader in the production of rabi onion, and farmers from Nashik take the production lead. Deshmukh talked about a possible collapse of prices once the new or summer onion hits the markets. This onion, which is transplanted in December-January, is harvested post-March. Thanks to the lower moisture content in the bulb, this onion is malleable for storage. Farmers generally store onions in their on-field storage structures to protect them from moisture and sprouting.

 

Deshmukh said thanks to the good rains, rabi acreage is at an all-time high, and the crop condition is also good. 'There are some reports of the corp being affected due to fungal diseases in some pockets, but that would not have much effect on the product,' he said.

The historical India-UAE Comprehensive Economic Partnership Agreement (CEPA) was signed on February 18, 2022 during the virtual summit attended by Indian Prime Minister Narendra Modi and President of the UAE Sheikh Mohamed bin Zayed Al Nahyan.

 

Marking a successful year of CEPA signing, a Special Business Event was organised by the Federation of Indian Chambers of Commerce & Industry (FICCI) in association with the Embassy of India, Abu Dhabi, Consulate General of India, Dubai and Dubai Chambers on Friday here.

 

The event was attended by more than 200 leading businesses from India and the UAE.

 

Addressing the gathering, Thani Al Zeyoudi, UAE Minister of State for Foreign Trade, spoke about the immense opportunities and advantages offered by CEPA.

 

Ambassador Sunjay Sudhir in his remarks mentioned that the business from both India and UAE have already started leveraging upon the duty waivers and enhanced market access offered under the CEPA.

 

The historical India-UAE CEPA is the first bilateral trade accord concluded by the UAE and India's first bilateral trade agreement in the MENA region. India-UAE CEPA is a wide-ranging agreement, covering all aspects of India's economic engagement with the UAE including Trade, Investments, Healthcare, Digital Trade Government Procurement, IPR etc.

 

CEPA has unleashed new opportunities in bilateral trade and it is expected to increase the bilateral trade in goods to $100 billion within five years and trade in services to $15 billion.

 

The impressive overall growth in bilateral trade is a true reflection of the early gains accruing from the agreement. During the first eight months from April-November 2022 of the current financial year, the bilateral trade between the two countries has grown to $57.8 billion from $45.3 billion same period last year, recording an impressive growth of 27.5 per cent in percentage terms and a notable increase of $12.5 billion in value terms.

 

During the same period, India's exports to the UAE saw a remarkable growth of 19.32 per cent, reaching $20.8 billion from $17.45 billion, an increase of $3.35 billion in value terms.

 

Besides, several other significant partnerships have been launched since May 2022 related to energy, food security, education and healthcare.

 

Talking to IANS, Chandu Siroya, Vice Chairman of Dubai Gold & Jewellery Group and owner of Siroya Jewellers, said that 'after CEPA it is very easy for us to source jewellery from India and sell to other countries, for example, if a customer was coming from any other country and they wanted to go to India they could not carry gold to India so they had to make the orders'.

 

'From the Indian perspective, as India is a huge country and the jewellery markets are all expanded in different states, now we can easily bring them in the gold souq and exhibit them to international clients. We at Siroya Jewellers completed 100 shipments in the last 9 months and we have imported about $85.6 million worth of jewellery, it's 2028 kilos after the CEPA agreement. I was the first who received the first shipment under the CEPA agreement from India to UAE,' he added.

 

Indian Ambassador Sunjay Sudhir said that this CEPA is helping to business groups in an exceptional manner. Business houses are the pillars of the success of the CEPA agreement. We have seen growth in bilateral trade and exports. New industries and approaching the UAE market after CEPA as tariff lines coverage is up to 95 per cent, which is an attraction for all. As UAE is the gate of the world, more investments are expected from both sides.

 

After CEPA many Indian big business giants are expanding their operations in UAE and TATA group is one of them.

 

Talking to IANS, Ankur Gupta (Head of corporate affairs & Growth, MENA region), said: 'I think CEPA has been extremely beneficial, I think over the last 5-6 years, in any case, the relationship between India and UAE had certainly enhanced a cross commercial business trade diplomatic and strategic ties as well. This is also reflected in the way the TATA group has been present in the UN and grown up.

 

'In 2013-14 we had 13 TATA companies, who were operating in the UAE, today we have 26 other companies and divisions that operate here. Today we have of upwards 5,000 employees here which is a large base across our infrastructure hospitality retail aviation businesses. Post CEPA TATA group enhanced its jewellery business, automotive, steel business and fashion brands.

 

'We are now looking at new areas like FMCG, aviation and insurance business here. In the jewellery business before CEPA we had 2 stores, now we have 6 stores and many others are in pipeline.'

 

The CEPA entered into force on May 1, 2022.

 

The agreement has been operating smoothly for over 10 months now. The businesses from both nations have already started leveraging upon the tremendous potential offered under the CEPA.

The country’s exports to the UAE, with which India has implemented a free trade agreement on May 1 last year, is expected to cross USD 31 billion during the current fiscal on account of healthy demand for sectors such as gems and jewellery, machinery and auto, an official said on Friday.

 

The government official said that the agreement is helping India to promote its outbound shipments to the UAE.

 

During June 2022-January 2023, India’s non-oil exports rose by 5 per cent to USD 15.2 billion as against USD 14.5 billion in the same period previous year. Imports during the period increased by 3 per cent to USD 16.8 billion.

 

As many as 6,057 certificates of origin have been issued in January to exporters to avail concessional duty advantage under the trade pact.

 

Certificate of origin is a key document required for exports to those countries with which India has trade agreements. An exporter has to submit the certificate at the landing port of the importing country. The document is important to claim duty concessions under free trade agreements. This certificate is essential to prove where the goods come from.

 

During June 2022-January 2023, gems and jewellery and electrical machinery exports to UAE rose by 16 per cent and 29 per cent to USD 3.8 billion and USD 2.6 billion respectively. During the period, automobiles shipments grew by 38 per cent to USD 475 million.

 

Other sectors which record healthy growth in exports include coffee, tea, spices, sugar, man-made staple fibres and edible vegetables.

 

On the possibility of rupee-dirham trade between the countries, the official said central banks of both the countries are discussing the matter and technical teams are working on the modalities.

Tamil Nadu Agricultural University (TNAU) on Wednesday released 23 new crop varieties. This includes 16 agricultural crops, three horticultural crops and four tree varieties. Besides this, the university introduced ten agro technologies and six farm machineries.  

 

Addressing media, TNAU Vice Chancellor V Geethalakshmi said, 'The new varieties include four improved varieties of kavuni CO 57 paddy, three pulses, two oilseeds, one maize, sugarcane and green manure crop and sunn hemp. In commemoration of International Year of Millets 2023, four new varieties such as Peal millet hybrid COH10, Sorghum K13, Kudiraivali ATL1 and Panivaragu ATL2 have been introduced.'

 

The horticulture crops include two varieties of Ridge Gourd besides a variety of jasmine. To help the state government’s afforestation plan, the university unveiled silk cotton, red sanders, casuarina and khaya trees. Farmers can procure the new varieties from the university. Earlier in the day, Geethalakshmi inaugurated a national level agrometeorological conference.

 

Speaking on the occasion, Geethalakshmi said farm yield has to increase to commensurate with the country’s rising population, without compromising on quality and nutritional value. 'Climate variability and climate changes are the biggest challenges, especially flood is a complex phenomenon in recent years. For instance, crops were ready to harvest in the Cauvery delta region, but a big rainfall affected the yield of crops recently. It indicates rainfall uncertainty.'

 

The three-day conference is organized by the Agro Climate Research Center of TNAU in collaboration with the Association of Agrometeorologists. Around 250 scientists from the Indian Council of Agricultural Research and India Meteorological Department among others are taking part.

In partial modification of the order dated November 3, 2021, the FSSAI has made an amendment with respect to the ‘Testing Charges’ for Fruit & Vegetable products and Cereals & Cereal products.

 

According to the FSSAI’s order, 'In case of Cereals and Cereal products including atta and maida and Vitamin, Mineral Premix for preparation of fortified food, additional Rs. 2000 may be added when fortified with iron, folic acid and Vit. B12. In addition, Rs. 2000 may be added if such products are also fortified with Zinc, Vit A, Thiamine, Riboflavin, Niacin and Pyridoxine, if declared on the label.'

 

Also, the FSSAI order added that in case of microbiological testing of food grain products, additional Rs. 500 may be added for each pathogen as applicable for that food grain product for ‘Testing Charges’ for Fruit & Vegetable products and Cereals & Cereal products.

 

The November 3rd Order stated that the Food Safety and Standards Authority of India (FSSAI) hereby prescribes the testing fees, which shall be uniformly applicable for both domestic and import samples drawn by Food Safety Officer, Authorized Officers, etc. and tested by laboratories notified by FSSAI and GST on these rates shall be applicable as per the orders of the Central Government, as amended from time to time while these revised testing fees shall be effective from December 1, 2021.

More than 1060 bidders participated and 3.85 LMT wheat was sold during the second e-auction organised by the Food Corporation of India (FCI) on 15.02.2023. The corporation offered 15.25 LMT Wheat stock during the auction.

 

In the second e-auction quantities ranging from of 100 to 499 MT had maximum demand followed by quantities of 500-1000 MT followed by 50-100 MT indicating that small and medium flour millers and traders actively participated in the auction. Only 5 bids were received for the maximum quantity of 3000 MT at one go.

 

Weighted average rate of Rs. 2338.01/Qtl was realised by FCI in the auction. Rs. 901 Cr was generated by FCI in the 2nd e-auction.

 

In order to address the rising price of wheat and Atta in the country, as per the recommendation made by the   Group of Ministers, FCI is offering wheat for e-auction. The sale of wheat through e. auction will continue throughout the country on every Wednesday till 2nd week of March 2023.

 

Govt. of India has also allocated 3 LMT wheat to Govt. PSUs/cooperatives/Federations like Kendriya Bhandar, NCCF and NAFED for sale without e-auction. The concessional rates for wheat to be lifted @Rs 23.50/ Kg and Atta to be issued  to public @ MSP not exceeding Rs 29.50 /KG under this scheme has  also been revised by GoI  @ Rs 21.50/Kg and sale of Atta from such stock @MSP not exceeding  Rs. 27.50 per Kg.

 

National Cooperative Consumers’ Federation of India Limited (NCCF) has been allowed to lift 68000 MT of Wheat stock under the above scheme across 08 states. Allotment of 1 LMT Wheat is made to NAFED and 1.32 LMT Wheat made to Kendriya Bhandar under this scheme to bring down the price of Atta across the country and sale of Atta  been operationalized by these cooperatives after lifting of stock from FCI.

 

Offloading of more than 25 LMT wheat stock out of 30 LMT earmarked for sale under OMSSD (D) in the market through OMSS (D) scheme within a span of two months through multiple channels will have impact to contain the inflationary price trend of Wheat and Atta and also stabilised price rise in food economy bringing relief to the common man sustaining the objective of scheme.

India has organised a special exhibition on the millets at the UN headquarters in New York to commemorate the 'International Year of Millets 2023'.

 

The focus of the exhibition launched on Tuesday by India's Permanent Mission to the UN was on the different kinds of millets grown in India, their nutritional value and health benefits, including information on calorific content.

 

The exhibition was attended by over a hundred delegates from the UN member states and senior UN officials. In her brief remarks, India’s Permanent Representative to the United Nations Ruchira Kamboj shared the reasons why India pursued making 2023 the International Year of Millets (IYM) and how millets were an important solution in the collective march towards the Sustainable Development Goals (SDGs).

 

This was followed by a launch video on the IYM and a special address by Deputy Secretary-General Amina Mohammed. The Co-Founder and Director of MRIDA Group, Arun Nagpal, shared his experiences on his journey with millets from the farm to the table. This was followed by a special address by the Chef de Cabinet of the UN Secretary-General Earle Courtenay Rattray, after which the exhibition was officially opened.

 

Millet-based savouries were the other attraction for the guests to taste, while millet grains were also placed on display. The United Nations was treated to a sensory blend of seeing, touching, tasting, and learning about millets.

 

The millet exhibition will be on display at the United Nations General Assembly Delegates Entrance Exhibition area from 14-17 February 2023, a media release said. The year 2023 has been designated as the 'International Year of Millets' after a proposal for it was brought forward by India and endorsed by Members of the UN’s Food and Agriculture Organization (FAO) Governing Bodies, as well as by the 75th Session of the UN General Assembly.

 

Millets were among the first crops to be domesticated in India with several evidence of its consumption during the Indus valley civilization. Being grown in more than 130 countries at present, millet is considered traditional food for more than half a billion people across Asia and Africa.

 

In India, millets are primarily a Kharif crop, requiring less water and agricultural inputs than other similar staples. Millets are important by virtue of their mammoth potential to generate livelihoods, increase farmers’ income and ensure food and nutritional security all over the world.

The world’s largest annual global food and beverage sourcing event in the world, Gulfood, will take place from February 20 to 24. It will bring together F&B communities from across the world in Dubai to chart the way forward for this rapidly-evolving sector.

 

According to the Dubai World Trade Centre (DWTC), the 28th edition of the show is set to be 30 per cent larger than the previous years, with 1,500 of the 5,000+ confirmed exhibitors new to the show. Gulfood 2023’s record scale is due in part to the introduction of Gulfood Plus, a new bespoke hall, where first-time exhibitors will showcase product innovations.

 

Leading global brands exhibiting include: Unilever, GMG, Americana, Agthia, Fonterra, McCain, Monin, USAPEEC, Hunter Foods, ASMAK, Minerva Foods, U.S. Dairy Export Council, Frinsa Group, Emirates Snacks Foods and Al Rabie to name a few; as well as newcomers including Brazilian food processing company: BRF Global and Agricultural, and Processed Food Products Export Development Authority (APEDA).

 

Role of industry in curbing inflation

Globally, a series of world events are causing inflation and a rise in the cost of consumer goods, food, utilities, and fuel. The food industry has a huge role to play in helping reverse these trends and moving towards healthier, more resilient food systems.

 

'With the ongoing food crisis, combined with climate shocks, and rising costs of food, 2023 will be an important year for turning the corner and getting back on track while elevating healthy and diversified diets that are sustainable for people and the planet. Gulfood and the UAE will be at the heart of many of these conversations and have a unique vantage point from which to lead the way,' said Trixie LohMirmand, executive vice-president, DWTC.

 

Sustainability

Gulfood Green - a new global sustainability initiative - is expected to ignite and continue conversations within the wider F&B community to create a momentous shift towards more resilient and sustainable food production and consumption. The objective is to raise visibility and influence key strategic food industry champions for sustainable food systems transformation in the lead up to COP28 and set a precedent for the future.

 

The Gulfood Global Forest — an international tree-planting campaign and nature-based solution to the events’ sustainability commitments, to conserve, restore and grow trees across the globe — will help curb climate change. The food industry is known to be a major carbon emitter, and the Gulfood Forest will enable stakeholders of the event from exhibitors and visitors, to speakers, chefs and the wider public to get involved and plant trees to help restore global forests.

 

Gulfood Green has already started planting in four countries: UAE, Uganda, Ecuador and Indonesia, with fruit-bearing trees planted in a number of the locations to enable families and local communities to become self-sufficient.

 

The trees already planted will support 2,000 families and sequester 1 million-kg of CO2 over the trees’ lifetime.

 

Enabling change

The Gulfood Inspire Conference will champion core themes of sustainability, quality and access. Ministers, global F&B value chain leaders, entrepreneurs, civil society and industry experts will lead a series of keynotes, panel discussions and showcases.

 

World cuisine

Gulfood 2023 will launch the ‘Dubai World Cuisine’ Movement, which aims to provide a platform for homegrown chefs to collaboratively shape the cultural identity of Dubai and establish it on the world’s culinary map. For 2023, Singapore has been selected, for the nation’s vibrant and diverse culinary scene from Michelin-starred restaurants to UNESCO-recognised street food.

 

The programme will see six iconic chefs from Singapore hosted in six restaurants in Dubai in February with masterclasses and fringe dinners outside of the event, across the city. Two months later in May, the Dubai chefs will then be hosted in Singapore for six dinners under the umbrella of Dubai World Cuisine by Gulfood.

The G-20 member countries have agreed on a broad four-point agenda as they identified the global challenges in the agriculture sector that need immediate attention. The ongoing discussions are likely to evolve solutions to the four issues of food security and nutrition, climate change’s impact, agri value chain and digital agriculture.

 

Addressing the media on the concluding day of the G20 first Agriculture Deputies’ Meeting of the Agriculture Working Group (AWG) on Wednesday, Union Agriculture Secretary Manoj Ahuja said discussions centred on achieving one of the Sustainable Development Goals (SDG) of zero hunger. 'It has been seen that food insecurity has increased after 2018. This is a cause for concern. We discussed what best we can do to reduce hunger,' he said.

 

Highlighting that climate-smart agriculture was one of the four priority areas discussed at the first Agriculture Deputies Meeting, Ahuja said: 'There was also discussion on the impact of climate change on agriculture and its productivity. We discussed how we can help save agriculture and make it sustainable.'

 

‘Farm to fork’

India also shared the steps taken towards ‘climate-smart agriculture’ like mapping the vulnerable areas and conducting research, he said. Further, Ahuja stressed that there is a need to increase climate finance to help farmers take up adaptation measures in order to mitigate the climate change impact.

 

Some members of G20 felt that there was a need for an environment for increasing climate financing for adaptation measures and suggested that farmers must be incentivised to adopt climate friendly farming or green agriculture like for instance carbon credit.

 

Termed 'Farm to Fork', another area which needs attention is the agriculture value chain as any disruption can have an impact on the small farmers’ income. Ahuja said there was a detailed discussion on improving the 'farm to fork' value chain in agriculture and India told the gathering that it has already shifted its focus from a production-centric approach to a value-chain approach.

 

Agristack project

On digital agriculture, he said India shared its experience on ‘Agristack’ project that is aimed at issuing farm advisories to move farmers towards precision farming.

 

'Further discussions will continue in future meetings on agriculture to be held in Chandigarh, Varanasi and Hyderabad by taking foward the deliberations held in Indore,' Ahuja said.

 

Around 100 delegates, including representatives of international organisations such as FAO, IFAD and IFPRI, attended the event. The secretary said 10 more countries will be invited to future meetings, but he did not disclose their names. He refused to share further details saying it is a global responsibility and it is not fair to reveal details of the on-going discussions.