The Department of Food and Public Distribution (DFPD), Ministry of Consumer Affairs, Food and Public Distribution, Government of India, organised a meeting of State food secretaries on February 28, 2024, at New Delhi to discuss the procurement arrangements for rabi crops in rabi marketing season (RMS) 2024-25 and in kharif marketing season (KMS) 2023-24. The secretary, DFPD, Government of India, chaired the meeting.

 

Various factors impacting procurement such as forecast of weather conditions, production estimates, and readiness of States were reviewed. After deliberations, the estimates for wheat procurement during ensuing RMS 2024-25 were fixed in the range of 300-320 LMT. Similarly, the estimates for paddy procurement in term of rice during KMS 2023-24 rabi crop were fixed in the range of 90 - 100 LMT.

 

A quantity of around 6.00 LMT of coarse grains /millets has also been estimated for procurement by the States during the KMS 2023-24 (Rabi crop). States/UTs were advised to focus on procurement of millets for diversification of crops and enhanced nutrition in dietary patterns.

 

Besides, State Government of Telangana shared the good practices adopted in respect of Supply Chain Optimisation and an indicated a saving of Rs 16 crore annually through this environment friendly initiative by Government of India. Government of Uttar Pradesh shared the successful initiative regarding linking of e-PoS with electronic weighing scale which has effectively ensured supply of foodgrains to the beneficiaries as per their entitled quantity.

 

Ministry of Agriculture & Farmers Welfare presented their evaluation study on Digital Maturity of State MSP procurement applications. State Governments were advised to adopt or improvise their existing applications in line with the standard and core features of AgriStack portal, for bringing about transparency and efficiency in the procurement system, before start of KMS 2024-25.

 

During the meeting, issues relating to Supply Chain Optimisation for transportation of foodgrains from designated depots to Fair Price Shops, improving infrastructure in Procurement Centres, Good Milling Practices and On-boarding Fair Price Shops on Open Network for Digital Commerce (ONDC) were also discussed.

 

Chairman & Managing Director, FCI, Principal Secretary/Secretary (Food) of States, officers from Indian Metrological Department, Department of Agriculture & Farmers Welfare, National Agricultural Cooperative Marketing Federation of India Ltd. and National Cooperative Consumers' Federation of India Ltd. attended the meeting.

Nepal's Ambassador to India, Shankar Sharma on Saturday appreciated the new guidelines of the Reserve Bank of India, which allow multiple financial services between the people of India and Nepal.

 

He said that now Nepal citizens can send Rs 2 lakh per transaction to Nepal and walk-in customers can remit Rs 50,000 per transaction.

 

The Nepal envoy also said that Unified Payment Interface-Nepal Clearing House Ltd, which is to be inaugurated soon, will further eliminate any inconvenience of carrying cash.

 

'RBI's updated regulation allows Nepali account holders to send Rs 2 lakhs per transaction (without any limit) to. Walk-in customers can remit Rs. 50,000 per transaction (12 per yr). The soon-to-be-inaugurated UPI/NCHL mechanism will eliminate inconvenience of carrying cash,' Sharma posted on X on Saturday.

 

RBI's updated regulation allows Nepali account holders to send IRs 2 lakhs per transaction (without any limit) to.

Walk-in customers can remit Rs. 50,000 per transaction (12 per yr).

 

The soon-to-be-inaugurated UPI/NCHL mechanism will eliminate inconvenience of carrying cash. pic.twitter.com/MHnCNWY6Rn

 

- Dr. Shankar P Sharma (@DrShankarSharma) March 2, 2024

 

Last December, Indian Ambassador to Nepal, Naveen Srivastava, announced that the digital payment gateway between India and Nepal is expected to start in the first phase at the end of February 2024.

 

In June 2023, the NPCI International Payments Limited (NIPL) and Nepal Clearing House Limited (NCHL) joined hands to facilitate cross-border digital payments between India and Nepal by integrating the Unified Payments Interface (UPI) of India and the National Payments Interface (NPI) of Nepal.

 

During Nepal PM Pushpa Kamal Dahal's visit to India, an MoU was exchanged between NIPL and NCHL. As per the MoU, both bodies intend to establish cross-border connectivity for financial transactions between the two countries to ease fund transfers and merchant payments by users.

 

The initial engagement was for inward and outward transfers between the banks in India and Nepal, which will be achieved by integration between the UPI of India and the NPI of Nepal to enable existing instruments for cross-border transactions, which will be subsequently extended for other merchant payments.

 

Designated by the Nepal government, the Nepal Clearing House Limited (NCHL) has a 10 per cent investment from Nepal Rastra Bank -- the Central Bank of Nepal and 90 per cent from other different commercial banks.

In the fiscal year 2021-22, India marked a significant achievement in its agricultural exports by shipping 3.9 million tonnes of Basmati rice, valued at $3.54 billion. Over 81% of these exports were directed to major markets including Iran, Saudi Arabia, Iraq, the UAE, the US, Yemen, Kuwait, the UK, Oman, and Qatar. To further boost export opportunities and reduce pesticide reliance, the Indian Agricultural Research Institute (IARI) has launched three innovative basmati rice varieties with inherent disease resistance during this kharif season.

 

Innovative Varieties to Transform Basmati Cultivation

Positioned to revolutionize basmati rice cultivation, the PB1847, PB1885, and PB1886 cultivars distributed by IARI exhibit resistance to bacterial blight and blast diseases. These new varieties are expected to gradually replace the dominant PB1121, PB1509, and PB6 cultivars, which currently account for over 90% of the basmati rice cultivation area. The Director of IARI, AK Singh, highlighted the problem of existing varieties developing resistance to diseases, leading to increased pesticide use and subsequent export rejections due to pesticide residue.

 

Reducing Pesticide Dependency

Field trials have shown promising results for the new basmati varieties, with seeds now being distributed to farmers for further multiplication. This move is especially significant in Punjab, Haryana, and western Uttar Pradesh, pivotal regions in basmati cultivation. By introducing these disease-resistant varieties, India aims to curb the unsustainable practice of relying on antibiotics and fungicides, subsequently reducing instances of export rejections. Former president of the All India Rice Exporters Association, Vijay Setia, expressed optimism about the potential of these new varieties to lessen pesticide use and improve rice quality.

 

Implications for the Future

The introduction of these new basmati rice varieties could herald a new era in Indian agriculture, with significant implications for export earnings, farmer income, and sustainable farming practices. An analysis by IARI between 2010 and 2019 showed that the PB1121 and PB1509 varieties contributed significantly to export earnings and domestic sales, benefiting approximately 1 million farmers. As India continues to dominate the global basmati rice trade, these innovative cultivation practices could further solidify its position while addressing critical environmental and health concerns.

The National Dairy Development Board (NDDB) is working to increase productivity so that India can account for one-third of the global milk production by 2030, its chairman Meenesh Shah said. He said breeding, nutrition and health of animals are the main focus areas for achieving the target.

 

'Currently, India accounts for 24 per cent or one-fourth of total world milk production. This contributes to 4-5 per cent of our GDP. Our plan is to increase the share globally to 30 per cent or one-third of world milk production by 2030,' he said.

 

Increasing the productivity of animals is crucial to achieving it, Shah said, pointing out that though India is the largest producer of milk, animal productivity is less than in developed countries.

 

'The Government of India and NDDB are working together on its mission to increase productivity. Breeding, nutrition and health of animals are the crucial areas in this regard,' he added.

 

'Our milk production has been growing at 6 per cent per annum for the last five-six years, while the global growth rate is 2 per cent. We have to maintain it,' Shah said.

 

In Assam, the NDDB has formed a joint venture company with the state government to work for holistic development of the dairy sector, he said.

 

'In the next seven years, the plan is to increase procurement of milk and bring more farmers under the cooperative movement,' he said.

 

The installed capacity of West Assam Milk Producers Cooperative Society (WAMUL), which operates the popular brand Purabi, is being also increased with the opening of a new plant, Shah, who is also the chairman of WAMUL, said.

 

The NDDB is also working on using more solar and renewable energy sources, he said.

The government on Friday said almost 5,000 out of 8,000 registered Farmer Producer Organizations (FPOs) have been onboarded on the Open Network for Digital Commerce (ONDC) portal for selling the produce online to consumers across the country. Around 8,000 FPOs have been registered against the government's target of 10,000 under a central scheme launched in 2020 with a budgetary provision of Rs 6,865 crore. FPOs facilitate farmers with access to improved technology, credit, better input and more markets to incentivise them to produce better quality commodities.

 

'Almost 5,000 out of 8,000 registered FPOs have been registered on the ONDC portal...,' the agriculture ministry said in a statement.

 

The onboarding of FPOs on ONDC to reach out to their buyers in any part of the country is in line with the Central government's objective of providing growers with better market access, it said.

 

The move aims to empower FPOs with direct access to digital marketing, online payment, business-to-business and business-to-consumer transactions.

 

The ministry said the formation and promotion of FPOs is the first step for converting 'Krishi into Atmanirbhar (self-reliant) Krishi.' The initiative enhances cost-effective production and productivity and higher net incomes for the members of the FPO.

 

It also improves the rural economy and creates job opportunities for rural youths in villages itself. This was the major step towards improving farmers' income substantially, it added.

 

Under the central scheme, FPOs are provided with financial assistance of up to Rs 18 lakh per FPO for a period of three years. In addition, a provision has been made for matching equity grants of up to Rs 2,000 per farmer member of FPO with a limit of Rs 15 lakh per FPO and a credit guarantee facility of up to Rs 2 crore of project loan per FPO from the eligible lending institution to ensure institutional credit accessibility to FPOs.

 

So far, the credit guarantee has been issued to 1,101 FPOs worth guaranteed coverage of Rs 246 crore covering more than 10.2 lakh farmers. Matching equity grant amounting to Rs 145.1 crore has been transferred directly to the bank account of the eligible 3,187 FPOs, the ministry added.

India’s fresh grape exports are seen rising by over a tenth in the 2023-24 season on strong demand from Europe, its main market. The increase in shipments is notwithstanding the higher freight costs, which have more than doubled to the region on account of disruptions in the Red Sea region. Supply issues from South Africa have helped push up demand for Indian grapes in Europe, exporters said.

 

Vilas Shinde, Chairman and Managing Director, Sahayadri Farms, the country’s largest grape exporter, said shipments in volume terms have been up around 20 per cent till now when compared to the same period last year. The export season started early, by about three weeks this year, as we had an early harvest. 'Despite higher freight rates, the market in Europe, our major major destination has been good and the prices are also good,' Shinde said

 

India exports grapes mainly during January-March. 'Grapes production has been good this season, so far. There were some rains during November-end and early December, which might have some impact on quality in March. The shipment volumes have been good. Volumes are up by about a tenth over the same period last year. The demand for Indian grapes has been strong in Europe. This is mainly on account of some issues in the South African production,' said Pankaj Khandelwal, Co-CEO, INI Farms, part of the AgroStar Group.

 

Large markets for India

Khandelwal said the market in Europe was able to absorb the higher cost as the demand was good. Freight costs have more than doubled to Europe due to disruptions in the Red Sea region. Also, air freight rates have gone up, he said.

 

'Grapes shipments have held up despite higher costs and freight. The cost is high, freight is high, and thankfully, demand is also high this year,' Khandelwal added. 'So far, the shipments have been good during January–February, as the volumes have been strong. Our shipments peak in March. We will have to see how the season eventually pans out,' he said.

 

India exported 2.67 lakh tonnes of grapes valued at $313.69 million during 2022-23. The Netherlands is the biggest buyer of Indian grapes, accounting for close to 40 per cent of the overall shipments. Other large markets for Indian grapes are Bangladesh, the United Arab Emirates, the United Kingdom, and Russia, among others.

 

USDA forecast

The USDA in a recent report said world table grapes production for 2023-24 is forecast up 490,000 tonnes to 28.4 million on improved China supplies. India’s production is anticipated to improve slightly, up 100,000 tonnes to 3.0 million tonnes, as good rainfall and favorable growing conditions boost yield and improve fruit quality. The supply gains are expected to boost exports by 13,000 tonnes to 295,000 tonnes, especially to the top-market European Union, the USDA said.

Commerce and industry minister Piyush Goyal has termed as 'good' the outcome of the WTO’s 13th ministerial conference even though it ended without a decision on India’s key interests of agriculture and fisheries. Goyal said he was going back 'fully satisfied' as the objectives with which he came to Abu Dhabi were largely met. Edited excerpts of an interview with ET:

 

Are you satisfied with the outcome?

It is a good outcome and we are completely satisfied. Progress was made on several contentious issues and India continues to retain full policy space for the benefit of our farmers and fishermen. We have been able to protect India’s interests.

 

What were the problematic issues in agriculture and fisheries?

There were no problematic issues in agriculture as we have a peace clause on public stockholding and our procurement of grains for distribution to the poor continues uninterrupted and without hindrance.

 

On fisheries, we found several ambiguities on the proposals that were on the table, more particularly some of the subsidies that certain countries give were sought to be excluded, definitions were not satisfactory and several areas where deeper consultations and greater degree of flexibility is required to ensure a fair and balanced agreement were not possible in such a short period of time. By and large the objectives with which we had come to Abu Dhabi are largely met and we go back fully satisfied.

 

Are there any concerns on the ecommerce moratorium getting extended?

We are not necessarily opposed to it fully. We were seeking that they should have discussed in the intervening period between MC12 and MC13 the scope of ecommerce moratorium, areas to be covered and excluded, and study its impact on different economies.

 

Since the process has not yet been completed, we believe that it is in the best interest that we continue this ecommerce moratorium and ensure that if at all it is found to be necessary, there will be discussions at Geneva to see if there are any areas particularly which need to be covered under the moratorium, otherwise as the decision stands, it will expire at the end of two years or the next ministerial, whichever is earlier.

 

With the world getting fragmented, is the WTO relevant?

I think it is. The WTO is an important organisation. It does carry the weight of 166 countries and creates equitable rules of trade and gives an opportunity to every country to raise areas of their interests or concerns. Of course, it can work much better and deliver much more.

 

Is it time for India to have more offensive interests?

As of now, we do not have any offensive interest per se. Our largest interest was to protect our farmers and our fishermen, both of which we are strongly doing, and that is our offensive interest, which we are actively pursuing. We have always stood for least developed countries and developing countries.

 

Some people have lost interest in the WTO because of the non-functional dispute settlement body…

It is important to get the appellate body back so that the disputes can be escalated to the WTO for resolution. Sadly, without an appellate body, no dispute can be taken to its completion and to that extent people do feel now it is not worth the while to have. The progress has been relatively slow and certain countries are not yet ready to accept the two-tier dispute settlement mechanism that is the hallmark of the WTO.

 

With India supporting a joint statement initiative on domestic services, does it mean we are gradually shifting our stance on JSIs?

We continue to believe that JSIs are not part of the WTO process and we do not recognise them. This hasn’t come in through the JSI process. It has come in through countries voluntarily deciding whether to join or not, and that’s part of the process approved in WTO.

 

Non-trade issues have been making their way into the WTO and it doesn’t seem to stop…

We have been successful in making sure that non-trade issues aren't brought into the WTO. For example, an effort was made to begin investment facilitation. Since investment is not part of the WTO, we did not allow it to come in. Similarly, an effort was made to bring industrial policy discussions, again an area that India believes is not a part of the original Marrakesh framework. India has successfully made sure that no non-trade issue is brought before the WTO.

 

India also tried to reduce the cost of cross-border remittances in MC13. How will we take it forward?

That was India's offer to the world. A large number of countries, particularly less developed and developing countries, are required to use channels for remittances, which makes it extremely expensive. I am given to understand that remittances on an average can cost 4-9% of the transaction value, and India has developed the UPI and a very robust fintech system, which can help bring this down to less than one-eighth or one-fifth of the current amount.

 

Finance Minister Nirmala Sitharaman on Friday said many countries are negotiating to start trade in rupee as the country's fundamentals are strong and the Indian unit has been 'mostly stable' against most of the international currencies. Addressing the Pandit Hriday Nath Kunzru Memorial Lectures 2024 at JNU, Sitharaman also said India has opened up every sector for private investments and will extend fiscal and policy support to sunrise sectors like artificial intelligence, semiconductors and manufacturing using innovative tools.

 

'Indian Rupee being mostly stable against most of the international currencies except for the US dollar, where it had volatility. But even in that case, compared to many other currencies, the Indian rupee has been far more stable even against the US dollar.

 

'And therefore, you find countries today wanting to have trade relations built on rupee trade,' said Sitharaman while addressing students and professors at her alma mater.

 

'As a central university, JNU provided me with all India exposure that has helped me grow as a student. A nostalgic visit,' Sitharaman said in a post on X.

 

She had completed her MA and M Phil from the School of Social Sciences and School of International Studies at JNU, respectively.

 

Observing that rupee trade could have 'teething problems', Sitharaman said it is, however, helping many of the countries, which has dollar shortages.

 

'We have evolved to a stage where we recognise that the Indian rupee, in some regions at least, is used as an instrument of trading currencies. Your macroeconomic stability tells you that,' Sitharaman said.

 

India has started trade in the rupee with neighbouring countries, including Nepal and Bhutan. The rupee trade mechanism has been initiated to facilitate trade in national currency with Russia, while Sri Lanka has included the rupee in its list of designated foreign currencies.

 

India has a huge market size and has a population of middle class with purchasing power for whom they can produce. And that number of middle class by 2047 could be anywhere between 102 crore, Sitharaman added.

 

'India is being taken seriously only because the economy is a lot more stable now. Taxation policies are a lot more predictable, and systems are a lot more transparent... We have received the highest FDI beyond USD 600 billion and our reserves are also matching... Economic fundamentals being absolutely stable and strong, which gives us the position that people take us seriously, want to engage with us and we are willing to listen to the suggestions given by India,' she noted.

 

The minister said that the global fora, be it the G20 or the UN, are all now focusing on India's solutions in reforming institutions, which will help in building a better 21st Century for all. It reflects on India's important role in the evolving global landscape.

 

Sitharaman said India was able to meet the challenges of COVID-19 and other economic issues because of the 'responsive government'.

 

'A government, which was ready to listen to the people, to those affected, to observers, to experts and sieve through all the suggestions to come up with solutions and relief measures,' she said.

 

She said India has opened up every sector for investments and space, deep sea, rare earths, and sunrise sectors -- are all going to be the priority areas.

 

'Artificial intelligence, semiconductors, manufacturing in India with innovative and newer tools are all going to be priority areas where policy and fiscal supports will be extended,' she said.

 

Referring to the management term 'VUCA' principle, which speaks about the volatility, uncertainties and complexities, Sitharaman said VUCA has become a default setup in contemporary times.

 

'With all these uncertainties, it is the instrument of adaptability that is being infused into the system to prepare us for any eventuality,' she said.

The government is set to launch a portal for masur dal (lentil) where farmers who register will be guaranteed the minimum support price (MSP) for their produce.

 

The initiative, first started for tur dal, is being expanded to cover masur and other pulses in a bid to make their cultivation lucrative for farmers, a senior official said, requesting not to be named.

 

'We are about to start registration of masur farmers ahead of the harvesting season so that the procurement process is smooth,' the official said, adding that these farmers will get paid by direct benefit transfer.

 

Although India is the largest consumer of pulses, it is dependent on imports for domestic consumption. For masur, it depends on imports from Canada and Australia. Higher domestic production of pulses will help the country reduce their import.

 

While food inflation eased to 8.3% in January from 9.53% in December, it remained elevated compared with the year-ago period, when it was at 6%. The inflation rate at 19.54% in pulses remained a major factor.

 

As the government prepares to face voters in the general election, it has started selling chana dal in the retail market under the 'Bharat' brand at a subsidised rate.

 

The government expects India to become the world's largest producer of masur in 2023-24 crop year with production estimated at an all-time high of 1.6 million tonnes during this rabi season on account of higher acreage.