India is making a  remarkable presence at Gulfood 2024 in Dubai, UAE,  as over 350 Indian companies gathered to showcase their diverse array of products. This unprecedented turnout underscores India's burgeoning role as a global leader in the food supply industry.  For years, India has been a trusted supplier of various food items to the United Arab Emirates, including grains, cereals, pulses, and more. Now, with such a massive presence at Gulfood, India is not just showcasing its culinary prowess but also exploring new avenues for trade in the UAE and beyond.

 

At the heart of India's representation is the Agricultural and Processed Food Products Export Development Authority, whose pavilion boasts over 70 exhibitors, from startups to MSMEs, offering a glimpse into India's diverse culinary landscape. The UAE has become India's third-largest trading partner, thanks to the surge in food exports, fuelled by recent agreements like the Comprehensive Economic Partnership Agreement, which has boosted trade by 16% in just one year.From fragrant spices to wholesome grains, India's offerings cater to a wide range of tastes in the UAE, paving the way for further growth in the domestic food industry, projected to hit $620 billion by 2029.

 

Looking ahead, India's domestic food industry is poised for substantial growth, projected to reach an impressive $620 billion by 2029. The Middle East, with its increasing appetite for Indian flavors, presents a lucrative opportunity for exporters. As the primary food exporter to the Arab League, India is solidifying its position on the global culinary stage. 

 

As Gulfood continues, it serves as a crucial platform for Indian businesses to connect, explore new markets, and forge partnerships. From industry giants to innovative startups, the event promises exciting opportunities in the ever-evolving global food sector.The world’s largest annual gathering for food and beverage sourcing worldwide, Gulfood offers a window into the global food sector’s vast and diverse offerings - from future-shaping F&B innovations to superfoods that are redefining our plates and palates. The fair commenced on February 19th and will conclude on the 23rd.

The FSSAI has decided to allow  manufacturers to use the word 'ORS' as trademark on their products label after the Office of Comptroller General of Patents Designs and Trade Marks has ruled that it was in accordance to the Section 17 of Trademarks Act of 1999.

 

After receiving complaints about many food companies selling products named as ORS, which is also a drug formulation approved by the WHO, the FSSAI had ordered on July 14, 2022, allowing those FBOs having valid trademarks for the product names similar to ORS' to manufacture such products under their respective trademarked names till the decision of the Office of the Comptroller General of Patents Designs and Trade Marks (CGPDTM) was received, which shall be binding and final on all such FBOs.

 

Now after the order by the CGPDTM arrived, the manufacturers are allowed to manufacture such products but with a condition that they have to provide a prominent declaration on front of the pack that this product is not an ORS formula as recommended by the WHO.

 

The font size of the disclaimer should not be less than 1.5mm per 100sqcm, 2mm for 100-200sqcm and 3mm for principal display area above 200sqcm.

 

Also, the FBOs can add info about the product in accordance with the advertising and claims regulations that 'This is only a brand name or trademark, or fancy name and does not represent its true nature; (relevant one may be chosen as applicable)' in specified font size mentioned under the said proviso.

In a significant move aimed at enhancing trade relations with the USA, the Indian government has announced key revisions in import duties. The Finance Ministry has declared a full exemption from customs duty on the import of extra-long staple cotton. Additionally, duties on specific varieties of imported blueberries, cranberries, and frozen turkeys have been reduced.

 

According to a recent notification from the Finance Ministry, the import duty on certain blueberries and cranberries has been reduced from 30% to 10% in some cases and to 5% in others. Similarly, import duties on meat and edible offal of turkeys have been slashed from 30% to 5%, effective immediately.

 

These changes follow a recommendation from the Department of Commerce, stemming from a mutually agreed solution between India and the US. This move is in line with the bilateral agreement reached during the recent G20 Leaders' Summit, intending to address past disputes and foster smoother trade relations.

 

Khushbu Trivedi, Associate Director- Indirect Tax at Nangia Andersen India, highlighted the proactive nature of the government's decision, emphasizing its potential benefits for both nations and other WTO members. Trivedi explained that reducing duties on niche items, scarcely produced in India, would aid the USA in penetrating the Indian market while lowering prices for consumers.

 

In response to concerns raised by the cotton industry, the Ministry has also abolished import duty on specific types of cotton, exceeding a staple length of 32mm. Trivedi lauded this decision as reflective of the government's responsiveness to industry feedback and its commitment to adapting import regulations to benefit stakeholders in the cotton sector.

 

These duty revisions signal a concerted effort by the Indian government to foster mutually beneficial trade relationships, address industry concerns, and promote economic cooperation with global partners.

The government is hopeful that it will be able to supply onion and sugar, imported from India, to the market before the month of Ramadan, said State Minister for Commerce Ahasanul Islam Titu today.

 

'We have already submitted a proposal to import 50,000 metric tonnes of onions and one lakh metric tonnes of sugar from India. They have assured us of providing about 20,000 metric tonnes of onions and 50,000 metric tonnes of sugar. However, we remain hopeful that we will be able to import the products according to our demand,' he said while talking to reporters at the Secretariat.

 

We will get good news over it within Thursday, he added.

 

Besides, the government is trying to import daily essentials from other neighbouring countries, he said.

 

A meeting of the task force committee will be held on Tuesday, said the junior minister, adding that the price of edible oil is expected to be refixed in the meeting.

 

The government will ensure market monitoring at the field level during Ramadan and after fixing the price of edible oil it will take measures so that oil prices remain stable, he added.

Amid the rise in rice prices, the Union government has extended the 20 per cent export duty on parboiled rice indefinitely. It has also decided to allow the zero-duty import regime for yellow peas, subject to the Bill of Lading issued on or before April 30, 2024.

 

The 20 per cent duty on parboiled rice was set to expire on March 31, 2024. The Finance Ministry notified the decision after the Committee of Ministers, headed by Cooperation Minister Amit Shah, approved the proposal, mooted by the Consumer Affairs and Food Ministry, sources said.

 

Official data show that the pan India average retail prices of rice increased to Rs.44.11/kg (0.34 per cent) in a week as of February 20 while its wholesale prices went up to Rs.3,876/quintal (0.07 per cent) . But rice inflation is higher year-on-year – 15 per cent in retail and wholesale as of February 20.

 

Measures to curb inflation

The government has taken several measures, including a weekly auction of rice from Central Pool stocks and retail sales at a subsidised rate of Rs.290/10 kg bag to reduce inflation.

 

The export of parboiled non-Basmati rice was 58 lakh tonnes (lt) between April 2023 and January 24, 2024, as against 62 lt in the year-ago period. India has also exported 21 lt of raw non-Basmati rice under government-to-government request, as against 50 lt in the year-ago period.

 

India began to curb rice exports in September 2022, when it first banned shipments of broken rice and imposed a duty on white rice consignments. In June 2023, it banned exports of white rice and later imposed a 20 per cent duty on parboiled rice.

 

Despite the curbs, India topped rice exports in 2023, with 16.5 million tonnes being shipped out of the country. This included basmati rice, estimated to have made up about 4 million tonnes.

 

According to the Agricultural and Processed Food Products Export Development Authority (APEDA), non-basmati rice exports during April-December 2023 dropped by 28 per cent to 8.34 mt valued at $3.34 billion against 13.18 mt valued at $4.66 billion. Basmati exports during the same period were up 19 per cent at 3.97 mt valued at $3.97 billion against 3.20 mt valued at $3.34 billion.

 

The measures were undertaken in 2022 when paddy-growing areas in the eastern region received deficient rains due to the impact of the southwest monsoon. The shortage was, however, made up in the rabi sowing.

 

In 2023, kharif paddy was affected by a deficient southwest monsoon. This resulted in the Centre banning exports of white rice, imposing an export duty on parboiled rice and fixing $950/tonne as the minimum export price for basmati rice.

 

The Ministry of Agriculture and Farmers Welfare has estimated that 2023 kharif rice production will be 3.8 per cent lower at 106.31 mt against 110.51 mt in 2022. The decision was made to curb rising food prices, too.

The Centre warned the industry that it may impose a price cap on imported tur dal to keep domestic prices in control as it is concerned about monopoly suppliers Myanmar and Mozambique.

 

In a meeting held with the pulses industry and trade representatives on Monday, consumer affairs secretary Rohit Kumar Singh warned the industry of tough action. 'The government is very upset about the strong bullish trend in tur prices. It is also concerned about the bullying by exporting countries like Myanmar and Mozambique,' said an importer from Tamil Nadu, who did not wish to be identified.

 

Wholesale prices of whole unprocessed tur had fallen to Rs.85-90 a kg in December 2023 from last year's high of Rs 120 when the old stock was over and new crop was yet to be harvested. However, they have again increased to Rs.103-105.

 

Industry representatives said challenges in imposing a maximum import price (MIP) include the possibility of a fall in imports. 'Our vessels of tur purchased at $1,000 per tonne from Africa are already on the way to India. If the government keeps the MIP for Africa lower than $1,000 per tonne, then we are bound to incur losses,' a Mumbai-based importer said on condition of anonymity.

 

'However, it has become clear we could import only 13,000 tonnes of tur in January this year, which indicates that Myanmar traders are hoarding the crop,' said the Mumbai-based trader cited earlier.

 

India and the European Union, both have the political will to conclude the Free Trade Agreement (FTA) and while no timeline can be put on the conclusion of the deal negotiations are progressing well, European External Action Service Secretary General Stefano Sannino told ET on Wednesday.

 

'As we speak, the seventh round of negotiations is ongoing in New Delhi. It is an ambitious agreement and there are various elements to the FTA. While no timeline can be put as to when the FTA can be announced, I can say that there is a political will to conclude it,' Sannino said in an exclusive chat on the sidelines of the Raisina Dialogue – India’s premier foreign policy dialogue organised by the MEA and Observer Research Foundation (ORF).

 

Along with FTA talks, India-EU will also discuss an investment protection agreement (IPA) and a pact on geographical indications (GIs).

 

The sixth round of India-EU FTA trade negotiations comprised 71 technical sessions covering 18 of the 23 policy areas and chapters. These talks were held in person and virtually.

 

The proposed trade deal with the EU is one of the most complex FTAs being negotiated by India. While there is interest on both sides to take forward the deal, a breakthrough is unlikely before the general elections in India and European Parliament polls this year.

 

Sannino who is India’s equivalent to the Foreign Secretary also mentioned about a new area of cooperation between EU and India – defence. 'I had a meeting with the Ministry of Defence today (Wednesday) and both sides are discussing ideas to cooperate in the defence sector including cyber security. There are plans to have an Indian Defence Minister in Brussels in future.'

 

The proposed partnership in the defence sector is an extension of India-EU security partnership, Sannino said, adding, India-EU security partnership besides counter-terrorism is focusing on maritime security and Freedom of Navigation.

The proposed India-Oman Free Trade Agreement (FTA), which will boost India’s exports of several items ranging from electronics to textiles and also strengthen its economic and strategic foothold in West Asia, is ready to be signed once the process of legal scrubbing is done, sources have said.

 

'All issues pertaining to the India-Oman FTA have been sorted out and settled and the pact is almost ready to be signed. Only the legal scrubbing of the document remains which is happening right now. Following that, the top leadership will take a call on its announcement, which can also be done through a virtual event if required,' a source tracking the matter told businessline. The attempt is to sign the pact before India’s general elections, expected to be announced soon, the source added.

 

The pact, officially known as the India-Oman Comprehensive Economic Partnership Agreement (CEPA), is important for India. Oman ranks as the third-largest export market within the Gulf Cooperation Council (GCC) nations and bilateral trade has grown fast and steady.

 

India-Oman trade increased to $12.39 billion in 2022-23 from $5.4 billion in 2020-21. India’s exports were at $4.48 billion in 2022-23, while imports were at around$8 billion.

 

There is a huge potential for further growth as over 80 per cent of India’s exports to the country face a duty of 5 per cent, which can be brought down once the CEPA is in place, according to research body GTRI.

 

Export items that could benefit from duty cuts include motor gasoline, iron, steel and products, electronics, machinery, aluminium oxide, textiles and garments, boneless meat, essential oils, ferro silico manganese, and motor cars ($ 28 million), per the report.

 

India’s merchandise imports from Oman, which mostly comprise petroleum products and urea, but also include items like propylene and ethylene polymers, pet coke, gypsum, organic and inorganic chemicals, iron and steel and unwrought aluminium, also stand to benefit.

 

'As both sides are gaining from the FTA, negotiations progressed very fast. The formal talks began in November 2023 and many issues were settled in the first two rounds itself that were held close to each other,' the source said.

 

Oman’s ruler, Sultan Haitam bin Tarik’s state visit in December 2023 further pushed the negotiations. 'The two leaders adopted the `India-Oman Joint Vision: A partnership for future’ which complemented the proposed CEPA,' an industry source pointed out.

 

The Commerce Department then sought further inputs from the industry for the last lap of the negotiations in January 2024, following which the deal was sealed, the source added.

 

Apart from economic benefits, the proposed India-Oman FTA could also result in strategic gains for India as Oman is an important member of the GCC, with which India is yet to sign an FTA, and the pact could help it cement its relationship with the Middle East region.

Commerce and Industry Minister Piyush Goyal on Wednesday said India negotiates trade and investment agreements with fairness and open mind and takes care of the interest of people. He also said countries that are negotiating Free Trade Agreements (FTAs) and investment pacts with India should keep in mind that New Delhi offers a huge market to them in terms of demand and business opportunities.

 

'I can assure you that India negotiates with fairness, with an open mind... India also takes care of its wider and larger interest in the long run,' he said at the CII India-Europe conclave.

 

FTAs or Bilateral Investment Treaties (BITs), or agreements on geographical indications, will have to stand the test of fair, equitable, and balanced agreements as the level of economic developments varies, he said.

'We will have to respect the very different opportunities that are offered by India vis-a-vis the offer on the table from other countries,' he said, adding that India is one of the fastest growing economies of the world.

 

The young population, demand for goods and services, opens up huge opportunities for businesses across the globe, the minister added.

 

The remarks assume significance as India is negotiating such agreements with countries such as the UK, Oman, and the European Union.

 

Speaking at the conclave, the UK's minister Lord Ahmad of Wimbledon said that British businesses are major investors in India and bilateral trade is growing between the two countries.

 

He also said the two nations are working on an ambitious free trade agreement and bilateral investment treaty.

 

'This will boost our trading partnership further... and (would) show the world that India and the UK are serious about trade and very much committed to prosperity at a global level,' Ahmad said adding huge business opportunities are there for Indian firms in the UK.

 

With the negotiations for the proposed India-UK free trade agreement reaching its last leg, a high-level Indian official delegation is in London to iron out the differences on remaining issues.

 

India and the UK launched the talks for a FTA in January 2022. There are 26 chapters in the agreement, which include goods, services, investments and intellectual property rights.

 

The bilateral trade between India and the UK increased to USD 20.36 billion in 2022-23 from USD 17.5 billion in 2021-22.

 

Tobias Lindner, Minister of State at the Federal Foreign Office, Germany, said the India-EU free trade agreement holds immense potential to amplify trade and foster trade-economic integration.

 

He added that the agreement would benefit private sector investments in Indian manufacturing and services sectors and provide access to Indian businesses to the world's largest single market.

 

The seventh round of India-European Union talks is underway here.

 

In June 2022, India and the EU restarted the negotiations for the long-pending trade and investment agreement after a gap of over eight years.

Agricultural and Processed Food Products Export Development Authority (APEDA) has been actively engaged in boosting the export of its Scheduled products to newer destinations, marking a significant step in diversifying India's agricultural export portfolio. With a targeted approach, APEDA is amplifying its efforts towards promoting products under the One District One Product (ODOP) and Geographical Indication (GI) categories while sourcing exports from non-traditional areas/states.

 

Expanding Export Footprint

As of the latest data, APEDA's scheduled products have found their way into markets spanning over 203 countries/territories worldwide, indicating a substantial global presence. APEDA has coordinated more than 27 flag-offs of export shipments in the current fiscal year in an effort to expand its reach even further. This is an example of the organization's proactive strategy to developing trade ties and breaking into new markets.

 

Capacity Building and Market Access

In a concerted effort to empower Farmer Producer Organizations (FPOs), APEDA is actively involved in capacity-building initiatives recognizing them as vital stakeholders in the agricultural supply chain. By providing tailored support and guidance, APEDA has facilitated the transformation of 119 FPOs/FPCs into exporters over five years. This strategic move not only strengthens the position of FPOs in the export landscape but also ensures efficient market access for farmers, thus fostering sustainable agricultural practices.

 

Proactive Export Initiatives

In collaboration with the Central Institute for Subtropical Horticulture (CISH), APEDA has embarked on a proactive initiative to develop sea protocols customized for the export of fresh produce to distant markets. This initiative is set to optimize the export process for promising fresh fruits, aiming to streamline transportation logistics and reduce associated costs.

 

As part of the pilot program, trial shipments of mangoes and pomegranates to the USA and the European Union are underway, showcasing India's commitment to meeting stringent international quality standards. Noteworthy achievements include the successful shipment of bananas to the Netherlands and Russia via sea routes, underscoring the efficacy of the sea protocols in facilitating exports of perishable items.