The European Commission has changed the level of inspections on various imported products, including decreases related to ethylene oxide and increases in pesticide residues.

 

The revised legislation sets the rate of official controls and special conditions for food and feed of non-animal origin imported into Europe. Rules are modified every six months.

 

Decisions are based on reports in the Rapid Alert System for Food and Feed (RASFF) and information from documents, identity, and physical inspections by EU countries in early 2023.

 

Checks on sesame seeds for Salmonella from India have been tightened to 30 percent of consignments. However, controls for ethylene oxide will be relaxed from 50 percent to 30 percent of shipments.

 

Ethylene oxide amendments

Instant noodles containing spices and seasonings or sauces from South Korea have had a higher rate of official controls because of the risk of contamination by ethylene oxide since December 2021. Findings by member states show better compliance, so the control level of 20 percent of consignments entering the EU has been reduced to 10 percent.

 

Stricter checks on food supplements containing botanicals from South Korea and peppers (other than sweet) from Uganda due to ethylene oxide have been removed.

 

The frequency of identity and physical checks on cumin seeds from Turkey for pyrrolizidine alkaloids has been increased to 30 percent.

 

Guar gum from India has been subjected to increased official controls because of the risk of contamination by pentachlorophenol and dioxins since February 2015. National inspections show improvement in compliance, so the level of controls has been reduced from 50 percent of consignments entering the EU to 30 percent.

 

Peanuts, also known as groundnuts, from the U.S., will still be checked at a frequency of 20 percent for aflatoxins. Vanilla extract controls for pesticide residues also remain unchanged at 20 percent.

 

The majority of updates feature pesticide residues. Increased oversight has been put on seem and helmet beans from Bangladesh, yard-long beans from India and Sri Lanka, granadilla and passion fruit from Thailand, durian from Vietnam, vine leaves from Egypt, and rice from Pakistan. However, controls have been relaxed for mint from Israel.

 

Oversight related to Chernobyl

 

The EU Commission has also updated rules covering import conditions of food and feed from other countries following the accident at the Chornobyl nuclear power station in 1986.

 

Conditions apply to products containing or derived from wild mushrooms and wild fruits of the genus Vaccinium, such as cranberries and blueberries, several other mushroom types, and some juices and waters.

 

Mixtures of nuts and dried fruits, jams, fruit jellies, marmalades, fruit or nut purée and fruit or nut pastes, mixtures of juices, flavored waters, and certain foods with several ingredients containing the affected mushrooms and fruits are also covered by the rules.

 

Certain foods with wild mushrooms or wild berries might also contain ingredients of animal origin, so physical controls should only be performed at the border control post, said the EU Commission.

 

The maximum permitted levels of radioactive contamination in terms of cesium-137 is 370 Bq/kg for milk and milk products and food for infants and young children. It is 600 Bq/kg for all other covered products.

India has exported Rs 5525.18 crore worth of organic products during the financial year 2022-23 which was Rs 275 crore more than the previous year's export of around Rs 5249.32 crore.

 

Although in last five years it was only in 2020-21 when the export of organic products was highest at Rs 7078.50 crore.

 

And the export is yet to reach the levels of 2020-21.

 

According to the Ministry of Commerce and Industries, India's export of organic products are governed under the National Programme for Organic Production (NPOP), notified in 2001 under the Foreign Trade (Development & Regulation) Act, 1992.

 

And a product is allowed to be exported as 'Organic Product' only when accompanied by a Transaction Certificate issued by a Certification Body accredited by National Accreditation Body

(NAB) for Organic Products under the NPOP.

 

'For expansion of organic export to new markets, India is engaged in Mutual Recognition Agreement negotiation with potential importing countries', reads a statement issued by the Ministry.

Rates of parboiled rice exported from top hub India advanced to record highs this week on limited supplies and steady demand from Asian and African buyers, while prices eased in Vietnam and Thailand.

 

India's 5% broken parboiled variety was quoted at record $533-$542 per ton this week, up from last week's $525-$535.

 

'Supplies in the market are limited since the government's paddy buying is leaving little for private players. Additionally, rice milling of the new season crop is currently underway, further reducing the availability of milled rice,' said Nitin Gupta, senior vice president of Olam Agri India.

 

India's rice output is expected to drop this fiscal year for the first time in eight years, raising the prospect of New Delhi extending curbs on exports of the grain to control food prices in the lead-up to elections.

 

Vietnam's 5% broken rice was offered at $630 per metric ton, down from $653 per ton a week ago.

 

Traders noted that domestic supplies are accumulating, and that harvest has begun partially in the Mekong Delta, which is expected to peak in March.

 

'Trading activity is slow as buyers are waiting for prices to fall further in anticipation of stronger supplies from the upcoming winter-spring harvest,' a trader based in Ho Chi Minh City said.

 

Thailand's 5% broken rice prices was quoted at $663-$665 per ton, down slightly from $665 last week.

 

Prices softened due a weakening baht, said a Bangkok-based trader.

 

However, there was domestic activity and a fresh order for 0.5 million tonnes from Indonesia, which helped buoy prices, he added.

 

Rice prices in Bangladesh stayed elevated after a sharp rise last week despite good yields and record reserves, prompting Prime Minister Sheikh Hasina to issue orders for immediate action against rice hoarders.

Australia is keen to get easier access to India’s agriculture market under the proposed Comprehensive Economic Cooperation Agreement (CECA) that is being negotiated between Canberra and New Delhi even as first phase of the trade pact, officially known as the Economic Cooperation and Trade Agreement (ECTA), has resulted in Indian goods to be available at much lower cost in that country, according to Philip Green, High Commissioner of Australia to India.

 

Speaking exclusively to ABP LIVE, Green said the ECTA has since coming into force already achieved a 77 percent utilisation rate of free trade access by exporters on both sides. However, he added, it is crucial for Australia to get more market access in India for agricultural goods, including agriculture technology.

 

'The first phase – ECTA – is going very well. The utilisation rate of the free trade access is now at 77 percent. That’s an extremely high level for free trade agreements. Indian products are able to enter Australia more cheaply and therefore more are flowing,' the Australian envoy told ABP LIVE during an interview.

 

According to Green, export of apparel and clothing from India has seen a 10 percent increase since the ECTA came into force in December 2022. He also highlighted that exports of Indian agricultural goods witnessed a 16 percent rise due to the trade deal.

 

'We are very keen to conclude the second phase, which is called CECA… (In CECA) Agricultural access is important to us. We are a big agricultural exporting country and we think that Indian consumers can benefit from more Australian agricultural goods at lower costs,' he said.

 

India and Australia have been negotiating the CECA since May 2011. However, after several rounds of negotiations, talks were suspended in 2016. It was thereafter revised in September 2021, and eventually the ECTA was signed.

 

One of the main reasons why concluding the CECA has missed many deadlines is due to Australia’s insistence on having reduced or tariff-free access to India’s agriculture market. The CECA is currently under negotiations and may not be concluded before the later part of this year until a new government comes to power in India after the parliamentary elections that are expected to be held in April-May 2024.  

 

Last December, an Australian parliamentary delegation visited India to discuss Australia’s entry into the Indian farming segment, which remains a contentious topic between both sides.

 

'We understand that this (agriculture) is sensitive for India. We have no desire to upset the lifestyles of important numbers of Indian people. To the contrary, we actually think that this deal (CECA) can be built in such a way that it supports the agricultural sector in India. We have a lot of agri-tech and we are prepared to share that. We would like to find ways of making sure that this is a win-win for Australia and India in agriculture,' said Green.

 

India Needs To Be ‘Quick & Assertive’ In Importing Critical Mineral, Rare Earth  

In October 2023, the Anthony Albanese government unveiled a plan to make it easy for countries to invest in mining and processing critical minerals and rare earth by announcing a $1.25 billion fund. With China dominating the market and the demand for critical minerals like lithium and cobalt increasing, Australia has said it wants India to be a steady player in that supply chain.

 

'Concluding the CECA would mean better utilisation of Australian critical minerals in India’s renewable energy trade especially in electric vehicles and batteries … India wants to do more in the renewable sector and we want India to be successful in that and we have a lot of the resources that are required for that. We want to make sure that Indian firms and governments are part of that supply chain,' said Green.

 

Australia is the largest exporter of lithium and second-largest producer of cobalt in the world. 

 

'We are going to be real about this. The demand for our critical minerals is high. Purchases in North America, purchases in North Asia, purchases in Europe, they are on the ground, as are some Indians. So my message to the Indian industry is that we are here to help, we want you to succeed, but you got to be quick and you are going to be assertive in a way you are going to go about it,' he stressed.

 

Green, who assumed charge as Australia’s envoy for India in August, also said: 'I do not think India is lagging behind. This phase is natural. We know about the mining game, it won’t be quick, developing mines takes time, takes high level of trust and of course, takes resources. I am confident that we will get there but my message is we all have to work harder and faster at this moment so when we come to the end of the next term of an Indian government we can say yes we got that done.'

 

India ‘An indispensable Partner’ In Indo-Pacific

With tensions now rising in the Red Sea region due to relentless attacks by Houthis on merchant vessels that have invited military operations in Yemen by the US and the UK, Australia said its ties with India are now more critical than ever under the Indo-Pacific strategic framework.

 

'We (Australia and India) live in a more complex, contested and dangerous world and we both need greater partnerships and deeper friendships with those whom we trust and with those with whom we have similar outlooks. For Australia, India is on a very short list of those countries that we want to deepen and we feel it’s important as we face more tension in our region,' said Green.

 

He added that 'both our governments are making very powerful efforts to manage those tensions', and aiming to see that the conflict in the Red Sea region 'do not widen in a way that it becomes dangerous for all of us'.

 

Earlier this month, External Affairs Minister S Jaishankar visited Iran where he raised the issue of 'threats of maritime shipping' with Tehran. Meanwhile, Australian Foreign Minister Penny Wong visited Jordan, Israel, the Occupied Palestinian Territories, and the United Arab Emirates, to mitigate the growing tensions arising in the Middle East that is threatening growth in global commerce.

 

Since December, Houthi rebels have been attacking merchant ships passing through the Red Sea in retaliation to Israel’s deadly airstrikes on Gaza that has given rise to a humongous humanitarian crisis.

 

'The situation in Gaza is dire. Although Hamas attacks are to be completely decried, the ending of Hamas must be sought and we support Israel in that, the humanitarian interest of the people of Gaza must be held in that balance, that’s terrifically important… We are also focussed on the original cause of this, which we would like to bring to a sustainable ceasefire … And a ceasefire that is not unilateral,' said Green.

 

Australia is also part of the Quad, which includes India, Japan, and the US. According to the envoy, the Quad will remain focussed on the Indo-Pacific while he ruled out any expansion plans of the grouping.

 

'We are dealing with a world with global challenges in multiple locations. For our country, still, the top priority is the stability and peace in the Indo-Pacific and against that ambition India is an indispensable partner,' said the Australian envoy.

The complex language used in the notifications of the CBIC regarding customs duties needs simplification to help industry in understanding those orders as they carry crucial details, economic think tank GTRI said on Thursday. The Global Trade Research Initiative (GTRI) said for this the CBIC (Central Board of Indirect Taxes and Customs) must use services of communication experts for help in drafting easy to understand notifications containing necessary details.

 

This will help over a lakh firms importing merchandise exceeding USD 660 billion in 2023 and it will also add to the ease of doing business with zero cost to the government and immense benefit of clarity to the Indian industry, it said.

 

'Notifying import duties is a critical mandate of CBIC. Firms pay import duties as notified by CBIC, but firms cannot do it on their own as the CBIC notifications use complex language and mostly refer to back notifications unintentionally hiding complete details needed to know the duty or import conditions on a product,' GTRI Co-Founder Ajay Srivastava said.

 

Using simple language would also enhance transparency in its tariff and other notifications, he added.

 

Import duties in India vary significantly, ranging from 0-150 per cent.

 

These duties include components like basic customs duty, social welfare cess, Agriculture Infrastructure Development Cess (AIDC), and IGST (Integrated Goods and Services Tax).

 

Citing an example, the GTRI said a company importing tennis shoes would pay 35 per cent basic customs duty, 3.5 per cent social welfare cess, nil AIDC, and 18 per cent IGST.

 

However, the total duty is not a simple sum of these percentages but is calculated using a specific formula, resulting in a total duty of 63.43 per cent.

 

'It is impossible for a layman to find out individual duty components for a product and calculate the total duty payable,' Srivastava said.

 

This complexity poses a challenge, especially for small firms, in determining the correct customs duty for their products, the GTRI said, adding that they have to seek expert help to understand and comply with the various duties, as the information is spread across numerous notifications each year.

 

Talking about a recent notification regarding some gold items, it said a person needed to look at, at least 11 notifications that amended the oldest notification.

 

'This roundabout reference makes understanding the update challenging. The notification could have simply stated that the government has imposed an AIDC of 5 per cent on gold or silver findings, avoiding the need for cross-referencing multiple documents,' it added.

 

It suggested the CBIC to use straightforward, non-technical language to make notifications easily understandable and standalone, eliminating the need for cross-referencing.

 

Further, they should clearly state relevant products and corresponding duties in each notification to avoid confusion; and compile all duty-related information under various conditions into a single notification; and adopt a comprehensive approach like the Directorate General of Foreign Trade (DGFT) to ensure each notification is complete in itself.

 

'Implementing these suggestions would significantly elevate the effectiveness of CBIC notifications. Clear, direct, and comprehensive communication is key to ensuring compliance and ease of interpretation,' it said.

India has begun commercial export of pomegranates to the USA after it lifted the export ban in 2022. The government expects this move to open a big market for the Indian pomegranates, a fruit which is being increasing preferred by consumers across the world for its health benefits.

 

A consignment of 1344 kilograms of pomegranates of Kay Bee Export treated in the presence of an inspector from the USA was shipped by air on January 24. 'The pomegranates were first processed at the pack house of Kay Bee Exports and then irradiated at the Irradiation Facility Centre (IFC) of Maharashtra State Agricultural Marketing Board (MSAMB) at Vashi in the presence of the US inspector to Florida in USA,' said MSAMB in a release.

 

It added, 'In 2017-2018, the United States had banned the import of pomegranates from India due to fruit fly infestation in pomegranate.'

 

Th Agricultural and Processed Foods Export Development Authority (APEDA) and the National Plant Protection Organisation (NPPO) had jointly started discussions with the United States Department of Agriculture to lift the export ban. However, the USA has put a few conditions and prescribed some processes like mite wash, sodium hypochlorite treatment, washing, drying etc before the pomegranates are packed in boxes followed by irradiation, said Maharashtra state government officials.

 

India expects to tap a big market for pomegranates in the USA. 'The USA has included pomegranate in the dietary guidelines for skin disorder which has created a huge demand for pomegranate in USA. The Indian pomegranate variety has more demand than the California pomegranate variety. As this year’s pomegranates season in California has ended, there is scope for Indian pomegranates to capture the US market,' said MSAMB.

 

Like in case of mangoes, for which the USA sends an official as inspector to supervise the processing of mangoes for exports, it has sent an inspector for the pomegranate processing.

 

Maharashtra is the top producer and exporter of pomegranates in the country.

 

'We has done a trial shipment of pomegranates with the INI Farms about two months ago. We are currently using the air route as the freight time and costs are high by the sea. The ongoing Israel and Palestine war has made it tough to use the shorter Red Sea route. We expect the exports to increase after use of the sea routes becomes a feasible option,' said an official of the MSAMB, who requested not to be quoted.

Arunachal Pradesh Chief Minister Pema Khandu has said that the government will establish a mini food park in the West Siang district with food processing units for all produce of the entire Siang belt. Khandu declared that the Arunachal Pineapple Festival, held at Bagra for the first time as a community initiative in collaboration with Arunachal Pradesh Marketing Board, will be an annual event to be organized by the state department of Horticulture.

 

Speaking at the closing ceremony of the three-day event, Khandu appreciated the local residents under the banner of All Bagra Welfare Society for conceptualizing the festival in collaboration with the state marketing board to highlight and revive pineapple cultivation in the area.

 

'I must congratulate the All Bagra Welfare Society for organizing this unique and novel event without relying on government funding,' he said.

 

Underscoring West Siang’s potential in horticulture, Khandu assured to establish a mini food park in the district with food processing units for all produces of the entire Siang belt.

 

It may be noted that Bagra village in particular and Pushi Bango in general cultivated pineapple in large scale since 1950 under the patronage of the first pineapple grower of the area late Tojo Bagra.

 

A pineapple grower association was formed in 1980 to explore better marketing avenues, regulate price and push for establishment of a large scale processing unit. Eventually a canning factory was established but couldn’t sustain.

 

The Pineapple Festival aims to push for at least 2000 to 5000 hectors of pineapple, orange, lemon, banana, etc cultivation in the area.

Industry leaders, top government officials and international experts will on January 30 discuss India’s export control systems for sensitive goods and technologies, the government said Sunday.

 

The commerce and industry ministry along with external affairs ministry and other government agencies is organising the National Conference on Strategic Trade Controls (NCSTC), focusing on India’s trade control for certain dual-use goods-which have both industrial and military uses- software and technologies, called Special Chemicals, Organisms, Materials, Equipment and Technologies (SCOMET).

 

As part of India’s Strategic Trade Control system and in consonance with the relevant control lists, guidelines and provisions of the international conventions, mechanisms and regimes, the country regulates the exports of dual use items, nuclear related items, and military items, including software and technology under the SCOMET list, which is notified by the Directorate General of Foreign Trade under the Foreign Trade Policy.

 

“The conference mainly focuses on outreach to the industry especially for those dealing in sectors regulated under India’s SCOMET list including special materials and high tech equipment, chemicals, biotechnology, defence, aerospace (comprising Drones/UAVs), electronics and semiconductors, telecommunications, information security, and related software and technology,” the commerce and industry ministry said in a statement.

 

Key International speakers including the Chair of 1540 Committee of United Nations Security Council and the Chair of Missile Technology Control Regime, senior government officials including Commerce Secretary, Member (Customs) of CBIC, Director General of DGFT, etc. would be participating in the Conference and addressing the industry and other stakeholders. More than 500 industry representatives are expected to attend the conference, according to the ministry.

India’s resilient agriculture sector has been a major shield against geopolitical upheavals such as the Red Sea disruptions, which prompted many countries to have a'long-term understanding' with India for food exports, Union finance minister Nirmala Sitharaman said on Thursday adding that the government continues to boost the sector with enhanced focus on R&D aiming to bolster exports of value-added products.

 

Replying to a specific question on the features and future of Indian agriculture, she said:'We should be extremely glad for one thing. There are countries, including some very big countries, who are not self-sufficient in food grains, who are not self-sufficient in horticulture, who are not self-sufficient in milk. Who [are] certainly not self-sufficient in fish and poultry… And India Is self-sufficient… in all these.'

 

In some of them India is the world’s number one or number two producer in terms of the quantity and is also in a position to export.'Whether your milk and milk products. Whether it is your horticulture, your fruits. India is one of the top exporters,' she said. The finance minister was addressing students of Hindu College in the Capital on the occasion of its 125th anniversary.

 

India’s exports of foodgrains registered a steady growth in the last few years as the country’s share in world foodgrain exports rose from 3.38% in 2010 to 7.79% in 2022, according to the United Nations Commodity Trade Statistics Database (UN Comtrade) data. Top agricultural items exported from India included marine products, rice, sugar, spices, buffalo meat, wheat, castor oil and processed food items. Key export destinations for Indian products are the US, China, Bangladesh, the United Arab Emirates (UAE), Vietnam and Saudi Arabia.

 

Sitharaman said India may not be self-sufficient in pulses and oil seeds, but it is a leading producer of some commercial crops such as cotton, coffee, tea and rubber.'India is one of the top countries which produces high quality rubber, natural rubber… [which] is grown in Kerala and… the northeast.'

 

'So, we are one of those very fortunate countries in the world -- which is affected by war [Russia-Ukraine war and Israel-Hamas war], your Red Sea conflict – [making] movement of food grains becoming very, very logistically challenging and costly,' she said.

 

FM asked students not to waste food.'I, therefore, appeal to you, please don’t waste food. We may be self-sufficient, but there are a lot of people even today, who find it difficult to buy all that they want to buy. So be caring. Take as much as you want... Don’t fill your plate up and waste it. This is a wonderful country which can feed every one of us. But, we should not be greedy.'

 

'So, that’s the feature. But what’s the future?,' the FM said while elaborating the second part of her reply.'The future is – there are a lot of countries which want to have a long term understanding with India for food exports. Processing of food. Export of processed food. Export of value-added food. Immense possibility exists in agriculture,' she added.

 

Addressing the youth of the country, Sitharaman asked them to actively participate in farming.'We are investing in R&D in agriculture, and I’m sure many of you who have interest in that area should go back to your respective villages. Even if there is a small holding, at least as a matter of hobby like pursuit. Start attempting to do something in agriculture. It’s so rewarding, not just financially, even otherwise,' she said.

 

Answering another question on direct benefit transfer (DBT), the Aadhaar-enabled digital mechanism to transfer money directly in the bank accounts of the poor, she said DBT brought transparency and efficiency besides stopping pilferage of subsidies for the vulnerable. It resulted in huge savings, she said as about 44 schemes under the DBT mode since 2020 saved syphoning of about Rs.2.5 lakh crore by unscrupulous elements by eliminating unintended beneficiaries.

 

Sitharaman said the government is committed to provide benefits of welfare schemes to all eligible citizens and it is close to reaching the saturation level in several key schemes. The Modi government has laid'the material foundation' for a ‘Viksit Bharat’ by empowering people by meeting their basic necessities.

 

She said the Modi government doesn’t differentiate between people. The government has categorized India into four groups--Youth, Women, Farmers and Poor-- and efforts are made for betterment of these groups irrespective of caste, creed and religion, she added.

Strong domestic demand is tightening India's corn supplies, with the country's consumption of the animal feed ingredient seen growing by up to 2 million metric tons a year, a senior executive of global trading firm Louis Dreyfus said.

 

India has been a key corn exporter in Asia, supplying buyers in Southeast Asia, but shipments have dwindled in recent years amid rising local consumption.

 

'The corn balance sheet in India is very tight,' Garima Jain, deputy CEO and head of grains for India at Louis Dreyfus Company, told Reuters.

 

 

'To meet domestic demand of poultry, starch and now ethanol, Indian corn production needs to increase at least 6-8% per annum, which is around 1.5 to 2 million tons per year. Considering an average yield of around 3 tons per hectare, either we need to increase yields or acreage under production.'

 

India's corn exports have almost ground to a halt since December due to a rally in local prices on strong demand from the poultry and ethanol industry, making shipments from the country more expensive than those from rivals, according to four exporters last week.

 

For India's wheat supplies, Jain said the country's stocks are above the government's buffer norms, even though inventories have dropped in recent years.

 

India has banned wheat exports since 2022 and there has been market talk about the country turning to imports to meet domestic demand.

 

However, India's trade minister said earlier this month the country is not planning to import wheat.

 

Wheat stocks at state warehouses stood at 16.47 million metric tons as of Jan. 1, the lowest since 2017.

 

'The food Minister is estimating and they have said that the wheat crop of India is going to be 114 million tonnes. So, keeping that in mind, we are at a very comfortable position,' she said on the sidelines of a commodities conference.