India, despite being one of the few developing countries self-sufficient in food, still shipped in $ 33 billion of farm products in 2023 with more than half of it just accounted for by vegetable oils, according to a report by trae policy think tank.

 

The imports in 2023 were 10% lower than last year’s $36.7 billion as vegetable oil prices eased during the year.

 

The imports of vegetable oil in 2023 is expected to be $17.1 billion, which is 18% lower than last year largely due to lower international prices. Pulses, another staple for which India is dependent on imports, accounted for $2.7 billion worth of imports in 2023 which was 44% more than last year, the report by Global Trade Research Initiative (GTRI) said.

 

Vegetable oil, Pulses, fresh and dry fruits account for 72.1% of Agriculture imports of India in CY2023.

 

'India needs to cut its reliance on imported vegetable oils to promote better health outcomes and also reduce the import bill. This will need educating consumers about the health benefits of using locally produced oils like mustard, groundnut, and rice bran in lieu of imported oils,' GTRI’s co-founder Ajay Srivastava said. High import duties and resisting pressure to open up are necessary to bolster domestic production and food security.

 

India is the world’s largest producer and consumer of pulses but more effort is needed to enhance domestic production and cut imports. This can be done by introducing high-yielding, disease-resistant pulse varieties. The key challenges include addressing water scarcity, and mitigating market volatility issues.

 

Major efforts extend to reclaiming fallow land, promoting intercropping, and focusing on rainfed areas. Also, the market and infrastructure support involve ensuring fair prices through Minimum Support Prices (MSP), investing in storage and processing, and establishing direct marketing channels.

 

Fresh and dry fruits imports are set to cross $ 4 billion in 2023. Major items of fresh fruit imports are apples ($ 350.7 million), Oranges ($ 90.9 million), Mandarins (Including Tangerines) ($ 14.8 million), Grapes ($ 22.1 million), Kiwi Fruit ($ 67.0 million), Pears ($ 26.9 million), Other Fruits, ($ 40.9 million). With dry fruits major items of import are cashew ($ 1.4 billion), almonds ($ 930 million), walnuts ($ 235 million), areca nuts ($ 130.2 million), dates ($ 210 million), dried figs ($ 127.2 million) and raisins ($ 75.7 million)

 

Cutting imports of fresh fruits will require addressing challenges faced by the Indian fresh fruit sector. These include the unavailability of high-quality seeds, resulting in lower yields. Inadequate storage and transportation facilities leads to substantial post-harvest losses. Also, the lack of strong branding hampers the industry’s competitiveness globally.

 

Spice imports in 2023 are expected to be $ 1.3 billion while sugar imports were $1.2 billion. India is the world’s largest sugar exporter after Brazil, but this year it will import sugar in vast quantities due to decline in domestic production caused by weak rains.

 

Major spices that are imported include pepper, cinnamon, cassia, clove, anise seeds, ginger, saffron and turmeric.

Litchi, the sweet and juicy fruit of India’s hot summers, is no longer restricted to Muzaffarpur in Bihar. It is now being cultivated across 19 Indian states, an official has told this reporter.

 

'It may sound ambitious but is true. Litchi cultivation for commercial purposes is going on in 19 states. We are providing technical help, plants and training to farmers with the sole aim of expanding the fruit's cultivation across India,' Muzaffarpur-based National Research Centre on Litchi (NRCL) director Bikash Das told this reporter. 

 

He said farmers in other states have been taking the lead to cultivate litchi for commercial production. This was not the case a few years ago. 'NRCL scientists are visiting farmers and boosting their confidence to go ahead with litchi cultivation. This is resulting in the expansion of litchi cultivation,' Das said.

 

Litchi cultivation for commercial production has started in Andhra Pradesh, Tamil Nadu, Karnataka, Uttar Pradesh, Himachal Pradesh, Madhya Pradesh, Odisha, Manipur, Assam, Punjab, Maharashtra, Jammu and Kashmir, Gujarat, Arunachal Pradesh, Rajasthan and Mizoram. More than 0.1 million hectares of land are under litchi cultivation in India as per latest official data.

 

The NRCL is preparing thousands of litchi saplings at its nursery each year. It is doing so to supply them to farmers in different states. The centre provides saplings of its famous Shahi litchi, besides popular varieties like China, Gandki Lalima, Gandki Sampada and Gandki Yogita, to farmers in other states.

 

Das said the litchi cultivation expansion plan was based on a scientific study that found suitable soil and climate for the fruit’s cultivation in other states.

 

NRCL scientists pointed out that litchi is considered to be a very sensitive fruit as far as temperature, rainfall and humidity are concerned. Besides, it require soil suitability as well. Variations in temperature and unfriendly climatic conditions have badly hit litchi crops in recent years as the fruit can crack, becoming smaller in size and less sweet and juicy.

 

Litchi cultivation may have expanded. But it will take some time for this to transform into fullscale commercial production, Das said. Saplings planted in orchards take a few years to bear fruit.

 

The fruit mainly grows in the foothills of the Himalayas in Uttarakhand, Bihar, West Bengal and Jharkhand. Litchi cultivation is spread across over 32,000 hectares in Bihar alone. This accounts for nearly 40 per cent of India’s litchi production. Bihar is followed by West Bengal (12 per cent of the total) and Jharkhand (10 per cent).

 

Litch was sporadically cultivated earlier in Odisha, Chhattishgarh, Madhya Pradesh and Assam. But this was not for commercial production. NRCL scientists introduced litchi cultivation on a small scale in a few pockets of Karnataka and Kerala some years back. But it was not expanded on a large scale. In Karnataka, litchi hatvest takes place in the winter, unlike summer in north India.

The government is working on boosting domestic manufacturing and increasing exports to USD 500 billion by 2030 from 10-11 sectors, including automobiles, pharma, textiles, medical devices and chemicals, a senior official said on Thursday. These issues were discussed during a meeting called by the Commerce and Industry Ministry on Thursday.

 

The meeting was convened by the Department of Promotion of Industry and Internal Trade (DPIIT) in collaboration with Invest India and SCALE (Steering Committee for Advancing Local Value-Add and Exports) Committee to unveil outcomes and recommendations made during the Chintan Shivir for Manufacturing, held on October 12 at Bharat Mandapam here.

 

The 11 sectors are auto components, automobiles (including EVs), capital goods, chemicals, drones, medical devices, aerospace and defence, leather and footwear, textiles, and space.

 

'We are looking at investments in these sectors. We will drill down to each of the areas to see how to promote manufacturing and we have kept a target to increase exports in these 10-11 sectors from USD 160 billion to USD 500 billion by 2030,' the official added.

 

Overall, the ministry is looking at taking the country's goods and services exports to USD 2 trillion by 2030.

 

The Chintan Shivir witnessed the participation of industry leaders, knowledge partners, and government officials from focus sectors.

 

The deliberations centred on the current scenario, challenges and recommendations tailored to stimulate the country's manufacturing landscape.

 

The meeting was presided over by Commerce and Industry Minister Piyush Goyal, Chemicals and Fertilisers Minister Mansukh Mandaviya and Heavy Industries Minister Mahendra Nath Pandey.

 

When asked about the government's plan to come out with a policy for the electric vehicles (EVs) sector, the official said: 'We have to get all the countries on board such as Germany, Korea and Italy. We should invite everybody'.

 

The government on Friday said there are 'strictly' no plans to impose the minimum export price (MEP) on all agricultural products. Additional Secretary in the Department of Commerce Rajesh Agrawal said that there is no such intention of the government to look into exports of all agri products.

 

'Just want to clarify that the government has no intention to put in MEP on all agri products or review all agri products from the export perspective. There is no such decision. The government has strictly no such plans,' he told reporters here.

 

An inter-ministerial committee, which looks into MEP on onion, has recently decided on basmati rice.

 

He said that the committee getting a wider mandate does not mean that 'the committee is there to look into each agri product and start recommending MEP for that'.

 

He informed that despite banning exports of non-basmati white rice, India has allocated 13 lakh tonnes of rice for exports to over 14 countries for their food security issues.

 

The area under wheat during the on-going rabi season has been reported higher at 239.79 lakh hectares (lh) in top four producing States — Uttar Pradesh, Madhya Pradesh, Punjab and Haryana until Friday in the on-going season against 237.37 lh in the year-ago period, up by 1 per cent. These four States together share 75 per cent of the country’s total wheat acreage.

 

After exceeding the season’s normal area of 307.32 lh last week, pan-India wheat acreage further narrowed the deficit to about 4 lh until Friday. Latest data show that wheat acreage has reached at 320.54 lh compared with 324.58 lh year-ago. The deficit was 2 per cent until December 22. Sowing of wheat with late varieties will continue till the first week of January, officials said.

 

The area sown under all rabi crops during 2023 reached 629.65 lh until December 29, which is over 97 per cent of the normal area of 648.33 lh. As it is still down by 3 per cent from 646.16 lh during the same period a year ago, the season may end with a deficit of 1-2 per cent mainly due to decline in pulses acreage, experts said.

 

Lentil up a tad

Rabi pulses acreage has reached 142.49 lh compared with 153.22 lh, down by 7 per cent as gram (chana) acreage has been consistently lower throughout. Lentil (masur) has improved to 18.68 lh, a tad higher from 18.02 lh year-ago. The sowing area of major rabi pulse gram is down by 8 per cent at 97.05 lh from 105.8 lh. So far, 96 per cent of normal area of 100.92 lh under gram has been covered.

 

Mustard acreage continued its march ahead throughout the season to 97.29 lh as of December 29, up 2 per cent from 95.63 lh in the corresponding period last year. All rabi oilseeds acreage has been reported at 104.96 lh, higher from 105.15 lh a year ago, in which groundnut area is down by 1.02 lh at 3.32 lh. Though groundnut is a kharif crop, it is also grown on about 7 lh during winter, mainly in Karnataka, Tamil Nadu, Telangana, Andhra Pradesh and Odisha.

 

Paddy acreage slips

Paddy acreage reached 14.36 lh against 16.57 lh year-ago and maximum area has been reported from Tamil Nadu at 10.45 lh. The normal area under winter paddy is 52.5 lh and the government expects to achieve normal area or more.

 

In coarse cereals, the sowing area has reached 47.29 lh, up by 1 per cent from 46.64 lh. Jowar acreage has been reported at 21.04 lh, lower from 21.19 lh and maize reached a tad higher with area of 17.53 lh against 17.51 lh year-ago. Barley sowing is up 9 per cent at 8.01 lh against 7.32 lh year-ago.

Days after allowing duty-free import of masoor (lentil), the Indian government on Thursday extended by another year the free import policy, without quantitative restrictions, on tur (pigeon pea) and urad dal (black matpe) till March 2025, potentially helping higher domestic supply and keeping prices under control.

 

'The free import policy of urad and tur stands extended up to March 31, 2025,' the Directorate General of Foreign Trade (DGFT) said in a notification. The free import policy for these pulses was valid until March 2024.

 

The government had allowed the import of tur, urad and moong dal under the ‘free category’ with effect from May 15, 2021 and it was valid till October 31, 2021. Subsequently, it got extended as domestic production was hit with lower rainfall in key producing states.

 

The Centre on December 21 extended the import duty exemption on masur dal (lentils) by another year till March 31, 2025. Import of lentils are being allowed duty-free to help contain inflation. In the normal course, imports attract 30 per cent Customs duty. 'The extension of duty exemption by an year will benefit the importers and will boost the supplies,' Bimal Kothari, Chairman, India Pulses and Grains Association had said.

 

Rabi area down

The imports of masur have seen a considerable increase in the current financial year with a section of consumers of tur dal shifting to masur dal in the recent months. Pulses led by tur dal have turned expensive this year with the erratic monsoon impacting the domestic output and fuelling food inflation. According to the trade estimates, the high price of tur dal has seen demand destruction of around 15-20 per cent with consumers shifting to other pulses.

 

The overall acreage under the rabi pulses was down at 137.13 lh over 148.53 lh a year ago, largely on account of dip in chana acreages. According to agriculture ministry estimates, tur production is likely to rise from 33.12 lakh tonnes (lt) in kharif 2022 to 34.2 lt in kharif 2023, though it is way off the target of 43 lt fixed for current year. Experts doubt the production estimates as there was a decline in acreage.

 

The ministry has estimated main kharif season urad production this year to drop to 15.05 lt from 17.68 lt previous kharif. In total urad production the kharif season contributes 75 per cent while Rabi crop provides another 25 per cent.

 

The already strong India-UAE ties transcended to a truly multilateral level in 2023 with the announcement of the strategically important India-Middle East Economic Corridor and the expansion of the BRICS grouping to include the key Gulf nation.

 

The bilateral ties have witnessed qualitative and quantitative progress with Prime Minister Narendra Modi giving top priority to enhance India's relations with the UAE and its top leadership.

 

The BRICS summit in August, during which the UAE joined the group, and the announcement of the India-Middle East Economic Corridor (IMEEC) in New Delhi during the G20 summit in September were the highlights of the level of cooperation.

 

The new member nations will become part of BRICS (Brazil-Russia-India-China-South Africa) with effect from January 1, 2024. The inclusion represents a strategic step for the UAE and consolidates its global economic and diplomatic engagements.

 

The proposed IMEEC will comprise an eastern corridor connecting India to the Gulf region and a northern corridor connecting the Gulf region to Europe.

 

India will be linked to Europe by a railway line and existing ports through UAE, Saudi Arabia, Jordan, and Israel.

 

Throughout 2023, the India-UAE relationship saw significant advancements, especially in trade, defence, and multilateral cooperation.

 

The India-UAE Comprehensive Economic Partnership Agreement (CEPA), implemented on May 1, 2022, significantly impacted bilateral trade.

 

In the fiscal year 2022-23, trade between the two countries reached a historic high of around USD 84.5 billion, marking a year-on-year increase of 16 per cent.

 

Indian exports to the UAE also recorded remarkable growth, reaching USD 31.6 billion, a 12 per cent increase from the previous year.

 

The agreement eliminated duties on many tariff lines and covered many sectors, benefiting industries like oil seeds, beverages, textiles, and pharmaceuticals.

 

Prime Minister Narendra Modi's visit to the UAE in July 2023 marked his fifth visit to the country since being elected.

 

The visit included wide-ranging talks on bilateral relations, shared interests in promoting global growth, and further collaboration in various fields.

 

The leaders discussed matters of mutual interest, including international issues concerning COP28 and India's G20 presidency.

 

Both countries agreed to strengthen bilateral maritime security and connectivity collaboration and enhance defence exchanges, sharing experiences, training, and capacity building.

 

India and the UAE reaffirmed their joint commitment to combat extremism and terrorism, including cross-border terrorism, at regional and international levels. They emphasised the importance of promoting peace, moderation, coexistence, and tolerance.

 

The first meeting of the joint committee under the CEPA set a target to more than double non-petroleum trade to USD 100 billion by 2030. The meeting also involved discussions on various matters related to the agreement's implementation and addressing issues that could hinder its effectiveness.

 

During Prime Minister Modi's visit, delegation-level talks focused on strengthening bilateral trade, energy, defence, and food security cooperation.

 

Leaders also discussed enhancing cooperation on delivering ambitious outcomes at COP28 for sustainable development.

 

These developments reflect a deepening and multifaceted India-UAE partnership, focusing on economic growth, security, and multilateral cooperation.

 

The cooperation between India and the UAE reached its pinnacle at the COP28 climate summit in Dubai.

 

PM Modi also visited Dubai for the 28th Session of the United Nations Framework Convention on the Climate Change (UNFCCC) Conference of Parties (COP28) hosted by the UAE. He met Sheikh Mohamed bin Zayed Al Nahyan, President of the UAE, on the sidelines of the summit and reviewed wide ranging and vibrant bilateral ties.

 

During the year, India and the UAE collaborated closely on addressing the global challenge of climate change.

 

Both countries emphasised the urgent need to address climate change through collective global action, respecting the foundational principles of the UNFCCC and the Paris Agreement.

 

They committed to enhancing cooperation on climate ambition, decarbonisation, and clean energy.

 

The leaders underscored the need for developed countries to fulfil their financial commitments, notably the USD 100 billion delivery plan, to support developing countries in climate action.

 

They urged international financial institutions and multilateral development banks to reform financial mechanisms to support climate change initiatives in developing countries.

 

Both countries recognised the significant impact that sustainable and environment-friendly behaviours of individuals can have on a mass scale.

 

They emphasised the importance of promoting awareness of sustainable lifestyles and nudging individuals towards environment-friendly choices.

 

Both countries also affirmed the significance of India's G20 presidency in fostering international cooperation in combating climate change. They stressed the importance of finance and technology as critical enablers in this effort.

 

Overall, India and the UAE showed a united front in their determination to ensure a successful and action-oriented COP28, aiming to build new momentum for effective climate action and international cooperation.

 

The cooperation between India and the UAE on multilateral platforms such as the G20 and BRICS evolved significantly during 2023, marked by mutual support and collaboration.

 

The UAE demonstrated strong support for India's presidency of the G20 in 2023.

 

This support indicates the UAE's priority on its relationship with India, reflecting their shared interests in addressing global challenges. The UAE's backing is crucial as India seeks to amplify and integrate the voice of the global South in the G20 agenda.

 

This expansion of BRICS with the UAE's membership underscores the growing importance of emerging economies in the global order.

 

'The UAE is committed to multilateral action, and constructive dialogue which is fostered through active platforms that represent developing and emerging economies at an international level,' the UAE's Ministry of Foreign Affairs said in a statement.

 

'In this regard, becoming a member of an extended BRICS grouping reflects the UAE's keenness to champion the value of multilateralism in supporting peace, and development for the benefit and the wellbeing of peoples and nations across the world,' it said.

 

On the other hand, as the host of the G20 summit in 2023, India invited the UAE to be a special guest. The invitation was extended during bilateral talks between the external affairs ministers of the two countries.

 

It highlights the strong bilateral relations and the increasing synergy between India and the UAE in international forums.

 

Both countries have discussed various areas of cooperation, including energy, healthcare, defence, space, and climate change.

 

These discussions are part of the broader cooperation in the UN Security Council and reflect their commitment to addressing global issues collaboratively.

 

Prime Minister Modi will again be visiting the UAE to inaugurate the first Hindu temple in Abu Dhabi in February next year.

Litchi, the sweet and juicy fruit of India’s hot summers, is no longer restricted to Muzaffarpur in Bihar. It is now being cultivated across 19 Indian states, an official has told this reporter.

 

'It may sound ambitious but is true. Litchi cultivation for commercial purposes is going on in 19 states. We are providing technical help, plants and training to farmers with the sole aim of expanding the fruit's cultivation across India,' Muzaffarpur-based National Research Centre on Litchi (NRCL) director Bikash Das told this reporter. 

 

He said farmers in other states have been taking the lead to cultivate litchi for commercial production. This was not the case a few years ago. 'NRCL scientists are visiting farmers and boosting their confidence to go ahead with litchi cultivation. This is resulting in the expansion of litchi cultivation,' Das said.

 

Litchi cultivation for commercial production has started in Andhra Pradesh, Tamil Nadu, Karnataka, Uttar Pradesh, Himachal Pradesh, Madhya Pradesh, Odisha, Manipur, Assam, Punjab, Maharashtra, Jammu and Kashmir, Gujarat, Arunachal Pradesh, Rajasthan and Mizoram. More than 0.1 million hectares of land are under litchi cultivation in India as per latest official data.

 

The NRCL is preparing thousands of litchi saplings at its nursery each year. It is doing so to supply them to farmers in different states. The centre provides saplings of its famous Shahi litchi, besides popular varieties like China, Gandki Lalima, Gandki Sampada and Gandki Yogita, to farmers in other states.

 

Das said the litchi cultivation expansion plan was based on a scientific study that found suitable soil and climate for the fruit’s cultivation in other states.

 

NRCL scientists pointed out that litchi is considered to be a very sensitive fruit as far as temperature, rainfall and humidity are concerned. Besides, it require soil suitability as well. Variations in temperature and unfriendly climatic conditions have badly hit litchi crops in recent years as the fruit can crack, becoming smaller in size and less sweet and juicy.

 

Litchi cultivation may have expanded. But it will take some time for this to transform into fullscale commercial production, Das said. Saplings planted in orchards take a few years to bear fruit.

 

The fruit mainly grows in the foothills of the Himalayas in Uttarakhand, Bihar, West Bengal and Jharkhand. Litchi cultivation is spread across over 32,000 hectares in Bihar alone. This accounts for nearly 40 per cent of India’s litchi production. Bihar is followed by West Bengal (12 per cent of the total) and Jharkhand (10 per cent).

 

Litch was sporadically cultivated earlier in Odisha, Chhattishgarh, Madhya Pradesh and Assam. But this was not for commercial production. NRCL scientists introduced litchi cultivation on a small scale in a few pockets of Karnataka and Kerala some years back. But it was not expanded on a large scale. In Karnataka, litchi hatvest takes place in the winter, unlike summer in north India.

Around 30 companies, including 22 MSMEs, are taking advantage of the Production-Linked Incentive (PLI) scheme for manufacturing millet-based products, according to the Ministry of Food Processing Industries. The PLI for Millet Based Products (PLISMB) was carved out of the savings of the main PLI Scheme for the Food Processing Industries (PLIFPI) to encourage the use of millets in Ready to Cook/Ready to Eat (RTC/RTE).

 

According to the ministry, around 30 companies, including 22 MSMEs, are involved in the promotion of millet-based products under the PLISMBP.

 

The PLISMBP scheme -- approved in August with an outlay of Rs 1,000 crore arising out of the savings from other segments -- envisages the use of a minimum of 15 per cent millet content in the approved food products, it said in a statement.

 

Otherwise, under the PLISFPI, 176 proposals under different categories have been approved so far and about Rs 584.30 crore incentive has been released, it added.