Duty concessions on Scotch whisky and electric vehicles and mobility of skilled workers are yet to be resolved in the proposed trade pact between India and the UK, and are likely to be taken up in the next round of talks in January, an official said on Friday.

 

India is also considering discussing longer transition period and tax restoration for its exporters once the UK's carbon border tax on imported goods kicks in from 2027, as part of the trade pact.

 

Yet, New Delhi remains hopeful of closing three trade pacts - with the UK, Oman and the European Free Trade Association (EFTA) - early next year, the official said.

 

Iceland, Liechtenstein, Norway, and Switzerland comprise the EFTA. In the negotiations with the UK, the two sides have resolved most of the issues related to rules of origin and intellectual property rights chapters, the official said.

 

The pact has 26 chapters.

 

The UK's demand for liberalisation of norms in services sectors like banking, insurance, and legal, and India's ask for easy movement of professionals are some of the unresolved issues.

 

'A few issues are also pending in the proposed bilateral investment treaty,' the official said. India is considering tariff rate quotas to meet the UK's demand for a reduction in import duties on its EVs as part of the proposed trade deal. The UK has also sought easier value addition norms for its EVs.

 

India's exports to Australia have increased by 14 per cent to USD 5.8 billion in April-November this fiscal on account of healthy growth in various sectors like engineering, pharma and electronics, a senior official said on Friday. Additional Secretary in the Department of Commerce Rajesh Agrawal said businesses of India and Australia are gaining from the interim free trade agreement, implemented on December 29 last year.

 

He also said negotiations to widen the existing trade agreement into a comprehensive deal are 'progressing well'.

 

'We expect to have some negotiations on rules of origin during January. That is one area where we have to work out detailed product-specific rules, and it takes time,' Agrawal noted.

 

 

Foreign direct investments have risen too from Australia to India at an annual average of USD 30-40 million to USD 300 million this year, he added.

 

India's imports from Australia, however, dipped by 19 per cent to USD 11.14 billion during April-November this fiscal.

 

According to the data provided by the department, bilateral trade during the period fell 10 per cent to USD 17 billion.

 

Export sectors, which have recorded healthy growth during the seven-month period of this fiscal, include engineering, pharma, electronics, spices, coffee, textiles, marine products, cashew and plastic.

 

'We are gaining market share in Australia. Preferential duties are working in favour of industry. We are diversifying our trade basket with Australia,' Agrawal said.

 

However, exports of gems and jewellery, and handicrafts have reported a negative growth.

 

On the import side, inbound shipments of gold jumped to USD 1.56 billion during April-October 2023 from USD 436 million in the same period last year.

 

Other import sectors recording healthy growth include pulses, metals, iron and steel, wood and wood products, machine tools and newsprint.

 

Presenting the data, Additional DGFT Tapan Mazumder said that export sectors where customs duty concessions have been given under the agreement also reported positive growth.

 

Those goods included gold jewellery studded with natural diamonds, non-galvanised pipe for oil and gas, unstudded gold jewellery, skirts and dresses made of material other than silk, dresses of artificial fibres and cotton garments.

 

When asked which country is gaining more from the agreement, Agrawal said, 'We have just completed a year, it is very early to say that'.

 

Commenting on the agreement, trade expert and Hi-Tech Gears Chairman Deep Kapuria said Australia holds immense importance for India in view of India's ambition of energy transition, which is critical for achieving net zero by 2070.

 

'A deeper trade agreement with Australia would help India in securing its needs of critical minerals,' Kapuria said.

 

Moldova’s Commission for Emergency Situations (CSE) said it has extended restrictions on the import of wheat, maize and sunflower seeds by three months in a bid to maintain sustainable prices on the domestic market.

 

Moldova limited grain imports from neighbouring Ukraine to protect local farmers in October, when it introduced a special licence.

 

Only entities engaged in animal production along with those active in the manufacturing of livestock feed, grain mill products, bread, fresh pastry goods and cakes, as well as oils and fats will be eligible for import licences, the CSE decided on Wednesday according to a document available on the Moldovan government’s website.

 

Import licences are issued by the agriculture ministry.

 

The licensing measure does not apply to seeds of wheat, maize and sunflower intended for sowing.

Russia’s Deputy PM & Trade Minister has welcomed an upcoming milestone in economic ties with India, while meeting the country’s top diplomat, currently on a five-day visit to Moscow and St. Petersburg.

 

Industry and Trade Minister Denis Manturov told External Affairs Minister S Jaishankar that despite the challenges faced by both countries, economic ties are developing rapidly.

 

'There is no doubt that Russian-Indian trade will exceed the significant milestone of $50 billion by the end of this year, and set a new historical maximum,' Manturov remarked.

 

The discussions took place at the ‘Russia’ expo, held at Moscow’s VDNKH complex, where 89 regions of Russia showcase their economic, scientific and investment potential. According to a Russian government statement, they addressed trade, investment, banking and logistics, along with energy and food security. 'Special attention was paid to advancing priority projects in industrial cooperation,' the note added.

 

New Delhi has ramped up imports of Russian commodities including oil and coal, and also strategic items including defense equipment. Diversification of trade, and the move towards transactions in national currencies, continue to hold prominence in bilateral discussions.

 

The sides are working on alternative transaction methods after the disruption caused by Russia's exclusion from the widely used international payment system, SWIFT.

 

Following the talks, the countries signed a memorandum of understanding between Roszdravnadzor – Russia’s healthcare regulator – and the Central Drugs Standard Control Organization of India.

 

Jaishankar announced a new agreement between India and Russia on the construction of additional reactors at the Kudankulam Nuclear Power Plant (KNPP) in India’s southern state of Tamil Nadu.

 

Currently, the project comprises two operational reactors with 1 GW capacity each, while an additional four are under construction. They are set to be completed by 2027, resulting in a total capacity of 6 GW.

With successfully exporting a trial shipment of fresh bananas to the Netherlands through sea route, India is now aiming to increase exports of this fruit to $1 billion in the next five years, an official said.

 

At present, exports of most of the fruits from India are happening by air route because of lower volumes and different ripening periods.

 

To increase the volumes, India is developing sea protocols for fresh fruits and vegetables like bananas, mangoes, pomegranates and jackfruit to promote their exports through ocean routes.

 

The protocol includes understanding voyage time, scientifically understanding the ripening of these commodities, harvesting at a particular time and training of farmers. These protocols will be different for different fruits and vegetables.

 

The Agricultural and Processed Food Products Export Development Authority (APEDA), along with other stakeholders, has developed these protocols for bananas. APEDA is an arm of the Commerce Ministry.

 

'With the successful trial shipment, India aims to export bananas worth over USD one billion in the next five years, opening doors to a diversified market portfolio through sea route,' the official said.

 

The trial shipment reached Rotterdam, Netherlands on December 5. The consignment was shipped from Baramati, Maharashtra.

 

India's banana export destinations extend beyond the Middle East, with potential opportunities in major global players like the U.S., Russia, Japan, Germany, China, the Netherlands, the UK, and France, the official added.

 

Despite being the world's largest banana producer, India's export share is currently just one per cent in the global market, even though the country accounts for 26.45 per cent of the world's banana production at 35.36 million metric tonnes.

 

In 2022-23, India exported bananas worth $176 million, equivalent to 0.36 MMT.

 

The main banana producing states include Andhra Pradesh, Maharashtra, Karnataka, Tamil Nadu, and Uttar Pradesh.

 

Assistant Professor and expert on Agri Economics Chirala Shankar Rao said that huge export potential for bananas is there from Andhra Pradesh.

 

APEDA's continuous efforts, including B2B exhibitions and the development of sea protocols for other fruits, highlight a proactive approach to boost India's agricultural exports, the official added.

In a bid to boost domestic supply and maintain stable prices, the government has announced that there will be no restrictions on the import of tur and urad dal until March 2025.

 

These pulses will continue to fall under the free category, allowing unrestricted imports.

 

'The free import policy of urad and tur stands extended up to March 31, 2025,' the Directorate General of Foreign Trade (DGFT) stated in a notification.

 

Currently, the free import policy for these pulses is set to expire in March 2024. Earlier this year, the government had permitted the import of tur, urad, and moong dal under the 'free category' starting from May 15, 2021, until October 31, 2021.

 

Thus, the import of tur and urad dal was then allowed to continue under the free regime.

 

In a first for Bangladesh, the commerce ministry yesterday decided to allow potato imports in an effort to increase supply of the tuber and thereby curb prices in the domestic market.

 

In a statement, the commerce ministry said it took the decision as potato prices have soared to a historic high of Tk 60 per kilogramme (kg) in Dhaka even though there was adequate local production.

 

'The commerce ministry has taken this decision in view of the current market situation,' said the statement by Md Haidar Ali, public relations officer of the commerce ministry.

 

The decision comes nearly one-and-a-half months after the government fixed the wholesale and retail prices of three essential commodities, including potato.

 

The commerce ministry, in consultation with the agriculture ministry, had fixed the retail price of potato at Tk 35 per kg and directed traders to comply.

 

However, the directive fell flat as potato, one of the most popular vegetables, is selling at much higher prices even though government agencies conducted drives in cold storages to prevent hoarding.

 

Traders blame lower production for the spiralling prices of the tuber.

 

But government agencies do not accept this claim as the Bangladesh Bureau of Statistics (BBS) estimates that 1.04 crore tonnes of potato were produced in the last harvesting season of fiscal 2022-23.

 

The amount produced was nearly 3 percent higher year-on-year, BBS data shows.

 

The Bangladesh Cold Storage Association (BCSA), members of which store potatoes for sale in the lean season, said the production estimate was incorrect.

 

'Prices shouldn't rise to such a high level if there was plenty of production. We could not increase the price last year as there was ample production,' said BCSA President Mostafa Azad Chowdhury Babu.

 

He said a maximum 30 lakh tonnes of potato, including seed potato, were kept in cold storages this year.

 

'So, where has the rest gone? Did people consumed the rest 80 lakh tonnes in January-May?' he asked while welcoming the decision to allow imports of the root vegetable.

 

'Imports will increase supply and thereby benefit people by reigning in the exorbitant prices for the crop,' he added.

 

Yesterday, the retail price of potato was Tk 55- 60 at markets in Dhaka, which was 32 percent higher from a month ago. Besides, it was double the rate on the same day of the previous year, according to market price data of the Trading Corporation of Bangladesh.

 

The root vegetable, depending on variety, was selling for as much as Tk 70 per kg outside Dhaka.

 

Mohammad Masum, chairman of Supreme Seed Company Ltd, a leading seed company, said the decision to allow potato imports is already late.

 

'Potato prices will begin declining after early varieties come to the market within a month,' he added.

 

In its statement, the commerce ministry said vested quarters are trying to make the potato market unstable.

 

Under this circumstance, it decided to allow imports and is calling upon interested businesses to apply for permission in this regard.

 

Md Rezaul Karim, director of the Plant Quarantine Wing of the Department of Agricultural Extension, said seed potatoes are mainly imported for cultivation.

 

'So, to my knowledge, no potato was ever imported for consumption in the past, he added.

The Philippines expects to receive over 500,000 metric tons (MT) of imported rice from Taiwan and India from December this year to February 2024, as the government prepares for the adverse effects of El Niño, the Department of Agriculture (DA) said.

 

'We received reports that around 100,000 tons of imported rice has already arrived in the country. This is part of the 495,000 metric tons committed by import permit holders to Secretary (Francisco) Tiu Laurel,' DA Undersecretary OIC for operations Roger Navarro said in a statement on Wednesday.

 

The Indian government committed 495,000 MT of rice to the Philippines while 40,000 bags of imported rice will come from Taiwan, totaling over half a million metric tons in compliance with the agreement between the agriculture chief and holders of rice import permits.

 

Some76,000 MT from the two countries are scheduled to arrive this December through early January, the DA said.

 

The Indian government committed 495,000 MT of rice to the Philippines while 40,000 bags of imported rice will come from Taiwan, totaling over half a million metric tons in compliance with the agreement between the agriculture chief and holders of rice import permits.

 

Some76,000 MT from the two countries are scheduled to arrive this December through early January, the DA said.

 

Delivery of the first batch of 20,000 bags of rice or 1,000 MT was completed before Christmas Day, part of the 40,000 bags committed by Taiwan

 

The DA said the incoming imports and the locally harvested rice will be sufficient for the country’s supply until the harvest season starts in March.

 

In July, the Indian government banned the export of its non-basmati white rice to protect its domestic rice supplies. It however resumed exporting in October with more than a million metric tons of rice to seven countries, of which 28% of the portion was allocated to the Philippines.

 

Last September, Malacañang issued an executive order implementing a rice price ceiling in the country after it detected a price surge.

 

Nationwide price caps for rice set

 

Lawmaker calls for probe into ‘uncoordinated’ rice regulation

 

'The BSP (Bangko Sentral ng Pilipinas) has aggressively raised interest rates since last year to tame inflation, which affects the purchasing power of consumers and undermines economic growth,' the DA concluded.

 

The DA noted that 36,000 metric tons per day, or around 1.08 million tons per month is the national rice consumption of Filipinos.

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 food processing sector plays an important role in increasing farm income and creating off-farm jobs, reducing post-harvest losses in agriculture and allied sector production through on- and off-farm investments in preservation and processing infrastructure. Accordingly, Ministry of Food Processing Industries has undertaken several initiatives to give impetus to development of food processing sector in the country and has made significant achievements in its schemes during FY 2023-24. The notable achievements over past year are as follows:

 

Increase in sectoral assistance through Ministry budget-

Government of India has allocated B.E. of Rs 3287.65 crore to Ministry for development of Food Processing Sector in year 2023-24, which marks an increase of about 73% from Revised Estimate (R.E) of Rs. 1901.59 crore in 2022-23.

 

Quantum jump in sectoral achievements -

The Gross Value Added (GVA) of food processing sector has increased from Rs.1.34 lakh Crore in 2014-15 to Rs 2.08 lakh crore in 2021-22.

The sector has attracted USD 6.185 billion FDI equity inflow during April 2014-March 2023.

The share of processed food exports in agri-exports has increased substantially from 13.7% in 2014-15 to 25.6% in 2022-23.

Food processing sector is one of the largest employment provider in the organised manufacturing sector with 12.22% employment in the total registered/organised sector.

Achievements under the schemes-

(A)Pradhan Mantri Kisan SAMPADA Yojana (PMKSY)

 

PMKSY was approved with an allocation of Rs. 6,000 crore for the period 2016-20 (extended to 2020-21) for 14th FC cycle and has been approved to be continued after restructuring during 15th FC Cycle with allocation of Rs 4600 Crore.

Since Jan 2023, So far, a total of 184 projects have been approved under various component schemes of PMKSY and a total of 110 projects have been completed resulting in processing & preservation capacity of 13.19 Lakh MT. The approved projects, on their completion, are expected to leverage investment of Rs 3360 Crore benefiting about 3.85 lakh farmers and are expected to result in more than 0.62 lakh direct/indirect employment.

In all, so far, a total of 1401 projects have been approved under various component schemes of PMKSY, since their respective dates of launch. Out of these, 832 projects have been completed resulting in processing & preservation capacity of 218.43 Lakh MT. The approved projects, on their completion, are expected to leverage investment of Rs 21217 Crore benefiting about 57 lakh farmers and are expected to result in more than 8.28 lakh direct/indirect employment.

PMKSY has made a significant positive impact in terms of increase in prices of the agricultural produce at farm gate and reduction in its losses. NABCON's evaluation study report on cold chain projects showed that completion of 70% of the approved projects has shown significant improvement in waste reduction up to 70% in case of fisheries and 85% in case of dairy products.

 

 

 (B) Pradhan Mantri Micro Food Processing Industries Upgradation Scheme (PMFME) –

 

Under Atmanirbhar Abhiyaan, the Ministry of Food Processing Industries launched a Centrally Sponsored Scheme named Pradhan Mantri Micro Food Processing Industries in June, 2020 to encourage 'Vocal for Local' in the sector with a total outlay of Rs 10,000 crore in the period of 2020-2025 for this scheme.

This is the first ever Government scheme for Micro Food Processing enterprises and is targeted to benefit 2 lakh enterprises through credit linked subsidy and adopting the approach of One District One Product.

Since Jan 2023, a total of 51,130 loans have been sanctioned under the credit linked subsidy component of the PMFME scheme, which is highest achievement during any calendar year since launch of the scheme. An amount of Rs 440.42 crore has been released as seed capital assistance to 1.35 Lakh Self Help Group (SHG) members. 4 Incubation Centers have been completed and inaugurated during the period providing product development support to grass-root Micro Enterprises.

Since the inception of the scheme, so far, a total of 65,094 loans have been sanctioned under the credit linked subsidy component of the PMFME scheme to individual beneficiaries, Farmer Producer Organizations (FPOs), Self Help Groups (SHGs) and Producer Cooperative Societies. An amount of Rs 771 crore has been released as seed capital assistance to 2.3 Lakh Self Help Group (SHG) members.

76 Incubation Centers have been approved to be set up in ODOP processing lines and allied product lines with an outlay of Rs 205.95 crore.

Production-Linked Incentive Scheme for Food Processing Industries (PLISFPI) –

In order to support creation of global food manufacturing champions commensurate with India’s natural resource endowment and support Indian brands of food products in the international markets, Central Sector Scheme- 'Production Linked Incentive Scheme for Food Processing Industry (PLISFPI)' was approved by Union Cabinet on 31.03.2021 with an outlay of Rs. 10,900 crore.  The Scheme is being implemented over a six-year period from 2021-22 to 2026-27.

The components of the Scheme are-  Incentivising manufacturing of four major food product segments viz. Ready to Cook/ Ready to Eat (RTC/ RTE) foods including Millets based products, Processed Fruits & Vegetables, Marine Products and Mozzarella Cheese (Category-I). The second component relates to production of Innovative/ Organic products of SMEs (Category-II). The third component relates to support for branding and marketing abroad (Category-III) to incentivise emergence of strong Indian brands for in-store Branding, shelf space renting and marketing. From the savings under PLISFPI, a component for Production Linked Incentives Scheme for Millet Based Products (PLISMBP) was also carved out from the scheme to encourage the use of Millets in RTC/RTE products and incentivizing them under the PLI Scheme to promote its production, value addition and sale.

On 10.08.2023, the proposal of the Ministry has been approved for inviting EoI for manufacture of Millet-based products (Millets 2.0) with an outlay of Rs. 1000 Crore arising out of the savings from the other segments.

A total of 176 proposals under different categories of Product Linked Incentive scheme for Food Processing sector (PLISFPI) have been approved so far. The scheme was likely to lead to investment of Rs 7722 Crore, increase in processed food sales turnover worth Rs 1.20 Lakh Crore and generate employment opportunities of 2.50 Lakh. With Incentives of Rs. 584.30 Crore released till date to the supported companies under the scheme, processed food sales turnover of about Rs 2.01 Lakh Crore, investment of Rs 7099 Crore and 2.36 Lakh employment generation has already been achieved through supported projects.

30 companies, including 22 MSMEs, are involved in the promotion of Millet based products under PLISMBP. The scheme envisages the use of a minimum of 15% millet content in the approved food products.

 

 

(4) Activities/Achievements as part of 'International Year of Millets (IYM)-2023)'-

 

Shree Anna has been one of the key focus areas of the Ministry in International Year of Millets.

Ministry has significantly augmented Shree Anna processing & preservation infrastructure through its schemes. 

30 Millet based proposals for Production linked Incentive with an outlay of Rs 800 Crore, which includes proposals from 8 large entities and 22 MSMEs, have been approved under PLISFPI.

 So far, a total of 1825 loan have been sanctioned amounting Rs. 91.08 Crore for individual millet processing units from various states under PMFME scheme.  In addition, Ministry has identified 19 districts with Millet Products as One District One Product (ODOP) under its PMFME scheme and has approved 3 Marketing & Branding proposals for Millet Products. Also, 17 incubation centres have been approved in 10 states having Millet Processing lines.

Ministry has also organized a series of Millet Roadshows/ conferences/exhibitions across 27 districts spread across the country. Two-day Millet Festival has been organized in  districts viz. Mandla (Madhya Pradesh), Bhojpur (Bihar), Vijayanagar (Andhra Pradesh), Agra (Uttar Pradesh), Madhurai (Tamil Nadu), Nuapada (Odisha), Mahabubnagar (Telangana), Jodhpur (Rajasthan), Khunti (Jharkhand), Tirap (Arunachal Pradesh), Almora (Uttarakhand), Palakkad (Kerala), Surat (Gujarat), Patna (Bihar), Ahmedabad (Gujarat), Chandigarh, Raipur (Chhattisgarh), Pune (Maharashtra), Jaipur (Rajasthan), Coimbatore (Tamil Nadu), Mandya (Karnataka), Kolkata (West Bengal), Amritsar (Punjab),  Hyderabad (Telangana), Jammu (Jammu & Kashmir), Port Blair (Andaman & Nicobar)  and Thane (Maharashtra) as part of the celebration of International Millet Year 2023.

(5) Activities/Achievements as part of 'International Year of Millets (IYM)-2023)'-

 

Ministry organized a Global Food Event 'World Food India' (WFI) during 3-5 November, 2023 at Pragati Maidan, New Delhi. The event provided supportive platform for interaction and synergy between producers, food processors, equipment manufacturers, logistics players, cold chain players, technology providers, Start-up & innovators, food retailors etc., and showcased the country as investment destination for Food Processing including possibilities for Shree Anna.

The Event was organized in Ground Floors of Halls Nos 1,2,3,4,5,6 & 14 (measuring 49,174 Sq meter of area) apart from open spaces of about 10,000 sq meter area in Paragti Maidan, New Delhi. Technical Sessions, Ministerial Meetings, Industry Roundtables apart from inaugural and valedictory sessions were held in Bharat Mandapam. The event was the one of the biggest congregation of senior government dignitaries, global investors and business leaders of major global and domestic agri-food companies. Key Components of the Events were - Exhibition, Conferences & Knowledge Sessions, Food Street, Sri Anna based activities, Indian ethnic food products and specific pavilion segments focussed on – (a) Fruits and Vegetables; (b) Dairy & Value-added dairy product; (c) Machinery and Packaging; (d) Ready to Eat/ Ready to Cook & (e) Technology and Innovations etc.

World Food India’ 2023 was inaugurated by Shri Narendra Modi, Hon’ble Prime Minister in the Plenary Hall of Bharat Mandapam on 3rd Nov 2023.  He inaugurated the exhibition in Hall No 14, visited MoFPI pavilion and portions of Technology Pavilion and interacted with select Industry Representatives in the inauguration. Valedictory session of 'World Food India 2023' held on 5th November at Bharat Mandapam was graced by the esteemed presence of the Hon’ble President of India, Smt Droupadi Murmu.

World Food India had extensive participation from stakeholders across the board, including more than 1200 national and international exhibitors, representatives from 90 countries, 91 Global CXOs, 15 overseas ministerial and business delegations and MoU/ Investment promise of above Rs. 33,000 crore. Different activities like Exhibitions, exclusive pavilions on Technology, Machinery, Sub-sectors etc, B2B, B2G meetings, 47 conferences/seminars were key attractions of the event. Ministry also organized global Reverse Buyer Seller Meet in association with D/o Commerce & its associated bodies i.e. APEDA, MPEDA/Commodity Boards as a part of the Event.