A global shortage of the spice, fuelled by reduced supply from China, the largest producer, has been driving up garlic export volumes from India.

China has a 75 percent share of the global garlic output, at over 23 million tonnes. India stands next, though with a much lower production of 3.3 million tonnes.

 

In FY23, a production shortfall of garlic in China led to record exports of garlic from India. But in the current year, exports are doing even better and are likely to touch a new peak. As per the latest Spices Board data, at 56,823 tonnes valued at Rs 277 crore for the period April–September 2023–24, exports were 110 percent higher in terms of quantity and 129 percent higher in terms of value over the same period of the previous year.

 

In FY23, garlic exports reached a new high of 57,346 tonnes valued at Rs 246 crore. In the past six months, while the quantity has inched close to the annual export volume last year, the value has already crossed last year’s level.

 

There was a 159 percent rise in quantity and a 32 percent increase in value year-on-year (YoY) in FY23. This was the first time garlic exports from India crossed the 50,000-tonne mark. The previous high was 47,000 tonnes in 2017–18.

 

Interestingly, this happened when the overall spice export volumes fell by 8 percent during the year, with heavyweights such as chilli, cumin, spice oleoresins, and mint products showing a decline in export quantities. Also, this was a period of high domestic and international prices of Indian garlic. International prices of Indian garlic are currently around $1,800 per tonne, compared to $1,350 per tonne of China, according to exporters.

 

Wholesale garlic prices are hovering around Rs 240 per kg, pushing retail prices to the range of Rs 260–265 per kg in the domestic market. 'Prices reached this level in the last couple of weeks. As a result, offtake by shops has declined. This is the highest price so far. Prices had reached Rs 180 per kg two years ago,’’ said Sujesh, a wholesale garlic merchant in Kerala.

 

Garlic prices have escalated as the old stock is wearing thin and export demand is shooting up. Though the new crop in the next year is expected to be higher, rising demand could keep prices up. 'We are expecting a crop of 3.6 to 3.75 million tonnes in place of 3.3 million tonnes in the last season,’’ said Vijay Hotwani, Managing Director of Varchasva Agro, an exporting firm based in Madhya Pradesh.

 

Sowing has increased by 30 percent for the next season. But higher production will depend on weather conditions, he said. Madhya Pradesh is the largest garlic-producing state, accounting for around 65 percent of the output. The other major producers are Rajasthan, Uttar Pradesh, and Gujarat.

 

Hotwani feels the current price trends will continue until the harvest in February-March. 'After that, prices could slacken, which may boost exports. Our prices could fall to $900 per tonne next year, which could be below the garlic price in China,’’ he pointed out.

 

The global shortage has prompted several countries that are not traditional buyers of Indian garlic to turn to the country for the spice. Indian garlic is mostly preferred by Asian countries, such as Bangladesh, Malaysia, Thailand, Vietnam, and Nepal. But Latin American countries like Brazil raised their offtake from India last year. 'They used to buy from China but have now shifted their focus to India,’’ Hotwani said.

 

Almost 70 percent of the garlic export output is in fresh form, while the rest mostly comprises flakes and granules, demand for which has been rising in recent times, especially from Western countries.

 

The US, Europe, and West Asia usually prefer Chinese garlic, which comes in bigger sizes, more colour, and less pungency. But some of these countries, particularly West Asian countries, the US, and Russia, are buying more Indian garlic flakes. 'Indian garlic flake prices, which were hovering below Rs 100 per kg, have touched Rs 105 per kg now. However, demand has increased as there is no buffer stock in China. Production is just enough to meet the demand there,’’ said Murtuza Badami, MD, Murtuza Foods Pvt. Ltd.

 

A September market report by Olam Group, a major global agri-products company, points out that garlic planting for the 2023 crop in China was 15-20 percent lower than the previous year because of COVID-19 conditions, slow demand for fresh garlic, weak prices, and higher support prices for wheat.

The government has extended the export ban on de-oiled rice bran, a major ingredient in preparation of cattle and poultry feed, till March 31 next year, according to a notification. It was first banned in July this year.

 

'Export prohibition of de-oiled rice bran is extended till March 31, 2024,' the directorate general of foreign trade has said in a notification.

 

According to experts, rise of prices of the feed is one of the major reasons for increasing milk prices in the country and putting a ban on the exports can help increase availability of the product in the domestic market, thereby containing rates.

 

However, Solvent Extractors Association of India had earlier asked the government to reconsider its decision on banning the exports as the move is likely to have minimal impact on the prices of cattle feed and milk.

 

As per estimates, in cattle feed, about 25 per cent rice bran extraction is used.

The new season Indian origin soyabean has fetched encouraging demand in the international market with exports in November up by more than 13 per cent at 1.50 lakh tonnes as against the corresponding period a year ago, a trade body said on Saturday.

The trade body, Soybean Processors Association of India (SOPA) said, India’s export of soyabean meal in November stood at 1.50 lakh tonnes, up 13.6 per cent from the previous year.

 

Exports in the first two months of the new oil year October and November stood at 2.50 lakh tonnes as against 1.81 lakh tonnes a year ago in the same period, data compiled by the trade body showed. The oil year runs from October to September.

SOPA executive director DN Pathak said, 'Exports in November this year is up by more than 13 per cent from a year ago on higher demand and sufficient availability in the market.'

 

Soyabean exporters said demand for the new season harvest is good from traditional buyers. Madhya Pradesh is a leading soybean producing state in the country contributing over 60 per cent in total production and is a major trading centre. tnn

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India bans onion exports till March next year

The government has prohibited onion exports until March 2024 to ensure more onions are available domestically and to stabilize prices, according to a notification by the Directorate General of Foreign Trade.

India is aiming to achieve the $2 trillion export target by 2030 and in the process it is moving this industry out of the government support to make it self-sustaining and cost competitive, Union minister Piyush Goyal said on Saturday.

 

Addressing Infinity Forum 2.0 virtually at Gujarat Finance Tec-City (GIFT City), he said the International Financial Services Centre (IFSC) at GIFT City has become a lynchpin in propelling India's export-led growth.

 

GIFT City will play a pivotal role in powering India's exports to $2 trillion by 2030, and then onwards to up to $10 trillion that it envisages to see by 2047, said the Union Commerce and Industry Minister.

Indian food processing sector needs to tap into innovation opportunities for traditional foods and Ayurveda Aahara. This is an untapped sector and would give companies a first mover advantage, according to D B Anantha Narayana, CSO, Ayurvidye Trust, Bengaluru and Chairman of Expert Committee Nutra-FSSAI.

 

Speaking at the 9th International Food Convention (IFCoN)-AFSTI hosted in the CSIR-CFTRI campus, Mysuru, from December 7 to 10, 2023, Dr Narayana said both Indian and the international food sectors need to look at these innovations. This is so far untapped. Companies foraying into this arena can maximise the first mover advantage. This is also important for startups to develop and scale up such products.

 

Some of these are infant foods which is a pristine area for growth. The FSSAI has issued Foods For Infant Nutrition Regulations, 2020, which have been enforced from October 1,  2022, and there is immense scope to explore this area, he added.

 

Noting that there is a huge opportunity for the development of traditional food for infants which can be formulated using rice, rice flour, wheat flour,  semolina, pulses and other cereals, spices, dry fruits and vegetables, milk, ghee and eggs.

 

These can be developed in a ready-to-use or reconstituted with milk, water, curd or any other medium appropriate for infants. The food processor should provide clear instructions to prepare the food.

 

These can succeed in the market going by the appropriate technologies and packaging formats to retain nutritional, physical and sensorial qualities. However, it is mandatory to ensure that these are prominently labelled as ‘Traditional Food for Infants’.

 

There are also exhaustive offerings for infant food processing like cooked lentils, cereals, dry fruits, grains mashed to a pasty mass sweetened with sugar or jaggery or honey.

 

'Even cooked vegetable mashed to pasty form either sweetened or with ghee which can be prepared fresh at home. Also there are ragi and corn malt mixes, semolina or sooji based foods that can be blended with either milk or curd or ghee. All these examples have escaped attention of food sector,' said Dr Narayana.

 

Referring to the highlights of Ayurveda Aahara regulations notified in 2022, he said that these are not intended for administration to infants up to 24 months. 'Food Business Operators would need to formulate Ayurveda Aahara in accordance with the categories and requirements specified in Schedule B of the regulations. No vitamins, minerals and amino acids can be added to Ayurveda Aahara. The recipes are as per Granthas-Food basis. Inherent Vitamins, Minerals and Nutrients present can be claimed. Health benefit claims as per the Grantha is permitted,' he said. 

 

Some of these for adults could be Methi Ka Laddoo, which contains fenugreek seeds roasted, cooked in jaggery, with little cardamom powder and pepper. The innovations permitted here are adding ginger powder as it is anti-inflammatory, shatavari and jeera or cumin seeds.

 

In the case of pepper rasam, which is recommended in winter or for conditions like rhinitis, can also be consumed to improve immunity. The processor can consider a change in format from liquid to granules or cubes which could dissolve in hot water.

 

Indian food processing sector can consider such innovation as it provides it a competitive advantage. Going by India’s diverse agro-climatic conditions, there is a wide-ranging and large raw material base suitable for food processing industries, according to Dr Narayana.

The Ministry of Commerce has already sent a letter to the Bangladesh High Commission to take the necessary action in this regard.

 

Besides, all the respective deputy commissioners have been asked to ensure strict monitoring in their respective areas so that onion is being sold at the kitchen market at a rational price.

 

The price of onion shot up in the local market after India extended restrictions on onion exports on 7 December. But, before India's move, LCs were opened in Bangladesh for importing some 52,000 metric tonnes of onion from India. The government has now initiated the process of importing that quantity of onion from India soon.

 

Talking to BSS, Commerce Ministry Senior Secretary Tapan Kanti Ghosh said an initiative has been taken to import 52,000 metric tonnes of onion from India as soon as LCs in this regard were opened earlier before the restriction was extended by the neighbouring country.

 

'We've taken various initiatives to keep the price of onions under control. Efforts are also on to increase the import of onion from alternate countries. Alongside these, the sale of onion will continue among the low-income group of people by the TCB,' he said, adding that the concerned deputy commissioners have been asked to monitor the selling of onion at a rational price in the districts.

 

The commerce ministry senior secretary also called upon the business community of the country to become more responsible so that the common people do not suffer from the higher prices of essential items.

 

'It's not always right that the government will fix everything. The businessmen will also have to perceive that businesses are meant for the country's people. On the day the Indian government imposed restrictions on onion exports, the price of onions skyrocketed in our country. Such behavior from the business community is deemed irresponsible,' Tapan added.

 

Earlier in the day while addressing a seminar at the NBR Bhaban in the capital's Agargaon area on the National VAT Day, Tapan questioned how the price of onion could rise by Tk80 per KG in the country within a span of one day. 

 

'How could a trader who sold onions at Tk120 per KG one day earlier, sell that item at Tk200 per KG the next day? It would have taken a lot of time to let the price rise. But, the businesses didn't show any morality for being profit-mongers in this regard,' he added.

 

The Senior Commerce Secretary also informed that the Directorate of National Consumer Rights Protection (DNCRP) has been conducting countrywide drives to keep the prices of essentials, including onion, under control.

The Union Ministry of Food Processing Industries (MoFPI) has been implementing an umbrella scheme- Pradhan Mantri Kisan Sampada Yojana (PMKSY) since 2017-18 across the country. PMKSY is a comprehensive package of component schemes, which is aimed at the creation of modern infrastructure with efficient supply chain management from farm gate to retail outlet. It provides a big boost to the growth of the food processing sector in the country, helps in providing better prices to farmers, creates huge employment opportunities, especially in rural areas, reduces wastage of agricultural produce, increases the processing level, and enhances the export of processed foods. Under the following component schemes, financial support in the form of grants-in-aid is provided for setting up of food processing projects across the country:

 

Mega Food Parks scheme (discontinued w.e.f. 01.04.2021)

Integrated Cold Chain and Value Addition infrastructure

Creation of Infrastructure for Agro Processing Cluster

Creation/ Expansion of Food Processing and Preservation Capacities

Creation of Backward and Forward Linkages (discontinued w.e.f. 01.04.2021)

Operation Greens: Long Term Interventions

Food Safety and Quality Assurance Infrastructure – Setting up / upgradation of quality control/ food testing laboratories

Human Resource & Institutions

A total of 1,132 projects for food processing have been approved in the 36 states/UTs with a total project cost of Rs 23,071.29 crores, to create a processing capacity of 252.297 lakh tpa, preservation capacity of 42.908 lakh tpa, employment of 6,02,070 persons and providing benefits to 38,19,220 farmers.

 

The details of physical targets proposed by the Ministry for the 15th Finance Commission Cycle period (2021 – 26).

The global organic market is experiencing a remarkable surge. This is driven by increasing consumer awareness and growing demand for healthier and sustainable food options. In India as well the organic food sector is witnessing a significant shift in preferences. Consumers are seeking products that align with principles of sustainability, mindfulness and environmental consciousness.

 

The ready-to-eat (RTE) sector is witnessing a surge in demand for food that is convenient, organic, and nutritious. India holds a special place among the 187 nations that practice organic agriculture, With 9.12 million acres, India is home to 30 per cent of all organic producers globally. With the increase in demand for organic produce, there is a need for a robust system to validate and guarantee the authenticity of organic products. This is where certifications come in. Certifications ensure transparency and authenticity.

 

Consumers turn health conscious

India’s organic market has witnessed growth especially post-pandemic. Consumers, primarily in the urban landscape have become more health-conscious and environmentally aware. Despite the promising trajectory, the Indian organic market faces challenges. There is a considerable gap in awareness and understanding of organic farming practices among consumers. Additionally, con-cerns about the authenticity of organic products persist. Certifications help in overcoming these challenges.

 

Here’s how

• Trust building - Certification plays a pivotal role in the organic market. They act as a quality assurance mechanism for consumers and a market differentiator for producers. It serves as a guarantee that agricultural products meet stringent organic standards, assuring consumers of adherence to environmentally friendly and sustainable practices. Certification fosters trust in the organic label, empowering consumers to make informed choices.

 

Awareness

Several certifications contribute to the credibility of organic products in India. The India Organic certification, USDA Organic, and Jaivik Bharat are among the prominent standards. In a survey conducted by Rakuten Insight about the awareness among Indian consumers regarding various certifications of organic food products in September 2023, India Organic was the certification that most respondents were aware of, accounting for 74 per cent followed by the EU Certified Organic food label accounting for approximately 30 per cent of the respondents.

 

• Lucrative opportunities - For producers, organic certification opens access to a lucrative market, as consumers increasingly prioritize health and sustainability. In the financial year 2020, the organic packaged food market size was about 11 billion Indian rupees in India. It is projected to increase to 30 billion Indian rupees in the fiscal year 2030. Consumers are willing to pay a premium for certified organic products and that is a key driver of market growth. The certifications not only cater to the domestic market but also enhance export opportunities for organic produce.

 

• Standardisation - The global comparison of certification standards is crucial for the harmonisation of organic trade. Collaboration between certification bodies worldwide and the recognition of certifications on the global stage contribute to establishing a consistent framework. Ultimately, certification not only ensures the integrity of organic products but also plays a vital role in shaping consumer perceptions and driving the growth of the organic market.

 

Challenges in the ecosystem

While the certifications stand as a hallmark for organic produce, it is important to also note that the certification ecosystem faces some challenges.

 

1. Certifications may be difficult for small scale producers: the rigorous upkeep of certifications poses challenges, particularly for small community farmers. For many, the adminis-trative burdens and costs involved make it a formidable endeavour.

 

2. Organic is no necessarily healthy: It’s crucial for consumers to recognise that the ‘organic’ label doesn’t automatically translate to ‘healthy.’ Despite the genuine efforts of most organic producers, the commercial value of the term often attracts individuals seeking financial gain rather than sustainable practices. Loopholes in certification may allow for the inclusion of additives that compromise the integrity of organic products. A certified organic label, unfortunately, doesn’t guarantee a completely organic or wholesome product. For instance, mayonnaise has oil and egg as the main ingredients. While both can be organic but mayonnaise is not necessarily healthy. Therefore, it is important for consumers to ensure mindful eating.

 

3. Certifications need additional support: In India, the certification process requires addi-tional support to align with the ethos of organic farming, urging a collective effort to refine the system. Organic certification, though a regulated process, faces scrutiny regarding its ability to reflect the overall health of the land. While it ensures the absence of synthetic fertilizers and pesticides, it doesn’t inherently convey improvements in land health. The debate over the ade-quacy of organic designations prompts contemplation on the broader vision of organic farming, transcending mere certifications to uphold the well-being of animals, plants, and humans.

 

Certifications are important because they foster trust among consumers, and ensure transparency, paving the way for a positive impact on the sector’s growth. However, the potential pitfalls and the need for continued improvement need to be addressed to ensure unparalleled growth of the sector in India.

India on Friday removed the minimum import price for yellow peas and allowed shipments duty-free until March 31, 2024, to boost the supply of pulses and keep prices under check.

 

'Import of Yellow Peas… is 'Free' subject to registration under the Import Monitoring system with immediate effect for the period up to March 31, 2024,' the Directorate-General of Foreign Trade (DGFT) said in a notification.

 

MIP condition and port restrictions shall also not apply ot such Yellow Peas imports till then.

 

India imported $0.14 million worth yellow peas in FY23- all from Russia.

 

Till now, Yellow Peas imports were restricted and the import required an annual quota, MIP of Rs 200 and above CIF per kilogram, and restriction to Kolkata Sea port. Import restrictions did not apply to government commitments under bilateral or regional agreements or Memoranda of Understanding.

 

'All Yellow Peas imports until March 31, 2024, require compulsory registration under the Import Monitoring System. Procedures for prior registration of Yellow Peas consignments will be separately notified,' DGFT said.

 

As per the notification, import consignments with customs out-of-charge issued after March 31, 2024, will not enjoy the 'Free' status. Starting April 1, 2024, the previous 'Restricted' import policy and associated conditions would be reinstated, it said.

Invest India, the National Investment Promotion and Facilitation Agency of the Government of India, and the current President of the World Association of Investment Promotion Agencies (WAIPA), under the aegis of the Department for Promotion of Industry and Internal Trade (DPIIT), is set to host the 27th World Investment Conference (WIC) from December 11-14, 2023, at the India International Convention & Expo Centre - Yashobhoomi, New Delhi. This year’s conference is themed "Empowering Investors: IPAs Pioneering Future Growth".

 

Union Minister of Commerce & Industry, Consumer Affairs, Food & Public Distribution, and Textiles, Shri Piyush Goyal on the main day of the conference on December 13, 2023, will deliver the keynote address on the Role of Trade and Investment in the Decade of Action. The Minister will also chair a closed-room roundtable of Private Equity.

 

Shri Goyal will also launch the Experience India Centre (EIC), showcasing the best of India’s offerings across services, technology, and products through a variety of technologies, including virtual reality, augmented reality, interactive touch screens, and projection mapping. EIC will provide delegates and participants from around the world an opportunity to engage and interact with some of India’s leading startups, and learn about India's rich products, services and tourism offerings, experience its vibrant culture through an immersive experience like Touch/Feel, Taste, Smell, Vision, Sound, and other self-exploratory means. The startups represent India’s emerging indigenous capabilities and its emerging global leadership. The wall Bharat Today and the Living Traditions will exhibit traditions like Madhubani, Katha, Warli, Mata ni pachedi etc.

 

WIC, an annual flagship event of WAIPA, serves as a platform for global investment promotion and innovation stakeholders. This year, the conference brings together Investment Promotion Agencies (IPAs), international organisations, academia, and the private sector, including startups, to discuss investment policies and trends, providing a unique opportunity for collaboration, trade, investments and knowledge sharing.

 

Spanning over four days, the WIC is set to be the largest WIC ever, with participation from more than 1000 attendees, over 50 IPAs and various multilateral agencies. Some of the marquee sessions include a Meeting of ‘IPAs of G20 Nations’ and IPAs of G20 Compendium on Sustainable FDI, Meeting of World Investment for Development Alliance (WIDA), a coalition of 13 multilateral organisations including UNCTAD, WEF, WBG, UNESCAP and WAIPA, and a roundtable on 'The India Opportunity: Investing in an Emerging Economy Poised for a Fast-Track Growth. Invest India may also release white papers on key topics such as E-Commerce, Electronics, Sustainable textiles and Responsible AI.

 

Apart from hosting international speakers, WIC will also host speakers such as Secretary, DPIIT, Shri Rajesh Kumar Singh; Secretary, Department of Commerce, Shri Sunil Barthwal; Director General, International Solar Alliance, Dr. Ajay Mathur; CEO, 3rdiTech, Ms. Vrinda Kapoor; Founder and CEO, Paytm, Shri Vijay Shekhar Sharma; and Founder and Executive Vice Chairman, Info Edge, Shri Sanjay Bikhchandani, among others. Representatives from MNCs like DP World, IKEA, Wipro, Equinor, and Arduino will also attend the Conference. Trade and investment ministers from Saudi Arabia, Armenia and Togo are also expected to address the conference. The Conference will also host 'The Startup-Investor Connect program', which is designed to offer Venture capital funds and International Startups from various sectors a platform to connect on the following one or multiple opportunities with the aim of facilitating funding and showcasing cutting-edge innovation.

 

Aligned with the overarching theme, the WIC will feature parallel sessions focusing on Agri-Food Processing, Energy/Infrastructure, Tourism, Automotive & Machinery, ICT/Technology, and Life Sciences. These sessions will provide a detailed exploration of investment opportunities and trends within each sector across participating countries and select Indian States. During this Conference, India will also showcase key initiatives like Make in India, PM Gati Shakti, and other steps taken towards ensuring ease of doing business.

 

The World Association of Investment Promotion Agencies was created in 1995 in Geneva, as a non-governmental organization. Its mission is to empower and support investment promotion agencies in the important work they do to develop their economies; to be a voice for IPAs internationally; and to serve as a bridge between the public and private sectors. The association has more than 120 member agencies representing more than 100 countries.