Meat analyst Simon Quilty has spent this month visiting abattoirs across India, and has seen first-hand the nation's buffalo trade ramping up.

 

'India's buffalo industry is back on the march in terms of both capacity and their ability,' he said.

 

While the cow might be sacred in India, the buffalo is not. 

 

Around 39 million of them are slaughtered each year, mostly after they've spent years being used for their milk. 

 

'In the last three to four years, we've seen a number of major operators here consolidate and become larger, and a lot of the smaller players pushed out,' Mr Quilty said.

 

'So we've seen meatworks upgraded and they're truly competitive in all markets around the world.'

 

The buffalo export trade is estimated to be worth around $5 billion annually.

 

Mr Quilty said the Middle East and North Africa (MENA) is a major destination for Indian buffalo meat, but the three biggest customers in August this year were Vietnam, Malaysia and Indonesia — all of which are traditional customers of Australian live cattle.

 

'It's estimated [Indian buffalo meat] exports to Egypt will drop 30 per cent next year due to challenges in the Egyptian economy, so that buffalo meat has to go elsewhere and I think more volumes will get pushed into Indonesia, which will displace Australian cattle.'

 

Mr Quilty said Australian live cattle and boxed beef were being pushed into the premium end of the Indonesian market, whereas the Indian buffalo meat, at one-third the price, was taking over the manufacturing sector.

 

He said Australian boxed beef exports to Indonesia was up an incredible 75 per cent year on year, which had actually taken some market share from Indian buffalo, and potentially Australia's live cattle trade.

 

Live cattle exports in 2024

Mr Quilty said the grey-trade from Vietnam into China had reopened, after being closed in 2019, meaning Vietnam seemed ready to absorb increased amounts of buffalo meat and Australian live cattle in 2024.

 

He believed the cattle trade to Indonesia would again be challenging next year, but felt by 2025-26 Indonesia's economy would be getting back on track and its rising middle class meant Australia could return to shipping over 600,000 head a year to that market.

 

Executive director of live shipping company Wellard, John Klepec, is not so optimistic.

 

He said over the last two years cattle producers from northern Australia had sent big numbers of stock into the domestic market, chasing record high prices, and he argued it had been to the detriment of the long-term viability of the live export trade.

 

'Effectively, the option for Indonesia was to starve or find something else, and they've found something else.

 

'Frozen Indian buffalo meat has seized the opportunity and we have to get those Indonesian customers back, and the only mechanism to get them back is price.'

 

He said if cattle producers were holding onto stock now until the price went back over $3 a kilogram, 'it was madness'.

 

'Send them, don't bury them, and be happy with the invoice,' he said.

 

Agriculture Minister Amran Sulaiman said that Indonesia may need to import up to 5 million tonnes of rice by 2024, citing the impacts of the El Niño climate phenomenon on rice production.

 

'This year, Indonesia decided to import 3.5 million tonnes of rice and there’s a possibility that we could reach 5 million in 2024,' Amran said on Monday during a meeting with the House of Representatives Commission IV, which oversees agriculture, environment, fisheries and food security issues.

 

Amran said the 5 million tonnes was the total import from 3.5 million tonnes to be imported this year and an additional 2 million tonnes to be imported in 2024.   

The 'World Food India 2023' event, organised by the Ministry of Food Processing Industry, concluded on November 5, at Bharat Mandapam, Pragati Maidan, New Delhi, graced by the esteemed presence of the President of India, Droupadi Murmu. The valedictory session encapsulated the event's resounding success, with the President acknowledging its pivotal role in showcasing India's vibrant culinary heritage and fostering robust partnerships among various industries. She emphasised the country's potential as a global culinary hub and underscored the importance of enhancing food distribution to combat global hunger.

 

The event was inaugurated by the Prime Minister Narendra Modi on November 3, disbursing Seed Capital Assistance for over one lakh SHG members. He emphasised the event's role in presenting India as the 'food basket of the world' and commemorating 2023 as the International Year of Millets. Applauding the technology and startup pavilion and food street, the Prime Minister emphasised their role in shaping the future economy. Recognising the food processing sector as a 'sunrise sector,' he highlighted its attraction of over Rs 50,000 crore in foreign direct investment over nine years. He underscored the impact of the PLI scheme and ongoing projects under the Agri-Infra Fund, emphasising investments of thousands of crores in processing infrastructure for fisheries and animal husbandry.

 

The Mega Food Event, held with the support of ten Ministries/Departments of Government of India, six commodity boards, and 25 states, attracted significant attention from international and domestic stakeholders. The event featured a remarkable turnout of 1208 exhibitors, 14 country pavilions, and notable participation from 715 international buyers, 218 domestic buyers, and 97 corporate leaders. Spanning an expansive area of 50,000 square metres across seven exhibition halls, the event provided a comprehensive platform for showcasing the latest advancements in the food processing industry. 14 country delegations, including seven Ministerial delegations participated in the event. The event's global appeal was further reinforced by the distinguished participation of The Netherlands as the Partner Country and Japan as the Focus Country.

 

A distinguished CEO Roundtable marked the inaugural day of World Food India 2023, co-chaired by Union Minister Pashupati Kumar Paras of the Ministry of Food Processing Industries and Union Minister Piyush Goyal of the Ministry of Commerce and Industry, Consumer Affairs, Food and Public Distribution, and Textiles. This significant gathering brought together CEOs representing over 70 leading companies in the food processing and allied sectors. Key deliberations during the Roundtable encompassed facilitation of business operations, investment strategies, sourcing interests, and a comprehensive examination of the existing gaps within the value chain of the Indian Food Processing Sector.

 

During the event, Paras participated in six G2G meetings. He held discussions with Ministers of Fiji, Mauritius, focusing on global partnerships in the food processing sector. He also engaged in talks with dignitaries from Greece and Lebanon, highlighting the event's commitment to international cooperation. Discussions with the Minister of Agro-Industry and Food Security from Mauritius and a Member of Parliament from Australia emphasised the event's emphasis on knowledge sharing and international ties.

 

The three-day event comprised 48 sessions, featuring Thematic, State, Allied Ministries, and Country & Organization sessions. Notably, 16 Thematic Sessions delved into crucial subjects such as Financial Empowerment, Quality Assurance, Innovations in Machinery and Technology, e-Commerce, and Logistics in the food processing sector. Moreover, 12 State-focused panel discussions and 11 specialised sessions by Allied ministries, including DPIIT and FSSAI, addressed pertinent industry challenges. The sessions were graced by Ministers from Gujarat, Kerala, and Andhra Pradesh.

 

The event also hosted knowledge sessions by the Netherlands and Japan, promoting knowledge exchange and best practices. Additionally, successful focused meetings with The Netherlands, the US-India Strategic Partnership Forum, Brazil, and the UAE highlighted growth opportunities in India's food processing sector.

 

Among the event's highlights was the Technology and Sustainability Pavilion, which spotlighted cutting-edge innovations in the food industry, signalling a shift toward more eco-friendly and resilient food production practices. The experiential Food Street, curated by Celebrity Chef Ranveer Brar, proved to be a delightful attraction, offering an immersive experience of India's rich culinary heritage and diverse regional cuisines. 200 chefs, including prominent names like chef Sarah Todd and chef Kunal Kapur, participated, conducting cookery demonstrations. The event also featured ICC23, an international culinary competition, celebrating excellence with categories like pre-millet dishes and live pasta cooking, along with masterclasses and an awards ceremony.

 

The event concluded with a substantial surge of investment interest, resulting in the signing of Memorandums of Understanding (MoUs) worth Rs 33,129 crore underscoring the event's significant impact on propelling India's food processing sector. Companies such as Amul, ITC, Mondelez, Kellogg’s, AB InBev, IB Group, Balaji Wafers, Ananda Dairy, Fertis, and Bikanerwala were among the signatories. More than 15200 B2B and B2G meetings conducted during the event fostered meaningful dialogues and partnerships, creating an environment conducive to knowledge exchange and industry growth.

India is considering a plan to allow surpluses in Special Rupee Vostro Accounts (SRVAs) to be invested in corporate bonds in order to give a push to international trade settlement in rupees. Under existing regulations, investment from SRVAs is restricted to government securities and treasury bills.

 

'We have received some recommendations after deliberations with all stakeholders, including banks and trade bodies,' an official said. 'They are being examined.' It has been suggested that allowing investment in corporate bonds through SRVAs will attract more such bilateral agreements, he said. A vostro account is held at a bank on behalf of another lender that's typically located in a foreign country.

 

Earlier this year, Russian officials said that Moscow had accumulated billions of rupees in Indian banks that couldn't be used. Industry estimates peg this amount at $7-8 billion. Until July 2, the RBI had approved 34 applications from different Russian banks for opening SRVAs in 14 Indian commercial lenders.

 

Around 90% of the transactions with Russia are through Sberbank India. An industry executive said annual trade through the SRVA route is pegged at around Rs 8,300 crore, of which 70% is exports with mostly medium and small enterprises using the facility. 'There is an apprehension among Russian companies on the rupee-ruble exchange rate, especially when the money would be remitted back to Russia after being invested in government securities,' said the executive cited above. 'They may find it attractive to invest in corporate bonds in that case.'

 

Another executive said a review with banks and financial institutions will be held later this month on the challenges of promoting bilateral payments through the SRVA mechanism. Earlier, the finance ministry had advised banks to form a working group to look into the reasons impeding the widespread adoption of the mechanism and suggest ways to make it popular. 'The government is not satisfied with the progress made, and we will be soon submitting our report,' said the executive.

The government plans to increase the procurement of millets threefold to 2 million tonnes in this financial year, from 0.73 in 2022-23, to replace some quantities of wheat and rice from the public distribution system (PDS), said a senior official.

 

The purchase at the minimum support price will give a boost to the cultivation of coarse grains which are eco-friendly, climate resistant and powerhouse of nutrients, the official said, adding that the strategy will play a significant role in crop diversification and enhancing nutrition in dietary patterns.

 

The government also plans to procure six minor millets, such as kodo, kudki and kangni, in several states at the minimum support price of another pricier millet, ragi, to encourage cultivation of the minor millets.

 

'Procurement targets have been set for every state and, depending on the actual procurement, distribution through PDS will also be carried out,' said the official, who did not wish to be identified.

 

For increasing the procurement and consumption of millets, the government has revised the distribution period of millets, incorporated inter-state transportation of millets, added provision of advanced subsidy and also revised guidelines for facilitating procurement of six minor millets.

 

Despite the government's focus on increasing cultivation and consumption of millets, its procurement target of 1.3 million tonnes in 2022-23 could not be met.

The FSSAI has issued a list of Referral Laboratories for the testing of fortificants in Fortified Rice (FR), Fortified Rice Kernel (FRK) and Vitamin-Mineral Premix for the Fortified Rice Kernel. These labs will act as an appellate lab in case the samples failed in the primarily notified labs.

 

According to the food authority, 'In case when the samples fail in the approved primary food testing laboratories notified for testing FR, FRK and the Vitamin-Mineral Premix for FRK, such samples shall only be sent to the Referral Food Laboratories.'

 

The food authority recognises referral food laboratories for the purposes of carrying out analysis of appeal samples. And a total of 9 referral labs were approved by the food authority for the testing of Iron, Vitamin B9 (folic acid), and Vitamin B12 in Fortified Rice, Fortified Rice Kernel and Vitamin-Mineral Premix for FRK.

 

The commerce ministry on November 15 will do a soft launch of the revamped electronic bank realisation certificate for self-certification by exporters to promote ease of doing business for traders.

An electronic Bank Realisation Certificate (eBRC) is an important document for exporters and is issued by a bank as a confirmation that the exporter has received the payment from a foreign buyer against the export of goods or services.

 

This certificate validates repatriation of export proceeds to the country and ensure compliance with provisions of foreign exchange rules.

eBRCs can be generated for outbound shipments of goods, services and deemed exports.

 

According to a trade notice of the Directorate General of Foreign Trade (DGFT), the upgraded system is based on electronic inward remittance messages to be transmitted directly by banks to the DGFT.

Based on the messages received, the exporters would self-certify their eBRCs.

'The enhanced eBRC system shall enable exporters to reduce transaction time and costs. It would also ease the burden on bankers by simplifying the reconciliation of IRMs with shipping bills, SOFTEX, invoices, etc. and promote ease of doing business in general,' the notice said.

Software traders have to fill the SOFTEX form after exports.

'A soft launch of the revamped eBRC system is proposed with effect from November 15. Starting from given date, each bank will set its cut-off date based on their readiness after completing user acceptance testing,' the DGFT said.

 

It added that the revamped eBRC system's user guide and Frequently Asked Questions (FAQs) will be available on the DGFT website.

The directorate will also organise exporter outreach programmes to demonstrate and raise awareness about the revamped system.

Commenting on the development, Chairman, CII national committee on EXIM, and Managing Director of Patton Group, Sanjay Budhia, said it is a progressive step.

'This will help exporters and banks in optimising their resources and cutting costs. Over the years, DGFT has almost completely automated its processes and now with this new step, exporters can fully focus on enhancing exports and achieve our targeted goal of USD 2 trillion of exports by 2030,' Budhia said.

Union Commerce Minister Piyush Goyal, who is on a visit to the United States from November 13 to 16, arrived in San Francisco Monday morning to attend the Indo-Pacific Economic Framework (IPEF) ministerial meeting.

Goyal has also been invited to attend the Asia-Pacific Economic Cooperation Summit in San Francisco.

 

Just shortly upon arrival, Goyal met with Singapore's Gan Kim Yong, Minister for Trade and Industry, on the sidelines of IPEF in San Francisco. The two sides looked to advance trade and commerce between the two nations.

During the meeting, the leaders emphasised ways of enhancing cooperation between India and Singapore in emerging and futuristic areas.

 

India and Singapore have a close bilateral relationship based on the convergence of economic and political interests, and the economic reforms in India since the early 1990s have created a strong basis for cooperation with Singapore, opening up possibilities for a significant presence in each other's economies.

The close ties between the two Asian countries have a history rooted in strong commercial, cultural and people-to-people links across a millennium. The relations are based on shared values and approaches, economic opportunities and convergence of interests on key issues. There are more than 20 regular bilateral mechanisms, dialogues and exercises. There is great convergence on a broad range of international issues and both are members of a number of forums, including the East Asia Summit, G20, Commonwealth, IORA (Indian Ocean Rim Association) and IONS (Indian Ocean Naval Symposium).

 

The Indian minister will also interact with two top US officials, including US Secretary of Commerce Gina Raimando and US Trade Representative (USTR) Katherine Tai, to fortify the partnership between the two nations and strengthen trade and economic ties. The commerce minister will also interact with ministers from other IPEF partner countries on the sidelines of the IPEF ministerial.

As per a release from his Ministry of Commerce and Industry on Friday, Goyal will also interact with eminent businesspeople, prominent academics, US officials, and industry leaders during the visit to further strengthen the economic and commercial relations partnership between the two nations.

 

India has been invited to the 30th APEC Economic Leaders' Meeting 2023 as a 'Guest Economy'. These meetings will focus on addressing trade barriers, promoting investments, and fostering greater cooperation in areas such as technology and innovation.

One of the key focuses of the visit will be the joint event, co-chaired with US Commerce Secretary, Gina Raimondo on the 'India-USA Innovation Handshake Initiative', with the aim to lift up and connect the two sides' dynamic startup ecosystems, address specific regulatory hurdles to cooperation, and promote further innovation and job growth, particularly in emerging technologies.

The Commerce and Industry Minister will also participate in the investors' roundtable along with one-to-one meetings with CEOs. He will also interact with various stakeholders, such as students, entrepreneurs, venture capitalists and the Indian diaspora.

 

Minister Goyal is expected to interact with globally renowned technology, entrepreneurship, and academic communities in the Bay Area, specifically in the Silicon Valley, to undertake focused discussions with American companies looking to invest or expand in India across sectors: electronics (including semiconductors), technology, and FinTech.

APEC in San Francisco will see some of the most influential world leaders and business executives convene, discuss vital issues, and collectively shape the trajectory of a region that holds immense importance for global prosperity, stability, and sustainability. The summit programme will highlight the potential of collaboration and fresh thinking to build the future through a focus on Sustainability, Inclusion, Resilience, and Innovation.

 

This year's summit will also bring together 20+ leading CEO's representing companies such as Microsoft Pfizer, Uber, Citibank, Fedex, Exxon Mobil Corp to name a few, many of which, have deep economic interests in the Asia Pacific region and China in particular.

At this summit, Goyal will have a brief informal interaction with President Joe Biden and the former will also be a part of the APEC group photo. Biden will also welcome other APEC leaders, including from Canada's PM Trudeau and China's President Xi Jinping.

While in the Bay Area of San Francisco, Goyal will also interact with eminent businesspeople and industry leaders.

 

The IPEF, launched jointly by the US and other partner countries of the Indo-Pacific region, seeks to strengthen economic engagement among partner countries with the goal of advancing growth, peace, and prosperity in the region.

The meeting would focus on strengthening economic cooperation and enhancing resilience, sustainability, inclusiveness, economic growth, fairness, and competitiveness in the Indo-Pacific region.

India is committed to a free, open, and inclusive Indo-Pacific region and would work towards deepening economic cooperation among partners for the growth and prosperity of the region. The framework is inclusive and allows flexibility to partner countries to associate with pillars based on their respective priorities, the Ministry of Commerce and Industry said in a statement.

 

During the visit, the minister would interact with the CEOs of multinationals, the Indian diaspora, the startup community, including venture capitalists, and academia to propel existing trade and investment relations between the Indian and US business communities. The visit would focus on emphasising the attractiveness of India as the most preferred investment destination.

Goyal will hold discussions on the need and potential for closer industrial collaborations, further expand partnerships, and establish trade and investment linkages across priority areas.

External Affairs Minister S Jaishankar, who is on a five-day official visit to the United Kingdom to give 'new impetus to the friendly ties', Monday said India and Britain are currently focusing on a free trade agreement (FTA) and hoped that both the countries would find a 'landing point' workable for both of them.

 

The Indian foreign minister said the Agenda 2030 put greater emphasis on connectivity, trade, and working together when it comes to defence and security, health and all climate change.

 

'We are focusing on what is officially called an enhanced trade partnership. In common sense, it’s called FTA (a free trade agreement) and that is today very much the focus of what the Indian and British systems are negotiating and where we hope that we will find a landing point which will work for both of us,' Jaishankar said.

 

Both countries have been negotiating a free trade agreement (FTA) since January 2022 with a target to significantly enhance the estimated GBP 36-billion bilateral trading partnership.

 

The FTA talks have undergone 13 rounds of negotiations, and the officials are hopeful of clinching a deal ahead of general elections in both countries scheduled for 2024.

 

Jaishankar also talked about his meetings with newly-appointed Foreign Secretary David Cameron, Defence Secretary Grant Shapps and Home Secretary James Cleverly.

 

He said the foreign Secretary on the first day of his job met him and it was extremely satisfying for him the 'commitment and support for the relationship'.

 

'We spent a lot of time talking about how to take it forward. I also, of course, met the Home Secretary, recently the foreign secretary and he has been a pillar of strength for the relationship in his previous job. In his current job, we continue to count on him. Again, taking this relationship to a higher level,' Jaishankar added.

The Minister of Food Processing Industries, Shri Pashupati Kumar Paras held a bilateral meeting with the Governor of the state of Mato Grosso of Brazil, Mauro Mendes Ferreira here today. The meeting was attended by Additional Secretary, Shri Minhaj Alam and senior officials from the Ministry. From the Brazil side, Governor was accompanied by H.E. Kenneth Nóbrega, Ambassador of Brazil to India and other senior government officials of Brazil.

 

Both the sides discussed about the historic relationship both the countries enjoy which goes back to over 70 years. The recent high-level interactions and visits are testimony to both side’s commitment to strengthening bilateral relations, and this momentum needs to be continued, sustained, and further strengthened. Shri Pashupati Kumar Paras highlighted that the Prime Ministers of our respective nations had very productive meetings on the sidelines of G7 Summit as well as G20 Summit.

 

Governor Mauro Mendes Ferreira emphasized that India is a key strategic partner for Brazil and Brazil commends as well as congratulates the visionary steps taken by the government to foster development in India. Governor Mauro Mendes Ferreira also applauded the recent success of Indian space missions and the strong performance of India’s food processing, pharma, and energy sectors.

 

Shri Paras inquired about the status of agri food production in Brazil in accordance with the Agro-climatic in general and in specific to the state of Mato Grosso. Brazil officials expressed their interest in expanding their export of Soybean, Corn, Cotton, poultry meat etc. to India in the near future.

 

Both sides acknowledged the strategic importance of each other to foster food security. India as one of the largest producer of Agri Food and Brazil as one the largest exporter of food can work towards ensuring food security for the world. Brazilian side highlighted that the bi-lateral trade between the two countries has expanded by 32% to US$15.2 billion in 2022.

 

The two sides discussed synergies and exploring possibilities in further collaboration and co-ordination in the food processing sector particularly in terms of exchange of goods and human resource. Both sides agreed to continue to work in partnership with each other to facilitate even greater exchange of goods and ideas.