India's soymeal exports are likely to rise in coming months as concerns over soybean output in top producer Brazil lifts global prices to two-month highs, prompting buyers to turn to the south Asian country, industry officials said.

 

The revival in the exports of the animal feed could boost soybean crushing in India and the availability of soyoil, which could reduce imports of soyoil and palm oil by the world's biggest buyer in coming months.

 

Indian soymeal has become attractive because of the rally in U.S. soymeal prices, Hemant Jain, an exporter in Indore in the central state of Madhya Pradesh told Reuters.

 

'Until last month only Bangladesh, Iran and Nepal were making purchases. Now even Vietnam and other Asian countries have started making inquiries.'

US soymeal futures jumped 20% in five weeks as erratic weather has caused problems in the world's No. 1 exporter Brazil.

Indian traders have contracted to export around 300,000 metric tons of soymeal for shipments in November and December, mostly to Bangladesh, Iran, Nepal and Vietnam, traders said.

Anticipating export demand, soybean and soymeal prices in India surged in the last week, making exports less competitive, said Manoj Agrawal, managing director of Maharashtra Oil Extractions.

'There is an opportunity to export a good amount of soymeal in the next three months, but to make that happen, Indian prices need to remain on par with global prices,' Agrawal said.

 

While soymeal prices have improved, soyoil prices are under pressure because of record inventories of imported soyoil, effectively reducing soybean crushing margins, said a New-Delhi based dealer with a global trade house.

'Soybean crushing is on the rise, and there's a good demand for exports and from the local poultry industry. This will beef up our domestic soyoil supplies and put a cap on imports,' he said.

From a local brick-tea to textiles made from a Himalayan plant, over 15 products from Uttarakhand have been given the coveted GI tag by the Geographical Indications Registry.

 

Uttarakhand’s Berinag tea, highly sought-after by London tea houses and tea blenders, is made from the leaves of a plant that grows wild in the Himalayas, which are then compressed into a solid mass. Bichhu buti fabrics, made from Himalayan nettle fibres, was also on the list of products that bagged the GI tag. As the plant’s fibres are hollow, they have the unique ability to accumulate air inside, thus creating a natural insulation and making an ideal clothing material for both winters and summers.

 

The Uttarakhand mandua, a finger millet grown in Garhwal and Kumaon that is part of the staple diet in many parts of the State, was among the products granted GI tags. Similarly, jhangora, a home grown millet commonly cultivated in the rain-fed areas of the Himalayas in Uttarakhand, got a tag. Gahat is one of the most important pulses growing in the dry regions of the State, whose medicinal uses have been known to Ayurveda and traditional physicians for centuries. Uttarakhand lal chawal, a red rice organically grown in the Purola region, was also on the list.

 

Other products to receive GI tags included the Uttarakhand kala bhat (black soybean); malta fruit; chaulai (ramdana), a grain used on fasting days; buransh juice obtained from the red flowers of the Rhododendron arboreum; pahari toor dal; Uttarakhand likhai or wood carvings, Nainital mombatti (candles), the rangwali pichhoda of Kumaon, Ramnagar Nainital litchis, Ramgarh Nainital peaches, Chamoli wooden Ramman masks, and Almora Lakhori mirchis, a chilli variant.

India and Russia are planning a mega business meet on December 19 in Moscow amid unprecedented surge in trade volume and growing interests in investments.

 

The meet will focus on several tracks -- ‘Financial Cooperation’, ‘Cooperation in Pharmaceuticals and Healthcare’, ‘Support for Innovation and Entrepreneurship’, ‘Trade and Logistics’, ‘Tourism and Cultural Relations’, and ‘Digital Transformation and E-commerce’, ET has learnt.

 

In addition, forum will discuss ways to strengthen and develop business cooperation in key sectors, including energy, technology, manufacturing, and agriculture.

 

The dialogue will be attended by businessmen and the heads of federal ministries, agencies, and the regions of the Russian Federation, development institutions, and public organizations.

 

'Relations between Russia and India have deep historical roots and are based on mutual trust and respect. This is evidenced by the multi-format strategic partnership between the two countries. Today, it is crucial to emphasize the important role of business, which influences the stability and expansion of economic cooperation and bilateral trade. We see that the Russian and Indian business communities have mutual interest in each other, and we are observing an increase in the number of joint projects. I am confident that the platform of a business forum will once again become a place for the birth and implementation of new ideas,' Advisor to the Russian President Anton Kobyakov said.

 

Around 600 participants and 20–25 speakers are expected to attend the forum.

The Export-Import (Exim) Bank of India has forecast India’s total merchandise exports to touch $111.2 billion, a year-on-year growth of 6.3 per cent, during the October-December quarter (Q3) of FY2024.

 

Non-oil exports are forecast to amount to $88.1 billion, growing 7.7 per cent year-on-year, Exim Bank said.

 

The positive growth rates are expected after the negative growth seen during the first two quarters of the year. 'Positive growth in India’s exports could be as a result of improvement in India’s GDP growth outlook and expected global easing of monetary tightening spurring global demand,' it said.

 

'The outlook is, however, subject to risks of uncertain prospects for advanced economies, geopolitical shocks, and deepening geoeconomic fragmentation, among other factors,' Exim Bank said.

 

India’s total merchandise exports have consistently remained above $100 billion for nine consecutive quarters since Q2 FY2022, reflecting resilience amidst a challenging global economic situation, plagued by supply chain disruptions and geo-political tensions.

 

With these forecasts, India’s total merchandise exports for the first nine months of FY2024 are expected to amount to $323 billion, while non-oil exports could amount to $258 billion during the same period. Positive growth in exports is expected to continue in the last quarter of the financial year, it said.

 

As part of its continued research initiatives, Exim Bank has developed an in-house model to generate an Export Leading Index (ELI) for India to track and forecast the movement in India’s exports on a quarterly basis. The ELI gauges the outlook for the country’s exports and is essentially developed as a leading indicator to forecast growth in total merchandise and non-oil exports of the country, on a quarterly basis, based on several external and domestic factors that could impact exports of the country.

The US Department of Agriculture on Nov. 7 projected area planted to soybeans to expand in 2024, but wheat and corn planting areas were forecast to decline. The forecasts were contained in early-release tables from the USDA Agricultural Projections to 2033 report, which will be issued in February 2024.

 

The USDA forecast area planted to all wheat for harvest in 2024 at 48 million acres, down 1.2 million acres from 49.6 million acres in 2023. The 2024 forecast compared with 46.4 million acres as the recent five-year average planted area. The USDA’s first all-wheat planted area estimate was 77.44 million acres in 1919. Planted area has been smaller than 50 million acres since 2016. The record-high all-wheat planted area was 88.3 million acres in 1981. The record-low all-wheat planted area was 44.45 million acres in 2020.

 

The USDA projected area planted to corn in 2024 at 91 million acres, down 3.9 million acres, or 4%, from 94.9 million acres in 2023. The corn area forecast would be the smallest since 88.6 million acres in 2022 and compared with the recent high planted area of 97.3 million acres in 2012 and the recent five-year average planted area at 91.4 million acres. The USDA began to estimate corn planted area in 1926. The record high area was 113 million acres in 1932. The record low area of 60.2 million acres was planted in 1983.

 

The USDA forecast soybean planted area in 2024 at 87 million acres, up 3.4 million acres, or 4%, from 83.6 million acres in 2023. The projection for 2024 compared with the recent five-year average planted area at 83.5 million acres. The record-high soybean area at 90.2 million acres was planted in 2017.

 

The USDA projected area planted to rice in 2024 at 2.8 million acres, down 97,000 acres, or 3%, from 2.9 million acres in 2023. The 2024 forecast compared with 2.6 million acres as the recent five-year average.

 

The USDA projected the area planted to oats for harvest in 2024 at 2.6 million acres, the same as in 2023, 2022 and 2021. That compared with the recent high acreage of 3.1 million acres in 2015 and compared with the recent five-year average at 2.7 million acres.

The Uttar Pradesh Interstate Waterways Bill-2023 was approved by the state cabinet on Thursday, paving the way for the formation of a body that will regulate and monitor tourism and transport through the state's rivers.

 

Chief Minister Yogi Adityanath announced that the bill will now be sent to the Assembly, after which it will become an act.

 

Sources indicated that it was likely to be tabled in the upcoming Winter Session, which is due to start on November 28.

 

'Ganga, Yamuna and other rivers in UP account for 11 national waterways. It has been decided to constitute this authority for promotion and regulation of water transport and tourism,' said an official.

 

The CM will appoint a head of the authority which could either be a specialist in waterways, shipping, maritime etc or the minister of transport. The vice chairperson, to be appointed by the state government, will also be an expert. 

 

Additional chief secretaries and principal secretaries of departments like finance, public works, tourism, transport, culture, forest and environment, and irrigation will be its members.

 

 

'It was said about UP that it is a land locked state. Those countries which have waterways have progressed. Even within the country, those states were progressing which had waterways, as it provided export facilities. We are all grateful to Prime Minister Narendra Modi who started the country's first inland waterway between Varanasi and Haldia. The Inland Waterway Authority will help in promoting water transport in UP. It will also promote water sports, increase tourism facilities and help in developing UP as an export hub,' the CM said. He added that Ayodhya was very important from this point of view of a waterway because, as it is reported that 2,000 years ago princess of Ayodhya had gone to South Korea by the water route to marry the prince.

 

'Similar facilities can be developed in all the rivers like Ganga, Yamuna, Saryu, Rapti and Gomti. Therefore, this authority will work together with the Government of India and facilities will be developed to supply UP's traditional products to the world market,' Yogi said.

Minister of State for Agriculture and Farmers’ Welfare Shobha Karandlaje interacted with the Brazilian delegation led by Minister of Agriculture, Livestock and Food Supply Mr Carlos Favaro.

 

Shobha Karandlaje showed gratitude for supporting the Indian Presidency during the G20 Agriculture Working Group Meetings and expressed regret for the Minister’s absence and inability to attend the G20 Agriculture Minister’s Meeting at Hyderabad. She expressed happiness that the visit would further strengthen India-Brazil’s rapidly growing cooperation in the agriculture sector. She said that both countries have a flourishing bilateral agriculture trade, and further cooperation can be strengthened in food processing, agro-industry, and agricultural research and development.

 

The Indian Minister further said that the demand for avocados is growing in India, which provides an opportunity for India to import avocados from Brazil. She assured that India will extend its full support to Brazil for a successful G20 Presidency. She also expressed happiness that Brazil is establishing a task force, the Global Alliance against Hunger and Poverty, which aligns with the India Presidency’s Deccan High-Level Principles on Food Security and Nutrition align with this task force.

 

Mr Carlos Favaro thanked India for a friendly reception and conveyed warm greetings from President Lula. He underscored Brazil’s strong commitment to enhancing relationships within the BRICS framework with the Global South and the Middle East. Brazil prioritizes environmental protection while emphasizing that environmental concerns should not hinder international trade. Brazil articulated its intent to increase food production and expand its agricultural area without resorting to deforestation or harming the environment.

 

Mr Carlos Favaro emphasized that Brazil and India face similar challenges in the agricultural sector, and hence, both countries can find standard solutions to mitigate these challenges. The fight against hunger is a paramount focus for Brazil, and they expressed a desire to collaborate with India through technology transfer, knowledge sharing, and cooperative efforts with India to fight hunger.

 

Brazil anticipates receiving India’s specific interests and demands, which can be addressed at the institutional level by both countries. The promotion of bilateral trade was highlighted with Brazil’s willingness to open its market to various agricultural products and expedite Sanitary and Phytosanitary (SPS) related negotiations to facilitate trade. Brazil’s delegation extended an official invitation to India for the forthcoming 2024 G20 presidency.

 

Other members of the Brazilian delegation shared insights into their agricultural best practices, including the use of drip irrigation in the horticulture sector, underscoring the importance of collaboration in fruit production.

 

The president of Apex Brazil shared that the existing trade relations between India and Brazil need to be commensurate to the potential of both nations. Apex Brazil is undertaking a mapping exercise of investment opportunities in both countries and encouraged the Ministry of Agriculture and Farmers’ Welfare to provide their insights.

 

Concluding the session, the Secretary of the Department of Agriculture and Farmers Welfare mentioned the possibility of forming a joint working group between the Department of Agriculture and Farmers Welfare and the Department of Animal Husbandry and Dairying to facilitate more efficient future discussions with Brazil. They also outlined plans to compile a list of collaboration points, which Brazil would also do in parallel. India will appoint a senior officer to lead the development of the relationship, with the creation of agenda points for the effective implementation and monitoring of actionable items. They aim to identify common issues and areas for collaboration promptly.

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.

In a significant boost to the prospects of fresh fruit exports, the Agricultural and Processed Food Products Export Development Authority (APEDA), operating under the Ministry of Commerce and Industry, has facilitated the export of the first trial shipment of fresh bananas to the Netherlands, by InI Farms, via a sea route.

 

The first export consignment of one container of bananas to the Netherlands was flagged off yesterday (9th November, 2023) by APEDA Chairman Shri Abhishek Dev from Baramati, Maharashtra.

 

For the trial shipment of bananas, APEDA has enlisted the support of ICAR-Central Institute for Subtropical Horticulture (CISH), Lucknow for technical assistance while InI Farms has partnered with Del Monte for marketing and distribution in Europe, and Maersk for logistics.

 

The trial shipment of bananas to Europe was carried out by the APEDA-registered 'InI Farms,' a top exporter of fruits and vegetables from India and their produce being exported to over 35 countries worldwide. Over the past two years, the firm has made extensive efforts to enhance the quality and shelf life of bananas to meet the strict standards of the European market. As part of the Agrostar group InI Farms has also established a value chain for bananas by working directly with farmers.

 

During the event, the APEDA Chairman mentioned that the beginning of banana exports to the Netherlands would lead to higher prices and increased income for farmers. He also highlighted that this trial shipment would open up the significant export potential of the European market for Indian bananas.

 

The long-distance market and high costs were obstacles to starting commercial operations, and the export of the first trial shipment of bananas will help build capacities among Indian exporters and European Union (EU) importers by ensuring the export of quality fruits.

 

Despite being the world's largest banana producer, India's export share is currently just one percent in the global market, even though the country accounts for 26.45 percent of the world's banana production at 35.36 Million Metric Ton. In the fiscal year 2022-23, India exported bananas worth USD 176 million, equivalent to 0.36 MMT.

 

With the first trial shipment to the European market, it is estimated that India may be able to export bananas worth more than USD one billion in the next five years. This could also lead to an increase in the income of more than 25,000 farmers and create rural livelihoods directly for over 10,000 people in the supply chain and indirectly provide employment for over 50,000 people on farms.

 

The major export destinations for Indian bananas include Iran, Iraq, UAE, Oman, Uzbekistan, Saudi Arabia, Nepal, Qatar, Kuwait, Bahrain, Afghanistan, and the Maldives. Additionally, there are abundant export opportunities in countries such as the USA, Russia, Japan, Germany, China, the Netherlands, the UK, and France.

 

As India has been playing a larger role in banana trade with the Middle East for the last 15 years, it is estimated that exports will exceed USD 303 million in the fiscal year 2024.

 

Banana is a major horticultural crop grown in the states of Andhra Pradesh, Tamil Nadu, Maharashtra, Kerala, Maharashtra, Gujarat, Telangana, and Uttar Pradesh. Andhra Pradesh is the largest banana-producing state, followed by Maharashtra, Karnataka, Tamil Nadu, and Uttar Pradesh. These five states collectively contribute around 67 percent to India's banana production in the fiscal year 2022-23.

 

Other states that also produce bananas include Gujarat, Karnataka, Madhya Pradesh, Bihar, West Bengal, Assam, Chhattisgarh, Odisha, Mizoram, and Tripura.

 

The increase in the export of agricultural and processed food products is a result of various initiatives undertaken by APEDA to promote agricultural and processed food product exports, such as organizing B2B exhibitions in different countries and exploring new potential markets through product-specific and general marketing campaigns with the active involvement of Indian Embassies with a special focus on natural, organic, and Geographical Indication (GI) tagged agro-products.

 

APEDA is making continuous efforts in promoting exports of fresh fruits and vegetables and has initiated to develop sea protocols for other fruits which have significant export potential.

Union Minister of Commerce and Industry, Consumer Affairs, Food & Public Distribution and Textiles, Shri Piyush Goyal will visit San Francisco, United States of America, from 13th to 16th November 2023 to attend the various official engagements of Indo-Pacific Economic Framework (IPEF) and the Asia-Pacific Economic Cooperation (APEC). He will also interact with eminent business persons, prominent academics, US officials and industry leaders during the visit to further strengthen economic and commercial relations partnership between the two nations. 

 

The Commerce and Industry Minister will participate in the third in-person IPEF Ministerial meeting from November 13-14, 2023, which is likely to see significant updates on the progress of negotiations. The Minister will also hold bilateral meetings with the US Secretary of Commerce, USTR and Ministers from other IPEF partner countries on the sidelines of the IPEF Ministerial. 

 

The Minister would be representing India at the Partnership for Global Infrastructure and Investment (PGII) - IPEF Investor Forum meeting on November 16, 2023. The Minister would also be representing India at the APEC Economic Leaders Engagements from November 15-16, 2023. India has been invited to the 30th APEC Economic Leaders’ Meeting 2023 as a Guest Economy. 

 

During the visit, the Commerce and Industry Minister will have bilateral meetings with US Commerce Secretary, Ms. Gina Raimondo, USTR, Ms. Katherine Tai and representatives from various sectors and industries. 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 focus of the visit will be the joint event, co-chaired with US Commerce Secretary, Ms. Gina Raimondo on '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 Indian diaspora etc. Shri 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 Semiconductor), Technology, FinTech etc.

 

Prime Minister Shri Narendra Modi attended the IPEF launch event along with President of the United States, Mr. Joe Biden; Prime Minister of Japan, Mr. Kishida Fumio; and other partner countries of the Indo-Pacific region on May 23, 2022 at Tokyo. In the first-ever in-person Ministerial meeting in September 2022, Pillar-wise Ministerial statements were issued outlining the broad contours of text-based negotiations. In December 2022, negotiations on all the four Pillar Agreements were launched and in May 2023, negotiations on the Pillar-II Agreement were substantially concluded. 

 

The IPEF seeks to strengthen economic engagement among partner countries with the goal of advancing growth, peace and prosperity in the region. The framework is structured around four pillars relating to Trade (Pillar I); Supply Chains (Pillar II); Clean Economy (Pillar III); and Fair Economy (Pillar IV).  

 

India is committed to a free, open and inclusive Indo Pacific Region and would work towards deepening economic cooperation among partners for 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.

 

Both India and USA are natural partners and have trade complementarities, long standing strategic and economic relationship, people to people contact, and both are vibrant democracies too. The two countries are also collaborating under other frameworks such as QUAD and I2U2 (India-Israel/ UAE-USA). Regular exchanges at the leadership-level have been an integral element of the expanding bilateral engagement. The visit reflects the determination to forge strong and mutually beneficial trade and investment relationships that will not only benefit the economies of both India and the USA but also contribute to the overall prosperity and welfare of their respective citizens.