The Food Ministry on Tuesday issued export permits of 13,526 tonnes to two firms – Sahkarmaharshi Bhausaheb Thorat Sahakari Sakhar Karkhana and HRMM Agro Overseas – over and above 10 lakh tonnes (lt) issued on May 5 after finding these companies are eligible for the quota since their applications were received by email within the cut-off time.

 

In separate notifications, the Ministry has issued export release order (ERO) of 10,133 tonnes to Sahkarmaharshi Bhausaheb Thorat Sahakari Sakhar Karkhana and 3,393 tonnes to HRMM Agro Overseas.

 

Besides, the government has also permitted export of 5,000 tonnes of sugar to Gianna Agro under government-to-government programme for Sri Lanka and 520 tonnes to Hari & Co International for the Maldives.

 

The Directorate General of Foreign Trade, in July 2021, had allowed export of specified quantities of various commodities including sugar under bilateral agreement between India and Maldives for three years until 2023-24. The current restriction on sugar export, therefore, does not apply to shipments for Maldives.

 

Similarly, as India has extended $1 billion credit facility to Sri Lanka for import of various and under that facility contract for export of sugar between Gianna Agro (of India) and RA Cereals (importer from Sri Lanka) has been registered with High Commission of India in Colombo.

 

Single window system

Meanwhile, Food Ministry has convened a meeting with industry bodies – All India Sugar Trade Association (AISTA), Indian Sugar Mills Association (ISMA), National Federation of Cooperative Sugar Factories (NFCSF) and Indian Sugar Exim Corporation (ISEC) — on Wednesday to discuss issues related to exports.

 

A total of 62 exporters and sugar mills had submitted 326 applications (separately for different quantity) on the National Single Window System seeking permits worth 23 lt. After perusing these applications, the Food Ministry approved 1 mt and asked them to export the sugar within 90 days. The allottees of export release order (RO) quota will have to submit a progress report to the Directorate of Sugar on a weekly basis.

 

The government on May 24 announced that sugar (raw, refined and white sugar) exports from June 1 would be allowed only through permits and fixed a maximum quantity of 100 lt for this season (October-September). The order, issued by the Directorate General of Foreign Trade (DGFT) will be valid until October 31.

Jordan's state grain buyer purchased about 60,000 tonnes of wheat to be sourced from optional origins in an international tender which closed on Tuesday, European traders said.

 

The wheat was bought from trading firm Ameropa at $489.75 a tonne, cost and freight (c&f) included, for shipment in the first half of September, they said.

 

One other firm, CHS, participated in the tender, offering to sell at $493.95 a tonne c&f, traders added.

 

Jordan's state buyer had been seeking to purchase 120,000 tonnes in the tender.

In a move aimed at realizing Hon’ble Prime Minister Narendra Modi’s vision of ‘Vocal for Local’ with an emphasis on ‘Aatmanirbhar Bharat’, Agricultural and Processed Food Products Export Development Authority (APEDA) in collaboration with Union Territory of Ladakh today organized an International Buyer Seller Meet (IBSM). 

 

IBSM aimed at boosting exprots of Apricots and other agri products from Ladakh.

 

Eighteen entrepreneurs from UTs of Ladakh and Jammu and Kashmir displayed a range of Apricots and other Agri Products. Twenty buyers from India, USA, Bangladesh, Oman, Dubai participated in this event. 

 

More than 30 producers of Ladakh Apricots and other agro products and stakeholders from UTs of Ladakh and Jammu and Kashmir participated to interact with the importers and exporters providing platform to growers, entrepreneurs from UTs of Ladakh and Jammu and Kashmir to display their products and facilitate B2B interactions. 

 

Leh Ladakh is endowed with conducive climatic conditions for the production of a large number of Apricots and other Agri Products.  The farmers and entrepreneurs of UTs of Ladakh and Jammu and Kashmir need exposure to the international trade opportunities with specific reference to temperate fruits such as Apricots, Walnuts, Apples, etc.

 

IBSM provided an opportunity to the producers and processors of UT of Ladakh along and Jammu and Kashmir to show case their products to promote the exports as well as their wholesale and retail sale.

Shri Radha Krishna Mathur, Hon’ble Lieutenant Governor, UT of Ladakh inaugurated the IBSM in the august presence of Shri Jamyang Tsering Namgyal, Hon’ble Member of Parliament, UT of Ladakh, Dr. M. Angamuthu, Chairman APEDA, Shri Ravinder Kumar, Secretary, Agriculture, UT of Ladakh, Shri Saugat Biswas, Secretary, Industry and Commerce, UT of Ladakh, Dr. Tarun Bajaj, Director, APEDA, Shri Moses Kunzang, Director, Industry and Commerce, UT of Ladakhand officials from APEDA and Union Territory of Ladakh. 

 

APEDA, under its initiative to boost exports from Himalayan Region is encouraging States and UTs to harness their potential of agricultural produce exports. A platform will be created for the buyers to get the products directly from the producer group and the processors.

 

This event is aimed to link the producers and processors of UTs of Ladakh and Jammu and Kashmir and buyers from other parts of the country as well as abroad which in turn will broaden the base of the export basket from the region, including UTs of Ladakh and Jammu and Kashmir to increase the employment opportunities thereby improving the livelihood of the people.

 

APEDA organizes International Trade Fairs for participation of exporters and provides a platform to the exporters to market their food products in the global marketplace. APEDA was also given priority and was provided to participation from UTs of Ladakh and Jammu and Kashmir in the national and international events organized by it such as AAHAR, Organic World Congress, BioFach India etc. to promote agro product exports from these regions. 

 

As a result the exporters and entrepreneurs from UTs of Ladakh and Jammu and Kashmir have started participation in national and international events during the recent past.

 

APEDA offices are located within the premises of Directorate of Agriculture in Jammu and Srinagar Divisions, UT of Jammu and Kashmir and within Directorate of Industries and Commerce in Leh in UT of Ladakh recruiting Business Development Managers from the respective regions ensuring smooth facilitation to the stakeholders on daily basis.

 

Also carrying out hand holding of officials of Directorate of Agriculture, Directorate of Horticulture, Directorate of Horticulture Planning, JKHPMC, FPOs, Cooperatives, exporters and start up entrepreneurs linking the stakeholders on aspects related to international food trade during 2021.

 

Organizing sensitization of officials of Seed Certification, Directorate of Agriculture, Horticulture, Animal Husbandry, Sher-e-Kashmir University of Agricultural Sciences and Technology or their convergence into Organic Certification Agency under National Program for Organic Production (NPOP) and ISO-17065 during 2021.

 

Despite pandemic situation and travel restrictions, Geographical Indication (GI) certified products such as Kashmir Saffron from Srinagar to Lulu FMCG Dubai and other Middle Eastern markets was exported during 2021. The focus was to ensur that GI products from UT of Jammu and Kashmir are available in the international market and at the same time the producers also realize remunerative prices from the global market.

 

APEDA has also signed Memorandum of Understanding (MoU) with Sher-e-Kashmir University of Agricultural Sciences and Technology on mutual areas of cooperation such as technical support and promotional activities for enhancing productivity and promotion of potential products from the region. 

 

Shipment of Mishri variety Cherries was carried out from UT of Jammu and Kashmir to Dubai for the first time creating international market for Indian Cherries during 2021. The shipment was handled by local entrepreneurs from UT of Jammu and Kashmir with the established exporter from Mumbai to their counterpart in Dubai. 

 

Shipment of UT of Jammu and Kashmir fragrance rice Mushkbudji and Acacia honey have been exported in 2021 by the startups/new entrepreneurs to Lulu Group Dubai, Oman and other Middle Eastern markets. Shipment of Apples from UT of Jammu and Kashmir were carried out during 2021 by the startup/new entrepreneur to Oman, Qatar, Dubai, and other Middle Eastern markets. 

 

Stakeholders from UTs of Jammu and Kashmir and Ladakh are regularly participating in virtual and physical domestic and international buyer seller meets organized by APEDA and other departments to generate business enquiries. 

 

Shipment of Ladakh Apricots was carried out from Leh to Dubai for the first time followed by commercial shipments of Ladakh Halman Apricot creating an international market for Indian Apricots during the month of August-September 2021. 

 

Taking into consideration, the taste, texture and soothing aroma of Ladakh Apricots repeat orders were received from overseas market for the produce on a regular basis. The shipment was handled by local entrepreneurs from Kargil with the established exporter from Mumbai to their counterpart in Dubai. 

 

APEDA also facilitated exports of Solar dried Apricots from Kargil to Singapore by Startup company for establishing export chain to enter into international market from UT of Ladakh products. 

 

APEDA has been regularly mobilizing startups and entrepreneurs from UTs of Ladakh and Jammu and Kashmir to the national and international physical and virtual events for promotion of products from these regions to international market. 

 

As a follow up of earlier visit of Chairman, APEDA to UTs of Ladakh and Jammu and Kashmir as well as meeting of Chairman, APEDA with Hon’ble L.G. UT of Ladakh during February 2022 to explore possibilities of export promotion of identified products such as Apricots, organic products and Sea buckthorn products from the region APEDA is organizing this international Buyer Seller Meet mobilizing stakeholders from around the globe for enhancing exports from the region.

 

Hon’ble M.P. Ladakh Namgyal during his address mentioned that the UT of Ladakh has gone ahead with Mission Organic has just completed first phase, 34 villages have been certified. With the move of organic certification, the UT of Ladakh products will fetch higher price thereby higher returns to the producers and exporters. 

 

Mathur, the Hon’ble L.G. Of Ladakh, during his address emphasized on adding more and more horticulture and agriculture products from the region e.g. Nubra valley black berries along with augmenting pre and postharvest facilities and logistics arrangements in order to enhance volume of products from the region to international market for higher returns to the producers and exporters. 

 

APEDA’s efforts to facilitate exports of identified products from UTs of Ladakh and Jammu and Kashmir as well as mobilizing international buyers to the region was appreciated as it was first event of its kind in the region to boost export. There has been overwhelming response from the FPOs, producers, cooperatives, exporters and importers as well as from the UT Administration which will enable convergence of the negotiations in to the business from the region.

For the first time, litchis from Malda, otherwise known as the Bengal’s mango hub, will be exported abroad, to London and Bahrain.

 

'Some fruit exporters have contacted us and have expressed interest in sending consignments of litchis abroad. They have found the ‘Bombay’ variety of litchi  produced in the district worthy of export. We had trained the litchi growers earlier toabstain from pesticides and other chemicals and many of them followed our advice. We are confident that the litchis exported from here will pass the food safety standards of those countries (UK and Bahrain),' said Samanta Layek, the Malda district horticulture officer,

 

He said that litchis produced in Malda have been sent to different states in India but this is for the first time that exporters have taken interest.

 

Uzzal Saha, the president of Malda Mango Merchants' Association that also has the litchi growers as its members, has confirmed that litchis from here will be exported to London and Bahrain.

 

'Initially, an order for around 20 tonnes of litchis of the ‘Bombay’ variety has reached us, 10 tonnes for London and 10 tonnes for Bahrain. We are expecting some more orders in due course,' said Saha.

 

According to the producers, the ‘Bombay’ variety of litchis, which will be exported, are larger in size.

 

The quantity of pulp is more and the seed comparatively smaller than many other litchi variants.

 

Although Malda is known to be the largest producer of mango in the state, litchis are also grown across the district.

 

In all, litchi plantations are spread across 1,300 hectares in Malda district. This year, around 15,000 tonnes of litchis have been produced in Kaliachak I, II and III blocks, and in Chanchal and Ratua blocks.

 

Encouraged by the interest of exporters, the horticulture department plans to increase litchi plantation in Malda.

 

'We will be in the field after the monsoons to encourage producers to plant litchi plants of the ‘Bombay’ variety, keeping in view its export value,' said Layek.

 

Growers are readying the consignments now for export.

 

'Treatment of the fruits such as sulphur fumigation will be done to remove fungus from the skin of the fruit,' said a grower.

The availability of containers has improved, and ocean freight rates have fallen by up to 15%, exporters have said.Still, the volume growth in exports in the ongoing fiscal year may not be significant as the global inventory is high and key rates in world markets are rising, they added.

 

The Federation of Indian Export Organisations (FIEO) has pegged India's merchandise exports in the current fiscal year at $475 billion, 14% higher than the previous financial year but much less compared to growth seen in FY22 over FY21.

 

In FY22, India's merchandise exports rose by 43% over FY21 to $418 billion.

 

'In FY22, global markets created an inventory as commodity prices went up. Exports had gathered momentum after the second Covid-19 wave, but now due to inflationary pressure the volume growth of exports will be less,' said Ajay Sahai, director-general of FIEO.

 

If the Russia-Ukraine conflict does not end soon, the dynamics might change, he said.

 

'As things stand today, India's merchandise exports in FY23 may not cross $475 billion,' Sahai added.

 

Since the Chinese economy is opening up after four months of Covid-19 led lockdowns, Indian exporters will face more competition from China in the global markets, he said.

 

'Container availability has improved, and the freight cost has gone down by 10%-15%. We have to see how long this situation continues,' said Mahesh Desai, chairman, Engineering Exports India

 

'Once China becomes active, the container shortage may again emerge,' said Ravi Sehgal, former chairman of the Engineering Export Promotion Council of India.

 

While international container prices have increased by up to 15% on average in May, in India they have declined, similar to the trend observed in China. There has been a month-on-month decline in the prices of 40-foot containers in Chennai, to $4,015 in May from $4,044 in April. India recorded its highest-ever textiles and apparel exports at $44.4 billion in the financial year 2022, indicating an increase of 41% over FY21.

 

Export of ready-made garments was at $16 billion with a 36% share in FY22, up 31% against the previous year.

The Cabinet Committee on Economic Affairs chaired by Prime Minister Shri Narendra Modi has approved a moratorium of three years (2020-21, 2021-22 & 2022-23) to Cochin Port Authority (CoPA) towards repayment of the balance outstanding Government of India (GoI) loans amounting to Rs. 446.83 crore to tide over the financial crisis due to COVID-19 pandemic.

 

The amount was to be repaid in 10 instalments commencing from 2018-19.  However, Cochin Port Authority could pay the instalments of 2018-19 and 2019-20 only.  From 2020-21, the traffic was badly impacted due to Covid-19 pandemic which adversely impacted the cash inflow.  As a result, Cochin Port could not pay the instalments of 2020-21 and 2021-22.

 

Cochin Port has been brought under the Major Port Authorities Act, 2021 with effect from November 2021.  The Cabinet Committee on Economic Affairs (CCEA) on 24.08.2016 had approved the proposal for waiver of Penal interest on Government of India Loans taken by Cochin Port for various infrastructural developmental activities during 1936-37 to 1994-95. 

India, Iran and Russia have given momentum to operationalise the International North South Transport Corridor (INSTC) –– the shortest connectivity route for Indo-Russian trade –– days after the Iranian Foreign Minister visited Delhi.

 

Russia has sent consignments for India this Saturday from St Petersburg which will travel to India via the Caspian Port of Astrakhan and Iranian Port of Anzali and from there to Bandar Abbas Port and thereafter to Western Indian ports to operationalise INSTC, ET has learnt.

 

'The consignments are two 40-feet containers of wood laminates weighing a total of 41 tonnes. The containers were loaded at St Petersburg and are heading toward Astrakhan where they will be loaded again at Solyanka Port. They will then traverse the Caspian Sea to reach Iran’s Anzali Port where they are scheduled to be transported to Bandar Abbas port city in southern Iran via trucks. The two containers will then be dispatched to India’s largest container port,' Dariush Jamali, director of a joint-owned Iranian-Russian terminal in Astrakhan, told Iranian news agency IRNA on Sunday.

 

The total journey will take less than 25 days, compared to the nearly 40 days it currently takes to transport goods from Russia to India and vice-versa. Besides reducing time taken for trade between India and Russia, INSTC is considered a viable option for Indo-Russian trade amid current geo-political challenges. INSTC, in the longer run, would be an alternative to the Suez Canal and Mediterranean dominated by some powers and Bosporus, according to sources who did not wish to be identified.

 

Connectivity via Chabahar Port and INSTC topped the agenda of the Iranian foreign minister’s visit to India last week. There has been a plan to link INSTC with Chabahar Port which India has assisted to expand and is being used for connectivity with Afghanistan and Central Asia.

 

The INSTC is a 7,200 km-long multimodal transportation network encompassing sea, road, and rail routes. It links the Indian Ocean to the Caspian Sea via the Persian Gulf onwards into Russia and Northern Europe and offers the shortest connectivity route between them. Multimodal routes through sea, rail, and road under the INSTC aim to reduce the carriage cost between India and Russia by about 30% and bring down the transit time from 40 days by more than half.

 

The foundation of the North-South transport corridor was laid on September 12, 2000, in accordance with an intergovernmental agreement signed between Russia, Iran, and India. Azerbaijan joined this agreement in 2005. This agreement was ratified by 13 countries (Azerbaijan, Belarus, Bulgaria, Armenia, India, Iran, Kazakhstan, Kyrgyzstan, Oman, Russia, Tajikistan, Turkey, Ukraine). The project has a number of components –– Northern and Western Europe –– the Russian Federation, Caucasus –– Persian Gulf (Western route); Central Asia –– Persian Gulf (Eastern Route); Caspian Sea –– Iran Persian Gulf (Central Route).

Israel and India are preparing to resume talks on a free trade agreement, Israel's Economy Ministry said on Monday, adding that an Indian delegation had arrived in Jerusalem to discuss framework rules and coordinate expectations for negotiations.

 

Last October, India and Israel agreed to resume free trade talks with an aim of signing a deal by mid-2022.

 

Israel's Economy Ministry said a senior team from India's Industry and Trade would meet with their Israeli counterparts to discuss the ground rules but did not say when actual trade negotiations would resume.

 

Ties between Israel and India have grown closer in the eight years since Indian Prime Minister Narendra Modi has been in power, and the two countries have formed a number of strategic, military and technology partnerships during that time.

 

Bilateral trade between Israel and India totalled $6.3 billion in 2021 up from $200 million in 1992 when the two countries opened diplomatic relations and Israel has emerged as one of India's biggest suppliers of weapons alongside the United States and long-term partner Russia.

 

'We share similar challenges in a wide range of fields, from agriculture, climate and water to homeland security, fintech and cyber,' Israeli Economy Minister Orna Barbivai said in a statement.

 

She called the relationship between the two countries 'strategic' and said a free trade deal would significantly boost existing collaboration.

 

Ron Malka, the ministry's director general and former Israeli ambassador to India, said in the statement that a deal would ease trade barriers for Israeli companies operating in India, strengthen trade and economic cooperation and help the government in its efforts to lower the cost of living.

 

Last month Israel signed a free trade agreement with the United Arab Emirates (UAE).

 

India aims to sign new trade deals with several countries including Australia, the UAE, Britain and Canada, to boost exports and help the country recover faster from its coronavirus-induced slowdown.

India on Monday strongly suggested the WTO to permit exports of food grains from public stocks for international food aid and for humanitarian purposes, especially on government-to-government basis, as the UN's World Food Programme was not able to ramp up its supplies to help needy nations.

 

During an agri intervention in a WTO session, commerce and industry minister Piyush Goyal said that the World Food Programme (WFP) over the last few years has demonstrated its inability to really ramp up supplies to the countries in distress.

 

The United Nation's World Food Programme works in over 120 countries and territories to supply life-saving food to people displaced by conflict or made destitute by disasters.

 

Citing data, the minister said that in 2020-21, the WFP programme can only procure 4.47 million tonnes at a cost of about USD 1.7 billion, which by itself is grossly inadequate to serve in the interest of humanitarian crisis or a problem that is faced by many countries in terms of their food security.

 

He added that countries like Sri Lanka, Bangladesh and Bhutan need food supplies.

 

India has food grain in its public stock holding programme, which can be used to help friendly neighbours, countries in distress, least developed nations and the poor and the vulnerable sections of society.

 

'I fail to understand what is holding back the WTO and its members from allowing government-to-government purchases for humanitarian purposes, in the event of a problem, in the event of food security being threatened. All of that (supplies) can be (done) on very transparent terms,' Goyal said.

 

'We believe that the WFP by itself has hardly contributed to world food security in any significant way. Their limitations of the programme and other than trying to tell the world that the WTO and its members have done something truly for addressing the concerns of world food security, it's not going to significantly change the scenario,' he added.

 

He added that there are many countries which have public stock holding which could immediately provide relief to their neighbours, to other countries in distress.

 

Due to this, India has proposed that 'we carve out an exemption for government-to-government purchases between countries so that we can support other countries particularly during humanitarian crises,' the minister added.

 

He also expressed concerns that the issue of finding a permanent solution to the issue of Public Stock Holdings (PSH) of grains for food security purposes.

 

Referring to a text, he said: 'Para 12 is pre supposing that PSH is not going to be finalised in this ministerial. I think it's extremely sad that a programme which is under consideration for several decades, which has been agreed to by the WTO in 2013, confirmed by the General Council in 2014, reaffirmed in 2015 is still not being finalized...'

 

He stated that the issue should not be pushed under the carpet.

 

China emerged as the top buyer of Indian rice during the pandemic, with the neighbouring country importing 16.34 lakh metric tonnes (LMT) — or 7.7 per cent — of India’s total rice export of 212.10 LMT in financial year 2021-22, according to an analysis of trade data.

 

The analysis shows that out of China’s total rice import from India of 16.34 LMT, nearly 97 per cent, or 15.76 LMT, was broken rice, which has seen a spike in demand from that country.

 

In fact, China is now the top buyer of Indian broken rice, which was earlier exported mostly to African countries.

 

In 2021-22, India’s total rice exports — both basmati and non-basmati — was 212.10 LMT, which is 19.30 per cent higher than 177.79 LMT exported in 2020-21. In the same period, rice export to China jumped by 392.20 per cent: from 3.31 LMT to 16.34 LMT.

 

Of India’s total rice export in 2021-22, basmati rice accounted for 39.48 LMT, which was 14.73 per cent lower than 46.30 LMT exported in 2020-21.

 

Non-basmati rice accounts for the lion’s share in the basket of Indian rice exports. During 2021-22, export of rice other than basmati was 172.62 LMT, which was 31.27 per cent higher than 131.49 LMT in 2020-21.

 

During 2021-22, India exported 38.64 LMT of broken rice to 83 countries; of this, maximum 15.76 LMT was procured by China — 476.40-per cent up from 2.73 LMT in 2020-21.

 

Trade experts say the reason for this increase in export of broken rice to China is the higher demand of rice for making noodles and wine in that country.

 

Vijay Setia, former president of All India Rice Exporters Association, said, 'China is buying mainly broken rice, which is converted to make wine and noodles.'

 

He said China had sent a delegation to India before the outbreak of Covid-19 and that delegation visited several rice mills.

 

Experts say another reason for this increase in demand could be rising prices of corn. The demand for broken rice has seen a spike at a time when prices of food items have registered an increase globally in recent months, particularly after Russia’s invasion of Ukraine.