India, the world's biggest rice exporter, has ample stocks of rice and there is no plan to restrict exports, the top official at the food ministry said on Monday.

 

India banned wheat exports in a surprise move last month.

 

'We have more than sufficient stocks of rice, so there is no plan to consider this,' Food Secretary Sudhanshu Pandey said responding to a question whether India would consider any curb on rice exports.

The government has received requests for wheat supplies from at least five countries including Indonesia, one of the world’s largest importers of the grain, and Bangladesh after India banned wheat exports last month, a government official said.

 

While banning wheat exports amid spiralling global prices on 13 May, India kept open the option of government-to-government (G2G) supplies for neighbouring countries and others who may be facing a food security threat.

 

'Following the ban India has received requests from Indonesia, Oman, UAE, Bangladesh and Yemen. The government is evaluating their wheat requirements and availability of wheat with us,' the official said.

 

Trade experts said Bangladesh could be looking for more wheat imports from India as it not only imported nearly half the total wheat exported by India but also was a buyer of wheat from Russia and Ukraine.

 

Official numbers showed that Bangladesh imported wheat worth $1.8 billion from Russia and $610.80 million from Ukraine in 2020. As per the Directorate General of Commercial Intelligence and Statistics (DGCIS), India exported wheat worth around $1 billion to Bangladesh in 2021-22.

 

The requests are also driven by the considerably lower price of Indian wheat compared to the international market. The ministry of consumer affairs, food and public distribution has said that Indian wheat is selling nearly 40% lower compared with international prices.

 

Indonesia was one of the top importers of wheat from Ukraine with imports in 2020 crossing $543 million. India exported nearly $105 million worth of wheat to Southeast Asia in 2021-22.

 

In 2020, Yemen imported wheat worth $174.31 million from Russia and $144.40 million from Ukraine. The UAE imported $146 million worth of wheat from Russia.

 

'From a global context, India is not a very large player in the export market as far as wheat is concerned. So the wheat ban will have little impact. But we could be looking at more consistent policies from the government, especially related to agri exports in the future,' Upasana Chachra, chief India economist, Morgan Stanley said.

 

World Trade Organization (WTO) Director General Okonjo Iweala Ngozi on Sunday said countries should not underestimate the impact of export restrictions, adding that such steps can exacerbate the ongoing global food crisis.

 

'You saw that in the 2008-2009 food crisis, just those kinds of actions did lead to price spikes. In the food security declaration, our members are trying to speak about how they would try to restrain themselves from taking these kinds of actions,' Ngozi said during a press conference in Geneva.

 

'WTO must respond to the looming food crisis. International wheat prices have increased 56% compared to May last year. Economies everywhere are facing inflationary pressure,' she added.

The country's total merchandise exports are likely to be at USD 117.2 billion in the first quarter of FY23, according to India Exim Bank. The total merchandise exports stood at USD 95.5 billion in the corresponding quarter of the previous year, the bank said on Monday.

 

Non-oil exports continue to witness a double-digit growth of 12.6 per cent, amounting to USD 93 billion, during the first quarter (April-June) of 2022-23, compared to USD 82.6 billion in the year-ago period.

 

The rise in the country's exports could be attributed largely to the continued increase in global commodity prices, driven by supply shocks, enhanced price competitiveness owing to exchange rate movements, and benefits from possible trade diversion, as per the bank.

 

The growth forecast may be subject to commodity price volatility and uncertainties in the global economy, mainly driven by the current geopolitical tension, it said.

India may permit export of wheat to meet Indonesia’s food grain demand through an arrangement where the Southeast Asian nation supplies palm oil without any interruption at a competitive rate to address India’s concerns over shortage of edible oil, one of the key factors powering inflation, two people aware of the matter said, asking not to be named.

 

Although India has banned export of wheat last month to assure its adequate availability domestically even as global wheat prices have skyrocketed due to supply concerns, it has kept the option of exports open though government-to-government (G2G) deals, the two added.

 

India imposed a ban on wheat exports on May 13 'with immediate effect' . Indonesia’s ban on palm oil exports in April 28 lasted for three weeks. Palm oil, inexpensive when compared to other edible oils, is a preferred cooking medium in India.In 2020-21, India imported 133.5 lakh tonnes of edible oil, out of which the share of palm oil was around 56%.

 

While again allowing exports on May 23 amid domestic protests, Jakarta has now put in place several safeguards, and there is no guarantee that the ban will not return, they said.

 

Indonesia is keen on importing Indian wheat, which is possible only through a G2G deal according to Directorate General of Foreign Trade’s (DGFT) notification on May 13, one of the two people said.

 

Jakarta’s ban on palm oil exports ( Indonesia accounts for about one-third of all vegetable oil exports) majorly impacted Bangladesh, Pakistan and India resulting in a significant price rise of edible oil, the second person added.

 

'Even though Indonesia has eased exports of palm oil, a G2G deal may ensure that there will be no sudden disruption in supply of the edible oil to India even in future. Besides it may also ensure a competitive rate,' this person explained.

 

'The government’s top priority is to ensure assured and adequate supply of essential food items such as edible oil to calm the inflation,' the first person said.

 

The people cited above and experts said India is highly dependent on import of edible oil and it must secure a favourable supply contact with Indonesia because global geopolitical situation is uncertain and Ukraine war may prolong to push up food prices further.

 

India’s retail inflation surged to a 95-month high at 7.8% in April , which is well above RBI’s official upper tolerance level of 6% for the fourth consecutive months. For May, the headline number came in at 7.04%.

 

'The recent measures taken by the GoI (duty-free imports of 2 mn tonnes each of crude soyabean and sunflower oil for two years) and Indonesia’s decision to lift the ban on palm oil exports is expected to cool the prices of such items in the near-term. Nevertheless, persistent geopolitical developments and India’s high import reliance may prevent an appreciable correction in edible oil prices,' an ICRA report on retail inflation outlook said on Friday.

Indonesia has approved export permits for 1.16 million tonne of palm oil products under a programme to accelerate shipments after it reopened exports. Under the acceleration scheme, the world's biggest palm oil producer aims to export 1 million tonne or more of palm oil products by the end of July.

 

Out of this, in the first phase, India traders expect to get around one lakh tonne of palm oil and overall 50% of the export from Indonesia is expected to come to India.

 

This decision of Indonesia has impacted the prices of palm oil in Malaysia which witnessed a 3% decline in prices.

 

Shankar Thakkar, president of the All India Edible Oil Traders’ Association,  has stated that the decision by the Indonesian Government appeared to be an attempt to re-enter the global edible oil market.

 

Last Thursday, the Indonesian Government has started an export acceleration scheme for its domestic palm oil industry, which aimed at export of more than 1million tonne of crude palm oil and some of its derivatives.

 

Meanwhile, in India, the edible oil trade witnessed a strong market scenario due to delay in monsoon. Oil seeds like mustard and groundnut market witnessed a surge as delay in monsoon would mean late arrival of crop (usually around Dipawali) and will have a direct impact on supplies and higher prices.

 

The traders also say that demand is expected to go up in the monsoon season and supplies from Indonesia will help in easing the prices.

A number of non-tariff barriers, like rules related to investor protection, intellectual property rights, and harmonisation of governance and standards, are among the key sticky points in the Free Trade Agreement (FTA) that India and the United Kingdom target to sign by Diwali this year.

 

'The UK businesses, as well as the Indian businesses, want the equal focus to be given to non-tariff barriers, particularly the technical barriers to trade and investment,' Richard Heald, Executive Chair, UK India Business Council (UKIBC), told ANI in an interview.

 

He said there are a number of non-tariff barriers that both countries need to address in order to have a comprehensive trade deal. 'It's not only about tariff barriers but also non-tariff barriers,' he said.

 

He said the non-tariff barriers that the two countries need to address include the issues around rules of origin, harmonisation of governance and standards, confirmation of rules around intellectual property rights, and investor protection.

 

Heald, who served as chief executive officer of UKIBC from 2010 to 2020, said addressing the non-tariff barriers would 'give the free trade agreement absolute credibility as far as the businesses are concerned, both in the UK and India.'

 

India and the UK announced their intention to have a comprehensive free trade agreement during a virtual summit held in May 2021 between Prime Minister Narendra Modi and his British counterpart Boris Johnson. Formal negotiations on the proposed FTA between the two countries started early this year.

 

The third round of talk was held on May 6 in a hybrid mode with some of the teams meeting in New Delhi and the majority joining virtually.

 

During the third round of negotiations, 'draft treaty text was advanced across the majority of chapters. Technical experts from both sides came together for discussions in 60 separate sessions covering 23 policy areas,' as per a joint statement released after the meeting.

 

India's Commerce and Industry Minister Piyush Goyal visited London in the last week of May to take the negotiations forward. After the meetings with UK negotiators, Goyal had expressed hope that the FTA would be signed by Diwali.

 

The fourth round of negotiations is due to be hosted by the UK this month.

 

During a summit meeting held in April 2022, prime ministers of India and the United Kingdom set the timeline of Diwali 2022 (October 24) for formalisation of the FTA.

 

On the expectation of meeting the Diwali deadline, Heald said the leadership of the two countries has shown a strong political will to meet the deadline.

 

'A substantial progress has been made. Indian negotiating team and UK negotiating team have been meeting every five weeks or so for the discussion,' he said expressing hope that the FTA deal between the two countries would be signed by the end of this year.

 

He said the FTA would be designed to ease and facilitate not only the existing activities but also look at the areas and issues that would appear in the future.

 

Heald said the UK India Business Council has been pitching for the removal of tariffs as well as non-tariff barriers between the two countries. The UK India Business Council is the sole accredited UK Government Overseas Business Network Initiative provider for India.

 

Asked about the impact of the Russia-Ukraine conflict on the FTA negotiations, Heald said, 'I don't think that will affect the actual content of the FTA. However, it might affect the time.'

 

On the proposed FTA negotiations between India and the European Union (EU), Heald said it would be more complicated as India would be required to deal with 28 countries, which are members of the EU.

 

'Here you are dealing bilaterally between UK and India. When you are dealing with the EU, you have to deal with 28 countries. I am not saying that the priority is being given to the EU or the UK, all I am saying is that, in practice, a bilateral agreement is easier than dealing with a multiplicity of opinions of nation,' he said.

 

India is scheduled to restart FTA negotiations with the EU on June 17 in Brussels. Commerce and Industry Minister Piyush Goyal is scheduled to lead the Indian side at the negotiations.

 

India and the EU held 16 rounds of talks between 2007 and 2013. The talks have been stalled for the last nine years on several issues related to tariff and non-tariff barriers. (ANI)

The Food Safety and Standards Authority of India (FSSAI) has extended the last date for submission of annual returns for the fiscal 2021-2022. Now the food businesses can file the annual returns till June 30, 2022.

 

The Food Authority has issued an order in this regard saying that submission of annual returns physically or through email will not be considered.

 

The decision to extend the timeline was taken after the food authority got representation from the food businesses requesting for an extension.

 

'Considering the representation of the FBOs seeking extension for the submission of annual returns, it has been decided to extend the last date for online submission of annual returns till 30th June 2022,' the order read.

 

According to the FSS Licensing and Registration of Food Businesses Regulations, 2011, the submission of annual returns by every licensed manufacturer and importer should be done by 31st May of every year.

 

Earlier in April this year, the Food Authority had also directed all the manufacturer-exporters to submit their annual returns through FoSCoS.

 

FSSAI, through its order in December 2020, had mandated the online submission of annual returns only through the FoSCoS portal.

Iran’s state-run shipping company said it started its first transfer of Russian goods to India, using a new trade corridor that transits the Islamic Republic, an Iranian port official said.

 

The Russian cargo consists of two 40-foot (12.192 meters) containers of wood laminate sheets, weighing 41 tons, that departed St. Petersburg for the Caspian Sea port city of Astrakhan, the state-run Islamic Republic News Agency said on Saturday, citing Dariush Jamali, director of a joint-owned Iranian-Russian terminal in Astrakhan.

 

The report didn’t say when the cargo, which it described as an initial 'pilot' transfer to test the corridor, left or give any more details about the goods in the shipment.

 

From Astrakhan, the cargo will cross the length of the Caspian to the northern Iranian port of Anzali and will be transferred by road to the southern port of Bandar Abbas on the Persian Gulf. From there it will be loaded onto a ship and sent to the Indian port of Nhava Sheva, IRNA said.

 

Jamali said the transfer was being coordinated and managed by the state-run Islamic Republic of Iran Shipping Lines Group and its regional offices in Russia and India and is expected to take 25 days.

 

Since Russia was sanctioned over its war on Ukraine, Iranian officials have been keen to revive a stalled project to develop the so-called North-South Transit Corridor that uses Iran to link Russia to Asian export markets. The plan involves eventually building a railroad line that can transfer goods arriving at Iranian Caspian Sea ports to the southeastern port of Chabahar.

The government has received requests for wheat supplies from at least five countries including Indonesia, one of the world’s largest importers of the grain, and Bangladesh after India banned wheat exports last month, a government official said.

 

While banning wheat exports amid spiralling global prices on 13 May, India kept open the option of government-to-government (G2G) supplies for neighbouring countries and others who may be facing a food security threat.

 

'Following the ban India has received requests from Indonesia, Oman, UAE, Bangladesh and Yemen. The government is evaluating their wheat requirements and availability of wheat with us,' the official said.

 

Trade experts said Bangladesh could be looking for more wheat imports from India as it not only imported nearly half the total wheat exported by India but also was a buyer of wheat from Russia and Ukraine.

 

Official numbers showed that Bangladesh imported wheat worth $1.8 billion from Russia and $610.80 million from Ukraine in 2020. As per the Directorate General of Commercial Intelligence and Statistics (DGCIS), India exported wheat worth around $1 billion to Bangladesh in 2021-22.

 

The requests are also driven by the considerably lower price of Indian wheat compared to the international market. The ministry of consumer affairs, food and public distribution has said that Indian wheat is selling nearly 40% lower compared with international prices.

 

Indonesia was one of the top importers of wheat from Ukraine with imports in 2020 crossing $543 million. India exported nearly $105 million worth of wheat to Southeast Asia in 2021-22.

 

In 2020, Yemen imported wheat worth $174.31 million from Russia and $144.40 million from Ukraine. The UAE imported $146 million worth of wheat from Russia.

 

'From a global context, India is not a very large player in the export market as far as wheat is concerned. So the wheat ban will have little impact. But we could be looking at more consistent policies from the government, especially related to agri exports in the future,' Upasana Chachra, chief India economist, Morgan Stanley said.

 

World Trade Organization (WTO) Director General Okonjo Iweala Ngozi on Sunday said countries should not underestimate the impact of export restrictions, adding that such steps can exacerbate the ongoing global food crisis.

 

'You saw that in the 2008-2009 food crisis, just those kinds of actions did lead to price spikes. In the food security declaration, our members are trying to speak about how they would try to restrain themselves from taking these kinds of actions,' Ngozi said during a press conference in Geneva.

 

'WTO must respond to the looming food crisis. International wheat prices have increased 56% compared to May last year. Economies everywhere are facing inflationary pressure,' she added.

The first Indian wheat consignment of 55,000 tonnes to Egypt has got through all government tests for quality and other parameters after anchoring at Alexandria port, official sources said today (Friday).

 

Discharge of the cargo, exported by Mera Group in the vessel Mana, will begin tomorrow (Saturday). The sources, quoting Neal Sahni, CEO and Co-Founder of Mera Group, said Cairo had appreciated the quality of wheat that India had sent.

 

'Egypt is the toughest market to sell wheat. It is also the biggest. The pleasant manner in which it has accepted the cargo is a slap on Turkey which rejected a Durum wheat consignment two weeks ago,' said Delhi-based exporter Rajesh Paharia Jain. 

 

The shipment of wheat to Egypt will likely open up opportunities of barter trade between both nations. 'In all possibilities, India could import rock phosphate in return for the wheat shipment,' Jain said. 

 

Sale before ban

The wheat sale took before India banned its exports from May 13. The deal was signed soon after an Egyptian official team, including plant quarantine and pest risk department authorities, visited various facilities in India and clearedi its exports.

 

A report from Cairo quoted Sahni as saying his firm and Indian officials had worked hard to ship quality wheat meeting Egyptian standards. 

 

 In fact, India’s ban came mid-way when the ship was being loaded but since the letter of credit (LC) had already been issued there was no problem in shipping the consignments. 

 

India has nominated 19 more vessels that will carry another 2.3 lakh tonnes. Of these, four are currently stuck at Indian ports. 

 

Soon after Indian imposed ban on wheat exports Egypt said the Narendra Modi government had agreed to provide 5 lakh tonnes this year. Egypt’s General Authority for Supply Commodities (GASC) added India to its already accredited 26 wheat import origins, including Russia, Ukraine, France, Germany, Kazakhstan and the US to facilitate the shipments.

 

Lower production, procurement

GASC is Egypt’s official procurement agency and it has sought wheat from India to fill the void caused by the supply of the grain being affected from the Black Sea region due to the Russia-Ukraine war.  

 

India banned wheat exports as its production this year has been affected by the heatwave that swept across the nation during March-April. Wheat production this year has been lowered to 106 million tonnes (mt) from initial estimates of a record 111.34 mt. 

 

The other reasons why India banned the foodgrain’s shipments were lower procurement by the Food Corporation of India for the buffer stocks as open market prices ruled higher than the minimum support price of Rs.2,015 a quintal. Prices gained in view of export demand due to the Ukraine war. 

 

However, India, while banning wheat exports, said it would help neighbouring and vulnerable countries with the foodgrain. 

 

Meanwhile, the 56,877 tonnes of Durum wheat rejected by Turkey on 'flimsy grounds' has anchored at an Israeli port after Egypt refused to let in the consignment rejected by Turkey.