The durum wheat consignment that Turkey rejected has been diverted to Egypt, which is facing bread shortages after supplies from Russia and Ukraine dried up in the wake of the war, people aware of the development said.

 

Egypt, one of the largest wheat importers, is scrambling to secure new supplies from other countries, including India, to cool rising prices. The 56,000-tonne consignment to Turkey was cleared before India announced the wheat export ban on 13 May.

 

Food secretary Sudhanshu Pandey on Thursday said the consignment had met quarantine requirements when it left India. He said Turkish officials are yet to reach out to Delhi on why the wheat shipment was rejected. 'The shipment belonged to ITC Ltd, and I am told that the financial transaction has also been completed. The company had sold it to a foreign-based company, which further sold it to a Turkey-based firm,' Pandey said.

 

S&P Global Commodity Insights cited traders based in Istanbul as saying that Turkey rejected the wheat consignment after they detected the rubella virus.

 

'The company (ITC) had exported to a Netherlands customer on FOB terms (free on board), and the cargo was loaded after being checked and cleared by both the buyer nominated surveyors as well as by the plant quarantine authorities,' a spokesperson for ITC said.

 

The embassies of Turkey and Egypt did not immediately respond to emails seeking comment.

 

On Thursday, government officials said as many as five countries have formally requested Indian wheat after the ban. The government said it would allow wheat exports on a government-to-government basis.

 

Exporters aware of the development said the transit time to Turkey is about two weeks, and variation in temperatures and humidity might have led to phytosanitary issues.

 

However, an expert said it’s unlikely the cause for the infection. 'Rubella develops because of seed or soil contamination. Such issues should have been detected before shipments. It looks like a case of negligence,' an expert from a non-profit research institute said.

 

Experts expressed concerns over repeated complaints of phytosanitary issues for Indian shipments. Earlier this year, Indonesia suspended Indian agricultural exports after finding quality issues. In addition, India failed to register laboratories that test food safety and issue a certificate of analysis.

 

The expert cited above said such incidents reflect badly on the country and is because of poor quality control measures taken by Indian authorities.

 

'The ministry should address such issues. Such issues are not spotted as testing labs in India are not up to the mark. Now checks by other countries would rise,' he added.

The Centre’s timely intervention in regulating the mounting export of Wheat and Sugar through export regulations has insulated the prices of these commodities from increase in contrast to the prices prevailing in the global market. 

 

The Government’s priority is to ensure sufficient availability of sugar at reasonable rates. The prices of sugar in the domestic market in the last twelve months are under control. The wholesale prices of sugar in India are in the range of Rs. 3150 to 3500 per quintal while the retail prices are in the range of Rs. 40-43 per Kg in the country. Due to lower production in Brazil, there may be shortage of sugar globally and therefore to safeguard the domestic availability and interest of Indian consumers, Government took timely measure to regulate sugar exports with effect from 01st June 2022 till further orders, with a maximum export of 100 LMT during the year.

 

The price of EU Durram wheat in the international market is around Rs. 43/kg whereas Indian wheat is selling at an average price of Rs. 26/kg in wholesale.  There is a price difference of Rs. 17/kg i.e. about 39.5% discount to  the international market. All other countries except India are selling wheat at around 450 to 480 USD/ton. This has resulted in a rush of export contracts and as a consequence the domestic retail prices rose by 16.08 % year on year. In order to protect the consumers from the rising prices, wheat export has been regulated with effect from 13th May 2022. It has been done to manage the overall food security of the country and to support the needs of neighbouring and vulnerable countries.

 

The price situation of the above commodities is being closely monitored on day to day basis so that appropriate timely measures may be taken to keep a check on their prices. The Inter-Ministerial Committee on Agri-Commodities chaired by Secretary (Food) which is in place closely monitors the prices and availability of agricultural commodities keeping in view the interest of the farmer, industry and consumers. The committee reviews price situation on weekly basis, consider relevant measures in relation to edible oils and other food items depending on the domestic production, demand, domestic  and international prices and international trade volumes.

 

It may be recalled that in a bid to control the continuous rise in the cooking oil prices since past one year, the Central Government has cut the basic duty on Crude Palm Oil, Crude Soyabean Oil and Crude Sunflower Oil from 2.5% to Nil. The Agri-cess on these Oils has been brought to 5%. The basic duty on Refined Soyabean oil and Refined Sunflower Oil has been slashed to 17.5% from the current 32.5% and the basic duty on Refined Palm Oils has been reduced from 17.5% to 12.5%. The Government has extended the free import of Refined Palm Oils for a period upto 31.12.2022 .To control prices of edible oils, futures trading in mustard oil on NCDEX has been suspended and stock limits have been imposed.

 

The Government  has imposed stock limits on Edible Oils and Oilseeds for a period up to 31st December 2022. This Order has been issued to ensure the smooth availability of edible oils and oil-seeds in the country. In order to ensure strict enforcement of the control order,  Central teams from the Department of Food & Public Distribution are conducting surprise inspections of the stocks of edible oils & oilseeds held by Retailers, Wholesalers, Big Chain Retailers and Processors in major oilseed producing/consuming States to prevent hoarding and profiteering.

 

In its latest initiative to ease the prices of Edible Oils and provide relief to the consumers, the Government has issued Notification  for allocation of Tariff Rate Quota (TRQ) for import of 20 LMT of Crude Soyabean Oil and 20 LMT of Crude Sunflower Oil for the financial year 2022-23 and 2023-24 at zero import duty and zero AIDC. This has been done keeping in view the rising domestic prices of Edible Oils, average increase in domestic demand and uncertainty/decline in Global Palm Oil availability.

 

In case of edible oils, the prices of Soyabean Oil (FOB Brazil) has increased by 35.50% whereas in the domestic market, the increase has been only 13% over the year. The international prices of Sunflower Oil (FOB Rotterdam) has increased by 35.86% while  Sunflower Oil in the domestic market has increased by 12.12% over the year.  RBD Palmolein internationally is hovering around 56.88% increase over the year whereas in India, the increase has been to the extent of 13.98% only.  The increase in domestic production of Groundnut, Mustard and Soyabean cropsduring the crop year 2020-21 have contributed  to lowering the prices of Soyabean, Sunflower and Palm Oil.

 

The above steps taken by the Government has resulted in keeping the prices of edible oils under tight check.  The recent decision of the Government to reduce the excise duty levied on petrol and diesel has further helped in cooling down the prices of all commodities. 

 

 Throughout the world, food prices have increased sharply due to in crude oil prices, high transport costs due to container shortage and trade disruptions due to the current geo-political scenario. Indian consumers have got relief in their food basket due to these pre-emptive steps taken by the Government to control the sharp increase in the prices of essential items such as edible oils, wheat, rice, atta and sugar.

India has exported around 8.5 million tonnes of sugar since the current season began on Oct. 1, with exporters likely to contract another 1.5 million tonnes for overseas sales in the next five months, trade and government sources said on Thursday.

 

India, the world's biggest sugar producer and consumer, on May 24 imposed restrictions on exports of the sweetener for the first time in six years by capping exports at 10 million tonnes.

 

The government also asked exporters to seek export permits, or authorisation, for any overseas shipments between June 1 and Oct. 31.

 

'Until the restriction to register cargoes with us came into place on June 1, mills exported about 8.5 million tonnes of sugar,' said a senior government official who didn't wish to be named as he was not authorised to speak to the media.

 

Another government official, who also declined to be identified, confirmed the shipments.

 

Global prices are attractive and sugar mills are keen to cash in on higher international rates but they are waiting for the government to issue export permits, traders said.

 

'Current global prices are attractive for exports and there is a huge demand for Indian sugar,' said a Mumbai-based dealer with a global trading house. 'India will be easily exporting 10 million tonnes.'

 

'Cane crushing is almost over and mills have already sold most of their raw sugar stocks, so in the coming months they will primarily be exporting white sugar,' the trader said.

 

Cane crushing in India begins in October and starts to taper off by April.

 

Traders are currently offering Indian raw sugar between $465 and $470 a tonne a free-on-board, and white sugar between $480 and $485 a tonne.

 

There is a strong demand for Indian sugar, especially from Iran, Indonesia, Bangladesh and the UAE (the United Arab Emirates,' said Rahil Shaikh, managing director of MEIR Commodities India, a trading house.

 

India’s fight for a permanent solution for public stock holding of foodgrains at the WTO to protect its right to continue expanding its MSP programmes has gathered steam with the G-33 group of developing countries and African nations finally coming together to submit a joint proposal on a solution.

 

This is significant as the crucial WTO Ministerial Conference (MC12) is to begin in Geneva in about 10 days and many countries, mostly developed, are attempting to put the important issue of permanent solution on the back burner.

 

'On Tuesday, a total of nearly 80 members from the G-33 group, the African Group and the ACP group put their act together and submitted a joint proposal at the WTO suggesting a permanent solution on public stock holding based on a fair way of calculating subsidies with a current external reference price instead of an ancient one. This solution should be acceptable to all as it is logical and will provide a level playing field to developing countries,' an official tracking the matter in Geneva told BusinessLine.

 

Rules under AoA

According to the present rules under the Agreement on Agriculture (AoA), subsidies given to the farmer, calculated as the excess of MSP over its international price, also known as External Reference Price (ERP), plus subsidy on inputs, are clubbed as aggregate measurement of support (AMS). Developing countries are required to keep AMS below 10 per cent of value of agriculture production. 'One big problem is that the ERP is pegged to the base period of 1986–1988 without any adjustments for inflation which gives an inflated AMS,' the official explained.

 

The permanent solution proposal circulated by the G-33, ACP and African Group, proposes that domestic support provided by a developing country member for public stockholding programmes for food security purposes, shall be deemed to be compliant with the required articles of the AoA and not subject to reduction commitments. 

 

Where public stockholding programmes for food security purposes of a developing country include programmes under which stocks of foodstuffs are acquired and released at administered prices, then, the AMS shall be calculated based on the actual quantity of foodstuffs (as opposed to the entire eligible production) acquired at administered prices.

 

The ERP, instead of being pegged to 1986-88 prices, should either be the three-year average price based on the preceding five-year period excluding the highest and the lowest entry for that product or adjusted for excessive inflation as per the methodology, the proposal said.

 

'This is an extremely important proposal having the weight of the entire African Group, the ACP and the G-33 group and assumes even more importance in the light of the draft declaration on agriculture that pushes a permanent solution to MC13 (instead of MC12). They should now push hard to get a decision in MC12 and not agree to other decisions until that is agreed,' said Ranja Sengupta from Third World Network.

 

Peace clause

Although a peace clause negotiated by India at the Bali Ministerial in 2013 and later gives developing nations protection against legal action in case limits are breached, it is subject to a number of onerous conditions that makes it difficult to use. India has used the peace clause for rice as its MSP support has been exceeding the prescribed limits but several developed country members have  complained that it has not met notification requirements under the clause.

 

'It is very important for developing countries to get a permanent solution as there is no guarantee that the peace clause will continue to give enough protection against action by developed countries. That is why the G-33 is insistent that a permanent solution be delivered so that such conditionalities can be done away with,' another official explained.

Union Minister of State for Fisheries, Animal Husbandry and Dairying Sanjeev Balyan on Wednesday indicated that government might intervene to ensure reasonable prices for poultry farmers who are paid lower prices by private companies.

 

Balyan asked his ministry officials to call a meeting of all stakeholders to address the issue of low price realisation and ensuring better market integration.

 

'We have to intervene if small poultry farmers are exploited. The issue of market integration of poultry farmers with companies needs to be addressed,' Balyan said addressing Unnat Pashudhan Sashakt Kisan Conclave in New Delhi, organised jointly by industry body CII and Department of Animal Husbandry and Dairying.

 

Crackdown on private companies

Citing a 2005 study of Ludhiana-based Guru Angad Dev Veterinary and Animal Science University, the minister said that the total cost incurred by a farmer was Rs. 11.15/kg, while the return was only Rs. 6.41, incurring a loss of Rs. 4.75/kg. He wondered if the private companies want to operate like East India Company (of British era).

 

As a result of poor market integration and lower price realisation, Balyan pointed out that there has not been a single successful poultry farm in the last 10 years.

 

A Poultry Federation of India (PFI) executive said that the cost of production has further increased to Rs. 28.53 per bird whereas farmers are getting Rs. 14-16 per bird under the contract farming. 'The private companies should come out with a formula to calculate the cost of production, else poultry farmers will continue to suffer,' he said.

 

Focus areas

The conclave focussed on three key areas — increasing productivity and improving animal health, value addition and market linkages, and innovation and technology.

 

Suggesting the National Dairy Development Board (NDDB) to set up cooperative in other States as well, which is the mandate, Balyan said it was not able to set up a successful cooperative like Amul even though it had succeeded in some places. He also said that though Amul procures milk from Uttar Pradesh and Haryana, it is not providing services that are given to Gujarat dairy farmers.

 

Balyan, who is also a veterinary science graduate, asked scientists to find solution to ensure poultry and dairy feed are available at a lower price. 'If soyabean rates have shot up, cannot there be an alternative raw material (for making animal feed)? What solution do the scientists have for this,' the minister asked.

 

There has been a severe feed crisis in Uttar Pradesh as wheat straw prices have reportedly shot up to record level of Rs. 1,400-1,500 per quintal in central region of the States which was earlier available at Rs. 600-700.

Ahead of a key ministerial meeting of the World Trade Organization (WTO) this month, at least 60 countries including India, China, Pakistan, Egypt, Indonesia and South Africa have proposed a new method to calculate subsidies given to purchase, stockpile and distribute food to ensure food security for developing and poor nations.

 

The G33, African Group and the ACP (African, Caribbean and Pacific) group on Tuesday submitted a joint proposal to the WTO in which they said a permanent solution for public stockholding should account for inflation and also be based on a recent reference price instead of an old one based on 1986-88 prices.

 

They proposed that exports of food grain from public stocks be allowed for international food aid and humanitarian purposes to the needy countries.

 

'The proposal has a huge political weight behind it, and it is crucial as such a large number of countries have come together at a time when global food prices are rising and they need to ensure public stockholding of food,' said an official, adding that it was a diverse group of proponents with small countries as well as large food producers.

 

They have suggested a new methodology to calculate the subsidies by either accounting for 'excessive inflation' in the External Reference Price (ERP) or calculating the ERP based on the last five years excluding the highest and the lowest entry for that product. ERP is the average price based on the base years 1986-88 and has not been revised for decades.

The free trade agreement signed by Israel and the United Arab Emirates (UAE) on Tuesday and an earlier trade pact inked by India and the UAE have the potential for 'extensive trilateral cooperation', Israeli ambassador Naor Gilon said.

 

Israel’s landmark free trade deal with the UAE was the first such agreement with an Arab country and followed the establishment of diplomatic ties in 2020 after the signing of the Abraham Accords. The pact was signed in Dubai by Israel’s economy and industry minister Orna Barbivay and her UAE counterpart Abdulla bin Touq al-Marri.

 

'We are happy about the historic FTA agreement signed between Israel and the UAE. This agreement, jointly with the comprehensive economic partnership agreement (CEPA) signed between India and the UAE, has the potential for extensive trilateral cooperation and business partnerships,' Gilon said.

 

'It has also further created opportunities for collaborations in different fields with the US,' he added.

 

These milestones were made possible by the Abraham Accords, which have been 'a significant turning point in creating numerous opportunities and promoting peace and prosperity for all', Gilon said.

 

India and the UAE signed the CEPA on February 18 after one of the shortest negotiation processes in recent memory.

 

Israel, India, the UAE and the US are also part of a new grouping that has been described as the 'West Asian Quad'. The grouping was established as a forum for economic cooperation at a virtual meeting of foreign ministers of the four nations last October. The four countries have said there is no military angle to their cooperation and they are pursuing a constructive agenda focused on the economy, especially infrastructure projects.

 

The Israel-UAE agreement is expected to increase bilateral trade in goods and services, increase Israeli exports to the Emirates and provide customs exemption, immediately or gradually, on 96% of trade between the two countries. This will include food items, agricultural products, medical equipment and medicines.

 

The agreement also covers regulatory and standardisation issues, customs, collaboration, government procurement, e-commerce and intellectual property rights.

 

Barbivay said this is the 'first free trade zone agreement with an Arab state'. She added the pact will 'break down obstacles and advance new economic opportunities and partnerships that will serve as a basis for our shared path'.

 

UAE’s industry and advanced technology minister Sultan Ahmed Al Jaber said the trade agreement with Israel will create a new paradigm for the region, and 'represents something larger than business – the importance of building significant partnerships'.

 

The Abraham Accords, signed in September 2020, established diplomatic relations between Israel and the UAE. Negotiations on the FTA began in November 2021 and were completed on April 1 this year. Since the signing of the Abraham Accords, Israel-UAE trade in goods touched $885 million in 2021.

Dakar [Senegal], June 2 (ANI): Vice-President M Venkaiah Naidu reviewed the progress in the relationship between India and Senegal during a meeting with the President of Senegal, Macky Sall at the Presidential Palace in Dakar on Wednesday (local time).

 

Naidu met the President of Senegal at the Presidential Palace in Dakar yesterday which was followed by delegation-level talks in Dakar.

 

Both the leaders agreed to further strengthen cooperation in various fields including agriculture, health, defence, railways, energy and culture.

 

Naidu will be in Senegal from June 1 to June 3. He will be holding delegation-level talks with the President of Senegal Macky Sall, the President of the National Assembly Moustapha Niasse and other dignitaries, according to the Ministry of External Affairs (MEA).

 

'Our relationship with Senegal is also characterised by shared understanding on many issues, we had democracy and open society and those values are binding us. And this year Senegal is chair of the African Union and this visit assumes greater importance,' Dammu Ravi, Secretary (ER) of the Ministry of External Affairs (MEA).

 

Ravi further said that the main interest in Senegal in terms of trade is that the country holds huge natural resources, particularly phosphate, which is of great interest to secure a fertiliser supply from that side.

 

Secretary (ER) further said that the Vice President will also deliver a public talk at Universite Cheikh Anta Diop (UCAD), the biggest university in Africa. After Senegal, Vice President will fly to Qatar, the last destination of his African countries’ visit.

 

Africa has a huge potential of joining collaboration in the exploration of Oil and Gas, especially in Western Africa, the MEA said. (ANI)

 

As part of Azadi Ka Amrit Mahotsav, the Department of Animal Husbandry & Dairying, in association with CII, organised a conclave with a focus on dairy & poultry farmers, innovative entrepreneurs, startups and industry as well as a digital exhibition to showcase the best 75 indigenous breeds from bovine/caprine/avian/porcine species.

 

The conference at the conclave focussed on three technical thematic sessions including increasing productivity and improving animal health, value addition and market linkages and innovation and technology. The focus was also on showcasing the key trends, identifying the opportunity and drawing a clear roadmap for the dairy and poultry sector with focus on enhancing farmers’ incomes.

 

According to the CII, while the production of agricultural crops has been rising at a rate of 1.5 to 2 per cent per annum, that of eggs and broilers has been rising at a rate of 8 to 10 per cent per annum. As a result, India is now the world’s fifth largest egg producer and the 18th largest producer of broilers.

 

Also, India is the largest producer and consumer of milk supported by sustained growth in the availability of milk and milk products. With 302.34 million cattle heads, almost 18% of the total bovine population globally, India accounts for around 22% of the world’s milk annually.

 

Experts suggest, 'Given the large cattle population, India is uniquely positioned to increase its production capacities, by way of increasing productivity per milch animal. Also, good animal genetics, focus on feed management, strengthened breeding infrastructure, and advanced breeding methods such as artificial insemination and embryo transfer offer scope for better animal health management.'

 

On the subject of value addition, the experts opined that over the past few years, India has witnessed significant increase in the consumption of traditional value-added dairy products such as ghee, dairy sweets, curd, butter, alongside emerging value-added products like cheese, yogurt, UHT (ultra-heat treatment) milk, flavoured milk, dairy whitener and whey.

 

'At the same time, innovative healthy dairy products are being added to the product portfolio as most dairy processors are expanding their offerings to access the evolving value-added product market, a result of the changing consumer preference for milk products. We are also seeing alternatives like A2 cow milk, goat milk, camel milk finding shelf space,' the deliberations concluded.

India has slashed the base import prices of crude and refined palm oil, while raising the price of crude soyoil, the government said in a statement late on Tuesday.

 

The government revises base import prices of edible oils, gold and silver every fortnight, and the prices are used to calculate the amount of tax an importer needs to pay.

 

India, the world's biggest edible oils importer, last week allowed duty free imports 2 million tonnes of soyoil.