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08 Aug, 2023 News Image

India may scrap wheat import duty, lower its stock limit.

The Indian government has decided to lower the stock limit for wheat to 2,000 tonnes from the current 3,000 tonnes in an effort to ensure ample availability in the domestic market. The move follows the Centre’s finding that over 40 million tonnes (mt) of wheat have been hoarded in the country, escaping the current stock limit provisions.

Besides, the government is considering lowering the import duty up to zero from the current 44 per cent (including cess) soon.

When asked about options available to the Government to check rising wheat prices, Food Secretary Sanjeev Chopra said the Centre has various options that are under consideration, including tweaking the stock limit as well as reducing the import duty. He did not specify when these measures would be in place. He, however, said the Government is aware of the fact that in the weekly auction by the Food Corporation of India (FCI), the average selling price has been increasing every week.

Chopra also said there was no plan under consideration for government-to-government import, especially from Russia.

Mystery over stocks

According to a June 12 notification, 10 tonnes of wheat limit has been fixed for any retail outlet, including big chains while 3,000 tonnes for traders and wholesalers. For processors of atta and other flour products such as sooji and maida, the maximum capacity will be either 75 per cent of the annual installed capacity of the mills or 10 months of actual requirement (June 2023-March 2024) based on monthly capacity.

According to sources, traders have declared to the government that they have 2.9 mt and processors have 6.2 mt, totalling 9.1 mt of wheat as on July 31. After factoring 30-35 mt, which is used for own consumption and seed and feed purposes, and an additional 9-10 mt declared stock held by processors and stockists, there should be 42-48 mt of wheat available in the market throughout the year, officials said. “When this stock outside the radar of stock limit will be released in the market no one knows,' an official source said on August 3.

The Agriculture Ministry has estimated wheat production in 2022-23 crop year at a record 112.74 mt. The wheat started arriving in the market from April and the government procured about 26.2 mt of the production. The official Agmarknet portal shows that the 21 mt of wheat arrived at various agri market yards (mandis) across the country between March 1 and July 31 this year.

Rising retail prices

The all India average retail prices of wheat and atta increased in June and July from their previous month’s rates. According to Consumer Affairs Ministry data, wheat prices were Rs.31.32/kg in April, Rs.31.27 in May, Rs.31.67 in June, Rs.31.96 in July and Rs.32.13 in August (1-3). Similarly, atta rates were Rs.36.55/kg in April, Rs.36.42 in May, Rs.36.95 in June, Rs.37.18 in July and Rs.37.37 in August (1-3).

The weighted average selling price in this week’s auction increased to Rs.2,208.33/quintal for FAQ from Rs.2,182.68 in the previous week. The reserve price for FAQ wheat is Rs.2,150/quintal. The weighted average selling price of URS wheat in current round was Rs.2,219.29, up from Rs.2,173.85 in previous round, whereas the reserve price is Rs.2,125. The highest price in the August 2 auction of FCI was recorded Rs.2,500/quintal in West Bengal and Maharashtra.

Source: thehindubusinessline.com

08 Aug, 2023 News Image

Meghalaya s turmeric now landing in UK, Netherlands. Mission Lakadong transformed farming.

The zigzag roads in the West Jaintia Hills district of Meghalaya are a gateway to villages that now draw traders from across India and abroad to the golden spice, turmeric. Beyond the mist and clouds that often wrap these remote villages, people have been growing Lakadong—considered to be the finest variety of turmeric in the world—for generations. Now, Meghalaya’s Lakadong Turmeric has got fresh legs. And one magic word is on every grower’s mind—curcumin, the active ingredient in turmeric that’s used for pharmaceutical purposes, lending it its premium value.

Five years after Meghalaya set up Mission Lakadong, the local turmeric has set the district abuzz with economic activity, trade, and transforming farming and making it export-ready. Now Meghalaya’s turmeric is landing in the United Kingdom and the Netherlands. The state’s biggest competitors are Telangana and Maharashtra.

Several other states eclipse Meghalaya when it comes to the quantity of turmeric produced, but when the scales of quality are put out, the numbers flip. Three varieties of turmeric are grown in the West Jaintia Hill district – Lachein, Lasyein and Lakadong. While the first two varieties yield only four to five per cent curcumin, Lakadong boasts an average of seven per cent curcumin content. And the number is only native to this tiny district, which is bordered by Bangladesh in the south and Assam in the north. All attempts at growing the same turmeric elsewhere resulted in a sharp fall in curcumin level.

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Source: theprint.in

08 Aug, 2023 News Image

India, Peru decides to resume FTA talks.

India and South American country Peru have decided to resume negotiations for a proposed free trade agreement (FTA) with an aim to promote two-way commerce and investment, a top government official said on Friday.

'We have decided to proceed with the FTA negotiations. We would be working out the priority areas...Post September, we will start engaging,' Commerce Secretary Sunil Barthwal told reporters here.

He also said that Chile is also requesting a similar agreement.

'If the countries are interested in FTAs, we will also look into possibilities,' he said at the sidelines of CII's India-LAC conclave.

The talks for an FTA were halted after a few rounds due to the breakout of the Covid-19 pandemic in 2020.

The main chapters of the trade agreement could include market access for goods, trade in services, movement of professionals, investments, dispute settlement, technical barriers to trade, trade remedies, rules of origin of goods, customs procedures and trade facilitation.

In an FTA, two countries significantly reduce or eliminate duties on most of the goods traded between them besides relaxing norms and rules to promote trade in services and increase bilateral investments.

Peru ranked third among export destinations for India in the Latin America and Caribbean (LAC) region.

The bilateral trade between the nations dipped to USD 3.11 billion in 2022-23 (exports stood at USD 866 million and imports USD 2.25 billion) from USD 3.6 billion in 2021-22.

Among the top-10 commodities that India exports to Peru are motor vehicles, cars, products of iron and steel, cotton yarn and fabrics. While the imports include bulk minerals and ores, gold, fertilisers, crude oil and zinc.

Latin America and the Caribbean (LAC) Region nations include Belize, Ecuador, Nicaragua, Brazil, El Salvador, Panama, Chile, Guatemala, Peru, Costa Rica, Guyana, and Suriname.

While speaking at the conclave, Barthwal also said that considering that imports from India constitute less than 2 per cent of LAC's total imports, there is significant scope for expansion of India-LAC bilateral trade.

While efforts are underway to double the bilateral trade to USD 100 billion in the coming years, that will also call for a new approach to broadbase the trade exchanges, such as integrating with diversified global value chains in a re-globalised world, he added.

Further he also emphasised on the need for closer India-LAC cooperation in the area of energy transition.

Fresh thinking is called for in areas like renewals, battery manufacturing, energy storage technology, chemical industry impact, that are aligned with the net zero goal, he said.

He suggested a Joint Economic and Trade Cooperation (JETCO) model for cooperation between the two regions, besides calling for close India-LAC cooperation on issues in the forthcoming trade ministers level meeting of the WTO in Abu Dhabi next year.

Source: zeebiz.com

08 Aug, 2023 News Image

Indian government unlikely to allow sugar exports till March 2024.

The government on Friday said sugar production in the next season starting October 1 is unlikely to drop from the current season’s level. The availability in the domestic market will be higher due to the continuation of the ban on exports, which will keep prices under check during the festival season.

However, to address the expected higher availability of sugarcane next year which may increase diversion towards ethanol, an inter-ministerial group will likely to recommend revised ethanol prices for next season in a month.

The assertion from the Government comes two days after Ithe Indian Sugar Mills Association (ISMA), an association of private mills, released its preliminary estimates of production for the 2023-24 season stating the output (after diversion towards ethanol) may drop to 31.68 million tonnes (mt) from the estimated 32.8 mt in the ongoing season to September.

'We expect sugar production (after diversion towards ethanol) to be around 32.5 mt, which is almost at par with ongoing season ending September 30,' a senior Food Ministry official said. He said since export may not be allowed until at least March 31, 2024, against 6.2 mt permitted during the current season, the domestic availability is expected to be higher.

'In fact, we assume 5-5.5 mt may be diverted towards ethanol against about 4 mt this season,' the official said. ISMA has estimated 4.5 mt of sugar is likely to be diverted for ethanol production next season against 4.1 mt in the current season. Actually, sugar is not diverted to produce ethanol, which is made out of molasses or sugarcane juice/syrup or grains. The estimate is based on how much quantity of sugar could have been produced from the same quantity of sugarcane that gets diverted towards ethanol.

‘Prices will remain stable’

Speaking to the media, Food Secretary Sanjeev Chopra said: 'This, we thought is creating some sort of panic that there is a shortage of sugar in the country. We thought we must clarify. It is highly premature to assess what will be sugar production in the next harvest beginning October.'

He highlighted that the sugarcane acreage has actually gone up to 56 lakh hectares (lh) this year from 53 lh a year ago. But, he acknowledged that there have been some concerns about patchy rainfall initially.

Chopra said prices of sugar and other essential commodities such as edible oils and wheat will remain stable during the upcoming festival season. He said the country has 108 lakh tonnes (lt) of sugar now, while 46-48 lt would be required to meet the demand during August and September and the crushing season will start in October. The annual sugar consumption is estimated at 275 lt.

On edible oil, he said prices will be stable as the industry has imported a huge volume in the last three months when prices were relatively lower. As high as 17.5 lt of crude edible oil was imported in July, he said.

Source: thehindubusinessline.com

08 Aug, 2023 News Image

Madhya Pradesh: Red Hot Chillies Of Khargone To Get GI Tag In Khargone.

The Madhya Pradesh horticulture and food processing department has selected a total of 46 products as specialities in the state and has applied for the geographical indication (GI) tag to aid with worldwide promotion.

These 46 products include Nimar's distinctive crop, Khargone Red Chillies which is already making a splash in foreign markets as part of the government's 'One District, One Product' initiative.

Red chillies of Khargone district are going to get special product status under Vikas Parv.

The chillies of the district have also been included in 46 special horticulture products of the state. For this work is going on in mission mode. Chilli crop was sown in the district in an area of 46556 hectares in 2023 in the state.

Notably, Bediya chilli mandi in Khargone district is the country's second-largest chilli market. Due to the branding of chilli crop here, the expectation of quality and business has increased.

Following the instructions of Chief Minister Shivraj Singh Chouhan, the department of horticulture and food processing conducted a survey of the status of horticulture products in various districts of the state.

Chilli To Probably Get GI Tag This Financial Year

Deputy director horticulture KK Girwal told that all the inputs including chilli area and research papers of the Agricultural Research Centre have been sent for documentation which is being done by government advisor Rajinikanth. The process will be completed in three months and thus chilli will probably get GI tag in this financial year.

Product Will Be Globally Branded

Distinctive geographical identification is what 'GI Tag' stands for and obtaining a GI tag will result in agricultural product branding. This will bring international attention to the product and farmers will get economic benefits. This initiative of the government is expected to increase the business here thus paving the way for increasing the prosperity of the district.

Source: freepressjournal.in

08 Aug, 2023 News Image

Bhutan reaches out for rice amid export ban, India likely to offer it.

Bhutan has requested India to allow rice export to the country after India banned overseas shipments of non-basmati rice, causing global rice prices to rise. Bhutan has made a diplomatic request for rice shipments of up to 90,000 tonnes. India's rice ban allows for exemptions for export under government-to-government deals and in cases of requests made by "friendly countries" with genuine food-security needs. India's share in global rice exports is nearly 40%.

Bhutan has requested India to allow rice export to the Himalayan kingdom, following India’s July 20 ban on overseas shipments of non-basmati varieties of the grain , a person aware of the matter has said. India’s decision has sent global rice prices soaring.

The world’s biggest rice exporter imposed the ban over growing concerns of El Nino, a weather pattern whose effects ripple around the globe, affecting the Indian monsoon and hitting rice output, and Russia’s blockade of Ukraine’s grain shipments.

Bhutan has made a diplomatic request to India for rice shipments of up to 90,000 tonnes, the person said. Global prices have hit a 12-year high following India’s ban. The FAO’s All-Rice Price Index leapt 129.7 points in July 2023, up 19.6% from a year ago. India’s share in global rice exports is nearly 40%.

India’s rice ban allows for exemptions for export under conditional government-to-government deals and in case of requests made by 'friendly countries” which have genuine food-security needs, the person cited above said. The same relaxations also apply to the wheat-export ban instituted in May 2022.

The conditions also stipulate that food exported by India under such exemptions cannot be used for trade and has to be utilized for domestic consumption, the person added.

Such diplomatic requests are first reviewed by the ministry of external affairs, a second person said, adding Bhutan’s request for rice is very likely to be acceded to. Once the proposal is sent to the food ministry, the Food Corporation of India, the Centre’s main food agency, will process the request and release the stocks.

Immediately after the wheat ban last year, food minister Piyush Goyal had said that India wasn’t a significant exporter of wheat, yet the country would cater to 'genuine food-security needs of any friendly country”.

In September last year, India also banned the export of broken rice, but it has allowed exports to some countries.

'In the case of rice also, India will take up requests of any country that may face a dire need of food and seeks humanitarian assistance. This especially applies to our neighbours,” the second person added.

Since imposing the wheat and broken rice bans, India cleared over 300,000 tonnes of wheat shipments to Nepal, 200,000 tonnes of broken rice to Indonesia, 500,000 tonnes of broken rice to Senegal and 50,000 tonnes of broken rice to Gambia under humanitarian food assistance.

Global supplies have tightened since Ukraine is a major supplier of all types of grain and Russia’s blockade of its food shipments has caused a rally in global cereal prices. On July 17, Russia announced it was pulling out of the so-called Black Sea grain deal under which Ukraine could operate its ports. Days later, India clamped a ban on rice exports.

Source: hindustantimes.com

08 Aug, 2023 News Image

Thailand's rice exports benefiting from India's export ban: Minister.

Thailand is benefiting from India's rice export ban and has no reason to halt shipments of the grain itself, its commerce minister said on Monday.

The government would ensure sufficient rice output for both domestic consumption and exports, and also make sure domestic prices are not too high, minister Jurin Laksanawisit told a press briefing.

In the first seven months, Thailand shipped 4.8 million metric tons, he said, adding monthly exports stood at 700,000 to 800,000 metric tons.

Thailand, the world's second-largest rice exporter after India, is expected to export more than 8 million metric tons of rice this year, said Charoen Laothamatas, president of Thai Rice Exporters Association, up from 7.71 million last year.

Two trade sources said last week that some rice exporters in Thailand and Vietnam were re-negotiating prices on sales contracts for around half a million metric tons for August shipment, after India shocked global markets with a ban on exports of non-basmati white rice.

Source: economictimes.indiatimes.com

07 Aug, 2023 News Image

Kharif Crop Sowing Crosses 915 Lakh Hactare.

The Department of Agriculture & Farmers’ Welfare has released progress of area coverage under kharif crops as on 4th August 2023.

S. No.	Crop	Area Sown
S. No.	Crop	2023	2022
1	Rice	283.00	273.73
2	Pulses	106.88	117.87
a	Arhar	37.38	40.58
b	Urdbean	28.01	32.49
c	Moongbean	28.89	31.47
d	Kulthi	0.22	0.18
e	Otherpulses	12.38	13.15
3	Shri Anna cum Coarse cereals	164.20	162.43
a	Jowar	12.83	13.71
b	Bajra	66.59	65.99
c	Ragi	5.46	4.06
d	Small millets	3.18	pib.gov.in
07 Aug, 2023 British demands on data related issues, duty concessions on dairy out of India-UK FTA: Sources. Protecting the interest of domestic players, India has kept demands of Britain on data related issues and giving any kind of duty concessions on dairy sector out of the ambit of the proposed free trade agreement being negotiated between the two countries, sources said. However, India is looking at providing duty concessions on auto, and certain confectionery items, they said. The negotiation for the agreement has reached a critical stage and in all likelihood it could be concluded by October end or November. The talks received a great impetus due to the recent visit of Commerce and Industry Minister Piyush Goyal and Commerce Secretary Sunil Barthwal to London in July, where both held a series of meetings with different stakeholders including senior British officials. The negotiation would get a further fillip during the meetings of trade ministers of India and the UK at the sidelines of G20 trade ministers meeting this month in Jaipur. 'The visit of the Indian minister and secretary was very positive for the negotiations. Most of the issues are sorted out between the two countries,' one of the sources said. To provide duty concessions in the automobile sector, several rounds of consultations have been held with the domestic players. In the dairy sector, India would not touch any product because of the sensitivities of the domestic players, they added. As both India and UK are strong players in the services sectors, the two sides are negotiating hard for easing of norms in a number of sectors such as IT, healthcare, accounting, education, medical practices, banking, insurance, legal, and telecommunications. The UK has shown keen interest in areas like banking, insurance, legal, and telecommunications. The UK firms have raised concerns over data localisations norms in India. Another official said that India and the UK are very close to concluding negotiations for a proposed free trade agreement as both sides are working to iron out differences on issues including investment treaty, intellectual property rights (IPRs) and rules of origin. Out of the total 26 chapters in the FTA, 19 have been closed. In the rules of origin chapters, both countries are talking about product specific rules, value addition, and certification. The 'rules of origin' provision prescribes minimal processing that should happen in an FTA country so that the final manufactured product may be called originating goods in that country. Under this provision, a country that has inked an FTA with India cannot dump goods from some third country in the Indian market by just putting a label on it. It has to undertake a prescribed value addition in that product to export to India. Rules of origin norms help contain dumping of goods. Investment is being negotiated as a separate agreement (bilateral investment treaty) between India and the UK and it could be concluded simultaneously with the free trade agreement. The bilateral trade between the countries increased to USD 20.36 billion in 2022-23 from USD 17.5 billion in 2021-22. India's main exports to the UK are ready-made garments and textiles, gems and jewellery, engineering goods, petroleum and petrochemical products, transport equipment, spices, machinery and instruments, pharmaceuticals and marine products. The main imports include precious and semi-precious stones, ores and metal scraps, engineering goods, professional instruments other than electronics, chemicals and machinery. In the services sector, the UK is the largest market in Europe for Indian IT services. In the field of investment, the UK is one of the top investors in India. In 2022-23, India received USD 1.74 billion in foreign direct investment from the UK as against USD 1 billion in 2021-22. During April 2000 and March 2023, investments stood at USD 33.9 billion. Under such pacts, two trading partners significantly reduce or eliminate customs duties on the maximum number of goods traded between them, besides easing norms to promote trade in services and investments. Source: economictimes.indiatimes.com
07 Aug, 2023 High-level India-EU meetings this month to boost FTA talks. High-level meetings between India and the European Union (EU) will be held this month to take stock of the progress of talks on the proposed free trade agreement, according to an official. 'The EU officials are coming for the G20 trade ministers meeting this month in Jaipur. There is a high-level meeting at the minister level on August 26 in the national capital between India and the EU. 'Commerce Secretary Sunil Barthwal is also likely to meet EU Director General for Trade Sabine Weyand in Jaipur,' the official added. These meetings would give an impetus to the ongoing negotiations between the two sides on the free trade agreement (FTA). The G20 Trade and Investment Ministerial Meeting, under India's G20 Presidency, is scheduled at Jaipur on August 24-25. So far, five rounds of talks have been held on the agreement. India and the 27-nation bloc resumed negotiations on June 17 last year after a gap of over eight years on the proposed agreements on trade, investments and Geographical Indications (GI). India had started negotiations for a trade pact with the EU in 2007, but the talks stalled in 2013 as both sides failed to reach an agreement on key issues, including customs duties on automobiles and spirits and the movement of professionals. India's merchandise exports to EU member countries have increased to USD 74.5 billion in 2022-23 from USD about USD 65 billion in 2021-22. Imports also rose to USD 60 billion in 2022-23 from USD 51.4 billion in 2021-22. The EU accounts for about 17 per cent of India's total exports and about 8.5 per cent of the country's total imports. A GI is primarily an agricultural, natural or manufactured product (handicrafts and industrial goods) originating from a definite geographical territory. Typically, such a name conveys an assurance of quality and distinctiveness, which is essentially attributable to the place of its origin. Besides greater market access for its products like textiles, leather, gems and jewellery, the Indian industry is looking for easy access for skilled professionals in the EU markets. On the other hand, the EU side has an interest in areas like auto, digital trade, data protection, sustainability and financial services sectors like banking and insurance. Earlier, India asked the European Union to lift restrictions on the flow of sophisticated outsourcing business to India following the status of a data-secure country. Source: economictimes.indiatimes.com
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