Sugar shipments from June 1 only on permits

The government on Tuesday night announced that sugar exports from June 1 would be allowed only through permits and fixed a maximum quantity of 10 million tonnes (mt) for this season (October-September). Seen part of several steps taken in last few days to rein in inflation, sugar will now be under complete government control.

 

'Export of sugar (raw, refined and white sugar) is placed under restricted category from June 1, 2022 onwards,' the Directorate General of Foreign Trade (DGFT) said in a notification May 24. The Order is valid until October 31, 2022. But, the restrictions would not be applicable on sugar being exported to the EU and the US under CXL and tariff rate quota (TRQ) as these are exported under special provision through permits.

 

In sugar season 2021-22, about 8.2 mt of the sweetener has been dispatched from sugar mills for export out of which about 7.8 mt have been already shipped, so far whreas a record 9 mt has been contracted. This means the government expects there is no problem of availability in domestic market as another 2.8 mt can go out of the country.

 

'It is a preventive measure after what has been experienced in cotton. The government does not want to export higher and a situation comes when the country has to import in future. There has to be a balance based on production,' a government official said justifying the curbs.

 

Sugar mills and exporters need to take approvals in the form of an export Release Order (RO) from Directorate of Sugar in the Ministry of Food and Public Distribution.

 

The objective of this restriction is to ensure closing stock of sugar at the end of sugar season (on September 30, 2022) remains 6-6.5 mt, which is sufficient to meet domestic demand for 2-3 months-- 2.4 mt/month released for domestic consumption. Crushing in new season starts in last week of October in Karnataka and by first week of November in Maharashtra whereas it is post-Diwali in Uttar Pradesh. Supply of sugar takes place from previous season for at least first two months of the new season.

 

India had exported 7 mt of sugar in 2020-21 (October-September) as against 0.62 mt in 2017-18, 3.8 mt in 2018-19 and 5.96 mt in 2019-20.

 

The Centre has been continuously monitoring the situation in the sugar sector, including production, consumption, export as well as price trends in wholesale and retail markets all over the country, officials said. The government control has ensured that 99.5 per cent of cane dues for 2020-21 sugar season got paid and about 85 per cent of cane dues of current season have been released to farmers by mills.

 

Wholesale prices of sugar in India are range bound between Rs 3,150-3,500 per quintal while retail prices are also within control in the range of Rs 36-44 per kilogram in different parts of the country, official data show.

 

Acting on the recommendations of the Rangarajan committee, sugar sector de-control programme started during UPA in 2013-14 with abolition of levy system and release order mechanism. Under levy system, mills used to sell 10 per cent of their production to the government at cheaper rates for the subsidised sale programme through ration shops. Release mechanism empowers the government to decide how much quantity each sugar mill can sell in open market every month. While release order mechanism was re-introduced in 2018, the same year a new minimum selling price of sugar was introduced which in effect empowers the government to decide at the minimum price consumers should pay to buy sugar. Only levy system is yet to return.

The CEO, FSSAI, has asked food safety officials (FSOs) to focus on enforcement activities and ensure quality of the food products under their jurisdiction.

 

He urged the above while speaking to them in Hyderabad during his recent visit.

 

The FSOs were particularly asked to regularly collect samples of high risk food categories like meat and milk with an increased frequency. The officials were also asked to maintain transparency while conducting searches, sampling and other enforcement activities.

 

Further, the FSOs were asked to conduct regular inspections of food at railway stations, canteens of educational institutions, government establishments, and public and private offices.

 

Commenting on the subject, Ashwin Bhadri, CEO, Equinox Labs, says, 'The decision of conducting strict inspection helps to ensure the FBOs adhere to the norms and regulations framed by the FSSAI.The FBOs are recommended to maintain the quality of the consumables they provide. There are different methods by which the FBOs can easily communicate with the consumers to know the feedback to enhance  consumer satisfaction while through inspections and audits the quality of the food product can be maintained.'

Deputy Commissioner Deba Kumar Mishra on Thursday inaugurated a Virtual Buyer Seller Meet for Tezpur Litchi which was held at the conference hall of Tezpur University Guest House, organized by the Biswanath College of Agriculture, Assam Agriculture University, in joint association with Agricultural and Processed Food Products Export Development Authority (APEDA), National Bank for Agriculture and Rural Developmet (NABARD), office of the District Agriculture Officer, and Assam Agribusiness and Rural Transformation Project (APART) and Sonitpur district administration.

 

In his inaugural speech, Deputy Commissioner Deba Kumar Mishra welcomed all participants to the virtual meet and stressed the importance of providing a platform for interested buyers and sellers to interact so that both parties get an optimum price for the fruit which has seen a huge demand in both domestic and international markets in the last few years. He also appealed to the Farmers' Producers Organizations to focus on enhancing the production of the famous Tezpur Litchi to meet the demand for the fruit, which was conferred with the GI tag in 2015 for its unique taste and flavor.

 

District Agriculture Officer i/c Dilip Gayan assured litchi producers present of extending all possible help to chart out a proper plan for expanding crop plantation and production and appealed to the farmers to make judicious use of pesticide and take proper care and ensure that the quality of litchi is maintained every year.

 

Dr Pallab Kumar Sarma, Chief Scientist, AICRPDA and Coordinator, CBBO Local Office, Biswanath College of Agriculture, AAU, Coordinator, TEC, Tezpur University, Prof Manuj Kr Hazarika, other dignitarie, local Llitchi farmers and officials of the department of agriculture were present in today's meet which was organized primarily with the objective to find potential buyers of Tezpur Litchi.

 

The FPO, Agnigarh Producer Company Limited is supported by NABARD and promoted by Biswanath College of Agriculture under the Central Sector Scheme on Formation and Promotion of FPCs. The virtual meet was also attended by individual buyers, representatives of various export companies who have expressed interest in procuring Litchi for the coming harvesting season.

 

Officials present made presentations and sessions on Scope of Export, Industry Linkage and Value Addition, Quality of Litchi and Marketing, availability of litchi and harvest window, buyer-seller discussion were held during the latter half of the day.

Indian officials advised wealthy nations to stop wasting food and pointed out New Delhi makes up less than 1% of global wheat exports after the Group of Seven developed economies criticized India’s ban on wheat shipments amid the Russia-Ukraine war.

 

Commerce ministry officials told Mint that at least eight countries, including Egypt, Turkey and Kuwait have exercised export restrictions amid wheat shortages triggered by the war. G7 nations, they said, have no 'locus standi' to ask India to keep grain exports open. India exported over $600 million worth of wheat in March and April to offset shortages, they added.

 

'As per the UN Environment Programme, the US ranks 59 in terms of household food waste estimate per kg/capita every year. Japan, Italy, and Germany are at 64, 67 and 75 respectively,' one of the officials said.

 

'As per the food waste index 2021, India is one of the lowest in the world at 50. Besides, India ranked 19th in 2020 and 35th in 2019 among major wheat producers of the world,' he added.

 

To be sure, the Russia-Ukraine war has disrupted nearly 30% of global wheat exports. This made Indian grain exports crucial despite it being a minor player.

 

However, Pradeep S. Mehta, secretary-general of the global consumer advocacy firm CUTS International, criticized the 14 May ban.

 

'By announcing the ban, you are denying price realization for our farmers. At the WTO, you are looking for a permanent solution to exports but banning wheat exports. This sends a wrong signal. Such knee-jerk reaction is not good for our image as a reliable exporter,' he said.

 

Mehta warned that the ban may result in wheat prices falling below MSP. 'Prices have already neared MSP in some states and the farmers will have to bear the consequence. It could fall below MSP soon.'

 

Another official said that in the past, several developed nations have exported large quantities of grain only to find that they might need to import some in order to fulfill domestic requirements.

 

'But India cannot afford to be in that position. Over 800 million people are dependent on crucial programmes such as the Pradhan Mantri Garib Kalyan Anna Yojana (PM-GKAY) food security scheme. Who will we turn to fulfill our enormous requirement for grain? Food security is crucial for a country the size of India,' the official added.

 

 

This official said data on wheat production comes with a lag.

 

'Export restriction is a regular step countries take in an event of need. We are in line with WTO rules. Ban on wheat exports is a temporary measure. If data after May 31 shows that conditions have improved, our procurement goes up, the decision could get reversed,' he added.

 

A third official, however, said that the commerce ministry had planned to export wheat to several countries and it could have helped India gain markets in the long run.

 

Queries sent to the commerce and industry ministry remained unanswered at press time.

 

India and Brazil have agreed to strengthen their cooperation in agriculture and allied farm sectors.

 

Animal Husbandry, Fisheries, and Dairying Minister Parshottam Rupala met his Brazilian counterpart Marcos Cordeiro during a five-day visit that concluded on May 20.

 

'Rupala held very fruitful discussions with his Brazilian counterpart and both ministers agreed to further strengthen the mutually beneficial ties,' an official statement said.

 

Rupala also held meetings with Presidents of the Brazilian Association of Zebu Breeders (ABCZ), Mayor of Uberaba, Brazilian Confederation of Agriculture and Livestock (CNA), and Brazilian Cooperatives Organization (OCB) and discussed ways to increase cooperation in the dairy sector through Research and development (R&D), genetic improvement, and trade and investment.

 

In January 2020, Brazil for the first time in its history had signed 15 memorandum of understandings (MoU) and agreements with India and decided to widen cooperation in various areas including animal husbandry and dairying, oil and natural gas, bio-energy, ethanol, trade and investment, and many more.

 

A Joint Declaration of Technical Cooperation between the National Dairy Development Board (NDDB) and Brazilian Zebu Breeders Association (ABCZ) was also signed in 2020.

 

During the visit, Rupala also visited the Embrapa Cattle Dairy (Embrapa Gado de Leite) research center in Juiz de Fora and stressed on the early finalization and implementation of a work plan under the MoU signed in 2016.

 

Training of Indian professionals in Brazil in IVF technology and identification of Brazilian companies to take up IVF embryo production in India are the key activities being identified under the work plan.

Describing the digital economy as a goose that lays golden eggs, the head of the US-India Business Council (USIBC) has called for the creation of structures, regulations and the legal framework to ensure the continued vitality and growth of this key sector in the US and India.

 

Addressing the 7th India Ideas Conclave in Bangalore on Sunday hosted by the India Foundation, at the panel 'Commerce & Industry 2.0.' President of the USIBC Atul Keshap discussed India's impressive development, the success of government-led digitisation efforts, and the country's status as the fastest-growing large economy.

 

'Digital economy trade is the goose that lays the golden eggs between both of our countries...My appeal to you would be that we make sure that we create the structures, and the regulations, and the legal framework to ensure the continued vitality and continued growth of the digital economy in the United States and India,' Keshap, also a former top American diplomat, said.

 

'There is a sweeping revolution happening in India, and it is going to have an enormous positive impact on India, on America, and on the entire world. After centuries of disruption, India is returning... to its historic stature as one of the largest and most dynamic and prosperous economies on earth,' Keshap said.

 

The former State Department diplomat, who recently served as the Charge d'affaires of the US Embassy in India, was speaking on transformations in infrastructure, economic policy, and the digital economy among other areas.

 

During the panel discussion, Keshap expressed optimism that US-India cooperation could help address some of the global economic challenges.

 

'We can have a dispositive impact in building a dependable, resilient, free world supply chain for all of the things that we must have - the critical materials of fuelling and powering and supporting innovation societies - things like semiconductors and rare earth,' he said.

 

Responding to questions, Keshap emphasised that the main imperative for India to attract continued investment from global companies and build stronger trade ties with the United States is to create an enabling and predictable policy landscape.

 

'An investor wants stability, predictability, transparency, ease of doing business, simple procedures, and a level playing field, they don't want an unfair advantage,' he said.

 

Reaffirming the USIBC's vision of a USD 500 billion US-India trade partnership, Keshap highlighted the digital economy as a space for future growth and opportunity, according to a press release issued here.

India wants the World Trade Organization (WTO) to allow exports of foodgrain from public stocks for international food aid and humanitarian purposes, especially on a government-to-government basis, an official said on Monday.

 

Ahead of a key ministerial meeting of the WTO next month, India has said that it does not expect a big outcome on agriculture issues although food security is a subject of discussions.

 

Fisheries subsidies, e-commerce, response to the pandemic, including Trade-Related Aspects of Intellectual Property Rights (TRIPS) waiver, and WTO reforms are the other areas where outcomes could be possible, said the official, who did not wish to be identified.

 

India is not in favour of giving binding commitment under the WTO on supply of foodgrains to the UN's World Food Programme (WFP) as it would restrict the country's policy space to deal with domestic food security concerns, according to the official.

 

'At the WTO, India has been raising the issue that the exports from public stocks for the purposes of international food aid or for non-commercial humanitarian purposes, including on government-to-government (G2G) basis should be allowed,' said the official.

 

At present, the WTO members cannot export foodgrains from public stockholdings as they are subsidised grains.

 

India's approach is crucial as a group of about 70-80 countries, led by Singapore, is pushing for binding commitments to not levy export restrictions on the foodgrains procured by the WFP.

 

'WFP is a cause of concern and we need flexibility. Covid and then Ukraine conflict have demonstrated that there is a requirement for G2G arrangement also besides WFP,' the official said.

Malaysia’s government met with the country’s biggest poultry producers to discuss subsidies and ensure continuity of local supply as the nation moved to ban exports of chicken in the latest food protectionist move in the region.

 

The Minister of Agriculture and Food Industries met 12 producers and livestock groups including Leong Hup Poultry Farm Sdn., HLRB Broiler Farm Sdn., PWF Corporation Bhd., and the Federation of Livestock Farmers’ Association of Malaysia on Monday, following a Cabinet meeting that discussed the ban.

 

Malaysia will halt exports of 3.6 million chickens a month from June 1, and investigate allegations of cartel pricing, Prime Minister Ismail Sabri Yaakob said Monday. The move is likely to hit hard in Singapore, which sources a third of its supply from Malaysia, as well as in Thailand, Brunei, Japan and Hong Kong.

 

The ban is the latest in a series of government measures aimed at easing domestic prices as nations around the world battle rising food costs, partly driven by the war in Ukraine crimping food supplies. Indonesia recently temporarily banned palm oil exports, India restricted wheat exports, and Serbia and Kazakhstan have imposed quotas on grain shipments.

 

The Singapore Food Agency said the restriction may result in temporary disruptions to the supply of chilled chicken in the city-state, and urged consumers to be open to switching to frozen chicken or other meat products. About 34% of Singapore’s chicken imports were from Malaysia last year, it said, with almost all imported as live chickens and slaughtered and chilled in the city-state.

 

'If the disruption to chicken supply is temporary, then it may be manageable,' said Selena Ling, head of Treasury Research & Strategy at OCBC Bank in Singapore. 'But if it’s persistent and more worryingly, reflective of more protectionist measures by other countries over food security and inflation concerns, then this could be a lose-lose scenario for everyone.'

 

The Malaysia Competition Commission is investigating reports that there are cartels that control the price and output of chicken among large companies, Ismail said, promising stern action against any firms found sabotaging supply.

 

'If it’s true these cartels exist, we will take legal action against them,' he said. State news agency Bernama reported that there was a shortage of poultry locally as cartels had planned to stop farm operations over the weekend.

 

Last week Ismail abolished the approved permit rules for imports of some food items including chicken, cabbage and evaporated milk to secure adequate food supplies in the country. Malaysia imports about 60% of its food needs, and has been impacted by higher import prices as well as the weakening ringgit.

 

Malaysia’s food inflation is set to continue in the coming months amid elevated global commodity prices, domestic supply chain disruptions and depreciation of the local currency, researchers at MIDF Amanah Investment Bank wrote in a note Monday. The country is highly exposed to global shocks in the food supply chain given its status as a a net food importer, it said.

 

Farmers are already struggling with reduced weight gain among their chickens on account of the quality of their feed, as well as diseases and extremely hot weather, according to the Agriculture and Food Industries Ministry. 'This has affected the supply of chicken in certain areas,' it said in a statement on Sunday.

 

In 2020, Malaysia exported poultry meat worth $18.9 million, making it the 49th largest exporter of the product in the world.

The baton of leadership has officially been passed on in the United Arab Emirates (UAE) with the demise of the UAE president and ruler of Abu Dhabi, Sheikh Khalifa bin Zayed Al Nahyan, on May 13,2022.India and UAE share a very close relationship, built on a strong foundation of brotherhood, trade, energy security, security and people to people ties.

 

The baton of leadership has officially been passed on in the United Arab Emirates (UAE) with the demise of the UAE president and ruler of Abu Dhabi, Sheikh Khalifa bin Zayed Al Nahyan, on May 13,2022. He has been succeeded by his half-brother, Sheikh Mohamed bin Zayed Al Nahyan (MBZ), who has been the de-facto ruler of the country since 2014 as Sheikh Khalifa had been ill. Within a day of the demise of Sheikh Khalifa, members of the Federal Supreme Council, made up of rulers of the UAE's seven emirates unanimously elected MBZ as the president, setting stage for a new era in the growth of UAE.

 

The election of MBZ as the president was largely expected and he has set the ball rolling straight away, calling for a renewed focus towards UAE’s all-round growth and for developing a well-diversified economy which is independent of oil revenues in the future. He has endorsed the UAE Centennial Plan 2071 which was launched last year. The Centennial Plan that extends over five decades and aims to lay down a clear roadmap for the nation to follow to enhance country’s reputation and its supremacy as a responsible and soft power. It intends to arm the youth of the country with the skills and knowledge needed to succeed and fulfil the country’s goal of becoming the best country in the world by 2071. The plan is based on four pillars: A future-focused government, excellent education, a diversified knowledge economy, and a happy and cohesive society. This vision coincides very closely with the Vision 2047 of India, which too has set high and ambitious goals for India to achieve in its quest to become a modern and prosperous nation by its centenary of independence in 2047and cement its place as a vishwa guru (global leader).

 

India and UAE share a very close relationship, built on a strong foundation of brotherhood, trade, energy security, security and people to people ties. The bonds of friendships grew stronger after elevation of MBZ as the de-facto ruler and election of Narendra Modi as India’s Prime Minister (PM), both which coincidently happened in 2014. Both leaders share a deep and common understanding of issues in the region, role that the two countries can play and most importantly, the scope and importance of bilateral ties.

 

The tone to the revitalised relationship was set by the historic visit of PM Modi to the UAE in August 2015, first visit by Indian PM after a gap of over 34 years, where the two leaders agreed to elevate the relationship to a comprehensive strategic partnership through strengthening of cooperation in all areas, including fields like counter-terrorism, joint defence production, and space cooperation. UAE reciprocated and Crown Prince MBZ visited India during February, 2016 and then again during January, 2017 as chief guest at the Republic Day celebrations. PM Modi revisited the UAE in February, 2018 for the World Government Summit where India was the guest of honour. In April 2019, the UAE President conferred on PM Modi the Order of Zayed, the highest decoration awarded to heads of foreign governments.