With the retail prices of wheat and wheat flour rising by 14-20% in the last one year, the government, on May 13, banned wheat exports to control rising domestic prices

 

India has exported wheat worth $177 million in March and $473 million in April even after the Russia-Ukraine conflict started in late February to help other countries overcome food crisis, sources said.

 

According to them, India exported wheat even at a time when about eight nations, including Ukraine, Belarus, Turkey, Egypt, Kazakhstan and Kuwait, had imposed wheat export restrictions.

 

'Still, after the conflict began on February 24, 2022, India has exported wheat worth $177 million and $473 million in March and April, respectively, despite facing challenges of low wheat production as a result of extreme heat wave that enveloped the northern part of the country that caused shrivelled grains and resultant drop in yield per acre,' one of the sources said.

 

With the retail prices of wheat and wheat flour rising by 14-20% in the last one year, the government, on May 13, banned wheat exports to control rising domestic prices and ensure food security of India, neighbouring nations and vulnerable countries.

 

The G7 nations had criticised the Indian government's decision to restrict the exports.

 

According to the DGFT (Directorate General of Foreign Trade) notification, wheat exports are allowed on the basis of permission granted by the Government of India to other countries to meet their food-security needs and based on the request of their governments.

 

Among the wheat exporting countries, India ranked 19th in 2020, 35th in 2019, 36th in 2018 and 2017, which shows that it has an insignificant share (0.47%) while seven countries (Russia, the U.S., Canada, France, Ukraine, Australia and Argentina) have the largest share in the overall quantity of wheat exports in the past five years, sources said.

 

'A negotiation-based approach instead of conflict would have prevented removal of nearly a quarter of wheat exports from Russia and Ukraine,' the source said, adding 'export restrictions have been a regular feature of major food producers which has adversely affected India too'.

 

Egypt and Turkey have also been importing significant quantity of wheat from India and have no locus standi for asking for open exports after having restricted them.

 

Besides wheat, a number of other food products have been restricted for exports and these include curbs on exporting vegetable oil by Argentina, Kazakhstan, Cameroon, and Kuwait.

 

'These have resulted in significant price rise and India has been at the receiving end,' the source said.

MUMBAI: With fast-paced urbanisation resulting in the replacement of local and indigenous varieties of fruits with exotic superfoods, efforts are being made to conserve the local ‘Badlapur jamun’ variety of the highly nutritious summer fruit. The fruit is found in and around Badlapur, a town 80km from Mumbai.

 

To bring value to the fast-depleting Badlapur jamun trees, a young professional, Aditya Gole (33), who was born and brought up in Badlapur, has sought a geographical indication (GI) tag for the fruit. The proposal, which was seconded by the Thane collectorate, was sent to the commerce ministry on Friday on behalf of the Jamun Parisamvardhan and Samuday Vikas Charitable Trust set up by Gole.

 

Gole said that as per ad hoc estimates the number of jamun trees in the region has reduced by nearly 60%-70% over the last few years due to rampant deforestation, which has also affected the production of the fruit. 'Our aim is to conserve and create awareness about this variety of jamun, which is not only nutritious but its health benefits too are well-founded.

 

Tribals from the Katkari and Thakar communities from the region are largely engaged in plucking and sale of the fruit, which typically is available for only one month between May and June,' said Gole, who is seeking funds from the government to carry out a plantation drive in Badlapur.

 

The jamun from the region is distinct from the one in other regions, mainly in its shape and size. The laterite soil in the region makes its rich in iron.

 

The seeds are used to make medicine which helps in regulating blood sugar. The leaves are used for treatment of jaundice, says the proposal. It is also said that Lord Ram subsisted on jamun fruit during his 14 years of exile. 'We are looking to increase the importance of the Badlapur jamun variety, which will not only help the tribals but also boost plantation of the local and indigenous trees,' said Gole.

 

He said that there is threat from jamun varieties from Gujarat and other parts of the state, which sell them under the Badlapur jamun tag.

 

The process of filing for a GI tag was initiated last year and took nearly nine months for collection of supporting papers and scientific analysis.

 

'The Badlapur jamun variety deserves a GI tag because of the distinct characters of the fruit from the region. Awarding GI tag to this fruit will also help the socio-economic condition of the tribal communities engaged in production of the fruit,' said advocate Ganesh Hingmire, who has filed the proposal on behalf of the trust set up by Gole.

India’s ban on wheat exports may cause wheat-dependent countries to shift to rice, with the resulting demand threatening to pressure rice prices upwards, a Department of Agriculture (DA) official said.

 

'One of the medium-term impacts is if they cannot access wheat, they might switch their demand to rice, and the problem is that if there’s going to be a rush to buy rice, that will lead to increase in demand and increase in prices,' Undersecretary Fermin D. Adriano said in an e-mail.

 

'Russia and Ukraine combined produce about 30% of all the wheat in the world. Any further tightening of the supply will definitely aggravate (the situation). There are quite a number of countries in the Middle East and sub-Saharan areas that are wheat-eating. A lot of things will worsen because of access, especially in wheat-eating countries,' according to Mr. Adriano, who is the undersecretary for Policy, Planning and Research.

 

On May 14, India announced that it was banning wheat exports due to the heat waves which have suppressed crop yields, sending domestic prices upwards.

 

Earlier in the year, India set a preliminary estimate for exports of as much as 12 million tons in 2022-2023.

 

'The country’s main (wheat import) source was Ukraine, and since the Russian invasion, our country’s biggest source is India,' Feedmix Specialist II, Inc. Vice-President Norberto O. Chingcuanco said in a Viber message.

 

'The export ban will definitely pressure global wheat prices. The use of wheat is not all replaceable by corn,' he added.

 

Samahang Industriya ng Agrikultura Executive Director Jayson H. Cainglet said that global wheat prices have increased by 20% due to the Ukraine crisis.

 

'The impact (of the ban) is already being felt because we haven’t found any alternative suppliers,' he said.

 

Cooking oils, cereals and meats hit all-time highs as a result of the Ukraine invasion, pointing to key food commodities becoming 30% more expensive year on year, Mr. Cainglet said, citing a report by the United Nations.

 

'We have been saying this for a long time. We cannot rely on the vagaries of the international market,' he added.

 

Mr. Adriano also said that the ban will affect the livestock industry, as inferior grades of wheat are primarily used to make animal feed. 

 

'About three million metric tons (MT) of wheat feed is being produced annually to fill the gap. If wheat feed supply is not enough, we would only be able to access it at a very high rate,' Mr. Adriano said.

 

'In other words, the animal feeds sector will be badly affected by it, from hogs, poultry, and aquaculture. If the animal inputs rise, it will affect the final output price. That’s the reason why we are saying there’s a looming food crisis in the second half of the year,' he added.

 

Mr. Cainglet said the way to mitigate the effects of the global crisis is to support local production, subsidize farm inputs and help farmers across the whole production chain.

 

'All countries will naturally protect their own domestic markets first. It is truly tragic that in the Philippines, we import first and lower tariffs,' he said.

 

'Up to their final days at the DA, they are still pushing the reduction of tariffs on pork, rice and corn; instead of doubling their efforts in helping local farmers cope with the increasing cost of production,' he added.

 

Economists said that the struggle to procure wheat heralds possible inflation pressures.

 

'With India being a major supplier of wheat, a ban on wheat exports would hurt the Philippines, which is already struggling to source the staple after the Ukraine war. The Philippines used to import wheat from Ukraine,' ING Bank N.V. Manila Senior Economist Nicholas Antonio T. Mapa said in an e-mail.

 

He said that energy shortages will also likely drive up the cost of basic commodities.

 

'Domestic inflation has moved well past its target and is threatening to surge to multi-year highs as food items related to wheat will edge higher. Meanwhile, substitutes for these food items will also become more pricey as Filipinos seek alternatives. This will crimp consumption and slow overall economic activity. With how constrained supply chains are at the moment, we could very well have to brace for faster inflation,' Mr. Mapa added.

 

UnionBank of the Philippines, Inc. Chief Economist Ruben Carlo O. Asuncion said Philippine firms might also look elsewhere for wheat supply.

 

'They can continue to import for their inputs and bear the higher cost that can compress their margins to keep their market share especially at a time when demand is recovering, which I think is what is happening to many producers because of these supply-chain challenges,' he said in an e-mail.

One of the leading producers of palm oil, Indonesia has decided to withdraw the ban on export of palm oil. The decision will be effective from May 23, and will be crucial for oil prices in India.

 

The Indonesian government in April this year had imposed a ban on export of crude palm oil and some of its derivatives.

 

The decision was taken after a review meeting of the export ban was held by the Indonesian Parliament Members on May 19. Indonesian MPs urged their Govt that since palm oil was a vital source of revenue for the island nation and the continuation of the export ban would prove counterproductive for the economy, therefore the ban should be lifted.

 

The decision of export ban by Indonesia impacted the edible oil prices in India, where prices soared in recent times.

 

In an estimate, the ban was causing six trillion Indonesian rupees loss to the local economy every month and the Vegetable Oil Industry Association of Indonesia had warned that the ban will result in shutting down of the palm oil industry.

 

Overall, the net loss due to the export ban was expected to reach 1.15 billion USD (17 trillion Indonesian Rupees).

 

Further, the storage capacity of the Indonesian ports were six million tonnes while the local production reached 5.68 million tonnes. Indonesia uses only 35% for consumption and the local traders are finding it difficult to store the palm oil. Many companies have even stopped the purchase of the palm fruit, which resulted in losses to the farmers as well.

 

Shankar Thakkar, president of the All India Edible Oil Traders’ Association, said that the decision of export ban was adversely impacting Indonesian economy and it was a right move by the Indonesian Govt.

 

'This would help in arresting the price rise of edible oil,' he said.

India on Friday told the World Trade Organisation (WTO) that it is unfair to blame its export restriction on wheat for the surge in global prices of the commodity, and asked member countries to stop 'naming and shaming' it.

 

At an informal meeting on agriculture, New Delhi said it restricted wheat exports for the sake of domestic food security, and asked the WTO members to analyse the exports data of the last four-five months to know who the main wheat exporters and contractors were.

 

'India said it is not fair to blame its export restriction on wheat for the surge in global prices to $450 per tonne from $325 per tonne,' said a Geneva-based official.

 

India has drawn flak for imposing an export restriction on wheat. Last week, the Directorate General of Foreign Trade issued a notification banning export of wheat with immediate effect to control price rise, but later eased the restriction to allow shipments of wheat consignments that were registered with the customs authority before the wheat export ban came into force on May 13.

 

At the WTO meeting, India said there is no shortage in global supply and that speculation by some traders is the real culprit behind the price increase, according to officials.

 

India has been criticised for the move despite exporting wheat worth $177 million in March and $473 million in April after the Russia-Ukraine conflict began in late February, even when at least eight countries--Egypt, Turkey, Kazakhstan, Kyrgyzstan, Kuwait, Kosovo, Ukraine and Belarus--imposed restrictions on wheat exports.

 

On Friday, New Delhi argued that traditionally it is not a big wheat exporter and ships out only 0.5 million tonnes annually although as an exception, it exported 7.5-8 million tonnes of wheat last year, which is still only 3-4% of the global market.

 

India has already expressed concern over hoarding of food grains which leads to unjustified increase in food prices, and said that food grains should not go the way of Covid vaccines, for which poor countries struggled even for initial doses while the rich nations had sufficient.

India has shipped 61,500 tonnes of wheat to Egypt, its largest overseas consignment since the country banned the staple export. At least a dozen countries have sent diplomatic requests for additional shipments, according to an official familiar with the situation who requested anonymity.

 

Following the ban, customs cleared 17,160 tonnes of wheat from the total shipment bound for Egypt. However, mandatory formalities, such as credit guarantees for the entire shipment, officially known as letters of credit, were secured before India's export ban went into effect, according to the official.

 

Mera International Private Ltd, the shipper of the consignment bound for Egypt, was promptly granted customs clearances for a portion of wheat that was loaded after the ban went into effect and left Gujarat's Kandla port on May 17.

 

On May 13, India, the world's second-largest wheat grower, said it was suspending all private wheat exports to manage its 'at-risk' food security while keeping a window open for overseas shipments on the specific request of a foreign government to 'meet their food-security needs.' Wheat can only be exported by traders who obtained credit guarantees on or before May 13.

 

The official quoted above stated that India would consider shipment requests from foreign governments facing a severe food crisis in order to fulfil its 'global commitments,' but declined to identify which countries had made diplomatic requests to the external affairs ministry for wheat imports. He stated that officials would meet to review the requests.

 

According to government estimates, India's output of the staple will fall for the first time in five years, from an estimated 111 million tonne forecast in February to 105 million, a drop of at least 5.7 percent.

 

The country had already contracted to export 4.5 million tonnes before the export ban went into effect, as the government sought to increase overseas sales to fill a global void in wheat supplies caused by the Russia-Ukraine war. According to the government's export notification, these sales will go through if formalities, such as letters of credit, have been issued.

 

In April 2022, the country's traders exported 1.4 million tonnes, capitalizing on high global demand and prices. India exported a record 7.85 million tonnes in the fiscal year ending March, up 275 percent from the previous year.

Varanasi: Fair Exports, a major exporter for Lulu Hyper chain, has started trials of sourcing mixed vegetables, including okra, round guard, jackfruit, long beans, varieties of mango like Banarasi Langda, Dussehri, and Papaya from Purvanchal (east Uttar Pradesh) and neighbouring regions of Bihar.

 

The procurement of these produces would be done by regional farm producer organisations (FPO) for export to Gulf countries like Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates etc.

 

Regional head of Agriculture and Processed Food Products Export Development Authority (APEDA), Dr CB Singh said that officials of Fair Export from Lulu group of Hypermarket reached here on Saturday for two days for starting trials of sourcing horticulture produce from Purvanchal region and nearby areas. Horticulture crops across the Purvanchal region were displayed in a wide range to the importers from Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates etc, he added.

 

APEDA had held a meet and farm visits with Fair exports officials here, he said adding, following trials of sourcing mix vegetables including okra, round guard, jackfruit, long beans, mango varieties and papaya they also discussed ways of procurement through regional FPOs. The group has decided to start trial shipment of mix vegetables followed by 2-3 consignment on week basis, added Singh.

 

APEDA is initiating these measures to promote the exports of the potential agricultural and horticulture produces and provide market linkage to the producers, he said. During the meeting and farm visits of the officials emphasis was on the potential of high-quality horticultural products, said Singh. He said that the series of events in past two days increased possibilities that markets like Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates will source the vast untapped potential of Purvanchal based products.

Indian basmati rice is getting a premium of $20-30 (Rs.1,550-2,330) per tonne from countries in the Middle East, as rumours spread that New Delhi may put a ban on the export of the commodity to help cool local inflation.

 

Exporters have received communication from buyers to urgently ship the aromatic, long-grain rice, trade sources said. A firm price trend in global markets has pushed up domestic basmati prices by up to 15% in the last two weeks. The export price of basmati rice, which was $1,200 per tonne in November last year when the crop began arriving, cooled slightly but increased again in the past two weeks to $1,350. Middle eastern buyers are paying the premium over this price.

 

'We are suddenly witnessing a huge demand from the Middle East,' said Gautam Miglani, who owns Haryana-based basmati rice exporter LRNK. 'The buyers are offering exporters a premium for urgent shipping of the grain. Rumours are going around that the government might put an export ban on basmati rice after it had banned wheat exports. This is fuelling the exports.'

 

 

India had put curbs on wheat exports earlier this month to control the food grain's price, which has been rising due to worries over global short supplies amid the Russia-Ukraine war. But traders said there had been no indication of India banning rice exports.

 

'We do not know from where these rumours of export ban are spreading,' said Vinod Kaul, executive director of the All India Rice Exporters Association.

 

Lower Production Last Year

'There has been no indication from the government on any such move. But buyers from the Gulf countries are placing good volumes of orders to fill up their own pipeline.'

 

India produces 8 million tonne (mt) of basmati rice during kharif. Last year, due to unseasonal rains during the harvesting period, the rice got damaged in certain pockets. According to industry estimates, the production of basmati rice last year was around 6.5-7 mt, falling short of the usual output.

 

Saudi Arabia has emerged as the major buyer, followed by Iran, Iraq and other countries from the region. India had exported 3.94 mt of basmati in FY22.

 

Competitive Prices

Miglani said apart from the rumours on a possible export ban, rising prices of basmati rice in Pakistan had also prompted buyers from the Middle East to divert a portion of their offtake to India.

 

The best variety of basmati rice in Pakistan is being sold at $1,450 per tonne, as compared to India's price of $1,350.

 

The price of the normal variety of basmati rice is $1,325 per tonne in Pakistan, compared with $1,200 in India.

 

In the domestic market, top quality basmati is now selling at Rs.250 per kg, against Rs.230 a fortnight ago, while the normal quality costs Rs.220, against Rs.190 earlier. Broken basmati rice is sold at Rs.140 per kg, against Rs.125 two weeks ago. 'Prices will rule high till the new crop comes in October-November,' said the chief executive of a leading FMCG firm, who did not want to be named.

India is yet to take a decision on joining trade partnership framework, but is keen to understand the ‘contours’ of the plan

Prime Minister Narendra Modi on Monday, May 23, 2022 arrived in Japan on a two-day visit to attend a summit of the Quad leaders which is aimed at further bolstering cooperation among the member nations of the influential grouping and discussing developments in the Indo-Pacific region.

 

'Landed in Tokyo. Will be taking part in various programmes during this visit including the Quad Summit, meeting fellow Quad leaders, interacting with Japanese business leaders and the vibrant Indian diaspora,' Mr. Modi tweeted in both Japanese and English.

 

'Ohayo, Tokyo! PM @narendramodi arrives to a warm welcome in Tokyo on what is his fifth visit to Japan in the last 8 years,' External Affairs Ministry Spokesperson Arindam Bagchi tweeted.

 

Besides Mr. Modi, the Quad summit in Tokyo on May 24 will be attended by U.S. President Joe Biden, Japanese Prime Minister Fumio Kishida and Australian Prime Minister-elect Anthony Albanese.

 

Prime Minister Narendra Modi will participate in U.S. President Joseph Biden’s unveiling of the 'Indo-Pacific Economic Framework' (IPEF) in Tokyo on Monday, a US initiative for trade partnerships in the region, sources confirmed. Mr. Modi’s attendance of the event is a significant step towards building economic ties amongst Quad countries in the Indo-Pacific, although officials were hesitant to bill the IPEF as a counter the 15-nation Regional Comprehensive Economic Partnership (RCEP) and the 17-nation Trans-Pacific Partnership (TPP) that China is a member of. 

 

Briefing the media ahead of the event, U.S. NSA Jake Sullivan said that the IPEF would have a 'very wide-ranging membership', adding, significantly, that the programme is 'designed to put workers at the center — American workers,' with a focus on the digital economy, clean energy transition, infrastructure and resilient supply chains. 

 

India has not taken a decision on joining the framework, but is keen to understand the 'contours' of the American plan said an official, confirming that Indian delegates would join the launch of negotiations expected on Monday as well. On Saturday, Foreign Secretary Vinay Kwatra said that 'discussions and the conversations are still going on' on the IPEF draft.

 

After landing in Tokyo on Monday, PM Modi is expected to meet Japanese business leaders in one-on-one interactions including heads of NEC corporation, Uniqlo garments, Suzuki motors, and the SoftBank Group, attend the IPEF event with Mr. Biden and other leaders, also attend a business roundtable. On Tuesday he will meet with US President Joseph Biden, Japanese PM Fumio Kishida and the just-elected Australian PM Anthony Albanese for the Quad summit after which he will hold bilateral talks with each of them.

 

During the Quad summit on Tuesday officials have said the Quad focus is on areas of convergence like trade, infrastructure, climate change and critical technologies, it is clear that divisions over the war in Ukraine, food security, the vaccine initiative and a number of other issues including the US push to bring Taiwan back as an observer at the World Health Assembly this week will also come up at the meeting.

 

'The second in-person Quad Leaders’ Summit will provide an opportunity for the leaders of the four Quad countries to review the progress of Quad initiatives. We will also exchange views about developments in the Indo-Pacific region and global issues of mutual interest,' said Prime Minister Modi in a departure statement. 

 

Mr. Modi’s reference to 'developments in the Indo-Pacific' region indicates India’s consistent policy that it would not include comments on Russia in its diplomatic engagements with other countries. The position was underlined during the Quad leaders’ last interaction, a virtual meeting in March, where the joint statement did not reflect sharp criticism of Russia that marked the statements made by the other three leaders. 

 

In the past week, India has also run up against the US and Japan at G-7 meetings, as well as at the UN Security Council over its decision to ban wheat exports amidst global shortages of Ukrainian wheat.

 

In a press briefing on Sunday, US National Security Advisor Jake Sullivan said that Mr. Biden will continue to discuss the 'impacts of Russia’s brutal invasion of Ukraine on a wider set of concerns in the world, including this food security concern,' in his conversations with PM Modi in Tokyo. 

 

However, Foreign Secretary Vinay Kwatra said on Saturday that 'there is a full understanding and appreciation of [India’s] policy [on Ukraine] in the world, including among [India’s] main partners', and reiterated India’s food security needs are 'paramount', when asked about the US’s call to reverse the government’s wheat export ban.

 

Mr. Kwatra said that the Quad will organise a special session on the sidelines of the World Health Assembly (WHA) on May 24, where the four countries will jointly tackle issues of disinformation during the pandemic and boosting vaccine confidence. The grouping is also expected to discuss and possibly review its Quad Vaccine Initiative project to disburse US-developed and funded, India-made distributed by Japan and Australia amongst Indo-Pacific countries that has been stuck due to what Mr. Sullivan called 'regulatory issues' with India. The first Quad interaction last year had committed to distributing one billion of the vaccines, made at Hyderabad-based Biological-E by the end of 2022, but have made no headway on the project yet.

 

Another issue the Quad is divided over whether to support Taiwan’s request to be included as an observer at the WHA, something China opposes. While the US, Australia and Japan have backed the Taiwanese request, India has made no statement thus far, and MEA officials did not confirm whether India would endorse it.

WASHINGTON: The Indian mango is back on the American table. After what was presented more than a decade ago as a (Indian) mangoes-for- (American) motorcycles deal slipped and spluttered amid bureaucratic blockades, the king of fruits commonly called 'aam' has returned to US markets following an agreement that will allow Indian inspectors to oversee quality issues. In return, New Delhi will allow import of cherries, alfalfa hay and pork from the US.

 

Four Indian mango varieties- Banganapalli, Kesar, Alphonso, and Himsagar- were laid out for feasting at India House on Thursday as the two side celebrated a breakthrough that could boost trade by billions of dollars at a time the global economy is struggling. 'Mangoes are a symbol of the strong bonds of friendship between India and the US. This (deal) is a reflection of the robustness and maturity in the India-US partnership. As friends, we are able to sit across, discuss and resolve challenges that come our way.' India's ambassador to the US Taranjit Sandhu said as US and Indian officials involved in the breakthrough shared the fruits of their labour with guests.

 

Indeed, it has been a long and slippery slope for the Indian mango, and Sandhu has seen it all during his four stints in US. When the first shipment of 150 boxes of Indian mangoes arrived at the JFK airport in April 2007 following an agreement made on the sidelines of the nuclear deal- a consignment described by The New York Times as 'probably the most eagerly anticipated fruit delivery ever'- it was expected to pave way a flood of fruits, particularly mangoes, from India, one of the world's largest fruit producers.

 

Instead, the US bureaucracy doubled down on fears of pests and bugs, insisting on elaborate US-certified irradiation processes in India that pushed the price of mangoes to $36 a dozen and above. In fact, according to one report, a listing on Amazon one time quoted price of $155.97 including shipping for a box of six alphonsos, about $26 per mango.

 

But it was more than pests that bugged the deal from the get-go. What New Delhi is up against is a powerful Latin-American lobby protecting its near monopoly (90 per cent) of mango imports to the US. India's share: 0.18 per cent. In fact, all the foreign members of the National Mango Board, the body responsible for marketing mangoes in the United States, are said to be from Latin-America. Lat-Am mangoes also have the advantage of easy on-road shipping into the US.

 

However, there is a matchless advantage New Delhi has. India is the original home of mangoes (hence its scientific name is Mangifera Indica). Even American mangoes like Haden and Keitt are derived from an Indian ancestor sent to the US from Pune in 1898. And then there is a small matter of taste and flavor that led an American fruit expert to once remark. 'India is to mangoes as Bordeaux is to wine.' It may soon be time to pop the champagne...or churn the mango lassi.