India's trade minister will hold talks in the UK on a free trade deal with Britain and meet ministers from the European Free Trade Association from July 10 to 11, the Ministry of Commerce and Industry said on Sunday.

 

Trade minister Piyush Goyal will meet with his UK counterpart, Kemi Badenoch, as well as representatives from British industry, the ministry said in a statement.

 

The talks offer an opportunity to discuss the main priorities of a free trade agreement 'with a focus on addressing trade barriers, promoting investments, and fostering greater cooperation in areas such as technology, innovation, and intellectual property rights,' the statement said.

 

Differences have emerged between India and the UK on some key tariff lines and investment protection rules, including disagreement over concessions on duties levied by India on car and liquor imports.

 

Goyal will also meet ministers and officials from the European Free Trade Association, which comprises Switzerland, Norway, Iceland, and Liechtenstein, to assess progress toward reaching a Trade and Economic Partnership Agreement with them.

During the recent visit of Indian Prime Minister Narendra Modi to the United States of America, major announcements related to resolution on key trade issues were made by the US and it was agreed upon to terminate six WTO disputes related to retaliatory tariffs.

 

During the visit of Indian PM, United States Trade Representative Katherine Tai announced that the United States and the Republic of India have agreed to terminate six outstanding disputes at the World Trade Organization and India also agreed to remove retaliatory tariffs, which it had imposed in response to the U.S. Section 232 national security measures on steel and aluminium, on certain U.S. products, including chickpeas, lentils, almonds, walnuts, apples, boric acid, and diagnostic reagents.

 

'These tariff cuts will restore and expand market opportunities for U.S. agricultural producers and manufacturers.  The resolution also maintains the integrity of the U.S. Section 232 measures,' reads the statement issued by the Office of the US Trade Representative.

 

The statement added that the agreement represents the culmination of intensified bilateral engagement over the last two years, including through the U.S.-India Trade Policy Forum, to deepen economic and trade ties and 'As a result of our work, U.S. agricultural producers and manufacturers will now enjoy renewed access to a critical global market.'

 

The six World Trade Organization disputes that will be terminated include three disputes initiated by India and three disputes initiated by the United States.

 

United States – Countervailing Measures on Certain Hot-Rolled Carbon Steel Flat Products from India (DS436);

 

India – Certain Measures Relating to Solar Cells and Solar Modules (DS456);

 

United States – Certain Measures Relating to the Renewable Energy Sector (DS510);

 

India – Export Related Measures (DS541);

 

United States – Certain Measures on Steel and Aluminium Products (DS547); and

 

India – Additional Duties on Certain Products from the United States (DS585).

 

Meanwhile, Tai has also written to the Indian Commerce and Industries Minister Piyush Goyal, asking for withdrawal of retaliatory tariffs, as agreed.

 

The letter says that India shall rescind the additional duties on U.S. origin products on the tariff lines imposed in response to U.S. measures of March 8, 2018, under Section 232 of the Trade Expansion Act of 1962, as amended (Section 232) and revert to the current applied most-favoured-nation (MFN) rate for these tariff lines.

 

India shall rescind these duties within 90 days of the receipt of this letter. India shall notify the United States upon rescinding the additional duties and shall provide a copy of the relevant legal instruments.

The Agricultural and Processed Food Products Export Development Authority (APEDA) is keen on expanding the Lal Bahadur Shastri International Airport in Varanasi at the earliest. C.B. Singh, Deputy General Manager of APEDA, highlighted the increasing movement of perishable cargo from this airport.

 

In the 2022-23 financial year, Varanasi airport handled 561 metric tons of perishable cargo, marking a significant growth of 420% in exports of fresh fruits, vegetables, and cereals from eastern Uttar Pradesh (UP).

 

During the first quarter of the current financial year (April-June), the Varanasi airport handled 160 metric tons of agricultural cargo, compared to 46 metric tons in the same period of the previous year, reflecting a remarkable increase of 248%. The cargo space of the Varanasi-Sharjah route is consistently reaching full capacity daily.

 

This flight provides direct connectivity to the Gulf market, while for London and other international destinations, Farmer Producers Organizations (FPOs) and exporters from the eastern UP region have to opt for trans-shipment, utilizing domestic flights to transport their freight to Delhi or Mumbai for further transportation.

 

Singh pointed out that currently, only a few airlines have trans-shipment bonds for international cargo, such as Indigo and Air India Express. However, other major airlines like Air India and Vistara have not yet applied for trans-shipment bonds. To sustain the momentum of agricultural exports from the eastern UP region, it is crucial to establish additional trans-shipment bonds with more airlines. Furthermore, increasing the frequency of international flights and operating cargo flights are essential steps.

 

The growth in perishable cargo and the rising demand for agricultural exports from eastern UP highlight the need for infrastructure development. The expansion of the Varanasi airport would enhance the region's capacity to handle larger volumes of cargo and facilitate direct exports to international markets. This development will not only benefit farmers and exporters but also contribute to the economic growth of the region.

 

APEDA remains committed to supporting the agricultural sector and promoting the export of high-quality agricultural products from India. By focusing on infrastructure improvements and collaboration with airlines, APEDA aims to create a conducive environment for agricultural exports, ensuring the steady growth of the industry and boosting the economy as a whole.

With regard to the upcoming World Food India-2023, an investor roundtable interaction was co-chaired by the Secretary, Department for Promotion of Industry and Internal Trade (DPIIT), and the Secretary, Ministry of Food Processing Industries, with agri-food processing companies in New Delhi, recently. The roundtable witnessed participation from the leading global and Indian food processing companies. During the interaction, the future plans of the participating companies and their prospects of partnerships with MoFPI for the WFI-2023, being organised from November 3-5, 2023, at Pragati Maidan, New Delhi, were discussed.

 

In his special address, Secretary, DPIIT, emphasised on the importance of manufacturing sector in the growing Indian GDP. He also mentioned the favourable agro-climatic zones in India which are not just suitable for production of a wide variety of agri-commodities like cereals, pulses, fruits and vegetables but also to process them in large quantities.

 

In her keynote address, Secretary, MoFPI, mentioned about the growth and vast opportunities present in the food processing sector. She added that the ministry is organising the second edition of the highly anticipated World Food India event, envisioning an even larger scale compared to the previous 2017 edition. The Secretary extended a heartfelt invitation to all companies to participate in the event with great enthusiasm.

 

During the roundtable, the participating companies expressed their optimistic outlook on the Indian market and lauded the various initiatives taken by the Government of India to improve the business environment, including the favourable policies such as the Production Linked Incentive Scheme and the flagship Pradhan Mantri Kisan Sampada Yojana initiated by MoFPI. The companies also expressed their interest in participating in World Food India-2023 and affirmed their willingness to sponsor the event and showcase their products and technologies through dedicated stall spaces. Many companies also showed keen interest on partnering with MoFPI for the sessions that are being planned as part of the event.

 

In his closing remarks, Additional Secretary, MoFPI, mentioned that the Investment Facilitation Cell (Invest India) and event partner FICCI will stay in touch with the companies to firm up the participation details. EY is roped in as the knowledge partner for the event.

The government is going to cut the tender submission period for the import of rice in a bid to ensure food security in the country.

 

The Ministry of Food has sent a proposal to the Cabinet Committee on Economic Affairs to shorten the period from existing 42 days to 15 days.

 

According to sources in the ministry, 500,000 metric tons of rice will be procured from international sources in the current financial year by reducing the import period. A proposal in this regard from the Ministry of Food will be presented in the next meeting of the Cabinet Committee on Economic Affairs for approval.

 

To ensure food security in the country, the government has set a target to collect 24 lakh 61 thousand metric tons of rice in the current financial year 2023-2024. Out of this, 19 lakh 61 thousand metric tons of rice will be purchased from domestic sources and 5 lakh metric tons of rice from international sources. Among international sources, there is a plan to import 3 lakh metric tons of rice from the Government-to-Government (G-to-G) level and 2 lakh metric tons through international tenders.

Bangladesh is all set to settle trade with India in Rupee from Tuesday, a move to cut their reliance on the American currency, which was involved in nearly 90 per cent of global forex transactions in 2022, The Daily Star reported.

 

Bangladesh Bank and the Indian High Commission are expected to announce the news regarding the Indian currency at an event at Le Meridien Hotel in Dhaka tomorrow.

 

The central bank governor and the Indian high commissioner will also join, a Bangladesh Bank (BB) official said.

 

The BB has already given permission to three banks - Sonali Bank, Eastern Bank and State Bank of India (SBI) in Bangladesh - to open nostro accounts with their counterparts in the neighbouring country.

 

The nostro account is an account that a bank holds with a foreign bank in the currency of the country where the funds are held. It is used to facilitate foreign exchange and international trade transactions involving foreign currencies.

 

This new move will open the letters of credit in the rupee to source a portion of the products from the neighbouring country and thus cutting the use of the US dollar to some extent, according to The Daily Star.

 

The government has toughened import rules due to the shortage of American greenback, driven by higher import bills, with a view to stopping further depletion of the foreign currency reserve, which has fallen by nearly 30 per cent from a year ago.

 

The private commercial bank, Eastern Bank and the country office of SBI have already opened nostro accounts with Indian ICICI Bank and SBI, the BB official said, adding that state-run Sonali Bank will open the account in the quickest possible time.

 

Both the BB and the Reserve Bank of India (the central bank of India) have given permission to the two Indian banks to start settling the bilateral trade in the Indian rupee (INR), he added.

 

The new arrangement will allow Bangladesh to perform foreign trade with India to the tune of USD 2 billion, equivalent to its current annual export receipts from the country. Last month, BB Governor Abdur Rouf Talukder said that if the trades through the unofficial channel are added then the imports can go up to USD 27 billion, as per The Daily Star.

 

As per plans, ICICI Bank and SBI will settle imports with Bangladesh in the rupee. And the amount will be deposited with the Bangladeshi banks' nostro accounts with the two.

 

In the second phase, the Bangladeshi banks will settle the import payments on behalf of the local importers by using the rupee deposited with the counterparts.

 

The dominance of the US Dollar is declining in the last few decades. At the ASEAN finance ministers and central banks meeting in Indonesia in March, policymakers also discussed the idea of cutting their reliance on the USD, the Japanese yen and the euro and 'moving to settlements in local currencies' instead.

 

The dollar accounted for more than 70 per cent of global reserves at the turn of the century. The share declined to 59 per cent in 2011 and 58 per cent last year, International Monetary Fund data showed, reported The Daily Star.

India and Tanzania have agreed on a roadmap to further boost their time-tested ties by identifying new areas of cooperation in sectors like trade, investment, agriculture, defence and education, the Foreign Ministers of the two countries said.

 

External Affairs Minister S. Jaishankar on Saturday met Tanzania’s Minister of Foreign Affairs and East African Cooperation Stergomena Tax at the 10th India-Tanzania Joint Commission Meeting n Dar es Salaam.

 

Mr. Jaishankar said the two sides had a very productive round of the Joint Commission.

 

'This gave us an opportunity to do a stocktaking of our relationship to discuss what are the new areas that we need to move forward. Also, to agree on how to deepen our cooperation in the areas that we have been working on for many years,' he said.

 

Among the domains that the two sides looked at was their economic cooperation, and how to increase trade and investment. The two sides also discussed how to promote stronger collaboration in ICT (Information and Communications Technology) and technology.

 

'We spoke about expanding training and exchanges within us. And we looked at areas like health, agriculture, defence and education as new domains to go between India and Tanzania,' he told reporters.

 

He said India and Tanzania have a very strong and time-tested relationship which is based on solidarity and camaraderie which comes from a shared struggle for independence during the colonial times.

 

'And from the very beginning of our independence, we’ve always had a very good understanding. Today, that is reflected in a very robust economic engagement. We have a trade of almost six and a half billion dollars annually,' Mr. Jaishankar said.

 

He said India has significant Indian investment in Tanzania, which is the country’s key trade partner in Africa.

 

Talking about their bilateral development partnership, Mr. Jaishankar said India is proud of the water partnership between the two nations.

 

'Water Partnership which involves soft loans of almost a billion dollars, which when the projects are completed, will bring safe drinking water to 8 million Tanzanians. I think it will cover 28 towns in this country. And for us, it’s a great privilege to be associated with such a major transformational development initiative,' he said.

 

Mr. Jaishankar said during his visit, the two sides agreed on a new flagship project — the establishment of a campus of the Indian Institute of Technology — that would underline the deep friendship between the two nations.

 

'...for the first time ever, the IIT is going abroad and we are very very pleased that this should take place in Zanzibar, because in many ways, Zanzibar is a meeting point of African and Indian cultures,' he said.

 

So overall, it has been a very productive visit, he said.

 

'I would like to end by emphasising that Prime Minister [Narendra] Modi believes that the deep solidarity between India and Africa must be expressed in very practical terms in a way in which we share experiences, we share capabilities, we contribute to each other’s understanding of the world.

 

'And today, this joint commission meeting and the roadmap that we have put forward is a way of doing it because Prime Minister Modi deeply believes that partnerships are made by recognising the priorities of partners,' he said.

 

Mr. Tax said the two sides noted with satisfaction the milestones in various areas including politics, trade and investment, energy, education, water, health, ICT and defence and agreed to reinforce cooperation in these areas.

 

The decision to establish the first Indian Institute of Technology in Zanzibar will contribute to the efforts of Tanzania in enhancing capacity in technology and innovation.

 

Tanzania remains committed to continue partnering and cooperating with India, she said.

 

During his stay here, Mr. Jaishankar also called on Tanzanian President Samia Hassan of Tanzania and discussed bilateral ties in defence and security, maritime cooperation and capacity building.

 

He also conveyed the personal greetings of President Droupadi Murmu and Prime Minister Modi to President Samia.

 

The Food and Agriculture Organization of the United Nations (FAO) released its latest Cereal Supply and Demand Brief, predicting a record-breaking global cereal production for the year 2023/24. The report indicates that cereal production is projected to reach 2,819 million tonnes, representing a 1.1 percent increase from the previous year.

 

The improved forecast primarily stems from a positive outlook for global wheat production, which is now estimated at 783.3 million tonnes. Several countries, including Canada, Kazakhstan, and Turkiye, are expected to contribute to this boost in production. However, it is worth noting that global wheat production is still anticipated to be 2.3 percent lower than the previous season's output.

 

The forecast also reveals a growth of 2.9 percent in global coarse grain output, expected to reach 1,512 million tonnes in 2023/24 compared to 2022. Additionally, world rice production is predicted to rise by 1.2 percent, reaching 523.7 million tonnes, surpassing the reduced level of the previous year. The upcoming season is expected to witness a 0.9 percent expansion in world cereal utilization, reaching 2,805 million tonnes. This increase is primarily driven by the anticipated higher consumption of coarse grains, especially maize, for animal feed.

 

FAO has revised its forecast for global cereal stocks at the end of the 2023/24 seasons, estimating them to be 878 million tonnes, a 2.3 percent increase from the previous season. With this level of stocks, the global cereal stocks-to-use ratio is expected to remain steady at 30.6 percent, indicating comfortable supply prospects for the new season.

 

Regarding world trade in cereals, FAO's forecast for 2023/24 suggests a potential 0.9 percent contraction compared to 2022/23, with wheat volumes expected to decline from the record levels previously witnessed. The global situation is not without challenges, as high food prices, economic downturns, conflicts, droughts, and the looming threat of El Niño weather patterns in various regions continue to worsen food security concerns. The latest Crop Prospects and Food Situation report, a quarterly publication by FAO's Global Information and Early Warning System (GIEWS), reveals that a total of 45 countries require external assistance for food.

 

The report highlights that high domestic food prices, which deviate from the FAO Food Price Index, are contributing to alarming levels of hunger in most of these 45 countries. Among them, 33 are located in Africa, 9 in Asia, and Haiti, Ukraine, and Venezuela.

 

Although global cereal production is projected to expand by 1.1 percent in 2023 compared to the previous year, the report warns of a contraction in the group of 44 Low-Income Food-Deficit Countries (LIFDCs). This contraction will increase their import needs to meet domestic food requirements.

 

The quarterly report by FAO not only offers detailed information about food insecurity and price trends on the ground in affected countries but also provides an in-depth assessment of regional production and trade prospects worldwide.

Commerce and industry minister Piyush Goyal will visit the UK on July 10-11 to take stock of the negotiations for a free trade agreement (FTA) and review the progress of the talks for a similar pact with the European Free Trade Association (EFTA), the government said Sunday.

 

'The minister’s visit will not only be focused on the ongoing FTA negotiations between India and the UK but he will also be meeting with ministers from the EFTA member countries to discuss the progress of the Trade and Economic Partnership Agreement (TEPA) with EFTA,' the commerce and industry ministry said in a statement.

 

As per the statement, the visit comes at a crucial juncture, as both India and the UK are committed to expanding their economic ties and exploring avenues for enhanced bilateral trade.

 

'With the FTA negotiations gaining momentum, the visit aims to further propel the discussions and pave the way for a comprehensive and mutually beneficial agreement that would drive economic growth and strengthen ties between the two nations,' it said.

 

During the visit, the minister will engage in high-level meetings with his UK counterparts, including the Secretary of State for International Trade, as well as representatives from various sectors and industries.

 

'These meetings will provide an opportunity to discuss the key priorities and objectives of the FTA negotiations, with a focus on addressing trade barriers, promoting investments, and fostering greater cooperation in areas such as technology, innovation, and intellectual property rights,' it said.

 

India and the UK have completed ten rounds of talks and the pact will cover 26 policy areas. Investment is being negotiated as a separate agreement but both would get simultaneously concluded.

 

The bilateral trade between the countries increased to $20.36 billion in FY23 from $17.5 billion in FY22.

 

Goyal will also meet with ministers and officials from the EFTA member countries- Switzerland, Norway, Iceland, and Liechtenstein- to assess the progress made in the ongoing negotiations of the

TEPA which aims to enhance trade and economic cooperation, fostering an environment conducive to increased investments, reduced trade barriers, and greater market access, according to the statement.

India is working on an advance cargo information system on the lines of the advance passenger information system put in place by the US after 9/11 that will allow immediate customs clearance of imports with scrutiny limited to a risk-based assessment of shipments.

 

Such a system would allow customs authorities to know beforehand the contents and arrival time of cargo. The information can then be used to pre-clear the consignments or keep them for further checks based on the contents and the information thrown up by the risk-assessment system.

 

Various agencies that are involved in vetting import cargo such as plant quarantine can also carry out their checks on the basis of data.

 

A pilot to test pre-arrival cargo data exchange is already on with the Maldives and discussions are now on with countries including South Korea to expand this system. New Delhi has already inked an agreement for the pre-arrival exchange of country-of-origin certificates with South Korea.

 

'Pre-arrival data exchange is being examined,' a senior government official told ET.

 

Such an exchange could become part of future trade agreement talks.

 

The Central Board of Indirect Taxes and Customs is working on the initiative as part of customs facilitation to further improve the ease of doing business in the country. Pre-arrival data exchange could form part of a future revamp of the country's customs framework to boost trade facilitation.

 

Such a system is expected to not just aid expeditious identification and tracking of suspicious goods but also come in handy in verification of country-of-origin certificates with countries with whom India has a trade agreement.