British Prime Minister Rishi Sunak has reaffirmed his commitment to a 'truly ambitious' free trade agreement (FTA) with India and indicated his plans to visit New Delhi for the G20 Summit in September.

 

Hosting a special reception to celebrate India Global Forum’s UK-India Week 2023 in the garden of 10 Downing Street in London, Sunak said Prime Minister Narendra Modi and he agrees that there is a huge potential to step up bilateral trade ties.

 

The 43-year-old British Indian leader interacted with business leaders and celebrities, including boxing champion Mary Kom, musicians Shankar Mahadevan and Zakir Hussain, Bollywood stars Sonam Kapoor and Vivek Oberoi, on Wednesday evening as part of what he dubbed as a 'big moment' in the bilateral calendar and the start of an Indian summer for the UK.

 

'Prime Minister Modiji and I agree there’s huge potential here. We’re making great progress together on the 2030 Roadmap and we want to strike a truly ambitious trade deal that benefits both our nations, bringing tremendous opportunities to businesses and consumers, both in India and here at home,' said Sunak.

 

'It’s not just UK-India Week, but a whole Indian summer. And I don’t just mean the hot weather we’re having, I mean that over the next few weeks, the eyes of the world will be on India. There’s the G20 in New Delhi, I can’t wait to be there,' he said.

 

India and the UK recently concluded the tenth round of FTA negotiations and an 11th round is set to begin in the next few weeks.

 

At the UK-India Week reception, the British Prime Minister was joined by his wife Akshata Murty and joked that the garden party was also in honour of his mother-in-law Sudha Murty, who is visiting from India.

 

'There is so much to celebrate. The links between our two countries are closer than ever. Just look at the Coronation of His Majesty the King. On that most historic day, people of Indian heritage were at the heart of proceedings, presenting the Coronation regalia and as part of the delegation of faith leaders,' he said.

 

'It shows the depth of the bonds we share, the living bridge between our two nations, the thriving business links, and the flow of ideas and investments, all stronger than ever. But of course, we want to do more,' he said.

 

'Here we are, in Downing Street, with a Prime Minister of Indian heritage, with all of you at the top of your game, leaders in your fields showing that anything is possible. So, let’s keep raising our sights and let’s keep scoring boundaries as we build this partnership,' added Sunak, using a cricketing metaphor as he also referenced the cricket World Cup to be hosted by India later this year as the 'biggest event of all'.

 

The India Global Forum’s (IGF) fifth annual UK-India Week, which runs until Friday, brings together ministers, business leaders and policymakers to deliberate on the key sectors of focus within the bilateral relationship.

 

'We are all here, from such diverse backgrounds, experiences and journeys, yet what unites us is our passion and contribution to enhancing what I describe as the winning partnership between the UK and India,' said IGF founder Manoj Ladwa.

Union Minister of Commerce and Industry and Consumer Affairs, Food & Public Distribution and Textiles, Shri Piyush Goyal said that the Government is committed to fostering a conducive business environment and accelerating growth in Production Linked Incentive (PLI) sectors. While delivering the keynote address at a Workshop on 'PLI Schemes' organized by the Department for Promotion of Industry and Internal Trade (DPIIT), Ministry of Commerce and Industry yesterday, the Minister encouraged industry’s feedback and collaborative engagement to shape the policies, procedures and effectiveness of the PLI scheme.

 

Shri Goyal emphasized on the importance of the industry's concentration on producing high-quality products that cater to both the industry's requirements and the consumers' needs. He also urged PLI beneficiaries to take up any procedural challenges/ issues with respective implementing Ministry/ Department so that positive reforms can be brought about and PLI scheme can be made more efficient and effective. The Minister further added that the Government officials of the implementing Ministry/ Department must hold regular consultation and roundtables with their respective PLI beneficiary so that the issues may be resolved promptly.

 

Shri Piyush Goyal urged all stakeholders to work together on creating an environment that fosters growth, innovation, and competitiveness in our industries. The objective of the Workshop was aimed to bring all the key stakeholders on a single platform and create a sense of ownership, so that they could exchange their knowledge and experiences to ensure an effective implementation of PLI Schemes under 14 key sectors. The workshop was organised In line with the vision of the Prime Minister, Shri Narendra Modi, to make India a global hub for manufacturing.

 

The Workshop witnessed participation from 10 implementing Central Departments, Companies/ PLI beneficiaries under 14 key sectors, various Project Management Agencies (PMAs) viz. IFCI, SIDBI, MECON, IREDA & SECI, select Industry Associations (CII, FICCI, ASSOCHAM & PHDCCI) & relevant Export Promotion Councils namely FIEO, EEPC & TEPC.

 

Attendees included a group of distinguished companies such as Wistron, Foxconn, Samsung, Dell, Wipro GE, Dr. Reddy’s, Tata Motors, Mahindra & Mahindra, Nokia Solutions, ITC, & Dabur, JSW, and Reliance among others. Their presence ensured a diverse range of perspectives and fostered an environment of knowledge-sharing and networking. Key executives from these companies, along with Government officials, were actively involved in a collaborative open discussion, interactive session, and presentations throughout the workshop.

 

The workshop provided a unique forum for industry leaders, experts, and Government officials to engage in insightful discussion and exchange valuable insights on the impact of PLI Schemes. The event aimed to facilitate a comprehensive understanding of the schemes, their objectives, and their potential to revolutionize the manufacturing sector.

 

The workshop agenda covered various aspects related to PLI Schemes, including their scope, eligibility criteria, incentives, and the roadmap for successful implementation including grievance redressal mechanism provided by concerned central Departments & PMAs. Participants engaged in productive discussions that focused on leveraging these schemes to enhance competitiveness, boost production, and foster innovation. Key topics included factors/ policy nuances contributing to Schemes’ success, enhancing domestic value addition, and capitalizing on emerging technologies.

 

The workshop culminated in a collective commitment from all attendees to actively participate in the PLI Schemes and leverage the available incentives to their fullest potential.

 

Overall achievement of PLI Schemes was discussed during the workshop. Actual investment of Rs. 62,500 crore have been realized (till March’23) which has resulted in incremental production/ sales of over Rs. 6.75 lakh crore and employment generation of around 3,25,000. Exports boosted by Rs. 2.56 lakh crore till FY 2022-23. Incentive amount of around Rs. 2,900 crore disbursed in FY 2022-23 under PLI Schemes.

 

PLI Schemes have played a significant role in promoting domestic value addition (DVA) in various sectors. It has led to increased value addition in the electronics sector and in smartphone manufacturing, 23% and 20% respectively, from negligible in 2014-15. Up to 80% DVA has been reported in various products under Pharmaceuticals. Import substitution of 60% has been achieved in the Telecom sector and India has become almost self–reliant in several networking products. DVA up to 50% is envisaged under Automobiles & Auto component sectors.

Assam has launched a Rs 250 crore agricultural fund to boost agribusiness. In a bid to promote small and medium-sized units in the agriculture sector, multiple stakeholders, including the World Bank, have come together to create a fund worth Rs 250 crore in Assam, according to officials. The venture capital fund, Caspian Impact Investment Adviser, has partnered with the Assam Rural Infrastructure and Agricultural Services (ARIAS) Society to establish the Assam Agribusiness Investment Fund (AAIF).

 

The AAIF, with a corpus of Rs 250 crore, aims to provide a unique sector-specific fund that focuses on enhancing agricultural productivity and generating employment opportunities in the state. Its primary objective is to invest in small and medium enterprises operating in the agribusiness and allied sectors to foster accelerated growth. ARIAS has been designated as the anchor investor for the AAIF, while Caspian Equity will act as the fund manager.

 

Saurabh Johri, Executive Director and CEO of Caspian Impact Investment Adviser, expressed his delight at collaborating with ARIAS and their shared mission to catalyze the economic development of Assam's rural communities. By leveraging their investment expertise in conjunction with ARIAS' extensive knowledge and experience, the aim is to make a sustainable impact and empower individuals to thrive.

 

The fund will be led by Ravi Narasimham, Investment Director at Caspian, as the company looks forward to forging a strong partnership with ARIAS, with the ultimate goal of creating a prosperous and empowered rural community. Ashish Kumar Bhutani, Chairman of ARIAS Society, highlighted the uniqueness of the AAIF as a state-led initiative that seeks to address critical gaps in value chain finance within the agriculture and allied sectors while also increasing farmers' income.

 

The chairman expressed optimism that the fund would contribute to supporting high-growth and high-impact agribusiness SMEs, fostering vibrant and resilient agri-food value chains in Assam. Toshiaki Ono, Finance Sector Specialist at the World Bank Group, emphasized the crucial role of agribusiness SMEs in the transformation of the agriculture sector. However, he noted that external finance, particularly long-term and patient capital for their growth, remains limited.

 

Ono expressed confidence that the newly established fund would support these SMEs, facilitating their development and contributing to the establishment of vibrant and resilient agri-food value chains in Assam.

The FSSAI has extended the last date for filing annual returns for the fiscal 2022-23. The food authority has issued a direction in this regard stating that the last date for submission of annual returns, as per condition of licence, has been extended till June 30, 2023.  

 

The FSSAI has also reiterated that only online annual returns submitted through FoSCoS will be accepted.  

 

Meanwhile, welcoming the move, Confederation of All India Traders (CAIT) has said that the move would help traders.  

 

Shankar Thakkar, state general secretary, CAIT Maharashtra, has said that the traders would be relieved from fear of losing the FSSAI licence due to extension of the date, as pendency of annual returns would result into cancellation of the licence. And consequently, the packaging with old FSSAI licence would have been wasted.  

 

'Therefore, we had demanded that the food regulator to extend the date for filing of annual returns,' said Thakkar.  

 

It is pertinent to note that food manufacturers, repackers, re-labellers, packers and producers, needed to file annual returns to FSSAI through D1 form by May 31, 2023.  

 

According to CAIT, many traders could not file the annual returns and they appealed to the FSSAI for an extension.  

 

Subsequently, FSSAI extended the dates for the fiscal 2022-23 until June 30.

 

The Government has decided to release Tur from the national buffer in a calibrated and targeted manner till imported stocks arrive in the Indian market. The Department of Consumer Affairs, Ministry of Consumer Affairs, Food & Public Distribution has directed National Agricultural Cooperative Marketing Federation (NAFED) and National Cooperative Consumers Federation (NCCF) to dispose of Tur through online auction among eligible millers to augment the available stocks for milling into Tur Dal for the consumers.

 

The quantities being auctioned and the frequency will be calibrated on the basis of the assessed impact of the disposal on the availability of Tur to consumers at affordable prices.

 

It may be recalled that the Government had, on 2nd June, 2023, imposed stock limits on Tur and Urad by invoking the Essential Commodities Act, 1955 in order to prevent hoarding and unscrupulous speculation and also to improve affordability to the consumers. Under this order, stock limits have been prescribed for Tur and Urad until 31st October 2023 for all states and UTs.

 

Stock limits applicable to each of the pulses individually are 200 MT for wholesalers; 5 MT for retailers; 5 MT at each retail outlet and 200 MT at depot for big chain retailers; last 3 months of production or 25% of annual installed capacity, whichever is higher, for the millers. The order has also made it mandatory for these entities to declare the stock position on the portal (https://fcainfoweb.nic.in/psp) of the Department.

 

The implementation of stock limit order and status of stock disclosure on the portal are continuously monitored by the Department of Consumers Affairs and the State Governments. In this regard, data on stocks held by various entities in warehouses of Central Warehousing Corporation (CWC) and State Warehousing Corporations (SWCs), stocks pledged by market players with banks etc. have been crosschecked against the quantities declared on the stock disclosure portal.

 

The State Governments are continuously monitoring the prices in their respective States and are verifying the stock positions of stock-holding entities in order to take strict action on those who violated the stock limits order. 

Basmati growers and traders are likely to reap a rich harvest over the coming Kharif marketing season 2023-24, as the prices of all aromatic long grained varieties of rice witnessed an increase in domestic and international market.

 

As per reports from rice exporters following a demand in the international market, the prices of Basmati rice have reached to above Rs.90,776 per metric tonne (MT) from Rs.83,068 of the last year.

 

Following a jump in the rice export from the country, the price of basmati rice in the domestic market has reached above Rs.80 to Rs.120 a kg against Rs.70 to Rs.100 of the last year.

 

Figures released by the Agricultural and Processed Food Products Export Development Authority (APEDA) revealed that in April, 2023-24 India has exported 4.24 lakh MT basmati rice against 3.19 lakh MT of the last year, thus India’s total rice export has reached to Rs.8,204 crore including Rs.3,855 crore of Basmati, in April 2023-24 against Rs.6,144 crore during the same period in 2022-23.

 

The rise in export has helped traders earn handsome profits as prices in the international market have also witnessed an increase of around Rs.7,000 per MT. Traders are predicting that the prices may rise further following the increasing demand of Indian rice in the international market.

 

There is also a surge in the export and prices of the parmal or non-basmati rice as India has exported a total of 14.2 lakh MT non-basmati rice this year against 13.52 lakh MT last year. The prices of the non-basmati rice also reached an all-time high of Rs.30,576 per MT in April this year, up from Rs.29,265 per MT last year.

 

All India Rice Exporters Association (AIREA) former president Vijay Setia termed it a great sign in the interest of farmers and traders saying, 'Yes the prices of both basmati and non-basmati rice have increased following a surge in demand in the international market. Even India’s Basmati rice export has increased and there is a strong possibility that the farmers will get a good price for their produce this year.'

 

Setia, however, demanded the government to lift levy from the procurement of basmati paddy in mandis of Haryana as the move will boost the competition and the farmers will benefit from it.

 

Since farmers of Haryana and Punjab are the biggest producer of basmati rice and contribute around 80% of the country’s total produce,the benefit from rising prices will benefit them most.

 

Traders said the basmati prices are likely to remain above Rs.3,000 per quintal again this year, thus helping the farmers to reap a good harvest for the second consecutive year.

 

Even the arrival of super early sowing varieties of paddy has already started in mandis of Haryana’s Karnal as farmers from Uttar Pradesh have started harvesting of early sown paddy. 'PUSA 1509 is being sold for around Rs.3,000 a quintal and there is a strong possibility that the price may increase further with the arrival set to pick up in the next couple of days,' Ahrtia Association Karnal president Rajneesh Chaudhary.

 

Wheat export slides

 

On the other hand, India’s wheat export has declined drastically, falling to a paltry 1,631 MTs in April 2023-24 against 14.72 lakh MTs for the corresponding period last year. The same comes amid a drop in the wheat production in the country and corresponding ride in demand.

 

According to AIREA, at 130.5 MT, India is the second largest producer of rice in the world after China. The country produces around 9 MT of paddy from around 17 lakh hectares of land, with around 7 lakh hectares of area being under Basmati cultivation. Haryana’s share in total basmati production remains around 42%, followed by Punjab’s 36% and Uttar Pradesh’s 17%.

The decision to remove 20 per cent retaliatory customs duty on imported American apples will have a 'zero' impact on Indian farmers as the government has sufficient policy space to support growers if there is any implication of the move, a senior government official said on Monday.

 

Additional Secretary in the Department of Commerce Peeyush Kumar said that India is not giving anything 'extra' by removing this duty and it was not that 'we have opened a floodgate' for American apples.

 

In fact, it is a win-win deal for India as it restores market access for domestic steel and aluminium products in the American market, which was impacted due to the imposition of high duties by the US in 2018.

 

The decision to remove these additional duties was part of an agreement reached between India and the US, during the recent visit of Prime Minister Narendra Modi to Washington and New York. India and the US have also agreed to terminate six trade disputes at the World Trade Organisation (WTO).

 

These remarks assume significance as Congress leader Jairam Ramesh in a tweet alleged that Prime Minister Narendra Modi 'wants Apple to invest (not investigate) in India. But does he even care for the apple growers of Himachal Pradesh? He has avenged his election loss in Himachal by slashing import duties on American apples. Never before has India seen a more petty PM!'

 

India will remove these duties on eight US products including chickpeas, lentils and apples, which were imposed in 2019 in response to America's measure to increase tariffs on certain steel and aluminium products.

 

India imposed retaliatory duties on 28 US products. America imposed an import duty of 25 per cent on steel products and 10 per cent on certain aluminium products on grounds of national security.

 

'There would be zero impact on Indian farmers due to the duty removal' because the import duty on apples still is at 50 per cent, Kumar told PTI.

 

Now India is also getting greater market access for its steel and aluminium products in the US, 'so it was not that, we are giving something extra,' he said.

 

Import of apples from the US decreased sharply from USD 145 million (127,908 tonnes) in 2018-19 to only USD 5.27 million (4,486 tonnes) in 2022-23. It indicates that the market share of the US apples was taken by other countries due to imposition of additional retaliatory duty on American apples, as the imports from countries other than the US increased from USD 160 million in 2018-19 to USD 290 million in 2022-23.

 

The US's import share in the import market segment was taken by countries like Turkey, Chile, New Zealand and Italy.

 

After the removal of additional duties on the US apples -- as a part of the resolution of a WTO dispute which would result in the restoration of market access for Indian steel and aluminum exports to the US -- would compete on level-playing field with other countries, while it does not result any additional negative impact on domestic apple producers.

 

Earlier the commerce ministry in May imposed MIP (minimum import price) of Rs 50 per kg on apples, except for Bhutan.

 

This MIP will be applicable on apples from the US as well as other countries (excluding Bhutan), which would prevent flooding and protect domestic growers from predatory pricing and poor-quality/ cheap imports.

 

'While Indian apple growers will continue to gain from the MFN duty and the MIP that was imposed for all countries except Bhutan, removal of additional duties for the US will result in competition in imports in the premium market segment ensuring better quality at better prices for consumers,' another official said.

 

There is no reduction on MFN (most favoured nation) duty on apples, which is still applicable on all imported apples including on the US at 50 per cent.

Commerce and industry minister Piyush Goyal on Tuesday chaired the first cross- sectoral workshop on the 14 production-linked incentive (PLI) schemes to take feedback on the ambitious programme. Issues related to low disbursement and fund utilisation were also taken up, sources said.

 

Representatives from Dell, Foxconn, Nokia, sienna helathcare, biocon, Cipla, Tata motors, Mahindra & Mahindra, Samsung, ITC, Dabur and Tata Steel, among others attended the meeting besides Niti Aayog and various line ministries.

 

'Companies raised policy related issues and technical problems which the various departments clarified. Various line ministries were asked to resolve the issues of the beneficiaries of the scheme. The government will take them up at the appropriate levels,' said an official.

 

More than 150 people attended the meeting and there were five beneficiaries from each of the PLI scheme sectors.

 

The government took feedback from industry and other government departments on the challenges being faced by PLI beneficiaries.

 

'The next meeting is likely next quarter, in September end,' the official added.

 

While large scale electronics, telecom, pharmaceuticals, food processing, white goods, and auto and auto components have picked up, High Efficiency Solar PV Modules, Advance Chemistry Cell (ACC) Battery, Textile Products, and Specialty steel are lagging behind.

 

As per the Department for Promotion of Industry and Internal Trade (DPIIT), the government has paid Rs 2,874 crore to beneficiaries in eight sectors.

 

The five project-monitoring agencies (PMAs) -- Industrial Finance Corporation of India (IFCI), Small Industries Development Bank of India (Sidbi), Metallurgical and Engineering Consultants (MECON), Indian Renewable Energy Development Agency (IREDA), and Solar Energy Corporation of India (SECI) and various industry associations and export promotion councils also participated.

 

The Centre has allocated Rs 1.97 lakh crore for the 14 sectors, including telecom, textile, automobile, white goods, and pharmaceutical drugs.

India’s horticulture output is likely to have reached a record 350.87 million tonnes (mt) in the current crop year (July 2022-June 2023) as production of fruits, vegetables, spices and plantation crops increased significantly.

 

However, among the key essential items, onion and tomato production has been estimated a tad lower but potato output has been pegged higher. The output of all the horticulture products was 347.18 mt in 2021-22.

 

Releasing the first advance estimates of area and production for 2022-23 and final estimates of 2021-22, Union Agriculture Ministry on Monday said data have been compiled on the basis of information received from States and other government agencies.

 

Agriculture Minister Narendra Singh Tomar credited the hard work of farmers and expertise of agriculture scientists as well as the Centre’s policies for the record production.

 

According to data from the Agriculture Ministry, the area under horticulture has been rising and reached 28.28 million hectares (mh) in 2022-23 from 28.04 mh last year.

 

Upward revision

Experts said the gap is marginal in the first estimate compared with last year’s final estimate and there could be an upward revision in production in subsequent updates.

 

Onion production is estimated to be 31.1 mt this year, down from 31.69 mt in 2021-22, while tomato production is likely to be 20.62 mt against 20.69 mt. Potato output is expected to be higher at 59.74 mt compared with 56.18 mt last year.

 

Total production of vegetables has been pegged at 212.53 mt compared with 209.14 mt. Fruits production is seen at 107.75 mt this year as against 107.51 mt in 2021-22.

As the export of fresh fruits, vegetables and cereals from East UP has started booming with a record growth of 420% in 2022-23, the exporters as well as Agricultural and Processed Food Products Export Development Authority (APEDA) find that many challenges, especially of transportation, should be tackled on priority to maintain the tempo as the region has great potential for further increase in it.

'International flight is limited with freight capacity of 3 metric ton to 4 MT per day. This freight capacity is being fully utilised now hence, further increase in demand as well as production for exports will start posing serious challenges', APEDA deputy general manager CB Singh told TOI on the possibilities of further increase in export of agri products, especially green vegetable and fruits, from LBSI airport of Varanasi.

Only one Sharjah bound direct international flight operates per day from here. Only this flight gives direct connectivity to Gulf market while for London and other international markets the Farmer Producers Organisations (FPO) and exporters from east UP region are bound to opt transshipment in which domestic flights take freight to Delhi or Mumbai for further transportation.

Singh admitted, 'Currently less number of airlines have transshipment bond for international cargo. Airlines like Indigo and Air India Express have taken the transshipment bond while other airlines like Air India, Vistara etc have not applied for transshipment bond.'

 

To send the shipments to the Gulf and EU via sea route taking horticulture and agriculture products of east UP region to Mumbai port is a compulsion. The inland transportation cost from Varanasi or Lucknow, which are landlocked territory, is very high as compared to the transportation cost borne by FPOs and exporters sending from centres like Nasik, said Singh adding, due the same UP exporters are getting very tough competition.

 

The issue of transportation has emerged as a major cause of concern for the FPOs, exporters as well as APEDA because the East UP, which had nil export of agriculture and horticulture products from LBSI airport till year 2019 had exported only four MT of vegetables in 2020. But, in 2021-22 the export grew to 157 MT and in 2022-23 it jumped to 561 MT, recording a growth of 420%. In four years only around 20 FPOs got them registered as exporters and eight of them are exporting actively. Cultivators are also switching fast on export oriented farming and the production is increasing accordingly.

Basic infrastructure for supply chain- Integrated Pack House that was formally inaugurated by Prime Minister Narendra Modi on March 24, is also available now, said Singh, mentioning that these developments are going to give a mega boost to exports due to which now the focus is on tackling the same challenges on priority. Chief Minister Yogi Adityanath flagged off the consignments of mango and green chilly packed at this IPH on Monday.