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.

India and Egypt plan to push bilateral trade to $12 billion within the next five years. This was discussed during a meeting between Prime Minister Narendra Modi and the India unit of the Egyptian Cabinet led by its Prime Minister Mostafa Madbouly in Cairo on Saturday, officials said.

 

The volume of trade between the two countries amounts to around $7 billion currently.

 

Indian foreign direct investment (FDI) in Egypt is around $4 billion. In the past six months alone, Indian companies have invested around $170 million in the African Arab country. Egypt is hoping that India increases its presence in the Suez Canal Economic Zone.

 

During Saturday's meeting, Modi had mentioned that India is an important source of foreign investments to Egypt, and that the two countries have been increasing cooperation in the field of renewable energy, which reflects their joint commitment to protect environment.

 

Egypt is an important partner to India, Modi had stressed, affirming that cooperation between the two countries have increased despite Covid and global tensions.

 

In the meeting, Madbouli said Egypt looks forward to consolidating the strategic relations with India with regard to exchanging strategic goods, especially with regard to making India into one of the main sources of wheat exports to Egypt. Modi returned to India in the early hours of Monday.

 

India's top exported items to Egypt during April-December 2022 were meat (13.5%), ferro-alloys (5.2%), rice (2.6%) and flat rolled products of iron (2.2%). India's top imported items from Egypt during the same period were petroleum oil (39%), petroleum gas (19.3 %), chemical fertilizers (12.1%), ammonia (6.6%) and phosphoric acid (4.7%), according to a factsheet of the Indian Embassy in Cairo.

 

Over 450 Indian companies are registered in Egypt, of which around 50 are active in various sectors. Major Indian investments in Egypt include TCI Sanmar (with a value of $1.5 billion), Alexandria Carbon Black, Kirloskar, Dabur India, Flex P Films, SCIB Paints, Godrej, Mahindra, and Monginis. Indian companies are present in a range of sectors including apparel, agriculture, chemicals, energy, automobiles, and retail.

Acting on the long pending demand of cashew producers for protecting the Goan cashew and its unique identity, the State government on Friday announced grant of Geographical Indication (GI) tag for ‘Goan Cashew’ (nuts and apple).

 

The Director of Industries, Trade and Commerce Swetika Sachan informed about the imminent granting of a GI tag for ‘Goan Cashew’.

 

She said that the prestigious recognition, made possible through the completion of necessary formalities, will officially brand the renowned local product.

 

Sachan further said that the GI tag is expected to significantly enhance the reputation and marketability of Goan cashews, providing a tremendous boost to the cashew industry as a whole.

 

The Director of Industries was speaking during the One District One Product (ODOP) Sampark programme in Panjim.

 

'In line with the shared objective of highlighting Goa's diverse range of handicrafts, art, and cultural heritage, the State government, in collaboration with Invest India, is embarking on a pioneering project —the establishment of a ‘Unity Mall’,' Sachan said. 

 

This 'dynamic retail space' will serve as a comprehensive destination for visitors to immerse themselves in the essence of Goa, she added. 

 

The ‘Unity Mall’ will not only feature 'One District One Product' offerings but also showcase an extensive range of local handicrafts and provide exhibition spaces for state emporiums.

 

'To further expand the scope of local product identification, the Government of Goa, in partnership with Invest India, is considering the implementation of the 'One Taluka One Product' scheme. This initiative aims to identify and promote specific agricultural produce and handicrafts from each Taluka in the State,' she said. 

 

'By diversifying the range of products associated with each taluka, the government seeks to unlock the untapped potential of local industries and foster sustainable economic growth across the region,' the senior official informed.

Every June, French shipping major CMA CGM resumes its fortnightly Bijagos Shuttle container service (for three to four months), connecting by sea the small West African tropical country of Guinea-Bissau with Spain’s Algeciras (about 3,500 km).

 

So what? One may ask in India. This dedicated sea container service exports huge quantities of cashew from Guinea-Bissau to India and Vietnam. In 2022, Guinea-Bissau exported 2,31,000 tonnes of raw cashew nuts.

 

CMA-CGM said the dedicated service to Asia will be run from Bissau port to Algeciras on a fortnightly frequency from mid-June 2023 to the end of the cashew season.

 

The Bijagos Shuttle service will be fully operated by CMA CGM by deploying two vessels of 1,700 TEU (twenty-foot equivalent unit). The first vessel will be LION to leave Bissau on June 24. A substantial stock of 40’ containers is available in Bissau, the line said.

 

This unique product (service) is during the seasonal export of cashews from Bissau to India and Vietnam. The line said it has dedicated hubs in Mundra, Port Klang and Singapore.

 

Once the smaller shuttle service reaches Algeciras, the containers with cashews will be transferred to mainline ships (large vessels offering direct service to various global destinations) in the westbound EPIC Europe Pakistan India Consortium (EPIC) service to reach the ports of Jebel Ali, Khalifa Port; Karachi; Nhava Sheva and Mundra.

 

Other major shipping lines like Maersk and MSC also provide various transportation modes, including multimodal, to export cashew from Guinea-Bissau to India.

 

A businessline report in November 2022 said cashew is by far the most important cash crop in Guinea-Bissau, representing 60 per cent of the country’s exports. It is the main source of income in rural areas. The estimated area under cashew cultivation is 223,000 hectares with an annual production of 230,000 tonnes, making Guinea-Bissau the fifth largest producer in the world. Most cashew nuts produced in Guinea-Bissau are exported to India for processing.

 

The report said Beta Group, the Kerala-based food company, which owns the Nut King brand, will set up an industrial unit in the West African country of Guinea-Bissau for the cashew business. It then announced $100 million in that country over five years.

 

Guinea Bissau exported 2,31,000 tonnes of raw cashew in 2022 and of this around 75 per cent to India and the balance to Vietnam, says Rajmohan Pillai, Chairman of the Thiruvanthapuram-based Beta Group, owners of Nut King brand.

 

According to India-Guinea Bissau Bilateral Relations document released by the Ministry of Economic Affairs in 2021, cashew crop accounts for more than 90 per cent of export earnings of Guinea-Bissau and almost the entire cashew crop (around 98 per cent) is exported to India for processing.

India has said the existing global trade rules do not adequately address market failures such as food hoarding and market speculation that drive up food prices and inflation during crises.

 

At a meeting of the Committee on Agriculture last week, India agreed with the 44-member African Group, which proposed to provide flexibilities to developing countries facing food insecurity crises to subsidise farmers beyond the minimal amount of subsidies allowed at the World Trade Organization (WTO), called ‘de minimis’ in trade parlance.

 

'India agreed that providing some flexibility to developing countries to exceed de minimis limits could be useful during a food insecurity crisis,' said a Geneva-based official, who did not wish to be identified. The de minimis level for India and developing countries is 10% of value of food production and 5% for developed countries.

 

'India also reiterated its stance on reducing aggregate measurement support beyond de minimis – which, at present, only 32 members are entitled to – before addressing other types of support,' said the official.

 

India, China and South Africa, along with five others, emphasised the urgency of starting text-based negotiations on the need to find a permanent solution on public stockholding for food security as soon as possible due to the limited time remaining before MC13, which is to be held next year.

 

The proposal, now supported by two-thirds of WTO members, should serve as the basis for negotiation, they argued and asked those opposing the proposal to refrain from repeating old questions. As per the proposal, a permanent solution for public stockholding should account for inflation and also be based on a recent reference price instead of an old one, which is based on 1986-88 prices.

 

India’s representative cited the country’s successful efforts to eliminate hunger domestically and provide food assistance to other countries such as Sri Lanka during the food crisis, as per the official.

Before chief minister Yogi Adityanath flags off the first consignment of mango and green chilli packed at Kashi's Integrated Pack House (IPH) for export to Gulf countries, the figures of export of agriculture and horticulture products reveal that east UP has emerged as a major hub of agri export.

 

Since the time IPH became functional after inauguration by PM Narendra Modi on March 24, Varanasi's export has risen from 4 metric tonnes in 2020-21 to 561 MT in 2022-23, ensuring growth of 420%. Lucknow, which had export figure of 111.47 MT in 2020-21 had exported 703.30 MT of agri products in 2022-23 and its growth percentage was 6%.

 

Busy in preparations for the flagging off ceremony at IPH in Karkhiyao area on Sunday, the Agricultural and Processed Food Products Export Development Authority (APEDA) deputy general manager CB Singh said, 'After IPH's inauguration by the PM, process to operationalise it has been intensified in Varanasi in order to achieve the goal of developing east UP as a hub of export of agriculture and horticulture products.'

 

He said, 'With flagging off by the CM, the IPH Varanasi packed first consignments of mango and green chilli will leave for markets of Gulf, including Dubai and Doha via air and sea routes, respectively.'

Recalling the journey of ma king East UP region a hub of agri export, Singh said, 'Till 2019, there was nil export of agri cargo from Varanasi airport and negligible export from Lucknow airport. Now, flights are fully loaded with agri air cargo at Varanasi and Lucknow.'

 

Highlighting the trend of growth in export of agri products from international airports of UP, he said, 'In 2019-20 Lucknow had exported 99 MT of green vegetables and mangos while export from Varanasi was nil. In 2020-21 Lucknow exported 111.47 MT while only four MT vegetables were exportedfrom Varanasi. I n 2021-22 export of these agri and horticulture produces from Lucknow was 661.50 MT and Varanasi exported 157 MT. In 2022-23 Lucknow’s export was recorded as 703.30 MT while Varanasi’s export figures jumped to 561 MT.'

'The growth percentage of agri export from Varanasi airport in 2022-23 was 420% compared to 2021-22 figures while this growth at Lucknow airport was 6%', said Singh adding that between April and Jun this year Varanasi’s export figure was 120.5 MT while Lucknow has exported 169.9 MT of agri products. He also referred the measures initiated to achieve the goal of developing East UP as an export hub by making Varanasi its centre. The IPH established here fulfils requirements of international standard, which i s a must, especially for exporting agri products to European Union, Japan and Korea.

In a relief to small food business operators, the Food Safety and Standards Authority of India (FSSAI) has agreed to tone down its recent order that called for mandatory testing of products manufactured by all food business operators (FBOs).

 

Responding to the concerns expressed by activists and small FBOs, the FSSAI said it examines options to provide minimal parameters for testing in the respective product category.

 

'Keeping in view a large number of representations received from stakeholders, especially the micro, small, and medium enterprises (MSME) sector, that expressed concerns such as testing costs, we are exploring options to provide minimal parameters to be tested without compromising the food safety,' Ganesh Vishweshwar Bhat, Technical Officer (Regulatory Compliance), FSSAI, said.

 

In a response sent to Alliance for Sustainable & Holistic Agriculture (ASHA), he said the tweak in the order would ease the burden of FBOs, especially regarding the testing fees.

 

A recent FSSAI order directed all the FBOs to get tests done on their products and upload the results every six months. The ASHA lodged a strong protest with the authority early this month, alleging that the move would cause a severe financial burden on small FBOs, who don’t have the financial wherewithal to conform to the order.

 

Stating that it’s the government’s responsibility to test the food products, he said the order puts the onus on small FBOs. It pointed out that small FBOs (with less than a turnover of Rs 12 lakhs) are only required to register with the FSSAI.  (Small operators have a production ceiling of 100 litres or kilograms a day).

 

The FSSAI, however, said that the order provisions align with FSSAI’s mandate to ensure the availability of safe and wholesome food for human consumption.

 

'In order to ensure food safety by the manufacturers, testing of food products at least once in six months by the licensed food manufacturers has been made mandatory since August 5, 2011,' the FSSAI official said in his letter.

 

'One of the conditions that a licensed manufacturer must meet is to ensure testing of relevant chemical and/or microbiological contaminants in food products in accordance with these regulations as frequently as required,' he said.

 

These tests will are t be conducted at the NABL-accredited FSSAI-notified laboratories at least once in six months.

 

He said the FSSAI’s January 2023 order directed the licensed players to follow the regulations and upload test reports on the Food Safety Compliance System portal.

 

Activists’ response

The FSSAI’s response, however, didn’t enthuse the activists much. 'It appears that FSSAI has agreed to have a relook at the provisions made in its order. We continue to believe that there is no scientific basis for this order, even if they reduce the parameters for testing,' an ASHA constituent member said.

 

India is in negotiations with Brazil to resolve a sugar dispute at the World Trade Organisation (WTO) and the commerce ministry is coordinating with concerned departments for the same, government sources said. India is also following a similar process for other complainants of the sugar dispute at the Geneva-based WTO, they said.

 

In 2019, Brazil, Australia and Guatemala dragged India into the WTO's dispute settlement mechanism alleging that New Delhi's sugar subsidies to farmers are inconsistent with global trade rules.

 

The Department of Commerce is coordinating with all the concerned line ministries to arrive at possible alternatives, one of the sources, who is aware of the development, said.

 

The exercise assumes significance as a WTO dispute settlement panel on December 14, 2021, ruled that India's support measures for the sugar sector are inconsistent with the global trade norms.

 

In January 2022, India appealed against the panel's ruling at the WTO's appellate body, which is the final authority on such trade disputes.

 

Brazil is the largest producer and exporter of sugar in the world. India is the world's second-largest sugar producer after Brazil.

 

Brazil, Australia and Guatemala, which are members of the WTO, had complained that India's support measures to sugarcane producers exceed the de minimis level of 10 per cent of the total value of sugarcane production, which according to them was inconsistent with the WTO's Agreement on Agriculture.

 

They had also flagged India's alleged export subsidies, subsidies under the production assistance and buffer stock schemes, and the marketing and transportation scheme.

 

According to WTO rules, a WTO member or members can file a case in the Geneva-based multilateral body if they feel that a particular trade measure is against the norms of the WTO.

 

Bilateral consultation is the first step to resolve a dispute. If both sides are not able to resolve the matter through consultation, either can approach the establishment of a dispute settlement panel. The panel's ruling or report can be challenged at the World Trade Organization's Appellate Body.

 

Interestingly, the appellate body of the WTO is not functioning because of differences among member countries to appoint members in this body. Several disputes are already pending with the appellate body. The US has been blocking the appointment of the members.

 

The bilateral trade between India and Brazil increased to USD 16.6 billion in 2022-23 as against USD 12.2 billion in 2021-22. Trade gap is in the favour of India.

 

India has exported 37.75 lakh tonnes of sugar till March 9 of the 2022-23 ongoing marketing year ending September out of 60 lakh tonnes allowed by the government, trade body All India Sugar Trade Association (AISTA) has said in March. Mills have exported 37,75,684 tonnes of sugar between October 1, 2022, and March 9 of the 2022-23 marketing year.

 

The sugar marketing year runs from October to September. The government has allowed the export of 60 lakh tonnes for the 2022-23 marketing year. The industry is demanding that the government should increase the export quota.

 

WTO member countries can resolve disputes outside the dispute settlement mechanism and later inform the multi-lateral body about the same.

 

Recently, India and the US have agreed to end their six major trade disputes at the WTO.

Geographical Indication (GI) tagged juicy and aromatic Banarasi Langra mango will soon fly directly from the newly built pack house in Varanasi to Sharjah. Uttar Pradesh Chief Minister Yogi Adityanath will flag off a perishable food product prepared according to international standards and send it abroad for the first time.

The government is making efforts to turn farmer entrepreneurs into exporters by eliminating middlemen from their businesses. It will increase farmers’ income. In order to achieve this, the Agricultural and Processed Food Products Export Development Authority (APEDA) is working nonstop.

There will be single window clearance for export from pack houses. Here, perishable food items will be prepared in accordance with global standards. The pack house is accredited by APEDA for export as per international standards.

Uttar Pradesh Chief Minister Yogi Adityanath will give a big gift to the ‘annadata’ farmers of Purvanchal on June 26. Vegetables and fruits of Purvanchal will now be exported directly from the pack house in Varanasi. Perishable food products will be prepared in the pack house according to international standards.

Pack house has been completed in about 4461 square feet area at a cost of Rs 15.78 crore. Here, farmer entrepreneurs will also be given training to prepare products according to the demands of the international market. This will be the third integrated pack house in Uttar Pradesh after Saharanpur and Lucknow.

APEDA’s Deputy General Manager Dr CB Singh stated here on Saturday that the CM will flag off the first shipment of four to five metric tonnes of Banarasi Langra mangoes and other products from Varanasi airport to Sharjah.

Dr CB Singh, Deputy General Manager, APEDA, stated that in order to produce a product of an international standard, fruits and vegetables must go through a number of processes in the integrated pack house. Because of this, their flavour, freshness, and other qualities remain unaltered.

India and UAE on Friday signed Mutual Recognition Arrangement (MRA) for authorised economic operators (AEOs) of both countries, the CBIC said. The AEO programme enables Customs administration to identify safe and compliant exporters and importers and to provide them better facilitation. Under MRA, Customs authorities recognise AEOs of both countries, which in turn helps expedite customs clearances.

 

'In pursuance of greater trade facilitation & ease of doing business, India & UAE signed the Mutual Recognition Arrangement for Authorised Economic Operators of both countries today, on sidelines of the 141st/142nd sessions of WCO Customs Co-operation Council meeting, in Brussels,' the Central Board of Indirect Taxes and Customs (CBIC) tweeted.

 

Earlier in September 2021, India and the US had signed a MRA AEO. The Customs authorities of both countries have already evaluated each other's AEO programme and is working to quickly implement the reciprocal arrangement for authorised economic operators.