The State wise details of Farmer Producer Organizations(FPOs) registered through various agencies including those under the Central Sector Scheme(CSS) for Formation and Promotion of 10,000 FPOs are at Annexure – I. Further under the new FPO scheme, 421 FPOs have been registered by different Implementing Agencies(IAs) in Aspirational Districts as on 09.03.2022. The details are at Annexure-II.

 

Under the said Central Sector Scheme (CSS), an amount of Rs. 14.05 Crores has been transferred to 352 FPOs towards matching equity grant. The state-wise details are enclosed at Annexure - III. Furthermore, the FPO Management Cost is also disbursed by the Department to the concerned Implementing Agencies for onward transferring to the respective FPOs. So far, a total of Rs. 108.82 Crores has been released as FPO Management Cost under 10,000 FPOs scheme.

 

As per operational guidelines of the aforesaid Central Sector Schemes (CSS), women farmers' participation as shareholders of FPOs is preferred and in the Board of Directors (BoD) and Governing Body (GB), as the case may be, there shall be adequate representation of women farmer member(s) and there should be minimum one woman member.

The Ministry of Food Processing Industries is implementing the Pradhan Mantri Kisan Sampada Yojana (PMKSY) for augmenting processing/preservation capacity, creating off-farm employment, leveraging domestic investment and increasing value addition to the economy.  Recently, the Production Linked Incentive (PLI) Scheme has been launched for creating global food champions through incentivizing investment in the food processing sector and creating employment. The Pradhan Mantri-Formalisation of Micro Enterprises (PM-FME) scheme is also being implemented since 2020-21 which aims at upgrading/ formalising 2 lakh micro informal units and creation of 9 lakh employment. The government has permitted 100% foreign direct investment(FDI) under the automatic route.

 

The total FDI received in the food processing sector since April 2014 till December 2021 is US$ 5.15 billion. Also through 582 completed projects under various component schemes of PMKSY, Rs. 8562.92 crore of investment has been leveraged as on 31.01.2022.

 

Food processing sector is a labour intensive sector. As per the Annual Survey of Industries (ASI) 2018-19, food processing was ranked 1st in total persons engaged in manufacturing sector. 

India and Australia are likely to sign an interim free trade agreement (FTA) on 21 March, which may allow easier market access for Indian pharmaceutical products, besides duty concessions on gems and jewellery and textiles, said three people aware of the development.

 

The mini trade pact may also offer some concessions in the fields of education, tourism, health and renewable energy. Australia is likely to get tariff cuts on premium wines that do not compete with domestic winemakers. “The negotiations are at an advanced stage and the sides are hopeful of finalizing them by 21 March. It will also make way for a comprehensive free trade pact, the negotiations for which will begin after inking the early-harvest agreement,' one of the two people, a government official, said seeking anonymity.

 

Indian pharma and medical products, which have received approval from authorities of other developed nations such as the US, UK, the EU, Canada and Japan, are likely to get regulatory approval within 90 days. The terms of agreement are similar to the just- concluded deal with the UAE.

 

Mint reported on India pressing for preferential market access for drugs and pharma products during the FTA talks with Australia and the possibility of an interim deal being finalized in a few weeks.

 

India is negotiating a mutual recognition agreement (MRA) for pharmaceutical products as a part of the pact. New Delhi had sought faster and easier clearance for generic pharma products, that are approved by developed countries. “We are hoping the pharma sector will get easier access under the early-harvest agreement with Australia. It is one of the biggest hurdles for the pharma sector,' said an industry executive, who also did not want to be named. Australia accounts for 1.63% of New Delhi’s total outbound pharmaceutical shipments.

 

Queries emailed to spokespersons of the Australian High Commission and the commerce and industry ministry did not elicit a response till press time.

 

“New Delhi may be willing to lower tariffs on Australian wines over a certain monetary threshold, as it will not affect low-cost Indian wines,' said a second executive seeking anonymity. India currently imposes 150% tariff on alcoholic beverages. Australia is the sixth-largest wine producer and the fourth largest wine exporter in the world. The Indian market is nascent, but growing.

India’s foreign trade is showing a sharp recovery. As per the communiqué by the Ministry of Commerce & Industry the exports as well imports in services, as well as merchandise, are showing an upward trend.

 

According to the figures released by the Ministry of Commerce & Industry India’s exports, Merchandise and Services combined in February 2022  are estimated to be USD 57.03 Billion, exhibiting a positive growth of 25.41 per cent over the same period last year and a positive growth of 27.07 per cent over February 2020.

 

The ministry figures also reveal that along with exports India’s imports have also shot up with overall imports in February 2022 are estimated to be USD 69.35 Billion, exhibiting a positive growth of 35.64 per cent over the same period last year.

The area under cultivation of wine grape varieties is expected to increase by another 1,000 acre due to an increase in the sale of wine across the country. Since the improvement in sale figures post the pandemic, the wineries are expecting 20% year-on-year growth in sales.

 

At present, close to 6,000 acre is under wine grape cultivation in Nashik district.

 

One of the Nashik-based wineries, the largest in the country, is planning to add 700 acre. It already has more than 3,000 acre under the plantation of wine grape varieties. Other small wineries are also adding 300 acre to the area under the plantation of wine grapes. The grape yield is approximately 8 tonne per acre.

 

Usually, annual wine sales amount to around 1.25 crore litre. However, the pandemic took a toll on sales in the past two years.

 

Sanjiv Paithankar, the secretary of the All-India Wine Producers’ Association (AIWPA), said the first and second waves badly affected the sales, but the situation has improved in the past few months. 'We are expecting 15-20% growth in the sales of grape wine in the domestic markets since the beginning of the current financial year. Considering 20% year-on-year growth in wine sales, the requirement of wine grapes is also expected to increase. Some wineries have already started planning the increase in area under plantation through contract farming,' said Paithankar.

 

The total area under grape plantation in the state is 3.5 lakh acre, including 1.75 lakh acre in Nashik district. Of this, wine grape cultivation is on 9,000 acre across Maharashtra, including 6,000 acre in the Nashik district. The rest of the plantations in the state and the district are of table grapes.

Of the 95 wineries in India, 77 are in Maharashtra, and 39 are in Nashik alone. Maharashtra accounts for almost 90% of India’s grape wine production, while Nashik contributes 80% of the total production.

Agriculture Production Commissioner Dr. Kamalpreet Singh said that to enhance the export of agricultural, horticultural and minor forest produce items from Chhattisgarh, the state government would extend all possible help to the exporters, ensuring the quality of the exported products and fulfilling the criteria of export.

 

Singh added, 'Establishment of Phytosanitary Lab in Indira Gandhi Agricultural University, farmers, traders and produce exporters of the state would get the facility of certification of their agricultural products.'

 

Addressing the Export Awareness Meet-2022 organised by Phytosanitary Lab of Indira Gandhi Agricultural University on Monday, Dr. Girish Chandel, Vice Chancellor of the varsity said that due to lack of testing facilities for agricultural products in Chhattisgarh, the exporters here faced difficulty in exporting. In view of this, a phytosanitary lab has been established here by Indira Gandhi Agricultural University with the help of the state government, where facilities for the investigation of pesticide residues, heavy metals, microbes and genetic modification have been available in agricultural and minor forest produce items.

 

He said that it is necessary to get these tests done for export of any agricultural product.

Dr. Chandel said that the phytosanitary lab has been accredited by the National Accreditation Board for Testing and Calibration Laboratories (NABL) and is provided to the exporters at low rates. This lab has also been recognised by Agricultural and Processed Food Products Export Development Authority (APEDA).

Russia may suspend exports of wheat, barley, maize (corn) and rye starting from Tuesday until June 30, the Interfax news agency reported on Monday, citing the agriculture ministry.

 

Russia is the world's largest wheat exporter with Egypt and Turkey among the main buyers. It competes mainly with the European Union and Ukraine.

 

"The agriculture ministry and the trade ministry have prepared a draft government decree that would introduce a temporary ban on exports of the main grains from Russia from March 15 to June 30," Interfax quoted the agriculture ministry as saying.

 

The agriculture ministry did not immediately reply to a Reuters request for comment.

 

Russia's exportable surplus for the period is estimated at between 6 million and 6.5 million tonnes of wheat, Dmitry Rylko, the head of the IKAR agriculture consultancy, said.

 

Russian wheat exports are down by 45% since the start of the current July-June marketing season because of a smaller crop and grain export taxes as well as export quotas which Moscow has been using since 2021 as part of measures to stabilise domestic food inflation.

 

Last week, the economy ministry said that Russia would suspend grain exports to neighbouring ex-Soviet countries until the end of August to further strengthen its food security.

Even though India's wheat exports were robust in FY22, riding on a possible supply disruption of foodgrains -- especially wheat -- as the tensions between Russia and Ukraine turned into a full-blown war, export demand has got a fresh push.

 

The stumbling block, though, is the traditional opposition from western nations within the World Trade Organisation (WTO) to wheat exports from India because they consider the Minimum Support Price for food grains guaranteed by the government a subsidy that goes against the principles upheld by the WTO.

 

Even though India's wheat exports were robust in FY22, riding on a possible supply disruption of foodgrains -- especially wheat -- as the tensions between Russia and Ukraine turned into a full-blown war, export demand has got a fresh push.

 

The stumbling block, though, is the traditional opposition from western nations within the World Trade Organisation (WTO) to wheat exports from India because they consider the Minimum Support Price for food grains guaranteed by the government a subsidy that goes against the principles upheld by the WTO.

 

Both the countries involved in the ongoing war are major producers of wheat. India produces surplus foodgrains and the fresh export demand won't put inflationary pressure on their prices in the country.

 

To put matters in perspective, India's wheat exports during April-December 2021 were pegged at 5.04 million tonnes, against 1.06 million tonnes during the same period in 2020, and the offtake is expected to rise further in the fourth quarter, riding on record food grain production.

 

On February 16, 2022, the Agriculture Ministry announced that India was poised to produce 111.32 million tonnes of wheat, which is a record in itself. The overall estimate for foodgrains is 316.06 million tonnes, again a record.

 

In 2021, wheat production stood at 109.24 million tonnes, while overall food grains production was estimated at 303.34 million tonnes.

 

India is the second largest producer of wheat with a share of around 13.53 per cent of world's total production, but the major chunk of the production goes towards domestic consumption.

 

India, incidentally, has been the world's top rice exporter. Wheat exports have also seen a 48.56 per cent compounded annual growth rate (CAGR) between 2016 and 2020, touching $243 million in 2020, against $50 million in 2016, according to data in the ITC Trade Map 2021.

 

Still, India accounts for even less than one per cent of world wheat exports, though its share has increased from 0.14 per cent in 2016 to 0.54 per cent in 2020.

 

Now, the disruption of supplies from Russia and Ukraine has opened a window of opportunity for India's wheat exports to touch a record high.

 

The wheat that is exported is all channeled by private traders. With the opening of this new window, if India were to sell off its excess stock from government storage facilities, it may come up against the opposition of western nations.

 

'Under the WTO framework, if wheat is exported from out of the stocks procured under MSP, it is considered a violation of the public stock holding agreement,' said Devinder Sharma, an expert on agricultural issues.

 

'India gets to subsidise -- the western nations call our MSP procurement a subsidy -- only for the nutritional and food security requirements of Indians. We can procure and store for our consumption, but not export out of it, is what they claim,' Sharma added.

 

Fresh export queries, meanwhile, have led wheat prices to hit a record high in India. In Indore, Madhya Pradesh, considered to be one of the benchmark markets for the grain, wheat is being sold now at Rs 2,400-2,500 per quintal (100 kg), against Rs 2,000-2,1000 until the war broke out.

 

In the US market too, futures prices of wheat rose in a range of 40-50 per cent in the past one-month, which in a way is one more reason for Indian wheat to become attractive.

 

The demand from exporters is heavy apparently because of the talk that the supply line from Russia and Ukraine may dry up if the tensions persist.

 

Normally, prices of wheat remain on the lower side during this time of the year as freshly harvested rabi crops make their way into the physical markets -- mandis.

 

The current wheat price in India is well above the Centre's Minimum Support Price (MSP), which is a rare phenomenon. The MSP for wheat for the 2022-23 marketing season has been fixed at Rs 2,015 per quintal.

 

When wheat prices rise above MSP, it essentially means that the Centre will have to purchase lesser quantities under the price guarantee scheme as the farmers are already getting premium realisation for their produce from private buyers.

 

Analysts also believe that stepped-up wheat exports will also address the chronic problem of rampant wastage in government-owned storage facilities managed by the Food Corporation of India (FCI).

 

The government dutifully procures huge quantities of food grains under the Minimum Support Price (MSP) scheme. But it is no secret that an enormous amount of these procured grains are wasted in government holdings because these are not stored properly.

 

In the absence of proper storage -- known in the trade as CAP, or the cover and plinth method -- FCI, which procures grains from across India, stores the acquisitions in open grounds under tarpaulin covers.

 

Exposed to the elements, especially thunderstorms and sometimes floods, several such sites see enormous quantities of procured wheat being wasted.

 

Under Open Market Sales Scheme (Domestic) [OMSS(D)], FCI sells excess stock of foodgrains out of the Central Pool in the open market at pre-determined prices, explained a government official.

 

He added, 'The prices and the quantity of foodgrains that are to be offloaded under the OMSS (D) are decided by the government taking into consideration MSP, economic cost, procurement incidentals, surplus stocks, and so on.'

 

It is not immediately known how much quantity has been released under the Central Pool in the open market since the war broke out last month.

 

'But everyone would like to make hay while the sun shines, so there is definitely a possibility that the government will want to sell off its excess stocks,' Sharma said. 'And it will wriggle out of WTO provisions citing the global emergency and the need to stabilise food prices,' he added.

The Middle East food processing market size is anticipated to register growth during 2020-26.The Middle East market covers the Gulf Co-operation Council consisting of members like Bahrain, Kuwait, Oman, Qatar and the UAE, Saudi Arabia. The largest markets are the UAE and Saudi Arabia.

 

The Middle East & Africa specialty food ingredients market is projected to grow at a CAGR of 2.5% during the forecast period (2020 - 2025). The Kingdom of Saudi Arabia (KSA) and the United Arab Emirates (UAE) are the largest and fastest-growing food processing markets followed by Qatar and Kuwait. There is demand for convenience products due to higher levels of disposable incomes and shortage of time for cooking. People in Middle East prefer trying new cuisines and food products that will take less time to cook. This has increased the demand for frozen food products and high quality baby foods.The Middle East and Africa food processing machinery market was worth US$ 5.18 billion in 2021 and estimated to be growing at a rate of 6.2%, to reach US$7.1 billion by 2026.

 

The F&B market increased from $34.6 billion in 2019 to $37 billion in 2020. Expenditure on F&B is expected to increase at a rate of 6.9%. Saudi Arabia alone is expected to witness a growth of 5.4%. The Saudi Arabian food sector is witnessing heavy investments because the country wants to improve its food security. Annual investment in the food sector in Saudi Arabia is expected to reach €19.3 billion. Increase in consumer preferences to order food via food delivery app is boosting the prospects of processed foods in Saudi Arabia. The Government is supporting the establishment of wholly owned subsidiaries of foreign players.

 

The food processing equipment can perform operations like slicing vegetables, pureeing, mixing and kneading dough, shredding or grating cheese or vegetables, grinding nuts and seeds. The market is sensitive to the quality of processed foods and the way the food products have been handled.  Processed foods are now available in Middle East that offer enhanced taste, improved shelf life, low risk of contamination and easy portability.The food processing market is expected to grow significantly in the near future due to increase in demand for ready to eat food products, baby foods and frozen food products. Changes in lifestyle of consumers and awareness towards infant health and wellness coupled with more women taking up employment are the main reasons for the dramatic shift in consumption of processed foods.

 

But the picture is not entirely rosy. Consumers are concerned about loss of nutrients when food is processed or addition of genetically engineered ingredients.  Food manufacturers are shifting to use of pre-packed vegetables and ready to eat food products. The Covid-19 pandemic resulted in Middle Eastern countries announcing new laws related to food safety and security. Food manufacturers and retailers are now bound legally to take all precautionary steps to ensure safety of food products and proper packaging. Despite supply chain disruptions due to pandemic, the processed food market did not experience any major impact. Lockdowns resulted in people cooking at home and demanding frozen foods, snacks and products having a longer shelf life. The food processing market is divided into three groups - primary, secondary and tertiary food processing. Organised sector is expected to grow in the near future due to increase in food outlets and restaurants that provide hygienic food for their customers. The competitiveness in the food and beverage industry is driven by different categories of processed foods that are available for consumption like ready meals, baked foods, breakfast cereals like corn flakes and muesli sprinkled with dry fruits. Non-alcoholic beverages and confectionaries are other categories. The quality of processed foods relies on specialty ingredients.

 

Consumers are looking at purchasing food and beverages that have a shorter shelf life. Consumers seek fresh food with nutritional quotient that can boost their immunity.  Organic foods, wholegrain cereals, processed breakfast cereals along with fruits and vegetables will continue to witness a surge in demand. Consumption in meat is expected to spiral downward as consumers are concerned about consuming food products that can lead to obesity and cardio vascular complications.  So, meat processors need to introduce leaner versions of meat that contain less fat.

 

Functional foods are fortified with ingredients to enhance their nutritional value. Companies are also doing research to introduce multifunctional foods in the market. Plant-based functional extracts like green tea and antioxidants are being considered for inclusion in processed foods.

 

The UAE has become a hub for food and beverage production in the Middle East. Investments in advanced production technology, packaging and distribution capabilities reflect the growth in food processing market. Efforts are on to reduce import dependency. This augurs well for the future of the food processing industry. But hygiene standards will need a drastic improvement to meet global standards. India’s food trade with UAE is growing. Middle East countries are a great opportunity for Indian fruit and vegetable processors. Semi processed fruit pulps are exported to countries in the Gulf region for conversion to ready to drink beverages.

 

For all businesses that aspire to be market participants in the Kingdom of Saudi Arabia and the United Arab Emirates, innovation and product differentiation will drive success. Innovations can be explored in the form of new flavours, ingredients and better taste. Interestingly, the food consumption habits differ across weekdays and weekends.

 

Rising awareness about health issues, product differentiation and convenience will drive the food processing market in the Middle East. Cereals are being consumed more followed by value-added dairy products, fruits, vegetables and meat based products. Alternatives like organic foods, whole wheat and gluten free products are increasing manufacturers’ margins. Government’s efforts to create awareness about the need for a balanced diet are stoking trends in the right direction. Technologies like Internet of Things in agriculture for food processing and traceability are future developments. Millennial population in Middle East active on social media are also looking at consumption of premium products.