Project under One District, One Idea initiative of Kerala - Development and Innovation Strategic Council

Dark brown in colour and rich in iron, the jaggery made at Marayur in Idukki district is known for its fine quality, taste and distinct geographical identity. But the rising cost of production and stiff competition from knockoffs have bogged down the microenterprises engaged in its production.

 

It is against this backdrop that a collective of students has decided to reach out to the sugarcane farmers there, teach them how to match their product to foreign market standards and prepare them for export.

 

By students

 

The collective, comprising students from Amaljyothi Engineering College, Kanjirappally, seeks to bring the farmers and the jaggery producers under one umbrella, impart training in innovative practices and help the product gain access to international markets.

 

The project is being initiated under the One District, One Idea Initiative by the Kerala - Development and Innovation Strategic Council.

 

According to Sherin Sam Jose, principal coordinator of the project, it will cover the three aspects of process development, product development and digital marketing.

 

Mechanisation

 

'A framework of the project will be prepared through an interaction with the farmers and jaggery producers and an action plan will be finalised after a detailed review of the report by a committee of experts. It will explore options to mechanise jaggery making without breaking the natural process involved; make value additions; and launch an e-commerce platform, among other things,' explained Mr. Jose.

 

The entire project, according to him, will be implemented within a year.

 

Commenting on the initiative, P.V. Unnikrishnan, member secretary, K-DISC, said strengthening of the micro, small and medium scale enterprises through the academic-industry-government interface can play a key role in economic growth and equitable development. 'The objective is to ensure a transformation of these sectors from its current low-value regime to a high-value network,' he said.

 

The K-DISC has so far identified 115 innovation clusters that can be projected as the identity of a district and has shortlisted 63 institutions for academic partnership. The agency also seeks to provide seed money for the innovation component and has sanctioned an outlay of ?3.97 crore for the purpose.

Indian traders have sewn up deals to export half a million tonnes of wheat in recent days, and dealers are expected to sign more contracts to take advantage of record-high global prices, boosting shipments from the world's No.2 producer of the staple.

 

Russia's invasion of Ukraine has fanned fears over supply disruptions from the Black Sea region, which accounts for 30% of global wheat exports. That has sent global wheat prices to a 14-year high this week.

 

CAN INDIA EMERGE AS A MAJOR EXPORTER OF WHEAT?

 

India is the only major global supplier of wheat at this point, thanks to massive surplus stocks at home. The rally in global prices and a record slump in the Indian rupee against the dollar also make wheat shipments attractive to Indian sellers.

 

Indian warehouses are brimming with wheat after five consecutive record harvests - largely a result of favourable weather, the introduction of high-yielding seed varieties and state-set support prices for growers.

 

Wheat harvests will again scale new peaks in 2022, with farmers set to harvest 111.32 million tonnes from next month, up from the previous year's 109.59 million.

 

Overflowing grain bins often force the Food Corporation of India - the government-backed grains stockpiler - to store wheat in temporary sheds.

 

Wheat stocks at government warehouses total 28.27 million tonnes against a target of 13.8 million tonnes. With another bin-bursting harvest kicking in from April, granaries will overflow from May and June.

 

WHY HASN'T INDIA EXPORTED MORE OF ITS HUGE SURPLUS BEFORE?

 

Bulging wheat stocks helped the government cushion the blow from droughts in 2014 and 2015 and enabled Prime Minister Narendra Modi's administration to distribute free grain during coronavirus lockdowns.

 

But economists say maintaining such a large, unproductive inventory of wheat unnecessarily strains stretched state finances, and the monoculture also saps the soil of nutrients.

 

India has struggled to export wheat due to the annual increase in support or guaranteed prices offered by the government to growers. That increase made Indian wheat more expensive than world prices, making overseas sales uneconomic.

 

But the rare confluence of multi-year high global wheat prices, a record low rupee and a surge in demand from traders seeking to replace Russian and Ukrainian wheat with the Indian variety has made shipments from India attractive.

 

ARE THERE OTHER ADVANTAGES OR CHALLENGES FOR INDIA?

 

Robust demand from Asian buyers such as Nepal, Bangladesh, Sri Lanka, Indonesia and the Philippines allows India to supply wheat at lower freight rates. India can also supply wheat to the Middle East at lower freight costs than many other sellers.

 

Also, of late India has been able to dispel concerns about the quality of its wheat as Indian scientists have introduced many high-protein varieties suitable for pasta and pizza dough.

 

Indian traders and government officials also cite an increase in cargo handling capacity at Indian ports as another help.

 

But traders say an increase in internal freight costs to transport grain from major wheat-producing states to ports, and a potential shortage of railway wagons, could impede exports.

The India visit of the Australian trade minister in February 2022 has expedited the early harvest trade deal between both countries. An interim agreement which is expected in about a month’s time would be a major leap towards the signing of a Comprehensive Economic Cooperation Agreement (CECA) between India and Australia later this year.

 

In 2020, India was Australia’s seventh-largest trading partner and sixth largest export destination. The two-way goods and services trade between the countries was worth $24.4 billion. While India’s export basket to Australia majorly comprises petroleum products, medicines, polished diamonds, gold jewelry and apparel, Australian exports to India include coal, liquefied natural gas (LNG), alumina and gold. There is a huge demand for Australian premium alcoholic beverages and wines, health supplements, cold-pressed juices and trans-fat-free products in India.

 

The trade ministers of India and Australia stated in a joint press meet that the sensitivities of both countries will be ‘accommodated and respected’. It is likely that Australia will not seek market access for dairy, beef and wheat which are sensitive sectors for India. Earlier this year, the Commerce Ministry of India had indicated that the interim agreement would focus on labour-oriented sectors like textiles, pharmaceuticals, footwear, leather products and agricultural products, and ruled out the inclusion of dairy and agriculture items.

 

This statement underpins India’s commitment to protecting its agriculture and dairy sectors, which was one of the reasons for its exit from the Regional Comprehensive Economic Partnership (RCEP) negotiations, back in 2019. Indian dairy farmers, cooperative societies, and trade unions have taken a strong stance against the opening of sensitive sectors such as dairy and agriculture to the Australian giants.

 

The Indian dairy industry is the largest globally with milk production of 198.4 million tonnes in 2019-20. It provides livelihood to a large number of people and is dominated by milk cooperatives and small and medium-size dairy farmers, who face challenges towards achieving economies of scale in their operations. Dairy is not considered a separate enterprise in most rural households. Instead, it is well integrated with the farming system. Dairy not only supplements the agricultural incomes of farmers, but also provides a regular income and helps them overcome financial crisis during the off-season and thus, a valuable asset.

 

Approximately 35 percent of the dairy sector is organised in India with more and more private companies investing in developing an efficient milk procurement network, and marketing liquid milk and value-added products. The National Dairy Development Board projects a demand for milk and milk products at a pan-India level to reach 266.5 million metric tonnes in 2030.

 

Out of the total milk produced in India, 48 percent is consumed in the rural areas and the rest is marketable surplus for consumers. Despite being the largest producer, India’s share in the global milk trade is small. India exports dairy products to the United Arab Emirates, Bangladesh, the United States of America, Bhutan and Singapore. Skimmed milk powder accounts for 30 percent of total dairy exports. Butter, butter oil, cheese, ghee and buttermilk also form a part of the export basket. India imports (as well as exports) buttermilk, curdled milk, cream and kephir from Australia. Milk non-concentrated, cheese of all kinds, milk and cream powder are also among the dairy products imported from Australia in 2020.

 

The Indian dairy industry supports around 70 million rural households, which consist of mostly small and marginal farmers. The milk cooperatives, dairy farmers, and trade unions have opposed Free Trade Agreements with milk surplus economies such as Australia and New Zealand. Assuming that a lowering of tariffs may lead to dumping of cheap imported products and resultant disruption of the domestic dairy industry, several industry spokespersons have taken a stringent position against the opening of this sector.

 

The majority of large dairy importing nations across the world have applied various tariff and non-tariff measures to protect imports. The European Union, for instance, has not granted export clearance to Indian dairy plants under the pretext of veterinary control, levels of antibiotic and pesticide residues, etc. Even Australia permits only retorted products to be imported. While countries like the EU and USA give massive export subsidies to their dairy farmers, in India, no such support is provided to dairy farmers, making them uncompetitive in global trade.

 

The government has assured the dairy farmers that it will protect their interests. At the same time, the possibility of giving greater market access, by reducing tariffs or other import restrictions, to select agriculture and dairy products that are neither produced nor consumed in great quantities domestically, has been kept open. This is a sensible step, considering the growing domestic demand and consumer preference for premium, high value processed products. Furthermore, this can also be seen as a window for structural reforms to make the sector more competitive.

 

These reforms, particularly in supply chain management, are crucial and should comprise enhancing the quality of cattle feed, procuring quality milk, instituting rigorous quality controls, and cold chain management to increase shelf life. All with huge investment opportunities.

 

As per the projections on dairy demand in India, it is evident that production needs to be increased to meet the domestic demand. There is also need for investment in educating and training dairy farmers, and providing better infrastructure for the collection, transportation, and processing of milk to augment milk productivity and improve the quality of processed milk. Foreign investment, including that in agriculture and dairy services, can be sought for cold chain establishment, distribution and marketing.

 

It is also important to remember that foreign dairy players in the country prefer partnerships with local entities and avoid backward integration of direct procurement from farmers. Such backward integration could have benefitted our dairy farmers a lot. Another step could be to move forward and lower tariffs on dairy products not produced in India or those having high domestic demand. The rise in disposable income and preference for high protein diets has created a consumer base for such niche products. These steps may be small, but would provide a significant change in the dairy landscape of India.

The last date for exporters to submit online applications to claim their pending dues under different export promotion schemes has been extended again, according to a notification of the commerce ministry.

 

Exporters can claim pending refunds under the Merchandise Exports from India Scheme (MEIS), RoSCTL (Rebate of State and Central Levies and Taxes) scheme and Rebate of State Levies (RoSL) scheme.

 

The date for MEIS and 2 per cent additional ad hoc incentive has been extended till April 30 this year and for RoSCTL and ROSL, the deadline has been extended till March 15 this year.

 

'The last date of submitting applications under MEIS (for exports made in the period April 1, 2020 to December 31, 2020), ROSCTL, ROSL and 2 per cent additional adhoc incentive (... only for exports made in the period January 1, 2020 to March 31, 2020) has been extended,' the Directorate General of Foreign Trade (DGFT) said in a notification.

 

On September 9 last year, the government announced to release Rs 56,027 crore against pending tax refunds of exporters under different export incentive schemes.

 

Earlier, the date was extended in December 2021.

The Russia-Ukraine conflict has taken a toll on Indian gherkin exports. Gherkin shipments to Russia and Ukraine have come to a halt following the breakout of the conflict.

 

Exporters said the geopolitical tension has compounded their problems as they were already reeling under the impact of higher freight costs for the almost two years now.

 

Pradeep Pooviah, Vice-President, Indian Gherkin Exporters Association (IGEA) said there has been a serious impact of the Russian crisis on the Indian exports.

 

'Shipments have stopped and payments are struck and this may force the exporters to trim down their procurement in the days ahead,' he said.

 

Russia was the second largest buyer for the Indian gherkins in 2020-21 after the US. Shipments to Russia stood at 23,453 tonnes, accounting for almost a tenth of the total exports of 2.23 lakh tonnes.

 

In value terms, the shipments to Russia stood at ?133 crore of the total of ?1,651 crore. Shipments to Ukraine stood at 1,672 tonnes, less than a per cent in export volumes.

 

Impact of the conflict

 

The sharp decline in the value of Russian Rouble against the US dollar has triggered a crisis and exporters said payments are struck.

 

'Some of our buyers have assured to offset the losses due to sharp currency movement,' Pooviah, CEO of Blossom Showers Agro said.

 

'Following the outbreak of the conflict, some exporters have reported cancellation of shipments. Some shipments, which have not moved out of Chennai port have been recalled as shipping liners have expressed their inability to deliver the cargo,' Shivaram, President of Indian Gherkin Exporters Association, said.

 

'Following the crisis, buyers have been asking for a discount and this may add to the existing problems of the industry,' he added. The industry body is planning to take up the issue with government seeking some support.

 

Production pattern

 

Gherkins are consumed as pickle overseas and the production in India is mainly concentrated in southern States such as Karnataka, Tamil Nadu, Andhra Pradesh and Telangana.

 

Over half of the 50 gherkin processing and exporting units are located in Karnataka, the major producer.

 

India competes with the likes of Mexico and Turkey in catering to the gherkin demand from the US and European countries. US is the largest market for Indian gherkins.

 

SA Biradar, Managing Director, IGF Innovative Foods, an exporter of gherkins to the US and Europe, said that the freight costs may go up further due to the prevailing geopolitical tensions. 'Following the outbreak of Covid, freight rates have risen by almost five times and we will have to see how this crisis impacts,' he said.

 

Production of gherkin mainly takes place under the contract farming model, wherein the processors/exporters supply the inputs to farmers and buy-back the produce. An estimated 60,000 acres is under gherkin in these States and close to one lakh farmers are engaged in the cultivation. Over 99 per cent of the gherkin produced in the country is exported.

The Delhi High Court has directed FSSAI to ask food business operators (FBOs) to provide full details with respect to the ingredient and its source (veg or non-veg) on food products’ label. The High Court has also asked the Food Authority to issue a fresh notice regarding declaration of the info and about the ‘obligation’ on the food businesses for the same.

 

According to published reports, the Delhi High Court had ordered that the Food Authority should issue a fresh notice and make it widely publicised stating that the obligation placed on FBOs to disclose the vegetarian or non-vegetarian nature of the food.

 

The court has observed that the ‘non-discloser’ of the food item being veg or non-veg, affects the ‘fundamental rights’.

 

Earlier, on court’s direction FSSAI had issued a direction asking food businesses to declare on the label ‘correctly’ whether the food product is ‘Veg’ or ‘Non-Veg’, irrespective of the percentage of any ingredient in the food.

 

This came after the Delhi High Court pulled up the food regulator on a petition saying that food businesses hide info about ingredients source (plant or animal).

 

The court had observed that it should be fairly disclosed as to what is the plant source or animal source.

 

Meanwhile, the FSSAI has stated that the term 'ingredient” was defined under Section 3(y) of FSS Act 2006 which inter-alia includes food additives and issued a notice.

 

'It is clarified that the declaration regarding non-veg or veg food is mandatory irrespective of the percentage of any ingredient in the food,” read the direction by the FSSAI while adding,  'In view of the above regulatory provisions read with FSS (Labelling and Display) Regulations 2020, every package of 'non-vegetarian' food having ingredients including additives, from animal sources but excluding milk or milk products, honey or beeswax or carnauba wax or shellac, shall bear a symbol and colour code to indicate that the product is non-vegetarian food.'

India and Canada will later this week discuss issues around a bilateral trade agreement when Canada’s minister of International Trade, Export Promotion, Small Business and Economic Development Mary Ng visits New Delhi. The commerce and industry ministry on Wednesday said that various bilateral trade and investment issues will be discussed during her visit from March 10-13 in order to further strengthen the bilateral ties and economic partnership including the India-Canada Comprehensive Economic Partnership Agreement (CEPA).

 

The minister is visiting New Delhi to hold the fifth India-Canada Ministerial Dialogue on Trade & Investment (MDTI) which will be co-chaired by commerce and industry minister Piyush Goyal, the ministry said in a statement.

 

'During the MDTI meeting various bilateral trade and investment issues will be discussed in order to further strengthen the bilateral ties and economic partnership including India-Canada CEPA,' the ministry said.

 

Bilateral goods trade in 2021 reached $ 6.29 billion, up 12% as compared to the previous year. Total bilateral trade including goods and services crossed $11 billion.

 

In the current financial year during April 2021-January 2022, Indian exports to Canada have increased to $3 billion, up almost 25% over the previous year.

 

The major Indian exports to Canada include drugs and pharmaceutical products, iron & steel products, marine products, cotton fabrics & readymade garments, and chemicals while key Canadian exports to India comprise pulses, fertilizers, coal and crude petroleum.

Prime Minister Narendra Modi Tuesday said that the ongoing war between Russia and Ukraine, two of the biggest wheat exporters in the world, has increased the demand for India’s wheat in global markets and this opportunity could be used to provide the best-quality product globally.

 

Speaking at a webinar ‘Financing for Growth & Aspirational Economy’ organised by the finance ministry, he said that the financial institutions and the government departments should work to meet different financing needs of exporters.

 

He said there is now a renewed push towards self-dependence in meeting the country’s requirements, while at the same time also on seizing opportunities of boosting growth.

 

There is news of the rising attractiveness of domestic wheat in global markets, and the financial sector, import-export departments as well as shipping industry should make a 'comprehensive effort' to help wheat and other exporters, he said via a video link.

 

'Agar mano dunia mein hamare liye gehun (export) ki opportunity aayi hai, to usko samay se pehle, uttam quality, uttan service ke saath hum provide karein, to dheere dheere woh permanent ban jayega. (Suppose now an opportunity has come to export Indian wheat, we should seize this opportunity and provide the best-quality product with the best service, and slowly such an arrangement will become permanent),' he said.

 

Wheat prices have skyrocketed globally due to the geopolitical situation, especially since Russia and Ukraine are the world’s second-largest and fourth-largest wheat exporters, respectively.

 

The ongoing war between the two countries has sent prices of wheat and corn traded at Chicago Board of Trade futures exchange soaring to their highest since March 2008 and December 2012, respectively.

 

This has made Indian wheat exports very competitive. Wheat from Gujarat, Rajasthan and Uttar Pradesh is now being delivered by rail wagons or trucks at warehouses near Kandla port at Rs 2,400-2,450 per quintal, as against Rs 2,100 or so hardly 15 days ago. This is above the government’s minimum support price of Rs 2,015 per quintal for the new crop that will arrive in the markets from mid-March.

 

Modi also urged financial institutions to support the rural economy and identify eight to ten potential sectors where India can emerge as a strong player globally. He asked whether India can emerge among the top three countries in the sectors like constructions, startups, or emerging sectors like drones, space and geo-spatial data.

 

The Indian economic recovery is again picking up speed and the budget this year has taken several measures to keep up the momentum of high growth, he said, adding that the government departments should focus on effective implementation of these measures so that outcomes become visible within the next year.

 

'By encouraging foreign capital flows, reducing tax on infrastructure investment, creating institutions like NIIF, Gift City, new DFIs, we have tried to accelerate financial and economic growth…The country’s commitment to the widespread use of digital technology in finance is now reaching the next level. Be it 75 digital banking units in 75 districts or the central bank digital currency, they reflect our vision,' he said.

 

Modi stressed the need to discuss ways of reducing dependence on other countries by exploring different models of financing infra projects, citing the PM Gatishakti National Masterplan as one such example in that direction. He said that the financial institutions should also focus on the Aspirational Districts Programme and the development of eastern India and the North East.

 

A total of 16 ministries, NITI Aayog, Capacity Building Commission, state governments officials and financial sector regulators participated in the webinar wherein discussions are being held on subjects including financing of infrastructure, funding sectors with high employment potential and green finance, among others.

Algeria’s state grains agency OAIC has started purchasing optional-origin milling wheat in an international tender, European traders said in initial assessments on Wednesday.

 

Initial estimates of the purchase price were around $485 a tonne c&f, traders said. More detailed assessments of prices are expected later.

 

The volume initially bought was unclear. Swings in Paris Euronext wheat futures had made negotiations in the tender difficult, traders said.

 

The deadline for submission of price offers in the tender was Tuesday when Euronext fell after recently touching record highs, and negotiations were postponed to Wednesday, when Euronext rose sharply again.

 

The wheat was sought for shipment in two periods from the main supply regions including Europe: May 1-15 and May 16-31. If sourced from South America or Australia, shipment is one month earlier.

 

Algeria does not release results of its tenders and reports are based on trade estimates.

 

In its last soft wheat tender reported on Feb. 17, Algeria purchased about 700,000 tonnes largely at around $345.50 to $346.50 a tonne c&f.

 

Since then, global wheat prices have surged to 14-year highs following Russia's invasion of Ukraine, which Moscow terms a 'special operation.'

 

Traders said on March 3 Algeria would allow French wheat imports in March because of disruption to Black Sea shipments, overturning a recent exclusion that had hit the EU's biggest wheat exporter.

 

Traders said French wheat had been accepted in this week's tender.

Union Minister of State Shri Kailash Choudhary inaugurated Pusa Krishi Vigyan Mela 2022 in New Delhi today. The three day Krishi Mela is being organized by the ICAR-Indian Agricultural Research Institute (IARI) under the guidance of the Union Minister of Agriculture and Farmers Welfare, Shri Narendra Singh Tomar. Dr. Trilochan Mohapatra, Secretary, DARE and Director General, Indian Council of Agricultural Research (ICAR) presided over the function. On this occasion, Shri Choudhary dedicated 'Pusa Agri Krishi Haat Complex' developed in two acres. Farmers and Farmer Producer Organizations will be able to do direct marketing of their products in the 'Pusa Agri Krishi Haat Complex'. With this facility, consumers will be able to buy the products of farmers directly, which will free them from middlemen. There is a provision of 60 stalls, haats and shops in this huge complex to promote farmer entrepreneurship. Thousands of progressive farmers, women entrepreneurs and start-ups from different parts of the country have participated in the fair.

 

Appreciating the efforts being made by the Pusa Institute for the welfare of farmers, Union Minister of State Shri Choudhary called upon the farmers to take maximum advantage of new technologies, scientific innovations. Giving information about the works being done by the Government of India for the interests of farmers, he said that the government is providing facilities from seed to market to the farmers. Indian agriculture is progressing due to the hard work of farmers and research of scientists. Enthusiasm towards agriculture is being awakened among the youth. Shri Choudhary said that the Prime Minister has continuously increased the budget of the Ministry of Agriculture, which is now Rs 1.32 lakh crore, whereas seven years ago this budget was only about 23 thousand crores. More than half of the current budget is being given directly in the bank accounts of farmers in the form of Pradhan Mantri Kisan Samman Nidhi, due to which the government has expressed its sensitivity towards the farmers, while all the recommendations of Swaminathan Committee have been accepted by Modi's government.

 

Shri Choudhary said that the government has not only implemented MSP by increasing the rate on more crops but has also increased the procurement. Ten thousand new FPOs are being built in the country at an expense of Rs 6,865 crore. Facilities are being mobilized in villages from the Agriculture Infra Fund of worth one lakh crore rupees. Special packages have also been given for the sectors allied to agriculture. Due to the hard work of the farmers and the efforts of the government, there has been a record increase in the production of food grains including pulses. All these efforts shows that the government is engaged in making the country self-reliant by making the farmers self-reliant. He called upon the farmers to move forward and take the advantage of the schemes in collaboration with the government.

 

At the function, Deputy Director General (Agriculture Extension) Dr. A.K. Singh, Deputy Director General (Crop Science) Dr. T.R. Sharma, Dr. M. Angamuthu, Chairman, APEDA were also present.

 

Dr. Ashok Kumar Singh, Director, ICAR- IARI told that this fair is being organized from 9 to 11 March and  this year, the main theme of fair is 'Self-reliant Farmer with Technical Knowledge'.

 

The major attractions of the fair are: Smart/Digital Agriculture, Agri Startups and Farmer Producer Organization (FPO), Organic and Natural Farming, Protected Farming/Hydroponic/Aeroponic/Vertical Farming, Advisory for promotion of Export of Agricultural Products. The fair will showcase new varieties developed by the institute, while other innovative technologies of IARI, such as the solar powered 'Pusa-Farm Sun Fridge; Pusa Decomposer, Pusa Complete Bio-Fertilizer (unique liquid formulation providing Nitrogen, Phosphorous and Potassium).

 

IARI Joint Director (Extension) Dr. B. S. Tomar said that the advanced technologies of various ICAR institutes, Krishi Vigyan Kendras, and other institutes who are doing excellent work in the field of agriculture, have also been displayed in the fair. Dr. Tomar proposed the vote of thanks.