The Odisha government is aiming at boosting exports of non-Basmati aromatic rice to open new avenues of income for paddy farmers, an official release said on Monday. The government is focusing on exports due to the paddy production potential of the state's agro-climatic zones, existence of huge genetic diversity of aromatic rice germplasm, traditional skill of farmers and availability of port facilities, the release said. Chief Secretary Suresh Chandra Mahapatra held a virtual session recently with the stakeholders on the subject. "As a rice-surplus state, Odisha has availability for exports,'Asit Tripathy, principal adviser to the chief minister, said. There are also rice aggregators in Odisha who can be trained and mobilised for export-oriented operations, Tripathy added. Ground-level workshops should be held with rice aggregators, food exporters and farmer-producer organisations to infuse confidence in the community for production of export-quality paddy, Tripathy said.

 

Cluster approach should be adopted in the promotion of cultivation of non-Basmati aromatic varieties of paddy. Agro-climatic zones, which are more suitable for cultivation of such varieties, should be identified, he said. "The Odisha government is committed to enhance farmers' income by boosting exports of non-Basmati aromatic rice and the state will provide all possible support for the purpose,'Mohapatra said. He asked the Agriculture Department to constitute a resource team which will visit Andhra Pradesh for gaining exposure of the methods adopted for exporting non-Basmati aromatic varieties. There were also discussions on requirements such as laboratory network in Odisha, rice warehouse at Paradip port, and awareness about Indian and global food practices among the farmers. 

The landmark Comprehensive Economic Partnership Agreement (CEPA) signed recently between India and the United Arab Emirates (UAE) is a major boost to bilateral relations and economic cooperation between the two nations.

 

One of the main aims of the CEPA is to increase bilateral non-oil merchandise trade to USD 100 billion in the next five years. The CEPA will encourage bilateral investments with gains in labour-intensive industries like Textiles, Gems and Jewellery, Leather Goods and Footwear, and Food Processing. Both nations stand to benefit from this agreement. A few of the significant benefits for India are as follows:

 

Access to markets in the MENA region: The CEPA is India's first bilateral trade agreement in the Middle East and North Africa (MENA) region. This agreement will ease similar agreements with the other Gulf Cooperation Council (GCC) countries - Saudi Arabia, Qatar, Kuwait, Oman, and Bahrain. It will provide better access to markets across the wider MENA region by leveraging the UAE’s transport and logistics infrastructure.

 

Boost to Indian exports: Under the CEPA, around 90% of the products exported and 80% of lines of trade from India and to the UAE will attract zero duty, a significant benefit for Indian exports facing increased competition. The zero-duty access for Indian products to the UAE is expected to expand over 5-10 years to 97 percent of UAE tariff lines, or 99% of Indian exports by value. The UAE is India’s third-largest trading partner and second-largest export destination. And India is the UAE’s second-largest trading partner and largest in terms of exports. The UAE-India CEPA will benefit around USD 26 billion of Indian products subject to 5% import duty by the UAE. As the UAE is a major global redistribution centre, especially with exports to Africa being routed through it, the CEPA will drive warehousing and distribution centres in the UAE for Indian exporters.

 

Investment flows: The CEPA is expected to accelerate FDI inflow from the UAE into India

 

Job creation for the Indian workforce: This agreement will create additional jobs and improve the working environment for the large Indian workforce working in the UAE. It is likely to generate one million jobs in various labour-intensive businesses.

 

Ease of doing Business: The CEPA provides for automatic registration and marketing authorisation of Indian generic medicines in 90 days upon their approval in developed countries. India has given duty concessions on gold import from the UAE while Indian jewellery exporters will have zero duty access to the UAE market - significant as their trade is 16% of the global diamonds, gold, and jewellery trade.

 

Comprehensive partnership in several areas

Cultural cooperation: The CEPA sets up the foundation of an India-UAE Cultural Council to promote cross-cultural exchanges, cultural projects, exhibitions, and dialogue between thought leaders.

Energy partnership: The UAE is one of India's key energy providers and has shown its commitment to meeting India's energy demand.

 

Climate action and renewables: Both nations will cooperate on the implementation of the Paris Agreement, working closely in the contexts of Conference of the Parties (COP), the International Renewable Energy Agency and the International Solar Alliance.

 

Hydrogen Taskforce: India and the UAE have agreed to establish a joint Hydrogen Taskforce to help scale up technologies, with a special focus on the production of Green Hydrogen.

Emerging technologies: The UAE and India shall expand cooperation and collaboration on critical technologies and mutually promote e-businesses and e-payment solutions.

Skills cooperation: Both nations agreed to work together to ensure that the UAE labour market skill needs from India are met through workforce access to training programs aligned to market needs and to address the changing needs for the future of work.

 

Food security: Both nations agreed to expand cooperation through enhanced bilateral food and agriculture trade and responsible foreign investments in agriculture and food systems.

Health cooperation: It was agreed to collaborate on the research, production, and development of reliable supply chains for vaccines and to enhance investments by UAE entities in the rapidly growing health infrastructure in India.

 

Education: Both countries agreed to establish world-class institutions to drive innovation and technological progress. The first-ever IIT overseas is to be set up in the UAE.

Cooperation in international affairs, and defence and security: The UAE and India agreed to support each other in international affairs, and in defence and security to maintain peace in the region.

 

Mechanisms to prevent treaty abuse

 

The CEPA has a permanent safeguard mechanism to resort to in case of sudden surges in imports, along with strict Country of Origin rules that will prevent products from other countries moving via the CEPA route. The UAE being a global transhipment centre, there is a greater risk of such treaty abuse; hence, rules of origin are to be strictly implemented.

 

The CEPA is a historic future-looking agreement that will benefit both India and the UAE in the long run in various ways. Both countries shall now aim for its proper implementation to maximize their gains and leverage upon the several promising opportunities for growth and expansion.

 

The Minister of Commerce and Industry, Consumer Affairs, Food and Public Distribution and Textiles, Shri Piyush Goyal today said India is looking to advance the Comprehensive Economic Partnership Agreement (CEPA) with Bangladesh. Addressing the 'Inaugural session of India-Bangladesh Stakeholder’s meet', organised by the Indian Chamber of Commerce, Shri Goyal said India-Bangladesh bilateral relationship is reaching new heights due to the efforts of both the Prime Ministers, - Shri Narendra Modi & H.E. Sheikh Hasina.

 

'Our friendship has not only stood the test of time but has now blossomed into multifaceted, mutually enriching relationship with deep collaboration in trade, investment, food security & technology,' said Shri Goyal, in his address through video conference.

 

Shri Goyal listed four focus areas for strengthening India-Bangladesh relationship:

 

1. Uninterrupted Supply chain is need of the hour: As H.E. Sheikh Hasina said, 'Connectivity is productivity'; despite COVID-19, we maintained uninterrupted supply chain between the two countries. Also improving this connectivity further is imperative for expansion of our bilateral trade and realisation of the investment potential of Bangladesh and eastern India.

 

2. Need to give more impetus to Joint Production of Defence Equipment: Our defence cooperation has not progressed, though India offered USD 500 mn line of credit. Time has come to take it to the next level!

 

3. Explore potential areas of investments, like Textiles, Jute products, Leather & Footwear, APIs for Pharmaceuticals, Medical Equipment, Digital Health & Education Services, Agribusiness, Electronics, Renewable Energy, etc.

 

4. India and Bangladesh can become ‘Pharmacy of the world’: During COVID-19, vaccines produced in India, - Covaxin & Covishield created a niche for themselves as safe vaccines. Time has now come for joint manufacturing of vaccines and other medicines!

 

Shri Goyal said Bangladesh is India’s biggest trade partner in South Asia.

 

'Since 2014 we have scaled up our trade and economic engagement as collaborators and not competitors,' said Shri Goyal. 'Vaccine Maitree reaffirmed our Mitrata (friendship) with over one crore vaccines being supplied from India. We have also extended three lines of credit for $8 bn to Bangladesh, the largest concessional credit given by India to any single country. Indo-Bangladesh CEO Forum to promote investments is another testimony to our friendship. We are also developing two Indian Economic Zones at Mirsarai and Mongla in Bangladesh. The Textile Industry Forum between us constituted to facilitate cooperation in the Textiles sector is also yielding results. We have over 350 Indian companies in Bangladesh now. The Hon’ble Prime Minister Shri Narendra Modi has invited 50 young Bangladeshi entrepreneurs to visit India, which I am sure will augment our strong ties,' he added.

 

Shri Goyal said India and Bangladesh enjoy a strong relationship on the solid foundation of a shared history, culture and values of democracy.

 

'We are brothers bonded by principles of our founding fathers - Bapu & Bangabandhu, the most revered Sheikh Mujibur Rahman),' he said.

 

Recalling the visit of PM Modi in March 2021 to Bangladesh as a testament of our strong relations based on equality and trust, Shri Goyal said the 6th Dec’ 21 was celebrated as 'Maitree Diwas'; i.e. celebration of 50 yrs of Independent Bangladesh and 50 yrs of India-Bangladesh ties.

 

Shri Goyal hoped the Stakeholders Meet would provide a fillip to not only India-Bangladesh business relations but also with Southeast Asian countries. Dr. Mashiur AKM Rahman, Economic Affairs Adviser to Bangladesh Prime Minister, Shri Pradeep Sureka, President, ICC and other dignitaries participated in the meet.

Exports of major agriculture and processed products, broadly divided under 27 categories by Agricultural and Processed Food Products Export Development Authority (APEDA), have jumped 23.4 per cent to $19.7 billion during April-January of 2021-22 from $15.97 billion in the year-ago period, the Commerce Ministry said on Monday.

 

The APEDA-promoted products have nearly 50 per cent share in the country’s overall agricultural export of $41.25 billion (in 2020-21), whereas marine products came second with 14 per cent share, followed by spices with 10 per cent share.

 

A maiden export policy for the farm sector was announced in 2018 with the target to double the agricultural exports to $60 billion by 2022-23.

 

'We continue to focus on creating infrastructure for boosting exports by focusing on clusters in collaboration with state governments while taking into consideration the objective of Agriculture Export Policy, 2018,' said M Angamuthu, chairman of APEDA.

 

The Commerce Ministry has set a target of $23.71 billion for APEDA during 2021-22.

 

Chart-toppers

Export of rice was at top position with $7.7 billion (up 13 per cent) during the 11 months of this fiscal for which data have been released. Wheat shipments increased to $1.74 billion (up 387 per cent). Other cereals including maize registered a growth of 66 per cent to $869 million.

 

Meat, dairy and poultry products exports grew to $3.40 billion (over 13 per cent) and that of fresh fruits and vegetables were up 16 per cent to $1.20 billion. Shipments of processed fruits and vegetables were up by 11 per cent at $1.27 billion.

 

The Ministry also said that exports of cereal preparations and other processed food items grew by 14 per cent to $2.96 billion and that of cashew exports by 11 per cent to $383 million.

Commerce minister Piyush Goyal and his Canadian counterpart Mary Ng will meet in New Delhi on Friday to begin talks for a free trade agreement (FTA) between the two countries, two people aware of the development said. The negotiations for a comprehensive economic partnership may also cover investment and services. However, India is looking for an early harvest or an interim trade deal before progressing with a full pact.

 

'India and Canada are set to launch FTA talks on Friday. We will go ahead with the same strategy as that with other developed countries of doing an early harvest deal first,' said a government official.

 

While Canada is looking at an investment protection agreement as part of the comprehensive deal, India is keen to discuss market access for agriculture, textiles, pharmaceuticals, and easing of technical and sanitary and phytosanitary barriers to trade.

 

'The India-Canada talks will officially be launched by the trade ministers in New Delhi,' one of the two officials cited above said on condition of anonymity.

 

The launch of trade talks comes in the backdrop of worsening geopolitical tensions following the Russian invasion of Ukraine, which has impacted global trade. Earlier in 2019, India had decided to opt out of the Regional Comprehensive Economic Partnership (RCEP) citing 'significant outstanding issues, which remain unresolved'. The domestic sector had argued that it could get hit due to cheaper alternatives from other countries.

 

The two sides had begun talks for a comprehensive economic partnership agreement in 2010, but it did not see much progress, although the negotiations went on till 2017. This time, the two sides may look at signing a mini trade deal or an early harvest deal, which keep the difficult and sensitive issues to be dealt with later as part of the full pact.

 

Canada is India’s 31st largest market, accounting for just $3 billion or 0.88% of India’s total outbound shipments in April-January 2021-22. Imports from the North American nation stood at $2.5 billion during this period, making up for 0.52% of India’s total inbound shipments. With imports worth $2.68 billion, and exports worth $2.9 billion in 2020-21, India had a small trade surplus of nearly $200 million with Canada.

 

Organic chemicals, pharmaceuticals, and apparel and textiles have been India’s top exports to Canada, with shipments worth $198 million and $261 million and $210 million in the April-January period of 2021-22. Iron and steel exports to Ottawa stood at $300 million.

 

Imports from Canada included vegetables and petro products of $343 million and $542 million respectively.

 

Mint had earlier reported that India is keen to have a strong services agreement under the proposed CEPA as Canada is not a large market for Indian goods. Besides, India is looking at generating more jobs for its teeming IT professionals, by facilitating easier work visas for Canada under the trade agreement.

Commerce and industry minister Piyush Goyal on Monday said that India will clock around $410 billion of goods exports in FY22, higher than the $400 billion aimed despite the 'problems in the Northern part of Europe and Asia'.

 

With services exports likely to cross $250 billion, he said will be possibly for the first time that close to 25% of the nation’s gross domestic product (GDP) would come from overall exports.

 

'We’re at $374 billion of exports till February. Despite the problems in the Northern part of Europe and Asia, we are well on track not only to achieve $400 billion, I’m hoping closer to $410 billion,' Goyal said at an event organised by industry chamber Assocham.

 

The minister added that he has reset the target for services export twice during the year and despite travel, tourism and hospitality 'taking a knock, I won’t be surprised if we cross $250 billion'.

 

'So this will be a year of huge records, possibly for the first time, with we edging very close to 25% of the nation’s GDP coming out of exports both goods and services,' he said.

 

Goyal said that India has reduced or eliminated the compliance burden on almost 27,000 compliances at the centre and states.

 

He said if India wants to be a $5 trillion economy, the exports of goods and services will have to be a $1 trillion each.

 

'Ideally 25% but atleast 20%. I say 25% because we need to support our import of oil and therefore our exports will have to go up leaps and bounds so that we can continue to finance our imports and strengthen the rupee in days to come,' he said.

 

Noting that he is not of the old school of thought of one section of industy or exporters which believe that a weak rupee or a weak currency supports exports, Goyal said: 'I believe a strong currency reflects the strength of a nation and will always be good for exports because india is a net importer of goods. A strong currency supports the Indian economy'.

 

Goyal asked the industry to explore existing free trade agreements FTA or ones India is negotiating and see how they can be used at their full potential. The minister added that from Tuesday, the third round of negotiations with the United Kingdom for an FTA will start while talks with Australia are on.

Agriculture and education in skill development were mentioned at the second India-Japan Dialogue as areas of focus for India-Japan collaboration in the northeastern region.

 

Agriculture and education in skill development were mentioned at the second India-Japan Dialogue as areas of focus for India-Japan partnership in the northeastern region. 'Development of India's North Eastern Region and Neighbourhood' was the theme of the dialogue. 

 

Collaboration between India and Japan to Promote Entrepreneurship and People Connectivity'. It was held last week and was organised by a major think tank from the Northeast Asian Confluence in partnership with the Japanese Embassy in India. 

 

'The comprehensive collaboration between India and Japan provides the landlocked north-east with access to the Bay of Bengal and access to ASEAN countries, which plays a key role in unleashing enormous potential for growth and prosperity based on better access to the Indian Ocean, becomes crucial for the improvement of people's lives,' said Suzuki Satoshi, ambassador of Japan in India, in his inaugural address. 

 

In his introductory comments, M.P. Bezbaruah, former Member of the North Eastern Council and Chairman of the Governing Council of Asian Confluence, emphasised specific areas of collaboration. 

 

Smita Pant, Joint Secretary in the Ministry of External Affairs, highlighted all the activities happening in augmented services based on hard infrastructure connection initiatives that have already made headway in her special presentation. With its plentiful output and strategic position, NER has the potential to become a key participant in India's international commerce with its neighbours, notably in the agricultural sector, according to Pant. 

 

Market connections, cultivating qualified people resources, and guaranteeing security are all major elements in attracting Japanese companies to the region. 

 

Mr. Rajat Nag, a member of the Asian Confluence Governing Council and former Chairman of the Asian Development Bank, presided over a lively discussion. Specific product possibilities were considered, including buckwheat, bamboo, spices, shitake mushrooms, medicinal plants, skill development, language training courses, and collaboration with educational institutions. 

 

At the discussion, Kazuhide Sugimoto, a top mushroom producer, gave a presentation, as did K.N. Kumar, Chairman of the Meghalaya Farmers Commission, who spoke about special activities on Buckwheat in Meghalaya, and Mr. Kamesh Salam, who spoke about ongoing Bamboo projects. 

 

'The goal of this dialogue was to not only highlight and promote further narratives of cooperation, but also to matchmakers to forge concrete collaborations on specific products by connecting entrepreneurs and opinion leaders from Japan, India, and our Bangladeshi neighbours,' said Sabyasachi Dutta, ED of Asian Confluence. 

The Minister of Commerce and Industry, Consumer Affairs, Food and Public Distribution and Textiles, Shri Piyush Goyal today said India’s exports share in GDP should rise to at least 20%. Shri Goyal also said a strong Rupee will be good for exports.

 

'If we want to be a $5 Trillion economy, our exports of Goods and Services will have to a Trillion Dollars at least, - ideally 25%, but at the very least 20%! And why I said 25%, because we need to support our import of Oil. And therefore our exports will have to really go up by leaps and bounds so that we can continue to finance our imports and strengthen the Rupee in the days to come,' said Shri Goyal, delivering the keynote address to the ASSOCHAM Annual Sessionon 'The great Reset: Reinforcing India’s GlobalPositioning'.

 

'I personally am not of the old school of thought (or) one section of Industry or society or exporters which believe that a weak Rupee or a weak currency supports exports. I believe a strong currency reflects the strength of a nation and will always be good for exports, because India, at the end of the day, is a net importer of Goods. A strong currency supports the Indian economy,' said Shri Goyal, in his video conference address, throwing open the issue to wider debate.

 

Shri Goyal said he is hopeful India’s exports will touch $410 Billion in the current Financial Year.

 

'I am delighted that we are at $374 Bn until February, 2022, i.e. 11 months of this (financial) year. So I do believe that irrespective of problems that we have in the northern parts of Asia-Europe, we are well on track not only to achieve 400 ($400Bn), I am hoping closer to 410 (410Bn),' he said.

 

Shri Goyal called for the reorienting of economic laws to suit the changing needs of time.

 

'We will have to look at all of our traditional ways of working or doing business afresh,' he said.

 

'There comes a time in thedevelopment journey of every country when the countryredefines itself afresh & pushes forward with newresolutions. Today, that time has arrived in thedevelopment journey of India', said Shri Goyal, quoting Prime Minister Shri Narendra Modi.

 

Shri Goyal said the goal of 'AmritKaal' is to ascend to new heights ofprosperity for India and the 135 crore citizens of India.

 

'There is so much positivity in the world regarding theposition of India and this positivity is because of the hopesand dreams of 130 crore Indians. Today, sentiment has moved away from ‘Why India? to Why notIndia?’', he said.

 

Quoting PM Modi, Shri Goyal said, 'AmritKaal is of 25 years. But wecannot wait for that long to achieve our goals. Wehave to start now. We don't have a moment to lose'.

 

Stating that the COVID-19 has presented us with a unique opportunity toattract global manufacturing giants as companies lookto become resilient & diversify supply chains, Shri Goyal said we just need to leverage our ‘EDGE’ to give us an Edge inthe global competition:

 

?Economies of Scale

 

?Demographic Dividend

 

?Good Governance, &

 

?Encourage Innovation in Industry

 

Shri Goyal said the Government, through its various bold reforms, has provided anenabling ecosystem for India to make a mark in theGlobal Manufacturing landscape. He stressed that Quality and Productivity will be hallmarksof India’s future Manufacturing ecosystem.

 

Shri Goyal said the Government is identifying focus areas based on ourCompetitive advantage and Comparative advantage. Union budget 2022 has reinforced our commitment to anAatmanirbhar Bharat. A series of post-budget webinars are in progress,laying emphasis on different aspects likeAatmanirbharta in Defence, GatiShakti, Make in Indiafor the World, Energy for Sustainable Growth, etc.PM Modi is leading from the front by joining thesewebinars personally.

 

Shri Goyal gave a 3-point Call to Action for the Industry:

 

1. Explore various FTA provisions and use them to itsfull potential; take active part in existing negotiations, - FTAs are 2-way traffic; we have to be demanders &also accommodate their demands

 

2. Through actions, instil a feeling of pride in ourcitizens, that our products are at par or even betterthan global products. Make the difference visible!Gone are the days when imported meant better, 'Made in India' mark should compete with globalbrands in every category

 

3. Focus on development of Aspirational districts & Tier2 & 3 cities. These can be the future export hubs.

 

Shri Goyal said let all of us, - the Industry, Government& Citizens, work together toreinforce India’s position as a world leader by increasing India's share in Global Trade, raising share of Manufacturing in our GDP and aim to reach among the top 3 nations in Global Services Trade.

 

'Let us Make in India for the World,for which our collective effort (SabkaPrayas) is ofutmost importance,' he said.

With wheat prices soaring to a record high of $13.50 a bushel (nearly $500 a tonne) on the Chicago Board of Trade on Friday, India is reaching out to exporters and countries that are looking for wheat supplies.

 

In addition, it is also looking to supply other agricultural commodities such as corn (maize) and rice, which are also witnessing a demand in view of the spike in wheat prices.

 

Trade analysts see India emerging as the 'food bowl' in Asia at least, besides meeting the immediate needs of other countries, particularly North Africa. In Asia, only India has stocks that can help meet needs of countries in the region.

 

Price up 60 per cent in a week

 

'We are getting enquiries from even countries such as Thailand for wheat supplies to meet food and feed requirements,' said M Madan Prakash, President, Agri Commodities Exporters Association. 

 

Wheat prices are up nearly 60 per cent since February 24 when Russia ordered its troops into Ukraine as the trader is worried over how long ports in both nations will remain shut due to this geopolitical crisis.

 

Benchmark wheat futures were quoted at $13.4 a bushel ($492.35 a tonne) on CBOT on Friday afternoon, more than double the price year-on-year. According to the International Grains Council, prices of wheat from major exporting nations are all ruling above $400 a tonne following the Russia-Ukraine standoff. 

 

Corn, rice competitive

Prices of corn are up by over 16 per cent and rice by six per cent over the past week, leaving India as the most competitive origin to supply these commodities. According to IGC, corn prices are currently ruling above $340 a tonne free-on-board from leading exporting nations, while five per cent broken white rice is quoted near $400. 

 

Indian prices for these commodities are far more competitive by about $20 a tonne. Besides, India enjoys freight advantage being nearer to the importing nation. 

 

Agricultural and Processed Food Products Export Development Authority (APEDA) Chairman M Angamuthu told BusinessLine that the authority, which supervises exports of agricultural commodities, is in touch with various countries. 

 

‘In touch with missions abroad’

 

'Export of wheat and corn will reach new heights in the days to come. We are in touch with Indian missions abroad too,' he said. 

 

Prakash said Vietnam and Thailand were seeking corn from India at prices higher than a week ago. 'But offer prices here too are rising for these. For example, wheat is now offered to us at Rs22,000 a tonne,' he said. 

 

The ACEA president also said APEDA officials had got in touch with exporters like him to find out if they need any help for shipments. 

 

Alerting mission is also for India to step in to meet food shortages in any of the countries, especially in Asia and Africa. During the Covid pandemic, India eased restrictions on the movement of agricultural products helping shipments of these commodities.

 

These shipments went a long way to fulfil the needs of the countries in need. With geopolitical tensions rising, agricultural exports are expected to meet the $23.7 billion target for the current fiscal. 

 

During the first nine months of the current fiscal, exports of major agricultural and processed products, promoted by APEDA increased by 23.81 per cent to $17.47 billion (Rs1,29,782 crore) from $14.11 billion in the year-ago period. 

 

Boon for Indian growers

 

Demand for wheat and corn exports are turning out to be a boon for Indian growers since prices in agricultural produce marketing committee (APMC) yards are increasing. In the case of wheat, prices are above the minimum support price (MSP) of Rs2,015 a quintal for the new crop arriving now. Corn prices are also hovering around the MSP level of Rs1,870 a quintal. 

 

In the last couple of weeks, exporters have signed deals to ship out one million tonnes of wheat and at least half a million tonnes of sugar as India turns competitive in the global agricultural market. 

 

Wheat prices have soared mainly since the Port of Odessa has suspended operations bringing all exports to a halt. This has left the global trade worried as Russia and Ukraine account for nearly 30 per cent of the total global exports. 

 

USDA projections

 

The closure of the Port of Odessa when the Russian troops are approaching Ukraine’s third-largest city compounded by dry weather in South America, trigger fears of a supply shortage. 

 

Though no one is sure about the shortage in supplies, the US Department of Agriculture has projected global wheat exports to increase to 208.45 million tonnes (mt) during the current season (August 2021-July 2022) from 198.75 mt last season. 

 

Of this, Russia (35 mt) and Ukraine (24 mt) are expected to account for nearly 30 per cent. The geopolitical crisis will mean that importing nations will have difficulty to scout for nearly 30 per cent of the wheat supplies that could be affected. 

 

The USDA has projected ending stocks dropping to 278.20 mt this season from 289.88 mt last season. India’s wheat stocks, too, are currently lower at about 26 mt compared with 29.54 mt a year ago.  

 

Also, sanctions against Russia, particularly the expulsion of some of its banks from the SWIFT ((Society for Worldwise Interbank Financial Telecommunication) system has left the traders worried if contracts could be gone through.

 

On the other hand, wheat prices are likely to remain elevated as inputs have gone up sharply with prices of fertilizers, fuel, seeds, insecticides and pesticides surging. 

The free trade agreement between India and the United Arab Emirates is a comprehensive deal that moves beyond a limited trade pact, said Thani Bin Ahmed Al Zeyoudi, the emirates’ minister of state for foreign trade. Besides commerce, the Comprehensive Economic Partnership Agreement (CEPA) could open the doors to the full range of financial, technological and human capital exchange, he told HT in an online interview. Edited excerpts:

 

When will the free trade agreement be operationalised?

 

The CEPA deal will now revert to each country’s legislative bodies for ratification, a process that we expect to conclude within the next three months. The agreement will enter into force two months after ratification by both countries. As such, we anticipate that businesses in both countries will be begin seeing the benefits of this new partnership in the second half of 2022.

 

What are the stages of operationalisation?

 

The agreement is comprehensive in nature and covers 18 chapters. Implementation of all chapters will begin immediately upon ratification of the agreement. Some sectors will see the removal of tariffs from day one, while other sectors will see tariffs reduced or phased out over time. The details of tariff concessions and the schedule will be published soon.

 

ow will the UAE gain from the trade pact? How will it help Indians living in the UAE?

 

It’s important to say at the outset that this CEPA has been structured for maximum advantage of both parties. In whatever way the UAE will benefit from the deal, we are confident India will too. The UAE’s motivation for entering into CEPA negotiations with India was clear: in the year we marked our golden jubilee, we revealed a bold series of initiatives to re-engineer our economy for the next 50 years of growth and opportunity.

 

In the short term, we are seeking to double the size of economy from AED1.4 trillion to AED3 trillion by 2030 and, as we emerge from the Covid-19 pandemic, strengthening and deepening our relationships with strategically important partners such as India is a key component of that goal. Our CEPA agenda is geared around accelerating free flow of goods, rebuilding supply chains, increasing trade volumes to and from the UAE, enhancing our status as a facilitator of global trade and accelerating investment and joint-venture opportunities.

 

The India-UAE CEPA achieves this by substantially removing or reducing tariffs, improving market access to the world’s fifth-largest economy, making companies in each country eligible for government procurement, and creating a platform for small and medium scale industries to collaborate and expand internationally.

 

The agreement will have a positive impact on the whole economy, providing opportunity for all citizens and residents of the UAE, of which Indian expatriates make up a sizeable portion. We are confident they will use their talents and connections to help realise the full potential of this new partnership.

 

As the name implies, this is a comprehensive deal, one that moves beyond a more limited free-trade agreement. Trade and commerce are obviously cornerstones of it, but we see the India-UAE CEPA as opening doors to the full range of capital exchange, whether that’s financial, technological, or human.

 

The two countries already enjoy deeply intertwined economic ties. The UAE’s investment in India is estimated to be around $14 billion, which means the UAE is India’s tenth largest source of foreign direct investment (FDI), with a strong focus on services, maritime industries, energy, infrastructure and real estate and development. India, for its part, has $8 billion worth of direct investment into the UAE, or 6% of the country’s total FDI.

 

We see CEPA opening the doors to further cooperation, adding to the multimillion dollar deals that have recently been secured in sectors such as digital services, logistics infrastructure, energy and food production and transport.

 

Strategic ties between the UAE and India continue to strengthen in several areas. In the food and agri-tech sector, for example, the UAE and India established a dedicated food corridor to secure food and perishable produce supply chains, especially in times of emergency. The UAE and India are also working closely together to support startups and cooperate in other areas such as climate action, innovation, and digitalisation.

 

Regarding FATF, the UAE takes money laundering extremely seriously, and we have been improving measures to meet global standards, including signing extradition treaty agreements with 33 countries including India. We have bolstered our financial intelligence unit and have created a register of corporate beneficial ownership to improve communication with international partners. Our recent UAE Good Delivery programme has also improved our governance of the gold sector, which is of particular importance to UAE-India trade.

 

In terms of the WTO, the UAE is fully committed to supporting the objectives of the WTO and we will continue working with member countries, including India, to continue driving consensus on critical issues and strengthening the multilateral trading system.