Private equity investments in agri-tech space have skyrocketed in last 4 years, growing at more than 50 per cent per annum to aggregate approximately Rs 6,600 crore, a report by Bain & Company showed.

 

Titled 'Innovation in India’s rural economy: Disruptive business models are stimulating inclusive growth in agriculture and rural finance', the report has been prepared by Bain & Company and the Confederation of Indian Industry (CII).

 

It said that rural economy contributed nearly half of India’s overall gross domestic gross domestic product (GDP) in 2019–2020.

 

'Two-thirds of the population participated in rural economy in the past two years, and agriculture—the largest sub-sector within rural economy, had the highest share of output, contributing approximately 37 per cent of the total rural GDP,' the report noted.

 

Agriculture sector has been growing steadily at a compound annual growth rate (CAGR) of 11 per cent since 2015, supported by government and private sector initiatives towards improvements in its physical and digital infrastructure.

 

It has also witnessed highest disruption in terms of smartphone and internet penetration. This ecosystem is now at an inflection point, and companies that address inefficiencies across the value chain will have explosive growth potential, the report said.

 

Parijat Jain, partner and leader of Bain’s Agribusiness practice in India said: 'Disruption in India’s food and agriculture will evolve from traditional agriculture to new farming models, advanced agri-tech services, and new food products. In the last six years, several start-ups have emerged to reduce systemic inefficiencies among inputs and marketplaces, precision farming, processing and storage.'

 

The report further explained that over the past decade, India’s rural ecosystem has evolved significantly with multiple enablers priming this space for future growth. These trends have created an environment ripe for innovation—allowing start-ups and traditional players to introduce disruptive business models that address inefficiencies particularly in India’s agriculture and finance sectors.

 

UPI transactions double

 

According to Bain-CII estimates, about 30% of the rural ecosystem is adopting digital payment and digital commerce solutions to avail easier access to agri-financial services.

United Payments Interface (UPI) transactions have doubled in the past year, processing eight times more transaction value than credit cards.

 

The report said that even while cash remains the dominant method of payment for rural financing, accounting for roughly 90 per cent of all payments, digital payments penetration is increasing, driven by government interventions like the Payment Infrastructure Development Fund.

Digital-first banking models and lowering of operational costs (which enabled lenders to service lower-value loans) also helped lending organisations scale into the sector, it added.

Growth in rural microfinance sector

 

In the past 18 months, rural microfinance sector has grown significantly. From a gross loan portfolio of about Rs 1,22,500 crore in December 2019, it has risen to Rs 1,46,700 crore in March 2021.

 

'There has been a significant increase in access to credit in the rural ecosystem too. Agri credit has grown at 10 per cent CAGR in the last five years, reaching nearly Rs 14 lakh crore in 2019–20,' the report said.

 

About 35 per cent of agri-credit business comes from Tamil Nadu, Andhra Pradesh, and Uttar Pradesh, it added.

The Government of India is actively considering creating buffer stock for edible oil. The Government has shown positive inclination towards setting up buffer stocks of edible oil, given the steep price rise witnessed in the last three years.

 

According to edible oil traders, while holding talks with the Government on the situation that arose out of the price rise of edible oil, the traders have suggested the creation of buffer stocks in line with the buffer for food grains.

 

Shankar Thakkar, president of the All India Edible Oil Traders’ Association, has stated that creation of buffer stock was suggested to the Government to ease out the pressure put on domestic edible oil prices due to international causes like the Russia–Ukraine war or bad weather impacting the oil seed production.  

 

The edible oil traders say that the measures taken by the government to increase domestic production would take time to yield results and therefore to stabilise the prices, buffer stock was needed.  

 

Thakkar has said that to arrest the price rise, the Government can take immediate steps like asking the importers to sell edible oil on purchase price.

 

India imports 80% sunflower oil from Ukraine and Russia and both countries are now engaged in a military action. The supplies will be hit till the situation gets normal.

 

The prices of sunflower oil have already witnessed a steep rise ranging from 35-40%, soybean 30-35%, while palm oil has witnessed a rise of close to 25% in the recent past. The retail prices of these oils are also hovering between Rs 150 and 200 per litre.

 

The traders also reiterated their demand for removing the stock limit on edible oil to ease out the oil trade.

Government’s agri export promotion body APEDA and re-financing agency Nabard will soon impart training to 30 farmer producer organisations (FPOs) in Varanasi, Mirzapur, Ghazipur, Gorakhpur and Chandauli districts of Uttar Pradesh as part of a five-year plan to boost agricultural exports.

 

Already the government has allotted different agri products to these districts under 'One District One Product' scheme – chilli for Varanasi, tomato in Mirzapur and Chandauli, onion for Ghazipur and Kala Namak rice variety in Gorakhpur.

 

Earlier this week, both Agricultural and Processed Food Products Export Development Authority (APEDA) and Nabard have agreed to launch the training programme at the earliest, sources said.

 

Nabard Consultancy Services (NABCONS) will be the project manager to implement the training programme, the sources added.

 

Pilot initiative

 

Confirming the development, APEDA Chairman M Angamuthu said: 'This is a pilot initiative and we will extend it to next level soon.'

 

'The course curriculum will be customised by Nabcons in consultation with APEDA for imparting focused training on export oriented theme,' he said.

 

Such training programmes will strengthen the role of FPOs in the export value chain, he added.

 

There are a total of 117 FPOs and farmer producers’ companies (FPCs), including 30 such bodies promoted by Nabard,have been operational in these five districts.

 

Besides NABARD, APEDA has also signed memorandums of understanding (MoUs) with other implementing agencies of FPOs scheme – Small Farmers’ Agri-Business Consortium (SFAC) and National Cooperative Development Corporation (NCDC).

 

Under these MoUs, APEDA willoprovide technical knowhow to tPOs to upscale infrastructure created for post-harvest management to promote exports.

 

APEDA will also assist FPOs in certification of organic produce.

 

FPOs promotion scheme

The government in 2020 had launched 'Formation and Promotion of FPOs' scheme under which 10,000 new FPOs are targeted to be formed by 2027-28.

 

Under the scheme, the Centre grants up to Rs33 lakh as handholding and financial support for five years to each new FPO. Also, a credit guarantee facility up to Rs2 crore of project loan per FPO is in place.

Turkey's state grain board TMO has started making provisional purchases of wheat in an international tender on Wednesday with about 175,000 tonnes initially bought, traders said.

 

The tender seeks 435,000 tonnes and more purchases are expected later on Wednesday.

 

The purchases in TMO’s tenders are provisional and subject to final confirmation in coming days. Purchases can be reduced or cancelled completely.

 

Both imports and wheat already in warehouses in Turkey could be offered in the tender for shipment/delivery between March 10-April 8.

 

Traders said the tender was dominated by offers of wheat already in warehouses inside Turkey, with Ukrainian and Russian exports disrupted by the fighting in Ukraine.

 

Some export houses have been shipping Russian wheat into Turkey in advance of sales to escape repeated increases in Russia's export taxes.

 

Traders reported these provisional purchases with port of unloading/delivery, tonnes sold, protein content, seller, price in dollars a tonne and if to be delivered from a warehouse in Turkey:

 

Port Tonnes Seller Protein Price If warehouse

 

Iskenderun 25,000 Kibar 13.5% $408.90 warehouse

 

Iskenderun 25,000 Aston 12.5% $410.80 warehouse

 

Iskenderun 25,000 Aston 13.5% $414.80 warehouse

 

Mersin 25,000 Grain Star 12.5% $442.80 warehouse

 

Mersin 50,000 Erser 13.5% $447.00 warehouse

 

Derince 25,000 Erser 13.5% $470.00 warehouse

 

'I think this tender is another illustration of the financial pain faced by importers after wheat prices rose so sharply since the conflict in Ukraine started last week,' one European trader said.

 

In its last wheat purchase on Jan. 18, Turkey bought some 335,000 tonnes at the lowest price of $341.90 a tonne c&f

Experts feel that the cooperative sector needs a holistic approach to mitigate the challenges for its overall development in the country and reasonable success seen in sectors such as milk, credit, and agriculture can be employed for the same.

 

Cooperative sector experts deliberated at the Multi-Stakeholder Consultation hosted by the CII here on Wednesday, which was structured around key areas such as policy framework, success stories and opportunities for partnerships within and beyond for cooperatives.

 

The consultation was a collaborative initiative of the Confederation of Indian Industry (CII), Institute of Rural Management Anand (IRMA) and International Labour Organization (ILO), India.

 

The event was attended by senior representatives from industry, UN agencies, academia, cooperatives, start-ups, and development specialists from ITC, Dabur, IFFCO, Amul, Nurture Farm, Bain & Company, ILO, IRMA, the National Cooperative Union of India, SEWA, Sahakar Bharati, the International Cooperative Alliance, the National Cooperative Dairy Federation of India Limited, amongst others.

 

Additionally, the consultation emphasised on the need to explore more ways to infuse good practices and processes in cooperatives across other dimensions for greater impact on the Indian economy.

 

 

The government on Wednesday sought suggestions from stakeholders and industry bodies on intellectual property rights (IPR) issues in the possible trade agreement between India and Canada.

 

The Department for Promotion of Industry and Internal Trade (DPIIT) said that the two sides are discussing a trade agreement which has a 'possibility of an interim agreement” on a wide range of areas of mutual interest.

 

'The department is currently engaging in a scoping and contouring exercise for the IPR chapter under the proposed trade agreement,” it said in a statement, asking the stakeholders to submit the details latest by March 21, 2022.

 

The department has asked stakeholders to furnish details on the IPR areas which are of 'prime considerations” such as patent, trademark, copyright, design, geographical indications, enforcement, commercialization and technology transfer, and regulatory approval.

 

As per the proforma issued by the DPIIT, they also have to provide areas of concern such as filing, registration, enforcement or commercialization of stakeholders’ IP rights in Canada, and the level at which the challenges were observed such as IP offices, enforcement agencies or any other government or regulatory agency besides the focus areas for the government in its collaborative efforts with Ottawa.

In line with the vision of the Hon’ble Prime Minister Shri Narendra Modi, to make India a global hub for manufacturing, the Department for Promotion of Industry and Internal Trade (DPIIT), Ministry of Commerce and Industry is organizing a Post Budget Webinar on 'Make in India for the World' on Thursday, the 3rd of March 2022.

 

The Union Budget 2022 has laid down a roadmap for India@100 with manufacturing as one of the key drivers of growth and employment generation. The webinar will include discussions on a paradigm shift in manufacturing in India, realising the trillion-dollar goal in Exports and also on MSMEs as a growth engine for the economy.

 

Carrying forward the themes of the Union Budget 2022, with focus on EoDB 2.0, implementation of all-inclusive technology led industrial development, skilling and employment, among other things, the Webinar will be addressed by the Hon’ble Prime Minister, and will see participation by the Hon’ble Minister for Commerce & Industry, senior officials of Central and State Governments, and senior Industry leaders.

 

The objective of the webinar is to sustain momentum of Union Budget 2022 by synergizing efforts with all stakeholders on various initiatives taken for boosting manufacturing, increasing exports and strengthening the MSMEs. By leveraging stakeholders’ expertise and experience, an Action Plan for the Industry’s way forward and monitoring framework for effective implementation of growth reforms in areas of manufacturing, exports and MSMEs will be finalised.

 

Prime Minister Shri Narendra Modi will deliver a special address to all participants on the vision of ‘Make in India for the World,’ its convergence with Union Budget 2022 and the expectations from the Webinar. Minister for Commerce and Industry, Consumer Affairs, Food and Public Distribution and Textiles, Shri Piyush Goyal will be delivering the concluding remarks for the event.

 

Following the opening session, the participants will break out into three consecutive sessions covering (i) Paradigm shift in manufacturing in India @ 100, (ii) Charting out the strategy for Realizing India’s Trillion Dollar Goal in Exports and (iii) Exploring how the MSMEs will act as the Growth Engine for Indian Economy.

 

DPIIT, Ministry of Commerce and Industry will be leading the session on 'Paradigm Shift in Manufacturing in India @ 100' to deliberate on the growth strategy for Industry 4.0, Auto and Auto Components, Telecom, Steel, Pharma & Medical Devices, Textiles and Drones. Sh Baba Kalyani, Chairman and MD, Bharat Forge will be the moderator for the session. This session will conclude with remarks from Secretaries in M/o Heavy Industries, D/o Telecommunications, D/o Pharmaceuticals and M/o Steel, followed by remarks from Industry Principal Secretaries of the States of Gujarat, Uttar Pradesh and Telangana.

 

The second session on 'Realizing India’s Trillion Dollar Goal in Export' will be led by Department of Commerce, Ministry of Commerce and Industry. This session will focus on ways to realise India’s larger goal of achieving the Trillion Dollar mark for exports and will cover focus sectors of Electronics, Agriculture & Food Processing, Textiles, Additive Manufacturing, Robotics. The session moderator is Shri Vir S Advani, VC & MD, Blue Star Ltd. This session will conclude with remarks from concerned Secretaries in D/o Commerce, M/o Electronics and Information Technology and M/o Agriculture and Farmers’ Welfare, followed by remarks from Iindustry Principal Secretaries of the States of Maharashtra, Punjab and Karnataka

 

The third session led by Ministry of Micro, Small and Medium Enterprises, is titled 'MSMEs as the Growth Engine for Indian Economy'. MSME is the backbone for realizing the 'Atmanirbhar Bharat' initiative. For this session, the focus sectors that have been identified are Furniture, Leather & Footwear, Gems & Jewelry, Textiles, Food Processing. The session moderator is Shri Vinod Kumar, President, India SME Forum. This session will conclude with remarks from concerned Secretaries in M/o Micro Small and Medium Enterprises, M/o Food Processing Industries and M/o Textiles. Industries Principal Secretaries of States of Haryana, Madhya Pradesh, Assam and Tamil Nadu will deliver remarks in the session.

 

The closing session will witness the Presentation of Action Plans by the three senior Industry leaders, i.e, the Session Moderators, on the outcomes and the way forward.

The United States has said it will lead efforts to craft a trade arrangement in the Indo-Pacific region that would include provisions on high-standard labour commitments, environmental sustainability, cooperation in the digital economy, and sustainable food systems.

 

In its trade policy agenda for 2022, the US Trade Representative said that the specific content of the trade arrangement will be developed through extensive consultation with trading partners, a broad base of stakeholders, and the Congress.

 

Referring to the Indo-Pacific Economic Framework, the USTR said: 'We will use this framework to address a range of important areas of economic cooperation, including: fair and resilient trade (including labour, digital and other elements); supply chain resilience; infrastructure, decarbonization, and clean energy; and, tax and anti-corruption'.

 

The US had last year indicated that it is not in favour of inking new trade agreements. 'USTR will lead efforts to craft a trade arrangement with parties that includes provisions on: high-standard labour commitments, environmental sustainability, cooperation in the digital economy, sustainable food systems and science-based agricultural regulation, transparency and good regulatory practices; competition policy and trade facilitation,' it said.

 

Last year at the India-US Trade Policy Forum, New Delhi agreed to allow imports of American pork and pork products.

 

'In 2022, USTR will continue to work with India to finalise market access for cherries and alfalfa hay,' it said.\

 

On the issue of Digital Services Tax (DST), the USTR said that it is prepared to examine all options if other countries move forward with new taxes.

 

India introduced a digital service tax called equalisation levy in 2016 on online advertisements whose scope was then widened to impose a 2% tax on non-resident e-commerce firms with a turnover of Rs 2 crore.

 

Last year, the US reached agreements with India, Turkey, Austria, France, Italy, Spain, and the UK suspending the application of DSTs during the interim period prior to full implementation of Pillar 1 of the OECD framework.

Tunisia's state grains agency has issued an international tender to purchase about 75,000 tonnes of durum wheat, European traders said on Tuesday.

 

The grain can be sourced from optional origins. The deadline for submission of price offers in the tender is Wednesday, March 2.

 

The durum is sought in three consignments of 25,000 tonnes with shipment periods depending on the origin supplied.

 

Shipment is between April 1-20 if sourced from the Mediterranean region/south Europe, between March 25-April 15 if from West Europe or between March 20-April 10 if from the United States, Canada or South America.

 

Algeria’s state grains agency has also issued a tender to buy durum closing on Wednesday.

The Government of India is actively considering creating buffer stock for edible oil. The Government has shown positive inclination towards setting up buffer stocks of edible oil, given the steep price rise witnessed in the last three years.

 

According to edible oil traders, while holding talks with the Government on the situation that arose out of the price rise of edible oil, the traders have suggested the creation of buffer stocks in line with the buffer for food grains.

 

Shankar Thakkar, president of the All India Edible Oil Traders’ Association, has stated that creation of buffer stock was suggested to the Government to ease out the pressure put on domestic edible oil prices due to international causes like the Russia–Ukraine war or bad weather impacting the oil seed production.  

 

The edible oil traders say that the measures taken by the government to increase domestic production would take time to yield results and therefore to stabilise the prices, buffer stock was needed.  

 

Thakkar has said that to arrest the price rise, the Government can take immediate steps like asking the importers to sell edible oil on purchase price.

 

India imports 80% sunflower oil from Ukraine and Russia and both countries are now engaged in a military action. The supplies will be hit till the situation gets normal.

 

The prices of sunflower oil have already witnessed a steep rise ranging from 35-40%, soybean 30-35%, while palm oil has witnessed a rise of close to 25% in the recent past. The retail prices of these oils are also hovering between Rs 150 and 200 per litre.

 

The traders also reiterated their demand for removing the stock limit on edible oil to ease out the oil trade.