The Prime Minister, Shri Narendra Modi addressed a webinar on the vision of GatiShakti and its convergence with Union Budget 2022, today. This is sixth webinar in the series of post budget webinars addressed by the Prime Minister.

 

The Prime Minister said that this year’s budget has set the pace (Gatishakti) of India’s development in 21st century . This direction  of ‘Infrastructure-based development’ will lead to extraordinary increase in the strength of our economy, creating many new possibilities of employment, he said.

 

The Prime Minister, underlined the lack of coordination among the stakeholders in the traditional ways of completing projects. This was due to lack of clear information among the various concerned departments. 'Due to PM Gatishakti, now everyone will be able to make their plan with complete information. This will also lead to optimum utilization of the country's resources', he added.

 

The Prime Minister stressed the need of PM Gatishakti by emphasizing the scale at which the government is undertaking infrastructure development. 'In the year 2013-14, the direct capital expenditure of the Government of India was about two and a half lakh crore rupees, which has increased to seven and a half lakh crore rupees in the year 2022-23', the Prime Minister informed. 'Infrastructure Planning, Implementation and Monitoring will get a new direction from PM Gati-Shakti. This will also bring down the time and cost overrun of the projects', he added.

 

Shri Modi said 'Strengthening the principle of cooperative federalism, our government has made a provision of one lakh crore rupees for the assistance of the states in this year's budget. State governments will be able to use this amount on multimodal infrastructure and other productive assets.' He mentioned National Ropeway Development Programme to improve connectivity in the inaccessible hilly areas and Prime Minister's Development Initiative for North-East (PM-DevINE) in this regard. Mentioning PLI initiative, the Prime Minister called upon the private sector to invest I the infrastructure of the country.

 

The Prime Minister informed that in PM Gati-Shakti National Master Plan, more than 400 data layers are available now, informing not just the existing and proposed infrastructure but also information about the forest land and available industrial estate. He suggested that the private sector should use it more and more for their planning and all important information regarding the National Master Plan is now available on the single platform. 'Due to which it will be possible to get project alignment and various types of clearances at the DPR stage itself. This will also be helpful in reducing your Compliance Burden', he said. The Prime Minister also asked the state government’s to make PM Gati-Shakti National Master Plan base for their projects and Economic Zones.

 

The Prime Minister commented that 'even today, the Logistic Cost in India is considered to be 13 to 14 percent of GDP. This is more than other countries. PM Gati-Shakti has a huge role in improving infrastructure efficiency'. The Prime Minister talked about Unified Logistic Interface Platform- ULIP provided in this budget and which is being adapted by the various government departments as per their needs, leading to reduced logistics cost. '24 Digital Systems of 6 Ministries are being integrated through ULIP. This will create a National Single Window Logistics Portal which will help in reducing the logistics cost', he added.

 

The Prime Minister informed about the steps like Logistics Division in every department and Empowered Group of Secretaries for logistics efficiency through better coordination. 'Our Exports will also be greatly helped by PM Gati-Shakti, our MSMEs will be able to be Globally Competitive', he added.

 

The Prime Minister said that Gati-Shakti will ensure true public-private partnership in infrastructure creation from infrastructure planning to development and utilization stage. 'In this webinar, there should also be a brainstorming on how the private sector can achieve better outcomes in collaboration with the government system', Shri Modi said.

The Food Safety and Standards Authority of India (FSSAI) has decided to extend the permission to import food products for Inborn Errors of Metabolism (IEM) until further orders.

 

Imports of IEM foods listed by the FSSAI were allowed till March 31, 2022, through a notification in 2021.

 

FSSAI in an order stated, 'The Food Authority has approved the list of IEM conditions. The list will come into effect from 1st April 2022. Till such time, the direction issued on 30.06.2021 will continue to be in force'.

 

The food authority was approached by the stakeholders seeking clarity on the issue related to the import of IEM food products.

 

Under the FSS (Food for Infant Nutrition) Regulation 2020, no food business operator shall manufacture, market or import products for IEM conditions except those specified by the food authority.

 

In the June 2021 direction, FSSAI has also laid conditions for the import of such food products.

 

The importing firm would submit to FSSAI well in advance, all the necessary documents related to the composition, label and claims for the product they intend to import. FSSAI after due examination, would allow the import of such foods on a case to case basis.

 

Also, labels on these foods shall clearly mention the medical conditions for which they have to be used while the importer or manufacturer of such foods shall ensure that they are consumed only under supervision of health care professionals.

The export of guavas from India sees a growth of 260% since 2013. Exports grow from USD 0.58 Million in April-January 2013-14 to USD 2.09 Million in April 2021-22. 

 

India’s export of fresh fruits has also witnessed considerable growth. Fresh Grapes is the largest exported items among all fresh food category. During 2020-21, the export value of Fresh Grapes was USD 314 million. Export of other Fresh Fruits stood at USD 302 million, Fresh Mangoes at USD 36 million and Others (Betel Leaves & Nuts) at USD 19 million. During 2020-21, Fresh grapes and Other Fresh Fruits accounted for 92 per cent in India's total export of Fresh Fruits. 

 

India's major exporting destination of fresh fruits during 2020-21 were Bangladesh (USD126.6 million), Netherland (USD 117.56 million), UAE (USD 100.68 million), UK (USD44.37million), Nepal (USD33.15million), Iran (USD32.54million), Russia (USD32.32million), Saudi Arabia (USD24.79million), Oman (USD22.31million) and Qatar (USD16.58million). Top ten countries accounted for 82 per cent in India's export of fresh fruits in 2020-21. 

 

The export of curd (yogurt) and paneer (Indian cottage cheese) has also seen a tremendous growth of 200% from USD 10 Million in April – January 2013-14 to USD 30 Million in April-January 2021022

 

It may be noted that dairy export is growing at a Compound Annual Growth Rate of 10.5 per cent in the last five years.  In 2021-22(April-November), India exported USD 181.75 million worth of dairy products and in the current financial year, it is set to surpass the previous year’s export value.

 

India's major exporting destination of dairy products in 2020-21 were UAE (USD39.34 million), Bangladesh (USD24.13 million), U S A (USD22.8 million), Bhutan (USD22.52million), Singapore (USD15.27million), Saudi Arabia (USD11.47million), Malaysia (USD8.67million), Qatar (USD8.49million), Oman(USD7.46million) and Indonesia (USD1.06million).  Top ten countries accounted for more than 61 per cent share in India's dairy export in 2020-21.

Piyush Goyal, Union Minister of Commerce and Industry, has urged the Indian spices industry to strive to make the spices sector the flag bearers of Indian exports and focus on developing unique Indian spice brands globally.

 

He was inaugurating the coral jubilee celebrations of the Spices Board through a hybrid meeting.

 

The Minister congratulated the spices farmers and exporters citing 'in these challenging pandemic times, the world took note of the age-old and time-tested practices of Ayurveda that involved the use of spices in medicinal concoctions and our spices farmers and exporters deserve applause for their contributions'.

 

Goyal formally released the postal stamp to mark the coral jubilee celebrations and also launched the weather-based insurance scheme for small cardamom.

 

While launching the insurance scheme, the Minister suggested extending similar schemes to crops across India. While emphasizing on the need for ensuring food safety and quality, he called for collective efforts of all the stakeholders to take the goodness of intrinsic Indian spices such as Kashmir Saffron, Naga Chilli, Lakadong Turmeric and UP’s Kalonji to international markets.

 

The Minister appreciated the Spices Board for its proactive interventions while working with all categories of stakeholders, trade promotion and regulatory bodies of importing countries and inter-governmental organizations which has propelled the Indian spice industry to reach $ 4-billion mark.

 

Later in a live interaction with spice farmers and exporters, the Mminister assured continuous support of the Government for further development of the sector. 

 

A G Thankappan, Chairman, Spices Board presided over the function.

 

D Sathiyan, Secretary, Spices Board pointed out that 'the coral years celebration of Spices Board comes at the juncture when spices exports have surpassed $4.18 billion. 'I can proudly say that exports of spices have come a long way and have surged to this landmark in 2020-21 from $ 229 million in 1987'.

Revenue of India’s organised dairy industry will rebound by 12% this fiscal to Rs 1.6 lakh crore, compared with a decadal low growth of 1% last fiscal, riding on strong demand recovery in most value-added dairy products (VAP), steady liquid milk sales, and retail price hikes during the fiscal, according to Crisil Ratings.

 

The rating agency said that the steady demand for both VAP (around one-third share of organised sector sales) and liquid milk (around two-thirds share) is likely to lead to 5-6% growth next fiscal, too, in line with the pre-pandemic trend. More potential retail price hikes provide further upside. Operating profitability, however, will be set back to the pre-pandemic level of 5-5.5% in the next two fiscals — from the peak of 6% seen in fiscal 2021 — because of high raw milk prices, along with higher transportation and packaging costs, and despite dairies increasing retail product prices by 3-4% across categories this year.

 

While milk availability has increased in the ongoing flush season, but it is still not sufficient to meet the healthy demand for VAP, leading to high raw milk prices. That being said, better revenue growth and near-stable operating profits, along with well-managed balance sheets, will lead to a ‘stable’ credit outlook for dairy players.

 

A CRISIL Ratings analysis of 57 rated dairies, which account for nearly two-thirds of the organised segment revenue of Rs 1 lakh crore, indicates as much. Milk is consumed in two forms – liquid and VAPs. Dairies convert liquid milk into skimmed milk powder (SMP) for use in the lean season, when milk supplies decline. SMP can be reconverted into liquid milk or VAP and has a shelf life of 12-18 months. Demand for VAPs such as ghee, butter, cheese, curd, and SMP saw strong recovery amid the festive and wedding season in the third quarter of this fiscal, and reopening of commercial establishments on a pan-India basis.

 

Anuj Sethi, Senior Director, CRISIL Ratings said, 'VAP sales growth is expected to be 17-18% this fiscal on a lower base of last fiscal. This, in turn, will be driven by strong volume growth of 13-14% as hotels, restaurants and café (HORECA segment, accounting for 20% of organised sector sales) have opened up, and festive and wedding celebrations, as well as home consumption have increased. The second and third Covid-19 waves have had no material impact on most dairy segments, with food-delivery services and eateries continuing to function despite local restrictions.'

 

That said, the first and second Covid-19 waves had coincided with peak summer season for ice-creams (14% of overall VAP sales) and partially impacted demand. On the other hand, liquid milk sales volume is expected to remain steady at 6% this fiscal. That, coupled with retail price hikes already taken, would lead to sales growth of 10% this fiscal.

 

Tanvi Shah, Associate Director, CRISIL Ratings said, 'About 70-75% of the working capital requirement of dairies is towards SMP inventory, which is expected at higher levels compared with the pre-pandemic period due to steady milk procurement this flush season. However, well managed balance sheets and near-steady operating profits would lead to stable credit outlook for dairy players. We expect key debt metrics such as gearing and interest coverage ratio2 to remain comfortable at 1.2 times and 6.5 times, respectively, in the near term.

 

The commerce ministry has made it mandatory for exporters to file registration-cum-membership certificate (RCMC) applications through a common digital portal, a move aimed at promoting ease of doing business for the trading community.

 

According to the Foreign Trade Policy, a Registration-cum-Membership Certificate (RCMC) is required for exporters in order to avail benefits under the policy. Holding the certificate can also help exporters in availing benefits with respect to customs and excise.

 

The certificate is issued by export promotion councils, and commodity boards.

 

According to a communication of the Directorate General of Foreign Trade (DGFT), the electronic platform to facilitate electronic issuance/renewal/amendment of RCMC/registration certificate (RC) has been implemented.

 

The objective of the platform is to provide an electronic, contact-less single window for RCMC/RC related processes.

 

'It is informed that from April 1, 2022, it will be mandatory for the exporters to file RCMC/RC applications (for issue/renewal/amendment) through the common digital portal of e-RCMC platform,' the communication sent to all exporters, members of trade, regional authorities, export promotion councils and commodity boards.

 

It has stated that the prevailing procedure of submitting applications directly to the designated registering authorities will continue only till March 31 this year.

 

All regional authorities have been requested to ensure that they are on board on eRCMC portal before March 31.

 

They have also been advised to conduct outreaches and issue suitable advisories to the members/exporters to use the platform.

The Centre will soon integrate six online portals with the electronic National Agriculture Market (eNAM), a move that is seen not only as boosting trading volumes, but also providing farmers better price discovery to sell their produce. This follows the success of e-NAM nationally.

 

Also, this may help remove one of the major bottlenecks in online trading – the quality guarantee of the produce – after roping in assaying and certification agencies.

 

The total transactions over e-NAM stood at ?42,163 crore during April-January this fiscal, against ?31,366 crore for the 2020-21 fiscal. This fiscal’s transactions hit a record high since its launch in 2016.

 

‘Never wanted monopoly’

 

'We never wanted a monopoly for e-NAM. Our aim is better price discovery for farmers and by leveraging the expertise of others, it will be a win-win for both buyer and seller on the integrated platform,' said Neelkamal Darbari, managing director of the Small Farmers’ Agri-Business Consortium (SFAC).

 

The new initiative will also offer transportation, warehousing, quality assaying, storage, fintech and agri-advisory services, in which over 15 firms have expressed their willingness to join, Darbari said. 'This will enable farmers, farmer producer organisations (FPOs), traders, and other stakeholders to access a larger market ecosystem through a single window,' she said.

 

The number of platforms will increase when the expressions of interest (EOI) are opened, sources said.

 

More choices

 

The new initiative will enable the integration of other public and private trading and service providing platforms of the entire agriculture ecosystem through APIs. Post this integration, farmers and FPOs of e-NAM and other platforms will be able to upload their produce to more buyers across the portals. This will provide farmers more choices and help better price negotiation for their produce, she said.

 

SFAC, a society under the Agriculture Ministry, has been tasked to work for increasing the income of small and marginal farmers through aggregation and development of agri-business. Besides e-NAM, it is also the main implementing agency for creation of 10,000 additional FPOs.

 

Currently, e-NAM has connected 1,000 mandis across the country, whereas the online platforms developed in the private sector are mostly limited to specific geographies or commodities. Besides, e-NAM platforms are also operational at FPO premises in certain States which allow them. Even if transactions are done through e-NAM, mandi fees are payable as per local rules in each State. While some States such as Rajasthan follow uniform fees across all mandis, though charges vary from commodity to commodity, some others like Gujarat have allowed APMC to decide the market fees.

 

'Depending on the success of the new initiative, the next step will be to convince States to exempt mandi fees for transactions done through the electronic platform,' a source said. The government, either Centre or State, may also think of bearing operational costs if farmers get the benefit, the source said.

 

Private expertise

 

Until now, about 1.72 crore farmers, 2 lakh traders and 1 lakh commission agents have been registered on the e-NAM platform. Though the base of the private entities which will join the new initiative is low compared to e-NAM, Darbari said, they (private sector) may have some other expertise which e-NAM farmers will get the benefits after the integration.

 

'As technology infusion in agriculture grows with adoption of artificial intelligence (AI) and other tools, there would definitely be changes coming in the conventional way of trading. However, a major task that is yet to be accomplished is to bring reforms at the State level so that inter-mandi and inter-state transactions go up,' said Darbari.

Secretary, Department of Food & Public Distribution (DFPD), under Ministry of Consumer Affairs, Food and Public Distribution, chaired a meeting of State Food Secretaries and Food Corporation of India (FCI) through Video Conference here today, to discuss the procurement arrangements for ensuing Rabi Marketing Season (RMS) 2022-23 and Rabi crop of Kharif Marketing Season (KMS) 2021-22.

 

A quantity of 444 LMT wheat has been estimated for procurement during the forthcoming RMS 2022-23, which is more than procurement estimate of previous year RMS 2021-22. 

 

Also, a quantity of 42.92 LMT rice (rabi crop) has been estimated for procurement during the forthcoming rabi crop of current KMS 2021-22 from seven rice (rabi crop) procuring States. Estimate of procurement of rice (rabi crop) from State Governments of Maharashtra, Tamil Nadu and Telangana is awaited.

 

During the meeting, promotion of coarse grains, implementation of minimum threshold parameters for online procurement operations, supply of jute bags & packaging material, storage space, improving efficiency & transparency in procurement operations and online settlement of food subsidy claims were also discussed.

The General Authority For Supply Commodities (GASC) announced - on behalf of the Ministry of Supply and Internal Trade - a new international tender to import wheat.

 

In a statement on Saturday, the authority said that shipments are scheduled on April 13-26.

 

Earlier, Minister of Supply and Internal Trade Ali el Moselhi said the strategic stockpile of wheat in Egypt is enough for more than four months.

At a meeting in Brussels, the European Union Ministers of Agriculture, confirmed the EU's commitment to the work of Codex, and underlined the need for sustainability considerations to be given greater prominence in the setting of food safety standards for international trade.

 

In the conclusions approved at the Agriculture and Fisheries Council, Ministers recognised the central role of the Codex Alimentarius Commission (CAC), in facilitating the transition to sustainable food systems and reaffirmed the EU's determination to maintain fair trade practices and health-protective standards. They also underlined the EU's willingness to explore, with its partners, all pragmatic ways to integrate sustainability considerations into the work of the CAC, in line with the commitments made by its members at international level.

 

Julien Denormandie, French Minister for Agriculture and Food, said, 'As a member of the Codex Alimentarius Commission, the European Union plays a key role in ensuring high standards for internationally traded food products. It is necessary to add an environmental dimension to these standards, in order to successfully make the transition to sustainable food systems.'

 

In its conclusions, the Council recognised the essential work of Codex in ensuring that food products meet the highest possible safety standards. However, it recognised that Codex must evolve to meet recent developments, including increased environmental challenges and changing consumer expectations regarding health, food and nutrition. Ministers also asked the CAC to improve the coordination of standardisation work between international and intergovernmental organisations.