To further expand its footprints in South America, India has opened a permanent diplomatic mission located in Asunción, Paraguay. The new ambassador Yogeshwar Sangwan, has earlier this month presented at the National Chancellery, copies of his Letters of Credence to the Deputy Minister of Foreign Affairs, Ambassador Marcelo Scappini Ricciardi.

 

According to a top diplomat, 'Ambassador Sangwan is the first envoy posted and the opening up of a permanent mission in Asunción, is a reflection of the mutual desire of the two countries to deepen the existing relations.'

 

Importance of the new mission

This is the second mission in the region to be opened in 2022. The first was in the Dominican Republic and now Paraguay. The focus of the new mission will be to work towards enhancing cooperation in different sectors like trade, infrastructure, education, technology, security solutions, IT, cyber crimes, space cooperation, tourism, agriculture, virtual courts,  and cultural ties.' There is also an opportunity in pharmaceuticals, security solutions and providing teachers for teaching English.

 

Talking to Financial Express Online, Ambassador Yogeshwar Sangwan said 'The focus will be for strengthening cooperation in fields like trade, tourism, animal husbandry, yoga, and much more.'

 

India-Paraguay Space Cooperation

The South American nation created its own Space Agency in 2014 and very recently its own space policy. This is one country in the region which is not maintaining official relations with China. Space cooperation will be one area where both sides can work together.

 

As reported by Financial Express Online in 2019, at the end of the bilateral meeting between Vice President M Venkaiah Naidu and his Paraguayan counterpart Vice-President, Hugo Velázquez, both sides talked about cooperation between the space agencies of both countries in various areas like launching of satellites on commercial basis,  mapping resources, exchange of earth observation data, personalized training on specific areas of space technology application, support for natural disaster management and much more.

 

Predictive surveillance via drones (smart aerial vehicles)

 

The South American nation is looking to India for procuring Smart aerial vehicles, which will be used for gathering real-time Intelligence, surveillance and ISR reconnaissance information. This information as reported by Financial Express Online earlier can help in covering larger territories along the border and identify criminal activities and prevent crimes.

 

This will also be a market for Indian companies to provide body amour, night vision devices, drones as well as related equipment.

 

India-MERCOSUR Trade Agreement

 

Paraguay is one of the member countries and is currently holding the Pro Tempore Presidency of the bloc (PPTP 2022). Other countries of Mercosur grouping are Brazil, Argentina and Uruguay.

 

India and Mercosur are in talks for expanding the existing Preferential Trade Agreement (PTA) between the two sides. Due to the global pandemic of COVID-19, the negotiations were put on hold. And now with a new Indian mission and an envoy posted in Paraguay, it will be easier for all parties to work together.

 

Also, as reported earlier, there are differences that need to be resolved among the member countries and then only the negotiations are expected to move forward.

 

Last week, the XIX Meeting of the Mercosur External Relations Group was held under the presidency of Paraguay, and delegations from Uruguay, Brazil and Argentina were present. The meeting focused on several issues including planning meetings for negotiations and commissions for implementation of agreements with countries like Ecuador, European Union, Dominican Republic among others. 

 

The member countries agreed to prioritize the negotiations in an effort to fulfill the objective of the internationalization of Mercosur.

 

Why expansion of India-Mercosur PTA?

 

It will help in achieving a trade target of USD 30 billion by 2030. And the expansion will help in further strengthening trade relations between the two countries.

India and UAE have been strategic partners right since diplomatic ties were established in 1972. The two nations signed the historic Comprehensive Economic Partnership Agreement (CEPA) during the virtual summit meeting between Prime Minister Narendra Modi and Sheikh Mohamed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi on February 18, aimed at boosting the merchandise trade between the countries to $100 billion over the next five years.

 

The agreement is set to benefit almost 90 per cent of the trade, both exports and imports, between the two countries. The free trade pact will be further deepened over the next decade with the UAE set to eliminate import duties on 97 per cent of tariff lines in the next five years, while India will bring down tariffs to zero on 90 per cent of items over ten years.

 

In a first of its kind, there is a digital trade element to enhance cooperation in paperless trading, digital payments and online consumer protection. Bilateral trade volumes would increase manifold when two-way investment flows pick up. The CEPA proposes an investment zone in India Mart at the Jebel Ali free zone. The bilateral trade between India and UAE $43,318.41 million with exports of $16,695.42 million and imports of $26,622.99 million. There was a negative trade balance to the tune of $9,927.57 in 2021- 22.(Source: DGCIS).

 

commodities in the UAE

In India’s export of principal commodities of all agri products, UAE is the 4th largest export destination(value: $1865.82 million, quantity: 20,61,039.77 tonnes) with the share of 5.23 per cent in the current year 2021-22 (April-December) in the global market. The major products exported from India during the referred period are sugar, basmati rice, spices, marine products, miscellaneous processed items, wheat, fresh fruits, cashew, buffalo meat, non-basmati rice etc.

 

During this current period, UAE was the top destination and ranked first for major agri product exports namely alcoholic beverages, cashew, fresh fruits, sheep/goat meat, tobacco manufactured, pulses etc. UAE being the leading bilateral partner for India, it has also been observed that in India’s export of principal commodities, UAE dominated in the top five countries during the current year 2021-22 (April-December) in the export destination of basmati rice, cereal preparations, dairy products, floriculture, fresh vegetables, fruits/ vegetable seeds, milled products, misc. Processed items, other cereals, processed fruits and juices, processed meat, spices, sugar, tea, vegetable oils, wheat etc.

 

During the last decade, UAE had been the second-largest export destination of India’s export of all principal agri commodities. There had been a 5 per cent duty for a few commodities which made India uncompetitive compared to the products UAE imported from other competitive countries. The free trade agreement (FTA) and duty concessions will provide scope for Indian manufacturers to compete in the UAE market resulting in exponential growth in India’s export to UAE and will also pave the way to tap the opportunities in other Gulf Cooperation Council countries.

 

Export of APEDA’s scheduled products in the UAE market agri exports from India had been growing gradually to the UAE market, export of APEDA’s scheduled products had grown from $69.52 million (quantity 1,01,971.95 tonnes) in 1987-88 to $1,238.50 million (14,72,561.09 tonnes) in 2020-21. 

 

Status of UAE in major importing countries

 

In the current year, 2021-22 (April-November 2021-22), the UAE is the second-largest importing country with a share of 6.4% in the export of APEDA’s scheduled products (value:$971.61 million; Quantity: 11,96,144.54 tonnes). In the export of APEDA’s scheduled products to major importing countries, the UAE was the second-largest importer.

 

Star products in the export of APEDA’s scheduled products

There is a shifting paradigm in the export of agri products to UAE, the top ten potential products exported to UAE has been changing trends paving the way to new additional products in the last few decades, conclusively giving ample opportunities for a range of 15-20 products to put on a strong foothold in UAE market. The current trade pact will reduce 5 per cent import duty for Indian products in the UAE market, making us better off than other competitors. The prime products with ample export opportunities in the UAE market are basmati rice, non-basmati rice, buffalo meat, sheep/goat meat, miscellaneous preparation, fresh onions, pulses, fresh mangoes, alcoholic beverages, cereal preparations, milled products, dairy products, mango pulp, bananas, grapes etc. 

 

In furtherance of the UAE India Food Security Corridor initiative, the Government of India, through APEDA, has signed an MoU with Government of UAE through its nodal agency Al Dhara Holding SP LLC for procurement of food and food products from India as well as to sell to buyers in UAE as a part of UAE food security strategy and DP World FZE, a subsidiary of Government of Dubai (A leading provider of worldwide smart end-to-end supply chain logistics, enabling flow of trade across the globe).

 

The MoU signed between both the countries will promote the exports from India to UAE and strengthen the trade further between both the countries. India’s Agri Export to UAE was $1926.19 million in 2020-21.

 

Opportunities for APEDA’s scheduled products in UAE market

 

Buffalo meat was one of the prime products exported to the UAE. Being the largest producer of buffalo meat, India will now be in a better position with the current CEPA to increase further share in the UAE market. In the export of APEDA’s scheduled products to UAE, India ranks first with a share of 10 per cent in 2020. India is the leading supplier of rice with a share of 72.15 per cent, fresh onions(India’s share 45.84 per cent), fresh grapes (India’s share 18.7 per cent), milled products (India’s share 51.06 per cent), fruits and vegetable seeds (India’s share 32.16 per cent), guar gum(India’s share 60.33 per cent), albumin (eggs & milk)(India’s share 16.93 per cent).

 

India is looking to tap ample opportunities to export buffalo meat, dairy products, cucumbers and gherkins, miscellaneous preparations, processed food, alcoholic beverages, natural honey etc. The sensitive items include dairy, fruits and vegetables, cereals, food preparation etc. With diverse climatic conditions, India is the second-largest producer of fruits and vegetables in the world, is in an advantageous position to march ahead with the current CEPA signed with the most potential export nation and tap the UAE requirements further with MoUs with DP World and Al Dhara. 

 

India’s performance is also linked to diversification of fruits and vegetables into value-added diversified products. The products are rising up along with changing export trends and global demand for organic and nutritious products such as ginger, turmeric, moringa, jackfruit and jackfruit based products, high value-added product saffron from J&K had already been promoted in the UAE market.

 

APEDA is constantly expanding the export basket by adding innovative products such as pomegranate arils, jackfruit, dragon fruit, drumstick, chilled baby corn, snow peas, along with organic herbs, turmeric spices, dehydrated vegetables etc along with a focused approach to increasing the export of millets. The organic exports to UAE have also witnessed a growth of appx 61 per cent in terms of export value in US$. With the strategic significance of India UAE CEPA, APEDA, with its 49 per cent share in India’s agri exports, will have a significant share in the proposed $100 billion bilateral trade with the demand for potential products in the UAE market along with the promotion of additional new innovative products in APEDA’s agri export basket.

The Ministry of Food Processing Industries (MoFPI) has issued a notice for continuation of the Central sector scheme PM Kissan Sampada Yojna (PMKSY) for the period 2021-22 to 2025-26 ‘coterminous’  with the 15th Finance Commission cycle.

 

MoFPI was informed by the Union Finance Ministry that the Union Cabinet has approved continuation of the Central sector umbrella scheme of PMKSY implemented by the MoFPI with an allocation of Rs 4,600 crore till March 31, 2026, or till further review, whichever is earlier.

 

PMKSY is a comprehensive scheme for creation of modern infrastructure with efficient supply chain management from farm gate to retail outlet.

 

An official statement by the MoFPI, says, 'It will not only provide a big boost to the growth of food processing sector in the country but also help in providing better prices to the farmers, creating employment opportunities, reducing wastage of agricultural produce and increasing the processing level and enhancing the export of the processed foods.'

 

According to the notice issued by the MoFPI, the schemes that would continue under PMKSY include integrated cold chain and value addition infrastructure, creation of infrastructure for agro processing clusters, creation/ expansion of food processing and preservation capacities, food safety and quality assurance infrastructure, human resource and institution, research and development and Operation Greens.

 

MoFPI added that PMKSY is expected to leverage investment of Rs 11,095.93 crore, benefiting around 28.49 lakh farmers and generating close to 5.5 lakh employment (direct/indirect) by 2025-26.

The rising prevalence of obesity among the population is boosting the demand for and consumption of low calorie confectionery products.

 

What are confectionery products?

 

In simple words, sugary and carbohydrate-rich foods are known as confectionery. Bakers' confections and sugar confections are the two major and somewhat overlapping types of confectionery.

 

Sweet pastries, cakes, and other baked delicacies are included in bakers' confectionery, often known as flour confections. Candies, candied nuts, chocolates, chewing gum, bubble gum, pastillage, and other sugar confections are examples of sugar confectionery. Chocolate confections (chocolate-based confections) and sugar-free variants of sugar confections are sometimes classified as independent categories.

 

Sugar confectionery, as the name implies, has a lot of sugar, and it can be any kind of sugar. Sucrose, invert sugars, and glucose syrups are the main ingredients in sugar confectionery. Sugar confections are divided into two categories: boiled sweets and fondant. Boiling sweets are ‘sugar and water boiled at such a high temperature (150–166 °C) that practically no water remains and a vitreous mass forms on cooling’, whereas fondant is ‘minute sugar crystals in a saturated sugar syrup; used as the creamy filling in chocolates and biscuits and for decorating cakes’.

 

Sweets that have been cooked Fruit drops, acid drops, barley sugars, hard gums, toffee, butterscotch, and caramel are among the products in the set of products. The sugar in fondants is in its crystalline form. Chocolate centres, fudge, marzipan, coconut paste, and chews are examples of products. The presence of glassy material is considered a flaw that causes hardness. Ripening is required on occasion.

 

Confectionery products are a vast group of high-calorie snacks that are popular among various population groups, particularly children. Confectionery, on the other hand, has low physiological value as a source of important nutrients. They are high in fat and carbohydrates, the majority of which is sucrose and starch, with very little protein.

 

The energy value ranges from 350 to 528 kcal and is mostly determined by the items used in the recipe (flour, egg, and milk products, various additives—nuts, soybeans, and others.) Excessive use of these products throws the dietary balance off in terms of nutrients and energy content. Confectionery has a big disadvantage in that it lacks vital biologically active ingredients such as vitamins, carotenoids, micronutrients, and macro elements.

 

A healthy choice, a healthier life

 

Over the last few years, there has been a considerable increase in concern over rising obesity rates and their associated health effects, such as diabetes. The prevalence of high-calorie fast foods and beverages, as well as confectionary products, is contributing to this increase in body weight, with consumers seeking both speed and convenience in their dining experience.

 

There has been a shift in the way people select products. Consumers are somewhat more likely to buy a low-sugar choice than a sugar-free alternative in every category. To reduce or maintain weight, people are opting for lower-sugar choices. People are making these decisions and choices because they are worried about diabetes and the harm it poses to their health.

 

Reducing added sugar necessitates reconsidering milk flavourings as even natural fruit flavours can contain sugar, and many popular tastes, such as chocolate and caramel, rely on sugar for their sweet taste.

 

What goes through customers' heads when they're looking for a sweet treat that's low in calories?

Consumer interest in low- and no-sugar foods is widespread, and awareness of the negative health effects of excessive sugar consumption is widespread and growing, particularly in emerging consumer markets. Despite the fact that customers' reported purchasing behaviour varies significantly by category, the popularity of low- and no-sugar options demonstrates that they still want to be able to enjoy sweet-tasting products.In short, they don’t want to compromise on the taste and are trying to find an alternative ingredient.

 

Starting with the ingredients, we also find a significant shift away from ordinary flour (maida), and toward whole wheat, multigrain, and enriched flours. Although Indians learned to bake from Europeans, who used all-purpose or plain flour, the time has come for Indians to bake with whole wheat flour, which is healthier and richer in nutrients for consumption.

 

Many major retail chains now offer food courts that include bakeries and cake stores. More luxury items with reduced fat, better appeal, and better taste, as well as more natural or organic ingredients such as multigrain, fresh fruits, chocolate, or milk, are preferred by shoppers. End-consumer food preferences are rapidly evolving in order to keep up with shifting demand.

 

The customer base must adapt their minds and taste buds to accept a healthier alternative. This means that changing the core ingredients, methods, techniques, and equipment will affect the service and marketing strategies.

 

Low-calorie sweeteners are sugary substances with no or very few calories. They aid in the management of blood glucose levels in diabetic individuals. They're also the main ingredient in any low-calorie sweet delight.

 

Many low-calorie sweet treat producers have started producing new low-calorie sweet treat variants with extra health advantages. The business is also focusing on providing nutritious items with reduced fat and calorie content. This may include more usage of honey and jaggery as an alternative to sugar. Likewise, many other ingredients.

 

The market for low-calorie sweet treats is expected to grow as consumers become more aware of the product's health benefits and as health conditions such as overweight, obesity, cholesterol, and heart disease become more prevalent. Increasing health awareness and demand for healthier food items are also important factors to consider as low-calorie sweet delights expand in popularity in the coming years.

India and the United Arab Emirates (UAE) on February 18 inked a Comprehensive Economic Partnership Agreement (CEPA) that is being billed as a historic one in many ways. The pact is aimed at providing a major fillip to the trade of goods and services between the nations. The Gulf country is India's third-largest trading partner. The mega deal was signed during a virtual summit meeting between Prime Minister of India Narendra Modi and Crown Prince of Abu Dhabi Sheikh Mohamed bin Zayed Al Nahyan.

 

'This agreement will usher in a new era in our bilateral economic relations and the bilateral trade volume will increase from $60 billion to $100 billion in 5 years," said PM Modi.

 

Commerce and Industry Minister Piyush Goyal asserted that CEPA would provide a fresh impetus to labour-intensive sectors such as gems and jewellery, textiles, leather, footwear, furniture, agriculture and food products, plastics, engineering goods, pharmaceuticals, medical devices and sports goods. Goyal added that there were many firsts in the CEPA agreement. Concluded in a record time of just 88 days, the pact had a permanent safeguard mechanism that can be resorted to in a situation of a sudden surge in imports, along with strict rules of origin that will prevent products from other countries slipping into the CEPA trade route.

 

The CEPA is expected to open vistas of opportunity in trade, both goods and services, and investment between the two countries. UAE is currently India's second largest export destination, after the US. According to official estimates, the India-UAE foreign trade agreement (FTA) may benefit $26 billion worth of domestic goods that are subjected to 5% duty.

 

Our bilateral trade with the UAE is expected to surpass $60 billion in the current financial year. India is the UAE’s number one trading partner for non-oil exports, accounting for nearly 14% of the Emirate’s non-oil exports.

 

The UAE is a major global redistribution centre and much of exports to Africa is routed through Dubai. The FTA will encourage the setting up of warehousing or distribution centres in the UAE for exports to Africa, says the Federation of Indian Export Organisations (FIEO). While the exact tariff concessions would be known only when more specific details are released, the industry body maintains that the CEPA will be extremely beneficial for sectors such as agriculture and processed food, including meat & marine products, gems & jewellery, apparel & textiles, leather & footwear as well as sectors like engineering, organic chemicals, plastics, paper & paper products, iron & steel, electrical and electronics, automobile & auto components and pharmaceuticals.

 

Lots of African buyers come to Dubai and place orders from there itself. So, showcasing Indian goods in the UAE will be a very good strategy, says A Sakthivel, the industry body's chairman. 'Having a large Indian diaspora, the UAE consumes a large quantity of Indian cereals, fruits & vegetables, tea, spices, sugar, etc. Indian companies will gain in services like travel & tourism, transportation, IT & ITES and construction services. The FTA will also open the market to other GCC (Gulf Cooperation Council) countries,' he says, adding this may be used as a template for similar agreements with other GCC countries.

 

The PHD Chamber of Commerce and Industry lauds the government’s move to reduce custom duties on over 1,000 products to zero through the CEPA. The export value of India to UAE in April-December 2021-22 has increased to $20.05 billion from $18.6 billion in 2020-21, with a growth rate of 14.46%, states the chamber. Its president Pradeep Multani calls the deal a 'well-balanced, fair and comprehensive partnership agreement'. The CEPA agreement will open new vistas, especially to labour-intensive Indian products, he says.

 

UAE’s strategic location to open trade vistas

Stakeholders across industries have high hopes from the CEPA. Given the geographical location of the UAE and its proximity to Central Asia and Africa, the CEPA should open doors to numerous untapped trade opportunities for a host of Indian sectors.

 

India's carpet industry, known globally for its fine workmanship, is one segment that sees an obvious and immediate advantage because of the pact. Mahavir Pratap Sharma, Past Chairman, the Carpet Export Promotion Council (CEPC), says the carpet industry would benefit hugely from CEPA as its players can now operate across the Middle East and North Africa (MENA) and across Europe. 'Earlier, one has to go via Istanbul to reach CIS countries and Eastern Europe, which had higher duties. Now, trading with Russia, the CIS and other east European countries will be easier through Dubai. Exporters will contemplate setting up warehouses in Dubai too,' says Sharma, anticipating a quick succession of more such trade deals in the next 6 months.

 

Echoing similar views, MS Mani, Partner, Deloitte India, says collaboration is the buzzword in global trade today. A comprehensive economic partnership would allow India to actively collaborate and leverage its export strengths and meet its import necessities. An economic partnership will open up new markets for Indian manufacturers and MSMEs and expand the visibility of Indian products across those new markets, adds Mani.

 

Need for addressing bottlenecks

To capitalise effectively on the CEPA, the country needs to address some bottlenecks, say experts.

 

Vijay Kalantri, Chairman of trade facilitating body MVIRDC World Trade Centre-Mumbai, points out that though the UAE is the third largest destination of India’s exports, our export basket has a concentration of three items — petroleum products, gems & jewellery and electrical machinery. These account for nearly 50% of our exports to the Gulf country. He suggests that the export basket be diversified with the addition of pharmaceuticals, automobiles and chemicals — areas where India has a competitive advantage. 'Export of consumer goods such as footwear, carpets, umbrellas, textile, toys and game products may also get a boost. In the agro sector, we are already exporting fruits, spices and cereals. Still, there is untapped export opportunity to the UAE, especially in Geographical Indication (GI)-tagged products such as jackfruit, grapes, jaggery, turmeric, honey.'

 

However, the trade expert says, India should be careful while operationalising this agreement else it might lose more than it gains. While the agreement will be mutually beneficial for the both countries, India needs to ensure that goods originating from outside the UAE are not allowed duty-free into India under this treaty. The risk of treaty abuse arises because the UAE is a global transshipment hub and, hence, India should guard against duty-free imports of transshipped products. To ensure abuse of this treaty, our customs officials need to enforce the rules of origin strictly,' he adds.

 

The CEPC’s Sharma says the deal could be harmful to sectors where manufacturing for the domestic market happens in India yet a product exported from, say, Dubai is still cheaper and better. Such a possibility doesn't exist for the carpet and handicraft sector, he adds.

 

Sribash Dasmohapatra, Executive Director of the Plastics Export Promotion Council (PLEXCONCIL), says India’s annual import of plastic raw materials is valued at $14 billion and its plastic-based imports from the UAE is just around $800 million. On the other hand, the Emirate’s global plastics import is valued at $9 billion. But it sources plastics worth only $400 millon from India. So, with inbuilt trade concessions, this 'game changing' CEPA should help the domestic plastics industry.

 

Dasmohapatra says if the country wants to effectively utilise this pact to become self-reliant, it needs to focus on scaling up its capacity-building on a war footing. 'Availability of raw materials and the cost of polymers (a basic raw material for plastic industries) is a big issue. Its high costs make Indian products uncompetitive. Certain raw materials are still not produced in India or are not produced in enough quantities. For example, 50% of our PVC requirement is made here and the rest is imported,' he says.

 

Underling that India's various traditional FTAs lack reciprocity benefits in terms of concessions in tariff rates, Dasmohapatra insists that some of the country’ trade deals need urgent tweaks. 'With the UAE-India CEPA, it is good to see that the government is addressing such policy gaps, and this should be a good template for all upcoming FTAs.'

 

On the same note, Deloitte’s Mani adds: 'While the sectoral impact would vary, it is essential to safeguard India’s interests in services, which have in the past been difficult to safeguard.'

 

Flowers is an emotion business, says Mammen Mappillai, MD of Indo Blooms Ltd and rose farmer from Bengaluru, India who has been growing roses in two of his farms and exporting them for close to 30 years. Starting out as a 32-year-old with no support or information about floriculture Mappillai describes his journey as a 'roller coaster ride' mirroring perhaps India's own burgeoning perishable logistics business.

 

Now hailed as a sunrise sector by the Indian government now, apex trade body APEDA (Agricultural and Processed Food Products Export Development Authority) cites that India exported 15,695.31 tonnes of floriculture products to the world for the worth of Rs. 575.98 Crores/USD77.84millions in 2020-21. The major export destinations included USA, Netherland, UAE, UK, and Germany during the same period. His journey also traces a coming of age of the perishables supply chain for flower logistics in India where the grower/producer, clearing agent, transporter, customs, the airlines, and the consignee make up important cogs in the wheel. Inspired by the Dutch who are experts in floriculture, Mammen's foray in the nineties began with a visit to some of the large Dutch flower auctions including the Aalsmeer Flower auction which is the largest flower auction in the world.

 

'In those days there were no greenhouses in India as the culture was just not there. We found a Dutch consultant and went there, saw their auctions and systems, and were awestruck. We realized that there is a channel and potential to sell this product,' he says. Starting with a single farm in September 1993, Mappillai would earlier grow roses and chrysanthemums but began focussing on roses at a later point owing to water shortages. Today with two farms in Doddaballapur and a staff of 45 people, he grows 15 different colours of roses and cultivates one of the biggies of the rose market - the red roses!

 

However, not all was well in the nascent perishable transport and trade back in the 90s India. 'In the first year, I recall that we had to send the exports to Bombay, clear it in the domestic cargo and then put it on the international cargo from there. There were a tremendous amount of issues related to heating. At the old Bangalore Airport (HAL Airport), there was no perishable centre and few international flights. Instead, they had a 300 sq feet icebox which was not usable and a cool room/port came in much later. Once the airport shifted to Devanahalli, they built up the perishable centre there and now there is a dedicated area with multiple rooms where they can maintain perishables at different temperatures and maintain their efficacy.'

When it comes to flower logistics, two levels of checks are done including the phytosanitary certification and customs clearance before the flowers take to the skies. Mappillai adds, 'Even after the perishable centre at the old Bangalore airport was set up, there was no permanent customs person or X-raying happening in a controlled environment. Flowers had to wait in the hold and customs officials had to come and clear it. Flowers are a perishable commodity and you are responsible for them till it gets sold. So we took it up with APEDA who did tremendous work and in a quick span of 2-3 years they aided in building cool rooms in all the export hubs like Bangalore, Bombay, and Chennai.' Earlier, Mappillai recalls that clearing a consignment of roses would not be done at a cool temperature. He recalls trucks lining up for clearances and signing multiple invoices to ensure all the documents are in place. Batting for digitalization and efficient processes that have streamlined operations at Bangalore International Airport Limited (BIAL), Mappillai avers, 'Now a set number of trucks are docked at BIAL, the shipment is unloaded, held at a certain temperature and inspection happens and in under one hour it is done. Earlier we had to sign multiple invoices, papers, get multiple copies, someone has to run and submit it and if there is some correction, some benefit will get held up. We had to wait for the hard copies to come back after customs signature, whereas now these invoices come automatically into my mailbox and you get the copies of documents within the same day or by the next day. It's all technology at work and it is much better now.' JOURNEY OF THE ROSE Talking about the journey of the rose from the farm to its destination markets, Mappillai reveals that once the roses are cut in the farm, they are then kept in buckets from the harvest stage and these buckets have water of 5 to 7 liters and so only the end of the cut stems are in kept water. Further, the roses are kept in the cold room within half an hour of harvest and they remain for 5 hrs minimum to cool down and hydrate. After hydration and once the rose has cooled down, they are then taken out for grading, bunching, sorting and then are divided into exportable flowers and non-exportable ones. 'We put the roses back in the cold room and they remain there till they have to be shipped out. Normally we pack it, then it goes in a cool truck to the airport and from there it goes to whichever market you are supposed to send it by air. Usually, if this whole cold chain is properly maintained throughout its journey, then it should last a week after it is sold in those markets. Mostly when you buy directly from a farm it lasts longer,' he explains. Mappillai adds, 'We send these roses in dry packs to our consignee in Japan or New Zealand who is our man on the ground. He then processes them and puts them in wet packs and from there they go into auctions and to supermarkets or malls. Each market has different systems and these roses sell at different prices based on that. Roses are a perishable product and one of the most perishable of most perishables. We don't have tomorrows! We used to supply roses to various markets, but now we concentrate on Japan and New Zealand.' AT THE AIRPORT A far cry from yesteryears, the current scenario is such that every facility is present at BIAL including customs clearance and X-ray. 'Now the truck gets unloaded straight into the cold room/ cool port which has a holding temperature and after the official procedures, it goes into a room where it is maintained at 2 degrees. The X-rays and phytosanitary certification is done there. Earlier the phytosanitary had an office in a different building but now they have a permanent centre at the airport and most of the inspection happens there. With respect to the phytosanitary certification, the protocol varies from country to country,' Mappillai shares. According to the APEDA's data for FY 2020-21, Bangalore Airport is the leading airport for flower exports in India and for the handling of perishables. One out of every 3 flowers exported from India is shipped through BIAL today. Earlier this month, in lieu of Valentine's Day, it facilitated 515,000 kgs of roses to 25 international and domestic destinations compared to 270,000 kgs shipped in 2021.

 

Further, around 200,000 kgs (~7.3 million stems) were exported to international destinations this year compared to last year's 170,000 kgs, as per data shared by BIAL. A spokesperson from BIAL told ITLN that flowers make up a 3-4% share of the overall perishables that move from Bangalore Airport. The Plant Quarantine Inspection and Certification facility at the BIAL terminal also enables seamless and faster transit of flowers. With such seamless transfers and digitalization, processes are geared in such a way that all farm-fresh commodities reportedly reach their destinations within 24 hours of harvest. 'While pharma shipments need to be stored in accurate temperatures, flowers need a cold chain and need to be in a mild to moderate temperature. The temperature needed for roses is between 2-5 degrees. The cool port which is a temperature-regulated infrastructure at BIAL is the only facility that the flowers go through from where they are shipped within 24 hours from when they arrive at the airport. Our operational efficiency ensures that all processes including the customs and plant quarantine approvals are done quickly within our premises and it is very easy to process it. After the initial clearances, the customs also gives the flowers 'priority clearance' within 24 hours from when we receive it - which is key,' said a spokesperson from BIAL. PANDEMIC CASTS A SHADOW However, since 2020, the Coronavirus pandemic has also affected the perishables sector which is struggling to find its feet amidst a break in the global supply chain and rising air freight prices. Mappillai recalls, 'From four shipments of 500 kilos each week, we have come down to hardly one shipment a week because of the freight costs post-pandemic. We have been unable to send shipments to Japan, which was one of our main markets and now we mostly export a limited quantity of roses to New Zealand.' Flower exports are slated to be low this year, owing to good domestic demand and high freight rates, weaning even cultivators like Mappillai from exports. Mappillai says, 'Before the pandemic, we used to pay Rs 180 - 200 and today we pay Rs 530-585 a kilo. During the Valentine's Day time period, freight rates had gone all the way up to Rs 850. It is getting frightfully expensive and we are getting priced out of the market now. Despite freight rates from India being high, we lucked out as several countries were facing issues in sending out flowers. I am not a Valentine's Day player and do these shipments around this occasion only to sustain my market in that particular period.' With more commercial cultivators getting into the fray in India and a maturing of the floriculture trade taking place in India, the domestic market interestingly has seen a sudden demand spike thanks to the wedding market- where roses are the star attraction. 'Earlier our main focus was only exports but now post the pandemic we are forced to supply to this market as well. As each country has a different set of requirements my farm was mainly directed and standardized to supply to Japan and southern hemisphere markets including Australia and New Zealand. But now since the last two years, different colored roses have become a thing for the Indian market, especially for wedding markets which now have the trend of having colour themes at weddings,' he adds, citing that local markets also have a supply of 50-60% of red roses now. Even with his chequered journey as an entrepreneur, Mappillai is cautiously optimistic about India's flower exports as he declares that what is conducive to this sector is that 'India has every climate that you need'. He believes the sector which is showing green shoots in Pune, Bengaluru, Ooty, and Nashik needs to be handheld and nurtured especially in the areas of water supply, power supply, and end-to-end cold chain logistics so that it can grow to its full potential.

 

The country's merchandise exports rose by 26.4 per cent to $25.33 billion this month till February 21 on account of healthy performance by sectors including gems and jewellery, engineering, textiles and chemicals, according to the commerce ministry data.

 

The exports during February 1-21 last year stood at $20.04 billion.

 

The outbound shipments during February 15-21 grew by 26.87 per cent to $9.02 billion as compared to $7.11 billion in February 15-21 last year, the preliminary data showed.

Cumulatively, exports during April-January 2021-22 rose by 46.53 per cent to $335.44 billion as against $228.9 billion in the same period last year.

 

The ministry is hopeful that the exports would cross the $400 billion target by the end of this fiscal.

United Nations Joint Sustainable Development Goals (SDG), Fund has awarded $2million grant to boost Suriname’s pineapple sector through a programme that will benefit indigenous and other rural communities. It will be implemented by United Nations Industrial Development Organization (UNIDO), and Food and Agriculture Organization of United Nations (FAO), as lead agencies, in partnership with the International Labour Organization and United Nations Population Fund.

 

The joint programme, ‘Sustainable Pineapple Value Chain Development’, stems from a proposal submitted under The Accelerator for Agriculture and Agroindustry Development and Innovation Plus (3ADI+), which was selected from a global pool of submissions from over 100 countries.

 

Developed in close collaboration with the various stakeholders in the pineapple value chain in Suriname, the joint programme will see the four UN agencies, in partnership with development banks and local financial institutions, implement several solutions including an innovation hub to provide cutting edge technical assistance and an innovative guarantee facility to ease access to credit and de-risk investments.

 

The initiative will enable farmers, processors and others in the pineapple value chain, to increase their productivity, competitiveness and market access in a sustainable and transformational manner with a focus on generating incomes for indigenous communities.

 

Suriname, one of the birth-places of pineapple, boasts a range of unique varieties many of which have been cultivated over centuries by the same indigenous peoples that today still represent the majority of the country’s pineapple producers. By helping to build a sustainable pineapple value chain, the joint programme will contribute to building the resilience of indigenous and other rural groups by integrating decent work considerations, enterprise development and the empowerment of farmers and workers, with special emphasis on the inclusion of women and youth, through cooperatives and better governance practices.

 

Ali Badarneh, chief of the Sustainable Food Systems Division at UNIDO, said, 'Bringing value chain analysis and financial mechanism design together is a game-changer in our approach under 3ADI+. This is our definition of a sustainable investment model that supports technical assistance delivery, increases value chain’s productivity, empowers communities, and boosts resilience.'

 

David Neven, senior economist at FAO, said, 'Since 2018, in response to a request from Government of Suriname, UNIDO and FAO have supported the sustainable development of the pineapple value chain in Suriname under 3ADI+. In collaboration with relevant ministries, the 3ADI+ team engaged with Surinamese farmers and other value chain actors to analyse the strengths and weaknesses of the pineapple value chain, and based on this analysis, a 2030 vision for an upgraded pineapple value chain was proposed and gathered widespread buy-in.'

 

'The development of the pineapple value chain in Suriname is a strategic priority for Government of Suriname which aims to diversify the country’s economy and add more value to its agricultural commodities. The potential is there. We know that they have very good product, we know that people are eager to develop this value chain, from the public sector to the private sector, and we know the markets are out there as well. If we can put all the pieces together, and this is where FAO and its partners come in to help, I’m sure this is going to be a success,' added Neven.

 

December was the brightest period for the Agricultural and Processed Food Products Export Development Authority (APEDA) as exports of the products promoted by it were the highest in a month this fiscal. The value of shipments increased to a seven-month high of 37 per cent ($2.44 billion). With the escalation of tension in Ukraine, if the global commodities prices flare up, it may help APEDA to achieve its target of $23.7 billion for the current fiscal.

 

Exports of APEDA-promoted major agriculture and processed products, broadly divided into 27 categories, touched $17.47 billion (?1,29,782 crore), up by 23.83 per cent over the $14.11 billion registered in the year-ago period, according to the latest export data. However, to achieve the target the current volume of shipments need to be maintained during January-March quarter at previous quarter level, experts said.

 

74% export target achieved

 

'Already 74 per cent of the target has been achieved in first three quarters and growth momentum is likely to be same in last quarter (January-March) as well,' said M Angamuthu, Chairman of APEDA. There was a slight slowdown during July-September, otherwise target could have met before end of this fiscal, he said.

 

APEDA has developed product metrics for about 75 products in the top 50 countries and will actively encourage sustainable growth in their shipments, Angamuthu said. 'Our endeavour is to make India a reliable food and nutritional security provider, globally,' he said.

 

According to official data, exports of non-Basmati rice grew 46 per cent to $4.49 billion (?33,350 crore), buffalo meat by 6 per cent to $2.5 billion (?18,674 crore) and wheat 417 per cent to $1.44 billion (?10,694 crore), while Basmati rice dropped 19 per cent to $2.38 billion (? 17,689 crore) during April-December of current fiscal. These four commodities make up 62 per cent of the total exports of the APEDA-promoted products this year.

 

Opportunity for barley

 

'The Ukrainian crisis will boost wheat, maize and honey exports from India. It opens up an opportunity in barley exports, too. All these export opportunities could be realised if there is no supply chain impediments,' said S Chandrasekaran, a foreign trade policy expert. As global prices of commodities may flare up amid the geopolitical tension, it may help the country to get higher realisation in global markets in agri commodities, he added.

 

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 are the second most contributor with 14 per cent share, followed by spices with 10 per cent share.

To project the strength of India’s organic agriculture and horticulture products in the global market, India Pavilion at EXPO2020 Dubai hosted a seminar 'Indian Organic and Horticulture Sector–Moving Up the Value Chain’ as part of the ongoing ‘Food, Agriculture and Livelihood’ fortnight.

 

The seminar, to deliberate on the opportunities and huge export potential that the Indian agriculture sector offers, saw participation from the representatives of the Government & Private sector.

 

In his opening remarks, Shri P.K.Swain, Additional Secretary, Ministry of Agriculture & Farmers Welfare, said, 'In ‘Rising India’, Agriculture is a dominant sector which contributes significantly to the Indian economy. With 15 agro-climatic zones, rich soil, mineral-rich water, and is driving the volume, variety, and quality. India is on its way to becoming the food basket of the world and is offering both food and nutritional security with good agricultural practices to the world.'

 

Applauding the expansion of the sector in the country, Shri Swain said, 'India is scripting history with the enchanting growth trajectory of organic horticulture.' He also urged the global investors to invest in the agriculture supply chain and take advantage of FDI policies introduced by the government in the sector.

 

Dr. B Rajendra, Minister (Agriculture), Embassy of India, Rome & Italy & Representative, FAO said, 'We need to put a lot of effort in ensuring the quality of our organic horticulture produce and take advantage of such global platforms to expand our export avenues.'

 

Talking about the export potential of organic and  horticulture Produce in India, Shri Priya Ranjan, Joint Secretary, Ministry of Agriculture and Farmers welfare said, 'To ensure the quality of our organic produce, we need to have a robust system of Certification and Government of India has anchored two systems of certification for Organic products'. He further emphasized that appropriate phytosanitary protocols need to be ensured for better acceptability of Indian Organic and Horticultural products. 'We envisage targeting 10% export share in global fruits and vegetable market by 2030', he added.

 

It is pertinent to point that despite the pandemic, India’s organic exports grew 51% over 2019-20 levels. India’s organic exports stood at 8,88,180 MT in 2020-21.

 

Highlighting the impressive trajectory of India’s agriculture ecosystem, Shri K. Srinivas, Partner, Food & Agribusiness, KPMG, said, 'India is ranked amongst the top ten exporting countries in agriculture and the overall exports have been growing at an extremely significant rate. Despite the pandemic challenges, we were able to achieve this feat and it strengthens India’s positioning as an exporter globally.'

 

Emphasizing on the export-focused strategy for the promotion of organic and horticulture produce, Mr. Srinivas said, 'This platform is helping us initiate conversation around awareness and capacity building with investors to make prominence of India in horticulture space. Adoption of good agriculture practices, enhanced farm gate infrastructure, higher investment in R&D, and digital integration are some of the strategies that will play important role in promoting India’s horticulture exports.'

 

Eleven success stories were shared at the session by various start-ups and food processing businesses, focusing on key-value chain and export opportunities in India.

 

The ‘Food, Agriculture and Livelihood’ fortnight will conclude on March 2nd.