Union Commerce and Industry Minister Piyush Goyal discussed the Early Progress Trade Agreement (EPTA) between India and Canada with his Canadian counterpart Mary Ng on Monday. The agreement, as per Goyal, would mutually benefit both the countries and 'further deepen the Indo-Canadian ties'. The two also co-chaired the sixth India-Canada Ministerial Dialogue on Trade and Investment (MDTI).

 

Goyal tweeted: 'Co-chaired the 6th India-Canada Ministerial Dialogue on Trade & Investment with my Canadian counterpart Mary Ng. The dialogue reinforced how forging an Early Progress Trade Agreement would further deepen the Indo-Canadian trade ties, mutually benefiting both the countries'.

 

The EPTA is one of the important steps towards the Comprehensive Economic Partnership Agreement (CEPA). Indian and Canadian officials held the seventh round of negotiations for the EPTA in Ottawa in April this year. This agreement may cover non-conventional areas like SMEs, trade and gender, environment and labour, apart from the traditional areas. It is also aimed at liberalising norms to promote trade in services and attract investments.

 

India and Canada are looking to reduce customs duties on goods traded between the two countries through these negotiations, Commerce Ministry said. India’s key exports to Canada are medicines, chemicals, petroleum oils, and plastic products, electrical and electronic equipment. Canada imports fertilisers, aviation technology and equipment, coal, and diamonds among other items from India.

 

Launched in 2009, the CEPA is aimed at promoting bilateral trade and investment by eliminating or reducing tariffs on goods and services traded between the two countries. This agreement aims at covering a wide range of sectors such as agriculture, intellectual properties, and manufacturing services.

 

The MDTI, on the other hand, is a bilateral forum to discuss trade and investment related issues and cooperation areas. The dialogue focuses on themes such as strengthening the bilateral trade relationship, investment promotion, green transition including critical minerals.

The initial gains from the India-UAE Comprehensive Economic Partnership Agreement (CEPA) have already started accruing with bilateral trade growing around 20% and touching an all-time high of around $84 billion in FY23, Rajesh Kumar Singh, secretary, Department for Promotion of Industry and Internal Trade (DPIIT) said at a business gathering in Dubai.

 

The agreement came into force on May 1 last year.

 

Singh, along with Juma Mohammed Al-Kait, Assistant Undersecretary for International Trade, Ministry of Economy, UAE and Sunjay Sudhir, Ambassador of India to the UAE, inaugurated the International Jewellery Exposition Centre in Dubai in which around 100 companies from India and the UAE, participated.

 

'Singh had also held one-on-one meetings with senior representatives of Abu Dhabi Investment Authority and Mubadala Investment Company – sovereign wealth funds of the UAE,' the commerce and industry ministry said in a statement.

 

The two-day visit to the UAE of the Indian delegation led by the DPIIT secretary concluded on May 9.

In a long tweet, the EAM said the two sides also noted the progress in the I2U2 - India, Israel, US, UAE bloc - as well cooperation in multilateral forums.

 

The two ministers also exchanged perspectives on their respective regions, as well as on the Ukraine conflict, and the Indo-Pacific.

 

'Productive and wide-ranging discussions with Foreign Minister @elicoh1 of Israel this afternoon.

 

'The main pillars of our Strategic Partnership - Agriculture, Water, Defence & Security - are taking our ties forward. New agreements in water & agriculture today underline the potential to do more.

 

'Discussed cooperation in high tech, digital & innovation, as also connectivity, mobility tourism, finance, and health.

 

'Noted the progress in I2U2 and cooperation in multilateral forums. Exchanged perspectives on our respective regions, Ukraine and Indo-Pacific.

 

'Initialed an agreement in the area of mobility.'

 

The Israeli Minister in a tweet said he had held an excellent meeting with EAM Jaishankar, and the two sides are expanding cooperation in the fields of cyber, agriculture and water.

 

'Excellent meeting with the Foreign Minister of India -@DrSJaishankar

'We are strengthening ties with the most populous country in the world, and expanding cooperation in the fields of cyber, agriculture and water.

 

'Our cooperation will strengthen Israel's position in the world and stability in the Middle East.'

 

The two ministers later paid homage at the Teen Murti Haifa Chowk.

 

EAM Jaishankar said, 'This symbol of our shared history reflects the enduring India-Israel friendship.'

The Central agency National Agricultural Co-operative Marketing Federation of India (Nafed) is likely to start onion procurement on May 15, hoping to create a buffer stock. Last year, the agency started the procurement in the second half of April.

 

The average wholesale prices of summer onions have declined to Rs 700 per 100 kgs this year due to a rise in supply. Nafed officials said they would procure 80% of the total 150,000 tons summer onions from Nashik district and the remaining from Ahmednagar and other pockets in Maharashtra.

 

The federal government has set a target of creating a buffer stock of 250,000 tons of onions through its two central agencies.

In a landmark initiative, the North Eastern Regional Agricultural Marketing Corporation (NERAMAC) under the Union DoNER ministry has authorised 800 farmers from the northeast to use the GI tag of 13 fruits and vegetables over which it had exclusive GI rights under Intellectual Property Rights.

 

A GI tag offers a guarantee of origin and specific characteristics of the commodities that helps build global reputation for the products. After NERAMAC on Tuesday authorised these farmers, working in groups, to use its certifications, it is expected to boost promotion of these unique products of the northeast in the international and domestic markets.

 

In continuation to NERAMAC's endeavours towards GI initiatives, a GI awareness seminar-cum-exhibition was held on Tuesday, where the authorisation was handed to the farmers. These commodities are: Arunachal Orange, Mizo Chilli, Kachai Lemon, Tripura Queen Pineapple, Khasi Mandarin, Tezpur Litchi, Sikkim Large Cardamom, Karbi Anglong Ginger, Naga Tree Tomato, 'Chak-Hao' Black Rice, Memang Narang, Dalle Khursani and Naga Sweet Cucumber.

 

'The initiative will provide recognition to the unique qualities and reputation of NER agricultural products and protect them from misuse and imitation,' said Commodore Rajiv Ashok (Retd), managing director, NERAMAC. 'The GI initiative is a significant step towards promoting and protecting the traditional agricultural practices and products of the NER region.'

The Akhil Bharatiya Vidyarthi Parishad (ABVP) organized the Seventh National Conference of Agrivision on the theme 'Self-reliant Agriculture - Self-Reliant India' on Saturday.

 

The Union Agriculture Minister, Narendra Singh Tomar, addressed the conference and appreciated efforts made by students and farmers working in the field of agriculture.

 

He also passed prominent proposals related to agriculture.

 

Narendra Singh Tomar during the conference, said, 'If a farmer feeds us, then why can't we call him a rich, prosperous, or anna (food) giving farmer? We rather call him poor. It should add to their prestige. Agriculture is the backbone of our country. Our farmers and scientists who are working in the agriculture sector deserve appreciation and should always be encouraged.'

 

He added that in this regard, 'Prime Minister Narendra Modi has also tried to connect this sector with many new dimensions by prioritising agriculture. Its success is being reflected in us today. More money can be made in other sources of livelihood but works in fields to feed 140 crore people across the nation.'

 

Shubham Singh Patel, National Convenor of Agrivision said, 'Agrivision is constantly working towards the betterment of the agriculture sector. There is a need to improvise the agriculture sector with new technology so that this sector can develop into a profitable one.'

 

In addition to this, under the Pradhan Mantri Kisan Samman Nidhi Scheme, about 2.5 lakh crore rupees have been deposited by the central government in the bank accounts of crores of farmers with complete transparency so far. The scheme created 10,000 Farmer Producer Organizations (FPOs) in the country and is being implemented for Rs 6,865 crores. The Kisan Credit Card (KCC) scheme has approached as a boon for small farmers, under which short-term loans of about Rs 20 lakh crore have been given to them.

Sh. Rajesh Kumar Singh, Secretary, Department for Promotion of Industry and Internal Trade (DPIIT) and H.E Thani bin Ahmed Al Zeoudi, UAE Minister of State for Foreign Trade, jointly inaugurated the events to commemorate the first anniversary of the entry into force of the Comprehensive Economic Partnership Agreement (CEPA) between India and the UAE. Speaking at the event, Sh. Rajesh Kumar Singh highlighted how the path-breaking India-UAE CEPA, which was negotiated in just 88 days, has become a significant turning point in the bilateral economic relations between the two countries.

 

For India, the CEPA with UAE is the first in the region and for UAE, it is their first ever CEPA. Since the entry into force of CEPA, bilateral trade between India and UAE has witnessed tremendous growth of 20% when compared to the previous year. India’s exports to the UAE also recorded a remarkable growth of 12%, reaching US $ 31.3 billion in 2022-2023.

 

As part of the CEPA celebrations, Sh. Rajesh Kumar Singh inaugurated the Kerala Pavilion today at the Annual Investment Meeting in Abu Dhabi. He held meetings with the senior leadership of Abu Dhabi Investment Authority and Mubadala, the top UAE investors in India. Welcoming the surge in investments from the UAE to India, Sh. Rajesh Kumar Singh invited both companies to explore new sectors for investing in India, especially the renewable and digital sectors. The UAE is currently the seventh largest investor in India with an estimated investment of US$ 18 billion.

 

Secretary, DPIIT will be inaugurating the International Jewellery Exposition Centre in Dubai tomorrow. He will also be the Chief Guest for a multi-sectoral B-2-B event in Dubai organised by the Gems and Jewellery Export Promotion Council (GJEPC) tomorrow, in which around 100 companies from India and UAE, including representatives of various Export Promotion Councils (EPCs) are expected to participate.

 

The 'CEPA – Beyond Trade' commemorative event included food and fashion pavilions, sharing of the success stories of the historic trade bonds between India and the UAE and panel discussions on future areas of cooperation.

 

The visit of Secretary, DPIIT to UAE is his first official trip abroad since assumption of office in April 2023, indicating the significance India attaches to close relationship with UAE.

White rice (raw) prices have increased across Asia as some of the countries depending on the cereal as the staple food are building stocks to overcome any problem that might arise from the El Nino, which is likely to develop in the second half of 2023. 'Rice prices are up as countries such as Indonesia, the Philippines and Malaysia are looking to buy more rice,' said BV Krishna Rao, President, The Rice Exporters Association of India (TREA). 

 

'There is more demand from islands around the Philippines. The Malaysia market too is open. We are getting enquiries from Vietnam too,' said VR Vidya Sagar, Director, Bulk Logix. 'Arrivals of the new crop are likely in Vietnam by this month-end. Buyers are asking us to expedite shipments,' said M Madan Prakash, President, Agri Commodities Exporters Association (ACEA).

 

'Countries such as Indonesia, the Philippines and Malaysia are stocking up to ensure they are not affected by the upcoming El Nino in any way. They don’t want to go through their 2007-08 experience when agri commodities prices exploded,' said S Chandrasekaran, trade analyst.

 

2007-08 crisis

In 2007-08, India banned rice exports resulting in the grain’s prices touching $1,000 in the global markets. According to the Food and Agriculture Organisation(FAO), an arm of the UN, it resulted in a crisis, harming the poor. 'If the government keeps up its support, we could end up exporting the same volume of rice like last fiscal,' said Rajesh Paharia Jain, a New-Delhi based exporter.

 

According to the International Grains Council, India’s 25 per cent broken white rice is quoted at $442 a tonne, while Thailand and Vietnam are quoting $490 and $480, respectively. Indian rice prices have increased 27 per cent year-on-year, more than Thailand (11 per cent) and Vietnam (16 per cent).

 

According to FAO, production of maize, rice and soyabean could be affected in the event of the El Nino developing.

 

Key development

The India Meteorological Department (IMD) has said El Nino will set in in the second part of the monsoon from August, while the Australian Bureau of Meteorology expects it to develop in July-end. The US Climate Prediction Center sees the event, which leads to drought in Asia and floods in the Americas, developing during May-June and strengthening further. 'One of the key developments in the global rice markets is that buyers have accepted the 20 per cent export duty on white rice,' said Jain, pointing to the 3 per cent rise in rice exports in the 2022-23 fiscal. 

 

'These Asian countries are buying so that they will not be caught by any ban that India might resort to ensure food security as it did last year when it banned wheat and fully broken rice exports,' said Chandrasekaran.

 

'India will not sacrifice its food security, though it might take care of least developed countries’ needs,' he said. 

 

Parboiled under pressure

'We are getting supplies of 25 per cent broken in Chennai at Rs.28,500 a tonne. Two weeks ago, we shipped at $430 a tonne cost and freight to South-East Asia. Prices have gone up further,' said ACEA’s Prakash. 'However, parboiled rice prices are stressed. There is no (Indian) government procurement so prices are falling,' said Bulk Logix’s Sagar.

 

White rice prices are gaining also because the Food Corporation of India (FCI) is procuring stocks for the central pool to be distributed through ration shops and to meet any food emergency. 

 

FCI’s rice procurement topped 50 million tonnes (mt) last week and it is set to meet the 62.17 mt target for the current marketing year to September. 

 

Record output

Indian parboiled rice prices are ruling below $380 a tonne in the global market in view of the slack demand. It is over $100/tonne competitive against Thailand and Pakistan. 

 

Rice stocks until April 1 with FCI were at a five-year low and total foodgrain stocks, including wheat, were also at a five-year low mainly in view of wheat procurement being affected last year. 

 

Lower wheat production resulted in its procurement being affected last year, while more rice was diverted to make up for distribution through ration shops. 

 

India’s rice exports have been supported by record production of 130.83 mt (129.47 mt a year ago) of rice during the current crop year to June. Though kharif rice production dropped to 108 mt against 111 mt a year ago, the output was made up due to higher acreage in the rabi season.

India, on Monday, prohibited the import of apples where the Cost, Insurance, and Freight (CIF) import price is less than or equal to Rs 50 per kilogram. The government changes the import policy to 'prohibited' from 'free' earlier.

 

The amendment in the apple import policy will not be applicable to Bhutan, the Directorate General of Foreign Trade (DGFT) said in a notification.

 

'Import of apples…is Prohibited' wherever the CIF Import Price is less than equal ot Rs 50/- per kilogram. Minimum Import Price conditions shall not be applicable for imports from Bhutan,' DGFT said.

 

In April-February FY23, India’s apple imports were $260.37 million, with Turkey, Italy, Iran and Chile being the top sources. In the full 2021-22, India imported fresh apples worth $385.1 million.

 

The move assumes significance as apple farmers in Kashmir had called for a ban on the import of Iranian apples and imported apples were depressing the prices of domestic apples, sources said.

 

The government, had in 2018, removed the port restrictions on apple imports by allowing their inbound shipments through ports and airports in Kolkata, Chennai, Mumbai and Cochin, and land port and airport in Delhi. It had also permitted the imports through India’s land borders.

The directorate of industries has offered to set up district level laboratories for the certification of agricultural yield to encourage exports from the districts.

 

According to a senior official from the directorate of industries, the laboratories will certify agricultural produce in accordance with the requirements set by the nations to whom the exports are destined.

 

The Officers said that the laboratories are suggested to assist farmers get the certification of most of the major agricultural yields of the districts based on the parameters of the presence of chemicals defined by the destination countries. There is no common test for yield as each country has a distinct set of guidelines set by their governments.

 

The task is part of the steps taken to augment the locals towards exporting their yield. The department has decided to maximize the exports at least twice the current volume.

 

Presently, have to look for laboratories to get certified, which is a monotonous procedure including time and money. The officer said that the laboratories to be set up in public private participation mode will certify the products and thus simplify the testing process. This will impact in quick turnaround time.'

 

Regarding the value of the laboratories, the officer said that was yet to be determined by adding that since the government will also be in control, the end user will have to pay reasonably for the services.

 

Such laboratories will also be benefitted from the exports of one district one product (ODOP) and the Geographical Indication (GI) tagged products.

 

Out of 72 ODOPs that have been identified 50 are agro-based products. Also, the industries department is tying up with the technical universities for the ODOP marketing projects which include designing, packaging, branding, and promotion of the products.

 

Already, Maharashtra has 34 GI products. And, 16 potential GI products have been identified too.