As many as 51 projects have been sanctioned under the Trade Infrastructure for Export Scheme (TIES) till the end of January and out of that, 13 projects are already completed, Parliament was informed on Wednesday. The government is implementing this scheme from 2017-18, with the objective of assisting central and state government agencies in the creation of appropriate infrastructure for the growth of exports.

 

Under the scheme, financial assistance in the form of grant-in-aid is provided to central/ state government-owned agencies for setting up or upgrading export infrastructure.

 

'The scheme has been further extended for the period 2021-22 to 2025-26 with a total outlay of Rs 360 crore.

 

'A total of 51 projects having grant components of about Rs 548 crore have been sanctioned under TIES till the end of January 2022,' Commerce and Industry Minister Piyush Goyal said in a written reply to the Lok Sabha.

 

Replying to a separate question, Minister of State for Commerce and Industry Som Parkash said the Department for Promotion of Industry and Internal Trade initiated the process of developing the portal as a national single window system (NSWS).

 

Envisioned as a one-stop shop for taking all the regulatory approvals and services in the country, NSWS was soft-launched in September 2021.

 

'Currently, IT portals of 19 ministries/ departments and 13 states' single-window systems have been linked with the NSWS portal,' he said.

 

Ministries linked with the portal include corporate affairs, environment, forest & climate change, labour & employment, food & public distribution, consumer affairs, health & family welfare, commerce, telecommunications, and information & broadcasting.

 

The 13 states are Goa, Gujarat, Himachal Pradesh, Odisha, Uttar Pradesh, Uttarakhand, Punjab, Karnataka, Madhya Pradesh, Andhra Pradesh, Telangana, Maharashtra and Tamil Nadu.

The National Centre for Organic Farming (NCOF), under the Ministry of Agriculture & Farmers Welfare, is the nodal organization for organic farming in the country. NCOF implements the National Project on Organic Farming (NPOF) to promote production, certification and marketing of organic products. The National Programme for Organic Production (NPOP), introduced by the Department of Commerce, is aimed at regulation and promotion of organic production for exports.

 

The promotion of exports of organic products is a continuous process. The Agricultural & Processed Food Products Export Development Authority (APEDA), an autonomous organisation under the administrative control of Department of Commerce, has been mandated with implementation of NPOP and export promotion of organic products. APEDA provides assistance to the exporters of organic products under various components of its export promotion scheme. APEDA also undertakes various activities to promote exports of organic products viz. addition of new products under NPOP, making efforts to get NPOP standards recognized by the importing countries, promoting ‘India Organic’ brand through participation in international trade fairs and exhibitions, organising Buyer-Seller Meets (BSMs), organising capacity building and outreach programmes etc.

 

India’s exports of organic products amounted to USD 1.04 billion during 2020-21. Organic foodgrains are being exported from the country mainly under the category Cereal & Millets. During 2020-21, 59908 MT of organic products under the category ‘Cereal & Millets’, worth 76 million USD, have been exported from India under the National Programme for Organic Production (NPOP).

 

The Government of India has been promoting Organic farming in the country, including in Bundelkhand and Uttarakhand, through dedicated schemes namely ParamparagatKrishiVikasYojana (PKVY) and Mission Organic Value Chain Development for North Eastern Region (MOVCDNER) since 2015-16 to cater to the needs of domestic and export markets respectively. Marketing and branding have been integral part of organic farming schemes. Assistance of Rs 6800/ ha under PKVY and Rs 5000/ ha under MOVCDNER is provided for marketing, branding and trade. Brand ‘Organic Uttarakhand’ has been developed under PKVY for the State of Uttarakhand.

 

This information was given by the Minister of State in the Ministry of Commerce and Industry, Smt. Anupriya Patel, in a written reply in the Lok Sabha today.

In view of considerable overlap between schemes, it has been decided to merge the ‘Scheme on Implementation of Agriculture Export Policy’ with other district level schemes being planned by the Department of Commerce. The institutional framework created under the District Export Hubs initiative, at State and District levels, is being utilized to achieve the objectives of Agriculture Export Policy.

 

This information was given by the Minister of State in the Ministry of Commerce and Industry, Smt. Anupriya Patel, in a written reply in the Lok Sabha today.

India’s economic growth in the current year is estimated to be 9.2 per cent, highest among all large economies. The overall, sharp rebound and recovery of the economy from the adverse effects of the pandemic is reflective of our country’s strong resilience. This was stated by Union Minister for Finance and Corporate Affairs Smt Nirmala Sitharaman while presenting the Union Budget in Parliament today.

 

The Finance Minister said, India is celebrating Azadi ka Amrit Mahotsav and it has  entered into Amrit Kaal, the 25-year-long leadup to India@100, the government aims to attain the vision of  Prime Minister outlined in his Independence Day address and they are:

 

* Complementing the macro-economic level growth focus with a micro-economic level all-inclusive welfare focus,   

 

* Promoting digital economy  & fintech, technology enabled development, energy transition, and climate action, and 

 

* Relying on virtuous cycle starting from private investment with public capital investment helping to crowd-in private investment.

 

Since 2014, the government’s focus has been on empowerment of citizens, especially the poor and the marginalized and measures have been taken to  provided housing, electricity, cooking gas, and access to water. The government also have programmes for ensuring financial inclusion and direct benefit transfers and a commitment to strengthen the abilities of poor to tap all opportunities.

 

The Finance Minister informed that the Productivity Linked Incentive in 14 sectors for achieving the vision of AtmaNirbhar Bharat has received excellent response, with potential to create 60 lakh new jobs, and an additional production of  Rs 30 lakh crore during next 5 years. Dwelling on the issue of  implementation of the new Public Sector Enterprise policy, She said, the strategic transfer of ownership of Air India has been completed, the strategic partner for NINL (Neelanchal Ispat Nigam Limited) has been selected, the public issue of the LIC is expected shortly and others too are in the process for 2022-23.

The country's exports rose by 23.69 per cent to USD 34.06 billion in January on healthy performance by engineering, petroleum and gems and jewellery segments even as trade deficit widened to USD 17.94 billion during the month, according to provisional data of the commerce ministry.

 

Imports in January grew by 23.74 per cent to USD 52.01 billion, the data, released on Tuesday, showed.

 

Trade deficit widened to USD 17.94 billion during the month as against USD 14.49 billion in the same month last year.

 

Cumulatively, exports during April-January 2021-22 rose by 46.53 per cent to USD 335.44 billion as against USD 228.9 billion in the same period last year. Imports during the period jumped by 62.68 per cent to USD 495.83 billion.

 

Trade deficit, difference between imports and exports, stood at USD 160.38 billion during the ten months period of this fiscal as compared to USD 75.87 billion in April-January 2020.

 

According to the data, gold imports in January dipped by 40.42 per cent to USD 2.4 billion. Crude oil imports rose by 21.3 per cent to USD 11.43 billion in January.

 

Engineering exports rose by 24.13 per cent to USD 9.2 billion, petroleum by 74.73 per cent to USD 3.73 billion and gems and jewellery by 13.83 per cent to USD 3.23 billion.

 

Pharmaceuticals exports, however, dipped by 1 per cent to USD 2.05 billion in January.

 

Federation of Indian Export Organisations (FIEO) Vice President Khalid Khan said that going by the current rate of growth, India will achieve USD 400 billion exports target for this fiscal.

 

FIEO President A Sakthivel said that the additional budget for the Interest Equalization Scheme for 2021-22 and provision of Rs 2,621.50 crore for 2022-23 have provided assurance on the continuance of the scheme and 'we are expecting a suitable announcement in this regard'.

Meenesh Shah, Chairman, National Dairy Development Board had welcomed the reduction in alternate minimum tax for cooperative from 18.5 per cent to 15 and surcharge from 12 to 7 per cent%for cooperatives having income Rs R to 10 crore.

 

The decision will boost development initiatives of dairy cooperatives and ensure better remuneration to millions of farmers.

 

Jordan's state grains buyer purchased 60,000 tonnes of hard milling wheat to be sourced from optional origins in a tender which closed on Tuesday, traders said.

 

It was bought from trading house Ameropa at an estimated $326.00 a tonne c&f for shipment in the second half of August, they said.

 

Traders said two other trading houses participated in the tender, CHS offered $329.43 a tonne c&f and Cargill offered $335.00 a tonne c&f.

The Union Finance Minister on Tuesday proposed to increase the budget allocation in the agriculture sector from Rs 1,23,018 crore to Rs 1,32,513 crores—a marginal increase of Rs 9495 crores from the previous budget allocation.

 

Besides, the government has also proposed to allocate Rs 6037 to the Ministry of  Fisheries, Animal Husbandry, and Diaring and another Rs 2,941 crore to the Ministry of Food Processing Industries, the Finance Minister budget provisions made by the Union Finance Minister Nirmala Sitharaman.

 

She also proposed to promote high services to farmers including the use of ‘Kisan Drones’ for crop assessment, digitization of land records, spraying of insecticides and nutrients.

 

She said for the delivery of digital and hi-tech services to farmers with the involvement of public sector research and extension institutions along with private agri-tech players and stakeholders of the agri-value chain, a scheme in PPP mode would be launched.

 

Besides this, the state governments would also be encouraged to revise syllabi of agricultural universities to meet the needs of natural, zero-budget, and organic farming, modern-day agriculture, value addition, and management, the Finance Minister said.

 

She said a fund with blended capital, raised under the co-investment model, would be facilitated through NABARD. This is to finance startups for agriculture and rural enterprise, relevant for farm produce value chain.

 

'The activities for these startups will include, inter alia, support for FPOs, machinery for farmers on rental basis at farm level, and technology including IT-based support,' the Finance Minister said.

 

The government would also promote chemical-free natural farming throughout the country with a special focus on farmer’s land in five-kilometer-wide corridors along river Ganga. In wake of 2023 being announced as the International Year of Millets, 'Support will be provided for post-harvest value addition, enhancing domestic consumption, and for branding millet products nationally and internationally,' the Finance Minister said.

 

She said the government would also announce a rationalized and comprehensive scheme to increase the production of oilseeds to reduce India’s dependence on the import of oilseeds.

Reorientation of 18 schemes under 10 broad subjects and more freedom to States to implement their own plans in agriculture, besides nearly 74 per cent hike for fisheries and increased allocation for fertiliser subsidy amid call to shift towards natural farming show a clear blue print for the farm sector for next year. Even though there were no specific new announcements as expected by stakeholders, sufficient indications are there in the Budget document to what are the steps likely to be taken over the next one year.

 

After a long gap, the allocation under Rashtriya Krishi Vikas Yojana (RKVY) has seen nearly three-fold jump to Rs10,433 crore for 2022-23 from Rs3,712.44 crore (BE) in current fiscal and the hike is over five-times from the revised estimate. The scheme, started during UPA government, had found support from Madhya Pradesh Chief Minister Shivraj Singh Chouhan who even had pitched for all Central schemes to be like this as it allowed States to develop and implement their own plans.

 

'There is a major emphasis on procurement of paddy and wheat, but bulk allocation should shift to pulses and millets,' said former Union Agriculture Secretary SK Pattanayak. More allocation to RKVY will give flexibility to States to mould these funds the way they want, he said. However, one has to see what is the total allocation for the farm sector minus PM-Kisan, crop insurance and interest subsidy, he added.

 

Out of the total Rs1,24,000 crore allocated to the Department of Agriculture and Farmers Welfare, allocation to PM-Kisan, Pradhan Mantri Fasal Bima Yojana (PMFBY) and interest subsidy for crop loan has a combined share of 83 per cent at Rs1,03,000 crore. In the current fiscal (BE), the share of these three schemes was nearly 82 per cent of the allocation made for the department.

 

No separate programmes

 

The Budget has clubbed all major activities in the 50:50 fund sharing plan with States under a new Krishionnati Yojana divided under 10 areas like agri extension, integrated development of horticulture, and seed and planting material. There will be now no more separate programmes like National Project on Soil Health and Fertility, Rainfed Area Development and Climate Change, Paramparagat Krishi Vikas Yojana and National Project on Agro-Forestry.

 

Earlier, there was no allocation under extension and Rs1,000 crore to it separately will take care of many activities and a micro focus on this key activity which is crucial for raising farmers’ income whether it is technology adoption or reduction in input costs, said an agriculture ministry official. The details of fund utilisation will be worked out in consultation with States since extension is in their domain and they will also have to deposit the matching share, the official said.

 

As outlined in the Economic Survey on the need to focus more on non-farm businesses, animal husbandry, dairy and fisheries sectors to boost farmers’ income, Finance Minister Nirmala Sitharaman has increased allocation for the Department of Fisheries by 73.5 per cent to Rs2,118.47 crore and by 26.3 per cent to Rs3,918.84 crore for the Department of Animal Husbandry and Dairying.

 

Lower allocation

 

However, there is no clear indication on the chemical fertilisers even as the Budget mentioned about the need to shift towards chemical-free natural farming as the subsidy on urea has been kept at Rs67,186.78 crore, 7 per cent more than current year (BE), while it is more than doubled to Rs42,000 crore in case of phosphorous (P) and potash (K). But the allocation is lower compared with revised allocations for current year in all three nutrients.

 

'The focus on start-ups and AgriTech will be helpful for the development of a digital ecosystem and technology inclusion in the farm sector. However, most industry aspirations remain unmet,' said Ajay Kakra, Leader – Food and Agriculture, PwC India.

 

The silver lining is that it has put focus on technology and has concentrated on logistics from which agriculture sector will reap the benefit. Since the Budget was very cryptic and short we do not know the outlines of the actual proposals that will throw light in the coming days,' said Pattanayak.

Finance Minister Nirmala Sitharaman on Tuesday announced that the government plans to promote chemical-free natural farming across the country. At the same time, she also reduced the allocation towards the fertiliser subsidy by around a fourth over the revised estimates last year.

 

Presenting the Union Budget on Tuesday, Sitharaman said, 'Chemical-free natural farming will be promoted throughout the country, with a focus on farmers’ lands in 5-km wide corridors along the River Ganga, at the first stage.'

 

Further, she added that States will be encouraged to revise the syllabi of agricultural universities to meet the needs of natural, zero-budget and organic farming, modern-day agriculture, value addition and management.

 

For the fertiliser subsidy, the Budget has made an allocation of Rs1,05,222 crore, about 25 per cent lower than the revised estimates of previous year’s Rs1,40,122 crore. Of the total outlay for the fertiliser sector for 2022-23, Rs63,222 crore has been earmarked for urea (Rs75,930 crore RE 2021-22) alone and Rs42,000 crore for the nutrient-based subsidy (Rs64,192 crore RE 2021-22) for phosphatic and potassic fertilisers.

 

‘Subsidy inadequate’

 

ICRA said the budgetary allocation for the fertiliser subsidy is inadequate to meet the sector’s requirement for the year. ICRA expects the subsidy requirement to be around Rs1.30-1.40-lakh crore. While the subsidy allocation remains lower than the expectations, ICRA expects GoI to make additional allocations in case of an increase in the requirements as the year progresses as has been the case for the last two fiscals.

 

Interestingly, on Monday, the Economic Survey had made a pitch for reduction in use of chemical fertilisers and promote the use of low-cost organic inputs to protect the soil. The main aim for promotion of natural farming is elimination of chemical fertilisers and pesticides usage and promotion of good agronomic practices.

 

'Natural farming also aims to sustain agriculture production with eco-friendly processes in tune with nature to produce agricultural produce free of chemicals. Soil fertility and soil organic matter is restored by natural farming practices. Natural farming systems require less water and are climate friendly,' the Survey had said.

 

Natural farming in India is being promoted through a dedicated scheme of Bharatiya Prakritik Krishi Paddhati Programme (BPKP). The scheme promotes on-farm biomass recycling with major stress on biomass mulching, use of on-farm cow dung-urine formulations, periodic soil aeration and exclusion of all synthetic chemical inputs. Under BPKP, financial assistance of Rs12,200 per hectare for 3 years is provided for cluster formation, capacity building and continuous hand-holding by trained personnel, certification and residue analysis.