India’s horticulture sector has proven to be more profitable and productive than the agricultural sector and has emerged as a rapidly growing industry. According to the Agricultural and Processed Food Products Export Development Authority (APEDA), India ranks second in fruits and vegetable production in the world after China. The country's advantage lies in being a low-cost producer of fruits and vegetables because of a combination of factors such as favourable agro-climatic conditions, availability of labour, and low input costs. As a result, fruits and vegetables account for almost 90% of the total horticulture production in the country.

 

Horticulture contributes around 30.4% to the Gross Domestic Product (GDP) while using only 13.1% of the gross cropped area, making it a significant player in India's agricultural growth. In recent years, the total horticulture production in India has even exceeded the total production of food grains, highlighting the potential of the sector. Horticulture not only contributes to the nutritional needs of the country but also creates additional job opportunities in rural areas, expands the range of agricultural activities, and generates higher incomes for farmers.

 

The productivity of horticulture has increased significantly from 8.8 tonnes per hectare (TPH) in 2001-02 to 12.1 TPH in 2020-21, leading to a sharp rebound in production and acreage, far outpacing foodgrains production since 2012-13. In 2021-22, the total horticulture production was around 341.63 million tonnes, with fruit production at around 107.10 million tonnes and vegetable production at around 204.61 million tonnes. With its vast production base in horticulture, there is ample opportunity for export, with fresh fruits and vegetables being a major contributor. APEDA estimates that the country exported fresh fruits and vegetables worth INR 11,412.50 crore during 2021-22. Bangladesh, UAE, Nepal, Netherlands, Malaysia, Sri Lanka, the UK, Oman, and Qatar are the major export destinations for fresh fruits and vegetables.

 

But despite the fact that India's horticulture sector is growing, the country's share in global trade remains insignificant, accounting for only 1% of the global trade in vegetables and fruits. Export growth is being undermined by production challenges, marketing challenges, inadequate transport infrastructure, fragmented supply chains, and insufficient storage facilities. These factors result in delays and wastage and discourage farmers from improving the quality of their produce.

 

The horticulture sector faces many production challenges that stop it from realising its full potential, such as small operational landholdings, lack of irrigation and poor soil management. Take for instance, small operational landholdings that limit the amount of land available for cultivation, which in turn limits the number of horticultural crops that can be produced. Limited land availability also affects crop rotation and the use of sustainable agricultural practices, as small farmers may not have the space to rotate crops effectively or implement sustainable soil management practices. This can lead to reduced yields and decreased soil fertility over time.

 

Insufficient access to water for irrigation, coupled with poor soil management practices such as over-tilling, over-fertilising, and monocropping, can reduce soil fertility, leading to lower yields and lower-quality produce. Lack of irrigation can be particularly detrimental during dry spells or droughts, where crops can quickly wither and die due to insufficient water supply. In contrast, excessive water can also be harmful, leading to waterlogging, root damage, and reduced yields. The Government is addressing the irrigation problem through the Pradhan Mantri Krishi Sinchayee Yojana (PMKSY), which aims to promote the development of irrigation infrastructure, expand the cultivable areas, and enhance on-farm water efficiency. Pests and diseases are another constant threat to horticultural crops. Insect infestations, fungal infections, and other diseases can spread quickly, leading to lower production levels and crop losses.

 

The limited outreach of farm insurance and farm mechanisation, combined with a lack of access to institutional credit for small and marginal farmers, contribute to lower investment in the sector. To ensure the flow of adequate credit, the Government sets annual targets for the flow of credit to the agriculture sector, Banks have been consistently surpassing the annual target. Notably, the Government provides interest subvention of 2% on short-term crop loans up to INR 3 lakh.

 

Climate change, such as changing weather patterns, droughts, floods, and other natural disasters, is another significant challenge that can lead to crop failures and losses, which ultimately affects the sector's overall output. Land lease constraints also pose a challenge, particularly for small farmers who may not have access to adequate land for cultivation.

 

The horticulture sector also suffers because of weak Farmer Producer Organisations (FPOs), which typically play a vital role in the development of the horticulture sector by providing farmers with access to markets, financing, and technical assistance. The weakness of these organisations contributes to the sector's challenges, limiting farmers' ability to benefit fully from the opportunities available. Recognising the need to increase the bargaining power of farmers, the Government is implementing an FPO formation and promotion scheme with a budgetary outlay of over INR 6,300 crore. This scheme aims to promote the formation and strengthening of FPOs and agri-entrepreneurship development among farmers.

 

The horticulture marketing chain faces its own set of challenges due to the perishable nature of fruits and vegetables, which makes it difficult to store and transport them efficiently. Poor logistics and lack of equitable cold storage and warehousing facilities contribute to delays and wastages. The cold storage distribution among the states is inequitable, with around 59% of the storage capacity (i.e., 21 MMT) present in the four states of Uttar Pradesh, West Bengal, Gujarat, and Punjab, and most of it is only for the potato crop. Top crops have a short shelf life because of the absence of storage and warehousing facilities, which causes price rises in the same months every year. There is also a lack of guidance for farmers on which crops to plant, resulting in overproduction of certain commodities and shortages of others.

 

The horticulture sector will have to take measures to improve its production and value chain system. To address the issues faced by the horticulture sector, Bayer and The Economic Times have come together to organise a national seminar called the India Horticulture Future Forum 2023 on 26 April 2023. Grant Thornton Bharat LLP is the Knowledge Partner for the event. The forum aims to deliberate on the future of Indian horticulture, focusing on developments, opportunities, and challenges in the sector.

 

Despite the numerous constraints faced by the horticulture sector, there are several opportunities for improvement. One such opportunity is the Agricultural Marketing and Farmer Friendly Reforms Index, launched by the NITI Aayog, which ranks states and union territories based on their implementation of provisions proposed under the model APMC Act, joining the e-NAM initiative, providing special treatment to fruits and vegetables for marketing, and tax levies in mandis.

 

The Government is also working on reducing crop losses through the Pradhan Mantri Fasal Bima Yojana (PMFBY), which provides comprehensive crop insurance coverage from pre-sowing to post-harvest losses against non-preventable natural risks. Another key initiative is the Centre's Cluster Development Programme which has the potential to revolutionise the value chain by enhancing its scale. The programme aims to promote the integrated and market-led development of pre-production, production, post-harvest, logistics, branding, and marketing activities by leveraging the geographical specialisation of horticulture clusters.

 

Meanwhile, the Ministry of Food Processing Industries has launched several schemes aimed at promoting the food processing industry in India, including the creation of cold chain infrastructure, agro-processing clusters, backward and forward linkages, preservation infrastructure, Operation Greens, and Mega Food Parks. These schemes provide various facilities to food processing units, such as storage, testing labs, and logistics, while also stabilising the supply and prices of perishable commodities and promoting their value addition. The Government has also introduced post-harvest infrastructure schemes to reduce post-harvest losses, a Land Lease Act to help legalise leasing and allow tenants access to insurance and credit, and Soil Health Cards to promote soil health.

 

India is globally recognised as one of the top producers of fruits and vegetables, and the horticulture sector has consistently performed well in terms of production. By implementing these measures, the horticulture sector can expand even further and generate increased profitability for farmers. This growth can also help meet the rising demand for fruits and vegetables, both domestically and internationally.

Union Government after an extensive review of 27 pesticides through an appointed expert committee, based on substantial data on safety and efficacy submitted by the pesticides industry, decided to continue the use of 24 pesticides. This decision has been welcomed and lauded by the agri community, including small holding farmers as they have been already safely using these products for the last decades on multiple crops.

 

This move will ensure that Indian farmers continue to have access to the technology for crop protection at an affordable price, as these pesticides are manufactured in India.

 

Government decision to continue the use of these critical 24 pesticides demonstrates the realities of agriculture and the importance of farmers having access to technology that is affordable as they need to produce quality food at an affordable price compared to exorbitantly expensive imported substitute pesticides.

 

Farmers across the country have welcomed the government's decision, saying that access to safe and effective pesticides is critical for protecting crops and ensuring a good harvest. The continued use of these 24 critical pesticides is a necessary step towards safeguarding India's food production system while ensuring that farmers can continue to produce food efficiently and sustainably.

 

Gavneet Singh, director, Ambala Farmer Producer Organisations, Haryana, said, 'As farmers, we know how important it is to have access to safe and effective pesticides to protect our crops and ensure a good harvest. This decision by Government is a positive step as these pesticides continue to be recommended by the State Agriculture Universities and farmers have the experience of using them safely on their crops.'

 

Harpreet Singh, CEO, Pehowa Farmer Producer Organisations, Haryana, said, 'this is an important step towards safeguarding yield and livelihood. We have worked with these pesticides and confident of its performance. Opting for any alternative may have impacted our input costs and overall production.'

 

Pest and disease control is critical for maintaining the quality and safety of our food supply. The continued use of these 24 critical pesticides is a necessary step as these pesticides are also used as mixture with relatively new products for resistance management against potentially resistant weeds, insects and diseases.

 

Insect pests can create crop damages between 20 – 30 % including grains stored in the warehouses. Pesticides are also used as smart fumigants for grain storage to protect crops from storage insects in wheat, rice, pulses and oil-seeds.

 

Union Government has already approved use of drones for safer and efficient use of pesticides. Pest and disease control is critical for maintaining the quality and safety of our food supply. Pesticides are carefully designed to target specific pests and diseases, and their use is strictly regulated to ensure that they do not harm non-target organisms or the environment.

India improves in the logistics ranking of the World Bank by jumping 6 places to Rank 38 out of 139 countries in the 7th edition of Logistics Performance Index (LPI 2023). India has been taking numerous initiatives since 2015 under the visionary leadership of the Prime Minister Shri Narendra Modi to improve its logistics efficiency. The World Bank has acknowledged India’s efforts towards increasing logistics efficiency. On 4 out of 6 LPI indicators India has seen remarkable improvement on the back of various initiatives being implemented over the past few years.

 

This is a strong indicator of India’s global positioning, with this development being powered by our Government’s laser focus on reforms for improving logistics infrastructure. In October 2021, the Government of India launched the PM GatiShakti National Master Plan (PMGS-NMP) towards a coordinated approach, leveraging technology, for infrastructure planning and development. PMGS envisages breaking silos among different Departments / Ministries in States / UTs by combining all relevant data on a National Master Plan and State Master Plans (portals) respectively. It is a GIS based tool which integrates existing and proposed infrastructure initiatives of different Central Ministries, to ensure first and last-mile connectivity, for seamless movement of people and goods. At the heart is intense communication and extensive data sharing among Central and State agencies promoting collaborative approach. Through the power of technology and collaborative efforts of concerned agencies put together, PM GatiShakti addresses the emerging needs of transforming the logistics landscape due to factors like rapid urbanization, changing energy choices, e-commerce, need to develop resilient supply chains etc.

 

 In September 2022, the Prime Minister launched the National Logistics Policy (NLP) which acts as a guiding document for States / UTs seeking to formulate logistics policy (19 States / UTs have notified their logistics policy). The policy is centred around upgradation and digitisation of logistics infrastructure & services. Further with focus on bringing efficiency in services (processes, digital systems, regulatory framework) and human resources, the policy puts marked emphasis on streamlining processes for seamless coordination, and reduction in overall logistics cost, besides incentivizing employment generation and skilling of the workforce. NLP lays emphasis on the shift towards more energy-efficient modes of transportation and greener fuels to reduce the carbon footprint. The policy also focusses on adopting the usage of multimodal transportation and complementing it by building multimodal logistics parks. Further it emphasized on the importance of targeted policy reforms to improve time spent by cargo at port, airports, and multimodal facilities since most of the delays occur at these locations.

 

 The Government of India also invested in trade-related soft and hard infrastructure connecting port gateways on both coasts to the economic zones in hinterland.  Technology has been a critical component of this effort, with implementation under a public-private partnership of a supply chain visibility platform, which has contributed to remarkable reductions of delays. NICDC’s Logistics Data Bank project applies radio frequency identification (RFID) tags to containers and offers consignees end-to-end tracking of their supply chain. Its implementation started in 2016 on the Western part of India and was scaled up to Pan India level in 2020.  With such initiatives of transparency, visibility, and ease of doing business, there has been significant improvement in cross-border trade facilitation. 

 

Also, the Logistics Data Bank project promotes healthy competition amongst the ports as it provides information on performance benchmarking, congestion, dwell time, speed, and transit time analysis. Over a period, it has also become a repository of data & information relating to the logistics industry and the same is shared with the stakeholders through monthly, quarterly, and annual reports as a source of data for decision making and improving logistics efficiency. The LPI report appreciates the Logistics Data Bank which reduces inefficiencies while connecting hinterland to ports.

 

At a sub-National level, the Department for Promotion of Industry and Internal Trade (DPIIT) has been conducting LEADS (Logistics Ease Across Different States) study since 2018 which helps to identify and resolve logistics inefficiencies and improve trade facilitation across supply chains. On a national level, India has notified Productivity Linked Incentive (PLI) Scheme for boost to creating global champions in manufacturing, PM Mitra Textile Parks, Bulk Drug Parks, other areas of manufacturing and 43 Towns of Export Excellence meticulously focusing on specific sectors for exports and provision of related infrastructure. Resolving the logistics gaps / bottlenecks will help decrease the logistics cost and will lead to increment in logistics efficiency which will contribute to ongoing reforms aimed at India becoming a global manufacturing / production hub in the coming years.

 

Further other initiatives like Sagarmala which aims to improve connectivity to ports and reduce cargo dwell time and Bharatmala which focussed on improving road connectivity of major corridors have played a pivotal role in improving India’s logistics efficiency. The LPI index is a perception-based survey conducted across select stakeholders dealing with respective countries.

Exports of Bengal gram or desi chickpea (chana) have picked up in recent months on robust demand from countries such as Bangladesh and Iran, among others. This is even as procurement by Nafed has gained pace, while prices continue to rule below the minimum support price of Rs.5,335 per quintal across mandis in the key producing States.

 

According to the latest data, exports of desi chana saw an almost 10-fold growth to 52,495 tonnes in February 2023, as compared to 5,373 tonnes in the same period last year, data compiled by IGrain India said. 'With prices ruling below MSP, the resulting export parity, coupled with lower transportation costs to Bangladesh when compared to other origins such as Canada and Australia, led to higher shipments,' said Rahul Chauhan of IGrain India.

 

Bangladesh purchased over 47,518 tonnes in February. Similarly, Iran, Malaysia, Sri Lanka and the UK, stepped up purchases in the month, while other large buyers such as the UAE and Qatar saw a dip in volumes. 'Desi chickpea procurement by Nafed has been good, above 13 lakh tonnes(lt) so far. This has provided good support to the market price. Exports have been much better than last year and shipments to Bangladesh were especially strong. Ramadan was early this year, and so we saw good demand in February,' said Harsha Rai, Vice-President -- Sales, at Mayur Global Corporation, an international broker of pulses.

 

Overall shipments of chana during April-February of 2022-23 were up at over 1.26 lt, an increase of 195 per cent over the same period last year at 42,941 tonnes. Bangladesh has been the largest buyer at over 53,733 tonnes during this period, followed by the UAE at 34,296 tonnes and Iran at over 28,366 tonnes.

 

According to APEDA data, India’s total exports of all categories of pulses during April-February has almost doubled at over 6.44 lt, compared to the same period last year at 3.42 lt. In value terms, India’s pulses shipments during the April-February period of FY 2022-23 were higher by around 74 per cent at $555 million over the same period last year at $318 million.

 

Meanwhile, the procurement of desi chana has picked up, with total purchases by Nafed exceeding 13.76 lt valued at Rs.7,343 crore as on April 25. Procurement in Maharashtra has topped 5.48 lt, while it has crossed 3.76 lt in Madhya Pradesh. In Gujarat, procurement stood at over 2.50 lt, while in Karnataka it has inched up to over 72,318 tonnes. In Andhra, chana procurement stood at 56,406 tonnes, Telangana at 50,238 tonnes, and in Rajasthan it stood at 20,545 tonnes.

 

According to the second advance estimates of the Agriculture Ministry, gram production in 2022-23 is seen at 136.32 lt, ahead of the targeted 135 lt. Last year, production stood at 135.44 lt.

 

Despite rising procurement and growing exports, prices remain below the MSP of Rs.5,335 per quintal across mandis. In Rajasthan, the modal prices of gram ranged between Rs.4,009-4,600 across mandis, while in MP modal prices stood at between Rs.4,525 and Rs.4,750 per quintal across mandis.

The gucchi mushrooms from Jammu are all set to receive the GI tag. Primarily found in the foothills of the Himalayas, they are among the costliest mushrooms in the world with their price ranging between Rs. 20,000 to Rs. 50,000 per kg. Considered a superfood that is rich in vitamins, the wild mushrooms have a spongy texture and a savoury flavour. But what makes them special and what is a GI tag?

 

'The gucchi mushrooms have a very special flavour and their supply is extremely scarce, as they cannot be cultivated artificially unlike many other mushrooms. They are native to cold regions in the Himalayas, grow wild in forests and are difficult to source. Their procurement and supply is also regulated by authorities that own the land, further putting restrictions on their supply and adding to their limited usage and high price,' says Manas Dubashi, a mushroom farmer in Gurugram.

 

Not just rare produce like the mushrooms, GI tags are also given to iconic dishes and regional specialties. Recently Bihar’s famous delicacies ‘khurma’, ‘tilkut’ and ‘balu shahi’ have been pitted for the tag and their application accepted by the competent authority.

 

Khurma is a crunchy snack of fried flour which has been coated with sugar, pretty much like the shakarpara.Tilkut is a crunchy sweet made from sesame seeds and jaggery and balu shahi is a sweet that is crunchy from the outside and has a soft interior.

 

Understanding the tag

 

India has the most number of Geographical Indication (GI) tags for foods and agriculture produce. A GI tag defines the region of origin of a product and helps define what is ‘authentic’. The concept of GI tag was introduced in 2003 under the act of Geographical Indications of Goods (Registration and Protection) Act,1999. Darjeeling Tea was the first to be awarded the tag.

 

'GI tags bring in credibility and trust and define originality. It is similar to the kind of trust any brand name brings in. What it also does is restrict production of similar food items that may be packaged and sold with a similar name, if it’s not for a GI tag. For example, Champagne only comes from the eponymous region in France and all the other similar drinks are sparkling wine,' explains chef Sanjeev Kapoor.

 

'A GI tag impacts marketing and also protects heritage of an item. Take the example of pokkali rice which grow in saline water in Kerala and is not known so much but it would have been lost entirely if didn’t get a GI tag. Today it can be sold for ?200 per kg,' he adds.

 

A GI tag is an indicator that a particular product came from a region and possesses its qualities — of certain flavor, texture, and/or aroma that came about because of the region. Such a credit not only protects authenticity but also helps boost local commerce.

 

'The GI tag creates branding and much larger commercial interests which help the grower or farmer to get better prices for their hard-earned effort. It has a very positive impact on the food world since it allows the users to understand its core origin and the sheer benefits associated with it. It is important that our food ingredients should have specified GI tag for a lager interest so that the entire process is well defined. Right from origin to cultivation to the economics,' says chef Nishant Choubey.

 

A global benchmark

 

Granting a GI tag also helps local produce come in global limelight, further boosting commerce and also establishing their identity internationally.

 

'To me GI is an absolute celebration of regional India under the global spotlight just like Champagne and parmesan. A GI tag is a matter of great domestic pride but also a guard against misuse of identity of produce and an absolute promise of reputation world over,' says chef Varun Inammdar.

 

'Kashmiri kesar, Hyderabadi Haleem, Manipuri black rice, monsooned Malabar coffee, Rasagola from Odisha all have received the GI tag in the past identifying them as products originating in a given place,' chef Tarun Sibal explains with examples.

 

'More and more authentic, distinctive Indian products native to the country and rich in cultural heritage are now looking at GI tags to cement their position and origin. Be it the Khola chili from Goa or Ratlam’s sev, ' he adds.

 

Tagged in the recent past

 

The popular Banarasi paan and langda mango of Varanasi received the tag recently. Ramnagar Bhanta (brinjal), Chandausi’s adamchini chawal (rice), Hathras hing are other produces from UP to get the tag.

 

Murukku, a popular, crunchy snack that is a festive-favourite in Tamil Nadu also recently got the tag after almost a decade-long wait. Cumbum panneer thratchai (grapes), Marthandam honey are other food items from the state to be coveted with the tag.

 

Recently, the tag was also given to Bihar’s popular marcha rice which is known for its aromatic flavour.

Four products that are unique to Goa — bebinca, malcorada mango, seven ridge okra and Agasaim brinjal — have been published in the journal of the Geographical Indication (GI) Registry, which is the final stage in the process of obtaining a GI status for these items.

 

The products will officially have GI status in less than 3 months, following publication.

 

'This is the last phase of the registration process,' said Deepak Parab, the nodal officer for patent facilitation of GI tag in Goa.

 

A GI label indicates a product’s specific geographical origin and the qualities that stem from that provenance.

 

The department of science and technology is the nodal agency to undertake GI registrations for products unique to Goa. These are agricultural produce, handicrafts, food items and handloom articles. The department has designated the Goa State Council for Science and Technology as the facilitator for the work.

 

'After 90 days from the date of publication, the products will officially receive GI status. As a result, from the 91st day onwards, these products are deemed as registered and the GI certificate will be issued immediately,' he said.

 

The certificate will be issued by Chennai-based Geographical Indications Registry — the national body for GI status and registrations.

 

The next edition of the registry will feature the Goan cashew (processed kernel), therefore obtaining the special status for a total of five unique products of Goa, this year.

 

'Though the application for the Goan cashew (processed kernel) has been cleared, it has not yet been published due to some delays in filing the application. Once it is published in the next edition of the GI journal by May, it will acquire GI status,' Parab said.

 

Efforts are being made to acquire GI status for the fruit as well. The state government has therefore organised a meet on Friday for the Goa Cashew Growers’ Association to prepare an application for the Goan cashew (nut and apple). For which, cashew farmers from across Goa have been invited to prepare the pitch.

 

In addition, application for Goan sausage, Mussharat mango, Kunbi saree and handicrafts such as coconut carving and shell items, have also been filed for GI tag. Soon, the state will also seek GI status for korgut rice, Taleigao brinjal and manghilar mango.

India may be in for some tough negotiations on the agriculture front while trying to reach an agreement on its proposed free trade agreement with the UK, if one were to go by a House of Commons Committee (HCC) report.

 

In its fifth report of the 2022-23 session, the HCC has suggested to the UK government to not accede to India’s demand for cutting the duty (tariff) on milled rice, bringing imports of unmilled brown rice into UK under tariff as it is allowed duty-free now and resisting India’s efforts to weaken UK pesticide protections.

 

Other suggestions include seeking a cut in Indian tariff for dairy imports or getting tariff rate quota (TRQ), doing away with the 100 per cent agricultural infrastructure cess for alcohol and looking at 'labour abuses in the tea sector'. 

 

Undermining £900 m/year sector

The HCC said, 'India has a notable offensive interest as regards removing the UK’s tariff on milled rice. The UK Rice Association, which represents the processing industry, has argued that removing this tariff will not reduce retail prices (which are already low) but will undermine a sector worth £900 million per year that provides employment in several English regions.' 

 

The report pointed out the rice association’s argument, along with the Food and Drink Federation, that the UK should instead extend the list of varieties of unmilled (brown) basmati rice allowed to enter tariff-free. It said tariff rate quotas should be granted for other types of brown rice.

 

Key pesticide residue issues

The HCC, referring to a trade commentator’s argument, said allowing imports of more milled rice would result in quality and safety checks being carried out at the borders with attendant costs.

 

The report said there were significant issues around pesticide residues in Indian rice. Campaign groups have suggested that 'it is unlikely that the UK has the infrastructure and resources required to adequately test produce imported from India for pesticide residues'. 

 

HCC said UK’s Pesticide Action Network had said India’s pesticide protections are significantly weaker than the UK’s. There are shortcomings in the observance and enforcement of India’s rules. Consequently, India would have 'much to gain by negotiating to weaken UK standards on pesticide residues so that Indian growers are able to access the UK market and export produce that wouldn’t currently be permitted,' it said. 

 

Other interests

However, changes to the UK SPS standards and rules can only be achieved through legislation. It is, therefore, unlikely that any negotiated agreement would see a reduction in UK SPS standards, the report said. 'Meat and dairy producers indicate that the UK has interests regarding India’s sanitary and phytosanitary checks, which these sectors regard as overly burdensome,' the HCC said. 

 

Another significant UK offensive interest is in respect of removing India’s 150 per cent tariff on alcoholic beverages, which includes 100 per cent agriculture infrastructure development cess.  

 

Other UK interests include reducing India’s dairy tariffs or securing generous tariff rate quotas. India’s argument is that allowing dairy imports could impact micro, small and medium enterprises across a wide range of sectors, including agri-food. 

 

‘Labour abuses’

It is advocating safeguards, appropriate liberalisation timeframes and potential designation of affected sectors as 'sensitive', the report said.

 

The HCC said the Confederation of Indian Alcoholic Beverage Companies had, reportedly, argued that, in exchange for tariff concessions on UK whisky that is imported in bulk and bottled in India, 'the UK must remove technical barriers to Indian whisky imports'. 

 

The Confederation has argued that the UK 'must remove its condition that spirit must be matured for a minimum of three years to be called a whisky because that effectively rules out the bulk of exports from India'.

 

The HCC referred to the Business and Human Rights Resource Centre (BHRRC) drawing attention to 'ongoing violations of human rights and labour rights in India'. These include 'labour abuses in tea supply chains that include forced labour, failure to pay the minimum wage, gender discrimination and suppression of freedom of association,' it said. 

 

2 months’ time

The BHRRC has made it a case for trade liberalisation under an FTA being 'conditional on the mutual ratification and effective implementation of core UN and ILO (International Labour Organization) human rights conventions', the report said. 

 

'India has not ratified the core ILO conventions on Freedom of Association and Collective Bargaining. Neither has it signed the UN Convention Against Torture,' the HCC quoted the BHRRC. 

 

The Rishi Sunak government in the UK has two months’ time to respond to the House of Commons Committee Report. However, the HCC has welcomed the development that 'no longer' puts arbitrary deadlines on trade negotiations. 'While (the) Diwali date was unrealistic, it is positive that the (UK) Government has adopted an approach that evaluates the benefit of trade deal before finalising any agreement,' the report said.

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

 

The origin was optional. The deadline for submission of price offers in the tender is Wednesday, April 26, they said.

Despite starting late, the procurement of wheat has jumped by a quarter to 17.08 million tonnes (mt) as of April 24 against 13.69 mt a year ago. Earlier at the start of the marketing season on April 1, delayed arrivals resulted in the procurement of the cereal being 23 per cent lower until April 16 before gathering momentum.

 

Higher procurement will likely help the government restore the reduced wheat quota under public distribution system (PDS) as a decision is expected next month.

 

The procurement has crossed the halfway mark of the targetted 34.15 mt and it looks like the target is all set to be breached this year by the way grains are arriving so far, said an official source.

 

1.7 m farmers benefit

According to official data, over 1.7 million farmers have benefitted so far from the ongoing procurement season started April 1, with expected outflow of Rs.36,301 crore at minimum support price (MSP) of Rs.2,125/quintal.

 

Punjab, which reported 17 per cent lower procurement until April 19, has also shown an increase in purchases by 3 per cent to 7.63 mt as of April 24 from a year ago. The target in Punjab has been fixed at 13.2 mt this year. It was Punjab which contributed the maximum wheat, more than half of total purchases made for the Central Pool last year and that saved the Centre when exporters and traders paid higher than MSP in other States.

 

Procurement in Madhya Pradesh is up by 66 per cent at 4.29 mt from 2.58 mt whereas the target is to buy 8 mt by June 15. Last year, the Centre could purchase only 4.6 mt against a target of 12.9 mt from the State.

 

Haryana has reported at 40 per cent jump at 5.06 mt from 3.61 mt a year ago and the largest wheat producing State Uttar Pradesh reported a 4 per cent increase in procurement at 86,030 tonnes as on April 24 from 82,578 tonnes in the year-ago period, official data show.

 

Among other States, the government has bought 25,072 tonnes in Rajasthan and 7,270 tonnes in Chandigarh. Gujarat is yet to purchase any quantity while Bihar has reported the procurement at 180 tonnes.

 

Govt to wait

Meanwhile, the government has decided to wait till a month by when the wheat procurement will be almost over to decide if the reduced allocation quota to 10 States, decided in May 2022 due to a drastic fall in wheat procurement, should be restored or not. As much as 6 lakh tonnes per month under the National Food Security Act (NFSA) wheat quota was replaced with the same volume of rice when the Centre revised the allocation last year.

 

The wheat stock in the Central Pool dropped to 8.35 mt as of April 1, which is the lowest in six years. The previous low was at 8.06 mt on April 1, 2017 as procurement dropped by 5 mt in 2016-17 season.

Indian Apex exporters body FIEO has announced that it has signed an MoU with Business Russia to promote trade and investments between the two countries.

 

It said the two organizations will cooperate to arrange exhibitions, buyers-sellers’ meetings, workshops, seminars and encourage enterprises to work in tandem with their counterparts for joint ventures.

 

The Memorandum of Understanding (MoU) was inked during a visit of a 50-member delegation of the agro and food processing sector to Moscow.

 

The delegation is 'exploring opportunities in diverse business ventures such as ready-to-eat meals, fish meal, animal feed, soyabean apart from conventional products,” said N K Kagliwal, Board Member of FIEO (Federation of Indian Export Organisations).

 

Kagliwal is leading the business delegation.

 

He added that exporters are looking to increase agro and processed food exports from about $750 million to over $3 billion in the next three years.

 

About the rupee-ruble trade mechanism, he said it is 'moving forward, but the pace is slow'.

 

FIEO Director General Ajay Sahai said that exporters, importers and bankers on both the sides have to do a little extra work to resolve the issues.

 

A direct exchange rate between rupee and ruble will help streamline the process in a big way,' Sahai said.

 

He added that huge trade deficit is a concern, but it is also an opportunity to push exports from India to Russia.

 

'We have to diversify exports to automobiles and auto components, electronics, medical devices, solar cells, textile, food and agriculture etc,' he said.