South Korea's leading feedmaker Nonghyup Feed Inc. (NOFI) has issued an international tender to purchase up to 207,000 tonnes of animal feed corn and up to 195,000 tonnes of animal feed wheat, European traders said on Wednesday.

 

The deadline for submission of price offers in the tender is also Wednesday, Jan. 26.

FSSAI has issued a draft inviting comments on proposed amendments in the Food Safety and Standards (Food Products Standards and Food Additives) Regulations related to sheep milk and standards of olive oil amongst others.

 

The draft proposed addition of the standards for sheep milk wherein the Fat content is fixed at 3.0 and SnF content at 9.0.

 

It proposed additional standards for variants of olive oil related to ‘Absorbency in ultra-violet K270’.

 

The absorbency has been fixed for extra virgin olive oil, virgin olive oil, ordinary virgin olive oil, refined olive oil, olive oil, refined olive –pomace oil, refined olive –pomace oil, and olive-pomace oil.

 

Further, it includes standards for moringa oil. According to the draft,  moringa oil means the oil obtained by process of expressing clean and sound moringa seed (Moringa oleifera).

 

The draft added additional sub regulations related to standards of oils and fats. A clause 2.2.9 has been added related to Solvent Extracted Crude Vegetable Oils (not for direct human consumption).

 

The clause says that-

 

(1) Solvent extracted crude vegetable oils mean vegetable oils extracted using food grade hexane from sources mentioned in standards of respective edible oils under sub regulation 2.2.1 of these regulations. The oil shall be clear, free from rancidity, adulterants, sediment, suspended and other foreign matter, separated water and added colouring and flavouring substances. These oils shall also be free from Argemone oil.

 

(2) These oils as such are not for direct human consumption and shall be refined before human consumption. The oils so refined, shall conform to the standards specified for respective edible oils laid down under regulation 2.2.1 (16).

 

The draft also details out the standards such oils need to conform.

 

In addition, the draft laid provisions for desiccated coconut. It proposes that the product having oil content 35-60% shall be labelled as “Reduced Fat Desiccated Coconut’.

DGTR (Directorate General of Trade Remedies) of the Department of Commerce has issued 56 final findings since April, 2021 in in Anti-Dumping (AD)/Countervailing Duties (CVD)/Safeguard (SG) investigations.35 more investigations have been started since April, 2021 and many more are in pipeline.

 

It may be noted that the Directorate General of Trade Remedies (DGTR) is a quasi-judicial body functioning under the aegis of the Department of Commerce, Ministry of Commerce and Industry, Government of India. The DGTR serves as a watchdog against unfair trade practices resorted by the producers/ exporters in foreign countries and aims to create a level playing for the Indian industry. The unfair trade practices that the DGTR acts against are in the form of dumped imports or subsidised imports or imports that circumvent existing anti-dumping/countervailing duties. DGTR also protects the domestic industry from surge in imports that harm the Indian industry.

 

The function of the DGTR is to conduct an elaborate investigation into the complaint filed by the Indian domestic producers allegedly injured by the unfair trade practices adopted by foreign producers/ exporters and then take a decision on whether or not to recommend imposition of duty. Final decision regarding imposition of duty recommended by the DGTR is taken by the Ministry of Finance, Government of India.

 

An application to initiate an investigation is generally filed by the domestic industry, after which, the DGTR initiates the investigation and invites participation of all stakeholders – domestic industry, foreign producers, exporters, importers, users and their associations. The DGTR then gathers evidence from each stakeholder to examine the allegations of domestic industry. It is only after the detailed and elaborate examination of facts, data and legal submissions of stakeholders that DGTR arrives at the conclusion regarding recommendation of duty depending on whether or not the domestic manufacturers have suffered material injury or threat of material injury by the dumped or subsidized imports.

 

  All investigations are required to be concluded within 12 months. This period is extendable upto 18 months. However, the average time to complete the investigation has consistently been reduced by the DGTR and it usually endeavours to complete most investigations within 5-7 months for ensuring a faster relief to the domestic industry.

 

Several reforms have been carried out by the Directorate in its processes and procedures through greater use of digital platform, simplification of application formats, annexures and questionnaires and introduction of self-certification in conducting trade remedy investigations.

 

 These steps will minimize the need of physical interface and lead to enhanced speed, efficiency and transparency and will usher in a new regime of trade facilitation by substantially reducing compliance burden on the stakeholders.

 

Introduction of sampling procedure recently for fragmented industry will greatly reduce compliance burden for such segment of domestic industry and facilitate enhanced availment of trade remedy instruments by MSMEs and fragmented industry. 

 

Initiatives were also taken for amendment in the Anti-Dumping, Countervailing and Safeguard Rules. Anti-circumvention provisions have been strengthened and anti-absorption provisions introduced.

 

The duties recommended by the DGTR have had a positive impact on several Indian industries. The Indian industries that have benefited from this duty have been able to enhance their production capacity, attract substantially moreinvestments, and generate more employment.

Algeria's state grains agency OAIC has issued an international tender to buy milling wheat to be sourced from optional origins, European traders said on Monday.

 

The tender sought a nominal 50,000 tonnes but Algeria often buys considerably more in its tenders than the nominal volume sought.

 

The deadline for submission of price offers in the tender is Jan. 26.

The State Bank of India has raised US$300 million from the Taiwanese market through a maiden issue of Formosa bonds at a coupon rate of 2.49 percent. The issuance attracted a wide range of investors, such as supranational agencies, asset managers, private bankers and financial institutions. Meanwhile, the Indian government has also started talks with Taiwan on a free-trade agreement.

 

These developments would normally have been treated as a routine affair between India and Taiwan, but as the countries do not enjoy formal ties, and India has in the past remained hesitant to sign a free-trade agreement with Taiwan, the activities underscore a profound shift in New Delhi’s policy toward Taipei. More to the point, the successive governments before Indian Prime Minister Narendra Modi tried to foster ties with Taiwan in a closet due to their fear of China.

 

Now, India has taken several bold initiatives to openly acknowledge its ties with Taiwan. One such decision was of course to invite Taiwan’s ambassador to Modi’s swearing-in ceremony. Taiwan’s de facto embassy in New Delhi has also been given more public space.

 

The Indian political leadership’s new approach toward Taiwan has inadvertently encouraged Indian print and electronic media to focus on the relationship between the nations.

 

Moreover, there is a strong opinion among Indian experts, former diplomats and the general public that India should take initiatives to consolidate and improve ties with Taiwan.

 

This is a silver lining, because one of the challenges that the two sides continue to face is a lack of public awareness about each other.

 

The nations have also taken steps to foster cooperation in education and research. For example, the Ministry of Science and Technology and the Indian Council of Social Sciences signed an agreement enabling researchers of the two countries to work together on major projects of bilateral benefit.

 

It is not a coincidence that India has inched toward enhancing ties with Taiwan. There are several factors responsible for the change in public and political perception about Taiwan. China is of course a major common factor for the two countries.

 

While New Delhi and Taipei are facing major security threats from the Chinese communist regime, this is the first time that Taiwan, under President Tsai Ing-wen’s (???) leadership, and India, under Modi’s, have strongly positioned themselves against China, and have shown the desire to move beyond the shadow of Beijing in expanding their bilateral cooperation. While Taiwan has assumed a place in India’s Act East Policy, the Tsai government attaches huge importance to India in its New Southbound Policy.

 

It is also a hard truth that except for some political, economic and education initiatives, India has not made an effort to institutionalize the relationship. In turn, the nations’ ties suffer from inconsistency and unpredictability.

 

Learning from the US and even Lithuania, India should attempt to build political relations at some level. This would not only infuse trust in the relationship, but would also bolster Taiwan’s image as a flourishing democracy in Asia. India helping Taiwan would enhance New Delhi’s status among Asian nations and other countries.

 

India should also consider institutionalizing cooperation in several areas of common interest. One such area is bilateral trade and commerce.

 

While India and Taiwan view economic ties as the linchpin of their cooperation, the volume of bilateral trade has only marginally increased from US$6.4 billion in 2011 to US$7.5 billion in 2019. This underscores the need for the two sides to make serious efforts to realize the full potential of economic cooperation.

 

With Taiwan and India desperately trying to reduce their bilateral trade and commerce with China, the two countries can prove to be beneficial for each other in several ways. For example, between April 2019 and February 2020, imports from China were 1.42 trillion rupees (US$19.04 billion) or 40 percent of India’s total imports of electronics.

 

As a major exporter of electronics, including semiconductors, Taiwan holds huge importance for India. Cooperation between the two would not only reduce India’s dependability on China, but would also enable it to develop a safe and secure 5G network.

 

On the other hand, Taiwan would have access to India’s large market. Through India, Taiwan could easily expand its presence in other South Asian countries with which China has close relations.

 

It is equally important that India not merely see ties with Taiwan through a bilateral lens, but from a broader perspective. Enhanced economic ties between the countries would prove to be crucial in building robust global supply chains outside of China. Based upon this reasoning, India has realized the necessity of having a free-trade agreement.

 

While in a significant development the Indian Space Research Organization and the Indian Institute of Space Science and Technology are collaborating with Taiwan’s National Space Organization in launching a cubesat into space this month, it is imperative that the two countries work together on space exploration for civil and military purposes.

 

Taiwan and India should establish a joint working group to explore possibilities for enhanced cooperation, promote understanding of government policies and procedures, and facilitate collaboration by addressing issues promptly.

 

Closer cooperation in international initiatives, such as the Group on Earth Observations as well as efforts to develop a multiple hazards early warning and response system, would serve national objectives on both sides.

 

Another area of cooperation that India and Taiwan should explore is green energy. As India, an energy deficient country, tries to increase the contribution of green energy to its total energy consumption, Taiwan, a major Asian green energy giant, can play a pivotal role in this regard.

 

The time has come for India and Taiwan not only to accelerate the pace of cooperation in areas such as trade and commerce, and people-to-people engagement, but also aim for bilateral engagement in new areas.

 

Sumit Kumar is a former Ministry of Foreign Affairs visiting fellow at National Chengchi University and a post-doctoral fellow at the Indian Council of Social Sciences.

As a major boost to Centre and State collaboration in promoting products under the One District One Product (ODOP) Initiative – a State Conference was held on 21st January, 2022 by the Department for Promotion of Industry and Internal Trade, Ministry of Commerce & Industry. The Conference was chaired by Smt. SumitaDawra, Additional Secretary, Department for Promotion of Industry and Internal Trade (DPIIT) and was attended by Principal Secretaries and other key officers of the Industries Departments of all States.

 

Smt. SumitaDawra, Additional Secretary, DPIIT opened the meeting with a special address that focussed on the successful activities undertaken under ODOP so far and best practices across the states.

 

This was followed by a deep dive into the ‘Changing Narratives for the Manufacturing Sector in Jammu & Kashmir’ by Shri. Ranjan Prakash Thakur, Principal Secretary Industries, Jammu & Kashmir. Herein, the ODOP Initiative’s work in Jammu & Kashmir especially its successes in trade facilitation for walnuts and apples was discussed. The ODOP initiative’s facilitation of Jammu & Kashmir’s representation at the Dubai Expo 2020 and successful buyer-seller meets as well as focused trade discussions conducted therein were also highlighted. The rest of the states would also soon be facilitated to participate in events at an international level.

 

The state of Uttar Pradesh was also able to bring attention to the remarkable success of the UP ODOP Model wherein artisans and producers from all districts of the state have been promoted and assisted under One District One Product (ODOP). The presentation was made by Shri. Navneet Sehgal, Additional Chief Secretary, Micro Small and Medium Enterprises (MSME) and Export Promotion, Uttar Pradesh.

 

UP provides a template for states to successfully implement and take forward the goal of creating each district as a hub for economic development through the product synonymous with it.

 

Smt. Swapna Debnath, Additional Director, Dept. of Industries and Commerce, Tripura outlined a roadmap for ‘Promoting remote districts and boosting local economy’. This included a discussion on the successful collaboration between the State Govt and the ODOP Team thus far, and the next steps that would be taken to promote product development and exports from all the 8 districts of Tripura.

 

Following the presentations from the States, the ODOP Initiative being facilitated by Invest India under DPIIT made a presentation on the scope of work under ODOP, the activities undertaken so far, and the way forward in fostering the vision of balanced regional economic development.

 

Invest India highlighted some of the existing stories of economic empowerment through trade facilitation, capacity building and product development.

 

Some key examples referred to included design trainings for Molela artisans in Rajsamand District, Rajasthan; skill trainings for Muga Silk weavers from Kamrup, Assam, sustained year-year trade facilitation of Lakadong Turmeric from West Jaintia Hills, Meghalaya and the promotion of ODOP products from across districts and categories at international events such as the Dubai Expo 2020.

 

ODOP’s work in e-commerce onboarding and its close association with large e-commerce players to support rural artisans in leveraging web-based sales through dedicated storefronts for ODOP was also discussed.

 

A roadmap for further State engagement with the ODOP Initiative was also laid out. Through the sharing of sellers’ data from the States, the ODOP team would take forward trade facilitation with buyer leads. Further, the appointment of a nodal officer in every state to work hand in hand with the ODOP Initiative would ensure the success of future activities under the same.

 

The Conference was well received by the participants and some including Hage Tari, Principal Secretary, Industries from Arunachal Pradesh expressed their keen interest in participating and wholeheartedly supporting the same in his state. All the principal Secretaries also eagerly shared contact details and sought to stay connected and updated on the ongoing activities under ODOP.

 

Shri B. Ramanjaneyulu, Director, DPIIT concluded the Conference with A Vote of Thanks and Closing Remarks. He urged the Industries Departments from all States and Union Territories to ensure active support for the successful implementation of the ODOP initiative across the length and breadth of the country, to propel the economy towards the goal of Aatmanirbhar Bharat. He also apprised the participants on the inclusion of ‘One District One Product’ initiative as a category for assessing the performance of Civil Servants being considered for the annual Prime Minister’s Awards for Excellence in Public Administration.

 

The successful States Conference marks the recognition of the outstanding success of the ODOP Initiative, while recognizing that it is a first step towards further impactful work towards the vision of Aatmanirbhar Bharat and #VocalforLocal.

The Centre has procured 606.19 lakh tonnes of paddy (or 406.14 lt in terms of rice), so far in the ongoing 2021-22 season (October-September), with maximum quantities being purchased from Punjab, according to the Union Food Ministry.

 

'Till now, 77 lakh farmers have been benefited from the official purchase programme for which the government has transferred Rs1,18,812.56 crore into their bank accounts,' the Ministry said in a statement Monday. During the 2020-21 season, the Centre had procured 895.83 lakh tones (lt) of paddy worth Rs1,69,133.26 crore, benefitting 1.31 crore farmers.

 

Of the total procurement this year, 186.85 lt of paddy have been procured from Punjab, followed by 82.62 lt from Chhattisgarh, 69.08 lt from Telangana, 56.49 lt from Uttar Pradesh and 55.30 lt from Haryana until January 23.

 

The government undertakes procurement operations through state-run Food Corporation of India (FCI) as well as State agencies.

Fresh grapes export from Maharashtra has begun on a sombre note this season. By January 24, 1,480.928 tonnes of grapes have been exported from the State in 113 containers. Compared with the same period a year, 1.06 lakh tonnes of grapes were shipped from the State in 7,694 containers.

 

The export figures available with the Agricultural and Processed Food Products Export Development Authority (APEDA) show that grapes export from the State has not gained momentum. The majority of grapes have been exported to the Netherlands – 1,261.372 metric tonne (MT). The export to other countries including Lativa, UK, Poland, Sweden, etc is not even 50 MT.

 

Of the total grapes exported from Maharashtra 1,468.448 MT is from Nashik district and 12.480 MT from Satara. Many grape growers in the Nashik region are waiting for service providers and exporters to approach them for harvesting.

 

However, service providers and exporters are waiting for the Maharashtra State Grape Growers Association (MSGGA) to clear its stand on the Minimum Support Price (MSP).

 

The MSGGA has announced that the MSP of the export quality grapes will be ?82 per kg in January, ?71 per kg in February, and ?62 per kg in March for this season. The Association says that this amount has been calculated on 10 per cent profit on the production cost of grapes.

 

Discussions between exporters and growers

The recent meeting between the Association and the service providers was inconclusive. However, grape farmers who have cultivated export quality grapes are worried as the export season has started and the issues of MSP remain unresolved.

 

Also, the prediction of unseasonal rains and changes in weather is cause for concern for grape growers. Exporters have already communicated to the farmers that the rate fixed by the Association are unreasonable. However, Association members say that exporters must not spread misinformation among farmers.

 

Export economy

 

The majority of grape growers in Nashik cultivate export quality grapes and exports play a major role in the economy of the region. In the last few years, farmers are cultivating varieties that are in demand in the foreign market.

 

Along with Nashik some parts of Sangli and Satara also export grapes. Farmers producer companies like Sahyadri are helping farmers to cultivate export quality grapes. Association members claimed that the MSP fixed by the members is based on facts and exporters should not stretch the issue beyond a limit.

 

However, traders and exporters have not come out openly on the issue and are waiting for farmers and the Association to take a stand on the revised MSP.

The conference which is going to focus on exploring ways of developing economic relations between the two countries and solving the existing problems in the way of mutual trade will be held in collaboration with India’s PHD Chamber of Commerce and Industry.

 

As reported, the virtual conference is going to be attended by senior officials from both sides including the Indian ambassador to Tehran and Iranian Ambassador to India, as well as the heads of TCCIMA and PHD Chamber of Commerce.

 

The trade between Iran and India has been following an upward trend over the past two years, despite the U.S. sanctions.

 

According to TCCIMA data, the trade between the two countries increased over 74 percent in the first nine months of the current Iranian calendar year (March 21-December 21, 2021) as compared to the same period in the previous year.

 

Based on the mentioned data, the value of non-oil trade between Iran and India stood at $2.4 billion in the mentioned nine months, of which $1.34 billion was the share of exports and about $1.05 billion was for imports.

 

Considering the increase in exports and the decrease in imports from India during this period, the trade balance between Iran and India in the said nine months has become about $296 million positive in favor of Iran.

 

India stood at sixth place among the Islamic Republic’s top export destinations in the mentioned period, while in terms of imports the country occupied the seventh place among Iran’s top sources of imports.

 

Iran imported about 935,000 tons of commodities from India in the period under review, registering a 47 percent decline year on year.

 

Rice was the top commodity imported from India with $220 million, followed by black tea worth $104.4 million, aluminum oxide worth $101 million, and fresh or dried green bananas worth $647 million.

 

The Islamic Republic exported 4.14 million tons of goods including methanol, ammonia, sponge iron, pistachios, toluene, and urea to India in the said time span.

Basmati exports are set to recover in January as Iran, Saudi Arabia, two major destinations, may increase their purchases. This comes after a drop in shipments for three consecutive months since the new crop arrived in October. Besides, the geo-political tension in Ukraine will likely boost shipments.

 

According to trade sources, exporters have signed about 0.25 million tonnes (mt) of contracts for shipments in first three weeks of this month, which is 70 per cent of the volume done in the entire month of January last year.

 

'Ramazan is starting from April 2 and Navruz on March 21. As Saudi Arabia and Iran buy during January-February for these festive demands, there may be good orders. Even if shipments match the year-ago levels in these two months, we will still carry the previous backlog. So, I do not see the target of 4.4 mt being achieved during 2021-22,” said Vijay Setia, former president of All India Rice Exporters Association.

 

Basmati shipments in 2021-22 (April-November) dropped by over 21 per cent to 2.4 mt from year-ago, which has been attributed to base effect of panic buying in 2020 after the Covid pandemic. Despite higher trading activities witnessed during April-November 2020, overall Basmati rice shipments recorded only a marginal four per cent rise at 4.63 mt during the 2020-21 fiscal.

 

Except Iran and Kuwait, Basmati exports to all other major destinations such as Saudi Arab, Iraq, Yemen, UAE, US, UK, Qatar and Oman increased during 2020-21, official data show. 'Iran had curtailed imports in 2020 as it had good domestic crop as well as carry forward stock from the previous year. But its purchase improved in 2021 when there was a decline in other countries,” said an exporter. During April-November 2021-22, basmati exports to Iran increased by three per cent to 0.51 mt from the year-ago period.

 

In December 2021, the registration of exports contracts shows that there was five per cent fall in volume, whereas actual shipments may drop 15-20 per cent as some exporters have been re-negotiating deals with buyers after prices increased, sources said. In November 2021, there was five per cent drop in contracts registration while actual shipments declined 21.4 per cent at 2,38,121 tonnes from the year-ago period.

 

Trade sources also said currently, Basmati prices have increased to $980-990/tonne from $890-900/tonne in October 2021, whereas prices dropped to about $830/tonne in December 2020 from around $970/tonne in October 2020.

 

'Ramazan is starting from April 2 and Navruz on March 21. As Saudi Arabia and Iran buy during January-February for these festive demands, there may be good orders. Even if shipments match the year-ago levels in these two months, we will still carry the previous backlog. So, I do not see the target of 4.4 mt being achieved during 2021-22,” said Vijay Setia, former president of All India Rice Exporters Association.

 

Basmati shipments in 2021-22 (April-November) dropped by over 21 per cent to 2.4 mt from year-ago, which has been attributed to base effect of panic buying in 2020 after the Covid pandemic. Despite higher trading activities witnessed during April-November 2020, overall Basmati rice shipments recorded only a marginal four per cent rise at 4.63 mt during the 2020-21 fiscal.

 

Except Iran and Kuwait, Basmati exports to all other major destinations such as Saudi Arab, Iraq, Yemen, UAE, US, UK, Qatar and Oman increased during 2020-21, official data show. 'Iran had curtailed imports in 2020 as it had good domestic crop as well as carry forward stock from the previous year. But its purchase improved in 2021 when there was a decline in other countries,” said an exporter. During April-November 2021-22, basmati exports to Iran increased by three per cent to 0.51 mt from the year-ago period.

 

In December 2021, the registration of exports contracts shows that there was five per cent fall in volume, whereas actual shipments may drop 15-20 per cent as some exporters have been re-negotiating deals with buyers after prices increased, sources said. In November 2021, there was five per cent drop in contracts registration while actual shipments declined 21.4 per cent at 2,38,121 tonnes from the year-ago period.

 

Trade sources also said currently, Basmati prices have increased to $980-990/tonne from $890-900/tonne in October 2021, whereas prices dropped to about $830/tonne in December 2020 from around $970/tonne in October 2020.

 

'We lost substantial basmati rice market in the European Union. Now, Pakistan and Iran have agreed to take measures to increase the annual trade exchanges to $5 billion by the year 2023 with tariff concession in rice. Further, the development of so-called new Basmati hybrid seed in Pakistan is a serious threat to our authentic appellation. India needs a concrete forward plan to promote genuine and original product in global market,” said foreign trade policy expert S Chandrasekaran..We lost substantial basmati rice market in the European Union. Now, Pakistan and Iran have agreed to take measures to increase the annual trade exchanges to $5 billion by the year 2023 with tariff concession in rice. Further, the development of so-called new Basmati hybrid seed in Pakistan is a serious threat to our authentic appellation. India needs a concrete forward plan to promote genuine and original product in global market,” said foreign trade policy expert S Chandrasekaran..