The export market has driven chilli prices in retail market northwards. The price per quintal is hovering between Rs 25,000 and Rs 30,000.

 

Sources said there is huge demand for chilli from China, Bangladesh, Indonesia and the UAE. Exports to these nations have gone up steadily for the past two years but the demand has surged unprecedentedly in the current season. Sources said reports about crop damage in chilli producing states including AP, Telangana, Maharashtra, and Karnataka due to unseasonal rains too have triggered market sentiments prompting traders to offer high prices to farmers.

 

The farmers are hopeful of recovering losses incurred due to crop damage. About 10 to 20 per cent crop was damaged due to unseasonal rains in chilli producing areas last month. 'There is massive demand from China, Bangladesh, Indonesia and the UAE. We believe that early onset of Ramzan has triggered sales. Special eateries were opened during Ramzan across the globe to facilitate fasting devotees,' said Sanjay Jain, a leading chilli exporter.

 

Local traders involved in powder making had waited for the price to fall but joined the race when they realised that the markets are on a bull run. This has led to increase in prices as it became a procurement tussle between local traders and exporters. Chilli oil firms which estimated prices to come down at least by April were left red faced and started offering higher prices. 'It is a dream season for farmers and those who have picked up the stocks in advance.

 

Majority of the traders did not anticipate the massive jump in prices and joined the price war only out of compulsion,' said Venkateswara Rao, another chilli exporter. While export quality brands like Teja and Byadigi fetch nearly `30,000 per quintal, even common varieties too have ended with over `22,000 to `25,000 per quintal.

 

The prices were around `8,000 to `14,000 per quintal during the last season. The arrival of stock in the biggest market place for chilli trade in Asia, Guntur Agriculture Market Yard, have come down in the last three weeks as agents of traders went to fields to pick up leftover stocks from farmers. Merchants are lifting stocks directly from farms and shifting to cold storages without bringing to the market yard.

Non-basmati rice exports during the April-February period of the 2022-23 fiscal were up nearly three per cent at 16.09 million tonnes (mt), but the shipments were lower in February by nearly six per cent.

 

But the underlying fact is that the Indian government stands to gain good revenue to the tune of a billion dollars in view of the export duty on the shipments as the global market has accepted the duty, besides India’s market share remaining intact.

 

According to data from the Agricultural and Processed Food Products Export Development Authority (APEDA), exports in the first 11 months of the 2022–23 fiscal were up compared with the 15.64 mt shipped out in the same period of 2021–22. In terms of value, exports fetched $5.72 billion, against $5.56 billion in the year-ago period.

 

Two factors to consider

However, there are two factors to consider in the data, exporters and traders say. One, shipments seemed to have been dragged a tad since September 2022 due to the Centre announcing export curbs, including imposing a 20 per cent duty on non-basmati consignments and banning fully broken rice shipments.

 

For example, exports in February were 1.53 lakh tonnes (lt) compared with 1.63 lt in the year-ago period. But earnings were higher at $563.88 million against $552.02 million. 

 

The second factor is that India holds on to its leadership in the market, with importers absorbing the duty hike.

 

'India will get an additional billion dollar revenue from the exports by imposing duty. With the country enjoying 45 per cent market share,  the global rice market has absorbed the impact of the Indian duty,' said BV Krishna Rao, President, The Rice Exporters Association (TREA).

 

In terms of rupee, rice exports should now be able to fetch the Indian government Rs.8,000 crore, he said. 

 

Demand still strong

According to available data, rice exports region-wise in the April-February period of 2022–23 were mixed. Shipments to Bangladesh, Nepal, and South-East Asia dropped. But exports to Africa, the European Union, the Americas, and Gulf countries increased. 

 

According to the Foreign Agricultural Service (FAS) New Delhi Post of the US Department of Agriculture, despite Indian imposing curbs on exports, demand for Indian rice in the global market remains strong. 'Global rice prices have risen to absorb the export tax,' it said. 

 

The USDA’s FAS Post said Indian domestic supplies are forecast to be ample and the government is unlikely to impose additional export restrictions in the near term. 

 

No problem till kharif

At the same time, the Government will be reluctant to relax existing restrictions out of fears of food inflation. 'While India’s export restrictions have not dampened export demand, they have generated an additional source of tax revenue for the government,' it said. 

 

Rao said rice exports should have no problem until November-December this year, before the new crop from competing nations such as Thailand, Vietnam, and Pakistan enter the market. 

 

'Pakistan might not face the problems it faced last year due to its worst flood in 61 years. Our kharif could be arriving by then. The Centre can review its export curbs based on market conditions then,' he said.

 

Though the Centre has banned exports of fully broken rice, it is permitting its shipments on a case-by-case basis. Recently, it permitted 3.5 lakh tonnes of consignments to Gambia and Senegal based on the Ministry of External Affairs’ recommendations. 

 

Improving competitiveness

'We have to see if there is a shift to white rice in a small way or other alternative before reviewing the decision on duty. But we are still improving our hold on the market despite the duty,' Rao said. 

 

The USDA’s FAS Post sees the export duty on Indian rice exports continuing in the near future. 

 

Meanwhile, India’s competitiveness in the global market has improved again over Vietnam, Thailand, and Pakistan. From being competitive by around $10 a tonne a month ago, it has improved by over $25 now. The competitiveness has improved as Indian prices have been lowered, while countries such as Vietnam and Thailand have raised their offer rates. (See table)

 

Rice exports are likely to be boosted by projections of a record high production of 130.83 mt this crop year, despite kharif output being affected due to a deficient monsoon in eastern parts of the country.

Soybean Processors Association of India (SOPA) has estimated exports of soyabean meal from India in the oil year 2022-2023 to touch 14 lakh tonne, higher than the last year.

 

The oil year 2022-2023 began in October 2022 and will end in September 2023.

 

SOPA executive director DN Pathak said, 'We expect to achieve slightly better exports in soybean meal in the oil year 2022-23 at 14 lakh ton.' A jump in demand from South East Asian buyers has pushed exports of soyabean meal from India, said exporters. Vietnam, Sri Lanka, Nepal and Bangladesh have emerged as major buyers for Indian origin soyabean meal.

 

Madhya Pradesh is a leading soyabean producing state contributing over 70 per cent to total national output.

 

Soyabean meal exports during October to March stood at 9.9 lakh ton. Exports of soyabean meal in the corresponding period last year were 4.7 lakh ton, according to data compiled by SPOA. In March, soyabean meal exports were 2 lakh ton as against 48,000 ton in the same period a year ago, SOPA said in a statement.

 

Arrivals of soyabean has declined in the spot market in March as compared to the previous month, the data showed.

 

Pathak said, 'Farmers have held back stocks due to a decline in soyabean prices and this has hit arrivals in the spot market in March. Soybean crushing was also lower than expected in March and demand for soybean food products also saw a drop.'

 

Exporters have estimated better bookings from overseas buyers for the ongoing season if soyabean prices remain stagnant in the spot market.

The International Association of Rice Bran Oil (IARBO), in association with the Solvent Extractors Association of India (SEA), will organise the seventh International Conference on Rice Bran Oil from April 21 to 23 in Hyderabad.

 

Focussing on the theme ‘Awesome rice bran oil for sustainable ecosystem’, the three-day conference will explore avenues to tap the rice bran opportunity across the world.

 

Over 400 delegates, including those from rice bran oil-producing countries like China, Thailand, Japan, Pakistan, and Bangladesh, will attend the conference.

 

'The conference will discuss the latest research on rice bran oil and value-added products. It will also discuss country-specific challenges, if any, in exploring opportunities in this space,' BV Mehta, Secretary-General of IABRO and Executive Director of SEA India, said.

 

Addressing a press conference here on Tuesday, he said the conference would promote interaction between rice bran producers, industry groups, academic researchers, and local governments.

 

Ajay Jhunjhunwala, President of SEA India, said it would be the second time for the country to host the conference. 

 

RBN Prasad, a former Chief Scientist with the Indian Institute of Chemical Technology (IICT), wanted the conference to establish the international scientific standard of rice bran oil and value-added products derived from the oil.

 

P Chandra Shekhara Reddy, Joint Convener of the Conference and Senior Vice-President (Sales and Marketing) of Gemini Edibles and Fats India, said rice bran oil is stable at high temperatures, making it an ideal choice for Indian way of cooking.  

Traders and millers of pulses have requested the government to increase the minimum support price (MSP) of pigeon peas (tur dal) to encourage the farmers to grow the pulse.

 

'The production of pulses has been low this year and hence the prices were ruling high. Encouragement from the government will help farmers choose the crop,' said Suresh Agrawal, president, Dal Mill Association.

 

Prices of tur and urad jumped 8-10% last month which prompted the central government to set up a committee to monitor the situation pulses, although the prices have dropped since then.

 

Agrawal added that tur takes longer time in the field compared to moong and other pulses, which makes it the least preferred legume for farmers. The MSP of tur is also lower than moong at Rs 6600/quintal as opposed to Rs 7755 of moong.

 

India has already decided to import additional quantities of tur dal (pigeon peas) in the marketing year 2023-24 to meet the domestic demand as production in the country is expected to drop.

 

The marketing year for tur is from December to November.

 

Tur is mainly imported from east African nations and Myanmar. The Centre had earlier extended the import of tur and urad pulses under the 'free' category for another year, till March 31, 2024, according to a notification by the Department of Commerce.

 

The decision has been taken to ensure seamless import of these pulses and palm oil to augment the domestic availability and ensure affordable rates for consumers.

In a positive sign for state government's efforts in the agriculture sector, Telangana has witnessed almost 40% increase in agriculture exports between 2020 and 2022. While agriculture exports stood at Rs 6,337 crore in 2020-21, it rose substantially to about Rs 10,000 crore in 2021- 22.

 

According to the data recently released by the central government, Telangana and Maharashtra are two states which have shown marked growth in agriculture exports. In just five years, from 2017-18 to 2021-22, it has increased from Rs 5,000 crore to Rs 10,000 crore in Telangana.

 

Telangana's top exports include cotton, spices, cereals and meat. According to experts, the exports from Telangana have improved due to innovative methods, increased use of technology and cold storage facilities.

 

'Considering that Telangana has no coastline, the improvement clearly shows how better infrastructure has helped the sector grow substantially,' said Kotha Bhaskar Reddy, an exporter from NiIzamabad who deals in fruits.

 

As per the data, cotton exports totalled Rs 3,055 crore in 2021-22, while spices, coffee and tea accounted for Rs 1,936 crore. Cereals contributed Rs 1,480 crore and meat exports accounted for Rs 268 crore. The state also exports rice, maize, lemon, grapes, mango and soyabean.

 

The data from the state also shows that total foreign direct investment inflows in the agriculture sector in the country have a high share from Telangana. The state attracted FDI worth Rs.3,000 crore between 2019- 2021.

 

Currently, state is focussing on increasing the exte-nt of oil seed farming which will increase exports base.

Exports of soyameal and value-added soya products were up by 110 per cent for the first six months of the oil year 2022-23 starting October. This was mainly on account of huge purchases by Vietnam and neighbouring Nepal and Bangladesh.

 

According to Soyabean Processors Association of India (SOPA), shipments of the meal were up at 9.99 lakh tonnes for the October-March period of oil year 2022-23 against 4.74 lakh tonnes in the year-ago period.

 

The production of soyameal for the period was higher at 48.59 lakh tonnes (33.52 lakh tonnes). However, due to the dip in market arrivals of soyabean during March, crushing also slowed down.

 

'Due to falling soyabean prices, farmers are holding stocks due to which, arrivals in March were much lower compared with the previous month. Soyabean crushing was also lower than expected. Demand for soyabean food products was also lower. We expect to achieve or slightly better the export target for soyabean meal which is 14 lakh tonnes,' DN Pathak, Executive Director, SOPA said.

 

Vietnam, a major buyer

Vietnam has bought over 4.34 lakh tonnes (lt) of soyameal, accouting for about 43 per cent of the overall Indian shipments. Nepal was the second largest buyer followed by Bangladesh.

 

Other large buyers of the Indian soyameal include the US, Japan, Sri Lanka, and Thailand among others. SOPA has targeted exports of 14 lt, higher than 6.44 lt logged in last year.

 

SOPA has estimated the production of soyabean during 2022 kharif season at 120.4 lt. Including the carry forward stocks of 25.15 lt and likely imports of 2 lt, the total availability is expected to be 147.55 lt.

 

Market arrivals of the bean during the Octpber-March were up 26 per cent at 77 lt against 61 lt a year ago. Imports of soyabean are lower at 1.57 lt compared with 2.48 lt a year ago.

Union Finance Minister Nirmala Sitharaman on Monday (local time) while speaking at the Peterson Institute for International Economics (PIIE) on Free Trade Agreements in Washington said that FTAs are being signed in a much 'faster' way nowadays and also informed that the India-UK Free Trade Agreement (FTA) negotiations are 'going on as we speak.'

 

This confirmation comes at a time when a recent report suggested that the FTA talks between the two countries are suspended over the UK's failure to denounce vandalism by Khalistsupporters outside the Indian High Commission in London last month.

 

'Free Trade Agreements are being signed in a much faster way nowadays. We've just concluded one with Australia. Earlier we concluded with UAE, Mauritius and with ASEAN. We have extended quota-free and tariff-free regime to Least Developed Countries,' the Finance Minister said.

 

Speaking on India's wish to pursue trade with multilateral groups, she said, 'I think India has shown very clearly its initiative is working out well in pursuing with countries and agreeing to have FTA with them. We've had agreements with ASEAN, free trade agreements both in goods and services with ASEAN, we have had with Korea, with Japan. So free trade agreements have bilaterally or with multilateral groups been the route which India has had till before 2014 and now between 2019 and today, we've had at least three major agreements signed. So, we shall proceed in that route, with the United Kingdom, the European Union, and Canada. All three are happening now as we speak, the negotiations are going on. So we shall go in those preferential routes.'

 

Earlier today India dismissed as 'baseless' reports in British media stating that it had halted talks for a free trade agreement with the United Kingdom over the attack on the Indian high commission in London last month, government sources said on Monday.

 

London-based newspaper The Times in its April 10 edition citing senior British government sources reported that the Indian government has 'disengaged' from trade talks and made it clear that there would be no progress 'without a public condemnation of the Khalistan movement.'

 

The India-UK Free Trade Agreement talks were launched on June 17, 2022.

 

Sitharaman further urged World Trade Organisation (WTO) to bring transparency in terms of moratorium.

A three-day meeting of Agricultural Chief Scientists (ACS) of G-20 countries will take place as first of five meetings of G-20 slated in Varanasi from April 17.

 

Talking to TOI on Saturday, district magistrate S Rajalingam said, 'First of the series of five G-20 events scheduled in Varanasi will be meet of ACS. All necessary preparations on the part of district administration has been completed to host the event.'

 

The PIB released the agenda of ACS meet as per which senior level officials, policymakers, scientists, and experts of the G-20 member states and invited countries and international organizations will participate to discuss and identify R&D priorities in agriculture and strengthen cooperation for sustainable agriculture and food systems transformation.

 

This year the theme of the ACS meet is sustainable agriculture and food systems for healthy people and planet under the overarching G-20 theme ‘One Earth-One Family-One Future’.

 

The important areas for discussion during the MACS are role of scientific innovations in sustainable agriculture and food systems for food security and nutrition, promoting millets and ancient food grains, resilient and nature-positive agriculture, digital agriculture, and public-private partnership in agricultural R&D.

 

The excursion for delegates to Sarnath, Ganga aarti, and trade facilitation is also included in the program. The meeting will be held under the Chairmanship of Secretary, DARE & DG, ICAR with active involvement and support of the state government and district administration.

Madhya Pradesh horticulture and food processing department has identified a total 18 products, as specialty of different areas in the state, to apply for geographical indication (GI) to help global promotion of the same.

 

Excited with Rewa district’s Sundarja Mango recently receiving the coveted GI tag, horticulture and food processing department has prepared a list of total 18 products including jeeravan of Indore, Alirajpur’s Noorjahan mango, Kumbhraj dhania of Guna, Bhata (eggplant) of Narsinghpur district’s Barman Ghaat, Khursani Imli of Mandu, Balam Kakdi of Sailana, Khargone’s red chili.

 

Other products that the department is making effort to get the GI tag are mango of Betul, Jabalpur’s peas and water chestnut, sitafal of Seoni, Malwi Potato, Malwi garadu, Narsinghpur district’s jaggery, banana of Burhanpur, Chhattarpur district’s paan, Kodo-Kutki of Dindori along with eggplant and tomato (Deshi) of Balaghat district.

 

'All these products are unique and famous for many reasons including the qualities and the characteristics that is essentially due to the place of the origin for the climate, soil and other natural conditions at the particular geographical area,' Nidhi Nivedita, director at the horticulture and food processing department said.

 

'The GI tag not only helps in global promotion of the products, but also in promoting the conservation of local traditional production processes and protecting and adding value to the cultural identity of local communities,' she said.

 

'All these unique 18 products will be registered to get the GI Tag as the state government and the department are committed help the unique horticulture harvest earning a distinguished identity in the country and across the world, along with right value of the same,' she said, adding that Rewa district’s Sundarja Mango is the horticulture product that recently received the GI Tag.

 

Other products that have received the tag include Wrought iron crafts and Gond painting of Dindori, Ujjain’s Batik print, Gwalior’s handmade carpet, Waraseoni handloom saree & fabrics, Jabalpur’s stone craft, Morena’s Gajak along with Sharbati wheat that is mainly produced in Sehore and Vidisha district of MP.