India and the UK are likely to launch formal negotiations for a free trade agreement (FTA) in the second week of this month followed by the first round of talks after a week, people aware of the development said.

 

'The idea is to launch the negotiations and the first round of talks this month,' an official told ET.

 

While a delegation comprising representatives of the UK's trade ministry and businesses is to visit India to launch the negotiations, the two sides may consider doing a virtual launch amid rising Covid-19 cases, sources said.

 

The two sides plan to put in place an interim agreement by March 2022 followed by a comprehensive agreement. The interim trade pact would involve early tariff or market access concessions on certain key high priority products and services, they said.

 

Whisky, cars, vaccines, basmati rice, wool, yarn, instant coffee, and tea pre-mix top Indian industry's list of products identified for duty cuts. India also wants enhanced mobility for its professionals.

 

The UK is keen on tariff reduction on Scotch whisky and a bilateral data adequacy agreement prior to the finalisation of a full-fledged free trade agreement.

 

Reduction or removal of tariffs on automotive products, and removal of barriers to trade in food and drink, services, and healthcare and medical device sectors are among the objectives of proposed agreement, sources said.

 

'The UK is keen to ink trade agreements after Brexit and India is a natural partner for it,' said the official cited above.

 

The India-UK Joint Economic and Trade Committee (Jetco) would also meet during the launch of the negotiations.

 

India's exports to the UK in FY21 were $8.15 billion (?60,700 crore) and imports were $4.95 billion (?36,850 crore). Last year, the two countries had agreed on an enhanced trade partnership with the goal to double bilateral trade to £50 billion, or about Rs 5 lakh crore, by 2030.

The India-UAE free trade agreement is expected to cover more than 1,000 products across sectors.

 

Senior commerce ministry officials said the Union cabinet is likely to vet the deal as soon as the negotiations between the sides come to a fruitful end.

 

If the Modi government clears the trade deal, it would be the first free trade agreement to be signed by India after a decade.

 

Exports from India that could benefit from the pact include textiles, gem &  jewellery, petroleum products, engineering & machinery products and chemicals.

 

The gains will, however, be limited as the import duties on most goods are at 5 per cent in the UAE.

 

Besides, the duties on most agriculture products, such as meat, fruits & vegetables and tea,are already at zero per cent, so India is unlikely to make substantial gains in the area, the officials said.

 

The UAE has also drawn up a long list of products, including food items such as dates and confectionery for duty concession.

 

The officials said the list of trade items are being monitored closely as India needs to protect domestic industry.

 

While FTA would provide access to the Indian markets, it should not result in the routing of products from other countries, especially China, they said.

 

The ministry officials said to prevent any misuse of FTA benefits and curb potential illegal inflows of Chinese goods through a key transit hub such as Dubai, India will insist on strict rules of origin.

 

It may either stipulate a 35 per cent value addition at the UAE for all products to be eligible for duty concession under the FTA or impose similar conditions on select products where it sees the maximum scope for abuse, they added.

 

They pointed out that the UAE has zero duty or very low duties on a majority of items, making it easier for it to be part of free trade agreements.

 

About 87 per cent of the products that the UAE imports are currently taxed at 5 per cent, while 11 per cent attract zero duty.

 

The rest see higher duty incidence or are in the prohibited or special lists of goods, the officials said.

 

Services pact

 

Market access in services, including mutual recognition agreements, would also be crucial, the officials said.

 

In services, both sides might negotiate a deal on labour-intensive sectors, which would ensure free movement of skilled professionals. This is expected to boost job creation in both the countries.

As part of initiative of Food Safety and Standards Authority of India (FSSAI) to address the issue of malnutrition and other health related issues among the people, 3 milk processing units including M/s Zum Zum Milk Products, M/s Haleeb Milk Products and M/s Insha Dairy Limited, operating from IGC, Lassipora Pulwama have initiated the process for fortification of milk with vitamin A and D, with the assistance of FSSAI and Food & Drugs Administration, J&K.

 

In this regard, FDA in collaboration with FSSAI had conducted a 3 day awareness cum training programme for Food Business Operators engaged in processing and manufacturing of milk and milk products in Srinagar with regard to food fortification.

 

Executive Director, FSSAI and Commissioner Food and Drugs Administration held a series of interactive sessions on food fortification with various stakeholders including on ground officers and officials of Food and Civil Supplies & Consumer Affairs, Social Welfare, School Education and Health Departments besides Food Business Operators engaged in manufacturing/processing of milk and milk products, rice and wheat flour.

 

An onsite training programme was also organized at Jammu and Kashmir Milk Producer’s Co-operative Limited (JKMPLC) located at Chashm-e-Shahi, Srinagar, in collaboration with PATH, an NGO associated with FSSAI for awareness and training of Food Business Operators on food fortification.

 

During the training programme, representatives of various milk processing units were given training about fortification of milk with Vitamin A and D. Subsequent to the training, a number of processing units of district Pulwama decided to take part in the nation-wide fortification initiative of FSSAI.

 

Commissioner FDA, while elaborating about the initiative, underscored the need of fortification of rice, wheat flour, oil and milk with various micronutrients such as vitamin A and D, vitamin B complex, iron and iodine to address various health related issues like anemia and malnutrition. He said that the percentage of anaemia is very high among women and children including children up to the age of 5 years in India, as per the National Family Health Survey (NFHS-5) and situation is no different in J&K. ‘FSSAI, apart from fortification of rice, oil and salt, has already rolled out recommendations for fortification of skimmed milk, double toned milk, toned milk and standardized milk with 770 IU of Vitamin A and 550 IU of Vitamin D per litre of milk’, he added.

 

He said the fortification will help provide 15-30 per cent of the daily requirement for these Vitamins adding that milk fortification is a safe and cost effective method for adding nutrients to milk which is consumed by all people and its consumption by children is reasonably high. Vitamin A and D that are added to milk, help to improve body’s immunity against infections, improve vision and help to make the bones strong, he added.

 

He said that Food & Drugs Administration, J&K as well as FSSAI, will provide all kind of necessary assistance for successful implementation of fortification of milk, rice, wheat flour, oil with micro-nutrients as it is an effective medium of addressing micronutrient malnutrition.

A.Creation of Infrastructure Facilities

 

A total of 110 food processing projects were completed/operationalized viz; Mega Food Park:1, Cold Chain:37, Unit:68, Food Testing Laboratories:4

 

The 110 completed projects havecreated additional processing and preservation capacity of agricultural produce of 14.84 lakh MT per annum. 37 cold chain infrastructure projects created additional milk processing and storage capacity of 16.58 lakh litre per day and 40.10 MT/hour of IQF (Instant Quick Freezing) of fruits and vegetables.

 

The 110 completed projects leveraged private investment of Rs. 1441.32 crore and generated direct and indirect employment for 17398 persons.

 

B.Approval of New Infrastructure Facilities

 

A total of 94 food processing projects were sanctioned viz; Agro Processing Clusters:19, Cold Chain:39, Unit:18, Operation Greens:1, Food Testing Laboratories:15 and Mega Food Park:2.

 

The 94 new food processing projects sanctioned will create additional processing and preservation capacity of agricultural produce of 8.70 lakh MT per annum. The 39 cold chain infrastructure projects will create additional milk processing and storage capacity of 6.90 lakh litre per day and 40.05 MT/hour of IQF of fruits and vegetables.

 

The new 94 sanctioned projects are expected to leverage private investment of Rs. 1286.42 crore and generate direct and indirect employment for 30766 persons.

 

C. Notification of NIFTEM Act 2021

 

National Institute of Food Technology Entrepreneurship and Management (NIFTEM) Act 2021 was passed by Parliament in year 2021 to declare NIFTEM and IIFPT as Institutions of National Importance (INI). The NIFTEM Act 2021 came in force on 01.10.2021 The INI status will enable the institutes to have functional autonomy,premium branding of the institution,start new innovative courses,attract best faculties / students,adopt global standards in academics and R&D,have flexibility to have foreign collaborations, andopen new centers.

 

D.Atmanirbhar Bharat Abhiyan

 

1. Production Linked Incentive Scheme for the Food Processing Industries

 

As part of Hon’ble Prime Minister’s announcement of Aatmanirbhar Bharat Abhiyan, the Government, on 31st March, 2021, approved a Central Sector Scheme, namely “Production Linked Incentive Scheme for Food Processing Industry” with an outlay of INR 10,900 crores to be implemented for a period of seven years from 2021-2022 to 2026-27.

 

The primary objectives of this scheme are to support creation of global food manufacturing champions; support Indian brands of food products in the international markets; increase employment opportunities of off-farm jobs; and ensure remunerative prices of farm produce and higher income to farmers.

 

Specific food product segments having high growth potential have been identified for providing support under the scheme. These include ready to cook/ready to eat (RTC/ RTE) foods including millet based products, processed fruits & vegetables, marine products and mozzarella cheese. Support to innovative and organic products of SMEsfor these product segments and overseas marketing &branding are also covered under the scheme.

 

The guidelines were issued on 2nd May, 2021 and evoked a good response from the industry. A total of 274 applications were received, out of which 129 applicants have been selected. Out of this, 60 applicants were selected under Category-I, 12 applicants under Category-II and 57 applicants under Category-III.  Out of the 60 applicants selected under Category-I, 14 applicants were also given approval of incentives under Category-III.

 

The implementation of PLI scheme is likely to facilitate expansion of food processing capacity by nearly Rs. 30,000 crore and create additional direct and indirect employment opportunities for about 2.5 lakh persons by the year 2026-27. The proposed investments of nearly INR 9,000 crore are likely to result in increase in sales of food products from INR 62,621 crore in FY 2019-20 (base year) to INR 1,80,276 crore in FY 2026-27. A positive stimulus to domestic industry is expected as the scheme stipulates that in order to get incentive, the entire chain of manufacturing processes, including primary processing of the food products shall take place in India. A positive impact on export sales will also be witnessed, with increase likely from about INR 13,500 crore in 2019-20 (base year) to about INR 57,000 crore in FY 2026-27.

 

2. PM Formalisation of Micro food processing Enterprises (PMFME)

 

The Prime Minister- Formalisation of Micro Food Processing Enterprises (PM-FME) scheme, aimed at promoting ‘vocal for local’ in the sector, under the Atmanirbhar Bharat Abhiyan, was launched in June 2020 to support 2 lakh micro food processing units with credit linked subsidy with a total outlay of Rs.10,000 crore over the period 2020-2025.

 

The Scheme adopts One District One Product (ODOP) approach to reap the benefit of scale in terms of procurement of inputs, availing common services and marketing of products.ODOP has been approved for 710 districts of 35 States/ UTs with 137 unique products.

 

Jordan's state grain buyer has issued an international tender to buy 120,000 tonnes of milling wheat which can be sourced from optional origins, European traders said on Friday.

 

The deadline for submission of price offers in the tender is Jan. 5.

 

A new tender had been expected after Jordan purchased 60,000 tonnes of wheat in its previous tender for 120,000 tonnes which closed on Dec. 29. GRA/TEND

 

Shipment in the new tender is sought in a series of possible combinations in 60,000 tonne consignments.

 

Possible shipment combinations are in 2022 between July 1-15, July 16-31, Aug. 1-15 and Aug. 16-31.

In line with the continued commitment and resolve to empower grassroot level farmers, Prime Minister Shri Narendra Modi released 10th instalment of financial benefit under Pradhan Mantri Kisan Samman Nidhi (PM-KISAN) scheme today via video conferencing. This enabled the transfer of an amount of more than Rs. 20,000 crore to more than 10 crore beneficiary farmer families.During the programme, Prime Minister also released equity grant of more than Rs. 14 crore to about 351 Farmer Producer Organizations (FPOs), which will benefit more than 1.24 lakh farmers. Prime Minister interacted with FPOs during the event. Union Minister Shri Narendra Singh Tomar and Chief Ministers, LGs, Agriculture Ministers and farmers from several states were linked to the event.

 

Interacting with FPO from Uttarakhand, the Prime Minister inquired about the choice of organic farming by them and the  ways of certification of the organic products. He also talked about the marketing of the organic products of the FPO. The FPO also told the Prime Minister how they arrange for organic fertilizers. The Prime Minister said that it has been the efforts of the government that natural and organic farming is widely promoted as it reduces the reliance on chemical fertilizer and improves the income of the farmers.

 

The FPO from Punjab informed the Prime Minister about the ways of disposing off the parali without burning.  They also talked about the superseeder and  help from government agencies. The Prime Minister wished that their experience of Parali management should be emulated everywhere.

 

FPO from Rajasthan talked about the honey production. They said that concept of FPO has been very useful for them with the help of NAFED.

 

FPO from Uttar Pradesh thanked the Prime Minister for creating FPOs as foundation of the prosperity of the farmers. They talked about their process of helping the members with seeds, organic fertilizers, variety of horticulture products. They also talked about helping farmers with getting benefits of the government schemes. They are getting benefits of e-Nam facilities. They promised to fulfil the Prime Minister’s vision of doubling the farmers income. The Prime Minister said that the confidence of the country’s farmer is the key strength of the country.

 

FPO from Tamil Nadu informed that with NABARD support, they formed FPO to get better prices and the FPO is fully owned and operated completely by women. They informed the Prime Minister that Sorghum is being produced due to the weather conditions of the area. The Prime Minister said Nari Shakti’s success is indication of their indomitable will power. He asked the farmers to take benefits of millet farming.

 

FPO from Gujarat talked about natural farming and how cow-based agriculture can reduce the expense and stress on soil. Tribal communities of the region are also benefitting from the concept.

 

Speaking on the occasion, the Prime Minister offered his condolences for the victims of stampede at Mata Vaishno Devi shrine. The Prime Minister also informed that he talked to the LG Shri Manoj Sinha regarding the arrangements for the injured.

 

The Prime Minister said that today when we are entering the new year,  we need to embark upon a new journey taking inspiration from the achievements of the past years. The Prime Minister recalled the nation’s effort in fighting the pandemic, vaccination and making arrangement for the vulnerable sections during the difficult period. Country is spending 2 lakh 60 thousand crore rupees on making ration available to the vulnerable sections. The Prime Minister said that the governemnt is working relentlessly to strengthen its medical infrastructure. He listed efforts like new oxygen plants, new medical colleges, wellness centres, Ayushman Bharat Health Infrastructure Mission and Ayushman Bharat Digital Health Mission in the direction of revamping medical infrastructure.

 

The country is moving with the mantra of SabkaSaath, Sabka Vikas and SabkaPrayas. Many people are spending their lives for the country, they are building the country. The Prime Minister said that they used to do this work earlier also, but now there work is being recognized.  'This year we will complete 75 years of our independence.This is the time to start a new vibrant journey of the country's resolves, to move forward with renewed vigour', he said. Elaborating on the power of collective effort, the Prime Minister pointed out 'when 130 crore Indians take one step, it is not merely one step but it amounts to 130 crore steps.'

 

Speaking about economy, the Prime Minister said that on many parameter, Indian economy is looking better than pre-covid days. He pointed out that 'today the growth rate of our economy is more than 8%. Record foreign investment has come to India. Our forex reserves have reached record levels. Old records have also been surpassed in GST collection. We have also set new records in the matter of exports, especially in agriculture.' He said that in 2021 transection of more than 70 lakh crore rupees was done on UPI. More than 50 thousand start-ups are working in India out of these 10 thousand came up during last six months.

 

Year 2021, the Prime Minister said, was also the year of strengthening India’s cultural heritage. Initiatives like beautification and development of Kashi Vishwanath Dham and Kedarnath Dham, Renovation of Samadhi of Aadi Shankaracharya, restoration of stolen idol of goddess Annapoorna, construction of Ram Mandir in Ayodhya and getting World Heritage status for Dholavira and Durga Puja festival are strengthening India’s heritage and enhancing its tourism and pilgrimage potential. 

 

Year 2021 was an year of optimism for the Matra-Shakti also. Sainik Schools were opened for girls along with the doors of National Defence academy. In the year just gone by, attempts  were initiated for raising marriage age for girls be raised to 21, equal to boys. Indian sports persons also brought glory to the nation in 2021. India is making unprecedented investment in the sporting infrastructure of the country, the Prime Minister informed.

 

Leading the world against climate change, India has also set a target of Net Zero Carbon Emission in front of the world by 2070. Many records of renewable energy, the Prime Minister said, are being met by India before time. Today India is working on hydrogen mission, taking lead in electric vehicles, he pointed out.  The Prime Minister continued and said  that PM Gatishakti National Master Plan is going to give a new edge to the pace of infrastructure construction in the country. 'Giving new dimensions to Make in India, the country has implemented ambitious plans for new sectors like chip manufacturing, semiconductor', he added.

 

The Prime Minister summarized the mood of today’s India saying 'devotingto the nation with the spirit of 'Nation First', is becoming the sentiment of every Indian today. And that is why, today there is unity in our efforts and in our resolutions.There is impatience for accomplishment. Today there is consistency in our policies and farsightedness in our decisions.'

 

The Prime Minister said that PM Kisan Samman Nidhi is a big support for India’s farmers. If we include today’s transfer,  more than 1.80 lakh crore rupees have been transferred directly to the accounts of the farmers, he said.

 

The Prime Minister said that through FPO’s small farmers are feeling the power of collective strength. He pointed out five benefits of FPOs for small farmers. These benefits are increased bargaining power, scale, innovation, risk management and adaptability to the market conditions. Keeping in mind the benefits of FPO’s the government is promoting them at every level. These FPOs are getting help of upto 15 lakh rupees. As a result, FPOs like Organic FPOs, Oil Seed FPOs, Bamboo clusters and Honey FPOs are coming up all over the country. 'Today our farmers are benefitting from the schemes like ‘One District One Products’ and markets, both nation and global, are opening for them', the Prime Minister said. He said that reliance on imports is being reduced by schemes like National Palm Oil Mission with a budget of 11 thousand crore rupees.

 

The Prime Minister talked about the milestones that were achieved in the agriculture sector in the recent years. Food grain production touched 300 million tonnes, similarly Horticulture and floriculture production reached 330 million tonnes. Milk production also increased almost 45 per cent in last 6-7 years. About 60 lakh hectare land was brought under micro irrigation; more than 1 lakh crore were given in compensation under Prime Minister FasalBimaYojna, whereas premium received was just 21 thousand crores. Ethanol production increased from 40 crore litres to 340 crore litres in just seven years. The Prime Minister also informed about the Goberdhan Scheme to promote bio-gas. If there will be value in cow dung, he said, the non miltching animals will not be burden on farmers. The Government has established Kaamdhenu Commission and is strengthening dairy sector infrastructure.

 

The Prime Minister once again pushed for promotion of natural farming. He said that chemical-free farming is a major way of protecting the health of soil. Natural farming is a key step in this direction, he said. He asked for making every farmer aware of the processes and benefits of natural farming. The Prime Minister concluded by calling upon the farmers to keep on doing innovation in farming and support the movement like cleanliness.

India has appealed against a ruling of the World Trade Organization's (WTO) trade dispute settlement panel which ruled that the country's domestic support measures for sugar and sugarcane are inconsistent with global trade norms, an official said.

 

The appeal was filed by India in the WTO's Appellate Body, which is the final authority on such trade disputes.

 

India has stated that the WTO's dispute panel ruling has made certain 'erroneous' findings about domestic schemes to support sugarcane producers and exports and the findings of the panel are completely 'unacceptable' to it.

 

The panel in its ruling on December 14, 2021 recommended India to withdraw its alleged prohibited subsidies under the Production Assistance, the Buffer Stock, and the Marketing and Transportation Schemes within 120 days from the adoption of this report.

 

Ruling in favour of Brazil, Australia and Guatemala in their trade dispute against India over New Delhi's sugar subsidies, the WTO panel has stated that the support measures are inconsistent with WTO trade rules.

 

The official said that the dispute panel's findings are unreasonable and not supported by the WTO rules and also evaded key issues which it was obliged to determine.

 

'The panel's findings on alleged export subsidies undermine logic and rationale. India has appealed in the appellate body of the WTO against the panel's ruling,' the official added.

 

In 2019, Brazil, Australia and Guatemala dragged India into the WTO's dispute settlement mechanism alleging that New Delhi's domestic support measures to producers of sugarcane and sugar and export subsidies are inconsistent with global trade rules including various provisions of the WTO's Agreement on Agriculture, Agreement on Subsidies and Countervailing Measures, and the General Agreement on Trade and Tariffs (GATT).

 

Brazil is the largest producer and exporter of sugar in the world. India is the world's second largest sugar producer after Brazil. In December 2020, the government had approved a subsidy of Rs 3,500 crore to sugar mills for the export of 60 lakh tonnes of sweetener during the ongoing marketing year 2020-21 as part of its efforts to help them clear outstanding dues to sugarcane farmers.

 

In the previous marketing year 2019-20 (October-September), the government had provided a lump sum export subsidy of Rs 10,448 per tonne. Mills exported 5.7 million tonnes of sugar against the mandatory quota of 6 million tonnes set for the 2019-20 season (October-September), according to official data.

 

These three countries, which are members of the WTO, had complained that India's support measures to sugarcane producers exceeds the de minimis level of 10 per cent of the total value of sugarcane production, which according to them was inconsistent with the Agreement on Agriculture.

 

They had also flagged India's alleged export subsidies, subsidies under the production assistance and buffer stock schemes, and the marketing and transportation scheme.

 

According to WTO rules, a WTO member or members can file a case in the Geneva-based multilateral body if they feel that a particular trade measure is against the norms of the WTO.

 

Bilateral consultation is the first step to resolve a dispute. If both the sides are not able to resolve the matter through consultation, either can approach for the establishment of a dispute settlement panel. The panel's ruling or report can be challenged at the World Trade Organization's Appellate Body.

 

Interestingly, the appellate body of the WTO is not functioning because of differences among member countries to appoint members in this body. Over 20 disputes are already pending with the appellate body. The US has been blocking the appointment of the members.

 

Even if the body, which is the final arbiter on such trade disputes, starts working from now, it would take over an year to take up India's appeal.

 

According to trade experts, if the appellate body also passes a ruling against India's support measures, New Delhi has to abide by that and make appropriate changes in the way it provides those measures.

 

Professor Biswajit Dhar of Jawaharlal Nehru University (JNU) said that the political class has to redesign those support measures if the appellate body passes a ruling against it.

 

But, he said, India should strongly fight in the WTO against the way subsidies are calculated in the WTO as they are wrong.

 

'While calculating subsidies, today's prices can not be compared to prices in 1986-88. This is wrong. A larger battle has to be fought on how much price support can India give in the WTO,'

The Agricultural and Processed Food Products Export Development Authority (APEDA) on Friday said it is focusing on creating infrastructure and clusters in collaboration with state governments to promote outbound shipments. Exports of agricultural and processed food products have risen to $20.6 billion during 2020-21 from $17.3 billion in 2011-12.

 

'We continue to focus on creating infrastructure for boosting exports by focusing on clusters in collaboration with state governments while taking into consideration the aim of Agriculture Export Policy, 2018,' said M Angamuthu, chairman, APEDA.

 

Non-basmati rice contributed close to one-fourth of the total exports in 2020-21, followed by basmati rice and buffalo meat.

 

Benin, Nepal, Bangladesh, Senegal and Togo were the top importers of non-basmati rice. Major export destinations for basmati rice in 2020-21 were Saudi Arabia, Iran, Iraq, Yemen and the United Arab Emirates.

 

For buffalo meat exports, the top importing nations were Hong Kong, Vietnam, Malaysia, Egypt and Indonesia, APEDA said.

 

India's share in the world agricultural exports stood at 2.1% in 2019, up from 1.71% in 2010.

 

India’s agricultural and processed food exports have grown at a steady pace in the last decade notwithstanding several logistical challenges faced in the global trade of the commodities.

 

Exports of agricultural and processed food products under Agricultural and Processed Food Products Export Development Authority (APEDA) basket rose to USD 20,674 million (Rs 15,30,50 crore) during 2020-21, from USD 17,321 million (Rs 83,484 crore) in 2011-12, according to data by the Directorate General of Commercial Intelligence and Statistics (DGCI&S).

 

Non-Basmati Rice has emerged as India’s top export item among the many agricultural and processed food product exports under APEDA basket, contributing close to one fourth of the total exports in 2020-21.

 

Top three products in the APEDA export basket in 2020-21 were Non-Basmati Rice (23.22% share), Basmati Rice (19.44%) and Buffalo Meat (15.34%) and these products together account for 58 per cent of total shipments.

 

India’s Non-Basmati rice exports was valued at USD 4799.91 million (Rs 35,477 crore) in 2020-21, with Basmati Rice exports a close second at USD 4018.71 million (Rs 29,850 crore), followed by Buffalo Meat exports at USD 3171.19 million (Rs23,460 crore).

 

Benin, Nepal, Bangladesh, Senegal and Togo were the top importers of Non-Basmati Rice from India in 2020-21. Major export destinations for Basmati Rice in 2020-21 were Saudi Arabia, Iran, Iraq, Yemen and United Arab Emirates. For Buffalo Meat exports, the top importing nations were Hong Kong, Vietnam, Malaysia, Egypt and Indonesia.

 

'We continue to focus on creating infrastructure for boosting exports by focusing on clusters in collaboration with state governments while taking into consideration aim of Agriculture Export Policy, 2018,' Dr M Angamuthu, Chairman, APEDA, said. 

 

APEDA has been engaged with State Governments for the implementation of Agriculture Export Policy. Maharashtra, U.P., Kerala, Nagaland, Tamil Nadu, Assam, Punjab, Karnataka, Gujarat, Rajasthan, Andhra Pradesh, Telangana, Manipur, Sikkim, Uttarakhand, M.P., Mizoram and Meghalaya have finalized the State Specific Action Plan for exports while the action plans of other States are at different stages of finalization.

 

According to World Trade Organization (WTO) data, India’s agricultural exports touched USD 37,371 million in 2019 against USD 23,106 million in 2010, recording a compounded annual growth rate (CAGR) of 5.49 per cent during the last ten years. CAGR of the world's agricultural exports was 3.11 per cent during 2010 to 2019.

 

India’s share in world agricultural exports stood at 2.1 per cent in 2019, moving up from 1.71 per cent in 2010. However, India’s rank in worldwide agricultural exports slipped to 16 in 2019 from 17 in 2010, according to data released by the World Trade Organization (WTO).

 

In terms of share of top ten products exports under APEDA basket, there has not been much change in the last one decade even as India’s exports reached more countries across the world. The top ten APEDA exports in share terms in 2020-21 were Non-Basmati Rice (23.22%), Basmati Rice (19.44%), Buffalo Meat (15.34%), Miscellaneous Preparations (3.84%), Groundnuts (3.52%), Cereal Preparations (3.08%), Maize (3.07%), Wheat (2.66%), Processed Vegetables (2.43%), Processed Fruits, Juices & Nuts (2.07%) and Cashew Kernels (2.03%).

 

In 2011-12, the top ten APEDA export in share terms were Guargum (19.89%), Basmati Rice (18.60%), Buffalo Meat (16.56%), Non-Basmati Rice (10.43%), Groundnuts (6.32%), Maize (6.21%), Cereal Preparations (2.26%), Fresh Onions (2.07%), Alcoholic Beverages (1.76%) and Processed Vegetables (1.47%).

 

In 2020-21, the top ten products in the APEDA export basket account for more than 78 per cent in total exports against 85 per cent in 2010-11.

 

Top ten APEDA exports in value terms during 2020-21 were Non-Basmati Rice (USD 4799.91 million / Rs 35,477 crore), Basmati Rice (USD 4018.71 million / Rs 29,850 crore), Buffalo Meat (USD 3171.19 million / Rs 23,460 crore), Miscellaneous Preparations (USD 793.08 million / Rs 5,866 crore), Groundnuts (USD 727.4 million / Rs 5,382 crore), Cereal Preparations (USD 635.75 million / Rs 4,706 crore), Maize (USD 634.85 million / Rs 4,676 crore), Wheat (USD 549.7 million / Rs 4,038 crore), Processed Vegetables (USD 502million / Rs 3,719 crore) and Processed Fruits, Juices & Nuts (USD 428million / Rs 3,173 crore).

 

Top ten APEDA exports in value terms during 2011-12 were Guargum (USD 3446.37million / Rs 16,524 crore), Basmati Rice (USD 3222.31 million / Rs 15,450 crore), Buffalo Meat (USD 2869.36 million / Rs 13,757 crore), Non-Basmati Rice (USD 1806.03 million / Rs 8,659 crore), Groundnuts (USD 1094.25 million / Rs 5,246 crore), Maize (USD 1075.7 million / Rs 5,158 crore), Cereal Preparations (USD 392.21 million / Rs 1,889 crore), Fresh Onions (USD 359.36 million / Rs 1,723 crore), Alcoholic Beverages (USD 304.4 million / Rs 1,459 crore) and Processed Vegetables (USD 254.56 million / Rs 1,250 crore).

 

The rise in export of agricultural and processed food products has been largely due to the various initiatives taken by APEDA such as organizing B2B exhibitions in different countries, exploring new potential markets through product specific and general marketing campaigns by active involvement of Indian Embassies.

 

APEDA has also taken several initiatives to promote geographical indications (GI) registered agricultural and processed food products in India by organizing virtual Buyer Seller Meets on agricultural and food products with the major importing countries across the world.

 

In order to ensure seamless quality certification of products to be exported, APEDA has recognized 220 labs across India to provide services of testing to a wide range of products and exporters.

 

APEDA also assists in up-gradation and strengthening of recognized laboratories for export testing and residue monitoring plans. APEDA also provides assistance under the financial assistance schemes of infrastructure development, quality improvement and market development for boosting export of agricultural products.

 

APEDA organizes participation of exporters in the International Trade Fairs, which provides a platform to the exporters to market their food products in the global marketplace. APEDA also organizes National events like AAHAR, Organic World Congress, BioFach India etc. to promote agri-exports.

 

APEDA also initiates registration of pack-houses for horticulture products for meeting the quality requirements of the international market. Registration of export units for peanut shelling and grading and processing units, for instance, is to ensure quality adherence for the EU and non EU countries.

 

APEDA carries out registration of meat processing plants and abattoirs for ensuring compliance with global food safety and quality requirements. Another key initiative includes development and implementation of traceability systems which ensure the food safety and quality compliances of the importing countries. For boosting exports, APEDA compiles and disseminates various international trade analytical information, market access information amongst exporters and address trade enquiries.

India’s cereals exports continue to surge notwithstanding disruption of global supplies because of COVID19 pandemic.

 

In the first seven months (April-October) of the current financial year (2021-22), India’s wheat exports in terms of volume rose by more than 527 per cent to 3.2 Million Tonne (MT) from 0.51 MT reported during April-October period of 2020-21. In terms of value, India’s wheat exports in the current fiscal (April – October) rose by 546 per cent to $ 872 million from $ 135 million reported during the same period of the previous fiscal.

 

In the current financial year (2021-22), India’s wheat exports is expected to achieve an all-time record high as it has already surpassed shipment of 2.09 MT achieved during 2020-21.

 

With India being the world’s top rice exporter, wheat exports have witnessed a 48.56 percent compounded annual growth rate (CAGR) during 2016-2020. The country’s wheat exports touched $ 243 million in 2020 against $ 50 million in 2016, according to ITC Trade Map, 2021 data.

 

India's wheat exports are mainly to neighbouring countries with Bangladesh having the largest share of more than 54 per cent in both volume and value terms in 2020-21. In 2020-21, India entered new wheat markets such as Yemen, Afghanistan, Qatar and Indonesia.

 

The top ten importing countries for Indian wheat in 2020-21 are Bangladesh, Nepal, United Arab Emirates, Sri Lanka, Yemen, Afghanistan, Qatar, Indonesia, Oman and Malaysia, according to data by Directorate General of Commercial Intelligence and Statistics (DGCIS). Top ten countries which accounted for more than 94 per cent of India’s wheat exports in 2016-17, now have 99 per cent share in exports in 2020-21 both volume and value terms.

 

Though India is not among the top ten wheat exporters in the global trade, its rate of growth in exports have surpassed that of all these countries, indicating the rapid strides it is taking in reaching new markets worldwide.

 

The rise in wheat exports has been achieved because of the Agricultural Products Exports Development Authority (APEDA) taking up various initiatives such as organizing B2B exhibitions in different countries, exploring new potential markets and initiating marketing campaigns with active involvement of Indian Embassies.

 

.We are giving thrust on building infrastructure in the value chain for giving boosts to cereal exports in collaboration with the state governments and other stakeholders such as exporters, farmer producer organizations, transporters etc,. Dr. M Angamuthu, Chairman, APEDA said.

 

India accounts for even less than one per cent in world wheat export. However, its share has increased from 0.14 per cent in 2016 to 0.54 per cent in 2020. India is the second largest producer of wheat with a share of around 13.53 per cent of world total production. India produces around 107.59 MT of wheat annually while a major chunk of it goes towards domestic consumption.

 

The unit price of wheat also plays an important role in international trade. While the unit export price of wheat has increased for all countries in the last five years, India’s unit export price is slightly higher than that of other countries. This is one of the factors adversely impacting wheat exports from India.

 

APEDA has been focusing on facilitating shipments by Indian exporters and helping them make inroads into new markets. In March 2021, it organized its first Virtual Trade Fair – India Rice and Agro Commodity Show, where participation of wheat exporters was also organized. Since physical meetings cannot be organized due to the Covid-19 pandemic, it has been organizing a series of virtual buyer-seller meets with Embassies, importers, exporters and product associations from India in the last two years. The virtual sessions involved wheat exporters also. A sensitization programme for wheat startups was organized to familiarize them about export opportunities.

 

In order to ensure seamless quality certification of products to be exported, APEDA has recognized 220 labs across India to provide testing services for a wide range of products and exporters.

 

APEDA also assists in upgradation and strengthening of recognized laboratories for export testing and residue monitoring plans. APEDA also provides assistance under the financial assistance schemes of infrastructure development, quality improvement and market development for boosting export of agricultural products.