The Vietnam Trade Office in India, in collaboration with the National Investment Promotion and Facilitation Agency of India (Invest India) and the Federation of Indian Export Organisations (FIEO) held a teleconference on February 22 to step up business cooperation opportunities in farm produce and processed food.

 

Speaking at the event, Vietnamese Ambassador to India Nguyen Thanh Hai said the food processing sector accounts for 32% of the total food market and 14% of the manufacturing industry’s GDP of India. The sector is expected to draw 33 billion USD in investment in the next decade.

 

With a population of over 1.4 billion people, India is a promising market for Vietnam’s farm produce and processed food. Meanwhile, several kinds of India’s farm produce and processed food are likely to be sold well in Vietnam such as seafood, chili, spices, fruits and vegetables, he added.

 

Le Thanh Hoa, Deputy Director of the Agro Processing and Market Development Authority under the Vietnamese Ministry of Agriculture and Rural Development, said during 2021-2022, Vietnam’s farm produce exports to India reached 351 million USD, accounting for 1.3% of India’s total farm produce imports, a modest figure.

 

General Secretary of the Vietnam Fruit and Vegetables Association (Vinafruit) Dang Phuc Nguyen said more Vietnamese farm produce target meeting VietGAP and GlobalGAP standards.

 

He suggested both nations open their markets for fruits and vegetables and sign bilateral trade deals to facilitate trade in farm produce.

 

Vietnamese Commercial Counsellor in India Bui Trung Thuong wished that firms would continue joining trade exchange and market introduction programmes, particularly the upcoming event with the India state of Kerala on March 8 in the fields of agriculture, seafood and services.

 

In terms of agro-forestry-aquatic product trade, Vietnam is running a deficit with India, with 473.8 million USD in 2021 and 687.73 million USD in 2022.

The Government has approved the integration of 101 agricultural produce marketing committee (APMC) mandis (markets or yards) into the electronic platform e-NAM, which is expected to bring the total number of such mandis to 1,361 by March 31. More mandis joining the platform will likely boost its turnover in current fiscal from over Rs.51,000 crore in 2021-22.

 

In the current fiscal, 260 mandis have so far joined the electronic National Agriculture Market (e-NAM) platform, bringing the total to 1,260. Spread over 22 States and 3 union territories, 2,40,500 traders and 1,08,237 commission agents have registered on the electronic platform. About 1.75 crore farmers have registered, along with 2,433 farmer-producer organisations (FPOs). The platform allows online trading in 203 agricultural and horticultural products.

 

The government is planning to enrol private mandis that are ready to join the platform, which the State government may be requested to facilitate, sources said. However, as there are many mandis in the private sector that are not keen to join e-NAM as they are dealing with one commodity for their own purposes, the plan has not taken off.

 

Platform of Platforms

In July last year, Agriculture Minister Narendra Singh Tomar launched the Platform of Platforms (POP) within the e-NAM portal in Bengaluru. With the introduction of POP, farmers are facilitated to sell their produce outside their State borders as it increases digital access to multiple markets and buyers. It has brought transparency to business transactions with the aim of improving the price search mechanism and quality commensurate price realisation, officials said.

 

As many as 41 service providers from different platforms are covered under POP, facilitating various value chains services like trading, quality checks, warehousing, fintech, market information, and transportation. The PoP has created a digital ecosystem, benefitting from the expertise of different platforms in different segments of the agricultural value chain.

 

As of December 31, 2022, total trade of 69 million tonnes worth Rs.2.42 lakh crore, of which one-fifth was only in the last fiscal, has been recorded on the e-NAM platform since its launch in 2016.

 

'On a daily basis, over 70 per cent of the commodities that are put on sale are either partially or fully sold on the same day, which is a good sign. However, a lot needs to be done, as the location of the e-NAM auction hall inside the mandi should be well advertised and more farmers should first try the online option before moving to a commission agent,' said a former top official of the agriculture ministry.

The India Pulses and Grains Association (IPGA) and IBRAFE, Brazil, have signed a MoU at the recently held sixth edition of the Pulses Conclave in Mumbai to establish co-operative actions to contribute to the food security of both countries. IBRAFE is the Brazilian Institute of Beans, Pulses and Special Crops.

 

As part of the MoU, both countries will take steps to foster the development of international trade between India and Brazil. The said MoU lays emphasis on market intelligence, food security, quality standards, trade promotion, technology transfer, incentive to investments, an IPGA statement said.

 

IPGA and IBRAFE shall work towards promoting pigeon peas (tur) and black matpe (urad) and any other pulses crop of mutual interest including research in pre-harvest and post-harvest activities.

Due to record shipment of rapeseed and soyabean meals, key ingredients in cattle feed, India’s exports of oilmeals rose by 70% to 3.29 million tonne (MT) during April-January (2022-23) compared to a year ago.

 

Industry sources said that the exports of oilmeals after extraction of oil from  rapeseed mustard, soyabean, rice bran and castor seeds in the current fiscal is likely to touch a record 4 MT because of robust global demand due to competitive prices offered by India.

 

South Korea, Vietnam, Thailand, Bangladesh and Taiwan are the key export destinations of oilmeals.

 

According Solvent Extractors’ Association (SEA) of India, the exports of rapeseed meals touched a record 1.91 MT in the first ten months of the current fiscal while surpassing the previous record exports of 1.24 MT in 2011-12.

 

According to BV Mehta, executive director, SEA, currently the country is supplying rapeseed meal to South Korea, Japan, Vietnam, Thailand and other Far-East countries at $250/tonne (fob) while meal sourced from Germany is quoted at $428/tonne.

 

'The shipment of oilmeals from India takes about 8-10 days to reach Far-East countries while shipment from Europe takes about three weeks or more,' Mehta told FE.

 

He said the better realisation from rapeseed (mustard) oil and export of rapeseed meal has given a boost to domestic prices of mustard seed besides resulting into record sowing area under mustard this season.

 

Area under mustard in the current rabi season (2022-23) has been reported at a record 9.8 million hectare which is 64% more than last five years’ average sown area of 6.4 MH. In the 2021-22 season, mustard sown areas stood at 9.1 MH.

 

The agriculture ministry has projected mustard seed production for the current crop year (2022-23) at a record 12.81 million tonne (MT) against 11.96 MT of production estimated in previous crop year.

 

The export of soyabean meal rose by 77% to 0.55 MT during April-January of 2022-23 on year. Officials say that the fall in the domestic soyabean prices to around `4,700/quintal from a level of `7,640/quintal prevailing in April 2022 encouraged larger crushing of the crop and better price parity.

 

Until last week, soyabean meal price from Argentina was quoted at $619/tonne while India’s soyabean meal was quoted at $585/tonne. The soyabean seed production in the current crop year is estimated at a record 12.81 MT against 11.96 MT in the 2021-22 crop year.

 

The soyameal from India is largely exported to South East Asian countries because of logistical proximity and smaller lots size. 'Indian soyabean meal, being non-GMO, has an advantage and is preferred by certain European countries and the US,' according to a SEA note.

Israel's handing over of the strategic port of Haifa to the Adani Group is a reflection of the trust that the country has on India, Israeli ambassador Naor Gilon said on Wednesday.

 

At a media briefing, the envoy also said that both India and Israel are keen on finalising the proposed free trade pact as it could further boost overall bilateral trade ties.

 

Gilon indicated that there could be a forward movement on the Free Trade Agreement (FTA) during the upcoming 'high-level' visit.

 

Describing defence ties between the two countries as very strong, he said Israel has an advantage to support India in its efforts to become self reliant in defence manufacturing because of the 'long-standing' trust in the area between the two countries.

 

On the Adani Group acquiring the Haifa port last month, Gilon said it was sign of Israel's trust on India and it could boost bilateral trade. It was a very important move from our side as Haifa is a strategic port, he said.

 

The Adani Group last month acquired the strategic port of Haifa for $1.2 billion and vowed to transform the skyline of this Mediterranean city as part of its decision to invest more in the Jewish nation.

 

The Port of Haifa is the second largest port in Israel in terms of shipping containers and the biggest in shipping tourist cruise ships.

 

In his remarks, the Israeli envoy also said that there is a great potential to expand cooperation in areas of renewable energy, smart mobility, agriculture, healthcare, water and cyber and homeland security.

India faced challenges during the Covid-19 pandemic but has recovered 'strongly' and can achieve 8% growth through a stronger private sector, land and agriculture reforms, and ensuring credit gets to small enterprises, among others, said David Malpass, president of the World Bank.

 

This is the right time for India to attract investment amid a global diversification of supply chains and manufacturing, he told ET in an interview, calling for a focus on making the country competitive. Malpass is in India to attend a meeting of G20 finance ministers and central bank governors. He met Prime Minister Narendra Modi and finance minister Nirmala Sitharaman on Wednesday.

 

On global monetary tightening, the outgoing World Bank chief said interest rates were abnormally low over the past decade and the world should plan on this normalising. He warned that developing countries, in particular, are facing much higher financing costs and interest rates on their debt.

 

Supply chain diversification

 

Malpass also said the world should do more about climate change, particularly in the area of adaptation.

 

The World Bank is working on debt restructuring for those countries that have unsustainable levels of debt, 'which in the current environment (is) a high percentage of the countries,' he said. It 'is clear now that there had been too much dependency by Europe on Russia for energy and too much dependency by the world on China,' and a healthy diversification was underway.

 

India could benefit from some of this supply chain and manufacturing diversification. 'I think there's good potential for India to attract more... I really think that this is a moment where India can make progress,' said Malpass, underscoring the areas where policy changes would help.

 

The country needs to focus on competitiveness, and that means regulatory policies that boost skills to encourage investment, both domestic and foreign, he said, reiterating the World Bank's strong support for India.

The emerging markets and developing economies are expected to account for around 80 per cent of the global growth this year and the next. Of this, India alone is expected to contribute over 15 per cent, said the International Monetary Fund’s Managing Director Kristalina Georgieva on Wednesday.

 

Terming India’s strong economic performance a ‘bright spot’, Georgieva said that beyond being the global growth engine, India is uniquely positioned to bring countries together.

 

'At a time of heightened uncertainties for the global economy, India’s strong performance remains a bright spot. So, it’s fitting that Group of Twenty finance ministers and central bank governors will gather in Bengaluru this week,' she said.

 

The Second Finance and Central Bank Deputies Meeting under India's G20 Presidency began Wednesday. Finance ministers and central bank chiefs from G20 nations will join the meeting on Friday.

 

The meeting in the Nandi Hills summer retreat is the first major event of India's G20 presidency and the war in Ukraine is likely to feature prominently during the proceedings.

 

Russia’s military operation on neighbour Ukraine dominated headlines for most of 2022, with global growth, already marred by inflationary pressures, taking a hit.

 

The IMF said that while this will be another challenging year, it could represent a turning point with inflation declining and growth bottoming out.

 

'Indeed, while our latest projections show global growth slowing to 2.9 per cent this year, we anticipate a modest rebound to 3.1 per cent in 2024,' Georgieva said.

 

The First G20 Finance Ministers and Central Bank Governors (FMCBG) meeting under the G20 Indian Presidency scheduled later this week is expected to address some of the key global economic issues.

 

It is expected to cover issues such as strengthening multilateral development banks to address shared global challenges of the 21st century, financing for resilient, inclusive, and sustainable 'cities of tomorrow,' and leveraging Digital Public Infrastructure (DPI) for advancing financial inclusion and productivity gains.

 

The sessions will also cover issues related to global economy, healthcare, and international taxation.

 

The discussions in the G20 FMCBG meeting scheduled on February 24 and 25, to be jointly chaired by Union Finance Minister Nirmala Sitharaman and RBI Governor Shaktikanta Das are intended to provide a clear mandate for the various work streams of the G20 Finance Track in 2023.

 

To further the cause of debt restructuring, the IMF, World Bank, and India’s G20 presidency are convening a new Global Sovereign Debt Roundtable.

 

'This week in Bengaluru, we will meet in-person for the first time—and pave the way for creditors, both public and private, and debtor countries to work together, assess the existing shortcomings and best ways to tackle them,' she said.

Agricultural and Process Food Export Development Authority (APEDA) is participating in the 28th edition of Gulfood 2023 being held in UAE. In order to augment trade, India has been participating in GULFOOD which is a platform that connects food and beverage sectors around the globe, providing ample of opportunities to Indian exporters. Over the years APEDA has participated in Gulfood and brought a strong contingent of suppliers from Indian diaspora. In an area of appx 600 sq. mtr, more than 50 Indian exporters from the different categories like women entrepreneurs, Start ups, merchants and manufacturers showcasing agricultural, dairy, pulses and meat-based produce with focus on Millet and its products through APEDA pavilion, are being showcased.

 

The India Pavilion was inaugurated by Shri Pashupati Kumar Paras, Union Minister of Food Processing Industries along with Ambassador of India H. E. Sunjay Sudhir, Dr. M Angamuthu, Chairman, APEDA, Shri Sanoj Kumar Jha, Additional Secretary, Ministry of Food Processing Industries, Mr. Muktanand Agarwal, Director, Ministry of Agriculture & Farmer’s Welfare, officers of APEDA, Indian Embassy, CGI, other stakeholders from Centre & State & exporters.

 

APEDA is organizing promotions, tasting campaigns, sampling of millet products & biriyani, arranging B2B interactions between start ups, exporters with identified Super markets, awareness cum capacity building programs for Start ups, FPOs and Exporters in Millets producing States, mobilizing start-ups for export promotion of value-added products in the Ready-to-Eat (RTE) and Ready-to-Serve (RTS) category such as flour, noodles, pasta, flakes, pan cakes, ready to eat breakfast cereals mix, biscuits, cookies, snacks, sweets, ready to cook mixes like dosa, idly, khichri, daliya, etc. 

 

 In Gulfood organized from 20th – 24nd February 2023, there is participation of 5000 companies from 125 countries. In the International Year of Millets (IYOM) 2023, India is participating in GULFOOD with the theme focused on export promotion of millets and its value added products. Indian Pavilion is promoting around 100 delegations of exporters. A Millet gallery has been prepared to showcase Millets and its products by the start ups and new entrepreneurs to provide them a platform to showcase their quality products.

 

The Indian pavilion at Gulfood 2023 is one amongst the largest pavilion at the show to cater food products exports to more than 125 countries participating in the event. 

 

APEDA has signed a MoU with Government of UAE through its nodal agency Al Dhara Holding SP LLC for procurement of food and food products from India as well as to sell to buyers in UAE as a part of UAE food security strategy and DP World FZE, a subsidiary of Government of Dubai (A leading provider of worldwide smart end-to-end supply chain logistics, enabling flow of trade across the globe). The MoU signed between both the countries will promote the exports from India to UAE and strengthen the trade further.

 

GCC  is  India’s major export destination in majority of agricultural and processed food products sectors such as floriculture, fruits and vegetable seeds, fresh onions, fresh vegetables, walnuts, fresh mangoes, fresh grapes, other fresh fruits, betel leaves & nuts, processed fruits, juices & nuts, pulses, sheep/goat meat, processed meat, dairy products, natural honey, groundnuts, jaggery & confectionery, cereal preparations, milled products, alcoholic beverages, miscellaneous preparations, basmati and non basmati rice, wheat, cashew kernels etc. accounting for 42.77% share in APEDA’s agri exports to West Asia-GCC countries.  Export of APEDA’s scheduled products in the UAE market had grown from $69.52 million in 1987-88 to $1604.76 million in 2021-22.

 

India and UAE are trading partners since several decades. India is the largest producer of a range of agricultural products and has been catering to the global import requirement of agricultural products of UAE. 

 

India ranks 8th with share of 2.33% in the global agri exports. India’s total Agri Export is USD appx. 50 billion in 2021-22 with a contribution of more than 51% share by APEDA’s agricultural and processed food products export in the Indian agri export basket during 2021-22. UAE is one of our top export destinations. In India’s export of APEDA products, the major products exported during the referred period are non basmati rice, basmati rice, buffalo meat, wheat, maize, miscellaneous processed items, cereal preparations, groundnuts, processed vegetables, processed fruits, juices & nuts, fresh onions etc.

 

The two nations signed the historic Comprehensive Economic Partnership Agreement (CEPA) on 18th February 2022 which strengthened the strategic partnership & aimed at boosting the merchandise trade between the countries to $100 billion over the next five years. 

 

There is a shifting paradigm in export of agri products to UAE, the top ten potential products exported to UAE has been changing trends paving way to new additional products in the last few decades, conclusively giving ample opportunities for a range of 15-20 products to put on strong foothold in UAE market. GULFOOD 2023 is a gateway to GCC, West Asia, Europe & Africa.

The arrival of the newly harvested wheat crop has started in the mandis in states such as Gujarat, Madhya Pradesh, Uttar Pradesh and Maharashtra, according to traders. Wheat prices have been in the range of Rs2,300-2,500 per quintal against the minimum support price (MSP) of Rs2,125 per quintal for the 2023-24 marketing season.

 

'The prices in the mandis have corrected with the arrival of the new crop and the government's decision to offload wheat from its own stock,' said Mohit Upadhyay, managing partner, HMV Agro.

 

The daily arrival of wheat in the mandis has ranged between 300-500 bags and is expected to increase in the next fortnight. The total arrival of wheat in the mandis from February 1-16 was 358,897 kg, 19% higher than 302,720 kg a year ago. 'The arrivals have increased as the wheat sowing started early this year compared with last year and the increase in day temperatures resulted in early maturity of the crop,' said Rajiv Yadav, senior V-P, Origo Commodities, an agri commodity firm.

 

The ICAR-Indian Institute of Horticulture Research (IIHR) has developed a new vertical farming structure for 'protected' cultivation of crops such as cabbage and cauliflower, besides flowers like lilium and gerbera.

 

The new structure, which can be as high as 12 feet, leads to effective space utilisation in a poly-house. This can result in productivity rising by up to six times compared with the conventional farming on a per unit area basis, scientists claimed.

 

The low-cost vertical farming structures consist of vertically stacked layers of around 11 tiers and have inbuilt wick-based drip irrigation in which the crops can be grown in bags containing soil-less substrate mix comprising coco-peat, vermicompost, paddy husk and spent mushroom, said C Aswath, Principal Scientist, IIHR.

 

With multiple stacked layers allowing increased utilisation of the unit area available in the poly-house by 5-6 times, and through higher planting density, the yield and productivity can be increased six times, Aswath said.

 

Planning to patent

The cost of setting up each of these structures which is one metre in width and three metres in breadth and about 12 feet in height comes around to Rs.25,000, Aswath said. IIHR has proposed a subsidy of 50 per cent under the Mission for Integrated Development of Horticulture for the wider adoption of the new structures by farmers practising poly-house cultivation in urban and semi-urban areas, he said.

 

IIHR has set up these new vertical farming structures at the Centre of Excellence on Protected Cultivation of Horticultural Crops at its premises in Hessarghatta, Bengaluru, to demonstrate the cultivation of high-value floriculture crops like lilium and high-value vegetables such as broccoli and purple cabbage. Safeena SA, Senior Scientist, IIHR, said the institute was looking at patenting the new vertical farming structure design.

 

At the upcoming National Horticulture Fair starting Wednesday (February 22), IIHR will provide training to the farmers on the vertical farming techniques.

 

With shrinking land resources, vertical farming, which helps produce more crops from small areas throughout the year, is seen as an innovative solution to help address the growing food demand.

 

This distinctive method of farming aims at higher productivity in smaller spaces making efficient use of the available vertical space and uses soil-less farming methods.

 

Other vegetable crops such as beans, cauliflower, various leafy vegetables, fruits like strawberries and flowers such as gerbera, gypsophilia, gladiolus can be grown under the vertical farming method, Aswath said.