Indian corn (maize) exports are on the rise as the coarse cereal is enjoying an advantage in freight charges in Southeast and West Asia. 

 

The export demand has resulted in domestic prices ruling higher than the minimum support price (MSP) of Rs.1,962 a quintal, traders and exporters say. 

 

'We have stiff competition from Brazil, Argentina, and the Black Sea region. But our freight to destinations in South-East Asia and West Asia is cheap. It is proving to be an advantage,' said Delhi-based exporter Rajesh Paharia Jain.

 

Rise hits parity

Though Indian corn is quoted at $310 a tonne free-on-board (f.o.b) compared with $290, the low freight charge is giving it the market share in countries such as Vietnam, Malaysia, and Oman.

 

'We are exporting to Vietnam and Malaysia at around $310 f.o.b. Domestic prices are ruling high, and we are getting deliveries for export in Mumbai at Rs.23,500 a tonne and in Chennai at Rs.24,500,' said M Madan Prakash, President, Agri Commodity Exporters Association (ACEA). 

 

'Corn prices have increased in the past month, affecting our parity. Prices have increased from Rs.18,000-20,000 a tonne to over Rs.21,000. Also, the moisture in some of the arrivals is high, at 15 to 17 per cent,' said Mukesh Singh, Director of Mumbai-based MuBala Agro. 

 

Emerging major player

According to data from Agmarknet, a unit of the Agriculture Ministry, the weighted average price of corn currently is Rs.2,114 per quintal, against Rs.1,775 a year ago. 

 

'Stockists are currently buying, and arrivals are good in the domestic market,' said ACEA’s Prakash.

 

'At least 3.5 lakh tonnes have headed towards Vietnam this fiscal. We are a major player in the region,' said Jain.

 

During the current fiscal, 19.53 lakh tonnes (lt) valued at $653.36 million have been exported during the April-November period of the current fiscal. In 2021–22, 36.90 lt were exported at a value of $1.02 billion. 

 

Bangladesh is the largest importer of Indian corn during the period, buying 11.5 lt, while Nepal purchased 2.7 lt and Vietnam 2.3 lt during the period.

 

Lanka begins enquiries

'The problem now is that exporters are fulfilling deals on hand, but they don’t have much stock. Corn suppliers in West Bengal are using it for their own production,' said Singh.

 

'Of late, we are getting good enquiries from Sri Lanka,' Jain said. 

 

'Bangladesh, Vietnam, and Malaysia continue to buy from India,' said Singh. 

 

Indian corn prices have gained in tandem with global prices, ruling near the highs witnessed in November 2022. Currently, corn futures on the Chicago Board of Trade (CBOT) are quoting at $6.8 a bushel (Rs.22,100 a tonne). 

 

Global corn prices have gained on supply chain disruption, rising input costs, and higher demand. The ongoing Ukraine war, late plantings in the US, and dry weather in South America are causing concern in the market, particularly since Kyiv contributes 15 per cent to the export market. 

 

According to the Food and Agriculture Organisation, global corn production is estimated to be 4.7 per cent lower in 2022–23 at 1,156 million tonnes (mt) against 1,211.8 mt in 2021–22. Supply is projected 2.5 per cent lower at 1,461.1 mt and ending stocks will likely be over 7 per cent lower at 283.5 mt. 

 

India has been aided by a record kharif maize production of 23.10 mt compared with 22.63 mt last kharif season.

The bilateral trade between India and Pakistan has increased to USD 1.35 billion during April-December 2022 as against USD 516.36 million in the whole 2021-22, Parliament was informed on Wednesday. Similarly, the country's trade with China has aggregated at about USD 87 billion during the nine-month period of this fiscal, according to the data provided by Minister of State for Commerce and Industry Anupriya Patel in a written reply to the Lok Sabha.

 

In 2019, Pakistan suspended bilateral trade with India after New Delhi revoked the special status of Jammu and Kashmir.

 

The trade with Pakistan stood at USD 329.26 million in 2020-21 and USD 830.58 million in 2019-20, the data showed.

 

'The government continues to engage pro-actively with SAARC countries to strengthen trade and economic relations. Issues impacting bilateral trade raised by these countries are taken up for an early resolution,' she said.

 

Replying to a separate question on foreign trade data, the minister said that the data are released in three stages -- press release (15th day of the following month); provisional data for 168 principal commodities (25th day of the following month) and the final data on the 45th day of the following month.

 

She said that the efforts at ensuring data availability with minimal discrepancies is a continuous process.

 

'The Department of Commerce has taken note of media reports on data discrepancies,' she added.

India, which has emerged as the highest milk producer in the world, has seen a 51 per cent increase in milk production during the last eight years.

 

Replying to a question in Lok Sabha on Tuesday, Parshottam Rupala, Union Minister for Fisheries, Animal Husbandry and Dairying, said the milk production in the country increased from 146.31 million tonnes (mt) in 2014-15 to 221.06 mt in 2021-22, recording a growth of 51.06 per cent.

 

However, the overall production in the world went up by 14.72 per cent during that period. World milk production increased to 918.16 mt in 2021-22 from 800.33 mt in 2014-15.

 

Referring to the production data of Food and Agriculture Organization Corporate Statistical Database (FAOSTAT), he said India is the highest milk producer. India’s share in the total milk production in the world was at 24.08 per cent in 2021-22. India’s share in global milk production was at 18.28 per cent in 2014-15.

 

Price up

Along with milk production, the price of the commodity has also gone up by more than 10 per cent for a common consumer in the country in the last three years.

 

The average price of the toned milk went up from Rs.42.29 a litre in 2020-21 to Rs.48.49 a litre in 2022-23, recording a growth of 14.12 per cent. The average price of double toned milk increased from Rs.38.62 a litre in 2020-21 to Rs.43.91 a litre, recording a growth of 13.70 per cent. The average price of full cream milk increased from Rs.52.83 a litre in 2020-21 to Rs.58.16 a litre, recording a growth of 10.09 per cent.

 

Rupala said the Department of Animal Husbandry and Dairying does not regulate the procurement and sale prices of milk in the country. Prices are decided by the cooperative and private dairies based on their cost of production and in general, by market forces. He said the department reviews and monitors the milk situation in the country on a regular basis.

The Jammu and Kashmir government has initiated a vital programme to support its farmers and promote sustainable agriculture in the Union Territory.

 

With a growing concern for health and an increasing demand for organic food, the government is investing in a project that will boost organic food production and increase economic returns for farmers in the UT. This is a part of the government's larger efforts to create a safer, cleaner and more sustainable environment for agriculture and food production in the region.

 

The government has kept a budget of Rs 84 crore to support the program over the next five years. This initiative is part of a larger effort to promote sustainable agriculture, commercial agriculture and healthy food production. The project envisages creation of over 12600 jobs and 300 enterprises in the organic agri-sector.

 

The program included a range of interventions to support organic farming such as expanding organic cultivation in a cluster approach, producing and recycling bio-inputs, facilitating certification and marketing and providing training and capacity building for farmers. The project aims to create six to seven organic clusters per district, covering a total of 2000 hectare of land. Additionally, it aims to convert another 2000 hectare into organic production, including niche crops and default organic areas. The program will also provide training to 10,000 farmer families in organic farming and establish 200 commercial and 3000 low-cost vermicompost units and 100 Integrated Organic Farming System Units. Besides, two Bio-Input Production Units will also be set up to supply organic inputs for the production clusters.

 

The project will have a number of positive outcomes which will further fuel growth in organic production within J&K, including development of trained manpower and a package of practices suited to the region, dedicated bio-input production facilities, certification and branding facilities and an organic value/market chain.', said Atal Dulloo, Additional Chief Secretary (ACS), Agriculture Production Department.

 

'J&K has a number of remote areas where very little chemical use is being undertaken in Agriculture. Moreover, the farmers in these areas are usually marginal and economically weak. By promoting organic cultivation, the livelihood of these farmers will be secured and their returns significantly improved.', he added.

 

'Alternate Agriculture System for Sustainability' is one among the 29 projects, which were approved by the Jammu and Kashmir administration after being recommended by the UT Level Apex Committee for holistic development of Agriculture and allied sectors in UT of J&K. The prestigious committee is being headed by Dr Mangala Rai, Former DG ICAR and has other luminaries in the field of Agriculture, Planning, Statistics and Administration like Ashok Dalwai, CEO NRAA, Dr. P. K Joshi, Secretary, NAAS, Dr. Prabhat Kumar, Horticulture Commissioner MOA & FW, Dr. H. S Gupta, Former Director, IARI, Atal Dulloo, ACS, Agriculture Production Department apart from the Vice Chancellors of the twin Agriculture Universities of the UT.

 

One of the main goals of the project is to expand the area under certified organic cultivation to 4000 hectares, involving 10,000 farmer families. The program aims to promote organic farming and provide farmers with knowledge about organic input production and resource recycling, as well as help them obtain certification for their produce, fetching a premium price in the process. The program will also help build the capacity of scientists, extension workers, and farmers.

 

The program will garner support from a number of stakeholders including participatory farmers, certification organizations such as NCOF, APEDA, NPOP and PKVY, organic entrepreneurs for bio-input production and SHG/FPOs/CIGs for effective marketing.

 

In a nutshell, the project on Alternate Agriculture System launched by the J&K government is a major step forward in promoting sustainable agriculture and supporting the economic well-being of farmers in the region. By promoting organic farming and creating a value chain for organic produce, the program will not only help create a clean and safe production ecosystem, but also make a significant contribution to the state's GDP. This project is expected to bring about a major transformation in the agriculture sector in J&K, providing farmers with a sustainable source of livelihood for years to come

Australia is India’s 10th largest trading partner with a total trade of $18,902.62 million, per DGCIS data of April-November.

 

Similarly, India is Australia’s seventh largest trading partner and the most significant part is that both economies are highly complementary and would benefit greatly as the ECTA opens new opportunities for trade diversification for businesses.

 

The Australia-India Economic Cooperation and Trade Agreement (ECTA) is a stepping stone and has opened up new markets for exporters and service suppliers in many sectors.

 

ECTA will boost India’s trade with the support of developed nations by harnessing optimal benefits through technical upgradation of Indian industry and strengthening bilateral cooperation.

 

Under this agreement, India is being provided 100 per cent tariff elimination by an importing country in two phases — zero duty immediately on 98.3 per cent of tariff lines amounting to 96.4 per cent of value of our exports and phasing out to zero duty on the remaining 113 tariff lines constituting 1.7 per cent of tariff lines and amounting to 3.6 per cent of India’s exports (in value terms) in five years, which will benefit the remaining products.

 

For Australian products, India is offering concessions mostly on raw materials and intermediates either in the form of tariff elimination, tariff reduction (TR) with or without a tariff-rate quota (TRQ). Only a few agricultural products such as oranges, mandarins, almonds, pears and cotton among others have been allowed with limited quotas.

 

India has provided zero duty access immediately on 40.3 per cent of its tariff lines and the remaining 30 per cent in phased manner over a period of 3, 5, 7 and 10 years. This also includes 125 tariff lines where there will be duty reduction and not elimination.

 

Sensitive products

India has excluded many sensitive products without offering any concession. These include milk and other dairy products, chickpea, walnuts, pistachio nuts, wheat, rice, bajra, apple, sunflowers seed oil, sugar, oil cake, gold, silver, platinum, jewellery, iron ore and most medical devices. A Mutual Recognition Agreement on organic equivalence will be signed between the countries within 12 months of agreement for trade of organic products.

 

In the ECTA, reduction of 150 per cent tariff over nine years for wine bottles over import prices of$5 and $15 by 25 per cent and 75 per cent based on Indian WPI for wine will be to Australia’s advantage, the world’s sixth-largest producer and the fourth-largest exporter of wines.

 

In the processed food sector also there is elimination of tariffs up to 50 per cent for a wide range of food products, including infant formula, certain chocolates, breakfast cereals, pasta, olive oil, protein concentrates, prepared nuts, coffees and teas. There is a 30 per cent elimination of tariff in sheep meat for Australia and currently India imports sheep meat from New Zealand.

 

The pact does not allow such goods through stringent rules of origin that reflect the requirement for substantial processing. Based on India’s insistence, a number of agricultural goods have the wholly obtained criteria. Moreover, wherever other rules have been used, they largely include both change in tariff classification at the level of Subheading and a minimum of 35 per cent using Build-up Formula (or 45 per cent using Build-down Formula) value addition taking the Free on Board (FOB) value of exports as the base.

 

India exports basmati rice, spices, miscellaneous processed items, processed fruits and juices, cereal preparations, coffee, tea, marine products, guargum, sesame seeds, non-basmati rice, etc. Overall exports to Australia grew 104.83 per cent in 2021, and agriculture exports were up 14.43 per cent in dollar terms during April-November 2023. India-Australia ECTA will spur trade between the countries.

India’s basmati rice exports surged 17 per cent in volume during the first three quarters of the current fiscal, while exporters are earning at least 20 per cent more on average in overseas markets as Iran, Saudi Arabia, and the UAE together bought half of India’s total shipments of the aromatic rice.

 

According to the latest data from the Agricultural and Processed Food Products Export Development Authority (APEDA), the shipments of basmati rice increased to 3.2 million tonnes (mt) in April–December of the current fiscal from 2.74 mt in the year-ago period. However, in terms of value, the surge was 40 per cent to $3.34 billion from $2.38 billion. Due to the depreciating rupee, the growth is even higher – 50.5 per cent - in Indian currency, at Rs.26,591 crore against Rs.17,664 crore. In fact, export realisation in basmati rice increased to $1,044 per tonne this fiscal from $868 per tonne a year ago.

 

Win-win for all

Prices did not increase from the average received ($1,057) in April-September, contrary to what was expected, an official said. Though traders and exporters paid record-high prices for basmati paddy this year anticipating a huge jump, it is a win-win for all stakeholders—farmers, exporters, and consumers—the official said.

 

Recalling the 2013-14 price spiral in basmati, an industry official said exports may not rise that high over the next two months as contracts are happening at an average of $1,100-1,200/tonne, though some are getting premiums and selling at $1,350 for limited quantities.

 

In 2013–14, India exported 3.76 mt of basmati worth $4.87 billion, a record high in value terms, realising an average of $1,295 per tonne. 'That was an exceptional year as Iran had bought nearly 1.5 mt of basmati from India whereas the traditional top buyer Saudi Arabia imported around 0.8 mt,' said an industry veteran who has been tracking basmati prices for the last two decades.

 

'The problems in Pakistan is redefining the basmati market in addition to India’s demand and supply. We are in the twilight zone,' said foreign trade policy expert S Chandrasekaran, who is also the author of a book on Basmati GI.

 

Normally, prices drop on higher supplies, but in the case of basmati, paddy prices witnessed an increase in October as high as 19 per cent at Rs.3,322/quintal in Haryana and then topped Rs.4,000/quintal.

Finland's Trade Minister Ville Skinnari, who is in India this week, termed India a 'trusted partner' even as he emphasised strengthening economic ties with New Delhi. Speaking to WION, the visiting minister said, 'for Finland, India is a trusted partner. For our companies, India is a trusted partner, for our people. We really see our bilateral relations in a very positive way', adding, 'the most important thing is we build up trust in the long term, then we can see development, investment, new jobs and growth, but the most thing is trust'.

 

The minister expressed that Finland, as a leading technology country, has a lot to offer and both countries can build a mutually beneficial relationship.

 

He explained, 'India is a very important partner for Finland and although we had covid pandemic, the figures, our companies are more and more keen to do things. We have opened flight connections between Finland and Mumbai. Finland is very much present in India, and would like to work with your ministers'. 

 

During his visit, Skinnari will open Finland's Consulate in Mumbai, which he considers a step forward in promoting regional-level collaborations. The minister acknowledged the huge potential that India holds and was confident that the bilateral relations between the two countries will continue to grow.

 

While in India, Skinnari will hold talks with the Indian ministers of commerce, telecom, and railways while he already spoke to the aviation minister. Skinnari also attended Finland's Smart Infrastructure Seminar in Mumbai, where he highlighted Finland's efforts towards carbon neutrality and its smart city initiatives.

 

He also emphasized that Finland is not dependent on Russian energy, and the country has invested in renewables and nuclear energy for a long time. Expressing concerns over the ongoing Russia-Ukraine conflict, the minister said, 'Finland has a strong military, a rich history, and trusted partners, and the Minister believes that the country has a bright future ahead.'

 

On his country's NATO membership, he said, 'Process is there, the process is pending, Finland is a country with strong resilience, we believe we can find a solution, together with Sweden, and we hope that it very soon.'

Under the ODOP- Districts as Export Hubs initiative, products with export potential have been identified from all 765 districts of the country, the Minister of State for Commerce and Industry, Shri Som Parkash said in reply to a parliamentary question today. One District One Product - Districts as Export Hubs Initiative (ODOP - DEH) is not a scheme but rather an initiative aimed at fostering balanced regional development across all districts of the country. The idea is to select, brand, and promote one product from each district (One District – One Product) of the country for enabling holistic socioeconomic growth across all regions.? ODOP has been merged with ‘Districts as Export Hubs Initiative’ being run by the Department of Commerce (DoC) with Department for Promotion of Industry and Internal Trade (DPIIT) as a major stakeholder.

 

Under the ODOP-‘Districts as Export Hubs initiative, products have been identified from all 36 districts from the State of Maharashtra.

 

ODOP-Districts as Export Hubs initiative is working with manufacturers/producers across districts along verticals like design, production, manufacturing, packaging, and market creation to boost sales both in the domestic as well as international market.

 

ODOP has been merged with ‘Districts as Export Hubs Initiative’ (DEH) being run by the Department of Commerce (DoC) with Department for Promotion of Industry and Internal Trade (DPIIT) as a major stakeholder. DEH Initiative highlights the need to channelize the potential and diverse identity in each district of the country to make them export hubs. DoC through Directorate General of Foreign Trade (DGFT) has been working with the States/UTs and the districts directly to create institutional mechanisms to facilitate exports of identified products/services from the districts. Under this initiative, products and services with export potential have been identified in 734 districts of the country in consultation with all the stakeholders including the States/UTs.

 

Districts Export Action Plans have been prepared for identified products and services for overseas markets, which includes specific actions required to support local exporters / manufacturers in producing/manufacturing identified products in adequate quantity and with the requisite quality, for reaching potential buyers outside India. The aim is to benefit both producers and manufacturers by addressing challenges for exports of such identified products/services, identifying infrastructural bottlenecks, supply chain gaps, improving market accessibility and handholding for increasing exports.

 

Through DEH initiative, Government of India is significantly increasing the manufacturing and exports from urban areas while focusing on generating interest and economic activity in the rural hinterland to push new businesses to export.

 

As ODOP-Districts as Export Hubs is not a scheme, there is no financial assistance provided.

 

Engagement with Indian Embassies: Facilitated the procurement of ODOP products by multiple Indian Embassies for gifting and placement including the Indian Embassy in Croatia, Nigeria, Argentina, etc.

Export Training Workshop: The ODOP-DEH Initiative in collaboration with the Department of Post organized the first Export Training Workshop on 11th January 2023. 160+ exports from 5 States (Kerala, Tamil Nadu, West Bengal, J&K, and Meghalaya) participated. Training workshop was conducted for using the Dak Ghar Niryat Kendra portal. Training included basic requirements for exports along with major market opportunities.

Lakadong Turmeric, West Jaintia Hills, Meghalaya - Facilitated a consignment of 30 tonnes of Lakadong Turmeric from Shillong, Meghalaya in February 2022.

Indo-Japan Mango Festival, Tokyo, Japan -As a result of sustained efforts by the Embassy of India, Tokyo, Japan, and?the Agricultural & Processed Food Products Export Development Authority?(APEDA) - trade promotion for Indian mangoes in Japan has been undertaken under two editions of 'Mango Festival of India in Tokyo, Japan'. A key achievement of the same is the launch of aromatic, delicious, and nutritious Indian Mangoes in 127 convenience stores of Lawson (29th March 2022) and in the wholesale markets of Nishikasai and Akita Prefecture (28th March 2022).

Walnuts, Budgam, Jammu & Kashmir (26th September 2021) – Initiative in partnership with JKTPO facilitated import substitution of over 2000 KGs of walnuts from Budgam, Kashmir to Bangalore, Karnataka on 26th September 2021.

Sui Dhaaga: India-Russia Buyer Seller Meet for Textile Products (22nd September 2021) - Initiative in partnership with the Embassy of India, Moscow held a buyer-seller meet on textile products focussing on rayon and polyester.

Multiple ODOP products were displayed at the World Economic Forum held from January 2023 at Davos in Switzerland.

ODOP also showcased and supported the celebration of the International Day of Yoga (IDY) at the at Times Square in New York on June 21, 2022 in collaboration with the Consulate General of India, New York.

There has been over 100 per cent growth in the import of arecanut, both in terms of quantity and value, during the current financial year, the Centre told the Lok Sabha on Wednesday.

 

Data provided to the Member of Parliament from Dakshina Kannada, Nalin Kumar Kateel, by the Union Minister of State for Commerce and Industry, Anupriya Patel, showed that India imported 6,1452.21 tonnes of arecanut until November, compared to 25,978.98 tonnes during the entire financial year of 2021–22. That means arecanut imports went up by 136.35 per cent in the first eight months of 2022–2023.

 

The value of the imported arecanut went up from $90.18 million in 2021–22 to $217.8 million in the first eight months of 2022–23.

 

Myanmar major shipper

Myanmar, Sri Lanka, and Indonesia were the major exporters of arecanut during the period. In fact, there was a more than 273 per cent increase in the import of arecanut from Myanmar in the first eight months of 2022–23 compared with the whole of 2021–22. Myanmar exported 28,589.22 tonnes of arecanut to India from April to November of 2022–23, compared with 7,645.77 tonnes in 2021–22, recording a growth of 273.92 per cent.

 

India imported arecanut valued at $99.59 million from Myanmar in the first eight months of 2022–23, compared with $27.12 million in 2021–22.

 

'Arecanut is imported from some countries, including Singapore and the UAE. However, there has been no import of arecanut from Bhutan in the last four years, including the current financial year,' the minister said.

 

Floor price for imports

On the measures being taken by the government to protect the interests of arecanut growers in the country, the Minister said the basic customs duty on the import of arecanut is already at a fixed rate of 100 per cent.

 

The import of arecanut is prohibited if the CIF (cost, insurance, and freight) value is below ?251 per kg. 'Precisely, the government has imposed the condition of a minimum import price of ?251 per kg on arecanut to restrict the unabated import and to prevent entry of inferior quality arecanut into the domestic market and destabilization of the domestic prices,' she said.

 

The Food Safety and Standards Authority of India (FSSAI) and Bureau of Indian Standards (BIS) have developed the quality standards to restrict the import of low-quality arecanut, the minister said.

External affairs minister S Jaishankar and his UK counterpart James Cleverly reviewed bilateral relations and India’s G20 presidency during a phone conversation on Tuesday.

 

leverly called Jaishankar ahead of his expected visit to India to attend a meeting of G20 foreign ministers during March 1-2.

 

'Received a call from UK Foreign Secretary @JamesCleverly. Reviewed our bilateral relationship and discussed the agenda of India’s G20 Presidency,' Jaishankar said in a tweet.

 

This was the first contact between Jaishankar and Cleverly since a two-part BBC documentary on the 2002 sectarian violence in Gujarat triggered a controversy in India.

 

The external affairs ministry had described the documentary as a 'propaganda piece' designed to push a particular 'discredited narrative'.

 

There was no official readout on the phone conversation and it was not immediately clear whether the proposed free trade agreement (FTA) between the two countries figured in the discussions. The two sides missed the target of concluding the trade deal by Diwali last year because of differences on key matters such as tariffs on automobiles and alcohol and mobility of professionals and students.

 

The two sides are currently focused on implementing a 10-year roadmap for bolstering ties in defence, security, trade and investment and people-to-people contacts.

 

The Roadmap 2030 was adopted during a virtual summit between Prime Minister Narendra Modi and his then British counterpart Boris Johnson in May 2021.

 

At the time, the two sides also upgraded the bilateral relationship to a comprehensive strategic partnership.