India’s 12 major ports have seen a 9 per cent increase in traffic handled, y-o-y, for the April – December period. Total cargo handled include 576.63 million tonnes for the period under review.

 

Cargo handling in the year ago period stood at 529 mt, data from the Indian Ports Association showed.

 

Increase in traffic came on the back of a 35 per cent rise in thermal coal handling, which stood at 98 mt as against 72 mt in the year-ago period. This was followed by an increase in coking coal handling, which increased by over 16 per cent y-o-y to 43.25 mt (against 37.2 mt).

 

The twelve major ports include Kolkata and Haldia Dock Systems (together known as Syama Prasad Mookherjee Port), Paradip, Vishakhapatnam, Kamarajar (or Ennore), Chennai, VO Chidambaranar, Cochin, New Mangalore, Mormugao, Mumbai, Jawaharlal Nehru Port Authority and Deendayal.

 

Petroleum and other crude products like LPG/LNG was the largest item handled, in terms of volume, across the 12 ports. Around 176 mt of POL (petroleum, oil and lubricants) was handled during the period under review, up 8 per cent y-o-y when 163 mt was handled.

 

Interestingly, data from the association shows that iron-ore (including pellet) handling saw an over 20 per cent decline for the nine-month-period (9MFY23), to 29.7 mt. Iron ore shipments handled during the same period last year was 37.2 mt.

 

The other item which saw a fall in cargo handling was raw fertilisers; down by 5 per cent-odd to 6.3 mt (apprx).

 

Paradip Port

Of the major ports, traffic handled by Paradip was the highest at 96.7 mt, up 16 per cent y-o-y . Pradip accounted for 17 per cent of the total traffic. Nearly, 12.6 mt was thorough-put for December only — the highest ever for the year.

 

Thermal coal handling at the port increased by 15 mt, or by 71 per cent y-o-y, to 36 mt. Coking coal handling, however, declined by 4 per cent to 10.2 mt, data from Indian Ports Association showed.

 

Syama Prasad Mookherjee (SMP Kolkata), Vishakhapatnam, Chennai, New Mangalore and Chidambarabar were among the ports that saw significant increase in coking coal handling. In fact, SMP- Kolkata reported the highest coking coal handling at 17.2 mt, up 58 per cent, y-o-y.

 

Chennai, Cochin, SMP-Kolkata and JNPA did not see any thermal or steam coal handling during the period, while others like Vishakhapatnam, Ennore, Deendayal were amongst those that saw an increase in coal cargo.

Union minister for industry and commerce Piyush Goyal has said that India and the United States (US) have decided to use the Trade Policy Forum (TPF) ministerial meetings to focus on the big picture of the trade relationship, and not get bogged down by squaring off item-by-item market access related details.

 

The big focus in the relationship now includes deepening partnerships on semiconductor manufacturing and defence production, where Goyal said that India, unlike other countries, 'did not steal technology', in what appeared to be a reference to China. He added that given the political decision in the US not to sign any free trade pacts with any country, an India-US FTA was not a part of the discussions.

 

Responding to a question from HT on whether, even as the intent and nature of discussions were positive, the TPF outcomes had been incremental and therefore disappointing, Goyal said that the two countries now envisioned the forum in a different framework.

 

'There are market access issues which don’t come into the TPF in terms of the detailing. Both (US Trade Representative) Katherine Tai and I decided that we should leave those details to the officials to work on and continuously expand,' Goyal said.

 

He added that they had decided 'to move on' from the 'one is to one, we will open table grapes for you, you open mangoes for me...level of the discussion' that was in the mini-trade deal once envisaged between the two countries or in earlier discussions.

 

'Katherine Tai and I decided that this is not the age and day to look at I give you one item, you give me one item, and we square off issues. We both agreed we should look at the big picture, what’s good for both countries, and at the ministerial level, we set the context in which the officials then find the day-to day solutions. We did not believe that at the ministerial level, we should be putting down on paper, going forward, that on mangoes, I do this, on grapes, you do this, on pork, you do this. Those are for officials to work out.'

 

Goyal said that on specific issues, progress has happened on many of these items and there was ongoing work between different agencies and departments.

 

'We focus on the big picture. Let’s respect each other’s sensitivities, and while respecting those sensitivities, let’s move forward and fast-track our on-the-ground outcomes. Let’s move out of this one is to one ratio-based outcomes.'

 

Giving examples of what he termed the big picture, Goyal cited semiconductor manufacturing and defence and contrasted India’s credentials with others.

 

'We are looking at much deeper engagement with the US on semiconductor manufacturing. Several American companies are looking at the big Indian opportunity on defence production, making it competitive, giving an opportunity to tap into the large Indian market where we are encouraging make in India products. They feel comfortable working with India because unlike other countries, we don’t steal technology.'

 

The minister said India respected the sanctity of technology, allowed companies to keep technology, didn’t demand technology transfer and pointed out that while India allowed 74% ownership in the automatic route in defence production, it even allowed 100% ownership on a case-by-case basis in an expedited manner.

 

'Our effort in both meetings — with both Tai and commerce secretary Gina Raimondo — has been on the big picture. And, therefore, I would disagree that it is more about intent and less about substantive outcomes. I think there is a greater substantive outcome this time around than the last because we have set the principles on which this engagement can go on a fast-track.'

 

Responding to a separate question on the fate of a mini trade deal — which was a subject of discussion with the earlier Trump administration — Goyal said that it was 'too mini' to merit any great effort on both sides. 'We have even forgotten most of these issues and are looking at much bigger ambitions in our trade with the US.'

 

The minister pointed out that India has recently signed a set of free trade deals but the US is not looking at any free trade deals with any country 'as a matter of their political policy'. 'So that’s not on the table. We are focusing on greater market access, ease of doing business and looking at much larger footprint for trade, investment and business and small mini trade deals have lost relevance today.'

According to a study conducted by PHDCCI, India’s exports to UAE are projected at US$50 billion by 2027 as there is an untapped potential between the two countries which is being explored by the trade and Industry to enhance the trade volumes, said Industry body PHDCCI.

 

Revealed comparative advantage (RCA) and Bilateral Revealed comparative advantage (BRCA) also indicate large unexplored trade potential between the two countries, said the analysis conducted by the Industry body.

 

The Comprehensive Economic Partnership Agreement (CEPA) was signed between India and the United Arab Emirates (UAE) on 18 February, 2022.

 

Bilateral trade between India and UAE has increased from US$60 billion in 2014 to US$69 billion in 2021.UAE share in India’s exports has registered very small increase from 5.9% in 2014 to 6.4% in 2021, said PHDCCI.

 

Further, the steady share of UAE in India’s exports and imports demonstrates the mutual importance for both countries to increase their bilateral trade and investment, Industry body PHDCCI stated.

 

India had trade surplus with UAE from 2014 to 2017 but the gap between exports and imports widened after that, resulting in a trade deficit for India from 2018 onwards till now. The trade deficit of India with UAE stands at US$18 billion in 2021, as per PHDCCI.

 

Under the India- UAE trade agreement, UAE offered duty elimination on more than 97 per cent of its products which accounts for 99 per cent of India’s exports to UAE. This will create new avenues for India and open doors for the rest of the Middle East, parts of Africa and Europe, said Saket Dalmia, president, PHDCCI in a statement.

 

India’s eight major export sectors to UAE i.e. Stone and Glass, Fuels, machinery and electrical, Textile and Clothing, Metals, Chemicals, transport and Vegetables contributed around 90% in India’s total exports to UAE, Dalmia added.

 

Majority of India’s exports to UAE are in those product categories in which India has comparative advantage. In 2014, there were five product categories in which India had Revealed Comparative Advantage (RCA), but recently, the number increased to eight product categories, he said.

 

Detailed analysis of bilateral revealed comparative advantage(BRCA) carried out at HS-6 digit level (around 3479 tariff lines) reveal that India has bilateral revealed comparative advantage in 276 tariff lines which account for 5.4% of UAE’s total imports(US$15.26 billion/US$275 billion) in 2020, said the Industry body, PHDCCI.

 

Going ahead, there is India’s large trade potential yet to be fully realized with UAE, he said.

 

In light of India’s large untapped potential with UAE, and considering its futuristic growth prospects, India’s exports to UAE are expected to touch US$50 billion by 2027 along with trade surplus, Dalmia stated.

Bangladesh's participation in the ongoing India-Myanmar-Thailand Trilateral Highway (IMTTH) project, one of India's flagship projects under its Act East Policy, is much-awaited and hoped for.

 

Even during Sheikh Hasina's recent four-day visit to India from September 5 to 8 in 2022, Bangladesh's unabated interest on the matter was visible in the ministerial-level discussions that were held.

 

This is because India's proposal to extend the IMTTH project, so as to establish connectivity with other ASEAN powers like Lao PDR, Cambodia and Vietnam would result in an approximately 3,200 km route known as the East-West Economic Corridor (EWEC).

 

And, given how ASEAN connectivity remains a priority concern for both India and Bangladesh, a possible eastwards extension of the IMTTH as a division of the EWEC — that further links itself with the Greater Mekong Subregion (GMS) — is crucial if the South Asian economies want to play a more meaningful role in the post-Covid world.

 

Initially, when a road belt connecting India, Thailand and Myanmar was under construction, India had approached the-then Khaleda Zia-government to be a part of the project. However, it was refused back then.

 

The Sheikh Hasina-government, on the other hand, expressed its interest to join the IMTTH project during a virtual summit between Prime Minister Sheikh Hasina and her counterpart Narendra Modi in 2020. The matter was again brought up in discussions held during Modi's Bangladesh visit in 2021, to commemorate 50 years of bilateral ties between the South Asian neighbors.

 

In 2018, the Economic Research Institute for ASEAN and East Asia (ERIA) was commissioned by the Indian government to conduct a study on the feasibility of the IMTTH'S extension to the EWEC.

 

According to ERIA, developing a potential southern route for extension stands more feasible than a northern route.

 

The potential northern route passes through Myanmar's Shan state, the Myanmar–Lao PDR Friendship Bridge at Xieng Kok in Laos till Pang Hok, a primary border crossing between Laos and Vietnam. Entering Vietnam through Tay Trang, the route then connects with the cities of Dien Bien Phu Phong, Hanoi and Hai Phong.

 

The development of a northern route faces many challenges in the form of unresolved security issues like restrictions on foreigners entering parts of Myanmar's Shan state, and issues of poor infrastructure as noticeable in Laos, where many of its sections would require expansion for accommodating large trucks.

 

The potential southern route passes through the Thai cities of Mae Sot and Bangkok till Aranyaprathet at the Thailand-Cambodia border. Thereafter, the route passes through important Cambodian cities like Phnom Penh till Bavet, Cambodia's international border gate with Vietnam. After entering Vietnam, the route passes through the Go Dau port and the cities of Ho Chi Minh and Vung Tau.

 

The prescribed southern route has better developed roads in Thailand since it overlaps with GMS economic corridors– something that the northern route lacks. The economic returns are also to be higher in the southern route's case since the better quality of road infrastructure would result in a lower completion cost.

 

Extension of the IMTTH ensures economic integration and greater connectivity of India's landlocked North Eastern Region (NER) with Bangladesh and the Southeast Asian nations of Cambodia, Laos and Vietnam as Bangladesh's involvement adds additional routes for the project by both, land and sea.

 

Bangladeshi products are also known to be in heavy demand in the states of Meghalaya, Mizoram, Assam and Tripura that fall under the NER. These states share a border with Bangladesh and provide a big market for its fast-growing economy– and the IMTTH project would simply catalyse this opportunity further.

 

The eastward extension will also reduce time and transportation costs to Myanmar and Thailand, simultaneously opening wide opportunities for exporters in Bangladesh and the NER to the unexplored regions of Cambodia and Laos.

 

Likewise, the corridor will ensure Cambodia, Myanmar, Laos, Thailand and Vietnam greater access to the NER and Bangladesh's vast markets, reducing their heavy reliance on Chinese markets.

 

With regard to geographic proximity, Bangladesh and India have stronger trade ties with their Middle East neighbors like the United Arab Emirates, but their trade linkages with Southeast Asian countries like Laos and Cambodia are minimal– this is also something that could be addressed.

 

The Covid-19 pandemic has taught us that one cannot be overdependent on supply chains given how supply chains, movement of people and goods got disrupted during the pandemic.

 

Preparation of alternate routes, in addition to the existing regular route for trade and connectivity, shall be a game-changer for manufacturers and traders in Bangladesh and the NER in the post-Covid scenario.

 

The eastern extension of the IMTTH to Vietnam provides for such an opportunity since it establishes new/alternate sources of supply and larger markets.

The 'One District One Product' initiative is a transformative step towards achieving the goal of Aatmanirbhar Bharat, by driving economic growth, creating employment and rural entrepreneurship opportunities. India is a home to a variety of products that are specific to each region and provide people with sources of income. These include both agricultural and non-agricultural products, such as manufacturing, which are unique to each district. From ancient, nutritional crops and their by-products to rare and exquisite crafts, renowned embroidery work, sophisticated horn and bone art, and environmentally friendly alternatives to ivory, India offers something for everyone.

 

CAPITALIZING THE RICH CULTURE OF INDIA

The goal of the ODOP scheme is to make these products more accessible, providing employment opportunities for those who have dedicated themselves to preserving them. The scheme has been integrated with the 'Districts as Export Hub (DEH)' program of the Directorate General of Foreign Trade (DGFT) and Department of Commerce, with the Department for Promotion of Industry and Internal Trade (DPIIT) as the primary stakeholder.

The aim is to turn each district into a manufacturing and export hub by identifying products with export potential within them. For this purpose, institutional mechanisms in the form of State Export Promotion Committees (SEPCs) and District Export Promotion Committees (DEPCs) have been set up in 36 states/union territories to support export promotion and address any obstacles that stand in the way of export growth in the districts.

 

EXPORTS JUMP THREE TIMES WITH ODOP

In the past few years, various indigenous crafts and products made at a district level in different states under the 'One District One Product' (ODOP) scheme have gained great popularity both domestically and internationally. According to the data released by SBI Research, exports of almost 16 states have trebled due to this initiative. These states include Andhra Pradesh, Bihar, Chhattisgarh, Gujarat, Haryana, Himachal Pradesh, Jharkhand, Karnataka, Madhya Pradesh, Maharashtra, Punjab, Rajasthan, Sikkim, Telangana, Uttar Pradesh, and West Bengal.

In the fiscal year 2021-22, Gujarat led the exports tally with $126,805 million, up from $27,159 million in FY19. Maharashtra was second in line with $73,120 million exports during FY22, compared to $22,986 million in the previous financial year.

The Uttar Pradesh government’s data revealed that the total worth of ODOP exports from the state went up from Rs 58,000 crore in FY17-18 to Rs 96,000 crore in FY21-22. It is estimated that ODOP products make up approximately 62% of Uttar Pradesh’s total exports. Through the ODOP-DEH program, export potential products and services have been identified in 733 districts across the country, including agricultural and toy clusters and Geographical Indication (GI) products. Toy manufacturing clusters have been identified in almost 12 districts in India.

The ODOP initiative has tremendous potential due to its objective of achieving a district’s true potential through economies of scale, product specialization via identification and promotion via marketing, MSME growth, and job creation. The ODOP initiative is attempting to raise awareness of its products and the advantages of buying them in domestic and international markets. This offers a chance to reinforce local products with health, environmental, or other beneficial characteristics. This will assist India in becoming a stronger economy and fulfilling the Prime Minister’s vision of becoming truly Aatmanirbhar. Open Network for Digital Commerce (ONDC) is a network based on open protocol which will enable local commerce across segments by network-enabled application. It will create new opportunities, curb digital monopolies. Hence, looking holistically, the small businesses of India have a bright future ahead such as small and medium enterprises.

The lawmakers from the US State of Washington have urged the Biden administration to help remove or reduce the tariffs on American apples imported to India as the country's fruit industry has incurred significant losses due to New Delhi's retaliatory measures. In a letter to US Trade Representative Katherine Tai and Commerce Secretary Gina Raimondo, all members of the House of Representatives from Washington State and other two senators said the tree fruit industry suffered losses due to India's retaliation to US tariffs.

 

On average, 30 per cent of the apples, cherries, and pears produced in the Pacific Northwest are exported and India was once a strong market. With retaliatory tariffs in place, Washington state apple growers have continuously lost market share in India, the lawmakers said.

 

Prior to the implementation of these tariffs, India was our number two export market, valued at USD 120 million annually, they said.

 

Last season, growers exported fruits barely worth USD 3 million.

 

As growers have watched hard-earned market share and sales evaporate, their competitors in other countries have gained more of the market share, they said.

 

The lawmakers in their letter dated January 10, urged Tai and Raimondo to raise the issue with visiting Indian Commerce and Industry Minister Piyush Goyal. The India-US Trade Policy Forum (TPF) meeting was held on January 11.

 

'The damage inflicted by the retaliatory tariffs on tree fruit growers, their employees, and communities is clear and a solution is long overdue. On behalf of the many stakeholders throughout our region, we appreciate your attention to this matter,' the letter said.

 

'Following the TPF, we request that you meet with members of the Pacific Northwest tree fruit industry to discuss the next steps to remove the retaliatory tariffs,' it said.

 

According to the lawmakers, continued export losses coincide with the ongoing cost-of-production increases that are forcing multi-generational family farms out of business.

 

The 'Red Delicious' variety accounts for nearly all the exports to India. Families operating legacy 'Red Delicious' orchards, many of whom may not have the financial capacity to modernise their orchards, are disproportionately affected by the tariffs, the lawmakers wrote.

 

This year the 'Red Delicious' crop is the lowest since 1968. Corporate, out-of-state, entities are acquiring and consolidating larger operations, while smaller farms simply go out of business, they said.

India and the United States have established a new working group to build sustainable supply chains and boost bilateral trade, the governments said in a joint statement on Thursday.

 

The working group will initially focus on trade facilitation, digitization of customs procedures, issues related to sustainable finance and the scaling up of innovative clean technologies, according to the statement issued after a Trade Policy Forum meeting in Washington D.C.

 

At a meeting co-chaired by India's trade minister, Piyush Goyal, and U.S. Trade Representative Katherine Tai, the countries also agreed to continue close monitoring of visa issues and increase dialogue on food and agricultural trade issues in 2023.

 

The United States will also consider India's interest in the restoration of beneficiary status under the U.S. generalized system of preferences program, the statement added.

 

The Trade Policy Forum, revived in 2021 after a gap for four years, will reconvene on a ministerial level before end of 2023.

 

The two countries said they mean to continue to work together on resolving outstanding trade issues.

 

'Waiting for all-or-nothing comprehensive agreements will only slow our shared goal of achieving a $500 billion trade relationship,' the president of the U.S. Chamber of Commerce's U.S.-India Business Council, Atul Keshap, said in a statement.

 

Goyal also said the two countries are looking at larger bilateral footprints for trade and investments than mini deals, with a focus on greater market access and ease of doing business.

 

U.S. companies are also looking to invest more in India, he added.

 

'U.S. companies have ambitious plans and are looking to invest large capital and bring technology to India,' Goyal said in a statement released on Thursday.

Secretary, FPI, Smt Anita Praveen chaired a roundtable interaction with international industry associations / business chambers / trade agencies on the activities related to Mega Food Event 2023 on Thursday, 12th January 2023 at Vigyan Bhawan Annexe, New Delhi. This was the fourth session in the series of roundtable interactions that are being held with key stakeholders such as major agri-food companies, resident commissioners of States and UTs, Central Ministries and Departments, and other relevant stakeholders. The roundtable witnessed participation from representatives of 13 countries.

 

During the keynote address, Secretary, FPI informed the participants that the Mega Food Event will be organized between 03rd to 05th November 2023 in New Delhi. She encouraged the participants to share their inputs and expectations from the Mega Food Event which will provide opportunities for all stakeholders from farm to fork such as processors, equipment manufacturers, technology providers, start-up innovators, etc.

The country's wheat production is likely to set a new record of more than 112 million tonnes in the 2022-23 crop year (July-June), according to official sources. Wheat production had declined to 106.84 million tonnes due to heat wave in key growing states in 2021-22 crop year, as per the agriculture ministry data.

 

In 2020-21, the country had achieved record wheat output of 109.59 million tonnes.

 

'The crop prospect of wheat crop is better due to current weather conditions and slightly higher acreage. The total production is estimated to be more than 112 million tonnes this year,' sources said.

 

Sowing of wheat, the main rabi (winter) crop, had begun from October onwards, while harvesting will start from March/ April.

 

According to the latest data, farmers have sown wheat in 332.16 lakh ha till January 6 of the current rabi season of the 2022-23 crop year (July-June), against 329.88 lakh ha during the same period last year.

 

Higher coverage was reported from Rajasthan (2.52 lakh ha), Uttar Pradesh (1.69 lakh ha), Maharashtra (1.20 lakh ha), Gujarat (0.70 lakh ha), Chhattisgarh (0.63 lakh ha), Bihar (0.44 lakh ha), West Bengal (0.10 lakh ha), Jammu & Kashmir (0.06 lakh ha) and Assam (0.03 lakh ha), according to the data.

 

India is likely to import a million tonnes of tur dal (pigeon peas) in the marketing year 2023-24 to meet the domestic demand as production in the country is expected to drop due to wilt disease, said Rohit Kumar Singh, secretary, Department of Consumer Affairs.

 

'We will be importing 10 lakh tonnes of tur dal against last year's 7.6 lakh tonnes to meet the domestic demand,' said Singh.

 

The marketing year for tur is from December to November.

 

Tur is mainly imported from east African nations and Myanmar. These countries have an export surplus of 1.1-1.2 million tonnes, so availability is not an issue, according to Singh.

 

'The disease, wilt, has been seen in certain areas in Karnataka and Maharashtra and could affect production by 10-12%,' said Suresh Agrawal, president, All India Dal Mill Association.

 

The government is also set to relax some quality norms of the Food Safety Standards Authority of India levied on imported pulses to speed up the process of quality checks at the port. 'This will help the commodity reach the market faster,' said Singh.

 

The Centre had earlier extended the import of tur and urad pulses under the 'free' category for another year, till March 31, 2024, according to a notification by the Department of Commerce.

 

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