The Centre has procured 68 per cent, as of December 31, of the targeted 521 lakh tonnes (lt) of rice to be procured through the Food Corporation of India (FCI) and other government agencies during October-March this crop year to June. The Centre may have to procure additional quantities in Chhattisgarh, Madhya Pradesh and Odisha to offset an expected shortfall in Uttar Pradesh, Telangana, Tamil Nadu and Bihar.

 

Amid depleting stock of rice in Central Pool and drought in some States, achieving the target is important for the Government to continue its grains distribution for various welfare programmes and under the National Food Security Act. The development is important in view of fears raised over foodgrain stocks in the country. Rice stock in the Central Pool was 115.42 lt as of December 1, 2022 against 213.03 lt year-ago.

 

Up in Haryana, down in Punjab

Rice procurement has reached 355.9 lt until December 31 in the ongoing marketing season that began on October 1. This is is 11 per cent higher than 320.7 lt during the year-ago period, the latest official data show. As many as 63.9 lakh farmers have got the benefit of selling at minimum support price (MSP). Procurement in Punjab and Haryana have been completed with 121.9 lt and 39.5 lt, respectively. While the purchase in Punjab is lower by 3.3 lt (down by 2.6 per cent), it is 3 lt more (up by 8.2 per cent) in Haryana.

 

Procurement in Tamil Nadu was nil during December against 1.2 lt a year ago and 82 per cent lower in November whereas it was over four times higher in October from the year-ago period. The target in Tamil Nadu is 19.9 lt from the kharif-grown rice and it is 22 per cent more at 5.8 lt until December 31.

 

'In the current season, paddy faced an unprecedented moisture problem in Tamil Nadu. It impacted public procurement in the last two months. Also because the demand for paddy was higher from Karnataka and Andhra Pradesh private traders, farmers preferred to sell them in view of higher price and less quality problems,' said trade policy expert S Chandrasekaran. The delta districts had excessive and continuous rainfall, he added.

 

UP scenario

Mandi prices of paddy in Tamil Nadu have increased to Rs.2,028/quintal currently from an average of Rs.1,909 in October whereas the minimum support price (MSP) is Rs.2,060/quintal for Grade A variety. The bulk of government purchase (over 85 per cent) are Grade A variety of paddy.

 

In Uttar Pradesh, 27.6 lt have been procured against 28.3 lt a year ago, down by 2.5 per cent. However, the absolute fall has widened to 30,000 tonnes in December from about 11,000 tonnes in October. Traders said procurement in the western region will drop further while eastern parts may match last year’s level. The target in UP has been fixed at 40 lt of rice and procurement will continue until January 31 in the western region and up to February 28 in the eastern parts.

 

In Telangana, the procurement has lagged behind by 7.2 per cent at 37.4 lt until December 31 against 40.3 lt a year ago and nearly 75 per cent of the kharif target has been purchased. Officials said procurement in Telangana has slowed down and it registered a 28 per cent decline in December, whereas there was a 49 per cent jump in November. As procurement will end this month, it is unlikely to see any major improvement, officials said adding that a 2-3 lt shortfall against the target of 50 lt is likely.

 

Rise in other purchases

Bihar is another State where procurement, though up so far, may not able to achieve target of 30 lt this year due to drought. The current procurement, started in November and to continue until March, is at par with 8.5 lt of year-ago level.

 

On the other hand, Chhattisgarh, Odisha and Madhya Pradesh reported 3 per cent, 62 per cent and 65 per cent jump in procurement during December. Chhattisgarh has reported a 48 per cent increase this season at 52.6 lt so far, mainly due to the purchase being advanced by a month. A relaxation by the Centre to allow purchase beyond the 61 lt target may help the State to contribute 70-75 lt to Central Pool, sources said.

Public-private partnership in port infrastructure has been an important source of investment in the sector and the Ministry of Ports, Shipping and Waterways (MoPSW) has a pipeline of 44 projects for total investment of Rs 22,900 crore till 2024-25, Union Minister Sarbananda Sonowal said on Tuesday.

 

Moreover, the government is working on the guidelines for dealing with stressed public-private partnership (PPP) projects at major ports and has also come up with policies to support the shipbuilding industry in India, Sonowal said.

 

'The Ministry of Port, Shipping and Waterways is working on two fronts to encourage private sector participation... On the project front the ministry has a pipeline of 44 projects for a total investment of Rs 22,900 crore till 2024-25,' he told PTI.

 

On the policy front, the ministry is working on the Guidelines for dealing with stressed PPP projects at major ports, Sonowal said.

 

The Ports, Shipping and Waterways minister further said that under the National Monetization Pipeline (NMP), MoPSW has accorded approval to 22 projects worth Rs 12,222 crore. Out of the 22 projects, seven projects worth Rs 5,278 crore have already been awarded on PPP mode, rest projects are in various stages of bidding, he added.

 

According to him, the ministry is also working on the Captive Policy and Migration Policy (to new MCA and Tariff regime) to improve the ease of doing business and provide a conducive environment for private sector investments in the port sector.

 

Sonowal said under the PM Gati Shakti National Master Plan, MoPSW has identified 101 projects worth Rs 56,831 crore for implementation by 2024. 'Out of these, 13 projects worth Rs 4,423 crore have been completed,' he said, adding that 9 projects worth Rs 716 crore are expected to be completed by March 2023.

 

The Ports, Shipping and Waterways ministry has identified 9 High Impact Projects (HIP) and these have been uploaded in the Project Monitoring Group (PMG) portal and are being monitored at the Cabinet Secretariat level. Three HIP projects are already completed, he added.

 

Sonowal further said, apart from completing port modernisation and port connectivity projects, the ministry is expediting various projects under the Sagarmala programme related to RoRo/Ropax and passenger jetty facilities, and fishing harbor projects to improve the connectivity and livelihood of people living in coastal areas.

 

He said National Maritime Heritage Complex (NMHC) at Lothal is being developed as one of its kind projects to display India's rich and diverse maritime heritage and the project is currently under implementation and all efforts are being undertaken to complete the first phase of this project by the end of 2023.

 

Sonowal said 191 port connectivity projects have been identified after coordination with the Ministry of Road Transport and Highways (MoRTH) and railways ministries under Sagarmala which are in various stages of implementation and development.

 

Replying to a question on demand for restoration of subsidy for moving goods through Inland waterways in the NorthEast region, Sonowal said the earlier scheme of subsidy for moving goods through Inland waterways in the NorthEast region, was launched by Ministry of Commerce and Industry (MoCI) which was closed on March 31, 2022.

 

'However, in order to promote this mode of transport and to meet first mile, last mile and multiple handling of cargo issues while transporting through IWT mode, MoPSW will take up the matter for restoration of the scheme with MoCI for promoting the movement of goods through Inland waterways in the NorthEast region,' he said.

Under the leadership of Chief Minister Shivraj Singh Chouhan, the Madhya Pradesh government took unprecedented decisions in the year 2022 in the interest of the farmers of Madhya Pradesh. These were in line with Prime Minister Narendra Modi’s dream of a Atma-nirbhar Bharat.

 

These decisions provided more than double the profit to farmers. We can say that the year 2022 fulfilled the saying 'Na Bhuto Na Bhavishyati' for the farmers. The state government received ‘Krishi Karman Award’ for the 7th consecutive time, along with ‘Best Performing State’ for maximum utilization of agriculture infrastructure fund, ‘Best Emerging State’ in Millet Mission Scheme, and ‘Excellence Award’ in Pradhan Mantri Fasal Bima Yojana.

 

An important decision was taken to benefit the farmers of forest villages in the state through the Pradhan Mantri Fasal Bima Yojana. The government got the forest villages included in the revenue villages. With this, the farmers started getting the benefits of the crop insurance scheme. To enable maximum number of farmers to take advantage of the crop insurance scheme and to insure their various crops, the government has made the criterion of notified crop area to 50 hectares instead of 100 hectares. Lakhs of farmers of the state are being provided annual assistance of Rs. 10 thousand by combining Rs. 4 thousand of Mukhyamantri Kisan Kalyan Yojna with Pradhan Mantri Kisan Samman Nidhi.

 

It was decided to purchase summer moong from the farmers in the state at the support price, increasing the income of the farmers. The crops like gram, lentils, and mustard were procured along with the procurement of wheat. Due to this, the farmers got an additional benefit of about 10 thousand crore rupees. The government procured Tivda mixed gram on support price in 8 districts. The state government’s decision of ‘As much procurement as production’ increased the procurement capacity of gram (chana) and farmers got the benefit of an additional Rs. 750 crore. This year, the maximum daily procurement limit of 25 quintals for farmers in the Samitis was abolished.

 

A crop diversification scheme was implemented in the interest of farmers to encourage the production of profitable crops in place of traditional crops. The government is also committed to taking forward natural farming in the state in mission mode. Every farmer is being encouraged to do natural farming on some part of his land. The government has decided that natural farming will be done in more than 4 lakh 45 thousand hectare area on the banks of river Narmada. 60 thousand farmers have registered for natural farming in one lakh 86 thousand-hectare area. The state government has also decided that to encourage the farmers to do natural farming, a grant of Rs. 900 per month will be given for the rearing of indigenous cows.

 

Giving priority to the quality control of agricultural inputs in the interest of the farmers, the government also took strict action this year against the sellers of non-standard seeds, fertilizers, and pesticides. This year, the action was taken to suspend and cancel the licenses of 136 seed sellers, 120 fertilizer sellers, and 14 pesticide sellers. FIR was registered against 39 sellers of seeds, fertilizers, and pesticides.

 

With the special efforts of the state government, the regional office of APEDA was approved and made operational in the state. This office is located at Mandi Board Bhopal (Kisan Bhawan). This is facilitating the farmers of Madhya Pradesh to export their agricultural products. Along with this, they are also getting the maximum benefit from their produce. With the help of APEDA, Chinnor rice of Balaghat got success in getting a GI tag.

President Ferdinand Marcos Jr. on Tuesday issued an executive order (EO) extending the temporary modification of import duty rates on various agricultural products.

 

Through EO 10, Marcos extends until Dec. 31, 2023 the tariff rates for pork (fresh, chilled, or frozen) at 15% (in-quota) and 25% (out-quota); corn at 5% (in-quota) and 15% (out-quota); and rice at 35% (in-quota and out-quota). 

 

Meanwhile, coal imports will continue to be duty-free, but will be subject to a semestral review after Dec. 31 this year.

 

According to the EO, there is a need to extend the effectivity of the reduced tariff rates on pork products, corn, rice, and coal to maintain affordable prices and guarantee a steady supply of these commodities.

 

'The current global economic situation brought about by the COVID-19 pandemic, as well as other factors affecting the country’s traditional sources of rice, corn, coal, and fresh, chilled, or frozen meat of swine, cause uncertainty in the steady supply of said commodities,' the EO read.

 

The mandate also cited supply constraints and a rise in global commodity prices due to high inflation.

 

The National Economic and Development Authority (NEDA) earlier endorsed the extension of EO 171, which former President Rodrigo Duterte signed with the intention of stabilizing the impact of inflationary pressures caused by the Ukraine-Russia crisis, boost supply sources, and lower major commodity prices.

Indian sugar exporters have almost exhausted the 6 million tonnes (mt) export quota allocated by the Centre for the current sugar season (October 2022-September 2023), striking to sell nearly 5.5 mt by December 31. 

 

'Deals to export 5.3 mt to 5.5 mt have been signed for sugar. Only a small quantity is left now for shipments,' said Rahil Shaikh, Managing Director, MEIR Commodities India Pvt Ltd. 

 

'The 6 mt export quota has almost been sold. The Centre may have to come up with a second tranche of allocation to allow additional volume,' said Praful Vithalani, Chairman, All India Sugar Traders Association (AISTA). 

 

Surplus production

In its weekly sugar report, UK-Based Marex Group said only 0.7 mt remained to be sold out of the 6 mt export quota. 'Although India’s exports will be down, the net result will be to produce a 3-5 mt surplus in 2023,' it said. 

 

'The going is good on sugar exports. About 1.5 mt have been physically shipped out. The movement was affected after some deals were renegotiated since some sellers defaulted,' said an industry source, not wishing to be identified.

 

'Almost all of the deals signed by December 31 will be exported by March 31,' said Shaikh. 

 

While white sugar has been contracted at over $530 a tonne, raw sugar has been sold at $510 with a 200-point premium for consignments with 96 per cent polarisation. 

 

Key buyers

London white sugar futures are currently quoted at $547.30 a tonne for delivery in March, while raw sugar futures on InterContinental Exchange, New York, are ruling at 18.59 cents a pound (?34,250/tonne) for March.

 

MEIR Commodities’ Shaikh said Bangladesh, Iran and Indonesia have emerged as the biggest buyers of Indian sugar this season. 'Some consignments are heading to Dubai too,' he said. 

 

Marex said parity for Indian sugar exporters was 'sky high'. Domestic sugar prices are currently ruling at ?3,200-3,250 a quintal, 

 

Trade sources said reports of Indonesia wanting to import 3.5 mt of raw sugar was keeping the market interested. 'We have nothing more to give after exhausting the export quota,' said AISTA’s Vithalani. 

 

Export cap

Trade sources said the Centre may review the sugar production scenario after January before deciding on allowing further exports. According to the Indian Sugar Mills Association (ISMA), sugar production is projected to be a record 36.5 mt this season against 36 mt last season. The output is up 3.5 per cent in the first three months, ISMA said. 

 

'Production of sugar is good this season,' said Vithalani. 'The yield got affected due to rains in November-December but the situation is neither alarming nor worrisome,' said Shaikh. 'The situation will be clear in a week to 10 days time,' he said. Trade sources said production in Uttar Pradesh has also been affected. 

 

The Indian government capped sugar exports at 10 mt last season after record shipments raised fears of a domestic shortage. In order to ensure ample stocks during the festival season, it capped the exports from June 1, 2002. Still, it allowed an additional 1.2 mt, taking total shipments to a record 11.2 mt.

 

In view of last season’s experience, the Centre permitted sugar exports from November 2022, only fixing a 6 mt quota. It has also stipulated that the shipments must be done by May 31. 

 

Besides sugar production being estimated at a record high, about 4.5 mt of sugar is being diverted for the production of ethanol, a new high. 

 

ISMA said there is scope for the export of 9 mt of sugar this season which would leave 5.5 mt of closing stocks, the same as last season after domestic sales of 27.5 mt. 

Union Budget 2023-24 may focus on coarse grains or millets as means of sustainable cultivation that can raise income of small farmers in arid regions besides providing food and nutritional security globally, people familiar with the development said.

 

A roadmap to promote millets is expected in the Budget as Prime Minister Narendra Modi wants India, the world’s largest producer of coarse grains, to take the lead in making 'the superfood' a mass movement, they added requesting anonymity.

 

India, along with the world, is celebrating the International Year of Millets, 2023, which has been declared by the UN based on a proposal moved by India and endorsed by 70 nations.

 

'It is PM Modi’s effort that the UN accepted 2023 as the international year of millets, a proposal of India that was endorsed by over 70 countries. It is something which is part of Indian civilisation with potential to address global scourge of hunger and malnutrition,' one of the people, who works in an economic ministry said.

 

There is a need to focus on promoting coarse grains such as jowar (sorghum), bajra (pearl millet), ragi (finger millet), sanwa (barnyard millet), kangni (foxtail millet), chena (proso millet), kodo (kodu millet), kutki (little millet), and kuttu (buckwheat), a second official working in a different ministry said. 'In fact, proportion of coarse grains under National Food Security Act (NFSA) may go up as many states have specifically asked for millets – for example Kerala sought a supply of about 1,000 tonnes of ragi,' he said adding that the Union Budget may nudge various central and state ministries and departments to promote millets.

 

The demand for coarse grains is rising globally due to their health benefits and this opportunity could be tapped by Indian farmers and start-ups as highlighted by the Prime Minister in August 2022.

 

'For our small farmers, millets are especially beneficial. Millet hay is also considered the best fodder. Nowadays, the young generation is much focused on Healthy Living and Eating. Even if you look at it this way, millets contain plenty of protein, fibre, and minerals. Many people even call it a superfood,' the Prime Minister said in his radio programme ‘Mann ki Baat’ in August 2022.

 

'Millets have many benefits, not just one. Along with reducing obesity, they also reduce the risk of diabetes, hypertension and heart related diseases. Along with that, they are also helpful in preventing stomach and liver ailments… Millets are also very beneficial in fighting malnutrition, since they are packed with energy as well as protein,' he added.

 

According to government data, the production of millets in India has increased from 14.52 million tonnes in 2015-16 to 18.02 million tonnes in 2020-21. The global millets market is expected to have a CAGR (compound annual growth rate) of 4.5% between 2021 and 2026, the second official said.

 

Millets are covered under the minimum support price (MSP) mechanism and part of the public distribution system (PDS). There are over 250 start-ups working on millets and they are supported by the central government, he added.

 

Speaking at the ‘Millets-Smart Nutritive Food’ Conclave on last month (December 5), commerce minister Piyush Goyal said: 'We must work together to mainstream the millet story and make millets globally acceptable to solve problems of malnutrition and starvation that many parts of the world continue to face.'

 

On December 6, Prime Minister Narendra Modi called for crop diversification and millet farming to enhance global food security and make agriculture climate resilient in a message delivered during the opening ceremony of International Year of Millets in Rome, the headquarters of the UN’s Food and Agriculture Organisation, an official statement said.

The country’s corn imports in market year 2022-2023 could reach 1 million metric tons (MMT) on the back of the extension of lower tariffs on the commodity and anticipated easing of global prices.

 

In its latest projections, the United States Department of Agriculture – Foreign Agricultural Service in Manila (USDA-FAS) estimated that corn imports in the current market year would be two-thirds over the previous market year’s 600,000 MT.

 

The Philippines’s current market year for corn is from July 2022 to June 2023.

 

'FAS Manila estimates MY 2022/23 corn imports at 1 million, up by 300,000 MT from USDA Official because of the extension of lower tariffs through 2023, as well as competitive Asean corn price quotes,' the USDA-FAS Manila said in its Global Agricultural Information Network (GAIN) report.

 

The international agency noted that Indonesia has 'expressed interest' in exporting corn to the Philippines due to low domestic demand in the former.

 

'Estimated Indonesian corn exports to the Philippines for the current marketing year are from 200,000 MT to 250,000 MT,' the USDA-FAS Manila said.

 

The Office of the Press Secretary earlier announced that the administration of President Ferdinand R. Marcos Jr. would extend the lower tariff rates on pork, corn, rice, and coal until the end of the year to ease accelerating inflation.

 

The USDA-FAS Manila pointed out that applications for corn imports through the Bureau of Plant Industry (BPI) have more than doubled to 627,871 MT from 298,831 MT.

 

Meanwhile, approved sanitary and phytosanitary import clearances for corn imports rose by 83 percent to 367 from 201 during the July to September period, the USDA-FAS Manila added.

 

'This is attributed to the passage of Executive Order No. 171, Series of 2022, which feed millers have taken advantage of,' it said. Executive Order 171 ordered the reduction of corn tariffs.

 

The USDA-FAS Manila estimated that total corn feed consumption of the Philippines would reach 6.9 MMT, 100,000 MT higher than the previous market year because of the extension of lower tariffs and anticipated competitive future price quotes.

 

'Corn is still the preferred feed ingredient, especially for broilers and layers when available,' it added.

 

In terms of production, the country’s corn output would fall to 7.9 MMT from 8.344 MMT due to lower fertilizer applications because of higher prices of the planting input, according to the USDA-FAS Manila.

 

'While farm-gate prices have become attractive for corn farmers, this was tempered by the high production costs [of which fertilizer is a major factor]. As with rice, FAS Manila believes that there is a reduction in corn production [as opposed to Philippine government data],' it said.

To familarise participants and enhance awareness amongst them on export opportunities, Assam Trade Promotion organisation (ATPO) on Tuesday organised a seminar on 'Potential for Export with Special reference to Bangladesh and Bhutan' at Maniram Dewan Trade Centre during the ongoing ATPO International Winter Expo' 2022.

 

ATPO, a Section 8 company under Industries, Commerce & PE Department, Govt of Assam, is organising the 'ATPO International Winter Expo' 2022' at Maniram Dewan Trade Centre, Betkuchi, Guwahati from December 23, 2022 to January 5, 2023, in association with National Small Industries Corporation (NSIC) and Industries, Commerce & Public Enterprise Department, Govt of Assam.

 

 • ‘Food Processing Week 2.0’ organised by the Ministry of Food Processing Industries, under the ‘Kisan Bhagidari Prathmikta Hamari’ Campaign by the Ministry of Agriculture & Farmers Welfare under the 'Azadi Ka Amrit Mahotsav' umbrella.

    • Virtual Inauguration of 75 Food Processing Projects by Union Minister for Food Processing Industries Pashupati Kumar Paras.

 

 

B. Creation of Infrastructure Facilities

    • A total of 112 food processing projects were completed/operationalised covering - Mega Food Park:1, ColdChain:15, Units:71, Agro-Processing Clusters(APC):4, Food Testing Laboratories:20, Backward & Forward Linkage projects:1

    • The 112 completed projects have created additional processing and preservation capacity of agricultural produce of 23.08 lakh MT per annum. 15 cold chain infrastructure projects created additional milk processing and storage capacity of 23.30 lakh litre per day and 9.25 MT/hour of IQF (Instant Quick Freezing) of fruits and vegetables.

    • The 112 completed projects leveraged private investment of Rs 706.04 crore and generated direct and indirect employment for 25,293 persons.

C. Approval of New Infrastructure Facilities

    • A total of 190 food processing projects were sanctioned viz; Agro Processing Clusters:23, Cold Chain:33, Units:120, Food Testing Laboratories:12 and Mega Food Park:2

    I. Aatmanirbhar Bharat Abhiyan

    II. Production Linked Incentive Scheme (PLIS) for the Food Processing Industries

 

As part of 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 Rs 10,900 crore 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.

Paradip Port handled 96.81 million tonnes (mt) of cargo between April and December, up 15.5 per cent over the year-ago period, with nearly 12.6 mt being the throughput handled in December alone.

 

This was the highest monthly throughput handled, a statement said, adding that the port is poised to 'set an all-time record for cargo handling of more than 125 mt' in the current fiscal.

 

Thermal coal handling grew by 58.11 per cent year-on-year. At 30.56 mt, thermal coal accounted for nearly a third (31.56 per cent) of the total volume handled.

 

'Paradip Port is emerging as a coastal shipping hub and plans to ship thermal coal to power houses in Rajasthan, Uttar Pradesh and Haryana,' the statement said.

 

Petroleum, oil and lubricant (POL) products formed the second largest chunk of items handled at 27.59 mt or 28.49 per cent of the total.

 

Other items handled include coking coal (7.88 per cent of the total at 7.63 mt) and iron ore and pellets (constitute 11.76 per cent at 11.39 mt).