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Budget proposals to help boost India's exports: Piyush Goyal.
Feb 03, 2023
A number of measures such as tweaks in customs duties on certain products announced in the Union Budget for 2023-24 will help boost the country's exports, Commerce and Industry Minister Piyush Goyal said on Wednesday. He said that despite global economic uncertainties, India's goods and services exports together are registering nearly 14-15 per cent growth.
'The world is seeing recessionary conditions and global growth and global trade is also expected to slow down. Despite that when we combine our merchandise and service exports, we are still at quite a sweet spot...We believe that we will close this year also at a double-digit growth in goods and services combined,' Goyal told PTI.
He said that merchandise outbound shipments will be 'slightly less' as the whole world is overstocked, high inventories are there, and inflation has caused consumer demand to fall.
'As the global economy recovers from these stresses, particularly of inflation, next year we hope to do better even in merchandise exports and the finance minister (Nirmala Sitharaman) has been generous with her budget allocations for the commerce and industry ministry. So I am quite confident that this will give a boost to our exports,' he added.
When asked about the tweak in customs duties on certain products, the minister said the finance minister has 'intelligently' calibrated the duties both upward and downward.
In the Budget, customs duty on lab-grown diamonds has been removed from 5 per cent earlier.
Goyal said that seeds used in lab-grown diamonds (LGD) are essential raw materials which are processed in India and help us create high-quality LGD which have a large market.
'LGD exports have grown multi-fold in the last 3-4 years and the industry tells us that there is a potential for adding nearly another 4x or 5x growth in the next few years,' he added.
Replying to a question on the announcement about continuation of concessional import duty on lithium-ion cells, the commerce minister said that the government is promoting domestic manufacturing of electric vehicles and these cells are an essential component.
'Since we do not have domestic manufacturing (of these cells) as yet, it is essential to continue this concessional duty so that the cost of 2, 3, 4 wheeler EVS can be kept under control and low which will encourage faster adoption of EVs,' he added.
Sitharaman in the budget for 2023-24 proposed a cut in import duty on seeds used to make lab-grown diamonds with a view to boosting domestic manufacturing.
The minister also announced that the government from April 1, 2013, will launch a revamped credit guarantee scheme for MSMEs with an outlay of Rs 9,000 crore.
As part of India’s Presidency of G-20, Workshop Organised on Agriculture Infrastructure Fund (AIF), Madhya Pradesh Farm Gate App & participation of Women entrepreneurs in the Agriculture sector.
Feb 03, 2023
On the occasion of India's presidency of the G-20, through the theme 'One Earth, One Family,One Future', a one-day workshop was organized today at Noronha Administrative Academy, Bhopal on the Madhya Pradesh Farm Gate App and Agriculture Infrastructure Fund (AIF), with the aim of encouraging the sense of global unity and increasing the participation of women in the field of agriculture. The main objective of this workshop was to increase the participation of womenin the Agriculture Infrastructure Fund (AIF) and M.P. Farm Gate.
Smt. G.V. Rashmi, Managing Director, Mandi Board, in her address, gave information related to the Agriculture Infrastructure Fund (AIF) in Madhya Pradesh, as well as highlighted the features of MP Farm Gate App developed by the Mandi Board. Conveying his compliments, Madhya Pradesh Agriculture Minister Shri Kamal Patel, in his video message, called for the widespread use of the AIF scheme and the MP Farm Gate App.
Joint Secretary (Agriculture Extension and Agriculture Infrastructure Fund), Government of India, Shri Samuel P. Kumar, in his address, mentioned that the AIF scheme has been widely publicized in Madhya Pradesh, in which, till date, about 2,753 projects have been set up by women entrepreneurs, availing the benefits of this scheme widely. Madhya Pradesh is at the first place in comparison to other states in the outreach of the AIF scheme. He gave detailed information about the scheme. While participating in the workshop, Shri Ashok Varnwal, Additional Chief Secretary, Agriculture Department, Government of Madhya Pradesh, highlighted the important role of MP Farm Gate app. He said the app made it convenient for the farmers to sell their produce on the app, fetching remunerative price for their crops.
Around 200 participants attended the workshop. In the workshop, the participants were made aware about the Agriculture Infrastructure Fund (AIF) scheme. Details were given by the experts from Agriculture Department, NABARD, Horticulture, APEDA, Banks and other organizations. Doubts among the participants were resolved during the question-answer session in the workshop. Information about the MP Farm Gate App was also given to women farmers, agricultural entrepreneurs, businessmen etc. At the end of the workshop, Additional Director of Madhya Pradesh State Agricultural Marketing Board, Shri D.K. Nagendradelivered the Vote of Thanks.
APEDA organizes Virtual-Buyer Seller Meet to harness export opportunities in UAE for millets.
Feb 03, 2023
As a part of its series of sensitization programmes that are aimed at promoting the export of millets and its value added products, the Agriculture and Processed Food Products Export Development Authority (APEDA) today organised a Virtual-Buyer Seller Meet to harness export opportunities in United Arab Emirates (UAE).
The Buyer Seller Meet was organized in association with Indian Mission in UAE under the leadership of Indian Ambassador to UAE Shri Sanjay Sudir.
APEDA, which works under the Ministry of Commerce & Industry, is working in tandem with different stakeholders to accomplish the vision of Hon’ble Prime Minister Shri Narendra Modi to promote the consumption of millets worldwide.
On the occasion, the APEDA also launched e-Catalogue for the UAE which cotains information on various Indian Millets and range of their value-added products available for export, list of active exporters, start-ups, FPOs and importer/retail chain/hyper markets, etc.
The e-Catalogue for U.A.E has been circulated to the Indian Embassy and potential importers, exporters, start ups and other stakeholders in the Millet supply chain.
During the buyer seller meet, several importers, exporters, Start-ups and other stakeholders in the Millet supply chain participated and interacted with each other to explore the export opportunities of Millet and its value added products.
Noting that India has always been a trusted partner of UAE, Indian Ambassador Shri Sanjay Sudir said that there are huge export opportunities of Indian Millets and its value added products to UAE and other markets in the region.
Speaking on the occasion, APEDA Chairman M Angamuthu said, 'It’s a Mission and Vision of Hon’ble Prime Minister Shri Narendra Modi to promote Millets in the international market. The APEDA team is ready to provide all required help to exporters, millet producers, women FPOs, etc to promote Indian millets across the globe.'
Stressing on coordinating with buyers, sellers, producers, to take forward the export of millets and value added products of millets, Angamuthu said, 'It’s a good opportunity to boost our exports as India has very distinctive traditional varieties of millets which are loved by health-conscious people. The export of millets will help in increasing the income of farmers.'
APEDA has also planned to organize millet promotional activities in South Africa, Dubai, Japan, South Korea, Indonesia, Saudi Arabia, Sydney, Germany, United Kingdom and United States of America by facilitating participation of different stakeholders from India in some of the significant food shows, Buyer Seller Meets and Road Shows.
As part of the promotion of Indian millets, APEDA has planned to showcase millets and its value added product at various global platforms such as Gulfood 2023, Foodex, Seoul Food & Hotel Show, Saudi Agro Food, Fine Food Show in Sydney (Australia), Belgium’s Food & Beverages Show, Germany’s BioFach and Anuga Food Fair, San Francisco’s Winter Fancy Food Show, etc.
India is one of the leading producers of millets in the world with an estimated share of around 41 percent in the global production. As per FAO, world production of millets in the year 2020 was 30.464 million metric tonnes (MMT) and India’s share was 12.49 MMT, which accounts to 41 percent of the total millet production. India recorded 27 percent growth in millet production in 2021-22 as compared to millet production in the previous year was 15.92 MMT.
India’s top five millet producing states are Rajasthan, Maharashtra, Karnataka, Gujarat and Madhya Pradesh. Share of export of millets is nearly 1% of the total millet production. Exports of millets from India include mainly whole grain and the export of value-added products of millets from India is negligible.
However, it is estimated that the millets market is set to grow from its current market value of more than USD 9 billion to over USD 12 billion by 2025.
The government is also mobilizing start-ups for export promotion of value-added products in the Ready to Eat (RTE) and Ready to Serve (RTS) category such as noodles, pasta, breakfast cereals mix, biscuits, cookies, snacks, sweets, etc.
As per the government’s millet promotion strategy, major international retail supermarkets like Lulu group, Carrefour, Al Jazira, Al Maya, Walmart, etc. would also be roped in to establish millet corner for branding and promotion of millets.
As per the DGCIS data, India registered a growth of 8.02% in the export of millets in the financial year 2021-22 as the export of millets was 159,332.16 metric tonne against 147,501.08 metric tonne during the same period last year.
India’s major millet exporting countries are U.A.E, Nepal, Saudi Arabia, Libya, Oman, Egypt, Tunisia, Yemen, U.K and U.S.A. The varieties of millets exported by India include Bajra, Ragi, Canary, Jawar, and Buckwheat.
The major millet importing countries in the world are Indonesia, Belgium, Japan, Germany, Mexico, Italy, the U.S.A, United Kingdom, Brazil and Netherlands.
There are 16 major varieties of millet, which are produced and exported, including Sorghum (Jowar), Pearl Millet (Bajra), Finger Millet (Ragi) Minor Millets (Kangani), Proso Millet (Cheena), Kodo Millet (Kodo), Barnyard Millet (Sawa/Sanwa/Jhangora), Little Millet (Kutki), Two Pseudo Millets (BuckWheat/Kuttu), Amaranthus (Chaulai) and Brown Top Millet.
APEDA has also signed a Memorandum of Understanding (MoU) with IIMR to boost value-addition and farmers’ income. APEDA launched a variety of millet products for all age groups at affordable prices ranging from Rs 5 to Rs 15 during AAHAR food fair, which is Asia’s biggest B2B international food and hospitality fair.
India's Foodgrains Production touched a record 315.7 million tonnes in 2021-22
Feb 03, 2023
India’s foodgrains production touched a record 315.7 million tonnes in 2021-22 despite climate change challenges says the Economic Survey 2022-23 tabled in the Parliament by the Union Minister of Finance and Corporate Affairs Smt. Nirmala Sitharaman here today. Further, as per the First Advance Estimates for 2022-23 (Kharif only), total foodgrains production in the country is estimated at 149.9 million tonnes which is higher than the average Kharif foodgrain production of the previous five years (2016-17 to 2020-21). The production of pulses has also been notably higher than the average of 23.8 million tonnes in the last five years points the Survey.
Mission for Integrated Development of Horticulture (MIDH)
The Survey describes, Horticulture as a 'high growth area' and 'a source of buoyant growth and improved resilience for farmer'. According to third advance estimates (2021-22), a record production of 342.3 million tonnes in an area of 28.0 million hectares was achieved. The Government has identified 55 horticulture clusters, of which 12 have been selected for the Cluster Development Programme (CDP) pilot phase. MIDH is designed to leverage the geographical specialisation of horticulture clusters, promote integrated and market-led development of pre-production, production and post-harvest activities across the entire supply chain.
Animal Husbandry, Dairying and Fisheries
The allied sectors of Indian agriculture - livestock, forestry & logging and fishing & aquaculture are gradually becoming sectors of robust growth and a potential source of better farm incomes says the Survey.
The livestock sector grew at a CAGR of 7.9 per cent during 2014-15 to 2020-21 (at constant prices), and its contribution to total agriculture GVA (at constant prices) has increased from 24.3 per cent in 2014-15 to 30.1 per cent in 2020-21. Similarly, the annual average growth rate of the fisheries sector has been about 7 per cent since 2016-17 and has a share of about 6.7 per cent in the total agricultural GVA. The dairy sector which employs more than eight crore farmers directly is critical along with products like eggs and meat. India ranks first in milk production in the world, it ranks third in egg production and eighth in meat production in the world points the Survey.
Cognisant of the importance of the allied sectors, the Government has made multiple interventions to enhance the infrastructure, improve productivity and disease control. Under, Animal Husbandry Infrastructure Development Fund, 116 projects have been approved with total cost of Rs.3,731.4 crore. The scheme was launched with a total allocation of Rs.15,000 crore. While the National Livestock Mission lays emphasis on breed development and entrepreneurship development, the Livestock Health & Disease Control Scheme is being implemented to prevent control and contain animal diseases of economic and zoonotic importance and the National Animal Disease Control Programme is being implemented to control Foot & Mouth Disease and Brucellosis.
Pradhan Mantri Matsya Sampada Yojana (PMMSY), with a total outlay of Rs.20,050 crore. PMMSY marks the highest-ever investment in the fisheries sector in India, to be implemented over five years from FY21 to FY25 across the country to drive sustainable and responsible development of the fisheries sector while ensuring socio-economic development of the fishers, fish farmers and fish workers. Under a dedicated Fisheries and Aquaculture Infrastructure Development Fund (FIDF), proposals to the tune of Rs.4,923.9 crore have been approved and have benefitted over 9.4 lakh persons, through direct and indirect employment, in fishing and allied activities as on 17th October 2022.
The Survey describes that the food management programme in India comprises procurement of food grains from farmers at remunerative prices, distribution of food grains to consumers, particularly the vulnerable sections of society, at affordable prices and maintenance of food buffer stock for food security and price stability. The Government in a recent decision has decided to provide free foodgrains to about 81.35 crore beneficiaries under the National Food Security Act (NFSA), 2013 for one year from 1st January 2023. Further, to remove the financial burden of the poor, the government will spend more than Rs.2 lakh crore in this period on food subsidies under NFSA and other welfare schemes says the Survey. During Kharif Marketing Season (KMS) 2021-22, 581.7 lakh metric tons (LMT) of Rice was procured against an estimated target of 532.7 LMT. In the current year, KMS 2022-23, a total of 355 LMT of rice has been procured up to 31 December 2022.
Under the PM Garib Kalyan Anna Yojana, the Government allocated about 1,118 LMT foodgrains to the States/UTs to ease the hardships faced by the poor during the COVID-19 pandemic. To further ease the process of access to food, the Government launched a citizen-centric and technology-driven scheme in 2019 called the One Nation One Ration Card (ONORC) scheme. The ONORC system enables intra-State and inter-State portability of ration cards. Presently, the national/inter-State portability is enabled in all 36 States/UT, covering 100 per cent of the total NFSA population.
International Year of Millets
The United Nations General Assembly, in its 75th session during March 2021, declared 2023 the International Year of Millets (IYM). India produces more than 50.9 million tonnes (as per fourth advance estimate) of millet which accounts for 80 per cent of Asia’s and 20 per cent of global production. The global average yield is 1229 kg/ha, whereas India has a higher average yield of 1239 kg/ha. Given the nutritional value of the millets, the Government notified Millets as Nutri-cereals in April 2018. Under the National Food Security Mission (NFSM), millets have been introduced to provide nutritional support. A sub-mission on Nutri-cereals is being implemented since 2018-19 in 212 districts of 14 States. India has more than 500 start-ups working in the millet value chains.
Food Processing Sector
Over the last five years ending FY21, the food processing industries sector has been growing at an average annual growth rate of around 8.3 per cent. The food processing sector is of enormous significance for India's development because of the strong connections and interactions it promotes between industry and agriculture. The value of agri-food exports, including processed food exports, was about 10.9 per cent of India's total exports during 2021-22 points the Survey.
Recognising the abundant potential of the sector, the Government has been at the forefront with various interventions aimed at the development of food processing in the country. Through the component schemes of Pradhan Mantri Kisan SAMPADA Yojana (PMKSY), for the overall growth and development of the food processing sector, 677 projects have been completed till 31 December 2022. Further, under the Prime Minister's Formalisation of Micro Food Processing Enterprises (PMFME) Scheme to enhance the competitiveness of individual micro-enterprises in the unorganised segment and promote the formalisation of this sector, as of 31 December 2022, 15,095 loans of Rs.1402.6 crore were sanctioned. The scheme adopts One District, One product (ODOP) approach to reap the benefit of scale in procuring inputs, using shared services and marketing products. So far, 713 Districts with 137 unique products were approved under the ODOP in 35 States/ UTs. The Production Linked Incentive Scheme for Food Processing Industry (PLISFPI), launched in March 2022, has the specific mandate to incentivise investments to create global food champions. Sectors with high growth potential, like marine products, processed fruits & vegetables, and ‘Ready to Eat/ Ready to Cook’ products, are covered for support points the Survey.
Agriculture Infrastructure Fund (AIF)
The NITI Aayog Strategy for New India identifies the lack of adequate and efficient cold chain infrastructure as a critical supply-side bottleneck that leads to massive post-harvest losses (mostly of perishables) estimated at Rs.92,561 crore annually. To tackle this and unlock the growth potential of the agriculture and allied sector, the Government introduced AIF. It is a financing facility operational from the year 2020-21 to 2032-33 for the creation of post-harvest management infrastructure and community farm assets, with benefits including 3 per cent interest subvention and credit guarantee support. Since its inception, an amount of Rs.13,681 crore has been sanctioned for agriculture infrastructure in the country, covering more than 18,133 projects. These include 8,076 warehouses, 2,788 primary processing units, 1,860 custom hiring centres, 937 sorting & grading units, 696 cold store projects, 163 assaying units and around 3613 other kinds of post-harvest management projects and community farming assets.
National Agriculture Market (e-NAM)
As on 31 December 2022, more than 1.7 crore farmers and 2.3 lakh traders have been registered on e-NAM portal. The scheme was launched to create an online transparent, competitive bidding system to ensure farmers get remunerative prices for their produce Under the e-NAM Scheme, the Government provides free software and assistance of Rs.75 lakh per APMC mandi for related hardware, including quality assaying equipment and the creation of infrastructure like cleaning, grading, sorting, packaging, compost unit, etc.
The Survey observes that the performance of the agriculture sector remains critical to growth and employment in the country. Investment in the sector must be encouraged through an affordable, timely and inclusive approach to credit delivery. A focus on the horticulture sector and the thrust towards allied activities have diversified farmers’ income making them more resilient to weather shocks. All these initiatives have led to sustainable and inclusive development of the sector.
Indian rose blooms again due to Russia-Ukraine war.
Feb 03, 2023
The Russia-Ukraine war has gained an unlikely beneficiary in the Indian rose (flower) export market. According to officials of the Talegaon-based Indian Society of Floriculture Professionals (ISFP), Indian rose farmers are expecting rose exports to double this Valentine season as the ongoing war has discouraged Europe from growing flowers. According to Praveen Sharma, president of ISFP, India’s total rose exports have touched Rs.18.34 crores in November 2022 as against Rs.9.68 crores in 2021.
'The war in Europe and the energy crisis has discouraged growers in Europe from growing flowers during the winters. This is mainly because of high energy consumption which includes heating, artificial lighting, CO2 enrichment and above all, high labour costs,' Sharma said.
'Many leading Dutch growers have decided to pause production during the winter season owing to the said reasons. Considering all this, our flowers are in demand as affirmed by sales data till November,' he said.
According to ISFP, India’s flower exports are back on track again after the Covid-19 setback. The last two years were very bad for exports, with many flower growers pausing production. However, domestic markets offered relief during the pandemic. And now due to the resurgent economy and growing domestic market, flower growers have reason to cheer once again. This year, there are great opportunities in the international market as well. ISFP officials further said that they are inching close to India’s 2019 export levels although the biggest challenge for exporters is the rising freight costs, which have gone up nearly 30% as compared to last year. The negotiations with foreign buyers have been tough, mainly due to the rise in freight costs.
Indian roses have a distinct image in the international market, and are primarily exported to the UK (35% of total exports), Australia (19%) and Japan (18%) followed by special orders for the Valentine season from Malaysia, Singapore and the Gulf countries. Maval taluka in Pune district is a major floriculture hub for the cultivation of export-quality flowers. The ISFP expects flower exports to cross Rs.50 crores (back to pre-Covid levels) this Valentine season. Besides Maharashtra, the major rose-growing states in the country include Tamil Nadu, Karnataka and West Bengal. Exports are mainly from the Mumbai and Bangalore airports, with Mumbai accounting for more than 60% of shipments for the Valentine season.
Haryana : Domestic consumers shell out more as foodgrain exports continue to surge.
Feb 03, 2023
As per traders, basmati rates have reached an all-time high of Rs.120 to Rs.170 per kg (depending upon the quality and variety) from Rs.90 to Rs.140 three months ago, due to increasing exports amid falling production. The rates of parmal (non-basmati) rice have also witnessed an increase, going from Rs.30 to Rs.40 per kg three months ago to above Rs.45 per kg now.
Domestic consumers are on the receiving end as the rates of foodgrains, including basmati and non-basmati rice, besides wheat flour, have shot up due to the growing exports.
As per traders, basmati rates have reached an all-time high of Rs.120 to Rs.170 per kg (depending upon the quality and variety) from Rs.90 to Rs.140 three months ago, due to increasing exports amid falling production.
The rates of parmal (non-basmati) rice have also witnessed an increase, going from Rs.30 to Rs.40 per kg three months ago to above Rs.45 per kg now.
The rate of wheat flour is hovering between Rs.38 and Rs.40 per kg as compared to Rs.30 earlier.
Wheat grain is also fetching a whopping Rs.2,800 per quintal, against the minimum support price (MSP) of Rs.2,125, in the domestic market despite a ban on exports. The government had banned wheat exports in May last year in view of a dip in production. While in 2020-21, the country had produced 109.59 million tonnes of wheat, in the subsequent year (2021-22), it had produced 106.84 million tonnes.
Bunty Garg, a rice-trader from Taraori of Karnal, said, 'The prices of basmati and non-basmati rice are rising with every passing month. Even the rates of common basmati rice have shot up to Rs.110 per kg from Rs.85 two months ago.'
Rice exporters from Karnal say the global surge in demand for basmati is driving the surge in domestic rates.
Former vice-president of All-India Rice Exporters’ Association Vijay Setia said, 'With around 13% increase in basmati exports and more than 5% increase in non-basmati rice exports in the international market, the prices of both varieties have witnessed a surge in the domestic market. Though basmati consumers are not affected much, the increase in prices of non-basmati which is called common man’s rice is worrisome.'
India’s exports see a rise
The latest comparative statement of Agricultural and Processed Food Products Export Development Authority (APEDA) reveals that India’s cereal export between April and November 2022 reached Rs.72,626 crore as compared to Rs.57,658 crore for the corresponding period in 2021.
The figures revealed that 27.32 lakh tonne of basmati was shipped between April and November against 23.97 lakh tonne in the corresponding period last year and the price of Basmati touched 1,051 USD ( Rs.85,971) per tonne in November 2022 against 860 USD ( Rs.70,348) per tonne in November in the last financial year.
The government had even imposed 20% duty on rice exports during this period but the basmati export increased.
Wheat export reached to Rs.11,727 crore from Rs.8,658 crore. Despite poor production last rabi harvesting season, India had exported 4.92 lakh MT wheat more than the previous year as the figures reveal that India’s wheat export from April to November this year was 46.56 lakh MT against 41.64 lakh MT of the last year.
The biggest reason behind the surge in the wheat export is surge in the prices in the international market -- it increased to 324 USD ( Rs.26,503) in November this year from 280 USD ( Rs.22,904) last year. 'We are selling wheat flour at Rs.35 per kg and maize flour at Rs.40 a kg. This is the highest ever it has gone in recent memory and there is a strong possibility that the prices will increase further,' said Pawan Kumar, a trader of Ladwa of Kurukshetra.
Agriculture economist and food expert Devinder Sharma said increased export is leading to increase in prices of wheat flour and rice. 'Though basmati consumers can afford this increase in prices, the main concern is the increase in prices of parmal rice which is consumed by the common man. As of now, the government has enough stock of rice. But the increase in wheat flour rates is worrisome. Even the Food Corporation of India has offered to sell wheat in open market to bring down the prices but there is need of more steps deal with the problem and protect the consumers.'
Over 27,000 farmers register vineyards for grape exports.
Feb 03, 2023
Over 27,000 farmers have registered their vineyards, on around 18,000 hectare, for grape export in the Nashik district so far.
The initial deadline for registration of vineyards was November 30, 2022. However, at that time, only 18,000 farmers had registered their vineyards on 12,000 hectares.
Considering the poor response, the state agricultural department extended the deadline for registration to January 15.
The agricultural department officials said they are expecting a 20% rise in grape exports this season. They are expecting the export from the district to cross 1.5 lakh metric tonnes. Last year, the district exported 1.22 lakh MT of grapes.
The grape export from the district began in the first week of January. So far, 3,524 metric tonnes of grapes have been exported to European countries, including 3,026 MT to the Netherlands and 155 MT to Germany.
The area under grape plantation in Nashik district is estimated at around 58,367 hectares, including 22,000 hectares in Niphad taluka, 15,758 hectares in Dindori taluka, 11,671 hectares in Nashik taluka and 5,148 hectares in Chandwad taluka. The rest of the grape plantation is done in Bagalan and Kalwan taluka of the district.
Of the 58,367 hectares, early grape harvest takes place between September and November on 2,400 hectares. The regular grape harvest begins in December on the remaining area.
India rice export prices stay high on strong demand, limited supply.
Feb 03, 2023
Rice export prices from India rose to their highest level since April 2021 this week, aided by firm demand and tight supplies, while elevated rates in Thailand kept buyers at bay.
Top exporter India's 5% broken parboiled variety was quoted at $393 to $398 per tonne this week, up from last week range of $387-$395.
'Government has made record purchases of unmilled rice from farmers this year. Limited amounts of supplies are available to private players for the exports,' a New-Delhi-based dealer with a global trade house said.
India's rice exports in 2022 jumped to a record high despite the government's curbs on overseas sale, as buyers continued to make purchases because of competitive prices, according to government and industry officials.
Thailand's 5% broken rice prices eased slightly to $495 per tonnes, from $500 per tonne.
Traders attributed the small price drop to a slow down in demand but blamed the lack of supply and the strength of the local currency for keeping prices high which they say deter buyers.
A Bangkok-based trader said prices could change once new supplies enter the market at the beginning of March.
High cost of freighter also contributed to muted supply and the rise in rice prices, another trader said.
In Vietnam, 5% broken rice were offered at $445-$450 per tonne, free on board, unchanged from two weeks ago.
'Traders are resuming their rice purchases from farmers to prepare for new contracts, following the holiday,' a Ho Chi Minh City-based trader said.
Vietnam exported 400,000 tonnes of rice in January, down 20.9% from a year earlier, government data released on Sunday showed.
Bangladesh's rice production in the marketing year to April has been revised upward to 35.8 million tonnes, the U. S. Department of Agriculture said in its latest update.
Massive Shipment of Rice Import Arrives in Indonesia: Bulog.
Feb 03, 2023
President director of the State Logistics Agency (Bulog) Budi Waseso on Thursday said there are 300,000 tons of rice imports that have landed in Indonesia, with additional 200,000 tons currently still at sea or docking at ports.
'Imported (rice) that has entered reach 300 (thousand tons) while more than 500 (thousand tons) are now on the ocean at the port, waiting for the unloading,' said Budi in a press conference at the National Logistics Agency, Jakarta, Thursday, February 2.
The dock unloading process is currently hurdled by weather, which can spoil the imported commodity.
The commodity came from a number of rice-producing countries such as Pakistan, Myanmar, Thailand, and Vietnam.
'A small portion is from Pakistan because Pakistan only has that much available time. Some came from Myanmar. Most of it [was imported from] Thailand and Vietnam,' said Budi.
According to him, one of the reasons for the delay in the arrival of imported rice was bureaucracy. However, he did not explain further about this bureaucracy.
Kendriya Bhandar begins sale of wheat flour at lower rate of Rs 29.50/kg; Nafed, NCCF to start from Feb 6.
Feb 03, 2023
To provide relief to consumers from rising wheat flour prices, Kendriya Bhandar has started selling the commodity at Rs 29.50 per kg from Thursday, while cooperatives Nafed and NCCF will also sell at the same price from February 6 across the country, according to the Food Ministry. These institutions agreed to brand wheat flour as 'Bharat atta' or 'any other suitable name', with bold mention of a maximum retail price of Rs 29.50 per kg, it said in a statement.
This was conveyed on Thursday in a review meeting chaired by Food Secretary Sanjeev Chopra on the progress of the sale of 30 lakh tonne of wheat from buffer stock under the Open Market Sale Scheme (OMSS) in the domestic market.
'Kendriya Bhandar has already started the sale of atta at Rs 29.50 per kg from today itself. However, NCCF and NAFED will supply atta at Rs 29.50 per kg from February 6th onward,' the ministry said.
The MRP or maximum retail price of wheat flour sold by these institutions is, however, lower than the current average all-India retail price of Rs 38 per kg.
About 3 lakh tonne of wheat is being offered to these institutions without e-auction under the OMSS for converting the grain into atta and selling at Rs 29.50 per kg. Out of which, one lakh tonne each has already been allocated to Kendriya Bhandar and Nafed, respectively, while 50,000 tonne to NCCF.
This is part of the total 30 lakh tonne wheat, which the government plans to offload from buffer stock in the domestic market under the OMSS for containing prices.
About 25 lakh tonne of wheat is being e-auctioned to bulk users like flour millers at Rs 23.50 per kg, while 2 lakh tonne of state governments for welfare schemes.
Representatives of Food Corporation of India (FCI), Kendriya Bhandar, National Agricultural Cooperative Marketing Federation of India (NAFED) and National Cooperative Consumers' Federation of India Limited (NCCF) were present at the meeting.
Wheat and wheat flour prices in the country have firmed up in the last few months due to tight domestic supplies in the wake of a fall in domestic output.
Under the OMSS policy, the government allows FCI to sell foodgrains, especially wheat and rice, at predetermined prices in the open market from time to time to bulk consumers and private traders. The purpose is to boost the supply during the lean season and moderate the general open market prices.
The Centre had banned wheat exports in May last year to control rising prices, after a slight fall in domestic production and a sharp decline in the FCI's procurement for the central pool.
India's wheat production fell to 106.84 million tonne in the 2021-22 crop year (July-June) from 109.59 million tonne in the previous year due to heat waves in a few growing states.
The procurement fell sharply to 19 million tonne this year from around 43 million tonne last year.
The area under wheat crop in the current rabi (winter-sown) season is slightly higher. The procurement of new wheat crops would commence on March 15.
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Agricultural & Processed Food Products Export Development Authority
(Ministry of Commerce & Industry,
Govt. of India)
NCUI Building 3, Siri Institutional Area, August Kranti Marg, New Delhi - 110 016
Phone : 91-11-26513204, 26514572, 26534186
Fax : 91-11-26526187