The four nations making up the European Free Trade Association (EFTA) have offered duty-free market access for India’s animal products, fish, processed food and vegetable oils in a trade pact that is expected to be signed next week, two people aware of the matter said.

 

The EFTA nations—Iceland, Liechtenstein, Norway and Switzerland—have also proposed $100 billion of investment in India by their companies over 15 years, which could create about a million jobs, the people said on the condition of anonymity. The two sides began negotiations for a trade treaty in 2008.

The government Wednesday notified allowing the exports of 3,000 MT of onions to Bahrain, 1,200 MT to Mauritius and 550 MT to Bhutan through National Cooperative Exports Limited.

 

The government last year, imposed a ban on onion exports till March 31 to meet domestic demand and stabilise its wholesale prices but it allows a specified quantity to be exported to friendly nations.

 

In a separate notification, the Director General of Foreign Trade (DGFT) also amended the timelines and procedures for registration of import of yellow peas under the Import Monitoring System (IMS) for consignments which will arrive at the Indian ports after March 31, 2024.

 

As per the notification, Bill of Lading details need to be declared in the IMS registration and multiple Bills of Lading details may be specified under a single registration.

All copies of Bills of Lading(Shipped on Board) should be mandatorily uploaded during the registration process.

India’s exports of agricultural products to major markets like Iraq, Vietnam, Saudi Arabia, and the UK, surged by 110 per cent, 46 per cent, 18 per cent, and 47 per cent, respectively, during April-November 2023, compared to the same period of the previous year, according to data released by Agricultural and Processed Food Products Export Development Authority (APEDA) on Wednesday.APEDA said its forward-looking strategy involves a shift towards expanding India’s export basket with a focused initiative on priority products like fresh fruits, vegetables, processed foods and animal products to reduce reliance on a few products and move up the value chain.

 

In response to feedback from exporters, APEDA is also spearheading the initiation of participation in new fairs across emerging markets such as Turkey, South Korea, Kenya, South Africa, and Japan. This proactive approach aims to facilitate greater market access and foster sustainable growth opportunities for Indian exporters.

 

With a focus on expanding into key markets such as Europe, Latin America, and Asia, APEDA aims to forge small partnerships with global supermarkets to showcase its products on an international arena.

 

Moreover, the organisation is working on to reducing transport costs of exports by establishing sea protocols through collaborations with research institutions.

 

According to an APEDA statement, concerted efforts are also being undertaken to promote Shree Anna-Millets in tune with the government's vision for cultivating a healthier and more diversified food landscape. Over the past year, with a particular focus during the International Year of Millets-2023, APEDA has worked towards the development and integration of a wide variety of value-added products under the Shree Anna brand.

 

This strategic initiative has led to the creation and mainstreaming of various value-added products, including pasta, noodles, breakfast cereals, ice cream, biscuits, energy bars, and snacks. These products have been integrated with the export value chain.

The Agricultural and Processed Food Products Export Development Authority (APEDA), under the Ministry of Commerce & Industry, Government of India, is actively driving initiatives to enhance the contribution and share of Farmer Producer Organizations (FPOs) / Farmer Producer Companies (FPCs) in the exports of Agri and processed food products and has till date registered more than 1000 FPO/FPC’s as APEDA Members.

 

With a dual aim to unlock export opportunities for agricultural and processed food products from the region and to enhance the contribution of FPO’s/FPC’s in the Agri and Processed food products, APEDA organized an exposure visit for Farmer Producer Organizations (FPOs) to the UAE. The delegation comprised 47 members, representing FPOs from UP, Bihar, and Uttarakhand.

 

During the visit, FPO's visited the Al-Aweer fruit and vegetable market to explore the possibilities and opportunities for Indian agri products specially grown in UP, Bihar and Uttarakhand. Further the delegation of FPOs visited LuLu Hypermarket to understand the requirements and pattern of purchase at Dubai market. During the visit, the FPO representatives also met with a good number of buyers and pitched their produce for export. As an immediate outcome, an FPO among the delegation finalized an order of fresh turmeric which was also flagged off to the UAE market. The other FPO's have also been able to get promising leads and are currently in negotiation with the buyers. Thus more orders are expected in the near future.

 

To evaluate the benefits of the visit and disseminate its outcomes among farmers, APEDA conducted a capacity-building and experience-sharing program in Varanasi on 5th March 2024. In the program, the representatives of FPOs who undertook the visit to the UAE, shared their experiences and learnings of the visit among other member farmers. They briefed them about the requirements/regulations to be followed for exporting agri commodities to the UAE market. They also briefly highlighted the potential products which have a significant untapped demand in the UAE market namely Mango, Green Chilly, Okra etc. which could be tapped by the farmers of the region. They also encouraged the farmers to implement good Agricultural practices (GAP), while farming so as to enable their produce to meet the regulatory requirements of the Importing countries.

 

Notably, the event also marked the flag-off of a consignment of fresh turmeric to Sharjah, UAE, showcasing the region's potential for export. Additionally, fresh fruits were exported from Varanasi's LBSI Airport to the international market, highlighting the region's expanding export capabilities.

 

Operating through its regional wing in Varanasi, and taking forward the above vision,  APEDA has identified the Purvanchal region as a model Agri Export Hub, recognizing its significance in agricultural trade and has enrolled more than 120 FPO’s from the region as its members. Special focus is being given towards enrolment of FPO’s/FPO’s dealing in ODOP/GI products, those which are Women & SC/ST led and those from the NER/Himalayan States and landlocked areas.Taking this theme forward,  APEDA officers along with departmental subject experts from the GOI and the State Government sensitized the farmers and other FPOs with the requirements of agri-export supply chain.

 

Divisional Commissioner, Varanasi Division, Government of Uttar Pradesh, Shri Kaushal Raj Sharma praised APEDA's significant efforts in the Purvanchal region, emphasizing the exposure visit for FPOs as an invaluable opportunity facilitated by APEDA. He highlighted APEDA's role in guiding FPOs towards meeting agricultural export requirements and international standards. He also noted the remarkable progress in agricultural exports, citing an increase from 151 MT in FY 2021-22 to 702 MT in FY 2023-24 (April to December), reflecting the positive outcomes of APEDA's initiatives since 2020.

 

Chairman APEDA, Shri Abhishek Dev, emphasized the significance of exposure visits in exploring agricultural export opportunities, underlining their potential to boost national foreign exchange earnings and improve farmer incomes. He remarked on the keen interest shown by FPOs in agricultural export, recognizing it as a positive indicator of the region's capacity to meet international market demands. He highlighted Uttar Pradesh's rise as the third-largest agricultural exporting state in India (APEDA Basket), attributing this achievement to the region's deep potential and APEDA’s sustained efforts in enhancing the contribution of land-locked areas in exports.

 

APEDA's interventions are positively transforming the agri-export landscape in the Purvanchal region, with significant advancements in infrastructure, market linkages, and export promotion activities. This has resulted in growth in agri-exports, positioning UP as the third-largest agri- exporting state in the country (APEDA Basket).

 

Through targeted capacity-building programs and international buyer-seller meets, APEDA has empowered FPOs and exporters, enabling them to tap into global markets and showcase the region's diverse agricultural products. The success stories of agricultural exports, ranging from fresh fruits and vegetables to rice, demonstrate the region's ability to meet global demand and establish itself as a key player in the agricultural export market.

The Siraj Hussain-led panel on the promotion of warehouse-based sale of agricultural produce has recommended that all warehouses, whether registered with WDRA or not, should be declared as deemed market yards (mandis) if they comply with the prescribed norms of State’s APMC Act/Rules. It has also been suggested that the Agriculture Ministry form a steering committee with major States for smooth and faster implementation.

 

The Expert Committee, headed by the former agriculture secretary, was set up in April 2023, is said to have submitted its report in December, and it was uploaded on the Ministry website on Monday. It has recommended a host of measures to promote warehouse-based sales, with a focus on e-Negotiable Warehouse Receipts (eNWRs) trading through eNAM and other registered e-trading platforms.

 

One of the key recommendations is the compulsory registration of all warehouses with a capacity of 1,000 tonnes or more with the Warehousing Development and Regulatory Authority (WDRA). It has also asked the government to provide credit at a subsidised interest rate when farmers avail it using eNWRs by extending the Kisan Credit Card (KCC) scheme for this purpose.

 

'All those warehouses, whether registered with WDRA or not but complying with the prescribed norms for markets set out in the respective State’s APMC Act/Rules, may be declared as deemed market-yards,' the panel also said. Further, it has suggested State governments give preference to WDRA-registered warehouses for declaring those as deemed market-yards, as only such godowns are mandated to issue eNWRs.

 

Panel to push declaration

'This would not require too much formalities at the level of APMCs/State Agricultural Marketing Boards and the State governments as WDRA has already completed extensive physical inspection of such warehouses before registration,' the panel said.

 

Suggesting the Department of Agriculture and Farmers’ Welfare to form a 'Steering Committee' with major States to push the declaration of warehouses as deemed market-yards, the panel said there is a need for appropriate legal provisioning in State’s APMC Acts, including the urgent notification of Rules 'The Steering Committee may also monitor and review the progress of the actual declaration or notification of deemed market-yards on the ground by holding regular meetings,' it said.

 

As it is mandatory for all warehouses under the Food Corporation of India (FCI), both its own and the ones leased out by private sector, to be registered with WDRA, the panel has said States should intensively promote registration of co-operative and private warehouses and undertake awareness programme among warehouse owners to encourage them to register with WDRA.

 

The committee also recommends making it mandatory that the second instalment of subsidy under any government scheme of Centre and States for warehouse construction be released only after registration with WDRA.

 

Focus on promoting eNWRs

In the first phase, focus should be on promoting warehouse-based primary trade via eNWRs through eNAM and other registered e-trading platforms, for the success of such trade on a large scale. Subsequently, a mechanism can be established to promote secondary trade, mostly happening from warehouses, via eNWRs through eNAM and other registered e -trading platforms, the panel said.

 

However, many agri-marketing experts differ on allowing secondary trade on e-NAM, as it will dilute the focus on helping farmers since there are several private sector online platforms already available for facilitating transactions between trader to trader (B2B).

 

The panel said that allowing secondary trade through eNAM and other registered e-trading platforms would necessitate the formulation of market rules covering trading procedure, payment, transaction charges, dispute settlements, etc.

 

The panel stated that allowing secondary trade through eNAM and other registered e-trading platforms would necessitate the formulation of market rules covering trading procedures, payments, transaction charges, dispute settlements, etc.

In an effort to get non-tariff barriers eliminated in the ongoing free trade agreement negotiations with the European Union, Indian negotiators have prepared an elaborate list of such roadblocks in key sectors such as pharma, engineering, electrical and agri items and have begun taking it up with their European counterparts, two people aware of the developed told The Indian Express.

 

This comes as India-EU concluded their seventh round of negotiations last month dealing with goods, services, market access, investment protection agreement (IPA) and a separate proposed pact on geographical indications (GIs). India and the EU had relaunched the negotiations in May 2021 after a gap of over nine years, at a time when western firms are looking at India as an alternate supply chain source to China.

 

The talks on non-tariff barriers (NTB) come in a backdrop of multiple environment and labour regulations brough by EU such as Carbon Border Adjustment Mechanism (CBAM) and Deforestation-free Regulation (EUDR) which is threatening to obstruct about 8 to 10 per cent of the Indian agri, steel and aluminum exports going into the 27-bloc union.

 

Barring Indian petroleum exports, India’s exports to EU- a key trading partner – have seen little gain over the last five years largely due to a slew of non-tariffs barriers in tea, agriculture, engineering and electronic items. While India has brought up the issues in negotiations, both parties continue to disagree on the definition of non-tariff barrier causing friction in the negotiations.

 

'The problem is that what we call the non-tariff barriers are referred to by them as non-tariff measures. They say that as a society we have high standards. Sometimes these standards are at par with the World Trade Organization (WTO) and sometimes they are WTO plus. They say that it’s an internal lookout that EU manufacturers are subjected to those high standards and are not meant to target India,' a senior government official said.

 

'We are not able to meet those standards and it is becoming a barrier to us. So the prism is changing. All that is required is standards and quality consciousness that needs to be there in India. But then comes the challenge of affordability. We are a developing nation with a large population and there is a cost associated with conformity to those high standards.That is the fundamental difference where per capita GDP comes into play. That is where they are able to use the deep pockets and insulate themselves, build and maintain those standards,' the official added.

 

The official further said that Indian chemicals and fertilizers face major disruption in exports because the domestic industry cannot match it and Indian consumers will not bear the high cost.

 

'Quality unfortunately [is a concern]..that is the reason why China was able to penetrate the Indian market because …their compliance level is high. So what you call an NTB is a major sticking point. It differs from one economy to another. That is a challenge that we are facing,' the official further added.

 

Council on Energy, Environment and Water (CEEW) in its report released last year said that the chemical exports from India were met with stringent regulations in the form of Registration,

Evaluation, Authorisation and Restriction of Chemicals (REACH), implemented by the European Union (EU) in 2007. The regulation resulted in approximately 40 per cent of exporters withdrawing from the market.

 

Moreover, India’s rice exports have suffered due to the imposition of maximum residue level (MRL) limits, which is the highest level of pesticide residue that is legally acceptable in or on food or feed when pesticides are applied following good agricultural practices. In 2017, the European Commission (EC) reduced the MRL limit for a fungicide used in rice cultivation, which led to a sharp drop in rice exports from India. India’s agriculture exports to the EU have declined in the last five years to $3.12 billion in FY23 from $3.36 billion in FY18.

 

'The European Union has got completely paranoid about maximum residue level (MRL). And they are actually using in the name of food safety, they are using pesticides and MRL laws as a non tariff trade barrier. So, they are setting laws for pesticide, but in the category of pesticide they are including naturally occurring pollutants and hydrocarbons which are in the environment, which are not being sprayed by anyone and they are putting limits for that under the pesticides category,' Chairman of Indian Tea Exporters Association (ITEA) Anshuman Kanoria told The Indian Express.

 

Notably, Indian tea export to Europe has slid to $166.08 million in FY23, down nearly 6 per cent from $176.47 million in FY18. Indian tea exports already face stiff competition from Sri Lanka and Africa who have been gaining market share globally.

 

'The other most important thing is they [European Union] has put Indian organic tea in a high risk category, because of which they are requiring a lot of testing and certification. The government is very keen to promote organic cultivation and export but the EU with its tough laws towards India is actually placing roadblocks to the cultivation and export of organic tea. We are losing the market because a lot of people are reluctant to export due to these laws. Lots of tea we know doesn’t pass the laws of tea anymore. Africa and Sri Lanka are exporting but India has its own market in the EU. And what these laws are doing is damaging the market of Indian tea in the EU completely,' Kanoria added.

 

'There are different kinds of market access barriers for example, the pharmaceutical sector faces the barrier of registration. The registration of drugs is taking enormous time in the European Union because of the huge influence the multinational drug companies have. Secondly, we have challenges in the electrical field, where standards different from what is globally followed is imposed. In agriculture, phytosanitary standards issue and traceability is an issue,' Ajay Sahai, Director General & CEO of the Federation of Indian Export Organisations (FIEO) said.

 

Sahai stressed that unless the issue of market access is addressed, the FTA will not make much headway because if the items are not freely allowed to be accessed in the country, there’s no point in having a tariff advantage. Globally, Indian exporters are also seeing that non trade issues are emerging and we feel that the environment and labor are the two non trade issues which are going to be extremely vital for global trade in this decade, Sahai added.

 

'Non trade issues are definitely emerging because probably the advanced economy feels that they have not much to restrict, either through the tariff or through the licensing and they want to regulate it through these non trade issues only,' he further said.

 

Indian textile exporters said that the problem with textile exports are not only the standards sought by the EU but also the private standards which differ from one multinational company to another. Notably, India’s textile exports to the EU have remained stagnant over the years. India’s textile exports in FY18 stood at $10.84 billion while in FY23 it fell to $10.48 billion.

 

'The problem in textile is the private standard issues which cannot be brought in negotiations. Each company in the EU has different standards that we need to meet. There are a slew of reporting requirements that are coming in which is becoming a market access issue for us,' Chandrima Chatterjee, Secretary General of Confederation of Indian Textile Industry (CITI) said.

 

Chatterjee added that the EU has increased reporting norms which are detailed in nature and are not easy to comply with without divulging sensitive information. She added that the government should bring in one reporting standard which the EU accepts.

Consumer Affairs, Food and Public Distribution Minister Piyush Goyal today stated that the agriculture sector will be the foundational pillar spearheading the nation towards becoming ‘Viksit Bharat’ by 2047. He was addressing the gathering at the launch ceremony of ‘e-Kisan Upaj Nidhi’ (Digital Gateway) of the Warehousing Development and Regulatory Authority (WDRA) in New Delhi. The Minister said that the ‘e-Kisan Upaj Nidhi’ initiative will ease the farmers’ warehousing logistics with the help of technology and aid the farmers in receiving fair prices for their produce. He said that the initiative with its simplified digital process can ease the procedure of farmers' storage at any registered WDRA warehouse.

 

Mr. Goyal announced that the security deposit charges at WDRA registered warehouses will soon be reduced to encourage more farmers, especially small farmers, to utilise the warehouses and enhance their income. He said that the farmers stocking their produce at these warehouses would need to pay only one percent security deposit instead of the earlier three percent. 

With the negotiations for the proposed India-UK free trade agreement (FTA) reaching the last leg, a British delegation is here to iron out differences on remaining issues, sources said. The chief negotiators of both countries may hold negotiations on issues such as goods, and services.

 

Sources said that issues such as the British demand for a cut in customs duties on electric vehicles may come up for discussion.

 

So far 13 rounds of talks have been completed. The 14th round was started in January.

 

Talks are also progressing on the proposed bilateral investment treaty (BIT). India and the UK launched the talks for a free-trade agreement (FTA) in January 2022.

 

There are 26 chapters in the agreement, which include goods, services, investments and intellectual property rights.

 

The Indian industry is demanding greater access for its skilled professionals from sectors like IT and healthcare in the UK market, besides market access for several goods at nil customs duty.

 

On the other hand, the UK is seeking a significant cut in import duties on goods such as scotch whiskey, electric vehicles, lamb meat, chocolates and certain confectionary items.

 

Britain is also looking for more opportunities for UK services in Indian markets in segments like telecommunications, legal and financial services (banking and insurance).

The government has, as part of India's outreach to the Global South, allowed the exports of 1,10,000 tonnes of rice to three African countries to help them meet their food security needs.

 

According to a notification issued by the Directorate General of Foreign Trade (DGFT), the export of 30,000 tonnes of non-basmati white rice has been allowed to Tanzania while 30,000 tonnes of broken rice have been permitted for export to Djibouti and 50,000 tonne to Guinea Bissau.

 

Though exports of non-basmati white rice have been banned since July 20, 2023 in order to ensure adequate domestic supplies and control inflation.

 

However, some exports are being allowed to friendly countries to ensure their food security which has been adversely impacted as supplies have been disrupted due to the ongoing Russia-Ukraine war.

 

The African countries had sought support from India to meet their needs as they were facing problems due to shortage of food supplies and runaway inflation in its wake.

The government has permitted exports of 64,400 tonnes of onion to the UAE and Bangladesh through the National Cooperative Exports Ltd (NCEL), according to notifications of the commerce ministry. While export of 50,000 tonnes of onion is permitted to Bangladesh, shipments of 14,400 tonnes were allowed to the UAE.

 

'Export of 14,400 tonnes of onions, with a quantity ceiling of 3,600 MT (metric tonnes) quarterly, to UAE through NCEL is notified,' the directorate general of foreign trade (DGFT) said in a notification.

 

DGFT is an arm of the commerce ministry, which deals with norms related to imports and exports.

 

For exports to Bangladesh, it said that the modalities for the exports will be worked out by the NCEL in consultation with the department of consumer affairs.

 

Though onion exports are banned, the government allows specified quantities to friendly nations.

 

The exports are allowed on the basis of permission granted by the government to other countries based on their request.

 

On December 8 last year, the government banned exports of onion till March 31 this year with a view to increase domestic availability and to keep prices in check.

 

Earlier, the Centre in October 2023 had decided to step up the sale of buffer onion stock at a subsidised rate of Rs 25 per kg in retail markets in order to provide relief to consumers.

 

To control prices, the government has earlier taken several steps. It had imposed a minimum export price (MEP) of USD 800 per tonne on onion exports on October 28 till December 31, 2023.

 

In August, India had imposed a 40 per cent export duty on onions up to December 31, 2023.

 

Between April 1, 2023 and August 4, 2023 this fiscal, 9.75 lakh tonnes of onions have been exported from the country. The top three importing countries in value terms are Bangladesh, Malaysia and the UAE.

 

Onion is a politically-sensitive commodity.

 

NCEL is a multi-state cooperative society. It is jointly promoted by some of the leading cooperative societies in the country, namely, Gujarat Cooperative Milk Marketing Federation (GCMMF), popularly known as AMUL; Indian Farmers Fertilizer Cooperative Ltd (IFFCO); Krishak Bharati Cooperative Ltd (KRIBHCO); and National Agricultural Cooperative Marketing Federation of India Ltd (NAFED).