India and Sri Lanka are set to take ongoing discussions on the Economic and Trade Cooperation Agreement (ETCA) forward, with the next two rounds of bilateral talks scheduled later this month and in March.

 

The progress in negotiations is significant for New Delhi and Colombo, as the much-discussed pact was stalled in the past, owing to stiff opposition from some worker unions and hardline Sinhala-nationalist politicians, who saw the agreement as favouring Indian interests predominantly, while endangering Sri Lankan labour. At least 11 rounds of discussions were held between 2016 and 2019, when the Maithripala Sirisena-Ranil Wickremesinghe administration was in power, but the two sides failed to reach an agreement amid protests in Sri Lanka.

 

President Ranil Wickremesinghe, who assumed charge in 2022 under extraordinary circumstances during the island’s economic crisis when a mass uprising ousted his predecessor Gotabaya Rajapaksa, has emphasised the need for trade pacts to aid the country’s economic recovery. Earlier this month, Sri Lanka inked a free trade pact with Thailand. India, followed by China, are the other two key partners with which Mr. Wickremesinghe is keen to have upgraded agreements, even as Sri Lankans reel under the painful aftermath of a financial meltdown.  

 

After talks on the stalled pact resumed under President Wickremesinghe last year, substantial discussions have been held. The Sri Lankan government sees the resumption of ETCA negotiations as 'a significant step towards strengthening the economic partnership between Sri Lanka and India.'  

 

According to an official update issued after the Sri Lankan Cabinet met on Monday, the 13th round of discussions on the proposed ETCA was held in New Delhi for ten days beginning January 8, 2024. Nine sub – committees tasked with looking into various aspects such as goods trade, service trade, rules of the origin and customs procedure and easing the trade held deliberations.

 

Official sources familiar with the negotiations told The Hindu that the two sides are exploring ways of linking service trade to investments to ensure there is no threat to local labour. 'Free movement of individual professionals is not anticipated in the agreement,' a senior official said. Mr. Wickremesinghe on Monday briefed his Cabinet on the talks, and the 14th round of discussions of the proposed agreement is scheduled to be held on the first week of March 2024, the official press release said.

 

India and Sri Lanka first signed a free trade agreement in 1998. While the two sides have since attempted to upgrade it multiple times, the attempts proved unsuccessful. New Delhi and Colombo discussed a ‘Comprehensive Economic Partnership Agreement (CEPA)’ with former President Mahinda Rajapaksa’s government, but his administration saw the agreement as being redundant at the time.  

 

Now, as both India and Sri Lanka prepare for an election year — Sri Lanka is scheduled to hold Presidential polls later this year — officials and Colombo and New Delhi are keen to seal the pact before that, sources said.

India has extended the timeline for duty-free imports of yellow peas by a month through April, 2024, an official gazette notification said. In early December, the central government allowed duty-free imports of yellow peas until March 2024. It was part of New Delhi's intervention to cool the prices of the overall pulse basket.

 

Reportedly, the duty on yellow peas was first implemented in November 2017 at 50 per cent. India largely imports yellow peas from Canada and Russia. India is a large consumer and grower of pulses and it meets a portion of its consumption needs through imports. India primarily consumes chana, Masur, urad, Kabuli chana, and tur.

 

As part of centre's invervention, it had in September extended stock limits on tur and urad dal by two months until December 31, besides revising the stock holding limits for certain stakeholders. Earlier, the stock limits on these two varieties of pulses were to end on October 30.

 

As per a notification issued then, the limit for stock with wholesalers and also big chain retailers at the depot was reduced from 200 MT to 50 MT, and the limit for millers was reduced from the last three months' production or 25 per cent of annual capacity, whichever is higher to last 1-month production or 10 per cent of annual capacity, whichever is higher.

 

The Ministry of Consumer Affairs, Food and Public Distribution had maintained the revision in stock limits and extension of the time period is to prevent hoarding and elicit the continuous release of tur and urad in sufficient quantities to the market and make the pulses available at affordable prices.

 

NABARD, in collaboration with various stakeholders, hosted an investors' meet at Naya Raipur to promote the central government’s Food Processing Fund aimed at boosting the food processing sector in Chhattisgarh.

The investors' meet, a collaborative effort led by the National Bank for Agriculture and Rural Development (NABARD), saw the participation of various stakeholders, including top officials of the state's industry department, representatives of chambers of commerce and industries, and food processing industries.

 

NABARD's chief general manager, Dr Gyanendra Mani, highlighted NABARD's pivotal role in agricultural and rural development, emphasizing its efforts in fostering the food and agro-processing sector. He shed light on the potential within the sector and highlighted the operational success of the Indus Best Mega Food Park, a venture supported by NABARD. Dr Mani encouraged stakeholders to contribute their insights towards shaping policies conducive to sectoral growth.

The general manager of CSIDC, O P Banjare, commended the supportive measures offered by the Government of Chhattisgarh and expressed satisfaction with the fully operational Mega Food Park in Tilda, Raipur. Chairman of the PHD Chamber of Commerce and Industry, Shankar Bajaj, acknowledged NABARD's initiative in organizing the awareness meet, underscoring the critical role of the industry sector in Chhattisgarh's economic landscape.

 

Participants unanimously acknowledged the abundant potential within Chhattisgarh's food and agro-processing sector, advocating for initiatives aimed at export promotion and the establishment of ancillary industries, as per a NABARD release.

The release stated that dignitaries shared their experiences in establishing industrial ventures, particularly food parks and agro-processing units in Chhattisgarh. They articulated their expectations for favourable policy interventions from both state and central governments to bolster the sector's growth trajectory. Participants expressed keen interest in establishing food processing units within the Indus Best Mega Food Park, signalling optimism for the sector's future prospects.

 

Expo by TSIC and NABARD concludes

A three-day agri-innovation exhibition, One District One Exhibition (ODOE) program concluded in Hyderabad with over 4,000 participants. The program unfolded in Bhadradri Kothagudem, Mahbubnagar, and Nizamabad, providing farmers with well-equipped innovations sponsored by NABARD, aimed at creating a market for grassroots innovations with different reach, clientele, manufacturing, marketing, and value chain development.

Nyota Bhojan Initiative: Raipur Collector first in state to host feast for schoolchildren, emphasizing community participation

Raipur Collector Dr. Gaurav Kumar Singh hosted a feast for schoolchildren at the Government Primary School in the Dharampura area of the state capital. The Chief Minister suggested spending time with schoolchildren on their birthdays. The initiative was undertaken in Chhattisgarh under the direction of the Chief Minister. The menu was prepared based on students' preferences.

Investigation ordered into Rural Industrial Park investment; audit to follow

Deputy Chief Minister Vijay Sharma announced a committee to investigate the investment in Rural Industrial Park (RIPA) in Chhattisgarh. An audit will be conducted by the AG office. BJP MLA raised funding questions. Investigation focuses on irregularities, inspections of RIPA centers, and disbursed amount of Rs 260.1 crore.'

In a pioneering move, the Agricultural and Processed Food Products Export Development Authority (APEDA), in partnership with the Central Institute for Subtropical Horticulture (CISH), is gearing up for trial sea shipments of mangoes and pomegranates to the US and the European Union. This initiative, aimed at slashing the transportation expenses involved in exporting fresh fruits, follows the successful sea conveyance of bananas to the Netherlands and Russia, marking a significant advancement in the exportation of perishables.

 

APEDA's collaboration with CISH on developing sea protocols is a strategic effort to streamline the export process, ensuring the efficient transport of fresh produce to distant markets while minimizing logistics costs. This initiative is expected to catalyze a substantial increase in the export volumes of not just mangoes and pomegranates, but also other fresh fruits and vegetables, thereby bolstering India's footprint in the global market. Furthermore, APEDA's commitment to expanding its export portfolio to over 203 countries/territories is evident from its promotion of the One District One Product (ODOP) scheme and Geographical Indication (GI) products, alongside tapping into non-traditional areas for sourcing exports.

 

With more than 27 new product flag offs in the current financial year, ranging from guava and banana to marigold flowers and water chestnuts, APEDA is actively diversifying its export basket. These products, destined for the Gulf countries, Europe, and the US, underscore APEDA's role in enhancing the capacity of Farmer Producer Organizations (FPOs), thereby enabling direct exports and strengthening India's agricultural presence internationally.

Deputy Foreign Minister of Norway, Andreas Kravik, shared insights on various global and bilateral matters, emphasising the imminent conclusion of a Free Trade Agreement (FTA) between India and the European Free Trade Association (EFTA).

 

He also spoke about Afghanistan, the Russia-Ukraine conflict, maritime security issues, and notably, his views on former US President Donald Trump's stance on NATO.

 

FREE TRADE AGREEMENT WITH INDIA

In an exclusive conversation with India Today TV, Kravik expressed optimism about finalising the FTA with India 'in the very near future,' highlighting the progress in negotiations despite the impending code of conduct for general elections in India.

 

'We are very hopeful that we will be concluding the free trade agreement with India in the very near future,' Kravik stated, acknowledging that while 'certain things need to be polished,' the process is moving positively forward.

 

The agreement, under discussion since 2008, involves EFTA countries—Switzerland, Iceland, Liechtenstein, and Norway—eyeing to invest up to $100 billion over 15 years for market access in India.

 

This ambitious initiative aims at enhancing bilateral trade, with specific focus on patent protection, investment promotion, and addressing contentious issues like regulatory data protection for pharmaceuticals.

 

The 21st round of discussions, held in Delhi from January 8 to 13, 2024, tackled critical areas including trade in services, rules of origin, and intellectual property rights, marking significant headway towards mutual economic benefits.

 

AFGHANISTAN AND HUMAN RIGHTS

 

Kravik also shed light on Norway's stance on Afghanistan, emphasising a balanced approach towards engaging the Taliban while advocating for human rights, especially women's rights.

 

'We have a multifaceted approach to Afghanistan and de facto authorities,' he remarked, underscoring the importance of engagement for any progress.

 

Despite the challenges, Norway remains committed to advocating for human rights and opening dialogues for better relations between the international community and the Taliban.

 

RUSSIA-UKRAINE CONFLICT AND NATO

On the Russia-Ukraine conflict, Kravik reiterated Norway's support for Ukraine and the critical role of NATO in defending international law and sovereignty principles.

 

'We have been adamant in our support. We have a financial commitment to Ukraine. We have a military commitment to Ukraine in the form of supplying weaponry,' he said, emphasising NATO's unified stance against Russia's violation of international law.

 

He said, 'Well, to begin with the conflict, or the war, we have been crystal clear since the start that what Russia did was a violation, or is still doing, is a violation of international law. Ukraine is fighting for its existence and that is something that we support. We have been adamant in our support. We have a financial commitment to Ukraine.'

 

'We have a military commitment to Ukraine in the form of supplying weaponry and so forth. They are defending themselves and NATO is critical in that effort,' he added.

 

Regarding Trump's stance on NATO, Kravik conveyed confidence in the alliance's resilience, even under a potential Trump presidency.

 

'We are comfortable in this infrastructure, in the NATO infrastructure remaining intact also under a potential US or Trump presidency,' he assured, highlighting the collective support within the alliance for its defence agreement.

 

Despite previous statements by Trump, Kravik expressed certainty in the continued U.S. commitment to NATO principles, reflecting a trust in the enduring nature of these international relationships.

 

'There is a shared collective support within the alliance for this collective defence agreement that NATO is symbolic of and that is something that we think will be continued by any US president. Of course we have seen and heard some of the statements by former President Trump but there is an election transpiring and we know how these things are and we are certain that once the elections have been conducted,' he said.

 

Former US President Donald Trump, eyeing the Republican presidential nomination, has reignited concerns with his provocative stance on NATO, the North Atlantic Treaty Organization.

 

Trump's recent comments suggest a radical departure from the alliance's foundational principle of collective defence, alarming international observers and allies alike.

 

At a campaign rally in South Carolina, Trump recounted a purported interaction with a head of state during an unspecified NATO meeting. According to Trump, when asked whether the US would protect a NATO member state that had not met its defence spending obligations and was under attack by Russia, he responded negatively.

 

'You didn’t pay, you’re delinquent? No, I would not protect you. In fact, I would encourage them to do whatever the hell they want. You got to pay. You got to pay your bills,' Trump declared.

 

This statement starkly contrasts with the NATO treaty's Article 5, which commits member states to mutual defence in the event of an armed attack against any member.

 

Although the treaty encourages members to aim to spend 2 per cent of their GDP on defence—a benchmark that many members do not consistently achieve—Trump's comments suggest he views this financial commitment as a precondition for the US's fulfillment of its treaty obligations. This interpretation challenges the very spirit of collective defence that has underpinned NATO's success as a military.

 

MARITIME SECURITY AND ISRAEL-HAMAS WAR

 

Addressing maritime security, Kravik condemned attacks against civilians and vessels in the Red Sea, stressing the urgency of a ceasefire in the Gaza Strip. Norway's commitment to securing maritime corridors and advocating for a two-state solution highlights its dedication to international peace and security.

 

'When it comes to the Red Sea and the attacks that we have seen against civilians and vessels, that is completely intolerable and something that we have been condemning in the strongest terms,' Kravik said.

 

'We have communicated and condemned this directly to the Houthis and said this is not something that is tolerable and something that has to be condemned by us, by the international community. We have dedicated personnel and also resources to various operations that are active in terms of combating and at least preventing some of these things from attacks from occurring,' he added.

 

Kravik emphasised the tie-in to the Gaza conflict, urging a ceasefire in Gaza due to the unacceptable civilian suffering. He expressed hope for a ceasefire to facilitate humanitarian assistance, constructive dialogue, and progress towards a two-state solution ensuring Palestinian sovereignty and Israeli security.

 

The Deputy Foreign Minister spoke on the sidelines of the Raisina Dialogue held in New Delhi, underscoring Norway's proactive role in fostering global cooperation, advocating for human rights, and supporting international law amidst complex geopolitical landscapes.

In the second visit by a provincial leader this month, the Premier of Saskatchewan Scott Moe arrived in New Delhi on Tuesday.

 

In a release on Tuesday, his office said, 'Today, Premier Scott Moe is leading a delegation to India to maintain and grow trade opportunities, increase investment attraction, and showcase Saskatchewan’s capacity to foster food and energy security goals.'

 

Among his first engagements was a meeting with India’s External Affairs Minister S Jaishankar, who posted on X that he appreciated Moe’s 'strong support for our partnership and looking forward to deepening our cooperation'.

 

After his arrival, Moe posted, 'Saskatchewan is an exporting province and thousands of SK jobs depend on strong export markets. In 2023, SK exports to India totalled over $1.3 billion. My job as Premier is to ensure we maintain and expand those markets and protect the thousands of SK jobs that rely on exports. That’s why I’m in India this week.'

 

In the release, he said, 'This is an important mission for Saskatchewan as we continue to build relationships with India. We have built strong relationships over a number of decades which has been crucial to building opportunities and protecting communities and jobs back home.'

 

Among his engagements will be featuring as a speaker at the Raisina Dialogue, which is organised by Observer Research Foundation in association with the Ministry of External Affairs. Moe will be speaking about Saskatchewan’s sustainable agriculture practices and reliable supply chain. He will be in India till February 24.

 

The province’s top five exports to India include lentils, potash, wood pulp, peas and non-durum wheat. Saskatchewan is India’s largest exporter of key products including potash and lentils.

 

His visit comes days after a week-long 'sales mission' by Ontario’s Minister of Economic Development, Job Creation and Trade Victor Fedeli to India, with events in Mumbai and Bengaluru.

 

That was the first by a prominent Canadian leader to India since bilateral tensions erupted in September over the killing of pro-Khalistan figure Hardeep Singh Nijjar on June 18 in Surrey, British Columbia. Negotiations over an Early Progress Trade Agreement (EPTA) between India and Canada were paused in late August, days prior to Canadian Prime Minister Justin Trudeau’s statement in the House of Commons that there were 'credible allegations' of a potential link between Indian agents and Nijjar’s killing. While engagement at the Federal level has not resumed, sub-national contacts appear to have with the visits by Fedeli and Moe.

The FSSAI has decided to allow  manufacturers to use the word 'ORS' as trademark on their products label after the Office of Comptroller General of Patents Designs and Trade Marks has ruled that it was in accordance to the Section 17 of Trademarks Act of 1999.

 

After receiving complaints about many food companies selling products named as ORS, which is also a drug formulation approved by the WHO, the FSSAI had ordered on July 14, 2022, allowing those FBOs having valid trademarks for the product names similar to ORS' to manufacture such products under their respective trademarked names till the decision of the Office of the Comptroller General of Patents Designs and Trade Marks (CGPDTM) was received, which shall be binding and final on all such FBOs.

 

Now after the order by the CGPDTM arrived, the manufacturers are allowed to manufacture such products but with a condition that they have to provide a prominent declaration on front of the pack that this product is not an ORS formula as recommended by the WHO.

 

The font size of the disclaimer should not be less than 1.5mm per 100sqcm, 2mm for 100-200sqcm and 3mm for principal display area above 200sqcm.

 

Also, the FBOs can add info about the product in accordance with the advertising and claims regulations that 'This is only a brand name or trademark, or fancy name and does not represent its true nature; (relevant one may be chosen as applicable)' in specified font size mentioned under the said proviso.

In a significant move aimed at enhancing trade relations with the USA, the Indian government has announced key revisions in import duties. The Finance Ministry has declared a full exemption from customs duty on the import of extra-long staple cotton. Additionally, duties on specific varieties of imported blueberries, cranberries, and frozen turkeys have been reduced.

 

According to a recent notification from the Finance Ministry, the import duty on certain blueberries and cranberries has been reduced from 30% to 10% in some cases and to 5% in others. Similarly, import duties on meat and edible offal of turkeys have been slashed from 30% to 5%, effective immediately.

 

These changes follow a recommendation from the Department of Commerce, stemming from a mutually agreed solution between India and the US. This move is in line with the bilateral agreement reached during the recent G20 Leaders' Summit, intending to address past disputes and foster smoother trade relations.

 

Khushbu Trivedi, Associate Director- Indirect Tax at Nangia Andersen India, highlighted the proactive nature of the government's decision, emphasizing its potential benefits for both nations and other WTO members. Trivedi explained that reducing duties on niche items, scarcely produced in India, would aid the USA in penetrating the Indian market while lowering prices for consumers.

 

In response to concerns raised by the cotton industry, the Ministry has also abolished import duty on specific types of cotton, exceeding a staple length of 32mm. Trivedi lauded this decision as reflective of the government's responsiveness to industry feedback and its commitment to adapting import regulations to benefit stakeholders in the cotton sector.

 

These duty revisions signal a concerted effort by the Indian government to foster mutually beneficial trade relationships, address industry concerns, and promote economic cooperation with global partners.

The government is hopeful that it will be able to supply onion and sugar, imported from India, to the market before the month of Ramadan, said State Minister for Commerce Ahasanul Islam Titu today.

 

'We have already submitted a proposal to import 50,000 metric tonnes of onions and one lakh metric tonnes of sugar from India. They have assured us of providing about 20,000 metric tonnes of onions and 50,000 metric tonnes of sugar. However, we remain hopeful that we will be able to import the products according to our demand,' he said while talking to reporters at the Secretariat.

 

We will get good news over it within Thursday, he added.

 

Besides, the government is trying to import daily essentials from other neighbouring countries, he said.

 

A meeting of the task force committee will be held on Tuesday, said the junior minister, adding that the price of edible oil is expected to be refixed in the meeting.

 

The government will ensure market monitoring at the field level during Ramadan and after fixing the price of edible oil it will take measures so that oil prices remain stable, he added.

Amid the rise in rice prices, the Union government has extended the 20 per cent export duty on parboiled rice indefinitely. It has also decided to allow the zero-duty import regime for yellow peas, subject to the Bill of Lading issued on or before April 30, 2024.

 

The 20 per cent duty on parboiled rice was set to expire on March 31, 2024. The Finance Ministry notified the decision after the Committee of Ministers, headed by Cooperation Minister Amit Shah, approved the proposal, mooted by the Consumer Affairs and Food Ministry, sources said.

 

Official data show that the pan India average retail prices of rice increased to Rs.44.11/kg (0.34 per cent) in a week as of February 20 while its wholesale prices went up to Rs.3,876/quintal (0.07 per cent) . But rice inflation is higher year-on-year – 15 per cent in retail and wholesale as of February 20.

 

Measures to curb inflation

The government has taken several measures, including a weekly auction of rice from Central Pool stocks and retail sales at a subsidised rate of Rs.290/10 kg bag to reduce inflation.

 

The export of parboiled non-Basmati rice was 58 lakh tonnes (lt) between April 2023 and January 24, 2024, as against 62 lt in the year-ago period. India has also exported 21 lt of raw non-Basmati rice under government-to-government request, as against 50 lt in the year-ago period.

 

India began to curb rice exports in September 2022, when it first banned shipments of broken rice and imposed a duty on white rice consignments. In June 2023, it banned exports of white rice and later imposed a 20 per cent duty on parboiled rice.

 

Despite the curbs, India topped rice exports in 2023, with 16.5 million tonnes being shipped out of the country. This included basmati rice, estimated to have made up about 4 million tonnes.

 

According to the Agricultural and Processed Food Products Export Development Authority (APEDA), non-basmati rice exports during April-December 2023 dropped by 28 per cent to 8.34 mt valued at $3.34 billion against 13.18 mt valued at $4.66 billion. Basmati exports during the same period were up 19 per cent at 3.97 mt valued at $3.97 billion against 3.20 mt valued at $3.34 billion.

 

The measures were undertaken in 2022 when paddy-growing areas in the eastern region received deficient rains due to the impact of the southwest monsoon. The shortage was, however, made up in the rabi sowing.

 

In 2023, kharif paddy was affected by a deficient southwest monsoon. This resulted in the Centre banning exports of white rice, imposing an export duty on parboiled rice and fixing $950/tonne as the minimum export price for basmati rice.

 

The Ministry of Agriculture and Farmers Welfare has estimated that 2023 kharif rice production will be 3.8 per cent lower at 106.31 mt against 110.51 mt in 2022. The decision was made to curb rising food prices, too.