The Centre warned the industry that it may impose a price cap on imported tur dal to keep domestic prices in control as it is concerned about monopoly suppliers Myanmar and Mozambique.

 

In a meeting held with the pulses industry and trade representatives on Monday, consumer affairs secretary Rohit Kumar Singh warned the industry of tough action. 'The government is very upset about the strong bullish trend in tur prices. It is also concerned about the bullying by exporting countries like Myanmar and Mozambique,' said an importer from Tamil Nadu, who did not wish to be identified.

 

Wholesale prices of whole unprocessed tur had fallen to Rs.85-90 a kg in December 2023 from last year's high of Rs 120 when the old stock was over and new crop was yet to be harvested. However, they have again increased to Rs.103-105.

 

Industry representatives said challenges in imposing a maximum import price (MIP) include the possibility of a fall in imports. 'Our vessels of tur purchased at $1,000 per tonne from Africa are already on the way to India. If the government keeps the MIP for Africa lower than $1,000 per tonne, then we are bound to incur losses,' a Mumbai-based importer said on condition of anonymity.

 

'However, it has become clear we could import only 13,000 tonnes of tur in January this year, which indicates that Myanmar traders are hoarding the crop,' said the Mumbai-based trader cited earlier.

 

India and the European Union, both have the political will to conclude the Free Trade Agreement (FTA) and while no timeline can be put on the conclusion of the deal negotiations are progressing well, European External Action Service Secretary General Stefano Sannino told ET on Wednesday.

 

'As we speak, the seventh round of negotiations is ongoing in New Delhi. It is an ambitious agreement and there are various elements to the FTA. While no timeline can be put as to when the FTA can be announced, I can say that there is a political will to conclude it,' Sannino said in an exclusive chat on the sidelines of the Raisina Dialogue – India’s premier foreign policy dialogue organised by the MEA and Observer Research Foundation (ORF).

 

Along with FTA talks, India-EU will also discuss an investment protection agreement (IPA) and a pact on geographical indications (GIs).

 

The sixth round of India-EU FTA trade negotiations comprised 71 technical sessions covering 18 of the 23 policy areas and chapters. These talks were held in person and virtually.

 

The proposed trade deal with the EU is one of the most complex FTAs being negotiated by India. While there is interest on both sides to take forward the deal, a breakthrough is unlikely before the general elections in India and European Parliament polls this year.

 

Sannino who is India’s equivalent to the Foreign Secretary also mentioned about a new area of cooperation between EU and India – defence. 'I had a meeting with the Ministry of Defence today (Wednesday) and both sides are discussing ideas to cooperate in the defence sector including cyber security. There are plans to have an Indian Defence Minister in Brussels in future.'

 

The proposed partnership in the defence sector is an extension of India-EU security partnership, Sannino said, adding, India-EU security partnership besides counter-terrorism is focusing on maritime security and Freedom of Navigation.

The proposed India-Oman Free Trade Agreement (FTA), which will boost India’s exports of several items ranging from electronics to textiles and also strengthen its economic and strategic foothold in West Asia, is ready to be signed once the process of legal scrubbing is done, sources have said.

 

'All issues pertaining to the India-Oman FTA have been sorted out and settled and the pact is almost ready to be signed. Only the legal scrubbing of the document remains which is happening right now. Following that, the top leadership will take a call on its announcement, which can also be done through a virtual event if required,' a source tracking the matter told businessline. The attempt is to sign the pact before India’s general elections, expected to be announced soon, the source added.

 

The pact, officially known as the India-Oman Comprehensive Economic Partnership Agreement (CEPA), is important for India. Oman ranks as the third-largest export market within the Gulf Cooperation Council (GCC) nations and bilateral trade has grown fast and steady.

 

India-Oman trade increased to $12.39 billion in 2022-23 from $5.4 billion in 2020-21. India’s exports were at $4.48 billion in 2022-23, while imports were at around$8 billion.

 

There is a huge potential for further growth as over 80 per cent of India’s exports to the country face a duty of 5 per cent, which can be brought down once the CEPA is in place, according to research body GTRI.

 

Export items that could benefit from duty cuts include motor gasoline, iron, steel and products, electronics, machinery, aluminium oxide, textiles and garments, boneless meat, essential oils, ferro silico manganese, and motor cars ($ 28 million), per the report.

 

India’s merchandise imports from Oman, which mostly comprise petroleum products and urea, but also include items like propylene and ethylene polymers, pet coke, gypsum, organic and inorganic chemicals, iron and steel and unwrought aluminium, also stand to benefit.

 

'As both sides are gaining from the FTA, negotiations progressed very fast. The formal talks began in November 2023 and many issues were settled in the first two rounds itself that were held close to each other,' the source said.

 

Oman’s ruler, Sultan Haitam bin Tarik’s state visit in December 2023 further pushed the negotiations. 'The two leaders adopted the `India-Oman Joint Vision: A partnership for future’ which complemented the proposed CEPA,' an industry source pointed out.

 

The Commerce Department then sought further inputs from the industry for the last lap of the negotiations in January 2024, following which the deal was sealed, the source added.

 

Apart from economic benefits, the proposed India-Oman FTA could also result in strategic gains for India as Oman is an important member of the GCC, with which India is yet to sign an FTA, and the pact could help it cement its relationship with the Middle East region.

Commerce and Industry Minister Piyush Goyal on Wednesday said India negotiates trade and investment agreements with fairness and open mind and takes care of the interest of people. He also said countries that are negotiating Free Trade Agreements (FTAs) and investment pacts with India should keep in mind that New Delhi offers a huge market to them in terms of demand and business opportunities.

 

'I can assure you that India negotiates with fairness, with an open mind... India also takes care of its wider and larger interest in the long run,' he said at the CII India-Europe conclave.

 

FTAs or Bilateral Investment Treaties (BITs), or agreements on geographical indications, will have to stand the test of fair, equitable, and balanced agreements as the level of economic developments varies, he said.

'We will have to respect the very different opportunities that are offered by India vis-a-vis the offer on the table from other countries,' he said, adding that India is one of the fastest growing economies of the world.

 

The young population, demand for goods and services, opens up huge opportunities for businesses across the globe, the minister added.

 

The remarks assume significance as India is negotiating such agreements with countries such as the UK, Oman, and the European Union.

 

Speaking at the conclave, the UK's minister Lord Ahmad of Wimbledon said that British businesses are major investors in India and bilateral trade is growing between the two countries.

 

He also said the two nations are working on an ambitious free trade agreement and bilateral investment treaty.

 

'This will boost our trading partnership further... and (would) show the world that India and the UK are serious about trade and very much committed to prosperity at a global level,' Ahmad said adding huge business opportunities are there for Indian firms in the UK.

 

With the negotiations for the proposed India-UK free trade agreement reaching its last leg, a high-level Indian official delegation is in London to iron out the differences on remaining issues.

 

India and the UK launched the talks for a FTA in January 2022. There are 26 chapters in the agreement, which include goods, services, investments and intellectual property rights.

 

The bilateral trade between India and the UK increased to USD 20.36 billion in 2022-23 from USD 17.5 billion in 2021-22.

 

Tobias Lindner, Minister of State at the Federal Foreign Office, Germany, said the India-EU free trade agreement holds immense potential to amplify trade and foster trade-economic integration.

 

He added that the agreement would benefit private sector investments in Indian manufacturing and services sectors and provide access to Indian businesses to the world's largest single market.

 

The seventh round of India-European Union talks is underway here.

 

In June 2022, India and the EU restarted the negotiations for the long-pending trade and investment agreement after a gap of over eight years.

Agricultural and Processed Food Products Export Development Authority (APEDA) has been actively engaged in boosting the export of its Scheduled products to newer destinations, marking a significant step in diversifying India's agricultural export portfolio. With a targeted approach, APEDA is amplifying its efforts towards promoting products under the One District One Product (ODOP) and Geographical Indication (GI) categories while sourcing exports from non-traditional areas/states.

 

Expanding Export Footprint

As of the latest data, APEDA's scheduled products have found their way into markets spanning over 203 countries/territories worldwide, indicating a substantial global presence. APEDA has coordinated more than 27 flag-offs of export shipments in the current fiscal year in an effort to expand its reach even further. This is an example of the organization's proactive strategy to developing trade ties and breaking into new markets.

 

Capacity Building and Market Access

In a concerted effort to empower Farmer Producer Organizations (FPOs), APEDA is actively involved in capacity-building initiatives recognizing them as vital stakeholders in the agricultural supply chain. By providing tailored support and guidance, APEDA has facilitated the transformation of 119 FPOs/FPCs into exporters over five years. This strategic move not only strengthens the position of FPOs in the export landscape but also ensures efficient market access for farmers, thus fostering sustainable agricultural practices.

 

Proactive Export Initiatives

In collaboration with the Central Institute for Subtropical Horticulture (CISH), APEDA has embarked on a proactive initiative to develop sea protocols customized for the export of fresh produce to distant markets. This initiative is set to optimize the export process for promising fresh fruits, aiming to streamline transportation logistics and reduce associated costs.

 

As part of the pilot program, trial shipments of mangoes and pomegranates to the USA and the European Union are underway, showcasing India's commitment to meeting stringent international quality standards. Noteworthy achievements include the successful shipment of bananas to the Netherlands and Russia via sea routes, underscoring the efficacy of the sea protocols in facilitating exports of perishable items.

India is making a  remarkable presence at Gulfood 2024 in Dubai, UAE,  as over 350 Indian companies gathered to showcase their diverse array of products. This unprecedented turnout underscores India's burgeoning role as a global leader in the food supply industry.  For years, India has been a trusted supplier of various food items to the United Arab Emirates, including grains, cereals, pulses, and more. Now, with such a massive presence at Gulfood, India is not just showcasing its culinary prowess but also exploring new avenues for trade in the UAE and beyond.

 

At the heart of India's representation is the Agricultural and Processed Food Products Export Development Authority, whose pavilion boasts over 70 exhibitors, from startups to MSMEs, offering a glimpse into India's diverse culinary landscape. The UAE has become India's third-largest trading partner, thanks to the surge in food exports, fuelled by recent agreements like the Comprehensive Economic Partnership Agreement, which has boosted trade by 16% in just one year.From fragrant spices to wholesome grains, India's offerings cater to a wide range of tastes in the UAE, paving the way for further growth in the domestic food industry, projected to hit $620 billion by 2029.

 

Looking ahead, India's domestic food industry is poised for substantial growth, projected to reach an impressive $620 billion by 2029. The Middle East, with its increasing appetite for Indian flavors, presents a lucrative opportunity for exporters. As the primary food exporter to the Arab League, India is solidifying its position on the global culinary stage. 

 

As Gulfood continues, it serves as a crucial platform for Indian businesses to connect, explore new markets, and forge partnerships. From industry giants to innovative startups, the event promises exciting opportunities in the ever-evolving global food sector.The world’s largest annual gathering for food and beverage sourcing worldwide, Gulfood offers a window into the global food sector’s vast and diverse offerings - from future-shaping F&B innovations to superfoods that are redefining our plates and palates. The fair commenced on February 19th and will conclude on the 23rd.

India's rapeseed and mustard output is likely to reach a record high in 2024 due to an expansion in the planted area and favourable weather conditions in key producing states, industry officials said.

 

Higher rapeseed output will help the world's biggest vegetable oil importer to cut back on expensive imports of palm oil, soyoil and sunflower oil.

 

'Farmers have expanded area under rapeseed. Our recent survey is showing the crop is in good condition in almost all states,' B.V. Mehta, executive director of Solvent Extractors' Association of India, told Reuters.

 

Area under rapeseed has risen by around 5% from a year ago to 10 million hectares, Mehta added.

 

India produced 11.5 million metric tons of rapeseed in 2022/23 and in the current year production could rise by 300,000 to 500,000 tons industry officials said.

 

'The crop is in excellent condition. If things keep rolling smoothly in the next couple of weeks, production of 12 million tons is possible,' said Anil Chatar, a trader based in Jaipur in the north-western state of Rajasthan, the biggest producing state in the country.

 

HEAT WAVE CONCERN

Until last week, the weather was favourable but temperatures have started to rise, raising fears of a heatwave that could lead to the early maturity of crops and reduce the size of the seeds, said a New Delhi-based dealer with a global trade house.

 

In the past, higher temperatures in February and March have dashed prospects of high yields, he said.

 

In some districts of Rajasthan, the maximum temperature this week was nearly 6 degrees Celsius above normal, data from the weather department showed.

 

New season supplies would pick up from the next month, said Chatar. Rapeseed prices are trading below the government-fixed floor price of 5,650 rupees per 100 kg, and they could fall further unless the government ramps up procurement, he said.

 

India meets more than 70% of its cooking oil demand through imports of palm oil, soybean oil, and sunflower oil from Malaysia, Indonesia, Brazil, Argentina, Ukraine, and Russia.

 

Rapeseed crushing would pick up from April, and higher supplies of oil would limit imports of vegetable oils, the New Delhi-based dealer said.

An Indian government delegation has visited Singapore to bolster trade relations and attract investment to the country.

The delegation, led by Department for Promotion of Industry and Internal Trade (DPIIT) Secretary Rajesh Kumar Singh, engaged in productive discussions with high-ranking government officials in Singapore and participated in investor roundtables on Monday.

Singh also addressed the “India-Singapore Trade Roundtable” on the Food and Machinery Sector, organised by the Federation of Indian Chambers of Commerce & Industry (FICCI) and the High Commission of India in Singapore, in partnership with the Singapore Business Federation.

The event served as a platform for Indian and Singaporean businesses to explore avenues for enhancing trade, joint ventures, technology exchanges, and partnerships, a FICCI official said on Tuesday.

The visit of the delegation was aimed at inviting investors to India and enhancing trade ties between India and Singapore, the official said.

Singh also met Beh Swan Gim, Singapore’s Trade and Industry Ministry Permanent Secretary during which they emphasised on the importance of bilateral relations between the two nations.

The delegation also attended the Investors roundtable on Renewable Energy and Electronics and Semiconductors. These sessions, organised by Enterprise Singapore and Invest India, opened dialogues with business leaders on the potential for deepening investment ties and collaborative ventures between the two nations.

Singapore is India’s 8th largest trade partner. According to the Indian High Commission in Singapore, in the year 2022-23, the bilateral trade reached USD 35.59 billion, registering a growth of 18 per cent over 2021-22. 

Agricultural and Processed Food Products Export Development Authority (APEDA) has taken a number of steps to ensure that more and more of its Scheduled products are exported to newer destinations. In this regard special emphasis is towards the ODOP and GI products, and also to source these exports from non-traditional areas/states. As on date, APEDA scheduled products are being exported to more than 203 countries/territories, worldwide. To give this a further fillip, more than 27 flag offs were organised in the current financial year. Some of the notable new flagoffs of export shipments were:

Product	Origin	Export destination
Guava	Baramati, Maharashtra	UAE
Bananas	Baramati, Maharashtra	Netherlands, Saudi Arabia, Russia
Potatoes	Purvanchal	UAE
Khasi Mandarin Orange	Meghalaya	Dubai
Colocasia	Pakur, Jharkhand	Singapore
Assam Flat Beans and Lemon	Assam	London
Water chestnuts	Varanasi	UAE
Marigold	Varanasi	Sharjah
Cashew nut	Odisha	Bangladesh, Qatar, Malaysia, USA
Fresh vegetables	Uttarakhand	Kingdom of Bahrain
Pongal Hamper	Nilakottai, TN	Abu Dhabi
Lemon, Mango and Mixed pickles	Karnataka	UAE
Millets	Punjab	Australia

APEDA is also actively involved in capacity building initiatives for FPOs as they are increasingly recognized as essential aggregators of farm produce, pivotal in streamlining the supply chain and ensuring efficient market access for farmers. With a focus on enabling direct exports, APEDA has transformed 119 FPOs/FPCs into exporters over a period of five years. Through tailored support and guidance, these FPOs have enhanced their capabilities to navigate global markets, amplifying the presence of Indian agricultural products on the international stage.

 

The agri-export promotion body in collaboration with the Central Institute for Subtropical Horticulture (CISH), has embarked on a proactive initiative to develop sea protocols tailored for the export of fresh produce to long-distance markets. This strategic endeavour aims to optimize the export process for promising fresh fruits, facilitating efficient transportation and reducing logistics costs. As part of this initiative, trial shipments of mangoes and pomegranates to the USA and the European Union are being planned. In a significant breakthrough, bananas were successfully shipped by sea to the Netherlands in November and to Russia in January. The implementation of sea protocols is poised to enable a quantum increase in exports of items such as bananas, mangoes, pomegranates, and other fresh fruits and vegetables, further enhancing India's presence in international markets.

Eight sub-committees have been constituted under the India-Asean free trade agreement joint committee for undertaking negotiations on different areas related to the review of the pact, an official statement said on Monday. India hosted the third meeting of the committee for undertaking the review here from February 16-19.

 

The AITIGA (Asean-India trade in goods agreement) was signed in 2009.

 

In September 2022, both sides tasked the AITIGA Joint Committee to undertake the review to make the agreement more trade facilitative and mutually beneficial.

 

'A total of eight sub-committees have been constituted under the AITIGA Joint Committee for undertaking negotiations on different policy areas related to the agreement,' the commerce ministry said.

 

The first two meetings of the joint committee were held in May and August last year.

 

In the meeting, the ministry said, the sub-committees reported the progress and outcome of their discussions related to market access, rules of origin and standards, technical regulations and conformity assessment procedures to the joint committee.

 

India-10-nation bloc ASEAN trade has grown to USD 131.58 billion in 2022-23.

 

Both sides are aiming to conclude the review in 2025.

 

The fourth meeting of AITIGA joint committee is planned to be held in Kuala Lumpur, Malaysia, in May.

 

The review of the AITIGA was a long-standing demand of Indian businesses.

 

India is asking for a review of the agreement with an aim to eliminate barriers and misuse of the trade pact.

 

Asean members include Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand, and Vietnam.