India's agricultural export landscape has witnessed a notable surge in fresh fruits, marking a 29% increase from April to December 2023, as reported by the Agricultural and Processed Food Products Export Development Authority (APEDA). This period saw Indian fresh fruits penetrating 111 global markets, a jump from the previous year's 102, thus securing their place in the over $100 million export value category. Key commodities like bananas, kesar, and dasheri mangoes have seen remarkable growth rates of 63%, 120%, and 140% respectively. Lentils and fresh eggs also posted significant increases of 110% and 160%.

 

Processed vegetables and miscellaneous items followed suit, with substantial growth, contributing to the positive trajectory of 18 out of 23 Principal Commodities in APEDA's basket. The fiscal year 2022-23 saw India's agricultural exports hitting $53.1 billion, with APEDA commodities making up 51% of this figure, underscoring the sector's robust performance.

The Agricultural and Processed Food Products Export Development Authority (APEDA), under the Ministry of Commerce and Industry, facilitated the export of bananas from India to Russia via Sea by M/s. Gurukrupa Corporation Pvt. Ltd. a Mumbai-based exporter of fruits and vegetables regularly exporting fresh fruits and vegetables to the EU and the Middle East. 

 

A consignment of 20 MT (1540 boxes) of bananas was flagged off on 17th February 2024 from Maharashtra by Chairman, APEDA, Shri Abhishek Dev in a collaborative effort with the Central Institute of Sub-tropical Horticulture (CISH). APEDA highlighted the development of sea protocol employed for this shipment by CISH to maintain the quality of fruit in transit.

 

Chairman APEDA highlighted APEDA’s financial assistance scheme, which now is putting special emphasis on supporting women entrepreneurs. He applauded the contribution of CISH in the development of the sea protocols and congratulated all personnel for a successful flag-off.  

 

Recently, Russia has shown keen interest in the procurement of tropical fruits from India with bananas being one of them, which significantly is a major Agri import of Russia, which was presently, primarily being imported from Ecuador, in Latin America.

 

The major export destinations for Indian bananas include Iran, Iraq, UAE, Oman, Uzbekistan, Saudi Arabia, Nepal, Qatar, Kuwait, Bahrain, Afghanistan, and the Maldives. Additionally, the USA, Russia, Japan, Germany, China, the Netherlands, the UK, and France present India with abundant export opportunities.

 

M/s. Gurukrupa Corporation procured bananas directly from farmers of Andhra Pradesh. After harvesting, bananas were brought to an APEDA-approved packhouse in Maharashtra where it was graded, sorted, packed, boxed, and stuffed in containers. The container was transported to JNPT for further voyage to Novorossiysk port, Russia for the final destination at Moscow Russia.

 

Banana is a major horticultural produce with Andhra Pradesh being the largest banana-producing state in India, followed by Maharashtra, Karnataka, Tamil Nadu, and Uttar Pradesh. These five states collectively contribute around 67 percent to India’s banana production in the fiscal year 2022-23.

 

Despite being the largest global producer of bananas, India’s exports do not reflect this quantitative evaluation. India’s export share in the global market is only 1% even though the country accounts for 26.45 percent of the world’s banana production (35.36 Million Metric Tons). In the fiscal year 2022-23, India exported bananas worth USD 176 million, equivalent to 0.36 MMT. 

 

Within the next five years, Banana exports from India are expected to achieve the target of 1 billion USD. This achievement will ensure an increase in farmers’ income and improve the livelihood of more than 25,000 farmers and is estimated to generate employment for more than 50,000 aggregators directly or indirectly linked to the supply chain.  

 

India, South Africa and Brazil can play a critical role in getting successful outcomes on the issues of fisheries and agriculture, along with the ecommerce moratorium, at the upcoming ministerial of the World Trade Organization (WTO), its director general Ngozi Okonjo-Iweala said.

 

Free trade agreements are not taking precedence over multilateralism, she said in an exclusive interview with ET,ahead of the 13th ministerial conference (MC13) in Abu Dhabi during February 26-29.

 

'We look at India as a leader, and we think that as a leader, India has a lot to do in terms of making sure we have a successful MC13,' she said.

 

G20 Troika Should Support UAE

Okonjo-Iweala added that New Delhi was 'instrumental at MC12 in helping to get to success.'

 

India, Brazil and South Africa are the troika of the G20, the WTO DG said. 'We hope they will work together to ensure MC13 is a success... the entire package… not one issue or the other… it is across the board,' she told ET.

 

'Not just G20, they are also BRICS (members)… they should support the UAE to ensure the UAE is a successful host, like it was for COP28,' she said, referring to the climate summit held late last year in Dubai.

 

Okonjo-Iweala said all three countries have to play a critical role in outcomes on fisheries, agriculture and ecommerce.

 

'We're trying to also (put) together a package of measures that developing countries want, which they think can help them, especially the least developed countries,' she said.

 

As many as 122 WTO members are discussing an agreement on investment facilitation for development, of which 85 are developing countries that want this pact. 'It’s a plurilateral that they are trying to insert into the legal framework of the WTO. So, support for that will be very welcome,' she said.

 

DISPUTES & PACTS

On WTO reforms and ending the impasse in the appellate body, she said there is a misconception about the dispute settlement system — that it’s not functioning at all. 'That is not the case,' Okonjo-Iweala insisted.

 

The system has two levels — the panel level and the appellate body. She said the panel level is functioning. 'The dispute settlement system is still managing to handle cases. The second tier — the appellate body — is still not working, but members need to find substitutes for that tier,' said Okonjo-Iweala, adding that this is one area where all members still need to come together to try to deliver a fully functioning dispute settlement system.

With the negotiations for the proposed India-UK free trade agreement reaching an advanced stage, the Prime Minister's Office reviewed the progress of the talks on February 16, sources said. Commerce and Industry Minister Piyush Goyal and Commerce Secretary Sunil Barthwal were also present in the meeting, they said.

 

'The talks for the agreement are at a crucial stage now. About three reviews have happened so far at the highest level,' they said, adding both countries are working to iron out differences on the remaining issues.

 

The commerce secretary recently stated that the negotiations were taking time because 'we want' to safeguard India's interest.

 

'India should commercially gain out of it and we should also be able to safeguard the interest of our farmers, PLI (production linked incentive) scheme goods. So, we are there to see that the deal is a fair deal,' he said.

 

So far 13 rounds of talks have been completed and the 14th round started on January 10.

 

Some of the key issues involved in the pact include customs duty cut on electric vehicles and whiskey and the movement of professionals. 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 duties.

 

On the other hand, the UK is seeking a significant cut in import duties on goods such as scotch whiskey, automobiles, 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 bilateral trade between India and the UK increased to USD 20.36 billion in 2022-23 from USD 17.5 billion in 2021-22.

Prime Minister Narendra Modi on Monday reiterated his government's commitment to support farmers in exploring new avenues in agriculture. Addressing an event in Lucknow in Uttar Pradesh, the prime minister emphasized the importance of working towards a common goal of having Indian food products on dining tables across the globe.

 

His remarks came amid a protest by a section of farmers over their various demands such as a legal guarantee for minimum support price for crops.

 

'We are assisting and encouraging farmers to take our country's agriculture on a new path,' he said.

 

He emphasised the focus on natural farming and millets. 'This is the right time for investment in superfoods like millets,' he said.

 

He cited the emergence of large-scale natural farming along the banks of the Ganges in Uttar Pradesh, which not only benefits farmers but also helps preserve the purity of sacred rivers.

 

The prime minister appealed to food processing entrepreneurs to prioritise the mantra of 'zero effect, zero defect' in their endeavours.

 

He highlighted the success stories of products such as Siddharth Nagar's kalanamak rice and Chandauli's black rice, which are now being exported in significant quantities, and pitched for collective efforts to take Indian food items to people across the world.

 

The prime minister encouraged entrepreneurs to form partnerships with farmers, underscoring the government's efforts in empowering small-scale farmers through farmer producer organisations and cooperative societies, which present opportunities for mutually beneficial partnerships.

 

'Benefit to farmers and agriculture is good for your business too,' Modi told the investors.

 

On Uttar Pradesh's pivotal role in driving the rural economy and agriculture-based economy of India, the prime minister called upon stakeholders to maximize the benefits of this opportunity.

 

He expressed confidence in the capabilities of the people of Uttar Pradesh and the efforts of the 'double-engine government' in laying the foundation for the state's and the nation's progress.

 

Modi launched 14,000 projects across Uttar Pradesh worth more than Rs 10 lakh crore at the fourth ground-breaking ceremony here on Monday for investment proposals received during the UP Global Investors Summit.

 

The projects relate to sectors such as manufacturing, renewable energy, food processing, housing and real estate, hospitality and entertainment, and education.

 

Uttar Pradesh Governor Anandiben Patel, Defence Minister Rajnath Singh, Chief Minister Yogi Adityanath, and several industrialists and representatives of top global and Indian companies attended the event.

 

Modi's remarks on agriculture and rural economy came amid a protest by a section of farmers over their various demands.

 

Farmers from Punjab began their march to Delhi on February 13 but were stopped by security personnel at Shambhu and Khanauri points on Punjab's border with Haryana.

 

Thousands of protesting farmers have been camping at the Punjab-Haryana border since as part of their 'Delhi Chalo' march.

 

Besides a legal guarantee for MSP, the protesting farmers are demanding the implementation of the Swaminathan Commission's recommendations, pension for farmers and farm labourers, farm debt waiver, no hike in electricity tariff, and reinstatement of the Land Acquisition Act of 2013.

The UAE was among the top five global markets for Indian basmati rice in the first nine months of the current financial year, the Indian government’s Agricultural and Processed Food Products Export Development Authority (APEDA) announced yesterday.

 

Of the other four lucrative markets, three are in the Middle East, namely, Saudi Arabia, Iran and Iraq. The fourth big market for this fine variety of rice is the US.

 

India’s fiscal year begins on 1st April. So, the period covered is from the beginning of April to the end of December 2023, for which official statistics are available.

 

During this nine-month period, the total worldwide exports of Indian basmati rice rose by 19 percent. In value terms, it rose to $3.97 billion from $3.33 billion during the corresponding three quarters of the previous year.

 

In volume, the exports went up by 11 percent, from 3.198 million metric tonnes to 3.543 million metric tonnes within the same timeframe.

 

'This robust performance underscores the enduring popularity and global demand for basmati rice, further solidifying its position as a major agricultural product in India's export portfolio,' APEDA said.

 

India's total agricultural exports in the fiscal year 2022-23, were worth $53.1 billion, APEDA said on the occasion of its 38th Foundation Day on 13th February.

Union Minister of Commerce & Industry, Consumer Affairs, Food and Public Distribution, and Textiles, Shri Piyush Goyal said that the present government’s ambition is to make India a fully developed nation by 2047 and all efforts are being made in this direction. While addressing a media delegation of 35 journalists from 19 countries of Latin American and the Caribbean in New Delhi today, Shri Goyal said that the government’s ambition is to increase the current $3.7 trillion economy to be a $30-35 trillion economy by 2047 and to ensure food and energy security of the nation.

 

Shri Goyal hailed Prime Minister Shri Narendra Modi’s relentless pursuit of twin tracks - strengthening the macroeconomic fundamentals of India to prepare the country for the future and focus on the welfare of the poor pertaining to food, healthcare and education. The Union Minister said that Prime Minister Shri Narendra Modi’s holistic vision to address the issues regarding welfare of the poor coupled with good governance over the last decade has helped India transform from the 11th largest to 5th largest economy in the world and is on track to become the 3rd largest GDP by 2027. 

 

Shri Goyal said that the current government has completed a turnaround of the macroeconomics of the country with the foreign currency reserves being 4th largest in the world, twice since 2014, and the currency is amongst the best performing in developing countries. Shri Goyal said that India has witnessed the best performing decade in the last 75 years of Independence with inflation being halved in the past 12 years that has benefited the economy with interest rates in control.

 

The Minister further said that the government inherited a broken economy when they came to power with a clear mandate in 2014. 'We inherited a broken economy, deep in distress and a poor reputation around the world for the India growth story and its ability to play a part in geopolitics', said Shri Goyal.

These ties not only promote economic growth, but also overall development between the two nations. The Ministry of External Affairs (MEA), Government of India made these remarks in a press release published recently.

 

The trajectory of Indo-Bangladesh bilateral relationship shows how the two countries have accrued mutual benefits due to close ties. Consequently, Indo-Bangladesh ties have become a matter of significant importance in Bangladeshi domestic politics.

 

Initiatives for trade facilitation

 

The MEA said India has taken steps to facilitate trade with Bangladesh by improving infrastructure at border points and easing customs procedures.

 

Agreements like the Agartala-Akhaura rail link and the Petrapole-Benapole Integrated Check Post aim to facilitate the seamless movement of goods and people within the sub-region.

 

India provides duty-free access to a wide range of Bangladeshi products, including textiles and garments. New Delhi extends preferential treatment to Bangladesh through various trade agreements, fostering economic ties and benefiting both nations.

 

Both countries grant each other’s merchant vessels the most favoured nation treatment when entering, leaving, or staying at their ports, similar to how they treat vessels under the flag of any third country.

 

These agreements allow Bangladeshi exporters Duty-Free and Quota-Free (DFQF) access to 100 per cent tariff lines, except for alcohol and tobacco products which fosters economic cooperation and strengthens bilateral ties.

 

Boost in Bangladesh’s exports to India

 

Bangladesh is India’s biggest trade partner in South Asia. Conversely, India is the second biggest trade partner of Bangladesh. The bilateral trade between India and Bangladesh has steadily grown over the last decade.

 

In 2021-22, the trade volume reached $18.2 billion, compared to $10.8 billion in 2020-21.

 

Exports of Bangladesh have tripled over the last decade, crossing $1 billion in 2018-19.  These trade relations play a crucial role in enhancing economic cooperation and fostering stronger ties between the two neighboring countries.

 

Over the last 26 years, the exports of Bangladesh to India have increased at an annualised rate of 12.1 per cent, reaching $1.72 billion in 2021. India is the second-largest import source for Bangladesh, trailing only behind China.

 

Dhaka’s exports to India reached a total of $1,990 million in 2021-22, whereas imports from India amounted to $13.69 billion in the same period.

 

Currency settlement

 

India and Bangladesh have taken a significant step by agreeing to settle payments for their international trade partly in Indian rupee (INR). This move can reduce pressure on Bangladeshi dollar reserves and enhance trade efficiency.

 

Initially, trade settlements will occur in INR, with a later transition to Tk once the two Indian banks establish nostro accounts with Bangladesh's EBL and Sonali Bank. Sonali Bank and Eastern Bank Ltd will establish Rupee Nostro accounts with India's ICICI Bank and SBI.

 

Once this system starts functioning smoothly, other banks from both countries will be allowed to participate in this process. These interactions have paved the way for joint ventures, investment, and technology transfer.

 

In summary, the trade dynamics between India and Bangladesh continue to evolve, benefiting both nations and fostering economic progress. India’s conciliatory trade relations with Bangladesh have been instrumental in fostering economic cooperation and strengthening bilateral ties.

The government has decided to extend export benefits under the Remission of Duties and Taxes on Exported Products (RoDTEP) scheme for companies in the special economic zones (SEZs) and export oriented units (EOUs). Various central and state duties, taxes, and levies imposed on input products are refunded to exporters under the scheme. The current RoDTEP rates range from 0.3- 4.3%.

 

'Post rolling out of ICEGATE (Indian Customs Electronic Data Interchange Gateway) in SEZs, the RoDTEP scheme may also be extended to SEZs,' said the commerce department in an office memorandum.

 

This Directorate General of Foreign Trade is likely to issue a formal notification soon amending the foreign trade policy on the same.

 

ICEGATE is the national portal of Indian Customs of Central Board of Indirect Taxes and Customs and is an interface between the trade users and customs department.

 

The government in August 2021 announced the rates of tax refunds under the scheme for 8,555 products but SEZs and EOUs were excluded.

 

As per economic think-tank Global Trade Research Initiative (GTRI), large-scale exports from SEZs, such as electronics, petroleum products, and jewellery, which have high import content, RODTEP could represent a significant incentive.

 

The scheme does not include all exports. Products exported from SEZs, EOUs, Electronic Hardware Technology Parks, Biotechnology Parks and Customs bonded warehouses; exports under Advance Authorisation (which allows duty-free imports of inputs for export production); re-exported imported goods are excluded.

 

The list also includes exports subjected to minimum export price or export duty; restricted export or import products; and supplies from Domestic Tariff Areas to SEZz and Free Trade and Warehousing Zones units.

 

GTRI cautioned that RODTEP may lead to overcompensation for import intensive exports from SEZs.

 

The decision may be a disproportionately 'high bonanza' for high import intensive exports from SEZs, it said, adding that the decision overlooks exports from other categories that are in a similar situation as SEZs.

Fresh fruits have shown remarkable growth in India's agricultural export basket, surging by 29 per cent during the nine months from April to December 2023, according to the latest data compiled by the Agricultural and Processed Food Products Export Development Authority (APEDA). During this period, India's fresh fruits have expanded their market presence to 111 countries, up from 102 destinations the previous year, solidifying their position in the category of exports valued at $ 100 million or more. 

 

Additionally, from April to November 2023, several key commodities experienced significant growth compared to the previous year, including bananas with a 63 per cent increase and kesar and dasheri mangoes with growth rates of 120 per cent and 140 per cent, respectively. Lentils (dried and shelled) saw a growth of 110 per cent, while fresh eggs surged by 160 per cent.

 

From April to December 2023, the export value of Basmati rice surged by 19 per cent, reaching  $ 3.97 billion compared to $ 3.33 billion in the previous year. Concurrently, the export quantity witnessed a notable 11 per cent growth, rising from 31.98 lakh metric tons to 35.43 lakh metric tons within the same timeframe. Top markets for Basmati rice exports included Iran, Iraq, Saudi Arabia, the US, and the UAE. This strong performance highlights the enduring popularity and global demand for Basmati rice, consolidating its status as an essential agricultural product in India's export portfolio.

 

Additionally, processed vegetables experienced a 24 per cent export surge during this period, followed by miscellaneous processed items. Fresh vegetables also saw significant growth compared to the previous year. 

 

Among the 23 Principal Commodities (PCs) in APEDA's export basket, 18 exhibited positive growth during April-December 2023. Notably, 13 out of 15 large PCs, with exports exceeding $ 100 million in the previous year, experienced positive growth, averaging a growth rate of 12 per cent.

 

In the fiscal year 2022-23, India's agricultural exports reached $ 53.1 billion, with APEDA's commodity basket contributing a significant 51 per cent of India's agri-exports.