India’s farm trade, which recovered smartly in FY22, will likely hit a record this fiscal, with both exports and imports scaling new peaks.

 

Agricultural exports are expected to hit a fresh peak of $50 billion and imports, too, may touch $34-35 billion, official and trade sources told. Farm trade thus remains more unsusceptible to a global economic slowdown.

 

These data don’t include exports and imports of cotton, often considered part of the textiles and garments trade.

 

Without the ban on the outbound shipment of wheat, broken rice and wheat flour, and curbs on sugar, farm exports would shoot up to about $54-55 billion in FY23 and widen the net trade surplus in this segment, some of the sources said. The export restrictions were imposed by the government earlier this fiscal to tackle elevated inflationary pressure.

 

According to the latest official data, farm exports grew 12.6% on year until December this fiscal to $38.5 billion, higher than the 10.2% growth in the overall merchandise exports. Such imports rose 11.1% to $26 billion, lower than a 24.9% jump in total goods imports. Vegetable oils, comprising mainly edible oil, accounted for 62% of these imports.

 

However, such exports may come under pressure in the coming months once the full impact of the restrictions, imposed in different months, start to hurt after a time lag, analysts said. Wheat exports, for instance, were allowed in limited volumes this fiscal against the letters of credit already issued before the ban; these despatches are now completed. Moreover, the government had banned exports of wheat products on August 27 and broken rice on September 8, the fallout of which will be captured in the trade data in the coming months. Easing commodity prices may also impact export realisation.

 

Farm exports until December this fiscal were driven by a 40.3% jump in despatches of basmati rice to $3.3 billion; non-basmati rice supplies inched up 3.4% to $4.7 billion (these were up 13% until August). Exports of plantation crops, especially tea and coffee, rose 14.6% to $1.5 billion, and those of unmanufactured tobacco climbed 55% to $677 million.

 

Wheat exports in the first nine months of the fiscal inched up 3.9% to $1.5 billion (mainly due to massive despatches before the ban was slapped).

 

Meanwhile, farm imports were pushed up substantially by a 14.7% jump in edible oil purchases to $16.1 billion. Imports of cashew and spices grew 64.6% and 7.7%, respectively, to $1.6 billion and $1 billion, while those of fruits inched up 1% to $1.9 billion. Pulses imports, despite a 19.2% fall, remained elevated at $1.4 billion.

 

Farm exports had hit a record $47.4 billion in FY22 (including cotton they hit $50.2 billion), defying supply-chain woes in the wake of the pandemic. These were buoyed by a resurgence in despatches of marine products and a sustained rise in non-basmati rice supplies last fiscal.

 

Sustained growth in farm exports, which have often performed below par, remains critical to the country, realising its ambitious merchandise export target of $470 billion for FY23. This is because demand for industrial commodities has started to falter due to a recession in advanced economies like the US and the EU.

 

However, given the heightened risks to food inflation, the government has already resorted to curbs or ban on select products. It banned exports of wheat on May 13 and followed up with prohibition of the outbound shipment of wheat products and broken rice. Similarly, it had capped sugar exports in late May at 10 million tonne for the last marketing year through September, although it relaxed the limit later to as much as 11.2 million tonne. For the current marketing year through September 2023, sugar export limit has been capped at 6 million tonne.

India’s open import policy sans any curbs is expected to encourage growers of pulses such as tur (arhar or pigeon pea) and urad (black matpe) in major producing countries such as Myanmar and East Africa to plant more in the upcoming planting seasons, trade experts said.

 

Anticipating a shortfall in tur and urad output due to erratic weather, the Centre recently announced the extension of the duty-free import policy for these two pulses till March 31, 2024.

 

President of Overseas Agro Traders Association (OATA), Myanmar, Shyam Narsaria, told a webinar on the outlook for tur and urad, that the timely extension of the policy to allow imports without any duty and restrictions will help farmers in Myanmar and Africa to plan their sowings to meet the Indian demand.

 

Crop outlook lowered

Rohit Kumar Singh, Secretary, Ministry of Consumer Affairs, Food and Public Distribution, said the production of tur during the kharif 2022-23 season is likely to be at around 32-33 lakh tonnes (lt), lower than first advance estimates of 38.9 lt, due to the impact of excess rains and the wilt disease in the key-producing regions of Karnataka and southern Maharashtra. Last year, tur output stood at 43.4 lt.

 

Singh said the lower output would lead to higher imports of around 10 lakh tonnes this year, which will be mainly from East Africa and Myanmar. 'Since the sowing season begins there, we wanted to provide some sort of a comfort level for growers in East African countries that there is a market going to be available in India,' Singh said.

 

Negligible volume

Mahesh Ghedia, Director of Africa-based Bajrang International Group, said in terms of total volume, the pulses exports from Africa is negligible compared to other major producers. Total pulses export out of Africa is around 1-1.5 million tonnes, which includes 4-5 lt of tur, 3-4 lt of chick pea and 1.5-2 lt of green gram.

 

Ghedia said compared to developed nations, the African pulses are produced by smallholders using their conventional method of growing and harvesting and have managed to maintain their importance in the Indian market even though volumes are small.

 

'We recommend that pigeon pea/tur should be permanently removed from the restricted commodity items list as it does not compete with Indian farmers in any manner, nor that they can double/triple production overnight unlike developed countries. Hence, the Government should not have any fear with regard to African imports into India and competition with Indian farmers.' Ghedia said.

 

Manoj Chowdhary, Country Head for SunImpex International Foods LLC, Myanmar, said consistent policy from India will help consistent production in Myanmar, which caters to the Indian demand in a big way. Tur production during 2023 in Myanmar is estimated to about 22 per cent more at 2.80 lt during 2023, from previous year’s 2.30 lt.

 

Manohar Bhojwani, CEO, Diet Foods International said India has imported about 4.32 lt of tur till November in 2022-23 as compared to 8.40 lt during 2021-22. Myanmar accounts for about 60 per cent of India’s tur imports, followed by Mozambique at 20 per cent, Sudan 11 per cent, Tanzania at 4 per cent and Malawi at 3 per cent.

Around 50 progressive farmers from adjoining areas of the district and registered exporters from across the State participated and shared views on the occasion. In the meeting, apart from officers associated with NABARD, Krishi Vigyan Kendra and Agriculture Department were present. It was discussed in detail how to export millet being grown by the farmers of the district to other Countries during the meeting.

 

Speaking as keynote speakers and progressive farmer, Birsa Agriculture University (BAU) Professor, BK Jha said that such kinds of programme is very necessary to increase farmers income because convergence of various agencies like APEDA, various departments of Government and private agencies brings many opportunities among farmers and they will certainly get more better opportunities to increase their income.

 

Jha said that Gumla is known as the millet production hub of the State and the farmers of the district grow different types of millets here by working hard, but due to various reasons and lack of market they are not getting proper price of their products. If the crops of the farmers are sold at the right price in the markets, then the economic condition of the farmers will improve, he added. He also demanded from APEDA to conduct an awareness campaign among the farmers at the earliest.

 

To benefit the farmers, the businessmen who came to participate in the meeting told that the farmers of the block are growing crops in an organic way, its quality should be improved, care will have to be taken, only then it can be exported to other countries.

 

Speaking on the occasion, Business Development Manager, APEDA, Suprava informed about the purpose of the program and said that such programs are being organized to promote exports from the State. She said that the farmers of Jharkhand are very hardworking and they are working hard and growing a variety of millet crops in their fields. Farmers are being made aware about exporting some of the major crops grown by them to other countries, she added.

 

The Business Development Manager said that APEDA is primarily an export promotion organization under the Ministry of Commerce and Industry, Government of India and the main objective of this organization is to encourage export of major crops grown by the farmers.

 

NABARD, DDM, Ravishankar, District Agriculture Officer, AK Sinha were also present on the occasion.

Bangladesh is going through a 'golden chapter' in terms of its relations with India, Dhaka foreign minister AK Abdul Momen said, adding that the trade relations between the two nations are also on witnessing a boom.

 

Speaking at an event, Momen said: 'You will be happy to know that we have developed a very good relationship with India.'

 

He also thanked the Indian government for respecting Bangladesh by inviting the country to all the meetings and Summit of the G20.

 

Momen will be visiting India to attend the G20 foreign ministers’ meet which is scheduled to be held in the country’s capital New Delhi on 1 and 2 March.

 

Bangladesh to maintain good relations with India, US, China 

 

Momen said that Bangladesh would continue to maintain a balanced foreign policy with 'powerful countries' – India, the United States and China.

 

'My challenge is… I have to maintain the relationship with these three countries in such a way so that we can have an improved relationship with each country,' he said.

 

‘Bangladesh cannot ignore any country’

 

The Bangladesh foreign minister said that his country 'needs to move ahead maintaining a balance with India and China.'

 

Praising Bangladesh Prime Minister Sheikh Hasina, Momen said that it is because of the 'great and pragmatic leader' that the country is 'lucky to manage equally good relations with all major powers'.

 

The minister also boasts about the friendly ties that Bangladesh shares with Russia, the European Union and the countries in the Middle-East including the Kingdom of Saudi Arabia.

 

He added that the US is a 'major power' and Bangladesh will have to pursue good relations with the country.

 

Future world will be Asia-led

 

Momen said due to its important geographical location, Bangladesh has become a centre of interest. He also thinks that the future world will be an Asian-led world.

 

The foreign minister said that Asia is on track to top 50 per cent of global GDP by 2040 and drive 40 per cent of the world’s consumption.

 

‘Bangladesh model for economic development’

 

Momen said that Bangladesh is now being seen as a model for economic development. He said that the country has three major resources: human resources, fertile land and water.

 

'We will be able to achieve the goal of ‘Sonar Bangla’ if these three resources are properly utilised,' the foreign minister said.

 

Momen emphasised that peace and stability are crucial to continue the development journey.

Union Minister for Agriculture Narendra Tomar on Monday said interest to safeguard the support extended to the agricultural sector in form of subsidy by the government will be protected in the G20 deliberations being held under India's presidency.

 

Addressing the media after inaugurating the 1st International Financial Architecture Working Group Meeting of G20 in Chandigarh, the Union minister categorically said the support for agriculture production cannot be diluted.

 

'Under the leadership of Prime Minister Narendra Modi, India's interest will be protected,' said Tomar while responding to a question, if India will succumb to the pressure from the developing world to end subsidies in the farm sector.

 

On climate change impacting the agriculture, the Union Minister, who was accompanied by Union Minister for Food Processing, Pashupati Kumar Paras, said the year-long deliberations of G20 under India's presidency will definitely have discussions on climate change and its impact on livelihood of farmers.

 

'It's a global challenge and G20 is a going to be a fruitful platform to have deliberations on the issue that is impacting the world,' said Tomar.

 

He said G20 presidency of India is an opportunity to showcase India's strength to the global world.

 

'Earlier, such global summits used to be held in Delhi or in Hyderabad or Bengaluru. Now, as per the Prime Minister's vision, more than 200 meetings are being held in 50 places in the country with an aim to showcase India's cultural and historical strength to the delegates.

 

'The aim is that the delegates visit each and every corner of the country and relish different weather conditions,' said Tomar.

 

More than two lakh international delegates are expected to attend the year-long G20 deliberations.

 

Thomar said the sole aim of the summit is to strengthen the weaker economies.

 

'In today's world, different countries have common problems and G20 is the ideal forum to find solutions to all common issues,' said Tomar.

 

Praising Prime Minister Modi for holding the G20 presidency, Food Processing Minister Paras said, 'All credit goes to PM Modi who has been rated as one of the best Prime Minsters globally.'

The two-day meeting of the first International Financial Architecture Working Group of G-20, being held under the chairmanship of India, was inaugurated in Chandigarh today by the Union Minister of Agriculture and Farmers Welfare, Shri Narendra Singh Tomar and Minister of Food Processing Industries, Shri Pashupati Kumar Paras. On this occasion, Shri Tomar said that India is developing rapidly with science and innovation, both of them are deeply connected with the future of India. We have leveraged technology to create the digital public infrastructure. We have been a significant contributor to financial inclusion in global healthcare and the move to sustainable energy while people-centric development is the basis of our national strategy. This is the same philosophy that the theme of our G-20 Presidency, - 'One Earth, One Family, One Future', also underlines.

 

Union Minister Shri Tomar said that India's chairmanship of G-20 is a proud moment for all our citizens, besides we are well aware of the responsibilities that come with this historic occasion. Today the world is facing many complex challenges, which are deeply interlinked and are not defined by boundaries alone. The challenges being faced are global in nature and require global solutions, therefore the world community today needs to push more towards globally coordinated policies and actions. There is also a need for a renewed faith in multilateralism. Our nation, that is fully committed to democracy and multilateralism,  is poised to demonstrate not only multidimensional development but is also ready to display universally recognized power. It is not surprising that India was described as a beacon in a fragile world at the recently held World Economic Forum meeting and India's commitment to climate goals and return to the post-Covid development path has been lauded by one and all.

 

Shri Tomar said that India is ready to fulfil the responsibility given to it. We will be happy to share our template of the development model, so also we look forward to learning from all. Through our priorities and outcomes this year, through deliberations, we aim to find practical global solutions. In doing so, we also take a keen interest in amplifying the voice of the Developing countries. Shri Tomar said that we cannot leave anyone behind now. Through our inclusive, ambitious, action-oriented and decisive agenda of the G-20, we aim to express the true spirit of our goal, - 'Vasudhaiva Kutumbakam'.

 

Referring to the exemplary contribution of this group in providing aid to the most vulnerable and low-income developing countries in the recent years, he said the measures taken to alleviate the rising insecurity over credit flow are particularly noteworthy. The growing momentum regarding efforts will continue during India's chairmanship in 2023. The group will also consider how we can leverage the group’s comfortable position to redesign global and financial governance. Under the chairmanship of India, the group will try to find out how to better equip the multilateral development banks, the major catalysts of development, to meet the global challenges of the 21st century. Remembering the Father of the Nation, Mahatma Gandhi on this occasion, Shri Tomar quoted him and welcomed the delegates on behalf of the Prime Minister Shri Narendra Modi and all citizens of India, wishing success to the meeting.

 

Union Minister Shri Paras said in the meeting that India's effort is to facilitate constructive dialogue, create, share knowledge and share the collective aspiration for a secure, peaceful and prosperous world. We have to work together in the direction. He said that during India’s presidency of the G-20, it is our responsibility to advance progress and ensure that the international financial architecture today is well equipped to meet the acute challenges and provide maximum support to vulnerable groups. The Prime Minister Shri Modi, in his address to the World Economic Forum, Davos Summit, deliberated upon whether the multilateral organizations are ready to meet the challenges of the new world order. This working group is committed to meeting these challenges and in order to enhance their contribution to development financing towards meeting the development goals, this group may explore options to strengthen these organizations. It is imperative to urgently identify such systems that enable the financial assistance provided by international financial institutions is effectively responsive to the needs. This is important for the low income and developing countries, as they are the major beneficiaries of these resources. Countries most affected by rising debt, again are the low-income countries and most are the middle-income countries. The Working Group can deliberate upon how policy initiatives can address the worsening credit situation. It is the hope that with a diverse array of eminent experts from around the world, the International Financial Architecture Working Group is better poised in coordinating the G20 efforts towards developmental financing, supporting vulnerable countries, maintain financial stability and achieve the goal of 'One Earth, One Family, One Future'.

 

The meeting was attended by IFA co-chairs Mr. William Roos (France), Byungsik Jung (South Korea), Additional Secretary, Union Ministry of Finance, Smt. Manisha Sinha, RBI Advisor Smt. Mahua Rai were among dignitaries present.

The FSSAI has asked state Food Safety Commissioners to check the labels of products being manufactured and sold as butter or ghee having plant origins and initiate enforcement actions against such FBOs (Food Business Operators). The food authority has issued a direction after receiving complaints about plant-based non-dairy products being sold as butter or ghee on e-commerce platforms and in markets.

 

'It is requested to immediately check the labels of such products being manufactured and/or sold under your jurisdiction including on online platforms/websites and take enforcement actions against such FBOs who are selling such plant-based products as ghee, butter etc. or making claims for vegan foods/logo without prior approval of the food authority as per the FSS Act, 2006,' reads the direction issued by the FSSAI.

 

The Commissioners were also asked to submit an action taken report by Feb 15, 2023.

 

According to FSSAI, ‘Dairy Terms’ like ‘plant-based ghee/butter, vegan ghee/butter’ etc. were being used by some food businesses and these products are available in markets and on e-commerce platforms while such products are of non-animal origin.

 

Rakesh Kumar, Director, Compliance, says, 'Such products are of non-animal origin and are usually the blend/mixtures of two or more edible oils/hydrogenated  fats and nature identical flavours etc. Further, it has also been noticed that such products are also being sold deceptively as ‘vegan-ghee’ whereas as per provisions of Food Safety and Standards (Vegan Foods) Regulations, 2022, ghee, butter etc. cannot be claimed to be vegan foods and the use of vegan food claim and vegan logo are permitted only after the prior approval of the food authority.'

 

The food authority has also clarified that the usage of dairy terms, ‘in respect of a product which is not milk, a milk product or a composite milk product, no label commercial document, publicity material or any form of point of sale presentation shall be used which claims, implies or suggests that the product milk, milk product or a composite milk product or which refers to one or more of these products’.

 

Further, the FSS Prohibition and Restriction on Sales Regulations says that ‘no person shall either by himself or by any servant or agent shall sell ghee which contains any added matter not exclusively derived from milk fat’.

State-owned FCI, which plans to sell 25 lakh tonne of wheat to bulk consumers, on Friday said that it will start a weekly e-auctioning from February 1 at a reserve price of Rs 2,350 per quintal plus freight cost. On Wednesday, the government announced plans to sell 30 lakh tonne of wheat in the open market from its buffer stock under the Open Sale Market Scheme (OMSS) in order to check rising wheat and wheat flour prices.

 

Out of 30 lakh tonne, Food Corporation of India (FCI) will sell 25 lakh tonne to bulk consumers like flour millers through e-auction, 2 lakh tonne will be given to states/Union territories and 3 lakh tonne to institutions and state-PSUs at concessional rates for converting wheat into wheat flour and then sell at not more than Rs 29.50 per kg.

 

Addressing a press conference, FCI Chairman and Managing Director Ashok K Meena said: 'The tenders would be up today, and the e-auction will take place on Wednesday'.

 

The auction will be held weekly on every Wednesday. The first auction will take place on February 1 and will continue till March 15, when the new crop will arrive, he said.

 

Wheat will be offered at a reserve price of Rs 2,350 per quintal plus freight charges. A single buyer can quote for a maximum quantity of up to 3,000 tonne and a minimum of 10 tonne, he noted.

 

'We hope small traders and small flour mill owners will take this opportunity,' Meena said.

 

Regional offices have been directed not only to float the tenders for the e-auction of wheat but also encourage local flour millers, traders and wheat product makers to register themselves on the FCI platform so that they can participate in the e-auction, he added.

 

According to the FCI chief, the wheat stock is available across the country, and all the states will be able to provide the stock.

 

About 5 lakh tonne each will be offered in Madhya Pradesh and Punjab, 4 lakh tonne in Maharashtra, 2.5 lakh tonne in Rajasthan, 1.55 lakh tonne in Bihar, 1.25 lakh tonne in West Bengal and 1 lakh tonne in Haryana, he said.

 

He also said the reserve price fixed for wheat is equal to the acquisition cost and is just below the economic cost of Rs 2,654 per quintal.

 

Initially, the old stock will be offered for sale and the new crop will be sold depending on the demand, he added.

 

FCI, the government's nodal agency for procurement and distribution of foodgrains, had around 156.96 lakh tonne of wheat as of January 26 in the buffer stock.

 

On April 1, the country would have a wheat stock of 96 lakh tonne, just above the buffer norm requirement of 75 lakh tonne.

 

Under the OMSS policy, the government allows FCI to sell food grains, especially wheat and rice, at pre-determined prices in the open market from time to time to bulk consumers and private traders.

 

The purpose is to boost the supply during the lean season and moderate the general open market prices.

 

The Centre had banned wheat exports in May last year to control prices, after a slight fall in domestic production and a sharp decline in the FCI's procurement for the central pool.

 

India's wheat production fell to 106.84 million tonne in the 2021-22 crop year (July-June) from 109.59 million tonne in the previous year due to heat waves in a few growing states.

 

The procurement fell sharply to 19 million tonne this year from around 43 million tonne last year.

 

The area under coverage for wheat crops in the current rabi (winter-sown) season is slightly higher.

 

The procurement of new wheat crops would commence on March 15.

Amid government efforts to bring millets on the global food map, Prime Minister Naredra Modi in his first Mann Ki Baat programme of 2023 talked about 'Milletpreneurs' of Odisha. They are a self-help group of about 1,500 tribal women from Odisha's Sundergarh district.

The prime minister lauded the self-help group associated with Odisha Millets Mission.

 

'May I ask you one more thing? You must have heard the word entrepreneur, but have you heard Milletpreneurs? Milletpreneurs of Odisha are in the limelight these days. A Self Help Group of about 1500 women of the tribal district Sundergarh is associated with the Odisha Millets Mission. Here women are making everything from millets… to cookies, rasgulla, gulab jamun, and even cakes. Due to their great demand in the market, the income of women is also increasing,' Modi said.

 

Odisha Millets Mission is a flagship initiative of the state agriculture department to revive millets in collaboration with WSHGs, FPOs, NCDS, WASSAN and local NGOs. The state also celebrated ‘Millets Divas’ with Milli as its mascot on November 10 last year to promote ‘mandia’ or millets as a highly nutritious and eco-friendly food product.

Meanwhile, the first commercial consignment of millets sourced from women-managed farmer producer organisations (FPOs) Shaktimayee Ward Mission Shakti Mahasangha reached the international market. Agricultural and Processed Food Products Export Development Authority (APEDA) under the Ministry of Commerce and Industry facilitated the shipment of this maiden consignment of around 1 tonne of whole and flour of millet to Dubai.

The prime minister in his address said that in Karnataka's Bidar district, women associated with the Hulsoor Millet Producer Company are cultivating millets as well as preparing their flour. 'Through this, their earnings have also increased a lot. Farmers from 12 states have joined the FPO of Chhattisgarh's Sandeep Sharma, who is associated with natural farming. This FPO of Bilaspur is making 8 types of millets flour and their dishes.'

 

Earlier on various occasions, Modi urged farmers to adopt millets in their crops as part of government efforts to promote nutritious coarse grains.

The government's rice procurement is likely to touch last year's level of 592 lakh tonnes in the ongoing 2022-23 marketing year ending September, despite estimated fall in kharif output. Addressing a press conference, Food Corporation of India (FCI) Chairman and Managing Director Ashok K Meena said, 'The way paddy procurement is happening, we expect total rice procurement will reach last year's level of 592 lakh tonne.'

 

While the target is 600 lakh tonnes, about 426 lakh tonnes of rice have already been procured till January 26 of this year as against 410 lakh tonnes in the year-ago period, he said.

 

The country's rice production is estimated at 104.99 million tonnes for the 2022-23 crop year (July-June), down from 111.76 million tonnes in the previous year as per the initial government estimates.