In 2022, India managed to seal two major free trade agreements, one with Australia and the other with the UAE, increasing the probability of some more being finalised in 2023. In an interaction with businessline, Commerce & Industry Minister Piyush Goyal discusses the trade land-scape for 2023 and the importance of FTAs. Excerpts:

 

Q

Can exporters expect some handholding from the government in these difficult times when world trade growth is shrinking?

We are all the time available to  support and help our exporters and that’s a continuous process. As issues get flagged off, the government does its inter ministerial consultation and, wherever possible, takes proactive measures to support Indian industry. So we are a 24 hour government available to our business community, particularly the exporters for any problem that they may face.

 

Just now, I spent three hours on a video conference (VC) with all the export promotion councils. We made copious notes on what steps we can take (to increase exports). All of them have committed to me that they will be pushing in this quarter for maintaining this momentum to the best of their ability.

 

The Production Linked Incentive (PLI) schemes are all recent. All are in the phase of being developed. But some have also started enjoying the fruits. Bluestar MD  Vir Advani just came and said his company was one of the first to start  air conditioning facility unit under PLI for white goods and they are already exporting.

 

Q

India will soon host the next Indo Pacific Economic Forum (IPEF) meet. Do you think there could be some pressure on India to get into the trade pillar of the negotiation?

You think Prime Minister Modi can be pressured? This country protects its own interests? We have, at the moment, opted out of the trade pillar because we don’t know the final contours. We don’t know whether there are any binding commitments or some restrictions which can hurt our manufacturing or economy. 

 

So, until we see exactly the contours and the benefits, we have said we will observe.

 

If we find that it is in India’s interest, we’ll be happy to join. We have not walked out or not stopped it like we walked out of RCEP. It is just that we have not yet opted for it. In the other three pillars we are there.

 

Q

How does India plan to resolve the tough issues it faces in its FTA negotiations with the UK? Is an early harvest pact still being considered? 

Our approach (in the India-UK FTA) is to focus on what is acceptable to both countries and  not allow the sensitive issues to scuttle our discussions. But with Canada we are looking at an early harvest. It’s called an early progress trade agreement, in which we are hoping to capture the low hanging fruits so that businesses can start enjoying the fruits faster.

 

Q

How soon can the FTA with Canada be finalised? Wasn’t the proposed deadline December 2022?

We have never had any deadlines. Those could be estimates. But there are a lot of issues in the ministerial consultations. Please bear in mind Australia, UAE both are non manufacturing countries. They don’t have a big manufacturing base. So the businesses complement each other. Whereas with Canada, while they are also not much of a manufacturing base, with them we have to go into more details. 

 

The UK is a country manufacturing many products. So we have to do it very carefully. Every item has to be seen with great detail. 

 

Q

How are the FTA talks with Gulf Cooperation Council (GCC) progressing?

Unfortunately, the term of the GCC’s Secretary General is over and the new one has not yet been appointed. Once he comes in, we will have to finalise a few elements of the terms of reference (ToR).

The government won’t lift restrictions on export of wheat before the next crop, which arrives in March-April, keeping in mind how production was hit last year due to early onset of summer in March impacting the Food Corporation of India’s procurement target. The Centre is also likely to take a call soon on the sale of wheat from its stock in the open market to cool down prices, which touched a record high on Tuesday because of less availability.

 

Sources said though there has been demand to relax wheat export, the priority for the government is to see that the price of the staple food grain doesn’t increase exorbitantly in the domestic market. 'There is no scope for allowing export when we have less availability. We will soon offer wheat for open market sale,' said an official. The flour millers have been demanding early release of wheat from the stocks of Food Corporation of India (FCI) in the open market to moderate the prices.

 

The data from government’s Price Monitoring Cell shows that the average retail price of wheat on Tuesday was Rs 33.3 per kg, which is 17.6% more than last year and 40.3% higher that what it was five years back. Similarly, the average retail price of atta (wheat flour) on Tuesday was Rs 37.8 per kg, which is 19.8% more than last year and 44.2% higher than the price at which it was selling five years back.

 

The consumer affairs ministry’s data also show that the modal retail price (most common price across centres) of wheat and atta on Tuesday rose to Rs 29 and Rs 35 per kg respectively, from Rs 22 and Rs 28 a kg six months ago.

 

The trend is similar in wholesale prices of atta as well.

 

Meanwhile, the trend show that across major mandis of Madhya Pradesh, Haryana, Punjab and Rajasthan, wheat prices are ruling 41%–44% above the minimum support price (MSP) of Rs 2,015 per quintal for the current season because of supply constraints. Last year’s low output and spike in export of wheat in the first few months due to Russia-Ukraine have been the main contributors for short supply.

 

Data show that the wholesale wheat prices on Tuesday crossed Rs 2,900 per quintal at Sehore, which is one of the biggest mandis in Madhya Pradesh and in Delhi it was selling at Rs 2,815. The arrival of wheat has been less as farmers have little stock with them.

In the wake of the United Nations General Assembly declaring 2023 as the International Year of Millets, the Ministry of Food Processing Industries is hosting Millets Mahotsav across 20 States and 30 Districts in the country with the aim of creating awareness about the nutritional benefits, value addition, consumption and export potential of Millets. The districts include Mandla (Madhya Pradesh), Vizianagaram (Andhra Pradesh), Bhojpur (Bihar), Mahbubnagar (Telangana), Dharmapuri (Tamil Nadu), Agra (Uttar Pradesh), Karbi Anglong (Assam), Virudhunagar (Tamil Nadu), Dang (Gujarat) , Parvathipuram Manyam (Andhra Pradesh), Komaram Bheem (Telangana), Almora (Uttarakhand), Nuapada (Odisha), Bathinda (Punjab), Palakkad (Kerala), Davangere (Karnataka), Tapi (Gujarat), Barmar (Rajasthan), Kullu (Himachal Pradesh), Tumkur (Karnataka), Bhind (Madhya Pradesh), Nandurbar (Maharashtra), Jodhpur (Rajasthan), Sukma (Chhattisgarh), Mahendragarh (Haryana), Aligarh (Uttar Pradesh), Kalimpong (West Bengal), Khunti (Jharkhand) and Jamui (Bihar).The series of events are being hosted under the PMFME Scheme of the Ministry under ‘Millets Mahotsav’ which commenced from Mandla, Madhya Pradesh on 21-22 January 2023 followed by the event in Vizianagaram in Andhra Pradesh on 22-23 January, 2023.

 

The series of events are being hosted under the PMFME Scheme of the Ministry under ‘Millets Mahotsav’ which commenced from Mandla, Madhya Pradesh on 21-22 January 2023 followed by the event in Vizianagaram in Andhra Pradesh on 22-23 January, 2023.

 

The event was inaugurated by Shri Kolagatla Veerabhadra Swamy, Hon'ble Deputy Speaker, Government of Andhra Pradesh in the presence of Shri Praveen Kumar Director, Ministry of Food Processing Industries, Shri Majji Srinivasa Rao, ZP Chairman, Vizianagaram, Smt. Vempadapu Vijayalakshmi, Mayor, Vizianagaram Municipal Corporation, Shri. Bellana Chandra Sekhar, Hon'ble Member of Parliament, Vizianagaram, Shri Indukuri Raghuraju, Hon'ble Member of Legislative Council  and Government of Andhra Pradesh at Vizianagaram, Andhra Pradesh today. During his inaugural address,  Shri Kolagatla Veerabhadra Swamy touched upon the importance of millets and the immense market potential for millet-based value-added products. He informed the stakeholders about the various initiatives undertaken by the Government of India to support the food processing sector and cited the role of the PMFME (Pradhan Mantri Formalization of Micro Food Processing Enterprises Scheme in empowering micro-food processing enterprises by providing financial, technical and business support across the value chain.

 

The two-day event was aimed at bringing all the stakeholders of the food processing sector with special focus on millets, on a common platform and encompassed a wide range of activities like exhibition and sale of various millet-based products, informative sessions on millet processing, interactive sessions between industry experts and micro food processing enterprises, SHGs, FPOs engaged in food processing, Buyer Seller Meet where the leading industry players participated and networked with the food processing Micro Entrepreneurs followed by a cultural program by indigenous groups, Book Launch showcasing 75 Millet recipes and cash prizes awarded to the millet recipe contest winners. The event witnessed an overwhelming response with around 1000 participants attending the two day event including micro food processing enterprises, self-help groups, farmer producer organizations, producer cooperatives, etc.

 

The exhibition focused on various Millet-based products such as flour, pasta, vermicelli, suji, ready-to-eat snacks along with showcasing processing machinery. The products were also open for sale, providing a great opportunity for the micro-entrepreneurs of Andhra Pradesh to not only participate in technical sessions but also generate revenue and forge partnerships for stronger market reach.

 

In addition to the Millets Mahotsav, a mega-food event is also being organized by the Ministry from 3rd to 5th Nov 2023 in New Delhi to provide a unique platform to all stakeholders i.e. producers, food processors, equipment manufacturers, logistics players, cold chain players, technology providers, academia, start-up & innovators, food retailers, etc. to interact and have a dialogue. The event is slated to be the biggest-ever congregation of dignitaries, global investors and business leaders of major global and domestic food companies which would put India firmly on the global food landscape.

 

Being grown in more than 130 countries, Millets are considered traditional food for more than half a billion people across Asia and Africa. Millets are important by the virtue of their mammoth potential to generate livelihoods, increase farmers’ income and ensure food & nutritional security all over the world. India is one of the leading producers of millets in the world with an estimated share of around 41 percent in global production. Recognizing the enormous potential of Millets, which also aligns with several UN Sustainable Development Goals (SDGs), the Government of India (GoI) has prioritized Millets. Spearheaded by the Honourable Prime Minister, the Government of India’s proposal for International Year of Millets (IYoM) 2023 was accepted by the United Nations General Assembly (UNGA). The declaration has been instrumental for the Government of India to be at the forefront of celebrating IYoM.

 

The Ministry of Agriculture and Farmers Welfare, Government of India, in collaboration with the Government of Rajasthan, has organized a two-day Agriculture Festival-Exhibition and Training at Dussehra Ground in Kota, Rajasthan on 24th-25th January 2023 to make Kota Division an advanced and a leading player in the field of agriculture and rural development. The exhibition was inaugurated by Lok Sabha Speaker Shri Om Birla and Minister of State for Agriculture and Farmers Welfare, Government of India, Shri Kailash Chowdhary.

 

Shri Lalchand Kataria, Minister of Agriculture and Animal Husbandry, Government of Rajasthan and Shri Udayalal Anjana, Minister of State, Cooperation Department, Government of Rajasthan were also present at the inauguration ceremony. Apart from them senior officials from Central Government, State Government and Indian Council of Agricultural Research and around 15,000 farmers, agri startups, corporates bankers, extension workers and employees of private agricultural institutions participated in the first day of the event.

 

Shri Samuel Praveen Kumar, Joint Secretary (Extension), Department of Agriculture & Farmers Welfare, Government of India delivered the welcome address. Shri Dinesh Kumar, Principal Secretary (Agriculture), Government of Rajasthan shared the details of the programme.

 

Lok Sabha Speaker Shri Om Birla said that India is an agricultural country. Our country is at the forefront in food production. In the changing agricultural landscape, we should resolve to use contemporary practices, and using innovation, we should aim to become a frontline country in the world. He said that AatmaNirbhar Bharat (self-reliant India) will be realized when our farmers use new agricultural practices, innovation, value addition, more crop per drop etc. Shri Om Birla stressed on the use of horticulture, startups and drones. He said that through Startups, we have worked to bring down production cost in some instances, and in other cases we have increased production, at some places we have set up food processing units and at other places we have achieved value addition.

 

Minister of State for Agriculture and Farmers Welfare, Government of India, Shri Kailash Chowdhary, while addressing the farmers, said that keeping in view the global scenario of the agriculture sector, the Department of Agriculture and Farmers Welfare has implemented several important schemes for the progress of Indian agriculture. This is a proof of dedication towards farmers and efforts being made to increase their income. An unprecedented increase has been made in the budgetary allocation of the Ministry of Agriculture and Farmers Welfare. The combined budget allocation of the Ministry of Agriculture and Fisheries, Animal Husbandry and Dairying in the year 2013-14 was Rs 30,223.88 crore, which has been hiked by more than 4.59 times to Rs 1,38,920.93 crore in the year 2022-23.

 

Shri Lalchand Kataria, Agriculture and Animal Husbandry Minister, Government of Rajasthan said that to improve the financial condition of the farmer, there is a need for new technology, innovation, animal husbandry, traditional farming, all of which has been displayed here. Through the startups, farmers will get information about how to store, how to do farming with less water, how to plough the field with less cost.

 

Shri Udayalal Anjana, Minister of State, Cooperative Department, Government of Rajasthan said that both Agriculture Department and Cooperative Department are complementary to each other. Farmers should be educated by organizing such fairs, which will strengthen their economic condition. Lok Sabha Speaker Shri Om Birla and Minister of State for Agriculture and Farmers Welfare, Government of India, Shri Kailash Choudhary also inaugurated the drone demonstration by flying the drone themselves.

 

In this exhibition, 150 stalls have been set up to provide farmers with updated information related to agriculture. Keeping in view the important role of startups in the field of agriculture, 75 stalls of Startups have been set up in this exhibition, which is one of the main features of the exhibition. Information about the schemes being run by the Central and State Governments for the farmers is being provided through the various stalls set up in the exhibition. Along with this, private sector companies / organizations related to the supply of various inputs for agriculture have also displayed their products.

 

After the formal inauguration of the two-day agriculture festival, exhibition and training programme, parallel farmer training sessions were organized in three training rooms on modern and scientific agricultural techniques on the subjects of agriculture, horticulture, animal husbandry and dairying. Two training programmes each were organized in all the three auditoriums this afternoon. Farmers were taught the nuances of remunerative farming by various subject experts. Six training programmes were organized on contribution of Quality Seeds in crop production, advanced cultivation of guava and amla in Farmers Producer Organization Kisan Bazar, Kota division, Climate Smart Farming Practices, Sheep Farming for additional income and importance and use of Nano Urea in Sustainable Farming etc.

 

Vote of thanks was delivered by Smt. S. Rukmani, Joint Secretary (M&T), Ministry of Agriculture & Farmers, Government of India.

Under India-Israel agricultural cooperation, 30th Indo-Israel Centre of Excellence (CoE) was inaugurated in Gignow, Bhiwani, Haryana on 22 January 2023. This coincides with India and Israel nearing the completion of 30 years of full diplomatic relations.

 

Jai Parkash Dalal, Minister of Agriculture, Government of Haryana; Kamal Patel, Minister of Agriculture, Government of Madhya Pradesh and Ambassador of Israel to India, Naor Gilon jointly inaugurated the centre.

 

This centre, established as part of the Indo-Israel Agricultural Project (IIAP), is dedicated to semi-arid horticultural crops. Israel, which is famous for 'making the desert bloom', is a pioneer in developing sustainable technologies and solutions for all agricultural sectors. For many decades, Israel has successfully overcome harsh climatic conditions and knows how to maximise resources in an arid environment.

 

Speaking on this occasion, Ambassador Naor Gilon said, 'This is a significant milestone in the agricultural cooperation between Israel and India. It is extraordinary as this is the 30th Centre of Excellence inaugurated as our countries are nearing the completion of 30 years of full diplomatic relations. With this inauguration, we now have 30 fully-active Centres of Excellence in different states across India. More such centres are in the pipeline. These centres are increasing farmers’ yield and productivity while diversifying local crops and improving the quality of produce.'

 

The establishment of the centres has been possible due to the coordinated efforts of the Government of India, state governments and MASHAV (Israel’s Agency for International Development Cooperation) at Israel’s Ministry of Foreign Affairs.

 

These centres provide a suitable platform for a rapid transfer of technology to Indian farmers. New agricultural technologies such as protected cultivation, drip irrigation and fertigation are demonstrated here. The methods and technologies are adapted to the local conditions and requirements of the Indian farmers, with the intent of significantly increasing their income.

 

Every year, the centres produce more than 40 million premium-quality vegetable seedlings, and over 500 thousand high-quality fruit plants, and train more than 120 thousand Indian farmers.

 

MASHAV also brings many Israeli experts to India and trains the trainers at these centres throughout the year. Similarly, Indian agricultural officers heading these centres receive training in Israel. For example, over 60 Indian government officials visited Israel to receive training last year.

 

The Israel-India agricultural cooperation has deepened and widened since full diplomatic relations were established in 1992. During the initial period of the establishment of the Centres of Excellence, the newest technologies in a range of agricultural fields were brought from Israel and implemented at these centres. Over the years, the agricultural cooperation between the two countries has further expanded. Now Israeli technologies and know-how are being transferred and manufactured in India, further boosting the ‘Make in India’ initiative and benefiting the entire world. The newly inaugurated centre is one such example, which will demonstrate Israel-based agricultural technologies produced in India such as drip irrigation, mulching, and greenhouses among other solutions.

Economic ties between the UAE and India were under the spotlight at a summit showcasing the historic and future links between the two nations.

 

Dubai Chambers hosted the India-UAE Partnership Summit and ministers and officials revealed the scale of trade between countries.  

 

More than 30% of the start-up community in Dubai is represented by Indians, while Indian companies and NRI-owned entities have generated around 1 million jobs in the UAE.

 

UAE-India trade

Piyush Goyal, India’s Minister of Commerce and Industry, inaugurated the summit with an opening keynote where he highlighted that the UAE-India Comprehensive Economic Partnership Agreement (CEPA) has given a natural boost to key sectors such as food and agriculture products as well as gems and jewellery.

 

The CEPA Agreement signed in 2022 by the UAE and India will increase trade exchange by 120 per cent, from $45bn to $100bn and services trade to $15bn in the next five years.

 

Goyal said: 'India and the UAE are both pursuing dynamic trade and investment policies. India hopes to see its exports touch $1tn in the near to medium term.

 

'Our growing bilateral trade will play an integral role in the UAE’s efforts to double the size of its economy by 2030. The destinies of the UAE and India have been inextricably intertwined for centuries.

 

'A closer collaboration, trust and the spirit of entrepreneurship will create limitless opportunities for our economies, our industries, our cities, and our people, now and for generations to come. This is the vision that CEPA aims to turn into reality.'

 

He also highlighted the various cooperation prospects which include the rupee-dirham trade, the virtual trade corridor, the food corridor and leveraging UAE and India’s start-up ecosystems.

 

Sectors such as textiles, green energy (wind, solar and hydro), connectivity infrastructure (airports, ports and roads) as well as waste management, were also among the areas of opportunity for both countries.

 

During his keynote address, Mohammad Ali Rashid Lootah, President and CEO of Dubai Chambers, revealed that the number of new Indian companies that joined Dubai Chamber of Commerce in 2022 exceeded 11,000, bringing the total number of Indian companies registered with the Chamber to more than 83,000.

 

This reflects the strength of economic, investment and trade links between the two countries and the importance of economic partnerships in promoting future bilateral relations.

 

Lootah pointed out that the international office of Dubai International Chamber, one of the three chambers operating under the Dubai Chambers, in Mumbai plays an important role in developing mutual relations and attracting more Indian start-ups and SMEs to the emirate.

 

He confirmed that this year will see expansion in the Chamber’s Mumbai office activities to keep pace with the growing momentum in bilateral relations.

 

He added: 'Our international offices, including our office in India, work in line with the Dubai Global initiative announced by Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai and Chairman of the Executive Council, to cement the emirate’s position as a business and investment hub that attracts international investment and supports the expansion of local businesses to overseas markets.'

 

Organised by the International Business Linkage Forum (IBLF) in partnership with Dubai International Chamber the summit highlights the two nations’ bilateral relations with a focus on opportunities in manufacturing and start-ups, agritech and food processing, the future of health, and fintech and investment.

 

Dubai International Chamber seeks to attract multinational companies based in India and expand the Dubai’s trade ties with the India market.

 

Through the IBLF exclusive network of prominent personalities globally, the summit offers the chance to explore synergies, growth areas and sectors where both nations might work together for mutual benefit.

 

As both economies predict strong growth in 2023, the summit calls for exploring opportunities in new sectors, moving away from the current trading patterns to new areas, reflecting both nations’ desire to develop significant digital economies and ignite greater innovation.

 

Rajiv Podar, Chairman IBLF said: 'The bilateral trade is set to touch $88bn in 2022-23. Traditionally food and energy securities has been the prime focus between the UAE and India, however CEPA focuses also on the SME sector opening a flood of opportunities across the sectors.'

 

Dinesh Joshi, President IBLF and Chairman of SatyaGiri Group of Companies, said: 'The visionary leadership of India and the UAE has reinforced our existing relations which will have a long-lasting impact in the coming times.

 

'The signing of the CEPA in 88 days shows the commitment from both nations. The India UAE Partnership Summit aims to bring the stakeholders from both sides to develop strong synergies.'

 

While petroleum products and jewellery remain the most exported goods from India to Dubai, the summit serves to underline India’s growing expertise in fields including technology, healthcare and finance.

Food and beverages consumption and demand is increasing every day. In today’s times, when both husband and wife are working, the eating habits have changed and people depend more on frozen food.

 

Warehousing plays a pivotal role in managing and storage of food and beverages, and agriculture and food security market. As any business grows and expands, they look for more reliable and effectively organised supply chain management and warehousing services. Some people might see it as an unnecessary expense, but it saves a lot of money and boosts productivity. Depending on the type of product - dry or frozen, a warehouse has different method and technique of storing it.

 

Most companies produce goods in bulk which need to be stored and prevent them from any damages. Storing your products in warehouses reduces the risk of spoilage and contamination. Warehousing is a great way to store goods that are not needed immediately. With quality and quantity, it also looks after availability of products for the customers.

Businesses, therefore, consider warehousing as an essential tool in creating value for customers. Here are some key reasons to know why warehousing is crucial for your businesses.

 

Easy Distribution

It becomes difficult for factories to manufacture as well as store the product. When factories being far away from city and the place of consumption, the product may not get delivered on time or may be spoiled. Therefore, storing product in cold storages of warehouse near the cities helps to reduce the delivery time. Nowadays warehouses provide the service of supply too which reduces cost. Whether it is a raw material or a finished product, it comes convenient for manufacturer to deliver it to the customer fresh.

 

Inventory and cost reduction

A well-managed warehouse can provide you with a centralised tracking system for your inventory. Having an efficient warehouse system helps you in managing and fulfilling orders while reducing the order cycle time. It is therefore designed in a way that can handle all your warehouse activities with utmost precision and full-proof security. Having a just-in-time inventory increases efficiency. The cost of inventory is reduced by storing only the quantity desired to keep the inventory full. This way companies can reduce costs as well as manage the delivery of goods without hassle. With sustainable inventory management and advanced storage planning, you can store food and agricultural crops and distribute items more efficiently.

 

Solving seasonal crises

During the harvest season a lot of agricultural products are cultivated. With demand, it gets supplied but during off season the demand is high but product is not available, because of storing products in warehouse will keep the product available for a season and the problem gets solved. It makes the seasonal product available for entire year.

 

Safety standard

Food products require special handling. Warehouses follow safety standards and maintain hygiene for the products. Warehouse provides facility at each step from how the product is stored till it reaches its destination.  

 

Protected packaging is used for a smooth and safe journey on the road. Generally, companies do not have in-house storage facilities. They outsource services for advanced packaging and carrying out timely deliveries.

 

Cold storage

India is the first in fruit and second in vegetable production in the world. Having a cold goods store is the best method for preventing food damage. The storage and distribution of these fruits and vegetables is carried out in a manner where the temperature is monitored to keep them fresh and edible for a longer period of time.

 

Better customer experience

Warehousing is an important part of your customer buying experience. It ensures that the products ordered are in stock, fresh and the customers get what they have ordered. Your inventory is well managed with warehousing. With increase in online sale, customer expects fast delivery. If a customer demands goods, then warehousing ensures that the product is available for quick delivery, and also prevent product from getting lost and stolen during handling. Therefore, it can increase productivity and leave a great customer experience.

 

Security is priority

You look for security first, wherever you go. It’s the same for running a business. Warehousing protects your goods. It offers services that will store your goods at the right temperature preventing it from any spoilage. They are supervised by specialists and firefighting personnel. Products stored in warehouses are also typically insured. It ensures higher chances to receive compensation from the insurance company in case of damage, fire or theft.

 

Advancement in technology

With the help of latest warehousing technology, product can be stored in by various ways and makes it easy to identify and know their expiry date. When kept in warehouse, the shelf life of the product also increases. It provides you with the information of your product’s expiry date, which helps you to strategise your business plan before you face any loss.

 

Vision 2030

India’s population is expected to rise to 1.515 billion in 2030. With the rise of population, the demand for fruits and vegetables will also rise. And as India is one of the leading countries in production of fruits and vegetables, for the supply to work and fulfil the demands smoothly, logistics and warehousing needs to be upgraded. Warehousing will nearly become a billion-dollar industry in the future. The demand is not only in metro cities but also in tier-II and tier-III cities. India will see enhanced growth in the coming years for warehousing services.

 

Conclusion

Warehousing is the most important component of supply chain management. With effective inventory and risk management and advanced technology, increase your business productivity in time. Food warehouses which are managing fresh food are now becoming vibrant, efficient centre for manufacturers. Fruits, vegetables and other agricultural products often have a short shelf life which is why they need to be transported with speed. Hence, it is one of the few industries that rely heavily on warehousing services.

In an archetypal farm-to-fork story, the Uttar Pradesh vegetables are spicing up the Arabic food and cuisine in the faraway Gulf countries.

 

Boosting the state’s farm value chain, the export of vegetables from landlocked UP to the Arabic world is rising even as the government is now looking to tap the extensive European market as well.

 

According to the state government, about 160,000 tonnes of vegetables worth Rs 161 crore were exported via air route to the Gulf in 2021-22.

 

In the current financial year 2022-23, vegetable consignments totalling over 100,000 tonnes and valued at Rs 112 crore have so far been exported to the Arabic countries from UP.

 

Now, the state is looking to increase the shipments of a much larger basket of horticultural crops comprising fruits and vegetables to the Gulf region; thus provide a robust and remunerative price mechanism to farmers.

 

Most recently, a consignment of fresh vegetables took off from the Lucknow airport to Dubai.

 

'We are in the process of tapping newer markets not only in the Gulf region but European countries too,' UP agriculture minister Surya Pratap Shahi said adding efforts were being made to ensure that at least four vegetable consignments were sent from Lucknow every week.

 

UP is among the top agricultural, horticultural and dairy producers in India with leadership position in a variety of crops including sugarcane, potato, milk etc.

 

Rising farm exports would not only give a much needed modern fillip to the largely agrarian economy of UP, but supplement the overarching goal of doubling the rural incomes in near future as espoused by the Yogi Adityanath government.

 

Meanwhile, four modern pack houses are being developed in Lucknow, Sitapur, Amroha and Varanasi to boost the export of locally produced horticultural crops to the domestic and international markets.

 

'To facilitate better prices to farmers, the state has drafted a composite action plan to encourage the production of high quality fruits and vegetables to meet the stiff global export standards. This will catalyse farm exports from UP going forward,' the minister underlined.

 

Moreover, the state is taking steps to harness Varanasi for exporting vegetables to Europe, and for this purpose a quality assurance lab is set to be operationalised in the temple town.

 

The government has exhorted farmers to cultivate crops to cater the lucrative export markets, and promised to provide all possible assistance to improve the harvest quality for higher farm income.

Within two-and-a-half years of the implementation of the Agriculture Infrastructure Fund (AIF), the scheme has mobilized more than Rs.30,000 crore for projects in the agriculture infrastructure sector with a sanctioned amount of Rs.15,000 crore under AIF. With support of 3% interest subvention, credit guarantee support through CGTMSE for loan of upto Rs.2 crore and facility of convergence with other Central and State Govt. Scheme, AIF is providing all around financial support to the farmers, agri-entrepreneurs, farmer groups like Farmer Producer Organisations (FPOs), Self Help Groups (SHGs),  Joint Liability Groups (JLGs) etc. and many others to create post-harvest management infrastructure and build community farming asset throughout the country.

 

Understanding the demand supply gap between the need of the consumers and supply of primary processed vegetables from the farmers, Yogesh CB from Mandya district of Karnataka was looking to setup a primary processing centre for vegetable. While looking for the support available from Government, he came across the AIF scheme in the year 2020. He applied for a loan of Rs.1.9 cr. on AIF portal, which got verified by the Ministry of Agriculture and Farmers Welfare and sanctioned by Bank of India very quickly in December 2020.  He was able to ground his vision with the help of AIF and Ariant Veg Private Limited came into the existence. Through the interest subvention provided under AIF he was able to secure the finance at an effective Rate of Interest (RoI) of just 5.45% which is much lower than the open market rate. At present, Ariant Veg supports more than 250 local farmers by providing them seeds and the technology to grow quality vegetables, then they collect the yield from the farmers at a fair price which is then cleaned, sorted, graded, and packed in the processing centre before reaching to the end consumer on a daily basis. 

 

Similarly, Anand Patel, a farmer from Jabalpur district of Madhya Pradesh realized the importance and need of mechanization in agriculture especially for small and marginal farmers for whom agriculture machineries are not affordable. He then established a hi-tech hub where agriculture machineries are provided on the rental basis to the local farmers. This Hi-tech Hub has 12 Farm machinery including combine harvester, thresher, laser land leveler, tractors, zero till seed cum fertilizer drill, mulcher etc. that costs around Rs. 60.82 Lakhs which seemed a lot for a farmer like Mr. Patel. But through Agriculture Infrastructure Fund and its unique feature of convergence with other Central Govt. and State Govt. schemes, Mr. Patel was not only able to secure a loan of Rs. 45.62 Lakhs at an interest rate of just 5.4% but also got the benefit of capital subsidy of 40% of the total project cost under Sub-Mission on Agriculture Mechanization (SMAM) scheme of MoA&FW. Now he is providing services of these machines to more than 100 small and marginal farmers which helped them in saving a lot of effort, time and money.

 

Yogesh and Anand are two of more than 20,000 beneficiaries of AIF, whose dream to diversify their profile and take a forward leap in agricultural development has come true through AIF support. AIF is silently changing the landscape of Indian Agriculture through creation and modernization of much needed agriculture infrastructure. These infrastructure projects are helping in reducing post-harvest losses, modernizing agriculture package and practices and moreover helping farmers in better price realization of their produce.

 

Agriculture Infra Fund (AIF) is a financing facility launched on 8th July 2020 under the visionary guidance of the Prime Minister Shri Narendra Modi, for creation of post-harvest management infrastructure and community farm assets. Under this scheme, Rs 1 lakh crore is to be disbursed by financial year 2025-26 and the interest subvention and credit guarantee assistance will be given till the year 2032-33.

 

In order to create awareness about AIF amongst various stakeholders, MoA&FW has been organising multiple conclaves and workshops; Images clockwise, (1) Joint Secretary , DA&FW, Incharge of AIF scheme, Shri Samuel Praveen Kumar addressing bankers at National AIF Bankers’ Conclave titled  ‘Bankers are Anchors’, (2) Maharashtra State AIF Conclave at Pune, (3) AIF workshop for faculties of bank training institutions and (4) Uttar Pradesh State AIF conclave at Lucknow

India’s overall oilmeal exports so far during the current financial year – April to December – were 60 per cent higher year-on-year at around 2.82 million tonnes, data compiled by vegetable oil industry body, The Solvent Extractors’ Association of India (SEA), showed.

 

Oilmeals are basically the residue left over after the extraction of oil from oilseeds, and they are widely used as livestock feed the world over.

 

Till November, the total exports were at 2.39 million tonnes.

 

In December alone, exports of India’s oilmeal were provisionally reported at 4,33,430 tonnes, up 153 per cent from 1,70,869 tonnes the same month last year, data showed.

 

Notably, the country’s rapeseed exports during the first nine months of the current financial year set a new record and broke the earlier highest record export of 1.24 million tonne in 2011-12. So far in 2022-23, the total rapeseed exports were at 1.67 million tonne.

 

'Currently India is the most competitive supplier of rapeseed meal to South Korea, Vietnam, Thailand and other Far East Countries at USD 255 per tonne FOB (free on board) India while rapeseed meal Hamburg ex-mill quoted at USD 405 per tonne,' SEA said in a release earlier this week.

 

Also, the release said the better price realization from rapeseed (mustard) oil and export of rapeseed meal not only supported the domestic price of mustard seed but also encouraged larger sowing area under the mustard crop during the current rabi season.

 

India sowed mustard crop across 97.0 lakh hectares compared to 90.0 lakh last season, it said.

 

Export of soybean meal too saw a revival.

 

'With fall in local soybean price to the level of Rs 5,650 per quintal, local soybean meal price has also fallen to Rs 42,800 per tonne from the level of Rs 53,000 tonne in June 2022; which has made (its) export attractive,' SEA said.