Urging farmers to adopt organic farming on a larger scale, governor Acharya Devvrat on Tuesday said that this will change the country’s destiny. Speaking to farmers at Anand Agricultural University, the governor said not only will this reduce the dependence on chemicals fertilizers, it will give farmers higher returns for their crops.

 

The governor, who has been leading a sustained campaign to promote organic farming, said possession of one cow can help farmers take up natural farming on 30 acres of land and farmers who have 30 cows can take up organic farming on one acre.

 

'There is a need to take up organic farming on mission mode. It will not only double but even triple farmers’ incomes. There is a misconception among farmers that there will be a reduction in output if they give up chemical fertilizers and adopt organic farming,' the governor said.

 

A large number of farmers from across the state also joined the interaction virtually, a release said. Devvrat gave a detailed presentation to farmers on the requirements of organic farming, adding that there are hundreds of farmers in Gujarat who have adopted organic farming and have seen a reduction in input costs .

The Director-General of Foreign Trade (DGFT) has extended the ban on palm oil imports through Kerala ports until further orders. It has also extended import duty waiver on refined palm oil and palmolein oil.

 

Both the duty waiver and the ban on imports at Kerala ports were to end on December 31. The Government banned the import of palm group of oils through Kerala ports in 2007 to protect coconut growers.

 

The extension of the ban on palm oil imports reportedly comes on the Coconut Development Board’s request and various farmer organisations, fearing increased arrivals, especially when Indonesia lifted restrictions on palm oil imports. This may further depress coconut oil prices in the domestic market now ruling at Rs.139.

 

Stagnant consumption

Official sources said the Kerala’s annual edible coconut oil consumption is around 3 lakh tonnes in the last few years. However, consumption is almost stagnant even at low prices against the production of 5.56 lakh tonnes in 2021-22.

 

The Board has occasionally taken up marketing campaigns to increase consumption, citing its health benefits. However, industry sources pointed out that, of late, there was no generic promotion from the Board.

 

Cochin Port Users Forum had urged the DGFT to lift the palm oil import restrictions to shore up the port’s revenue. They pointed out that the government implemented the ban to curb the sliding of coconut oil prices with no desired results.

 

However, industry sources noted that there is no point in continuing with the ban through Kerala ports, as imported palm oil is still flowing freely to the state by road after unloading it at Tuticorin and New Mangalore ports.  

The Central Bank of Egypt (CBE) abolished a February 2022 circular requiring the use of letters of credit for imports, and allowed the use of collection documents instead, Arab Finance reports.

 

The CBE in a late December circular scrapped the letter of credit which provides an irrevocable guarantee to the exporter that the importer’s bank has to remit the dues to the exporter.

 

The requirement is deemed too demanding because it incurs a higher cost and longer time, with payments taking place in advance.

 

In a documentary collection transaction, the importer’s bank holds no such responsibility, as it allows direct transactions between importers and exporters with the bank only acting as an intermediary.

 

Under the CBE’s regulations, Arab Finance notes, importers’ collection documents were not accepted by banks starting March 1st, 2022, and only letters of credit were approved for imported shipments.

 

Importers however are given waivers on the imports of wheat medicines, vaccines, and their raw ingredients.

 

The waiver also covered imports of tea, meat, poultry, fish, oil, powder milk, baby formula, fava beans, lentils, butter, and corn.

Under the leadership of Chief Minister Shivraj Singh Chouhan, the Madhya Pradesh government took unprecedented decisions in the year 2022 in the interest of the farmers of Madhya Pradesh. These were in line with Prime Minister Narendra Modi’s dream of a Atma-nirbhar Bharat.

 

These decisions provided more than double the profit to farmers. We can say that the year 2022 fulfilled the saying 'Na Bhuto Na Bhavishyati' for the farmers. The state government received ‘Krishi Karman Award’ for the 7th consecutive time, along with ‘Best Performing State’ for maximum utilization of agriculture infrastructure fund, ‘Best Emerging State’ in Millet Mission Scheme, and ‘Excellence Award’ in Pradhan Mantri Fasal Bima Yojana.

 

An important decision was taken to benefit the farmers of forest villages in the state through the Pradhan Mantri Fasal Bima Yojana. The government got the forest villages included in the revenue villages. With this, the farmers started getting the benefits of the crop insurance scheme. To enable maximum number of farmers to take advantage of the crop insurance scheme and to insure their various crops, the government has made the criterion of notified crop area to 50 hectares instead of 100 hectares. Lakhs of farmers of the state are being provided annual assistance of Rs. 10 thousand by combining Rs. 4 thousand of Mukhyamantri Kisan Kalyan Yojna with Pradhan Mantri Kisan Samman Nidhi.

 

It was decided to purchase summer moong from the farmers in the state at the support price, increasing the income of the farmers. The crops like gram, lentils, and mustard were procured along with the procurement of wheat. Due to this, the farmers got an additional benefit of about 10 thousand crore rupees. The government procured Tivda mixed gram on support price in 8 districts. The state government’s decision of ‘As much procurement as production’ increased the procurement capacity of gram (chana) and farmers got the benefit of an additional Rs. 750 crore. This year, the maximum daily procurement limit of 25 quintals for farmers in the Samitis was abolished.

 

A crop diversification scheme was implemented in the interest of farmers to encourage the production of profitable crops in place of traditional crops. The government is also committed to taking forward natural farming in the state in mission mode. Every farmer is being encouraged to do natural farming on some part of his land. The government has decided that natural farming will be done in more than 4 lakh 45 thousand hectare area on the banks of river Narmada. 60 thousand farmers have registered for natural farming in one lakh 86 thousand-hectare area. The state government has also decided that to encourage the farmers to do natural farming, a grant of Rs. 900 per month will be given for the rearing of indigenous cows.

 

Giving priority to the quality control of agricultural inputs in the interest of the farmers, the government also took strict action this year against the sellers of non-standard seeds, fertilizers, and pesticides. This year, the action was taken to suspend and cancel the licenses of 136 seed sellers, 120 fertilizer sellers, and 14 pesticide sellers. FIR was registered against 39 sellers of seeds, fertilizers, and pesticides.

 

With the special efforts of the state government, the regional office of APEDA was approved and made operational in the state. This office is located at Mandi Board Bhopal (Kisan Bhawan). This is facilitating the farmers of Madhya Pradesh to export their agricultural products. Along with this, they are also getting the maximum benefit from their produce. With the help of APEDA, Chinnor rice of Balaghat got success in getting a GI tag.

The FSSAI has issued a draft with respect to the dimensions of vegan logo, which has been made mandatory under the labelling requirement of Vegan Regulations.

 

'The seller of vegan food either exclusively or as part of retail merchandise shall store and display such food in a manner distinguishable from non-vegan food,' reads the vegan regulation adding that every package of vegan foods, after the approval, shall carry the logo as specified by the FSSAI.

 

The FSSAI has sought comments from the stakeholders on the draft.

 

According to the vegan regulations, 'vegan food' means the food or food ingredient, including additives, flavourings, enzymes and carriers, or processing aids that are not products of animal origin and in which, at no stage of production and processing, ingredients, including additives, flavourings, enzymes and carriers, or processing aids that are of animal origin have been used.

 

Every package of vegan foods, after the approval, shall carry the logo as specified below

Union Budget 2023-24 may focus on coarse grains or millets as means of sustainable cultivation that can raise income of small farmers in arid regions besides providing food and nutritional security globally, people familiar with the development said.

 

A roadmap to promote millets is expected in the Budget as Prime Minister Narendra Modi wants India, the world’s largest producer of coarse grains, to take the lead in making 'the superfood' a mass movement, they added requesting anonymity.

 

India, along with the world, is celebrating the International Year of Millets, 2023, which has been declared by the UN based on a proposal moved by India and endorsed by 70 nations.

 

'It is PM Modi’s effort that the UN accepted 2023 as the international year of millets, a proposal of India that was endorsed by over 70 countries. It is something which is part of Indian civilisation with potential to address global scourge of hunger and malnutrition,' one of the people, who works in an economic ministry said.

 

There is a need to focus on promoting coarse grains such as jowar (sorghum), bajra (pearl millet), ragi (finger millet), sanwa (barnyard millet), kangni (foxtail millet), chena (proso millet), kodo (kodu millet), kutki (little millet), and kuttu (buckwheat), a second official working in a different ministry said. 'In fact, proportion of coarse grains under National Food Security Act (NFSA) may go up as many states have specifically asked for millets – for example Kerala sought a supply of about 1,000 tonnes of ragi,' he said adding that the Union Budget may nudge various central and state ministries and departments to promote millets.

 

The demand for coarse grains is rising globally due to their health benefits and this opportunity could be tapped by Indian farmers and start-ups as highlighted by the Prime Minister in August 2022.

 

'For our small farmers, millets are especially beneficial. Millet hay is also considered the best fodder. Nowadays, the young generation is much focused on Healthy Living and Eating. Even if you look at it this way, millets contain plenty of protein, fibre, and minerals. Many people even call it a superfood,' the Prime Minister said in his radio programme ‘Mann ki Baat’ in August 2022.

 

'Millets have many benefits, not just one. Along with reducing obesity, they also reduce the risk of diabetes, hypertension and heart related diseases. Along with that, they are also helpful in preventing stomach and liver ailments… Millets are also very beneficial in fighting malnutrition, since they are packed with energy as well as protein,' he added.

 

According to government data, the production of millets in India has increased from 14.52 million tonnes in 2015-16 to 18.02 million tonnes in 2020-21. The global millets market is expected to have a CAGR (compound annual growth rate) of 4.5% between 2021 and 2026, the second official said.

 

Millets are covered under the minimum support price (MSP) mechanism and part of the public distribution system (PDS). There are over 250 start-ups working on millets and they are supported by the central government, he added.

 

Speaking at the ‘Millets-Smart Nutritive Food’ Conclave on last month (December 5), commerce minister Piyush Goyal said: 'We must work together to mainstream the millet story and make millets globally acceptable to solve problems of malnutrition and starvation that many parts of the world continue to face.'

 

On December 6, Prime Minister Narendra Modi called for crop diversification and millet farming to enhance global food security and make agriculture climate resilient in a message delivered during the opening ceremony of International Year of Millets in Rome, the headquarters of the UN’s Food and Agriculture Organisation, an official statement said.

Indian sugar exporters have almost exhausted the 6 million tonnes (mt) export quota allocated by the Centre for the current sugar season (October 2022-September 2023), striking to sell nearly 5.5 mt by December 31. 

 

'Deals to export 5.3 mt to 5.5 mt have been signed for sugar. Only a small quantity is left now for shipments,' said Rahil Shaikh, Managing Director, MEIR Commodities India Pvt Ltd. 

 

'The 6 mt export quota has almost been sold. The Centre may have to come up with a second tranche of allocation to allow additional volume,' said Praful Vithalani, Chairman, All India Sugar Traders Association (AISTA). 

 

Surplus production

In its weekly sugar report, UK-Based Marex Group said only 0.7 mt remained to be sold out of the 6 mt export quota. 'Although India’s exports will be down, the net result will be to produce a 3-5 mt surplus in 2023,' it said. 

 

'The going is good on sugar exports. About 1.5 mt have been physically shipped out. The movement was affected after some deals were renegotiated since some sellers defaulted,' said an industry source, not wishing to be identified.

 

'Almost all of the deals signed by December 31 will be exported by March 31,' said Shaikh. 

 

While white sugar has been contracted at over $530 a tonne, raw sugar has been sold at $510 with a 200-point premium for consignments with 96 per cent polarisation. 

 

Key buyers

London white sugar futures are currently quoted at $547.30 a tonne for delivery in March, while raw sugar futures on InterContinental Exchange, New York, are ruling at 18.59 cents a pound (?34,250/tonne) for March.

 

MEIR Commodities’ Shaikh said Bangladesh, Iran and Indonesia have emerged as the biggest buyers of Indian sugar this season. 'Some consignments are heading to Dubai too,' he said. 

 

Marex said parity for Indian sugar exporters was 'sky high'. Domestic sugar prices are currently ruling at ?3,200-3,250 a quintal, 

 

Trade sources said reports of Indonesia wanting to import 3.5 mt of raw sugar was keeping the market interested. 'We have nothing more to give after exhausting the export quota,' said AISTA’s Vithalani. 

 

Export cap

Trade sources said the Centre may review the sugar production scenario after January before deciding on allowing further exports. According to the Indian Sugar Mills Association (ISMA), sugar production is projected to be a record 36.5 mt this season against 36 mt last season. The output is up 3.5 per cent in the first three months, ISMA said. 

 

'Production of sugar is good this season,' said Vithalani. 'The yield got affected due to rains in November-December but the situation is neither alarming nor worrisome,' said Shaikh. 'The situation will be clear in a week to 10 days time,' he said. Trade sources said production in Uttar Pradesh has also been affected. 

 

The Indian government capped sugar exports at 10 mt last season after record shipments raised fears of a domestic shortage. In order to ensure ample stocks during the festival season, it capped the exports from June 1, 2002. Still, it allowed an additional 1.2 mt, taking total shipments to a record 11.2 mt.

 

In view of last season’s experience, the Centre permitted sugar exports from November 2022, only fixing a 6 mt quota. It has also stipulated that the shipments must be done by May 31. 

 

Besides sugar production being estimated at a record high, about 4.5 mt of sugar is being diverted for the production of ethanol, a new high. 

 

ISMA said there is scope for the export of 9 mt of sugar this season which would leave 5.5 mt of closing stocks, the same as last season after domestic sales of 27.5 mt. 

The Centre has procured 68 per cent, as of December 31, of the targeted 521 lakh tonnes (lt) of rice to be procured through the Food Corporation of India (FCI) and other government agencies during October-March this crop year to June. The Centre may have to procure additional quantities in Chhattisgarh, Madhya Pradesh and Odisha to offset an expected shortfall in Uttar Pradesh, Telangana, Tamil Nadu and Bihar.

 

Amid depleting stock of rice in Central Pool and drought in some States, achieving the target is important for the Government to continue its grains distribution for various welfare programmes and under the National Food Security Act. The development is important in view of fears raised over foodgrain stocks in the country. Rice stock in the Central Pool was 115.42 lt as of December 1, 2022 against 213.03 lt year-ago.

 

Up in Haryana, down in Punjab

Rice procurement has reached 355.9 lt until December 31 in the ongoing marketing season that began on October 1. This is is 11 per cent higher than 320.7 lt during the year-ago period, the latest official data show. As many as 63.9 lakh farmers have got the benefit of selling at minimum support price (MSP). Procurement in Punjab and Haryana have been completed with 121.9 lt and 39.5 lt, respectively. While the purchase in Punjab is lower by 3.3 lt (down by 2.6 per cent), it is 3 lt more (up by 8.2 per cent) in Haryana.

 

Procurement in Tamil Nadu was nil during December against 1.2 lt a year ago and 82 per cent lower in November whereas it was over four times higher in October from the year-ago period. The target in Tamil Nadu is 19.9 lt from the kharif-grown rice and it is 22 per cent more at 5.8 lt until December 31.

 

'In the current season, paddy faced an unprecedented moisture problem in Tamil Nadu. It impacted public procurement in the last two months. Also because the demand for paddy was higher from Karnataka and Andhra Pradesh private traders, farmers preferred to sell them in view of higher price and less quality problems,' said trade policy expert S Chandrasekaran. The delta districts had excessive and continuous rainfall, he added.

 

UP scenario

Mandi prices of paddy in Tamil Nadu have increased to Rs.2,028/quintal currently from an average of Rs.1,909 in October whereas the minimum support price (MSP) is Rs.2,060/quintal for Grade A variety. The bulk of government purchase (over 85 per cent) are Grade A variety of paddy.

 

In Uttar Pradesh, 27.6 lt have been procured against 28.3 lt a year ago, down by 2.5 per cent. However, the absolute fall has widened to 30,000 tonnes in December from about 11,000 tonnes in October. Traders said procurement in the western region will drop further while eastern parts may match last year’s level. The target in UP has been fixed at 40 lt of rice and procurement will continue until January 31 in the western region and up to February 28 in the eastern parts.

 

In Telangana, the procurement has lagged behind by 7.2 per cent at 37.4 lt until December 31 against 40.3 lt a year ago and nearly 75 per cent of the kharif target has been purchased. Officials said procurement in Telangana has slowed down and it registered a 28 per cent decline in December, whereas there was a 49 per cent jump in November. As procurement will end this month, it is unlikely to see any major improvement, officials said adding that a 2-3 lt shortfall against the target of 50 lt is likely.

 

Rise in other purchases

Bihar is another State where procurement, though up so far, may not able to achieve target of 30 lt this year due to drought. The current procurement, started in November and to continue until March, is at par with 8.5 lt of year-ago level.

 

On the other hand, Chhattisgarh, Odisha and Madhya Pradesh reported 3 per cent, 62 per cent and 65 per cent jump in procurement during December. Chhattisgarh has reported a 48 per cent increase this season at 52.6 lt so far, mainly due to the purchase being advanced by a month. A relaxation by the Centre to allow purchase beyond the 61 lt target may help the State to contribute 70-75 lt to Central Pool, sources said.

To familarise participants and enhance awareness amongst them on export opportunities, Assam Trade Promotion organisation (ATPO) on Tuesday organised a seminar on 'Potential for Export with Special reference to Bangladesh and Bhutan' at Maniram Dewan Trade Centre during the ongoing ATPO International Winter Expo' 2022.

 

ATPO, a Section 8 company under Industries, Commerce & PE Department, Govt of Assam, is organising the 'ATPO International Winter Expo' 2022' at Maniram Dewan Trade Centre, Betkuchi, Guwahati from December 23, 2022 to January 5, 2023, in association with National Small Industries Corporation (NSIC) and Industries, Commerce & Public Enterprise Department, Govt of Assam.

 

 • ‘Food Processing Week 2.0’ organised by the Ministry of Food Processing Industries, under the ‘Kisan Bhagidari Prathmikta Hamari’ Campaign by the Ministry of Agriculture & Farmers Welfare under the 'Azadi Ka Amrit Mahotsav' umbrella.

    • Virtual Inauguration of 75 Food Processing Projects by Union Minister for Food Processing Industries Pashupati Kumar Paras.

 

 

B. Creation of Infrastructure Facilities

    • A total of 112 food processing projects were completed/operationalised covering - Mega Food Park:1, ColdChain:15, Units:71, Agro-Processing Clusters(APC):4, Food Testing Laboratories:20, Backward & Forward Linkage projects:1

    • The 112 completed projects have created additional processing and preservation capacity of agricultural produce of 23.08 lakh MT per annum. 15 cold chain infrastructure projects created additional milk processing and storage capacity of 23.30 lakh litre per day and 9.25 MT/hour of IQF (Instant Quick Freezing) of fruits and vegetables.

    • The 112 completed projects leveraged private investment of Rs 706.04 crore and generated direct and indirect employment for 25,293 persons.

C. Approval of New Infrastructure Facilities

    • A total of 190 food processing projects were sanctioned viz; Agro Processing Clusters:23, Cold Chain:33, Units:120, Food Testing Laboratories:12 and Mega Food Park:2

    I. Aatmanirbhar Bharat Abhiyan

    II. Production Linked Incentive Scheme (PLIS) for the Food Processing Industries

 

As part of Prime Minister’s announcement of Aatmanirbhar Bharat Abhiyan, the Government, on 31st March, 2021, approved a Central Sector Scheme, namely 'Production Linked Incentive Scheme for Food Processing Industry” with an outlay of Rs 10,900 crore to be implemented for a period of seven years from 2021-2022 to 2026-27.

 

The primary objectives of this scheme are to support creation of global food manufacturing champions; support Indian brands of food products in the international markets; increase employment opportunities of off-farm jobs; and ensure remunerative prices of farm produce and higher income to farmers.