With the whole world excited about Qatar FIFA football world cup, Odisha has special reason to be happy. Eggs produced in Odisha find their way to plates in Qatar. To meet the sudden demand of eggs in view of the FIFA World Cup, Qatar's egg imports have jumped to more than double. Ovofarm, one of India's leading egg producers, have pitched in to meet the spurt of demand. According to Soumendra Mishra founder and MD of Ovofarm, it is a first from Odisha and a matter of pride that Odisha produce has found its way to a global event like FIFA World Cup. It goes on to prove that the quality of our product, the systems and processes we follow are world class.

 

India has been a big exporter of Eggs to Qatar and only a selected few farm of the country having world class systems, processes producing quality eggs gets the opportunity to meet the requirement. With the ongoing FIFA world cup, the egg exports from India to Qatar has increased manifolds and Ovo farm being one of a leading producer of international standard eggs in India has exported big consignment of eggs in November month this year.

 

Known for its best quality, premium and nutritious eggs, Ovo Farm Pvt Ltd. is one of the most advanced layer farm with fully automated state of the art technology in India located at Balangir, Odisha. Through its rich experience in the poultry industry for over two decades, Ovo Farm has successfully identified and adopted the most advanced technology, processes and global best practices in their farm leading to produce export quality best eggs. Ovo Farm is one of the most advanced suppliers of High-Protein, Nutritional eggs in India and abroad. Ovo Farm eggs have been thoroughly tested to ensure that they meet the highest standards of quality assurance according to the European standards. Ovo farm produces around a million eggs per day and having its sales operation across East India.

 

Ovo farm holds a significant market share in premium quality packaged egg industry as well with its brand 'Kenko'. Kenko eggs are available at around 400 general retail counters, all big format modern trade stores and ecommerce platformsin Bhubaneswar, Kolkata and Guwahati.

 

MTU 1010 and NLR 34449 sold for between Rs 15,000 and Rs 15,500 per putti (one putti equals 850 kg). Following a bleak situation a couple of seasons ago when farmers in the district were forced to take a partial crop holiday due to a depressed market, the current increase in demand and price has brought paddy cultivation back into farmers' favour this winter.

 

'Overcoming obstacles in marketing paddy is a thing of the past. There is no need for us to swarm the Rythu Bharosa Kendras for market intervention and wait for payment for months,' as per a group of farmers in Kovur village.

 

According to Andhra Pradesh Federation of Farmers' Association president Ch. Koti Reddy, progressive farmers who chose low glycemic Telangana sona (RNR 15048) received a premium price of 20,000 per putti.

 

'Even if the moisture content exceeds the Food Corporation of India's 17% limit, traders obtained the produce directly from farmers,' he explained.

 

Millers took 10% more quantity last winter due to higher moisture content, forcing them to part with paddy at as low as 12,000 per putti. 'However, thanks to the current high demand, we can make up for the losses incurred during the previous rabi,' they added.

 

According to Agriculture Nellore Joint Director G. Sudhakar, conditions are favourable for achieving a paddy coverage of 3.69 lakh acres during rabi, with Somasila brimming with water and improved market conditions.

 

'Over 45,000 acres of paddy seedlings have been transplanted so far. The most preferred varieties are NLR 34449 and BPT 5204,' Agriculture Assistant Director A. Narsoji Rao informed reporters.

 

During the previous rabi, 5.71 lakh acres of paddy were planted in the undivided SPSR Nellore district. Parts of paddy-growing areas have now been incorporated into the Tirupati district.

Turkey’s state grain board TMO has started making provisional purchases of wheat in an international tender for 455,000 tonnes which closed on Tuesday with about 125,000 tonnes initially bought, traders said.

 

More purchases are expected in stages during Tuesday. Imports and wheat already in warehouses in Turkey can be offered in the tender.

 

The tonnages purchased in TMO’s tenders are provisional and still subject to final confirmation in coming days. Purchases can be reduced or cancelled completely.

 

Red milling wheat is sought for shipment to a series of Turkish ports in sought in two periods, Dec. 7, 2022, to Jan. 9, 2023, and between Jan. 1 to Feb. 17, 2023.

 

Traders reported these provisional purchases in the import tender with port of unloading/delivery, tonnes sold, seller, price in dollars a tonne c&f or for delivery from warehouses in Turkey:

 

The tender continues an active period of grain importing by Turkey. Turkey is also tendering this week to buy 495,000 tonnes of animal feed barley.

 

Turkey is among large grain importers benefiting from the agreement earlier in November to continue the safe shipping corridor for Ukraine’s grain exports.

India’s sugar sector, often plagued by volatility, is set to rule the world export market for the second year in a row.

 

In the 2021-22 sugar season (October to September), the country exported a record 11.3 million tonnes. The government said this earned the country about Rs 40,000 crore worth of foreign exchange. Buoyed by this trend, the government on November 5 announced that mills can export 6 million tonnes (mt) in SS23, which means by May 2023. However, industry observers say, the country has an opportunity to export 9 mt.

 

The sugar bonanza has been going on for a while. In the 2020-21 sugar season, India exported 7.2 mt, 22% up from 5.9 mt in 2019-20. The country's export in 2019-20 was up 55%, from 3.8 mt in the 2018-19 season.

 

The exports have grown 291% from FY 2013-14 to FY 2021-22, according to a Commerce Ministry release in April.

 

Khushbu Lakhotia, Associate Director, India Ratings & Research (Ind-Ra), says India has emerged as a leading exporter of sugar in the past few years, accounting for over 10% of the global trade of 55-65 mt.

 

This trend has emboldened industry stakeholders to push the envelope further.

 

The estimate of 9 mt was arrived at by weighing many aspects, say officials of the Indian Sugar Mills Association (ISMA). Sonjoy Mohanty, the Director-General of the association, explains how they did the maths.

 

The current year’s opening balance was 5.5 mt, and the industry is expecting 36.5 mt of sugar production in the current season (up to September 30, 2023). 'Our estimate for domestic consumption is around 27.5 mt, which means around 9 mt of sugar is excess. We can export that. So, we have requested the government to allow us to export 9 mt of sugar,' Mohanty says.

 

Industry observers point out that this would earn the country a substantial chunk of foreign exchange and give us an enviable spot in the world sugar market.

 

The Ministry of Commerce and Industry did not respond to queries while this story was being published.

 

International Factors

India is already the world’s biggest producer of sugar and the second biggest exporter. It has emerged as a leading exporter of sugar in the past few years, accounting for over 10% of the global trade of 55-65 mt. Industry officials say the industry's robust performance was also aided by the lower exports from Thailand and weather issues in Brazil, driving international prices to multi-year highs. Indian sugar is highly sought after in many Asian, African, and Middle Eastern countries. It faces stiff competition from Brazil, which remains the largest exporter of the commodity and has 35-45% of the global trade.

 

However, the situation could become favourable for Indian exporters as Brazilian sugar supplies are likely to be delayed, chiefly due to lower output and other factors, according to various estimates.

 

In May, Brazilian sugar mills reportedly cancelled some export contracts and diverted the output to ethanol, as high energy prices made that more profitable. Besides this, heavy rains in the country’s cane belt caused a sharp fall in the crushing in September, said a Reuters report quoting Brazilian Sugarcane Industry and Bioenergy Association. This led to a 27% decline in production. Adverse weather such as frost and drought had affected sugar output in the South American nation last year as well. This gave Indian exporters an advantage last year and hopes of more gains this year.

 

ISMA remains bullish on exporting more this year, too. It points out that Brazilian supplies will hit the global market by May next year, as the season there begins in April and goes on till March. In the current year (up to March-April 2023), Brazil’s production will be around 32 million tonnes, the apex body says. This is the same as last year.

 

Promising Signs

Studies indicate India can gain a lot in such a situation. The country’s sugar exports can reach 10 million tonnes in SS22 on lower output in Brazil, according to a report by Ind-Ra in May. It added that the new opportunity gap could result in India’s share rising to around 15% in the world sugar market.

 

Surendar Singh, an Associate Professor at the FORE School of Management, says the situation gives Indian mills a clear advantage. 'There is a relaxation in sugar exports and the world's largest producer and exporter of sugar, Brazil, is facing multiple challenges. Covid restrictions and lockdowns in many parts had led to a significant drop in sugarcane sowing. Back-to-back droughts for two years have severely impacted the newly planted fields. This affects supply from Brazil.'

 

Mohanty is confident the global situation will allow them to export 6 million tonnes by the time Brazilian supplies hit the global market. 'In India’s SS21-22, at the end of April, over 7 mt of sugar was exported. By March, 6 mt had already been exported. So, this time, achieving such numbers is very much possible. Also, we get to hear from informal reports that contracts worth Rs 32-40 lakh have already been inked by Indian players in the international market. By March or April, we can achieve a big number.'

 

Based on the previous season’s export figures and the unfulfilled demand thereafter, industry observers say we have already met the target in terms of promises. Well-established exporters with bases in other countries would have already booked half or more of the quota, says a Mumbai-based B2B exporter and intermediary active in sugar exports.

 

Traders are rushing to book export deals before the output arrives in the global market, confirms Vijay Kalantri, Chairman, MVIRDC World Trade Center Mumbai. He asserts they are expecting a record production of over 40 million tonnes this season.

 

The size of the global sugar export opportunity for India is at least 4.5 mt during January-March 2023 (based on last year’s export by Brazil). For the entire year, the export opportunity is 24.5 mt, he says.

 

Singh of the FORE School of Management also says he has heard about Indian suppliers getting orders in advance.

 

Play to the Strengths

Irrespective of all these, there are a few factors that make Indian supplies cost-effective in the global market. The country’s sugar exporting community has not seen any significant change and so there is some stability there. 'Compared to Indian supplies, Brazilian supplies are competitive only when bulk procurement contracts are closed. The minimum quantity should be 12,500 mt monthly for annual contracts. Indian sugar is sold as container loads, which means the price is not dependent on a fixed quantity and can be shipped in smaller quantities, as opposed to Brazilian exports. This supports micro and small global importers and fulfills a larger demand base,' says the Mumbai-based sugar intermediary, who requested anonymity.

 

In the sugar export policy for 2022-23, the government asserts that it has announced a mill-wise export quota for all sugar mills with an objective system based on the average production in the past three years and average sugar production of the country in the past three years. The government’s rationale for having a tightly controlled export policy is that it ensures price stability in the sector. By restricting sugar exports, domestic prices will remain under control and not see any major inflationary trends.

 

But stakeholders should also be aware of global factors that can also affect exports. The way the government controls the sugar market can have some ramifications for exports.

 

According to Harsh Wardhan of the Indian Council for Research on International Economic Relations, government policies can cut both ways. The main priority is meeting domestic demand and so the slant is in that direction. So high government intervention can hurt market-driven exports. Exporters are at the mercy of policymakers and the quota that is decided by the government. This makes it difficult for exporters to respond to market dynamics and swiftly to cater to demand-supply gaps in case of events such as a delay in Brazilian crops, he says.

 

Also, India’s sugar price is usually higher than the international price when compared with prices of Brazil and Thailand stocks.

 

Industry observers say tranche-based exports are fine during price surges, production crashes and stock depletion. But if India wants a sugar sector that can keep a sustainable lead in the global market, the export quotas should be more stable.

India-Australia Economic Cooperation and Trade Agreement (Ind-Aus ECTA) will enter into force on December 29 paving the way for the elimination of duties on 100 per cent tariff lines and creating additional 10 lakh jobs in India.

 

Post signing of the Ind-Aus ECTA on 2 April 2022 and the completion of the ratification processes and the necessary domestic requirements, including internal legal procedures, India and Australia exchanged written notifications.

 

The Agreement will enter into force 30 days after this exchange of written notification between India and Australia in accordance with Article 14.7 of the Agreement.

 

'India and Australia exchange has written notifications; India-Australia ECTA to enter into force on 29 December. Duties on 100 per cent tariff lines to be eliminated by Australia under ECTA. Additional 10 lakh jobs to be created in India under ECTA,' said the Ministry of Commerce & Industry in a statement.

 

The India-Australia ECTA and the provisions thereof which have been arrived at after extensive consultations with all relevant stakeholders will further cement the already deep, close and strategic relations between the two countries and will significantly enhance bilateral trade in goods and services, create new employment opportunities, raise living standards, and improve the general welfare of the peoples of the two countries.

 

'The date is set! The Australia-India Economic Cooperation and Trade Agreement will enter into force on 29 December, delivering new market access opportunities for both countries & securing the Australia-India friendship in the decades to come,' tweeted Australia’s High Commissioner to India, Barry O’Farrell.

 

This trade agreement will deliver new market access opportunities for Australian businesses and consumers from December 29, 2022.

 

Australia finalized its domestic requirements for the trade agreement last week with the unanimous passage the Government’s Bills through Parliament. ECTA is a ground-breaking agreement that brings Australia and India’s economies closer together, read Australia’s Minister for Trade and Tourism Don Farrell press release.

 

ECTA will save Australian exporters around USD 2 billion a year in tariffs, while consumers and businesses will save around USD 500 million in tariffs on imports of finished goods, and inputs to our manufacturing sector.

 

The tariff commitments provided by India in the agreement will open up access for Australia’s exporters of products including critical minerals, pharmaceuticals, cosmetics, lentils, seafood, sheepmeat, horticulture and wine.

 

'The ECTA’s two tariff cuts in quick succession intensify the up-front benefits of this agreement for our exporters. Businesses are encouraged to get on the front foot and prepare themselves now to take advantage of the substantial improvements in market access to India under the new agreement. Austrade can assist existing and potential exporters benefit from the lowering of trade barriers into the Indian market,' said Farrell.

 

Australian service suppliers will benefit from full or partial access across more than 85 Indian services sectors and subsectors. Australian suppliers across 31 sectors and subsectors will be guaranteed the highest standard of treatment that India grants to any future free trade agreement partner, added the press release.

 

Australian services sectors to benefit include higher education and adult education, as well as business services such as tax, architecture and urban planning.

 

ECTA will support tourism and workforce needs in regional Australia by making 1000 Work and Holiday Program places available to young adventurous Indians. It maintains opportunities for Indian students graduating in Australia to undertake post-study work, with a bonus year of stay for high-performing STEM graduates, read the release.

 

'Australia and India are increasingly working together as strategic and economic partners. We elevated our relationship with India to a Strategic Partnership in 2009 and to a Comprehensive Strategic Partnership in 2020. The Australia-India Economic Cooperation and Trade Agreement is the next step in elevating our relationship with India, the world’s fastest-growing large economy,' said Prime Minister of Australia, Anthony Albanese.

 

Industries, businesses, students, professionals etc. on both sides are eager to avail the opportunities arising through this agreement. It will also promote people-to-people contact between the two democracies.

 

Duties on 100 per cent tariff lines are to be eliminated by Australia under the agreement. It is expected that with this agreement, the total bilateral trade will cross USD 45-50 billion in 5 years from the existing USD 31 billion.

 

Both countries are complementary in their trade opportunities. Hence it will help in a resilient supply chain wherein cheaper raw materials and intermediate products from Australia will be made available to make our finished product competitive.

 

It is estimated that an additional 10 lakh jobs would be created in India under ECTA. Indian Yoga teachers and chefs are set to gain with the annual visa quota. Over 1 lakh Indian students would benefit from post-study work visas under the ECTA.

 

The agreement is also likely to increase investment opportunities, promote exports, create significant additional employment and facilitate strong bonding between the two countries.

 

Australia is an important strategic partner of India. They are also part of the four-nation QUAD, Trilateral Supply Chain Initiative and the Indo-Pacific Economic Forum (IPEF).

 

ECTA will open a new chapter on India-Australia Comprehensive Economic Partnership between two vibrant economies with shared interest and trade complementarities.

 

The Agreement encompasses cooperation across the entire gamut of bilateral economic and commercial relations between the two friendly countries.

The Council of Ministers' Resolution No. 812 of 26 November 2022 has introduced quotas for the import of pork and poultry meat in 2023. The document was officially published on the National Legal Internet Portal, BelTA informs.

 

According to the document, the Agriculture and Food Ministry was instructed to determine tariff quotas for each region for the import of pork and poultry meat into the territory of Belarus in 2023, and also to bring them to the attention of the regional executive committees by 15 December 2022. The ministry was also instructed to distribute 100% of tariff quotas for the import of pork and poultry meat by 5 January 2023. These quotas will be distributed between registered legal entities and individual entrepreneurs who will have submitted requests for using these quotas to the regional executive committees by 20 December. The Agriculture and Food Ministry must issue a respective local legal act.

 

By 27 December 2022, the regional executive committees must submit proposals to the Agriculture and Food Ministry on the distribution of quotas between registered legal entities and individual entrepreneurs in proportion to the actual volume of products they processed in the previous year.

 

The Ministry of Antimonopoly Regulation and Trade is authorized to issue import licenses for pork and poultry meat.

 

The document comes into force after its official publication.

Farmers will benefit from the Horticulture Cluster Development Programme (CDP), said Union Minister for Agriculture and Farmers Welfare, Narendra Singh Tomar.

 

Addressing a meeting for the proper implementation of the Horticulture Cluster Development Programme, the minister said that the main objective of the government is to promote the agriculture sector in the country. 'We want to increase the income of the farmers by giving them a reasonable price for their produce. The interest of the farmers should be paramount in the center of any programme/scheme.'

 

Tomar added that the states of Arunachal Pradesh, Assam, West Bengal, Manipur, Mizoram, Jharkhand, and Uttarakhand should also be included in the list of 55 clusters, identified with their focus/main crops. 'The land available with Indian Council of Agricultural Research (ICAR) affiliated institutions within the identified clusters should be utilized for the implementation of this programme.'

 

The meeting was informed that the Cluster Development Programme has a great potential to transform the entire horticulture ecosystem by creating last-mile connectivity with the use of multimodal transport for efficient and timely evacuation and transportation of horticulture produce.

 

'The CDP will also create cluster-specific brands, while helping the economy, to integrate them into national and global value chains, thereby providing higher remuneration to farmers. It will benefit around 10 lakh farmers and related stakeholders along the value chain,' said the Ministry of Agriculture and Farmers Welfare.

 

The CDP aims to improve exports of targeted crops by about 20% and create cluster-specific brands to enhance the competitiveness of cluster crops. A lot of investment will also come in the horticulture sector through CDP.

 

Agriculture is the backbone of India’s economy and has to sustain its 1.4 billion population. With $4.6 billion in agrifood venture capital investments in FY2021-22, India’s agrifood ecosystem is finally receiving the funding required to tackle the challenges faced by smallholder farmers, rural communities, agricultural value chains, and food systems.

 

As with other parts of the world and particularly in the wake of Covid-19, food delivery services inflated total investment level, with Restaurant Marketplaces and eGrocery startups securing close to $3 billion – around 66% – of total investment in the fiscal year (FY) ending 31 March 2022. But increasing deal activity for upstream innovations shows promise.

 

Michael Dean, founding partner, AgFunder, said, 'India has always been a leading agrifoodtech ecosystem, ever since AgFunder and Omnivore started in the early 2010s but to see investment levels surpass all other countries in the Asia-Pacific region and compete on the global stage is indicative of the impressive range and depth of innovations coming from the country and potential to impact the agrifood industry as a whole.'

 

Mark Kahn, managing partner, Omnivore, said, 'The investment trends are proof that the agrifoodtech space can no longer be called niche. It has caught the attention of generalist VCs the world over who understand that agrifoodtech is key to the transformation of India’s massive agricultural sector and rural economy.'

India's exports of premium basmati rice are likely to jump 15% over last year as key buyers in the Middle East build their inventories despite prices jumping by nearly a quarter, leading exporters told Reuters.

 

Higher basmati exports would keep local prices firm, helping Indian farmers earn more by pushing paddy prices up to a record high.

 

'After the Ukraine war, buyers are afraid of a sudden supply disruption. Every buyer is trying to have enough stocks,' said Vijay Setia, former president, All India Rice Exporters Association.

 

India could export more than 4.5 million tonnes in 2022/23 financial year started on April 1, up 15 % from a year ago, he said. Trade ministry data showed that exports rose 11% to 2.16 million tonnes in the first half of 2022/23.

 

A sharp drop in freight charges from this year's peak was also prompting importers to buy more, Sethia added.

 

India, the world's biggest rice exporter, mainly exports top grade basmati rice to the Middle East and non-basmati rice to African and Asian countries. The country has put restrictions on exports of non-basmati rice to calm local prices.

 

Iran, traditionally the biggest buyer of Indian basmati rice, was an purchasing actively in the past few months, but countries like Iraq and Saudi Arabia have been more active of late, said Anil Mittal, chairman and managing director KRBL Ltd (KRBL.NS), a leading rice exporter.

 

Iran, Saudi Arabia, Iraq, United Arab Emirates, and Yemen account for nearly two-thirds of India's basmati rice exports.

 

'Exports prices rose in the past few months, but still demand is there. Iran is not active but Saudi Arabia and Iraq bought 150,000 tonnes each last month,' Mittal said.

 

Export prices for the grain have jumped to over $1,450 per tonne from around $1,160 a year ago.

 

Higher exports have lifted prices of traditional basmati paddy to a record 60,000 rupees per tonne in India, Mittal said.

 

India's basmati rice production was expected to jump by around 20% after farmers expanded area under the crop, but untimely rainfall in September and October capped the upside in the production, Mittal said.

The country has imported 3.37 million metric tons (MT) of rice in November, 34.14 percent more than the 2.51 million MT brought in in the same period  last year.

 

Latest data from the Bureau of Plant Industry (BPI) showed that the  figure is  21.43 percent higher than the 2.77 million MT  that arrived for the whole of 2021.

 

For this year, the highest monthly volume was  recorded in August at 433,454 MT.

 

In terms of sources, data showed the country imported rice from China, India, Japan, Myanmar, Pakistan, Singapore, Spain, Thailand and Vietnam.

 

Vietnam was still the country’s top supplier, cornering 83.4 percent of the total volume at 2.81 million MT, 18 percent higher than the 2.36 million MT imported as of end last year.

 

Myanmar came in second with 215,918.18 MT and Thailand with 166,501.37 MT.

 

Data also showed that the top importer of rice was NAN STU Agri Traders, which shipped 189,210.35 MT. It was followed by Manus Dei Resources Ent. Inc., with 152,751.28 MT and Lucky Buy and Sell, with 144,851 MT.

 

The United States Department of Agriculture (USDA) expects the country to import more rice until mid-next year due to lower projected production amid the high cost of fertilizers and the devastating impact of Super Typhoon Karding in Luzon late last month.

 

The USDA-Foreign Agricultural Service (FAS) forecasted the country to import 3.4 million MT of rice, higher than its previous projection of 3.3 million MT.

 

Super Typhoon Karding made a landfall last Sept. 25 and destroyed rice crops ready for harvest in Central Luzon, particularly in Nueva Ecija, which is considered the country’s rice granary.

 

Meanwhile, soaring fertilizer prices continued to force farmers to significantly reduce application, thereby lowering yields by three percent.

 

This led the USDA to lower its projection on the country’s milled rice production from 12.411 million MT to 11.975 million MT in the July 2022 to June 2023 period.

 

According to the Fertilizer and Pesticides Authority, fertilizer prices have increased significantly, although urea prices have tapered off a bit since May.