India has allowed export-oriented units and the firms set up in Special Economic Zones to export flour made from imported wheat, a government order said on Friday, conceding to the demands of food processors to allow shipments of value-added products.

 

India will allow food processors to import duty-free wheat against a commitment to export flour, the order said.

 

After a sudden rise in temperatures in mid-March shrivelled the wheat crop, India, the world's second-biggest producer of the grain, banned overseas sales of the staple to secure supplies for its 1.4 billion people.

 

Wheat exports from India, also the world's second biggest consumer of the staple, surged after Russia's invasion of Ukraine hit supplies from the Black Sea region, resulting in a jump in global prices.

 

After banning wheat exports in May, the government of Prime Minister Narendra Modi restricted wheat flour exports in August to keep a lid on local prices.

 

The ban on wheat exports boosted demand for Indian wheat flour and the country's flour exports jumped 200% during April-July 2022 from a year earlier, lifting prices in the local market.

 

Close on the heels of the ban on overseas sales of wheat, India restricted rice exports as scant rains in the east affected planting of the most water-thirsty crop.

 

India's protectionist measures have stoked fears of food shortages in some of the world's most needy and vulnerable countries in Asia and Africa.

The government 'will sell wheat in the open market if there is a need to control prices', food secretary Sudhanshu Pandey said on Monday.

 

Stock position of wheat and rice in the central pool is comfortable even after meeting the requirements of the seventh phase of Pradhan Mantri Garib Kalyan Ann Yojana (PMGKAY), he said. 'We also have a surplus for market intervention if the need arises,' he added. Pandey allayed concerns over wheat price increase, saying the rise is in tune with the increase in its minimum support price (MSP) and other costs such as transportation.

 

International prices of wheat are Rs.9-10 higher than its domestic prices, he said, adding that only a part of Ukraine's wheat supply has reached the global market and the shortfall continues.

Countries from the Latin America and Caribbean (LAC) region have started to look towards India for trade diversification and ways to leverage its technological know-how in industries like pharma and IT. And, this has become even more evident after the pandemic and the war in Ukraine shifted supply chains, harming LAC economies.

 

'India-LAC trade nearly doubled over the past decade, reaching $42.5 billion in 2021 and there are over 160 Indian companies present in LAC with investments exceeding $30 billion, said Karin Costa Vazquez, Executive Director of the Center for African, Latin American and Caribbean Studies.

 

According to her, 'India has emerged as a strategic partner for LAC in today’s geopolitics. This is particularly relevant for Brazil, where the upcoming presidential elections and the new foreign policy directions create opportunities to rethink relations with India.'

 

Ms Vazquez who is also Associate Professor at OP Jindal Global University (CALACS/JGU) speaking at a webinar `India – Latin America Dialogue: Expanding Horizons’ said, 'Beyond the trade ties, India and LAC share perceptions about the global order and their role in it. Argentina, Brazil, India, and Mexico are members of the G20, an intergovernmental grouping which India will chair for the first time in 2023.

 

With Brazil hosting the G20 and the BRICS in 2024 and Argentina’s intention to join the BRICS, opportunities for policy coordination and economic cooperation arise.'

 

'The webinar offers a platform for government, social, and private sector professionals to exchange views on how to develop India-LAC relations. We hope this platform grows into a community around issues we must solve and advances collaboration among our countries,' she stated. 

 

The LAC region was the main recipient of the India-UN Development Partnership Fund in 2021 ($20 million, 26 projects) and the region is also a critical supplier of minerals and hydrocarbons to India and a partner in the global energy transition with 12 countries participating in the Solar Alliance.

 

According to Manuel Gonzalo, Co-coordinator of the India-Asia working group, Argentinean Council for International Relations, 'Asia has emerged in global capitalism and India has a central role in pushing the US Indo-Pacific strategy. China-US competition at the global level has implications to India’s position in the Indian Ocean. Last week Gerardo Morales [Argentinian politician] said US must put the same money China is putting in LAC. Soft power has a role, but finance speaks high.'

 

During the round table discussion, he made observations and raised questions like: How to deal with the challenge of two giants playing in the region? Fuels are extremely relevant in the current context. Today LAC has a boon of lithium. What is the interest of Indian companies in lithium? What is the role of Indian SOEs in the energy sector?

 

Daniela Castro, Secretary of Research, Industrial Policy and Defense Production, Ministry of Defense of Argentina said: 'There is an opportunity for STI cooperation to produce defense equipment. Work agenda should include: (i) technology transfer; (ii) joint development and production of airplanes: and (iii) development of a knowledge ecosystem in the defense industry.'

 

'We have a very shallow trade agreement between India and Mercosur covering only 250 products. Is there space for increasing products in a way that we can generate important impacts in the trade agenda? IBSA has shifted from economic to cooperation in health, education, defense, and social protection. What are the key issues that should be pushed forward to bring IBSA back on track? Do you see India playing a role in debt restructuring in the G20? How can we use MDBs, especially the NDB, more effectively to push a developing country agenda in the G20 finance track?' asked Ivan Oliveira, Advisor, Ministry of Economy of Brazil.

 

During discussion, Raul Cano, Ambassador of Paraguay to the WTO, said 'Paraguay and India share the same values: democracy, human rights, and rule of law. Can India step up trade and investments in Paraguay to match those of Taiwan and (potentially) China mainland? Paraguay does not want to be just a commodity exporter, but to add value to its exports. There is room for cooperation in electro-mobility, solar energy, automobile, pharma, IT, petrochemicals,etc at both bilateral and Mercosur levels.'

 

Adding, 'Paraguay wants to build the partnership mentioned by Ambassador Reddy, receive investments, and generate employment. Focus should be given to nearshoring to add value to raw materials produced in Paraguay and looking into the Mercosur market.'

 

According to Gustavo Rojas, Program Officer, UN in Paraguay, 'It would be important to expand the range of products and the level of tariff preferences granted mutually by India and Mercosur. The limited supply of Indo-South Atlantic shipping routes should be discussed and analyzed too. Consideration could be given to including in this future agreement a multi-sectoral package of trade facilitation agreements, incorporating some of the innovative agendas that both parties have been promoting at the multilateral level in the WTO.'

 

'The creation of specific chapters on the treatment of non-tariff measures, local currency payment systems, and technical cooperation in agriculture could be innovative measures for expanding these flows in a sustainable way. It would be strategic to relaunch the Global System of Trade Preferences among Developing Countries by means of the entry into force of its latest protocol,' he stated.

 

'Mercosur’s regional automotive agreement, currently under negotiation, and CELAC’s sanitary self-sufficiency plan, approved this year, offer interesting regulatory frameworks for considering the construction of an Indo-Latin American productive integration strategy,' Gustavo Rojas added.

 

He suggested that IBSA should be revitalized and updated, with renewed emphasis on key issues such as food, energy, and health security and to make these actions feasible.

 

Responding to various concerns and questions, Indian Ambassador to Brazil, Suresh Reddy talked about various aspects of India in the region:

 

New partnerships in the region (Paraguay):  According to the envoy India is not lookingto compete with China but build a strong partnership with the region. 'Willing to become your preferred partner in sectors of the economy. How to create employment and promote the productive sector, not just finance. Commodities go through cycles but if we have strong manufacturing etc it can offer alternatives during downward cycles.'

 

He urged Paraguay to send a team to India to look at the companies here and to establish relationships and to also reach out to big Indian companies and give them the confidence to invest.

 

Ambassador Reddy also said that India is not competing with US/China nor anyone. 'It is offering a hand because we share the same values and Indian companies are big enough to make a positive impact in job generation and other legacy. We are looking at the future and it will be a digital one. That is where India can build a strong partnership.'

 

He also talked about the economy: International Solar Alliance + sharing knowledge and finance in partnerships with countries like Brazil and Argentina. On Mercosur the envoy urged to understand what is happening in Argentina. 

 

Australia-India signed an agreement recently which was concluded in six months, he said and is a case for LAC: keen to tap into the Indian market and commodity producer. Same was with the UAE and Mauritius. Discussions are going on with the UK to conclude soon, and Canada and the EU (December 2023).

 

About the webinar

 

Recently, the Center for African, Latin American and Caribbean Studies at OP Jindal Global University, FGV EAESP Business Administration School of São Paulo, and the Argentinean Council on International Relations co-hosted the webinar — India – Latin America Dialogue: Expanding Horizons.

 

What was the agenda?

 

Indian Ambassador to Brazil, Suresh Reddy, and leading experts and practitioners from Argentina, Brazil, and Paraguay discussed the main motivations and results of External Affairs Minister Dr S Jaishankar’s visit to Latin America and what it means for India’s foreign policy strategy towards the region. Experts also shared their perspectives on the opportunities for India-LAC cooperation and how to promote them.

 

The webinar reaffirmed the need for knowledge networks around common issues that the region is trying to solve and to advance collaboration among our countries. It also called the Indian embassies in LAC to host dialogues with the epistemic community to spread awareness and further build these knowledge networks.

Kerala has requested Andhra Pradesh to resume supply of boiled rice. Kerala is also seeking to import chilli and pulses from Andhra Pradesh.

 

Kerala Minister for Food and Civil Supplies G R Anil held talks with his AP counterpart Karumuri Nageswara Rao on the issue in Amravati on Monday. According to preliminary estimate, Kerala would require one lakh tonne of paddy that turns into 60,000 tonne of boiled rice.

 

Kerala said it would let AP know the exact quantity required by October 21. The two sides will have a further meeting in Thiruvananthapuram on October 27 to take the issue forward, the ministers told reporters after their talks.

 

Previously, boiled rice known as Jaya Bondal (MTU 3626) used to be shipped from AP to Kerala and was in good demand. For the past few years, however, the demand shrunk as Kerala was getting boiled rice from other states.

 

'But in the name of Jaya Bondal, duplicate varieties are being supplied, which is not liked by our people. Hence, we are seeking to import the Jaya variety grown in AP that has a unique taste and flavour,' the Kerala Food Minister said.

 

The AP Minister said they would encourage farmers to go for cultivation of Jaya variety boiled rice if Kerala offered a remunerative price.

 

'This variety is grown in East and West Godavari districts only during the Rabi crop season. We had earlier discouraged the farmers from its cultivation due to lack of demand,' Nageswara Rao said. They would again encourage farmers to grow Jaya variety if the deal with Kerala was firmed up.

 

Production of boiled rice has seen a significant decline in AP from 16.56 lakh tonne in 2019-20 to 9.56 lakh tonne in 2020-21 and 8.04 lakh tonne in 2021-22. Last year, the AP government procured 25 per cent of the boiled rice produced.

 

Boiled rice apart, Kerala also sought to buy chilli (the famous Guntur variety), red gram, green gram and black gram from AP. Kerala is offering spices and tea to AP in return.

 

'We will hopefully clinch a deal at the meeting on October 27 or we will have another round subsequently,' the AP Minister said.

With farmers having sown paddy on a record 26 lakh hectares (lh) and the demand for paddy up in the country, the Telangana government has set a target to procure 10 million tonnes (mt) this kharif season against about 7 mt in the same season last year.

 

The State, which is expecting a bumper output of 14.1 mt in the kharif season, is also seriously looking at not putting any restrictions on the paddy cultivation for the upcoming rabi season.

 

Minister for Civil Supplies Gangula Kamalakar said nearly 40 per cent of the total kharif output might go to the open market.

 

The State Government, which had asked farmers not to cultivate paddy in the previous rabi season, seems to have changed its policy. In all likelihood, it will allow farmers to sow the staple cereal crop the way they like.

 

The State’s decision last year followed a fight with the Union Government over the procurement of parboiled rice (the rabi output) in the previous year.

 

Inconsistent policy

Kanneganti Ravi of Rythu Swarajya Vedika has flayed the State Government for its inconsistent policy on paddy. 'It is neglecting other crops and is only focussing on paddy, cotton and maize. The area under millets and pulses is dwindling as there is no market support from the State government,' told businessline.

 

'It wanted the farmers to shun paddy and go for alternative crops in the last rabi season. But it failed to offer any marketing support to farmers who went for pulses,' he said.

 

Targets missed

This year, the farmers have completely ignored the target set by the State government. While the government set a target of 28 lh for cotton, farmers settled for just under 20 lh. On the other hand, it wanted the farmers to reduce the paddy acreage to 20-22 lh. 'But they sowed in a record area of 26 lh,' Ravi said.

The Food Safety and Standards Authority of India (FSSAI) has issued an advisory asking food businesses involved in the import of food articles to use the Food Import Clearance System (FICS) and avoid delays in speedy clearance of the imported consignment.

 

According to the FSSAI’s advisory, in order to facilitate faster clearance of the articles of food imported at the port and minimise the clearance time the food businesses were advised to avail the facility of advance processing of ‘Bill of Entry’ in FICS while importing food consignments.

 

'FSSAI has already provided easy facility of advance filing of Bill of Entry in Food Import Clearance System of FSSAI forwarded from the Custom ICEGATE so that scrutiny of documents submitted by the Food Importer to the Authorised  Officer is carried out in advance, before the actual arrival of the article of food at port,' said Dr Amit Sharma, Director (Trade and IC), FSSAI.

 

According to the FSSAI, although several importers file advance Bill of Entry in ICEGATE but when its transmitted to FSSAI for examination, they don’t file it on FICS. 'Hence to reduce overall food import clearance time and demurrage charges incurred, all the food importers/ FBOs are hereby advised to avail the facility of advance processing of Bill of Entry in FICS while importing food consignments,' read the advisory issued by FSSAI.

 

Earlier this month, some food importers challenged FSSAI in the Delhi High Court against the delay in clearances of the imported food articles.

 

The High Court however did not gave any ruling but in principle agreed to the submission that the importers should be given a public warehouse to place their imports until the clearance was given.

The country's sugar production is projected to be 36.5 million tonnes in the 2022-23 marketing season, an increase of 2 per cent compared to the year-ago period, industry body ISMA said on Monday. The marketing season will be starting this month.

 

The production in India, the world's major producer of the sweetener, stood at 35.8 million tonnes during the 2021-22 marketing season.

 

The season is from October-September.

 

With an estimated increase in production despite higher diversion for ethanol, ISMA expects export to be around 9 million tonnes this season.

 

Releasing the first estimate, the Indian Sugar Mills Association (ISMA) said, 'after accounting for the reduction of 45 lakh tonnes in sugar production due to diversion of cane juice/ syrup and B-molasses to ethanol, ISMA estimates sugar production in 2022-23 at around 36.5 million tonnes of sugar.'

 

Sugar output in Uttar Pradesh is estimated to be 12.3 million tonnes, Maharashtra at 15 million tonnes and Karnataka at 7 million tonnes during the 2022-23 season, it said.

 

Since the target of 12 per cent blending is expected to be achieved, sugar diversion towards production of ethanol is estimated to be higher by 32 per cent at 45 lakh tonnes in the current season as against 34 lakh tonnes during 2021-22 season.

 

A total of about 545 crore litres of ethanol would be required and supplied during the current season, ISMA said.

 

On exports, the industry body said the window of timeline for exports appears to be quite short for Indian sugar this year as Brazil sugar will hit the global market by May 2023.

 

Further, most mills have already contracted sugar for export supplies in the current season. So, an early announcement of sugar export policy by the government should be highly appreciated, it added.

 

Sugarcane crushing has started in the southern region and is expected to start soon in other regions also. Therefore, a better picture would emerge after a few months when actual trend of yields and sugar recoveries would become available.

 

As has been the practice, ISMA will again review the sugarcane and sugar production estimates in January 2023.

Sufficient stocks are available in central pool to meet the requirement of NFSA and other schemes of Govt. of India as well as for additional requirement of PMGKAY. As on 1st Oct, 2022 approximately 227 LMT of wheat and 205 LMT of rice are available in the Central pool which is well above the buffer norms / operational requirement.

 

Even after meeting the requirement of stocks under NFSA, Other welfare schemes as well as PMGKAY VII, as on 1st of April 2023 sufficient stock will be available under central pool which is over & above the buffer norms. It is estimated that as on 1st of April 2023, approximately 113 LMT wheat and 237 LMT rice will be available in the central pool after meeting all the requirements, against the buffer norms / operational requirement of 75 LMT of wheat and 136 LMT of rice.

 

Procurement of Kharif crop of Paddy in the current KMS 2022-23 has commenced. A quantity of around 58 LMT Paddy (39 LMT in terms of Rice) have been procured up to 16.10.2022 which is higher as compared to the procurement during the corresponding period last year in KMS 2021-22. The rainfall condition this year has been fairly good in the country and the production of paddy is expected to remain normal.

 

For Kharif crop of current KMS 2022-23, a quantity of 771 LMT Paddy (518 LMT in terms of Rice) has been estimated to be procured. With the inclusion of Rabi paddy, it is expected that around 900 LMT paddy will be procured during the entire KMS 2022-23.

 

Procurement of wheat would commence from April’ 2023. On account of fairly good rainfall condition in the country, it is expected that Wheat production and procurement in the next Rabi Season shall remain normal.

 

Considering high nutritional value of coarsegrains termed as “Nutri-cereals”, GOI has planned to procure 13.72 LMT during KMS 2022-23 under central pool against procurement of 6.30 LMT during KMS 2021-22.

 

To ameliorate the hardship faced by the poor due to economic disruption caused by COVID-19, Government of India has taken pro-poor initiatives and allocated free foodgrain to about 80 Crores people of the country under PMGKAY in addition to existing PDS and other welfares schemes. A total quantity of 1121 LMT foodgrains has been allocated under PMGKAY with an expected financial outlay of Rs. 3.91 lakh Crore. Such large release of foodgrains coupled with regulation of exports, has ensured that domestic price has largely remained stable compared to international price of these commodities.

 

Stock scenario is given as under:

 

Fig. in LMT

 

Commodity	Stock Position as on 1st Oct 22	Buffer Norms as on 1st Oct 22	Projected Stock Position as on 1st April 23	Buffer Norms as on 1st April 23
Wheat	227	205	113	75
Rice	205	103	237	136

The Prime Minister Shri Narendra Modi inaugurated the PM Kisan Samman Sammelan 2022 at Indian Agricultural Research Institute in New Delhi today. The Prime Minister also inaugurated 600 Pradhan Mantri Kisan Samruddhi Kendras (PMKSK) under the Ministry of Chemicals & Fertilisers. Furthermore, the Prime Minister also launched Pradhan Mantri Bhartiya Jan Urvarak Pariyojana - One Nation One Fertiliser. During the event, the Prime Minister also released the 12th instalment amount of Rs. 16,000 crores under the Pradhan Mantri Kisan Samman Nidhi (PM-KISAN) through Direct Benefit Transfer. The Prime Minister also inaugurated the Agri Startup Conclave and Exhibition. During the event, the PM also launched ‘Indian Edge’, an e-magazine on fertiliser. Shri Modi took a walkthrough of Theme Pavilion of Startup Exhibition and inspected the products on display.

 

Addressing the gathering, the Prime Minister started by acknowledging the presence of Jai Jawan, Jai Kisan, Jai Vigyan and Jai Anusandhan in one premise, and said that we can see the live form of this mantra here today. He further elaborated that Kisan Sammelan is a means to make the lives of farmers easier, boost their capability and promote advanced agricultural techniques.

 

In his address at the 'PM Kisan Samman Sammelan 2022', the Union Agriculture and Farmers Welfare Minister, Shri Narendra Singh Tomar said the Modi government has fulfilled all promises made to famers since 2014.

 

Shri Tomar said, PM-KISAN is the world’s biggest direct benefit scheme and is an outcome of the continued commitment of Shri Modi that received accolades for its scale, transparency and seamless transfer of funds.

 

Shri Tomar recalled, once a Prime Minister of India very famously remarked that of every rupee spent by the government, only 15 paise reached the intended beneficiary. But, today, every single penny of annual grant of Rs 6,000 directly reaches to farmer through DBT without any middlemen or any commission or cut money, the Minister remarked. He said, PM Kisan Samman is being implemented with full transparency aided by appropriate technology. The Minister also informed that the Centre and States are working closely to rectify the list of eligible farmers by removing the bogus beneficiaries.

 

Shri Tomar told a gathering of over 17,000 farmers present at Pusa Mela Ground and about one crore farmers who joined the event virtually across the country that Kisan Samman fund was never demanded by the farmers, but it was with a commitment of the Prime Minister to double the income of farmers and strengthen their financial well being that the scheme was devised. The Minister said, the Samman grant of Rs 6000 to farmers and many other schemes of Modi Government are outside the other schemes meant for the welfare of poor, youth and women in the country.

 

Shri Tomar expressed happiness that today’s event brought farmers and Agri Start-ups on same platform. He said, apart from one crore farmers, who joined the event virtually, 732 Krishi Vigyan Kendras (KVKs), 75 ICAR Institutes, 75 State Agricultural Universities, 600 PM Kisan Centres, 50,000 Primary Agricultural Cooperative Societies, and 2 Lakh Community Service Centers (CSCs) attended the event in virtual mode.

 

Referring to inauguration of the Agri Startup Conclave and Exhibition by Shri Modi, the Agriculture Minister said that our farmers are skilled and innovative, but they don’t have any platform to showcase their talents. He said, innovative and educated youth of our country are working on various initiates like innovation of Precision Farming, Post-Harvest & Value Add Solutions, Allied Agriculture, Waste to Wealth, Mechanization for Small Farmers, Supply Chain Management & Argi-Logistic and working on both farming or non-farming sector.

 

Shri Tomar also informed that around 1500 start-ups are participating in the two-day Kisan Sammelan and 300 start-ups are showcasing their farm related innovations to increase production and productivity, reduce post-harvest losses and augment income, besides creating new job opportunities. The Minister also underlined that while only 80-100 startups were working in Agriculture sector in 2014, the number has grown to 2000 now and likely to touch the figure of 10,000 by 2025 due to enabling tech milieu provided by the Modi Government.

 

Shri Tomar said, with inauguration of 600 Prime Minister Kisan Smurudhi Kendra (PMKSK), the fertilizer retail shops will now be converted into one stop shop. He said, these centres will not only provide inputs to the farmers but also resolve their other types of problems. He said PMKSK will cater to the needs of the farmers in the country and provide agri-inputs (fertilizers, seeds, implements etc); testing that will provide facilities for soil, seeds and fertilizers; create awareness among farmers, provide information regarding various Government schemes and  ensure regular capacity building of retailers at block/ district level outlets.

 

Speaking about One Nation One Fertilizer (ONOF) scheme, Shri Tomar said that now all type of fertilizers whether it is DAP, NPK or Urea, will be sold under one brand name 'Bharat' to standardize fertiliser brands across the nation irrespective of the company that manufactures it.

Prime Minister Narendra Modi inaugurated the 'PM Kisan Samman Sammelan 2022' in Delhi on Monday. While speaking at the inauguration ceremony of the two-day event, the prime minister said natural farming provides an important way to solve the challenges of the future.

 

The event was held with the aim of bringing together more than 13,500 farmers from across the country and around 1,500 agri startups.

 

During the event, PM Modi also launched the Pradhan Mantri Bhartiya Jan Urvarak Pariyojana – One Nation One Fertilizer. Under the scheme, the prime minister will launch Bharat Urea Bags, which will help companies market fertilizers under the single brand name “Bharat”.

 

While launching the scheme he said, 'Under 'One Nation, One Fertilizer', farmers will be able to get rid of all kinds of confusion and better manure is also going to be available.'

 

Union Agriculture Minister Narendra Singh Tomar, Union Fertiliser and Chemicals Minister Mansukh Mandaviya, Union Minister of State for Fertilisers and Chemicals Bhagwanth Khuba, and Union Ministers of State for Agriculture Kailash Choudhary and Shobha Karandhlaje and other senior officials also participated in the event.