The Soyabean Processors’ Association of India (SOPA), the apex trade body for the sector, has pegged the kharif 2022 crop at 120.39 lakh tonnes (lt) — higher than the previous year’s 118.89 lt.

 

SOPA’s crop estimates are lower than the Ministry of Agriculture’s first advance estimates of 128.92 lt.

 

SOPA’s crop projections are despite a decline in the overall acreage at 114.50 lakh ha (lh) during this year’s kharif season, against 119.98 lh last year. SOPA’s acreage estimate is lower than the Government’s estimates of 120.82 lh for the kharif 2022 season. The soyabean trade body sees higher yield this year on account of the better spread of rains in key-growing regions of Madhya Pradesh and Rajasthan. SOPA sees the overall yield higher by some six per cent at 1,051 kg per hectare compared with 991 kg last year.

 

M.P. prospects

In Madhya Pradesh, the largest producer of soyabean, the output this year will be higher at 53.26 lt, marginally higher than 52.29 lt a year ago. This higher output is despite almost a 10 per cent decline in acreage at 50.66 lh (55.68 lh). The yield in M.P. is expected to be higher by 12 per cent at 1,051 kg compared with 939 kg in the previous year. In Maharasthra, SOPA expects output to decline to 46.91 lakh tonnes compared with 48.32 lakh tonnes in the previous year on account of a decline in yields to 1,080 kg/ha (1,102 kg/ha in the previous year). The area has also declined to 43.44 lakh ha (43.84 lh). In some areas of Maharasthra, the excess rains have impacted the crop this year resulting in lower yields, said DN Pathak, Executive Director, SOPA.

 

In Rajasthan, SOPA expects production to be higher at 9.83 lt (7.04 lt) on higher yields. Soyabean yield in Rajasthan is likely to increase by 25 per cent to 953 kg (762 kg). The area was also higher in Rajasthan at 10.34 lh (9.25 lh). In Karnataka, soyabean production is seen higher at 4.39 lt (3.84 lt) on a rise in the area. However, in Telangana, the output is expected to be lower at 1.76 lt (3.54 lt) on a decline in acreage. In Gujarat, the output is seen higher at 2.40 lt (2.27 lt) on higher yields.

The government on Friday said India will accord top priority to its national interest in its trade negotiations and will not diverge from this approach for the sake of deadlines.

 

At a meeting with exporters and industry, commerce and industry minister Piyush Goyal asked them to keep prospecting for new opportunities in the world market to expand trade and do a deep dive of services imports.

 

'Goyal today said that India would accord top priority to national interest in FTA negotiations,' the commerce and industry ministry said in a statement.

 

'FTAs to be entered into after thorough consultation with all stakeholders including industry, and the government will not diverge from this approach for the sake of deadlines,' it said.

 

The statement assumes significance as India and the UK negotiate an FTA which is currently in its final stages of negotiation towards a Diwali deadline.

 

Exporters Seek Support

 

Goyal also reviewed India's export performance in the first six months of this financial year at the meeting.

 

Merchandise exports shrank 3.5% in September, contracting after 19 months with job-creating sectors such as engineering, garments and cotton yarn being the worst hit.

 

Industry flagged issues related to rising of cost of raw materials and subdued demand in certain key export markets due to high inventory levels. It sought inclusion of left-out sectors under Remissions of Duties and Taxes on Exported Products (RoDTEP) and rationalisation of existing rates under the scheme, exploring possibility for increased support under Interest Equalisation Scheme (IES) and under Market Access Initiative. Industry also sought operationalisation of production-linked incentive (PLI) schemes for additional sectors.

 

'Highlighting the healthy growth seen in some markets such as Latin America and Africa, it was informed that the evolving economic and geopolitical environment required the industry to be attentive and optimistic so that growth opportunities in such new markets are not missed,' the ministry said.

 

Federation of Indian Export Organisations (FIEO) sought extension of previously granted exemption from goods and services tax (GST) on ocean freight, while Engineering Export Promotion Council (EEPC) of India pushed for rollback of 15% export duty on some stainless steel products, arguing that export duty is one of the key reasons for engineering exports' downward trend in the last few months and a 17% contraction in September.

 

EEPC India chairman Mahesh Desai said withdrawal of export duty will be especially helpful for micro, small and medium enterprises who have a significant contribution in India's engineering exports.

Department for Promotion of Industry and Internal Trade (DPIIT) conducted a National Workshop on ‘Ease of Doing Business’ in New Delhi today.

The Keynote address at the Workshop was delivered by Shri Parameswaran Iyer, CEO Niti Aaayog. He highlighted the importance of India’s performance on global indices. He underscored how Ease of Doing Business took the center stage as one of the most important pillars along with other programs, towards developing India as a preferred investment destination. Shri Iyer also spoke of the vision of Prime Minister Shri Narendra Modi for ease of living and Ease of Doing Business. He suggested that focus should be on achieving the whole-of-government approach by learning from each other.

 

Shri Amitabh Kant, G 20 Sherpa emphasized the role of Ease of doing business in transforming India. He reiterated that complacency with improvement of India’s rank is not desirable. De-novo thinking on the very need of certain processes, permissions, renewals is necessary to attain Ease of Doing business in its true spirit. Enabling a change in mindset within the country to accept the new ways is also essential, he said. Further he emphasized on having at least one change agent to initiate the transformation in every State.

 

Secretary DPIIT, Shri Anurag Jain moderated the panel discussion in which Shri Parameswaran Iyer, CEO Niti Aayog, Shri Ramesh Abhishek, Former Secretary DPIIT, Shri Shailendra Singh, Agriculture Production Commissioner, Government of Madhya Pradesh, Shri Ajay Tirkey, Secretary, Department of Land Resources, Shri Ravinder, Secretary, Health, Government of UP participated.

 

Shri Ramesh Abhishek, former Secretary, DPIIT highlighted the vision for Ease of Doing Business 2.0, wherein a framework to be drafted for all public authorities including State and regulators. Study of global Best Practices should be undertaken by Government Departments. Very need for license/ approvals / renewals should be examined and any requirement of the same should be justified. It should also be examined if licenses/approvals can be replaced with mere registration/intimation to Government authorities.

 

Shri Shailendra Singh, Agriculture Production Commissioner, Government of Madhya Pradesh, talked about the capacity building exercises undertaken and workshops for all stakeholders to inculcate Ease of Doing Business across the country.

 

Shri Ajay Tirkey, Secretary, Department of Land Resources, mentioned that significant improvement in registration processes has been achieved through digitization and accessible grievance redressal mechanism. Department is working on next phase of reforms including geo-referencing and unique identity for land parcels.

 

Shri Ravinder, Secretary, Health, Government of UP mentioned the initiatives undertaken on the lines of international best practices such as Hong Kong for improved construction permits.

 

The eminent panelists highlighted the significance of coordination among the government departments and States, allocation of responsibility among the nodal departments and effective monitoring as few pillars that led to the improvement in India’s rankings in World Bank’s Doing Business Report. The panelists also provided valuable inputs regarding the next generation of reforms to further enhance Ease of Doing Business across the Country.

 

Smt. Manmeet K. Nanda, Jt. Secretary, DPIIT also made a presentation covering the reform journey of Ease of Doing Business in India. She highlighted the key initiatives undertaken by the Central and State governments to create a conducive business environment across the Country. It may be noted that India is one of the few countries with sub-national rankings with an aim to percolate the impact of reforms at the ground level.

 

Presentations were also made by representatives of Government of Maharashtra and Government of NCT of Delhi highlighting reforms implemented by them which contributed to improvement of India’s rank in World Bank’s Doing Business Report.

 

Workshop also witnessed wide participation from States, Central Ministries, and Industry. The workshop highlighted the key learnings of continuous process of the Ease of Doing Business exercise in India. It broad based the initiatives undertaken, global best practices to be studied, and focused upon the ‘Whole of Government’ approach to drive reforms ‘Across Nation’.

Data localisation and UK companies being allowed to bid for Indian government contracts are among the issues causing a possible deadlock in the final stages of the India-UK free trade agreement (FTA) negotiations towards a Diwali draft completion deadline, according to a UK media report on Sunday.

 

'The Daily Telegraph' quoted a source close to the talks to say that data localisation rules that prevent foreign companies taking data out of India and allowing UK firms to bid for public sector contracts are two key 'sticking points' to a comprehensive deal.

 

The likelihood of a so-called 'thin' trade deal within the symbolic Diwali or October 24 deadline and further 'iterative' deals at a later stage is now looking like a likely outcome.

 

'The stumbling blocks are absolutely to do with digital. How ambitious and comprehensive this deal is is in some way a function of time,' the newspaper quoted an 'insider' as saying.

 

It follows UK Trade Secretary Kemi Badenoch indicating earlier this week that just because there may be an FTA struck with India, it did not mean 'we can't do even more later'.

 

The Department for International Trade (DIT) also reiterated the government stance that any FTA would be agreed only if it meets the UK's interests.

 

'We remain clear that we won't sacrifice quality for speed and will only sign when we have a deal that meets the UK's interests,' a UK government spokesperson said this week.

 

It follows a week of controversial interventions that cast a shadow over the prospect of a wide-ranging bilateral trade agreement, with UK Home Secretary Suella Braverman expressing 'reservations' over India being offered some sort of 'open borders' visa concessions.

 

While India countered the minister's claims that a Migration and Mobility Partnership (MMP) between the two countries had not 'worked very well' in tackling visa overstayers, strategic experts suggested that the wrangles may well end up in a diluted trade pact. The prospect of Prime Minister Narendra Modi's UK visit towards the end of the month to sign off on an FTA draft around Diwali is also seen as shaky at this stage.

 

'It now appears likely that the prospective UK-India FTA under the Liz Truss government will not be as substantive nor as comprehensive as envisaged by the previous Boris Johnson government, as negotiations on key issues of mobility/migration and tariffs can be expected to continue towards a non-time bound second-phase of the agreement,' said Rahul Roy-Chaudhury, Senior Fellow for South Asia at the London-based International Institute for Strategic Studies (IISS) think tank.

 

'Negotiations on key issues of mobility/migration and tariffs can be expected to continue towards a non-time bound second-phase of the agreement. But, it will still enable both governments to claim political victory, even though its economic impact may be underwhelming for both,' he said.

 

The Diwali timeline for an FTA was announced enthusiastically by former prime minister Johnson during his visit to India in April. The governing Conservative Party in the UK has since been thrown into turmoil and his embattled successor at Downing Street, Liz Truss, is believed to be very keen to score her big win by clinching a trade deal with one of the world's fastest growing economies - a process she had initiated as former trade secretary.

 

The focus of the FTA negotiations is on reducing the barriers to trade, cutting tariffs, and supporting easier imports and exports into each other's markets.

 

According to official UK government data, India-UK bilateral trade currently stands at around GBP 24.3 billion a year and the aim is for that to be at least doubled by 2030.

Moving from the eighth to fifth position in sowing areas among the top ten rice producers this year, Madhya Pradesh has even exceeded Punjab, the country’s leading rice producer of kharif season. If the productivity matches the Punjab level, Madhya Pradesh may soon become the largest producer of rice, although at the cost of some pulses and oilseed crops.

 

The area under paddy in MP has surged 53 per cent to 32.2 lakh hectare in the current kharif season, with production estimated to go up 46 per cent to 70.36 lakh tonnes (lt), according to the first advance estimate of the Union Agriculture Ministry. On the other hand, Punjab is likely to become the largest producer of kharif season with an estimated 133.78 lt of rice from an area of 31.33 lh.

 

Uttar Pradesh, the top rice producer in kharif season, is likely to slip to second place with 124.8 lt from an area of 57.8 lh. Though the area under paddy transplanting in UP is higher by 1.8 per cent, the lower rainfall in July-August could be the reason for a lower yield. The state had received 53 per cent, 43 per cent and 41 per cent below-normal rains during June, July and August, respectively. But September had 31 per cent above average rainfall.

 

The average yield in Punjab is stagnant at 4.3 tonne per hectare, whereas in the MP it is around 2.1-2.2 tonne, leaving scope for further improvement. Farmers of Punjab, Haryana and western Uttar Pradesh prefer to grow wheat in rabi and paddy in kharif since the government procures these crops at minimum support prices.

 

'For four continuous years, MP beat Punjab to bag the national award for top producing state in wheat. Unless and until the government provides incentives for oilseeds and pulses, the rice area will keep increasing,' said Shiv Kumar Kakka, president of Rashtriya Kisan Mazdoor Mahasangh. He noted with continuous efforts, and farmers could grow paddy in black soil despite the contrary belief.

 

'Except some districts in Malwa, Nimad regions and areas around Bhopal and Vidisha, rice has reached almost all of Madhya Pradesh,' he said and held the government’s pulses import policy was responsible for farmers switching to this crop.

 

However, another leader, Sunilam, said farmers in the Chhindwara region continue to grow maize, and he did not see such a trend of shifting to paddy.

 

Area under pulses and oilseeds

The area under kharif pulses, including tur, urad and moong, increased to 23.31 lh this year from 19.99 lh last season, due to which the government estimated production of all pulses at 12.93 lh against 12.11 lt last year in Madhya Pradesh. The coarse cereals output in the state has been estimated at 64.27 lt from an area of 22.11 lh against 57.54 lt from 19.59 lh year-ago. The soyabean production is reduced to 51.53 lt from an area of 50.18 lh against 53.93 lt out of a 55.14 lh area.

A Memorandum of Understanding was signed between the Department of Agriculture and Farmers Welfare and the National Agricultural Cooperative Marketing Federation of India Limited in New Delhi to boost the initiative visioned by Prime Minister Narendra Modi to promote millets towards celebration of the International Year of Millets-2023.

 

Both organisations will work together for the promotion and marketing of millet-based products, keeping in view the initiative of 'International Year of Millets (IYOM)-2023' proposed by the Government of India to the United Nations, which is to be celebrated across the world. As India is gearing up to bring millet back on the global map, they will build support and organise, promote, market, and forge effective market linkages for millet-based products to maximise the value capture and millet-based commodities across the country.

 

DA&FW and NAFED will collaborate in key areas like facilitating advisory support to manufacturers/processors of millet-based products to develop value-added millet-based commodities; on-boarding of start-ups, inclusive of start-ups empanelled with Indian Institute of Millets Research (IIMR); formation of FPOs specifically for developing a range of millet-based products; promote and market millet-based products through the network of NAFED Bazaar Stores and other institutions linked with NAFED as well as installation of millet-based vending machines at various locations across Delhi-NCR; and dispensing millet-based products that shall assist in establishing the focus on millet-based commodities.

Bureau of Indian Standards (BIS), the National Standards Body of India signed an MoU with Testing, Inspection, Certification Council, India.

 

The two organizations will collaborate to promote and harmonise the implementation of standards and quality, safety and sustainability practices in laboratories. The organizations resolved to further work to improve the responsiveness for laboratories and exchange and disseminate the global best practices in the field of laboratories. The MoU was signed on 29 September 2022. Following which, a seminar on 'Emerging Global Trends in Laboratories for AatmaNirbhar Bharat' is being jointly organized by the two organizations on 3rd Nov 2022 in New Delhi.

 

The MoU was signed in the presence of Shri Pramod Kumar Tiwari, Director General, BIS and Ms Hanane Taidi, Director General, TIC Council. The MoU was signed by Shri Rajeev Sharma, Deputy Director General Laboratories, BIS and Shri Shashi Bhushan Jogani, Chairman, TIC.

 

Both the organisation looks forward to a mutually prosperous journey together. TIC Council (Testing, Inspection, Certification Council) is a global trade association representing the independent third-party testing, inspection and certification industry (TIC).

To tap the growing demand for warehousing from e-commerce firms, Union Food Secretary Sudhanshu Pandey on Friday exhorted the Food Corporation of India and the Central Warehousing Corporation (CWC) to monetise their assets in the urban areas.

 

Inaugurating the CWC’s 3.5 lakh sq ft Grade A Warehouse at the IT SEZ near Bengaluru International Airport on Friday, Pandey said e-commerce companies need warehouses in urban areas.

 

'I have already been encouraging both FCI and CWC to part away their facilities in urban areas as part of the asset monetisation programme for companies. We can operate for grain supplies outside the cities, which actually saves on land, saves time and gets a better return on investment on both sides,' Pandey said. FCI and CWC own warehousing capacities in many locations across the country.

 

CWC’s share

'From a situation of warehouse scarcity, we have come a long way to create capacity and can offer it to the private sector, which is willing to use it, not only for foodgrains but for other products as well,' Pandey said. CWC has a 50 per cent share of foodgrain storage, and within that 50 per cent, FCI has 37 per cent, while the rest is used by the private sector for their grain mangement.

 

'In future, we should be forward-looking. Government corporations still play an important role. For this reason, in the list of various disinvestment plans, both FCI and CWC are not part of the disinvestment. In fact, they are part of the future journey of the logistics sector with asset monetisation, where the private sector and the government sector can build relationships and put the country on the fast track on the logistics side,' Pandey said.

 

New warehouse

CWC has set up the 3.5 lakh sq ft Grade A warehouse on an area of 14 acres, which will be handed over to the Ethics Group of Companies for a 10-year period. The Ethics Group, which manages the entire supply chain and warehousing for the Pradhan Mantri Bharatiya Janaushadhi Pariyojana (PMBJP), plans to use the CWC facility to cater to the requirements in Karnataka and other neighbouring States. Bipin Kevadiya, CMD, Ethics Group, said the company operates similar warehousing facilities for the supply chain management of medicines under the PMBJP.

 

Arun Kumar Shrivastava, MD, CWC, said with land acquisition and change of land use becoming a problem in urban areas, CWC is willing to partner with private players to develop warehousing infrastructure across the country. CWC is also developing a 17.5 lakh tonne capacity of warehouses in around 100 plus locations across India to serve the needs of warehousing requirements, he said.

The global chickpeas market is expected to experience above-average growth by reaching US$17.8 bn and registering a positive CAGR of 5.7% through the forecast period 2021-2031, according to a latest report by Fact.MR. Owing to the various health benefits, nutrients, and proteins, chickpeas are being consumed on a large scale across the globe.

 

Historically, between 2016 and 2020, the sales of chickpeas surged at a CAGR of 4.3%. Sales further heightened during the Covid-19 pandemic, attributed to the increasing shift in dietary patterns of consumers, exhibiting greater interest in consuming plant-based foods. A reduction of over 70% infection rate was observed amongst people who consumed plant-based diets, according to a popular study,

 

People are using chickpeas in a variety of dishes to add texture and flavour. Chickpeas are also being offered to animals to fulfil their energy and protein requirements. Furthermore, direct consumption of chickpeas and canned chickpeas is propelling demand for chickpeas. Due to all these factors, chickpeas are expected to gain traction in the forecast period. 

India and Iran recently successfully concluded the first pilot of a fully digital intermodal TIR transport (international customs transit system) to push trade via International North-South Transport Corridor (INSTC) between India and Russia. The container was released less than a day after arriving at Iran's Bandar Abbas port, which would have otherwise taken up to five days. The project was completed with the support of Indian and Iranian customs authorities, ET has learnt.

 

TIR is the only global transit system. It enables goods to be shipped from the country of origin, through transit countries, to a country of destination in sealed load compartments that are controlled by customs via a multilateral, mutually recognised system. It is the easiest, safest and most reliable way to move goods across multiple international borders, saving time and money for transport operators and customs authorities. The pilot project demonstrated the efficiency of a fully intermodal TIR transport, an official said.

 

An electronic guarantee was issued instead of a TIR carnet, and all messages, such as the pre-declaration, were exchanged electronically in advance with relevant public and private actors, including customs authorities, which expedited the customs and port procedures, the official said.

 

INSTC has been facilitating a higher volume of trade between India and Russia via Iran amid the West’s sanctions on Moscow after Russian invasion of Ukraine.

 

The 7,200-km-long network of highways, sea and rail routes under INSTC offers the shortest connectivity route between Russia and India. It also reduces the carriage cost between the two nations by about 30%, experts said.

 

At present, most of the commodities that are transported through Iran along this route are shipments between Russia and India. Iran shipping lines had formed an operational working group for the development of transportation along INSTC in early April.

 

INSTC links the Indian Ocean to the Caspian Sea via the Persian Gulf onwards into Russia and Northern Europe, and offers the shortest connectivity route between them.

 

There are also plans to link the northern route via the Russian Arctic with INSTC for transportation of goods.

 

The foundation of the north-south transport corridor was laid on September 12, 2000, in accordance with an intergovernmental agreement signed between Russia, Iran and India. Azerbaijan joined this agreement in 2005. This agreement was ratified by 13 countries (Azerbaijan, Belarus, Bulgaria, Armenia, India, Iran, Kazakhstan, Kyrgyzstan, Oman, Russia, Tajikistan, Turkey, and Ukraine).

 

The project has a number of components: Northern and Western Europe-Russian Federation, Caucasus-Persian Gulf (western route); Central Asia-Persian Gulf (eastern route); and Caspian Sea-Iran-Persian Gulf (central route).