India and the European Free Trade Association (EFTA), a bloc that comprises Iceland, Liechtenstein, Norway and Switzerland, are eyeing the resumption of negotiations on a free trade agreement (FTA) after a gap of several years, people familiar with the matter said.

 

The two sides held their last round of negotiations in New Delhi in January 2017, and the issue of resuming talks has figured in all recent political-level meetings between India and EFTA member states, the people said.

 

Two officials aware of the development said Switzerland has been in talks with India for the FTA involving the EFTA. Though EFTA is not a large bloc compared to others with which India is currently negotiating trade deals, it has its strategic economic importance, the officials said requesting anonymity.

 

'In EFTA, India’s trade with only Switzerland is significant, and the trade balance is hugely in favour of them. Hence, its priority is a bit low compared to other ongoing FTAs,' one official said.

 

According to official data, India’s total mercantile trade with EFTA during 2021-22 was $27.23 billion, with a deficit of more than $23.7 billion.

 

India’s key imports from these countries are gold ($20.7 billion in 2021-22), coal, pharmaceuticals, vegetable oil, silver, dairy machinery, medical, petroleum crude and scientific equipment. It exports chemicals, iron and steel, gold, precious stones, yarns, sports goods, glassware and bulk drugs to these nations.

 

Recently, India igned its first FTA with a developed country, Australia. It is in advance stage of finalising a similar deal with the United Kingdom. New Delhi is currently negotiating FAs with Canada and European Union.

 

Negotiations for a trade deal between India and EFTA were launched in January 2008. Thirteen rounds of talks were held until late 2013 before negotiations were put on hold. Four more rounds were held after talks resumed in October 2016.

 

Heads of delegations from both sides met virtually on September 15 to discuss the state of play and open issues in the negotiations.

 

Addressing the annual session of PHD Chamber of Commerce and Industry on September 29, commerce minister Piyush Goyal mentioned Switzerland as one of the prospective FTA partners along with the UK, Canada and the European Union.

 

'We have FTAs with many countries in the past, but today, we are working with developed countries. Australia, UAE, UK, EU, Canada, GCC group of [countries], Switzerland…All the rich countries of the world, highly developed countries. They all want to work with India,' he said at the function.

 

The second official said Switzerland is important as India receives significant foreign direct investments (FDI) from the country. Switzerland has been the fifth top FDI sourcing nation after Singapore, the US, Mauritius and the Netherlands, according to the UNCTAD World Investment Report 2022.

 

There are possibilities for collaboration in healthcare, telemedicine, education and technological advancements, the second official said, citing the meeting between Switzerland member of parliament Niklaus Samuel Gugger and Union minister Jitendra Singh in New Delhi in April.

 

A high-level delegation from Switzerland will visit India in October and there will be efforts to take forward bilateral ties in areas that are mutually beneficial, he added.

 

The EFTA states, for their part, are keen to push forward the negotiations in view of India’s current track record of speedily finalising trade deals with Australia and the UAE, the people said.

Wheat arrivals across various agriculture produce marketing committee (APMC) yards in the country increased to a 12-year high during August-September this year even as the stocks with the Food Corporation of India (FCI) dropped to a six-year low.

 

Data from Agmarknet, owned by the Ministry of Agriculture and Farmers’ Welfare, showed that wheat arrivals during August-September were 57 per cent higher at 2.27 million tonnes (mt) compared with 1.44 mt in the same period a year ago. Arrivals are the highest since August-September 2010 when 4.38 mt arrived.

 

Rising export demand boost orthodox tea prices in Kochi 

India only has a few crops to meet demand, and orders are pouring in from many markets

 

Arrivals between April, when wheat harvest begins, and August are at a three-year high of 20.90 mt. In 2019, the arrivals during the period were 22.95 mt, while in 2020 and 2021 they were 15.19 mt and 17.51 mt respectively. Wheat stocks with the FCI are 24.82 mt, the lowest since 2016.

 

Lower procurement

'The Food Secretary had said at the Roller Flour Mills Federation of India (RFMFI) annual general meeting that wheat procurement was at least 25 mt lower this year and they would have to come to the market. It is happening now,' Pramod Kumar, President, RFMFI, told businessline. 

 

Wheat prices have almost stabilised. The weighted average price is Rs.2,304.52 a quintal, the same as in September first week. Last week, the highest price for wheat was at Khategaon APMC in Madhya Pradesh’s Dewas district at Rs.2,480. Arrivals at the APMC increased to 187.4 tonnes, over 100 tonnes more than the arrivals for the whole of August at 74 tonnes.  

 

At Hardoi APMC in Uttar Pradesh, wheat prices are currently ruling at Rs.2,300 after having topped Rs.2,500 on August 13 and Rs.2,400 on September 26. 'We are not witnessing any demand as mills are fully stocked. Fearing shortage, they had bought wheat at different price points and occasions,' said a South India-based miller who did not wish to be identified.

 

Fears over availability

'Wheat held up at ports are now coming to the markets, though demand is slack,' said MK Dattaraj, Managing Director, The Krishna Group of mills.

 

'Fears were spread on availability of wheat during the festive season. DussehraDasara has got over and we will have Diwali soon. All major festivities will be over in a couple of weeks and we don’t face any shortage of wheat. We expect no problem with the availability till December,' said RFMFI President Kumar.

 

'If at all wheat prices have increased, it is due to freight charges as fuel has become costlier,' the South-based miller said. 

 

A New Delhi-based analyst said big farmers who held back their wheat hoping to get higher prices have also begun to bring out their stocks with the market not showing any alarm over availability or price.

 

Export demand

In May this year, wheat prices ruled over Rs.2,500 a quintal, a record, following export demand in view of the Ukraine war. As Ukraine and Russia account for 30 per cent of the global wheat trade, consuming nations such as Egypt looked to India to help them. 

 

This resulted in FCI wheat procurement dropping by over 56 per cent to 18.9 mt this year compared with 43.44 mt a year ago. In view of this, and to contain rising food inflation, the Centre banned wheat exports from May 13. 

 

Centre bans wheat export to cool domestic prices, rein in inflation

Food Ministry cuts 5.6 mt wheat allocation for PDS, replaces it with rice

 

Besides export demand, wheat prices gained as a heatwave that swept across the country during March-April affected the crop’s yield. This resulted in wheat production dropping from the initially estimated 111.43 mt this year. 

 

As per the fourth advance estimate of the Ministry of Agriculture, wheat production is projected to be 106.84 mt compared with 109.59 mt last year. 

 

On a leash

The Indian wheat export ban drove up global prices to $12.77 a bushel ($469.16 a tonne) on the Chicago Board of Trade before cooling to $8.95 ($328.82) currently. 

 

Prices have moderated in the domestic market too, though they are still ruling higher than the minimum support price of Rs.2,015 a quintal this year.

 

'We expect the Centre to offload some 2-3 mt around December in the open market. That will keep the market on the leash and probably, help until the new crop begins arriving in mid-February,' Kumar said. 

 

Food prices may stay elevated

Supply tightness is set to continue in case of grains like rice and maize (corn) while relief in wheat may be just modest. 

Shipments of electrical machinery and equipment increased by approximately 90%, from Rs7,202 crore in April–July 2021 to Rs13,606 crore in April - July 2022

 

The Uttar Pradesh merchandise exports increased 32% year over year to Rs 60,578 crore between April and July 2022, despite sluggish economic confidence in important overseas markets.

 

April through July 2021 saw the state export commodities worth Rs 45,861 crore. An official spokesperson for the government stated that 'Uttar Pradesh is ahead of certain important states, including Andhra Pradesh, Haryana, West Bengal, and Odisha, in terms of growth in exports, even while the comparable growth rate of eight Indian states even turned negative.'

 

Uttarakhand, Tripura, Nagaland, Mizoram, Manipur, Jharkhand, and other states all experienced a sharp decline in exports. A variety of labor-intensive industries, including electrical machinery and equipment, meat, textiles, footwear, autos and auto parts, etc., saw an increase in exports from Uttar Pradesh.

 

Shipments of electrical machinery and equipment increased by approximately 90%, from Rs7,202 crore in April–July 2021 to Rs13,606 crore in April–July 2022. In the meantime, the UP government wants to boost exports of goods from their present level of Rs. 1.56 trillion to Rs. 3 trillion over the course of the next three years.

 

The sector of micro, small, and medium-sized companies (MSME) makes up a maximum of more than 70% of the total United States exports.

 

The state has seen a rise in shipments, particularly since the government put into effect its flagship One District One Product program, which aims to revive the domestic industries through financial injection, capacity building, and marketing support.

 

To encourage shipments, the state is already transforming each of its 75 districts into an export center. Six of the 50 pan-Indian districts that the Center has chosen to transform into model export centers as part of a pilot project are in the state of Uttar Pradesh: Moradabad, Kanpur, Varanasi, Bhadohi, Agra, and Gautam Buddha Nagar (Noida).

 

In order to support domestic companies and increase employment, the UP government is also working toward import substitution. UP imported goods worth more than Rs55,000 crore through dry ports in the fiscal year 2021–2022 (railway and road cargo terminals directly linked with domestic seaports).

 

Yogi Adityanath, the chief minister of Uttar Pradesh, has asked his MSME department to identify the top imports of goods that may be produced domestically instead.

 

The state has identified 95 commodities that make up its import basket, and of them, 40 items account for imports with values ranging from 100 to over 10,000 crores of rupees. These include items used in agriculture and food processing, chemicals, minerals, precious stones, industrial and engineering products, etc.

India's sugar exports jumped 57 per cent to 109.8 lakh tonnes during 2021-22 marketing year ending September, making the country world’s 2nd largest exporter of sugar, the food ministry said on Wednesday said.

 

India's sugar exports stood at 70 lakh tonnes in 2020-21 marketing year, 59 lakh tonnes in 2019-20 and 38 lakh tonnes in 2018-19.

 

'Supportive international prices and Indian government policy led to this feat of Indian sugar industry. These exports earned foreign currency of about Rs 40,000 crore for the country,' the ministry said in a statement, adding that timely government interventions in the past five years brought the sector out of financial distress.

 

India achieved the highest exports of about 109.8 lakh tonnes, without any financial assistance from the government.

 

The surge in sugar imports resulted in foreign currency inflow worth about Rs 40,000 crore into the country, it added.

 

The country also produced a record of more than 5,000 lakh tonnes sugarcane during the same period, out of which about 3,574 lakh tonnes were crushed by sugar mills to produce about 394 lakh tones of sugar (sucrose).

 

Out of this, 35 lakh tonnes of sugar was diverted to ethanol production and 359 lakh tonnes of sugar was produced by sugar mills, the food ministry said.

 

India emerged as the world's largest producer and consumer of sugar due to record sugar production, it claimed.

 

Sugarcane arrears to farmers stood at only Rs 6,000 crore at the end of 2021-22 marketing year (October-September) as mills have already paid Rs 1.12 lakh crore to farmers out of total payable amount of Rs 1.18 lakh crore. This was done without any financial assistance (subsidy) from the central government, the ministry said.

 

'Thus, cane dues at the end of sugar season are less than Rs 6,000 crore indicating that 95 per cent of cane dues have already been cleared. It is also noteworthy that for 2020-21, more than 99.9 per cent cane dues are cleared,' it added.

 

Earlier this year, the government allowed exports of 100 lakh tonnes of sugar and then later permitted another 12 lakh tonnes. This took the total export quota for 2021-22 to 112 lakh tonnes. Mills were able to ship 109.8 lakh tonnes.

 

The government has been encouraging sugar mills to divert sugar to ethanol and export surplus sugar so that mills can pay farmers on time.

 

'Growth of ethanol as biofuel sector in last 5 years has amply supported the sugar sector as use of sugar to ethanol has led to better financial positions of sugar mills due to faster payments, reduced working capital requirements and less blockage of funds due to less surplus sugar with mills,' the statement said.

 

During 2021-22, the ministry said that mills/distilleries earned revenue of about Rs 18,000 crore from sale of ethanol, which has also played its role in early clearance of cane dues of farmers.

 

Ethanol production capacity of molasses/sugar-based distilleries has increased to 605 crore litres per annum and the progress is still continuing to meet targets of 20 per cent blending by 2025 under Ethanol Blending with Petrol (EBP) Programme.

 

'In new season, the diversion of sugar to ethanol is expected to increase from 35 lakh tonnes to 50 lakh tonnes, which would generate revenue for sugar mills amounting to about Rs 25,000 crore,' the ministry projected.

 

'The season has proven to be a watershed season for Indian sugar sector. All records of sugarcane production, sugar production, sugar exports, cane procured, cane dues paid and ethanol production were made during the season,' the ministry said.

 

The closing stock of sugar stood at 60 lakh tonnes which is essential to meet domestic requirements for 2.5 months.

The Codex Committee on Spices and Culinary Herbs (CCSCH) has finalized and recommended quality standards for nutmeg, saffron, chilli-peppers, and paprika during its sixth session.

 

The committee forwarded these three new proposed standards to the Codex Alimentarius Commission (CAC) for adoption at final step 8 as full-fledged Codex standards. 

 

Codex standards are globally important because they are prepared by inter-governmental committees and are referred to resolve international trade disputes. It also forms the basis of aligning national standards by Codex member countries.

 

CCSCH is the youngest of the Codex Commodity Committees. The Committee is chaired by India and Spices Board India functions as its Secretariat. It is mandated to elaborate worldwide, science-based quality standards for spices and culinary herbs, in accordance with the Codex principles of consumer protection and fair-trade practices.

 

Spices Board to conduct special e-auction for lab-tested cardamom

Spices Board aims to facilitate separate marketing channel for lab-tested cardamom for pesticides and artificial colours

 

Past performances

In its past five sessions, the committee developed and finalized Codex standards for dried or dehydrated forms of black/white/green pepper, cumin, thyme, garlic, basil, clove, ginger, and oregano.

 

Normally, the Committee meetings are held once in 18 months. The last meeting session of CCSCH was conducted in a virtual mode, which is a first, in 2021, owing to Covid-19 with more than 250 international delegates, Codex Secretariat in Rome, CCSCH Secretariat in India, and interpreters for four languages.

 

D Sathiyan, Secretary, Spices Board said the latest session has seen great success by finalizing standards for 3 more spices. The present session witnessed the highest global participation ever, which points to the great interest that countries across the globe have in spices and culinary herbs. The committee is focusing on developing group standards for spices and herbs, which is likely to speed up the process of standards development greatly.  

 

Indian spices market draws big branded players

It is estimated to be only around 40% of the total market at close to Rs.24,000 cr, driven by regional preferences for taste

 

CCSCH6 unanimously agreed to forward the three draft standards to Codex Alimentarius Commission for final adoption as Codex standards. This includes dried/ dehydrated forms of nutmeg, saffron, and chilli-pepper and paprika. 

 

The committee will also continue working on the draft standards of small cardamom and turmeric and will also attempt to take the strategy of grouping spice standards further in the coming 18 months leading to CCSCH7.

 

Earlier, Rajesh Bhushan, Chairperson, Food Safety and Standards Authority of India (FSSAI) virtually inaugurated the 6 th edition of CCSCH.

Rice export consignments with the 'presence of certain content of broken grains' will no more face problems with the Indian government issuing a clarification on Tuesday.

 

The Centre said 5 per cent and 25 per cent broken rice, which is normal rice with 'permissible limits of broken rice as per standards' are exempted from any export ban.

 

However, exporters will have to 20 per cent duty as stipulated in a notification dated September 8, 2002, the Directorate-General of Foreign Trade (DGFT) said in a trade notice. 

 

Trade’s complaints

The notice clarifies the situation on problems with broken content in rice meant for exports, It said 5 per cent and 25 per cent broken rice will not be treated as 'fully broken rice'. 

 

The notice comes on the heels of traders and exporters complaining that a trade notice issued on September 28, which said 'The Rice Grade and Marking Rules, 1939' would apply for deciding on the controversy over 'the presence of broken contents' in rice shipments. 

 

Allow duty-free exports of rice with LCs opened before ban, plead shippers

At least four lt of broken rice and 5 lt of white rice held up at ports or CFS

 

The notice had erroneously mentioned 'The Rice Grade and Marking Rules, 1939' as 'The Rice Grade and Marketing Rules, 1939'. Exporters said there were quite a few problems since the 1939 law referred to jute bags, whilst currently, shipments were made in polypropylene bags. Shippers said even the Food Corporation of India does not follow these rules in procuring the cereal. 

 

Consignments held up

Exporters said at least 0.9 million tonnes of white and parboiled rice for which letters of credit had been opened before September 8 - the day when the Centre notified curbs on rice exports - and were in transit. 

 

While the Centre has banned exports of broken rice, it imposed a 20 per cent export duty on non-basmati white rice, brown rice and paddy. Parboiled and basmati rice have been exempted from any curbs. 

 

The broken contents in non-basmati rice, which can be exported after payment of 20 per cent export duty, had held up thousands of containers. 

 

An exporter based in South India, speaking on the condition of anonymity, said an exporter in western India was paying at least Rs.2 crore daily as demurrage and warehouse rent since his consignments were held up.

 

Ready to pay duty

According to traders, the 1939 law was meant to be a reference for Customs officials and the volume of broken grains in the consignments should be well within the permissible limits.  

 

The DGFT said the latest notice was in view of exporters representing that 5 and 25 per cent broken rice that had irrevocable letters of credit were being stopped at ports. 

 

India invokes 1939 law to deal with exports of rice with ‘brokens’

Trade says it has created more problems in shipping the cereal; 0.9 mt held up at ports

 

Exporters said they were willing to pay the export duty and today’s notice should provide them with the relief. 

 

India curbed rice exports as the kharif paddy acreage is lower due to deficient rainfall in key growing areas of Bihar, Jharkhand, West Bengal and east Uttar Pradesh. In addition, rice stocks with the FCI are lower than last year as of September 1 at 24.46 mt (26.83 mt a year ago). Unmilled paddy stocks, too, are lower at 16.16 mt (17.60).

In Sugar Season (Oct-Sep) 2021-22, a record of more than 5000 Lakh Metric Tons (LMT) sugarcane was produced in the country out of which about 3574 LMT of sugarcane was crushed by sugar mills to produce about 394 LMT of sugar (Sucrose). Out of this, 35 LMT sugar was diverted to ethanol production and 359 LMT sugar was produced by sugar mills. With this, India has emerged as the world’s largest producer and consumer of sugar as well as the world’s 2nd largest exporter of sugar.

The season has proven to be a watershed season for Indian Sugar Sector. All records of sugarcane production, sugar production, sugar exports, cane procured, cane dues paid and ethanol production were made during the season.

Another shining highlight of the season is the highest exports of about 109.8 LMT that too with no financial assistance which was being extended upto 2020-21. Supportive international prices and Indian Government Policy led to this feat of Indian Sugar Industry. These exports earned foreign currency of about Rs. 40,000 crores for the country.

 

The success story of sugar industry is the outcome of synchronous and collaborative efforts of Central and State Governments, farmers, sugar mills, ethanol distilleries with very supportive overall ecosystem for business in the country. Timely Government interventions since last 5 years have been crucial in building the sugar sector step by step from taking them out of financial distress in 2018-19 to the stage of self-sufficiency in 2021-22.

During SS 2021-22, sugar mills procured sugarcane worth more than 1.18 lakh crore and released payment of more than 1.12 lakh crore with no financial assistance (subsidy) from Government of India. Thus, cane dues at the end of sugar season are less than Rs. 6,000 crore indicating that 95% of cane dues have already been cleared. It is also noteworthy that for SS 2020-21, more than 99.9% cane dues are cleared.

 

Government has been encouraging sugar mills to divert sugar to ethanol and also to export surplus sugar so that sugar mills may make payment of cane dues to farmers in time and also mills may have better financial conditions to continue their operations.

 

 

Growth of ethanol as biofuel sector in last 5 years has amply supported the sugar sector as use of sugar to ethanol has led to better financial positions of sugar mills due to faster payments, reduced working capital requirements and less blockage of funds due to less surplus sugar with mills. During 2021-22, revenue of about Rs. 18,000 crore has been made by sugar mills/distilleries from sale of ethanol which has also played its role in early clearance of cane dues of farmers. Ethanol production capacity of molasses/sugar-based distilleries has increased to 605 crore litres per annum and the progress is still continuing to meet targets of 20% blending by 2025 under Ethanol Blending with Petrol (EBP) Programme. In new season, the diversion of sugar to ethanol is expected to increase from 35 LMT to 50 LMT which would generate revenue for sugar mills amounting to about Rs. 25,000 crores.

There is an optimum closing balance of 60 LMT of sugar which is essential to meet domestic requirements for 2.5 months. The diversion of sugar to ethanol and exports led to unlocking of value chain of the whole industry as well as improved financial conditions of sugar mills leading to more optional mills in ensuing season.

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 yesterday to boost the initiative visioned by the Prime Minister Shri Narendra Modi to promote Millets towards celebration of the International Year of Millets 2023.

 

Both organizations 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 organize, promote, market, and forge effective market linkages for millet-based products to maximize 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.