In a bid to ease the supply-side pressure amid rising inflation, the government has decided to increase the import of Tur and Urad for the next five years. The Ministry of Commerce and Industry on Monday issued a notification stating that New Delhi will import Tur and Urad from Myanmar, Malawi and Mozambique.

 

According to the notification, India will import 2,50,000 MT of Urad and 1,00,000 MT of Tur of Myanmar origin through private trade over the next five financial years -- 2021-22 to 2025-26.

 

'Accordingly, 2,50,000 MT of Urad and 1,00,000 MT of Tur will be imported from Myanmar for each fiscal year during the period 2022-26,' it said.

 

From Malawai, as per the notification, India will import 50,000 MT of Tur over the next five financial years. From Mozambique, the government has decided to import 2,00,000 MT of Tur annually through private trade during 2022-26.

 

Import will be allowed through ports in Mumbai, Tuticorin, Chennai, Kolkata and Hazira in Gujarat, the Ministry said.

 

The decision to increase the import of pulses is aimed at keeping the prices under check and also to meet the rising demand.

 

Earlier on Monday, MoS for Finance Pankaj Chaudhary informed the Lok Sabha that the price situation of major essential commodities is monitored by the government on a regular basis and corrective action is taken from time to time.

 

Several supply-side measures like including the reduction in import duties and cess on pulses have been taken to address inflation and to ensure that people do not have to bear the extra financial burden, he said.

The Centre’s decision to allow international trade settlement in the rupee will give a fillip to the Indian tea and coffee exports, especially to countries such as Russia and Iran, the major buyers of the Indian beverages.

 

'The rupee trade mechanism is a welcome step. As and when implemented, it will give a fillip to tea exports to the two most important countries—Iran and Russia. We are waiting for the fine print to get better clarity,' said Anshuman Kanoria, Chairman of Indian Tea Exporters’ Association.

 

In order to promote exports, the RBI issued a circular on July 11 allowing trade settlements between India and other countries in the Indian rupee (INR) with immediate effect. 'It is a positive step. If it works well, there can be a positive growth,' said Dipak Shah, Chairman of South India Tea Exporters Association, adding that higher exports may be quite possible with the new initiative.

 

Edge over Lanka

N Lakshmanan Chettiar of Golden Hill Estates Pvt Ltd in Coonoor, an exporter of orthodox teas, said the rupee trade mechanism is beneficial as exporters will be able to get the money quickly. Also, it will lead to higher exports to Russia, former Comecon and CIS countries. Further, this will also give the Indian exporters an edge over Sri Lankan exporters, who don’t have such a facility, Lakshmanan said.

 

Over the past two weeks, Russia, Iran and other CIS countries have stepped up purchases. The increased demand for Indian orthodox teas has led to prices cross the Rs.300-per-kg-mark in the recent auctions at Kochi.

 

India’s tea exports witnessed a nine per cent growth during January-April 2022 at around 65.91 million kg (mkg) compared with 60.43 mkg in the same period a year ago, Tea Board of India data showed. According to industry insiders, there has been a very good demand for Indian tea in Russia and Iran this year. In fact, exports to Iran grew by nearly 41 per cent at 8.46 mkg (6.02 mkg) during January-April 2022.

 

For settlement of trade transactions with any country, the authorised dealer banks in India should open special rupee vostro accounts, which are basically accounts that a correspondent bank holds on behalf of another bank of the partner country for trading.

 

Accordingly, all exports and imports under the new arrangement can be denominated and invoiced in INR.

 

Special vostro account

Indian importers undertaking imports through this mechanism will have to make payments in INR, which would be credited into the special vostro account of the correspondent bank of the partner country, against the invoices for the supply of goods or services from the overseas seller or supplier. The Indian exporters, undertaking exports of goods and services through this mechanism, would be paid the export proceeds in INR from the balances in the designated special vostro account of the correspondent bank of the partner country.

 

'The RBI initiative is likely to benefit the trading primarily with Russia which is at present is facing US sanction and the country is off the SWIFT system. It is not sure whether the mechanism will be helpful for trading with other countries as those countries may not accept it as they may need hard foreign currency to pay for their own imports,' Sujit Patra, Secretary, Indian Tea Association said.

 

It is not just the tea exporters, who are expected to benefit from such a rupee trading mechanism. The exporters of instant coffee would also benefit from such an initiative, said Ramesh Rajah, President of The Coffee Exporters Association.

 

Russia, the largest buyer of Indian instant coffees, has increased its purchases by about 36 per cent during the April-June quarter this year at 7,882 tonnes as compared with the same period in the previous year’s 5,785 tonnes.

 

Coffee exporters to Russia had faced payment issues in the recent past and the rupee trade settlement mechanism may address such issues and benefit the trade.

 

K G Jagadeesha, Coffee Board CEO and Secretary, expects the shipments to Russia to increase once the rupee-rouble trade mechanism is in place. 'There is demand for Indian instant coffee from Russia as other countries have stopped exporting. Russia is looking at India for more agricultural exports,' he said.

Vietnam and India have a long-standing traditional relationship and trade and investment are one of the key pillars of the bilateral relationship.

 

India is one of the top 8th trading partners of Vietnam while Vietnam is 15th largest trading partner of India and fourth in Southeast Asia. In 2021, bilateral trade turnover reached $ 13.2 billion for the first time. It is expected to reach the target of $ 15 billion set by the leaders of the two countries in 2022.

 

The main Vietnamese exported products to India are mobile phones and components, computers, electronic products and components, chemicals, plastics, rubber, coffee, pepper, cashew. The main Indian exported products to Vietnam are iron and steel products, textile materials, fishery, corn, pharmaceutical and pharmaceutical raw materials; auto spare parts.

 

On the occasion of the 50th anniversary of the Vietnam - India Diplomatic relations, the Ministry of Industry and Trade, Government of Vietnam organised a business delegation led by Do Quoc Hung, Deputy Director General of the Ministry and 20 business communities in multi-sectors to India from July 18th to 22nd.

 

The delegation consists of 20 enterprises in the various fields such as agricultural products(Coffee, Rice, Pepper, Tapioca Starch, Desiccated Coconut, Tea, peanut oil, dry instant seed, black flute mist, dried fruits, vegetables); food & beverage (instant canned processed foods, nutritional drink, food supplements); industrial products (electric fans and fan motor, mechanical products and auxiliary industrial equipment); chemicals and chemical products (compound fertilizers, water purification materials and chemicals); building materials (limestone, resin beads, white limestone powder) textile and garment, and textile materials; pharmaceuticals; handicrafts.

 

During the delegation's visit to India, the Ministry and Embassy conducted a series of business forums and meetings in New Delhi, Agra and Jaipur.

 

This platform provides an opportunity to the business men from both the countries to interact one to one in various sectors like food processing, fast moving consumer goods, cosmetics, handicrafts, home furnishings, agriculture products, etc., Both India and Vietnam have great potential in these sectors.

 

There are several initiatives being taken by the Vietnam government to attract investment. The recent changes in the FDI policies will attract investors and are optimistic that many investment-friendly policies will be implemented. The start-up ecosystem with the right direction and reforms has the potential to grow.

There is a significant potential for boosting exports of fruits and vegetables from Vidarbha region of Maharastra, Nitin Gadkari, Hon’ble Minister of Road Transport and Highways of India said today.

 

'In order to achieve higher exports, farmers have to adopt latest technology in agriculture and they have to be open to new research findings and adopting innovative farming practices as has been done in the grape-growing areas of Nashik in Maharashtra,' Gadkari said at an outreach programme on 'Export Potential for Agri Crops, Fruits & Vegetables' in Amravati, Maharashtra.

 

The programme for boosting exports of citrus fruits and vegetables was organized by APEDA (Agricultural and Processed Food Products Export Development Authority) – an organization under Department of Commerce, in association with Agrovision.

 

Stating that GI tagged Nagpur orange is grown in more than 70,000 hectares in Amravati Region, Gadkari said there is huge potential for export of Nagpur Oranges and other citrus fruits from the Region. Since Nagpur Orange is a GI product, it can also be sold at a premium, he pointed out. However, he also urged the scientists that R&D needs to be done for this sector in terms of increasing the yield, varietal improvement and value addition. 

 

Gadkari stated that while exports of Indian mandarin have doubled in the last two years, manifold increase in the exports can be achieved only through required R&D and value addition. The minister appreciated the efforts of APEDA in terms of capacity building of the stakeholders, required infrastructure development, quality up-gradation and promotions abroad.  He urged APEDA to organize more capacity building programmes for the stakeholders for getting the required information and knowledge. 

 

Exports of citrus fruits from India in 2019-20 stood at Rs329.32 crore and reached Rs 590.4 crore in 2020-21. The main markets were Bangladesh, Nepal, UAE and Bhutan, among others.

 

Gadkari emphasized on the right selection of planting material for GI tagged Nagpur Orange when targeting the export market and called for concerted focus to grow organic produce. The minister also exhorted farmers and exporters to comply with the norms of importing countries in packaging and to increase farm the productivity without compromising on the quality parameters in food safety aspects so as to ensure better realization for their produce. He also mentioned that use of drone technology for spraying of agrochemicals can reduce farm losses up to 70% when compared to current agronomical practices. Similarly, use of good packaging material also helps to minimize the post-export handling issues, Gadkari noted.

 

APEDA signed an MoU with Agrovision, which will facilitate and become an extended arm of APEDA in conducting capacity building programmes for the entrepreneurs, FPCs, FPOs and other stakeholders. 

 

The programme was attended by a large number of FPOs, FPCs, Entrepreneurs, Startups, Young Buddy Entrepreneurs, State Government Officials, NGOs, Cooperatives and Technical Scientists. In the Technical Session, information was shared on norms for quality improvement, importing country protocols, new technical development, etc.

Executive Director of the World Food Programme (WFP), Mr. David Beasley, called on the Union Minister of Agriculture and Farmers Welfare, Shri Narendra Singh Tomar in New Delhi today. During the meeting, Mr. Beasley lauded India's achievements in the Agriculture and Food sector and hoped that India will continue to provide its support for the smooth supply of food grains to the world in association with the World Food Programme.

 

Welcoming the World Food Programme delegation led by Mr. Beasley, Shri Tomar said that India and the WFP have been working closely in the agriculture sector since 1968 to ensure food security. Referring to the various schemes being run by the Government of India under the leadership of Prime Minister Shri Narendra Modi for the welfare of farmers, Shri Tomar said that through our Public Distribution System (PDS), the Government has distributed free food grains to 80 crore people of India during the Covid pandemic. Apart from meeting its domestic needs, Shri Tomar said that India has provided food grains to many countries, thereby upholding India’s ancient tradition and importance of ‘Vasudhaiva Kutumbakam’ (The World is One Family).

 

Mr. Beasley expressed satisfaction at WFP and India's efforts on Agricultural Development and Food Security, as well as lauded India's progress and said he would highlight India’s achievements in agriculture during the upcoming US Congressional meeting. On being informed by Shri Tomar that next year the International Year of Millets would be celebrated under the leadership of India, Mr. Beasley assured WFP’s full cooperation in the promotion of Nutritious Cereals.

Continuing the previous year's trend, agricultural and processed food exports increased by 14% in the first three months of the current Fiscal Year 2022-23 (April-June) compared to the same period in FY 2021-22.

 

Under APEDA, the government set an export target of USD 23.56 billion for the agricultural and processed food products basket for the fiscal year 2022-23. The Ministry of Commerce and Industry's initiatives have assisted the country in meeting 25% of its total annual export target in the first three months of the current fiscal year.

 

According to the Directorate General of Commercial Intelligence and Statistics (DGCI&S) Quick Estimates data, the overall export of products under APEDA ambit (Agricultural and Processed Food Products Export Development Authority) increased to USD 5987 million in April-June 2022 from USD 5256 million in the previous fiscal period. The target for April-June 2022-23 exports was USD 5890 million. Tea, coffee, spices, cotton, and marine exports are not included in the APEDA basket.

 

Fresh fruit and vegetable exports increased by 8.6 percent, while processed food products such as cereals and miscellaneous processed items increased by 36.4 percent (April-June 2022-23) when compared to the same months the previous year.

 

Fresh fruits and vegetables were exported to the tune of USD 642 million in April-June 2021, increasing to USD 697 million in the corresponding months of the current fiscal. Exports of other cereals increased from USD 237 million in April-June 2021 to USD 306 million in April-June 2022, while exports of meat, dairy, and poultry products increased from USD 1023 million in April-June 2021 to USD 1120 million in April-June 2022.

 

Rice exports increased by 13% in the first three months of fiscal year 2022-23, while meat, dairy, and poultry exports increased by 9.5 percent and other cereals exports increased by 29 percent. Rice exports increased from 2412 million USD in April-June 2021 to 2723 million USD in April-June 2022.

 

In the first three months of the current fiscal year, dairy products were exported to the tune of USD 1120 million, up from million in the same period last year.

 

'We continue to provide technical and financial assistance to various stakeholders in the agricultural goods value chains in order to increase exports of the country's unique products.' We aim to sustain the growth in India's agricultural and processed food exports in the current fiscal year by creating a necessary export eco-system and collaborating with key stakeholders in the agri-exports value chains,' M Angamuthu, Chairman of APEDA, said.

 

Agricultural product exports from India increased by 19.92% during 2021-22, reaching USD 50.21 billion. The growth rate is remarkable because it exceeds the 17.66% growth rate of USD 41.87 billion achieved in 2020-21, despite unprecedented logistical challenges such as high freight rates and container shortages, among other things.

 

The increase in agricultural and processed food product exports is the result of the government's various initiatives for agricultural and processed food product export promotion, such as organizing B2B exhibitions in different countries and exploring new potential markets through product-specific and general marketing campaigns with the active participation of Indian embassies.

 

The government has also taken several initiatives to promote products with registered geographical indications (GI) in India, including virtual Buyer Seller Meets on agricultural and food products with the UAE and GI products, including handicrafts, with the United States. The government has recognized 220 labs across India to provide testing services to a wide range of products and exporters in order to ensure seamless quality certification of products to be exported.

The government on Monday notified the procedure to submit requests for seeking the approval of the inter-ministerial committee (IMC) to export wheat flour (atta) as per which the exporters would have to submit the purchase order or copy of the invoice along with documentary evidence in case the firm is ISO 22000 compliant.

 

'The export of maida, semolina (rava, sirgi), however remains free without any condition,' the Directorate General of Foreign Trade (DGFT) said in a trade notice.

 

As per the notice, for getting the required NOC from IMC for atta exports, exporters will be required to submit their request in ANF 2N application form (meant for export licence for restricted items) only through the online module of DGFT along with a processing fee of Rs 1,000.

 

The IMC will consider the applications in its weekly meetings every Thursday.

 

'In addition, export of all shipments approved by IMC shall be allowed subject to issuance of Quality Certificate by Export Inspection Council,' the DGFT said, adding that the quality certificate will be mandatory for export of atta and would have to be produced before the custom authorities for export clearance.

 

The approval of IMC for export of wheat flour will be valid for three months only.

According to data released by the Ministry of Commerce and Industry, agricultural and processed food product exports increased by 14 per cent in the first three months of the current Fiscal Year 2022-23 (April-June) compared to the same period in FY 2021-22.

 

Under the Agricultural and Processed Food Products Export Development Authority, the government set an export target of US$ 23.56 billion for the agricultural and processed food products basket for the fiscal year 2022-23. (APEDA). In the first three months of the current fiscal year, India’s agriculture and processed food exports achieved 25 per cent of the total annual export target.

 

According to data released by the Commercial Intelligence and Statistics, the overall export of products covered by APEDA increased to US$ 5987 million from US$ 5256 million in the previous fiscal period. The export target for April-June 2022-23 was 5890 million US dollars. Tea, coffee, spices, cotton, and marine exports are not included in the APEDA basket.

 

Fresh fruit and vegetable exports increased by 8.6 percent, while processed food products such as cereals and miscellaneous processed items increased by 36.4 percent. Fresh fruit and vegetable exports increased to US$ 697 million in the current fiscal year’s corresponding months. Other cereals exports increased to US$ 306 million, while meat, dairy, and poultry exports increased to US$ 1120 million in April-June 2022.

 

'We continue to provide technical and financial assistance to various stakeholders in the agricultural goods value chains for boosting exports of unique products from the country. Through creating a necessary eco-system of exports along with collaboration with key stakeholders in the agri-exports value chains, we are aiming to sustain the growth in India’s agricultural and processed food exports in the current fiscal as well,' M Angamuthu, Chairman, APEDA, said.?

 

Agricultural product exports from India increased by 19.92 per cent during 2021-22, reaching USD 50.21 billion. Rice exports increased by 13 per cent, while exports of meat, dairy, and poultry products increased by 9.5 per cent and exports of other cereals increased by 29 per cent.

 

The government has taken several initiatives to promote products with registered geographical indications (GI) in India, including virtual Buyer Seller Meets on agricultural and food products with the UAE and GI products, including handicrafts, with the United States.

As a part of the export consignment, about 600 kg of lemons have been exported to London, UK from Assam on Friday.

 

Taking to Twitter, Assam Chief Minister Himanta Biswa Sarma expressed happiness about the first consignment of the export plan.

 

'Happy to share that the first consignment of Assam lemon for export to UK has been dispatched from Baksa. About 600 kg of lemons have been sent as part of an export commitment by the producer at the rate of Rs 30 per kg for about 80 tonnes over the next 2 months from Gati, Salbari', Chief Minister Himanta Biswa Sarma tweeted'.

 

Earlier in July 2021, a consignment of 'Kazi Nemu' (Assam lemon) was exported from Guwahati to London.

 

In June last year, a consignment of ‘Leteku’ (Burmese grapes), grow in Assam’s Darrang district was exported to Dubai. (ANI)

India urged the World Trade Organization (WTO) to relax rules to allow the country to export foodgrains from its public stocks to nations facing food crises.

 

'WTO restriction that grains so procured cannot be brought to the market to export - it is a condition which exists from the Uruguay Round days,' finance minister Nirmala Sitharaman said on Friday. 'We have repeatedly said that (surplus) than what we have for our small farmers... we are quite willing to trade,' she said at a seminar on Strengthening Global Collaboration for Tackling Food Insecurity in Bali, Indonesia ahead of the third meeting of G20 finance ministers and central bank governors.

 

Questions Raised over MSP Scheme

 

WTO norms do not allow countries to export foodgrains from their public stocks procured at subsidised rates. India can help reduce hunger or food insecurity but there is hesitation on the part of the WTO. This at a time when the Russia-Ukraine conflict and climate change have created food shortages in many countries.

 

India has exported 1.8 million tonnes of wheat since May 13, when an export ban was imposed, to meet previously agreed commitments.

 

Many developed countries have alleged India has been providing minimum support prices to its farmers in violation of WTO rules.

 

In 2018, the US questioned the legality of India's minimum support price for rice, wheat, and cotton. Other countries such as Australia also raised questions regarding the Fair and Remunerative Price and the State Advised Price (SAP) granted to sugarcane farmers.

 

A group of about 70-80 countries led by Singapore is pushing WTO member countries to accept binding commitments to not extend export restrictions on foodgrains procured under the United Nations World Food Programme (WFP).

 

Some members have, however, voiced concerns over blanket exemptions for WFP food purchases due to domestic food security considerations.

 

Sitharaman said food, fuel, and fertilisers are global public goods and ensuring access to these for developing and emerging economies is critical. She said there is an urgency to strengthen food production and the global food system.

 

Sitharaman also shared India's experience, including robust gains in agriculture production, citizen-centric food security programmes, and innovative delivery mechanisms such as the One Nation One Ration Card scheme. 'There are ever so many such schemes through which we have ensured that the farmers in India, however difficult the environment may be, produced and their cost is met even if the market vagaries hit them negatively,' Sitharaman said.

 

Capital expenditure

Sitharaman said India's long-term growth prospects were embedded in public capital expenditure programmes and evidence-based policymaking is vital for resilient economic systems.

 

The budget presented in February raised capital expenditure by 35.4% for the current financial year to Rs 7.5 lakh crore to push a public investment-led economic recovery. The capital spending in FY22 was over Rs 6 lakh crore.

 

The finance minister also said that sustainable global recovery should pivot on climate actions and the focus needs to be on scaling up climate finance and propelling green transitions.

 

Participating in the second session of the G20 meet, Sitharaman shared views on the group's health agenda, including pandemic preparedness and response mechanisms.

 

She also highlighted the need for immediate mobilisation and deployment of resources for health emergencies.