India has exported 1.8 million tonnes of wheat on the request of foreign governments since putting a ban on overseas sales of the staple on May 13, a senior government official said.

 

More than a dozen countries have requested Indian wheat shipments as a global food crisis triggered by the Ukraine war crimped availability, pushing up prices.

 

'Outbound shipments have gone to Bangladesh, Oman, the UAE and Afghanistan among others with an undertaking by their governments that Indian wheat should be used for their own consumption and not trade or exports,' said Sudhanshu Pandey, Union food secretary.

 

Last month, food minister Piyush Goyal said though India was not a major exporter of wheat, it would supply to 'friendly countries facing a food crisis'.

 

India banned the private export of wheat on May 13 after a scorching early summer impacted yields and cut output estimates by nearly 5%. The ban exempted wheat exports cleared for countries making a formal request for shipments to overcome acute shortages.

 

The G7 grouping of countries had criticised India for banning overseas sales of wheat saying it would 'exacerbate' a global crisis, but the Union government said it was prompted to bar export to mitigate likely risks to the country’s food security. 'The nation’s interest comes first and we have only regulated exports,' the food secretary said at the time.

 

The Union government and the UN World Food Programme this week signed an agreement to supply 10,000 additional tonnes to Afghanistan bringing total shipments to 50,000 tonnes. In Afghanistan, nearly 19 million people or half the population faces an acute food crisis, the WEP said in a statement earlier this week.

 

India has also shipped nearly 0.1 million tonnes of wheat to Bangladesh since the ban on exports came in force. Indonesia too has imported similar volumes after the export ban. Export requests from foreign countries are being vetted by the ministry of external affairs, said an official, requesting anonymity.

Bangladesh has called off its second wheat import tender in three weeks to purchase 50,000 tonnes as its latest one attracted only a single bidder.

 

In the latest tender, Intra Business Pte Ltd, Singapore, offered wheat of any origin such as Australia, Germany, Bulgaria, Romania or Canada at $476.38 a tonne, said Delhi-based exporter Rajesh Paharia Jain. 

 

Earlier tenders

Bid offers made in earlier tenders that ended on July 5, are alive and not cancelled. In the tender that ended on July 5, Bangladesh was offered 50,000 tonnes of wheat by Agrocorp International at $448.38 a tonne. 

 

However, this is the second tender to be called off in three weeks after another tender that closed on June 22 was cancelled. Dhaka had earlier rejected a sole bid received for a tender that ended on May 23. In that tender, Agrocorp International had offered the grain at $548.38 a tonne. 

 

The tenders have been floated by the Bangladesh government as part of its move to import one million tonnes (mt) of wheat this year to make up for the shortfall in supplies from Russia. 

 

Dhaka’s requirement

Last month, Dhaka told New Delhi that its dependence on Indian wheat has increased, and it would need at least 6.2 mt of wheat this fiscal to meet its increasing demand.

 

Bangladesh had received the lowest bid for wheat imports in the tender that was scrutinised on April 11. India’s Bagadia Brothers offered $399.69 a tonne in that tender. 

 

However, by the time Bangladesh floated its next tender on May 10 and opened it for scrutiny on May 23, wheat prices in the global market had surged as India banned the export of the cereal. 

 

Reason for Indian ban

India banned wheat exports as its crop this year was affected by a heatwave that swept across the country in March and April. Initially estimated at a record 111.34 mt, the crop was revised lower to 106.41 mt by the Ministry of Agriculture. The trader, however, pegs it even lower.

 

New Delhi was also affected by Food Corporation of India procuring only 19 mt of wheat from farmers for its buffers stocks against a record 43.33 mt last year. With Indian wheat in demand in the global market, andsupplies from Russia and Ukraine were affected by the war, the Narendra Modi government banned wheat exports on May 13. Russia and Ukraine, which are in an armed battle since February 24, make up 30 per cent of the global wheat trade. 

 

Other factors

Surging inflation and rising wheat prices were other factors behind the Indian ban. Until then, wheat prices ruled above Rs.2,400 a quintal against the minimum support price (MSP) of  Rs.2,015 a quintal fixed for this year. Prices are still above the MSP, though they have come off the highs seen in the first half of May. Currently, the average weighted modal price (the rate at which most trades take place) is Rs.2,077 a quintal. 

 

In the global market, benchmark wheat futures on the Chicago Board of Trade are currently ruling at $8.02, a bushel down sharply from $12.77 on May 17 soon after India’s export ban. 

 

According to the International Grains Council, wheat is currently offered for exports at $359 by Europe, while the US is offering its Soft Red Winter wheat at $330 a tonne. The US’s wheat is quoted at $379 and Argentine wheat at $430.

 

Global wheat supplies have improved, with the grain from Ukraine being shipped by train and road to ports in other countries. The UN, besides NATO and its allies have also said wheat would not be covered under the sanctions imposed on Moscow for its aggression against Kyiv.

The National Conference of State Agriculture and Horticulture Ministers has been organized after two years due to the Corona crisis, in Bangalore. It was inaugurated today in the presence of Shri Narendra Singh Tomar, Union Minister of Agriculture and Farmers Welfare, Dr. Mansukh Mandaviya, Union Minister of Chemicals and Fertilizers and Health and Family Welfare, and Chief Minister of Karnataka, Shri Basavaraj Bommai. This conference has been organized by the Union Ministry of Agriculture and Farmers Welfare coinciding with the ‘Azadi ka Amrit Mahotsav’, in which key issues will be deliberated upon to ensure the development of agriculture and farmers in the country.

 

The Union Ministers of State for Agriculture and Farmers Welfare, Shobha Karandlaje and Shri Kailash Choudhary, Union Minister of State for Chemicals & Fertilizers and New and Renewable Energy, Shri Bhagwanth Khuba, State Agriculture and Horticulture Ministers including Agriculture Minister of Karnataka, Shri B.C. Patil, Union Agriculture Secretary Shri Manoj Ahuja, Fertilizer Secretary Smt. Arti Ahuja, DARE Secretary and Director General of Indian Council of Agricultural Research (ICAR) Dr. Trilochan Mohapatra, Karnataka Chief Secretary Smt. Vandita Sharma and Senior officials of Central and State Governments/Institutions are participating.

 

Addressing the Inaugural ceremony, Shri Tomar said that the Central and State Governments are working together in the field of agriculture, yet we all bear the important responsibility to solve the challenges facing the agriculture sector, formulate policies and their proper implementation.

 

'Our country is the largest democracy, where there is diversity of ideology, language, geography and climate, but herein lies the strength of India. There is a need to discuss how this can be used in the interest of the States and the country in the context of agriculture. Agriculture is a very sensitive sector which is connected to crores of farmers. Work needs to be done without any vested interest on how the Centre and States can bring about a change in the lives of small farmers sitting in the villages. Prime Minister Shri Modi has recently said that whatever is happening on the land, that should also reach the lab. This needs to be looked into because till now the focus was on ‘Lab to Land,’' he said.

 

Shri Tomar said that the country has to depend on the import of fertilizers and the central government is incurring a subsidy of about Rs. 2.5 lakh crore rupees annually in the interest of farmers, so that the burden of rising prices internationally does not fall on our farmers. But there must be an end to this situation at sometime, he said.

 

'So now in the field of fertilizers also we need to be AatmaNirbhar (self-reliant), there is a need to ‘Make in India’,' said Shri Tomar.

 

Describing the importance of nano fertiliser, Shri Tomar said that the role of the states is important in promoting it. Due to the hard work of the farmers, the skill of the scientists and the policies of the Centre and States, agriculture in the country has developed better and is becoming sustainable. He asked the Ministers of the States to do their best work during their tenure for faster progress of agriculture.

 

On this occasion, Union Agriculture Minister Shri Tomar listed out the various topics to be discussed in the two-day conference. These include Digital Agriculture, Pradhan Mantri Fasal Bima Yojana, National Agricultural Market (e-NAM) and Farmer Producer Organizations (FPOs), taking Prime Minister Kisan Samman Nidhi to its saturation level, International Year of Nutritional Grain (2023), Rs 1 lakh crore worth of  Agricultural Infrastructure Fund, promotion of Natural Farming, New Age Fertilizers and New Technologies developed by ICAR.

 

In his address, Dr. Mansukh Mandaviya, while explaining the global situation of fertilizers, said that India has to import it in large quantities, the raw material is also very expensive, and yet the central government is giving excessive subsidy. Subsidy on DAP has been hiked from Rs. 512 in 2020-21 to Rs. 2,501 for the 2022-23 Kharif season. DAP price in India is lowest as compared to other countries. Dr. Mandaviya said that as per the directions of the Prime Minister, the burden of increased cost is not being passed on to the farmers and the government is committed to the easy availability of fertilizers across the country, but now there is a dire need to increase the use of nano fertilizers and undertake this as a campaign across the country. Requesting cooperation from the states in this regard, he said that district-wise data of availability of fertilizers should be maintained so that it can be properly managed and distributed. Strict monitoring should also be done that farmers' fertilizers is not diverted to industries anywhere. He said that model outlets will soon be launched across the country.

 

Karnataka Chief Minister Shri Bommai said that Agriculture is our culture and the mainstay of our country's economy and Indian agriculture sector is ensuring food security. He said that under the leadership of Prime Minister Shri Modi, many important policies have been formulated and concrete work done in the agriculture sector in the last 8 years and despite having a population of more than 130 crore, our country has become self-sufficient in food production. Mr. Bommai said that a country which is self-sufficient in food production becomes a self-respecting nation. He said that if the farmers get separated from the land then it will be very difficult, so it is important that the farmers remain attached to their land and we must make efforts to strengthen them further. Farmers will have to be strengthened in all aspects, - economically, socially and educationally.

 

Highlighting the achievements of Karnataka in the agriculture sector, he said that many schemes have been implemented in the state in the interest of agriculture and farmers. Describing the importance of investment in agriculture, he emphasized on ensuring the soil health and adopting best farming practices to increase its fertility. The Chief Minister thanked the Prime Minister, Agriculture Minister, Fertilizers Minister and the Center for their cooperation.

Banas Dairy will ship the first export consignment of Amul frozen french-fries produced at its newly-commissioned potato processing plant in Banaskantha district next month.

 

The frozen french-fries are manufactured at the Banaskantha District Cooperative Milk Producers' Union (Banas Dairy)'s potato processing plant located at Sanadar village in Diyodar taluka of the district, while it will be marketed by the Gujarat Cooperative Milk Marketing Federation Limited (GCMMF) under the Amul brand.

 

The plant’s first shipment will be to Philippines next month. The dairy has also received export orders from Malaysia, Japan, US, Canada and several European nations, including Netherlands and Ireland among others. The shipments will happen through Mundra port in Gujarat, officials informed.

 

'This will be the first consignment of potato products to be exported from the newly-commissioned potato processing plant. The shipment will leave next month. We have an order for 120 tonnes of french-fries,' said Sangram Chaudhary, Managing Director, Banas Dairy.

 

Notably, the Rs.140-crore plant having an installed capacity to process 48 tonnes of potato per day, was inaugurated by the Prime Minister Narendra Modi in April this year. Earlier, the dairy relied on the third-party manufacturers for potato products and a small quantity was exported to Canada, Singapore and Malaysia earlier.

 

This is the first export consignment from the dairy's own plant.

 

Besides french-fries, the potato processing plant makes frozen potato chips, aloo tikki, burger patty, potato wedges etc.

 

The Deesa region in the district is considered potato hotbed with heavy concentration of growers. 'There were sharp fluctuations in potato prices every year affecting many farmers. As a solution, we’ve decided to do value addition . We are executing forward contracts with farmers thereby securing their price and we get our desired quality of potato,' said Chaudhary.

 

This year, the dairy has procured about 10,000 tonnes of potato under the contractual agreement with farmers in the region. With sharp demand for potato products, the dairy is running short in supplies. 'Next year we are planning to procure about 25,000 tonnes of potato,' said Chaudhary adding that there were about 3,200 farmers connected with the dairy under potato cultivation agreement.

 

The dairy encourages santana variety for cultivation by distributing seeds sourced from agro-products major ITC under the long-term agreement.

Leading South Korean feedmaker Nonghyup Feed Inc. (NOFI) has issued an international tender to purchase up to 138,000 tonnes of animal feed corn and 65,000 tonnes of feed wheat, European traders said on Thursday.

 

The deadline for submission of price offers in the tender is also Thursday, July 14.

 

The corn is sought in two consignments each of up to 69,000 tonnes.

 

Shipment of the first corn consignment for arrival around Oct. 20 is sought if sourced from the U.S. Pacific Northwest coast between Sept. 16 and Oct. 5, if from the U.S. Gulf/East Europe between Aug. 27 and Sept. 15, from South America between Aug. 22 and Sept. 10 or from South Africa between Sept. 1 and 20.

 

Shipment of the second consignment for arrival around Oct. 30 is sought from the U.S. Pacific Northwest coast between Sept. 26 and Oct. 15, from the U.S. Gulf/east Europe between Sept. 6 and 25, from South America between Sept. 1 and 20 or from South Africa between Sept. 11 and 30.

 

One feed wheat consignment is sought for arrival around Oct. 10.

 

Wheat shipment is from the U.S. Pacific Northwest coast/Australia/Canada between Sept. 6 and 25, from the U.S. Gulf/Europe between Aug. 17 and Sept. 5, from South America between Aug. 12 and 31, from South Africa between Aug. 22 and Sept. 10 or from India between Sept. 1 and 20.

 

Asian corn purchasing was sparked in the past week after Chicago most-active corn futures < Cv1> traded below their levels after Russia’s Feb. 24 invasion of Ukraine, although prices have ticked up on concerns over yield losses amid forecasts of hot and dry weather in the U.S. Midwest grain belts.

India’s horticulture output, which includes fruits, vegetables, spices, flowers, coconut and medicinal plants, has registered a 2 per cent growth at 341.63 million tonnes (mt) in 2021-22, against 334.6 mt in the previous year. The growth has been significant in onion while mango, tomato, garlic and honey are some other products that clocked an increase in production.

 

'It has been a good sign that in recent years the horticulture production has continued the momentum in exceeding the production of foodgrain crops. Although the overall growth is marginal, it is still an achievement in view of negative growth in many items,' said an official after the release of the second advance estimates of horticulture crops for 2021-22.

 

India’s foodgrains output in 2021-22 crop year (July-June) is estimated to have increased to 314.51 mt from 310.74 mt in the previous year. This is largely because of 236.07 mt of rice and wheat production, which have 75 per cent share in total foodgrains output. 

 

The area under all horticulture crops has increased marginally to 27.74 million hectare from 27.48 million hectare.

 

Potato output dips

 

Onion production is estimated to rise to 31.70 mt from 26.64 mt in 2020-21, up by 19 per cent. Whereas potato production has declined to 53.58 mt from 56.17 mt and that of tomato has come down to 20.34 mt from 21.18 mt.

 

Production of all vegetable crops is estimated to have increased to 204.61 mt compared with 200.45 mt in 2020-21 while fruits output has risen to 107.10 mt from 102.48 mt.

 

Mango production is estimated have increased to 21.01 mt from 20.39 mt in 2020-21, up by 3.1 per cent. Apple production has surged to 2.44 mt from 2.28 mt and that of grapes has gone up to 3.45 mt from 3.36 mt and that of guava to 4.92 mt from 4.58 mt.

 

Flowers, spices dip

 

On the other hand, flowers output has dropped to 2.94 mt from 2.98 mt, aromatic and medicinal plants have dropped to 0.56 mt from 0.83 mt, coconut is down to 13.27 mt from 14.3 mt. Output of all plantation crops (excluding tea, coffee and rubber) has dropped to 15.38 mt from 16.63 mt and that of all spices to 10.9 mt from 11.1 mt

 

Country’s honey production has increased by 8,000 tonnes to 0.13 mt in 2021-22, the Agriculture Ministry said.

The Department of Agriculture and Farmers Welfare released the Second Advance Estimates of Area and Production of various Horticultural Crops for 2021-22 compiled on the basis of information received from States/ UTs and other Governmental source agencies.

 

Total Horticulture production in 2021-22 is estimated to be 341.63 Million Tonne, an increase of about 7.03 Million Tonne (increase of 2.10%) over 2020-21 (Final).

Increase in production of Fruits, Vegetables and Honey while decrease in production of Spices, Flowers,Aromatics & Medicinal Plants and Plantation Crops over previous year, is envisaged.

The Fruits production is estimated to be 107.10 Million Tonne compared to 102.48 Million Tonne in 2020-21.

The production of Vegetables is estimated to be 204.61 Million Tonne, compared to. 200.45 Million Tonne in 2020-21. 

Onion production is estimated to be 31.70 Million Tonne against 26.64 Million Tonne in 2020-21.

Potato production is expected to be 53.58 Million Tonne, compared to 56.17 Million Tonne in 2020-21.

Tomato production is expected to be 20.34 Million Tonne, compared to 21.18 Million Tonne in 2020-21.

India’s overall exports (Merchandise and Services combined) in June 2022* are estimated to be USD 64.91 Billion, exhibiting a positive growth of 22.95 per cent over the same period last year. The overall exports (Merchandise and Services combined) in the 1st quarter of FY 22-23 (April-June 2022)* are estimated to be USD 189.93 Billion, exhibiting a positive growth of 25.16 per cent over the same period last.

 

The overall imports in June 2022* are estimated to be USD 82.42 Billion, exhibiting a positive growth of 55.72 per cent over the same period last year. In the 1st quarter of the FY22-23, the overall exports are estimated to be USD 235.11 Billion, exhibiting a positive growth of 49.41 per cent over the same period last year.

 

MERCHANDISE TRADE

 

Merchandise exports in June 2022 were USD 40.13 Billion, as compared to USD 32.49 Billion in June 2021, exhibiting a positive growth of 23.52 per cent.

Merchandise imports in June 2022 were USD 66.31 Billion, which is an increase of 57.55 per cent over imports of USD 42.09 Billion in June 2021.

The merchandise trade deficit in June 2022 was estimated at USD 26.18 Billion as against USD 9.60 Billion in June 2021, which is an increase of 172.72 per cent.

Merchandise exports for the period April-June 2022 were USD 118.96 Billion as against USD 95.54 Billion during the period April-June 2021, registering a positive growth of 24.51 per cent.

Merchandise imports for the period April-June 2022 were USD 189.76 Billion as against USD 126.96 Billion during the period April-June 2021, registering a positive growth of 49.47 per cent.

The merchandise trade deficit for April-June 2022 was estimated at USD 70.80 Billion as against USD 31.42 Billion in April-June 2021, which is an increase of 125.34 per cent.

Non-petroleum and non-gems & jewellery exports in June 2022 were USD 27.94 Billion, registering a positive growth of 8.65 per cent over non-petroleum and non-gems & jewellery exports of USD 25.71 Billion in June 2021.

Non-petroleum, non-gems & jewellery (gold, silver & precious metals) imports were USD 38.53 Billion in June 2022 with a positive growth of 38.30 per cent over Non-petroleum, non-gems & jewellery imports of USD 27.86 Billion in June 2021.Non-petroleum and non-gems & jewellery exports during April-June 2022 was USD 83.62 Billion, an increase of 13.81 per cent over non-petroleum and non-gems & jewellery exports of USD 73.47 Billion in April-June 2021.

Non-petroleum, non-gems & jewellery (gold, silver & precious metals) imports were USD 108.97 Billion in April-June 2022, recording a positive growth of 34.80 per cent, as compared to Non-petroleum, non-gems & jewellery imports of USD 80.83 Billion in April-June 2021.

 

SERVICES TRADE

 

The estimated value of services export for June 2022* is USD 24.77 Billion, exhibiting a positive growth of 22.04 per cent vis-a-vis June 2021 (USD 20.30 Billion).

The estimated value of services import for June 2022* is USD 16.11 Billion exhibiting a positive growth of 48.62 per cent vis-à-vis June 2021 (USD 10.84 Billion).

The services trade balance in June 2022* is estimated at USD 8.67 Billion, which is a decline of 8.41 per cent over June 2021 (USD 9.46 Billion).

The estimated value of services export for April-June 2022* is USD 70.97 Billion, exhibiting a positive growth of 26.25 per cent vis-a-vis April-June 2021 (USD 56.22 Billion).

The estimated value of services imports for April-June 2022* is USD 45.35 Billion exhibiting a positive growth of 49.15 per cent vis-à-vis April-June 2021 (USD 30.41 Billion).

The services trade balance for April-June 2022* is estimated at USD 25.62 Billion as against USD 25.81 Billion in April-June 2021, which is a decline of 0.74 per cent.

The decline in rice crop yields in Thailand and Vietnam and their increased costs of production may turn out to be bonanza for India’s rice exports in the current fiscal year, trade sources said. India is exporting rice at around $360 a tonne to key markets at present while Thailand and Vietnam are offering the grain at around $ 420 a tonne. The gap, according to the sources, is expected to widen in the coming months. Besides, prospects of a reasonably strong kharif crop could enable Indian exporters to fetch higher realisations. Even in volume terms, India’s rice exports in the current year could match or slightly exceed last year’s record level of 21 million tonne, according to V Krishna Rao, president, All India Rice Exporters Association.

 

The prospects of another record in rice shipments come at a time when the country has imposed strict curbs on export of wheat due to depleting domestic stocks.

 

According to the United States Department of Agriculture (USDA) rice outlook report released in June, the global rice trade in 2022 calendar year are projected at a record 54.3 mt. 'India’s exports are projected to a record 22 mt and account for almost 41% of global shipments,' said the report. The USDA also stated that India’s projected rice exports are likely to exceed the combined shipments of the next three-largest exporters—Thailand, Vietnam, and Pakistan this year.

 

Trade sources said major rice producers such as Vietnam, China and Thailand have been raising the issue of high production and freight costs which would make their rice much costlier than what India offers. Exports in value terms this year could be $10-12 billion, an all-time high.

 

India has been the world’s largest rice exporter in the last decade — export earnings stood at $ 8.8 billion in 2020-21 and $9.6 billion in 2021-22.

 

According to commerce ministry data, India’s value of rice exports rose by 12% to $ 2.6 billion in the first quarter of the current fiscal.

 

'We will sustain the momentum in rice exports in the current fiscal through shipment of quality rice,' M Angamuthu, Chairman, Agricultural and Processed Food Products Export Development Authority (APEDA) said.

 

 

Indian economy is projected to grow 7.1-7.6 per cent in the current financial year despite shifting geopolitical realities across the world, a report said on Wednesday. In its India's economic outlook - July 2022 report, leading consultancy Deloitte India said that as 2021 was coming to a close, there was optimism in the air but the optimism received a jolt early this year as a wave of Omicron infections swept through the country and Russia's invasion of Ukraine happened in February.

 

'These events aggravated the pre-existing challenges such as surging inflation, supply shortages, and shifting geopolitical realities across the world with no definite end in sight.

 

'And the subsequent confluence of headwinds such as surging commodity prices and disruption in trade and financial transactions quickly deteriorated economic fundamentals that were trending up a few months back,' the report said.

 

Rising commodity prices, surging inflation, supply shortages, and shifting geopolitical realities across the world weigh on the growth outlook. Still, India will likely reign as the world's fastest-growing economy, it noted.

 

'India is expected to grow by 7.1-7.6 per cent in 2022-23 and 6-6.7 per cent in 2023-24. This will ensure that India reigns as the world's fastest-growing economy over the next few years, driving world growth,' the report said.

 

Reserve Bank of India (RBI) has projected a GDP growth of 7.2 per cent for the current fiscal ending March 2023.

 

Deloitte India said that it expects inflation and supply chain disruptions to remain entrenched for some time.

 

The domestic currency will likely recover some lost ground against the US dollar, but not before early next year. India's relatively strong recovery and the global slowdown will improve INR's strength, it added.

 

The rupee depreciated by 3 paise to close at a record low of 79.62 (provisional) against the US currency on Wednesday.

 

'The desire of global businesses to look for more resilient and cost-effective investment and export destinations during difficult times, among other factors, could work in India's favour,' Rumki Majumdar, Economist at Deloitte India, said.

 

The report also said that uncertainties in the global business ecosystem will pose significant risks.