AP Markfed scripted a new history as the first state government agency to directly handle the exports from India. Markfed, which procured tobacco directly from the farmers under market intervention during 2020 market crisis, has started export of tobacco stocks to the USA.

 

Markfed MD PS Pradyumna said they have clinched a deal with a big tobacco trader in US to procure about 120 tonnes of stock. 'We have purchased about 13 million kg of tobacco from the growers following instructions of chief minister YS Jagan Mohan Reddy in 2020. We have disposed almost 75 per cent of the stocks in domestic market since then and bagged the tender to export about 120 tonnes of the stock to Virginia in the USA,' said Pradyumna. Interestingly, AP Markfed is the first agency of a state government in the country to get the direct export licence and contract to export the stock.

 

Tobacco growers rushed to the Centre to press the national level marketing agencies like Nafed to purchase the stocks to prevent the crisis situation. The price fall sent shock waves among the tobacco growers as a similar crisis in 2018 had prompted many farmers to commit suicide. Although Union commerce ministry held discussions with traders, the prices further went down due to the poor export orders following the outbreak of Covid-19.

 

With no assistance from the Centre, Jagan took a risky decision to press Markfed into purchase of stocks. Although Markfed had no expertise in purchase of tobacco as it had never participated in the auctions, chief minister directed Pradyumna to shoulder the burden to provide relief to the growers.

Only one trading house is believed to be participating in the tender on Tuesday from Bangladesh’s state grains buyer to purchase and import 50,000 tonnes of wheat, European traders said.

 

Trading house Agrocorp was reported to be the only participant. No purchase has been reported, traders said.

 

Agrocorp was believed to have offered an estimated $448.38 per tonne c&f liner out with supplies sourced optionally from Bulgaria, Romania, the United States, Canada, Australia or India. Liner out terms include some ship unloading costs for the seller.

 

Traders said reasons for the low participation in the tender included generally tight supply in the world market, complex tender terms in Bangladesh and falling prices and price uncertainly.

 

Chicago benchmark markets were closed for a holiday on Monday. U.S. wheat futures on Friday fell back from levels hit after Russia’s invasion of Ukraine in February sent prices soaring. GRA/

Bangladesh was in recent months a major importer of wheat from India, which has recently restricted grain exports, seriously tightening supply in Asian markets.

 

Bangladesh is also among the importers hit by disruption to Black Sea region wheat exports.

Source: Reuters (Reporting by Michael Hogan in Hamburg, additional reporting by Ruma Paul in Dhaka, editing by Jason Neely)

20 per cent jump in value on high demand, prices likely to be firm till September

 

 

Helped by lower production and a rise in overall global commodities prices after the Russia-Ukraine war, India’s Basmati rice exports increased 13 per cent in value to $698 million during the first two months of the current fiscal. The per-unit value realisation rose to a six-year high, topping $1,000 a tonne.

 

The volume of shipments was lower, though. The buoyancy in Basmati prices in export markets is likely to continue until September, by when there will be an indication about the size of the next crop, experts said.

 

Drop in shipments

There is a jump of 20 per cent in export unit value realisation to $1,019/tonne during April-May against $846/tonne in the year-ago period, according to official data. But shipments have dropped (in terms of volume) by 6 per cent to 6.86 lakh tonnes (lt). 'Current marketing season (October-September) opened with firm demand sentiments for Basmati, which was later influenced by macro factors in order to move FOB prices up. This trend will continue in the short term even if non-tariff barrier distorts the trade,' said S Chandrasekaran, a trade policy analyst.

 

He said the average export price realisation started this season at $890/tonne in November 2021 and reached $1,021/tonne in May 2022 (up 15 per cent in seven months), whereas in the previous season it started with $805/tonne in November 2020 and was $842/tonne in May 2021 (up 4.6 per cent).

 

Echoing similar outlook, Vijay Setia, a former president of All India Rice Exporters Association, said in the event of a supply crunch this had to have happened. Last year, there was a massive reduction in the production of Pusa 1121 and Pusa 1509 basmati varieties, which make for the bulk of India’s basmati rice exports, he said. 'Exporters had also slowed their sales after realising that the lower production was pushing prices up. Currently, Pusa 1151 paddy is selling at about ?40,000/tonne, which is a record for basmati. This buoyancy may continue for the next two months as everyone is eagerly waiting to know the next crop size,' Setia said.

 

Industry sources said about 2-2.5 lt of basmati rice exports got contracted for Iran last month which buoyed the sentiments. Even in local markets, basmati rice which used to be sold at ?40/kg currently commands a price of close to ?60/kg, a huge 50 per cent jump, traders said.

 

According to official data, India’s basmati rice exports dropped 12 per cent to $3.54 billion last fiscal from $ 4.02 billion in 2020-21. In volume, the fall was nearly 15 per cent at 39.48 lt from 46.3 lt.

The Department of Consumer Affairs and German Federal Ministry for Economic Affairs and Climate Action (BMWK) organised two days event on Quality Infrastructure (QI) which started here today. On the first day, experts discussed QI and emerging topics such as circular economy. The event will conclude on Friday, 8th July.

 

During his address, the Secretary, Department of Consumer Affairs, Shri Rohit Kumar Singh, underlined the importance of the Indo-German partnership, which was emphasised with the visit of Hon’ble Prime Minister Shri Narendra Modi to the G7 meeting. He also underscored the importance of consumer protection through standards and certification processes. Joint efforts are necessary to improve product quality and safety, such as through the various technical exchanges during the Indo-German QI-Days. The Secretary welcomed the focus on emerging topics such as artificial intelligence, smart farming and circular economy, which are priorities for the Indian government. He urged involvement of all relevant stakeholders in the discussions on the various aspects of QI, to contribute to the success and the tangible results of this cooperation.

 

Dr Ole Janssen, Deputy Director General for Innovation and Technology Policy at BWMK, the co-chair from the German delegation, in his address, highlighted the importance of the bilateral cooperation on quality infrastructure and noted that the Indo-German QI-Days provided an important platform for dialogues to share information and expertise on issues of mutual interest to support bilateral trade and economic activities. Dr Janssen emphasised that the delegation visit to India has underlined the strategic partnership between Germany and India for innovation, and digital and green transformation.

 

The visit of the delegation from the German Federal Ministry for Economic Affairs and Climate Action (BMWK) to India underlines the importance of Indo-German Working Group on Quality Infrastructure for trade, product safety and consumer protection and provides an excellent opportunity to the experts from both the sides to improve the mutual understanding of the German and Indian approaches to quality infrastructure (QI).

 

Quality infrastructure is a system that covers everything needed to ensure safe, high-quality products and services: from standardisation, conformity assessment (testing, inspection and certification) and accreditation to metrology and market surveillance. These elements form the system and processes that protect people, health and the environment. Quality infrastructure plays a vital role for business, innovation and trade – both nationally and across borders.

 

It is therefore important for a country to have a well-designed and coherent  QI system which is also in line with international best practices to play a vital role in global trade. They reduce time, cost and business uncertainty for companies as well as ensure consumer safety.

 

The two-days event will see an expert exchange on market surveillance wherein both the sides will exchange different aspects for a robust market surveillance system. In addition, the 1st Indo-German Forum on Technical Regulation and Conformity Assessment, in which Indian and German experts will discuss how India and Germany can work together to improve the ease of doing business as well as the involvement of the relevant stakeholders in technical regulation. The strategic dialogue aims to improve the preparedness of the industry on upcoming regulatory changes. At the same time, it intends to enhance the effectiveness of regulations through the exchange on approaches to technical regulation in Germany and India as well as good regulatory practices.

 

The 3rd Indo-German Forum on Standardisation, during which standardisation bodies will discuss approaches and criteria for emerging topics, such as Artificial Intelligence, electromobility, circular economy, hydrogen and smart agriculture. The forum was established in 2019 and enables both countries to collaborate on issues of mutual interest that are relevant for the standard bodies, industry as well as consumers. During a panel discussion, Indo-German experts will also discuss role of standardisation roadmaps and integration of research in standard development processes.

 

An expert exchange on Circular Economy, which will discuss the role of QI in enabling and supporting the ecological transformation of our economies considering the developments and priorities in QI and at the national and international policy level. In the panel discussion, experts emphasised the role of standards and certification for the transition to a circular economy across different sectors.  

 

The Indo-German QI-Days will be attended by German and Indian stakeholders including Indian ministries (DPIIT, MeitY, MoEFCC), NITI Aayog, standardisation and accreditation bodies (BIS, DIN, DKE, NABCB, DAkkS, BAM), industry and their associations (FICCI, CII, VDMA, IGCC), research bodies (Frauenhofer-Gesellschaft).

Gujarat and Haryana Governments offer incentives; national conclave stresses benefits to farmers, consumers

 

Following the footsteps of the Gujarat and Haryana Governments, the Centre has decided to promote the cultivation of dragon fruit, known as a 'super fruit' for its health benefits. The Centre feels that considering the cost effectiveness and global demand for the fruit due to its nutritional values, its cultivation can be expanded in India. At present, this exotic fruit is cultivated in 3,000 hectares; the plan is to increase cultivation to 50,000 hectares in five years.

 

The Gujarat Government recently renamed dragon fruit as kamlam (lotus) and announced an incentive for farmers who cultivate it. The Haryana Government also provides a grant for farmers who are ready to plant this exotic fruit variety. The fruit is considered good for diabetic patients, low in calories and high in nutrients like iron, calcium, potassium and zinc.

 

Addressing a national conclave on the fruit here on Thursday, Union Agriculture Secretary Manoj Ahuja said the demand for the fruit is high in domestic and global markets because of its nutritional values. 'Fifty thousand hectares in five years is an achievable target. The demand for the fruit will remain. Prices for farmers will also be good. The benefit is that this fruit can be cultivated in degraded and rainfed land,' Mr. Ahuja said. He added that the Centre will assist States in providing good quality planting materials to farmers.

 

Talking to The Hindu on the sidelines of the conclave, he said the Centre can also provide specific target-based help to States and farmers under the Mission for Integrated Development of Horticulture (MIDH). 'Processing infrastructure can also be developed with the help of the Food Processing Ministry. Its cultivation will be beneficial for farmers and consumers. It is a win-win situation for all,' he added.

 

According to the authorities, and the Indian Council of Agriculture Research, the fruit plant doesn’t need much water and can be cultivated on dry land, too. Horticulture Commissioner Prabhat Kumar told The Hindu that dragon fruit is now sold at a price of ?400 per kg and the effort is to make it available to consumers for ?100 per kg. 'The cost of cultivation is initially high. But the plant doesn’t need productive land; it gives maximum production from non-productive, less fertile area. This is beneficial for a lot of farmers,' Dr. Kumar said.

 

The Centre plans to come up with an annual action plan to motivate more State governments. At the moment, Mizoram tops among the States that cultivate this fruit, which is indigenous to Mexico and is now produced mainly in Vietnam. The export of the fruit has made a huge contribution to Vietnam’s GDP. 'All the States in India except cold areas are suitable for dragon fruit plants. Market demand so high as production is less,' G. Karunakaran of the Indian Institute of Horticultural Research said.

 

Dr Karunakaran added that India is now importing about 15,491 tonnes of dragon fruits and has potential to match the production of China, where cultivation of the fruit takes place in 40,000 hectares, and Vietnam, which grows the fruit in 60,000 hectares. 'The initial investment high. But it gives fast returns within a year. The red and pink varieties of the fruit give better yield,' Dr. Karunakaran said at the conclave.

Jagan launches Indo German Global Academy for Agroecology, Research and Learning in Pulivendula

 

Chief Minister Y.S. Jagan Mohan Reddy formally inaugurated the Indo German Global Academy for Agroecology, Research and Learning (IGGAARL) in Pulivendula constituency of Kadapa district on Thursday.

 

The academy is a fallout of the joint effort between the Federal Government of Germany and the Government of India to strengthen the ongoing initiatives in the State and develop the science behind natural farming.

 

The IGGAARL will encourage research through competitive grants, involving globally and nationally acclaimed research institutes and universities, besides working closely with the Rythu Sadhikara Samstha (RySS), which drives the Andhra Pradesh Community-managed Natural Farming (APCNF).

 

Mr. Jagan Mohan Reddy said the State was taking a slow, yet formidable step towards natural farming, as the centre would take up training programmes for farmers at the grassroots level.

 

With knowledge transfer, the institute aimed at transforming 10,700 farmers into ‘farmer scientists’

 

The idea was to bring down the cost of production and, at the same time, focus on improving yield as well as quality of the produce.

 

The Chief Minister also said that the Rythu Bharosa Kendras (RBK) would make necessary products and tools available for the farmers at the village level.

 

Jochen Flasbarth, Secretary of State in the Ministry of Development Cooperation, called 'production of enough food' as a top priority, along with addressing land degradation, biodiversity loss, water scarcity and pollution.

 

'Together, we are pursuing the 2030 agenda and implementation of Paris Climate Agreement,' he added.

 

Christoph Kessler, Director of KfW, The German Development Bank’s India Office, said the German embassy had appraised the national farming programme before recommending the same to the German government.

 

Agriculture Minister Kakani Govardhan Reddy, district in-charge Minister A. Suresh, MP Y.S. Avinash Reddy and Collector V. Vijayarama Raju took part.

The share of Chinese imports in the country's total inbound shipments has declined to 15.4 per cent in 2021-22 from 16.5 per cent in 2020-21, sources said on Thursday. They also said the major items imported from China into India are used for meeting the demand of sectors like telecom and power.

 

Citing some examples, they said imports like Active Pharmaceutical Ingredients (APIs) and drug formulations provide Indian pharma industry raw material for producing finished goods which are also exported.

 

Increase in imports of information and communication technology products and medical and scientific instruments can be attributed to the surge in demand of these products during COVID-19 times.

 

 

'Moreover, the rising prices of commodities globally have also played a significant role in adding to import value,' one of the sources said.

 

Exports to China increased marginally to USD 21.25 billion last fiscal from USD 21.18 billion in 2020-21, while imports rose to USD 94.16 billion from about USD 65.21 billion in 2020-21.

 

India's exports to China at USD 21.2 billion in 2021-22 were its third highest, after the US and UAE. Exports to the neighbouring country stood at USD 11.9 billion in 2014-15.

 

Further, sources stated that imports of mobile phones from China dropped by 55 per cent to USD 626 million in 2021-22, from USD 1.4 billion in 2020-21.

SOPA expects the acreages to be same or exceed last year’s levels

 

Sowing of soyabean is in full swing in the key growing areas of Central India with the pick up in monsoon rains over the region.

 

As per the latest sowing figures released by the Soyabean Processors Association of India (SOPA), the oilseed has been planted in over 70 lakh hectares(lh) across the country. With brisk sowing taking place in key States like Madhya Pradesh, Maharashtra and Rajasthan, SOPA expects the acreages to be same or exceed last year’s levels. Soyabean was planted in about 120 lh last kharif.

 

As on July 6, soyabean has been planted in about 30.50 lh in Madhya Pradesh, 26 lh in Maharasthra, 7 lh in Rajasthan, 2.60 lh in Telangana, 2.37 lh in Karnataka and about 1 lh in Gujarat. The oilseed has been planted in about 0.14 lh in Chhatisgarh and 0.46 lh in other States. 'Sowing is in progress in full swing and we are confident of reaching near last year’s figures or even a little higher, depending on how the rains progress. The next five days are crucial,' SOPA’s executive director D N Pathak said.

 

There are enough seeds, enough fertiliser and other inputs. 'There’s absolutely no issue as a far as the availability of inputs are concerned,' Pathak said.

 

Madhya Pradesh, Maharashtra and Rajasthan account for 91 per cent of the soyabean acreages in the country. As per the IMD data, in MP, cumulative seasonal rainfall this monsoon till date has been deficient in 20 districts, normal in 18 districts, excess in 13 and largely excess in one district. Similarly, in Maharashtra cumulative rains have been deficient in 8 districts, while the precipitation has been normal in 23 and excess in five districts. In Rajasthan, rainfall has been large excess in 9 districts, excess in 12 districts, normal in eight and deficient in four districts.

 

Prices

The Centre has declared a minimum support price(MSP) of ?4,300 per quintal for soyabean. The market prices of soyabean are ruling between ?6,200-6,500 levels, about 50 per cent higher than the MSP. The soyabean prices have softened a bit in the recent months following the global trend.

 

The global prices of edible oils, which flared up with the outbreak of Russia-Ukraine war have now fallen by 30-35 per cent. The decline in global edible oil prices will have an impact on the soyabean prices in India, Pathak said. 'We are having huge carryover stocks. The farmer was holding the stocks till the sowing takes place and now I expect these soyabeans to come into the market at a good price,' Pathak said.

The Union finance minister Nirmala Sitharaman on Thursday asked the Niti Aayog to prepare a report that maps all the industrial zones including industrial corridors, logistics parks and pharma hubs to be incorporated under the PM Gati Shakti initiative. Sitharaman also urged the shipping ministry to explore linkages that can be achieved between seaports and the industrial corridors.

 

These suggestions were made by the minister while she chaired the first meeting of the Apex Monitoring Authority for the National Industrial Corridor Development Programme(NICDP).

 

'I would like the NITI Aayog to map all this (industrial corridors, freight corridors, defence corridors, manufacturing zones, textile parks, logistics parks, medical and pharma hubs). Map it all and tell us where you see a possibility for bringing them under the PM Gati Shakti,' Sitharaman said. 'I find many of them still lying loose and unconnected. Mapping it up will probably give a better idea of how they can all come into this scheme of things,' she added.

 

She added that Gati Shakti National Master Plan will bring greater coherence in all investments pertaining to infrastructure projects.

India Thursday imposed restrictions on outbound shipments of wheat flour (atta), refined flour (maida) and semolina (rava/sirgi), in a move aimed at containing price rise.

 

New Delhi had banned wheat exports in May. Exporters of these commodities would now need approval of the inter-ministerial committee on export of wheat for shipments from July 12.

 

'Export policy of wheat flour (atta) remains free but export shall be subject to recommendation of the inter-ministerial committee on export of wheat,' the Directorate General of Foreign Trade said in a notification. The new approval framework will be applicable for wheat flour, refined flour, semolina, wholemeal atta and resultant atta.

 

 

According to the notification, the necessary modalities with regard to quality of wheat flour will be notified separately. The provisions under the Foreign Trade Policy regarding transitional arrangement would not be applicable under this notification.

 

In 2021-22, India exported wheat flour worth $246.57 million. In May, India banned wheat exports in a bid to check high prices in the domestic market amid concerns of wheat output being hit by a scorching heat wave.