Rice imports in flood-hit Bangladesh will rise in the coming months. Sources said that several private importers have already placed orders with Indian rice exporters. 'These are not government-to-government deals but mostly in the private sector domain,' a person with direct knowledge told India Narrative.

 

According to All India Rice Exporters’ Association, in 2020-21, Bangladesh imported 4,91,000 tonne of rice from India. In 2021-22 the amount increased to 9,14,000 tonne.

 

At a time when the Russia-Ukraine war has already pushed global food prices, these severe floods could trigger food insecurity too in Bangladesh as large qualities of household stocks, especially in the rural areas have also got washed away in the flood.

 

Bangladesh and northeast India are experiencing one of the worst floods in decades due to incessant rains from upstream regions since the middle of this month.

 

'The floods will now add to the pressure and all the gains that Bangladesh made in strengthening its food security are now eroding,' a trade analyst dealing in South Asian studies told India Narrative.

 

Bangladesh is home to 165 million, of whom 38 per cent are engaged in the agricultural and fisheries sector.

 

As the Russia-Ukraine crisis continues to disrupt the global trade of key foods such as wheat and vegetable oils, along with fertilisers, impacts are falling heavily on countries such as Bangladesh. 'Dependent on imports of those items to feed its large population, many poor and vulnerable to shocks, the country faces the prospect of rising food insecurity,' the International Food Policy Research Institute (IFPRI) said.

 

'Large crops have been damaged in Bangladesh and this will increase import demand from India. Our exporters are ready to supply as we have stocks which are more than sufficient. There is no question of banning exports,' Vinod Kaul, Senior Executive Director, All India Rice Exporters’ Association, told India Narrative.

 

About 56,000 hectare of paddy crops in Sylhet alone have been damaged. Sylhet, which is home to Boro rice cultivation, is one of the worst affected areas. Several types of rice are grown in Bangladesh, the main being Aus, Aman and Boro.

 

The grain yield for Boro rice is about 4,950 kg per hectare.

 

Kaul added that the sowing season for rice has just commenced. 'Indications are that sowing will be carried out normally this year with expectation of a more or less normal monsoon,' he said.

 

Bangladesh is one of the major rice producing countries in the world but its imports of the grain, which is a symbol of wealth in the South Asian nation, has been rising for the last few years, to keep pace with the increased demand.

 

Last week, the Sheikh Hasina government slashed the import duty of rice from 62.5 to 25 per cent on rice to boost inbound shipment of the grain. The new rate will be applicable till October 31.

 

Even though Bangladesh is the third-biggest rice producer in the world with 35 million tonne a year, it depends on imports from other countries to deal with shortages caused by natural disasters like floods and drought, Maritime Gateway, a publication focused on shipping and logistics industry, said in a report.

 

Besides India, Bangladesh imports rice from Vietnam, Pakistan, Philippines and China among other countries.

The second round of Foreign Office Consultations (FOC) held in Havana between India and Cuba on June 27 reviewed the entire gamut of their bilateral relations.

 

The Indian side was led by Saurabh Kumar, Secretary (East) while the Cuban side was led by Anayansi Rodriguez Camejo, Vice Minister of Foreign Affairs.

 

'During the FOC, both sides comprehensively reviewed the entire gamut of their bilateral relations, including development partnership projects, trade and economic relations, and cooperation in areas such as renewable energy, health including traditional medicine and yoga, biotechnology, agriculture, sports, health, science & technology and ICT,' said the Ministry of External Affairs in a tweet, adding that the two sides also exchanged views on regional and international issues of common interest including cooperation in the United Nations.

 

Adding further, Secretary (East) called on Deputy Prime Minister Ricardo Cabrisas and acting Minister of Foreign Affairs Gerardo Penalver and exchanged views on further enhancing bilateral ties between Cuba and India.

 

'Secretary East called on Deputy PM Cabrisas and held a courtesy meeting with acting Minister of Foreign Affairs @GerardoPPortal,' MEA spokesperson, Arindam Bagchi tweeted.

 

He further stated that an agreement on short-term credit worth 100 million Euros for procurement of rice from India for Cuba was signed between the two countries.

 

'A short-term credit agreement of Euro 100 million for procurement of rice from to was signed & a postal stamp released by the Government of Cuba to commemorate the 75th anniversary of India's independence. #AmritMahotsav', he said.

 

A special Postal Stamp was also released by the Government of Cuba to commemorate the 75th anniversary of India's independence.

 

The talks were held in a warm and friendly atmosphere.

 

India and Cuba maintain close contacts with each other in UN, NAM and other international fora and they enjoy excellent bilateral relations.

Kerala is reaping the reward of the India-UAE bilateral Comprehensive Economic Partnership Agreement (CEPA) which came into force on May 1.

 

Exports from the State are expected to go up in the coming months even as a visit by Prime Minister Narendra Modi to Abu Dhabi on Tuesday appeared to have cooled the embers with the Gulf Cooperation Council (GCC) nations over the alleged negative remarks by former BJP spokespersons about the Prophet.

 

In fact, the UAE as well as Saudi Arabia reacted more judiciously unlike Iran, Kuwait, and Qatar, which summoned Indian envoys to lodge a protest note and demand a public apology from the Indian government over the remarks.

 

The CEPA, which was signed in February this year, is expected to increase the total value of exports from Kerala to the UAE between $650 and $700 million this fiscal. 'The exports from the State to the UAE was $500 million during 2021-22,' K.M. Harilal, Joint Director General of Foreign Trade, Kochi, attached to the Ministry of Commerce and Industry, told The Hindu on Tuesday.

 

Hitherto only vegetables and fruits did not attract customs duty. All other Indian consignments were imposed a 5% duty in the UAE. 'Obviously, the India-UAE free trade agreement will give an edge to India over other countries. Kerala contributes a substantial portion of export in the gold jewellery segment. Last fiscal, exports were around $100 million. Now, this benefit will reach consumers and importers in the UAE,' Mr. Harilal said.

 

The State imports cashew worth $45 million from the UAE annually, besides spices ($38 million), coconut oil ($10 million), and marine products ($10 million). 'Exporters are getting orders in the range of 30-40 % after the India-UAE free trade pact,' he said, adding that the impact would be known in the next six months.

 

Mr. Harilal said almost all districts in the State contributed to the export business to the UAE. If Kozhikode is exporting footwear, tea and spices are from Idukki, marine products are from Alappuzha and Ernakulam, coconut oil and gold ornaments are from Thrissur and Ernakulam, coffee is from Wayanad, cashew is from Kollam, and plywood is from Ernakulam. Garments are also exported to the UAE though some units are in Tirupur, Tamil Nadu, he added.

 

Every consignment, he said, should possess a certificate of origin to secure 100% exemption from customs duty in the UAE. The minimum value-addition for any imported product is 45%, while for gold, it is 3.5%.

 

Overall, the CEPA is expected to increase the total value of bilateral trade in goods to over $100 billion and trade in services to over $15 billion within five years.

Prime Minister Narendra Modi told the G7 that India's agricultural expertise could be deployed to ensure food security and called on the grouping to ensure regular fertiliser supplies, which have been disrupted by the war in Ukraine. He called for an end to the conflict through dialogue, pointing out that the impact of the war was global.

 

'Can the G7 create a structured system for the widespread use of Indian agricultural talent in its member countries?' the Prime Minister said on Monday at a session on food security held on the sidelines of the G7 summit in Germany. 'With the help of traditional talent of India's farmers, food security will be ensured to G7 countries.'

 

Modi reiterated that talks were the way forward to end the Ukraine war. 'We are meeting amid an atmosphere of global tension,' he said. 'India has always been in favour of peace. Even in the present situation, we have constantly urged for the path of dialogue and diplomacy. The impact of this geopolitical tension is not just limited to Europe. The rising prices of energy and food grains are affecting all the countries. The energy and security of developing countries is particularly at risk.'

 

He suggested that the G7 develop a structured system for the use of India's farming skills. He sought the G7's cooperation in keeping the fertiliser supply chain running smoothly. 'We are trying to increase the production of fertilisers in India and seek cooperation from G7-countries in this regard,' he said.

 

Modi noted that India had immense agricultural manpower compared with the countries of the G7. Indian agricultural skills had helped give new life to traditional agricultural products such as cheese and olive in some of the G7 countries, he said.

 

He also drew attention to the natural farming revolution taking place in India. 'Your experts can study this experiment. We have shared a non-paper on this subject with all of you,' Modi said.

 

The Prime Minister said millets offer a way to ensure food security.

 

'Next year, the world is celebrating the International Year of Millets,' he said. 'On this occasion, we should run a campaign to promote a nutritious alternative like millets. Millets can make a valuable contribution to ensuring food security in the world.'

 

The PM pointed out that India had supplied food grains to many countries in need, including about 35,000 tonnes of wheat as humanitarian aid to Afghanistan in the last few months. After the recent earthquake there, India was the first country to deliver relief materials. 'We are also helping our neighbour Sri Lanka to ensure food security,' Modi added.

 

Foreign secretary Vinay Kwatra told reporters, 'India is looked upon as a solution provider by all, which was quite evident by the body language and camaraderie of leaders with Prime Minister Narendra Modi.'

India and UK concluded the fourth round of Free Trade Agreement (FTA) negotiations closing 11 out of the 26 chapters, a commerce ministry official said on Monday, adding that both the countries will begin the fifth round next month. 

 

The trade negotiations with the UK assume special significance for the domestic textile sectors as duty-free textile exports would bring the Indian textile industry at par with major textile exporters such as Bangladesh and Vietnam. 

 

Government officials said that the India and UK FTA trade negotiations that began in January this year will for the first time cover issues ranging from gender, labour and environment and not tariffs on merchandise goods. 

 

'For this round of negotiations, detailed draft treaty text was advanced across the majority of chapters. Technical experts from both sides came together for discussions in 71 separate sessions covering 20 policy areas,' the joint statement released by the British High Commission stated. 

 

The commission added that the negotiation officials undertook these technical talks in a hybrid fashion – with some of the teams meeting in London and most officials joining virtually.

 

The agreement is estimated to double India-UK bilateral trade to about $100 billion by 2030. Besides, the pact aims to cover 65% of goods and up to 40% of services, with the coverage in goods expected to go up to 90% in the full agreement.

 

Mint had reported that India and the UK had covered significant ground in the last two rounds with the UK agreeing to eliminate duty on rice and textile goods, while India is likely to allow the duty-free entry of British apples, and UK-manufactured medical devices, and machinery.

The proposed free trade agreements (FTAs), including with the UK, European Union and GCC would open new opportunities to boost India's exports in these markets, FIEO President A Sakthivel said.

 

Federation of Indian Export Organisations (FIEO) also said the government initiatives are helping the country record a healthy growth rate in exports.

 

Ongoing negotiations with the UK, the EU, GCC (Gulf Cooperation Council), etc will throw open new opportunities for Indian exporters, Sakthivel said in an event on the exports sector.

 

The GCC was established in 1981 and its six members are the United Arab Emirates, Saudi Arabia, Qatar, Oman, Kuwait and Bahrain.

 

India is actively negotiating FTAs with these countries and blocs. The European Union (EU) team is in New Delhi to hold negotiations with Indian officials on the proposed bilateral trade and investment agreement.

 

On June 17, India and the EU formally resumed negotiations on the proposed agreement, after a gap of over eight years.

 

India had started negotiations for a trade pact, dubbed the Bilateral Trade and Investment Agreement (BTIA), with the 27-country bloc in 2007, but the talks stalled in 2013 as both sides failed to reach an agreement on key issues, including customs duties on automobiles and spirits, and the movement of professionals.

 

Also, several rounds of negotiations have been completed with the UK for a comprehensive trade pact. Both countries are aiming to conclude the talks by Diwali.

 

To further boost exports, Sakthivel suggested that the government implement certain measures such as linking issuance of RoSCTL (Rebate of State & Central Taxes and Levies) and RoDTEP (Remissions of Duties and Taxes on Exported Products) with export realization for better value; and inclusion of sectors like iron and steel, pharma, and chemicals under the ambit of RoDTEP.

 

He also urged for a revised TMA (transport and marketing assistance) for the agri sector, solution on money stuck in export made to Sri Lanka, implementation of rupee payment system for export to Russia, and creation of MSME market promotion fund.

Bangladesh has conveyed that it will need to import at least 6.2 million tonnes of wheat from India in the current fiscal (2022-23).

 

While Dhaka will need 600,000 tonnes of wheat through government-to-government deals, it would need almost a similar quantity on a government-to-private business basis, the Bangladesh Ministry of Food (Foreign Procurement) said in a communication to its High Commissioner in New Delhi Muhammad Imran on June 3.

 

This came out in a letter senior Assistant Secretary of Bangladesh's Ministry of Food, Muhammad Mahabubur Rahman, wrote to Imran, according to Indian Food Ministry sources.

 

Mahbubur Rahman said Bangladesh would need another five million tonnes in the ongoing fiscal year.

 

Rahman's letter to Imran came following a communication from the latter saying India's Ministry of External Affairs wanted details about Bangladesh's wheat requirement.

 

India has imposed curbs on wheat exports from May 13. However, the government said it was open to supplying the cereal to neighbouring and vulnerable countries mainly on a government-to-government basis.

 

The Indian Food Ministry official said the Bangladesh government has already ordered one lakh tonnes of wheat while private businessmen ordered three million tonnes of wheat, reports our New Delhi correspondent.

 

Indian Food Ministry Secretary Sudhanshu Pande told the media last week that India has exported 1.5 lakh tonnes to Bangladesh since the curbs were imposed on May 13.

 

Pointing out that Bangladesh government had issued LCs to Singapore-based Agrocorp International Pvt Ltd and India's Bagadiya Brothers for the import of 50,000 tonnes of wheat each from India, Rahman said LCs to the tune of nearly seven lakh tonnes had been issued by the private sector. But Rahman's letter to Imran had not mentioned whether the LCs were issued before the restrictions went into force.

 

Bangladesh's annual wheat demand is at least 7.5 million tonnes.

 

'Our dependence on India has been increasing over the last few years due to low prices and short shipment time. Moreover, after the outbreak of war between Russia and Ukraine, India became our major source of wheat import,' according to Rahman.

 

Bangladesh imported 1.16 million tonnes in 2020-21 FY and 4.08 million tonnes of wheat from India in FY 2021-22. It was the biggest importer of wheat from India in 2021-22.

 

Though Russia was the main supplier of wheat to Bangladesh, the Ukraine war has affected supplies, forcing it to turn to India. One of the advantages for Bangladesh to buy from India is that it can get the consignments by road, apart from the sea.

 

India has put curbs on wheat exports in order to arrest its price surge in the domestic market and a possible fall in wheat production due to a sudden severe heat wave in March-April.

The Indian Food Authority, FSSAI has issued an order regarding operationalisation of the standards of crude corn (maize) oil in the FSS (Food Product Standards and Food Additives) Regulations, 2011.

 

The standards of crude corn oil have been incorporated through FSS (Food Product Standards and Food Additives) Amendment Regulations 2022 and will be operationalised immediately.

 

According to the FSSAI, it was done to allow the food businesses to import crude corn oil.

 

'The draft amendment regulation is already notified on the FSSAI website for public comment. Meanwhile, to allow the FBOs to import crude corn oil, it has been decided to operationalise the provisions of the proposed draft amendment with immediate effect,' reads the order issued by the FSSAI.

 

The amendment proposed that in the FSS (Food Products and Food Additives) Regulations, after the sub-regulation 2.2.8 related to peroxide value of oils and fats, sub regulation  2.2.9 shall be inserted as ‘Crude Solvent Extracted Corn (Maize) Oil’.

 

The proposed regulation lays standards for corn oil as moisture % by weight at 0.25 max, refractive index of 1.4637-1.4675 at 40 degrees, 187-195 Saponification value, 103-128 Iodine value, 8.0 max Acid value, 2.5% by weight unsaponifiable matter and Flashpoint Penskey Martens (closed) mini 100 degree centigrade.

Prime Minister Narendra Modi on Monday met European Commission President Ursula von der Leyen here and held productive discussions as the two leaders reviewed the India-EU cooperation in trade, investment, technology and climate action, and exchanged views on contemporary global and regional developments.

 

Prime Minister Modi, who is in Germany on a two-day visit from Sunday for the summit of the G7, met von der Leyen on the sidelines of the G7 Summit at Schloss Elmau, the picturesque venue of the summit in southern Germany.

 

He said that he had an 'outstanding meeting' with the European Commission President.

 

'President @EU_Commission @vonderleyen and I had an outstanding meeting earlier today. We discussed ways to deepen investment linkages, efforts to combat climate change, boosting digital cooperation and other important issues,' Modi said on Twitter.

 

'PM @narendramodi and President of @EU_Commission @vonderleyen held talks on the sidelines of the G-7 Summit. Issues such as stronger trade ties, cooperation to mitigate climate change, emerging technologies and cultural linkages were discussed during the meeting,' the Prime Minister’s Office tweeted.

 

During their talks, Prime Minister Modi and the EU Commission President welcomed the resumption of negotiations on the trade, investment and geographical indication agreements, Ministry of External Affairs Spokesperson Arindam Bagchi said.

 

'Productive discussions held between PM @narendramodi & President @EU_Commission @vonderleyen on the margins of G7. Reviewed India-EU cooperation in trade, investment, technology, climate action. Welcomed resumption of negotiations on the Trade, Investment and GI Agreements,' Bagchi said on Twitter.

 

'PM @narendramodi meets with the President of @EU_Commission @vonderleyen. The #IndiaEU relationship is shaped by ever-growing bilateral cooperation and partnership,' the Official Account of India's Public Diplomacy, Ministry of External Affairs (MEA) said on Twitter.

 

This was their second meeting in two months after she visited New Delhi in April, her first visit to India as the president of the European Commission.

 

'The Prime Minister recalled President Leyen’s productive visit to Delhi in April 2022 during the Raisina Dialogue. The leaders expressed happiness on the resumption of negotiations on the Trade, Investment and GI Agreements between India and EU. They reviewed India-EU engagements in various sectors, including digital cooperation, climate action and technology & innovation,' the Ministry of External Affairs said in a statement.

 

'Both leaders also exchanged views on contemporary global and regional developments,' it added.

 

In April, Prime Minister Modi and von der Leyen announced the setting up of an India-EU Trade and Technology Council, a high-level strategic mechanism to tackle key trade, economic and technological challenges.

 

In their talks, both sides also agreed to launch the India-EU Trade and Technology Council (TTC), a strategic coordination mechanism to tackle challenges at the nexus of trade, trusted technology and security.

 

India and the European Union are eyeing to firm up the comprehensive trade and investment agreements before the commencement of the electoral cycles on both sides in 2024, EU Ambassador to India Ugo Astuto said on April 29.

 

India is the second country after the US to have such a mechanism with the 27-nation European Union.

 

In May last year, India and the European Union (EU) announced to resume negotiations for a balanced and comprehensive trade agreement after a gap of over eight years.

 

The EU is one of the largest investors in India, accounting for 16 per cent of total investments received between 2015-20 (83 billion euro between 2000 and 2021).

 

The EU said there are 4,500 European companies operating in India, contributing to the creation of over 1.5 million direct and 5 million indirect jobs in the country.

 

The Investment Facilitation Mechanism was established in 2017 to facilitate the entry for EU companies proposing to invest in India.

Prime Minister Narendra Modi on Monday suggested to the G7 to develop a structured system for use of the agricultural talent of India in the bloc’s member nations.

 

He also sought G7's cooperation to keep the value chain of fertilisers smooth on a global scale.

 

The prime minister was speaking at a session on food security and gender equality held on the sideline of the G7 summit at Schloss Elmau in Germany.

 

Modi noted that India had immense agricultural manpower compared to the countries of the G7. Indian agricultural skills had helped give new life to traditional agricultural products like cheese and olive in some of the countries of the G7. 'Can the G7 create a structured system for the widespread use of Indian agricultural talent in its member countries?' he said. 'With the help of traditional talent of India's farmers, food security will be ensured to G7 countries.'

 

The prime minister articulated India’s position on the Russia-Ukraine conflict.

 

'India has always been in favour of peace. Even in the present situation, we have constantly urged for the path of dialogue and diplomacy,' said Modi.

 

He also stated that the impact of the Russia-Ukraine conflict and the geopolitical tension between Russia and the western nations arising out of it was not just limited to Europe. 'The rising prices of energy and food grains are affecting all the countries. The energy and security of developing countries are particularly at risk,' he said.

 

The prime minister also stated that India had supplied food grains to many countries in need, including about 35,000 tonnes of wheat as humanitarian aid to Afghanistan in the last few months.