India is on track to achieve the $400-billion export target in the current fiscal and is negotiating trade agreements with countries like the UAE, the EU and Canada, Commerce and Industry Minister Piyush Goyal said on Wednesday. In a reply during Question Hour in the Lok Sabha, he said the prices of most of the commodities, including petroleum products, are prevailing high and because of this there is a stress on all sectors.

 

However, international prices of finished products have commensurately increased and hence the exports of these products have not faced detriments.

 

'For 10th month in a row, April 2021 to January 2022, India has posted over $30 billion of exports. It is a record, we have already crossed $334 billion of exports which is more than the highest ever that India has done in full 12 months period.. We are well on track to achieve $400 billion of exports,' Goyal said.

 

The minister said that the government is working to negotiate free trade agreements (FTA) or comprehensive economic partnership so that Indian exporters too get similar price advantage benefits.

 

'We have launched FTA negotiations with the UAE, Australia, the United Kingdom, the EU, Canada. We are also in dialogue with GCC countries -- the bloc of six countries in the Middle East-- who have shown keen interest in FTA with India and we hope to launch the negotiation in the near future,' Goyal said.

 

With regard to support to small and medium industries, the minister said Rs 4.50 lakh crore government-guaranteed loans were given to 1.30 crore MSMEs during the Covid pandemic.

 

'Government is committed to increasing manufacturing and see India as manufacturing hub,' Goyal added.

 

India on track to achieve $400 billion exports, negotiating FTAs with countries: Goyal.

 

India is on track to achieve the $400-billion export target in the current fiscal and is negotiating trade agreements with countries like the UAE, the EU and Canada, Commerce and Industry Minister Piyush Goyal said on Wednesday. In a reply during Question Hour in the Lok Sabha, he said the prices of most of the commodities, including petroleum products, are prevailing high and because of this there is a stress on all sectors.

 

However, international prices of finished products have commensurately increased and hence the exports of these products have not faced detriments.

 

'For 10th month in a row, April 2021 to January 2022, India has posted over $30 billion of exports. It is a record, we have already crossed $334 billion of exports which is more than the highest ever that India has done in full 12 months period.. We are well on track to achieve $400 billion of exports,' Goyal said.

 

The minister said that the government is working to negotiate free trade agreements (FTA) or comprehensive economic partnership so that Indian exporters too get similar price advantage benefits.

 

'We have launched FTA negotiations with the UAE, Australia, the United Kingdom, the EU, Canada. We are also in dialogue with GCC countries -- the bloc of six countries in the Middle East-- who have shown keen interest in FTA with India and we hope to launch the negotiation in the near future,' Goyal said.

 

With regard to support to small and medium industries, the minister said Rs 4.50 lakh crore government-guaranteed loans were given to 1.30 crore MSMEs during the Covid pandemic.

 

'Government is committed to increasing manufacturing and see India as manufacturing hub,' Goyal added.

Bilateral trade between India and Bangladesh may have increased steadily in recent times but transactions involving the northern areas of Bangladesh and Northeast Indian states have not really taken off. Progress remains slow despite recent official efforts on both sides to increase overall business turnover, by generating more trade between Bangladesh with Tripura and Meghalaya.

Assam, the biggest state in the region has proved a mixed proposition. The traditional wariness in Assam, about Bangladeshis in general – an inevitable product of Assam’s own historical development – has been hard to shake off. By extension, the term ’Bangladeshis’ in Assam often means people who had crossed over from erstwhile East Pakistan and ‘Bengalis’ in general, in times of passion. Bangladeshis are also well aware of Assamiya reservations about them. Such a situation is hardly conducive towards the healthy growth of closer regional cultural/economic ties.

 

Currently there are signs that both sides may be more interested in overcoming the present stalemate. Observers have taken note of positive moves made by leaders both in Bangladesh and Assam specifically, to increase cross border trade and economic exchanges. There have been occasional visits to Assam by Bangladeshi Ministers and diplomats. Bangladeshis have been participating in fairs and gatherings in Assam where garments and handicraft are sold and the Assamese have reciprocated.

 

Bangladeshi Prime Minister Sheikh Hasina and Chief Minister of Assam, Himanta Biswa Sarma have both called for closer ties and cultural/economic exchanges, at different official fora . Earlier this year, during summer, Bangladesh sent a special gift of quality mangoes and sweets to India – more specifically to Delhi, Kolkata, Guwahati, among other destinations, to the Indian Prime Minister and Chief Ministers.

 

But perhaps a stronger indication of the changing times has been recent articles by Bangladeshi experts about the need for a closer contact between Assam and Bangladesh, carried in the Guwahati-based media. A few years ago, this would have been unthinkable. More on this later,

However, the unusually long and sustained aggressive campaign of major Assamiya organisations like the Asom Sahitya Sabha, the AASU and the AJYCP against what they describe as an “unceasing illegal infiltration of Bangladeshis” has left a toxic legacy .Harsh words and bitter sentiments about issues relating to Bangladesh expressed from the highest political/official levels as well as in the mainstream Assam-based media have not helped matters .

 

As stated earlier, Assam’s own history during British times and the migratory trends seen post 1947 have been the prime factors for the present situation. In short the comparatively smaller Assamiya population acutely feels the pressure of the larger Bengali population in the region, regarding it as an existential threat.

 

Rightly or wrongly, Bangladeshis(Bengalis who came over from East Pakistan and later, Bangladesh) settled in Assam are regarded as an already sizable minority that poses a strong challenge culturally/politically to the ruling Assamiya establishment in terms of its sheer weight in numbers. A general sense of unease gets reflected at many levels of Assam/Bangladesh interaction, especially at the official level. Until recently, Bangladeshi diplomats/officials hardly interacted with the mainstream media in Assam, let alone going in for any image building exercise. Some years ago, during a brief interface between a Bangladeshi diplomat and Assamiya mediapersons, the unbridgeable divergence of views on sensitive issues came to light.

 

The diplomat was asked whether Dhaka would take more stringent steps to stop the illegal movement of Bangladeshis, a major problem plaguing Assam over the decades. The presence of millions of mostly dirt-poor settlers added to the economic burdens of a relatively smaller Indian state.

Prompt came his reply: Since Bangladesh came into being only in 1971, Dhaka was not in a position to talk about what had happened decades ago. But his Government was prepared to deal with any major issues that might have developed after 1971, no matter how serious.

 

As for Bangladeshis entering Assam or India illegally, there is now in place a bilaterally accepted procedure. It is for Indian/Assam agencies to round up and present suspected illegal settlers to Dhaka authorities. They in turn would verify/check their alleged Bangladeshi origins before accepting or rejecting them as its citizens!

 

The element of mutual reserve extends to other levels as well including cultural initiatives. A couple of years ago, at an annual fair, Bangladeshi garment sellers put up a few stalls, with specimens of high quality Tangail sarees and other items on offer. But sales remained low. Disappointed, the stall owners said they would not participate in such fairs anymore!

Given this background, it has been revealing to see in Assam media special write-ups from Bangladesh arguing the case for closer ties with Assam and the major mutual benefits this would bring to the region as a whole.

 

Interestingly, the approach of one Bangladeshi writer was not defensive at all. Quite the reverse: Assam, he reasoned, should be grateful to Bangladesh. By throwing out former ULFA militants from its territory and handing over hardened insurgent leaders, Dhaka had already earned high praise from GOI for contributing to the better security of the entire NE region, and of Assam in particular. It had frozen bank accounts run by major Indian insurgent leaders/organisations and seized their assets, to help India and for the sake of lasting regional peace and harmony. Clearly Bangladesh had done Assam a major favour.

 

Bangladesh, he added, was already an economic powerhouse in the region. It had much to offer to the NE states. By way of connectivity, NE states including Assam could use the waterways and the new ports Mongla and Chalna to carry their exports to ASEAN countries and beyond.

By road too, now that transit rights were operative bilaterally, Assam-based entrepreneurs could access Myanmar/Thailand areas not to mention the Bay of Bengal. The NE region could overcome the economic limitations of being landlocked, following the example of Nepal. Both Bhutan and Nepal were seriously considering the use of Bangladeshi roads/waterways and its new ports, in addition to special facilities they already enjoy in the Kolkata/Haldia ports.

 

Bangladesh could learn from Assam in improving its fledgling tea production efforts, while NE entrepreneurs could learn more effective production/other techniques in exporting agri-processed items, developing fishing, rice cultivation etc.

 

As for pending issues/problems, official negotiations and agreements wherever possible, were the only way to go forward. The strong Bangladeshi middle class/rich would well be travelling to Nepal and Bhutan through Assam and the NE states. They could be interested in Assam-made garments, the rich variety of different layers of tribal culture and handicrafts of Meghalaya, Manipur or Nagaland. There could be major exchanges in expanding the bilateral food culture.

In view of considerable overlap between schemes, it has been decided to merge the ‘Scheme on Implementation of Agriculture Export Policy’ with other district level schemes being planned by the Department of Commerce. The institutional framework created under the District Export Hubs initiative, at State and District levels, is being utilized to achieve the objectives of Agriculture Export Policy.

 

This information was given by the Minister of State in the Ministry of Commerce and Industry, Smt. Anupriya Patel, in a written reply in the Lok Sabha today.

Reorientation of 18 schemes under 10 broad subjects and more freedom to States to implement their own plans in agriculture, besides nearly 74 per cent hike for fisheries and increased allocation for fertiliser subsidy amid call to shift towards natural farming show a clear blue print for the farm sector for next year. Even though there were no specific new announcements as expected by stakeholders, sufficient indications are there in the Budget document to what are the steps likely to be taken over the next one year.

 

After a long gap, the allocation under Rashtriya Krishi Vikas Yojana (RKVY) has seen nearly three-fold jump to Rs10,433 crore for 2022-23 from Rs3,712.44 crore (BE) in current fiscal and the hike is over five-times from the revised estimate. The scheme, started during UPA government, had found support from Madhya Pradesh Chief Minister Shivraj Singh Chouhan who even had pitched for all Central schemes to be like this as it allowed States to develop and implement their own plans.

 

'There is a major emphasis on procurement of paddy and wheat, but bulk allocation should shift to pulses and millets,' said former Union Agriculture Secretary SK Pattanayak. More allocation to RKVY will give flexibility to States to mould these funds the way they want, he said. However, one has to see what is the total allocation for the farm sector minus PM-Kisan, crop insurance and interest subsidy, he added.

 

Out of the total Rs1,24,000 crore allocated to the Department of Agriculture and Farmers Welfare, allocation to PM-Kisan, Pradhan Mantri Fasal Bima Yojana (PMFBY) and interest subsidy for crop loan has a combined share of 83 per cent at Rs1,03,000 crore. In the current fiscal (BE), the share of these three schemes was nearly 82 per cent of the allocation made for the department.

 

No separate programmes

 

The Budget has clubbed all major activities in the 50:50 fund sharing plan with States under a new Krishionnati Yojana divided under 10 areas like agri extension, integrated development of horticulture, and seed and planting material. There will be now no more separate programmes like National Project on Soil Health and Fertility, Rainfed Area Development and Climate Change, Paramparagat Krishi Vikas Yojana and National Project on Agro-Forestry.

 

Earlier, there was no allocation under extension and Rs1,000 crore to it separately will take care of many activities and a micro focus on this key activity which is crucial for raising farmers’ income whether it is technology adoption or reduction in input costs, said an agriculture ministry official. The details of fund utilisation will be worked out in consultation with States since extension is in their domain and they will also have to deposit the matching share, the official said.

 

As outlined in the Economic Survey on the need to focus more on non-farm businesses, animal husbandry, dairy and fisheries sectors to boost farmers’ income, Finance Minister Nirmala Sitharaman has increased allocation for the Department of Fisheries by 73.5 per cent to Rs2,118.47 crore and by 26.3 per cent to Rs3,918.84 crore for the Department of Animal Husbandry and Dairying.

 

Lower allocation

 

However, there is no clear indication on the chemical fertilisers even as the Budget mentioned about the need to shift towards chemical-free natural farming as the subsidy on urea has been kept at Rs67,186.78 crore, 7 per cent more than current year (BE), while it is more than doubled to Rs42,000 crore in case of phosphorous (P) and potash (K). But the allocation is lower compared with revised allocations for current year in all three nutrients.

 

'The focus on start-ups and AgriTech will be helpful for the development of a digital ecosystem and technology inclusion in the farm sector. However, most industry aspirations remain unmet,' said Ajay Kakra, Leader – Food and Agriculture, PwC India.

 

The silver lining is that it has put focus on technology and has concentrated on logistics from which agriculture sector will reap the benefit. Since the Budget was very cryptic and short we do not know the outlines of the actual proposals that will throw light in the coming days,' said Pattanayak.

Tunisia's state grains agency has issued an international tender to purchase an estimated 75,000 tonnes of durum wheat, 100,000 tonnes of soft wheat and 75,000 tonnes of animal feed barley, European traders said on Tuesday.

 

The tender closes on Wednesday, Feb. 2, they said.

 

The grains can be sourced from optional origins.

 

The durum is sought in three consignments of 25,000 tonnes for shipment between Feb. 25 and March 30 depending on origin supplied.

 

The soft wheat is sought in four 25,000 tonne consignments for shipment between March 20 and April 25, also depending on origin used.

 

The barley is sought in three 25,000 tonne consignments for shipment between March 5 and April 15 depending on origin.

 

Traders had been anticipating new purchase tenders to be issued by importers after a sharp fall in Paris Euronext wheat futures on Monday. 

 

Tunisia’s last reported durum, soft wheat and barley purchase was on Jan. 5. 

Meenesh Shah, Chairman, National Dairy Development Board had welcomed the reduction in alternate minimum tax for cooperative from 18.5 per cent to 15 and surcharge from 12 to 7 per cent%for cooperatives having income Rs R to 10 crore.

 

The decision will boost development initiatives of dairy cooperatives and ensure better remuneration to millions of farmers.

 

Meghana Narayan and Shauravi Malik, co-founders, Wholsum Foods Pvt Ltd (makers of millet-based children’s food brand Slurrp Farm) said that the Budget has put the grain in focus, especially by way of branding of millet products nationally and internationally.

 

With 2023 designated as the International Year of Millets, the awareness around the health benefits of millets and also their environment-friendly cultivation methods will only continue to grow. This will strengthen the entrepreneurial ecosystem in the space of these nutricereals in India.

 

A new wave of entrepreneurship is sweeping the nation and the move will allow numerous young Indians to bring their ideas to life and build brands for the new-age Indian consumer, they said.

 

'Wholsum Foods and Slurrp Farm are proud to be a part of both India’s startup and millet stories and we look forward to playing our part in this next chapter of India’s growth', they added.

India slashed its export tax on raw hides and skins of buffalo to 30% from 40% earlier, Finance Minister Nirmala Sitharaman said on Tuesday.

 

The South Asian country is the world's biggest exporter of buffalo meat and industry officials have been requesting New Delhi to abolish the export tax.

 

'Exports are unlikely to pick up even after the reduction as the 30% tax makes us uncompetitive amount. The government should remove all taxes on the exports,' said Fauzan Alavi, vice president at the All India Meat & Livestock Exporters Association.

 

There is good demand for Indian buffalo skins from Thailand, Indonesia, Malaysia and Vietnam, but the export duty makes India uncompetitive, Alavi said.

India’s economic growth in the current year is estimated to be 9.2 per cent, highest among all large economies. The overall, sharp rebound and recovery of the economy from the adverse effects of the pandemic is reflective of our country’s strong resilience. This was stated by Union Minister for Finance and Corporate Affairs Smt Nirmala Sitharaman while presenting the Union Budget in Parliament today.

 

The Finance Minister said, India is celebrating Azadi ka Amrit Mahotsav and it has  entered into Amrit Kaal, the 25-year-long leadup to India@100, the government aims to attain the vision of  Prime Minister outlined in his Independence Day address and they are:

 

* Complementing the macro-economic level growth focus with a micro-economic level all-inclusive welfare focus,   

 

* Promoting digital economy  & fintech, technology enabled development, energy transition, and climate action, and 

 

* Relying on virtuous cycle starting from private investment with public capital investment helping to crowd-in private investment.

 

Since 2014, the government’s focus has been on empowerment of citizens, especially the poor and the marginalized and measures have been taken to  provided housing, electricity, cooking gas, and access to water. The government also have programmes for ensuring financial inclusion and direct benefit transfers and a commitment to strengthen the abilities of poor to tap all opportunities.

 

The Finance Minister informed that the Productivity Linked Incentive in 14 sectors for achieving the vision of AtmaNirbhar Bharat has received excellent response, with potential to create 60 lakh new jobs, and an additional production of  Rs 30 lakh crore during next 5 years. Dwelling on the issue of  implementation of the new Public Sector Enterprise policy, She said, the strategic transfer of ownership of Air India has been completed, the strategic partner for NINL (Neelanchal Ispat Nigam Limited) has been selected, the public issue of the LIC is expected shortly and others too are in the process for 2022-23.

The country's exports rose by 23.69 per cent to USD 34.06 billion in January on healthy performance by engineering, petroleum and gems and jewellery segments even as trade deficit widened to USD 17.94 billion during the month, according to provisional data of the commerce ministry.

 

Imports in January grew by 23.74 per cent to USD 52.01 billion, the data, released on Tuesday, showed.

 

Trade deficit widened to USD 17.94 billion during the month as against USD 14.49 billion in the same month last year.

 

Cumulatively, exports during April-January 2021-22 rose by 46.53 per cent to USD 335.44 billion as against USD 228.9 billion in the same period last year. Imports during the period jumped by 62.68 per cent to USD 495.83 billion.

 

Trade deficit, difference between imports and exports, stood at USD 160.38 billion during the ten months period of this fiscal as compared to USD 75.87 billion in April-January 2020.

 

According to the data, gold imports in January dipped by 40.42 per cent to USD 2.4 billion. Crude oil imports rose by 21.3 per cent to USD 11.43 billion in January.

 

Engineering exports rose by 24.13 per cent to USD 9.2 billion, petroleum by 74.73 per cent to USD 3.73 billion and gems and jewellery by 13.83 per cent to USD 3.23 billion.

 

Pharmaceuticals exports, however, dipped by 1 per cent to USD 2.05 billion in January.

 

Federation of Indian Export Organisations (FIEO) Vice President Khalid Khan said that going by the current rate of growth, India will achieve USD 400 billion exports target for this fiscal.

 

FIEO President A Sakthivel said that the additional budget for the Interest Equalization Scheme for 2021-22 and provision of Rs 2,621.50 crore for 2022-23 have provided assurance on the continuance of the scheme and 'we are expecting a suitable announcement in this regard'.