Bangladesh tea exports plummet

Bangladesh’s tea exports plummeted to record lows last year but burgeoning local demand saved the day. Crop yields were higher but exporters fell mainly due to a reduced demand from Pakistan, which is a major purchaser of Bangladesh tea. Tea exports during January-December ’01 stood at 12.9m kg, against 18.1m kg in ’00. Export earnings fell to $11.61m, down from $16.29m in ’00.

(Courtesy- The Economic Times, July, 10)

Headlines

Coir exports hit all-time high

The export of coir and coir products from India touched an all-time high of Rs 321 crore during fiscal ‘01-02, according to provisional export figures given by Coir Board'S ‘Coir News’. Exports during ‘00-01 was of the order of Rs 314 crore, an increase of 2% in value. In terms of quality, export of coir and coir products during ‘01-02 totalled to 70,853 tonnes as against 67,493 tonnes during the previous fiscal, registering a 5% increase in terms of quantity.

(Courtesy- The Economic Times, July, 9)

Headlines

Rail-Port row hits rice exports

Rice exports are taking a beating with the ongoing strike of the clearing agents in Kandla on account of differences with the railway authorities, nullifying the price advantage the country enjoys in the international market. As a result exports of around two lakh tonnes have been directly affected and if one takes into account the halt in any further loading at godowns the impact will be much higher, market sources said.

(Courtesy- The Economic Times, July, 6)

Headlines

Agencies to charge less for onion export NOC

The government directed Nafed and other state trading entities permitted to canalize onion exports to slash down the service charge levied for issue of NOC to associate shippers. A notification issued by the commerce ministry holds that all fresh issue of NOCs to associate shippers would be levied a service charge of 2%.

(Courtesy- The Economic Times, July, 4)

Headlines

Spices import up

India witnessed a rise in import of spices, milk products, toys, umbrellas and locks during April compared to the corresponding month the previous year. In Spices the imports have jumped from Rs 24.9 crore to Rs 139 crore.

(Courtesy- The Economic Times, July, 3)

Headlines

AP plans Rs 107 cr horticulture export zone

To step up export of horticultural products from areas around Hyderabad, the government agri export zones (AEZ) on the outskirts of the city at a cost of Rs 107 crore. The zone will focus on boosting export of two major horticultural products produced in this area: mangoes and grapes grown in Ranga Reddy and Mahabubnagar districts and also parts of Medak. The government is set to sign a MoU with Apeda, in Hyderabad on Monday for promoting the AEZ in Hyderabad.

(Courtesy- The Economic Times, July, 2)

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Karnataka to set up AEZs for rose onions and floriculture

The Karnataka government signed two memoranda of understanding with the APEDA for setting up agri export zones for rose onion and floriculture. The state which already boasts of the country's major AEZ for gherkins (pickled cucumbers) is also planning to have three additional zones for acid lime, grapes and vanilla. For the floriculture AEZ, APEDA's contribution has been placed at Rs 6.9 crore out of the total cost of Rs 29.3 crore. Contribution of the state government and its agencies is placed at Rs 8.4 crore.

(Courtesy- The Economic Times, July, 2)

Headlines

Indian coffee exports down by 11%

India’s state-run Coffee Board permitted traders to export 140,804 tonnes of coffee from January to June, a fall of almost 11% from the same period a year ago, a Bangalore based Coffee Board official said. India’s coffee exports have fallen this year due to a global oversupply of coffee and the resultant low prices.

(Courtesy- The Economic Times, July, 1)

Headlines

Markfed to set up agri export zones in Punjab

Punjab is to set up an Agriculture Export Zone for potatoes. Punjab Markfed declared a nodal agency has initiated a MoU with APEDA for setting up the AEZ to facilitate potato exports from Punjab. Under the agriculture export policy, the state government will evolve a comprehensive package of services, which include pre-post harvest treatment, protection, processing, packaging, lab testing, storage and related research and development.

(Courtesy-The Economic Times, 28th June)

Headlines

Silk exports dip 7% in ‘01-02

Silk exports which registered a decline of close to 7% during ‘01-02 is facing stiff competition from China which has started to make inroads in India’s traditional markets. While decline in exports to Italy has been to the tune of 33% that to Germany has been 27% and US, which is India’s largest buyer of silk, has shown a decline of 22%. Silk exports during ‘01-02 declined to Rs 1309.4 crore from Rs 1,401.9 crore a year earlier.

(Courtesy-The Economic Times, 27th June)

Headlines

MP redraws strategy to boost Durum wheat exports

Madhya Pradesh is reworking its strategy to boost export of high-quality Durum wheat that finds a ready market abroad with makers of pasta and noodles. According to the state agricultural marketing federation, a target of 5,000 tonnes had been set for this season.

(Courtesy-The Economic Times, 27th June)

Headlines

Pepper price rise triggers imports

India, the largest producer of black pepper in the world, has become a net importer of pepper last month. As per the trade estimates, the country exported 1,962 tonne of black pepper in May. On the other hand, the imports stood at 2,554 tonne for the same month. Chairman, Spices Board said that the higher import of pepper in May is just a “temporary phenomenon”. He said that when the prices of blackpepper increased in the domestic market some of the exporters who had commitments have to rely on imports.

(Courtesy-The Economic Times, 27th June)

Headlines

Sugar exports to get freight subsidy

Sugar export freight subsidy has been worked out, under which government will provide reimbursement of the expenses for transporting sugar from mill to port. The reimbursement has three components of Rs 1.30 per tonne per km for transporting sugar from mill to the railway station, freight charges by the shortest rail route from the mill to port town and another Rs 1.30 per tonne for taking sugar from port town railway station to actual port.

(Courtesy-The Economic Times, 22 June)

Headlines

Ginger , chilly exports earn Sikkim Rs 58 cr.

Sikkim, designated as an agricultural export zone, has earned Rs 24.61 crore by exporting ginger and Rs 33.11 crore from flowers and big chilly. The export earnings would be utilised for setting up packaging centres, cold storage, nurseries and other related infrastructure for agri exports.

(Courtesy-The Economic Times, 22 June)

Headlines

India may edge out Vietnam as second largest rice exporter

India’s rice exports are likely to double to 3.6m tonnes this year, helping it displace Vietnam from the position of world’s second largest rice exporter. According to the Food and Agriculture Organization’s (FAO) Rice Market Report yet another anticipated bumper paddy harvest and the expected surge in imports by Indonesia and China will enable India to displace Vietnam as the number two rice exporting nation. India’s rice stocks on the first of this month have risen to 23.33m tonnes from 22.86m tonnes in the same period last year. According to the report, despite a projected in the paddy harvest, India is estimated to more than double its previous year’s exports to 3.6m tonnes.

Headlines

Punjab to export frozen okra, green gram to UK

There is a growing demand for ‘Produce of Punjab’, especially fruits and vegetables in Britain. While fresh Indian vegetables have already landed on the British soil, efforts are on to make UK Indians, especially those from the Punjab, develop a taste for frozen vegetables from Punjab as well. Two consignments of 20 tonnes each of okra and green gram have been shipped to Britain. Punjab Agri Export Corporation (Pagrexco) has already exported 20 tonnes each of frozen okra and green gram to the UK, orders on hand are for another consignment of 40 tonnes each of frozen vegetables. These are to be shipped in August-September next.

Headlines

Big export orders for Indian rice

There have been a spate of orders for Indian rice, including one lakh tonnes from East Africa. One private trader has bagged orders to export one lakh tonne 5% broken rice to east Africa at $143-144 a tonne to be delivered in July and August.

Headlines

India exports sugar to Bangladesh

An Indian trading firm has sold 45,000 tonnes of sugar to private companies in Bangladesh at about $230 a tonne, a senior industry official said. Member secretary of Indian Exim Corporation, which bagged the order last month, said Bangladesh could import about 200,000 tonnes of sugar in the current year to September. The trading firm has so far sold 150,000 tonnes of sugar in ’02.

Headlines

New incentives package for tea exports on cards

The Government of India plans to brew a new package of incentives to help the tea industry target new export markets. This was indicated by additional commerce secretary on the sidelines of a workshop organized by the Tea Board and United Planters Association of Southern India.

Headlines

Indian mangoes likely to get export clearance from China

India is eyeing the Chinese market to boost exports of fresh mango and mango products. Chairman of Apeda said that they are on the verge of getting clearance for export of mangoes to China. This year India is targeting a 25% increase in exports to 50,000 tones through special promotions in six major markets- the United Arab Emirates, Hong Kong, Kuwait, Malaysia, London and Germany.

Headlines

Bangladesh cancels import tender for 25,000t sugar

State-owned Bangladesh Sugar and Food Industries Corporation (BSFIC) has cancelled its tender for importing 25,000 tonnes of white sugar. They said the corporation was unlikely to call another tender for sugar imports in the near future.

Headlines

Edible oil imports likely to touch record high in May

Edible oil imports are up again as the lean season approaches. Imports of refined and crude edible oils touch a new monthly high of the season in May ’02 at 4.7 lakh tonnes compared with 3.7 lakh tonnes for the same period last year.

Headlines

Wheat product exporters face uphill task

While India has made it big in the world market for wheat and rice, its target for exporting two million tonnes of wheat products is nowhere near realization. Millers are unable to get big contracts, as the current ex-FCI price of Rs 4,750 per tonne is not competitive particularly when the price for wheat export is much lower at Rs 4,310 per tonne.

Headlines

Mango export may touch 50,000 tonnes this year

India is nibbling into the Pakistani share in global mango market and despite the fall in domestic output, the volume of export this year is likely to touch an all time high of 50,000 tonnes. Breakthrough in ‘refer’ technology for export by sea has worked wonders for fresh mango exports and India has been able to break the Pakistani stronghold on West Asian market. This when coupled with an aggressive export promotion campaigns will ensure a 25% increase in exports to 50,000 tonnes in ‘02-03. Exports by sea not only reduces perishability, mangoes can be exported in bulk in containers of 20 tonnes.

Headlines

Exports of spices decline in April

Exports of spices during April this year showed a decline of 6% in terms of quantity and 12% in rupee value when compared to the same period last year. In April this year, 18,910 tonnes of spices valued at Rs 112.5 crore were exported as against 20,200 tonnes valued at Rs 128.3 crore in April last year, sources in Spices Board said.

Headlines

Vanaspati imports

The government has appointed Central Warehousing Corporation as the “importers” of Nepalese vanaspati but by the procedure laid down by the latter, it has designated itself as a canaliser while permitting anybody and everybody to import the commodity. They said CWC’s laid down procedure has allowed imports for quantities as small as 10 tonnes thereby ensuring even small time importers can participate in it.

Headlines

Gujrat , APEDA to set up agriculture export zone

Moving closer to setting up its first Agri Export Zone (AEZ) for mango and fresh vegetables, the Gujrat government has signed a MoU with the APEDA. The AEZ will be set up on a cost of Rs 33.7 crore, of which around Rs 15.4 crore would be arranged through the existing schemes of the central and state governments. To be set up over the next five years, AEZ will lead to exports of around 5,000 metric tonnes each of mango and vegetables from the fifth year. AEZ will be set up in the central and south Gujrat, covering the districts of Ahmedabad, Kheda, Anand, Vodadara, Surat, Navsari and Valsad. These districts have been identified since they account for 35% of the state’s vegetable production and more than 50% of the mango crop. While in mango, Kesar and Alphonso are the main varieties, vegetables like okra, bitter gourd, chilli and drumsticks have a good export potential.

Headlines

Cotton pips almonds to occupy top slot in US imports to India

Cotton has just become USA’s top farm export to India. So good have been the pickings for US cotton this season that it has for the first time overtaken almonds as the hot American moneyspinner in India. US cotton raked in $110m from Indian in '01, up from around $60m the previous year. In the cotton marketing year (August-July) '01-02, Americans have contracts for 12-13 lakh bales out of the total 22 lakh bales being imported by India.

Headlines

Govt. spikes plan to sell grain to exporters at market rates

The government has shelved the proposed system of charging open market price for foodgrains from exporters and later reimbursing the differential with export price terming it as impractical. Last month the government had begun selling wheat and rice to exporters at open market price of different zones and reimburse the difference with the ex-granary export price, showing it as WTO compatible subsidy. The minister said even the current system of selling grains to exporters at prices a little over the rates for below-the-poverty-line (BPL) families is WTO compatible. The difference with market prices can be shown as subsidy, which is permissible under WTO regulations, and there is no need to initially receive a higher amount from traders only to reimburse the differential.

Headlines

Tea export strategy

Aiming at an annual export of 280m kg tea by ’06, the government has identified five key markets, including Pakistan, and is working towards appointing voluntary organizations of traders to step up exports to these markets. Based on the report prepared by Accenture, Chile, Syria, Pakistan, Saudi Arabia and the UAE have been identified as key markets for enhancing India’s presence in world tea trade and now voluntary organizations of traders will be appointed to improve exports to the targeted potential.

Headlines

Sugar Corp banks on price edge to push exports biz

The Indian Sugar Exim Corporation is banking heavily on a possible $20 per tonne advantage in exports to boost business. This, too, at a time when the domestic industry is suffering from acute over production. The Corporation is awaiting the government’s clearance for reimbursement of mill to port freight charges. These charges, which will work out to an approximate freight, cost advantage of $10 per tonne. Another $10 is expected in rail transport charges to key export destinations, for the Indian sugar industry at least, such as neighboring Dhaka.

Headlines

Govt. reverts to selling subsidized foodgrains to exporters

Government has decided to revert to the mechanism of sale of wheat and rice to the traders for export at subsidized rate and will study whether that can be shown as WTO-compatible. The new system of traders paying the open market price and the differential with the ex-granary export price being reimbursed later has been put in abeyance. Official sources said they weren’t sure when the lower rate system would stop but the concern was how best to make the system WTO-compatible. The government will study whether the current policy was in consonance with WTO regulations or whether any change was needed.

Headlines

Punjab exporters shift base to east coast ports

Wheat and rice exporters from the northern region, especially Punjab, have shifted the port of dispatch in view of congestion at Kandla port in Gujrat. The turnaround of rail wagons is also becoming an irritant as nearly 2-3 dozen rakes loaded with wheat and rice meant for exports, are reportedly held up at Kandla with the railways not accepting any indents for Kandla. As a result export consignments of foodgrains are being diverted to the east coast ports, including Vizag and Kakinada and Mumbai in the west, points out Food Corporation of India’s senior regional manager for Punjab.

Headlines

Tea exports up 6%

Tea exports between January and March this year increased 55.9% to 41.3m kg compared to 39m kg in the corresponding period of ’01, Indian Tea Association (ITA), the apex body of tea manufacturers, said. Despite the marginal 2.3m kg increase over corresponding quarter last year, the value of exports dipped Rs 211.3 crore too Rs 337.9 crore from Rs 359.2 crore last year, ITA said.

Headlines

Cotton imports double to Rs 2,000 cr as output dips

Reflecting shortfall in domestic availability, cotton imports have almost doubled to cross the Rs 2,000 crore mark during ‘01-02. Bulk of the imports has been sourced from the US and imports from this country alone accounted for Rs 626 crore. The spurt in import is account of non-availability of specific varieties and price, official sources said.

Headlines

Iraq to buy sugar at $225 a tonne

India has received yet another order for export of 13,000 tonne of sugar to Iraq at an attractive price of $ 255 per tonne. The order has been given under the oil-for-food programme for Iraq of the United Nations and will give a push to exports at a time when global market is dull.

Headlines

UP ready to export mangoes

Uttar Pradesh is gearing up for mango exports through several incentives, saying there is enough high quality surplus in the state to be sold abroad. With about 4.2m tonne output, a 10% fall in production will not make any major difference in exports. In any case we have a five lakh tonne surplus of export quality mangoes.

Headlines

Centre to set up taskforce to promote agri exports

The Centre would set up shortly a task force to devise specific strategies for increasing the exports of agricultural commodities. Mr. Vikhe Patil said the task-force would be entrusted with the task of identifying specific agri products for exports, preparing products profile of Indian agri-export products and recommending removal of procedural hurdles. He said that it was also proposed to set up a mission exclusively for agri-exports in due course. Pointing out that country’s agri-exports account for a marginal 1.1% share in world agri-products exports valued at $558bn in the year ’00, he said that in order to boost country’s agri-products, the success achieved by other countries needed to be studied closely.

Headlines

Mango exports post 35% growth

Exports of Mango crop from Andhra Pradesh are set to go up at least 30 to 35% over the last year. The state is the second largest producer of mangoes in the country, the largest being Uttar Pradesh, producing nearly 32 lakh tonnes each year. Nearly 2,200 metric tonnes of mangoes are likely to be exported this year, as against 1,600 metric tones exported last year said official of APEDA. The value of exports will be in the range of Rs 7 to Rs 8 crore. Though the yield this season has been less than 30% of the normal yield, owing to the crop being biennial in nature, the quality of produce is good and therefore is finding ready markets abroad.

Headlines

Wheat , sugar exports post 10% growth in Apr-Jan

Country’s commodity exports have shown a marginal fall of 0.13% at $36bn during the period April-January ‘01-02 over the last fiscal even as imports increased by 1.3% to $42.7 bn from $42.1bn a year earlier. There has been an over 10% growth in exports of wheat, sugar electronic goods of wheat, sugar, electronic goods and petroleum products but they have a low weightage in the overall basket compared to the sectors which have registered a decline.

Headlines

Exporters to buy grain at FCI’s open market price

India has finally shifted to a WTO-compatible grain export policy. The government has decided that all exporters will henceforth have to buy grain at FCI’s open market prices and claim re-imbursement for post-delivery expenses. So while exporters will continue to get a subsidy, the government will no longer sell at a special export price. Sugar exporters will also get subsidy through re-imbursement of freight costs.

Headlines

Govt. hikes tariff value of imported palm oils

The government has increased the price at which import duty will be imposed on all grades of palm oils including crude palm oil (CPO) whose price has been hiked to $344 a tonne. The tariff value for RBD palmolein has been increased to $375 to $349 per tonne cost insurance and freight (C&F). In case of CPO it has been hiked to $344 from $314 a tonne C&F. The increase has been in the offing since some time owing to the rise in international prices of palm oils.

Headlines

Grapes exports post 100% rise

Grapes exporters in Andhra Pradesh have exported over 100% this season, which ended first week of this month, when compared to the corresponding period last year. The popular Thomson Seedless grapes accounted for more than 80% of the exports, followed by other varieties like Sharath Seedless and the Australian ‘Flame Seedless’. More than 50% of the containers headed for the UK, while nearly 30% went to other European countries and the remaining to the Far-East Asia and the Gulf countries.

Headlines

Freight subsidy on sugar

Uttar Pradesh sugar will finally get to mix with foreign food. The government is planning to notify by the end of this month the inland freight subsidy scheme for sugar under which exporters in the hinterland will be partly re-imbursed for transporting it to port. But while the average $10 a tonne subsidy will make India more competitive in Sri Lanka and Indonesia, it is unlikely to widen the search for markets further afield in Africa and Red Sea region. So the governments target to export at least 1.5m tonnes this year may be only partially achieved.

Headlines

Govt. rules out curbs on Soya oil imports

The Union food and consumer affairs ministry ruled out any restrictions on soybean oil imports saying it is neither practical nor in the interest of the overall trade of edible oils in the country. The food minister’s rejoinder comes in wake of the agriculture ministry sending a proposal to the law ministry for curbing GM Soya oil imports. There have been proposals to distinguish between various kinds of Soya oil and accordingly fix the customs duty on them, but these ideas do not carry weight. Once the oil has been extracted from the seeds it is not possible to identify the genetically modified product and therefore any restriction will be impractical.

Headlines

Rice exports set to touch 4m tonnes

Continuing to be at the centre stage of the global rice trade, India has bagged yet another order for exporting 13,000 tonnes rice to Nigeria. Trends indicate that if the current advantages continue, India will be able to export 4-4.5m tonnes this financial year. Demand is so high that the supply line is getting choked due to logistical constraints.

Headlines

Vegetable oil imports post 27% decline in Nov-April

India’s dependence on imported edible oils is gradually going down, due to increased domestic supply following good kharif and rabi oilseeds production as well as appropriate custom duty structure. Total imports of vegetable oils for the first half of the season ended on April 30 have declined to 1.7m tonnes, down 27% from 2.3m tonnes recorded during the corresponding period of the last year. At this rate, total imports during the current season are unlikely to surpass 3.5m tonnes as against 4.8m tonnes last year and 4.5m tonnes in ‘99-00. Imports even in ‘98-99 were about 4.4m tonnes.

Headlines

Export price for wheat hiked to Rs. 4350/tonne

The government hiked the ex-granary price of wheat for exports to Rs.4350 per tonne based on the international market trends. Till June 30, the previous price would continue to be applicable.

Headlines

Coffee exports down 29% in financial year 02

Coffee exports fell to 202,047 tonnes in the financial year ended March ’02, down from the previous year’s shipments of 246,908 tonnes. The earnings, hit by 30-year-lows in global prices, plunged by nearly 29% in ’02.

Headlines

Oilmeal exports up 54% y-o-y in April

Oilmeal exports jumped 54% in April from a year earlier, mainly due to a sharp rise in shipments of rapeseed meal, Solvent Extractors Association of India said. Oilmeal exports totaled 201,450 tonnes in April compared with 130,877 tonnes in the same month last year.

Headlines

Govt. chalks out strategy to boost cotton yarn export

Concerned over the 8% decline in export of cotton yarn during ‘01-02 compared to the previous year, the government unfolded in the Rajya Sabha a number of steps to boost its export.

Headlines

Edible oil imports likely to go up

India’s domestic edible oil prices were stable over the past few days on steady supplies and imports are likely grow in the months ahead following a seasonal fall in local stocks, traders said. B V Mehta of the Solvent Extractor’s Association of India said edible oil imports in April this year were expected to be around 325,000 tonnes, down from 400,000 tonnes in the same month last year. India, with a population of more than a billion, imports nearly half of its oil requirements, buying palm oils from Malaysia and Indonesia and soy oil from Argentina, Brazil and the United States. Traders said imports could rise to 450,000 tonnes in May and cross 500,000 tonnes in June, July and August mainly because local supplies will dry up. But traders said the total imports in 2001/02 (November-October) will be lower than the previous year because of a better oilseeds crop, higher global prices and weakening of the rupee against the dollar.

Headlines

Agri exports fail to match market’s expectations

Country’s export of principal commodities has recorded a negative growth of 0.8 % during the period April-December ’01, despite an over 4,800% increase in exports of wheat. Principal commodity exports during the first nine months of the fiscal ‘01-02 was valued at $31.1bn as against $31.4bn in the corresponding period a year earlier, as per latest provisional data compiled by the Directorate General of Commercial Intelligence and Statistics. Imports of these commodities however, increased marginally by nearly 3% at $38.1bn compared to $37.1bn during April-December ’00. The decline in exports came despite an over 10% growth in exports of sugar, molasses, processed foods, electronic hardware and petroleum products. Exports of wheat was valued at $178.7m compared to a mere $3.6m in April-December ’00, a growth of 4,817% while export of sugar was valued at $300m against $65.8m in ’00.

Headlines

Government targets 15m tonnes grain exports

The government plans to export 15m tonnes of grains in the current year to cut its bulging stocks, said Union food minister. The government has been tapping the export market to cut its massive grain stocks, which are estimated to touch 75m tonnes by the end of April.

Headlines

Manila buys 145,000/t Indian rice

State-owned Philippine International Trading Corp said it agreed to buy an additional 145,000 tonnes of rice from India. The Philippine firm said that of the total, it awarded a contract to India to supply 45,000 tonnes of 25% broken rice at a cash price of $168.98 per tonne, cost and freight freeout for delivery in June.

Headlines

One lakh tonnes of onion to be exported

The Government has given the green signal for the release of one lakh metric tonnes of onion for export during 2002-03 effective from April 12, out of the quota of seven lakh tonnes. The quantities to be exported through various Central and State canalising agencies have also been spelt out in the order issued by the Government. While other nodal agencies in different States have been given lower target, the National Agriculture Cooperative Marketing Federation of India and the Maharashtra State Agricultural Marketing Board have been authorised to canalise the export of 35,000 tonnes each.

Headlines

Manila to buy 1 lakh tonne rice from India

The Philippine government decided to buy a total of 245,000 tonnes of rice from India, Pakistan, Vietnam and Thailand. The government said it accepted the offer of India to supply 100,000 tonnes of 15% broken rice at a cash price of $173.70 per tonne cost and freight freeout.

Headlines

India eyes new markets to reduce huge grain stockpile

India is looking for new markets like Iran, Egypt, Philippines, South Korea, Indonesia and China for its foodgrain to reduce the growing stockpile of 52.9m tonnes in government silos. With quantitative restrictions on grain exports lifted, overseas trade is expected to jump to 15m tonnes- 10m tonnes wheat and five million tonnes rice- and earn foreign exchange worth Rs 12,000 crore. Total grain exports during ‘01-02 are estimated in the region of 7.3m tonnes, including five million tonnes of wheat to 16 countries, placing India seventh among wheat exporting nations, according to the International Grain Council. This year government hopes to achieve a higher target as the money exporters have deposited with the FCI for acquiring wheat is much more.

Headlines

Rice exports likely to touch 4m this year

Rice exports are expected to increase to around four million tonnes in ’02 helped by lower prices and large orders. The country shipped around 1.7m tonnes in ’01 after it reduced its export price in a bid to trim its bulging stocks of 25m tonnes. Indian rice, around $15 to $20 cheaper than leading exporters such as Thailand and Vietnam, is getting good trade enquires from the Middle East, Asia and Africa. India is currently selling around 200,000 to 250,000 tonnes every month. Traders said the Philippines, Indonesia and Iraq were among the countries that had made large inquiries and were likely to buy large amounts. Dealers said they were hopeful of winning a large portion of the rice contract floated by the Philippines, one of Asia’s largest rice importers.

Headlines

High-quality subsidised FCI rice being exported at reduced price

Instead of trying to get the highest price possible, state trading companies PEC and STC and several large trading houses, are exporting high-quality but heavily subsidised FCI rice at prices which are $13-15 per tonne lower than the average rates being offered by the wold market for ordinary rice from India. Most of such unusually low-priced contracts have been signed with just three foreign buyers-ADM Rice of USA, Noble Grain of Singapore, and Ascot Commodities of Netherlands.

Headlines

It’s sweet success for grape exporters

Due to increased demand for AP grapes in the United Kingdom and other countries of European Union (EU), about 40 containers of grapes, mostly Thomson and Sharath seedless varieties, have been exported so far. Another 20 to 25 containers 15 metric tonnes will be exported before the end of season in the state. Conversely, only 33 containers were exported during last season. It’s not just the quantity but even in terms of earnings, the ongoing season is proving to be very sweet for growers and exporters.

Headlines

Foodgrains export sets record

The foodgrains export has touched a record high. During the 2001-02 financial year, 75.62 lakh tonnes of food-grains valued at $742.08 has been exported. This includes the export of 55.75 lakh tonnes of wheat and 19.87 lakh tonnes. According to the Union Food Minister, the earlier highest export was of 28 lakh tonnes in 1996-97. There is no ceiling on the export of wheat and rice now. India has export to several countries including Egypt, Taiwan, Malaysia, the Philippines, Singapore, Korea. Indonesia, Bangladesh, Sri Lanka, Sudan, the UAE, Yemen, Vietnam. Kuwait, Oman, Qatar, and Russia. Talks are on with Iraq to reopen talks for the export of wheat from India. Besides, 10 lakh tonnes of wheat remain committed to Afghanistan through the World Food Programme.

Headlines

Nigerseed exports to US down 50%

India is fast losing the US market for nigerseed, which is largely used as bird feed. Indian exports to the US have sharply declined to 9,475 tonnes last year, recording a 50% fall from 19,775 tonnes. Nigerseed is a minor oilseed grown in MP, Orissa, Andhra Pradesh, Assam, Karnataka and Maharashtra. The annual production is estimated at 1.25 lakh tonnes and it is exported to USA, Europe and smaller quantity to Far East destinations as bird feed. Total world market is estimated arounf 55,000 tonnes, with USA being the largest buyer, accounting for about 30,000 tonnes. Although the government has removed most controls on exports of nigerseed continues to be canalised through Trifed.

Headlines

Oilmeal exports in ‘01-02 up 29% to over 4 lakh tonnes

Exports of oilmeals during the ‘01-02 financial year have jumped by 29% in quantity terms, according to the latest date complied by the Solvent extractors’ Association of India (SEA). Exports last month touched 407,350 tonnes compared with 311,051 tonnes in March last year. Total oilmeal exports from the country during ‘01-02 is estimated at 3m tonnes compared to 2,33m tonnes in the previous year. Exports of soybean meal were up 14% at 2.49m tonnes from 2.18m tonnes in ‘00-01. Exports of rapeseed meal and groundnut meal exports, which had come down from the high of 1.2m tonnes in ‘97-98 to only 63,000 tonnes in ‘00-01, have shown marked improvement at 313,000 tonnes last year. Similarly, exports of groundnut meal have gone up to 101,000 tonnes from just 19,000 in the previous year. Castor meal is exported as natural fertiliser for organic farming. Its export has increased 34% to 98,000 tonnes from 73,000 tonnes in ‘00-01.

Headlines

Focus on agriculture in Exim policy

The new Export-Import policy 2002-07 has a special focus on agri-exports with the Commerce and Industry Minister, Murasoli Maran, saying this will help in providing remunerative prices for the country’s farm output. He prefaced the plan for stepping up agri-exports by quoting economists, who say that every 1 % switch in the terms of trade in favour of agriculture will result in diverting about Rs 8,500 Crores annually in favour of agriculture from the non-agriculture sector. “This additional rural purchasing power will create a phenomenal effective demand”.

The measures in the Exim policy to free agri-exports from all hindrances include removing export restrictions like registration and packaging requirements on butter, wheat and wheat products, coarse grains, groundnut oil and cashew exports to Russia under rupee debt repayment scheme. In addition, Mr. Maran said the newly created 20 Agri-Export Zones would be assisted in consultation with State Governments for development of necessary infrastructure, flow of credit and other facilities for promoting agri-exports. Transport assistance is proposed to be made available for export of fresh and processed fruits, vegetables, floriculture, poultry, dairy products and products of wheat and rice. This is expected to lead to diversification of agriculture activity.

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Import duty on natural rubber to stay

The government said it would continue to impose the 25% import duty on natural rubber to protect the interests of rubber farmers of Kerala. Justifying the imposition of the import duty by drawing a parallel the United States, Mr Maran said, India also has the right to safeguard the interest of its farmers. Stating that 90% of the export consignments had been freed from the requirement of physical verification, he said all quantitative restrictions on exports had also been removed to facilitate exports.

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Indian tea exports fall to 10.8m kg

Indian’s tea exports fell over 13% in ’01 compared to the previous year and has continued the downtrend in January ’02 with a 23% fall over the same month last year, the state-run Tea Board said. Tea exports from India, the world’s largest tea producer, have suffered due to fierce competition from Indonesia, Bangladesh and Sri Lanka and lower demand from traditional buyers such as Russia and Britain.

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Agri-exports: Not so peppy

Seafood, spices and cashew exports have declined in the first ten months. Serious effort and planning are needed to put things back on track. Exports of major agri-commodities from the south are likely to suffer a setback this year, if the performance for the first ten months is any indication. Exports of products like seafood, spices and cashew is likely to settle at much lower levels than what was achieved last year. Seafood export suffered a major setback and declined 8.4% at Rs 4955.6 crore in the first tem months of the current year from Rs 5411.56 crore achieved during the same period of last year. Decline in prices of cashewnuts was the main reason for the fall in cashew export. Import of raw cashewnuts also registered a steep fall in the first ten months to Rs 609.4 crore from Rs 906.5 crore last year. In quality terms the fall was from 230104 tonnes to 224911 tonnes. One reason for exports of seafood and cashewnuts was the US terror attack in September ’01. As far as spice exports from the country is concerned the export of pepper, which accounted for 13% of the total was pushed down to the third place. The sharpest decline was felt in the case of pepper which fell from Rs 304.4 crore last year to Rs 172.2 crore. Export of spices like cardamom, turmeric, coriander, cumin, celery, fennel, fenugreek, garlic and mint oil have shown a decline in both quantity and value terms. Export of cardamom(large) and other spices have shown an increase only in terms of quality. Sources explained that serious effort is needed to push up export earnings in the new fiscal.

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After EU, Bangladesh curbs entry of Indian cotton yarn

It is now Bangladesh, the largest buyer of Indian cotton yarn that is curbing imports, after the EU imposed curbs on Indian cotton bedlinen. The Bangladesh government has recently imposed a ban on import of cotton yarn through the land route on the ground that sales of cotton yarn produced by local spinning mills have been affecting due to smuggling of cotton yarn across the Indian duty of 10% on import of all types of cotton yarn to perfect the domestic industry. Indian textile products have been targeted in recent months for harsh measures by some of its major trading partners undermining the basic tenets of the World Trade Organization (WTO). The restrictive unfair practices adopted by the EU and Bangladesh are seriously affecting exports of textile products from India.

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Government allows 2mt onion for export up to June

The government approved the release of two lakh metric tonnes of onion for export up to June ’02. The decision was taken on the basis of recommendations made by the inter-ministerial review committee.

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Cashew export falls 10%

As per estimates done by the Cashew Export Promotion Council, the cashew exports from country has registered 9.9% dip in the April to January period of the current financial year. The exports stood at Rs 1422.7 crore as against Rs 11563.3 crore during the same period of the previous year. The decline in the value of exports is despite the fact that the quantity of exports increased by 15% to touch 7710111m tonnes. The exports stood at 67036m tonnes last year. As per the estimates the unit value declines to Rs 184.5 a kg this year from Rs 233.2 a kg last year. Sources said that the main reason for the decline in export turnover is the fall in the prices of cashew nuts. The prices fell by 29% in the last couple of years.

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JK get agriculture export zone status for apple and walnut

The Jammu and kashmir government on Monday signed a memorandum of understanding with the centre for declaring the state as an agriculture export zone for apples and walnuts. Mr. Abdullah said other agriculture products like saffron, maize and basmati would also be brought under the AEZ rule.

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India undercuts neighbours in rice market

Asian rice prices are likely to slide in the coming week as Thailand and Vietnam, the world’s top rice exporters, find their bargaining power undermined by supply from India. India is selling rice at very cheap prices, relatively cheaper than rice from Thailand and Vietnam, said one trader. Indian 25% broken grade was quoted steady at $130 per tonne free-on-board(FOB), while Vietnam’s 25% broken grade was offered unchanged at $157 per tonne FOB. India, a major rice exporter, had a stockpile of 25.6m tonnes of rice as of January 1, against a buffer requirement of 8.4m tonnes. In the period from January 1 to March 12, Thailand exported 1.4m tonnes of rice against 1.1m tonnes in the same period last year, figures from the Thai commerce ministry showed.

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Government set up panel for grain exports

Government announced the setting up of an empowered six-member standing committee on the subject exports of grains and resolving issues relating to it. The standing committee on export of foodgrains, headed by the food secretary, would take fast decisions and interact with the exporters and their representatives bodies. The committee will met on the 10th of every month to discuss matters related to grain exports and additional meetings will be held as and when required.

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Spice oil exports up 34%

Spice oils and oleoresins are emerging as the single largest contributor to the total spice export earnings from the country in the current year pushing down black pepper to the third place. In the first 10 months of the current financial year, the spice oils and oleoresins including mint oil contributed 34% of the total exports. The second largest foreign exchange earner was chilli contributing nearly 17 % of the total earnings while pepper accounted for 13% of the export turnover. Earlier pepper used to contribute nearly 40 % of the total spice export turnover.

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Rice exporters from Pakistan

Rice exporters in Pakistan are in a classic catch-22 situation. After securing the right to bid in the Philippines’ next rice import tender for the first time in six years, they find rice prices at home are too high and the staple in short supply. The situation is a blow for Pakistani exporters, who are struggling to make inroads into the world rice trade, particularly in the Philippines, one of the largest rice importers in Asia. The Philippines has not bought rice from Pakistan for about six years due to quality concerns.

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Nagpur oranges now head for Dubai

The first consignment of 9.5 metric tonnes of Nagpur oranges left Mumbai for Dubai on March 2. Branded as Nagpur Mandarin, this is a trial consignment sent by the Maharashtra State Agriculture Marketing Board. The oranges have been selected from 10 farms in Warud, district Amravati, Maharashtra, and are of 65 mm dimension. Oranges harvested in the summer season, from February to April, are considered better in taste than those which come during the October-December season, officials of the marketing board said.

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Quantitativerestrictions on export of wheat and its products lifted

The government lifted quantitative restrictions(QRs) on export of several food items, including wheat, wheat products and coarse grains, to boost exports of agricultural commodities. According to a notification issued by the Directorate General of Foreign Trade(DGFT), the packaging restrictions on pulses for export have also been done away with. QRs on export of flour of barley, maize, bajra, ragi and jawar were also removed. The notification said the condition of registration of contract with Apeda for export of non-basmati rice has been done away with in order to facilitate the commodity’s trade in the international market. They has decided to continue QR on export of onion but has raised the quota to seven lakh tonnes per annum - two lakh tonnes for kharif and five lakh tonnes for rabi season.

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Cottonimports to touch 20 lakh bales

Textile industry is expected to import around 20 lakh bales of cotton this season despite higher indigenous production estimated at 154.5 lakh bales by the Cotton Advisory Board. During ‘00-01 season ended September ’01 imports were estimated at 22.1 lakh bales and domestic production at 140 lakh bales. This is as against the production of 153.5 lakh bales and imports of 17 lakh bales estimated by the All India Cotton Trade Associations’ conference. The board has estimated a consumption of 150 lakh bales by the mills this season against trade estimate of 145 lakh bales. It has estimated the consumption by small spinners at 12 lakh bales as against trade estimate of nine lakh bales and the non-mill requirement at 12 lakh bales against 11 lakh bales assumed by the trade.

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Government exporters regrets delay in transport subsidy

India and Nepal have finally agreed that only 1,00,000 tonnes vanaspati be imported at zero duty. Anything more will have to pay the peak customs tariff of 30%. The decision, under the new Indo-Nepal Treaty coming into effect from March 6, is expected to put an end to the flood of cheap Nepali vanaspati, which has bottomed out the Indian market and given local brands a sound drubbing over the last two years. Under the existing Indo-Nepal treaty, there is no limit on the quantity of duty-free vanaspati being imported into India, leading to more than two lakh tonnes coming in every year. There is an average price difference of Rs 80/tin between Indian and Nepali.

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GMO safety certification planned for imported food

The government is planning to introduce a GMO safety certification scheme for all food products being imported into the country to ensure correct labeling and protection of consumer health. Armed with this law, the government will thus be able to easily stem the inflow of any food product worrying its War Room, without reneging on India’s WTO customs tariff commitments. The government is also seeking to amend the Prevention of Food Adulteration Act to include GM certification in domestic food quality standards, but this could take another six-eight months. Labs will be set up across the country to enable port health officials, under the ministry of health, to conduct checks for GM content in imported food. China has already introduced strict GMO certification of food imports.

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Coffee exporters regrets delay in transport subsidy

The 50 paise a kg transport subsidy being offered on coffee export shipments for the last three months of this financial year, end up not really fulfilling the purpose with which it was started – namely alleviating the plight of the country’s coffee cultivators, of whom over 98 % are small growers and bear the burnt of the steep fall in world prices over the last 12 months.

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Palm oil products share has reached a new high of 87% even as the overall edible oils imports has declined by 28% in the first quarter of the current oil year beginning Nov’01. Imports of edible oils in Jan ’02 came down to 2.7 lakh tonnes, recording a 50% declined when compared with 5.4 lakh tonnes for the same month last year. With this the total imports of vegetable oils in the first quarter of current year was 8.8 lakh tonnes, a 28% lower against 12.3 lakh tonnes for the same period last year.

MMTC would purchase sugar for exports

According to a release MMTC issued a domestic tender for purchasing white sugar from mills for exports but no quantities have been mentioned in the tender which closes on September 8. A senior MMTC official said the company would purchase sugar for exports. The Indian Sugar and General Export and Import Corporation (ISGIC) had also floated a tender to buy sugar from domestic mills for export. The seller has been asked to mention the price and quantity on offer of white refined and white crystal sugar month-wise in September, October and November.  

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Revision of export terms and conditions: Coffee Board

Coffee Board has decided to review the terms and conditions for export permits in the wake of the massive and outright fraud committed by a group of exporters as reported. According to a circular issued to exporters by the board secretary Nitin Gokarn, there will be random checks on export coffees at the ports/curing works. The board will have the right to inspect the curing works if there is reason to believe that the facilities are inadequate, resulting in poor processing of exportable coffee. The name of the curing works from which export coffee is sourced will have to be mentioned in the permit application in order to ascertain whether the Coffee Board licenses the works.

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India’s soyameal export may drop down

Though global soyabean production in ‘00-01 is forecasted to touch an unprecedented 165m tonnes, atleast 10m tonnes more than the 155m tonnes of ‘99-00. India's soyameal exports expect to slow sown in the next quarter. In ‘99-00, India exported about 2.5m tonnes of soyameal.

Industry sources reported that the bumper crop from US will put tremendous pressure on the prices of soyabean and its derivative world over. In addition the new marketing season beginning October ’00 will have an opening stock of 20 m tonnes of soyabean. International developments are sure to have their repercussion on the Indian soya sector.

Industry sources reported that Indian soyameal exports may remain stable as far as the quantity is concerned but may witness a drop in its unit value realization. Currently in the overseas markets of Indian Soyameal is quoted at $220 per tonne FOB.

Exporters opine that liberal policy for edible oils imports is unlikely to be tampered atleast until October ’00, because of demand for cooking medium during the ensuring festival season. This would limit the margins on oil sales by soybean processors. In June shipments are estimated to be lower, and the trend is likely to continue till October until the prospects of a new crop will be known, as reported.

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India’s marine exports goes up

India’s export of seafood products has increased upto 28.2% in value terms in the first 3 months of the current fiscal. The exports stood at Rs.1, 304.7 crore in the first quarter as compared to Rs.1, 017.9 crore during the same period last year. In quantity terms, the exports stood at 66917 tonnes in the first three months of the current fiscal, an increase of 5.2% over the previous year’s level of 63,593 tonnes.

In the first quarter of ‘99-00, the exports stood at $238.76m. Among the different commodity groups, shrimp exports stood at 26,622 tonnes in the first three months. Compared to this the exports stood at 23,632 tonnes last year. The value of exports stood at Rs.1, 000.42 crore as against Rs.757.02 crore in the previous year.

Export of fish was 17,377 tonnes in the first three months as against 17,953 tonnes during the same period of the previous year. The export of cuttle fish was 3,639 tonnes down from the level of 4,049 tonnes last year. However, the value of exports increased marginally to Rs.33.8 crore from Rs.32.07 crore in the previous year. Export of squid touched 11,022 tonnes as against 11910 tonnes in the previous year.

The value of exports increased to Rs.9, 2.21 crore from Rs.89.82 crore in the previous year. Export of dried items fell marginally to 1,048 tonnes from 1,065 tonnes in the previous year. However, the value of exports increased sharply to Rs.13.81 crore as against Rs. 7.59 crore. Products like shrimp powder, cattle-fish ink, whole frozen crab, etc found a place in the export during the period. 

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Share of Indian agriculture in export during 1999-2000

Much of the fluctuation in India’s export growth in the ‘90’s has been due to its increasing dependence on agricultural products. The share of agricultural products in aggregate exports had increased steadily from about 17% at the beginning of the decade to over 20.5% in 1996-97. Alternatively, the country’s export performance began to falter after 1996-97 when the growth trend from agricultural and allied products went down. Their share in aggregate exports fell by nearly two percentage points in 1997-98 alone. The larger dependence on agriculture means greater fluctuation of export performance, as many of the items are in short supply at home. The cyclical nature of their production too affects the country’s export performance.

Agricultural production declined. Export earnings from agriculture and allied products declined by 8.8% form $6,033 million in 1988-99 to $5,504.5 million last year. Exports of both basmati and non-basmati rice, coffee, oil meals and tea fell during the year. Export of non-basmati rice declined by 69.8% and its share in total exports, as a result, fell from 3.14 % in 1998-99 to only 0.84% last year. Incidentally, export earnings from non-basmati rice had increased by a whopping 130% in 1998-99.

Even the export of traditional items like tea has witnessed a sharp fall. Export earnings from tea declined by over 24% last year against an increase of last year against an increase of 6.5% in the previous year. Export earnings from both rice and tea may increase once again in the current year, as their performance is highly cyclical.

Share of Agricultural allied products in India’s total exports in 1999-2000

 
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Non-basmati rice exports expected to decrease

This year, there is delay in sowing of most kharif crops. Sowing of paddy has also been delayed except in states such as Andhra Pradesh and Maharashtra. Rains are delayed in the North, which is a major producer of rice. Exports of non-basmati this year are expected to decline further, while that of basmati is likely to be maintained. Exports of non-basmati have declined from 4.3m tonnes in ‘98-99 to about 1m tonnes in the last financial year and exports of basmati rice were down from 6 lakh tonnes in ‘98-99 to approximately 5.2 lakh tonnes in ‘99-00.

"In the current year the country may witness a further downtrend in exports of non-basmati rice. The exports of basmati may touch in the region of 5-6 lakh tonnes. Decline in exports is anticipated mainly due to high Minimum support Price (MSP) by the govt. of Rs. 475 per quintal against Rs. 440 per quintal. Higher domestic prices have forced the exporters to demand higher value in the export market. Also, India’s competitors are merrily reducing their prices. Our exporters cannot afford to do that. Decline in Indian exports is also due to the decline in world demand last year which was around 22 m tonnes against 27 m tonnes recorded in ’98," Anil Adlakha, executive director, All India Rice Exports Association, said.

Non-basmati exports may record even lower this year as most non-basmati rice consuming countries such as Indonesia, Bangladesh, Pakistan and Sri Lanka have had a good crop. Rashmi Bhimjyani, managing director, RT Exports, opines that in the current year, the country may witness a decrease of 25-40% in basmati production. Globally, there is a large carry over stocks of basmati sella rice in Saudia Arabia.

 
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Panel to fix minimum export price for brown basmati.

The newly-launched price advisory committee for basmati is likely to operate as thinly-disguised cartel under government aegis as Apeda(Agricultural and Processed Food Products Export Development Authority) asks major six exporters to EU to help determine minimum export price. Hindustan Lever, United Rice-land, Bush Foods, Amira Foods, Picric and LT Overseas are now part of a permanent committee set up by Apeda to fix the minimum price, which will be advised to all companies exporting brown basmati. According to Apeda’s circular, any company not complying with the price advisory panel will be refused registration, at the sole discretion of the chairman, price advisory committee. Apeda claims that the objective of the price-fixing mechanism is to ensure an appropriate standard.

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