India’s agricultural and processed food products exports are set to exceed the target of $23 billion in FY22 thanks to a sharp spike in shipments of rice, wheat, fresh & processed fruits and vegetables, and livestock products.

Exports of commodities under the Agricultural and Processed Food Products Export Development Authority (Apeda) basket have crossed $21.45 billion during April-February (FY22). In FY21, agricultural and processed food products were valued at $20.39 billion.

According to the DGCIS data, rice exports crossed $8.67 billion in the first 11 months of FY22. India has been the world’s largest rice exporter in the last decade — export earnings stood at a record $8.7 billion in FY21 and could cross $9 billion this fiscal. India exports rice to more than 90 countries.

The country is likely to continue holding a major share of global rice trade in the current fiscal, with an estimated shipment of 21 million tonne, an increase of more than 24% from the previous financial year. The country’s rice exports in the current financial year is likely more than the combined exports of the next three largest exporters — Thailand, Vietnam and Pakistan.

Wheat exports in FY22 so far have witnessed the sharpest spike of 380% to $1.74 billion compared to the year-ago period. The country had been a relatively marginal player in global wheat trade until FY21, but the prospects now looks very bright given the elevated global prices and ample domestic stocks and production. The government is targeting increasing wheat exports in FY23 on the rising global demand due to the Russia and Ukraine conflict.

“During Covid-19 pandemic, while many countries were stockpiling their rice and wheat output, we took a proactive role in organising logistics and developing value chains which has given a boost to cereal exports,” M Angamuthu, chairman, APEDA, told FE.

During April-January (FY22), exports of meat, dairy and poultry products rose by 13% to $3.4 billion compared to $3 billion a year ago.

Fresh fruits and vegetables exports in the first 10 months of FY22 rose by 16% to $1.2 billion, while the processed fruits and vegetables shipment rose by around 11% to $1.2 billion compared to same period in FY21.

Apeda is giving a thrust to exports of cereals as well as those unique and Geographical Identification (GI) certified agri produce from various states. Darjeeling Tea and Basmati Rice are the two most popular GI-tagged agricultural products of India, which have already created a niche global market. However, officials said, there are many more GI-tagged products from various states whose exports potential could be harnessed.

Angamuthu said Apeda has initiated registration of pack-houses for horticulture products to meet the quality requirements of the international market. Registration of export units for peanut shelling and grading and processing units, for instance, is to ensure quality adherence for the European Union and non-EU countries.

Apeda basket of products exclude marine products, tobacco, coffee and spices.

The export promotion body has taken several initiatives to promote GI-registered agricultural and processed food products in India by organising virtual buyer-seller meets with the major importing countries across the world.

In order to ensure seamless quality certification of products to be exported, the export promotion body has recognised 220 labs across India to provide services of testing a wide range of products and exporters.

The country’s total smartphone exports are set to be upwards of Rs 42,000 crore ($5. 6 billion) in the justending fiscal, a growth of nearly 83% against Rs 23,000 crore achieved in 2020-21. The growth has been meteoric if one considers that till just four years ago, smartphone exports were only at around Rs 1,300 crore (in 2017-18), which then moved up sharply to Rs 11,200 crore in 2018-19, and thereafter to Rs 27,200 crore in 2019-20.
The numbers were subdued in 2020-21 at Rs 23,000 crore due to production and supply disruptions because of the Covid outbreak in the year. The surge in exports is being seen as exemplary as it also came at a time when the broader electronics market was suffering from severe component shortages due to the semiconductor crunch, apart from the disruptions because of the Covid-related lockdowns and restrictions. India’s stressed relations with China, a key supplier of critical components, had also resulted in certain parts being held up, or coming in slower than usual. But the industry seems to have overcome this challenge as well.

“The impressive performance comes in the backdrop of three devastating Covid waves, loss of workforce, lockdowns and the worst-ever crisis on the supply chain, including acute scarcity of chips and semiconductors,” Pankaj Mohindroo, chairman of industry body Indian Cellular and Electronics Association (ICEA) which worked on the data, said.

ICEA said that against earlier export destinations in South Asia, Africa and parts of Middle East/Eastern Europe, the India-made smart- phones are now going to some of the world’s most-advanced markets. “Companies now target some of the most competitive and advanced markets in Europe and developed Asia. These markets demand the highest levels of quality, and manufacturing units located in India are up to the task,” Mohindroo said. Apple and Samsung have the lion’s share in the exports tally. While Apple is understood to have exports upwards of Rs 12,000 crore (from models such as iPhone SE, iPhone 11, and iPhone 12), for Samsung this figure is estimated at around Rs 20,000 crore.

NEW DELHI: The production linked incentive (PLI) scheme for automobile and auto component sectors has attracted investment proposals of Rs 74,850 crore for the next five years, 76.11 per cent higher than the planned target of Rs 42,500 crore, the government data showed on Tuesday.
The proposed investment of Rs 45,016 crore is from approved applicants under Champion OEM Incentive scheme and Rs 29,834 crore from approved applicants under Component Champion Incentive scheme, according to data released by the ministry of heavy industries.
A total of 115 companies had filed their application under the PLI scheme for automobile and auto component industry in India which was notified on September 23, 2021.
Out of which, five Auto OEM companies had applied for both the parts of the scheme. The scheme was open for receiving applications till January 9, 2022.

Incentives are applicable under the scheme for Determined Sales of Advanced Automotive Technology (AAT) products (vehicles and components) manufactured in India from April 1, 2022 onwards for a period of 5 consecutive years.
“The overwhelming response shows that Industry has reposed its faith in India’s stellar progress as a world-class manufacturing destination which resonates strongly with Prime Minister’s clarion call of AtmaNirbharBharat – a self-reliant India. India will surely take a huge leap towards cleaner, sustainable, advanced and more efficient Electric Vehicles (EV) based system,” Union heavy industries minister Mahendra Nath Pandey said in a statement.
The government has introduced the PLI scheme for automobile and auto component industry for enhancing India’s manufacturing capabilities for Advanced Automotive Products (AAT) with a budgetary outlay of Rs 25,938 crore.
The PLI scheme for automobile and auto component industry proposes financial incentives to boost domestic manufacturing of Advanced Automotive Technology (AAT) products and attract investments in the automotive manufacturing value chain.
Its prime objectives include overcoming cost disabilities, creating economies of scale and building a robust supply chain in areas of AAT products. It will also generate employment. This scheme will facilitate the automobile industry to move up the value chain into higher value-added products.

Merchandise exports will exceed $30 billion for an 11th straight month in February, commerce and industry minister Piyush Goyal said on Thursday, adding that outbound shipments can potentially cross even the ambitious target of $400 billion set for the current fiscal.

Addressing industry executives virtually at a CII event, Goyal said goods exports already hit $25.3 billion in the first three weeks of February, up 26.4% from a year before and 26.7% from the pre-pandemic (same period in FY20) level. The exports stood at $336 billion until January this fiscal.

Merchandise exports had shrunk 7% in FY21 from a year earlier to $292 billion in the wake of the pandemic. However, global demand for goods improved dramatically this fiscal following an industrial resurgence in advanced economies.

Similarly, services exports will likely scale a fresh peak of $250 billion this fiscal, the minister said, adding that robust growth in this sector prompted his ministry to revise the targets for FY22 twice from the initial goal of $225 billion. Services exports were to the tune of $206 billion in FY21.

The minister said the national single-window system, which aims to become a “one-stop shop” for investors to apply for various approvals and make it easier for them to set up units, has already onboarded 20 central government departments and 14 states/Union territories. The ‘know-your-approval’ portal of the single-window system has listed a total of 3,439 approvals, 2,895 of which are typically granted by states. “We are committed to a seamless and simple approval process,” he said.

As India prepares to get into a raft of free trade agreements (FTAs) this year and next, Goyal said while the government will try its best to ensure that the pacts don’t harm interests of domestic industry, some amount of give and take in trade negotiations is always inevitable. At the same time, he asked industry to take advantage of the ample opportunities that are set to come its way due to the FTAs. India last week signed the comprehensive economic partnership agreement with the UAE, its first such FTA with any economy in over a decade.

Goyal asked industry to identify the regulatory processes that can be eased further. The government has simplified the need for more than 24,500 compliances and decriminalised as many as 750 offences to reduce India Inc’s compliance burden and promote ease of doing business, he said.

As many as 10 start-ups turned into unicorns in just 53 days of 2022, Goyal said, highlighting the improving business climate in the country. A record 42 start-ups grew into unicorns in 2021 alone.

https://www.financialexpress.com/economy/exports-to-exceed-30-bn-in-february-may-even-cross-record-target-of-400-bn-in-fy22-piyush-goyal/2443624/

December was the brightest period for the Agricultural and Processed Food Products Export Development Authority (APEDA) as exports of the products promoted by it were the highest in a month this fiscal. The value of shipments increased to a seven-month high of 37 per cent ($2.44 billion). With the escalation of tension in Ukraine, if the global commodities prices flare up, it may help APEDA to achieve its target of $23.7 billion for the current fiscal.

Exports of APEDA-promoted major agriculture and processed products, broadly divided into 27 categories, touched $17.47 billion (₹1,29,782 crore), up by 23.83 per cent over the $14.11 billion registered in the year-ago period, according to the latest export data. However, to achieve the target the current volume of shipments need to be maintained during January-March quarter at previous quarter level, experts said.

74% export target achieved

“Already 74 per cent of the target has been achieved in first three quarters and growth momentum is likely to be same in last quarter (January-March) as well,” said M Angamuthu, Chairman of APEDA. There was a slight slowdown during July-September, otherwise target could have met before end of this fiscal, he said.

APEDA has developed product metrics for about 75 products in the top 50 countries and will actively encourage sustainable growth in their shipments, Angamuthu said. “Our endeavour is to make India a reliable food and nutritional security provider, globally,” he said.

According to official data, exports of non-Basmati rice grew 46 per cent to $4.49 billion (₹33,350 crore), buffalo meat by 6 per cent to $2.5 billion (₹18,674 crore) and wheat 417 per cent to $1.44 billion (₹10,694 crore), while Basmati rice dropped 19 per cent to $2.38 billion (₹ 17,689 crore) during April-December of current fiscal. These four commodities make up 62 per cent of the total exports of the APEDA-promoted products this year.

Opportunity for barley

“The Ukrainian crisis will boost wheat, maize and honey exports from India. It opens up an opportunity in barley exports, too. All these export opportunities could be realised if there is no supply chain impediments,” said S Chandrasekaran, a foreign trade policy expert. As global prices of commodities may flare up amid the geopolitical tension, it may help the country to get higher realisation in global markets in agri commodities, he added.

APEDA-promoted products have nearly 50 per cent share in the country’s overall agricultural export of $41.25 billion (in 2020-21), whereas marine products are the second most contributor with 14 per cent share, followed by spices with 10 per cent share.

https://www.thehindubusinessline.com/economy/agri-business/growth-in-agri-products-exports-hits-7-month-high-in-december/article65074005.ece

Uttar Pradesh’s Varanasi, which is the gateway to Poovanchal region consisting of 17 districts, is fast becoming a buzzing hub for exports of agricultural and processed food products. The setting up of customs clearance and cold room facilities at Lal Bahadur Shastri International Airport aided exports from the religious town, which also has linkages to a robust network of Farmers Producer Organisations (FPOs).

More than 20,000 tonne of cereals, fruits and vegetables sourced from the farmers in several districts including Varanasi, Mirzapur, Prayagraj and Gorakhpur have been exported to Nepal, Bangladesh, the United Arab Emirates, Bahrain, Qatar, Saudi Arabia, the United Kingdom and Australia in the last six months.

“Currently, on an average, around three tonne of green peas and green chillies are being exported daily to the Persian Gulf countries from Varanasi airport,” said Shaswat Pandey, CEO, Trisagar Farmers Producer Company, an FPO based in Sant Ravidas Nagar district, which has around 350 farmers as members. Besides, fruits and vegetables are being transported via road to Nepal and Bangladesh.

Pandey said farmers associated with the FPO grow chillies, green peas, okra, cucumber and other green vegetables which are then exported through the Varanasi airport, where the Agricultural and Processed Food Products Exports Development Authority (APEDA) has set up cold room as well as customs clearances facilities last year. APEDA also facilitated linkages of FPOs with exporters based in Mumbai.

“Exports ensure better price realisation and export opportunities. Infrastructure was virtually absent in eastern Uttar Pradesh earlier,” Shardool Vikram, managing director, Jaya Seed Producers Company, based in Varanasi, said. The FPO, which has 267 members, was instrumental in exporting mangoes, fruits and vegetables to UAE, Bahrain and the United Kingdom.

To boost exports from region, APEDA organised a series of capacity building programmes for the farmers and FPOs followed by international buyer-seller meets, which provided the platform for exports. “We are strengthening the export supply chain around Varanasi region which acts as a window to the Poorvanchal region of Uttar Pradesh,” said M Angamuthu, chairman, APEDA.

Currently, APEDA in collaboration with Uttar Pradesh Mandi Parishad is setting up a pack house and irradiation centre which is mandatory for mango exports to the United States at Mathura which would further boost exports from Uttar Pradesh.

As Varanasi is located on the plains of river Ganges, it has fertile soil which allows production of good quality agri-produce. APEDA, in collaboration with reputed institutions located in the poovanchal, such as Indian Institute of Vegetable Research, International Rice Research Institute and Banaras Hindu University are currently helping farmers in boosting exports.

APEDA is currently developing agri-exports infrastructure at Gorakhpur region following establishment of Kushinagar International Airport through collaboration with institutions such as DDU Gorakhpur University and Indian Institute of Seed Science, Mau.

Source: https://www.financialexpress.com/economy/varanasi-fast-emerging-as-an-agri-export-hub/2413761/

India’s merchandise exports in December touched $ 37.29 billion, the highest-ever monthly figure, according to Commerce and Industry Minister Piyush Goyal.

Addressing a press conference here on Monday, Mr. Goyal highlighted the pursuit of export-oriented programmes by the Uttar Pradesh and Tripura governments.

“In every sector, there has been significant growth in exports,” said Mr. Goyal. He claimed that every month’s export data from April to December 2021 had displayed a “historic high”

Export figures for December, reflected a 37% increase from $27.22 billion a year earlier.

‘48.9% rise in April-Dec.’

Merchandise exports grew 48.9% to $299.74 billion in the April-December 2021, from $201.37 billion seen in the same period of the previous year, Mr. Goyal said.

The Minister said the services side, especially the IT sector, had received special focus of the government. “We have seen $178 billion [services exports] in the first nine months and we are well on track to go up to about $230 billion or upwards of that, which will also be a historic high [for] services exports,” he said, explaining that the sector had performed successfully despite the “big setback” experienced by the travel and tourism industry because of the ongoing pandemic.

He also said that credit should also go to India’s diplomatic missions across the world, exporters, industry associations and export promotion councils for collectively working to explore newer global regions and to help expand the “export basket”.

Source: https://www.thehindu.com/business/december-goods-exports-touch-373-billion-high-goyal/article38102794.ece

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