Weekly News 20 - 24 May 2024
Monday, 20 May 2024 (Financial Express) Over 7,000 farmer groups sell products on ONDC
More than 7,000 farmers' collectives across various states in India are now leveraging the government's e-commerce platform, Open Network for Digital Commerce (ONDC), to sell a diverse range of agricultural products including rice, pulses, millets, honey, mushrooms, spices, and value-added products. ONDC, which serves as an alternative to global e-commerce giants like Amazon and Walmart, aims to support small enterprises and provide better market access for farmers. Since April 2023, over 7,020 Farmer Producer Organisations (FPOs) have joined the platform, facilitating the sale of 3,100 varieties of agricultural products. This initiative empowers farmers with direct access to digital marketing, online payment, and both business-to-business and business-to-consumer transactions.
The platform integrates over 30 digital applications such as Mystore, PayTM, Magicpin, and Delhivery, enhancing intercity logistics. For instance, the Ridhi Sidhi Krishi Producer Company in Madhya Pradesh, which has 520 members, reported significant sales from pulses and plans to expand its product range. Similarly, the Chhatrapati Sambhaji Maharaj Farmer Producer Company in Maharashtra, with around 1,000 members, is preparing to sell organic millet products. The BASIX Krishi Samruddhi group, which has supported 70 FPOs in Odisha, West Bengal, and Uttar Pradesh, has seen considerable success in selling aromatic rice, pulses, and turmeric powder. Launched in April 2022, ONDC is a Section 8 company established by the Department for Promotion of Industry and Internal Trade to boost small-scale agricultural commerce.
Tuesday, 21 May 2024 (Business Standard) Govt to conduct 2nd round of consultation for new EV schemes
The Centre is gearing up for a second round of consultations with automotive industry stakeholders to refine its flagship Scheme to Promote the Manufacturing of Electric Passenger Cars in India. This initiative aims to boost investments in electric vehicle (EV) manufacturing through import concessions. The Ministry of Heavy Industries plans to release policy guidelines and begin accepting applications after July 15, with a 120-day window for publishing guidelines and opening the application process. The second round of consultations is set to conclude by the end of this month.
In its initial engagement, Tesla and other global automotive manufacturers sought clarity on the new EV policy, particularly regarding investment guidelines and the domestic value addition (DVA) timeline. The ministry has now clarified that the definition of investment will align with the PLI (production-linked incentive) Auto scheme, encompassing expenditures on plant, machinery, equipment, and associated utilities, but excluding technology royalty payments. Bosch had requested the inclusion of royalties as investments, but this was not adopted. The new EV policy, announced in March, offers reduced import taxes for original equipment manufacturers committing at least $500 million to establish a manufacturing plant within three years and achieving specific DVA targets: 25% within three years and 50% within five years.
Wednesday, 22 May 2024 (Financial Express) Govt readying SOP for FTA negotiations
The Ministry of Commerce is formalising the knowledge gained from recent Free Trade Agreement (FTA) negotiations into a Standard Operating Procedure (SOP) to guide future efforts. India has FTAs with 26 countries and is negotiating with 44 more, aiming to cover 74.7% of its exports. The approach to FTAs has shifted from an East-to-West focus, with newer negotiations involving complex issues such as intellectual property, environmental standards, and the movement of people. The SOP is intended to streamline the negotiation process, ensuring comprehensive analysis and structured interactions with various stakeholders.
The SOP draft, discussed during a retreat with officials from multiple ministries and trade experts, outlines India's strategy for future FTAs, including perspectives on climate, gender, and labour standards. It aims to provide clear direction on negotiating priorities and processes. The draft will be refined and circulated to core ministries soon. Other topics covered at the retreat included India's trade strategy for 2047, economic modelling of FTAs, and leveraging FTAs to address issues like the Carbon Border Adjustment Mechanism, supply chain disruptions, critical minerals, and artificial intelligence.
Thursday, 23 May 2024 (Financial Express) Actively encourage wealth creation, startups, says Modi
Prime Minister Narendra Modi recently emphasised his government's commitment to fostering startups and wealth creation in India, following praise from prominent startup founders at an event. Leaders from Zomato, Urban Company, Mamaearth, and Map My India commended the government's support for entrepreneurship, technological innovation, and manufacturing. Modi highlighted these endorsements on social media, noting that the BJP-led government actively encourages startups and provides an environment conducive to their success. This praise, occurring amid the Lok Sabha election campaign, is viewed as an industry endorsement of the Modi administration.
At the event, startup founders shared personal stories of overcoming humble beginnings and building successful companies with government support. Zomato's Deepinder Goyal and Mamaearth's Varun Alagh both credited the government's initiatives for their entrepreneurial success, particularly in Tier-2 and 3 cities. Urban Company's Abhiraj Singh Bhal praised the Startup India initiative for fostering a skilled workforce. Map My India's Rohan Verma highlighted the government's role in opening strategic sectors like space and geospatial, which he believes will propel the country forward. Modi reiterated his government's dedication to transforming these crucial sectors and supporting innovation and growth across the nation.
Friday, 24 May 2024 (mint) Indian ready-to-eats storming palates
While Indian spices are under scrutiny for chemical content by regulatory bodies in Singapore, Hong Kong, and Europe, Indian ready-to-eat (RTE) food items are gaining popularity in developed countries. Exports of RTE foods, including breakfast cereals, sweets, snacks, and other products, have surged from $739.64 million in FY2019 to $1.52 billion in FY2024. This growth highlights India's increasing competitiveness in the global market. Experts attribute this success to the appeal of Indian cuisine, efficient supply channels, and the quality and variety of RTE products, which align with the fast-paced lifestyles of Western consumers.
The increase in RTE food exports contrasts with a marginal rise in imports, which grew from $304.96 million in FY2019 to $360.37 million in FY2024, reflecting a 13.6% decline from the previous year. This reduction in imports suggests changing domestic consumption patterns and increased local production. Key export destinations include the US, UK, UAE, Canada, Australia, and several European and Asian countries. The rising demand for Indian breakfast cereals, sweets, and snacks, demonstrated by significant year-on-year growth, indicates a growing appreciation and awareness of Indian culinary products globally.
