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Horticulture, North America, Supply Chain, Trade

Removal of additional retaliatory duties and additional rates for the import of US apples, walnuts and almonds will not result in any negative impact on domestic producers

With the decision to resolve six outstanding World Trade Organisation (WTO) disputes between the US and India through Mutually Agreed Solutions in June 2023, India has withdrawn additional duties on eight US-origin products, including apples, walnuts and almonds vide notification number 53/2023 (Custom).

Additional duties of 20 per cent each on apples and walnuts and Rs 20 per kg on Almonds were imposed on the US’s products in 2019 over and above the Most Favoured Nation (MFN) duty as a retaliation to the US’s state protectionist measure of increasing tariffs on certain steel and Aluminium products. These additional duties imposed by India on US-origin products have been withdrawn as the US agreed to provide market access to Steel and Aluminium products under the exclusion process. There is no reduction on the Most Favoured Nation (MFN) duty on apples, walnuts and almonds, which still applies to all imported products, including US-origin products, at 50 per cent, 100 per cent and Rs 100 per kg, respectively.

Further, DGFT, vide its notification number 05/ 2023 dated 8 May 2023, made an amendment in import policy for Apples under ITC (HS) 08081000 by applying MIP (Minimum Import Price) of Rs 50 per Kg for imports from all countries except Bhutan. Therefore, this MIP will also apply to apples from the US and other countries (excluding Bhutan). This measure would protect against the dumping of low-quality apples and from any predatory pricing in the Indian market.

This measure will not result in any negative impact on domestic apple, walnut and almond producers. Rather, it will result in competition in the premium market segment of apples, walnuts and almonds, thereby ensuring better quality at competitive prices for our Indian consumers. Thus, the US apples, walnuts and almonds would compete on the same level playing field as all other countries.

The market share of the US apples dwindled as other countries benefited from the imposition of additional retaliatory duties on the US apple and walnut imports. This is evident in the increase of apple imports from countries besides the US, from $ 160 million in FY 2018-19 to $ 290 million in FY 2022-23. Turkey, Italy, Chile, Iran, and New Zealand emerged as prominent apple exporters to India, effectively acquiring the market share once held by the US. Similarly, in the case of walnuts, the imports increased from $ 35.11 million in FY 2018-19 to $ 53.95 million in FY 2022-23, and Chile and UAE became the largest exporters to India. In the last three years, the import of almonds has been about 233 thousand MT, while domestic production is only 11 thousand MT, and India is highly dependent on imports. Therefore, the removal of additional duties will now ensure fair competition among the countries which are exporting these products to India.     

Removal of additional retaliatory duties and additional

Foodgrains, Supply Chain, Trade, World

Pierre-Olivier Gourinchas, IMF’s Chief Economist, cautioned that such restrictions could exacerbate food price volatility worldwide and lead to retaliatory measures

The International Monetary Fund (IMF) has recommended that India lift restrictions on the export of a particular type of rice, as these restrictions could contribute to global inflation. To keep domestic rice supplies stable during the festive season, the Indian government banned the export of non-basmati white rice on July 20.

This type of rice accounts for about 25 per cent of India’s total rice exports. However, there will be no change in export policy for par-boiled non-basmati rice and basmati rice, which make up the bulk of India’s rice exports. Pierre-Olivier Gourinchas, IMF’s Chief Economist, cautioned that such restrictions could exacerbate food price volatility worldwide and lead to retaliatory measures.

India’s non-basmati white rice exports totalled $4.2 million in 2022-23, with major destinations including the US, Thailand, Italy, Spain, and Sri Lanka.

The IMF has projected India’s growth rate for fiscal year 2024 to be 6.1 per cent, up slightly from its previous estimate of 5.9 per cent in April. The IMF has also praised India’s world-class digital public infrastructure, which is driving efficiency gains for businesses. The Indian economy has been robust, and the IMF has called for reforms to increase female labour force participation and training opportunities for youth. Despite the challenges, India’s growth rate is expected to remain above average for the region, with inflation projected to be under control.

Pierre-Olivier Gourinchas, IMF's Chief Economist, cautioned that

AgroPolicy, Horticulture, Supply Chain, Trade

Apples from the US to compete on the level playing field with other countries

With the decision to the resolution of six outstanding World Trade Organisation (WTO) disputes between the US and India through mutually agreed solutions as jointly communicated during the official state visit of the Prime Minister to the USA, India will remove additional duties on eight US products, including apples.  

The decision will not result in any negative impact on domestic apple producers and will result in competition in the premium market segment ensuring better quality at better prices for consumers.

After the removal of this duty, the apples from the US would compete on a level playing field with other countries.

The decision will ensure that only premium quality apples could be imported for which there exists a specific market segment and specific demand.

An additional 20 per cent duty was imposed on US apples in 2019 in response to USA’s measure to increase tariffs on certain steel and aluminium products. There is no reduction on Most Favoured Nation (MFN) duty on apples which is still applicable on all imported apples including in the USA at 50 per cent.

The import of apples from the world has been stable in the range of $ 239 – 305 million (except in 2021-22 when it was $ 385 million) in the last five financial years since the application of these additional duties on US apples. The import of apples from the USA has decreased from $ 145 million (127,908 Ton) in FY 2018-19 to only $ 5.27 million (4,486 Ton) in FY 2022-23.

The market share of the US apples was taken by other countries due to the imposition of additional retaliatory duty on US apples. This is reflected as the import of apples from countries other than the US increased from $ 160 million in FY 2018-19 to $ 290 million in FY 2022-23. Turkey, Italy, Chile, Iran and New Zealand are other top exporters to India of apples which took the market share of the US.

Apples from the US to compete on

Environment, Nature, Sustainability, World

The Globally Important Agricultural Heritage Systems (GIAHS) are communities which base their livelihoods and food security on their close relationship with their surroundings

The United Nations Food and Agriculture Organisation (FAO) awarded certificates to 24 new Globally Important Agricultural Heritage Systems (GIAHS) sites.

The 24 sites, which have been designated by FAO since the last ceremony in 2018, are located in 12 countries, including Brazil, China, Spain, Ecuador, Iran, Italy, Japan, South Korea, and Morocco.

At the award ceremony, which also marked the International Day for Biological Diversity, Qu Dongyu, FAO Director-General said that many of the GIAHS had become reservoirs of biological diversity.

“In the context of agri-food systems and rural areas, we need to consider the combined conservation of biodiversity and food diversity. This is the most pragmatic way to raise public awareness of biodiversity.

“Agricultural heritage systems showcase practices that offer solutions to climate change and biodiversity loss, in particular at the local level,” he said.

The Globally Important Agricultural Heritage Systems (GIAHS) are communities which base their livelihoods and food security on their close relationship with their surroundings.

24 new Globally Important Agricultural Heritage Systems (GIAHS) sites are:

Brazil: Traditional Agricultural System in the Southern Espinhaço Range, Minas Gerais.

China: Shexian Dryland Stone Terraced System; Anxi Tieguanyin Tea Culture System; Ar Horqin Grassland Nomadic System in Inner Mongolia; Qingyuan Forest-Mushroom Co-culture System in Zhejiang Province.

Ecuador: Andean chakra: An Ancestral Agricultural System of Kichwas Cotacachi Communities; Amazonian Chakra, a traditional agroforestry system managed by Indigenous communities in Napo province.

Iran: Qanat-based Saffron Farming System in Gonabad; Grape Production System in Jowzan Valley

Italy: Soave Traditional Vineyards; Olive groves of the slopes between Assisi and Spoleto

Japan: Biwa lake to land integrated system; Fruit Cultivation System in Kyoutou Region, Yamanashi.

Republic of Korea: Geumsan Traditional Ginseng Agricultural System; Damyang Bamboo Field Agriculture System.

Mexico: Ich Kool: Mayan milpa of the Yucatan peninsula.  

Morocco: Argan-based agro-sylva-pastoral system within the area of Ait Souab-Ait Mansour; The Ksour of Figuig: Oasis and Pastoral Culture Around the Social Management of Water and Land.

Spain: Agricultural System Ancient Olive Trees Territorio Sénia; Historical Irrigation System at l’Horta de València; Agrosilvopastoral system Mountains of León;

Thailand: Thale Noi Wetland Pastoral Buffalo Agro-ecosystem

Tunisia: Hanging Gardens from Djebba El Olia; Ramli Agricultural System in the Lagoons of Ghar El Melh.

 GIAHS, a flagship program of FAO, was established in 2002 to identify and protect important agricultural heritage sites and their associated biodiversity, landscapes, knowledge systems, and cultures. This network currently consists of 74 systems across the world, according to the FAO. 

The Globally Important Agricultural Heritage Systems (GIAHS)

Company News, Europe, Trade

The Biolchim Group will be a key part of the strategic foundation of the Huber AgroSolutions (HAS) business unit of HEM that currently includes Miller Chemical & Fertilizer (Miller).

U S based J.M. Huber Corporation (Huber), a global, family-owned specialty engineered materials manufacturing company—announced that it has signed a binding agreement to acquire full control of the Biolchim Group from NB Renaissance, Chequers Capital and the Biolchim Group management team. The Biolchim Group, managed and headed by Galileo Quattro SARL, has its main operating base in Italy and is a leading producer and distributor of a full range of specialty plant nutrition and biostimulants. Closing of the sale, anticipated to occur by the end of 2022, is subject to customary closing conditions including the foreign direct investment approval in Italy.

All the companies in the Biolchim Group—including Biolchim S.p.A, Cifo, Ilsa S.p.A, Matécsa Kft, and West Coast Marine-Bio Processing Corp.—are within the scope of the purchase. The Biolchim Group operates eight production plants globally and its products—biostimulants, trace elements, and water soluble, liquid and foliar fertilizers—are present in over 70 countries worldwide. The Biolchim Group has a rich 50-year history of serving the agricultural industry.

Upon close of the sale, the Biolchim Group will become part of Huber Engineered Materials (HEM), a company within the Huber portfolio of businesses. The Biolchim Group will be a key part of the strategic foundation of the Huber AgroSolutions (HAS) business unit of HEM that currently includes Miller Chemical & Fertilizer (Miller).

Leonardo Valenti, CEO of the Biolchim Group since 2008 and a pioneer in the plant nutrition industry, will remain committed to lead the Biolchim Group through the next phase of growth and the integration, leveraging the synergy potential of the strategic combination of both entities.

Huber AgroSolutions’ vision is to become a leading formulator of sustainable, high-performing agricultural products globally. The acquisition of the Biolchim Group, which has achieved impressive growth due to its broad offering of biostimulant and specialty nutritional products, significantly advances this vision by bringing an innovative and entrepreneurial workforce and culture to HAS. Together the companies share a culture that is deeply committed to plant nutrition and the success of its many customers around the globe.

The complementary sales footprint of both companies will enable expanded customer and product access into key agricultural regions globally. In addition to remaining committed to serve the Biolchim Group’s existing customer base, this also ideally positions HAS to advance the sales of the Biolchim Group’s products through its strong relationships with US-based growers and its complementary distribution network in Latin America and select countries in Europe, the Middle East and Africa. The Biolchim Group’s sales channels are ideally suited to advance the sales of various Miller products via its strength in Europe and its global subsidiary network.

The Biolchim Group will be a key