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Agrotech, Finance, Trade

The virtual webinar had the topic of ‘Agriculture Ecosystem: Expectations from Budget 2022’

PHDCCI recently organised a virtual webinar on ‘Agriculture Ecosystem: Expectations from Budget 2022.’ The webinar started with a welcome address by Deepak Pahwa, Chair, FTIC Committee, PHD Chamber. Pahwa said, “Recuperating from the impact of two years of a pandemic, India is working hard to gain from every opportunity to strengthen its position at the global level and utilise the opportunity of trade diversion from China.”

Pradeep Multani, President, PHDCCI in his address mentioned that agriculture continues to be a dominating employment generating sector and contributes a significant proportion to the country’s GDP. He highlighted on identifying areas and crops to integrate the benefit of micro-irrigation with structured governance and execution strategy will help the country climb a newer height of fiscal growth.

BK Sabharwal, Chair, Capital Market & Commodity Market Committee, PHDCCI highlighted that in the Union Budget 2021, the government had a farm credit target of Rs16.5 trillion, which is likely to be revised in Budget 2022 to Rs 18.5 trillion.

Rajesh Kumar Dangeti, Regional Director (Northern Regional Office), SEBI, in his Chief Guest Address said that India is one of the highest producers of many agricultural products in the world. He also highlighted some of the problems which the farmers face with inflation in agricultural products, over-dependence on climate changes, storage facilities, depletion in groundwater, air pollution and environmental sustainability and many others.

This was followed by a speech by Sanjay Aggarwal, Former President, PHDCCI, who stated that India should expedite the signing of free trade agreements with the US, the UAE, Australia, Japan and other countries. According to him, the government should also take up the issue of restoring GSP status with the US as it is the major market for India. Zero duty under GSP status will make Indian exporters more competitive at the global level, is what he opined.

Badri Narayanan Gopalakrishnan, Lead Advisor (Trade and Commerce), NITI Aayog, Government of India said that new foreign trade policy will capture all aspects of new and growing challenges of the exporters and designed in an appropriate way to support the industry to overcome the challenges of the next 10 years.

Niti Bhasin, Delhi School of Economics, the University of Delhi in his speech talked about the New Foreign Trade Policy that should focus on incentivising the export products which are contributing significantly to the exports and has a comparative advantage for India to become a more competitive and balanced trade destination.

Nirmal Khandelwal, Co-Chair, Foreign Trade and Investment Committee, PhD Chamber suggested establishing a body to support MSMEs so that they can be part of GCV (global value chain ) and exports. Loans for the exporter are available at a very high rate in comparison to other emerging economies, so there is a need to rationalise the rate of the loan for exporters.

Bimal Jain, Chair, Indirect Tax Committee, PHD Chamber urged for synchronisation among foreign trade policy, GST laws and customs to make India more Attamanirbhar Bharat.

Madan Sabnavis, Chief Economist, Bank of Baroda, stated that agriculture is the backbone of the economy. He talked about the NREGA project, capital expenditure on agriculture including warehousing, transportation & irrigation facilities.

Sandeep Jain, Director, Tradeswift Broking, focussed on improving agriculture GDP so that the country can witness a consumption revolution.

Kapil Dev, Chief Business Officer, NCDEX talked about the MSP, measures to bring down the cost of production and the government’s long-term approach to improving infrastructure in the agriculture sector.

RN Bhaskar moderated the session and emphasised vibrant future markets for agriculture and subsidies in the agriculture sector.

The virtual webinar had the topic of

AgroPolicy, Oilseeds, Trade

Futures trading in mustard oil on NCDEX has been suspended and stock limits on oils and oilseeds have been imposed

In a bid to reign in the continuous rise in the cooking oil prices since the past one year, the basic duty on crude palm oil, crude soyabean oil and crude sunflower oil has been cut from 2.5 per cent to nil by the Government of India. The agri-cess on these oils has been brought down from 20 per cent to 7.5 per cent for crude palm oil and 5 per cent for crude soyabean oil and crude sunflower oil.

Consequent to the above reduction, the total duty is now 7.5 per cent for crude palm oil and 5 per cent for crude soyabean oil and crude sunflower oil. The basic duty on RBD palmolein oil has been slashed to 12.5 per cent from 17.5 per cent recently. The basic duty on refined soyabean and refined sunflower oil has been slashed to 17.5 per cent from the current 32.5 per cent. Before reduction, the agricultural infrastructure cess on all forms of crude edible oils was 20 per cent. Post reduction, the effective duty on crude palm oil will be 8.25 per cent, crude soyabean oil and crude sunflower oil will be 5.5 per cent each.

Apart from rationalising import duties on palm oil, sunflower oil and soyabean oil, futures trading in mustard oil on NCDEX has been suspended and stock limits on oils and oilseeds have been imposed.

Despite international commodity prices being high, interventions made by Central Government along with State Governments’ pro-active involvement have led to a reduction in prices of edible oils. The department is regularly interacting with the oil industry associations and leading market players and has convinced them to reduce the MRP which will translate to passing on the benefit of duty reduction to end consumers. As per the trend from 167 price collection centres, edible oil prices have declined quite significantly in the range of Rs 5 and 20 per kg in the major retail markets across the country.

Major edible Oil players including Adani Willmar and Ruchi Industries have cut prices by Rs 15 -20 per litre. The other players that have reduced the prices of edible oils are Gemini Edibles & Fats India, Hyderabad, Modi Naturals, Delhi, Gokul Re-foils and Solvent, Vijay Solvex, Gokul Agro Resources and NK. Proteins.

The government has recently started to control the prices of oil concerning soya meal. Stock limit on soya meal which is a major source of protein and constitutes almost 30 per cent of livestock feed has been imposed that will be effective till June 2022 by including it in the Schedule to Essential Commodities Act, 1955. This will cool down the prices and improve supply.

Futures trading in mustard oil on NCDEX