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HomePosts Tagged "US"
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Trade Organisation (WTO) disputes between the US and India through Mutually Agreed Solutions in June 2023, India has withdrawn additional duties on eight US-origin products, including apples, walnuts and almonds vide notification number 53/2023 (Custom).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 These additional duties imposed by India on US-origin products have been withdrawn as the US agreed to provide market access to Steel and Aluminium products under the exclusion process.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

Agrotech, Climate, Company News, Finance, Start ups, World

CH4 Global will meet the growing global demand for enteric methane mitigation solutions in animal agriculture

CH4 Global, Inc., a climate tech company on the path to radically reducing GHG emissions in animal agriculture, announced it has raised $29 million in Series B funding. The company will use the funds to build and validate the CH4 Global EcoPark, an aquaculture and production facility that will make CH4 Global’s signature product, Methane Tamer, at scale.

This round, led by DCVC, DCVC Bio, and Cleveland Avenue – with participation from other investors with a strong interest in climate change – brings the total raised to date to nearly $47 million. It also underscores market demand for safe, viable solutions to vastly reduce enteric methane from ruminant livestock.

When added to cattle feed, Methane Tamer—which uses red seaweed (Asparagopsis)—reduces the animal’s methane emissions by up to 90% while also reducing the feed energy lost to methane emissions. With the development of its CH4 Global EcoPark, the company is poised for expansion in key markets and with key partners throughout all six inhabitable continents.

This is a key development in the fight against climate change. The 1.5 billion cows on the planet produce more than 150 million tons of methane annually — the largest single source of methane globally. At more than 12 billion tons CO2-e per year (at an average of 100 kg methane/cow), this is a larger GHG output than from the US, the EU, and India combined. Moreover, the UN cites methane as over 80 times more impactful than CO2 on global warming over the next 20 years.

“We are receiving massive interest from governments, food producers and farmers of all sizes, fueling our sense of urgency that we must act now to avoid a climate tipping point. The pressure is on with new regulations and the desire to produce at a measurably lower impact. What we’ve developed at CH4 Global is what we call a CH4 Global EcoPark, which enables low-cost growth and processing of Asparagosis.” said Steve Meller, PhD, co-founder and CEO, of CH4 Global. “We are formulating our unique feed supplement product, Methane Tamer, to meet the specific needs of each cattle market segment, starting with feedlot operations, beef and dairy, as well as for grazing dairies. Eventually, we will also formulate for remote and generally unattended cattle around the world.”

“CH4 Global’s secret sauce is its product, plain and simple: the feed additive it has expertly formulated stands apart from other seaweed-based offerings,” said John Hamer PhD, Managing Partner at DCVC Bio and a member of the CH4 Global board of directors. “DCVC Bio is thrilled to back Steve and his exceptional team: they are ready to scale up a critical solution to climate change.”

CH4 Global will meet the growing global

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

Company News, World

The Mercaris team will accelerate the development of Argus agriculture pricing and analytics in the Americas, and open up opportunities in biofuels and other agricultural inputs

Energy and commodity price reporting agency Argus has acquired Mercaris, the leading provider of sustainable agriculture prices and analytics in the US. 

Mercaris’ price assessments, analytics and forecasts for organic and non-GMO (non-genetically modified) agriculture cover organic corn, soybeans, soybean meal, wheat and other small grains, plus non-GMO corn and soybeans, as well as organic dairy markets. Its price assessments for cash crops of organic soybeans and corn adhere to the IOSCO Principles for Price Reporting Agencies and are used as the basis for physical and over-the-counter options contracts.

Besides price assessments, Mercaris provides acreage estimates, supply/demand analysis, and facilities density mapping to customers across the agriculture supply chain in the US. These include farmers, processors and retailers alongside government entities, financial and agricultural inputs companies.   

The addition of the Mercaris team will accelerate the development of Argus agriculture pricing and analytics in the Americas, and open up opportunities in biofuels and other agricultural inputs. 

Adrian Binks, Argus Media chairman and chief executive said, “We are pleased to further expand Argus agriculture capabilities in the Americas.  The development of sustainable agriculture is critical as the world embraces the transition to net zero.  The integration of Mercaris into Argus will allow us to scale our offering and provide valuable new market transparency.”

Kellee James, founder and chief executive of Mercaris added, “We are excited to become part of Argus which presents a great opportunity to leverage their trusted brand, global reach and scale with our best-in-class sustainable agriculture offering. Together, we will be able to broaden Argus agriculture insights both within the US and internationally and enhance our existing product portfolio, better serve our customers, and accelerate product development into related markets.”

The Mercaris team will accelerate the development

Acquaculture, India, Supply Chain, Trade

India’s shrimp exports to China are likely to cross $ 1.2 billion this fiscal compared to $ 0.8 billion in the previous financial year

The shrimp sector will see revenue growth of 5 per cent year-on-year in fiscal 2024, driven by increasing demand from China, which will shore up exports to a near-lifetime high of $ 5.3 billion seen in fiscal 2022. This growth will largely be volume-driven, allowing the operating margin to bounce back to 7.5 per cent as costs soften, according to CRISIL Ratings.

Debt is likely to contract and part-funding such as capex and incremental working capital requirements will be comfortably absorbed by the strong balance sheets of the players, it added.

India, Ecuador and Vietnam are the top three suppliers of shrimp, while the US, EU and China are the top three consumers. India supplies 70 per cent of its produce to these three regions.

In the year 2023, Indian shrimp players were impacted due to extreme heat waves affecting production, shortage of containers and higher logistics costs to the US and EU and exports to China were muted amid continued lockdowns there. This has led to Ecuador, one of India’s major competitors, seizing the lead in shrimp exports.

In 2023-24, however, good produce backed by normal weather patterns and steady demand from China is expected to drive revenue for the Indian players.

India’s shrimp exports to China are likely to cross $ 1.2 billion this fiscal compared to $ 0.8 billion in the previous financial year. With logistics costs normalising, demand from the US and Europe should revive from the lull last season.

“Buyers from the US and Europe prefer shrimps processed in India because of better quality- and disease-control measures. With supply chains getting restored, Indian exporters can replace Ecuadorian suppliers and regain their lost market share.

“Revival in the Chinese economy will also aid growth in shrimp exports from India. Revenue will grow 5 per cent in fiscal 2024 on the back of volume growth of 8-10 per cent despite the reduction in realisations,” Himank Sharma, Crisil Ratings Director said.

However, the report said, with the drop in input costs being steeper than that in realisations, the margin may inch up to the erstwhile level of 7.5 per cent.

Meanwhile, in anticipation of higher demand, shrimp players are expanding capacities and will add close to 20 per cent of their existing gross block this fiscal.

“The shrimp sector has displayed financial prudence for quite some time now. Hence, despite moderate debt addition over the medium term, credit profiles will remain strong.

“Total outside liabilities to tangible net worth and interest coverage ratios will remain comfortably 0.5 times as on March 31, 2024, and 8 times in fiscal 2024, respectively,” Nagarjuna Alaparthi, Crisil Ratings Associate Director said.

India's shrimp exports to China are likely

Company News, People, R&D, Sustainability, World

The study found that while many sectors across the global economy continue to experience negative pandemic-induced challenges, farmland remained a reliable asset

Farmland investment manager FarmTogether released a new study that illustrates farmland’s historical resilience in the face of financial turbulence over the last three decades, demonstrated by the asset’s stable performance since the onset of the COVID-19 pandemic and subsequent market turbulence. The study, titled ‘Farmland: A Historically Stable Asset During Uncertain Times,’ examines farmland’s performance in the context of several major asset classes, including equities, bonds, commercial real estate, and REITs. 

“The last few years, even weeks, have been challenging to navigate from a portfolio management perspective,” said David Chan, Chief Client Officer and Head of Business Development at FarmTogether. “This study comes at a critical moment for those searching for uncorrelated, defensible alternatives for real capital preservation.”

The study found that while many sectors across the global economy continue to experience negative pandemic-induced challenges, farmland remained a reliable asset throughout this tumultuous period. Despite early headwinds led by supply chain disruptions and reduced demand for certain products, farmland investments experienced net positive growth each year over the last three years, outpacing the performance of each asset analysed in the study. 

The study attributes farmland’s performance throughout this period, and several decades prior, to the asset’s historically low volatility, low correlation with traditional assets, and rising cropland values, which are sitting at a record $5,050 per acre in the US. The study additionally reverberates farmland’s historical role as a hedge against rising prices during inflationary environments; since the onset of the pandemic, farmland returns have had a 0.97 correlation with the Consumer Price Index (CPI).

The study found that while many sectors

AgroPolicy, India, Supply Chain, Sustainability, Trade, Vegetables

7.5 metric tons of organic bird’s eye chilli will be flagged off from the state

Mizoram will export bird’s eye chilli a typical organic chilli from the state to the United States (US). Bird’s eye chilli is a typical Mizo organic chilli and the first time it will export to the US, C. Lalrinsanga, agriculture minister from Mizoram informed this recently.

The chilli will be sent soon to the US and 7.5 metric tons of organic bird’s eye chilli will be flagged off from the state. Mizoram has obtained geographical identification (GI) for the bird’s eye chilli or Mizo chilli. The chilli has successfully passed an organic confirmation test in Bangalore recently. The state is also taking efforts to improve jhum cultivation. Fostering Climate Resilient Upland Farming System in the Northeast (FOCUS) is being implemented in six districts under an Externally Aided Project (EAP) for the improvement of jhum cultivation. Mizoram will also implement a three-tier Integrated Farming System (IFS) in 20 villages to improve jhum or slash-and-burn cultivation. 

7.5 metric tons of organic bird’s eye

Agro chems – Pesticides, Agrotech, Inputs, North America

Kyro herbicide will help control troublesome weeds, including glyphosate- and/or ALS-resistant weeds

US based Corteva Agriscience has announced the launch of a new postemergence corn herbicide. Kyro herbicide will be the first product on the market to combine the active ingredients acetochlor, topramezone and clopyralid into one premix. The U.S. Environmental Protection Agency (EPA) has approved registration of Kyro herbicide — and the new solution will be available for U.S. corn farmers for the 2023 growing season, pending individual state registrations.

 Kelly White, U.S. product manager, corn herbicides, Corteva Agriscience said, “Kyro herbicide is a unique offering for the market that will help control troublesome weeds, including glyphosate- and/or ALS-resistant weeds. By using Kyro herbicide, corn farmers can help keep their fields clean late into the season for optimum yield potential — and prevent and mitigate weed resistance.”

Powerful postemergence weed control. Kyro herbicide combines three effective modes of action for control of more than 65 of the most difficult, resistant weed species and can provide extended residual control at higher use rates. Kyro herbicide provides excellent control of waterhemp, Palmer amaranth, giant ragweed, marestail, barnyard grass, fall panicum and woolly cupgrass.

Kyro herbicide is formulated with an encapsulated acetochlor for excellent crop safety. Less crop response helps keep corn plants healthy until harvest for better yield potential.

“At Corteva Agriscience, it’s our mission to continually work to provide our customers with the solutions they need to overcome the challenges they face in the field. We are committed to offering farmers a full pipeline of innovative products. That’s why we decided to launch two game-changing herbicides in one year,” White said. “This announcement for Kyro herbicide comes just a few months after we received U.S. EPA registration of Resicore XL herbicide. These two solutions can work powerfully together in a two-pass program with Resicore XL herbicide applied preemergence and Kyro herbicide applied post to help ensure clean cornfields through crop canopy for maximum yield potential.”

Kyro herbicide will help control troublesome weeds,

AgroPolicy, Dairy, Live Stock, Trade

Indian mangoes and pomegranate get market access in US

In pursuant to the 12th India – USA TPF meeting held on November 23, 2021 Department of Agriculture and farmer’s welfare (DAC&FW) and the US Department of Agriculture (USDA) have signed a framework agreement for implementing the 2 Vs 2 Agri market access issues i.e inspection/oversight transfer for Indian mangoes and pomegranate and market access for pomegranate arils from India and market access for US cherries and US Alfalfa hay.

Mango and pomegranate exports will start from January – February 2022 and pomegranate aril exports from April 2022. Exports of Alfalfa hay and cherries from the US will begin in April 2022.

In addition, based on the ministerial discussions, the Department of Animal Husbandry and Dairying (DAHD) also conveyed its readiness to provide market access for US pork and requested the US side to share a signed copy of the final sanitary certificate for finalising the same.

Indian mangoes and pomegranate get market access