Skip to main content

India May Push Exports via G2G Trade for Food Products

Worried over a slowdown in exports, the government is looking to use India’s good relations with other countries to push up exports through governmentto-government (G2G) trading arrangements for food products. The commerce department is exploring export of non-Basmati rice to the Philippines and Indonesia, and sugar to Egypt under this mechanism to boost exports that have been hit by rising protectionism globally and slowdown in trade.The department sent a proposal to Egypt last week to participate in its sugar tender.
“We want to increase total exports and G2G trade is one such arrangement. This was a common way to trade a decade ago and is being revived now because many countries float tenders to procure food,” said one official aware of the details. “We want to be part of that procurement.” The foreign trade policy for 2015-20 has set a target of dollar 900 billion for merchandise and services exports by 2020, which is seemingly unachievable due to muted growth of traditional exports such as gems and jewellery, farm and engineering, liquidity crunch stemming from the Goods and Services Tax, and global factors.
India’s exports rose 2.44% on year in February to dollar 26.7 billion and the total exports for the entire 2018-19 are expected to be around dollar 330 billion. Agriculture is one of the nine sectors that that the department has identified to take overall exports to dollar 400 billion in the next five years.“The talks are at a preliminary stage. We are exploring if Indian non-Basmati rice can be exported to Southeast Asian countries through our state-run trading firms,” said another official.
At present, the Philippines and Indonesia source rice under G2G tenders from Thailand and Vietnam. “Though a large part of their rice imports are done through private tenders, a small proportion of government tenders are floated and we are keen to participate in those,” the second official added. Iraq has expressed interest in procuring wheat and rice from India. Iraq, under its government food stuff procurement scheme, primarily procures wheat flour, rice, sugar, milk powder and edible oil. Iraq’s annual requirement of wheat is 4 million tonnes, of which 1 million tonne is imported. Of its 1 million tonne of rice requirement, one fourth was imported from Vietnam last year.
The Economic Times, 18th March 2019


Popular posts from this blog

SC order on RBI circular: More options for banks to tackle defaulting firms

Lenders also have the option of restructuring the loans Lenders to companies which are under stress could now have three options to deal with them if they default on loans: take a haircut as part of a one-time settlement, restructure the loans for a longer tenure as they did when corporate debt restructuring schemes were allowed, or go to the Insolvency and Bankruptcy Code (IBC) for redress. These changes in the options available to lenders come, according to PE funds and bank lawyers who are involved in the IBC process, in the wake of the Supreme Court on Tuesday setting aside the 12 February RBI circular, which allowed a 180-day window to banks to resolve a company default.But they can still find a resolution. According to a Reserve Bank of India circular, a loan becomes a non-performing asset when banks cannot find a way of recovering their money in 90 days. In short, banks still have a window to resolve the default. Lenders can take a haircut as part of a one -time settlement of du…

April GST collections at new high despite rate rationalisation in December

Goods and services tax (GST) collection touched a record high in April, exceeding Rs 1 trillion for the third time in four months. The mop-up was 10 per cent higher over the previous year. Gross collection for the month was Rs 1.13 trillion, said the finance ministry. Despite the recent rate rationalisation in December, a rise in collection was reported. Of the total collected, the CGST (central GST) contributed Rs 21,163 crore, the SGST (state GST) Rs 28,801 crore, the IGST (integrated GST) Rs 54,733 crore (including Rs 23,289 crore on import) and cess Rs 9,168 crore (including Rs 1,053 crore on import). After settlement of the IGST and the balance IGST in a 50:50 ratio between the Centre and states on a provisional basis, the CGST stood at Rs 47,533 crore and SGST at Rs 50,776 crore. The CGST target in the Union Budget for 2019-20 is Rs 6.1 trillion. “The April collection indicates the tax base is increasing gradually, with GST getting stabilised with measures such as e-way bills and…

Shrinking footprints of foreign banks in India

Shrinking footprints of foreign banks in India Foreign banks are increasingly shrinking their presence in India and are also becoming more conservative than private and public sector counterparts. While many of them have sold some of their businesses in India as part of their global strategy, some are trying to keep their core expertise intact. Others are branching out to newer areas to continue business momentum.For example, HSBC and Barclays Bank in India have got out of the retail business, whereas corporate-focused Standard Chartered Bank is now trying to increase its focus on retail “Building a retail franchise is a huge exercise and takes a long time. You cannot afford to lose it,” said Shashank Joshi, Bank of Tokyo-Mitsubishi UFJ’s India head.According to the Reserve Bank of India (RBI) data, foreign banks’ combined loan book shrunk nearly 10 per cent from Rs 3.78 trillion in fiscal 2015-16 to Rs 3.42 trillion last financial year. The banking industry, which includes foreign banks…