Food Import – Dinamika Trade http://dinamikatrade.com/ Wed, 18 May 2022 02:00:10 +0000 en-US hourly 1 https://wordpress.org/?v=5.9.3 https://dinamikatrade.com/wp-content/uploads/2021/06/icon.png Food Import – Dinamika Trade http://dinamikatrade.com/ 32 32 UK businesses warn Boris Johnson against ‘cost of living’ tariff cuts – POLITICO https://dinamikatrade.com/uk-businesses-warn-boris-johnson-against-cost-of-living-tariff-cuts-politico/ Wed, 18 May 2022 02:00:10 +0000 https://dinamikatrade.com/uk-businesses-warn-boris-johnson-against-cost-of-living-tariff-cuts-politico/ LONDON — Business groups are warning Boris Johnson’s government against cutting food import tariffs in a bid to ease the UK’s cost of living crisis. Two trade associations have argued such a move would only have a ‘negligible’ impact on soaring household bills while reducing Britain’s bargaining power in trade deals and potentially jeopardizing food […]]]>

LONDON — Business groups are warning Boris Johnson’s government against cutting food import tariffs in a bid to ease the UK’s cost of living crisis.

Two trade associations have argued such a move would only have a ‘negligible’ impact on soaring household bills while reducing Britain’s bargaining power in trade deals and potentially jeopardizing food supplies .

Others have warned that the idea – which would only cover non-UK made products – could have repercussions for the goods Britons produce and could open the floodgates to wider and damaging tariff cuts.

Downing Street has instructed the Department for International Trade to assess the impact of cutting basic duties – i.e. duties on goods from countries that do not have trade agreements with the Kingdom UK – in a context of galloping inflation and pressure on household budgets.

But business groups have urged Brexit Opportunities Minister Jacob Rees-Mogg, who first proposed the idea and championed it to Chancellor Rishi Sunak, to resign.

Dominic Goudie, head of international trade at the Food and Drink Federation (FDF), said a unilateral tariff cut at this time “would do little to address the cost of living issues, but it would seriously hurt ambitious UK trade negotiations and could have adverse effects”. for UK food safety.

He said tariff adjustments to the base rate should be considered in the long term and noted that the FDF planned to come forward with its own proposals. But businesses fear a knee-jerk move could have a dangerous impact on UK imports at a time when food suppliers are under pressure.

Other experts with experience in government and academia are split on whether cutting base fares would affect Britain’s bargaining power. But most agree that it would have minimal impact on prices. There is also a split within the UK cabinet over whether the proposal should go ahead, with Rees-Mogg in favor and International Trade Secretary Anne-Marie Trevelyan skeptical, as she made clear in a recent committee hearing.

Nick von Westenholz, trade manager at the National Farmers Union, said tariff reductions on goods not produced in the UK could help consumers, but could mean that “indigenous food products are crowded out by food imports that we cannot produce here”. If imports of oranges become cheaper and this affects in-store prices, for example, consumers might choose them over other fruits grown at home.

But von Westenholz is also worried about a possible slippery slope towards unilateral tariff cuts on UK-produced goods.

“This would not only put enormous pressure on UK farmers and food producers in an already difficult trading environment,” he explained, “it would also deny the opportunity to gain overseas market access for UK producers in trade negotiations as a direct quid-pro-quo for access to the hugely valuable UK food market.

Rees-Mogg thinks mutual free trade is a better choice, but unilateral free trade is a good second option, according to a government official. However, a reduction in food tariffs should end up being a short-term measure, which could appease some critics.

“Having fun with prices”

Elsewhere, the British Retail Consortium (BRC) and the Federation of Small Businesses (FSB) said the move would have too little impact on consumer prices to be worth pursuing.

Indeed, around three-quarters of food sold in the UK is made or produced at home. Around 80% of UK food imports come from the EU and are therefore duty free. Of the remaining imports, a good portion will also be duty free under existing trade agreements or preferential access agreements for developing countries.

This means that, overall, only a tiny percentage of food sold in the UK could be eligible for an import tariff reduction, and it is not clear that any reduction would affect the workshop in first place.

“Disagreeing with tariffs in this regard would not make much difference to food prices,” said BRC’s Andrew Opie, adding that the price changes would be “negligible”.

The FSB’s Craig Beaumont said cutting import tariffs was a “simplistic idea” and price changes, at best, could take too long to help deal with the immediate crisis. He urged the government to consider tax cuts and change spending plans instead. The Department for International Trade declined to comment.

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Food inflation soars, but dal prices stay on the sidelines https://dinamikatrade.com/food-inflation-soars-but-dal-prices-stay-on-the-sidelines/ Mon, 16 May 2022 01:40:58 +0000 https://dinamikatrade.com/food-inflation-soars-but-dal-prices-stay-on-the-sidelines/ Roti (wheat) is becoming increasingly expensive due to soaring world prices and a heatwave-affected domestic harvest – but this is not the case for dal (pulses), whose retail prices are lower than a year ago despite the rise in food inflation. One of the main reasons for this, according to dal millers and traders, is […]]]>

Roti (wheat) is becoming increasingly expensive due to soaring world prices and a heatwave-affected domestic harvest – but this is not the case for dal (pulses), whose retail prices are lower than a year ago despite the rise in food inflation.

One of the main reasons for this, according to dal millers and traders, is the fear of government crackdown on any activity remotely reminiscent of speculative hoarding. They specifically cite an order issued last July by the Department of Consumer Affairs (DCA), which imposed storage limits on all pulses except moong (green gram).

Ironically, this came after the Union Government enacted the Essential Commodities (Amendment) Act, one of the Three Agricultural Reform Acts, in September 2020.

“It was totally unexpected and had a chilling effect on trade. Nobody wants to take any risk after this,” said a prominent pulses trader in Indore.

The decree of July 2 imposed storage limits (“on all pulses combined, except moong”) of 200 tons for wholesalers, 5 tons for retailers and the production of the last three months or 25% of the annual installed capacity. (whichever is greater) for suckers .

On July 19, these limits were raised to 500 tonnes for wholesalers and the last six months’ production or 50% of annual installed capacity (whichever is greater) for millers. In addition, importers were exempt from any limits, but had to declare their stocks of pulses on the DCA portal.

“The stock limits were in effect until October 31 and could expire. Also, harvesting and market arrivals of kharif (post-monsoon) pulses had started,” the trader pointed out. But there is no guarantee that they will not be reimposed. “The limits were imposed in July 2021, when the farm laws were still there, despite being suspended by the Supreme Court. The actual repeal did not happen until November 2021. Today the laws themselves do not exist and nothing, even on paper, prevents the government from bringing back the stock limits,” he added.

Speculative trading normally takes place when production is low and traders begin to accumulate inventory, sensing opportunities for higher prices in the months ahead. There were enough opportunities this time due to not too big kharif harvest. A prolonged dry spell in July affected both moong and urad (black gram) production. In tur/arhar (pigeon pea), damage was caused by excessive rain at harvest time.

But fear of punitive action meant no one even tried to play the market.

This is confirmed by DCA data. The average (most quoted) modal retail price of chana dal for all of India was 70 rupees per kg on Friday, down from 75 rupees a year ago. Prices also fell for tur (from Rs 110 to Rs 98.5), urad (Rs 107.5 to Rs 98) and moong (Rs 105 to Rs 95), while they only increased than for the masur or the coral lens (Rs 82 to Rs 92.5).

Nitin Kalantari, a dal factory owner and trader from Latur in Maharashtra, also attributed the low, if not negative, pulse inflation to the liberal import policy of the Union government. The total effective duty on masur imported from Canada and Australia was reduced from 33% to 11% on July 26 — and zero on February 12.

The government on March 29 also announced that it would allow imports of tur and urad dal at zero duty until March 31, 2023.
Free imports, coupled with a latent fear that the government will reimpose stock limits at any time, have at least ensured that there is little to no inflation in the dal – even if it is not the roti.

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My Say: Lessons from Sri Lanka on Food Security Management https://dinamikatrade.com/my-say-lessons-from-sri-lanka-on-food-security-management/ Sat, 14 May 2022 03:30:00 +0000 https://dinamikatrade.com/my-say-lessons-from-sri-lanka-on-food-security-management/ Sri Lanka’s economic crisis had been brewing for some time before the recent social unrest broke out. The writing was on the wall, but it was either misunderstood or underestimated. Either way, the impact has been devastating and can take years to undo. Moreover, the situation has worsened, going from an economic crisis to a […]]]>

Sri Lanka’s economic crisis had been brewing for some time before the recent social unrest broke out. The writing was on the wall, but it was either misunderstood or underestimated. Either way, the impact has been devastating and can take years to undo. Moreover, the situation has worsened, going from an economic crisis to a humanitarian crisis.

The anatomy of an economic collapse and social disaster is made up of these elements: shortages of food, fuel and medicine, a collapsing currency and long power cuts, as poverty deepens and the inflation is soaring at a record pace. The price of rice has increased by 93%, chicken and lentils by 55% and gasoline by 50%.

This tragedy is a good lesson for Malaysia. Some of the structural symptoms experienced by Sri Lanka bear an uncanny resemblance to those of that country. So, unless they are resolved, Malaysia could follow a similar path.

These are the main takeaways for Malaysia. First, food security operates in a dynamic system that includes highly interconnected elements operating in a feedback loop. Elements include politics, trade, economic policy, natural resources, climate change, governance and external factors.

The UN has encapsulated this web of interactions in the concept of “food systems” which, it warns, are prone to collapse. This has been proven in Sri Lanka due to the country’s high debt ratio (110% of GDP) and very low foreign exchange reserves ($2.3 billion, a reduction of 70%), making food imports and unaffordable fuel. Rising commodity prices have aggravated the situation. The correlation between these elements and food security is largely underestimated.

The impact of external factors is equally damaging, causing a cascading effect. This was particularly seen during the pandemic, which caused supply chain disruptions and the drying up of revenue from the tourism sector, which accounted for around 10% of the country’s GDP. Additionally, the pandemic has disrupted remittances from foreign workers to their families.

The Russian-Ukrainian conflict has added to the suffering, leading to soaring oil and gas prices, and therefore transport and energy costs for consumers and manufacturers. Due to these factors, the real income of consumers has decreased significantly.

Second, economic mismanagement by the Sri Lankan government has accentuated the slow growth of the overall economy, including food production. The Asian Development Bank had warned the country for its two deficits – budget and current account – i.e. the country’s national expenditure exceeded its national income and its production of tradable goods and services was insufficient. to pay for imports. The twin deficits limited the scope of the budget to cope with the negative impact of the pandemic and the low level of foreign exchange reserves.

In addition, it is said that Sri Lanka did not seek assistance from the International Monetary Fund earlier, which could have prevented the crisis from spreading to its current magnitude. Infrastructure megaprojects built on borrowing from China not only drained scarce domestic resources, but also led to a currency crisis and long-term indebtedness to China (which accounted for 10% of Sri Lanka’s external debt). Lanka). Malaysia is also indebted to China to the tune of RM44 billion.

Third, abrupt political changes shock any ecosystem. The worst threats to Sri Lanka’s food security have been its government’s overnight policy shift to organic farming and a total ban on imports of fossil fuel-based fertilizers and agrochemicals. This hasty policy change caused a significant drop in their staple food – rice – by 14% due to a drop in average yield from 3.38 tonnes per hectare to 2.92 tonnes per hectare. This reduction has pushed the country to import from India, Bangladesh and Myanmar, resulting in abnormally high transport costs, ironically higher than the cost of importing fertilizers and chemicals. The high cost of food safety outweighs the good intention of promoting organic farming.

Fourth, this hasty decision-making reveals the Sri Lankan government’s misjudgment of the importance of evidence-based policy decisions. Local experiences show that the impact of organic fertilizers on soil fertility takes time to manifest and varies according to geophysical conditions. Therefore, there is a need to engage with various stakeholders and conduct policy simulation studies on the impact of organic inputs on yield, farmer incomes and the country’s rice supply. A number of policy scenarios need to be simulated to measure the impact on different food crops and industry players, including the public sector, and to estimate the gains and losses of such a policy.

Fifth, governance is at the heart of the crisis in Sri Lanka’s economic institutions. The ruling political party in the country is dominated by the Rajapaksa dynasty led by President Gotabaya Rajapaksa and backed by his younger brother and finance minister Basil Rajapaksa.

Malaysia’s situation was even worse when the portfolios of Prime Minister and Minister of Finance were held by the same person. This was true both under the prime ministership of Tun Dr Mahathir Mohamad and Datuk Seri Najib Razak. The dual nomination gave rise to the world record for kleptocratic crimes at 1MDB, as well as other forms of corruption and leaks.

In Sri Lanka, an estimated 40 members of the president’s family hold government positions outside the cabinet, involving the third and fourth generations of the Rajapaksa clan. It has been estimated that around 70% of government procurement results from corruption. The involvement of the Rajapaksa clan in these acts of corruption is difficult to rule out.

Lavish investments in megaprojects and leaks in development funds have left the agriculture and food sectors unchecked. This is particularly seen in agricultural institutions such as extension services, credit facilities, cooperatives, agricultural infrastructure, and agricultural technology adoption and innovations.

It is equally important to pay attention to the welfare and livelihoods of farmers, such as primary health care, education and childcare programmes. A similar observation applies to Malaysia, where 90% of padi farmers and smallholders belong to the B40 category (40% lower income group).

In short, Malaysia’s economic scenario may not be as dire as Sri Lanka’s. But some of the structural weaknesses, particularly in governance, are just as serious. From a systems thinking perspective, these poor macroeconomic factors and poor economic management partly explain the poor performance of our food sector. But what can go wrong will go wrong, according to Murphy’s Law. However, the crisis in Sri Lanka shows us what to avoid to ensure a sustainable and resilient economy, and therefore food security, in the future.


Professor Datin Paduka Fatimah Mohamed Arshad is a researcher at the Laboratory for Agriculture and Food Policy Studies at Universiti Putra Malaysia

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Low French rainfall adds another cloud to the global food market https://dinamikatrade.com/low-french-rainfall-adds-another-cloud-to-the-global-food-market/ Thu, 12 May 2022 09:36:14 +0000 https://dinamikatrade.com/low-french-rainfall-adds-another-cloud-to-the-global-food-market/ Published on: 05/12/2022 – 11:36Amended: 05/12/2022 – 11:35 Sully-sur-Loire (France) (AFP) – French farmer Robin Lachaux worries about his wheat. In normal years, it flowers and swells in May thanks to regular spring rains, but this year the hot and dry conditions are likely to slow its progress. “If we don’t water it today, we […]]]>

Published on: Amended:

Sully-sur-Loire (France) (AFP) – French farmer Robin Lachaux worries about his wheat. In normal years, it flowers and swells in May thanks to regular spring rains, but this year the hot and dry conditions are likely to slow its progress.

“If we don’t water it today, we will lose 50% of our production,” the young farmer in cap and orange sweatshirt from Sully-sur-Loire, in central France, told AFP. .

“We don’t normally water at this time of year, but the dry spells are coming earlier and earlier,” he added as he positioned his pressure hoses and irrigation equipment.

France is Europe’s agricultural powerhouse, the largest grain producer in the 27-nation bloc and the world’s fourth or fifth largest exporter of wheat.

Its annual production influences world prices which are already at record levels because the war in Ukraine seems set to wipe out part of the country’s production, raising fears of a hunger crisis in the world.

On Monday, the French Ministry of Agriculture warned of the impact of an abnormally hot and dry period which “will have an impact on cereal production” in France following below-average rainfall over the winter period.

Besides wheat, other winter-sown crops such as barley are at a key development stage in May, while corn and sunflower production during the summer could also be affected.

“There is not a region that is not affected,” Christiane Lambert, head of the French farmers’ union FNSEA, told AFP.

“With each passing day, we see the ground cracking more… if it continues like this, those who can irrigate will be fine, but the rest will have dramatic drops in production.”

France’s national meteorological service said the country was experiencing a heat wave “remarkable in its timing, duration and geographical distribution”, with a 20% drop in rainfall between September 2021 and April 2022.

– Records –

Global food prices hit a record high in March following Russia’s invasion of Ukraine, which accounted for 20% of global wheat and maize exports over the past three years, according to the United Nations Food and Agriculture Organization. food and agriculture.

Ukrainian ports are blocked by Russian navy vessels and French data analysis company Kayrrosa recently calculated that the area sown to wheat has been reduced by a third this year due to the conflict, according to satellite images.

Ukrainian farmers, like this one seen walking past a Russian missile near Kharkiv, have reduced their wheat plantings this year. SERGEY BOBOK AFP

According to government and industry forecasts, production could fall by 50% this year, with some farmers abandoning their fields to join the army.

Tensions in global markets have led NGOs and the United Nations to warn that hunger or even starvation could hit vulnerable import-dependent countries in Africa and the Middle East.

With major U.S. wheat-producing states such as Kansas and Oklahoma also suffering from drought conditions, weak French yields could be particularly significant in 2022.

“We already had very nervous markets. This adds tension,” Nathan Cordier, grain market analyst at agricultural consultancy Agritel, told AFP. “France is one of the major players in the wheat market and people are counting on it.

“The question is whether the export volumes will be sufficient.”

– Hunger –

Current wheat prices in Europe are at a record high of 400 euros per tonne ($420), up from an already high level of around 260 euros per tonne at the start of the year before the invasion of Ukraine by the Russia.

High prices are expected to further boost plantings in the United States, and the FAO predicts that higher yields in Canada and Russia, as well as Pakistan and India could help offset below-average harvests in Western Europe.

Some of the recent price increases are due to short-term shortages caused by the sudden halt in supplies from Ukraine, as well as some farmers holding back from selling their produce in anticipation of higher prices in the future. .

“As the prices are very high, with wheat at more than 400 euros a ton for delivery in September, they are waiting,” said Edouard de Saint-Denis, commodity trader at Plantureux et associés, a French brokerage firm.

But as traders and farmers analyze weather forecasts and plan their business strategies, aid groups are warning that lives are at risk in some of the world’s most vulnerable places, like war-torn Yemen or the countries in the arid Sahel region of North Africa.

“According to our research, the rise in food prices caused by Russia’s invasion of Ukraine means that some local communities in developing countries are already spending more than triple what they previously paid on food. which forces families to skip meals and take their children out of school,” Teresa Anderson of British charity ActionAid told AFP.

A prolonged drought in France could worsen the situation.

“It would aggravate hunger, poverty and indebtedness for low-income families in Africa, Asia and Latin America, further worsening an already dire situation,” she said.

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EXCLUSIVE Malaysia could halve export tax on palm oil amid global supply crisis https://dinamikatrade.com/exclusive-malaysia-could-halve-export-tax-on-palm-oil-amid-global-supply-crisis/ Tue, 10 May 2022 09:48:00 +0000 https://dinamikatrade.com/exclusive-malaysia-could-halve-export-tax-on-palm-oil-amid-global-supply-crisis/ A worker unloads bunches of palm oil fruits from a truck inside a palm oil mill in Bahau, Negeri Sembilan, Malaysia January 30, 2019. REUTERS/Lai Seng Sin Join now for FREE unlimited access to Reuters.com Register KUALA LUMPUR, May 10 (Reuters) – Malaysia’s commodity ministry has proposed to halve the export tax on palm oil […]]]>

A worker unloads bunches of palm oil fruits from a truck inside a palm oil mill in Bahau, Negeri Sembilan, Malaysia January 30, 2019. REUTERS/Lai Seng Sin

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KUALA LUMPUR, May 10 (Reuters) – Malaysia’s commodity ministry has proposed to halve the export tax on palm oil to help fill a global shortage of edible oil and boost market share of the world’s second largest producer of palm oil.

Plantation Industries and Raw Materials Minister Zuraida Kamaruddin said in an interview with Reuters on Tuesday that her ministry had proposed the cut to the Finance Ministry, which has set up a committee to review the details.

Malaysia could reduce the tax, likely a temporary measure, to 4%-6% from the current 8%, Zuraida said.

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A decision could be made as early as June, she said.

Malaysia is seeking to increase its share of the edible oil market after Russia’s invasion of Ukraine disrupted shipments of sunflower oil and Indonesia’s decision to ban sunflower oil exports palm further tightened global supply.

“In these times of crisis, we can probably relax a bit so that more palm oil can be exported,” Zuraida said.

The proposal also called on the finance ministry to speed up tax cuts for state-linked palm oil producer FGV Holdings (FGVH.KL) – Malaysia’s largest – and companies with oleochemical production. overseas, she said.

Malaysia will also slow implementation of its B30 biodiesel mandate, which requires that some of the country’s biodiesel be blended with 30% palm oil, to prioritize supply to global and domestic food industries. , she said.

“We have to prioritize to get food to the world first,” Zuraida said.

Palm oil – used in everything from cakes to detergents – accounts for almost 60% of global vegetable oil shipments and the absence of Indonesia’s top producer has rattled the market.

The benchmark palm oil contract fell 2.3% in Tuesday morning session, paring some losses after Reuters reported on a possible export tax cut.

Zuraida told Reuters that importing countries had asked Malaysia to reduce its export taxes.

“They think it’s too high because of the high costs along the supply chain, because of the price of edible oil,” she said.

Crude palm oil futures have jumped around 35% so far this year to historic highs, further aggravating global food inflation.

The Food and Agriculture Organization of the United Nations has warned that food prices, which hit a record high in March, could rise by up to 20% due to the Russian-Ukrainian war, increasing the risk of increased malnutrition. learn more L5N2VE39W

Zuraida said Indian, Iranian and Bangladeshi buyers were offering to trade agricultural products like rice, wheat, fruits and potatoes for Malaysian palm oil.

Malaysia’s production has been under severe strain for more than two years due to a severe labor shortage following coronavirus border curbs that halted the entry of migrant workers.

With travel restrictions now eased, foreign workers will start arriving in mid-May, Zuraida told Reuters ahead of his visit to the United States later this week.

U.S. Customs and Border Protection has imposed import bans on two Malaysian palm oil producers – FGV and Sime Darby Plantation (SIPL.KL) – over allegations that they use forced labor in the production process.

Both companies have commissioned independent audits to examine the allegations and said they would work with US authorities.

Zuraida said during her visit she will ask US Customs to detail their findings on the alleged labor abuse and give Malaysian companies time to resolve the issue before imposing sanctions.

“We’re not ruling out the possibility of this happening, but you should give us time to rectify,” she said.

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Reporting by Mei Mei Chu and A. Ananthalakshmi; Editing by Tom Hogue and Susan Fenton

Our standards: The Thomson Reuters Trust Principles.

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Further PSDP cut likely, says business leader – Business & Finance https://dinamikatrade.com/further-psdp-cut-likely-says-business-leader-business-finance/ Sun, 08 May 2022 01:32:57 +0000 https://dinamikatrade.com/further-psdp-cut-likely-says-business-leader-business-finance/ KARACHI: Chairman of National Business Group Pakistan and Chairman of Pakistan Businessmen and Intellectuals Forum Mian Zahid Hussain has said that the Pakistani government Tehreek-e-Insaf (PTI) has cut funding for the Public Sector Development Program (PSDP) from Rs 900 billion to Rs 600 billion, but new cuts are necessary because oil subsidies weigh too heavily […]]]>

KARACHI: Chairman of National Business Group Pakistan and Chairman of Pakistan Businessmen and Intellectuals Forum Mian Zahid Hussain has said that the Pakistani government Tehreek-e-Insaf (PTI) has cut funding for the Public Sector Development Program (PSDP) from Rs 900 billion to Rs 600 billion, but new cuts are necessary because oil subsidies weigh too heavily on the Treasury.

The state of the economy is bad and without tough and unpopular decisions, it will be impossible to revive the ailing economy, he said.

He was of the view that the current broad-based government represents 70% of the country and that all political parties must agree on an economic recovery program, followed by the closure or sale of all loss-making state enterprises.

Mian Zahid said the dysfunctional energy sector deserved special attention as it held the national economy hostage by incurring losses of billions of rupees.

He said that the tax system is flawed and because of this the economy is suffocating. Punishing taxpayers and rewarding tax evaders with amnesty programs is wrong.

Such programs are strongly contested by international organizations, but they are not stopped, which gives negative signals.

Calling the tax system “unbalanced,” he said the tax burden on the industrial sector is too heavy while the agricultural sector, which is almost equal to the industrial sector in size, enjoys undue advantages.

One percent of landowners in the country occupy 22 percent of its land, from which they earn at least 800 billion rupees a year. However, they are only taxed around Rs 2 billion, which is tantamount to playing with the integrity of the country, Mian Zahid said.

The income of large landowners continues to increase due to the sharp rise in the price of agricultural commodities, but the farmer is still in bad shape; the agricultural sector cannot develop without making farmers prosper.

He said the country would have no future if all central and provincial governments were not interested in taxing farm income.

The Arab countries have developed agriculture by greening the deserts and Pakistan can do the same, but this is not even envisaged. The food import bill has risen sharply to unsustainable levels, he added.

Copyright Business Recorder, 2022

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Explained: Agricultural exports are at a record high, but so are imports https://dinamikatrade.com/explained-agricultural-exports-are-at-a-record-high-but-so-are-imports/ Thu, 05 May 2022 16:35:18 +0000 https://dinamikatrade.com/explained-agricultural-exports-are-at-a-record-high-but-so-are-imports/ India’s agricultural exports surpassed $50 billion in the fiscal year ending March 31, 2022. Although valued at $50.3 billion, imports are no less attractive, hitting a record high of $32.4 billion. The table below shows the country’s agricultural trade trends over the past 10 years. The previous export record was $43.3 billion in 2013-2014. That […]]]>

India’s agricultural exports surpassed $50 billion in the fiscal year ending March 31, 2022. Although valued at $50.3 billion, imports are no less attractive, hitting a record high of $32.4 billion.

The table below shows the country’s agricultural trade trends over the past 10 years. The previous export record was $43.3 billion in 2013-2014. That year, by the way, also saw imports of just $15.5 billion, resulting in an agricultural trade surplus of $27.7 billion.

The following years were marked by a decline in exports alongside an increase in imports, which led to a reduction in the surplus to $8.1 billion in 2016-2017. Exports have been slow to recover, to $41.9 billion in 2020-21 and $50.3 billion in 2021-22. But with soaring imports, the agricultural trade surplus of $17.8 billion for 2021-22 was well below 2012-13 and 2013-14 levels.

Impact of world prices

Chart 1 shows how closely India’s agricultural trade performance is tied to international commodity prices. The Food and Agriculture Organization of the United Nations (FAO) food price index – having a base value of 100 for the period 2014-2016 – averaged 122.5 points in 2012- 2013 and 119.1 in 2013-2014. These were the years when India’s agricultural exports reached $42-43 billion. The collapse of the index to 90 points in 2015-2016 was accompanied by a fall in exports to less than 33 billion dollars. The last two years, particularly after October 2020, have seen a further spike in global agricultural commodity prices, with the lifting of Covid-induced lockdowns and also the aftermath of massive liquidity injections by central banks after the pandemic. The return of demand, reflected in the FAO index averaging 102.5 points in 2020-21 and 133 in 2021-22, has helped Indian agricultural exports to rebound and surpass $50 billion.

In general, high international prices – such as from late 2010 to 2014 and, more recently, from October 2020 – are favorable for exports of agricultural products. There is an almost unambiguous relationship between the FAO index and India’s agricultural exports. High world prices also tend to benefit farmers, both by bringing their achievements closer to export parity levels and by making imports more expensive. However, 2021-22 turned out to be different, seeing an increase in exports as well as imports – which was not the case in 2012-13 and 2013-14.

Commercial composition

Tables 1 and 2 show India’s top agricultural export and import commodities with individual values ​​exceeding $1 billion in 2021-2022, based on data from the Department of Commerce.

At the top of the list of exports are marine products, the value of which has steadily increased, from just over $5 billion in 2013-2014 to $5.9 billion in 2016-2017, $6.7 billion in 2019-20 and $7.8 billion in 2021-2022.

But the real increase came from rice (especially non-basmati), sugar and wheat, whose exports broke all previous records. 2021-22 has been a remarkable year for rice and wheat.

Not only did the country ship some 21 million tonnes (mt) of rice (17 mt non-basmati and 4 mt basmati) and 7.8 mt of wheat, but the removal of the two grains through the public distribution system also reached unprecedented levels of 55.1 t and 50.6 t, respectively.

The fact that India achieved its highest ever exports as well as its domestic sales of subsidized/free grains is proof of the bumper crops produced by its farmers.

By contrast, many of the items that contributed to the previous export boom have stagnated or even declined in the recent period.

These include basmati rice ($4.9 billion in 2013-14 to $3.5 billion in 2021-22), buffalo meat ($4.8 billion in 2014-15-3, $3 billion), cakes ($3 billion in 2012-13 to $1 billion), guar gum ($3.9 billion in 2012-13 to $447 million) and raw cotton (4 $.3 billion in 2011-12 to $2.8 billion).

As for imports, the 2021-22 peak was largely due to vegetable oils.

Vegetable oil imports were worth $7.2 billion in 2013-2014, rising to $10.9 billion in 2016-2017 and $11.1 billion in 2020-21, before climbing to $19 billion. dollars in the fiscal year just ended.

Pulse imports were $2.2 billion in 2021-22, but down from a peak of $4.2 billion in 2016-17. Other important import products were fresh fruits (mainly almonds and apples), cashew nuts (mainly raw nuts for re-export after processing), spices and natural rubber.

In the field of spices, India happens to be both a major importer ($1.3 billion in 2021-2022) and an exporter ($3.9 billion).

Exports mainly include chilli, mint products and cumin. On the other hand, there has been an upward trend in imports of pepper, cardamom and other traditional spices from plantations in countries like Vietnam, Sri Lanka and Indonesia.

Outlook

The Russian invasion of Ukraine further boosted agricultural commodity markets, with the FAO Food Price Index hitting a new high of 159.3 points in March. This, based on past experience, should bode well for India’s agricultural exports. The country’s wheat and even corn exporters are expected to fill, at least in part, the void left by the two warring nations.

Optimism on this front has waned somewhat, however, following the severe heatwave that engulfed much of India from mid-March. Reports from the field suggest significant yield losses, especially for the wheat crop which was in the critical grain-filling stage when temperatures suddenly rose. With government procurement expected to more than halve from last year’s 43.3 tonnes, wheat export projections of over 10 tonnes may not materialize easily. The overall outlook for agricultural exports is largely dependent on the monsoon. Even when it comes to the stars of 2021-22, rice and wheat, public granaries are clearly not overflowing like during the pandemic period.

Meanwhile, there is little respite in sight on the biggest agricultural import product: edible oils. The war in Ukraine has dealt a severe blow to the sunflower oil trade. This, combined with drought in the soybean-growing region of South America and Indonesia’s ban on palm oil exports, is expected to keep world prices high for some time. And it’s not just edible oils. In 2021-2022, the country even imported $610 million worth of oilmeal, a product it exported heavily until recently.

Overall, 2022-23 could be tougher for India’s agricultural trade, despite high international prices that normally support exports while keeping imports in check. If the latest Reserve Bank of India actions and hawkish comments on food inflation are any indication, the political push for exports may also not be as intense.

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Viva Fresh continues to eat healthy with a donation of 15,403 lbs of fresh produce to the North Texas Food Bank https://dinamikatrade.com/viva-fresh-continues-to-eat-healthy-with-a-donation-of-15403-lbs-of-fresh-produce-to-the-north-texas-food-bank/ Tue, 03 May 2022 13:39:08 +0000 https://dinamikatrade.com/viva-fresh-continues-to-eat-healthy-with-a-donation-of-15403-lbs-of-fresh-produce-to-the-north-texas-food-bank/ Mission, Texas- the Texas International Commodity Association (TIPA) has partnered with the North Texas Food Bank of Plano, Texas to donate 15,403 pounds of fresh produce at the conclusion of the Viva Fresh Produce Expo on April 23, 2022. These fresh fruits and vegetables will provide approximately 12,800 meals to North Texas families in need. […]]]>

Mission, Texas- the Texas International Commodity Association (TIPA) has partnered with the North Texas Food Bank of Plano, Texas to donate 15,403 pounds of fresh produce at the conclusion of the Viva Fresh Produce Expo on April 23, 2022. These fresh fruits and vegetables will provide approximately 12,800 meals to North Texas families in need. .

The donation is made possible thanks to the 200 companies that exhibited a wide range of fresh produce at Viva Fresh Expo. The donation will provide fresh produce for food pantries and meal programs throughout North Texas.

The North Texas Food Bank served more than 125 million meals in 2021 and provides food assistance to families, children, seniors and disaster relief with the support of a food network of over of 400 pantries and food organizations in North Texas.

Dante Galeazzi, CEO of the Texas International Fresh Produce Association, said, “We grow, import, and ship healthy produce from Texas to all of North America, but nearly one million people in North Texas face to hunger and food insecurity and this number increases as you move. further into the state. Galeazzi continued, “Our organization and members of our industry work with food banks not just in Texas, but across the United States to provide invaluable access to fresh, hunger-relieving produce with nutrition, vitamins and a natural flavor.”

Today, more than 800,000 North Texans don’t know where their next meal will come from, including 300,000 children, giving the North Texas Food Bank service area the fourth-highest tier of children food insecure in the country.

“The North Texas Food Bank is proud to be a dedicated provider of food for those in need and this donation of fresh produce is a welcome gift that allows us to provide an incredible assortment of fruits and vegetables to hungry neighbors” , said Reid Ainsworth, director. food supply for the North Texas Food Bank. “Our mission to close the hunger gap in North Texas by providing access to nutritious food continues to be an exciting possibility thanks to the generosity of organizations like the Texas International Produce Association and their members.”

About Viva Fresh Produce Exhibition

The Viva Fresh Produce Expo was established in 2015 by the Texas International Produce Association (TIPA) to create meaningful networking and educational opportunities for its members while highlighting the importance of the Rio Grande Valley as a as an emerging trade corridor and production area. for healthy and nutritious fruits and vegetables available all year round. For more information, please visit www.vivafreshexpo.com.

About the Texas International Produce Association

Founded in 1942, the Texas International Produce Association (TIPA) promotes, defends, educates, and represents the nearly $10 billion worth of fresh produce grown in the state or calls Texas the United States’ premier arrival point for the North American distribution. For more information about TIPA, visit www.texipa.org or call 956-581-8632.

About the North Texas Food Bank:
The North Texas Food Bank (NTFB) is a leading nonprofit hunger relief organization that sources, packages and distributes food through a network of more than 200 partner agencies in 13 North Texas counties. The organization also provides food to children, seniors and families through various drop-shipping programs, including mobile pantries. In its last fiscal year, the NTFB provided access to more than 125 million nutritious meals, a 64% increase since the pandemic. In response to the ongoing hunger crisis, the organization launched a $500 million campaign, Nourish North Texas, to provide more food for today and hope for tomorrow by addressing the root causes of hunger. food insecurity. The North Texas Food Bank is named a 4-Star Outstanding Organization by Charity Navigator for its governance, integrity, and financial stability. NTFB is a member of Feeding America, the nation’s largest hunger relief organization.

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Inflation climbs to 29.8% in April https://dinamikatrade.com/inflation-climbs-to-29-8-in-april/ Sun, 01 May 2022 21:10:31 +0000 https://dinamikatrade.com/inflation-climbs-to-29-8-in-april/ Headline inflation in debt-ridden Sri Lanka jumped to nearly 30% in April from 18.7% recorded in March, official figures show, as the island nation grapples with its worst economic crisis in decades . Sri Lanka is in the throes of an economic crisis not seen since its independence from Britain in 1948. The crisis is […]]]>

Headline inflation in debt-ridden Sri Lanka jumped to nearly 30% in April from 18.7% recorded in March, official figures show, as the island nation grapples with its worst economic crisis in decades .

Sri Lanka is in the throes of an economic crisis not seen since its independence from Britain in 1948. The crisis is caused in part by a lack of foreign currency, which means the country cannot afford to pay the imports of staple foods and fuel, leading to acute shortages and very high prices.

Months of long blackouts and severe shortages of food, fuel and pharmaceuticals have sparked widespread protests calling for the government to resign.

According to data released by the government’s Bureau of Census and Statistics, headline inflation hit 29.8 percent in April, down from 18.7 percent in March.

Food inflation rose from 30.21% in March to 46.6% in April. Most food products recorded price increases.

The government’s decision to float the rupee in March after running out of dollars to defend a peg depreciated the currency by more than 60%. This had a spiraling effect on all the prices of basic necessities.

Sri Lanka needs at least $4 billion to overcome its growing economic difficulties, and talks with international institutions such as the World Bank as well as countries such as China and Japan for financial assistance are underway.

The country is short of foreign currency to import badly needed essential goods.

Last month, the Sri Lankan government said it would temporarily default on $35.5 billion in foreign debt as the pandemic and war in Ukraine made payments to foreign creditors impossible.

Sri Lanka has requested a bailout from the International Monetary Fund, which could take up to three months to arrive.

Commenting on the negotiations with the IMF, the finance ministry said the main areas discussed included the immediate need to restore supply chains for essential items including fuel, LPG and pharmaceuticals.

Other main points discussed include securing bridge financing in the interim period until IMF financing is finalized with an economic program, and implementing short- and medium-term policies to ensure macroeconomic stability and facilitate a greener, more inclusive, sustainable and stable growth in the country. .

In order to obtain an Expanded Financing Facility (EFF) to overcome the current difficult financial situation, a formal request has also been made for a Rapid Financing Instrument (RFI) for consideration by the IMF in order to obtain immediate financing for the country, which will be a bridge to the EFF.

Central Bank Governor Nandalal Weerasinghe said earlier in the week that the staff-level deal with the IMF could be reached within the next two months.

The Ministry of Finance has also noticed that registered importers are applying for the $1 billion Indian Line of Credit Facility from the Ministry’s Indian Credit Facility Coordinating Unit (ICFCU).

India has agreed to extend an additional $500 million line of credit to help Sri Lanka import fuel. New Delhi has also already agreed to defer $1.5 billion in import payments Sri Lanka has to make to the Asian Clearing Union.

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Taiwan to ban PVC in food packaging from July 2023: EPA https://dinamikatrade.com/taiwan-to-ban-pvc-in-food-packaging-from-july-2023-epa/ Sat, 30 Apr 2022 05:24:00 +0000 https://dinamikatrade.com/taiwan-to-ban-pvc-in-food-packaging-from-july-2023-epa/ Taipei, April 30 (CNA) The manufacture, import and sale of food packaging containing polyvinyl chloride (PVC) will be banned in Taiwan from July 2023, the Environmental Protection Administration announced on Friday. environment (EPA). Wang Yueh-bin (王嶽斌), executive director of the EPA Recycling Fund Management Board, explained that although it is less commonly used compared to […]]]>

Taipei, April 30 (CNA) The manufacture, import and sale of food packaging containing polyvinyl chloride (PVC) will be banned in Taiwan from July 2023, the Environmental Protection Administration announced on Friday. environment (EPA).

Wang Yueh-bin (王嶽斌), executive director of the EPA Recycling Fund Management Board, explained that although it is less commonly used compared to the past, plastic containers using PVC can still be found on some dairy product packaging.

PVC packaging can release plasticizers when used to store liquids, and overexposure to the substance can pose a cancer risk when liquids are consumed, Wang said, noting that this plastic material can also contain stabilizers which can also harm people’s health.

When burned, PVC containers can release dioxins and heavy metals, and although incinerators use filters to capture these materials, contaminated ash can still seep into the ground to pollute the environment, a he added.

Banning PVC packaging has already become an international standard, the EPA official said, citing South Korea and New Zealand as one of them.

With this new measure, Wang said Taiwan can expect to reduce some 79 metric tons of PVC food packaging every year.

According to the EPA, the ban on PVC packaging will fall under Section 21 of the Waste Disposal Act, which states that for items such as packaging or containers that pollute the environment, “the competent central authority may officially announce their prohibition of use and restriction of the manufacture, import and sale of such articles.”

When the ban goes into effect in July next year, the EPA said those caught selling PVC food packaging will be fined between NT$1,200 ($40.74) and $6. NT$000, while those who manufacture and import such items will be fined NT$60,000. Fine of NT$300,000.

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