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Wahib Ali()
Indian Agricultural products
and Commodities
• Since Independence, India has made a lot of
progress in agriculture in terms of growth in output,
yields and area under crops.
• Green Revolution (food grains),
• White Revolution (milk),
• Yellow Revolution (oilseeds)
• Blue Revolution (aquaculture).
Indian Agricultural products
and Commodities
• Today, India is one of the largest producers of milk,
fruits, cashew nuts, coconuts and tea in the world.
• It is also well known for the production of wheat,
vegetables, sugar, fish, tobacco and rice.
• Certain types of agriculture such as horticulture,
organic farming, floriculture, genetic engineering,
packaging and food processing have the potential to
see a surge in revenues through exports.
• Past few years, the government has stressed on the
development of horticulture and floriculture by creating
vital infrastructure for cold storage, refrigerated
transportation, packaging, processing and quality
control.
Indian Agricultural products
and Commodities
• Agricultural Exports:
– The Government's special efforts to encourage export
of food grains in recent years through grant of World
Trade Organization or WTO compatible subsidies has
lead to India becoming one of the leading exporters of
food grains in the international market.
• Agricultural Imports:
– The share of agri-imports to total merchandise
imports in 2005-06 was 4.59 percent. Edible oil is the
single largest agricultural product imported into the
country and accounts for around two-thirds of the total
agricultural imports.
Indian Agricultural products
and Commodities
• Agricultural Exports:
– Exports during January, 2010 were valued at US
$14343 million (Rs. 65920 crore) which was 11.5
per cent higher in dollar terms (4.9 per cent in
Rupee terms) than the level of US $ 12869
million (Rs. 62844 crore) during January, 2009.
– Cumulative value of exports for the period April-
2009 to January-2010 was US $ 131930 million
(Rs 629224 crore) as against US $ 160438
million (Rs. 715764 crore) registering a negative
growth of 17.8 per cent in Dollar terms and 12.1
per cent in Rupee terms over the same period
last year.
Indian Agricultural products
and Commodities
• Agricultural Imports :
– Imports during January, 2010 were valued at US $
24705 million (Rs.113545 crore) representing a
growth of 35.5 per cent in dollar terms (27.6 per cent
in Rupee terms) over the level of imports valued at
US $ 18228 million ( Rs. 89015 crore) in January,
2009.
– Cumulative value of imports for the period April,
2009- January, 2010 was US $ 218534 million (Rs.
1041513 crore) as against US $ 272037 million (Rs.
1215214 crore) registering a negative growth of 19.7
per cent in Dollar terms and 14.3 per cent in Rupee
terms over the same period last year.
Commodities related to the
Agriculture and Food Industry.
• Animal & Animal Products
• Seeds
• Processed Foods
• Seeds
• Processed Foods
• Plant Products
• Dye & Colours
• Dry Fruits
• Cereals
• Beverages
• Animal Feed
• Bakery and Confectionery
• Animal & Animal Products
Products related to the
Agriculture and Food industry.
• Bakery & Confectionery Products
• Cattle Feed Supplements
• Child Care & Nursery Products
• Dry Fruits & Nuts
• Dyes & Color Additives
• Edible Oil & Allied Products
• Fertilizers
• Flowers, Floriculture & Dried Flowers
• Food Processing Plants, Machinery & Equipment
• Fresh, Dried, Preserved & Dehydrated Fruits and Vegetables
• Liquors, Mineral Water & Beverages
• Milk & Dairy Products
• Meat & Poultry Food
• Marine Food Supplies
Introduction
• India is one of the largest producer, consumer
and exporter of spices.
• India is reported to grow over 50 spices in
different parts of the country.
• The Spices Board, under the umbrella of Ministry
of Commerce and Industry, Government of India
is the apex body for promoting exports of Indian
spices.
• Its broad-based activities include formulation and
implementation of quality improvement systems,
research and development programmes,
imparting of education and training to farmers,
processors, packers and exporters on post
harvest handling, etc.
Indian Spices
• Indian spices include a variety of spice and
herbs grown across the Indian subcontinent
(south asia). With different climates in different
parts of the country, India produces a variety of
spices, many of which are native to the
Subcontinent, while others were imported from
similar climates and have since been cultivated
locally for centuries.
Indian Spices
Asafoetida Garlic
Bay Leaves Ginger
Bishop's weed Hyssop Juniper berry
Cardamom (Large) Kokam
Cardamom (Small) Mace
Cassia Mint
Celery
Chilli Mustard
Cinnamon Nutmeg
Cloves Pepper Long
Coriander Pepper
Cumin Pomegranate
Curry Leaf Sweet Flag
Dill Turmeric
Fennel
Fenugreek Yellow Mustard
Indian Spices
• The country today produces a wide range of
spices. These can broadly be divided into five
categories viz.
• Major Spices: black pepper, cardamoms (small
& large), chillies, ginger, and turmeric.
• Seed Spices: coriander, celery, fennel,
fenugreek, dill, aniseed, caraway, mustard,
poppy seed, parsley and ajwain.
• Tree spices: clove, nutmeg and mace,
cinnamon, tejpatta, kokm, allspice, cambodge,
tamarind, cassia, curry leaf, asafoetida, and
pomegranate;
Contd….
• Technological Developments
(i) Development of New Variety of Pepper:
Scientists of the Pepper Research Station,
Panniyur (Kerala) have developed a new hybrid
pepper variety that can resist the infamous
foot-not disease.
(ii) Cleaner Technology for White Pepper
Production: A microbial technology developed
by the National Institute for Interdisciplinary
Science and Technology (NIIST) promises to
provide a cost effective and hassle free means
of white pepper production.
(iii) Global Certification to Boost Export of
Organic Spices from North East : Organic spices
from India are likely to get a big boost with 300
hectares of land in the North East receiving
organic certification from global certifying agency
“INDOCERT”. The Spices Board expects to export
organic spices worth Rs 240-260 crore by 2012.
Other development
• New Norms for Chilly Exports
1. Exports of chilly powder and chilly products can
be made only with the certificate to be obtained
from the Spices Board indicating that the
consignment is free from Sudan I to IV.
2. No consignment of chillies, chilly products and
other food products containing chilly products in
whatsoever form shall be allowed for exports
unless it carries a certificate issued by the
Spices Board to the effect that the consignment
does not contain aflatoxin beyond acceptable
levels.
ITC-HS CODES FOR
AGRICULTURAL
PRODUCTS
General Introduction
• There are millions of trade transactions occurring
each year. These transactions are classified under
approximately 8,000 different products. Every item
that is exported is assigned a unique 10-digit
identification code.
• For example, concentrated frozen apple juice is
assigned a 10-digit identifier. This number is an
aggregate of a series of codes starting with a
broad category assigned a 2-digit identifier
described as Preparations of Vegetables, Fruit,
Nuts etc. It is then assigned a 4-digit identifier
described as fruit juices and vegetable juices, etc.
The 6-digit identifier is described as apple juice.
Governing Body of ITC (HS) Code:
• The bulk of edible oil India imports under the Open General
License (OGL) is RBD palmolein of Malaysian and
Indonesian origin.
Edible Oil Consumption Trends
The Breakup
Oil Refineries
• India has approximately 300 crude edible oil
refining units, 60-70 per cent of which are small.
• The import of refined palm oil was put under OGL (open
general licence) in March 1994. Other edible oils were put
under OGL in April 1995.
• The duty on both was 65 per cent. Duty was then slashed
to 30 per cent for both, then to 20 per cent in 1996 and 15
per cent in the 1999-2000 budget.
Import Duty
• On December 30, 1999, a differential duty structure was
introduced. Duty on refined oil was fixed at 27.5 per cent (25 per
cent plus 10 per cent surcharge), while that on crude was retained
at 16.5 per cent (15 per cent plus 10 per cent surcharge).
• But only actual users (as opposed to traders) are allowed to avail
of this reduced duty on crude oil. Traders are allowed to import
crude at the reduced duty but only to sell to actual users on a high
seas basis.
• This requires that the actual user fills in the import documents (and
pays the reduced duty) but leaves the importing process to the
trader.
Import Duty
• In most parts of the world, import duty on
oilseeds is lower than that on oils. But, in India, it
is higher: 40 per cent. That is why no import of
oilseeds or oil-bearing material has taken place in
India. The industry wants the duty to be lowered
from the present 40 per cent to 5 per cent.
Current & Future Scenario
• India is now the world's top vegetable oil buyer, importing
8.7 million tonnes in 2008/09.
• India's vegetable oil imports are likely to rise nearly a tenth to 9.5
million tonnes in 2009/10 as consumption rises on the back of rapid
economic growth and is underserved by a likely drop in local oilseed
output
• The edible oils industry is one sector in India that will see
considerable reform in the foreseeable future.
Production in India
Import of Oil in India
Import Policies
• Customs Duty
Customs Duty on Agro and Agro Products
• Section - 1 : Live Animals; Animal Products
• Section - 2 : Vegetable Products
• Section - 3 : Animal or Vegetable Fats and Oil
s and their Cleavage Products; Prepared Edib
le Fats; Animal or Vegetable Waxes
Seeds Division
• The Seeds Rules 1968
• The Seeds ACT, 1966
• The Seeds (Control) Order, 1963
• Salient Features Of The Protection Of Plants
Varieties & Farmers Rights Bill, 2000
Agricultural Implements And Machinery
Division
• The Dangerous Machines (Regulation) Act, 1983
• The Dangerous Machines (Regulation) Act, 1984