Category — Agriculture

Secretary McKinney Says “Great Opportunities for Trade” in India

Under Secretary of Agriculture for Trade and Foreign Agricultural Affairs, Ted McKinney led a team of 50  on an agribusinesses trade mission to India from October 30 to November 3. He met with government and industry officials, and Indian companies that import U.S. agricultural products. India is the 17th largest export market for the U.S., McKinney said.

“The response has been nothing short of overwhelming — warm and embracing at all levels is how I would describe it,” he said. “We’ve had many opportunities and real discussions about trade. There are great opportunities for trade.”

U.S. agricultural exports to India totaled $1.3 billion in 2016, with tree nuts, cotton, pulses, fresh and processed fruits and prepared foods accounting for more than 80 percent of those exports. India is  also a major market for U.S. ethanol exports. The United States is India’s top ethanol supplier, with sales totaling nearly $176 million last year, reports Agrinews.

“Trade is a two-way street. As long as rules are followed, we embrace imports to the U.S., as well,” added McKinney.
Top US Agricultural Exports to India, 2006-2016

November 11, 2017   No Comments

Indian and Foreign Companies commit to $11 billion in Food Sector

Speaking at World Food India 2017 in New Delhi,  India’s Finance Minister Arun Jaitley said, “Food processing is going to be one of the principal industries of India in the future. The farm to kitchen chain is going to change in India, like elsewhere, with increased agricultural production, better storage facilities, more food processing and changing consumer food preference.” Jaitley holds one of the most powerful posts in Prime Minister Modi’s cabinet and is considered part of his trusted inner circle.

Food processing

Food processing

The three-day food fair ended with 50 memoranda of understanding  signed and an investment commitment of $19 billion of which $11.25 billion will be from the private sector.  For example, PepsiCo signed an MoU worth $2 billion  to set up a food and beverage plant, Coca Cola will invest $1.7 billion in juice bottling and fruit processing plants and equipment, while Indian companies ITC and Patanjali committed an investment of  $1.54 billion each in this sector. Amazon signed an MoU in the food retail sector.

The Indian food market was worth $193 billion in 2016 and is expected to cross $540 billion in 2020, reports India Retailing. The sector has been growing at the rate of 12 percent annually.

Food Processing Minister Harsimrat Kaur Badal said, “100 percent foreign direct investment is   allowed in this sector through the “automatic” route and we have seen inflows increase 40 percent over the last year.” The industry enjoys many fiscal incentives, including preferential credit under priority sector lending, she added.

 

 

November 7, 2017   No Comments

Cargill to Invest Additional $240 Million in India

Minnesota-based Cargill said it will invest $240 million in India over the next five years in its business of edible oil, cocoa and chocolates, starches and sweeteners, and animal nutrition. This announcement was made at the World Food India Conference held in Delhi in early November by Cargill Asia Pacific CEO  Peter Van Deursen, at a MoU signing ceremony in the presence of Harsimrat Kaur Badal, India’s minister for Food Processing.

Cargill Logo

Van Deursen said, “India is an important market for us and this increased investment demonstrates our commitment to the country and the development of its agriculture and food processing industry,” reports BusinessLine.

The company employs more than 3,500 employees in India. Last year, Cargill inaugurated its first wet corn milling plant in India, set up with an investment of $100 million. The company also inaugurated a new dairy feed mill in Bathinda, Punjab, and its largest business services center in Bangalore.

November 7, 2017   No Comments

Seafood Park Launched in Odisha, India

The Industrial Infrastructure Development Corporation of the state of Odisha in India, set up a 152-acre “Seafood Park” where food processing companies can locate their factories. The $21 million park has been approved under the Mega Food parks project of the Federal ministry of food processing industries.

The project will have 41 processing units which will provide plug and play infrastructure and access to common facilities such as prepping and post-processing areas, ice plants, polythene and packaging units as well as a research and development facility. The Seafood Park can process 90,000 million tons of seafood per year.

fishing net

Falcon Marine Exports Ltd, Magnum Seafoods Ltd, Utkal Exports and Coastal Corporation Ltd. are some of the companies that have invested in operating units in the Park. The government of Odisha has set up a target of  $3 billion in seafood exports annually in the next five years — a substantial increase from the current $390.5 million.

October 30, 2017   No Comments

India’s Shrimp Exports Surge Due to Bumper Harvest

According to a report by Globefish, a unit within the United Nations Food and Agriculture Organization, the seafood export value from India is expected to reach $2.3 billion — a growth of 41 percent this year. The abundant vannamei shrimp harvest in India will boost India’s seafood export performance in 2017, along with that of Chile.

shrimp

FIS reports that significant import growth is forecast for the South East Asian emerging markets in particular, while the traditional “big three” comprising the United States, EU and Japan will all see a surge in seafood demand due to improving economic conditions. The value of world trade in fish and fishery products is expected to increase by a projected 5.8 percent to $150.9 billion in 2017.

The top five shrimp exporters  in 2016 were India, Vietnam, Ecuador, Indonesia and Thailand.

October 29, 2017   No Comments