79
Commodity Boards and other Development Authories, Instuonal Trade Facilitaon and Public Sector Corporaons 177 Annual Report 2013-14 8 Commodity Boards and other Development Authories, Instuonal Trade Facilitaon and Public Sector Corporaons The Plantaon sector is important component of Indian economy. This sector is related to the livelihood concerns of a large number of people employed directly and indirectly in the plantaon industry and its ancillary acvies. The primary focus of the sector is on livelihoods and uniqueness of the crops that represent historical, cultural and ecological uniqueness of their regions and are brand ambassadors of ‘India’. This has been a remarkable year for India in terms of Internaonal recognions in the area of building coalions and taking the lead at internaonal commodity bodies along with pursuance of producers’ interests in the tea, spices and coffee sectors. The present chapter comprises of the following topics: A. Commodity Boards And Other Development Authories i. Tea ii. Coffee iii. Natural Rubber iv. Spices v. The Agricultural and Processed Food Products Export Development Authority (APEDA) vi. Tobacco Board vii. The Marine Products Export Development Authority (MPEDA) B. Trade Facilitaon Instuons i. Indian instute of foreign trade (IIFT) ii. Indian instute of packaging (IIP) iii. Naonal Centre for Trade Informaon (NCTI) iv. Quality Control and Pre-shipment Inspecon Agency v. Footwear Design & Development Instute (FDDI) vi. Indian Diamond Instute (IDI) C. Public Sector Corporaons i. Minerals and Metal Trading Corporaon Limited (MMTC) ii. The State Trading Corporaon of India Ltd. (STC) iii. Spices Trading Corporaon Limited (STCL) iv. Projects and Equipments Corporaon of India (PEC Ltd.) v. India Trade Promoon Organisaon (ITPO) A. Commodity Boards And Other Development Authories TEA India is the largest producer and consumer of black tea in the world. Tea is grown in 15 States in India, of which Assam, West Bengal,

Commodity Boards and other Development Authorities ...commerce.gov.in/pdf_download/10.Commodity Boards and other... · Commodity Boards and other Development Authorities, Institutional

Embed Size (px)

Citation preview

Page 1: Commodity Boards and other Development Authorities ...commerce.gov.in/pdf_download/10.Commodity Boards and other... · Commodity Boards and other Development Authorities, Institutional

CommodityBoardsandotherDevelopm

entAuthorities,InstitutionalTradeFacilitationandPublicSectorCorporations

177Annual Report 2013-14

8Commodity Boards and other Development Authorities,InstitutionalTradeFacilitationandPublicSectorCorporations

The Plantation sector is important component of Indian economy. This sector is related to the livelihood concerns of a large number of people employed directly and indirectly in the plantation industry and its ancillary activities. The primary focus of the sector is on livelihoods and uniqueness of the crops that represent historical, cultural and ecological uniqueness of their regions and are brand ambassadors of ‘India’.

This has been a remarkable year for India in terms of International recognitions in the area of building coalitions and taking the lead at international commodity bodies along with pursuance of producers’ interests in the tea, spices and coffee sectors.

The present chapter comprises of the following topics:

A. Commodity Boards And other DevelopmentAuthorities

i. Tea ii. Coffee iii. Natural Rubber iv. Spices v. The Agricultural and Processed

Food Products Export Development Authority (APEDA)

vi. Tobacco Board vii. The Marine Products Export

Development Authority (MPEDA)

B. TradeFacilitationInstitutions

i. Indian institute of foreign trade (IIFT)

ii. Indian institute of packaging (IIP) iii. National Centre for Trade Information

(NCTI) iv. Quality Control and Pre-shipment

Inspection Agency v. Footwear Design & Development

Institute (FDDI) vi. Indian Diamond Institute (IDI)

C. PublicSectorCorporations

i. Minerals and Metal Trading Corporation Limited (MMTC)

ii. The State Trading Corporation of India Ltd. (STC)

iii. Spices Trading Corporation Limited (STCL)

iv. Projects and Equipments Corporation of India (PEC Ltd.)

v. India Trade Promotion Organisation (ITPO)

A. Commodity Boards And other DevelopmentAuthorities

teA

India is the largest producer and consumer of black tea in the world. Tea is grown in 15 States in India, of which Assam, West Bengal,

Page 2: Commodity Boards and other Development Authorities ...commerce.gov.in/pdf_download/10.Commodity Boards and other... · Commodity Boards and other Development Authorities, Institutional

178 Annual Report 2013-14

CHAPT

ER-8

Tamil Nadu and Kerala account for about 98% of the total tea production. The traditional States where tea is grown to a small extent are Tripura, Himachal Pradesh, Uttarakhand, Bihar and Karnataka. The non-traditional States that have entered the tea map of India in the recent years include Arunachal

Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, and Sikkim.

Production: The estimated production for the year 2013-14 was 1205.40 M.Kgs., as against 1135.07 M.Kgs for 2012-13, - an increase of 70.33 M.Kgs (6.20%).

table: 8.1 ProductionofTeainIndiaduringlastthreefinancialyears(inmillionkgs)

Year north India south India All India2011-12 865.59 229.87 1095.462012-13 893.38 241.69 1135.07

2013-14(P) 960.96 244.44 1205.40(P)Provisional,subjecttorevisionSource:TeaBoard

table:8.2 ExportsofteafromIndiaduringthelasttwofinancialyears

2013-14(P) 2012-13Qty

M.Kgsvalue

rs. Crs.value M.US$.

Unit Price Rs./Kg.

Unit Price$/

Kg

QtyM.Kgs

value rs. Crs.

value M.US$

Unit Price Rs./Kg.

Unit Price$/

Kg218 4392 736 185 3.40 214 3305 690 154 3.22

(P)Provisional,subjecttorevision: Source:TeaBoard

exports : The estimated Exports for the year 2013-14 was 218 m. kg. - an increase of 2 m.kg over the previous year. Because of higher unit price, the total value of exports was up

During 2013-14, significant improvement in exports was noticed for Bangladesh (256.04%), USA (15.46%), Iran (19.70%), UAE (7.81%) over the corresponding period.

Imports : The estimated volume of tea imported during the financial year 2013-14 was 19.23 million Kgs. valued at US$ 39.29 million with a unit price of US$ 2.04 per Kg. as against 21.90 million kgs., valued at US$

by Rs. 386 crores over previous year. Total foreign exchange earned during 2013-14 was 727 M.US$ as against 736 M.US$ in 2012-13.

51.91 million with a unit price of US$ 2.37 per kg in 2012-13. Out of the total volume tea imported, 8.66 million Kgs., was used for re-export during the year 2013-14.

At present, basic import duty on tea is 100% and on instant tea 30%. However, duty free import of tea is allowed under the duty exemption scheme and/or by EOU/SEZ units.

Page 3: Commodity Boards and other Development Authorities ...commerce.gov.in/pdf_download/10.Commodity Boards and other... · Commodity Boards and other Development Authorities, Institutional

CommodityBoardsandotherDevelopm

entAuthorities,InstitutionalTradeFacilitationandPublicSectorCorporations

179Annual Report 2013-14

(P)Provisional,subjecttorevision:Source:TeaBoard

Series1CIS

51.5824%

Series1USA13.526%

Series1Iran22.4210%Series1

UAE23.1911%

Series1UK

16.668%

Series1Pakistan19.789%

Series1ARE7.393%

Series1Bangladesh

10.615%

Series1Germany7.283%

Series1Others45.6921%

Chart 8.1 DirectionofIndianTeaExportsin2013-14(P)

Prices :Prices in public auctions decreased by Rs.1.79 per kg during 2013-14 as compared to 2012-13. CTC Tea prices declined by Rs. 3.02 per Kg (2.42%) whereas there was an increase of Rs. 16.18 per Kg (10.37%) of Orthodox tea when compared to the prices for 2012-13.

table:8.3 Average Prices of tea per kg sold in

Publicauctions(Rs/Kg)

Period north India

south India

All India

2011-12 117.01 70.26 103.942012-13 142.09 93.75 127.91

2013-14(P) 137.61 95.82 126.12Source:TeaBoard,(P):Provisional

table: 8.4 CategoryPricesofTeainRs./Kg

Category 2011-12 2012-13 2013-14(P)All Tea 103.94 127.91 126.12CTC 100.50 124.75 121.73Ortho 119.74 156.02 172.20

Source:TeaBoard,(P):Provisional

tea Development

As part of Plan schemes approved for implementation, financial assistance is extended for development of tea sector. Activities supported include uprooting and replanting/rejuvenation of old aged tea bushes, creation of irrigation facilities, new planting in hilly and NE Regions in small holdings, collectivisation of small growers by way of Self Help Groups/producer groups, training, demonstration, study tours modernisation of tea processing factories, value addition, quality certification, incentivization of production of orthodox and green teas. During the year, tea plantations were supported in achieving 724 ha of new planting, 5090 ha of replanting and 983 ha of rejuvenation of tea bushes including irrigation support at a cost of Rs 57 crores. Increase in production of orthodox tea by 61 mn kg was also achieved at a cost of Rs 16 croroes.

small Grower Development Directorate

During the year, a separate Directorate was established to look after the developmental

Page 4: Commodity Boards and other Development Authorities ...commerce.gov.in/pdf_download/10.Commodity Boards and other... · Commodity Boards and other Development Authorities, Institutional

180 Annual Report 2013-14

CHAPT

ER-8

needs of the small tea growers. The Directorate with headquarters at Dibrugarh in Assam started functioning with effect from 1st April 2013. Developmental activities supported by the directorate include enumeration and issuance of identity cards to the small growers, group formation and linking them with tea factories, extending advisory services, setting up of nurseries for supply of good quality planting materials, organising, study tours Tea conventions and workshops etc. A total of Rs 4.77 crores was spent on these activities. A sum of Rs. 2.69Cr was spent on extending assistance to SC small tea growers.

the India sustainable tea Program :

A sustainability code – named as ‘ Trustea’, was launched in Kolkata on 11 July 2013.The code which is now under pilot phase encompasses all aspects of tea production and seeks to embrace sustainability principles to boost productivity, maintain safety standards to improve quality compliance, and include all stakeholders in the mainstream. On full scale adoption by the Indian tea industry, the Trustea code would lead to production of “Certified” safe and hygienic teas - safer, healthier and more environmentally friendly teas. The programme would gear the up the industry to be ready for facing future consumer and customer demands, safeguard the competitiveness of the Indian tea industry, maintaining improved relationships and loyalty in the supply chain and other stakeholders, long-term security of supply for the Indian tea market, healthier plantations, workers and the environment, international recognition of sustainable tea practices in India.

OrganicTeaDevelopmentProject: This five year project launched in September 2008 with the support of FAO-IGG, CFC and IFOAM was successfully completed on September 2013. The final evaluation of the project was carried out by an evaluation team mounted by CFC during September 2013.

EnergyConservationinsmallteaprocessingfactories in south India : This project was launched in 2008 with the support from UNDP-GEF (United Nations Development Programme – Global Environment Facility). This four year project was completed in 2012. The interventions through the project resulted in saving 10 million KWH / yr and 25,000 tons firewood /yr valued at USD 2.3 million by south Indian tea factories. CO2 emission reduction estimated to be more than 200,000 tons in the project period. The project also demonstrated a successful multi stakeholder engagement with civil society, academic institutions and private sector working together under the guidance of the Tea Board. Given the significant results of the project, it has been decided to replicate the project with the assistance of UNDP in the North Indian Plantations as well during the XII Plan period. The project will be launched soon after receiving the approval of Government for the activities proposed for the XII Plan period.

Labour welfare : Supporting welfare measures for securing better working conditions and improvement of amenities and incentives for workers and their dependants is one of the major objectives and functions of the Tea Board, as mandated in the Tea Act 1953. Since the regulatory and welfare of plantation workers fall under the ambit of PLA and

Page 5: Commodity Boards and other Development Authorities ...commerce.gov.in/pdf_download/10.Commodity Boards and other... · Commodity Boards and other Development Authorities, Institutional

CommodityBoardsandotherDevelopm

entAuthorities,InstitutionalTradeFacilitationandPublicSectorCorporations

181Annual Report 2013-14

the same being implemented by the State Government, the welfare activities under taken by the Board are supplemental in nature and cover general welfare measures on the three broad areas, namely(a) Improving the health and hygiene of workers; (b) Education of wards of workers; and (c) Imparting training to improve skills for growers/workers and plantation managerial staff etc.

Under the health and hygiene programme, financial support is provided for safe drinking water, sanitary units, augmenting the infrastructure of the garden hospitals/ health centres and procurement of medical equipments and accessories, ambulance etc. For specialized treatments for tea plantation workers and their dependants, beds are reserved in selected hospitals/health clinics. Family welfare education programme are supported for creating awareness amongst the workers on small family norms, prevention of aids/HIV infection, drug abuse etc. Scouting and guiding activities are also supported for the benefits of children. Financial assistance is also given to physically challenged plantation workers and their wards by providing crutches, caliper shoes, artificial limbs etc. A total of Rs 8.13 crores was spent on these activities during the year 2013-14.

TeaPromotion

One of the primary functions of the Tea Board is to carry out promotion activities aimed at improving the consumption of tea and to boosting Indian tea exports. Focused attention is being paid to selected countries, where there is greater scope for increasing export. Indian exporters are being provided with all possible support to encourage exports and marketing of Indian brands abroad.

Introduction of pure or predominantly Indian brands by foreign packers is also being encouraged.

Towards this objective, the activities envisaged under the 5-5-5 Project were continued during the year. This project is aimed at positioning “Indian Tea” as an over-arching umbrella brand to connect with the trade and the consumers. This is expected to result in prominent brand recall for “Indian Tea” over the short to medium term so as to translate into significant increase in value market shares in the targeted markets for years to come. Keeping in view the increasing competition in the world market, a number of promotional activities centering around ‘Extensive promotion of India Tea Logo (familiarization/creating awareness)’, ‘Engagement with the local trading community’ and ‘Consumer-oriented promotion’ were undertaken with great zeal in the strategically important markets of U.S.A., Russia, Kazakhstan, Iran and Egypt. In fact, as a consequence of sustained promotion through 5-5-5 Programme, exports to Iran and U.S.A. witnessed 20% and 19% volume growth respectively in 2013-14 as compared to 2012-13; while the value growth registered 35% and 8% respectively in the same comparing periods.

During 2013-14, the Tea Board carried out various promotional activities such as participation in trade fairs & exhibitions, organising PR events, giving adverts in local media mainly through its overseas offices located at London, Moscow and Dubai to enhance demand for Indian tea and thereby increase market shares in the respective markets. Other activities included launch

Page 6: Commodity Boards and other Development Authorities ...commerce.gov.in/pdf_download/10.Commodity Boards and other... · Commodity Boards and other Development Authorities, Institutional

182 Annual Report 2013-14

CHAPT

ER-8

of campaign through established social networks like Twitter, Facebook in important markets of Russia, Kazakhstan Iran & U.S.A., promotion through Tea Associations having majority of exporter members from India with cost sharing basis limited to Rs.50 lakh per annum, participation in major B-2-B trade fairs and undertaking full-fledged business delegations (both inbound and outbound) in the 5-5-5 countries, market surveys, market analysis and tracking of consumer behaviour, registrations of Board’s Logos in various markets as well as popularizing the usage of these logos in order to enhance the equity of Indian Tea and its various single-origin teas. The markets in Russia, Kazakhstan, UK, USA, Iran, Egypt, Pakistan and UAE continued to be of high importance.

The Tea Board has also begun a promotional campaign in the domestic market. Owing to strong competition from other major producing and exporting countries whose teas are already entrenched in most of the export destinations, it is felt that it may be difficult to dislodge their position in the near future and enter such competitive markets. In the leading exporting countries such as Kenya and Sri Lanka, bulk of the production comes from small sector where they have advantage of lower cost. On the other hand, nearly 65% of the production in India comes from the organized sector which needs to take care also of the social cost. The comparatively higher cost of Indian teas therefore, often leads to Indian tea being priced out in the international markets. With a view to avoid any surplus production caused by such situation leading to price depression and to create enhanced demand in order to absorb surplus production, it has been planned

to launch a promotional campaign among the villages and rural population by for increasing the average intake of every person by one more cup of tea. The objective of this campaign is to reinforce the image of Indian tea in the minds of the rural population as the most preferred beverage, thereby increasing consumption and popularity of Indian tea. This campaign also aims to give an ‘image makeover’ to Indian tea, whereby every villager will take pride in sipping his/her daily cup of ‘chai’.

IntellectualPropertyRights(IPR)activities

Tea Board has continued its objectives to protect and preserve its various tea names and logos as India’s treasured geographical indications and icons of India’s cultural and collective heritage. The Tea Board continued to challenge, by way of opposition/ invalidation/ cancellation actions, legal notices, court actions and domain name cancellations, instances of attempted registrations and misuse of these tea names and logos both at the domestic and international level.

The Tea Board has renewed its registrations for the mark DARJEELING and DARJEELING (Logo) in India for a further period of 10 years.During the year, twenty Five oppositions were filed by the Tea Board to prevent attempted registrations and misuse of DARJEELING, ASSAM, NILGIRI tea names and logos as well as the INDIA TEA Logo. Tea Board filed one opposition in Germany, pertaining to use of a mark TEEKANNE ROYAL ASSAM which comprises of the word ASSAM. This opposition is pending before the Community Trade Marks Office. Around three hundred

Page 7: Commodity Boards and other Development Authorities ...commerce.gov.in/pdf_download/10.Commodity Boards and other... · Commodity Boards and other Development Authorities, Institutional

CommodityBoardsandotherDevelopm

entAuthorities,InstitutionalTradeFacilitationandPublicSectorCorporations

183Annual Report 2013-14

and forty five oppositions are pending in India. In recognition of the Tea Board’s rights, 32 parties settled the matters and 74 oppositions were decided in favour of the Tea Board in recognition of its rights.Presently, there are seven opposition matters, six appeals, one lawsuit and one cancellation action pending outside India. Ten matters were disposed of during this period in favour of the Tea Board of which three were in China, two in Turkey, and one each in France, UK, Germany, Australia and Canada.

tea Licensing : The Licensing Branch of the Tea Board is responsible for implementation of various statutory and regulatory provisions of the Tea Act 1953 and orders issued there under by the Government from time to time e.g. Tea (Marketing) Control Order, Tea (Distribution and Export) Control Order, Tea Ware-House License order and Tea Waste Control Order. The main functions include issuance of permission for planting, registration of tea manufacturers, Buyers, business licenses for tea exporters and distributors; non-preferential certificate of origin for tea exporters; Tea Waste license; Tea Warehousing licenses etc.

tea research : As per the provisions of Tea Act, 1953 Tea Board has been extending support to tea research for the development of Indian Tea Industry through three tea research institutes, namely Darjeeling Tea Research and Development Centre (DTR&DC); Tea Research Association (TRA), Jorhat, Assam and United Planters’ Association of Southern India – Tea Research Foundation (UPASI-TRF), Valparai, Tamil Nadu. TRA and UPASI-TRF are also disseminating extension services through the network of their advisory centres in

different tea plantation areas in their respective zones. During 11th plan period, seventeen research projects in diverse areas of tea research were sanctioned to three Tea Research Institutes (TRA-11, UPASI-4 and DTR&DC-2), and three projects – one each were given to Indian institute of Technology (IIT), Kharagpur; Centre for Development of Advanced Computing (CDAC), Kolkata and Calcutta University.

• 80% funding has been provided to TRA and UPASI-TRF (49% in the form of regular grant-in-aid under 5 identified heads and 31% to be linked to research projects). Upgradation work of DTR&DC as “Centre of excellence” was also continued. Important areas of tea research include tea improvement, quality & product diversification, mechanization (labour saving technology), production (agronomy and soil science), pest management, climate change, and regulatory aspect. New institutes are being inlcuded in the All India Co-ordinated network research projects on tea .Under the programme, financial support is given to the universities in tea belts of the country that carry out specialized course on tea science and cater to the need of technical manpower for the industry.

• tea Cess: Cess is levied on all teas produced in India under Section 25(1) of the Tea Act, 1953. Tea cess is the main source of funding for the Non Plan Expenditure of Tea Board. Presently the rate of tea cess is 50 paise per kg of made tea for all teas produced in the country except Darjeeling tea which is at 20 paise per Kg of made tea.

Page 8: Commodity Boards and other Development Authorities ...commerce.gov.in/pdf_download/10.Commodity Boards and other... · Commodity Boards and other Development Authorities, Institutional

184 Annual Report 2013-14

CHAPT

ER-8

CoFFeeCoffee Board is a statutory organization under the control of Ministry of Commerce, Govt. of India constituted under The Coffee Act 1942, an Act enacted by the Parliament. The Board has a Central Coffee Research Institute at Balehonnur (Karnataka) and Regional Coffee Research Stations at Chettalli (Karnataka), Chundale (Kerala), Thandigudi (Tamil Nadu), RV. Nagar (Andhra Pradesh) and Diphu (Assam), and a biotechnology centre at Mysore, apart from the extension offices located in coffee growing regions of Karnataka, Kerala, Tamil Nadu, Andhra Pradesh, Orissa and North Eastern Region.

The Coffee Board mainly focuses its activities on research, extension, development, quality up-gradation, economic & market intelligence, external & internal promotion of coffee and

labour welfare. Coffee is cultivated in an area of around 4.15 lakh hectares predominantly in the traditional areas covering the States of Karnataka, Kerala and Tamil Nadu, which contributes around 98 percent of the total production. Coffee is also cultivated to some extent in Non Traditional areas of Andhra Pradesh and Odisha and to a lesser extent in the North Eastern States of Assam, Arunachal Pradesh, Meghalaya, Mizoram, Tripura, Nagaland and Manipur with main emphasis on tribal development and afforestation.

Coffee Production : The post-monsoon crop estimates for 2013-14 has been placed at 3,11,500 MT consisting of 1,02,000 MT of Arabica and 2,09,500 MT of Robusta as compared to the 2012-13 final crop estimates of 3,18,200 MT comprising of 98,600 MT of Arabica and 2,19,600 MT of Robusta.

Chart 8.2 ProductionofCoffeeinIndia(MT)

Source:CoffeeBoard *PostMonsoonEstimates

Production of coffee in India (In MT)

0

50000

100000

150000

200000

250000

300000

350000

2003

-04

2004

-05

2005

-06

2006

-07

2007

-08

2008

-09

2009

-10

2010

-11

2011

-12

2012

-13

2013

-14*

Arabica Robusta Total

`

CoffeeProductivity: Based on the estimated crop production for the year 2012-13, the overall productivity of coffee is 846 kg/ha.

The productivity for Arabica is 560 kg./ha and for Robusta, it is 1097 kg/ha. As far as the traditional area is concerned, the overall

Page 9: Commodity Boards and other Development Authorities ...commerce.gov.in/pdf_download/10.Commodity Boards and other... · Commodity Boards and other Development Authorities, Institutional

CommodityBoardsandotherDevelopm

entAuthorities,InstitutionalTradeFacilitationandPublicSectorCorporations

185Annual Report 2013-14

productivity for 2012-13 is 951 kg/ha with the productivity for Arabica being 717 kg/ha and that for Robusta being 1102 kg/ha.

Coffee export: Coffee is primarily an export oriented oommodity and presently 70% of Coffee is being exported, while balance is being consumed domestically. The total quantity of coffee exported from India during 2012-13 including re-exported coffee after value addition was 2,99,236 Metric

Tonnes. The top five export destinations for Indian Coffee are Italy, Germany, Russian Federation, Belgium and Slovenia, which accounted for about 53% of our total coffee exports. The value realization out of coffee exports during 2012-13 was Rs. 4551.69 crores.

During the year 2013-14, India exported 3,15,000 MT valued at Rs. 4800.91 crores as against the export target of 2,56,000 MT.

Chart 8.3 ExportsofCoffeefromIndia(InMT)

Source:CoffeeBoard *Provisional

0

50000

100000

150000

200000

250000

300000

350000

2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14*

Exports of Coffee from India (In MT)

ExportofValueAddedCoffee: The export of value added coffee used to be in the range of 44,764 MT to 64,966 MT during the period 2003-04 to 2007-08. In 2008-09, the export of value added coffee was about 48,812 MT which started growing steadily and consistently at an annual compound growth rate of 13.11 % and it has reached an all time high of 94,250 MT in 2013-14.

DomesticConsumption: Coffee consumption in the country is growing much faster in

recent years, with an annual average growth rate of 5-6% per annum during last decade. The domestic consumption is estimated at 102,000 MT for 2009-10 based on the coffee consumption survey carried out during 2009. It was provisionally estimated at 115,000 MT for 2011-12. The process of assessment of domestic consumption for 2012-13 and 2013-14 is underway.

Several steps/programmes have been initiated by the Board for supporting the

Page 10: Commodity Boards and other Development Authorities ...commerce.gov.in/pdf_download/10.Commodity Boards and other... · Commodity Boards and other Development Authorities, Institutional

186 Annual Report 2013-14

CHAPT

ER-8

domestic market development of coffee. The entrepreneurial development trainings at IIPM in the coffee sector are being given to augment development of enterprise in roast and ground coffee which further feeds the rising demand by setting up of new roasting units and increasing the capacity of the existing units. For improving coffee awareness, Coffee Board participates in the high impact tools like domestic exhibitions and expos to create awareness on positive aspects of coffee. The media campaigns also focus on strengthening the drivers of consumption while simultaneously promote awareness on the various support schemes of Coffee Board. During 2013-14, Coffee Board participated in 46 important exhibitions held in Indiatopromote coffee as a beverage in the non-conventional coffee drinking areas.

ExportPromotionofCoffee:

The high quality Coffees of India earn premium in the international market. However, considering the supply constraint due to limited production base, it is important to increase the visibility in high value far off markets like USA, Japan, Canada, Australia and New Zealand, while retaining our strong base in the European Union. Export incentives are extended by the Board to encourage export of value added coffees in retail packs and high value coffees to far off markets. These efforts are supported by participation in selected international coffee centric trade conferences and events, Organizing Cupping and Buyer-Seller Meets, increasing trade awareness on Coffees of India as shade-grown, handpicked and sun dried, by inserting advertorials/advertisements in prominent overseas trade journals and

magazines besides maintaining constant high level interaction with the International coffee community through proactive participation in International Coffee Organization and such bodies. Coffee Board showcased Coffees of India at premium events in USA, Japan, China, Korea, Italy, Germany, Australia, Russia, Dubai and Bangkok.

FlavourofIndia-FineCupAwards2013: The Coffee Board of India has been organizing Flavour of India - The Fine Cup Award Cupping Competition every year with an objective of promoting production of fine quality coffees. Final round of cupping for the Twelth year of Flavour of India Competition was held on 26-28, June 2013 at Acropolis Exhibition Centre, Nice, France. The logistic & technical support was provided by SCAE. For the Competition, 221 coffee samples (137 Arabica samples, 84 Robusta Samples,) were received, out of which 40 qualified for finals and were put up for cup quality evaluation by the International Jury.

India International Coffee Festival 2014(IICF 2014): The recently concluded 5th edition of the India International Coffee Festival-2014 held in Bangalore from 21st -25th January 2014 was a testimony of the increasing importance of our country in the coffee map of the world. The festival which was witnessed by more than 10,000 persons has seen participation of more than 524 delegates and 250 organizations from across 17 countries. The festival was organized by the India Coffee Trust with the support of the Coffee Board. The Coffee Board distributed the Flavour of India – Fine Cup Awards for the years 2012 and 2013 and the Export Awards for the years 2011-12 and 2012-13 alongside

Page 11: Commodity Boards and other Development Authorities ...commerce.gov.in/pdf_download/10.Commodity Boards and other... · Commodity Boards and other Development Authorities, Institutional

CommodityBoardsandotherDevelopm

entAuthorities,InstitutionalTradeFacilitationandPublicSectorCorporations

187Annual Report 2013-14

the Award distribution ceremony of the IICF. Another new element which got added to the IICF was an All India Coffee Quiz in which more than one lakh participants took part.

CoffeePrices: Coffee prices in India are largely influenced by the New York Exchange (NYBOT) for Arabicas and London Exchange (LIFFE) for Robustas. The international coffee prices are volatile and have a tendency to fluctuate. After prolonged coffee crisis which prevailed from 2000 to 2004, the international coffee prices started recovering from 2005 onwards. The improvement in ICO indicator prices was more significant from 2009 onwards reaching a record high of US cents 300.12 per lb for Arabica coffee in April 2011 and US cents 121.98 per lb for Robusta coffee in May 2011. The international coffee prices have, however, shown a downward trend since then.

The ICO Arabica coffee prices declined by 58% reaching a low of 125.97 US cents per lb in December 2013. The Robusta coffee prices also showed a downward trend, though the initial decline was not as acute as for Arabica. The ICO Robusta coffee prices declined by 28% reaching 87.89 US cents per lb in December 2013. Similar decline in coffee prices has been observed in the domestic market also.

January 2014 onwards, the coffee prices maintained stability and showed sign of recovery following the fall in production due to abnormally hot and dry weather conditions in Brazil, the largest producer and exporter of coffee. This has raised alarms regarding damage to next season’s crop. In April 2014 the ICO Arabica coffee prices have touched 123.48 US cents per lb and the ICO Robusta coffee prices touched 105.55 US cents per lb.The average ICTA domestic price of Arabica during the month of April 2014 was Rs.277.33/kg and the average domestic price of Robusta during the month of April 2014 was Rs.157.08/kg.

Coffee Development Schemes during XIIthPlan

Based on recommendations made by IIPM, Bangalore under their study ‘Structural Infirmities in Plantation Sector’ – Coffee, the specific recommendations made by the Department Related Parliamentary Standing Committee on Commerce (DRPSCC) and other inputs, the ongoing XIth schemes have been combined into a single scheme “Integrated Coffee Development Project” with ten major components for a total outlay of Rs. 950 Crore.

InaugurationofIICF2014byHon’bleChiefMinisterofKarnataka

Page 12: Commodity Boards and other Development Authorities ...commerce.gov.in/pdf_download/10.Commodity Boards and other... · Commodity Boards and other Development Authorities, Institutional

188 Annual Report 2013-14

CHAPT

ER-8

table: 8.5 (Rs. crores)

Component Componenttitle outlay

1 R &D for Sustainable Coffee Production 137.50

2 Transfer of Technology and Capacity Building programmes 92.00

3 Development Support for Coffee in Traditional Areas 311.00

4 CDP in Non-traditional Areas 125.00

5 CDP in North East Region 54.50

6 Rainfall Insurance Scheme for Coffee (RISC) 10.00

7 Support for Mechanization of Coffee Estate Operations 80.00

8 Export Promotion 60.00

9 Market Development 55.00

10 Support for Value Addition 25.00

Total Outlay (Rs. crore) 950.00

Strategic initiatives for Coffee Sector inXII Plan: The coffee sector underwent unprecedented crisis during the period 2001-2004. Despite that, the sector has shown signs of recovery towards the end of XI Plan period thanks to various relief/ support measures announced by the Governments both at Central and State levels. The country’s coffee production has crossed the 3,00,000 MT level during 2010-11 (3,02,200 MT). However, issues like stagnant production, declining productivity, erratic weather due to climate change, shortage of workers etc., remain the major constraints towards the full revival of coffee sector in the country especially to meet the future requirements of domestic and export markets.

Coffeeextension: The growth in the domestic market over the last ten years with an annual average growth rate of 5 - 6% has opened up

avenues for value creation along the coffee value chain by creating entrepreneurial opportunities and creation of skilled jobs.The Board proposes to continue the training programmes for capacity building of stakeholders and entrepreneurs in roasting & brewing of coffee through Kaapi Shastra Training Programmes – which are 2-5 day training workshops organized in different parts of the country on coffee roasting and brewing. A one year Post Graduate Diploma in Coffee Quality Management which was discontinued in 2008 has been restarted by the Coffee Board of India and has received a a very positive response in 2011. This Diploma helps in developing professional manpower in the area of Quality Evaluation.

`Café Movel`, a mobile phone technology based extension service in coffee was jointly formulated by Coffee Board of India

Page 13: Commodity Boards and other Development Authorities ...commerce.gov.in/pdf_download/10.Commodity Boards and other... · Commodity Boards and other Development Authorities, Institutional

CommodityBoardsandotherDevelopm

entAuthorities,InstitutionalTradeFacilitationandPublicSectorCorporations

189Annual Report 2013-14

and Commonwealth Agricultural Bureau International (CABI) - South Asia, New Delhi. CABI, an inter-governmental organization, is the leading international non-profit science based development and information organization which has years of experience in working with coffee farmers across the globe. CABI also has rich experience and technical know-how on application of mobile phone technology based extension services in several field crops through direct2farm service.

Coffee Board has conducted surveys in traditional areas as well as in new areas like Himachal Pradesh and Darjeeling to identify potential areas suitable for coffee expansion in the country. Expansion of coffee is being envisaged to meet the increasing demand for coffee in the domestic market, without impacting the India’s share in coffee exports.In the traditional areas, expansion of coffee in suitable areas is proposed to be encouraged through incentives for new planting in XII Plan.

Coffee Debt Relief Package – 2010 : The Government of India granted the Coffee Debt Relief Package – 2010 for the debt ridden small coffee growers with a total implication of Rs. 299 Crores The total amount disbursed so far is Rs.293.45 crores benefiting 1,35,283 small coffee growers.

CoffeeinNorthEasternregion: The Coffee Board continued its efforts to promote coffee cultivation in the North Eastern States viz., Assam, Arunachal Pradesh, Meghalaya, Mizoram, Tripura, Nagaland and Manipur with main emphasis on tribal development and afforestation. The present area under

coffee (2013-14) in North Eastern Region is 6039 ha comprising of 4860 Ha. of Arabica and 1179 Ha. of Robusta with 8011 Coffee holdings. The general climate is mostly topical and sub tropical with district features experiencing long day, high rainfall change in diurnal temperature etc,. Though the rainfall spread in NER is not a limiting factor for coffee cultivation, the low temperature in winter months do not help to improve productivity. The coffee production in entire NER continued to be low on account of various factors including non use of recommended inputs, non maintenance and low plant density. Under the Coffee Development Programme for North Eastern Region, subsidy @ Rs.20,000/hectare for expansion of coffee and at Rs.15,000/hectare for consolidation was provided. During the year 2013-14, support was extended to an area of 519 Ha. under Expansion / Consolidation.

Under Quality up-gradation 90% subsidy was extended for growers below 2 hectares and at 50% for growers above 2 hectares for the preparation of good quality coffee. During the year 2013-14, support was extended 247 units of Drying yard/baby pulpers under the scheme. Market Support was extended to a quantity of 172.29 MT coffee. In addition to extending subsidy, support for production, productivity and quality improvement activities in NE Region, the Board extended financial support for meeting the cost of collection, storing, curing, transportation and disposal of coffee produced in the North eastern region.

Coffee Board continues to provide technical support to coffee growers for improving production and productivity with the support

Page 14: Commodity Boards and other Development Authorities ...commerce.gov.in/pdf_download/10.Commodity Boards and other... · Commodity Boards and other Development Authorities, Institutional

190 Annual Report 2013-14

CHAPT

ER-8

of Regional Coffee Research Station at Dhipu, Assam . During 2013-14, Coffee growers were trained on various aspects of coffee cultivation and maintenance of coffee fields through 2474 estate visits, 1190 method demonstrations, 314 group gatherings, 6 training programmes at TEC’s located at different states, 54 quality awareness campaigns and 26 study tours. Further Reach-out Training programme were conducted through the Indian Institute of Plantation Management, Bangalore during the year for the benefit of 30 tiny tribal growers of NER.

International cooperation: During the year, Indiawas elected as the Chairperson of International Coffee Council (ICC) during the ICO meeting held in September 2013. Coffee Board also entered into an Agreement with the World Coffee Research (WCR) during March 2014 for participation in a multi-country R&D programme on improvement of Arabica coffee. The WCR is a non-profit initiative of Global Development Alliance (GDA) programme funded by the USAID to strengthen the research and farmers’ assistance programmes in the fight against coffee leaf rust. This collaborative R&D programme is executed by coffee research institutions of coffee producing countries and managed by the Norman Borlaug Institute for International Agriculture located at the Texas A&M University.The research has the potential to introduce new Arabica varieties in India, necessity of which is being felt quite for some time.

rUBBer

More than 90 per cent of the country’s area under the crop and 93 per cent of the

production comes from 1.25 million small holdings, having average size of 0.55 hectare. Area under cultivation in the country expanded by 2.4 per cent to 776,000 ha during 2013-14 driven by a host of factors which include financial incentives for planting, effective extension measures reaching to the grassroots level, and development and propagation of improved clones. Rubber is successfully grown in the States of Kerala, Tamil Nadu, Karnataka, Tripura, Assam, Meghalaya, etc. Kerala alone accounted for 72 % of the country’s total rubber area during 2012-13. Relative share of the north-eastern region has increased substantially in the recent years.

According to “NR Trends & Statistics” published by the Association of Natural Rubber Producing Countries (ANRPC), India ranked fifth in terms of production of NR during 2013, by accounting for 7.1 per cent of the global output. The country is provisionally estimated to have produced 846,000 tonne of NR during 2013-14, down 7.4 % from the previous year. According to provisional estimate, average yield fell during 2013-14 to 1,633 kg/ha due to adverse weather and low prices prevailed during the year. The country came down to the second position in the ranking in terms of average yield.

ConsumptionofNR:Based on the figures for 2013, India occupies the second position in terms of consumption of NR, next to China. According to provisional estimate, India consumed 978,745 tonne of NR during 2013-14 up 0.6 % per cent on year. Auto-tyre sector accounted for 66 % of the quantity consumed during April’13 to January’14 by registering

Page 15: Commodity Boards and other Development Authorities ...commerce.gov.in/pdf_download/10.Commodity Boards and other... · Commodity Boards and other Development Authorities, Institutional

CommodityBoardsandotherDevelopm

entAuthorities,InstitutionalTradeFacilitationandPublicSectorCorporations

191Annual Report 2013-14

0.7 % growth as against 2.6 % dip in general rubber goods sector.

Import of nr : The cap on import duty for NR falling under HS 400121, 400122, and 400129 has been raised to Rs.30 per kg effective from 20 December 2013. New rate is “20% or Rupees 30 a kilogram whichever is lower”. For NR latex (HS 400110), the rate remains at “70% or Rupees 49 per kg whichever is lower". The country is estimated to have imported 325,190 tonne of NR during 2013-14 as per the NOC for customs clearance issued by the Rubber Board, which is the designated

agency for enforcing quality. An estimated 65 % of total imports had landed through open-channel on payment of prevailing customs duty. Also, 71 % landed in the form of Technically Specified Rubber.

export of nr : India’s exports of NR fell during 2013-14 to 5,398 tonne from the previous year’s 30,594 tonne. In terms of value, the exports fell 83% to US$ 14.3 million from US$ 86.2 million in the previous year. Following table summarizes the trends in production, consumption, import and export during 2013-14.

table: 8.6

Indicator (Tonnes)

2012-13 2013-14pFirstHalf SecondHalf total FirstHalf SecondHalf total

Production Growth

395,700 518,000 913,700 345,000 (-12.8%)

501,000 (-3.3%)

846,000 (-7.4%)

Consumption Growth

502,330 470,375 972,705 491,580 (-2.1%)

487,165 (3.6%)

978,745 (0.6%)

Import 112,641 104,723 217,364 181,700 143,490 325,190Export 7,466 23,128 30,594 3,495 1,903 5,398

Closing stock of nr: Estimated total stock of NR with growers, processors, traders and manufacturers at the end of March 2014 was 250,000 tonne as against 253,000 tonne at the end of March 2013.

Prices of nr : Prices of India’s benchmark grade of rubber, RSS-4, averaged at Rs.166.02 per kg at Kottayam in the domestic market during 2013-14 as against Rs.155.25 per kg for the comparable grade (RSS-3) at Bangkok in the international market. Monthly average prices in the domestic market (RSS-4, Kottayam) have stayed above the international market (RSS-3, Bangkok) during 2013-14 except for November and December.

MarketingSystem:Marketing System for NR in the country is perfectly designed with 9323 dealers and 116 processors positioned across the country covering all the rubber-growing belts. To boost sales in the export and domestic markets, the Rubber Board participated in 9 overseas trade fairs held at Moscow, Poland, USA, China, Turkey, South Africa, Thailand and Indonesia and 11 domestic trade fairs held at Chennai, Mumbai, Gujarat, Kolhapur, New Delhi, Mumbai, Indore, Bangalore &Kolkatta and provided opportunity to exporters for participating and displaying their products. To promote group marketing system and quality awareness among growers, Board

Page 16: Commodity Boards and other Development Authorities ...commerce.gov.in/pdf_download/10.Commodity Boards and other... · Commodity Boards and other Development Authorities, Institutional

192 Annual Report 2013-14

CHAPT

ER-8

organized 11 training programs in association with NIAM, Jaipur.

Collection of Cess : Under Sections 12(1) and 12(2) of the Rubber Act, the Board is entrusted with the task of assessment and collection of cess, a duty of excise, on indigenous production of NR and remittance of the same to the Consolidated Fund of India (CFI). Rate of cess effective from 1st September 2011 is Rs. 2.00 per kg.

During the year 2013-14, the collection of cess amounted to Rs. 116.87 crore against the revised annual target of Rs. 115.00 crore. The Board has also collected and deposited to the CFI, interest on belated payment of cess, @ 1.5% per month, amounted to Rs. 65.13 lakh during the year 2013–14. Besides, collection of compounding charges during the year 2013–14 is Rs. 98.50 lakh.

Plan schemes for rubber during XIIth Plan: Revised outlay for Rubber Development Scheme under Plan in 2013-14 was Rs. 157.36 Crore while the Non-Plan budget amounted to Rs 50.00 Crore. Plan and Non-Plan expenditure during 2013-14 amounted to Rs. 158.52 Crore and Rs. 57.06 Crore respectively.

During the 12th Plan period, Rubber Board’s proposal fpor the Scheme of "Sustainable and Inclusive Development of Natural Rubber Sector" with an outlay of Rs 960 Crores has been agreed.

International cooperation : A two-member delegation from Rubber Board attended Annual Meetings of International Rubber Study Group (IRSG) held in Singapore from 20 to 24 May 2013. India being the Chairman of

the Group, Chairman, Rubber Board presided over the Heads of Delegations Meeting of IRSG. A three-member delegation headed by Director (Plantations), Department of Commerce represented India in the Annual Meetings of the Association of Natural Rubber Producing Countries (ANRPC) held in Colombo, Sri Lanka from 7 to 12 October, 2013.

Under bilateral clone exchange program, it was decided to exchange clones during the visits of RRII scientists to China, Vietnam and Sri Lanka. Two senior scientists from Vietnam visited RRII.Under IRRDB initiative for multilateral clone exchange among 10 countries, Head of crop improvement attended plant breeders’ meetings at Malaysia and Indonesia during May 2013 and MOU and MTA for the programme were drafted.

Development/ Extension activities andLabour welfare schemes : Rubber plantation development activities are targeted to improve the production and productivity of rubber in the country. Technical know-how and financial assistance to the growers for scientific planting and maintenance of rubber holdings, generation and distribution of good quality planting materials, providing training for scientific harvesting of the crop, promoting Rubber Producers Societies (RPSs) & Small Help Groups (SHGs) of small farmers for extension activities, raising block plantations in association with State Governments for welfare of SC/ST, setting up of Community Processing Centres to support infrastructure facilities.

Annual campaign 2013 with focus on quality of field coagulum for improving ISNR was

Page 17: Commodity Boards and other Development Authorities ...commerce.gov.in/pdf_download/10.Commodity Boards and other... · Commodity Boards and other Development Authorities, Institutional

CommodityBoardsandotherDevelopm

entAuthorities,InstitutionalTradeFacilitationandPublicSectorCorporations

193Annual Report 2013-14

conducted from 10 June to 19 July 2013. In NE region, the thrust was on sheet rubber processing. Around 98,000 growers participated in the campaign programme. The valedictory function of Silver Jubilee celebrations of the formation of Rubber Producers Societies (RPS) was inaugurated by Shri K M Mani, Honb’le Minister for Finance, Govt. of Kerala on 19 July 2013 and released a compendium of articles on RPS.

Under Rubber Plantation Development (RPD) schemes, Rubber Production department provided financial assistance to the tune of Rs.38.00 crore during the year 2013–14 benefiting around 1,20, 000 rubber small growers. During the reporting period, 101 RPSs / SHGs have been organized and distributed critical inputs worth of Rs. 9.00 crore among small growers through RPSs and achieved a target of 15000 ha in Traditional/ Non-Traditional areas under Productivity Enhancement Scheme.

Welfare of SC/ST Communities : The tribal settlement project under RPD scheme is, operated with financial contribution from State Governments, continuing this year too. During the year, rubber planting carried out in an area of 253 ha.

Labour welfare schemes : Under various labour welfare schemes, the Board disbursed Rs.2.59 crore benefiting 32,731 rubber tappers and their families during the year 2013–14 against the revised annual target of Rs. 2.7 crore.

During the year, the Rubber Board assisted new planting or replanting in 5870 ha of traditional areas of rubber cultivation other than NER. In non-traditional areas other NER,

the assistance was provided for 2539 ha, while the assistance in the NER region was given to farmers for new planting/replanting in 8588 ha.

rubber research : During the period, the Rubber Research Institute of India (RRII) and its Regional Stations were involved in active research programmes under major schemes. Research activities of Regional Stations are under the scheme “Strengthening of Regional Research Stations” and of North-East research stations under “Research in NE Region”. Various research support services provided active assistance to research programmes. Research was conducted in various fields of development and scientific experiments e.g. crop improvement, germ plasm, molecular biology and biotechnology, genome analysis, molecular physiology, molecular pathology, latex harvest technology, and soil Testing & fertilizer advisory etc.

economic research : Rubber Board carried out various socio-economic studies during the year. Study on Trends in area under NR and food crops in Tripura revealed that most of NR was cultivated in tilla (upland) land, which was partly used for jhum cultivation before NR cultivation. Insufficient returns from other crops and suitability of NR in the specific topography of the region were found to be major reasons for encouraging NR cultivation. Annual average yield was 1237 Kg/ha in Tripura State. In its research on beneficiary households in Tripura, it found that they had better access to selected infrastructural facilities in the region.

Study on socio-economic dimensions of participatory trials of LFT in Kerala highlighted

Page 18: Commodity Boards and other Development Authorities ...commerce.gov.in/pdf_download/10.Commodity Boards and other... · Commodity Boards and other Development Authorities, Institutional

194 Annual Report 2013-14

CHAPT

ER-8

the fact that size of holding is a major factor determining the adoption of d3 tapping with stimulation. Availability of family labour was found to be a key factor influencing the adoption of LFT in smaller size group with less than 1 ha area under rubber. In the case of NR, available evidences on increase in NR imports through duty paid channel indicated supply side rigidities in NR production sector and shift to optional non advalorem duty since 2010. Emerging trends in the growth and composition of NR imports underline the need for reinvigorating the NR production sector to confront the challenges of market integration. Research also concluded that Net present value (NPV) of yield and timber was 22 years of productive life.

Modernisation & Quality upgradation: Rubber Board spent an amount of Rs.71.90 lakh for modernization and quality upgradation of rubber processing units and Rs. 180 lakh was disbursed to two Rubber wood processing companies towards working capital grant and procurement of spares.

rubber Processing & Market Development: An amount of Rs.315 lakh was released to 13 RPS trading companies towards working capital loan for NR trading and Rs. 46.02 lakh was disbursed to 20 RPS trading companies and Co-operatives towards 5% interest subsidy. In addition, Rs. 115 lakh was disbursed to 10 RPS trading companies as estate input loan.

Processing & Quality Control : A total of 18533 samples of latex, dry rubber, water, effluent and chemicals were tested and collected Rs19.42 lakh as revenue. In addition, 135 latex/dry rubber samples were

tested for export. Further, 100 Quality control inspections and 63-BIS inspections were conducted during the year.

Factory Management : During the year, Rubber Board produced 1058.475 MT of block rubber and 109.318 MT of centrifuged latex. Sales turnover for Model TSR factory was Rs15.48 crore against sale of 987.90 MT of block rubber. Latex sales turnover was Rs. 2.27 crore for 109.14 MT centrifuged latex from the Pilot Latex Processing Centre.

RubberTraining Institute : During the year, Rubber Training Institute (RTI) conducted 273 training programmes imparting training for 5457 beneficiaries against the target of 175 and 3500 respectively. The Institute (RTI) organized focused trainings on special topics for rubber plantation and rubber industry sectors. Six new general training programmes on special topics were introduced in the plantation sector. Tailor made programmes on latest agro-management practices were organized for large estates. Decentralized training on selected topics were conducted in South –Karnataka and other parts of the State. Special training on Rubber Technology for BSF employees and outstation training on promotion and knowledge transfer for value addition of rubber in Tripura for entrepreneurs and students were organized in the Rubber Industry sector.

A faculty improvement programme in rubber technology was conducted for teaching faculty in rubber technology from Govt. Polytechnics in Kerala. Training on Total Quality Management on ISO 9001:2008, regulatory measures in processing and transaction of NR and training on Agriculture

Page 19: Commodity Boards and other Development Authorities ...commerce.gov.in/pdf_download/10.Commodity Boards and other... · Commodity Boards and other Development Authorities, Institutional

CommodityBoardsandotherDevelopm

entAuthorities,InstitutionalTradeFacilitationandPublicSectorCorporations

195Annual Report 2013-14

Marketing were organized for persons from rubber trading and processing companies promoted by Rubber Board. Extension Officers were trained on ICT based extension delivery, expert system in agriculture, social networking tools and devices for technology transfer, computer hardware maintenance and Corynespora disease management. Imparted training regularly on capacity building for RPS leaders and also conducted training on RPS accounts maintenance at Regional centres.

Technical officers and staff were given training on competence development in technical service delivery. Officers and staff of RTI were given training on ISO 9001: 2008 and internal audit. Training on planning for retirement and yoga, meditation and healthcare were organised for Rubber Board employees. E-governance was given special emphasis in the course for training for administrative staff. Refresher training to drivers and farm workers on attitude and duty consciousness was conducted with the faculty support of Motor Vehicle Department and Central Board of Workers Education.

International outstation training on Rubber Cultivation, Latex Harvest Technology and Ancillary income generation from rubber plantation was conducted for executives of M/s Vizara Plantation, Malawi, Central Africa.

sPICes

Spices Board was constituted as a statutory body on 26th February, 1987 under Section (3) of the Spices Board Act, 1986. The Board is headed by a Chairman with its head office at Kochi. Spices Board is responsible for the development of cardamom industry and export promotion of 52 spices listed in the schedule of the Spices Board Act, 1986. The primary function of the Board includes production development of small and large cardamom, promotion, development and regulation of export of spices. The Board is also responsible for implementing programmes for development of spices in North Eastern region and organic spices in the country.

The activities of the Board include issue of certificate of registration as exporter of

Chart 8.4 IndiaSpiceExportsthrough2009-10to2013-14

Chart 9.4 Trend in Export of Spices From India

0

100000

200000

300000

400000

500000

600000

700000

800000

900000

2009

-10

2010

-11

2011

-12

2012

-13

2013

-14

Year

Qty

(M.T

)

0.00

500.00

1000.00

1500.00

2000.00

2500.00

Val

ue(M

il.U

S$)

Quantity VALUE

Source:SpicesBoard

Page 20: Commodity Boards and other Development Authorities ...commerce.gov.in/pdf_download/10.Commodity Boards and other... · Commodity Boards and other Development Authorities, Institutional

196 Annual Report 2013-14

CHAPT

ER-8

spices; undertaking programmes and projects for promotion of export of spices like setting up of spices parks, support of infrastructure improvement in spices processing, assisting and encouraging studies and research on medicinal properties of spices, development of new products, improvement of processing, grading and packaging of spices; striving towards stabilization of prices of spices for export and controlling & upgrading quality for export (including setting up of regional quality evaluation labs and training centers). With regard to cardamom, registered auctioneers and dealers facilitate the domestic marketing through e-auctions. The Spices Board also does the research activities on cardamom.

export : Indian spices exports have been able to record strident gains in both volume and value terms during 2013-14. During the current year the Spices Board has shown an increase of 12% in volume and 13% in rupee terms of value compared to last year. The total estimated export of spices during the period has also crossed Rs.13,000 crore marks. The export had gone up from 5,02,750 MT valued at Rs.5560.50 crore (US$ 1173.75 million) in 2009-10 to 8,17,250 MT valued at Rs.13735.39 crore (US$ 2267.67 million) in 2013-14.

Import : The import of spices into India largely takes place for value addition and re-export except items such as clove, cassia, star anise, poppy seed, etc., which are mainly used for domestic demand. The estimated import of spices during 2013-14 was 1,25,750 MT valued Rs.2550.50 crore (US$ 421.10 million).

Production : The estimated production of cardamom (small) and cardamom (large) in

India during 2013-14 is 14795 MT and 4410 MT respectively.

Cardamom (small) : Although, there were incidences of diseases due to heavy rain all over cardamom growing tract a 6% increase in production of cardamom during 2013-14 over 2012-13 is achieved.

Cardamom (large) : Fairly humid and warm weather prevailed during this season in cardamom (large) track and with sufficient rain has resulted in marginal increase of 6% in production of cardamom (large) during 2013-14 when compared to last year.

Plan schemes of the spices Board

In the XII Five Year Plan, the on-going schemes of XIth Plan have been integrated into a single scheme titled “Export Oriented Production, Export Development & Promotion of Spices”, as a Central Sector Plan Scheme of Spices Board to be implemented from 2012-13 to 2016-17 at a cost of Rs.670.00 crores with the following five components :

table : 8.7

s. no.

Components Plan allocation

(rs. in crore)

I Export oriented production

286.00

II Export development and promotion

299.00

III Export oriented research 40.00

IV Quality improvement 35.00

V Human resource development & works

10.00

totAL 670.00

Page 21: Commodity Boards and other Development Authorities ...commerce.gov.in/pdf_download/10.Commodity Boards and other... · Commodity Boards and other Development Authorities, Institutional

CommodityBoardsandotherDevelopm

entAuthorities,InstitutionalTradeFacilitationandPublicSectorCorporations

197Annual Report 2013-14

The XII Plan scheme / programmes are visualised with the objective of enhancing spices export from the country by making in-roads into building processing capacities and capabilities, expansion of markets, increasing production and productivity of cardamom (small & large), modernising the spice cultivation and post-harvest operations thereby attracting youths to the spices cultivation, promoting organic cultivation, addressing food safety concerns of importing countries, market and productivity driven research, skill development, transfer of technology etc.

Programmes supported under Plan schemes

During 2013-14, the Spices Board spent an amount of Rs 94.34 crores on various schemes e.g. export development and promotion, export oriented research, quality improvement, and HRD & works.

a. Export oriented production and postharvest improvement of spices

The main objective of this scheme is to improve the productivity and production of cardamom (both small & large) and produce quality spices for export. During 2013-14, an area of 2125 hectares were brought under replantation of cardamom (small) with an expenditure of Rs.6.866 crore. In the case of Cardamom (large), 1045 hectares were brought under replanting with an expenditure of Rs.1.58 crore during the period under report. The Board had also continued the programmes like irrigation and land development, production of planting materials, improved cardamom curing devices, modified Bhatti etc., during the period. The post-harvest improvement

programmes for spices other than cardamom like supply of polythene sheets, IPM kits, turmeric boilers, mint distillation units, threshers for seed spices and pepper, organic cultivation of chilli and seed spices were also continued. The development programmes for lakadong turmeric, ginger, naga chilli, farmers’ study tour etc., specifically targeted for the farmers of NE were also implemented during 2013-14. In all these areas, the Board had rendered all technical guidance through field visits, farmers meetings, quality improvement training programmes, seminars etc.

b. Export development & promotion ofspices

To encourage higher end value addition in spice processing and scientific facility for ensuring quality and food safety, the market development activities of the Board have its focus on technology & process upgradation. The major thrust areas are Infrastructure development, research on new applications of spices & new product development, promotion of Indian Spice Brand abroad, setting up of Infrastructure for common cleaning, grading, processing, packing, storing facilities (Spices Park) in major spice growing/marketing centers, promotion of organic spices/GI spices etc. Special programmes are proposed for North East Entrepreneurs. The spice industry is facilitated through its Regional offices spread all over India.

The Board also undertakes programmes both within the country and abroad, the concepts and themes are highlighted through the literature that is produced. The exhibitions, field publicity programmes, campaigns, training programmes for farmers, exporters, trade and consumers require back up through

Page 22: Commodity Boards and other Development Authorities ...commerce.gov.in/pdf_download/10.Commodity Boards and other... · Commodity Boards and other Development Authorities, Institutional

198 Annual Report 2013-14

CHAPT

ER-8

literature to be produced in various Indian and international languages.

The Board participates in international trade fairs every year. During the year 2013-14, Board participated in 13 international exhibitions. Registered spice exporters were encouraged to co-participate through the Boards stall and promote spices and spice products.

c. export oriented research

Cardamom (small)

In small cardamom, research programmes are envisaged on varietal improvement, bio technological interventions. Integrated nutrient / pest and disease management. The national repository for cardamom genetic resources maintained in the Institution conserves 800 small cardamom accessions and 12 allied genera and carried out the trials on performance evaluation of different cardamom clones under the Co-ordinated Varietal Trial of All India Co-ordinated Research Project on Spices (AICRPS), evaluation of released varieties of black pepper, hybridization and their evaluation in small cardamom etc. Multiplied the released / landraces / improved varieties of small cardamom & different herbal spices such as rosemary, thyme, celery, mint, oregano, horse radish, salvia etc., for supplying to the needy growers. Studies on the management of rot diseases in cardamom were under taken in various locations in the cardamom tract.

As part of advisory services, 1835 soil samples were analyzed for nutrient status and given recommendations for fertilizer application. Farm gate level cardamom samples (121) collected from different zones of cardamom

tracts were subjected to oil profile and pesticides residue studies. As part of Transfer of Technology, organized 19 training programmes on production technology of cardamom and black pepper apart from ten spice clinics / scientist farmers interface.

Cardamom (large): Spices Board undertook various studies and researches during the year in relation to the large cardamom e.g. Germplasm survey in West Sikkim, diversity studies on 50 accessions including all released varieties, response of large cardamom to foliar application of Zinc, manganese and magnesium, alternate host for major pests of large cardamom, and disease survey in 48 numbers of large cardamom plantations covering sixteen locations. Nine training/awareness programme on various aspects of large cardamom cultivation were also conducted for farmers / extension officers.

d. Quality improvement and strengthening of quality evaluationlaboratory

The Quality Evaluation Laboratory of the Spices Board provides analytical service to the spice industry and monitors the quality of spices produced and processed in the country. It also undertakes the analysis of consignment samples under the mandatory inspection of Spices Board. During 2013-14 the laboratory analysed 83,671 Samples for various parameters including pesticide residues, Aflatoxin, illegal dyes etc. in chilli and chilli products. The laboratory conducted 4 training programs on the analysis of “Spices and Spice products” for Physical, Chemical, Residual and Microbiological parameters , and a total of 64 members including technical personnel from various Spice Industries,

Page 23: Commodity Boards and other Development Authorities ...commerce.gov.in/pdf_download/10.Commodity Boards and other... · Commodity Boards and other Development Authorities, Institutional

CommodityBoardsandotherDevelopm

entAuthorities,InstitutionalTradeFacilitationandPublicSectorCorporations

199Annual Report 2013-14

IPC & FSSAI (state Govt. Labs) attended the program.

During the year, the Regional Quality Evaluation Laboratory at Chennai got the NABL accreditation. Thus, 4 of Spice Board’s Quality Evaluation Laboratorie snow have the NABL Accreditation and two others are in the process of getting the accreditation.

e. Human resource development &capital works

Regular training and retraining of the staff of the Board in their functional areas, training on cultivation aspects, post harvest handling, processing etc., to growers and exporters in the spice industry are programmes under the scheme. Capital works including new construction, maintenance of Board’s own building etc. are also envisaged under the programme.

f. Replantation and rejuvenation ofpepper inWayanad district in Keralaand ne

The scheme for development of pepper in Wayanad district of Kerala & North Eastern States was sanctioned by Ministry during October 2009. During 2013-14 an area of 3023 ha & 602.66 ha was covered under replantation / rejuvenation programme at Wayanad district in Kerala and in NE states respectively. Since inception, an area of 15291.31 ha & 2269.79 ha has been replanted in Wayanad & NE states respectively under the programme. The programme of pepper production in Wayanad district of Kerala and NE has been discontinued from 2014-15.

g. Project under National HorticultureMission for development of pepper in IdukkidistrictofKerala

As an agency concerned about the plight of Indian pepper industry and in response to the invitation from various quarters of the industry and directions from the Ministry of Commerce, Spices Board had worked out a proposal on production development of pepper in Idukki District of Kerala in line with NHM guidelines with financial assistance from NHM. The project had been approved for implementation for a period of 5 years from 2009-10 at a total outlay of Rs.230.58 crores with assistance from NHM to the tune of Rs.120.00 crores. Since inception, 21396 Ha have been brought under replantation/rejuvenation under the project. During 2013-14, the fund of Rs.8.00 crores allocated by the NHM was utilized for clearing the backlog payments to farmers.The pepper development programme in Idukki district of Kerala has been completed as on March 2014.

Majorinitiativesin2013-14: Major initiatives taken by the Spices Board during the year included setting up of Spices parks in various states, establishing regional Quality Evaluation Laboratories at Mumbai, Delhi, Chennai, Guntur and Tuticorin, initiating electronic auction for cardamom, organising World Spices Congress in India, G I certification for specific spices, and constitution of a Codex Committee on Spices at India’s behest.

spices Park : The Spices Board is in the process of establishing crop specific Spices Parks in major production/market centers. The Board

Page 24: Commodity Boards and other Development Authorities ...commerce.gov.in/pdf_download/10.Commodity Boards and other... · Commodity Boards and other Development Authorities, Institutional

200 Annual Report 2013-14

CHAPT

ER-8

has completed the establishment of Spices Park at Chhindwara (Madhya Pradesh), Puttadi (Kerala), Jodhpur (Rajasthan), Guna (Madhya Pradesh), Sivaganga (Tamil Nadu) and Guntur (Andhrapradesh) are completed. The establishment of Spices Park at Kota (Rajasthan), Rae Bareli (UP) are in progress.

Primary objective of establishing Spices Park is to empower the farmers with better price realization and wider markets for their produce. The farmers can utilize the common infrastructure facilities for cleaning, grading and steam sterilization which will ensure the quality of the product and thus a higher price. The scientific packing and warehousing facilities in the park and the quality testing facility in the laboratory will improve the overall quality of spices produced in the locality. Spices Park is a well-conceived approach to have an integrated operation for cultivation, post harvesting, processing for value-addition, packaging and storage of spices and spice products.

Regional Quality Evaluation Laboratories:The Central Quality Evaluation Laboratory of the Board at Cochin has been extending its activities to accommodate more samples for analysis of various parameters. In addition to this, regional laboratories have been set up in Mumbai, Delhi, Chennai, Guntur and Tuticorin. The establishment of the Quality Evaluation Lab at Kolkatta and Kandla are in progress. All the regional quality evaluation laboratories of the Board are established under the financial assistance from ASIDE scheme. All the labs are working successfully on an average around 90000 samples are handled by these labs.

Electronic auction for cardamom : The Board had established E-auction system for cardamom (small) in Puttady (Kerala) and Bodinayakanur (TN). The e-auction system established by the Board for cardamom (small) is working successfully. In addition to the e-auction system, there are manual auction centres established in the states of Karnataka & Mumbai. Cardamom (large) auctions are being conducted in Sikkim.

Registration & Licensing : As a regulatory body, Spices Board has been issuing Licenses for Cardamom Auctioneers and Dealers and Certificate of Registrations to the exporters of Spices. These Licenses and Certificates are issued for a block period of three years. During the year 2013-14, licenses were issued to 55 Cardamom Dealers and to four Cardamom Auctioneers. 1266 Certificates of Registrations were also issued to spices exporters during the same period. During the year, auctioneer license was issued to the State Trading Corporation, in the place M/s. STCL who has discontinued the business.

exporter Award : Spices Board has instituted Export Awards & Trophies to honor the exporters of spices who have excelled in their exports of spices in various categories every year. Shri. Anand Sharma, Hon'ble Union Minister for Commerce and Industry, gave away the Trophies/ Awards and Citations to the exporters for years 2009-10, 2010-11 & 2011-12 in a function organised on 26th April, 2013 at Trivandrum.

International Cooperation: Establishmentof CtC Cell : Food safety and supply chain management are matters of concern all over the world. With new stringent legislation

Page 25: Commodity Boards and other Development Authorities ...commerce.gov.in/pdf_download/10.Commodity Boards and other... · Commodity Boards and other Development Authorities, Institutional

CommodityBoardsandotherDevelopm

entAuthorities,InstitutionalTradeFacilitationandPublicSectorCorporations

201Annual Report 2013-14

being adopted in importing countries, implementation of Food Safety in supply chain management in spices has become matter of paramount importance. In order to address this challenge of quality and food safety, the Spices Board in collaboration with Joint Institute for Food Safety and Applied Nutrition (JIFSAN), University of Maryland, USA and Confederation of Indian Industries-Food and Agriculture Center of Excellence (CII-FACE) has established a Collaborative Training Center (CTC) for capacity building on food safety in the supply chain management in spices and botanical ingredients and planned three phase training programme. During the year 2013-14, CTC cell conducted training programmes in Sikkim, Mizoram and Kerala for over 210 participants.

signature stall : A Spice signature Stall was opened at Cochin at Lulu Shopping Centre

for selling Indian spices and spices products under the 'Flavouit' brand recognition. This shop is also a resource centre for Indian spices from where the local and the visiting tourists can gather information and realise the various nutraceutical, health applications of spices and its products. The main objective of the stall is to sell the farmers' produce directly through the stall thereby avoiding the many stages of middlemen.

training to ne entrepreneurs : In order to create awareness on Spice Export business opportunities among the domestic spice traders and the educated youths of North Eastern States, Spices Board in collaboration with Indian Institute of Entreprenurs, conducted a two days Training program on 'HOW TO START SPICES EXPORT BUSINESS FROM N.E' for the entrepreneurs and other food industry segments in Assam, Arunachal

PresentationofTrophies&AwardsforexcellenceinExportsofspicesandproductivityofcardamom&vanillaheldon26thApril2013atKovalam,Trivandrum–ShriAnandSharma,Hon'bleUnionMinisterofCommerce&Industryaddressingthegathering

Page 26: Commodity Boards and other Development Authorities ...commerce.gov.in/pdf_download/10.Commodity Boards and other... · Commodity Boards and other Development Authorities, Institutional

202 Annual Report 2013-14

CHAPT

ER-8

Pradesh, Meghalaya, Nagaland & Tripura during 2013-14 period.

IIPM study on revamping Cardamom marketing system : With an objective to revamp the prevailing marketing system of cardamom in India, the Board had entrusted Indian Institute of Plantation Management to conduct a study on the Movement of Cardamom with respect to Domestic Market structure, growth and future scenario. The final report on the study was submitted in September, 2013.

wto Chair on spices : In order to facilitate global spice trade and to deal with the trade negotiations with multilateral, regional and bilateral trade bodies, the Board needs to have frequent interfaces with WTO in its day-today activities. For preparation of country dossiers and to deal with the WTO matters and to provide advice to Spices Board, a WTO Chair on Spices has been set up at the Department of International Relations Central University of Kerala, Kasargodu. The Chair comprises a Chair Professor, one Research Officers and two Research Assistants.

ConstitutionofCodexCommitteeonSpices& Culinary Herbs : Following India’s lead,

the Codex Alimentarius Commission (CAC) agreed, at its 36th session held at Rome from 1-5 July, 2013, to form an exclusive Codex Committee on Spices and Culinary Herbs (CCSCH) with a view to elaborate worldwide standards for spices and culinary herbs in their dried and dehydrated state in whole, ground, and cracked or crushed form, and to consult, as necessary, with other international organizations in the standards development process to avoid duplication. India has now initiated strategies for harmonization of global standards for quality parameters in spices and culinary herbs taking into consideration the international and national legislations and other available standards and specifications.

The Spices Board India hosted the first Session of the Codex Committee on Spices and Culinary Herbs (CCSCH1) from 11th -14th February 2014 in Kochi, Kerala. In just seven months after the formal approval, the Secretariat of the CCSCH operating from the Spices Board could rope in the participation of many countries from far and wide, bringing to its fold 107 delegates from 40 countries and seven observer organizations in close liaison with the Codex Secretariat in Rome and the National Codex Contact Point of India

InauguralSessionofCCSCH-1 CCSCH in Session

Page 27: Commodity Boards and other Development Authorities ...commerce.gov.in/pdf_download/10.Commodity Boards and other... · Commodity Boards and other Development Authorities, Institutional

CommodityBoardsandotherDevelopm

entAuthorities,InstitutionalTradeFacilitationandPublicSectorCorporations

203Annual Report 2013-14

in FSSAI. An exclusive website for the CCSCH- www.ccsch.in has also been created.

GI Registration of Spices : Spices Board has obtained Geographical Indication (GI) registration for Byadagi chilli. This is in addition to the GI registration obtained for Malabar Pepper, Alleppey Green Cardamom, Coorg Green Cardamom and Guntur Sannam chilli.

world spice Congress : The XII World Spice Congress was conducted at Cochin during 16 – 19th February 2014 with the theme of ‘Sustainability and Food Safety: Global Initiatives’. 275 overseas delegates and 410 Indian delegated were participated in the Congress. The congress bring together global thought leaders policy defining body as well as leading players from the spice cropping industry came into one global platform.

Price Stabilisation Fund Scheme forPlantationcrops

Price Stabilisation Fund (PSF) Scheme was launched by Government of India in April 2003 for an initial period of 10 years, against the backdrop of decline in international and domestic prices of tea, coffee, rubber and tobacco causing distress to primary growers. The growers of these commodities were particularly affected due to substantial reduction in unit value realization for these crops, at times falling below their cost of production. The objective of the Scheme is to safeguard the interests of the growers of these commodities and provide financial relief when prices fall below 20% of the moving average of 7 years’ international prices.

enrolment of Growers : Out of the total target of 12.77 lakh growers (growers having

Shri.J.S.Deepak,AdditionalSecretary,MinistryofCommerce&IndustryinauguratestheWSC–2014

Page 28: Commodity Boards and other Development Authorities ...commerce.gov.in/pdf_download/10.Commodity Boards and other... · Commodity Boards and other Development Authorities, Institutional

204 Annual Report 2013-14

CHAPT

ER-8

landholding up to 4 ha), the total enrolment under the Scheme is 46,243, out of which 18,919 are rubber growers, 11,594 coffee growers and 15,730 tea growers. Tobacco growers did not join the Scheme.

PsF Corpus Fund as on 31.03.2014 : PSF Scheme originally envisaged a Corpus Fund of 500 crores, out of which Rs. 482.88 crore was to be contributed by Government of India and Rs. 17.12 crore by the growers by way of non-refundable entry fee. As on 31 March 2014, deposits in the PSF Corpus Fund including net accrued interest were Rs 918.10 Crores out of

which Rs 432.88 crore had been contributed by GOI, Rs. 2.67 crores by Growers by way of entry fee and Rs. 482.55 crore is accrued interest.

Announcement of Price spectrum Bands: Since the launch of the Scheme in April 2003, the PSF Trust has announced Price Spectrum Bands for 2003, 2004, 2005, 2006, 2007, 2008, 2009, 2010, 2011 and 2012. The likely financial assistance under PSB 2003 through PSB 2012 stood at 6.22 crore against which Rs 1.53 Crore was released to eligible growers.

table: 8.8 YearwisePriceSpectrumBandandCumulativecommittedFinancialAssistance

(Rs in crore)

Commodity PsB 2003

PsB 2004

PsB 2005

PsB 2006

PsB 2007

PsB 2008*

PsB 2009

PsB 2010*

PsB 2011

PsB 2012*

total

Rubber 0 0 0 0 0 0 0.95 0 0 0 0.95Coffee 0.82 0.58 0 0 0 0 0 0 0 0 1.40Tea 0.09 0.73 0.74 0.75 0.77 0 0 0 0.79 0 3.87Total 0.91 1.31 0.74 0.75 0.77 0 0.95 0 0.79 0 6.22*boomyearforallcrops

Personal Accident Insurance scheme (PAIs) : A Personal Accident Insurance Scheme having a cover of 25,000 was started for the growers of Tea, Coffee, Rubber and Tobacco from 1.1.2005. The scheme covered the growers in the sectors of Tea, Coffee, Rubber and Tobacco and Spices (chillies, cardamom, ginger, turmeric and pepper) having plantations up to 4 hectares and all plantation workers working on these plantations regardless of the size of holdings. The insurance cover under the scheme is up to Rs. 1.00 lakh per person, the premium for which at Rs. 22.06 is shared between the beneficiary and the PSF Trust in the ratio of 50:50.An amount

of Rs. 42.24 lacs has been released towards premium under PAI Scheme providing personal insurance cover to 457772 growers/workers (Cumulative including renewals each year) since its inception in 2005. During 2013-14, the Scheme was implemented for a short period upto 30.09.2014 and an amount of Rs 1.20 lacs was released as matching premium to cover 10913 eligible growers and workers from the sectors of Tea, Coffee and Tobacco.

ModifiedPSFScheme: The approved period of the PSF Scheme concluded on 30.09.2013 (with an extended period of six months). Following extensive consultations, an exercise

Page 29: Commodity Boards and other Development Authorities ...commerce.gov.in/pdf_download/10.Commodity Boards and other... · Commodity Boards and other Development Authorities, Institutional

CommodityBoardsandotherDevelopm

entAuthorities,InstitutionalTradeFacilitationandPublicSectorCorporations

205Annual Report 2013-14

has now been initiated with a view to modify the existing Price Stabilisation Fund Scheme and evolve a comprehensive insurance based scheme that could mitigate both, the price and production risks faced by the growers.

the Agricultural and Processed Food Products export Development Authority (APeDA)The Agricultural and Processed Food Products Export Development Authority (APEDA) was established by the Government of India under the Agricultural and Processed Food Products Export Development Authority Act passed by the Parliament in December, 1985. The Authority, with its headquarters at New Delhi, is headed by a Chairperson. APEDA has been serving the agri-export community for 27 years. In addition to 5 Regional offices, APEDA has setup 13 Virtual Offices at Thiruvananthapuram (Kerala), Bhubaneshwar (Orissa), Srinagar (J&K), Chandigarh, Imphal (Manipur), Agartala (Tripura), Kohima (Nagaland), Chennai (Tamil Nadu), Raipur

(Chattisgarh), Ahmedabad (Gujarat), Bhopal (Madhya Pradesh), Lucknow (Uttar Pradesh) and Panaji (Goa). APEDA has been entrusted with the responsibility of export promotion and development of 14 agricultural and processed food product groups listed in the Schedule to the APEDA Act. In addition to this, APEDA has been entrusted with the responsibility to monitor the import of sugar as well.

APEDA has been actively engaged in the development of markets besides upgradation of infrastructure and quality to promote the export of agro products. In its endeavour to promote agro exports, APEDA provides financial assistance to the registered exporters under its Schemes for Market Development, Infrastructure Development, Quality Development and Transport Assistance.

export Performance:The export of APEDA products for the period April-March 2013-14 is as below:

table: 8.9 Value Rs. in Lakhs

Product Group Export2012-13 Export2013-14 Growth in %Floriculture & Seeds 77116.98 85867.42 11.35Fruits & Vegetables 658345.70 948173.83 44.02Processed Fruits & Vegetable 436841.74 560994.81 28.42Livestock Products 2013210.55 3151939.33 56.56Other Processed Foods 3227708.92 2428955.01 -24.75Basmati Rice 1940938.89 2930012.11 50.96Non-Basmati Rice 1444880.64 1749316.24 21.07Wheat 1052900.19 925710.59 -12.08Other Cereals 818061.46 713237.03 -12.81

total 11670005.06 13494206.37 15.63

Source:DGCIS–Principalcommoditiesdata

Page 30: Commodity Boards and other Development Authorities ...commerce.gov.in/pdf_download/10.Commodity Boards and other... · Commodity Boards and other Development Authorities, Institutional

206 Annual Report 2013-14

CHAPT

ER-8

The provisional export data for the period April-March, 2013-14 shows an overall positive growth of 15.63% over the same period of previous year.

APEDASCHEMES:

On the advice of the Planning Commission, the five XI Plan Schemes of APEDA have been integrated into a single scheme titled “Agriculture Export Promotion Plan Scheme of APEDA” for implementation during XII plan. The main objective of the scheme is to enhance the capability of Indian exporters of agro products and supporting them in realizing their export potential. The benefit of the scheme would help in catalyzing the efforts of the exporting community through need based interventions by APEDA at each stage of the supply chain. The Scheme has following components:

- Scheme for Market Development - Scheme for Infrastructure

Development - Scheme for Quality Development - Transport Assistance SchemeThe Government has approved the above plan scheme for the XII plan period at projected outlay of Rs. 1100 crores.

InFrAstrUCtUre DeveLoPMentAL ACtIvItIes:

• The project of M/s. Maharashtra State Agricultural Marketing Board (MsAMB), Pune for setting up of common infrastructure facility for fresh fruits and vegetables and trade facilitation centre at APMC, Vashifor financial assistance of rs. 247.80 lakhs has been sanctioned for the current financial year.

• The project of M/s. Gujarat State Agricultural Marketing Board (GsAMB), Gandhinagar for setting up of processing facility for export of mango pulp at Kodinar for financial assistance of rs.800.00 lakhs has been sanctioned for the current financial year.

• The project of M/s. Assam State Agriculture Marketing Board, (AsAMB) Assam for establishment of Pack House for fruits and vegetables at Karimganj District, Assam for financial assistance of rs.800.00 lakhs has been sanctioned for the current financial year.

• The project of M/s. Punjab State Cooperative Supply and Marketing Federation Limited (MARKFED), Chandigarh for setting up of modern food processing complex at Markfed canneries, Chuharwali Village, District Jalandhar, Punjab by Markfed, Chandigarh for financial assistance of rs.1000.00 lakhs has been sanctioned for the current financial year.

• The project of M/s. Gujarat State Agricultural Marketing Board (GsAMB), Gandhinagar for setting up of common infrastructure project for processed foods at Gandevi, Gujarat for financial assistance of rs.800.00 lakhs has been sanctioned for the current financial year.

• The project of M/s. Tamilnadu Horticulture Development Agency (TANHODA), Chennai for setting up of IQF Plant at State Horticulture Farm, Neejur, Krishnigiri for financial assistance of rs.742.00 lakhs has been sanctioned for the current financial year.

Page 31: Commodity Boards and other Development Authorities ...commerce.gov.in/pdf_download/10.Commodity Boards and other... · Commodity Boards and other Development Authorities, Institutional

CommodityBoardsandotherDevelopm

entAuthorities,InstitutionalTradeFacilitationandPublicSectorCorporations

207Annual Report 2013-14

• The project of M/s. Maharashtra State Warehousing Corporation (MswC), Pune for setting up of cold storage in Gultekdi, Pune, Maharashtra for financial assistance of rs.800.00 lakhs has been sanctioned for the current financial year.

• The project of M/s. Maharashtra State Warehousing Corporation (MswC), Pune for setting up of cold storage facility in Koregaon, Distt. Satara, Maharashtra for financial assistance of rs. 588.09 lakhs has been sanctioned for the current financial year.

• The project of M/s. Krishi Utpadan Mandi Parishad (KUMS) for setting up of processing unit for export of frozen fruits and vegetables with IQF at Spices Park, Rampur Kalan, Sahaspur, Dehradun, Uttarakhand for financial assistance of rs.800.00 lakhs has been sanctioned for the current financial year.

• The project of M/s. Krishi Utpadan Mandi Parishad (KUMS) for setting up

of CA Store at Bhatwari, Uttarkashi for financial assistance of rs.687.46 lakhs has been sanctioned for the current financial year.

QualityDevelopmentalActivities:

1) RecognitionoflaboratoriesandHACCPimplementation and certificationagencies

a) 24 laboratories were recognized including four newly recognized laboratories for sampling and analysis of APEDA scheduled products for exports. 4 recognized laboratories in the private sector and 1 National Referral Laboratory at NRC Grapes Pune were upgraded with high precision analysis equipments.

b) 8 certification agencies and 3 implementation agencies were recognized for certification and implementation of HACCP during the period.

Mechanized Tapping Knife Development – Cash award distributed to four bestinnovators

Page 32: Commodity Boards and other Development Authorities ...commerce.gov.in/pdf_download/10.Commodity Boards and other... · Commodity Boards and other Development Authorities, Institutional

208 Annual Report 2013-14

CHAPT

ER-8

2) Procedures of exports through control of agrochemicalresiduesandaflatoxins:

a) Procedures of export of fresh table grapes to the European Union through control of residues of chemicals to ensure food safety compliances for the export season 2013-14.

b) Procedures for control of aflatoxins for exports of peanuts and peanut products from India to ensure food safety compliances of the importing countries.

c) Procedure for issue of Health Certificate for exports of okra to EU.

3) Proceduresofrecognitionofprocessingunits:

a) Procedure for grant of recognition certificate to peanut processing units for export of peanuts.

b) Procedure for grant of recognition certificate to peanut shelling & or grading units for export of peanuts.

c) Procedure for grant of recognition certificate to godowns/storage for export of peanuts.

4) Standardizationandharmonization:

a) Grading and Marking Standards of eight fruits and vegetables were developed totaling 51 Grading and Marking Standards for fruits and vegetables under Agmark. Three draft standards are in process of development and are at the stage of discussions with the stakeholders during period under report.

b) Contributed to national interpretation of Good Agricultural Practices (GAP) and

Global GAP being a member of National Technical Working Group of Quality Council of India.

c) Participated in 7th Session of Codex Committee on Contaminants in Food Moscow 8-12 April 2013. Initiated new work proposals on establishments of aflatoxins levels and methods of sampling and analysis in ready-to-eat peanuts.

Participation In International & Nationalevents:

summer Fancy Food show, washington DC, UsA from 30th June to 2nd July 2013: APEDA participated in the Summer Fancy Food Show held in Washington DC, USA from 30th June to 2nd July 2013and taken an area of 2000 sq.ft. Eleven exporters participated under the banner of APEDA

Africa Big seven/saitex, Johannesburg, south Africa from 30th June to 2nd July, 2013: APEDA participated in the Africa Big Seven/Saitex, Johannesburg, South Africa from 30th June to 2nd July, 2013 with a total space of 54 sq. mtrs. Ten exporters participated in the event and displayed their product samples. APEDA displayed a range of food products which included basmati rice, fresh mangoes, processed foods, pickles and chutney, snack foods, etc. APEDA organized promotion of Indian Basmati Rice and fresh mangoes.

12th Pro-Food/Pro-Pack and Ag-Biz 2013, Colombo, sri Lanka from 23rd to 25th August, 2013 : APEDA participated in 12th Pro Food/Pro Pack show at the Srinimavo Bandaranaike Memorial Exhibition Centre, Colombo, Sri Lanka from 23rd to 25th August, 2013.

Page 33: Commodity Boards and other Development Authorities ...commerce.gov.in/pdf_download/10.Commodity Boards and other... · Commodity Boards and other Development Authorities, Institutional

CommodityBoardsandotherDevelopm

entAuthorities,InstitutionalTradeFacilitationandPublicSectorCorporations

209Annual Report 2013-14

Abastur, Mexico from 26th to 29th August, 2013: APEDA participated in Abastur, Mexico from 26th 29th August, 2013and taken 100 sq. mtr. area. Ten exhibitors personally participated under the banner of APEDA.

Food and Hotel 2013, Bangkok, Thailandfrom 4th to 7th september, 2013: APEDA participated in Food and Hotel 2013, Bangkok, Thailand from 4th to 7th September, 2013. APEDA booked 90 sq. mtr. space and eight exporters participated in the event. Six leading exporters sent their product samples for display. Ministry of Food Processing Industries also participated with APEDA in the event.

saudi Agro Food, riyadh, saudi Arabia from 15th to 18th september, 2013: APEDA participated in Saudi Agro Food exhibition from 15th to 18th September, 2013. APEDA has taken an area of 150 sq. mtr. at a strategic location

AnUGA 2013, Cologne, Germany from 5th to 9th october, 2013: APEDA actively participated in ANUGA 2013, the largest food exhibition in the world, held from 5th to 9th October, 2013in Hall No. 11.3. APEDA showcased India through the aesthetically designed pavilion of 1,538 sq. mtr. which attracted a large number of trade visitors and entrepreneurs. More than 70 companies participated and displayed their products in the exhibition

Food&HotelChina (FHC),Shanghai,Chinafrom 13th to 15th november, 2013: APEDA participated in the FHC, China held from 13th to 15thNovember, 2013. APEDA represented India with five exporters and trade association that displayed a range of food products like,

animal products, processed foods, pickles and chutneys, snacks etc.

sIAL Middle east 2013, Abu Dhabi, UAe from 24th to 26th november, 2013: APEDA represented India for the first time with 18 exporters and two trade bodies in the event.

Developmental Activities In OrganicPromotion:

Organic farming in India has grown at a steady pace after the implementation of NPOP in 2001 by the Ministry of Commerce and Industry. Today India organic products have made their mark in the global market and are poised to reach new heights.

Area and production under OrganicCertification

During 2013-14, area under organic certification was around 5.33 million ha (till 15 Dec 2013)including the forest area of 4.57 million ha. The total organic production was 0.63 million MT (till 15 Dec 2013)

Majorproductsexported

During the year 2013-14, India had exported 135 agricultural and food products under 19 Categories realizing value of Rs. 845.20 Crores till 15 Dec 2013. The volume of total organic products was 115559.325MT

The major countries where organic products were exported were European Union followed by USA and Canada. The other destinations of export of organic products were Switzerland, UAE, Australia, Middle East countries and Asian countries.

The major products exported were Tea, Pulses,Sugar, Basmati Rice, Oilseeds (Sesame,

Page 34: Commodity Boards and other Development Authorities ...commerce.gov.in/pdf_download/10.Commodity Boards and other... · Commodity Boards and other Development Authorities, Institutional

210 Annual Report 2013-14

CHAPT

ER-8

Soyabean), Spices, Cotton, Medicinal Plants, Processed Food and Dry Fruits.

new standards in the area of Aquaculture, Textiles&AnimalHusbandryUnderNPOP

The standards for Aquaculture, Animal Husbandry & Textiles under NPOP are approved by full term NSC and are expected to be notified by DGFT shortly.

ParticipationinInternationalOrganicTradeFairs

APEDA has been participating and representing as India Pavilion in Biofach Germany since 2001 to promote export of organic products. This year also, APEDA participated in BioFach Germany 2013 held from 13-16 February 2013 at Nuremberg Messe, Nuremberg, Germany. APEDA had booked 561 sq. mts. Indian Pavilion was designed with the aim of promoting India’s brand image specific to organic products. Indian pavilion was well constructed, decorated and brightly lit and was appreciated by all the visitors.

34 exporters exhibited their organic products under the Indian pavilion along with Tea Board of India and Spices Board. Other state Government departments i.e. Department of Agriculture, Karnataka and Uttarakhand Commodity Board also participated in India Pavilion.

strengthening of tracenet, a web based traceability system developed for organic products

After the implementation of Tracenet in June 2010, authentic information related to production, certification and export of organic products could be provided. During the year

2013-14, monitoring through tracenet was further strengthened. Several measures were taken to ensure credibility of export of Organic products.

Developmental Activities In North Eastregion:

export Development Fund For north Eastern Region (EDF-NER) : Following the announcements made by the Prime Minister in respect of measures the development of exports from the North-Eastern region in Shillong on January 21-22, 2000, an Export Development Fund (EDF) has been set up with the objective of using the resources for the development of exports from the region. The objective of the scheme is to assist specific activities for promotion of exports from the North-Eastern region of the country including Sikkim. All activities, which have a linkage with the exports from the region and are designed to help exports, shall be eligible for assistance from the fund. The scheme covers Setting up of pioneering/pilot projects aimed at exports , Provision of equipment and machinery for the pioneering pilot projects aimed at exports , Creation of Common facilities for facilitating exports ,Facility for testing and standardization as well as quality improvement of export products, Funding related to the exchange of trade delegations, Any other activity as notify by the department of Commerce having a bearing on export promotion in the North-East. The eligible agencies include Central/State Governments, Public Sector undertakings of Central/State Government, Other agencies of Central/State Governments, Export Promotion Councils/Commodity Boards, Apex Trade bodies recognized under

Page 35: Commodity Boards and other Development Authorities ...commerce.gov.in/pdf_download/10.Commodity Boards and other... · Commodity Boards and other Development Authorities, Institutional

CommodityBoardsandotherDevelopm

entAuthorities,InstitutionalTradeFacilitationandPublicSectorCorporations

211Annual Report 2013-14

the EXIM policy of Government of India and other apex bodies recognized for this purpose by the Empowered Committee set up for the purpose and Individual Production/Service Units dedicated to exports. The major criterion for eligibility for the projects is that the proposal must show a direct linkage with the exports from the region and should be desired to help exports from the North-Eastern Region.

Fund released: So Far DoC had placed an amount of Rs 58.70 Crs at the disposal of APEDA of which 61 projects have been funded to the tune of Rs. 52.60 Crs including assistance extended to exporters on Inland Transport Assistance scheme for the North Eastern Region.

It related achievements:

1. As per the DGFT Notification no. 28 (RE-2012)/2009-2014 dated 3rd January, 2013 export of Groundnuts (Peanut) is permitted subject to compulsory registration of contract with APEDA, along with controlled aflatoxin level certificate given by the Laboratories authorized by APEDA. The Peanut.net Traceability System was updated as per the procedure laid down in APEDA to accommodate quality requirements for export of PPP to all the countries.

2. Transport Assistance web based software for the disbursement of APEDA scheme has been suitably modified to accommodate charges made in XII Plan. The application software was updated with additional features like processing of files in FIFO method and payment of subsidy claim through RTGS in order to speedy disbursement of the claim.

3. The Grapenet system was updated with the latest list of Pesticides and Agro chemicals residues testing of Grapes consignments for EU for the year 2013-14.

OtherSectoralDevelopmentalActivities:

HorticultureSector:

Success has been achieved in opening up the Chilean market for Indian grapes and walnuts during the year. This opens up avenues for exporters for the 2014 season.

Regular follow up with Ministry of Agriculture and USDA-APHIS regarding the PRA for market access for Pomegranates to USA with Irradiation as a mitigation measure.

For market access for Indian table grapes in Australia, the Pest Risk Analysis (PRA) has reached an advanced stage and it is hoped that by the end of this year final notification by Australia may be issued.

Follow up has been done on market access requests for Walnut, grapes, pomegranates, okra and brinjal in South Korea, Grapes, Walnuts, Banana and Litchi in Chile, Pomegranate and okra in New Zealand and Grapes to Vietnam.

No incidence of excedence of any pesticide residue tolerance was reported during the grape season 2013. To make the “Grapenet” traceability System more robust, consultations with trade and stakeholders were held and the RMP document was modified to include 181 agro chemicals for testing prior to shipments to EU for the 2014 season.

There were reported instances of exceedence of MRLs in green chilli in Saudi Arabia. The

Page 36: Commodity Boards and other Development Authorities ...commerce.gov.in/pdf_download/10.Commodity Boards and other... · Commodity Boards and other Development Authorities, Institutional

212 Annual Report 2013-14

CHAPT

ER-8

Saudi Arabian Government has imposed testing for MRLs as mandatory for shipments from India. APEDA has issued advisory to this effect on its website for the general information of exporters.

Due to repeated detection of exceeding levels of residues of pesticides in Okra and curry leaves consignments from India to the EU, Council Regulation NO 91/2013 dated 31.01.2013 imposing requirement of Health Certificate conforming that all consignments of okra from India to EU comply with the maximum residue levels (MRLs) of agrochemicals, was issued by the European Commission. Directorate of Marketing & Inspection (DMI), vide order No. Q.11013/1/GA/VG/07-QC dated 05.03.2013 authorized designated officials of the laboratories to issue CAG as well as Health Certificate for export of okra consignments to EU. Accordingly APEDA issued a Trade Notice No: APEDA/FV/Q/2013 Dated: 07.03.2013 outlining the complete procedure to be adopted for export of Okra to the EU countries. The situation has dramatically improved and there are now no complaints in this regard.

Livestock sector:

• India exported 1.1 million tones of deboned deglanded buffalo meat amounting to Rs. 17412.89 crores worth of foreign exchange in the year 2012-13 and is likely to export 1.3 million tonnes in the year 2013-14.

• APEDA has taken efforts for opening up new markets to Russia, Kazakhstan, Belarus, China, Indonesia and increased exports to newly opened markets of Tunisia and Libya.

• Continued efforts for getting market access for exports in wet market of Philippines and Iran.

• Handled issues related to export of frozen buffalo meat in the existing markets of Egypt, Jordan, Saudi Arabia, Malaysia, Algeria etc.

• Successfully handled

o Egypt delegation from 11th June to 4th July 2013 for inspection of abattoir-cum-meat processing plants and got approval for 22 Nos. of plants for export of boneless frozen buffalo meat to Egypt.

o And Jordan delegation from 7th to 18th June 2013 for compliance and review audit and got approval for 17 no. of plants for export of boneless frozen buffalo meat to Jordan.

• Visit of Plant Registration Committee was coordinated by APEDA for inspection of various meat plants for renewal/registration of abattoir/integrated plants/meat processing plants for exports.

• In view of the increased emphasis on human, animal and plant health and safety aspects in the global markets, a number of steps were initiated to improve capabilities for meeting these quality requirements as per the notified standards. HACCP or Food Safety management system was made mandatory for meat processing plants.

• Successfully resolved issues faced by honey exporters in USA.

• Resumed exports of poultry products in Oman, UAE, Kuwait and SAARC countries on the basis of compartmentalization despite bird flu.

Page 37: Commodity Boards and other Development Authorities ...commerce.gov.in/pdf_download/10.Commodity Boards and other... · Commodity Boards and other Development Authorities, Institutional

CommodityBoardsandotherDevelopm

entAuthorities,InstitutionalTradeFacilitationandPublicSectorCorporations

213Annual Report 2013-14

• A team consisting of representative of Ministry of Agriculture of Georgia, Dr. Mikheil Sokhadze, Chief Veterinary Officer and Dr. Paata Khurdadze from Feed Inspectorate Department carried out on the spot inspection of selected Integrated Abattoirs and Meat Processing Plants in India.

• Memorandum of Understanding has been signed between APEDA, Ministry of Commerce & Industry, Govt. of India and The General Administration of Quality Supervision, Inspection and Quarantine People’s Republic of China(AQSIQ) signed on 20th May 2013 in order to ensure quality and safety of buffalo meat to be exported from India to China and to initiate export of for export of deboned and deglanded frozen buffalo meat to China. A team of delegation comprising of Joint Secretary, MoC&I, Additional Economic Advisor, MoC&I, Secretary, APEDA, Joint Commissioner DAHD & 14 delegates from meat industry visited China to initiate the implementation of MOU.

• Restriction imposed on import of frozen buffalo meat from India on account of alleged FMD outbreak reported in the Annual Report 2012 of OIE / FAO FMD reference laboratory network, Pirbright, U.K. APEDA’s intervention had opened up the Tajikistan market.

Specialsteps initiatedbyAPEDAforexportofqualitybuffalomeatproducts As per DGFT Notification No. 82(RE-2010)/2009-2014 dated 31/10/2011 and subsequent DGFT notification No. 89 (RE 2010)/2009-14 dated 15th December 2011 exports from India can be made only on the conditions that the goods have been sourced from APEDA registered integrated abattoirs or APEDA registered meat processing plants that sources raw material exclusively from APEDA registered integrated abattoirs/abattoirs.

As of date, forty eight integrated abattoirs/abattoirs and forty meat processing plants are registered with APEDA for exports.

Processed Food sector:APEDA conducted awareness programmes at various locations for the benefit of stakeholders of Peanut. Experts from the Director General of Groundnut Research (DGR-Junagarh), State Agriculture University, Professional quality assurance agency, representative of the trade elaborated upon the procedures and guidelines for export of peanut and peanut products. Farmers, processors, storage/warehouses, exporters etc., interacted with representatives of University, IOPEPC and Research & Quality experts during the awareness programs. These programs were organized to spread awareness of the latest development about present quality standards to be maintained for exports of peanut products. Following programs have already been organized during 2013-14 :

Page 38: Commodity Boards and other Development Authorities ...commerce.gov.in/pdf_download/10.Commodity Boards and other... · Commodity Boards and other Development Authorities, Institutional

214 Annual Report 2013-14

CHAPT

ER-8

table: 8.10

s. no. state Place Date1. Andhra Pradesh Hyderabad 5th September, 20132. Tamil Nadu Chennai 6th September, 20133. Karnataka Chitradurga 7th September, 2013

The program in the production areas of Rajasthan, Gujarat, Andhra Pradesh & Orissa are scheduled in the remaining period the year.

VisitofEU-FVOMission:

In order to assess the controls of aflatoxin contamination in peanut intended for export into European union DG(SANCO), 2013-6683 and for follow up of EU mission by DG(SANCO)/2009-8148, three member team of office of EU-FVO, visited India during 21st October to 1st November, 2013.

During the visit they inspected four production units in Gujarat, met with the growers of peanut, met with officials of Pipava Sea port and with Director General of Groundnut Research in Junagarh. In the last phase of their unit they visited two quality testing laboratories to inspect sampling and testing methods to be in line with EU regulation. The visit concluded with a closing meeting in Delhi where all stakeholders, APEDA, IOPEPC, MoA, MoC&I, EIC and NRL (Pune) were present. Draft report of the Mission was discussed by Mission officials with the Indian Govt. officials before the mission was concluded. Further, the Mission has also submitted the report through the office of DG(SANCO) for implementation by authorities in India.

Quality Development in Processed Food sector:

APEDA has endeavored for installation of quality management systems in the processed food sector. For the benefit of exporters, financial assistance in the food processing sector for installation of inhouse quality control labs, implementation of internationally accepted quality management system like BRC, ISO 22000 HACCP was continued in 2013-14.

Exporters of dehydrated vegetables, processed fruits and vegetables, Groundnuts and other processed food like bakery, confectionery, are the main beneficiaries in the sector during 2013-14.

For regular surveillance, APEDA along with IOPEPC conducted unit recognition visits in the groundnut storage/warehouses, processing units. The recognized exporting unit can only export peanut and peanut products after following the guidelines prescribed in APEDA export regulation on peanut dated 27.06.2011. APEDA is monitoring the exports of peanut and peanut products and assures maintenance of quality in the exporting units on continuous basis, in 2013-14.

Page 39: Commodity Boards and other Development Authorities ...commerce.gov.in/pdf_download/10.Commodity Boards and other... · Commodity Boards and other Development Authorities, Institutional

CommodityBoardsandotherDevelopm

entAuthorities,InstitutionalTradeFacilitationandPublicSectorCorporations

215Annual Report 2013-14

CereALs seCtor:

RegistrationofBasmatiRiceasGI

APEDA has been entrusted with responsibility by Govt. of India for protection of intellectual property vested in Basmati Rice. The application filed by APEDA with GI Registry in Chennai in November 2008 was published in journal of the Registry in May 2010 for opposition.

Response to the nine oppositions received by the Registry was filed by APEDA. The GI Registry has given orders in favour of claim for inclusion of areas under Madhya Pradesh in the GI area. APEDA has been directed to file an amended GI application, including the uncovered area, within 60 days. APEDA has filed an Appeal to stay the order with Intellectual Property Appellate Board, Chennai, on 25/02/2014.

AccreditationofBEDFLab

Basmati Export Development Foundation (BEDF), founded by APEDA and registered as a society in 2002 is mandated to undertake activities for integration amongst diverse stakeholders such as farmers, millers, traders & exporters for strengthening the supply chain with improvement in quality of the product.

For quality assurance and authentication of Basmati Rice, a world-class laboratory has been set up in the premises of SVBP University of Agriculture & Technology at Modipuram, Meerut (UP) with facilities for DNA profiling, pesticides residue testing and quality testing on the basis of physical parameters. This lab was notified by DGFT w.e.f. March 31, 2010, as an authorized centre for testing of Basmati Rice samples drawn by Customs for variety

identification & DNA testing. About 3000 samples received from Customs and DRI have been tested by the Lab till date.

In June 2011 the Lab has obtained ‘CertificateofAccreditation’ from National Accreditation Board for Testing & Calibration Laboratories (NABL) under ISO/IEC 17025:2005. BDF also supports DNA Testing by Centre for DNA Fingerprinting & Diagnostic (CDFD), Nampally, Hyderabad (AP) samples received from EIA/ Customs. During 2013-14 total number of 160 samples have been tested; 148 for DNA analysis and 12 for quality testing based on physical parameters.

During the year 2013- 2014, 18894 no. of RCACs were issued for export of 38.40 lakh MTs of Basmati Rice.

Workshops Organized By BEDF for theFarmersofBasmatiGrowingStates

During this year, Basmati Export Development Foundation had organized 15 workshops on “Quality Improvement in productionof Basmati Rice for Export” through its Demonstration & Training Farm in basmati growing states, viz., Haryana, Jammu & Kashmir, Punjab, Uttar Pradesh, Himachal Pradesh &Uttarakhand to educate the farmers regarding production of best quality Basmati Rice for export purpose.

Workshops organized on Aromatic ShortGrain rice

APEDA had organized in association of Kerala Agriculture University a ‘One Day Workshop’ on Jeerakasala and Gandakasala grown in Wayanad District in Kerala on 21st June 2013. All the stakeholders in the supply chain were invited. Shri A.K. Gupta, Director, BEDF has

Page 40: Commodity Boards and other Development Authorities ...commerce.gov.in/pdf_download/10.Commodity Boards and other... · Commodity Boards and other Development Authorities, Institutional

216 Annual Report 2013-14

CHAPT

ER-8

given the key note address. Shri K P. Mohanan, Hon’ble Minister of Agriculture attended the plenary session.

FocusonpromotionofBasmatiRice intheInternationalTradeFairs

A special focus is given on promotion of Basmati Rice in most of the International Trade Fairs where APEDA participates with All India Rice Exporters Association (AIREA).

Basmati Rice wet sampling was done at the following trade fairs:

a) ANUGA 2013, Cologne, Germany from 5th to 9th October, 2013.

b) Food & Hotel, Shanghai, China from 13th to 15th November, 2013.

AGrI eXPort Zones:

The 60 AEZs notified between 2001 and 2004 by the Steering Committee envisaged an investment of Rs.1717.95 crores and export of Rs.11821.47 crores over a period of 5 years. Against these projections, these AEZs are reported to have crystallized a total cumulative investment of Rs.1490.65 Crores and cumulative export of Rs. 38363.00 Crores up to February 2013.

Note: The data of actual exports & investment received from state nodal agencies implementing the AEZS have been compiled cumulatively.

toBACCo BoArD

Tobacco Board was established on 01/01/1976 under the provisions of the Tobacco Board Act, 1975 with its Head Quarters at Guntur, Andhra Pradesh.

The important functions of the Tobacco Board are:

• Regulating the production and curing the Virginia tobacco to match demand in India and abroad.

• Propagating information useful to the growers, dealers and exporters (including packers) of Virginia tobacco and manufacturers of Virginia tobacco products.

• Promoting the grading of tobacco at the level of the growers.

• Establishment of auction platforms for the sale of Virginia tobacco and function as auctioneer.

• Maintenance and improvement of existing markets and development of new markets outside India.

• Keeping a constant watch on the Virginia tobacco market, both in India and abroad and ensuring fair and remunerative price for the same.

• Purchasing Virginia tobacco from the growers when the same is considered necessary or expedient for protecting the interest of growers with the approval of the Government of India.

ProDUCtIonFCVTobaccoProductionRegulation:

One of the important functions of the Tobacco Board is to regulate the production of Virginia Tobacco to match the demand for Indian tobacco so as to ensure fair and remunerative prices to the growers for their produce. This objective is sought to be achieved by fixing

Page 41: Commodity Boards and other Development Authorities ...commerce.gov.in/pdf_download/10.Commodity Boards and other... · Commodity Boards and other Development Authorities, Institutional

CommodityBoardsandotherDevelopm

entAuthorities,InstitutionalTradeFacilitationandPublicSectorCorporations

217Annual Report 2013-14

crop size and by registering commercial nurserymen, tobacco growers and barn operators every year. The Board decides the crop size of FCV Tobacco, considering various factors like demand and supply situations in domestic and international markets, marketability of different types of FCV tobacco, carryover stocks, trends in cigarette production and consumption.

FCVCropProductionPolicy:

Tobacco Board has fixed a crop size of 102 M.kgs., in Karnataka for 2013-14 crop season. For the State of Andhra Pradesh and Odisha, the Board has fixed a crop size of 172 M.kgs.

Production-FCVTobacco

FCV tobacco is cultivated in more than 2.00 lakh hectares every year. In 2013-14,

the area under FCV tobacco is 0.98 lakh hectares in Karnataka and about 0.95 lakh hectares is planted under tobacco as on 22.11.2013 in the states of Andhra Pradesh and Odisha. The plantations in Andhra Pradesh are still in progress. 41385 growers in Karnataka and 45230 in Andhra Pradesh are engaged in FCV tobacco cultivation.

FCV tobacco production in India is declining for the last three years from a peak of 323.25 M.kgs., in 2009-10. FCV production in 2013-14 is estimated at 280 M.kgs., up by about 3% over last year’s production of 270.50 M.kgs. The production of FCV tobacco in Karnataka is estimated at 110 M.kgs., and that of Andhra Pradesh at 194 M.kgs.

Chart 8.5 FCVTobaccoProductioninIndia

(millionkgs)

0.00

50.00

100.00

150.00

200.00

250.00

300.00

350.00

2003

-04

2004

-05

2005

-06

2006

-07

2007

-08

2008

-09

2009

-10

2010

-11

2011

-12

2012

-13

2013

-14 (*)

Karnataka Andhra Pradesh Total

(*)-Estimated

Page 42: Commodity Boards and other Development Authorities ...commerce.gov.in/pdf_download/10.Commodity Boards and other... · Commodity Boards and other Development Authorities, Institutional

218 Annual Report 2013-14

CHAPT

ER-8

other services to growers

Tobacco Board every year undertakes analysis of soil and water samples collected from grower’s fields at free of cost to advise growers on suitability of soil and irrigation water used for tobacco cultivation and quantity of fertilizers to be used for tobacco cultivation. During 2013-2014 crop season, 2060 soil samples and 610 water samples in Andhra Pradesh are analysed at Tobacco Board’s Soil Testing Laboratory at Ongole and based on the analysis results, growers are advised about suitability of soil and dosage of fertilizers to be used. Similarly in Karnataka, about 5500 soil samples are analysed and growers are suitably advised.

eXtensIon:

The Tobacco Board provides a comprehensive package of support and extension services to farmers through:

• Supply of cognitive inputs including fertilizers.

• Organizing crop and input loans to growers at competitive rates of interest.

• Improving Yield & Quality of tobacco through implementing several extension and developmental programs.

• Transfer of technology for improving productivity and quality of the tobacco leaf.

• Extending financial assistance to farmers wherever required.

TrayNurseries–QualitySeedlings:

The seedlings raised in the ‘HIPS’ Trays using coco-peat as the media are of healthy and

better quality seedlings than the seedlings raised by the growers in the traditional seedbeds in the field. The tray seedlings are free from soil born diseases, pests and also result in savings to the farmers in the area of pesticides, fungicides and labour cost for watering the seedlings. The Tray seedlings establish immediately with minimal gap fills and produces uniform crops.

The Board with a view to propagate this new technology has organized supply of 23.45 lakh trays and 42.79 kgs of coco-peat to growers at subsidized cost in Andhra Pradesh and Karnataka states.

Fertilizers:

The Board organises timely supplies of various fertilizers required by growers in Andhra Pradesh and Karnataka at competitive prices. For 2013-14 crop season, the Board had supplied about 34,646 M.tons of fertilizers in Andhra Pradesh and 31,545 M.tons in Karnataka. Due to hectic green manure campaign taken up by the Board, many small and original farmers have resorted to green manuring in an area of around 9,200 hectare.

FarmMechanisation:

BullockDrawnRidgers / TyneCultivators /ridgers:

In order to improvise the farm operations and ridge formations in the tobacco fields, the Board had organized supply of 105 Bullock Drawn Ridgers and 558 Tyne Cultivators to growers in Karnataka at subsidized cost OF Rs. 8.59 lakh.

Page 43: Commodity Boards and other Development Authorities ...commerce.gov.in/pdf_download/10.Commodity Boards and other... · Commodity Boards and other Development Authorities, Institutional

CommodityBoardsandotherDevelopm

entAuthorities,InstitutionalTradeFacilitationandPublicSectorCorporations

219Annual Report 2013-14

PvC pipes:

The Board with a view to help the growers in the drought prone area of Andhra Pradesh to go for a life saving irrigation using available waters in the wells / ponds had supplied about 17522 no. of PVC pipes at subsidized cost of Rs.39.01 lakh

Power sprayers

The Board with a view to help grower to take up timely plant protection measures had indented for about supply of 375 Power sprayers in Andhra Pradesh at subsidized cost and the same is under progress. This apart the Board is contemplating to supply 25 units of Back pack sprayers through NIPHM on experimental basis.

CuringofTobacco-EnergyConservation

The Board encourages growers upgrade the furnace in the curing barn by supplying Venturi Furnaces at subsidized cost – in about 270 barns.

Product Integrity

Nowadays customers are insisting clean product free from admixture of Non-Tobacco Related Materials (NTRMs). Therefore, the Board to help growers supply clean product to the growers is organizing supply of tarpaulins to the growers for use at the time of leaf stringing, grading, bulking and transporting the tobacco bales to the Auction Platforms, supplied Silpaulin tarpaulins of 6540 Nos at subsidized cost of Rs.52.65 lakh during 2013-14 crop season covering 6135 growers.

Input Loans

The Board organizes input loans to growers in Andhra Pradesh and Karnataka states for procurement of various inputs viz., fertilizers, fungicides, trays, coco-peat, sprayers, tarpaulins, etc., at most competitive rates of interest. The Board had organized input loans of about Rs. 88.76 crore in Karnataka at 4% rate of interest p.a and Rs.82.86 crore for Andhra Pradesh at 0% for 2013-14 crop season.

Farmersresorttogreenmanurewiththeincreaseinfertilizercost

Page 44: Commodity Boards and other Development Authorities ...commerce.gov.in/pdf_download/10.Commodity Boards and other... · Commodity Boards and other Development Authorities, Institutional

220 Annual Report 2013-14

CHAPT

ER-8

tobacco Growers welfare Fund:

“Tobacco Board’s Growers’ welfare schemes” is an initiative aimed at welfare of the registered tobacco growers and their dependent family members. Under this scheme, Tobacco Board has created a “Tobacco Board’s Growers Welfare Fund” in 2009-10 as approved by Ministry of Commerce and Industry, Government of India vide its letter dated 6/5/2007-EP (Agri-VI) dated 30/11/2009.

The welfare scheme provides for financial assistance in the form of grants/loans to meet the educational, social and health needs of the growers and their family members in addition to assistance in times of natural calamities.

The Welfare Fund was established with corpus of Rs.25 crore with contribution in the ratio of 1:2 by the tobacco growers (Rs.1000/- each) and the Tobacco Board (Rs.2000/- for each grower) to implement various welfare schemes. Tobacco Board had contributed Rs.17.536 crore towards this fund.

The schemes in operation are:

• Providing financial relief in the form of grant to the dependent family in the

event of death of the grower member of the scheme (Rs. 25000/- for natural death and Rs.50000/- for accidental death).

• Providing financial relief in the form of interest free loan for treatment for major illnesses requiring surgery for the grower member and/or his family members (Rs.25000/- interest free loan).

• Providing financial relief in the form of interest bearing loans @4% interest for education to the dependent children of the grower member (Rs.25000/- @ 4% interest loan).

• Providing financial assistance in advance in the form of interest free loan for the marriages of daughters of the grower member (Rs.25000/- interest free loan).

• Providing financial relief in the form of interest free loan for repairing the barns damaged due to natural calamities (Rs.25000/- per barn in the event of full damage and Rs.10000/- per barn in the event of partial damage).

During 2013-14, Rs.2.72 crore were disbursed in grants and Rs.0.34 crore in loans, totaling to Rs.3.06 crore. The details of relief/assistance extended scheme wise are as follows:

table: 8.11

Category Particulars no. of beneficiaries

Amount

Grants a) Natural death 1033 2,58,25,000b) Accidental death 28 14,00,000 Total Grants (A) 1061 2,72,25,000

Interest Free Loans

a) Loans for Girl child marriage 100 25,00,000

Page 45: Commodity Boards and other Development Authorities ...commerce.gov.in/pdf_download/10.Commodity Boards and other... · Commodity Boards and other Development Authorities, Institutional

CommodityBoardsandotherDevelopm

entAuthorities,InstitutionalTradeFacilitationandPublicSectorCorporations

221Annual Report 2013-14

Category Particulars no. of beneficiaries

Amount

b) Loans for medical treatment of Major illness requiring surgery

9 2,25,000

c) Loans for repairing of barns damaged due to natural calamities

0 0

Loans with interest

d) Loans for Education of Children with 4% interest

26 6,50,000

Total Loans (B) 135 33,75,000 TOTAL (A+B) 1196 3,06,00,000

AUCtIons:

The auction system for sale of FCV tobacco was introduced for the 1st time in Karnataka in 1984 followed by Andhra Pradesh in 1985.

e-Auctioninprogress

Progressmadeduring2013-14:-

• In Andhra Pradesh a total quantity of 165.09 m kg of tobacco was marketed at an average price of Rs. 113.30 per Kg between 1/04/2013 to 31/08/2013 (last auction sales day).

• For 2013-14 Andhra Pradesh crop season, a total quantity of 20.07 Mkg of tobacco was marketed at an average price of Rs.121.64 per Kg between 17/02/2014

& 31/03/2014 (The auction sales were commenced from 17/02/2014). It is estimated that the total estimated production is 191.38 mkg at the beginning of the season as against the target crop size of 172 mkg fixed by the Board.

• For Karnataka 2012-13 crop season, a total quantity of 5.57 mkg of tobacco was marketed at an average price of Rs.79.54 per kg and the Karnataka auctions were concluded on 10/04/2013.

• In Karnataka 2013-14 crop season, a total quantity of 102.02 mkg of tobacco was marketed at an average price of Rs.129.18 per kg and the Karnataka auctions were commenced on 30/08/2013 and concluded on 19/03/2014.

Pricesupportoperations:

Govt. of India notified the Minimum Support Price (MSP) for F2 grade of black soil tobacco and L2 grade of Light soil tobacco on the recommendation of the Commission of Agricultural costs and prices (CACP) up to 2008 crop season. Based on which the Minimum Support Prices for other grades are worked out by the Tobacco Board. Since, the year

Page 46: Commodity Boards and other Development Authorities ...commerce.gov.in/pdf_download/10.Commodity Boards and other... · Commodity Boards and other Development Authorities, Institutional

222 Annual Report 2013-14

CHAPT

ER-8

2009, the Govt. of India has not announced the Minimum Support Price for FCV tobacco crop.

export Performance:

The exports of tobacco and tobacco products during 2013-14 were 2,64,384 tons valued at Rs. 6,059.31 crore (1,001.54 Million US $) against 2,63,575 tons valued at Rs. 4,979.05 crore (914.43 Million US $) exported in 2012-13.

During 2013-14, the unmanufactured Tobacco exports were in the order of

2,34,850 tons valued at Rs. 4,842.01 crore and exports of Tobacco Products were in the order of 29,534 tons valued at Rs. 1,217.30 crore. The unmanufactured tobacco exports had increased by about 3% in quantity terms and 26% in value terms, while the exports of tobacco products declined by 17% in quantity terms and increased by 6% in value terms during this period. Overall, exports of Tobacco and Tobacco Products increased by 0.3% in quantity terms, 22% in Rupee terms and 10% in Dollar terms over the corresponding period of last year.

table: 8.12 ExportperformanceofTobacco&TobaccoProducts(2013-14)

2012-13 2013-14 Growth (%)Quantity value Quantity value Quantity value

Mt rs. Crore

US$Million

Mt rs. Crore

US$Million

Mt rs. Crore

US$Million

Manufactured 35552 1147.21 210.69 29534 1217.30 201.21 -16.93 6.11 -4.50Unmanufactured 228023 3831.84 703.74 234850 4842.01 800.33 2.99 26.36 13.73Total 263575 4979.05 914.43 264384 6059.31 1001.54 0.31 21.70 9.53

ExportPromotionActivities:

As a part of export promotion activities, Executive Director, Tobacco Board had participated in Global Tobacco Networking Forum, Cape Town, South Africa during 4-8 November 2013.

With a view to promote the exports of tobacco and tobacco products, the Board had participated in international exhibitions at the following places to show case the Indian unmanufactured tobacco and tobacco products.

1) The India Show, Dares Salaam, Tanzania during 25 -27 September 2013

2) Global Tobacco Networking Forum (GTNF) Cape Town, South Africa during 4-8 November, 2013.

3) World Tobacco Europe 2013, Hamburg, Germany during 12-14 November 2013

Modified Personal Accident Insurancescheme:

Modified Personal Accident Insurance Scheme was introduced in 2005 and modified in December, 2008, by the Price Stabilization Fund Trust established under the Ministry of Commerce & Industry.

The Scheme will cover the growers in the sectors of Tea, Coffee, Rubber and Tobacco

Page 47: Commodity Boards and other Development Authorities ...commerce.gov.in/pdf_download/10.Commodity Boards and other... · Commodity Boards and other Development Authorities, Institutional

CommodityBoardsandotherDevelopm

entAuthorities,InstitutionalTradeFacilitationandPublicSectorCorporations

223Annual Report 2013-14

having plantations up to 4 hectares only. The scheme will also cover the permanent plantation workers working on these plantations. Growers who have enrolled themselves under the PSF scheme earlier don’t have to pay membership fee. The growers of tobacco have to pay Rs.100/- for availing the benefit of the Personal Accident Insurance Scheme, as they did not join the main PSF Scheme. For tobacco, the family members of the growers working in cultivation are also considered for insurance.

The vendor agency for 2011-12, 2012-13 & 2013-14 is M/s. Cholamandam M.S. General Insurance Company Limited. The premium for the policy to be issued for every individual would be Rs.22.06 per annum (including Service Tax) for the year 2011-12, 2012-13 & 2013-14 and this would be subsidized by PSF Trust @ 50% of the premium. The share of premium payable by the individual growers and their beneficiaries is Rs.11/- per annum. The insurance cover will be up to Rs.1.00 lakh per person. The Personal Accident Insurance Scheme is a standalone scheme and is not linked to the main PSF Scheme.

Government of India have extended the implementation of Personal Accident Insurance Scheme during the year 2013-14 for a period of six months i.e. from April, 2013 to September,2013. During the year 2013-14 (April,2013 to September,2013), 3082 tobacco growers and 1671 workers, total comes to 4753 persons in Andhra Pradesh and Karnataka were joined under the Scheme. During 2013-14 Rs.2.00 lakh was released towards compensation under the said scheme in respect of two death cases of tobacco growers.

the Marine Products export Development Authority (MPeDA)

The Marine Products Export Development Authority, a statutory body under the Department of Commerce, Ministry of Commerce & Industry is mandated for the development of export of marine products from India.

export Performance

The Export of Marine Products during the financial year 2013-14 reached an all-time high of US $ 5007.70 million. Marine product exports, crossed all previous records in quantity, rupee value and US $ terms. Exports aggregated to 9, 83,756 MT valued at Rs. 30,213.26 crores and US $ 5,007.70 million. Compared to the previous year, seafood exports recorded a growth of 5.98 % in quantity, 60.23% in rupee and 42.6 % growth in US $ earnings respectively. The unit value realization also reached to record high from USD/Kg 3.78 during 2012-13 to USD/Kg 5.09 during 2013-14 and recorded growth of 34.55%. The increased production of L. Vannamei shrimp, has helped to achieve higher exports.

table 8.13Exportsduring2013-14comparedto2012-13

export details 2012-13 2013-14 Growth %

Quantity Tonnes

928215 983756 5.98

Value Rs. crore 18856.26 30213.26 60.23Value US $ Million

3511.67 5007.70 42.60

Unit value (US$/Kg)

3.78 5.09 34.55

Page 48: Commodity Boards and other Development Authorities ...commerce.gov.in/pdf_download/10.Commodity Boards and other... · Commodity Boards and other Development Authorities, Institutional

224 Annual Report 2013-14

CHAPT

ER-8

MajorExportMarkets

South East Asia continued to be the largest Market Indian sea food with a share of 26.38% in terms of US $ value realization followed by USA, with a share of 25.68% followed by European Union (EU) (20.24%), Japan (8.21%), other countries (8.20%), China (5.85%) and Middle East (5.45%).

Majoritemsofexport

Frozen shrimp continued to be the major export value item accounting for a share of 64.12% of the total US $ earnings. Shrimp exports during the period increased by 31.85%, 99.54% and 78.06% in quantity, rupee value and US $ value respectively. There was all time high growth in unit value realization of frozen shrimp at 35.05%.

thrust Areas

To facilitate enhanced export of marine products from the country MPEDA has been giving greater thrust in the following areas: -

• Diversifying the culture practices in to commercially important Shell fishes and Fin fishes to enhance aquaculture production and increase the varieties.

• Establishing traceability of Aqua Culture and Capture Fishery products through primary producers enrolment.

• Establish traceability of aquaculture and capture fishery products through primary producers enrolment.

• Promoting Ornamental Fish Breeding for export by providing infrastructure to produce varieties of Ornamental Fish species and also for employment generation in rural and semi urban areas.

• Upgrading of fishing harbours to international standards for sustaining / expanding our international markets.

• Extending financial assistance for conversion / construction of Tuna Long Liners and imparting training to crew to develop Tuna industry to boost the export of Tuna

• Implementing Catch Certification scheme for preventing / discouraging Illegal, Unreported and Unregulated (IUU) fishing.

• Operating a scheme of Sea-freight assistance for the promotion of export of value added marine products by the registered seafood manufacturer exporters.

• Introduced a quality for Mark Scheme promotion of value added consumer products in major markets.

• Ensuring production of quality seafood by setting up sophisticated laboratories in the maritime States.

• Operating a nation wide network of ELISA labs to ensure Anti Biotic free residue aquaculture exports.

• Establishing presence of Indian Seafoods in major International markets by co-branding, publicity in different media and Indian products with major buyers abroad.

• Registration Certificates and RCMC Certificates are issued on-line through MPEDA Regional Offices. Financial Accounting, Payroll, Pension, Personnel, GPF, Stores and Inventory, Asset Management etc are computerized. Subsidy Application processing & Subsidy

Page 49: Commodity Boards and other Development Authorities ...commerce.gov.in/pdf_download/10.Commodity Boards and other... · Commodity Boards and other Development Authorities, Institutional

CommodityBoardsandotherDevelopm

entAuthorities,InstitutionalTradeFacilitationandPublicSectorCorporations

225Annual Report 2013-14

disbursement, PHT, NRCP Lab testing are also computerized and e-procurement system has been introduced.

Steps taken to increase production andexports

• Assistance for Fishing Vessel owners for the installation of Insulated Fish Hold / Refrigerated Seawater System / Ice making machinery for onboard fishing vessel for better preservation of catch and earning of more value for the catch.

• Extended technical and financial assistance for the development of new area under Shrimp and Scampi culture in all the maritime States of the country for sustainable production of seafood.

• With the introduction of Pacific White Shrimp into India, a significant increase has been noticed in the aquaculture production from the maritime States of the country. The shrimp and Scampi production in 2013 -14 up to March 2014 was estimated to be about 3,35,000 MT including Scampi production of 3,545 MT. 75% of aqua cultured shrimp was L. Vannamei and 23% was Black Tiger. The Aquatic Quarantine facility established by RGCA / MPEDA at Chennai screens all the imported SPF L. vannamei brood stock for OIE listed pathogen to ensure the production of quality SPF L. vannamei Shrimp seeds for farming. Steps have been initiated to setup the broodstock multiplication centre at MPEDA facility at TASPARC, Visakhapatnam by RGCA so that required number of broodstock for the sector could be produced in a bio-

secure condition and can be supplied to the sector as and when required.

• Encouraging formation of Aqua Farmers Welfare Societies of small farmers for adoption of Code of Practices for sustainable shrimp culture by extending financial assistance for setting up common facilities.

• To popularize the technology on Crab farming, field demonstrations continued in coastal States for which the cost for inputs like seed, feed and Crab fencing is being extended by MPEDA.

• To popularise the technology for all male gift Tilapia culture & Cobia culture field level demonstration and technology transfer is being carried out.

• Demonstration of disease free Tiger Shrimp production using high health shrimp seeds were conducted in the States of Maharashtra and Odissa.

• To facilitate quality supply of the inputs like seed and feed to the aqua farmers, MPEDA is involved in the monitoring of hatcheries on quarterly basis and collecting the feed samples from production units for quality analysis.

• India Organic Aquaculture Project (IOAP) assists in the development of Certified Organic Shrimp / Scampi seed, Certified Organic aqua feed, Organic Certification of aquaculture farms and Organic Certification of Processing Plants to boost the export of Organic aqua products from India. MPEDA is continuing the initiative to promote the production and export of Organic Seafood from the country.

Page 50: Commodity Boards and other Development Authorities ...commerce.gov.in/pdf_download/10.Commodity Boards and other... · Commodity Boards and other Development Authorities, Institutional

226 Annual Report 2013-14

CHAPT

ER-8

• MPEDA assists the processors to construct/renovate captive/independent pre-processing centers as per EU/GoI guidelines and setting-up of Mini Laboratory in processing plants.

• FVO Mission of European Commission comprising of two teams visited India during 3rd to 14th March, 2014 to evaluate the control systems in place. They also visited MPEDA Head Office on 10th March, 2014. MPEDA Representatives accompanied the teams throughout their visits in addition to inspections at seafood processing centers, harbors, farms, labs etc. USFDA commissioner had a special meeting with Chairman, MPEDA during her visit to Kochi.

• Provided technical assistance to the seafood industry in HACCP implementation by imparting training to the technical personnel of the industry. MPEDA also hosted 7th meeting of ISO TC/234 in association with SEAI. For effective implementation of MPEDA LOGO scheme, two training programmes on product inspection was organized at Kochi and Mumbai from 25th to 26th April, 2013 and 8th and 9th May, 2013 respectively.

• With continued effort by MPEDA and MoCI on the Ethoxyquin issue, the Japanese Ministry of Health, Labour & Welfare has fixed Maximum Residue Limit (MRL) of 0.2 ppm against the earlier default limit of 0.01ppm in crustaceans including farmed shrimps.

• MPEDA has set up 4 more ELISA Screening Laboratories one each in West Bengal,

Odisha, Andhra Pradesh and Tamil Nadu, making total number of ELISA labs as 20 with automatic ELISA testing equipment to screen for the presence of antibiotic residues like Nitro furan metabolites and Chloramphenicol in cultured shrimp under the Pre-Harvest Testing (PHT) program. Under the PHT programme, during January to December 2013 a total of 46,400 samples were tested by ELISA labs.

• The monitoring of Cadmium content in Cephalopods (Squid, Cuttlefish & Octopus) is done / studied in samples caught in all the regions on East & West Coasts of India. Analysed 101 samples till December 2013.

• The Quality Control lab at Kochi is also undertaking a project for Monitoring of Pesticide Residues at National Level (MPRNL) funded by Department of Agriculture (MoA). During the year 2013-14, 550 samples of inland fishes and crustaceans, marine crustaceans from the maritime states of India were analysed and the results were communicated.

• To increase the processing capacity of value added products, MPEDA is operating various subsidy schemes for the benefit of existing exporters and also to the new entrepreneurs for creation of required infrastructure facilities..

• Extended financial assistance for cold chain development by: 1. Subsidised distribution of Insulated Fish Boxes, 2. Acquisition of Refrigerated Trucks/Containers, 3. Financial Assistance for the construction of new large Cold

Page 51: Commodity Boards and other Development Authorities ...commerce.gov.in/pdf_download/10.Commodity Boards and other... · Commodity Boards and other Development Authorities, Institutional

CommodityBoardsandotherDevelopm

entAuthorities,InstitutionalTradeFacilitationandPublicSectorCorporations

227Annual Report 2013-14

Storages, 4. Setting up of New Ice Plants/Renovation of Existing Ice Plants.

• MPEDA participated in 8 major international seafood fairs around the world and displayed a wide range of Indian marine products especially value added products to generate awareness and demand.

• MPEDA organised the 19th edition of Indian International Seafood Show (IISS) at Chennai from 10th to 12th January 2014. About 2500 delegates participated in the Seafood Show along with 255 exhibitors occupying 355 stalls. About 450 foreign delegates also participated in the show.

• As a part of promotional measures in seafood and marine products production sector, MPEDA is organising 3rd edition of AQUA AQUARIA INDIA 2015, an International show focusing the aqua culture and Ornamental Fish sector in February 2015 at Vijayawada. A total of about 20,000 Indian and overseas delegates are expected to attend the show and a total 300 exhibitors including those from USA, UK, Thailand, Singapore, Malaysia, China etc. are participating in it.

• Rajiv Gandhi Centre for Aquaculture (RGCA) continued Research and Development activities for developing new aquaculture technologies by innovative methods, by implementing several species specific R & D projects for increasing production of commercially important Finfish, Shellfish, export oriented ones in particular, to strengthen

the aquaculture production base in the country.

• NETFISH, a Society promoted by MPEDA for undertaking extension education programmes, continue their efforts in Capture Fisheries sector, Fish Quality Management, Conservation and sustainable fishing and for capacity building in all the maritime States of India. The extension tools developed by NETFISH such as posters, leaflets, documentaries and animation films were made use of for delivering the messages effectively during the programmes and also conducts special awareness programmes such as Street Plays, Medical Camps, Rallies, Clean-ups, School programmes, Mass Communications, Radio Programmes, etc.

• NaCSA, a Society promoted by MPEDA for undertaking extension education programmes continue their efforts in culture fisheries sector, for quality up gradation and for capacity building of small scale shrimp farmers, NaCSA educates farmers in Better Management Practices, Crop Planning, etc and continue to support sustainable aquaculture by creating participatory movement through capacity building at grass root level.

• The Nucleus Breeding Centre of the Domestication of Tiger Shrimp Project (DTSP) of RGCA/MPEDA at Andaman was dedicated to the Nation on Friday, the 28th February 2014 by Shri. Anand Sharma, the then Union Minister of Commerce & Industry, Govt. of India.

Page 52: Commodity Boards and other Development Authorities ...commerce.gov.in/pdf_download/10.Commodity Boards and other... · Commodity Boards and other Development Authorities, Institutional

228 Annual Report 2013-14

CHAPT

ER-8

On the same day, the then Union Minister also laid the Foundation stone for the Multi-species Grouper Hatchery at Rangachang, Andaman and the Broodstock Multiplication Centre for Tiger Shrimp at Kanyakumari Dt., Tamil Nadu via satellite link

• UNDP Mangrove Project - During the year, around 3.86 lakhs Crab instars were stocked in 625 Nursery Hapas in 29 batches at the Demonstration farm. These were reared to Crablets and around 1.51 lakhs Crablets were produced at survival rates ranging between 34% and 52% from batch to batch. While 61,000 crablets were supplied to 20 farmers across the country, around 11500 nos were supplied for three MPEDA Demonstration and around 23,000 were supplied to the UNDP Mangrove project in Maharashtra. Around 6200 nos. were supplied to govt. institutions for their demonstrations.

• Launch of the Online Quarantine Monitoring System at the AQF - The development of the Online Quarantine Monitoring system with an online space reservation portal at the Aquatic Quarantine facility was completed and the system hosted at the website of RGCA at www.rgca.org.in. Online space reservation through a dedicated payment gateway commenced on the 15th April 2013 and the system has completed one complete year without any major glitches. This system has become extremely popular among the users owing to the transparency on space availability and simplicity in the booking process.

B. TradeFacilitationInstitutions

i) IndianInstituteOfForeignTrade(IIFT)

The Indian Institute of Foreign Trade (IIFT) was established in 1963 by the Government of India with the objective to strengthen the country’s external trade sector through development of human resources and by generating, analyzing and disseminating data for conducting research and providing consultancy services in trade promotion. Since then, the Institute has been playing a pioneer role in imparting training in foreign trade management in the country besides undertaking research and consultancy in various areas of International Business. Recognising its achievements, the Institute was awarded the status of Deemed University in May 2002 by University Grants Commission (UGC) and accredited in May 2005 as “A” grade institution by National Assessment and Accreditation Council (NAAC).

To commensurate its achievement and contribution towards development of knowledge and growth of international trade, IIFT celebrated its Golden Jubilee on 2nd May 2013. Shri Pranab Mukherjee, President of India, graced the ceremony as Chief Guest. Hon’ble President of India unveiled the Sculpture “Wings of Wisdom” at IIFT premises, and addressed the faculty, staff and students of IIFT.

As part of the Golden Jubilee Celebrations, Hon’ble Prime Minister released a commemorative postal stamp in glittering ceremony on 21st December 2013. This was a significant recognition by the Government of India for the enormous contribution of IIFT in nation building over the last 50 years.

Page 53: Commodity Boards and other Development Authorities ...commerce.gov.in/pdf_download/10.Commodity Boards and other... · Commodity Boards and other Development Authorities, Institutional

CommodityBoardsandotherDevelopm

entAuthorities,InstitutionalTradeFacilitationandPublicSectorCorporations

229Annual Report 2013-14

The Institute has emerged as a major Centre of International Business by aligning its teaching, research and training capabilities with its core vision over the years and by constantly striving to create academic excellence through its five academic divisions, namely, Graduate Studies Division (GSD), Research Division (RD), Management Development Programmes (MDPs) Division, International Collaboration and Capacity Development (ICCD) Division and International Project Division (IPD). Each Division caters to competency development in a specific area and contributes to the overall growth of the Institute.

The major activities carried out by the Institute during 2013-14 (April 2013-March 2014) by different Divisions/Sections of the Institute are given below:

Education

The Institute conducts different educational programs which include Ph.D, MBA(IB) Degree Full Time and Part Time, 05 Executive Diploma Programmes and 02 Certificate Programmes.

International Collaboration and CapacityDevelopment (ICCD)

The International Collaborations & Capacity Development (ICCD) Division of IIFT plays an important role in the Institute through the following activities:

InternationalCollaborations

IIFT has established academic ties with domestic and international Universities / Institutes to enable activities such as joint training and research programmes and student / faculty exchange. At present, IIFT

has collaborations with 27 Universities / Institutes across the world. Of these, 16 are in Europe, 6 are in Asia and 5 are in other parts of the world.

student exchange Programme

29 students came to IIFT for different duration during July 2013- March from different Universities and Institutions like ESC Rennes School of Business, Grenoble Graduate School of Business, EM-Strasbourg University, University of Insubria, UAM, IESEG, SKEMA etc. under Student Exchange Programme. One student spent one entire academicyear from July 2013-March 2014.

10 students each from Delhi and Kolkata Campus of IIFT visited various Universities like EM – Strasbourg University, France, Grenoble Graduate School of Business, France IÉSEG School of Management, Saarland University, Germany, SKEMA Business School, France and ESC Rennes School of Business from January 2014 to March 2014.

Capacity Development

Capacity development initiative of IIFT is aimed at providing academic exposure to IIFT Faculty. In the period April 2013 to March 2014, the Institute provided financial support to attend training/conferences/seminars/programmes to 10 faculty members in India and 7 Faculty members to attend International Training Programmes on Practical General Equilibrium Modelling with GAMS at Singapore.

DelegationsfromAbroad

• The Confederation of Indian Industry (CII) and Ministry of External Affairs (MEA) jointly organized a Student Delegation of 125 participants from ASEAN countries.

Page 54: Commodity Boards and other Development Authorities ...commerce.gov.in/pdf_download/10.Commodity Boards and other... · Commodity Boards and other Development Authorities, Institutional

230 Annual Report 2013-14

CHAPT

ER-8

The delegation visited IIFT on September 28, 2013. The participants had an Interactive Session with IIFT Faculty on “Globalization and FTAs with ASEAN Region”.

• A delegation of high level Oman Government officials visited IIFT on 21st October, 2013 to discuss about Oman’s interest in developing its education sector and leveraging research which can be used for business development.

• A delegation of 8 Indonesian officials visited IIFT on 26th December, 2013 to discuss on Trade in Services, International Cooperation and Food Security.

• A delegation of Professors and students from Florida International University (FIU) visited IIFT to attend the programme on “Professional Development in International Business India 2014 Program” (3rd January 2014).

InternationalProjectDivision

Capacity Building Programmes on InternationalBusinessInAfricanCountries

The Institute has successfully conducted Twenty Three Executive Development Programmes on International Business in various African Countries viz Ethiopia, Egypt, Botswana, Namibia, Angola, South Africa, Uganda, Senegal, Rwanda, Burkina Faso, Sudan, Mauritius, Seychelles, Togo, Tunisia Ghana, Niger, Eritrea, Kenya, Gabon, Tanzania, Madagascar and Djibouti.

SettingUpOfIndia-AfricaInstituteofForeigntrade (IAIFt)

• Uganda was identified as the host country for setting up of IAIFT by the

African Union (AU) with IIFT as the implementing agency on behalf of the Government of India.

• The MOU was sent to the Government of Uganda by MEA on 13th October 2011. IIFT still awaits the concurrence for the same from Ugandan side for implementation of the project.

• The plan is to begin with Certificate Programmes in Export-Import Management and then gradually slip into long-term MBA Programmes in International Business and International Trade Logistics & Operations.

• In addition, MDPs and research activities have also been planned for. The budget now standing at Rs. 60 crore has been submitted to the Ministry of External Affairs, Government of India.

Long–TermtrainingprogrammeinTanzaniain collaboration with Institute of FinanceManagement(IFM),Dar-es-Salam,Tanzania

• Inauguration of MBA(IB) 2013-15 was held on 18 November 2013.

• IIFT has submitted a proposal to IFM for setting up an IIFT-IFM Institute of Foreign Trade in Tanzania.

• Convocation of MBA (IB) 2011-13 was held on 28 February 2014 at IFM, Tanzania. Director-IIFT presided over the function. 43 students were awarded the degree.

• IFM has released the advertisement for new batch of MBA(IB) 2014-16 which will commence from October 2014.

ResearchProject

• IPD took up the research project on India-ECOWAS Trade and Economic

Page 55: Commodity Boards and other Development Authorities ...commerce.gov.in/pdf_download/10.Commodity Boards and other... · Commodity Boards and other Development Authorities, Institutional

CommodityBoardsandotherDevelopm

entAuthorities,InstitutionalTradeFacilitationandPublicSectorCorporations

231Annual Report 2013-14

Cooperation. The project of Rs 10.32 lakh to ascertain the potential of bilateral trade and economic cooperation between India and Economic Community of West African States (ECOWAS) - a regional group comprising 15 West African countries, was sponsored by the Department of Commerce, Government of India and completed by two professors of the Institute.

• Final report of the project was submitted to Department of Commerce in December 2013.

Proposal for India Africa Forum summit (IAFS)–2014

• A proposal under India Africa Forum Summit scheduled to be held in September / October 2014 has been submitted to Department of Commerce and Ministry of External Affairs, Govt. of India.

e-Resources

In order to facilitate online access to information, Library has also subscribed to trade related 30 online and offline databases.

Publications

Foreign trade review

Foreign Trade Review (FTR) is a premiere journal on International Economics published by IIFT. It’s a quarterly well recognized in India and abroad in the field of international trade. Since 1966, 48 Volumes have been published with 4 issues per volume. Currently the journal is published by M/s Sage Publications, India.

In its more than four and half decades of existence, it has remained a platform for dissemination of in-depth analysis focusing on India’s integration with world economy and global trade. It publishes papers from various experts, academicians, researchers, policy makers and trade and industry having a track record of proven expertise on these critical issues.

Focus wtoFocus WTO published by IIFT is devoted to WTO and related issues. Since 1999, the Institute has been publishing this journal. Each issue is thematic.

With the establishment of WTO, the entire dynamics and gamut of international trade have undergone a fundamental change. Analysis and information on WTO issues have become important while conducting international trade for many countries. The journal caters to the requirements of various government departments, academicians, policy makers and trade and industry.

Focus WTO which was a bimonthly journal is now being brought out as a quarterly journal from January 2014.

IIFTCampusatKolkataThe construction activities in Academic Block, Administrative Block and Hostel Block are in full progress where RCC framework and brick work have been completed and finishing works are in progress. Supplementary activities likefire-fighting work, lift, HVAC, DG sets, network & EPBAX and cabling etc. are also going on simultaneously. It is expected that Kolkata campus of the Institute will start functioning from its own campus in the next academic year.

Page 56: Commodity Boards and other Development Authorities ...commerce.gov.in/pdf_download/10.Commodity Boards and other... · Commodity Boards and other Development Authorities, Institutional

232 Annual Report 2013-14

CHAPT

ER-8

Centres of IIFt

CentreforInternationalTradeinTechnology(CItt)

The Centre for International Trade in Technology (CITT) has continued its activities in 2013-14 related to policy research in technology and innovation space. The Centre has been putting efforts to carry out focused research in innovation and innovation led growth. A comprehensive research project "Emerging and Contemporary R&D and Innovation Indicators in National S&T System and Policy Implications-A Comprehensive Study" sponsored by Department of Science & Technology (DST) is under way and in final stages of procurement. Also, other potential partners and sponsors are being pursued for other identified investigation areas.

Centre for MsMe studies

IIFT’s MSME Centre aims at providing continuous support to the SME sector by carrying out activities which can broadly classified into conducting Training Programs, provision of Business Intelligence services through comprehensive information hub and acting as a catalyst for Interfacing with other concerned and associated institutions and organizations, both within the country and abroad.

Training and capacity building of SMEs both at National and International level. The modules are being designed for SMEs, trade bodies, industry associations, Policy Makers and negotiators. Customised solutions are being provided on case to case basis with sectoral inputs taking leverage of strong industry – academia linkage developed by the centre over its existence of almost 8 years

now. This calls for collaboration of the centre with sectoral Export Promotion Councils and commodity boards towards extending the knowledge support on pertinent issues of trade interest for the SMEs. Some of the sustainable partners for the Centre includes APEDA, Council for Leather Exports, Textiles Committee, ACMA, Gems and Jewellery EPC, Elcina Electronic Industries Association of India, Engineering EPC, Sports Goods EPC, Pharmaxil, Capexil etc. Other export promotion agencies/bodies with which the centre is working closely includes Rubber Board, Silk Board, Coir Board of India, DC(Handicrafts) etc.

Centre has been identified as one of the stakeholders towards Constitution of Sub-Group on ‘MSMEs’ under the Planning Commission Working Group on “Boosting India’s Manufacturing Exports” for the Twelfth Five Year Plan (2012-17). Centre has been quite instrumental towards spreading information on regulatory issues across SMEs bringing new business opportunities in foreign markets. One of the most recent initiatives in this regard has been spreading awareness on Unfair Competition Act Law and its impact on SMEs across various clusters: a study conducted with ASSOCHAM. Centre has also entered into an MOU with CII as a joint initiative towards enhancing exports from MSME sector.

At international level, Centre have collaborated with Mekong Institute, Thailand, in assisting them towards “Trade and Investment Facilitation” within GMS region and help the region to improve their trade competitiveness. Centre in collaboration with CBI Netherlands (Centre for the Promotion

Page 57: Commodity Boards and other Development Authorities ...commerce.gov.in/pdf_download/10.Commodity Boards and other... · Commodity Boards and other Development Authorities, Institutional

CommodityBoardsandotherDevelopm

entAuthorities,InstitutionalTradeFacilitationandPublicSectorCorporations

233Annual Report 2013-14

of Imports from Developing Countries] has been conducting training programs for IIFT students on certain core areas like Export management; Market knowledge; Product and production improvement etc.

Centre for wto studies

The activities undertaken by the Centre for WTO Studies seek to achieve three broad objectives: (i) to assist India’s trade negotiators and policy makers in participating effectively in the WTO and at the related multilateral trade negotiations; (ii) to enhance the understanding of key trade issues among stakeholders through outreach and dissemination activities; and (iii) to develop capacities within India and in other developing countries for analysing WTO and other trade-related issues through training programmes.

Following are some of the key achievements of the Centre for WTO Studies during 2013-14

• Detailed research by the Centre in agriculture, non-agriculture market access, anti-dumping, subsidies, services, intellectual property rights etc. has strengthened the capacity of the Department of Commerce to participate more effectively in the WTO work programme and in Regional Comprehensive Economic Partnership Agreement (RCEP) trade negotiations. In particular, the research undertaken by the Centre significantly assisted the Department of Commerce in negotiations on Food Security issues in the run up to the Bali Ministerial Conference of the WTO.

• The Centre undertook detailed research on different aspects of India’s integration in global value chains.

• The Centre organised several stakeholder consultation meetings, which have provided an opportunity for two-way dialogue between trade negotiators and trade policy officers on the one hand and stakeholders on the other.

• The Centre partnered with organisations including the WTO, UNCTAD, UNESCAP and the University of Sussex for organising national/ international training programmes and outreach activities for deepening the understanding of WTO issues among stakeholders at the national and regional level. In partnership with the WTO during 9 September – 1 November 2013, it organised the Regional Trade Policy Course for Asia and Pacific Region.

• The Centre maintains a comprehensive database of STS and TBT notifications made by WTO members. The database was updated during 2013-14.

• Under the Indian Technical and Economic Cooperation programme of the Ministry of External Affairs, the Centre for WTO Studies organized three international training programmes on WTO issues for officers and diplomats from developing countries.

• In partnership with UNESCAP, the Centre for WTO Studies organised 4 trade-related capacity building training programmes for officers, academicians and industry in Myanmar.

Page 58: Commodity Boards and other Development Authorities ...commerce.gov.in/pdf_download/10.Commodity Boards and other... · Commodity Boards and other Development Authorities, Institutional

234 Annual Report 2013-14

CHAPT

ER-8

• The Centre assisted the Department of Commerce in some of the WTO disputes involving India.

Indianinstituteofpackaging(IIP)

The Indian Institute of Packaging was set up on 14thMay, 1966 with the main objective of promoting the export market by way of innovative package design and development and also to upgrade the packaging standards at National Level. The head office of the Institute is at Mumbai and its branches are located at Delhi, Kolkata, Chennai and Hyderabad. In 2013, State Government of Karnataka has allotted a land at Bangalore for the setting up 5th Branch of the Institute at Bangalore. The construction of this centre will be completed during the 12- Five Year Plan.

Under educational activities, the Institute has been conducting a fulltime two years Post Graduate Diploma Programme in packaging technology since 1985 at Mumbai. Subsequently, the similar programme is also started at Delhi, Kolkata and Hyderabad. As on date, more than 2400 students have successfully completed this programme and

all of them ate working in the leading FMCG companies in India and abroad. The Institute also undertakes Basic and Applied Research in the field of packaging for the development of alternative packaging materials for commodity goods and is also involved in the determination of shelf life for various processed food products by considering the characteristics of products and packaging materials for their performance properties. Besides, the laboratories at Mumbai are also accredited to NABL (National Accreditation Board for Testing Calibration Laboratories) as per ISO IEC 17025:2005 under Department of Science and Technology, Ministry of Science & Technology, Govt. of India and the laboratories are engaged for the testing of packaging materials and packages at its well-equipped laboratories at head office Mumbai and other branches at Delhi Kolkata, Chennai & Hyderabad.

National Centre for Trade Information(nCtI)

ITPO and NIC are co-promoters of the Company and have contributed a sum of Rs. 4 crore (Rs. 2 crore each) as Corpus Fund in the equity contribution of the Company.

MajorActivitiesofNCTI

Trade data based research and analysis – 2/4/6/8/ digit HS classification-India / Target Country – 9/10 digit level

Focus Market: Focus Product – Export potential studies

Drawing / evaluating wish lists / offer lists under various PTA/FTAs of India (existing and prospective)

trade Data Analysis support to Department of Commerce

India-ASEANFTA

Identification of Tariff lines with high export potential to Eastern and Central European Countries

Page 59: Commodity Boards and other Development Authorities ...commerce.gov.in/pdf_download/10.Commodity Boards and other... · Commodity Boards and other Development Authorities, Institutional

CommodityBoardsandotherDevelopm

entAuthorities,InstitutionalTradeFacilitationandPublicSectorCorporations

235Annual Report 2013-14

“India-Canada FTA – Analysis of trade data and Identification of Potential items for India’s wish list

support to trade and Industry

Creation and maintenance of websites

Website content management

Market research / studies / surveys

Creation of databases – Importers / Exporters (product category wise)

Electronic Trading Opportunities (ETOs) or live trade enquiries – all markets all products

Uploading 52 issues of E-weekly ‘Trade Point-India’ annually on its website containing approximately 250 Trade Leads each week.

Setting up Trade Information Centres

Trade Fair / exhibitions support:

web & Database support Provided to ItPo

Development&MaintenanceofallFairSpecificWebsitesCorporate,RTIwebsitesofItPo

Creation & maintenance of all fair specific websites, updates on the Corporate, RTI Websites of ITPO.

CreationofSectorSpecificDatabase&ParticipantsFeedbackSurveyforITPO

Collection and compilation of Sector Specific Database and Participants Feedback Survey for various fairs organized by ITPO.

Website design and development Database creation Visitor registration Feedback surveysFor details please visit NCTI website: www.ncti.gov.in

QualityControlandPre-ShipmentInspectionAgency

In the post WTO scenario with importing member countries have been imposing stringent requirements to protect the health & safety of their population, compulsory certification is mandated & imposed in food sector for items like marine products,

milk products, egg products, honey, poultry products, meat products, gelatinossein and crushed bones, animal casings etc., so as to address the import regulation of major trading partners. So the major function of the Organisation, i.e. inspection & certification for exports basically for areas related to health & safety & any other requirements of

Page 60: Commodity Boards and other Development Authorities ...commerce.gov.in/pdf_download/10.Commodity Boards and other... · Commodity Boards and other Development Authorities, Institutional

236 Annual Report 2013-14

CHAPT

ER-8

importing Governments once again gained importance.

Exports certification is carried out through its field organisation (EIA), and is based on a system approach to include GHP/GMP/HACCP and also tailored to meet the requirements of the importing countries.

ExportInspectionCouncilofIndia(EIC)

The Export Inspection Council of India (EIC) was set up by the Government of India under Section 3 of the Export (Quality Control & Inspection) Act, 1963 as an apex body to provide for sound development of export trade through quality control and pre-shipment inspection. The Act empowers the Central Government to notify commodities and their minimum standards for exports, generally international standards or standards of the importing countries and to set up suitable machinery for inspection and quality control. The EIC is assisted in its functions by the Export Inspection Agencies (EIAs) located at Chennai, Kochi, Kolkata, Delhi and Mumbai having a network of 28 sub-offices and laboratories to back up the pre-shipment inspection and certification activity. In addition, EIC also designates inspection agencies and laboratories to supplement its own activities as required.

The main functions of EIC are (i) to advise the central government regarding measures to be taken for enforcement of quality control and inspection in relation to commodities intended for export and (ii) to draw up programmes for quality control and inspection of commodities for exports.

In the changing Global Scenario, as India’s trading partners are installing regulatory

import controls, the EIC has re-fashioned its role to develop voluntary certification programmes besides regulatory export control, especially in food sector. The Council is seeking recognition for its certification by official import control agencies of its trading partners, as per provisions of WTO agreements, to facilitate easier access to their markets for Indian exporters.

ActivitiesandAchievements

ExportCertification: Certification continues to be mandatory in the areas of fish & fishery products, milk products, fresh poultry products, egg products, meat & meat products, animal casing, crushed bones, gelatin and honey. The EIAs also continue to certify other notified products such as basmati rice, black pepper etc and non-notified products such as Coir Pith, Tea, and Auto Parts etc. Steps were taken to bring some more areas/products under the certification regime of EIC. These included products such as crushed bones, gelatin, animal feeds and casing

residue Monitoring : Implementation of Residue Monitoring continued to be an important area. Residue Monitoring Plans were implemented in dairy, honey, poultry and egg sectors. During 2013-14, a total number of 897 samples were tested. During April 13 - March 2014, 842 samples have been tested for the entire range of residues relating to pesticides, antibiotics, heavy metals and other chemicals as required by the European Commission.

Certificates of Origin : EIC/EIAs continued to issue Certificates of Origin under various preferential tariff schemes. As on date, EIC

Page 61: Commodity Boards and other Development Authorities ...commerce.gov.in/pdf_download/10.Commodity Boards and other... · Commodity Boards and other Development Authorities, Institutional

CommodityBoardsandotherDevelopm

entAuthorities,InstitutionalTradeFacilitationandPublicSectorCorporations

237Annual Report 2013-14

/ EIAs are issuing preferential certificates of origin under the following 15 schemes.

• Generalized System of Preferences

• Global System of Trade Preferences

• Asia Pacific Trade Agreement

• SAARC Preferential Trading Arrangement

• FTA between India and Sri Lanka

• India Afghanistan FTA

• India Thailand FTA

• India Singapore Comprehensive Economic Cooperation Agreement

• South Asian Free Trade Area

• PTA with Chile

• India MERCOSUR PTA

• India Korea CEPA

• ASEAN India FTA

• India Malaysia CECA

• India Japan CEPA

Whereas for the year 2012-13, the EIAs issued 1008636 preferential tariff certificates under various Preferential Tariff Schemes, during April 13 - March 2014, the number of certificates issued by the EIAs under various preferential tariff schemes stood at 1019411.

StrengtheningLaboratoryCapabilities

EIC is also concentrating on strengthening of its laboratory capabilities. The laboratories at Mumbai, Kochi, Chennai and Kolkata were upgraded with new equipment. New premises for EIA Kolkata lab was finalised and the lab has started functioning from the new premises ensuring that there is better working atmosphere and more credibility is added to the lab network.

ComputerisationandModernisation

• New Project initiative: A new project for complete digital issuance of Certificate of Origin (CoO) under various schemes has also been taken up by the department on the ‘complete managed hosting concept’. Through this system, all types of CoO would be issued online as well as all related fee for CoO could be paid online through various possible payment modes. This system would have more facility as compared to the existing system for issuance of CoO under various schemes and will be more user-friendly. The process of selecting the new vendor is in advanced stages of completion.

• Agreement with M/s PCS was signed to support the Facility Management Services. Under this agreement, M/s PCS maintain the IT-Infrastructures at EIC, EIAs and their sub-offices including website management, provide Data Entry Operators and Resident Engineers for the smooth functioning of the offices.

• To establish a new & better way of communication among the offices of EIC/EIAs and with the stakeholders/customers e-certification systems for Fish and Fishery products intended for exports to European Union were established which has provided for transparency and objectivity to the certification process. This project is has been extended in the scheme of peanuts as well.

Agreements with other Countries

Continued efforts were made towards entering into Memoranda of Understanding (MoUs)/ Mutual Recognition Agreements (MRAs)/

Page 62: Commodity Boards and other Development Authorities ...commerce.gov.in/pdf_download/10.Commodity Boards and other... · Commodity Boards and other Development Authorities, Institutional

238 Annual Report 2013-14

CHAPT

ER-8

Equivalence Agreements with the major trading partners so that EICs certification is accepted by these countries. Effective steps were taken towards negotiating agreements with Israel for food & agricultural items, Brazil for fishery products, Malaysia for groundnuts and Australia for egg products. Further discussions were also held to enter into similar agreements with Japan, Thailand, Mauritius and Sri Lanka. The Agreement with Singapore in the electrical and electronics sector was further streamlined.

exports

The value of exports certified by the EIAs during the year 2012-13 was Rs. 12871.34 crore. During April 13 - March 2014, the value of exports certified by the EIAs was Rs. 13099.63 crore.

The EIAs have also been authorised to issue various types of certificates for consignments exported such as Health, Authenticity, Non-Genetically Modified Organism, etc.

FeesandRevenueGeneration

The basic source of revenue of EIC/EIAs continued to be from monitoring and inspection fee realized for different notified and non notified products as well as certification under GSP and other preferential tariff schemes. The fee charged is at a level of 0.4% of FOB value for products inspected under Consignment wise inspection, while it is 0.2% of FOB value for products under systems certification.

Testing is mostly carried out for samples collected for the purpose of inspection & certification and are generally not charged separately, while some amount of samples

are tested for other government departments and industry on cost basis.

The total revenue generated in 2012-13 by the organization was to the tune of Rs 93.68 crores. The revenue realized between April 13 – March 2014 is Rs 103.59 crores. The break-up of actual fees realised under various schemes and activities during April 13 - March 2014 is given below:

table 8.14

(Rs lakhs)

Schemes/ Activities Actual Fees Realized till 31 March 2014

Inspection & certification

Fish & Fishery Products 1856.44

Basmati Rice 226.14

Black Pepper 83.19

Egg products 101.46

Milk & Milk Products 114.98

Poultry 4.96

Honey 41.96

Chemical & Allied products

31.46

Engineering 69.46

Other Schemes

Others Certification Schemes

1796.11

Total from Inspection Certification

4211.18

Certificate of Origin

Page 63: Commodity Boards and other Development Authorities ...commerce.gov.in/pdf_download/10.Commodity Boards and other... · Commodity Boards and other Development Authorities, Institutional

CommodityBoardsandotherDevelopm

entAuthorities,InstitutionalTradeFacilitationandPublicSectorCorporations

239Annual Report 2013-14

Certificate of Origin 5651.44

Other Income

Other Income 496.41

total 10359.03

Source:DepartmentofCommerce

Footwear Design & Development Institute(FDDI)

Footwear Design & Development Institute popularly known as ‘FDDI’ working under the aegis of the Ministry of Commerce & Industry, Government of India is rated amongst the premier leather products, footwear, fashion, design and retail institution in the world & has been playing a pioneering role in enhancing the competency and performance of the industries globally.

The Institute, having Pan-India presence with eight well designed campuses at Noida, Fursatganj, Chennai, Kolkata, Rohtak, Chhindwara, Jodhpur and Guna is providing trained human resource to the industry.

FDDI has been rated No. 1 institute in a nationwide survey conducted by Competition Success Review ‘India’s Best 'B' Schools

2013’ under the category of Other Promising B - Schools in India and Other Sectorwise Promising B -Schools in India for Retail Management in its November 2013 issue and has also achieved the top position in the “All India Best B- School Survey- 2013” conducted by the leading ‘Business & Management Chronicle’ magazine in its September 2013 issue which proves the authenticity of the programmes, curriculum & placement offered to FDDI graduates.

SupporttoArtisan'Programme:FDDI provided training to workers and artisans involved in the manufacturing of footwear in SME's and village clusters under the `Support to Artisan' Programme. Under the 12th Five Year Plan, FDDI has trained 30402 artisans by 31st March 2014 in the clusters of Jaipur, Alwar, Jodhpur, Churu, Pali and neighbouring Districts in the State of Rajasthan, clusters of Patiala, Malhot, Muktsar, Fazilka, Jalandhar, Ludhiana and neighbouring Districts in the State of Punjab, clusters of Rae Bareli, CSJM Nagar, Unnao, Lucknow, Kanpur and neighbouring Districts in the State of Uttar Pradesh and in the clusters of West Bengal and Maharashtra.

The scope of the training programme included up-gradation of the present skill

Page 64: Commodity Boards and other Development Authorities ...commerce.gov.in/pdf_download/10.Commodity Boards and other... · Commodity Boards and other Development Authorities, Institutional

240 Annual Report 2013-14

CHAPT

ER-8

and induction of latest technology to the artisans to bring 360 degree intervention in the area of technology improvement, effective use of material, tools & techniques for different operation of Footwear Making, Trust Building and SHG Formation, Establishment of Centralized Resource Centers (CRC's), Process Product & Design Development and Development of Market Linkages.

Trainingunder'SupporttoArtisan'Programmeinprogress

The areas of specialization of the training were Cutting, Closing, Designing, Lasting & Sole Adhesion and Finishing.

Placement Linked skill Development Programme (PLsDP):In order to overcome the acute shortage of trained manpower in the leather & footwear industry and to provide gainful employment to the unemployed youth, Department of Industrial Policy & Promotion (DIPP), Ministry of Commerce & Industry, Government of India launched Placement Linked Skill Development Programme (PLSDP). FDDI was also nominated as one of the main implementing agency for this job.

Hence, FDDI established six full-fledged Operator’s Training Centres at Agra, Kanpur, Rae Bareli, Bahadurgarh, Kolkata and Ranipet having state-of-the art- machinery in Cutting and Closing operations.

58

The scope of the training programme included up-gradation of the present skill and induction of latest technology to the artisans to bring 360 degree intervention in the area of technology improvement, effective use of material, tools & techniques for different operation of Footwear Making, Trust Building and SHG Formation, Establishment of Centralized Resource Centers (CRC's), Process Product & Design Development and Development of Market Linkages.

Training under 'Support to Artisan' Programme in progress

The areas of specialization of the training were Cutting, Closing, Designing, Lasting & Sole Adhesion and Finishing.

Placement Linked Skill Development Programme (PLSDP):

In order to overcome the acute shortage of trained manpower in the leather & footwear industry and to provide gainful employment to the unemployed youth, Department of Industrial Policy & Promotion (DIPP), Ministry of Commerce & Industry, Government of India launched Placement Linked Skill Development Programme (PLSDP). FDDI was also nominated as one of the main implementing agency for this job.

49805000502050405060508051005120

5041

5101 5100

5029

5100

5031

Clusterwise detail of Trainees

Page 65: Commodity Boards and other Development Authorities ...commerce.gov.in/pdf_download/10.Commodity Boards and other... · Commodity Boards and other Development Authorities, Institutional

CommodityBoardsandotherDevelopm

entAuthorities,InstitutionalTradeFacilitationandPublicSectorCorporations

241Annual Report 2013-14

At these centres, unemployed youths belonging from the economically weaker section of the society are being selected, trained & provided assistance to get employment in the footwear industry at the shop floor level operations.

Under the PLSDP, FDDI has covered 48663 candidates i.e. 45.50% from SC category, 1028 candidates i.e. 0.95% from ST category, 31972 candidates i.e. 29.60% from OBC category, 24538 candidates i.e. 22.71%

The PLSDP is being conducted on a continuous basis & FDDI has trained 108006 fresh & unemployed youths under the 11th Five Year Plan& the period ending 31st March 2014 of the 12th Five Year Plan of the Government of India.

from General category & 1805 candidates i.e. 1.67% belongs to Minorities. Out of the total trainees, 22772 were female candidates which constitute 21.08% of the total trainees.

0

10000

20000

30000

40000

50000

60000

11th Five Year Plan

12th Five Year Plan (2012-13)

12th Five Year Plan (2013-14)

2200627000

59000

1797320758

47115

Detail of Trainees & Employment provided under PLSDP

No. of Trainees No. of Trainees Placed

60

Revenue Growth: FDDI has made significant progress in the last few years. The total revenue of FDDI for the FY 2013-14 is Rs. 46.78 Crores which is nearly 14 times of that of the earning in the year 2005 (Rs. 3.19 Crores in 2005).

International Consultancy/Tie-Ups For Exchange Programmes: Crossing the national boundaries, the Institute has created a niche for itself in global arena. The leading international institution/organizations like Thomas Bata University (TBU), Czech Republic; ARS Sutoria, Italy; Centre of Excellence for Leather & Leather Goods (COEL) of Bangladesh have been linked up with FDDI and many more are to join hands for

05000

100001500020000250003000035000400004500050000

General SC ST OBC Minorities

24538

48663

1028

31072

8105

Catrgory of Trainees

Page 66: Commodity Boards and other Development Authorities ...commerce.gov.in/pdf_download/10.Commodity Boards and other... · Commodity Boards and other Development Authorities, Institutional

242 Annual Report 2013-14

CHAPT

ER-8

revenue Growth: FDDI has made significant progress in the last few years. The total revenue of FDDI for the FY 2013-14 is Rs. 46.78 Crores which is nearly 14 times of that of the earning in the year 2005 (Rs. 3.19 Crores in 2005).

International Consultancy/Tie-Ups Forexchange Programmes: Crossing the national boundaries, the Institute has created a niche for itself in global arena. The leading international institution/organizations like Thomas Bata University (TBU), Czech Republic; ARS Sutoria, Italy; Centre of Excellence for Leather & Leather Goods (COEL) of Bangladesh have been linked up with FDDI and many more are to join hands for mutual cooperation and support. The delegations from France, Indonesia, Germany, Botswana, Ethiopia, South Africa, Nike-Indonesia have visited FDDI this year.

FDDI is supporting the Leather & Footwear industry in Ethiopia under its ‘Growth & Transformation Plan’ (GTP) for technical upgradation. The project duration shall be of three years (maximum) with projected earning of US$ 1.9 Million out of which US$

9,60,750 Million has already been received by FDDI.

The similar plan for the Local Enterprise Authority (LEA) at Botswana was also undertaken. The LEA has agreed for the intervention by FDDI for the Skill Up-gradation of its staff and clients at Botswana. The revenue for six months of such intervention is US$ 1,94,200.

The MoU with South Africa is also signed on similar lines. Intermittently, FDDI has also provided consultancy to the neighbouring countries such as Vietnam, Sri Lanka, Bangladesh etc.

TestingandOtherSupportServices:

Special initiatives were taken up by FDDI to ensure international standards of facilities and support services at both the International Testing Centers of FDDI (ITC, Noida and Chennai). The International Testing Centers of FDDI today boast the pride of being the only Testing centre of the country having ISO 17025 certification from DAKKS, Germany and the prestigious quality certifications such as - ISO 9001 & ISO 14000.

Page 67: Commodity Boards and other Development Authorities ...commerce.gov.in/pdf_download/10.Commodity Boards and other... · Commodity Boards and other Development Authorities, Institutional

CommodityBoardsandotherDevelopm

entAuthorities,InstitutionalTradeFacilitationandPublicSectorCorporations

243Annual Report 2013-14

62

Training Capacity: Understanding the acute shortage of qualitative trained manpower across levels in the Industry as one of the major hindrances towards development and growth of the sector, FDDI has expanded its training capacity from mere 184 in the year 2005 to 3200 in the academic year 2013-14 which is 5000 proposed in the academic year 2015-16.

Indian Diamond Institute (IDI)

The Indian Diamond Institute (IDI) was established as a Society in the year 1978 at Surat, Gujarat, with the objective of enhancing the quality, design and global competitiveness of the Indian jewellery. The Institute has developed itself as a premier institute for imparting technical skills to the Gems &Jewellery industry. The Institute is sponsored by the Department of Commerce and is a project of Gems and Jewellery Export Promotion Council (GJEPC).

The Institute conducts various diploma and other courses related to diamond &jewellery trade and industry. It also offers the three year diploma course on Diamond, Gem &Jewellery Design & Manufacture. Institute’s Diamond Certification & Grading Laboratory has been recognized world over and its laboratory is also authorised by the DGFT, MOC&I, as per Chapter 4 of FTP 2009-14 for certification / grading of diamonds of 0.25 Ct and above. IDI has been accorded with recognition as a Scientific & Industrial Research Organisation (SIRO) under Department of Scientific & Industrial Research, Ministry of Science & Technology, Government of India. It has been also recognised as Anchor Institute (Gem &Jewellery) by Industries Commissionerate, Government of Gujarat.

PUBLIC SECTOR CORPORATIONS

0

500

1000

1500

2000

2500

3000

3500

4000

4500

5000

190 220340

700940

1020

1460

2010

26803200

4000

5000FDDI - Training Capacity

FDDI laboratories have extended the services to include site inspection of footwear, garments, leather goods & accessories as per International Standards. This will help in quality supply for various Government organizations/institutions. Exporters can also get benefit of the services.

R & D Activities : Being an apex Institute for footwear, the Institute has always been a trendsetter and has made remarkable progress by developing methodologies in footwear research. Safety Shoes for Indian Navy have been developed, Boot ankle leather derby type direct moulded PU midsole &moulded TPU sole have been developed for Delhi Police apart from development of Marching Boots.

Academic Programmes : FDDI conducts wide range of Under Graduate, Post Graduate & Integrated professional programmes in the area of Footwear Design, Technology, Management, Creative Designing & CAD/CAM, Leather Goods & Accessories Design, Fashion Merchandising, Visual Merchandizing, Marketing and Retail Management etc. thus, providing trained high-class professional,

managers, fashion designers, technologists to keep pace with the growing demand of the industry and maintaining uniformity in teaching standard at all of its campuses.

The professional programmes are conducted by FDDI’s School of Footwear Design & Production Management (SFDPM), School of Retail Management (SRM), School of Leather Goods and Accessories Design (SLGAD), School of Fashion Design (SFD) and School of Business Management (SBM).

training Capacity: Understanding the acute shortage of qualitative trained manpower across levels in the Industry as one of the major hindrances towards development and growth of the sector, FDDI has expanded its training capacity from mere 184 in the year 2005 to 3200 in the academic year 2013-14 which is 5000 proposed in the academic year 2015-16.

IndianDiamondInstitute(IDI)

The Indian Diamond Institute (IDI) was established as a Society in the year 1978 at Surat, Gujarat, with the objective of enhancing the quality, design and global

Page 68: Commodity Boards and other Development Authorities ...commerce.gov.in/pdf_download/10.Commodity Boards and other... · Commodity Boards and other Development Authorities, Institutional

244 Annual Report 2013-14

CHAPT

ER-8

competitiveness of the Indian jewellery. The Institute has developed itself as a premier institute for imparting technical skills to the Gems & Jewellery industry. The Institute is sponsored by the Department of Commerce and is a project of Gems and Jewellery Export Promotion Council (GJEPC).

The Institute conducts various diploma and other courses related to diamond &jewellery trade and industry. It also offers the three year diploma course on Diamond, Gem &Jewellery Design & Manufacture. Institute’s Diamond Certification & Grading Laboratory has been recognized world over and its laboratory is also authorised by the DGFT, MOC&I, as per Chapter 4 of FTP 2009-14 for certification / grading of diamonds of 0.25 Ct and above. IDI has been accorded with recognition as a Scientific & Industrial Research Organisation (SIRO) under Department of Scientific & Industrial Research, Ministry of Science & Technology, Government of India. It has been also recognised as Anchor Institute (Gem & Jewellery) by Industries Commissionerate, Government of Gujarat.

PUBLIC seCtor CorPorAtIons

(i) Minerals and Metal trading CorporationsLimited(MMTC)

MMTC is widely recognized as one of the largest International Trading Companies of India and the first Public Sector Undertaking to be awarded “Premier Trading House” status in the country. It is actively involved in exploring overseas markets for exports and sourcing material for domestic needs. With focus on ‘bulk’ operations, MMTC primarily has six core commodity groups viz. Minerals, Precious Metals, Coal & Hydrocarbons, Fertilizers, Agro commodities and Metals.

Financial Performance

During FY 2013-14, the company achieved a turnover of Rs. 25,075 crores with 38% increase in exports segment of the company over previous year. Also, company has achieved a net profit of Rs 19 crores as compared to last year’s Net Loss of 71 crores showing 126% increase.

table: 8.15 FinancialperformancefortheFY2013-14vis-à-visFY2012-13

(Rs. in Crores)

trADe PerForMAnCe Financial Performance FY2012-13

Financial Performance FY2013-14

Increase/ (Decrease)

%Exports 2,980 4,127 38.49Imports 20,954 18,714 (10.69) Domestic 4,482 2,234 (50.16) Total Turnover 28,416 25,075 (11.76)ProfitBeforeTaxFromOrdinaryActivities 117 225 92.31Profit After Tax (Net Loss) (71) 19 126.00 Net Profit To Turnover (%) - 0.08 -

Page 69: Commodity Boards and other Development Authorities ...commerce.gov.in/pdf_download/10.Commodity Boards and other... · Commodity Boards and other Development Authorities, Institutional

CommodityBoardsandotherDevelopm

entAuthorities,InstitutionalTradeFacilitationandPublicSectorCorporations

245Annual Report 2013-14

COMPUTERISATION&TECHNOLOGYeLevAtIon

During this period, MMTC has initiated process by engaging a consultant for up gradation of present ERP system with latest and most suitable ERP solution based on changed business processes of the company. The company has successfully continued with e-payments, e-tendering & e-auction platform for enhanced transparency, accuracy and reliability.

Also, IT systems security management has been further improved through deployment of layered security set-up leading to higher level of security, reliability and availability of system. Applications were deployed to enhance the quality of retail business management and also for increased customer satisfaction.

sUBsIDIArY CoMPAnY

MMTC Transnational Pte Ltd., Singapore (MTPL) is a wholly owned subsidiary company of MMTC. During FY 2013-14, it has achieved a business turnover of US$ 369 million (unaudited). MTPL continues to enjoy prestigious "Global Trader Programme" (GTP) status awarded to it by International Enterprise, Singapore since FY 2000.

To expand and give impetus to growing trade between India and Africa, MMTC has opened an office at Johannesburg, South Africa in January 2011.

Infrastructure Development NEELACHALISPATNIGAMLTD.(NINL)

NeelachalIspat Nigam Ltd., a company promoted by MMTC, IPICOL, NMDC, MECON

etc., has set up an integrated iron & steel plant of 1.1 million tones capacity, coke oven of 0.8 million tonne capacity along with a by-product plant, captive power plant of 62.50 MW steel melting shop, BOF, GCP, CCP etc. with total expenditure of nearly Rs. 3,500 crore of Kalinganagar, District Jajpur, Orissa.

The total turnover of the company for the period April-March, 2014 is Rs.1,625.61 crore. The Phase II of the project Steel Making Facilities through Siemag, Germany with an estimated cost of Rs.1,640 crores is completed and production of steel billet has already commenced during FY 2013-14.

OtherProjects

Aiming at diversification and with a view to add value to its existing trading operations, the Company has undertaken various strategic initiatives following public-private partnership route. The initiatives taken by MMTC are - MMTC-Pamp India Private Limited, Retailing Jewellery joint venture - MMTC-GitanjaliPvt. Ltd, Iron ore berth at Ennore Port - M/s.SICAL Iron Ore Terminals Limited (SIOTL), TM Mining Ltd (TMML) for mining exploration, Free trade and warehousing zones at Haldia and Kandla, Exploration and development for Coal mining at Gomia in Jharkhand State.

ores & Minerals

MMTC’s export of ores and minerals were estimated at Rs 2,037 Crores during 2013-14 registering a growth of 46 per cent over the same period of the previous year.

HumanResource

Total manpower of the company as on 31st March, 2014 was 1513* (569 officers and

Page 70: Commodity Boards and other Development Authorities ...commerce.gov.in/pdf_download/10.Commodity Boards and other... · Commodity Boards and other Development Authorities, Institutional

246 Annual Report 2013-14

CHAPT

ER-8

944 staff) comprising of 331 SCs, 130 STs, 133 OBCs, 34 PWDs and 310 women employees.

* Includes 5 Directors, CVO and MICA employees.

weLFAre MeAsUres In resPeCt oF sC/st/ PwD

There is a Chief Liaison Officer at CO and Liaison Officer at ROs to ensure compliance of Presidential directives in regard to facilities/ concessions available for reserved category employees. Permanent ramp at the main entrance of office, wheel chairs, lifts equipped with auditory signals, floor requisition buttons in Braille Symbols for visually handicapped employees are provided at all offices.

IMPLeMentAtIon oF oFFICIAL LAnGUAGe

To promote usage of the Official Language by employees of the company, several programs in the form of Hindi Workshops, Hindi Week/ Fortnight were organized at the Corporate Office and Regional Offices.

Corporate social responsibility

There were no profits for the year 2012-13, thus no funds were earmarked for CSR/SD Projects. However a total of Rs. 65.08 lakhs, the unutilized funds of previous years, was spent on CSR/SD projects.

Two major projects were undertaken: 1) Employment linked skill development training for 180 candidates in Jajpur, Odisha and Energy Efficiency measures in MMTC Owned premises.

Apart from this, MMTC also contributed towards the CM Relief Fund for the Odisha Cyclone- Phailin and distributed blankets to

the night shelters in Delhi& Rajasthan. Other activities focused on education of children living in slums and skill development of differently-abled persons of Delhi which were also undertaken.

GenderInitiativesUndertaken

Congenial atmosphere prevails for working women in office. There is a Committee on prevention of sexual harassment to working women employees at Corporate Office and Regional Offices headed by senior level executives.

Information On New Initiatives And IdeasAdopted

Scheme for Knowledge Sharing introduced in the Company with the objective of updating business related knowledge of employees. Besides, employees are encouraged to put forth their ideas for improvement in trade and service matters.

MajorAchievements

• Most Caring Companies of India Award - for contributions made in the field of CSR – by The World CSR Congress.

• Star Performer Award for the year 2011-12 in the product group of Basic Iron and Steel (Large Enterprise) by EEPC (National Award).

• Top Exporters for the year 2010-11, Silver Trophy, Medium Enterprise by EEPC India (N.R.).

• TCC Exim Award (II position) in the import category for 2011-12 by The Tamil Chamber of Commerce, Chennai.

• 11th Rank in 2012 on the basis of net sales and 14th rank in terms of Market

Page 71: Commodity Boards and other Development Authorities ...commerce.gov.in/pdf_download/10.Commodity Boards and other... · Commodity Boards and other Development Authorities, Institutional

CommodityBoardsandotherDevelopm

entAuthorities,InstitutionalTradeFacilitationandPublicSectorCorporations

247Annual Report 2013-14

Capitalization by Business India’s Super 100 rankings published in Business India on 23rd December 2012.

THE STATE TRADING CORPORATION OFInDIA LtD. (stC)

STC was set up on 18th May 1956 primarily with a view to undertake trade with East European countries and to supplement the efforts of private trade and industry in developing exports from the country. Since then, STC has played an important role in country’s economy. It has arranged imports of essential items of mass consumption (such as wheat, pulses, sugar, edible oils, etc.) and industrial raw materials into India and also contributed significantly in developing exports of a large number of items from India. The core strength of STC lies in handling exports/imports of bulk agro commodities. Over the years, STC has also diversified into exports of steel, iron ore, molasses and imports of bullion, hydrocarbons, minerals, metals, fertilizers, petro-chemicals, etc. STC is today able to structure and execute trade deals of any magnitude, as per the specific requirement of its customers.

table: 8.16 PerformanceofSTCduring2011-12,

2012-13and2013-14 (` Crore)

2011-12Actuals

2012-13Actuals

2013-14Actuals

Exports 344 1563 1781

Imports 29961 17015 13546

Domestic 139 120 47

Total Turnover 30444 18698 15374

Profit Before Tax 17.80 14.42 (-)492

Performance2013-14

During the year, total turnover of STC amounted to ` 15,374 crore as against ` 18,698 crore in 2012-13. The decline in turnover vis-à-vis previous year was mainly due to lower allocations made by GOI for import of urea leading to reduce imports.

exports

During the year, STC achieved an export turnover of ` 1,781 crore – the best performance during the past five years.

STC continued to undertake export of wheat as one of the nominated CPSEs out of the surplus stocks of wheat held by FCI. A total quantity of 10 lakh MT of wheat was contracted for exports during the year and the same resulted in a turnover of ` 1,774 crore as against wheat export turnover of ` 1,525 crore in the previous year. STC also exported tea worth over ` 4 crore.

Imports

The import turnover at ` 13,546 crore was 20% lower than the previous year mainly due to reduced imports of urea handled by the Company on behalf of GOI.

Imports of bullion by STC continued to be hit due to restrictions on gold imports by way of increase in customs duty and changes in the policy of gold import aimed at controlling the current account deficit. However, the Company successfully imported and sold bullion worth ` 11,654 crore – marginally higher than sales worth ` 11,258 crore made in 2012-13. Thus, bullion once again emerged as the single largest item of STC’s imports.

During 2012-13, the Company had imported urea worth ` 5127 crore (2.04 million MT) on

Page 72: Commodity Boards and other Development Authorities ...commerce.gov.in/pdf_download/10.Commodity Boards and other... · Commodity Boards and other Development Authorities, Institutional

248 Annual Report 2013-14

CHAPT

ER-8

behalf of GOI. Imports of urea came down to less than one third at ` 1495 crore (0.73 million MT) during 2013-14 due to lower authorisations by the GOI.

During the year, the Company was able to develop import of coal/coke for private parties and effected sales worth ` 220 crore as against total import sales of ` 121 crore in the previous year.

Imports of edible oils and pulses were adversely affected during the year due to no imports of these two items for Public Distribution System. Import sales of edible oils and pulses on commercial account amounted to ` 69 crore and ` 34 crore respectively.

The Company imported maize amounting to ` 60 crore on behalf of actual users under Tariff Rate Quota (TRQ) Policy of the Govt. of India as against ` 35 core worth of maize imported during 2012-13.

Domesticsales

During the year, domestic sales by the Company amounted to ̀ 47 crore contributed mainly by jute goods (` 19 crore), iron ore pellets (` 16 crore) and chana (` 6 crore).

Profitability

During the year, the Company earned a trading profit of ` 183 crore, which was 54% higher than the trading profit of ` 119 crore earned in 2012-13. On an overall basis, the Company reported a loss of ̀ 492 crore during the year as against a profit before tax of ` 14 crore during 2012-13. However, the loss was due to provisions & write-offs (net) of ` 566 crore made for doubtful debts/advances as a matter of prudence.

Activities of STC in The North Easternregion

The State Trading Corporation of India Ltd. (STC) has a Branch Office in Kolkata which is engaged in export, import and domestic trading from West Bengal and North Eastern States of the country. The Branch is involved in trading of edible oil, bullion, manganese ore, coal, jute, tea etc. The Branch is exploring possibility of tying up with BPCL (one of the major manufacturer and supplier of Bitumen) through associates in Guwahati and is in touch with various organizations viz APO, BRO, State Governments in the North Eastern States and Sikkim for marketing and supply of Bitumen.

Branch has supplied huge quantities of Tea to Assam Rifles in the past and is now making efforts for supply of Dry Ration viz. Rice, Wheat , Atta, Edible Oil, Salt, etc.

weLFAre oF sC/sts

The Company has been implementing the policies, directives and guidelines issued by the Government of India from time to time with regard to recruitment of SC/ST/OBC and differently abled candidates. During the year, 5 candidates from SC category, 1 from ST, 5 from OBC and 2 from minority category were recruited by the Corporation.

sPICes trADInG CorPorAtIon LIMIteD (stCL)

STCL was originally incorporated in the name and style as “Cardamom Trading Corporation Limited” as a Private Limited Company under The Companies Act, 1956 in October 1982.

With the diversified trading activities, the company’s name has been further amended its name from Spices Trading Corporation

Page 73: Commodity Boards and other Development Authorities ...commerce.gov.in/pdf_download/10.Commodity Boards and other... · Commodity Boards and other Development Authorities, Institutional

CommodityBoardsandotherDevelopm

entAuthorities,InstitutionalTradeFacilitationandPublicSectorCorporations

249Annual Report 2013-14

Limited to “STCL LIMITED” and fresh Certificate of Incorporation under the name of STCL Limited has been obtained with effect from August 13, 2004.

Objectives:

• To trade in spices, other agricultural commodities, fertilizers, pesticides in the domestic as well as global markets.

• To develop core competitiveness in selected areas and exploit the market opportunities in these areas to the best advantage of the Company and to lay emphasis on quality of services to its Clientele in the long-term business relationship.

• To promote sale / export of Indian Spices and other Agricultural commodities.

• To make optimum utilization of infrastructure available with the Company.

• To strive to pay adequate returns to the parent company (The State Trading Corporation of India Limited).

• To fulfil Company’s social responsibility by following ethical business practices and reinforcing commitment to customers, employees, partners and communities.

• To undertake on a continuous basis training/re-training of existing manpower and induct professionally qualified young talent so as to create a cadre of highly professional and motivated managers.

• To become a credible company of international standards of Corporate governance and offer quality services.

PerformanceThe company has been incurring losses from the year 2008-09 and the net worth of the company as on 31.03.2013 is [-] Rs.2012.13 crores. During 2012 the company engaged the services of a consultant to assess its sustainability due to continuous losses incurred. Based on the recommendation of the consultant the Board decided to windup the company and offer Voluntary Separation Scheme to its employees. The proposal of winding up was forwarded to its parent company M/s. STC of India and the Ministry of Commerce. The Union Cabinet in its meeting held on 13.08.2013 had approved the winding-up of the company. Accordingly, the company has filed an application in the Hon’ble High Court of Karnataka for compulsory winding-up of the company u/s 433 [a] of The Companies Act, 1956.

The performance of the company for the year 2012-13 vis-à-vis previous year is summarized below:

table 8.17 Rs. in crore

Particulars 2012-13 2011-12IncomeSale of Goods 102.43 127.78Sale of Services 2.86 4.21Interest Income 0.72 0.81Other Trade Revenues 0.27 0.15Other Receipts 3.24 2.96

109.52 135.90FinancialTrading Profit 2.83 3.49Profit/[Loss] before Tax

-296.12 -284.66

Net worth -2102.13 -1806.00

Page 74: Commodity Boards and other Development Authorities ...commerce.gov.in/pdf_download/10.Commodity Boards and other... · Commodity Boards and other Development Authorities, Institutional

250 Annual Report 2013-14

CHAPT

ER-8

service to farmers:

• The presence of STCL in Plantation areas in the State of Karnataka and effects distribution of fertilizers, agro chemicals and other inputs manufactured by reputed companies at competitive prices and thus the farmers’ interest are not exploited by the middlemen and traders. The timely supply of fertilizers had helped the farmers in carrying out their fertilizer application/operations on time, which has boosted their productivity / production.

• STCL is regularly conducting cardamom Auctions and due to good auctioning practices, adopted, the growers are assured of realizing reasonable price for their produce. The auction practices followed are also benchmark for other auctioneers.

• STCL has established Chilli Processing Plant at Byadgi in Haveri District of Karnataka and Steam Sterilization Unit at Chhindwara, Madhya Pradesh. These projects help the growers to get remunerative price by value addition

for their produce. These Projects shall achieve the following objectives:

• To encourage farmers to produce organic and conventional spices (Black pepper and chillies to meet the export demand.

• To increase the export share of value added products from India to the world spice market.

• To help farmers to have higher realization.

ProJeCt AnD eQUIPMent CorPorAtIon LtD (PeC).

PEC Ltd. was formed on 21st April, 1971 as a wholly owned subsidiary of STC. PEC Limited became an independent Company under the Department of Commerce w.e.f. 27th March, 1991. PEC is primarily engaged in export of projects, engineering equipment, manufactured goods, defence equipment & stores, and import of industrial raw materials, chemicals, bullion and agricultural commodities. As part of activities aimed at export and import of projects and goods, PEC engages in counter trade and operates special trading arrangements for exports.

table 8.18 PerformanceoftheCorporationsince2011-12

Rs. crore

Items 2011-12 2012-13 2013-14targets

2013-14(P) 2014-15targets

Sales Turnover 11026.27 11649.02 12000.00 *9700.00 12500Income 159.73 159.63 182.75 100.45 134.65Expenditure 41.19 46.56 55.35 46.45 49.65Profit before Tax 118.53 113.07 127.40 54.00 85.00Profit after tax 79.55 96.95 84.40 36.00 56.60

Page 75: Commodity Boards and other Development Authorities ...commerce.gov.in/pdf_download/10.Commodity Boards and other... · Commodity Boards and other Development Authorities, Institutional

CommodityBoardsandotherDevelopm

entAuthorities,InstitutionalTradeFacilitationandPublicSectorCorporations

251Annual Report 2013-14

Items 2011-12 2012-13 2013-14targets

2013-14(P) 2014-15targets

Dividend & Corporate tax 17.43 17.55 20.00 17.55 17.55Equity 20.00 60.00 60.00 60.00 60.00Reserves 327.63 302.04 407.03 320.49 380.15Net Worth 347.63 362.04 467.03 380.49 440.15*IncludesBullion–Rs.2040crore.

During the year 2012-13, PEC achieved sales turnover of Rs. 11649 crore which includes exports at Rs. 3029 crore, imports at Rs. 6960 crore and domestic sales at Rs.1659 crore. Its Earning Per Share (Basic & diluted) was Rs. 162 during the year 2012-13 as compared to Rs. 133 in the previous year. During the year 2013-14, as against MOU target of Rs. 12000 crore, the Company registered a turnover of Rs. 9700 crore upto 31st March, 2014.

table 8.19 Exports&Importssince2011-12

exports Rs. crores

Item 2011-12 2012-13 2013-14(P)

Agro commodities

622 2917 2540

Minerals (Iron Ore)

392 - -

Engineering & Manufactured Goods

23 45 60

Others - 67 - t o t A L 1037 3029 2600

Imports

Agro Commodities

1775 1757 1200

Industrial Raw material

5242 3758 1695

Bullion (including Diamond)

971 1273 2090

Engineering & Manufactured Goods

149 115 15

Others 54 57 - t o t A L 8191 6960 5000

PEC’s agro-exports have increased significantly in recent years. During the year 2012-13, PEC exported wheat, rice, soya meal and maize, of which the major component was wheat valued at Rs. 2191.90 crore. PEC also executed contracts for supply of line hardware, cables & conductors, insulators, steel wires, etc. to Ethiopia, Kenya, Liberia, Nepal and Bhutan.

KeyInitiatives

Over the years, business of PEC has transformed, with industrial raw material, commodities and bullion constituting major part of its turnover and profit. Some of the key initiatives of PEC are aimed at consolidation of existing line of business and selective diversification into sustainable business areas, so as to improve operational

Page 76: Commodity Boards and other Development Authorities ...commerce.gov.in/pdf_download/10.Commodity Boards and other... · Commodity Boards and other Development Authorities, Institutional

252 Annual Report 2013-14

CHAPT

ER-8

efficiency and achieve cost effectiveness. PEC continues to strive in its efforts to capture new opportunities in international as well as domestic trade and looks forward to implement higher targets in future, as mandated by the Department of Public Enterprises.

Public redressal Mechanism

The Company has a proper mechanism for registration and time bound disposal of grievances received from the public. Grievance officers both for Public and Staff grievances have been designated, and their details and contact information is uploaded on the PEC website. A complaint box has been placed at reception and Vigilance Cell. Further, a link to http://pgportal.gov.in under the heading “Public Grievances” on the home page of PEC’s website has been provided to help citizens lodge/monitor the grievances electronically. Any member of the public who has any grievance against the company or wants any information/clarification etc. may approach Public Grievance Redressal Officer whose details are available on the corporation’s website, namely, www.peclimited.com.

IndiaTradePromotionOrganisation(ITPO)

India Trade Promotion Organisation (ITPO) is the premier trade promotion agency of India, provides a broad spectrum of services to trade and industry and acts as a catalyst for growth of India’s trade.

With its Headquarters at Pragati Maidan, New Delhi and regional offices at Bangalore, Chennai, Kolkata and Mumbai; ITPO ensures representative participation of trade and

industry from different regions of the country in its events in India and abroad.

FinancialHighlights

During 2013-14, ITPO’s total income would be Rs.341 crore (provisional) as compared to Rs.336.48 crore in 2012-13 while the total expenditure is anticipated at Rs.191 crore (provisional) as against Rs.184.19 crore incurred in 2012-13. ITPO is anticipating a surplus of Rs.160 crore (provisional) in 2013-14 as compared to actual surplus of Rs.152.29 crore in 2012-13.

Fairs In India :

IndiaInternationalLeatherFair,NewDelhi

The 3rd edition of India International Leather Fair was organized at Pragati Maidan, New Delhi July 4-6, 2013 with the active support of Council for Leather Exports (CLE), Central Leather Research Institute (CLRI), Indian Shoe Federation (ISF), Indian Footwear Components Manufacturers Association (IFCOMA), and Indian Finished Leather Manufacturers Association (IFCOMA) and Indian Finished Leather Manufacturers Association (IFLMEA). The fair covered a gross area of 4000 sq. mtrs. There were 105 exhibitors, including 38 from overseas countries mainly from China, Taiwan, Germany and Italy. The business visitors numbering 4847 visited the fair, out of which 49 were from overseas from countries such as China, UAE, UK, USA, Nepal, Afghanistan, Serbia, Jordan, Turkey, Italy, France etc.

Compared with IILF Delhi 2012, the number of trade visitors to IILF Delhi, 2013 increased by 39% whereas the area marketed increased by 14%.

Page 77: Commodity Boards and other Development Authorities ...commerce.gov.in/pdf_download/10.Commodity Boards and other... · Commodity Boards and other Development Authorities, Institutional

CommodityBoardsandotherDevelopm

entAuthorities,InstitutionalTradeFacilitationandPublicSectorCorporations

253Annual Report 2013-14

IndiaInternationalPrinting&PackagingFair,new Delhi

The maiden event of India International Printing & Packaging Fair organized by ITPO was held at New Delhi during August 6-9, 2013, in an area of 437 sq.mtrs. There were 32 participants who exhibited their products in the event. The visitors to the exhibition were from Australia, China, Iran, Japan, Kazakhstan, Nepal, Nigeria, Russia, Singapore, Sri Lanka, UAE, UK and USA.

19th Delhi Book Fair, new Delhi

The 19th edition of Delhi Book Fair was organized by ITPO in collaboration with Federation of Indian Publishers for the event held during August 23-31, 2013 at Pragati Maidan. There were about 200 participants from India and abroad who participated in the Fair in an area of 4,434 sq.mtrs. “Libraries & Readership” was chosen as the theme for the event. Seminars were also organized during the currency of the event, including a debate amongst University students on “Environmental Disaster caused due to Development of Vulnerable of Hilly Areas”. Awards of ‘excellence’ in displays were also distributed in three categories, viz. Hindi, English & Regional languages.

other fairs

Stationery Fair 2013, Aahar International Food Fair, Bangaluru, 16th India International Security Expo .2013, New Delhi, Auto Ancillary Show, October 25-28, 2013, Pune, India International Leather Fair, February 1-3, 2014, Chennai, Aahar – The International Food & Hospitality Fair, New Delhi, Kosmetika’ 2014, March 25-30, 2014, Pragati Maidan, 19th edition of International Leather Goods Fair, Kolkata

Fairs Abroad

Delegations:ITPO hosted the followingduringtheperiod2013-14:

• Delegation from Taipei Economic and Cultural Center for exploring trade opportunities in respective countries.

• Delegation from Malaysia-India Chamber of Commerce (MAICOM), KualLampur, Malaysia to discuss mutual cooperation between ITPO and MAICOM. .

• Meeting with the representatives of Delhi Exporters Association.

• A five-member Delegation from Korea to discuss development in Trade Promotions between ITPO and Korea

synergy with trade Bodies/ePCs/Associations:

• A meeting with the representatives of EPCs, Trade Bodies and Govt. Deptts under the chairmanship of CMD,ITPO was held on 22.1.2014 in PragatiMaidan, New Delhi. It was the first such meeting held with EPCs, Trade Bodies and Govt. Deptts to involve them in ITPO’s overseas activities for FY 2014-15.

• A meeting was held in December’2013 with The Southern Gujarat Chamber of Commerce by CMD, ITPO to discuss regarding participation of overseas as well as domestic fairs of 2014-15

• During the year 2013-14 ITPO has organized national level participation in 24 overseas trade fairs including two mini India shows in Osaka, Japan.

Out of 24 events, 9 are in Europe, 5 in Africa/WANA, 5 in LAC/NAFTA, 4 in Asia, 1 in CIS region

Page 78: Commodity Boards and other Development Authorities ...commerce.gov.in/pdf_download/10.Commodity Boards and other... · Commodity Boards and other Development Authorities, Institutional

254 Annual Report 2013-14

CHAPT

ER-8

Brand India show:

34th India Garment Fair and 24th India Home Furnishing Fair 2013

During the year, ITPO organized two exclusive Indian commodity shows in Japan- 34th India Garment Fair and 24th India Home Furnishing Fair 2013

These shows for Home Furnishing and garments being organized annually for the last several years are well establish and have become major sourcing avenues for these products.

The simultaneous organization of the shows for furnishing and garments during 2013 provided ample opportunity for buyers and sellers to conduct business under one roof not only in terms of home furnishing but also in Garments. These two events together generated business worth US$ 36.67 million and were attended by 2149 business visitors

In 2012-13 the total area sold in India Garment Fair and India Home Furnishing Fair, Osaka (Japan) was 933 sqm with 65 participants whereas in 2013-14 the total area sold was increased to 1449 sqm with 111 participants.

New Events :

• Beauty World Middle East, Dubai (UAE) (May 28-30,2013)- ITPO’s has organized India’s for the first time in an area of 117 sqm with 11 participants.

• 11th Indian Global Festival 2013,Kuala Lumpur (Malaysia) June 5-9,2013— ITPO’s participation was organized for the first time in an area of 260sqm with 31 Indian companies.

• Intersec, Dubai (UAE) - ITPO has organized India’s participation in Intersec, Dubai, UAE from January 19-21, 2014 in an area of 389 sqm. 31 Indian companies participated in the show and generated business amounting to Rs. 15 crores.

Networking With Trade PromotionOrganisations(TPO’s)AndOtherActivities

ITPO has been actively participating in Asian Trade promotion Forum (ATPF), a gathering of Trade Promotion Organizations (TPOs) since very beginning. All the activities of ATPF are coordinated by Japan External Trade Organization (JETRO). Under the programme, the working-level meeting with representatives of the TPOs of the member countries and the meeting of the CEOs of the member organizations is held annually. India is a also a member of the India Convention Promotion Bureau (ICPB) and participates in the activities organized by the ICPB. ITPO also signed an MoU with Visvesvaraya Industrial Trade Centre (VITC), Karnataka for co-operation in promoting the industry and exports from the region.

TradeDelegations

Seventy Trade delegations visited India Trade Promotion Organisation from April 2013 till March, 2014. These included delegations from The Export Promotion Council of Kenya, the Togolese Centre for Exhibitions and Fairs of Lome, Togo, three member delegation from the Hong Kong Trade Development Council, South Africa and China which visited ITPO for exploring the opportunities for collaboration in development programmes through MoUs and for organising of exhibitions in India.

Page 79: Commodity Boards and other Development Authorities ...commerce.gov.in/pdf_download/10.Commodity Boards and other... · Commodity Boards and other Development Authorities, Institutional

CommodityBoardsandotherDevelopm

entAuthorities,InstitutionalTradeFacilitationandPublicSectorCorporations

255Annual Report 2013-14

TradeInformationActivities

ITPO is running a physical and electronic library in Business Information Centre (Hall No. 19), Pragati Maidan, New Delhi which is visited by trade visitors for seeking information and guidance for promotion of trade/business. As to keep the library up to date with recent information, about 107 nos. of periodicals with about 118 titles trade related and about 15 CD-ROMs were added in the Centre during 2013-14.

BusinessInformationCentre

With a view to provide reliable trade information to Indian exporters and overseas buyers, ITPO has set up the Business Information Centre and Trade Portal www.tradeportalofindia.org at Pragati Maidan. ITPO is maintaining and operating a Trade Portal ‘www.tradeportalofindia.org’, which was set up by the Government of India under the EU –India Trade Investment and Development Programme for promoting trade between India and EU. This portal, besides providing information on the Indo-EU countries, covers other countries and regions as well. It also offers linkages to relevant government websites that provide information access, both off-line and online, on countries, trade statistics, market surveys, sector- based information and statistics, country regulations, trade events, business directory etc. At present this portal contains information on more than 100 countries including 27 countries of EU.

Future PlansAs per the decision taken by the Central Govt., ITPO was directed to undertake the project for redeveloping the present Pragati Maidan complex into a state-of-the art Integrated Exhibition-cum-Convention Complex to support G-to-G, G-to-B and B-to-B conventions and exhibitions.

This project envisages development of 1,00,000 sq. mtrs. of Exhibition space in Phase I (Design Year 2020) and further capacity addition of 1,00,000 sq. mtrs. addition in Phase II (Design Year 2030) and Convention centre facilities with a plenary hall of at least with a capacity of more than 4000 pax. capacity is being envisaged with total built up area of 3,26,065 sq. mtrs. including basement of about 1,66,130 sq. mtrs. for accommodating about 4,800 PCUs. This project envisages wherein demolition of State Pavilions and Central Ministries halls shall be essentially required for implementation of the project. For implementing the project, an AMPC have been appointed.

Implementation of Phase-I is planned to commence from 2014-15; where selection of Project Executor(s), planning and designing of architectural concept and consequently electrical & mechanical services and other desired state-of-the-art facilities are to be undertaken. Submission of building plans for approval from various statutory and regulatory authorities are planned during 2014-15, as also, development of systems for execution/management of this iconic project for ensuring quality & timely completion.