Commodity Boards and other Development Authorities, Institutional ...

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Chapter-8

Commodity Boards and other Development Authorities, Institutional Trade Facilitation

and Public Sector CorporationsOne of the key focus areas of DOC is the plantation sector and the commodity boards form part of the major schemes of DOC. The major items of Indian exports include plantation, marine products, agriculture and allied products. This category covers agriculture, plantation crops, marine products and iron-ore exports. Focus of agriculture policy in India has been on self reliance in food grains and other commodities. During the Eleventh Five Year Plan agricultural exports improved from US$ 6.01 billion in 2006-07 to US$ 18.19 billion in 2011-12. India’s share in global exports is 1.7% and it ranks 11th in the world.

As per WTO International Trade Statistics, 2012 (based on trade in 2011), global export and import of agri and food products is USD 1.66 trillion and USD 1.82 trillion respectively. India has improved its position in the global trade of agri and food products in last five years and also has improved its ranking and percentage share. India’s share in export and import are 2.1% (USD 34.0 billion) and 1.3% (USD 23.0 billion) respectively. India’s position has improved to 10th amongst leading exporters of Agricultural Products in the world.

Agriculture continues to be the mainstay of the Indian economy. The varied agro climatic conditions available for year round production of a wide range of agri-product helps in serving strategic geographical locations to serve the markets in Asia, Europe and Africa. There is potential for increasing yields in many crops in sizable part of the country. FDI in retail is expected to impact backward linkages

and improvements in infrastructure for storage and movements are required.

Exports of agricultural products are dependent on several factors such as global demand and supply, consumer preferences, varieties traded, quality, domestic and international prices and availability of infrastructure facilities for storage, post harvest handling, quality and adherence to sanitary and phyto-sanitary standards, cost competitiveness etc. In spite of maintaining availability in domestic market, the export of agri & allied products has maintained its growth during 2011-12. India’s export of agriculture and allied sector grew @ 67.96% from Rs. 78,854.31 crore in 2010-11 to Rs. 1,32,447.51 crore in 2011-12.

Some of the policy measures would entail facilitating corporate investment in commercial agriculture/horticulture for export purposes, Promoting culture of use of common infrastructure for value addition by farmers and SMEs in food processing, Promotion of contract farming/partnership farming for organized retail and export purposes and a Stable export policy for agri products and if necessary allow import of raw material for export of value added items.

Revitalizing plantations, enabling a less controlled regime for agriculture, and aiming at greater value addition and processed products would help increase value of exports. For instance, processed foods and vegetables, organic agricultural produce, and fresh agricultural produce for retail in supermarkets, holds out greater promise.

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CHAPTER-8 Commodity Boards and other Development Authorities, Institutional Trade Facilitation and Public Sector Corporations

The Indian plantation sector is faced with problems of declining productivity, high cost of production and deterioration in quality on account of ageing bush/ plant profile. Recognizing this replantation and rejuvenation of old plantation tracts have been identified as important ‘thrust areas’ by the government. A massive programme was initiated during the 11th Plan period to replant old and unproductive tracts with high yielding varieties of plantation species to increase the productivity levels.

The present chapter comprises of the following topics:

A. COMMODITY BOARDS AND OTHER DEVELOPMENT AUTHORITIES

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 FACILITATION INSTITUTIONS

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. PUBLIC SECTOR CORPORATIONS

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)

COMMODITY BOARDS AND OTHER DEVEL-OPMENT AUTHORITIES

i) 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, Tamil Nadu and Kerala

account for about 95 % 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. The

teas originating from Darjeeling, Assam and Nilgiris

are well known for their distinctive quality the world

over. Tea exports contribute foreign exchange into

the country; the sector also contributes revenue to

the tea growing states and national exchequer by

way of VAT, agricultural and corporate income tax,

etc. The tea industry provides direct employment

to more than a million workers, of which a sizeable

number are women. Additionally, more than six

million people derive their livelihood from ancillary

activities associated with the industry.

Tea Board

Tea Board was set up as a statutory body on 1st

April, 1954 as per Section (4) of Tea Act 1953. As an

apex body it looks after the overall development

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Annual Report 2012-13

of the tea industry. The Board is headed by a Chairman and consists of 30 members appointed by Govern ment of India representing various interests pertaining to Tea Industry.

The Board’s Head office is situated in Kolkata and there are two zonal offices-one for North Eastern Region at Jorhat in Assam and another for Southern Region at Coonoor in Tamil Nadu. Under the control of these offices there are ten field offices spread over in all the major tea growing states. It has also three overseas offices at London, Moscow and Dubai whose activities are mostly promotional in nature. Tea Board has wide functions and responsibilities which include extending financial and technical assistance to the tea growers, manufacturers and producers, workers welfare, export and domestic promotion, quality improvement, regulating and control of various facets of tea trade including that of Tea Auctions, facilitating R & D activities, collection, collation and dissemination statistical data etc.

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. During the period under review, the rate of tea cess was enhanced with effect from 1st June 2011 from 30 paise to 50 paise per kg of made tea for all teas produced in the country except Darjeeling for which it was raised to 20 paise from 12 paise.

Tea Growing regions

Assam, West Bengal, Tamil Nadu and Kerala are the major tea growing states. They account for 98% of the total production. Other 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, Orissa and Sikkim. India produces some of the world’s finest teas – Darjeeling, Assam and Nilgiris famous for their delicate flavour, strength and brightness. With diverse agro climatic conditions, India produces medley of teas suited to different tastes and preferences of consumers.

Production

During 2011-12, overall tea production increased by 129 million kg over 2010-11 because of better climatic conditions that prevailed in major tea growing areas in North India. During 2012-13(April-December) tea production was estimated at 1037.43 million kgs against 1021.15 million kgs compared to the corresponding period of last year.

Table: 8.1

Production of Tea in India during last three financial years (in million kgs)

Year North India South India All India

2009-10 734.38 256.80 991.18

2010-11 728.52 238.21 966.73

2011-12 865.59 229.87 1095.46

Exports

During 2011-12 the exports remained at same level of last year. The total volume of exports during 2011-12 was 214 million kgs as against 214 million kgs in 2010-11. However, because of higher unit price, the total value of exports during 2011-12 was significantly higher than the previous year. Total foreign exchange earned during 2011-12 was Rs. 3305 Crores with an average unit price of Rs.154 per kg as against Rs. 2996 Crores in 2010-11 with an average price of Rs.140 per kg. Despite weakening of Rupee, the earnings and unit price in US Dollar terms were also higher during 2011-12 as compared to previous year. In brief the comparative position is given at Table 8.2.

Source : Tea Board

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Table:8.2

2011-12 (Provisional) 2010-11

Qty M.Kgs

Value Rs.

Crore.

Value M.US $.

Unit Price

Rs./Kg.

Unit Price

($/Kg)

Qty M.Kgs

Value Rs.

Crore.

Value M.US $

Unit Price Rs. Kg

Unit Price ($/Kg.)

214 3305 690 154 3.22 214 2996 658 140 3.08

During 2011-12, improvement in the exports took place with respect to countries such as Kazakhstan, U.K., U.S.A., Egypt and Pakistan. The increase ranged from 3% (USA) to 16% (Egypt). Markets such as Russia, Kazakhstan, UK, USA, Iran, UAE, A.R.E. (Egypt) and Pakistan continued to be crucial, considering the market potential and the ability of India to fulfill the respective market demand.

During 2012-13 (April–December) exports was estimated at 156.38 million kgs valued at Rs. 3062.69 crore with a unit price of Rs.195.85 per kg against 169.65 million kgs valued at Rs. 2617.57 crore with a unit price of Rs.152.04 per kg during the corresponding period of last year.

Chart 8.1

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Chart 8.2

Imports

The volume of tea imported during the financial year 2011-12 was 19.21 million Kgs. valued at US$ 38.85 million with a unit price of US$ 2.02 per Kg. as against 19.26 million kgs. valued at US$ 41.02 million with a unit price of US$ 2.13 per kg in 2010-11. Out of the total volume tea imported, 11.64 million Kgs. was used for re-export after value addition.

During 2012-13 (April –December), import of tea is estimated at 17.88 million kgs. with a value of US$ 42.05 million and unit price of US$ 2.35 per kg. as against 16.94 million kgs. with a value of US$ 35.27 million and a unit price of US$ 2.08 per kg. during the corresponding period last year.

At present, basic import duty on tea falling under the head 0902 is 100% and on instant tea falling under head 210120 is 30%. However, duty free import of tea is allowed under the duty exemption scheme and/or by EOU/SEZ units.

North India South India All India

2012 2011 2012 2011 2012 2011

135.59 117.19 87.39 70.17 121.81 104.06

Prices

Prices in public auctions during 2012 increased by Rs.17.75 per kg as compared to price realized during 2011. There was a marked improvement in prices during the current financial year 2012-13(April-Dec.) and the average price gone up by Rs.22.83 per kg compared to the corresponding period of last year. The prices of orthodox teas ruled at much higher with a difference of Rs.36.02 per kg over the prices of 2011-12.

Average Prices of Tea per kg sold in Public auctions

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Average Prices of Tea for April to 31st December 2012 in Rs./Kg

Category 2012-13 2011-12

All Tea 130.02 107.19

CTC 126.29 103.04

Ortho 160.42 124.40

Tea Development

One of the important functions assigned to Tea Board under the Tea Act includes formulation and implementation of development schemes aimed at increasing tea production and productivity of plantations, modernization of tea processing, packaging and value addition facilities and encouraging co-operative efforts amongst small tea growers.

Financial assistance for the above activities is extended through Plan schemes approved for implementation. Activities supported during the

Sl. No

ActivityAchievement during XI Plan

period

1 New Planting (Ha) 3,738

2 Irrigation (Ha) 27,427

3 Transport (Nos) 543

4 SHG of small growers (Nos) 250

5 Replanting (Ha) 25,195

6 Rejuvenation (Ha) 6,817

7 Factory Modernization (No.) 1,485

8 Value Addition (No.) 142

9 Quality certification (No.) 224

10 Product Diversification (No.) 3

11 Orthodox subsidy ( Vol. M.Kg.) 465

12 Training (No. of persons) 49,689

XI Plan period include uprooting and replanting/rejuvenation of old aged tea bushes, creation of irrigation and transport 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 etc. modernisation of tea processing factories, value addition, quality certification, incentivisation of production of orthodox and green teas. Total subsidy disbursed during the XI Plan period was Rs.515 Cr.(Approx.). The physical achievements during the last five year period is at Table 8.3.

Table:8.3The physical achievements during the last five year plan period

Source : Tea Boand

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physical progress up to December 2012 are as at Table:8.4 and Table:8.5

Scheme NameApproved Outlay for 2012-13 (Rs. crore)

Receipt (Rs.crore)

Expenditure (Rs.. crore) (April to December 2012)

Tea Plantation Development scheme 10.00 8.12 8.10

Quality Upgradation & Product Diversification Scheme

45.00 30.64 29.87

Research & Development Scheme 12.00 9.00 8.95

Human Resource Development Scheme12.00 12.12 12.10

Market Promotion Scheme 26.00 19.93 19.90

Orthodox Subsidy 25.00 19.09 19.00

Scheduled Caste-Sub Plan 10.00 2.75 2.74

Small Growers Development Scheme 0.10 0.00 0.00

National Programme on Tea Regulation 0.10 0.00 0.00

Special purpose Tea fund scheme 60.00 42.51 42.49

Total 200.20 144.16 143.15

Achievements during 2012-13

The above noted activities have been continued during the year 2012-13 as well. The financial and

Table:8.4Financial Achievement during 2012-13 from April to December 2012

Table:8.5Physical Targets & Achievements for the period 01.04.2012 to 31.12.2012

Activity Target Achievement Percentage Achieved

1 New Planting (ha) 1500 551.39 36.76

2 Irrigation (ha) 4000 1307.29 32.68

3 Transport (no.) 41

4 SHG (no.) 25.00 12 48.00

5 Replanting (ha) 6000 2802.66 46.71

6 Rejuvenation (ha) 1000 807.05 80.71

7 Factory Modernisation (no) 350 192 54.86

8 Value Addition (no) 13 6 46.15

9 Quality Certification (no) 110 7 6.36

10 Orthodox subsidy (Vol in M.kg) 95 35 36.84

11 Number of beneficiary 400 350 87.50

12 Training (No. of persons) 5000 715 14.30

Source : Tea Boand

Source : Tea Boand

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Organic Tea Development Project

This project supported by the FAO-IGG, CFC and IFOAM was launched in September 2008. The initial sanctioned duration of the project was three years but was subsequently extended for a further period of two years. It aims at establishing scientific package of practices for organic tea, identification of market potential for organic tea and development of marketing strategies for organic tea in the world market. Three Model farms one each of 100 ha size have since been established in Assam, Darjeeling and In Kerala. Three R & D institutions in the respective regions are also associated with the Model farms for conducting experiments on all aspects of organic tea production. Steps have also been initiated for establishment of Capacity Building centre for conducting training as well as act as information centre. Training programmes have also been organized for the benefit of workers, supervisor and managerial staff engaged for the project areas.

During 2011-12 a base line survey to identify the domestic demand for organic tea was carried out through an accredited agency in four class I cities of India. The survey covered the level of awareness / knowledge, Demographic and psychographic profiling of both organic tea drinkers and non drinkers, purchase behavior / buying process, consumption pattern (occasions and frequency) and trend, Diagnostics (triggers and barriers, intention to buy), effect of pricing and its implications (pricing points and sensitivity) for Measurement of indicative demand in India in the coming years.

Development of Geographic Information System

This project was launched during 2007-08 in collaboration with ISRO. Digital Mapping of tea areas in Assam, West Bengal (GIS) and generation of MIS on the profile of tea gardens and tracking of physical progress made with regard to replantation / rejuvenation etc were the main deliverables of the project. The activities carried out during the year under report were as under:

Mapped 60% of tea growing areas in West •Bengal and Assam and digitized using high resolution satellite data and field verification.

Geo-referenced 250 Tea garden maps covering •digitization of garden boundary, section boundary and labelling of various attributes of tea gardens.

Generated spatial database viz. Road network, •railway, drainage and rivers, settlement location, watersheds, location of the tea processing factories, location of different tea growers’ societies in tea growing districts.

Developed Tea GIS MIS portal / software •package and. Prepared draft Tea Atlas for the districts of Dibrugarh, Jalpaiguri and Comparison of the uprooted areas as reported by the tea gardens and measured from satellite data.

Energy Conservation in small tea processing factories in South India

This project was launched in 2008. Supported by the United Nations Development Programme – Global Environment Facility, this four year project was implemented in collaboration with M/s TIDE- Bangalore. During the year under report with the tea industry showing acceptance of energy conservation measures, new technologies like dual speed motors, solar pumping, use of briquettes in hot water generators were successfully demonstrated and energy conservation established. There was also a lot of focus on data collection, documentation and dissemination of information. Some of the documentation produced in the year were:

Destination efficiency: A video tutorial •explaining about the 10 most significant energy conservation measures.

Two films on the project – one a promotional •film and the second film analyzing the project processes.

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A process documentation on the project.•

Reports on Baseline Analysis and Impact •Analysis of the project.

The achievements of the project were:

Investment of about USD 2.5 million for more •than 1100 energy efficient equipment.

Interventions currently 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 Shift to sustainable fuel: briquette consumption

increased by about 30,000 tons in the last two years of the project.

The project also demonstrated a success •multi stakeholder engagement with civil society, academic institutions and private

Union Minister for Commerce, Industry and Textiles, Shri Anand Sharma, lays Foundation Stone of the Regional Office of Tea Board at Palampur.

sector working together under the guidance of the Tea Board.

Tea Promotion

One of the main functions of the Tea Board is to carry out promotion activities aimed at improving the consumption of tea and to boost Indian tea exports. Promotional measures have been geared up to highlight the excellence of Indian tea as the finest in the world. Focused attention is being paid on selected countries, where there is greatest 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.

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One of the significant steps initiated during the year under report was the launching of the 5-5-5 project. This project is aimed at positioning “Indian Tea” as an over-arching umbrella brand to connect amongst the target trade and 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. Under this project, keeping in view the increasing competition in the world market, five strategically important markets viz. U.S.A., Russia, Kazakhstan, Iran and Egypt have been selected. Five specific activities spread over five years would be pursued over the five year period. The activities being pursued are ‘Extensive promotion of India Tea Logo (familiarization/creating awareness)’, ‘Engagement with the local trading community’, ‘Consumer-oriented promotion’, ‘Utilisation of Social Media’ and ‘Focus on export of value-added teas by putting in place infrastructure enablers’.

The above countries were selected based on the parameters of “Market Attractiveness & Potentiality” and “Ability to compete by the Indian Tea Industry”.

During 2012-13, Tea Board carried out promotional activities mainly through its overseas offices located at London, Moscow and Dubai to enhance demand for Indian tea and increase market shares in the respective markets. Other activities included 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, Egypt, Pakistan and UAE continued to be of high importance.

India continued being a member of the Tea Council of USA and benefited from the generic tea promotion conducted by the Tea Council. After a gap of few years, India re-joined the Tea Council of Canada.

The Board has organized a number of promotional activities such as participation in domestic trade fairs in the country propagating the health benefits of tea aimed at the youth and the house-wives. Some advertisements extolling the virtues of tea have also been released in important publications. As part of domestic tea promotion, action has been initiated for serving quality teas in the State Govt. Secretariats.

Efforts continued for maintaining and improving trade relations between exporters and importers by direct contact and discussions. Deputations/delegations from India were organized.

Intellectual Property Rights (IPR) activities

Tea Board continued its endeavour to protect •and preserve its various tea ‘word marks’ and ‘logos’.

On November 9, 2011, DARJEELING tea •became the first Indian product to be protected as a Protected Geographical Indication (PGI) in the EU. This is a welcome and important recognition for uniqueness and special qualities of Darjeeling tea, confirming its place among with the world’s most coveted teas.

With the PGI registration, “Darjeeling” •is protected in all EU Member Countries against:

a) Any direct or indirect commercial use of the name Darjeeling in respect of tea or products comparable to tea or in so far as it exploits the reputation of the name - Darjeeling;

b) Any misuse, imitation or evocation even if the true origin of the product is indicated or accompanied by an expression such as ‘style’, ‘type’, ‘method’, ‘as produced in’, ‘imitation’;

c) Any other false or misleading indication;

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d) Any other practice liable to mislead the consumer as to the true origin of the product.

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.

In this connection, during 2012-13(April to

December 2012) the following actions were taken:

10 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.

8 Oppositions were filed by the Tea •Board against use of DARJEELING/

ASSAM/NILGIRI word/logo marks by third

parties.

Total pending oppositions in India and •number of cases disposed of till December

2012. 424 oppositions are pending in

India. In recognition of the Tea Board’s

rights, 11 parties settled the matters and 5

oppositions were decided in favour of the

Tea Board.

Total pending oppositions outside India and •number of cases disposed of till December

2012, 15 oppositions are pending outside

India. Total 8 matters disposed of during

the said period in which we have received

final orders in 2 matters and interim orders

in 6 matters. Appeals have been filed

against 6 interim orders in Germany, China

and EU.

Dr(Mrs) D Purandeswari, Minister of State, Commerce & Industry at the Ministerial level meeting held on 21st January 2013 at Colombo, Sri Lanka for establishing the International Tea Producer’s Forum

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A 15 member Indian Tea headed by Dr (Mrs)

D Purandeswari, Minister of State, Commerce

& Industry participated in the Ministerial level

meeting held on 21st January, 2013 at Colombo,

Sri Lanka for establishing the International

Tea Producer’s forum. Other countries which

participated in the meeting include Indonesia,

Kenya, Malawi, Rwanda, Sri Lanka, Iran and

China. The draft constitution of the International

Tea Producer’s forum was discussed and

the members resolved to adopt it subject to

ratification of their respective governments.

Dr(Mrs) D Purandeswari stated that lives of

millions of tea workers are at stake and through

joint efforts of all tea producing nations the Tea

industry becomes sustainable in all aspects and

living standards of the tea workers can be further

improved. She also stressed on the aspect of tea

research and that it should dwell more on the

health benefits of black tea.

It was also decided that the International

Tea Producer’s Forum will be headquartered

at Colombo, Sri Lanka at a transitional

arrangement.

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 such as 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. The particulars of licences issued

during 2011-12 under the various control orders

were as under:

Tea (Marketing) Control Order, 2003

(1) Registration of Tea Manufacturers Unit -- 26 (25 in 2010-11)

(2) Renewal of Auction Organiser -- 09 (10 in 2010-11)

(3) Renewal of Auction Brokers -- 21 (22 in 2010-11)

(4) Registration of Buyers -- 174 (182 in 2010-11)

(5) Registration of flavour tea manufacturers -- 27 (115 in 2010-11)

Tea (Distribution & Export) Control Order --

(1) Fresh/temporary exporter’s licence -- 101 (103 in 2010-11).

(2) Renewal of temporary exporter’s licence -- 60 (38 in 2010-11).

(3) Distributors’ Licence -- 8 (7 in 2010-11).

Tea Waste (Control) Order, 1959

(1) Tea Waste Licence (new) -- 93 (46 in 2010-11).

(2) Tea Waste Licence renewed -- 742 (1044 in 2010-11).

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Tea Research

As per the provisions of Tea Act, 1953 Tea Board has been extending support to promote 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 have established a good net work of advisory centers linking the research institute with different tea plantation areas in their respective zones. Both these Institutes are being granted financial support to the tune of 80% (Grant-in-aid: 49% and AED: 31%) on certain identified items to carry out tea research useful for the Industry. DTR&DC has comparatively small infrastructural facility and manpower strength which is fully financed by Tea Board. Apart from these three institutes, research projects are also being assigned to other national R&D Institutes and Universities.

During 11th plan period, seventeen research projects were awarded 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. The projects are mainly aimed at applied research however, basic and regulatory aspects of tea research are also included for long term benefit and to promote export of Indian tea in the international market. Region specific research is being undertaken by different tea institutes considering the need/requirement of the respective region.

Regulatory Issues and Technological Support

Research directorate of Tea Board has been pursuing regulatory issues of tea including fixation of MRL, addressing problems associated with pesticide residue, iron filing, nature identical flavor and fixation of standards of instant tea etc. Essential technical support is being provided to all stake holders. Technical information was gathered from different international organizations and the tea research laboratories. Tea Board officials attended various national (PFA, BIS, Shadow Committee etc) and international (Codex, ISO etc) meetings and participated in the deliberation for updating latest information/regulation which is of enormous concern to both the industry and government. Workshops on FSSR, 2011 for tea industry were also conducted.

ii) Coffee

Role & Functions of the Coffee Board

The Coffee Board is a statutory organization constituted under the Coffee Act, 1942 and functions under the Administrative control of the Ministry of Commerce and Industry, Government of India. The Board comprises of 33 Members including the Chairman, who is the Chief Executive. The remaining 32 Members representing the various interests are appointed as per provisions under Section 4(2) of the Coffee Act read with Rule 3 of the Coffee Rules, 1955.

The Board functions as the friend, philosopher and guide to the Coffee Sector. The main functions of the Coffee Board are as follows:

Promotion of agricultural & technological •research in the interest of coffee industry & transfer of technology to the growers on improving production, productivity & quality.

Tea Warehouses (Licensing) Order, 1989

(1) Fresh Tea Warehouse License -- 30 (25 in 2010-11).

(2) Warehouse License renewed -- 157 (121 in 2010-11).

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Providing assistance to coffee estates for their •development.

Securing better working conditions & •providing amenities and incentives for farm workers.

Promotion of the sale & consumption in India •and elsewhere of the coffee produced in India.

Management of all other operations as per •the provisions of the Coffee Act.

Gathering statistical & other relevant data •concerning the industry and dissemination of information to various segments of the industry.

Act as the recognized spokesperson on behalf •of the coffee industry to the Government, media, trade and general public.

Providing guidance for the overall growth and •development of the coffee industry in the country.

The Board has a Central Coffee Research Institute at Balehonnur (Karnataka) and Regional Coffee Research Stations at Chettalli (Karnataka), Chundale (Kerala), Thandigudi (Tamilnadu), R.V. Nagar (Andhra Pradesh), Diphu (Assam) and Bio-

technology Centre at Mysore apart from the Extension Offices located in Coffee growing regions of Karnataka, Kerala, Tamil Nadu, Andhra Pradesh, Odisha and North Eastern Region.

Area under Coffee

Coffee is cultivated in an area of around 4.10 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.

There are about 2.80 lakh coffee holdings in the country, out of which around 2.78 lakh holdings (99%) constitutes the small growers’ category (upto 10 hectares) and the balance 1% of the total holdings fall under large grower category having above 10 hectares.

Coffee Production

The post blossom crop estimates for 2012-13 has been placed at 3,15,500 MT consisting of 1,00,225 MT of Arabica and 2,15,275 MT of Robusta as compared to the 2011-12 final crop estimates of

Chart 8.3Production of Coffee in India (MT)

Source: Coffee Board

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3,14,000 MT comprising of 1,01,500 MT of Arabica and 2,12,500 MT of Robusta.

Productivity:

Based on the estimated crop production for the year 2012-13, the overall productivity of coffee is 850 kg/ha. The productivity for Arabica is 590 kg./ha. and for Robusta, it is 1080 kg/ha. As far as the traditional area is concerned, the overall productivity for 2012-13 is 974 kg/ha. with the productivity for Arabica being 751 kg/ha. and that for Robusta being 1181 kg/ha. Coffee is primarily an Export Oriented Commodity and presently 70% of Coffee is being exported while balance is being consumed domestically.

Export of Coffee

The total quantity of coffee exported from India during 2011-12 including re-exported coffee after value addition was 3,24,032 Metric Tonnes. The top five export destinations for Indian Coffee are Italy, Germany, Russian Federation, Belgium and Spain, which accounted for about 52% of our total coffee exports. The coffee exports during 2011-12 has been the highest as compared to the previous record of exports of 2,99,725 MT during the year 2010-11. The value realization out of coffee exports during 2011-12 was Rs. 4544.03 crore.

The provisional coffee exports for 2012-13 covering the period April – December 2012 are 2,10,858 Metric Tonnes valued at Rs.3,270.09 crore, as

against the export target of 2,97,000 MTs for 2012-13. As per the trend, it is expected to reach the export target by the end of the year.

Domestic Consumption

The coffee consumption survey 2009 carried out

to track consumption trends and attitudes analysis

has estimated the domestic consumption at

1,02,000 MT for 2009-2010. It was estimated to be

1,08,000 MT for the year 2010-2011 and 2011-12

was estimated at 1,15,000 MT (P). The process of

assessment of domestic consumption for 2012-13

is underway.

Several steps/programmes have been initiated

by the Board for supporting the domestic market

development of coffee. As the recent surveys

(2008, 2009) had indicated that non-conventional

coffee drinking areas, viz. north, west and east

of India increased in number of occasional

consumers, which are the potential segments

to increase consumption. The entrepreneurial

Development trainings are given to augment

development of enterprise in roast and ground

coffee which feeds the rising demand by setting

up new roasting units/ increasing the capacity of

the existing units. Market surveys are conducted to

develop insights into potentialities. On the vertical

for improving coffee awareness, Coffee Board

participates in the high impact tools like domestic

Chart 8.4

Source: Coffee Board

195


events, create awareness on coffee through media campaigns focused on strengthening the drivers of consumption while simultaneously contending the barriers of consumption, promoting awareness on the support schemes. The Coffee Board participated in important exhibitions held in India (35 numbers) till December 2012 covering a larger footprint in the non-conventional coffee drinking areas.

India International Coffee Festival 2012

The 4th edition of the India International Coffee Festival held from 18th to 20th January, 2012 in New Delhi was a grand success. The festival with the theme “Growing with Coffee” had more than 400 enthusiasts participating from 16 countries including Australia, UK, Netherlands, Italy, Germany, Nigeria, Kenya, Norway, Sweden, Belgium and USA. The festival was inaugurated by Shri Anand Sharma, Hon’ble Union Minister of Commerce, Industry and Textiles. Mr. Roberio

The Union Minister for Commerce, Industry and Textile, Shri Anand Sharma at the India International Coffee Festival

Oliveira Silva, Executive Director of the ICO was the guest of honour. The Plenary conference was addressed by Dr. Montek Singh Ahluwalia, Deputy Chairman of the Planning Commission. Dr. Anup Pujari, DGFT addressed the valedictory session.

The festival showcased skill building workshops for the prospective entrepreneurs as well as a fabulous exhibition. Creating an avenue for entrepreneurial talent in the exciting world of coffee, the Indian Coffee Trust instituted an exciting Café Competition for Café Awards to encourage new talent in the domestic coffee scenario. The then Hon’ble Minister of State for Commerce and Industry, Sri Jyotiraditya M. Scindia was the Chief Guest for the awards function to honour the winners in the categories of Roasters, Curing establishments, Cafés and Baristas and a total of 13 cafés were awarded at the IICF, 2012, New Delhi.

196


Export Promotion

Flavour of India - Fine Cup Awards 2012

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.

For this 11th Flavour of India Competition, out

of 219 coffee samples (118 Arabica samples

and 101 Robusta Samples) were received, 39

qualified for finals and were put up for cup

quality evaluation by the International Jury.

The number of samples assessed in different

categories during the final cupping session was

Arabica-16, Specialty Arabica-6, Robusta – 11

and Specialty Robusta–6.

In this Eleventh year of the Flavour of India

Competition , the final round of cupping was

held on May 2012 at Coffee Academy , William

Angels Institute of Tafe, Melbourne Victoria

3000, Australia. The logistic & technical support

was provided by H.A. Bennet & Sons. It was

heartening to see the high scores all coffee

received underlying the quality assurance of

these best coffees samples from India. This being

the culmination of a decade long award, the

Flavour of India 2012 winners and International

Jury were felicitated by Shri Madhusudan Prasad,

Additional Secretary Plantations at the Flavour of

India Show at Melbourne, International Coffee

Expo 2012.

The high quality Coffees of India earn premium.

However to increase the value earnings from

exports, considering the supply constraint due to

limited production base, it is important to increase

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 like USA,

Canada, Japan, Australia and New Zealand. 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, sustainable and scintillating

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, Korea, Canada, Italy, Germany,

Australia, Russia, Ukraine.

XI Plan Schemes of the Coffee Board

Coffee Board implemented the following schemes

during XI Five Year Plan (2007-08 to 2011-12)

for development and export of coffee and its

performance. Please see Table 8.6.

197


Sl. No. Name of the Scheme/Component-wise (Units) Target Achievements

I. R & D FOR SUSTAINABLE COFFEE PRODUCTION

a) Crop Production (MT) 155500 1429900 (P)

b) Production of Seed in MTs 25.0 28.0

II DEVELOPMENT SUPPORT

a) Re-plantation (in ha.) 17500 21593

b) Water augmentation, Quality up-gradation & Pollution Abatement (in Units)

17350 22188

c) Coffee Development in N.E. Region (in ha)

i) Expansion/Consolidation (in ha.) 1850 1943

ii) Pulpers/Drying yard/trays (Nos.) 1500 1598

d) Coffee Development in Non-Traditional Area & other tribal sector

i) Expansion/phasing out of Cauvery(in Ha.) 22200 22173

ii) Pulpers / Drying yards (Nos.) 5000 7125

e) Capacity building for all stake holders - No. of beneficiaries 11885 16891

f) Welfare support to labourers and tiny coffee growers - No. of beneficiaries

15000 28294

g) Interest subsidy to growers on working capital loans (No. of beneficiaries)

30000 28695

III MARKET DEVELOPMENT

Domestic consumption(in MT) 501000 502400 (P)

IV RISK MANAGEMENT TO GROWERS

a) No. of small growers proposed to cover with <10 ha. 110460 56671

Table:8.6Physical Performance of Plan Schemes During XI Plan

198


b) Total area proposed to cover in ha. 198600 93248

V EXPORT PROMOTION

a) Export of Coffee (in MT) 1075000 1235393

b) Export of value added coffee as Indian brands(in MT) 35000 35387

c) Export high value coffees to far off markets(in MT) 25000 24485

VI SUPPORT FOR PROCESSING

Setting up of Coffee processing units (Nos.) 150 88

VII Support for Mechanisation of Coffee Estate Operations

No. of Machineries 21500 19944

Table:8.7Outlay and expenditure during 11th Plan (Rs. in crore)

Sl. No. Name of the Scheme Total Outlay

Releases during XI plan

Achievement

I. RESEARCH & DEVELOPMENT FOR SUSTAINABLE COFFEE PRODUCTION

90.00 88.20 84.00

II DEVELOPMENT SUPPORT 310.00 197.00 198.07

III MARKET DEVELOPMENT 30.00 20.00 18.78

IV RISK MANAGEMENT TO GROWERS 80.00 12.00 4.77

V EXPORT PROMOTION 45.00 25.00 22.89

VI SUPPORT FOR PROCESSING 45.00 14.00 3.65

VII Support for Mechanization of Coffee Estate Operations

20.56 18.32

SC Sub-plan 0.20

VIII 6th CPC Pension 19.66

Total 600.00 376.76 370.34

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Table:8.8Physical and financial Targets for 2012-13 and achievement

up to October 2012 under Plan schemes

Sl. No.

Name of the Scheme/Component-wise

Targets 2012-13Achievements

for 2012-13 (Apr- Dec.2012) Remarks

Fin Phy Fin Phy

I. RESEARCH & DEVELOPMENT FOR SUSTAINABLE COFFEE PRODUCTION

22 19.71

a) Crop Production (MT) 310000 315500 Post-monsoon estimates

b) Production of Seed in MTs

5 1.421

To be achieved during IV Quarter during harvesting period.

c) No. of Estate visits 20000 15215 Balance to be achieved in the IV qrt.

II DEVELOPMENT SUPPORT 53.50 32.01

a) Re-plantation (in ha.) 1000 882.73 Balance to be achieved during IV qtr. during planting season

b) Water augmentation, Quality up-gradation & Pollution Abatement (in Units)

3000 3754

c) Coffee Development in N.E. Region

i) Expansion/Consolidation (in ha.)

300 335

ii) Pulpers/Drying yard/trays (Nos.)

100 40 To be achieved in the IV qrtr.

d) Coffee Development in Non-Traditional Area & other tribal sector

i) Expansion/phasing out of Cauvery (in Ha.)

3700 3393 To be achieved during IV Quarter during planting season

ii) Pulpers / Drying yards (Nos.)

500 To be achieved in the ensuing qrtrs.

e) Capacity building for all stake holders - No. of beneficiaries

3000 5012 Balance to be achieved in the IV qrtr.

200


f) Welfare support to labourers and tiny coffee growers - No. of beneficiaries

5000 1878 To be achieved in the IV quarter

g) Interest subsidy to growers on working capital loans (No. of beneficiaries)


III MARKET DEVELOPMENT 7.00 3.12

Domestic consumption(in MT)

120000

IV RISK MANAGEMENT TO GROWERS

1.00 0.00

a) No. of small growers proposed to cover with <10 ha.

5000 - To be achieved in the ensuing qtrs.

b) Total area proposed to cover in ha.

9000 - To be achieved in the ensuing qtrs. Approval for continuation of the scheme received after marketing period was over. AIC has not initiated marketing for 2012-13.

V EXPORT PROMOTION 9.00 6.24

a) Export of Coffee (in MT) 297800 210858

b) Export of value added coffee as Indian brands(in MT)

8000 10227

c) Export high value coffees to far off markets(in MT)

8000 2605

d) Participation in Overseas trade fairs (nos.)

15 14 Balance to be achieved in the IV quarter

e) Buyer-Seller meet (Nos.) 6 5

VI SUPPORT FOR PROCESSING 2.50 0.34

Setting up of Coffee processing units(Nos.)


VII Support for Mechanisation of Coffee Estate Operations

15.00 8.09

No. of Machineries 8000 3502 Balance to be achieved in the IV quarter

Grand Total : 110.00 69.51

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The Government of India communicated the sanction for the implementation of the Coffee Debt Relief Package – 2010 for the debt ridden small coffee growers with a total implication of Rs. 241 Crore vide order No 4/3/2008-Plant (B) dated 14th June, 2010.

Under this, claims from 53 banks were cleared with an amount of Rs. 241 Crore released by the Govt. of India. As against the targeted 74,929 small growers, 1,20,025 small growers were benefited by the scheme with the Govt. share of relief of Rs.241.00 Crore.

The Government of India released additional funds of Rs.58.00 crore on 7th March 2012 of which an amount of Rs. 47.82 crore disbursed by 31st March 2012. As on 31st December, 2012 an amount of Rs.52.39 crore was paid towards pending claims involving 15255 growers.

iii) Natural Rubber

India has been continuously holding the first position in Natural Rubber (NR) productivity since 2006. Productivity during the year 2011-12 was 1841 kg/ha. This achievement is remarkable in view of less favourable weather conditions prevailing in most of the rubber growing regions of the country. The hallmark of Indian natural rubber sector is the predominance of small and marginal growers. Currently 90% of the area and 93% of the production of rubber are contributed by the smallholding sector comprising 1.22 million units. The average size of the rubber holding in the country is around 0.54 hectare.

Area, production and productivity of Natural Rubber (NR)

Rubber is successfully grown in the states of Kerala, Tamil Nadu, Karnataka, Tripura, Assam, Meghalaya etc. However, Kerala alone accounts for 73.4% of area occupied by the crop in the country. The area under rubber in the north-eastern region increased substantially in the recent years, with a share of 17.5% during the year 2011-12.

Area under rubber cultivation in India is 734,780 ha in 2011-12 registering a growth of 3.3%. Continuation of subsidy schemes for new planting as well as replanting, efficiency at grass root level extension work, release of the new high yielding RRII 400 series clones and favourable market for NR have contributed to area expansion.

India continued to be the 4th largest producer of NR in the world during 2011 with a share of 8.1% of the global output. Production of NR in the country was 903,700 tonnes in 2011-12 with a growth of 4.8%.

The estimated production of NR during April – December 2012 is 693,200 tonnes (provisional). The projected production for the year 2012-13 is 930,000 tonnes.

Consumption of NR

India was the 3rd largest consumer of NR in 2011 after China and USA. Unlike NR production, which is characterized by a high degree of regional concentration, consumption of NR takes place in a rather disbursed manner throughout the country. The total consumption of NR in 2011-12 was 964,415 tonnes with a growth of 1.8%.

Auto tyre sector registered a growth of 5.7% and general rubber goods sector recorded a negative growth of 4.9% during 2011-12. Tyre & tube sector of the industry, including retreads and cycle tyres together, accounted for about 76% of consumption of NR during 2010-11. Auto tyres & tubes alone shared as much as 62% of total consumption.

The estimated consumption of NR during April – December 2012 is 742,815 tonnes (provisional). The projected consumption of NR for the year 2012-13 is 1006,000 tonnes.

Import

General rate of import duty for all forms of NR falling under Harmonized System (HS) Code HS 400121, HS 400122, and HS 400129 remained unchanged at 20% or Rupees 20 per kilogram,

Coffee Debt Relief Package – 2010

202


whichever is lower, during the year 2011-12. For NR latex (HS 400110), the earlier ad valorem rate of 70% has been modified with effect from 17th January 2012 to “70% or Rupees 49, whichever is lower”.

India imported a total quantity of 213,785 tonnes of NR during the year 2011-12 by rising 12% from the previous year. Nearly 59% of the volume imported during the year was free of duty by availing of the Duty Exemption Entitlement Certificate (DEEC) popularly known as the Advance Licence entitled against export of value-added products.

The increase in the volume imported during 2011-12 was partly facilitated by a concessional 7.5% import duty allowed under a tariff rate quota for a maximum quantity of 40,000 tonnes of NR falling under HS 400121, HS 400122, and HS 400129. Period of validity of the tariff rate quota, which was introduced on 22nd December 2010, was due to expire by 31st March 2011. This was subsequently extended to 31st March 2012 under Notification No. 59/2011-Customs dated 13th July 2011.

The volume of NR imported during April – December 2012 was 173,422 tonnes (provisional).

Export

Volume of India’s export of NR fell to 27,145 tonnes during 2011-12 from the previous year’s 29,851 tonnes. Although the price differential between the domestic and overseas markets stayed favourable to export during most of the year under review, high volatility in the prices has been a major stumbling block. In terms of value, NR exports from India fell 22.9% to US$ 94.07 million from US$ 121.94 million earned in last year. The volume of NR exported during April – December 2012 was 10,782 tonnes (provisional).

Marketing System

Marketing System for Natural Rubber (NR) in the country is perfectly designed with 9355 dealers positioned across the country covering all the rubber-growing belts. NR marketing system is

well supported by 124 value addition units and 171 exporters. To boost sales in the export and domestic markets, the Rubber Board participated in 4 overseas trade fairs and 3 domestic trade fairs and provided opportunity to exporters for participating and displaying their products.

Indian Natural Rubber Logo launched by the Board endorses the quality attributes of NR exported from the country and around 3719.65 MT of branded Indian Natural rubber products has been exported from India during April –December 2012. An efficient price collection and dissemination mechanism is in place to create awareness on daily price movements in the national and international markets to the stakeholders. Price dissemination system equips the growers to fetch more than 95% of the realization in the terminal markets, the highest in any agricultural commodity.

Collection of Cess

Under Sections 12(1) and 12(2) of the Rubber Act, the Board is entrusted with the assessment and collection of a duty of excise as cess 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 2011-12, the collection of cess amounted to Rs.100.70 crore against a target of Rs.100.00 crore. Collection of cess up to 31st December 2012 is Rs. 121.77 crore (provisional) as against the target set for the year 2012-13 at Rs.135 crore.

The Board has also collected and deposited to the CFI, the interest on belated payment of cess, @ 1.5% per month, amounted to Rs.31.41 lakh during the year 2010–11 and Rs.21.6 lakh (provisional) during 1st April – 31st December 2012. Besides, collection of compounding charges was Rs.78.47 lakh during the year 2011–12 and Rs. 52.43 lakh (provisional) during 1st April – 31st December 2012.

Planning

Annual outlay under Plan in 2012-13 was Rs.171.54 crore and Non-Plan budget amounted to Rs. 50

203


crore. Monthly Plan Review Meetings were held to monitor the progress in the implementation of Plan Schemes. Plan and Non-Plan expenditure during April – December 2012 was Rs.121.73 crore and Rs.34.69 crore respectively.

International Cooperation

A two-member delegation from the Board attended Annual Meetings of International Rubber Study Group (IRSG) held in Singapore from 22 to 25 May 2012. 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 Chairman represented India in the Annual Meetings of the Association of Natural Rubber Producing Countries (ANRPC) held in Medan, Indonesia from 15 to 20 October, 2012.

iv) 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 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.

Chart 8.5India Spice Exports through 2005-06 to 2011-12 (in US$ Million)

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Export

Despite the global economic recession, export of spices from India has shown a steady upward trend during the last few years and this trend continued in 2012-13 also. The export has gone up from 350,363 tons valued at Rs.2627.62 crore (US$ 592.90 million) in 2005-06 to 575,270 tons valued Rs.9783.42 crore (US$ 2037.76 million) in 2011-12 registering a compound annual growth rate of 22.85% in dollar terms of value and 8.62% in volume.

During 2012-13 (April-November) the estimated export of spices is 473,790 tons valued at. Rs.7219.54 crore as against 359,148 tons valued at Rs.6204.09 crore in the corresponding period of last year.

Import

The import of spices largely takes place for value addition and re-exports except items such as clove, cassia, star anise, poppy seed, fresh ginger etc. which are mainly used for domestic demand. The import of spices during 2011-12 was 111,136 tons valued Rs.2094.48 crore (US$ 445.18 million). During 2012-13 (April-August), the estimated import of spices is 46,531 tons valued at Rs.844.27 crore.

Production

The estimated production of cardamom (small) and cardamom (large) in India during 2011-12 is 150000 tons and 3,860 tons respectively.

Cardamom (small)

The prolonged dry spell during summer months and a decrease of 30-40% of rain fall in the major cardamom growing tracts of Kerala and Karnataka has affected the cardamom plantations in the current crop season, because of which a decrease of 20-30% in production is expected when compared to previous year.

Cardamom (large)

Due to favourable climatic conditions and fairly normal rainfall, a 5% increase in crop is

expected during current year when compared to last year.

Plan Schemes of the Board

Government had approved six schemes for implementation during the Eleventh Five Year Plan. The details of the schemes are given below:

Export oriented production and post harvest •improvement of spices

Export development & promotion of spices•

Export oriented research•

Quality improvement and strengthening of •quality evaluation laboratory

Human resource development & capital •works

Special purpose fund for replanting and •rejuvenation of cardamom plantations

In addition to the above, during October 2009, Government has approved a special scheme for replantation and rejuvenation of pepper in the Wynad district of Kerala and in the NE States, Assam, Tripura, Meghalaya and Manipur in order to address the issue of low productivity of pepper. Under this scheme, only two years have been completed by the end of XI Plan and the remaining three years of implementation will be continued during XII Plan period. Hence, the programmes under this scheme are also now proposed as a component under the scheme of Export Oriented Production.

The life cycle of cardamom is eight years and hence it will not be possible to cover larger area during XII Plan under cardamom replanting because areas already covered during XI Plan will not be completing the eight year life cycle. That being the case, the scheme of Replanting of cardamom plantations is now proposed as one of the programmes under the scheme of Export Oriented Production during XII Plan period.

The financial progress of the above schemes during XI Plan period is at Table 8.9

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Table 8.9Financial Outlay and Expenditure during XI Plan

(Rs. in crore)

Sl.

No.Name of the Scheme

XI Plan

Approved Outlay

Actual Plan Budget Allocation/ release

Provisional Achievement

1. Export oriented production (EOP) 82.94 99.68 99.57

Special purpose fund for Replantation and rejuvenation of cardamom plantations

122.23 59.50 55.61

Pepper Development in Wayanad and NE States (Approved in Oct 2009 for implementation during next 5 years with an outlay of Rs.53.28 crore)

23.90 10.00 12.02

2. Export development and promotion 192.69 132.32 133.77

3. Export oriented research 20.00 25.00 27.93

4. Quality improvement 20.00 20.00 20.18

5. HRD & Works 5.00 5.00 4.28

6.Setting up of Plantation Research Unit in CDS, Trivandrum

5.00 5.00 5.00

TOTAL 471.76 356.50 358.36

Table 8.10Outlay and Expenditure during current year 2012-13

(Rs.Crores)

Sl. No

Schemes Outlay 2012-13Expenditure (Apr-

Dec.2012)

1 Export oriented production and post harvest improvement 43.50 24.47

2 Replantation and rejuvenation of cardamom plantationsMerged with

Sl.No.1Merged with

Sl.No.1

3 Export development and promotion 45.00 35.11

4 Export oriented research 6.00 5.52

5 Quality improvement 4.50 4.27

6 HRD & works 1.00 0.86

Replantation/ rejuvenation of pepper plantations in Wayanad Dist. and NER states (Scheme approved in October 2009 for implementation during the next five years with an outlay of Rs.53.28 crores) (*)

Merged with Sl.No.1

Merged with Sl.No.1

Grand Total 100.00 70.23

Note: (*) Scheme is to be implemented during the XI and XII plan.

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Programmes supported under Plan schemes

a) Special purpose fund for replanting and rejuvenation cardamom (small and large) plantations.

The objective of the scheme is to address the issue of replanting rejuvenation of the old and uneconomic plantations of cardamom (small) in the States of Kerala, Karnataka, Tamil Nadu and cardamom (large) in Sikkim and Darjeeling district of West Bengal. The approved total outlay under the programmes for replanting and rejuvenation of plantations of cardamom (small) and cardamom (large) is Rs. 122.23crores. The total area proposed to be covered under replanting and rejuvenation of cardamom plantations during XI plan is as follows:

Small cardamom – Replantation of 10,000 •hectares in Kerala & Tamil Nadu and 15000 hectares in Karnataka. Rejuvenation of 15000 hectares in Kerala and Tamil Nadu.

Against the above target 10773 hectare •has been replanted in Kerala, Tamil Nadu and Karnataka and 7611 hectare has been rejuvenated in Kerala & Tamil Nadu during the XI Plan period.

Large cardamom – Replantation and •rejuvenation of 10,000 hectare each in Sikkim and Darjeeling district of West Bengal.

Against the target 4000 hectare has •been replanted & 1868 hectare has been rejuvenated during the plan period.

During XII Plan period it has been proposed to merge this programme with the scheme of Export Oriented Production and post harvest improvement of spices. During 2012-13, it has been targeted to cover replantation of 2022 ha under cardamom (small) and 1359 ha under cardamom (large).

b) Export oriented production and post harvest improvement of spices

The focus of the scheme is to provide support for irrigation and land development in cardamom

plantations, better cardamom curing devices, promoting organic farming, development of spices in North Eastern States and post harvest improvement of spices. Transfer of technical know-how to growers on production of spices is an important factor in increasing productivity and this is done through a well-knit extension net work.

c) Export development & promotion of spices

The market development activities of the Board have its focus on quality improvement, value addition and technology and process upgradation. The major thrust areas are infrastructure improvement, quality control labs, trade promotion, research and new product development, setting up of Infrastructure for common cleaning, grading, processing, packing, storing facilities (Spices Park) in major spice growing/marketing centers, participation in international fairs etc. Board participated in 22 international fairs across the Globe and 21 domestic fairs during 2011-12 and during 2012-13, it has been targetted to cover 20 international fairs.

d) Export oriented research

A high yielding cardamom selection, SKP- 170 was recommended for cultivation in Karnataka. Analyzed 4000 soil samples belonging to 20 panchayats with respect to nutrient status for preparing the soil map of the of Idukki district, Kerala. The prototype for mechanical harvesting of cardamom developed in collaboration with Central Institute of Agricultural Engineering Bhopal (CIAE) is being evaluated in the plantations. Organized 6 spice clinics and imparted 16 training programmes on Spices production technology to farmers / extension officers of the state department. Mass multiplied and distributed 3188 kg of Trichoderma solid culture, 1247 litres of Trichoderma liquid culture, 1641.5 liters of Pseudomonas liquid culture, 4588 kg of Pseudomonas solid culture, 367 kg of Beauveria bassiana solid culture,30 kg of Lecanicillium lecanii solid culture and 202 kg of

207


AM Fungal cultures to the needy farmers. A total of 29,626 EPN infected Gallaria cadavers were produced and supplied to the farmers for covering an area of 24 acres for the management of root grubs in cardamom.

e) Quality improvement and strengthening of quality evaluation laboratory

The Quality Evaluation Laboratory of the Board provides analytical services to the Indian Spice Industry and monitors the quality of Spices produced and processed in the country. It also undertakes analysis of consignment samples under the mandatory inspection of Spices Board.

During 2011-12, the laboratory analysed 71457 Samples for various parameters including pesticide residues, Aflatoxin, illegal dyes in chilli and chilli products etc. Under “Earn while you learn” programme during 2011-12, 34 students were selected from various nearby colleges at Kochi through campus interview and the laboratory trained them on the analysis of Spices and spice products for various parameters to function as the contract analysts at QEL Kochi. The laboratory conducted 4 training programmes on the analysis of “Spices and spice products” for physical, chemical, residual and microbiological parameters during 2011-12. 18 technical personnel from various spice industries/other Institutions attended the programme during the period. During 2012-13 (April- December) a total of 62,247 samples has been analysed for various parameters.

f) 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.

g) Replantation and rejuvenation of pepper in Wynad district in Kerala and NE for implementation from 2010-11

This scheme is approved by the Ministry of Commerce & Industry in October 2009 for implementation during the next five years in Wynad District of Kerala and North Eastern States. It is proposed to take up replantation/new plantation/rejuvenation of pepper in 22,500 ha (20,000 ha in Waynad, Kerala, 1,000 ha in Assam, 500 ha in Meghalaya, 500 ha in Tripura and 500 ha in Manipur) with a total financial outlay of Rs.100.81 crore out of which Rs.53.28 crore will be the assistance from the Government of India. During 2011-12, against a budget allocation of Rs.5.00 crore, Spices Board has made expenditure of Rs.7.29 crore.

During XII Plan period it has been proposed to merge this programme with the scheme of Export Oriented Production and post harvest improvement of spices. During 2012-13, it has been targeted to cover 3650 ha under replantation of pepper.

h) Project assisted under National Horticul-ture Mission for development of pepper in Idukki district of Kerala

Considering the necessity of reviving the pepper industry in the country, Spices Board had submitted a proposal to the National Horticulture Mission (NHM) during February 2009 for development of pepper in the country with focus on replantation and rejuvenation of old, senile and disease affected plantations. The proposal has been approved by the Ministry of Agriculture & Cooperation, Government of India in April 2009 for implementation during XI Plan at a total project cost of Rs.230.58 crore with financial assistance from NHM at Rs.120.00 crore. The project is being implemented in Idukki district of Kerala for a period of five years starting from 2009-10. Spices Board has utilized Rs.27.02 crore in Idukki districts from 2009-10 to 2011-12 for Pepper development. The programme is well accepted by the farmers. 13841 hectare has been replanted/rejuvenated during 2009-10 to 2011-12

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under the programme. During 2012-13 it has been targetted to cover an area of 3750 ha.

Major initiatives

Spices Park

The 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.

The Spices Board is in the process of establishing Spices Parks in different spice producing states. The first ever Spices Park was established in Chhindwara, Madhya Pradesh under ASIDE scheme and started functioning in 2009. The Spices Park at Puttadi, Idukki district of Kerala has also been completed and started functioning in 2010. The Spices Park at Jodhpur, Rajasthan has been completed and inaugurated in April 2012. The work is in progress for establishing Spices Park at Guntur in Andhra Pradesh, Sivaganga in Tamil Nadu, Kota in Rajasthan and Guna in Madhya Pradesh. Board has initiated steps for establishing Spices Park at Hamirpur in Himachal Pradesh. The Spices Park at Guna, Kota and Hamirpur are being set up under the ASIDE scheme.

Spices Park at Puttady, Kerala

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Spices Park at Jodhpur

Regional Quality Evaluation Laboratories

The Central Quality Evaluation Laboratory of the Board at Cochin has been upgraded and moved to a new building with world-class facilities. The Regional Quality Evaluation Laboratories at Mumbai, Guntur and Chennai are functioning successfully. Setting up of Regional Quality Evaluation Laboratory and training centers at New Delhi and Tuticorin are completed. The Quality Evaluation Laboratory at Kolkata and Kandla are progressing. The regional quality evaluation laboratories of the Board are established under the ASIDE scheme.

Electronic Auction for Cardamom

The E-auction of cardamom in Kerala is now conducted in the Spices Park at Puttady of Idukki district. The E-auction is also conducted in Bodinayakanur of Tamil Nadu.

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 11th World Spice Congress was held from 9th to 11th February 2012 at Pune with record participation of over 200 International delegates from 40 countries and over 300 Indian delegates. The theme of the Congress was: “Sustainability & Food Safety – Global Initiatives”. The exhibition of spices had 26 participants displaying a wide range of spices and spices products. The Congress paved the way for a series of interactions with international quality regulators from countries like

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the US, the European Union, Canada and Japan. It culminated in taking multifarious decisions which were also subscribed by delegates from other spice producing countries. It was attended by representatives of spices farmers from different parts of the country, besides traders, exporters and officials of Agriculture departments of States and Spices Board. The Board had started taking up quality building exercise jointly with USFDA enabling every segment of the spice industry to face the challenges of international trade and commerce in spices.

Price Stabilisation Fund Scheme

Price Stabilisation Fund Scheme was launched by Government of India in April 2003 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

and 15,730 tea growers. No tobacco grower has joined the Scheme.

PSF Corpus Fund and Interest Accrued thereon as on 31.03.2012

PSF Scheme originally envisaged a Corpus Fund of Rs.500 crore, 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 31st March 2012, deposits in the PSF Corpus Fund were Rs.435.47 crore, out of which Rs. 432.88 crore had been contributed by GOI and Rs.2.59 crore by Growers by way of entry fee. A sum of Rs.352.87 crore as the balance of accrued interest on the Corpus is available to the PSF Trust as on 31.3.2012.

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, and 2011 and the likely financial assistance stood at Rs. 6.22 crore.

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 a specified level.

Enrolment of Growers

Out of the total target of 12.77 lakh growers (growers having landholding up to 4 ha.), it was decided to cover 3.42 lakh small growers in the initial phase. As on 31 December 2012, the total enrolment under the Scheme is 46,243 out of which 18,919 are rubber growers, 11,594 coffee growers

Commodity PSB 2003

PSB 2004

PSB 2005

PSB 2006

PSB 2007

PSB 2008*

PSB 2009

PSB 2010*

PSB2011

Total

Rubber 0 0 0 0 0 0 0.95 0 0 0.95Coffee 0.82 0.58 0 0 0 0 0 0 0 1.40Tea 0.09 0.73 0.74 0.75 0.77 0 0 0 0.79 3.87

Table 8.11Year wise Price Spectrum Band and Cumulative committed Financial Assistance

(Rs. in crore)

However, due to default by growers in depositing their contribution during normal years, assistance of Rs.150.80 Lakh only has been released to tea, coffee and Rubber growers as at the end of December 2012.

Personal Accident Insurance Scheme(PAIS)

A Personal Accident Insurance Scheme having a cover of Rs.25,000 was started for the growers of Tea, Coffee, Rubber and Tobacco from 1.1.2005. The Personal Accident Insurance Scheme was reviewed by the Government and a modified

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Personal Accident Insurance Scheme is under implementation by PSFT through Cholamandalam MS General Insurance Co Ltd. (for the period 2011-12 and 2012-13). Salient features of the scheme are as under:

The scheme covers 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 only.

The Scheme covers all plantation workers •working on these plantations regardless of the size of holdings.

The insurance cover is up to Rs. 1.00 lakh per •person.

The premium of Rs.22.06 is shared between the •beneficiary and the PSF Trust in the ratio 50:50.

The target is Rs.57.17 lakh growers and •workers.

A total of 60300 growers and workers were covered under Personal Accident Insurance Scheme (PAIS) by Cholamandalam MS General Insurance Co Ltd. during 2011-12.

As on 31st January 2013, a total amount of Rs.10,10,558 has been released towards Price Stabilisation Fund Trust’s (PSFT) matching contribution to provide insurance cover to 91619 persons to Chola MS General Insurance Co Ltd. Sector wise progress in respect of coverage for 2012-13 (upto 31st January 2013) is given in Table : 8.12

Sector Growers Workers TotalTea 2971 33441 36412

Coffee 3612 1922 5534Rubber 0 3954 3954Tobacco 26373 19346 45719Spices 0 0 0Total 32956 58663 91619

Table:8.12 Sector-wise progress under Personal Accident Insurance Scheme during 2012-13 (as on 31.01.2013)

An amount of Rs.39,99,387,50 has been released towards premium under PAI Scheme, since inception up to 31.01.2013

Settlement of claim for policies issued during 2011-12 and 2012-13 by Chola MS GIC:

Received : 53•

Settled : 20•

Rejected : 08•

Under process : 25•

Amount paid towards settlement of claims by •MS General Insurance Co. :

2011-12: Rs.452206/-

2012-13: Rs.250000/-

v) The Agricultural and Processed Food Products Export Development Authority (APEDA)

Role & functions

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 26 years and to reach out to the exporters in different parts of the Country, in addition to 5

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Commodity April-Dec.’11

April-Dec..’12

Growth in %

Rice 15,289.48 23,861.43 56.06

Wheat 677.62 6,984.56 930.75

Others 3,734.36 4,970.55 33.1

Groundnut 3,641.76 3,176.84 -12.77

Guergum Meal 7,991.77 24,275.86 203.76

Source : DGCIS

Regional offices, APEDA has setup 13 Virtual Offices in different parts of the country. APEDA is mandated with the development and promotion of the export of scheduled agro products which include Fruits, Vegetables and their Products; Meat and Meat Products; Poultry and Poultry Products; Dairy Products; Confectionery, Biscuits and Bakery products; Honey, Jaggery and Sugar Products; Cocoa and its products, Chocolates of all kinds; Alcoholic and Non-Alcoholic Beverages; Cereal products; Groundnuts, Peanuts and Walnuts; Pickles, Papads and Chutneys; Guar Gum; Floriculture and Floriculture Products; Herbal and Medicinal Plants. 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 provided financial assistance to the registered exporters under its Schemes for Market Development, Infrastructure Development, Quality Development, Research & Development and Transport Assistance during the XI Plan.

Export Performance

The export of APEDA products for the period April-December is at Table: 8.13

Table: 8.13Value in Rs. crore

Fresh Fruits & Vegetables

3,857.10 4,195.29 8.77

Fruit/Vegetable seeds 187.04 260.72 39.39

Processed & misc processed items

4,615.29 5,845.41 26.65

Meat & Preparations 9,886.11 12,594.30 27.39

Poultry & Dairy Products

668.03 1,310.78 96.22

Floriculture Products 263.94 317.03 20.11

Spirit & Beverages 1,007.67 1,397.76 38.71

Total 51,820.17 89,190.53 72.12

The provisional export data for the period April-October, 2012 shows an overall very sound positive growth of 104.57% over the same period of previous year.

APEDA Schemes

APEDA has been actively engaged in the development of markets besides up gradation 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 the following schemes:

- Scheme for Market Development

- Scheme for Infrastructure Development

- Scheme for Quality Development

- Scheme for Research & Development

- Transport Assistance Scheme

Infrastructure developmental activities

1. Himachal Pradesh

a. Setting up of CA stores for apples at Gumma and Jarol Tikker and packing at

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grading facility at Oddi, Patlikuhl, Gum-ma and Jarol Tikker

With the financial assistance of APEDA, HPMC has commissioned state of the art apples grading and packing lines at Oddi, Patlikuhl, Gumma and Jarol Tikker with a capacity of 2MT/hr. Further, two Controlled Atmosphere (CA) stores having a total capacity of 1320 MT have been commissioned by HPMC at Gumma and Jarol Tikker.

b. Installation of Tetra pack machine (TBA-19) at Parwanoo, Solan.

APEDA had sanctioned a financial assistance of Rs.355.15 lakhs to HPMC for installation of TBA-19 Tetrapak machine and TSA 30 straw applicator at Parwanoo, H.P. District Solan for packaging of fruit juices/drinks in 200 ML slim Tetra Packs. The proposed installation of TBA-19 machine will improve the capacity of 200 ml Slim Tetrapak by 30% from 6000 per hour to 7800 per hour.

2. Gujarat

The project for setting up of cold storage unit in Mahuva, Gujarat for onion/dehydrated onion being implemented by GAIC Ltd is near completion. The facility has 5 cold storage chambers, 3 of them of 574.56 MT for dehydrated onion and 2 chambers of the capacity of 399 MT would be utilized for onions only.

Banana has been identified as a thrust produce for exports wherein the focus is laid on development of new varieties. Accordingly, APEDA had sanctioned three common infrastructure projects to Gujarat State Agricultural Marketing Board (GSAMB) in the financial year 2010-11 for banana exports namely at Rajpipla, Pavi Jetpur and Kamrej. These projects are at advance stage of completion during the current financial year.

3. Punjab

APEDA has sanctioned a financial assistance of Rs. 535.00 lakh to PAGREXCO for setting up of five pack houses at Mushkabad, Saholi, Lalgarh, Kangmai

and Babri in Punjab during the financial year 2009-10. The work at the above places is envisaged to be completed during the current financial year.

4. Kerala

APEDA has sanctioned a financial assistance of Rs.154.14 lakh to KSIE Ltd for setting up a cold storage facility at Calicut Airport. The work at the said project is envisaged to be completed during the current financial year.

5. Tamil Nadu

APEDA had sanctioned financial assistance of Rs.436.23 lakh for the Namakkal and Rs.555.50 lakh for the Chennai project to Tamil Nadu Veterinary and Animal Sciences University. The projects are under implementation.

Quality developmental activities:

1) Recognition of laboratories

Two new laboratories were recognized totaling 22 laboratories for sampling and analysis of APEDA scheduled products for exports. One National Referral Laboratory and two recognized laboratories were upgraded with high precision analysis equipments.

2) Revision of following Regulations of exports through control of agrochemical residues and aflatoxins:

Regulation 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 2012-13.

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

3) Following Procedure revised for implementation by IOPEPC for recognition of processing units:

a) Procedure for grant of recognition certificate

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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) Standardization

Contribution to national interpretation of Good

Agricultural Practices (GAP) and Global GAP being

a member of National Technical Working Group of

Quality Council of India.

Participation in the events:

Event Organized :

Summer Fancy Food Show, Washington DC, •USA from 17-19 June, 2012:

The ‘India Show’ at Big Sight, Tokyo, Japan •from 20-22, June, 2012:

Fiscal Food Service Show, Latin America from •25-28 June, 2012:

11th Pro-Food/Pro-Pack and Ag-Biz 2012, •Colombo, Sri Lanka from 6-8 July, 2012

13th Malaysian International Food and •Beverage Trade Fair, Kuala Lumpur, Malaysia

from 12-14, July 2012

Africa’s Big Seven 2012, Johannesburg, South •Africa from 15-17 July, 2012

India Show, Colombo, Sri Lanka from 3-5, •August, 2012

India Show, Czech Republic from 10-14 •September, 2012

World Food Moscow 2012, Russia from 17th •to 20th September, 2012 :

Saudi Agro-Food 2012, Riyadh, Saudi Arabia •from 24-27 September, 2012

Developmental activities In Organic Promotion

National Programme For Organic Production (NPOP)

Organic farming in India is steadily growing

after the implementation of NPOP in 2001 by

the Ministry of Commerce and Industry and

meeting the demand in global market.

During the year 2012, India had exported

300 products under 19 Categories The major

products exported were Cane sugar, Soyabean

& products, Oil seeds, Cotton & Textiles,

Processed Food, Basmati Rice, Sesame, Spices,

Tea, Dry Fruits, Medicinal plants & their

Processed products.

The export volume up to December 2012,

has increased to 23,3127 MT as compared to

11,5417 MT achieved during the entire year

2011-12, thus, witnessing an impressive growth

of 101%.Similarly, in value terms, the export up

to December 2012 has increased to Rs.1742

crore as compared to Rs.839 crore achieved

in the entire year 2011-12, witnessing 107%

growth. These figures exclude textiles.

The export of organic products have been mainly

to the European Union followed by US, Canada,

Japan, Australia, China, Middle East countries

and to some South Asian countries.

The enhancement in organic exports is due to

the recognition of NPOP equivalence by EU

and Switzerland, as well as, the recognition of

conformity assessment procedures of NPOP

by US. Similar recognitions are expected from

Canada, Japan and Taiwan soon.

Presently, there are 24 inspection and

certification agencies accredited under NPOP

for certifying organic products.

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Other Sectoral developmental activities

Horticulture Sector

1. Promotional Programs:

The Embassy of Warsaw conducted small events at Warsaw (Poland) and Vilinus (Lithunia) and APEDA provided mangoes and publicity material and brochures for the events to the Embassy of India in Warsaw. Similar event was also organized by Embassy of India, Berlin for which mangoes and promotional material was provided by APEDA.

2. Market Access issues:

2.1 Success has been achieved in opening up the New Zealand and Chilean market for Indian mangoes during the year. This opens up avenues for exporters for the 2013 mango season.

2.2 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. The export of pomegranates may commence from 2013 season.

2.3 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.

2.4 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.

3. No incidence of surpassing of any pesticide residue tolerance was reported during the grape season 2012 to make the “Grapenet” traceability System more robust, consultations with trade and stakeholders were held and the RMP document was modified to include 175

agro chemicals for testing prior to shipments

to EU.

4. Vegetable Clusters:

In the 6 states of Karnataka, Kerala, Tamil Nadu,

Andhra Pradesh, Maharashtra and Gujarat,

stakeholders meetings were held to chalk out the

way forward with regard to evolving a mechanism

to monitor the pesticide residues in potential

vegetable items like Bitter Gourd, Okra, Brinjal,

Curry Leaves, Drumsticks and Green chilly for

export to EU and Middle East countries.

Livestock Sector

1. Opening up of new market like Tunisia and

efforts were continued to open other markets

like Russia, China and Indonesia.

2. Handled the issues related to export of frozen

buffalo meat in the existing markets like Egypt,

Jordan, Saudi Arabia, Malaysia, Angola, Iraq.

3. A four member delegation from Egypt had

visited India from 27th May to 16th June

2012, for inspection of abattoir-cum-meat

processing plants, who approved 16 no of

plants for export of boneless frozen buffalo

meat to Egypt.

4. Export of honey was resumed to Europe.

5. Visit of Plant Registration Committee were

coordinated by APEDA for inspection of

various meat plants and animal casing

processing units for registration of meat

processing plants for exports.

6. 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. Meat processing plants were

encouraged to implement quality systems

such as HACCP, ISO, etc.

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Special steps initiated by APEDA for export of Quality Buffalo Meat Products from Country:

As per DGFT notification dated 31st Oct. 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.

The above notification has been issued to clarify the correct position that even an ‘abattoir’ (from which meat is obtained / sourced for export) is required to be registered with APEDA. The registration with APEDA will ensure that the said abattoirs will maintain standards of quality, hygiene and safety which, in turn, will ensure that the meat exported from India conforms to the required standards of quality, hygiene and safety.

Other Initiatives:

Coordination amongst different organizations involved in exports of meat, the existing rules, regulations, guidelines and formats etc. of these organizations is being interpolated for:

i. Sourcing of raw material by meat processing plants.

ii. Reassessing capacities of abattoirs/meat processing plants.

iii. Recognition of municipal abattoirs by APEDA supplying carcasses for export of meat processing plants from India.

iv. Working closely with Directorates of Animal Husbandry in the States where abattoirs/meat processing plants are situated for quality improvements in municipal slaughter houses.

v. Mechanism for regulating the exports of meat by merchant exporters to maintain the quality parameters of importing countries.

Cereals Sector

Registration of Basmati Rice as GI

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

In response nine oppositions were received by the Registry. Response to the nine oppositions has been filed by APEDA. Some applications came for hearing in December and some are adjourned to January - February, 2013.

International Fairs

Focus on promotion of Basmati Rice in the international trade fairs:

A special focus is given on promotion of Basmati Rice in the most of the international trade fairs where APEDA participates with All India Rice Exporters Association.

Basmati Rice wet sampling was done at:

Gulfood 2012, Dubai from 19 – 22 February •2012

Summer Fancy Food Show 2012, USA from 17 •– 19 June 2012

Africa’s Big Seven, Johannesburg, South Africa •from 15 – 17 July, 2012

World Food, Moscow from 17 – 20 September •2012

Saudi Agro Food, Riyadh from 24 – 27 •September 2012

Sial 2012, Paris, France from 21 – 25 October, •2012

World Food Ukraine from 31st October – 2nd •November, 2012

“Gala Event” at Port Moresby, Papua New •Guinea on 28th November, 2012

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Training Programmes organized by Basma-ti Export Development Foundation (BEDF) between April – September 2012

Basmati Export Development Foundation has organized 16 workshops on “Quality Improvement in production of Basmati Rice for Export” and “Good Agricultural Practices for Production of Export Quality Basmati Rice” through its Demonstration and Training Farm in Basmati growing states viz. Haryana, Jammu & Kashmir, Punjab, Uttar Pradesh and Uttarakhand to educate the farmers regarding production of best quality Basmati Rice for Export purpose with the following objectives:

To train the farmers for seed production•

Identification of insect-pests and diseases •of basmati rice and their proper control

Awareness regarding pesticide residue •problems

Transfer of Production Technology•

Interaction between farmers and •scientists

Processed Food Sector

Workshops on Groundnuts

1. Workshop at Junagadh

A one-day workshop ‘Good Agricultural Practices (GAP) and Production of Aflatoxin-Free Groundnuts’ was organized on 5th June, 2012 at Directorate of Groundnut Research, Junagadh. The total number of the participants was 106, which comprised 73 groundnut farmers, 13 representatives of groundnut processing units, and 20 scientists/technical personnel.

The following points emerged from the representatives from the processing units:

The growers may be encouraged to •produce bold seeded groundnuts as these are preferred by the importing countries.

Moisture content of the export •consignments may be controlled in the manner that it never exceeds critical levels during storage, processing and at transit.

Farmers may also be advised to control •other disease or factors which may indirectly promote growth of the mould and aflatoxin contamination.

The contract-farmers must also certify that •their produce is free from aflatoxin.

As the produce originating from Rajasthan •has been reported to be of better quality it has a good potential for establishing processing units for production of aflatoxin-free groundnut.

2. Workshop at Kodinar-Gujarat:

Directorate of Groundnut Research, Junagarh, Gujarat organized a one-day workshop on ‘Improved Practices for Production of Aflatoxin-Free Groundnuts’ was organized on 7th September, 2012 at Krishi Vigyan Kendra (KVK), Kodinar. The total number of the participants was 99, which comprised 82 groundnut farmers (few number of small traders also included) and 17 scientists/technical personnel.

The workshop was concluded with the issuing manual ‘Improved Practices for Production of Aflatoxin-Free Groundnuts’ and participation certificates to all the delegates.

Visit of Indian Delegation to EU regarding testing of groundnuts.

IOPEPC laid a delegation to EU counties i.e Spain, The Netherlands, UK and Belgium. The delegation comprised of ten officials from IOPEPC, NRL and nominated laboratories from India visited Felixstowe port, UK, Public Analyst Scientific Services laboratory at Norwich, UK, NVWA office at Zwijndrecht and Warehouse at Rotterdam port, Netherlands and office of the DG-SANCO, Brussels from 10th-14th June, 2012.

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Peanuts and peanut products are being exported from India to number of countries worldwide. The European countries also account for some of the exports from India. As some of the Indian consignments did not meet the EU criteria for maximum levels for Aflatoxins, a number of rapid alerts were issued by EU. Consequent to increased number of rapid alerts against exports of Indian peanuts and the concern expressed through Indian Embassy in Brussels, IOPEPC called an urgent meeting of all the stake holders including APEDA, Nominated Laboratories and Exporters on 4th February, 2012 at their office.

One of the important points discussed during this meeting was regarding wide variation in the Aflatoxins analysis of the peanut lots carried out by the laboratories in India and EU. There were also major variations in the sub lots of the same sample analyzed in EU laboratories apart from ambiguities about the sampling procedures being followed at different ports in EU in comparison to sampling procedures followed in India.

To synchronize the sampling and the analytical procedures in India and EU, it was decided to depute a delegation comprising officials from IOPEPC, exporters and the Indian laboratories to EU to visit different ports and laboratories in EU.

Wine Event at Pragati Maidan, New Delhi – July 30, 2012

The Agricultural and Processed Food Products Export Development Authority (APEDA) continuously strives to encourage the export of the commodity. For this, APEDA organized a promotional activity to showcase the Indian wines, on July 30, 2012, at Pragati Maidan, New Delhi. The event, ‘Wines of India’, was inaugurated by Shri Anand Sharma, the Hon’ble Union Minister for Commerce, Industries and

Textiles, Government of India. Overall, the purpose of the event was twofold; firstly, to let the diplomatic and expat community gain firsthand knowledge about Indian wines and secondly, to launch the Standards for Organic Textiles. Foreign Secretary, Commerce Secretary, Secretary-MFPI and Chairperson and Managing Director – ITPO grace the occasion.

Furthermore, a wine tasting session was organized, wherein various eminent personalities and dignitaries tasted a varied range of Indian wines. The tasting session was conducted by one of the prominent Indian Wine Sommeliers, Magandeep Singh.

Agri Export Zones

The 60 AEZs notified between 2001 and 2004 by the Steering Committee envisaged an investment of Rs.1717.95 crore and export of Rs.11821.47 crore over a period of 5 years. Against these projections, these AEZs are reported to have crystallized a total cumulative investment of Rs.1490.65 crore and cumulative export of Rs. 38363.00 crore. (The data of actual exports & investment received from state nodal agencies implementing the AEZS have been compiled cumulatively.)

vi) 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.

Role: An Act to provide for the development under the Control of the Union of the Tobacco Industry as per the Tobacco Board Act, 1975.

Functions: The important functions of the Tobacco Board are:

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

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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.

Production

FCV Tobacco Production Regulation:

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 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.

FCV Crop Production Policy

Tobacco Board has fixed a crop size of 98 M.Kgs

in Karnataka for 2012-13 season. For the State

of Andhra Pradesh, Odessa and Maharashtra,

the Board has fixed a crop size of 170 M.Kgs.

Production - FCV Tobacco

FCV tobacco is cultivated in more than 2.00 lakh

hectares every year. In 2012-13, the area under

FCV tobacco had declined below this mark for

the first time to 1.88 lakh hectares consisting

of 0.94 lakh hectares each in Karnataka and

the States of Andhra Pradesh, Odessa and

Maharashtra. The decline in area is about 13%

when compared to 2.17 lakh hectares planted

in 2011-12. 41,842 Growers in Karnataka and

46146 in Andhra Pradesh are engaged in FCV

tobacco cultivation.

FCV tobacco production in India is declining

for the last two years after a peak of 323.25

M.Kgs in 2009-10. FCV production in 2012-

13 is estimated at 250 M.Kgs down by about

7% over last year’s production of 267 M.Kgs.

The production of FCV tobacco in Karnataka is

estimated at 88 M.kgs and that of AP at 162.00

M.kgs. Overall decline in area planted and

severe drought during active growth phase in

Karnataka had contributed to this decline.

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Chart 8.6

The overall productivity of FCV Tobacco in 2012-13 is estimated at 1329 kg/ha based on estimated production as against 1229 kg / ha in 2011-12.

Growers Welfare Schemes

Tobacco Board Growers Welfare Scheme was launched in March 2010 to finance welfare activities for the tobacco growers and their families. Under this scheme, the Tobacco Board provides relief in the form of financial assistance in the event of death of grower member, treatment of major illness, advances for repair of barns in case of natural calamities, marriages of girl child of the grower member and loans for professional studies of growers’ children etc.

Other services

Tobacco Board every year undertakes analysis of soil and water samples collected from growers’ fields 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 2012-13 crop season, 2117 soil samples and 610 water samples in AP 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 programmes.

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

Extending financial assistance to farmers •wherever required

Tray Nurseries – Quality Seedlings

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

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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 establishes immediately with minimal gap fills and produces uniform crops.

The Board with a view to propagate this new technology has organized supply of 12.68 lakh of trays with corresponding quantity of coco-peat to growers at subsidized cost in A.P and Karnataka states.

Fertilizers

The Board organises timely supplies of various fertilizers required by growers in A.P. and Karnataka at competitive prices. For 2012-13 crop season, the Board had supplied about 32,000 tons of fertilizers in A.P. and 32,495 tons in Karnataka.

Farm Mechanisation

Bullock Drawn Ridgers / Tyne Cultivators / Ridgers

In order to improvise the farm operations and ridge formations in the tobacco fields, the Board had organized supply of 252 Bullock Drawn Ridgers and 2152 Tyne Cultivators to growers in Karnataka at subsidized cost.

PVC pipes

The Board with a view to help the growers in the drought prone area of A.P to go for a life saving irrigation using available waters in the wells / ponds had indented to supply 25,000 PVC pipes at subsidized cost and the same is under progress.

Power Sprayers

The Board with a view to help grower to take up timely plant protection measures had indented for about supply of 200 Taiwan power sprayers in A.P at subsidized cost and the same is under progress.

Curing of Tobacco - Energy Conservation

The Board encourages growers up grade the furnace in the curing barn by supplying Venturi Furnaces at subsidized cost – Coverage – 160 barns so far in 2012-13.

Product Integrity

Now a days, 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. In this context, the growers had indented for supply of 6044 tarpaulins at subsidized cost in A.P. & Karnataka during 2012-13 crop season.

Input Loans

The Board organises input loans to growers in A.P. and Karnataka states for procurement of various inputs viz., fertilizers, pesticides, fungicides, trays, coco-peat, sprayers, tarpaulins, etc., at most competitive rates of interest. The Board had organized input loans of about Rs.82 crore in Karnataka at 4% rate of interest p.a and for at A.P at 4% for 2012-13 crop season.

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.

Progress made during 2012-13

a) In Andhra Pradesh a total quantity of 153.63 M Kg of tobacco was marketed at an average price of Rs.94.45 per Kg between 1/04/2012 to 03/09/2012 (last auction sales day).

b) During the period January to March 2013, it is anticipated that about 10 M.Kgs. of 2012-13 Andhra Pradesh FCV tobacco crop would be marketed.

c) A quantity of 19.71 M.Kgs. of 2012-13 Karnataka FCV tobacco crop was marketed

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at an average price of Rs. 121.06 per kg. up to 20/11/2012. It is anticipated that the entire estimated production of about 85.74 M.Kgs. of 2012-13 Karnataka FCV tobacco would be marketed by the end of March 2012. The average price realized as on 20.11.2012 is more by Rs. 17.94 per kg (17.40%) over the average price of Rs. 103.12 per Kg realized by the farmers of Karnataka for the same volume sold last year.

Price support operations

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

Marketing and exports

Export performance in - 2011-12

The exports of tobacco and tobacco products during 2011-12 were 240395 tons valued at Rs. 4100.30 crore (854.94 M.US$) against 252298 tons valued at Rs. 4210.41 crore (923.95 M.US$) exported in 2010-11.

Progress of exports in 2012-13 (April – Sep-tember 2012)

During April – September 2012, exports of Tobacco and Tobacco Products were 128054 tons valued at Rs.2296.87 crore (419.60 M.US$) against 113626 tons valued at Rs.1830.15 crore (404.36 M.US$) exported

during the corresponding period of last year.

During April – September 12, the unmanufactured tobacco exports were in the order of 112472 tons valued at Rs. 1800.79 crore and exports of Tobacco products are in the order of 15582 tons valued at Rs. 496.08 crore. The unmanufactured tobacco exports had increased by about 18% in quantity terms and 30% in value terms, while the exports of tobacco products declined by 13% in quantity terms and increased by 10% in value terms during this period. Overall, exports of Tobacco and Tobacco Products increased by 13% in quantity terms, 26% in Rupee terms and 4% in Dollar terms over the corresponding period of last year.

Export promotion activities

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) World Tobacco Middle East 2012, Dubai, UAE during 2-4 April 2012

2) Inter Tabac 2012, Dortmund, Germany during 14-16 Sep., 2012

3) World Tobacco Asia 2012, Jakarta, Indonesia during 19-21 Sep., 2012

4) ProtobEx Asia 2012, Manila, Philippines during 20-22 March 2012

As a part of export promotion activities, Chairman, Tobacco Board had participated Global Tobacco Networking Forum, Antwerp, Belgium during 11-15 June 2012 .

Commodity Apr-2010 Mar 2011

Apr 11 to Mar 12

Apr- Dec 2011 Apr-Dec 2012

% Growth

AGRI & ALLIED PRDTS Tobacco 4210.41 4100.30 2719.72 3639.74 33.83a) Unmanufactured 3192.39 3090.21 1914.21 2748.56 43.59b) Manufactured 1018.02 1010.09 805.51 891.19 10.64

Table 8.14 Export of Principal Commodities

(Value in Rs.crore)

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Table 8.15 Export of Principal Commodities

(Value in US$ Million)

Commodity Apr-2010 Mar 2011

Apr-Mar 2012

Apr-Dec 2011

Apr-Dec 2012 % Growth

AGRI & ALLIED PRDTS

Tobacco 923.95 854.94 576.72 669.54 15.75

a) Unmanufactured 700.55 644.33 406.09 504.53 24.24

b) Manufactured 223.40 210.61 170.63 163.01 -4.47

vii) The Marine Products Export Develop-ment 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

Compared to the corresponding period of previous year, Exports of Marine Products during the first nine months of 2012-13 (April – December) registered a growth of 1.38 % in quantity, 9.10% in Rupee value and a decline of 5.30 % in US $ realization as indicated Table. 8.16

Export details2011-12

(April – December)2012-13

(April – December)Growth %

Quantity Tonnes 6,78,492.00 6,87,888.00 1.38

Value in Rs. Crore 13,198.63 14,399.79 9.10

US $ Million 2,831.51 2,681.54 -5.30

Unit Value $ / Kg 4.17 3.90 -6.59

Table 8.16Export Performance of Marine Products

Major Export Markets

South East Asia became the largest buyer for Indian marine products with a share of 36.87 % in quantity followed by European Union, United States of America, China, Japan and Middle East.

Major Items of Export

Frozen Shrimp continued to be the major export item during the period of April to December 2012 accounting for a share 51.96 % of the total US $ earnings. Fish, the second largest export accounted for a share of about 37.83 % quantity and 17.97 % in US $ earnings. Chilled items exports during the period increased by 37.73 % in quantity, 70.61 % in Rupee value and 49.43 % in US $ earnings.

Thrust Areas

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

1) 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.

2) Implementation of Catch Certification scheme for preventing / discouraging Illegal, Unreported and Unregulated (IUU) fishing.

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3) Diversification of the culture practices in to commercially important Shell fishes and Fin fishes to enhance aquaculture production and increase the varieties.

4) Production through Organic farming in potential areas for value addition of aquaculture products.

5) 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.

6) The upgradation of fishing harbours to international standards is a must for sustaining / expanding our international markets.

7) Assisting the setting up of state-of-art processing facilities for Value Added Marine Products meant for export.

8) MPEDA is operating a Sea-freight assistance scheme for the promotion of export of value added marine products by the registered seafood manufacturer exporters. The scheme also offers assistance for importing of raw materials for further processing and re-exporting as value added seafood.

9) MPEDA has introduced a voluntary “LOGO” of quality for promotion of value added consumer products in major markets. Under the Scheme, the logo has been awarded to one more unit in Gujarat.

10) MPEDA is operating an insurance scheme with M/s. United India Insurance Co. Ltd., to safe guard the welfare of the workers employed in seafood processing and pre-processing industry.

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

12) Extending linkages to the grass root level by ensuring better extension packages to

fishermen / farmers and the workers engaged in various stages of processing of marine products.

13) Establishing presence of Indian Seafoods in major International markets by co-branding Indian products with seafood giants abroad.

14) Participating in International Seafood Shows to showcase the strength of Indian marine products industry and trade relationship and Organized biannual India International Seafood Show and Aqua Aquaria India.

15) Registration Certificates and RCMC Certificates are issued on-line through MPEDA Offices. Financial Accounting, Payroll, Pension, Personnel, GPF, Stores and Inventory, Asset Management etc are computerized. Subsidy Application processing & Subsidy disbursement, NRCP Lab testing are also computerized and e-procurement system has been introduced.

Steps taken to increase production and exports

1. Extending financial assistance for conversion / construction of Tuna Longliners and imparting training to crew for the development of Tuna industry.

2. 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.

3. Under the Catch Certification scheme introduced from 1st January 2010, MPEDA have validated 25,953 certificates and for the period 1st April 2012 - December 2012, 5,623 Catch Certificates were validated.

4. Extend technical and financial assistance for the development of new area under Shrimp and Scampi culture in all the maritime States

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of the country for sustainable production of seafood.

5. 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 2012-13 up to December 2012 was 2,41,891 MT of which Scampi was only 5,271 MT. In shrimp production 50 % was Tiger and the rest was L. vannammei. The Aquatic Quarantine facility established by RGCA / MPEDA at Chennai screens all the imported SPF L. vannamei broodstock 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.

6. 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.

7. 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.

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

9. MPEDA extending financial assistance for establishment of PCR diagnostic laboratories in the hatcheries / private labs under Shrimp Health Management. GIS Mapping of Shrimp and Scampi farms in

the maritime States except West Bengal is in the final stages of completion.

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

11. 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.

12. Organic Shrimp produced in West Bengal and Andhra Pradesh were exported to Europe from 2010-11. The Organic freshwater Prawn (Scampi) produced from Kerala was also exported to Europe during the year. The Authority plans to expand the area under Organic aquaculture in order to increase the Organic seafood production from the country to meet the international demand.

13. MPEDA is encouraging mass production of good quality Ornamental Fish by assisting breeders for setting up modern breeding centres. Under this scheme, subsidy assistance up to maximum of 50% of capital investment is given for setting up Ornamental Fish Breeding Units classified into 3 grades based on the investment and production capacity. The maximum assistance for Grade - I, II & III unit is Rs. 75,000, Rs.2,00,000 & Rs. 7,50,000 respectively. Employment generation in rural and semi urban areas is a bye product of this scheme.

14. The guidelines for Green Certification of Freshwater Ornamental fish have been prepared and released to ensure product

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quality, safety and traceability and thereby adding value to the produce. MPEDA has also formulated the guidelines for the registration of Ornamental Fish Breeding Units (OFBU) for a stable, healthy and sustainable ornamental fish sector in the country. The preliminary survey of the existing facilities available in the Ornamental Fish sector in India has been completed for the implementation of Green Certification.

15. MPEDA is setting up training centres in the five States West Bengal, Maharashtra, Karnataka, Tamil Nadu and Kerala for imparting training and technical support for the Ornamental Fish farmers.

16. MPEDA assists the Processors / Pre-processors to construct / renovate Captive/ Independent Pre-processing Centres as per EU/HACCP guidelines.

17. MPEDA introduced the Interest Subsidy scheme to compensate a certain amount of interest payable by the Plant Owners to the Bankers from whom they have availed loan for the up gradation of their facilities to achieve equivalency to EU/GOI norms.

18. A two member Japanese Delegation from the Ministry of Health, Labour & Welfare. Japan visited India from 30th July to 3rd August 2012 as part of their general survey on Quality Control system of major countries exporting their products into the Japanese market. The Team visited the office of the EIA and their Inspection Laboratory at Kochi, M/s. SEALAB at Aroor and MPEDA Head Quarters at Kochi and the Residue Monitoring Lab of MPEDA. An opening meeting was held at New Delhi and a closing meeting chaired by Joint Secretary, MoCI was held at MPEDA, Kochi.

19. A delegation led by the Chairperson, MPEDA and comprising the Director, EIC and Resident Director designate, MPEDA

visited Japan during 4th to 7th September 2012. The delegation met Japanese Officials and Japanese Minister for Health, Labour & Welfare and requested that the standards for Ethoxyquin in Shrimps be fixed only after proper safety studies and till then, the level permitted for fish consignments could be allowed for Shrimps. An Indian Delegation led by Shri S. R. Rao, Secretary, Department of Commerce, Government of India attended the India – Japan Comprehensive Economic Partnership agreement review meeting held at Tokyo from 16-17, October 2012 wherein the Ethoxyquin issue was deliberated.

20. In order to improve the hygienic conditions of the Fish Landing Centres and ensure the quality of the raw material used for processing, Tube Ice making machines / Chill Rooms were being installed at three harbours in Andhra Pradesh and two harbours in Tamil Nadu.

21. To prevent unhygienic and unauthorized pre-processing activities, two common Pre-processing Centres (CPC) have been constructed at Ambalapuzha and Sakthikulangara in Kerala. State Cell of MoCI has accorded sanction for another CPC at Balramgarhi in Odisha.

22. MPEDA has four Quality Control laboratories, of which the laboratories at Kochi, Bhimavaram and Nellore are implementing the National Residue Control Plan (NRCP) for Aquaculture products. The Quality Control lab at Bhubaneswar is operating on contract for testing of commercial samples. During January to December 2012, a total of 2772 (including 68 follow up) samples were analysed by these labs under NRCP 2012.

23. 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

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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 2012 a total of 30,756 samples were tested by ELISA labs.

24. 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. Out of 100 samples targeted, we have analysed 63 samples till December 2012.

25. MEPDA 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 2012-13, 480 samples of inland fishes and crustaceans, marine crustaceans from the maritime states of India were analysed and the results were communicated.

26. MPEDA offer developmental assistance for the export of ornamental fishes/ aquarium plants to the registered exporters and the assistance is to the tune of 10% of FOB value.

27. 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.

28. MPEDA introduced the Technology Upgradation Scheme for Marine Products (TUSMP) to provide financial assistance to exporters for setting up new units (Category I), to expand the existing production capacity for value added products (Category II) and for diversifying into value addition (Category III). The assistance will be subject to full commitment of the exporter by fulfilling an annual export obligation

covering specifically notified value added products.

29. MPEDA is extending financial assistance under the sub components 1. Subsidised distribution of Insulated Fish Boxes, 2. Acquisition of Refrigerated Trucks/Containers, 3. Financial Assistance for the construction of new large Cold Storages, 4. Setting up of New Ice Plants/Renovation of Existing Ice Plants.

30. MPEDA is extending financial assistance to exporters for creating basic infrastructure facilities for Chilled Fish/Tuna for export and setting up of fish handling/ curing/ solar drying facility and packing and storage facility.

31. MPEDA has a vision to set up Special Economic Zones (SEZ) to promote import of raw material for value addition and re-export and to make India a seafood processing hub.

32. Under export promotion schemes, MPEDA participated in major international seafood fairs around the world and displayed a wide range of India’s products especially value added products to generate awareness and demand.

33. In order to disseminate the vast potential of the fisheries and aquaculture sector and to highlight investment opportunities in this field by Indian entrepreneurs, MPEDA has participated in domestic fairs. MPEDA organised the 18th Indian International Seafood Show at Chennai from 29th February to 2nd March 2012 and a total 698 delegates participated in the Seafood Show. About 100 number of foreign delegates also participated in the show.

34. As a part of promotional measures in seafood and marine products production sector, MPEDA has made arrangements to organise second edition of AQUA AQUARIA INDIA 2013, an International show focusing the aqua culture and Ornamental Fish sector

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in February 2013 at Vijayawada. A total of about 5000 Indian and overseas delegates are expected to attend the show and a total 125 exhibitors including those from USA, UK, Thailand, Singapore, Malaysia, China etc. are participating in it.

35. MPEDA brings out a monthly magazine, MPEDA News letter, to disseminate the information on trade developments, enquiries, quality regulations, and other topics of interest related to Aquaculture, Seafood processing and Ornamental fisheries to the stakeholders across the country.

36. A weekly publication, PRIME brought out by MPEDA disseminate indicative price of various seafood items in different markets across the world and is widely circulated among exporters and other stakeholders.

37. MPEDA invites delegation to visit India and sends delegation to leading seafood-buying countries to strengthen the trade links and opened up many business opportunities for the seafood trade which would be further strengthened by future delegations.

38. 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.

39. 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.

40. NaCSA, a Society promoted by MPEDA undertaking extension education programmes continue their efforts in culture fisheries sector, for quality up gradation and for capacity building of small scale shrimp farmers and educate 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.

(A value added product - Breaded Cobia meat)

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B. TRADE FACILITATION INSTITUTIONS

i) Indian institute of foreign trade (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, conducting research and providing consultancy services. Since then, the Institute has been the pioneer in imparting training in foreign trade management in the country besides undertaking research and consultancy in various areas of International Business. It is because of its all round achievements that 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).

As per the directions of Ministry of HRD, Review Committee of UGC reviewed the activities of the Institute in 2010 and IIFT was notified as a deemed to be university on a permanent basis.

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.

Details of the major activities carried out by the Institute during 2012-13 by different Divisions/Sections of the Institute are given below:

Convocation

46th Convocation of the Institute was held on 27 March 2012. Shri Anand Sharma, Hon’ble Minister of Commerce, Industry & Textiles, Government of India delivered the Convocation Address and awarded medals/prizes and certificates to the meritorious students securing first, second and third positions in the different Programmes organized by the Institute during the last one year.

Education

1. Foundation Programmes, including Ph.D., MBA(Degree), Part-time MBA(Degree) – 12

2. Part-time Certificate Courses – 04

Training

1. Open Programmes -9

2. Training Programme for IFS Probations – 1

3. Training Programme for IPS and other senior police officers – 1

4. Training Programme for IRS Probationers – 2

5. In-Service Training Programme for ITS Probationers - 01

6. Sponsored Programmes -7

Research studies completed during the year

The Institute has completed following research studies during April 2011 to March 2012 :

a) Initialization of Import of Coal by the Coal India Ltd.,

b) Analysis of Export Performance of Handicrafts by Vietnam,

c) Bilateral Investment Flows & Potential Opportunities in Select South Asian Countries,

d) Study on Agricultural Outsourcing (AO),

e) Study on Open House Sessions with Industry Association for facilitating India-Israel FTA Negotiations,

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f) Compendium on Import Policy of India for ASEAN, Korea and Singapore region,

g) Impact of External Capital Flows on MFI Performance,

h) Setting up a Coastal Waterway connecting North Kerala to South Kerala.

In addition to above, 09 other research studies are in progress.

International Collaboration and Capacity Development (ICCD)

IIFT offers a number of Courses and Programmes outside Delhi and Kolkata through on-line mechanism for working executives. These include :

Foundational Programmes

Part-time Certificate Progamme

The ICCD Division also encourages faculty to participate in national/international Training, Programmes/Workshops and Conference/Symposiums.

International Project (IPD)

To implement the decision taken at the Indo-Africa Summit held in 2008, the Institute has created International Project Division (IPD).

The Institute has been entrusted with responsibility of setting up of India Africa Institute of Foreign Trade (IAIFT) and conducting customized Capacity Building Programmes on International Business in various African countries.

An MoU between the African Union (AU) and the Government of the Republic of India was signed on 23 May 2011. Subsequently, a Stakeholders’ Workshop was held at Kampala during 13-14 June 2011 so as to conceptualize the Vision, Mission and Strategy of the Institute wherein over eighty stakeholders participated representing government officials, academicians, exporters and entrepreneurs. On 23rd August 2011, the Government of Uganda

designated Uganda Management Institute (UMI) as the partner interim host Institute for India Africa Institute of Foreign Trade. The MoU between the Government of Uganda and IIFT, the implementing agency on behalf of the Government of India has already been sent to the Government of Uganda by MEA on 13 October 2011.

Also, a three-member delegations from Uganda visited IIFT, New Delhi during 17-19 October, 2011 for expediting project implementation. The Ugandian Minister of Trade, Industry and Cooperatives, Hon’ble. Ms. Amelia Kyambadde visited IIFT on 20 March 2012 to expedite implementation of the project.

During 2011-12, the Institute carried out Capacity Building Programmes in Burkina Faso, Sudan, Mauritius and in Delhi exclusively for the African participants. Also, the Institute organized an International Conference in collaboration with OECD and ADBI.

IIFT Centre at Kolkata

The Kolkata Campus of the Institute was set up during 2006. The construction of own premises is progressing fast and it is expected to shift operations of the campus in the next academic year. Currently apart from the structural work, other support activities for the infrastructure like IT, furnitures and fittings, etc. have also been taken up.

The Kolkata Campus has a Computer Centre with a good number of PCs available for all students. All services including internet, email, databases, etc. available at Delhi campus are provided at Kolkata through dedicated link.

Library

The Library of IIFT is a fully automated library and is one of the largest of its kind having a focus on International Business in India. In order to facilitate online access to information, the Library has also subscribed to trade related twenty seven online and offline databases.

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The WTO Resource Centre has a rich collection of books, reports, journals, video-cassettes, CD-ROMs and news items/articles on WTO and related issues.

The Library of Kolkata Campus is gradually growing with resources of traditional type as well as electronic and virtual information. The collection is fully automated with the facility of Online Access Catalogue and bar-coded circulation. The Library is enriched with its virtual resources, called the e-brary, which is accessible round the clock.

Publications

During the year, Institute continued the publication of its periodicals - Foreign Trade Review (quarterly), Focus WTO (bi-monthly). The publication of Trade-Technology E-Zine of Centre for International Trade in Technology of IIFT also continued since January 2010. It is being uploaded on IIFT website (www.iift.edu) every week.

Computer Centre

The IT facilities at IIFT include state-of-the-art IT infrastructure. There are well equipped Computer Centres exclusively for the students and for training & research activities of the Institute. The Computer Centres for the students are open round-the-clock and have access to all IT facilities, including internet.

IIFT has its own Data Centre equipped with Unified Storage, Virtualized Server Environment, Web Servers, E-mail Servers, etc. for the use of users of the Institute. Institute is connected to internet through total 24 MBPS leased line with three backup ISPs on load balancing. Apart from this, IIFT also uses video conferencing facility to connect to different part of the world.

The institute has a multi-tiered network infrastructure in place. Buildings inside the campus are well connected with fibre network. The network infrastructure is at a layer 3 switching level that helps inter-connect all components of

the same together on one platform. Over 1,000 users have access to this network.

Institute’s network is also supplemented with secured managed WiFi supporting 802.11n standards. Class rooms are equipped with PCs and LCD projectors.

IIFT has developed several enterprise applications in-house using .NET, ASP, Oracle and SQL platforms. These applications cater to on campus as well off campus programmes of the Institute.

Centres of IIFT

Centre for International Trade in Technology (CITT)

New initiatives were taken by the CITT to forge linkage between trade and technology through specialised studies as well as it continued its activities related to policy, research, education and training.

Centre for MSME Studies

IIFT’s Medium Small & Micro Enterprises (MSMEs) Centre aims at providing continuous support to the SME sector by carrying out activities which are broadly classified into conducting Training Programmes, 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.

Centre for WTO Studies

The Centre for WTO Studies was set up with the support of the Department of Commerce, Government of India in IIFT in the year 2002. One of the primary objectives of the Centre is to provide research and analytical support on the WTO and other trade negotiations to the Department of Commerce.

ii) Indian institute of packaging (IIP)

The Indian Institute of Packaging, an apex body in the field of Packaging, was set up in 1966 by the

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Packaging fraternity in association with Ministry of Commerce & Industry. The Institute has since opened its branches at Chennai, Delhi, Kolkata, and Hyderabad. The Institute has also planned to set up its branches at Ahmedabad, Guwahati and Bangalore under the 12th five year plan. The primary objective of the Institute is to stimulate consciousness of good packaging through (a) research and development studies in packaging and package design for export promotion, (b) short term and long term education and training program in Packaging and (c) seminars, conferences in collaboration with other Ministries, Departments, and Industry Associations.

Vision

Make Indian Institute of Packaging (IIP) a •global “Centre of Excellence” for Packaging education & allied services.

Make IIP a “Single Window” for sustainable •and innovative solution provider for packaging challenges for Indian Industry and for global community.

Develop close relationship with International •Packaging Fraternity.

Make India a developmental hub of art, •science, technology, engineering and entrepreneurship in packaging.

Highlight the role of Packaging in National •Economy and Create Public awareness about it.

Accomplishments(Packaging development and R&D)

The Institute’s Consultancy & Research and Development Wing undertook and completed some of the major projects during 2012 which include:

Advisory ServicesGodrej Industries Ltd.Havmor Icecreams Ltd.India Security Press

Zircar Crucibles Pvt. Ltd.

Project titlePackaging of pastle & flakes of fatty alcoholPackaging of Ice creamPackaging of travel documents (Passport , New Visa Stickers, Person of Indian Origin Cards)Packaging of Crucibles

Consultancy Services

Currency note Press

Project title

Field trials of boxes, developed for currency notes (In progress)

APEDA Project on updation & printing of folders for packaging specifications for fresh & processed food products (In progress)

APEDA Modified atmosphere packaging of meat & meat products for exports (In progress)

Exide Industries Ltd. Improvement in Packaging procedures, Packaging Materials, Loading Methods for Battery Container.

Phoenix Conveyor Belt India (P) Ltd. Packaging Materials & Package Designs for Conveyor Belts to improve Durability as well as Presentability of the Product.

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Testing and evaluation of packaging materi-als and packages

The testing laboratories of the Institute at Mumbai are accredited to National Accreditation Board for Testing and Calibration Laboratories as per ISO/IEC:17025. The testing laboratories of the Institute are also accredited to Bureau of Indian Standards (BIS). All the testing laboratories of the Institute located at Delhi, Kolkata, Chennai and Hyderabad are also authorized by Directorate General of Shipping and Directorate General of Civil Aviation, GOI, for testing and issue of UN Certificates for the packages, for export of dangerous goods. The laboratories of the Institute are also recognized by the Department of Scientific and Industrial Research (DSIR), Ministry of Science and Technology under the scheme of Scientific & Industrial Research Organizations (SIRO).

The Institute undertakes evaluation and certification of packages designed for export of dangerous goods, by sea, as well as by air.

The laboratories at the head office is equipped with state of the art equipment for testing of packaging materials and packages. The laboratory has got the facilities for carrying out more than 350 types of tests for different kinds of packaging materials, like paper and paperboard, plastic films and laminates, glass plastic containers, plastic woven sack, jute bag, tarpaulin, geo membrane multi-wall paper sack etc. and unit/bulk packages like paper, board, carton, corrugated fibre board boxes, wooden containers, plastic barrels, plastic trays, pallets, metal drums, flexible intermediate bulk containers (FIBC), metal and plastic IBC, Fibre board drums, etc. by following the test procedures prescribed in different national and international standards.

Training and education

The Institute also imparts the training and education on Packaging and conducts two years

Post Graduate Diploma in Packaging (PGDP) on Technology and 18 months Distance Education Program for working executives. The Post Graduate Diploma in Packaging is accredited by the World Packaging Organization (WPO) and Asian Packaging Federation (APF).

Training Programmes & Seminars

World Packaging Organisation (WPO) - Two •weeks Residential training programme on Packaging Principles, materials and Systems, 3rd September to 14th September, 2012.

Sewagram Mahila Haat, Ahmedabad - Three •days Residential Training Programme on Packaging of Food Products, 3rd October to 5th October.

Plastics in Packaging conducted between •29th - 31st May, 2012.

UN Certification for Packaging of Dangerous •Goods For Exports conducted between 18th - 19th July, 2012.

Testing and Evaluation of Packaging Materials •& Packages conducted between 24th - 28th September, 2012.

3 days Training Programme on Packaging of •Handicrafts in collaboration with C.G. Hasthilp Vikas Board, C.G. Haat Premises, Pandri, Raipur, Chhattisgarh conducted during 18th - 20th April, 2012.

3 days Training cum Workshop Programme •on “Quality Control, Branding & Packaging” of Handicraft products at Ranchi, Jharkhand Organized by Export-Import Bank Of India In-Association with Government of Jharkhand from 1st – 3rd August, 2012.

The Silver Jubilee Convocation was held on •15th February 2012 in the gracious presence of Shri Jyotiraditya Madhavrao Scindia, the then Hon’ble Minister of State for Commerce & Industry, Government of India.

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Box 8.6 Major Initiatives by NCTI

S• etting up and Operationalisation and Management of a Computerized Trade Information Centre

(CTIC) at Dharwad;

Handicrafts Study for Development Commissioner of Handicrafts under Ministry of Textiles; •

ITPO – Trade fair websites development, database creation and compilation and analysis of customer •

feedback for select events;

Trade leads and trade data support to Government and Public Sector organisations and SMEs etc.; •

Trade data support for Apparel Export Promotion Council(AEPC) •

Value Adde• d Services to APEDA, NSIC & VITC

Publication

The Packaging India Journal, a bi-monthly journal of the Institute was published by the Institute during April-May, June-July, August-September 2012 on “Packaging Influencing Branding”, “Performance Oriented Electronics Packaging” respectively. This journal covers the developments in Packaging in the field of Plastic, paper, glass, tinplate and other packaging materials including subjects on converters in Packaging, packaging Machinery Manufacturers etc.

iii) National Centre for Trade Information (NCTI)

The National Centre for Trade Information (NCTI) was incorporated on 31st March, 1995 as a Company under Section 25 of Companies Act, 1956.

The Company started functioning w.e.f. March, 1996. It has a Board of Directors for administration of its affairs, which includes representatives from Ministry of Commerce & Industry, National Informatics Centre (NIC), Indian Institute of Foreign trade (IIFT), and Directorate General of Commercial Intelligence & Statistics (DGCI&S), India Trade Promotion Organisation (ITPO), Council for Leather Exports (CLE), The Marine Products Export Development Authority (MPEDA), PEC Ltd, Coir Board and ASSOCHAM.

The 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. The ITPO provides fully furnished office space and the NIC provided Software and Hardware against their equity contribution in kind.

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The Centre provides value added information in the field of electronic trading opportunities, live trade leads from World Trade Point Federation (WTPF), trade data analysis and organizes export awareness seminars, and updates/uploads information on its website. It has uploaded on its Website 52 issues of Trade Point-India containing approximately 250 Trade Leads each week.

Studies Undertaken

India-Chile PTA – Tariff line wise trade data •analysis.

Study on Indonesia and Thailand. •

Data compilation for purpose of actual •presentation by WTO secretariat in respect of Comprehensive Economic Co-operation Agreement between Malaysia and India.

India ASEAN FTA work - Tariff line wise trade •data analysis.

iv) Quality Control and Pre-Shipment Inspection Agency

With the establishment of the World Trade Organisation in 1995 and implementation of Agreement on sanitary and Phyto-sanitary (SPS) measures, countries all over the world started enforcing stricter measures to protect health and safety of their consumers by introducing regulatory import controls, especially in the food sector. Introduction of regulatory import controls has been causing problems to the Indian exporters in terms of multiple inspection, rejections and recall/ destruction of consignments not conforming to their requirements. This has made the role of Export Inspection Council (EIC) and Export Inspection Agencies (EIAs) more relevant in the context of India’s efforts to set ambitious export targets and to achieve them.

Export Inspection Council of India (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 29 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.

Activities and Achievements

Export Certification

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

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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 2011-12, a total number of 858 samples were tested. During April-Dec 2012, 693 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 / 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 2011-12, the EIAs issued 11,08,636 preferential tariff certificates under various Preferential Tariff Schemes, during April-Dec 2012, the number of certificates issued by the EIAs under various preferential tariff schemes stood at 9,73,241.

Strengthening Laboratory Capabilities

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.

Strengthening Manpower

EIC continued its efforts to train both the internal manpower, as well as, conduct awareness programmes for the industry. Till March 2012, 20programme were held for internal manpower in which 300 persons were given exposure. The basic areas which were covered included certificate of origin, dairy products, fish & fishery products, HACCP, computerization, laboratory testing etc.

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Box:8.7

Major activities undertaken in the field of Human Resource during the year

1. Participation of EIA labs in PT programs (FAPAS-UK, EU) to ensure competency and capability for testing, EIA laboratories participated in international PT programs in the year 2011-12.

2. 5 Days IRCA approved Lead auditor Course on ISO 22000 along with FICCI for 20 Officers involved in Monitoring and Inspection.

4. In-house refresher course on Uncertainty Measurement in PTH Mumbai from 18-19th February.

5. Training program on Measurement uncertainty for Laboratory Personnel at Chennai. 18-11-2011 to 20-11-2011. 12 Officials from the Laboratory attended the programme.

6. General Awareness & refresher program on ISO/IEC:17025:2005 and internal audit. 03-03-2012 to 05-03-2012. 12 officials from the laboratory

7. Training on Sampling and Quality Control of Basmati Rice as per EC Regulation was Organized By Export Inspection Council of India in New Delhi on 1st and 2nd March 2012 for 20 officers.

8. A two day training program was organized by EIA-Delhi in association with APOF Organic Certification Agency, Bangalore on “Implementation of organic certification process as per NPOP for Export Inspection Agency officials and Internal Control System for farmer group” on 27-28 October, 2011 at NDYMCA, New Delhi.

9. One day awareness program on Certificate of Origin was organized by EIA Delhi for their officers.

10. The training on ‘Right to Information’ was conducted for EIC/EIA officers in December 2012

11. The Orientation Program of new recruits was conducted from 1st August to 6th August 2011.

12. One Day Refresher course for EIA-Mumbai officials (Monitoring & Certifying officers) on 24.03.2012

13. Organized in house training program for the officers and staff working in EIA-Koch lab in association with M/s Systems and Training Mumbai on Internal auditing as per ISO 17025:2005 from 8.12.2011 to 10.12.2011

14. A training program in association with CII New Delhi on ISO 17020 for the officers & staff of EIAs from 23-25 September 2011 was organized at EIA- Kochi.

15. Training program on Statistical Analysis and Internal Quality Checks for laboratory test results on 6th and 7th January 2012 at EIA Kochi.

16. EIA-Kolkata in association with Confederation of Indian Industries has organised “CII – EIA Kolkata Training on Food Safety and Standards Regulations 2011” at Kolkata on 12th Dec. 2011.

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Computerisation and Modernisation

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 up •to the 31stJanuary 2013 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.

Agreements with other Countries

Continued efforts were made towards entering into Memoranda of Understanding (MoUs)/ Mutual Recognition Agreements (MRAs)/ 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. The status of the existing MoUs/ MRAs/ Recognition Agreements is given in Table 8.17

Table 8.17Existing Agreements/Recognitions on EIC certification

Country Products Covered Year of Agreement/ Recognition

USA Black Pepper 1988

European Commission Fish & Fishery Products, Basmati Rice 1997

Korea Frozen marine products, processed spice goods, processed nuts, tea, honey, jam, preserved goods, sauce, sugar syrup, edible oil and fats

2004

Turkey Food products, food packaging materials and stainless steel utensils 2004

Singapore Food & agriculture (egg products, dairy products, drinking water), Electric & electronic products, Telecommunication equipments and Drugs & Pharmaceuticals

2005

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Exports

The value of exports certified by the EIAs during the year 2011-12 was Rs.13,048.21 crore. During April-Dec 2012, the value of exports certified by the EIAs was Rs.16,112.34 crore as given in Table 8.18

Table 8.18Products Certified for Exports during April – Dec 2012

Group/Product Name Value of product certified (Rs.crores )

Fish & Fishery Products 9,311.46

Basmati Rice 43.11

Black Pepper 127.41

Egg products 209.46

Milk & Milk Products 1,647.11

Poultry 113.46

Honey 231.67

Chemical & Allied products 57.81

Engineering 279.20

Others Schemes 4,091.65

Total 16,112.34

Japan Poultry & marine products 2005

Italy Marine sector (Technical cooperation) 2005

China Iron ore (under renewal) 2006

Saudi Arabia Fish and Fishery Products 2008

Russia Fish and Fishery Products 2009

Vietnam Products of Animal & Plant origin 2011

China Animal feed ingredients – oil cakes 2011

Source: Department of Commerce

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The EIAs have also been authorised to issue various

types of certificates for consignments exported

such as Health, Authenticity, Non-Genetically

Modified Organism, etc.

Fees and Revenue Generation

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,

Schemes/ ActivitiesActual Fees Realized

till 31 Dec 2012

Inspection & certification

Fish & Fishery Products 1,750.43

Basmati Rice 201.34

Black Pepper 71.44

Egg products 95.88

Milk & Milk Products 117.41

Poultry 5.01

Honey 40.11

Chemical & Allied products 32.11

Engineering 41.31

Other Schemes 1,656.32

Total from Inspection 4,011.36

Certificate of Origin 4,213.41

Other Income 397.66

Total 8,622.43

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 2011-12 by the organization was to the tune of Rs.96.91crore. The revenue realized between April-Dec 2012 is Rs.86.22 crore. The break-up of actual fees realised under various schemes and activities during April-Oct 2012 is given in Table 8.19

Table 8.19Revenues (Rs.in lakh)

Source: Deptt. of Commerce

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Box 8.8

New Initiatives and ideas adopted by EIC

EIC has reportedly been endeavouring to reorient itself by taking up activities of interest to the •users, e.g. maintenance of an information centre with database on regulatory requirements of India’s trading partners; putting into place a system of certification covering both product and systems aspects with a view to facilitating exports; and providing training and technical assistance, not conflicting with independence of certification, to the trade and industry on international standards like ISO 9000, ISO 14000 and Food Safety Management Systems for overall up-gradation of their quality and quality assurance systems in line with international requirements.

EIC has launched a new scheme for e-health certification meant for fish and fishery products •meant for exports to EU. This is likely to enhance the objectivity and transparency in the entire certification procedure and make the process of post verification easier and efficient as well.

E–governance, transparency, speed of communication, traceability, accountability and providing •efficient services etc are of importance in today’s scenario. This requires computerization, computerized networks and an e-culture. Towards this end, activities relating to building hardware, software in different application, databases, e-connectivity, working towards a paperless office culture are being undertaken with constant up-gradation so as to be in tune with the latest developments. Specific examples of activities towards this initiative include computerization, networking with EIAs, building up databases on importing countries requirements, digitization activities etc.

In the WTO scenario, importing countries are imposing increasingly stringent regulatory •requirements. To meet these requirements, there is a need to (i) upgrade quality of the Indian products to meet these increasingly stringent requirements and (ii) upgrade conformity assessment infrastructure in line with the international requirements of testing, inspection and certification to be able to demonstrate compliance to the regulatory norms and requirements of the importing country.

In such scenario and as specified in the WTO/SPS and TBT Agreements, there is a provision for recognition of the exporting country’s systems for ensuring compliance to meet the importing country requirements instead of checking each and every consignment imported. To take advantage of this provision, re-course is being taken to initiate Mutual Recognition/Equivalence Agreements for recognition of EIC’s certification of various products. This requires up-gradation in terms of equipment, systems and manpower for testing, inspection, certification etc. Importing countries before providing recognition, assess and audit these aspects. Many of the policy initiatives relating to EIC are tailored towards the above. For example, up-gradation of laboratories, implementation of Residue Monitoring Plans, training of certifying officials as well as exporters, development of Agreements with trading partners, image building of the organization etc.

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Box 8.10 Major International and National events

Box 8.9 Major achievements during the year

EIA Delhi has been accredited under National Programme for Organic Production (NPOP) of •the Government of India by National Accreditation Body (NAB). EIA-Delhi has been granted with accreditation number NPOP/NAB/0024 with validly up to 31 May 2015. Currently, EIA Delhi is having projects of organic certification in Basmati Rice and orchards in and around North & Central India.

A state-of-art new laboratory facilities was under operation at 101, Southend Conclave, 1582, •Rajdanga Main Road, Kolkataunder the aegis of Export Inspection Agency-Kolkata. The newly developed state of art laboratory will be applying for accreditation for both chemical & biological testing’s. Laboratory currently undertakes physical, microbiological & chemical analysis of the samples drawn from export consignments as well as import samples received from FSSAI and samples received from Royal Government of Bhutan.

EIC/EIA has been allotted a plot of land at plot no 70 Sector 20 A Faridabad where EIC/EIA Delhi •are seeking for grant of budgetary support of Rs 24.94 crores based on preliminary estimates for construction of Administrative complex; Lab facility and Training centre for Export Inspection Council of India and Agency at Delhi under phase one.

Various sub offices were shifted to new location thereby granting easier access to exporters, these offices included Goa; Indore; Ahmedabad; Moradabad, thereby granting easier access to exporters, these offices included Goa; Indore; Ahmedabad; Moradabad.

EIC had been actively involved in events of National and International importance in the year 2012-13. at various levels. As a part of capability building EIC has deputed officers in various programs

A: BTSF training programs through National Contact Point

Participation of one officer each in the Training program on Feed and feed rules at Budapest, Hungary •from 24-27 April 2012, Copenhagen from May 07-11, 2012 and Rome from 04-07 December 2012

Participation in Training program on Microbiology for laboratory personnel from 4-15th June 2012 •in Madrid

Participation in training program on analysis of residues of veterinary medicinal products from 18-•29th march 2013 in Nantes.

Participation of two officers in Training program on Food Contact Material from 17-19th September •2012 at Lithuania.

B Other training and Workshops

Participation in OLAF/ASEAN Conference on Customs antifraud Cooperation, Bangkok, Thailand •during 25-27 April, 2012.

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Participation in workshop on Testing methodology for vibrio organized by FAO in association with •International life Sciences Institute (ILSI),South Asia from 9-23 November 2012 at Singapore

Participation in Regional SPS workshop for Asia & Pacific Countries” organized by World Trade •Organization (WTO) in Chinese Taipei during 6-9 November, 2012.

C National Programs

Participation in 47th Annual Rice Group Meeting in Directorate of Rice Research in Hyderabad form •6-9th April 2012.

Participation in Negotiators Training programme on Biodiversity Authority from 18-19th May 2012 •at New Delhi.

Participation in WTO National Seminar on SPS Agreement at IIFT, New Delhi during 28-30 August, •2012.

Participation in one day brain storming session on perspective plan and strategies development of •fisheries and aquaculture products organized by National Fisheries development Board on 3rd Agust 2012 at IARI Pusa.

Participation in Technical Workshop on Risk Based Approaches for Food Safety Management organized •by ILSI during September 26-27, 2012 at New Delhi.

Participation in India National Dialogue on Managing Trade Dispute” at IIFT, New Delhi on 30th •November, 2012.

D. Participation as part of Indian Delegation

‘International Origin Expert Conference’ on the theme of “Harmonization of optimized FTA Utilization •and Effective Origin Administration” during May 22-23, 2012 in Seoul, Korea.

Participation in the 6th EU- India Meeting of on Agriculture & Marine Products from 19th-20th June •2012 at Brussels, Belgium.

Meeting of CCFICS Physical Working Group on the proposed Draft Principles and Guidelines for •National Food Control Systems held during 9-12 July, 2012 at Grange, Ireland.

Meet with Japanese Health Authorities officials regarding the rejections due to ethoxyquin from 3-7 •September 2012.

Sixth meeting of the Conference of the Parties serving as the meeting of the parties to the Cartagena •protocol on Biosafety at Hyderabad from October 1-5, 2012.

32nd Session of Codex Committee on Fish and Fishery Products at Bali, Indonesia during 1-5 October, 2012.•

28th ISO CASCO plenary meeting and open day at Bogota, Colombia from 10-12 October 2012.•

E. Visit of Foreign Delegation to India

A delegation from Office of Import Food Safety, Inspection and Food Safety Division, Department •of Food safety, Ministry of Health, Labour and Welfare (MHLW) visited India from 29.07.2012 to 4.08.2012. The delegation was successfully managed by EIC to facilitate smooth imports of food commodities from India as an official competent authority.

Meeting with Canadian Food Inspection Agency (CFIA) delegation on 21st November, 2012 at Hotel •The Royal Plaza, New Delhi for smooth trade from India.

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v) Footwear Design & Development Institute (FDDI)

Footwear Design & Development Institute (FDDI), working under the aegis of the Ministry of Commerce & Industry, Government of India is rated amongst the premier leather products, design, fashion and retail institution in the world playing a pioneering role in enhancing the global competency and performance of the Indian Industries.

The Institute, having pan-India presence with seven well designed campuses at Noida, Fursatganj,

Chennai, Kolkata, Rohtak, Chhindwara & Jodhpur is providing trained human resource to the industry.

The major activities carried out by FDDI, during the year

'Interactive Session' of FDDI, Fursatganj students

Smt. Sonia Gandhi, Hon'ble Member of Parliament and Chairperson UPA along with Mr. Anand Sharma, Hon'ble Union Minister of Commerce, Industry & Textiles visited FDDI, Fursatganj on 7th November 2012.

Mr. Mukhtarul Amin, Chairman, FDDI briefing about student’s product to Smt. Sonia Gandhi, Member of Parliament and Chairperson UPA where Shri Anand Sharma, the Union Minister for Commerce, Industry & Textiles was also present

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Smt. Sonia Gandhi, Hon’ble Member of Parliament and Chairperson UPA along with Mr. Anand Sharma, Hon’ble Union Minister of Commerce, Industry & Textiles visited the pilot plant, computer centre, Design Studio, classroom, library etc. The students displayed their work in the form of a presentation. They also put up stalls displaying the footwear & leather art crafts. They also depicted the evolution of retail sector in India.

‘Foundation Stone’ of the ‘Footwear Design & Development Institute’ laid at Guna

The then Hon’ble Minister of State for Commerce and Industry, Government of India, Mr. Jyotiraditya M. Scindia laid the ‘Foundation Stone’ of the ‘Footwear Design & Development Institute’ (FDDI) at Guna, Madhya Pradesh on 28th July 2012

In order to provide a fillip to the Indian Footwear, Leather Products Industry and the emerging Retail Sector, the Department of Commerce, Ministry of Commerce & Industry, Government of India has approved the establishment of a full-fledged campus of FDDI at Guna in the State of Madhya Pradesh.

FDDI Guna campus will be equipped with most modern and high-end state of art infrastructure to ensure world class training environment and prepare the students to excel efficiently across the globe & provide gainful employment to the youth of the region by inducting them in Footwear & Leather Products Industry which is identified as one of the significant Industry in terms of growth, foreign exchange earnings and employment generation and thus, support the target of the Govt. to alleviate poverty and attain economic growth with qualitative jobs to the individuals.

‘Support to Artisan’ 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 Programme, FDDI trained more than 12000 artisans/ SME from Rae Bareli and neighbouring districts in the State of Uttar Pradesh, Jaipur, Alwar, Jodhpur and neighbouring districts in the State of Rajasthan and Patiala and neighbouring districts in the State of Punjab.

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

Revenue growth

FDDI has made significant progress in the last few years. The total revenue of the FDDI for the FY 2011-12 is Rs. 31.38 Crore which is nearly ten times of that of the earning in the year 2005 ( Rs. 3.19 Crore in 2005).

Gender initiatives undertaken

Implementation of 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) during 11th Five Year Plan. FDDI was also nominated as one of the main implementing agency for this job.

Hence, FDDI established three full-fledged Operator’s Training Centres at Agra, Kanpur & Rae Bareli having state-of-the art- machinery in cutting and closing operations.

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Mr. Jyotiraditya M. Scindia, the then Minister of State for Commerce & Industry, Government of India lighting the inaugural lamp during the ‘Foundation Stone’ Laying Ceremony of FDDI, Guna on 28th July, 2012

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S. No. Particular No. of Persons

1 No of persons trained 22028

2 No. of persons provided employment 18783

% age of Employment 85.26

Training Detail:

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‘Stitching Operator Course’ for female trainees

at Kanpur: FDDI conducted an exclusive training

programme in ‘Stitching Operator Course’ for

a batch of forty-eight female trainees at FDDI’s

Operator Training Center, Kanpur to bridge the skill

shortage in the leather industry which is posing

constraints for utilizing the full growth potential of

the leather cluster in Kanpur.

Besides helping the industries to hire skilled labour, the course also aims to empower the female trainees with the skills and confidence necessary to get a job in the footwear industry and in meeting their emergent needs & pave the way to self reliance.

All the female trainees belong to the weaker section of the society received the employment

S.N. Particular No. % age

1 Candidates trained from SC Category 10259 46.57

2 Candidates trained from ST Category 250 1.13

3 Candidates trained from OBC Category 6358 28.86

4 Candidates trained from Minority Community 2658 12.6

5 Female candidates trained 2953 13.40

Socio Economic Background of Trainee:

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offer prior to completion of the course from M/s.

Homera Tanning Industry, Jajmau, Kanpur.

Major achievements during the year

Increase in training capacity: The training

capacity in FDDI has increased eight- fold in last

6 years. Keeping the requirements of industry

in view, FDDI introduced many new academic

programs to cater all human resource needs of

industry. FDDI has expanded its training capacity

from mere 184 in the year 2005 to 2700 in the

academic year 2012-13. The capacity is to be

further increased to 5000 by the year 2013-14

with the full-fledged commencement of all the

campuses.

Testing and other support services:

FDDI’s International Testing Centers (ITC)

laboratories located at Noida as well as Chennai

are accredited by PFI, Germany for safety,

protective & occupational footwear for EN ISO

20344, 20345, 20346 & 20347 and Shoe and

Allied Trade Research Association (SATRA), UK

for fashion and casual footwear and committed

to give the best services to the companies

that are looking to optimize their spending on

testing.

The ITC of FDDI is the only laboratory in India

which has been ISO 17025 certified by Deutschen

Akkreditierungs Rat (DAR) of Germany and has

also been awarded the ISO 9001 and ISO 14001 by

Bureau Veritas.

New initiatives and ideas

Establishment of International Design Studio (IDS)

at FDDI Furstaganj Campus: FDDI has established

an International Design Studio at FDDI Furstaganj

campus to cater the critical need of Design and

Product Development support of the Footwear &

Leather Product Industry.

The IDS has been established with latest

(internationals standards) softwares, equipments

and machineries for Design Research, Development,

Trend and Fashion Forecasting along with high-

tech Product Development and Range building

facilities which includes equipments like stitching

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machines, computers equipped with applications, students have access to software including Adobe Photoshop, Adobe Illustrator, Adobe In design, Quark Express, Flash, Dreamweaver, and After Effects.

The Design labs give students an opportunity to acquire skills in digital painting and animation, and use of professional digital still and video cameras.

In short ‘IDS’ is enable to provide an international standards learning experience in the field of Footwear & Leather Goods Designing as per the industry standards, and provide the professional expertise manpower to the Industry.

Major national and international events:

Takeover of IISTEM by FDDI: As a re-structuring of International Institute of Saddlery Technology and Export Management (IISTEM), the committee set by the Minist ry of Commerce & Industry, Govt. of India had requested the Footwear Design & Development Institute (FDDI) to take over the IISTEM.

The Chairman of the Governing Council of FDDI, Mr. Mukhtarul Amin announced FDDI’s agreement to take over the campus of IISTEM and run it as FDDI-Banthar Centre in a meeting in Kanpur on July 16, 2012.

Seminars & workshops : To enhance the global competence of the Indian leather sector by bringing in International technology and trend and support the industry in critical areas of Design & Development, FDDI has conducted various international events, seminars and workshops this year in collaboration with ARS Sutoria.

To enhance the global competence of the Indian leather sector by bringing in International technology and trend and support the industry in critical areas of Design & Development, FDDI has conducted various international events, seminars and workshops this year in collaboration with ARS Sutoria.

International assignments

Several measures have been taken to position FDDI globally as a brand in Training and Consultancy and today the leading international institutions/organizations like ARS Sutoria (Milan), University of Applied Sciences- Pirmasens (Germany), PFI (Germany), SCAM (Italy), Gabor (Germany), Impactiva (China), Thomas Bata University (TBU), Czech Republic, Centre of Excellence for Leather & Leather Goods (COEL) of Bangladesh have been linked up with FDDI and many more are keen to continue with stronger relationships with FDDI in various developments and up-gradation process.

FDDI bagged the prestigious international consultancy project in Ethiopia of more than 3 million USD for the global benchmarking of Ethiopian Industry and technological up-gradation of Ethiopian leather industry and the similar assignment project was also taken in Botswana which is currently being executed by FDDI for the Local Enterprise Authority (LEA) at Botswana for the Skill Up-gradation of its staff and clients.

FDDI has signed a Memorandum of Understanding (MoU) with the Department of Trade & Industry (the DTI), Govt. of South Africa and Vaal University of Technology (VUT) South Africa for the training of staff and clients of Leather Industry of South Africa and the VUT.

Intermittently, FDDI has also provided consultancy to the neighbouring countries such as Vietnam, Sri Lanka, Bangladesh etc.

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.

On the request of Chhattisgarh State Minor Forest Produce (Trading & Development) Co-operative Federation Limited, under the Government of Chhattisgarh, the FDDI has developed casual

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walking shoes for ladies & gents who have to go to the forest for plucking of tendu leaves. The shoes designed, developed, tested & inspected by FDDI have been serving satisfactorily.

Academic programmes: FDDI conducts wide range of professional programmes in the area of Retail Management, Footwear Design, Technology, Management, Fashion Merchandising, Visual Merchandizing, Marketing, Creative Designing & CAD/CAM and Leather Goods & Accessories Design etc. thus, providing trained high-class professional, managers, fashion designers, technologists to keep pace with the growing demand of the industry.

Adhering to the long felt demand of the industry, the Institute has launched a new 5 year Integrated Programme in Business Management from the academic session 2012-13 with the objective to build and groom the students for acquiring managerial positions in manufacturing / services organization or entrepreneurial venture with good communication skills, business knowledge and socially evolved citizens on the one hand and to provide an intellectually sound & professionally skilled manpower to match the emerging global environment in the business and trade on the other hand.

Project implementation: The institute has successfully implemented all the projects assigned by the Ministry. All new campuses namely Kolkata, Chennai, Chhindwara and Rohtak have been made functional with the commencement of the academic programs. The efforts of the institute in the area were highly acclaimed by the Industries and the associations for the excellence in execution/implementation and the effective beneficial results in supporting the growth of the Industry and building the nation.

Placement record: This year again, FDDI has been able to achieve a 100% job placement record and the students were placed in their dream companies with the desired profile and expected package in

various renowned companies in major International Retail, Leather Goods & Footwear companies. The placement session witnessed the presence of not only leading domestic companies, but, also the global head-hunters offering plum placements to final-year candidates in retail, footwear, leather goods & accessories.

The Institute has witnessed the presence of major International brands in retail, footwear, leather goods & accessories. The placement have seen the onset of a lot of new companies also coming to FDDI like Clarks, BMW, Zara, Elle, Angels and Devil, Jubliant Foodworks, Khadims, Global homes solutions, Kiwi Shoes, Bags and Cart, Blues & Blues, Ferns & Petals, Victorian Heart, Fopping.com, EMB Biz labs were some of the companies that conducted campus interview for a number of posts and selected students through it.

v) Indian Diamond Institute (IDI)

With the objective of enhancing the quality, design and global competitiveness of the Indian jewellery, the Indian Diamond Institute was established as a society in 1978 with its office located at Surat. 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 authorized by the DGFT, MOC& I, as per Chapter 4 of FTP 2009-14 for certification/Grading of Diamonds of 0.25 Ct & above. Indian Diamond Institute has been accorded with recognition as a Scientific & Industrial Research Organizations (SIRO), by the Department of Scientific & Industrial Research, Ministry of Science & Technology, Government of India. It has been also recognized as Anchor Institute (Gem &

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Jewellery) by Industries Commissionerate, Govt. of Gujarat.

C. PUBLIC SECTOR CORPORATIONS

(i) Minerals and Metal Trading Corporation Limited (MMTC)

MMTC is widely recognized as India’s largest International Trading Company and the first Public Sector Undertaking to be awarded as “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, the company achieved a turnover of Rs.21,128 crores for the period ended on December, 2012. This performance works out to 39.46% of the proportionate MOU target of Rs.53,550 crores turnover set for first nine months of 2012-13.

In domestic segment, the company has shown an increase of 47% as compared to proportionate MOU targets. Net loss at Rs.73 crores* has shown a decrease of 230% over the proportionate MOU target of Net Profit of Rs.56 crores.

Table 8.20Financial performance for the half year 2012-13 (MMTC)

Rs. in Crores

TRADE PERFORMANCE

MOU2012-13

Prop. TargetApr- Dec.’12

ActualApr-Dec’12

Increase/(Decrease)

(%)

EXCELLENT RATING

EXCELLENT RATING

EXPORTS 3,500 2,625 1,477 (44)

IMPORTS 64,750 48,563 16,168 (67)

DOMESTIC 3,150 2,362 3,483 47

TOTAL TURNOVER 71,400 53,550 21,128 (61)

PROFIT BEFORE TAX 111 83 94 13

PROFIT AFTER TAX 75 56 (73)* (230)

NET PROFIT TO TURNOVER (%) 0.10 0.11 (0.34) (409)

*includes extra-ordinary items of Rs.132 crores (net of taxes)

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Computerisation & technology elevation

During this period, company’s information knowledge capabilities were further augmented through business intelligence tools for integrated performance management including analyzing & alerting, aiming at enhanced management controls/monitoring for operational excellence. Enhanced transparency, accuracy and reliability through e-payments, e-tendering & e-auction were successfully continued.

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 April-Sept 2012, it has achieved a business turnover of US$ 391 million. MTPL has “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

Neelachal Ispat Nigam Ltd. (NINL)

Neelachal Ispat Nigam Ltd., a company promoted by MMTC, IPICOL, NMDC, MECON etc., has set up an iron & steel plant of 1.1 million tonnes capacity, coke oven of 0.8 million tonne capacity alongwith a by-product plant, captive power plant of 62.50 MW etc. with total expenditure of nearly Rs.2,000 crore at Kalinganagar, District Jajpur, Orissa.

The total turnover and Net profit/(loss) [provisional] of the company for the period April-October 2012 is Rs.842 crore and Rs. (32) crore respectively. The

phase II of the project (Steel making facilities) with an estimated cost of Rs.1,855 crores is on the verge of completion and is likely to commence trial production shortly.

Other projects

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 - Indian Commodity Exchange (ICEX),United Stock Exchange of India Ltd., Medallion manufacturing unit (MMTC-Pamp India Private Limited), Retailing Jewellery (MMTC-Gitanjali Pvt. Ltd), Iron ore berth at Ennore Port - M/s.SICAL Iron Ore Terminals Limited (SIOTL).,TM Mining Ltd (TMML) for exploration and development of mines for minerals, ferrous and non-ferrous ores, precious metals, diamonds and coal etc. both in India and abroad, Free trade and warehousing zones at Haldia and Kandla, Exploration for Coal mining at Gomia in Jharkhand State.

Ores & Minerals

MMTC’s export of ores and minerals were estimated at Rs.528 Crores during 2012-13 (April - Sept) registering a growth of 18.14 per cent over the same period of the previous year.

Human resource

Total manpower of the company as on 30th November, 2012 was 1660 (611 officers and 1049 staff) comprising of 314 women, and 574 SC/ST/OBC/PWD employees.

Welfare Measures in respect of SC/ST/ PWD

There is a Liaison Officer at each RO/CO 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.

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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

CSR activities were focused on health, education, empowerment of women, environmental sustainability and creation of infrastructure on which Rs.3.45 crores was spent during the year.

Gender initiatives undertaken

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

Information on new initiatives and ideas adopted

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.

Box 8.11Major achievements of MMTC during the year

1. BT Star PSU Excellence Award 2012 - for contribution towards CSR - by Bureaucracy Today.

2. Dun & Bradstreet PSU Award 2012 - in Trading Sector - by Dun & Bradstreet - held on 29 May 2012.

3. Dun & Bradstreet-Rolta Corporate Award 2011 - in Trading Sector - by Dun & Bradstreet & Rolta.

4. Rajbhasha Award consecutively 3rd time in recognition of commendable work done in the field of our national language.

5. EEPC Silver Trophy for being Top Exporter of the Year 2012-11 in Medium Enterprise Group.

Box 8.12Major national and International events

(a) Music in the Park:

On the occasion of Golden Jubilee of the Company, "Music in the Park" concert was held on 5th & 6th November, 2012, in New Delhi where noted artistes participated.

(b) Made in India:

A 'Made in India' Show organized by the Federation of Indian Chambers of Commerce and Industry (FICCI) in Lahore, Pakistan during 11-13th February 2012, the first ever such trade exhibition from India. The Indian delegation was led by Hon'ble Minister for Commerce & Industry, Govt of India.

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

STC, set up on 18th May 1956, 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.) into India and contributed significantly in developing exports of a large number of items from India. STC is today able to structure and execute trade deals of any magnitude, as per the specific requirement of its customers.

The overall performance of STC during 2010-11, 2011-12 and April-Dec. 2012 vis-a-vis figures for April-Dec. 2011 and estimates for 2012-13 is at table 8.21

Performance: 2011-12

Total Turnover

The Corporation achieved the highest ever turnover of Rs. 30,444 crore during 2011-12 thereby exceeding the previous year’s turnover by 52%.

Exports

During 2011-12, the Corporation made exports worth Rs. 344 crore with iron ore being the single largest export item with an all-time high sale of Rs. 195 crore. Other major items handled were rice, castor oil, maize and molasses.

Imports

The Corporation attained an all time high import turnover of Rs. 29961 crore during 2011-12.

---April - December---

2010-11 2011-12 Provisional 2012-13Actuals Actuals 2012 2011 Estimates

Exports 492 344 687 257 1400Imports 18938 29961 13081 24409 16500Domestic 555 139 70 107 100Total Turnover 19985 30444 13838 24772 18000Profit Before Tax 80 18 10 21 14

Bullion continued to occupy the foremost position on import front with highest ever sales of Rs. 17905 crore as compared to Rs. 14964 crore in the previous year. During 2011-12, the Corporation continued to arrange supplies of imported thermal coal to NTPC, which resulted in sales worth Rs. 9885 crore. It also imported 5.6 lakh MT of urea valuing Rs. 1393 crore on the directives of the GOI. The Corporation imported edible oils both on its own account as well as for the state governments for distribution to the weaker section under Public Distribution System (PDS) resulting in overall sales of Rs. 484 crore. The Corporation also imported and sold pulses worth Rs. 205 crore on behalf of Govt. of India.

Domestic sales

During 2011-12, the Corporation effected domestic sales worth Rs. 139 crore contributed mainly by oils, seeds, jute goods, coal, pulses and tea. During the year, the Corporation undertook, though on a modest scale, stock and sale of soyabean, mustard seeds and desi chana and also opened retail outlets for sale of own brand “STC Tea” in southern India in 250 gms packs.

Profitability

During 2011-12, STC earned a Profit Before Tax (PBT) of Rs. 18 crore. The profitability of the Corporation remained under strain due to thin trading margins, high interest costs and provisioning / write offs in certain cases.

Table 8.21Overall performance of STC

(Rs. in Crores)

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Dividend

The Corporation paid a dividend of 20% of its paid-up equity capital for the year 2011-12.

Performance : April – December 2012

Total Turnover

The Corporation achieved a turnover of Rs. 13838 crore during Apr.-Dec.’ 2012 as against Rs. 24773 crore in April-Dec.’11. The decline is mainly due to lower imports of coal and bullion.

Exports

Total exports of the Corporation at Rs. 687 crore during Apr.-Dec.’12 were over 2.5 times the exports achieved during corresponding period of previous year. During the period, the Corporation undertook exports of wheat out of Central Pool stocks as one of the nominated agencies of the Govt. of India. Total contracting of wheat stood at 6 Lakh MT as on 31.12.2012 against which shipments worth Rs. 650 crore have already been made. The Corporation also exported rice amounting to Rs. 30 crore and manufactured products worth Rs. 6 crore. Total exports of the Corporation would have been higher but for high export duty and restrictions on mining and transportation of iron ore imposed by various state governments resulting in no exports of iron ore during the current financial year as against Rs. 114 crore in Apr-Dec.’11.

Imports

The import turnover of the Corporation for the period Apr. – Dec.’ 12 amounted to Rs. 13081 crore. Lower import turnover is mainly attributable to reduced imports of bullion and coal. These two items contributed Rs. 22311 crore in the import turnover during the previous year which fell to Rs. 7669 crore during the current year – a decline of over Rs. 14600 crore. Coal imports decreased by Rs. 7962 crore and bullion imports by Rs. 6680 crore.

Bullion continued to be the single largest item of import with sales valuing Rs. 7533 crore. However,

the volume of bullion business was significantly lower as compared to sales valuing Rs. 14213 crore made during Apr.-Dec.’11 due to increase in customs duty on gold and silver leading to reduction in import demand. The Corporation continued to import urea on behalf of the Govt. and arranged imports amounting to Rs. 4964 crore during Apr.-Dec.’12 as against imports worth Rs. 1394 crore during the same period last year.

Import of coal was drastically lower at Rs. 136 crore due to a change in the system for import of coal by NTPC whereby its power plants are now individually importing coal to meet their requirements and inability of the Corporation to get a share of non-NTPC coal business. During Apr.-Dec.’11, the Corporation had imported about Rs. 8100 crore worth of coal for NTPC. Edible oils worth Rs. 367 crore were imported during Apr.-Dec.’12 as against Rs. 369 crore during the same period last year. Pulses and manganese ore worth Rs. 26 crore and Rs. 25 crore respectively were also imported during the period April – December ’12.

Domestic Sales

During Apr.-Dec.’12, domestic sales by the Corporation amounted to Rs. 70 crore mainly accounted for by oilseed/extractions (Rs. 30 crore), jute goods (Rs. 12 crore) and pulses (Rs. 25 crore).

Profitability

During the period under review, STC earned a Profit Before Tax of Rs. 10 crore.

Notable Achievements during 2012-13

All time high urea imports – full year turnover •estimated at Rs. 5000 crore (Previous year – Rs. 1400 crore)

Quantum jump in agricultural exports- full •year turnover estimated at Rs.1400 crore (Previous year – Rs. 150 crore)

Turnover excluding bullion and coal estimated •at Rs.7300 crore for full year – about 2.75

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times the corresponding figure of Rs.2650 crore in the previous year

iii) Spices Trading Corporation Limited (STCL)

STCL was originally incorporated in October 1982 as “Cardamom Trading Corporation Limited”, a Private Limited Company under The Companies Act, 1956. The Company obtained a fresh certificate of incorporation under the name of SPICES TRADING CORPORATION LIMITED with effect from August 1987 in order to widen its marketing base from Cardamom to other range of spices.

Thereafter, STCL became a subsidiary of The State Trading Corporation of India Ltd., with effect from 14.09.1999 and shares held by the Ministry of Commerce were transferred to the State Trading Corporation of India Ltd.

With diversified trading activities, the company’s name has been further amended from Spices Trading Corporation 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 make all out efforts for recovery of the •amount due from Business Associates.

To pursue the ongoing recovery process •through legal recourse.

To obtain minimum Bank finance, so as to •carry out core business in spices, agricultural commodities, fertilizers and pesticides to earn minimum operational costs.

To utilize chilli and other spice processing •facilities available with the company for value addition and to market both in domestic and international markets.

To develop core competitiveness in •chilli and other spices and explore 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 support, protect, maintain, increase and •promote production of Indian spices and other agricultural commodities as well as their Sale/Export.

To fulfill 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 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.

Share capital

The Share Capital of the company as laid down in its amended Memorandum of Association is Rs.5,00,00,000/- (Rupees Five Crore), divided into 5,00,000/- equity shares of Rs.100/- each (Five Lakh equity shares of Rupees One hundred each).

The Paid up Share Capital of the Company as on today is Rs.1,50,00,000/-(Rupees one crore fifty lakh) comprising of 1,50,000 equity shares.

Branches

The Head office of the Company is at Bangalore. Branches are located at Madikeri, Saklespur and Byadagi in Karnataka, Kochi and Kumily in Kerala, Chennai, Bodinayakanur and Tuticorin in Tamilnadu, Mumbai in Maharashtra, Chhindwara in Madhya Pradesh, Kolkata and Malda in West Bengal, for promoting its trade and for rendering services to growers.

Human resource

The Company had 53 regular employees on its roll as on 30.11.2012. The Company is continuing

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with its efforts to ensure that the employees are computer literate. The employees who are not Hindi literate are deputed for training classes in Hindi.

Achievements

During the Financial year 2011-12, the company has achieved a turnover of Rs.127.77 crore. The Company is estimated to achieve a turnover of Rs. 130.00 crore during 2012-13.

Service to farmers

a) The presence of STCL in plantation areas in the State of Karnataka and distribution of fertilizers, agro chemicals and other inputs manufactured by reputed companies by STCL at competitive prices ensured that the farmers interests’ are not exploited by middlemen and traders. The timely supply of fertilizers has helped farmers in carrying out fertilizer applications/operations on time.

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

c) STCL has established a Chilli Processing Plant at Byadagi in Haveri District of Karnataka and a Steam Sterilization Unit at Chhindwara, Madhya Pradesh. These projects help the growers to get remunerative prices through value addition of their produce.

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

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.

Table 8. 22The overall performance of the Corporation since 2010-11

Rs. crore

ITEMS 2010-11 2011-122012-13 MOU Targets

2012-13Achievement (Provisional)

upto 31.12.2012

2013-14 MOU

Targets(Projected)

Sales Turnover 9,969.94 11,026.27 11,500.00 *7,800.00 12,000.00

Income 146.40 159.73 170.80 110.00 180.35

Expenditure 39.84 41.20 51.40 38.21 55.35

Profit before Tax 106.56 118.53 119.40 71.79 125.00

Profit after tax 70.92 79.55 77.40 45.79 83.00

Dividend & Corporate tax 17.43 17.43 18.00 12.00 20.00

Equity 20.00 20.00 20.00 20.00 60.00

Reserves 265.51 327.63 377.48 361.42 405.63

Net Worth 285.51 347.63 397.48 381.42 465.63

* Includes Bullion – Rs.360.70 crore.

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During the year 2011-12, PEC achieved turnover of Rs.11026.27 crore as compared to Rs.9969.94 crore in the previous year, an increase of 11%. Consequently, PBT increased to Rs.118.53 crore from Rs.106.56 crore, an increase of 11%. EPS (both basic and diluted) during the year increased

Item 2010-11 2011-12 2012-13Provisional

Upto 31.12.2012)

Agro commodities 553.81 622.18 1583.00

Minerals (Iron Ore) 552.87 391.55 55.00

Engineering & Manufactured Goods 26.42 20.80 35.00

Others 3.15 2.12 2.00

T O T A L 1136.25 1036.65 1675.00

Table 8. 23 Item-wise composition of exports

Rs. crore

During the year, PEC continued its efforts in maintaining its potential export markets such as Bhutan, Nepal, Bangladesh, Srilanka, Mauritius, Ethiopia, Kenya, Liberia, Mauritania etc. Agro business continues to be a key contributor to the

to Rs.398 as compared to Rs.355 in the previous year.

Exports

The item-wise composition of exports since 2010-11 is given in Table 8.23

growth of the corporation. PEC exported rice, wheat and soya meal during the year. Other major exports were iron ore fines to China, home appliances & spares and medical equipment to various nations.

Item 2010-11 2011-12 2012-13

Provisionalupto 31.12.2012

Agro Commodities 2530.25 1775.13 1325.00

Industrial Raw material 3987.97 5242.02 3195.00

Bullion (Including Diamond) 1311.26 971.35 395.00

Engineering & Manufactured Goods 69.16 149.08 105.00

Others 8.16 53.72 30.00

T O T A L 7906.80 8191.30 5050.00

Table 8. 24The item-wise composition of imports since 2010-11

Rs. crore

Imports

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During the year 2011-12, PEC achieved import turnover of Rs.8191.30 crore and Bullion import aggregate to Rs.971.35 crore. PEC undertook bulk import of coal, manganese ore, industrial chemicals, diamond, etc. during the year. Agricultural commodities like edible oil, pulses, jute were also imported during the year.

Domestic Trade

Domestic sales during the year almost doubled to Rs.1798.32 crore from Rs. 926.89 crore in the previous year. The domestic sales include coal, steel, castor seeds, paddy, edible oil, cotton yarn, defence stores and other miscellaneous items.

Dividend

During the year 2011-12, PEC has paid dividend and tax thereon of Rs. 17.43 crore at the rate of 75 % on the share capital of Rs 20 crore.

Memorandum of Understanding

PEC received during the year Merit Certificate for excellence in the achievement of MOU for the year 2009-10.

MOU rating for 2011-12 is “Excellent”. MOU for the year 2012-13 has been signed with the Ministry of Commerce & Industry.

Human Resources

PEC draws its strength from its Human Resources which is the driving force of the organization. The Company has a high calibre, multifunctional team of 205 employees as on 31.12.2012. PEC has built vibrant team of highly qualified professionals and fresh graduates with professional background.

v) India Trade Promotion Organisation (ITPO)

ITPO is the premier trade promotion agency of India and provides a broad spectrum of services to trade and industry. The main corporate objectives of ITPO are:

To promote external and domestic trade of •India in cost-effective manner by organizing and participating in international trade fairs in India and abroad; organizing buyer-seller meets and contact promotion programmes abroad; conducting overseas market surveys, exchanging and coordinating visits of business delegations, and undertaking need-based research to facilitate trade in specific sectors/markets;

To support and assist small and medium •enterprises to access markets – both in India and abroad;

Data collection for benefit of exhibitors and •buyers;

To disseminate trade information and facilitate •E-commerce/trade;

To develop quality physical infrastructure, •services and management so as to enable holding of trade promotion events such as conventions and trade exhibitions of international standards; and

To enlist the involvement and support of the •State Governments, other government trade promotion agencies, trade and industry associations in the promotion of India’s external and domestic 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.

Financial Highlights

During 2012-13, ITPO’s total income would be Rs. 301.50 crore (provisional) as compared to Rs. 373.79 crore in 2011-12 while the total expenditure is anticipated at Rs.191.50 crore (provisional) as against Rs. 190.76 crore incurred in 2011-12. ITPO is anticipating a surplus of Rs.

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110.00 crore (provisional) during the year 2012-13 as compared to actual surplus of Rs. 183.03 crore in 2011-12.

Fairs in India

India Trade Promotion Organisation (ITPO) organized specialized events during 2012-13. During the period from 1.4.2012 to 31.12.2012, ITPO organized India International Leather Fair, Pragati Maidan, New Delhi; Aahar- the International Food Fair, Chennai; 18th Delhi Book Fair, Pragati Maidan, New Delhi; 14th Stationery Fair, Pragati Maidan, New Delhi; 15th India International Security Expo, Pragati Maidan, New Delhi; 32nd edition of India International Trade Fair (IITF-2012). Other regular events of ITPO namely India International Leather Fair at Chennai; International Leather Goods Fair at Kolkata; Nakshatra, New Delhi, Aahar – the International Food & Hospitality Fair, Pragati Maidan, New Delhi, etc., are scheduled to be held during the period January to March 2013.

Lifestyle Pakistan

ITPO successfully hosted “Lifestyle Pakistan” exhibition at Pragati Maidan from April 10-15, 2012. The event was organised by Trade Development Authority of Pakistan (TDAP) and supported by Department of Commerce, Govt. of India and ITPO. The event was a huge success and attracted a good number of business visitors and general public. The event was attended by Shri Anand Sharma, Hon’ble Minister of Commerce & Industry and Textiles, Govt. of India.

India International Leather Fair – Delhi

The 2nd edition of India International Leather Fair (IILF), Delhi 2012 was organized at Pragati Maidan, New Delhi from July 5-7, 2012.

The fair was inaugurated by Shri S.R. Rao, •Commerce Secretary, Government of India.

CLE, CLRI, ISF, IFCOMA and IFLMEA were the •co-organizers of the Fair.

A total number of 128 companies participated •in the Fair including 40 from overseas, mainly from Italy, China, Taiwan and Singapore.

Shri S.R. Rao, Commerce Secretary inaugurating the India International Leather Fair at Delhi

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Aahar-The International Food Fair 2012, Chennai

Aahar, the International Food Fair-2012 was •organized in Chennai from August 23-25, 2012.

ITPO & TNTPO were the co-organizers and •supported by MoFPI, APEDA, NSIC, SIHRA, ARCHII, IFCA/SICA AND HOTREMAI.

The fair was inaugurated by Mrs. M.P. Nirmala, •Secretary (Food Supplies), Government of Tamil Nadu.

A total number of 119 exhibitors participated •in an area of 1799 sq. mtrs.

18th Delhi Book Fair, New Delhi

The 18th Delhi Book Fair 2012 was organized •by ITPO from September 1-9, 2012 at Pragati Maidan, New Delhi.

The Federation of Indian Publishers (FIP) was •the co-organizer of this event.

Hon’ble Lt. Governor of Delhi, Shri Tejender •Khanna inaugurated the event.

The net area sold to 230 participants was •5355 sq. mtrs.

A number of seminars were conducted during •the period of the fair.

Four foreign countries namely USA, UK, China •and Pakistan also participated in the fair.

The theme for the year was “eBooks”.•

Stationery Fair

Concurrent to Delhi Book Fair ITPO also •organized 14th Stationery Fair.

Over 38 companies participated in this twin •fair.

15th International Security Expo

ITPO organized 15th edition of India •International Security Expo, Pragati Maidan, New Delhi (September 13-16, 2012)

The fair was inaugurated by Mrs. Rita Menon, •CMD, ITPO.

65 companies displayed their products •including Home land security, disaster management & NBC equipment, radio communication system etc.

Foreign delegates and visitors from 25 •countries visited the event.

As many as 3573 business visitors were •registered for their visits to the fair.

National Level Exhibition and Project Competition

ITPO entered into a Memorandum of Understanding with the Department of Science & Technology, Government of India to undertake the organisation of its annual event called National Level Exhibition and Project Competitions under the INSPIRE Scheme.

The event was held during October 21-23, 2012.

According to the MoU, ITPO provided complete •event management assistance on turn-key basis including preparation of layout, creatives, printing and ancillary activities including arrangement for receiving the students, various facilities for them and construction and decoration of halls 8, 9, 10, 11, 12 & 12A.

The exhibition was inaugurated by Dr. Ashwani •Kumar, the Union Minister of State for Science & Technology.

As many as 1100 students from all over India •participated in the event with their models.

Awards were given away by Shri Vyalar Ravi, •the Hon’ble Union Minister of Science & Technology.

32nd India International Trade Fair 2012

32nd edition of ITPO’s popular annual event, •the India International Trade Fair (IITF) was organized in Pragati Maidan, New Delhi from November 14 to 27, 2012 (First five days were exclusively for business visitors).

The fair was inaugurated by Shri Pranab •Mukherjee, Hon’ble President of India.

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The Theme of the Fair was -“Skilling India”.•

Uttarakhand was the Partner State.•

Andaman & Nicobar Islands were the Focus •States.

Online allotment of space to domestic •exhibitors was streamlined for better transparency.

Space rent payment by NEFT and RTGS was •encouraged.

To facilitate the visit of overseas delegates, •exclusive International Business Lounge was operated near Gate No. 7, Pragati Maidan. The facilities provided at International Business Lounge included registration of foreign delegates, foreign exchange counter, Cyber Café.

For convenience of the visitors a Round •Robin Bus Service and Three Hop-on-Hop-off (HOHO) Low floor buses for plying on Round Robin Route were operated.

Protocol was shifted to Gate No. 1 so as to •decongest Mathura Road.

Elaborate arrangements were made for safety •and security of visitors, which included X-Ray baggage scanners at all entry points, explosive

detectors for the anti-sabotage check, enhanced number of CCTV, observation towers, Walkie- talkie sets and inverted mirrors, flap-barriers to regulate entry with bar coded badges, tickets, fire-fighting systems inside all halls as per the requirement of Delhi Fire Service, emergency lights in case of sudden power failure, arrangements of standby generators and barrier-free access to the halls.

Park & ride facility was available for the •visitors.

Over 6000 exhibitors from India and abroad •took part in the event as detailed below:-

Domestic Participants in IITF 2012

32 States and Union Territories, 38 Central government Ministries/ Departments, Public Sector companies, etc., participated in the fair.

Foreign Participants in IITF 2012

About 414 Overseas Exhibitors from 26 countries took part in the event.

12 countries participated at country level i.e., Afghanistan, Bangladesh, Belarus, China, Cuba, Iran, Pakistan, Papua New Guinea, South Africa, Sri Lanka, Tanzania, Thailand.

Shri Pranab Mukherjee, the President of India inaugurating the 32nd India International Trade Fair 2012

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The Union Minister for Commerce, Industry and Textile Shri Anand Sharma at the inaugural ceremony of the 32nd India International Trade Fair 2012

Box: 8.13 New Initiatives in IITF 2012

The allotment of space to private sector companies was done through computer software. Potential •exhibitors had to apply online for allotment of space and were encouraged to send booking amount and participation fee through NEFT/RTGS.

Locations were divided into A, B and C categories. The objective was to give prime location to good •companies.

The display profile was restricted to the product groups identified for each hall.•

Hall No. 6 and 18 were kept for foreign and government participation.•

Mobile Application: Key information on IITF, as also floor-plans of all halls, details of exhibitors was •available on Blackberry, Android, Google play and i-phones.

New Product Launch: Two slots (11.00 a.m.-1.00 p.m./3.00 p.m.-5.00 p.m.) were earmarked in Hall •No. 8 for new product launches, at a nominal fee of Rs. 50,000/slot.

Four new products (3 by M/s Ambrane and 1 by M/s GXT Green) were launched.•

This year, for the first time, ITPO introduced the Cuisine of the State Awards in IITF. In this •category, Maharashtra bagged the Gold Medal, Kerala won the Silver, while Uttarakhand received the Commendation and special appraisal certificates were given to Karnataka and West Bengal. Mementos and Certificates were also presented to the Partner and Focus countries as well as Partner and Focus States.

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India-ASEAN Business Trade Fair (IABF)

2nd India-ASEAN Business Trade Fair (IABF) was successfully organised in Pragati Maidan from December 18-20, 2012 by Department of Commerce, Govt. of India with the support of FICCI and ITPO. The event was attended by Trade Ministers of a number of ASEAN countries along with Shri Anand Sharma, Hon’ble Minister of Commerce & Industry and Textiles, Govt. of India.

Fairs Abroad

Overseas fairs during April-December, 2012

During the year 2012-13, ITPO proposes to •organize participation in 24 overseas trade fairs including two mini India show in Osaka, Japan. Out of 24 events, ITPO has organized participation of 19 events from April-December, 2012.

Out of 19 events, 5 are in Europe, 6 in Africa & •Middle East region, 4 in LAC/NAFTA, 2 in Asia, 1 in CIS region and 1 in Australia. Further, out of total 19 events, 6 were General Fairs, 13 were specialized Fairs including 2 exclusive Mini India Shows.

Proposed overseas fairs during 2013-14

During 2013-14, ITPO proposes to organize 36 overseas trade fairs including one India Show and two Mini India Shows.

Brand India Show

India Garment Fair & India Home Furnishing Fair 2012

During the year, two exclusive Indian •commodity shows were organized in Japan in the month of July, 2012 i.e. the 33rd India Garment Fair and 23rd India Home Furnishing Fair 2012.

The shows for Home Furnishings and Garments •being organized annually for the last several years are well established and have become major sourcing avenues for these products.

The simultaneous organization of the shows •for furnishing and garments during 2012 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 $ 28.14 million and were attended by 2057 business visitors.

Participation in overseas events as “Guest/Partner Country”

ITPO organized India’s participation in 2 overseas events i.e. Muba, Basel (Switzerland) in April 2012 as “Guest Country” and in Africa’s Big S e v e n /SAITEX, Johannesburg (South Africa) in July 2012 as “Partner Country”.

Trade Delegations

35 trade delegations visited India Trade Promotion Organisation from April 2012 till December 31, 2012. These included a 13 member delegation from The Export Promotion Council of Kenya, a 2 member delegation from the Hong Kong Trade Development Council, a two member delegation from Japan External trade Delegation and 3 member delegation from Messe Frankfurt visited ITPO and were given an introduction of ITPO and its trade promotion activities and exploring possibilities of collaborating in trade development activities for furtherance of bilateral trade. 31 trade delegations visited the India International Trade Fair, 2012.

Membership

ITPO provided a package of services to export worthy units which are enrolled as Members. These services include trade enquiries received from Indian Missions abroad, market reports, details of importers and arranging meetings with visiting delegations during Trade Fairs & Exhibitions organized by ITPO. This year, till December 2012 about 315 trade enquiries received from Indian Missions abroad were disseminated among the members through Trade intelligence Bulletin

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enabling them to explore business opportunities with the overseas counterparts. In addition, trade information related to overseas tenders and trade fairs & exhibitions organized by ITPO and overseas agencies are also published in the Indian Export Bulletin.

Networking with TPOs

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. The 25th ATPF CEO Meet, held at Bangkok Thailand from April 18-20, 2012 was attended by CMD and other senior officials of ITPO. ITPO was also represented by senior officials at the 21st Working level Meeting (WLM) in Fukuoka, Japan from December 10-12, 2012. The 26th ATPF CEO Meeting is being hosted by ITPO in Agra, India, from March 5-7, 2013.

Export Potential Seminars

19 seminars were organised during IITF 2012 in association with FICCI & State Governments like Government of Bihar, West Bengal, Uttarakhand, Department of Science & Technology, NSIC, etc. Some of the seminars organized by FICCI were (i) Skill for All : For the people, by the people; ii) Workshop I on ‘Contact Creation for the Media & Entertainment’ and Workshop II on ‘Opportunities in the Food Processing Industry’. Department of Industries, Govt. of Bihar organized a Seminar on Investment & Business Opportunities in Bihar. Govt. of West Bengal organized Seminar on Business Opportunities in West Bengal and Uttarakhand organized Seminar on Investment & Business Opportunities in Uttarakhand.

Computerisation

Knowledge Management System – A Section •on Knowledge Management System has been created on ITPO’s website and this Section is being updated regularly.

IT Infrastructure in ITPO - The present IT •infrastructure in ITPO includes about 350 desktop computers, 10 servers, 20 work-stations, attached peripherals and supporting application software which are operational in the networking environment.

Mobile Application for IITF’2012 – A mobile •application was developed for Smart Phones/Tablets to view information and updates about IITF’2012. The mobile application was developed for various platforms such as, iPhone/iPad, Android and a compatible website (m.iitf.in) was also created for viewing the IITF’2012 details on web/internet enabled phones. The application contains the information on IITF, exhibitors, floor plans, factsheets, facilities, safety & security etc.

Development & Maintenance of Software •Modules for Online Space Booking and Deposit of Space Rent – To provide the facility of online space booking to the potential exhibitors for greater transparency and doing business; Software module for online booking of space and online payment of space rent has been developed for IITF’2012. The online booking of space and online payment of space rent module for Aahar International Fair and Leather Fairs, 2013 are also being implemented.

Besides facilitating various Divisions in their •IT enabled functions on day-to-day basis, the Computer Department of ITPO has also been facilitating development, hosting and maintenance of corporate website of ITPO, two trade portals and fair specific websites.

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Trade Information

During 2011-12, over 100 titles of periodicals of which 8 priced ones and rest on gratis basis and about 10 CD-ROMS were added in the Business Information Centre. Out of these titles (about 1500 issues of these titles), 80 were trade related periodicals and others non trade periodicals (i.e. Grah Shobha, Sarita, India Today etc.). During April-December 2012, over 100 titles of periodicals of which 9 priced ones and rest on gratis basis as mentioned above and 34 CDs were received in Business Information Centre Library. Besides, 39 issues of Indian Export Bulletin were brought out and hosted on the website up to December 2012.

Business Information Centre

With a view to provide reliable trade information to Indian exporters and overseas buyers, the ITPO has set up the Business Information Centre and Trade Portal www.tradeportalofindia.org at Pragati Maidan. The trade portal 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 provides information on the EU countries and covers other countries and regions. It 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.

The Centre provides online access of KOMPASS - (a database of 1.8 million companies for 82 countries, searchable by country and product, classified by manufacturer/importer/distributor/agent) to its members.

Setting up of Regional Trade Centres

ITPO is providing assistance to State Governments in setting up Regional Trade Promotion Centres

(RTPCs) for creating Export Infrastructure in State Capital/major cities.

Commercial Publicity & Public Relations

During the current year, ITPO made extensive publicity arrangement for its B2B and B2C events through multimedia campaign viz. Print, electronic and outdoor media in India and overseas. This publicity campaign was supplemented with brochures, invitation mailers, posters etc. Fair catalogues were printed for both domestic and overseas events.

ITPO worked in close coordination with the print and electronic media to ensure meaningful coverage through newspapers, magazines, radio and TV channels disseminating information for attracting quality visitorship.

Close liaison with All India Radio and Doordarshan who in turn cooperate with ITPO in disseminating information of its fairs and other promotional activities.

ITPO’s activities and its exhibition infrastructure were highlighted in the Calendar of Events booklet which also listed ITPO’s programmes of events in India and abroad over a period of two years. The booklet was mailed to its target audience comprising trade and industry associations in India and abroad, overseas missions in India as well as Indian missions abroad and nodal industry organisations in different States.

ITPO also brought out a quarterly newsletter ‘Log On’ for updates on ITPO’s activities and events to trade and industry in India and overseas, Central Ministries and Departments, State Governments, PSUs, EPCs etc. As part of corporate publicity efforts, advertorials were brought out in publications/ newspaper supplements in respect of major fairs while corporate advertisements on major fairs were released in prominent publications.

Tender Notices pertaining to various matters were also released in various publications from time to time apart from uploading on ITPO’s website.

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