The 5th International convention of Commodity Participants Association of India (CPAI) stood testimony to the progress being made on reforms to eventually build a ‘New India’ as a true global financial hub and leverage its position of being worlds biggest consumer market to become the price setter for global commodities market. The said convention also showed the collaborative approach that industry can work in tandem with its regulator. At its 5th international CPAI convention in New Delhi post the merger of its erstwhile regulator of commodities markets the FMC with SEBI, CPAI got to business with policy makers and industry leaders for setting a roadmap for future that creates the best of infrastructure, world class products and huge number of participants in the commodities market.
The CPAI is apt illustration of trade body thats proactive to dovetail the desire of the industry to grow seamlessly with the policy paradigm that will be most conducive for its members, who now are over 1000 in number and spread out across India’s many tier II and Tier III cities. The said convention was inaugurated by two union ministers among distinct dignitaries from government, SEBI and various Industry leaders in New Delhi on the 18 March 2017 in New Delhi, namely Radha Mohan Singh, Union minister of Agriculture; Santosh Gangwar, Minister of State for Finance; Ajay Tyagi Chairman, SEBI; Mrugank M Paranjape, MD & CEO, MCX; Ashish Chauhan, MD & CEO, BSE; Ashok Agarwal, Chief Mentor, CPAI; Shiv Kumar Goel, National President, CPAI and B K Sabharwal, Chairman, Convention Committee.
In the inaugural address, Radha Mohan Singh, Union minister of Agriculture praised the CPAI office bearers to have inculcated the very crucial issues of doubling the farmers income and making India a price setter for global commodities market. “Gaon, Garib aur Kisan are the prime focus of the present government under the leadership of PM Narendra Modi and the sessions lines up at CPAI furthers the cause being propounded by the Government, which deserves due appreciation. The agriculture sector has performed well in the past two years amidst difficult environmental circumstances and is poised to grow at over 4% this year. Also, we will further strengthen our quest to add more spot markets in villages onto digital platform and seek help from CPAI member to join forces in this quest as a vibrant commodity market is lifeline for Make in India” added Singh.
Santosh Gangwar, Minister of State for Finance in his key note address for inaugural session highlighted the faith masses repose in Prime Minister Narendra Modi and is evident from the recent results of elections in five states. “The GST regime that is now all set to be rolled out in July will further stimulate the growth mechanism as one nation now will have one tax. Our Prime Minister is determined to create all facilitating infrastructure to help the farmers get due return. Here, I will request our CPAI members and business leaders present at this international convention to support the farmer community, agriculture sector and be assured of all the co-operations from the government.the government” said Gangwar.
Showcasing the pro-growth reforms that SEBI has envisaged, Ajay Tyagi Chairman, SEBI, said, “Post taking over FMC, SEBI has continued to ensure that the commodities market have the best of state-of-the-art transparent regulatory framework that helps to serve more products and large number of participants. The recent announcement by the FM to set up an expert committee to integrate spot and secondary markets will go a long way to bring further depth in the derivatives and commodities market. We are deliberating on more measures for encouraging the farming community, who only indirectly use the commodity market for reference of present prices, whereas it can actually help them rationally determine the crucial decisions regarding sowing, storage, marketings and allied aspects that are crucial for welfare of farmers. Six new contracts that have been permitted by the Government includes soya bean and diamonds.”
“There is need for introducing new products along with strong settlement processes and state-of-the-art risk management procedures introduced by our regulator SEBI. It will add to the number of much needed participants in the market. The new announcement on soyabean and diamond induction into market will give more depth to the commodities market,” said Mrugank M Pranjape, MD & CEO, MCX. While, Ashish Chauhan, MD&CEO, BSE insisted that the integration of spot and commodity markets will yield better price discovery and help convert our rural market into a truly global market. Also, post taking over FMC, SEBI has continued to ensure that the commodities market have the best of state-of-the-art transparent regulatory framework that helps to serve more products and large number of participants.
In the first technical session on ‘Growth of Commodities Market- The Way Forward’ a vibrant mix of public and private sector leaders dealt on various possibilities. Chaired by Shashank Saksena, Advisor (CM), Ministry of Finance, the panelists included P K Bindlish, CGM, CDMRD, SEBI; Parveen Kumar Singhal, President & WTM, MCX; Vijay Sardana, Member, CDAC, SEBI and Anil Misra, MD&CEO, NMCE. It was moderated by Rajesh Bhayani, Commodities Editor, Business Standard.
“Government is determined to faster development of financial markets and has initiated several legislative reforms in this regard. The FMC merger with SEBI, new solvency and bankruptcy framework and resolution mechanism are some of the reforms that have potential to build confidence and bring new participants to these markets,” said Shashank Saksena, Advisor (CM), Ministry of Finance.
Its a known fact that for many many commodities India is either the biggest producer or consumer of said commodities. But, India has not realised that this position should be leveraged to create world class markets and go onto become a price setter for the global commodities market instead of being a price taker, opined P K Bindlish, CGM, CDMRD, SEBI. Here, Vijay Sardana, Member, CDAC, SEBI illustrated that with help of simple arithmetic, one can ascertain that agri commodities brokerage business is with 1000 cr business and has potential of growing five times in near future. The need is to break out of the comfort zone and create competition that will result in deepening and broadening of markets.
Similarly, the second technical session deliberated on pathbreaking reforms and measures must to “Making India a Global Financial Hub- Changing India’s role from price taker to price setter”. Chaired by S K Mohanty, ED, CDMRD, SEBI, the panelists included Sanjit Prasad, MD & CEO, ICEX; Sandip Mehta, Assistant Vice President, NSE; Sameer Patil, Senior General Manager, BSE and Anand Rathi, Chairman, Anand Rathi Commodities. This session was moderated by Laxman Roy, Commodities Editor, CNBC Awaz.
“2017 seems to be the year of integration as is evident from the budget announcement made by the FM this year. Unlike the impact of CTT, the GST regime will help the market attract depth, products and participants,” said S K Mohanty, ED, CDMRD, SEBI. Introduction of diamond trade in commodity market is a big leap that reflects the faith in the market mechanism. It will help growth of diamond into an inflation resistant asset just like bullion. It will also bring economic benefit for the diamond business, who can hedge risks more effectively, emphasised, Sanjit Prasad, MD & CEO, ICEX.
Adding another dimension that should push India transforming into a global financial hub, Anand Rathi, Chairman, Anand Rathi Commodities said, “Being world biggest democracy and robust legal system, India has a genuine claim to become a global financial hub. In fact, in 2005 a expert committee was set to build a roadmap to do so. Past 20 years had seen a big jump and the next will witness an even bigger leap forward for financial markets in India.”
Further, in the third technical session CPAI made clear its focus and necessity of undertaking measures that are essential to “Doubling farmers income by 2020- Role of commodities market and integration of spot and futures commodity markets”. Chaired by Vasant P Gandhi, NABARD, Chair Professor, IIM Ahmedabad; the panelists here included Sanjay Kaul, MD & CEO, National Collateral Management Services; Sarat Mulukutla, Chief Commercial Segment, NCDEX; Sumeet Mittal, Trader and D K Agarwal, Chairman, SMC Comtrade. This session was moderated by Mrityunjay Kumar Jha, Commodity Editor, Zee Business.
“In the ambitious objective of doubling the farmers income- as envisioned by the PM Narendra Modi. Getting better price to farmers can address 60-70 per cent of the said objective. This will require efficient spot and futures markets,” said Vasant P Gandhi, NABARD, Chair Professor, IIM Ahmedabad.
In the fourth technical session built around gold titled- ‘Bullion: Opportunities and Challenges and need for gold spot exchanges’. Chaired by Saurabh Garg, Joint Secretary (I&C), Ministry of Finance the panelists here included Meng Chan Shu, Director, DGCX, UAE; Naveen Mathur, Head-Business Development, MCX; Vineet Bhatnagar, MD, Phillip Commodities India; and Mayank Khemka, MD, Khemka Group of Companies. This session was moderated by Manisha Gupta, Commodities Head, CNBC TV-18.
“The impact of demonetisation on gold is not known- as yet! However, statistics reveal that the import of gold has seen a drop in the recent past and it could have been due to various reasons like the scheme rolled out by the government to make holding of gold remunerative for the masses,” said Saurabh Garg, Joint Secretary (I&C), Ministry of Finance.
Explaining the perspective of Dubai to develop state of the art bullion exchange in Dubai, Meng Chan Shu, Director, DGCX, UAE told that their expert team went to study in details the contracts prevalent in the Shanghai Gold Exchange. “Also, we introduced amenities that in our region were required like provision of actual delivery in addition to the roll over options. India will also need to adopt and introduce innovations that are specific to its markets,” he added.
Likewise, India needs a comprehensive gold policy so has to develop a world class spot gold exchange and roll out of GST is a good opportunity to do so. This will help India leverage its position being the largest consumer of gold to go on to become a price setter for bullion in the world commodity market, opinied Vineet Bhatnagar, MD, Phillip Commodities India
The day long deliberations finally ended on a resounding successful note by the concluding remarks from Narinder Wadhwa, National Executive Member, CPAI and vote of thanks by R C Maheshwari, National Executive Member, CPAI.
News Update| 2nd June 2017| APEDA to conduct Buyer Seller Meet on Mangoes on 5th -6th June at Mumbai
APEDA will organising a Buyer Seller Meet (BSM) on 5th -6th June, 2017 at Mumbai. The programme will facilitate the interaction of Buyers of mangoes from China, Japan, Australia, Iran, Mauritius, South Korea and Dubai with the concerned Government officials of mango exporting states and the mango exporters. About 30 leading importers from their countries are exported to participate in the event. The objective of the event is to provide a platform for interaction of exporters and importers of mangoes, to promote exports of mangoes from the country.
The Buyer Seller Meet has been scheduled on the first day (5th June, 2017) in Hotel Fortune, Navi Mumbai. There are about 60 exporters from the country who would be participating in the event. State Governments of Maharashtra, Gujarat, Karnataka, Tamil Nadu, Andhra Pradesh, Telanagana, Kerala, Uttar Pradesh and Bihar are participating in the BSM and would be showcasing their variety of mangoes through a stall put up separately for each State. Information related to mangoes would be disseminated through various publicity material prepared. Further, a provision has been made for wet sampling of mangoes to the buyers of the different countries, so that they can appreciate a vast range of mango and its taste. The second day (6th June, 2017) of the event is plan to showcase the critical infrastructure set up for export of mangoes namely Hot Water Treatment facility, Vapour Heat Treatment facility and Irradiation Facility. The idea is to create confidence among buyers about the quality improvements made by India and its commitment to export safe food products. The event is going to be inaugurated by Alok Vardhan Chaturvedi, Additional Secretary, Ministry of Commerce and Industry, Govt. of India. The event would be joined by D.K. Singh, Chairman, APEDA, Shakil P. Ahamed, Joint Secretary, MIDH, Ministry of Agriculture and Farmers Welfare and Ashwani Kumar, Joint Secretary, Ministry of Agriculture and Farmers Welfare.
Post event report| 05 June 2017| Leading Importers and Exporters participate in the Mango Buyer Seller Meet
Twenty one leading importers from China, Iran, Japan, Australia, Mauritius, Republic of Korea and UAE, participated in the Mango Buyer Seller meet(BSM) organised by APEDA. More than 100 exporters from across the country participated in the Buyer Seller meet. One of the leading importers Dalian Yidufrom China having a chain of stores interacted with the Indian exporters and expressed his positive response towards the Indian fruit offered. Some of the leading exporters such as Bombay Exports, Asar Brothers, Kaybee Exports, etc. acknowledged the good response during the BSM. Another important highlight of the event was wet sampling of different commercial varieties of mango like, Alphonso, Kesar, Banganpalli, Totapuri, Dussheri, Langda, Chausa, etc. Local indigenous varieties of mango like SelamGundu, Mallika, Peter, Rumani, Neelam, HimamPasand, Mulgoa, Kundath, ArkaAnmol, Fazli, etc.
State horticulture departments from ten mango producing states displayed wide range of varieties grown in respective states. These states were provided with stall for showcasing their products along with their strengths. APEDA showcased range of fresh fruits at its pavilion to sensitise the importers about the offerings by India in fresh sector. Along with the fresh fruits segment, value added products of mango such as MangoPulp, Pickles, Chutneys, Jams & Jellies, Juices, etc. were also displayed.
The event was inaugurated by Alok Vardhan Chaturvedi, Addl. Secretary, Ministry of Commerce & Industry in presence of D K Singh, Chairman APEDA, Shakil P Ahammed, Joint Secretary, Ministry of Agriculture &Farmers’ Welfare, Kadire Gowda, Managing Director, Karnataka State Mango Development and Marketing Corporation, Chiranjiv Chaudhary, Commissioner Horticulture, Andhra Pradesh, Madhumita Sinha Ray, Commissioner Horticulture, West Bengal and senior officers from various State Governments.
News Update| 12 June 2017| Commerce Secretary presents APEDA’s 22nd annual awards
Agricultural and Processed Food Products Export Development Authority popularly known as APEDA aims to promote the export of agricultural commodities and processed food products by linking Indian exporters to global markets besides providing comprehensive export oriented services. APEDA provides referral services and suggest suitable partners for joint ventures. APEDA’s export basket ranges from typically Indian ethnic products like pickles, chutneys, sauces, curries etc. to rice, honey, fresh and processed fruits and vegetables, beverages, guar gum, poultry, livestock products, confectionery, cut flowers, food grains, aromatic plants and other Indian delicacies.
The awards were presented by Commerce Secretary Rita Teaotia. Congratulating the winners she said India has emerged as 7th largest exporter of agri-products globally and it goes to the credit of exporters who even in these times of economic slowdown have continued to grow. She said opportunities in newer markets have to be searched for further growth.
In order to felicitate the exporters for their distinguished service in exports of Indian Agro and Processed Food, 82 awards were presented for the years 2014-15 and 2015-16 in the following categories: Diamond – 2 Gold – 33 Silver – 29 Bronze – 18. Allanasons got the “Diamond Trophy” for both years for their outstanding export performance and overall contribution in food sector. Awardees getting “Golden Trophy” for both the years include Ramesh Flowers (for Floriculture), Nandyala Satyanarayana (for Fresh Vegetables), Namdhari Seeds (for Fruits & Vegetable Seeds), Al-Hamd Agro Food Products (For Buffalo Meat), SKM Egg Products Export (India) (for Poultry Products), Gujarat Co-Op Milk Marketing Federation (for Dairy Products), Kejriwal Bee Care India (for Natural Honey), Jain Irrigation Systems (for Processed Fruits & Vegetables), U.B. Global(for Alcoholic Beverages), Hindustan Gum & Chemicals (for Guar Gum) and Satyam Balajee Rice Industries (for Non-Basmati Rice).
News Update| July 18 2017
India brings 455 markets from 13 States to integrated e-NAM
585 markets across India are targeted for integration to e-NAM by March, 2018, out of which 455 markets from 13 States have been integrated so far. For this purpose, financial assistance of Rs. 30 lakh per market is given. This has been increased to Rs.75 lakhs per mandi in Union Budget for 2017-18. In addition the software and a mandi analyst for a year is also provided to each mandi.
News Update| 2 August 2017| India and BRICs countries to set up BRICS Agriculture Research Platform
The Union Cabinet chaired by Prime Minister Narendra Modi has given its ex-post facto approval for a Memorandum of Understanding (MoU) signed among India and various BRICs countries for establishment of the BRICS Agriculture Research Platform (BRICS-ARP). During the 7th BRICS Summit held on 9thJuly 2015 at Ufa in Russia, Prime Minister Modi proposed to establish BRICS Agriculture Research Centre which will be a gift to the entire world. The Centre will promote sustainable agricultural development and poverty alleviation through strategic cooperation in agriculture to provide food security in the BRICS member countries.
In order to further intensify cooperation among BRICS countries in agricultural research policy, science and technology, innovation and capacity building, including technologies for small¬holder farming in the BRICS countries, an MoU on establishment of the Agricultural Research Platform was signed by the foreign Ministers of BRICS countries in the 8th BRICS Summit held on 16th October, 2016 at Goa.
BRICS-ARP will be the natural global platform for science-led agriculture-based sustainable development for addressing the issues of world hunger, under-nutrition, poverty and inequality, particularly between farmers’ and non-farmers’ income, and enhancing agricultural trade, bio-security and climate resilient agriculture.
Also, in an related development in order to establish the ISARC, a Memorandum of Association (MOA) has been signed on 2 August 2017 between the Department of Agriculture, Cooperation and Farmers Welfare (DAC & FW) represented by Secretary, DAC&FW and International Rice Research Institute (IRRI), Philippines represented by Director General, IRRI in presence of the Union Agriculture and Farmers Welfare Minister, Radha Mohan Singh.
According to Singh said that the Center will be the first international Center in the Eastern India and it will play a major role in harnessing and sustaining rice production in the region. It is expected to be a boon for food production and skill development in the eastern India and similar ecologies in other South Asian and African countries.
Agriculture Minister said this would be a Centre of Excellence in Rice Value Addition (CERVA) and will include a modern and sophisticated laboratory with the capacity to determine quality and status of heavy metals in grain and straw. The Centre will also undertake capacity-building exercises for stakeholders across the rice value chain.
ISARC will operate under the governance of the IRRI Board of Trustees who will appoint an appropriate IRRI staff member as Director. A Coordination Committee will be headed by Director General, IRRI as Chair and Secretary, Government of India, DACFW as Co-Chair. The other members of Coordination Committee are Deputy Director General (Crop Sciences), ICAR; Director, NSRTC; IRRI representative in India, representative of Government of UP and representatives of Governments of Nepal & Bangladesh and Private Sector.
Adding on Singh said that the rich biodiversity of India can be utilised to develop special rice varieties. This will help India to achieve higher per hectare yields and improved nutritional contents. India’s food and nutritional security issues will also be addressed. The Centre will support in adopting value chain based production system in the country. This will reduce wastage, add value and generate higher income for the farmers. The farmers in Eastern India will benefit in particular, besides those in South Asian and African countries.
Further, Central Government has received proposal from the State Government of Telangana for establishing a Spice Park at Nizamabad for turmeric. It has been intimated to the State Government that the Spices Board would extend all technical support if land and funds for establishing the Spice park is provided by the State. Central Government has also approved the setting up of a Spice Development Agency (SDA) for Telangana having headquarters at Warangal for co-coordinating with the State / Central Agencies implementing programmes for research, production, marketing, quality improvement and export of spices, including chilli and turmeric.