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India-US economic ties driven by common interest, says Goyal

The CEO Forum, comprising CEOs from leading Indian and US-based companies, is co-chaired by N Chandrasekaran, Chairman of Tata Sons and James Taiclet, President and Chief Executive Officer, Lockheed Martin…reports Asian Lite News

During the virtual India-US CEO Forum on Thursday, Commerce Minister Piyush Goyal highlighted the significant growth of the India-US economic relations, driven by the common interest of promoting sustainability, emerging technologies, globally resilient supply chains, and small businesses.

During the forum, which was jointly chaired by Piyush Goyal and US Secretary of Commerce Gina Raimondo, India’s commerce minister reiterated the importance of such dialogues in leveraging this momentum. According to a commerce ministry statement, Secretary Raimondo thanked Piyush Goyal, co-chairs and CEO forum members for their participation and insightful identification of common focus areas that will further bolster the bilateral partnership between the two nations.

According to the statement, chief executive officers (CEO) from both sides commended the two governments for implementing transformative reforms and initiatives undertaken to strengthen bilateral cooperation.

The CEOs, under the seven working groups, presented priority areas to create stronger partnerships and boost growth across various critical areas such as entrepreneurship and promoting small businesses, health care and pharmaceuticals, aerospace and defence, information and communications technology (ICT) and digital Infrastructure, energy, water and environment, infrastructure and manufacturing, financial services, trade and investments, among others, according to the commerce ministry statement.

This ministry of commerce also said dialogue would serve as the framework under which specific recommendations will be charted out during the sixth edition of the India-US CEO Forum, due to be held early next year.

This is the sixth time the Forum has been convened since its reconstitution in December 2014 by the governments of India and the US.

The ministry statement said the Forum continues to be an effective platform for dialogue across key sectoral themes and to identify areas for closer collaboration for mutual benefit of both economies. Senior government functionaries, including Taranjit Sandhu, the Indian Ambassador to the US, also participated in the meeting.

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The development comes as the global supply of wheat is getting constrained due to the Russian-Ukrainian war…reports Asian Lite News

Egypt has approved India as a wheat supplier, said Union Minister Piyush Goyal on Friday.

“Indian farmers are feeding the world,” tweeted the Minister of Commerce and Industry, Consumer Affairs, Food and Public Distribution and Textiles.

Indian farmers are feeding the world.

Egypt approves India as a wheat supplier. Modi Govt. steps in as world looks for reliable alternate sources for steady food supply.

Our farmers have ensured our granaries overflow & we are ready to serve the world.https://t.co/h56oSc3HDC
— Piyush Goyal (@PiyushGoyal) April 15, 2022

“Egypt approves India as a wheat supplier. Modi Govt. steps in as world looks for reliable alternate sources for steady food supply.”

“Our farmers have ensured our granaries overflow & we are ready to serve the world.”

The development comes as the global supply of wheat is getting constrained due to the Russian-Ukrainian war.

Both the nations are major global producers of wheat.

On the other hand, Egypt is a major wheat importer in the world.

Recently, India has diversified its wheat exports market.

Less MSP procurement

The Ukraine-Russia war-led speculation surge for Indian export of wheat may bring down government procurement under Minimum Support Price (MSP) to 30-35 million metric tonnes (MMT) against the targeted 44 MMT this year and high vegetable oil prices may shift some unirrigated rice area to oilseeds, a US Agriculture Department report said.

The US Department of Agriculture’s ‘Grain and Feed Annual – 2022’ report for India, released late on Tuesday night (India time) dwells on market possibilities, sowing area, and record productions.

Pointing out that India is heading for a record wheat harvest this marketing year (MY), it said the Foreign Agricultural Service, New Delhi forecasts MY 2022/2023 (April-March) wheat production at a record 110 from 30.9 million hectares, and up from last year’s record 109.6 MMT from 31.1 million hectares.

“India is heading for a record wheat harvest this coming marketing year (MY) thanks to highly favorable weather conditions in the major wheat growing areas. If good weather conditions hold through the harvest (April-May), FAS New Delhi (Post) forecasts MY 2022/2023 (April-March) wheat production at a record 110 million metric tons (MMT) from 30.9 million hectares, and up from last year’s record 109.6 MMT from 31.1 million hectares,” it said.

It blamed global prices fueling domestic pricing and receding fear of new Covid-19 disruptions to claim that government procurement is set to swing into reverse in 2022/23.

“In February 2022, but just prior to Russia’s invasion of Ukraine, the Indian government set the 2022/23 procurement target at 44 million metric tons. With speculation rampant about a surge of demand for Indian export wheat, due to high global prices, sources see the government’s minimum support price (MSP) procurement dropping to 30-35 million metric tons,” it said.

India’s 2021/22 (October 2021-January 2022) total rice exports are officially estimated at 6.8 MMT, up from 5.7 MMT during the same period last year on increased coarse rice exports to Bangladesh, China, and African countries, the report said.

“Assuming no significant change in the current price parity for Indian rice, 2021/22 rice exports are expected to reach 20.5 MMT, and 2022/23 exports are forecast at 18 MMT.”

Warning that high vegetable oil prices may shift some un-irrigated rice area to oilseeds, the report said that timely, well-distributed 2022 monsoon rains are critical for forecast area planted and yields as 40 per cent of the rice area is rain-fed (un-irrigated).

Despite 2021 monsoon rains supporting a record corn harvest, 2021/22 total coarse grain production is estimated lower at 49.9 MMT due to lower production of other coarse grains, the report said. Timely planting under above normal 2022 monsoon rains and favorable weather conditions for the winter planted rabi season corn boosted yield prospects with 2021/22 corn production estimated at a record 32.5 MMT.

“However, production of millet, sorghum, and barley are estimated down from last year on lower plantings (area shifted to rice and pulses),” it said.

The report also pointed out that despite the record harvest, 2021/22 prices are on the upward trajectory.

“Prices have gone up further in the last three months in response to global prices spiking due to the Russian invasion of Ukraine. Despite India’s export competitiveness, Post forecasts 2022/23 exports lower at 2.4 MMT and imports at 100,000 MT on forecast tight domestic supplies and strong demand,” said the report that came with a disclaimer that it contained assessment of commodity and trade issues made by the USDA staff and not necessarily statements of official US government policy.

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