Canada allows imports of Indian Pomegranates, Banana, Mangoes & Okra for first time : APEDA

India exported $0.69 million grapes, to Canada last year, after access was granted by that Country

NEW DELHI: Canada has allowed market access with certain conditions to Indian horticultural products like custard apples, pomegranates, okra, bananas, mangoes – this was relayed to the Indian industry by India’s Agricultural and Food Processed Food Products Export Development Authority (APEDA) confirming the Canadian Food Inspection Agency’s (CFIAs) approval.

The conditions for the shipments that CFIA has specified included – origin of the material be clarified in a detailed manner on the shipping documents and that the produce is free of soil, pests, and leaves.

APEDA’s letter detailed, “interested exporters of above-mentioned commodities are advised to contact the Canadian importers to start export from India subject to compliance of above mentioned requirements.”

The letter also clearly stated that exporters must keep in mind that packaging, labeling and other requirements pertaining to Canadian import requirements are met diligently.

It is not clear however whether access was granted to all the horticultural products mentioned above at once or separately in parts.

India exported $0.69 million grapes, to Canada last year, after access was granted by that Country. This was a growth of 32.59% compared to -36.83% growth seen in 2014-15.

There is the news that a sizeable quantity of pomegranates is likely to be shipped commanding good prices.

This positive development comes after the resumption of talks on free trade between the two countries after two years. Canadian and Indian officials are under discussions.

Why India must take China’s warning of a trade war seriously

NEW DELHI: India has not taken Chinese bullying over Doklam seriously. For the last several weeks, China has been warning of helping insurgents in India, invading border areas in Uttaranchal and Kashmir, and a war breaking out soon. It is clear China cannot afford a war over Doklam. That’s why India has not responded to China’s belligerence in equal measure.

However, there is one war which can break out and India cannot afford it—a trade war with China. Recently, India imposed anti-dumping duties on 93 Chinese products. China is not going to tolerate this measure and is likely to respond. State-owned Chinese media has urged Chinese firms to reconsider the risks of investing in India and warned New Delhi to be prepared for the “possible consequences for its ill-considered action”.

An article in state-owned Global Times said that China could easily retaliate with restrictions on Indian products, but added that it “doesn't make much economic sense” for the country. But it warned that a trade war between China and India seemed to be looming after the imposition of anti-dumping duties on Chinese products.

Why India cannot afford to fight a trade war with China at this juncture? Consider the following:

India's trade deficit with China rose to $46.56 billion last year. China's exports to India totaled $58.33 billion, registering a meager increase of 0.2% compared to $58.25 billion in 2015. India's exports to China dropped 12% from 2015 to $11.76 billion.
India exports less to China (mainly raw materials) and imports more (mainly electronics and other manufactured goods which are in high demand). India's pharma sector has critical dependence on Chinese imports used in drugs manufacturing.
China's exports to India account for only 2 per cent of its total exports. So even if Indians boycott all the goods imported form China, it will not make as big an impact on China as to bring it to its knees before India.

Of course, China needs new markets for its manufactured goods, and India is one of those new markets where its electronic goods, especially smartphones, have found a large market. But China can find markets in other Asian countries and even in Africa. It is also trying to create a market for its goods in Europe. It is in no way dependent on India.

China is India’s largest trading partner, but the trade is heavily skewed in favour of China. A trade war when Indian manufacturing ability is limited is not going to favour India. India’s imports from China are crucial at this stage.India today imports telecom gear worth over Rs 70,000 crore annually, much of it from Chinese firms like Huawei and ZTE. Chinese companies dominate the telecom sector in India. In handsets, they control 51% of India’s $8 billion plus smartphone market with brands like Xiaomi, Oppo, Vivo and OnePlus.

Power is another sector where India has come to be dependent on Chinese imports. In the 12th Plan alone, almost 30% of the generating capacity was imported from China. In the rapidly growing solar energy sector, between April 2016 and January 2017, solar equipment from China had a share of 87% in a market pegged at $1.9 billion. According to consultancy firm Grant Thornton, in 2017, when inbound deals dipped, the Chinese shifted gears and accounted for 31% of the inbound deal value as against27% from the US.

The popular impression is that China is dumping consumer goods into India. But the fact is that India depends on China for capital goods too. Reduction in import of cheaper capital goods will push up production costs.

India can fight trade wars with China only when it has removed the big skew in its trade with China, which can take a decade of manufacturing growth.

Amid Doklam standoff, Chinese imports to India up by 33% in April-June quarter

The rise in imports is on the back of a stronger rupee that has appreciated about 5.5% against the US dollar and 3.7% against the Chinese yuan since February.


Chinese imports to India recorded a 33% jump in the April-June quarter over the same period last year, government data shows, indicating trade remains unscathed by the border standoff between the two countries.
The rise in imports is on the back of a stronger rupee that has appreciated about 5.5% against the US dollar and 3.7% against the Chinese yuan since February. Electronics and engineering goods and chemicals were the biggest imports.
“The political tension that we are witnessing now is unlikely to have any impact on the trade relations between the two countries…it is business as usual for both countries at present and the situation will not change,” DK Joshi, chief economist, Crisil, told Hindustan Times.
The Asian giants are locked in a row in the remote Doklam plateau, which borders Sikkim in India’s northeast and is claimed by both Beijing and Bhutan, since June 16.
Chinese blame India for the two-month long standoff, the longest between the neighbours. It accuses India of trespass and preventing its soldiers form building a road, which New Delhi says is a threat to its security.
China is also India’s largest business partner, with trade heavily tilted in its favour.
During the April-June period, India imported goods worth $18 billion compared to $13.5 billion last the previous year. The appreciation of the rupee allowed Indian importers to purchase larger quantities of goods at lower prices, a report by the State Bank of India said, adding it could have a bearing on the domestic industry. A yuan is trading at Rs 9.6.
“The political and economic compulsions are divorced from each other but rights steps need to be taken to encourage domestic industry so that it could generate income and jobs and reduce India’s dependence on imports, giving boost to ‘Make in India’, SBI chief economic adviser Soumya Kanti Ghosh SBI said on Sunday.
The report said the appreciation of rupee against Chinese renminbi enabled Indian importers to purchase larger quantity of goods at lower prices. “We estimate, India on a conservative basis, saved at least $3.9 billion in May 2017 because of the stronger Indian rupee,” it said.
Federation of Indian Exports Organisation director general Ajay Sahai was upbeat on business ties. Trade would not be affected by the “current level of political tension”, he said.
But the widening trade deficit -- the difference between imports and exports—continues to be a worry. Trade deficit in 2016-17 stood at $51.1 billion compared to $19.26 billion in 2009-10. It means India’s is buying way more than what it sells to China.
For some policy experts though it could be India’s leverage. With its economic growth slowing, China would want its foreign markets to widen. The economy is also the reason China is looking to flex its muscles abroad to bolster confidence at home.