What’s in news?
India & China has signed a protocol for exporting of Indian Chilli meal to China.
- India signs protocol for export of chilli meal to Chinese markets.
- This is the fourth protocol signed between the two nations over the past year allowing the export of farm commodities from India.
- China allowed India to export Chilli meals to its market, providing the crop with a much-needed export outlet.
- Chilli is the largest exported spice from India and China has emerged as a major buyer in the last few years.
- Last year, Beijing had allowed market access to three Indian food products — mangoes, grapes and rice.
- The China has promised to address these concerns through the broad framework provided by successive joint economic groups (JEGs) and the Five-Year Development Programme for Economic and Trade Cooperation between China and India, which was signed in September 2014.
- A meeting was held between Anup Wadhawan, Commerce Secretary, India and Li Guo, Vice-Minister, General Administration of Customs of China (GACC) discussed issues related to India’s pending request for the clearance of more farm products for the Chinese market, said an official release.
- India also pointed out that a large number of agricultural items for exports were awaiting China’s nod, including soyabean meal, pomegranate, okra, sapota, banana, papaya, pineapple, maize and sorghum.
- Also the protocols for export, signed since June 2018, include those for basmati and non-basmati rice, fish meal and oil and tobacco leaves.
- The Protocols signed between India and China on Agricultural Commodities (With years of Signing);
- Mango (2003)
- Bitter Gourd (2005)
- Grapes (2005)
- Rapeseed meal (2015)
- Basmati Rice (2006)
- Basmati Rice & Non-Basmati Rice (2018)
- Fish meal/ Fish oil (2018)
- Tobacco Leaves (January, 2019)
- Chilli Meal (May, 2019)
Significance of the deal:
As India is looking for a greater market access for its agricultural and manufactured products in Chinese market, therefore increasing exports of these products to China will help India narrow its widening trade deficit with China, which stood at US $50.12 Billion during April-February 2018-19.
- India has persistently pushed for market access for agricultural and processed food products to China. India’s firm stance on the issue has led China to commit to providing market access after a gap of 13 years.
- The meeting was happened in the shadow of the US-China trade war. The Chinese side noted India’s concerns regarding the long-existing trade imbalance and requests for market access for Indian products and services.
India & Chilli:
- India is the world’s largest producer, consumer, and exporter of chilli.
- Official statistics show that red chillies are grown across India on 792,000 hectares of land in Andhra Pradesh, Karnataka, Madhya Pradesh and Maharashtra.
- The crop is planted in August and September, and harvested in March and April. India produced nearly 3 million tonnes of dried chilli and peppers, according to the Food and Agriculture Organization of the United Nations.
- More than 1.3 mt of red chilli produced in India every year, 70 per cent are consumed domestically, with the rest being exported. Dried chilli exports make up 22 per cent of all the spices exported from India
- Chilli meal is the residue left after the oil is extracted from chillies. It is widely used as an industry input in the manufacturing of chilli sauce and other products.
- The draft protocol for okra is ready and is expected to be finalised soon for soyabean meal.
- Recently, India has identified and also shared with China a list of about 380 products, which includes textiles, horticulture, chemicals and pharmaceutical products. The shipments products are chosen keeping in mind their shipments huge export potential.
- To improve the trade imbalance China must accede to India’s demand of lower barriers for exports of meat, rice, medicines and IT services.