India’s Exports of Ready To Eat products rises by 24% to $ 394 million in 2021-22 (April-October) compared to 2020-21 (April-October)

India’s Exports of Ready To Eat products rises by 24% to $ 394 million in 2021-22 (April-October) compared to 2020-21 (April-October)

India’s export of final consumer food products such as Ready to Eat (RTE), Ready to Cook (RTC) and Ready to Serve (RTS) under the APEDA basket has registered a significant growth in the last one decade.

With the Ministry of Commerce & Industry laying thrust on Value Addition of products for exports, the food products under the RTE category have registered an Compound Annual Growth Rate (CAGR) of 12 per cent in the last one decade and the share of RTE in APEDA export has increased from 2.1 per cent to 5 per cent during the same period.

The export of products under Ready to Eat (RTE), Ready to Cook (RTC) and Ready to Serve (RTS) segment have registered an CAGR of 10.4 per cent from 2011-12 to 2020-21. India exported more than $ 2.14 billion worth of final food products in 2020-21. Since final food products are time saving and readily available, the demand for food items under the categories of RTE, RTC and RTS has increased manifold in recent years.

The export of products under RTE, RTC and RTS categories rose by more than 23% to $ 1011 million in April – October (2021-22) compared to $ 823 million reported in April – October (2020-21). In view of this, export of RTE/RTC and RTS for last three years is placed in below graph.  

Source: DGCIS

 

According to the latest Directorate General of Commercial Intelligence and Statistics data, India exported final food products which includes RTE, RTC and RTS, worth USD 5,438 million in the last three financial three years (2018-19 and 2020-2021).

In 2018-2019, India recorded RTE exports of USD 766 million, which rose to USD 825 million in 2019-20 and USD 1043 million in 2020-21. Meanwhile, the RTC food products recorded an export of USD 473 million in 2018-19, USD 368 million in 2019-20 and USD 560 million in 2020-21. A comparative analysis of RTE/RTC and RTS for the current year, April--October (2021-22) against previous years for the same periods is placed in below graph. Export value of RTE/RTC and RTS has increased in 2021-22 against previous year.  

Source: DGCIS

 

The RTS food category registered an export of USD 436 million in 2018-19, USD 461 million in 2019-20 and USD 511 million in 2020-21.

The products covered under RTE category, includes Biscuits & Confectionery, Jaggery, Breakfast Cereals, Wafers, Indian Sweets and Snacks, Pan Masala & Betal Nuts etc. The Biscuits and Confectionery and Indian Sweets and Snacks constitute a major share of 89% in the RTE export in 2020-21.

The share of each category in RTE export are 52.32% (Biscuits & Confectionery), 1.52% (Jaggery), 4.11% (breakfast cereals), 1.73% (wafers), 37.04% (Indian sweets and snacks), and 3.28% (Pan Masala and Betal nuts).

The growth rate of RTE in 2020-21 against previous year was 26% while growth in Biscuits & Confectionery category recorded at 28.87%, Jaggery at 48.18%, Breakfast Cereals at 4.24%, Indian sweets and snacks at 29.75%, Pan Masala and B’nuts at 4.2% for the same period.

Notably more than 56% of RTE food products were exported to top 10 countries in 2020-21. USA is the top importing country in four categories of RTE products such as Biscuits & Confectionery (USD 79.54 million), Breakfast cereals (USD 5.33 million), Indian sweets and snacks (USD 99.7 million), Pan Masala & Betal Nuts (USD 5.95 million) while the remaining two products under RTE are significantly imported by Malaysia and Nepal. Malaysia imported Jaggery worth of USD 5.09 million and Nepal imported Wafers worth of USD 3.5 million in 2020-21.

The major destination of RTE export as per 2020-21 data are U.S.A (18.73%), U.A.E (8.64%), Nepal (5%), Canada (4.77%), Sri Lanka (4.47%), Australia (4.2%), Sudan (2.95%), U.K (2.88%), Nigeria (2.38%), Singapore (2.01%).

The RTC food products have been growing at CAGR of 7 per cent in the last one decade and the share of RTC in APEDA export has increased from 1.8 per cent to 2.7 per cent in the same periods. The major categories of food products covered under RTC are ready to cook, papad, flours and milled products and powder and starch. The category-wise share in RTC export is ready to cook (31.69%), papad (9.68%), flours and milled products (34.34%) and powder & starch (24.28%).

The growth rate of RTC in 2020-21 against previous year is 52 per cent while category wise growth rate of RTC is highest for powder and starch (174%) followed by Flours and Milled Products (36%), Ready to Cook (35%) and Papad (19%) in 2020-21 against previous year.

Above 74% of RTC food products were exported to top 10 countries in 2020-21 and USA is the top importing country of Flours and Milled Products and Ready to Cook from India in 2020-21 while two countries namely UK and Indonesia are at the top in importing of Papad and Powder & Starch during 2020-21.

The major exporting destination for RTC export in 2020-21 are U.S.A (USD 18.62 million), Malaysia (USD 11.52 million), U.A.E (USD 8.75 million), Indonesia (USD 7.52 million), UK (USD 7.33 million), Nepal (USD 5.89 million), Canada (USD 4.31 million), Australia (USD 4.2 million), Bangladesh (USD 3.43 million) and Qatar (USD 2.76 million).

In the category of RTS, the export has been growing at an CAGR of 11 per cent in the last one decade. The major final food products under the RTS category include jellies, squash & juices, other beverages, energy products/drinks and ice cream, soups, sauces, pasta and seasoning. The share of RTS has increased from 1.1 per cent to 2.5 per cent in last one decade.

 

 

The growth rate of RTS in 2020-21 against previous year (2019-20) is 11 per cent while category-wise growth rate of RTS is highest for Energy Products/Drinks (31.10%) followed by Ice Cream, Soups, Sauces, Pasta and Seasoning (19.34%), other beverages (14.12%).

The rise in export of agricultural and processed food products has been largely due to the various initiatives taken by APEDA such as organizing B2B exhibitions in different countries, exploring new potential markets through product specific and general marketing campaigns by active involvement of Indian Embassies.

APEDA has also taken several initiatives to promote geographical indications (GI) registered agricultural and processed food products in India by organizing virtual Buyer Seller Meets on agricultural and food products with the major importing countries across the world.

In order to ensure seamless quality certification of products to be exported, APEDA has recognized 220 labs across India to provide services of testing to a wide range of products and exporters.

APEDA also assists in upgradation and strengthening of recognized laboratories for export testing and residue monitoring plans. APEDA also provides assistance under the financial assistance schemes of infrastructure development, quality improvement and market development for boosting export of agricultural products.

India’s exports of RTE, RTC & RTS (USD million)

	2018-19	2019-20	2020-21	2020-21 (April-October)	2021-22 (April-October)
Ready to Eat (RTE)	766	825	1043	352	394
Ready to Cook (RTC)	473	368	560	206	282
Ready to Serve (RTS)	436	461	511	265	335

Source: DGCIS\

Rubber industry looks to double exports by 2025

The $2-billion non-tyre rubber sector is aiming to double its exports by 2025, according to the All India Rubber Industries Association (AIRIA).

AIRIA president Sawar Dhanania said the global market for rubber products which is estimated at around $212 billion today is also expected to grow by 2025. “Because MSMEs are so important to India’s economy and commerce, we believe that India’s free trade agreements (FTAs) should include provisions to address the special concerns, demands and barriers that MSMEs may face while doing business in foreign markets,” Dhanania said at a meeting of the association in Mumbai.

He said the government should take steps to ensure that the terms of the FTAs benefit the MSMEs for internalisation, with trade facilitation mainstreamed in MSME development goals. “MSMEs can work world-wide by creating a level playing export infrastructure, improving their financing conditions, educating them about suitable marketing channels and facilitating their working with trading companies,” he said.

Shashi Singh, senior vice president of AIRIA, said, “Indian Institute of Foreign Trade (IIFT) and the export promotion councils should educate MSMEs on export procedures, documentation requirements, and the finer points of export.” “We expect IIFT and the EPCs should share export market intelligence and arrange specialist meets. It will be beneficial to individuals who are new to exports and wish to understand how to become export-ready,” Singh said.

“In the last 1-1.5 years, the government released Rs 55,000 crore under MEIS incentives as a reward. There are 13 trade agreements under which 12 are already implemented. Under India and the UAE agreement, 97% of Indian products exported get the direct benefit,” said Ramesh Holiachi, Joint Director General of Foreign Trade.

“The India and Australia agreement is yet to be notified by the Indian government. The Australian government has provided geo-duty concessions to India…. 91-97% of Indian products will get duty concession in the Australian market. Footwear, pharmaceuticals and textile industry in India will benefit from this agreement,” said Holiachi.   

South Korea expands container shipping links to Russia

South Korea has expanded its container shipping links with Russia, the port of Donghae starting a container liner service linking it with far-eastern ports.

Feeder operator Dong Young Shipping will extend its shuttle service between Busan and Vladivostok to include a call at Donghae, on the eastern part of the Korean peninsula.

The revamped  service will start at the end of June, and officials at Donghae say they hope it will revitalise the port and regional development through the growing trade in the northern economic bloc.

South Korea’s primary exports to Russia are used cars, automobile parts, electronics and cosmetics, while coming from Russia are wood pellets, roughage and marine products.

A subsidiary of long-established feeder operator Namsung Shipping, Dong Young launched its Busan-Vladivostok service in June 2021. Currently, it is served by the chartered 650 teu Xiang Ren, but more vessels could be added if response to the extended loop is good.

Meanwhile, Sinotrans Container Lines, part of China’s state-owned China Merchants group, is to launch a container service, the RS1, on 23 May, calling at Shanghai, Busan and Vladivostok with two 700 teu ships, SCO Shanghai and SCO Qingdao.

Tempted by healthy trade between Asia, India and Russia, and unfazed by sanctions, several intra-Asia carriers and start-ups have launched services connecting these regions.

Sanctions against Russia are almost exclusively western and most of Asia has benefited from this by increasing trade with Russia. 

Linerlytica’s latest report says that, as of 15 May, 102 ships, for 107,583 teu, are active in the Russia Far East trade, up from 98 a month ago.

South Korean regional carrier Sinokor Merchant Marine has also maintained its Busan-Vladivostok liner service, Cargoes carried by Sinokor to Vladivostok are then received by Russia’s FESCO and Sakhalin Shipping Company. It has been surmised that if there are no longer ocean freight services between South Korea and Russia, many small and mid-sized South Korean exporters will lose an outlet for their goods.