02.05.23 Daily [Uttar Pradesh] UPPSC Current Affairs

The Uttar Pradesh government is targeting to procure 60 lakh tons of wheat in the Rabi Marketing season 2023-24. Since the minimum support price (MSP) of wheat has been fixed at Rs 2,125 per quintal, the payout to farmers against the targeted purchase is estimated at Rs 12,750 crore.

UP government agencies have so far procured 90,000 MT of wheat at 2,978 procurement centres from 19,000 farmers. The farmers have been paid Rs 130 crore through DBT (direct benefit transfer). The state, together with the (Fci), will procure wheat from the farmers.

Last year, UP wheat procurement was way below the mark against the target of 60 lakh tons since the open market prices were higher than the MSP owing to a surge in the international wheat prices following the Russia-Ukraine war.

Since Russia and Ukraine are among the leading global wheat producers, the conflict affected their wheat supply chains, causing a scarcity of the commodity and stoking prices.

The domestic wheat prices during the last procurement season went north due to the sudden spurt in the export market, prompting India to ban export of the commodity to cool domestic prices and ensure Food Security amid global upheavals.

The global wheat supply chains are fairly stabilised this year, which augurs well for the domestic procurement of the Rabi crop in different states, including UP. Barring the 2022-23 wheat procurement season, which was exacerbated by the Ukraine war, the institutional buying of wheat in UP has been robust over the year

Indias Foreign Exchange reserves increased by$7.196 billionin the week ending May 5, 2023, reaching$595.976 billion, which is an 11-month high. This follows a previous rise of $4.532 billion the week before.Foreign currency assets (FCA)saw the most significant Growth, rising by$6.536 billionto$526.021 billionduring the week.

Gold reservesrose by $659 million to $46.315 billion, while the reserve position at the increased by $139 million to $5.192 billion.

However,Special Drawing Rights (SDRs)decreased by $204 million to $18.447 billion. The Reserve Bank Of India has been intervening in the forex market to curb rupee depreciation through spot and forward positions.

Global E-Commerce exports are poised to grow from $800 billion to $8 trillion by 2030, providing a significant opportunity for Indian businesses to expand their international sales.

Currently, e-commerce exports account for only $2 billion or less than 0.5 per cent of India’s total goods export basket. The country must plan to export $350 billion, or about one-third of its total goods, through e-commerce by 2030, said GTRI.

This will require focus on developing the ecosystem for e-commerce exports. India’s current e-commerce export provisions are a patchwork of rules framed for regular B2B exporters. This creates an enormous compliance burden on small firms, and India needs to address all such issues in one place.

The Indian government should issue a separate e-commerce export policy. E-Commerce policies in China, Korea, Japan, Vietnam, etc., have helped many firms sell globally. As the needs of the e-commerce export sector are vastly different from the regular export sector, the E-commerce Export Policy should be an independent document addressing all pain points faced by exporters. This policy should be jointly issued by the RBI, Customs, and DGFT after making necessary changes to their regulations.

The policy should include provisions for business development, easing regulatory burden, and setting up a national trade Network.

India’s strengths in high-demand customized products, expanding seller base, and higher profit margins per unit of export place it in a prime position to benefit from this trend.

India has a rich tradition of producing bespoke, handcrafted products that are increasingly in demand by discerning customers who value quality and uniqueness over mass-produced goods. Key product groups with high potential for export include handicrafts, jewellery, ethnic wear, decorative paintings, and Ayurveda products.

The Internet, technology, and secure online payments have made exporting via e-commerce simple and safe, enabling small firms from a wide range of cities and regions to participate in international trade. Over 100,000 Indian sellers are already exporting through e-commerce, and this number is set to multiply.

Exporting through e-commerce channels can result in higher profits per unit of export, as businesses can cut out intermediaries like indenting agents, bulk buyers, and shopkeepers.