GOVERNMENT OF INDIA

OUTCOME BUDGET

2012-2013

DEPARTMENT OF COMMERCE MINISTRY OF COMMERCE & INDUSTRY

TABLE OF CONTENTS

Sl. No. Contents Page No.

Executive Summary 1-4

CHAPTER-I Introduction 5-27

CHAPTER-II Financial Outlays and Quantifiable Deliverables –Physical Outputs & Final Outcomes

28-59

CHAPTER-III Reform Measures and Policy Initiatives 60-111

CHAPTER-IV Review of Past Performance 112-175

i. Assistance to States for Development of Export

Infrastructure and Allied Activities(ASIDE)

ii. Special Economic Zones (SEZs)

iii. Tea Board

iv. Coffee Board

v. Rubber Board

vi. Spices Board

vii. Tobacco Board

viii. Marine Products Export Development Authority (MPEDA)

ix. Agricultural and Processed Food Products Export Development Authority (APEDA)

x. Marketing Development Assistance (MDA)

xi. Market Access Initiative (MAI)

xii. National Export Insurance Account (NEIA)

xiii. Price Stabilization Fund Scheme(PSF)

xiv. Crop Insurance Scheme (Proposed) and Other

Initiatives for the Plantation Sector

xv. Footwear Design & Development Institute (FDDI)

xvi. Modernization & Up gradation of DGFT

CHAPTER-V Financial Review 176-183

CHAPTER-VI Review of Performance of Autonomous and Statutory Bodies

184-234

EXECUTIVE SUMMARY The basic role of the Department of Commerce is to facilitate and create an enabling

environment and infrastructure for accelerated growth of India’s international trade. In

consonance with the Government’s vision of making India a major player in world trade,

the Foreign Trade Policy (FTP) is announced in every five years. It provides the basic

policy framework of translating this vision into specific strategies, goals and targets.

Besides, the Department is also entrusted with responsibilities relating to multilateral and

bilateral commercial relations, Special Economic Zones, state trading, export promotion

and trade facilitation, and development and regulation of certain export oriented industries

and commodities. India’s merchandise exports reached a level of US$ 251.14 billion

during 2010-11 registering a growth of 40.49 percent as compared to a negative growth of

3.53 percent during the previous year. India’s export sector has exhibited remarkable

resilience and dynamism in the recent years. Despite the recent setback facted by India’s

export sector due to global slowdown, merchandise exports recorded a Compound

Annual Growth Rate (CAGR) of 20.0 per cent from 2004-05 to 2010-11. Since global

economic outlook is a major determinant of export performance of any country. Export

growth cannot, therefore, be viewed in isolation from economic outlook in the world

economy. Department of Commerce endeavors for doubling merchandise exports in three

years from US $ 251.14 billion in 2010-11 to US $ 500 billion in 2013-14. Exports are

envisaged to increase at compounded average growth of 26.7% per annum. The shares

of top five Principal Commodity Groups in India’s total exports during 2011-12 (April-

October) are Petroleum (Crude & Products) 20.4%, Gems & Jewellery 16.3%, Transport

Equipments 7.8%, Machinery and Instruments 4.6%, Drugs, Pharmcutes & Fine

Chemicals 4.0% & Others 46.9%.

The Outcome Budget is a technique of presenting the budget of the

Ministry/Department in terms of functions, programmes, and activities. The Outcome

Budget 2012-13 of the Department of Commerce highlights the various programmes and

activities undertaken/envisaged to be undertaken by the Department in

furtherance of the core objective of strengthening India’s foreign trade performance in

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the context of the related targets and achievements for 2010-11 and first nine months of

2011-12 and targets set for 2012-13 in terms of financial outlays, physical

outputs/quantifiable deliverables and outcomes.

The Outcome Budget document covers all the developmental activities of the Ministry. It

is intended to highlight the programmes and activities undertaken by the Ministry, targets

and achievements for 2010-11 & 2011-12 (up to December 2011) and target set for 2012-

13, wherever possible. Scheme of chapters in the document is as follows:

Chapter I brings out a brief introductory note on the goals, objectives and functions; the

organizational set up; its mandate and the list of major programmes/ schemes

implemented by the Department.

Chapter II presents the vertical compression and horizontal expansion of Statement of

Budget Estimates. The main objective is to establish a one to one correspondence

between (financial) Budget 2012-13 and Outcome Budget 2012-13. The details comprise

of the financial outlays, projected physical outputs and projected/ budgeted outcomes.

Chapter III highlights the details of reforms measures and policy initiatives undertaken by

the Department and how these relate to the intermediate outputs and final outcomes in

areas such as public private partnership, delivery mechanisms, social and gender

empowerment processes, greater decentralization, transparency etc.

Chapter IV reviews the scheme-wise past performance of the various programmes and

activities undertaken by the Department during 2010-11 and 2011-12 in terms of targets

already set.

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Chapter V deals with financial review covering overall trends in expenditure vis-à-vis

Budget Estimates/Revised Estimates in recent years, including the current year i.e.

2011-12 (scheme-wise, object head wise, and institution wise in the case of

autonomous institutions), and the position of outstanding utilization certificates and

unspent balances with States and implementation agencies.

Chapter VI reviews the performance of the Statutory and Autonomous Bodies under

the administrative control of the Department.

Mechanism and the Public Information System to monitor the physical and

financial progress

The Department has an elaborate monitoring mechanism to watch the progress of

expenditure. Each Administrative Division is provided the guidelines for release of

budget to the implementing agencies. The implementing agencies put in place their

own mechanism for providing assistance to the ultimate beneficiaries to ensure

compliance and monitor the implementation and outcomes. The Department also

monitors execution of the scheme and its impact towards achieving the desired

objectives. Each Administrative Head monitors and reviews the physical and financial

progress of schemes under their charge on a quarterly basis, which is further

supervised and overseen by the Financial Advisor and the Secretary as and when

required.

The Government is committed to facilitate efficiency, transparency and

decentralization of decision making process through intensive use of Information and

Communication Technologies (ICT) based tools. To facilitate quick appraisal of inter-

ministerial and inter-agency trade related matters, an Executive Video Conference

System (EVCS) has been installed in the Department, connecting Secretaries to

Government of India and all Chief Secretaries/Administrators of States/UTs over NIC

network (NICNET). For bilateral and multilateral international negotiations, a Video

Conferencing Studio has been setup in the Ministry of Commerce & Industry. The

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Department's web site (http://commerce.nic.in) is the major source of information

dissemination and provides Government-to-Citizen (G2C) and Government-to-

Business (G2B) interface for electronic delivery of services, trade facilitation and

monitoring various applications. The access to various e-governance and office

automation systems/applications and databases is available to the user in the

Department through an Intranet Portal.

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CHAPTER I

INTRODUCTION

I. Goals & Objectives

The basic role of the Department is to facilitate the creation of an enabling environment

for accelerated growth of international trade. The Department formulates implements

and monitors the Foreign Trade Policy which provides the basic framework of policy

and strategy to be followed for promoting exports and trade. The Trade Policy is

periodically reviewed to incorporate changes necessary to take care of emerging

economic scenarios both in the domestic and international economy. Besides, the

Department is also entrusted with responsibilities relating to multilateral and bilateral

commercial relations, Special Economic Zones, state trading, export promotion & trade

facilitation, and development and regulation of certain export oriented industries and

commodities.

The Department has set a long term vision of making India a major player in world

trade. The macro policy framework of the international trade policies being followed by

the country are guided by this basic vision.

The strategic thrusts of the Department of Commerce programmes are as under:

By using a mix of policy instruments including, fiscal incentives, institutional

changes, enhanced market access across the world and diversification of export

markets, improvement in infrastructure related to exports, reducing transaction

costs and refund of all indirect taxes and levies.

To strengthen export market for leather, gems & jewellery and textile.

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To retain presence and market share in old developed country markets and to

open new vistas, both in terms of markets and new products in the new markets.

To strengthen India’s presence in newly opened up markets in Asia(including

ASEAN), Africa and Latin America.

To build a brand image for important Indian exports.

To promote a thrust for quality up-gradation.

Objectives & Thrust areas of 12th Five Year Plan (2012-17)

Objectives

(i) Rapid increase in exports to balance the Trade Deficit.

(ii) Enhancing the proportion of Manufacturing in the export basket (61.5 percent

at present) to realise higher value addition.

Thrust areas

(i) Strengthening the institutions providing support services to the exporters like

Export Inspection Council (EIC) and Indian Institute of Packaging (IIP).

(ii) Facilitating the provision of critical infrastructure necessary for promoting

exports in collaboration with States through schemes like ASIDE and various

schemes under APEDA and MPEDA.

(iii) Promoting exports of Tea, Coffee, Rubber and Spices through massive

support for schemes administered by Tea Board, Coffee Board, Rubber

Board and Spices Board.

(iv) Strengthening various institutions involved in consultancy, design, human

resource development and information services needed for export promotion

like WTO Centre, Indian Institute of Foreign Trade IIFT), Indian Institute of

Packaging(IIP) and Footwear Design and Development Institute (FDDI).

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(v) Expansion and modernization of infrastructure and quality control

mechanism through up gradation of technology and greater use of IT.

(vi) Introducing new schemes for Gems & Jewellery, Leather and Pharma

Sectors.

II. Organisational Set Up

The Department is headed by a Secretary who is assisted by an Additional Secretary &

Financial Adviser, three Additional Secretaries and thirteen Joint Secretaries and Joint

Secretary level officers and a number of other senior officers.

The Department is functionally organized into the following eight Divisions:

1. Administration and General Division

2. Finance Division

3. Economic Division

4. Trade Policy Division

5. Foreign Trade Territorial Division

6. State Trading & Infrastructure Division

7. Supply Division

8. Plantation Division.

Various offices/organizations under the administrative control of the Department are:

(A) three Attached Offices, (B) eleven Subordinate Offices, (C) ten Autonomous

Bodies, (D) five Public Sector Undertakings, (E) Advisory Bodies, (F) fourteen Export

Promotion Councils and (G) other Organizations. The broad organizational set up and

major role and functions of these bodies are discussed below:

(A) Attached Offices

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(i) Directorate General of Foreign Trade (DGFT)

This Directorate, with headquarters at New Delhi, is headed by the Director General,

an officer of the rank of Additional Secretary. It is responsible for implementing the

Foreign Trade Policy with the main objective of promoting Indian exports. It includes

implementation of various duty neutralization schemes such as Advance Authorization,

Duty Free Import Authorization (DFIA), Duty Entitlement Passbook (DEPB), Deemed

Export Duty Drawback and Terminal Excise Duty (TED) refund, Export Promotion

Capital Goods (EPCG) and incentive schemes like Focus Market, Focus Product,

Vishesh Krishi & Gram Udyog Yojana and Served from India.

DGFT through its various offices provides facilitation to exporters in regard to

developments in the area of international trade, to help the exporters strategize their

import and export decisions in an internationally dynamic environment. DGFT also

issues authorisations to exporters/importers and monitors their corresponding

obligations through a network of 35 Regional Offices.

(ii) Directorate General of Supplies and Disposal (DGS&D)

The DGS&D, with headquarters at New Delhi, is headed by the Director

General an officer of the rank of Additional Secretary. It functions as the

executive arm of the Supply Division of the Department of Commerce for

conclusion of rate contracts for common user items, procurement of stores

and inspection of stores, shipment and clearance of imported stores/cargo.

It has four Regional Offices located at Chennai, Hyderabad, Mumbai and

Kolkata. The functions of DGS&D are carried out through its functional

wings and supporting service wings.

(iii) Directorate General of Anti-Dumping & Allied Duties (DGAD)

The Directorate General of Anti-Dumping & Allied Duties was constituted in April,

1998 and is headed by the Designated Authority of the level of Additional Secretary

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to the Government of India who is assisted by a Joint Secretary and an Adviser (Cost)

and an Additional Economic Adviser. Besides, there are twelve Investigating and

Costing Officers to conduct investigations. The Directorate is responsible for carrying

out investigations and for recommending, where required, under the Customs Tariff

Act, the amount of anti-dumping duty/countervailing duty on the identified articles which

would be adequate to remove injury to the domestic industry.

(B) Subordinate Offices

i. Directorate General of Commercial Intelligence and Statistics (DGCI&S)

The Directorate General of Commercial Intelligence & Statistics (DGCI&S) is the

premier organization of Government of India for collection, compilation and

dissemination of India’s trade statistics and commercial information. This Directorate,

with its office located at Kolkata, is headed by the Director General. The foreign trade

data generated by the Directorate are disseminated through (i) Monthly Press Release

brought out every month by the Ministry of Commerce and Industry, (ii) Monthly

Foreign Trade Statistics of India by Principal Commodities & Countries, (iii) Monthly

Statistics of Foreign Trade of India (Import & Export), and (iv) Quarterly Statistics of

Foreign Trade of India by Countries. The Directorate brings out a number of

publications on, inter alia, inland and coastal trade statistics, revenue statistics,

shipping & air cargo statistics. The dynamic pages of the DGCI&S website

www.dgciskol.nic.in are mainly for online data transmission and provide access to data

under PIS (Priced Information System).

(ii) Office of Development Commissioner of Special Economic Zones (SEZs)

The main objectives of the SEZ Scheme are generation of additional economic activity,

promotion of exports of goods and services, promotion of investment from domestic

and foreign sources, creation of employment opportunities along with the

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development of infrastructure facilities. All laws of India are applicable in SEZs unless

specifically exempted as per the SEZ Act/ Rules. Each Zone is headed by a

Development Commissioner and is administered as per the SEZ Act, 2005 and SEZ

Rules, 2006. There are currently twelve Development Commissioners of SEZs. Units

may be set up in the SEZ for manufacturing, trading or for service activity. The units in

the SEZ have to be net foreign exchange earners but they are not subjected to any

predetermined value addition or minimum export performance requirements. Sales in

the Domestic Tariff Area from the SEZ units are treated as if the goods are being

imported and are subject to payment of applicable customs duties.

(iii) Pay and Accounts Office (Supply)

The payment and accounting functions of Supply Division, including those of DGS&D,

are performed by the Chief Controller of Accounts (CCA) under the Departmentalized

Accounting System. Payment to suppliers across the country is made through this

organization at its headquarters in New Delhi and regional offices situated in Kolkata,

Mumbai and Chennai. Internal Audit functions are also carried out in respect of 9

CDDO and 16 non CDDO situated at various locations in the country.

(iv) Pay and Accounts Office (Commerce & Textiles)

The Pay and Accounts Office, common to both the Department of Commerce and the

Ministry of Textiles, is responsible for the payment of claims, accounting of transactions

and other related matters through the four Departmental Pay & Accounts Offices in

Delhi, two in Mumbai, two in Kolkata and two in Chennai. These Departmental Pay

and Accounts Offices are controlled by the Principal Accounts Office at Delhi with the

Chief Controller of Accounts (CCA) as the Head of the Department of the Accounts

Wing.

C) Autonomous Bodies

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(i) Coffee Board

The Coffee Board is a statutory organisation constituted under Section (4) of the Coffee

Act, 1942 and functions under the administrative control of the Ministry of Commerce

and Industry, Government of India. The Board is headed by a Chairperson, an officer

of the rank of Joint Secretary. The Board is mainly focusing its activities in the areas of

research, extension, development, quality upgradation, economic & market

intelligence, external & internal promotion and labour welfare. The Board has a Central

Coffee Research Institute at Balehonnur (Karnataka) and Regional Coffee Research

Stations at Chettalli (Karnataka), Chundale(Kerala), Thandigudi(Tamil Nadu),

R.V.Nagar (Andhra Pradesh), Diphu (Assam) and bio-technology centre at Mysore,

apart from the extension offices located in coffee growing regions of Karnataka, Kerala,

Tamil Nadu, Andhra Pradesh, Orissa and North Eastern Region.

(ii) Rubber Board

The Rubber Board was set up under Section (4) of the Rubber Act, 1947. The

Chairperson is the Chief Executive Officer of the Board (an officer of the rank of Joint

Secretary) and its headquarters is located at Kottayam in Kerala. The Board is

responsible for the development of the rubber industry in the country by way of

assisting and encouraging scientific, technical and economic research; providing

training to growers in improved methods of planting, cultivation, manuring, spraying,

harvesting; improving processing and marketing of rubber; and collecting statistics from

the owners of estates, dealers, processors and rubber product manufacturers. It is also

the function of the Board to secure better working conditions and provide/improve

amenities and incentives to rubber plantation workers. The Board has nine

departments, viz., Administration, Rubber Production, Research, Processing & Product

Development, Statistics & Planning, Finance & Accounts, Training, Market Promotion

and Licensing & Excise Duty.

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(iii) Tea Board

The Tea Board is an autonomous body under the Ministry of Commerce & Industry,

Government of India, set up as a statutory body on 1st April, 1954 as per provision

under Section (4) of the Tea Act, 1953. It is an apex body, which looks after the overall

interests of the tea industry. The Board is headed by a Chairperson (an officer of the

rank of Joint Secretary) and there are other 30 Members representing the

Parliament(3), owners of tea estates(8), Governments of principal tea growing

states(6), workers unions(5), Manufacturers of tea(2), consumers(2) and other

interest(2). The Board’s Head Office is situated in Kolkata and there are 17 regional/

sub-regional offices throughout India. It has also three overseas offices at London,

Moscow and Dubai whose activities are mostly promotional in nature. Tea Board has

wide functions and responsibilities which include measures for development of the tea

industry, extending financial and technical assistance to the tea growers,

manufacturers and producers, export promotion and domestic generic promotion,

regulating and controlling different marketing activities including that of tea auctions,

facilitating R&D activities, market liaison, assistance to labour welfare activities,

maintenance of statistical data, etc.

(iv) Tobacco Board

The Tobacco Board was constituted as a statutory body on 1st January, 1976 under

Section (4) of the Tobacco Act, 1975. The Board is headed by a Chairperson (an

officer of the rank of Joint Secretary) with 25 other members, and its headquarters at

Guntur, Andhra Pradesh. The Board is responsible for the development & regulation of

the tobacco industry. The Board also has a Directorate of Auctions at Bangalore and

18 auction platforms across the states of Andhra Pradesh and Karnataka. The primary

functions of the Board include regulating the production and curing of Virginia Tobacco;

keeping a constant watch on the Virginia Tobacco market in India and abroad; ensuring

fair and remunerative prices to growers; maintaining and improving

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existing markets and developing new markets abroad by devising appropriate

marketing strategies. The Board is entrusted with the task of recommending to the

Central Government the minimum prices that may be fixed; regulating tobacco

marketing in India with due regard to the interest of growers, manufacturers and

dealers; propagating information useful to growers, traders and manufacturers and

purchasing Virginia Tobacco from the growers when the same is considered necessary

for protecting the interests of growers.

(v) Spices Board

The Spices Board was constituted as a Statutory Body on 26th February, 1987 under

Section (3) of the Spices Board Act, 1986. The Board is headed by a Chairperson (an

officer of the rank of Joint Secretary) with its Head Office at Kochi and is responsible

for the development of cardamom industry and promoting the export of all the 52

spices listed in the schedule of the Spices Board Act, 1986. The primary functions of

the Board include increasing production development of small and large cardamom;

development, promotion and regulation of export of spices(like setting up of spices

parks, support of infrastructure improvement in spices processing etc.); assisting and

encouraging studies and research for improvement of processing, grading and

packaging of spices; striving towards stabilization of prices of spices for export and

controlling and upgrading quality for export (including setting up of regional quality

evaluation labs and training centers). With regard to cardamom; monitoring prices;

increasing domestic consumption; improving marketing; issue of license to auctioneers

and dealers, conducting electronic auction for cardamom; undertaking/assisting or

encouraging scientific, technological and economic research and improving quality.

The Board also implements programmes for development of spices in North Eastern

region and organic spices in the country. It also supports programmes aimed at better

post harvest practices.

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(vi) The Marine Products Export Development Authority (MPEDA)

The Marine Products Export Development Authority was set up as a Statutory Body in

1972 under an Act of Parliament (No.13 of 1972). The Authority, with its headquarters

at Kochi and field offices in all the maritime states of India, is headed by a

Chairperson. The Authority is responsible for development of the marine industry with

special focus on marine exports. Besides, it has trade promotion offices in Tokyo

(Japan) and New York (USA).

(vii) Agricultural and Processed Food Products Export Development Authority

(APEDA)

The Agricultural and Processed Food Products Export Development Authority (APEDA)

was established in 1986 as a Statutory Body under an Act of Parliament. The Authority,

with its headquarters at New Delhi, is headed by a Chairperson. The Authority has five

Regional Offices at Guwahati, Hyderabad, Kolkata, Bangalore & Mumbai and is

entrusted with the task of promoting agricultural exports, including the export of

processed foods in value added form. APEDA has also been entrusted with monitoring

of export of 14 agricultural and processed food product groups listed in the Schedule to

the APEDA Act. APEDA has been actively engaged in the development of markets

besides upgradation of infrastructure and quality to promote the export of agro

products. In its endeavour to promote agro products, APEDA provides financial

assistance to the registered exporters under its Schemes for Market Development,

Infrastructure Development, Quality Development, Research & Development and

Transport Assistance.

Mechanism for monitoring financial assistance schemes:

The financial assistance, under the schemes, is provided on reminursement

basis to the exporters.

The claims are duly supported with invoices, project reports, financial status

reports and C.A. certificates etc.

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The proposals are evaluated by the technical committee before

recommendations for approval.

Before the release of the claims, the assets created under the schemes are

physically verified by APEDA officials to ensure that the assets have been

created as per the “in principle” approval accorded by APEDA.

(viii) Export Inspection Council (EIC)

The Export Inspection Council was set up as a Statutory Body on 1st January, 1964

under Section 3 of the Export (Quality Control and Inspection) Act, 1963 to ensure

sound development of export trade of India through quality control and inspection and

for matters connected therewith. The Council is an advisory body to the Central

Government, with its office located at New Delhi and is headed by a Chairperson. The

Executive Head of the EIC is the Director of Inspection & Quality by Control who is

responsible for the enforcement of quality control and compulsory pre-shipment

inspection of various commodities meant for export and notified the Government under

the Export (Quality Control and Inspection) Act, 1963. The Council is assisted in its

functions by the Export Inspection Agencies (EIAs), which are field organizations

located at Chennai, Delhi, Kochi, Kolkata and Mumbai. These EIAs have a network of

twenty nine sub-offices located at different ports or major industrial centers and four

state-of-the-art laboratories with the required logistic support for the pre-shipment

inspection and certification activities.

(ix) Indian Institute of Foreign Trade (IIFT)

Indian Institute of Foreign Trade (IIFT) is a Society registered under the

Societies Registration Act XXI of 1860 (Punjab Amendment) Act of 1957 and functions

under the aegis of Ministry of Commerce, Govt. of India. The Institute came into

existence on 2nd May 1963 and was granted Deemed University status by

Ministry of HRD in 2002. Over the years, the Institute has attained the status of

premier institution for imparting education in the field of International Business. The

Institute is currently operating from its campus in Delhi and leased Centre at Kolkata.

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Construction of permanent campus at Kolkata is going-on on the land allotted by

Government of West Bengal.

The Institute was set up as an autonomous organization to help professionalize

country’s foreign trade management and increase exports by developing human

resources; generating, analyzing and disseminating data; and conducting research.

Apart from offering MBA level education in the field of International business, the

Institute is also involved in the research activity and consultancy for studies in the field

of international business on behalf / and for Ministry of Commerce. Apart from this the

Institute also conducts management development programs on topics related to

international business and trade. From these activities the Institute generates

resources for partly meeting its expenditure.

(x) Indian Institute of Packaging (IIP)

The Indian Institute of Packaging (IIP), Mumbai was set up in 1966 by the packaging

fraternity in association with the Ministry of Commerce & Industry. The primary

objective of the Institute is to stimulate consciousness of good packaging; undertake

and promote R&D in packaging technology and package design, provide short-term

and long-term educational and training programme in packaging technology. IIP also

organizes seminars and conferences in collaboration with different

Ministries/Departments of the Government, and industry associations. The Institute has

its regional branches in Delhi, Kolkata, Chennai, and Hyderabad. The Institute has also

planned to set up its branches at Ahemedabad an North East under the 12th five year

plan.

(D) Public Sector Undertakings (PSUs)

(i) State Trading Corporation of India Limited (STC)

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STC was set up on 18th May, 1956, primarily with a view to undertake trade with East

European Countries and to supplement the efforts of private trade and industry in

developing exports from the country. STC has played an important role in country’s

economy by arranging imports of essential items of mass consumption (such as wheat,

pulses, sugar, etc.) into India and developing exports of a large number of items from

India. The core strength of STC lies in handling exports/ imports of bulk agro

commodities. During the past 4-5 years, STC has diversified into exports of steel raw

materials, gold jewellery and imports of bullion, hydrocarbons, minerals, metals,

fertilizers, petro-chemicals, etc.

STCL Ltd., having its headquarters at Bangalore, is a subsidiary of STC. It was initially

established in 1982 as Cardamom Trading Corporation Ltd., a Government of India

undertaking under the Ministry of Commerce & Industry. The company diversified its

trading activities from cardamom to spices to become Spices Trading Corporation Ltd.,

in 1987. With globalization and opening of trade world over, the Spices Trading

Corporation Ltd. was renamed as STCL Ltd. STCL became a wholly owned subsidiary

of the State Trading Corporation of India Ltd. in 1999. STCL is involved in trading of

spices, value added spice products, agricultural commodities, fertilizers and

pesticides. The CMD of STC is the Chairperson of STCL Ltd.

(ii) MMTC Limited

The MMTC Limited (Minerals and Metals Trading Corporation) was created in 1963 as

an individual entity on separation from State Trading Corporation of India Ltd. primarily

to deal in exports of minerals and ores and imports of non-ferrous metals. In 1970,

MMTC took over imports of fertilizer raw materials and finished fertilizers. Over the

years import and export of various other items like steel, diamonds, bullion, etc. were

progressively added to the portfolio of the company. Keeping pace with the national

economic development, MMTC has grown over the years to become the largest trading

organization in India.

(iv) PEC Limited

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The Project and Equipment Corporation of India Ltd. (PEC) was carved out of the STC

in 1971-72 to take over the canalized business of STC’s railway equipment division, to

diversify into turn-key projects especially outside India and to aid and assist in

promotion of exports of Indian engineering equipment. With effect from 23rd May,

1990, PEC became a subsidiary of the then newly formed Holding Company, Bharat

Business International Ltd. Thereafter, from 27th March, 1991, PEC became an

independent company directly owned by Government of India. The main functions of

PEC Ltd. includes export of projects, engineering equipment and manufactured goods,

defence equipment & stores; import of industrial raw materials, bullion and agro

commodities; consolidation of existing lines of business and simultaneously developing

new products and new markets; diversification in export of non-engineering items eg.

coal & coke, iron ore, edible oils, steel scraps, etc.; and structuring counter trade/

special trading arrangements for further exports.

(iv) Export Credit Guarantee Corporation of India Limited (ECGC)

The Corporation was established in 1957 as the Export Risk Insurance Corporation of

India Ltd. Keeping in view the wider role played by the Corporation, the name was

changed to Export Credit Guarantee Corporation of India Ltd. (ECGC). ECGC is the

premier organization in the country which offers credit risk insurance cover to

exporters, banks, etc. The primary objective of the Corporation is to promote country’s

exports by covering the risk of export on credit. It provides; (a) a range of insurance

covers to Indian exporters against the risk of non-realization of export proceeds due to

commercial or political causes and (b) different types of guarantees to banks and other

financial institutions to enable them to extend credit facilities to exporters on liberal

basis.

(v) India Trade Promotion Organization (ITPO)

Following the merger of the Trade Fair Authority of India (TFAI) and the Trade

Development Authority (TDA), India Trade Promotion Organisation (ITPO) came into

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existence in 1992. ITPO is the premier trade promotion agency of India and provides a

broad spectrum of services to trade and industry so as to promote India’s exports.

These services include organisation of trade fairs in India and abroad, Buyer-Seller

Meets and Contact Promotion Programmes apart from information dissemination on

products and markets. With its Headquarters at Pragati Maidan, New Delhi and

regional offices at Bangalore, Chennai, Kolkata and Mumbai, ITPO ensures

representative participation of trade and industry from different regions of the country in

its events in India and abroad

(E) Export Promotion Councils (EPCs)

Presently, there are fourteen Export Promotion Councils under the administrative

control of the Department of Commerce. These Councils are registered as non-profit

organizations under the Companies Act/ Societies Registration Act. The Councils

perform both advisory and executive functions. The role and functions of these

Councils are guided by the Foreign Trade Policy. These Councils are also the

registering authorities for exporters under the Foreign Trade Policy 2009-14.

(F) Advisory Bodies

(i) Board of Trade (BOT)

The Board of Trade was set up on 5th May, 1989 with a view to provide an effective

mechanism to maintain continuous dialogue with trade and industry in respect of major

developments in the field of International Trade. The Board was reconstituted on 16th

July, 2009 under the Chairpersonship of Commerce & Industry Minister. The Board,

inter-alia, advises the Government on policy measures connected with the Foreign

Trade Policy in order to achieve the objectives of boosting India’s exports.

(ii) Inter State Trade Council

The Inter State Trade Council was set up on 24th June, 2005 with a view to serve as

a mechanism for institutionalized dialogue between the Union and the States in

19

matters relating to trade facilitation and to create a framework for making States

partners in India’s export effort. The Council is represented by Chief Ministers of the

States or State Cabinet Ministers nominated by Chief Ministers, Lt. Governors or

Administrators of the Union Territories or their nominees, Secretaries of the

Departments of Commerce, Revenue, Industrial Policy & Promotion, Agriculture &

Cooperation, Shipping, Road Transport & Highways, Ministries of External Affairs,

Power and Chairperson, Railway Board. It also co-opts the Chairperson-cum-Managing

Director of Export Credit Guarantee Corporation, Managing Director of EXIM Bank,

Deputy Governor of Reserve Bank of India, Chairperson of Agricultural and Processed

Food Products Export Development Authority, Chairperson of Marine Products Export

Development Authority and presidents of CII, FICCI, FIEO, ASSOCHAM and Export

Promotion Council for EOUs/ SEZs.

(G) Other Organizations

(i) Federation of Indian Export Organizations (FIEO)

The Federation of Indian Export Organizations set up in 1965, is an apex body of

various export promotion organizations and institutions with its major regional offices at

Delhi, Mumbai, Chennai and Kolkata. The main objective of FIEO is to render an

integrated package of services to various organizations connected with export

promotion. It provides the content, direction and thrust to India’s global export effort. It

also functions as a primary servicing agency to provide integrated assistance to its

members comprising professional exporting firms holding recognition status granted by

the government, consultancy firms and service providers. The Federation organizes

seminars and arranges participation in various exhibitions in India and abroad. It also

brings out ‘FIEO News’, for creating awareness amongst its member exporters and

importers.

(ii) Indian Council of Arbitration (ICA)

The Indian Council of Arbitration, India’s premier Arbitral Institution, is a society

registered under the Societies Registration Act, 1860 operating on no profit basis,

20

with its head office in New Delhi and eight branches with a pan India network. The

organization originally established in 1965 promotes and administers the use of

alternative dispute resolution mechanisms in commercial disputes. The main objective

of the Council is to promote the knowledge and use of arbitration and provide

arbitration facilities for amicable and quick settlement of commercial disputes with a

view to maintaining the smooth flow of trade, particularly export trade on a sustained

and enduring basis.

(iii) Indian Diamond Institute (IDI)

With the objective of enhancing the quality, design and global competitiveness of the

indian jewellery, the Indian Diamond Institute (IDI) was established as a society in 1978

with its office located at Surat. The Institute is sponsored by the Department of

Commerce and patronized by the Gems and Jewellery Export Promotion Council

(GJEPC). The Institute conducts various diploma and other courses related to

diamond, Gems & Jewellery. The Institute also has certification services for diamonds,

coloured stones and gold jewellery. IDI has a Gem Testing Laboratory, which is ISO

9001:2008 certified. The Institute has an R&D centre, duly recognised by the Scientific

& Industrial Research Organisation (SIRO) under Ministry of Science & Technology,

Government of India. The Institute has been recognized world over as a Diamond

Certification and Grading Laboratory. The Institute also has Sardar Vallabhbhai Patel

Centre of Jewellery Design and Manufacture(SVJDM) & state-of-the-art IDI-City centre

offering advanced courses in jewellery design and manufacture.

(iv) Footwear Design & Development Institute (FDDI)

Footwear Design and Development Institute established in the year 1986 under the

aegis of Ministry of Commerce, Government of India, with an objective to provide one

stop solution to the footwear and leather product industry is the premier institute of

the country. Since more than two decades FDDI is involved in Human Resource

21

Development and providing other technical services such as testing, inspection,

designing, consultancy etc. the Leather and Leather product industry.

FDDI has been sanctioned the following projects as mentioned below by Department of

Commerce, Ministry of Commerce & Industry, Govt. of India under 11th FYP.

Establishment and Up gradation of Workshops, Labs & Classrooms at FDDI,

Noida.

Up gradation and expansion of FDDI, Fursatganj, Rae Bareli, UP.

Establishment of ITSC and Construction of Hostel at FDDI, Noida.

Establishment of International Design Studio at FDDI campus in Fursatganj

(Under ASIDE Scheme).

Establishment of FDDI at Jodhpur.

(v) National Centre for Trade Information (NCTI)

The National Centre for Trade Information (NCTI) was incorporated on 31st March,

1995 as a company under Section 25 of Companies Act, 1956. The company started

functioning w.e.f. March 1996. It has a Board of Directors for administration of its

affairs, which includes representatives from Ministry of Commerce & Industry, National

Informatics Centre (NIC), Indian Institute of Foreign Trade (IIFT), and Directorate

General of Commercial Intelligence & Statistics (DGCI&S).

The ITPO and NIC are co-promoters of the company and have contributed a sum of

Rs.4.00 crore (Rs.2.00 crore each) as Corpus Fund in the equity contribution of the

Company. The ITPO provides fully furnished office space and the NIC provides the

software and hardware against their equity contribution in kind.

The Centre provides value added information in the field of electronic trading

opportunities, live trade leads from World Trade Point Federation (WTPF), trade

data analysis and organized export awareness seminars and updating/uploading

information on its website. It has uploaded on its website 52 issues of Trade Point-India

containing approximately 250 trade leads each week.

22

(v) Price Stabilization Fund Trust

The Price Stabilization Fund (PSF) Scheme was launched by Government of India in

April 2003 against the backdrop of decline in international and domestic prices of tea,

coffee, rubber, and tobacco causing distress to primary growers. The growers of these

commodities were particularly affected due to substantial reduction in unit value

realization for these crops, at times falling below their cost of production. The objective

of the Scheme is to safeguard the interests of the growers of these commodities and

provide financial relief when prices fall below a specified level. The Scheme is being

operationalized through the Price Stabilization Fund Trust.

IV. Mandate of the Department

The mandate of the Department of Commerce is the regulation, development and

promotion of India’s international trade and commerce through formulation of

appropriate international trade and commercial policy and implementation of the

various provisions thereof. The work allocated to Department of Commerce in

accordance with the Allocation of Business Rules, 1961 is given below:

A. International Trade

International Trade and Commercial Policy including tariff and non-tariff barriers.

International Agencies connected with Trade Policy (eg. UNCTAD, ESCAP,

ECA, ECLA, EEC, EFTA, GATT/WTO, ITC and CFC).

International Commodity Agreements other than agreements relating to wheat,

sugar, jute and cotton.

International Customs Tariff Bureau including residuary work relating to the Tariff

Commission.

B. Foreign Trade (Goods & Services)

23

All matters relating to foreign trade.

Import and Export Trade Policy and Control excluding matters relating to -

import of feature films;

export of Indian films- both feature length and shorts; and

Import and distribution of cine-film (unexposed) and other goods.

C. State Trading

Policies of state trading and performance of organizations established for the

purpose and including -

STC Ltd. and its subsidiary STCL Limited; (excluding Handicrafts and

Handlooms Export Corporation and Central Cottage Industries Corporation;

the Tea Trading Corporation of India Limited which are now not its

subsidiaries);

Projects & Equipment Corporation of India Limited (PEC);

India Trade Promotion Organization and its subsidiaries; and

Minerals and Metals Trading Corporation (MMTC) and its subsidiaries.

Production, distribution (for domestic consumption and exports) and

development of plantation crops, tea, coffee, rubber, spices, tobacco and

cashew.

Processing and distribution for domestic consumption and exports of instant tea

and instant coffee:-

(a) Tea Board.

(b) Coffee Board.

(c) Rubber Board.

(d) Spices Board.

(e) Tobacco Board.

D. Management of Certain Services

24

Cadre Management of Indian Trade Service and all matters pertaining to

training, career planning and manpower planning for the service.

Cadre Management of Indian Supply Service and all matters pertaining to

training, career planning and manpower planning for the service.

Cadre Management of Indian Inspection Service and all matters pertaining to

training, career planning and manpower planning for the service.

E. Special Economic Zones

All matters relating to development, operation and maintenance of Special

Economic Zones and units in special economic zones, including export and

import policy, fiscal regime, investment policy, other economic policy and

regulatory framework.

Note: All fiscal concessions and policy issues having financial implications are

decided with the concurrence of the Ministry of Finance or failing such concurrence

with the approval of the Cabinet.

F. Export Products and Industries and Trade Facilitation

Gems and Jewellery.

Matters relating to Export Promotion Board, Board of Trade and International

Trade Advisory Committee.

Matters relating to concerned EPCs/Export Promotion Organizations.

Indian Institute of Foreign Trade and Indian Institute of Packaging.

Indian Diamond Institute and Footwear Design and Development Institute.

Coordination for export infrastructure.

Development and expansion of export production in relation to all commodities,

products, manufacturers and semi-manufacturers including -

agricultural produce within the meaning of the Agricultural Produce (Grading

and Marking) Act, 1937 (1 of 1937);

25

marine products;

Industrial products (engineering goods, chemicals, plastics, leather goods

etc.);

fuels, minerals &mineral products; and

Specific export oriented products including plantation crops, etc. but

excluding jute products and handicrafts.

All organizations and institutions connected with the provision of services

relating to the export effort including -

Export Credit and Export Insurance including ECGC;

Export Inspection Council Standards including Quality Control;

Directorate General of Commercial Intelligence and Statistics; and

Free Trade-Zones.

Projects and programmes for stimulating and assisting the export efforts.

G. Attached and Subordinate Offices

Directorate General of Foreign Trade.

Directorate General of Supplies and Disposals.

Directorate General of Anti-Dumping and Allied Duties and related matters.

Directorate General of Commercial Intelligence and Statistics.

H. Statutory Bodies

Marine Products Export Development Authority.

Agricultural and Processed Food Products Export Development Authority.

I. Miscellaneous

Purchase and inspection of stores for Central Government Ministries/

Departments including their attached and subordinate offices and Union

26

Territories, other than the items of purchase and inspection of stores which are

delegated to other authorities by general or special order.

27

CHAPTER – II

FINANCIAL OUTLAYS AND QUANTIFIABLE DELIVERABLES - PHYSICAL OUTPUTS & FINAL OUTCOMES

For the year 2011-12, an outlay of Rs.6511.58 crore was approved for the various

Plan and Non-Plan schemes of the Department. Out of this, Plan outlay was

Rs.2000.00 crore. The provisional Plan Expenditure (up to 31.12.2011) for the year

2011-12 is estimated at Rs. 1275.73 Crore. As against this, an outlay of Rs 5023.00

crore has been approved for the year 2012-13; consisting of Plan outlay of Rs.2100.00

crore and Non-Plan outlay of Rs. 2923.00 Crore. As export promotion and market

development is the core of the activities of the Department, assistance in the form of

export subsidy, grants and interest subsidy to banks at Rs. 1,300.00 crore constitutes

the bulk of the Non-Plan expenditure. On the Plan side, the Centrally-sponsored

scheme of Assistance to States for the Development of Export Related Infrastructure

and Allied Activities (ASIDE) constitutes the single most important activity accounting

for an outlay of Rs. 800.00 crore.

In addition to the existing schemes, 16 new schemes has been included in the year

2012-13 and in respect of the new schemes token provision has been made. The

scheme-wise details of the financial allocations and the quantifiable

deliverables/outputs for the year 2012-13, wherever possible, are given below in the

tabular form.

28

OUTLAYS, QUANTIFIABLE DELIVERABLES/PHYSICAL OUTPUTS & OUTCOMES

Sl.No.

Name of scheme Objective/outcome Outlay 2012-13 ( Rs. Crore)

Quantifiable/ deliverables/ physical outputs

Processe

s/ timelines

Remarks

Plan Non Plan

IEBR

1 2 3 4 5 6 7

1 Secretariat-Economic Services

The Deptt. is responsible for the formulation & implementation of Foreign Trade Policy, matters relating to multilateral and bilateral commercial relations, state trading, export promotion etc. The provision is for secretariat expenditure of the Department.

4.00 65.57 Exchange of information in a transparent and efficient manner resulting in quicker disposal of work and higher productivity.

2012-13

Administrative expenses

Foreign Trade and Export Promotion

2 Trade Commissioners The Commercial Offices abroad, provide the institutional framework and are meant to promote India’s trade and economic exchanges with the world. The provision is for establishment related expenses of these commercial offices.

112.25 2012-13

Administrative expenses

3 Director General of Foreign Trade

For the administrative expenditure of the head quarter of the O/o DGFT and its 32 regional offices.

87.00 2012-13

Administrative expenses

4 Assistance for Export Promotion and Market Development Export subsidy

Promotion of exports. The activities covered are: (i) Exporters to be given duty drawback; refund of CST & Terminal Excise Duty

(ii) Market Development Assistance 50.00

(iii) Interest subsidy to banks 1000.00

Along with new schemes, achieve targeted growth of exports.

2012-13

5 Development of Free Trade/ EPZs/SEZs

Administrative expenditure of the Special Economic Zones (SEZs)

49.84 Increase exports & generate additional employment

additional funds would

be needed to run new

SEZs

6 ASIDE To create appropriate infrastructure for export growth

800.00

To involve the States / UTs in export efforts by providing incentive-linked assistance to concerned governments and to create appropriate critical infrastructure for the development and growth of exports.

2012-13

7 ECGC To finance increase in equity of ECGC appropriately to meet the capital adequacy norms for providing adequate insurance cover to Indian exporters as exports grow.

100.00

To provide additional insurance cover.

8 NEIA To increase the corpus of NEIA to ensure the availability of credit risk cover for projects and other high value exports.

30.00 To provide credit risk cover to exports to high risk countries.

2012-13

9 MAI To devise & evolve specific strategy for market and products specific studies/surveys

130.00

Assistance for conducting market studies/surveys and assistance to E.P Organisations/T.P. Organisations for trade promotion activities like marketing projects abroad, capacity building, support for statutory compliances etc.

2011-12

10 Export Inspection Council

8.00 2012-13

Export Promotion Quality Control and Inspection Modernization and lab up gradation of EIC EIAs

Computerization of the activities of the organization with a view to bring about transparency and efficiency in the working of the organization.

Upgradation of hardware in a phased manner and procurement of new variants of hardware so as to meet the requirements of the organization.

On- going process Targets envisaged likely to be met by Marc

Nil

Modernization of the organization in terms of latest Office automation equipments & facilities.

Software development and procurement to match the hardware systems

Up-gradation of the labs of EIC/EIAs with state of the art equipment as per requirements of the importing country.

Procurement/Upgradation of office automation equipments for EIC/EIAs Hos/Sos depending upon the requirements.

h 2013

Augmentation of Capabilities of Human Resource and Quality Development Centre (HR & QDC) for Training, Research and Information dissemination for upgrading the quality of India’s Exports

Building up capabilities in terms of procedures, processes, systems, manpower, image, etc for assuring importing countries that products exported meet their health and safety requirements resulting in streamlining exports from India

Training of EIC/EIA officials, certifying bodies and exporters on areas including issue of Certificates of Origin, HACCP, fish certification, testing, etc .

Targets to be met by March, 2013

Implementation of Residue Monitoring plan (RMP) as per requirements of EU.

Implementation of Residue Monitoring Plan (RMP). About 1000 samples proposed to be tested for various parameters for milk, egg, poultry, honey.

Building capabilities of internal human resources as well as for the export community by organizing programmes, seminars, etc.

A total of 30 programmes envisaged during the year (both in-house and external) having about 500 participants

Activities related to the quality consciousness and awareness in Indian industry by way of certification, inspection and implementation of EIC/EIAs certification systems

Activities related to corporate image building; programmes related to quality awareness efforts of EIC/EIAs would be undertaken by EIC like trade fairs, seminars, up-gradation and development of schemes and systems and others.

Development and implementation of MoU/MRAs with India’s trading partners

MoU/ MRAs with India’s trading partners involving recognition of EIC certification are proposed to be discussed with China, Japan, Pakistan, Australia, Israel, Korea and others.

MoU/MRAs are also dependent upon the Priority given by the trading Partners

Land and Building Requirements for EIC/EIAs

Construction of Office complexes and lab facilities with a view to project a clean, neat and quality image to importing governments and also have a lab complex in line with international requirements.

EIC had been allotted a plot of land measuring one acre at Plot No.70, Sector 20 A, Faridabad by HUDA. On which under the first phas it is proposed to Establish an Administrative complex; Lab facility and Training centre for EIC of India and Agency at Delhi.

Targets to met by March 2017

Modernisation & Upgradation

11 DGFT Making DGFT a paperless organisation with a view to reduction in transaction cost and time, full Electronic Data Interchange with its community partners, introduction of digital signature in its operations, issuance and implementation of paperless licences

10.00 No quantification can be made. However, with the ongoing computerization, the applications would be processed online which will lead to more transparent decision making and reduce transaction cost to the exporting community. The achievable results can only be gauged in terms of intangible outcomes. As on date, EEPB, Advance Authorization and EPCG Scheme is completely online. The message exchange between DGFT and Customs for Advance Authorisation and EPCG licences has been implemented for all EDI ports for authorizations issues after 1.4.2009.

2012-13

12 DGCIS 4.65 24.40

Construction of Meeting Hall

All pending works of minor nature to be completed

December, 2012

Strengthening of IT infrastructure, development of application software, Wesbiste, Pilot project of e-commerce in data dissemination etc.

Development of software for both technical and administration wor pilot project as introduction of e-commerce in dissemination, procurement of additional hardware items as per requirement, preparation of PCO etc.

By Marc

h, 2013

Digitization of rare doocument of Commercial Library

Work to be awarded to selected agency, around 10-15 lakhs pages to be digitized.

By Marc

h, 2013

13 FDDI

Establishment and Up gradation of workshops, labs, classrooms at FDDI, Noida Campus

Enhancement of the training capacity at FDD, new skills, Training in Productivity, Leather Goods, Visual Merchandising Lab, Sole Desigining etc.

With the up-gradation of class rooms & workshops, the capacity has been increased by 300 to 350 students per annum to be trained in the various discipline of Footwear Manufacturing and Retailig Management. Upgraded Lab facilities have also shown revenue growth of the testing centre.

Activities completed

Establishment of ITSC/ construction of Hostel at FDDI Noida

To ensure the international standards of training and facility with adequate IT infrastructure and hygienci, safe and conducive enironment and residentiail facility to accormmodate increased capacity of meritorious outstation students from all over country.

0.00 Effective delivery of training at par with international standards and preparation of students of varios discipline to meet the challenges of industry and make them excel efficiently across globe through comprehensive campus wide wireless network system and adequate IT infrastructrue. Overall grooming of the students by providing safe, secure and hygienic, cost effective residential in campus facility for meritorious students for all over country.

Activities completed

Establishment of FDDI at Jodhpur

To extend consultancy servies to the Industry in the area of Design, Technology, Quality, Productivity etc. to make Indian product highly competitive in the market. To build up the competence of the Indian Footwear & Leather Product sector in the most critical area of Design, Development, trend and Fashion forecasting and subsequently enhancing the global performance. To enable India to become a significant player in the world leather market. To creat more employment opprtunities for the country. HRD- to establish a training facility for vocering either segments i.e. managers, retail, merchandising including supervisory level.

37.00 conducting specific as well as long term and short term course as and when required to meet the humance resource requirement of footwear and allied industries for providing consultancy and troubleshooting, Design & sampling services , information and data, infrastructure support to the industry. The construction is in full swing. The admission for one UG and one PG programme have already been completed. Presently the students are accommodated with Rohtak Branch

Branch will be in operation from academic session of 2011.

Upgradation of FDDI Branch at Fursatganj, Rae Bareli

Upgradation of FDDI Branch at Fursatganj equipped with state of art Machineries and world class infrastructure.

Campus fully Operational

14 DGS&D

20.00 76.26

Computerization in DGS&D

15 Coffee Board 115.00

39.80

R & D for Sustainable coffee production

To achieve sustainability in Indian coffee production through R&D support, Transfer of Technology through Extension Centres, Strengthen the Infrastructure of Research & Extension Farms and also by improving labour productivity.

Research support in the form of providing high yielding, disease tolerant plant material, integrated nutrition, pest and disease management and other package of practices. Production target : 332000 MT(P)

2012-13

Transfer of Technology & Capacity building.

To transfer the technical knowledge and skills to enable the coffee growers to achieve improvement in production, productivity & quality of coffee and market competitiveness.

Transfer of technology from lab to land by the Extension Centres through various methods/tools. Estate visits -20000 nos.

2012-13

Development Support Scheme

To extend development support for re-plantation, water augmentation, quality up-gradation & pollution abatement measures.

Providing financial support to the growers for coffee development and infrastructure facilities for improving production, productivity and quality of coffee. Replantation - 1600 ha, WAS-1500 units, QUP-1500 units .

2012-13

Coffee Development programme in NER

To under take coffee development related activities to improve production & productivity in North Eastern Region Development programmes in Non-traditional area

Providing financial support to the growers for coffee development and infrastructure facilities for improving production, productivity and quality of coffee. Expansion/consolidation - -400 Ha. Quality upgradation 100 Units.

2012-13

Coffee Development programme in NTA

To under take coffee development related activities to improve production & productivity in Non-traditional Areas (Andhra & Orissa).

Providing financial support to the growers for coffee development and infrastructure facilities for improving production, productivity and quality of coffee. Expansion/consolidation - -4000 Ha. Quality upgradation 500 Units.

2012-13

Support for Mechanisation of Farm Operations

To provide support to coffee growers to encourage the use of farm machineries to improve productivity and efficiency in carrying out crucial farm operations for coffee in time particularly in the context of farm labour.

Providing subsidy support to growers for procurement of different types of machineries for taking up crucial operations on timely basis & to cope up with labour shortage. Machineries 10000 units

2012-13

Risk manage--ment to growers

To put in place risk management tools; to provide protection to growers from weather related risks.

Providing incentive to growers for Weather Insurance.

2012-13

Market Develop-ment To enhance domestic coffee consumption and carry out market research and intelligence and dissemination of information to stake holders

Participation in Domestic Trade Fairs, Exhibitions,Training programmes for entrepreneurs Market Research & Market Intelligence. Domestic Consumption Target : 120000 MT

2012-13

Support for value addition

To achieve value addition in coffee by supporting small and medium entrepreneurs for setting up quality processing units

Providing support to the processing activities for value addition . No. of Units: 30

2012-13

Export Promotion of coffee

To enhance market share of value added and high value coffees in key overseas markets to augment export earnings and to enhance market share of Indian coffees in far off key international markets.

Participation in international fairsProviding incentives for export of value added and high value coffees.Export Target (P) Qty : 2,30,000 MT Incentive for High value coffee – 6000 MT Incentive for Value Added Coffee – 8000 MT

2012-13

16 RUBBER BOARD 170.00

37.50

Rubber Plantation Development in Traditional RegionsScheme

To increase natural rubber production, productivity enhancement, promotion of extension activities, etc.

Planting 8000 ha XII

Plan (2012-17)

Tribal Rehabilitation Planting

100 ha

Formation & Vitalisation of RPS/ SHG

195 nos.

Constuction/strengthening GPC

40 nos.

Effluent Treatment / Pollution Control for RPS/SHG

40 nos.

Women Empowerment Progamme

300 nos.

Apiculture 2000 nos.

Input supply with price concession

30000 ha

Rubber Agro Management Units

3000 ha

Smoke House/ Biogas plant for smallholders

125 nos.

Generation of quality planting materials

7 lakh nos.

Skill Improvement on Harvesting Technology

4800 tappers

Farm Mechanisation- Chain Saw, Sprayer, Weed Cutter, Rollers etc.

495 nos.

Rubber Plantation Development in Non-Traditional Regions other than North East

Planting 2400 ha

Tribal Rehabilitation Planting

160 ha

Formation & Vitalisation of RPS/ SHG

5 nos.

Constuction/strengthening GPC

1 no.

Effluent Treatment / Pollution Control for RPS/SHG

1 no.

Women Empowerment Progamme

10 nos.

Input supply with price concession

1500 ha

Rubber Agro Management Units

100 ha

Boundary protection 1000 ha

Farm Mechanisation- Sprayer, Rollers etc.

64 nos.

Skill Improvement on Harvesting Technology

1050 tappers

Rubber Plantation Development in North East

To increase natural rubber production, productivity enhancement, promotion of extension activities, etc.

Increase in rubber production with focus on newplanting. Overall development of the NE region and settlement of tribals through planting of rubber.

Planting 7100 ha

Cluster planting 500 ha

Block planting 150 ha

Boundary protection 4000 ha

Model nurseries 5 nos.

Input supply with price concession

4000 ha

Research not quantifiable

Infrastructure development

not quantifiable

Strengthening of Rubber Research (Rubber being a crop with long gestation period, research achievements are not quantifiable. However a few quantifiable parameters are provided.)

To develop agro-technology through research for increasing NR production by enhancing productivity and disease control measures, maintenance of ongoing field experiments for developing HYVs.

Increased availability oflocation specific and grower friendly agronomic practices to enhance productivity and net income, minimise cost of production, reduce the incidence of diseases etc. Enhanced knowledge on scientific aspects related to crop management, improvement, physiology, etc of rubber and rubber technology

a) Cross pollinations

12000

b) Production of hybrid seeds

1500

c) Hybrids under evaluation

2800

d) Testing of soil, leaf, latex, ethephon and rainguarding materials

100000

e) Ongoing laboratory and field trials

600

f) Field visits & advisories given

10000

g) Supply of nucleus planting materials of new clones to farmers

65000

h) Scientific and popular publications

250

Technology Upgradation, Quality Improvement and Product Development of Rubber and Rubber Wood

To develop and strengthen rubber and rubber wood processing sectors to attain international competitiveness in quality and cost, better waste management, adoption of environment-friendly processing practices etc.

Enhanced efficiency of rubber and rubber wood processing sector in terms of high quality, better methods of waste management etc.

Technology Upgradation & Quality Improvement

25

Central Testing Laboratory & Regional Laboratory for Product Testing

2

Demonstration, training & technical support

12

Rubberwood - promotional activities

8

Wood Testing Laboratory

1

FSC certification 2

Market promotion of Rubber & Rubberwood

To strengthen infrastructure and promote marketing of rubber and rubber wood in domestic and international markets

Improvement in marketing rubber and rubber wood. Enhanced acceptance of Indian rubber and rubber wood based products in international market.

a) Support to RPS Companies & Cooperatives

Working Capital Loan for trading of NR

20

Interest subsidy, procurement of containers, transportation of raw material.

36

Grant-in-lieu of share capital

5

Working Capital Loan for trading of Estate Inputs

16

Procurement of Computers, accessories & software

5

Establishment of storage facility and improvements in packaging of rubber

10

Grant of acquiring land & building / construction of building

2

b) Market promotion

Participation in international trade fairs - Rubber & Rubber wood

10

Grant to exporters for participation in trade fairs

12

Financial incentives to exporters for developing publicity materials to be used in trade fairs

12

Participation in domestic fairs/buyer seller meets and trainings on Marketing, Grading and Packing

10

Electronic Weighing Machine to Rubber Dealers.

30

Brand promotion scheme on “Indian Natural Rubber” logo implementation ( in MT)

12000

Market Information & Marketing Research

not quantifiable

Export of NR (Tonnes) 50000

Human Resource Development

To promote HRD in rubber sector, welfare of rubber plantation workers

A well-trained clientele in the rubber sector. Improved living conditions for rubber plantation workers.

Training 4000 participants

Labour Welfare 43190 beneficiaries

Infrastructure development

Development of infrastructure. Adequate infrastructure facilities for effective implementation of other plan schemes. Not Quantifiable.

Statistical and Information Services and E-governance

Provide reliable statistics, updated information and provision of ICT based service interfaces.

Reliable statistics, updated information and ICT based service interfaces.

Statistical publications

14 nos.

Information Services - no. of publications

60 nos.

Exhibitions 8 nos.

Extension / Promotional Advertisements

20 nos.

E-governance not quantifiable

New Schemes

Statistical and Information Services & E-governance

0.01

Niryat Bandu Scheme 0.01 Training/Capacity

Building 0.01

Office/Residetaial

Building 0.01

17 SPICES BOARD 100.00

9.35 Overall production development of cardamom, post harvest & quality improvement of spices and increase in export of spicesExport - Quantity : 570000 Tons Value : 7900.00 Crores

Non-plan for administrative expenditure and Plan to implement central sector schemes

i. Export oriented production and post harvest improvement of spices

To increase production and productivity of cardamom, development of spices in NE, post harvest improvement of spices, organic cultivation of spices

Small Cardamom (to increase productivity & quality of the produce and to counter drought situation)

Increase in productivity and production- Irrigation & land development (6000 ha.) - Rain water harvesting (200 Nos.) - Improved curing devices (500 Nos.)

Availability of equipments for installation and response from farmers with their investment.

Large Cardamom (to increase productivity & quality of the produce and to counter drought situation)

Increase in productivity and production- Rain water harvesting (50 Nos.) - Improved curing devices (75 Nos.)

Other North Eastern Region

Large Cardamom (to increase area under cultivation and production)

New Planting (500 ha.)

Rain water harvesting Rain water harvesting – 20 Nos.Curing house Modified bhatti – 30 Nos.

Lakadong turmeric(Area expansion) New planting (1500 ha.)

Organic ginger (Area expansion) New planting (1500 ha.)

Training of officers & farmers(to improve technical competence)

Officers – 10 Nos.

Other spices

Seed Spices Threshers (20 Nos.) Response from farmers

Pepper (to improve quality) Threshers (400 Nos.) 2012-13

Availability of sufficient number of machines and mat in time

Chilli (to improve quality) IPM (10000 ha.) 2012-13

Turmeric Boilers (20 Nos.) and polishers (10 Nos.)

2012-13

Post harvest improvement of spices(to improve quality

Polythene/Silpaulin sheets (25000 Nos.)

2012-13

Organic Farming(to add value and sustain export)

Certification (20 Nos.)Organic cultivation of spices (1500 ha.)Vermicompost units (1000 Nos.)

2012-13

Extension Advisory Services(to provide technical advice including implementation of export oriented production & post harvest improvement programmes)

Continuing extension advisory services, 25000 visits, 2500 meetings

2012-13

ii. Special purpose fund for replanting and rejuvenation of cardamom plantations

To replant and rejuvenate old & senile plantations

Increase in production & productivity

Small Cardamom Replanting (3500 ha.) Rejuvenation (4500 ha.)

2012-13

Large Cardamom Replanting (4000 ha.) Rejuvenation (2000 ha.)

2012-13

ii. Export development & promotion

To increase export of spices

Infrastructure Improvement Adoption of hitech (5 Nos.) Technology and process upgradation (25 Nos.) Setting up inhouse lab (26 Nos.) Quality certification (16 Nos.)

2012-13

Trade promotion Sending business samples abroad (34 Nos.)Printing brochures (5 Nos.) Packaging development (10 Nos.)

2012-13

Research & product development (to promote development of new end uses in nutritional, pharmaceutical and cosmetics including value addition)

For registered exporters and research institutions (5 Nos.)

2012-13

Promotion of Indian spice brand abroad (to penetrate Indian brands in international markets through retail chain with appropriate packaging and achieve high value)

3 Nos. 2012-13

18 TEA BOARD 200.00

39.00

Overall development of the tea industry in India by providing necessary assistance for research and developmental activities aimed at increasing production, productivity and quality; facilitation of trade and promotion of exports so as to ensure maximum returns to the producers, including small growers, safeguarding the interests of the workers and the consumers; gathering statistical and other relevant data concerning the industry and disseminating the infromation to various segments of the industry, act as the recognized spokesperson on behalf of the tea industry to the Government, media, trade and general public.

Production: 1015 mkg Exports: 196 mkg.

2012-17

Plantation Development Scheme

Productivity improvement through new planting, replanting, rejuvenation pruning & irrigation facilities.

1. New Planting: 500 ha; 2. Replanting: 6000 ha, 3. Rejuvenation : 1000 ha; 4.Self Help Group of Small growers:45 Nos. Productivity improvement through replanting, rejuvenation pruning & consolidation through infilling of vacancies, and creation of irrigation and drainage facilities. Special focus on Small tea gardens for enhancing productivity and quality, new planting in small holdings in hilly areas, encouraging small growers to organize themselves into self help groups/ tea producers societies etc

2012-17

subject to vagaries of weather conditions

2 Quality Upgradation and Product Diversification Scheme including Orthodox production subsidy

To provide financial assistance to needy tea gardens/ factories for augmenting the processing capacity.

Augmenting the processing capacity, creation of new facilities to product diversification like green tea and other speciality teas, setting up of modern blending/ packaging units, installation of orthodox tea manufacturing machinery, and incentive for orthodox production, ISO/HACCP/Organic tea certification for tea manufacturing units/ gardens100 Tea Processing Units for modernisation of . 80million kg production of orthodox tea.

2012-17

Market promotion Scheme

To assist tea producers/exporters for boosing exports through various measures such as fairs/exhibitions etc.

Boosting export through various measures, generic promotion for new tea markets as also for domestic consumption, brand promotion, protection of Intellectual Property Rights(IPRs), 'GI' s strengthening auction system through introduction of appropriate electronic format etc

2012-17

Human Resource Development Scheme

To induct professionalism in plantation management labour productivity, skill improvement etc.

1.Capital grant to hospitals - 10 units; 2. Educational stipened and scholaship grant - 1000 students 3.Capital grant to schools&colleges - 10 units 4. Grant towards Medical equiptment & ambulances - 5 units 5.Bharat Scouts : 500 6.Training: 5000 People

2012-17

Research and Development Scheme

To asist research projects of Tea Research Institutes on quality up-gradation technology transfer for improving productivity value addition and product diversification etc.

Not Quantifiable. Assisting Research Institutes and other recognized Institutes for undertaking research on quality up- gradation, technology transfer for improving productivity, value addition and product diversification, nutrition management, tea and human health, setting up of quality control laboratories etc. Under the Development component - opening of new development offices of the Board for closer interface with small growers in non-traditional areas, strengthening of existing Board’s offices, setting up of nurseries for supply of good quality planting materials for small growers, study tours and workshops for small growers etc

2012-17

Small Growers Development Scheme

0.10

new schemes

Implementation of regulatory provision of Tea Act including e-auction and allied activities

0.10

new schemes

19 MPEDA 110.00

5.00

MARKET PROMOTION

Promotion of Indian Value added Marine Products having MPEDA Quality Logo

This is for promoting the Indian value added marine products having MPEDA logo branded or co-branded products with any of the purchaser/ importer or super markets/ retail chains or who are willig to co-brand Indian marine products with any of the brands abroad.

This scheme is aimed at promotion of value added fish and fishery products, processed/produced in an MPEDA registered processing plant processing a certificate of approval under the Marine Products (Quality Marking) Scheme and thereby carrying the MPEDA Quality logo

Financial assistance for warehousing/transportaion/repacking of marine products abroad

MPEDA propose to reimburse 25% of the expenses incurred for warehousing, transportation and slotting expenses in retail outlets in abroad amd market subject to a maximum of Rs. 25 lakh per exporter.

This scheme shall be able to establish a market and brand image for Indian Marine products in international market.

New scheme

Publicity

Publicity/procurement of public literature/film/souvenir etc.

Dissemination of information among the exporters on import export regulations prevailing in the importing countries, Market trends, etc.

All promotional measures like printing of various publicity literatures, pamphlets, brochures etc highlighting the fishery resources, seafood exporters Directory, Product Catalogue, Recipes, Indian Fishery Handbook, MPEDA Newsletter, New Year Diary, Greeting cards, Planner Fish Charts of commercially important fishes including Ornamental fish, special brochures, graphics, charts etc for display during participation in international as well as in internal fairs are produced with an aim to achieve the objective and to disseminate the information in international fairs in which MPEDA participates. Procurement of gifts meant for distribution to the VIP and major buyers during participation in international fairs as well as to top VIPs and other dignitaries visiting Chairman and Exhibition etc. A short film on achievements and developments of the seafood industry is also proposed.

1 year

Participation in International Fairs.

To strengthen India’s existing markets for Indian seafoods and for exploring new markets. Increase in value added products and achievining a higher export turnover.

1) Increased acceptance of Indian seafood in overseas markets. 2) Strengthening of our existing markets and penetrating into new markets. 3) Increase in export of value added products and hence a higher export turnover.

1 year

IT and Trade Promotion offices

Implement e-governance To promote seafood exports in the respective countries by liaison with Importers & Indian exporters.

Online access to beneficiaries .Increased exports to Japan, US and better trade relations with buyers.

Seafreight Assistance To make India a Seafood processing Hub. To reduce the adverse impact of high freight rates from India. To enable exports of value added products from India.

Continuing Scheme. This is the third implementing year and exporters are eligible for only 50% of assistance they were getting in 1st and 2nd implementing year.

CAPTURE FISHERIES

Promotion of Tuna Fishing

Exploitation of deep sea tuna and other under exploited resources

Conversion of 220 vessels to tuna long liners.

2012-13

Assistance to fishermen for better preservation of catch

By installation of insulated fish hold, RSW and Ice making machines onboard fishing vessels, multiday fishing will be carried out and preserve the catch in better quality and thereby increase the income of fishermen.

Upgradation of 300 boats with insulated / refrigerated fish hold / RSW system and ice making facilities on onboard vessels.

2012-13

Engagement of Technical Consultants & conservation of marine resources.

Training in new technology i.e. monofilament long line fishing and on board handling of tuna. Conservation of marine resources to promote responsible fisheries.

To impart training to fishermen in tuna fishing to increase production from capture fisheries

CULTURE FISHERIES

Development of Hatcheries

Shrimp Health Management, GIS Mapping of shrimp/scampi farms , Assistance to Farmers and Organic farming.

Establishment of an integrated hatchery comprising of in house disease diagnostic laboratory, ETS will increase availability of quality seed to aqua farmers resulting in increased production. To support private entrpreneurs in establishing small scale hatcheries for meeting the requirments of local aqua farmers whose requirement is very less from such hatcheries .

1 year

Continuing scheme with modifications subject to approval of the ministry.

Promotion of Ornamental Fish breeding for exports

To promote production of ornamental fish and provide infrastructure facilities for marketing, create employment generation in rural/semi urban areas.

Setting up of 500 nos. ornamental fish breeding units and market societies.

PROCESSING INFRASTRUCT-URE AND VALUE ADDITION

AssistanceExporters value addition

Promoting the export of ready-to-eat and ready-to-cook value added seafood products and technology upgradation.

29 beneficiaries One Year

NA

Cold Chain for seafood Industry

Maintenance of cold chain right from procurement of raw materials to dispatch of finished products to maintain quality of products

250 beneficiaries One Year

NA

Special Economic Zone To establish Common Facility Centre in SEZ for promotion of processing of value addition items, to make India as a seafood processing hub and to attract FDI in seafood processing industry.

Creation of Common Facility Centre in SEZs at Nellore and at Tuticorin for processing and export of value added seafood products.

QUALITY CONTROL

500.01 MPEDA LABS at Cochin, Bhimavaram., Nellore & Bhubaneswar National Residue Control Plan

To ensure that aquaculture products exported from India meet the regulatory requirements of European Union. To establish a system of corrective action on detection of Residues higher than the permissible limit.

The aquaculture products exported to EU are made free from environmental contiminants and antibacterial substances.

One year.

continuing scheme

Setting up of ELISA Labs

To ensure aquaculture products (shrimp/fish) for the presence of antibiotics resideus like Chloramphenicol & Nitrofuran metabolites before the produce harvested

The aquaculture products exported to EU are made free from environmental contiminants and antibacterial substances.

Quality Upgradation

(1) Assistance for construction/ renovation of Captive Pre-processing centres

Scheme encourages bringing the pre-processing activities under the direct control of the processing units to meet the hygienic standards of the EU/GOI and other importing countries.

The quality of the peeled material will improve. Good number of women workers will get employment

2) Assistance for construction/ renovation of Independent Pre-processing centres

Independent PPC with upgraded facilities helps to eradicate pre-processing activities in unhygienic environments.

The quality of the peeled material will improve.Good number of women workers will get employment

(3) Assistance for setting up of Mini Lab

Scheme helps the processors to implement effective in process control and testing facilities.

The processor will be able to carry out organoleptic and bacteriological analysis of the raw and processed material

20 APEDA 180.0

0 1.00

Development of infrastructure Common facilities (Pack House CPC

facilities including Referal lab, irradiation etc.

28

Transport Unit 12

Seting up of sheds 8 Setting up of Mechanized handling facilities 18

setting up of pre-cooling facilities 1

Water softening plant 4

High Humidity Cold Storage 9 ETP and storage facility 12

Market Development Participation in international fairs Buyer-Seller Meet / visists of international delegations / participation International Fairs in India

20 international trade fairs

Providing financial assistance to exporters

160

Quality Dvelopment Enhancing the quality of agro products

290

Transport Assistance Providing financial assistance to

exporters 240

21 Assistance to

institutions IIFT 40.00

IIP 3.00

Up-gradation of Facilities 2011-12

Indian Institute of Plantation Management (IIPM)

22 Contributions to

international organisations & conferances

World Trade Organization, International Coffee Organization, International Pepper Community, International Trade Centre, Common Fund for Commodities etc.

24.00

23 Other Schemes of

Plantation

Crop Insurance 0.01

To provide subsidy to farmers on annual premium

Price Stabilization Fund For the benefit of growers of tea,

coffee, rubber and tobacco.

0.13

- To provide relief to the growers

when the prices of the Commodities fall below a specified level.

24 Other General

Economic Services Settlment of dues

25 Cashew EPC 1.00 M D A

I. Participation in Exhibitions/Fairs

Identification of new buyers and new markets. Renewing the existing business relations and understanding the latest markets. Renewing the existing business market trends/requirements.relations and understanding the latest market trends/requirements.

7 exhibitions. Approx. 5 -10 exporters expected to participate in each fair. Would also help market penetration and obtain new contacts. Expect-ed to bring more business relationships resullting to increased exports and employ-ment generation.

Outcomes in terms of improved exports would be visible only subsequently.

II. Sponsoring Trade Delegation to Abroad

Understanding the market requirements,operation of competitors and to have direct dialogue with buyers thereby promoting exports to these markets.

One delegation About 10 Exporters are expected to participate in the delegation. The visiting team can have on-the spot study of these markets. The team will have meetings /interactions with importers and senior officials of our Missions abroad.

III. Bringing out

Publications / Publicity materials with Focus on Export Promotion

Creating awareness about latest trade news and market movements among the industry. Providing information to the international buyers about our products, availability, capacity to deliver, etc.

Cashew Bulletin (monthly) and Indian Cashew Journal (quarterly) and other issues like Exporters Directory, Export/Import Statistics, etc.

IV. Organizing

Awareness Seminars/ Workshops/Training Programme

Create/update awareness on various matters connected with the industry, like quality standards, tariff/non-tariff issues, trade requirements, world market scenario, etc.

1) Participation in AFI convention 2) Organising awareness seminars in India - 4 Nos. 3) Participation in UN/ECE Specia- lised Session on standardisation of dry and dried products.

V) Database Updation Providing On-line information facility to exporter-members and trade worldover to facilitate improved business. To enable easy and better communication and understanding of trade.

Timely updation of trade statistics, Dis-semination of current market information and On-line of issuance of RCMC.

M A I 1) Participation in

International Food Fairs For participation in major food fairs in General Areas thereby by identification of new buyers and new markets.

One exhibition

2) Conducting Reverse

Buyer-Seller Identification of new buyers and for direct interaction with buyers and sellers thereby promoting exports

one event

3) Participating in

Global Cashew Task Force

Working in close cooperation with our cashew producing countries like Vietnam, Brazil, etc. and International Nut Council with a view to promote global consum-ption of cashews.

Participation in meetings of the Global Cashew Task Force. Research and study of nutritional/health benefits of cashews.

4) Multidimensional

Dynamic Commercial Portal

Provide on line information on statistics, market, etc. Facilitate on line training on new packaging, quality requirements, cultivation, storage, etc.

Create a multi dynamic commercial portal for Indian Cashew.

26 Centre for WTO Studies To Develop the Centre as an expert

body for providing inputs on various trade policy issues.To Provide institutional mechanism for coordinating domestic stakeholders' consultations. To develop the Cente for training activities.

7.00

Physical deliverables are not quantifiable as the outlay is need based.

27 Others

To meet the Plan &

Non-Plan expenditure of various other schemes

1.40

-International conferences and the expenditure on foreign delegation etc.

0.50

Convention centre in Mumbai

0.01

new schemes

Common facility centre

0.01

new schemes

Gem bourse in Jaipur

0.01

new schemes

Gems & Jewellery Park in Mumbai

0.01

new schemes

Jewellery Sector

0.01

new schemes

New branches of FDDI

30.01

new schemes

Networking Centre(FDDI CNC)

0.01

new schemes

Creation of venture capital fund for corporisation of leath sector creation of seed fund

0.01

new schemes

for pharma through a venture capital fund

0.01

new schemes

Boisimilar/bioequivalent studies to 0.01

new schemes

Grand Total 2100.00 2923.00

CHAPTER III

REFORM MEASURES AND POLICY INITIATIVES

Policy making is a dynamic and continuous process involving necessary periodic

interventions with a view to achieving the stated objectives and to fulfill the desired

goals. Sustained accelerated growth of exports and trade is the primary goal being

followed by the Department of Commerce. Since global economic outlook is a major

determinant of export performance of any country. Export growth cannot, therefore,

be viewed in isolation from economic outlook in the world economy. Department of

Commerce endeavors for doubling merchandise exports in three years from US $

251.14 billion in 2010-11 to US $ 500 billion in 2013-14. Exports are envisaged to

increase at compounded average growth of 26.7% per annum. The shares of top

five Principal Commodity Groups in India’s total exports during 2011-12 (April-

October) are Petroleum (Crude & Products) 20.4%, Gems & Jewellery 16.3%,

Transport Equipments 7.8%, Machinery and Instruments 4.6%, Drugs, Pharmcutes

& Fine Chemicals 4.0% & Others 46.9%.In consonance with the Government’s

vision of making India a major player in the world trade, the Foreign Trade Policy

(FTP) is announced every five years that provides the basic policy framework of

translating this vision into specific strategies, goals and targets and since has been

reviewed on 13.10.2011 in order to boost and expand the export and the following

initiatives has been taken:

The objectives of the Foreign Trade Policy (FTP),2004-09 was doubling of India’s

share in global trade in the next five years and making trade an effective instrument

of economic growth by giving a thrust to employment generation. The Policy, with

clearly enunciated objectives and strategies and necessary initiatives taken by the

Government during the last five years, has been very effective in putting India’s

exports on a higher growth trajectory. The Indian exports grew from US$ 83.5

billion in 2004-05 to US$ 185.3 billion in 2008-09, registering an average

60

annual growth rate of about 24%. As far as giving special thrust to employment

generation is concerned, sectors with significant export potential coupled with

employment generation in semi-urban and rural areas were identified and specific

sectoral strategies were prepared.

The Foreign Trade Policy (FTP), 2009-14 was announced by the Government on

27th August, 2009. The new Policy was unveiled in the backdrop of unprecedented

economic slow-down and one of the most severe global recessions in the post-war

period that affected countries across the globe in varying degrees. The short term

objective of FTP (2009-14) is to arrest and reverse the declining trend of exports

and to provide additional support especially to those sectors which have been hit

badly by recession in the developed world. The Policy also aims to achieve an

annual export growth of 15% with an annual export target of US$ 200 billion by

March, 2011.

The medium/long term objectives of the Policy include:

(i) Achieving an export growth of about 25% per annum in the remaining

three years of the FTP (2009-14).

(ii) Doubling of India’s exports of goods and services by 2014.

(iii) Doubling of India’s share in global trade by 2020.

Trade Policy Measures taken by the Government in 2009-10 and 2010-11

focused on reviving exports and exports related employment. Many measures

were undertaken at the time of release of the FTP, 2009-14, announcements

made in January / March, 2010 and in the Annual Supplement to FTP released

in August, 2010.

Additional measures were taken on 11.2.2011 to help the exports sector in general

and the employment intensive sectors effected by the World recession, in

particular. Export incentives were announced for more than 600 products (in

61

respect of their exports with effect from 1/1/2011) in labour intensive and / or

technology intensive sectors like agriculture, chemicals, carpets, engineering,

electronics and plastics to enhance their competitiveness.

Some of these measures undertaken in the FTP, 2009-14 and thereafter are

given in Box 3.1.

Box 3.1 Trade Policy Measures taken under Foreign Trade Policy 2009-14

and thereafter A. Market and product diversification and expansion of markets:

I. Measures undertaken in FTP 2009-14, January / March, 2010 and in Annual Supplement, 2010-11:

27 new markets added under Focus Market Scheme (FMS) with incentive

of duty credit scrip @ 3% of exports.

Market Linked Focus Product Scheme (MLFPS) with incentive of duty

credit scrip @ 2%, has been significantly broadened by inclusion of a

large number of products linked to their markets.

Full Africa, Latin America and large part of Oceania covered under FMS &

MLFPS (13 countries added in MLFPS at the time of release of FTP,

2009-14 in August, 2009 and 2 countries added in January, 2010).

The incentive available under FMS has been raised from 2.5% to 3%; and

for Focus Product Scheme (FPS) & MLFPS from 1.25% to 2%; and

Special Focus Products Scheme @ 5%.

Additional benefit of 2% bonus, over and above the existing benefits of

5% / 2% under FPS, allowed for about 135 existing products, which had

suffered due to recession in exports. Major sectors include all Handicrafts

items, Silk Carpets, Toys and Sports Goods (all of which were earlier

eligible for 5% benefits), Leather Products and Leather Footwear,

Handloom Products and some of the Engineering Items including Bicycle

parts and Grinding Media Balls (all of which were earlier eligible for 2%

benefit).

256 new products added under FPS (at 8 digit level), which became

entitled for benefits @ 2% of FOB value of exports to all markets. Major

Sectors / Product Groups covered are Engineering, Electronics, Rubber &

Rubber Products, Other Oil Meals, Finished Leather, Packaged Coconut

Water and Coconut Shell worked items.

Instant Tea and CSNL Cardinol included for benefits under Vishesh Krishi

and Gram Udyog Yojana (VKGUY) @ 5% of FOB value of exports.

Nearly 300 products (at 8 digit level) from the readymade garment sector

incentivised under MLFPS for further 6 months from October, 2010 to

March, 2011 for exports to 27 EU countries.

II. Additional measures announced on 11th February, 2011: Under Market Linked Focus Product Scheme (MLFPS):-

1. 335 New Products incentivised under MLFPS at 8 digit level, eligible

for benefits @ 2% of FOB value of exports to 15 specified markets like

Agricultural Tractors of more than 1800 cc, all inorganic chemicals and

inorganic / organic compounds of metals, Flexible Intermediate Bulk

Containers and Narrow Woven Fabrics;

2. 71 new products of Chapter 63 (Textile Made ups) at 8 digit level for

exports to EU (27 Countries).

Under Focus Product Scheme (FPS):-

1. 147 products incentivised for Bonus Benefits (additional 2%) under

FPS at 8 digit level, henceforth eligible for benefits @ 4% or 7% of

FOB value of exports to all markets. These includes Engineering

items, Electronic items, Stationery items, Handmade carpets and other

Floor Coverings under Chapter 57 (7%);

2. 57 New products incentivised under FPS at 8 digit level, eligible for

benefits @ 2% of FOB value of exports to all markets. These include

products from Sectors viz. Engineering, Chemical, paper products etc.

Under Special Focus Products Scheme (SFPS), Egg powder included for

benefit @ 5% of FOB value of exports.

Under Vishesh Krishi and Gram Udyog Yojana (VKGUY), 6 New products

(Castor Oil Meal – Defatted Variety and Instant Coffee) incentivised under

VKGUY at 8 digit level, eligible for benefits @ 5% of FOB value of exports

to all markets.

B. Support for Technological up-gradation

Zero duty Export Promotion Capital Goods (EPCG) scheme and Status

Holder Incentive Scrip (SHIS) scheme introduced in 2009 for limited

sectors and valid for only 2 years initially, extended by one more year till

31.3.2012 and the benefit of the scheme expanded to additional sectors.

3 Additional Towns of Export Excellence (TEEs) announced, bringing the

list upto 24.

C. Availability of concessional Export Credit:

Interest subvention of 2 per cent extended upto March 2011 for certain

labour-intensive sectors of exports namely handloom, handicrafts, carpet,

SMEs and a few products from the sectors namely engineering, textiles,

leather and jute.

Interest rates on export credit in foreign currency reduced to LIBOR + 200

basis points in February 2010 from the earlier LIBOR+350 basis points.

D. EOUs / STPIs:

Section 10A and 10B (Sunset clauses for STPI and EOU schemes

respectively), extended for the financial year 2010-2011. Anomaly

removed in Section 10AA relating to taxation benefit of ‘unit vis-à-vis

assessee’.

E. Services:

FTP also provided fillip to services sector (Hotels) by doubling duty

free entitlement under Served From India Scheme (SFIS) from 5%

to 10% of foreign exchange earnings.

F. Others:

Duty Entitlement Passbook (DEPB) scheme extended beyond

31.12.2010 till 30.06.2011.

Time period of export realization for non-status holder exporters

increased to 12 months, at par with the Status holders. This facility

has been extended upto 31.3.2011.

Advance Authorization for Annual Requirement now exempted from

payment of Anti-dumping & Safeguard duty. The Scheme has been

made more flexible for import of required inputs.

Value limit on duty free import of commercial samples enhanced

from Rs. 1 lakh to Rs. 3 lakh per annum.

DEPB and Freely Transferable Incentive Schemes provisionally

allowed without awaiting receipt of Bank Realisation Certificate

(BRC).

Export Obligation Period under Advance Authorization Scheme

enhanced from 24 months to 36 months without payment of

composition fee.

To facilitate tracing and tracking of pharmaceutical products and

hence to provide assurance about the quality of Indian pharma

products to prospective importers, requirement of affixing bar codes

has been made mandatory w.e.f. 01.07.11.

A new facility of Input combination for pharma products

manufactured trough Non-Infringing process, allowing actual

quantum of duty free inputs required for manufacturing such export

product, has been introduced. This will facilitate pharma

manufacturers to work towards getting a major share of exports of

such products to potential regulated markets such as US or EU.

Facilitation of Trade through various Electronic Data Interchange

(EDI) initiatives taken on online message exchange facility.

Additional facility of filing “online” application for obtaining IEC

introduced.

The report of the Task Force on Transaction Cost has been released by the

Hon’ble Finance Minister on 8th February, 2011. Action on 23 issues by different

Ministries is likely to reduce transaction cost to the tune of Rs. 2,100 crores in

perpetuity. Each recommendation is specific and in respect of many

recommendations necessary Government orders have already been issued on

the day of release of the Report.

65

Task Force on Transaction Cost

The Department of Commerce had constituted a Task Force on Transaction Cost

with a mandate to identify and suggest ways to achieve significant improvement in

efficiency of our export processes. The Task Force had a broad based

composition with representatives of FICCI, FIEO & CII in addition to Government

officials. The Task Force chose to adopt a quantitative approach so that

important issues and initiatives could be objectively prioritized. As per World

Bank doing business report, the magnitude of Transaction Cost ranges between 7

– 10% of the total exports. This comprises of infrastructural as well as procedural

inefficiencies. Accordingly, the addressable transaction cost is estimated to be

around US 6 – 7 billion.

The Task Force had identified 44 issues across 7 line Ministries viz. Agriculture,

Commerce, Finance, Civil Aviation, Railways, Shipping and Environment for

action. Extensive consultations were taken up with concerned Ministries and after

this 21 issues have been implemented and another 2 issues are going to be

implemented in next couple of months. Implementation of these 23 issues is likely

to mitigate transaction cost by approximately Rs. 2100 crores in perpetuity. The

report of the Task Force is an example of our Government’s action –oriented

approach to problem solving. Each recommendation is specific and in respect of

many recommendations necessary Government orders have already been issued

on the day of release of the Report.

Box: 3.2 Policy Announcements on 11th February, 2011

On 11th February 2011 export incentives were announced for more than 600

products (in respect of their exports with effect from 1/1/2011) in labour intensive

and/or technology intensive sectors like agriculture, chemicals, carpets,

engineering, electronics and plastics to enhance their competitiveness. The

salient features of these incentives and the measures to simplify procedures are

given below.

Export Incentives

Market Linked Focus Product Scheme (MLFPS)

335 New Products under MLFPS at 8 digit level eligible for benefits @ 2% of FOB

value of exports to 15 specified markets (Algeria, Egypt, Kenya, Nigeria,

Tanzania, South Africa, Ukraine, Mexico, Brazil, Australia, New Zealand,

Cambodia, Vietnam, China and Japan). Some examples are Agricultural Tractors

of more than 1800 cc; all inorganic chemicals and inorganic/organic compounds

of metals of Chapter 28; Flexible Intermediate Bulk Containers; and Narrow

Woven Fabrics.

71 new products of Chapter 63 (Textile Made ups at 8 digit level) for exports to

EU (27 Countries) under MLFPS for benefits @ 2% of FOB value of exports.

Focus Product Scheme (FPS)

147 products for Bonus Benefits (additional 2%: thus total benefit 4 % or 7 %)

under FPS at 8 digit level for export to all markets. Some examples are:

Engineering Items like Galvanized Flanges on Iron and Steel, Threaded Nuts

(7%); Ferro & Silico Manganese; Electronic Items like co-axial cables and other

co-axial electric conductors, Watches; Stationery items like Pencils, Pens; Textile

Items like Silk (of Chapter 50), Grey Rayon Tyre Cord Fabric, and Handmade

Carpets and other Floor Coverings under Chapter 57 (7%).

57 New products under FPS at 8 digit level eligible for benefits @ 2% of FOB

value of exports to all markets.

Special Focus Products: 1 product (Egg powder) under Special Focus Product at

8 digit level eligible for benefits @ 5% of FOB value of exports to all markets.

Vishesh Krishi and Gram Udyog Yojana (VKGUY):

6 New products (Castor Oil Meal – Defatted Variety and Instant Coffee) under

VKGUY at 8 digit level, eligible for benefits @ 5% of FOB value of exports to all

markets.

Procedural Simplifications

The report of the Task Force on transaction costs has been released by Hon’ble

Finance Minister on the 8th February 2011. Action on 23 issues by different line

ministries is likely to reduce transaction cost to the tune of Rs. 2100 crores in

perpetuity.

In order to make filing and issuance of IE Code hassle free with minimum human

interface between the applicant and the Regional Offices, an additional facility of

filing “on-line” application for obtaining IEC is being introduced.

The scope of Advance authorization for Annual Requirement is being enlarged to

allow a maximum of five authorizations in a licensing year (instead of only one at

present) for the product(s) falling within the same product group.

Technical characteristics / quality etc of certain specified items of imports shall be

required to be declared at the time of clearance of import consignment and not at

the time of filing application (current stipulation) for annual advance authorization

to Regional authority. By this facility, the exporter shall have the flexibility to

import the relevant inputs, without the need to approach the Regional authority of

DGFT to amend the authorization for clearance of such consignment.

The period to fulfil the export obligation under advance authorization scheme 36

months from the date of issuance of the authorization. However this period is

shorter for products being manufactured from certain duty free imported inputs,

which are sensitive from domestic angle. In such cases, the period for fulfilment

of export obligation is presently counted from the date of clearance of first import

consignment even when a number of consignments have been cleared in

different dates. Henceforth, with a view to provide greater flexibility, Export

obligation period in such shorter EO period cases of advance authorizations shall

be counted from the date of clearance of each consignment and not the first

consignment. This will allow a more reasonable time period for EO fulfilment to

exporters.

Improving Quality and deepening market access

Initiatives for pharma sector are as under:

Exporters of pharmaceutical products will be required to affix barcodes on their

export products, with effect from 1st July 2011, as per GS 1 global standards, to

facilitate tracing and tracking of their products. This will provide assurance about

the quality of Indian pharma products to prospective importers.

We are providing a new facility of Input combination for pharma products

manufactured through Non-Infringing process, allowing actual quantum of duty

free inputs required for manufacturing such export product. This will facilitate our

pharma manufacturers to work towards getting a major share of exports of such

products to potential regulated markets such as US or EU.

Trends in Authorisations

Trends of authorizations issued under Export promotion & duty neutralization

schemes of Foreign Trade Policy during the period April,2010- December,2010

are indicated below. During the period April 2010–December 2010, a total of

1,67,341 authorisations having CIF/Duty credit value of Rs. 2,42,804 Crore and

FOB/Export Obligation of Rs. 6,15,326 Crore have been issued. This represents

a growth of 13% in number, 155% in CIF/Duty credit value and 29% in FOB

value/EO over the corresponding period of last year.

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Some of the major policy initiatives undertaken by the Department during the year

are given below:

a) Exports of all Garments under Chapters 61 and Chapter 62 of ITCHS

Classification of Export and Import incentivized under the Market Linked

Focus Product Scheme (MLFPS), for duty credit scrip @ 2% of FOB value of

exports to USA and European Union from 1.4.2011 to 31.3.2012.

b) Special Bonus Benefit Scheme has been announced to provide duty credit

script @ 1% of FOB value of exports from 1.10.2011 till 31.3.2012 covering

49 products in Engineering, Pharmaceutical and Chemical sectors

c) Special Focus Market Scheme (SFMS) has been announced to provide

additional duty credit script @ 1% of FOB valued of exports to 41 markets

under FMS from 1.4.2011.

d) 130 additional items mostly from Ch Chemical/Pharmaceuticals, Textiles,

Handicrafts, Engineering and Electronics sector included in Focus Product

Scheme(FPS) for duty credit scrip @ 2% of FOB value of exports with effect

from 1.4.2011.

e) Market Linked Focus Product Scheme (MLFPS) has been extended to cover

new items to specified countries for duty credit scrip @ 2% of FOB value of

exports with effect from 1.4.2011.

f) The Status Holders Incentive Scrip (SHIS) scheme has been extended for

2012-2013 also.

Exporters of pharmaceutical products have been mandated to affix bar codes on

their export products w.e.f. 1st October, 2011 on the tertiary packs as per GS

1global

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standards, to facilitate tracing and tracking of their products. This will provide

assurance about the quality of Indian pharma products to prospective importers as

also prove the Made in India products in case of any dispute.

A new facility of Input combination for pharma products manufactured through Non-

Infringing process has been given viz., allowing actual quantum of duty free inputs

required for manufacturing such export product. This will facilitate our pharma

manufacturers to work towards getting a major share of exports of such products to

potential regulated markets such as US, EU and other markets.

I. National Export Insurance Account (NEIA)

A separate Fund with an approved corpus of Rs.2,000 crore called the National

Export Insurance Account (NEIA) was set up in 2006, out of which Rs. 886 crores

have been funded by the Government so far. During the year 2010-11, Rs. 150

crores allocated for NEIA has been released.

The objectives of NEIA is to promote project export from India, which may not take

place but for the support of a credit risk insurance cover which the ECGC is not in a

position to provide because of its own underwriting capacity. The NEIA is

maintained and operated by a Public Trust set up jointly by the Department of

Commerce and ECGC.

NEIA guidelines have been revised to provide risk cover for buyer credits which

may be extended by EXIM Bank to overseas agencies. Under the revised

guidelines projects which are backed by sovereign guarantees will be covered for

100% of value, without recourse, to deserving exporters. Provisions have also been

made to cover the risks arising due to exchange and interest fluctuations.

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II. Market Access Initiative (MAI) Scheme

The Market Access Initiative (MAI) Scheme is a Plan Scheme formulated to act as

a catalyst to promote India’s exports on a sustained basis, based upon ‘Focus

Product’ and ‘Focus Market’ concept. The Scheme was revised after a thorough

review and extensive consultation with all the stake holders in the year 2006 and

the revised scheme was launched with effect from January, 2007. The revised

scheme embodies enhancement of scope of the scheme, increase in the number

of eligible agencies and increase in scale of assistance. Rs. 149.99 crores have

been allocated during 2011-12 for MAI scheme. During the year, financial

assistance under MAI was provided to 200 projects/ export promotion events, etc.

to eligible agencies which include export promotion councils, trade promotion

organizations, national level institutions, etc. The Plan allocation in 2012-2013 for

the scheme is Rs. 130 crores.

Under the scheme, assistance is extended to the Departments of Central

Government and organizations of Central/State Government, Export Promotion

Councils, Registered Trade Promotion organizations, Commodity Boards,

Recognized Apex Trade Bodies, Recognized Industrial Clusters and individual

Exporters for product registration and testing charges for engineering products

abroad, Indian Missions, National Level institutions like Indian Institutes of

Technology (IITs), Indian Institutes of Management (IIMs), National Institute of

Fashion Technology (NIFT) etc., Research Institutions, Universities and

recognized laboratories.

The activities eligible for financial assistance under the Scheme are Marketing

Projects Abroad, Capacity Building, Support for Statutory Compliances, Studies,

Project Development etc.

III. Marketing Development Assistance (MDA) Scheme

To facilitate various measures being undertaken to stimulate and diversify the

country’s export trade, Marketing Development Assistance (MDA) Scheme is

under operation through the Department of Commerce.

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The Non-Plan scheme supports the following activities:

(i) Assist exporters for their participation in approved EPC/Trade Promotion

Organizations led export promotion events abroad.

(ii) Assist Export Promotion Council (EPCs) to undertake export promotion

activities for their product(s) and commodities.

(iii) Assist approved organizations/ trade bodies in undertaking exclusive

nonrecurring innovative activities connected with export promotion efforts for

their members.

(iv) Assist Focus export promotion programmes in specific regions abroad like

FOCUS (LAC), Focus (Africa), Focus (CIS) and Focus (ASEAN + 2).

(iv) Residual essential activities connected with marketing promotion efforts

abroad.

IV. Initiatives in Plantation Sector

Plantation crops have been the traditional exports of India providing employment

to millions of workers. Ageing bushes/plants which result in low productivity, high

cost of production, low value addition, lack of strong buildup of ‘Brand India’ and

volatility of international demand and prices are the major constraints facing the

sector. Some of the major initiatives undertaken in this sector during the year to

promote this sector include:

A. Rubber Board

Cess on rubber revised

The rate of cess on production of NR effective from 1 September 1998 was Rs.1.50

per kg. The cess was raised to Rs.2.00 per kg with effect from 1 September 2011

by Department of Commerce, Government of India vide Notification S.O. 2020(E)

dated 29 August 2011.

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TRQ import of NR

The Department of Revenue vide Notification No. 128/2010-Customs dated 22nd

December 2010 had permitted Tariff Rate Quota (TRQ) import of 40,000 tonnes

of dry forms of NR at 7.5% duty. Subsequently, the Directorate General of

Foreign Trade (DGFT) allotted 40,000 tonnes of import on the basis of

consumption of NR in 2009-10 to 31 applicants vide Trade Notice 05 dated 28th

January 2011. The Department of Revenue vide Notification No.59/2011-

Customs dated 13th July 2011 extended the period of the TRQ import from

“remaining part of the financial year 2010-11” to “remaining part of the financial

year 2011-12”.

Annual Mass Contact Campaign Programme

The Annual Campaign with the theme, significance of scientific tapping, was

conducted from 6th June to 22nd July 2011. Other topics such as importance of

replanting, climate change, quality of planting materials, need for appropriate

maintenance of rubber plantations, plant protection, strengthening of RPS etc.

were also covered in the campaign programme. During the campaign 8,704

meetings were conducted in traditional and non-traditional rubber growing

regions other than NE covering 84,562 growers. In the Northeast, 151 meetings

were conducted and 11,267 growers participated.

International Workshop and Seminar on Phytophthora diseases of

plantation crops

An International Workshop on Phytophthora Diseases of Plantation Crops

was held in RRII from 12th to 14th September 2011. The Workshop was attended

by 81 selected academicians, scientists and students working on Phytophthora

diseases of plantation crops. An International Seminar and Exhibition on

Phytophthora Diseases of Plantation Crops and Management was held from 15th

to 17th September 2011. The Seminar was attended by around 500 delegates.

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Market promotion

A new web portal www.indiannaturalrubber.com for promoting Indian Natural

Rubber brand and disseminating trade information was launched on 28th April

2011 in a meeting of dealers/exporters held at Board Head Office. The new portal

provides all NR trade related information at a single point for all the stakeholders

across the value chain.

India to chair IRSG

The 107th Group Meetings of IRSG were held from 11th to 14th July 2011 in

Singapore. India was unanimously elected as the new Chairman of IRSG for the

next two years.

B. Tea Board

2011-12 being the terminal year of XI Plan, no new projects will be initiated. Efforts

will be on achieving both physical and financial targets set for the XI Plan period. It is

proposed to hold a series of stakeholders meetings during this year to prepare an

Approach Paper and the areas to be addressed during the 12th Plan.

C. Spices Board

Replantation & Rejuvenation of Cardamom Plantations

The programme on Replantation & Rejuvenation of Cardamom Plantations has

got very good response from the farmers and the independent study conducted

by the Indian Institute of Management, Bangalore recommended for the

continuation of this programme in the XIIth plan also. In 2011-12, a target of

14000 hectares will be covered under replantation and rejuvenation of

cardamom large & small. It is proposed to cover an equal area of 14000

hectares in 2012-13. This includes areas replanted / rejuvenated by the farmers

with the technical advice of the Board but without availing subsidy.

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Pepper Production Development in Idukki district of Kerala

A project for pepper production programme has been approved by the Ministry of

Agriculture under National Horticulture Mission in March 2009 with major focus on

replantation and rejuvenation of pepper in Idukki district of Kerala and entrusted

with the Spices Board for implementation. Idukki is the major production centre of

pepper in Kerala. The total cost of the project is `230.58 crores of which the

approved total NHM assistance is to the tune of `120.00 crores to be implemented

for a period of 5 years starting from

2009-10. The programme is being implemented in Idukki district of Kerala from

2009-10 onwards. So far an area of 8547 hectares have been replanted with high

yielding planting materials. The target set for 2011-12 is 3500 hectares. This will

be continued in 2012-13 an the area proposed to cover is 3500 hectares.

Pepper Production Development in Wynad district of Kerala and N.E States

The scheme has been approved in October 2009 with a subsidy component of

`53.28 crores for implementation in the next 5 years. Action is being initiated for the

production of quality planting material in the current year itself. The implementation

of various components of the scheme has been started from 2010-11. In 2010-11

an area 5292 hectares have been replanted under the scheme. The target fixed for

2011-12 is 3000 hectares and it is expected to cover more area. This will be

continued in 2012-13 also and an area of 5000 hectares is proposed to cover.

Spices Parks

Spices Parks in different spice producing states are being set up to provide

common infrastructure facilities at the growing centres, which would facilitate

processing units close to the production centres, leading better price realization by

farmers by value addition and enhanced quality of spices; spices produced in the

region supported by processing and marketing infrastructure set up in the Spices

parks will boost exports with increased consumer acceptance, and thereby raise

income levels of farmers.

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The Spices Park at Puttady, Idukki, Kerala has started functioning where cardamom

is cleaned,graded and packed as per the requirement of the growers and exporters.

Cleaning,crushing/ powdering and packing of pepper is also done. Additionl

facilities for washing, drying and steam sterilization are being completed. The

setting up of Spices Parks at Guntur in Andhra Pradesh,Shivaganga in Tamil

nadu,Kotta and Jodhpur in Rajasthan,Guna in Madhya Pradesh and Mehsana in

Gujarat are at various stages of implementation and expected to operational by

middle of 2012. Electronic auction system for cardamom

The electronic auction (e-Auction) system introduced for cardamom is functioning

successfully at two centres viz., in the Spice Park at Puttadi in Kerala and

Bodinayakanur in Tamil Nadu with infrastructure facilities provided by the Board.

This will be continued in 2012-13 and the scope for introducing more electronic

auction centers will be considered.

Quality evaluation of spices exports

Sampling and quality checking of spices export consignments of chilli/chilli products

and turmeric powder by the Spices Board in its laboratories prior to exports to

ensure its conformity with the international standards are being continued since

2003. The aflatoxin test for the export consignment of nutmeg to EU region has

been made it mandatory in 2011. This quality enforcement initiative has led to

significant boost in consumer confidence in overseas markets and has increased

exports. Technical and financial support to exporters of spices to upgrade the

quality of spices are also provided by the Board for setting up of in-house

laboratory, quality certification, training of technical personnel in analysis of various

parameters besides disseminating quality requirements specified by various buying

countries to exporters.

Training on GAP on spice production

A three months’ residential programme is conducted by Indian Cardamom

Research Institute of the Board to train unemployed youths from farming families

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adopt Good Agricultural Practices (GAP) for quality spice production. This

programme will be continued in 2012-13.

D. Coffee Board

New Policy Initiatives of Coffee Sector - Proposals for XII Plan (2012-17)

The coffee sector underwent unprecedented crisis during the period 2001-2004.

Despite that, the sector has shown signs of recovery towards the end of XI Plan

period thanks to various relief/ support measures announced by the Governments

both at Central and State levels. The country’s coffee production has crossed the

2000-01 level (3,00,600MT) during 2010-11 (3,02,200 MT). However, issues like

stagnant production, declining productivity, erratic weather due to climate change,

shortage of workers etc., remain as the major constraints towards the full revival of

coffee sector in the country especially to meet the future requirements of domestic

and export markets.

Based on the lessons learnt during the implementation of XI Plan schemes,

priorities/ thrust areas and strategies have been identified for the XII Plan period for

supporting the growth and sustainability of Indian coffee sector. All the XI Plan

schemes, which continue to be relevant from the point of growth & development of

the industry will be continued with suitable modifications based on inputs from

stakeholders consultation meetings, the recommendations made under the study

Structural Infirmities in Plantation Sector- Coffee and the recommendations of

expert committee which went into evaluation of XI Plan schemes on coffee. The

modifications in the schemes include restructuring of schemes by rearranging the

components, conversion of existing components into full –fledged schemes,

inclusion of certain modified/new components into the existing schemes etc.

The details of new components proposed to be included into the existing XI

Plan schemes/components are:

Support for Value addition

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Traditionally bulk of Indian Coffee exports are in the form of conventional,

commercial product i.e., green bean form because of which the producers receive

less than 20% of the final value realized at retail level. Hence, apart from

increasing the productivity levels there is need to improve the unit value realization

for the coffee sold by producers. This is possible by approaches like quality

improvement, differentiation and value addition. By adopting systematic

improvements in quality of beans, the coffees can be sold at higher value compared

to commercial beans. There are also opportunities for exporting certified coffees

under the sustainable coffees category, for which good demand exists in the global

market. India’s fast growing domestic coffee market also provides a unique

opportunity for the growers to enter into R&G coffee segment directly through value

addition.

In this regard, apart from continuing the existing XI Plan scheme of providing

support for setting up of Coffee Roasting, Grinding and Packaging Units, it is

proposed to extend support for modernization of curing works and support for

setting up of quality testing laboratories by stakeholders.

1. Support for setting up of Coffee Roasting, Grinding and Packaging Units

With the rise of domestic demand, a robust domestic market would work as a

buffer for any international fluctuations on one hand, while the coffee value chain

can generate entrepreneurial opportunities as well as employment, creating value

for all. In this context, the need is felt to support the movement up the value chain

on one hand and also attract capital for investment from non conventional coffee

drinking areas in India on the other. The support is to be strengthened on the supply

side, i.e., roasting, grinding, packaging etc.

As the modern technologies in the area of coffee roasting, grinding and

packaging are capital intensive, coffee value addition activities need support.

Therefore, it was found necessary to extend appropriate support to the

entrepreneurs to acquire the suitable technology to manufacture and package good

quality coffee powder to the consumers. Hence, the Government of India

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introduced the scheme to provide financial support for purchase of coffee

processing machineries in the XI plan period. The same is proposed to be

continued during XII Plan period also, keeping in view of increasing demand in

domestic market.

2. Support for modernization of coffee curing works

Before liberalization, almost all the coffee curing works were functioning under

the guidance and supervision of Coffee Board. At present there are 75 licensed

coffee curing works apart from an equal number of unlicensed units. Most of

the licensed units were established more than 40-50 years back. The

technology of green coffee processing used by these curing works is obsolete

and the machineries are very old and hence these curing works are not able to

meet the present day requirement of high quality processing. Besides, many of

these coffee curing works are running under loss and they are not in a position

to upgrade their machineries established long back. At present the technology

of secondary processing is improved and hi-technology machineries are

developed. Hence, there is a need to upgrade the existing curing works with

latest/hi-technology machineries on par with international standards to improve

the overall quality standards of Indian coffees. Modernization also helps in

automation of some of the operations of coffee curing, thus ensuring reduction

in operational costs.

3. Support for setting up of quality testing laboratories by stakeholders

In an export oriented commodity like coffee, there is need for constant efforts

towards quality improvement so as to meet the consumers demand and

requirement of importing countries. The concept of cup quality assessment has

beengaining importance at different stages of coffee value chain like

production, curing and trade etc., in all the coffee producing countries around

the world. Realizing the significance of quality assessment by stakeholders, the

Board has introduced a support scheme for setting up of quality evaluation

laboratories during X Plan which was continued in the XI plan also. So far

about 50

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laboratories have been set up by different stakeholders, which have greatly

contributed towards quality improvement and production of specialty coffees.

Hence, it is proposed to continue this component of support during XII Plan

period also.

4. Census of coffee holdings

The Census of coffee estates was done some three decades ago. Since then

the data is being updated using the Coffee Board extension network spread

over entire coffee growing areas. However, this has its own limitation because

many activities undertaken by the growers may not come to the notice of

Board’s extension officials, if such activity is carried out beyond the scope of

development support schemes implemented by Coffee Board. It is evident that

reliable data on coffee area and holding pattern is a pre-requisite to prepare

specific strategic planning for different areas. Hence it is proposed to

undertaken elaborate Census of coffee holdings in different states to update

data base on coffee area, holding pattern, infrastructure facilities, water

resources etc. complemented with area estimation using remote sensing

application.

5. Support to Growers collectives/ SHGs/ cooperatives for coffee Marketing

Indian coffee growing sector is dominated by small and tiny growers. These

growers are forced to sell their produce at farm gate level thus affecting their

overall returns. In many producing countries in Central & South America and

Africa smallholders form collectives/cooperatives for processing of coffee at a

central location and marketing their entire coffee in big lots sometimes directly

exporting to different destinations. By this way they are able to not only improve

the quality of coffee but also realize better value for their coffees. Hence, the

Board is proposing to encourage formation of growers’ collectives/ SHGs/

cooperatives by offering different level of support under different developmental

activities like processing, mechanization etc. Under this component, it is

proposed to provide one-time support for growers’ collectives/ SHGs/

cooperatives for marketing of coffee by these groups.

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V. MPEDA

To increase the production

MPEDA in association with SIPPO has taken up organic culture of

scampi in an area of 50 hectares in Kerala and Andhra Pradesh.

Discussion is in the advanced stage to get financial and technical

assistance for popularizing marine finfish farming through cage culture, in

association with NORAD an agency identified by Innovation Norway with

whom MPEDA entered into an MOU.

Culture of sea bass in cages and ponds with the seeds produced by

RGCA on a pilot scale.

Introduction and adoption of code of practices in shrimp farms addressing

thereby sustainability concerns.

Assistance for conversion of fishing vessels into tuna long liners and

provide long line materials to tap otherwise unexploited Tuna resources.

To improve quality and sustainability of marine products meant for

Export

The National Residue Control Plan (NRCP) to monitor the residue levels

of various environmental contaminants in aquaculture was continued

more vigorously.

Hazard Analysis Critical Control Point (HACCP) team continues to assist

seafood processing units for preparing HACCP manual and

implementation of HACCP system.

MPEDA laboratories at Kochi, Nellore and Bhimavaram, accredited

laboratories’ test results are accepted by the importing countries without

further verification.

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The new laboratory made operational at Bhubaneswar tests for antibiotics

like Nitrofurans and Chloramphenicol of marine products meant for export.

NETFISH and NaCSA, the two societies formed for undertaking extension

education programmes continue their effort in capture and culture

fisheries sectors, for quality upgradation.

To prevent, deter and eliminate illegal, unreported and unregulated fishing, implemented Catch Certificate for export of seafood consignments to European Union.

Other developmental/promotional activities

Upgradation and modernization programmes of various fishing

harbours/landing centres are progressing.

Conversion work on fishing vessels underway for tapping the tuna

resources.

Ornamental fish breeding units coming up in a big way to boost the export

of ornamental fish.

Rajeev Gandhi Centre for Aquaculture continues its pioneering effort in research and development of various efforts in production of seed and culture thereof.

MILE STONES 11TH Five Year Plan

Promotion of Brand equity of Indian Products

Increase in production of Tuna to 55000 MT per annum from the current

level of 18000 MT by the end of 11th Plan.

Increase production from aquaculture to 0.5 Million MT by the end of the

11th Plan

50% of products exported to be value added

Improve capacity utilisation of processing plants

Improvement of hygiene in landing centres/fishing boats

Create a foundation for Rajiv Gandhi Centre for Aquaculture.

Make India a Seafood Processing Hub.

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It shall be MPEDA’s endeavor to realize the above goals by following a road

map, which focuses attention on the areas identified above. The schemes

and financial outlay of MPEDA’s 11th and 12th Plans will follow the vigorous

road map. As mentioned earlier, it is inevitable that the areas to be

addressed by MPEDA might sometimes fall within the purview of other

Ministries/departments/organizations. This is sought to be resolved through

convergence with the programmes of the Ministry of Food Processing

Industry. Department of Animal Husbandry, Dairying and Fisheries,

National Fisheries Development Board etc. whose resources will be

adequately utilized by the MPEDA to supplement its own resources. It is

expected that they will also give due attention to the complex needs of the

export sector and lend their unstinted support to MPEDA.

REFORMS

Network for Fish Quality Management & Sustainable Fishing (NETFISH)

A society named Network for Fish Quality Management & Sustainable Fishing

(NETFISH), registered with MPEDA, under the Travancore Cochin Literary,

Scientific and Charitable Societies Registration Act, 1955 at Ernakulam, has

been formulated to organize the extension programmes of MPEDA in all maritime

states and a budget of Rs.655 lakh has been included in the XI Five Year Plan.

In addition, an amount of Rs. 50 lakh has also been included in the budget

earmarked for the 10th five year plan, to incur the expenditures for the period from

December, 2006 to March, 2007 The headquarters of NETFISH is at Ernakulam.

NETFISH will undertake capacity building for providing training to fishermen on

board handling, training to trainees, training to stakeholders in handling fish in

landing centers, training on TED, training to Societies for conservation of fishery

resources, training to pre-processing plant workers, training in hygienic

maintenance of fishing boats, etc.

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NETFISH will evolve a new mechanism for capacity building in quality management

at grassroots levels by networking with fishermen societies, federations and other

non-governmental organizations which work closely with the fishing community,

which will be more effective in imparting training to fishermen and fish workers.

NETFISH will also promote capacity building for stakeholders etc in planning,

marketing, technology dissemination, processing etc and thereby facilitate their

empowerment. NETFISH will also bring out extension training materials for all

training programmes in various languages, prepare video extension materials,

brochures, etc.

India Organic Aquaculture Project (IOAP)

MPEDA proposes to implement organic aquaculture in India by availing the

consultancy and technical collaboration from the Swiss Import Promotion

Programme (SIPPO), Zurich, Switzerland.

The brackish water area available in India for shrimp farming includes the existing

traditional prawn filtration fields also, which are located in West Bengal (46100 ha)

and Kerala (10700 ha). These vast filtration areas are actually paddy fields,

belonging to several entrepreneurs, who do salt resistance paddy cultivation by

themselves and later auction the area, after paddy cultivation for doing the

seasonal traditional prawn filtration, when the water become saline in nature due to

inundation. The traditional type of prawn filtration system is highly environment-

friendly as they use no antibiotics, chemicals, etc and hence the paddy fields can

easily be adopted for organic aquaculture. Organic aquaculture ensures that the

farming activity is in harmony with the nature, with due care for the good health and

welfare of the cultured organisms. Organic products have become very popular

now days due to rise in health and welfare of the cultured organisms. Organic

products have become very popular now a days due to rise in health and

environmental awareness, concerns on food safety and there is a growing demand

in developed countries, especially; US, EU, etc. The premium for the organic

products is also high in the international markets.

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The proposal envisages implementation of organic aquaculture project for brackish

water shrimp Penaeus monodon (tiger shrimp) and the fresh water giant prawn,

Macrobrachium rosenbergii (scampi), in the States of Kerala, West Bengal and

Andhra Pradesh. SIPPO will extend technical assistance through its consultant,

BLUEYOU by conducting a few demonstration programmes initially for tiger shrimp

and scampi in Kerala and Andhra Pradesh. It is proposed capacity building in

organic aquaculture for MPEDA officers and staff which will be a key component

and making use of the expertise acquired during the 1st phase of the programme,

the MPEDA will implement the programme in West Bengal during the 2nd phase

under the supervision of the technical consultants. A budget outlay of Rs.200 lakh

as a new scheme has been made in the 11th 5-year plan for implementing organic

aquaculture programme by MPEDA. Several workshops and training programmes

have already been arranged in Kerala & AP on organic aquaculture. It is proposed

to undertake organic aquaculture initially in AP & Kerala in the current financial

year. Hatcheries, Feed Mill and processing plants have been identified and necessary

action has been taken to convert the operation into organic mode.

National Centre for Sustainable Aquaculture (NaCSA)

The National Centre for Sustainable Aquaculture (NaCSA) is an outreach

organization of MPEDA to provide technical support to the primary aquaculture

societies and build capacity among small farmers to produce quality shrimps in a

sustainable manner. It is envisaged that NaCSA will serve as a link between

primary aquaculture societies and the farmers in turn to facilitate formulation of

common policies, strategies etc. to benefit farming community as a whole in the

country. The objective of community participation in coastal aquaculture is

expected to augment shrimp production for raising the seafood export from India.

NaCSA was inaugurated on 3rd March 2007 at Kakinada by the Hon’ble MOS for

Commerce and Industry. A Chief Executive Officer (CEO) and essential staff have

been already appointed besides housing the headquarters of NaCSA at Kakkinada.

The requirements to the field offices of NaCSA in various maritime states is being

attended. A detailed work plan has been formulated for streamlining the activities,

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for which a workshop was organized with the stake holders. Action as per the work

plan has already been initiated.

Reform measures in Tea Sector:

1. Tea Plantation Development Scheme

The main objective of the Tea Plantation Development Scheme is to

encourage the tea plantations in undertaking various field oriented

developmental measures aimed at increasing field productivity and

decreasing cost of production. In order to achieve these objectives, and

given the high cost of production mainly due to the labour cost accounting for

more than 60% of the total cost of production and high fluctuation in the tea

prices, it has become necessary to continue the scheme during XII Plan

period for providing financial incentives in the form of subsidy for a set of

activities to be undertaken by the growers. When compared to XI Plan

scheme, the following changes have been proposed for the XII Plan period.

1. New Planting: Given in the imbalance in demand and supply, new

planting was not encouraged during the previous two plan periods. It was

however allowed on a limited scale for small growers particularly in NE

Region and Hilly area. During the course of last ten years while the

overall supply was around 130 million kgs the domestic demand was in

the order of 170 million kgs leading to a gap of 40 million kgs. In order to

bridge this gap it is proposed to extend support for new planting by way of

subsidy @25% of the planting cost and interest subsidy @5% p.a for

seven years on the 50% of the planting cost availed as loan from banks.

2. Drainage and Transport facilities: The drainage component under the

PD scheme, has received very low response from the industry.

Moreover, the scheme is difficult to monitor as most of the works

undertaken are civil works in nature The performance of the Scheme in

terms of creation of Transportation facilities has been poor. Moreover,

this subsidy does not

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result in any long term impact on the established estate gardens.In view of

these facts, it is proposed to discontinue the support for these two activities.

3. Irrigation: The irregularity in the monsoon (both in terms of lack of

adequate rainfall and prolonged dry period) is forcing the industry to

invest on irrigation infrastructure. Moreover, large scale replanting would

bring large area under young bushes. These young sections require

irrigation much more than older sections. Hence, irrigation should be a

focus area for the XIIth Plan period. Currently the irrigation subsidy being

offered is 25% of the total expenditure subject to a maximum of Rs.

10,000 per Ha. Moreover, the total expenditure per garden is also capped

at a maximum of Rs. 10 Lakhs. Considering the current cost of creating

conventional irrigation facility (Estimated to be around Rs. 70,000 per ha),

this ceiling is too low. Moreover many gardens are now willing to go for

large scale investments in irrigation covering more than 100 ha of area at

one time and such large scale investment in irrigation should be

encouraged. In such situation, a ceiling on total expenditure may not be

justified.In addition to subsidy it is proposed to provideinterest subsidy

@5% p.a for seven years on the 50% of the planting cost availed as loan

from banks.

4. Subsidy and Interest Subsidy for Field Mechanization: Due to

growing problem of labour scarcity across the producing regions (more

predominant in South India), the industry needs to explore use of

mechanization and use of new technology for activities that are

traditionally undertaken manually. Accordingly, it is proposed to

incentivize use of following field mechanization equipment’s:

Mechanical harvesting equipment

Pruning machines

JCV machines

5. Support to Small growers:The small grower sector has emerged as an

important sector contributing nearly one third of the country’s production of

made tea. Current estimation indicates that there are nearly 1,60,000 small

growers producing nearly 257 M. kg of tea accounting for around 26% of the

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total tea production of the country. Considering growing contribution of the

small grower sector, there is a need to put increased attention to this sector.

Accordingly, various subsidies and supports that are available to the small

growers under various schemes of XI Plan have been clubbed/ consolidated

under one umbrella scheme.

6. SPTF : Special Purpose Tea Fund was formulated for assisting the tea gardens

in undertaking replanting, replacement planting and rejuvenation of old aged

tea bushes so that the industry becomes more viable, competitive and

financially sustainable.A major deterrent to producers for undertaking uprooting

and replanting on regular basis is the large actual costs involved in the activity.

In addition to the actual costs involved in carrying out uprooting and replanting

and subsequent maintenance required to nurture the young section, the

producers also get deterred by the resulting crop losses during the initial period

of 5-6 years. SPTF tried to address this issue by extending a loan component in

addition to subsidy component. However, the loan component has not received

adequate response and the cost of administering the loan component

hasbecome quite high. The performance of the scheme has been critically

reviewed by the CAG and recommended for adequate compensation of the

crop loss due to uprooting. Keeping this in view it is proposed to modify the

existing scheme with additional features as under:

a. Withdrawal of loan and introduction of interest subsidy:an interest

subsidy of 5% may be introduced for a term loan that a tea garden can

take from any scheduled commercial bank for undertaking the activities..

The term loan should have tenure of 7 years, and the pay out of interest

subsidy would commence from 1st anniversary of the release of the loan

amount till full repayment over 7 years.

b. Introduction of a Crop Loss Subsidy:It is proposed to reimburse

100% of the net crop loss value as Crop Loss Subsidy by taking into

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account the actual cost or production, net average sale price for each

tea growing region and the net crop loss suffered by individual garden

after factoring in the crop gained during the gestation period.

c. Encourage gardens to have own nursery: Use of good quality

planting materials as prescribed by research institutions have a lasting

impact on the long term sustainability of the industry. In order to

encourage tea gardens establishing their own nurseries, it is proposed to

advance 25% of the subsidy up front out of the total subsidy payable

under the scheme on completion of replanting.

d. Introduction of a graded subsidy in order to encourage producers

going for accelerated uprooting and replanting it is proposed to

introduce graded subsidy rates as shown in the following table:

Uprooting Percentage Subsidy Rate

Up to 1 % No Subsidy

>1 to 2 % 25%

>2 to 3 % 30%

>3 to 4 % 35%

Above 4% 40%

e. Relaxation of age limit for closed tea gardens:The age limit may be

relaxed in case of gardens that were closed and abandoned for three

consecutive years immediately prior to the year of application. In case of

such gardens, age would not be a factor for sanction and release of

subsidy provided TRA/ UPASI-TRF certifies uprooting and replanting as

the best option for revival of the concerned section.

With the introduction of the two additional subsidy components( interest subsidy

and crop[ loss subsidy), the overall share of support would range from 31% to

43% of the total costs, depending on the % area taken up for uprooting and

replanting by the concerned producer. It is felt that this level

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of support would be necessary to motivate the gardens to come forward and

participate in the scheme in larger numbers so that significant impacts can be

made on the industry-wide age profile of the bushes and the resultant yield and

quality of tea production in the country.

2. Tea Quality Upgradation and Product Diversification Scheme (QUPDS)

The main objective of QUPDS is to serve as a catalyst for tea factories/

blending/ packaging units to undertake investments in modern technologies/

processes (either for expansion or for replacement), which would eventually

enable quality improvement, and higher realizations through the production of

better quality/ value added teas. The overall objective of the scheme is to

encourage following activities:

• Factory related activities

- Modernization of the processing factories by replacement of old and

worn out machinery

- Value addition by way of creating additional infrastructure for cleaning

and blending and packaging facilities

- Quality assurance certification – ISO/HACCP and Organic Tea

Certification

- Product diversification – production of orthodox tea, green tea and

specialty teas etc

• Incentive for Orthodox Tea production in order to increase production of

exportable tea

Orthodox subsidy scheme

Orthodox subsidy scheme would have to be continued in order to encourage

producers to produce larger quantity of orthodox tea. It has been noted from

the two studies conducted by the Board through two independent agencies

that orthodox producers are not getting adequate price advantage that can

compensate for the additional costs involved in producing orthodox tea.

Considering the above factors, it is proposed to consider the following rate of

subsidy during XII Plan period.

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(a) Increase the rate of subsidy on leaf and dust grades from Rs.3 and Rs.2 to

Rs.4 and Rs.3, increase in incremental production subsidy to Rs.l 0, and

subsidy on export of Rs.7. This would mean a total subsidy package of

Rs.267 crores and if the export subsidy is decreased in the same package

to Rs.5 instead of Rs.7, it will be Rs.265 crores.

(b) Keeping the subsidy element same ( as is now) for leaf and dust of Rs.3

and Rs. 2 respectively, but increase incremental production subsidy to

Rs.10 and exports subsidy to Rs.7, it would be RS.205 crores and keeping

orthodox export subsidy to Rs.5 in the same combination, it would be

Rs.203 crores.

3. Small Growers Development Scheme

Giving due considerations to the special needs of the small growers sector and

increasingly important role the sector is playing in the Indian tea industry, a

separate dedicated scheme has been proposed for the sector with various sub-

components covering all aspects of development for the sector. Many of the

benefits enshrined under this new scheme are already available as part of the

XI Plan PDS. However, we have made some changes in the ceilings and

quantum of subsidy based on the legitimate demands of the industry and general

escalation in cost of equipment and implements.

4. Market Promotion Scheme

There is a continuing need for the Tea Board’s intervention in promoting the

Indian Tea Exports. Also, in the domestic Market, given the competition that tea

faces from other beverages, ‘generic’ promotion of tea is required. Thus, there is

a need for continuance of Market Promotion efforts in the 12th Plan period.

Activities proposed to be supported under the Market Promotion Scheme under

12th Plan have been highlighted below:

Infra structure creation: Designated Tea Parks, fully developed well served

and serviced basic infrastructure meant for tea units engaged in activities of

processing, blending, tea bagging, storing, warehousing etc. for the purpose of

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exports are proposed. Core infra structure may include internal road, power

facilities, water supply, R & D centre etc.

Brand Promotion (Promotion Scheme for Packaged Tea or Indian

Origin):The Scheme is intended to promote teas of Indian origin. The Scheme

covers all the Indian companies/exporters marketing Indian brands in packets

less than 1 kg and would be applicable for the categories like showroom,

promotional campaign, in store demonstration, website development,

inspection charges, etc.

Brand equity, IPR/GI protection and related legal activities:In order to

increase the brand equity and protection of GI/IPR of Indian tea and in

particular, the origin teas like Darjeeling, Assam, Dooars-Terai, Nilgiris, Kangra

etc it is essential to administer these marks/logos and stop misuse of such

treasured Indian origin names internationally. Efforts to register these GI’s in

various jurisdictions and fight legal battles against infringement of Indian

logos/marks need to be continued.

Promotional activities:

Domestic Promotion- In order to increase domestic consumption of tea and

sustain a demand pull in the domestic scenario it is essential to continue with

media campaign, fairs/exhibitions, advertisement/sponsorship etc.

Incentive to Exporters/Associations- The activities like transport subsidy,

Export Promotion Support to the exporters and associations etc are very

important for their continuance in particular the support under transport subsidy

(ICD Amingaon) provides an incentive to the exporters for the loss incurred due

to empty haulage of containers from Amingaon to Haldia. Export Promotion

Support by way of providing air travel reimbursement, sharing a part of

overseas Buyer-Seller meets participation in fairs/exhibitions etc by the

exporters provide a positive impact on export activities and to help increasing

market share.

Overseas Promotion: Activities like membership of Tea Councils,

overseas promotion in Japan etc will continue to have good significance on

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increasing market shares in the overseas markets. Joint Overseas Promotion

by way of 5-5-5 Project in 5 countries assumes great importance in the matter

of India Brand Promotion in the potential markets in Russia, USA, Kazakhstan,

Iran and Egypt.

Trade Related Activities: Trade related activities like Deputation-

Delegation both outbound and inbound, participation in International

Fairs/Exhibitions, organizing Semimar/Conference like India International Tea

Festival, conducting market research in various potential countries, building up

tea infra structure by way of Tea Park/Warehouse etc will continue to remain

thrust areas in order to have close interaction with the overseas importers and

increase market share and develop new markets abroad as also to facilitate

Indian tea industry to improve quality image and attraction.

Publicity Materials: PR activities through various gift materials, tea

caddies/carton/chestlets etc together with releasing advertisements on Indian

Tea in printing media/publications have always been found to be an effective

vehicle for promotional publicity, both in domestic market and abroad. Hence

these activities are very well justified to continue in the 12th Plan period.

Freight Equalisation Subsidy: Unlike in Sri Lanka Indian tea exporters do not

have the direct shipment from the country itself. They have to incur a huge

additional cost due to loading through feeder vessels to Sri Lankan port first.

This has been a long standing grievance from the Indian tea exporters. In order

to increase price competitiveness of Indian tea exports it is proposed to assist

them by providing a subsidy / assistance.

Logo administration and quality assurance:Logos of Indian origin tea such

as Darjeeling, Assam, Dooars-Terai, Nilgiris etc together with India Tea are

registered as GI /CTM in India and also overseas under various country

regulations. It is proposed to attach some minimum quality benchmark on

organoleptic and chemical parameters of such tea for usage of these logos

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and administer the system accordingly. This will involve constant

monitoring/checking of the quality through inspection.

Assistance for setting up Tea Boutiques: In order to showcase diversified

product range of Indian tea Tea Boutique is considered an important

promotional vehicle where tea on consumer preference can be spot sampled

and sold across to potential buyers and tea connoisseurs. While Tea Boutiques

have been already popular internationally, it is proposed that assistance to set

up such boutiques with the basic infra structure be provided to the exporters

and some scheme be formulated.

Tea Campaign: Sustained tea promotions by way of media campaigns aimed

at popularizing the positive aspects of tea and in a manner made especially

interesting to the youth are the need of the hour, both for the overseas and the

domestic market. Apart from extolling the positive health benefits, the other

positive social attributes associated with tea such as camaraderie, friendship,

bonding etc can be explored. The style quotient of tea which is on an upward

swing in the niche markets and in the niche segments of many societies should

be exploited while also popularizing it as a preferential beverage choice of the

youth with health and beauty aspects being stressed on. A 360 degree

advertising and media blitzkrieg on a sustained level over the years would go a

long way in popularizing this amazing beverage- India Tea.

5. Plantation workers welfare and Training Scheme(Human Resource

Development Scheme)

There are various schemes run by state and central govt. that cater to the

various labour welfare related activities aka education, drinking water,

sanitation, health, etc., currently being covered under Tea Board schemes. At

the same time, it has also been observed that it has become financially

unviable for the tea industry to continue to bear the social cost burden in their

garden estates. Considering the same, our key recommendation on the

proposed scheme for HRD is as follows:

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1. HRD Scheme to cater only human resource development activities

and training of Tea plantation workers

2. Creation of a separate trust or an agency under the aegis of the

Tea Board to look after:

a. Housing facilities under Indira AwasYojana

b. Sanitation facility under Total Sanitation Campaign

c. Safe drinking water under Swajaldhara

d. Health under National Rural Health Mission (NRHM),

e. Educational facilities under SarvaSikshaAbhiyan

f. Formation of SHG under SJSY

3. Focus on Training Programmes

6. Scheme for monitoring the implementation of Regulatory provisions

of Tea Act.

There are certain regulatory and compliance related activities of Tea Board

that are not covered under any scheme. Such activities include the

following:

Mandatory check- mechanism to ensure quality of tea meant for

export from India

Mandatory Checking of each consignment before its

shipment from India destined for selected countries like,

Japan, Germany, United Kingdom, Russia, U.S.A., Iraq,

Iran and A.R.E.

Mandatory Checking of consignments below certain level

of unit FOB export price.

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Export of tea from India is, at present, regulated /monitored under the

provisions of the Tea (Distribution and Export) Control Order 2005 which

has been notified in supersession of the earlier order viz:- the Tea

(Distribution and Export) Control Order 1957. The standard of quality of tea

to be exported from India shall conform to the specifications of black tea,

green tea etc as indicated in the above mentioned order of 2005. Apart

from the above standard of quality of tea, tea exporters are prohibited from

exporting tea in which the maximum level of metallic contaminants, pesticide

residue etc. exceed the level as indicated in Para 2(v) of the aforesaid order.

Mandatory check mechanism to ensure supply of quality Green

leaf to the manufacturer and the process of manufacturing quality

tea for the consumers.

To introduce regular monitoring mechanism of checking of Tea

Waste generated at the factory level to ensure maintenance of

quality tea at the factory.

To introduce Region wise / State wise study on the status of the

tea estates / tea manufacturing factories.

To undertake a Micro level study on the extent of implementation

of the different regulatory provisions of Tea Act and Control

Orders.

To undertake a Region wise / State wise assessment of extent of

programme implementation by the beneficiaries under different

schemes of Tea Board, its impact & economic analysis.

To study the cost of production of tea leaf of the small grower

vis-à-vis by estates and cost of manufacturing of made tea by the

Estate Factories / Bought Leaf Factories & Co-operative

factories.

Strengthening of e-auction and bringing other allied activities

under electronic platform.

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Tea Board needs to strengthen following functional areas, in order to

become a more effective development and regulatory agency:

- Cost accounting: Tea Board has to rely extensively on external agencies for

undertaking studies on cost structure, cost competitiveness, etc of tea

industry on a regular basis. It needs to have an in-house cost accounting cell

for undertaking such exercises.

- Economics & Policy Research Unit: For effective planning and policy

formulation for the industry, an in-house economics and policy research cell

should be part of Tea Board’s internal structure. This cell should carry out

high level policy research, best practice studies in terms of policies and

planning, and provide specific periodic recommendations to the authorities in

terms of suggested policy interventions.

- HRD Cell: Human Resource Development is a crucial function. Tea Board

currently does not have any HRD cell. The same should be created in order

to effectively monitor and implement HRD Scheme related initiatives and

activities.

7. Research and Development Schemes

The activities covered under this scheme includes – meeting recurring

expenditure on some of the identified items of TRA and UPASI-TRF, up-

gradation of DTR&DC, supporting research projects of Tea Research

Institutes and other recognized Institutes on quality up- gradation, Integrated

Pest and Disease Management, value addition and product diversification,

nutrition management, tea and human health, setting up of quality control

laboratories etc.

(A) Ongoing Research Schemes :The research schemes that have been

initiated during the XI Plan period are under various stages of completion

and some of the schemes are to be continued for one or two years of the XII

plan period for their completion.

(B) Justification for continuation during XII Plan: Long term Research is

necessary for developing and improving the techniques for modernization of

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processing, as well as, for finding answers to emerging constraints and

limitations. Streamlining and strengthening of the research and creating

suitable mechanism to ensure that research remains responsive and in tune

with the time is cardinal for future progress and growth of the industry.

VI. Trade Facilitating Reforms and Export Promotion Measures

During the year, the ongoing reforms on the trade facilitation and export

promotion fronts were further deepened and new initiatives undertaken. The

major initiatives in this regard include:

A. e-TRADE Project

The project entitled “Electronic Trade (eTRADE)” is pursued by this Department in

various trade regulatory and facilitating agencies like DGFT, customs, seaports,

airports, Container Corporation of India (CONCOR), banks, carriers, importers,

exporters, agents to facilitate efficient and effective mode of transacting business

in the area of foreign trade. The services covered under the project are electronic

delivery of services in online environment i.e electronic filing/clearance of

export/import documents, e-Payment of duties, charges (handling/freight etc.) and

the electronic message exchange between community partners.

Major developments during the year are as follows:

1. The digitally signed electronic message exchange between Customs and

DGFT for Annual Advance authorization and Duty Free Import Authorisation

is being finalized. The message exchange between DGFT and Customs for

DEPB, DES and EPCG schemes is already operational for all EDI ports.

2. The Centralized Port Community System (PCS) which is operational at major

seaports to provide single window interface is now being extended to other

non-major seaports. Other seaports like Mundra, Dahej, Pipavav and

Gangavaram, which contribute large share in terms of traffic of non-major

seaports are at an advance stage of implementation.

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3. The electronic Express Courier Clearance System has been started at the

airports of New Delhi and Mumbai. This would facilitate the faster clearances

of express courier consignments.

4. The Customs has implemented the Central Server system for which roll out

has already been done at around 90 locations. A total of 115 locations are

planned to be covered by the Customs under central server system in the

current phase. The implementation of message exchange with community

partners under central server environment is under process.

5. The new version of Risk Management System (RMS 3.1) under central

server environment has been started at around 50 EDI locations.

6. To enhance the ePayment usage, Customs is integrating ePayment of duties

from any of its authorized banks for all Customs locations. Eight banks have

already started collection of customs duties through e-payment. To facilitate

this the electronic Pay and Account Office (e-PAO) software has also been

developed which is under implementation.

B. e-Procurement

DGS&D initiated its journey towards implementation of e-Procurement platform in

the financial year 2004-05 and over a period of time developed an end-to-end

solution beginning with the identification of new items for bringing on Rate

Contract(R/C), consultative meetings to finalize deletion/addition of items,

governing specification and terms and conditions, formulation of governing

specifications, creation and invitation of tender, receiving and opening of bids

through secured e-tendering platform, comparative and ranking Statements,

information regarding dispatch of supplies and receipt by the consignee, e-

payments and debit adjustments. Different software modules have been

extensively used for its internal activities concerning purchase and inspection.

The platform has since stabilized.

A computerized system based on client server architecture on LAN/WAN working

at Headquarters and regional/sub-ordinate offices with adequate communication

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links and website & Web enabled systems has been established in the

organization.

The system has been developed in-house with NIC providing e-support in

developing software modules. In the initial phases, E-tendering was out-sourced

through a third party, acting as ASP, on PPP mode. However, after expiry of

third party ASP contracted for e-tendering module is fully operational and all

tenders of generalized items, with tender opening date on or after 15-11-2011,

are mandatorily invited on-line.

DGS&D has finalized a procedure for secure on-line placement of supply order

through user login-id, password and digital signature of the officer placing such

supply order. A Channel of authentication has also been prescribed. From

1.10.2008, placement of on-line Supply Order has been made mandatory for all

Central Government Director Demanding Officers (DDOs) except for items viz.

Primary Oil, Automobiles and Spares. During the financial ear 2011-12 till 31-12-

2011, 73796 Nos. of on line supply order and 142039 nos. of online Inspection

notes for stores worth Rs. 2189.27 crore, have been issued.

DGS&D budget expenditure for computerization activities for the financial year

2011-12 is Rs. 4.00 crores.

C. Online Services by Director General of Foreign Trade (DGFT)

The Department is committed to simplifying procedures, facilitating electronic

clearances, and putting in place an exporter friendly regime for obtaining

authorizations under various export promotion schemes.The Directorate General

of Foreign Trade (DGFT) is engaged in enabling web based international trade

transactions so as to facilitate exporting community in expeditious import/export

clearances. The Director General of Foreign Trade (DGFT) maintains a

comprehensive website www.dgft.gov.in.The details of ForeignTrade Policy, Hand

Book of Procedures, all important Notifications, Public Notices, Circulars, minutes,

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etc. are available on the website. Single online application form for all the

schemes/ activities is also available on the website. Several steps are being

taken under the Electronic Data Interface (EDI) programme.

Box 3.3

Initiatives under Electronic Data Interface (EDI) Programme

Filing of applications for various authorizations through EDI mode has been

made compulsory in majority of schemes.

DEPB scheme is completely online. The message exchange between DGFT

and Customs for Advance Authorization and EPCG licenses has been

implemented for all EDI ports for authorization issued after 1.4.2009.

24 out of 37 EPC’s have registered on DGFT’s Webside. Complete online

uploading of RCMC data is expected to mapped shortly.

Two additional banks namely (i) Bank of Baroda (ii) United Bank of India have

also been included for Electronic Fund Transfer(EFT) facility for DGFT users.

• An offline data entry module has been provided for Advance Authorisation

and EPCG applications in August, 2010 to provide flexibility in filing

applications by exporters, and reducing online server time which would

improve efficiency and reduce cost.

• Online filing of IEC application and its online processing w.e.f. 1.1.2011.

Online validation of PAN is also likely to be integrated by 31.1.2011 for which

NSDL has been engaged.

• Message exchange of DFIA authorization would be started from 13.10.2011

between DGFT and customs.

• Software to make PRC cases filing, processing and tracking an ‘online’

system is under development. The tracking/Monitoring package for Advance

Authorization and EPCG has been functionally tested and placed on

intranent. It will be made available to Regional Authorities after security audit

by NIC, which is likely to complete by 31.12.2011.

D. Use of Information and Communication Technology

Information and Communication Technologies (ICT) and its tools have become

integral part of the functioning of the Department. These have facilitated the efficient

and effective administration, monitoring, trade facilitation, delivery of services and

information dissemination to the users. The Computer Centre in the department is

being manned and managed by National Informatics Centre (NIC). It provides

necessary assistance and support in developing and implementing various ICT

systems and applications for decision making, monitoring, analysis, office

automation and e-governance. All officers/ divisions/ sections are equipped with

necessary ICT infrastructure for their desktop computing and functioning. These

are connected to a Local Area network (LAN), providing round the clock facilities for

e-mail, and Intranet/ Internet operations. The ICT infrastructure in the department is

being regular reviewed for its better utilization and upgradation.

Video conferencing is being effectively used as cost effective solution through Video

Conferencing Studio at NIC- Head Quarter for national and international meetings

and negotiations. An Executive Video Conference System (EVCS) is also available

in the Chamber of the Commerce Secretary, connecting Secretaries to Government

of India and all Chief Secretaries/ Administrators of States/UTs over NIC network

(NICNET) to facilitate quick appraisal of inter-ministerial and state matters.

Various ICT based systems, applications and packages have been deployed in the

department in order to provide necessary support in decision making, monitoring,

analysis, office automation and e-governance. The electronic interface with

community partners for trade facilitation, electronic payment through net banking

and digital signature are integrated with the systems wherever applicable.

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The website of the department (http://commerce.gov.in) is being regularly enriched

and strengthened for information dissemination, electronic delivery of services,

trade facilitation and monitoring. It provides Government-to-Citizen (G2C) and

Government-to-Business (G2B) interfaces. A separate website for the Standing

Committees on Promotion of Exports by Air and Sea (http://escope.gov.in), is also

hosted to provide an open forum for the Trading community for direct and quick

interface for communication and information dissemination with the Department.

An Intranet Portal is hosted in the department for providing e-governance and office

automation applications to the employees and internal users. It is being regularly

updated with latest circulars and notices.

ASIDE

An assessment of the working of the ASIDE Scheme was done by the IL&FS study team

Mid Term Appraisal of the Scheme

A mid-term appraisal of scheme during 11th Five Year Plan has been commissioned to IL&FS, report has been received.

VII. Social and Gender Empowerment Processes

In accordance with the policy of the Government of India, a SC/ST cell is

functioning in the Department of Commerce to ensure due compliance of the orders

of reservation issued from time to time in favour of SCs and STs. A Liaison Officer

has been nominated in the Department to ensure prompt disposal of the

grievances of the employees of these classes and to scrutinize and consolidate the

statistical data. So far as services and posts in the Department and organizations

under its administrative control are concerned, none of the posts has been

exempted from the purview of the reservation orders. The Liaison Officer examines

and rectifies, wherever necessary, the roster maintained by the various

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organizations for ensuring representation to SCs/STs/OBCs. The Liaison Officer

also provides relevant guidelines to the officers in the Department of Commerce,

its attached and subordinate offices and the Public Sector Undertakings, in

accordance with the instructions issued by the Department of Personnel and

Training (DOP&T) from time to time. The Cell is also looking after the work

regarding implementation of the Government Orders in respect of reservation for

Other Backward Classes (OBCs) to the extent of 27% in direct recruitment.

The Commodity Boards under the administrative control of the Department of

Commerce have certain specific schemes under Special Tribal Plans, which are

operated with a view to supplementing the efforts of the Government in improving

the socio-economic conditions of the SC/ST workers in the non-traditional areas.

The attached and subordinate offices, PSUs, autonomous bodies etc. under the

administrative control of the Department have also undertaken number of welfare

activities.

Women Cell

An independent Women Cell has been set up in Department of Commerce with

the following broad functions:

Prevention and redressal of sexual harassment at workplace,

constitution of Complaints Committee in the Department of

Commerce, its attached and subordinate offices, PSUs, autonomous

bodies etc., monitoring their performance and providing necessary

help and guidance.

Coordination with the Department of Women & Child Development,

National Commission for Women and other concerned agencies in

respect of the matters connected with welfare and economic

empowerment of women and other related issues.

Review of the various programmes of Department of Commerce to

ensure that various aspects of women welfare, development and

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empowerment are promoted through the programmes and schemes of

the Department.

Preparation of Action Plan pertaining to the Department of Commerce

for the overall development of women in line with the National Policy

for empowerment of women.

Other incidental matters pertaining to the subject.

The Women Cell actively participated in the various workshops/seminars on

gender issues organized by National Commission for Women and others.

Gender Budget Cell

The Gender Budget Cell is functioning in the Department to ensure that the

budget allocations made in the various schemes implemented by the Department

benefitted women. Most of the schemes under the Commodity Boards such as

Tea, Rubber, Coffee, Spices etc. as well as agencies like the Indian Instituting of

Packaging, the Marine Products Export Development Authority, and the

Footwear Design & Development Institute etc. have programmes targeting

women beneficiaries. Though funds are not specifically earmarked for this group,

all the aforementioned schemes subsume the targeted category.

VIII. Policy Initiative

Following New schemes have been proposed by Department of Commerce for

12th Five Year Plan (2012-17)

Gems and Jewellery

i) Convention Centre in Mumbai on PPP basis: To hold large scale

international/Indian exhibitions, seminars etc. for organizing business to

business trade shows and displaying the new product lines to the global

world. The Centre would be useful for exhibitions and business meets to

display products of industries such as apparel, electronics, pharmaceuticals,

machine tools, automobiles, oil and gas etc.

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ii) Common facility centre on PPP basis: After the 2008 global recession, the

Gems and Jewellery sector is faced with the acute scarcity of skilled artisans

as a large number have migrated to their home towns in Gujarat. The artisans

engaged in diamond cutting and polishing industry are reluctant to return to

the city because of high cost of living and loss of confidence because of

sudden unemployment. Urgent steps are needed to maintain Indian’s

competitiveness in this sector which is mainly due to its human resource.

Therefore, it is necessary to provide additional facilities to attract the Gems &

Jewellery workers in clusters.

iii) Gem Bourse in Jaipur on PPP basis: Jaipur is an international hub for color

stone studded jewellery. To institutionalize the largest and oldest industry of

the city, it is proposed to develop Jaipur as an international hub of gemstones.

The Gem Bourse in Jaipur will act as a market place focusing on the activities

to promote trade and the specific needs of the industry creating a platform for

the buyers from around the world for purchasing gems and jewellery. It would

have facilities such as Customs, Banks, Clearing and Forwarding Agents, etc.

iv) Gem & Jewellery Park in Mumbai on PPP basis : Mumbai has developed

as one of the foremost trading centre of the diamonds in the world accounting

for 90% of the total diamond exports of the country to plan for the future

infrastructure needs to be developed which can integrate the cutting and

polishing of diamonds and the manufacturing of jewellery in the same place.

The integrated facility would provide for workers accommodation, training and

other ancillary facilities like business, hotel convention centre, incubation

centre etc.

v) Technology upgradation in Gems & Jewellery sector on PPP basis :

Gems and Jewellery sector is an important component in India`s export

basket and employs nearly 3.4 million workers. To maintain its

competitiveness, the sector requires constant technology upgradation.

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Pharma

vi) R & D Financing and Cluster Development for Pharma through a

venture capital fund: Strengthening the manufacturing of Pharma Products

for increasing pharma exports.

vii) Reimbursement for plant registration and bio similar/bio equivalent

studies to pharma exporters: Incentivising new market access to pharma

exporters.

Leather

viii) Footwear Design and Development Institute (FDDI) : After the success

achieved in the establishment of FDDI, NOIDA, and upgradation of FDDI,

Fursatganj, Rae Bareilly another branch of FDDI is being set up at Jodhpur.

In the 12th Plan it is proposed to establish three additional branches of FDDI

to meet the requirements of the leather industry for trained human resources

and to provide consultancy in design, technology and quality. To create

strong institutional capacity within the country for the development and

growth of the entire leather sector i.e footwear, apparels, retail management

etc. FDDI intends to set up a networking centre and take up responsibility as

a Centre of Excellence

ix) Creation of Venture Capital Fund for corporatization of Leather sector -

creation of seed fund.

Tea Board

x) Small Growers Development Scheme: To provide due consideration to the

special needs of the small growers sector and increasingly important role that

the sector is playing in the Indian tea industry, a separate scheme has been

proposed for the sector with various sub-components covering all aspects of

development for the sector. Small growers have significant skill-gaps and very

large training needs which can’t be catered to through a few centralized

institutions. There is a need for undertaking more field oriented training

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programs for the small growers, while making available a team of

qualified/trained advisors to address their needs on a continuous basis. In

addition, the Small Growers’ Development Directorate would also organize

training workshops and field training sessions for STGs and their workers on a

regular basis. In addition to technical trainings, small growers and SHGs need to

be provided extensive training on group formation, basic accounting and book

keeping, office management, office automation, leadership skills, etc.

xi) Monitoring the implementation of Regulatory provisions of Tea Act: There

are certain regulatory and compliance related activities of Tea Board that are not

covered under any scheme. Such activities include Mandatory check-

mechanism to ensure quality of tea meant for export from India, Mandatory

check mechanism to ensure supply of quality Green leaf to the manufacturer

and the process of manufacturing quality tea for the consumers, regular

monitoring mechanism of checking of Tea Waste generated at the factory level

to ensure maintenance of quality tea at the factory, introduce Region wise/State

wise study on the status of the tea estates / tea manufacturing factories,

undertaking of Micro level study on the extent of implementation of the different

regulatory provisions of Tea Act and Control Orders, undertake a Region

wise/State wise assessment of extent of programme implementation by the

beneficiaries under different schemes of Tea Board, its impact & economic

analysis, study the cost of production of tea leaf of the small grower vis-à-vis by

estates and cost of manufacturing of made tea by the Estate Factories/Bought

Leaf Factories & Co-operative factories, Strengthening of e-auction and bringing

other allied activities under electronic platform.

Rubber Board

xii) Statistical and Information Services and E-governance: To enhance the

quality and periodicity of statistical publications and to disseminate relevant

information among rubber industry stakeholders.

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DGFT

xiii) Niryat Bandhu Scheme: While making an announcement on Foreign Trade

Policy on 13th October 2011, the Commerce and Industry Minister announced a

new ‘Niryat Bandhu’ Scheme for mentoring first generation entrepreneurs.

Under the Scheme, the officer (Niryat Bandhu) would function in the ‘Mentoring’

arena and would be a ‘Handholding’ experiment for the Young Turks in

International Business enterprises. The officers of DGFT will be investing Time

and Knowledge primarily to mentor the interested individuals who want to

conduct the business in a legal way. Over time, it would be expected to develop

a class of businessmen who carry out the international business in an ethical

manner. In order to make this scheme functional, the following needs to be

done-

(a) Equipping the DGFT officials with requisite knowledge and

building capacity to function effectively as ‘Niryat Bandhu’

(b) Training/capacity building of new entrepreneurs

(c) Advertisement, Publications and research

(d) Travelling expenses of Niryat Bandhu.

xiv) Training/capacity building of officials of DGFT: DGFT, as a nodal

organisation to promote exports as well as act as a trade facilitator must also

organise several capacity building programmes every year for the exporting

community. This has become more important due to the recent economic crisis

and the future targets set for Indian exports. When India is looking for building

Towns of Export Excellence and industrial corridors/clusters, it will be important

that DGFT on its own organizes such capacity building programmes . A tailor-

made training of officers working in DGFT is required to be organised, keeping

in view their specialised nature of work. Such training can be organised on a

compulsory basis keeping in view the length of service. Officers must go on

training after completion of 10, 15, 20 and 25 years. The module and duration

of such training programmes can vary as it would need to be on the basis of

organisational requirement. The duration of training can be from 4 weeks to 12

weeks. The objective of this training is to equip the officials manning the DGFT

110

xv) by giving them adequate training on personal management, MIS, ICT, global

business environment and international trade etc.

xvi) Administrative and residential Buildings: The DGFT offices do not have

their own office space and are mostly in a rented property. The staff and

officials do not have their own residential campus (like Customs, Income Tax

etc.). The offices are also not fully equipped with modern facilities and several

enforcement and litigation related work suffers due to the lack of the basic

minimum infrastructure needs. The DGFT offices can be asked to take up with

the State Governments for offices as well as residential houses. Alternatively,

the property can be acquired through outright purchase as well.

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CHAPTER-IV

REVIEW OF PAST PERFORMANCE

Exports, Imports and Balance of Trade

Merchandise exports, imports and balance of trade during the 10th Plan (2002-03 to

2006-07) and the 11th Plan (2007-08 to 2011-12) are in Table 1. During the 10th

Plan, Merchandise exports increased at a CAGR of 24.45% while imports grew at a

faster pace of 31.86 %. This was a period when growth in world trade and output

was on an upswing. The 11th Plan period has alternated between global financial

and economic crises and recovery. The year 2009, one of the years of the 11th

Plan, was characterized by a rare occurrence, negative growth in world output (-

0.5%) and trade (-10.8%). In the first four years of 11th Plan, merchandise exports

increased at CAGR of 15.5% and imports by 13.7%. Exports and imports declined

in 2009-10 vis-à-vis the preceding year but recovered in 2010-11.

Details related to exports, imports and balance of trade since 2003-04 are indicated in Table-4.1.

Table 4.1 Exports, Imports & Balance of Trade

(Values in US $ billions)

Year Exports Growth

Rate (%) Imports

Growth

Rate (%)

Balance

of Trade

2002-03 52.7 20.3 61.4 19.4 -8..7

2003-2004 63.8 21.1 78.2 27.3 -14.3

2004-2005 83.5 30.9 111.5 42.7 -28.0

2005-2006 103.1 23.4 149.2 33.8 -46.1

2006-2007 126.4 22.6 185.7 24.5 -59.3

2007-2008 163.1 29.1 251.7 35.5 -88.5

2008-2009 185.3 13.6 304.0 20.7 -118.4

2009-10 178.7 -3.5 288.4 -5.1 -109.7

2010-11 251.1 40.5 369.8 28.2 -118.6

2010-11(April-Dec) 172.9 269.1 -96.2

2010-11(April-Dec) 217.7 25.8 350.9 30.4 -133.2

Source: DGCI&S (P) Provisional

112

The cumulative value of exports during 2010-2011 was US $ 251.1 billion as

against US$ 178.7 billion in 2009-10 registering a growth of 40.49 per cent.

During the year 2011-12 (April- December) the cumulative value of exports

was US$ 217.7 billion as against US$ 172.9 billion during the same period in

2010-11 registering a growth of 25.8 per cent.

Cumulative value of imports during 2011-12 (April- December) was US$

350.9 billion as against US$ 269.1 billion during the corresponding period of

the previous year registering a growth of 30.4 per cent.

The trade deficit for April-December, 2011-12 was estimated at US$ -133.2

billion which was higher than the deficit at US$ 96.2 billion during April-

November, 2010-2011.

World Trade Scenario

As per IMF’s World Economic Outlook October, 2011, world trade recorded

its largest ever annual increase in 2010, as merchandise exports surged 14.4 per

cent. The volume of world trade (goods and services) in 2011 is expected to slow

down to 7.5 per cent compared to the 12.8 per cent achieved in 2010. Growth in the

volume of world trade is expected to decline in 2012 to 5.8 per cent as per IMF

projections.

The IMF has moderated its growth projections of world output to 4 per cent

in 2012. The advanced economies are expected to grow at 1.9 per cent in 2012

while the emerging and developing economies to grow at 6.1 per cent. The

projected growth rates in different countries are expected to determine the markets

for our exports.

As per WTO’s International Trade Statistics, 2010, in merchandise trade,

India is the 20th largest exporter in the world with a share of 1.4 per cent and the

13th largest importer with a share of 2.1 per cent in 2010.

The year 2011 has been a difficult year with Japan facing a major

earthquake and tsunami, the swelling of unrest in the Middle East oil producing

countries, the slowing down of US economy and the Euro area facing major

financial turbulence.

112(A)

The current global economic slowdown has its epicenter in the Euro-region but the

contagion is being witnessed in all major economies of the world. As a result,

India’s short-term growth prospects have also been impacted.

Department’s Strategy for Doubling of Exports

Keeping in view the urgency of managing the growing trade deficit and uncertain

global economic scenario, Department of Commerce, in May 2011 finalised a

Strategy Paper for doubling merchandise exports in three years from US $ 246

billion in 2010-11 to US $ 500 billion in 2013-14. Exports were envisaged to

increase at compounded average growth of 26.7% per annum. Major highlights of

the Strategy are as under:

Using a mix of policy instruments including, fiscal incentives, institutional

changes, enhanced market access across the world and diversification of

export markets, improvement in infrastructure related to exports, reducing

transaction costs and refund of all indirect taxes and levies.

Aggressive export promotion of high value products that have a strong

domestic manufacturing base. Special emphasis on exports of engineering

goods, which now account for over 20% of our total export basket.

Leather, gems & jewellery and textile sectors are labour intensive and have

been areas of strength in our export markets.

Product diversification and value addition in these sectors is essential.

The core of the market strategy is to retain presence and market share in our

old developed country markets, move up the value chain in providing

products in these markets and open up new vistas, both in terms of markets

and new products in the new markets.

Focus on markets in Asia (including ASEAN), Africa and Latin America to

strengthen our presence in newly opened up markets.

Strengthen efforts to build a brand image for important Indian exports, and

promote a thrust for quality up-gradation. Domestic standards for export

related products be raised, assurances put in place of quality enforcement

through appropriate agencies and certification of export products

113

encouraged. To back up these efforts, a Brand India promotion campaign for

key export products initiated.

The scheme-wise performance in respect of major schemes being implemented by

the Department is given below:-

I. Assistance to States for Development of Export

Infrastructure and Allied Activities (ASIDE) Scheme

Basic objective of the scheme is to involve the States / UTs in export efforts by

providing incentive-linked assistance to concerned Governments and to create appropriate

infrastructure for development and growth of exports. It has been possible to achieve this in

spite of various constraints as is evident from active participation of States/UTs in

sponsoring a large number of export related projects for assistance from ASIDE Scheme.

Efforts have also been made by them to leverage ASIDE funds for taking up several

projects. Demands received far outweigh availability of funds. Under the State Component

of the said scheme a total number of 1432 projects worth Rs. 18026.45 crore have been

approved by the State Level Export Promotion Committees (SLEPCs) since 2002-03 to

2011-12 (as on date). Out of this Rs. 5566.46 crore only has been proposed by State

Govt./UTs to be met from the ASIDE funds released to them under the state component and

the balance of Rs. 12459.99 crore have been/are being leveraged from State Govt/UTs

contribution and other sources identified by the State Govt./UTs. Similarly in the Central

Component a total of number 405 projects worth Rs. 2204.98 crore have been approved so

far and out of that Rs. 1279.54 crore only has been/ is to be funded from the central

component of ASIDE scheme. Balance Rs. 925.44 crore has been/is being leveraged from

other sources including states, private partnership and agencies of states. Thus in the project

under central component of the said scheme also it has been possible to involve

states/central agencies.

114

During 2010-11, total number of projects approved by State Governments under ASIDE

scheme is 110 worth Rs. 950.91 crore have been approved by the State Level Export

Promotion Committees (SLEPCs). Out of this Rs. 539.76 crore only has been proposed by

state govt./UTs to be met from the ASIDE funds and the balance of Rs. 411.15 crore have

been/are being leveraged from State Govt/UTs and other sources identified by the State

Govt./UTs. Similarly in the central component a total of number 23 projects worth Rs.

192.21 crore have been approved so far and out of that Rs. 136.82 crore only has been/ is to

be funded from the central component of ASIDE scheme. Balance Rs. 55.39 crore has

been/is being leveraged from other sources including states, private partnership and agencies

of states.

The past performance of the scheme has been reviewed by IL&FS and as per the

Study Report submitted by them, some of the major achievements of the scheme are as

under:-

(i) ASIDE funds have been able to bring Economic and Social benefits like

growth in exports, growth in employment, growth in per-capita income and

increase in connectivity, the impact has been restricted to local or at the most

city level where such projects have been undertaken due to the fact that

contribution under ASIDE is extremely low vis-à-vis total infrastructure

development cost.

(ii) Investment in infrastructure has resulted in increase in exports as would be

evident from the fact that India’s exports has gone up from Rs. 208,978 crore

in 2001-02 to Rs. 456,422 crore in 2005-06 registering a compound annual

growth of 121%.

(iii) Funding pattern in respect of various projects shows a healthy mixture of

ASIDE funds, State Government Funds, and Private Sector Participation, in

a ratio of 4:4:2 indicating successful leverage of funds.

115

A mid-term appraisal of scheme during 11th Five Year Plan has been commissioned

to IL&FS, the report has been received. Salient findings of this report are as under:-

(i) During current appraisal process it has been now established that there has

been an upswing in exports from States and in concomitance there has been

an upswing in allocation, sanction and utilization and number of projects

being implemented.

(ii) Exports have more than doubled in the last four years and although the

increase in exports cannot be attributed solely to ASIDE, the scheme has

contributed substantially and handsomely to export efforts. In fact, most of

the states are now warming up to the scheme having understood and

grasped benefits of leveraging ASIDE funds.

(iii) A quantum jump in allocation of funds is imperative if substantial

improvements are to be expected in infrastructure, and therefore, exports.

II. Special Economic Zones (SEZs)

Setting up of SEZs is one of the major initiatives undertaken by the

Department. The Special Economic Zones (SEZs) set up as enclaves, separated

from the Domestic Tariff Area by fiscal barriers, are intended to provide a duty free

environment for export production. There are seven EPZs set up by the Central

Government which were converted to SEZs upon announcement of the SEZ Policy.

Santacruz Special Economic Zone (SEEPZ SEZ)

The Santacruz Special Economic Zone was set up in September 1974 in 100 acres

of land. At present, there are 350 units in operation in the zone. The export

performance of the zone since 2005-06 is given in Table 4.2.

Table 4.2

Export Performance by SEEPZ

116

(Rs. Crore)

Year Target Exports

2006-07 ---- 12,047.67

2007-08 ----- 11,268.53

2008-09 ---- 10,134.00

2009-10 ---- 10,151.00

2010-11 ---- 11,582.00

2011-12 (Upto Oct., 2011)

----- 17,022.82

Source:SEEPZ

Noida Special Economic Zone

The Noida Special Economic Zone (NSEZ) was set up in 1985 in Noida (U.P). This

zone has been developed in a phased manner on 310 acres of land. At present,

there are 290 units in operation providing employment to 37533 persons. The NSEZ

is a multi product zone with units engaged in manufacturing of electronic items,

software products, engineering goods, gem and jewellery, toys, garments and

pharmaceuticals, Leather & Sports, Plastic & Rubber, Food & Agro etc. The export

performance of the zone since 2005-06 is given in Table 4.3.

Table 4.3

Export Performance by NSEZ

(Rs. Crore)

Year Target Exports

2006-07 5,700.00 6,893.00

2007-08 7,000.00 16,843.36

2008-09 10,000.00 16,308.00

2009-10 9,000.00 8,560.27

2010-11 9,000.00 9,405.88

2011-12 (April-Sept.) 4,500.00 4,160.88

2011-12(full year) 9,000.00 8400.00

(projected )

Source:NSEZ

Kandla Special Economic Zone(KASEZ)

Kandla Free Trade Zone was set up in 1965 as Asia’s first export processing

Zone(EPZ) was converted into Special Economic Zone(KASEZ) with effect from

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November, 2000. Kandla SEZ is situated in the Gulf of Kutch on the west coast of

India, at distance of only 9 kms. Away from the major port of Kandla, fully

developed all weather port. Mundra port with world class container terminal is only

60 kms. away. The Zone’s adjectives are earning foreign exchange for the country,

developing more employment opportunities. The zone has achieved all these

objectives in significant measures.

The total number of units operating in the zone are 185 and 15 are on the approved

list at various stages of implementation. New industries are coming up for various

products like auto components, drugs and pharmaceuticals, chemicals and

readymade garments. Developed plot and readymade sheds are made available to

them. The working unit includes those for manufacturing of engineering goods,

readymade garments, perfumes and cosmetics, castor oil products and plastic

products.

About 15 new units are expected to be added this year, increasing the potential of

exports over Rs. 1500 lakh and additional investment to the tune of Rs. 3240 lakh.

Table 4.4

Export Performance by KASEZ

(Rs. Crore)

Year Target Exports

2006-07 ---- 1517.00

2007-08 ----- 1938.85

2008-09 ---- 2420.38

2009-10 ---- 2205.79

2010-11 ---- 2672.29

2011-12 (Upto Sept., 2011)

----- 1542.60

Source:SEEPZ

Madras Special Economic Zone (MEPZ SEZ)

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MPEZ Special Economic Zone was established in May1984 as a Multi product

Export Zone with the main objective of augmenting exports and thereby enhancing

foreign exchange earnings by setting up Units inside the Zone. The Zone ensure

excellent infrastructure required for setting up industrial units, including developed

plots and modules in Standard Design Factory buildings for immediate occupation.

There are at present 114 active exporters within the Zone. The year-wise exports

from MEPZ SEZ since 2006-07 are given in Table 4.5.

Table 4.5

Export from MEPZ SEZ (Rs. Crore)

Year Target Exports

2006-07 2000.00 2382.63

2007-08 2500.00 3168.53

2008-09 4000.00 4139.15

2009-10 4600.00 5977.59

2010-11 ---- 9019.08

2011-12(upto Sept.,

2011)

---- 3435.33

Source : MEPZ SEZ

Cochin Special Economic Zone (CSEZ)

CSEZ, a multi-product zone, came in to existence in 1984 and became operational

in 1986. It was converted into a Special Economic Zone on November 1, 2000.

CSEZ stands out amongst the SEZs in India as having the best infrastructure. It is

the only Government owned SEZ in India distributing power within the Zone. It has

an integrated water management system comprising a 2.25 mld water supply

system and a 1.8 mld Common Effluent Treatment Plant. The Zone has round the

clock on-site Customs clearances. A VSNL 15 GBPS gateway is installed in the

Zone which provides internet connection through optical fibre cable to users. The

Zone has state-of-art 1000 line telephone exchange, a video conferencing studio, a

foreign post offshore banking unit, a health dispensary and branches of State Bank

of India and Indus Ind Bank with ATM facilities. CSEZ has also pioneered public-

119

private participation in infrastructure development. In the IT sector, a 2.60 lakh sq.ft

Software Park Technopolis has been developed with private participation at a cost

of Rs 40 crore. The year-wise exports since 2006-07 are given in Table 4.6

Table 4.6

Export from CSEZ

(Rs. Crore)

Year Target Exports

2006-07 ---- 1,037.52

2007-08 ---- 1,037.52

2008-09 ---- 11,549.05

2009-10 ---- 17,003.53

2010-11 ---- 18311.97

2011-12(upto Sept.,

2011)

---- 13752.71

Source: CSEZ

Falta Special Economic Zone (FSEZ)

The Falta Special Economic Zone has been set up over an area of 280 acres. The

zone is engaged in manufacturing of electronic items, engineering goods, gems &

jewellery, readymade garments, rubber products, frozen foods, tea etc. The year-

wise exports from the zone since 2006-07 are given in Table 4.7.

Table 4.7 Export from FSEZ

(Rs. Crore)

Year Target Exports

2006-07 1,000.00 998.70

2007-08 1,000.00 1,026.30

2008-09 ---- 961.26

2009-10 ---- 1,172.56

2010-11 ---- 14852.43

2011-12(upto Sept., 2011) ----- 6412.00

Source : FSEZ

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Visakhapatnam Special Economic Zone (VSEZ)

The Visakhapatnam Special Economic Zone was established in March, 1989 as a

multi product Export zone. At present, there are 55 active exporters within the zone.

The year-wise exports from the zone since 2006-07 are given in Table 4.8.

Table 4.8 Export from VSEZ

(Rs.Crore)

Year Target Exports

2006-07 600.00 738.00

2007-08 710.00 736.77

2008-09 850.00 901.84

2009-10 900.00 917.85

2010-11 1100.00 1583.00

2011-12 (upto Dec., 2011) 1402.00 1568.00

Source : VSEZ

In addition to the above mentioned 8 Central Government owned SEZs, 12 SEZs

were set up by the State Governments/private sector prior to the coming into force

of the SEZ act, 2005.

After the coming into force of the SEZ Act, 2005 on 10th February 2006, 584 formal

approvals (as on 20.01.2012) have been granted for setting up of Special Economic

Zones. Out of these, 381 SEZs have been notified and are in various stages of

operation.

Development of Infrastructure in Special Economic Zones

The capital outlay of Special Economic Zones for development of infrastructure is

funded under the Assistance to States for Developing Export Infrastructure and

Allied Activities (ASIDE) Scheme from 1.4.2002.

Employment in the SEZs

121

As on 31st December, 2011, the total direct employment in the SEZ sector is

estimated at 8,15,308 persons. It includes incremental employment of 6,80,604

persons generated since February, 2006. The composition of total employment

generated in the SEZ sector is given in Table 4.9.

Table 4.9

Employment in SEZs (as on 31st Dec.2011)

Sl.No Category Employment (Nos.)

1. 8 Central Govt. SEZs 2,13,535 persons

2. 12 Private/State Govt. new generation SEZs set

up/notified prior to SEZ Act, 2005

78,640 persons

3. SEZs notified under the SEZ Act, 2005 5,23,133 persons

TOTAL 8,15,308 persons

Source : SEZs

Investment in the SEZs

As on 31st December, 2011, the total private sector investment in the SEZ sector in

India is estimated at Rs.2,49, 630.00 core. Incremental private investment after the

SEZ Act, 2005 came into force, is estimated at Rs.2, 45, 595.31crore. The

composition of the total private sector investment (as on 31st December, 2011) is in

Table 4.10.

Table 4.10

Private Investment in SEZs (as on 31st Dec.2011)

S.No. Category Investment (Rs. Crore)

1. 8 Central Govt. SEZs 10,670.81

2. 12 Private/State Govt. new generation SEZs

set up/notified prior to SEZ Act, 2005

7,800.14

3. SEZs notified under the SEZ Act, 2005 2,31,159.14

TOTAL 2,49,630.82

Exports from SEZs

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As on 31st December, 2011, 154 SEZs have commenced exports. The exports in

the current year i.e. 2011-12 (up to 31st December, 2011) from the SEZs in the

country as a whole were of the order of Rs 2,60,972.89 crore as compared to Rs

3,15,867.85 crore during the complete year of 2010-11. Exports from the

functioning Special Economic Zones during the last six years are as indicated in

Table 4.11.

Table: 4.11

Exports from the SEZs (2005-2006)

Year Value (Rs. Crore) Increase (%) (Over previous year)

2006-2007 34,615 52

2007-2008 66,638 93

2008-2009 99,689 50

2009-10 2,20,711 121

2010-2011 3,15,867.85 43.11

2011-12 (upto 31st

December, 2011)

2,60,972.89

Source : SEZs

Tea Board

Tea Board was constituted as a statutory body on 1st April, 1954 under Section (4)

of the Tea Act, 1953. It is an apex body, which looks after the overall interests of

the tea industry. The Board, with its Head Office at Kolkata, is headed by a

Chairperson. It has 30 Members drawn from different stake holders of the tea

Industry and sixteen region/sub-regional offices. The Board functions as an apex

body for the all round development of the tea industry. Tea Board has wide

functions and responsibilities which include measures for development of the tea

industry, extending financial and technical assistance to the tea growers,

manufacturers and producers, export promotion and domestic generic promotion,

regulating and controlling different marketing activities including that of tea auctions,

facilitating R&D activities, market liaison, assistance to labour welfare activities,

maintenance of statistical data, etc.

Table 4.12 gives the scheme wise year-wise performances during 2007-11 and

2010-11)(April 2011-November 2011).

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IV. Coffee Board

Coffee Board is a statutory organization constituted under the Coffee Act, 1942 and

functions under the administrative control of the Ministry of Commerce and Industry,

Government of India. The Board comprises of 33 Members including the

Chairperson, who is the Chief Executive. The remaining 32 Members representing

the various interests are appointed as per provisions of Section 4(2) of the Coffee

Act, read with Rule 3 of the Coffee Rules, 1955. The Coffee Board is mainly

engaged in the areas of research, extension, development, quality up-gradation,

economic & market intelligence, external and internal promotion and labour welfare.

The Board has a Central Coffee Research Institute at Balehonnur (Karnataka) and

Regional Coffee Research Stations at Chettalli (Karnataka), Chundale (Kerala),

Thandigudi (Tamilnadu), R.V. Nagar (Andhra Pradesh), Diphu (Assam) and Bio-

technology Centre at Mysore. There are also several Extension offices located at

coffee growing areas of Karnataka, Kerala, Tamil Nadu, Andhra Pradesh, Orissa

and North Eastern Region. Scheme wise performance during, 2008-09, 2009-10,

2010-11 & 2011-12(April-Sept., 2011) are given in Table 4.13.

124

V. Rubber Board

Rubber Board is a statutory autonomous body constituted under the Rubber Act,

1947 with the primary objective of the overall development of the rubber industry in

the country. The Board is headed by a Chairperson and with head office in

Kottayam, Kerala. The Board has been implementing several schemes for the

development of the rubber industry in the country under different five-year/annual

plans. The functions of the Board broadly are: undertaking & assisting scientific

technological and economic research; imparting training to students/growers on

improved methods of cultivation: manuring and spraying; rendering technical advice

to rubber growers; marketing; collecting statistics from owners of estates; dealers

and manufacturers; securing better working conditions and providing/improving

amenities and incentives for workers.

Key statistics on the NR sector from 2006-07 to 2010-11(till November 2010)

and projections for 2011-12 are presented in the following table.

Table 4.14: Key statistics on the NR sector in India

Year Planted

area (ha)

Production (tonne)

Export (tonne)

Import (tonne)

Consumption (tonne)

2007-08 635400 825345 60353 86394 861455 2008-09 661980 864500 46926 77762 871720 2009-10 686515 831400 25090 177130 930565 2010-11 711560 861950 29851 188337 947715 2011-12* 737000 902000 50000 120000 977000

* Projections

Planted area

The rubber planted area increased by 3.6 per cent over the previous year in

2010-11 and extended to 711,560 ha. There are more than one million small and

marginal farmers with an average size of holding of 0.54 ha engaged in rubber

cultivation. The smallholding sector accounts for 90 per cent of rubber planted area

125

and 93 per cent. The planted area under rubber is projected to reach 737,000 ha

in 2011-12 and 761,000 ha in 2012-13.

Production

Production of NR in 2010-11 increased by 3.7 per cent irrespective of the excessive

rains during the peak yielding months of October and November. The country

retained its premier position in productivity in 2010 with a productivity of with 1784

kg/ha. Production of NR in 2011-12 and 2012-13 would be 902,000 tonnes and

944,000 tonnes respectively.

Export & Import

Export of NR in 2010-11 was 29,851 tonnes as against the target of 50,000 tonnes.

Import of NR in 2010-11 amounted to 188,337 tonnes. The target for NR export

should not be considered rigid, as the objective of export promotion has to be

appreciated. Export of NR is perceived as a strategy to adjust demand-supply

balance in the domestic market so as to keep the domestic rubber prices close to

those in the international market. Export and import of NR would primarily depend

on the difference between the prevailing NR prices in the domestic and international

markets.

Consumption

One of the unique advantages of the Indian NR sector is the existence of a well-

established rubber goods manufacturing sector in the country assuring a market for

the locally produced rubber. Production of NR during the last 10 years, viz., 2001-

02 to 2010-11 formed 96.8 per cent of consumption. Consumption of NR in 2010-

11 increased at an annual rate of 1.8 per cent. Consumption of NR is projected to

reach 977,000 tonnes in 2011-12 and 1021,000 tonnes in 2012-13.

126

Scheme-wise Physical Targets & Achievement of Rubber Board(Table 4.15)

Schemes Major Physical Components 2010-11 2011-12

Target Achievement Target

Provisional

Achievement upto 30.09.11

Scheme 1 a) New Planting (ha) 2000 2030 2000 3234

Rubber Plantation Development Scheme

(RPDS)

b) Replanting (ha) 6350 4200 6350 1000

c) Input Supply with price concession (ha) 20000 21558 20000 19000

d) Formation of New RPS/SHGs (No.) 150 121 150 39

e) Group Processing Centres (No.) 8 7 8 1

f) Apiculture (nos.) 3000 2555 3000 0

Scheme 2 a)Cross pollination (No.) 11065 0

Research b)Testing of soil. leaf, latex, ethephon and

rainguarding material (No.) No target

fixed 82000 No target

fixed 34941

c)Scientific and popular publications (No.) 210 65

Scheme 3 Technically Specified Rubber (TSR)

Processing Quality Upgradation & Product Development

(PQUPDS)

a) Quality Upgradation (No.) 5 12 5 11

b) Modernisation (No.) 6 13 6 8

Rubberwood

a) Processing, value addition and 4 4 4 2

quality improvement (No.)

b) Waste utilisation and management (No.) 2 3 2 2

Scheme 4 Rubber

Market Development & Export Promotion

(MD&EP)

a) Godown - 100 MT (No.) 5 0 5 0

b) Strengthening RPS sector in marketing (No.) 11 11 11 17

Rubberwood

Rubberwood promotion – domestic (No.) 15 1 15 2

Export Promotion

a) Export of NR (tonnes) 50000 29851 50000 16503

b) Participation in international trade fairs (No.) 10 3 10 1

Scheme 5

Human Resource Development

(HRD)

a) Training (no. of participants) 10020 11174 10020 2459

b) Labour Welfare Programmes (no. of beneficiaries) 24245 14854 26510 8128

Scheme 6 a) New Planting (ha) 5850 4420 7000 6068

Rubber Dev. in the NE Region

(RDNE)

b) Replanting (ha) 350 Nil 350 Nil

c) Input Supply with Price concession (ha) 5000 4200 5000 947

127

VI. Spices Board

REVIEW OF PAST PERFORMANCE Spices Board had been constituted on 26th February 1987 under the Spices Board

Act 1986 (No.10 of 1986) by merging the erstwhile Cardamom Board and Spices

Export Promotion Council with the responsibility of export development and

promotion of 52 spices listed in the schedule of the Act and the overall development

and marketing of both small and large cardamom. The programmes for

development of spices in North East, organic spices, and post harvest improvement

as an export enhancing measure are also undertaken by the Board.

India is considered as the largest producer, consumer and exporter of spices in the

world. The estimated world demand for spices is 1.10 million tons valued US$ 3.48

billion during 2010-11. With the exports of 0.53million tons valued US$ 1.50 billion

the share of India in the world spice trade is 48% in quantity and 43% in value.

As per the latest figures available from the Economic and Statistics Department,

Ministry of Agriculture, the estimated domestic production of spices in the country is

over 5 million tons. Only 10% of this production is exported. Because of the

upwardly mobile middle class population in the country and their changing food

habits, the domestic consumption of spices has increased considerably in recent

years.

Production of Spices Production development of cardamom (small & large) is looked after by Spices

Board and production development of all other spices is under the Union Agriculture

Ministry and the concerned State Agriculture/Horticulture Departments. The

Directorate of Arecanut & Spice Development, Calicut, monitors the Central Sector

Schemes of the Ministry of Agriculture on spices in this regard.

128

Cardamom (small & large) The estimated production of cardamom (small & large) during the last three years is given in table I and II

Table 4.16 State-wise area and production of cardamom (small)

(Area in Hect., Production in Tons)

State 2009-10 2010-11 2011-12(*)

Area Production Area Production Area Production

Kerala 41593 7800 41242 7935 41425 9240

Karnataka 24956 1550 25210 1710 25125 1785

Tamil Nadu 4561 725 4560 735 4560 785

Total 71110 10075 71012 10380 71110 11810

(*) Preliminary estimate

Table 4.17 State-wise area and production of cardamom (large)

(Area in Hect., Production in Tons)

State 2009-10 2010-11 2011-12(*)

Area Production Area Production Area Production

Sikkim 23729 3540 23679 3310 23239 3230

West Bengal 3305 640 3305 608 3305 625

Total 27034 4180 26984 3918 26544 3855

(*) Preliminary estimate

Export of spices

The export of spices from India during the last few years is given below.

Export of spices from India

Year

Quantity (Tons)

Value (Rs.crores)

Value (US$ Million)

2005-06 350,363 2627.62 592.90

2006-07 373,750 3575.75 792.95

2007-08 444,250 4435.50 1101.80

2008-09 470,520 5300.25 1168.40

2009-10 502,750 5560.50 1173.75

2010-11 5,25,750 6840.71 1500.00

2011-12 (Apr-Sept)

2,37,585 4165.59 920.55

129

The spices export from India has continued its upward trend. The export during

2010-11 has been 5,25,750 tons valued 6840.71 crores (US $1500.00 million)

against 5,02,750 tons valued 5560.50 crores (US $1173.75 million) in the last

financial year. Compared to previous year, the spices export in 2010-11 has shown

an increase of 5% in volume and 23% in terms of rupee value. In dollar terms, the

increase is 28%

Major item-wise export of spices during 2010-11 and April-September 2011-12 is given in Table III

Table 4.19 Export of spices from India during 2010-11 and April-September 2011-12

2010-11 2011-12 (April-Sept)

Quantity Tons

Value Qty Tons

Value

(Crores Ml.n US$ Crores Ml.n US$

Pepper 18850 383.18 84.18 11250 311.52 68.84

Cardamom (small) 1175 132.16 29.04 1825 161.00 35.58

Cardamom (large) 775 44.63 9.80 280 22.68 5.01

Chilli 240000 1535.54 337.35 83000 815.25 180.17

Ginger 15750 121.31 26.65 8000 90.02 19.89

Turmeric 49250 702.85 154.41 41500 450.76 99.61

Coriander 40500 166.63 36.61 13500 80.06 17.69

Cumin 32500 395.98 86.99 16000 222.61 49.20

Celery 3750 25.86 5.68 1750 11.43 2.52

Fennel 7250 65.88 14.47 3500 34.18 7.55

Fenugreek 18500 65.48 14.39 10000 32.15 7.10

Other seeds (1) 12500 55.58 12.21 5400 28.70 6.34

Garlic 17300 69.77 15.33 1010 5.98 1.32

Nutmeg & mace 2100 97.77 21.48 1370 86.73 19.17

Other spices (2) 25250 160.15 35.19 20000 147.98 32.70

Curry powders/paste 15250 210.51 46.25 8000 115.53 25.53

Mint products (3) 17450 1696.79 372.77 7650 940.39 207.82

Spice oils & oleoresins 7600 910.62 200.06 3550 608.62 134.50

Total 525750 6840.71 1502.85 237585 4165.59 920.55

(1) include mustard, aniseed, bishops weed (ajwanseed), dill seed, poppy seed etc

(2) include vanilla, tamarind, asafoetida, cassia, saffron etc

(3) include mint oils, menthol & menthol crystal

130

Import of spices

The import of spices is largely taking place for value addition and re-export except

items such as clove, cassia, star anise, poppy seed, etc. which are mainly used for

domestic demand. The import of large cardamom and fresh ginger is mainly taking

place from Nepal under the trade agreement between India and Nepal. The import

of spices like pepper, clove and cinnamon is also permitted under Free Trade

Agreement between India and Sri Lanka.

The Import of spices during 2010-11 was 86775 tons valued at 1175.51 crores (US$

257.00 million) as compared to106700 tons valued at 1100.46 crores (US$ 232.33

million) in 2009-10. During 2011-12, the import of spices up to September 2011 is

48960 tons valued 932.91 crores (US$ 207.09 million).

Plan Schemes

Based on the proposals submitted by Spices Board the Government has approved

the following six schemes for implementation for implementation during the XI Plan

period.

1. Special purpose fund for replanting and rejuvenation of cardamom plantations

2. Export oriented production and post harvest improvement of spices

3. Export development & promotion of spices

4. Export oriented research

5. Quality improvement and strengthening of quality evaluation laboratory

6. Human resource development & capital works

In addition to these schemes, the Government has approved a Scheme for

replantation and rejuvenation of pepper in Wynad district in Kerala and NE with an

outlay of Rs.53.28 crores during October 2009 for implementation during the next

five years. The details of scheme wise approved XI Plan outlays are as follows:

131

Sl.No

Name of the scheme

Approved

outlay in Rs.

Crores.

XI Plan

1 Special purpose fund for replanting and rejuvenation

of cardamom plantations

122.23

2 Export oriented production 82.94

3 Export development & promotion of spices 192.69

4 Export oriented research 20.00

5 Quality improvement 20.00

6 HRD & Capital works 5.00

Total 442.86

1) Export Oriented Production and Post Harvest Improvement of Spices

This scheme with an outlay of Rs.82.94 crores is aimed at improvement of

productivity and production in cardamom (small and large) and post harvest

improvement of spices with export potential. Development of organic spices and

programmes are also increased under this component. During the first four years of

the Plan Rs.73.70 crores has been expended against the budget of Rs.75.18 crores.

The schemes provide financial assistance for irrigation and land development, rain

water harvesting, improved cardamom Curing Devices, New Planting, Pepper

Planting, Organic Farming, Threshers, Post Harvesting Improvement of spices,

Extension Advisory Services.

2) Export Development and Promotion of Spices

The scheme with an outlay of Rs.192.69 crores aims at accelerating the pace of

spices exports from India. The promotional programmes are expected to provide a

competitive edge to the exporter. The market development activity focuses on

quality, value addition and technology up gradation. During the first four years of the

plan Rs. 89.26 crores has been expended against the allocation of Rs.92.32 crores.

Under this scheme assistance is provided for adoption of high-tech, setting up in-

house lab, quality certification, sending business samples abroad, product

development and research, setting up of infrastructure for common cleaning,

grading, packing, storing and processing facilities, market study and participation in

132

International fairs/seminars/meetings. All major physical targets like adoption of

high-tech, technology and process up gradation, setting up of in-house lab, quality

certification, participation in International fair, etc., have been achieved.

Infrastructure Development Under the Infrastructure Development Scheme, financial assistance is provided for

Adoption of Hi-Tech in Spice Processing; Technology & Process Upgradation;

Setting up/upgradation of In-house Quality Control Laboratory and Quality

Certification, Validation of check samples, training of Laboratory personnel. All

exporters having valid Certificate of Registration as Exporter of Spices from the

Spices Board and also having investment of a minimum of Rs.50 lakhs.

Trade Promotion The scheme components consist of Sending Business Samples Abroad; Printing

Promotional Literatures/Brochures and Packaing Development and Bar Coding

Registration. All registered exporters who are holding Spices Board Logo/Spice

House Certificate/Brand Registration with the Board/Organic Certification are eligible

for the assistance.

Product Development & Research Under this programme, financial assistance will be provided to exporters/research

institutions for developing new spice products/applications or for Establishing

traditional and non-traditional values; In-house research programmes; Clinical trials

to establish and validate therapeutic properties of spices through reputed third

parties and Patenting and product registration in consuming countries. All

registered exporters and recognized research institutions are eligible for the

assistance.

Spices Processing in NE Region:

133

The scheme proposes to provide financial assistance to the spice growers’ co-

operatives, Farmers’ Associations. NGOs representing spice growers and individual

entrepreneurs in North Eastern and hill states to establish primary processing

facilities for spices for organized marketing of the produce in domestic and

international markets with possible value addition.

Promotion of Indian Spice Brands The scheme components consist of Product and Packaging Development & Bar

Coding and Brand Promotion. In order to develop appropriate product, packaging

and compliance of statutory requirements, financial assistance will be given for

Packaging Development and Brand Promotion for Indian spices in the international

market. All registered exporters of spices who have registered their brands with the

Board, Spice House Certificates/Indian Spices Logo holders and holders of organic

certification are eligible for availing the benefits under the scheme.

Infrastructure for Common cleaning, grading, packing, sorting & processing facilities

Spice Parks at different spice producing states are being set up to provide common

infrastructure facilities at the growing centers, which would facilitate processing units

close to production centres, leading to better price realization by farmers.

Participation in International Fairs/Meetings/Seminars For introducing spices and spice products, establish business relationship with

buyers abroad and to showcase the recent developments of the spice industry, the

Board provides assistance to the exporters for participation in international trade

fairs and exhibitions abroad for market development. Besides, assistance will be

provided for participation in the international meetings/seminars in ASTA, ESA,

IOSTA, CODEX Committees & IPC.

Marketing Service

134

Marketing Services/activities include export development and promotion

programmes, issue of exporter registration, cardamom auctioneer/dealer licenses,

publicity and public relation programmes, provide IT support services, electronic

data processing services etc. As a measure to identify the right beneficiary in

matters of domestic marketing of cardamom, especially in E-auction of cardamom

and export development and promotion of spices, Spices Board has started issuing

ID Cards to the growers, dealers of cardamom and registered exporters of spices.

The introduction of ID cards has ensured transparency and authenticity of the

participants in the E-auctions.

3) Export Oriented Research

The 11th Plan outlay for the scheme is Rs. 20 crores. During the first four years

of the plan against the allocation of Rs. 16.00 crores, Rs. 20.95 crores has been

expended. Identified research activities on cardamom (small and large), post

harvest improvement of spices etc., are undertaken by the research institute of the

Board. The farmer’s oriented advisory services are provided. 2000 soil health cards

were issued to the farmers. 25000 kg bio-agents were produced and supplied.

Major initiatives

a. Evolving location specific varieties and Good Agricultural Practices (GAP)

b. Mechanisation of harvesting and Post Harvest Operations in cardamom.

c. Organic Farming

d. Impact of weather / climate variation on cardamom production

e. Soil Fertility Mapping and advisory services

f. Weather Forecasting

g. Transfer of Technology through latest media

h. Isolation and multiplication of native isolates of bioagents for the management of

Pests and diseases.

Achievements

135

a. Conserved 800 germplasm accessions and developed varieties suited to different

agro ecological conditions of the cardamom tract

b. Evolved GAP for cardamom incorporating strategies of INM, IPM & Post harvest

technology

c. Analysis of soil for nutrient status and fertilizer recommendation.

d. Identification of native strains of bioagents and their commercial multiplication for

farmer’s use.

e. Conduct of extension programmes such as spice – clinics, trainings, seminars, etc.

f. Established demonstration plots for validating technologies in the field.

g. Production and supply of planting materials of improved /released varieties of spice

crops to needy farmers

h. G.I. registration of cardamom and black pepper

4) Quality Improvement:

The scheme with an outlay of Rs. 20 crore is expected to provide analytical

services and compulsory inspection of chilly and its products so that spices exported

from India could gain better credibility and acceptance in the international markets.

During the first four years of the plan Rs. 15.81 crores have been expended against

the target of Rs.16.00 crores. An average of 40,000 samples of different spices and

spice items per annum are analyzed.

5) HRD and Capital Expenditure for Works

The scheme with an outlay of Rs. 5.00 crore aims at sharpening the knowledge

of Spices Board personnel, labour welfare measures etc. During the first four years

of the plan scheme Rs. 3.48 crores has been expended against the allocation of Rs.

4.00 crores. An average training for 10,000 persons per annum are provided to the

farmers in quality and post harvest improvement of spices.

6) Rejuvenation & Replantation of Cardamom

136

The scheme with an outlay of Rs.122.23 crores is aimed at improving the

productivity and production of small & large cardamom by rejuvenating & replanting

of old plants. The scheme is only approved in 2007, hence no additional allocation

were made to the overall budgetary sanction. The expenditure has been met out of

the overall budget of the Spices Board. During the first four years of the plan, Rs.

43.55 crores has been expended. Assistance in the scheme is provided for

replantation and rejuvenation of small cardamom and large cardamom. During the

last four years replantation of small cardamom has been done in 7265 ha. and

rejuvenations has been done in 4100 ha. Similarly for large cardamom, during the

last four years, replantation has been done in 3800 ha. and rejuvenation has been

made in 2860 ha..

7) Replantation and rejuvenation of pepper in Wynad district of Kerala and NE

The scheme of replantation and rejuvenation of pepper in Wynad district of

Kerala and NE region with a subsidy component of Rs.53.28 crores out of the total

outlay of Rs.100.81 crores has been approved in October 2009 for implementation

during the next five years. From the available fund an area of 5292 ha has been

replanted and an amount of Rs.4.77 crores has been given as subsidy.

VII. Tobacco Board

Tobacco Board was constituted as a statutory body on 1st January 1976 under

section 4 of the Tobacco Board Act 1975. The Board is headed by a Chairperson,

with 25 other members, having headquarters at Guntur, Andhra Pradesh, and is

responsible for the development of the tobacco industry. At present the activities of

the Board are restricted to production and marketing of Virginia tobacco only.

However, the Board is performing the function of export promotion in respect of all

varieties of tobacco.

137

Tobacco is an important commercial crop in India. The FCV tobacco is grown

principally in the states of A.P. 57%, Karnataka 42% and Maharastra & Orissa below

1%. The Board fixes the Flue Cured Tobacco crop size every year in Karnataka,

Andhra Pradesh, Maharastra and Orissa states to match the demand for the same

both for domestic and export front.

India is the 3rd largest producer and exporter of tobacco in the world earning an

amount of Rs.4,210.41 crores towards foreign exchange and Rs.15,530.28 crores

as excise revenue in 2010-11. Tobacco is produced in an area of about four lakhs

hectares with annual production of 757 M. kgs of FCV and different types of Non-

FCV types of tobaccos. FCV is the major exportable type cultivated with an annual

production of about 300 million kgs. Among the Non-FCV types, burley, Harvel De

Bouxo Rio Degrande (HDBRG) KFC and Natu are the exportable styles. Other Non-

FCV types grown in India are Bidi, chewing, Cheroot and Hookah.

Table 4.20

Targets and actual production of FCV Tobacco products

Crop season Target Fixed

(Quantity in M. Kgs.)

Quantity Marketed

(Quantity in M. Kgs.)

Marketed Value

(Rupees in crores)

2008-09 270.00 317.94 3359.35

2009-10 270.00 323.25 2944.48

2010-11 270.00 301.10 2567.10

2011-12* 262.00 60.06 884.93

*(As on 31.12.2010 for KK only and AP auctions will commence in the last

week of February 2012)

Source : Tobacco Board

138

Production

FCV tobacco is the major tobacco variety exported accounting for 65% of the total

exports by volume and major type utilized upto 90% of total usage by the domestic

cigarette industry. The FCV tobacco is grown principally in the states of Andhra

Pradesh (57%), Karnataka (42%), Maharashtra, Maharashtra and Orissa (below

1%). The crop size target fixed for Karnataka for the year 2010-11is 270 million kgs

and the quantity of tobacco marked during 2010-11 was 30.10 Million kgs valued at

Rs. 2567.10 crores as against the targeted quantity of 270 Million Kgs.

During the year 2010-11, a quantity of 2,52,298 M.T. of unmanufactured tobacco

and tobacco products valued at Rs. 4,210.41crore (923.94US $) was exported as

compared to 2,59,566 M.T. valued at Rs. 4,402.29 crores (928.37 US$) exported

during 2009-10.

Auctions

Auction system for sale of FCV tobacco was introduced during 1984 in Karnataka

and during 1985 in Andhra Pradesh. At present, the Tobacco Board is conducting

auctions at 11 auction platforms in Karnataka and 20 auction plat forms in Andhra

Pradesh.

The progress made in this regard is given below :

During 2010, the volume of 207.58 million kgs of tobacco marketed with an

average price of 80.06 per kg in Andhra Pradesh and the volume of 127.85

139

M. kgs of tobacco marketed with an average price of 92.03 per kg in

Karnataka.

During 2011, the volume of 173.25 million kgs of tobacco marketed with an

average price of 87.64 per kg in Andhra Pradesh and the volume of 60.06 M.

kgs of tobacco marketed with an average price of 98.26 per kg in Karnataka.

Exports

During 2010-11, a quantity of 252298 MT of unmanufactured tobacco and tobacco

products valued at Rs. 4210.41 crore was exported as compared to 259566 MT

valued at Rs. 4402.29 crore exported during the corresponding period of 2009-10.

During 2011-12 (April-November, 2011) a quantity of unmanufactured tobacco and

tobacco products valued at Rs. 2523.14 crore was exported as compared to 167690

valued at Rs. 2722.10 crores exported during 2010-11(April-November, 2010).

During 2011-12 (April-November, 2011), a quantity of unmanufactured tobacco and

tobacco products were in the order of 127742MT valued at Rs. 1863.55 crores and

exports of tobacco products are in order of 26429 MT valued at Rs. 659.59 crore.

The unmanufactured tobacco exports had declined at about 10% in quantity terms

and 12% in value terms, while the tobacco products increased by 7% in quantity

terms and 9% in value terms during the same period of last year. Overall exports of

tobacco and tobacco products declined by 8% in quantity terms and 9% in value

terms and 7% in rupee terms over the corresponding period of last year.

Export Promotion Activities

With a view to promote exports of tobacco and tobacco products, the Board

participated in the following fairs and exhibitions during 2011-12 :

Inter-Tabac, Dortmund, Germany during 23-25 September, 2011.

140

A trade Delegation to China during 25-30 September, 2011.

Participation in International Grower’s Association (ITGA) at Arusha,

Tanzania during 24-25 October, 2011.

World Tobacco Expo 2011-Munich, Germany during 8-10 November,

2011.

Inter-Tabac 2011 – Prague, Chezh Rupublic during 15-18 November,

2011.

The Board has issued advertisements in various internationally published tobacco

magazines for creating brand image for Indian Tobacco and tobacco products.

VIII. Marine Products Export Development Authority (MPEDA)

The Marine Products Export Development Authority (MPEDA), under the

Ministry of Commerce and Industry, is a statutory body entrusted with the

primary task of promotion of export of marine products from India.

DETAILS OF SCHEMES/PROGRAMMES FOR THE 11TH

FIVE YEAR PLAN -

PHYSICAL PERFORMANCE -TARGETS & ACHIEVEMENTS

Sl.

No. Name of the Scheme

2007-08 2008-09 2009-10 2010-11

Target

Achi

ev-

eme

nt

Target

Achiev-

ement

Target

Achiev-

ement

Target

Achiev-

ement

1 2 3 4 5 6

100.

1 Brand Building

100.

2 Publicity

Publicity/procurement

of public

literature/films/souvenie

r/sales team

delegation/buyer seller

meets/invitation of

overseas buyers/experts

to export promotion

visits to India/External

Internal Advertisement

124 118 109 120 114 136 12

0 132

100.

03 Trade Fairs 14 14 14 15 17 16 24 24

100.

04

Membership in

International

Organisations

1 1 1 1 1 1 1 1

100.

05

Information Technology

100.

06

Trade Promotion

Offices:

1. TPO New York

and Tokyo

2. TPO New Delhi

100.

07

Seafreight Assistance

New Schem

e

45 20

00 1876

100.

08

Market Assistance

Developmental

assistance for export of

ornamental aquarium

fishes

10

10

15

8

15

18

16

14

Insurance Scheme 1000

0

7183

2000

0

8089

1000

0

108

47

12

00

0

13621

Market Survey 2 0 2 0

200 CAPTURE

FISHERIES

200.

01

Promotion of fishing

tuna and other

Under exploited

resources

90 48 150 135 110 166 10

8 126

200.

02

Assistance for fishermen

for better preservation

of catch

200 258 200 322 26

0 220

200.

03

Engagement of

Technical Consultant

200.

04

Conservation of marine

resources -(Validation

of catch certificate)

11301

200.

05

Establishment

300 CULTURE

FISHERIES

300.

01 Development of

Hatcheries

1. Promotion of

commercial hatcheries

for

seed procuction

10 5 3 2 3 1 2 3

300.

02

Assistance to Farmers

1. Subsidy

assistance for

new farm

development

(ha)

830

ha.

355.7

2 ha.

156

ha.

168.

21

ha.

305

ha.

236.

84

ha.

26

0

hs

509.6

ha

Assistance for

Padasekharam 617.6

0 ha

250

ha 258.94

ha

500

ha

149.

50 ha

40

0

ha

33.23

ha

2. Assistance for taking

up organic farming in

selected suitable areas

125

ha.

8.40

ha.

260

ha 26 ha

15

0

ha

135

ha

4. Assistance for taking

up seabass farming &

mussel

5 3 9 9 9 9 16 17

5. Assistance to

Societies 10 5 63 75 300 73

15

0 81

6. Funding NaCSA

47

5 105

7. Field Extension

Training/Training for

SC/ST

Organized training

programmes

Farmers Meet

Seminar

Campaigns on

diversification, quality

issues

Study tours

SC/ST programmes

11

5

9

322

Trg

.

10

16

11

7

329

8

10

300.

03

Shrimp Health

Management

1. Development Asst.

for PCR Labs 10 8 4 6 5 9 4 10

2. Subsidy to set up ETS 10 nil 1 1 20 16 14 14

300.

04

GIS Mapping of

shrimp/scampi farm

7

stat

es

6

states

300.

05

Promotion of

ornamental fish

breeding for export

56 87 56 131 56 120 10

0 59

300.

06

Aquaculture

Establishment

Head Office

Regional Offices

400

PROCESSING

INFRASTRUCTURE

& VALUE

ADDITION

400.

01

Assistance for

Exporters for value

addition

30 35 60 63 25 10 8 7

400.

02

Cold chain for Seafood

Industry

1. Subsidised

distribution of

insulated fish

boxes

2. Assistance for

refrigerated

truck/container

3. Assistance to set

up large cold

storage

4. Assistance for

setting up of

modern ice plant

5. Infrastructure

facilities

(Genset, WPS,

ETP, Flake ice

machine, chill

room

upgradation of

deficient cold

storage

102

441

218

623

168

169

52

5

1486

3

5

5

400.

03

Assistance to

Exporters of Chilled

fish/Dried fish

2 1 3 0

400.

04

Special Economic

Zone

400.

05

Development Division

1.Head Office

2.Regional/Sub

Regional Offices

500

QUALITY

CONTROL

500.

01

MPEDA Lab at Kochi,

Bhimavaram, Nellore

& Bhubaneswar

1. MPEDA Labs

2. 2. Monitoring of

residue level of

pesticide &

antibiotic in

farmed shrimp to

meet EU

standards

(NRCP)

1953 2005 1838 200

5 1509 1375

24

44 2777

500.

02

Quality Upgradation

1. Assistance for

construction./renovation

of captice pre-

processing centres

9 20 9 14 15 15 8 6

2. Assistance for

construction/renovation

of independent pre-

processing centres

28 32 30 53 3 3 4 17

3. Assistance for setting

up of Mini Lab 8 13 10 16 13 13 6 6

4. Assistance for ELISA

Test Equipment 10 10 10 10 2

500.

03

Quality System

Management

1. Training of

Technologist

6 6 6 5 6 3

2. Inviting Health

Authorities of importing

countries/sending

delegated abroad

2 1 2 2

3. Upgradation of

fishing harbours 10 2 7 2 1

500.

04

Extension Education

Programme

(NETFISH)

2400 271

4 2400 3701

24

00 3005

500.

05

Assistance for

upgradation of seafood

plants to EU standards

13 16

13

12 15 15 8 15

500.

06

Quality Control/Lab

Division

600

RESEARCH AND

DEVELOPMENT

1. Assistance to RGCA

* Details

attached

.

]

IX. Agricultural and Processed Food Products Export Development

Authority (APEDA)

The Agricultural and Process Food Products Exports Development Authority

(APEDA) was set up in 1986 as a statutory body under an Act of Parliament of

1986. APEDA’s head office is located at New Delhi and there are two regional

offices located at Mumbai and Bangalore.

147

APEDA is mandated with the development and promotion of the export of scheduled

agro products including fruits, vegetable and their products; meat and meat

products; poultry and poultry products; dairy products; confectionery, biscuits and

bakery products; honey, jiggery and sugar products; cocoa and its products;

chocolates of all kinds; alcoholic and non-alcoholic beverages; cereal products;

groundnuts, peanuts and walnuts; pickles, papds and chutneys; guar gum;

floriculture and floriculture products; herbal and medicinal Plants. APEDA has also

been entrusted with monitoring of import of sugar.

APEDA has been actively engaged in the development of markets besides

upgradation of infrastructure and quality to promote the export of agro products. In

its endeavour to promote agro exports, APEDA provides financial assistance to the

registered exporters under the following schemes:

Scheme for Market Development

Scheme for Infrastructure Development

Scheme for Quality Development

Scheme for Research & Development

SCHEMEWISE TARGETS AND ACHIEVEMENTS

FINANCIAL AND PHYSICAL PERFORMANCE FOR THE YEAR

2010-11, 2011-12 (till Dec, 2011) &

TARGETS FOR THE YEAR 2012-13

148

Table 4.22

(Rs. in crores)

Name of the

scheme

Targets

2010-11

Achievement

s

2010-11

Targets

2011-12

Achievement

s

2011-12

(till 8th

Dec’2011)

Targets

2012-13

Fin Phy. Fin. Phy. Fin Phy. Fin Phy. Fin Phy.

Developmen

t of

Infrastructur

e facilities

60 121 61.60 172 50.00 117 7.31 20 100.0

0

230

Research

and

development

1.00 10 0.00 0 0.50 8 0.03 0 0.00 0

Quality

development

7.00 68 7.18 137 7.50 145 1.24 26 15.00 290

Market

development

17.00 269 17.32 280 23.00 151 7.41 72 25.00 160

Transport

assistance

65.00 250 63.93 230 99.00 230 65.59 140 250.0

0

240

Total 150.0

0

718 150.0

3

819 180.0

0

651 81.58 258 390.0

0

920

Scheme-wise objectives and achievements for the year 2010-11, 2011-12 &

performance targets for the year 2012-13 are as follows :-

1. INFRASTRUCTURE DEVELOPMENT

Development of a strong infrastructure is critical for the growth of agro industries

sector and export of agricultural products. The emphasis is primarily on setting up of

post harvest handling facilities so as to reduce losses caused due to spoilage and to

ensure quality production of agro products. This scheme seeks to provide financial

assistance to the exporters and export related government/ cooperative institutions

149

for setting up of infrastructure such as cargo centers at International airports &

seaports and pack house facilities with packing/grading lines, pre-cooling units, cold

storages and refrigerated transportation etc. The high cost of investment to maintain

cold chain and its economic unviability has always restrained exporters to invest in

post harvest handling Infrastructural facilities.

Therefore it has become imperative for APEDA to set up common facilities to

maintain cold chain and to improve the quality of the produce such as integrated

packhouses, (pre-cooling, cold storages and mechanized handling facilities),

perishable cargo handling centers at exit points like airports, seaports etc.,

This has helped in improving the quality of the perishables by maintaining complete

cold chain and enhanced credibility of agro exports from India.

The CPC projects at Nashik and Goa has been completed. APEDA, is also setting

up of walk in cold room at Srinagar Airport. The equipment has reached the site but

AAI has advised that they will provide alternate location on airside. Till such time the

installation has to await.

a. The Common Pack house facility for ginger in Assam has been completed.

b. Apart from this, pack house/ facilities i.e. pre-cooling, cold storage facilities

with mechanized handling systems are also being set up by individual

exporters for export of fresh fruits & vegetables.

c. Common laboratory facilities for export testing of pesticide residues, heavy

metals, aflatoxins, drugs and toxins etc. have been upgraded and set up with

APEDA’s financial assistance at NRC Grapes-Pune, CFTRI-Mysore,

AGMARK laboratory at Mumbai, Maharashtra Govt laboratory at Pune, IIIM,

Jammu.

d. Laboratory facilities are being set up at Herbal Research & Development

Institute, Gopeshwar (Uttarakhand) and will be completed in 2012-13. Apart

from this, private laboratories are being upgraded with APEDA’s financial

assistance for export testing of agro products.

Outcome of the Scheme

150

The setting up and up gradation of Infrastructural facilities has helped in integration

of supply chain (cool chain) and improvement of quality of fresh horticulture

perishables like fruits, vegetables, flowers, and processed food products etc., which

has led to enhancement in the export of APEDA monitored products. The quality of

the produce has been widely accepted in the European and other markets in

developed countries. The export of fresh grapes, honey, egg products and ground

nuts to European market has been possible due to the up gradation of Infrastructure

facilities like laboratories and pack house facilities in the major growing areas. The

year-on-year growth in APEDA products exports is also a result of continuous efforts

to up gradate infrastructure facilities by APEDA.

2. MARKET DEVELOPMENT

Good packaging is extremely important both in terms of quality of the product as

well as its image. It is, thus, necessary to encourage exporters to make use of

good quality packaging material. Similarly, compilation and consolidation of data is

very important for exporters to enable them to formulate export marketing strategies.

The marketing strategies are implemented through Market Development which

involves participation in International trade fairs, exchange of trade delegations and

conducting buyer seller meets etc. The scheme has helped in achieving the market

access in new markets and also to sustain the present level of exports in the

existing markets.

APEDA has initiated the following steps for market promotion of agro products:

1. As result of APEDA’s effort the Australian market for Indian mangoes has

been opened in 2011-12.

2. Efforts are being made constantly for opening up of Australian market for

Indian grapes, US market for grapes and Litchi, Chinese market for fruit &

vegetables.

3. APEDA has organized mango promotion programme in UAE, during the last

last mango season.

151

4. Efforts are also being made to lift the ban on poultry products in Oman,

Kuwait, UAE, and Saudi Arabia.

5. Efforts are also being made to open up in markets like Russia for Bovine

meat and an FSVPS team was invited to visit India for the purpose.

Outcome of the Scheme

The scheme has helped in achieving market access for export of Indian mangoes

into Japan, Grapes, Mangoes, Basmati rice and Bitter gourd into China.

The market facilitation centre set up in the Netherlands has helped in marketing of

fresh cut flowers directly to super markets ensuring better export realization. This

has substantially reduced the rejection of the consignments of fresh cut flowers

since the centre has worked as a strong link between exporters and the importers

and has organized regular interactions on quality issues between the exporters and

importers.

As a result for opening market like Russia for Bovine meat a 3-member team visited

in November’2011. The report is awaited.

The participation in the International Trade Fairs has substantially helped in

incremental exports and also in developing new markets. The packaging of the agro

products has been substantially upgraded and improved under the scheme.

3. QUALITY DEVELOPMENT

The concept of food safety and quality is a growing global concern. Keeping in view

the growing global concerns for quality and phytosanitary requirements; it has

become essential to continue with the ongoing quality development scheme. There

is a need to promote exports in consumer packs and value added products. To

152

promote the export of organic products, we need to develop organic farming. In

view of the changes taking place in international trade, different systems are being

developed to improve quality of food products. The exporters have to comply with

the specific quarantine and technical requirements of the importing countries.

Hence, it is essential that financial assistance is given for the implementation of food

safety management systems like TQM, HACCP, BRC, EUREPGAP and ISO-

9001:2000 etc. to enhance the export capability and credibility of Indian agro

products.

The scheme has helped the exporters in certification of their manufacturing units for

HACCP, EUREP-GAP and ISO 9001:2000 systems etc. which has further enhanced

the acceptability of the Indian agro products in international markets.

In order to maintain our exports to European Union, we need to continue the

implementation of residue monitoring plan for honey, poultry products and grapes as

per their requirement.

To enhance the acceptability of Indian agro products in the international markets, we

have to promote implementation of HACCP, EUREP-GAP, TQM, ISO 9001:200 in

processed food sector and fresh produce.

In-house laboratories of the exporters are also required to be upgraded for on-going

testing of products for exports.

Organic farming:

a. As part of implementation of National Program organic Promotion (NPOP) 22

Certification bodies have been set up for certification of organic farming in the

153

country, three new certifications bodies are expected to be accredited during 2012-

13

b. APEDA has successfully achieved Equivalence agreement with European Union

and Switzerland.

c. APEDA has also completed the processes of conformity assessment by USDA for

organic products.

Outcome of the scheme

The scheme has helped in improvement of the quality of agro products and we have

been able to meet out the food safety and hygiene requirements of the importing

countries. The export of honey, ground nuts, fresh grapes, poultry products etc. has

been possible to Europe only due to the implementation of residue monitoring plans

by APEDA as per the European Union requirements.

The export of processed food products, Basmati rice, fresh fruits and vegetables

and other products has steadily grown due to implementation of TQM, HACCP, ISO

– 9001 : 2000, BRC and Eurep-gap etc. coupled with up gradation of in-house

laboratories.

5. TRANSPORT ASSISTANCE

Indian exporters of fresh perishables, processed food products, poultry products,

dairy products etc. have been facing the disadvantage of high freight rates from

India in comparison to the competing countries and our agro products have become

in-competitive. The export of horticultural perishables has been carried out by air

transport and airfreight rates are comparatively very high. In order to mitigate the

dis-advantage of high air freight and sea freight rates, it has become imperative

154

upon Govt. of India to provide transport assistance on selected fruits, vegetables,

flowers, poultry, dairy and other processed food products etc. for exports both by

sea and air to enable the agro products to compete in the international markets.

The scheme has helped in continues incremental exports in this secrots.

Outcome of the scheme

The scheme has helped in incremental exports as export of fresh fruits and

vegetables, floriculture, dairy & poultry products and processed food products have

registered a constant growth during the Xth Five year plan. Transport Assistance

Schemes was approved for continuation in XIth Plan. Major benefit of the Schemes

as listed below has been achieved.

1. Exporters of identified products continue to face a transaction cost and

freight cost disadvantage vis-à-vis their international competitors. Hence

the TAS has helped to mitigate this disadvantage enhancing the overall

competitiveness of Indian agricultural product exporters.

2. TAS has helped in promoting exports of identified products where India

has strong export potential but so far has been unable to make a dent in

international markets due to the transaction/ freight cost disadvantage.

3. TAS has helped in promoting exports of value added processed products

rather than unprocessed low value products.

4. TAS has helped in the employment generation potential for these

commodities due to an increase in exports.

5. The Scheme is a medium term support to enable these eligible items to

gain a foothold in global markets.

155

X.Market Access Initiative (MAI) Scheme

The MAI scheme was launched in 2003 to act as a catalyst to promote India’s export

on sustained basis. The scheme is formulated on focus product – focus country

approach to evolve specific strategy for specific market and specific product. The

scheme was launched with a total outlay of Rs.552 crores during the Xth Plan.

However in view of the apparent short fall in achieving of financial target in the initial

years of the Xth Plan, the department held extensive consultations with the

stakeholders to evaluate the scheme in 2006. Based on the above, the revised

scheme was approved in December, 2006. Thereafter the present revised MAI

scheme was notified in January 2007.

The scheme was restructured to include enhancement of scope of the scheme,

increase in number of eligible agencies and increase in scale of assistance. After

the scheme was revised there is no short fall in respect of achievement of physical

and financial targets. The scheme is being continued in the XIth Plan with approved

allocation of Rs.550 crores and no shortfalls in the physical targets/actual

achievements.

Under the scheme, assistance is extended to the Departments of Central

Government and organisations of Central/State Government, Export Promotion

Councils, Registered Trade Promotion organisations, Commodity Boards,

Recognised Apex Trade Bodies, etc. The activities eligible for financial assistance

under the Scheme are Marketing Projects Abroad, Capacity Building, Support for

Statutory Compliances, Studies, Project Development etc.

During the year 2011-12 (upto 31.12.2011), 190 projects/export promotion events

and studies/export promotion surveys were approved for assistance of under the

MAI scheme, by different Export Promotion Organisations/Trade Promotion

Organisations/National Level Institution etc. details of outlays allocated and actual

expenditure incurred under the scheme during the period 2003-04 to 2010-11 are as

156

under:

Outlay and Expenditure

( Rs crore) Year Outlay Actual

Expenditure

2003-04 44.00 9.00

2004-05 102.44 4.48

2005-06 40.00 19.91

2006-07 40.00 39.99

2007-08 45.00 44.99

2008-09 50.00 49.99

2009-10 64.00 64.00

2010-11 110.00 110.00

2011-12 149.99 116.32

(upto

31.12.2011)

XI.Marketing Development Assistance (MDA) Scheme

To facilitate various measures being undertaken to stimulate and diversify the

country’s export trade, Marketing Development Assistance (MDA) Scheme is under

operation in the Department of Commerce. This non-plan scheme supports the

following activities:

Individual exporters for approved EPC/Trade bodies led export promotion

activities abroad.

Export Promotion Councils (EPCs) to undertake export promotion activities for

their products and commodities

Approved organisations/trade bodies in undertaking limited exclusive non-

recurring innovative activities connected with export promotion efforts for their

members.

157

Focus Area export promotion programmes in specific regions abroad like Focus

LAC Focus Africa, Focus CIS and ASEAN+2 programmes.

Residual essential activities connected with marketing promotion efforts abroad.

During the year 2011-12 (upto 31.12.2011), 322 projects/export promotion events

were approved for assistance with funds, sanctioned under the MDA scheme, by the

Export Promotion Councils and other approved organisations/trade bodies. During

this year Export Promotion Council status was granted to Telecom Equipment and

Services EPC.

Details of outlays approved and actual expenditure under the MDA scheme during

the period 2003-04 to 2010-11 are as under.

Outlay and Expenditure

( Rs. Crore) Year Outlay Actual Expenditure

2003-04 52.00 52.00

2004-05 55.00 55.00

2005-06 55.00 38.47

2006-07 52.25 52.25

2007-08 52.25 52.25

2008-09 52.25 52.25

2009-10 53.00 53.00

2010-11 56.00 56.00

2011-12 49.99 24.99 (upto

31.12.2011)

XI.National Export Insurance Account (NEIA)

A separate Fund with an approved corpus of Rs.2,000 crore called the National

Export Insurance Account (NEIA) was set up in 2006, out of which Rs.886 crores

158

have been funded by the Government so far. During the year 2010-11, Rs.150

crores allocated for NEIA has been released.

The objectives of NEIA is to promote project export from India, which may not take

place but for the support of a credit risk insurance cover which the ECGC is not in a

position to provide because of its own underwriting capacity. The NEIA is

maintained and operated by a Public Trust set up jointly by the Department of

Commerce and ECGC.

The objectives of NEIA were expanded by the Government in December, 2008, in

view of the Global Financial Crisis, to also provide for short term cover and use of

NEIA funds upto Rs.360 crores for the financial years 2009-10 and 2010-11, to

mitigate the effects of global financial crisis.

During the year NEIA guidelines were revised to provide risk cover for buyer credits

which may be extended by EXIM Bank to overseas agencies. Under the revised

guidelines projects which are backed by sovereign guarantees will be covered upto

100% of value, without recourse, to deserving exporters. Provisions have also been

made to cover the risks arising due to exchange and interest fluctuations.

XIII. Price Stabilization Fund Scheme (PSF)

The Price Stabilisation Fund Scheme was started from April 2003 with the objective

of providing relief to small growers when the prices of coffee, tea, rubber and

tobacco fall below a specified level, without resorting to the practice of procurement

operations by Government agencies.

As on 30 September 2011, 46243 growers have been enrolled under the PSF

Scheme, out of which 18919 are rubber growers, 11594 coffee growers and

15730 tea growers. Tobacco growers have expressed their unwillingness to

join the scheme.

159

Based on Price Spectrum Band 2010, Tea, Coffee (Arabica and Robusta)

and Rubber have been classified under Boom Year due to good prices.

Cumulative committed financial assistance under PSF scheme stood at Rs

5.43 crore, out of which only Rs.1.50 crore have been released till date due to

default on the part of the growers.

As decided in the 28th BOT meeting held on 20 October 2010 a final cut off

date of 15/12/2010 for release of assistance under PSB 2003 to 2007 (2008

was boom year for all the three commodities) was fixed. Hence, there is no

assistance pending for release to Tea and Coffee Growers. Rubber Board

has also been advised to send the claim for balance eligible growers under

PSB 2009.

Summary of PSF Scheme Pay Out

Since the launch of the Scheme in April 2003, the PSF Trust has announced Price

Spectrum Bands for 2003, 2004, 2005, 2006, 2007, 2008, 2009 and 2010 and the

cumulative committed financial assistance stood at Rs.5.43 crore, as per details

here under:

(Rs.in crore)

Commodity PSB

2003

PSB

2004

PSB

2005

PSB

2006

PSB

2007

PSB

2008*

PSB

2009

PSB

2010*

Total

RUBBER

0 0 0 0 0 0 0.95 0 0.95

COFFEE 0.82 0.58 0 0 0 0 0 0 1.40

TEA 0.09 0.73 0.74 0.75 0.77 0 0 0 3.08

TOTAL 0.91 1.31 0.74 0.75 0.77 0 0.95 0 5.43

* boom year for all crops

However, due to default by growers in depositing their contribution during normal

years, assistance of Rs.1.50 crore only has been released as at the end of

September 2011.

160

II. Personal Accident Insurance Scheme (PAIS)

A Personal Accident Insurance Scheme is under implementation by PSFT through

Cholamandalam MS General Insurance Company Ltd for the years 2011-12 and

2012-13. Salient features of the scheme are as under:

The scheme covers the growers in the sectors of Tea, Coffee, Rubber

and Tobacco and Spices (chilli, cardamom, ginger, turmeric and

pepper) having plantations up to 4 hectares only.

The Scheme covers all plantation workers working on these

plantations regardless of the size of holdings.

The insurance cover is up to Rs. 1.00 lakh per person.

The premium of Rs.22.06/- is shared between the beneficiary and the

PSF Trust in the ratio 50:50.

The target is to cover 57.17 lakh growers and workers.

Progress under PAIS as on 30th September 2011.

Progress in respect of fresh coverage

Year 2011-12 (01 April 2011 to 30 September 2011)

A total amount of Rs.363406/- has been released towards PSFT’s

matching contribution to provide insurance cover to 32947 persons to

Chola MS General Insurance Co Ltd. PSFT is vigorously pursuing with

Chola MS GIC for boosting the efforts for maximum coverage under the

Scheme.

Progress in respect of renewal

161

Year 2011-12 (till 30.10.11) :

Renewal of policy in respect of 29281 growers and workers out of which

3777 growers and 285 workers are from Coffee Sector and 11537

growers and 13682 workers are from Tobacco Sector.

Progress in respect of settlement of claim

2010-11

Received : 1

Settled : Nil

2011-12

Received : 4

Settled : 01

III. Proposed Crop Insurance Scheme for the Plantation Sector With a view to improve the effectiveness of the scheme and to achieve better results

towards providing meaningful financial assistance to the growers, the Department of

Commerce constituted a Task Force for the Plantation Sector. The

recommendations of the Task Force were deliberated by the GoM and it was

decided that the Crop Insurance Scheme for Tea, Tobacco, Rubber and Spices

(chillies, cardamom, ginger, turmeric and pepper) may be taken up for immediate

implementation.

The Salient features of the Crop Insurance Scheme are as under:

Crop Insurance Scheme is to be implemented for the growers of Tea,

Rubber, Tobacco and Spices (Chilli, Ginger, Turmeric, Pepper and

Cardamom).

162

The Scheme will cover growers having landholding up to 10 ha. For Tea and

Cardamom, the scheme will be extended to growers having landholding

between 10-50 ha.

The government will provide subsidy of 50% on the annual premium in case

of growers having landholding up to 10 ha. In case of growers of Tea and

Cardamom having landholdings between 10-50 ha, the subsidy provided by

the Government would be restricted to 25%.

The project cost (Govt’s share) is estimated at Rs.728.86 crore over a period

of 5 years.

The issue of premium subsidy liability sharing between the Centre and the States

is under consideration. After the Government gives its approval, the Crop

Insurance would be taken up for implementation.

163

Financial and Physical Review – 2011-12

(For the period April – September 2011)

*Price Stabilisation Fund Scheme ( PSF Scheme) - Objective

To provide financial relief to the growers from Tea , Coffee , Rubber and Tobacco

when the prices of these commodities fall below a specified level, without resorting

to the practice of procurement operations by the Government agencies.

^ Personal Accident Insurance Scheme ( PAIS)

164

S. No.

Name of Scheme

Financial Performance 2010-11

(Rs. in Crore)

Physical Performance/ Quantifiable deliveries (Nos.)

Remarks

Outlay 2010-11 Releases (Apr – Sep) 2011-12

Expenditure (Apr – Sep) 2011-12

Target 2011-12

Cumulative Achievement (Apr – Sep) 2011-12

PLAN SCHEME

- - - - - - - - -

NON PLAN SCHEME

1

2

Price Stabilisation Fund Scheme Modified PAIS

Non Plan

Budget Provision - 4.50 Tea-1.00 Coffee-1.00 Rubber-1.00 Tobacco-0.25 Spices – 1.25

Nil

0.476 PSF Scheme* NIL PAIS^ Premium 0.036 Admn. Exp-0.44

PSF Scheme payout – 13537 (growers)@ Modified PAIS – 57.17 lakh (growers/workers)

PSF Scheme payout releases – Nil Modified PAIS – 32947 (growers/workers)

- Objective

Insurance cover for death / disablement due to accidents caused by external violent

and visible means. The scheme will cover the growers in the sectors of Tea, Coffee,

Rubber, Tobacco and Spices (Chillies, Pepper, Cardamom, Turmeric and Ginger)

sectors having plantations up to 4 hectares only. The Scheme will also cover all

plantation workers in these sectors regardless of the size of holdings they are

engaged.

@ Regarding claims pertaining to PSB 2003 to 2007 (2008 being boom year for all

commodities), a final cut-off date of 15.12.10 was conveyed to the Boards. Now

balance pending for release is under PSB 2009 (2010 boom year for all

commodities) in respect of 13537 Rubber growers for whom no claim has been so

far received from Rubber. The Board has been requested to expedite the claim in

respect of eligible growers.

XV. Footwear Design & Development Institute (FDDI)

The Footwear Design & Development Institute, established in 1986 under the aegis

of Ministry of Commerce, Government of India, with an objective to provide one stop

solution to the footwear and leather product industry, is the premier institute of the

country. Since more than two decades FDDI is involved in Human Resource

Development and providing other technical services such as testing, inspection,

designing, consultancy etc. to the leather and leather product industry.

FDDI has been sanctioned the following projects as mentioned below by

Department of Commerce, Ministry of Commerce & Industry, Government of India

under 11th Five Year Plan:

165

Establishment and Up gradation of Workshops, Labs & Classrooms at FDDI,

Noida.

Up gradation and expansion of FDDI, Fursatganj, Rae Bareli, UP.

Establishment of OTSC and Construction of Hostel at FDDI, Noida.

Establishment of International Design Studio at FDDI campus in Fursatganj

(Under ASIDE Scheme).

Establishment of FDDI at Jodhpur.

The brief details of the above mentioned projects are summarized below:

Establishment and Upgradation of Workshops, Labs & Classrooms at FDDI,

Noida

In the last five years, FDDI has increased its student strength from merely 184 in

2005 to 1990 in 2010. The project for up gradation of FDDI, Noida was sanctioned

to augment the existing training infrastructure and latest technology at FDDI to

accommodate the increased strength of students with a total outlay of Rs. 15.00

crore.

New classrooms, workshops and labs (sole design, productivity, Product

development Lab) have been established to ensure qualitative training and better

services to the industry in the area of Design technology and management. The

entire project has been completed. The balance amount of Rs. 100.00 lakhs

released in May, 2011 has fully utilized. The UC for the same will be submitted

shortly.

Upgradation and expansion of FDDI, Fursatganj, Rae Bareli, Uttar Pradesh

In order to support the Industry with qualitative & trained manpower, the Project for

up gradation and expansion of FDDI, Fursatganj, Rae Bareli has been sanctioned

with the grant of Rs. 83.61 crores from Department of Commerce and Rs. 13.53

Crores from DIPP totaling to a total outlay of Rs. 96.69 Crores.

166

The state-of-art campus with the capacity to train 1000 students has been made

operational within a record time of 12 months (from academic session 2008-09) with

the enrollment of 224 students in the batch and has inducted more than 900

students as on date in various programmes.

State-of Art Infrastructure and facilities are established at FDDI, Rae Bareli campus

with the capacity to accommodate 1000 students in various disciplines of Footwear

& Leather Products Design, Manufacturing Technology and Management. Individual

Centers of Excellence (Centre for Footwear Technology & Management, Centre for

Leather Goods & Accessories Design and Centre for Retail Management and

Merchandising) are I operation & are equipped with most modern machines,

equipment’s tools and gadgets to ensure international standards of delivery in each

gamut of activities carried out at Rae Bareli Campus.

The campus was inaugurated by Sri Rahul Gandhi, Hon’ble MP on 15th November,

2010 in the august present of Sri Anand Sharma, Hon’ble Commerce & Industry

Minister, and Government of India.

Establishment of ITSC and Construction of Hostel at FDDI, Noida

FDDI, Noida has been sanctioned the project of Establishment of Information

Technology Services Center (ITSC) and In campus Hostel at FDDI, Noida with a

total outlay budget of Rs. 20.64 crores( Rs. 10.70 crores for ITSC and Rs. 9.94

crores for construction of Hostel). High end computer centre has been established.

The complete campus has been made Wi-Fi enabled. The construction of hostel

was completed and utilized for lodging of students.

Establishment of International Design Studio at FDDI Campus in Fursatganj

(under ASIDE Scheme)

167

For the establishment of the International Design Studio, FDDI has been sanctioned

a total of Rs. 12.15 Crores out of which Rs. 5.00 Crores has been received as first

installment, Rs. 1.5 crores as second installment and Rs. 5.65 Crores as 3rd

installment. FDDI has already completed the establishment of Design & display

center. Furniture & Fixtures and Installation of Machines are also completed.

Tendering for procurement of information and resource centre, Material and other

critical inputs and Sampling and display of material and product Development are

near completion.

Establishment of FDDI, Jodhpur

In order to ensure the high end institutional infrastructure in all the major clusters,

Govt. of India has approved the establishment of a full-fledged campus in Jodhpur

(Rajasthan) under 11th Five Year Plan. The total project outlay for the same is Rs.

97.12 Crore.

The modern infrastructure and facilities with the training capacities of 1000 students

will be establishment in the Jodhpur campus. In the new campuses as approved by

Ministry of Commerce & Industry, state of art infrastructure and facilities such as

Smart class rooms, Workshops with latest machines and equipment, High tech IT

Lab, Library etc. will be established to accommodate training and services in various

disciplines in line with existing campuses of FDDI. The support infrastructure and

services in various disciplines in line with existing campuses of FDDI. The support

infrastructure such as Auditorium with modern gadgets, Sports Complex, residential

facilities for staffs along with separate Boys and Girls Hostel will also be established

simultaneously to encourage high end training and research facilities in the campus.

Engagement of architect for the construction of FDDI, Jodhpur building is done. A

construction activity is in full swing, procurement of machineries and equipment is

under process.

168

XVI. Modernization and Upgradation of DGFT

During 2009-10 and 2010-11 a sum of Rs 4.00 crore and Rs. 5.00 crore were

allocated for up-gradation of Hardware /Software/Network and operations at DGFT.

The budgeted amounts were fully utilized. During 2011-12, Rs 10.00 crore has been

allocated out of which Rs. 2.08crores (approx.) has been utilized for procurement of

hardware/software and broadband connectivity till September, 2011 and the balance

amount is likely to be utilized by March 2012 under DGFT’s EDI initiatives.

169

Table 4.12

Sl No

Name of the XI Plan

Schemes

XI Plan outlay

XI Plan Physical Major Targets

Achievements 2007-11

(Four Years)

Targets 2011-12

Achievements-2011-12 (Upto 30th November,

2011)

Fin Phy Fin Phy Fin Phy

1 PDS 55

New Planting 7450 ha Irrigation &Drainage-7900 ha SHGs of small growers-212 nos

25.29

3084.72 ha 9521.89 ha 227 Nos

13.00 500 ha 1500 ha 45 nos

7.00

250 ha 1450 ha 10 nos

1.1

SPTF (Subsidy)

200 Replanting 32560 ha Rejuvenation 8432 ha

91.68 18691.11 ha 6621.00 ha

60.00 6000 ha 1000 ha

22.00 2922 ha 444 ha

1.2

SPTF (Capital)

61 60.00 1.00 0.00

2.1

QUPDS i.

130

Factory Modernization 349 units Value Addition-147 units Quality certification- 100 units

85.28 854 units 80 units 155 units

42.00 100 units 25 units 25 units

26.90

239 units 15 units 22 units

2.2

Orthodox Production

100 380 m kgs 57.37 306 m.kg

33.00 80 m.kg

27.00 75 m.kg

3 MPS 119 Fairs & Exhibitions- 100 Nos.

Transport subsidy ICD Amingaon128 m.kg

89.47 113 Fairs

100.26 m.kg

15.00 20 Fairs 24 m.kg

11.50 2 (I)+ 8(D) Fairs

---m.kg

4. ii. HRD 50.0 (i)Health care Drinking water- 5000

units Sanitation-10,000 units

Capital grant to

15.26

5.00 -

1000

2.80

-

0

Hospitals / clinics -45 ii.Education:

Educational stipend / uniforms /book grants

etc-50000 students Capital grant to schools

& hostels-45 units Assistance for

organizing Bharat Scouts and Guides &sports activities in

plantation Districts-5500 students

iii.Training Training of small

growers+workers- 10,000 workers

Training of garden managers-2500 persons

Training of Extension service providers to SHGs-424 trainers

Planters Productivity councils-

15 Nos

29

39547

16

5336

45191

1350

234

23

units

10 units

5000

10units

1000

2000 worker

s

200 person

s

170 trainer

1 units

500 students

1 units

700 students

700 persons

300 persons

--- persons

10 no. 39(823)

s

15 Nos

5 iii. R & D 85 104.74 12.00 5.25

iv. Total 800 529.09 180.00 102.45

Table 4.13

COFFEE BOARD - REVIEW OF SCHEME-WISE PERFORMANCE DURING , 2008-09, 2009-10, 2010-11 & 2011-12 (April – Sept. 2011) Sl.

No

Name of

Scheme/

programme

Objective/ Outcome

Physical

Performance

during 2008-09

Physical

Performance

during 2009-10

Physical

Performance

during 2010-11

Physical Target

during 2011-12

Physical

Performance

upto Apr.-

Sept.2011

Reason for

variation

7 8 3 4 5 6 7 8 9

1 R & D for

Sustainable

coffee

production

To increase coffee production,

productivity and quality through

sustainable research & develop-

mental approach.

Production

estimates –

2,62,300 MT

Produ

ctivit

y –

748

kg/ha.

Production

estimates –

2,89,600 MT

Produ

ctivit

y –

815

kg/ha.

Production

estimates –

3,02,000 MT

Pro

duc

tivi

ty –

838

kg./

ha.

Production

estimates –

3,22,250 MT

Pro

duc

tivi

ty –

886

kg./

ha.

--

--

On account

of weather

conditions,

rainfall and

pest &

diseases

during

monsoon.

Harvesting

commences

from 3rd

qtr.

2

Development

Support

To provide development support to

enhance farm productivity through

replanting, water augmentation,

pollution abatement, coffee

development in NE Region and NTA

(Andhra Pradesh & Orissa), capacity

building among various stake holders

in the Indian coffee sector, welfare

support to coffee sector workers and

tiny coffee growers.

3 Market

Develop-

ment

To enhance domestic coffee

consumption and carry out market

research and intelligence and

dissemination of information to

stake holders

Domestic

Consumption :

94,400 MT

Domestic

Consumption :

1,02,000 MT

Domestic

Consumption :

1,08,000 MT

Domestic

Consumption :

1,15,000 MT

--

Yet to be

assessed.

Sl. No

Name of Scheme/ programme

Objective/ Outcome

Physical

Performance during 2008-

09

Physical

Performance during 2009-10

Physical Performance during 2010-

11

Physical Target during

2011-12

Physical Performance

upto Apr.-Sept.2011

Reason

for variation

1 2 3 4 5 6 7 8 9

4 Risk Management to coffee growers

To provide effective risk management aid to those coffee growers likely to be impacted by adverse rainfall.

Monsoon risk for about 10460 small growers of less than 10 ha. category have been covered benefiting around 20,600 ha.

Monsoon risk for about 4100 small growers of less than 10 ha. category have been covered benefiting around 8,200 ha.

Monsoon risk for about 19400 small growers of less than 10 ha. category have been covered benefiting around 24400 ha.

Small Growers : 25000 nos.

Monsoon & post-monsoon risk of 2011-12 crop covered and about 3284 small growers have been covered benefiting around 6900 ha.

Likely to improve during the remaining period.

5 Export Promotion of coffee

To enhance market share of value added and high value coffees in key overseas markets to augment export earnings and to enhance market share of Indian coffees in far off key international markets.

Export of coffee : Qty : 1,97,171 MT

Export of coffee : Qty in MT: 1,95,716

Export of coffee : Qty in MT: 3,20,981

Export of coffee : Qty in MT: 2,20,000

Export of coffee : Qty in MT : 2,10,562 (P) (as on 31.10.2011)

Likely to achieve the target.

6 Support for coffee processing

To achieve value addition in coffee by supporting the processing activities and to support small and medium entrepreneurs for setting up quality coffee processing units.

Setting up - 13 nos. of Coffee processing units

Setting up -16 nos. of Coffee processing units

Setting up -26 nos of Coffee processing units

Setting up- 50 nos of Coffee processing units

Setting up -5 nos of Coffee processing units

Achievement is likely to improve.

7 Support for Mechanisa-tion (New proposal)

To provide support to coffee growers to encourage the use of farm machineries to improve productivity and efficiency in carrying out crucial farm operations for coffee in time particularly in the context of farm labour.

- - Machineries – 1564 units.

Machineries – 20000 units.

Machineries – 4220 units.

Achievement is likely to improve.

175

CHAPTER V

FINANCIAL REVIEW

The total expenditure (Plan and Non-Plan) of the Department during the financial

year 2009-10 was Rs.3791.65 crore. As against this, the total expenditure for the

year 2010-11 was Rs. 5296.27 crore compared to the Budget Estimate of Rs.3980.05

crore and Revised Estimate of Rs.6674.12 crore.

The Budget Estimate for the year 2011-2012 was Rs.6511.58 crore which was

revised to Rs. 4466.00 crore. As against this, the total expenditure up to December,

2011 was Rs. 3471.66 crore.

Revenue Section

Plan: During 2010-11, the Plan expenditure was Rs. 986.22 crore as against

Rs.885.54 crore during 2009-2010. The provision for the year 2011-12 was Rs.

1069.02 crore and Revised Estimate was Rs. 1125.54 crore.

Non-Plan: During 2010-11, the Non-Plan expenditure was Rs.3601.26 crore as

against Rs.2295.61 crore during 2009-2010. The provision for the year 2010-11 was

Rs.4511.58 crore and the Revised Estimate was Rs.2600.00 crore.

Capital Section

Plan: During the year 2010-2011, the Plan expenditure was Rs.686.69 crore as

against Rs.610.50 crore during the year 2009-10. The provision

176

for the year 2011-2012 was Rs.930.98 crore for Budget Estimates and Rs. 740.46

crore for Revised Estimates.

Detailed account of outlay and expenditure for both Plan as well as Non-Plan

schemes of the Department during the years 2008-09, 2009-10 and 2010-1, 2012

and 2012-13 is given in Table 5.1.

Eleventh Five Year Plan (2007-2012)

An outlay of Rs.9916.00 crore (at current prices) has been approved for the various

Plan schemes of the department for the Eleventh Five Year Plan. The Scheme-wise

allocation for Eleventh Plan and outlay & expenditure for the Annual Plans i.e. 2007-

08, 2008-09, 2009-10, 2010-11and 2011-12 are given in Table 5.2.

Utilization Certificate (UCs)

There were 180 UCs outstanding as on 1.4.2011 involving Rs.610 crore. 10 UCs

have been received upto 31.1.2012 amounting to Rs.123.33 crore and 170 UCs are

outstanding as on 31.1.2012 involving Rs.486.67 crore.

Opening Balances

The detailed statement for Outstanding Unspent Balance with the States and

implementing agencies as on 31.1.2012 is shown in Table 5.3.

177

Table 5.1

Plan

Schemes

2007-08 2008-09 2009-10 2010-11 2011-12

2012-13

BE RE Actual BE RE Actual BE RE Actual BE RE Actual

BE

RE

Actual 31.12.2011

A Industry & Mineral Sector

1 Assistance for Developing Infrastructure & Other Allied Activities

For other than NER under head Major Works

540.00 509.22 508.96 513.00 513.00 512.25 513.00 513.00 513.00 623.98 623.98 630.41 730.96

556.94

481.65

666.00

For NER under head Major Works 60.00 60.00 60.00 57.00 57.00 57.00

57.00 57.00 57.00 39.00 39.00

39.00

60.00

60.00

70.00

SCSP

60.00

60.00

52.91

64.00

Total 600.00 569.22 568.96 570.00 570.00 569.25 570.00 570.00 570.00 662.98 662.98 669.41

850.96

676.94

534.56

800.00

2

Agricultural Products Export Development Authority

Grants-in-aidgeneral 17.00 27.00 27.00 50.00 50.00 50.00

65.00 69.00 69.00 50.00 50.00

50.00

55.00

55.00

13.75

55.00

Subsidies 63.00 63.00 63.00 50.00 62.52 62.52

50.00 50.50 50.50 100.00 100.00 100.00

125.00

125.00

81.00

125.00

Total 80.00 90.00 90.00 100.00 112.52 112.52 115.00 119.50 119.50 150.00 150.00 150.00

180.00

180.00

94.75

180.00

3 Marine Products Exports Development Authority

Subsidies 80.00 80.00 80.00 100.00 90.00 89.63

90.00 90.50 90.50 90.00 90.00

90.00

110.00

110.00

80.00

110.00

4 National Export Insurance Account

Grants-in-aid-general 150.00 150.00 150.00 150.00 150.00 150.00 190.00 190.00 190.00 150.00 150.00 150.00

0.01

0.01

-

30.00

5 Export Credit Guarantee Corporation

Investment 100.00 100.00 100.00 100.00

1.00 - - 0.01 0.01

0.01

0.01

100.00

6 Export Promotion, Quality Control & Inspection

a Export Inspection Council

Grants-in-aid-general 18.75 18.75 15.25 10.00 15.83 15.83

9.00 9.00 9.00 7.00

7.00 7.00

8.00

8.00

5.50

8.00

c Market Access Initiative

Grants-in-aid-in-general 38.00 38.00 38.08 43.00 43.00 43.00 119.00 59.00 59.00 125.00 110.00 110.00

150.00

150.00

116.32

130.00

Other charges 7.00 7.00 6.99 7.00 7.00 7.00

5.00 5.00 4.70

Total 45.00 45.00 45.07 50.00 50.00 50.00 124.00 64.00 63.70 125.00 110.00 110.00

150.00

150.00

116.32

130.00

d Center for WTO Studies

Other charges 3.00 3.00 1.50 4.00 4.00 4.00

2.00 2.00 2.00 2.00 2.00

2.93

5.00

9.58

5.00

7.00

e Assistance to Institutions

Grants-in-aid-general

f Indian Institute of Foreign Trade 10.00 10.00 3.00 10.00 11.51 9.48

7.78 7.78 7.68 8.00 8.00

8.00

50.00

12.85

12.50

40.00

g Indian Institute of Packaging 3.00 3.00 3.00 5.00 4.90 4.13

3.00 2.00 2.00 2.00 2.00

1.50

6.00

6.00

3.20

3.00

h. IIPM 0.25 0.25 0.25 0.25 1.00 1.00 - - -

Total 13.25 13.25 6.25 15.25 17.41 14.61

10.78 9.78 9.68 10.00 10.00

9.50

56.00

18.85

15.70

43.00

j Quality Council of India

Grants-in-aid-general

7 Modernisation & Upgradation

a Secretariat-Economic Services 5.00 5.00 1.97 5.00 5.00 4.88

5.00 2.50 0.19 5.00 5.00

2.25

5.00

5.00

1.85

4.00

b Director General of Foreign Trade

Other Administrative Expenses 6.00 6.00 5.03 6.00 6.00 5.90

4.00 4.00 3.95 5.00 5.00

4.90

10.00

10.00

6.18

10.00

c DGCI & S

DGCI & S -Major Work 7.00 67.78 64.26 5.00 7.00 5.00

6.00 6.00 5.28 5.00 5.00

5.15

5.00

3.50

1.33

4.65

FDDI, Fursatganj, Major Work 21.00 21.00 21.00

20.22 20.22 20.22

0.01

0.01

-

FDDI, Jodhpur,Major Work

60.00

60.00

60.00

37.00

8 Footwear Design & Dev. Inst., Noida

Grants-in-aid-general 2.00 2.00 2.00 5.00 5.00 5.00

4.00 4.00 4.00 3.00 3.00

3.00

1.00

4.13

1.00

-

2007-08 2008-09 2009-10 2010-11 2011-12

2012-13

BE RE Actual BE RE Actual BE RE Actual BE RE Actual

BE

RE

Actual 31.12.2011

9 Computerization & DGS & D

Other administrative Expenses 5.00 5.00 3.51 4.00 4.00 3.31

4.00 4.00 3.53 5.00 5.00

4.05

4.00

40.72

3.27

20.00

B Agricultural Sector

1 Tea Board

Subsidies 73.00 69.90 40.00 35.00 35.00 40.75

35.00 38.00 38.00 31.00 31.00

31.00

61.00

117.15

45.75

96.00

Grants-in-aid-general: (R&D) 25.00 12.00 8.00 20.00 25.00 17.00

20.00 20.00 20.00 12.00 27.00

27.00

4.00

4.00

3.00

4.00

Subsidies to small growers

Subsidies to NER 54.00 54.00 22.00 52.00 52.00 52.00

52.00 52.00 52.00 70.00 70.00

70.00

82.00

82.00

61.50

82.00

Grants-in-aid-general to NER 8.00 8.00 6.00 8.00 8.00 8.00

8.00 8.00 8.00 17.00 17.00

17.00

8.00

8.00

6.00

8.00

SCSP- Subsidies

10.00

10.00

5.00

10.00

Contribution to SPTF 15.00 15.00 15.00

15.00 15.00 15.00 15.00 15.00

15.00

15.00

-

-

Total 160.00 143.90 76.00 130.00 135.00 132.75 130.00 133.00 133.00 145.00 160.00 160.00

180.00

221.15

121.25

200.00

Tea Plantation Fund

Grants-in-aid: Tea development fund 53.00 53.00 49.42 10.74 10.74 4.06

4.06 4.06 4.06

6.20

-53.00 -53.00 -49.42 -10.74 -10.74 -4.06 -

4.06 -4.06 -4.06 -

6.20

2 Rubber Board

Grants-in-aid-general 75.00 75.00 75.00 89.00 89.00 89.00

90.00 98.00 98.00 120.00 120.00 120.00

125.50

104.57

62.71

125.50

Subsidies(NER) 15.00 17.50 17.50 25.00 25.00 25.00

30.00 30.00 30.00 30.00 30.00

30.00

34.50

44.50

17.24

34.50

SCSP-Grants-in-aid-General

10.00

10.00

5.01

10.00

Total 90.00 92.50 92.50 114.00 114.00 114.00 120.00 128.00 128.00 150.00 150.00 150.00

170.00

159.07

84.96

170.00

3 Coffee Board

Subsidies 26.00 26.00 26.00 60.00 51.00 31.78

45.00 37.00 37.00 30.00 30.00

30.00

43.50

43.50

32.62

48.50

Grants-in-aid-general 28.00 28.00 28.00 47.75 47.24 47.75

31.00 35.49 35.49 46.00 46.00

46.00

51.00

51.00

39.24

56.00

Grants-in-aid-general to NER 3.00 3.00 3.00 6.00 3.00 3.36

2.00 2.00 2.00 2.00 2.00

2.00

4.00

4.00

2.00

4.00

Subsidies to NER 3.00 3.00 6.00 3.00 2.64

2.00 2.00 2.00 2.00 2.00

2.00

1.50

1.50

1.12

1.50

SCSP-Subsidies

5.00

5.00

3.75

5.00

Total 60.00 60.00 57.00 119.75 104.24 85.53

80.00 76.49 76.49 80.00 80.00

80.00

105.00

105.00

78.73

115.00

2007-08 2008-09 2009-10 2010-11 2011-12

BE RE Actual BE RE Actual BE RE Actual BE RE Actual

BE

RE

Actual 31.12.2011

4 Spices Board

Grants-in-aid-general 25.00 28.00 28.00 25.00 30.00 30.00

30.00 32.00 32.00 32.00 32.00

32.00

36.00

36.00

27.01

36.00

Subsidies 20.00 20.60 19.98 20.00 23.00 23.00

24.00 24.00 24.00 45.00 45.00

45.00

49.00

49.00

36.75

49.00

Grants-in-aid-general: NER 2.50 2.50 2.50 2.50 2.50 2.50

3.00 3.00 3.00 4.00 4.00

4.00

5.00

5.00

3.75

5.00

Subsidies (NER) 2.50 2.50 1.50 2.50 2.50 2.50

3.00 3.00 3.00 4.00 4.00

4.00

5.00

5.00

3.76

5.00

SCSP-Grants-in-aid-General

2.50

2.50

1.87

2.50

SCSP-Subsidies

2.50

2.50

1.86

2.50

Total 50.00 53.60 51.98 50.00 58.00 58.00

60.00 62.00 62.00 85.00 85.00

85.00

100.00

100.00

75.00

100.00

5 Cashew EPC

Grants-in-aid-general

5.00 5.00 5.00

4.02

1.00

Total

5.00 5.00 5.00

4.02

1.00

6. Crop Insurance 1.00 1.00

10.00 0.01 0.01 0.01

0.01

0.01

0.01

New Schemes

Gem & Jewellery Sector

0.05

Leather & leather Product Sector

30.03

Pharma Sector

0.02

Tea Board

0.20

Rubber Board

0.04

Total

30.34

Grant Total(Dept. of Commerce) 1,475.00 1,505.00 1,411.28 1,442.21 1,470.00 1,442.21 1,560.00 1,500.00 1,496.04 1,680.00 1,680.00 1,683.19 2,000.00 1,866.00 1,285.40 2,100.00

Non-Plan Schemes

(Rs. in crore)

2007-08 2008-09 2009-10

2010-11 2011-12

2012-13

BE RE Actual BE RE Actual BE RE Actual BE RE Actual

BE

RE

Actual 31.12.2011 BE

1. Secretariat-Economic Services 37.00 37.00 35.87 38.10 43.87 48.87

55.88 55.65 57.28 57.30 60.73

56.13

63.47

63.47

46.08 65.57

Foreign Trade and Export Promotion

2 2. Trade Commissioners 78.50 78.50 70.64 80.00 90.79 86.60

98.58 97.08 98.72 100.60 106.22

98.11

110.81

110.81

89.52 112.25

3 3. Director General of Foreign Trade 45.71 45.71 41.62 47.80 57.89 60.39

62.13 71.82 77.08 63.00 79.00

76.21

83.32

83.32

64.96 87.00

4 4. Assistance for Export Promotion and Market Development

4.01 Export Subsidy 694.00 1594.00 1587.11 1294.00 2394.00 2384.10 1542.72 1542.72 1528.27 1527.55 3527.55 2179.50 3000.00 931.42 735.20

1300.00

4.02 Grants in aid to Export Promotion and Market Development Organisation 55.00 55.00 52.25 55.00 52.25 52.25

55.00 53.00 53.00 56.00

56.00 56.00

50.00

50.00

25.00 50.00

4.03 Interest Subsidy to Banks 300.00 300.00 500.00 500.00 200.00 200.00 250.00 654.00 654.00

1,000.00

996.00

996.00 1000.00

5 5. Development of Free Trade/ Export Processing Zones/Special

5.01 Kandla SEZ 5.09 5.08 5.38 5.62 6.19 7.15

6.21 9.38 9.48 8.49 11.47

9.72

9.81

9.81

6.65 9.00

5.02 Electronics (SEEPZ) SEZ 5.65 6.25 5.85 6.54 7.36 6.90

7.30 8.49 8.58 8.02 8.55

8.40

6.66

6.66

5.41 7.70

5.03 Falta SEZ 2.62 2.85 2.56 3.38 3.81 3.38

3.99 4.80 4.18 4.05 4.06

3.56

3.75

3.75

2.09 3.80

5.04 Madras SEZ 4.40 4.28 4.22 4.66 5.23 5.92

5.64 6.15 6.36 5.87 5.22

5.19

5.53

5.53

4.61 6.25

5.05 Cochin SEZ 2.95 3.01 2.91 3.64 4.21 4.31

5.04 5.29 4.93 5.61 6.27

4.48

6.30

6.30

4.31 6.40

5.06 Noida SEZ 5.47 5.75 5.39 6.00 6.70 7.14

6.56 7.13 6.82 6.67 7.22

6.14

6.30

6.30

5.26 6.65

5.07 Visakhapatnam SEZ 2.65 2.92 2.96 3.00 3.22 3.82

4.00 4.57 4.05 4.78 5.23

4.87

4.60

4.60

4.00 5.70

5.08 Indore SEZ 0.55 0.47 0.48 0.56 0.64 0.72

0.68 0.84 0.97 0.77 1.12

1.08

1.15

1.15

1.02 1.32

5.09 Jaipur SEZ 0.41 0.34 0.25 0.41 0.47 0.36

0.48 0.44 0.44 0.47 0.54

0.47

0.57

0.57

0.40 0.60

5.10 Manikanchan SEZ Kolkatta 0.49 0.44 0.39 0.51 0.57 0.49

0.70 0.64 0.59 0.64 0.70

0.63

0.72

0.72

0.45 0.70

5.11 Moradabad SEZ 0.39 0.20 0.17 0.28 0.29 0.22

0.31 0.35 0.32 0.31 0.36

0.36

0.37

0.37

0.25 0.40

5.12 Maha Mumbai SEZ 0.40 0.16 - 0.40 0.44 0.08

0.46 0.38 0.15 0.46 0.37

0.16

0.48

0.48

0.28 0.45

5.13 Jodhpur SEZ 0.33 0.23 0.18 0.30 0.36 0.22

0.39 0.39 0.31 0.39 0.44

0.35

0.46

0.46

0.30 0.47

5.14 Surat SEZ 0.16 0.12 - 0.16 0.20 0.23

0.20 0.29 0.31 0.25 0.43

0.39

0.46

0.46

0.24 0.40

5.16 Indian Institute of Foreign Trade (IIFT)

6 Agricultural and Processed Food Products Export Development Authority

0.50 0.50 2.00 2.00 2.00

1.00

1.00

0.25 1.00

7 Marine Products Export Development Authority

5.00 5.00 4.41 5.00 5.00 5.00 5.00

5.00 5.00 7.00 7.00 7.00

5.00

5.00

3.75

5.00

2007-08 2008-09 2009-10 2010-11 2011-12

2012-13

BE RE Actual BE RE Actual BE RE Actual BE RE Actual

BE

RE

Actual 31.12.2011 BE

8 Other Schemes of Foreign Trade and Export Promotion

8.01 Director General of Commercial Intelligence and Statistics

13.50 13.55 13.57 13.95 15.95 15.96 16.81

19.63 19.44 19.88 22.96 21.41

23.96

23.96

18.23

24.40

8.02. Export Promotion Quality Control and inspection

8.02.02 Export Inspection Council

8.03 Contributions to International Organisations 12.75 13.25 11.60 14.00 18.50 7.39

18.50 15.00 9.14 20.00

20.00 14.02

20.00

24.00

14.74 24.00

8.04 International Conferences 0.30 0.30 0.04 0.30 1.05 0.99

1.00 1.00 1.66 1.00 1.00

0.18

0.50

0.50

0.50

8.08 Others 1.92 2.32 1.98 2.33 1.47 1.06

1.52 1.09 0.80 1.62 1.62

1.22

1.40

1.40

0.72 1.40

Plantations

9 Commodity Boards

9.01 Tea Board 18.75 18.75 18.75 18.75 21.86 21.86

25.00 25.00 25.00 27.00 27.00

27.00

9.10

38.10

32.25 39.00

9.02 Rubber Board 10.25 10.25 10.25 10.25 13.25 13.25

15.00 15.00 15.00 20.00 20.00

20.00

6.74

36.74

30.33 37.50

9.03 Coffee Board 14.25 14.25 14.25 14.25 14.25 14.25

77.28 77.28 77.27 22.00 263.00 263.00

7.41

97.41

39.41 39.80

9.04 Spices Board 1.00 1.00 1.00 1.00 2.00 2.00

2.00 2.00 2.00 4.00 4.00

4.00

1.35

9.35

6.35 9.35

10 Other Schemes of Plantations

Corporation of India

10.02.01 Price Stabilization Fund 0.01 0.01 0.01 0.01 0.04 0.03

0.05 0.05 0.05 0.05 0.32

0.23

0.13

0.13

0.13

11 D.G.S. & D 46.50 45.01 41.56 47.80 67.37 69.12

73.57 82.67 77.91 74.27 89.74

87.27

80.23

89.65

48.20 76.26

Less Receipts

-

9.42

Total

80.23

12 Grants-in-Aid –Export to Cuba 282.00 124.73

Grand Total 1066.00 2266.00 2235.65 1960.00 3464.00 3448.79 2092.00 2313.63 2295.61 2300.05 4994.12 3613.08 4511.58 2600.00 2186.26 2923.00

Table 5.2 Eleventh Plan Outlay and Outlay & Expenditure for the Annual Plans (Rs. in crore)

11th Plan 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13

Outlay Outlay Actual Outlay Actual Outlay Actual Outlay Actual Outlay Actual Outlay

A Industry & Mineral Sector

1 Assistance to States for infrastructure

3,793.00 600.00 568.96 570.00 569.25 570.00 570.00 662.98 669.41 850.96 534.56 800.00

2 Agricultural Products Export Development Authority (APEDA)

720.50 80.00 90.00 100.00 112.52 115.00 119.50 150.00 150.00 180.00 94.75 180.00

3 Marine Products Export Development Authority

450.00 80.00 80.00 100.00 89.63 90.00 90.50

90.00 90.00 110.00 80.00 110.00

4 Export Credit Guarantee Corporation 800.00 100.00 100.00 100.00 - 1.00

- 0.01 0.01 100.00

5 National Export Insurance Account

1,000.00 150.00 150.00 150.00 150.00 190.00 190.00 150.00 150.00 0.01 30.00

Export Promotion Quality Control and Inspection

6 ii. Export Inspection Council 50.00 18.75 15.25 10.00 15.83 9.00

9.00 7.00 7.00 8.00 5.50

8.00

7 iii. Market Access Initiative 550.00 45.00 45.00 50.00 50.00 124.00

63.70 125.00 110.00 150.00 116.32 130.00

8 iii. Centre for WTO Studies 20.00 3.00 1.50 4.00 4.00 2.00

2.00 2.00 2.93 5.00 5.00

7.00

9 v. Assistance to Institutions

10 (a) Indian Institute of Foreign Trade 40.00 10.00 3.00 10.00 9.48 7.78

7.68 8.00 8.00 50.00 12.50

40.00

11 (b) Indian Institute of Packaging 30.00 3.00 3.00 5.00 4.13 3.00

2.00 2.00 1.50 6.00 3.20

3.00

12 C) Footwear Design & Dev. Inst. (Noida) 15.00 2.00 2.00 5.00 5.00 4.00

4.00 3.00 3.00 1.00 1.00

-

d) Footwear Design & Dev. Inst. Jodhpur 60.00 60.00

37.00

13 vi. Quality Council of India - -

Modernisation and Upgradation

14 a. Secretariat - Economic Services 17.00 5.00 2.02 5.00 4.88 5.00

0.19 5.00 2.25 5.00 1.85

4.00 15 b. DGFT 25.00 6.00 5.00 6.00 5.90 4.00

3.95 5.00 4.90 10.00 6.18

10.00

16 c. DGCI&S 17.00 7.00 3.00 5.00 5.00 6.00

5.28 5.00 5.15 5.00 1.33

4.65

17 Footwear Design & Dev. Inst. (Rai Bariely) 85.00 62.58 21.00 21.00 20.22

20.22 - 0.01 -

-

19 Computerisation in DGS&D 23.00 5.00 3.36 4.00 3.31 4.00

3.53 5.00 4.05 4.00 3.27

20.00

Total - I & M Sector 7,635.50 1,114.75 1,134.67 1,145.00 1,049.93 1,155.00 1,091.55 1,219.99 1,208.19 1,444.99 925.46 1,483.65

B Agricultural Sector

19 Tea Board

800.00 160.00 76.00 130.00 132.75 130.00 133.00 145.00 160.00 180.00 121.25 200.00

20 Rubber Board

580.00 90.00 92.50 114.00 114.00 120.00 128.00 150.00 150.00 105.00 84.96 170.00

21 Coffee Board 600.00 60.00 57.00 119.75 85.53 80.00

76.49 80.00 80.00 170.00 78.73 115.00

22 Spices Board 300.00 50.00 51.98 50.00 58.00 60.00

62.00 85.00 85.00 100.00 75.00 100.00

23 Tobacco Board - -

-

24 Cashew EPC - 5.00

5.00 -

1.00

25 IIPM 0.50 0.25 0.25 0.25 1.00 -

26 Crop Insurance - 1.00 10.00 0.01 0.01

0.01

Total - Agricultural Sector 2,280.50 360.25 277.73 415.00 391.28 405.00 404.49 460.01 475.00 555.01 359.94 586.01

C New Schemes

Gem & Jeweller Sector

0.05

Leather & lether Product

30.03

Pharma Sector

0.02

Tea Board

0.20

Rubber Board

0.04

Total

30.34

Grand Total - Department of Commerce 9,916.00 1,475.00 1,412.40 1,560.00 1,441.21 1,560.00 1,496.04 1,680.00 1,683.19 2,000.00 1,285.40 2,100.00

Table 5.3

State Wise Unspent balance (Actual) as on 31.1.12 for the Scheme for Central Assistance to the States for Developing Export Infrastructure and Other Allied Activities (ASIDE)

(Rs. in crore)

Andhra

Pradesh

Arunachal

Pradesh

Assam Bihar Chandigarh Chhattisgarh Goa Gujarat Haryana Himachal

Pradesh

J&K Sikkim Tamil

Nadu

0 0 0 0 1.40 0 0 0 0 0 5.30 0 0

Kerala Madhya

Pradesh

Maharashtra Manipur` Meghalaya Jharkhand Mizoram Nagaland Orissa Punjab Rajasthan Pondicherry

0 0 0 0 0 5.49 0 0 0 0 0 1.36

Tripura UP Uttaranchal WB Karnataka A&N D&N Haveli Daman &

Diu

Delhi Lakshadweep Total

0 0 0 0 0 0.57 1.50 0.92 2.89 2.27 21.70

Unspent Balance for the ASIDE Scheme- Central Sector

(Rs. in crore)

APEDA Border

Road Org.

Chennai

Port Trust

CSEZ Engg. EPC

Kol.

CONCOR Council for

Leather

Exports

DC(SSI) DM North

24 Pargana

Handloom

EPC

EPC

Handicrafts

FSEZ FDDI,

Noida

25.17 0 0.00 0 0 0.00 0 0.86 0 0 0 0 0

ILFS ITPO KSEZ MSEZ G&J EPC Rubber

Board

MMTC NIFT NSEZ RITES MP. SEDC

Bhopal

Mani SEZ

Kol

MPEDA

0 0 0 0 0.00 0 0.50 0 0 0.00 0.00 0

DOC Govt. of

Kerala

Govt. of

West

Bengal

GNIDA HRDI HPSIDC IDI J&KSIDCL MPAKVNL NCTI Proj. EPC STCL Ltd. TNWICL,

Chennai

0.15 0 5.00 0 2.40 5.40 0 5.00 0 0.00 0.00 0.00 0.00

NMPT

M’lore

PSIEC CWC Cashew

EPC

SEEPZ SIDICO

Sikkim

Spices

Board

VSEZ WEFPI&

HDC.Kol

WE TPO Govt. of

Gujarat

Govt. of

Mizoram

Govt. of

Tripura

0.00 0 0 0 0 0 0 0 1.84 0.00 4.50 0 0

Tea Board Govt. Of

Meghalaya

Total

0 0 46.32

183

CHAPTER VI

REVIEW OF PERFORMANCE OF AUTONOMOUS AND STATUTORY BODIES

(A) Autonomous Bodies

I. Export Inspection Council (EIC)

The Export Inspection Council was set up by the Government of India under Section 3 of the

Export (Quality Control and inspection) Act 1963 as an apex body to provide for sound

development of export trade of India through quality control and pre-shipment inspection. The Act

empowers the Central Government to notify commodities and their minimum standards for exports,

generally international standards or standards of the importing countries and to set up suitable

machinery for inspection and quality control. The EIC is assisted in its functions by the Export

Inspection Agencies (EIAs) located at Chennai, Kochi, Kolkata, Delhi and Mumbai having a

network of 29 sub-offices and laboratories to ba ck up the pre-shipment inspection and certification

activity. In addition, EIC also designates inspection agencies and laboratories to supplement its

own activities as required.

The main functions of EIC are:

(i) to advise the central government regarding measures to be taken for enforcement of

quality control and inspection in relation to commodities intended for export; and

(ii) to draw up programmes for quality control and inspection of commodities for exports.

Certification of Exports

The value of exports certified by the EIAs during the year 2010-11 was Rs.13775.03 crores.

During April-Dec 2011, the value of exports certified by the EIAs was Rs. 9755.32 crore, as

given in table 6.1

184

Table 6.1

Products Certified for Exports

Group/ product Name Value of products certified

(Rs in Crores)

Fish & Fishery Products 6060.69

Basmati Rice 261.97

Black Pepper 97.75

Egg Products 129.03

Milk & Milk Products 1100.70

Poultry 73.31

Honey 195.50

Chemical & Allied products 36.17

Engineering 87.98

Other Schemes 1732.22

Total 9775.32

Source: EIC

EIAs have also been authorised to issue various types of certificates for consignments

exported such as health, authenticity, Non- Genetically Modified Organism, etc.

Fees and Revenue Generation

The basic source of revenue of EIC/EIAs continued to be from monitoring and inspection fees

realized for different notified and non-notified products as well as certification under GSP and other

preferential tariff schemes. The fees charged is at a level of 0.4% of

185

FOB value for products inspected under consignment wise inspection, while it is 0.2%

of FOB value for products under systems certification.

Testing is mostly carried out for samples collected for the purposes of inspection &

certification and are generally not charged separately, while some amount of samples

are tested for other government departments and industry on cost basis.

The total revenue generated in the year 2010-11 by the organization was to the tune of

Rs.63.23 crores. The revenue realized between April – Dec 2011 was Rs.47.22 crores.

The break-up of actual fee realized under various schemes and activities during April-

December 2011 is given in Table 6.2.

Table 6.2

Fees Realized

Rs. In Lakhs

Schemes/Activities Fees realized till 31 Dec 2011

Inspection & certification

Fish & Fishery Products 1194.38

Basmati Rice 156.64

Black Pepper 58.62

Egg Products 71.44

Milk & Milk Products 92.13

Poultry 6.11

Honey 41.97

Chemical & Allied products 26.74

Engineering 39.26

Other Schemes 270.70

Total from Inspection & Certification 1957.99

Certificate of Origin 2666.66

Other Income 97.56

Total 4722.21

Source: EIC

186

II. Indian Institute of Foreign Trade (IIFT)

Indian Institute of Foreign Trade (IIFT) is a Society registered under the

Societies Registration Act XXI of 1860 (Punjab Amendment) Act of 1957 and functions

under the aegis of Ministry of Commerce, Govt. of India. The Institute came into

existence on 2nd May 1963 and was granted Deemed University status by Ministry of

HRD in 2002. Over the years, the Institute has attained the status of premier institution

for imparting education in the field of International Business. The Institute is currently

operating from its campus in Delhi and leased Centre at Kolkata. Construction of

permanent campus at Kolkata is going-on on the land allotted by Government of West

Bengal.

The Institute was set up as an autonomous organization to help professionalize

country’s foreign trade management and increase exports by developing human

resources; generating, analyzing and disseminating data; and conducting research.

Apart from offering MBA level education in the field of International business, the

Institute is also involved in the research activity and consultancy for studies in the field

of international business on behalf / and for Ministry of Commerce. Apart from this the

Institute also conducts management development programs on topics related to

international business and trade. From these activities the Institute generates

resources for partly meeting its expenditure.

The following have been the approved Plan Schemes of IIFT:

B. PLAN SCHEMES OF IIFT

187

Education, especially higher education, is becoming a lifelong process and will be

inseparably linked with living and working in the years to come. The opening up of

Indian economy in early nineties and the present integrated global economy has been

posing both challenges and opportunities to the international trade sector in this

country. Under these circumstances the role of IIFT, as a pioneer institution, offering

training and research programs in the international trade, has become manifold.

Capacity building and grooming future professionals in international business, have

become, the need of the hour. Though, the Institute has a national mandate, with the

campus only at Delhi, it found it very difficult, to offer its training and research services,

on all India basis effectively.

Under the Five Year Plan Fund allocation, the Institute has been receiving plan grant

from Department of Commerce for following schemes:

1. Construction of Kolkata Campus of IIFT

In order to meet the demand of prospective students of Eastern Region, IIFT

proposed Department of Commerce to set up the Regional Centre at Kolkata. This

was aimed at meeting long standing demand not only from the student of Eastern

Region but also from the local Chambers of Commerce, Federation of Indian Export

Organization and other Trade and Industry Bodies. In addition to this, the prospective

students from Bangladesh, Nepal, Myanmar and Bhutan could also benefit by setting

up the Centre at Kolkata.

With the above in view, in end November, 2005 the Govt. of India approved

setting up of a regional centre of IIFT at Kolkata as an approved Project in the 10th

Five Year Plan. Since then, the SFC has approved estimates of Rs.89 Crore for

construction of the Campus. Currently the construction of the Campus is going on.

188

For the financial year 2012-13, depending upon the progress of work, it is

estimated that within overall allocation of `89 Crore, an amount of `45-50 Crore would

be required

2. Modernization and Up gradation of IIFT

(i) IT Infrastructure

IT infrastructure in IIFT plays a very important role. Over the years the Institute

has been making efforts to upgrade its IT Infrastructure through the Plan Grant

provisions under the Five Year Plan Periods. Because of these up-gradations the

Institute has been able to match the requirements of students & faculty. The IIFT has

well equipped Computer Centers exclusively for the students and for training and

research activities of the Institute. The Institute has 10 MBPS lease line to provide

internet access to all the terminals. The network facilities have been extended to all

possible places in the campus through wired and wireless devices. The major

components of the IT infrastructure in IIFT include:

1. UPS Systems 2. Computers & Printers

3. Servers 4. Network items

5. Softwares 6. Database Access

7. Bandwidth 8. Data Backup

9. Wi-Fi facility 10. Video Conferencing

During 2012-13, the Institute would strive to further upgrade and modernize the

existing facilities mentioned above. Specifically, Institute plans to upgrade its wired

network and provide facility of Disaster Recovery (DR). Efforts shall continued to be

made to provide State of the Art IT facilities to the stakeholders.

189

(ii) Foreign Trade Library

Library is an important part of the Institute and positively responsible for

increasing global business environment and skilful vision of its faculty and students.

All the programs of the IIFT are made qualitatively competitive and regularly updated

by the Library resources. In order to update the knowledge of student of IIFT pursuing

career in international business both at Delhi and Kolkata Campuses of the Institute, it

is important that the Library is kept fully stocked with the latest books, journals, online

data basis, magazines etc. in all the subject areas that are taught in different

management courses. With the help of plan funds and own resources, the Foreign

Trade Library of IIFT is a fully automated library and is one of the largest of its kind in

India.

The Library of IIFT is a vast knowledge bank with an impressive collection of

99,638 resources that comprises of 72,565 books/CDs-volumes, 17281 bound

periodicals and 643 periodicals. In addition to these, its collection comprises of

research reports, company reports, CD-ROMs, video cassettes in the field of

Management, Foreign Trade and WTO related issues.

In order to facilitate online access to information, the Library has also

subscribed to trade related 25 online and offline databases. Apart from the above the

Library is also a resource centre on WTO for fulfilling the need of Research Scholar,

Policy Maker and Academicians on the issues relating to WTO and its implications for

India. Research Scholar from various Universities, both Indian and foreign, make use

of the Library for their Doctoral and Post-Doctoral research work. Keeping in view the

research projects undertaken by the Institute, a need is being felt to subscribe new

databases.

190

During 2012-13, the Institute shall make use of its internal “Review Committee”

for subscribing new databases required for upcoming research projects and for making

use in teaching requirements.

(iii) Training Facilities

The world class training facilities at any institution help to bring the education in

the field of international business at par with the leading B-Schools at national and

international level. The Institute has been able to upgrade these facilities with the

annual plan grant support of the DoC allocated thru Five Year Plans. Under the

assistance from the Plan fund for this scheme, the Institute has tried to upgrade

facilities in class rooms, hostels, conference rooms, auditorium etc. Provision of latest

teaching aids as also creation of the state-of-the-art class rooms and syndicate rooms

have helped the faculty to make the pedagogy and methodology of teaching really

effective and also expose the students to the latest developments taking place in

different areas the world over.

Over the years it has been felt that the students’ facilities need to be upgraded

and modernized on yearly basis. A number of developments have taken place in the

form of modernized facilities for classrooms, hostels and other facilities. The Institute

is planning to make a major shift in providing these facilities to the students in the year

2012-13.

3. Development of Hindi and other Regional Languages

In order to promote use of Hindi, the Institute has been conducting

Management Development Programs on Export Documentation, Marketing and

Procedure through the medium of Hindi in all parts of the country. These MDPs are

targeted at small and medium entrepreneurs who do not have the access to changes

in the trade policy and procedure. With the assistance of the plan funds under five

year plans, the Institute has been able to conduct a large number of such programs in

191

relatively smaller cities which has helped the small & cottage entrepreneurs to take

advantage of these programs as they are being conducted in Hindi. After attending

these programs small & cottage entrepreneurs have been able to market their

products in different overseas markets and thus earning precious foreign exchange for

the country. More such efforts in organizing the MDPs all over India are planned for

2012-13

4. Centre for SMEs

The SME center of excellence at IIFT acts as a knowledge center for Small and

Medium Entrepreneur to build their competitiveness in international trade as socially

responsible, sustainable and competing business in providing products and services of

acceptable standards.

The center’s mission is to strengthen SMEs in internationalizing their business

through: -

a. Training,

b. Advisory services,

c. Cutting edge research,

d. Dissemination of required business information; and

e. Networking with support and service institutions.

The Center strives to achieve the following objectives in accomplishing the stated

mission:

1. Imparting training on management functions, market, product & quality aspects,

sector specific tools and methodologies for business growth, and trade related

issues to all the stake holders of SMEs.

2. Handholding, Advisory services and awareness building through business

intelligence services with suitable face of suitable IT technology.

192

3. Networking with other support and service institutions both private and public at

regional, national and International level to build capacities of SMEs. The centre

shall act as facilitating platform to ensure convergence of services benefiting

SMEs.

During 2012-13 also, the Centre shall strive to achieve the above outlined objectives.

5. Capacity Development of Faculty and Research

In order to update the knowledge and skills of faculty it is essential that they are

encouraged to attend national / international seminars / workshops / training programs

etc. Such activities ultimately lead to knowledge enhancement of the concerned

faculty which can be utilized for the benefits of the Institute. Every year the Institute

has been nominating its faculty for attending such programs. As a regular initiative the

Institute has started deputing faculty to Harvard Business School for a period of 6

months’ on course related to GTAP.

The Institute also encourages its faculty to contribute for in-house research

activity. Presently, all research activities of the Institute are sponsored in nature. IIFT

being an educational Institute, research continues to be a core activity at the Institute.

Apart from studies sponsored by the Government and other national and international

organizations, the Institute on its own has also begun a series of research studies on

the topic of national and international importance followed up with the seminars /

workshops for wider dissemination of findings of the studies. In this direction the

Institute conducted 2nd research conference on “Empirical Issues in International Trade

and Finance” organized at Delhi Campus during 16 -17 December, 2010 and

witnessed 140 papers being presented.

Over the years with the increasing requirement to depute faculty for such

programs and conduct in-house research, the Institute has been finding difficult to fund

the expenditure. Therefore, support from plan grant has become essential. To begin

193

with an amount of `Rs.1 Crore per year for Capacity Building of faculty and

`Rs.2 Crore per year for research has been budgeted in the 12th Five Year Plan

Period.

For 2012-13, it is planned that in-house research directed towards the

objectives mentioned above shall be conducted. Further, to provide latest knowledge

in the area of International Business to the students of the Institute, faculty members at

all levels shall be deputed for attending orientation programs.

III. Indian Institute of Packaging (IIP)

The Indian Institute of Packaging is an apex body in the field of Packaging and was

registered under Society Registration Act 1860 in the year 1966 by the Packaging

fraternity with the financial support of the Ministry of Commerce & Industry, Govt. of

India.

The primary objective of the Institute is to stimulate consciousness of good packaging,

undertake, promote, study research and development in packaging and package

design for export promotion, provide short term and long term education and training

programme in Packaging as well as to organize seminars, conferences in collaboration

with other Ministries, govt. departments, and Industry Associations.

The Institute has since opened its branches at Delhi, Kolkata, Chennai, and

Hyderabad. The Institute has also planned to set up its branches at Ahmedabad and

North East under the 12th five year plan. The Institute has submitted application to

AICTE for recognition of it’s PGDP course on December 22’ 2011. The organizational

chart has also been restructured for better functioning, while major renovation work is

in progress at head office to give a corporate look.

Accomplishments (Packaging Development and R&D)

194

The Institute’s Consultancy & Research and Development department undertook and

completed some of the major projects including Fibre Board Box for Packaging of

Pharma Capsules, Market Survey and Hand book preparation regarding consumption

of packaging material for processed food products, use of Vignette Technology as anti

counterfeit devices for Packaging of Pharma products.

The Institute has also decided to undertake Consultancy project on:

- R&D about minimal processing and packaging of Tender Coconut water for

shelf life enhancement and value addition to the Village Industry entrepreneurs

- Setting up of lab model of controlled atmosphere/modified atmosphere, storage

of fresh fruits and vegetables

- Packaging of frozen/chilled meat under MAP for exports for APEDA, during

December,2011 to March,2012

Ministry of Food Processing Industry (MOFPI) Workshops

The Institute conducted training workshop on behalf of Ministry of Food Processing

Industry at various centers during April – December,2011.

Date Location Subject

18 April,2011 Indore Packaging of Processed, Soyabean, and other traditional food products

9 Sept.2011 Bangalore Packaging of Fresh & Processed Food Products

21 Sept.2011 Cochin Packaging of Snack Food and traditional processed food

30 Sept.2011 Itanagar Packaging of Fresh and Processed Food Products

14 Oct.2011 Dehradun Packaging of Fresh and Processed Food Products

11 Nov.2011 Dimapur Packaging of Traditional Processed Foods

2 December,2011 Bikaner Packaging of Namkeen and other Indian sweetmeat products

195

Residential Global Training Programme

The Institute also conducted training programme sponsored by International

organizations like WPO, and APF as under:

Date Sponsor/Location Subject

14-21 Sept.2011 Sponsored by WPO/ IIP – Mumbai

Packaging Principles Materials and Systems

The programme was simultaneously conducted online with the Packaging Society, UK.

The Institute also conducted 3 days Residential programme for LTTE war affected

widow group from Sri Lanka during 26th-28th September,2011 sponsored by SEWA

group an NGO from Gujarat.

Collaboration Programme

The Institute as Knowledge Partner with National Institute of Food Technology

Entrepreneurs and Management (NIFTM) conducted 3 days training programme on

Packaging of Food Products during 18-21 September,2011 at Kundli, New Delhi.

World Star Packaging Award

India succeeded to win 8 World Star Award during the World Star contest held on 17

November, 2011 at UK which was participated by 42 different countries from the world.

A total number of 273 entries were judged including 12 entries submitted by India.

Exhibition – Indpack 2011

The Institute organized 14th National Packaging Exhibition with the theme “Packaging

for Tomorrow”.

196

The exhibition was held at Hyderabad International Convention Centre during 24th-26th

November, 2011 and Madhya Pradesh being the focused state.

For the first time the Institute has also planned to organize Indpack 2012, to be held in

North East, Guwahati on 15 – 17 March 2012 in association with NERAMAC.

National Conference

The national conference on “Modern Trends in Food Packaging and Pharmaceutical

Products” was also held on 25 and 26 November, 2011 at Hyderabad International

Convention Centre.

The Institute has also planned a National Conference on Packaging of processed

food, beverages, and health care products at, Kolkata, during 20 and 21 February,

2011.

The National Conference on significance of UN Certification for export of Dangerous

Goods is also planned to be held on 1st March, 2012 at Chennai.

Following International programmes are planned to be held up to March, 2012.

Date Location Subject

8 – 10 Jan. 2012 Dhaka Training Programme in Packaging

23Jan.– 3 Feb.2012 Indo African Forum Summit IIP – Mumbai

Packaging of fresh and processed food products

13 -24 Feb.2012 Indo African Forum Summit IIP – Mumbai

Packaging of fresh and processed food products

197

The following workshop/ programmes are also planned on behalf of the MOFPT upto

March,2012.

Date Location Subject

5 Jan.2012 Nashik Packaging of fresh grapes and wines

20 Jan.2012 Lucknow Mango

10 Feb.2012 Raipur-Chattisgarh Traditional Food

17 Feb.2012 Amritsar Basmati Rice

24 Feb.2012 J&K Dry Fruits

Accreditation

The testing laboratories of the Institute at Mumbai are accredited to National

Accreditation Board for Testing and Calibration Laboratories as per ISO/IEC:17025.

The testing laboratories of the Institute are also accredited to Bureau of Indian

Standards.

All the testing laboratories of the Institute located at Delhi, Kolkata, Chennai, and

Hyderabad are also authorized by Directorate General of Shipping and Directorate

General of Civil Aviation, GOI, for testing the packages for carriage of dangerous

goods.

The laboratories of the Institute are also recognized by the Department of Scientific

and Industrial Research (ESIR), Ministry of Science and Technology under the

scheme of SIROs.

Testing and Evaluation of Packaging Materials and Packages

The Packaging Industry availed the services of testing and evaluation of packaging

materials and packages from the Institute. The Institute also undertook study of

packages designed for export of dangerous goods, by sea, as well as by air.

198

The Laboratory Department conducted an awareness programme for Industry on

export of dangerous goods and compliance with IMDG, for export of Chemicals,

explosive flammables, corrosive, toxic, organic and inorganic etc.

The Laboratory Department also tested packaging materials for export of fruits &

vegetables on behalf of APEDA and Spices Board.

1322 Packaging Industry tested 2637 no. of samples at various laboratories of the

Institute located at Mumbai, Delhi, Kolkata and Hyderabad. The Institute issued 2186

no. of certificates under IMDG/ICAO to 2172 number of firms after testing 2729

Number of samples up to September,2011 and more than these number of firms are

expected to have their samples tested at IIP laboratory under general and UN

Certification during November 2011 -March,2012.

Training and Education

The Institute also imparts the training and education on Packaging and conducts two

years Post Graduate Diploma in Packaging on Technology and 18 months Distance

Education Programme for working executives.

Currently, 27th batch of 2 year PGDP course is being undertaken at Mumbai with 45

students, and at Delhi 36 students, and 17th batch of Distance Education Programme

will start from January, 2012.

The Post Graduate Diploma in Packaging is accredited by the World Packaging

Organisation and Asian Packaging Federation.

The two years PGDP course has also started with intake of 16 students at IIP -

Hyderabad from the academic year 2011-12.

199

The Institute also conducts 3 months certificate course in Packaging (ITC) since 1968.

The intensive training course is conducted at Mumbai, Delhi, Kolkata, Chennai, and

Hyderabad. The course concluded with 17 participants at Mumbai in the month of

November, 2011.

The silver Jubilee, Convocation for award of certificate to the 25th batch of PGDP

students is being planned, where Hon’ble Minister of State for Commerce is likely to

grace the event as Chief Guest, during 15th Feb 2012.

International Participation

Director – IIP has participated at WPO Board Meeting held at Granthamlinconshire,

UK during 15 to 16 November, 2011.

Publication

The Packaging India Journal was published by the Institute during April,2011,

December,2011 which covers the developments in Packaging in the field of Plastic,

paper, glass, tinplate and other packaging materials including subjects on converters

in Packaging, packaging Machinery Manufacturers etc.

Welfare of SC/ST

The Institute reserves the seats for admission to Post Graduate Diploma in Packaging

also during the recruitment. The Institute also has a scheme of Scholarship for

candidates whose performances are found excellent during the PG Diploma in

Package Course.

North Eastern Region

200

During the 12th Five Year Plan the Institute has planned to set up its branches in North

East Region under the Plan Fund Scheme.

Plan Fund Utilization The Plan Fund grants received from MOC&I Rs.250 lacs, during 2011-12 for

infrastructural development ( Rs. 220 lacs) and Library, Publication and IT resources

(Rs.30 lacs), is planned to be utilised by March,2012.

B) Public Sector Undertakings

I. State Trading Corporation of India Ltd. (STC)

STC was set up on 18th May 1956 primarily with a view to undertake trade with East

European countries and to supplement the efforts of private trade and industry in

developing exports from the country. Since then, STC has played an important role in

country’s economy. It has arranged imports of essential items of mass consumption

(such as wheat, pulses, sugar, edible oils, etc.) into India and developing exports of a

large number of items from India. The core strength of STC lies in handling

exports/imports of bulk agro commodities. Over the years, STC has diversified into

exports of steel, iron ore, molasses and imports of bullion, hydrocarbons, minerals,

metals, fertilizers, petro-chemicals, etc. This has helped STC achieve high level of

performances in the recent years. STC is today able to structure and execute trade

deals of any magnitude, as per the specific requirement of its customers.

The overall performance of STC during 2009-10, 2010-11, April-September, 2011 vis-

a-vis figures for the corresponding period of the previous year and estimates for the

full year 2011-12 is given below:

201

Table: 6.3

Performance of STC

(Rs. In

Crore)

April – November

2009-10 2010-11 Provisional 2010-11

Actuals Actuals Last year This year (Estimates

)

Exports 1,504 492 281 215 420

Imports 19,049 18,938 8,407 17,619 18,130

Domestic 956 555 250 78 450

Total Turnover 21,509 19,985 8,938 17,912 23,500

Profit Before Tax

(PBT)

170.93 79.63 30.37 30.34* 67.00

Performance during 2010-11

Total Turnover

During 2009-10, STC achieved the highest ever turnover of Rs 19,985 crore during

2010-11. The performance was all the more significant as the same has been

achieved despite a number of factors beyond the control of the Corporation adversely

hampering trade. The Corporation explored a number of new areas of business and

effected increases in business of many existing areas of trade.

Exports

During 2010-11, the Corporation initiated exports of a number of new items of like

molasses, transport & construction vehicles and sesame seeds. It also restarted

operations at its Bhopal office to increase business of agro commodities. Major items

of exports were steel, raw material, iron ore, castor oil, maize and molasses. In view

of non-availability of surplus agro commodities for export and other reasons, the

overall exports during 2010-11 were lower at Rs. 492 crores.

Imports

202

The Corporation’s import turnover at Rs 18,860 crore was almost at the same level as

in 2009-10. During 2010-11, import sales of bullion reached an all time high of about

15000 crore. STC continued to undertake import of pulses on Government directions

for sale in the open market and also procured pulses on behalf of State Governments

for distribution under PDS. A sale turnover of Rs. 345 crore was achieved from these

operations. In spite of extremely volatile market, STC successfully arranged imports

of edible oils, both on its own account as well as for the State Governments of

Maharashtra, Goa, Rajasthan and U.P. for supply under PDS in 1 –litre pouches.

During 2010-11, the Corporation also arranged supplies of imported thermal coal

amounting to over Rs. 650 crore for various poer stations of NTPC spread across the

country. During 2010-11, STC was once again asked by the Govt. of India to import

urea. Accordingly, STC arranged import sale of urea worth over Rs. 2200 crore.

Domestic Sales

The corporation effected total domestic sales worth Rs. 555 crore. This included sale

of oils, seeds and extractions amounting to Rs. 268 crore. The Corporation also

effected sales of hydrocarbons worth Rs. 149 crore and that of pulses amounting to

Rs. 83 crore. Sales of jute goods worth Rs. 47 crore have also been made.

Profitability

During 2010-11, STC earned a Profit Before Tax(PBT) of Rs. 80 crore.

Dividend

The Corporation paid a dividend of 30% of its paid-up equity capital for the year 2010-

11.

Performance during April – September, 2011

Total Turnover

During April-September, 2011, the Corporation achieved a turnover of

Rs.17,912 crore- the highest ever achieved by STC during the first half of

any financial year.

203

Exports

The Corporation experience a decline in its exports from 281 crore during April-

September, 2010 to Rs. 215.00 during April-September, 2011. Iron orre, castor

oil/seed and agriculture commodities were the major items exported by the

Corporation during the half year ending September, 2011. Export of iron ore

amounted to Rs. 95 crore during April.-September, 2011 as against only Rs. 21 crore

during April.-September, 2010. Exports of Agri. Commodities at Rs. 68 crore were

also higher when compared to Rs. 30 crore during the previous year.

Imports

The import turnover of the Corporation for the period April.-September.2011 stood at

Rs. 17619 crore, which was more than double the import turnover of Rs. 8407 crore

during the same period last year. Bullion was once again the forerunner in STC’s

imports with sales of the order of Rs. 10500 crore as compared to Rs. 6960 crore in

April-September, 2010. This was followed by import of coal for various poer plants of

NTPC and the same resulted in sales worth Rs. 56401 crore. Urea import contributed

a turnover of Rs. 1161 crore as against Rs. 948 crore in the previous year. Pulses and

edible oils worth Rs. 85 crore and Rs. 157 crore respectively were also imported

during the period April.-September.

Domestic Trade

During April-September, 2011, the Corporation effected domestic business

of oil seed/extractions (Rs. 20 crore), hydrocarbons (Rs. 18 crore) and jute

goods (Rs.22 crore). Total domestic sales during April-September, 2011

amounted to Rs. 78 crore, which were lower vis-à-vis those effected during

April-September, 2010. Major decline of about Rs. 150 crore was in the

area of oil seeds.

204

Profit

During period under review, STC earned a Profit Before Tax (PBT) amounted to Rs.14

crore. The profit was low due to thin trading margins and significant increase in interest

expenditure.

Box 6.1

Fresh Initiatives by STC

With a view to expand its business and increase the trade margins, the

Corporation has started undertaking direct buying and selling operations. A

beginning in this direction has been made by procuring soya seeds directly

from mandis in Madhya Pradesh. Gradually, operations will be expanded to

include items like chana, wheat & other oils seeds.

To diversify its business activities further, the Corporation has started online

trading of commodities through NCDEX. Steps have also been initiated to

enlarge the supply base by entering into tie-ups with various public/private

sector companies.

STC shall also leverage import operations to generate additional export

opportunities such as export of finished ferro alloys linked to import of

manganese ore.

II. Minerals and Metals Trading Corporation (MMTC)

MMTC Ltd was incorporated in the year 1963 for trading in minerals and metals. It is

actively involved in exploring overseas markets for exports and sourcing material for

domestic needs. With focus on bulk operations and having infrastructure spreading

across the country, MMTC has primarily six core commodity groups viz., fertilizers,

Agro commodities, coal and hydrocarbons, Minerals & Precious metals. The company

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is recognized as India’s largest international trading company and the first Public

Sector Undertaking to be awarded “Premier Trading House” status in the country.

The summary of financial performance of MMTC Limited for the half-year

2011-12 is given below in table 6.4.

Table 6.4

Financial Performance of MMTC

(Rs. in Crore)

Trade

Performance

MOU 2011-12 Prop. Target

Apr-Sept’11

Actual Apr-

Sep’11

Increase (%)

Excellent Rating Excellent

Rating

Exports 3,745 1,873 1,024 (45)%

Imports 55,640 27,820 34,226 23%

Domestic 2,140 1,070 1,115 4%

Total Turnover 61,525 30,763 36,365 18%

Profit Before Tax 120 60 38 (37)%

Profit After Tax 83 42 25 (40)%

Net Profit To

Turnover (%) 0.13 0.13 0.07 90.00

Source: MMTC

The highlights of the financial performance of MMTC during 2011-12 are as follows:

The Company has achieved a turnover of Rs. 36,365 crore for period ended on 30

September, 2011 against MOU target of Rs. 30,763 crore exceeding the target by

18%. In two segments of trading business, namely, import and domestic trade, the

company has witnessed growth as compared to proportionate MOU targets to the

extent of 23% and 4% respectively. Net profit at Rs. 25 crore has a shown a decrease

of 40% as against the MOU target of Rs. 42 crore.

206

Subsidiary/Associates

MMTC Transnational Pte. Ltd. (MTPL), Singapore : The wholly owned foreign

subsidiary was set up in the year 1994 for promoting international trade. During April-

Sept., 2011 it has achieved a business turnover of US$416 million. MTPL continues to

enjoy “Global Trader” status award to it by IE Singapore. To expand and given

impetus to growing trade between India and Africa, MMTC has opened an office at

Johannesburg, South Africa in January, 2011.

Neelachal Ispat Nigam Limited(NINL) : Neelachal Ispat Nigam Limited, a company

promoted by MMTC, IPICOL, NMDC, MECON etc., has set up an iron & steel plant of

1.1 million tonnes capacity, coke oven of 0.8 million tone capacity along with a by-

product plant, captive power plant of 62.50 MW etc. , with total expenditure of Rs

2,000 crores at Kalinganagar, District Jajpur, Orissa. During this period also, NINL

maintained its position of being the largest Pig Iron producer & exporter in the country.

The total turnover and cash profit/loss of the company for the half year Rs. 1,009 crore

and Rs. 67.69 crore respectively. Construction of Phase II expansion of Plan of NINL

for steel making facility (Billets, wire rods) is under progress.

Other Projects

Aiming at diversification and with a view to add value to its existing trading operation,

the Company has undertaken various strategic initiatives following public-private

partnership route. These strategic initiatives are aimed to enhance future

sustainability include:

(a) Commodity Exchange under the name and style of “Indian Commodity

Exchange (ICEX)” which has commenced operations during November, 2009.

207

(b) Participation in equity of Currency Exchange under the name and style of

“United Stock Exchange of India Ltd.” which ahs commenced operations during

September, 2010.

(c) Joining hands with an international producer as a joint venture partner for

setting up a gold/silver medallion manufacturing unit, which would also include

a gold refinery as an integral part, under the name and style of “MMTC-Pamp

India private Limited”. The civil construction activities for medallion

manufacturing unit located in Haryana are already complete and the trail

production for minting of medallions commenced.

(d) For promoting retail sales of value added products like medallions, silverware

and jewellery on all India basis, MMTC has set up a joint venture “MMTC

Gitanjali Private Limited” . The JV commenced operation in April 2009 and

17 showrooms are operational in different cities in India under the Brand name

“SHUDHI”.

(e) Setting up permanent berth with loading facilities for Iron at Ennore Port jointly

with M/s SICAL and L&T Infrastructure under the name and style of M/s. SICAL

Iron Ore Terminals Limited, Chennai .

(f) Development of deep draught iron ore berth at Paradip Port jointly with Noble

Group Ltd and Gammon Infrastructure Projects Ltd. under the name and style

of M/s. Blue Water Iron Ore Terminal Private Limited.

(g) Towards investing in mining infrastructure MMTC has promoted a joint venture

Company with M/s. TATA Steel Ltd. for exploration and development of mines

208

(h) for minerals, ferrous and non-ferrous ores, precious metals, diamonds and coal

etc.

(i) MMTC has been allotted a coal mine in Jharkhand having estimated reserves of

about 700 million MT. The prospecting license for the said mine has been

issued by the concerned authorities and pre-feasibility study commenced.

IV. Project and Equipment Corporation of India Ltd.(PEC)

PEC Limited was formed on 21st April, 1971 as a wholly owned subsidiary of STC.

PEC Limited became an independent Company under the Department of Commerce

w.e.f. 27th March, 1991.

Activities

- PEC is primarily engaged in export of projects, engineering equipment

and manufactured goods, defence equipment & stores and import of

industrial raw materials, bullion and agro commodities.

- Consolidation of existing lines of business and simultaneously

developing new products and new markets.

- Diversification in export of non-engineering items e.g. coal & coke, iron

ore, edible oils, steel scraps, etc.

- Counter trade/special trading arrangements for further exports.

Objectives * To be a profit oriented international trading organization. * To provide adequate return to the stakeholder, commensurate with the market

expectations.

* To seek new opportunities in the global and domestic market.

209

* To focus on export of engineering projects and equipment specially from small

and medium enterprises.

* To trade in commodities such as agricultural products, industrial raw materials,

chemicals and bullion.

* To continuously strive for enhancement of the corporate image of a reliable,

long term and professionally competent organization.

* To continuously strive for improvement in productivity and competitiveness. * To serve as an effective instrument of public policy and social responsibility. Performance

Table: 6.5

The Overall Performance of the Corporation since 2009-10

(Rs. On crore)

Items

2009-10 2010-11 2011-12

MOU

Targets

2011-12

Achievement

(Provisional)

upto

30.09.2011

2012-13

MOU Targets

(Projected)

Sales Turnover 11025.94 9969.94 10600.00 5490.00* 11000.00

Income/Trading Profit 145.55 146.40 161.00 75.14 164.65

Expenditure 42.59 39.80 46.60 20.27 53.25

Profit before Tax 102.89 106.56 114.40 54.87 111.40

Profit after tax 67.72 70.92 76.40 34.87 70.40

Dividend & Corporate

tax

16.38 17.43 18.00 8.72 17.43

Equity 20.00 20.00 20.00 20.00 20.00

Reserves 212.03 265.51 325.00 291.66 371.05

Net Worth 232.03 285.51 345.00 311.66 391.05

* Includes Bullion – Rs. 665.05 crore.

210

Sales Turnover

Table: 6.6

The Sales turnover of the Company since 2009-10

(Rs. In crore)

Year Sales Turnover

2009-10 11,025.94

2010-11 9969.94

2011-12(Prov. Upto 30.09.2011) 5490.00

During the year 2010-11, PEC has achieved sales turnover Rs. 9969.94 crore which

includes exports at Rs. 1136.25 crore, imports at Rs. 7906.80 crore and domestic

sales at Rs. 926.89 crore. The Earning Per Share (Basic & diluted) was Rs. 355

during the year 2010-11 as compared to Rs. 339 in the previous year. MOU rating for

2010-11 is ‘Very Good’(Provisional).

During the year 2011-12, as against target of Rs. 10600 crore, the company has

registered a turnover of Rs.5490 crore up to September, 2011 and as per current

expectations, it is estimated to achieve a total turnover of Rs. 9500 crore.

Exports

Table:6.7

Composition of Exports since 2009-1

(Rs. Crore)

Item 2009-10 2010-11 2011-12

Provisional

Upto 30.09.2011)

Agro commodities 532.09 553.81 322.43

Minerals (Iron Ore) 630.68 552.87 254.53

Engineering &

Manufactured Goods

71.90 26.42 10.46

Others 20.24 3.15 -

T O T A L 1254.91 1136.25 587.42

211

Export sales aggregated to Rs.1,136.25 crore during the year 2010-11. During the

year, PEC secured export orders from Nepal, Bhutan, Ethiopia, Liberia and Kenya for

supply of earthing equipments, transformers, stay rods, conductors, etc. PEC has

successfully supplied equipment of potato processing plant in Kyrgyzstan.

PEC has over the years become one of leading trader in agro commodities. PEC’s has

made export of rice, maize, barley and soyameal of Rs.553.81 crore during the year

2010-11. During the year, PEC achieved exports of Iron Ore valued at Rs.552.87

crore.

Imports

Table: 6.8

Composition of Imports since 2009-10

(Rs. in Crore)

Item 2009-10 2010-11 2011-12 Provisional

upto 30.09.2011

Agro Commodities 2678.33 2530.25 458.61

Industrial Raw material 3579.20 3987.97 3130.19

Bullion (including Diamond) 2569.63 1311.26 695.47

Engineering & Manufactured

Goods

33.34 69.16 41.39

Others 21.07 8.16 10.47

T O T A L 8881.57 7906.80 4336.13

PEC achieved import turnover of Rs.7,906.80 crore during the year 2010-11. PEC

achieved highest ever turnover of Industrial Material like coal/coke, steel, manganese

212

ore etc. of Rs.3,987.97 crore during the year. Bulk import of agro commodities like

pulses, edible oils and steel scrap, bullion etc. were also undertaken.

Domestic Trade

During the year 2010-11, domestic sales in agro commodities and industrial raw

materials like coal, steel, cotton yarn, home appliances, jute, defence items etc.

aggregate to Rs. 926.89 crore.

Dividend

During the year 2010-11, PEC has paid dividend and tax thereon of Rs. 17.43 crore at

the rate of 75% on the share capital of Rs.20 crore.

Memorandum of Understanding

MOU rating for 2010-11 is “Very Good” (Provisional). MOU for the year 2012-13 is

being signed with the Ministry of Commerce & Industry.

Key Initiatives

PEC continues with its commitment to promote export of engineering and

manufactured goods.

Over the years, business of PEC has changed with industrial raw materials, agro

commodities and bullion constituting major part of its turnover and profit. Some of the

key initiatives have been consolidation of existing line of business and selective

diversification into sustainable business areas, improving operational efficiency and

cost effectiveness.

PEC continues to strive in its efforts to capture new opportunities in international as

well as domestic trade to sustain. PEC looks forward optimistically to achieve targets

in future. With a view to leverage, PEC’s core competency in trade related services a

213

feasibility study was conducted on ware-housing facility at port area during the year.

Visakhapatnam and Kota were shortlisted.

PEC is committed technological improvement. Networking through computers within

the organization has been undertaken to implement commercial and accounting

automation and achieve efficiency in operations.

V. Spices Trading Corporation of India Ltd (STCL)

STCL was originally incorporated in the name and style as “Cardamom Trading

Corporation Limited” as a Private Limited Company under the Companies Act 1956 in

October 1982. Consequent to the change of name, the Company obtained a fresh

certificate of incorporation under the name of SPICES TRADING CORPORATION

LIMITED with effect from August 1987 in order to widen its marketing base from

Cardamom to other range of spices.

Thereafter, STCL became a subsidiary of The State Trading Corporation of India Ltd.,

with effect from 14.9.1999 and shares held by the Ministry of commerce were

transferred to the State Trading Corporation of India Ltd.

With the diversified trading activities, the company’s name has been further amended

from Spices Trading Corporation Limited to “STCL LIMITED” and fresh Certificate of

Incorporation under the name of STCL Limited has been obtained with effect from

August 13, 2004.

Objectives

1. To make all out efforts for recovery of the amount due from Business Associates.

2. To pursue the ongoing recovery process through legal recourse.

214

3. To obtain minimum Bank finance, so as to carry out core business in Spices,

agricultural commodities, Fertilizers and pesticides to earn minimum operational

costs.

4. To utilize chilli and other spice processing facilities available with the company

for value addition and to market both in domestic and international markets.

5. To develop core competitiveness in chilli and other spices and explore the

market opportunities in these areas to the best advantage of the Company and to

lay emphasis on quality of services to its Clientele in the long-term business

relationship.

6. To support, protect, maintain, increase and promote production of Indian Spices

and other Agricultural commodities as well as their Sale/Export.

7. To fulfill Company’s social responsibility by following ethical business practices

and reinforcing commitment to customers, employees, partners and

communities.

8. To undertake on a continuous basis training/re-training of existing manpower so

as to create a cadre of highly professional and motivated managers.

9. To become a credible company of international standards of Corporate

governance and offer quality services.

Share Capital

The Share Capital of the company as laid down in its amended Memorandum of

Association is Rs. 5,00,00,000/- (Rupees Five Crores), divided into 5,00,000/- equity

shares of Rs. 100/- each (Five Lakhs equity shares of Rs. One hundred) .The Paid up

215

Share Capital of the Company as on today is Rs. 1,50,00,000/-(Rupees one Crore fifty

lakhs) comprising of 1,50,000 equity shares.

Achievements

During the Financial year 2010-11, the company has achieved a turnover of Rs.57.99

Crores. The Company is estimated to achieve a turnover of Rs.125.69 crores during

2011-12.

Service to Farmers

The presence of STCL in Plantation areas in the State of Karnataka and effects

of distribution of fertilizers, agro chemicals and other inputs manufactured by

reputed companies at competitive prices and thus the farmers interests are not

exploited by the middlemen and traders. The timely supply of fertilizers helped

the farmers in carrying out their fertilizer application/operations on time, which

has boosted their productivity / production.

STCL is regularly conducting cardamom Auctions and due to the good

auctioning practices adopted; the growers are assured of realizing reasonable

price for their produce. The auction practices followed are also benchmark for

other auctioneers.

STCL has established Chilli Processing Plant at Byadagi in Haveri District of

Karnataka and Steam Sterilization Unit at Chindwara, Madhya Pradesh. These

projects help the growers to get remunerative price by value addition for their

produce. These Projects shall achieve the following objectives:

216

i. To encourage farmers to produce organic and conventional spices

(Black pepper and chilli to meet the export demand.

ii. To increase the export share of value added products from India to the

world spice market.

iii. To help farmers to have higher realization.

VI. National Centre for Trade Information (NCTI)

The National Centre for Trade Information (NCTI) was incorporated on 31st March,

1995 as a Company under Section 25 of Companies Act, 1956. The Company started

functioning w.e.f. March 1996. It has a Board of Directors for administration of its

affairs, which includes representatives from Ministry of Commerce & Industry, National

Informatics Centre (NIC), Indian Institute of Foreign Trade (IIFT), and Directorate

General of Commercial Intelligence & Statistics (DGCI&S).

The ITPO and NIC are co-promoters of the Company and have contributed a sum of

Rs.4.00 crore (Rs.2.00 crore each) as Corpus Fund in the equity contribution of the

Company. The ITPO provides fully furnished office space and the NIC provides the

software and hardware against their equity contribution in kind.

The Centre provides value added information in the field of electronic trading

opportunities, live trade leads from World Trade Point Federation (WTPF), trade data

analysis and organize export awareness seminars and update/upload information on

its website. The Centre uploads 52 issues of E-weekly ‘Trade Point-India’ annually on

its website containing approximately 250 Trade Leads each week.

Studies undertaken

ASEAN FTA/PTA Work

India-Chile PTA Work

Study on India’s Bilateral Engagements with Indonesia and Thailand

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Data compilation for the purpose of actual presentation by WTO Sectt. In

respect of Comprehensive Economic Co-operation Agreement between

Malaysia and India

Handicrafts Study for Development Commissioner of Handicrafts under Ministry

of Textiles

Other major activities

• Setting up and Operationalization and Management of Computerized Trade

Information Centre (CTIC) at Dharwad for Visvesvaraya Industrial Trade

Centre, Bangalore

• Electronic Trading Opportunities (ETO) service to APEDA, NSIC and VITC,

Bangalore.

• Trade data support for AEPC

• Trade leads and trade data support to Govt. and Public Sector Organisations

and SMEs etc.

VII. India Trade Promotion Organization (ITPO)

The Trade Fair Authority of India (TFAI) and the Trade Development Authority

(TDA) were merged together in 1992 and the new organization was renamed as India

Trade Promotion Organisation (ITPO). ITPO is the premier trade promotion agency of

India and provides a broad spectrum of services to trade and industry so as to

promote India’s exports. These services include organisation of trade fairs in India

and abroad, Buyer-Seller Meets and Business Meets & Conventions, Contact

Promotion Programmes apart from information dissemination on products and

markets. With its Headquarters at Pragati Maidan, New Delhi and regional offices at

Bangalore, Chennai, Kolkata and Mumbai; ITPO ensures representative participation

of trade and industry from different regions of the country in its events in India and

abroad.

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Financial Highlights During 2011-12, ITPO’s total income would be Rs.287.12 Crore (provisional)

as compared to Rs.305.12 Crore in the previous year while the total expenditure is

anticipated at Rs.196.26 Crore (provisional) as against Rs.234.25 Crore incurred

during the previous year. ITPO is anticipating a surplus of Rs.90.86 Crore

(provisional) during the year 2011-12 as compared to actual surplus of Rs.70.87 Crore

in the previous year.

Fairs in India India Trade Promotion Organization (ITPO) organized specialized events during

2011-12. During the period from 1.4.2011 to 31.12.2011 the following events were

organized:

1. India International Leather Fair, Pragati Maidan, New Delhi.

(July 28-30, 2011)

2. Aahar-the International Food Fair, Chennai

August 25-27, 2011

3. 17th Delhi Book Fair, Pragati Maidan, New Delhi

August 27-Sept. 4, 2011

4. 13th Stationery Fair, Pragati Maidan, New Delhi

August 25-27, 2011

5. 14th International Security Expo, Pragati Maidan, New Delhi

October 12-15, 2011

6. 31st edition of India International Trade Fair (IITF-2011)

(November 14-27, 2011)

Other regular events of ITPO namely India International Leather Fair (January

31 to Feb. 3, 2012) at Chennai, International Leather Goods Fair (Feb. 25-27, 2012) at

Kolkata, Nakshatra (Feb 25 to March 4, 2012), Pragati Maidan, New Delhi, Aahar –

the International Food & Hospitality Fair (March 12-16, 2012), Pragati Maidan, New

Delhi etc. are scheduled to be held during the period January to March 2012.

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India International Leather Fair – Delhi The first edition of India International Leather Fair (IILF), Delhi 2011 was

organized at Pragati Maidan, New Delhi from July 28-30, 2011.

The fair was inaugurated by Shri Rahul Khullar, Commerce Secretary, Govt. of

India

CLE, CLRI, ISF, ICOMA and IFLMEA were the co-organizers of the Fair

A total number of 100 companies participated in the Fair (including 17 from

overseas mainly from Italy and China)

Aahar-the international Food Fair’2011, Chennai Aahar, the international food fair-2011 was organized in Chennai from August

25-27, 2011.

MoFPI, APEDA, ARCHI, NSIC, IFCA and HOTREMAI were the co-organizers of

the fair

The fair was inaugurated by Shri T.N. Ramanathan, IAS, Secretary, Co-

operation, Food & Consumer Protection Department, Govt. of Tamilnadu

A total number of 86 companies participated in an area of 2268 sq. mtrs.

17th Delhi Book Fair, New Delhi

The 17th Delhi Book Fair ‘2011 was organized by ITPO from August 27th to

September 4th, 2011 at Pragati Maidan, New Delhi in Hall No. 8 to 12 & 12-A in

an area of 5400 sq. mtrs. (Net area).

The Federation of Indian Publishers (FIP) was the co-organizer of this event.

10 seminars were conducted during the period of the fair.

Four foreign countries namely USA, China, Pakistan and UK also participated in

the fair.

Stationery Fair Concurrent to Delhi Book Fair ITPO also organized 13th Stationery Fair in Hall

No. 12-A in an area of 770 sq. mtrs. (Net area).

Over 250 companies participated in this twin fair.

14th International Security Expo ITPO organized 14th edition of India International Security Expo, Pragati

Maidan, New Delhi (October 12-15, 2011)

The fair was inaugurated by Shri Jitender Singh, Hon’ble Minister of State,

Ministry of Home Affairs.

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48 companies displayed their products including Home land security, disaster

management & NBC equipment, radio communication system etc.

Foreign delegates and visitors from 14 companies visited the event.

Three seminars were organized during the fair on 13th and 14th October, 2011

by ITPO in association with American Chamber of Commerce, Bhartiya Global

Infomedia Limited and Bureau of Police Research & Development

The fair was visited by 3920 business visitors who registered their names at the

time of entry to the Security Expo.

31st India International Trade Fair’2011 31st edition of ITPO’s popular annual event, the India International Trade Fair

(IITF) was organized in Pragati Maidan, New Delhi from November 14 to 27,

2011 (First five days were exclusively for business visitors).

The fair was inaugurated by Shri Pranab Mukherjee, Hon’ble Minister of

Finance. The Theme of the Fair was -“Indian Handicrafts – The Magic of Gifted

Hands”.

A number of seminars, conferences, workshops, a panorama of cultural

programs and State Day celebrations were also organized at different venues of

Pragati Maidan.

Continental cuisines and regional specialties at different food outlets and Food

Court at Pragati Maidan were among the major attractions for the visitors.

Jharkhand and West Bengal were the Partner States.

Bihar and Orissa were the Focus States.

It was the first that online allotment of space to domestic exhibitors was

introduced successfully. Space rent payment by NEFT and RTGS was

encouraged.

To facilitate the visit of overseas delegates, exclusive International Business

Lounge was operated near Gate No. 7, Pragati Maidan. The facilities provided

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at International Business Lounge include registration of foreign delegates,

foreign exchange counter, Cyber Café.

For convenience of the visitors a Round Robin Bus Service was operated.

Three Hop-on-Hop-off (HOHO) Low floor buses for plying on Round Robin

Route (from 9.00 a.m. to 8.00 p.m.) by Delhi Tourism and Transportation

Development Corporation Ltd. with a route covering Gate No. 1 Via I.P. Metro

Stations ITPO, Pragati Maidan, Metro Station and Pragati Maidan Gates No.

8,7,5,3 & 2.

Elaborate arrangements were made for safety & security of visitors, which

included X-Ray baggage scanners at all entry points, explosive detectors for the

anti-sabotage check, enhanced number of CCTV, observation towers, Walkie-

talkie sets and inverted mirrors, flap-barriers to regulate entry with bard coded

badges, tickets, fire-fighting systems inside all halls as per the requirement of

Delhi Fire Service, emergency lights in case of sudden power failure,

arrangements of standby generators and barrier-free access to the halls.

Park & ride facility was available for the visitors.

Over 6000 exhibitors from India and abroad took part in the event as detailed

below:-

Domestic Participants in IITF 2011 27 States and Union Territories along with exhibiting companies from their

States (each ranging between 50 to 200 exhibitors).

38 Central government Ministries/ Departments along with their Agencies/ PSIs.

They include Ministries of Water Resources, Power, Earth Sciences, Steel

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Railways, Renewable Energy, Social Justice, Health & Family Welfare,

Agriculture, Defence, Rural Development, Department of posts, Income Tax.

Public Sector companies, Export Promotion Councils for Handicrafts and

Commodity Boards and other Government Promotional Organisations including

MTNL, Punjab National Bank, Khadi & Village Industries Commission, National

Small Industries Corporation, National Mission on Bamboo and Housing and

Urban Development Corporation.

CAPART Pavilion of Ministry of Rural Development with 500 Rural Artisan and

Craftsmen from all over India.

298 individual companies including well known names such as, Surya

Pharmaceuticals, TI Cycles, BOSCH, Usha International, Usha Sriram, Wipro

Consumer Care & Lighting, Dabur, Ranbaxy, Singer India, Eureka Forbes,

Dharampal Satyapal, Dhampur Sugar, Simbhavli Sugar, etc.

Foreign Participants in IITF 2011 About 230 Overseas Exhibitors from 26 countries (200 in national pavilions and

about 30 exhibiting independently).

National Pavilions of 16 countries – Afghanistan, Armenia, Azerbaijan,

Bangladesh, Belarus, Canada, China, Cuba, Iran, Kazakhstan, Kyrgyz

Republic, Pakistan, South Africa, Thailand, Uzbekistan, Venezuela.

Display Profile of IITF 2011 Home Electronics, Communications, Building Technology, Jute and Coir, Light

Engineering Goods and Two Wheelers, Automobiles and Auto Parts, Home

Appliances and Kitchenware, Cosmetics, Healthcare and Pharmaceuticals Agro

Products, Processed Food, Textiles and Garments, Flooring and Furnishings,

Stationery, Footwear, Good Living, FMCGs, Products of Small and Medium

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Enterprises, handicrafts, Rural Arts and Crafts, Toys and Games etc.

The special displays were Techmart by NSIC and Buildtech by HUDCO. New Initiatives in IITF 2011 The allotment of space to private sector companies was done electronically.

Potential exhibitors had to apply online for allotment of space and were

encouraged to send booking amount and participation fee through

NEFT/RTGS.

Locations were divided into A, B and C categories, A and B being prominent

locations where first two allotments were made only to companies which get 60

or more weightage points. The weightage criteria included the turnover of the

company, area to be booked and the nature of the company. The objective was

to give prime location to good companies which generally take late decisions.

The display profile was restricted to the product groups identified for each hall.

Hall No. 6 and 18 were kept for foreign and government participation. The

foreign participation and government participation in Hall No. 18 were planned

in a way that government exhibitors could get adequate footfall and visibility

lack of which has been their complaint.

Third Party Fairs Apart from organising trade fairs, the ITPO also leases its facilities in

Pragati Maidan to organisers of trade events. During 2010-11, as many as 59

events were organised in Pragati Maidan by Export Promotion Bodies/Apex Industries

Associations/Central Ministries as well as private fairs organisers. During 2011-12, as

many as 61 events were organised till December, 2011.

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Fairs Abroad Overseas fairs during April-December, 2011 During the year 2011-12, ITPO proposes to organise participation in 27

overseas trade fairs including one multisectoral India show in Mexico &

two Textile sector India shows in Osaka, Japan. Out of 27 events,

ITPO has organised participation in 20 events till now (April-December,

2011)

Out of 20 events held so far, six events were held in Europe, five in

Africa & Middle East, four in Asia, four in America and one in CIS region.

Further, out of 20 events, eight were general fairs, ten were specialised

fairs and two were exclusive Mini India shows.

Proposed overseas fairs during 2012-13 During 2012-13, ITPO proposes to organise 28 overseas trade fairs including

four exclusive India shows and two Mini India Shows.

Brand India Shows India Garment Fair & India Home Furnishing Fair, Japan

During the year, two exclusive Indian commodity shows were organised

in Japan in the month of July, 2011 i.e. the 32nd India Garment Fair and

22nd India Home Furnishing Fair.

The shows for Home Furnishings and Garments are being organised

annually for the last several years, are well established and have

become major sourcing avenues for these products.

The simultaneous organisation of the Shows for Furnishing and

Garments during 2011 provided ample opportunity for buyers and

sellers to conduct business under one roof, not only in terms of Home

Furnishings but also in Garments.

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These two events generated business worth US $ 25.20 million

and were attended by buyers from 2127 leading Deptt. Stores,

Wholesalers, importers, trading houses etc.

Trade Delegations 31 foreign delegations from 40 countries, including USA, Australia, Germany,

Nigeria, South Africa, Japan, Russia visited the India Trade Promotion Organisation.

Few delegations comprised of delegates from different countries from a region or

economic block.

Membership ITPO provided a package of services to export worthy units which are enrolled

as Members. These services include trade enquiries received from Indian Missions

abroad, market reports, details of importers and arranging meetings with visiting

delegations during Trade Fairs & Exhibitions organized by ITPO. This year, till

December 2011 about 600 trade enquiries received from Indian Missions abroad were

disseminated among the members through Trade Intelligence Bulletin enabling them

to explore business opportunities with the overseas counterparts. In addition, trade

information related to overseas tenders and trade fairs & exhibitions organized by

ITPO and overseas agencies are also published in the Indian Export Bulletin.

Networking with TPOs

ITPO has been actively participating in Asian Trade Promotion Forum (ATPF), a

gathering of Trade Promotion Organisations (TPOs) since very beginning. All the

activities of ATPF are coordinated by Japan External Trade Organisation (JETRO).

Under the programme, the working-level meeting with representatives of the TPOs of

the member countries and the meeting of the CEOs of the member organisations is

held annually. The 20th ATPF working level Meet, held at Sendai, Japan from Dec. 8-

9, 2011 was attended by a Senior official of ITPO.

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Export Potential Seminars 28 seminars were organised during IITF 2011 and other trade fairs, in

association with EPCs/Partner State/Focus State/State Governments/Associations.

Keeping in view the theme of Handicrafts in IITF, 3 seminars on (i) Indian Handicrafts:

Challenges in Marketing; (ii) Design and Product Development in the Indian Handicraft

Sector – A Need and (iii) Increasing Competitiveness of Indian Handicrafts: Standards

and Quality Compliance were organised by ITPO in association with EPCH.

Computerisation ITPO is on its way to implement a Comprehensive Organisational

Restructuring and E-Enablement project. The consultant has since given a

blue-print of the proposed organisational restructuring and e-enablement which

has partly been implemented and is under active finalisation stage

A new initiative knowledge management system is to be developed by SD&CS

during current financial year i.e. 2011-12 to adhere to the requirement of MOU.

We have requested NIC for preparing software for knowledge management

system and forwarded project assessment template duly filled in to NIC for

further advice from them.

The present IT infrastructure in ITPO includes about 350 desktop computers,

10 servers, 6 work-stations, attached peripherals and supporting application

softwares which are operational in the networking environment.

Besides facilitating various Divisions in their IT enabled functions on day-to-day

basis, the Computer Department of ITPO has also been facilitating

development, hosting and maintenance of corporate website of ITPO, two

trade portals and fair specific websites. Information technology is also being

used for creating databases of business visitors to ITPO’s domestic fairs

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and disseminating fair specific details to visitors by way of touch screen kiosks in

select ITPO’s domestic fairs.

Trade Information During 2010-11, over 100 titles of periodicals of which 9 prised ones and rest on

gratis basis and about 10 CD-ROMS were added in the Business Information Centre.

Out of these titles (about 1500 issues of these titles), 80 were trade related periodicals

and others non trade related periodicals (i.e. Grah Shobha, Sarita, India Today etc.)

During April-December 2011 over 100 titles of periodicals of which 9 priced

ones and rest on gratis basis as mentioned above and 34 CDs were received in BIC

Library. Besides 40 issues of Indian Export Bulletin were brought out and hosted on

the website up to December 2011. ITPO has 650 live Members as on 31st December,

2011.

Library

During Apil-December, 2011, 159 publications/books (fictions etc.) were added

in the Library.

35 titles of newspapers are also subscribed in the library for distribution

amongst various Divisions/HODs/ED/CMD. The periodicity of the magazines vary

from weekly/fortnightly/monthly to quarterly.

Business Information Centre With a view to provide reliable trade information to Indian exporters and

overseas buyers, the ITPO has set up the Business Information Centre and Trade

Portal www.tradeportalofindia.org at Pragati Maidan. The trade portal was set up by

the Government of India under the EU – India Trade Investment and Development

Programme for promoting trade between India and EU. This provides information on

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the EU countries and covers other countries and regions as well. It also offers

linkages to relevant government websites that provide information access, both off-

line and online, on countries, trade statistics,

market surveys, sector – based information and statistics, country regulations, trade

events, business directory etc. At present this portal contains information on more

than 100 countries including 27 countries of EU.

The Centre provides online access of KOMPASS – (a database of 1.8 million

companies for 82 countries, searchable by country and product, classified by

manufacturer/importer/distributor/agent) to its members.

Setting up of Regional Trade Centres ITPO is providing assistance to State Governments in setting up Regional

Trade Promotion Centres (RTPCs) for creating Export Infrastructure in State

Capital/major cities. The present status is as given below:

1. Tamilnadu Trade Promotion Organisation TNTPO has three AC Halls having area of 4400 sq.mtrs. 1760 sq.mtrs. and

4400 sq.mtrs. respectively. A modern Convention Centre having built up

area of 6672 sq.mtrs. on Ground Floor and 1817 sq.mtrs. on First Floor with

seating capacity of 2000 is also operational since November,2004 in the

Chennai Trade Centre (CTC). CTC is also having 4000 sq.mtrs. open

area for display.

During 2011-12 (1 April, 2011 to 31 December, 2011), 161 events were

organized at Exhibition and Convention Halls of TNTPO. 49 events are

anticipated to be organized at CTC during January – March, 2012.

The important events organized at Chennai Trade Centre include IILF,

Hindu Metro Plus, Tyre Expo, Weld India, Medicall, Acetech, ISNT,

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Gems & Jewellery, Neocon, Automotive testing and Engineering Expo,

Printing Expo, International Sea Food Show.

2. Karnataka Trade Promotion Organisation The Trade Centre at Bangalore was set up in 2004 and is managed by a

Joint Venture Company called Karnataka Trade Promotion Organisation

(KTPO). KTPO is a Joint Venture of ITPO and Karnataka Industrial Area

Development Board (KIADB).

KTPO is having one Exhibition Hall measuring 5371 sq. mtrs. and one

Conference Hall measuring 1500 sq. mtrs.

During 2011-12 (April – December 2011), KTPO hosted 24 events and it is

expected to organize 6 more events during January – March, 2012.

The important events organized at KTPO during April – December, 2011

includes IPCA Expo 2011, SS-12 Range Presentation, All Thai Products,

SAP TechED-2011, The Great Indian October Fest 2011, Bengaluru

Midnight Marathon and Grace Hopper Celebration for Women in Computing

etc.

Commercial Publicity & Public Relations

During the current year, ITPO made extensive publicity arrangement for its

B2B and B2C events through multimedia campaign viz. Print, electronic and

outdoor media in India and overseas. This publicity campaign was

supplemented with brochures, invitation mailers, posters etc. Fair

catalogues were printed for both domestic and overseas events.

ITPO worked in close coordination with the print and electronic media to

ensure meaningful coverage through newspapers, magazines, radio and TV

channels disseminating information for attracting quality visitorship.

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ITPO’s activities and its exhibition infrastructure were highlighted in the

Calendar of Events booklet which also listed ITPO’s programmes of events

in India and abroad over a period of two years. The booklet was mailed to

its target audience comprising trade and industry associations in India and

abroad, overseas missions in India as well as Indian missions abroad and

nodal industry organisations in different States.

ITPO also brought out a quarterly newsletter ‘Log On’ for updates on ITPO’s

activities and events to trade and industry in India and overseas, Central

Ministries and Departments, State Governments,

PSUs, EPCs etc. As part of corporate publicity efforts, advertorials were

brought out in publications/ newspaper supplements in respect of major fairs

while corporate advertisements on major fairs were released in prominent

publications.

Tender Notices pertaining to various matters were also released in various

publications from time to time apart from uploading on ITPO’s website.

Infrastructure

During the year 2011-12 (April-December, 2011), works of creation/upgradation

of facilities in Pragati Maidan undertaken by ITPO are as follows:

Air-conditioning of Hall 15 – Air-conditioning in Hall 15 has been provided.

Upgradation of Fire-fighting system – Fire fighting system has been provided in

Hall 1, 6, 15 & 19 for public security.

Renovation of toilets in Halls 7, 14 & 18 – the toilets of Hall No.7, 14 & 18 have

been renovated.

Comprehensive signages have been provided in Pragati Maidan.

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Business Lounge at Gate 1: At Gate 1, Business Lounge-cum-Seminar facilities

have been created.

International Business Lounge-cum-Trade negotiation meeting rooms: These

are planned to be completed by December’2011 near Gate No.2.

Corporate Social Responsibility ITPO has undertaken a project at the cost of Rs.31.88 lakhs (Civil and electrical

works) for construction of 3 nos. toilet block (one for boys hostel, one for girls hostel

and one for dormitory) in a social welfare institution i.e. Asha Kiran Home, Avantika,

Sector-1, Rohini, Delhi. Tenders have been called by PWD and work will be taken up

soon.

Measures Undertaken for the welfare of SCs/STs/OBCs ITPO follows the Government of India Guidelines issued from time to time for

the welfare of SC/ST/OBCs.

VIII. Export Credit Guarantee Corporation of India Limited (ECGC)

The Export Credit Guarantee Corporation of India Ltd. (ECGC) Mumbai was set up in

1957 under the Companies Act, 1956. It has the primary objective of supporting the

country’s exports by extending Insurance and Guarantee facilities to the Indian

exporters and the commercial banks. The paid up capital at the end of 2010-11 is Rs.

900.00 crores. ECGC has registered itself with the IRDA on 27th September, 2002

bearing Registration No. 124.

There were 13093 short-term policies including transfer guarantees and 51 long term

policies, in force on 31.03.2011. The total value of shipment declared under the

schemes (short-term policies, transfer guarantees and Domestic Credit Insurance)

amounted to Rs.93127.40 crores as compared to Rs.85686.85 crores in 2009-10,

recording a growth of 8.78%.

The total claims paid during the year amounted to Rs. 620.53 crores as compared to

Rs.641.73 crores in the previous year. During the year, a total sum of Rs. 136.06

crores was recovered as compared to Rs. 133.32 crores in the previous year.

The total premium income from all the schemes of ECGC during the year amounted to

Rs.885.47 crores as compared to Rs. 812.33 crores in 2009-10. This premium income

of ECGC mainly comprises of Short Term ECIB Business, accounting for 57.66% of

the total premium income, followed by Short Term Policy sector including factoring,

which contributed 37.68%. The income from medium and long term sector accounted

for just 4.66% (Rs. 41.23 crores) of the total premium income. During the year ECGC

achieved a growth of 8.91%. ECGC has a share of about 90% of the export credit

insurance market in India inspite of competition from the public sector, as well as

private sector insurance companies.

During the year, the Corporation maintained same rates of premium which was

reduced by an average 10% in the previous years, across all sectors of business

despite adverse developments in the major export destination markets due to the onset

of global recession benefiting the export community.

ECGC covers exports to 237 countries. The top five countries covered by ECGC during

the year were USA, UK, Germany, UAE and Italy. They represent about 42.10% of its

total cover. Engineering Goods, Leather and leather manufactures, readymade

garments, Cotton & Handloom and Chemical and allied products are the top five

commodities covered by ECGC during the year. These aggregate to Rs 27217 crores,

representing 47.75% of the total value covered by ECGC during the year. ECGC was

having 10% obligatory reinsurance with GIC of India Ltd.

The Corporation has declared and paid dividend of Rs. 26.10 crores for the year 2010-

11 as compared to Rs. 10.75 crores dividend paid during the previous year.

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ECGC has achieved Very Good rating under its annual Memorandum of

Understanding signed with the Ministry of Commerce & Industry for the year 2010-11.

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