Daily News - Tuesday, 20 May 2025

⁠Indian coffee exports double in value even as production remains flat (mint)

⁠India’s coffee exports have more than doubled over the past decade, rising from $800 million in FY15 to a record $1.81 billion in FY25, despite a marginal increase in production from 344,500 tonnes to just 352,000 tonnes during the same period. The surge in export value, particularly since FY22, reflects India’s improved global branding, market access, and higher coffee prices, with key markets including Italy (18.09%), Germany (11.01%), and Belgium (7.47%). However, challenges persist as domestic consumption tightens export availability, production dropped by 12% this fiscal, and traders face pressure from skyrocketing procurement prices, prompting calls for more direct government support to farmers rather than costly overseas promotions. 

US farmers can offer non-GM soybean products to India: USSEC chief Jim Sutter (The Indian Express)

⁠A potential US-India trade deal could ease long-standing trade tensions, offering Indian poultry producers access to sustainably verified US soy feed and allowing the US to offset trade losses from China by opening new markets, according to USSEC CEO Jim Sutter. Despite India’s regulatory restrictions on genetically modified (GM) products, cited as trade barriers by the USTR, Sutter emphasized that US soy farmers offer both GM and non-GM options, making sustainability and consumer choice the real focus. With buyers reportedly willing to pay 9.7% more for sustainably sourced products, US soy’s sustainability credentials—such as a 34% improvement in soil conservation since 1980 and eligibility for trusted labels like “Sustainable US Soy”—are positioned as a competitive advantage for Indian and global buyers alike. 

Govt allots quota for 180 tonne of gold imports from UAE (Financial Express)

The Indian government has allotted a 180-tonne gold import quota from the UAE at a reduced 5% duty under CEPA for FY26, drawing an overwhelming 2,960 applications—25 times the available quota and a 253% year-on-year surge. Nearly 1,400 applications were rejected, reportedly due to the application of a turnover criterion of ₹25 crore average over the past three years, which traders claim contradicts the DGFT’s June 2023 notice removing this requirement. Only one application per entity was considered, prioritizing those who utilized 80% of their previous quota, while banks, permitted to import gold independently, were excluded from the allocation. 

⁠India mulling stricter rules for foreign owned companies: Report (Financial Express)

⁠The Indian government is set to overhaul its foreign ownership framework by introducing a new category, Foreign Owned and Controlled Entities (FOCE), to bring both direct and indirect foreign investments under the ambit of FDI rules, ensuring tighter regulatory oversight. The proposed changes, nearing finalisation, will require all ownership transfers, including internal restructurings and indirect share sales, to be reported at fair market value and comply with sectoral FDI caps. Aimed at closing loopholes, especially to curb indirect Chinese investments, the move seeks to prevent circumvention of India’s FDI policy through layered domestic entities or offshore funds.

UK FTA: India may leave Pakistan, Türkiye behind in textile exports (Business Standard)

⁠India’s proposed Free Trade Agreement (FTA) with the UK, expected to take effect in 2026, will eliminate the current 8–12% import duties on Indian apparel and home textiles, positioning India to surpass Pakistan and Turkey as the UK’s third-largest textile supplier. With a current market share of 6.6% ($1.4 billion in 2024) compared to China (25%), Bangladesh (22%), Turkey (8%), and Pakistan (6.8%), the FTA will give India parity with duty-free competitors and is projected to double export volumes within 5–6 years. ICRA forecasts a 13% CAGR in exports to the UK, reaching $3.2 billion by 2029, with the UK’s share in India’s textile exports expected to rise to 11–13% by 2027, boosting employment and industry earnings through expanded garmenting capacity.