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Mumbai: India’s shrimp export volume is expected to fall by 15–18% in the current fiscal year following a sharp increase in tariffs imposed by the United States, according to a report released by Crisil Ratings. The new tariff rate of 58.26%, which includes countervailing and anti-dumping duties, came into effect on August 27, 2025, and has rendered exports to the US market economically unviable for most Indian processors.
The US accounted for nearly 48% of India’s $5 billion shrimp exports in fiscal 2025, making it the largest destination for Indian seafood. Crisil Ratings noted that while exporters had anticipated the tariff hike and front-loaded shipments in the first quarter, overall revenues are still projected to decline by 18–20% year-on-year. The inability to pass on the increased costs to buyers has led to a projected erosion of operating profit margins by 150–200 basis points, pushing margins to a decade-low of 5.0–5.5%.
Rahul Guha, senior director, Crisil Ratings, said the tariff shock would have cascading effects across the value chain as the headwinds will impact processors and discourage farmers from continuing to invest in shrimp culture. “Farmers incur upfront costs for land lease, seed and feed. Additionally, investments in equipment for aeration, electricity and overall pond management and biosecurity have substantially raised the production cost. To boot, the risk of diseases, reduced harvests and unprofitable global prices have been forcing farmers to look at alternative cultures that entail lower investments and limited risks,” he said.
The report highlights that India’s competitive position has weakened significantly compared to other major shrimp-exporting countries such as Ecuador, Vietnam, Indonesia and Thailand, which face substantially lower tariffs in the US market. Despite India’s well-developed domestic infrastructure and strong distribution networks in the US, the steep tariff hike has tilted the playing field.
Crisil Ratings analysed 63 shrimp exporters, representing approximately 55% of industry revenues, and found that their credit profiles are likely to deteriorate. Interest coverage ratios are expected to moderate to around 3.3 times this fiscal from 4.8 times last year, reflecting the pressure on profitability. Himank Sharma, director, Crisil Ratings, noted that the credit profiles of shrimp exporters focused on the US market will face further challenges after two sluggish years.
The decline in export volume is also expected to reduce capacity utilisation and shrink sales of value-added and large-sized shrimp, which were primarily destined for the US and commanded higher margins. While working capital debt may ease due to lower business volumes, the overall debt protection metrics are set to weaken.
Indian shrimp processors are understood to be exploring alternative markets such as the United Kingdom – aided by the India–UK free trade agreement – as well as China and Russia. These efforts may provide partial relief in the second half of the fiscal year, but are unlikely to fully offset the loss of US-bound shipments.
Responding to the mounting trade challenges, the Indian government has launched a strategic initiative to bolster the domestic shrimp market. A dedicated committee has reportedly been formed under the National Fisheries Development Board (NFDB) to chart a roadmap for building a resilient local ecosystem for shrimp consumption. This multi-stakeholder body comprises representatives from farming communities, feed manufacturers, and the Marine Product Export Development Authority (MPEDA), which plays a key role in export market development.
As part of this initiative, efforts are underway to raise public awareness about the nutritional benefits of shrimp. Proposals include setting up promotional stalls across key urban centres to educate consumers and encourage greater uptake. With India’s per capita shrimp consumption currently lagging behind countries like Japan, there is considerable scope to expand domestic demand.
To bridge this gap and cushion the impact of recent export disruptions, shrimp producers have proposed a range of innovative solutions. These include pioneering methods for transporting live shrimp without water and establishing interactive experience centres to engage and inform consumers.
Developing a strong domestic market is increasingly seen as essential for ensuring fair returns to producers and reducing dependence on unpredictable global trade dynamics. Expanding internal demand would also give Indian consumers access to premium-quality shrimp, much of which has traditionally been reserved for export.
The long-term viability of shrimp farming will depend not only on diversifying export destinations but also on significantly boosting domestic consumption. With the sector at a critical juncture, both processors and farmers must adapt to a more uncertain global trade environment while tapping into the untapped potential of the Indian consumer base.
(Write to us at editorial@bombaychamber.com)
Mumbai: The food processing sector in India is seeing steady traction among micro enterprises, with over 1.44 lakh units approved for support under the PM Formalisation of Micro Food Processing Enterprises (PMFME) scheme as of 30 June 2025. The scheme, administered by the Ministry of Food Processing Industries, is centrally sponsored and demand-driven — allowing eligible applicants across states to seek financial, technical and business support without regional restrictions.
The PMFME scheme offers a credit-linked capital subsidy of 35% of the eligible project cost, capped at ₹10 lakh per unit. This support is targeted at individual micro enterprises seeking to upgrade or set up food processing operations. The scheme is part of a broader effort to accelerate micro, small and medium enterprises (MSME) growth in the sector, alongside the Pradhan Mantri Kisan SAMPADA Yojana (PMKSY) and the Production Linked Incentive Scheme for Food Processing Industry (PLISFPI), both of which also include MSME participation.
Training and capacity building form a significant component of the PMFME programme. As of the latest update, over 1.16 lakh beneficiaries have received skilling support under the scheme. This includes entrepreneurship development, product-specific training, and support for district-level resource persons and trainers. The aim is to equip micro operators with the skills required to meet industry standards and improve operational efficiency.
The scheme’s demand-led structure has enabled wide geographic coverage. In Bihar, for instance, 25,349 proposals have been approved under PMFME, in addition to 13 projects under PMKSY and seven under PLISFPI. The figures reflect the scheme’s reach across both high-growth and underserved regions, with approvals based on applicant readiness rather than location.
The government’s approach to food processing sector development appears to prioritise decentralised growth, with MSMEs positioned as key drivers of employment and value addition. By offering targeted incentives and skilling support, the PMFME scheme seeks to formalise and scale micro operations that have traditionally operated outside the organised sector.
(Write to us at editorial@bombaychamber.com)
Mumbai: India’s battery recycling ecosystem is undergoing a structural shift, with the government initiating steps to integrate informal operators into the formal value chain. The Ministry of Environment, Forest and Climate Change (MoEF&CC) has stated that the Extended Producer Responsibility (EPR) framework under the Battery Waste Management Rules, 2022 is designed to incentivise formalisation by linking revenue generation to certified recycling activity. This includes the exchange of EPR certificates between producers and registered recyclers — a mechanism that excludes unregistered entities and encourages them to enter the formal system.
To support this transition, a dedicated project has been launched under the Micro & Small Enterprises Cluster Development Programme (MSE-CDP) of the Ministry of Micro, Small and Medium Enterprises. The initiative aims to build capacity and upgrade informal sector operations by forming recycling clusters, thereby enabling small-scale recyclers to access technology, infrastructure and formal market linkages. The programme is expected to reduce fragmentation in the sector and improve traceability of recycled materials, particularly in the context of lithium-ion batteries.
Technology transfer is a key component of the formalisation effort. The Centre for Materials for Electronics Technology (C-MET) has developed a cost-effective lithium-ion battery recycling process, which has been transferred to several recycling firms and start-ups. This move is aligned with the government’s broader circularity goals under Mission LiFE and is intended to improve domestic recovery of critical minerals while reducing dependence on imported raw materials.
The EPR portal developed by the ministry has registered over 3,600 producers and 442 recyclers to date. Producers have procured EPR certificates for 7.29 lakh metric tonnes of key battery metals, against a target of 10.96 lakh metric tonnes. Only certificates issued by registered recyclers are recognised under the rules, reinforcing the need for informal operators to formalise in order to participate in the regulated trade of recycled materials.
The formalisation push is also expected to complement the Production Linked Incentive (PLI) scheme for Advanced Chemistry Cell (ACC) battery storage, which has attracted significant investment in domestic cell manufacturing. With over 100-Gigawatt hour (GWh) of additional capacity announced beyond the PLI beneficiaries, the demand for recycled inputs is likely to rise — making the integration of informal recyclers into certified clusters both a commercial and regulatory imperative.
(Write to us at editorial@bombaychamber.com)
Mumbai: India’s textile industry is set to benefit from a temporary exemption of customs duties on raw cotton imports, effective from 19 August to 30 September 2025. The move, announced by the Central Board of Indirect Taxes and Customs, removes the 5% Basic Customs Duty, the 5% Agriculture Infrastructure and Development Cess, and the 10% Social Welfare Surcharge previously levied on cotton imports. In total, the waiver eliminates an 11% import duty, offering immediate cost relief to manufacturers across the textile value chain.
The exemption is expected to ease pressure on domestic cotton prices, which have remained elevated due to supply constraints and seasonal volatility. By allowing duty-free imports, the government aims to improve raw cotton availability, reduce input costs, and stabilise prices for downstream products such as yarn, fabric, garments, and made-ups. This is particularly significant for small and medium enterprises (SMEs), which form the backbone of India’s textile ecosystem and are more exposed to fluctuations in raw material costs.
The timing of the waiver is critical. With export competitiveness under strain and inflationary pressures affecting consumer demand, the cost reduction could help manufacturers maintain margins and pricing stability. Lower input costs may also support India’s textile exports, which face stiff competition from countries with more favourable sourcing and duty regimes.
Industry associations have long called for the removal of import duties on cotton, citing the need to align domestic policy with global trade realities. The current exemption responds directly to these concerns, albeit for a limited duration. While the measure is temporary, it signals a willingness to intervene in support of a sector that contributes significantly to employment and foreign exchange earnings. Beneficiaries of the move include spinning mills, fabric producers, garment exporters, and ancillary units that rely on cotton as a primary input. The relief is expected to be most pronounced for SMEs operating in high-volume, low-margin segments, where even modest cost reductions can have a meaningful impact on viability.
The exemption also has implications for price transmission across the supply chain. If cotton prices soften as expected, consumers may see more stable prices for finished textile products, particularly in the domestic market. However, the short duration of the waiver means that its long-term impact will depend on subsequent policy decisions and market responses. The government’s decision reflects a balancing act between protecting domestic producers and ensuring affordability and competitiveness. While cotton farmers may be concerned about the potential impact on domestic prices, the exemption is framed as a short-term measure to address immediate supply and cost challenges.
As the textile sector navigates global headwinds and domestic constraints, the customs duty waiver offers a window of relief. Whether it translates into sustained gains will depend on how quickly manufacturers can leverage the cost advantage and whether the government considers extending or institutionalising similar measures in future.
(Write to us at editorial@bombaychamber.com)
Mumbai: India has rolled out a series of targeted measures to boost exports and reinforce domestic manufacturing, with a clear focus on MSME participation and sectoral competitiveness. The initiatives span production-linked incentives, logistics reforms, trade agreements and grassroots export hubs — forming a multi-pronged strategy to position India as a global supply chain player.
A key highlight is the Production Linked Incentive (PLI) scheme, now extended across 14 sectors including electronics, pharmaceuticals, auto components and solar modules. These incentives have led to increased output, job creation and a marked rise in exports. In the medical devices segment alone, 21 projects have begun manufacturing 54 high-end products such as MRI machines, heart valves and CT scanners. In electronics, India has transitioned from being a net importer to a net exporter of mobile phones, with exports rising from ₹1,500 crore in 2014–15 to over ₹2 lakh crore in 2024–25. The country is now the world’s second-largest mobile phone manufacturer.
The pharmaceutical sector has also seen strong gains. Under the PLI scheme, cumulative sales have reached ₹2.66 lakh crore, including ₹1.70 lakh crore in exports over three years. India has reversed its trade position in bulk drugs, moving from a net importer status in FY 2021–22 to a net exporter, with a swing of over ₹4,000 crore.
To support these manufacturing gains, the government has launched the National Logistics Policy and PM Gati Shakti initiative. These aim to streamline the movement of goods, reduce costs and improve coordination across transport networks. The PM Gati Shakti National Master Plan is central to developing multimodal infrastructure, ensuring faster transit and better resource utilisation. Complementing this is the National Industrial Corridor Development Programme, which seeks to build globally competitive manufacturing hubs with strong connectivity to domestic and international markets.
Grassroots initiatives are also being scaled up. The Districts as Export Hubs (DEH) programme has identified export-ready products and services across 590 districts, with action plans addressing supply chain bottlenecks and proposing targeted interventions. Institutional mechanisms such as State Export Promotion Committees and District Export Promotion Committees have been set up to drive implementation.
In parallel, the E-Commerce Export Hubs (ECEH) initiative is being piloted to support SMEs and artisans in cross-border trade. These hubs will offer integrated services including customs clearance, packaging, quality certification and warehousing — all at a single location. Five pilot projects have been proposed, with the Directorate General of Foreign Trade inviting detailed submissions.
On the trade diplomacy front, India signed the Comprehensive Economic and Trade Agreement (CETA) with the United Kingdom on 24 July 2025, marking a significant step in expanding market access. Talks with the European Union are ongoing, with a deal expected by year-end. These agreements are expected to open new avenues for Indian exporters, particularly MSMEs, in sectors such as textiles, pharmaceuticals, and electronics.
Together, these measures reflect a strategic shift in India’s trade and industrial policy — one that blends top-down infrastructure planning with bottom-up export enablement. The emphasis on manufacturing depth, logistics efficiency and market diversification is designed to reduce import dependency and build long-term resilience in India’s export ecosystem.
(Write to us at editorial@bombaychamber.com)
Mumbai, 8 August 2025 – The Bombay Chamber of Commerce and Industry hosted the Insurance Summit 2025 at the Taj Santacruz, Mumbai, under the theme “Viksit Bharat – Catalysing Insurance for a Resilient Future”. The summit brought together prominent figures from the insurance and reinsurance sectors, policymakers, technology leaders, and financial services experts to explore how insurance can drive inclusive growth and contribute to national development.
Delivering the welcome address, Sandeep Khosla, Director General of the Bombay Chamber, reflected on the Chamber’s 189-year legacy as one of India’s oldest industry bodies. He spoke about its role as a trusted bridge between industry and the government, facilitating dialogue, influencing policy, and supporting sectors in navigating emerging opportunities and challenges.
Setting the context, Praveen Vashishta, Member of the BFSI Committee, Bombay Chamber, Former Co-founder of Howden Insurance Brokers India, and Chairman of Howden Asia, set the tone with a Theme Setting Address that examined the evolving dynamics of the sector and the opportunities on the horizon. His remarks provided a compelling context for the discussions that would follow. He emphasised that achieving Viksit Bharat requires insurance penetration to grow at a pace matching the country’s economic ambitions, highlighting the urgency of closing the protection gap across health, agriculture, climate risk, and infrastructure. He spoke about the twin challenge of under-insurance and low awareness, urging a shift from product-centric to customer-centric models, supported by technology and data-led innovation. Stressing that resilience must be built into the very fabric of India’s development, he called for collaborative action among insurers, regulators, technology providers, and government to create scalable, inclusive, and affordable insurance solutions that reach every citizen.
In his Keynote Address, Nilesh Sathe, Former Whole-time Member of IRDAI, reflected on the transformative potential of technology, artificial intelligence, and micro-insurance, and urged the sector to strengthen public-private partnerships in flagship schemes such as PM Jan Arogya Yojana and PM Fasal Bima Yojana. He underscored the need to embrace insurance as a national mission on the path to Viksit Bharat, stressing that climate risk is also a financial risk.
Girija Subramanian, CMD of New India Assurance, shared her vision in a Special Guest Address on Bridging the Protection Gap: Pathways to Inclusion. She emphasised the pressing need to widen access to insurance, noting that nearly half the vehicles on Indian roads remain uninsured, and called for innovative approaches to expand coverage and strengthen resilience.
Gayathri Parthasarathy, India Financial Services Sector Leader and Global Financial Services Technology Leader, PwC India, spoke about the ongoing digital transformation in financial services, highlighting its critical role in building resilience and driving growth.
The event also featured the launch of the PwC Position Paper on Agentic Automation in Insurance, presented by Amit Roy, Partner and Leader – Insurance & Allied Businesses, PwC India, and Mahesh Parab, Partner – Agentic Automation, PwC India. They outlined how autonomous AI agents are transforming operational efficiency, customer engagement, and risk management.
The day progressed with three engaging panel discussions. The first, moderated by Amit Roy, explored the opportunities and implications of the proposed amendments to the Insurance Bill 2025, with contributions from Girija Subramanian, Alok Rungta, MD & CEO of Generali Central Life Insurance and Shanai Ghosh, MD & CEO of Zuno General Insurance. The second panel, led by Praveen Vashishta, examined how the industry can become more customer-centric, featuring insights from Dr. Sandeep Dadia, CEO & Country Head, Asia Board Member, Lockton, India; S. K. Rustagi, CEO of Beacon Insurance Brokers Pvt. Ltd.; and Gaurav Dubey, Founder & CEO of Livlong 365. The third discussion, chaired by Vivek Belgavi, Partner – Financial Services Advisory Leader, PwC India, focused on tech-driven innovation, inclusion, and trust, with perspectives from Sandeep Kedia, CFO of Aditya Birla Health Insurance; Suhail Ghai, Chief Digital Officer & Head of Customer Operations, Axis Max Life; Gaurav Sharma, Deputy General Manager at New India Assurance; and Jitender Bahri, Head of P&C Solutions Operations at Swiss Re.
The summit was supported by Knowledge Partner PwC, Media Partner Business Standard, and sponsors including New India Assurance as Title Sponsor, Premium Sponsors Lockton and Axis Max Life Insurance, and Co-Sponsors Livlong 365, Beacon Insurance Brokers, and Aditya Birla Health Insurance.
The event concluded with a Vote of Thanks by Sandeep Khosla.
Industry leaders and policymakers outline strategies for sustainable, inclusive growth
Mumbai, August 8, 2025: The Bombay Chamber of Commerce & Industry hosted its flagship Infrastructure Conclave, “Uddishta Pathway to a $1 Trillion Sustainable Maharashtra”, convening a distinguished line-up of leaders from business, policy, and academia to discuss the state’s roadmap to a $1 trillion economy.
Delivering the welcome address, Sudhanshu Vats, Sr. Vice President, Bombay Chamber, set the tone by underlining the Chamber’s commitment to fostering dialogue between industry leaders, policymakers, and stakeholders. “Maharashtra has always been a frontrunner in India’s growth story,” he remarked, “and it is through platforms like this that we can align visions and actions for sustained progress.”
The opening session, “Powerhouses Behind Maharashtra’s Growth”, was moderated by Dr. Ajit Ranade, Senior Fellow at the Pune International Centre, Economist, and member of the Maharashtra Economic Advisory Council. Dr. Ranade stressed that “Mumbai carries the economic burden of the entire state, and skilling and education will be key to inclusive, sustainable and fast economic growth.”
Dhiraj Relli, Managing Director & Chief Executive Officer, HDFC Securities Ltd., observed that “part ownership is now viable, and alternative asset classes are becoming increasingly attractive for investors with instincts for capital appreciation and safety.” He underscored that the $1 trillion target is not a question of if but when, adding, “Implementation is key—we need to unleash the animal spirit through innovation across all sectors.”
From the tourism and hospitality perspective, Puneet Chhatwal, Managing Director & Chief Executive Officer, The Indian Hotels Company Limited, called tourism “one of the brightest opportunities India has been sitting on for a very long time.” He advocated for mission-mode development of destinations such as Sindhudurg as an alternative to Goa and stressed the need to target both business and leisure travellers. “International tourists are as important as domestic,” he said.
Real estate veteran Dr. Niranjan Hiranandani, Managing Director, Hiranandani Group, said that the One trillion goal will happen, while highlighting the need to redevelop all of Mumbai’s slums into affordable housing, address a shortage of two million skilled workers in the sector, and grant infrastructure status to real estate. “We must address small problems like last-mile connectivity when we talk about the big picture,” he added.
Ashish Pherwani, Partner – Media & Entertainment, EY India, pointed out that “India hosts just 1,000 events a year, but we should be doing 1,000 a month,” emphasising the growth potential of the events and entertainment ecosystem.
Avinash Joshi, Chief Executive Officer – India, NTT DATA, called for a shift in perspective, stating, “IT must lead business, not just enable it.”
The second session, “Driving MMR’s Growth Through Strategic Infrastructure Development”, was moderated by Sachin Kalbag, Editor-in-Chief, Mid-Day. Dr. Sanjay Mukherjee, IAS, Metropolitan Commissioner, Mumbai Metropolitan Region Development Authority (MMRDA), outlined MMRDA’s partnership with NITI Aayog, identifying eight policy shifts and seven growth drivers, and securing $40 billion in FDI commitments at Davos. “The key to success is making it simple—breaking down big plans into small, actionable steps. The path towards the trillion-dollar economy has already begun,” he said.
Shri. Rajiv Jalota, Retd. IAS, Former Chairperson, Mumbai Port Authority (MbPA), urged rapid utilisation of Maharashtra’s 300 km coastline and busy inland waterways. He proposed the development of multiple coastal hubs for tourism, logistics, and sector-specific industries such as textiles and automobiles, along with a dedicated state cell for cruise tourism.
Dr. Shirish Sankhe, Director and Founding Partner, ISEG Foundation, stressed that for India to get into the growth trajectory, the GDP growth will have to be raised from 6% to 9–10%, would require “doing things differently.” He also advocated for circular economy models, a climate action plan, and increasing green cover.
Shrinath Rao, Co-Chairman, Power and Infrastructure Committee, Bombay Chamber; Senior Vice President and Head – Special Assignments, L&T Transportation Infrastructure Business, Larsen & Toubro Limited, identified challenges such as lengthy approvals, land acquisition, and utility relocation. He recommended “a single-window clearance system and all due clearances before launch,” along with strong accountability and timely financing to ensure quality, sustainable project delivery.
Prabhat Mahapatra, Chief Operating Officer, Navi Mumbai International Airport, said the new facility would become “the region’s growth engine,” with a projected capacity of 90 million passengers—up from the original plan for 60 million. “Earlier, Mumbai’s limited capacity cost us the No. 1 spot to Delhi. Navi Mumbai will help us reclaim it,” he said.
Amit Kekare, Chairman of the Power and Infrastructure Committee at the Bombay Chamber and Vice President – Head of eMobility at Siemens, concluded the session by highlighting how Maharashtra’s key growth drivers contribute to this milestone, with particular emphasis on strategic infrastructure development, robust financial regulation, and the effective implementation of government initiatives.
Mumbai: India is looking to replicate the pro-MSME provisions seen in its recent trade agreement with the United Kingdom across upcoming deals with countries including the United States and the European Union. The aim is to create more favourable terms for Indian micro, small, and medium enterprises (MSMEs) and ensure these businesses are better positioned to compete globally.
The recent India-UK Comprehensive Economic and Trade Agreement marked a significant milestone with its dedicated chapter for MSMEs, featuring several support mechanisms. Among these are mutual contact points for MSME-related queries, simplified sharing of regulatory and certification information, and coordinated efforts to promote trade activities such as exhibitions and business networking events.
Under public procurement terms, UK suppliers bidding for Indian contracts will be classified as ‘Class-II local suppliers’ above set thresholds, whereas Indian firms, including MSMEs, retain ‘Class-I’ status, preserving their competitive edge in domestic tenders. Additionally, a technical framework has been established to help MSMEs overcome non-tariff barriers that often hinder access to international markets.
This structured support is viewed as critical for labour-intensive sectors such as textiles, footwear, leather, marine products, toys, sports goods, and jewellery – all of which depend heavily on MSME contribution. These industries have experienced a decline in export share in recent years, reinforcing the need for enhanced access to global markets. Efforts to boost these sectors are also expected to generate positive spillover effects in terms of employment and rural development.
Looking ahead, India is actively trying to incorporate similar MSME carve-outs in ongoing trade negotiations. This approach reflects a broader policy goal of ensuring trade agreements do not disproportionately benefit large firms at the expense of smaller businesses. With talks underway with key partners, there is a concerted push to include practical tools such as training modules, export readiness workshops, and joint promotion of women-led and rural MSMEs.
The Indian government is also pursuing greater collaboration in areas such as sustainability standards and technical skills development, hoping to improve the international competitiveness of domestic MSMEs. By standardising such provisions across multiple trade deals, India is attempting to build a consistent and supportive global framework for its small business sector.
As global trade dynamics evolve, India’s strategic emphasis on MSMEs signals an intent to shape agreements that not only expand market access but also strengthen the foundations of its manufacturing and export ecosystems. While challenges remain, especially with ongoing negotiations, the recent UK agreement is seen as a blueprint for future deals.
(Write to us at editorial@bombaychamber.com)
Organic Certification under National Programme for Organic Production (NPOP) involves a third-party certification, is recognized by European Commission and Switzerland at crop level: APEDA
The National Programme for Organic Production (NPOP) was launched in 2001 by the Department of Commerce, Ministry of Commerce & Industry, Govt of India for exports of Organic products and APEDA acts as the Secretariat for the implementation of the NPOP. The system of grower group certification was launched in 2005, as it was felt necessary to cater to small and marginal farmers.
Third party certification is a mandatory requirement for export of organic products. The NPOP standards for crop production have been recognized by the European Commission and Switzerland as equivalent to their country’s standards and are also accepted by Great Britain. There is an MRA for organic products with Taiwan.
The system for Organic Certification under NPOP involves a third-party certification system of organic processes and organic produce, which is certified across the supply chain by a certification body (Govt. or private). The accredited Certification Bodies certify organic operators as per their scope of accreditation. At present, there are 37 active Certification Bodies operating in India, which include 14 State Certification Bodies.
Herein, it is clarified that APEDA or the Department of Commerce does not extend any subsidy to farmers taking up Organic cultivation under the NPOP. The figure of Rs. 50,000 per hectare and the further wrongly imputed calculations have no basis.
Organic certification under NPOP is not limited only to Madhya Pradesh but is spread across 31 States/UTs. As per latest records (as on 19.07.2025), there are 4712 active Organic grower groups covering around 19,29,243 farmers certified by the accredited certification bodies under NPOP. These grower groups are involved in production of a wide range of crops including cereals, pulses, oilseeds, tea, coffee, spices and not only cotton.
Thus, the number of Organic grower groups as mentioned in the briefing is incorrect along with the number of farmers, it is also misleading to infer that all the Organic grower groups of India are based in Madhya Pradesh and are producing only Cotton.
It is pertinent to mention that cotton is covered under NPOP only till production level. Thereafter, the post production including ginning, processing etc is done under private certification.
Under NPOP, ICS can be self-managed or managed through a service provider/mandator. As per the NPOP standards, it is mandatory for ICS to carry out internal inspections of all farmers twice annually. Apart from that, the Certification Body (CB) conducts annual audit of each ICS which includes Office audit and farm audits based on a sampling plan. The sampling plan is primarily based on the size of the holdings, number of farmers in the ICS and risk assessment. Certification bodies can carry additional inspections wherever deemed necessary.
In addition to the above, there is a third level of check on the CB by the NAB through APEDA, by undertaking unannounced audits of operators including grower groups (ICS) based on risk assessment/ complaints received, which is conducted by an evaluation committee constituted by the NAB and coordinated by APEDA.
Despite the above stated checks and balances established in the system, there have been reported incidences of malpractices and misuse of Grower Group Certification. These kinds of non-compliances are not unique to India or NPOP but apply to any regulatory system. In this regard the following actions have been taken by the authorities:
APEDA is committed to ensure that the Organic certification system under the NPOP is credible, transparent and clear. Wherever credible evidence of non compliances/ wilful violation of organic standards have been brought to light, APEDA had undertaken extensive investigation and taken concrete measures. All such matters are subjected to structured investigation following principles of natural justice. Any Certification Body or operator found violating norms is penalized as per NPOP regulation.
It may be mentioned that in a press briefing by an opposition leader yesterday, unfounded, unsubstantiated and misleading aspersions are being cast against the Organic Certification programme, the National Programme of Organic Production(NPOP).
Generalised allegations against a robust regulatory system of the Country for a particular crop/ region/ group of operators only serve to undermine the credibility of legitimate regulatory institutions and the broader organic movement in India.
The Department of Promotion of Industry and Internal Trade (DPIIT), Ministry of Commerce and Industry Initiative “One District, One Product” (ODOP) aims at fostering balanced regional development across all districts of the country by selection, branding, and promoting one product from each district of the country. The ODOP Initiative aims at attracting investment in the district and boosting manufacturing and exports, thereby generating employment in the district. ODOP is operationally merged with the “Districts as Export Hubs” initiative.
The Developing Districts as Export Hubs (DEH) initiative is a flagship export promotion initiative of Director General of Foreign Trade (DGFT), with the vision to transform every district into a vibrant contributor to national exports. It builds upon and now incorporates the One District One Product (ODOP) initiative to streamline export potential at the grassroots level. Each district identifies one or more products or services with export potential and creates a District Export Action Plan (DEAP) to support quality, capacity, market access, and infrastructure. A District Export Promotion Committee (DEPC), led by local administration in partnership with DGFT regional authorities, oversees execution. State-level Export Promotion Committees support coordination across districts and the DGFT implements and monitors via a national portal. ODOP products are promoted at international events through engagement with Indian Missions abroad.
The Government facilitates participation of Micro, Small and Medium Enterprises (MSMEs) in International Trade Fairs through the International Co-operation Scheme of the Ministry. The scheme aims to build Capacity of MSMEs for entering export market by facilitating their participation in international exhibitions/ fairs/conferences/ seminar/buyer-seller meets abroad as well as providing them with actionable market-intelligence and reimbursement of various costs involved in export of goods and services. The Scheme provides opportunities to MSMEs to continuously update themselves to meet the challenges emerging out of changes in technology, changes in demand, and emergence of new markets.
The components of training in digital marketing and e-commerce are embedded in schemes like Procurement and Marketing Support and MSME Trade Enablement and Marketing (MSME TEAM) schemes of the Ministry of MSME. Government provides financial incentives/concessions through schemes like Prime Ministers Employment Generation Programme, PM Vishwakarma, Procurement and Marketing Support, International Cooperation, Khadi Gramodyog Vikas Yojana, Coir Vikas Yojana etc, for enterprise creation, capacity building, tool kits, etc. Through the Credit Gaurantee Fund Trust (CGTMSE), Government provides guarantee cover for Micro and Small Enterprises (MSEs), with increased cover for women owned enterprises.
This information was given by the Minister of State for Micro, Small and Medium Enterprises, Smt. Sushri Shobha Karandlaje, in a written reply in the Rajya Sabha today.
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