PR No – 128
30th July, 2024
New Delhi
New FTP Policy focuses on collaboration and e-commerce growth, discusses Mr. Gangadhar Panda, Additional DGFT (CLA), Ministry of Commerce & Industry at PHDCCI’s FMCG Fast Fact Meet
While addressing the FMCG Fast Fact Meet organized by PHDCCI today at the PHD House, New Delhi, Mr. Gangadhar Panda, Additional DGFT (CLA), Ministry of Commerce & Industry said that DGFT facilitates foreign trade and a policy is perfect only when it reflects the field’s realities. He stated that as the government holds the responsibility to protect the interests of exporters and in April 2023, the government decided with the FTP scheme to keep it a continuous process, allowing for tweaks in the second round without waiting five years for changes.
Further, Mr. Panda highlighted the main objectives of the new FTP 2023 policy, which include shifting the focus from incentives to remission, enhancing collaboration with stakeholders including state governments and industries, and emphasizing the potential of e-commerce exports, as the budget has also proposed the setup of an e-commerce hub.
He further mentioned that the FMCG industry is significant with substantial exposure, and discussed various schemes like the UCG Scheme and IGST Scheme. He also addressed the challenges at the legal and regulatory levels and emphasized on the need for robust protection. Mr. Panda also spoke about market and product manufacturing challenges and the need for international cooperation and stressed the importance of strengthening the Certificate of Country of Origin and improving customs checks, including incorporating blockchain technology for product tracking.
Dr. Ranjeet Mehta, Executive Director, PHDCCI, thanked DGFT for addressing FMCG industry issues and highlighted the significant export potential of the growing food processing industry. He discussed that India is one of the fastest-growing economies with a 7% improvement in recent years.
Dr. Mehta further emphasized the need for new access to export markets and praised the government for its proactive approach. He also emphasised the goal of building an export-led economy, aiming for $2 trillion in exports by 2030.
Mr. Harsh Gursahani, Partner – Food Law & International Trade, PLR Chambers started his address by expressing happiness that India and its products are being recognized worldwide. He identified intellectual property as an important issue to discuss, noting that Western countries like the EU have proper IP regimes. He informed that DGFT is cracking down on merchandise exporters to declare the manufacturer. He also discussed SIP-related issues and sanitary permits, and highlighted that India does not allow dairy imports from the US and China until it has potential to check melanin content and level.
He added, these issues have been addressed in multiple FTAs and further emphasized on the need for constructive agreements to identify tariff lines to be opened and urged DGFT to ensure EIC is equipped with relevant standards for exports.
Mr Sumit Agarwal, ITC Limited discussed on the blanket restrictions on dairy products from countries like the EU and Australia, and emphasised on the need for certification of individual batch quality inspection and data checking. He also discussed about the tariff and non-tariff restrictions by Indonesia on Indian products and related cumbersome processes, and HSN classification issues with Thailand.
Mr. Shalley Goel, Vice president – International Business & Corporate Strategy, Bikanervala – Bikano Group discussed the issue of parallel exports and the challenges of credibility with channel partners who do not follow compliance processes.
He discussed that bypassing formal channels leads to credibility loss and consumer confusion due to cheaper product availability and suggested of setting up a system to trace products back with government support, including penalties for non-compliance.
Mr. Himalaya Koul, Head – Food Safety & Product Development, KRBL Limited discussed on larger challenges faced by the industry and emphasized the need for an authority letter from the brand, as original manufacturers might not export to certain countries. He highlighted regulatory and standards issues, the hunting of counterfeit products, and the problem of consumer loss due to brand promise violations. He noted that Europe is a safe haven for such issues, and this need addressing.
The meet focused on discussing issues related to parallel exports, brand value erosion, and supply chain disruptions. With this, the PHDCCI aims to further enrich the dialogue on solutions and advocacy for these challenges and will present recommendations to the government to address them effectively.
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Warm Regards,
Media Division
PHD Chamber of Commerce and Industry