India, Australia witnessed 'enormous deepening and diversification' of cooperation, says Jaishankar
Addressing an event at the Australian High Commission to mark the fifth anniversary of India-Australia Comprehensive Strategic Partnership, he also said the reason behind this 'dosti' has actually been the 'strong leadership that we have seen from both countries'.
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Indian Express
an hour ago
- Indian Express
Why these two agri industries are wary about India-US trade deal
Even as India and the United States work towards finalising a bilateral trade deal – ahead of a looming July 9 deadline for the reimposition of President Donald Trump's so-called reciprocal tariffs – at least two major domestic agricultural-based industries are worried about the possible concessions that a deal might entail. The sugar industry, for one, is against allowing imports of ethanol for use in blending with petrol. The mills aren't also very keen on import of genetically modified (GM) maize/corn as a feedstock for fuel ethanol. The US is the world's top producer as well as exporter of both maize and fuel ethanol. The second is the soyabean processing industry. The Indore-based Soybean Processors Association of India (SOPA) has vehemently opposed imports of soyabean. The US is the second biggest producer and exporter of this leguminous oilseed after Brazil. Both countries mostly grow GM soyabean. Given the US' high stakes in these commodities – and the geopolitical imperative to find a sizeable alternative market to China – there's significant pressure on India to remove restrictions on their imports. But any such opening up in the India-US trade deal could encounter resistance from the two well-established agro-processing industries. What sugar millers fear The ethanol-blended petrol programme has been a success story of the Narendra Modi-led government. Chart 1 shows that the average blending of ethanol in petrol sold by oil marketing companies (OMC) has risen from just 1.5% in 2013-14 to 14.6% in 2023-24. In the current supply year, from November 2024 till May 2025, the cumulative all-India average blending ratio was 18.8%, close to the target of 20% by 2025-26. But the industry's concerns are over the feedstock used for ethanol production. Till 2017-18, the entire ethanol for blending in petrol came from molasses, the leftover dark syrup after extraction of sugar crystals from cane juice. From 2018-19, the mills-cum-distilleries also began using cereal grains (mainly broken or old rice unfit for human consumption) as feedstock. Since 2023-24, the ethanol supplies from grain-based feedstock, particularly maize, has overtaken that from sugarcane molasses and whole juice (Chart 2). For the 2024-25 supply year, a total 1,047.9 crore litres of ethanol have been contracted or made available to OMCs. Out of that, 710.4 crore litres or nearly 68% is from grain-based feedstock, including 483.9 crore litres from maize, 119 crore litres from the Food Corporation of India's surplus rice and 107.5 crore litres from damaged/broken grains. Only the balance 337.5 crore litres are from molasses (144.7 crore litres) and sugarcane juice (192.8 crore litres). 'As it is, sugarcane is being marginalised as a feedstock. It would be worse with imports of maize or even ethanol itself,' says a miller from Uttar Pradesh. According to him, the industry was already facing the prospect of stagnant, if not declining, domestic sugar consumption: 'Our future isn't sugar, but energy. Today, it is 20% ethanol-blended petrol. Tomorrow, it may be 5% blending in diesel or ethanol being converted through additional processing into sustainable aviation fuel producing lower carbon emissions compared to petroleum jet fuel'. Ethanol from sugarcane, the miller claims, will not create any major 'fuel versus food and feed' dilemma. 'Sugar consumption won't increase much in India, unlike milk, egg and chicken that need maize as the key feed ingredient. The diversion of maize for biofuel will cause huge demand-supply imbalances and shortage of grain for livestock and poultry,' he adds. The US exported a record 1,914 million gallons (724.5 crore litres) of ethanol, valued at $4.3 billion, in 2024. India was its third largest market (after Canada and the United Kingdom), at 187 million gallons (70.8 crore litres) worth $441.3 million. India permits import of ethanol only under licence for industrial (non-fuel) purposes and restricted to 'actual users': Imports can be for manufacture of alcohol-based chemicals, but not for blending in petrol or diesel. A recent NITI Aayog working paper has suggested that India import GM maize as a feedstock for ethanol production. The protein-rich byproduct from it – DDGS or distiller's dried grains with solubles – may be entirely exported without getting consumed as a GM feed ingredient within the country. 'US corn is cheaper and can be used to meet India's biofuel targets without disrupting local food and feed markets,' the paper – authored by NITI Aayog member, Ramesh Chand, and senior adviser, Raka Saxena – has stated. The NITI Aayog paper has also called for exploring the option of importing soyabean, with the oil extracted from it being sold in the domestic market and the residual de-oiled cake or meal (which contains GM protein matter) exported to other countries. SOPA's executive director, DN Pathak, counters this proposal. 'Most of our solvent extraction plants are in the interiors (especially Madhya Pradesh and Maharashtra) where the crop is grown. It's not feasible for them to bring imported soyabean from the ports, process it and then take back the meal for exports. The freight cost economics will simply not work. And what will happen to the 7 million-odd farmers cultivating soyabean here?,' he asks. Indian processors crush 11-12 million tonnes (mt) of soyabean annually to produce 9-9.5 mt of meal. Out of that, 7-7.5 mt is domestically consumed as feed and food ingredient and the rest 2 mt or so exported. This is way below the 105-110 mt that China crushes every year. Much of that soyabean is imported to meet the feed requirement of its humungous swine herd and poultry flock: China is home to roughly half of the world's pig population and a fifth of its chickens. 'We don't have this kind of domestic market for soyabean meal. Also, if the GM meal cannot be sold within the country, the processing plants will have to be nearer to the ports for exports. The ones more likely to put up these are the international commodity trading giants such as AWL Agri Business (formerly Adani Wilmar), Archer Daniels Midland, Bunge, Cargill and Louis Dreyfus,' explained Pathak. SOPA has also voiced concern at the Centre's decision, on May 30, to slash the effective import tariff on crude soyabean, palm and sunflower oil from 27.5% to 16.5%. That will further squeeze the margins of domestic processors, 'as they will have to compete with lower-priced imported oils, forcing them to operate below break-even capacity or shut down altogether'. Soyabean is now trading in MP and Maharashtra's mandis at Rs 4,300-4,350 per quintal, as against its official minimum support price of Rs 5,328. A surge in imports, whether of oil or seed, can lead to farmers switching acreage to other crops. These worries may to come to the fore, as the ongoing trade talks between India and US edge closer to fruition. Harish Damodaran is National Rural Affairs & Agriculture Editor of The Indian Express. A journalist with over 33 years of experience in agri-business and macroeconomic policy reporting and analysis, he has previously worked with the Press Trust of India (1991-94) and The Hindu Business Line (1994-2014). ... Read More
Time of India
2 hours ago
- Time of India
Canberra supports US attack on Iranian nuclear sites, pushes for dialogue
Australia has backed US strikes on Iranian nuclear sites to prevent Tehran from acquiring nuclear weapons. At the same time, calling for urgent de-escalation and a return to diplomacy. After several days of escalations, the US launched strikes on three Iranian nuclear facilities on Sunday (AEST). President Donald Trump stated, 'There will be peace, or there will be tragedy for Iran.' Foreign Minister Penny Wong confirmed the support on Monday. She said the world must act to prevent Iran from acquiring nuclear weapons. A UN watchdog recently found Iran had enriched uranium close to weapons-grade. Senator Wong also said Australia had not received any request for military help and was told that the joint US-Australian base at Pine Gap was not involved. She said this was a dangerous moment. Foreign Minister Penny Wong has urged all parties to prioritise diplomacy and dialogue to prevent a 'full-scale war' in the Middle East. Live Events The National Security Committee will meet in Canberra on Monday to discuss the situation. Australia's backing goes further than that of allies like the UK, Canada, and New Zealand, which have stopped short of directly supporting the strike. Liberal Senator and former Australian ambassador to Israel, Dave Sharma, called the initial response "underwhelming" but said support for the strikes was the right move. However, the Greens strongly opposed the strikes. Senator David Shoebridge said military action would only harm civilians and branded Donald Trump a "warmonger". Former Australian ambassador to Iran Paul Foley said the government's stand was appropriate. But he warned that tensions could rise, depending on Iran's next move. Options for Iran include not responding, launching a limited strike, or attacking US targets. Foley said diplomacy is still possible if both sides are serious. About 2,900 Australians in Iran and 1,300 in Israel have registered to leave. Australia has officials at the border to help citizens exit Iran. Airspace is closed, and Wong warned that leaving is risky but advised it if possible. The UK, France, Germany, and Italy urged Iran not to escalate. Canada and New Zealand echoed calls for diplomacy.
Indian Express
4 hours ago
- Indian Express
Hervé Delphin at Idea Exchange: ‘EU-India is not just a relationship, it's become a tangible commodity'
Hervé Delphin, EU Ambassador to India, on how the EU-India partnership has made global ties more compelling and where Russia-Ukraine and Israel-Iran conflicts are headed. The session was moderated by Shubhajit Roy, Diplomatic Editor, The Indian Express. Shubhajit Roy: In the context of India-EU relationship, how do you see the journey of two-and-a-half decades? The EU and India have had a long journey. We established relations in 1962 and in 2004, we formally established a strategic partnership. At the time, the world was rather flat, now it's a different environment. We are today the largest trading bloc and partner of India. It's close to $200 billion in goods and services. We've been converging in our assessment of security, as well. The Indo-Pacific and the Indian Ocean are cases in point. We also have been converging people to people. Last year, there were about over 1 million visa applications of Indians to Europe, with an approval rate of 85 per cent. You also have an expanded footprint of European companies in India, about 6,000. Likewise, you've got more Indian companies investing in Europe. So what I see is this multi-layered relationship. The EU College of Commissioners visit in February helped to break the last hesitations that may have been there on both sides. Can we really trust each other? You know that in politics, even though you advance your relations, trust is the rarest commodity. So, we are now in what I would call a year cycle. If you consider that the College visit was the starting point, the end point will be the EU-India Summit in Delhi in about a year. The EU and India together represent 25 per cent of world GDP and 25 per cent of world population. It sends out a message to the rest of the world that we are two partners invested in looking at the world through the lens of cooperative engagement and cooperative multipolarism. It's not just a relationship, it's become a tangible commodity. Shubhajit Roy: One of the key elements that the two sides decided to work on was defence and security partnerships. What are the next steps going forward? The key pillars of this new strategic agenda are trade and economy, security and defence, technology, mobility and global partnerships, including connectivity. Arguably, security and defence were not so much in the landscape a few years ago. But, now we are a continent at war. There is an aggressor that decided to launch a war of choice on a sovereign country which is really a European neighbour. And that sent shockwaves through our system. In security and defence, the EU collectively has increased its expenditures by 30 per cent, between 2021 and 2024. Now it's about $350 billion. Looking at strategic and defence partnerships, the authorisation to have one with India is on the table of the Council and we are confident that will be authorised. This is what I call the political pathway. Shubhajit Roy: The Trade and Technology Council (TTC) is a new mechanism between India and the EU. Is there a possibility of technological transfer or partnership? If FTA (free trade agreement) is the game changer in terms of creating the environment, TTC is the upscaler. What the College visit to India has meant is a sharper focus on certain key supply chains, semiconductors, AI, space and biotech. Arguably, some of them are dual use. But what we are working on with India is really on the civilian part. The EU has a 300 billion plan called Invest AI and we are keen to develop cooperation. The human-centred approach of AI resonates quite well with the EU approach. We have differences, but I think there is a norm. Shubhajit Roy: What are the differences? It has to do with the ecosystem. It's the way you sort of leverage your own champions, the way you develop your ecosystem. We probably have a similar concern that big tech defines the rules of the game. But harnessing the different elements of our respective ecosystems and understanding the kind of protocols we are developing is interesting. Shubhajit Roy: On the FTA, how close or far are India and EU from concluding this particular agreement? This is the only way to bring the two economic constituencies together. It would, probably, be the largest-ever FTA India will conclude. For the EU, it's more or less the same. Since we are at different levels of development, the complexity of the negotiation is significant. There is so much determination on both sides to have it done. Just look at the pace of negotiating rounds. The next one is on July 7 in Brussels. Shubhajit Roy: The UK has beaten the EU on the FTA with India. The US is saying it will conclude it within the next month or so, before July 9. Is the EU lagging behind? Is it a race? Honestly, I prefer to be slower but bring larger goodies than being fast and having a small bag. What is important is not about being fast and furious, but resolute and substantial, for both constituencies. Europeans are not necessarily the sexiest or the most fun, but we are steady. We are reliable, we are predictable, and these days, these kinds of qualities have a higher value than before. So indeed, we may be a bit slower, we are a bit bureaucratic, we are not shining, but at the end of the day, we deliver. And all the FTAs we have signed have delivered positively for both sides. We are not in a zero-sum game, we are in a positive-sum game. And that is characteristic of our FTAs. On Israel-Iran conflict | Israel has a right to protect itself. That they have taken this rather dramatic action is serious. The only way to bring us away from the brink is the diplomatic track. But the onus is on Iran Shubhajit Roy: How confident are you that the US negotiations will lead to an agreement between Russia and Ukraine to end the war? The EU has made its position very clear. We support President (Donald) Trump's efforts for a ceasefire. But what has become abundantly clear is that Russia is stalling and is not engaging seriously and earnestly in any peace arrangement. They want to stay. For us, this is in blatant violation of the UN charter and it represents a threat to our security interests. So, if there is a serious peace process that is in place, we will engage. And, of course, we want the Ukrainians to be part. This is where the initiative of President Trump has created a space. But what we've seen in the last month is that Russia doesn't come to the table or comes to the table with deflecting arguments. We will continue to support peace efforts and Ukraine's right to defend itself. There's 135 billion Euro worth of assistance that have been channelled towards Ukraine, micro-financial assistance, humanitarian aid, military assistance. We will continue to try to degrade the war economy of Russia. We had the 18th package that has just been presented. And we believe that these sanctions are biting. Rakesh Sinha: You are well-versed in Middle Eastern affairs. Where is the Iran-Israel conflict headed? The sober lesson for anyone working with the Middle East is: It's always the same, but every time it's getting worse. This is really bringing us to the brink. The EU is also part of the JCPOA (Joint Comprehensive Plan of Action), an agreement that offered a framework to address the single-most concerning issue of Iran developing a nuclear programme for military purposes. Sadly, Iran has not used that framework to ensure its compliance with the International Atomic Energy Agency, with the Non-Proliferation Treaty, and has shown no respect for the benchmarks that have been set. It's Iran who closed the door on diplomacy and put itself in this situation. Now, clearly, the window for diplomacy has narrowed. It doesn't mean that this should not be tried. The EU statement, at G7, was clear that Iran has to get back to the negotiating table. Israel took action. This is a fact. We have stated very clearly that Israel has a right to protect itself. That they have taken this rather dramatic action is serious. The only way to bring us away from the brink is the diplomatic track. But the onus is on Iran. Ravi Dutta Mishra: Under the EU's 18th sanctions package on Russia, Europe has decided to stop importing refined Russian petroleum via third countries. India exported over $20 billion worth of refined petroleum to the EU in FY24. What is your take on India-EU relations in light of these sanctions? When the EU decided to take action against Russia through sanctions, they were designed to minimise the impact on fuel, fertilisers, and food. We wanted the sanctions to affect Russia, not others. That's why we imposed a price cap on oil rather than a ban. India is a net importer of oil, and we never blamed India for importing Russian crude. However, when it comes to refined products derived from Russian crude oil, perhaps, economic operators acted opportunistically. But from the EU's perspective, our policy has always been clear: we will not import Russian oil, whether crude or refined. These sanctions are not directed against India; they are part of a blanket policy. Those who made money during these years — good for them — but this opportunity will no longer exist. Ravi Dutta Mishra: Europe and Indian negotiators are talking about carbon tax. Will there be a middle ground? I have come to discover that Carbon Border Adjustment Mechanism (CBAM) is one of the most-known acronyms in India. First, CBAM is not a trade measure. It is not part of trade and FTA. It's about compliance with our climate agenda to accelerate decarbonisation. It applies to our European economic actors. This is a societal and political choice of the EU. If you want to do business in Europe, you cannot import carbon. On Russia-Ukraine conflict | We support President Trump's efforts for a ceasefire. But what is clear is that Russia is stalling and is not engaging seriously and earnestly in any peace arrangement. They want to stay We reached out to Indian businesses last year, to medium and small enterprises. They will now have what they called a mass volume. Instead of going through every single transaction, it'll be treated in bulk. You have a sort of mass, 50 tons of carbon, when you are below that, you don't do anything. We also heard that Indian businesses see decarbonisation as the way forward. No one wants to be stuck in a high-carbon content industry because it's a story of the past, it's not the story of the future. What you see in India is actually a very bullish approach with technological solutions that will help decarbonisation. Nikhil Ghanekar: A few weeks ago, Commerce minister (Piyush) Goyal spoke about a retaliatory tariff to this non-barrier tariff. Would you like to weigh in on what he said on CBAM, that he won't accept it and there will be retaliation? The EU will not carry out exceptions for anyone. On one end, we have the FTA and on the other end, we have CBAM, an instrument of acceleration of decarbonisation. We are truly impressed by what India is doing in decarbonising its economy and its industry. Not any people realise the kind of challenges India is facing in ramping up and developing its economy while at the same time decarbonising. The leader of a big cement company in India was explaining to me how he's developing or importing a technology to ensure that his cement will have 60 per cent less carbon content. I'm quite confident that India will embrace the path of decarbonisation and it will do great. Rinku Ghosh: You are looking to expand your trade volume with India and make it an alternative supply chain. China is one of your biggest trade partners, so are their anxieties about the India-China dynamic? China is one of our largest trade partners. But it's a trade which runs with over $300 billion deficit. And that is a cause of concern for the EU, the same way India has over $100 billion trade deficit with China. So we're engaging and expecting concrete deeds from China to rebalance the market distortion. The second talking point with China is its support to Russia in the war. We are telling them that it cannot be business as usual if these two things are not addressed. In parallel, we are in the business of increasing diversification because every shock we have faced in the past has shown that whether Covid or wars or China, it is not a good policy to be over-dependent on one single provider. This is also a positive element in the EU-India equation. If India can ramp up the production of photovoltaic panels, of legacy microchips at competitive prices, the world will be better for everyone. Saptarshi Basak: Why does the West not hold Netanyahu to the same standard as Vladimir Putin? As Ambassador, I can only stand by the statements that have been made by the EU. We have not condoned or encouraged these strikes. The fact that Israel, on its own, has decided to strike Iran and precisely because of the consequential nature of these strikes, makes the case for diplomacy even more compelling. This is the single-most important objective today. It's not about qualifying the actions of one or the other, it's really to bring diplomacy on track. On India-EU FTA I prefer to be slower but bring larger goodies than being fast and having a small bag. All the FTAs we have signed have delivered positively for both sides. We are in a positive-sum game Arjun Sengupta: What do you think of the situation in Gaza? Is Europe in some way complicit with Israel's actions? The concerns expressed by the EU regarding the plight of the Palestinian population in the Gaza Strip, is clear, which is repeatedly engaging with Israel, directly discussing with the US to ask Israel to be compliant with international humanitarian law. There is a Foreign Affairs Council shortly, where there will be a review on whether Israel has been compliant with international law. At this point in time, what I can say for sure is that the dramatic developments in Gaza have been fully registered, and for the first time, the question of the suspension of the association agreement between the EU and Israel is on the table, but the first step is the review of evidence. Shubhajit Roy: On the India-Pakistan tensions last month, how concerned were you then and now about any possible sort of escalation in future? On the EU side, there is an understanding of Operation Sindoor as a consequence to the act of terror, of abject attack on civilians. And the way this terror attack was conducted, it was not just to take lives but to inflict pain and create ground for polarisation. The EU recognises India's right to defend itself and are engaging to bring the parties to a ceasefire. We are not in the business of mediation. We are passing on the message that the risk of escalation has to be considered. Now it's for the two parties to engage, to find ways to bring the situation to a level of stability that can benefit not only the two countries but also the region. We have relations with India which are profound, dense, strategic and forward-looking. We also have relations with Pakistan which are certainly not on the same level. We just had a dialogue with Pakistan on non-proliferation, on security and are engaging with them in the fight against terrorism.
