SHEFEXIL · 2020. 11. 16. · Page 1 of 54 SHEFEXIL i) Export/Import data for 10 years along with analysis of export trend Panel 2009- 10 2010- 11 2011- 12 2012- 13 2013- 14 2014-

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SHEFEXIL

i) Export/Import data for 10 years along with analysis of export trend

Panel 2009- 10

2010- 11

2011- 12

2012- 13

2013- 14

2014- 15

2015- 16

2016- 17

2017- 18

2018 - 19

VALUE IN US $ MILLION

Vegetable Saps & Extracts

310.68 407.73 661.44 947.11 846.49 734.18 673.89 663.50 781.67 992.46

Guar Gum 240.70 624.07 3354.83 3919.23 1979.63 1551.86 496.57 463.35 646.94 674.88

Plant and Plant Portion

117.39

141.18

174.37

231.65

216.65

261.84

274.14

289.07

330.18

319.77

Fixed Vegetable Oil, Cake & Others

60.16 52.94 60.56 67.41 61.82 75.82 79.92 70.79 71.35 76.78

Shellac & Lac Based Products

23.21 44.64 72.04 89.49 95.02 53.06 38.50 30.86 34.15 38.43

Other Vegetable Materials

50.77 74.43 51.96 60.61 58.93 59.86 66.08 67.79 52.92 54.23

Total 802.91 1344.99 4375.20 5315.50 3258.54 2736.62 1629.10 1585.36 1917.21 2156.55

Panel 2009- 10

2010-11 2011- 12

2012-13 2013-14 2014-15 2015- 16

2016- 17

2017- 18

2018 – 19

QUANTITY IN MT


93029.66 95377.71 129837.17 148523.77 148523.77 135967.04 112190.38 122630.24 130399.68 125189.44

Guar Gum

441607.68 707326.43 406311.73 601961.53 601961.53 665097.72 325250.71 419948.19 494101.27 513211.87


92448.66 90464.25 108763.01 105570.37 105570.37 116382.69 117761.86 98028.31 107366.31 114375.06


209653.84 137587.86 101235.53 77478.06 77478.06 87808.64 88575.87 83838.27 77449.99 73093.98


6339.05 6858.21 4233.53 8140.20 8140.20 6569.18 7668.42 7240.78 6889.48 8225.39


60167.12 64421.49 101332.56 103024.43 103024.43 109345.28 107390.97 94350.89 78397.36 95770.60

Total 903246.00 1102035.95 851713.53 1044698.36 1044698.36 1121170.55 758838.21 826036.68 894604.09 929866.34

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Panel 2009- 10

2010- 11

2011- 12

2012- 13

2013- 14

2014- 15

2015- 16

2016- 17

2017- 18

2018 – 19

% GROWTH IN VALUE


-17.79 31.24 62.23 43.19 -10.62 -13.27 -8.21 -1.54 17.81 26.91

Guar Gum

-18.18 159.27 437.57 16.82 -49.49 -21.61 -68.00 -6.69 39.62 4.32


-15.51 20.27 23.51 32.85 -6.48 20.86 4.70 5.45 14.22 -3.15


-11.79 -12.00 14.39 11.31 -8.29 22.65 5.41 -11.42 0.79 6.97


-15.17 92.33 61.38 24.22 6.18 -44.16 -27.44 -19.83 10.64 12.55


66.40 46.60 -30.19 16.65 -2.77 1.58 10.39 2.59 -21.94 1.76

Total -14.32 67.51 225.30 21.49 -38.70 -16.02 -40.47 -2.68 20.93 12.42

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Panel wise trend analysis of export of SHEFEXIL products.

1. Export trend in Vegetable Saps & Extracts:

(Source: DGCI&S Kolkata, Ministry of Commerce - http://commerce- app.gov.in/eidb/default.asp)

• Export of Vegetable Saps & Extracts is highest in the Financial Year (FY) 2018-19

(USD 992.46 Million) as compared to other years.

• The highest growth of exports in the said panel was recorded in the FY 2011-12

i.e. 62.23% as compared to the FY 2010-11.

• There was continuous decline in the growth of exports after FY 2012-13 till FY

2016-17. However, in the FY 2017-18 exports have picked up and in the year

2018-19 export of Vegetable Saps & Extracts are highest among all other

years.

310.68

407.73

661.44

947.11

846.49

734.18673.89 663.5

781.67

992.46

0

200

400

600

800

1000

1200

2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19

Vegetable Saps & ExtractsValues in USD Million

http://commerce-app.gov.in/eidb/default.asphttp://commerce-app.gov.in/eidb/default.asp

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2. Export trend in Guar Gum:


• There is an upward trend in the export of Guar Gum from FY 2010-11 to FY 2012-

13.

• There is declining trend in the export of Guar Gum after FY 2012-13 till FY 2016-

17.

• Export of Guar Gum is highest in the FY 2012-13 (i.e. 3919.23 USD Million) as

compared to other years.

• The highest growth of exports was recorded in the FY 2011-12 i.e. 437.57% in value terms.

• Exports have increased by 4.32% in the FY 2018-19 as compared to FY 2017-18 in value terms.

240.7

624.07

3354.83

3919.23

1979.63

1551.86

496.57

463.35

646.94 674.88

0

500

1000

1500

2000

2500

3000

3500

4000

4500

2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19

Guar GumValues in USD Million


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3. Export trend in Plant and Plant Portion:


• There is an upward trend in the export of Plant & Plant Portion from FY 2009-10

to FY 2012-13 and also from FY 2013-14 to FY 2017-18.

• The highest growth of exports is recorded in the FY 2012-13 i.e. 32.85%.

• Compound Annual Growth Rate (CAGR) of exports in the past five years is 4.07%.

117.39

141.18

174.37

231.65

216.65

261.84

274.14289.07

330.18

319.77

0

50

100

150

200

250

300

350

2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19

Plant & Plant PortionValues in USD Million


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4. Export trend in Fixed Vegetable Oil, Cake & Others:


• Export of Fixed Vegetable Oil, Cake & Others is highest in the FY 2015-16 (i.e.

USD 79.92 Million).

• The highest growth of exports is recorded in the FY 2014-15 i.e. 22.65%.

• CAGR of exports in the past 5 years is 0.25%.

• Exports show volatile trend. Export has decreased in the years 2010-11, 2013-

14 and 2016-17, whereas, it has increased in the years 2011-12, 2012-13, 2014-

15 and 2015-16.

60.16

52.94

60.56

67.41

61.82 75.82

79.92

70.79

71.35

76.78

0

10

20

30

40

50

60

70

80

90

2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19

Fixed Vegetable Oil Cake & OthersValues in USD Million


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5. Export trend in Shellac & Lac Based Products:

(Source: DGCI&S Kolkata, Ministry of Commerce - http://commerce-

app.gov.in/eidb/default.asp)

• There is an upward trend in the exports of Shellac & Lac Based Products from FY

2009-10 to FY 2013-14.

• The highest value of exports was recorded in the FY 2013-14 i.e. 95.02 UDS

Million.

• The highest growth of exports was recorded in the FY 2010-11 i.e. 92.33%.

• There is declining trend in the exports after FY 2013-14 till FY 2016-17.

23.21

44.64

72.04

89.4995.02

53.06

38.530.86 34.15

38.43

0

10

20

30

40

50

60

70

80

90

100

2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19

Shellac and Lac Based ProductsValues in USD Million


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6. Export trend in Other Vegetable Materials:


• There is an upward trend in the exports from FY from FY 2013-14 till FY 2016-

17.

• Export of Other Vegetable Materials is highest in the FY 2010-11 i.e. USD 74.43

Million.

• The highest growth of exports was recorded in the FY 2009-10 i.e. 66.40%.

• The exports have increased by 2.47% in the FY 2018-19 as compared to FY 2017-

18.

50.77

74.43

51.96

60.61 58.93 59.8666.08 67.79

52.9254.23

0

10

20

30

40

50

60

70

80

2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19

Other Vegetable MaterialsValues in USD Million


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ii) Major 20 Countries of export / import.

India’s top 20 Countries of Import

Sl. No Name of Countries 2017-18

Values in USD Million

2018-19 Values in

USD Million

2017-18 Quantity in thousands


1 U ARAB EMTS 55.17 246.15 960.61 2228.51 2 AFGHANISTAN TIS 111.33 116.40 5728.46 5746.09 3 CHINA P RP 92.24 62.26 30399.70 34717.55 4 INDONESIA 25.60 41.27 23894.80 24817.45 5 U S A 21.09 27.05 1143.55 1706.57 6 SINGAPORE 1.12 25.24 594.10 1267.37 7 NEPAL 15.51 17.60 19032.25 17802.95 8 GERMANY 6.70 10.77 313.22 718.29 9 SUDAN 9.53 10.43 13995.22 13263.13

10 MADAGASCAR 12.16 9.96 1462.66 1349.82 11 VIETNAM SOC REP 10.03 9.50 14892.73 20530.07 12 BANGLADESH PR 0.70 8.87 757.80 8999.85 13 AUSTRALIA 5.62 8.77 626.37 1033.88 14 BRAZIL 6.02 7.22 486.50 670.06 15 FRANCE 5.99 6.87 1174.04 769.96 16 ITALY 12.88 6.31 5789.76 1355.89 17 THAILAND 6.18 6.01 4346.54 4061.25 18 NETHERLAND 5.07 5.91 848.62 1268.45 19 SRI LANKA DSR 7.03 5.57 1710.68 1612.67 20 MALI 11.44 5.20 11864.04 6382.52

(Source: DGCI&S Kolkata, Ministry of Commerce - http://commerce-

app.gov.in/eidb/default.asp)


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India’s top 20 Countries of Export

Sl. No Name of Countries 2017-18 Values in

USD Million

2018-19 Values in

USD Million



1 U S A 745.97 694.16 257019.94 214566.99 2 CHINA P RP 121.53 174.80 76093.10 120697.73 3 IRAN 85.62 150.13 5154.58 5918.84 4 GERMANY 124.98 118.05 37983.53 38945.95 5 HONG KONG 26.11 105.97 511.07 16080.11 6 NETHERLAND 47.15 58.33 34397.79 47954.59 7 SINGAPORE 18.98 56.55 1799.54 2496.62 8 JAPAN 54.91 56.19 24776.71 22410.86 9 RUSSIA 45.89 55.15 26105.24 28828.79

10 U K 53.36 53.87 25688.49 27492.02 11 NORWAY 46.30 45.65 82965.47 74459.48 12 ITALY 39.90 44.21 15196.44 19655.09 13 FRANCE 33.59 40.50 5905.93 7121.68 14 KOREA RP 30.81 32.94 24064.09 24518.64 15 VIETNAM SOC REP 31.05 32.90 29454.01 21213.75 16 AUSTRALIA 26.83 29.19 7729.64 8091.28 17 BANGLADESH PR 20.57 26.20 32075.23 28945.33 18 U ARAB EMTS 23.19 23.45 12929.93 10744.27 19 PAKISTAN IR 21.90 21.91 9148.14 11095.36 20 ARGENTINA 14.71 21.32 8842.04 11022.10

(Source: DGCI&S Kolkata, Ministry of Commerce - http://commerce-app.gov.in/eidb/default.asp

http://commerce-app.gov.in/eidb/default.asp

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iii) List of Product Panels & membership based for each Panel region-wise. –

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iv) Export strategy prepared by Councils

KEY RESULT AREAS (KRA’s) in preparing Export Strategy to ensure minimum

growth @ 15% in exports in FY 2019-20

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KRA’s for SHEFEXIL

Guar Gum

➢ Product Development

• Derivatized Guar for use of Guar in Cement, Paint , Cosmetics, etc like Hydroxypropyl Guar , Carboxymethyl Hydroxypropyl Guar , Hydoxypropyltrimonium Chloride Guar

• Need to associate with a high quality Research organization

• To spearhead the Product Development goals of the Council for this product

• Research to support use of Guar Gum ( E412 ) in food for infants below 16 weeks of age in response to Call for data by EFSA, EU

➢ Negotiate for inclusion of India as a legitimate source of Guar meal in China

➢ Guar Meal – Revision of Classification of Guar Meal

• The current classification, Guar meal is classified under Chapter 1106, specifically item code 11061010

• In our considered opinion, it should fall under Chapter 23.02

• Chapter 23.02 reads: Bran, sharps and other residues, whether or not in the form of pellets, derived from the sifting, milling or other working of cereals or of leguminous plants.

• Due to wrong classification of Guar Meal i.e. under 1106 10, the said product attracts 4.2% duty in EU, whereas, under HS code 2302 50 the duty rate is 1.60% in EU. Hence, classification of Guar Meal under HS code 1106 10 makes our product costly in EU.

Shellac

• Toxicity data for Shellac (E 904)

• In response to EU /EFSA call for Data for revaluation of Shellac as food additive

• This will help to increase the export of shellac and other lac products to EU countries.

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Plant and Plant Portion (Herbs)

Research/Field work to increase export of medicinal plants (Herbs):

• Engagement of a knowledge partner like Research and Information System for Developing Countries (RIS), Lodhi Road, New Delhi to be associated with this task force as a knowledge agency to carry out the required research/field work to help the Task Forces prepare its recommendations.

(Background: A Task Force constituted by Deptt. of Commerce for tapping potential for exports of medicinal plants/herbs. The Task Force has so far in its preliminary exercise identified 25 medicinal plants, which can be exploited for exports.)

• However, as per revised proposal of RIS, study will be carried on 8 medicinal plants which includes the following:

1. Turmeric ( Curcuma Longa ) for North east

2. Ginger ( Zingiber Officinale ) for North east

3. Moringa ( Moringa Oleifera)

4. Tulsi (Ocimum tenuiflorum)

5. Marigold / Lutein ( Tagetes erecta)

6. Vinca Rosea (Catharanthus roseus)

7. Ashwagandha (Withinia Somnifera)

8. Boswellia Serrata

Vegetable Saps & Extracts & other Vegetable materials

➢ Creation of separate panel for Nutraceutical products:

• Work with Ministry of Commerce and DGFT to create separate HSN code structure for all Nutraceutical ingredients and formulations.

• Connect international agencies like IADSA, CODEX, NPA and CRN.

• Inclusion of Nutra products under reduced import duties in focus markets.

• Create awareness of Indian capabilities in new geographies like Africa, Eastern Europe and Latin America.

• Simplifying and standardizing Indian regulations, in alignment with Global regulations.

• This all will help to increase the export of Nutraceutical products from India.

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North Eastern Region

• Study proposal: Rapid assessment of Bamboo sector in India ( Production, trade, market trends & opportunities ) and feasibility of setting up Bamboo Tech Park in NER

• Proceed for Safe Guard Duty against Bamboo to be used as Incense sticks from Vietnam and China in order to boost domestic Bamboo Industry

Overall Sector

• India to negotiate for zero duty market access under the following FTA negotiations o India-EU Broad based Trade & Investment Agreement ( BTIA ) o India-EFTA BTIA o Regional Comprehensive Economic Partnership (RCEP) o India-Canada Comprehensive Economic Partnership Agreement (CEPA) o India-Australia Comprehensive Economic Cooperation Agreement (CECA) o India GCC Free Trade Agreement ( FTA) o India-Russia FTA o India-MERCOSUR Preferential Trade Agreement (PTA) Expansion o India-Chile PTA Expansion

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BACKGROUND

Shellac & Forest Products Export Promotion Council (SHEFEXIL), Kolkata.

Shellac and Forest Products Export Promotion Council (SHEFEXIL) is a nodal Export Promotion Council (EPC) for non-Timber Forest Produce and their value-added variants. SHEFEXIL is a direct contributor to economically challenged sections of Society – tribal women, marginal cultivators, economically challenged population from the North East, arid areas, etc. There are total 6 product panels under the purview of SHEFEXIL viz. “Fixed Vegetable Oil Cake & Others”, “Guar Gum”, “Other Vegetable Materials”, “Plant and Plant Portion”, “Shellac and Lac Based” Products and “Vegetable Saps & Extracts”. Total export of products falling under the domain of SHEFEXIL in the year 2018-19 is US$ 2156.55 Million. Top exported products of SHEFEXIL are; Guar Gum treated and pulverized, Psyllium husk (Isobgul husk), Extracts of plants, Menthol crystal, Guar Meal, Oil of peppermint etc. India’s top 10 export markets are; USA, China, Iran, Germany, Hong Kong, Netherland, Singapore, Japan, Russia and UK.

SHEFEXIL Panel-wise Performance

(April 2018 – March 2019 vs April 2017 – March 2018 )

PANEL Fixed

Vegetable Oil Cake &

Others (FVOC)

Guar Gum(GG)


(OVM)

Plant & Plant

Portion (PPP)


(SLBP)

Vegetable Saps &

Extracts (VSE)

Total

Cumulative Exports (in USD million )

April - March 2017 – 2018

71.78 646.94 53.29 330.18 34.15 782.01 1,918.35

April - March 2018 – 2019

76.78 674.88 54.23 319.77 38.43 992.46 2,156.55

% Growth in Apr- Mar.

2018-19 (as compared to

Apr- Mar. 2017-18)

6.97 4.32 1.76 -3.15 12.55 26.91 12.42

Source: DGCI&S

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KEY FACTS

▪ Cumulative Exports of all panels grew positively in terms of value except panel “Plant & Plant Portion” during the year 2018-19 as compared to the year 2017-18.

▪ Overall, SHEFEXIL exports have increased by 12.42% during the year 2018-19 as compared to the year 2017-18.

▪ Vegetable Saps and Extracts is the top most exported panel with total export of USD 992.46 Million during the year 2018-19.

▪ Highest growth of export is recorded under panel Vegetable Saps and Extracts i.e. 26.91%, whereas, exports has declined only under panel Plant & Plant Portion by 3.15% during the year 2018-19 as compared to the year 2017-18.

SHEFEXIL Panels

a) Guar Gum

b) Shellac & lac based products

c) Plant & Plant Portion (Herbs)

d) Vegetable Saps & extracts – Nutraceuticals

e) Fixed Vegetable Oil cakes & others

f) Other Vegetable materials

g) North East

SHEFEXIL product panels, other than Guar Gum, enjoy a negligible % of the World imports.

Panel-wise Major Importing Countries are given in the following table.

If we study World Import of Shefexil Products and compare the same with India’s exports, it can

be learnt that India’s contribution is lower. Import values of Shefexil products in the World,

(Panel wise) are substantial in USD terms and hence there is a scope to increase export to a

great extent.

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Following table demonstrates India’s contribution in World Imports Panel-wise

Panel World

Import in

USD

Million in

2018

India's export

to World in

USD

Million in

2018

% Share of

India’s

exports in

World

imports in

2018

Major Importing

Countries

PANEL I – VEGETABLE SAPS &

EXTRACTS

25878.210 1219.055 4.71 Ireland, UK, USA, Germany and Japan

PANEL II – GUAR GUM 1193.413 724.295 60.69 USA, Germany, China, Canada and Japan

PANEL III – PLANT & PLANT

PORTION (HERBS)

8700.369 325.752 3.74 USA, Germany, Netherlands, Turkey and

Spain

PANEL IV – FIXED

VEGETABLES, OIL CAKE &

OTHERS

16409.695 506.326 3.08 China, USA, Germany,

France and

Netherlands

PANEL V – SHELLAC & LAC

BASED PRODUCTS

11050.798 351.686 3.18 France, Germany, Spain, Italy and USA

PANEL VI – OTHER

VEGETABLE MATERIALS

1258.011 47.482 3.77 China, Japan, USA, Netherlands and Korea

Rep.

TOTAL 64490.50 3174.59 4.92

[Source: ITC Trade Map Tool - https://www.trademap.org/Index.aspx]

This segment is unique as it mainly consists of unorganized players. From the growers/gathers

to the manufacturers or Exporters, the stakeholders are not large players. This brings with it

typical problems of Narrowness of Vision and Scarcity of Resources. There is no sustained

approach of improving Production Quantities or moving up the Value chain by significant

Product Development.

Moving up the value chain and producing products of better, higher quality which serve the

needs of the global customers better is the only path ahead.

https://www.trademap.org/Index.aspx

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SWOT Analysis of SHEFEXIL products

1. Strengths

➢ Guar Gum

• Grows in desert, semi-arid condition

• India is the market leader

• largely Export driven market

• Wide range of applications in industries such as; Pharmaceutical, Cosmetics, oil drilling, chemical, food etc.

• Great potential for value added products

➢ Shellac

• Multifarious applications in fruits

• Confectionary and industrial application

• India is the undisputed market leader

• Entirely Export driven market

➢ Herbs

• Nutraceutical products can be developed from Herbs which has very high demand in international markets.

➢ Bamboo

• India has second largest bamboo reserves in the world

• Fast growing plant with multiple applications

• Significant potential if Export barriers are removed

2. Weaknesses

➢ Segment consists of unorganized, small players.

➢ Hence, this segment suffers from narrowness of vision and focus.

➢ Low on Value Addition.

➢ Production of some of the SHEFEXIL products is highly dependent on suitable weather conditions.

➢ Inability to match product development with global requirements.

➢ No association with a world class Research Institute.

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3. Opportunities

➢ Demand for natural products is growing globally.

➢ Opportunity to move into organic variants of Medicinal herbs.

➢ Association with leading Research Institute may lead to value added variants.

➢ Opportunity to tap newer international markets to garner substantial market share.

4. Threats

➢ The performance of this Segment is totally dependent on Global economic scenario as

most products are exports based.

➢ The major products like Guar Gum, Shellac etc. are being threatened by cheaper,

synthetic substitutes.

➢ The Notification No SO 1352 (E) dated 7.4.2016 also make it imperative that Biological

resources are exported, only in its Value added avatar.

Overall Suggestion for all Panels

➢ Investing more in research and development for creation of value added products.

➢ Aggressive marketing of SHEFEXIL products

➢ Refund of State and Central Taxes and Levis for making export product cost competitive.

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Export Strategies for achieving minimum 15% annual growth

1. Guar Gum (GG)

Strength:

➢ India is the largest producer of Guar in the world and caters to 80% of the world’s requirements. More than 90% of the Guar Gum produced in the country is exported and there is hardly any demand in the domestic market. Guar, a cash crop, is predominantly produced in India not only providing livelihood to the poor and marginal farmers but also giving employment to lakhs of people in the state of Rajasthan.

➢ Earns valuable net foreign exchange for the country

➢ It is one of the leading products and has an export turnover of USD 674.88 million during the year 2018-19.

Weaknesses:

➢ Excessive speculation in commodity boards like NCDEX had led to the inflated prices,

and thereafter shifting to synthetic options in global markets, thereby reducing demand.

➢ Dual duty structure of China: China is a major importer of Guar Gum Splits. The duty is 5% for Indian Guar Gum Splits and 6.70% for Guar Gum Powder as per Asia Pacific Trade Agreement (APTA). However, as for Pakistan is concerned, the import duty in either case is Nil. This allows China to successfully compete with Indian Guar Gum Powder. Also, Indian Guar Gum Powder manufacturers are at a disadvantage and also reduces the exports of the Value added variant, i.e. Guar Gum Powder.

Suggestions for achieving 15% Export growth (Refer Annexure 1 given below)

1) Product Development: To increase our export share there is a need to develop derivative products of Guar Gum like, Hydroxy Propyl Guar (HPG) more suitable for oil well drilling, Heat Depolymerized (HP) and Cationic Guar Gum (CGG) etc. There is very good demand for such derivative products of Guar Gum in international markets. Depute a Govt. Reputed Research Institute for developing derivatives products and researching new applications for Guar e.g. ICT

2) Guar Meal – Revision of Classification from item code 11061010 to Chapter 23.02 which will enable its exports to China and EU.

3) Dual Import Tariff on Indian Guar Splits & Guar Gum Powder in China to be abolished, similar to Free Trade Agreement between China and Pakistan. China levies 6.70%

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import duty on Guar Gum powder and 5 % import duty on Guar splits from India and 0% for both from Pakistan.

2. Shellac & Lac based Products (SLBP)

Strengths

➢ India ( followed by Thailand ) is a global leader in Shellac and lac production

➢ Lac is a natural resin with a range of characteristics for use in Food, Cosmetics and

Industrial applications

➢ It adds to the economic empowerment of the marginal, indigenous forest people of India

Weaknesses

➢ Low production of Sticklac in the last few years led to market force driven price increases in India. The impact of the high prices registered in high Export realization in 2013-14. However, this enabled China to offer both natural and synthetic alternatives at prices that were much lower than Indian prices. The international market therefore has moved significantly to China.

➢ Demand is low globally. ➢ Questions about Toxicity of Shellac as food additive – specifically from EU

Suggestions

➢ Enforce Minimum Export Price of USD 4/kg for Seedlac and Shellac for ensuring

minimum Revenue across the supply chain so that the product is remunerative

➢ Support to conduct the Toxicity of Shellac to ensure continuous exports to EU

3. Plant & Plant Portion (Herbs)

Strengths:

➢ India has a rich heritage of Medicinal herbs and there is renewed interest in the same globally

➢ A wide range of Medicinal herbs are available in India

➢ These herbs are generally without side effects

➢ They rejuvenate the whole system instead of focusing on one specific organ or body part.

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Weaknesses:

• Unable to compete on the price front in price sensitive markets globally.

• The exports have been healthy but no new products have been identified which have export

potential.

• The exports need to move to value added options

Suggestions

• Isolation of Phytoconstituents – this will lead to pure constituents that can be

exported at much higher value

• Provide support to enable exporters to get :

• International certification for Product Quality

o GRAS, cGMP as per 21 CFR 117 under Food Safety Modernization Act of

USA, Organic certification as USDA/EU, Dietary Ingredient Verfication

Program of United States Pharmacopoeia, Fair Trade certification, Non-

GMO project certification

• International certification for manufacturing units

o WHO-GMP, EU-GMP, TGA approval of manufacturing facility, etc.

• Support Innovation by facilitating international patents

o Scheme to support genuine and bonafide patents by Indian innovators

• Support of adoption of high technology

o Grant-in-aid and/or soft loans for upgrading technologies in manufacturing

and QC testing

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4. Vegetable Saps & Extracts - Nutraceutical (Health Supplements) Industry (VSE) (Refer Annexure 2)

Strengths:

➢ The changing profile of the Western Customer, which became tilted towards older

people with longer life spans, also shifted the balance towards supplements as

customers seek lifestyle supplements to preserve their health

➢ Natural plants and herbs indigenous to India are a treasure trove of supplements

which could provide a diverse range of solutions for a variety of conditions

➢ The supplement market has carved out a distinct identity for itself globally and

continues to develop and grow.

➢ Emerging markets such as China, South Korea and of late, India have also start large

scale usage of these products

➢ India has rich traditional system of medicine and biodiversity to support this trend

➢ This supplement industry globally is valued at $ 146 billion and growing at a CAGR of 9.5 % Year on Year.

Weaknesses:

➢ There is no formal mandate for SHEFEXIL to represent the Nutraceutical industry.

➢ SHEFEXIL is headquartered in Kolkata and has no branch office in other locations.

Suggestions/Measures Proposed to achieve minimum 15 % growth.

➢ Enrolment drives Nutraceutical exporters in SHEFEXIL.

➢ Detailed study for identifying:

o grants for R & D and clinical studies,

o grants for infrastructure and

o Schemes to support cultivation of medicinal plants.

➢ Participate / have a separate Nutra section in key industry forums such as Supply Side

West, Vitafoods etc.

➢ Work with Ministry of Commerce and DGFT to create separate HSN code structure for

all Nutraceutical ingredients and formulations.

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5. North East (N.E.)

• Surrounded by four sovereign countries.

• 4600 km long international border with the four neighboring countries (98 per cent) 2% with the nation.

• Converting Geographical isolation/disadvantage can be converted into region of advantages.

• Region’s proximity to South east and East Asian Countries.

• Greater regional economic cooperation- SAPTA, Promotion of Border Trade-Bilateral ties with Bangladesh & Myanmar.

• Proposed growth Quadrant including Myanmar, Laos, South West China -Trans Asian Railway

Strength

The North East region is endowed with resources

• The region is bountifully endowed with bio-diversity, hydro-potential, oil and gas, coal,

limestone and forest wealth.

• The forest resources are rich, offering valuable wood, medicinal plants and roots, orchids, cut flowers etc.

• It is estimated that 10.69% of the forest produce requirement of the country is met from the forests of this region.

Weaknesses

1. Lack of Export culture & expertise

2. Poor Access to ASEAN Markets

3. Poor Border Connectivity

Suggestions

• Bamboo sector to be given Industrial status with benefits under the Industrial &

start-up schemes

• Focus on Bambusa Bambos as the Industrial variety of Bamboo of India

• Establishment of Bamboo Tech-park in the north eastern region

o Significant boost to the North east economy

o Offering gainful employment to North-east youth

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Annexure

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Annexure 1

Suggestions for achieving 15% Export growth in Guar Gum (inputs from Member exporters)

1) Intense Speculation leading to price instability deterring potential users

To ensure the long term health of the industry, the Government should consider the delisting of Guar forward contracts from the NCDEX or ask the SEBI to implement a fool proof strict mechanism to deter the use of the exchange for speculative activities. Once the prices show a stable trend with normal seasonal fluctuations as in Agricultural products the buyers who have moved away to using substitutes will start coming back and can also increase the consumption.

Due to the spike in prices a few years ago (when even the NCDEX had to temporarily suspend the trading, with subsequent investigation threw up many irregularities in the trading) many of the end users moved away from Guar. The impact of the same is still being felt primarily due to the following reasons

The food Industry totally moved away from Guar Gum and switched over to substitutes which allow a more stable price option. This was a very expensive exercise for the Food Industry as it had to make several changes in their processes, approvals from local authorities, labels, etc. The food industry is wary of switching back because they are not sure about the long term stability of the prices.

The Oil Industry too was not very happy with the situation. They have already started adopting technologies not dependent on Guar like Slick water which is cost wise also a more viable option for the Drilling companies

While it is an oft repeated argument of the NCDEX that it is offering a price finding mechanism for the benefit of farmers and a platform for the exporters to hedge their forward bookings, sadly both the much touted objectives are not being fulfilled.

2) Allowing export of raw material to other countries

The Government of India should consider levying a Minimum Export Price for Guar Splits so that the finished products from India have a competitive advantage over the products processed overseas and also the MNC’s start considering India as a manufacturing destination rather than just sourcing the raw material from India

China has developed a whole Guar Gum Industry of their own based solely on imported Guar Splits from India and Pakistan. The Govt. of China also supports the industry, an example of which is given below

Import of Guar Gum Powder from India: Custom Duty 6.70%

Import of Guar splits from India: Custom Duty 5%

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Import of Guar Splits and Powder from Pakistan: Custom Duty 'Nil'

When the raw material is processed / reprocessed and re-exported even this import duty component is nullified, which makes them directly competitive with the Indian Industry.

With easy availability of raw material none of the MNC's have never ever considered setting up shop in India for the manufacture of Guar Derivatives. Overseas companies are mile ahead of us in terms of R&D. They are importing splits and selling derivatives earning more in terms of value addition than the entire Industry in India.

3) Generate favorable atmosphere for technological tie up and Investment opportunities for overseas Companies in India

While all the ingredients for making end products with Guar are available in India, Most of the investors or companies are wary of setting up shop in India. We know of several companies in the Food Industry, who have by passed India, even in spite of its strategic location, to set up shop in China. Some of the companies use Guar as a major ingredient in their recipes but have set up shop in China

The companies manufacturing derivatized Guar for use of Guar in Cement, Paint, Cosmetics, etc. like Hydroxypropyl Guar, Carboxymethyl Hydroxypropyl Guar, Hydoxypropyltrimonium Chloride Guar have no presence in India.

Should these companies be invited to India for manufacturing derivatives, besides bringing in technology and investments, they will be generating employment opportunities. On the other hand when they export value added products, the foreign exchange earnings will increase manifold.

4) More Technological inputs for farmers to give them higher yield and returns

The government should depute the CAZRI to further research and develop seeds for arid conditions for better yield, more drought resistant and shorter turnaround time. The major Guar growing regions are solely dependent on the monsoon rains, special emphasis should be laid to develop seeds with minimal water requirement for the best possible yield. The CAZRI has already done good work here but much needs to be done. Moreover the Government should hold training sessions in the field at various locations to transfer the latest farming methods for the best crop produce.

During the crop season subsidized seeds should be made available to them from authorized centers. This will help in increasing returns to the farmers while at the same time keeping the prices stable with increased availability.

5) Depute a Govt. Reputed Research Institute for developing derivatized products and researching new applications for Guar

The Government should depute a Govt. Research Institute partnership to develop the

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derivatized products indigenously and transfer the technology to the Industry. This would be more in our country’s favor as the proprietary and intellectual rights will stay within the country.

Guar is a very versatile product and with due research, several new applications can be discovered in several fields. The R&D should be a continuous exercise so that new applications can be discovered and patented in India itself.

6) Refund of embedded taxes

Exporter has to pay various domestic duties/taxes which remains embedded in the cost of final product as there is no refund mechanism available for such taxes/duties. This increases cost of export product and product becomes uncompetitive in international markets. The domestic taxes include; Central Excise and VAT on petroleum products, electricity duty, mandi tax, toll charges etc. The exporters should be given refund of such taxes in the form of remission of State and Central Levis in addition to the extant Duty Drawback Scheme, through the Scheme for Rebate of State and Central Taxes & Levis (RoSCTL) on export of SHEFEXIL products (Recently, for textile such kind of refund is granted through the scheme RoSCTL). Refund of such taxes and duties will make our export products competitive in international markets and hence, will increase our exports. SHEFEXIL has already submitted its report on refund of embedded taxes to DGFT for consideration/ appropriate action vide OM no. K-15021/2/2019-EP-CAP dated 25.02.2019

7) Rationalization of GST

Under the GST Regime there is an inconsistency in the applicable rates of GST. Guar Gum Powder is mostly exported out of the country. While the Guar Splits are taxed at 5%, the Guar Gum Powder is taxed at 18%. The exporters have to first submit the tax and then apply for a refund. This is leading to an unwanted increase in the workload for the Government. The Exporters suffer as their working capital is blocked for the period of the refund.

We request you to please incorporate the above in the submissions to the Government which will take care of the Short terms targets set out by the Ministry and at the same time help in forming a base for the Long term for the consolidation and benefit of the Industry and the Farmers

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Annexure 2

Vegetable Saps & Extracts - Nutraceutical (Health Supplements) Industry (VSE) –

inputs from Member Exporters

Introduction:

The health supplement (nutraceuticals) industry has globally developed new wings as many

innovator companies are tapping into the potential of this positive and preventive and health

care market. They also realized that natural plants and herbs are a treasure trove of

supplements which could provide a diverse range of solutions for a variety of conditions.

The changing profile of the Western Customer, which became tilted towards older people with

longer life spans, also shifted the balance towards supplements as customers seek lifestyle

supplements to preserve their health.

Today, the supplement market has carved out a distinct identity for itself globally and continues

to develop and grow.

It has now found new wings as customers in emerging markets such as China, South Korea and

of late, India have also start large scale usage of these products.

Early movers in India have seen this opportunity and supply raw material, extracts and value-

added ingredients to this industry.

However, their share in this fast-growing market is a small 1-2 %, and that also more in low

addition products such as raw material and basic extracts.

The opportunity is huge, given the biodiversity and capabilities of India at both the front and

back end.

India is also one of the countries which has got very rich traditional system of medicine using

medicinal plants as raw material. With the increasing awareness about the side effects of

modern system of medicines and the potential of traditional system of medicines, the time is

ripe to harness this immense potential and carve out a significant share of this global industry.

This supplement industry globally is valued at $ 146 billion and growing at a CAGR of 9.5 % Year

on Year.

India’s share of this industry in terms of exports is only around $ 1.5 billion, which is around 1 %

of the total market. However, with the right supply and focus, the Nutraceutical industry

exports can grow by leap and bounds and provide major fillip to India’s export growth initiative.

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Strengths of the Panel

• Medicinal Plants are considered Minor Forest Produce; hence Nutraceutical industry

should be covered under scope of SHEFEXIL.

• A few Nutraceutical exporters are members of SHEFEXIL.

Weaknesses of the Panel

• There is no formal mandate for SHEFEXIL to represent the Nutraceutical industry.

• SHEFEXIL is headquartered in Kolkata and has no branch office in other locations.

Existing and Potential Market for Exports

• The most important market by far, for this industry is the US, followed by EU and Japan.

• Emerging markets are China, South Korea, and Taiwan.

Suggestions / Measures Proposed to achieve min 15 % growth of this industry.

• SHEFEXIL should be formally mandated, by including Nutraceutical industry, in its terms

of reference.

• SHEFEXIL should have a branch office in Bangalore or Mumbai

Action Plan.

• Start an enrolment drive to include all key Nutraceutical exporters in SHEFEXIL. Build a

database of exporters and their export data.

• In view of imminent discontinuation of MEIS, SHEFEXIL should work closely with

industry, understand its needs and provide suitable schemes on urgent basis to enable

its rapid growth. Some proposed schemes (not exhaustive) are drawback for embedded

taxes, grants for R & D and clinical studies, grants for infrastructure and schemes to

support cultivation of medicinal plants.

• Participate / have a separate Nutra section in key industry forums such as Supply Side

West, Vitafoods etc.

• Work with Ministry of Commerce and DGFT to create separate HSN code structure for

all Nutraceutical ingredients and formulations.

• Work with considered departments to develop and implement a protocol to certify

forest procured products as Organic will bring quality focus to this segment and add

much needed value across the supply chain.

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Annexure 3

Export Potential of North Eastern States

Forest-based Products:

• Medicinal plants, broomstick grass, tejpatta, citronella oil, agarwood oil, lemon grass oil,

rubber products.

• Medicinal herbs, broomstick grass and tejpatta are among the prominent forest-based

export items. The medicinal herbs which are reportedly moving out of the Region, in

sizeable quantity, include Kuth-root, Dioscrorea Spp., Coptis Teeta, Rauvolfia

Serpentina, Vinca Rosea root and Chiretta.

• In the case of broomstick grass, the exports take place in loose form and the port of

shipment is usually Bombay from where the consignments of such grass packed in

gunny bags are sent to the Middle East countries

Export potential of specific NE States

• Tripura - Bamboo • State Bamboo Mission for value addition to resource • Cane/ Bamboo Handicrafts among the best ; • Industrial, furniture / furnishings, other application

• Arunachal Pradesh • Wood Pulp from Bamboo. • Newsprint from Bamboo • Herbal Medicines • Aromatic/Grass- Citronella, Lemon, Patchouli, Jatropa etc

• Meghalaya • Ginger • Turmeric • Bay Leaf ( Tej pata ) • Phool Jharu, • Bamboo • Asoeftida

• Nagaland • Bamboo • Turmeric • Naga chilli • Cardamom • Ginger • Medicinal plants

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• Manipur • Medicinal Plants • Hill Brooms • Bamboo • Betel Nuts

• Mizoram • Bamboo • Anthirium • Assam • Medicinal Plants • Agar Agar

• Assam • Medicinal Plants • Agar Agar

Mineral Products:

• Coal, limestone, marble and products, decorative dimensional stones, ferro-nickel alloys, petro-chemical products.

• Limestone and coal are the principal commodities exported in this group from the region. Demand for coal in Bangladesh is large. While the former is mainly exported to Bangladesh from the mines in Meghalaya to the Government cement factory located across the border in Bangladesh, the latter finds its way to the neighboring countries like Bangladesh and Bhutan

Textiles/Handicrafts:

• Handloom made-ups and furnishings, cane and bamboo crafts (chopsticks, bamboo mats and other decorative items).

• Among the textiles, the region exports handlooms, e.g. scarves and tribal shawls made of staple, cotton and art-silk yarns, and silk. The handloom textiles including the shawls having traditional designs and patterns are mainly supplied to the garment exporters in Delhi who convert them into various handloom articles and garments. Major markets for such items are stated to be USA, Canada and West Germany. In the case of silk, the Region supplies mainly raw materials like cocoons and yarns to the exporters based in Calcutta and Bhagalpur who convert the same into fabrics for export purpose.

Service Sector: Tourism (adventure tourism, pilgrimage, health care centres, eco- tourism).

• Tourism has tremendous potential in this Region because of its rich hilly terrain and greenery. The Region offers abundant scope of adventure tourism. It would be possible to promote development of tourism in a large measure if all the States of the Region put together a common framework of tourism development and devise an integrated circuit of places of tourist attraction.

• With a lead from the Ministry of Tourism, a common tourist package for the North East

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can be evolved. The package may focus on creation of adequate and necessary facilities at several places in the Region. With the help of Bangladesh and Myanmar, it may also be possible to develop a inter-regional plan for tourism development which may go a long way in not only promoting tourism but also in opening the North East to the neigbouring countries.

Agri-Horticulture Sector:

• Apples, grapes, Lychees, guava, pineapple slices/titbits, jams, citrus juices, passion fruit and juices, mushroom products, spices both in whole and ground form, dehydrated ginger, ginger paste, ginger candy, tejpatta, asparagus, potato chips, organically grown tea, organic foods, floricultural products, chilli-paste (based on bird-eye chilli),orchids.

• Orchids are emerging as a promising item for export from the Region to European countries, Japan and Australia

Weaknesses

1. Poor Access to ASEAN Market

2.Poor Border Connectivity

• Connectivity is key to development of the regions.

• Infrastructure development of key sectors like surface road, Rail, Air and Inland water

transport is a necessity for the regions.

• Surface connectivity is the only option to establish North-East India’s meaningful connectivity with main land of the country and Southeast Asian nations and vice-versa.

Suggestions

• Country specific Strategies to be devised for:

• Consolidate and greater market shares in Indonesia, Malaysia, Myanmar, Philippines, Singapore, Thailand and Vietnam

• Penetrate in Brunei, Cambodia and Laos

• Product wise:

• SHEFEXIL’s export to ASEAN countries is insignificant, though ASEAN countries are contiguous to the North East Region of India.

• Of the total 47 sub-headings ( Six digit HS Code ) of SHEFEXIL, only in the case of

26 sub-headings, ASEAN Country’s / Countries’ name is registered in top 10

• Importers’ List ( means there is significant demand )

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• Tariff specific: Despite India having Free Trade Agreement (FTA) with ASEAN since 2010,

India has not received better market access in Indonesia, Lao, Myanmar, Philippines and

to an extent, Thailand.

Instead of being in NT-1 ( Normal Track 1 ), or NT – 2 ( Normal Track 2 ) which enjoy

zero duty, Tariff line are kept under ST( Sensitive Track ) and HSL ( Highly Sensitive Lists )

which have limited preferential track. Worst case is EL (Exclusion list) which does not

enjoy any tariff preference.

There are many SHEFEXIL products on which ASEAN countries have provided tariff

preference to its other FTA member countries such as; China, Japan, South Korea etc.,

whereas, for the same products ASEAN countries have not provided any tariff

preference to India or provided only concessional tariff. Therefore, India is facing tariff

disadvantages in some ASEAN countries. Few examples are as under:

Importing Countries

Description HS Code MFN Rate

Tariff Preferences provided to top

supplying countries other than India

Tariff preferences provided to

India

TD faced by India in importing

countries

Vietnam Other green tea (not fermented)

090220 40% China – 0% Korea Rep. – 0%

33.5% TD of 33.5% against China &

Korea Rep.

Indonesia

Vegetable saps and extracts: Other

130219 5% China – 0% Japan – 0%

4% TD of 4% against China & Japan

Other than Mucilages and thickeners, whether or not modified, derived from vegetable products

130239 5% China – 0%

4% TD of 4% against China

Mixtures of odoriferous substances and mixtures

(including alcoholic solutions) with a basis of

one or more of these substances, of a kind

used as raw materials in industry;

330290 5% China – 0% Japan – 0%


Other green tea (not fermented)

090220 5% China – 0% Japan – 0%


Other than Ginseng roots, Coca leaf, Poppy

straw, Ephedra

121190 5% China – 0%


Thailand Other green tea (not fermented)

090220 90% Japan – 0%

60% TD of 60% against Japan

Sunflower seeds, whether or not broken

120600 30% China – 0%


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Other fixed vegetable fats and oils and their

fractions, whether or not refined, but not

chemically modified: Other

151590 10% China – 0%


Philippines Pepper: Neither crushed nor ground

090411 15% Vietnam – 0% Malaysia – 0%

12.32% TD of 12.32% against ASEAN

countries

Other fixed vegetable fats and oils (including

jojoba oil) and their fractions, whether or not

refined, but not chemically modified:

Other

151590 3% China – 0%

No Tariff Preference

TD of 3% against China

Other green tea (not fermented)

090220 3% Vietnam – 0% Singapore – 0%

China – 0%

No Tariff Preference

TD of 3% against ASEAN countries &

China

Therefore, India should seek zero duty market access on the products where India is facing tariff disadvantages in ASEAN countries at the time of review/renegotiation of India-ASEAN FTA.

Suggestions to enhance Border connectivity

Land route:

1. Urgent completion of the East – West Corridor highways:

a. Siliguri(West Bengal) – Sirirampur (Assam) section b. Lumding via Haflong to Silchar section

2. Asian Highway No.01 (AH 1): four laning of the highway from Nagaon via Numaligarh (Assam) –Dimapur –Kohima (Nagaland) – Imphal and Moreh in Manipur (the last border with Myanmar)

3. Immediate completion of Trilateral highways between Moreh (India) via Tamu –Monywa – Yangon –Myawaddy(Myanmar) and Mae Sot in Thailand. In recently held ASEAN Summit in Kulalampur, Malyasia, Our Hon’ble Prime Minister Shri Narendra Modi has proposed US$ 1 Billion as Line of Credit to develop the Road Connectivity.

4. Immediate step to open the old Stillwell road linking Ledo in Assam with Kunming in China via Nampong-Pangsau pass (Arunachal Pradesh in India) –Tenai -Myitkyina in Myanmar.

5. Complete the widening of road construction between Aizawl and border town hamphai/

Zawkhathar in Mizoram

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6. Complete the construction of road between Zawkhathar LCS (Mizoram in India) to Rhi

Tiddim /Rhi Falam road (Myanmar)

7. Introduce Bus services between:

• Shillong in Meghalay –Sylhet in Bangladesh

• Imphal in Manipur – Mandalay in Myanmar

Railways:

• Speed up to complete the railway track conversion works between Lumding and Silchar via Haflong in Assam

• Complete the railway track construction works linking Silchar (Assam) with Imphal via Jiribam in Manipur

• Double lanning of railway track and introduction of electric trains between Guwahati and Barauni

Waterways:

• Make operational the inland waterways between NE India and mainland of the country via Bangladesh under Protocol 1, 2, 3 &4.

• For effective control and shipping passage of vessels, effective and operational navigational systems must be installed immediately

• Dredging of Kusiyara River Route in Bangladesh, from Ashuganj in Bangladesh upto Karimganj Ferry Ghat Land Custom Station and installation of night navigations along the inland water routes. This will reduce cost of carriage from Kolkata to South Assam, Mizoram, Tripura and Manipur by Rs. 2,000/- Per M.T.

Air connectivity:

• Increase intra-regional air connectivity in NE India and also with our neighbouring countries

• Introduce and implement air services between –

• Guwahati (India) – Dhaka (Bangladesh

• Guwahati – Imphal (India) and Mandalay – Yangon in Myanmar

• Guwahati (India) –Yangon (Myanmar) and Bangkok (Thailand)

• Guwahati (India) – Paro (Bhutan) – Kathmandu (Nepal)

• Introduce air cargo services to and from Guwahati and rest of the country and also with our neighbouring countries

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Visa:

Visa is a must and form part of the travel document and can be treated as part of connectivity too. So, Visa offices of Myanmar, Thailand and Bangladesh may be allowed to establish here in Guwahati being the gateway of NE India inconjunction with the Look East Policy of the country.

Suggestions to enhance Trade from North Eastern Region

North Eastern Region of India and neighboring country Myanmar have become the “Transit Point” for future trade and commerce, having direct land link with the most dynamic economies, India China, and Thailand.

1. Signing of Trade and Transit Treaty with Myanmar, Thailand and China because all Chinese and Thai goods are smuggled through Moreh (Manipur) and Zokhawthar (Mizoram) Land Customs Station. Daily unofficially transaction is not less then Rs. 5 Crores, which are more then 1000% of official trade.

2. Export of Raw Leather to Bangladesh from North East India, with paying 10% duty. Now we have to pay 60% duty, and therefore it is smuggled.

3. Opening of Nampong Land Customs Station in Arunachal Pradesh (Indo-Myanmar)

4. Allow Import of Timber from Myanmar through Zokhwathar (Champai) in Mizoram and Nampong in Arunachal Pradesh.

5. Full fledged Plant Quarantine and Food Testing laboratory should be setup at Akahura in Agartala, Sutarkandi in Karimganj, Dawki in Meghalaya Moreh in Manipur and Zokhawthar in Mizoram.

6. Create a separate Exim Policy for North Eastern Region, if not more relaxation should be given in the Exim Policy in respect of North Eastern Region.

7. 7. To Open Special Economic Desk for North East in Indian Missions in ASEAN countries, preferably Bangladesh, Myanmar, Thailand & China.

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v) EPCs Staff-details along with updated CoA member list

List of Employees Sl.No. Name Designation Section

Permanent Employees

A

1 Dr. Debjani Roy Executive Director Overall in-charge of all the functionalites of the Council

2 Mr. Amit Kundu Assistant Gr.II Membership

3 Mr. Swapan Mondal Sr. Peon & Despatch Despatch

4 Mrs. Manju Chakraborty Peon on compassionate ground Reception

Contractual Employees

B

1 Dr. C. Kanjilal Technical Manager (Part time) Signatory of Guar Gum Certificate

2 Shri N. Mohan Padmanabhan

Advisory Advisory

3 Mr. Anup Samanta Chemist/Laboratory Assistant (Full Time)

Laboratory Testing related works

4 Mr. Kanai Datta Issuance of Certificate of Registration/Quality of shipment (Full Time)

Issuance of Quality Certificate for Shellac products

5 Mr. Swapan Bose Statistics (Part time) Statistics related Works

6 Mr. Somnath Gain In-charge Accounts (Full Time) Accounts realted Works

7 Mr. Dhruva S. Chatterjee Accounts Accounts realted Works

8 Mr. Roshan Thakur Issuance of Health / Endorsement Certificate for Guar Gum

Issuance of Health / Endorsement Certificate for Guar Gum

9 Mr. Zakir Hussain Driver incl Overtime, etc Driver

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Tenure of COA Members is for 2 years.

MEMBERS OF THE PRESENT COMMITTEE OF ADMINISTRATION OF THE COUNCIL

1. SHRI ASHVIN K. NAYAK CHAIRMAN, SHEFEXIL PANEL : HERBS PARTNER M/s. KALPESH CORPORATION C-145, MARKET YARD, UNJHA , DIST. MEHSANA, N. GUJARAT, AHMEDABAD - 384 170, GUJARAT M : 9824044621 Ph : 02767-282448, Fax : 02767-252995 email :[email protected]

2. SHRI DILIP SONI VICE-CHAIRMAN, SHEFEXIL

PANEL : GUAR GUM INDUSTRY

DIRECTOR

M/s. SHREE RAM COLLOIDES PVT. LTD.

E-1-16, 17, AGRO FOOD PARK, BORANADA,

JODHPUR - 340052, RAJASTHAN

M : 9414128076,

Ph : 0291-274 8702, Fax : 0291-274 0747

email : [email protected],

[email protected]

3. SHRI SUMIT KUMAR GHOSH PANEL : SHELLAC & LAC BASED PRODUCTS INDUSTRY PROPRIETOR M/s. NATURAL PRODUCTS MANUFACTURERS AJ - 65, SALT LAKE, SECTOR - II KOLKATA - 700091 M : 9830165125 Ph : 2359-1383, 4065-5376 (Pradip, M 9231584618), Fax : 2359-1383 email : [email protected], [email protected]

4. SHRI ANUP KUMAR AGARWALA PANEL : SHELLAC & LAC BASED PRODUCTS

INDUSTRY

PARTNER

M/s. RAJ KUMAR SHELLAC INDUSTRIES

BHAGAT CHAMBER, 12A, N. S. ROAD, 5TH

FLOOR, ROOM NO. 1, KOLKATA - 700 001,

WEST BENGAL

M : 9932332415, Ph : 2231-0727, Fax : 2230-1255

email : [email protected]

5. SHRI P. K. SARAOGI PANEL : SHELLAC & LAC BASED PRODUCTS INDUSTRY PARTNER M/s. PARWATI LAKH UDYOG 135A, CHITTARANJAN AVENUE, 3RD FLOOR, ROOM NO. 30, KOLKATA - 700 007 M : 9831016899, Ph : 2268-9120, 2271-0245, Fax : 2269-3074 email : [email protected],

6. SHRI DILIP KR. SARDA PANEL : GUAR GUM INDUSTRY

PARTNER

M/s. SARDA GUMS & CHEMICALS

14/16, OVALWADI, VITHALWADI, BAJAJ

CHAMBER, KALBADEVI ROAD, MUMBAI – 400002.

M : 9414120060, Ph : 022 2240 7155, Fax : 022

2240 2304

email : [email protected]

7. SHRI PURSHOTAM KUMAR HISSARIA PANEL : GUAR GUM INDUSTRY DIRECTOR M/s. SUNITA HYDROCOLLOIDS PRIVATE LTD., E-394, MIA, PHASE-II, BASNI JODHPUR - 342005 M : 9414126581 Ph : 0291-6622222 / 2740270, Fax : 0291-2740-867 email : [email protected],

8. SHRI S. SUBRAMANIAN PANEL : OTHER VEGETABLE MATERIALS

INDUSTRY

PARTNER

M/s. SHRI BRAMMANAYAGI PALMFIBRE

EXPORTS

PLOT NO.57, DOOR NO.1/57B, V.M.S.NAGAR-

SOUTH, TUTICORIN - 628 002, TAMIL NADU

M : 9443161907

Ph : 0461-2347-446, Fax : 0461-234-7531

email : [email protected],

[email protected],

mailto:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]

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INDUSTRY PARTNER

M/s. SHRI BRAMMANAYAGI PALMFIBRE EXPORTS PLOT NO.57, DOOR NO.1/57B, V.M.S.NAGAR- SOUTH, TUTICORIN - 628 002, TAMIL NADU M : 9443161907 Ph : 0461-2347-446, Fax : 0461-234-7531

email : [email protected], [email protected],

mailto:[email protected]:[email protected]

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vi) MAI Grant given to the Council in last five years - will be sent shortly

The details of MAI grant received by the Council for the last 5 years is given as under

Year 2014-15

2015-16 2016-17 2017-18 2018-19

Scheme MAI MAI MAI MAI MAI (Rs.)

Grant-in aid received

NIL

NIL

NIL

Interdye Asia Exhibition, 2017 = 12,85,571 China Interdye 2017 = 14,81,403 Total =27,66,974

China Interdye Exhibition 2018 (11 – 13 April, 2018) = 14,79,333 Beauty World Middle East, UAE ( 8th – 10th May, 2018 ) = 17,50,000 Interdye & Textile Printing Eurasia 2018 (October, 2018) = 22,47,500 HI Europe & NI 2018, Frankfurt, Germany (Nov., 2018). = 22,41,200

Grand Total = 30,39,873/-

Grand Total = 77,18,033/-

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Issues / Constraints faced by the Council:-

Guar Gum:-

➢ Product Development of Guar Gum and its Product Derivitization -

Derivatized Guar for use of Guar in Cement, Paint, Cosmetics, etc. like

Hydroxypropyl Guar, Carboxymethyl Hydroxypropyl Guar,

Hydoxypropyltrimonium Chloride Guar.

➢ Need to associate with a high quality Research organization.

➢ Research to support use of Guar Gum (E412) in food for infants below 16 weeks of

age in response to Call for data by EFSA, EU.

➢ Revision of Classification of Guar Meal.

➢ No inclusion of Guar Gum Powder under Transport and Marketing

Assistance Scheme.

➢ No ITC HS allotted for Gum Gum Refined Split.

Shellac :Toxicity data for Shellac (E 904)

Inadequate support for conducting study related to toxicity level in shellac and related

products:

European Food Safety Authority (EFSA) has demanded toxicological data on shellac. This data will

decide the future of export of Shellac to EU countries. To conduct the study financial assistance is required. Total estimated cost of conducting study is Rs. 4,94,60,000/-. SHEFEXIL has received assistance of Rs. 52,60,000/- under MAI scheme. However, till date SHEFEXIL has not received full funding. SHEFEXIL has requested Biotechnology Industry Research Assistance Council (BIRAC) for funding.

Herbs :- Engagement of a knowledge partner like Research and Information System for

Developing Countries (RIS), Lodhi Road, New Delhi to be associated with the task force as a

knowledge agency to carry out the required research/field work to help the Task Forces prepare

its recommendations.

Vegetable Saps & Extracts & other Vegetable materials:- Work with Ministry of

Commerce and DGFT to create separate HSN code structure for all Nutraceutical

ingredients and formulations.

North Eastern Region:-

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➢ Study proposal: Rapid assessment of Bamboo sector in India (Production, trade, market

trends & opportunities) and feasibility of setting up Bamboo Tech Park in NER

➢ Proceed for Safe Guard Duty against Bamboo to be used as Incense sticks from

Vietnam and China in order to boost domestic Bamboo Industry

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viii) Event done by EPCs month-wise

Sl. No.

Detail / Particular Month

1. 18th China Interdye Exhibition 2018, Shanghai, China 11th – 13th April, 2018.

2. Beauty World Middle East Exhibition, Dubai 8th – 10th May, 2018.

3. Interdye & Textile Printing Eurasia, 2018, Istanbul, Turkey

25th – 27th October, 2018

4. Hi & Ni Europe 2018, Frankfurt, Germany 27th - 29th Nov, 2018

Component-wise break-up as approved in EC of MAI (Rs. in Lakhs)

Abroad event

• Organization – Shellac & Forest Products Export Promotion Council

(SHEFEXIL)

• Event Name – 18th International Dye Industry, Pigments & Textile

Chemicals Exhibitions, 2018

• Place – Shanghai, PRC

• Event Date – 11th – 13th April, 2018

• Recommended by EP(CAP) Division

▪ Indian Exhibitors: 10

▪ Total MAI Approved Grant : Rs. 15,00,000/- (as per EC minutes)

▪ Estimated Expenditure: - (Rs. in Lakh)

S. No. Heads MAI assistance approved

1 Venue cost including organizing expenditure 14,75,000

2 Publicity Cost -

3 Cost of catalogues and other materials 25,000

4 Translation & Interpretation Cost -

Total 15,00,000

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Abroad event


(SHEFEXIL )

• Event Name – Natural Products Expo West, 2019

• Place – Anaheim Convention Center, Los Angeles, CA USA

• Event Date – March, 2019




▪ Estimated Expenditure: -

S. No.

Heads MAI assistance approved


2 Publicity Cost -



Total 21,00,000

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Abroad event


( SHEFEXIL )

• Event Name – 8th CHEMSPEC, Europe

• Place – Cologne, Germany

• Event Date – 20th – 21st June, 2018







2 Publicity Cost -



Total 22,50,000

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Abroad event


( SHEFEXIL )

• Event Name – Interdye & Textile Printing Eurasia, 2018, Istanbul, 2018

• Place – Istanbul

• Event Date – 25th – 27st Oct., 2018







2 Publicity Cost -



Total 22,50,000

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Abroad event


( SHEFEXIL )

• Event Name – Hi Europe & Ni, Germany

• Place – Frankfurt, Germany

• Event Date – 27th – 29st Nov., 2018







2 Publicity Cost -



Total 22,50,000

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Abroad event


( SHEFEXIL )

• Event Name – 27th Dey + Chem,

• Place – Indonesia

• Event Date – 23rd – 26th Nov., 2018






1 Venue cost including organizing expenditure 13.25,000

2 Publicity Cost -



Total 13,50,000

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Abroad event


(SHEFEXIL)

• Event Name – Beauty World Middle East

• Place – United Arab Emirates

• Event Date – 8th – 10th May, 2018





S. No.

Heads MAI assistance approved


2 Publicity Cost -



Total 17,50,000

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viii) Inputs given by Council regarding FTAs to different Division of DoC.

We have sent Shefexil Product-wise inputs on various FTA Negotiations, which includes the

following:

Subject matter Replied to Shefexil on

Brief on inputs provided

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India-EU Broad-based Trade and Investment Agreement (FT-Europe-I Division)

20.032016 Covers details on which tariff lines of Shefexil India should provide and seek market access under India-EU BTIA.

Refer Appendix I, in this respect, which includes the report and annexures list product-wise comments

OM dtd. 27.03.2018, related to 3rd Meeting of Joint Working Group (JWG) between India and Iran held on 13-14 February, 2018 at Tehran, Iran

(Foreign Trade South Asia Division)

03.05.2018 Observations on trade and tariff data were provided in the reply. The reply was sent along with Annexures on trade and tariff data.

Refer Appendix II for copy of reply and Annexures sent on 03.05.2018.

Follow-up of the 22nd session of India-Russia Joint Working Group on trade and Economic Cooperation. (FT(CIS) Division)

25.04.2015 We had provided details on India’s current trade of Shefexil products with Russia, MFN rates applicable in Russia and GSP benefits available for Shefexil products. Such details provide scope for negotiating FTA with Russia.

Refer Appendix III for copy of reply and Annexures sent on 25.04.2018

Negotiations for a Trade Agreement with Peru and also for expansion of India- Mercosur PTA. The feasibility of a trade agreement with Ecuador and Colombia. (FT (LAC) Division)

04.07.2018 In order to provide information on seeking margin of preferences under the above mentioned negotiations, HIPL studied and compiled following details for each country viz. Argentina, Brazil, Paraguay, Uruguay, Peru, Colombia and Ecuador. 1) India’s export of Shefexil Products to Argentina,

Brazil, Paraguay, Uruguay, Peru, Colombia and Ecuador (at eight digit level)

2) India’s export of Shefexil Products to World (at eight digit level)

3) Import of Shefexil products by Argentina, Brazil, Paraguay, Uruguay, Peru, Colombia and Ecuador (at eight digit level) from India

4) Import of Shefexil Products by Argentina, Brazil, Paraguay, Uruguay, Peru, Colombia and Ecuador (at eight digit level) from World.

5) MFN rates applicable for Shefexil Products in Argentina, Brazil, Paraguay, Uruguay, Peru, Colombia and Ecuador (at eight digit level)

6) Tariffs preferences provided by Argentina, Brazil, Paraguay, Uruguay, Peru, Colombia and Ecuador to India under Global System of Trade Preferences

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*****

among Developing Countries (GSTP) 7) Tariffs preferences (Zero or Preferential duty

market access) provided by Argentina, Brazil, Paraguay, Uruguay, Peru, Colombia and Ecuador to its FTA member countries

8) Extent of Margin of Preference to be sought by India from these countries with reasoning.

Refer Appendix IV for copy of reply and Annexures sent on 04.07.2018

Documents

SHEFEXIL · 2020. 11. 16. · Page 1 of 54 SHEFEXIL i) Export/Import data for 10 years along with analysis of export trend Panel 2009- 10 2010- 11 2011- 12 2012- 13 2013- 14 2014-