Monthly Round-up – April 2021

Dear CLFMA Members & Industry Colleagues,

We had an eventful month with lots of action with the government and the industry stakeholders.
Let me briefly take you through the highlights of CLFMA’s activities amidst Covid 19 pandemic:

On 3rd April, 2021, CLFMA gave Representation– “Request for URGENT Intervention by Govt. of India to Allow DUTY FREE IMPORT of 12 Lakh Metric Tons (MT) Soybean Meal to safeguard Poultry Sector and other Livestock Farmers and Livestock Industry as a whole” to The Hon'ble Prime Minister of India, Shri. Narendra Damodardas Modi , with CC to Shri Narendra Singh Tomar, Hon’ble Minister of Agriculture and Farmers Welfare, Office of the Hon'ble Minister of Agriculture & Farmers Welfare, Ministry of Agriculture & Farmers Welfare, Government of India, Shri. Giriraj Singh, Hon'ble Minister of Animal Husbandry, Dairying & Fisheries, Ministry of Animal Husbandry, Dairying and Fisheries, Government of India,. Shri. Piyush Goyal, Minister for Commerce and Industry, Government of India, Smt. Nirmala Sitharaman, Hon’ble Finance Minister, Ministry of Finance, Shri. Atul Chaturvedi, Secretary (AHD), Department of Animal Husbandry & Dairying, Ministry of Fisheries, Animal Husbandry and Dairying, Government of India,. Shri. Sanjay Agarwal, Secretary, Agriculture, Co-operation & Farmers Welfare, Department of Agriculture, Cooperation & Farmers Welfare, Ministry of Agriculture & Farmers Welfare, Government of India,

On 8th April representations were given for Inclusion of “Animal Feed Manufacturing and Animal Feed Distribution” as essential services in Break the Chain for transmission of Covid-19 in Maharashtra State. to the Hon’ble. Chief Minister, Maharashtra State, Shri Ajit Dada Pawar, Hon'ble Deputy Chief Minister of Maharashtra, Shri Sunil Chhatrapal Kedar, Hon'ble Minister, Animal Husbandry, Dairy Development and Fisheries Development, GOM. Shri. Dattatray Vithoba Bharane, Hon'ble Minister for State, Textiles, Animal Husbandry, Dairy Development and Fisheries Development, GOM. and Shri. Atul Chaturvedi, Secretary AH & D, Department of Animal Husbandry and Dairying, GOI.

On 10th April, 2021 the Department of Animal husbandry & Dairying had consulted CLFMA OF INDIA to give comments about a proposal, which the Government had received to export Rice Bran Hi-fat quality from India, for which, CLFMA OF INDIA Requested government not to allow exports of Rice Bran from India, as the farmers and feed millers of Cattle and Fish sector will be affected badly. This representation was given to Dr. O. P. Chaudhary, Joint Secretary (NLM), Department of Animal Husbandry & Dairying and Mr.Vijay Thakere, Assistant Commissioner (Feed & Fodder),Feed & Fodder Unit (NLM Division), Department of Animal Husbandry and Dairying, Government of India,

On 12th April ,2021, CLFMA OF INDIA conducted an “Online Panel Discussion on Soybean and other Oilmeals Demand and Supply Outlook- Present & Future”. A Press release was given in the print media. Also, the online discussion was live on Facebook and YouTube

The main objective of the discussion was to discuss the prevailing raw material situation of Soybean in India as there was a sudden spurt in the prices of the soybean and soymeal, as it is the main ingredient of animal feed. The other purpose of this seminar was to provide a platform which encourages all poultry industry and other livestock industry players to show solidarity for representing the government in all matters

The panellists were Dr Davish Jain, Chairman, Soybean Processors' Association of India (SOPA), Dr.B.V.Mehta, Executive Director, Solvent Extractors’ Association of India, Mr. Bahadur Ali – IB Group and President of All India Poultry Breeders Association (AIPBA), Mr. B. Soundararajan - MD, Suguna Holdings and Former Chairman of CLFMA OF INDIA, Dr.B.M.Masthan Rao, Chairman, BMR Group, Dr.P.Krishnaiah, IAS (Retd.), Advisor, Shrimp Feed Manufacturers Association and Dr. Dinesh Bhosale – Regional Sales Director, AB Vista South Asia and Former Chairman of CLFMA OF INDIA .

The action points arrived out of this discussion are as follows:

 Govt statistics shows that, there is 30 lakh ton of soya availability for the feed industry and the largest consumer for both this industry is poultry and aqua;

 The prices of soya have gone up by 50% and the biggest culprit for this price increase is speculation by the NCDEX and is fuelled by social media, to ease this we should ask the govt. to allow a lesser quantity of import of soymeal to bring the sentiment down and cool the market ;

 The panic buying should be discouraged ;

 We have to approach the govt collectively on all these issues ;

 We have to approach jointly to SEBI for the purpose of regulating the NCDEX from doing speculations but move to real market and examine the controls we have to bring in .

Further developments about the Soya Issue are given below

On 15th April, 2021, CLFMA of India attended the stakeholders meeting with regard to the discussion of the “Draft of Prevention of Cruelty to Animal Bill,2021. The meeting was presided by Dr Sujit K. Dutta, Secretary, Animal Welfare Board of India, Faridabad, Haryana & Joint Commissioner, Dept. of Animal Husbandry & Dairying. As per the government’s request the presentation has been circulated to all the CLFMA Members for Comments and the comments which were received has been forwarded to the concerned government authorities

Further developments about the Soya issue:- on April 21,2021, CLFMA OF INDIA gave a representation to Securities Exchange Board of India (SEBI) Chairman Shri Ajay Tyagi, with a CC to Shri V S Sundaresan, Executive Director- Commodity Derivatives, Securities Exchange Board of India (SEBI) Market Regulation Department, requesting to regulate the excessive speculation of Soyabean trading by NCDEX, due to which the major raw material (Soybean) prices has increased sharply affecting the livestock Industry (Poultry, Cattle, Aqua), which caters to the livelihood (provides employment) to about 8.8 % of the population in India

Also on 23rd April 2021, CLFMA OF INDIA actively participated in the Interactive virtual meeting of Indian Livestock Key Stake Holders with Honourable Minister Dr. Sanjeev Balyan, Minister of State Animal Husbandry, Dairying & Fisheries Govt. of India and Dr. O. P. Chaudhary, Joint Secretary, Animal Husbandry, Dairying & Fisheries, Govt. of India

List of key stakeholders who attended the meeting were myself, Mr.Bahadur Ali- MD of IB Group (Rajnandgaon , Central India), Mr.Gulrez Alam- Director, IB Group (Rajnandgaon, Central India), Mr.G.B.Sondararajan- MD of Suguna Group (Coimbatore, Tamilnadu), Dr.Sandeep Karkhanis- MD of Noveltech Feeds India ( Mumbai), Mr.Gopal Reddy – Director, Sneha Farms ( Hyderabad), Mr.Sumit Surekha- MD , Shivshakti Agro ( Kolkata), Mr.Amit Saraogi – MD of Anmol Feeds ( Kolkata), Mr.Sameer Agarwal- MD of Shalimar Group( Kolkata), Dr.Saurabh Shekhar – MD , Nutreco India and Dr.Sujit Kulkarni – Director(Feed Additives) Nutreco India, MC member CLFMA

The main highlights of this meeting were:-

 On Thursday 22 April, soyabean for delivery that month ended at ₹7,410 a quintal, while May and June futures closed at ₹7,1727 and ₹ 7,070, respectively. NCDEX spot soyabean (Indore delivery) was quoted at 7,070 a quintal.

 Particularly on NCDEX, soybean futures have been hitting the upper ceiling of six per cent over the last few sessions resulting in CLFMA OF INDIA seeking Government action.

 The reason cited for this increase by players in the futures market is non-availability of soyabean stocks.

 Unprecedented bull run in NCDEX soyabean futures. Market rigged by speculators, with daily upper circuit. Unsupported by demand-supply fundamentals. Irrational prices disrupting physical trade. Stake holders requested immediate stern steps to check soyabean futures rigging,”

 The abnormal rise in soyabean futures has resulted the poultry and aquaculture sectors protesting against the increase in soymeal prices. The poultry sector, especially, has been demanding that it be allowed to import 12 lakh tonnes of soyameal duty-free to tame the rising prices. It has also sought to bring in soymeal derived from GMO (genetically-modifies soyabean).

 Both these demands are unlikely to be met, according to industry sources, who said that the poultry and aqua sectors demand can be met from within the country without any problem.

 The futures market is in the grip of speculators which is directly affecting physical trade. The current bull run on NCDEX is irrational as it is without any fundamentals. We have ample stocks of soyabean in the country.

In-pursuant of the above interaction with key stakeholders of Livestock industry and as per commitment by the Honorable Minister Shri. Dr.Sanjeev Balyan ( State Minister AH, Dairying, Fisheries) held a meeting with the Honorable Cabinet Minister Shri. Giriraj Singh (AH, Dairying, Fisheries), and Mr. Atul Chaturvedi, Secretary Dept. of AH & Dairying. Both Ministers also had a word with the Honorable Minister Shri. Narendra Singh Tomar, Minister of Agriculture & Farmers Welfare, Govt. of India. Shri. Atul Chaturvedi communicated Commerce Secretary & Food Secretary to restrict future trading of NCDEX and take pre-emptive measures to prevent hoarding.

On 26th April 2021, First meeting of the subcommittee for preparation of guidelines of Registration and Certification of Antibiotic-free aquaculture inputs and to recommend penal action on detection of antibiotic residues in farms, hatcheries and aquaculture inputs-Reg was conducted by Coastal Authority of India (CAA), Chennai and this meeting was attended by Mr. Divya Kumar Gulati, Dy. Chairman, CLFMA OF INDIA, Dr Shivaji Dey, CLFMA OF INDIA Member and Mr. Ashok Kalyanam, CLFMA OF INDIA Member. It was more of an introductory meeting among the sub-committee members. CLFMA OF INDIA has raised the issue of having a uniform guideline in ASPADA, FSSAI and CAA and suggested the same to the CAA. Authorities.

On 26th April 2021 we had a virtual meeting with NCDEX on the topic - Understanding price risk management using derivatives market. The speakers of the session were Mr. Kapil Dev - Chief Business Officer, NCDEX, Mr. Arun Yadav - SVP – Products,NCDEX, Ms. Bhupalini Kodati - Senior Manager – Products. The Chairman welcomed the speakers and the participants. This was conducted only for MC members to understand, if this subject can be taken to the larger audience. Around 26 members including the past presidents attended the meeting. The vote of thanks was given by Ms. Chandrika Venkatesh, Executive Director, CLFMA OF INDIA and she summarized the meeting. The major highlights of the meeting are as follows: -

 Presentation on Hedging & Price Risk Management detailing about viz what is futures contracts and hedging using futures markets? Risks in commodity markets, Mitigation of price risk, How To limit losses by way of hedging? Advantages of hedging, Global Agri Futures perspective, Options etc. This was given by Ms. Bhupalini Kodati

 Q & A Session was taken up by Mr. Kapil Dev and Mr. Arun Yadav. They Clarified about Price movements and its risks which are market driven as the market is supreme

 About Futures & Derivative markets for risk management

 Advantages of futures market and their regulations/p>

They also proposed to take more sessions for our CLFMA OF INDIA members, which is under discussion.

On 27th April,2021, virtual teams meeting was held to discuss about the Non- Renewals of the CLFMA OF INDIA membership, it was decided that the proposer and the seconder of the member companies should be contacted, further to this the proposer and seconder names have been circulated to all the Managing Committee Members and I request all the managing committee members to take it seriously and help us in membership renewal process.

Further to the circulation of the presentation on “Milk and Cattle Feed Quality” by Schreiber Dynamix Dairies Pvt. Ltd. to all CLFMA OF INDIA members on 29th April 2021, CLFMA OF INDIA conducted a virtual meeting along with Schreiber Dynamix Dairies Pvt. Ltd..Mr. Laxman Kolambe Team Advisor, Veterinary Services co-ordinated the meeting. The other speakers from Dynamix Dairies were Mr. Dimitri Humbert, Mr. Neeraj Singhania, Mr. Partha Tripathy, and Mr.Pravin Awati . Chairman welcomed all the speakers and participants. Around 26 participants attended the meeting. From CLFMA OF INDIA Myself, Mr. Divya Kumar Gulati, Dy. Chairman, Mr. Suresh Deora, Hon. Secretary, Mr. S.V. Bhave, Past Chairman, Dr Dinesh Bhosale, Past Chairman, Dr Prashant Shinde, MC Member and Chandrika Venkatesh, Executive Director attended the meeting.

The objective of the meeting was to discuss about “Milk and Cattle Feed Quality” and the milk contaminants viz Antibiotics, Aflatoxin and Melamine were discussed in detail. The highlights of the meeting were:

 To make this as an eminent platform to discuss all issues related to dairy and cattle feed and have review meetings in an interval of 2 months;

 CLFMA OF INDIA to suggest the dairy plants to be included into this dairy platform;

 CLFMA OF INDIA and Dynamix Dairies to come up with a Cattle Feed Raw material test procedure book so that it can be distributed to all the cattle feed manufacturers;

 To conduct a seminar in June regarding this topic.

The soft copy of the LFT issue of Jan 2021 to March 2021 has been circulated to all members, we apologise for not sending the hard copies due to COVID pandemic printing restrictions and postal movements

Also, I would like to solicit your valuable inputs and suggestions to improve further and achieve the newer heights.

With warm regards,
For CLFMA OF INDIA,
Neeraj Kumar Srivastava
Chairman
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