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Time of India
05-08-2025
- Politics
- Time of India
Cotton export scam: Centre acts against 5 certifiers in state
Bhopal: A suspected scam involving the export of ordinary cotton falsely certified as organic has surfaced in the state, prompting the central govt to initiate action against five certification agencies. Responding to a question by Congress leader Digvijaya Singh in the Rajya Sabha, the central govt confirmed on Aug 1 that five certification bodies had faced punitive action over irregularities in the certification of organic cotton. Singh asked about the number of cases of organic cotton scam which have come to light so far in Madhya Pradesh. The number of FIRs which have been registered against certification agencies in the case of export of ordinary cotton in the name of organic cotton in the state, and the action that has been taken against them so far and the number of certification agencies that have been reinstated, out of those certification agencies whose registrations were cancelled, and the basis for their reinstatement. The minister of state in the ministry of commerce and industry, Jitin Prasada, stated in a written reply that the system for organic certification under National Programme for Organic Production (NPOP) involves a third-party certification system of organic processes and organic produce, which was certified across the supply chain by a certification body (govt or private). Cotton is covered under NPOP only till production level. Thereafter, the post production process including ginning, processing etc is done under private certification, and not covered under NPOP. In 2022, due to irregularities in certification of organic cotton, accreditation of two certification bodies was terminated while two certification bodies were suspended. In 2024, one more certification body was suspended for one year, for irregularities in the certification operations, including certification of organic cotton. With respect to the two terminated certification bodies, the said certification bodies are not in existence, under NPOP. With respect to the two certification bodies suspended in 2022, their period of suspension was for 6 months and 12 months. After the completion of this period, and complying with the accreditation requirements under NPOP, they were reinstated in 2024. In case of the certification body suspended in 2024, the period of operation of the suspension is for a period of 1 year, with effect from Oct 1, 2024, which is yet to be over, thus the said certification body is not in operation. The issue was also raised by Leader of Opposition in the state assembly Umang Singhar while speaking after the chief minister's address. In a passing reference, the LOP said if India wants to establish a strong global identity and maintain its credibility abroad, then the quality of our exported goods must meet international standards. He raised concerns over quality issues, citing frequent rejections and multiple scams ranging of crores and urged the chief minister to pay attention to these irregularities.
New Indian Express
11-07-2025
- Business
- New Indian Express
Karnataka Coffee Board tapping into specialised, customised coffee market
BENGALURU: Besides steps to increase coffee production, Karnataka is now taking the lead in the country in harvesting and brewing specialised and customised coffee, based on the taste and demand of international and domestic consumers. This has come at a time when India is shifting its focus on strengthening its blends and quality, while Brazil continues to lead in coffee production. To tap this developing market, farmers and brewers from the state recently held a meeting with officials from Coffee Board of India, ministry of commerce and industry and ministry of external affairs. They discussed how embassies can be used to propagate specialised coffee. 'While we are trying to understand the international consumer market to promote specialised and custom-made coffee, we are also shortlisting 15-18 countries where pilot studies can be taken up to sell these coffees on a large scale,' Coffee Board Chairman MJ Dinesh told The New Indian Express. There are many types of coffee -- wine coffee, cocoa coffee, vanilla coffee and others -- that are gaining popularity. This is apart from region-specific coffees like Arakku, Bramhagiri and Pushpagiri. Youngsters in the business (the second or third generation of coffee harvesters and brewers) have studied the market trends and started improvising traditional coffee. Some of these experiments have gained popularity with customers and the Board is looking to expand it further. Farmers Produce Organisations (FPOs) have also realised the potential and have come forward to partner.
Hindustan Times
10-07-2025
- Business
- Hindustan Times
SEZ Amendment Rules 2025: Targeted and swifter approach
The recent Special Economic Zones (Amendment) Rules, 2025 (notified by the ministry of commerce and industry on June 3, 2025) introduces targeted relaxations and operational reforms, with the objective to address the specialised needs of semiconductor and electronics component manufacturing sectors. Amendment (Representative file photo) Due to its functionality in modern equipment, it is expected that the semiconductor industry shall increase investment in semiconductor and electronic parts manufacturing. In 2021, the Indian Government introduced the $10 billion Semicon India Programme to strengthen the domestic manufacturing of semiconductors, supporting display fabrication and building a comprehensive semiconductor ecosystem. Thus, certain ease of norms has been extended specially to promote this critical sector by virtue of amendments to the SEZ Rules via the 2025 Amendment Rules. The key amendments are: Reduced land requirement for semiconductor SEZs--The amendment introduces a sector-specific relaxation by reducing the minimum land requirement for SEZ exclusively set up for the manufacturing of semiconductors or electronic components to 10 hectares. This is a pivotal change from the earlier blanket requirement of 50 hectares for manufacturing SEZ or 25 hectares in some states. The accompanying explanation further broadens the scope to include a wide array of electric components which are – 'display module sub-assembly, camera module sub-assembly, battery sub-assembly, various types of other module sub-assemblies, printed circuit board, li-ion cells for batteries, mobile and information technology hardware components, hearables and wearables.' This measure will facilitate the participation from smaller players and regional investors Net Foreign Exchange (NFE) computation for semiconductor units and developers. The amended rules allow the value of goods received and supplied on a FOC basis to be included in NFE calculations for units providing manufacturing services. This becomes a facilitative change given that, in the semiconductor manufacturing sector, typically components are imported by overseas clients and the SEZ unit is paid only for the processing or assembly services. Relaxation on encumbrance-free land. The strict bar against encumbrances for declaration of an area to SEZ has been relaxed. Such bar would now not apply to in instances where the land is mortgaged to or leased by the central or state government, or the respective agencies. Table Reduction in minimum land requirement for textile SEZs in Gujarat. The amendment to replaces the minimum area requirement for the textiles and articles of textiles sector in Gujarat from 20 hectares to 4 hectares. The SEZ Amendment Rules 2025 are poised to benefit a broad range of companies operating in the semiconductor and electronics manufacturing sectors, as well as textile enterprises in Gujarat. The new rules specifically relax land requirements and offer greater operational flexibility, making it easier for manufacturers and supply chain participants in these sectors to establish and expand SEZ units. Companies engaged in the production and assembly of semiconductors, display modules, battery assemblies, printed circuit boards, IT hardware, and related components are among those that stand to gain from these regulatory changes. The amendment aligns with the government's strategic drive to position India as a global manufacturing hub, reduce dependency on imports, and integrate more deeply into global value chains The government has publicly identified two companies as direct beneficiaries through SEZ approvals under the amended rules: Micron Semiconductor Technology India Pvt Ltd (MSTI): Approved to set up a 37.64-hectare semiconductor SEZ in Sanand, Gujarat, with an investment of ₹ 13,000 crore. 13,000 crore. Hubballi Durable Goods Cluster Pvt Ltd (Aequs Group): Approved for an 11.55-hectare electronics components SEZ in Dharwad, Karnataka, with an investment of ₹ 100 crore. These approvals underscore the immediate impact of the amendments in facilitating high-capital, large-scale investments by prominent industry players. The 2025 Amendment introduces commercially relevant reforms to the SEZ framework, particularly targeting the semiconductor and electronics sectors, with an emphasis on flexibility in land norms, cross-border manufacturing models, and NFE calculations. The changes aim towards reduction of entry barriers and enable more sophisticated structuring of supply and distribution arrangements. The government's decision to proceed with targeted amendments to the SEZ Rules in 2025, while a comprehensive DESH Bill or a complete overhaul of the SEZ Act remains pending, reflects an inclination toward agile regulatory intervention, while a broader legislative reform is pending. The amendments are designed to address immediate operational challenges, especially those faced by the semiconductor and electronics industries—by enabling greater flexibility, reducing entry barriers (such as land requirements), and streamlining SEZ operations. This approach allows for swifter and more tailored solutions to sector-specific needs, rather than waiting for the protracted process associated with passing new legislation or implementing a wholesale restructuring of the existing law. This article is authored by Stella Joseph, partner and Aradhya Singh, advocate, Economic Laws Practice.
Mint
20-05-2025
- Business
- Mint
India's core sector output grows 0.5% in April, the lowest in eight months
New Delhi: The output of eight core infrastructure sectors, which account for two-fifths of India's industrial output, expanded by 0.5% annually in April, its lowest in the last eight months. It was recorded at 6.9% in April 2024, while the growth in March 2025 was revised from 3.8% to 4.6%. Only two of the eight core industries—coal and natural gas—reported a sequential rise in production during April, according to the provisional data released by the ministry of commerce and industry on Tuesday. Core sector output contributes 40.27% to the Index of Industrial Production (IIP). To be sure, India's industrial production rebounded in March, recovering from a six-month low in February, according to provisional data released by the ministry of statistics and programme implementation (MoSPI) last month. Industrial output rose 3% year-on-year in March, slightly above the 2.9% growth in February. The previous low, recorded in August 2024, was zero. Interestingly, of the eight core industries, only coal and natural gas registered a month-on-month increase in production in April. Coal output rose by 3.5% annually in April, up from 1.6% growth registered in the previous month. Natural gas production rose 0.4%, compared to a contraction of 12.7% in March. Production in three sectors -- crude oil, refinery products and fertilisers -- contracted in April. Crude oil production contracted by 2.8% annually in April, compared to a 1.9% contraction in March. Refinery production contracted 4.5% in April, against a 0.2% growth registered in the previous month. Fertiliser production contracted 4.2%, compared to an 8.8% growth in March. Production of steel, cement and electricity reported growth in April, albeit slower than the previous month. During April, steel production reported a 3% growth, cement 6.7%, and electricity 1%. Interestingly, India's manufacturing sector expanded at its fastest pace in 10 months in April, driven by strong demand and a sharp rise in output. The HSBC India Manufacturing Purchasing Managers' Index (PMI), compiled by S&P Global, rose to 58.2 in April from 58.1 in March and 56.3 in February. The index was at 57.7 in January and 56.4 in December. A reading above 50 indicates expansion, and below 50 a contraction. "The core sector growth at 0.5% is quite disappointing, even though the base effect was strong," said Madan Sabnavis, chief economist at the Bank of Baroda. "The infrastructure-based industries, cement and steel, had registered growth of 6.7% and 3% respectively. Construction activity has helped in keeping output ticking," he said. "Electricity production increased by 1%, which was affected by the high base of 10.2% last year. May was otherwise an exceptionally hot month where household consumption increased," he added.
