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In a bid to boost sales volume for farmer-producer organisations (FPOs), concerns have been raised over high shipping costs hindering small-sized orders delivery to consumers. The delay by India Post and lack of financial support have also contributed to the underutilisation of FPOs' potential. The proposed policy on FPOs aims to address these issues, with calls for government subsidies or bulk orders through India Post to reduce shipping costs. Talks are ongoing with India Post to facilitate direct connections between FPOs and consumers through the ONDC platform. The Operation Green scheme offers subsidies on freight costs for transportation of vegetables, highlighting the need for a comprehensive government approach to support FPOs and double farmers' income. 
Former secretary in the agriculture and food ministries, T Nandakumar, believes that the PM-Kisan scheme is a game changer and will endure regardless of the ruling government. He emphasizes the importance of income support for farmers, separate from food security, to increase their earnings. Nandakumar acknowledges the challenges of balancing higher prices for farmers with managing food inflation. He views income support as a welfare measure rather than a tool for agricultural growth. Regarding export policies, he criticizes the inconsistency and suggests that any restrictions should be temporary. Overall, Nandakumar's insights shed light on the complexities of supporting farmers and ensuring their financial stability in the agricultural sector.
In a recent report released on Tuesday, official data revealed that Wholesale Price Index (WPI)-based inflation in India rose to a 13-month high of 1.26 per cent in April 2024, up from 0.5 per cent in March 2024. This increase was attributed to spikes in both food and fuel inflation, with WPI inflation standing at (-) 0.8 per cent in April last year. Economists noted that while WPI may not impact Monetary Policy Committee decisions, it does reflect the pricing power of companies. The uptick in WPI inflation was primarily driven by fuel and power, food, and core items, with projections indicating a further rise in May 2024 before peaking in June 2024. Despite expectations of a normal monsoon boosting agricultural production, adverse base effects are anticipated to result in higher WPI inflation over the next two months.
India is facing uncertainty with the India-Middle East EU Economic Corridor (IMEC) project due to the deepening crisis in West Asia, with sources suggesting that Saudi Arabia may refuse to participate until the regional situation is resolved. The ambitious 4,800 km trade route, announced in 2023, aims to enhance economic cooperation and reduce greenhouse gas emissions. While India is considering starting work on the India-UAE leg of the corridor, diplomatic hurdles remain as a significant portion of the route passes through Saudi Arabia, which may delay the project further. External Affairs Minister S Jaishankar expressed concern over the delay but reiterated the commitment of all parties involved in the agreement. The IMEC is seen as a strategic counter to China's Belt and Road Initiative, although its progress may be hindered by ongoing geopolitical tensions in the region.
In a significant shift in the aviation industry, IndiGo has seen a remarkable increase in international flights out of Bengaluru by over 57 per cent year-on-year, positioning itself as the leading carrier in the region. Bangalore International Airport Ltd (BIAL) has reported that Indian carriers are set to expand their international networks from Bengaluru in the coming months, with Air India and IndiGo spearheading the growth. Additionally, Emirates has emerged as the largest airline in terms of seat deployment from Bengaluru. The surge in international traffic has been evident, with destinations like Dubai, Singapore, Doha, Bangkok, and Abu Dhabi being the top choices for travelers. Furthermore, Australian carrier Qantas has announced an increase in flights between Sydney and Bengaluru, catering to the strong demand for travel between the two countries.
The Australian Bureau of Meteorology (BoM) has issued a "La Nina watch" with early signs indicating the potential formation of the weather event later this year, which could bring rains and floods to Asia, including India. The BoM also stated that neutral conditions of the El Nino-Southern Oscillation (ENSO) will persist until at least July 2024. However, the development of a positive Indian Ocean Dipole (IOD) has stalled, which could have helped India receive more rains during the southwest monsoon. The Climate Prediction Center (CPC) in the US predicts a transition from El Nino to ENSO-neutral in the coming months, with a possibility of La Nina developing in June-August or July-September. The emergence of El Nino in June 2023 has led to record global sea surface temperatures, while the potential development of a positive IOD could impact India's monsoon performance.
The US State Department has issued a warning to India regarding potential economic sanctions for any entity engaging in business deals with Iran, following India's signing of a 10-year agreement to operate the Chabahar port in Iran. The US emphasized that no exemptions would apply, indicating a shift in stance due to Iran's increased role in the West Asia crisis. The Chabahar port is seen as a crucial hub for the International North South Transport Corridor, connecting India, Iran, Afghanistan, and other countries. The deal, signed by Indian Ports Global Ltd and the Port and Maritime Organisation of Iran, involves investments of $120 million from IPGL and $250 million in debt. The US's firm position on sanctions reflects concerns over Iran's actions in the region, with sources attributing the change to the new agreement between India and Iran.
100Unicorns, a part of Venture Catalysts Group, has launched its second accelerator fund, 100Unicorns Fund II, with a target size of $200 million to propel over 200 startups into the billion-dollar club within a decade. The fund will deploy a portion of its investments outside India and aims to become the Y Combinator for Indian startups, focusing on emerging sectors like space-tech, biotech, electric vehicles, and cleantech. Managing Director Apoorva Ranjan Sharma highlighted the growth of the Indian startup ecosystem, with a 15-fold increase in funding between 2015 and 2022. The first fund, 100Unicorns Fund I, invested in 145 companies and has rebranded to 100Unicorns to align with the goal of working with 10% of the expected one million startups and 1,000 unicorns in India by 2030, contributing significantly to the economy.
Celcius Logistics, a leading cold-chain solutions provider, has secured ₹40 crore in a pre-series B funding round led by IvyCap Ventures, with participation from Mumbai Angels and Caret Capital. The platform, which connects shippers and transporters for cold chain requirements, aims to strengthen its transportation management system (TMS) and warehouse management system (WMS) with the fresh capital. Founder and CEO Swarup Bose highlighted the platform's role in addressing operational inefficiencies in the Indian cold-chain ecosystem, particularly in the food and pharma industries. With 4,000 vehicles, 107 cold storage facilities, and a client list including Zomato and Reliance Pharma, Celcius Logistics is poised to expand its reach to over 500 cities within a year. IvyCap Ventures expressed confidence in the platform's potential to revolutionize the cold supply chain industry.
Foreign banks are warning of a 7.9 per cent year-on-year increase in food inflation in April, driven by soaring prices of vegetables and cereals. The Reserve Bank of India is expected to maintain policy rates until September due to strong economic growth and lower core inflation. Experts predict consumer price index inflation to rise to 5-5.1 per cent in May from the previous month's 4.83 per cent. Despite April's CPI inflation moderating to 4.8 per cent, food inflation remains a concern, with double-digit increases in vegetable and pulse prices. Analysts suggest that the RBI will likely hold off on rate cuts until the fourth quarter of 2024, with risks leaning towards a cut in December. The rise in food prices, particularly vegetables, is hindering efforts to reduce headline inflation, prompting a cautious approach from the monetary policy committee.
