ITC’s Puri hopes food export bans are short-lived once supply stabilises

Sanjiv Puri, ITC chairman

Sanjiv Puri, ITC chairman

By Menaka Doshi

India’s choice to ban exports of wheat and rice needs to be short-lived as soon as meals provide stabilises within the nation, mentioned Sanjiv Puri, chairman of ITC Ltd.

The corporate, a significant wheat exporter, noticed its agriculture enterprise income decline 25% within the April-June quarter, hit by the export bans, based on its quarterly earnings presentation.

Puri spoke to Bloomberg Information on the sidelines of the B-20 Summit in New Delhi. The excerpts are calmly edited for readability:

Outlook on India economic system

Companies which are listed to Indian consumption are pretty resilient. Something that’s extra built-in with world provide chains, whether or not it’s exports or sure commodities, there may be volatility and a few weak spot there. What we’re rising at with out exports firing is a good quantity.

The impression on consumption has been extra inflation-led and inflation has really been largely imported. The second issue is local weather emergency as a result of it’s led to crop failures. As inflation is moderating the newest Nielsen numbers additionally present some inexperienced shoots of choose up within the rural economic system. What’s to be monitored is the El Nino bit and the worldwide dynamic continues to be unsure, however because the inflation is cooling off consumption is choosing up.

Affect of export bans

It’s impacting us. As companies now we have to be additionally accountable. Folks should have meals within the nation. So now we have to know that and folks have to have the ability to afford it. These are realities we should acknowledge.

I clearly hope that it’s brief lived. And what’s going to allow us to export is our crops doing nicely, our agriculture producing greater than is required in order that now we have the surpluses. As a accountable company that is what I want to work with the farming group on and see how we are able to enhance the produce.

Viability of agri enterprise

My focus at this level of time is on worth addition (somewhat than pure output development that would impression costs and total profitability). For instance, we inaugurated the spices facility and we are actually going to inaugurate the nicotine spinoff merchandise facility.

That’s the trail we’re on — constructing capability in medicinal and fragrant crops, horticulture and aquaculture. These are the areas of worth add we’re specializing in as an organization. And that is extra worth accretive than the commodity enterprise in any case.

First Printed: Aug 29 2023 | 11:45 AM IST