Quick commerce sector soars as Millennial and Gen Z homes drive growth

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May 6, 2024

Just two years ago, the idea of quick commerce or instant deliveries was often dismissed with laughter. Some even argued that consumers had no need for products to arrive in 10-15 minutes.

Today, quick commerce is rapidly gaining traction among many millennial and Gen Z households. Companies have extended their services beyond groceries, now delivering items ranging from fans and T-shirts to jewellery and iPhones.

In a recent report, Goldman Sachs highlighted that Blinkit‘s implied valuation, estimated at $13 billion, has surpassed that of parent company Zomato‘s core food delivery business, underscoring the swift expansion of this sector. While primarily concentrated in metro areas, quick commerce is gaining traction in cities like Vizag, Nagpur, Kochi, Jaipur, and Lucknow, according to executives at Swiggy Instamart and BigBasket.

Seshu Kumar Tirumala, chief buying & merchandising officer at BigBasket, stated that half of the new consumers that the company has acquired in the last year are all pure play rapid commerce clients. These customers frequently make spontaneous purchases and end up making 4–15 transactions each month from the platform.

Continue Exploring: BigBasket and Flipkart accelerate delivery services to compete with quick-commerce rivals

Swiggy, poised for an IPO, has witnessed Instamart’s growth in non-metro areas like Jaipur and Kochi more than double over the past year. “With a diverse range of products, we’re experiencing strong traction in both metros and non-metros,” stated Phani Kishan, CEO of Swiggy Instamart.

Continue Exploring: Swiggy merges Swiggy Mall with Instamart to expand quick commerce offerings beyond groceries

Analysts suggest that a portion of grocery spending in the top 7-8 cities might be shifting from local kirana stores to quick commerce platforms.

“Incremental purchases alone cannot justify the growth of quick commerce. Some parts of offline purchases and scheduled online deliveries have shifted to the segment. The platforms are also attracting sales from impulse purchases that would otherwise go to kirana stores,” explained Satish Meena, an advisor at market research firm Datum Intelligence.

Continue Exploring: Quick-commerce giants grab 30-50% of FMCG sales, kirana stores witness slowdown

As platforms such as Zepto, Swiggy Instamart, and Blinkit diversify into categories like beauty and personal care (BPC), toys, electronics, and stationery items, a portion of e-commerce sales is inevitably affected. Currently, non-grocery items constitute approximately 15%-20% of quick commerce purchases.

Continue Exploring: Quick commerce platforms Blinkit and Zepto expand into e-commerce, targeting fashion, beauty, electronics, and more

“If consumers can obtain a toy or a BPC item instantly through a quick commerce platform, they won’t wait for Amazon or Flipkart to deliver it,” explained Meena. “That’s why players like Flipkart are now venturing into the quick commerce model.”

“Consumers are ordering everything, from FASTags to air purifiers,” said Kishan.

As of FY24, Goldman Sachs approximates the gross order value (GOV) of the online grocery market to be around $11 billion. Within this, quick commerce already constitutes 50%, or $5 billion. Q-commerce platforms have also managed to offer products at a discount of about 10%-15% compared to local kirana stores, granting them a competitive advantage. “Given the scale of platforms such as Blinkit, they are able to secure pricing and sourcing advantages from manufacturers,” noted analysts at the firm.

“We aim to be an appealing choice even when compared to the top discount grocers in the offline market. If we can offer consumers better prices and 10-minute deliveries, why wouldn’t they choose Zepto?” remarked co-founder and CEO Aadit Palicha previously.

Quick commerce has the potential to represent 5%-6% of a household’s grocery expenditure in terms of wallet share.

Continue Exploring: D2C brands shell out 30-45% commission for quick-commerce platform listings

Foodtech startup Poshn secures $4 Million in pre-series A round

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May 6, 2024

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Shashank Singh and Bhuvnesh Gupta, Co-Founders, Poshn

Poshn, a pioneering food-tech startup dedicated to streamlining the fragmented food supply chain, has secured $4 million in equity and $2 million in debt during a pre-series A funding round. Led by Prime Venture Partners and Zephyr Peacock India, this investment will empower Poshn to establish the most extensive distribution network within the food ecosystem.

With this latest funding round, the company founded by Shashank Singh and Bhuvnesh Gupta has raised approximately $8 million in equity since its inception in 2020.

Poshn operates as a comprehensive food-tech supply chain company, adopting an integrated strategy to enhance effectiveness and efficiency across the entire food value chain. This approach encompasses various phases, including food processing units, wholesale buyers, institutions, general trade, and retailers.

The startup plans to utilize the fresh funds to further develop its innovative stack of solutions, addressing the existing gaps in the system. Additionally, it intends to expand its business to global markets, engaging in import/export activities focused on profitable categories in Southeast Asian and Middle Eastern countries.

Continue Exploring: Poshn unveils innovative tech platform, set to transform $800 Billion food and agro trading industry

Regarding the latest funding round, Shashank Singh, Co-Founder of Poshn, remarked, “Poshn has solidified its presence in the wholesale segment over the past three years. With the support of our investing partners and the injection of fresh equity, we are strategically advancing both forward and backward in the chain. Our aim is to penetrate foreign/export markets aggressively within the next 12 months, all while maintaining profitable growth.”

Over the last three years, Poshn has achieved remarkable growth, maintaining profitability along the way. The company’s revenue has surged six-fold from FY22 to FY24. Poshn stands out as one of the few startups that have achieved EBITDA profitability while sustaining a strong growth trajectory. Since its inception, the startup has established a presence in more than 16 states across India. In 2022, it secured $4 million in equity during a seed round led by Prime Venture Partner and Zephyr Peacock. Furthermore, Poshn has formed partnerships with Banks & NBFCs to fulfill its debt requirements, with notable collaborators including ICICI Bank, Alteria Capital, UCIC, Northern Arc, Blacksoil, and Capsave.

Prime Venture Partners commented, “Poshn has emerged as a trailblazer in prioritizing the supply aspect, effectively addressing the B2B food value chain. With a consistent focus on the bottom line, the company has achieved impressive returns on capital employed (ROCE). Poshn aims to deepen its presence in the supply chain and explore full-stack vertical integrations to enhance its offerings further. We anticipate Poshn to become a benchmark company in its category in the forthcoming years, and we are thrilled to have been their partners from the outset.”

Throughout its journey, Poshn has developed solutions aimed at enhancing efficiency in the supply chain, encompassing user onboarding, document collection and verification, and ledger matching. In the upcoming phase, the company will pursue integration both forward and backward in the food value chain to unlock additional efficiencies. This includes capacity planning, utilization optimization, and establishing direct connections with retailers.

Bhuvnesh Gupta, Co-Founder, remarked, “Poshn prides itself on maintaining the highest levels of operational and capital efficiency, not only within the food tech domain but also across various B2B segments. With the infusion of fresh capital and trust, we are poised to explore new horizons while upholding our commitment to efficiency.”

Continue Exploring: Poshn aims big: Targets INR 1100 Crore sales in FY24, doubling current figures

The food supply chain market is valued at over USD 800 billion and is highly fragmented on the supply side. This fragmentation leads to inefficiencies caused by numerous intermediaries or middlemen, inadequate capacity planning, unpredictable demand, and a lack of technological integration. Poshn is committed to bridging these gaps through innovative technology solutions.

“Poshn uses technology to streamline & organise India’s fragmented food value chain. Poshn’s platform is popular among both buyers and sellers because it provides easy access to high-quality products at cheap costs. “We are delighted to collaborate with Shashank & Bhuvnesh,” said Mukul Gulati, Managing Partner of Zephyr Peacock India.

UP govt mulls extending bar hours in Noida and Ghaziabad to boost nightlife and revenue

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May 6, 2024

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In a bid to boost nightlife and bolster the state’s excise revenue, the Uttar Pradesh government has established a five-member committee tasked with determining whether to extend curfew hours for bars in Noida and Ghaziabad.

During a meeting with the excise department on Friday, the Noida restaurant owners’ association requested permission for bars to operate until 4am, as they are currently permitted to stay open only until 1am.

Subodh Kumar, the district excise officer in Noida, stated that the committee tasked with reviewing bar timings was formed by excise commissioner Adarsh Singh. Its members include Jogendra Singh, the joint director of statistics, and Alok Kumar, the deputy excise commissioner, among others.

Continue Exploring: Tasmac unveils new budget-friendly brandy ‘Veeran’, plans to introduce 12 more affordable liquor brands

“The NCR comprises the cities of Noida & Ghaziabad, and the per capita income as well as economic activity of the population are similar to those of other NCR cities. In this case, it is critical for the excise department to consider new revenue streams.” The commissioner’s letter directed the committee to provide a report within 15 days.

During the meeting, restobar owners conveyed to the excise department officials that it was imperative for bar timings in Noida to synchronize with those in cities such as Delhi and Gurgaon.

Varun Khera, president of the Noida chapter of the National Restaurant Association of India, said, “We proposed that bars in Noida should have the option to remain open until 3-4am at the very least, akin to the practice in Delhi and Gurgaon, where the nightlife has significantly evolved.”

In May 2022, the Delhi government extended bar hours by two hours until 3am, subject to the payment of a license fee. Meanwhile, in Gurgaon, bars have the option to operate round the clock upon obtaining the necessary license.

Khera suggested that extending operating hours would cater to individuals looking to relax after completing a night shift. “Noida boasts numerous 24×7 offices. Currently, stringent regulations on late-night gatherings compel residents to journey to Gurgaon or Delhi. By adjusting these hours, not only will it allow people to dine at bars, but it will also substantially boost government revenue,” he emphasized.

Committee members emphasized the importance of ensuring that the adjusted timings do not adversely affect law and order.

“We are currently examining the proposal to extend bar hours by a few hours. However, any extension will be thoroughly evaluated to prevent any potential law enforcement challenges,” Kumar stated, noting that similar measures were also under consideration for Ghaziabad.

Continue Exploring: Haryana takes bold step as first state to prohibit plastic bottles for locally produced liquor

As a strategy to increase revenue, the excise department is also considering issuing licenses for food and beverage establishments within IT parks.

“Once the Noida airport becomes operational by the end of this year, we anticipate a more dynamic nightlife in the NCR city. With this in view, we are preparing to grant licenses for food and beverage services in IT parks that operate around the clock,” Kumar elaborated.

The restaurant association has also urged for a unified portal to streamline the licensing process. Currently, obtaining NOCs entails coordination with multiple departments including the Noida Authority, police, fire, and food safety departments.

“The implementation of a unified portal will streamline the process of engaging with different departments,” stated the excise official.

Sunflower oil refiners to see 8-10% volume decline in FY25, operating margins expected to rebound: CRISIL

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May 6, 2024

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Indian refined sunflower oil volumes are anticipated to experience an 8-10% decrease in FY25 due to a downturn in sunflower oil demand.

As per a report by CRISIL Ratings, domestic consumers have returned to soybean oil after the prices have declined following a good soy harvest.

Despite this shift, the report underscores that sunflower oil refiners are poised to see a 50-60 basis points expansion in profitability. This growth can be attributed to stable prices, effective hedging policies, and the government’s pledge to maintain duty-free imports.

Continue Exploring: India’s sunflower oil imports skyrocket by 51% in March, pushing palm oil to lowest levels since 2023

Director of CRISIL Ratings Jayashree Nandakumar stated, “With an excellent harvest, the cost of soybean oil is likely to correct by USD 100 per tonne on-year and be on par with sunflower oil in fiscal 2025. Sunflower oil volume will drop from 32 lakh tonne in fiscal 2024 to 28–29 lakh tonne in fiscal 2025 as a result of the consumer shift towards soybean oil, although it would still be greater than the historical average of five years through fiscal 2024.”

Despite the projected decrease in volumes, the report indicates that refined sunflower oil prices are poised to remain stable. This stability is attributed to elevated shipping and freight expenses amidst the prevailing geopolitical uncertainties in the Middle East.

“Despite the growth slowdown, refiners’ profitability is expected to rise by 50–60 basis points due to favourable spreads brought on by robust demand and minimal price volatility. To further reduce negative price risks, refiners have put in place strong hedging procedures,” according to CRISIL Ratings Associate Director Rishi Hari.

In the Indian edible oil market, palm oil holds the largest share, accounting for roughly 40 percent of total volumes, trailed by soybean oil and sunflower oil, which claim shares of 20 percent and 15 percent respectively. The demand for sunflower oil is closely intertwined with the pricing dynamics of its alternatives, particularly palm oil and soybean oil.

India possesses substantial sunflower oil refining capacities and relies on imports for over 95 percent of its crude sunflower oil needs. Although refined sunflower oil is primarily consumed domestically, its price fluctuations are heavily influenced by the movement of imported crude oil prices.

Continue Exploring: India’s oilmeal exports hit record high in fiscal year 2023-24

TABP hits sales of INR 172 Cr in FY24, aims for INR 500 Cr in the next 2 years with an affordable pricing strategy

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SnackTeam

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May 6, 2024

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Prabhu Gandhikumar, Founder, TABP Snacks and Beverages

As temperatures rise nationwide, so does the demand for refreshing beverages and snacks. Beverage companies anticipate a lucrative season ahead, as consumers crave icy lemonades, fizzy sodas, and fruit smoothies to beat the heat. Coimbatore-based TABP Snacks and Beverages is ready to seize this opportunity amid escalating competition.

The brand’s unique selling proposition lies in its snacks and beverages priced at INR 5 and INR 10. And its commitment to catering to the needs of the “bottom of the pyramid” segment, a philosophy deeply ingrained in the company’s ethos.

Prabhu Gandhikumar, affectionately known as Prabhu, the visionary behind the company, shared insights into the innovative strategies propelling his company’s success in this fiercely competitive market.

Prabhu highlighted the significant surge in demand, attributing it to the booming snacking business and the favorable response to TABP’s innovative beverage offerings. “So last six months have been very exciting. The extended summer season in the southern part of the country, due to reduced rainfall, contributed to robust sales,” he said.

Known for affordable pricing, last year, TABP launched lemon salt beverage for just INR 10 has been clocking great results. “This unique product has garnered excellent feedback and high rates of repeat purchases nationwide. Initially launched in Kerala last year, its success prompted expansion into Tamil Nadu, Andhra Pradesh, and Karnataka, where it continues to receive positive reception,” he said.

In addition to the lemon salt beverage, another TABP offering gaining traction is an energy drink priced at INR 10. Particularly popular among individuals needing a caffeine boost in hot weather such as rickshaw drivers, cab drivers, and service industry workers, it offers a convenient alternative to tea or coffee. Moreover, TABP’s entry into the water segment has also been successful, filling a crucial gap in the market with its competitively priced offerings.

“Overall, the past several months have seen exciting product debuts and expansions, driven by a keen understanding of customer demands and a commitment to provide affordable, high-quality beverages. And because our distribution is designed to deliver liquid-heavy products, we’ve been able to efficiently penetrate this market,” he said.

Continue Exploring: Coimbatore’s TABP Snacks and Beverages raises INR 20 Cr funding led by LC Nueva AIF

Further to their commitment to affordable snacks, Prabhu highlighted their success story on the snacks front, especially TABP’s veg biryani. “It’s performing exceptionally well. Currently, nearly 40% of our sales are attributed to our vegetarian biryani, a unique flavor that sets us apart from other MNCs and competitors,” he said.

Even during the off-season, TABP remains committed to R&D for affordable quality snacks. Their upcoming projects include INR 5 ‘Podi Idly’, ready-to-eat noodles, and packaged bhel, offering convenience and flavor.

“Our focus in snacks lies in replicating the emotion of staple foods like bhel, podi idlis, and biryanis, which are beloved by people at the bottom of the socioeconomic pyramid. Through extensive R&D, we aim to transform these traditionally unpackaged and labor-intensive dishes into affordable, packaged snacks priced at INR 5 and INR 10,” he explained.

Prabhu delved into the rationale behind TABP’s product portfolio, emphasizing the focus on affordability and accessibility. Despite stiff competition from industry giants, he outlined TABP’s unique selling proposition, highlighting the magic price point of 10 rupees that resonates with price-sensitive consumers. By prioritizing retailer margins and incentivizing product push, TABP has successfully carved out a niche for itself, challenging established players and gaining traction in untapped markets.

Continue Exploring: FMCG and dairy giants prepare for summer surge: PepsiCo and Coca-Cola ramp up production as heatwave looms, Dabur and Havmor expand capacity

“Yes, Coke and Pepsi indeed have a significantly larger distribution network. They’ve heavily invested in in-store presence, with bustling coolers, prominent boards, and extensive activations. However, our strength lies in our magic price point of INR 10. While Pepsi offers an energy drink at INR 20 for 250 ml, we provide a 160 ml energy drink for INR 10,” he said.

“While the price points may appear similar, affordability is paramount. For someone who earns roughly INR 300 per day, spending even INR 20 can be a significant expense. Packaged beverages have always been aspirational for them, and if they are available at INR 10, they will gladly buy them. Furthermore, we provide merchants higher margins than Coca-Cola or Pepsi, which motivates them to promote our goods and drive growth,” he added.

He also highlighted the successful establishment of a plant in Odisha, made possible by government subsidies, enabling TABP to penetrate and thrive in the eastern market while creating employment opportunities for local communities.

“Since the establishment of our facility in Orissa, we have grown significantly, which is largely made possible by the 5 crore subsidy from the central government. With this support, we were able to enter a significant market, send truckloads of products, and generate jobs locally, which reduced migration. We are seeing significant growth in Orissa, a market with enormous potential.”

Building on Orissa plant success, they are now expanding in Gujarat, West Bengal, a third-party unit in Assam, and a plant in Guwahati expected to commence operations by the end of this month. Looking ahead, Prabhu outlined TABP’s ambitious growth targets, aiming to surpass the 500 Cr sales mark in the next 2 years. With a focus on deepening its presence in southern markets and expanding into underserved regions like Madhya Pradesh, Bihar, and Jharkhand, TABP is poised for exponential growth fueled by relentless innovation and customer-centricity.

Continue Exploring: From scoops to sundaes: Ice cream sales set to soar 15-20% this summer

DMart’s Q4 FY24 net profit soars 22.3% to INR 563 Crore, driven by strong performance in general merchandise and apparel

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SnackTeam

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May 6, 2024

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Avenue Supermarts, the company behind DMart, has reported a 22.3% increase in its consolidated net profit for the fourth quarter ended in March 2024. The profit surged to INR 563.14 crore compared to INR 460 crore in the same quarter last year.

The profit after tax (PAT) margin for Q4 FY24 was 4.4%, up from 4.3% in Q4 FY23. Basic earnings per share (EPS) for Q4 FY24 were INR 8.66, compared to INR 7.10 for Q4 FY23.

According to the BSE filing, the company’s total revenue from operations increased to INR 12,727 crore in Q4 FY24, up from INR 10,594 crore in the corresponding period last year.

In Q4 FY24, DMart saw a rise in its earnings before interest, tax, depreciation, and amortization (EBITDA) to INR 944 crore, up from INR 772 crore in the same quarter of the previous year. The EBITDA margin for Q4 FY24 was 7.4%, slightly higher than the 7.3% recorded in Q4 FY23.

Continue Exploring: DMart’s Q3 standalone revenue surges by 17.18%, reaching INR 13,247.33 Crore

The company’s total revenue for FY24 increased to INR 50,789 crore from INR 42,840 crore in the corresponding period last year. Its EBITDA for FY24 amounted to INR 4,104 crore compared to INR 3,637 crore in FY23. The EBITDA margin for FY24 was 8.1%, down from 8.5% in FY23, as indicated in the filing.

For FY24, the net profit rose to INR 2,536 crore from INR 2,378 crore in FY23.

Regarding DMart’s brick-and-mortar business and overall performance, Neville Noronha, CEO and Managing Director, stated, “We concluded the year with growth in key financial indicators such as revenue, EBITDA, and PAT. DMart stores aged two years and older experienced a growth of 9.9% during FY 2024 compared to FY 2023.”

The company stated it operates 284 stores aged 2 years or older. Furthermore, over the fiscal year 2023-24, it opened 41 new stores, bringing the total store count to 365.

Throughout the quarter (Q4), the supermarket chain has observed a sustained increase in the contribution from general merchandise and apparel. The improvement in gross margin during Q4 FY24 compared to the same quarter of the previous fiscal year reflects this enhanced mix.

In regards to DMart Ready, its online business, Noronha mentioned, “Our e-commerce operations expanded into one new city (Gurugram) during the year, alongside reinforcing our presence in current cities.”

At present, the company maintains an online presence in 23 cities across India.

Continue Exploring: Godfrey Phillips explores sale of 24Seven grocery chain to major retail players

Shake Shack bounces back strong with $2.2 Million net income in Q1 2024, plans aggressive expansion for Q2

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May 4, 2024

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Shake Shack, the American fast casual restaurant chain, has reported an attributable net income of $2.2 million for the initial quarter (Q1) of 2024, marking a turnaround from a net loss of $1.6 million in Q1 2023.

For the quarter ended on March 27, 2024, total revenue amounted to $290.5 million, representing a 14.7% increase from the $253.28 million reported in the previous year.

System-wide sales increased by 12.3% year-on-year to reach $443.3 million.

The restaurant-level profit saw a notable increase of 22.4%, reaching $54.7 million, up from $44.7 million in Q1 2023.

Continue Exploring: Restaurant Brands International sees profit surge in Q1 2024

The restaurant-level profit margin, calculated as a percentage of the chain’s sales, rose to 19.5% from 18.3% in the previous year.

In the quarter, Shake Shack’s total expenses amounted to $290.47 million, marking a 13.3% increase from the $256.46 million reported in the corresponding period of the previous year.

Adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) for the period under consideration amounted to $35.88 million, showing a 30.2% increase compared to the previous year.

Shake Shack’s chief financial officer, Katie Fogertey, remarked, “We established a robust groundwork in the first quarter, aiming to bolster profitable sales and enhance margins in 2024. Our strategy includes targeting a 15% year-on-year revenue growth, expanding restaurant-level profit margins by 120 basic points, and achieving over a 30% year-on-year increase in adjusted EBITDA.”

In the initial quarter, Shake Shack broadened its presence by inaugurating four new company-operated sites, comprising two drive-throughs, along with four new licensed locations.

Moving forward, the company has outlined its plans for the second quarter, aiming to launch 10 company-operated locations and eight to nine licensed locations.

Continue Exploring: Little Caesars announces major expansion: Over 30 new restaurants set to open across the US

For the second quarter of the year, the company expects total revenue to range from $308.9 million to $314.3 million, with a restaurant-level profit margin anticipated to fall between 21.5% and 22.0%.

Fogertey further commented, “Our teams are actively implementing our 2024 strategies to enhance the overall guest experience, boost sales, widen restaurant-level profit margins, and reduce construction costs. We aim to achieve a year-on-year sales growth of 12% to 15% and increase adjusted EBITDA to between $160 million and $170 million, representing a rise of 21% to 29%.”

Apparel retailer rue21 files for third bankruptcy, announces closure of all stores

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May 4, 2024

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rue21, a teen apparel retailer, has filed for Chapter 11 bankruptcy protection for a third time, seeking to shut down its 540 stores and sell its intellectual property.

In documents filed in Wilmington, Delaware, bankruptcy court, rue21 stated that despite attempts to sell its business, no buyer emerged willing to offer more than the potential earnings from liquidating inventory through “going out of business” sales and closing down stores.

Based in Warrendale, Pennsylvania, the retailer rue21, which has previously undergone bankruptcy proceedings in 2003 and 2017, specializes in budget-friendly fashion geared towards teens and young adults. The company currently employs around 4,900 individuals and carries a debt of $194.4 million.

Continue Exploring: Apparel retailer Express files for US bankruptcy protection, plans closure of over 100 stores

During its prime, rue21 operated 1,000 stores across malls nationwide in the United States. In its 2017 bankruptcy, the company closed approximately 400 stores as part of an agreement that enabled rue21 to reduce its debt by $700 million.

However, even after emerging from bankruptcy, the company faced ongoing challenges exacerbated by the rapid transition to online shopping, a trend further accelerated by the COVID-19 pandemic.

In 2022, rue21 aimed to secure additional capital to tackle its business obstacles, ultimately securing a $25 million investment from its current lenders. According to court documents, these lenders now hold an 80% stake in rue21’s stock.

rue21 plans to sell its brand and other intellectual property independently of its store closure proceedings. The company has enlisted Gordon Brothers to aid in the store closure sales.

Continue Exploring: The Body Shop files for bankruptcy: US operations shut down, Canadian stores to follow suit

India lifts ban on onion exports, sets minimum export price at $550 per tonne

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May 4, 2024

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On Saturday, the Government announced the lifting of the ban on onion exports, as per a notification from the Directorate General of Foreign Trade (DGFT), ending a restriction that had been in place for approximately six months.

“The export policy of onions has been modified from “prohibited to free,” subject to a minimum export price of $550 per metric tonne, with immediate effect and until further orders,” according to the DGFT notification.

This move is part of the government’s efforts to strike a balance, ensuring farmers receive fair prices while also maintaining inflation at manageable levels to safeguard consumers from its effects.

On April 27, the Government permitted the export of 99,150 metric tonnes of onions to six neighboring countries: Bangladesh, UAE, Bhutan, Bahrain, Mauritius, and Sri Lanka.

Continue Exploring: Govt extends ban on onion exports indefinitely

On December 8, 2023, the government imposed a restriction on onion exports effective March 31 of the same year. The restriction was imposed to ensure adequate local supply and price stability in light of reduced outputs expected for both the Kharif and Rabi harvests in 2023-24 compared to the previous year, as well as increased demand in the foreign market.

The National Cooperative Exports Limited (NCEL), tasked with exporting onions to these nations, procured domestic onions for export via an e-platform at L1 prices. These onions were then supplied to government-nominated agencies in the destination countries at negotiated rates, with payment made on a 100% advance basis, as outlined by the Food Ministry.

NCEL’s offer rate to buyers considers current prices in the destination market, as well as trends in international and domestic markets. Quotas assigned for export to the six countries are fulfilled based on requests from these destinations.

Being the leading onion producer in the nation, Maharashtra serves as the primary onion supplier for NCEL’s export operations.

The Government also authorized the export of 2000 metric tonnes (MT) of white onions, specifically cultivated for markets in the Middle East and certain European countries. Given its focus solely on exports, the production costs of white onions are higher compared to other varieties, attributable to increased seed expenses, adherence to good agricultural practices (GAP), and compliance with stringent maximum residue limit (MRL) regulations.

Continue Exploring: India eases onion export restrictions, allows shipments to selected countries

This year, the Department of Consumer Affairs’ Price Stabilisation Fund (PSF) has set a procurement target of 5 lakh tonnes for onion buffer beginning in Rabi 2024. NCCF and NAFED are working with local agencies such as FPOs/FPCs/PACs to help with purchase, storage, and farmer registration for any store-worthy onions. On April 11-13, 2024, a high-level team from the Department of Consumer Affairs, NCCF, and NAFED toured the Maharashtra districts of Nashik and Ahmednagar to promote awareness among farmers, FPOs/FPCs, and PACs about the procurement of 5 LMT of onion for the PSF buffer.

To mitigate onion storage losses, the Department of Consumer Affairs has opted to increase the amount of onions to be irradiated and cold-stored from 1200 MT last year to over 5000 MT this year, with technical assistance from BARC, Mumbai. The previous year’s pilot project on onion irradiation and cold storage has demonstrated a reduction in storage losses to less than 10 percent.

Sustainable tableware brand CHUK sees remarkable profit surge in Q3 2023–24

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May 4, 2024

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CHUK, a manufacturer of compostable tableware crafted from sugarcane residue, reported a significant profit rebound in the third quarter of the fiscal year 2023–24. During Q3 2023, CHUK saw a remarkable pre-tax profit (PBT) of INR 174.24 lakhs.

Satish Chamyvelumani, Business Head-Compostable at CHUK, expressed, “It’s incredibly motivating and uplifting to see CHUK’s remarkable growth within just six years. The rising demand for compostable packaging reflects a growing commitment to sustainability. We’re leading this change by offering compostable tableware solutions globally. This achievement underscores our unwavering dedication to fostering a cleaner, greener planet. We’re continuously innovating and expanding our product range, eagerly anticipating sustained growth ahead.”

Continue Exploring: Chuk teams up with Zomato’s Hyperpure to expand online presence and promote sustainable food packaging alternatives

The projected growth of the global bagasse tableware products market indicates a CAGR of 6.7% from 2023 to 2032, with the market value anticipated to rise from US$ 2,985.1 million in 2023 to US$ 5,230.5 million by 2032, according to data. CHUK plans to expedite its growth, aiming for double the pace in the upcoming financial year. The brand’s objectives include boosting profitability, extending its global presence, and introducing new product lines that resonate with changing consumer tastes.

Earlier, CHUK collaborated with the Ram Mandir Trust during the Ayodhya Mandir consecration event to distribute compostable tableware and showcased its product portfolio at the Aahar 2024 show in Delhi.

Continue Exploring: CHUK launches Sustainable packaging Solutions for Food Delivery and QSR Brands

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