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DAILY NEWS ANALYSIS

  • 07 August, 2021

  • 20 Min Read

Agriculture Export Policy, 2018

Agriculture Export Policy, 2018

  • India, with large and diverse agriculture, is among the world’s leading producers of cereals, milk, sugar, fruits and vegetables, spices, eggs and seafood products.
  • Indian agriculture continues to be the backbone of our society and it provides livelihood to nearly 50 % of our population.
  • India is supporting 17.84 per cent of world’s population, 15% of livestock population with merely 2.4 per cent of world’s land and 4 per cent water resources.
  • Hence, continuous innovation and efforts towards productivity, pre & post-harvest management, processing and value-addition, use of technology and infrastructure creation is an imperative for Indian agriculture.
  • Various studies on fresh fruits and vegetables, fisheries in India have indicated a loss percentage ranging from about 8% to 18% on account of poor post-harvest management, absence of cold chain and processing facilities.
  • Therefore, agro processing and agricultural exports are a key area and it is a matter of satisfaction that India’s role in global export of agricultural products is steadily increasing.
  • India is currently ranked tenth amongst the major exporters globally as per WTO trade data for 2016.
  • India’s share in global exports of agriculture products has increased from 1% a few years ago, to 2.2 % in 2016.

Vision and objectives

The Agriculture Export Policy is framed with a focus on

  • Agriculture export oriented production,
  • Export promotion,
  • Better farmer realization and
  • Synchronization within policies and programmes of Government of India.

Vision

  • Harness export potential of Indian agriculture, through suitable policy instruments, to make India global power in agriculture and raise farmers income.

Objectives

  • To double agricultural exports from present ~US$ 30+ Billion to ~US$ 60+ Billion by 2022 and reach US$ 100 Billion in the next few years thereafter, with a stable trade policy regime.
  • To diversify our export basket, destinations and boost high value and value added agricultural exports including focus on perishables.
  • To promote novel, indigenous, organic, ethnic, traditional and non-traditional Agri products exports.
  • To provide an institutional mechanism for pursuing market access, tackling barriers and deal with sanitary and phytosanitary issues.
  • To strive to double India’s share in world agriculture exports by integrating with global value chain at the earliest.
  • Enable farmers to get benefit of export opportunities in overseas market.

Policy recommendations

The policy recommendations in this report are organized in two broad categories - strategic and operational.

Strategic

  • Policy Measures - Discussions with public and private stakeholders across the agricultural value chain highlighted certain structural changes that were required to boost agricultural exports. These comprise of both general and commodity specific measures that may be urgently taken and at little to no financial cost. The subsequent gains, however, are aplenty.
  • Infrastructure and logistics - Presence of robust infrastructure is critical component of a strong agricultural value chain. This involves pre-harvest and post-harvest handling facilities, storage & distribution, processing facilities, roads and world class exit point infrastructure at ports facilitating swift trade. Mega Food Parks, state-of-the-art testing laboratories and Integrated Cold Chains are the fundamentals on which India can increase its agricultural exports. Given the perishable nature and stringent import standards for most of the food products, efficient and time-sensitive handling is extremely vital to agricultural commodities
  • Holistic approach to boost exports - Agricultural exports are determined by supply side factors, food security, processing facilities, infrastructure bottlenecks and several regulations. This involves multiple ministries and state departments. Strategic and operational synergy across ministries will be key to boosting productivity and quality.
  • Greater involvement of State Governments in Agriculture Exports

Operational Recommendations

  • Focus on Clusters : There is a need to evolve and put in place institutional mechanism for effective involvement and engagement of small and medium farmers for entire value chain as group enterprise(s) within cluster of villages at the block level for select produce(s). This will help to realize actual benefit and empowerment of farming community to double their income through entire value chain
  • Promoting value added exports
  1. Product development for indigenous commodities and value addition
  2. Promote value added organic exports
  3. Promotion of R&D activities for new product Development for the upcoming markets
  4. Skill development
  • Marketing and promotion of “Brand India”
  • Attract private investments in export oriented activities and infrastructure.
  • Establishment of Strong Quality Regimen
  • Research and Development - Agricultural research and development (R&D) led by private industry along with higher infrastructure spend by the government will be the key to boosting agricultural exports.
  • Miscellaneous - Creation of Agri-start-up fund: Entrepreneurs are to be supported to start a new venture in Agri products exports during their initial period of establishment.

Source: PIB


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