The agriculture exports policy, 2018 has emphasised on "Bake in India" i.e., a renewed focus on value addition and on processed agricultural products.
PRESENT STATUS OF AGRI-EXPORTS
- Lower share of Global Exports: In spite of being one of the largest producers of Food grains and Fruits and vegetables, India's share in global export of Agri-commodities stand at merely 2% (9th Rank).
- Lack of Diversified Export basket: India's export basket is basically dominated by Basmati Rice and Marine Products
- Low Value addition: Majority of its exports are low value, raw or semi-processed.
AGRICULTURAL EXPORTS POLICY 2018
- Double agricultural exports from present ~US$ 30+ Billion to ~US$ 60+ Billion by 2022 and reach US$ 100 Billion in the next few years
- Diversify our export basket, destinations and boost high value- and value-added agricultural exports including focus on perishables.
- Promote novel, indigenous, organic, ethnic, traditional and non-traditional Agri products exports.
- Provide an institutional mechanism for pursuing market access, tackling barriers and deal with sanitary and phytosanitary issues.
- Strive to double India’s share in world Agri-exports by integrating with global value chain at the earliest.
CONSTRAINTS AND CHALLENGES
The Agricultural Exports Policy 2018 has sought 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. However, it would face number of challenges
- Supply-side:
- Lack of stable and reliable export policy. More focus on price stabilization and food security and not on exports.
- Lack of Market Intelligence related to consumer preference in export markets. For example, higher sweetness in Indian mangoes is notnecessarily in demand in many countries.
- Identification Challenges: Absence of state level export data precludes us from identifying potential export clusters within a state to providesuitable incentives.
- Lack of aggregation of low marketable surplus due to significant variation in terms of varieties cultivated.
- Training and Skill Development: Unregulated chemicals usage; Inadequate post-harvest management; Lack of awareness leading to rejection of Indian Products in overseas market.
- Fragmented and restrictive APMC regime
- Poor Infrastructure and Logistics makes Indian products uncompetitive.
- Lack of coordination among multiple agencies involved in export of Agri-commodities such as Ministry of Agriculture, Commerce Ministry, FSSAI etc.
- Demand-side:
- High import duties and Quota limits in export markets
- Indiscriminate application of sanitary and phytosanitary measures by other countries against Indian products.
- Surge in agricultural imports after signing of FTAs
Recommendations of the High-Level Expert Group (HLEG) to boost Exports
- State-led Export Plan - Business plan for a crop value chain cluster. Plans should be collaboratively prepared with private sector players and Commodity Boards.
- Focus on 22 crop value chains through a demand driven approach.
- Private sector should play an anchor role in driving outcomes and execution.
- Centre should be an enabler.
- Centre should enable state-led plans
- Robust institutional mechanism to fund and support implementation.
- Funding through convergence of existing schemes, Finance Commission allocation and private sector investment.