How green are India’s agri-exports?

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Syllabus: GS 3

Synopsis: We need to look at supplies like rice and sugar from a sustainability viewpoint.

Introduction 

In FY 2020-21, agri-exports reached $41.8 billion, an increase of 18% over the previous year. This has boosted government morale and helped to enhance farm prices in the United States. Even so, these exports fall well short of the $60 billion goals that the government set for itself by 2022.

What are the issues with rice and sugar exports?

Rice and sugar are heavily subsidised by cheap electricity for irrigation and fertilisers. The government’s export subsidy to clear excess domestic sugar stocks has prompted many other sugar-exporting countries, including Australia, Brazil, and Thailand, to file a WTO case against India, which India may find difficult to defend.

• Firstly, previous research indicates that power and fertiliser subsidies account for approximately 15% of its value in states such as Punjab and Haryana for rice. If these subsidies are removed through direct income transfers to farmers, rice will no longer be as popular a crop among farmers.

• Secondly, the most serious concern about India’s rising rice and sugar exports is their long-term viability. Policymakers must consider such concerns when developing a long-term strategy for agri-exports. 
• Thirdly, India is a water-stressed country, with per capita water availability in 2011 of 1,544 cubic metres, down from 5,178 cubic metres in 1951. By2050, this is expected to drop even more to 1,140 cubic metres. It is commonly known that a kilogramme of sugar consumes around 2,000 gallons of water.
  •  India exported 7.5 million tonnes of sugar in2020-21 (sugar shipped at least 15 billion cubic metres of water).
• Fourthly, irrigating a kilogramme of rice requires between 3,000 and 5,000 gallons of water, depending on terrain. Shipping 17.7 million tonnes of rice means India has effectively exported 35.4 billion cubic metres of water. 
  • Rice cultivation contributes to more than 18 per cent of the GHG emission generated from agriculture.
• Lastly, non-basmati exports are sourced below MSP and below the average domestic mandi rates in the country. 

What should be done?

• The crop must be farmed in a water-efficient and low-GHG (methane) footprint manner. Agricultural strategies such as alternate wetting drying (AWD), direct-seeded rice (DSR), and micro-irrigation will need to be prioritised.
  • Farmers may be compensated for conserving water, switching from paddy and sugar to less water-intensive crops, and lowering their carbon footprint.
• Officials should reconsider the entire rice and sugar system, from MSP to production, in terms of environmental sustainability. 
• All of this will help to encourage better diversification of our agricultural systems, better use of our limited water resources, and lower GHG emissions. With the FCI, we could avoid wasting money on pointless investments in rising grain stocks.
• These savings can be utilised to double investments in agricultural research and development to increase production on a long-term basis and enhance farming techniques to reduce carbon emissions.