{"id":136135,"date":"2021-09-22T20:25:55","date_gmt":"2021-09-22T14:55:55","guid":{"rendered":"https:\/\/blog.forumias.com\/?p=136135"},"modified":"2021-09-25T15:30:56","modified_gmt":"2021-09-25T10:00:56","slug":"changing-the-agri-exports-basket","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/changing-the-agri-exports-basket\/","title":{"rendered":"Changing the agri exports basket"},"content":{"rendered":"\n

Synopsis<\/strong>: India has the potential to become a global leader in the food processing sector, by making changes to Agri export basket.<\/p>\n

Introduction<\/strong><\/h5>\n

The Indian government has been encouraging agricultural exports<\/strong> to meet an ambitious target of $60bn by 2022.<\/p>\n

What is the current scenario of agriculture?<\/strong><\/h5>\n

Growing exports<\/strong>: The Ministry of Food Processing Industries shows that the contribution of agricultural and processed food products in India\u2019s total exports is 11%<\/strong>. But the majority share is of primary processed agricultural commodities.<\/p>\n

Shift in India agricultural economy<\/strong>: It is shifting from primary to secondary agriculture, where the focus is more on developing various processed foods. The Indian food processing industry promises high economic growth and makes good profits.<\/p>\n

How export from agricultural sector has evolved over the years?<\/strong><\/h5>\n

Processed foods<\/strong>: India\u2019s agricultural export basket is changing from traditional commodities to non-traditional processed foods.<\/p>\n

Shift from traditional exports<\/strong>: for instance, Basmati rice is one of the top export commodities. However, now there is an unusual spike in the export of non-basmati rice. In 2020-21, India exported 13.09 million tonnes of non-basmati rice, up from an average 6.9 million tonnes in the previous five years.<\/p>\n

In 2020-21, the export of poultry, sheep and goat meat, cashew kernels, groundnuts, guar gum, and cocoa products went down in terms of value and total quantity.<\/p>\n

Indian buffalo meat<\/strong>: it is seeing a strong demand in international markets due to its lean character and near organic nature. The export potential of buffalo meat is tremendous.<\/p>\n

Focus on high value exports<\/strong>: The main objective of the Agriculture Export Policy<\/strong> is to diversify and expand the export basket so that instead of primary products, the export of higher value items, including perishables and processed food, be increased.<\/p>\n

What are the challenges still existing?<\/strong><\/h5>\n

The export of processed food products has not been growing fast<\/strong>: India lacks comparative advantage in many items. The domestic prices of processed food products are much higher compared to the world reference prices.<\/p>\n

Trade restrictions<\/strong>: Non-tariff measures imposed by other countries on Indian exports. Such as, mandatory pre-shipment examination by the Export Inspection Agency<\/strong>, compulsory spice board certification for ready-to-eat products which contain spices in small quantities, prohibition of import of meat- and dairy based-products in most of the developed countries and withdrawal of the Generalised System of Preference<\/strong> by the U.S.<\/p>\n

Lack of strategic planning of exports by State governments<\/strong>: for example, lack of a predictable and consistent agricultural policy discouraging investments by the private sector.<\/p>\n

What is the way forward?<\/strong><\/h5>\n

Firstly,<\/strong><\/em> the Centre\u2019s policy should be in the direction of nurturing food processing companies<\/strong>, ensuring low cost of production<\/strong> and global food quality standards.<\/p>\n

Secondly<\/strong><\/em>, creating a supportive environment<\/strong> to promote export of processed food.<\/p>\n

Thirdly<\/strong><\/em>, Indian companies should focus on cost competitiveness<\/strong>, global food quality standards, technology, and tap the global processed food export market.<\/p>\n

Source:<\/strong> This post is based on the article \u201cChanging the agri exports basket<\/strong>\u201d published in The Hindu<\/strong> on 22nd September<\/strong> 2021<\/strong>.<\/p>\n","protected":false},"excerpt":{"rendered":"

Synopsis: India has the potential to become a global leader in the food processing sector, by making changes to Agri export basket. Introduction The Indian government has been encouraging agricultural exports to meet an ambitious target of $60bn by 2022. What is the current scenario of agriculture? Growing exports: The Ministry of Food Processing Industries… Continue reading Changing the agri exports basket<\/span><\/a><\/p>\n","protected":false},"author":10316,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[1230,9],"tags":[9913,9007,9218,216],"class_list":["post-136135","post","type-post","status-publish","format-standard","hentry","category-9-pm-daily-articles","category-public","tag-agri-exports","tag-agriculture-sector","tag-exports-promotion","tag-gs-paper-3","entry"],"jetpack_featured_media_url":"","views":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/136135","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/10316"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=136135"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/136135\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=136135"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=136135"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=136135"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}