{"id":214371,"date":"2022-11-14T21:01:28","date_gmt":"2022-11-14T15:31:28","guid":{"rendered":"https:\/\/blog.forumias.com\/?p=214371"},"modified":"2022-11-14T21:01:28","modified_gmt":"2022-11-14T15:31:28","slug":"importance-of-agri-exports-and-what-govt-can-do-to-boost-indias-farm-trade-surplus","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/importance-of-agri-exports-and-what-govt-can-do-to-boost-indias-farm-trade-surplus\/","title":{"rendered":"Importance of agri exports \u2014 and what Govt can do to boost India\u2019s farm trade surplus"},"content":{"rendered":"\n

Source<\/strong>: The post is based on an article\u00a0\u201cImportance of agri exports \u2014 and what Govt can do to boost India\u2019s farm trade surplus\u201d <\/strong>published in The Indian Express<\/strong>\u00a0on\u00a014th<\/sup> November 2022<\/strong>.<\/p>\n

Syllabus: GS 3- Agriculture<\/strong><\/p>\n

Relevance: <\/strong>concerns associated with increase in imports of agri-products.<\/strong><\/p>\n

News: <\/strong>The article discusses position of India in importing agri-products and measures to improve it.<\/strong><\/p>\n

What is the position of India in agri-exports?<\/strong><\/h5>\n

India\u2019s agriculture exports have grown 16.5% in the period of April-September and are expected to grow further.<\/p>\n

This growth has come at a time when the government has brought measures to ban the export of wheat, broken rice and sugar.<\/p>\n

However, despite the ban all three have shown a rise in exports from the last year. For example, sugar exports grew 45.5% in April-September this year compared to last year.<\/p>\n

However, imports have increased more than exports.<\/p>\n

What is the position of India in import?<\/strong><\/h5>\n

The first six months of the current fiscal (2022-23) have seen a narrow trade surplus<\/strong> because imports grew at a faster rate (27.7%) than exports (16.5%).<\/p>\n

India\u2019s trade deficit<\/strong> in overall merchandise trade account has widened from $76.25 billion in April-September 2021 to $146.55 billion in April-September 2022.<\/p>\n

Even with a wide trade deficit, India\u2019s surplus in agriculture trade reduced only from $7.86 billion to $7.46 billion.<\/p>\n

Therefore, surplus in agricultural trade matters because this is one sector, apart from software services, where India has some comparative advantage.<\/p>\n

Which agri-products have seen increase in import?<\/strong><\/h5>\n

Exports of all agri-products have been good except cotton, spices, cashew and vegetable oils.<\/strong><\/p>\n

Exports of cotton have declined and its import has increased due to the lower domestic production<\/strong> which has turned India a net cotton importer.<\/p>\n

In spices, India has become an importer of pepper and cardamom<\/strong>. Vietnam, Sri Lanka, Indonesia, and Brazil have out-priced India in pepper, while India has lost market share to Guatemala in cardamom.<\/p>\n

India has also increased its import of cashew compared to its export.<\/p>\n

Further, India is a major importer of vegetable oils. Imports have increased by more than 25% in the first half of this fiscal year. Vegetable oils<\/strong> are the country\u2019s fifth biggest import item after petroleum, electronics, gold, and coal.<\/p>\n

That is why the government has come up with important decisions to reduce its import of vegetable oil.<\/p>\n

What are the decisions taken by the government?<\/strong><\/h5>\n
    \n
  1. a)<\/strong> government has raised the MSP of mustard from Rs 5,050 to Rs 5,450 per quintal for the 2022-23 crop season, b)<\/strong> government has granted clearance for commercial cultivation of genetically modified (GM) hybrid mustard.<\/li>\n<\/ol>\n

    The yield from GM hybrid mustard is claimed to be 25-30% more than from currently-grown popular varieties and it would be also useful in developing new mustard hybrids giving higher yields.<\/p>\n

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

    A similar kind of approach is needed to boost high yields of cotton production.<\/p>\n

    GM Bt technology has helped in the increase in the cotton production but a new approach is required as production has started to fall down touching a 12-year low in 2021-22.<\/p>\n

    Therefore, India should focus on domestic production and productivity by leveraging technologies.<\/p>\n","protected":false},"excerpt":{"rendered":"

    Source: The post is based on an article\u00a0\u201cImportance of agri exports \u2014 and what Govt can do to boost India\u2019s farm trade surplus\u201d published in The Indian Express\u00a0on\u00a014th November 2022. Syllabus: GS 3- Agriculture Relevance: concerns associated with increase in imports of agri-products. News: The article discusses position of India in importing agri-products and measures… Continue reading Importance of agri exports \u2014 and what Govt can do to boost India\u2019s farm trade surplus<\/span><\/a><\/p>\n","protected":false},"author":10320,"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":[216,10500],"class_list":["post-214371","post","type-post","status-publish","format-standard","hentry","category-9-pm-daily-articles","category-public","tag-gs-paper-3","tag-indian-express","entry"],"jetpack_featured_media_url":"","views":{"total":0,"cached_at":"","cached_date":1704949801},"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/214371","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\/10320"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=214371"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/214371\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=214371"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=214371"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=214371"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}