{"id":34939,"date":"2018-10-31T14:31:20","date_gmt":"2018-10-31T09:01:20","guid":{"rendered":"https:\/\/blog.forumias.com\/?p=34939"},"modified":"2018-10-31T14:31:20","modified_gmt":"2018-10-31T09:01:20","slug":"what-should-an-agricultural-export-promotion-policy-focus-on","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/what-should-an-agricultural-export-promotion-policy-focus-on\/","title":{"rendered":"What should an agricultural export promotion policy focus on?:\u00a0\u00a0"},"content":{"rendered":"<p><a style=\"font-size: 1rem;\" href=\"http:\/\/www.livemint.com\/Politics\/KqUkuXI8R3UOcaKFJ77cuI\/What-should-an-agricultural-export-promotion-policy-focus-on.html\">What should an agricultural export promotion policy focus on?<\/a><span style=\"font-weight: 400;\">:\u00a0\u00a0<\/span><\/p>\n<p><b>Context:<\/b><\/p>\n<ul>\n<li><span style=\"font-weight: 400;\">The government will soon announce a policy aimed at boosting farm exports said newly appointed commerce minister Suresh Prabhu.<\/span><\/li>\n<\/ul>\n<p><b>Introduction:<\/b><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">India\u2019s agricultural trade surplus recorded a more than ten-fold increase between 1991-92 and 2013-14.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Mr Prabhu, also underlined the need to eliminate restrictions in agriculture trade.<\/span><\/li>\n<\/ul>\n<p><b>What will the Benefits of this policy?<\/b><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">This would provide a boost to Indian farmers\u2019 incomes.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Farm exports will also earn valuable foreign exchange.<\/span><\/li>\n<\/ul>\n<p><b>What are the challenges that India\u2019s farm exports is facing?<\/b><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">India\u2019s agricultural exports increased at a brisk pace for more than two decades after the globalization in 1991.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Although imports also increased, they were more than compensated for by exports.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">India\u2019s agricultural trade surplus recorded a more than ten-fold increase between 1991-92 and 2013-14.<\/span><\/li>\n<\/ul>\n<p><b>Between 2013-14 and 2016-17, agricultural exports fell by 22% while imports increased by 62%. As a result, the trade surplus has fallen by 70%.<\/b><\/p>\n<p><b>What are the reasons?<\/b><\/p>\n<ul>\n<li><b><span style=\"font-weight: 400;\">Fall in international prices and loss of competitiveness due to currency movements for India\u2019s plummeting farm export earnings.<\/span><\/b><\/li>\n<li><span style=\"font-weight: 400;\">A report by the Organisation for Economic Co-operation and Development (OECD) and the Food and Agriculture Organisation on the agricultural outlook, released in July this year, expects a flat to declining trend for primary commodity prices.<\/span><\/li>\n<li><span style=\"font-weight: 400;\">The situation is dismal for cotton, sugar and rice, which are major components of India\u2019s agriculture export basket.<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Government\u2019s restrictions on important food items to prevent inflationary pressures in the domestic economy.<\/span><\/li>\n<li><span style=\"font-weight: 400;\">India\u2019s warehousing capacity for perishables is disproportionately concentrated in a few regions.<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Almost 50% of cold-storage capacity is concentrated in the states of Uttar Pradesh<\/span><\/li>\n<\/ul>\n<p><b> What \u00a0are the Solutions?<\/b><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Improvement in warehousing infrastructure would also counter inflation concerns due to seasonal factors such as poor monsoon rains.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">India\u2019s agricultural trade surplus could increase significantly if it cuts down on imports of pulses and edible oils.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Pulses alone made up for close to 17% of the value of India\u2019s total imports of agriculture and allied products in 2016-17.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">The problem of bumper crops leading to a price crash can be resolved by policies such as minimum support prices.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">India pursued the cause of legitimizing its procurement based PDS at the WTO in the past two WTO ministerial conference.<\/span><\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>What should an agricultural export promotion policy focus on?:\u00a0\u00a0 Context: The government will soon announce a policy aimed at boosting farm exports said newly appointed commerce minister Suresh Prabhu. Introduction: India\u2019s agricultural trade surplus recorded a more than ten-fold increase between 1991-92 and 2013-14. Mr Prabhu, also underlined the need to eliminate restrictions in agriculture&hellip; <a class=\"more-link\" href=\"https:\/\/forumias.com\/blog\/what-should-an-agricultural-export-promotion-policy-focus-on\/\">Continue reading <span class=\"screen-reader-text\">What should an agricultural export promotion policy focus on?:\u00a0\u00a0<\/span><\/a><\/p>\n","protected":false},"author":61,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[555],"tags":[],"class_list":["post-34939","post","type-post","status-publish","format-standard","hentry","category-test-1","entry"],"jetpack_featured_media_url":"","views":{"total":0,"cached_at":"","cached_date":1704817065},"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/34939","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\/61"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=34939"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/34939\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=34939"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=34939"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=34939"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}