{"id":76854,"date":"2021-01-14T19:00:26","date_gmt":"2021-01-14T13:30:26","guid":{"rendered":"https:\/\/blog.forumias.com\/?p=76854"},"modified":"2021-03-26T18:10:47","modified_gmt":"2021-03-26T12:40:47","slug":"agricultural-exports-indias-potential-initiatives-challenges-and-solutions","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/agricultural-exports-indias-potential-initiatives-challenges-and-solutions\/","title":{"rendered":"Agricultural Exports- India&#8217;s potential, initiatives, challenges and solutions"},"content":{"rendered":"<p><strong><span style=\"font-size: 14pt;\">What is the News?<\/span><\/strong><\/p>\n<p><span data-contrast=\"none\">US Department of Agriculture(USDA) has\u00a0<\/span><span data-contrast=\"none\">forecasted\u00a0<\/span><span data-contrast=\"none\">1.8 million\u00a0<\/span><span data-contrast=\"none\">tonnes<\/span><span data-contrast=\"none\">\u00a0of wheat<\/span><span data-contrast=\"none\">\u00a0and 14.4 million\u00a0<\/span><span data-contrast=\"none\">tonnes<\/span><span data-contrast=\"none\">\u00a0of rice\u00a0<\/span><span data-contrast=\"none\">to be imported from India. This\u00a0<\/span><span data-contrast=\"none\">will be<\/span><span data-contrast=\"none\"> the highest ever wheat export from India to the US in the last six years. Despite the Indian government&#8217;s various steps to improve agricultural exports, there are few challenges associated with the exports.<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:276}\">\u00a0<\/span><\/p>\n<p><span style=\"font-size: 14pt;\"><b>Status of India\u2019s<\/b><b>\u00a0agricultural export<\/b><b>s:<\/b><b>\u00a0<\/b>\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">The\u00a0<\/span><span data-contrast=\"auto\">2019-20<\/span><span data-contrast=\"auto\">\u00a0Economic survey mentions a few important figures of India\u2019s agricultural exports. Indian agricultural\/horticultural and processed foods are\u00a0<\/span><b><span data-contrast=\"auto\">exported to more than 100 countries\/regions in the world<\/span><\/b><span data-contrast=\"auto\">.\u00a0<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">India is one of the<\/span><span data-contrast=\"auto\">\u00a0<\/span><span data-contrast=\"auto\">15 leading exp<\/span><span data-contrast=\"auto\">orters of agricultural products in the world.\u00a0<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">India\u2019s\u00a0<\/span><b><span data-contrast=\"auto\">major export destination<\/span><\/b><span data-contrast=\"auto\">\u00a0for agricultural products\u00a0<\/span><span data-contrast=\"auto\">a<\/span><span data-contrast=\"auto\">re\u00a0<\/span><span data-contrast=\"auto\">the USA, Saudi Arabia, Iran, Nepal, and Bangladesh.\u00a0<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">India\u2019s\u00a0<\/span><b><span data-contrast=\"auto\">major agricultural export basket<\/span><\/b><span data-contrast=\"auto\">\u00a0includes rice (both Basmati and non-basmati), spices<\/span><span data-contrast=\"auto\">,<\/span><span data-contrast=\"auto\">\u00a0cotton, and wheat apart from this India also exports marine<\/span><span data-contrast=\"auto\">\u00a0products and\u00a0buffalo\u00a0meat<\/span><span data-contrast=\"auto\">.\u00a0<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">As per APEDA (Agricultural and Processed Food Products Export Development Authority), India exported pulses worth US$ 163.90 million and dairy products worth US$ 89.50 million from April\u2013September 2020.<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><span style=\"font-size: 14pt;\"><b>Initiatives to\u00a0<\/b><b>encourage Agricultural exports<\/b><b>\u00a0in India:<\/b><b>\u00a0<\/b>\u00a0<\/span><\/p>\n<p><b><span data-contrast=\"auto\">Firstly<\/span><\/b><span data-contrast=\"auto\">, India encourages agricultural exports by creating a<\/span><b><span data-contrast=\"auto\">\u00a0dedicated body named the Agricultural and Processed Food Products Export Development Authority(APEDA<\/span><\/b><span data-contrast=\"auto\">). The government created APEDA under the APEDA Act 1985.\u00a0\u00a0<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<ul>\n<li style=\"list-style-type: none;\">\n<ul>\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"5\" aria-setsize=\"-1\" data-aria-posinset=\"1\" data-aria-level=\"1\"><span data-contrast=\"auto\">Under the\u00a0Export Promotion Scheme of APEDA<\/span><span data-contrast=\"auto\">, the<\/span><span data-contrast=\"auto\">\u00a0government\u00a0<\/span><span data-contrast=\"auto\">i<\/span><span data-contrast=\"auto\">s\u00a0<\/span><span data-contrast=\"auto\">providing\u00a0<\/span><b><span data-contrast=\"auto\">assistance to the exporters of agricultural products<\/span><\/b><b><span data-contrast=\"auto\">.<\/span><\/b><span data-ccp-props=\"{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p><b><span data-contrast=\"auto\">Secondly<\/span><\/b><span data-contrast=\"auto\">, The Government has introduced a comprehensive\u00a0<\/span><b><span data-contrast=\"auto\">Agriculture Export Policy in 2018<\/span><\/b><span data-contrast=\"auto\">. The policy aims to double farmers\u2019 income by 2022 by doubling agricultural exports from the country. The policy also aims to integrate Indian farmers and agricultural products into the global value chain.<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><b><span data-contrast=\"auto\">Thirdly<\/span><\/b><span data-contrast=\"auto\">, The Government has also brought out a Central Sector Scheme \u2013 \u2018<\/span><b><span data-contrast=\"auto\">Transport and Marketing Assistance for Specified Agriculture Products<\/span><\/b><span data-contrast=\"auto\">\u2019. The scheme aims for assisting the international component o<\/span><span data-contrast=\"auto\">f freight<\/span><span data-contrast=\"auto\">\u00a0handling<\/span><span data-contrast=\"auto\">\u00a0and marketing of agricultural products<\/span><span data-contrast=\"auto\">.\u00a0<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><b><span data-contrast=\"auto\">Fourthly<\/span><\/b><span data-contrast=\"auto\">, As per the present FDI Policy,\u00a0<\/span><b><span data-contrast=\"auto\">100% FDI is allowed in the following activities of agriculture through the automatic route<\/span><\/b><span data-contrast=\"auto\">.\u00a0<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">However, the\u00a0<\/span><b><span data-contrast=\"auto\">total agricultural export basket\u00a0<\/span><\/b><span data-contrast=\"auto\">accounts for\u00a0<\/span><b><span data-contrast=\"auto\">only\u00a0<\/span><\/b><span data-contrast=\"auto\">a little over\u00a0<\/span><b><span data-contrast=\"auto\">2.15 percent\u00a0<\/span><\/b><span data-contrast=\"auto\">of the world agricultural trade. This is because of various challenges associated with the exporting of agricultural commodities.<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><span style=\"font-size: 14pt;\"><b>What are the challenges associated with Agricultural exports?\u00a0<\/b>\u00a0<\/span><\/p>\n<p><b><span data-contrast=\"none\">Firstly<\/span><\/b><span data-contrast=\"none\">, The<\/span><b><span data-contrast=\"none\">\u00a0yield levels of the majority of crops<\/span><\/b><span data-contrast=\"none\">\u00a0in India remains much lower than the world average. This is compounded by\u00a0<\/span><b><span data-contrast=\"none\">fragmented landholdings<\/span><\/b><span data-contrast=\"none\">. The average farm size in India is only 1.15 hectares.\u00a0<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<ul>\n<li style=\"list-style-type: none;\">\n<ul>\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"3\" aria-setsize=\"-1\" data-aria-posinset=\"2\" data-aria-level=\"1\"><span data-contrast=\"none\">Majority of the Indian farmers belongs to small and marginal\u00a0<\/span><span data-contrast=\"none\">category<\/span><span data-contrast=\"none\">. The agricultural products\u00a0produced\u00a0<\/span><span data-contrast=\"none\">were\u00a0<\/span><span data-contrast=\"none\">used major<\/span><span data-contrast=\"none\">ly for own consumption.<\/span><span data-ccp-props=\"{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p><b><span data-contrast=\"none\">Secondly<\/span><\/b><span data-contrast=\"none\">, In\u00a0<\/span><span data-contrast=\"none\">India,<\/span><span data-contrast=\"none\">\u00a0<\/span><b><span data-contrast=\"none\">no<\/span><\/b><b><span data-contrast=\"none\">\u00a0study has been conducted to assess the long term impact of exports<\/span><\/b><span data-contrast=\"none\">\u00a0on the agricultural and horticultural sector by the Department of Commerce.\u00a0<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><b><span data-contrast=\"none\">Thirdly<\/span><\/b><span data-contrast=\"none\">,\u00a0<\/span><b><span data-contrast=\"none\">exporters of\u00a0<\/span><\/b><b><span data-contrast=\"none\">agro<\/span><\/b><b><span data-contrast=\"none\">-commodities are not successful<\/span><\/b><span data-contrast=\"none\">\u00a0in due to uncertainty in the foreign trading regime\u00a0<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><b><span data-contrast=\"none\">Fourthly<\/span><\/b><span data-contrast=\"none\">, The\u00a0<\/span><b><span data-contrast=\"none\">government\u2019s pro-consumer bias<\/span><\/b><span data-contrast=\"none\">\u00a0in India\u2019s farm policy is unfair. Indian government putting export restrictions on imported food items to prevent inflationary pressures in the domestic economy. This\u00a0<\/span><b><span data-contrast=\"none\">hurts Agricultural exports<\/span><\/b><span data-contrast=\"none\">.\u00a0<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<ul>\n<li style=\"list-style-type: none;\">\n<ul>\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"4\" aria-setsize=\"-1\" data-aria-posinset=\"3\" data-aria-level=\"1\"><span data-contrast=\"none\">The policy deprives farmers of higher prices in the international market and also adds an element of income uncertainty.\u00a0\u00a0<\/span><span data-ccp-props=\"{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/li>\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"4\" aria-setsize=\"-1\" data-aria-posinset=\"4\" data-aria-level=\"1\"><span data-contrast=\"none\">For example, If the government is going to impose export restrictions when international prices are at a peak. Farmers would lose part of the incentive to cultivate exportable crops.\u00a0<\/span><span data-ccp-props=\"{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p><b><span data-contrast=\"none\">Lastly<\/span><\/b><span data-contrast=\"none\">, there is an International demand &amp; supply situation, international prices and quality concerns also restrict India\u2019s agricultural exports.<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><span style=\"font-size: 14pt;\"><b>How to improve agricultural exports?<\/b>\u00a0\u00a0<\/span><\/p>\n<p><b><span data-contrast=\"none\">Firstly<\/span><\/b><span data-contrast=\"none\">, the Government can provide\u00a0<\/span><b><span data-contrast=\"none\">Infrastructur<\/span><\/b><b><span data-contrast=\"none\">e<\/span><\/b><b><span data-contrast=\"none\">\u00a0status\u00a0<\/span><\/b><b><span data-contrast=\"none\">to<\/span><\/b><b><span data-contrast=\"none\">\u00a0agricultur<\/span><\/b><b><span data-contrast=\"none\">al<\/span><\/b><b><span data-contrast=\"none\">\u00a0value chains<\/span><\/b><span data-contrast=\"none\">, such as\u00a0<\/span><span data-contrast=\"none\">w<\/span><span data-contrast=\"none\">arehousing, pack-houses, ripening chambers, and cold storage, etc.\u00a0<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><b><span data-contrast=\"none\">Secondly<\/span><\/b><span data-contrast=\"none\">,\u00a0<\/span><span data-contrast=\"none\">As per NITI Aayog\u00a0<\/span><span data-contrast=\"none\">recommendation<\/span><span data-contrast=\"none\">,\u00a0<\/span><span data-contrast=\"none\">the Government can create\u00a0<\/span><b><span data-contrast=\"none\">village level procurement\u00a0<\/span><\/b><b><span data-contrast=\"none\">centres<\/span><\/b><span data-contrast=\"none\">. This will benefit small and marginal farmers to improve agricultural exports.\u00a0<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><b><span data-contrast=\"none\">Thirdly<\/span><\/b><span data-contrast=\"none\">, Government can<\/span><b><span data-contrast=\"none\">\u00a0Re-invigorating agricultural research and education<\/span><\/b><span data-contrast=\"none\">, this will increase lab to land connectivity.\u00a0<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><b><span data-contrast=\"none\">Fourthly<\/span><\/b><span data-contrast=\"none\">, APEDA has suggested\u00a0<\/span><b><span data-contrast=\"none\">augmenting cargo handling facilities\u00a0<\/span><\/b><span data-contrast=\"none\">at airports, ports, etc. This will reduce the waiting time.\u00a0\u00a0<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"none\">Along with this government can\u00a0<\/span><b><span data-contrast=\"none\">create a Green channel clearance<\/span><\/b><span data-contrast=\"none\">\u00a0for perishable\u00a0<\/span><span data-contrast=\"none\">agro<\/span><span data-contrast=\"none\">\u00a0products in toll, air, and freight cargo stations.\u00a0<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><b><span data-contrast=\"none\">Fifthly<\/span><\/b><span data-contrast=\"none\">, the Government can<\/span><b><span data-contrast=\"none\">\u00a0establish regional production belts<\/span><\/b><span data-contrast=\"none\">. This can be achieved by linking the Mission for Integrated Development of Horticulture and Self Help Groups.<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><span style=\"font-size: 14pt;\"><b>Way forward:<\/b>\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">India occupies a leading position in the global trade of agricultural products. But the share can be improved to a greater level if certain bottlenecks are resolved. The key to doubling farmer\u2019s income is not only focusing on internal agricultural productivity but also encouraging India\u2019s global share in the agriculture export basket.<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>What is the News? US Department of Agriculture(USDA) has\u00a0forecasted\u00a01.8 million\u00a0tonnes\u00a0of wheat\u00a0and 14.4 million\u00a0tonnes\u00a0of rice\u00a0to be imported from India. This\u00a0will be the highest ever wheat export from India to the US in the last six years. Despite the Indian government&#8217;s various steps to improve agricultural exports, there are few challenges associated with the exports.\u00a0 Status of&hellip; <a class=\"more-link\" href=\"https:\/\/forumias.com\/blog\/agricultural-exports-indias-potential-initiatives-challenges-and-solutions\/\">Continue reading <span class=\"screen-reader-text\">Agricultural Exports- India&#8217;s potential, initiatives, challenges and solutions<\/span><\/a><\/p>\n","protected":false},"author":61,"featured_media":76868,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[130],"tags":[1314,1533,1531,1534,7999,1532],"class_list":["post-76854","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-7-pm","tag-agri_6","tag-agricultural-and-processed-food-products-export-development-authority","tag-agricultural-exports","tag-agriculture-export-policy","tag-economy_issues","tag-transport-and-marketing-assistance-for-specified-agriculture-products","entry"],"jetpack_featured_media_url":"https:\/\/i0.wp.com\/forumias.com\/blog\/wp-content\/uploads\/2021\/01\/Agricultural_Exports_Indias_potential_initiatives_challenges_and_solutions.jpg?fit=940%2C540&ssl=1","views":{"total":7,"cached_at":"","cached_date":1698343481},"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/76854","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=76854"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/76854\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media\/76868"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=76854"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=76854"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=76854"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}