Why does India's agricultural export performance remain weak despite high production levels? What measures would you suggest to improve agri-export competitiveness?
Main Body
Indian agricultural exports crossed $ 50 billion mark recently. However, this forms only 2% of total agri production in the country. Reasons for weak agri-exports despite high production: - Inadequate cold storages & warehousing infra → loss of ≈ Rs 86 thousand crores of agri-produce per year - Weak supply chains - due to lack of integration of agri-markets - Low branding & marketing - Lack of testing/assaying infrastructure [to grade various vasit varities]
agri-produce - Very low numbers of FTAs/PTAs - less than 30 - Lack of diversification in export categories & export destinations - Very few items to very few countries - Restrictive Sanitary/Phytosanitary import conditions in developed countries Measures to improve agri-export competitiveness: - a National Agri-Infrastructure Policy [to improve agri-logistics & reduce costs → higher competitiveness • Warehouses & cold storages in a PPP mode • Connecting Producing areas to major
ports - Creation of rural roads - special emphasis under PMGSY - Reintroduce Farm Acts w/ greater stakeholder consultation [emphasis on Model contract farming & collectivisation of fragmented holdings - Establish testing/certification center [Strengthen Organic Certification Schemes - to satisfy SPC conditions of advanced countriy - Diversification of Markets - target South East Asia, South America, E. Europe etc. Agri-Exports will not only ensure high & stable farm income but also shore-up India's current account balance
— ADITYA PATHAK · AIR 189
Conclusion
17 words
ADITYA PATHAK
Agriculture and Food Security
Transport & Marketing of Agricultural Produce & Issues & Related Constraints
Agricultural exports
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analytical
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