File photo of bananas at the Koyambedu Market in Chennai.
File photo of bananas at the Koyambedu Market in Chennai.

Exports of agricultural commodities go up by 23.24% from March to June 2020

New Delhi, August 19, 2020

Agricultural commodities exports increased by 23.24% from March to June 2020 compared to the same period in the previous year, an official press release said here on Tuesday.

As per WTO’s Trade Statistics, the share of India’s agricultural exports and imports in the world agriculture trade in 2017 was 2.27% and 1.90%, respectively. Even during the difficult time of the pandemic lockdown, India took care not to disturb the world food supply chain and continued to export, the release said.

The exports of agri commodities during March 2020 to June 2020 were Rs. 25,552.7 crore against the export of Rs. 20,734.8 crore during the same period in 2019.

Agricultural exports as a percentage of India’s agricultural GDP have increased from 9.4 % in 2017-18 to 9.9 % in 2018-19, while the agricultural imports as a percentage of India’s agricultural GDP have declined from 5.7 % to 4.9 % indicating exportable surplus and decreased dependence on imports, the release said.

Giant strides have been made in agri-exports since independence. In 1950-51, India’s agri-export was about Rs 149 crores at that time which has risen to the level of Rs. 2.53 lakh crores in 2019-20. There has been a substantial increase in export of almost all the agricultural items in the last 15 years, but despite being one of the top producers of agricultural products, India does not figure among top exporters of agricultural produce.

For example, India holds the second rank in the world wheat production but ranks 34th in export. Similarly, despite being world No. 3 in the production of vegetables, the export ranking of India is 14th. Same is the case for fruits, where India is the second-largest producer in the world but its export ranking is 23rd. To reach the ranks of the top exporting nation in agriculture, commensurate with the production, there is a clear and categorical need to take proactive interventions, the release said.

The Ministry has prepared a comprehensive action plan/strategy towards the promotion of agricultural trade. A detailed exploration of data and issues of pre-production, production, and post-harvest has been undertaken to evolve an end to end approach for developing a holistic strategy.

An analysis of product groups and then specific commodities has been done concerning the present status of production & exports, strengths, challenges and thereafter interventions have been identified after consultations with stakeholders. The two-fold approach addresses boosting export with emphasis on value addition and focussed action plan for import substitution. The interventions so identified have been converted into a timed action plan.

To mention a few, the export strategy focuses on the export promotion of fast-evolving niche markets of Wellness food/ Health-conscious food/nutraceuticals; Development of “Brand India” in campaign mode to help penetration into new foreign markets and of new products which automatically translates into higher value realisation.

The Gulf countries have been identified as focus destination to increase the market share which is a strong market for India though at present, the country caters to only 10-12% share of their total imports. A product-market matrix has been made containing a list of products of strength which could be expanded in new geographies and list of known markets which can be introduced with newer products.

It is also noted that Horticulture is a growing sub-sector. India holds 2nd position in the production of fruits and vegetables. It exports 8.23 lakh MT (LMT) of fruits worth Rs 5,638 crore and 31.92 LMT of vegetables worth Rs 5,679 crore annually. Grapes occupy the premier position in fresh fruit exports followed by Mango, Pomegranate, Banana and Oranges.

In the fresh vegetable export basket, Onions, Mixed Vegetables, Potatoes, Tomatoes and Green Chilly are the major items. However, world trade of fruits and vegetables is US$ 208 billion and India’s share is minuscule. There is huge potential to increase export in fruits and vegetables. As such, a specific strategy for export promotion has also been evolved for fresh fruits & vegetables with specific emphasis on grapes, mango, pomegranate, onion, potato and cucumber-gherkin.

It is also emphasised that the existing agri clusters are required to be strengthened and more product clusters to be developed to fulfil the gap of bulk quantity and quality of supplies. A time-bound action plan has also been prepared for import substitution with particular focus upon Edible Oils, Cashew, fruits and spices thereby making India self –reliant.

At the behest of the Department of Agricultural Cooperation & Farmers’ Welfare, product-specific Export Promotion Forums have been created to lead agri exports to new heights. Export promotion forums (EPFs) for eight agri & allied products -- Grapes, Mango, Banana, Onion, Rice, Nutri-Cereals, Pomegranate and Floriculture -- have been constituted under the aegis of Agricultural and Processed Food Products Export Development Authority (APEDA).

Each Export Promotion Forum will have exporters of the related commodity as its members along with official members representing concerned Ministries/Departments of the Central and State Governments. Chairman APEDA will be the chairman of each of these forums. The forums will meet at least once in every two months, to discuss/ make recommendations on issues related to the export of the respective commodity and invite experts etc. to the meeting for interaction, as required.

The Forums will constantly monitor and identify/anticipate developments in the external/internal situation about the production and export of their respective commodity and recommend /intervene for taking the necessary policy/ administrative measures.

They will be in touch with the producers, exporters and other relevant stakeholders of respective commodities and hear their problems, and facilitate, support and provide solutions to them. They will regularly study the market for respective commodities on a global basis, and identifying opportunities and developments/implications for domestic entities, and disseminate the same expeditiously to domestic producers and exporters.

The recommendations of the forum will be placed in the product committee/Authority of APEDA. The Forum will keep in close contact with the concerned organisation of Ministry of Agriculture such as MIDH, Extension, NPPO etc., DGFT, Ministry of Civil Aviation, MoFPI etc. to further the interest of agricultural export.

NNN

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