Why in news?
- Products registered with ‘Agricultural and Processed Food Products Export Development Authority – APEDA’ have seen a sharp decline in export.
- APEDA has hence urged the central government to allow 10-20% of annual agricultural produce to be exported.
What are the reasons?
- A major reason for decline in export is frequent change in government policy for products like Rice, pulses, wheat and sugar.
- Sometimes, export has been banned and at other times, duties have been raised or lowered.
- Although policy decisions were based agri-output & local demand, it effectively resulted in importers switching to alternative sources, for long-term supply assurance.
- Notably, the country’s agricultural and processed food export fell to $33.4 billion in 2016-17, from a record $42.9 bn in 2013-14.
What needs to be done?
- At 2.2% of the total, India is at ninth position in global agri trade and is considered to have a huge export potential.
- Export of agri items contributes 13.1% of agricultural GDP, thereby having a considerable impact on the economy.
- Developing a sustained export market requires a reliable supplier.
- Hence, stable export policy to ensure at least an assured export of 10-20% of production of an item in a season.
- Experts say keeping this much for export would suffice, as shipments have rarely exceeded such a proportion.
- Improvements in crop production estimation, buffer stock, future projection and domestic demand are needed.
- While India produces surplus in a number of agri commodities, their transportation, marketing continues to be a challenge.
Source: Business Standard
