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.
