Agricultural Exports

Exports of agricultural products, including marine, for the year 2021-22 have crossed the 50 billion dollar mark, which is the highest level ever achieved in it.

Details –

• As per the provisional figures released by Directorate General of Commercial Intelligence and Statistics, DGCIS, the agricultural exports have grown by 19.92 percent during 2021-22.
• This achievement over the past two years will go a long way in realising the Prime Minister’s vision of improving farmers’ income.
• The highest ever exports have been achieved for staples like rice, wheat, sugar, other cereals and meat which resulted in benefiting farmers in many states.

Challenges to India’s agricultural exports –

• The export of processed food products has not been growing fast enough because India lacks comparative advantage in many items. Domestic prices of processed food products are much higher compared to the world reference prices.
• The exporters of processed food confront difficulties and non-tariff measures imposed by other countries on Indian exports. Some of these include mandatory pre-shipment examination by the Export Inspection Agency being lengthy and costly. Compulsory spice board certification being needed even for ready-to-eat products.
• Lack of strategic planning of exports by most State governments.
• Lack of a predictable and consistent agricultural policy discouraging investments by the private sector.
• Prohibition of import of meat- and dairy based-products in most of the developed countries.

What should be done?

• The main objective of the Agriculture Export Policy is to diversify and expand the export basket so that the export of higher value items, including perishables and processed food, be increased
• The policy needs to nurture food processing companies, ensuring low cost of production and global food quality standards, and creating a supportive environment to promote export of processed food.
• Reputed Indian brands should be encouraged to export processed foods globally as they can comply with the global standard of codex.
• Indian companies should focus on cost competitiveness, global food quality standards, technology, and tap the global processed food export market.