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It is not difficult to export agricultural products from India. Just that one has to abide by the frequently changing rules and regulations of the government. Given that most food products are essential commodities, scarcity at home translates into an immediate curb on exports. Hence, one needs to keep a close watch on the changing patterns at home and developing markets abroad.

Potential Areas
The highest increase in exports is possible in the food grain segment. The average 15 percent annual growth in basmati rice production and the policy decision to allow export of non-basmati rice, wheat and other cereals available above the buffer can help hit the target. Also, value added processed products promise a huge potential. Incentives for units manufacturing export products can entice manufacturers into producing these products.

Export of meat, poultry and dairy products can be doubled if we have good animal husbandry practices, a uniform policy for slaughtering and for maintenance of abattoirs and if we address the concerns over quality and backward linkages. India being one of the leaders in fresh fruit and vegetables segment, doubling export is very much feasible.
For perishable goods, ensuring cold chain corridors with cargo handling facilities can avoid large scale wastage that occurs post harvest.

Any substantial increase in tobacco export will be constrained by India’s obligation under Framework of Global Tobacco Control. However, over 50 percent growth can be achieved by improving curing, by realizing better prices in traditional markets and by finding new markets.

Cereals (Rice, Wheat and Coarse Grains)
Strength: High acreage and involvement of major population in the farming.
Impediments: Lack of awareness of scientific methods of farming. This results in lower yield and production of inferior quality.
Changes needed
 Allowing export of non-basmati rice and wheat, subject to realistic minimum export price (MEP)/quantitative restriction.
 Sustainable, long term and stable export policy to replace knee jerk reactions to short term price fluctuations.
 Promotion in new markets by signing protocols related to pest risk analysis (PRA).
 Opposing incidence of imposition of unscientific and unrealistic pesticide residues MRLs by important trading partners like the EU.
 Speeding up registration of basmati rice and other India-specific commodities for GI.

Live stock (Buffalo, Sheep, Goat and Poultry)
Strength: The country houses about 13 percent of the world’s cattle population, 56.6 percent of world’s buffalo population and 15 percent of world’s goat population. Bovine meat, which constitutes almost 80 percent of total live stock export, can contribute immensely towards the increase in export. Vietnam, Malaysia, Philippines, Egypt, Kuwait, Saudi Arabia and UAE are major buffalo meat markets.
Impediment:
 Lack of uniform slaughtering policy across India.
 Lack of disease-free zones in the country.
 Non-availability of domestic standards.
 Market access issues with quality sensitive countries such as the EU.
Changes needed
 Increase in the supply of quality livestock.
 Creation of disease-free zones.
 Better implementation of existing Plan scheme for livestock health and disease control.
 Penetration into new markets such as Russia, China and the European Union.

Cashew
Strength: Installed capacity processing units that can process 15 lakh MT of cashew. India is the biggest producer, consumer and exporter of the dry fruit.
Impediment:
 Only 6.13 MT cashews were produced during 2009-10, lagging processing capacity.
 Dependency on imported raw material.
Changes needed:
 Increase in acreage to improve production, provision of subsidies to plant new high-yield varieties and utilization of wastelands for cultivation.
 Modernization of cashew processing units by sustainable financial support.

Fruit and Vegetable
Strength: India is one of the leaders in the production of fruit and vegetables in the world. The country ranks first in the production of mango, ginger and okra and second in the production of potato, garlic, eggplant, pumpkin, squash, guard, cabbage, cauliflower/broccoli and onion.
Impediments: From 2007-08 to 2009-10, export of fruit and vegetables has registered a growth of 53.42 percent in quantity terms and 100 percent in value terms. However, share of fruit and vegetable export in the international markets is less than a percent. Also, share of our exports is only 0.69 percent of domestic production of fruit and 1.69 percent of domestic production of vegetables. An estimated 30 percent of the produce goes waste post harvest.
Changes needed:
 Pre-harvest: Increase in contract farming and retail chain through corporate initiatives to ensure better quality and shelf life of fruit and vegetables for export marketing.
 Post-harvest: Augmentation of infrastructure facilities like cold storages, integrated packhouses and centre for perishable cargo at every international air port to avoid wastage of fruit and vegetable post harvest.
 Putting in place strong and robust traceability programs
 Handling perishable cargo export on priority basis at sea ports and airports.

Oil and Oil meals
Strength: India is one of the largest producers of oilseeds in the world and export from this sector stands at around $1,900 million (Rs.8,605.67 crore). This sector promises to enhance India’s overall agri exports substantially if appropriate policy interventions are undertaken.
Impediments: Countries in competition are extending extensive support to their oilseeds and oil export sector, leading to higher share in world market.
Changes needed:
 Exporters of this sector should be charged low interest rates against export credit to provide level playing field. Currently, interest payable by Indian oil seed exporters against export credit is far higher than that payable by its competitors.
 Rationalization/proper classification of HS codes with respect to sesame seed, groundnuts, oilcake and oilcake meals (solvent extracted).
 Discouraging import of finished products instead of raw materials (crude oils) via tariff alignment of edible oil with current market price.

©Entrepreneur June 2011

Tags:
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