New Agricultural Export Policy of India and Annexa

(Agricultural Export Policy)

India is a major player in agricultural production and export business. Though export policies promote trade activities, yet sadly, there were no Agri export policies until recent times. It shows that agricultural commodity was accidental. India's world Agri export share is only 2%. Now for the very first time after independence, the Government of India has announced the first comprehensive agriculture export policy.

Introduction : India is a major player in agricultural production and export business. Though export policies promote trade activities, yet sadly, there were no Agri export policies until recent times. It shows that agricultural commodity was accidental. India's world Agri export share is only 2%. Now for the very first time after independence, the Government of India has announced the first comprehensive agriculture export policy. This policy has been drafted with a vision to double the farmer's income and increase exports up to 60 billion by 2022. To double the income of farmers', it is imperative to boost export significantly. Hence, this policy is a welcoming step in the Indian agriculture economy. It is focused on doubling the farmer's income, making competitive the export prices, and create a strong crop value chain. It is a significant shift from the production income mindset to post-production activities.

Objectives of the new Agricultural Export Policy :

The main aim of the new agrarian the export policy is to bring farmers into the mainstream of modern trade, commerce and on the same side increase their income significantly. The objectives also aim at increasing domestic production and link up with the international markets. Majorly focused on making Agri export policy stable and avail Global competitive advantage to farmers, diversified products and diversified markets, and side by side strengthening the supply chain, etc.

Benefits of new Agricultural Export Policy :

The present system will lift agrarian exports to a different level from farms to markets. It requires infrastructural developments and the policy will address this. It will promote research and development for quality products, bring reforms, regulations in force, encourage diversification of products and markets, facilitate the development of value-added products, cold storage, and cold value chain, will also bring in market-friendly agriculture, Agribusiness development and create new employment generation, provoke involvement of local farmers and boost rural economies.

Operational strategies of new Agricultural Export Policy :

As the new agricultural export policy is a paradigm shift in the Indian agriculture economy, it has formed various operational procedures such as the cluster approach, identification of products’ district and market, comparative trade advantage, link cluster in the value chain, cold value chain development, infrastructure development, link farmers to market, farmers centric institutional development, reduction in Mandi tax and implementation of WTO provisions.

Challenges of new Agricultural Export Policy :

The global business environment is competitive and taking this in mind one can see that India has a minor share in the global agricultural trade. It is difficult to implement concrete Agri export policy because of the dynamics market, domestic inflationary issues, maintenance of quality control practices at the grassroots level, infrastructural development, investment in agriculture, Mandi tax, etc. are the significant challenges in the new agricultural export policy.

A significant highlight of this policy is the integrated approach of the Government as a whole, which includes various Central ministries, State Governments, Institutions, and stakeholders. At present, India stands at 10th position in global trade but holds only 2% of the worldwide market share. The situation demands an extended due concrete policy for Agri exports. The present system is expected to enhance agricultural exports and must help India to become a global power in agricultural export. It is expected that it should not restrict Agri trade only to a few commodities; instead, it will bring various agricultural products in Agri trade. Farmers, like other business people, will have the freedom to sell their products at reasonable prices and will be freed from the exploitation of undervalued goods and eventually get his deserved share in the value chain.

Smallholding farmers and export cluster:

It is a bid task of involvement of small and marginal farmers in the export basket because they have limited resources. Hoverer, without the participation of 85 million small and marginal farmers in the export business; therefore, India’s agriculture export policy will not be successful. Agriculture export significantly influences farmers' income because, if there is export, it does impact the price of the same product in the domestic market too. A single marginal farmer may not able to export, but with combined resources of no farmers, exports can happen. Therefore, it is essential to have an active export cluster at the district level to tap the export potential of all small and marginal farmers. Through this, they can have benefits of export business. Formation of export cluster strengthens farmers by bringing common resources such as:

· Common facilities for pre-cooling, cooling, and storage, reducing the cost of market linkage, transparent standards of quality, mutually-owned insurance, etc., can be availed collectively.

· Brand building of the product, even at the local level.

· FPO’s and co-operatives linked with the farmers and exporters.

· Reaching farmers at the grass-root level and strengthening the supply chain to avoid the losses.

· Emphasis on processing and value addition.

· New start-ups in Agri-exports at the village level.

The significant share of agricultural land is with the small and marginal farmers, and this considerable portion itself is left out from the circle of agribusiness and exports. The operational export clusters at the grass-root level can channelize this major farmer’s force by their active participation in the entire value chain of agribusiness and exports, which eventually will double the farmers' income and commodities.

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