In response to a period of stagnation in international agricultural trade from 2013-2017, the Agricultural Export Policy was introduced with the aim of boosting productivity and offering support throughout the agricultural process, from pre to post-harvest management. Recognising the impact of declining agricultural commodities on the GDP and broader economic sector, India initiated significant reforms, transitioning from the Green Revolution Era.
Agricultural Export Policy Strategies
The Agricultural Export Policy was conceived as a strategic move to diversify the agricultural sector, encompassing both food and non-food sectors. The objective was clear: to position India as a key player in the global agricultural trade arena. The envisioned outcomes of this Agricultural Export Policy shift were manifold. It aimed to not only drive an increase in agricultural exports but also promised stable growth in GDP, advantages for farmers, augmented employment opportunities in rural areas, an enhanced focus on quality, expanded scope for value addition, and the creation of future market potential.
The strategies behind the Agricultural Export Policy include the following:
1. Changes in Food Patterns
The Agricultural Export Policy aims to address shifts in food consumption patterns to bolster agricultural exports.
2. Increasing Unstable Incomes
Efforts will be directed towards mitigating income instability among farmers to foster a conducive environment for increased agricultural exports.
3. Shrinking Farming Area
Strategies will be devised to counteract the challenges posed by the diminishing farming areas, ensuring sustained agricultural productivity.
4. Changing Socio-economic, Agro-climatic, and Dietary Patterns
The policy will adapt to evolving socio-economic, agro-climatic, and dietary patterns, aligning agricultural exports with emerging trends.
5. Transportation and Infrastructure
Enhancements in transportation and infrastructure will be a key focus to facilitate the efficient movement of agricultural products for export.
6. Postharvest Losses
Efficient postharvest management strategies will be implemented to minimise losses and optimise the quality of agricultural exports.
7. Generating Employment
The Agricultural Export Policy aims to stimulate employment opportunities within the agricultural sector, contributing to overall economic growth.
8. Minimising Failures in the Value Chain
Strategies will be implemented to reduce failures in the agricultural value chain, ensuring a smooth and effective process from production to export.
Objectives of the Agricultural Export Policy
The policy is driven by twin objectives, both aimed at elevating agricultural exports:
1. Establishing a Stable Trade Policy Regime
The policy seeks to create a stable and reliable trade policy framework to provide a solid foundation for the growth of agricultural exports.
2. Doubling Agricultural Exports to $100 Billion USD by 2022
A key objective is to achieve a significant increase in agricultural exports, setting a target of doubling the export value to $100 billion USD by the year 2022.
3. Creating a Platform for Better Market Access and Addressing Sanitary and Phytosanitary Issues
The policy endeavours to establish a platform that facilitates improved market access and addresses sanitary and phytosanitary issues to ensure the quality and safety of agricultural exports.
4. Increasing India’s Share in World Agri Exports through Integration with the International Value Chain
Integration with the international value chain is prioritised to enhance India’s global standing in agricultural exports, contributing to an increased share in the world market.
5. Creating a Framework to Support Farmers for Increased Benefits and Opportunities in Overseas Markets
The policy is dedicated to creating a supportive framework for farmers, enabling them to maximise benefits and capitalise on opportunities in overseas markets, thereby improving their livelihoods.
Vision of the Agricultural Export Policy
The vision of the Agricultural Export Policy is to harness the full potential of Indian agriculture, positioning the country as a global powerhouse in agriculture through the implementation of a well-defined framework and strategic policies.
Policy Framework
The policy framework can be summarised as follows:
| S. No. | Category | Features |
| 1 | Strategic | Policy Measures |
| Support for Infrastructure and Logistics | ||
| Holistic Approach to Increase Exports | ||
| Involvement of State Governments in Agriculture Exports | ||
| 2 | Operational | Focus on Clusters |
| Promoting Value-Added Exports | ||
| Promoting and Marketing ‘Brand India’ | ||
| Establishing a Strong Quality System | ||
| Attracting Private Investments into Production and Processing | ||
| Research and Development | ||
| Miscellaneous |
Strategic Recommendations of the Policy
Some of the strategic recommendations made by the policy include:
1. Policy Measures for Value Chain Enhancement
- The Department of Commerce will engage in regular discussions with public and private stakeholders to optimise agricultural exports throughout the value chain.
- Emphasis on measures to improve international market access and enhance the quality of commodities to establish a stable and trusted market chain.
2. Short-term Goal-oriented Policies
- The DoC will focus on formulating policies with short-term objectives to address inflation, domestic price fluctuations, and production volatility in specific agricultural products.
- Implementation of measures may include maintaining price stability, imposing a Minimum Support Price, and reallocating resources towards products with higher returns.
3. Export Restrictions and World Trade Organisation Engagement
- Ensuring that processed agricultural products remain exempt from export restrictions such as MEP, export duty, export bans, export quota, capping, and export permits.
- Commitment to engage with the World Trade Organisation in situations involving extreme pricing or export restrictions.
4. Liberalisation in Import for Value Addition and Re-export
- Advocating for liberalisation in the import of agricultural products, specifically for value addition and subsequent re-export.
5. Policy Reform through Collaboration
- Utilising key entities such as the Directorate General of Foreign Trade, Export Promotion Councils, Commodity Boards, and Industry Associations to reform and enhance the agricultural export policy.
- Facilitating collaboration among these entities to drive policy reforms and improvements in the agricultural export sector.
Infrastructure and Logistics for Agricultural Export Growth under the Policy
The recommendations on infrastructure and logistics under the policy include:
1. Creation of Strong Infrastructure
- The Agricultural Export Policy emphasises the establishment of a resilient infrastructure to develop a strong agricultural value chain, ultimately boosting agricultural exports.
2. Key Infrastructure Facilities for Export Enhancement
- Integration of pre and postharvest handling facilities to optimise the quality and shelf life of agricultural products.
- Development of storage and distribution facilities for efficient logistics management.
- Establishment of processing facilities to add value to agricultural products before export.
- Enhancement of road and exit point infrastructure at ports to facilitate smoother trade operations.
- Implementation of Mega Food Parks to consolidate and streamline food processing activities.
- Establishment of state-of-the-art testing laboratories to ensure product quality.
- Integration of Integrated Cold Chains to preserve the freshness of perishable goods during transportation.
Involvement of State Governments in Agricultural Exports
The recommendations on state government involvement under the policy include:
- Encouraging states to undertake reforms based on socio-economic, political realities, and agricultural nuances to enhance export quality and quantity.
- States actively participating in identifying challenges faced by exporters, organising buyer-seller meets, and facilitating state-level exporters’ participation in international fairs.
- Collaboration with State and Central governments to leverage schemes and maximise export potential.
- Coordination with State Export policies to encompass inland and marine fisheries, promote good agricultural practices, establish quality assurance systems, plan pre and postharvest infrastructure, and support the growth of food processing industries.
Operational Recommendations
The operational recommendations under the policy include:
1. Focus on Clusters: Improving Production and Supply Chain Efficiency
- Emphasis on cluster development to enhance agricultural and horticultural production in India.
- Utilisation of the cluster development approach to improve pre and postharvest management, upgrade supply chains, and increase production levels.
- Central government support for state governments in:
- Identifying suitable production clusters.
- Conducting farmer registrations.
- Digitising land records.
- Promoting Farmer Producer Organisations.
- Promotion of Agri Export Zones for successful cluster implementation, facilitating value addition and higher exports.
2. Promoting Value-Added Exports: Focusing on Indigenous and Tribal Products
- Policy focus on promoting value-added, indigenous, and tribal products to address the current lack of processing or value addition in exports.
- Implementation of research initiatives to identify exportable products and create effective branding strategies for increased value-added product exports.
- Financial support to stakeholders involved in the export of commodities such as:
- Non-forest produce.
- Wild herbs.
- Medicinal plants.
- Extracts.
- Lac.
- Essential oils.
- Cashew, cashew apple jams and pastes, flavoured cashew.
- Encouraging the production of value-added products by providing financial incentives and support.
- Regulation through AEZ and Attracting Foreign Direct Investment
- Introduction of Agri Export Zones as a mechanism to produce value-added products for specific countries, regulated by the World Trade Organisation.
- Alignment with successful models like Special Economic Zones in sectors like IT, Textiles, and Pharmaceuticals to attract Foreign Direct Investment into Agricultural Exports.
Final Thoughts
The Agricultural Export Policy is a comprehensive framework designed to propel India into a global agricultural powerhouse. By focusing on strategic measures, operational efficiencies, and digital transformations, the policy aims to enhance infrastructure, promote value-added exports, and encourage private investments. The emphasis on organic production, simplified postharvest processes, and digitalisation align with global standards, promoting international market access. The collaborative efforts between government bodies like APEDA and the private sector underscore the commitment to sustainable growth. Overall, the policy not only envisions substantial increases in agricultural exports but also strives to empower farmers, improve product quality, and elevate India’s standing in the competitive global market.
