It has recently come to attention that the Agricultural and Processed Food Products Export Development Authority (APEDA), in collaboration with the State Government of Andhra Pradesh, have successfully dispatched the first shipment of high-quality bananas from Anantpur in Andhra Pradesh. The cargo was sent to the Jawaharlal Nehru Port in Mumbai for further exports to international markets.
The Challenge of Long-distance Cargo Transport
One of the major concerns affecting the viability of export shipments is the long-distance transit. High transport costs and quality losses during the journey are the primary drawbacks. However, this time, significant efforts were undertaken to minimize the transit time by using refrigerated rail containers. These freight transports are specifically designed to maintain a suitable temperature for sensitive cargo, ensuring freshness and quality upon arrival.
The Agri Export Policy Introduced in 2018
In acknowledgment of the crucial role agriculture plays in the Indian economy, the Government of India launched the Agri Export Policy in 2018. This policy set several notable objectives towards enhancing agricultural exports.
Objective: Doubling Agricultural Exports
One of the main goals of this policy is to double agricultural exports from the present value of $30 billion to $60 billion by 2022. The policy also aims to raise this figure to $100 billion in a few years post-2022 while maintaining a stable trade policy regime.
Diversification and Promotion of Non-Traditional Agri Products
The policy also aims to diversify the export basket and promote exports of high-value and value-added agricultural items, focusing on perishables. Moreover, it encourages the export of novel, indigenous, organic, ethnic, traditional, and non-traditional agricultural products.
Objective: Enhancing Market Access
The policy also seeks to provide an institutional mechanism for pursuing better market access, tackling barriers, and dealing with sanitary and phytosanitary issues that often hinder export progress.
Objective: Globally Integrating India’s Agriculture
Through this policy, the Government of India strives to double India’s share in world agriculture exports. The objective is to integrate India’s agriculture with the global value chain at the earliest possibility.
Benefitting Farmers: An Important Goal
One of the policy’s crucial goals is to enable farmers to harness export opportunities in the overseas market, thereby benefiting from the potentially higher income.
The Vision of the Agri Export Policy
The vision behind this policy is to harness the export potential of Indian agriculture, using suitable policy instruments. The ultimate aim is to elevate India as a global powerhouse in agriculture and improve the income of farmers.
The Agri Export Policy introduced in 2018 holds the promise of transforming India’s agricultural landscape. By focusing on diversification, promoting non-traditional products, market access, global integration, and farmer benefit, it aims to claim a larger share of the global agriculture market.
