The Union Cabinet has endorsed the Agriculture Export Policy, 2018. This policy could potentially pave the way for doubling farmers’ income and firmly establish India as a global powerhouse in agriculture. The policy’s vision is to seize the export potential of Indian agriculture through appropriate policy mechanisms.
Objectives of the Reformed Policy
Primarily, the goals of the Agriculture Export Policy are far-reaching and transformative. The plan is to double agricultural exports from their current standing at approximately US$ 30+ Billion to an ambitious US$ 60+ Billion by 2022. Eventually, the objective is to hit the US$ 100 Billion mark within the subsequent years, relying on a steady trade policy regimen.
The policy also seeks to diversify the export basket and destinations and to fuel high value and value-added agricultural exports, including perishables. Additionally, it aims to boost the export of unique, indigenous, organic, ethnic, traditional, and non-traditional agricultural products.
Beyond just promoting exports, the policy also seeks to provide an institutional mechanism to deal with market access, eliminate barriers, handle sanitary and phytosanitary issues, and enable farmers to capitalize on export opportunities in foreign markets.
The Need for an Agriculture Export Policy
The policy’s introduction is a response to a set of challenges that restrict the successful exporting of agricultural products from India. These hurdles include low farm productivity, insufficient infrastructure, global price fluctuations, and limited market access.
In 2016, India’s share in global exports of agricultural products was only 2.2%. The majority of its exports are low value, semi-processed, and marketed in bulk. The inconsistency in quality and standardization, along with the inability to rein in losses across the value chain, hampers India’s ability to export its vast horticultural produce.
The policy addresses these issues with strategic measures and key recommendations, including infrastructure and logistics enhancements, reforms in strategic policy, and a whole government approach to boosting exports.
Key Recommendations of the Agriculture Export Policy 2018
| Strategic Measures | Reforms |
|---|---|
| Infrastructure and Logistics Boost | Identifying ports for export, improving port infrastructure |
| Whole Government Approach | Coordination within various ministries responsible for agricultural production, processing, transportation and export |
| State Government Involvement | Alignment of state agricultural policies with national goals, identification of departments for promoting agricultural export |
| Focus on Export Centric Clusters | Management of pre- and post-harvest production, improved supply chain |
| Promoting Value Added Exports | Promotion of indigenous and tribal products, standardization of organic food parks |
| Research and Development | Private industry-led R&D, innovations in packaging, product development as per importers’ preferences |
Looking Towards a Better Future
The new policy will play an instrumental role in increasing the income of farmers by expanding agricultural exports. A reform this significant requires the adoption of various strategies such as liberalizing land leasing norms and implementing Model Agricultural produce market committee (APMC) act across states.
Active participation of state governments is vital as this aligns state agricultural policies with larger national objectives. Digitization of land records, geo-mapping of lands, registration of farmers, and farm producer organizations (FPOs) is critical to smooth agricultural exports.
Through focused R&D efforts, infrastructural upgrades, and a dedicated drive towards quality enhancements, the revamped Agriculture Export Policy holds the promise of creating a brighter, more prosperous future for farmers across India.