COMMODITY
Union Cabinet likely to approve agro-export policy
Dec-06-2018

Union Cabinet of India is likely to approve the much awaited agro-export policy, to boost exports of agriculture commodities such as tea, coffee and rice and increase the country's share in global-agri trade. The Ministry of Commerce had sent the final agri export policy to the Cabinet. It aims to help in doubling farmers’ shippment income to over $60 billion by 2022 and, give a leg up to farm sector exports.

The proposed policy focuses on all aspects of agricultural exports including modernising infrastructure, standardisation of products, streamlining regulations, curtailing knee-jerk decisions, and focusing on research and development activities. A key recommendation is expected to be the removal of needless restrictions on export of agricultural commodities besides reforms in the APMC (Agriculture Produce Market Committee) Act. The implementation of the policy will have an estimated financial implication of over Rs 1400 crore.

On the infrastructure front, the government would identify ports that are handling agri exports and perishable berths, agri jetties, railways wagons would be provided. Round-the-clock single window clearance would be extended for perishable exports and imports at Mumbai, Delhi and Kochi airports. As part of the policy, the government is likely to undertake a detailed analysis to identify focus products based on five parameters -- global trade, five-year impact potential, India's current competitiveness, scope for value addition and future market potential. To promote value added products, the government might take certain steps including promotion of R&D and marketing of biscuits and confectionary, dehydrated onion, frozen vegetables, medicinal plants and essential oils.

Agricultural products constitute over 10% of the country's total merchandise exports. The main commodities exported by India include tea, coffee, rice, cereals, tobacco, spices, cashew, oil meals, fruits and vegetables, marine products, meat, dairy and poultry products. Exports of value-added items are significantly low. India's exports in 2017 were about $31 billion, which is over 2% of the world agriculture trade.

Federation of Indian Export Organisations (FIEO) President Ganesh Kumar Gupta commented that  a stable policy is fundamental to boost agri exports.'Switch on and off policy' in the past has deprived India to be considered at a reliable supplier.

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