Agri Export Policy

Ministry of Commerce & Industry

Context:

The Agricultural and Processed Food Products Export Development Authority (APEDA) has signed MoUs with AFC India Limited and National Cooperative Union of India (NCUI) in August 2020.

About MoU:

The MoU with AFC India Ltd. has been signed for cooperation in the areas of critical technology intervention requirements for organic as well as chemical/ residue free production systems; development of Common Processing Centres; effectively supporting the entire value chain system in clusters identified under the Agriculture Export Policy (AEP); developing pre-production, production, post harvesting, primary processing, secondary processing and transportation/ distribution guidelines for all the stakeholders including farmers to meet international compliances, capacity building of various stakeholders and providing technical support to tribal farmers & groups, federations,  organizations working with farmers.

Agri Export Policy

The Government introduced a comprehensive Agriculture Export Policy in December 2018, with the following objectives:

1. To diversify our export basket, destinations and boost high value and value added agricultural exports, including focus on perishables.
2. To promote novel, indigenous, organic, ethnic, traditional and non-traditional Agri products exports.
3. To provide an institutional mechanism for pursuing market access, tackling barriers and dealing with sanitary and phytosanitary issues.
4. To strive to double India’s share in world agri exports by integrating with global value chains.
5. Enable farmers to get benefit of export opportunities in overseas market.

Vision

Harness export potential of Indian agriculture, through suitable policy instruments, to make India global power in agriculture and raise farmers income.

Policy recommendations

The policy recommendations in this report are organized in two broad categories – strategic and operational.

Strategic

1. Policy Measures – Discussions with public and private stakeholders across the agricultural value chain highlighted certain structural changes that were required to boost agricultural exports. These comprise of both general and commodity specific measures that may be urgently taken and at little to no financial cost. The subsequent gains, however, are aplenty.
2. Infrastructure and logistics – Presence of robust infrastructure is critical component of a strong agricultural value chain. This involves pre-harvest and post-harvest handling facilities, storage & distribution, processing facilities, roads and world class exit point infrastructure at ports facilitating swift trade. Mega Food Parks, state-of-the-art testing laboratories and Integrated Cold Chains are the fundamentals on which India can increase its agricultural exports. Given the perishable nature and stringent import standards for most of the food products, efficient and time-sensitive handling is extremely vital to agricultural commodities
3. Holistic approach to boost exports – Agricultural exports are determined by supply side factors, food security, processing facilities, infrastructure bottlenecks and several regulations. This involves multiple ministries and state departments. Strategic and operational synergy across ministries will be key to boosting productivity and quality.
4. Greater involvement of State Governments in Agriculture Exports

Operational Recommendations

1. Focus on Clusters : There is a need to evolve and put in place institutional mechanism for effective involvement and engagement of small and medium farmers for entire value chain as group enterprise(s) within cluster of villages at the block level for select produce(s). This will help to realize actual benefit and empowerment of farming community to double their income through entire value chain
2. Promoting value added exports
   • Product development for indigenous commodities and value addition
   • Promote value added organic exports
   • Promotion of R&D activities for new product Development for the upcoming markets
   • Skill development
3. Marketing and promotion of “Brand India”
4. Attract private investments in export oriented activities and infrastructure.
5. Establishment of Strong Quality Regimen
6. Research and Development – Agricultural research and development (R&D) led by private industry along with higher infrastructure spend by the government will be the key to boosting agricultural exports.
7. Miscellaneous – Creation of Agri-start-up fund: Entrepreneurs are to be supported to start a new venture in Agri products exports during their initial period of establishment.