India’s Agricultural Exports Declining Rapidly! What Is Expected From The New Export Policy?

India might need a new export-import policy as the target set in 2018, to reach $60billion was not achieved. Exports declined during the initial years of the BJP government, from $43.25 billion in 2013-14 to $35.6 billion in 2019-20. But there was also an increase in imports from $15.53 billion to $21.86 billion.

Was The 2018 Export Policy A Bit Too Ambitious?

The government introduced an Agricultural Export Policy in December 2018. The policy aimed to improve the Indian agriculture potential by sustainable policy instruments. 

The policy also focused on making India a global power in agriculture and improving the income of farmers. With political ups and downs in the country, it is hard to make whether the export policy of 2018 was the right decision, or was it just a bridge too far. 

Objectives Set For 2018 Agricultural Export Policy

• To double agricultural exports from $30 billion to $60+ billion by 2022.

• Maintain a stable trade policy regime.

• Promote exports of indigenous, organic, traditional, and non-traditional products.

• Double India’s share in global agricultural exports.

• Enable farmers to benefit from export opportunities in overseas markets.

• Provide solutions for pursuing market access, tackling barriers and dealing with sanitary issues.

Why Did The 2018 Export Policy Not Work?

The 2018 export policy was not achieved due to several factors.

• The demand for agricultural exports reduced due to the fluctuating global commodities prices, and trade wars.

• Inadequate infrastructure, supply chain, and limited technology.

• Changes in trade policies brought uncertainty.

• Problems arose due to sanitary and phytosanitary standards.

• Unpredictable weather conditions.

• Inadequate funds to support farmers and production.

• Global competition.

• The Russia-Ukraine war affected trade routes.

• The COVID-19 pandemic impacted production and export activities.

Is There A Need For A New Agri-Trade Policy?

The government needs to implement a new agriculture trade policy to improve productivity, value addition, market access, branding, and more. 

The reasons for a new agricultural policy are

• Flighting market fluctuations.

• Face export competitiveness.

• Enhance technological innovations.

• Promote organic and processed foods.

• Maintain environmental sustainability.

• Prepare for climate variations.

Schemes/Plans Introduced To Promote Agricultural Export

The steps taken to promote agricultural trade are:

• Trade Infrastructure for Export Scheme (TIES)

• Market Access Initiatives (MAI) Scheme

• Agricultural & Processed Food Products Export Development Authority (APEDA)

• State-specific Action Plans

• Transport and Marketing Assistance Scheme

• Farmer Connect Portals by APEDA

Conclusion

Overall, the Agricultural sector of India needs a new trade policy to achieve the aims and goals set as the sector provides the largest livelihood in India. The government must focus more on the incomes generated and the livelihood of farmers.

To learn more about the agriculture trade policy in India, visit https://agriwelfare.gov.in/en/AgricultureTrade.