Business of Agriculture March April 2019 Edition | Page 33
onions or wheat, the government restricts the exports
of these commodities.
Experts have pointed out repeatedly that self-
sufficiency does not need to be at the cost of
restricting exports. The solution, as they see it, lies
in improving yields per hectare. If India’s yield per
hectare improves, there would be enough to feed
the population, along with ample portions to export,
resulting in an overall thrive in prosperity. But for that
to happen, the government has to focus on sustainable
methods for improving productivity. Efforts like the
Green Revolution have not been sustainable over
the long term, so, other radical plans need to be
chalked out.
The good news here is that the government of
India, in 2018, announced that it would take steps
to improve agri-commodity exports in order to
ensure better dividends for farmers. The government
has announced that it will invest Rs 1,400 crore
to create specialised clusters in several states to
focus on specific produce intended for exports. The
Agriculture Export Policy 2018, aims to double farm
exports from $30 billion to $60 billion by 2022. “The
policy will focus on organic and indigenous crops”, said
Commerce & Industry Minister, Suresh Prabhu, when
he announced the policy. Other than this it is also
equally important to boost exports of value-added
farm produce.
Finding the Right Policy
The major issues, however, are those that cannot be
resolved with just better warehousing or improved
fertilizers. We are talking about policy. We have
The Agriculture Export Policy 2018 is the much-
needed step that the government has taken to
improve agricultural exports. At the same time,
relying on the government alone to boost exports
may not be the best way ahead. Along with such policy
measures, tax benefits and free power, the sector
also needs financial help like better access to credit
to boost productivity and transport of agricultural
commodities.
Untapped Potential
The
Agriculture
Export Policy
2018 is the
much-needed
step that the
government
has taken
to improve
agricultural
exports
It’s not just about productivity, though. There is also
the fact that India’s logistics sector, especially for farm
produce, is woefully insufficient and under-developed.
Investments in logistics, warehousing, cold-chain and
the like are needed for agricultural commodities to be
transported and stored without spoilage.
seen that the government often bans exports of
certain agri-commodities when there is a shortage.
Unfortunately, this is a double-edged sword, because
the government also then opens the floodgates to
cheap imports of those products. Imported goods
then often end up being cheaper than domestic
produce, leading to worse times for the farmers in
India.
When it comes to export, India, like many other
countries of the world, is governed by the World
Trade Organisation (WTO). The WTO has rules
in place to ensure that trade between countries is
equitable and fair. Under these rules, India is often
accused of subsidising farmers heavily to keep prices
low. While such subsidies make it possible for Indian
exporters to export at lower prices, other countries
can challenge this, as witnessed by the recent
challenges filed by the US and Guatemala. The need of
the hour then is the creation of incentive schemes that
are WTO-compliant while also giving agri-exporters
and farmers the support they need.
Business of Agriculture
| March-April 2019 • Vol. V • Issue 2
33