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