Sarat Chandra IAS Academy

UPSC Civils Daily Mains Question 19th April 2020

India’s agriculture export policy 2018 is aimed at doubling agricultural exports by 2022. What is the need for the agriculture export policy? Discuss various measures taken by the government to boost agriculture exports.

India’s agriculture exports were more opportunistic or accidental in nature without proper policy backup, which did not necessarily create additional value for farmers. New policy initiatives will increase private sector investment in the agriculture value chain. Diversification of markets may offer Indian farmers a crucial additional source of income. Some of the agriculture exports from India include Basmati Rice, Pulses, Wheat, Cocoa Products, Fruits / Vegetable Seeds etc.

Need for the Agriculture export policy 2018:

  • It helps to diversify our export basket, destinations and boost high value and value-added agricultural exports.
  • Enable farmers to get the benefit of export opportunities in the overseas market
  • To promote novel, indigenous, organic, ethnic, traditional and non-traditional Agri products exports.
  • To provide an institutional mechanism for pursuing market access
  • To strive to double Indias’ share in world agri exports by integrating with the global value chain at the earliest.
  • The policy can address challenges in the exporting agricultural products from India like low farm productivity, poor infrastructure, global price volatility to market access.
  •  It helps to make concerted efforts to boost exports of high margin, value-added and branded processed products.
  •  It has created agri cells in many Indian embassies abroad to take care of agricultural trade related issues.
  • The policy focuses on agriculture export-oriented production, export promotion, better farmer realization and synchronization within policies and programmes of Government of India

Measures taken by the government to boost agriculture exports:

  • Import duty has been raised on tur, peas, chana, lentils.
  • Quantitative restrictions had also been imposed on import of tur, peas, urad & moong per year.
  •  Export of all varieties of pulses have been allowed to ensure greater choice in marketing
  • Restriction on export of all types of edible oils (except mustard oil) to encourage export of indigenous edible oils and their industries.
  • Government has imposed Minimum Import Price (MIP) on pepper and arecanut to protect the domestic growers and their livelihood from cheap import of the commodity as well as to save the domestic industries of pepper and arecanut.
  • Under Foreign Trade Policy 2015- 20, rates of reward under merchandise exports from India (MEIS) were enhanced on export of various agriculture items to offset high transit cost.
  • Government has recently initiated a comprehensive “Agriculture Export Policy” aimed at doubling the agricultural exports and integrating Indian farmers and agricultural products with the global value chains.
  • Created agri cells in many Indian embassies abroad to take care of agricultural trade related issues.

Trade plays a crucial role in delivering food to consumers worldwide. It helps to provide greater choice in consumer goods, and has played a role in reducing food insecurity across the globe.

However, the instrumentalities must be efficient and effective to fulfill the attainment of sustainable development goals and to realise the objective of doubling farmers income by 2022.

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