Agricultural and Processed Food Exports

• 13 Sep 2022

For Prelims: Agriculture and Food Industry and Exports, Agriculture Export Policy 2018, B2B Exhibitions, GI Tag, APEDA

For Mains: Promotion of Agricultural and Processed Food Exports  

Why in News?

Recently, the Directorate General of Commercial Intelligence and Statistics (DGCI&S) has released the data of India’s Agricultural and processed food products exports for the first quarter of current Fiscal (April-July 2022-23).

• DGCI&S, under the Ministry of Commerce, Government of India, is the pioneer official organization for collection, compilation and dissemination of India’s Trade Statistics and Commercial Information.

What are the Findings?

• India’s Agricultural and processed food products exports rose by 30 % to USD 9.6 billion during in the first four months of the current Financial Year 2022-23 in comparison to the corresponding period of FY 2021-22.
• For 2022-23, an export target of USD 23.56 billion has been fixed for the agricultural and processed food products basket.
• Exports of fruits and vegetables registered a 4 % growth during the period.
• Basmati Rice exports witnessed a growth of 29.13 %.
• Exports of non-Basmati rice rose by 9.24% during the period under review to USD 2.08 billion.
• The export of dairy products recorded a growth of 61.91% to USD 247.

What is the Scenario of Agriculture, Food Industry and Exports?

• About:
  • The agriculture sector is the largest source of livelihood in India. India is one of the largest producers of agriculture and food products in the world.
    • In 2021-22, India’s agriculture sector growth rate was estimated to be at 3.9% as compared to the 3.6% in the previous year.
  • India produces many crops and food grains such as rice, wheat, pulses, oilseeds, coffee, jute, sugarcane, tea, tobacco, groundnuts, dairy products, fruits, etc.
  • India’s agriculture sector primarily exports agri & allied products, marine products, plantation, and textile & allied products.
• Statistics:
  • During 2021-22, India recorded USD 49.6 billion in total agriculture exports with a 20% increase from USD 41.3 billion in 2020-21.
  • Agri & allied products exports were valued at US$ 37.3 billion, recording a growth of 17% over 2020-21.
  • Rice is the largest exported agricultural product from India and contributed to more than 19% of the total agriculture export during the year 2021-22.
• Export Destinations:
  • The largest importers of India’s agricultural products are USA, Bangladesh, China, UAE, Indonesia, Vietnam, Saudi Arabia, Iran, Nepal and Malaysia.
  • The other importing countries are Korea, Japan, Italy, and the UK.
  • During 2021-22, the USA was the largest importer of Indian agricultural products.
  • Bangladesh is the major importer of Agri & allied products followed by UAE.
  • USA and China are major importers of India’s marine products.

What are the Growth Drivers?

• B2B Exhibitions:
  • Various initiatives have been taken for the export promotion of agricultural and processed food products such as organising B2B (Business to Business) exhibitions in different countries, exploring new potential markets through product-specific and general marketing campaigns by the active involvement of Indian Embassies.
• Agriculture Export Policy 2018:
  • Key objectives of the AEP are to diversify export basket and destinations, to boost high value-added agricultural exports, to promote indigenous, organic, traditional and non-traditional Agri products exports.
• Financial Assistance Scheme:
  • It is an export promotion scheme by (APEDA). The primary aim of this scheme is to assist businesses in export infrastructure development, quality development and market development.
• APEDA:
  • In a bid to give a boost to the export of Indian wine, the APEDA (Agricultural and Processed Food Products Export Development Authority) facilitated participation of 10 wine exporters in the London Wine Fair
• GI and Other Initiatives:
  • Several initiatives have also been taken to promote products having registered Geographical Indications (GI) in India by organizing virtual Buyer Seller Meets on agricultural and food products with the United Arab Emirates and on GI products, including handicrafts with the USA.

UPSC Civil Services Examination Previous Year Question (PYQ)

Q. Among the following, which one is the largest exporter of rice in the world in the last five years? (2019)

(a) China
(b) India
(c) Myanmar
(d) Vietnam

Ans: (b)

• India has been the world’s top rice exporter since the beginning of this decade primarily owing to the lift of ban on export of non-basmati varieties of rice by GoI in 2011.
• India replaced Thailand in 2011-12 to become the largest rice exporter of the world.
• Therefore, option (b) is the correct answer.

Source: PIB