Relevance: GS-3: Indian Economy, mobilization of resources, changes in industrial policy and their effects on industrial growth.

Relevance: GS-2: Government policies and interventions for development in various sectors.

Key phrases: agricultural product exports, non-basmati rice exports, APEDA, Agriculture Export Policy, 2018.

Why in News?

• As Indian agricultural product exports begin to make inroads in the global market, especially leading in non-basmati rice exports, the Agricultural and Processed Food Products Export Development Authority (APEDA) is playing a significant role, accounting for 49 per cent of the overall shipments of these products.

Agri Export in India:

• India’s agricultural exports had zoomed from a mere $7.53 billion in 2003-04 to $43.25 billion in 2013-14. This came on the back of a bull run in global commodity prices, which ended just when the current NDA government took over. Exports nosedived to $32.81 billion by 2015-16, before steadily recovering to $41.82 billion in 2020-21.
• The agricultural trade surplus, which had narrowed from $27.72 billion to $8.05 billion between 2013-14 and 2016-17 due to rising imports, has also since rebounded to $20.19 billion in 2020-21.
• India’s agricultural exports grew 17.5 per cent to cross $41.8 billion in 2020-21. This came even as the country’s overall merchandise exports fell 7.2 per cent to $290.8 billion, from $313.4 billion in 2019-20.
• Agricultural growth for 2020-21 is estimated at 3 per cent, even as the Indian economy contracted by 6.5 per cent.
• Founded on February 13, 1986, APEDA began with agricultural exports to the tune of $0.6 billion. Last fiscal, its shipments of agricultural products totalled $20.67 billion and expanded its footprints to 205 countries.
• In the past decade, exports of agricultural and processed food products under the APEDA basket rose to ₹1,53,049 crore in 2020-21, from ₹42,437 crore in 2010-11.
• Non-basmati rice, India’s top export item among the many agricultural and processed food product exports in the APEDA basket, contributed close to one-fourth of the total exports in 2020-21. The top three products in the APEDA export basket in 2020-21 were non-basmati rice (23.22%), basmati rice (19.44%) and buffalo meat (15.34%). These products together account for 58 per cent of total shipments

Role played by APEDA to boost Agri Export:

• Today, the authority has become a cornerstone of the Government’s success in promoting exports of agricultural products. Of APEDA’s share in agricultural product exports, cereals and fresh horticulture items comprise 59 per cent, cereal preparations and miscellaneous processed items 23 per cent and animal products 18 per cent.
• In furthering the cause of agricultural exports, APEDA has promoted IT-enabled activities for ease of doing business in the promotion and development of exports from India. It has undertaken initiatives such as paperless office (re-engineering, digital signatures, and electronic payment facility), APEDA mobile app, phase-wise delivery of online services, monitoring and evaluation, uniform access, and virtual trade fair to make governance more efficient and effective.
• The authority has been focussing on the promotion of exports of locally-sourced Geographical Indication (GI) products besides indigenous, ethnic agricultural products to meet Prime Minister’s call for “vocal for local” and ‘Atmanirbhar Bharat’.
• APEDA has identified new products and export destinations and the trial shipments have been facilitated accordingly. Of the 150 GI tagged agricultural products till now, over 100 registered ones fall under the category of APEDA scheduled products (cereals, fresh fruits and vegetables, processed products, etc).
• In order to give further fillip to exports, country specific agri-export strategy reports have been prepared for 60 countries to tap the potential. A Market Intelligence Cell has been set up in APEDA and it has begun putting out E-market intelligence reports comprising detailed market analysis.
• APEDA has set up a farmer connect portal on its website for providing a platform for farmer producers organisations (FPOs) or farmer producer companies (FPCs), Cooperatives to interact with exporters. Around 3,295 FPO/FPCs and 3,315 exporters have been registered in the portal so far.
• APEDA has also integrated a Blockchain solution in its GrapeNet traceability platform, which is a web-based certification and traceability software system for monitoring fresh grapes exports to the European Union. The Blockchain solution, called APEDA Trust Chain, helps track all the details of the export consignment, right down to the location of the vineyards.
• Over the years, APEDA has been handling issues concerning product safety and global promotion for all its product categories, compromising over 800 tariff lines. With the agriculture awareness about environmental and food safety issues in the importing countries rising and food norms and consumer preferences changing constantly, APEDA has been sensitizing its trade exporters on export requirements.
• Considering the importance of food safety and traceability required by the importing countries of developed economies, APEDA has taken a number of initiatives in the area of quality development such as preparation of standards, procedures for identified potential products, development of residue monitoring protocol, recognition of laboratories and implementation of traceability systems.
• APEDA pioneered its first traceability system for the export of grapes to EU countries in the year 2005-06. It has now been extended to peanut (Peanut.net); organic products (Tracenet) and meat products (Meat.net). Traceability systems for more products are under development.
• APEDA organised a host of activities such as organising a virtual buyer-seller meet, showcasing Indian agri-exports strength at the Virtual trade fair platform, synergy with ministries and convergence of various schemes run by line ministries and concerned organisations

Way Forward:

• The Policy aims at addressing a whole range of issues which could potentially propel India into the top bracket of agricultural exports. It has often been recognized that integration in the global value chain is one of the most certain methods of adopting the best agricultural practices along with attaining productivity gains and cost competitiveness.
• The objective of doubling the farmer’s income will invariably require high levels of income as well as improving in the food value chain.
• The visionary approach, aggressive and consistent efforts of APEDA have enabled India to position itself as a consistent and quality supplier of agri products.

Source: The Hindu BL

Mains Question:

Q. India’s agricultural & processed food products exports have diversified in terms of its reach and products. In this respect critically analyse the role of APEDA suggesting steps to be taken ahead.