Boosting India’s Agricultural Exports: Challenges, Barriers, and Reforms

Why in the News?

Amid global trade tensions and rising protectionism, India seeks to enhance its agricultural exports by addressing trade barriers, policy restrictions, and GM crop regulations. Ongoing Bilateral Trade Agreement (BTA) negotiations with the US add urgency to export-driven agricultural reforms.

Boosting India’s Agricultural Exports: Challenges, Barriers, and Reforms

Challenges in Global Trade and India’s Position:

  • The US under Trump imposed high tariffs on imports from Canada, Mexico, and China, violating WTO’s Most Favored Nation (MFN) rules.
  • Retaliatory tariffs have been introduced by Canada and China, leading to a global trade war.
  • India is negotiating a Bilateral Trade Agreement (BTA) with the US while facing pressure to lower tariffs.

Barriers to India’s Agricultural Exports

  • Despite being the largest producer of milk, India contributes only 25% to global dairy exports.
  • Marine and fisheries exports remain low at 4%, despite India’s vast coastline.
  • Livestock farming potential is underutilized, affecting meat and poultry exports.
  • GM crops like cotton, soybean, and pulses could boost yields, but their cultivation is restricted in India.
  • Policy constraints such as frequent bans, minimum export price restrictions, and price controls limit farmers’ export potential.

Policy Reforms to Enhance Exports

  • Reducing tariffs can help integrate India into global supply chains and increase export competitiveness.
  • Allowing GM crops and streamlining agricultural policies will improve productivity and exports.
  • Easing trade barriers and export restrictions will enable farmers to access global markets.
  • Learning from countries like the Netherlands, which has high agricultural exports despite limited land, can guide India’s reforms.
  • Expanding India’s agricultural exports will make the country self-sufficient in key commodities like pulses and edible oils while strengthening its global trade presence.

Key Government Initiatives to Boost Agri-Exports:

  • Digital Platforms for Agri-Exports: Platforms like Safe Food Export Traceability Portal and Farmer Connect Portal enhance transparency and ease export processes.
  • Agriculture Export Promotion Plan (AEPP): APEDA’s scheme boosts agricultural export potential.
  • Marine Export Promotion by MPEDA: Enhances seafood exports through incentives and programs.
  • Export Clusters & ODOP: Promotes regional specialties like mangoes (Lucknow) and oranges (Nagpur).
  • National Programme for Organic Production (NPOP): Certifies organic farming to support organic exports.
  • Agri Udaan Programme: Supports agri-tech startups with mentorship.
  • Market Access Initiative (MAI): Expands Indian agri-products in new global markets.
  • Merchandise Exports from India Scheme (MEIS): Offers export incentives for agri-products.
  • International Negotiations: India participates in WTO talks for favorable export terms.

Agriculture Export Policy 2018

  • Aims to double India’s share in global agri-exports.
  • Bridges the Ministry of Commerce & Industry with Ministry of Agriculture.
  • Focuses on value-added agricultural exports and global value chain integration.
  • Encourages product-specific clusters with Farmer Producer Organizations (FPOs).
  • SFAC helps address FPO challenges.
  •  India is reviewing its Agri Export Policy to adapt to shifting export trends.