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Challenges and Strategies in Agriculture Exports

The document discusses the challenges and initiatives related to India's agricultural exports, highlighting issues such as low productivity, poor export competitiveness, and market inefficiencies. It outlines various government programs and recommendations aimed at improving agricultural practices, enhancing market access, and supporting farmers through reforms and financial assistance. Additionally, it emphasizes the need for climate-smart agriculture and technological advancements to ensure food security and economic growth in the sector.

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0% found this document useful (0 votes)
80 views11 pages

Challenges and Strategies in Agriculture Exports

The document discusses the challenges and initiatives related to India's agricultural exports, highlighting issues such as low productivity, poor export competitiveness, and market inefficiencies. It outlines various government programs and recommendations aimed at improving agricultural practices, enhancing market access, and supporting farmers through reforms and financial assistance. Additionally, it emphasizes the need for climate-smart agriculture and technological advancements to ensure food security and economic growth in the sector.

Uploaded by

harrypoter010190
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

2022-23: USD 53.

1 billion
Data
India exports more than 7 percent
of its food grains

Low per capita productivity

Supply SIde Poor Export Competitiveness

Government Policies: Inconsistent


and restrictive regime

Economic

Tariff Barriers

Issues Demand Side Non-Tariff Measures

International Trade Agreements

Post Pandemic challenges

Existing at the lower end of the


global value chain
Other Issues
Declining Exports

Agriculture Export Promotion


Plan of APEDA

NPOP (National Programme for


Organic Production)

Agri Udaan Program

Agriculture Exports Initiatives SAMPADA

MSP models, Model Land leasing


NITI Aayog
Act etc

Market Access Initiatives, Trade


Infrastructure for Export Scheme,
APEDA, MPEDA, Tea board,
Other Initiatives Rubber boards, Spices board,
Land record digitisation,
Merchandise Exports from India
Scheme

High Level Group (HLEG) on agri


exports Recommendations

Holistic Institutional, operational


Ho
and infrastructural reforms

High value agri commodities with


relative advantage for India
focused export policy - Organic
produce, Basmati rice, marine
produce, vegetables etc

Rt Re negotiations of RTAs and BTAs

Information symmetry on Market


I
for exporters

Cu Convergence of multiple schemes

Link exporters/processors to
L
producers directly
WF
Testing infrastructure to
Tu harmonize quality with
international standards

Re visit issues of farm subsidies,


market denials and import duties
R
on bilateral, regional and global
trade forums

Efficient global and domestic


E
value chains development

Paradigm shift from access


Pe
exports to targeted exports

Focus on FPIs with high quality


Focus
training and skilling initiatives
Low Number of APMCs
Infrastructure
Lack of Infrastructure in Agricultural
and Market
Markets
Access

High Wastages in Supply Chain

Compulsory Selling to APMCs or


Government Procurement Node at MSP

Fragmentation of Markets
Market
Dynamics and
Lack of Unrestricted Movement
Farmer
Realisation
Less Farmers’ Price Realisation

High Marketing Cost

Artificial Monopoly and Lack of Competition

Exploitation by Intermediaries
Issues
Corruption/Collusion by Adhatiyas
Market
Practices Political Interference & Corruption and
and Cartelisation
Governance
Limited Farmer Representation

High Incidence of Market Charges

Non-Transparency in Utilization of Levies


Collected

Open Auction

Discourages Direct Selling

Selling Can range


Mechanisms and High Mandi Fees from 0.5% to
Pricing 5%.
APMCs
Lack of Linkages: Interstate and
intrastate fragmentation

Lack of MSP Updation

“Agriculture Index” by NITI Aayog

SAMPADA, Operation Greens, “TOP to


TOTAL”, Promotion of FPOs Scheme, E-NAM

E-marketing Portal for Organic products.

Transport and Marketing Assistance


Scheme by MOCI for faster export focused
movements.

GrAMs

Schemes Agriculture Fund

Model Agriculture Produce and Livestock


Marketing (Promotion and Facilitation) Act,
2017

Integrated Scheme for Agri Marketing


(ISAM)

Kisan Rail services

Krishi UDAN

Agri Marketing Funds


Recommendation of Dalwai
Committee to create mini-markets
to bridge the deficiency of APMCs.

AgTech startups should be


focused upon for a price
discovery mechanism.

Producer consolidation and


contract farming : Consolidation
WF
of small and fragmented farms
into more viable holdings will
improve producers’ access to
finance and quality inputs,
besides enabling better price
realisations.

PPP model in Agri marketing and


transport (Ex: Uberization of Agri
transport)
APMC
Unified Market Area

Setting Up of Market Yards


Features of
Model Market Yard of National
Agricultural Importance (MNI)
Produce
and Promotion of Direct Interface
Livestock
Freedom of Choice to Farmers
Marketing
(Promotion Promotion of National Market
&
Facilitation) Promotion of E-Trading
(APLM) Act,
2017 Single Point Levy of Market Fee
Across State

Full Democratization of Market


Committee and Rationalization of
Market Fee and Commission
Charges
Technological Stagnation in
Agriculture

Increased Dependence on Food


Imports

Need Political and Natural Crises

Food Security Threats

Geopolitical Pressures

Introduction of new high-yielding


wheat varieties (HYV) from
Mexico.
1
Establishment of the Agricultural
Prices Commission and Food
Corporation of India (FCI) to
manage minimum support prices
(MSP)

Spread of HYV technology to rice.

Production and yields of


Phases 2 foodgrains grew at 3.1% and 2.5%
per annum, respectively.

Reduction in rural poverty from


56% to 50%.

India maintained its status as a


food self-sufficient country.
Green Revolution Significant increases in rice and
3
wheat production.

Creation of large grain buffer


stocks.

Increased Demand for


Agricultural Laborers

Increased Production

Achievements Spillover Impact on Industries

Increased Income Levels of


Farmers

Enhanced Food Security

Exclusion of Non-Staple and Non-


Food Crops

Limited High-Yield Variety (HYV)


Seeds

Increased Regional Disparities


Issues
and Limited Impact

Environmental Degradation

Water-Intensive Crops and Water


Table Reduction

Unemployment
Fragmented Land Holdings

Stagnant Production

Pre-Harvest Issues Irrigation Problems

Access to Formal Credit


Agrarian High input costs
Distress
Over Reliance on Monsoons
Factors leading to it Production Issues
Presence of weeds and pests

Market Fluctuations

Absent Market Opportunities


Post-Harvest Issues
Lackadaisical implementation of
schemes/policies

Inadequate Infrastructure

Farmer Suicide

Debt
Farmers
Poverty

Low Price Realization

Rural to Urban Migration


Village
Feminization of Agriculture
Impact
Over-Urbanization
Cities
Food Inflation

Decline in Agricultural Export

Government Human Development Index

Economic Transformation
Data 11,290 suicides: 2021 (NCRB)

More concentrated in Vidarbha,


Marathwada, Northern Karnataka
Regional Factor etc

Mostly in drought prone areas

Lower than normal monsoon


rainfall

Geographical Rainfed area

Non-diversified agriculture

Decreasing soil productivity

Falling prices of agri commodities

Low penetration of crop insurance

Delay in insurance disbursal


Reasons Institutional
Farmer Inadequate infrastructure:
Storage, Logistics and processing
Suicide leading to distress sale

Poor agro-ecological planning

Inadequate R&D levels: Poor


quality seeds used

Leading to low productivity

Technological Crops like Bt-cotton failed in


rainfed regions or due to other
reasons (Whitefly attacks in
Punjab)

High farm mechanisation costs

W - Water Diversification and


Water Harvesting:

E - Ensure Better Price Realisation

L - Land Farming Techniques (Dry)

F - Financial Security through


WF Mixed Farming and Institutional
Credit

A - Agriculture Marketing Reforms

R - R&D on Resistant Crops

E - Expand Crop Diversification


Between 2012 to 2021, 13 Indian
Data states have implemented FLW
schemes.

Stop vicious cycle of indebtedness

Provides immediate relief until


structural reforms are
implemented.

Access to formal credits: Helps


Farmers clear previous loans, enabling
access to new loans from formal
institutions. (Reduces Debt
Overhang)

Creates Resilience in Farmers:


Reduces vulnerabilities from
Argument
climate change and adverse trade
s in
deals.
Favour
Clears NPAs, freeing up resources
Banks for new loans and economic
activities.

Ensures Food security


Society
State’s moral obligation: It is the
duty of a welfare state to support
its population in distress.

Moral Hazard
Loan Does not address “Root Cause”
Waivers
Prone to errors in inclusion and
Farmers
exclusion.

Uncertain Impact

Agri labourers: not covered

Eroding healthy credit culture


Banks
Increased NPAs
Unfavourabl
e Arguments Moral responsibility of states to
do reforms

State Demand side Inflation

Affects fiscal consolidation

Reduced public investment

Society Prone to corruption

Increase the Coverage and


Availability of Institutional Credit

Effective Law to Regulate Non-


Institutional Sources of Credit

Create a Farmer Distress Index

Use Grant to Support Distressed


Farmers
WF
Credit Guarantee Fund for
Agricultural Loans

Improve Farmer’s Access to


Markets

Address Infrastructure Deficit in


Rural Areas

Effectively Deploy Crop Insurance


Population Growth

Need Threatening Food and Nutritional Security

Impacts of Climate Change

High Vulnerability: 51% of India's cultivated


area is rainfed, making it highly susceptible
to climate variability and extreme weather
events.

Temperature Increase: Average


temperature rise of ~0.7°C from 1901 to
2018, primarily due to greenhouse gases,
affecting crop growth cycles and
productivity.

Increased dry spells.


Changes in Rainfall Patterns:
increase in daily precipitation extremes.
India Specific Needs
Increased Drought Frequency

Increased Flood and Cyclone Proneness


impacts agricultural stability.

Climate Smart Leading to increased vulnerability to


infestations
Agriculture Modified Pest Behavior:
Eg, Locust attack 2020

Economic Growth and Poverty Reduction

Collaborative Agricultural Supply Chain

Robust Metrics and Assessment

Financial and Economic Barriers


Challenges
Technological and Knowledge Barriers

Policy and Regulatory Challenges

Environmental and Climate Variability

Creation of Single Nodal Agency

Comprehensive Climate Change Mitigation

Prominence to Village Panchayats

Enhancing KVKs

Ensuring Food and Nutritional Security

Promotion of Crop Diversification and


Water Conservation

Research in Climate Smart Practices

Availability of Farm Inputs and Finance


WF
Promotion of Organic/Natural Farming

Upgradation/Digitization of Agriculture
Markets

Promotion of Forest Conservation and


Natural Wetlands

Promotion of Millets and Coarse Grains

Support for Carbon Markets

Information Dissemination and Training for


Farmers

Expedite Recruitment in Research Institutes


Environmentally Friendly
Practices

Reduced Indebtedness

Enhanced Soil Fertility


Benefits of ZBNF
Versatility and Water
Conservation

Promotion of Biodiversity
Nutritional Benefits

Reversion to conventional farming


ZBNF
Uncertain impact on productivity
and income
Issues
Declining population of Indian
breed cows

Government expenditure disparity

Bharatiya Prakritik Krishi


Steps Paddhati (BPKP) Scheme for
Natural Farming

Strengthening Farmer Education

Promoting Indigenous Cow Breeds

Enhancing Research and


Development

Way Forward: Strengthening Market Linkages

Government Support and Policy


Reforms

Scaling Up ZBNF Adoption

Collaboration and Knowledge


Sharing
Rising Indebtedness

Land Fragmentation

Low average monthly income

Need High Input Costs

Rampant Poverty

Population pressure on the sector

Low price remuneration

Liberal definition of farmers

Agri diversificationc

Incentivize private investment in


agri sub-sectors
Doubing Farmers
Income "Farmers as Partners"

Reform Agri Marketing

State laws based on Model APLM


Act, 2017

Increase access to institutional


credit

Increase insurance penetration


for risk mitigation

Strengthen forward linkages with


MSMEs to grow employment as
Dalwai Reccom well as farm income

Land pooling incentivisation

Model Land Leasing Act, 2016


Undertake land reforms
Increase pace of land record
digitisation

Draft Model Contract Farming Act

Bridge Data Gaps for evidence


based policy making

Climate Change mitigation based


on a micro agro-climatic zone
approach

Scale neutral technology keeping


in mind varying farm sizes

Establish a multi stakeholder


nodal executive body at national
level
PM’s 7 point Action Plan

Budget allocation: 1,25,035.79


crores in 2023-24 .

Income support: PM KISAN

Steps Pradhan Mantri Fasal Bima


taken Yojana (PMFBY)
for
doubling Institutional credit

farmer’s Fixing of Minimum Support Price


income (MSP)

Promotion of organic farming

Micro Irrigation Fund

National Beekeeping and Honey


DFI Mission (NBHM)

MIDH - Cluster Development


Programme

Modernize Agriculture

Niti Aayog Resource utilisation efficiency


Strategy
Strengthen Extension services
for New
India @75 Agri diversification

Value Chain Development

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