06/10/2021 | Press release | Distributed by Public on 06/10/2021 01:48
Secretary, department of Commerce, Government of India Dr Anup Wadhawan today said that Agriculture Exports have performed well during 2020-21. During the media interaction, he informed that after remaining stagnant for the past three years (USD 38.43 billion in 2017-18, USD 38.74 billion in 2018-19 and USD 35.16 billion 2019-20), the export of agriculture and allied products (including marine and plantation products) during 2020-21jumped to USD 41.25 billion,indicating an increase of 17.34%. In INR terms, the increase is 22.62% with exports during 2020-21 amounting to Rs. 3.05 lakh crore as compared to Rs. 2.49 lakh crore during 2019-20. India's agricultural and allied imports during 2019-20 were USD 20.64 billion, and the corresponding figures for 2020-21 are USD 20.67 billion. Despite COVID-19, balance of trade in agriculture has improved by 42.16% from USD 14.51 billion to USD 20.58 billion.
For agriculture products (excluding marine and plantation products), the growth is 28.36% with exports of USD 29.81 billion in 2020-21 as compared to USD 23.23 billion in 2019-20.India has been able to take advantage of the increased demand for staples during the COVID-19 period.
Huge growth has been seen in export of cereals with export of non-basmati rice growing by 136.04% to USD 4794.54 million; wheat by 774.17% to USD 549.16 million; and other cereals (Millets, Maize and other coarse gains)by 238.28% to USD 694.14 million.
Other agricultural products, which registered significant increase in exports, as compared to 2019-20, were oil meals (USD 1575.34 million -growth of 90.28%), sugar (USD 2789.97 million - growth 41.88%), raw cotton (USD 1897.20 million - growth 79.43%), fresh vegetables (USD 721.47 million - growth 10.71%) and vegetable oils (USD 602.77 million- growth 254.39%) etc.
Largest markets for India's agriculture products are USA, China, Bangladesh, UAE, Vietnam, Saudi Arabia, Indonesia, Nepal, Iran and Malaysia. Exports to most of these destinations have registered growth, with highest growth being recorded for Indonesia (102.42%), Bangladesh (95.93%) and Nepal (50.49%).
Export of spices like ginger, pepper, cinnamon, cardamom, turmeric, saffron etc., which have known therapeutic qualities, has also grown substantially. During 2020-21, export of pepper increased by 28.72% to USD 1269.38 million; cinnamon by 64.47% to USD 11.25 million; nutmeg, mace and cardamom by 132.03% (USD 189.34 million vs USD 81.60 million); and ginger, saffron, turmeric, thyme, bay leaves etc. by 35.44% to USD 570.63 million. Export of spices touched highest ever level of around USD 4 billion during 2020-21.
The organic exports during 2020-21 were USD1040 million as against USD 689 million in 2019-20, registering a growth of 50.94%.Organic exports include oil cake/ meals, oil seeds, cereals and millets, spices and condiments, tea, medicinal plant products, dry fruits, sugar, pulses, coffee etc.
Exports have also taken place from several clusters for the first time. For instance, export of fresh vegetables and mangoes from Varanasi and black Rice from Chandauli has taken place for the first time, directly benefitting farmers of the area. Exports have also taken place from other clusters viz. oranges from Nagpur, banana from Theni and Ananthpur, mango from Lucknow etc. Despite the pandemic, export of fresh horticulture produces took place by multimodal mode and consignments were shipped by air and sea to Dubai, London and other destinations from these areas.Handholding by the Departmentfor market linkages, post-harvest value chain development and the institutional structure such as FPOs, enabled North East farmers to send their value-added products beyond the Indian borders.
Cereal exports have done well during 2020-21. We have been able to export to several countries for the first time. For example Rice has been exported to countries like Timor-Leste, Puerto Rico, Brazil, etc. for the first time. Similarly wheat has been exported to countries like Yemen, Indonesia, Bhutan, etc and other cereals have been exported to Sudan, Poland Bolivia, etc.
Measures taken during COVID-19 pandemic
Implementation of Agriculture Export Policy and Export Promotion Measures
The first ever Agriculture Export Policy (AEP) was introduced by the Government in December 2018.As a part of the process of implementation of AEP, eighteen States viz. Maharashtra, U.P., Kerala, Nagaland, Tamil Nadu, Assam, Punjab, Karnataka, Gujarat, Rajasthan, Madhya Pradesh, Andhra Pradesh, Telangana, Manipur, Sikkim, Nagaland, Mizoram and Uttarakhand and the 2 UTs viz Ladakh and Andaman & Nicobar Islands have finalized the State specific Action Plan. The State Level Monitoring committee has been formed in 25 States and 4 UTs. 28 States & 4 UTs have nominated respective Nodal agencies for implementation of AEP.
As part of the Agriculture Export Policy, 46 unique product-district clusters have been identified for export promotion.29 Cluster Level Committees have been formed in different clusters.Cluster activation for export:DoC intervened through APEDA for linking FPOs & exporters for activation of clusters. After the said linking, transportation/logistics issues were solved and exports took place from land locked clusters.
Following are some of the success stories:
These clusters have been activated by utilizing the existing resources, with little or no additional investments. Exports from these clusters are taking place on regular basis.
Country specific agri export strategy reports:An interaction was carried out with 60 Indian Missions and stakeholders to identify the products, their potential and way forward for preparing the country-wise agri-export strategy.Report on product-specific measures: A detailed analysis was carried out to address the requirements of SPS/TBT issues existing in trade, for boosting exports of India. The report titled 'Tariff Disadvantages of India's Agricultural Exports' is based on the potential export products identified for boosting exports under AEP.Virtual Buyer Seller Meets- Twenty four V-BSMs have been organized with UAE, Kuwait, Indonesia, Switzerland, Belgium, Iran, Canada (Organic products), UAE & USA (GI products), Germany, South Africa, Australia, Thailand, Oman, Bhutan, Azerbaijan, Qatar, Saudi Arabia, Nepal, Uzbekistan, Vietnam, Netherlands, Brunei and Cambodia (Animal products). E-catalogues were released while each BSM having details of participant exporters, importers, Trade associations.Virtual Trade Fair (VTF) -APEDA took an initiative to develop its own Virtual Trade Fair (VTF) application. The virtual platform will provide an opportunity for agri importers of several countries and our exporters to interact through participation. The first Virtual Trade Fair was organized for Cereals product sector during 10-12thMarch 2021. The VTF for Fresh fruits and vegetables was held from 27-29thMay2021.Agri Cells at different Embassies of India-APEDA is consulting 13 Agri Cells in our Missions in different countries seeking inputs on real-time basis to further strengthen the existing Market Intelligence cell. The consolidated reports received from Agri Cells are being referred to while preparing the strategy pertaining to the specific countries.Farmer Connect Portal: A Farmer Connect Portal has been set up on APEDA's website for providing a platform for FPOs/FPCs, cooperatives to interact with exporters. Around 2360 FPO/FPCs and 2324 exporters have been registered so far.
Focus on Middle East
For promoting agriculture to the Middle East countries, country-specific Agri Export strategy has been prepared in consultation with the Indian Missions in these countries. Virtual Buyer Seller meets were organised in the potential countries in association with Indian Missions of the respective countries for providing a virtual platform to the Indian exporters for interacting with potential importers. Such VBSMs were organised in seven countries of the Middle East viz. UAE, Oman, Bahrain, Kuwait, Qatar, Saudi Arabia and Iran. This has provided a virtual platform to the exporters and importers for interaction further for conducting business.
A virtual meeting on Strategy for increasing exports of Agri products in the Gulf region was organised with the Indian Embassies of GCC Countries (Oman, Saudi Arabia, UAE & Bahrain) on 20thMay 2020. The India Brand Equity Foundation is planning a marketing campaign for Indian agriculture products in the Middle East countries.
India's largest agriculture exports to GCC countries are rice, buffalo meat, spices, marine products, fresh fruits & vegetables and sugar. India's exports of non-basmati rice to GCC countries in 2020-21 increased by 26.01%. Spices export grew by 52.39% and sugar by 50.88%. In spite of export of livestock products and marine products being severely affected by the COVID-19 pandemic, overall agriculture exports to GCC countries grew by 7.15%.
The Department has been making efforts, in collaboration with the Department of Agriculture, Cooperation & Farmers Welfare, for gaining market access for Indian products in markets.India has recently gained market access for pomegranate in Australia; mango and Basmati rice in Argentina; carrot seeds in Iran; wheat flour, basmati rice, pomegranate arils, mango, banana and soyabean oilcake in Uzbekistan; tomato, okra and onion in Bhutan; and oranges in Serbia.
Focus on new products
Efforts are being made to expand India's export basket of agricultural products and promote export of products unique to India. Following are a few examples:
Ensuring adherence to EU norms for export of Basmati rice to EU
Pesticideresidue problems have affected Basmati rice exports to EU due to stringent norms imposed by EU for chemicals like Tricyclazole and Buprofezin, which are extensively used in rice cultivation in India.EIC testing has been made mandatory for Basmati exports to EU, which led to decrease in the number of alerts.As a result of constant follow-up by DoC, the Government of Punjab imposed a ban on sale of 9 chemicals, including tricyclazole and buprofezin, during the Kharif season 2020.
APEDA, in collaboration with the trade bodies, has taken measures to create awareness in the Basmati growing areas. Efforts are also being made to ensure that the process for fixing Import Tolerance Limits (ITLs) for Tricyclazole and Buprofezin by EU is not delayed.