India’s Agriculture Export Policy: Boosting Global Trade in Agricultural Products
Published on: October 30, 2023.
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In this editorial titled “How We Tame Food Inflation, and at Whose Cost,” published in The Indian Express on October 30, 2023, the article addresses the drawbacks of a restrictive agricultural policy and proposes solutions to establish a resilient and competitive agricultural export strategy.
To control food inflation, the government has recently imposed a Minimum Export Price (MEP) of $1,200 for basmati rice. However, this measure has led to a decrease in purchases of basmati rice by traders in the Punjab-Haryana region, resulting in lower prices for farmers compared to when exports were not limited.
It is crucial to have a stable and dynamic agricultural export policy that is responsive and adaptable to ensure India’s sustained growth in the global agricultural trade market. Such a policy should prioritize the long-term sustainability of agriculture, environmental responsibility, and the welfare of farmers, while also promoting India’s role as a significant player in the world agricultural trade.
Challenges faced by India in promoting agricultural exports:
1. Inadequate infrastructure: Insufficient transportation and storage facilities hinder the smooth movement of agricultural produce from farms to markets.
2. Limited market access: Farmers often face difficulties in accessing distant markets due to inadequate connectivity and lack of information about market demands.
3. Quality control and standardization: Maintaining consistent quality standards for agricultural products is essential to compete in the international market.
4. Inefficient supply chain: Lengthy and inefficient supply chains lead to post-harvest losses and increased costs.
5. Trade barriers and regulations: Navigating complex trade barriers and regulations in different countries can be a challenge for exporters.
Measures to enhance the competitiveness and sustainability of India’s agricultural export sector:
1. Investment in infrastructure: Developing robust transportation systems, cold storage facilities, and market linkages can help improve the efficiency of the supply chain.
2. Market intelligence: Providing farmers with timely and accurate information about market trends, demands, and prices can help them make informed decisions.
3. Quality certification and standardization: Implementing strict quality control measures and certification systems can enhance the credibility and competitiveness of Indian agricultural exports.
4. Streamlining trade procedures: Simplifying trade procedures, reducing bureaucratic hurdles, and harmonizing regulations can facilitate smoother exports.
5. Promoting innovation and research: Encouraging research and development in agricultural practices, technology, and value-added products can improve productivity and competitiveness.
Overall, a comprehensive and inclusive approach is required to overcome the challenges faced by India in promoting agricultural exports. By addressing the shortcomings in infrastructure, market access, quality control, supply chains, and trade regulations, India can strengthen its position as a leading player in the global agricultural trade market.
Sources: [Source](https://www.drishtiias.com)
