Agriculture Export Policy, 2018

On 7th December, 2018 Union Cabinet has approved the Agriculture Export Policy, 2018. A Monitoring centre under the Ministry of Commerce would be established to oversee the implementation of the policy. Ministry of Commerce would be the nodal ministry for the implementation of the policy

Need

• Government has committed to double the farmers income by 2022 and promoting agricultural exports will give an impetus for achieving the goal.
• Promoting agricultural export requires integrating Indian farmers and agricultural products with the global value chains. This requires a policy direction.
• Increasing agricultural exports would require greater thrust on value-added products, promotion, and branding of produce of India. The Agricultural export policy can give a direction for this.
• There is a need for synergy between Central and State governments, as Agriculture and allied activities are under state list.

Objectives

• To double agricultural exports from present ~US$ 30+ Billion to ~US$ 60+ Billion by 2022 and reach US$ 100 Billion in the next few years thereafter.
• To diversify the Indian export basket, destinations and boost high value and value added agricultural exports including focus on perishables.
• To promote novel, indigenous, organic, ethnic, traditional and non-traditional Agri products exports.
• To provide an institutional mechanism for pursuing market access, tackling barriers and deal with sanitary and phyto-sanitary issues haunting the agricultural exports.
• To strive to double India’s share in world agri exports by integrating with global value chain at the earliest.
• Enable farmers to get benefit of export opportunities in overseas market.

Components

• The government would invest Rs 1,400 crore to set up specialised clusters in different states for different produce to push exports.
• Dedicated clusters would be set up for mangoes, pomegranate, bananas, grapes, tea, coffee, turmeric, and marine products, and others.
• Providing for a policy approach towards sensitive farm goods such as onions and the policy would be reviewed from time to time.
• Setting up of ‘Brand India’ to promote exports.
• Establishing strong quality regime for exports.
• Strategic and operational elements to attract private investment into production and processing.
• Providing an institutional mechanism to pursue market access and tackle barriers.

The policy has been drafted after extensive consultations with states that have agreed to remove a lot of restrictions, including mandi taxes, and APMC (Agricultural Produce Market Committee)-related conditions.