Doubling Farmer’s Income – India’s Agricultural Exports Climb to Record High.

India is the world’s second-most populous country with a population of 1.27 billion and is third-largest economy after the US and China. India is a land of villages as more than half of the nation’s population lives in rural areas. This population earns their living majorly through agriculture. Agriculture is an integral part of our country and gives us an identity in the global market. India is one of the major exporters of agricultural products in the world. India’s agrarian culture and varied regional climate have significantly contributed to the global market. That said, in the past decade, India has emerged as one of the major agricultural exporters with exports climbing to US$ 38.49 billion in the financial year 2019. That makes India the sixth-largest exporter of agricultural products in the world surpassing Australia exporting items like excellent quality Indian curries, mangoes, snacks and, spices across the globe. India exported 7% more agricultural and processed food products in the just-concluded fiscal year, driven by double-digit increases in dairy products and pulses, although there was muted growth in wheat and non-Basmati rice shipped out of the country according to data from the Agricultural and Processed Food Products Export Development Authority (APEDA). Export Highlights:

• India stands first in the production of fruits such as banana (30.00 million tons), papaya (5.83 million tons), and mango (22.35 million tons) in the year 2018-19.
• During 2017-18, Guavas production amounted to 4.054 million tons.
• India is the largest milk producer in the world (176.3 million tons)
• India has the largest buffalo population (108.7 million)
• India is the largest pulses producer in the world (24.51 million tons)
• Among vegetables, India ranks second in the world (182.034 million tons), and first in the production of Okra (6.073 million tons)

Recent Developments: Intending to double farmer’s income by the year 2022, Ministry of Commerce & Industry has introduced an “Agriculture Export Policy 2018.” It targets to double the value of exports to $60 billion (about Rs 4.3 lakh crore) in the period. That, however, can be a difficult task, given the depressed international market for food grain, sugar, cooking oil as well as dairy and meat products. There will also be a monitoring framework set-up by the union cabinet. The Ministry of Commerce will act as the nodal department, other departments, agencies as well as state governments will be represented there. The Objective of the new Agriculture Export Policy 2018:

• To double agricultural exports to US$ 60+ billion by 2022 and reach US$ 100 Billion in the next few years thereafter, with a stable trade policy regime.
• To diversify our export basket, destinations and boost high value- and value-added agricultural exports including a 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 Phytosanitary issues.
• To strive to double India’s share in world Agri exports by integrating with the global value chain at the earliest.
• Enable farmers to get the benefit of export opportunities in the overseas market.

Despite the rise in exports of agricultural products, there are plenty from low farm productivity to poor infrastructure to global price volatility to market access. The vision of the government to double farmer’s income by 2022 would require a series of interventions to improve production and productivity, better price realization for farm produce, along with economizing the cost of production. There has been a long-felt need for a dedicated agricultural export policy in India. As the Director of Indian Agro Exports one of the most reputable Agro Exporters from Southern India, I strongly believe that the Agriculture Export Policy 2018 will help the nation to achieve the numbers and will increase farmer’s income. Improvements in the sector of agriculture with remarkable steps such as Contract Farming (The Model Contract Farming Act, 2018) will help Indian farmers to earn more as it holds the potential to help upgrade small and marginal farmers and integrate them into the agriculture value chain. The Policy aims at addressing a whole range of issues which could potentially propel India into the top bracket of agricultural exports. It has often been recognized that integration in the global value chain is one of the most certain methods of adopting the best agricultural practices along with attaining productivity gains and cost competitiveness. The objective of doubling the farmer’s income will invariably require high levels of income as well as improving in the food value chain. [/vc_column_text][/vc_column][/vc_row]