Major Problems of Agricultural Export in India
Major Problems of Agricultural Export in India
India is one of the leading producers of certain agricultural commodities. For instance, India is the largest producer of milk, cashew nuts, coconuts, tea, the second largest producer of wheat, vegetables, sugar and fish and the third largest producer of tobacco and rice. It is understood that the developed countries which are interested in protecting their agriculture with various subsidies and trade barriers and they are anxious to push their farm exports. The developed countries provide more than $300 billion of subsidies every year to their agriculture. Under existing of WTO rules the maximum subsidies the E.U and the U.S can give as Amber box subsidies is $60 billion and $20 billion respectively. On the other hand, the developing countries are relatively minor players in this tussle, are concern about protecting their markets and their small farmers besides demanding developed countries to reduce subsidies. India is also following the defensive approach. It causes great concern whether India could retain its competitiveness in the export of the commodities so as to expand export potential through the inclusion of more new value added commodities by devising appropriate export strategies. What are the potentials that exist in agricultural exports and what are the constraints that hinder the augmentation of agricultural exports? What kind of export strategies needed to enhance the agricultural export? These are the issues to be addressed and solutions for the same have to be arrived at.
Constraints In Export
1) Lack of infrastructure and systems to cater to the export market particularly availability of air cargo at affordable cost and ports roads, cold chain etc,
2) Information flow along the value chain is very weak
3) Additional restrictions or raise quality issues by developed countries
4) Fears about large-scale imports of some agricultural commodities-edible oils.
5) Poor quality, improper post harvest
India is one of the leading producers of certain agricultural commodities. For instance, India is the largest producer of milk, cashew nuts, coconuts, tea, the second largest producer of wheat, vegetables, sugar and fish and the third largest producer of tobacco and rice. It is understood that the developed countries which are interested in protecting their agriculture with various subsidies and trade barriers and they are anxious to push their farm exports. The developed countries provide more than $300 billion of subsidies every year to their agriculture. Under existing of WTO rules the maximum subsidies the E.U and the U.S can give as Amber box subsidies is $60 billion and $20 billion respectively. On the other hand, the developing countries are relatively minor players in this tussle, are concern about protecting their markets and their small farmers besides demanding developed countries to reduce subsidies. India is also following the defensive approach. It causes great concern whether India could retain its competitiveness in the export of the commodities so as to expand export potential through the inclusion of more new value added commodities by devising appropriate export strategies. What are the potentials that exist in agricultural exports and what are the constraints that hinder the augmentation of agricultural exports? What kind of export strategies needed to enhance the agricultural export? These are the issues to be addressed and solutions for the same have to be arrived at.
Constraints In Export
1) Lack of infrastructure and systems to cater to the export market particularly availability of air cargo at affordable cost and ports roads, cold chain etc,
2) Information flow along the value chain is very weak
3) Additional restrictions or raise quality issues by developed countries
4) Fears about large-scale imports of some agricultural commodities-edible oils.
5) Poor quality, improper post harvest