- India needs to form a US Food and Drug Administration (FDA)-like agency to have an integrated approach to both agricultural production and trade, to double agri-exports to $60 billion by 2022 from $30 billion now, according to the draft agri-export policy released by the commerce ministry.
Draft agri-export policy:
- The commerce ministry has released the draft agri-export policy
- It proposes that India needs to form a US Food and Drug Administration (FDA)-like agency to have an integrated approach to both agricultural production and trade
- The draft policy also advocated promoting export-oriented clusters and agriculture export zones (AEZs) in partnership with private exporters who will have a natural incentive to promote such clusters
Agriculture status in India:
- India’s domestic agricultural policies are largely aimed at food security and price stabilization and often put export restrictions to control food inflation
- India’s agricultural exports basket is a diversified mix led by marine products, meat and rice, which together constitute around 52% of its total agricultural exports
- India’s share in global exports of agriculture products has increased from 1% a few years ago to 2.2 % in 2016
- The commerce ministry has provisionally identified 50 unique product-district clusters for export promotion
- It has also shortlisted 10 commodities as focus items for specific farm, infrastructure and market intervention
The need of the hour:
- The commerce ministry has also sought to provide policy assurance to producers that processed agricultural and organic products will not be put under export restrictions such as minimum export price, export duty even when the primary agricultural product or non-organic agricultural product is brought under some kind of export restrictions to stabilise domestic prices.