NEW DELHI: Exports of major farm products registered a healthy growth during the past fiscal despite the economic slowdown pulling down overall export performance.
The current fiscal, too, is expected to be good for agricultural exports despite the deficient monsoon, according to Apeda, the government’s agriculture export promotion body. Basmati rice and processed food, the two items forming the majority of the country’s agri export basket, will not be majorly impacted by the missing rains, it said.
According to Apeda chairman Asit Tripathy, exports monitored by the body (accounting for about 50% of total agri exports from the country) registered a 25% growth in 2008-09 to Rs 40,000 crore against an overall 3% growth in total goods exports during the period.
The major reason behind the healthy growth is the huge unexploited export potential that the country holds in the area. Despite being the third-largest producer of food in the world, India ranks 20th in food exports.
“India has to meet a number of challenges in terms of increasing productivity, economies of scale and meeting global standards on quality & food safety,” Mr Tripaty said, adding that Apeda expects exports to double to $20 billion in the next five years from the existing $10 billion.
Mr Tripathy pointed out that the irregularities in monsoon this year was unlikely to affect Basmati exports as has been indicated by the space consultants engaged by the department to conduct satellite surveys.
“The trip and field surveys conducted by the consultants show that the delay in rains had actually promoted Basmati cultivation which is sown later than non-Basmati rice and is harvested early,” he said. Basmati exports accounted for Rs 11,162 crore in 2008-09 followed by processed food exports worth Rs 9,919 crore.
Getting raw fruits and vegetables for processed food exports was also not going to be a difficult issue as India has a problem of plenty in the area, Mr Tripathy added.
Exports of both fresh fruits and vegetables more than doubled during the previous fiscal driven mainly by high demand from Pakistan, Bangladesh and South-East Asia. Though overall rice exports dropped by 5.3% due to the ban placed on export of non-Basmati rice, Basmati rice exports doubled. Other cereals grew by 38.8% primarily due to higher demand for maize. Floriculture registered a marginal growth of 0.62%.
Source : The Economic Times