'Govt, Pvt Sector Must Focus On AEZs To Boost Agri Exports'.

In a bid to increase India's agri exports, the government and private sector should focus on improving agriculture export zones (AEZs), industry body Assocham today said.

"AEZs deserve a boost by policymakers...India ranks dismally low in global trade despite being a major producer of agriculture products," the chamber said.

An AEZ is a specific geographic region demarcated for setting up agri based processing industries, mainly for exports.

With food and agriculture exports totalling USD 15.6 billion, India's share is a meager 1.6% of the total global trade, it said.

Agriculture and related activities account for employment to 60% of the population in the country, 19% of the GDP and only 9% of total exports, it said.

"The focus should be on commodities where India has marketable surplus and competitive strength in global markets," the chamber said.

India is the largest producer of fresh fruits and vegetables and ranks second in production of cashew, cabbage, cotton seed, garlic, cardamom, onions, sugarcane, tomatoes, coconut, ground nut, tea, green peas, cauliflower, potatoes and inland fish.

Total investments in AEZs across 20 states so far have been worth Rs 1,098 crore with exports valued at Rs 10,690 crore.

The AEZ concept has the potential to improve agriculture output and quality besides reducing post-harvest losses and upgradation of technology, farmers' skills and income, it said.

Source : moneycontrol.com