AGRO EXPORT POTENTIAL

Agro Export Potential

Presented By- Harish Deore Student- PGDM (ABM)

MIMA ,Pune.Contact No-7588001528

POTENTIALS AND EMERGING FOCUS AREA FOR AGRICULTURAL EXPORTS

EXPORTS SCENARIO OF INDIA Current Exports: -US$ 178.7 Billion Target for current year US$ 200

Billion Share in World Exports: 1.5% Ranking in World Exports: 26 Exports as % of GDP : 20% Employment in exports :175 Million Exports Target for 2020 : 5% of

World Trade

COMPOSITION OF TRADECommodity %Share AGRI & ALLIED PRDTS 7.07% MARINE PRODUCTS 1.17% ORES & MINERALS 4.88% LEATHER & MNFRS 1.88% GEMS & JEWELLERY 16.23% CHEMICALS & PRDTS 13. 64% ENGINEERING GOODS 18.31% ELECTRONICS 3.16% TEXTILES,CARPTES AND HANDICRAFT 11.23% COTTON RAW INCL. WASTE 1.15% PETROLEUM PRODUCTS 15.75% OTHERS 4.80%

DIRECTION OF TRADE1)  Europe 21.56% EU Countries (27) 20.17%Other WE Countries 1.33%East Europe 0.07%2)  Africa 5.77%Southern Africa 1.85%West Africa 1.76%Central Africa 0.20%East Africa 1.97%3)  America 15.04%North America 11.56%Latin America 3 .48%4)  Asia & ASEAN 53.94%East Asia 0.95%ASEAN 10.12%WANA 22.02%NE Asia 16.11%South Asia 4.73%

DIRECTION OF TRADE(CONTD.)

5)  CIS & Baltics 0.94%  CARs Countries 0.15%Other CIS Countries 0.79%

6) Other Countries 2.75%

CURRENT SCENARIO OF AGRICULTURE IN INDIA

Indian Agriculture has made rapid strides since

independence1) From food shortages and import to self-sufficiency and

exports.

2) From subsistence farming to intensive and technology led cultivation.

3) Today , India is the front ranking producer of many crops in the world.

4) Ushered in through the green, white, blue and yellow revolutions

INDIA’S POSITION IN WORLD AGRICULTURE

Parameter Rank in World.

Total Area Seventh Irrigated Area First Population Second Economically Active population Second Total Cereals Third Wheat Second Rice Second Coarse grains Fourth Total Pulses First Oil Seeds Second Fruits and Vegetables Second Implements (Tractors) Third Milk First Live Stock (castles, Buffaloes) First

INDIAN AGRICULTURE- SOME FACTSTotal Geographical Area - 328 million hectares

Net Area sown - 142 million hectares Gross Cropped Area – 190.8 million hectares Net Irrigated Area - 56 million hectares Drought-prone Area - 190 million hectares Potential for Biological Production - 265 million hectares Area threatened by land degradation 50% of TGA2. Major Crop Production (1999-2000)

Rice 89.5 million tonnes Wheat 75.6 million tonnes Coarse Cereals 30.5 million tonnes Pulses 13.4 million tonnes Oilseeds 20.9 million tonnes Sugarcane 29.9 million tonnes

MILE STONES IN AGRICULTURAL DEVELOPMENT

Green Revolution (1968) Ever-Green Revolution (1996) Blue Revolution (water, fish) White Revolution (Milk) Yellow Revolution (flower, edible) Bio-Technology Revolution ICT Revolution

DEVELOPMENT OF INDIAN AGRICULTURE : BASIC ISSUES

Revitalization of Cooperative Institutions Improving Rural Credits Research, Education & Extension Human Resources Development Trade & Export Promotion Land Reforms Enabling Environment for higher Agricultural Growth

The thrust areas: Diversification of Agriculture Inter-cropping Micro Management Water Management Organic Farming Agri-Clinics and Agri-business Centres Bio-Technology

INDIAN AGRICULTURE- SOME FACTS3. Contributes to 24% of GDP4. Provides food to 1Billion people5. Sustains 65% of the population : helps alleviate

poverty6. Produces 51 major Crops7. Provides Raw Material to Industries8. Contributes to 1/6th of the export earnings9. One of the 12 Bio-diversity centers in the world with

over 46,000 species of plants and 86,000 species of animals recorded

MAJOR ACHIEVEMENTS India is

1. Largest producer in the world of pulses , tea , and milk

2. Second Largest producer of fruits, vegetables, wheat , rice, groundnut and sugarcane.

3. Indian Agriculture ScenarioSTRENGTHS WEAKNESS

Rich Bio-diversity Fragmentation of land Arable land Low Technology Inputs Climate Unsustainable Water

Mangt Strong and well dispersed Poor Infrastructure

research and extension system Low value addition

CONTINUED… OPPORTUNITIES THREATS

Bridgeable yield crops Unsustainable Resource Use

Exports Unsustainable Regional

Development

Agro-based Industry Imports

Horticulture

Untapped potential in the N.E

Current Concerns Pressure of the Population on Land Skewed distribution of operational holdings Land Degradation Water Balance Low level of mechanization Low Fertilizer Consumption

CONTINUED… India’s competitive advantage

- Diverse agro climatic conditions.

- Sufficiency of Inputs.

- Reasonable labour costs. Agriculture exports from India account for less than 1%

world trade in Agriculture commodities.

- Target is to raise India’s share to 2% . Thrust Areas Improvement and maintenance of quality. Consonance with International Standards. Strengthening of Infrastructure. Identification of niche products and markets.

TECHNOLOGIES FOR SUSTAINABLE AGRICULTURAL DEVELOPMENT

Biotechnology Pre & post harvesting technology Energy saving technology Environment protection technology Information and Communication

technology GIS & RS technology Internet/Intranet Technology

INDIA’S AGRICULTURAL EXPORT POTENTIALS Marine Products Rice Wheat Condiments and Spuces Cashew Tea Coffee Castor Jute Fruits and Vegetables- Onions, Mango, Grapes,

Banana, Tomato , Potato , Lichchi ,etc.

FOOD AND AGRICULTURE- SIGNIFICANT FEATURES 1. High volatility in commodity prices2. Ban on exports of certain commodities3. Global economic growth, increasing population in

developing countries to drive demand for commodities

4.Food and food security to remain a challenge for developing countries for generations to come5.Share of natural resources in world trade has risen

sharply in recent years6. Natural resources endowments- blessing or curse? Blessing- comparative advantage and critical to

economic growth, and curse- trapping them in a state of under-

development

CONTINUED…7. In the 31 block of OECD countries, most distortive

form of support still continues8. 9 years since Doha development round has failed to

make a dent on this- subsidies have only gone up9. The fall in (farm goods) prices at the end of 2008

has led to concerns about the impact of the future market volatility on the ability of producers to expand output, on an environmentally sustainable basis, in response to growing demand ( World Trade Report-2010)

10. In India, the public investment in farm and farm research is abysmally low(0.6% of GDP in 2008-09 vs. 1.4% in 80-81) leading to stagnant growth rate ( 2-3 %)

11. 20% of GDP supports more than half the population

CONTINUED…12.India grows 12 and 14% of world’s fruits and

vegetables respectively whereas the exports are only 1.5% of world’s exports (mainly to west asia and east europe)

13.Wastage around 40% due to lack of post- harvest management techniques

14.The investment in agriculture has stagnated at around 0.6 % of GDP since 1999, whereas, the food subsidy has rocketed from around 9200 crores to around 47000 crores(0.76% of GDP).

15.Export strategy for Mango (India produces 54% of world’s production), Banana including its value added products (India is the largest producer) and Litchi (produced only in Indian sub-continent) required to create a win-win situation.

16.Floriculture- out of US$ 17 billion of world export, India’s share is $ 80 million (despite one of the highest acreage)

CONTINUED…17. All this calls for targeted interventions18. Investments for improvements in pre and post

harvest technology and management systems, strengthening the cold chain system, maintaining the quality standards and farmers awareness, R&D, strengthening the role of Agri Export Zones (AEZ)

19.Internal demand has failed to accelerate agriculture income growth

20.FTAs and RTAs for more and diversified market access

Thank you,