performance of agriculturalresearch study entitled, “performance of agricultural exports from...

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Indo-Am. J. Agric. & Vet. Sci., 2014 D P Singh, 2014

PERFORMANCE OF AGRICULTURALEXPORT FROM INDIA

D P Singh1*

Agricultural exports witnessed an increase of Rs. 60683.96 cr between 2000-01 and2009-10. The policies of trade liberalization show a clear positive impact on exports ofagricultural commodities from India. The share of total agricultural exports in totalnational exports was 14.23 % in 2000-01. After that it declined continuously andaccounted for 10.57% in 2009-10. The share of food grain groups in agricultural exportsof India has shown an increasing trend with almost 4 times in 2000 to 2010. The share offood grains was 13.69% in 2000-01. It continuously fluctuates and reached up to 16.38%in 2009-10. Rice (basmati and non basmati) was major contributor, nearly 65%, in foodgrains group. Share of oil seeds exports in total agricultural exports was 13.64% with Rs.3909.16 cr in 2000-01. It continuously fluctuates and reached up to 14.50% with Rs.12955.32 cr in 2009-10. The share of horticultural commodities in agricultural exportswas 6.31% with Rs.1808.90 cr value in 2000-01. It increased and reached 8.46% withRs. 7561.96 cr in 2009-10. The share of marine product was 22.22% with Rs. 6367.29 crvalue in 2000-01. It continuously decreased and reached 11.08% in 2009-10, but invalue terms it increase from Rs. 6367.29 cr to 9899.98 cr. The share of spices in agriculturalexports was 5.65% in 2000-01. It showed mixed trend and reached 6.89% in 2009-10.The share of beverages and tobacco was 13.40% in 2000-01. It decreased and reached10.43% in 2009-10. The share of animal products was 5.87% in 2000-01. It showedmixed trend and reached 8.06% in 2009-10. The share of other agricultural commoditiesgroup was 19.22% in 2000-01. It showed mixed trend. It increased and reached up to24.30% in 2009-10. This study provides many suggestions to the action at policy making,appropriate export promotion strategies and evolve ways and means of systematic growthof the agricultural commodities in international markets.

Keywords: Agricultural exports, Policy making, International markets

*Corresponding Author: D P Singh � [email protected]

INTRODUCTIONIndia’s total agricultural product exports have apotentially large impact on world market. The

1 Department of Agricultural Economics, College of Agriculture, SKRAU, Bikaner.

Indo-Am. J. Agric. & Vet. Sci., 2014 ISSN 2321–9602 www.iajavs.com

Vol. 2, No. 1, March 2014

© 2014 Meghana Publications. All Rights Reserved

Research Paper

Exports from India in value terms is about Rs.846 thousand cr. Agricultural exports accountfor about 10.57% in total national exports and in

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2009-2010, agricultural products valued at Rs.89341.33 cr were exported from the country. Thisindicates importance of agriculture in exportsector.

The agricultural commodities which havegreat role in India’s agricultural export arecereals (mostly Basmati and non-Basmati rice),coffee, spices, cashew, poultry and dairyproducts, and marine products are the prominentproducts of the country’s total agricultural export.Meat and meat preparations, fruits andvegetables, floriculture and processed fruits andvegetables have recently shown strong growthin export.

Indian agriculture exports have improved overthe years in value terms but their share in totalexports of India is declining continuously. Themain reason behind this is better and fasterdevelopment of secondary and tertiary sectorsof the Indian economy as the country approacheson the path of development, ever increasingpopulation of the country and stagnation inproductivities of our major agriculture crops.Indian agriculture exports are mainly residualexports which mean that whatever is left afterfulfilling the consumption requirement isexported. Such type of policy leads to large yearto year instability in agriculture exports andtheir slower growth over the years.

The Government of India, Ministry ofcommerce and Industry announces ExportImport (EXIM) Policy after every five years. EXIMpolicy, in general, aims at developing exportpotential, improving export potential, improvingexport performance, encouraging foreign tradeand creating favorable balance of paymentsposition. The current EXIM policy covers theperiod 2009-2014. The EXIM policy is updatedevery five year on March 31 and modifications,improvements and new schemes becomeeffective from April 1 of every year.

The policy aims are promoting exports andaugmenting foreign exchange earnings and

regulating exports wherever it is necessary forthe purposes of either avoiding competitionamong the Indian exporters or ensuringdomestic availability of essential item of massconsumption at reasonable prices.

Keeping in view the above considerationresearch study entitled, “Performance ofagricultural exports from India” was plannedwith specific objectives as:

1. To analyze the growth rate and the changesin the structure of export of agriculturalcommodities.

2. To analyze the instability in agriculturalexport.

3. To suggest suitable measures for improvingexport of agricultural export.

METHODOLOGY

Collection and Analysis of DataThe secondary data regarding quantity, valueand value of exported agricultural productsovertime were collected from various publicationsand websites of Ministry of Agriculture, Govt. ofIndia, Director General of CommercialIntelligence and Statistics, Ministry ofCommerce, Kolkata for the period of 10 years(according to availability of data).

The collected data were analyzed by usingvarious statistical tools such as average,percentage etc., to achieve objectives of thestudy.

Analysis of Growth Rate and StructuralChange in Agricultural ExportThe growth rate of agricultural exports and ofunit prices was arrived at using the exponentialgrowth function of the form

Y = abt Ut ...(1)where,

Y = Dependent variable for which growth rateis to be estimated / particular commoditygroup

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a = Intercept

b = Regression coefficient and

t = Time variable

ut = Error term

The equation was estimated aftertransforming (1) as follows

log y= log a + t log b + log ut ...(2)

Then, the percent compound growth rate (g)was calculated using the relationship

g = (antilog of b – 1) x 100 ...(3)

For structural change in agricultural export,the Commodities were classified into differentstructural groups on the basis of DirectorGeneral of Commercial Intelligence andStatistics, Ministry of Commerce, and Kolkatamethodology. In all eight commodity groups wereformed. The commodities included in eachstructural group were as follows:

1. Foodgrain : Rice, Wheat, Pulses etc.

2. Oil seeds : Groundnut, castor oil,oil meal, etc.

3. Horticultural : Fruits and Vegetablescommodities Seed, Fresh Fruits,

Fresh Vegetables, Flori-culture Products, etc.

4. Marine products : Marine products

5. Spices : Total Spices

6. Beverages and : Tea, Coffee, TobaccoTobacco

7. Animal products : Poultry products, Dairyproducts, Meat and itspreparation.

8. Others : Sugar, molasses, shellacand miscellaneousprocessed items, etc.

Agricultural commodity structures wereanalyzed by estimating percentage contributionof these structural groups as well as importantcommodities in total earning of agricultural

exports overtime.

The commodity share in agricultural exportof the economy towards major agriculturalcommodities exports were calculated as;

Structure/commodity share

in export = 100×TE

CE

where,

CE = Commodity export during the specific periodin value terms

TE = Total export during the specific period invalue terms

INSTABILITY ANALYSISTo study the variability in agricultural export,coefficient of variation was used as a measureof variability.

Coefficient of variation (cv) = 100×AM

SD

where,

SD = Standard Deviation

( )n

xxSD

2−Σ=

AM = Arithmetic Mean

( )n

xxxxAM n++++Σ= ...321

RESULTS AND DISCUSSION

Growth Rate Analysis and Changes inthe Structure of Export of AgriculturalCommodities

Growth Rate Analysis

The total agricultural exports share in total

national exports of India was 10.57% in 2009-10. A positive growth rate of basmati rice and

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other cereals represents growing exports of

foodgrains. In absolute terms, the quantity of

basmati rice and other cereals recorded a rise

from 849.02 and 45.09 thousand tons in 2000-01 to 2016.87 and 2892.41 thousand tons in2009-10, respectively. Quantity wise India’s

foodgrain exports grew at compound growth rateof 10.98% for rice basmati and 47% for othercereals, whereas pulses, rice other than basmatiand wheat showed negative growth rate of –4.10%, –9.20% and –71.80%, respectively. Invalue terms, it grew at a compound growth rate

Table 1: Growth Rate of Different Agricultural Commodities (2000-01 to 2009-2010)

Group Commodities CGR

Quantity F value Value F value

Food Grain Pulses -4.10 0.72 3.30 0.52

Rice Basmati 10.98 32.41* 20.57 29.53

Rice other than Basmati -9.20 0.59 0.02 0.32

Wheat -71.80 23.28* -67.81 20.05*

Other cereals 47.00 50.83* 49.60 73.60*

Oil seeds Groundnut 11.0 9.95** 23.10 31.22*

Castor oil 7.33 9.14** 13.64 20.34*

Sesamum oil 3.90 0.23 15.00 37.29*

Niger seed -11.30 5.5** -4.20 1.00

Oil meal 13.10 16.44* 20.10 53.77

Horticultural Fruits/vegetables seeds 3.30 1.66 10.20 17.50*

Commodity Fresh fruits N A N A 21.00 288.88*

Fresh vegetables N A N A 19.80 140.12*

Processed vegetables N A N A 16.10 127.48*

Processed Fruit Juice N A N A 10.25 9.33**

Floricultural Products N A N A 13.30 13.12*

Marine products Marine Products 4.66 2.34 5.82 10.40**

Spices Total Spices 14.32 152.16* 19.35 51.39*

Beverages & Tea 1.40 3.94 5.69 16.93*

Tobacco Coffee 0.79 0.75 9.20 26.97*

Tobacco unmanufactured 10.70 186.87* 18.0 59.66*

Tobacco manufactured N A N A 10.88 17.82*

Animal Products Dairy Product N A N A 23.60 24.12*

Poultry Product N A N A 14.20 51.51*

Meat and its Preparation N A N A 18.80 126.69*

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Table 1 (Cont.)


Quantity F value Value F value

Other Sugar -3.11 0.03 2.52 0.03

Commodities Molasses -7.40 0.22 4.30 0.12

Shellac -0.70 0.05 2.40 0.30

Cashew nut shell liquid 21.92 36.87* 23.10 61.27*

Cashew 2.58 4.76 4.50 11.42*

Cotton raw including waste 57.30 26.20* 58.60 25.41*

Jute N A N A 6.40 4.13

Guar Gum 9.30 39.28* 15.50 5.55

Paper/wood products N A N A 17.20 152.45*

Miscellaneous Processed Products N A N A 13.60 63.62*

of 3.30% for pulses, 20.57% for rice basmati,0.02% for rice other than basmati and 49.60%for other cereals and wheat showed a negativegrowth rate of –67.81% (Table 1).

During 2000-01, the oil seed exports were3090.01 thousand tons valued at 3909.16 croresand during 2009-10, it had increased to 5631.10thousand tons valued at 12955.32 crores. Inabsolute terms the groundnut, castor oil,sesamum oil, and oil meal exports registered acompound growth rate of 11.80%, 7.33%, 3.90%,and 13.10%, respectively, whereas niger seedexport represent negative growth rate of –11.30%. In value terms groundnut, castor oil,sesamum oil, and oil meal exports registered acompound growth rate of 23.10%, 13.64%, 15%,and 20.10%, respectively, whereas niger seedexport represent negative growth rate –4.20%,respectively. Thus, the Indian oil seed industryfaced a changing scenario by exporting Rs.3909.16 cr in 2000-01 and approaching up to Rs.12955.32 cr in 2009-10.

A positive growth rate of horticulturalcommodities represents a growing exportmarket as given in Table 1 in quantity terms

fruit/vegetables seed export is positive growthrate of 3.30%. Horticultural commodities export,in value terms grew at compound growth rate of10.25% (processed fruit juice), 10.20% (fruits /vegetables seed), 21% (fresh fruits), 19.80%(fresh vegetables), 16.10% (processedvegetables), and 13.30% in (floriculturalproducts) during last decade.

In case of marine products exports, Indianmarine product exports quantity grew atcompound growth rate of 4.66%. In export valueit grew at compound growth rate of 5.82% in20001-2010. It represents the positive growingexports markets of marine product.

India spices export grew at compound growthrate 14.32% in quantity terms and 19.35% invalue terms. It represents the growing exportsmarket of Indian spices. In quantum Indianspices exports recorded a rise from 244.68thousand tons value at Rs. 1617.74 cr during2000-01 and increased to 663.21 thousand tonsvalue at Rs. 6157.23 cr in 2009-10.

Tea, coffee and tobacco are traditional exportitems of India. In case of beverages and tobaccoexports tea, coffee and tobacco unmanufactured

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represent a positive compound growth rate of1.40%, 0.79% and 10.70% in quantity termsrespectively. Whereas in value terms tea, coffee,tobacco unmanufactured and tobaccomanufactured registered a positive compoundgrowth rate 5.69%, 9.20%, 18.80% and 10.88%,respectively.

Animal products exports share in totalagricultural exports was 8.06% in 2009-10 anda positive growth rate of dairy product, poultryproduct and meat and its preparations were23.60%, 14.20% and 18.80% in export value,respectively. It represents a growing exportmarket of animal products.

In case of other commodities exports, cashewnut shell liquid, cashew, guar gum and cottonraw grew at compound growth rate of 21.925%,2.58%, 9.30% and 57.30%, respectively inquantity terms whereas sugar, molasses andshellac exports represent negative growth rate–3.11%, –7.40% and –0.70% in quantity terms.In value terms sugar exports grew at 2.52%,molasses 4.30%, shellac 2.40%, cashew nut shellliquid 23.10%, cashew 4.50%, cotton raw 58.60%,jute 6.40%, paper/wood products 17.20%, guargum 15.50% and miscellaneous processedproduct 13.60%. During a positive growth rate ofthese commodities export represents a growingexports market of India.

Changes in the Structure of Exportsof Agricultural CommoditiesChanges in the structure of exports ofagricultural commodities, all the exportableagricultural commodities were classified ineight groups, viz., Foodgrain group, Oilseed group,Horticultural group, Beverages and tobaccogroup, Marine products group, Spices group,Animal products group and Other commoditiesgroup. The commodities included in each ofstructural group were as follows: The first groupwas foodgrains group in which cereals like Ricebasmati, Rice other than basmati, Wheat andother cereals and total pulses were included.

Second structural group was oilseed group inwhich groundnut, castor oil, sesamum, nigerseed, and oil meal were included. Thehorticultural commodities group included fruitsand vegetables seeds, fresh fruits, freshvegetables, processed fruit juice and floriculturalproducts. The fourth structural group was marineproducts in which marine products were includedand next was spices group in which total spicesexport from India were included. The beveragesand tobacco group included tea, coffee, tobaccomanufactured and tobacco unmanufactured. Inthe animal products group dairy products, poultryproducts and meat and its preparations wereincluded. Last group was other commodities groupin which remaining commodities like sugar,molasses, shellac, cashew nut shell liquid,cashew, cotton include waste, jute, paper/ woodproducts guar gum and miscellaneous processedproducts included, whose exports were irregularand in small quantities.

In India like other developing countries,agriculture continues to be an important sourceof foreign exchange and revenue and for tappingthe full potential of agricultural exports, it isessential that research and development shouldtake place in such a way that it can have greaterbearing on the production of a particularagricultural produce for the purpose of export onthe one hand, and financial and fiscal incentivesmust be provided for exporting a particularproduce after addressing all pre-harvesting andpost harvesting concerns on the other.

Table 2 shows the relative shares of differentagricultural groups in the total agriculturalexport from India. Agricultural export witnessedan increase of Rs. 60683.96 cr between 2000-01and 2009-10. India’s agricultural exports havecontinuously improved in over the period. Theshare of total agricultural exports in nationalexport was 14.23% in 2000-01. After that, itcontinuously decline from 14.23% to 10.78% in2005-06 and improve slightly to 12.05% in 2007-08. Later on it declined from 12.05% to 10.57%during 2009-10. The major factor behind thedecline in total agricultural export was decrease

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Table 2: Share of Different Agricultural Groups in the Agricultural Exports of India

Value % Value % Value % Value % Value % Value % Value % Value % Value %

2000-01 3923.11 13.69 3909.16 13.64 1808.9 6.31 6367.29 22.22 1617.74 5.65 3840.78 13.4 1682.71 5.87 5507.56 19.22 28657.37 100

2001-02 4989.4 16.78 3749.89 12.61 1893.31 6.37 5898.34 19.84 1496.97 5.04 3621.85 12.18 1549.53 5.21 6529.32 21.96 29728.61 100

2002-03 8027.19 23.16 2726.34 7.87 2199.69 6.35 6928.0 19.99 1655.49 4.78 3668.94 10.59 1735.71 5.01 7712.53 22.26 34653.94 100

2003-04 7285.29 19.55 4839.37 12.99 2676.85 7.18 6105.63 16.38 1544.18 4.14 381.74 10.25 2129.56 5.71 8014.86 21.51 37266.52 100

2004-05 9625.13 23.14 5576.29 13.4 2745.3 6.6 6469.22 15.55 1883.18 4.53 4163.99 10.01 2646.02 6.36 8492.99 20.41 41602.65 100

2005-06 8347.83 16.96 7135.29 14.5 3529.3 7.17 7035.91 14.3 2115.98 4.3 4650.08 9.45 3858.15 7.84 12589.42 25.58 49216.96 100

2006-07 8443.85 13.53 8399.34 13.46 5096.43 8.17 8001.04 12.82 3157.90 5.06 5623.68 9.01 4124.94 6.61 19364.24 31.03 62411.42 100

2007-08 15283.59 19.34 12202.87 15.44 4782.32 6.05 6926.67 8.76 4314.86 5.46 5838.33 7.39 5139.24 6.5 24551.84 31.06 79039.72 100

2008-09 15626.66 18.18 15195.46 17.68 6698.56 7.79 7066.37 8.22 6338.42 7.37 8005.68 9.31 6915.03 8.05 19705.49 22.93 85951.67 100

2009-10 14635.35 16.38 12955.32 14.5 7561.96 8.46 9899.98 11.08 6157.23 6.89 9319.39 10.43 7201.57 8.06 21709.83 24.3 89341.33 100

Food Grains Oil SeedsHorti-

culturalCommodities

Marineproducts

Spices Beverages& Tobacco

Animalproducts

OthersAgricultural

Product

TotalAgricultural

Export

in export of major agricultural groups such asBeverage and tobacco, Oilseed and Marineproducts together contributing 36.01% of totalagricultural export during 2009-10, whereasduring 2000-01 these products provided a shareof 49.26% in total agricultural export. However,the share of food grains, spices and animalproducts has increased from 13.69, 5.65 and5.87% to 16.38, 6.89 and 8.06%, respectivelybetween the decades and share of horticulturalcommodities has increased from 6.31 to 8.46%between the decades. The major problem forIndian horticultural export is lack of propermarket institution and supportinginfrastructure.

INSTABILITY ANALYSIS INAGRICULTURAL EXPORTSTo study instability in the export trade ofagricultural commodities of India over the period2000-01 to 2009-10, the deterministiccomponents of total instability in exports wascalculated by coefficient of variation in exportsis quantity and value terms. The results arepresented in Table 3.

Food Grain GroupThe coefficient of variation with respect to exportquantity of pulses and rice basmati was observedto be 46.14% and 35.68%, respectively duringthe study period 2000-01 to 2009-10. Theinstability with respect to export quantity of riceother than basmati and wheat were 62.63% and107.67%, it showed a relatively high instabilityin exports of quantity of rice other than basmatiand wheat.

Oilseed

The coefficient of variation of ground nut, castoroil, sesamum oil, Niger seed, and oil meal were37.83%, 26.69%, 23.70%, 36.25%, and 41.47%,respectively. Ground nut and oil meal showedhigher instability in value export 66.65% and58.17% where as castor oil, sesamum oil andniger seed showed relatively stable in valueexports with 46.96%, 47.35% and 29.30% duringlast decade.

Horticultural CommoditiesAmong the all horticultural commodities fresh

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fruits, fresh vegetables and floricultural productsshowed a relatively higher instability thanfruits/vegetables seeds, processed vegetablesand processed fruit juice. The instability forthese commodities was fruits/vegetables seeds20.92% in quantity export and 33.96% in valueexport, fresh fruits 55.99% in value export, freshvegetables 61.56% in value export, processed

vegetables 44.37% in value export, processedfruit juice 39.06% in value export andfloricultural products 51.23% in value exportduring last decade.

Marine ProductsThe coefficient of variation with respect toexports quantity of marine products during the

Table 3: Instability in Different Agricultural Crop


Quantity Value

SD A M CV SD A M CV

Food grain Pulses 95.85 207.74 46.14 227.34 554.49 41.00

Rice Basmati 397.11 1112.8 35.68 3114.34 4142 75.19

Rice other than Basmati 1610.74 2571.98 62.63 1986.5 2888.5 68.77

Wheat 1510.71 1403.08 107.67 829.35 795.08 104.31

Other cereals 1386.07 1349.59 102.7 1387.78 1238.6 112.04

Oil seeds Groundnut 78.88 208.54 37.8 433.39 650.2 66.65

Castor oil 71.06 26.21 26.69 541.78 1153.6 46.996

Sesamum oil 48.34 20.99 23.7 434.94 918.51 47.35

Niger seed 8.4 23.1 36.25 18.22 62.18 29.3

Oil meal 1845.08 4448.68 41.47 2841.33 4884.3 58.17

Horticultural Fruits/vegetables seeds 1.64 7.817 20.92 32.74 96.4 33.96

Commodity Fresh fruits N A N A N A 621.08 1109.3 55.99

Fresh vegetables N A N A N A 789.95 123.2 61.56

Processed vegetables N A N A N A 201.78 454.78 44.37

Processed Fruit Juice N A N A N A 261.67 669.95 39.06

Floricultural Products N A N A N A 146.38 285.73 51.23

Marine products Marine Products 81.3 522.21 15.57 1098.86 7069.9 15.54

Spices Total Spices 166.13 422.8 39.29 1816.17 3028.2 59.98

Beverages & Tea 13.02 187.24 6.95 429.06 2000.5 21.45

Tobacco Coffee 14.05 180.31 7.79 457.73 1514.7 30.22

Tobacco unmanufactured 45.77 145.21 31.52 958.82 13881.1 69.42

Tobacco manufactured N A N A N A 147.11 359.06 40.97

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Table 3 (Cont.)


Quantity Value

SD A M CV SD A M CV

Animal Products Dairy Product N A N A N A 340.23 504.44 67.45

Poultry Product N A N A N A 104.01 280.71 37.05

Meat and its Preparation N A N A N A 1678.1 2913.1 57.69

Other Sugar 142.12 1479.28 96.61 1762.066 1896.3 92.92

Commodities Molasses 250.25 246.48 101.53 69.74 71.29 97.82

Shellac 1.9 7.06 27.28 40.48 118.15 34.26

Cashew nut shell liquid 3.92 7.09 55.27 9.38 14.12 66.45

Cashew 13.03 113.79 11.45 34.2 2285.6 16.81

Cotton raw including waste 571.08 546.61 104.48 3499.77 3196 109.51

Jute N A N A N A 97.58 363.27 26.86

Guar Gum 49.52 167.1 29.63 383.69 810.95 47.31

Paper/wood products N A N A N A 1539.54 347.9 44.32

Miscellaneous Processed Products N A N A N A 519.28 1188.3 43.7

study period 2000-01 to 2009-10 was observed tobe 15.57% in quantity exports and 15.54% invalue exports. The instability of marine productswas relatively low as compared to othercommodities.

SpicesThe instability with respect to exports quantityof spices during the study period 2000-01 to 2009-10 was observed to be 39.29% and 59.98% inexports value. It showed a relatively lowinstability in quantity and high instability inexports value.

Beverages and TobaccoThe coefficient of variation with respect toexports value during the study period 2000-01to 2009-10 of Tea, coffee, and tobaccomanufactured were 21.45%, 30.22%, and40.97% which showed relatively low instability.Tobacco manufactured showed 69.42%

coefficient of variation which showed higherinstability in export value during study period.

Animal ProductsThe coefficient of variance with respect toexports value of animal products during the studyperiod 2000-01 to 2009-10 was observed to bepoultry products 37.05%, dairy products 67.45%and meat and preparation 57.61%. The poultryproducts were stable and dairy product and meat& preparations were relatively more instable ascompared to poultry products.

SUMMARYAgriculture is one of the strongholds of the Indian

economy and it accounted for 13.9% of Gross

Domestic Product (GDP) in 2011-12 (Economic

Survey 2012). Agricultural production is likely

to increase significantly and has a projected

growth rate of 2.5% during the 2011-2012 for the

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GDP of agriculture and allied sectors. India’s total

agricultural product exports have a potentially

large impact on world market. Total agriculture

products exports are Rs. 89341.33 cr which

contributes 10.57% share in total export in 2009-

10 (Ministry of Agriculture). The agricultural

commodities which have great role in India’s

agriculture export are cereals (mostly Basmati

and non-Basmati rice), coffee, spices, oil meal,

cashew, poultry and poultry products, and

marine products.

The Government of India, Ministry of

Commerce and Industry announces Export

Import Policy after every five years. The EXIM

policy is updated every five year on March 31

and modifications, improvements and new

schemes become effective from April 1 of every

year. India’s EXIM policy aims at developing

export potential, improving export performance,

encouraging foreign trade and creating favorable

balance of payments position.

CONCLUSION1. In EXIM policy (1997-2002) emphasis were

more on globalization, liberalization, de-licensing, automatic licensing and reductionin custom duties.

2. In EXIM policy (2004-09) emphasis were moreon destination diversification and productspecification through special export zones andagricultural export zones.

3. Rice (basmati and other than basmati) aremajor exportable food grain of India. Theshare of rice (basmati and other thanbasmati) was more than 65% in total foodgrain exports during last decade.

4. The share of horticultural exports was 6.31%in 2000-01 and 8.46% in 2009-10. This was apromising export group of India, but its exportgrowth is slow. India’s poor performance inworld market is because of its inadequateinfrastructure for production and marketing

of horticultural, special floral crops forexports.

5. High cost of production and absence of coldchains for perishable commodities like flower,fresh fruits/vegetables, etc., made the sizeof exports for these commodities were verysmall.

SUGGESTIONS FORIMPROVEMENT OFAGRICULTURAL EXPORTS1. To increase the export potential of India, the

concept of Agricultural Export Zone attemptsto take a comprehensive look at a particularproduce/product located in a contiguous areafor the purpose of developing and sourcing theraw materials, their processing / packaging,leading to final exports. Thus, the entire effortis centered on the cluster approach ofidentifying the potential product, thegeographical region in which these productsgrown and adopting an end to end approach ofintegration the entire process right from thestage of production till it reaches the market.

2. In study period there is no fixed trend inagricultural export so Government shouldamend the exim policy for growth andstabilization in agricultural export.

3. Government should provide subsidies foradopt technological up gradation andmechanization. Reducing the cost ofagricultural commodities production withtechnological up gradation and increasing inmechanization.

4. Government should make negotiationsregarding bilateral agreement between Indiaand other countries and thereby the trade riskcan be minimized.

5. Action needs to be taken to offer exportableagricultural commodities at competitiveprices than other exporting country so as tocapture the market.

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6. Animal products have good potential toincrease exports. To give a boost to exports ofanimal products various sanitary andphytosanitory measures should be taken upvigorously to ensure the internationalhygienic standards of animal products.

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