The Role of Government Policies in Agro Commodity Export in India

Are you looking to export agro commodities from India? The Indian government’s policies play a significant role in shaping the future for agro export businesses. It influences both the opportunities and obstacles within this vast sector.

Many initiatives have been taken that aim to streamline agro export operations and boost overall productivity. Here’s a complete overview of how government policies are shaping the future of India’s agro export sector.?

1. Agricultural Export Policy (AEP) 2018

The year 2018 witnessed an exceptional step taken by the government of India with the introduction of Agricultural Export Policy. The policy had the vision to boost India’s agriculture export potential and enhance the country's position in the global market. AEP helped farmers and exporters to diversify their export portfolio. Instead of just selling commodities like rice and wheat, they encouraged people to sell products like processed food, organic food, and many other special food products. This helped India to have a deeper penetration in the foreign agro markets. The AEP also aimed to decrease bureaucratic hurdles and streamline export procedures. It focused on digitization, reducing paperwork, and promoting easier access to export-related services.?

2. Free Trade Agreements (FTAs) India's strategic shift towards bilateral Free Trade Agreements (FTAs) and multilateral trade deals has significantly expanded market access for Indian agro-commodity exporters. Partnerships with countries like the United Arab Emirates (UAE), Australia, and the European Union (EU) have resulted in reduced tariffs and streamlined trade procedures, enhancing the competitiveness of Indian agricultural products.

These new trade agreements are specifically designed to facilitate the export of key Indian agricultural commodities, including rice, spices, pulses, and sugar. By lowering trade barriers and simplifying customs regulations, these agreements provide Indian exporters with a competitive advantage in the global market.

3. Infrastructure Support through Agri-Infrastructure Fund

The government of India has recently taken some substantial measures to boost the infrastructure of agro businesses in India. A key component of the Atma Nirbhar Bharat initiative, the Agro-Infrastructure Fund, offers financial support to agri-entrepreneurs, cooperatives, and farmer groups for the development of post-harvest infrastructure. This crucial investment enables improved storage, packaging, and transportation facilities, significantly enhancing the quality and competitiveness of Indian agricultural exports to export agro commodities globally.?

By addressing the challenges associated with post-harvest losses and ensuring that products reach global markets in optimal condition, the agro-infrastructure Fund plays a pivotal role in driving the growth of India's agricultural exports.

4. Subsidies and Incentives for Exporters

Government initiatives have provided significant financial support to Indian exporters to enhance their global competitiveness. Programs such as the Merchandise Exports from India Scheme (MEIS) and the Remission of Duties and Taxes on Exported Products (RoDTEP) have offered exporters monetary incentives to offset costs and compete effectively in international markets.

Furthermore, the Production-Linked Incentive (PLI) scheme for food processing industries, introduced in 2021, has aimed to stimulate growth in agro-based processing and value addition, thereby promoting exports of processed food products.

Conclusion:

India's agro-commodity export sector is significantly influenced by government policies. The Agricultural Export Policy (AEP) of 2018 aimed to diversify exports beyond staple commodities and streamline procedures through digitization. Free Trade Agreements (FTAs) with countries like the UAE and the EU have enhanced market access, reducing tariffs for key products. The Agri-Infrastructure Fund supports post-harvest improvements, ensuring higher quality exports. Additionally, initiatives like MEIS and RoDTEP provide financial incentives for exporters, promoting competitiveness in global markets. These efforts collectively position India favorably in the international agro-export landscape.

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