Agriculture exports could cross $42 billion this year: CACP
by undergoing a structural transformation,” the paper has commented.
The CACP paper also points out the changing composition of India’s agricultural exports basket between 2001-12. In the last fiscal, rice was the leading agriculture exports products, followed by raw cotton, marine products, oil meals and meat.
However, in 2001-12 , marine products were the largest agricultural exports accounting for one-fifth of total exports followed by rice.
Gulati uses a simple barometer of export competitiveness by comparing domestic prices with its export or import parity reference price measured over a period of time. “If domestic price of any commodity is lower than the export or import parity reference price, then the commodity price is export or import competitive,” the paper noted.
Based on these parameters, Gulati points out that wholesale prices and support prices of rice have been lower than international prices especially during the last six years. Thus rice has been export competitive as can be seen from the 10 million tonne of exports in 2011-12 and close to seven million tonne of export during first eight month of 2012-13.
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