Despite the dent from curbs in exports of rice and other farm produce, India’s agriculture exports this financial year are expected to reach the last year levels of $53 billion, a senior official said Thursday
“We expect that we would reach that level in spite of $ 4.5 billion-USD 5 billion impact due to the restrictions,” Additional Secretary in the commerce ministry Rajesh Agrawal told reporters here on Thursday.
The government this year banned exports of non-basmati rice and put curbs on sugar and onion exports.
Last year India exported $ 11.14 billion of rice. In April-November rice exports declined 7.65 per cent to $ 6.5 billion. Though only basmati rice exports are now allowed there has been an increase in export volume and value realisation.
He said the government is promoting exports of new products like bananas and value-added millet products to new global destinations.
“In the next three years, we are hoping to increase banana exports to $1 billion from $173 million at present,” he said. Agricultural and Processed Food Products Export Development Authority has developed a protocol for exporting bananas through sea. First shipment has been sent to the Netherlands and newer destinations will be added.
This sea protocol is a big breakthrough as it reduces costs. Earlier shipments were going through air. Banana is the most traded fruit in the world with total trade at $16 billion.
In other fruits and vegetables the export growth has been 15% this year and in the next three years aim is to take it to $ 1 billion. Demand for meat, dairy and poultry products registered a healthy growth rate during April-November and importers from more countries have shown an interest in producing from India.
Another area that the government wants to focus on alcoholic beverages. The global trade in alcoholic drinks is more than $100 billion and India only has a share of $325 million. The aim is to increase the exports of spirits from India to $ 1 billion in the next three years.
The two key Free Trade Agreements (FTAs) that are being negotiated with the UK and the European Union has a significant chapter on trade in wines and spirits. While both UK and EU are seeking access to Indian markets on preferential tariffs, India too is negotiation easier terms for its spirits industry.
“On the market access point of view, it is on a reciprocal basis. If we are opening up our market in any way…we are also trying to look for market access in other countries. This is one of the areas (where) we are trying to negotiate upon and…we are trying to see that the duty concessions that are required in various destinations, we get (that),” Agarwal said.
He added that the condition of the UK that for a product to qualify as a whisky in its market it must be matured for a period not less than three years has not yet been resolved. India’s stand is that because outfits weather conditions maturation of one year can deliver the same results.
The definition of what classifies as “scotch” whiskey also remains a sticky point. “The debate is still on whether we should brand it as Indian whiskey or look for a scotch (brand)…International law in many countries prohibits that (one-year thing). It is an unresolved issue,” he added.