Export Opportunities for Agro-based Products

Presented by Dr. J. DiraviamProgramme Coordinator

Krishi Vigyan Kendra, KarurEmail: skvkk@yahoo.co.in

Mobile: 9488967675

India’s Agri Exports: PotentialThe size of the global food trade is about USD

650 bn.Value of India’s agri exports is about USD 10 bn

i.e. less than 1.50%.India has one tenth of world’s arable land (size

is more than China’s).It has rich and diverse agro climatic zones with

more than 50 major crops.One fifth of world’s irrigated land.2nd largest producer of fruits and vegetables.3rd largest producer of agri commodities

(largest in food grains).

Agri Exports – India’s PotentialNo. 1 Producer of Tea, Mango, Banana,

Cashew, Cauliflower, Okra, Pulses, Milk etc.Largest producer, consumer and exporter of

spices.The country is a treasure house of medicinal

aromatic plant species.Exports are mainly confined to commodities.

Tremendous scope for value addition.In horticulture products, India has certain

competitive advantages.WTO regime provides great opportunity for

exports.Farmers can benefit from exports of high

value products.

4

MilkLargest Producer91 Mn T

F & V#2 in the world151 Mn T

Food Grains#2 in the world(220 Mn T)

Cattle / buffaloesLargest in the world283 million

TeaLargest Producer(0.85 Mn T)Sugarcane

# 2 in the world(245 Mn T) Goat & Sheep

182 million

FisheriesMarine: 2.7 Mn TInland : 3.1 Mn T

India is the front ranking producer of many perishable commodities

Agri Exports: What Constrains Us?

Low productivity due to inappropriate cultivation practices and improper harvest methods. This affects international competitiveness.

Inadequate infrastructure.Too many middlemen in the procurement

chain.Lack of contract farming practices.Quality problems due to poor post-harvest

management. Inadequacy of domestic quality standards.

Not able to meet stringent SPS/Codex requirements of developed countries.

No clear focus on exports due to vast domestic market with low quality standards.

Gap Between Farmers and Exporters

Farmers Exporters

InputsInfrastructure

Storage Transportation

TechnologyFinance

Quality AssuranceTraining

Broken Agri Chain in India

Production

•Poor extension•Supply of inputs•Low productivity•Outdated farming practices

Supply Chain Processing Marketing

• High wastage •Lack of storage• Poor transportn.• Many intermediaries

• No assured supply of inputs• Lack of processing facility•Technology

•Poor infrastructure•Lack of grading• No market linkages

Broken chain increases credit risk and limits credit flow

Qty in MT; Value in Lakhs Rs

Export Statement of APEDA Products

Qty in MT; Value in Lakhs Rs

Export Statement of APEDA Products

Qty in MT; Value in Lakhs Rs

Export Statement of APEDA Products

Product Major MarketsFloriculture USA, Japan, UK, Netherlands & Germany

Fruits & Vegetable SeedsPakistan, Bangladesh, USA, Japan & Netherlands

Fresh OnionsBangladesh, Malaysia, Sri Lanka, UAE, Pakistan & Nepal

Other Fresh Vegetables UAE, Bangladesh, Pakistan, Nepal & Sri LankaWalnuts Spain, Egypt, Germany, UK & NetherlandsFresh Mangoes UAE, Bangladesh, UK, Saudi Arabia & NepalFresh Grapes Netherlands, UK, UAE, Bangladesh, Belgium

Other Fresh FruitsBangladesh, UAE, Netherlands, Nepal, Saudi Arabia

Dried & Preserved Vegetables Russia, France, USA, Germany & Spain

Mango PulpSaudi Arabia, Netherlands, UAE, Yamen, Arab Republic & Kuwait

Pickles & Chutneys Russia, USA, Belgium, Netherlands & FranceOther Processed Fruits USA, Netherlands, UK, UAE & Saudi Arabia

GroundnutsIndonesia, Malaysia, Philippines, UK & Singapore

Major commodities and the importing country

Product Major MarketsBuffalo Meat Malaysia, Philippines, Saudi Arabia, Jordan & AngolaSheep / Goat Meat Saudi Arabia, UAE, Qatar, Oman & KuwaitPoultry Products UAE, Kuwait, Oman, Germany & Japan

Dairy ProductsBangladesh, Algeria, UAE, Yamen, Arab Republic & Egypt

Animal Casings Germany, Portugal, France, Spain & ItalyProcessed Meat Seychelles, UAE, Hong Kong, Germany & USAGuar Gum USA, China, Germany, Italy & NetherlandsJaggery & Confectionery Portugal, USA, Bangladesh, Pakistan & Nepal

Cocoa ProductsNepal, Netherlands, Malaysia, Yamen Arab Republic & UAE

Cereal Preparations USA, UK, Nepal, Sri Lanka & UAEAlcoholic Beverages Jamaica, Thailand, UAE, Angola & BhutanMiscellaneous Preparations UAE, Iran, USA, UK & IndonesiaMilled Products USA, UK, Indonesia, Maldives & UAEBasmati Rice Saudi Arabia, Kuwait, UK, UAE & Yamen Arab Rep.Non Basmati Rice Nigeria, Bangladesh, South Africa, UAE & Ivory CoastWheat Bangladesh, Philippines, UAE, Sudan & MyanmarOther Cereals Bangladesh, Sri Lanka, Sudan, Benin, ThailandNatural Honey USA, Germany, Saudi Arabia, UK & UAEPulses Bangladesh, Sri Lanka, Pakistan, UAE & Nepal

Exports: Share of Tamil Nadu

21.15%Marine Products18.30%Ores & Minerals

10.95%Chemicals & Allied products, including basic chemicals, pharma & cosmetics

05.52%Agro & Processed foods33.00%Leathers & Leather goods18.30%Textiles & Garments11.05%Engineering goods10.64%Electronic hardware & IT

% share of TN in India

Product

TN EXPORTS – AGRO & PROCESSED FOODS

0

200

400

600

800

1000

1200

1400

2006-07 153 12 205 248 167 1248 353 8 12 1135

2007-08 1113 6 379 408 167 1136 467 21 9 1076

Pulses, Cereals, Seeds

Rice Basmati

Rice (Other than

Dairy, Meat,

Polutry

Floriculture

products

Sugar & Mollasse

s

Groundnut

Spirit & Beverag

es

Castor Oil

Fruits, Vegetabl

es,

Rs. Crores

Agricultural and Processed Food Products Export Development Authority (APEDA)

The Agricultural and Processed Food Products Export Development Authority (APEDA) was established by the Government of India under the Agricultural and Processed Food Products Export Development Authority Act passed by the Parliament in December, 1985. The Act (2 of 1986) came into effect from 13th February, 1986 by a notification issued in the Gazette of India: Extraordinary: Part-II [Sec. 3(ii): 13.2.1986). The Authority replaced the Processed Food Export Promotion Council (PFEPC).

APEDA - ASSIGNED FUNCTIONSDevelopment of industries relating to the

scheduled products for export by way of providing financial assistance or otherwise for undertaking surveys and feasibility studies, participation in enquiry capital through joint ventures and other reliefs and subsidy schemes;

Registration of persons as exporters of the scheduled products on payment of such fees as may be prescribed;

Fixing of standards and specifications for the scheduled products for the purpose of exports;

Carrying out inspection of meat and meat products in slaughter houses, processing plants, storage premises, conveyances or other places where such products are kept or handled for the purpose of ensuring the quality of such products;

APEDA - ASSIGNED FUNCTIONSImproving of packaging of the Scheduled

products; Improving of marketing of the Scheduled

products outside India; Promotion of export oriented production and

development of the Scheduled products; Collection of statistics from the owners of

factories or establishments engaged in the production, processing, packaging, marketing or export of the scheduled products or from such other persons as may be prescribed on any matter relating to the scheduled products and publication of the statistics so collected or of any portions thereof or extracts therefrom;

Training in various aspects of the industries connected with the scheduled products;

APEDA is mandated with the responsibility of export promotion and development of the following scheduled products:

Fruits, Vegetables and their Products. Meat and Meat Products. Poultry and Poultry Products. Dairy Products. Confectionery, Biscuits and Bakery Products. Honey, Jaggery and Sugar Products. Cocoa and its products, chocolates of all

kinds. Alcoholic and Non-Alcoholic Beverages. Cereal and Cereal Products. Groundnuts, Peanuts and Walnuts. Pickles, Papads and Chutneys. Guar Gum. Floriculture and Floriculture Products Herbal and Medicinal Plants

APEDA – Monitored Products

What is Agri Export Zone ?

Agri export Zone attempts to take a look at an identified produce/ product or a group or a group of produce/ products sourced from a geographically contiguous area with a view to comprehensively addressing all the issues relating to each stage of the entire value chain, from farm to the ultimate consumer

Agri Export Zones - TNCommodity Location

Cut flowers Hosur (Dharmapuri and Krishnagiri)

Flowers Nilgiris Dt.Mango Madurai, Theni,

Dindigul, Virudhunagar, Tirunelveli Dt.

Cashew Cuddalore, Thanjavur, Pudukkottai and Sivaganga Dt.Proposed

Banana Trichy

What does AEZ entail ?

Utilise existing interventions in a coordinated manner to promote exports (“Convergence”)

Partnership of farmers, processors, exporters, State Government agencies and Central Government agencies.

Focus on important issues.

Agri Exports activities

MARKET IDENTIFICATION OF PRODUCT & QUALITY PARAMETERS

MARKETING INPUTS SEEDS, FERTILIZER, NUTRIENTS WATER, PESTICIDES, CREDIT TRANSPORATION RESEARCH & PRE HARVEST TECHNOLOGY & PRACTICES DEVELOPMENT PACKAGING PROCESSING SORTING & GRADING TRANSPORTATION POST HARVEST HARVESTING TECHNOLOGY & PRACTICES 1. APEDA 1. DOA

2. NHB PARTNERSHIP 2. DOH

3. MFPI 3. MARKETING BOARDS

4. SFAC 4. SIDC

5. DGFT 5. SEB

6. MOA 6. FINANCE DEPTT.

7. RESEARCH AGENCIES

STATE GOVT. & ITS AGENCIES

CENTRAL GOVT. & ITS AGENCIES

What does AEZ entail ?

Fiscal

Financial

Monetary

Administrative

Legal

Tariff & Non tariff Related issues

Excise, Custom, Sales Tax, Mandi Tax etc. rebate by central and State agencies: Schemes of APEDA, NHB, MFPI, MOA etc.

: Reduction in interest on credit by banks

: Manpower requirement for research & extension related activities: Amendment of regulations with regard to movement of goods, institutional arrangement for consistent supply of produce etc.

: Import of duties, product standards, pesticide residues, Codex, etc.

Agri Products - Exports India's exports of Processed Food was Rs.

31551.99 Crores in 2013-14, which including the share of products like:

Mango Pulp (Rs. 772.97 Crores), Dried and Preserved Vegetable (Rs. 742.74

Crores), Other Processed Fruit and Vegetable (Rs.

2,266.66 Crores), Pulses (Rs. 1,746.34 Crores), Groundnuts (Rs. 3,187.69 Crores), Guargum (Rs. 11,734.51 Crores), Jaggery & Confectionary (Rs. 1,136.91 Crores), Cocoa Products (Rs. 570.80 Crores), Cereal Preparations (Rs. 2,855.01 Crores), Alcoholic and Non-Alcoholic Beverages (Rs.

2,393.54 Crores) Miscellaneous Preparations (Rs. 2,183.81

Crores).

Agro Processed products - ExportIndia's food processing sector covers fruit and

vegetables; spices; meat and poultry; milk and milk products, alcoholic beverages, fisheries, plantation, grain processing and other consumer product groups like confectionery, chocolates and cocoa products, soya-based products, mineral water, high protein foods etc.

Since liberalization in Aug'91 proposals for projects of have been proposed in various segments of the food and agro-processing industry.

Besides this, Govt. has also approved proposals for joint ventures; foreign collaboration, industrial licenses and 100% export oriented units envisaging an investment. Out of this, foreign investment is over Rs.10,000 crores. 

SummaryThe Indian food processing industry is

primarily export orient. India's geographical situation gives it the unique advantage of connectivity to Europe, the Middle East, Japan, Singapore, Thailand, Malaysia and Korea. One such example indicating India's location advantage is the value of trade in agriculture and processed food between India and Gulf region

Thank You