Export Potential of Agro Products in Gujarat: An Analytical StudyRutviz Dhanani (500035370)

Sahil Jain(500034741)Arunkumar Verma(500038320)MBA- International Business

ABSTRACT

Export Potential of Agro Products in Gujarat: An Analytical Study

Agriculture in India has multiple role to play with the change in global scenario. With the

advance in the globalization and modern agricultural system it is delivering /serving a major role

in economics, social culture, and enhancement of rural livelihood. Agriculture is the broad

concept that includes production, processing and distribution. Agro business involves various

stakeholders like input suppliers, farmers, wholesalers, retailers, importers, exporters, consumers.

The demand for the agricultural products from Gujarat is likely to have risen sharply during the

last decade or so. This is because the growth of industrial sector in Gujarat has been phenomenal

over the last decade generating significant additional demand for raw materials

The main objective of study is to demonstrate/identify constrain in development and increase in

export of agro products in Gujarat. It will focus on several important policy measures, to remove

5tphysical and infrastructural bottlenecks, Overcome logistics problems and promotion of R&D

in Gujarat. The study strives to focus on how to increase the export of agro products in Gujarat

by considering input management, infrastructure, stakeholders, government policies, logistics

and R&D. The study aims to suggest the measure to enhance the export of agro products from

Gujarat as well as analyzing the performance of Gujarat agriculture at Global level.

KEYWORDS: - Logistics, R&D, Agriculture production, Technology

INTRODUCTIONAgriculture continues to contribute 15% of Gujarat's GSDP and provides employment to almost 51.58% of our workforce, and naturally, we have been focusing particular attention to this sector. About 35% of the land area in Gujarat falls in arid and semiarid zone or along salinity affected areas. 3 out of 10 years have also traditionally seen inadequate rainfall. Despite these challenges, the farmers of Gujarat have shown great determination to contribute vigorously to state's overall growth.(1)

The agricultural growth rate in Gujarat rose from 3.3% in the 1990s to 11.1% during the decade 2001-02 to 2011-12.

India Gujarat0

2

4

6

8

10

12

Growth Performance In Agriculture Sector: Gujarat & India (2001-2012)

Source: Central Statistic Office (GOI), Directorates of Economic and Statistic, Gujarat

In fact, the production of cotton, wheat, fruit crops and milk have played a vital role in sustaining the agricultural growth in the state economy. The variability in growth rates appears to be reduced to a significant extent thus stabilizing the farmer's income. Although, the farmers of Gujarat have shown a move towards cash crops, fruits & vegetables and oil seeds, it is a matter of pride that the total production of food grains crossed 100 lakh MT for the first time in the history of the state in 2010-11.

The gross irrigated area has increased from 33 lakh hectare in 2000-01 to 53 lakh hectare by the end of 2012-13. At the same time we have also brought an area of 2,05,000 hectares under micro irrigation in 2012-13.(1)

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20

30

40

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80

Increased In Irrigated Area Of Gujarat And India(2001-2012)

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Source: Directors of Economic and Statistic, Ministry of Agriculture, GOI

The ambitious program for farm mechanization and agri-machinery service providers in the state have contributed to increased production. Gujarat intends to cover every village with an agro-service provider over the next five years. To bring about transparency and ease of access, the entire process of sanction of assistance for agriculture machinery has been made demand driven, web based and decentralized.

We have focused on increased production, improved yields, sustainable practices and stable income growth for farmers. The state lays emphasis on improving water resource management both by bringing in more and more area under conventional irrigation and at the same time giving a big thrust to rain water harvesting and micro irrigation.

Gujarat is also promoting high-tech agriculture in a big way, by assisting farmers for setting up green house, net houses and poly houses, resulting in increase in production of fruits and vegetables to 190.51 lakh MT in 2012-13. (1)

The Krishi Mahotsav has demonstrated the importance of effective transmission of knowledge from lab to land and empowerment of farmers in creating a sustainable and viable agricultural economy. The state will set up the Gujarat Agriculture Commission in 2013-14 and also plans to host the Global Agri Summit cum Exhibition to provide modern products and technology to the farmers at a single venue.

The term `agri-business’ is coined to encompass a wide range of economic activities directly or indirectly associated with agriculture and allied sectors.

A narrow definition of agri-products would include products of the sector `Agriculture & Allied Activities’ of the national accounts and their processing.

Thus, it would include agriculture, horticulture, floriculture, animal husbandry, poultry; A broad definition of the agri-products would, however, include products of the primary sector of the national accounts and their processing.

With this clarity about the agri-products, in the next section, we review the exports from Gujarat and their main features during the year 2000-01. The revealed Comparative advantage (RCA) of Gujarat over the rest of India is also examined in various commodity groups including agri-products. In the third section, we discuss the trends and potential of agriculture in Gujarat. The paper ends with some observations on the researchable issues and policy direction.

OBJECTIVES

Gujarat has vast untapped potential in agro industrial sector, which could be used advantageously to achieve multiple goals viz. increased income for farmers, rural industrialization, rural employment, better quality products to consumers. This can be achieved by new investments in agro industries by national/ multinational companies. The broad objectives of agro industrial policy are enumerated as under:

Gujarat stands fourth in the country in terms of per capita agricultural output. The State Government has also identified Agro and Food Processing Industries as one of the Thrust Industries in the new Industrial Policy 1995-2000. However, substantial investments have not come to this sector. Further, actual implementation of such projects has been poor, and less than in States like Maharashtra, Tamilnadu, Andhra Pradesh, Karnataka and Punjab.

Despite excellent potential for growth, a critical constraint in development of agro and food processing industry is the lack of supply chain infrastructure across the entire food chain. While Gujarat possesses competitive advantages in several crops like castor, cotton and horticultural crops such as bananas, mangoes, this advantage is often frittered away due to lack of farmer education in adopting best practices and understanding needs of focused end users. Numerous middlemen add to wastages from the farm to the consumer, retail, processor or exporter. This leads to 30-35% wastages from the farm gate to the final consumer leading to price trade-up. Farmers realize a mere 25-30% of the final consumer price as opposed to 65-70% in well-developed agricultural markets.

Thus the core focus of this report is:-

To analyze the potential export of agro products from Gujarat. To find the constraints in export of agro products faced in Gujarat. To analyze the steps taken by Gujarat government to enhance the export of agro products. To find the key areas for development in Gujarat in order to promote exports of agro

products.

REVIEW OF LITERATURE

In this report scholar have reviewed the paper of Ravindra H Dholakia, “Exports of Agri-Products from Gujarat: Problems and Prospects” IIM, Ahmedabad, and the review of this paper is as follow:

In this paper Ravindra H Dholakia have describe the advantage of Gujarat by that Ravindra H Dholakia says that what is the difference between ‘exports from Gujarat' and 'exports originating from Gujarat.' This is because Gujarat has the longest coast- line in the country with several seaports and even an airport having international links. Therefore, not all ex- ports from Gujarat necessarily originate from Gujarat. Similarly, some portion of exports from ports outside Gujarat may also originate from Gujarat. There are six major outlets for the exports from Gujarat. These are: (i) Gujarat Maritime Board (GMB) ports; (ii) Kandla sea port; (iii) Ahmedabad airport; (iv) Mumbai sea port; (v) JNPT port (Mumbai); and (vi) Mumbai air- port. While the first three are Gujarat-based, the remaining three are Mumbai-based. (2)

Ravindra H Dholakia had mention group-wise exports of commodity originating from Gujarat and all-India during the year 2000-01. The share of Gujarat in the total agri-product exports in the country works out to 12.8 per cent.

Some of the export features of Gujarat are as follow:

Almost 50 per cent of the exporters are private proprietors or partnership concerns. More than 80 per cent are producers and exporters implying that only 20 per cent are pure

traders in the export business in the state. Only a quarter of the units have the ‘export house’ or upward status for special benefits. More than 40 per cent of the exporting units have come up only after 1991-92. Only 10 per cent of the exporting units are in the agri-product sector. There are a large number of small and medium scale exporters in Gujarat with 29 per cent

of the exporters having less than Rs 5 million of exports and 37 per cent having exports between Rs 5 million and Rs 50 million.

According to this paper export intensity or export orientation can be defined as the proportion of exports in the total value of output produced in the sector. The export intensity in the agricultural sector is only 3.2 per cent at the national level, but 11.9 per cent in Gujarat. It is clear that the exports of agri-products originating from Gujarat as well as the nation represents basically the excess supply rather than targeted production or exclusive supply for the foreign markets.

FIGURE:-Export as Excess Supply

This feature has some interesting implications for price elasticity and the non-price aspects of exports of the Agri-products. Figure 1 depicts an extreme case of perfectly inelastic supply (SS) and a relatively inelastic demand (DD) of a good in the domestic market with the equilibrium price at P. At any price P1, it can be seen from Figure 1 that the price elasticity of export supply as an excess supply will invariably be greater than one if, in the absence of ex- ports, the equilibrium price in the domestic market is positive. The excess supply curve (ES) is more price elastic than both the demand (DD) and the supply (SS) curves. (2)

The potential of Gujarat agriculture in terms of the demand for agricultural products in Gujarat is likely to have risen sharply during the last decade or so. This is because the growth of industrial sector in Gujarat has been phenomenal over the last decade generating significant additional demand for raw materials. There are positive evidences to suggest that the domestic consumption demand for agri-products in Gujarat must have risen significantly during the past 15 years or so. This has happen because of sharp decline in the population living below poverty line since 1987-88 both in relative as well as absolute terms. The study also reports an estimated growth of real agricultural wages based on the information available from Agricultural Wages in India during the nineties for major states in India. Gujarat ranks second (after Kerala) with the annual growth rate of well above 6 per cent. (2)

Land-use statistics are very relevant in this context. As per these statistics, there has been an increase in the net sown area by 4 per cent during the nineties. Similarly, there is a steady reduction in the fallow land by over 35 per cent. The cultivable waste is more or less constant but stands at about 20 per cent of the net sown area. Two things can be inferred from the land-use data. First, they do not support significant down-turn of agricultural real incomes in Gujarat during the nineties. Second, there is a good potential to raise agricultural growth in Gujarat in future by exploiting cultivable wasteland. The second indicator for agricultural performance is in terms of the progress of irrigation. Again, the official data are available only up to 1998-99. The third indicator is the use of traditional and modern implements in agriculture. The fourth indicator, again from the livestock census, is about the population of cows, buffaloes, and poultry. The fifth indicator about the performance of agriculture in Gujarat during the nineties is in terms of the growth of real wages of the agricultural labour.

“Agriculture performance in Gujarat since 2000” by Ashok Gulati, Tushar Shah, Ganga Shreedhar (IWMI, IFPRI)

In the above paper Ashok Gulati, Tushar Shah, Ganga ShreInedhar has describe the introduction, production of crops from Gujarat as well as India, export of good from India and Gujarat, detail production and distribution of crop, detail study of it follow.

The economy of Gujarat is one of the fastest growing economies among all Indian states. It also has the distinction of achieving higher agricultural growth compared to national average. Geographical location of Gujarat has endowed it with longest coastal line among all states in India to international trade, facilitating easier access to international trade. In spite of industrialization majority of population in Gujarat is dependent on agricultural for its livelihood. Export plays a significant role in economic development of a country by enabling it not only to pay for its import requirement but also lead to multiple expansions in national income through foreign trade multiplier. Gujarat has an edge in production of castor, cumin, fennel, Isabgul, sesame, groundnut, mango, garlic, dehydrated onion, fish and seafood and cotton in the international market In this report Ashok Gulati, Tushar Shah, Ganga Shreedhar has describe Indian agriculture trade in which there description of effect of WTO (pre and post) in India export. India's global agricultural trade during pre and post-WTO period has been fluctuating. After post-WTO there is an 56% increase of export from India. This suggest the actual value of import/export of agri product before and after introduction of WTO.

FIRURE: - Export & Import Values of Agro-Commodities to the total National export & import (1990-2009). (3)

This research paper has derived some mathematical formula to show trade in Gujarat agriculture. The inter-sectorial terms of trade in a state economy is best measured with the help of GSDP data by sectors at current and constant prices. GSDP deflators by agricultural and non-agricultural sectors in Gujarat, and terms of trade defined as the ratio of the two series, i.e. PNA/PA- trends in terms of trade in Gujarat over the 30 years.

It can be seen that the series fluctuates considerably over time, and shows some broad decreasing, increasing and again decreasing trends over the three decades. The long-term trendsin the terms of trade in Gujarat, there would be three distinct phases, viz.

1. 1980-81, when the PNA/PA was declining;

2. 1990-1991, when the PNA/PA was rising; and

3. 2000 -2010, when the PNA/PA was again declining. The sectoral terms of trade in the

domestic economy is related with price incentives to producers, savings and investments in the economy.

The following equations show:

ln (Agri. + AH) = a + b ln (PNA/PA)-1, + u; and

ln(GSDP) = c + d ln (PNA/PA) -1 + v

Where u and v are random errors, and a & c are intercepts, and b & d are elasticity parameters. The estimates of these equations through OLS regressions are:

ln (Agri.+AH) = 9.63 - 0.667 ln (PNA/PA) -1 + e

P - values: (3.2E-57) (0.190): R Square = 0.036

And

ln (GSDP) = 11.11-1.775 ln (PNA / PA)-1 + e

P - Values: (2.1E-49) (0.042): R Square = 0.085

It can be seen from the above price-wise regression results that during 1980-90, the elasticity was positive and not significant, but during the latter period of 1990-2010, the elasticity was negative and significant. It is because of such a sharp contrast in the two phases that the overall regression for the whole 30-year period turned out to be statistically insignificant.

In recent past Gujarat has experienced significant increase in production of major crops. Farmers have changed from commercial crops to cash crops. There has been a significant increase in area under castor, mustard, and sesamum; groundnut and cotton, being the main cash

crops of Gujarat. The productivity of most crops has risen substantially over the years and this rise has been most pronounced during 2000-2010. All the cereals except maize, pulses, and gram achieved the peak of productivity during the period 2005-09. The coefficient of variation in Gujarat for most of the crops highlights a sharp decline in the risk factor and volatility in the productivity for farmers. It is interesting to see that the reduction in risk is more pronounced for commercial and cash crops than for traditional crops.

Apart from food grains (cereals and pulses), oilseeds, and cash crops like cotton and tobacco, Gujarat has leapfrogged in production of horticulture crops also. The area, production, and yield of fruits and vegetables have increased substantially. For example, from 1992-93 to 1999-00, production of fruits and vegetables grew by 5.5 percent p.a.; whereas from 2000-01 to 2007-08, the same grew at 12.8 percent p.a.

Source: Govt. of India (2009)

Figure: - Exports of Selected Items from Ahmedabad International Air-Cargo TerminalSource: Ministry of Agriculture, GOG

Gujarat has 40 seaports at different location, however, in terms of turnover; the ports of Gujarat are far ahead of the national average. Gujarat has only one major port, namely Kandla, which has consistently risen in ranks during the past decade and topped the chart for tonnage handled since 2007-08 displacing Vishakhapatnam as the highest tonnage handling port. Over this period, tonnage handled at Kandla port increased at 9.57 percent p.a. The Kandla port has shown a huge jump after 2004-05 and even the recent global economic slowdown has not affected Kandla port's performance adversely. In fact, several capacity expansion works were taken up during the global slowdown year of 2008-09 and the current capacity utilization for the Kandla port stands at 93 per cent.

By this report author is trying to conclude the Gujarat is having higher rate of export ratio compare to other states. After the introduction of WTO the export/import of country is being increased.

Data Analysis and Interpretation

In this scholar has describe the geographical area of Gujarat, land that comes under irrigation, and the comparison between the production of crops in India and Gujarat in introduction, Then we have describe the annual production of all crops in Gujarat. As Gujarat is producing highest cotton in India scholar has describe the production of cotton of last 10 years in detail, then he has describe the about horticulture, flowers, fishery. Then at last there is a description of how export of product take place from Gujarat through port. And there is description of SEZ (special economic zone)

The total geographical area of Gujarat is 19,602,400 hectares, of which crops take up 10,630,700 hectares which is almost 50% of the total land of Gujarat. The three main sources of growth in Gujarat's agriculture are from cotton production, the rapid growth of high-value foods such as livestock, fruits, vegetables, and fishery. Gujarat is located on the western coast of India and has the longest coastline of 1,600 km in the country. There are eight agro-climatic zones in the state that support cultivation of a wide range of crops.

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Gujarat's Agriculture Contribution in India's Agricul-ture Economy

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Source: Directorates of Economics and Statistic, Ministry of Agriculture, GOI

Crops:

Now the major crops of Gujarat: Wheat, Bajra, Rice, Maize, Groundnut, Mustard, Sesame, Pigeon pea, Green Gram, Gram, Cotton, Sugarcane. Gujarat is the largest producer of, Castor, Tobacco, Isabgul (Psyllium), Sesame seeds, Cotton and Groundnut in the country.

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Annula Production Of Crop(2012-13)

Sugarcane Cotton Wheat Banana GroundnutPotato Rice Onion Bajra MazeTobaco Gram Coconut

Source: Ministry Of Agriculture, GOG

During 2012-13, total food grain and oilseed production in the state was at around 7.33 million tons and 2.89 million tons, respectively. Sugarcane is the major crop in Gujarat, followed by cotton, wheat, groundnuts and potato. Sugarcane production in the state totaled around 14.17 million tons over 2011-12. Other major crops grown in the state include tobacco, coconuts, rice, onion, jowar (sorghum), bajra (millets), oilseeds, maize, tur and gram.(4)

Figure: Area and Production of Rice, Wheat, Jowar, Bajra(2)

There is an increase of 79.65% in food grain production in 2010-11 over the previous year 2009-10. The productivity of food crops is estimated at 20.03 MT/Hectare.

Figure: - Production of cotton in Gujarat (4)

The production of cotton during the year showed an increase of 32.75 percent in 2010-11 over the previous year, and amounts to 31% of production in the country. (4)

Horticulture:The total area under cultivation for horticulture is about 2.5 Lakh ha. The major crops of horticulture are Mango, Banana, Lime, Guava, Tomato, Potato, Onion, Cumin, Garlic, Isabgul, Fennel. State is in leading position in production of Onion, Potato, Banana, Lime, Papaya, custard and guava. The average productivity of vegetables is estimated at 18.95 MT/Hectare. World’s largest producer of cumin. The state also enjoys leading position (1st rank to 4th rank) at all-India level in the productivity levels of major fruits and vegetables including onion, potato, banana, guava, tomato, lime, papaya, etc. The famous kesar variety of mango in Gujarat, known as ‘Gir Kesar’ mango, has been granted Geographical Indication tag, thus making it the second mango variety in India to have such distinction. At all-India level, the State contributes 14 percent to 20 percent share in major fruit and vegetable crops like; Papaya, Sapota, Onion, Banana and Lime. (5)

Sources: Socio Economic Review 2011-12 of Gujarat; Department of Horticulture, Gujarat; Agriculture and Cooperation Department, Gujarat.

Animal Husbandry:The total population of livestock in Gujarat is 199.39 lakh. While it is divided into cattle and poultry having 67.49 lakh / 62.84 lakh, 72.36 lakh respectively. Which contribute 5% GDP of state. Gujarat has 23 Intensive Cattle Development Projects (ICDP) with 1078 Breeding Centers in the state which are aimed at improving the breed of cattle and buffaloes. Gujarat has 12 Intensive Poultry Development Projects (IPDP), 5 District poultry Extension Centers, and 85 Poultry Service Centers.

Flowers:During 2010-11 the production of flowers was 1.3 lakh tonnes, spread over 15,000 hectares. State has taken a lead in the sector of establishing Green House by producing high value flowers like Dutch Roses, Gerberas and Carnation. Government of Gujarat offers 50% subsidy for setting up green houses. Flowers grown in south Gujarat are sold in the world's biggest flower markets of Amsterdam in Holland and London in United Kingdom on a regular basis. Three firms from south Gujarat export as much as 1.5 lakh Dutch roses from the state. One of these also exports 50,000 Gerbera flowers to London. (5)

Sources: Socio Economic Review 2011-12 of Gujarat; Department of Horticulture, Gujarat; Agriculture and Cooperation Department, Gujarat. The Times of India

Fishery:Fishing fleet have increased up to 35,275 (2011) of which 23,066 were mechanized and 12,209 were non-mechanized. During the year 2010-11, the total fish production in Gujarat has been estimated at 7.75 lakh tones. The area of continental shelf is estimated at 164,000 sq.km and is 32.54 % of the shelf area of India.

Source: GAIC; Socio Economic Review 2011-12 of Gujarat; Directorate for Animal husbandry, cow breeding and fisheries, Gujarat

Export Potential of Agro Commodities in Gujarat

Gujarat has 42 ports along a 1,600 km coastline including one major port at Kandla and 41 minor ports. The state has one of the strongest port infrastructures in India. It is the first state in India to take up port privatization. GMB, which manages 41 non-major ports, has developed port privatization models such as private/joint sector ports, private jetties, captive jetties and GMB jetties. The state has five direct berthing commercial ports, seven direct berthing captive port terminals and four lighterage- cargo ports. The state handled the largest (73.6 per cent) share of cargo traffic in India’s non-major ports, and 14.7 per cent in India’s major ports over 2011-12.(1)

The intermediate and minor ports of Gujarat handled a total cargo of 259.0 million tons during 2011-12. This implies an increase of about 12.1 per cent compared to the previous year. The Kandla port handled 82.5 million tons of cargo during 2011-12. Gujarat is having one of the biggest port of India, having draft of 19meter while, JNPT (Mumbai) is having draft of 7meter. Kandla is having four-lane connectivity within the port and it is the first SEZ in India. As it is having 19 meter draft it can mother ship of capacity 12000-15000 TEU. he marine infrastructure at APSEZ consists of ten (10) berths for handling dry bulk & break bulk cargo, three (3) berths for handling liquid cargo, six (6) container berths including a Ro-Ro berth, three (3) mechanized import cargo berths and 2 single point moorings for crude oil imports.(1)

It is important to distinguish between 'exports from Gujarat' and 'exports originating from Gujarat.' This is because Gujarat has the longest coast- line in the country with several seaports and even an airport having international links. Therefore, not all ex- ports from Gujarat necessarily originate from Gujarat. Similarly, some portion of exports from ports outside Gujarat may also originate from Gujarat.

At the end of 2009-10, the state had around 18,421 km of state highways, 20,503 km of major district roads, 10,227 km of other district roads and 24,852 km of village roads. Almost 96.7 percent of roads are surfaced and all-weather roads. Pragatipath Yojana, a state government initiative introduced in 2005, envisages the development of nine high-speed corridors, and widening of highways to connect tribal, coastal, industrial and rural areas with mainstream areas. Total length of the project is 3,710 km at a cost of US$ 450 million. (6)

Because of good geographical area Gujarat is having good road transportation facility and due to that we can save transport time and cost. And Gujarat is having one international airport in Ahmedabad along with 13 domestic airport. The Sardar Vallabhbhai Patel International Airport in Ahmedabad is India’s seventh busiest airport, with an average of 112 aircraft movements per day over 2011-12. A feasibility study for an international airport at Fedra in Dholera (about 130 km away from Ahmedabad) has been completed in January 2010. Once ready, the airport could be extremely useful for passenger and cargo purposes. The state government has also signed a MoU with Delhi Metro Industrial Corridor Development Company in this regard.

The rail traffic in Gujarat mainly falls under the divisions of Western Railway: Vadodara, Rajkot, Bhavnagar, Ratlam, Mumbai and Ahmedabad. The state had a railway network of 5,271

km as of March 2011. One of the advantage of rail in Gujarat is that, they are having good connectivity with ports and warehouses.

SEZ (Special economy zone):

As of November 2013, Gujarat had 43 formally approved SEZs, seven in-principle approvals and 30 notified SEZs. Gujarat ranks first in terms of total area covered under SEZs in India. It is also a leading SEZ state with the highest geographical area of 29,424 hectares under SEZ development. Gujarat has 18 operational SEZs. Some of them are as follows: Kandla SEZ, Surat SEZ Apparel Park. It is the first state to formulate a SEZ policy, which includes flexible labour laws and exit options for investors. SEZs in Gujarat receive a 10-year corporate tax holiday on export profits (100 per cent for the initial five years and 50.0 per cent for the next five years). (7)

As of March 2012, there were 200 APMC and 401 market yards operational in the state. 4-Special Yards in view of WTO (COTTON, TOBBACO, SPICES and GROUNDNUTS)

As we know that the share of Gujarat in the total agri-product exports in the country works out to 12.8 per cent and is likely to increase in future because of the above advantage.

Steps Taken by Government to Enhance the Export

Some of the recent initiative taken by Gujarat government in WTO

Agri-Export Zones for Mangoes, Vegetables and Onions set up in State Perishable air cargo complex at Ahmedabad International airport being set up –GOI

sanction Agro Industrial policy to support Agro Export & Processing of Agro Products Testing laboratory being set-up with Gujarat Agriculture Universities Special efforts to guide Farmers to produce QUALITY product including ORGANIC

PRODUCTS FOUR SPECIAL markets being created for spices , Fruit crops, vegetables & flowers and

Oils seeds GUJARAT has large warehousing Capacity & cold storage chain

If we talk about SPECIAL market then there are 200 APMC and 401 Marketing yard and there are 4-Special Yards with reference to WTO i.e of COTTON, TOBBACO, SPICES, and GROUNDNUTS.

One of the major moves made by the state government was splitting Gujarat Agricultural University into 4 universities- Anand, Junagadh, Sardarkrushinagar Dantiwada and Navsari

Agricultural universities by the Agricultural Universities Act in 2004. This was done to strengthen agricultural research, education and extension activities at the regional level.

Advance Agri research & Education efforts of four university are as follow:-

Anand University for Center of Excellence on Biotechnology Navsari University for Center of Excellence on Post-Harvest Technology Navsari Advanced Research and Educational Centre for Horticultural Crops Junagadh University for Center of Excellence on soil and water Management Sardar Krushinagar University for Center for Excellence on Castor

Beside this government has started:-

Krushi Mahotsav 225 Talukas and 4397 village clusters were visited with 4400 Krishi Raths Around 3.5 lakh soil specimens were tested in laboratory 2.75 lakh soil health cards were given 40 lakh animals were vaccinated and around 4.5 lakh animals were treated for

diseases National Agricultural Insurance Scheme Gujarat Green Revolution Kisan Credit Cards

This lead to increase in productivity of crop and we started getting surplus crop which lead to increase in export of agri product form state.

CONSTRAINTS IN PROCESSING AND EXPORTING AGRICULTURAL COMMODITIES FROM GUJARAT

The volumes of exports from a country are significant as they allow domestic producers to access foreign markets. The exports from primary sector are important for improving rural income. Export of value added products from agriculture sector thus presents good opportunity to boost standard of living of rural population. The constraints in export of agricultural commodities and agro based products from Gujarat are studied in this chapter. The agri exporters face constraints due to factors emerging from within the country as well from factors emerging from changes in international market.

The Government of India formulated EXIM policies regularly and launched many a programmes to boost exports. Gujarat government has taken many initiatives to increase agriculture exports. The multilateral negotiations under the auspices of the GATT and then WTO were aimed to reduce trade barriers existing in the form of tariffs and non-tariffs barriers. But eventually there emerged new international standards for products and production methods, which are perceived to be further obstacles to cross border trade by the exporters of developing countries like India.

Certain WTO provisions like agreement on SPS, Agreement on TBT, and agreement on agriculture and TRIPs agreement have trade restrictive.

Impact of EXIM Policies:

The exporters were questioned on impact of EXIM policies on their exports. Most of the exporters reported decline in export sales in value terms, due to downfall in export of high value items like Ground nut, cotton, sesame etc. According to majority of exporters, the EXIM policies of the government had a negative

Impact at the price level and on the export front especially in the case of items like pickle, Mango pulp, etc. Due to increased production of groundnut from countries like Indonesia and UK, there was decline in international prices. There is oversupply of these commodities in the world market. Though exports of cotton, castor, Tobacco are also subjected to SPS regulations, the magnitude of the problems associated with this is not significant in view of exporters. Certain overseas buyers required the implementation of HACCP regulations, as this would fetch a premium price for the products. The liberalization measures, changes in EXIM policies or implementation of WTO provisions per se did not have much implication on the industry.

Most of the units reported an increasing trend in export sales and net profit as a result of liberalization measures and EXIM policies. But they opined that SPS, and TBT regulations appeared trade restrictive in nature at least in the short run. But implementation of these measures facilitated value addition, quality improvement, product diversification, branding etc, which in turn sustained export sales

Selecting Overseas Market and Ownership of Processing Unit:

In export marketing, selection of overseas market is the first stage. It is difficult to succeed in exporting unless a right market is found out for the right product. It is costly and time-consuming too. Thus selecting proper market avoids wastage of time and efforts. A number of factors are taken into account for evaluation when a decision on selecting overseas market is made by the exporters. Apart from others, it includes product specification, market potentials existing, profitability, and political situation and so on.

Port Infrastructure:

port infrastructure is not having last mile connectivity so this lead to increase the turnaround time of ship which result in wastage of money and time for that ship.

Conclusion

Though Gujarat’s agricultural sector showed high fluctuations during the eighties and even the nineties, agricultural growth seems to have grown rapidly and with relatively less volatility after 2000. Cotton, high value sector (i.e. livestock, fruits and vegetables) and thirdly wheat are the main sources of growth during this period. Not only have the value of their output grown much faster than other sectors, area, yield and production data also confirms these sectors have witnessed much growth. This results in increase export of agri product from Gujarat.

As it is known that Port infrastructure, road infrastructure, agriculture infrastructure and government initiative has played a major role in increase in production that lead in increase in export of product like Castor, Tobacco, Isabgul (Psyllium), Sesame seeds, Cotton, Groundnut livestock, fruits, vegetables, fishery. Increase in export demand result in increase in production that not only increase the GDP of Gujarat but also provides employment to almost 51.58% of our workforce.

References1. Socio Economic Review 2011-12 of Gujarat , department of agriculture and corporation , GOI,

Gujarat green revolution company limited 2. Ravinder H Dholakia “ Expert of agri products from Gujarat – Problems and prospect” IIM

Ahmedabad3. Ashok Gulati Tushal Shah Ganga Shridhar “Agriculture Performance in Gujarat since 2000”4. Scio Economic Review 2011-12 of Gujarat, previous Socio Economic Review.5. Socio Economic Review 2011-12 Gujarat Department of Horticulture, Gujarat , Agriculture and

cooperation Department ,Gujarat 6. Vibrant Gujarat 6th Global Summit, “ Agri Business and food Processing’7. Sezindia.nic.in