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India is among the world's leading producer of cereals, milk, sugar, fruits, vegetables, spices and seafood products.

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Tarun Sawhney

India is among the world's leading producer of cereals, milk, sugar, fruits, vegetables, spices and seafood products. According to the WTO, it is the top 10th exporter of agricultural products in the world. 

India's current policy largely aims at food security and price stabilisation. At times, it impedes trade and innovation. There is a need to identify commodities that are essential from the food security perspective and barring these, no other produce should be brought under export restrictions. Export restrictions should be ended on processed agricultural products and all kinds of organic products.

The focus should be on developing export-centric clusters. There is a need to develop uniform packaging for organic products, promote 'produce in India' through geographical indication registration and create post-harvest infrastructure support for the smooth logistical movement of agri produce. There is a lot of scope for marine products and processed foods. The cost of transporting products from the hinterland to ports and air cargoes also needs to be rationalised. Besides, major investments are required at the back-end to create infrastructure for global and domestic value-chains that should range from produce aggregation to its sorting, grading, packaging, storing and transporting from the hinterlands to the ports for export markets.

The draft policy rightly identifies the first two steps - categorise commodities where India has a global comparative advantage and develop clusters in states to create global value chains. This new policy would have a positive effect on agri economy and create a better environment for farm export to flourish.


— The writer is Chairman, CII Northern Region Agriculture and Food Processing Committee

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