Agro exports potential

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Student- PGDM (ABM)
At Mitcon Institute of Management,Pune.
Contact No- 7588001528

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Agro exports potential

  1. 1. POTENTIALS AND EMERGING FOCUS AREA FOR AGRICULTURAL EXPORTS
  2. 2. EXPORTS SCENARIO OF INDIA  Current Exports: -US$ 178.7 Billion  Target for current year US$ 200 Billion  Share in World Exports: 1.5%  Ranking in World Exports: 26  Exports as % of GDP : 20%  Employment in exports :175 Million  Exports Target for 2020 : 5% of World Trade
  3. 3. COMPOSITION OF TRADE Commodity %Share  AGRI & ALLIED PRDTS 7.07%  MARINE PRODUCTS 1.17%  ORES & MINERALS 4.88%  LEATHER & MNFRS 1.88%  GEMS & JEWELLERY 16.23%  CHEMICALS & PRDTS 13. 64%  ENGINEERING GOODS 18.31%  ELECTRONICS 3.16%  TEXTILES,CARPTES AND HANDICRAFT 11.23%  COTTON RAW INCL. WASTE 1.15%  PETROLEUM PRODUCTS 15.75%  OTHERS 4.80%
  4. 4. DIRECTION OF TRADE 1) Europe 21.56% EU Countries (27) 20.17% Other WE Countries 1.33% East Europe 0.07% 2) Africa 5.77% Southern Africa 1.85% West Africa 1.76% Central Africa 0.20% East Africa 1.97% 3) America 15.04% North America 11.56% Latin America 3 .48% 4) Asia & ASEAN 53.94% East Asia 0.95% ASEAN 10.12% WANA 22.02% NE Asia 16.11% South Asia 4.73%
  5. 5. DIRECTION OF TRADE(CONTD.) 5) CIS & Baltics 0.94% CARs Countries 0.15% Other CIS Countries 0.79% 6) Other Countries 2.75%
  6. 6. CURRENT SCENARIO OF AGRICULTURE IN INDIA Indian Agriculture has made rapid strides since independence 1) From food shortages and import to self-sufficiency and exports. 2) From subsistence farming to intensive and technology led cultivation. 3) Today , India is the front ranking producer of many crops in the world. 4) Ushered in through the green, white, blue and yellow revolutions
  7. 7. INDIA’S POSITION IN WORLD AGRICULTURE  Parameter Rank in World.  Total Area Seventh  Irrigated Area First  Population Second  Economically Active population Second  Total Cereals Third  Wheat Second  Rice Second  Coarse grains Fourth  Total Pulses First  Oil Seeds Second  Fruits and Vegetables Second  Implements (Tractors) Third  Milk First  Live Stock (castles, Buffaloes) First
  8. 8. INDIAN AGRICULTURE- SOME FACTS Total Geographical Area - 328 million hectares  Net Area sown - 142 million hectares  Gross Cropped Area – 190.8 million hectares  Net Irrigated Area - 56 million hectares  Drought-prone Area - 190 million hectares  Potential for Biological Production - 265 million hectares  Area threatened by land degradation 50% of TGA 2. Major Crop Production (1999-2000)  Rice 89.5 million tonnes  Wheat 75.6 million tonnes  Coarse Cereals 30.5 million tonnes  Pulses 13.4 million tonnes  Oilseeds 20.9 million tonnes  Sugarcane 29.9 million tonnes
  9. 9. MILE STONES IN AGRICULTURAL DEVELOPMENT  Green Revolution (1968)  Ever-Green Revolution (1996)  Blue Revolution (water, fish)  White Revolution (Milk)  Yellow Revolution (flower, edible)  Bio-Technology Revolution  ICT Revolution
  10. 10. DEVELOPMENT OF INDIAN AGRICULTURE : BASIC ISSUES  Revitalization of Cooperative Institutions  Improving Rural Credits  Research, Education & Extension  Human Resources Development  Trade & Export Promotion  Land Reforms  Enabling Environment for higher Agricultural Growth  The thrust areas:  Diversification of Agriculture  Inter-cropping  Micro Management  Water Management  Organic Farming  Agri-Clinics and Agri-business Centres  Bio-Technology
  11. 11. INDIAN AGRICULTURE- SOME FACTS 3. Contributes to 24% of GDP 4. Provides food to 1Billion people 5. Sustains 65% of the population : helps alleviate poverty 6. Produces 51 major Crops 7. Provides Raw Material to Industries 8. Contributes to 1/6th of the export earnings 9. One of the 12 Bio-diversity centers in the world with over 46,000 species of plants and 86,000 species of animals recorded
  12. 12. MAJOR ACHIEVEMENTS India is 1. Largest producer in the world of pulses , tea , and milk 2. Second Largest producer of fruits, vegetables, wheat , rice, groundnut and sugarcane. 3. Indian Agriculture Scenario STRENGTHS WEAKNESS  Rich Bio-diversity Fragmentation of land  Arable land Low Technology Inputs  Climate Unsustainable Water Mangt  Strong and well dispersed Poor Infrastructure research and extension system Low value addition
  13. 13. CONTINUED…  OPPORTUNITIES THREATS Bridgeable yield crops Unsustainable Resource Use Exports Unsustainable Regional Development Agro-based Industry Imports Horticulture Untapped potential in the N.E Current Concerns  Pressure of the Population on Land  Skewed distribution of operational holdings  Land Degradation  Water Balance  Low level of mechanization  Low Fertilizer Consumption
  14. 14. CONTINUED…  India’s competitive advantage - Diverse agro climatic conditions. - Sufficiency of Inputs. - Reasonable labour costs.  Agriculture exports from India account for less than 1% world trade in Agriculture commodities. - Target is to raise India’s share to 2% .  Thrust Areas  Improvement and maintenance of quality.  Consonance with International Standards.  Strengthening of Infrastructure.  Identification of niche products and markets.
  15. 15. TECHNOLOGIES FOR SUSTAINABLE AGRICULTURAL DEVELOPMENT  Biotechnology  Pre & post harvesting technology  Energy saving technology  Environment protection technology  Information and Communication technology  GIS & RS technology  Internet/Intranet Technology
  16. 16. INDIA’S AGRICULTURAL EXPORT POTENTIALS  Marine Products  Rice  Wheat  Condiments and Spuces  Cashew  Tea  Coffee  Castor  Jute  Fruits and Vegetables- Onions, Mango, Grapes, Banana, Tomato , Potato , Lichchi ,etc.
  17. 17. FOOD AND AGRICULTURE- SIGNIFICANT FEATURES 1. High volatility in commodity prices 2. Ban on exports of certain commodities 3. Global economic growth, increasing population in developing countries to drive demand for commodities 4.Food and food security to remain a challenge for developing countries for generations to come 5.Share of natural resources in world trade has risen sharply in recent years 6. Natural resources endowments- blessing or curse?  Blessing- comparative advantage and critical to economic growth,  and curse- trapping them in a state of under- development
  18. 18. CONTINUED… 7. In the 31 block of OECD countries, most distortive form of support still continues 8. 9 years since Doha development round has failed to make a dent on this- subsidies have only gone up 9. The fall in (farm goods) prices at the end of 2008 has led to concerns about the impact of the future market volatility on the ability of producers to expand output, on an environmentally sustainable basis, in response to growing demand ( World Trade Report-2010) 10. In India, the public investment in farm and farm research is abysmally low(0.6% of GDP in 2008-09 vs. 1.4% in 80-81) leading to stagnant growth rate ( 2-3 %) 11. 20% of GDP supports more than half the population
  19. 19. CONTINUED… 12.India grows 12 and 14% of world’s fruits and vegetables respectively whereas the exports are only 1.5% of world’s exports (mainly to west asia and east europe) 13.Wastage around 40% due to lack of post- harvest management techniques 14.The investment in agriculture has stagnated at around 0.6 % of GDP since 1999, whereas, the food subsidy has rocketed from around 9200 crores to around 47000 crores(0.76% of GDP). 15.Export strategy for Mango (India produces 54% of world’s production), Banana including its value added products (India is the largest producer) and Litchi (produced only in Indian sub-continent) required to create a win-win situation. 16.Floriculture- out of US$ 17 billion of world export, India’s
  20. 20. CONTINUED… 17. All this calls for targeted interventions 18. Investments for improvements in pre and post harvest technology and management systems, strengthening the cold chain system, maintaining the quality standards and farmers awareness, R&D, strengthening the role of Agri Export Zones (AEZ) 19.Internal demand has failed to accelerate agriculture income growth 20.FTAs and RTAs for more and diversified market access
  21. 21. Thank you,

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