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To augment value-added food export, APEDA contemplating strategy paper
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Friday, 23 January, 2015, 08 : 00 AM [IST]
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Ashwani Maindola, New Delhi
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fiogf49gjkf0d The Agriculture and Processed Export Development Authority (APEDA) would contemplate a strategy paper on augmenting the export of value-added products from India to be prepared by an external agency, following a study to gauge the possibility of further encouraging and enhancing the export of the same and processed foods from India.
The study is jointly being promoted by the authority and the ministry of food processing industries (MoFPI). According to APEDA, the paper would be ready in 45 days from the date of awarding a contract to the agency. The officials hoped that the study would be ready for implementation in the next financial year (starting from April 2015), with the necessary budgetary allocations in place.
Speaking to FnB News, Santosh Sarangi, chairman, APEDA, said, “We expect the study to get completed by April this year. An advertisement was released earlier in January in this regard. The study would be identifying the scalable processed foods that APEDA already has on its catalogue.”
The authority added, “India, with a large and diverse agriculture, is among the world’s leading producers of agro products such as cereals, milk, sugar, fruits and vegetables. Therefore, agro exports is a key area of focus.”
The proposed study would analyse the export trend of value-added/processed agro products from India over the last five years, and identify at least ten value-added/processed agro products with huge export potential in view of the global demand and revealed comparative advantage (RCA) for India.
The identification of products would be solely on the basis of the export potential and the feasibility of scaling up Indian exports in the global market.
The study would also analyse the factors for RCA for identified products and examine the global market trends to arrive at export projections for these products over the next five years.
The study would make a comparative analysis of the major exporting countries for the identified products and describe their competitive advantages vis-a-vis India.
Identifying the possible challenges for these products, including the gaps in production, the availability of raw materials, the technology used, the productivity levels and the quality standards, would be another area for the strategy paper to look.
The study would also suggest an action plan for meeting the possible challenges to growth and export potential for these products, including the measures for ensuring the availability of raw materials, the induction of modern technology in both production and processing, and meeting the quality and safety standards of the global market, etc.
In addition, the study would suggest a package of possible incentives by the government agencies, including fiscal concessions and the creation of common infrastructure facilities, to implement the action plan to help and meet the export projections for these products.
To further enhance the opportunity of scaling up the exports of such products, the strategy paper would also study the supply chains of identified products in some of competing countries and suggest models for adoption by states in India.
Lastly, the paper would also study the sanitary and pyhto-sanitary and other quality requirements of the target markets and need of infrastructure for growers and processors to address these requirements, along with studying goods and service tax (GST) and other preferential duties applicable for the export of identified value-added/processed products in the target markets and suggestions for the government for taking up the issues with trade partners’ regional trade agreements (RTA) and free trade agreements (FTA).
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