Press Releases

EXPORTS OF AGRICULTURAL PRODUCTS

Date : 27 Apr 2001 Location : New Delhi

In order to increase agricultural exports further the government has initiated various export promotion schemes and has been providing financial assistance through various Boards and Councils for enhancing production and productivity, preservation of and improvement in quality, development of packaging, improvement of infrastructure and other measures to facilitate exports of all agricultural products to meet the high standards expected in international markets of such products that are traded. In the Export and Import policy announced on 31.03.2001, a new chapter has been added for setting up of Agricultural Export Zones, providing for the facility of duty free import of capital goods, inputs like fertilisers, pesticides, insecticides, packing material etc. This was stated in a written reply by Shri Omar Abdullah, Minister of State for Commerce & Industry, in the Lok Sabha today. At present, import of major agricultural products like wheat, rice, copra, edible oil is allowed only through State Trading Enterprises (STE). Similarly, export of onion, niger seeds, Gum karaya are permitted through STEs. Export of wheat and wheat products, Grain and flour of Barley, Maize, Ragi & Jowar, Sugar, Pure Milk Butter etc. are permitted for export subject to Quantitative ceilings to be released by Directorate General of Foreign Trade. Export of pulses, except those in consumer packs upto 5 kg. is restricted.

Export Products In India export products in India are an immense way to inflate your business and a best way to participate in the global economy. In reality, companies that do business worldwide grow more rapidly and fail less frequently than companies that don't. If you are ready to start import and export products in India and become a part of international trade, then there are a number of government programs to help you get started. Also, there are strict set of laws for top import and exports in India. Top export products in India bring new heights to the trade business, and also contribute in the international trading. However the business of top imports and exports has become one of the newest commercial trends of this decade. According to a survey, American companies trade in over 2.5 trillion dollars a year in commodities, of which small businesses manage over 95 percent. As being the owner of a top import and export products enterprise, you can work as a dispenser by focusing on exporting and importing goods and services that cannot be achieved on national soil (e.g., Russian caviar and French perfumes) or those that are economical when imported from other countries (e.g., Chinese electronics). An Export Management Company can focus in one industry or work with diverse types of import export manufacturers. This is a good selection for products that are assured to sell because of high demand or an established brand name. In contrast to other businesses, though, import export companies have a very small startup cost. The top imports and exports in India have a growing list depending upon the demand and supply of products in the country. While the majority products can be exported without the need for licenses, some specialized products or high-risk items, such as firearms or pharmaceuticals, may necessitate special government permits. If that's the case, costs may run significantly higher. Many top import and export products in India are regulated by centralized agencies. If you import or export some specific types of products, you may be required to obtain specific licenses and permits or complete supplementary paperwork. These top imports and exports in India include products like: Agricultural products Automobiles Chemicals Food and beverage products Industrial goods Pharmaceuticals and biotechnology Defense products, etc Top import and export products in India :

Living animals, milk products, wheat, rice, coffee, tea, spices, cumin seed, tamarind powder, sesame seed, sugar, henna, herbal extract, medicines, fertilizers, chemicals, salt, iron ores, minerals, books, leather products, textile, dyes and pigments, home furnishing, footwear, brass items, Aluminium items, sanitary wear, ceramic, glassware, flanges, fittings, embroidered and Zari items, pipe and pipe fittings, handicraft, cables, medical disposables, laboratory equipments, surgical equipments, sports goods, wooden furniture and various other engineering and electrical products. The mounting expenditures of the core income sections of the society have resulted in the imports of the country. The chief items of imports are: Cereals and preparations, Fertilizers, Edible Oil, Sugar, Pulp and waste paper, Paper, Newsprint, Crude rubber, Non-ferrous Metals, Metalliferrous ores and metal scrap, Iron and Steel, Crude Petroleum and petroleum products, Pearls, Precious and SemiPrecious stones, Machinery, Project Goods, Pulses, Coal and its derivatives, Nonmetallic, Organic & Inorganic chemicals, Dyeing, tanning material, Medicinal products and Pharma products, Artificial resins, yarn & fabrics(silk, cotton, wool), electronic goods, wood and wood products, gold and silver, essential oils, computer software, etc

India is one of the biggest producer and exporter of agricultural products in world. It ranks first in the production and export of many commodities while is in top 5 for most of the agricultural products. Despite of its huge population, the country has the potential of feeding its own people as well supplying the goods to the overseas markets. There are many products for which the world has to depend largely upon India only for its supply. The below are the few of the main agricultural export products from India to world market: Oilmeals: India is one of the biggest supplier of Oilmeals majority of which forms feed meals to international buyers esp. far east region. Soybean meal has the largest share in feed meal exports followed by rapeseed meal. Rice bran meal and peanut meal too are exported in limited quantities while sunflower meal and safflower meal has negligible overseas markets. But cottonseed oilcake and mustard seed oilcakes have few buyers in Asian region. The majority of sbm export is to South East Asia, Taiwan, China, Japan, South Korea etc. The main competitors are Argentina, Brazil and USA. The biggest market for rapeseed meal is Bangladesh besides other Asian countries. For peanut China, Thailand are main markets whereas Rice bran meal mainly goes to Vietnam only. Castor meal which is not feed meal is used as organic manure and mainly exported to Asian countries. Fresh fruits and Vegetables: FFV are one of the major foreign exchange earners for India. The country is known for its various varieties of fruits and vegetables ranking second in the world and producing 16% of the world production. Alphonso being the king of mango is exported to all the places of the world. Indian onions too have big market in Gulf and Europe while grapes of high quality and sweet tart taste are also preferred in these regions. The are many more vegetables like ladyfinger, potato, tomato, peas, cauliflower, cabbage. garlic etc. and fruits like Apple, Apricot, Guava, Litchi, papaya, pomegranates, watermelons etc. are also supplied in the

international market. Walnut is also one of the main item of export from the country. Oilseeds: The major oilseeds exported from India are Sesame seed, Peanut / Groundnut (shelled and unshelled), sunflower, safflower, soybean, mustard, niger etc. Soybean is one of the most important oilseed grown in the country but its exported is limited as it is mainly used for crushing to obtain oil and meal. Mustard seed rapeseed exports too is also on the lower side as used mainly for obtaining oil and meal. Peanut is one of the very important commercial crop grown mainly in Western region of the country and export to gulf, far east asia and E.U. Sesame seed finds its markets mainly in US, E.U. and Middle east and is widely used for bakery purpose. In gulf it is known to use in making tahini. Castor seed is supplied in limited quantities to US and Taiwan whereas Niger seeds finds its major buyer in US. The sunflower and safflower seeds are mainly exported to the Europe and Asian region as used mainly as bird seeds alongwith niger in bird feeders. Spices: India is known for its spices worldwide and the most preferred origin worldwide. There many varieties of spices grown in India and the exports of them is increasing day by day as consumers prefer Indian origin even at higher prices. India is not only exports whole spices but also in other forms like powder, oleosorins, spices in brine, blends, essential oil, de-hydrated spices etc. The major spice exports is of black pepper, cumin seed - jeera, turmeric, coriander seed, fennel seed, fenugreek seed, aniseed, tamarind, chilli, ajwainseed, caraway, cardamom, mace, nutmeg, vanilla, dill seed, garlic, kokam, poppy, cinnamon etc. Among these, pepper and jeera form the major spice exports to Gulf, U.S., E.U. and Asian region. The exports of other spices is also on the increase and among this vanilla is one of the most important as its demand is growing and it fetches good price for the farmers in international market. Rice: India is the second largest producer of Rice in the world and largest producer of Basmati Rice. Though the nation itself is having huge local demand the production is good enough to meet its local

requirements and can export the surplus rice. But during last one year due to shortage of wheat in the country and rice in international market, India has stopped supplying significantly to the world market. The country is also the biggest producer and exporter of Basmati Rice with Pakistan being its only competitor. Indian origin is preferred due to its taste and aroma which has no match with other premium varieties. Generally, Africa and Asia are the major market for export of non-basmati varieties of Rice. But for Basmati quality Saudi Arabia is the biggest importer followed by Kuwait. UAE, US, EU, Australia etc. are the other major buyers for this premium variety. Processed food Products: The major products of export are mango pulp, guava pulp, other fruit pulps, dehydrated products like dehydrated onions, garlics, etc. The pickles also have good markets in Europe and US. Jams, Jellies, fruit and vegetable juices, snack items, flours, cocoa, jaggery exports are also growing year over year. At present India is also pushing the Ready to Eat food products and Heat and Eat types also in International market which has big demand like frozen samosas, varied Indian vegetables in almost ready to eat packs etc. Miscellaneous Products: Indian agricultural export basket is enormous and growing only year after year with the help of the government as majority of the population has dependence on agriculture so for the upliftment of these farmers and labourers, increasing export opportunities of agri produce is very important for them to get the good realisation. There are many crops in the country which are mainly grown as they have vast export demand and fetch good prices in international market. Castor oil has many industrial uses and also used for medicinal purposes, exported mainly to US, Europe and Asian countries. Guar gum powder which too has many industrial used finds big buyers in US, China and EU. Other major agricultural export products from India includes Mentha oil, maize (corn), barley, sorghum, millet, tea, coffee etc In order to increase agricultural exports from India, the government has initiated various export promotion schemes and has been

providing financial assistance through various Boards and Councils for enhancing production, productivity, quality, development of packaging, improvement of infrastructure and other measures to facilitate easy exports of all agricultural products to meet the high standards as per international markets of such agri products that are traded.

Export of Agricultural Products in INDIA

Since Independence, India has made a lot of progress in agriculture in terms of growth in output, yields and area under crops. It has gone through a Green Revolution (food grains), a White Revolution (milk), a Yellow Revolution (oilseeds) and a Blue Revolution (aquaculture). Today, India is one of the largest producers of milk, fruits, cashew nuts, coconuts and tea in the world. It is also well known for the production of wheat, vegetables, sugar, fish, tobacco and rice.

Certain types of agriculture such as horticulture, organic farming, floriculture, genetic engineering, packaging and food processing have the potential to see a surge in revenues through exports. Over the past few years, the government has stressed on the development of horticulture and floriculture by creating vital infrastructure for cold storage, refrigerated transportation, packaging, processing and quality control. If India wishes to optimize the production and export potential of these commodities, then it is essential to improve these facilities, marketing and export networks much further. In recent years, the Central Government has offered different fiscal incentives for bettering storage facilities in rural areas. It also provides financial assistance to the State Governments for acquiring and distributing food grains at subsidized rates, especially to families with annual income below the poverty line. Today, the improved availability of bank credit through priority lending, favourable terms of trade and liberalized domestic and external trade for agricultural commodities have also encouraged private players to invest in agriculture. The major thrust of the policies and programmes of the Government of India relating to livestock and fisheries is in the areas of rapid genetic upgradation of milch animals, improvement in the delivery mechanism of breeding inputs, control of animal diseases, creation of disease free zones, increased availability of nutritious feed, development of dairy activities and backyard poultry, development of processing and marketing facilities and enhancement of production and profitability of livestock. Agricultural Exports

Agricultural exports have shown an increase (External website that opens in a new window) from around Rs. 60 billion in 1990 - 91 to Rs. 398 billion in 2005-06. The Government's special efforts to encourage export of food grains in recent year or WTO compatible subsidies has lead to India becoming one of the leading exporters of food grains in the international market

Export Market: Organic agricultural export market is one of the major drivers of greening of agriculture in India. The current production of organic crops is around 14,000 tons (Garibay S V and Jyoti K, 2003). Out of this production, tea and rice contributes around 24% each, fruits and vegetables combine makes 17% of this total production. From India around 11,925 tons of organic product is exported, that makes around 85% of total organic crop production. Major export market for Indian producers are Australia, Belgium, Canada, France, Germany, Italy, Japan, Netherlands, Sweden, Singapore, South Africa, Saudi Arabia, UAE, UK, and USA. Estimated quantity of various products that are exported from India in 2002 is shown in Table 5.This shows that around 3000 tons of tea was exported and in quantity term it was the highest, next major exports are rice (2500 tons), fruits & vegetables (1800 tons), cotton (1200 tons) and wheat (1150 tons) (Garibay S V and Jyoti K, 2003). Table: 5 Major organic products exported from India Product Tea Coffee Spices Rice Wheat Pulses Oil Seeds Fruits & Vegetables Cashew Nut Cotton Herbal Products Total
Source: Org-Marg, 2002

Sales (Tons) 3000 550 700 2500 1150 300 100 1800 375 1200 250 11,925

The burgeoning US and European green markets provides enormous scope for Indian exporters. International Trade Centres (ITC) overview of estimation of organic food world-wide shows that there is strong growth in retail sales from US $ 10 billion in 1997 to US$ 17.5 billion in 2000 and about US$ 21 billion in 2001 (in 16 European countries, USA and Japan). If the demand of so called green product in Japan that is not certified as organic product is excluded. from total estimation, than also it is US$ 16 billion for 2999 and reached around US$ 19.

SOME PRODUCE EXPORTS HIT ZERO / EXPORTS OF AGRICULTURAL GOODS PLUMMET FOLLOWING NCRISIS

Some farm products such as strawberries, tomatoes and lettuce were not exported at all in May, according to foreign trade statistics, apparently due to concerns over the crisis at Tokyo Electric Power Co.'s Fukushima No. 1 nuclear power plant. Japanese farm products are popular in Europe, the United States and Asia. The recent statistics shows that those products are suffering serious losses due to fears about nuclear contamination.

According to statistics released by the Finance Ministry, the volume of strawberries exported was 30,267 kilograms in February and 19,262 kilograms in March. The numbers declined sharply to 419 kilograms in April--a 94 percent drop from the same month last year--and to zero in May. Strawberries are produced mainly in Tochigi, Fukuoka and Kumamoto prefectures and sent mostly to Hong Kong, Taiwan and Singapore. Monthly strawberry exports through March had enjoyed levels higher than those of last year, but the nuclear crisis halted the upward trend. No tomatoes or lettuce were exported in May, while 1,417 kilograms of tomatoes and 8,976 kilograms of lettuce were shipped abroad in May last year. Apple exports, of which Aomori Prefecture is the nation's top producer, declined in April by 86 percent from the same month last year to 106,493 kilograms. The volume also dropped by 89 percent in May compared to last year. The amount of exports in May was 25,748 kilograms.