Government Initiatives Supporting Farmers to Export Agricultural Products
Introduction
India is one of the world’s largest agricultural producers, contributing significantly to global food security. However, despite its vast agricultural output, Indian farmers often face numerous challenges when exporting their products. To bridge this gap, the Indian government has introduced several initiatives, schemes, and policies to empower farmers and agribusinesses to export agricultural products efficiently and profitably.
This article explores key government initiatives, policies, and incentives that support Indian farmers in exporting their agricultural products and how they can benefit from them.
Why Exporting Agricultural Products is Important?
Agricultural exports play a crucial role in:
- Boosting farmers’ income through higher market prices.
- Strengthening India’s economy by increasing foreign exchange earnings.
- Diversifying risks by reducing dependence on domestic markets.
- Improving product quality through adherence to international standards.
Key Government Schemes & Policies Supporting Agricultural Exports
1. Agriculture Export Policy, 2018
The Agriculture Export Policy (AEP), 2018 aims to increase India’s agricultural exports to $60 billion by 2022 and further grow the sector.
Key Features:
- Removal of export restrictions on organic and processed agricultural products.
- Identification of clusters to promote export-oriented farming (e.g., mangoes from Maharashtra, spices from Kerala).
- Focus on value addition and processing to enhance competitiveness.
- Setting up Export Promotion Forums for key agricultural commodities.
How Farmers Can Benefit:
- Improved market access for their products in global markets.
- Better price realization through international trade.
- Government support for infrastructure, cold storage, and processing units.
2. APEDA (Agricultural and Processed Food Products Export Development Authority)
APEDA is a government body that promotes the export of agricultural and processed food products under the Ministry of Commerce and Industry.
Services Provided:
- Financial assistance for certifications, quality testing, and packaging.
- Support in brand promotion and participation in global trade fairs.
- Training programs on export regulations, food safety, and logistics.
How Farmers Can Benefit:
- Farmers can register with APEDA to receive financial assistance and access export markets.
- APEDA assists in certification processes (like organic certification) to meet global quality standards.
3. Market Access Initiative (MAI) Scheme
The Market Access Initiative (MAI) is designed to support agricultural exporters in exploring new international markets.
Key Features:
- Subsidies for branding and marketing agricultural products.
- Funding for participation in global trade fairs and exhibitions.
- Financial support for research on export market trends and demand.
How Farmers Can Benefit:
- Farmers and agribusinesses can expand to new global markets.
- Government assistance helps in reducing the cost of market research and promotions.
4. National Programme for Organic Production (NPOP)
Organic products are in high demand globally. The NPOP facilitates organic certification and promotes the export of organic agricultural products.
Key Features:
- Establishes organic farming certification standards aligned with international requirements.
- Financial support for organic farmers and certification bodies.
- Strengthens organic product branding in global markets.
How Farmers Can Benefit:
- Farmers producing organic crops can export at premium prices.
- Certification under NPOP helps in meeting international organic standards.
5. Remission of Duties and Taxes on Exported Products (RoDTEP)
The RoDTEP scheme ensures full refunds of taxes and duties imposed on exported agricultural products.
Key Features:
- Refunds state and central taxes such as electricity duties, fuel charges, and VAT on fertilizers.
- Boosts price competitiveness of Indian farm products in global markets.
How Farmers Can Benefit:
- Farmers and exporters receive higher net earnings due to tax refunds.
- Helps in reducing overall export costs, making Indian products more competitive internationally.
6. Krishi Udan Scheme
Launched by the Ministry of Civil Aviation, Krishi Udan helps farmers in remote areas transport perishable agricultural products quickly.
Key Features:
- Subsidized air freight charges for agricultural products.
- Focus on horticultural and perishable goods.
- Increases accessibility to distant and international markets.
How Farmers Can Benefit:
- Farmers can export fresh fruits, vegetables, and dairy products faster.
- Reduced transportation costs increase profitability and competitiveness.
How Farmers Can Start Exporting Their Agricultural Products
Step 1: Register as an Exporter
- Register with APEDA for agricultural product exports.
- Obtain an Import-Export Code (IEC) from the Directorate General of Foreign Trade (DGFT).
Step 2: Get Necessary Certifications
- Apply for FSSAI, NPOP (for organic produce), and other relevant quality certifications.
- Ensure compliance with international food safety standards.
Step 3: Find Export Markets
- Use government trade promotion programs.
- Participate in APEDA’s trade fairs and B2B meetings.
- Connect with global importers via online marketplaces.
Step 4: Leverage Government Subsidies & Incentives
- Apply for financial assistance through Market Access Initiative (MAI).
- Utilize RoDTEP benefits for tax exemptions.
- Seek funding for cold storage, warehousing, and logistics improvements.
Challenges Faced by Farmers in Exporting Agricultural Products
Despite these government initiatives, Indian farmers still face challenges such as:
- Lack of awareness about export policies and schemes.
- Complex certification processes for meeting international standards.
- Infrastructure gaps, especially in cold chain logistics.
- Price fluctuations and competition from other countries.
To overcome these challenges, farmers must stay informed, seek government support, and adopt advanced post-harvest technologies.
Conclusion
The Indian government has taken significant steps to promote agricultural exports through various schemes, subsidies, and infrastructure improvements. By utilizing these opportunities, farmers can expand their market reach, increase earnings, and improve their agricultural practices.
For farmers looking to export their products, registering with APEDA, obtaining necessary certifications, and using financial assistance schemes can be the key to success in global markets
