Exporters seek barter deal with agri-deficit nations

Negotiations likely with Japan, EU, US, and South Korea to boost India’s agri exports and balance out their electronics exports into India

Exporters have urged the government to start a barter deal with agriculturedeficit countries to boost India’s exports of agricultural and allied products on a sustained basis.

Faced with restrictions imposed by many countries, India’s exports of agricultural products have declined by 19 per cent in the past four years to $32 billion in 2016-17 from $39.6 billion in 201314. During the same period, however, import of agricultural and allied products has jumped by 66 per cent to $24.2 billion in 2016-17 from $14.6 billion in 2013-14. Thus, India’s trade surplus of $25 billion in 2013-14 has slumped to $7.8 billion in 2016-17.

Experts also say that countries in the European Union (EU), the US, Japan, South Korea, and China are dumping their products such as cars, electronic items and other valuable goods into India without committing to import products in short supply in these countries, of which India is a major producer. For, example, the EU has rejected India’s basmati rice, alleging presence of parts per million levels (ppm) of a pesticide not registered in the EU, exporting a huge quantity of cars and other goods such as chocolates and olives into India.

“So, we need to start barter negotiations with agriculture-deficit countries. If India can import almond from California, the US must import horticulture, dairy and other products from us,” said Rajju Shroff, executive chairman and managing director, UPL Limited.

The Crop Care Federation of India (CCFI), the apex industry body representing manufacturers of pesticides and agrochemicals in India, has submitted a pre-Budget memorandum to the Union products as is done by many countries. finance ministry, seeking immediate “Currently, Indian agriculture is productionattention to increase the country’s agricultural centric. But, India needs to exports. change strategy to make it market-centric,”

“We have been appealing to the government Shroff said, adding that a signal to take measures to arrest the needed to be sent to farmers about steady decline in India’s agricultural which crops they need to sow at the exports and the sharp increase in beginning of the sowing season. imports, which poses a double whammy “In fact, farmers suffer low prices for Indian farmers. While imported agricultural when the output goes up. An informed commodities such as apples, signal about the potential of crops would almonds, kiwi, grapes, wheat and even yield better realisation for farmers and milk products have relatively easy access would also help government reduce to Indian markets, India’s agricultural import of agricultural products. commodities face stiff non-tariff barriers Both Australia and New Zealand have in many developed countries that either directed their farmers not to sow pulses refuse or restrict our agri exports,” said S this year on fear of low imports from Ganesan, advisor, CCFI. India. Farmers require such indications

An innovative plan to immediately before sowing season for crop diversion,” boost India’s agricultural exports is to he said. adopt “preferential imports” of electronics, Meanwhile, the CCFI has urged the machineries, aircrafts, fuels etc. government to help increase export of only from those countries that allow dairy and livestock in the coming years easy access to Indian agricultural commodities. in addition to value-added products, Apart from that, the CCFI has since primary agricultural commodities highlighted the need for aggressive marketing are highly and perishable. branding of agricultural