A heady export initiative
The recent export of dehydrated Mahua flowers from Chhattisgarh to France is much more than a regular export of agri or processed food products. It is significant in many ways.
This is the first time dehydrated Mahua flowers have been sent to France. The flowers were sourced from the forest in the Korba district of Chhattisgarh. The most important aspect is that the export involves the local tribal population who collected the flowers.
This export puts a previously ignored region on the export map, a welcome new direction for India's agri and food exports. The government has given a thrust on promoting export of such products that were not part of exports till now. Mahua is known for the liquor which is brewed locally. It is more than likely that the flowers may re-enter the Indian market in a fancy branded French liquor avatar. Moreover, it is also useful for medicines and syrups.
The Agricultural and Processed Food Products
Export Development Authority (APEDA), recently, also facilitated export of Himalayan goats from Uttarakhand to the United Arab Emirates (UAE). This, too, is sourced from the villages in the hills. It also facilitated export of exotic fruits like Dragon Fruit and also organised export promotion events in Saudi Arabia.
In another development, Poland has shown interest in collaborating with India in various sectors, including food processing. Apples and confectionary products comprise 50 per cent of Poland's agro-processed products export to India.
India is the 17th largest exporter of processed foods in the world with Rs 31,205 crore worth of processed foods export in 2019-20. The exports grew by 25.02 per cent in dollar terms and 29.43 per cent in rupee terms in 2020-21.
The average value of export of processed food is $32.8 billion from 2015-16 to 2019-20. The earnings from exports of APEDA products have increased from an average of $17.8 billion per year from 2015-16 to 201920 to $ 20.65 billion in 2020-21. The share of agricultural and processed food products in India's total exports has been 11 per cent during this period with a much higher share of primary agricultural commodities. This splendid performance is despite the pandemic.
Non-basmati rice export has almost doubled to
13.09 million tonnes in 2020-21 from an average of 6.9 million tonnes in the last five years. It has increased from an average of $2.7 billion to $4.8 billion. However, the export of Basmati rice increased marginally from
4.19 million tonnes to 4.63 million tonnes, increasing the earning from $3.98 billion to $4.02 billion. The government has set the target of $60 billion worth of rice by next year in its 2018 agriculture export policy.
Still, it accounts for even less than only 2 per cent of the total global exports of processed foods. The new trends like the rising export of non-basmati rice and the export of Mahua flowers, shows that the country has a lot of potential to further grow exports of agri produces and processed food products, even with a little value addition.
It is necessary to explore the untapped forest produce like Mahuva to bring them into mainstream exports. This will not only grow the exports but will provide good income to farmers and the tribal community. The 2018 agriculture export policy emphasizes diversifying the export products. In this diversification the till now never thought of products, more varieties like Mahuva, can be identified and sourced. Of course, once their regular export begins their regular supply will have to be ensured, if needed by cultivation. With 5,000 years of traditional medicine and herbal background like Ayurveda, the export of dietary supplements can also be considered by innovating on products.
Envisioning the requirements of the new postCOVID-19 world may also help a lot in the development of export-oriented products. The processing of foods is much less in India which too will have to be increased.
All such efforts will take processed food exports to new heights.