Model Question and Answers for APSC | Critically discuss opportunities and challenges for India hidden in food export.
Critically discuss opportunities and challenges for India hidden in food export.
Ans: According to data provided by the United States Department of Agriculture (USDA), India’s share in global exports of rice has increased from about 22% in 2018–19 to 40% in 2021–22. In the case of wheat, India’s share now stands at 5% against 0.3% in 2019–20. Equally impressive is the increase in India’s share in sugar exports, which has increased to over 11% as against 3.4% in 2017–18.
- Russia and Ukraine are two of the world's major wheat exporters and account for about a third of global annual wheat sales and 17% of exports of maize and barley.
- The wave of destructive floods that hit China last year during the planting season pushed China from becoming a competitor to India for the time being.
- Many countries have imposed grain export restrictions from their countries, including ○ E.g. Moldova & Hungary have outlawed grain exports. ○ E.g. Egypt has also responded in the same vein by banning exports of wheat, lentils and flour.
- Export-oriented agriculture can help in doubling farmers' income, non-farm rural jobs creation
- Food security: There are fears of a less-than-expected harvest, because of the vagaries of the weather such as excessive rains and severe early summer heat.
- Food Inflation: There is the overriding concern over galloping food prices at home. Food inflation hit a 16-month-high of 68% in March.
- Fertilizer issues: India’s dependency on imports is to the extent of 25% requirement for urea, 90% for phosphates and 100% in the case of potash. Russia and Belarus account for 40% of the world's potash exports.
- Globally, fertiliser prices are already high due to soaring gas If the war gets prolonged, India might face logistical challenges in stepping up exports.
- Exporting huge volumes of cereals involves huge infrastructure like transportation, storage, and ships. There is also the question of higher freight costs.
- The choice of seeds and cultivation practices makes only a select range of Indian crops competitive in the global market.
- Non-tariff barriers: Excessive anti-biotics and fertilizers/pesticides residue in foods rejected by importers
- "wheat-for-fertiliser deals" with countries like Egypt and Africa to balance them both.
- The quality in the Agri production system needs to be strengthened end to end, with quality seeds, cold chain and quality checks
- Improve Supply chain efficiencies: It hurt exports, whether it is transportation bottlenecks, farm gate storage infrastructure, or the facilities and turnaround time at the exit port, These need to be removed step-by-step.
- Diversification of food, cropping pattern Food export promotion agencies can be formed Use international forums to promote Indian Produce.
- Capitalize I2U2 Food corridor initiative, further capture West asian markets