Agricultural and Processed Food Products Export Development Authority (APEDA)
Established in 1985 by the Government of India. APEDA is entrusted with export promotion and development of target products
Fruits, vegetables and their products, meat and meat products, poultry and poultry products, dairy products, confectionery, cookies and baked goods, honey, palm sugar and sugar products, cocoa and its products, chocolate of all kinds, alcoholic and non-alcoholic beverages, cereals and cereal products, peanuts, groundnuts and walnuts, pickles, papad and chutneys, guar gum, floriculture and its products, herbs and medicinal plants. To increase exports of Indian horticulture products, APEDA regularly interacts with Indian horticulture products.
Exporters through various forums and outreach programs. In these programs, exporters have raised their concerns over the supply chain of agricultural products. Taking into account the concerns of exporters, APEDA has appointed Yes Bank Ltd to conduct a study on “Difficulties faced by exporters in the supply chain of agricultural products”.
Objectives
The primary objective of this study was to identify the problems faced by exporters in major export categories such as fresh fruits and vegetables, processed foods, animal products, grains, floriculture (fresh and dried flowers), and organic products, and to recommend solutions to overcome these issues.
The main components of the report are: 1. Identify the major challenges faced by exporters including logistics, infrastructure, policy, research and development, market facilitation, and administrative issues. 2. Recommendations and strategies to overcome the identified challenges 3. Strengthening of value chain and preventive measures against recurrence. Methodology and Approach
The study covered major export categories including fresh fruits and vegetables, processed foods, animal products, grains, floriculture (fresh and dried flowers) and organic products in four regions of the country; North, South, East and West as per the terms of the contract.
We had adopted a mixed approach; h. Combination of secondary and primary research to achieve the desired objectives of the study. Secondary research was conducted based on publicly available qualitative/quantitative data, records, documents and information. As part of the primary research, the team conducted in-depth stakeholder consultations and one-on-one interviews with identified stakeholders/stakeholders using structured questionnaires and interview guidelines. The survey involved over 100 stakeholders.
Value chain (exporters from all categories surveyed, industry associations, DGFT, IIP, ECGC, EIC, CONCOR, EXIM Bank and research and educational institutes. World Trade in APEDA Products2 Approx. US$ 0.86 trillion (2014) Accounts for about 50% of total agricultural trade. Does not include tea, coffee, cotton, non-organic sugar, non-organic oils etc.
The 15 most important commodities include alcoholic beverages, dairy products (fresh produce). Butter, butter oil, skimmed milk powder, ghee, etc.), various preparations (soups, concentrated soft drinks, sauces, ketchup, etc.), other fresh fruits (bananas, guavas, citrus fruits, melons, berries, etc.), other processed fruits and vegetables (fruit juices, nuts, etc.), cereal preparations (cookies, corn flakes, bread, pasta, etc.), other fresh vegetables (cabbage, okra, cauliflower, brinjal, etc.), cocoa products (beans, powder, skin, butter fats, etc.), other meat (horse, pork, fresh and frozen rabbit, etc.), buffalo meat, wheat, maize, poultry products, palm sugar and confectionery Floriculture accounts for about 88% of total world exports.
Some of the most important APEDA products. India’s share of major raw materials traded worldwide is very small, in most cases less than 1% of commodities. However, given the strength of its manufacturing sector, India’s export growth potential lies mainly in fresh fruits/vegetables, meat, processed foods and floriculture sectors.
Indian Trade Agricultural exports account for 10% of the country’s exports and are the fourth largest export item3. India exported around 20 million tonnes of agricultural commodities worth around $16.2 billion in 2015-16. Agricultural exports grew around 10% in terms of value and volume from 2010-11. The top 10 commodities include buffalo meat, basmati rice, non-basmati rice, peanuts, cereal preparations (cookies, noodles, cornflakes etc.), guar gum, other processed fruits and vegetables (juices, jams, jellies etc.) and fresh foods.
Onions, other prepared dishes (sauces, ketchup, dry soups etc.), other fresh vegetables (potatoes, tomatoes, cabbage, cauliflower etc.) account for around 80% of the total exports (of APEDA products), along with buffalo meat, while the contribution shares of basmati rice and non-basmati rice are 25%, 21% and 14% respectively (in value terms). Finally, in the last five years, categories such as buffalo meat, non-basmati rice, cereal preparations, other processed fruits and vegetables, various preparations showed significant growth in value terms.
The main export categories are cereals, fresh fruits and vegetables, processed foods, animal products, and floriculture. The share of cereals in both export volume and value is the largest. The following chart shows the share of the most important categories in exports. The fastest growing categories in terms of volume (2011-2016) were casein (48%), milled products (19%), mutton/goat meat (14%), cocoa (14%) and non-basmati rice (10%). ). The export volumes of peanuts, guar gum, new onions and other fresh vegetables have been declining over the years. The fastest growing categories in terms of value (2011-16) were cocoa products (39%), casein (34%), mutton/goat meat (19%), palm sugar and confectionery (19%) and milled products (17%). %). Guar gum and peanuts recorded negative growth.
The figures clearly show that animal products have increased substantially in terms of volume and value. Animal products should be one of the focus areas for increasing the country’s export earnings. India exports agricultural products and processed food products to around 200 countries. The top five destinations for India’s agricultural exports (Vietnam, Saudi Arabia, UAE, USA and Malaysia) account for around 80% of India’s exports.
The graph below shows the share of major countries in India’s agricultural products (APEDA products). Analysis of Key Challenges in Agricultural Exports Recommendations to Strengthen Supply Chain. Agriculture plays a vital role in the Indian economy. Over 58%4rural households depend on agriculture as their primary source of income.
Along with fisheries and forestry, agriculture is one of the largest contributors to the Gross Domestic Product (GDP). After Central Statistics Office (CSO) estimated the share of agriculture and allied sectors (including agriculture, animal husbandry, forestry and fisheries) at 15.35% of Gross Value Added (GVA) in 2015-16 at 2011-12 prices. Agricultural exports account for 10%5 of the country’s exports, ranking fourth. Exporting flagship products.
India’s agriculture industry is divided into several sub-segments, from canned, dairy, processed and frozen foods to seafood, meat, poultry and grains. However, India’s share in world trade is just under 2%6. To achieve its true potential and export a large portion of what is produced in India, export issues need to be addressed immediately. In the next section, we focus on the challenges facing Indian exports and possible solutions to them.
