Unpredictable Farm Export Policy May Affect 112 Districts' Performance: WTC

Centre's restriction on export of primary and processed agriculture commodities such as rice, wheat, semolina, maida and sugar in recent months may affect exports and farm income in 112 districts which are dealing in the shipment of these commodities, said World Trade Center (WTC) Mumbai in a report.

The report stated these export restrictive measures will adversely impact the farm income and export-oriented activities across 112 districts that are cultivating or processing these commodities.

In order to prevent the shortage of essential primary and processed food commodities in the domestic market, the government prohibited or imposed an export duty on the shipment of these commodities in recent months. 

In May, the centre restricted the export of raw, refined and white sugar by requiring exporters to seek permission from the Directorate of Sugar, Union Ministry of Consumer Affairs. 

On September 9, India prohibited the export of broken rice and imposed a duty on export of brown rice and wholly milled rice.

On August 27, India prohibited export of maida, wheat, flour, semolina and wholemeal atta.

In 2018, the union government introduced an Agriculture Export Policy to enhance farm exports from USD 30 billion to more than USD 100 billion in the next few years. 

In 2021-22, India’s export of agriculture and allied commodities stood at USD 50 billion, the report mentioned.

"Out of 11,127 goods exported from India, 1,401 are agriculture and related commodities such as dairy, meat, fish, beverages and other processed goods. These 1,401 agriculture and related commodities are exported by 492 districts across the country," the report stated.

Meanwhile, India is the second largest producer of food grains, fruits, vegetables, pulses, groundnut, sugar and other commodities, it ranks eighth in world export of agro products.