India Positioned for Significant Growth in Agricultural Exports by 2025: Report
India is set to see substantial growth in its agricultural export sector by 2025, driven by the government’s emphasis on infrastructure development, technological advancements, and initiatives to boost exports, according to a report released on Friday.
New Delhi: India is set to see substantial growth in its agricultural export sector by 2025, driven by the government’s emphasis on infrastructure development, technological advancements, and initiatives to boost exports, according to a report released on Friday.
Table of Contents
Focus on Farmer Producer Organisations (FPOs)
Farmer Producer Organisations (FPOs) have emerged as a crucial tool for enhancing the economic well-being of Indian farmers, particularly smallholders. The report by Praxis Global Alliance highlights how FPOs enable farmers to pool resources, gain collective bargaining power, and access quality inputs at lower costs, while also facilitating market access.
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One of the most successful FPO models in India is Amul, the dairy cooperative that has empowered millions of small farmers by providing fair prices and access to a vast market network.
Akshat Gupta, Practice Leader, Food and Agriculture at Praxis Global Alliance, stated, “Amul serves as a prime example of how FPOs can uplift farmers by creating a direct link between producers and consumers, ensuring fair prices and market access.”
Agriculture’s Role in India’s Economy
Agriculture remains a cornerstone of India’s economy, employing approximately 42% of the population and contributing 18% to the country’s GDP. The sector is poised for significant growth, with India aiming to expand its agricultural exports and improve its competitive edge in the global market.
Infrastructure Investment to Reduce Post-Harvest Losses
The establishment of Mega Food Parks and investments in cold chain infrastructure are key factors that will allow India to reduce post-harvest losses and extend the shelf life of agricultural products. By improving these aspects, India can better access high-value international markets and boost its agricultural export potential.
Drawing Inspiration from Australia’s Agricultural Export Success
Australia’s success in expanding agricultural exports can provide a valuable model for India. The Farm Export Facilitation Program (FEFP) in Australia has improved logistics, established export hubs, and enhanced market access through better trade agreements. Madhur Singhal, Managing Partner, Food and Agriculture at Praxis Global Alliance, suggested that India can replicate this approach by addressing regulatory bottlenecks and enhancing infrastructure support for agricultural exports.
Value-Added Technologies for Increased Exports
Investing in value-added technologies is another strategy that can significantly increase agricultural export revenues. For instance, processing raw milk into products like milk powder, whey protein, and cheese opens up lucrative international markets. Countries such as New Zealand have successfully diversified dairy exports through milk-processing technologies, a strategy India can adopt. Similarly, India can focus on processing high-value crops like fruits into juices and concentrates, producing essential oils from spices, and processing dairy into powders and cheeses for niche export markets.
Role of Private Companies in Boosting Agricultural Competitiveness
Private companies play a pivotal role in improving India’s agricultural competitiveness. By investing in technology and innovation, these companies can help optimize yields, reduce costs, and minimize post-harvest losses. These initiatives are essential for ensuring that India remains competitive in the global agricultural export market.
Optimism for India’s Agricultural Export Future
Looking ahead, the report expresses optimism for the future of India’s agricultural export sector. With the right investments in infrastructure, technology, and regulatory support, India is well-positioned to see significant growth in agricultural exports in the coming years.
