India plans to boost exports of foods
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1. Do away with restrictions on exports
2. Actively seek supply pacts with large importers
3. Concentrate on quality -- toxicity, condition, variety, organic
4. Food processing & opening up opportunities in the hinterland
5. Shift to the production of cash crops -- encouraged by enhanced yields and surpluses of major foods
Examples:
1. Policy decision not to impose restrictions willy-nilly as was done on non-basmati rice exports before 2014. Allow exports of pulses.
2. Talks with China to export sugar, rice among others. Export subsidy for some foods.
3. New varieties of mangoes, rice, bananas being marketed or developed for specific regions. Ability to clear the latest toxicity criteria is ongoing and generally successful.
4. Opening new roads in Arunachal or NE is expected to boost domestic availability. Organic produce of NE is likely to have good demand abroad. Significant capacity in food processing and cold-chains are being added.
5 i) Greater allotment of land to cash crops eg Odisha.
ii) Surge in sugarcane & sugar yields in UP, garnering massive exportable surpluses.
iii) Attractive bioethanol policy to mop up sugar surpluses and unwanted crop residue
1. Do away with restrictions on exports
2. Actively seek supply pacts with large importers
3. Concentrate on quality -- toxicity, condition, variety, organic
4. Food processing & opening up opportunities in the hinterland
5. Shift to the production of cash crops -- encouraged by enhanced yields and surpluses of major foods
Examples:
1. Policy decision not to impose restrictions willy-nilly as was done on non-basmati rice exports before 2014. Allow exports of pulses.
2. Talks with China to export sugar, rice among others. Export subsidy for some foods.
3. New varieties of mangoes, rice, bananas being marketed or developed for specific regions. Ability to clear the latest toxicity criteria is ongoing and generally successful.
4. Opening new roads in Arunachal or NE is expected to boost domestic availability. Organic produce of NE is likely to have good demand abroad. Significant capacity in food processing and cold-chains are being added.
5 i) Greater allotment of land to cash crops eg Odisha.
ii) Surge in sugarcane & sugar yields in UP, garnering massive exportable surpluses.
iii) Attractive bioethanol policy to mop up sugar surpluses and unwanted crop residue
iv) Higher growth of fish production, thus creating higher export surpluses, esp in high-value items.
v) Surge in spices production (+55% in 4yrs to 2017/18, by DA method) and yields (+4.1% pa since 2010/11).
vi) Excellent growth in yields of Fruits, Aromatics & Flowers (at 4.3%, 4.0%, 4.1% pa since 2010/11, by DA method); and Vegetables @4.1% pa production growth, are also doing well. Improved horticultural infra (eg covered cultivation & better irrigation, transport links), improved technologies (eg Centres of Excellence with Israel) and better marketing & profitability are contributing.
vii) Improvements in coconut yields in Kerala after years of stagnation, from 7000 nuts/ha to 9333 in 6yrs, through replanting schemes and scientific methods. (Kerala has the largest area wrt coconuts).
viii) Endeavour to ramp up milk production to 9%pa by correcting productivity gap v-v rest of world !!
2. https://economictimes.indiatimes.com/news/economy/foreign-trade/india-itches-for-sugar-export-to-china/articleshow/64413898.cms
3. Comment 3
https://www.thehindubusinessline.com/opinion/toxicity-the-bane-of-our-food-exports/article9909816.ece
4. http://pib.nic.in/newsite/PrintRelease.aspx?relid=179751
5. i) https://www.thehindubusinessline.com/news/national/cash-crop-cultivation-set-to-get-a-boost-in-odisha/article24010916.ece?homepage=true
5. iii) https://swarajyamag.com/insta/govts-sweet-deal-to-sugarcane-farmers-new-ethanol-plans-and-biofuel-policy-announced
5 iv) https://www.financialexpress.com/market/commodities/indias-shrimp-production-may-increase-by-10-in-2018-fao/1193608/
5 v) See comment 1
5 vi) http://pibphoto.nic.in/documents/rlink/2018/may/p201852801.pdf
5. vii) https://www.thehindubusinessline.com/economy/agri-business/kerala-regains-top-slot-in-coconut-production/article9840438.ece
5. viii) https://economictimes.indiatimes.com/news/economy/agriculture/milk-production-to-grow-at-9-per-cent-annually-by-2022-from-6-per-cent-now-radha-mohan-singh/articleshow/64418219.cms
v) Surge in spices production (+55% in 4yrs to 2017/18, by DA method) and yields (+4.1% pa since 2010/11).
vi) Excellent growth in yields of Fruits, Aromatics & Flowers (at 4.3%, 4.0%, 4.1% pa since 2010/11, by DA method); and Vegetables @4.1% pa production growth, are also doing well. Improved horticultural infra (eg covered cultivation & better irrigation, transport links), improved technologies (eg Centres of Excellence with Israel) and better marketing & profitability are contributing.
vii) Improvements in coconut yields in Kerala after years of stagnation, from 7000 nuts/ha to 9333 in 6yrs, through replanting schemes and scientific methods. (Kerala has the largest area wrt coconuts).
viii) Endeavour to ramp up milk production to 9%pa by correcting productivity gap v-v rest of world !!
2. https://economictimes.indiatimes.com/news/economy/foreign-trade/india-itches-for-sugar-export-to-china/articleshow/64413898.cms
3. Comment 3
https://www.thehindubusinessline.com/opinion/toxicity-the-bane-of-our-food-exports/article9909816.ece
4. http://pib.nic.in/newsite/PrintRelease.aspx?relid=179751
5. i) https://www.thehindubusinessline.com/news/national/cash-crop-cultivation-set-to-get-a-boost-in-odisha/article24010916.ece?homepage=true
5. iii) https://swarajyamag.com/insta/govts-sweet-deal-to-sugarcane-farmers-new-ethanol-plans-and-biofuel-policy-announced
5 iv) https://www.financialexpress.com/market/commodities/indias-shrimp-production-may-increase-by-10-in-2018-fao/1193608/
5 v) See comment 1
5 vi) http://pibphoto.nic.in/documents/rlink/2018/may/p201852801.pdf
5. vii) https://www.thehindubusinessline.com/economy/agri-business/kerala-regains-top-slot-in-coconut-production/article9840438.ece
5. viii) https://economictimes.indiatimes.com/news/economy/agriculture/milk-production-to-grow-at-9-per-cent-annually-by-2022-from-6-per-cent-now-radha-mohan-singh/articleshow/64418219.cms
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- Comment 1
Trends in Spice production
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80% of spices follow a predictable growth pattern, growing by around 1.1% above the total spices growth, in over 7 years to 2017/18. Total spices production growth is 7.7% pa and yield growth is 4.1%.
Notice acceleration of growth index from 2014.
https://www.investindia.gov.in/sites/default/files/2018-04/Indian%20Spices%20Industry_Opportunities%20in%20Domestic%20%26%20Global%20Markets.pdf
REPLY 41w - Opinion: waiting for deeper agricultural reforms
(Though reforms are happening, expectations are for transformational change. Can such expectations be fulfilled?
-- what has been the impact of reforms and what should happen next?
-- does govt have the resources, can it do it mostly on its own or will it need greater effort from farmers and private sector?)
Amidst expectations of a magical transformation of the Indian economy, the Narendra Modi government took over the reins in May 2014. During the election campaign, people were led to believe that the Gujarat model of agricultural development, which delivered 8% growth in agriculture during fiscal years 2003-14, would be replicated in the country. Out of the government’s four years, FY15 and FY16 were affected by drought and it did well to manage the crisis. A number of welcome initiatives have been launched in the last four years, including schemes for crop insurance, irrigation, soil testing, electronic national agricultural market (e-NAM), and use of Aadhaar for the public distribution system (PDS) and purchase of fertilizer. While there are several creditable achievements, it is the deeper structural reforms where expectations from a “strong” government have not been met.
Helped by a downturn in the global prices of petroleum and commodities, the government took pro-active measures to rein in food inflation, which was 6.64% during United Progressive Alliance (UPA) I and 12.2% in UPA II. These included the release of wheat and rice from government stocks, restrictions on exports, small increases in minimum support prices (MSP) (except pulses), raids on traders under the Essential Commodities Act, and even income-tax investigations. The states giving a bonus on wheat and paddy were told to discontinue it. In order to reduce excessive procurement of rice, the 50% levy on rice mills was also abolished.
In August 2014, it set up a committee under Shanta Kumar to recommend restructuring of the Food Corporation of India (FCI). This made far-reaching recommendations about agriculture policy, subsidies on food and fertilizers, and the role of FCI. It recommended that coverage of beneficiaries under PDS be reduced from 67% to 40% and cash transfers introduced instead of foodgrains in cities with a population of more than one million. In the case of fertilizers, the committee recommended deregulation and payment of subsidy to farmers through direct benefit transfers (DBT). With the aggressive posturing by the ruling party vis-a-vis the opposition, there was hardly any possibility of opposition-ruled states agreeing to such reforms but the government did not make any serious effort to persuade even the National Democratic Alliance (NDA)-ruled states to go for DBTs for PDS, even in food-surplus regions. Similarly, there was no effort to deregulate urea prices and transfer subsidy to farmers directly. Aadhaar-based sale of foodgrains and fertilizer is only a small step towards reform of the subsidy regime. Similarly, free electricity continues to cause the excessive withdrawal of underground water in several states. No serious effort was made to persuade states to transfer electricity subsidy through DBT.
Sugar is another sector where the government had the benefit of the C. Rangarajan committee report, which had recommended a revenue-sharing formula under which 70-75% of the revenue of sugar mills from sugar and by-products would be shared with farmers. If sugar prices were low, farmers would still be guaranteed fair and remunerative prices (FRPs) fixed by the Centre. If they were high, farmers stood to benefit. But it was possible to build a consensus on this reform only when sugar prices were high. UPA II, towards the end of its term, abolished the 10% levy on sugar and controlled release mechanism under which the Union food ministry decided the quantity of sugar to be sold by each mill every month. At one stroke, the sugar division in the food ministry lost its lordship over sugar mills. It is an irony that there is now a proposal to bring back stock limits on sugar and again allow the government to decide how much sugar a mill can sell each month.
To check food inflation, a price stabilization fund was set up with a corpus of Rs500 crore and onion and potato were bought by the National Agricultural Cooperative Marketing Federation and Small Farmers’ Agribusiness Consortium for release in the market when prices rose. Another successful policy intervention was to offer a handsome increase in the MSP of pulses and create a buffer stock of two million tonnes. Our dependence on imported pulses has almost ended and domestic production has increased from 17.20 million tonnes in FY15 to 24.51 million tonnes in FY18.
The Pradhan Mantri Fasal Bima Yojna was introduced from Kharif 2016. It reduced the farmers’ premium to 1.5% and 2% for Rabi and Kharif crops, respectively, and removed the ceiling on claims to be paid to farmers. Several states have refused to follow the discipline of the scheme and timelines are violated with impunity. Farmers in several states have not been paid their claims long after suffering losses. Many states have not even paid their share of premium subsidy for Kharif 2017. Another major initiative, e-NAM, has the potential of freeing up the agricultural markets. It was expected to bring transparency to auctions in mandis. However, we did not see the real intent of e-NAM being achieved and some states even showed procurement under MSP as e-NAM turnover.
Since 2016, the buzzwords have been doubling farmers’ income. The prices of most crops in mandis have crashed after demonetization and restrictions on trading and transportation of livestock have sharply depressed the prices of livestock, directly hitting farmers’ income.
REPLY 42w - Thanks to a large production base for agriculture commodities, India is among the top 10 WTO members in exports of agriculture commodities. The country has a surplus in food product exports. India’s key export markets include the US, the EU, Asean, Saarc countries and West Asia.
While there is a strong commitment from the Government to promote exports of fresh and processed food products, and a strong willingness on part of the exporters and farmers to export, of late, Indian exports of food products are facing rejections and bans in key markets on grounds of lack of compliance with food safety and health standards.
Products such as mangoes, table grapes, okra, peanuts, curry leaves, chillies, shrimps, prawns, and tamarind have faced rejections and even bans in markets such as the US, Vietnam, EU, Saudi Arabia, Japan and Bhutan due to issues such as presence of higher than approved levels of chemical residues, and pest and bacterial infestation. In the short run, such rejections and bans can lead to financial losses while in the long run, exporters and farmers can lose market share to exporters from other countries, that are able to meet the food safety and health standards of importing countries.
The why of it
A recent study by us (ICRIER Working Paper: 345) showed that Indian agriculture produce face more rejections in key export markets compared to products from other developing countries. Let’s examine one of the largest export markets — the EU, which provides a robust system of reporting the reasons for interception/rejection/withholding of consignments from exporting countries through its risk communication portals — Rapid Alert System for Food and Feed (RASFF) for higher-than-approved levels of chemicals in the produce and European Union Notification System for Plant Health Interceptions (EUROPHYT) for pest infestation.
As shown in the table, between April 1, 2005, and May 31, 2017, Indian exports faced more border rejections compared to exports from countries such as Brazil, and the number of border rejections in proportion to the notifications is highest for India.
Although China has a larger number of notifications than India, its volume of exports to the EU is much higher than India’s. Moreover, severe consequences of these notifications such as destruction of consignment were also the highest in the case of India.
Losing edge
Similarly, according to the EUROPHYT portal’s notifications, between 2005 and 2017 (May 31, 2017), Indian exports faced 1,324 interceptions as compared to 452 for Brazil, 602 for China, 114 for Turkey and 922 for Vietnam. A majority of interceptions for India were raised in the years 2012 and 2013, and these pertained to eggplant, mangoes, snake gourd, bitter gourd and taro ( arabi), among others. This led to a ban on the entry of mangoes and these vegetables.
While the ban was later lifted, Indian exporters lost their market share in products such as eggplant to exporters from countries such as Kenya. Thus, Indian exports are definitely at a disadvantageous position vis-à-vis their competitors from other developing countries in the EU market. In the US too, 1,698 cases of product refusals from India have been reported by the Food and Drug Administration in its Import Refusal Report from 2014 to May 2017, which is also considered to be very high.
While Indian export control and export promotion bodies are trying to implement traceability, laboratory testing and other measures such as hot water treatment for mangoes to reduce the incidence of rejections, some of these are only temporary solutions and may cause product spoilage. To meet food safety and health standards, India needs to implement Good Agriculture Practices and minimise the use of harmful chemicals in the fields. It is important to focus on food quality and standards in the domestic market so that products are produced and processed adhering to international food safety requirements.
Raise the bar
Countries such as Cambodia have used international funding and joint capacity building projects to upgrade domestic standards and implement sustainable agriculture practices for products such as rice. The Government has also supported exports through the right policies. For example, recently Cambodia’s farm ministry announced a ban on all imports and agricultural pesticides containing tricyclazole, after the EU proposed to lower the maximum residue levels. Such proactive measures by the Government have helped the country become a key exporter of rice.
In spite of being a large producer of milk, India is not able to export milk products and ready-to-eat meals such as palak paneer and ethnic sweets. This ‘Make in India’ initiative is not happening as animals are not reared in proper, hygienic conditions with chemical-free feed. India is a ‘high risk’ country in cattle foot-and-mouth disease.
The Government is yet to implement a traceability system for milk and processing conditions are below international norms. In a modern, globalised world, export control reduces the country’s ranking in ease of doing business while traceability improves its acceptability in key markets. Therefore, India should move away from export control to a more scientific system focusing on food safety and health. Such a system can be implemented by FSSAI working closely with the Ministry of Agriculture and Farmer’s Welfare.
Further, with growing consciousness about food safety and health standards even in the domestic market, India needs to focus on food safety and nutritious diet for its own consumers and this will enable to upgrade food safety and health standards from farm to the market.
REPLY 42w - India has signed deals with eight countries, the United States, Canada, Chile, Ecuador, South Korea, Malaysia, Taiwan and Iran for agricultural exports and is scouting for more markets, as it seeks to liberalize trade in farm products and grow its farm exports.
India has also filed market access requests for 35 agricultural products with over a dozen countries, an official familiar with the development said on condition of anonymity.
The country has concluded discussion on phytosanitary certification for Indian mangoes with Iran.
Phytosanitary certification is a formal declaration by an exporting country guaranteeing that shipments are free of pests and plant diseases, and meet the requirements of the importing country.
Similar deals have been signed with Taiwan, which will allow exports of Indian lily bulbs.
Canada has cleared Indian mangoes, grapes, pomegranate, banana, litchi, papaya, custard apple and okra for export. Chile has approved coconut fibre and walnut. South Korea and Malaysia too have agreed to buy Indian mangoes. Equador is the latest country to clear Indian rice.
Read | IMD forecast of normal monsoon may temper economic, political risks
According to a new farm export framework that’s in the works, the government is looking to moderate its strategy of placing frequent restrictions on agri-exports to tame domestic consumer prices.
The plan is to curb commodity exports only in extreme situations and to boost farm income from trade. The government has promised to double farm incomes by 2022.
Agriculture minister Radha Mohan Singh recently tweeted about increasing the value of agricultural exports to $100 billion by 2022-23. The Dalwai Committee Report on doubling farmers’ incomes also talks about freeing up farm exports.
India’s agricultural exports grew five times from about $8.7 billion in 2004-05 to $42.6 billion during 2013-14. This, however, fell to $33 billion in 2016-17. The country’s net exports (i.e. exports minus imports or the agricultural trade surplus) fell to $7.8 billion in 2016-17.
Read | Why a normal monsoon is crucial for the Indian economy, 2019 general election
In 2016-17, marine products, meat and rice together made up 52% of India’s agri-export basket. India also exports spices, cotton, fresh fruits and vegetables, sugar, coffee, groundnut, oilmeals and cashews, which together with marine items, rice and meat comprised over 80% of the agri-export basket in 2016-17. According to farm economist Ashok Gulati, in farm exports, the “biggest hurdle comes from uncertain domestic marketing and trade policies” which he says must be addressed.
New export hubs for horticultural produce – fresh fruits and vegetables – are being opened in smaller cities as part of the strategy to provide direct global access to local farmers. “Trial shipments were recently sent from Varanasi and Guwahati. The Agricultural and Processed Food Products Export Development Authority, in association with our ministry, has identified 70 districts as potential export hubs,” agriculture secretary SK Pattanayak said.
Shipments to Dubai from Varanasi contained chilli from Uttar Pradesh. Pineapples were sent from Guwahati and oranges from Meghalaya and Arunachal Pradesh. Both Varanasi and Guwahati now have complete infrastructure for exports, including phytosanitary certification.
In a boost for mango exports, the US has agreed to transfer requirements of pre-shipment inspection to Indian plant quarantine authorities starting in 2019. The US has also agreed to bear the cost of inspection of mango shipments by US personnel, which will bring down the cost of exports, an agriculture ministry official said.
REPLY 42w - Bhupinder Pal Singh, a farmer from Babain, a village in Haryana’s Kurukshetra district, was unable to sell a third of his 4,400 quintals (1 quintal is a 100 kilogrammes) of potato harvest in May 2017. The unsold produce soon turned into heaps of rotten slush.
Singh says he sold 40 quintals for Rs 2,306 to a local trader, meaning he got Rs 57.65 a quintal. “It was the worst year as long as I can remember,” he says.
The potato crisis of 2017 had to do with a knee-jerk farm trade policy that tends to clamp down on exports at the slightest hint of rising consumer prices. In June 2014, to rein in potato prices, the government imposed a minimum export price on potatoes, put the commodity under the Essential Commodities Act and also allowed duty-free imports. This choked off exports and caused domestic prices to crash amid a potato glut of 48 million tonnes.
To avoid such disasters, India is now looking to set up a national agriculture trade policy, similar to the country’s three-year foreign trade policies. The farm exports policy will be geared towards promoting exports rather than them being used as a tool to control domestic prices, a person familiar with the development said.
Last month, the commerce ministry unveiled a draft national agriculture export policy in step with the government’s target of doubling farmers’ incomes. It has sought to boost agricultural exports from $30 billion currently to nearly $60 billion by 2022.
Consultations among stakeholders, including the agriculture ministry and the Agricultural and Processed Food Products Export Development Authority (APEDA), began this month. Key proposals include ensuring processed agricultural products and all organic produce will be free of export restrictions in future. The agriculture and food ministries will also identify food items which will be permanently free from export controls.
The government may form “a trade perspective over a 5-10 year period” and undertake a “mid-term review of agriculture trade policy...” the official said.
The agriculture ministry, along with APEDA, has identified 50 farm export clusters, the official said. The Centre will soon hold consultations with states to standardise taxes in local markets for export-oriented produce, he said. For instance, local market taxes vary widely for basmati rice, a key export commodity. It is 4% in Punjab and Haryana and 1.6% in Rajasthan. For pulses, the fees are 1% in Maharashtra and 2.5% in UP.
India’s agricultural exports grew five times from about $8.7 billion in 2004-05 to $42.6 billion during 2013-14. This, however, fell to $33 billion in 2016-17. Farm economist Ashok Gulati says knee-jerk export restrictions on food items to prevent domestic inflation have deprived farmers of higher prices in the global market. A paper by Gulati, Infosys chair professor and Shweta Saini, who works with policy think tank ICRIER, analysed 10-year data to show that India’s agri trade policy had a “pro-consumer bias”. The government’s Doubling Farmers’ Income also says India’s exports policy “does not promote agricultural trade but is mainly used to control prices in the domestic market”. According to the new draft policy, a three-year ban on non-basmati rice exports during 2008-11 amid a rice glut led to a “notional loss of $5.6 billion”.
REPLY 42w - Plantations data (till 2nd estimate 2017/18, under DA method)
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Log of Production index (2011 = 0)
Cashew nuts have been the laggard, though its production has grown strongly in 2017 & 2018 (up 10.3%pa) after a fall in 2016. Growth over 3 years from 2015 to 2018 is 3.1% pa.
Cocoa is in pre-blooming phase. A 9% pa growth from 2013 to 2018, though from a low base, is solely due to rising area (actual yield change is 0%pa or less)
Coconut and Arecanut are closely aligned. Most of the "growth" has happened in 2012-13. Since then, growth has been moderate at 2% and 2.9%. The predominant increase since 2011/12 has been due to yield increases.
Correl 62.4% 70.2% 26.3% 59.5% 89.7% 53.2%
Growth 3.6% 4.3% 1.5% 8.1% 5.6% 4.0%
Total P Are+ coc Cashew Cocoa Arecanut Coconut
2011 0.000 0.000 0.000 0.000 0.000 0.000
2012 0.253 0.327 0.071 -0.074 0.354 0.321
2013 0.273 0.341 0.109 -0.074 0.261 0.357
2014 0.254 0.311 0.109 0.115 0.281 0.318
2015 0.244 0.301 0.098 0.193 0.453 0.265
2016 0.258 0.354 -0.022 0.271 0.415 0.341
2017 0.335 0.413 0.110 0.408 0.427 0.411
2018 0.384 0.446 0.212 0.467 0.528 0.428
Actual yields. Only Arecanut and Coconut have good correlations and most of their "yield gains" have been in 2012-13. (Coconut yield is tonnes/ha).
3.7% 0.3% -0.1% 3.4%
Arecanut Cashew Cocoa Coconut
1.195 0.708 0.246 5.717
1.468 0.741 0.206 7.214
1.365 0.759 0.197 7.304
1.376 0.745 0.211 6.968
1.660 0.723 0.205 7.119
1.506 0.648 0.210 7.307
1.589 0.762 0.229 7.918
1.634 0.769 0.220 8.010REPLY 41w - Coconuts have a good market abroad
Exports have fallen back in 2017-18 due to high domestic coconut prices.
https://www.thehindubusinessline.com/economy/agri-business/highnoerno-raw-coconut-prices-shred-exports-ofep-value-added-products/article23828253.ece
India exported coconut products worth Rs 2,300cr in 2016/17. During that year, production of fresh coconuts was valued at Rs 2,395 crore (area = 2.08 mHa & productivity =11,505 nuts /ha). Note that exports were valued as much as total supply of coconuts.
A steep rise in world coconut prices, caused by shortages, led to Indian prices ruling the world. Increased demand has come from new products such as activated charcoal.
Figure is a major increase from last year. Exports in 2015/16 had "touched a new high of Rs 1450.24 crore, which is a rise of around 11 per cent from a year earlier".
Coconuts are exported in various forms eg. activated carbon (a big contributor), desiccated coconut, copra, coconut oil, virgin coconut oil, coir, fresh nuts and coconut water.
REPLY 41w - Honey
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Growth in honey has been 8.1% pa since 2013/4.
MT (metric tonnes)
2014 76
2015 81
2016 88
2017 95
2018 105
REPLY 41w REPLY 41w - Goat farming pdf april 2018 - potential in India
No quick fix to exploit exports potential
Though India is second in goat population, goats are of low weight & reared more for milk rather than meat. Population has declined in 5yrs to 2012, from 141m to 135m. It increased marginally in top goat-rearing states of UP, Bihar & Odisha.
Unorganised sector is concentrated within tribals & BPLs in drought-prone regions. UP farmers are better off (70% BPLs) because they have larger herds, rear good-weight goats and stall-feed the goats. (Farmers choose goat breeds to achieve higher weights). OTOH, Odisha and Bihar farmers are mostly BPLs (90-95%) and eek out poor livelihoods. Goat milk is not well marketed in unorganised sector. Unorganised sector is also not well supported by credit & govt agencies, and goat sales are under-reported in village markets. Farmers don't follow best methods, and middle-men have casual approach to procedures.
There are a number of ways to increase incomes - which are incredibly low -- such as by increasing size of herds, bettering access to support, improving productivity, providing good feeds & rearing commons and improving distribution of goat's milk. It is unlikely that the unorganised sector can realise the potential, though there is scope to increase income levels of farmers X2 to X5.
Institutional rearing of high quality meats and milk is on the rise. Here linkages to premium, urban & export markets can achieve high returns for progressive farmers with advanced methods, or institutional farms with large herds.
Goat farming can come in its own if India is able to provide adequate feed and water to sustain larger herds, and maintain quality if practitioners can stick to well-devised measures. Undoubtedly distribution and marketing can be put in place -- eg. by borrowing expertise in cow & buffalo distribution -- but, infrastructure can only come up if economies of scale & profitability is much higher. Informal and casual approach seems to negate all the good work on quality, All this means is that good-sized producers have to connect directly with large buyers, like food processors, wholesalers, retailers and exporters. Contract farming and strong FPOs may well be the answer.
REPLY 41w - Feed sector growing at 5-7% pa
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Production and availability of animal protein (poultry, eggs, milk, meats, fish) has been rapidly expanding. As a result poultry, cattle and aqua feed sectors are driving growth:
▬ Feed use as follows: poultry (70-75%), aquaculture (10-12%) and dairy cattle (10-15%)
▬ Poultry is growing at over 5-6%pa
✴ Demand-supply gap is widening
▬ Demand may rise to 27-28mT while supply is 21-22mT
▬ India might need to import 0.5mT corn to satisfy higher feed demand
Feed corn usage
Corn and soybean meal dominate the
commercial feed market, supplemented by other coarse grains, spoiled/inferior quality wheat and other oilseed meals (depending on the comparative pricing).
— de-oiled rice bran & broken rice also used
USDA estimates MY 2018/19 corn consumption higher at 26.5 MMT -- with demand coming from poultry feed (~ 60%), starch, and ethanol. Higher domestic demand for corn has supported back-to-back ‘bumper’ production in recent years. Exports are reduced in importance.
Dairy feed trend
Most of the dairy feed supplies (from small operators) are met through farm feed items. But recent trend of maintaining higher yielding cross-bred cows and ‘murrah’ breed buffaloes has increased the commercial dairy feeds demand by about 15% pa, resulting in higher wheat usage for feeds.
— spoiled or inferior wheat (ie. govt procured stock or open market) are used
— tight govt stocks (better management of procurement and release) has reduced govt supply of wheat for animal feeds.
https://gain.fas.usda.gov/Recent%20GAIN%20Publications/Grain%20and%20Feed%20Annual_New%20Delhi_India_3-16-2018.pdf
REPLY 40w - Status of Food Processing initiative
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From Depressed Sector to a Buoyant/ Sunrise Sector
▬> 351% increase in preservation and processing capacity in Mega Food Parks
▬> 720% increase in Cold Storage capacity
▬> 0.49m direct jobs generated
▬> Proposal for Agro Processing Financial Institution by July, 2018
▬> Rs.100k cr MOUs received in last year (and majorly grounded) that will set up further capacity for processing Rs.104k cr agri-products per annum !!
“Food Processing is all set to become the most robust sector in India to contribute majorly to India's growth and the sector is all set to double farmers' income by 2022 as envisioned by the Hon'ble Prime Minister Shri Narendra Modiji”, said Union Minister for Food Processing Industries Smt Harsimrat Kaur Badal, while addressing the media on the achievements of the Ministry during the last 4 years here today.
Smt Badal informed media that four years back when she took over, food processing sector was totally disorganized and the industry was apprehensive of launching new projects or products and committed projects were being delayed and shelved. After four years she has reversed the business environment and turned it into the most buoyant and happening sector.
Minister informed, "from a dismal situation four years back today we have investment commitment of nearly Rs.1,00,000 crores which we got in last one year alone and out of which investment worth Rs.73000 crores have started grounding. This is just tip of the iceberg that shall unleash its real potential in years to come.”
"The last government sanctioned 42 Mega Food Parks from year 2008 onwards and 6 years later when I took over, only two (one of them Patanjali) could get operationalized during 2008 to 2014. I can now proudly say that overall 25 Mega Food Parks would be operationalized by 2018 out of them 15 already been completed so far and 15 more shall be operationalized by 2019” said the minister.
“Four years back industry was apprehensive of the Food Regulator FSSAI and today FSSAI has harmonized itself to world standards. FSSAI has transformed into the most potent and business friendly regulator for those conforming to rules” mentioned the minister.
Government is creating a Cold Chain Grid to link every nook and corner of India by its 42 Mega Food Parks, 234 Cold Chain Projects and around 700 projects under PM Kisan Sampada Yojana. With the schemes of the Ministry, more than 33 lakh farmers shall be directly benefited every year and their number shall keep increasing.
Informing the gathering about a new financial institution Smt Badal said, “We are in the process to create a new Financial Institution that will exclusively fund food processing projects and create capacity building in the field of risk assessment and lending to food processing sector. Request for proposal for the institution which will be called Agro Processing Financial Institution, will be out by July, 2018. It will be a Non-Banking Financial Institution and will be largely driven by private sector and government will act as a facilitator. There is keen interest in the institution by both national and international companies.”
Last four years have witnessed 351% Mega increase in preservation and processing capacity of 15.94 lakh MT per annum created by the Ministry. Big-time increase of 720% in Cold Storage capacity. 180% increase in the value of agro produce processed by the projects handled by the Ministry.
Under the new Scheme Pradhan Mantri Kisan SAMPADA Yojana, total of 122 projects have been approved under three schemes viz. Agro Processing Clusters, Backward-Forward Linkage and Unit scheme leveraging an investment of Rs 2,300 crore. This is expected to generate direct and indirect employment of around 3.4 lakh persons.
The Minister also gave a roundup of investments received since World Food India.
· First ever global investment summit “World Food India 2017” organized from 3-5 November 2017 successfully created ‘Brand India’ putting the country on the global food map by positioning India as a ‘World Food Factory’ which led to MoUs for investment worth $14 billion.
· FDI inflow between April, 2017 & December, 2017 was USD 822 million
· Projects worth $11 billion are already being grounded by over 30 companies.
· Metro Cash & Carry is adding 25 more stores.
· SIAM Makro / CP Wholesale is opening three Big Wholesale stores in New Delhi and one store in NOIDA
· Amazon has opened a total of 67 warehouses in the country so far with 15 stores being opened over last month.
· Grofers has invested in setting up of over 10 vegetable processing centers (Collection centers and Warehouses)
· Over $1billion has already been invested by Coca-Cola, Britannia, Cargill, Tilda Hain, Emami, Keventer Agro, Rich Gravis etc. since World Food India 2017.
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