GTRI says 51.5% agri exports from just 5 products makes sector vulnerable to global prices, demand
sugar and this makes the sector vulnerable to fluctuations in global prices and demand, a report by economic think tank GTRI said on Monday.
The Global Trade Research Initiative (GTRI) said these five products — basmati rice, non-basmati rice, sugar, spices, and oil meals — account for 51.5 per cent of India's total agriculture exports.
Furthermore, India grapples with various domestic challenges including infrastructural deficits, quality control issues, and non-tariff barriers, all of which impede the growth and competitiveness of its agricultural sector, it said.
«This makes them (agri exports) vulnerable to fluctuations in global prices and demand,» it said, adding these commodities also face frequent export bans in India.
At present export of non-basmati rice is currently banned from India and India is also fighting at the WTO (World Trade Organisation) to protect subsidies to rice and wheat under a public stock holding programme.
Besides, certain WTO member countries have taken India to disputes on sugar for providing subsidies to farmers.
«All this makes India's top exports vulnerable and uncertain,» it added.
To deal with the issue, the think tank has suggested the government to focus on areas like modern infrastructure for the sector.
The report said China with higher rice productivity does not encourage export of rice as every kg of rice products can consume up to 80 litres of water.
It also said that in 2023, India's agricultural trade landscape presents a challenging scenario.
With agriculture exports and imports projected to reach USD 43.3 billion and USD 33 billion, respectively, the sector is experiencing a significant downturn compared to the previous year, it added.
«Exports will decline by 7.2
