Financial Crisis affects to Agriculture Sector
New Delhi: After rising by more than 40% during 2007-08, the country’s exports of agricultural and processed food could witness a moderate growth in the last financial year.
According to Agricultural and Processed Food Products Export Development Authority (APEDA), the decline in growth in exports is mainly due to demand destruction in the west because of the global financial crisis, appreciation of rupee against the dollar, ban on non-basmati rice export and recurring incidents of bird flu that hurts the poultry sector.
The major decline in exports has been in floriculture, fruits and vegetables and pulses.
Sources said that as per the latest quick official estimate, India has already exported food products worth $ 6,006 million (around Rs 30,000 crore) during April 2008- January2009.
“We are expected to achieve export growth rate of around 15% during 2008-09,” an Agricultural and Processed Food Products Export Development Authority official told FE.
As reported by FE earlier, the quick estimates by APEDA last month had stated that the country had exported Rs 28,447 crore worth of food products during April – December 2008.
In 2007-08, India’s exports of agricultural and processed food products rose to Rs 31,870 crore from Rs 21,805 crore during 2006-07. “We have lost a major portion of export earnings because of the ban on non-basmati rice exports imposed in April,” the APEDA official said.
In 2007-08, India exported Rs 7,396 crore worth of non-basmati rice, 74% more than the previous fiscal.
Besides non-basmati rice, the ban imposed on pulses would also have impacted exports.
Last month, the government extended the ban on export of pulses till March 31, 2009.
The exports have fallen from Rs 773 crore during 2006-07 to Rs 526 crore during 2007-08 mainly due to lifting of ban on export of chickpeas.
APEDA has identifies factors such as small and fragmented farms, lack of synergies among agencies, lack of pre-and post-harvesting management and infrastructure, lack of investment in agriculture, constraints in logistics and market access, which are hampering agricultural products exports. India has only about 1.6% of $750 billion global trade of agricultural processed products like rice, oil meals, marine products, sugar, spices, meat, cereals, tea, cashew etc.
India’s, share in the global trade of agriculture processed products is only about 1.6 %.
Only 15 countries including Saudi Arabia, United Arab Emirates, United Kingdom, Bangladesh, South Africa account for more than 63% of the country’s export of fruits, vegetables and other agric products.
According to Agricultural and Processed Food Products Export Development Authority (APEDA), the decline in growth in exports is mainly due to demand destruction in the west because of the global financial crisis, appreciation of rupee against the dollar, ban on non-basmati rice export and recurring incidents of bird flu that hurts the poultry sector.
The major decline in exports has been in floriculture, fruits and vegetables and pulses.
Sources said that as per the latest quick official estimate, India has already exported food products worth $ 6,006 million (around Rs 30,000 crore) during April 2008- January2009.
“We are expected to achieve export growth rate of around 15% during 2008-09,” an Agricultural and Processed Food Products Export Development Authority official told FE.
As reported by FE earlier, the quick estimates by APEDA last month had stated that the country had exported Rs 28,447 crore worth of food products during April – December 2008.
In 2007-08, India’s exports of agricultural and processed food products rose to Rs 31,870 crore from Rs 21,805 crore during 2006-07. “We have lost a major portion of export earnings because of the ban on non-basmati rice exports imposed in April,” the APEDA official said.
In 2007-08, India exported Rs 7,396 crore worth of non-basmati rice, 74% more than the previous fiscal.
Besides non-basmati rice, the ban imposed on pulses would also have impacted exports.
Last month, the government extended the ban on export of pulses till March 31, 2009.
The exports have fallen from Rs 773 crore during 2006-07 to Rs 526 crore during 2007-08 mainly due to lifting of ban on export of chickpeas.
APEDA has identifies factors such as small and fragmented farms, lack of synergies among agencies, lack of pre-and post-harvesting management and infrastructure, lack of investment in agriculture, constraints in logistics and market access, which are hampering agricultural products exports. India has only about 1.6% of $750 billion global trade of agricultural processed products like rice, oil meals, marine products, sugar, spices, meat, cereals, tea, cashew etc.
India’s, share in the global trade of agriculture processed products is only about 1.6 %.
Only 15 countries including Saudi Arabia, United Arab Emirates, United Kingdom, Bangladesh, South Africa account for more than 63% of the country’s export of fruits, vegetables and other agric products.
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