30 Apr Enhancing Agricultural Exports: APEDA conducts a capacity-building programme
This article covers “Daily Current Affairs” and the Topic of Enhancing Agricultural Exports: APEDA conducts a capacity-building programme
SYLLABUS MAPPING:
GS-3-Economy- Enhancing Agricultural Exports: APEDA conducts a capacity-building programme
FOR PRELIMS
What is APEDA? Describe its major functions in promoting agricultural exports.
FOR MAINS
What are the key challenges faced by Indian farmers in accessing global agricultural markets?
Why in the News?
The Agricultural and Processed Food Products Export Development Authority (APEDA), in collaboration with the Government of Odisha, organised a Workshop-cum-Capacity Building Programme on April 25, 2025, at Dr. M.S. Swaminathan Hall, OUAT, Bhubaneswar, to promote agricultural exports from the state. The event featured over 10 stalls set up by Farmer Producer Organisations (FPOs), women agripreneurs, government departments, and exporters, showcasing Odisha’s unique GI-tagged and indigenous agri-products such as Koraput Kalajeera Rice, Kandhamal Haldi, Koraput Coffee, Nayagarh Kanteimundi Brinjal, Kendrapada Rasabali, and Salepur Rasagolla. Addressing the gathering, Deputy Chief Minister and Agriculture Minister Shri Kanak Bardhan Singh Deo highlighted the state’s efforts to promote organic and GI products in international markets and appreciated APEDA’s collaboration.
What is Apeda?
The Agricultural and Processed Food Products Export Development Authority (APEDA) is a statutory body established by the Government of India under the Agricultural and Processed Food Products Export Development Authority Act passed by the Parliament in December 1985. The Act (2 of 1986) came into effect from 13th February, 1986 by a notification issued in the Gazette of India: Extraordinary: Part-II [Sec. 3(ii): 13.2.1986). The Authority replaced the Processed Food Export Promotion Council (PFEPC).
Functions of Apeda
1. Promotion of Agri-Exports: Promotes the export of scheduled agricultural and processed food products like fruits, vegetables, meat, dairy, cereals, pickles, honey, floriculture products, herbal plants, and beverages.
2. Development of Export-Oriented Industries: Supports infrastructure development and modernisation of agri-processing units through financial assistance, surveys, feasibility studies, and subsidy schemes.
3. Registration of Exporters: Registers persons or companies as exporters of scheduled products to regulate and promote formal exports.
4. Standardisation and Quality Control: Fixes standards and specifications for scheduled products to ensure quality exports and to meet international standards.
5. Inspection and Certification: Conducts inspection of meat and meat products at slaughterhouses, processing units, and storage areas to ensure hygiene, safety, and quality.
6. Packaging and Branding Promotion: Encourages development of improved packaging for export items to enhance shelf life, appeal, and international competitiveness.
7. Training and Capacity Building: Organises workshops, seminars, and training sessions for farmers, exporters, and agripreneurs to build export readiness and knowledge.
8. Market Intelligence and Export Promotion: Provides exporters with market intelligence, trends, and promotional support through international fairs, buyer-seller meets, and digital outreach.
Apeda Role Analysis
1. Export Promotion: Promotes exports of agri and processed food products, focusing on diversification and value addition, especially GI-tagged and organic products.
2. Policy Implementation: Implements government schemes under the Ministry of Commerce and aligns with the Agriculture Export Policy (AEP).
3. Market Access: Organises trade fairs, buyer-seller meets, and provides market intelligence to help exporters access global markets.
4. Capacity Building: Trains farmers, FPOs, and exporters on quality standards, certifications, and export procedures.
5. Organic Promotion: Implements the National Programme for Organic Production (NPOP) for organic certification and export support.
6. Infrastructure Development: Supports cold chains, pack houses, and labs to boost export-ready infrastructure.
7. Regulatory Functions: Registers exporters, sets quality standards, and inspects meat and dairy products for export.
8. Partnerships: Collaborates with state governments, SFAC, ICAR, and others for coordinated export development.
Issues in the agricultural export
1. Inadequate Infrastructure Challenge: Poor logistics, lack of cold storage, and insufficient transport networks impact export efficiency. India ranks 44th in the Logistics Performance Index (LPI) 2023, highlighting significant infrastructure bottlenecks.
2. High Export Costs: Exporters face high freight costs, customs duties, and compliance expenses, making Indian agricultural products less competitive. According to the Indian Council for Research on International Economic Relations (ICRIER), India’s logistics cost is approximately 13-15% of GDP, compared to 8-10% in developed countries.
3. Quality Control and Standards Compliance: Meeting international quality standards (e.g., GAP, HACCP) for exports is difficult due to varying global requirements. According to the APEDA, Indian exports of fresh produce like fruits and vegetables face significant rejections due to quality issues, with over 10% of shipments rejected by the European Union in some cases.
4. Limited Market Access: Trade barriers, tariffs, and non-tariff barriers like sanitary and phytosanitary (SPS) restrictions limit access to key international markets. According to the World Trade Organisation (WTO), India faces significant SPS barriers, with 15% of agricultural exports being impacted by such measures.
5. Dependence on Traditional Markets: Indian agricultural exports are heavily dependent on a few markets, primarily the Middle East and Southeast Asia, limiting diversification. In 2020-21, nearly 40% of India’s agricultural exports were directed towards the Middle East and Southeast Asia.
6. Fluctuating Crop Yields: Indian agriculture faces uncertainties due to monsoon dependence, climate change, and pest outbreaks, affecting export consistency. The Ministry of Agriculture reported a 15% decrease in rice exports in 2020-21 due to poor yield caused by erratic monsoon patterns.
7. Lack of Value Addition: Most agricultural exports from India are raw, limiting revenue potential compared to processed goods. India exports over 80% of its agricultural products as raw commodities, while developed countries export more than 70% as processed goods.
8. Regulatory Hurdles and Red Tape: Complicated export regulations, delays in certifications, and multiple approvals increase the time and cost for exporters. A report by APEDA found that 25-30% of export delays are caused by regulatory bottlenecks, such as lengthy certification processes for organic products.
Ways to promote agricultural exports
1. Strengthen Export Infrastructure: Invest in cold chains, pack houses, testing labs, and logistics hubs near farms. Establish dedicated Agri Export Zones (AEZs) and link them to ports.
2. Promote Value Addition: Encourage food processing industries to convert raw produce into high-value products. Provide subsidies and incentives under schemes like PMKSY (Pradhan Mantri Kisan SAMPADA Yojana).
3. Facilitate Organic and GI Product Exports: Promote GI-tagged and organic-certified products through branding and international exhibitions. Strengthen certification and traceability systems under NPOP.
4. Diversify Export Markets: Reduce over-reliance on a few regions by exploring Africa, Latin America, and East Asia. Use trade agreements (e.g., CEPA, FTA) to gain preferential access.
5. Simplify Export Procedures: Digitise certification, customs clearances, and inspection processes. Create a single-window export clearance system for agri-products.
6. Capacity Building for Farmers and FPOs: Train farmers and FPOs in quality standards, post-harvest handling, and global market requirements. Link FPOs with export houses and aggregators.
7. Enhance Market Intelligence and Promotion: Provide real-time data on global demand, prices, and regulations. Organise buyer-seller meets, virtual trade fairs, and reverse buyer missions.
8. Policy and Financial Support: Offer export incentives, credit guarantees, and transport subsidies. Implement the Agriculture Export Policy (AEP) effectively at the state level.
Conclusion
India’s agricultural export potential is immense, owing to its diverse agro-climatic zones, rich biodiversity, and a wide array of GI-tagged and organic products. Institutions like APEDA play a pivotal role in promoting these exports through policy support, infrastructure development, and stakeholder engagement. However, challenges such as inadequate infrastructure, high logistics costs, quality compliance issues, and limited value addition need urgent redressal. Strengthening cold chains, streamlining regulations, diversifying markets, and building farmer capacity are key to making Indian agricultural exports globally competitive. With coordinated efforts between the Centre, States, and organisations like APEDA, India can realise its vision of becoming a global hub for agricultural and processed food exports.
Download Plutus IAS Current Affairs (Eng) 23rd April 2025
Prelims Questions
Q. With reference to the Agricultural and Processed Food Products Export Development Authority (APEDA), consider the following statements:
1.It is a statutory body under the Ministry of Agriculture and Farmers’ Welfare.
2. It promotes the export of scheduled agricultural and processed food products.
3. It is responsible for the implementation of the National Programme for Organic Production (NPOP).
Which of the statements given above is/are correct?
A. 1 and 2 only
B. 2 and 3 only
C. 1 and 3 only
D. 1, 2 and 3
Answer: B
Mains Questions
Q. Discuss the role of the Agricultural and Processed Food Products Export Development Authority (APEDA) in promoting agricultural exports from India. Examine the challenges faced by Indian agri-exports and suggest measures to enhance global competitiveness.
(250 words, 15 marks)
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