Ministry of Commerce & Industry

Funds to Boost Agriculture Exports

Posted On: 18 SEP 2020

As a part of implementation of the Agriculture Export Policy, a number of States have finalized their respective Action Plans identifying various infrastructure gaps affecting agricultural exports. To address these gaps, the States can avail assistance under the Trade Infrastructure for Export Scheme (TIES) of Department of Commerce and under various existing Schemes of Ministry of Agriculture & Farmers Welfare; Ministry of Fisheries, Animal Husbandry & Dairying; Ministry of Food Processing Industries etc.

The Government has introduced a comprehensive Agriculture Export Policy (AEP) to harness export potential of Indian agriculture and raise farmers’ income. Department of Commerce, has taken several steps to implement AEP at State/ District level. State specific Action Plans, State Level Monitoring Committees (SLMCs), Nodal agencies for agricultural exports and Cluster Level Committees have been formed in a number of States. Country and product-specific action plans also have been formulated to promote exports.  A Farmer Connect Portal has been set up by APEDA for providing a platform for farmers, Farmer-Producer Organizations (FPOs) and cooperatives to interact with exporters. Buyer-seller Meets(BSMs) have been organized in the clusters to provide export-market linkages.

Government of India has promulgated the following three Ordinances to implement reforms in agriculture sector:

i. The Farmers’ Produce Trade and Commerce (Promotion and Facilitation) Ordinance, 2020 provides for the creation of an ecosystem, where the farmers and traders enjoy the freedom of choice relating to sale and purchase of farmers’ produce, which facilitates remunerative prices through competitive alternative trading channels; to promote efficient, transparent and barrier-free inter-state and intra-state trade and commerce of farmers’ produce outside the physical premises of markets or deemed markets notified under various State Agricultural Produce market legislations; to provide a facilitative framework for electronic trading and for matters connected therewith or incidental thereto.

ii. The Farmers (Empowerment and Protection) Agreement on Price Assurance and Farm Services Ordinance, 2020, provides for a national framework on farming agreements that protects and empowers farmers to engage with agri business firms, processers, wholesalers, exporters or large retailers for farm services and sale of future farming produce at a mutually agreed remunerative price framework in a fair and transparent manner and for matters connected therewith or incidental thereto.

iii. The Essential Commodities (Amendment) Ordinance 2020 aims at increasing the competitiveness in the agriculture sector and enhancing the income of the farmer by liberalizing the regulatory system while protecting the interests of consumers. The Ordinance allows the Central Government to regulate the supply of certain food stuffs only under extraordinary circumstances (such as war, famine, extraordinary price rise and natural calamity of grave nature).

This information was given by the Union Minister of Commerce and Industry, Shri Piyush Goyal, in a written reply in the Rajya Sabha today.

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