The Parliamentary Standing Committee on Commerce has underlined the need to increase the export of agricultural products by improving supply chain, value addition and developing infrastructure. It has also recommended more support and incentives to growers for scientific production of farm commodities to boost quality production and thereby give an impetus to exports.

Committee Chairman V. Vijayasai Reddy submitted the 154th report on exports of agriculture, marine, plantation, coir and turmeric products to Rajya Sabha Chairman and Vice-President M. Venkaiah Naidu in New Delhi on Wednesday.

Proactive measures

The panel found that the share of export of agricultural commodities as compared to their total production was low with wheat occupying a mere 0.2% of production, pulses 1.2% and fruits 1.3%. It recommended proactive measures towards market exploration of new emerging trade destinations of Egypt, Mexico, Malaysia, Indonesia and the Philippines for the export of Indian rice.

The committee expressed optimism that the comprehensive Agriculture Export Policy (AEP) would help double the income of farmers by facilitating them to engage in export activities. It noted that there was a considerable decline in marine exports since 2017-18. The trajectory of growth followed a steady path from 2010-11 to 2014-15, with a significant fall in 2015-16.

The committee recommended regulation and administration by the Department on over-usage of antibiotics and adequate extension services and package of practices to farmers to educate them on use of antibiotics in a judicious manner. The other recommendations include undertaking of research on quality and yield of marine products and exploring export potential in tuna fish by devising a scheme in consultation with Central Institute of Fisheries Technology (CIFT).

India produces about 800 million kg of various types of tobacco every year out of which Flue Cured Virginia (FCV) production is around 209 million kg in 2018-19. Andhra Pradesh and Karnataka are the main producing States, according to the report.

FDI in tobacco

The panel opined that allowing FDI in tobacco sector in a regulated manner would stimulate production and processing of Indian tobacco and export. It recommended a study to analyse the prospects of opening FDI in the sector and impose 1% levy on sale of cigarettes, which may be utilised as market stabilisation fund for tobacco, to ensure price security to tobacco growers in times of market crisis.