AGRICULTURE AND FOOD SECTOR

GROWTH PROSPECTS AND THRUST AREAS OF INDIAN EXPORTS Prof. Alka Maurya
A Group Presentation by Gaurav Gupta

APEDA
The Agricultural and Processed Food Products Export Development Authority (APEDA) was 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 The Authority replaced the Processed Food Export Promotion Council (PFEPC). The Agricultural and Processed Food Products Export Development Authority (APEDA) come into existence in 1986 to further develop our agricultural commodities and processed foods, and to promote their exports. Its goods are to maximize foreign exchange earnings through increased agro exports, to provide better income to the farmers through higher unit value realization and to create employment opportunities in rural areas by encouraging value added exports of farm produce. APEDA went about achieving these by identifying new markets, providing better support systems to our exporters and manufactures, and introducing new products to the international market.

No wonder the exports have shown a rising trend. It has increased from Rs 10169 crores in 2001-2002 to Rs. 82480 IN 2011-2012 .APEDA went about achieving these by identifying new markets, providing better support systems to our exporters and manufactures, and introducing new products to the international market.

AGRICULTURE AND FOOD PRODUCTS UNDER APEDA FRESH FR AND VEG FRESH ONIONS WALNUTS OTHER FRESH VEG OTHER FRESH FRUITS FRESH MANGOES FRESH GRAPES PROCESSED FR AND VEG FLORICULTURE AND SEEDS ANIMAL PRODUCTS BUFFALO MEAT SHEEP & GOAT MEAT POULTRY PRODUCTS CEREALS NON BASMATI RICE BASMATI RICE OTHER CEREALS WHEAT

FLORICULTURE

FRESH FR AND VEG SEEDS

DAIRY PRODUCTS
ANIMAL CASINGS PROCESS MEAT NATURAL HONEY

PROCESSED FRUITS AND VEGETABLES

1.Dried and Preserved vegetables 2.Mango Pulp 3.Other Processed fruits and vegetables 4.Pulses 5.Groundnuts 6.Jaggery and confectionary 7.Gaur Gum 8.Cocoa Products 9.Cereal Preparations 10.Alcoholic Beverages 11.Miscellaneous Preparations 12.Milled Products

PRODUCTS
Jaggery is unrefined natural sugar that is produced without adding any chemicals Casing, sausage casing, or sausage skin is the material that encloses the filling of a sausage Natural casings are derived from the intestinal tract of farmed animals, are edible and bear a close resemblance to the original intestine after processing. The outer fat and the inner mucosa lining are removed during processing.

 Agriculture was a major component till the early years following independence, a shift towards manufactured exports occurred due to the industrialization which took place during that time. Non agriculture exports have grown more rapidly than agricultural exports. Even Growth of agriculture sector has not been consistent . The share of agriculture has fallen more rapidly post trade liberalization, which may, in part be because an important goal of agricultural policy was to achieve self-sufficiency in agriculture and this limited the scope of trade.

OVERVIEW

Sectoral composition of GDP

Source-CSO

SHARE OF AGRICULTURE IN GDP

Agriculture
18.0 16.0 14.0 12.0 10.0 8.0 6.0 4.0 Agriculture

2.0
0.0 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10

Source:Min. of Agri

GDP GROWTH COMPARISON

Source:Min. of Agri

%age Agriculture Exports to Total National Exports

%age Agriculture Exports to Total National Exports
25

20

15

10

Source:Min. of Agri

%age Agriculture Exports to Total National Exports

However post Uruguay Round

However, technological developments and macroeconomic policy reforms (following the Uruguay Round agreement) have contributed to changes in international trade of agriculture. Agriculture exports have risen almost 9 folds from 2.3 billion USD(95-96) to 17.938 billion USD(2011-2012).

THE LEADER
India is the largest producer of milk in the world (121 million tonnes). India has the largest buffalo population (105 million). It is the largest producer of mangoes in the world (15 million tonnes). It is also the largest producer of bananas (29 million tonnes). It occupies the second position in fruit (74.8 million tonnes ) and vegetable production (146.5 million tonnes).

PERFORMANCE OF INDUSTRY

AGRICULTURE EXPORT 5 YEAR AGRICULTURE EXPORTS OF INDIA

90.00 80.00 70.00 60.00

50.00 VALUE
40.00

30.00
20.00 10.00 0.00 -10.00 2006-07 YoY Change 2007-08

2008-09

2009-10

Total(in BILLION USD) 2010-11 2011-12

Source:APEDA
Total(in BILLION USD) YoY Change 2006-07 4.84 14.047 2007-08 7.88 62.86512405 2008-09 7.89 0.184974533 2009-10 7.35 -6.906693802 2010-11 9.59 30.58274233 2011-12 17.94 86.99770666

Source:APEDA Category Year Comparison

18

16

14

12 Export Value in billion USD

10

FLORICULTURE

FRESH FRUITS & VEGETABLES 0.95 0.87 1

2009-2010 2010-2011 2011-2012

0.09 0.1 0.14

PROCESSED FRUITS AND VEGETABLES 0.66 0.78 0.94

ANIMAL PRODUCTS 1.52 2.22 3.16

OTHER PROCESSED FOODS 1.09 2.25 6.26

CEREALS

Grand Total

3.04 3.38 6.45

7.35 9.6 17.95

FLORICULTURE
VALUE IN BILLION USD %change 2009-10 PRODUCT FLORICULTURE Floriculture Fruit and Vegetable Seeds Total Value 10-11 Value 11-12 Value Value Share in total Agri exports Share in Total

0.06 0.03 0.09

0.06 0.04 0.1

0.08 33.3333333 0.445682451 0.06 50 0.334261838 0.14 40 0.77994429

Source:APEDA

Floriculture
0.14

0.12

0.1 value in billion usd

0.08

0.06

0.04

0.02

0 Floriculture Fruit and Vegetable Seeds Total

2009-2010 0.06 0.03 0.09

2010-2011 0.06 0.04 0.1

2011-2012 0.08 0.06 0.14

Source:APEDA

Fresh Fruits and Vegetables

FRESH FRUITS & VEGETABLES Fresh Onions Other Fresh Vegetables Other Fresh Fruits Fresh Grapes Walnuts

20102009-10 2011
0.49 0.15 0.11 0.12 0.04

% Share in 2011-2012 CHANGE total 7.69230 0.39 0.36 77 2.005571031

0.2 0.11 0.09 0.04 0.27 35 1.504178273 36.3636 0.15 364 0.835654596 44.4444 0.13 444 0.724233983 0.05 25 0.278551532

Fresh Mangoes
Total

0.04
0.95

0.04
0.87

0.04

0 0.222841226 14.9425 5.57103064 1 287 1

Source:APEDA

Fresh Fruits and Vegetables

1

0.9

0.8

0.7 Export Value in biliion USD

0.6

0.5

0.4

0.3

0.2

0.1

0 2009-2010 2010-2011 2011-2012

Fresh Onions 0.49 0.39 0.36

Other Fresh Vegetables 0.15 0.2 0.27

Other Fresh Fruits 0.11 0.11 0.15

Fresh Grapes 0.12 0.09 0.13

Walnuts 0.04 0.04 0.05

Fresh Mangoes 0.04 0.04 0.04

Total 0.95 0.87 1

Source:APEDA

PROCESSED FRUITS AND VEGETABLES

PROCESSED FRUITS AND % Share in VEGETABLES 09-10 10-11 11-12 change total Other Processed Fruits and 46.666 2.451253 Vegetables 0.3 0.3 0.44 6667 482 15.789 1.225626 Pulses 0.09 0.19 0.22 4737 741 Dried and Preserved 36.363 0.835654 Vegetables 0.11 0.11 0.15 6364 596 27.777 0.724233 Mango Pulp 0.16 0.18 0.13 778 983 20.512 5.236768 Total 0.66 0.78 0.94 8205 802
Source:APEDA

Processed Fruits and Veg

1 0.9 0.8 0.7 0.6 0.5 0.4 0.3 0.2

Export Value in billion usd

0.1
0

2009-2010 2010-2011 2011-2012

Other Processed Fruits and Vegetables 0.3 0.3 0.44

Pulses

Dried and Preserved Vegetables 0.11 0.11 0.15

Mango Pulp

Total

0.09 0.19 0.22

0.16 0.18 0.13

0.66 0.78 0.94

Source:APEDA

ANIMAL PRODUCTS
ANIMAL PRODUCTS Buffalo Meat

Source:APEDA

Poultry Products
Natural Honey Dairy Products

Sheep / Goat Meat

Animal Casings Processed Meat Swine Meat

Share in 09-10 10-11 11-12 %change total 51.322751 15.933147 1.16 1.89 2.86 3 63 42.857142 0.5571030 0.08 0.07 0.1 9 64 0.3899721 0.03 0.07 0.07 0 45 0.3342618 0.08 0.12 0.06 -50 38 0.2785515 0.16 0.06 0.05 -16.666667 32 0.0557103 0.01 0.01 0.01 0 06 0.0557103 0 0 0.01 06 0 0 0 42.342342 17.604456 Total 1.52 2.22 3.16 3 82

Animal Products
3.5

2.5

Biiion USD

1.5

0.5

Buffalo Meat 2009-2010 2010-2011 2011-2012 1.16 1.89 2.86

Poultry Products 0.08 0.07 0.1

Natural Honey 0.03 0.07 0.07

Dairy Products 0.08 0.12 0.06

Sheep / Goat Meat 0.16 0.06 0.05

Animal Casings 0.01 0.01 0.01

Processe d Meat 0 0 0.01

Swine Meat 0 0 0

Total

1.52 2.22 3.16

Source:APEDA

OTHER PROCESSED FOODS

Share in OTHER PROCESSED FOODS 09-10 10-11 11-12 %change total 19.220055 Guargum 0.24 0.64 3.45 439.0625 71 127.0833 6.0724233 Ground Nuts 0.3 0.48 1.09 33 98 4.0111420 Jaggery and Confectionery 0.05 0.45 0.72 60 61 44.44444 2.1727019 Cereal Preparations 0.21 0.27 0.39 44 5 66.66666 1.6713091 Alcoholic Beverages 0.12 0.18 0.3 67 92 1.5041782 Miscellaneous Preparations 0.15 0.2 0.27 35 73 33.33333 0.2228412 Cocoa Products 0.02 0.03 0.04 33 26 178.222 34.874651 Total 1.09 2.25 6.26 222 81
Source:APEDA

Other Processed Food

7

Export value in BILLION USD

Guargum

Ground Nuts

2009-2010 2010-2011 2011-2012

0.24 0.64 3.45

0.3 0.48 1.09

Jaggery Cereal and Preparati Confectio ons nery 0.05 0.21 0.45 0.27 0.72 0.39

Alcoholic Miscellan Beverage eous s Preparati ons 0.12 0.15 0.18 0.2 0.3 0.27

Cocoa Products

Total

0.02 0.03 0.04

1.09 2.25 6.26

Source:APEDA

Cereals
CEREALS Basmati Rice Non Basmati Rice
09-10 10-11 11-12

Source:APEDA

Share in %change total

2.3 2.49 0.08 0.05

Other Cereals
Wheat Milled Products Total

0.63
0

0.8
0

0.03 0.04 3.04 3.38

Grand Total

7.35

9.6

29.3172 17.93871 3.22 691 866 10.08356 1.81 3520 546 6.406685 1.15 43.75 237 1.169916 0.21 435 0.334261 0.06 50 838 90.8284 35.93314 6.45 024 763 86.9791 17.95 667 100

Cereals
7

BILIION USD

Basmati Rice 2009-2010 2010-2011 2011-2012 2.3 2.49 3.22

Non Basmati Rice 0.08 0.05 1.81

Other Cereals 0.63 0.8 1.15

Wheat 0 0 0.21

Milled Products 0.03 0.04 0.06

Total 3.04 3.38 6.45

Source:APEDA

SHARE IN TOTAL AGRICULTURAL EXPORT BY CATEGORY FLORICULTURE 1% FRESH FRUITS & VEGETABLES PROCESSED 6% FRUITS AND VEG 5% ANIMAL PRODUCTS 18% OTHER PROCESSED FOODS 33%

CEREALS 37%

Source:APEDA

Source:APEDA
Value in US$ Billion

2010-11
WHEAT NON BASMATI GUARGUM GROUNDNUT SPIRIT & BEVERAGES PROCESSED FRUITS & JUICES MEAT & PREPARATIONS FRUITS / VEGETABLE SEEDS OTHER CEREALS MISC PROCESSED ITEMS PROCESSED VEGETABLES POULTRY PRODUCTS BASMATI-RICE FLORICULTURE PRODUCTS PULSES FRESH FRUITS FRESH VEGETABLES DAIRY PRODUCTS Total 0.00015 0.0488 0.61998 0.45958 0.17891 0.21965 1.89031 0.03902 0.76972 0.55449 0.16118 0.05985 2.39552 0.06246 0.18265 0.45868 0.53711 0.17936 8.81742

2011-12
0.21241 1.79838 3.39351 1.08913 0.30865 0.34415 2.9276 0.05909 1.13677 0.78942 0.21917 0.08058 3.20549 0.07578 0.22113 0.525 0.59969 0.12615 17.11210

Percentage Change 141506.6667 3585.204918 447.3579793 136.9837678 72.51690794

56.68108354 54.87406827 51.43516146 47.68617159 42.3686631 35.97840923 34.63659148 33.81186548 21.32564841 21.06761566 14.45888201 11.65124462 -29.66659233 94.07

TOP COMMODITIES BY 8 DIGIT HS CODE

Product (10063020 )Basmati Rice (13023230 )Guargum treated and pulverised (02023000 )Bovine cuts boneless, frozen (10063010 )Rice parboiled (12022010 )Groundnuts HPS Kernels (10059000 )Maize (corn), other than seed (17011190 )Other cane jaggery (13023220 )Guargum refined split (07031010 )Onions, fresh/chilled (10063090 )Other rice 2010-11 2.49114 0.51899 1.86681 0.02136 0.46803 0.71713 0.37579 0.11138 0.39037 0.01456 2011-12 Percentage change 3.22231 3.02086 2.81102 1.25429 1.07969 1.05917 0.64044 0.40114 0.35933 0.34987

29.3508193
482.065165 50.57879484

5772.144195
130.6882037 47.69567582

70.42497139
260.1544263 -7.951430694 2302.953297 Source:APEDA

export of principal commodities(IN BILLION USD)

3.5

Source:APEDA

2.5

1.5

0.5

MEAT NON OTHER GROUN MISC FRESH FRESH PROCES SPIRIT PULSES PROCES WHEAT DAIRY POULT & BASMA CEREAL DNUT PROCES VEGETA FRUITS SED & SED PRODU RY PREPAR TI S SED BLES FRUITS BEVERA VEGETA CTS PRODU ATIONS ITEMS & GES BLES CTS JUICES 2010-11 0.61998 2.39552 1.89031 0.0488 0.76972 0.45958 0.55449 0.53711 0.45868 0.21965 0.17891 0.18265 0.16118 0.00015 0.17936 0.05985 0.525

GUARG BASMA UM TI-RICE

FLORIC FRUITS ULTURE / PRODU VEGETA CTS BLE SEEDS 0.06246 0.03902

2011-12 3.39351 3.20549 2.9276 1.79838 1.13677 1.08913 0.78942 0.59969

0.34415 0.30865 0.22113 0.21917 0.21241 0.12615 0.08058 0.07578 0.05909

MAJOR EXPORT DESTINATIONS

USA 18% OTHERS 37% VIETNAM SOC REP 8%

U ARAB EMTS 8%
SAUDI ARAB 7% IRAN 4% EGYPT A RP 2% NIGERIA 2% KUWAIT 2%

BANGLADESH PR 3%

MALAYSIA 4%

INDONESIA 5%

2010-11(BILLION USD) CountryName Value

2011-12(BILLION Percentage USD) Change Value Value

USA
VIETNAM SOC REP U ARAB EMTS SAUDI ARAB INDONESIA MALAYSIA IRAN BANGLADESH PR KUWAIT NIGERIA EGYPT A RP UK

.6848
.44038 1.03349 .97069 .36121 .59927 .5075 .38027 .3386 .01219 .26563 .22391

3.00462 338.7588
1.3927 216.2496 1.37653 33.19239 1.14973 18.44461 .78735 117.9757 .76964 28.42959 .71121 40.1399

.49375 29.84195 .4012 18.48789 .39367 3129.45

.36964 39.15597 .34553 54.31647

Source:APEDA

REGIONAL EXPORT
Region Name WANA ASEAN North America South Asia EU_27 West Africa NE Asia East Africa Southern Africa CIS Countries East Asia Latin America Other We Countries UNSPECIFIED Central Africa CARs Countries East Europe Total

Source:APEDA

2010-11((billion USD)) 2011-2012(billion USD) Percentage change 4.14318 5.63333 35.96633504 1.97554 3.61561 83.01882017 0.78774 3.21353 307.9429761 0.94167 1.28971 36.95986917 0.70474 1.16367 65.12046996 0.18392 1.1072 502.0008699 0.16997 0.5021 195.4050715 0.14694 0.38144 159.5889479 0.16289 0.32477 99.37994966 0.15643 0.06784 0.0565 0.0578 0.02126 0.00613 0.00879 0.00231 9.59365 0.25977 0.14714 0.13722 0.10303 0.02401 0.02271 0.01579 0.00215 17.94318 66.06149716 116.8926887 142.8672566 78.25259516 12.93508937 270.4730832 79.63594994 -6.926406926 87.03183877

Latin America Southern Africa 1% CIS 2% Countries East Africa 1% 2% NE Asia West Africa 3% 6% EU_27 6% South Asia 7%

REGIONAL EXPORT
UNSPECIFIED East Other We Asia Countries0% 1% 1%

Central Africa 0% East CARs Countries Europe 0% 0%

WANA 31%

North America 18%

ASEAN 20%

Source:APEDA

Year comparison
18

Source:APEDA

16

14

12

10

2010-11

Latin Other UNSPE Central CARs East Total Americ We CIFIED Africa Countri Europe a Countri es es 4.14318 1.97554 0.78774 0.94167 0.70474 0.18392 0.16997 0.14694 0.16289 0.15643 0.06784 0.0565 0.0578 0.02126 0.00613 0.00879 0.00231 9.59365

WANA

ASEAN

North Americ a

South Asia

EU_27

West Africa

NE Asia

East Africa

Southe CIS rn Countri Africa es

East Asia

2011-2012 5.63333 3.61561 3.21353 1.28971 1.16367 1.1072 0.5021 0.38144 0.32477 0.25977 0.14714 0.13722 0.10303 0.02401 0.02271 0.01579 0.00215 17.9432

TOP 5 EXPORT DESTINATIONS FOR EXPORTS

FLORICULTURE UNITED STATES (19.51 GERMANY (15.75 %) %) FRUIT AND VEGETABLE SEEDS PAKISTAN (25.47 %) BANGLADESH (8.24 %) FRESH ONIONS MALAYSIA (25.74 %) BANGLADESH (22.41 %) OTHER FRESH VEGETABLES PAKISTAN (30.71 %) UNITED ARAB EMIRATES (15.99 %) WALNUTS SPAIN (14.44 %) EGYPT ARAB REPUBLIC (12.21 %) FRESH MANGOES UNITED ARAB BANGLADESH (19.35 EMIRATES (51.19 %) %) FRESH GRAPES NETHERLAND (23.71 BANGLADESH (20.63 %) %) OTHER FRESH FRUITS BANGLADESH (33.95 UNITED ARAB %) EMIRATES (22.60 %)
NETHERLAND (14.82 UNITED KINGDOM JAPAN (4.03 %) %) (10.56 %)

NETHERLAND (7.38 MALAYSIA (7.19 %) %)

UNITED STATES (6.92 %)

UNITED ARAB SRI LANKA (10.14 PAKISTAN (6.07 %) EMIRATES (12.88 %) %) UNITED KINGDOM (8.85 %) NEPAL (7.41 %) SAUDI ARABIA (6.51 %) UNITED KINGDOM (9.74 %) NEPAL (3.20 %)

GERMANY (11.80 %) NETHERLAND (11.42 %) UNITED KINGDOM (7.83 %) SAUDI ARABIA (5.58 %)

UNITED ARAB UNITED KINGDOM RUSSIA (6.79 %) EMIRATES (10.70 %) (9.11 %) SAUDI ARABIA (7.87 NEPAL (6.30 %) %) MALAYSIA (3.03 %)

Source:APEDA

DRIED AND PRESERVED VEGETABLES GERMANY (11.32 %) FRANCE (9.85 %)

RUSSIA (9.74 %)

UNITED STATES (9.40 %)

UNITED KINGDOM (7.61 %)

MANGO PULP SAUDI ARABIA (25.26 NETHERLAND (14.92 YEMEN REPUBLIC %) %) (8.17 %) OTHER PROCESSED FRUITS AND VEGETABLES UNITED STATES SAUDI ARABIA (9.01 NETHERLAND (8.62 (22.29 %) %) %) PULSES PAKISTAN (20.49 %) ALGERIA (19.78 %) TURKEY (14.98 %) BUFFALO MEAT VIETNAM SOCIAL MALAYSIA (10.23 %) REPUBLIC (29.48 %) SHEEP / GOAT MEAT SAUDI ARABIA (51.13 UNITED ARAB %) EMIRATES (24.95 %) POULTRY PRODUCTS OMAN (22.87 %) GERMANY (7.34 %) DAIRY PRODUCTS UNITED ARAB NEPAL (12.11 %) EMIRATES (32.37 %) ANIMAL CASINGS SYRIA (13.55 %) LEBANON (10.83 %)

UNITED ARAB KUWAIT (5.25 %) EMIRATES (6.58 %)

UNITED KINGDOM UNITED ARAB (8.07 %) EMIRATES (5.87 %) SRI LANKA (11.00 UNITED ARAB %) EMIRATES (7.60 %)
SAUDI ARABIA (6.90 %) KUWAIT (5.49 %) JORDAN (6.40 %)

EGYPT ARAB REPUBLIC (8.33 %) QATAR (9.64 %)

OMAN (2.38 %)

AFGHANISTAN (7.16 INDONESIA (5.72 %) %) SINGAPORE (8.98 %) OMAN (6.14 %)

PAKISTAN (5.62 %)

EGYPT ARAB REPUBLIC (5.65 %) ALBANIA (7.46 %)

ROMANIA (9.70 %)

SOUTH AFRICA (8.95 %)

PROCESSED MEAT MYANMAR (41.50 %) THAILAND (22.80 %) AUSTRALIA (8.62 %) SAUDI ARABIA

UNITED ARAB

NATURAL HONEY UNITED STATES (86.30 %) SWINE MEAT BHUTAN (34.63 %) GROUND NUTS INDONESIA (30.30 %) GUARGUM UNITED STATES (75.32 %)

SAUDI ARABIA (5.99 YEMEN REPUBLIC %) (1.59 %)

UNITED ARAB EMIRATES (1.05 %)

MOROCCO (1.03 %)

SPAIN (14.97 %)

VIETNAM SOCIAL MYANMAR (12.04 LITHUANIA (10.04 REPUBLIC (14.79 %) %) %)

VIETNAM SOCIAL MALAYSIA (9.29 %) PHILIPPINES (6.69 CHINA P RP (4.58 REPUBLIC (28.69 %) %) %) CHINA P RP (5.87 %) GERMANY (3.97 %) RUSSIA (1.86 %) AUSTRALIA (1.53 %) YEMEN REPUBLIC (7.22 %) UNITED STATES (8.39 %) BANGLADESH (5.07 %)

JAGGERY AND CONFECTIONERY UNITED ARAB SRI LANKA (11.29 %) BANGLADESH (10.77 MALAYSIA (9.99 EMIRATES (14.36 %) %) %) COCOA PRODUCTS NETHERLAND (18.57 NEPAL (14.78 %) %) CEREAL PREPARATIONS UNITED STATES UNITED KINGDOM (15.21 %) (9.99 %) ALCOHOLIC BEVERAGES UNITED ARAB ANGOLA (15.44 %) EMIRATES (18.98 %) CHINA P RP (9.30 %) SRI LANKA (8.39 %) NEPAL (5.97 %) UNITED ARAB EMIRATES (5.21 %)

GHANA (13.19 %)

SINGAPORE (3.95 CAMEROON (3.71 %) %)

MISCELLANEOUS PREPARATIONS UNITED STATES UNITED ARAB UNITED KINGDOM BANGLADESH (15.82 %) EMIRATES (10.61 %) (5.49 %) (4.95 %)
BASMATI RICE UNITED ARAB SAUDI ARABIA EMIRATES (22.22 %) (21.88 %) NON BASMATI RICE NIGERIA (20.49 %) SENEGAL (6.81 %)

NEPAL (4.89 %)

IRAN (18.40 %)

KUWAIT (8.82 %) IRAQ (4.36 %)

COTE D IVOIRE (6.43 INDONESIA (6.31 UNITED ARAB %) %) EMIRATES (5.76 %)

WHEAT BANGLADESH (41.78 %)

UNITED ARAB PAKISTAN (6.42 %) AFGHANISTAN EMIRATES (15.22 %) (5.79 %)

THAILAND (5.75 %)

OTHER CEREALS INDONESIA (25.40 MALAYSIA (19.41 %) VIETNAM SOCIAL BANGLADESH %) REPUBLIC (18.38 %) (11.17 %)
MILLED PRODUCTS UNITED STATES UNITED ARAB AUSTRALIA (6.69 %) SOMALIA (5.59 (23.04 %) EMIRATES (14.23 %) %)

TAIWAN (5.93 %)

UNITED KINGDOM (5.59 %)

EXPORT - Figures
FLORICULTURE
PRODUCT AREA OF CULTIVATION MAJOR EXPORT DESTINATION USA, Netherland, UK, Germany, Japan 2010-11 VAL.

Val. BL US$ Qty. - Mt.

2011-12 VAL.

Maharashtra, Karnataka, Andhra Floriculture Pradesh , Haryana, Tamil Nadu Fruits and Maharashtra, Vegetables Karnataka, Tamil Seeds Nadu Uttar Pardesh
SOURCE- www.apeda.gov.in

.06282

.0758

Pakistan , Netherland, USA, Bangladesh, Japan.

.03844

.05909

Val. - BL US$ Qty. - Mt.

FRESH FRUITS & VEGETABLES

PRODUCT

AREAS OF CULTIVATION

MAJOR EXPORT DESTINATIONS

Bangladesh, Malaysia, UAE, Sri Lanka, Pakistan.

2010-11 2011-12 VAL. VAL.

Gujarat, Uttar Fresh Onions Pradesh, Orissa, Karnataka, Bihar

.39037 .35933

Walnuts

Jammu & Kashmir, Uttaranchal, Himachal Pradesh

Spain, Netherlands, Egypt Arab Republic, Germany, France.

.03648 .04820

Mango

Andhra Pradesh, UAE, UK, Bangladesh, Uttar Pradesh, West Kuwait, Saudi Arabia Bengal, Maharashtra

35.77

.04373

Grapes

Maharashtra, Andhra Pradesh, Tamil Nadu

Netherlands, UK, Bangladesh, UAE, Belgium.

90.37

.12577

SOURCE- www.apeda.gov.in

Val. BL US$ Qty. - Mt.

PROCESSED FOODS & VEGETABLES

PRODUCT AREAS OF CULTIVATION MAJOR EXPORT DESTINATIONS Belgium, USA, Bangladesh, France, Russia. Saudi Arabia, Netherlands, Yemen, UAE, UK 2010-11 2011-12 VAL. VAL.

Dried and J&K, Himachal Preserved pradesh, Tamil Vegetables Nadu, Chittoor in Andhra Pradesh Mango Pulp & Krishnagiri in Tamil Nadu Punjab, Haryana, West Bengal Pulses delta region, Kerala

.1134 .14606

. 15709 .12942

Pakistan, Algeria, UAE, Sri Lanka, Turkey

Indonesia, Philippines, Malaysia, Thailand, UK.

.19091 .22274

Bihar , Gujarat , Ground Nut Haryana , Uttar Pradesh

SOURCE- www.apeda.gov.in

.47791

1.0942 2

Val. BL US$ Qty. - Mt.

PRODUCT Jaggery & Confectionary

AREA OF MAJOR EXPORT 2010-11 2011-12 CULTIVATION DESTINATION VAL. VAL. UAE, Sri Lanka, Bangladesh, Iran, Malaysia .446 .72150

USA, China, Rajasthan, Guargum Germany, Russia , Haryana, Punjab Australia. Nepal , USA, UK, Cocoa Kerala, Karnataka, Nigeria, Products Tamil Nadu. Netherland. UAE, Alcoholic & Netherlands, Non-Alcoholic Angola, France, Beverages Singapore. Milled Products
SOURCE- www.apeda.gov.in

.64475 3.44636

.02784 .03666

.17936 .30449

USA, Maldives, UAE, Canada, UK.

.03719 .05969

Val. BL US$ Qty. - Mt.

ANIMAL PRODUCTS
PRODUCT Buffalo Meat AREA OF CULTIVATION MAJOR EXPORT 2010-11 2011-12 DESTINATION VAL. VAL. 1.88850 2.86266

Maharastra, Andhra Vietnam, Malaysia, Pradesh , Uttar Philippines, Pradesh Saudi Arabia, UAE, Kuwait, Angola

Sheep \ Rajasthan, J&K Goat Meat

.05678

.05323

Germany, Poultry Karnataka, Tamil Afghanistan, Saudi Products Nadu, Maharashtra Arabia
Dairy Maharashtra , UAE, Thailand Products Himachal Pradesh Processed Andhra Pradesh , Meat West Bengal Vietnam,Malaysia Australia

.06895 .09549 .12022 .06035 .00428 .00626 .06601 .06700

Natural Honey

North East, Maharashtra

USA, Germany, Belgium,

SOURCE- www.apeda.gov.in

Val. BILLION US$ Qty. - Mt.

CEREALS
PRODUCT

AREA OF CULTIVATION

MAJOR EXPORT DESTINATION

Saudi Arabia, UAE, Iran, Kuwait, UK.

2010-11 2011-12 VAL. 2.49114 VAL. 3.22231

J & K, Himachal Basmati Rice Pradesh, Punjab, Haryana, Delhi Wheat Uttar Pradesh, Punjab, Haryana

Myanmar, Bangladesh, France, 0.00015 UAE , Nepal

Malaysia, Saudi Arabia, Vietnam Social Republic, Taiwan, UAE

.21342

Other Cereals

.80046 1.14566

SOURCE- www.apeda.gov.in

WORLD AND INDIA

INDIA SHINING
India is the largest producer of milk in the world (121 million tonnes). India has the largest buffalo population (105 million). It is the largest producer of mangoes in the world (15 million tonnes). It is also the largest producer of bananas (29 million tonnes). It occupies the second position in fruit (74.8 million tonnes ) and vegetable production (146.5 million tonnes).

INDIA SHINNING
Rank 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 Commodity Goat milk, whole, fresh Fruit Fresh Nes Mangoes, mangosteens, guavas Other Bastfibres Spices, nes Bananas Safflower seed Sorghum Pulses, nes Fruit, tropical fresh nes Papayas Buffalo milk, whole, fresh Jute Beeswax Chick peas Castor oil seed Okra Lemons and limes Chillies and peppers, dry Millet Beans, dry Pigeon peas Arecanuts Sesame seed

SOURCE- FAO ,2010

2nd POSITION
2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 Cotton lint Ginger Tea Sugar cane Potatoes Rice, paddy Eggplants (aubergines) Garlic Onions, dry Vegetables fresh nes Cabbages and other brassicas Nutmeg, mace and cardamoms Lentils Cashew nuts, with shell Groundnuts, with shell Cottonseed Cauliflowers and broccoli Peas, green Silk-worm cocoons, reelable Wheat Pumpkins, squash and gourds Cow milk, whole, fresh Indigenous Goat Meat

SOURCE- FAO ,2010

OVERVIEW
Exports of food staples are dominated by a very small group of countries described as natural exporters such as Canada, New Zealand, Uruguay and the U.S. In these countries, favourable geographical conditions, sparse population and a history of colonization have resulted in large scale and extensive agriculture that delivers substantial surpluses of food staples. The only exception to these conditions among global exporters of staples is Europe, where, as widely recognized, state support to farmers has been responsible for the exportable surpluses. Only a few developing countries figure among the group of natural exporters, which are significant exporters of grains and animal products. They are Thailand (rice and poultry), Vietnam (rice), Argentina (wheat, feed grains, soybeans, beef and milk powder), Brazil (soybeans, beef and poultry) and Uruguay (beef).

SHARE IN GLOBAL AGRICULTURE TRADE

SOURCE- WTO ,2011

SHARE IN GLOBAL FOOD TRADE

SOURCE- WTO ,2011

APEDAs Financial Assistance Schemes

Schemes for Market Development - Packaging Development - Feasibility Study, Survey, Consultancy & Database Up-gradation - Export Promotion & Market Development
Schemes for Infrastructure Development Schemes for Quality Development - Promotion of Quality & Quality Control - Capacity Building & Organization Management Schemes for Research & Development

Transport Assistance 2007-12

MDA in AGRICULTURE EXPORTS

Exporting companies with an f.o.b. value of exports of up to Rs. 15 crore in the preceding year will be eligible for MDA assistance for participation in trade delegations/BSMs/fairs/exhibitions abroad to explore new markets for export of their specific product (s) and commodities from India in the initial phase Assistance would be permissible on travel expenses by air, in economy excursion class fair and/or charges of the built up furnished stall. This would, however, be subject to an upper ceiling mentioned in the table per tour.

Sl. Area/Sector No 1 Focus LAC Focus Africa (Including 2 WANA countries) 3 Focus CIS 4 Focus ASEAN +2 5 General Areas TOTAL

No. of visits eligible Maximum Financial ceiling per event 1 Rs. 1,80,000

1
1 1 1 5

Rs. 1,50,000
Rs. 1,50,000 Rs. 1,50,000 Rs. 80,000* General Areas

For EPC etc. led Trade Delegations/BSMs only air-fare by Economy Excursion class up to a maximum of Rs. 70,000 (Rs. 1,00,000 in case of Focus LAC) shall be permissible Assistance shall be permissible to one regular employee/director/ partner/proprietor of the company. Assistance would not be available to exporter of foreign nationality or holding foreign passport.

MDA BY APEDA 2011-2012

APEDA has initiated the following steps for market promotion of agro products: As result of APEDAs effort the Australian market for Indian mangoes has been opened in 2011-12. Efforts are being made constantly for opening up of Australian market for Indian grapes, US market for grapes and Litchi, Chinese market for fruit & vegetables. APEDA has organized mango promotion programme in UAE, during the last last mango season. Efforts are also being made to lift the ban on poultry products in Oman, Kuwait, UAE, and Saudi Arabia. Efforts are also being made to open up in markets like Russia for Bovine meat and an FSVPS team was invited to visit India for the purpose.

MAI in APEDA
Activities to be funded under marketing project : Opening of showrooms; Opening of warehouses; Display in international Dept. stores; Publicity campaign and Brand promotion; Participation in trade fair etc. abroad; Research & Product development; Reverse visits of the prominent buyers from project focus countries; Export potential survey of the states; Registration charges for product registration abroad for pharmaceuticals, biotechnology and agro-chemicals; Testing charges for engineering products abroad; Support cottage and handicrafts units; Support recognised associations in industrial clusters for marketing aborad;

Marketing Projects Abroad:

Level of Assistance : Under the Scheme 75%, 50% and 33% of leasing/rental charges in the first, second and the third year, respectively, would be provided as assistance. There would be a ceiling of Rs.100.00 lakhs for each market/product per annum. However, in cases of multi product showroom/warehouse(s) the ceiling would be Rs.500 lakhs for each market per annum. The Empowered Committee, after the review of the performance and impact made by such interventions, may allow financial support of 25% of leasing / rental charges per year for a further period not exceeding three years.

National Level Participation & Organising Trade Festival of India etc., abroad.
Level of Assistance : The assistance would be subject to a ceiling of Rs. 500 lakhs for each fair. The following sub-components would be covered : Venue Cost including organizing expenses Publicity cost for the event Cost of the catalogues and other material Translation and interpreter charges Any other component approved by the Empowered Committee

The level of assistance shall be 65% of the approved expenditure. However, the assistance upto 90% may be provided by the Empowered Committee in deserving cases on a case to case basis.

PUBLICATION OF CATALOGUES
Level of Assistance : 50% assistance would be provided for a particular market subject to a ceiling of Rs.10 lakhs per market per annum. The assistance can be considered after 3 years for updating the catalogues.

Publicity Campaign and Brand Promotion

Level of Assistance : 50% assistance would be provided for two years in a particular market subject to a ceiling of Rs.100 lakhs per annum/per market. The assistance can be considered for the third year after a review of the result of the project in the first two years. However, upto 90% assistance may be provided to undertake publicity campaigns in Priority sectors having large employment generation potential, viz. Agriculture including food items, Handicrafts, Handlooms, Carpets, Leather & Minor Forest Produce including LAC for establishing Brand India with an overall ceiling of Rs.200 lakhs on any product per annum per market.

Displays in International Departmental Store

Tie up with local distributors /major stores shall be used as a tool for promoting particular product(s). International Departmental Stores chains would be identified on the basis of marketing studies/surveys. Level of Assistance : Under the Scheme 50% of rental charges of display space would be provided as assistance, subject to a ceiling of Rs.100 lakhs per annum/each product.

Research and Product Development

Level of Assistance : 65% of the total approved cost subject to a ceiling of Rs.100 lakhs for each product, would be borne by the Scheme and the balance 35% by the concerned EPCs/Exporters / TPOs.

Under the Scheme, assistance to reverse visits of the prominent buyers, journalists/editors of trade journals and representatives of leading buying houses from the project focus countries for visiting important trade fairs/exhibitions/BSMs/Seminars and to visit important units in India would be provided to the Eligible Agencies. Level of assistance : 65% of the total approved expenditure. The following sub-components would be covered: Venue Cost Publicity cost for the event Cost of the catalogues and other material Translation and Interpreters charges Any other component approved by the Empowered Committee

Assistance to reverse visits of the prominent foreign buyers, Foreign Trade Journalists

100% of the air travel cost of the foreign visitors in the economy/excursion class and hotel charges would be financed subject to a ceiling of Rs.75,000 (Rs.1,00,000 in case of the American Continent) per visitor.

MAI 2011-2012
During the year 2011-12 (upto 31.12.2011), 190 projects/export promotion events and studies/export promotion surveys were approved for assistance of under the MAI scheme, by different Export Promotion Organisations/Trade Promotion with a outlay of Rs149 crores but actual expenditure of Rs116 crores.

Other Promotional Measures

VISHESH KRISHI AND GRAM UDYOG YOJANA(VKGUY) Objective-To promote export of Agricultural Produce & value added product Duty Credit Scrip benefits are granted with an aim to compensate high transport costs & to offset other disadvantages. Agri. Infrastructure Incentive Scrip For exports made during a particular year, all Status Holders exporting products covered under ITC HS Chapters 1 to 24 shall be incentivized with duty credit scrip equal to 10% of FOB value of agricultural exports provided that the total benefits for all status holders put together does not exceed Rs 100 Cr The following capital goods shall be permitted for import: - Cold storage units, Pre-cooling Units and Mother Storage Units for Onions - Pack Houses (including facilities for handling, grading, sorting and packaging - Reefer Van / Containers

List of few Items under VKGUY

CUT FLWRS & FLOWER BUDS SUITABLE FOR BOQETS OR ORNAMENTAL PURPOSES,FRESH. OTHR CUT FLWRS & FLOWER BUDS SUITABLE FOR BOQETS/FOR ORNMNTL PURPSES TEA, WHETHER OR NOT FLAVOURED: ALL ITEMS COVERED BY ITC (HS) CODE 0902 A TOTAL OF 792 PRODUCTS covered under VKGUY(appendix 37a)

DEPB RATES

Product Group: Food Products Product Code: 67 Sl.No. Description

DEPB Rate 1 Bulk Tea/Tea bags/ Tea in consumer pack/Tea packed in 4 OTS Cans 2 Chicory/Coffee 4 3 Chutneys/condiments paste/ Vegetables/ pickles 4 packed in OTS cans 4 Fruit jams/ fruit Jelly packed in OTS cans 4 5 Fruit juice Pulp/concentrates, packed in OTS cans 4 6 Salt packed in HDPE/LDPE/PP Woven bags 4 7 Walnut kernels packed in consumer pack. 4 8 Biscuits 4 9 Meat & Meat Products. 4 10 White Sugar 4 11 Cocoa Butter equivalent (CBE) 5 12 Raw Sugar 4

ASSISTANCE TO STATES FOR DEVELOPING EXPORT INFRASTRUCTURE & ALLIED ACTIVITIES (ASIDE)
Funds under the Scheme can be sanctioned and utilized for Creation of new Export Promotion Industrial Parks/Zones (Agri Business Zones) and augmenting facilities in the existing ones. FOCUS MARKET SCHEME (FMS) Objective-To offset high freight cost and other externalities to select international markets with a view to enhance Indias export competitiveness in these countries. Entitlement-Exporters of all products to notified countries shall be entitled for Duty Credit Scrip equivalent to 3% of FOB value of exports. Ineligible Exports Categories Cereals, Sugar, Milk & Milk Products

FPS IN APEDA
Objective is to incentivise export of such products which have high export intensity / employment potential, so as to offset infrastructure inefficiencies and other associated costs involved in marketing of these products. Exports of notified products (as in Appendix 37D of HBPv ) to all countries (including SEZ units) shall be entitled for Duty Credit scrip equivalent to2 % of FOB value of exports (in free foreign exchange) for exports made from 27.8 2009 onwards. However, Special Focus Product(s) /sector(s), covered under Table2 and Table 5of Appendix 7D, shall be granted Duty Credit Scrip equivalent to 5% of FOB value of exports (in free foreign exchange) for exports made from 27.8.2009 onwards. A total of 548 products are under FPS SCHEME. Market Linked Focus Products Scrip (MLFPS): Export of Products/Sectors of high export intensity/ employment potential (which are not covered under present FPS List) would be incentivized at 2% of FOB value of exports (in free foreign exchange) under FPS when exported to the Linked Markets (countries), which are not covered in the present FMS list, as notified in Appendix 37D of HBPv1 , for exports made from 27.08 .2009 onwards.

EXPORT PROMOTION CAPITAL GOODS (EPCG) For AGRO Units

- In the case of EPCG licenses issued to agro units in the AEZs a period of 12 years reckoned from the date of issue of the licenses would be permitted for the fulfillment of export obligation. - The agro units in the AEZs would also have the facility of moving the capital goods imported under the EPCG within the AEZ. - An LUT/ Bond in lieu of BG may be given for EPCG license granted to units in the AEZs provided the EPCG license is taken for export of the primary agricultural product or their value added variants.

MEGA FOOD PARK SCHEME

MFPS is expected to facilitate the achievement of the Vision 2015 of Ministry of Food Processing Industries to raise the processing of perishables in the country from the existing 6% to 20%, value addition from 20% to 35% and the share in global food trade from 1.5% to 3% by the year 2015. The primary objective of the MFPS is to provide adequate / excellent infrastructure facilities for food processing along the value chain from the farm to market. It will include creation of infrastructure near the farm, transportation, logistics and centralized processing centres. The main feature of the scheme is a cluster based approach. The scheme will be demand driven, pre marketed and would facilitate food processing units to meet environmental, safety and social standards. This is done through Central Processing Units.

PATTERN OF ASSISTANCE The scheme envisages a one time capital grant of 50% of the project cost (excluding land cost) subject to a maximum of Rs. 50 crores in general areas and 75% of the project cost (excluding land cost) subject to a ceiling of Rs. 50 crores in difficult and hilly areas i.e. North East Region including Sikkim, J&K, Himachal Pradesh, Uttarakhand and ITDP notified areas of the States.

Trade Fairs Participated by APEDA

S.NO

1
2 3 4 5 6 7 8 9

10
11 12

EVENT'S NAME 11th International Processed Food & Packaging Exhibition 7th Latin American Food Show World Food Moscow 5th Indexpo Muscat Biofach Anuga India Show, Toronto Biofach FHC, China 8th - Bangladesh - Dhaka International Food Processing Exhibition Gulfood Biofach

VENUE

SRI LANKA
MEXICO RUSSIA MUSCAT BALTIMORE, USA GERMANY CANADA TOKYO, JAPAN SHANGHAI, CHINA

BANGLADESH
DUBAI,U.A.E GERMANY

Towns of Export Excellence

S.N O 1 2 TOWN Kollam (Quilon) Indore STATE Kerala Madhya Pradesh PRODUCT CATEGORY Cashew Products Soya Meal and Soya

Malihabad

Uttar Pradesh Horticulture Products

Food Laws & Regulations

The Food Safety and Standards Act, 2006 The Milk and Milk Products Order, 1992 The Standards of Weights and Measures

Act, 1976
The Meat Food Products Order, 1973
The Fruit Products Order, 1955 Prevention of Food Adulteration Act,1954

Quality Inspection Agencies

Problems faced by Exporters

1.Restrictions on the Export of Certain Commodities from Time to Time. 2. Artificially Low Prices in Global Trade Due to Export Subsidies and Domestic Support by the Developed Countries 3. SPS and TBT Issues 4. Lack of Infrastructure leads to High Delivery Costs
Only one-fourth of the markets have common drying yards, trader modules; Covered or open auction platforms exist in two third of regulated markets; Trader modules, viz, shop,godown and platform in front of shops exist in only 2/3rd of regulated markets. Cold Storage units exist only in 9% of markets; Grading facilities exist in less than 1/3rd of markets; Farmers resting facilities 50% of markets;

5. Multiple License System 6. Multiple Tax Structure

STRENGTHS
India is one of the largest food producers

in the world.
Diverse agro-climatic conditions
Large and diverse raw material base

suitable for food processing companies

Huge scientific and research talent pool Good Distribution network

Strategic geographic location

Highest no of people employed under agri industries.

WEAKNESSES
High requirement of working capital Lack of grading standards Low technology level

Highly bureaucratic investment process,

government inefficiency, and corruption have also discouraged foreign investors.

Lack of infrastructure in COLD STORAGE FACILTIES.

OPPORTUNITIES
Large crop and material base in the country

due to agro-ecological variability offers vast potential for agro processing activities.
Agriculture offers enormous opportunities

along its value chain.

Globalization may lead to technological advancement. Rising disposable income levels (40% of household expenditure is on

food items).
FDI invest in agriculture. Organic products can see a tremendous growth. Huge oppurtunity due to influx of retail players particularly for FOOD

INDUSTRIES

THREATS
FDI and other routes of investments by

MNCs pose a potential threat to a large

number of Indian players.
Loss of trained manpower to other

industries due to better working conditions

Rapid developments in contemporary and requirements of the

industry may lead to fast obsolescence.

Import are rising constantly. Heavy subsidy from developed nations. Food Security Bill to tabled in 2013 will impact exports.

TOP LEADING COMPANIES IN AGRICULTURE EXPORT

Monsanto Rallis H. J. Heinz Advanta India Ltd. Phalada Agro Research Foundation Ltd. Poabs Organic Estates National Agro Industries DuPont India Rasi Seeds ABT Industries

News Articles
Unilever to make India agriculture exports hub Agriculture Exports see 121% Jump France, Hong Kong winemakers likely to have JVs with India Agriculture sector facing challenges with rising demand for food

items
Commerce min recommends scrapping of MEP for basmati