Tapping The Potential Of Farm Export Is The Need Of The Hour

By Author: arihantagro.org
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A study reveals that export of fruits and vegetables from India were below the export prices during the decade 2004-2014. In most cases restrictive trade policies ruined the chances of making most of the export/import opportunities. A perfect example to understand this is the 2007-08 global food crisis; even though the Indian products were highly competent with the global prices, rice, wheat and few other commodities were not allowed to utilize the trade opportunity to the fullest.

Also,72% of the time, the domestic prices of commodities such as rice, maize, mango,wheat, potato, banana and buffalo meat were exportable.

Only 11% of the time they were above import parity prices and as such were competing with the imports.17% of the time, these commodities were considered as non-tradable. This was sue to the fact that their prices were between the relevant import-export reference prices.

According to the study titled ‘Price distortion in Indian agriculture’, prices of commodities such as groundnut, cotton, rice, buffalo meat, banana onion, and potato were 90%-100% time below their relevant export parity ...
... prices.

It also stated that the domestic prices of sugar and skimmed milk powder were above import parity prices most of the time.

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