Lok Sabha Question No. 4266 (UNSTARRED), answered on 2019-01-07
Subject: Export of Value Added Agricultural Products and Processed Food Items
Ministry: COMMERCE AND INDUSTRY
Asked by: SUPRIYA SADANAND SULE, DHANANJAY BHIMRAO MAHADIK, HEENA VIJAYKUMAR GAVIT, VIJAYSINH MOHITE PATIL, RAJEEV SHANKARRAO SATAV

## GOVERNMENT OF INDIA MINISTRY OF COMMERCE & INDUSTRY (DEPARTMENT OF COMMERCE)

## LOK SABHA UNSTARRED QUESTION NO. 4266 TO BE ANSWERED ON  07 th  JANUARY, 2019

## EXPORT OF VALUE ADDED AGRICULTURAL PRODUCTS AND PROCESSED FOOD ITEMS

4266.  SHRIMATI SUPRIYA SULE:

DR. HEENA VIJAYKUMAR GAVIT:

SHRI DHANANJAY MAHADIK:

SHRI SATAV RAJEEV:

SHRI MOHITE PATIL VIJAYSINH SHANKARRAO:

Will the Minister of COMMERCE & INDUSTRY ( वा ͨणÏय एवं उɮयोग मंğी ) be pleased to state:

- (a) the quantum of value added agricultural products/processed food items exported to various countries during each of the last three years and the current year along with the net foreign exchange earned from such exports;
- (b) whether the share of India in the global trade of value added agricultural products and processed food items is very low in comparison to other developing countries, if so, the details thereof and the reasons therefor;
- (c) the  steps  taken  to  promote  the  export  of  processed  food  items  from  the  country along with the incentive provided to the exporters for the purpose during the said period;
- (d) whether the Government has been liberal in granting permission for the import of processed  foods  from  other  countries,  if  so,  the  details  thereof  and  the  reasons therefor along with the impact thereof; and
- (e) whether the Government has taken decision to permit the export of processed food even if a restriction is imposed on export of the basic farm produce and if so, the details thereof and the reasons therefor along with its impact on the prices of such goods in the domestic market?

## ANSWER

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THE MINISTER OF STATE IN THE MINISTRY OF COMMERCE AND INDUSTRY (SHRI C. R. CHAUDHARY)

- (a) Details of India's exports of value added agricultural/ processed food items during the last three years and the current year are at Annexure-I.
- (b) Data on share of India in the global trade of  value added agricultural products and processed food items is not maintained.
- (c) Promoting exports of value added agricultural/ processed food items from the country is a continuous process. The newly introduced Agriculture Export Policy provides an assurance that  no  restrictions  will  be  placed  on  the  export  of  processed  agricultural products and it will not be brought under the ambit of any kind of export restriction. The Department of Commerce also has several schemes to promote exports, including exports of agricultural products, viz. Trade Infrastructure for Export Scheme (TIES), Market  Access  Initiatives  (MAI)  Scheme  etc.  Incentive  on  export  of  various  value added agricultural/ processed food items is provided to exporters under the Merchandise  Exports  from  India  Scheme  (MEIS).  In  addition,  assistance  to  the exporters of value added agricultural/ processed food items is also available under the Export  Promotion  Schemes  of  Agricultural  &  Processed  Food  Products  Export Development  Authority  (APEDA),  Tobacco  Board,  Tea  Board,  Coffee  Board  and Spices Board. These organisations also seek to promote exports through participation in  international  fairs  &  exhibitions,  taking  initiatives  to  gain  market  access  for different  products  in  different  markets,  dissemination  of  market  intelligence,  taking steps to ensure quality of exported products etc.
- (d) Besides  Vegetable  Oils,  India  does  not  import  significant  quantities  of  any  value added  agricultural/  processed  food  items.  India  imports  significant  quantities  of vegetable oils as the domestic production is not sufficient to meet the demand.
- (e) Yes, Madam. The newly introduced Agriculture Export Policy provides an assurance that  the  processed agricultural  products  will  not  be  brought  under  the ambit  of any kind  of  export  restriction  (viz.  Minimum  Export  Price,  Export  duty,  Export  bans, Export quota, Export capping, Export permit etc.) even though the primary agricultural  product  is  brought  under  some  kind  of  export  restrictions.  This  step  is aimed at providing a stable policy environment for non-essential agricultural products and encouraging exports of value added products rather than the basic commodities. As  quantity  of  exports  of  value  added  agricultural/  processed  food  items  is  a  tiny fraction  of  total  domestic  production,  the  impact  on  domestic  prices  is  likely  to  be insignificant.

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## Annexure-I

## EXPORT OF PROCESSED FOOD/ VALUE-ADDED AGRICULTURAL PRODUCTS

Quantity: in thousand units; Value: USD Million

|                             |      | 2015-16   | 2015-16   | 2016-17    | 2016-17   | 2017-18    | 2017-18   | 2018-19 (Apr-Nov)   | 2018-19 (Apr-Nov)   |
|-----------------------------|------|-----------|-----------|------------|-----------|------------|-----------|---------------------|---------------------|
| DESCRIPTION                 | UNIT | Quantity  | Value     | Quantity   | Value     | Quantity   | Value     | Quantity            | Value               |
| BUFFALO MEAT                | TON  | 1314.22   | 4069.08   | 1323.58    | 3903.49   | 1350.25    | 4037.11   | 825.57              | 2482.55             |
| SPICES                      | KGS  | 831681.12 | 2541.46   | 1014453.31 | 2851.95   | 1096322.85 | 3115.37   | 706439.46           | 2116.30             |
| OILMEALS                    | TON  | 2056.36   | 553.01    | 2632.26    | 805.45    | 3570.78    | 1093.16   | 2531.45             | 818.13              |
| CASTOR OIL                  | KGS  | 586778.44 | 705.20    | 599195.56  | 674.73    | 697092.50  | 1043.99   | 421212.09           | 574.67              |
| COFFEE                      | KGS  | 255744.05 | 783.87    | 288613.37  | 842.84    | 317828.97  | 968.57    | 179676.12           | 532.25              |
| CASHEW                      | TON  | 103.13    | 768.55    | 91.79      | 786.93    | 90.06      | 922.41    | 52.29               | 435.40              |
| TEA                         | KGS  | 245701.97 | 720.03    | 243429.62  | 731.26    | 272894.98  | 837.36    | 175748.64           | 534.77              |
| SUGAR                       | TON  | 3844.45   | 1490.52   | 2544.01    | 1290.71   | 1757.93    | 810.90    | 1792.92             | 652.48              |
| GUERGAM MEAL                | TON  | 325.25    | 496.57    | 419.95     | 463.35    | 494.13     | 646.94    | 330.98              | 440.35              |
| PROCESSED FRUITS AND JUICES | KGS  | 532293.28 | 574.48    | 533152.10  | 584.79    | 573281.42  | 646.92    | 370200.41           | 406.99              |
| CEREAL PREPARATIONS         | TON  | 316.54    | 513.03    | 339.95     | 531.70    | 353.35     | 552.61    | 222.13              | 353.96              |
| MISC PROCESSED ITEMS        |      | 0.00      | 444.28    | 0.00       | 455.59    | 0.00       | 550.55    | 0.00                | 431.12              |
| GROUNDNUT                   | TON  | 542.73    | 620.36    | 725.71     | 809.60    | 504.04     | 524.82    | 310.47              | 299.76              |
| SESAME SEEDS                | KGS  | 328455.73 | 459.77    | 307328.55  | 402.17    | 336850.37  | 463.90    | 225606.50           | 363.49              |
| TOBACCO MANUFACTURED        | -    | -         | 316.68    | -          | 324.31    | -          | 340.37    | -                   | 259.13              |
| ALCOHOLIC BEVERAGES         | LTR  | 242095.45 | 310.31    | 232179.33  | 298.90    | 241013.37  | 326.67    | 165136.12           | 201.37              |
| DAIRY PRODUCTS              | KGS  | 77527.13  | 256.95    | 90352.31   | 253.73    | 102262.55  | 303.05    | 95036.77            | 258.40              |
| PROCESSED VEGETABLES        | KGS  | 174427.54 | 258.92    | 192855.77  | 263.57    | 212203.36  | 282.87    | 151845.58           | 193.06              |
| COCOA PRODUCTS              | KGS  | 32652.56  | 193.31    | 25649.50   | 162.18    | 29579.53   | 177.47    | 17929.09            | 128.30              |
| MILLED PRODUCTS             | KGS  | 431464.50 | 169.12    | 255803.65  | 121.37    | 270396.97  | 136.01    | 200683.67           | 99.76               |
| SHEEP/GOATMEAT              | TON  | 21.95     | 128.38    | 22.01      | 129.69    | 22.80      | 130.90    | 15.92               | 88.81               |
| VEGETABLE OILS              | TON  | 30.60     | 79.93     | 60.47      | 116.29    | 37.06      | 87.83     | 36.46               | 72.72               |
| POULTRY PRODUCTS            | -    | 0.00      | 117.49    | 0.00       | 79.11     | 0.00       | 85.70     | 0.00                | 63.53               |
| ANIMAL CASINGS              | KGS  | 206.36    | 2.61      | 173.24     | 2.06      | 12424.66   | 50.68     | 10090.31            | 46.27               |
| MOLLASES                    | TON  | 818.57    | 101.01    | 390.67     | 47.06     | 123.97     | 15.06     | 340.84              | 33.62               |
| CASHEW NUT SHELL LIQUID     | KGS  | 11677.26  | 8.83      | 11404.76   | 6.56      | 8325.16    | 5.06      | 4083.22             | 3.01                |
| PROCESSED MEAT              | TON  | 0.28      | 0.96      | 0.14       | 0.69      | 0.27       | 1.54      | 0.24                | 1.10                |
| OTHER MEAT                  | TON  | 0.00      | 0.00      | 0.01       | 0.03      | 0.45       | 1.09      | 0.51                | 1.15                |
| TOTAL                       |      |           | 16684.72  |            | 16940.12  |            | 18158.88  |                     | 11892.45            |

Source: DGCI&S