Lok Sabha Question No. 318 (STARRED), answered on 2024-12-17
Subject: Export Policy for Agricultural Products
Ministry: COMMERCE AND INDUSTRY
Asked by: Shri Rajabhau Parag Prakash Waje

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

## LOK SABHA STARRED QUESTION NO. *318 ANSWERED ON 17/12/2024

## EXPORT POLICY FOR AGRICULTURAL PRODUCTS

## *318.   SHRI RAJABHAU PARAG PRAKASH WAJE:

Will the Minister of COMMERCE & INDUSTRY( वाणिज्य एवं उद्योग मंत्री ) be pleased to state:

(a) whether the Government is aware of the frequent changes in the export policy for grapes, onions and pomegranates and its impact on farmers and exporters;

(b) if so, the reasons for the frequent changes in the export policy for these products, and the measures being taken to provide a predictable and consistent policy framework;

(c) the details of the export incentives, procedures, and regulations governing the export of grapes,  onions  and  pomegranates  and  whether  these  are  being  reviewed  to  simplify  and streamline the export process;

(d) whether  the  Government  proposes  to  provide  stable  export  incentives,  simplify  export procedures  and  reduce  the  time  and  cost  of  exporting  agricultural  products,  particularly  for farmers and exporters in Nashik district, if so, the details thereof; and

(e) the details of steps taken/being taken by the Government to promote the export of grapes, onions and pomegranates and to increase India's foreign exchange earnings from the export of these products?

## ANSWER

वाणिज्य और उद्योग मंत्रालय में मंत्री ( श्री पीयूष गोयल )

## THE MINISTER OF  COMMERCE AND INDUSTRY (SHRI PIYUSH GOYAL)

(a) to (e): A statement is laid on the Table of the House.

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## STATEMENT  REFERRED  TO  IN  REPLY  OF  PART  (a)  to  (e)  OF  LOK  SABHA STARRED  QUESTION  NO. 318 FOR ANSWER  ON  17th DECEMBER,  2024 REGARDING 'EXPORT POLICY FOR AGRICULTURAL PRODUCTS'

(a) & (b) The export policy on grapes and pomegranates has not been subject to frequent changes.    In  case  of  onions,  whenever  there  is  tight  domestic  supply  conditions,  to  ensure availability for domestic consumers at reasonable prices, Government had placed restrictions on exports  till  the  supply  situation  has  eased.  In  2024,  on  22 nd March,  export  of  onions  was prohibited by the Government. Subsequently, on 4 th May 2024, the export policy was amended to  facilitate  exports  with  a  floor  price  of  $550  per  MT  and  an  additional  40%  export  duty. Thereafter,  on  13 th September  2024,  the  Government  removed  the  floor  price  on  onions  and reduced the export duty from 40 percent to 20 percent.

Further,  the  policy  interventions  for  maintaining  domestic  availability  at  reasonable  prices  are deliberated  and  decision  taken  through  well-established  institutional  mechanism  which  has representation from major stakeholder from Departments/Ministries. The underlying objectives of the policy interventions are also to ensure fair prices to farmers and opportunities to exporters when there is an excess of supply over demand.

(c) to (e) In  general,  the  Phytosanitary  requirements  and  regulations  laid  down  by  the importing  countries  are  required  to  be  complied  by  exporters  for  the  export  of  horticulture products, including grapes, onions and pomegranates. There is no stipulated procedure for export of  grapes,  pomegranates  and  onions  except  for  grapes  exports  destined  to  EU.  The  export procedure for grapes destined to EU has been developed and is being implemented to comply with  the  residue  limits  stipulated  by  the  EU  and  to  avoid  possibility  of  border  rejections.  To implement the above procedure, a web-based Traceability system, Grapenet has been developed and implemented by Agricultural Products Exports Development Authority (APEDA) covering the farms, pack houses, laboratories etc. The system enables seamless processing of each activity for sourcing, processing, packing, analysis and dispatch of consignment for exporters. There is no user charge levied by APEDA for registration of farmers in the traceability system.

With respect to export incentives, all members of the World Trade Organisation including India  are  committed  to  not  providing  any  export  subsidies  to  agricultural  commodities  after December  2023,  including  subsidies  on  grapes,  pomegranates,  and  onions.  This  includes  any subsidies for marketing and transportation of goods.

To  increase  the  productivity  and  output  of  its  Scheduled  products,  including  grapes, onions  and  pomegranates  from  across  India,  including  from  Nashik,  the  Agricultural  and Processed  Food  Products  Export  Development  Authority  (APEDA),  under  the  Department  of Commerce, provides financial assistance through its  Financial  Assistance  Scheme  (FAS).  The scheme has the following components:

- i. Development of Export Infrastructure
- ii. Quality Development
- iii. Market Development

Specifically, for increasing productivity and output of perishable products like fruits and vegetables, including grapes, pomegranates, and onions, financial assistance under the scheme is

being  provided  for  development  of  post-harvest  handling  facilities  and  developing  cold  chain network  in  the  form  of  integrated  pack  houses,  reefer  vehicles  and  in-house  testing  facilities. Treatment facilities like Vapour Heat Treatment (VHT), Hot Water Treatment (HWT) etc. are also being established under this scheme to mitigate the infestation/incidence of pests in specific fruits and vegetables.

The Government is focusing on strategic development of the sea protocols for various perishable products which enables higher volumes of fresh fruits and vegetables to long distance markets at more competitive prices. Under this, sea protocol development for Pomegranates is being  carried  out  in  collaboration  with  Indian  Council  of  Agricultural  Research-National Research Centre on Pomegranate (ICAR-NRC  ) Solapur, which once developed and mainstreamed will benefit the farmers of Pomegranates, including those from Nashik.

Department  of  Commerce,  through  APEDA  facilitates  the  participation  of  its  member producers, including from Nashik, in International Trade Fairs including the events exclusively organized for fruits and vegetables such as Asia Fruit Logistica (Hong Kong), MACFRUIT Italy etc. Further, campaign in print/electronic media for promotion and branding of Indian fruits and vegetables  in  key  international  markets  during  prominent  trade  fairs  has  been  initiated  in collaboration with India Brand Equity Foundation.

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