Lok Sabha Question No. 405 (UNSTARRED), answered on 2025-02-04
Subject: Impact of Export Policy
Ministry: COMMERCE AND INDUSTRY
Asked by: Shri Rajabhau Parag Prakash Waje

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

## LOK SABHA UNSTARRED QUESTION NO. 405 ANSWERED ON 04/02/2025

## IMPACT OF EXPORT POLICY

## 405. SHRI RAJABHAU PARAG PRAKASH WAJE:

Will the Minister of COMMERCE & INDUSTRY ( वाणिज्य एवं उद्योग मं त्री ) 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; and

(d) the  steps  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 राज्य मंत्री (श्री णिणिन प्रसाद)

## THE MINISTER OF STATE IN THE MINISTRY OF COMMERCE AND INDUSTRY (SHRI JITIN PRASADA)

(a) & (b) The export policy on grapes and pomegranates has not been subject to frequent changes.  In case of onions, whenever there are tight domestic supply conditions, to ensure food security,  government  has  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 Departments. 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 (d) 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 and Processed Food 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  promote  the  export  of its Scheduled  products, including grapes, onions  and pomegranates  from  across India, the Agricultural and Processed Food  Products Export Development  Authority  (APEDA),  under  the  Department  of  Commerce,  provides  financial assistance to its registered exporters through its Financial Assistance Scheme (FAS). The scheme has the following components:

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

The details of financial assistance guidelines are available at APEDA Website www.apeda.gov.in under the 'Scheme' tab.

Specifically,  for  export  promotion  of  perishable  products  like  fruits  and  vegetables, including  grapes,  pomegranates,  and  onions,  assistance  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  export  of  higher  volumes  of  fresh  fruits  and  vegetables  to long  distance  markets  at  more  competitive  prices.  Under  this,  sea  protocol  development  for export of Pomegranates is being carried out in collaboration with Indian Council of Agricultural Research-National Research Centre (ICAR-NRC)  Solapur on Pomegranate, which once developed and mainstreamed will benefit the farmers and exporters of Pomegranates.

Department  of  Commerce,  through  APEDA  facilitates  the  participation  of  its  member exporters, 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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