Lok Sabha Question No. 133 (STARRED), answered on 2023-12-12
Subject: Horticulture Share in Global Trade
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: Sanjeev Kumar Singari

## GOVERNMENT OF INDIA MINISTRY OF AGRICULTURE AND FARMERS WELFARE DEPARTMENT OF AGRICULTURE AND FARMERS WELFARE

## LOK SABHA STARRED QUESTION NO. 133

TO BE ANSWERED ON THE 12 TH  DECEMBER, 2023

## HORTICULUTRE SHARE IN GLOBAL TRADE

- *133.    DR. SANJEEV KUMAR SINGARI:

Will the Minister of AGRICULTURE AND FARMERS WELFARE कृ ͪष एवं ͩकसान कãयाण मंğी be pleased to state:

- (a) whether the Government has taken cognizance of the fact that horticulture share of our country in global trade remains insignificant thereby accounting for only 1% of the global trade in vegetables and fruits;
- (b) if so, the details of policies that have been formulated to increase the trade share of our country;
- (c) the details of the steps taken by the Government to mitigate effects of challenges that farmers  face  such  as  inadequate  transport  infrastructure,  inconsistent  supply  chains  and insufficient storage facilities;
- (d) whether the Government is aware that the State of Andhra Pradesh is emerging as one of the major horticulture hubs in the country with a record growth in production and research in horticulture with an annual production of 312.34 lakh metric tonnes using drone and robotic technologies in horticulture being encouraged by Dr. Y.S.R. University; and
- (e) if so, whether the Government plans to replicate similar approaches across the country and if so, the details thereof?

## ANSWER

MINISTER OF AGRICULTURE AND FARMERS WELFARE

कृ ͪष एवं ͩकसान कãयाण मंğी (SHRI ARJUN MUNDA )

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

## STATEMENT REFERRED TO IN REPLY TO PARTS (a) TO (e) OF LOK SABHA STARRED QUESTION NO. 133   DUE FOR REPLY ON 12 TH  DECEMBER, 2023.

- (a): India's total global trade of horticulture products (fruits, vegetables, nuts, spices, honey and floriculture) during 2022 has been of 11639.8 Million USD which accounts for 2.2% of total horticulture  global  trade.  The  global  trade  of  fruits  and  vegetables  during  2022  has  been  of 6438.0 Million USD which accounts for 1.6 % of global trade of fruits and vegetables. The trade of fruits and vegetable has shown increasing trend during 2021 to 2022 i.e. 1.4% to 1.6% of total global trade which is due to cognizance taken by Government of India. India is currently producing 351.92 Million tonnes of horticulture produce which is the highest ever production of horticulture crops. India accounts for about 11.38% of the total world production of fruits and is the leading producers in Mango, banana, Guava, Papaya and Mandarin and overall the second largest producers of fruits & vegetables in the world.
- (b): Government of India  has taken  many initiatives  to  increase  India's  Horticulture  trade share in Global trade. Agricultural & Processed Food  Products Export  Development Authority(APEDA) provides financial assistance under Agriculture and Processed Foods Export Promotion Scheme for infrastructure development, quality development, adoption of international packaging standards and market promotion. Virtual Trade Fairs (VTFs) and Virtual Buyer Seller  Meets have been organized with the  help of Indian Missions to tap the export opportunities in different countries. Export Promotion Forums have been constituted for certain fruits for making a strategy for promoting export. Government has been focusing on promotion of exports of locally sourced GI tagged as well as indigenous, ethnic agricultural products. Sea protocol has been developed to reduce the logistic cost for export of horticulture produce. Series of Capacity Building/training programs have been carried out in the Agri Clusters' and States in association  with  the  State  departments,  SAUs,  KVKs for  the  FPOs/FPCs/SHGs/exporters in order to provide linkage of the Farmer groups to exports and to promote the entrepreneurs for becoming prospective exporters.
- (c): Government of India  is  implementing  a  centrally  sponsored  Scheme-Mission  for Integrated Development of Horticulture (MIDH) for the holistic development of horticulture covering fruits, vegetables, root and tuber crops, mushrooms, spices, flowers, aromatic plants, coconut, cashew and cocoa across the country.

Under  MIDH,  credit  linked  back-ended  assistance  is  provided  for  Refrigerated Transport vehicles for transportation of perishable horticulture crops. Details of the cost norms alongwith pattern of assistance is as under:

| Item                           | Cost Norms                                                                         | Pattern of Assistance                                                                                                                               |
|--------------------------------|------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------|
| Refrigerated Transport vehicle | Rs. 26.00 lakh for 9 MT and prorata basis for lesser capacity, but not below 4 MT. | Credit linked back-ended subsidy @ 35% of the cost of project in general areas and 50% of cost in case of Hilly & Scheduled areas, per beneficiary. |

Under MIDH, financial assistance is provided for construction/Expansion/ Modernization of cold storages of capacity up to 5000 MT in the country. The component of Cold Storage is demand/entrepreneur driven for which Government assistance in the form of credit linked back ended subsidy is available at the rate of 35% of the project cost in  general  areas  and  50%  of  the  project  cost  in  hilly  and  scheduled  areas  through respective State Horticulture Missions.

Further, to strengthen supply chain of horticulture crops, Ministry of Agriculture & Farmers Welfare has launched Horticulture Cluster Development Programme for selected high value horticulture crops. This Programme is designed to leverage the geographical specialization of horticulture clusters and promote integrated and market led development of  pre-production,  production,  post-harvest,  logistics,  branding  and  marketing  activities resulting in overall strengthening of the supply chain of horticulture crops.

Besides,  National  Horticulture  Board  (NHB)  is  implementing  a  scheme  namely 'Capital Investment Subsidy for Construction/Expansion/Modernization of Cold Storages and  Storages  for  Horticulture  Products'.  Under  the  scheme,  credit  linked  back-ended subsidy at the rate of 35% of the capital cost of the project in general areas and 50% in case of North East, hilly & scheduled areas for construction/expansion/modernization of cold storage and Controlled Atmosphere (CA) storage of capacity above 5000 MT and up to 10000 MT is available. In case of North East region, the units with capacity above 1000 MT are also eligible for assistance.

Ministry of Food Processing Industries (MoFPI) implements a Scheme for Integrated Cold Chain, Food Processing and Preservation Infrastructure as one of the components of Pradhan  Mantri  Kisan  Sampada  Yojana  (PMKSY)  with  the  objective  of  reducing  postharvest  losses  of  horticulture  and  non-horticulture  produce  and  providing  remunerative price to farmers for their produce. Under the scheme, Ministry provides financial assistance in the form of grant-in-aid at the rate of 35% for general areas and 50% for North East and Himalayan States, ITDP areas and Islands for storage and transport infrastructure and at the  rate  of  50%  and  75%  respectively  for  value  addition  and  processing  infrastructure subject to a maximum grant-in-aid of Rs. 10.00 crore per project for setting up of integrated cold chain projects including irradiation facility. Standalone cold storages are not covered under the Scheme.

As per available information, currently, there are 8653 cold storages in the country with the capacity of 394.17 lakh MT as on date.

Apart from the above, Government has launched Agriculture Infrastructure Funds (AIF) of Rs. 1.0 lakh crore. Under AIF, there is provision for collateral free term land up to Rs. 2.0 crore and interest subvention of 3% on the term loan availed under AIF. All the post-harvest infrastructure including establishment of cold storages and warehouses are eligible for this financing facility through AIF.

(d) & (e): Yes, Government is aware that Andhra Pradesh is emerging as one of the major horticulture hubs. As per 2nd Advance Estimate 2022-23, production of horticulture crops in Andhra Pradesh is 276.98 lakh metric tonnes. Dr. Y.S.R. Horticultural University is focusing on training,  research  and  demonstrations  of  application  of  Agriculture  drones  in  cultivation  of horticulture  crops.  Further,  Dr.  YSRHU  recently  developed  'Robotic  Sprayer'  using  sensor technology for use in protected structures, demonstrating the university's commitment towards innovation Looking into the unique advantages of Drone technologies in agriculture including horticulture,  the  Department  of  Agriculture  &  Farmers  Welfare  has  released  the  Standard Operating Procedures (SOPs) for use of drones in pesticide and nutrient application. In order to make drone technology affordable to the farmers and other stakeholders of this sector, 100% financial assistance of cost of drone together with the contingent expenditure is extended under Sub-Mission on Agricultural Mechanization (SMAM) to the Farm Machinery Training & Testing Institutes, Institute of Indian Council of Agricultural Research, Krishi Vigyan Kendra (KVK) and State  Agricultural  Universities  (SAUs)  for  its  demonstration  on  the  farmers'  fields.  Farmer Producers Organizations (FPOs) are provided grants @75% for purchase of drones for its demonstration on the farmers; fields. In order to provide agricultural services through drone application, financial assistance @ 40% of the basic cost of drone and its attachments and maximum up to Rs. 4 lakhs is also provided for drone purchase by existing and new Custom Hiring Centers (CHCs). The agriculture graduates establishing CHCs are eligible to receive financial assistance @ 50% of the cost of drone up to a maximum of Rs. 5.00 lakhs.

Apart from the above, Government of India has recently approved a dedicated Central Sector Scheme for providing drones to the Women Self Help Groups (SHGs), with an outlay of Rs. 1261 cores for the period from 2024-25 to 2025-26, under which a provision of financial assistance @ 80% pf the cost of drone and accessories/ancillary charges up to a maximum of Rs. 8.0 lakhs have been made for Women SHGs.

*****