Study finds Indian ag export potential largely untapped
The study recommended the phasing out of “in-built consumer bias and anti-farmer nature” in India’s agriculture trade policies and the creation of a predictable and stable policy.
From 2004-2014, 72% of the time domestic prices of 15 commodities, including potato, mango and banana, were ‘exportable’, while only 11% of the time they were above import-parity prices and were therefore competing within imports.
In the remaining 17% of the period, these domestic commodities were in the ‘non-tradable’ zone as their prices were between the relevant exportable/importable reference prices, according to the study titled ‘Price distortion in Indian agriculture.’
It has stated that, in the case of commodities like onion, banana, potato among others, the Indian prices were 90% to 100% of the time below their corresponding export parity prices.
The study noted that while India’s agri-trade as a percentage of agri-GDP increased from less than 5% in 1990-91 to about 20% by 2013-14, it still hasn’t reached its full potential. It has recommended various policy reforms, including phasing out built-in consumer bias in agri-policies, creating space for private players to have integrated markets, etc.
Read more at financialexpress.com
